Oregon | 93-0584541 | ||||||||||
(State or other jurisdiction of incorporation) | (IRS Employer Identification No.) |
SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT: | |||||||||||
Class B Common Stock | NKE | New York Stock Exchange | |||||||||
(Title of each class) | (Trading symbol) | (Name of each exchange on which registered) | |||||||||
SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT: | |||||||||||
NONE |
Indicate by check mark: | YES | NO | ||||||||||||||||||||||||||||||||||||
• | if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. | þ | ¨ | |||||||||||||||||||||||||||||||||||
• | if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. | ¨ | þ | |||||||||||||||||||||||||||||||||||
• | whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | þ | ¨ | |||||||||||||||||||||||||||||||||||
• | whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). | þ | ¨ | |||||||||||||||||||||||||||||||||||
• | whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. | |||||||||||||||||||||||||||||||||||||
Large accelerated filer | þ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | Emerging growth company | ☐ | |||||||||||||||||||||||||||||
• | if an emerging growth company, if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ¨ | ||||||||||||||||||||||||||||||||||||
• | whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. | |||||||||||||||||||||||||||||||||||||
• | whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). | ☐ | þ |
As of November 30, 2019, the aggregate market values of the Registrant's Common Stock held by non-affiliates were: | |||
Class A | $ | 7,387,322,889 | |
Class B | 116,456,809,401 | ||
$ | 123,844,132,290 |
As of November 30, 2021, the aggregate market values of the Registrant's Common Stock held by non-affiliates were: | |||||
Class A | $ | 12,101,887,328 | |||
Class B | 215,898,023,875 | ||||
$ | 227,999,911,203 |
As of July | |||||
Class A | |||||
Class B | |||||
PAGE | ||||||||
U.S. RETAIL STORES | NUMBER | |||||
NIKE Brand factory stores | ||||||
NIKE Brand in-line stores (including employee-only stores) | ||||||
Converse stores (including factory stores) | ||||||
TOTAL |
NON-U.S. RETAIL STORES | NUMBER | |||||
NIKE Brand factory stores | ||||||
NIKE Brand in-line stores (including employee-only stores) | ||||||
Converse stores (including factory stores) | ||||||
TOTAL |
Mark G. Parker, Executive Chairman — Mr. Parker, | |||||||||||
John J. Donahoe II, President and Chief Executive Officer — Mr. Donahoe, | |||||||||||
Andrew Campion, Chief Operating Officer — Mr. Campion, | |||||||||||
Matthew Friend, Executive Vice President and Chief Financial Officer — Mr. Friend, | |||||||||||
Monique S. Matheson, Executive Vice President, | |||||||||||
Heidi O'Neill, President of Consumer and Marketplace — Ms. O'Neill, |
PERIOD | TOTAL NUMBER OF SHARES PURCHASED | AVERAGE PRICE PAID PER SHARE | APPROXIMATE DOLLAR VALUE OF SHARES THAT MAY YET BE PURCHASED UNDER THE PLANS OR PROGRAMS (IN MILLIONS) | ||||||||
March 1 — March 31, 2022 | 3,729,125 | $ | 129.76 | $ | 6,915 | ||||||
April 1 — April 30, 2022 | 2,645,732 | $ | 129.85 | $ | 6,571 | ||||||
May 1 — May 31, 2022 | 2,078,150 | $ | 112.74 | $ | 6,337 | ||||||
8,453,007 | $ | 125.61 |
PERIOD | TOTAL NUMBER OF SHARES PURCHASED | AVERAGE PRICE PAID PER SHARE | APPROXIMATE DOLLAR VALUE OF SHARES THAT MAY YET BE PURCHASED UNDER THE PLANS OR PROGRAMS (IN MILLIONS) | |||||
March 1 — March 31, 2020 | 1,872,265 | $ | 85.08 | $ | 10,981 | |||
April 1 — April 30, 2020 | — | $ | — | $ | 10,981 | |||
May 1 — May 31, 2020 | — | $ | — | $ | 10,981 | |||
1,872,265 | $ | 85.08 |
(In millions, except per share data and financial ratios) | FINANCIAL HISTORY | ||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||
Year Ended May 31, | |||||||||||||||
Revenues(1) | $ | 37,403 | $ | 39,117 | $ | 36,397 | $ | 34,350 | $ | 32,376 | |||||
Gross profit | 16,241 | 17,474 | 15,956 | 15,312 | 14,971 | ||||||||||
Gross margin(1) | 43.4 | % | 44.7 | % | 43.8 | % | 44.6 | % | 46.2 | % | |||||
Net income(1)(2) | 2,539 | 4,029 | 1,933 | 4,240 | 3,760 | ||||||||||
Earnings per common share:(2) | |||||||||||||||
Basic | 1.63 | 2.55 | 1.19 | 2.56 | 2.21 | ||||||||||
Diluted | 1.60 | 2.49 | 1.17 | 2.51 | 2.16 | ||||||||||
Weighted average common shares outstanding | 1,558.8 | 1,579.7 | 1,623.8 | 1,657.8 | 1,697.9 | ||||||||||
Diluted weighted average common shares outstanding | 1,591.6 | 1,618.4 | 1,659.1 | 1,692.0 | 1,742.5 | ||||||||||
Cash dividends declared per common share | 0.955 | 0.86 | 0.78 | 0.70 | 0.62 | ||||||||||
Cash provided (used) by operations(1) | 2,485 | 5,903 | 4,955 | 3,846 | 3,399 | ||||||||||
At May 31, | |||||||||||||||
Cash and equivalents(3) | $ | 8,348 | $ | 4,466 | $ | 4,249 | $ | 3,808 | $ | 3,138 | |||||
Short-term investments | 439 | 197 | 996 | 2,371 | 2,319 | ||||||||||
Inventories(1) | 7,367 | 5,622 | 5,261 | 5,055 | 4,838 | ||||||||||
Working capital | 12,272 | 8,659 | 9,094 | 10,587 | 9,667 | ||||||||||
Operating lease right-of-use assets, net(4) | 3,097 | — | — | — | — | ||||||||||
Total assets(4)(5)(6) | 31,342 | 23,717 | 22,536 | 23,259 | 21,379 | ||||||||||
Long-term debt(3) | 9,406 | 3,464 | 3,468 | 3,471 | 1,993 | ||||||||||
Total operating lease liabilities(4) | 3,358 | — | — | — | — | ||||||||||
Redeemable preferred stock | 0.3 | 0.3 | 0.3 | 0.3 | 0.3 | ||||||||||
Shareholders' equity(6) | 8,055 | 9,040 | 9,812 | 12,407 | 12,258 | ||||||||||
Market capitalization | 153,553 | 120,951 | 114,983 | 87,084 | 92,867 | ||||||||||
Financial Ratios: | |||||||||||||||
Return on equity(2)(6) | 29.7 | % | 42.7 | % | 17.4 | % | 34.4 | % | 30.1 | % | |||||
Return on assets(2)(3)(4)(5)(6) | 9.2 | % | 17.4 | % | 8.4 | % | 19.0 | % | 17.5 | % | |||||
Inventory turns | 3.3 | 4.0 | 4.0 | 3.8 | 3.8 | ||||||||||
Current ratio at May 31(3)(4) | 2.5 | 2.1 | 2.5 | 2.9 | 2.8 | ||||||||||
Price/Earnings ratio at May 31(2) | 61.6 | 31.0 | 61.4 | 21.1 | 25.6 |
(UNAUDITED) | 1ST QUARTER | 2ND QUARTER | 3RD QUARTER | 4TH QUARTER | |||||||||||||||||||||||
(In millions, except per share data) | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Revenues(1) | $ | 10,660 | $ | 9,948 | $ | 10,326 | $ | 9,374 | $ | 10,104 | $ | 9,611 | $ | 6,313 | $ | 10,184 | |||||||||||
Gross profit | 4,871 | 4,397 | 4,544 | 4,105 | 4,473 | 4,339 | 2,353 | 4,633 | |||||||||||||||||||
Gross margin(1) | 45.7 | % | 44.2 | % | 44.0 | % | 43.8 | % | 44.3 | % | 45.1 % | 37.3 | % | 45.5 | % | ||||||||||||
Net income (loss)(1) | 1,367 | 1,092 | 1,115 | 847 | 847 | 1,101 | (790 | ) | 989 | ||||||||||||||||||
Earnings (loss) per common share: | |||||||||||||||||||||||||||
Basic | 0.87 | 0.69 | 0.71 | 0.54 | 0.54 | 0.70 | (0.51 | ) | 0.63 | ||||||||||||||||||
Diluted | 0.86 | 0.67 | 0.70 | 0.52 | 0.53 | 0.68 | (0.51 | ) | 0.62 | ||||||||||||||||||
Weighted average common shares outstanding | 1,562.4 | 1,594.0 | 1,560.6 | 1,581.4 | 1,556.3 | 1,572.8 | 1,555.7 | 1,570.2 | |||||||||||||||||||
Diluted weighted average common shares outstanding | 1,597.5 | 1,634.4 | 1,594.4 | 1,620.7 | 1,591.6 | 1,609.6 | 1,555.7 | 1,607.5 | |||||||||||||||||||
Cash dividends declared per common share | 0.22 | 0.20 | 0.245 | 0.22 | 0.245 | 0.22 | 0.245 | 0.22 |
FOR THE TRAILING FOUR QUARTERS ENDED | ||||||||
(Dollars in millions) | MAY 31, 2022 | MAY 31, 2021 | ||||||
Numerator | ||||||||
Net income | $ | 6,046 | $ | 5,727 | ||||
Add: Interest expense (income), net | 205 | 262 | ||||||
Add: Income tax expense | 605 | 934 | ||||||
Earnings before interest and taxes | 6,856 | 6,923 | ||||||
Income tax adjustment(1) | (624) | (970) | ||||||
Earnings before interest and after taxes | $ | 6,232 | $ | 5,953 | ||||
AVERAGE FOR THE TRAILING FIVE QUARTERS ENDED | ||||||||
MAY 31, 2022 | MAY 31, 2021 | |||||||
Denominator | ||||||||
Total debt(2) | $ | 12,722 | $ | 12,890 | ||||
Add: Shareholders' equity | 14,425 | 10,523 | ||||||
Less: Cash and equivalents and Short-term investments | 13,748 | 11,217 | ||||||
Total invested capital | $ | 13,399 | $ | 12,196 | ||||
RETURN ON INVESTED CAPITAL | 46.5 | % | 48.8 | % |
(Dollars in millions, except per share data) | FISCAL 2020 | FISCAL 2019 | % CHANGE | FISCAL 2018 | % CHANGE | ||||||||
Revenues(1) | $ | 37,403 | $ | 39,117 | -4 | % | $ | 36,397 | 7 | % | |||
Cost of sales | 21,162 | 21,643 | -2 | % | 20,441 | 6 | % | ||||||
Gross profit | 16,241 | 17,474 | -7 | % | 15,956 | 10 | % | ||||||
Gross margin(1) | 43.4 | % | 44.7 | % | 43.8 | % | |||||||
Demand creation expense | 3,592 | 3,753 | -4 | % | 3,577 | 5 | % | ||||||
Operating overhead expense | 9,534 | 8,949 | 7 | % | 7,934 | 13 | % | ||||||
Total selling and administrative expense | 13,126 | 12,702 | 3 | % | 11,511 | 10 | % | ||||||
% of revenues | 35.1 | % | 32.5 | % | 31.6 | % | |||||||
Interest expense (income), net | 89 | 49 | — | 54 | — | ||||||||
Other (income) expense, net | 139 | (78 | ) | — | 66 | — | |||||||
Income before income taxes | 2,887 | 4,801 | -40 | % | 4,325 | 11 | % | ||||||
Income tax expense(2) | 348 | 772 | -55 | % | 2,392 | -68 | % | ||||||
Effective tax rate | 12.1 | % | 16.1 | % | 55.3 | % | |||||||
NET INCOME(1) | $ | 2,539 | $ | 4,029 | -37 | % | $ | 1,933 | 108 | % | |||
Diluted earnings per common share | $ | 1.60 | $ | 2.49 | -36 | % | $ | 1.17 | 113 | % |
(Dollars in millions, except per share data) | FISCAL 2022 | FISCAL 2021 | % CHANGE | FISCAL 2020 | % CHANGE | ||||||||||||
Revenues | $ | 46,710 | $ | 44,538 | 5 | % | $ | 37,403 | 19 | % | |||||||
Cost of sales | 25,231 | 24,576 | 3 | % | 21,162 | 16 | % | ||||||||||
Gross profit | 21,479 | 19,962 | 8 | % | 16,241 | 23 | % | ||||||||||
Gross margin | 46.0 | % | 44.8 | % | 43.4 | % | |||||||||||
Demand creation expense | 3,850 | 3,114 | 24 | % | 3,592 | -13 | % | ||||||||||
Operating overhead expense | 10,954 | 9,911 | 11 | % | 9,534 | 4 | % | ||||||||||
Total selling and administrative expense | 14,804 | 13,025 | 14 | % | 13,126 | -1 | % | ||||||||||
% of revenues | 31.7 | % | 29.2 | % | 35.1 | % | |||||||||||
Interest expense (income), net | 205 | 262 | — | 89 | — | ||||||||||||
Other (income) expense, net | (181) | 14 | — | 139 | — | ||||||||||||
Income before income taxes | 6,651 | 6,661 | 0 | % | 2,887 | 131 | % | ||||||||||
Income tax expense | 605 | 934 | -35 | % | 348 | 168 | % | ||||||||||
Effective tax rate | 9.1 | % | 14.0 | % | 12.1 | % | |||||||||||
NET INCOME | $ | 6,046 | $ | 5,727 | 6 | % | $ | 2,539 | 126 | % | |||||||
Diluted earnings per common share | $ | 3.75 | $ | 3.56 | 5 | % | $ | 1.60 | 123 | % |
(Dollars in millions) | FISCAL 2022 | FISCAL 2021 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES(1) | FISCAL 2020 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES(1) | ||||||||||||||||
NIKE, Inc. Revenues: | |||||||||||||||||||||||
NIKE Brand Revenues by: | |||||||||||||||||||||||
Footwear | $ | 29,143 | $ | 28,021 | 4 | % | 4 | % | $ | 23,305 | 20 | % | 18 | % | |||||||||
Apparel | 13,567 | 12,865 | 5 | % | 6 | % | 10,953 | 17 | % | 15 | % | ||||||||||||
Equipment | 1,624 | 1,382 | 18 | % | 18 | % | 1,280 | 8 | % | 7 | % | ||||||||||||
Global Brand Divisions(2) | 102 | 25 | 308 | % | 302 | % | 30 | -17 | % | -17 | % | ||||||||||||
Total NIKE Brand Revenues | 44,436 | 42,293 | 5 | % | 6 | % | 35,568 | 19 | % | 17 | % | ||||||||||||
Converse | 2,346 | 2,205 | 6 | % | 7 | % | 1,846 | 19 | % | 16 | % | ||||||||||||
Corporate(3) | (72) | 40 | — | — | (11) | — | — | ||||||||||||||||
TOTAL NIKE, INC. REVENUES | $ | 46,710 | $ | 44,538 | 5 | % | 6 | % | $ | 37,403 | 19 | % | 17 | % | |||||||||
Supplemental NIKE Brand Revenues Details: | |||||||||||||||||||||||
NIKE Brand Revenues by: | |||||||||||||||||||||||
Sales to Wholesale Customers | $ | 25,608 | $ | 25,898 | -1 | % | -1 | % | $ | 23,156 | 12 | % | 10 | % | |||||||||
Sales through NIKE Direct | 18,726 | 16,370 | 14 | % | 15 | % | 12,382 | 32 | % | 30 | % | ||||||||||||
Global Brand Divisions(2) | 102 | 25 | 308 | % | 302 | % | 30 | -17 | % | -17 | % | ||||||||||||
TOTAL NIKE BRAND REVENUES | $ | 44,436 | $ | 42,293 | 5 | % | 6 | % | $ | 35,568 | 19 | % | 17 | % | |||||||||
NIKE Brand Revenues on a Wholesale Equivalent Basis:(1) | |||||||||||||||||||||||
Sales to Wholesale Customers | $ | 25,608 | $ | 25,898 | -1 | % | -1 | % | $ | 23,156 | 12 | % | 10 | % | |||||||||
Sales from our Wholesale Operations to NIKE Direct Operations | 10,543 | 9,872 | 7 | % | 7 | % | 7,452 | 32 | % | 30 | % | ||||||||||||
TOTAL NIKE BRAND WHOLESALE EQUIVALENT REVENUES | $ | 36,151 | $ | 35,770 | 1 | % | 1 | % | $ | 30,608 | 17 | % | 15 | % | |||||||||
NIKE Brand Wholesale Equivalent Revenues by:(1),(4) | |||||||||||||||||||||||
Men's | $ | 18,797 | $ | 18,391 | 2 | % | 3 | % | $ | 16,430 | 12 | % | 10 | % | |||||||||
Women's | 8,273 | 8,225 | 1 | % | 1 | % | 6,954 | 18 | % | 16 | % | ||||||||||||
NIKE Kids' | 4,874 | 4,882 | 0 | % | 0 | % | 4,199 | 16 | % | 14 | % | ||||||||||||
Jordan Brand | 5,122 | 4,780 | 7 | % | 7 | % | 3,687 | 30 | % | 27 | % | ||||||||||||
Others(5) | (915) | (508) | -80 | % | -79 | % | (662) | 23 | % | 24 | % | ||||||||||||
TOTAL NIKE BRAND WHOLESALE EQUIVALENT REVENUES | $ | 36,151 | $ | 35,770 | 1 | % | 1 | % | $ | 30,608 | 17 | % | 15 | % |
(Dollars in millions) | FISCAL 2020 | FISCAL 2019 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES(1) | FISCAL 2018 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES(1) | ||||||||||
NIKE, Inc. Revenues: | |||||||||||||||||
NIKE Brand Revenues by: | |||||||||||||||||
Footwear | $ | 23,305 | $ | 24,222 | -4 | % | -2 | % | $ | 22,268 | 9 | % | 12 | % | |||
Apparel | 10,953 | 11,550 | -5 | % | -3 | % | 10,733 | 8 | % | 11 | % | ||||||
Equipment | 1,280 | 1,404 | -9 | % | -6 | % | 1,396 | 1 | % | 4 | % | ||||||
Global Brand Divisions(2) | 30 | 42 | -29 | % | -26 | % | 88 | -52 | % | -53 | % | ||||||
Total NIKE Brand Revenues | 35,568 | 37,218 | -4 | % | -2 | % | 34,485 | 8 | % | 11 | % | ||||||
Converse | 1,846 | 1,906 | -3 | % | -1 | % | 1,886 | 1 | % | 3 | % | ||||||
Corporate(3) | (11 | ) | (7 | ) | ��� | — | 26 | — | — | ||||||||
TOTAL NIKE, INC. REVENUES | $ | 37,403 | $ | 39,117 | -4 | % | -2 | % | $ | 36,397 | 7 | % | 11 | % | |||
Supplemental NIKE Brand Revenues Details: | |||||||||||||||||
NIKE Brand Revenues by: | |||||||||||||||||
Sales to Wholesale Customers | $ | 23,156 | $ | 25,423 | -9 | % | -7 | % | $ | 23,969 | 6 | % | 10 | % | |||
Sales through NIKE Direct | 12,382 | 11,753 | 5 | % | 8 | % | 10,428 | 13 | % | 16 | % | ||||||
Global Brand Divisions(2) | 30 | 42 | -29 | % | -26 | % | 88 | -52 | % | -53 | % | ||||||
TOTAL NIKE BRAND REVENUES | $ | 35,568 | $ | 37,218 | -4 | % | -2 | % | $ | 34,485 | 8 | % | 11 | % | |||
NIKE Brand Revenues on a Wholesale Equivalent Basis:(1) | |||||||||||||||||
Sales to Wholesale Customers | $ | 23,156 | $ | 25,423 | -9 | % | -7 | % | $ | 23,969 | 6 | % | 10 | % | |||
Sales from our Wholesale Operations to NIKE Direct Operations | 7,452 | 7,127 | 5 | % | 7 | % | 6,332 | 13 | % | 16 | % | ||||||
TOTAL NIKE BRAND WHOLESALE EQUIVALENT REVENUES | $ | 30,608 | $ | 32,550 | -6 | % | -4 | % | $ | 30,301 | 7 | % | 11 | % | |||
NIKE Brand Wholesale Equivalent Revenues by:(1) | |||||||||||||||||
Men's | $ | 16,694 | $ | 17,737 | -6 | % | -4 | % | $ | 16,698 | 6 | % | 10 | % | |||
Women's | 6,999 | 7,380 | -5 | % | -3 | % | 6,913 | 7 | % | 11 | % | ||||||
NIKE Kids' | 5,033 | 5,283 | -5 | % | -3 | % | 4,906 | 8 | % | 11 | % | ||||||
Others(4) | 1,882 | 2,150 | -12 | % | -10 | % | 1,784 | 21 | % | 25 | % | ||||||
TOTAL NIKE BRAND WHOLESALE EQUIVALENT REVENUES | $ | 30,608 | $ | 32,550 | -6 | % | -4 | % | $ | 30,301 | 7 | % | 11 | % | |||
NIKE Brand Wholesale Equivalent Revenues by:(1) | |||||||||||||||||
Running | $ | 3,830 | $ | 4,488 | -15 | % | -12 | % | $ | 4,496 | 0 | % | 4 | % | |||
NIKE Basketball | 1,508 | 1,597 | -6 | % | -4 | % | 1,494 | 7 | % | 9 | % | ||||||
Jordan Brand | 3,609 | 3,138 | 15 | % | 16 | % | 2,856 | 10 | % | 12 | % | ||||||
Football (Soccer) | 1,575 | 1,894 | -17 | % | -14 | % | 2,146 | -12 | % | -6 | % | ||||||
Training | 2,688 | 3,137 | -14 | % | -13 | % | 3,126 | 0 | % | 3 | % | ||||||
Sportswear | 12,285 | 12,442 | -1 | % | 1 | % | 10,720 | 16 | % | 21 | % | ||||||
Others(5) | 5,113 | 5,854 | -13 | % | -10 | % | 5,463 | 7 | % | 9 | % | ||||||
TOTAL NIKE BRAND WHOLESALE EQUIVALENT REVENUES | $ | 30,608 | $ | 32,550 | -6 | % | -4 | % | $ | 30,301 | 7 | % | 11 | % |
*Wholesale equivalent |
(Dollars in millions) | FISCAL 2022 | FISCAL 2021 | % CHANGE | FISCAL 2020 | % CHANGE | ||||||||||||
Demand creation expense(1) | $ | 3,850 | $ | 3,114 | 24 | % | $ | 3,592 | -13 | % | |||||||
Operating overhead expense | 10,954 | 9,911 | 11 | % | 9,534 | 4 | % | ||||||||||
Total selling and administrative expense | $ | 14,804 | $ | 13,025 | 14 | % | $ | 13,126 | -1 | % | |||||||
% of revenues | 31.7 | % | 29.2 | % | 250 | bps | 35.1 | % | (590) | bps |
(Dollars in millions) | FISCAL 2020 | FISCAL 2019 | % CHANGE | FISCAL 2018 | % CHANGE | ||||||||
Demand creation expense(1) | $ | 3,592 | $ | 3,753 | -4 | % | $ | 3,577 | 5 | % | |||
Operating overhead expense | 9,534 | 8,949 | 7 | % | 7,934 | 13 | % | ||||||
Total selling and administrative expense | $ | 13,126 | $ | 12,702 | 3 | % | $ | 11,511 | 10 | % | |||
% of revenues | 35.1 | % | 32.5 | % | 260 | bps | 31.6 | % | 90 | bps |
(Dollars in millions) | FISCAL 2022 | FISCAL 2021 | FISCAL 2020 | |||||||||||||||||
Other (income) expense, net | $ | (181) | $ | 14 | $ | 139 |
(Dollars in millions) | FISCAL 2020 | FISCAL 2019 | FISCAL 2018 | |||||||||
Other (income) expense, net | $ | 139 | $ | (78 | ) | $ | 66 |
FISCAL 2020 | FISCAL 2019 | % CHANGE | FISCAL 2018 | % CHANGE | ||||
Effective tax rate | 12.1 | % | 16.1 | % | (400) bps | 55.3 | % | (3,920) bps |
FISCAL 2022 | FISCAL 2021 | % CHANGE | FISCAL 2020 | % CHANGE | |||||||||||||
Effective tax rate | 9.1 | % | 14.0 | % | (490) bps | 12.1 | % | 190 bps |
(Dollars in millions) | FISCAL 2022 | FISCAL 2021 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES(1) | FISCAL 2020 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES(1) | ||||||||||||||||
North America | $ | 18,353 | $ | 17,179 | 7 | % | 7 | % | $ | 14,484 | 19 | % | 19 | % | |||||||||
Europe, Middle East & Africa | 12,479 | 11,456 | 9 | % | 12 | % | 9,347 | 23 | % | 17 | % | ||||||||||||
Greater China | 7,547 | 8,290 | -9 | % | -13 | % | 6,679 | 24 | % | 19 | % | ||||||||||||
Asia Pacific & Latin America(2) | 5,955 | 5,343 | 11 | % | 16 | % | 5,028 | 6 | % | 8 | % | ||||||||||||
Global Brand Divisions(3) | 102 | 25 | 308 | % | 302 | % | 30 | -17 | % | -17 | % | ||||||||||||
TOTAL NIKE BRAND | 44,436 | 42,293 | 5 | % | 6 | % | 35,568 | 19 | % | 17 | % | ||||||||||||
Converse | 2,346 | 2,205 | 6 | % | 7 | % | 1,846 | 19 | % | 16 | % | ||||||||||||
Corporate(4) | (72) | 40 | — | — | (11) | — | — | ||||||||||||||||
TOTAL NIKE, INC. REVENUES | $ | 46,710 | $ | 44,538 | 5 | % | 6 | % | $ | 37,403 | 19 | % | 17 | % |
(Dollars in millions) | FISCAL 2020 | FISCAL 2019 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES(1) | FISCAL 2018 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES(1) | ||||||||||
North America | $ | 14,484 | $ | 15,902 | -9 | % | -9 | % | $ | 14,855 | 7 | % | 7 | % | |||
Europe, Middle East & Africa | 9,347 | 9,812 | -5 | % | -1 | % | 9,242 | 6 | % | 11 | % | ||||||
Greater China | 6,679 | 6,208 | 8 | % | 11 | % | 5,134 | 21 | % | 24 | % | ||||||
Asia Pacific & Latin America | 5,028 | 5,254 | -4 | % | 1 | % | 5,166 | 2 | % | 13 | % | ||||||
Global Brand Divisions(2) | 30 | 42 | -29 | % | -26 | % | 88 | -52 | % | -53 | % | ||||||
TOTAL NIKE BRAND | 35,568 | 37,218 | -4 | % | -2 | % | 34,485 | 8 | % | 11 | % | ||||||
Converse | 1,846 | 1,906 | -3 | % | -1 | % | 1,886 | 1 | % | 3 | % | ||||||
Corporate(3) | (11 | ) | (7 | ) | — | — | 26 | — | — | ||||||||
TOTAL NIKE, INC. REVENUES | $ | 37,403 | $ | 39,117 | -4 | % | -2 | % | $ | 36,397 | 7 | % | 11 | % |
(Dollars in millions) | FISCAL 2022 | FISCAL 2021 | % CHANGE | FISCAL 2020 | % CHANGE | ||||||||||||||||||||||||
North America | $ | 5,114 | $ | 5,089 | 0 | % | $ | 2,899 | 76 | % | |||||||||||||||||||
Europe, Middle East & Africa | 3,293 | 2,435 | 35 | % | 1,541 | 58 | % | ||||||||||||||||||||||
Greater China | 2,365 | 3,243 | -27 | % | 2,490 | 30 | % | ||||||||||||||||||||||
Asia Pacific & Latin America | 1,896 | 1,530 | 24 | % | 1,184 | 29 | % | ||||||||||||||||||||||
Global Brand Divisions | (4,262) | (3,656) | -17 | % | (3,468) | -5 | % | ||||||||||||||||||||||
TOTAL NIKE BRAND(1) | $ | 8,406 | $ | 8,641 | -3 | % | $ | 4,646 | 86 | % | |||||||||||||||||||
Converse | 669 | 543 | 23 | % | 297 | 83 | % | ||||||||||||||||||||||
Corporate | (2,219) | (2,261) | 2 | % | (1,967) | -15 | % | ||||||||||||||||||||||
TOTAL NIKE, INC. EARNINGS BEFORE INTEREST AND TAXES(1) | $ | 6,856 | $ | 6,923 | -1 | % | $ | 2,976 | 133 | % | |||||||||||||||||||
EBIT margin(1) | 14.7 | % | 15.5 | % | 8.0 | % | |||||||||||||||||||||||
Interest expense (income), net | 205 | 262 | — | 89 | — | ||||||||||||||||||||||||
TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES | $ | 6,651 | $ | 6,661 | 0 | % | $ | 2,887 | 131 | % |
(Dollars in millions) | FISCAL 2020 | FISCAL 2019 | % CHANGE | FISCAL 2018 | % CHANGE | ||||||||||||
North America | $ | 2,899 | $ | 3,925 | -26 | % | $ | 3,600 | 9 | % | |||||||
Europe, Middle East & Africa | 1,541 | 1,995 | -23 | % | 1,587 | 26 | % | ||||||||||
Greater China | 2,490 | 2,376 | 5 | % | 1,807 | 31 | % | ||||||||||
Asia Pacific & Latin America | 1,184 | 1,323 | -11 | % | 1,189 | 11 | % | ||||||||||
Global Brand Divisions | (3,468 | ) | (3,262 | ) | -6 | % | (2,658 | ) | -23 | % | |||||||
TOTAL NIKE BRAND(1) | 4,646 | 6,357 | -27 | % | 5,525 | 15 | % | ||||||||||
Converse | 297 | 303 | -2 | % | 310 | -2 | % | ||||||||||
Corporate | (1,967 | ) | (1,810 | ) | -9 | % | (1,456 | ) | -24 | % | |||||||
TOTAL NIKE, INC. EARNINGS BEFORE INTEREST AND TAXES(1) | 2,976 | 4,850 | -39 | % | 4,379 | 11 | % | ||||||||||
Interest expense (income), net | 89 | 49 | — | 54 | — | ||||||||||||
TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES | $ | 2,887 | $ | 4,801 | -40 | % | $ | 4,325 | 11 | % |
(1) Total NIKE Brand EBIT, |
(Dollars in millions) | FISCAL 2020 | FISCAL 2019 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | FISCAL 2018 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | ||||||||||
Revenues by: | |||||||||||||||||
Footwear | $ | 9,329 | $ | 10,045 | -7 | % | -7 | % | $ | 9,322 | 8 | % | 8 | % | |||
Apparel | 4,639 | 5,260 | -12 | % | -12 | % | 4,938 | 7 | % | 7 | % | ||||||
Equipment | 516 | 597 | -14 | % | -14 | % | 595 | 0 | % | 0 | % | ||||||
TOTAL REVENUES | $ | 14,484 | $ | 15,902 | -9 | % | -9 | % | $ | 14,855 | 7 | % | 7 | % | |||
Revenues by: | |||||||||||||||||
Sales to Wholesale Customers | $ | 9,371 | $ | 10,875 | -14 | % | -14 | % | $ | 10,159 | 7 | % | 7 | % | |||
Sales through NIKE Direct | 5,113 | 5,027 | 2 | % | 2 | % | 4,696 | 7 | % | 7 | % | ||||||
TOTAL REVENUES | $ | 14,484 | $ | 15,902 | -9 | % | -9 | % | $ | 14,855 | 7 | % | 7 | % | |||
EARNINGS BEFORE INTEREST AND TAXES | $ | 2,899 | $ | 3,925 | -26 | % | $ | 3,600 | 9 | % |
(Dollars in millions) | FISCAL 2022 | FISCAL 2021 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | FISCAL 2020 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | ||||||||||||||||
Revenues by: | |||||||||||||||||||||||
Footwear | $ | 12,228 | $ | 11,644 | 5 | % | 5 | % | $ | 9,329 | 25 | % | 25 | % | |||||||||
Apparel | 5,492 | 5,028 | 9 | % | 9 | % | 4,639 | 8 | % | 8 | % | ||||||||||||
Equipment | 633 | 507 | 25 | % | 25 | % | 516 | -2 | % | -2 | % | ||||||||||||
TOTAL REVENUES | $ | 18,353 | $ | 17,179 | 7 | % | 7 | % | $ | 14,484 | 19 | % | 19 | % | |||||||||
Revenues by: | |||||||||||||||||||||||
Sales to Wholesale Customers | $ | 9,621 | $ | 10,186 | -6 | % | -6 | % | $ | 9,371 | 9 | % | 9 | % | |||||||||
Sales through NIKE Direct | 8,732 | 6,993 | 25 | % | 25 | % | 5,113 | 37 | % | 37 | % | ||||||||||||
TOTAL REVENUES | $ | 18,353 | $ | 17,179 | 7 | % | 7 | % | $ | 14,484 | 19 | % | 19 | % | |||||||||
EARNINGS BEFORE INTEREST AND TAXES | $ | 5,114 | $ | 5,089 | 0 | % | $ | 2,899 | 76 | % |
(Dollars in millions) | FISCAL 2020 | FISCAL 2019 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | FISCAL 2018 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | (Dollars in millions) | FISCAL 2022 | FISCAL 2021 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | FISCAL 2020 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | |||||||||||||||||||||||||
Revenues by: | Revenues by: | |||||||||||||||||||||||||||||||||||||||
Footwear | $ | 5,892 | $ | 6,293 | -6 | % | -3 | % | $ | 5,875 | 7 | % | 12 | % | Footwear | $ | 7,388 | $ | 6,970 | 6 | % | 9 | % | $ | 5,892 | 18 | % | 13 | % | |||||||||||
Apparel | 3,053 | 3,087 | -1 | % | 2 | % | 2,940 | 5 | % | 9 | % | Apparel | 4,527 | 3,996 | 13 | % | 16 | % | 3,053 | 31 | % | 25 | % | |||||||||||||||||
Equipment | 402 | 432 | -7 | % | -3 | % | 427 | 1 | % | 5 | % | Equipment | 564 | 490 | 15 | % | 17 | % | 402 | 22 | % | 19 | % | |||||||||||||||||
TOTAL REVENUES | $ | 9,347 | $ | 9,812 | -5 | % | -1 | % | $ | 9,242 | 6 | % | 11 | % | TOTAL REVENUES | $ | 12,479 | $ | 11,456 | 9 | % | 12 | % | $ | 9,347 | 23 | % | 17 | % | |||||||||||
Revenues by: | Revenues by: | |||||||||||||||||||||||||||||||||||||||
Sales to Wholesale Customers | $ | 6,574 | $ | 7,076 | -7 | % | -4 | % | $ | 6,765 | 5 | % | 9 | % | Sales to Wholesale Customers | $ | 8,377 | $ | 7,812 | 7 | % | 10 | % | $ | 6,574 | 19 | % | 14 | % | |||||||||||
Sales through NIKE Direct | 2,773 | 2,736 | 1 | % | 5 | % | 2,477 | 10 | % | 15 | % | Sales through NIKE Direct | 4,102 | 3,644 | 13 | % | 15 | % | 2,773 | 31 | % | 25 | % | |||||||||||||||||
TOTAL REVENUES | $ | 9,347 | $ | 9,812 | -5 | % | -1 | % | $ | 9,242 | 6 | % | 11 | % | TOTAL REVENUES | $ | 12,479 | $ | 11,456 | 9 | % | 12 | % | $ | 9,347 | 23 | % | 17 | % | |||||||||||
EARNINGS BEFORE INTEREST AND TAXES | $ | 1,541 | $ | 1,995 | -23 | % | $ | 1,587 | 26 | % | EARNINGS BEFORE INTEREST AND TAXES | $ | 3,293 | $ | 2,435 | 35 | % | $ | 1,541 | 58 | % |
(Dollars in millions) | FISCAL 2022 | FISCAL 2021 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | FISCAL 2020 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | ||||||||||||||||
Revenues by: | |||||||||||||||||||||||
Footwear | $ | 5,416 | $ | 5,748 | -6 | % | -10 | % | $ | 4,635 | 24 | % | 19 | % | |||||||||
Apparel | 1,938 | 2,347 | -17 | % | -21 | % | 1,896 | 24 | % | 19 | % | ||||||||||||
Equipment | 193 | 195 | -1 | % | -6 | % | 148 | 32 | % | 26 | % | ||||||||||||
TOTAL REVENUES | $ | 7,547 | $ | 8,290 | -9 | % | -13 | % | $ | 6,679 | 24 | % | 19 | % | |||||||||
Revenues by: | |||||||||||||||||||||||
Sales to Wholesale Customers | $ | 4,081 | $ | 4,513 | -10 | % | -14 | % | $ | 3,803 | 19 | % | 14 | % | |||||||||
Sales through NIKE Direct | 3,466 | 3,777 | -8 | % | -12 | % | 2,876 | 31 | % | 26 | % | ||||||||||||
TOTAL REVENUES | $ | 7,547 | $ | 8,290 | -9 | % | -13 | % | $ | 6,679 | 24 | % | 19 | % | |||||||||
EARNINGS BEFORE INTEREST AND TAXES | $ | 2,365 | $ | 3,243 | -27 | % | $ | 2,490 | 30 | % |
(Dollars in millions) | FISCAL 2020 | FISCAL 2019 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | FISCAL 2018 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | ||||||||||
Revenues by: | |||||||||||||||||
Footwear | $ | 4,635 | $ | 4,262 | 9 | % | 12 | % | $ | 3,496 | 22 | % | 25 | % | |||
Apparel | 1,896 | 1,808 | 5 | % | 8 | % | 1,508 | 20 | % | 23 | % | ||||||
Equipment | 148 | 138 | 7 | % | 11 | % | 130 | 6 | % | 8 | % | ||||||
TOTAL REVENUES | $ | 6,679 | $ | 6,208 | 8 | % | 11 | % | $ | 5,134 | 21 | % | 24 | % | |||
Revenues by: | |||||||||||||||||
Sales to Wholesale Customers | $ | 3,803 | $ | 3,726 | 2 | % | 6 | % | $ | 3,216 | 16 | % | 19 | % | |||
Sales through NIKE Direct | 2,876 | 2,482 | 16 | % | 20 | % | 1,918 | 29 | % | 33 | % | ||||||
TOTAL REVENUES | $ | 6,679 | $ | 6,208 | 8 | % | 11 | % | $ | 5,134 | 21 | % | 24 | % | |||
EARNINGS BEFORE INTEREST AND TAXES | $ | 2,490 | $ | 2,376 | 5 | % | $ | 1,807 | 31 | % |
(Dollars in millions) | FISCAL 2020 | FISCAL 2019 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | FISCAL 2018 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | (Dollars in millions) | FISCAL 2022 | FISCAL 2021 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | FISCAL 2020 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | |||||||||||||||||||||||||
Revenues by: | Revenues by: | |||||||||||||||||||||||||||||||||||||||
Footwear | $ | 3,449 | $ | 3,622 | -5 | % | 0 | % | $ | 3,575 | 1 | % | 12 | % | Footwear | $ | 4,111 | $ | 3,659 | 12 | % | 17 | % | $ | 3,449 | 6 | % | 8 | % | |||||||||||
Apparel | 1,365 | 1,395 | -2 | % | 3 | % | 1,347 | 4 | % | 15 | % | Apparel | 1,610 | 1,494 | 8 | % | 12 | % | 1,365 | 9 | % | 10 | % | |||||||||||||||||
Equipment | 214 | 237 | -10 | % | -4 | % | 244 | -3 | % | 8 | % | Equipment | 234 | 190 | 23 | % | 28 | % | 214 | -11 | % | -9 | % | |||||||||||||||||
TOTAL REVENUES | $ | 5,028 | $ | 5,254 | -4 | % | 1 | % | $ | 5,166 | 2 | % | 13 | % | TOTAL REVENUES | $ | 5,955 | $ | 5,343 | 11 | % | 16 | % | $ | 5,028 | 6 | % | 8 | % | |||||||||||
Revenues by: | Revenues by: | |||||||||||||||||||||||||||||||||||||||
Sales to Wholesale Customers | $ | 3,408 | $ | 3,746 | -9 | % | -4 | % | $ | 3,829 | -2 | % | 9 | % | Sales to Wholesale Customers | $ | 3,529 | $ | 3,387 | 4 | % | 8 | % | $ | 3,408 | -1 | % | 2 | % | |||||||||||
Sales through NIKE Direct | 1,620 | 1,508 | 7 | % | 12 | % | 1,337 | 13 | % | 23 | % | Sales through NIKE Direct | 2,426 | 1,956 | 24 | % | 30 | % | 1,620 | 21 | % | 22 | % | |||||||||||||||||
TOTAL REVENUES | $ | 5,028 | $ | 5,254 | -4 | % | 1 | % | $ | 5,166 | 2 | % | 13 | % | TOTAL REVENUES | $ | 5,955 | $ | 5,343 | 11 | % | 16 | % | $ | 5,028 | 6 | % | 8 | % | |||||||||||
EARNINGS BEFORE INTEREST AND TAXES | $ | 1,184 | $ | 1,323 | -11 | % | $ | 1,189 | 11 | % | EARNINGS BEFORE INTEREST AND TAXES | $ | 1,896 | $ | 1,530 | 24 | % | $ | 1,184 | 29 | % |
(Dollars in millions) | FISCAL 2020 | FISCAL 2019 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | FISCAL 2018 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | (Dollars in millions) | FISCAL 2022 | FISCAL 2021 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | FISCAL 2020 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | |||||||||||||||||||||||||
Revenues | $ | 30 | $ | 42 | -29 | % | -26 | % | $ | 88 | -52 | % | -53 | % | Revenues | $ | 102 | $ | 25 | 308 | % | 302 | % | $ | 30 | -17 | % | -17 | % | |||||||||||
Earnings (Loss) Before Interest and Taxes | $ | (3,468 | ) | $ | (3,262 | ) | -6 | % | $ | (2,658 | ) | -23 | % | Earnings (Loss) Before Interest and Taxes | $ | (4,262) | $ | (3,656) | -17 | % | $ | (3,468) | -5 | % |
(Dollars in millions) | FISCAL 2022 | FISCAL 2021 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | FISCAL 2020 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | ||||||||||||||||
Revenues by: | |||||||||||||||||||||||
Footwear | $ | 2,094 | $ | 1,986 | 5 | % | 6 | % | $ | 1,642 | 21 | % | 17 | % | |||||||||
Apparel | 103 | 104 | -1 | % | -3 | % | 89 | 17 | % | 13 | % | ||||||||||||
Equipment | 26 | 29 | -10 | % | -16 | % | 25 | 16 | % | 14 | % | ||||||||||||
Other(1) | 123 | 86 | 43 | % | 42 | % | 90 | -4 | % | -1 | % | ||||||||||||
TOTAL REVENUES | $ | 2,346 | $ | 2,205 | 6 | % | 7 | % | $ | 1,846 | 19 | % | 16 | % | |||||||||
Revenues by: | |||||||||||||||||||||||
Sales to Wholesale Customers | $ | 1,292 | $ | 1,353 | -5 | % | -4 | % | $ | 1,154 | 17 | % | 13 | % | |||||||||
Sales through Direct to Consumer | 931 | 766 | 22 | % | 22 | % | 602 | 27 | % | 24 | % | ||||||||||||
Other(1) | 123 | 86 | 43 | % | 42 | % | 90 | -4 | % | -1 | % | ||||||||||||
TOTAL REVENUES | $ | 2,346 | $ | 2,205 | 6 | % | 7 | % | $ | 1,846 | 19 | % | 16 | % | |||||||||
EARNINGS BEFORE INTEREST AND TAXES | $ | 669 | $ | 543 | 23 | % | $ | 297 | 83 | % |
(Dollars in millions) | FISCAL 2020 | FISCAL 2019 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | FISCAL 2018 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | ||||||||||
Revenues by: | |||||||||||||||||
Footwear | $ | 1,642 | $ | 1,658 | -1 | % | 1 | % | $ | 1,611 | 3 | % | 5 | % | |||
Apparel | 89 | $ | 118 | -25 | % | -22 | % | $ | 144 | -18 | % | -17 | % | ||||
Equipment | 25 | 24 | 4 | % | 8 | % | 28 | -14 | % | -13 | % | ||||||
Other(1) | 90 | 106 | -15 | % | -14 | % | 103 | 3 | % | 4 | % | ||||||
TOTAL REVENUES | $ | 1,846 | $ | 1,906 | -3 | % | -1 | % | $ | 1,886 | 1 | % | 3 | % | |||
Revenues by: | |||||||||||||||||
Sales to Wholesale Customers | $ | 1,154 | $ | 1,247 | -7 | % | -5 | % | $ | 1,310 | -5 | % | 2 | % | |||
Sales through Direct to Consumer | 602 | 553 | 9 | % | 11 | % | 473 | 17 | % | 5 | % | ||||||
Other(1) | 90 | 106 | -15 | % | -14 | % | 103 | 3 | % | 4 | % | ||||||
TOTAL REVENUES | $ | 1,846 | $ | 1,906 | -3 | % | -1 | % | $ | 1,886 | 1 | % | 3 | % | |||
EARNINGS BEFORE INTEREST AND TAXES | $ | 297 | $ | 303 | -2 | % | $ | 310 | -2 | % |
(Dollars in millions) | FISCAL 2020 | FISCAL 2019 | % CHANGE | FISCAL 2018 | % CHANGE | (Dollars in millions) | FISCAL 2022 | FISCAL 2021 | % CHANGE | FISCAL 2020 | % CHANGE | |||||||||||||||||||
Revenues | $ | (11 | ) | $ | (7 | ) | — | $ | 26 | — | Revenues | $ | (72) | $ | 40 | — | $ | (11) | — | |||||||||||
Earnings (Loss) Before Interest and Taxes | $ | (1,967 | ) | $ | (1,810 | ) | -9 | % | $ | (1,456 | ) | -24 | % | Earnings (Loss) Before Interest and Taxes | $ | (2,219) | $ | (2,261) | 2 | % | $ | (1,967) | -15 | % |
•a favorable change of $13 million largely due to higher restructuring-related costs associated with our organizational realignment in the prior year and, to a lesser extent, a net favorable impact related to our strategic distributor partnership transition within APLA in the current year, partially offset by the one-time charge related to the deconsolidation of our Russian operations and higher administrative and wage-related expenses in fiscal 2022. |
• | •Non-Functional Currency Denominated Monetary Assets and Liabilities — Our global subsidiaries have various assets and liabilities, primarily receivables and payables, including intercompany receivables and payables, denominated in currencies other than their functional currencies. These balance sheet items are subject to remeasurement which may create fluctuations in Other (income) expense, net |
DESCRIPTION OF COMMITMENT | CASH PAYMENTS DUE DURING THE YEAR ENDING MAY 31, | ||||||||||||||||||||
(Dollars in millions) | 2021 | 2022 | 2023 | 2024 | 2025 | THEREAFTER | TOTAL | ||||||||||||||
Operating Leases | $ | 550 | $ | 514 | $ | 456 | $ | 416 | $ | 374 | $ | 1,474 | $ | 3,784 | |||||||
Long-Term Debt(1) | 289 | 286 | 786 | 275 | 1,275 | 11,541 | 14,452 | ||||||||||||||
Endorsement Contracts(2) | 1,330 | 1,471 | 1,178 | 1,064 | 1,135 | 3,164 | 9,342 | ||||||||||||||
Product Purchase Obligations(3) | 4,234 | — | — | — | — | — | 4,234 | ||||||||||||||
Other Purchase Obligations(4) | 1,085 | 345 | 189 | 136 | 127 | 345 | 2,227 | ||||||||||||||
Transition Tax Related to the Tax Act(5) | 86 | 86 | 86 | 161 | 215 | 268 | 902 | ||||||||||||||
TOTAL | $ | 7,574 | $ | 2,702 | $ | 2,695 | $ | 2,052 | $ | 3,126 | $ | 16,792 | $ | 34,941 |
(Dollars in millions) | AS OF MAY 31, 2020 | ||
Notes payable, due at mutually agreed-upon dates within one year of issuance or on demand | $ | 248 |
EXPECTED MATURITY DATE YEAR ENDING MAY 31, | EXPECTED MATURITY DATE YEAR ENDING MAY 31, | |||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2021 | 2022 | 2023 | 2024 | 2025 | THEREAFTER | TOTAL | FAIR VALUE | (Dollars in millions) | 2023 | 2024 | 2025 | 2026 | 2027 | THEREAFTER | TOTAL | FAIR VALUE | |||||||||||||||||||||||||||||||||
Foreign Exchange Risk | ||||||||||||||||||||||||||||||||||||||||||||||||||
Japanese Yen Functional Currency | ||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Japanese Yen debt — Fixed rate | ||||||||||||||||||||||||||||||||||||||||||||||||||
Principal payments | $ | 3 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 3 | $ | 3 | ||||||||||||||||||||||||||||||||||
Average interest rate | 2.4 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 2.4 | % | ||||||||||||||||||||||||||||||||||||
Interest Rate Risk | Interest Rate Risk | |||||||||||||||||||||||||||||||||||||||||||||||||
Japanese Yen Functional Currency | ||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Japanese Yen debt — Fixed rate | ||||||||||||||||||||||||||||||||||||||||||||||||||
Principal payments | $ | 3 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 3 | $ | 3 | ||||||||||||||||||||||||||||||||||
Average interest rate | 2.4 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 2.4 | % | ||||||||||||||||||||||||||||||||||||
U.S. Dollar Functional Currency | ||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term U.S. Dollar debt — Fixed rate | Long-term U.S. Dollar debt — Fixed rate | |||||||||||||||||||||||||||||||||||||||||||||||||
Principal payments | $ | — | $ | — | $ | 500 | $ | — | $ | 1,000 | $ | 8,000 | $ | 9,500 | $ | 10,642 | Principal payments | $ | 500 | $ | — | $ | 1,000 | $ | — | $ | 2,000 | $ | 6,000 | $ | 9,500 | $ | 8,933 | |||||||||||||||||
Average interest rate | 0.0 | % | 0.0 | % | 2.3 | % | 0.0 | % | 2.4 | % | 3.1 | % | 3.0 | % | Average interest rate | 2.3 | % | 0.0 | % | 2.4 | % | 0.0 | % | 2.6 | % | 3.3 | % | 3.0 | % |
John J. Donahoe II | Matthew Friend | ||||
President and Chief Executive Officer | Executive Vice President and Chief Financial Officer |
YEAR ENDED MAY 31, | YEAR ENDED MAY 31, | |||||||||||||||||||
(In millions, except per share data) | 2020 | 2019 | 2018 | (In millions, except per share data) | 2022 | 2021 | 2020 | |||||||||||||
Revenues | $ | 37,403 | $ | 39,117 | $ | 36,397 | Revenues | $ | 46,710 | $ | 44,538 | $ | 37,403 | |||||||
Cost of sales | 21,162 | 21,643 | 20,441 | Cost of sales | 25,231 | 24,576 | 21,162 | |||||||||||||
Gross profit | 16,241 | 17,474 | 15,956 | Gross profit | 21,479 | 19,962 | 16,241 | |||||||||||||
Demand creation expense | 3,592 | 3,753 | 3,577 | Demand creation expense | 3,850 | 3,114 | 3,592 | |||||||||||||
Operating overhead expense | 9,534 | 8,949 | 7,934 | Operating overhead expense | 10,954 | 9,911 | 9,534 | |||||||||||||
Total selling and administrative expense | 13,126 | 12,702 | 11,511 | Total selling and administrative expense | 14,804 | 13,025 | 13,126 | |||||||||||||
Interest expense (income), net | 89 | 49 | 54 | Interest expense (income), net | 205 | 262 | 89 | |||||||||||||
Other (income) expense, net | 139 | (78 | ) | 66 | Other (income) expense, net | (181) | 14 | 139 | ||||||||||||
Income before income taxes | 2,887 | 4,801 | 4,325 | Income before income taxes | 6,651 | 6,661 | 2,887 | |||||||||||||
Income tax expense | 348 | 772 | 2,392 | Income tax expense | 605 | 934 | 348 | |||||||||||||
NET INCOME | $ | 2,539 | $ | 4,029 | $ | 1,933 | NET INCOME | $ | 6,046 | $ | 5,727 | $ | 2,539 | |||||||
Earnings per common share: | Earnings per common share: | |||||||||||||||||||
Basic | $ | 1.63 | $ | 2.55 | $ | 1.19 | Basic | $ | 3.83 | $ | 3.64 | $ | 1.63 | |||||||
Diluted | $ | 1.60 | $ | 2.49 | $ | 1.17 | Diluted | $ | 3.75 | $ | 3.56 | $ | 1.60 | |||||||
Weighted average common shares outstanding: | Weighted average common shares outstanding: | |||||||||||||||||||
Basic | 1,558.8 | 1,579.7 | 1,623.8 | Basic | 1,578.8 | 1,573.0 | 1,558.8 | |||||||||||||
Diluted | 1,591.6 | 1,618.4 | 1,659.1 | Diluted | 1,610.8 | 1,609.4 | 1,591.6 |
YEAR ENDED MAY 31, | |||||||||
(Dollars in millions) | 2020 | 2019 | 2018 | ||||||
Net income | $ | 2,539 | $ | 4,029 | $ | 1,933 | |||
Other comprehensive income (loss), net of tax: | |||||||||
Change in net foreign currency translation adjustment | (148 | ) | (173 | ) | (6 | ) | |||
Change in net gains (losses) on cash flow hedges | (130 | ) | 503 | 76 | |||||
Change in net gains (losses) on other | (9 | ) | (7 | ) | 34 | ||||
Total other comprehensive income (loss), net of tax | (287 | ) | 323 | 104 | |||||
TOTAL COMPREHENSIVE INCOME | $ | 2,252 | $ | 4,352 | $ | 2,037 |
YEAR ENDED MAY 31, | |||||||||||
(Dollars in millions) | 2022 | 2021 | 2020 | ||||||||
Net income | $ | 6,046 | $ | 5,727 | $ | 2,539 | |||||
Other comprehensive income (loss), net of tax: | |||||||||||
Change in net foreign currency translation adjustment | (522) | 496 | (148) | ||||||||
Change in net gains (losses) on cash flow hedges | 1,214 | (825) | (130) | ||||||||
Change in net gains (losses) on other | 6 | 5 | (9) | ||||||||
Total other comprehensive income (loss), net of tax | 698 | (324) | (287) | ||||||||
TOTAL COMPREHENSIVE INCOME | $ | 6,744 | $ | 5,403 | $ | 2,252 |
MAY 31, | MAY 31, | |||||||||||||
(In millions) | 2020 | 2019 | (In millions) | 2022 | 2021 | |||||||||
ASSETS | ASSETS | |||||||||||||
Current assets: | Current assets: | |||||||||||||
Cash and equivalents | $ | 8,348 | $ | 4,466 | Cash and equivalents | $ | 8,574 | $ | 9,889 | |||||
Short-term investments | 439 | 197 | Short-term investments | 4,423 | 3,587 | |||||||||
Accounts receivable, net | 2,749 | 4,272 | Accounts receivable, net | 4,667 | 4,463 | |||||||||
Inventories | 7,367 | 5,622 | Inventories | 8,420 | 6,854 | |||||||||
Prepaid expenses and other current assets | 1,653 | 1,968 | Prepaid expenses and other current assets | 2,129 | 1,498 | |||||||||
Total current assets | 20,556 | 16,525 | Total current assets | 28,213 | 26,291 | |||||||||
Property, plant and equipment, net | 4,866 | 4,744 | Property, plant and equipment, net | 4,791 | 4,904 | |||||||||
Operating lease right-of-use assets, net | 3,097 | — | Operating lease right-of-use assets, net | 2,926 | 3,113 | |||||||||
Identifiable intangible assets, net | 274 | 283 | Identifiable intangible assets, net | 286 | 269 | |||||||||
Goodwill | 223 | 154 | Goodwill | 284 | 242 | |||||||||
Deferred income taxes and other assets | 2,326 | 2,011 | Deferred income taxes and other assets | 3,821 | 2,921 | |||||||||
TOTAL ASSETS | $ | 31,342 | $ | 23,717 | TOTAL ASSETS | $ | 40,321 | $ | 37,740 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||
Current liabilities: | Current liabilities: | |||||||||||||
Current portion of long-term debt | $ | 3 | $ | 6 | Current portion of long-term debt | $ | 500 | $ | — | |||||
Notes payable | 248 | 9 | Notes payable | 10 | 2 | |||||||||
Accounts payable | 2,248 | 2,612 | Accounts payable | 3,358 | 2,836 | |||||||||
Current portion of operating lease liabilities | 445 | — | Current portion of operating lease liabilities | 420 | 467 | |||||||||
Accrued liabilities | 5,184 | 5,010 | Accrued liabilities | 6,220 | 6,063 | |||||||||
Income taxes payable | 156 | 229 | Income taxes payable | 222 | 306 | |||||||||
Total current liabilities | 8,284 | 7,866 | Total current liabilities | 10,730 | 9,674 | |||||||||
Long-term debt | 9,406 | 3,464 | Long-term debt | 8,920 | 9,413 | |||||||||
Operating lease liabilities | 2,913 | — | Operating lease liabilities | 2,777 | 2,931 | |||||||||
Deferred income taxes and other liabilities | 2,684 | 3,347 | Deferred income taxes and other liabilities | 2,613 | 2,955 | |||||||||
Commitments and contingencies (Note 18) | Commitments and contingencies (Note 18) | 0 | 0 | |||||||||||
Redeemable preferred stock | — | — | Redeemable preferred stock | — | — | |||||||||
Shareholders' equity: | Shareholders' equity: | |||||||||||||
Common stock at stated value: | Common stock at stated value: | |||||||||||||
Class A convertible — 315 and 315 shares outstanding | — | — | ||||||||||||
Class B — 1,243 and 1,253 shares outstanding | 3 | 3 | ||||||||||||
Class A convertible — 305 and 305 shares outstanding | Class A convertible — 305 and 305 shares outstanding | — | — | |||||||||||
Class B — 1,266 and 1,273 shares outstanding | Class B — 1,266 and 1,273 shares outstanding | 3 | 3 | |||||||||||
Capital in excess of stated value | 8,299 | 7,163 | Capital in excess of stated value | 11,484 | 9,965 | |||||||||
Accumulated other comprehensive income (loss) | (56 | ) | 231 | Accumulated other comprehensive income (loss) | 318 | (380) | ||||||||
Retained earnings (deficit) | (191 | ) | 1,643 | Retained earnings (deficit) | 3,476 | 3,179 | ||||||||
Total shareholders' equity | 8,055 | 9,040 | Total shareholders' equity | 15,281 | 12,767 | |||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 31,342 | $ | 23,717 | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 40,321 | $ | 37,740 |
YEAR ENDED MAY 31, | YEAR ENDED MAY 31, | |||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | 2018 | (Dollars in millions) | 2022 | 2021 | 2020 | |||||||||||||
Cash provided (used) by operations: | Cash provided (used) by operations: | |||||||||||||||||||
Net income | $ | 2,539 | $ | 4,029 | $ | 1,933 | Net income | $ | 6,046 | $ | 5,727 | $ | 2,539 | |||||||
Adjustments to reconcile net income to net cash provided (used) by operations: | Adjustments to reconcile net income to net cash provided (used) by operations: | |||||||||||||||||||
Depreciation | 721 | 705 | 747 | Depreciation | 717 | 744 | 721 | |||||||||||||
Deferred income taxes | (380 | ) | 34 | 647 | Deferred income taxes | (650) | (385) | (380) | ||||||||||||
Stock-based compensation | 429 | 325 | 218 | Stock-based compensation | 638 | 611 | 429 | |||||||||||||
Amortization, impairment and other | 398 | 15 | 27 | Amortization, impairment and other | 123 | 53 | 398 | |||||||||||||
Net foreign currency adjustments | 23 | 233 | (99 | ) | Net foreign currency adjustments | (26) | (138) | 23 | ||||||||||||
Changes in certain working capital components and other assets and liabilities: | Changes in certain working capital components and other assets and liabilities: | |||||||||||||||||||
(Increase) decrease in accounts receivable | 1,239 | (270 | ) | 187 | (Increase) decrease in accounts receivable | (504) | (1,606) | 1,239 | ||||||||||||
(Increase) decrease in inventories | (1,854 | ) | (490 | ) | (255 | ) | (Increase) decrease in inventories | (1,676) | 507 | (1,854) | ||||||||||
(Increase) decrease in prepaid expenses, operating lease right-of-use assets and other current and non-current assets | (654 | ) | (203 | ) | 35 | (Increase) decrease in prepaid expenses, operating lease right-of-use assets and other current and non-current assets | (845) | (182) | (654) | |||||||||||
Increase (decrease) in accounts payable, accrued liabilities, operating lease liabilities and other current and non-current liabilities | 24 | 1,525 | 1,515 | Increase (decrease) in accounts payable, accrued liabilities, operating lease liabilities and other current and non-current liabilities | 1,365 | 1,326 | 24 | |||||||||||||
Cash provided (used) by operations | 2,485 | 5,903 | 4,955 | Cash provided (used) by operations | 5,188 | 6,657 | 2,485 | |||||||||||||
Cash provided (used) by investing activities: | Cash provided (used) by investing activities: | |||||||||||||||||||
Purchases of short-term investments | (2,426 | ) | (2,937 | ) | (4,783 | ) | Purchases of short-term investments | (12,913) | (9,961) | (2,426) | ||||||||||
Maturities of short-term investments | 74 | 1,715 | 3,613 | Maturities of short-term investments | 8,199 | 4,236 | 74 | |||||||||||||
Sales of short-term investments | 2,379 | 2,072 | 2,496 | Sales of short-term investments | 3,967 | 2,449 | 2,379 | |||||||||||||
Additions to property, plant and equipment | (1,086 | ) | (1,119 | ) | (1,028 | ) | Additions to property, plant and equipment | (758) | (695) | (1,086) | ||||||||||
Other investing activities | 31 | 5 | (22 | ) | Other investing activities | (19) | 171 | 31 | ||||||||||||
Cash provided (used) by investing activities | (1,028 | ) | (264 | ) | 276 | Cash provided (used) by investing activities | (1,524) | (3,800) | (1,028) | |||||||||||
Cash provided (used) by financing activities: | Cash provided (used) by financing activities: | |||||||||||||||||||
Proceeds from borrowings, net of debt issuance costs | 6,134 | — | — | Proceeds from borrowings, net of debt issuance costs | — | — | 6,134 | |||||||||||||
Increase (decrease) in notes payable, net | 49 | (325 | ) | 13 | Increase (decrease) in notes payable, net | 15 | (52) | 49 | ||||||||||||
Repayment of borrowings | Repayment of borrowings | — | (197) | (6) | ||||||||||||||||
Proceeds from exercise of stock options and other stock issuances | 885 | 700 | 733 | Proceeds from exercise of stock options and other stock issuances | 1,151 | 1,172 | 885 | |||||||||||||
Repurchase of common stock | (3,067 | ) | (4,286 | ) | (4,254 | ) | Repurchase of common stock | (4,014) | (608) | (3,067) | ||||||||||
Dividends — common and preferred | (1,452 | ) | (1,332 | ) | (1,243 | ) | Dividends — common and preferred | (1,837) | (1,638) | (1,452) | ||||||||||
Other financing activities | (58 | ) | (50 | ) | (84 | ) | Other financing activities | (151) | (136) | (52) | ||||||||||
Cash provided (used) by financing activities | 2,491 | (5,293 | ) | (4,835 | ) | Cash provided (used) by financing activities | (4,836) | (1,459) | 2,491 | |||||||||||
Effect of exchange rate changes on cash and equivalents | (66 | ) | (129 | ) | 45 | Effect of exchange rate changes on cash and equivalents | (143) | 143 | (66) | |||||||||||
Net increase (decrease) in cash and equivalents | 3,882 | 217 | 441 | Net increase (decrease) in cash and equivalents | (1,315) | 1,541 | 3,882 | |||||||||||||
Cash and equivalents, beginning of year | 4,466 | 4,249 | 3,808 | Cash and equivalents, beginning of year | 9,889 | 8,348 | 4,466 | |||||||||||||
CASH AND EQUIVALENTS, END OF YEAR | $ | 8,348 | $ | 4,466 | $ | 4,249 | CASH AND EQUIVALENTS, END OF YEAR | $ | 8,574 | $ | 9,889 | $ | 8,348 | |||||||
Supplemental disclosure of cash flow information: | Supplemental disclosure of cash flow information: | |||||||||||||||||||
Cash paid during the year for: | Cash paid during the year for: | |||||||||||||||||||
Interest, net of capitalized interest | $ | 140 | $ | 153 | $ | 125 | Interest, net of capitalized interest | $ | 290 | $ | 293 | $ | 140 | |||||||
Income taxes | 1,028 | 757 | 529 | Income taxes | 1,231 | 1,177 | 1,028 | |||||||||||||
Non-cash additions to property, plant and equipment | 121 | 160 | 294 | Non-cash additions to property, plant and equipment | 160 | 179 | 121 | |||||||||||||
Dividends declared and not paid | 385 | 347 | 320 | Dividends declared and not paid | 480 | 438 | 385 |
COMMON STOCK | CAPITAL IN EXCESS OF STATED VALUE | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | RETAINED EARNINGS (DEFICIT) | TOTAL | |||||||||||||||||||
CLASS A | CLASS B | ||||||||||||||||||||||
(In millions, except per share data) | SHARES | AMOUNT | SHARES | AMOUNT | |||||||||||||||||||
Balance at May 31, 2017 | 329 | $ | — | 1,314 | $ | 3 | $ | 5,710 | $ | (213 | ) | $ | 6,907 | $ | 12,407 | ||||||||
Stock options exercised | 24 | 600 | 600 | ||||||||||||||||||||
Repurchase of Class B Common Stock | (70 | ) | (254 | ) | (4,013 | ) | (4,267 | ) | |||||||||||||||
Dividends on common stock ($0.78 per share) and preferred stock ($0.10 per share) | (1,265 | ) | (1,265 | ) | |||||||||||||||||||
Issuance of shares to employees, net of shares withheld for employee taxes | 4 | 110 | (28 | ) | 82 | ||||||||||||||||||
Stock-based compensation | 218 | 218 | |||||||||||||||||||||
Net income | 1,933 | 1,933 | |||||||||||||||||||||
Other comprehensive income (loss) | 104 | 104 | |||||||||||||||||||||
Reclassifications to retained earnings in accordance with ASU 2018-02 | 17 | (17 | ) | — | |||||||||||||||||||
Balance at May 31, 2018 | 329 | $ | — | 1,272 | $ | 3 | $ | 6,384 | $ | (92 | ) | $ | 3,517 | $ | 9,812 | ||||||||
Stock options exercised | 18 | 539 | 539 | ||||||||||||||||||||
Conversion to Class B Common Stock | (14 | ) | 14 | — | |||||||||||||||||||
Repurchase of Class B Common Stock | (54 | ) | (227 | ) | (4,056 | ) | (4,283 | ) | |||||||||||||||
Dividends on common stock ($0.86 per share) and preferred stock ($0.10 per share) | (1,360 | ) | (1,360 | ) | |||||||||||||||||||
Issuance of shares to employees, net of shares withheld for employee taxes | 3 | 142 | (3 | ) | 139 | ||||||||||||||||||
Stock-based compensation | 325 | 325 | |||||||||||||||||||||
Net income | 4,029 | 4,029 | |||||||||||||||||||||
Other comprehensive income (loss) | 323 | 323 | |||||||||||||||||||||
Adoption of ASU 2016-16 (Note 1) | (507 | ) | (507 | ) | |||||||||||||||||||
Adoption of ASC Topic 606 (Note 1) | 23 | 23 | |||||||||||||||||||||
Balance at May 31, 2019 | 315 | $ | — | 1,253 | $ | 3 | $ | 7,163 | $ | 231 | $ | 1,643 | $ | 9,040 | |||||||||
Stock options exercised | 20 | 703 | 703 | ||||||||||||||||||||
Repurchase of Class B Common Stock | (34 | ) | (161 | ) | (2,872 | ) | (3,033 | ) | |||||||||||||||
Dividends on common stock ($0.955 per share) and preferred stock ($0.10 per share) | (1,491 | ) | (1,491 | ) | |||||||||||||||||||
Issuance of shares to employees, net of shares withheld for employee taxes | 4 | 165 | (9 | ) | 156 | ||||||||||||||||||
Stock-based compensation | 429 | 429 | |||||||||||||||||||||
Net income | 2,539 | 2,539 | |||||||||||||||||||||
Other comprehensive income (loss) | (287 | ) | (287 | ) | |||||||||||||||||||
Adoption of ASC Topic 842 (Note 1) | (1 | ) | (1 | ) | |||||||||||||||||||
Balance at May 31, 2020 | 315 | $ | — | 1,243 | $ | 3 | $ | 8,299 | $ | (56 | ) | $ | (191 | ) | $ | 8,055 |
COMMON STOCK | CAPITAL IN EXCESS OF STATED VALUE | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | RETAINED EARNINGS (DEFICIT) | TOTAL | |||||||||||||||||||||||||
CLASS A | CLASS B | ||||||||||||||||||||||||||||
(In millions, except per share data) | SHARES | AMOUNT | SHARES | AMOUNT | |||||||||||||||||||||||||
Balance at May 31, 2019 | 315 | $ | — | 1,253 | $ | 3 | $ | 7,163 | $ | 231 | $ | 1,643 | $ | 9,040 | |||||||||||||||
Stock options exercised | 20 | 703 | 703 | ||||||||||||||||||||||||||
Repurchase of Class B Common Stock | (34) | (161) | (2,872) | (3,033) | |||||||||||||||||||||||||
Dividends on common stock ($0.955 per share) and preferred stock ($0.10 per share) | (1,491) | (1,491) | |||||||||||||||||||||||||||
Issuance of shares to employees, net of shares withheld for employee taxes | 4 | 165 | (9) | 156 | |||||||||||||||||||||||||
Stock-based compensation | 429 | 429 | |||||||||||||||||||||||||||
Net income | 2,539 | 2,539 | |||||||||||||||||||||||||||
Other comprehensive income (loss) | (287) | (287) | |||||||||||||||||||||||||||
Adoption of ASC Topic 842 (Note 1) | (1) | (1) | |||||||||||||||||||||||||||
Balance at May 31, 2020 | 315 | $ | — | 1,243 | $ | 3 | $ | 8,299 | $ | (56) | $ | (191) | $ | 8,055 | |||||||||||||||
Stock options exercised | 21 | 954 | 954 | ||||||||||||||||||||||||||
Conversion to Class B Common Stock | (10) | 10 | — | ||||||||||||||||||||||||||
Repurchase of Class B Common Stock | (5) | (28) | (622) | (650) | |||||||||||||||||||||||||
Dividends on common stock ($1.070 per share) and preferred stock ($0.10 per share) | (1,692) | (1,692) | |||||||||||||||||||||||||||
Issuance of shares to employees, net of shares withheld for employee taxes | 4 | 129 | (43) | 86 | |||||||||||||||||||||||||
Stock-based compensation | 611 | 611 | |||||||||||||||||||||||||||
Net income | 5,727 | 5,727 | |||||||||||||||||||||||||||
Other comprehensive income (loss) | (324) | (324) | |||||||||||||||||||||||||||
Balance at May 31, 2021 | 305 | $ | — | 1,273 | $ | 3 | $ | 9,965 | $ | (380) | $ | 3,179 | $ | 12,767 | |||||||||||||||
Stock options exercised | 17 | 924 | 924 | ||||||||||||||||||||||||||
Repurchase of Class B Common Stock | (27) | (186) | (3,808) | (3,994) | |||||||||||||||||||||||||
Dividends on common stock ($1.190 per share) and preferred stock ($0.10 per share) | (1,886) | (1,886) | |||||||||||||||||||||||||||
Issuance of shares to employees, net of shares withheld for employee taxes | 3 | 143 | (55) | 88 | |||||||||||||||||||||||||
Stock-based compensation | 638 | 638 | |||||||||||||||||||||||||||
Net income | 6,046 | 6,046 | |||||||||||||||||||||||||||
Other comprehensive income (loss) | 698 | 698 | |||||||||||||||||||||||||||
Balance at May 31, 2022 | 305 | $ | — | 1,266 | $ | 3 | $ | 11,484 | $ | 318 | $ | 3,476 | $ | 15,281 |
Note 1 | Summary of Significant Accounting Policies | |||||||
Note 2 | Inventories | |||||||
Note 3 | Property, Plant and Equipment | |||||||
Note 4 | Identifiable Intangible Assets and Goodwill | |||||||
Note 5 | Accrued Liabilities | |||||||
Note 6 | Fair Value Measurements | |||||||
Note 7 | Short-Term Borrowings and Credit Lines | |||||||
Note 8 | Long-Term Debt | |||||||
Note 9 | Income Taxes | |||||||
Note 10 | Redeemable Preferred Stock | |||||||
Note 11 | Common Stock and Stock-Based Compensation | |||||||
Note 12 | Earnings Per Share | |||||||
Note 13 | Benefit Plans | |||||||
Note 14 | Risk Management and Derivatives | |||||||
Note 15 | Accumulated Other Comprehensive Income (Loss) | |||||||
Note 16 | Revenues | |||||||
Note 17 | Operating Segments and Related Information | |||||||
Note 18 | Commitments and Contingencies | |||||||
Note 19 | Leases | |||||||
Note 20 | Acquisitions and Divestitures | |||||||
Note 21 |
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
NOTE 2 — INVENTORIES |
NOTE 3 — PROPERTY, PLANT AND EQUIPMENT |
MAY 31, | ||||||
(Dollars in millions) | 2020 | 2019 | ||||
Land and improvements | $ | 345 | $ | 329 | ||
Buildings | 2,442 | 2,445 | ||||
Machinery and equipment | 2,751 | 2,726 | ||||
Internal-use software | 1,483 | 1,609 | ||||
Leasehold improvements | 1,554 | 1,563 | ||||
Construction in process | 1,086 | 797 | ||||
Total property, plant and equipment, gross | 9,661 | 9,469 | ||||
Less accumulated depreciation | 4,795 | 4,725 | ||||
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET | $ | 4,866 | $ | 4,744 |
MAY 31, | ||||||||
(Dollars in millions) | 2022 | 2021 | ||||||
Land and improvements | $ | 330 | $ | 363 | ||||
Buildings | 3,170 | 3,365 | ||||||
Machinery and equipment | 2,870 | 3,023 | ||||||
Internal-use software | 1,616 | 1,391 | ||||||
Leasehold improvements | 1,712 | 1,608 | ||||||
Construction in process | 399 | 311 | ||||||
Total property, plant and equipment, gross | 10,097 | 10,061 | ||||||
Less accumulated depreciation | 5,306 | 5,157 | ||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET | $ | 4,791 | $ | 4,904 |
NOTE 4 — IDENTIFIABLE INTANGIBLE ASSETS AND GOODWILL |
MAY 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
(Dollars in millions) | GROSS CARRYING AMOUNT | ACCUMULATED AMORTIZATION | NET CARRYING AMOUNT | GROSS CARRYING AMOUNT | ACCUMULATED AMORTIZATION | NET CARRYING AMOUNT | |||||||||||||||||
Indefinite-lived trademarks | $ | 259 | $ | — | $ | 259 | $ | 246 | $ | — | $ | 246 | |||||||||||
Acquired trademarks and other | 66 | 39 | 27 | 50 | 27 | 23 | |||||||||||||||||
IDENTIFIABLE INTANGIBLE ASSETS, NET | $ | 325 | $ | 39 | $ | 286 | $ | 296 | $ | 27 | $ | 269 |
MAY 31, | |||||||||||||||||||
2020 | 2019 | ||||||||||||||||||
(Dollars in millions) | GROSS CARRYING AMOUNT | ACCUMULATED AMORTIZATION | NET CARRYING AMOUNT | GROSS CARRYING AMOUNT | ACCUMULATED AMORTIZATION | NET CARRYING AMOUNT | |||||||||||||
Indefinite-lived trademarks | $ | 246 | $ | — | $ | 246 | $ | 281 | $ | — | $ | 281 | |||||||
Acquired trademarks and other | 47 | 19 | 28 | 22 | 20 | 2 | |||||||||||||
IDENTIFIABLE INTANGIBLE ASSETS, NET | $ | 293 | $ | 19 | $ | 274 | $ | 303 | $ | 20 | $ | 283 |
NOTE 5 — ACCRUED LIABILITIES |
MAY 31, | ||||||||
(Dollars in millions) | 2022 | 2021 | ||||||
Compensation and benefits, excluding taxes | $ | 1,297 | $ | 1,472 | ||||
Sales-related reserves | 1,015 | 1,077 | ||||||
Allowance for expected loss on sale(1) | 397 | 358 | ||||||
Other | 3,511 | 3,156 | ||||||
TOTAL ACCRUED LIABILITIES | $ | 6,220 | $ | 6,063 |
MAY 31, | ||||||
(Dollars in millions) | 2020 | 2019 | ||||
Compensation and benefits, excluding taxes | $ | 1,248 | $ | 1,232 | ||
Sales-related reserves | 1,178 | 1,218 | ||||
Allowance for cumulative foreign currency translation losses(1) | 405 | — | ||||
Endorsement compensation | 393 | 424 | ||||
Dividends payable | 384 | 346 | ||||
Import and logistics costs | 273 | 296 | ||||
Taxes other than income taxes payable | 202 | 234 | ||||
Fair value of derivatives | 190 | 52 | ||||
Liabilities held-for-sale(1) | 146 | — | ||||
Advertising and marketing | 97 | 114 | ||||
Collateral received from counterparties to hedging instruments | — | 289 | ||||
Other(2) | 668 | 805 | ||||
TOTAL ACCRUED LIABILITIES | $ | 5,184 | $ | 5,010 |
NOTE 6 — FAIR VALUE MEASUREMENTS |
MAY 31, 2020 | |||||||||
(Dollars in millions) | ASSETS AT FAIR VALUE | CASH AND EQUIVALENTS | SHORT-TERM INVESTMENTS | ||||||
Cash | $ | 596 | $ | 596 | $ | — | |||
Level 1: | |||||||||
U.S. Treasury securities | 1,204 | 800 | 404 | ||||||
Level 2: | |||||||||
Commercial paper and bonds | 32 | — | 32 | ||||||
Money market funds | 5,973 | 5,973 | — | ||||||
Time deposits | 981 | 979 | 2 | ||||||
U.S. Agency securities | 1 | — | 1 | ||||||
Total Level 2 | 6,987 | 6,952 | 35 | ||||||
TOTAL | $ | 8,787 | $ | 8,348 | $ | 439 |
MAY 31, 2022 | |||||||||||
(Dollars in millions) | ASSETS AT FAIR VALUE | CASH AND EQUIVALENTS | SHORT-TERM INVESTMENTS | ||||||||
Cash | $ | 839 | $ | 839 | $ | — | |||||
Level 1: | |||||||||||
U.S. Treasury securities | 3,801 | 8 | 3,793 | ||||||||
Level 2: | |||||||||||
Commercial paper and bonds | 660 | 37 | 623 | ||||||||
Money market funds | 6,458 | 6,458 | — | ||||||||
Time deposits | 1,237 | 1,232 | 5 | ||||||||
U.S. Agency securities | 2 | — | 2 | ||||||||
Total Level 2 | 8,357 | 7,727 | 630 | ||||||||
TOTAL | $ | 12,997 | $ | 8,574 | $ | 4,423 |
MAY 31, 2021 | |||||||||||
(Dollars in millions) | ASSETS AT FAIR VALUE | CASH AND EQUIVALENTS | SHORT-TERM INVESTMENTS | ||||||||
Cash | $ | 840 | $ | 840 | $ | — | |||||
Level 1: | |||||||||||
U.S. Treasury securities | 2,892 | — | 2,892 | ||||||||
Level 2: | |||||||||||
Commercial paper and bonds | 748 | 57 | 691 | ||||||||
Money market funds | 7,701 | 7,701 | — | ||||||||
Time deposits | 1,293 | 1,291 | 2 | ||||||||
U.S. Agency securities | 2 | — | 2 | ||||||||
Total Level 2 | 9,744 | 9,049 | 695 | ||||||||
TOTAL | $ | 13,476 | $ | 9,889 | $ | 3,587 |
MAY 31, 2019 | |||||||||
(Dollars in millions) | ASSETS AT FAIR VALUE | CASH AND EQUIVALENTS | SHORT-TERM INVESTMENTS | ||||||
Cash | $ | 853 | $ | 853 | $ | — | |||
Level 1: | |||||||||
U.S. Treasury securities | 347 | 200 | 147 | ||||||
Level 2: | |||||||||
Commercial paper and bonds | 34 | 1 | 33 | ||||||
Money market funds | 1,637 | 1,637 | — | ||||||
Time deposits | 1,791 | 1,775 | 16 | ||||||
U.S. Agency securities | 1 | — | 1 | ||||||
Total Level 2 | 3,463 | 3,413 | 50 | ||||||
TOTAL | $ | 4,663 | $ | 4,466 | $ | 197 |
MAY 31, 2020 | |||||||||||||||||||
DERIVATIVE ASSETS | DERIVATIVE LIABILITIES | ||||||||||||||||||
(Dollars in millions) | ASSETS AT FAIR VALUE | OTHER CURRENT ASSETS | OTHER LONG-TERM ASSETS | LIABILITIES AT FAIR VALUE | ACCRUED LIABILITIES | OTHER LONG-TERM LIABILITIES | |||||||||||||
Level 2: | |||||||||||||||||||
Foreign exchange forwards and options(1) | $ | 94 | $ | 91 | $ | 3 | $ | 205 | $ | 188 | $ | 17 | |||||||
Embedded derivatives | 1 | 1 | — | 2 | 2 | — | |||||||||||||
TOTAL | $ | 95 | $ | 92 | $ | 3 | $ | 207 | $ | 190 | $ | 17 |
MAY 31, 2022 | |||||||||||||||||||||||
DERIVATIVE ASSETS | DERIVATIVE LIABILITIES | ||||||||||||||||||||||
(Dollars in millions) | ASSETS AT FAIR VALUE | OTHER CURRENT ASSETS | OTHER LONG-TERM ASSETS | LIABILITIES AT FAIR VALUE | ACCRUED LIABILITIES | OTHER LONG-TERM LIABILITIES | |||||||||||||||||
Level 2: | |||||||||||||||||||||||
Foreign exchange forwards and options(1) | $ | 875 | $ | 669 | $ | 206 | $ | 76 | $ | 65 | $ | 11 | |||||||||||
Embedded derivatives | 5 | 5 | — | 1 | 1 | — | |||||||||||||||||
TOTAL | $ | 880 | $ | 674 | $ | 206 | $ | 77 | $ | 66 | $ | 11 |
MAY 31, 2019 | |||||||||||||||||||
DERIVATIVE ASSETS | DERIVATIVE LIABILITIES | ||||||||||||||||||
(Dollars in millions) | ASSETS AT FAIR VALUE | OTHER CURRENT ASSETS | OTHER LONG-TERM ASSETS | LIABILITIES AT FAIR VALUE | ACCRUED LIABILITIES | OTHER LONG-TERM LIABILITIES | |||||||||||||
Level 2: | |||||||||||||||||||
Foreign exchange forwards and options(1) | $ | 611 | $ | 611 | $ | — | $ | 51 | $ | 51 | $ | — | |||||||
Embedded derivatives | 11 | 5 | 6 | 3 | 1 | 2 | |||||||||||||
TOTAL | $ | 622 | $ | 616 | $ | 6 | $ | 54 | $ | 52 | $ | 2 |
MAY 31, 2021 | |||||||||||||||||||||||
DERIVATIVE ASSETS | DERIVATIVE LIABILITIES | ||||||||||||||||||||||
(Dollars in millions) | ASSETS AT FAIR VALUE | OTHER CURRENT ASSETS | OTHER LONG-TERM ASSETS | LIABILITIES AT FAIR VALUE | ACCRUED LIABILITIES | OTHER LONG-TERM LIABILITIES | |||||||||||||||||
Level 2: | |||||||||||||||||||||||
Foreign exchange forwards and options(1) | $ | 92 | $ | 76 | $ | 16 | $ | 456 | $ | 415 | $ | 41 | |||||||||||
Embedded derivatives | — | — | — | 1 | 1 | — | |||||||||||||||||
TOTAL | $ | 92 | $ | 76 | $ | 16 | $ | 457 | $ | 416 | $ | 41 |
NOTE 7 — SHORT-TERM BORROWINGS AND CREDIT LINES |
MAY 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
(Dollars in millions) | BORROWINGS | INTEREST RATE | BORROWINGS | INTEREST RATE | |||||||||||||||||||
Notes payable: | |||||||||||||||||||||||
U.S. operations | $ | — | 0.00 | % | — | 0.00 | % | ||||||||||||||||
Non-U.S. operations | $ | 10 | 19.80 | % | (1) | $ | 2 | 17.80 | % | (1) | |||||||||||||
TOTAL NOTES PAYABLE | $ | 10 | $ | 2 |
MAY 31, | |||||||||||||
2020 | 2019 | ||||||||||||
(Dollars in millions) | BORROWINGS | INTEREST RATE | BORROWINGS | INTEREST RATE | |||||||||
Notes payable: | |||||||||||||
Commercial paper(1) | $ | 248 | 1.65 | % | $ | — | 0.00 | % | |||||
U.S. operations | — | 0.00 | % | 2 | 0.00 | % | (2) | ||||||
Non-U.S. operations | — | 0.00 | % | 7 | 26.00 | % | (2) | ||||||
TOTAL NOTES PAYABLE | $ | 248 | $ | 9 |
NOTE 8 — LONG-TERM DEBT |
BOOK VALUE OUTSTANDING AS OF MAY 31, | |||||||||||||||||
Scheduled Maturity (Dollars in millions) | ORIGINAL PRINCIPAL | INTEREST RATE | INTEREST PAYMENTS | 2022 | 2021 | ||||||||||||
Corporate Term Debt:(1)(2) | |||||||||||||||||
May 1, 2023 | $ | 500 | 2.25 | % | Semi-Annually | $ | 500 | $ | 499 | ||||||||
March 27, 2025 | 1,000 | 2.40 | % | Semi-Annually | 996 | 995 | |||||||||||
November 1, 2026 | 1,000 | 2.38 | % | Semi-Annually | 997 | 996 | |||||||||||
March 27, 2027 | 1,000 | 2.75 | % | Semi-Annually | 996 | 995 | |||||||||||
March 27, 2030 | 1,500 | 2.85 | % | Semi-Annually | 1,491 | 1,490 | |||||||||||
March 27, 2040 | 1,000 | 3.25 | % | Semi-Annually | 986 | 986 | |||||||||||
May 1, 2043 | 500 | 3.63 | % | Semi-Annually | 496 | 496 | |||||||||||
November 1, 2045 | 1,000 | 3.88 | % | Semi-Annually | 985 | 984 | |||||||||||
November 1, 2046 | 500 | 3.38 | % | Semi-Annually | 492 | 491 | |||||||||||
March 27, 2050 | 1,500 | 3.38 | % | Semi-Annually | 1,481 | 1,481 | |||||||||||
Total | 9,420 | 9,413 | |||||||||||||||
Less Current Portion of Long-Term Debt | 500 | — | |||||||||||||||
TOTAL LONG-TERM DEBT | $ | 8,920 | $ | 9,413 |
BOOK VALUE OUTSTANDING AS OF MAY 31, | ||||||||||||
Scheduled Maturity (Dollars and Yen in millions) | ORIGINAL PRINCIPAL | INTEREST RATE | INTEREST PAYMENTS | 2020 | 2019 | |||||||
Corporate Term Debt:(1)(2) | ||||||||||||
May 1, 2023 | $ | 500 | 2.25 | % | Semi-Annually | $ | 499 | $ | 498 | |||
March 27, 2025 | 1,000 | 2.40 | % | Semi-Annually | 994 | — | ||||||
November 1, 2026 | 1,000 | 2.38 | % | Semi-Annually | 995 | 994 | ||||||
March 27, 2027 | 1,000 | 2.75 | % | Semi-Annually | 994 | — | ||||||
March 27, 2030 | 1,500 | 2.85 | % | Semi-Annually | 1,489 | — | ||||||
March 27, 2040 | 1,000 | 3.25 | % | Semi-Annually | 985 | — | ||||||
May 1, 2043 | 500 | 3.63 | % | Semi-Annually | 495 | 495 | ||||||
November 1, 2045 | 1,000 | 3.88 | % | Semi-Annually | 984 | 983 | ||||||
November 1, 2046 | 500 | 3.38 | % | Semi-Annually | 491 | 491 | ||||||
March 27, 2050 | 1,500 | 3.38 | % | Semi-Annually | 1,480 | — | ||||||
Japanese Yen Notes:(3) | ||||||||||||
August 20, 2001 through November 20, 2020 | ¥ | 9,000 | 2.60 | % | Quarterly | $ | 2 | $ | 6 | |||
August 20, 2001 through November 20, 2020 | 4,000 | 2.00 | % | Quarterly | 1 | 3 | ||||||
Total | 9,409 | 3,470 | ||||||||||
Less current maturities | 3 | 6 | ||||||||||
TOTAL LONG-TERM DEBT | $ | 9,406 | $ | 3,464 |
NOTE 9 — INCOME TAXES |
YEAR ENDED MAY 31, | |||||||||
(Dollars in millions) | 2020 | 2019 | 2018 | ||||||
Income before income taxes: | |||||||||
United States | $ | 2,954 | $ | 593 | $ | 744 | |||
Foreign | (67 | ) | 4,208 | 3,581 | |||||
TOTAL INCOME BEFORE INCOME TAXES | $ | 2,887 | $ | 4,801 | $ | 4,325 |
YEAR ENDED MAY 31, | |||||||||||
(Dollars in millions) | 2022 | 2021 | 2020 | ||||||||
Income before income taxes: | |||||||||||
United States | $ | 6,020 | $ | 5,723 | $ | 2,954 | |||||
Foreign | 631 | 938 | (67) | ||||||||
TOTAL INCOME BEFORE INCOME TAXES | $ | 6,651 | $ | 6,661 | $ | 2,887 |
YEAR ENDED MAY 31, | |||||||||
(Dollars in millions) | 2020 | 2019 | 2018 | ||||||
Current: | |||||||||
United States | |||||||||
Federal | $ | (109 | ) | $ | 74 | $ | 1,167 | ||
State | 81 | 56 | 45 | ||||||
Foreign | 756 | 608 | 533 | ||||||
Total Current | 728 | 738 | 1,745 | ||||||
Deferred: | |||||||||
United States | |||||||||
Federal | (231 | ) | (33 | ) | 595 | ||||
State | (47 | ) | (9 | ) | 25 | ||||
Foreign | (102 | ) | 76 | 27 | |||||
Total Deferred | (380 | ) | 34 | 647 | |||||
TOTAL INCOME TAX EXPENSE | $ | 348 | $ | 772 | $ | 2,392 |
YEAR ENDED MAY 31, | |||||||||||
(Dollars in millions) | 2022 | 2021 | 2020 | ||||||||
Current: | |||||||||||
United States | |||||||||||
Federal | $ | 231 | $ | 328 | $ | (109) | |||||
State | 98 | 134 | 81 | ||||||||
Foreign | 926 | 857 | 756 | ||||||||
Total Current | 1,255 | 1,319 | 728 | ||||||||
Deferred: | |||||||||||
United States | |||||||||||
Federal | (522) | (371) | (231) | ||||||||
State | (16) | (34) | (47) | ||||||||
Foreign | (112) | 20 | (102) | ||||||||
Total Deferred | (650) | (385) | (380) | ||||||||
TOTAL INCOME TAX EXPENSE | $ | 605 | $ | 934 | $ | 348 |
YEAR ENDED MAY 31, | |||||||||||
2022 | 2021 | 2020 | |||||||||
Federal income tax rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||
State taxes, net of federal benefit | 1.4 | % | 1.3 | % | 0.8 | % | |||||
Foreign earnings | -1.8 | % | 0.2 | % | 5.9 | % | |||||
Subpart F deferred tax benefit | -4.7 | % | 0.0 | % | 0.0 | % | |||||
Foreign-derived intangible income benefit | -4.1 | % | -3.7 | % | -8.1 | % | |||||
Excess tax benefits from share-based compensation | -4.9 | % | -4.5 | % | -7.2 | % | |||||
Income tax audits and contingency reserves | 1.5 | % | 1.5 | % | -1.4 | % | |||||
U.S. research and development tax credit | -1.0 | % | -0.9 | % | -1.8 | % | |||||
Other, net | 1.7 | % | -0.9 | % | 2.9 | % | |||||
EFFECTIVE INCOME TAX RATE | 9.1 | % | 14.0 | % | 12.1 | % |
YEAR ENDED MAY 31, | ||||||
2020 | 2019 | 2018 | ||||
Federal income tax rate | 21.0 | % | 21.0 | % | 29.2 | % |
State taxes, net of federal benefit | 0.8 | % | 1.0 | % | 0.8 | % |
Foreign earnings | 5.9 | % | -1.1 | % | -19.2 | % |
Foreign-derived intangible income benefit related to the Tax Act | -8.1 | % | — | % | — | % |
Transition tax related to the Tax Act | — | % | — | % | 43.3 | % |
Remeasurement of deferred tax assets and liabilities related to the Tax Act | — | % | — | % | 3.7 | % |
Excess tax benefits from share-based compensation | -7.2 | % | -3.6 | % | -5.3 | % |
Income tax audits and contingency reserves | -1.4 | % | 1.3 | % | 2.9 | % |
U.S. research and development tax credit | -1.8 | % | -1.0 | % | -0.6 | % |
Other, net | 2.9 | % | -1.5 | % | 0.5 | % |
EFFECTIVE INCOME TAX RATE | 12.1 | % | 16.1 | % | 55.3 | % |
MAY 31, | ||||||
(Dollars in millions) | 2020 | 2019 | ||||
Deferred tax assets: | ||||||
Inventories | $ | 84 | $ | 66 | ||
Sales return reserves | 115 | 128 | ||||
Deferred compensation | 295 | 271 | ||||
Stock-based compensation | 168 | 156 | ||||
Reserves and accrued liabilities | 120 | 101 | ||||
Operating lease liabilities | 491 | — | ||||
Capitalized research and development expenditures | 189 | — | ||||
Net operating loss carry-forwards | 21 | 81 | ||||
Other | 127 | 125 | ||||
Total deferred tax assets | 1,610 | 928 | ||||
Valuation allowance | (26 | ) | (88 | ) | ||
Total deferred tax assets after valuation allowance | 1,584 | 840 | ||||
Deferred tax liabilities: | ||||||
Foreign withholding tax on undistributed earnings of foreign subsidiaries | (165 | ) | (235 | ) | ||
Property, plant and equipment | (232 | ) | (188 | ) | ||
Right-of-use assets | (423 | ) | — | |||
Other | (32 | ) | (41 | ) | ||
Total deferred tax liabilities | (852 | ) | (464 | ) | ||
NET DEFERRED TAX ASSET | $ | 732 | $ | 376 |
MAY 31, | ||||||||
(Dollars in millions) | 2022 | 2021 | ||||||
Deferred tax assets: | ||||||||
Inventories(1) | $ | 136 | $ | 78 | ||||
Sales return reserves(1) | 109 | 100 | ||||||
Deferred compensation(1) | 313 | 350 | ||||||
Stock-based compensation | 195 | 175 | ||||||
Reserves and accrued liabilities(1) | 145 | 96 | ||||||
Operating lease liabilities | 508 | 499 | ||||||
Intangibles | 275 | 187 | ||||||
Capitalized research and development expenditures | 353 | 349 | ||||||
Net operating loss carry-forwards | 8 | 15 | ||||||
Subpart F deferred tax | 313 | — | ||||||
Foreign tax credit carry-forward | 103 | — | ||||||
Other(1) | 148 | 178 | ||||||
Total deferred tax assets | 2,606 | 2,027 | ||||||
Valuation allowance | (19) | (12) | ||||||
Total deferred tax assets after valuation allowance | 2,587 | 2,015 | ||||||
Deferred tax liabilities: | ||||||||
Foreign withholding tax on undistributed earnings of foreign subsidiaries | (146) | (182) | ||||||
Property, plant and equipment(1) | (247) | (255) | ||||||
Right-of-use assets | (437) | (431) | ||||||
Other(1) | (92) | (14) | ||||||
Total deferred tax liabilities | (922) | (882) | ||||||
NET DEFERRED TAX ASSET | $ | 1,665 | $ | 1,133 |
MAY 31, | |||||||||
(Dollars in millions) | 2020 | 2019 | 2018 | ||||||
Unrecognized tax benefits, beginning of the period | $ | 808 | $ | 698 | $ | 461 | |||
Gross increases related to prior period tax positions | 181 | 85 | 19 | ||||||
Gross decreases related to prior period tax positions | (171 | ) | (32 | ) | (12 | ) | |||
Gross increases related to current period tax positions | 50 | 81 | 249 | ||||||
Settlements | (58 | ) | — | — | |||||
Lapse of statute of limitations | (28 | ) | (35 | ) | (20 | ) | |||
Changes due to currency translation | (11 | ) | 11 | 1 | |||||
UNRECOGNIZED TAX BENEFITS, END OF THE PERIOD | $ | 771 | $ | 808 | $ | 698 |
MAY 31, | |||||||||||
(Dollars in millions) | 2022 | 2021 | 2020 | ||||||||
Unrecognized tax benefits, beginning of the period | $ | 896 | $ | 771 | $ | 808 | |||||
Gross increases related to prior period tax positions | 71 | 77 | 181 | ||||||||
Gross decreases related to prior period tax positions | (145) | (22) | (171) | ||||||||
Gross increases related to current period tax positions | 62 | 59 | 50 | ||||||||
Settlements | (17) | (5) | (58) | ||||||||
Lapse of statute of limitations | (10) | (6) | (28) | ||||||||
Changes due to currency translation | (9) | 22 | (11) | ||||||||
UNRECOGNIZED TAX BENEFITS, END OF THE PERIOD | $ | 848 | $ | 896 | $ | 771 |
YEAR ENDING MAY 31, | |||||||||||||||||||||||
(Dollars in millions) | 2023 | 2024 | 2025 | 2026 | 2027-2042 | INDEFINITE | TOTAL | ||||||||||||||||
Net operating losses | $ | — | $ | — | $ | — | $ | — | $ | 7 | $ | 37 | $ | 44 |
YEAR ENDING MAY 31, | |||||||||||||||||||||
(Dollars in millions) | 2021 | 2022 | 2023 | 2024 | 2025-2040 | INDEFINITE | TOTAL | ||||||||||||||
Net operating losses | $ | — | $ | 3 | $ | 2 | $ | 2 | $ | 59 | $ | 17 | $ | 83 |
NOTE 10 — REDEEMABLE PREFERRED STOCK |
NOTE 11 — COMMON STOCK AND STOCK-BASED COMPENSATION |
YEAR ENDED MAY 31, | |||||||||||
(Dollars in millions) | 2022 | 2021 | 2020 | ||||||||
Stock options(1) | $ | 297 | $ | 323 | $ | 237 | |||||
ESPPs | 60 | 63 | 53 | ||||||||
Restricted stock and restricted stock units(1)(2) | 281 | 225 | 139 | ||||||||
TOTAL STOCK-BASED COMPENSATION EXPENSE | $ | 638 | $ | 611 | $ | 429 |
YEAR ENDED MAY 31, | |||||||||
(Dollars in millions) | 2020 | 2019 | 2018 | ||||||
Stock options(1) | $ | 237 | $ | 207 | $ | 149 | |||
ESPPs | 53 | 40 | 34 | ||||||
Restricted stock | 139 | 78 | 35 | ||||||
TOTAL STOCK-BASED COMPENSATION EXPENSE | $ | 429 | $ | 325 | $ | 218 |
YEAR ENDED MAY 31, | ||||||
2020 | 2019 | 2018 | ||||
Dividend yield | 1.0 | % | 1.0 | % | 1.2 | % |
Expected volatility | 23.0 | % | 26.6 | % | 16.4 | % |
Weighted average expected life (in years) | 6.0 | 6.0 | 6.0 | |||
Risk-free interest rate | 1.5 | % | 2.8 | % | 2.0 | % |
YEAR ENDED MAY 31, | |||||||||||
2022 | 2021 | 2020 | |||||||||
Dividend yield | 0.8 | % | 0.9 | % | 1.0 | % | |||||
Expected volatility | 24.9 | % | 27.3 | % | 23.0 | % | |||||
Weighted average expected life (in years) | 5.8 | 6.0 | 6.0 | ||||||||
Risk-free interest rate | 0.9 | % | 0.4 | % | 1.5 | % |
SHARES(1) | WEIGHTED AVERAGE OPTION PRICE | |||||||
(In millions) | ||||||||
Options outstanding as of May 31, 2021 | 78.3 | $ | 72.88 | |||||
Exercised | (17.1) | 54.32 | ||||||
Forfeited | (2.5) | 114.89 | ||||||
Granted | 9.3 | 164.91 | ||||||
Options outstanding as of May 31, 2022 | 68.0 | $ | 88.66 |
SHARES(1) | WEIGHTED AVERAGE OPTION PRICE | ||||
(In millions) | |||||
Options outstanding as of May 31, 2019 | 91.3 | $ | 50.59 | ||
Exercised | (20.1 | ) | 35.26 | ||
Forfeited | (2.2 | ) | 75.74 | ||
Granted | 19.1 | 85.29 | |||
Options outstanding as of May 31, 2020 | 88.1 | $ | 60.98 |
SHARES | WEIGHTED AVERAGE GRANT DATE FAIR VALUE | ||||||||||
(In millions) | |||||||||||
Nonvested as of May 31, 2021 | 6.6 | $ | 99.70 | ||||||||
Vested | (2.3) | 93.70 | |||||||||
Forfeited | (0.7) | 123.54 | |||||||||
Granted(1) | 3.1 | 168.04 | |||||||||
Nonvested as of May 31, 2022 | 6.7 | $ | 130.88 |
SHARES | WEIGHTED AVERAGE GRANT DATE FAIR VALUE | |||||
(In millions) | ||||||
Nonvested as of May 31, 2019 | 4.4 | $ | 70.93 | |||
Vested | (1.1 | ) | 72.64 | |||
Forfeited | (0.3 | ) | 79.62 | |||
Granted | 3.8 | 88.26 | ||||
Nonvested as of May 31, 2020 | 6.8 | $ | 79.84 |
NOTE 12 — EARNINGS PER SHARE |
YEAR ENDED MAY 31, | |||||||||||
(In millions, except per share data) | 2022 | 2021 | 2020 | ||||||||
Net income available to common stockholders | $ | 6,046 | $ | 5,727 | $ | 2,539 | |||||
Determination of shares: | |||||||||||
Weighted average common shares outstanding | 1,578.8 | 1,573.0 | 1,558.8 | ||||||||
Assumed conversion of dilutive stock options and awards | 32.0 | 36.4 | 32.8 | ||||||||
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | 1,610.8 | 1,609.4 | 1,591.6 | ||||||||
Earnings per common share: | |||||||||||
Basic | $ | 3.83 | $ | 3.64 | $ | 1.63 | |||||
Diluted | $ | 3.75 | $ | 3.56 | $ | 1.60 |
YEAR ENDED MAY 31, | |||||||||
(In millions, except per share data) | 2020 | 2019 | 2018 | ||||||
Net income available to common stockholders | $ | 2,539 | $ | 4,029 | $ | 1,933 | |||
Determination of shares: | |||||||||
Weighted average common shares outstanding | 1,558.8 | 1,579.7 | 1,623.8 | ||||||
Assumed conversion of dilutive stock options and awards | 32.8 | 38.7 | 35.3 | ||||||
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | 1,591.6 | 1,618.4 | 1,659.1 | ||||||
Earnings per common share: | |||||||||
Basic | $ | 1.63 | $ | 2.55 | $ | 1.19 | |||
Diluted | $ | 1.60 | $ | 2.49 | $ | 1.17 |
NOTE 13 — BENEFIT PLANS |
NOTE 14 — RISK MANAGEMENT AND DERIVATIVES |
DERIVATIVE ASSETS | ||||||||||||||
BALANCE SHEET LOCATION | MAY 31, | |||||||||||||
(Dollars in millions) | 2022 | 2021 | ||||||||||||
Derivatives formally designated as hedging instruments: | ||||||||||||||
Foreign exchange forwards and options | Prepaid expenses and other current assets | $ | 639 | $ | 42 | |||||||||
Foreign exchange forwards and options | Deferred income taxes and other assets | 206 | 16 | |||||||||||
Total derivatives formally designated as hedging instruments | 845 | 58 | ||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||
Foreign exchange forwards and options | Prepaid expenses and other current assets | 30 | 34 | |||||||||||
Embedded derivatives | Prepaid expenses and other current assets | 5 | — | |||||||||||
Total derivatives not designated as hedging instruments | 35 | 34 | ||||||||||||
TOTAL DERIVATIVE ASSETS | $ | 880 | $ | 92 |
DERIVATIVE ASSETS | ||||||||
BALANCE SHEET LOCATION | MAY 31, | |||||||
(Dollars in millions) | 2020 | 2019 | ||||||
Derivatives formally designated as hedging instruments: | ||||||||
Foreign exchange forwards and options | Prepaid expenses and other current assets | $ | 43 | $ | 509 | |||
Foreign exchange forwards and options | Deferred income taxes and other assets | 1 | — | |||||
Total derivatives formally designated as hedging instruments | 44 | 509 | ||||||
Derivatives not designated as hedging instruments: | ||||||||
Foreign exchange forwards and options | Prepaid expenses and other current assets | 48 | 102 | |||||
Embedded derivatives | Prepaid expenses and other current assets | 1 | 5 | |||||
Foreign exchange forwards and options | Deferred income taxes and other assets | 2 | — | |||||
Embedded derivatives | Deferred income taxes and other assets | — | 6 | |||||
Total derivatives not designated as hedging instruments | 51 | 113 | ||||||
TOTAL DERIVATIVE ASSETS | $ | 95 | $ | 622 |
DERIVATIVE LIABILITIES | ||||||||
BALANCE SHEET LOCATION | MAY 31, | |||||||
(Dollars in millions) | 2020 | 2019 | ||||||
Derivatives formally designated as hedging instruments: | ||||||||
Foreign exchange forwards and options | Accrued liabilities | $ | 173 | $ | 5 | |||
Foreign exchange forwards and options | Deferred income taxes and other liabilities | 17 | — | |||||
Total derivatives formally designated as hedging instruments | 190 | 5 | ||||||
Derivatives not designated as hedging instruments: | ||||||||
Foreign exchange forwards and options | Accrued liabilities | 15 | 46 | |||||
Embedded derivatives | Accrued liabilities | 2 | 1 | |||||
Embedded derivatives | Deferred income taxes and other liabilities | — | 2 | |||||
Total derivatives not designated as hedging instruments | 17 | 49 | ||||||
TOTAL DERIVATIVE LIABILITIES | $ | 207 | $ | 54 |
DERIVATIVE LIABILITIES | ||||||||||||||
BALANCE SHEET LOCATION | MAY 31, | |||||||||||||
(Dollars in millions) | 2022 | 2021 | ||||||||||||
Derivatives formally designated as hedging instruments: | ||||||||||||||
Foreign exchange forwards and options | Accrued liabilities | $ | 37 | $ | 385 | |||||||||
Foreign exchange forwards and options | Deferred income taxes and other liabilities | 11 | 41 | |||||||||||
Total derivatives formally designated as hedging instruments | 48 | 426 | ||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||
Foreign exchange forwards and options | Accrued liabilities | 28 | 30 | |||||||||||
Embedded derivatives | Accrued liabilities | 1 | 1 | |||||||||||
Total derivatives not designated as hedging instruments | 29 | 31 | ||||||||||||
TOTAL DERIVATIVE LIABILITIES | $ | 77 | $ | 457 |
YEAR ENDED MAY 31, | ||||||||||||||||||||||||||
2022 | 2021 | 2020 | ||||||||||||||||||||||||
(Dollars in millions) | TOTAL | AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY | TOTAL | AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY | TOTAL | AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY | ||||||||||||||||||||
Revenues | $ | 46,710 | $ | (82) | $ | 44,538 | $ | 45 | $ | 37,403 | $ | (17) | ||||||||||||||
Cost of sales | 25,231 | (23) | 24,576 | 51 | 21,162 | 364 | ||||||||||||||||||||
Demand creation expense | 3,850 | 1 | 3,114 | 3 | 3,592 | (2) | ||||||||||||||||||||
Other (income) expense, net | (181) | 130 | 14 | (47) | 139 | 181 | ||||||||||||||||||||
Interest expense (income), net | 205 | (7) | 262 | (7) | 89 | (7) |
YEAR ENDED MAY 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
(Dollars in millions) | TOTAL | AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY | TOTAL | AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY | TOTAL | AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY | ||||||||||||||
Revenues | $ | 37,403 | $ | (17 | ) | $ | 39,117 | $ | (5 | ) | $ | 36,397 | $ | 34 | ||||||
Cost of sales | 21,162 | 364 | 21,643 | 53 | 20,441 | (90 | ) | |||||||||||||
Demand creation expense | 3,592 | (2 | ) | 3,753 | — | 3,577 | 1 | |||||||||||||
Other (income) expense, net | 139 | 181 | (78 | ) | 35 | 66 | (69 | ) | ||||||||||||
Interest expense (income), net | 89 | (7 | ) | 49 | (7 | ) | 54 | (7 | ) |
(Dollars in millions) | AMOUNT OF GAIN (LOSS) RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) ON DERIVATIVES(1) | AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME(1) | |||||||||||||||||||||||||||
YEAR ENDED MAY 31, | LOCATION OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME | YEAR ENDED MAY 31, | |||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2022 | 2021 | 2020 | ||||||||||||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||||||||||||||
Foreign exchange forwards and options | $ | (39) | $ | (61) | $ | 28 | Revenues | $ | (82) | $ | 45 | $ | (17) | ||||||||||||||||
Foreign exchange forwards and options | 889 | (563) | 283 | Cost of sales | (23) | 51 | 364 | ||||||||||||||||||||||
Foreign exchange forwards and options | (6) | 5 | 1 | Demand creation expense | 1 | 3 | (2) | ||||||||||||||||||||||
Foreign exchange forwards and options | 492 | (163) | 90 | Other (income) expense, net | 130 | (47) | 181 | ||||||||||||||||||||||
Interest rate swaps(2) | — | — | — | Interest expense (income), net | (7) | (7) | (7) | ||||||||||||||||||||||
Total designated cash flow hedges | $ | 1,336 | $ | (782) | $ | 402 | $ | 19 | $ | 45 | $ | 519 |
(Dollars in millions) | AMOUNT OF GAIN (LOSS) RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) ON DERIVATIVES(1) | AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME(1) | |||||||||||||||||||
YEAR ENDED MAY 31, | LOCATION OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME | YEAR ENDED MAY 31, | |||||||||||||||||||
2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||||||
Foreign exchange forwards and options | $ | 28 | $ | 14 | $ | 19 | Revenues | $ | (17 | ) | $ | (5 | ) | $ | 34 | ||||||
Foreign exchange forwards and options | 283 | 405 | (50 | ) | Cost of sales | 364 | 53 | (90 | ) | ||||||||||||
Foreign exchange forwards and options | 1 | 2 | 1 | Demand creation expense | (2 | ) | — | 1 | |||||||||||||
Foreign exchange forwards and options | 90 | 156 | (19 | ) | Other (income) expense, net | 181 | 35 | (69 | ) | ||||||||||||
Interest rate swaps(2) | — | — | — | Interest expense (income), net | (7 | ) | (7 | ) | (7 | ) | |||||||||||
Total designated cash flow hedges | $ | 402 | $ | 577 | $ | (49 | ) | $ | 519 | $ | 76 | $ | (131 | ) |
AMOUNT OF GAIN (LOSS) RECOGNIZED IN INCOME ON DERIVATIVES | LOCATION OF GAIN (LOSS) RECOGNIZED IN INCOME ON DERIVATIVES | ||||||||||
YEAR ENDED MAY 31, | |||||||||||
(Dollars in millions) | 2020 | 2019 | 2018 | ||||||||
Derivatives not designated as hedging instruments: | |||||||||||
Foreign exchange forwards and options | $ | 76 | $ | 166 | $ | (57 | ) | Other (income) expense, net | |||
Embedded derivatives | (1 | ) | 7 | (4 | ) | Other (income) expense, net |
AMOUNT OF GAIN (LOSS) RECOGNIZED IN INCOME ON DERIVATIVES | LOCATION OF GAIN (LOSS) RECOGNIZED IN INCOME ON DERIVATIVES | ||||||||||||||||
YEAR ENDED MAY 31, | |||||||||||||||||
(Dollars in millions) | 2022 | 2021 | 2020 | ||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Foreign exchange forwards and options | $ | 40 | $ | (150) | $ | 76 | Other (income) expense, net | ||||||||||
Embedded derivatives | (2) | (17) | (1) | Other (income) expense, net |
NOTE 15 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
(Dollars in millions) | FOREIGN CURRENCY TRANSLATION ADJUSTMENT(1) | CASH FLOW HEDGES | NET INVESTMENT HEDGES(1) | OTHER | TOTAL | ||||||||||||
Balance at May 31, 2021 | $ | 2 | $ | (435) | $ | 115 | $ | (62) | $ | (380) | |||||||
Other comprehensive income (loss): | |||||||||||||||||
Other comprehensive gains (losses) before reclassifications(2) | (522) | 1,222 | — | 28 | 728 | ||||||||||||
Reclassifications to net income of previously deferred (gains) losses(3) | — | (8) | — | (22) | (30) | ||||||||||||
Total other comprehensive income (loss) | (522) | 1,214 | — | 6 | 698 | ||||||||||||
Balance at May 31, 2022 | $ | (520) | $ | 779 | $ | 115 | $ | (56) | $ | 318 |
(Dollars in millions) | FOREIGN CURRENCY TRANSLATION ADJUSTMENT(1) | CASH FLOW HEDGES | NET INVESTMENT HEDGES(1) | OTHER | TOTAL | ||||||||||||
Balance at May 31, 2020 | $ | (494) | $ | 390 | $ | 115 | $ | (67) | $ | (56) | |||||||
Other comprehensive income (loss): | |||||||||||||||||
Other comprehensive gains (losses) before reclassifications(2) | 499 | (788) | — | (8) | (297) | ||||||||||||
Reclassifications to net income of previously deferred (gains) losses(3) | (3) | (37) | — | 13 | (27) | ||||||||||||
Total other comprehensive income (loss) | 496 | (825) | — | 5 | (324) | ||||||||||||
Balance at May 31, 2021 | $ | 2 | $ | (435) | $ | 115 | $ | (62) | $ | (380) |
(Dollars in millions) | FOREIGN CURRENCY TRANSLATION ADJUSTMENT(1) | CASH FLOW HEDGES | NET INVESTMENT HEDGES(1) | OTHER | TOTAL | ||||||||||
Balance at May 31, 2019 | $ | (346 | ) | $ | 520 | $ | 115 | $ | (58 | ) | $ | 231 | |||
Other comprehensive income (loss): | |||||||||||||||
Other comprehensive gains (losses) before reclassifications(2) | (149 | ) | 387 | — | (8 | ) | 230 | ||||||||
Reclassifications to net income of previously deferred (gains) losses(3) | 1 | (517 | ) | — | (1 | ) | (517 | ) | |||||||
Total other comprehensive income (loss) | (148 | ) | (130 | ) | — | (9 | ) | (287 | ) | ||||||
Balance at May 31, 2020 | $ | (494 | ) | $ | 390 | $ | 115 | $ | (67 | ) | $ | (56 | ) |
(Dollars in millions) | FOREIGN CURRENCY TRANSLATION ADJUSTMENT(1) | CASH FLOW HEDGES | NET INVESTMENT HEDGES(1) | OTHER | TOTAL | ||||||||||
Balance at May 31, 2018 | $ | (173 | ) | $ | 17 | $ | 115 | $ | (51 | ) | $ | (92 | ) | ||
Other comprehensive income (loss): | |||||||||||||||
Other comprehensive gains (losses) before reclassifications(2) | (173 | ) | 573 | — | 10 | 410 | |||||||||
Reclassifications to net income of previously deferred (gains) losses(3) | — | (70 | ) | — | (17 | ) | (87 | ) | |||||||
Total other comprehensive income (loss) | (173 | ) | 503 | — | (7 | ) | 323 | ||||||||
Balance at May 31, 2019 | $ | (346 | ) | $ | 520 | $ | 115 | $ | (58 | ) | $ | 231 |
AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME | LOCATION OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME | ||||||||||
YEAR ENDED MAY 31, | |||||||||||
(Dollars in millions) | 2022 | 2021 | |||||||||
Gains (losses) on foreign currency translation adjustment | $ | — | $ | 3 | Other (income) expense, net | ||||||
Total before tax | 0 | 3 | |||||||||
Tax (expense) benefit | — | — | |||||||||
Gain (loss) net of tax | — | 3 | |||||||||
Gains (losses) on cash flow hedges: | |||||||||||
Foreign exchange forwards and options | $ | (82) | 45 | Revenues | |||||||
Foreign exchange forwards and options | (23) | 51 | Cost of sales | ||||||||
Foreign exchange forwards and options | 1 | 3 | Demand creation expense | ||||||||
Foreign exchange forwards and options | 130 | (47) | Other (income) expense, net | ||||||||
Interest rate swaps | (7) | (7) | Interest expense (income), net | ||||||||
Total before tax | 19 | 45 | |||||||||
Tax (expense) benefit | (11) | (8) | |||||||||
Gain (loss) net of tax | 8 | 37 | |||||||||
Gains (losses) on other | 31 | (13) | Other (income) expense, net | ||||||||
Total before tax | 31 | (13) | |||||||||
Tax (expense) benefit | (9) | — | |||||||||
Gain (loss) net of tax | 22 | (13) | |||||||||
Total net gain (loss) reclassified for the period | $ | 30 | $ | 27 |
AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME | LOCATION OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME | ||||||
YEAR ENDED MAY 31, | |||||||
(Dollars in millions) | 2020 | 2019 | |||||
Gains (losses) on foreign currency translation adjustment | $ | (1 | ) | $ | — | Other (income) expense, net | |
Total before tax | (1 | ) | — | ||||
Tax (expense) benefit | — | — | |||||
Gain (loss) net of tax | (1 | ) | — | ||||
Gains (losses) on cash flow hedges: | |||||||
Foreign exchange forwards and options | $ | (17 | ) | (5 | ) | Revenues | |
Foreign exchange forwards and options | 364 | 53 | Cost of sales | ||||
Foreign exchange forwards and options | (2 | ) | — | Demand creation expense | |||
Foreign exchange forwards and options | 181 | 35 | Other (income) expense, net | ||||
Interest rate swaps | (7 | ) | (7 | ) | Interest expense (income), net | ||
Total before tax | 519 | 76 | |||||
Tax (expense) benefit | (2 | ) | (6 | ) | |||
Gain (loss) net of tax | 517 | 70 | |||||
Gains (losses) on other | 1 | 17 | Other (income) expense, net | ||||
Total before tax | 1 | 17 | |||||
Tax (expense) benefit | — | — | |||||
Gain (loss) net of tax | 1 | 17 | |||||
Total net gain (loss) reclassified for the period | $ | 517 | $ | 87 |
NOTE 16 — REVENUES |
YEAR ENDED MAY 31, 2022 | |||||||||||||||||||||||||||||
(Dollars in millions) | NORTH AMERICA | EUROPE, MIDDLE EAST & AFRICA | GREATER CHINA | ASIA PACIFIC & LATIN AMERICA | GLOBAL BRAND DIVISIONS | TOTAL NIKE BRAND | CONVERSE | CORPORATE | TOTAL NIKE, INC. | ||||||||||||||||||||
Revenues by: | |||||||||||||||||||||||||||||
Footwear | $ | 12,228 | $ | 7,388 | $ | 5,416 | $ | 4,111 | $ | — | $ | 29,143 | $ | 2,094 | $ | — | $ | 31,237 | |||||||||||
Apparel | 5,492 | 4,527 | 1,938 | 1,610 | — | 13,567 | 103 | — | 13,670 | ||||||||||||||||||||
Equipment | 633 | 564 | 193 | 234 | — | 1,624 | 26 | — | 1,650 | ||||||||||||||||||||
Other | — | — | — | — | 102 | 102 | 123 | (72) | 153 | ||||||||||||||||||||
TOTAL REVENUES | $ | 18,353 | $ | 12,479 | $ | 7,547 | $ | 5,955 | $ | 102 | $ | 44,436 | $ | 2,346 | $ | (72) | $ | 46,710 | |||||||||||
Revenues by: | |||||||||||||||||||||||||||||
Sales to Wholesale Customers | $ | 9,621 | $ | 8,377 | $ | 4,081 | $ | 3,529 | $ | — | $ | 25,608 | $ | 1,292 | $ | — | $ | 26,900 | |||||||||||
Sales through Direct to Consumer | 8,732 | 4,102 | 3,466 | 2,426 | — | 18,726 | 931 | — | 19,657 | ||||||||||||||||||||
Other | — | — | — | — | 102 | 102 | 123 | (72) | 153 | ||||||||||||||||||||
TOTAL REVENUES | $ | 18,353 | $ | 12,479 | $ | 7,547 | $ | 5,955 | $ | 102 | $ | 44,436 | $ | 2,346 | $ | (72) | $ | 46,710 |
YEAR ENDED MAY 31, 2021 | |||||||||||||||||||||||||||||
(Dollars in millions) | NORTH AMERICA | EUROPE, MIDDLE EAST & AFRICA | GREATER CHINA | ASIA PACIFIC & LATIN AMERICA(1) | GLOBAL BRAND DIVISIONS | TOTAL NIKE BRAND | CONVERSE | CORPORATE | TOTAL NIKE, INC. | ||||||||||||||||||||
Revenues by: | |||||||||||||||||||||||||||||
Footwear | $ | 11,644 | $ | 6,970 | $ | 5,748 | $ | 3,659 | $ | — | $ | 28,021 | $ | 1,986 | $ | — | $ | 30,007 | |||||||||||
Apparel | 5,028 | 3,996 | 2,347 | 1,494 | — | 12,865 | 104 | — | 12,969 | ||||||||||||||||||||
Equipment | 507 | 490 | 195 | 190 | — | 1,382 | 29 | — | 1,411 | ||||||||||||||||||||
Other | — | — | — | — | 25 | 25 | 86 | 40 | 151 | ||||||||||||||||||||
TOTAL REVENUES | $ | 17,179 | $ | 11,456 | $ | 8,290 | $ | 5,343 | $ | 25 | $ | 42,293 | $ | 2,205 | $ | 40 | $ | 44,538 | |||||||||||
Revenues by: | |||||||||||||||||||||||||||||
Sales to Wholesale Customers | $ | 10,186 | $ | 7,812 | $ | 4,513 | $ | 3,387 | $ | — | $ | 25,898 | $ | 1,353 | $ | — | $ | 27,251 | |||||||||||
Sales through Direct to Consumer | 6,993 | 3,644 | 3,777 | 1,956 | — | 16,370 | 766 | — | 17,136 | ||||||||||||||||||||
Other | — | — | — | — | 25 | 25 | 86 | 40 | 151 | ||||||||||||||||||||
TOTAL REVENUES | $ | 17,179 | $ | 11,456 | $ | 8,290 | $ | 5,343 | $ | 25 | $ | 42,293 | $ | 2,205 | $ | 40 | $ | 44,538 |
YEAR ENDED MAY 31, 2020 | |||||||||||||||||||||||||||
(Dollars in millions) | NORTH AMERICA | EUROPE, MIDDLE EAST & AFRICA | GREATER CHINA | ASIA PACIFIC & LATIN AMERICA | GLOBAL BRAND DIVISIONS | TOTAL NIKE BRAND | CONVERSE | CORPORATE | TOTAL NIKE, INC. | ||||||||||||||||||
Revenues by: | |||||||||||||||||||||||||||
Footwear | $ | 9,329 | $ | 5,892 | $ | 4,635 | $ | 3,449 | $ | — | $ | 23,305 | $ | 1,642 | $ | — | $ | 24,947 | |||||||||
Apparel | 4,639 | 3,053 | 1,896 | 1,365 | — | 10,953 | 89 | — | 11,042 | ||||||||||||||||||
Equipment | 516 | 402 | 148 | 214 | — | 1,280 | 25 | — | 1,305 | ||||||||||||||||||
Other | — | — | — | — | 30 | 30 | 90 | (11 | ) | 109 | |||||||||||||||||
TOTAL REVENUES | $ | 14,484 | $ | 9,347 | $ | 6,679 | $ | 5,028 | $ | 30 | $ | 35,568 | $ | 1,846 | $ | (11 | ) | $ | 37,403 | ||||||||
Revenues by: | |||||||||||||||||||||||||||
Sales to Wholesale Customers | $ | 9,371 | $ | 6,574 | $ | 3,803 | $ | 3,408 | $ | — | $ | 23,156 | $ | 1,154 | $ | — | $ | 24,310 | |||||||||
Sales through Direct to Consumer | 5,113 | 2,773 | 2,876 | 1,620 | — | 12,382 | 602 | — | 12,984 | ||||||||||||||||||
Other | — | — | — | — | 30 | 30 | 90 | (11 | ) | 109 | |||||||||||||||||
TOTAL REVENUES | $ | 14,484 | $ | 9,347 | $ | 6,679 | $ | 5,028 | $ | 30 | $ | 35,568 | $ | 1,846 | $ | (11 | ) | $ | 37,403 |
YEAR ENDED MAY 31, 2019 | |||||||||||||||||||||||||||
(Dollars in millions) | NORTH AMERICA | EUROPE, MIDDLE EAST & AFRICA | GREATER CHINA | ASIA PACIFIC & LATIN AMERICA | GLOBAL BRAND DIVISIONS | TOTAL NIKE BRAND | CONVERSE | CORPORATE | TOTAL NIKE, INC. | ||||||||||||||||||
Revenues by: | |||||||||||||||||||||||||||
Footwear | $ | 10,045 | $ | 6,293 | $ | 4,262 | $ | 3,622 | $ | — | $ | 24,222 | $ | 1,658 | $ | — | $ | 25,880 | |||||||||
Apparel | 5,260 | 3,087 | 1,808 | 1,395 | — | 11,550 | 118 | — | 11,668 | ||||||||||||||||||
Equipment | 597 | 432 | 138 | 237 | — | 1,404 | 24 | — | 1,428 | ||||||||||||||||||
Other | — | — | — | — | 42 | 42 | 106 | (7 | ) | 141 | |||||||||||||||||
TOTAL REVENUES | $ | 15,902 | $ | 9,812 | $ | 6,208 | $ | 5,254 | $ | 42 | $ | 37,218 | $ | 1,906 | $ | (7 | ) | $ | 39,117 | ||||||||
Revenues by: | |||||||||||||||||||||||||||
Sales to Wholesale Customers | $ | 10,875 | $ | 7,076 | $ | 3,726 | $ | 3,746 | $ | — | $ | 25,423 | $ | 1,247 | $ | — | $ | 26,670 | |||||||||
Sales through Direct to Consumer | 5,027 | 2,736 | 2,482 | 1,508 | — | 11,753 | 553 | — | 12,306 | ||||||||||||||||||
Other | — | — | — | — | 42 | 42 | 106 | (7 | ) | 141 | |||||||||||||||||
TOTAL REVENUES | $ | 15,902 | $ | 9,812 | $ | 6,208 | $ | 5,254 | $ | 42 | $ | 37,218 | $ | 1,906 | $ | (7 | ) | $ | 39,117 |
YEAR ENDED MAY 31, 2020 | |||||||||||||||||||||||||||||
(Dollars in millions) | NORTH AMERICA | EUROPE, MIDDLE EAST & AFRICA | GREATER CHINA | ASIA PACIFIC & LATIN AMERICA | GLOBAL BRAND DIVISIONS | TOTAL NIKE BRAND | CONVERSE | CORPORATE | TOTAL NIKE, INC. | ||||||||||||||||||||
Revenues by: | |||||||||||||||||||||||||||||
Footwear | $ | 9,329 | $ | 5,892 | $ | 4,635 | $ | 3,449 | $ | — | $ | 23,305 | $ | 1,642 | $ | — | $ | 24,947 | |||||||||||
Apparel | 4,639 | 3,053 | 1,896 | 1,365 | — | 10,953 | 89 | — | 11,042 | ||||||||||||||||||||
Equipment | 516 | 402 | 148 | 214 | — | 1,280 | 25 | — | 1,305 | ||||||||||||||||||||
Other | — | — | — | — | 30 | 30 | 90 | (11) | 109 | ||||||||||||||||||||
TOTAL REVENUES | $ | 14,484 | $ | 9,347 | $ | 6,679 | $ | 5,028 | $ | 30 | $ | 35,568 | $ | 1,846 | $ | (11) | $ | 37,403 | |||||||||||
Revenues by: | |||||||||||||||||||||||||||||
Sales to Wholesale Customers | $ | 9,371 | $ | 6,574 | $ | 3,803 | $ | 3,408 | $ | — | $ | 23,156 | $ | 1,154 | $ | — | $ | 24,310 | |||||||||||
Sales through Direct to Consumer | 5,113 | 2,773 | 2,876 | 1,620 | — | 12,382 | 602 | — | 12,984 | ||||||||||||||||||||
Other | — | — | — | — | 30 | 30 | 90 | (11) | 109 | ||||||||||||||||||||
TOTAL REVENUES | $ | 14,484 | $ | 9,347 | $ | 6,679 | $ | 5,028 | $ | 30 | $ | 35,568 | $ | 1,846 | $ | (11) | $ | 37,403 |
NOTE 17 — OPERATING SEGMENTS AND RELATED INFORMATION |
YEAR ENDED MAY 31, | |||||||||
(Dollars in millions) | 2020 | 2019 | 2018 | ||||||
REVENUES | |||||||||
North America | $ | 14,484 | $ | 15,902 | $ | 14,855 | |||
Europe, Middle East & Africa | 9,347 | 9,812 | 9,242 | ||||||
Greater China | 6,679 | 6,208 | 5,134 | ||||||
Asia Pacific & Latin America | 5,028 | 5,254 | 5,166 | ||||||
Global Brand Divisions | 30 | 42 | 88 | ||||||
Total NIKE Brand | 35,568 | 37,218 | 34,485 | ||||||
Converse | 1,846 | 1,906 | 1,886 | ||||||
Corporate | (11 | ) | (7 | ) | 26 | ||||
TOTAL NIKE, INC. REVENUES | $ | 37,403 | $ | 39,117 | $ | 36,397 | |||
EARNINGS BEFORE INTEREST AND TAXES | |||||||||
North America | $ | 2,899 | $ | 3,925 | $ | 3,600 | |||
Europe, Middle East & Africa | 1,541 | 1,995 | 1,587 | ||||||
Greater China | 2,490 | 2,376 | 1,807 | ||||||
Asia Pacific & Latin America | 1,184 | 1,323 | 1,189 | ||||||
Global Brand Divisions | (3,468 | ) | (3,262 | ) | (2,658 | ) | |||
Converse | 297 | 303 | 310 | ||||||
Corporate | (1,967 | ) | (1,810 | ) | (1,456 | ) | |||
Interest expense (income), net | 89 | 49 | 54 | ||||||
TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES | $ | 2,887 | $ | 4,801 | $ | 4,325 | |||
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT | |||||||||
North America | $ | 110 | $ | 117 | $ | 196 | |||
Europe, Middle East & Africa | 139 | 233 | 240 | ||||||
Greater China | 28 | 49 | 76 | ||||||
Asia Pacific & Latin America | 41 | 47 | 49 | ||||||
Global Brand Divisions | 438 | 278 | 286 | ||||||
Total NIKE Brand | 756 | 724 | 847 | ||||||
Converse | 12 | 18 | 22 | ||||||
Corporate | 356 | 333 | 325 | ||||||
TOTAL ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT | $ | 1,124 | $ | 1,075 | $ | 1,194 | |||
DEPRECIATION | |||||||||
North America | $ | 148 | $ | 149 | $ | 160 | |||
Europe, Middle East & Africa | 132 | 111 | 116 | ||||||
Greater China | 44 | 50 | 56 | ||||||
Asia Pacific & Latin America | 46 | 53 | 55 | ||||||
Global Brand Divisions | 214 | 195 | 217 | ||||||
Total NIKE Brand | 584 | 558 | 604 | ||||||
Converse | 25 | 31 | 33 | ||||||
Corporate | 112 | 116 | 110 | ||||||
TOTAL DEPRECIATION | $ | 721 | $ | 705 | $ | 747 |
YEAR ENDED MAY 31, | |||||||||||
(Dollars in millions) | 2022 | 2021 | 2020 | ||||||||
REVENUES | |||||||||||
North America | $ | 18,353 | $ | 17,179 | $ | 14,484 | |||||
Europe, Middle East & Africa | 12,479 | 11,456 | 9,347 | ||||||||
Greater China | 7,547 | 8,290 | 6,679 | ||||||||
Asia Pacific & Latin America | 5,955 | 5,343 | 5,028 | ||||||||
Global Brand Divisions | 102 | 25 | 30 | ||||||||
Total NIKE Brand | 44,436 | 42,293 | 35,568 | ||||||||
Converse | 2,346 | 2,205 | 1,846 | ||||||||
Corporate | (72) | 40 | (11) | ||||||||
TOTAL NIKE, INC. REVENUES | $ | 46,710 | $ | 44,538 | $ | 37,403 | |||||
EARNINGS BEFORE INTEREST AND TAXES | |||||||||||
North America | $ | 5,114 | $ | 5,089 | $ | 2,899 | |||||
Europe, Middle East & Africa | 3,293 | 2,435 | 1,541 | ||||||||
Greater China | 2,365 | 3,243 | 2,490 | ||||||||
Asia Pacific & Latin America | 1,896 | 1,530 | 1,184 | ||||||||
Global Brand Divisions | (4,262) | (3,656) | (3,468) | ||||||||
Converse | 669 | 543 | 297 | ||||||||
Corporate | (2,219) | (2,261) | (1,967) | ||||||||
Interest expense (income), net | 205 | 262 | 89 | ||||||||
TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES | $ | 6,651 | $ | 6,661 | $ | 2,887 | |||||
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT | |||||||||||
North America | $ | 146 | $ | 98 | $ | 110 | |||||
Europe, Middle East & Africa | 197 | 153 | 139 | ||||||||
Greater China | 78 | 94 | 28 | ||||||||
Asia Pacific & Latin America | 56 | 54 | 41 | ||||||||
Global Brand Divisions | 222 | 278 | 438 | ||||||||
Total NIKE Brand | 699 | 677 | 756 | ||||||||
Converse | 9 | 7 | 12 | ||||||||
Corporate | 103 | 107 | 356 | ||||||||
TOTAL ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT | $ | 811 | $ | 791 | $ | 1,124 | |||||
DEPRECIATION | |||||||||||
North America | $ | 124 | $ | 130 | $ | 148 | |||||
Europe, Middle East & Africa | 134 | 136 | 132 | ||||||||
Greater China | 41 | 46 | 44 | ||||||||
Asia Pacific & Latin America | 42 | 43 | 46 | ||||||||
Global Brand Divisions | 220 | 222 | 214 | ||||||||
Total NIKE Brand | 561 | 577 | 584 | ||||||||
Converse | 22 | 26 | 25 | ||||||||
Corporate | 134 | 141 | 112 | ||||||||
TOTAL DEPRECIATION | $ | 717 | $ | 744 | $ | 721 |
AS OF MAY 31, | ||||||
(Dollars in millions) | 2020 | 2019 | ||||
ACCOUNTS RECEIVABLE, NET | ||||||
North America | $ | 1,020 | $ | 1,718 | ||
Europe, Middle East & Africa | 712 | 1,164 | ||||
Greater China | 321 | 245 | ||||
Asia Pacific & Latin America(1) | 425 | 771 | ||||
Global Brand Divisions | 65 | 105 | ||||
Total NIKE Brand | 2,543 | 4,003 | ||||
Converse | 149 | 243 | ||||
Corporate | 57 | 26 | ||||
TOTAL ACCOUNTS RECEIVABLE, NET | $ | 2,749 | $ | 4,272 | ||
INVENTORIES | ||||||
North America | $ | 3,077 | $ | 2,328 | ||
Europe, Middle East & Africa | 2,070 | 1,390 | ||||
Greater China | 882 | 693 | ||||
Asia Pacific & Latin America(1) | 770 | 694 | ||||
Global Brand Divisions | 137 | 126 | ||||
Total NIKE Brand | 6,936 | 5,231 | ||||
Converse | 341 | 269 | ||||
Corporate | 90 | 122 | ||||
TOTAL INVENTORIES | $ | 7,367 | $ | 5,622 | ||
PROPERTY, PLANT AND EQUIPMENT, NET | ||||||
North America | $ | 645 | $ | 814 | ||
Europe, Middle East & Africa | 885 | 929 | ||||
Greater China | 214 | 237 | ||||
Asia Pacific & Latin America(1) | 296 | 326 | ||||
Global Brand Divisions | 830 | 665 | ||||
Total NIKE Brand | 2,870 | 2,971 | ||||
Converse | 80 | 100 | ||||
Corporate | 1,916 | 1,673 | ||||
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET | $ | 4,866 | $ | 4,744 |
(1)Excludes assets held-for-sale as of May 31, 2022 and 2021. See Note 20 — Acquisitions and Divestitures for additional information. |
MAY 31, | ||||||||
(Dollars in millions) | 2022 | 2021 | ||||||
United States | $ | 4,916 | $ | 4,927 | ||||
Belgium | 646 | 676 | ||||||
China | 538 | 518 |
MAY 31, | ||||||
(Dollars in millions) | 2020(1) | 2019 | ||||
United States | $ | 5,114 | $ | 3,174 | ||
Belgium | 606 | 618 | ||||
China | 457 | 242 |
NOTE 18 — COMMITMENTS AND CONTINGENCIES |
NOTE 19 — LEASES |
(Dollars in millions) | AS OF MAY 31, 2022(1) | ||||
Fiscal 2023 | $ | 491 | |||
Fiscal 2024 | 543 | ||||
Fiscal 2025 | 490 | ||||
Fiscal 2026 | 405 | ||||
Fiscal 2027 | 350 | ||||
Thereafter | 1,250 | ||||
Total undiscounted future cash flows related to lease payments | $ | 3,529 | |||
Less interest | 332 | ||||
Present value of lease liabilities | $ | 3,197 |
(Dollars in millions) | AS OF MAY 31, 2020(1) | ||
Fiscal 2021 | $ | 550 | |
Fiscal 2022 | 514 | ||
Fiscal 2023 | 456 | ||
Fiscal 2024 | 416 | ||
Fiscal 2025 | 374 | ||
Thereafter | 1,474 | ||
Total undiscounted future cash flows related to lease payments | $ | 3,784 | |
Less: Interest | 426 | ||
Present value of lease liabilities | $ | 3,358 |
AS OF MAY 31, 2019 | |||||||||
(Dollars in millions) | OPERATING LEASES | CAPITAL LEASES AND OTHER FINANCING OBLIGATIONS(1) | TOTAL | ||||||
Fiscal 2020 | $ | 553 | $ | 32 | $ | 585 | |||
Fiscal 2021 | 513 | 34 | 547 | ||||||
Fiscal 2022 | 441 | 40 | 481 | ||||||
Fiscal 2023 | 386 | 37 | 423 | ||||||
Fiscal 2024 | 345 | 34 | 379 | ||||||
Thereafter | 1,494 | 197 | 1,691 | ||||||
TOTAL | $ | 3,732 | $ | 374 | $ | 4,106 |
AS OF MAY 31, | ||||||||
2022 | 2021 | |||||||
Weighted-average remaining lease term (in years) | 7.8 | 8.3 | ||||||
Weighted-average discount rate | 2.3 | % | 2.3 | % |
YEAR ENDED MAY 31, | ||||||||||||||||||||
(Dollars in millions) | 2022 | 2021 | 2020 | |||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||||||||
Operating cash flows from operating leases | $ | 589 | $ | 583 | $ | 532 | ||||||||||||||
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities | $ | 537 | $ | 489 | $ | 705 | (1) |
FISCAL YEAR ENDED | |||
(Dollars in millions) | MAY 31, 2020 | ||
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ | 532 | |
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities(1) | $ | 705 |
NOTE 20 — ACQUISITIONS AND DIVESTITURES |
NOTE 21 — |
(a) | The following documents are filed as part of this report: | |||||||
FORM 10-K PAGE NO. | ||||||||
1. | Financial Statements: | |||||||
Report of Independent Registered Public Accounting Firm (PCAOB ID 238) | ||||||||
2. | Financial Statement Schedule: | |||||||
All other schedules are omitted because they are not applicable or the required information is shown in the financial statements or notes thereto. | ||||||||
3. | Exhibits: | |||||||
3.1 | ||||||||
3.2 | ||||||||
4.1 | ||||||||
4.2 | ||||||||
4.3 | ||||||||
4.4 | ||||||||
4.5 | ||||||||
4.6 | ||||||||
4.7 | ||||||||
10.1 | ||||||||
10.25 | |||||
10.27 | Credit Agreement, dated as of | ||||
10.28 | Credit Agreement, dated as of March 11, 2022, among NIKE, Inc., Bank of America, N.A., as Administrative Agent, and the other Banks named therein (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed March 14, 2022). | ||||
21 | |||||
23 | |||||
31.1 | |||||
31.2 | |||||
32 | |||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
101.SCH | Inline XBRL Taxonomy Extension Schema | ||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase | ||||
101.DEF | Inline XBRL Taxonomy Extension Definition Document | ||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase | ||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase | ||||
104 | Cover Page Interactive Data File - formatted in Inline XBRL and included in Exhibit 101 |
(Dollars in millions) | BALANCE AT BEGINNING OF PERIOD | CHARGED TO COSTS AND EXPENSES | CHARGED TO OTHER ACCOUNTS(1) | WRITE-OFFS, NET | BALANCE AT END OF PERIOD | ||||||||||||
Sales returns reserve | |||||||||||||||||
For the fiscal year ended May 31, 2020(2) | $ | 843 | $ | 2,263 | $ | (31) | $ | (2,393) | $ | 682 | |||||||
For the fiscal year ended May 31, 2021(2) | 682 | 2,617 | 41 | (2,745) | 595 | ||||||||||||
For the fiscal year ended May 31, 2022 | 595 | 2,573 | (31) | (2,612) | 525 |
(Dollars in millions) | BALANCE AT BEGINNING OF PERIOD | CHARGED TO COSTS AND EXPENSES | CHARGED TO OTHER ACCOUNTS(1) | WRITE-OFFS, NET | BALANCE AT END OF PERIOD | ||||||||||
Sales returns reserve | |||||||||||||||
For the fiscal year ended May 31, 2018 | $ | 343 | $ | 640 | $ | 5 | $ | (658 | ) | $ | 330 | ||||
For the fiscal year ended May 31, 2019(2) | 734 | 1,959 | (30 | ) | (1,820 | ) | 843 | ||||||||
For the fiscal year ended May 31, 2020 | 843 | 1,941 | (31 | ) | (2,071 | ) | 682 |
NIKE, INC. | ||||||||
By: | /s/ JOHN J. DONAHOE II John J. Donahoe II President and Chief Executive Officer | |||||||
Date: | July |
SIGNATURE | TITLE | DATE | ||||||
PRINCIPAL EXECUTIVE OFFICER AND DIRECTOR: | ||||||||
/s/ JOHN J. DONAHOE II John J. Donahoe II | President and Chief Executive Officer | July | ||||||
PRINCIPAL FINANCIAL OFFICER: | ||||||||
/s/ MATTHEW FRIEND Matthew Friend | Executive Vice President and Chief Financial Officer | July | ||||||
PRINCIPAL ACCOUNTING OFFICER: | ||||||||
/s/ CHRIS L. ABSTON Chris L. Abston | Vice President and Corporate Controller | July | ||||||
DIRECTORS: | ||||||||
/s/ MARK G. PARKER Mark G. Parker | Director, Chairman of the Board | July | ||||||
/s/ CATHLEEN A. BENKO Cathleen A. Benko | Director | July | ||||||
/s/ ELIZABETH J. COMSTOCK Elizabeth J. Comstock | Director | July | ||||||
/s/ TIMOTHY D. COOK Timothy D. Cook | Director | July | ||||||
/s/ THASUNDA B. DUCKETT Thasunda B. Duckett | Director | July | ||||||
/s/ ALAN B. GRAF, JR. Alan B. Graf, Jr. | Director | July | ||||||
/s/ PETER B. HENRY Peter B. Henry | Director | July | ||||||
/s/ TRAVIS A. KNIGHT Travis A. Knight | Director | July | ||||||
/s/ MICHELLE A. PELUSO Michelle A. Peluso | Director | July | ||||||
/s/ JOHN W. ROGERS, JR. John W. Rogers, Jr. | Director | July |