NIKE, Inc. Consolidated Statements of Comprehensive Income NIKE, Inc. Consolidated Statements of Comprehensive Income Year Ended May 31, 2015 2014 3,273 $ 2,693 $ $ 2013 2,472 (in Millions Net income Other comprehensive income (loss), net of tax Change in net foreign currency translation adjustment Change in net gains (losses) on cash flow hedges Change in net gains (losses) on other Change in release of cumulative translation loss related to Umbro Total other comprehensive income (oss), net of tax TOTAL COMPREHENSIVE INCOME (20) 1,188 (32) (161) (8) 83 1.161 4,434 125 2,597 $ (189) 2,504 $ $ (1) Nerof tax benefexpense of $0 milions milion and $113 million, respectively, 2) Net of tax benefit fexpense of $(31) milion $18 milion and $122) Milion, respectively. 3 Net of tax benefit axpense of million, So milion and $1 million, respectvely 14 Net of tax benefit opense of million, So milion and $47 million, respectively The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement NIKE, Inc. Consolidated Balance Sheets NIKE, Inc. Consolidated Balance Sheets May 31, 2015 2014 $ 3,852 2,072 3.358 4,337 389 1.968 15,976 3,011 2.220 2.922 3,434 3,947 355 818 13.696 2.834 282 281 131 131 2,201 21,600 1,651 18,594 $ S $ $ An millions ASSETS Current assets: Cash and equivalents (Note 6) Short-term investments (Note 6) Accounts receivable, net (Note 1) Inventories (Notes 1 and 2) Deferred income taxes (Note 9) Prepaid expenses and other current assets Notes 6 and 17) Total current assets Property, plant and equipment, net (Note 3) Identifiable intangible assets, net (Note 4) Goodwill (Note 4) Deferred income taxes and other assets /Notes 6, 9 and 17) TOTAL ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt (Note 8) Notes payable (Note 7) Accounts payable (Note 7) Accrued liabilities (Notes 5, 6 and 17) Income taxes payable (Note 9) Total current liabilities Long-term debt (Note 8) Deferred income taxes and other liabilities Notes 6, 9, 13 and 17) Commitments and contingencies (Note 16) Redeemable preferred stock (Note 10) Shareholders' equity: Common stock at stated value (Note 11): Class A convertible - 178 and 178 shares outstanding Class B - 679 and 692 shares outstanding Capital in excess of stated value Accumulated other comprehensive income (Note 14) Retained earnings Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 107 - 74 2,131 3,951 71 167 1,930 2,491 432 5.027 1,199 1.544 6.334 1,079 1,480 6.773 1.246 4.685 12.707 21,600 5,865 85 4.871 10.824 18,594 S S The accompanying Mofes to the Consolidated Financial Statements are an integral part of this statement. NIKE, Inc. Consolidated Statements of Cash Flows Year Ended May 31, 2014 2015 2013 3.273 $ 2.693 $ 606 (113) 191 518 (11) 177 2.472 438 20 174 64 66 (124) 424 (216) (621) (144) 1.237 4.680 (298) (506) (210) 525 3,013 142 (219) (28) 27 3,032 (4.133) (4.936) 3.655 2.216 (150) 1963) (5.386) 3.932 1.126 1.663 1.330 (880) An millions) Cash provided by operations: Net income Income charges (credits) not affecting cash: Depreciation Deferred income taxes Stock-based compensation (Note 11) Amortization and other Net foreign currency adjustments Net gain on divestitures Changes in certain working capital components and other assets and liabilities: (Increase) decrease in accounts receivable Increase) in inventories (Increase) in prepaid expenses and other current assets 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 Sales of short-term investments Investments in reverse repurchase agreements Additions to property, plant and equipment Disposals of property, plant and equipment Proceeds from divestitures Increase) in other assets, net of other labilities Cash used by investing activities Cash used by financing activities: Net proceeds from long-term debt issuance Long-term debt 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 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 (598) 14 786 12 (1.207) (940) 986 (49) 10 163 (19) 514 218 (2,534) (899) (2.790) (83) 1.632 2.220 ,852 (60) 75 (17) 383 132 (2.628) (799) (2.914) 19) (1.117) 3.337 2,220 313 72 (1.674) 703) (1.045) 36 1.083 2.254 3,337 S 3 S $ $ 20 53 $ 1.262 206 240 53 856 167 209 702 137 1 88 The accompanying Notes to the Consolidatedral Su its are an integral part of this statement NIKE, Inc. Consolidated Statements of Shareholders' Equity + Common Stock - Class A Class B Shares Amount Shares Amount 180 $ - 736 $ 3 Capital in Accumulated Excess Other of Stated Comprehensive Retained Value Income Earnings $ 4,641 S 149 $ 5,526 322 Total $ 10,319 322 10 (1.657) (1.647) (727) (4) 2,472 178 S - 716 S 3 $ 5,184 445 S 125 274 $ 5,620 in millions, except per share data) Balance at May 31, 2012 Stock options exercised Conversion to Class B Common Stock Repurchase of Class B Common Stock Dividends on common stock ($0.81 per share) Issuance of shares to employees Stock-based compensation (Note 11) Forfeiture of shares from employees Net income Other comprehensive income loss) Balance at May 31, 2013 Stock options exercised Repurchase of Class B Common Stock Dividends on common stock ($0.93 per share) Issuance of shares to employees Stock-based compensation (Note 11) Forfeiture of shares from employees Net income Other comprehensive income loss) Balance at May 31, 2014 Stock options exercised Repurchase of Class B Common Stock Dividends on common stock ($1.08 per share) Issuance of shares to employees Stock-based compensation (Note 11) Forfeiture of shares from employees Net income Other comprehensive income (loss) Balance at May 31, 2015 (727) 65 174 (12) 2,472 125 $ 11,081 445 (2.628) (821) 78 177 (12) 2.693 (2.617) (821) 177 2.693 (189 178 $ - 692 $ 3 (189) 85 $ 5,865 $ $ 639 (9) 4,871 $ 10,824 639 (2.525) (2.534) (931) (931) 2 191 191 3) 3.273 1.161 3.273 1.161 S 12,707 178 $ - 679 $ 3 $ 6,773 S 1 ,246 $ 4,685 The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement. NIKE, Inc. Consolidated Statements of Income NIKE, Inc. Consolidated Statements of Income Year Ended May 31, 2014 2015 2013 30.601 $ 16,534 14,067 3,213 6,679 9,892 27.799 $ 15.353 12.446 3.031 5.735 8.766 33 103 3,544 851 2,693 25,313 14,279 11.034 2.745 5.051 7,796 (In millions, except per share data) Income from continuing operations: Revenues Cost of sales Gross profit Demand creation expense Operating overhead expense Total selling and administrative expense Interest expense (income), net (Notes 6, 7 and 8) Other income) expense, net (Note 17) Income before income taxes Income tax expense (Note 9) NET INCOME FROM CONTINUING OPERATIONS NET INCOME FROM DISCONTINUED OPERATIONS NET INCOME Earnings per common share from continuing operations: Basic (Notes 1 and 12) Diluted (Notes 1 and 12) Earnings per common share from discontinued operations: Basic (Notes 1 and 12) Diluted (Notes 1 and 12) Dividends declared per common share (58) 4,205 902 3,273 (15) 3,256 805 2.451 21 $ 3,273 $ 2,693 $ 2.472 S 3.80 3.70 $ $ 3.05 S 2.97 $ 2.74 2.68 - $ - $ $ 0.02 0.02 0.81 1.08 - 0.93 $ $ $ The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement. Students will independently complete the requirements to 14-101 Nike, Inc Problem. This assignment will require the submission of two documents. Document 1 will be an excel spreadsheet in good form providing the required calculations. The content calculations should be labeled. Each calculation will need to be supported with the respective numbers required to complete the computation. Documents 2 will be a one page word document that is singled spaced, with justified alignment and the font of Calibri size 11. The conclusions should be written with correct grammar, subject and verb agreement Points will be deducted for poorly written responses. Students will be graded in four ways: Correct Calculations (30pts) Presentation of calculations: labeling, support of computation (10 pts) Thought out responses provided to address conclusions drawn from the analysis (30 pts) Correct grammar usage and correct formatting (10pts) Students will independently complete the requirements to 14-10i Nike, Inc Problem. This assignment will require the submission of two documents. Document 1 will be an excel spreadsheet in good form providing the required calculations. The content calculations should be labeled. Each calculation will need to be supported with the respective numbers required to complete the computation. Documents 2 will be a one page word document that is singled spaced, with justified alignment and the font of Calibri size 11. The conclusions should be written with correct grammar, subject and verb agreement. Points will be deducted for poorly written responses. Students will be graded in four ways: Correct Calculations (30pts) Presentation of calculations: labeling, support of computation (10 pts) Thought out responses provided to address conclusions drawn from the analysis (30 pts) Correct grammar usage and correct formatting (10pts) This assignment is to be submitted in blackboard and is due by April 23, 2020 @ 5:30pm. NIKE, Inc. Consolidated Statements of Income Year Ended May 31, 2014 2015 $ 30.601 $ 16.534 14.067 3213 6.679 9.892 28 27.799 15.353 12.446 3.031 5.735 8.766 25.313 14.279 11.034 2.745 5.051 7.796 33 15 3.256 in mi except per shared Income from continuing operations Revenues Cost of sales Gross profit Demand creation cense Operating overhead expense Total seling and administrative expense Interest expense (income).net Notes 6, 7 and 8) Other income expense.net Note 17) Income before income taxes Income tax expense Note NET INCOME FROM CONTINUING OPERATIONS NET INCOME FROM DISCONTINUED OPERATIONS NET INCOME Earnings per common share from continuing operations Basic (Notes 1 and 12) Diluted Notes 1 and 12) Earnings per common share from discontinued operations: Basic (Notes 1 and 12) Diluted (Notes 1 and 12) Didends declared per common share December Sho 4,205 932 3.273 103 3.544 851 2,693 2.451 3.273 $ 2.693 2.472 3.80 3.70 $ S 305 S 2.97 $ 2.74 2.68 S 0.02 0.02 0.81 003 o t NIKE, Inc. Consolidated Statements of Comprehensive Income NIKE, Inc. Consolidated Statements of Comprehensive Income 2015 Year Ended May 31, 2014 2.693 $ 2.472 (161) Net income Other comprehensive income foss), net of tax Change in net foreign currency translation adjustments Change in net gains (losses) on cash flow hedges Change in net gains losses) on other Change in release of cumulative translation loss related to Umbro Total other comprehensive income foss), net of tax TOTAL COMPREHENSIVE INCOME Notaben e of $0 milion monand 8/1.3More Norberr 363 milion $18 million and Notabene per 30 milion 30 min and million, respectively How of tax benefperner of milions mon and $47 milion respectroy The accompanying to the Contoad Frencial Statements en t re tot 4,434 (182 2.504 2.597 NIKE, Inc. Consolidated Balance Sheets 2015 3.852 S 2.072 3.358 4,337 399 1.968 15.976 3.011 281 131 2201 21.800 2.220 2.922 3.434 3.9.47 355 818 13,606 2834 282 18.594 TO ASSETS Current assets Cash and equivalents Note 6 Short-term investments Note 6) Accounts receivable net (Note 1) Invertores Notes 1 and 2 Deferred income taxes Note) Prepaid expenses and other current assets Notes 6 and 17) Total current assets Property, plant and equipment, net Note 3) ortable intangible assets.net Note 4 Goodwil Note 4 Deferred nome d other states 6.9 and 17 TOTAL ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY Current abilities Current portion of long-term et Note 8) Notes payable Note 7) Accounts payable Note 7) Accrued abilities Notes 5. 6 and 17 Income taxes payable Note 9 Total current labis Long-term debt Note 8 Deferred income taxes and other abilities Notes 6. 9. 13 and 17) Commitments and contingencies Note 16 Redeemable preferred stock Note 10) Shareholders' equity Common stock at stated value Note 11 Class A convertible - 178 and 178 shares outstanding Class B - 679 and 682 shares outstanding Capital in excess of stated value Accumulated other comprehensive income Note 14) Retained earnings Total shareholders gut TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY The accompag n ons are put of this start 174 2.131 3,051 Sle 6334 1.079 1.199 6.773 1.246 4.685 12.707 21,600 S 10.824 18.594 L NIKE, Inc. Consolidated Statements of Cash Flows BE DS 02 38 8888 Cash provided by operations Netcome Income charges foredits not affecting cash Depreciation Deferred income taxes Stock-based compensation Note 1) Amortization and other Not forgn currencyadustments Net ganon divestitures Changes in ootan working cap components and other assets Increased decrease in accounts receivable norento Anore in prepaid expenses and other current sets norman d income Cash provided by operations Cash used by investing activities: Purchases of short-term investments Matures of short term investments Sales of short-term investments Investments in reverse repurchase agreements Addons to properly plant and equipment Dupa of property, plant and e mert Proceeds from the of other Cash used by investigat Cash used by financing activities No proces from long terme Long-term payments nouding current portion Decrease increase in notes payable Payments on c l ase obligations Proceeds from Exercise of stock options and other stock issuances Excess tax benefits from spare-based payment arrangements Repurchase of common stock Dubends common and promed Cach used by tanong activities Enost of change rate changes on cash and equivalen in cash and SQUrts Cash and equires, Degrwg of your CASH AND EQUIVALENTS, END OF YEAR Supplemental disclosure of cash flow information Cash paid during the year for Interest, niet of capitalized interest Income Non-cash addition to property, plant and equipment Dividendes declared and not pad The accorgerska p s: 1888 & TELE ELE 3 1 83 18 sl Sla 928 E le 3 8 NIKE, Inc. Consolidated Statements of Shareholders' Equity NIKE, Inc. Consolidated Statements of Shareholders' Equity 23 Common - 33 res Amount bgs Capital in Excess of Stated Value Accumulated Other Comprehensive I ncome Retained 13 81382 I DESSIN lel pershed Balance at May 31, 2012 Stock options exercised Conversion to Class B Common Stock Repurchase of Class B Common Stock Dividends on common stock (50 81 per share ance of shares to employees Stock-based compensation (Note 11) Forture of shares from employees Net income O Domo we income foss Balance at May 31, 2013 Stock options exercised Repurchase of Class Common Stock Dividends on common stock 003 per share ance of shares to employees Stock-based compensation (Note 11) Fortolture of shares from employees No income m oms Balance at May 31, 2014 Stock options exercised Repurchase of a common Stock Dividends on common stock ($1.08 por share Issuance of res to employees Stock-based compensation Note 11) Fortue of shares from employees Net income Other comprehensive income foss) Balance at May 31, 2015 The accompagn ano S 1 18:20 I 78 EEN 1. 16 1 .161 246 S40512707 S a patos HERE RSS NIKE, Inc. Consolidated Statements of Comprehensive Income NIKE, Inc. Consolidated Statements of Comprehensive Income Year Ended May 31, 2015 2014 3,273 $ 2,693 $ $ 2013 2,472 (in Millions Net income Other comprehensive income (loss), net of tax Change in net foreign currency translation adjustment Change in net gains (losses) on cash flow hedges Change in net gains (losses) on other Change in release of cumulative translation loss related to Umbro Total other comprehensive income (oss), net of tax TOTAL COMPREHENSIVE INCOME (20) 1,188 (32) (161) (8) 83 1.161 4,434 125 2,597 $ (189) 2,504 $ $ (1) Nerof tax benefexpense of $0 milions milion and $113 million, respectively, 2) Net of tax benefit fexpense of $(31) milion $18 milion and $122) Milion, respectively. 3 Net of tax benefit axpense of million, So milion and $1 million, respectvely 14 Net of tax benefit opense of million, So milion and $47 million, respectively The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement NIKE, Inc. Consolidated Balance Sheets NIKE, Inc. Consolidated Balance Sheets May 31, 2015 2014 $ 3,852 2,072 3.358 4,337 389 1.968 15,976 3,011 2.220 2.922 3,434 3,947 355 818 13.696 2.834 282 281 131 131 2,201 21,600 1,651 18,594 $ S $ $ An millions ASSETS Current assets: Cash and equivalents (Note 6) Short-term investments (Note 6) Accounts receivable, net (Note 1) Inventories (Notes 1 and 2) Deferred income taxes (Note 9) Prepaid expenses and other current assets Notes 6 and 17) Total current assets Property, plant and equipment, net (Note 3) Identifiable intangible assets, net (Note 4) Goodwill (Note 4) Deferred income taxes and other assets /Notes 6, 9 and 17) TOTAL ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt (Note 8) Notes payable (Note 7) Accounts payable (Note 7) Accrued liabilities (Notes 5, 6 and 17) Income taxes payable (Note 9) Total current liabilities Long-term debt (Note 8) Deferred income taxes and other liabilities Notes 6, 9, 13 and 17) Commitments and contingencies (Note 16) Redeemable preferred stock (Note 10) Shareholders' equity: Common stock at stated value (Note 11): Class A convertible - 178 and 178 shares outstanding Class B - 679 and 692 shares outstanding Capital in excess of stated value Accumulated other comprehensive income (Note 14) Retained earnings Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 107 - 74 2,131 3,951 71 167 1,930 2,491 432 5.027 1,199 1.544 6.334 1,079 1,480 6.773 1.246 4.685 12.707 21,600 5,865 85 4.871 10.824 18,594 S S The accompanying Mofes to the Consolidated Financial Statements are an integral part of this statement. NIKE, Inc. Consolidated Statements of Cash Flows Year Ended May 31, 2014 2015 2013 3.273 $ 2.693 $ 606 (113) 191 518 (11) 177 2.472 438 20 174 64 66 (124) 424 (216) (621) (144) 1.237 4.680 (298) (506) (210) 525 3,013 142 (219) (28) 27 3,032 (4.133) (4.936) 3.655 2.216 (150) 1963) (5.386) 3.932 1.126 1.663 1.330 (880) An millions) Cash provided by operations: Net income Income charges (credits) not affecting cash: Depreciation Deferred income taxes Stock-based compensation (Note 11) Amortization and other Net foreign currency adjustments Net gain on divestitures Changes in certain working capital components and other assets and liabilities: (Increase) decrease in accounts receivable Increase) in inventories (Increase) in prepaid expenses and other current assets 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 Sales of short-term investments Investments in reverse repurchase agreements Additions to property, plant and equipment Disposals of property, plant and equipment Proceeds from divestitures Increase) in other assets, net of other labilities Cash used by investing activities Cash used by financing activities: Net proceeds from long-term debt issuance Long-term debt 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 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 (598) 14 786 12 (1.207) (940) 986 (49) 10 163 (19) 514 218 (2,534) (899) (2.790) (83) 1.632 2.220 ,852 (60) 75 (17) 383 132 (2.628) (799) (2.914) 19) (1.117) 3.337 2,220 313 72 (1.674) 703) (1.045) 36 1.083 2.254 3,337 S 3 S $ $ 20 53 $ 1.262 206 240 53 856 167 209 702 137 1 88 The accompanying Notes to the Consolidatedral Su its are an integral part of this statement NIKE, Inc. Consolidated Statements of Shareholders' Equity + Common Stock - Class A Class B Shares Amount Shares Amount 180 $ - 736 $ 3 Capital in Accumulated Excess Other of Stated Comprehensive Retained Value Income Earnings $ 4,641 S 149 $ 5,526 322 Total $ 10,319 322 10 (1.657) (1.647) (727) (4) 2,472 178 S - 716 S 3 $ 5,184 445 S 125 274 $ 5,620 in millions, except per share data) Balance at May 31, 2012 Stock options exercised Conversion to Class B Common Stock Repurchase of Class B Common Stock Dividends on common stock ($0.81 per share) Issuance of shares to employees Stock-based compensation (Note 11) Forfeiture of shares from employees Net income Other comprehensive income loss) Balance at May 31, 2013 Stock options exercised Repurchase of Class B Common Stock Dividends on common stock ($0.93 per share) Issuance of shares to employees Stock-based compensation (Note 11) Forfeiture of shares from employees Net income Other comprehensive income loss) Balance at May 31, 2014 Stock options exercised Repurchase of Class B Common Stock Dividends on common stock ($1.08 per share) Issuance of shares to employees Stock-based compensation (Note 11) Forfeiture of shares from employees Net income Other comprehensive income (loss) Balance at May 31, 2015 (727) 65 174 (12) 2,472 125 $ 11,081 445 (2.628) (821) 78 177 (12) 2.693 (2.617) (821) 177 2.693 (189 178 $ - 692 $ 3 (189) 85 $ 5,865 $ $ 639 (9) 4,871 $ 10,824 639 (2.525) (2.534) (931) (931) 2 191 191 3) 3.273 1.161 3.273 1.161 S 12,707 178 $ - 679 $ 3 $ 6,773 S 1 ,246 $ 4,685 The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement. NIKE, Inc. Consolidated Statements of Income NIKE, Inc. Consolidated Statements of Income Year Ended May 31, 2014 2015 2013 30.601 $ 16,534 14,067 3,213 6,679 9,892 27.799 $ 15.353 12.446 3.031 5.735 8.766 33 103 3,544 851 2,693 25,313 14,279 11.034 2.745 5.051 7,796 (In millions, except per share data) Income from continuing operations: Revenues Cost of sales Gross profit Demand creation expense Operating overhead expense Total selling and administrative expense Interest expense (income), net (Notes 6, 7 and 8) Other income) expense, net (Note 17) Income before income taxes Income tax expense (Note 9) NET INCOME FROM CONTINUING OPERATIONS NET INCOME FROM DISCONTINUED OPERATIONS NET INCOME Earnings per common share from continuing operations: Basic (Notes 1 and 12) Diluted (Notes 1 and 12) Earnings per common share from discontinued operations: Basic (Notes 1 and 12) Diluted (Notes 1 and 12) Dividends declared per common share (58) 4,205 902 3,273 (15) 3,256 805 2.451 21 $ 3,273 $ 2,693 $ 2.472 S 3.80 3.70 $ $ 3.05 S 2.97 $ 2.74 2.68 - $ - $ $ 0.02 0.02 0.81 1.08 - 0.93 $ $ $ The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement. Students will independently complete the requirements to 14-101 Nike, Inc Problem. This assignment will require the submission of two documents. Document 1 will be an excel spreadsheet in good form providing the required calculations. The content calculations should be labeled. Each calculation will need to be supported with the respective numbers required to complete the computation. Documents 2 will be a one page word document that is singled spaced, with justified alignment and the font of Calibri size 11. The conclusions should be written with correct grammar, subject and verb agreement Points will be deducted for poorly written responses. Students will be graded in four ways: Correct Calculations (30pts) Presentation of calculations: labeling, support of computation (10 pts) Thought out responses provided to address conclusions drawn from the analysis (30 pts) Correct grammar usage and correct formatting (10pts) Students will independently complete the requirements to 14-10i Nike, Inc Problem. This assignment will require the submission of two documents. Document 1 will be an excel spreadsheet in good form providing the required calculations. The content calculations should be labeled. Each calculation will need to be supported with the respective numbers required to complete the computation. Documents 2 will be a one page word document that is singled spaced, with justified alignment and the font of Calibri size 11. The conclusions should be written with correct grammar, subject and verb agreement. Points will be deducted for poorly written responses. Students will be graded in four ways: Correct Calculations (30pts) Presentation of calculations: labeling, support of computation (10 pts) Thought out responses provided to address conclusions drawn from the analysis (30 pts) Correct grammar usage and correct formatting (10pts) This assignment is to be submitted in blackboard and is due by April 23, 2020 @ 5:30pm. NIKE, Inc. Consolidated Statements of Income Year Ended May 31, 2014 2015 $ 30.601 $ 16.534 14.067 3213 6.679 9.892 28 27.799 15.353 12.446 3.031 5.735 8.766 25.313 14.279 11.034 2.745 5.051 7.796 33 15 3.256 in mi except per shared Income from continuing operations Revenues Cost of sales Gross profit Demand creation cense Operating overhead expense Total seling and administrative expense Interest expense (income).net Notes 6, 7 and 8) Other income expense.net Note 17) Income before income taxes Income tax expense Note NET INCOME FROM CONTINUING OPERATIONS NET INCOME FROM DISCONTINUED OPERATIONS NET INCOME Earnings per common share from continuing operations Basic (Notes 1 and 12) Diluted Notes 1 and 12) Earnings per common share from discontinued operations: Basic (Notes 1 and 12) Diluted (Notes 1 and 12) Didends declared per common share December Sho 4,205 932 3.273 103 3.544 851 2,693 2.451 3.273 $ 2.693 2.472 3.80 3.70 $ S 305 S 2.97 $ 2.74 2.68 S 0.02 0.02 0.81 003 o t NIKE, Inc. Consolidated Statements of Comprehensive Income NIKE, Inc. Consolidated Statements of Comprehensive Income 2015 Year Ended May 31, 2014 2.693 $ 2.472 (161) Net income Other comprehensive income foss), net of tax Change in net foreign currency translation adjustments Change in net gains (losses) on cash flow hedges Change in net gains losses) on other Change in release of cumulative translation loss related to Umbro Total other comprehensive income foss), net of tax TOTAL COMPREHENSIVE INCOME Notaben e of $0 milion monand 8/1.3More Norberr 363 milion $18 million and Notabene per 30 milion 30 min and million, respectively How of tax benefperner of milions mon and $47 milion respectroy The accompanying to the Contoad Frencial Statements en t re tot 4,434 (182 2.504 2.597 NIKE, Inc. Consolidated Balance Sheets 2015 3.852 S 2.072 3.358 4,337 399 1.968 15.976 3.011 281 131 2201 21.800 2.220 2.922 3.434 3.9.47 355 818 13,606 2834 282 18.594 TO ASSETS Current assets Cash and equivalents Note 6 Short-term investments Note 6) Accounts receivable net (Note 1) Invertores Notes 1 and 2 Deferred income taxes Note) Prepaid expenses and other current assets Notes 6 and 17) Total current assets Property, plant and equipment, net Note 3) ortable intangible assets.net Note 4 Goodwil Note 4 Deferred nome d other states 6.9 and 17 TOTAL ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY Current abilities Current portion of long-term et Note 8) Notes payable Note 7) Accounts payable Note 7) Accrued abilities Notes 5. 6 and 17 Income taxes payable Note 9 Total current labis Long-term debt Note 8 Deferred income taxes and other abilities Notes 6. 9. 13 and 17) Commitments and contingencies Note 16 Redeemable preferred stock Note 10) Shareholders' equity Common stock at stated value Note 11 Class A convertible - 178 and 178 shares outstanding Class B - 679 and 682 shares outstanding Capital in excess of stated value Accumulated other comprehensive income Note 14) Retained earnings Total shareholders gut TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY The accompag n ons are put of this start 174 2.131 3,051 Sle 6334 1.079 1.199 6.773 1.246 4.685 12.707 21,600 S 10.824 18.594 L NIKE, Inc. Consolidated Statements of Cash Flows BE DS 02 38 8888 Cash provided by operations Netcome Income charges foredits not affecting cash Depreciation Deferred income taxes Stock-based compensation Note 1) Amortization and other Not forgn currencyadustments Net ganon divestitures Changes in ootan working cap components and other assets Increased decrease in accounts receivable norento Anore in prepaid expenses and other current sets norman d income Cash provided by operations Cash used by investing activities: Purchases of short-term investments Matures of short term investments Sales of short-term investments Investments in reverse repurchase agreements Addons to properly plant and equipment Dupa of property, plant and e mert Proceeds from the of other Cash used by investigat Cash used by financing activities No proces from long terme Long-term payments nouding current portion Decrease increase in notes payable Payments on c l ase obligations Proceeds from Exercise of stock options and other stock issuances Excess tax benefits from spare-based payment arrangements Repurchase of common stock Dubends common and promed Cach used by tanong activities Enost of change rate changes on cash and equivalen in cash and SQUrts Cash and equires, Degrwg of your CASH AND EQUIVALENTS, END OF YEAR Supplemental disclosure of cash flow information Cash paid during the year for Interest, niet of capitalized interest Income Non-cash addition to property, plant and equipment Dividendes declared and not pad The accorgerska p s: 1888 & TELE ELE 3 1 83 18 sl Sla 928 E le 3 8 NIKE, Inc. Consolidated Statements of Shareholders' Equity NIKE, Inc. Consolidated Statements of Shareholders' Equity 23 Common - 33 res Amount bgs Capital in Excess of Stated Value Accumulated Other Comprehensive I ncome Retained 13 81382 I DESSIN lel pershed Balance at May 31, 2012 Stock options exercised Conversion to Class B Common Stock Repurchase of Class B Common Stock Dividends on common stock (50 81 per share ance of shares to employees Stock-based compensation (Note 11) Forture of shares from employees Net income O Domo we income foss Balance at May 31, 2013 Stock options exercised Repurchase of Class Common Stock Dividends on common stock 003 per share ance of shares to employees Stock-based compensation (Note 11) Fortolture of shares from employees No income m oms Balance at May 31, 2014 Stock options exercised Repurchase of a common Stock Dividends on common stock ($1.08 por share Issuance of res to employees Stock-based compensation Note 11) Fortue of shares from employees Net income Other comprehensive income foss) Balance at May 31, 2015 The accompagn ano S 1 18:20 I 78 EEN 1. 16 1 .161 246 S40512707 S a patos HERE RSS
