Select Results:
- Fourth quarter revenues up 8 percent versus prior year to $5.1 billion; up 4 percent excluding currency changes
- Fiscal 2010 revenues down 1 percent from prior year to $19.0 billion; down 2 percent excluding currency changes
- Fourth quarter diluted EPS of $1.06 up 51 percent versus prior year; excluding non-comparable items, diluted EPS up 7 percent
- Fiscal 2010 diluted EPS of $3.86 up 27 percent from prior year; excluding non-comparable items diluted EPS up 1 percent
- Worldwide futures orders up 7 percent; up 10 percent excluding currency changes
- Inventories down 13 percent versus prior year
BEAVERTON, Ore., Jun 23, 2010 (BUSINESS WIRE) --NIKE, Inc. (NYSE:NKE)
today reported financial results for its 2010 fiscal fourth quarter and
full year ended May 31, 2010. Fourth quarter revenues increased 8
percent to $5.1 billion from $4.7 billion for the same period last year.
Excluding changes in currency exchange rates, net revenues were up 4
percent compared to the same period last year. For the full year,
revenues declined 1 percent to $19.0 billion, compared to $19.2 billion
last year. Excluding currency changes, net revenues were down 2 percent
for the year. Fourth quarter net income increased 53 percent to $522
million and diluted earnings per share increased 51 percent to $1.06.
Fiscal 2010 net income increased 28 percent to $1.9 billion and diluted
earnings per share increased 27 percent to $3.86.
In fiscal 2009, NIKE, Inc. incurred a $145 million after-tax
restructuring charge in the fourth quarter, and third quarter results
included a $241 million, after-tax non-cash charge related to the
impairment of goodwill, intangible and other assets of the Company's
Umbro subsidiary. Excluding these charges, fourth quarter net income and
diluted earnings per share both increased 7 percent. For the full-year,
comparable net income increased 2 percent and diluted earnings per
share increased 1 percent.
"We finished strong with a great quarter and accelerating momentum
across the business," said Mark Parker, President and Chief Executive
Officer of NIKE, Inc. "During tough economic times our goal is to
deliver solid financial performance and create competitive separation in
the marketplace. We did that in 2010."
"Nike is at its best when we focus on our two core values -
innovation and inspiration." Parker continued, "Going forward you can
expect to see more game-changing products, more compelling experiences
wherever consumers touch our brands, and a laser focus on operational
and financial excellence. These are the things that allow us to
accelerate first and faster than everybody else."*
Futures Orders
The Company reported worldwide futures orders for NIKE Brand athletic
footwear and apparel, scheduled for delivery from June through November
2010, totaling $8.8 billion, 7 percent higher than orders reported for
the same period last year. Excluding currency changes, orders would have
increased 10 percent.*
By geography and in total for the NIKE Brand, futures orders were as follows:
| Geography |
Reported Futures Orders |
Excluding Currency Changes |
| North America |
8% |
7% |
| Western Europe |
-2% |
11% |
| Central and Eastern Europe |
-2% |
3% |
| Greater China |
19% |
16% |
| Japan |
-17% |
-16% |
| Emerging Markets |
30% |
30% |
| Total NIKE Brand |
7% |
10% |
Geography Highlights
North America
During the fourth quarter, revenue for North America increased 4
percent to $1.8 billion. Footwear revenue was up 1 percent to $1.2
billion, apparel revenue increased 13 percent to $447 million and
equipment revenue was essentially flat at $90 million. Earnings before
interest and taxes (EBIT) for North America improved 8 percent to $435
million.
North America revenue for the full fiscal year was down 1 percent to
$6.7 billion. Footwear revenue decreased 2 percent to $4.6 billion,
apparel revenue was flat at $1.7 billion and equipment revenue increased
1 percent to $346 million. North America EBIT grew 8 percent to $1.5
billion for the fiscal year.
Western Europe
During the fourth quarter, revenue for Western Europe increased 2
percent to $956 million. Footwear revenue increased 1 percent to $593
million, apparel revenue was up 8 percent to $309 million and equipment
declined 12 percent to $54 million. EBIT for Western Europe decreased 17
percent to $193 million.
For the full fiscal year, revenue for Western Europe was down 6
percent to $3.9 billion. Footwear revenue decreased 3 percent to $2.3
billion, apparel revenue declined 9 percent to $1.3 billion and
equipment revenue dropped 15 percent to $247 million. Compared to last
year, EBIT decreased 9 percent to $856 million.
Central and Eastern Europe
In the fourth quarter, revenue for Central and Eastern Europe was 9
percent better than the same period last year at $332 million. Footwear
increased 9 percent to $199 million, apparel revenue grew 10 percent to
$109 million and equipment improved 2 percent to $25 million. EBIT for
Central and Eastern Europe decreased 9 percent to $84 million.
Revenue for Central and Eastern Europe declined 16 percent for the
fiscal year to $1.1 billion. Footwear revenue decreased 12 percent to
$660 million, apparel revenue dropped 21 percent to $399 million and
equipment revenue declined 20 percent to $91 million. Compared to last
year, EBIT decreased 32 percent to $281 million.
Greater China
Fourth quarter revenue for Greater China grew 12 percent to $464
million. Footwear revenue increased 14 percent to $246 million, apparel
was up 10 percent to $193 million and equipment improved 17 percent to
$25 million. EBIT for Greater China increased 20 percent to $187
million.
For fiscal 2010 Greater China revenue was essentially flat to the
prior year at $1.7 billion. Footwear revenue grew 1 percent to $953
million, apparel revenue declined 2 percent to $684 million and
equipment revenue improved 1 percent to $105 million. Fiscal 2010 EBIT
for Greater China grew 11 percent to $637 million.
Japan
Japan's fourth quarter revenue declined 8 percent to $261 million.
Compared to the prior year, footwear revenue was basically flat at $129
million, apparel revenue was down 13 percent at $105 million and
equipment revenue dropped 17 percent to $27 million. EBIT declined 6
percent in the fourth quarter to $61 million.
Fiscal 2010 revenue for Japan declined 5 percent to $882 million.
Compared to last year, footwear revenue increased 1 percent while
apparel and equipment revenue declined 10 percent and 7 percent
respectively. EBIT for Japan was down 12 percent for the year at $180
million.
Emerging Markets
In the Emerging Markets, revenue was up 47 percent to $556 million
for the fourth quarter. Footwear revenue increased 42 percent to $355
million, apparel revenue rose 70 percent to $162 million and equipment
revenue increased 19 percent to $39 million. EBIT for the Emerging
Markets in the fourth quarter improved 46 percent to $114 million.
Full fiscal year revenue for the Emerging Markets was up 20 percent
to $2.0 billion. Footwear revenue was up 23 percent to $1.4 billion,
apparel revenue increased 22 percent to $532 million and equipment
revenue declined 3 percent to $154 million. EBIT for the Emerging
Markets improved 44 percent to $493 million for the year.
Other Businesses
Revenue in the fourth quarter for Other Businesses, which includes
Cole Haan, Converse Inc., Hurley International LLC, NIKE Golf, and Umbro
Ltd., increased 9 percent to $714 million while EBIT improved 71
percent to $73 million.
For the full fiscal year Other Businesses revenue increased 5 percent
to $2.5 billion. EBIT for the fiscal year was $299 million versus a
loss of $193 million last year. Last year's results included a $401
million pre-tax non-cash impairment charge to reduce the carrying value
of Umbro's goodwill, intangible and other assets. Excluding this charge,
EBIT increased 43 percent compared to the same period last year.
Income Statement Review
For both the fourth quarter and full fiscal year, gross margins
improved. In the fourth quarter of fiscal 2010 gross margins were 47.4
percent compared to 43.4 percent for the same period last year. For the
fiscal year, gross margins were 46.3 percent compared to 44.9 percent
last year. Gross margins for the fourth quarter and fiscal year were
higher than the prior year primarily due to improved in-line product
margins, fewer close-out sales, and growth and improved profitability of
owned retail and Other Businesses.
Fourth quarter selling and administrative expenses grew 25 percent to
$1.7 billion. Selling and administrative expenses for the quarter were
higher than the same period last year mainly due to higher demand
creation spending, which increased 43 percent to $666 million, and
increasing operational overhead spending that rose 16 percent to $1.1
billion reflecting investments in Company owned retail and higher costs
for performance-based compensation. For the full fiscal year, selling
and administrative expenses were up 3 percent to $6.3 billion. Full
fiscal year demand creation spending was relatively flat to the prior
year at $2.4 billion while operational overhead spending increased 5
percent to $4.0 billion mainly due to investments in Company owned
retail and higher costs for performance-based compensation.
The effective tax rate for the fourth quarter was 23.6 percent
compared to 29.8 percent for the same period last year. For the fiscal
year, our effective tax rate was 24.2 percent compared to 24.0 percent
last year. Excluding the tax effect of the charge for the impairment of
Umbro assets, the effective tax rate for fiscal 2009 would have been
26.5 percent.
Balance Sheet Review
At the end of the fiscal year, global inventories stood at $2.0
billion, down 13 percent from May 31, 2009. Cash and short-term
investments at year-end were $5.1 billion, $1.7 billion or 49 percent
higher than last year.
Share Repurchase
During the fourth quarter, the Company repurchased a total of
2,884,008 shares for approximately $216 million under the Company's
four-year, $5 billion program approved in September 2008. For the fiscal
year, the Company repurchased a total of 11.3 million shares for
approximately $754 million.
Repurchases for the fiscal year were made in conjunction with two
approved repurchase programs. In the third quarter of fiscal 2010 the
Company completed its previous four-year, $3 billion share repurchase
program approved by the Board of Directors in June 2006 under which the
Company purchased a total of 53.9 million shares. Having completed the
previous program, the Company began repurchases under the four-year, $5
billion program approved in September 2008. Of the total shares
repurchased during the fiscal year, 6.6 million shares for approximately
$454 million were purchased under this program.
Conference Call
Nike management will host a conference call beginning at
approximately 2:00 p.m. PT on June 23, 2010, to review fourth quarter
and fiscal year results. The conference call will be broadcast live over
the Internet and can be accessed at http://www.nikebiz.com/investors.
For those unable to listen to the live broadcast, an archived version
will be available at the same location through 10:00 p.m. PT, June 30,
2010.
About NIKE, Inc.
NIKE, Inc. based near Beaverton, Oregon, is the world's leading
designer, marketer and distributor of authentic athletic footwear,
apparel, equipment and accessories for a wide variety of sports and
fitness activities. Wholly-owned Nike subsidiaries include Cole Haan,
which designs, markets and distributes luxury shoes, handbags,
accessories and coats; Converse Inc., which designs, markets and
distributes athletic footwear, apparel and accessories; Hurley
International LLC, which designs, markets and distributes action sports
and youth lifestyle footwear, apparel and accessories; and Umbro Ltd., a
leading United Kingdom-based global football (soccer) brand. For more
information, Nike's earnings releases and other financial information
are available on the Internet at http://www.nikebiz.com/investors.
* The marked paragraphs contain forward-looking statements that
involve risks and uncertainties that could cause actual results to
differ materially. These risks and uncertainties are detailed from time
to time in reports filed by NIKE, Inc. with the S.E.C., including Forms
8-K, 10-Q, and 10-K. Some forward-looking statements in this release
concern changes in futures orders that are not necessarily indicative of
changes in total revenues for subsequent periods due to the mix of
futures and "at once" orders, exchange rate fluctuations, order
cancellations and discounts, which may vary significantly from quarter
to quarter, and because a significant portion of the business does not
report futures orders.
(Additional Tables Follow)
|
| NIKE, Inc. |
| CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE PERIOD ENDED MAY 31, 2010 |
| (In millions, except per share data) |
| |
| |
QUARTER ENDED
|
YEAR TO DATE ENDED
|
| INCOME STATEMENT |
5/31/2010 |
5/31/2009 |
% Chg |
5/31/2010 |
5/31/2009 |
% Chg |
| Revenues |
$ 5,076.9 |
$ 4,713.0 |
8% |
$ 19,014.0 |
$ 19,176.1 |
-1% |
| Cost of sales |
2,670.7 |
2,669.2 |
0% |
10,213.6 |
10,571.7 |
-3% |
| Gross margin |
2,406.2 |
2,043.8 |
18% |
8,800.4 |
8,604.4 |
2% |
| |
47.4% |
43.4% |
|
46.3% |
44.9% |
|
| |
|
|
|
|
|
|
| Selling and administrative expense |
1,737.9 |
1,394.3 |
25% |
6,326.4 |
6,149.6 |
3% |
| |
34.2% |
29.6% |
|
33.3% |
32.1% |
|
| |
|
|
|
|
|
|
| Restructuring Charges |
0.0 |
195.0 |
-100% |
0.0 |
195.0 |
-100% |
| Goodwill Impairment |
0.0 |
0.0 |
0% |
0.0 |
199.3 |
-100% |
| Intangible and other asset impairment |
0.0 |
0.0 |
0% |
0.0 |
202.0 |
-100% |
| Other (income), net |
(17.0 ) |
(34.4 ) |
-51% |
(49.2 ) |
(88.5 ) |
-44% |
| Interest expense (income), net |
2.5 |
2.6 |
-4% |
6.3 |
(9.5 ) |
-- |
| |
|
|
|
|
|
|
| Income before income taxes |
682.8 |
486.3 |
40% |
2,516.9 |
1,956.5 |
29% |
| |
|
|
|
|
|
|
| Income taxes |
160.9 |
144.9 |
11% |
610.2 |
469.8 |
30% |
| |
23.6% |
29.8% |
|
24.2% |
24.0% |
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Net income |
$ 521.9 |
$ 341.4 |
53% |
$ 1,906.7 |
$ 1,486.7 |
28% |
| |
|
|
|
|
|
|
| Diluted EPS |
$ 1.06 |
$ 0.70 |
51% |
$ 3.86 |
$ 3.03 |
27% |
| |
|
|
|
|
|
|
| Basic EPS |
$ 1.08 |
$ 0.70 |
54% |
$ 3.93 |
$ 3.07 |
28% |
| |
|
|
|
|
|
|
| Weighted Average Common Shares Outstanding: |
| Diluted |
493.9 |
489.4 |
|
493.9 |
490.7 |
|
| Basic |
484.4 |
484.8 |
|
485.5 |
484.9 |
|
| Dividends declared |
$ 0.27 |
$ 0.25 |
|
$ 1.06 |
$ 0.98 |
|
| |
| NIKE, Inc. |
| |
| BALANCE SHEET |
5/31/2010 |
5/31/2009 |
| |
(In millions) |
| ASSETS |
|
|
| Current assets: |
|
|
| Cash and equivalents |
$3,079.1 |
$2,291.1 |
| Short-term investments |
2,066.8 |
1,164.0 |
| Accounts receivable, net |
2,649.8 |
2,883.9 |
| Inventories |
2,040.8 |
2,357.0 |
| Deferred income taxes |
248.8 |
272.4 |
| Prepaid expenses and other current assets |
873.9 |
765.6 |
| Total current assets |
10,959.2 |
9,734.0 |
| |
|
|
| Property, plant and equipment |
4,389.8 |
4,255.7 |
| Less accumulated depreciation |
2,457.9 |
2,298.0 |
| Property, plant and equipment, net |
1,931.9 |
1,957.7 |
| |
|
|
| Identifiable intangible assets, net |
467.0 |
467.4 |
| Goodwill |
187.6 |
193.5 |
| Deferred income taxes and other assets |
873.6 |
897.0 |
| Total assets |
$14,419.3 |
$13,249.6 |
| |
|
|
| LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
| Current liabilities: |
|
|
| Current portion of long-term debt |
$7.4 |
$32.0 |
| Notes payable |
138.6 |
342.9 |
| Accounts payable |
1,254.5 |
1,031.9 |
| Accrued liabilities |
1,904.4 |
1,783.9 |
| Income taxes payable |
59.3 |
86.3 |
| Total current liabilities |
3,364.2 |
3,277.0 |
| |
|
|
| Long-term debt |
445.8 |
437.2 |
| Deferred income taxes and other liabilities |
855.3 |
842.0 |
| Redeemable preferred stock |
0.3 |
0.3 |
| Shareholders' equity |
9,753.7 |
8,693.1 |
| Total liabilities and shareholders' equity |
$14,419.3 |
$13,249.6 |
| |
| NIKE, Inc. |
| |
QUARTER ENDED |
% Change |
% Change Excluding Currency Changes 2 |
YEAR TO DATE ENDED |
% Change |
% Change Excluding Currency Changes 2 |
| DIVISIONAL REVENUES1 |
5/31/2010 |
5/31/2009 |
5/31/2010 |
5/31/2009 |
| |
(Amounts in millions) |
| North America |
| Footwear |
$ 1,224.2 |
$ 1,209.0 |
1 % |
1 % |
$ 4,610.0 |
$ 4,693.9 |
-2 % |
-2 % |
| Apparel |
446.7 |
397.0 |
13 % |
12 % |
1,740.1 |
1,740.3 |
0 % |
0 % |
| Equipment |
89.5 |
89.8 |
0 % |
-1 % |
345.9 |
344.1 |
1 % |
0 % |
| Total |
1,760.4 |
1,695.8 |
4 % |
3 % |
6,696.0 |
6,778.3 |
-1 % |
-1 % |
| |
|
|
|
|
|
|
|
|
| Western Europe |
| Footwear |
593.1 |
589.9 |
1 % |
-4 % |
2,320.3 |
2,384.7 |
-3 % |
-3 % |
| Apparel |
309.0 |
285.7 |
8 % |
3 % |
1,325.1 |
1,462.7 |
-9 % |
-9 % |
| Equipment |
53.9 |
61.2 |
-12 % |
-16 % |
246.6 |
291.7 |
-15 % |
-15 % |
| Total |
956.0 |
936.8 |
2 % |
-2 % |
3,892.0 |
4,139.1 |
-6 % |
-6 % |
| |
|
|
|
|
|
|
|
|
| Central and Eastern Europe |
| Footwear |
198.8 |
182.3 |
9 % |
-3 % |
660.4 |
752.0 |
-12 % |
-13 % |
| Apparel |
108.5 |
98.2 |
10 % |
-2 % |
398.8 |
507.6 |
-21 % |
-22 % |
| Equipment |
24.6 |
24.1 |
2 % |
-11 % |
90.7 |
113.6 |
-20 % |
-19 % |
| Total |
331.9 |
304.6 |
9 % |
-3 % |
1,149.9 |
1,373.2 |
-16 % |
-17 % |
| |
|
|
|
|
|
|
|
|
| Greater China |
| Footwear |
246.4 |
216.8 |
14 % |
13 % |
953.3 |
939.9 |
1 % |
1 % |
| Apparel |
192.6 |
175.1 |
10 % |
10 % |
684.0 |
699.6 |
-2 % |
-3 % |
| Equipment |
25.4 |
21.8 |
17 % |
16 % |
104.5 |
103.8 |
1 % |
0 % |
| Total |
464.4 |
413.7 |
12 % |
12 % |
1,741.8 |
1,743.3 |
0 % |
0 % |
| |
|
|
|
|
|
|
|
|
| Japan |
| Footwear |
128.9 |
129.5 |
0 % |
-6 % |
433.1 |
430.1 |
1 % |
-7 % |
| Apparel |
105.1 |
120.7 |
-13 % |
-17 % |
356.5 |
396.8 |
-10 % |
-17 % |
| Equipment |
26.6 |
32.0 |
-17 % |
-21 % |
92.4 |
99.0 |
-7 % |
-13 % |
| Total |
260.6 |
282.2 |
-8 % |
-12 % |
882.0 |
925.9 |
-5 % |
-12 % |
| |
|
|
|
|
|
|
|
|
| Emerging Markets |
| Footwear |
354.8 |
249.4 |
42 % |
24 % |
1,356.0 |
1,106.1 |
23 % |
21 % |
| Apparel |
162.3 |
95.6 |
70 % |
44 % |
532.1 |
437.7 |
22 % |
19 % |
| Equipment |
38.9 |
32.6 |
19 % |
5 % |
153.5 |
158.2 |
-3 % |
-4 % |
| Total |
556.0 |
377.6 |
47 % |
28 % |
2,041.6 |
1,702.0 |
20 % |
18 % |
| |
|
|
|
|
|
|
|
|
| Global Brand Divisions3 |
27.8 |
44.5 |
-38 % |
-40 % |
105.3 |
95.3 |
10 % |
12 % |
| |
|
|
|
|
|
|
|
|
| Total NIKE Brand |
4,357.1 |
4,055.2 |
7 % |
3 % |
16,508.6 |
16,757.1 |
-1 % |
-2 % |
| |
|
|
|
|
|
|
|
|
| Other Businesses4 |
714.0 |
657.8 |
9 % |
6 % |
2,529.5 |
2,419.0 |
5 % |
4 % |
| Corporate5 |
5.8 |
- |
- |
- |
(24.1 ) |
- |
- |
- |
| |
|
|
|
|
|
|
|
|
| Total NIKE, Inc. Revenues |
$ 5,076.9 |
$ 4,713.0 |
8 % |
4 % |
$ 19,014.0 |
$ 19,176.1 |
-1 % |
-2 % |
| |
|
|
|
|
|
|
|
|
| Total NIKE Brand |
|
|
|
|
|
|
|
|
| Footwear |
$ 2,746.2 |
$ 2,576.9 |
7 % |
2 % |
$ 10,333.1 |
$ 10,306.7 |
0 % |
-1 % |
| Apparel |
1,324.2 |
1,172.3 |
13 % |
8 % |
5,036.6 |
5,244.7 |
-4 % |
-5 % |
| Equipment |
258.9 |
261.5 |
-1 % |
-6 % |
1,033.6 |
1,110.4 |
-7 % |
-7 % |
| Global Brand Divisions4 |
27.8 |
44.5 |
-38 % |
-40 % |
105.3 |
95.3 |
10 % |
12 % |
| |
|
1 Certain prior year amounts
have been reclassified to conform to fiscal year 2010 presentation.
These changes had no impact on previously reported results of operations
or shareholders' equity. |
|
|
2 Fiscal 2010 results have
been restated using fiscal 2009 exchange rates for the comparative
period to enhance the visibility of the underlying business trends
excluding the impact of foreign currency exchange rate fluctuations. |
|
| 3
Global Brand Divisions primarily represent NIKE Brand licensing
businesses that are not part of a geographic operating segment. |
| |
|
4 Other businesses represent activities of Cole Haan, Converse, Hurley, NIKE Golf and Umbro. |
|
| 5
Corporate primarily consists of results from our centrally managed
foreign currency hedging program and foreign currency gains and losses
resulting from the difference between actual foreign currency rates and
standard rates assigned to our geographic operating segments. In fiscal
2010, foreign currency gains and losses generated by all our geographic
operating segments are included in Corporate, with the exception of
those generated by Other Businesses which are reported within their
respective operating results. |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| NIKE, Inc. |
| |
QUARTER ENDED
|
YEAR TO DATE ENDED
|
| EARNINGS BEFORE INTEREST AND TAXES1,2 |
5/31/2010 |
5/31/2009 |
% Chg |
5/31/2010 |
5/31/2009 |
% Chg |
|
(In millions) |
| |
|
|
|
|
|
|
| North America |
$ 434.6 |
$ 401.9 |
8 % |
$ 1,538.1 |
$ 1,429.3 |
8 % |
| Western Europe |
192.6 |
232.8 |
-17 % |
855.7 |
939.1 |
-9 % |
| Central and Eastern Europe |
84.3 |
93.0 |
-9 % |
281.2 |
415.1 |
-32 % |
| Greater China |
187.0 |
155.6 |
20 % |
637.1 |
575.2 |
11 % |
| Japan |
60.8 |
65.0 |
-6 % |
180.3 |
205.4 |
-12 % |
| Emerging Markets |
113.6 |
77.8 |
46 % |
492.6 |
342.6 |
44 % |
| Global Brand Divisions3 |
(277.6 ) |
(211.3 ) |
-31 % |
(866.8 ) |
(811.5 ) |
-7 % |
| |
|
|
|
|
|
|
| Total NIKE Brand |
795.3 |
814.8 |
-2 % |
3,118.2 |
3,095.2 |
1 % |
| |
|
|
|
|
|
|
| Other Businesses4 |
72.5 |
42.4 |
71 % |
299.4 |
(192.6 ) |
- |
| Corporate5 |
(182.5 ) |
(368.3 ) |
50 % |
(894.4 ) |
(955.6 ) |
6 % |
| |
|
|
|
|
|
|
| Total earnings before interest and taxes1,2 |
$ 685.3 |
$ 488.9 |
40 % |
$ 2,523.2 |
$ 1,947.0 |
30 % |
| |
|
|
|
|
|
|
| 1
The Company evaluates performance of individual operating segments
based on earnings before interest and taxes (also commonly referred to
as "EBIT"), which represents net income before interest expense
(income), net, and income taxes. |
| |
|
|
|
|
|
|
|
|
|
|
|
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| 2
Certain prior year amounts have been reclassified to conform to fiscal
year 2010 presentation. These changes had no impact on previously
reported results of operations or shareholders' equity. |
| |
|
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|
|
|
|
|
|
|
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|
|
|
3 Global Brand Divisions
primarily represent NIKE Brand licensing businesses that are not part of
a geographic operating segment and selling and administrative expenses
that are centrally managed for the NIKE Brand. |
|
4 Other businesses represent activities of Cole Haan, Converse, Hurley, NIKE Golf and Umbro.
|
|
| 5
Corporate expense consists of unallocated general and administrative
expenses, which includes expenses associated with centrally managed
departments, depreciation and amortization related to the Company's
corporate headquarters, unallocated insurance and benefit programs,
foreign currency gains and losses, including hedge gains and losses,
corporate eliminations and other items. |
| |
| NIKE, Inc. |
| NET INCOME AND DILUTED EPS RECONCILIATION |
QUARTER ENDED |
YEAR TO DATE ENDED |
| EXCLUDING NON COMPARABLE ITEMS1 |
5/31/2010 |
5/31/2009 |
% Chg |
5/31/2010 |
5/31/2009 |
% Chg |
| |
(In millions, except per share data) |
| |
|
|
|
|
|
|
| Net income, as reported |
$ 521.9 |
$ 341.4 |
53% |
$ 1,906.7 |
$ 1,486.7 |
28% |
| Add: |
|
|
|
|
|
|
| Restructuring charges, net of tax2 |
- |
144.5 |
|
- |
144.5 |
|
| Umbro impairment of goodwill, intangible and other assets, net of tax3 |
- |
- |
|
- |
240.7 |
|
| |
|
|
|
|
|
|
| Net income, excluding non comparable items |
$ 521.9 |
$ 485.9 |
7% |
$ 1,906.7 |
$ 1,871.9 |
2% |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Diluted EPS, as reported |
$ 1.06 |
$ 0.70 |
51% |
$ 3.86 |
$ 3.03 |
27% |
| Add: |
|
|
|
|
|
|
| Restructuring charges, net of tax2 |
- |
0.29 |
|
- |
0.29 |
|
| Umbro impairment of goodwill, intangible and other assets, net of tax3 |
- |
- |
|
- |
0.49 |
|
| |
|
|
|
|
|
|
| Diluted EPS, excluding non comparable items |
$ 1.06 |
$ 0.99 |
7% |
$ 3.86 |
$ 3.81 |
1% |
| |
|
|
|
|
|
|
| Diluted weighted average common shares outstanding |
493.9 |
489.4 |
|
493.9 |
490.7 |
|
| |
|
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|
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| 1
This schedule is intended to satisfy the quantitative reconciliation
for non-GAAP financial measures in accordance with Regulation G of the
Securities and Exchange Commission. In addition, this schedule is
provided to enhance the visibility of the underlying business trends
excluding non comparable items for the three and twelve-month periods
ended May 31, 2009. |
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2 During the third quarter
of fiscal 2009, the Company announced a plan to restructure the
organization. As part of this plan, the Company streamlined its
management structure and eliminated redundancies to enhance consumer
focus, drive innovation more quickly to market, and establish a more
scalable cost structure. As a result of these actions, the Company
recorded $195 million of restructuring charges during the fourth quarter
of fiscal 2009. |
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3 During the third quarter
of fiscal 2009, the Company recorded a one-time non-cash impairment
charge to reduce the carrying value of Umbro's goodwill,
indefinite-lived trademark and other assets. The tax benefit related to
this impairment charge reduced the Company's effective tax rate by 250
basis points for the twelve-month period ended May 31, 2009. |
SOURCE: NIKE, Inc.
NIKE, Inc.
Investor Contact:
Kelley Hall, 503-532-3793
or
Media Contact:
Kellie Leonard, 503-671-6171