-
Revenues up 6 percent to $8.2 billion; 8 percent growth on a currency
neutral basis*
-
Diluted earnings per share up 11 percent to $0.50 compared to prior
year
-
Inventories up 9 percent as of November 30, 2016
BEAVERTON, Ore.--(BUSINESS WIRE)--
NIKE, Inc. (NYSE:NKE) today reported financial results for its fiscal
2017 second quarter ended November 30, 2016. Global consumer demand
drove revenue growth across the NIKE Brand portfolio. Diluted earnings
per share were up 11 percent and grew faster than revenue, primarily due
to selling and administrative expense leverage and a lower average share
count.
“NIKE’s ability to attack the opportunities that consistently drive
growth over the near and long term is what sets us apart,” said Mark
Parker, Chairman, President and CEO, NIKE, Inc. “With industry-defining
innovation platforms, highly anticipated signature basketball styles and
more personalized retail experiences on the horizon, we are
well-positioned to carry our momentum into the back half of the fiscal
year and beyond.”**
Second Quarter Income Statement Review
-
Revenues for NIKE, Inc. increased 6 percent to
$8.2 billion, up 8 percent on a currency neutral basis.
-
Revenues for the NIKE Brand were $7.7 billion, up 8 percent on a
constant currency basis, driven by double-digit currency neutral
growth in Western Europe, Greater China and the Emerging Markets
as well as the Sportswear and Running categories.
-
Revenues for Converse were $416 million, up 5 percent on a
currency neutral basis, driven by strong growth in North America.
-
Gross margin contracted 140 basis points to 44.2
percent, as higher average selling prices were more than offset by
higher product costs, unfavorable changes in foreign exchange rates
and the impact of higher off-price sales.
-
Selling and administrative expense declined 2 percent to
$2.5 billion. Demand creation expense was $762 million, relatively
unchanged from the prior year. Operating overhead expense decreased 3
percent to $1.7 billion, as continued investments in
Direct-to-Consumer (DTC) were offset by productivity gains compared to
the prior year.
-
Other income, net was $18 million comprised primarily of
non-operating items, and to a lesser extent, net foreign exchange
gains. For the quarter, the Company estimates the year-over-year
change in foreign currency related gains and losses included in other
income, net, combined with the impact of changes in currency exchange
rates on the translation of foreign currency-denominated profits,
decreased pretax income by approximately $29 million.
-
The effective tax rate was 24.4 percent, compared to
19.1 percent for the same period last year, primarily due to an
increased mix of U.S. earnings, which are generally subject to a
higher tax rate.
-
Net income increased 7 percent to $842 million, while diluted
earnings per share increased 11 percent to $0.50, reflecting
revenue growth, selling and administrative expense leverage and a
three percent decline in the weighted average diluted common shares
outstanding, partially offset by lower gross margin.
November 30, 2016 Balance Sheet Review
-
Inventories for NIKE, Inc. were $5.0 billion, up 9
percent from November 30, 2015, due to a one percent increase in NIKE
Brand wholesale unit inventories and increases in average product
costs per unit primarily due to product mix, as well as higher
inventories associated with growth in DTC.
-
Cash and short-term investments were $5.9 billion, $173
million lower than November 30, 2015 as growth in net income and
proceeds from the issuance of debt in the second quarter of fiscal
2017 were more than offset by share repurchases, higher dividends,
investments in infrastructure and a reduction in collateral received
from counterparties to foreign currency hedging instruments.
Share Repurchases
During the second quarter, NIKE, Inc. repurchased a total of 17.0
million shares for approximately $900 million as part of the four-year,
$12 billion program approved by the Board of Directors in November 2015.
As of November 30, 2016, a total of 56.0 million shares had been
repurchased under this program for approximately $3.1 billion.
Futures Orders
Worldwide futures orders for the NIKE Brand will be referenced on our
earnings conference calls as deemed appropriate. NIKE Brand and
geography Futures Orders growth versus the prior year will be posted on
the NIKE, Inc. Investor Relations website at http://investors.nike.com
following the call.
Conference Call
NIKE, Inc. management will host a conference call beginning at
approximately 2:00 p.m. PT on December 20, 2016, to review fiscal second
quarter results. The conference call will be broadcast live over the
Internet and can be accessed at http://investors.NIKE.com.
For those unable to listen to the live broadcast, an archived version
will be available at the same location through 9:00 p.m. PT, December
27, 2016.
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, Inc. subsidiary brands include
Converse, which designs, markets and distributes athletic lifestyle
footwear, apparel and accessories; and Hurley, which designs, markets
and distributes surf and youth lifestyle footwear, apparel and
accessories. For more information, NIKE, Inc.’s earnings releases and
other financial information are available on the Internet at http://investors.NIKE.com
and individuals can follow @NIKE.
* See additional information in the accompanying Divisional
Revenues table regarding this non-GAAP financial measure.
** 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 with the Securities and Exchange
Commission (SEC), including Forms 8-K, 10-Q, and 10-K.
NIKE, Inc.
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
|
|
%
|
|
SIX MONTHS ENDED
|
|
%
|
(Dollars in millions, except per share data)
|
|
|
11/30/2016
|
|
|
|
11/30/2015
|
|
|
Change
|
|
|
11/30/2016
|
|
|
|
11/30/2015
|
|
|
Change
|
Revenues
|
|
$
|
8,180
|
|
|
$
|
7,686
|
|
|
6
|
%
|
|
$
|
17,241
|
|
|
$
|
16,100
|
|
|
7
|
%
|
Cost of sales
|
|
|
4,564
|
|
|
|
4,185
|
|
|
9
|
%
|
|
|
9,502
|
|
|
|
8,604
|
|
|
10
|
%
|
Gross profit
|
|
|
3,616
|
|
|
|
3,501
|
|
|
3
|
%
|
|
|
7,739
|
|
|
|
7,496
|
|
|
3
|
%
|
Gross margin
|
|
|
44.2
|
%
|
|
|
45.6
|
%
|
|
|
|
|
44.9
|
%
|
|
|
46.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand creation expense
|
|
|
762
|
|
|
|
769
|
|
|
-1
|
%
|
|
|
1,803
|
|
|
|
1,601
|
|
|
13
|
%
|
Operating overhead expense
|
|
|
1,743
|
|
|
|
1,791
|
|
|
-3
|
%
|
|
|
3,599
|
|
|
|
3,536
|
|
|
2
|
%
|
Total selling and administrative expense
|
|
|
2,505
|
|
|
|
2,560
|
|
|
-2
|
%
|
|
|
5,402
|
|
|
|
5,137
|
|
|
5
|
%
|
% of revenue
|
|
|
30.6
|
%
|
|
|
33.3
|
%
|
|
|
|
|
31.3
|
%
|
|
|
31.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense (income), net
|
|
|
15
|
|
|
|
5
|
|
|
—
|
|
|
|
22
|
|
|
|
9
|
|
|
—
|
|
Other (income) expense, net
|
|
|
(18
|
)
|
|
|
(34
|
)
|
|
—
|
|
|
|
(80
|
)
|
|
|
(65
|
)
|
|
—
|
|
Income before income taxes
|
|
|
1,114
|
|
|
|
970
|
|
|
15
|
%
|
|
|
2,395
|
|
|
|
2,415
|
|
|
-1
|
%
|
Income tax expense
|
|
|
272
|
|
|
|
185
|
|
|
47
|
%
|
|
|
304
|
|
|
|
451
|
|
|
-33
|
%
|
Effective tax rate
|
|
|
24.4
|
%
|
|
|
19.1
|
%
|
|
|
|
|
12.7
|
%
|
|
|
18.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
842
|
|
|
$
|
785
|
|
|
7
|
%
|
|
$
|
2,091
|
|
|
$
|
1,964
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.51
|
|
|
$
|
0.46
|
|
|
11
|
%
|
|
$
|
1.26
|
|
|
$
|
1.15
|
|
|
10
|
%
|
Diluted
|
|
$
|
0.50
|
|
|
$
|
0.45
|
|
|
11
|
%
|
|
$
|
1.23
|
|
|
$
|
1.12
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
1,659.1
|
|
|
|
1,706.5
|
|
|
|
|
|
1,665.6
|
|
|
|
1,707.8
|
|
|
|
Diluted
|
|
|
1,693.2
|
|
|
|
1,751.4
|
|
|
|
|
|
1,701.3
|
|
|
|
1,753.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common share
|
|
$
|
0.18
|
|
|
$
|
0.16
|
|
|
|
|
$
|
0.34
|
|
|
$
|
0.30
|
|
|
|
|
NIKE, Inc.
|
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
November 30,
|
|
November 30,
|
|
|
(Dollars in millions)
|
|
2016
|
|
2015
|
|
% Change
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and equivalents
|
|
$
|
4,339
|
|
$
|
3,851
|
|
13
|
%
|
Short-term investments
|
|
|
1,604
|
|
|
2,265
|
|
-29
|
%
|
Accounts receivable, net
|
|
|
3,478
|
|
|
3,437
|
|
1
|
%
|
Inventories
|
|
|
5,033
|
|
|
4,600
|
|
9
|
%
|
Prepaid expenses and other current assets
|
|
|
1,557
|
|
|
2,197
|
|
-29
|
%
|
Total current assets
|
|
|
16,011
|
|
|
16,350
|
|
-2
|
%
|
Property, plant and equipment, net
|
|
|
3,566
|
|
|
3,235
|
|
10
|
%
|
Identifiable intangible assets, net
|
|
|
283
|
|
|
281
|
|
1
|
%
|
Goodwill
|
|
|
139
|
|
|
131
|
|
6
|
%
|
Deferred income taxes and other assets1
|
|
|
2,653
|
|
|
2,567
|
|
3
|
%
|
TOTAL ASSETS
|
|
$
|
22,652
|
|
$
|
22,564
|
|
0
|
%
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
$
|
44
|
|
$
|
5
|
|
780
|
%
|
Notes payable
|
|
|
20
|
|
|
99
|
|
-80
|
%
|
Accounts payable
|
|
|
2,033
|
|
|
1,915
|
|
6
|
%
|
Accrued liabilities1
|
|
|
3,076
|
|
|
3,449
|
|
-11
|
%
|
Income taxes payable
|
|
|
52
|
|
|
41
|
|
27
|
%
|
Total current liabilities
|
|
|
5,225
|
|
|
5,509
|
|
-5
|
%
|
Long-term debt
|
|
|
3,473
|
|
|
2,050
|
|
69
|
%
|
Deferred income taxes and other liabilities1
|
|
|
1,631
|
|
|
1,600
|
|
2
|
%
|
Redeemable preferred stock
|
|
|
—
|
|
|
—
|
|
—
|
|
Shareholders' equity
|
|
|
12,323
|
|
|
13,405
|
|
-8
|
%
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
$
|
22,652
|
|
$
|
22,564
|
|
0
|
%
|
1 During the fourth quarter of fiscal 2016, NIKE, Inc.
adopted Accounting Standards Update No. 2015-17, which requires all
deferred tax assets and deferred tax liabilities to be classified as
non-current. All periods presented have been updated to reflect
these changes.
|
|
NIKE, Inc.
|
DIVISIONAL REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
Excluding
|
|
|
|
|
|
|
|
Excluding
|
|
|
THREE MONTHS ENDED
|
|
%
|
|
Currency
|
|
SIX MONTHS ENDED
|
|
%
|
|
Currency
|
(Dollars in millions)
|
|
|
11/30/2016
|
|
|
11/30/2015
|
|
|
Change
|
|
Changes1
|
|
|
11/30/2016
|
|
|
11/30/2015
|
|
|
Change
|
|
Changes1
|
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
$
|
2,219
|
|
$
|
2,162
|
|
|
3
|
%
|
|
3
|
%
|
|
$
|
4,737
|
|
$
|
4,528
|
|
|
5
|
%
|
|
5
|
%
|
Apparel
|
|
|
1,273
|
|
|
1,221
|
|
|
4
|
%
|
|
4
|
%
|
|
|
2,590
|
|
|
2,468
|
|
|
5
|
%
|
|
5
|
%
|
Equipment
|
|
|
158
|
|
|
164
|
|
|
-4
|
%
|
|
-3
|
%
|
|
|
354
|
|
|
350
|
|
|
1
|
%
|
|
1
|
%
|
Total
|
|
|
3,650
|
|
|
3,547
|
|
|
3
|
%
|
|
3
|
%
|
|
|
7,681
|
|
|
7,346
|
|
|
5
|
%
|
|
5
|
%
|
Western Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
865
|
|
|
845
|
|
|
2
|
%
|
|
8
|
%
|
|
|
2,012
|
|
|
1,973
|
|
|
2
|
%
|
|
5
|
%
|
Apparel
|
|
|
454
|
|
|
391
|
|
|
16
|
%
|
|
23
|
%
|
|
|
985
|
|
|
825
|
|
|
19
|
%
|
|
25
|
%
|
Equipment
|
|
|
66
|
|
|
63
|
|
|
5
|
%
|
|
12
|
%
|
|
|
151
|
|
|
142
|
|
|
6
|
%
|
|
11
|
%
|
Total
|
|
|
1,385
|
|
|
1,299
|
|
|
7
|
%
|
|
12
|
%
|
|
|
3,148
|
|
|
2,940
|
|
|
7
|
%
|
|
11
|
%
|
Central & Eastern Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
192
|
|
|
183
|
|
|
5
|
%
|
|
6
|
%
|
|
|
462
|
|
|
421
|
|
|
10
|
%
|
|
13
|
%
|
Apparel
|
|
|
120
|
|
|
126
|
|
|
-5
|
%
|
|
-4
|
%
|
|
|
258
|
|
|
259
|
|
|
0
|
%
|
|
4
|
%
|
Equipment
|
|
|
16
|
|
|
17
|
|
|
-6
|
%
|
|
-6
|
%
|
|
|
48
|
|
|
47
|
|
|
2
|
%
|
|
6
|
%
|
Total
|
|
|
328
|
|
|
326
|
|
|
1
|
%
|
|
1
|
%
|
|
|
768
|
|
|
727
|
|
|
6
|
%
|
|
10
|
%
|
Greater China
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
669
|
|
|
600
|
|
|
12
|
%
|
|
16
|
%
|
|
|
1,379
|
|
|
1,199
|
|
|
15
|
%
|
|
21
|
%
|
Apparel
|
|
|
355
|
|
|
306
|
|
|
16
|
%
|
|
21
|
%
|
|
|
624
|
|
|
552
|
|
|
13
|
%
|
|
18
|
%
|
Equipment
|
|
|
31
|
|
|
32
|
|
|
-3
|
%
|
|
3
|
%
|
|
|
72
|
|
|
73
|
|
|
-1
|
%
|
|
3
|
%
|
Total
|
|
|
1,055
|
|
|
938
|
|
|
12
|
%
|
|
17
|
%
|
|
|
2,075
|
|
|
1,824
|
|
|
14
|
%
|
|
19
|
%
|
Japan
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
151
|
|
|
128
|
|
|
18
|
%
|
|
0
|
%
|
|
|
317
|
|
|
250
|
|
|
27
|
%
|
|
8
|
%
|
Apparel
|
|
|
70
|
|
|
63
|
|
|
11
|
%
|
|
-6
|
%
|
|
|
130
|
|
|
106
|
|
|
23
|
%
|
|
5
|
%
|
Equipment
|
|
|
17
|
|
|
14
|
|
|
21
|
%
|
|
9
|
%
|
|
|
36
|
|
|
28
|
|
|
29
|
%
|
|
11
|
%
|
Total
|
|
|
238
|
|
|
205
|
|
|
16
|
%
|
|
-2
|
%
|
|
|
483
|
|
|
384
|
|
|
26
|
%
|
|
7
|
%
|
Emerging Markets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
726
|
|
|
674
|
|
|
8
|
%
|
|
15
|
%
|
|
|
1,387
|
|
|
1,344
|
|
|
3
|
%
|
|
14
|
%
|
Apparel
|
|
|
263
|
|
|
255
|
|
|
3
|
%
|
|
9
|
%
|
|
|
497
|
|
|
493
|
|
|
1
|
%
|
|
11
|
%
|
Equipment
|
|
|
58
|
|
|
55
|
|
|
5
|
%
|
|
10
|
%
|
|
|
108
|
|
|
113
|
|
|
-4
|
%
|
|
4
|
%
|
Total
|
|
|
1,047
|
|
|
984
|
|
|
6
|
%
|
|
13
|
%
|
|
|
1,992
|
|
|
1,950
|
|
|
2
|
%
|
|
12
|
%
|
Global Brand Divisions2
|
|
|
21
|
|
|
18
|
|
|
17
|
%
|
|
17
|
%
|
|
|
36
|
|
|
44
|
|
|
-18
|
%
|
|
-21
|
%
|
Total NIKE Brand
|
|
|
7,724
|
|
|
7,317
|
|
|
6
|
%
|
|
8
|
%
|
|
|
16,183
|
|
|
15,215
|
|
|
6
|
%
|
|
9
|
%
|
Converse
|
|
|
416
|
|
|
398
|
|
|
5
|
%
|
|
5
|
%
|
|
|
990
|
|
|
953
|
|
|
4
|
%
|
|
5
|
%
|
Corporate3
|
|
|
40
|
|
|
(29
|
)
|
|
—
|
|
|
—
|
|
|
|
68
|
|
|
(68
|
)
|
|
—
|
|
|
—
|
|
Total NIKE, Inc. Revenues
|
|
$
|
8,180
|
|
$
|
7,686
|
|
|
6
|
%
|
|
8
|
%
|
|
$
|
17,241
|
|
$
|
16,100
|
|
|
7
|
%
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total NIKE Brand
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
$
|
4,822
|
|
$
|
4,592
|
|
|
5
|
%
|
|
7
|
%
|
|
$
|
10,294
|
|
$
|
9,715
|
|
|
6
|
%
|
|
8
|
%
|
Apparel
|
|
|
2,535
|
|
|
2,362
|
|
|
7
|
%
|
|
9
|
%
|
|
|
5,084
|
|
|
4,703
|
|
|
8
|
%
|
|
11
|
%
|
Equipment
|
|
|
346
|
|
|
345
|
|
|
0
|
%
|
|
2
|
%
|
|
|
769
|
|
|
753
|
|
|
2
|
%
|
|
4
|
%
|
Global Brand Divisions2
|
|
|
21
|
|
|
18
|
|
|
17
|
%
|
|
17
|
%
|
|
|
36
|
|
|
44
|
|
|
-18
|
%
|
|
-21
|
%
|
1 Fiscal 2017 results have been restated using fiscal
2016 exchange rates for the comparative period to enhance the
visibility of the underlying business trends excluding the impact
of translation arising from foreign currency exchange rate
fluctuations, which is considered a non-GAAP financial measure.
|
2 Global Brand Divisions revenues are primarily
attributable to NIKE Brand licensing businesses that are not part
of a geographic operating segment.
|
3 Corporate revenues primarily consist of foreign
currency hedge gains and losses related to revenues generated by
entities within the NIKE Brand geographic operating segments and
Converse but managed through our central foreign exchange risk
management program.
|
|
NIKE, Inc.
|
EARNINGS BEFORE INTEREST AND TAXES1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
|
|
%
|
|
SIX MONTHS ENDED
|
|
%
|
(Dollars in millions)
|
|
|
11/30/2016
|
|
|
|
11/30/2015
|
|
|
Change
|
|
|
11/30/2016
|
|
|
|
11/30/2015
|
|
|
Change
|
North America
|
|
$
|
912
|
|
|
$
|
882
|
|
|
3
|
%
|
|
$
|
1,916
|
|
|
$
|
1,924
|
|
|
0
|
%
|
Western Europe
|
|
|
236
|
|
|
|
307
|
|
|
-23
|
%
|
|
|
628
|
|
|
|
792
|
|
|
-21
|
%
|
Central & Eastern Europe
|
|
|
58
|
|
|
|
76
|
|
|
-24
|
%
|
|
|
139
|
|
|
|
174
|
|
|
-20
|
%
|
Greater China
|
|
|
375
|
|
|
|
327
|
|
|
15
|
%
|
|
|
746
|
|
|
|
657
|
|
|
14
|
%
|
Japan
|
|
|
48
|
|
|
|
47
|
|
|
2
|
%
|
|
|
98
|
|
|
|
83
|
|
|
18
|
%
|
Emerging Markets
|
|
|
237
|
|
|
|
241
|
|
|
-2
|
%
|
|
|
408
|
|
|
|
499
|
|
|
-18
|
%
|
Global Brand Divisions2
|
|
|
(619
|
)
|
|
|
(625
|
)
|
|
1
|
%
|
|
|
(1,390
|
)
|
|
|
(1,249
|
)
|
|
-11
|
%
|
TOTAL NIKE BRAND
|
|
|
1,247
|
|
|
|
1,255
|
|
|
-1
|
%
|
|
|
2,545
|
|
|
|
2,880
|
|
|
-12
|
%
|
Converse
|
|
|
78
|
|
|
|
85
|
|
|
-8
|
%
|
|
|
231
|
|
|
|
232
|
|
|
0
|
%
|
Corporate3
|
|
|
(196
|
)
|
|
|
(365
|
)
|
|
46
|
%
|
|
|
(359
|
)
|
|
|
(688
|
)
|
|
48
|
%
|
TOTAL EARNINGS BEFORE INTEREST AND TAXES
|
|
|
1,129
|
|
|
|
975
|
|
|
16
|
%
|
|
|
2,417
|
|
|
|
2,424
|
|
|
0
|
%
|
Interest expense (income), net
|
|
|
15
|
|
|
|
5
|
|
|
—
|
|
|
|
22
|
|
|
|
9
|
|
|
—
|
|
TOTAL INCOME BEFORE INCOME TAXES
|
|
$
|
1,114
|
|
|
$
|
970
|
|
|
15
|
%
|
|
$
|
2,395
|
|
|
$
|
2,415
|
|
|
-1
|
%
|
1 The Company evaluates performance of individual
operating segments based on earnings before interest and taxes
(commonly referred to as “EBIT”), which represents net income
before interest expense (income), net and income tax expense and
is considered a non-GAAP financial measure.
|
2 Global Brand Divisions primarily represent demand
creation, operating overhead and product creation and design
expenses that are centrally managed for the NIKE Brand. Revenues
for Global Brand Divisions are primarily attributable to NIKE
Brand licensing businesses that are not part of a geographic
operating segment.
|
3 Corporate consists largely of unallocated general and
administrative expenses, including expenses associated with
centrally managed departments; depreciation and amortization
related to the Company’s corporate headquarters; unallocated
insurance, benefit and compensation programs, including
stock-based compensation; and certain foreign currency gains and
losses, including certain hedge gains and losses.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20161220005994/en/
Source: NIKE, Inc.