e. 37.2 days 38.4 X days f. 9. days days h. i. j. Number of days' sales in receivables Inventory turnover Number of days' sales in inventory Ratio of liabilities to stockholders' equity Asset turnover Return on total assets Return on common stockholders' equity Price-earnings ratio, assuming that the market price was $54.90 per share on May 29, 2016, and $52.81 per share on May 30, 2015. Percentage relationship of net income to sales % % k. % % I. m. % % Accounts receivable at May 31, 2014: $3,117 Inventories at May 31, 2014: 3,947 Total assets at May 31, 2014: 18,594 Stockholders' equity at May 31, 2014: 12,000 NIKE, Inc. Consolidated Statements of Income (In millions, except per share data) Revenues Cost of sales Gross profit Demand creation expense Operating overhead expense Total selling and administrative expense Interest expense (income), net Other (income) expense, net Income before income taxes Income tax expense 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) (58) 4,623 4,205 863 3,760 3,273 2014 27,799 15,353 12,446 3,031 5,735 8,766 33 103 3,544 851 2,693 932 Earnings per common share: Basic Diluted 1.90 2.21 2.16 $ $ $ $ 1.52 1.49 1.85 Dividends declared per common share 0.62 $ 0.54 $ 0.47 2014 2,693 NIKE, Inc. Consolidated Statements of Comprehensive Income Year Ended May 31, (In millions) 2016 2015 Net income 3,760 3,273 Other comprehensive income (loss), net of tax: Change in net foreign currency translation adjustment (176) (20) Change in net gains (losses) on cash flow hedges (2) (757) 1,188 Change in net gains (losses) on other (7) Total other comprehensive income (loss), net of tax (928) 1,161 TOTAL COMPREHENSIVE INCOME 2,832 4,434 (1) Net of tax benefit (expense) of $0 million, 50 million and $0 million, respectively. (2) Net of tax benefit (expense) of $35 million, $(31) million and $18 million, respectively. (3) Net of tax benefit (expense) of $0 million, $0 million and $0 million, respectively. (32) (161) 5 (189) 2,504 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 (In millions) 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 Deferred income taxes and other assets TOTAL ASSETS 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 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 earnings Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 1 2,191 3,037 85 5,358 2,010 1,770 107 74 2,131 3,949 71 6,332 1,079 1,479 3 7,786 318 4,151 12,258 21,396 3 6,773 1,246 4,685 12,707 21,597 $ 2014 2,693 518 (11) 177 68 56 43 (298) (505) (210) 525 3,013 (5,386) 3,932 1,126 NIKE, Inc. Consolidated Statements of Cash Flows Year Ended May 31, (In millions) 2016 2015 Cash provided by operations: Net income 3,760 $ 3,273 $ Income charges (credits) not affecting cash: Depreciation 649 606 Deferred income taxes (80) (113) Stock-based compensation 236 191 Amortization and other 13 Net foreign currency adjustments 98 424 Changes in certain working capital components and other assets and liabilities: Decrease increase) in accounts receivable 60 (216) (Increase) in inventories (590) (621) (Increase) in prepaid expenses and other current assets (161) (144) (Decrease) increase in accounts payable, accrued liabilities and income taxes payable (889) 1,237 Cash provided by operations 3,096 4,680 Cash used by investing activities: Purchases of short-term investments (5,367) (4,936) Maturities of short-term investments 2,924 3,655 Sales of short-term investments 2,386 2,216 Investments in reverse repurchase agreements 150 (150) Additions to property, plant and equipment (1,143) (963) Disposals of property, plant and equipment 10 Decrease increase) in other assets, net of other liabilities 6 Cash used by investing activities (1,034) (175) Cash used by financing activities: Net proceeds from long-term debt issuance 981 Long-term debt payments, including current portion (106) (7) (Decrease) increase in notes payable (67) (63) Payments on capital lease obligations (7) (19) Proceeds from exercise of stock options and other stock issuances 507 514 Excess tax benefits from share-based payment arrangements 281 218 Repurchase of common stock (3,238) (2,534) Dividends - common and preferred (1,022) (899) Cash used by financing activities (2,671) (2,790) Effect of exchange rate changes on cash and equivalents (105) (83) Net (decrease) increase in cash and equivalents (714) 1,632 Cash and equivalents, beginning of year 3,852 2,220 CASH AND EQUIVALENTS, END OF YEAR 3,138 3,852 Supplemental disclosure of cash flow information: Cash paid during the year for: Interest, net of capitalized interest 70 53 $ Income taxes 748 1,262 Non-cash additions to property, plant and equipment 252 206 Dividends declared and not paid 271 3 (880) 3 (2) (1,207) (60) 75 (17) 383 132 (2,628) (799) (2,914) (9) (1,117) 3,337 2,220 53 856 167 209 240 NIKE, Inc. Consolidated Statements of Shareholders' Equity 78 - Capital in Accumulated Common Stock Excess Other Class A Class B of Stated Comprehensive Retained (In millions, 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 (1) 22 445 445 Conversion to Class B Common Stock 1 Repurchase of Class B Common Stock (73) (11) (2,617) (2,628) Dividends on common stock ($0.47 per share) (821) (821) Issuance of shares to employees 3 78 Stock-based compensation 177 177 Forfeiture of shares from employees (1) (8) (12) Net income 2,693 2,693 Other comprehensive income (loss) (189) (189) Balance at May 31, 2014 355 $ 1,385 $ 3 $ 5,865 $ 85 $ 4,871 $ 10,824 Stock options exercised 27 639 639 Repurchase of Class B Common Stock (58) (9) (2,525) (2,534) Dividends on common stock ($0.54 per share) (931) (931) Issuance of shares to employees 3 92 92 Stock-based compensation 191 191 Forfeiture of shares from employees () (3) Net income 3,273 3,273 Other comprehensive income (loss) 1,161 1,161 Balance at May 31, 2015 355 $ 1,357 $ 3 $ 6,773 $ 1,246 $ 4,685 $ 12,707 Stock options exercised 22 680 680 Conversion to Class B Common Stock 2 Repurchase of Class B Common Stock (55) (8) (3,230) (3,238) Dividends on common stock ($0.62 per share) (1,053) (1,053) Issuance of shares to employees 3 115 Stock-based compensation 236 236 Forfeiture of shares from employees (10) (11) (21) Net income 3,760 3,760 Other comprehensive income (loss) (928) (928) Balance at May 31, 2016 353 $ 1,329 $ 7,786 $ 318 $ 4,151 $ 12,258 (5) 115 3