C-4 Appendix C Selected Excerpts from Nike Inc., Form 10-K for the Fiscal Year Ended May 31, 2018 come form tok for her tenemos en NIKE, Inc. Consolidated Statements of Income (In millions, except per share data) Revenues 2018 36,397 $ Year Ended May 31, 2017 $ 34,350 19,038 15,312 $ 2016 32,376 17,405 Cost of sales 20,441 15,956 14,971 Gross profit Demand creation expense 3,577 3,341 3,278 7,934 7,222 7,191 11,511 10.563 10,469 Operating overhead expense Total selling and administrative expense Interest expense (income), net Other expense (income), net 54 59 19 66 (196) (140) Income before income taxes 4,325 4.886 4,623 Income tax expense 2,392 646 863 NET INCOME $ 1,933 $ 4.240 $ 3,760 Earnings per common share: Basic 1.19 $ 2.56 S 2.21 Diluted $ 1.17 $ 2.51 $ 2.16 Dividends declared per common share S 0.78 $ 0.70 $ 0.62 The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement. NIKE, Inc. Consolidated Balance Sheets May 31, 2018 2017 (In millions) ASSETS Current assets: Cash and equivalents $ 4,249 $ 3,808 Short-term investments 996 Accounts receivable, net Inventories Prepaid expenses and other current assets 3,498 5,261 2,371 3,677 5,055 1,130 1,150 Total current assets 15,134 Property, plant and equipment, net Identifiable intangible assets, net Goodwill 4,454 285 16,061 3,989 283 154 139 Deferred income taxes and other assets 2,509 2,787 TOTAL ASSETS 22,536 $ 23,259 6 S 6 336 325 2,279 2,048 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt Notes payable Accounts payable Accrued liabilities Income taxes payable Total current liabilities Long-term debt Deferred income taxes and other liabilities 3,269 3,011 150 84 6,040 5,474 3,468 3,471 3,216 1,907 NIKE, Inc. Consolidated Balance Sheets May 31, 2018 2017 (In millions) ASSETS Current assets: Cash and equivalents $ 4,249 $ 3,808 Short-term investments 996 Accounts receivable, net Inventories Prepaid expenses and other current assets 3,498 5,261 2,371 3,677 5,055 1,130 1,150 Total current assets 15,134 Property, plant and equipment, net Identifiable intangible assets, net Goodwill 4,454 285 16,061 3,989 283 154 139 Deferred income taxes and other assets 2,509 2,787 TOTAL ASSETS 22,536 $ 23,259 6 S 6 336 325 2,279 2,048 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt Notes payable Accounts payable Accrued liabilities Income taxes payable Total current liabilities Long-term debt Deferred income taxes and other liabilities 3,269 3,011 150 84 6,040 5,474 3,468 3,471 3,216 1,907 Commitments and contingencies (Note 15) Redeemable preferred stock Shareholders' equity: Common stock at stated value: Class A convertible 329 and 329 shares outstanding Class B 1,272 and 1,314 shares outstanding Capital in excess of stated value Accumulated other comprehensive loss Retained earnings Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 3 3 6,384 5.710 (92) 3,517 (213) 6,907 9,812 12,407 22,536 $ 23,259 The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement. Appendix C Selected Excerpts from Nike Inc., Form 10-K for the Fiscal Year Ended May 31, 2018 C-7 NIKE, Inc. Consolidated Statements of Cash Flows Year Ended May 31, 2018 2017 2016 $ 1,933 $ 4,240 $ 3,760 747 706 649 647 (273) (80) 218 215 236 27 10 13 (99) (117) 98 (In millions) Cash provided by operations: Net income Adjustments to reconcile net income to net cash provided by operations: Depreciation Deferred income taxes Stock-based compensation Amortization and other Net foreign currency adjustments Changes in certain working capital components and other assets and liabilities: Decrease increase) in accounts receivable (Increase) in inventories Decrease increase) in prepaid expenses and other current and non-current assets Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities Cash provided by operations Cash provided (used) by investing activities: Purchases of short-term investments Maturities of short-term investments 187 60 (255) (426) (231) (120) (158) 35 (590) (161) (586) 1,515 4,955 3,846 3,399 (4,783) 3,613 (5,928) 3,623 (5,367) 2,924 2,496 2,423 2,386 150 Sales of short-term investments Investments in reverse repurchase agreements Additions to property, plant and equipment Disposals of property, plant and equipment (1,028) (1,105) (1,143) 13 10 (25) (34) 6 276 (1,008) (1,034) 1,482 981 (6) 13 (44) 327 (106) (67) (7) (23) (17) 489 733 507 (4,254) (1,243) (55) (3,223) (1,133) (29) (3,238) (1,022) (22) Other investing activities Cash provided (used) by investing activities Cash used by financing activities: Net proceeds from long-term debt issuance Long-term debt payments, including current portion Increase (decrease) in notes payable Payments on capital lease and other financing obligations Proceeds from exercise of stock options and other stock issuances Repurchase of common stock Dividends common and preferred Tax payments for net share settlement of equity awards Cash used by financing activities Effect of exchange rate changes on cash and equivalents Net increase (decrease) 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 (4,835) 45 (2,148) (20) (2,974) (105) (714) 3,852 441 670 3,808 3,138 $ 4,249 $ 3,808 $ 3,138 125 $ 98 $ 70 529 703 748 294 266 252 320 300 271 NIKE, Inc. Consolidated Statements of Shareholders' Equity Common Stock Class A Class B Capital in Excess of Stated Value Accumulated Other Comprehensive Income Retained Earnings Shares Amount Shares Amount Total 355 $ 1,357 $ 3 $ 4,165 $ 1,246 $ 7,293 $ 12,707 22 680 680 (2) 2 (55) (148) (3,090) (3,238) (1,053) (1,053) 3 105 (11) 94 (In millions, except per share data) Balance at May 31, 2015 Stock options exercised Conversion to Class B Common Stock Repurchase of Class B Common Stock Dividends on common stock ($0.62 per share) and preferred stock ($0.10 per share) Issuance of shares to employees, net of shares withheld for employee taxes Stock-based compensation Net income Other comprehensive income (loss) Balance at May 31, 2016 Stock options exercised Conversion to Class B Common Stock Repurchase of Class B Common Stock Dividends on common stock ($0.70 per share) and preferred stock ($0.10 per share) 236 236 3,760 3,760 (928) (928) 353 $ 1,329 $ 3 $ 5,038 $ 318 $ 6,899 $ 12,258 17 525 525 (24) 24 (60) (189) (3,060) (3,249) (1,159) (1,159) 121 (13) 108 215 215 4,240 4,240 (531) (531) 329 $ 1,314 $ 3 $ 5,710 $ (213) $ 6,907 $ 12,407 24 600 600 Issuance of shares to employees, net of shares withheld for employee taxes Stock-based compensation Net income Other comprehensive income (loss) Balance at May 31, 2017 Stock options exercised Conversion to Class B Common Stock Repurchase of Class B Common Stock Dividends on common stock ($0.78 per share) and preferred stock ($0.10 per share) Issuance of shares to employees, net of shares withheld for employee taxes Stock-based compensation (70) (254) (4,013) (4,267) (1,265) (1,265) 4 110 (28) 82 218 218 Net income 1,933 1,933 104 104 Other comprehensive income (loss) Reclassifications to retained earnings in accordance with ASU 2018-02 17 (17) 6,384 $ (92) $ 3,517 $ 9,812 Balance at May 31, 2018 329 $ 1,272 $ 3 $ The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement. Financial Statement Analysis The financial statements for Nike, Inc., are presented in Appendix C. Use the following additional information (in millions): Accounts receivable at May 31, 2016 $3,241 Inventories at May 31, 2016 4,838 a. b. Total assets at May 31, 2016 21,379 Stockholders' equity at May 31, 2016 12,258 1. Determine the following measures for the fiscal years ended May 31, 2018, and May 31, 2017. Assume 365 days a year. Do not round interim calculations. Round the working capital amount in part (a) to the nearest dollar. Round all other final answers to one decimal place. When required, use the rounded final answers in subsequent computations. May 31, 2018 May 31, 2017 Working capital (in millions) $ $ Current ratio Quick ratio d. Accounts receivable turnover Number of days' sales in receivables days days Inventory turnover 9. Number of days' sales in inventory days days Ratio of liabilities to stockholders' equity Asset turnover C. e. t. h. Return on total assets % % % Return on common stockholders' equity % Price-earnings ratio, assuming that the market price was $72.12 per share on May 29, 2018, and $53.06 per share on May 30, 2017. 2. The working capital between 2017 and 2018. The current and quick ratios both slightly. The margin of protection to creditors The return on total assets during 2018. The accounts receivable turnover and number of days' sales in receivables during 2018. The return on common stockholders' equity