NIKE, INC. Consolidated Statements of Income Year Ended December 31 (In millions) 2019 2018 Revenues Cost of sales $39,117 $36,397 21,643 20,441 Gross profit 17,474 15,956 Demand creation expense 3,753 3,577 Operating overhead expense 8,949 7,934 Total selling and administrative expense 12,702 11,511 Interest expense (income), net 49 54 Other (income) expense, net (78) 66 Income before income taxes 4,801 4,325 Income tax expense 772 2,392 Net income $4,029 $1,933 Consolidated Balance Sheets May 31 (in millions) 2019 2018 Current Assets Cash and cash equivalents $4,466 $4,249 Short-term investments 197 996 Accounts receivable, net. 4,272 3,498 Inventories 5,622 5,261 Prepaid expenses and other current assets 1,968 1,130 Total current assets 16,525 15,134 Property, plant and equipment, net 4,744 4,454 Identifiable intangible assets, net 283 285 Goodwill 154 154 2,011 2,509 Deferred income taxes Total assets Liabilities and stockholders' equity Current Liabilities Current portion of long-term debt $23,717 $22,536 Notes payable Accounts payable Accrued pension liabilities Income taxes payable Total current liabilities Long-term debt Deferred income taxes and other liabilities $6 9 336 2,612 2,279 5,010 3,269 229 150 7,866 6,040 3,464 3,468 3,347 3,216 Shareholders' equity Class A convertible-315 and 329 shares outstanding Class B-1,253 and 1,272 shares outstanding Capital in excess of stated value Accumulated other comprehensive income (loss) Retained earnings 3 7,163 6,384 231 (92) 1,643 3,517 Total shareholders' equity 9,040 9,812 Total liabilities and stockholders' equity $23,717 $22,536 Consolidated Statement of Cash Flows Year Ended May 31 (in millions) 2019 2018 Cash provided by operations: Net income Adjustments to reconcile net income to net cash provided by operations: Depreciation Deferred income taxes $4,029 $1,933 705 747 647 Stock-based compensation Amortization and other 325 218 15 Net foreign currency adjustments 233 (99) Changes in certain working capital components and other assets and liabilities: (Increase) decrease in accounts receivable (270) 187 (Increase) decrease in inventories (490) (255) (Increase) decrease in prepaid expenses and other current and non-current assets (203) 35 Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities 1,525 1,515 Cash provided by operations 5,903 4,955 Cash provided (used) by investing activities: Purchases of short-term investments (2,937) (4,783) Maturities of short-term investments Sales of short-term investments Additions to property, plant and equipment Disposals of property, plant and equipment Other investing activities. 1,715 3,613 2,072 2,496 (1,119) (1,028) 5 (25) (264) 276 Cash provided (used) by investing activities Cash used by financing activities: Long-term debt payments, including current portion (6) (6) Increase (decrease) in notes payable (325) 13 Payments on capital lease and other financing obligations (27) (23) Proceeds from exercise of stock options and other stock issuances 700 733 Repurchase of common stock (4,286) (4,254) Dividends-common and preferred (1,332) (1,243) 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 (17) (55) (5,293) (4,835) (129) 45 217 441 4,249 3,808 $4,466 $4,249