-
Revenues up 5 percent to $8.4 billion; 7 percent growth on a
currency-neutral basis*
-
Diluted earnings per share up 24 percent to $0.68
-
Inventories up 7 percent as of February 28, 2017
BEAVERTON, Ore.--(BUSINESS WIRE)--
NIKE, Inc. (NYSE:NKE) today reported financial results for its fiscal
2017 third quarter ended February 28, 2017. Consumer demand in all
geographies drove revenue growth across the NIKE Brand portfolio.
Diluted earnings per share were up 24 percent and grew faster than
revenue, primarily due to selling and administrative expense leverage,
higher other income (net), a lower effective tax rate and a lower
average share count.
“The power of NIKE’s diverse, global portfolio delivered another solid
quarter of growth and profitability,” said Mark Parker, Chairman,
President and CEO, NIKE, Inc. “To expand our leadership and ignite
NIKE’s next phase of growth, we’re delivering a relentless flow of
innovation through performance and style, increasing speed throughout
the business and creating more direct connections with consumers
leveraging digital and membership.”**
Third Quarter Income Statement Review
-
Revenues for NIKE, Inc. increased 5 percent to
$8.4 billion, up 7 percent on a currency-neutral basis.
-
Revenues for the NIKE Brand were $7.9 billion, up 7 percent on a
currency-neutral basis, driven by double-digit growth in Western
Europe, Greater China and the Emerging Markets as well as the
Sportswear and Jordan Brand categories.
-
Revenues for Converse were $498 million, up 3 percent on a
currency-neutral basis, driven by growth in North America.
-
Gross margin contracted 140 basis points to 44.5
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 decreased 3 percent
to $2.5 billion. Demand creation expense was $749 million, down 7
percent as fiscal 2017 spend was weighted towards the first six months
due to significant investments around the Olympics and the European
Championships. Operating overhead expense decreased 1 percent to $1.7
billion, as continued investments in Direct-to-Consumer (DTC) were
offset by lower bad debt expense compared to the prior year and lower
administrative costs as Edit-to-Amplify initiatives are driving
productivity in core operational spending.
-
Other income, net was $88 million comprised primarily of
net foreign currency exchange gains, and to a lesser extent,
non-operating items.
-
The effective tax rate was 13.8 percent, compared to
16.3 percent for the same period last year, primarily due to a
reduction in tax reserves and an increase in the mix of earnings from
operations outside of the U.S., which are generally subject to a lower
tax rate.
-
Net income increased 20 percent to $1.1 billion and diluted
earnings per share increased 24 percent to $0.68 as revenue
growth, selling and administrative expense leverage, higher other
income (net), a lower tax rate and a three percent decline in the
weighted average diluted common shares outstanding more than offset
lower gross margin.
February 28, 2017 Balance Sheet Review
-
Inventories for NIKE, Inc. were $4.9 billion, up 7
percent compared to the prior year as a 3 percent decrease in NIKE
Brand wholesale unit inventories was offset by increases in average
product costs per unit and higher inventories associated with growth
in DTC.
-
Cash and short-term investments were $6.2 billion, $1.1
billion higher than the prior year as growth in net income and
proceeds from the issuance of debt in the second quarter of fiscal
2017 as well as proceeds from employee exercises of stock options more
than offset share repurchases, higher dividends and investments in
infrastructure.
Share Repurchases
During the third quarter, NIKE, Inc. repurchased a total of 8.9 million
shares for approximately $475 million as part of the four-year, $12
billion program approved by the Board of Directors in November 2015. As
of February 28, 2017, a total of 64.9 million shares had been
repurchased under this program for approximately $3.6 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 March 21, 2017, to review fiscal third
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, March 28,
2017.
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
|
|
%
|
|
|
NINE MONTHS ENDED
|
|
%
|
(Dollars in millions, except per share data)
|
|
|
2/28/2017
|
|
|
|
2/29/2016
|
|
|
Change
|
|
|
|
2/28/2017
|
|
|
|
2/29/2016
|
|
|
Change
|
Revenues
|
|
$
|
8,432
|
|
|
$
|
8,032
|
|
|
5
|
%
|
|
|
$
|
25,673
|
|
|
$
|
24,132
|
|
|
6
|
%
|
Cost of sales
|
|
|
4,682
|
|
|
|
4,343
|
|
|
8
|
%
|
|
|
|
14,184
|
|
|
|
12,947
|
|
|
10
|
%
|
Gross profit
|
|
|
3,750
|
|
|
|
3,689
|
|
|
2
|
%
|
|
|
|
11,489
|
|
|
|
11,185
|
|
|
3
|
%
|
Gross margin
|
|
|
44.5
|
%
|
|
|
45.9
|
%
|
|
|
|
|
|
44.8
|
%
|
|
|
46.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand creation expense
|
|
|
749
|
|
|
|
804
|
|
|
-7
|
%
|
|
|
|
2,552
|
|
|
|
2,405
|
|
|
6
|
%
|
Operating overhead expense
|
|
|
1,747
|
|
|
|
1,762
|
|
|
-1
|
%
|
|
|
|
5,346
|
|
|
|
5,298
|
|
|
1
|
%
|
Total selling and administrative expense
|
|
|
2,496
|
|
|
|
2,566
|
|
|
-3
|
%
|
|
|
|
7,898
|
|
|
|
7,703
|
|
|
3
|
%
|
% of revenue
|
|
|
29.6
|
%
|
|
|
31.9
|
%
|
|
|
|
|
|
30.8
|
%
|
|
|
31.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense (income), net
|
|
|
19
|
|
|
|
5
|
|
|
—
|
|
|
|
|
41
|
|
|
|
14
|
|
|
—
|
|
Other (income) expense, net
|
|
|
(88
|
)
|
|
|
(17
|
)
|
|
—
|
|
|
|
|
(168
|
)
|
|
|
(82
|
)
|
|
—
|
|
Income before income taxes
|
|
|
1,323
|
|
|
|
1,135
|
|
|
17
|
%
|
|
|
|
3,718
|
|
|
|
3,550
|
|
|
5
|
%
|
Income tax expense
|
|
|
182
|
|
|
|
185
|
|
|
-2
|
%
|
|
|
|
486
|
|
|
|
636
|
|
|
-24
|
%
|
Effective tax rate
|
|
|
13.8
|
%
|
|
|
16.3
|
%
|
|
|
|
|
|
13.1
|
%
|
|
|
17.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
1,141
|
|
|
$
|
950
|
|
|
20
|
%
|
|
|
$
|
3,232
|
|
|
$
|
2,914
|
|
|
11
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.69
|
|
|
$
|
0.56
|
|
|
23
|
%
|
|
|
$
|
1.95
|
|
|
$
|
1.71
|
|
|
14
|
%
|
Diluted
|
|
$
|
0.68
|
|
|
$
|
0.55
|
|
|
24
|
%
|
|
|
$
|
1.91
|
|
|
$
|
1.67
|
|
|
14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
1,653.1
|
|
|
|
1,693.8
|
|
|
|
|
|
|
1,661.5
|
|
|
|
1,703.2
|
|
|
|
Diluted
|
|
|
1,686.3
|
|
|
|
1,737.3
|
|
|
|
|
|
|
1,696.4
|
|
|
|
1,748.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common share
|
|
$
|
0.18
|
|
|
$
|
0.16
|
|
|
|
|
|
$
|
0.52
|
|
|
$
|
0.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NIKE, Inc.
|
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
February 28,
|
|
|
February 29,
|
|
|
|
(Dollars in millions)
|
|
2017
|
|
|
2016
|
|
|
% Change
|
ASSETS
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and equivalents
|
|
$
|
4,021
|
|
|
$
|
3,044
|
|
|
32
|
%
|
Short-term investments
|
|
|
2,139
|
|
|
|
2,062
|
|
|
4
|
%
|
Accounts receivable, net
|
|
|
3,752
|
|
|
|
3,368
|
|
|
11
|
%
|
Inventories
|
|
|
4,932
|
|
|
|
4,590
|
|
|
7
|
%
|
Prepaid expenses and other current assets
|
|
|
1,361
|
|
|
|
1,782
|
|
|
-24
|
%
|
Total current assets
|
|
|
16,205
|
|
|
|
14,846
|
|
|
9
|
%
|
Property, plant and equipment, net
|
|
|
3,793
|
|
|
|
3,329
|
|
|
14
|
%
|
Identifiable intangible assets, net
|
|
|
283
|
|
|
|
281
|
|
|
1
|
%
|
Goodwill
|
|
|
139
|
|
|
|
131
|
|
|
6
|
%
|
Deferred income taxes and other assets1
|
|
|
2,732
|
|
|
|
2,381
|
|
|
15
|
%
|
TOTAL ASSETS
|
|
$
|
23,152
|
|
|
$
|
20,968
|
|
|
10
|
%
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
$
|
6
|
|
|
$
|
7
|
|
|
-14
|
%
|
Notes payable
|
|
|
23
|
|
|
|
—
|
|
|
100
|
%
|
Accounts payable
|
|
|
1,938
|
|
|
|
1,714
|
|
|
13
|
%
|
Accrued liabilities1
|
|
|
3,228
|
|
|
|
3,223
|
|
|
0
|
%
|
Income taxes payable
|
|
|
76
|
|
|
|
35
|
|
|
117
|
%
|
Total current liabilities
|
|
|
5,271
|
|
|
|
4,979
|
|
|
6
|
%
|
Long-term debt
|
|
|
3,472
|
|
|
|
2,031
|
|
|
71
|
%
|
Deferred income taxes and other liabilities1
|
|
|
1,687
|
|
|
|
1,658
|
|
|
2
|
%
|
Redeemable preferred stock
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
Shareholders' equity
|
|
|
12,722
|
|
|
|
12,300
|
|
|
3
|
%
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
$
|
23,152
|
|
|
$
|
20,968
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
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
|
|
NINE MONTHS ENDED
|
|
%
|
|
Currency
|
(Dollars in millions)
|
|
2/28/2017
|
|
|
2/29/2016
|
|
|
Change
|
|
Changes1
|
|
2/28/2017
|
|
|
2/29/2016
|
|
|
Change
|
|
Changes1
|
North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
$
|
2,490
|
|
$
|
2,404
|
|
|
4
|
%
|
|
3
|
%
|
|
$
|
7,227
|
|
$
|
6,932
|
|
|
4
|
%
|
|
4
|
%
|
Apparel
|
|
|
1,154
|
|
|
1,115
|
|
|
3
|
%
|
|
3
|
%
|
|
|
3,744
|
|
|
3,583
|
|
|
4
|
%
|
|
4
|
%
|
Equipment
|
|
|
138
|
|
|
164
|
|
|
-16
|
%
|
|
-16
|
%
|
|
|
492
|
|
|
514
|
|
|
-4
|
%
|
|
-4
|
%
|
Total
|
|
|
3,782
|
|
|
3,683
|
|
|
3
|
%
|
|
3
|
%
|
|
|
11,463
|
|
|
11,029
|
|
|
4
|
%
|
|
4
|
%
|
Western Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
990
|
|
|
985
|
|
|
1
|
%
|
|
6
|
%
|
|
|
3,002
|
|
|
2,958
|
|
|
1
|
%
|
|
6
|
%
|
Apparel
|
|
|
445
|
|
|
392
|
|
|
14
|
%
|
|
21
|
%
|
|
|
1,430
|
|
|
1,217
|
|
|
18
|
%
|
|
23
|
%
|
Equipment
|
|
|
64
|
|
|
65
|
|
|
-2
|
%
|
|
5
|
%
|
|
|
215
|
|
|
207
|
|
|
4
|
%
|
|
9
|
%
|
Total
|
|
|
1,499
|
|
|
1,442
|
|
|
4
|
%
|
|
10
|
%
|
|
|
4,647
|
|
|
4,382
|
|
|
6
|
%
|
|
11
|
%
|
Central & Eastern Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
232
|
|
|
237
|
|
|
-2
|
%
|
|
1
|
%
|
|
|
694
|
|
|
658
|
|
|
5
|
%
|
|
9
|
%
|
Apparel
|
|
|
110
|
|
|
102
|
|
|
8
|
%
|
|
8
|
%
|
|
|
368
|
|
|
361
|
|
|
2
|
%
|
|
5
|
%
|
Equipment
|
|
|
20
|
|
|
20
|
|
|
0
|
%
|
|
0
|
%
|
|
|
68
|
|
|
67
|
|
|
1
|
%
|
|
6
|
%
|
Total
|
|
|
362
|
|
|
359
|
|
|
1
|
%
|
|
3
|
%
|
|
|
1,130
|
|
|
1,086
|
|
|
4
|
%
|
|
7
|
%
|
Greater China
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
776
|
|
|
719
|
|
|
8
|
%
|
|
14
|
%
|
|
|
2,155
|
|
|
1,918
|
|
|
12
|
%
|
|
18
|
%
|
Apparel
|
|
|
271
|
|
|
235
|
|
|
15
|
%
|
|
22
|
%
|
|
|
895
|
|
|
787
|
|
|
14
|
%
|
|
19
|
%
|
Equipment
|
|
|
28
|
|
|
28
|
|
|
0
|
%
|
|
7
|
%
|
|
|
100
|
|
|
101
|
|
|
-1
|
%
|
|
4
|
%
|
Total
|
|
|
1,075
|
|
|
982
|
|
|
9
|
%
|
|
15
|
%
|
|
|
3,150
|
|
|
2,806
|
|
|
12
|
%
|
|
18
|
%
|
Japan
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
153
|
|
|
133
|
|
|
15
|
%
|
|
8
|
%
|
|
|
470
|
|
|
383
|
|
|
23
|
%
|
|
8
|
%
|
Apparel
|
|
|
67
|
|
|
52
|
|
|
29
|
%
|
|
21
|
%
|
|
|
197
|
|
|
158
|
|
|
25
|
%
|
|
10
|
%
|
Equipment
|
|
|
16
|
|
|
20
|
|
|
-20
|
%
|
|
-24
|
%
|
|
|
52
|
|
|
48
|
|
|
8
|
%
|
|
-4
|
%
|
Total
|
|
|
236
|
|
|
205
|
|
|
15
|
%
|
|
8
|
%
|
|
|
719
|
|
|
589
|
|
|
22
|
%
|
|
8
|
%
|
Emerging Markets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
|
673
|
|
|
596
|
|
|
13
|
%
|
|
17
|
%
|
|
|
2,060
|
|
|
1,940
|
|
|
6
|
%
|
|
15
|
%
|
Apparel
|
|
|
222
|
|
|
228
|
|
|
-3
|
%
|
|
3
|
%
|
|
|
719
|
|
|
721
|
|
|
0
|
%
|
|
8
|
%
|
Equipment
|
|
|
55
|
|
|
55
|
|
|
0
|
%
|
|
2
|
%
|
|
|
163
|
|
|
168
|
|
|
-3
|
%
|
|
3
|
%
|
Total
|
|
|
950
|
|
|
879
|
|
|
8
|
%
|
|
13
|
%
|
|
|
2,942
|
|
|
2,829
|
|
|
4
|
%
|
|
12
|
%
|
Global Brand Divisions2
|
|
|
19
|
|
|
17
|
|
|
12
|
%
|
|
12
|
%
|
|
|
55
|
|
|
61
|
|
|
-10
|
%
|
|
-10
|
%
|
Total NIKE Brand
|
|
|
7,923
|
|
|
7,567
|
|
|
5
|
%
|
|
7
|
%
|
|
|
24,106
|
|
|
22,782
|
|
|
6
|
%
|
|
8
|
%
|
Converse
|
|
|
498
|
|
|
489
|
|
|
2
|
%
|
|
3
|
%
|
|
|
1,488
|
|
|
1,442
|
|
|
3
|
%
|
|
4
|
%
|
Corporate3
|
|
|
11
|
|
|
(24
|
)
|
|
—
|
|
|
—
|
|
|
|
79
|
|
|
(92
|
)
|
|
—
|
|
|
—
|
|
Total NIKE, Inc. Revenues
|
|
$
|
8,432
|
|
$
|
8,032
|
|
|
5
|
%
|
|
7
|
%
|
|
$
|
25,673
|
|
$
|
24,132
|
|
|
6
|
%
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total NIKE Brand
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footwear
|
|
$
|
5,314
|
|
$
|
5,074
|
|
|
5
|
%
|
|
7
|
%
|
|
$
|
15,608
|
|
$
|
14,789
|
|
|
6
|
%
|
|
8
|
%
|
Apparel
|
|
|
2,269
|
|
|
2,124
|
|
|
7
|
%
|
|
9
|
%
|
|
|
7,353
|
|
|
6,827
|
|
|
8
|
%
|
|
10
|
%
|
Equipment
|
|
|
321
|
|
|
352
|
|
|
-9
|
%
|
|
-7
|
%
|
|
|
1,090
|
|
|
1,105
|
|
|
-1
|
%
|
|
1
|
%
|
Global Brand Divisions2
|
|
|
19
|
|
|
17
|
|
|
12
|
%
|
|
12
|
%
|
|
|
55
|
|
|
61
|
|
|
-10
|
%
|
|
-10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
%
|
|
|
NINE MONTHS ENDED
|
|
%
|
(Dollars in millions)
|
|
2/28/2017
|
|
|
|
2/29/2016
|
|
|
Change
|
|
|
2/28/2017
|
|
|
|
2/29/2016
|
|
|
Change
|
North America
|
|
$
|
980
|
|
|
$
|
903
|
|
|
9
|
%
|
|
|
$
|
2,896
|
|
|
$
|
2,827
|
|
|
2
|
%
|
Western Europe
|
|
|
290
|
|
|
|
334
|
|
|
-13
|
%
|
|
|
|
918
|
|
|
|
1,126
|
|
|
-18
|
%
|
Central & Eastern Europe
|
|
|
57
|
|
|
|
69
|
|
|
-17
|
%
|
|
|
|
196
|
|
|
|
243
|
|
|
-19
|
%
|
Greater China
|
|
|
381
|
|
|
|
358
|
|
|
6
|
%
|
|
|
|
1,127
|
|
|
|
1,015
|
|
|
11
|
%
|
Japan
|
|
|
49
|
|
|
|
36
|
|
|
36
|
%
|
|
|
|
147
|
|
|
|
119
|
|
|
24
|
%
|
Emerging Markets
|
|
|
193
|
|
|
|
202
|
|
|
-4
|
%
|
|
|
|
601
|
|
|
|
701
|
|
|
-14
|
%
|
Global Brand Divisions2
|
|
|
(598
|
)
|
|
|
(625
|
)
|
|
4
|
%
|
|
|
|
(1,988
|
)
|
|
|
(1,874
|
)
|
|
-6
|
%
|
TOTAL NIKE BRAND
|
|
|
1,352
|
|
|
|
1,277
|
|
|
6
|
%
|
|
|
|
3,897
|
|
|
|
4,157
|
|
|
-6
|
%
|
Converse
|
|
|
109
|
|
|
|
127
|
|
|
-14
|
%
|
|
|
|
340
|
|
|
|
359
|
|
|
-5
|
%
|
Corporate3
|
|
|
(119
|
)
|
|
|
(264
|
)
|
|
55
|
%
|
|
|
|
(478
|
)
|
|
|
(952
|
)
|
|
50
|
%
|
TOTAL EARNINGS BEFORE INTEREST AND TAXES
|
|
|
1,342
|
|
|
|
1,140
|
|
|
18
|
%
|
|
|
|
3,759
|
|
|
|
3,564
|
|
|
5
|
%
|
Interest expense (income), net
|
|
|
19
|
|
|
|
5
|
|
|
—
|
|
|
|
|
41
|
|
|
|
14
|
|
|
—
|
|
TOTAL INCOME BEFORE INCOME TAXES
|
|
$
|
1,323
|
|
|
$
|
1,135
|
|
|
17
|
%
|
|
|
$
|
3,718
|
|
|
$
|
3,550
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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/20170321006511/en/
Source: NIKE, Inc.