COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Published on
EXHIBIT 12.1 NIKE, Inc. Computation of Ratio of Earnings to Fixed Charges | ||||
The following disclosure reflects the Company's continuing operations:
Year Ended May 31, |
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(In millions) |
2017 |
2016 |
2015 |
2014 |
2013 |
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Income before income taxes |
$ |
4,886 |
$ |
4,623 |
$ |
4,205 |
$ |
3,544 |
$ |
3,256 |
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Capitalized interest, net of amortization |
(8 |
) |
(3 |
) |
— |
— |
— |
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Adjusted income before income taxes |
4,878 |
4,620 |
4,205 |
3,544 |
3,256 |
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Add fixed charges: |
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Interest expense(1)(2)
|
121 |
74 |
60 |
58 |
23 |
||||||||||||||
Interest component of leases(3)
|
102 |
66 |
59 |
53 |
48 |
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Total Fixed Charges |
223 |
140 |
119 |
111 |
71 |
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Earnings before income taxes and fixed charges |
$ |
5,101 |
$ |
4,760 |
$ |
4,324 |
$ |
3,655 |
$ |
3,327 |
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Ratio of earnings to total fixed charges |
22.9 |
34.0 |
36.3 |
32.9 |
46.9 |
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(1)
|
Interest expense includes interest both expensed and capitalized and amortization of premiums, discounts and capitalized expenses related to indebtedness. |
(2) |
Interest expense does not include interest related to uncertain tax positions. |
(3)
|
Represents the portion of rental expense which management believes approximates the interest component of operating leases. |