Below are the Consolidated Statements of Income and Consolidated Balance Sheets in part 8 of the annual report for Nike Inc.
Using Excel, Prepare a horizontal analysis of each statement comparing 2015 and 2016 with the information below.
PART II NIKE, Inc. Consolidated Statements of Income in maillons, except per share data) Revenues Cost of sales Gross profit Demand creation expense Operating overhead expense Total selling and administrative expense Inforest expense (income), net Other (income expense, net Income before income taxes Income tax expens NET INCOME Year Ended May 31, 2016 2015 32,376 $ 30,601 $ 17,405 16,534 14,971 14,067 3,278 3,213 7,191 6,679 10,469 9,892 19 28 (140) 4,623 4,205 863 232 3.760 $ 3.273 $ 2014 27,799 15,353 12,446 3.031 5,735 8,766 33 103 3.544 851 2,693 $ Earnings per common share: Basic Diluted $ $ 2.21 $ 2.16 $ 1.90 1.86 $ $ 1.52 1.49 $ 0.62 $ 0.54 $ 0.47 Dividends declared per common share The accompanying Notes to the Consolated Financial Stators are an integral part of this statement - FORM 10-K NIKE, INC. 2016 Annual Report and Notice of Annual Meeting 99 PART II NIKE, Inc. Consolidated Statements of Comprehensive Income Year Ended May 31, 2016 2015 3,760 $ 3.273 2014 2,693 $ $ An milions) Not income Other comprehensive income foss), net of taxe Change in net foreign currency translation adjustment) Change in not gains (losses) on cash flow hedges? Change in net gains (losses) on other Total other comprehensive income (oss), net of tax TOTAL COMPREHENSIVE INCOME (176) (757) 20) 1,183 (32) (161) 1928) 2.832 $ 1,161 4.434 (189) 2.504 $ $ (V Net ofte benefit fexpense of $0 milion $0 milon and $0 milion, respectively R] Mer oft beneft expense of $35 milion $31) milionand $18 milion expectively Maroto benefit opens of milion Omonand Omion, repatwady The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement 100 PART II NIKE, Inc. Consolidated Balance Sheets May 31, 2016 2015 $ 3,138 2,319 3,241 4,838 1,489 15,025 3,520 281 131 2,439 21,396 3,852 2,072 3,358 4,337 1,968 15,587 3,011 281 131 2,587 21,597 $ $ $ 44 $ 107 74 An malang ASSETS Current assets: Cash and equivalents Short-term investments Accounts receivable, net Inventories Prepaid expenses and other current assets Total current assets Property, plant and equipment, net Identifiable intangible assets, net Goodwill Dried income taws and other assots TOTAL ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt Notos payablo Accounts payable Accnund abilities Income taxes pervable Total current liabilities Long-terrn debt Deferred income taxes and other liabilities Commitments and contingencies Redeemable preferred stock Shareholders' equity: Common stock at stated value Class A convertible - 353 and 355 shares outstanding Class B 1,329 and 1,357 shares outstanding Capital in excess of stated value Accumulated other comprehensive income Retained earrings Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY The accompanying Notes to the Cowoted Financial Statements an integral part of this statement 2,131 3,949 2,191 3,037 99 5,358 2,010 1,770 6,332 1,079 1,479 - FORM 10-K 7,786 318 4,151 12,258 21,396 6,773 1,246 4,685 12,707 21,597 $ $ NIKE, INC. 2016 Annual Report and Notice of Amual Meeting 101 PART II NIKE, Inc. Consolidated Statements of Cash Flows 2016 Year Ended May 31, 2015 2014 3,760 $ 3,273 $ 2,693 649 518 606 (113) 191 236 177 13 98 424 56 60 15200 (161) (A 3.096 216) (521) (144) 1,237 4.680 (298) (505) (210) 525 3,013 (5,367) 2,924 2.386 150 (1.143) (4,936) 3,655 2216 (150) 1963) 15,386) 3,932 1,126 (880) fin millions) Cash provided by operations: Net income Income charges (credits) not affecting cash: Depreciation Dobred income taxas Stock-based compensation Amortization and other Not foreign currency adjustments Changes in certain working capital components and other assets and liabilities: Decrease increase in accounts receivable Increase in inventories (Increase) in prepaid expenses and other current assets Decrease increase in accounts payable, accrued liabilities and income taxes payable Cash provided by operations Cash used by investing activities: Purchases of short term investments Maturities of short-term investments Salas of short-term investments Investments in reverse repurchase agreements Additions to property, plant and equipment Disposals of property, plant and equipment Decrease increase) in other wts, net of other labilities Cash used by investing activities Cash used by financing activities: Net proceeds from long-term debt issuance Long-term dobt payments, including current portion (Decrease increase in notes payable Payments on capital lease obligations Proceeds from exercise of stock options and other stock issuances Excess tax benefits from share-based payment arrangements Repurchase of common stock Dividends - common and preferred Cash used by financing activities Effect of exchange rate changes on cash and equivalents Net (decrease) increase in cash and equivalents Cash and equivalents, beginning of year CASH AND EQUIVALENTS, END OF YEAR Supplemental disclosure of cash flow information: Cash paid during the year for: Interest, net of capitalized interest Income taxes Non-cash additions to property, plant and equipment Dividends declared and not paid The accompanying Nantes to the Consoliuted Financial Statements are an integral part of this statement 2 (1.034) (175) (1,207) 981 (106) (67) (7) (19) 507 514 (60) 75 (17) 383 132 (2,628) 1799) 281 2.2381 (1,022) 2,671) (105) (714) 3.82 3.138 218 12,534) 1899) 2,790) 1939 1.632 2220 3,852 $ 12,914 (1,117) 3,337 2,220 $ $ 70 $ 53 748 856 53 $ 1,262 206 240 252 271 209 PART II NIKE, Inc. Consolidated Statements of Shareholders' Equity (73 866 Common Stock Capital in Accumulated Class A Other Class B Class B xcess of Stated Comprehensive Retained In milions, except per share data) Shares Amount Shares Amount Value Income Earnings Total Balance at May 31, 2013 356 $ - 1,433 $ 3 $ 5,184 $ 274 $ 5,620 $ 11,081 Stock options exercised 22 445 445 Conversion to Class B Common Stock (1) - 1 Repurchase of Class B Common Stock (11) 2.617) (2.628 Dividends on common stock ($0.47 per share) (821) 1821) Issuance of shares to employees 78 78 Stock-based compensation 177 177 Forfeiture of shares from employees (4) (12) Net Income 2,693 2,693 Other comprehensive income (loss) (189) Balance at May 31, 2014 355 $ - 85 $ 4,871 $ 10,824 Stock options exercised 639 Repurchase of Class B Common Stock (2,525) 2,534) Dividends on common stock ($0.54 per share) (931) (931) Issuance of shares to employees 92 Stock-based compensation 191 Forfeiture of shares from employees 3) (8) Net income 3,273 3,273 Other comprehensive incune loss) 1.161 1,161 Balance at May 31, 2015 366 $ - 1,357 6,773 $ 1,246 $ 4,685 $ 12,707 Stock options exercised 680 680 Conversion to Class B Common Stock (2) - 2 Repurchase of Class B Common Stock (8) 13,230) 13,238) Dividends on common stock ($0.62 per share) (1,063) (1,063) Issuance of shares to employees Stock-based compensation 236 236 Forfeiture of shares from employees 410) (21) Next income 3,760 3,760 Other comprehensive income foss) (928) Balance at May 31, 2016 353 $ - 1,329 $ 3 $ 7,796 $ 318 $ 4,151 $ 12,258 The accompanying Notes to the Consoldated Frencial Statements an integral part of this statement 191 FORM 10-K 115 115 NIKE, INC. 2016 Annual Report and Notice of Annual Meeting 103 PART II NIKE, Inc. Consolidated Statements of Income in maillons, except per share data) Revenues Cost of sales Gross profit Demand creation expense Operating overhead expense Total selling and administrative expense Inforest expense (income), net Other (income expense, net Income before income taxes Income tax expens NET INCOME Year Ended May 31, 2016 2015 32,376 $ 30,601 $ 17,405 16,534 14,971 14,067 3,278 3,213 7,191 6,679 10,469 9,892 19 28 (140) 4,623 4,205 863 232 3.760 $ 3.273 $ 2014 27,799 15,353 12,446 3.031 5,735 8,766 33 103 3.544 851 2,693 $ Earnings per common share: Basic Diluted $ $ 2.21 $ 2.16 $ 1.90 1.86 $ $ 1.52 1.49 $ 0.62 $ 0.54 $ 0.47 Dividends declared per common share The accompanying Notes to the Consolated Financial Stators are an integral part of this statement - FORM 10-K NIKE, INC. 2016 Annual Report and Notice of Annual Meeting 99 PART II NIKE, Inc. Consolidated Statements of Comprehensive Income Year Ended May 31, 2016 2015 3,760 $ 3.273 2014 2,693 $ $ An milions) Not income Other comprehensive income foss), net of taxe Change in net foreign currency translation adjustment) Change in not gains (losses) on cash flow hedges? Change in net gains (losses) on other Total other comprehensive income (oss), net of tax TOTAL COMPREHENSIVE INCOME (176) (757) 20) 1,183 (32) (161) 1928) 2.832 $ 1,161 4.434 (189) 2.504 $ $ (V Net ofte benefit fexpense of $0 milion $0 milon and $0 milion, respectively R] Mer oft beneft expense of $35 milion $31) milionand $18 milion expectively Maroto benefit opens of milion Omonand Omion, repatwady The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement 100 PART II NIKE, Inc. Consolidated Balance Sheets May 31, 2016 2015 $ 3,138 2,319 3,241 4,838 1,489 15,025 3,520 281 131 2,439 21,396 3,852 2,072 3,358 4,337 1,968 15,587 3,011 281 131 2,587 21,597 $ $ $ 44 $ 107 74 An malang ASSETS Current assets: Cash and equivalents Short-term investments Accounts receivable, net Inventories Prepaid expenses and other current assets Total current assets Property, plant and equipment, net Identifiable intangible assets, net Goodwill Dried income taws and other assots TOTAL ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt Notos payablo Accounts payable Accnund abilities Income taxes pervable Total current liabilities Long-terrn debt Deferred income taxes and other liabilities Commitments and contingencies Redeemable preferred stock Shareholders' equity: Common stock at stated value Class A convertible - 353 and 355 shares outstanding Class B 1,329 and 1,357 shares outstanding Capital in excess of stated value Accumulated other comprehensive income Retained earrings Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY The accompanying Notes to the Cowoted Financial Statements an integral part of this statement 2,131 3,949 2,191 3,037 99 5,358 2,010 1,770 6,332 1,079 1,479 - FORM 10-K 7,786 318 4,151 12,258 21,396 6,773 1,246 4,685 12,707 21,597 $ $ NIKE, INC. 2016 Annual Report and Notice of Amual Meeting 101 PART II NIKE, Inc. Consolidated Statements of Cash Flows 2016 Year Ended May 31, 2015 2014 3,760 $ 3,273 $ 2,693 649 518 606 (113) 191 236 177 13 98 424 56 60 15200 (161) (A 3.096 216) (521) (144) 1,237 4.680 (298) (505) (210) 525 3,013 (5,367) 2,924 2.386 150 (1.143) (4,936) 3,655 2216 (150) 1963) 15,386) 3,932 1,126 (880) fin millions) Cash provided by operations: Net income Income charges (credits) not affecting cash: Depreciation Dobred income taxas Stock-based compensation Amortization and other Not foreign currency adjustments Changes in certain working capital components and other assets and liabilities: Decrease increase in accounts receivable Increase in inventories (Increase) in prepaid expenses and other current assets Decrease increase in accounts payable, accrued liabilities and income taxes payable Cash provided by operations Cash used by investing activities: Purchases of short term investments Maturities of short-term investments Salas of short-term investments Investments in reverse repurchase agreements Additions to property, plant and equipment Disposals of property, plant and equipment Decrease increase) in other wts, net of other labilities Cash used by investing activities Cash used by financing activities: Net proceeds from long-term debt issuance Long-term dobt payments, including current portion (Decrease increase in notes payable Payments on capital lease obligations Proceeds from exercise of stock options and other stock issuances Excess tax benefits from share-based payment arrangements Repurchase of common stock Dividends - common and preferred Cash used by financing activities Effect of exchange rate changes on cash and equivalents Net (decrease) increase in cash and equivalents Cash and equivalents, beginning of year CASH AND EQUIVALENTS, END OF YEAR Supplemental disclosure of cash flow information: Cash paid during the year for: Interest, net of capitalized interest Income taxes Non-cash additions to property, plant and equipment Dividends declared and not paid The accompanying Nantes to the Consoliuted Financial Statements are an integral part of this statement 2 (1.034) (175) (1,207) 981 (106) (67) (7) (19) 507 514 (60) 75 (17) 383 132 (2,628) 1799) 281 2.2381 (1,022) 2,671) (105) (714) 3.82 3.138 218 12,534) 1899) 2,790) 1939 1.632 2220 3,852 $ 12,914 (1,117) 3,337 2,220 $ $ 70 $ 53 748 856 53 $ 1,262 206 240 252 271 209 PART II NIKE, Inc. Consolidated Statements of Shareholders' Equity (73 866 Common Stock Capital in Accumulated Class A Other Class B Class B xcess of Stated Comprehensive Retained In milions, except per share data) Shares Amount Shares Amount Value Income Earnings Total Balance at May 31, 2013 356 $ - 1,433 $ 3 $ 5,184 $ 274 $ 5,620 $ 11,081 Stock options exercised 22 445 445 Conversion to Class B Common Stock (1) - 1 Repurchase of Class B Common Stock (11) 2.617) (2.628 Dividends on common stock ($0.47 per share) (821) 1821) Issuance of shares to employees 78 78 Stock-based compensation 177 177 Forfeiture of shares from employees (4) (12) Net Income 2,693 2,693 Other comprehensive income (loss) (189) Balance at May 31, 2014 355 $ - 85 $ 4,871 $ 10,824 Stock options exercised 639 Repurchase of Class B Common Stock (2,525) 2,534) Dividends on common stock ($0.54 per share) (931) (931) Issuance of shares to employees 92 Stock-based compensation 191 Forfeiture of shares from employees 3) (8) Net income 3,273 3,273 Other comprehensive incune loss) 1.161 1,161 Balance at May 31, 2015 366 $ - 1,357 6,773 $ 1,246 $ 4,685 $ 12,707 Stock options exercised 680 680 Conversion to Class B Common Stock (2) - 2 Repurchase of Class B Common Stock (8) 13,230) 13,238) Dividends on common stock ($0.62 per share) (1,063) (1,063) Issuance of shares to employees Stock-based compensation 236 236 Forfeiture of shares from employees 410) (21) Next income 3,760 3,760 Other comprehensive income foss) (928) Balance at May 31, 2016 353 $ - 1,329 $ 3 $ 7,796 $ 318 $ 4,151 $ 12,258 The accompanying Notes to the Consoldated Frencial Statements an integral part of this statement 191 FORM 10-K 115 115 NIKE, INC. 2016 Annual Report and Notice of Annual Meeting 103
