NIKE, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share data) Years Ended May 31, 2020 2019 Revenues $ 37,403 100.0% $ 39,117 Cost of sales 21,162 21.643 Gross profit 16,241 17,474 Demand creation expense 3,592 3,753 Operating overhead expense 9,534 8.949 Total selling and administrative expense 13, 126 12,702 Interest expense (income), net 89 49 Other (income) expense, net 139 (78) Income before income taxes 2.887 4,801 Income tax expense 348 772 NET INCOME $ 2.539 4,029 Earnings per common share: Basic $ 1.63 $ 2.55 Diluted $ 1.60 $ 2.49 Weighted average common shares outstanding: Basic 1,558.8 1,579.7 Diluted 1,591.6 1,618.4 Vertical Analysis 2018 $ 36,397 20.441 15,956 3,577 7,934 11,511 54 66 4,325 2,392 1.933 $ 99 $ $ 1.19 1.17 1,623.8 1,659.1 $ NIKE, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share data) Years Ended May 31, 2020 Cha | 6 Cha. Revenues $ 37.403 (1,714) (4%) Cost of sales 21.162 Gross profit 16.241 Demand creation expense 3.592 Operating overhead expense 0.534 Total selling and administrative expense 13,120 Interest expense (income), net 80 Other (income) expense, net 130 Income before income taxes 2.887 Income tax expense 348 NET INCOME 2,539 Earnings per common share Basic $ 1.63 Diluted $ Weighted average common shares outstanding: Basic 1.558.8 Diluted 1.591.6 2019 30.117 21.643 17.474 3.753 8.040 12.702 40 (78) 4.801 772 4,029 Horizontal Analysis $ Cha % Cha 2018 36.397 20,441 15.956 3.577 7,034 11,511 54 00 4,325 2.392 1,933 $ 2.55 2.49 1.10 1.17 1.60 1,570.7 1,618.4 1.623.8 1.650.1 NIKE, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED MAY 31, 2020 2019 2,539 $ 4,0295 2018 1,933 s Dollars 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 Total other comprehensive income (loss), net of tax TOTAL COMPREHENSIVE INCOME (173) 503 (8) 76 (148) (130) (9) (287) 2,252 $ 323 4,352 $ 34 104 2,037 $ The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement Table of Contents NIKE, INC. CONSOLIDATED STATEMENTS OF INCOME S (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, 2020 2019 37,403 S 39,117 S 21,162 21,643 16.241 17.474 3,592 3.753 9.534 8.949 13.126 12.702 89 49 139 (78) 2.887 4,801 348 772 2,539 $ 4,029 $ 2018 38,397 20,441 15.956 3,577 7,934 11.511 54 68 4,325 2.392 1,933 $ Earnings per common share: Basic Diluted 1.19 S S 1.63 S 1.60 $ 2.55 $ 2.49 S 1.17 Weighted average common shares outstanding: Basic Diluted 1.558.8 1.591.6 1.579.7 1.618.4 1.623.8 1.659.1 The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement