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Share Name | Share Symbol | Market | Type |
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Nike Inc | NYSE:NKE | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.005 | -0.01% | 93.355 | 94.315 | 93.22 | 93.98 | 3,457,566 | 18:01:31 |
Oregon
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93-0584541
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT:
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|||||||||||
Class B Common Stock
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NKE
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New York Stock Exchange
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|||||||||
(Title of each class)
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(Trading symbol)
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(Name of each exchange on which registered)
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Indicate by check mark:
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YES
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NO
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||||||||||||||||||||||||||||||||||||
• |
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.
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þ
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☐
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|||||||||||||||||||||||||||||||||||
• |
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).
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þ
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☐
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|||||||||||||||||||||||||||||||||||
• |
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.
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Large accelerated filer
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þ
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Accelerated filer
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☐
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Non-accelerated filer
|
☐
|
Smaller reporting company
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☐
|
Emerging growth company
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☐
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|||||||||||||||||||||||||||||
• |
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.
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☐
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||||||||||||||||||||||||||||||||||||
• |
whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).
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☐
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þ
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As of December 28, 2020, the number of shares of the Registrant's Common Stock outstanding were:
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|||||
Class A
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305,011,252 | ||||
Class B
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1,271,478,759 | ||||
1,576,490,011 |
PAGE | ||||||||
PART I - FINANCIAL INFORMATION
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||||||||
ITEM 1.
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||||||||
ITEM 2.
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||||||||
ITEM 3. | ||||||||
ITEM 4. | ||||||||
PART II - OTHER INFORMATION
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ITEM 1. | ||||||||
ITEM 1A. | ||||||||
ITEM 2. | ||||||||
ITEM 6. | ||||||||
THREE MONTHS ENDED NOVEMBER 30, | SIX MONTHS ENDED NOVEMBER 30, | ||||||||||||||||||||||
(In millions, except per share data)
|
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Revenues | $ | 11,243 | $ | 10,326 | $ | 21,837 | $ | 20,986 | |||||||||||||||
Cost of sales | 6,396 | 5,782 | 12,249 | 11,571 | |||||||||||||||||||
Gross profit | 4,847 | 4,544 | 9,588 | 9,415 | |||||||||||||||||||
Demand creation expense | 729 | 881 | 1,406 | 1,899 | |||||||||||||||||||
Operating overhead expense | 2,538 | 2,443 | 4,836 | 4,753 | |||||||||||||||||||
Total selling and administrative expense | 3,267 | 3,324 | 6,242 | 6,652 | |||||||||||||||||||
Interest expense (income), net | 70 | 12 | 135 | 27 | |||||||||||||||||||
Other (income) expense, net | 54 | (41) | 40 | (74) | |||||||||||||||||||
Income before income taxes | 1,456 | 1,249 | 3,171 | 2,810 | |||||||||||||||||||
Income tax expense | 205 | 134 | 402 | 328 | |||||||||||||||||||
NET INCOME | $ | 1,251 | $ | 1,115 | $ | 2,769 | $ | 2,482 | |||||||||||||||
Earnings per common share: | |||||||||||||||||||||||
Basic | $ | 0.80 | $ | 0.71 | $ | 1.77 | $ | 1.59 | |||||||||||||||
Diluted | $ | 0.78 | $ | 0.70 | $ | 1.73 | $ | 1.56 | |||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||
Basic | 1,573.0 | 1,560.6 | 1,567.4 | 1,561.5 | |||||||||||||||||||
Diluted | 1,609.5 | 1,594.4 | 1,601.9 | 1,596.0 |
THREE MONTHS ENDED NOVEMBER 30, | SIX MONTHS ENDED NOVEMBER 30, | ||||||||||||||||||||||
(Dollars in millions)
|
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Net income | $ | 1,251 | $ | 1,115 | $ | 2,769 | $ | 2,482 | |||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Change in net foreign currency translation adjustment | 78 | 28 | 396 | (61) | |||||||||||||||||||
Change in net gains (losses) on cash flow hedges | (103) | (155) | (761) | (119) | |||||||||||||||||||
Change in net gains (losses) on other | (3) | (1) | (8) | 1 | |||||||||||||||||||
Total other comprehensive income (loss), net of tax | (28) | (128) | (373) | (179) | |||||||||||||||||||
TOTAL COMPREHENSIVE INCOME | $ | 1,223 | $ | 987 | $ | 2,396 | $ | 2,303 |
NOVEMBER 30, | MAY 31, | ||||||||||
(In millions)
|
2020 | 2020 | |||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and equivalents | $ | 8,635 | $ | 8,348 | |||||||
Short-term investments | 3,177 | 439 | |||||||||
Accounts receivable, net | 3,713 | 2,749 | |||||||||
Inventories | 6,090 | 7,367 | |||||||||
Prepaid expenses and other current assets | 1,992 | 1,653 | |||||||||
Total current assets | 23,607 | 20,556 | |||||||||
Property, plant and equipment, net | 4,959 | 4,866 | |||||||||
Operating lease right-of-use assets, net | 3,086 | 3,097 | |||||||||
Identifiable intangible assets, net | 270 | 274 | |||||||||
Goodwill | 223 | 223 | |||||||||
Deferred income taxes and other assets | 2,691 | 2,326 | |||||||||
TOTAL ASSETS | $ | 34,836 | $ | 31,342 | |||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
Current liabilities: | |||||||||||
Current portion of long-term debt | $ | — | $ | 3 | |||||||
Notes payable | 41 | 248 | |||||||||
Accounts payable | 2,154 | 2,248 | |||||||||
Current portion of operating lease liabilities | 458 | 445 | |||||||||
Accrued liabilities | 6,030 | 5,184 | |||||||||
Income taxes payable | 188 | 156 | |||||||||
Total current liabilities | 8,871 | 8,284 | |||||||||
Long-term debt | 9,410 | 9,406 | |||||||||
Operating lease liabilities | 2,896 | 2,913 | |||||||||
Deferred income taxes and other liabilities | 3,019 | 2,684 | |||||||||
Redeemable preferred stock | — | — | |||||||||
Shareholders' equity: | |||||||||||
Common stock at stated value: | |||||||||||
Class A convertible — 305 and 315 shares outstanding
|
— | — | |||||||||
Class B — 1,270 and 1,243 shares outstanding
|
3 | 3 | |||||||||
Capital in excess of stated value | 9,336 | 8,299 | |||||||||
Accumulated other comprehensive income (loss) | (429) | (56) | |||||||||
Retained earnings (deficit) | 1,730 | (191) | |||||||||
Total shareholders' equity | 10,640 | 8,055 | |||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 34,836 | $ | 31,342 |
SIX MONTHS ENDED NOVEMBER 30, | ||||||||
(Dollars in millions)
|
2020 | 2019 | ||||||
Cash provided (used) by operations: | ||||||||
Net income | $ | 2,769 | $ | 2,482 | ||||
Adjustments to reconcile net income to net cash provided (used) by operations: | ||||||||
Depreciation | 361 | 343 | ||||||
Deferred income taxes | (177) | (134) | ||||||
Stock-based compensation | 325 | 190 | ||||||
Amortization, impairment and other | 103 | 19 | ||||||
Net foreign currency adjustments | (98) | 6 | ||||||
Changes in certain working capital components and other assets and liabilities: | ||||||||
(Increase) decrease in accounts receivable | (921) | (568) | ||||||
(Increase) decrease in inventories | 1,321 | (608) | ||||||
(Increase) decrease in prepaid expenses, operating lease right-of-use assets and other current and non-current assets | (163) | (67) | ||||||
Increase (decrease) in accounts payable, accrued liabilities, operating lease liabilities and other current and non-current liabilities | (165) | (357) | ||||||
Cash provided (used) by operations | 3,355 | 1,306 | ||||||
Cash provided (used) by investing activities: | ||||||||
Purchases of short-term investments | (4,505) | (1,157) | ||||||
Maturities of short-term investments | 802 | 19 | ||||||
Sales of short-term investments | 914 | 981 | ||||||
Additions to property, plant and equipment | (344) | (522) | ||||||
Other investing activities | 256 | (109) | ||||||
Cash provided (used) by investing activities | (2,877) | (788) | ||||||
Cash provided (used) by financing activities: | ||||||||
Increase (decrease) in notes payable | (37) | 291 | ||||||
Repayment of borrowings | (173) | (3) | ||||||
Proceeds from exercise of stock options and other stock issuances | 781 | 483 | ||||||
Repurchase of common stock | — | (1,921) | ||||||
Dividends — common and preferred | (769) | (689) | ||||||
Other financing activities | (94) | (29) | ||||||
Cash provided (used) by financing activities | (292) | (1,868) | ||||||
Effect of exchange rate changes on cash and equivalents | 101 | (46) | ||||||
Net increase (decrease) in cash and equivalents | 287 | (1,396) | ||||||
Cash and equivalents, beginning of period | 8,348 | 4,466 | ||||||
CASH AND EQUIVALENTS, END OF PERIOD | $ | 8,635 | $ | 3,070 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Non-cash additions to property, plant and equipment | $ | 118 | $ | 86 | ||||
Dividends declared and not paid | 435 | 384 |
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 August 31, 2020 | 315 | $ | — | 1,250 | $ | 3 | $ | 8,695 | $ | (401) | $ | 927 | $ | 9,224 | |||||||||||||||
Stock options exercised | 8 | 366 | 366 | ||||||||||||||||||||||||||
Conversion to Class B Common Stock | (10) | 10 | — | ||||||||||||||||||||||||||
Dividends on common stock ($0.275 per share)
|
(437) | (437) | |||||||||||||||||||||||||||
Issuance of shares to employees, net of shares withheld for employee taxes | 2 | 86 | (11) | 75 | |||||||||||||||||||||||||
Stock-based compensation | 189 | 189 | |||||||||||||||||||||||||||
Net income | 1,251 | 1,251 | |||||||||||||||||||||||||||
Other comprehensive income (loss) | (28) | (28) | |||||||||||||||||||||||||||
Balance at November 30, 2020 | 305 | $ | — | 1,270 | $ | 3 | $ | 9,336 | $ | (429) | $ | 1,730 | $ | 10,640 |
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 August 31, 2019 | 315 | $ | — | 1,245 | $ | 3 | $ | 7,296 | $ | 180 | $ | 1,721 | $ | 9,200 | |||||||||||||||
Stock options exercised | 7 | 265 | 265 | ||||||||||||||||||||||||||
Repurchase of Class B Common Stock | (10) | (47) | (875) | (922) | |||||||||||||||||||||||||
Dividends on common stock ($0.245 per share)
|
(383) | (383) | |||||||||||||||||||||||||||
Issuance of shares to employees, net of shares withheld for employee taxes | 2 | 95 | (1) | 94 | |||||||||||||||||||||||||
Stock-based compensation | 110 | 110 | |||||||||||||||||||||||||||
Net income | 1,115 | 1,115 | |||||||||||||||||||||||||||
Other comprehensive income (loss) | (128) | (128) | |||||||||||||||||||||||||||
Balance at November 30, 2019 | 315 | $ | — | 1,244 | $ | 3 | $ | 7,719 | $ | 52 | $ | 1,577 | $ | 9,351 |
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, 2020 | 315 | $ | — | 1,243 | $ | 3 | $ | 8,299 | $ | (56) | $ | (191) | $ | 8,055 | |||||||||||||||
Stock options exercised | 15 | 657 | 657 | ||||||||||||||||||||||||||
Conversion to Class B Common Stock | (10) | 10 | — | ||||||||||||||||||||||||||
Dividends on common stock ($0.520 per share) and preferred stock ($0.10 per share)
|
(820) | (820) | |||||||||||||||||||||||||||
Issuance of shares to employees, net of shares withheld for employee taxes | 2 | 55 | (28) | 27 | |||||||||||||||||||||||||
Stock-based compensation | 325 | 325 | |||||||||||||||||||||||||||
Net income | 2,769 | 2,769 | |||||||||||||||||||||||||||
Other comprehensive income (loss) | (373) | (373) | |||||||||||||||||||||||||||
Balance at November 30, 2020 | 305 | $ | — | 1,270 | $ | 3 | $ | 9,336 | $ | (429) | $ | 1,730 | $ | 10,640 |
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 | 11 | 381 | 381 | ||||||||||||||||||||||||||
Repurchase of Class B Common Stock | (22) | (102) | (1,815) | (1,917) | |||||||||||||||||||||||||
Dividends on common stock ($0.465 per share) and preferred stock ($0.10 per share)
|
(727) | (727) | |||||||||||||||||||||||||||
Issuance of shares to employees, net of shares withheld for employee taxes | 2 | 87 | (5) | 82 | |||||||||||||||||||||||||
Stock-based compensation | 190 | 190 | |||||||||||||||||||||||||||
Net income | 2,482 | 2,482 | |||||||||||||||||||||||||||
Other comprehensive income (loss) | (179) | (179) | |||||||||||||||||||||||||||
Adoption of ASC Topic 842 | (1) | (1) | |||||||||||||||||||||||||||
Balance at November 30, 2019 | 315 | $ | — | 1,244 | $ | 3 | $ | 7,719 | $ | 52 | $ | 1,577 | $ | 9,351 |
Note 1 | ||||||||
Note 2 | ||||||||
Note 3 | ||||||||
Note 4 | ||||||||
Note 5 | ||||||||
Note 6 | ||||||||
Note 7 | ||||||||
Note 8 | ||||||||
Note 9 | ||||||||
Note 10 | ||||||||
Note 11 | ||||||||
Note 12 | ||||||||
Note 13 | ||||||||
Note 14 |
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
NOTE 2 — INVENTORIES |
NOTE 3 — ACCRUED LIABILITIES |
NOVEMBER 30, | MAY 31, | ||||||||||
(Dollars in millions) | 2020 | 2020 | |||||||||
Compensation and benefits, excluding taxes | $ | 1,157 | $ | 1,248 | |||||||
Sales-related reserves | 1,126 | 1,178 | |||||||||
Fair value of derivatives | 485 | 190 | |||||||||
Allowance for expected loss on sale(1)
|
438 | 405 | |||||||||
Other | 2,824 | 2,163 | |||||||||
TOTAL ACCRUED LIABILITIES | $ | 6,030 | $ | 5,184 |
NOTE 4 — FAIR VALUE MEASUREMENTS |
NOVEMBER 30, 2020 | |||||||||||
(Dollars in millions)
|
ASSETS AT FAIR VALUE | CASH AND EQUIVALENTS | SHORT-TERM INVESTMENTS | ||||||||
Cash | $ | 886 | $ | 886 | $ | — | |||||
Level 1: | |||||||||||
U.S. Treasury securities | 3,136 | — | 3,136 | ||||||||
Level 2: | |||||||||||
Commercial paper and bonds | 39 | — | 39 | ||||||||
Money market funds | 6,767 | 6,767 | — | ||||||||
Time deposits | 983 | 982 | 1 | ||||||||
U.S. Agency securities | 1 | — | 1 | ||||||||
Total Level 2 | 7,790 | 7,749 | 41 | ||||||||
TOTAL | $ | 11,812 | $ | 8,635 | $ | 3,177 |
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 |
NOVEMBER 30, 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)
|
$ | 30 | $ | 27 | $ | 3 | $ | 579 | $ | 480 | $ | 99 | |||||||||||
Embedded derivatives | — | — | — | 5 | 5 | — | |||||||||||||||||
TOTAL | $ | 30 | $ | 27 | $ | 3 | $ | 584 | $ | 485 | $ | 99 |
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 |
NOTE 5 — SHORT-TERM BORROWINGS AND CREDIT LINES |
NOTE 6 — INCOME TAXES |
NOTE 7 — STOCK-BASED COMPENSATION |
THREE MONTHS ENDED NOVEMBER 30, | SIX MONTHS ENDED NOVEMBER 30, | ||||||||||||||||
(Dollars in millions)
|
2020 | 2019 | 2020 | 2019 | |||||||||||||
Stock options(1)
|
$ | 107 | $ | 64 | $ | 177 | $ | 106 | |||||||||
ESPPs | 17 | 11 | 35 | 24 | |||||||||||||
Restricted stock | 65 | 35 | 113 | 60 | |||||||||||||
TOTAL STOCK-BASED COMPENSATION EXPENSE | $ | 189 | $ | 110 | $ | 325 | $ | 190 |
SIX MONTHS ENDED NOVEMBER 30, | ||||||||
2020 | 2019 | |||||||
Dividend yield | 0.9 | % | 1.0 | % | ||||
Expected volatility | 27.3 | % | 23.0 | % | ||||
Weighted average expected life (in years) | 6.0 | 6.0 | ||||||
Risk-free interest rate | 0.4 | % | 1.5 | % |
NOTE 8 — EARNINGS PER SHARE |
THREE MONTHS ENDED NOVEMBER 30, | SIX MONTHS ENDED NOVEMBER 30, | ||||||||||||||||
(In millions, except per share data)
|
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net income available to common stockholders | $ | 1,251 | $ | 1,115 | $ | 2,769 | $ | 2,482 | |||||||||
Determination of shares: | |||||||||||||||||
Weighted average common shares outstanding | 1,573.0 | 1,560.6 | 1,567.4 | 1,561.5 | |||||||||||||
Assumed conversion of dilutive stock options and awards | 36.5 | 33.8 | 34.5 | 34.5 | |||||||||||||
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | 1,609.5 | 1,594.4 | 1,601.9 | 1,596.0 | |||||||||||||
Earnings per common share: | |||||||||||||||||
Basic | $ | 0.80 | $ | 0.71 | $ | 1.77 | $ | 1.59 | |||||||||
Diluted | $ | 0.78 | $ | 0.70 | $ | 1.73 | $ | 1.56 |
NOTE 9 — RISK MANAGEMENT AND DERIVATIVES |
DERIVATIVE ASSETS | ||||||||||||||
BALANCE SHEET LOCATION | NOVEMBER 30, | MAY 31, | ||||||||||||
(Dollars in millions)
|
2020 | 2020 | ||||||||||||
Derivatives formally designated as hedging instruments: | ||||||||||||||
Foreign exchange forwards and options | Prepaid expenses and other current assets | $ | 11 | $ | 43 | |||||||||
Foreign exchange forwards and options | Deferred income taxes and other assets | 2 | 1 | |||||||||||
Total derivatives formally designated as hedging instruments | 13 | 44 | ||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||
Foreign exchange forwards and options | Prepaid expenses and other current assets | 16 | 48 | |||||||||||
Embedded derivatives | Prepaid expenses and other current assets | — | 1 | |||||||||||
Foreign exchange forwards and options | Deferred income taxes and other assets | 1 | 2 | |||||||||||
Total derivatives not designated as hedging instruments | 17 | 51 | ||||||||||||
TOTAL DERIVATIVE ASSETS | $ | 30 | $ | 95 | ||||||||||
DERIVATIVE LIABILITIES | ||||||||||||||
BALANCE SHEET LOCATION | NOVEMBER 30, | MAY 31, | ||||||||||||
(Dollars in millions)
|
2020 | 2020 | ||||||||||||
Derivatives formally designated as hedging instruments: | ||||||||||||||
Foreign exchange forwards and options | Accrued liabilities | $ | 462 | $ | 173 | |||||||||
Foreign exchange forwards and options | Deferred income taxes and other liabilities | 99 | 17 | |||||||||||
Total derivatives formally designated as hedging instruments | 561 | 190 | ||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||
Foreign exchange forwards and options | Accrued liabilities | 18 | 15 | |||||||||||
Embedded derivatives | Accrued liabilities | 5 | 2 | |||||||||||
Total derivatives not designated as hedging instruments | 23 | 17 | ||||||||||||
TOTAL DERIVATIVE LIABILITIES | $ | 584 | $ | 207 |
THREE MONTHS ENDED NOVEMBER 30, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
(Dollars in millions)
|
TOTAL |
AMOUNT OF GAIN (LOSS)
ON CASH FLOW HEDGE ACTIVITY |
TOTAL |
AMOUNT OF GAIN (LOSS)
ON CASH FLOW HEDGE ACTIVITY |
|||||||||||||
Revenues | $ | 11,243 | $ | 26 | $ | 10,326 | $ | 1 | |||||||||
Cost of sales | 6,396 | 31 | 5,782 | 102 | |||||||||||||
Demand creation expense | 729 | — | 881 | (3) | |||||||||||||
Other (income) expense, net | 54 | (13) | (41) | 31 | |||||||||||||
Interest expense (income), net | 70 | (1) | 12 | (1) |
SIX MONTHS ENDED NOVEMBER 30, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
(Dollars in millions)
|
TOTAL |
AMOUNT OF GAIN (LOSS)
ON CASH FLOW HEDGE ACTIVITY |
TOTAL |
AMOUNT OF GAIN (LOSS)
ON CASH FLOW HEDGE ACTIVITY |
|||||||||||||
Revenues | $ | 21,837 | $ | 40 | $ | 20,986 | $ | 9 | |||||||||
Cost of sales | 12,249 | 145 | 11,571 | 177 | |||||||||||||
Demand creation expense | 1,406 | 1 | 1,899 | (3) | |||||||||||||
Other (income) expense, net | 40 | (5) | (74) | 77 | |||||||||||||
Interest expense (income), net | 135 | (3) | 27 | (3) |
(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)
|
|||||||||||||||||||||
THREE MONTHS ENDED NOVEMBER 30, |
LOCATION OF GAIN (LOSS)
RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME |
THREE MONTHS ENDED NOVEMBER 30, | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Derivatives designated as
cash flow hedges: |
|||||||||||||||||||||||
Foreign exchange forwards
and options |
$ | 6 | $ | (83) | Revenues | $ | 26 | $ | 1 | ||||||||||||||
Foreign exchange forwards
and options |
(69) | 37 | Cost of sales | 31 | 102 | ||||||||||||||||||
Foreign exchange forwards
and options |
2 | — | Demand creation expense | — | (3) | ||||||||||||||||||
Foreign exchange forwards
and options |
1 | 27 | Other (income) expense, net | (13) | 31 | ||||||||||||||||||
Interest rate swaps(2)
|
— | — | Interest expense (income), net | (1) | (1) | ||||||||||||||||||
Total designated cash
flow hedges |
$ | (60) | $ | (19) | $ | 43 | $ | 130 |
(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)
|
|||||||||||||||||||||
SIX MONTHS ENDED
NOVEMBER 30, |
LOCATION OF GAIN (LOSS)
RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME |
SIX MONTHS ENDED
NOVEMBER 30, |
|||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Derivatives designated as
cash flow hedges: |
|||||||||||||||||||||||
Foreign exchange forwards
and options |
$ | 6 | $ | (62) | Revenues | $ | 40 | $ | 9 | ||||||||||||||
Foreign exchange forwards
and options |
(440) | 146 | Cost of sales | 145 | 177 | ||||||||||||||||||
Foreign exchange forwards
and options |
3 | — | Demand creation expense | 1 | (3) | ||||||||||||||||||
Foreign exchange forwards
and options |
(159) | 60 | Other (income) expense, net | (5) | 77 | ||||||||||||||||||
Interest rate swaps(2)
|
— | — | Interest expense (income), net | (3) | (3) | ||||||||||||||||||
Total designated cash
flow hedges |
$ | (590) | $ | 144 | $ | 178 | $ | 257 |
AMOUNT OF GAIN (LOSS) RECOGNIZED
IN INCOME ON DERIVATIVES |
LOCATION OF GAIN (LOSS)
RECOGNIZED IN INCOME ON DERIVATIVES |
|||||||||||||||||||
THREE MONTHS ENDED NOVEMBER 30, | SIX MONTHS ENDED NOVEMBER 30, | |||||||||||||||||||
(Dollars in millions)
|
2020 | 2019 | 2020 | 2019 | ||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Foreign exchange forwards and options | $ | (49) | $ | (21) | $ | (87) | $ | (21) | Other (income) expense, net | |||||||||||
Embedded derivatives | (9) | (4) | (13) | (5) | Other (income) expense, net |
NOTE 10 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
(Dollars in millions)
|
FOREIGN CURRENCY TRANSLATION ADJUSTMENT(1)
|
CASH FLOW HEDGES |
NET INVESTMENT HEDGES(1)
|
OTHER | TOTAL | ||||||||||||
Balance at August 31, 2020 | $ | (176) | $ | (268) | $ | 115 | $ | (72) | $ | (401) | |||||||
Other comprehensive income (loss): | |||||||||||||||||
Other comprehensive gains (losses) before reclassifications(2)
|
79 | (64) | — | (2) | 13 | ||||||||||||
Reclassifications to net income of previously deferred (gains) losses(3)
|
(1) | (39) | — | (1) | (41) | ||||||||||||
Total other comprehensive income (loss) | 78 | (103) | — | (3) | (28) | ||||||||||||
Balance at November 30, 2020 | $ | (98) | $ | (371) | $ | 115 | $ | (75) | $ | (429) |
(Dollars in millions)
|
FOREIGN CURRENCY TRANSLATION ADJUSTMENT(1)
|
CASH FLOW HEDGES |
NET INVESTMENT HEDGES(1)
|
OTHER | TOTAL | ||||||||||||
Balance at August 31, 2019 | $ | (435) | $ | 556 | $ | 115 | $ | (56) | $ | 180 | |||||||
Other comprehensive income (loss): | |||||||||||||||||
Other comprehensive gains (losses) before reclassifications(2)
|
28 | (26) | — | (2) | — | ||||||||||||
Reclassifications to net income of previously deferred (gains) losses(3)
|
— | (129) | — | 1 | (128) | ||||||||||||
Total other comprehensive income (loss) | 28 | (155) | — | (1) | (128) | ||||||||||||
Balance at November 30, 2019 | $ | (407) | $ | 401 | $ | 115 | $ | (57) | $ | 52 |
(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)
|
397 | (590) | — | (15) | (208) | ||||||||||||
Reclassifications to net income of previously deferred (gains) losses(3)
|
(1) | (171) | — | 7 | (165) | ||||||||||||
Total other comprehensive income (loss) | 396 | (761) | — | (8) | (373) | ||||||||||||
Balance at November 30, 2020 | $ | (98) | $ | (371) | $ | 115 | $ | (75) | $ | (429) |
(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)
|
(61) | 137 | — | 1 | 77 | ||||||||||||
Reclassifications to net income of previously deferred (gains) losses(3)
|
— | (256) | — | — | (256) | ||||||||||||
Total other comprehensive income (loss) | (61) | (119) | — | 1 | (179) | ||||||||||||
Balance at November 30, 2019 | $ | (407) | $ | 401 | $ | 115 | $ | (57) | $ | 52 |
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 |
|||||||||||||||||||
THREE MONTHS ENDED NOVEMBER 30, | SIX MONTHS ENDED NOVEMBER 30, | |||||||||||||||||||
(Dollars in millions)
|
2020 | 2019 | 2020 | 2019 | ||||||||||||||||
Gains (losses) on foreign currency translation adjustment | $ | 1 | $ | — | $ | 1 | $ | — | Other expense (income), net | |||||||||||
Total before tax | 1 | — | 1 | |||||||||||||||||
Tax (expense) benefit | — | — | — | — | ||||||||||||||||
Gain (loss) net of tax | 1 | — | 1 | — | ||||||||||||||||
Gains (losses) on cash flow hedges: | ||||||||||||||||||||
Foreign exchange forwards and options | $ | 26 | $ | 1 | $ | 40 | $ | 9 | Revenues | |||||||||||
Foreign exchange forwards and options | 31 | 102 | 145 | 177 | Cost of sales | |||||||||||||||
Foreign exchange forwards and options | — | (3) | 1 | (3) | Demand creation expense | |||||||||||||||
Foreign exchange forwards and options | (13) | 31 | (5) | 77 | Other (income) expense, net | |||||||||||||||
Interest rate swaps | (1) | (1) | (3) | (3) | Interest expense (income), net | |||||||||||||||
Total before tax | 43 | 130 | 178 | 257 | ||||||||||||||||
Tax (expense) | (4) | (1) | (7) | (1) | ||||||||||||||||
Gain (loss) net of tax | 39 | 129 | 171 | 256 | ||||||||||||||||
Gains (losses) on other | 1 | (1) | (7) | — | Other (income) expense, net | |||||||||||||||
Total before tax | 1 | (1) | (7) | — | ||||||||||||||||
Tax (expense) | — | — | — | — | ||||||||||||||||
Gain (loss) net of tax | 1 | (1) | (7) | — | ||||||||||||||||
Total net gain (loss) reclassified for the period | $ | 41 | $ | 128 | $ | 165 | $ | 256 | ||||||||||||
NOTE 11 — REVENUES |
THREE MONTHS ENDED NOVEMBER 30, 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 | $ | 2,512 | $ | 1,731 | $ | 1,567 | $ | 991 | $ | — | $ | 6,801 | $ | 416 | $ | — | $ | 7,217 | |||||||||||
Apparel | 1,368 | 1,104 | 681 | 432 | — | 3,585 | 32 | — | 3,617 | ||||||||||||||||||||
Equipment | 126 | 123 | 50 | 48 | — | 347 | 7 | — | 354 | ||||||||||||||||||||
Other | — | — | — | — | 8 | 8 | 21 | 26 | 55 | ||||||||||||||||||||
TOTAL REVENUES | $ | 4,006 | $ | 2,958 | $ | 2,298 | $ | 1,471 | $ | 8 | $ | 10,741 | $ | 476 | $ | 26 | $ | 11,243 | |||||||||||
Revenues by: | |||||||||||||||||||||||||||||
Sales to Wholesale Customers | $ | 2,354 | $ | 1,985 | $ | 1,159 | $ | 925 | $ | — | $ | 6,423 | $ | 259 | $ | — | $ | 6,682 | |||||||||||
Sales through Direct to Consumer | 1,652 | 973 | 1,139 | 546 | — | 4,310 | 196 | — | 4,506 | ||||||||||||||||||||
Other | — | — | — | — | 8 | 8 | 21 | 26 | 55 | ||||||||||||||||||||
TOTAL REVENUES | $ | 4,006 | $ | 2,958 | $ | 2,298 | $ | 1,471 | $ | 8 | $ | 10,741 | $ | 476 | $ | 26 | $ | 11,243 |
THREE MONTHS ENDED NOVEMBER 30, 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 | $ | 2,426 | $ | 1,536 | $ | 1,247 | $ | 997 | $ | — | $ | 6,206 | $ | 416 | $ | — | $ | 6,622 | |||||||||||
Apparel | 1,417 | 897 | 563 | 410 | — | 3,287 | 30 | — | 3,317 | ||||||||||||||||||||
Equipment | 139 | 104 | 37 | 61 | — | 341 | 6 | — | 347 | ||||||||||||||||||||
Other | — | — | — | — | 10 | 10 | 28 | 2 | 40 | ||||||||||||||||||||
TOTAL REVENUES | $ | 3,982 | $ | 2,537 | $ | 1,847 | $ | 1,468 | $ | 10 | $ | 9,844 | $ | 480 | $ | 2 | $ | 10,326 | |||||||||||
Revenues by: | |||||||||||||||||||||||||||||
Sales to Wholesale Customers | $ | 2,734 | $ | 1,794 | $ | 1,028 | $ | 1,022 | $ | — | $ | 6,578 | $ | 286 | $ | — | $ | 6,864 | |||||||||||
Sales through Direct to Consumer | 1,248 | 743 | 819 | 446 | — | 3,256 | 166 | — | 3,422 | ||||||||||||||||||||
Other | — | — | — | — | 10 | 10 | 28 | 2 | 40 | ||||||||||||||||||||
TOTAL REVENUES | $ | 3,982 | $ | 2,537 | $ | 1,847 | $ | 1,468 | $ | 10 | $ | 9,844 | $ | 480 | $ | 2 | $ | 10,326 |
SIX MONTHS ENDED NOVEMBER 30, 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 | $ | 5,469 | $ | 3,533 | $ | 2,818 | $ | 1,749 | $ | — | $ | 13,569 | $ | 929 | $ | — | $ | 14,498 | |||||||||||
Apparel | 2,493 | 2,075 | 1,159 | 733 | — | 6,460 | 54 | — | 6,514 | ||||||||||||||||||||
Equipment | 269 | 260 | 101 | 88 | — | 718 | 16 | — | 734 | ||||||||||||||||||||
Other | — | — | — | — | 12 | 12 | 40 | 39 | 91 | ||||||||||||||||||||
TOTAL REVENUES | $ | 8,231 | $ | 5,868 | $ | 4,078 | $ | 2,570 | $ | 12 | $ | 20,759 | $ | 1,039 | $ | 39 | $ | 21,837 | |||||||||||
Revenues by: | |||||||||||||||||||||||||||||
Sales to Wholesale Customers | $ | 5,073 | $ | 3,958 | $ | 2,123 | $ | 1,633 | $ | — | $ | 12,787 | $ | 632 | $ | — | $ | 13,419 | |||||||||||
Sales through Direct to Consumer | 3,158 | 1,910 | 1,955 | 937 | — | 7,960 | 367 | — | 8,327 | ||||||||||||||||||||
Other | — | — | — | — | 12 | 12 | 40 | 39 | 91 | ||||||||||||||||||||
TOTAL REVENUES | $ | 8,231 | $ | 5,868 | $ | 4,078 | $ | 2,570 | $ | 12 | $ | 20,759 | $ | 1,039 | $ | 39 | $ | 21,837 |
SIX MONTHS ENDED NOVEMBER 30, 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 | $ | 5,095 | $ | 3,294 | $ | 2,411 | $ | 1,927 | $ | — | $ | 12,727 | $ | 912 | $ | — | $ | 13,639 | |||||||||||
Apparel | 2,848 | 1,766 | 1,028 | 766 | — | 6,408 | 56 | — | 6,464 | ||||||||||||||||||||
Equipment | 332 | 250 | 87 | 120 | — | 789 | 15 | — | 804 | ||||||||||||||||||||
Other | — | — | — | — | 16 | 16 | 52 | 11 | 79 | ||||||||||||||||||||
TOTAL REVENUES | $ | 8,275 | $ | 5,310 | $ | 3,526 | $ | 2,813 | $ | 16 | $ | 19,940 | $ | 1,035 | $ | 11 | $ | 20,986 | |||||||||||
Revenues by: | |||||||||||||||||||||||||||||
Sales to Wholesale Customers | $ | 5,598 | $ | 3,836 | $ | 2,014 | $ | 1,972 | $ | — | $ | 13,420 | $ | 653 | $ | — | $ | 14,073 | |||||||||||
Sales through Direct to Consumer | 2,677 | 1,474 | 1,512 | 841 | — | 6,504 | 330 | — | 6,834 | ||||||||||||||||||||
Other | — | — | — | — | 16 | 16 | 52 | 11 | 79 | ||||||||||||||||||||
TOTAL REVENUES | $ | 8,275 | $ | 5,310 | $ | 3,526 | $ | 2,813 | $ | 16 | $ | 19,940 | $ | 1,035 | $ | 11 | $ | 20,986 |
NOTE 12 — OPERATING SEGMENTS |
THREE MONTHS ENDED NOVEMBER 30, | SIX MONTHS ENDED NOVEMBER 30, | ||||||||||||||||||||||
(Dollars in millions)
|
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
REVENUES | |||||||||||||||||||||||
North America | $ | 4,006 | $ | 3,982 | $ | 8,231 | $ | 8,275 | |||||||||||||||
Europe, Middle East & Africa | 2,958 | 2,537 | 5,868 | 5,310 | |||||||||||||||||||
Greater China | 2,298 | 1,847 | 4,078 | 3,526 | |||||||||||||||||||
Asia Pacific & Latin America | 1,471 | 1,468 | 2,570 | 2,813 | |||||||||||||||||||
Global Brand Divisions | 8 | 10 | 12 | 16 | |||||||||||||||||||
Total NIKE Brand | 10,741 | 9,844 | 20,759 | 19,940 | |||||||||||||||||||
Converse | 476 | 480 | 1,039 | 1,035 | |||||||||||||||||||
Corporate | 26 | 2 | 39 | 11 | |||||||||||||||||||
TOTAL NIKE, INC. REVENUES | $ | 11,243 | $ | 10,326 | $ | 21,837 | $ | 20,986 | |||||||||||||||
EARNINGS BEFORE INTEREST AND TAXES | |||||||||||||||||||||||
North America | $ | 1,023 | $ | 875 | $ | 2,325 | $ | 1,975 | |||||||||||||||
Europe, Middle East & Africa | 660 | 510 | 1,352 | 1,119 | |||||||||||||||||||
Greater China | 891 | 694 | 1,579 | 1,363 | |||||||||||||||||||
Asia Pacific & Latin America | 424 | 377 | 704 | 718 | |||||||||||||||||||
Global Brand Divisions | (841) | (872) | (1,694) | (1,729) | |||||||||||||||||||
Converse | 87 | 90 | 255 | 228 | |||||||||||||||||||
Corporate | (718) | (413) | (1,215) | (837) | |||||||||||||||||||
Interest expense (income), net | 70 | 12 | 135 | 27 | |||||||||||||||||||
TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES | $ | 1,456 | $ | 1,249 | $ | 3,171 | $ | 2,810 |
NOVEMBER 30, | MAY 31, | ||||||||||
(Dollars in millions)
|
2020 | 2020 | |||||||||
ACCOUNTS RECEIVABLE, NET | |||||||||||
North America | $ | 1,236 | $ | 1,020 | |||||||
Europe, Middle East & Africa | 1,350 | 712 | |||||||||
Greater China | 250 | 321 | |||||||||
Asia Pacific & Latin America(1)
|
591 | 425 | |||||||||
Global Brand Divisions | 96 | 65 | |||||||||
Total NIKE Brand | 3,523 | 2,543 | |||||||||
Converse | 153 | 149 | |||||||||
Corporate | 37 | 57 | |||||||||
TOTAL ACCOUNTS RECEIVABLE, NET | $ | 3,713 | $ | 2,749 | |||||||
INVENTORIES | |||||||||||
North America | $ | 2,401 | $ | 3,077 | |||||||
Europe, Middle East & Africa | 1,589 | 2,070 | |||||||||
Greater China | 1,137 | 882 | |||||||||
Asia Pacific & Latin America(1)
|
620 | 770 | |||||||||
Global Brand Divisions | 131 | 137 | |||||||||
Total NIKE Brand | 5,878 | 6,936 | |||||||||
Converse | 315 | 341 | |||||||||
Corporate | (103) | 90 | |||||||||
TOTAL INVENTORIES | $ | 6,090 | $ | 7,367 |
NOVEMBER 30, | MAY 31, | ||||||||||
(Dollars in millions)
|
2020 | 2020 | |||||||||
PROPERTY, PLANT AND EQUIPMENT, NET | |||||||||||
North America | $ | 632 | $ | 645 | |||||||
Europe, Middle East & Africa | 934 | 885 | |||||||||
Greater China | 246 | 214 | |||||||||
Asia Pacific & Latin America(1)
|
312 | 296 | |||||||||
Global Brand Divisions | 866 | 830 | |||||||||
Total NIKE Brand | 2,990 | 2,870 | |||||||||
Converse | 72 | 80 | |||||||||
Corporate | 1,897 | 1,916 | |||||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET | $ | 4,959 | $ | 4,866 |
NOTE 13 — ACQUISITIONS AND DIVESTITURES |
NOTE 14 —RESTRUCTURING |
(Dollars in millions) | |||||
Balance at August 31, 2020 | $ | 34 | |||
Employee termination costs | 137 | ||||
Cash payments | (67) | ||||
Balance at November 30, 2020 | $ | 104 |
(Dollars in millions) | |||||
Balance at May 31, 2020 | $ | — | |||
Employee termination costs | 175 | ||||
Cash payments | (71) | ||||
Balance at November 30, 2020 | $ | 104 |
THREE MONTHS ENDED NOVEMBER 30, | SIX MONTHS ENDED NOVEMBER 30, | ||||||||||||||||||||||
(Dollars in millions, except per share data) | 2020 | 2019 | % CHANGE | 2020 | 2019 | % CHANGE | |||||||||||||||||
Revenues | $ | 11,243 | $ | 10,326 | 9 | % | $ | 21,837 | $ | 20,986 | 4 | % | |||||||||||
Cost of sales | 6,396 | 5,782 | 11 | % | 12,249 | 11,571 | 6 | % | |||||||||||||||
Gross profit | 4,847 | 4,544 | 7 | % | 9,588 | 9,415 | 2 | % | |||||||||||||||
Gross margin | 43.1 | % | 44.0 | % | 43.9 | % | 44.9 | % | |||||||||||||||
Demand creation expense | 729 | 881 | -17 | % | 1,406 | 1,899 | -26 | % | |||||||||||||||
Operating overhead expense | 2,538 | 2,443 | 4 | % | 4,836 | 4,753 | 2 | % | |||||||||||||||
Total selling and administrative expense | 3,267 | 3,324 | -2 | % | 6,242 | 6,652 | -6 | % | |||||||||||||||
% of revenues | 29.1 | % | 32.2 | % | 28.6 | % | 31.7 | % | |||||||||||||||
Interest expense (income), net | 70 | 12 | — | 135 | 27 | — | |||||||||||||||||
Other (income) expense, net | 54 | (41) | — | 40 | (74) | — | |||||||||||||||||
Income before income taxes | 1,456 | 1,249 | 17 | % | 3,171 | 2,810 | 13 | % | |||||||||||||||
Income tax expense | 205 | 134 | 53 | % | 402 | 328 | 23 | % | |||||||||||||||
Effective tax rate | 14.1 | % | 10.7 | % | 12.7 | % | 11.7 | % | |||||||||||||||
NET INCOME | $ | 1,251 | $ | 1,115 | 12 | % | $ | 2,769 | $ | 2,482 | 12 | % | |||||||||||
Diluted earnings per common share | $ | 0.78 | $ | 0.70 | 11 | % | $ | 1.73 | $ | 1.56 | 11 | % |
THREE MONTHS ENDED NOVEMBER 30, | SIX MONTHS ENDED NOVEMBER 30, | ||||||||||||||||||||||||||||
(Dollars in millions)
|
2020 | 2019 | % CHANGE |
% CHANGE EXCLUDING CURRENCY CHANGES(1)
|
2020 | 2019 | % CHANGE |
% CHANGE EXCLUDING CURRENCY CHANGES(1)
|
|||||||||||||||||||||
NIKE, Inc. Revenues: | |||||||||||||||||||||||||||||
NIKE Brand Revenues by: | |||||||||||||||||||||||||||||
Footwear | $ | 6,801 | $ | 6,206 | 10 | % | 8 | % | $ | 13,569 | $ | 12,727 | 7 | % | 7 | % | |||||||||||||
Apparel | 3,585 | 3,287 | 9 | % | 7 | % | 6,460 | 6,408 | 1 | % | 0 | % | |||||||||||||||||
Equipment | 347 | 341 | 2 | % | 1 | % | 718 | 789 | -9 | % | -9 | % | |||||||||||||||||
Global Brand Divisions(2)
|
8 | 10 | -20 | % | -20 | % | 12 | 16 | -25 | % | -25 | % | |||||||||||||||||
Total NIKE Brand Revenues | 10,741 | 9,844 | 9 | % | 8 | % | 20,759 | 19,940 | 4 | % | 4 | % | |||||||||||||||||
Converse | 476 | 480 | -1 | % | -4 | % | 1,039 | 1,035 | 0 | % | -1 | % | |||||||||||||||||
Corporate(3)
|
26 | 2 | — | — | 39 | 11 | — | — | |||||||||||||||||||||
TOTAL NIKE, INC. REVENUES | $ | 11,243 | $ | 10,326 | 9 | % | 7 | % | $ | 21,837 | $ | 20,986 | 4 | % | 4 | % | |||||||||||||
Supplemental NIKE Brand Revenues Details: | |||||||||||||||||||||||||||||
NIKE Brand Revenues by: | |||||||||||||||||||||||||||||
Sales to Wholesale Customers | $ | 6,423 | $ | 6,578 | -2 | % | -4 | % | $ | 12,787 | $ | 13,420 | -5 | % | -5 | % | |||||||||||||
Sales through NIKE Direct | 4,310 | 3,256 | 32 | % | 30 | % | 7,960 | 6,504 | 22 | % | 22 | % | |||||||||||||||||
Global Brand Divisions(2)
|
8 | 10 | -20 | % | -20 | % | 12 | 16 | -25 | % | -25 | % | |||||||||||||||||
TOTAL NIKE BRAND REVENUES | $ | 10,741 | $ | 9,844 | 9 | % | 8 | % | $ | 20,759 | $ | 19,940 | 4 | % | 4 | % |
THREE MONTHS ENDED NOVEMBER 30, | SIX MONTHS ENDED NOVEMBER 30, | ||||||||||||||||||||||
(Dollars in millions)
|
2020 | 2019 | % CHANGE | 2020 | 2019 | % CHANGE | |||||||||||||||||
Gross Profit | $ | 4,847 | $ | 4,544 | 7 | % | $ | 9,588 | $ | 9,415 | 2 | % | |||||||||||
Gross Margin | 43.1 | % | 44.0 | % | (90) bps | 43.9 | % | 44.9 | % | (100) bps |
THREE MONTHS ENDED NOVEMBER 30, | SIX MONTHS ENDED NOVEMBER 30, | ||||||||||||||||||||||
(Dollars in millions)
|
2020 | 2019 | % CHANGE | 2020 | 2019 | % CHANGE | |||||||||||||||||
Demand creation expense(1)
|
$ | 729 | $ | 881 | -17 | % | $ | 1,406 | $ | 1,899 | -26 | % | |||||||||||
Operating overhead expense | 2,538 | 2,443 | 4 | % | 4,836 | 4,753 | 2 | % | |||||||||||||||
Total selling and administrative expense | $ | 3,267 | $ | 3,324 | -2 | % | $ | 6,242 | $ | 6,652 | -6 | % | |||||||||||
% of revenues | 29.1 | % | 32.2 | % | (310) bps | 28.6 | % | 31.7 | % | (310) bps |
THREE MONTHS ENDED NOVEMBER 30, | SIX MONTHS ENDED NOVEMBER 30, | ||||||||||||||||
(Dollars in millions)
|
2020 | 2019 | 2020 | 2019 | |||||||||||||
Other (income) expense, net | $ | 54 | $ | (41) | $ | 40 | $ | (74) |
THREE MONTHS ENDED NOVEMBER 30, | SIX MONTHS ENDED NOVEMBER 30, | ||||||||||||||||||||||
2020 | 2019 | % CHANGE | 2020 | 2019 | % CHANGE | ||||||||||||||||||
Effective tax rate | 14.1 | % | 10.7 | % | 340 bps | 12.7 | % | 11.7 | % | 100 bps |
THREE MONTHS ENDED NOVEMBER 30, | SIX MONTHS ENDED NOVEMBER 30, | ||||||||||||||||||||||||||||
(Dollars in millions)
|
2020 | 2019 | % CHANGE |
% CHANGE EXCLUDING CURRENCY CHANGES(1)
|
2020 | 2019 | % CHANGE |
% CHANGE EXCLUDING CURRENCY CHANGES(1)
|
|||||||||||||||||||||
North America | $ | 4,006 | $ | 3,982 | 1 | % | 1 | % | $ | 8,231 | $ | 8,275 | -1 | % | 0 | % | |||||||||||||
Europe, Middle East & Africa | 2,958 | 2,537 | 17 | % | 12 | % | 5,868 | 5,310 | 11 | % | 8 | % | |||||||||||||||||
Greater China | 2,298 | 1,847 | 24 | % | 19 | % | 4,078 | 3,526 | 16 | % | 14 | % | |||||||||||||||||
Asia Pacific & Latin America | 1,471 | 1,468 | 0 | % | 5 | % | 2,570 | 2,813 | -9 | % | -3 | % | |||||||||||||||||
Global Brand Divisions(2)
|
8 | 10 | -20 | % | -20 | % | 12 | 16 | -25 | % | -25 | % | |||||||||||||||||
TOTAL NIKE BRAND | 10,741 | 9,844 | 9 | % | 8 | % | 20,759 | 19,940 | 4 | % | 4 | % | |||||||||||||||||
Converse | 476 | 480 | -1 | % | -4 | % | 1,039 | 1,035 | 0 | % | -1 | % | |||||||||||||||||
Corporate(3)
|
26 | 2 | — | — | 39 | 11 | — | — | |||||||||||||||||||||
TOTAL NIKE, INC. REVENUES | $ | 11,243 | $ | 10,326 | 9 | % | 7 | % | $ | 21,837 | $ | 20,986 | 4 | % | 4 | % |
THREE MONTHS ENDED NOVEMBER 30, | SIX MONTHS ENDED NOVEMBER 30, | ||||||||||||||||||||||
(Dollars in millions)
|
2020 | 2019 | % CHANGE | 2020 | 2019 | % CHANGE | |||||||||||||||||
North America | $ | 1,023 | $ | 875 | 17 | % | $ | 2,325 | $ | 1,975 | 18 | % | |||||||||||
Europe, Middle East & Africa | 660 | 510 | 29 | % | 1,352 | 1,119 | 21 | % | |||||||||||||||
Greater China | 891 | 694 | 28 | % | 1,579 | 1,363 | 16 | % | |||||||||||||||
Asia Pacific & Latin America | 424 | 377 | 12 | % | 704 | 718 | -2 | % | |||||||||||||||
Global Brand Divisions | (841) | (872) | 4 | % | (1,694) | (1,729) | 2 | % | |||||||||||||||
TOTAL NIKE BRAND(1)
|
2,157 | 1,584 | 36 | % | 4,266 | 3,446 | 24 | % | |||||||||||||||
Converse | 87 | 90 | -3 | % | 255 | 228 | 12 | % | |||||||||||||||
Corporate | (718) | (413) | -74 | % | (1,215) | (837) | -45 | % | |||||||||||||||
TOTAL NIKE, INC. EARNINGS BEFORE INTEREST AND TAXES(1)
|
1,526 | 1,261 | 21 | % | 3,306 | 2,837 | 17 | % | |||||||||||||||
Interest expense (income), net | 70 | 12 | — | 135 | 27 | — | |||||||||||||||||
TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES | $ | 1,456 | $ | 1,249 | 17 | % | $ | 3,171 | $ | 2,810 | 13 | % |
THREE MONTHS ENDED NOVEMBER 30, | SIX MONTHS ENDED NOVEMBER 30, | ||||||||||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | 2020 | 2019 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | |||||||||||||||||||||
Revenues by: | |||||||||||||||||||||||||||||
Footwear | $ | 2,512 | $ | 2,426 | 4 | % | 4 | % | $ | 5,469 | $ | 5,095 | 7 | % | 7 | % | |||||||||||||
Apparel | 1,368 | 1,417 | -3 | % | -3 | % | 2,493 | 2,848 | -12 | % | -12 | % | |||||||||||||||||
Equipment | 126 | 139 | -9 | % | -10 | % | 269 | 332 | -19 | % | -19 | % | |||||||||||||||||
TOTAL REVENUES | $ | 4,006 | $ | 3,982 | 1 | % | 1 | % | $ | 8,231 | $ | 8,275 | -1 | % | 0 | % | |||||||||||||
Revenues by: | |||||||||||||||||||||||||||||
Sales to Wholesale Customers | $ | 2,354 | $ | 2,734 | -14 | % | -14 | % | $ | 5,073 | $ | 5,598 | -9 | % | -9 | % | |||||||||||||
Sales through NIKE Direct | 1,652 | 1,248 | 32 | % | 32 | % | 3,158 | 2,677 | 18 | % | 18 | % | |||||||||||||||||
TOTAL REVENUES | $ | 4,006 | $ | 3,982 | 1 | % | 1 | % | $ | 8,231 | $ | 8,275 | -1 | % | 0 | % | |||||||||||||
EARNINGS BEFORE INTEREST AND TAXES | $ | 1,023 | $ | 875 | 17 | % | $ | 2,325 | $ | 1,975 | 18 | % |
THREE MONTHS ENDED NOVEMBER 30, | SIX MONTHS ENDED NOVEMBER 30, | ||||||||||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | 2020 | 2019 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | |||||||||||||||||||||
Revenues by: | |||||||||||||||||||||||||||||
Footwear | $ | 1,731 | $ | 1,536 | 13 | % | 8 | % | $ | 3,533 | $ | 3,294 | 7 | % | 5 | % | |||||||||||||
Apparel | 1,104 | 897 | 23 | % | 18 | % | 2,075 | 1,766 | 17 | % | 15 | % | |||||||||||||||||
Equipment | 123 | 104 | 18 | % | 16 | % | 260 | 250 | 4 | % | 3 | % | |||||||||||||||||
TOTAL REVENUES | $ | 2,958 | $ | 2,537 | 17 | % | 12 | % | $ | 5,868 | $ | 5,310 | 11 | % | 8 | % | |||||||||||||
Revenues by: | |||||||||||||||||||||||||||||
Sales to Wholesale Customers | $ | 1,985 | $ | 1,794 | 11 | % | 6 | % | $ | 3,958 | $ | 3,836 | 3 | % | 1 | % | |||||||||||||
Sales through NIKE Direct | 973 | 743 | 31 | % | 25 | % | 1,910 | 1,474 | 30 | % | 26 | % | |||||||||||||||||
TOTAL REVENUES | $ | 2,958 | $ | 2,537 | 17 | % | 12 | % | $ | 5,868 | $ | 5,310 | 11 | % | 8 | % | |||||||||||||
EARNINGS BEFORE INTEREST AND TAXES | $ | 660 | $ | 510 | 29 | % | $ | 1,352 | $ | 1,119 | 21 | % |
THREE MONTHS ENDED NOVEMBER 30, | SIX MONTHS ENDED NOVEMBER 30, | ||||||||||||||||||||||||||||
(Dollars in millions) | 2020 | 2019 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | 2020 | 2019 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | |||||||||||||||||||||
Revenues by: | |||||||||||||||||||||||||||||
Footwear | $ | 1,567 | $ | 1,247 | 26 | % | 20 | % | $ | 2,818 | $ | 2,411 | 17 | % | 15 | % | |||||||||||||
Apparel | 681 | 563 | 21 | % | 16 | % | 1,159 | 1,028 | 13 | % | 11 | % | |||||||||||||||||
Equipment | 50 | 37 | 35 | % | 29 | % | 101 | 87 | 16 | % | 14 | % | |||||||||||||||||
TOTAL REVENUES | $ | 2,298 | $ | 1,847 | 24 | % | 19 | % | $ | 4,078 | $ | 3,526 | 16 | % | 14 | % | |||||||||||||
Revenues by: | |||||||||||||||||||||||||||||
Sales to Wholesale Customers | $ | 1,159 | $ | 1,028 | 13 | % | 8 | % | $ | 2,123 | $ | 2,014 | 5 | % | 4 | % | |||||||||||||
Sales through NIKE Direct | 1,139 | 819 | 39 | % | 33 | % | 1,955 | 1,512 | 29 | % | 27 | % | |||||||||||||||||
TOTAL REVENUES | $ | 2,298 | $ | 1,847 | 24 | % | 19 | % | $ | 4,078 | $ | 3,526 | 16 | % | 14 | % | |||||||||||||
EARNINGS BEFORE INTEREST AND TAXES | $ | 891 | $ | 694 | 28 | % | $ | 1,579 | $ | 1,363 | 16 | % |
THREE MONTHS ENDED NOVEMBER 30, | SIX MONTHS ENDED NOVEMBER 30, | ||||||||||||||||||||||||||||
(Dollars in millions)
|
2020 | 2019 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | 2020 | 2019 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | |||||||||||||||||||||
Revenues by: | |||||||||||||||||||||||||||||
Footwear | $ | 991 | $ | 997 | -1 | % | 5 | % | $ | 1,749 | $ | 1,927 | -9 | % | -3 | % | |||||||||||||
Apparel | 432 | 410 | 5 | % | 9 | % | 733 | 766 | -4 | % | 0 | % | |||||||||||||||||
Equipment | 48 | 61 | -21 | % | -17 | % | 88 | 120 | -27 | % | -22 | % | |||||||||||||||||
TOTAL REVENUES | $ | 1,471 | $ | 1,468 | 0 | % | 5 | % | $ | 2,570 | $ | 2,813 | -9 | % | -3 | % | |||||||||||||
Revenues by: | |||||||||||||||||||||||||||||
Sales to Wholesale Customers | $ | 925 | $ | 1,022 | -9 | % | -5 | % | $ | 1,633 | $ | 1,972 | -17 | % | -11 | % | |||||||||||||
Sales through NIKE Direct | 546 | 446 | 22 | % | 27 | % | 937 | 841 | 11 | % | 16 | % | |||||||||||||||||
TOTAL REVENUES | $ | 1,471 | $ | 1,468 | 0 | % | 5 | % | $ | 2,570 | $ | 2,813 | -9 | % | -3 | % | |||||||||||||
EARNINGS BEFORE INTEREST AND TAXES | $ | 424 | $ | 377 | 12 | % | $ | 704 | $ | 718 | -2 | % |
THREE MONTHS ENDED NOVEMBER 30, | SIX MONTHS ENDED NOVEMBER 30, | ||||||||||||||||||||||||||||
(Dollars in millions)
|
2020 | 2019 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | 2020 | 2019 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | |||||||||||||||||||||
Revenues | $ | 8 | $ | 10 | -20 | % | -20 | % | $ | 12 | $ | 16 | -25 | % | -25 | % | |||||||||||||
Earnings (Loss) Before Interest and Taxes | $ | (841) | $ | (872) | 4 | % | $ | (1,694) | $ | (1,729) | 2 | % |
THREE MONTHS ENDED NOVEMBER 30, | SIX MONTHS ENDED NOVEMBER 30, | ||||||||||||||||||||||||||||
(Dollars in millions)
|
2020 | 2019 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | 2020 | 2019 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | |||||||||||||||||||||
Revenues by: | |||||||||||||||||||||||||||||
Footwear | $ | 416 | $ | 416 | 0 | % | -3 | % | $ | 929 | $ | 912 | 2 | % | 1 | % | |||||||||||||
Apparel | 32 | 30 | 7 | % | 0 | % | 54 | 56 | -4 | % | -6 | % | |||||||||||||||||
Equipment | 7 | 6 | 17 | % | 19 | % | 16 | 15 | 7 | % | 8 | % | |||||||||||||||||
Other(1)
|
21 | 28 | -25 | % | -19 | % | 40 | 52 | -23 | % | -18 | % | |||||||||||||||||
TOTAL REVENUES | $ | 476 | $ | 480 | -1 | % | -4 | % | $ | 1,039 | $ | 1,035 | 0 | % | -1 | % | |||||||||||||
Revenues by: | |||||||||||||||||||||||||||||
Sales to Wholesale Customers | $ | 259 | $ | 286 | -9 | % | -13 | % | $ | 632 | $ | 653 | -3 | % | -5 | % | |||||||||||||
Sales through Direct to Consumer | 196 | 166 | 18 | % | 15 | % | 367 | 330 | 11 | % | 10 | % | |||||||||||||||||
Other(1)
|
21 | 28 | -25 | % | -19 | % | 40 | 52 | -23 | % | -18 | % | |||||||||||||||||
TOTAL REVENUES | $ | 476 | $ | 480 | -1 | % | -4 | % | $ | 1,039 | $ | 1,035 | 0 | % | -1 | % | |||||||||||||
EARNINGS BEFORE INTEREST AND TAXES | $ | 87 | $ | 90 | -3 | % | $ | 255 | $ | 228 | 12 | % |
THREE MONTHS ENDED NOVEMBER 30, | SIX MONTHS ENDED NOVEMBER 30, | ||||||||||||||||||||||
(Dollars in millions)
|
2020 | 2019 | % CHANGE | 2020 | 2019 | % CHANGE | |||||||||||||||||
Revenues | $ | 26 | $ | 2 | — | $ | 39 | $ | 11 | — | |||||||||||||
Earnings (Loss) Before Interest and Taxes | $ | (718) | $ | (413) | -74 | % | $ | (1,215) | $ | (837) | -45 | % |
3. | Exhibits: | ||||
3.1 | |||||
3.2 | |||||
4.1 | |||||
4.2 | |||||
10.1 | |||||
31.1† | |||||
31.2† | |||||
32.1† | |||||
32.2† | |||||
101.INS | XBRL Instance Document. | ||||
101.SCH | XBRL Taxonomy Extension Schema Document. | ||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | ||||
101.DEF | XBRL Taxonomy Extension Definition Document. | ||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | ||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | ||||
104 | Cover Page Interactive Data File (formatted in iXBRL Exhibit 101) |
NIKE, INC.
an Oregon Corporation
|
||||||||
By: |
/s/ MATTHEW FRIEND
Matthew Friend
Chief Financial Officer and Authorized Officer
|
|||||||
Date: | January 5, 2021 |
1 Year Nike Chart |
1 Month Nike Chart |
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