Please explain the following in a paragraph form, all that is needed is the information within the document.

Explain what you learn about the disclosures of your SEC 10K company relating to Income Taxes. Your comments should relate to net income or loss as well as to the balance sheet treatment and disclosure in the notes to the financial statements. Additionally consider the concept of risk and the aggressiveness of positions taken. Category: Investments 1. Identify and explain the investments disclosed by your SEC 10K company? Where are the disclosed? Is there information you cannot access due to generalization and issues of materiality? 2. Identify and explain trends in the investment holdings of your SEC 10K company, comparing this fiscal year to previous years. What detail do you learn from the notes to the financial statements? Category: Revenue Recognition 1. How is the concept of revenue recognition disclosed in your SEC 10K? Identify and explain the recognition issues faced by your company. 2. Describe the sales and revenue issues of your company in terms of customers and sales types. Category: Reporting Stockholders' Equity 1. Explain the relevancy of your company's statement of stockholders' equity. Your comments should include column titles as well as line items. Any surprises related to items not included or items displayed? What changes do you observe? An example would be treasury stock. 2. Retained earnings or accumulated deficits: comment on the activity reporting, including references to previous fiscal year activity. Category: Common Stock, Dividends, and other activity 1. Describe activity for this fiscal year and others disclosed relating to common stock, dividends, and related activity. 2. Comment on concepts such as stock compensation and stock options. What do you learn from the notes to the financial statements regarding these items? Category: Accumulated Other Comprehensive Income / (Loss) 1. Compare and contract items in the area of Accumulated Other Comprehensive Income / (Loss) for this fiscal year with other years disclosed in the statement of shareholders' equity. 2. Provide additional details about accumulated other comprehensive income based on your review of the notes to the financial statements. Category: Liabilities 1. What were the company's liabilities as displayed on the balance sheet for the most recent fiscal year? Comment on the trend in total liabilities, both current and long term. 2. Notes to the financial statements: What more do you learn about liabilities from these details? Category: Contingencies 1. Identify and describe any contingencies. How are they disclosed? 2. Considering materiality as one component, what do you learn about contingencies from your review of the notes to the financial statements? Category: Defining Contingencies 1. What goals might management have regarding the disclosure of contingencies? 2. Identify and explain gain contingencies as they apply to your company. 3. Identify and explain loss contingencies as they apply to your company. Works Cited SEC 10-K. (2015, 7 23). Retrieved from 2015 Nike, Inc. Annual Report: https://www.sec.gov/Archives/edgar/data/320187/000032018715000113ke5312015x10k.htm#s1C9F725DCA8DB9C4CF77E8276268A5D0 Income taxes The income tax expense has been increasing from 2013 through 2015. The income tax was $805 million in 2013. This rose to $851 million in 2014 and finally to $932 million in 2015. The increase in income taxes corresponds with the increase in the net income. The net income rose from $2,472 million in 2013 to $2,693 million in 2014 then to $ 3,273 million in 2015. Foreign income taxes are higher than United States income taxes in 2013 and 2015 due to recognition of a deferred tax charge except for 2014 when U.S. income taxes exceeded foreign income taxes. The income taxes were initially lower due to lower tax rate jurisdictions but later rose due to the resolution reached by the company with IRS on a U.S. Unilateral Advanced Pricing Agreement that led to the increase in the effective tax rate. Investments The investments of Nike Inc. are recoded in the balance sheet (short-term investments) and in note 6 of the notes to financial statements. The short-term investments amounted to $2,922 million in 2014 and decreased to $2,072 million in 2015. In 2014, the company did not have any trading or held-to-maturity investments. In both 2014 and 2015, the short-term investment consisted of available-for-sale investments. The investments held by the company include U.S. Treasury securities, time deposits, and U.S. Agency securities. Revenue recognition The issues faced by Nike Inc. with regard to revenue recognition is that in May 2014 FASB issued a new accounting standard that replaced the existing recognition principle. The company has not yet selected a transition method and are currently evaluating the effect the guidance will have on their consolidated financial position or results of operations. Another issue is that the company depends on estimates and if these estimates turn out to be incorrect (if they defer with the actual) their resulting operating results might be adversely affected. Nike Inc. records wholesale revenues when title passes and the risks and rewards of ownership have passed to the customer, based on the terms of sale. Title passes generally upon shipment or upon receipt by the customer depending on the country of the sale and the agreement with the customer. Retail store revenues are recorded at the time of sale and online store revenues are recorded upon delivery to the customer. Recording stockholders' equity Nike Inc. did not report any Class A convertible common stock in 2014 and 2015. However, the company recorded $ 3 million Class B common stock both in 2014 and 2015. The authorized number of shares of Class A Common Stock, no par value, and Class B Common Stock, no par value, are 200 million and 1,200 million, respectively. This implies that all the class A shares were converted to class B shares. The retained earnings reduced from $ 4,872 million in 2014 to $4,685 million in 2015. This can be attributed to the increase in the dividends per share from $0.93 to $1.08 Common stock, dividends and other activity 2 million class A shares were converted to class B in 2012. 34 million class B shares were repurchased in 2012, 37 shares in 2013 and 29 shares in 2014. The dividends declared per share was $0.93 in 2014 and $1.08 in 2015. This led to the decline in the dividends yield from 1.3% in 2014 to 1.2% in 2015.The stock-based compensation expense increased gradually from 2013 to 2o15. In 2013, stock based compensation was $174 million, it increased to $177 million in 2014 and then to $191 million in 2015. Accumulated and other comprehensive income The accumulated other comprehensive income was $274 million in 2013. This dropped to $85 million in 2014 and then followed a significant increase to $1,246 in 2015.the drop in 2014 was a result of high other comprehensive losses. Liabilities The current liabilities for Nike Inc. amounted to $5,027 in 2014 and $6,334 in 2015. These comprised of current portion of long term debt, accounts payables, notes payable, accrued liabilities and income tax payable. The long term liabilities amounted to $2,743 in 2014 and this declined to $2,559 in 2015. This is a positive improvement towards reducing debt to equity ratio of the company. Contingencies Nike Inc. recognized no contingencies in its balance sheet. However, from note 16 to the financial statements, the company acknowledges that it is involved in various legal proceedings involving contractual and employment relationships, product liability claims, trademark rights and a variety of other matters. The outcome of these cannot be predicted with certainty. The lesson learnt here is that a company cannot recognize contingencies unless the can be reasonably be estimated with certainty and are probable to occur. Income taxes The income tax expense has been increasing from 2013 through 2015. The income tax was $805 million in 2013. This rose to $851 million in 2014 and finally to $932 million in 2015. The increase in income taxes corresponds with the increase in the net income. The net income rose from $2,472 million in 2013 to $2,693 million in 2014 then to $ 3,273 million in 2015. Foreign income taxes are higher than United States income taxes in 2013 and 2015 due to recognition of a deferred tax charge except for 2014 when U.S. income taxes exceeded foreign income taxes. The income taxes were initially lower due to lower tax rate jurisdictions but later rose due to the resolution reached by the company with IRS on a U.S. Unilateral Advanced Pricing Agreement that led to the increase in the effective tax rate. Investments The investments of Nike Inc. are recoded in the balance sheet (short-term investments) and in note 6 of the notes to financial statements. The short-term investments amounted to $2,922 million in 2014 and decreased to $2,072 million in 2015. In 2014, the company did not have any trading or held-to-maturity investments. In both 2014 and 2015, the short-term investment consisted of available-for-sale investments. The investments held by the company include U.S. Treasury securities, time deposits, and U.S. Agency securities. Revenue recognition The issues faced by Nike Inc. with regard to revenue recognition is that in May 2014 FASB issued a new accounting standard that replaced the existing recognition principle. The company has not yet selected a transition method and are currently evaluating the effect the guidance will have on their consolidated financial position or results of operations. Another issue is that the company depends on estimates and if these estimates turn out to be incorrect (if they defer with the actual) their resulting operating results might be adversely affected. Nike Inc. records wholesale revenues when title passes and the risks and rewards of ownership have passed to the customer, based on the terms of sale. Title passes generally upon shipment or upon receipt by the customer depending on the country of the sale and the agreement with the customer. Retail store revenues are recorded at the time of sale and online store revenues are recorded upon delivery to the customer. Recording stockholders' equity Nike Inc. did not report any Class A convertible common stock in 2014 and 2015. However, the company recorded $ 3 million Class B common stock both in 2014 and 2015. The authorized number of shares of Class A Common Stock, no par value, and Class B Common Stock, no par value, are 200 million and 1,200 million, respectively. This implies that all the class A shares were converted to class B shares. The retained earnings reduced from $ 4,872 million in 2014 to $4,685 million in 2015. This can be attributed to the increase in the dividends per share from $0.93 to $1.08 Common stock, dividends and other activity 2 million class A shares were converted to class B in 2012. 34 million class B shares were repurchased in 2012, 37 shares in 2013 and 29 shares in 2014. The dividends declared per share was $0.93 in 2014 and $1.08 in 2015. This led to the decline in the dividends yield from 1.3% in 2014 to 1.2% in 2015.The stock-based compensation expense increased gradually from 2013 to 2o15. In 2013, stock based compensation was $174 million, it increased to $177 million in 2014 and then to $191 million in 2015. Accumulated and other comprehensive income The accumulated other comprehensive income was $274 million in 2013. This dropped to $85 million in 2014 and then followed a significant increase to $1,246 in 2015.the drop in 2014 was a result of high other comprehensive losses. Liabilities The current liabilities for Nike Inc. amounted to $5,027 in 2014 and $6,334 in 2015. These comprised of current portion of long term debt, accounts payables, notes payable, accrued liabilities and income tax payable. The long term liabilities amounted to $2,743 in 2014 and this declined to $2,559 in 2015. This is a positive improvement towards reducing debt to equity ratio of the company. Contingencies Nike Inc. recognized no contingencies in its balance sheet. However, from note 16 to the financial statements, the company acknowledges that it is involved in various legal proceedings involving contractual and employment relationships, product liability claims, trademark rights and a variety of other matters. The outcome of these cannot be predicted with certainty. The lesson learnt here is that a company cannot recognize contingencies unless the can be reasonably be estimated with certainty and are probable to occur