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Please refer to the balance sheet in the attachment and answer the following question. The Operating Profit amount for the year ended May 31st, 2010
Please refer to the balance sheet in the attachment and answer the following question.
The Operating Profit amount for the year ended May 31st, 2010 was:
a) 2210.6mm
b) 2310.6mm
c) 2410.6mm
d) 2510.6mm
Table of Contents NIKE, INC. CONSOLIDATED STATEMENTS OF INCOME Year Ended May 31, 2010 2009 2008 (In millions, except per share data) Revenues Cost of sales $19,014.0 10,213.6 $19,176.1 10,571.7 $18,627.0 10,239.6 Gross margin Selling and administrative expense Restructuring charges (Note 16) Goodwill impairment (Note 4) Intangible and other asset impairment (Note 4) Interest expense (income), net (Notes 6, 7 and 8) Other (income) expense, net (Notes 17 and 18) 8,800.4 6,326.4 6.3 (49.2) 8,604.4 6,149.6 195.0 199.3 202.0 (9.5) (88.5) 8,387.4 5,953.7 (77.1) 7.9 Income before income taxes Income taxes (Note 9) 2,516.9 610.2 1,956.5 469.8 2,502.9 619.5 Net income $ 1,906.7 $ 1,486.7 $ 1,883.4 Basic earnings per common share (Notes 1 and 12) $ 3.93 $ 3.07 $ 3.80 Diluted earnings per common share (Notes 1 and 12) $ 3.86 $ 3.03 $ 3.74 Dividends declared per common share $ 1.06 $ 0.98 $ 0.875 The accompanying notes to consolidated financial statements are an integral part of this statement. 56 Table of Contents NIKE, INC. CONSOLIDATED BALANCE SHEETS May 31, 2010 2009 (In millions) ASSETS Current assets: Cash and equivalents Shortterm investments (Note 6) Accounts receivable, net (Note 1) Inventories (Notes 1 and 2) Deferred income taxes (Note 9) Prepaid expenses and other current assets $ 3,079.1 2,066.8 2,649.8 2,040.8 248.8 873.9 $ 2,291.1 1,164.0 2,883.9 2,357.0 272.4 765.6 10,959.2 9,734.0 1,931.9 467.0 187.6 873.6 1,957.7 467.4 193.5 897.0 $ 14,419.3 $ 13,249.6 $ $ 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 9 and 18) Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of longterm debt (Note 8) Notes payable (Note 7) Accounts payable (Note 7) Accrued liabilities (Notes 5 and 18) Income taxes payable (Note 9) Total current liabilities Longterm debt (Note 8) Deferred income taxes and other liabilities (Notes 9 and 18) Commitments and contingencies (Note 15) Redeemable Preferred Stock (Note 10) Shareholders' equity: Common stock at stated value (Note 11): Class A convertible 90.0 and 95.3 shares outstanding Class B 394.0 and 390.2 shares outstanding Capital in excess of stated value Accumulated other comprehensive income (Note 14) Retained earnings Total shareholders' equity Total liabilities and shareholders' equity The accompanying notes to consolidated financial statements are an integral part of this statement. 57 7.4 138.6 1,254.5 1,904.4 59.3 32.0 342.9 1,031.9 1,783.9 86.3 3,364.2 3,277.0 445.8 855.3 0.3 437.2 842.0 0.3 0.1 2.7 3,440.6 214.8 6,095.5 0.1 2.7 2,871.4 367.5 5,451.4 9,753.7 8,693.1 $ 14,419.3 $ 13,249.6 Table of Contents NIKE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Cash provided by operations: Net income Income charges (credits) not affecting cash: Depreciation Deferred income taxes Stockbased compensation (Note 11) Impairment of goodwill, intangibles and other assets (Note 4) Gain on divestitures (Note 17) Amortization and other Changes in certain working capital components and other assets and liabilities excluding the impact of acquisition and divestitures: Decrease (increase) in accounts receivable Decrease (increase) in inventories (Increase) decrease in prepaid expenses and other current assets Increase (decrease) in accounts payable, accrued liabilities and income taxes payable 2010 Year Ended May 31, 2009 (In millions) 2008 $ 1,906.7 $ 1,486.7 $ 1,883.4 Cash provided by operations 323.7 8.3 159.0 71.8 335.0 (294.1) 170.6 401.3 48.3 303.6 (300.6) 141.0 (60.6) 17.9 181.7 284.6 (69.6) 298.0 (238.0) 32.2 14.1 (220.0) (118.3) (249.8) (11.2) 330.9 3,164.2 1,736.1 1,936.3 Cash used by investing activities: Purchases of shortterm investments Maturities and sales of shortterm investments Additions to property, plant and equipment Disposals of property, plant and equipment Increase in other assets, net of other liabilities Settlement of net investment hedges Acquisition of subsidiary, net of cash acquired (Note 4) Proceeds from divestitures (Note 17) (3,724.4) 2,787.6 (335.1) 10.1 (11.2) 5.5 (2,908.7) 2,390.0 (455.7) 32.0 (47.0) 191.3 (1,865.6) 2,246.0 (449.2) 1.9 (21.8) (76.0) (571.1) 246.0 Cash used by investing activities (1,267.5) (798.1) (489.8) (32.2) (205.4) 364.5 58.5 (741.2) (505.4) (6.8) 177.1 186.6 25.1 (649.2) (466.7) (35.2) 63.7 343.3 63.0 (1,248.0) (412.9) (1,061.2) (733.9) (1,226.1) (47.5) (46.9) Cash used by financing activities: Reductions in longterm debt, including current portion (Decrease) increase in notes payable Proceeds from exercise of stock options and other stock issuances Excess tax benefits from sharebased payment arrangements Repurchase of common stock Dividends common and preferred Cash used by financing activities Effect of exchange rate changes Net increase in cash and equivalents Cash and equivalents, beginning of year 56.8 788.0 2,291.1 157.2 2,133.9 277.2 1,856.7 Cash and equivalents, end of year $ 3,079.1 $ 2,291.1 $ 2,133.9 Supplemental disclosure of cash flow information: Cash paid during the year for: Interest, net of capitalized interest Income taxes Dividends declared and not paid $ $ $ 48.4 537.2 130.7 The accompanying notes to consolidated financial statements are an integral part of this statement. 58 46.7 765.2 121.4 44.1 717.5 112.9 Table of Contents NIKE, INC. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY Accumulated Capital in Other Excess of Comprehensive Stated Income Value Amount (In millions, except per share data) $ 2.7 $ 1,960.0 $ 177.4 372.2 Common Stock Class A Class B Shares Balance at May 31, 2007 Stock options exercised Conversion to Class B Common Stock Repurchase of Class B Common Stock Dividends on Common stock ($0.875 per share) Issuance of shares to employees Stockbased compensation (Note 11): Forfeiture of shares from employees Comprehensive income (Note 14): Net income Other comprehensive income: Foreign currency translation and other (net of tax expense of $101.6) Realized foreign currency translation gain due to divestiture (Note 17) Net loss on cash flow hedges (net of tax benefit of $67.7) Net loss on net investment hedges (net of tax benefit of $25.1) Reclassification to net income of previously deferred losses related to hedge derivatives (net of tax benefit of $49.6) 117.6 Amount $ 0.1 (20.8) Shares 384.1 9.1 20.8 (20.6) (12.3) 1.0 (1.1) 1,883.4 Stock options exercised Conversion to Class B Common Stock Repurchase of Class B Common Stock Dividends on Common stock ($0.98 per share) Issuance of shares to employees Stockbased compensation (Note 11): Forfeiture of shares from employees Comprehensive income (Note 14): Net income Other comprehensive income: Foreign currency translation and other (net of tax benefit of $177.5) Net gain on cash flow hedges (net of tax expense of $167.5) Net gain on net investment hedges (net of tax expense of $55.4) Reclassification to net income of previously deferred net gains related to hedge derivatives (net of tax expense of $39.6) $ 0.1 (1.5) 394.3 $ 2.7 $ 2,497.8 4.0 1.5 (10.6) 167.2 1.1 45.4 170.6 (3.3) $ (46.3) (175.8) (43.5) 127.7 127.7 Balance at May 31, 2009 (0.7) $ 0.1 (5.3) 390.2 $ 2.7 $ 2,871.4 8.6 5.3 (11.3) 379.6 1.3 40.0 159.0 (2.6) $ (0.1) 0.1 394.0 $ 2.7 $ 3,440.6 116.1 1,486.7 1,602.8 367.5 $ 5,451.4 $ 8,693.1 (0.3) 379.6 (754.3) (514.8) 40.0 159.0 (2.9) 1,906.7 (159.2) 87.1 44.8 (159.2) 87.1 44.8 (121.6) (121.6) (3.8) (3.8) 214.8 The accompanying notes to consolidated financial statements are an integral part of this statement. 59 1,486.7 (108.2) (747.5) (514.8) $ 167.2 (639.0) (475.2) 45.4 170.6 (4.0) (108.2) (152.7) $ $ 7,825.3 (335.3) 453.6 106.0 1,906.7 90.0 1,957.4 (15.6) (10.1) (335.3) 453.6 106.0 (6.8) Total Comprehensive income Balance at May 31, 2010 $ 5,073.3 1,486.7 95.3 Stock options exercised Conversion to Class B Common Stock Repurchase of Class B Common Stock Dividends on Common stock ($1.06 per share) Issuance of shares to employees Stockbased compensation (Note 11): Forfeiture of shares from employees Comprehensive income (Note 14): Net income Other comprehensive income: Foreign currency translation and other (net of tax benefit of $71.8) Net gain on cash flow hedges (net of tax expense of $27.8) Net gain on net investment hedges (net of tax expense of $21.2) Reclassification to net income of previously deferred net gains related to hedge derivatives (net of tax expense of $41.7) Reclassification of ineffective hedge gains to net income (net of tax expense of $1.4) 251.4 1,883.4 (15.6) (10.1) (632.7) (475.2) Total Comprehensive income 1,883.4 (46.3) (175.8) (43.5) (6.3) (0.1) $ 7,025.4 372.2 (1,248.0) (432.8) 39.2 141.0 (3.4) 211.9 74.0 96.8 Total 211.9 Total Comprehensive income Adoption of FIN 48 (Note 1 and 9) Adoption of EITF 062 Sabbaticals (net of tax benefit of $6.2) Balance at May 31, 2008 $ 4,885.2 (1,235.7) (432.8) 39.2 141.0 (2.3) (0.1) Retained Earnings 1,906.7 1,754.0 $ 6,095.5 $ 9,753.7Step by Step Solution
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