Statement Of Financial Position
Statement Of Financial Position Classified (USD $) | ||
In Millions | 6 Months Ended
Nov. 30, 2009 | 12 Months Ended
May. 31, 2009 |
Current assets: | ||
Cash and equivalents | 2035.2 | 2291.1 |
Short-term investments (Note 5) | 1974.8 | 1,164 |
Accounts receivable, net | 2716.5 | 2883.9 |
Inventories (Note 2) | 2176.3 | 2,357 |
Deferred income taxes (Note 6) | 220 | 272.4 |
Prepaid expenses and other current assets (Note 11) | 642.8 | 765.6 |
Total current assets | 9765.6 | 9,734 |
Property, plant and equipment | 4502.5 | 4255.7 |
Less accumulated depreciation | 2478.6 | 2,298 |
Property, plant and equipment, net | 2023.9 | 1957.7 |
Identifiable intangible assets, net (Note 3) | 472.5 | 467.4 |
Goodwill (Note 3) | 196.2 | 193.5 |
Deferred income taxes and other long-term assets (Note 6 and 11) | 900.2 | 897 |
Total assets | 13358.4 | 13249.6 |
Current liabilities: | ||
Current portion of long-term debt | 7.6 | 32 |
Notes payable | 103.1 | 342.9 |
Accounts payable | 1008.7 | 1031.9 |
Accrued liabilities (Note 4) | 1597.7 | 1783.9 |
Income taxes payable (Note 6) | 81.2 | 86.3 |
Total current liabilities | 2798.3 | 3,277 |
Long-term debt | 459.6 | 437.2 |
Deferred income taxes and other long-term liabilities (Note 6) | 876.1 | 842 |
Commitments and contingencies (Note 13) | - | - |
Redeemable preferred stock | 0.3 | 0.3 |
Common stock at stated value: | ||
Capital in excess of stated value | 3186.1 | 2871.4 |
Accumulated other comprehensive income (Note 7) | 156 | 367.5 |
Retained earnings | 5879.2 | 5451.4 |
Total shareholders' equity | 9224.1 | 8693.1 |
Total liabilities and shareholders' equity | 13358.4 | 13249.6 |
Class A Common Stock | ||
Common stock at stated value: | ||
Common Stock | 0.1 | 0.1 |
Class B Common Stock | ||
Common stock at stated value: | ||
Common Stock | 2.7 | 2.7 |
1_Statement Of Financial Positi
Statement Of Financial Position Classified (Parenthetical) (USD $) | ||
Share data in Millions | Nov. 30, 2009
| May. 31, 2009
|
Class A Common Stock | ||
Common Stock, shares outstanding | 90 | 95.3 |
Class B Common Stock | ||
Common Stock, shares outstanding | 397.5 | 390.2 |
Statement Of Income
Statement Of Income (USD $) | ||||
In Millions, except Per Share data | 3 Months Ended
Nov. 30, 2009 | 3 Months Ended
Nov. 30, 2008 | 6 Months Ended
Nov. 30, 2009 | 6 Months Ended
Nov. 30, 2008 |
Revenues | 4405.6 | 4590.1 | 9204.1 | 10022.3 |
Cost of sales | 2444.9 | 2540.1 | 5027.9 | 5410.2 |
Gross margin | 1960.7 | 2,050 | 4176.2 | 4612.1 |
Selling and administrative expense | 1478.6 | 1546.8 | 3024.7 | 3403.2 |
Other income, net | 10.5 | 12.4 | 23.6 | 10.8 |
Interest (expense) income, net | -1.6 | 5 | -2.9 | 15.1 |
Income before income taxes | 491 | 520.6 | 1172.2 | 1234.8 |
Income tax expense (Note 6) | 115.6 | 129.6 | 283.8 | 333.3 |
Net income | 375.4 | $391 | 888.4 | 901.5 |
Basic earnings per common share (Note 9) | 0.77 | 0.81 | 1.83 | 1.86 |
Diluted earnings per common share (Note 9) | 0.76 | 0.8 | 1.8 | 1.83 |
Dividends declared per common share | 0.27 | 0.25 | 0.52 | 0.48 |
Statement Of Cash Flows Indirec
Statement Of Cash Flows Indirect (USD $) | ||
In Millions | 6 Months Ended
Nov. 30, 2009 | 6 Months Ended
Nov. 30, 2008 |
Cash provided by operations: | ||
Net income | 888.4 | 901.5 |
Income charges (credits) not affecting cash: | ||
Depreciation | 159.1 | 159.2 |
Deferred income taxes | 19.1 | -39.1 |
Stock-based compensation | 114.5 | 103.3 |
Amortization and other | 15.8 | 15.7 |
Changes in certain working capital components and other assets and liabilities: | ||
Decrease (increase) in accounts receivable | 284.7 | (173) |
Decrease (increase) in inventories | 251.7 | (126) |
(Increase) decrease in prepaid expenses and other assets | -0.7 | 25.6 |
Decrease in accounts payable, accrued liabilities and income taxes payable | -355.5 | -228.9 |
Cash provided by operations | 1377.1 | 638.3 |
Cash used by investing activities: | ||
Purchases of investments | (1,580) | -1398.5 |
Maturities of investments | 389.6 | 438.1 |
Sales of investments | 358.8 | 602.1 |
Additions to property, plant and equipment | -172.6 | -224.9 |
Proceeds from the sale of property, plant and equipment | 9.1 | 14 |
Increase in other assets and liabilities, net | -2.7 | -26.3 |
Settlement of net investment hedges | (67) | 185.4 |
Cash used by investing activities | -1064.8 | -410.1 |
Cash used by financing activities: | ||
Reduction in long-term debt, including current portion | -28.6 | -3.2 |
(Decrease) increase in notes payable | -245.3 | 153.7 |
Proceeds from exercise of stock options and other stock issuances | 179.1 | 139.6 |
Excess tax benefits from share-based payment arrangements | 24.9 | 21.4 |
Repurchase of common stock | -192.7 | -649.2 |
Dividends on common stock | -243.1 | -224.6 |
Cash used by financing activities | -505.7 | -562.3 |
Effect of exchange rate changes on cash | -62.5 | -78.3 |
Net decrease in cash and equivalents | -255.9 | -412.4 |
Cash and equivalents, beginning of period | 2291.1 | 2133.9 |
Cash and equivalents, end of period | 2035.2 | 1721.5 |
Supplemental disclosure of cash flow information: | ||
Dividends declared and not paid | 131.6 | 121.1 |
NOTE 1 - Summary of Significant
NOTE 1 - Summary of Significant Accounting Policies: | |
6 Months Ended
Nov. 30, 2009 USD / shares | |
NOTE 1 - Summary of Significant Accounting Policies: | NOTE 1 - Summary of Significant Accounting Policies: Basis of presentation: The accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary for a fair statement of the results of operations for the interim period.The year-end condensed consolidated balance sheet data as of May31, 2009 was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.The interim financial information and notes thereto should be read in conjunction with the Companys latest Annual Report on Form 10-K.The results of operations for the three and six months ended November30, 2009 are not necessarily indicative of results to be expected for the entire year. Subsequent events have been evaluated through January6, 2010, the date of issuance of the Companys Unaudited Condensed Consolidated Financial Statements. Recently Adopted Accounting Standards: In June 2009, the Financial Accounting Standards Board (FASB) established the FASB Accounting Standards Codification (the Codification) as the single source of authoritative U.S. generally accepted accounting principles (GAAP) for all non-governmental entities. The Codification, which launched July1, 2009, changes the referencing and organization of accounting guidance. The Codification became effective for the Company beginning September1, 2009. The issuance of FASB Codification did not change GAAP and therefore the adoption has only affected how specific references to GAAP literature are disclosed in the notes to our consolidated financial statements. In May 2009, the FASB issued new accounting guidance establishing general standards of accounting and disclosure for events that occur after the balance sheet date but before financial statements are issued. This guidance became effective for the Company beginning June1, 2009. The adoption of this guidance did not have an impact on the Companys consolidated financial position or results of operations. See Note 1- Summary of Significant Accounting Policies Basis of Presentation for the required disclosure under the newly adopted guidance. In April 2009, the FASB updated guidance related to fair-value measurements to clarify the guidance related to measuring fair-value in inactive markets, to modify the recognition and measurement of other-than-temporary impairments of debt securities, and to require public companies to disclose the fair values of financial instruments in interim periods. This updated guidance became effective for the Company beginning June1, 2009. The adoption of this guidance did not have an impact on the Companys consolidated financial position or results of operations. See Note 5- Fair Value Measurements for the disclosure required under the updated guidance. In June 2008, the FASB issued new accounting guidance applicable when determining whether instruments granted in share-based payment transactions are participating securities. This guidance clarifies that share-based payment awards that entitle their h |
NOTE 2 - Inventories:
NOTE 2 - Inventories: | |
6 Months Ended
Nov. 30, 2009 USD / shares | |
NOTE 2 - Inventories: | NOTE 2 - Inventories: Inventory balances of $2,176.3 million and $2,357.0 million at November30, 2009 and May31, 2009, respectively, were substantially all finished goods. |
NOTE 3 - Identified Intangible
NOTE 3 - Identified Intangible Assets and Goodwill: | |
6 Months Ended
Nov. 30, 2009 USD / shares | |
NOTE 3 - Identified Intangible Assets and Goodwill: | NOTE 3 - Identified Intangible Assets and Goodwill: The following table summarizes the Companys identifiable intangible assets and goodwill balances as of November30, 2009 and May31, 2009. November30, 2009 May31, 2009 Gross Carrying Amount Accumulated Amortization NetCarrying Amount Gross Carrying Amount Accumulated Amortization NetCarrying Amount (in millions) Amortized intangible assets: Patents $ 61.6 $ (19.3 ) $ 42.3 $ 56.6 $ (17.2 ) $ 39.4 Trademarks 38.8 (14.3 ) 24.5 37.5 (10.9 ) 26.6 Other 37.0 (19.0 ) 18.0 40.0 (19.6 ) 20.4 Total $ 137.4 $ (52.6 ) 84.8 $ 134.1 $ (47.7 ) 86.4 Unamortized intangible assets - Trademarks 387.7 381.0 Identifiable intangible assets, net $ 472.5 $ 467.4 Goodwill $ 196.2 $ 193.5 The effect of foreign exchange fluctuations for the six month period ended November30, 2009 increased goodwill and unamortized intangible assetsbyapproximately $2.7 million and $6.7 million, respectively, resulting from the weakening of the U.S. dollar in relation to the British pound sterling. Amortization expense, which is included in selling and administrative expense, was $3.2 million and $2.3 million forthe three-month periods ended November30, 2009 and November30, 2008, respectively and $6.6 million and $4.5 million for the six-month periods ended November30, 2009 and November30, 2008, respectively. The estimated amortization expense for intangible assets subject to amortization for the remainder of fiscal year 2010 and each of the years ending May31, 2011 through May31, 2014 are as follows:$6.6 million; 2011: $12.8 million; 2012: $12.1 million; 2013: $10.3 million; 2014: $8.2 million. All goodwill balances are included in the Companys Other category for segment reporting purposes. |
NOTE 4 - Accrued Liabilities:
NOTE 4 - Accrued Liabilities: | |
6 Months Ended
Nov. 30, 2009 USD / shares | |
NOTE 4 - Accrued Liabilities: | NOTE 4 - Accrued Liabilities: Accrued liabilities include the following: November30,2009 May31,2009 (in millions) Compensation and benefits, excluding taxes $ 387.2 $ 491.9 Endorser compensation 192.8 237.1 Taxes other than income taxes 173.2 161.9 Advertising and marketing 133.2 97.6 Dividends payable 131.6 121.4 Fair value of derivatives 98.9 68.9 Import and logistics costs 77.3 59.4 Restructuring charges(1) 25.2 149.6 Other(2) 378.3 396.1 Total Accrued Liabilities $ 1,597.7 $ 1,783.9 (1) Accrued restructuring charges primarily consist of severance costs relating to the Companys restructuring activities that took place during the fourth quarter of fiscal 2009. See Note 10 - Restructuring Activities for more information. (2) Other consists of various accrued expenses. No individual item accounted for more than 5% of the total balance at November30, 2009 and May31, 2009. |
NOTE 5 - Fair Value Measurement
NOTE 5 - Fair Value Measurements: | |
6 Months Ended
Nov. 30, 2009 USD / shares | |
NOTE 5 - Fair Value Measurements: | NOTE 5 - Fair Value Measurements: The Company measures certain financial assets and liabilities at fair value on a recurring basis, including derivatives and available-for-sale securities. Fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability.As a basis for considering such assumptions, the Company uses a three-level hierarchy established by the FASB which prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach, and cost approach). The levels of hierarchy are described below: Level 1:Observable inputs such as quoted prices in active markets for identical assets or liabilities. Level 2:Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3:Unobservable inputs in which there is little or no market data available, which require the reporting entity to develop its own assumptions. The Companys assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.Financial assets and liabilities are classified in their entirety based on the most stringent level of input that is significant to the fair value measurement. The following table presents information about the Company's financial assets and liabilities measured at fair value on a recurring basis as of November30, 2009 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. November30, 2009 FairValueMeasurementsUsing Level 1 Level 2 Level3 Assets/Liabilitiesat Fair Value Balance Sheet Classification (in millions) Assets Derivatives $ $ 97.7 $ $ 97.7 Other current assets and other long-term assets Available-for-sale securities 140.4 1,160.5 1,300.9 Cash equivalents Available-for-sale securities 963.5 1,011.3 1,974.8 Short-term investments Total assets $ 1,103.9 $ 2,269.5 $ $ 3,373.4 Liabilities Derivatives $ $ 108.1 $ $ 108.1 Accrued liabilities and other long-term liabilities Total Liabilities $ $ 108.1 $ $ 108.1 Derivative financial instruments include foreign currency forwards, option contracts and interest rate swaps.The fair value of derivative contracts is determined using observable market inputs such as the forward pricing curve, currency volatilities, currency correlations, and interest rates, and considers nonperformance risk of the Company and that of its counterparties. Adjustments |
NOTE 6 - Income Taxes:
NOTE 6 - Income Taxes: | |
6 Months Ended
Nov. 30, 2009 USD / shares | |
NOTE 6 - Income Taxes: | NOTE 6 - Income Taxes: The effective tax rate was 24.2% and 27.0% for the six months ended November30, 2009 and November30, 2008, respectively. The effective tax rate for the six months ended November30, 2009 was impacted by resolutions and settlements of uncertain tax positions as well as a reduction in our on-going effective tax rate resulting from our operations outside of the United States. The Companys tax rates on operations outside of the United States are generally lower than the U.S. statutory rate. As of November30, 2009, total gross unrecognized tax benefits, excluding related interest and penalties, were $263.4 million, $121.1 million of which would affect the Companys effective tax rate if recognized in future periods. Total gross unrecognized tax benefits, excluding interest and penalties, as of May31, 2009 were $273.9 million, $110.6 million of which would affect the Companys effective tax rate if recognized in future periods.The gross liability for payment of interest and penalties increased $0.2 million during the six months ended November30, 2009.As of November30, 2009, accrued interest and penalties related to uncertain tax positions were $75.6 million (excluding federal benefit). The Company is subject to taxation primarily in the U.S., China and the Netherlands as well as various state and other foreign jurisdictions. The Company has concluded substantially all U.S. federal income tax matters through fiscal year 2006. The Company is currently under audit by the Internal Revenue Service for the 2007, 2008 and 2009 tax years. The Companys major foreign jurisdictions, China and the Netherlands, have concluded substantially all income tax matters through calendar 1998 and fiscal 2002, respectively. It is reasonably possible that the Internal Revenue Service audits for the 2007, 2008 and 2009 tax years will be completed during the next twelve months, which could result in a decrease in our balance of unrecognized tax benefits.An estimate of the range cannot be made at this time; however, we do not anticipate that total gross unrecognized tax benefits will change significantly as a result of full or partial settlement of audits within the next 12 months. |
NOTE 7 - Comprehensive Income:
NOTE 7 - Comprehensive Income: | |
6 Months Ended
Nov. 30, 2009 USD / shares | |
NOTE 7 - Comprehensive Income: | NOTE 7 - Comprehensive Income: Comprehensive income, net of taxes, is as follows: Three Months Ended November30, Six Months Ended November30, 2009 2008 2009 2008 (in millions) Net income $ 375.4 $ 391.0 $ 888.4 $ 901.5 Other comprehensive (loss) income: Changes in cumulative translation adjustment and other(1) 61.3 (352.0 ) 85.1 (514.9 ) Changes due to cash flow hedging instruments: Net (loss) gain on hedge derivatives (92.3 ) 366.4 (156.0 ) 538.8 Reclassification to net income of previously deferred (gains) losses related to hedge derivative instruments (29.0 ) 8.7 (90.3 ) 45.8 Reclassification of ineffective hedge (gains) losses to net income(2) (3.8 ) Changes due to net investment hedges: Net (loss) gain on hedge derivatives (28.3 ) 156.7 (46.5 ) 219.7 Other comprehensive (loss) income: (88.3 ) 179.8 (211.5 ) 289.4 Total comprehensive income $ 287.1 $ 570.8 $ 676.9 $ 1,190.9 (1) Certain prior year amounts have been revised to properly reflect Changes in cumulative translation adjustment and other in the table above. These revisions affected certain balances reported in our unaudited condensed consolidated balance sheets as of November30, 2008 and February 28, 2009. As of and for the three and six month periods ended November30, 2008, these revisions resulted in an increase in other comprehensive income of $288.0 million, an increase in long-term deferred tax assets of $175.0 million and a decrease in long-term deferred liabilities of $113.0 million. These revisions did not affect the Companys previously reported results of operations and the Company has concluded that these revisions were not material to the financial position for the quarter ended November30, 2008 or any other subsequent period. (2) Refer to Note 11- Risk Management and Derivatives for additional detail. |
NOTE 8 - Stock-Based Compensati
NOTE 8 - Stock-Based Compensation: | |
6 Months Ended
Nov. 30, 2009 USD / shares | |
NOTE 8 - Stock-Based Compensation: | NOTE 8 - Stock-Based Compensation: A committee of the Board of Directors grants stock options and restricted stock under the NIKE, Inc. 1990 Stock Incentive Plan (the 1990 Plan). The committee has granted substantially all stock options at 100% of the market price on the date of grant. Substantially all stock option grants outstanding under the 1990 Plan were granted in the first quarter of each fiscal year, vest ratably over four years, and expire 10 years from the date of grant.In addition to the 1990 Plan, the Company gives employees the right to purchase shares at a discount to the market price under employee stock purchase plans (ESPPs). The Company accounts for stock-based compensation by estimating the fair value of options granted under the 1990 Plan and employees purchase rights under the ESPPs using the Black-Scholes option pricing model.The Company recognizes this fair value as selling and administrative expense over the vesting period using the straight-line method. The following table summarizes the Companys total stock-based compensation expense: ThreeMonthsEnded November30, Six Months Ended November30, 2009 2008 2009 2008 (in millions) Stock Options(1) $ 16.3 $ 18.5 $ 101.3 $ 91.8 ESPPs 3.9 4.6 8.2 7.6 Restricted Stock 2.9 2.0 5.0 3.9 Total stock-based compensation expense $ 23.1 $ 25.1 $ 114.5 $ 103.3 (1) Accelerated stock option expense is recorded for employees eligible for accelerated stock option vesting upon retirement.Accelerated stock option expense was $1.2 million and $1.0 million for thethree months ended November30, 2009 and November30, 2008, respectively, and was $72.0 million and $56.7 million for the six months ended November30, 2009 and November30, 2008 respectively. As of November30, 2009, the Company had $118.0 million of unrecognized compensation costs from stock options, net of estimated forfeitures, to be recognized as selling and administrative expense over a weighted average period of 2.6 years. The weighted average fair value per share of the options granted during the six months ended November30, 2009 and November30, 2008 as computed using the Black-Scholes pricing model was $23.41 and $17.12, respectively.The weighted average assumptions used to estimate these fair values are as follows: SixMonthsEnded November30, 2009 2008 Dividend yield 1.9 % 1.5 % Expected volatility 57.8 % 32.4 % Weighted-average expected life (in years) 5.0 5.0 Risk-free interest rate 2.5 % 3.4 % Expected volatility is estimated based on the implied volatility in market traded options on the Companys common stock with a term greater than one year, along with other factors. The weighted average expected life of options is based on an analysis of historical and expected future exercise patterns.The interest rate is based on the U.S. Treasury (constant maturity) risk-free rate in effect at the date of grant for periods corresponding with the expected term of the op |
NOTE 9 - Earnings Per Common Sh
NOTE 9 - Earnings Per Common Share: | |
6 Months Ended
Nov. 30, 2009 USD / shares | |
NOTE 9 - Earnings Per Common Share: | NOTE 9 - Earnings Per Common Share: The following is a reconciliation from basic earnings per share to diluted earnings per share.Options to purchase an additional 0.2million and 13.9million shares of common stock were outstandingfor the three months endedNovember 30, 2009 and November30, 2008, respectively, and 12.6 and 13.8million shares of common stock were outstanding for the six months ended November30, 2009 and November30, 2008, respectively, but were not included in the computation of diluted earnings per share because the options were anti-dilutive. ThreeMonthsEnded November30, Six Months Ended November30, 2009 2008 2009 2008 (in millions, except per share data) Determination of shares: Weighted average common shares outstanding 487.2 483.7 486.5 485.5 Assumed conversion of dilutive stock options and awards 7.3 6.1 7.0 6.9 Diluted weighted average common shares outstanding 494.5 489.8 493.5 492.4 Basic earnings per common share $ 0.77 $ 0.81 $ 1.83 $ 1.86 Diluted earnings per common share $ 0.76 $ 0.80 $ 1.80 $ 1.83 |
NOTE 10 - Restructuring Activit
NOTE 10 - Restructuring Activities: | |
6 Months Ended
Nov. 30, 2009 USD / shares | |
NOTE 10 - Restructuring Activities: | NOTE 10 - Restructuring Activities: During the fourth quarter of fiscal 2009, the Company took necessary steps to streamline its management structure, enhance consumer focus, drive innovation more quickly to market and establish a more scalable, long-term cost structure. As a result, the Company reduced its global workforce by approximately 5% and incurred gross restructuring charges of $195 million, primarily consisting of severance costs related to the workforce reduction. As nearly all of the restructuring activities were completed in the fourth quarter of fiscal 2009, the Company does not expect to recognize additional costs in future periods relating to these actions. The activity in the restructuring accrual for the six month period ended November30, 2009 is as follows (in millions): Restructuring accrual - May31, 2009 $ 149.6 Cash payments (126.8 ) Foreign currency translation and other 2.4 Restructuring accrual - November 30, 2009 $ 25.2 The accrual balance as of November30, 2009 will be relieved throughout the remainder of fiscal year 2010 and early 2011, as severance payments are completed. The restructuring accrual is included in the balance of accrued liabilities in the unaudited condensed consolidated balance sheets. |
NOTE 11 - Risk Management and D
NOTE 11 - Risk Management and Derivatives: | |
6 Months Ended
Nov. 30, 2009 USD / shares | |
NOTE 11 - Risk Management and Derivatives: | NOTE 11 - Risk Management and Derivatives: The Company is exposed to global market risks, including the effect of changes in foreign currency exchange rates and interest rates, and uses derivatives to manage financial exposures that occur in the normal course of business. The Company does not hold or issue derivatives for trading purposes. The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking hedge transactions. This process includes linking all derivatives to either specific firm commitments or forecasted transactions. The Company also enters into foreign exchange forwards to mitigate the change in fair value of specific assets and liabilities on the balance sheet, which are not designated as hedging instruments under the accounting standards for derivatives and hedging. Accordingly, changes in the fair value of hedges of recorded balance sheet positions are recognized immediately in other income, net, on the income statement together with the transaction gain or loss from the hedged balance sheet position. The majority of derivatives outstanding as of November30, 2009 are designated as either cash flow, fair value or net investment hedges. All derivatives are recognized on the balance sheet at their fair value and classified based on the instruments maturity date. The total notional amount of outstanding derivatives as of November30, 2009 was $6.4 billion, which is primarily comprised of cash flow hedges denominated in Euros, British Pounds and Japanese Yen. The following table presents the fair values of derivative instruments included within the unaudited condensed consolidated balance sheet as of November30, 2009: Asset Derivatives Liability Derivatives Balance Sheet Location FairValue Balance Sheet Location FairValue (in millions) Derivatives designated as hedging instruments: Foreign exchange forwards and options Prepaid expenses and other current assets $ 65.0 Accrued liabilities $ 72.0 Foreign exchange forwards and options Deferred income taxes and other long-term assets 9.5 Deferred income taxes and other long-term liabilities 6.5 Interest rate swap contracts Deferred income taxes and other long-term assets 16.1 Deferred income taxes and other long-term liabilities Total derivatives designated as hedging instruments 90.6 78.5 Derivatives not designated as hedging instruments: Foreign exchange forwards and options Prepaid expenses and other current assets $ 7.1 Accrued liabilities $ 26.9 Foreign exchange forwards and options Deferred income taxes and other long-term assets Deferred income taxes and other long-term liabilities 2.7 Total derivatives not designated as hedging instruments 7.1 29.6 Total derivatives $ 97.7 $ 108.1 The following tables present |
NOTE 12 - Operating Segments:
NOTE 12 - Operating Segments: | |
6 Months Ended
Nov. 30, 2009 USD / shares | |
NOTE 12 - Operating Segments: | NOTE 12 - Operating Segments: The Companys operating segments are evidence of the structure of the Companys internal organization. The major segments are defined by geographic regions for operations participating in NIKE Brand sales activity excluding NIKE Golf. Each NIKE Brand geographic segment operates predominantly in one industry: the design, production, marketing and selling of sports and fitness footwear, apparel, and equipment. As previously announced, in the third quarter of fiscal 2009, the Company initiated a reorganization of the NIKE brand into a new model consisting of six geographies.Effective June1, 2009, the Companys new reportable operating segments for the NIKE brand are: North America, Western Europe, Central and Eastern Europe, Greater China, Japan, and Emerging Markets. Previously, NIKE brand operations were organized into the following four geographic regions: U.S., Europe, Middle East and Africa (collectively, EMEA), Asia Pacific, and Americas. The Companys Other category is broken into two components for presentation purposes to align with the way management views the Company. The Global Brand Divisions category primarily represents NIKE brand licensing businesses that are not part of a geographic operating segment and selling, general and administrative expenses that are centrally managed for the NIKE brand. The Other Businesses category primarily consists of theactivities of Cole Haan, Converse Inc., Hurley International LLC, NIKE Golf and Umbro Ltd. Activities represented in the Other category are considered immaterial for individual disclosure. Prior period amounts have been reclassified to conform to the Companys new operating structure described above. Revenues as shown below represent sales to external customers for each segment.Intercompany revenues have been eliminated and are immaterial for separate disclosure. Corporate consists of unallocated general and administrative expenses, which includes expenses associated with centrally managed departments, depreciation and amortization related to the Companys headquarters, unallocated insurance and benefit programs, certain foreign currency gains and losses, including hedge gains and losses, certain corporate eliminations and other items. Effective June1, 2009, the primary financial measure used by the Company to evaluate performance of individual operating segments is Earnings Before Interest and Taxes (commonly referred to as EBIT) which represents net income before interest (expense) income, net and income taxes in the Unaudited Condensed Consolidated Statements of Income. Reconciling items for earnings before interest and taxes represent corporate expense items that are not allocated to the operating segments for management reporting. Previously, the Company evaluated performance of individual operating segments based on pre-tax income or income before income taxes. As part of the Companys centrally managed foreign exchange risk management program, standard foreign currency rates are assigned to each NIKE brand entity in our geographic operating segments and are used to record any non-functional currency revenues or product purchases into |
NOTE 13 - Commitments and Conti
NOTE 13 - Commitments and Contingencies: | |
6 Months Ended
Nov. 30, 2009 USD / shares | |
NOTE 13 - Commitments and Contingencies: | NOTE 13 - Commitments and Contingencies: At November30, 2009 the Company had letters of credit outstanding totaling $77.5 million.These letters of credit were issued primarily for the purchase of inventory. There have been no other significant subsequent developments relating to the commitments and contingencies reported on the Companys latest Annual Report on Form 10-K. |
Document Information
Document Information | |
6 Months Ended
Nov. 30, 2009 USD / shares | |
Document Information [Text Block] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | 2009-11-30 |
Entity Information
Entity Information (USD $) | |
6 Months Ended
Nov. 30, 2009 | |
Entity [Text Block] | |
Trading Symbol | NKE |
Entity Registrant Name | NIKE INC |
Entity Central Index Key | 0000320187 |
Current Fiscal Year End Date | --05-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 397,462,136 |
Class A Common Stock | |
Entity [Text Block] | |
Entity Common Stock, Shares Outstanding | 89,990,248 |