Prepare a Vertical Analysis of the 2019 Income Statements for Nike, Inc. (F/Y 5/31/19) and Under Armour, Inc. (F/Y 12/31/19), expressing each Income Statement item as a percentage of total revenue. (Total Revenue = 100%.) Assume there are no preferred shares outstanding. For this Part V of the Assignment, please also reference the Financial Statements on pages 55-59 of the F/Y 12/31/19 Annual Report of Under Armour, Inc.

* Use a spreadsheet program to do this part of the assignment.

* Label the spreadsheet Vertical Analysis 2019 Income Statements Nike, Inc. and Under Armour, Inc.

* List each line item from the Income Statement of Under Armour, Inc. (from Net Revenue to Net Income 11 line items in total) in Column A. (Skip Restructuring and impairment charges.)

* In Columns B, enter the 2019 amounts for Nike, Inc.

* In Column D, enter the 2019 amounts for Under Armour, Inc.

* In Columns C and E, use a formula to convert the amounts in Columns B and D, respectively, to a percentage of that companys Total Revenue.

NIKE, INC.DATED FINANCIAL CONSOLIDATED STATEMENTS OF CASH FLOWS OR 2019 YEAR ENDED MAY 31, 2018 2017 4,029 $ 1,933 $ 4.240 705 747 706 647 (273) 218 215 325 15 233 27 10 (99) (117) 187 (270) (490) (203) (255) 35 (426) (231) (120) 1,525 5,903 1,515 4,955 (158) 3.846 Dolors in milions) Cash provided by operations: Net income Adiustments to reconcile net income to net cash provided by operations: Depreciation Deferred income taxes Stock-based compensation Amortization and other Net foreign currency adjustments Changes in certain working capital components and other assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in inventories (Increase) decrease in prepaid expenses and other current and non-current assets Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities Cash provided by operations Cash provided (used) by investing activities: Purchases of short-term investments 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 Cash provided (used) by investing activities Cash used by financing activities: Net proceeds from long-term debt issuance Long-term debt payments, including current portion Increase (decrease) in notes payable Payments on capital lease and other financing obligations Proceeds from exercise of stock options and other stock issuances Repurchase of common stock Dividends common and preferred Tax payments for not 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 Supplemental disclosure of cash flow information: Cash paid during the year for: Interest, net of capitalized interest (2.937) (4.783) (5,928) 1.7153,6133,623 2,072 2.496 2,423 (1,119) (1.028) (1,105) (25) 276 (34) (1,008) (264) 1,482 (6) (6) 13 (23) (325) (27) 700 (4.286) (1,332) 327 (17) 489 (3,223) (1.133) (5,293) (129) 217 4,249 4,466 $ (4.254) (1.243) (55) (4.835) 45 441 3,808 4,249 $ 2,148) (20) 670 3,138 3,808 153 $ 125 $ 529 703 Income taxes 160 347 266 300 320 Non-cash additions to property, plant and equipment Dividends declared and not paid accompanying Notes to the Consolidated Financial Statements are an integral part of this statement NIKE, INC. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY TOTAL COMMON STOCK CAPITAL IN ACCUMULATED EXCESS OTHER CLASS A CLASS B OF STATED COMPREHENSIVE RETAINED SHARES AMOUNT SHARES AMOUNT VALUE INCOME (LOS) EARNINGS 353 $ - 1,329 $ 3$ 5,038 $ 318 $ 6,899 $12.958 17 525 525 (24) (189) (3.060) (3,249) 24 (60) (1.159) (1.159) 121 215 (13) 108 215 4,240 4,240 (531) 6,907 $12,407 329 $ - (531) (213) $ 3 $ 1,314 $ 24 (70) 5,710 $ 600 (254) 600 (4,013) (4.267) (1,265) (1,265) (in millions, except per share data) Balance at May 31, 2016 Stock options exercised Conversion to Class B Common Stock Repurchase of Class B Common Stock Dividends on common stock (S0.70 per share) and preferred stock ($0.10 per Share) Issuance of shares to employees, net of shares withheld for employee taxes Stock-based compensation Net income Other comprehensive income (loss) Balance at May 31, 2017 Stock options exercised Repurchase of Class B Common Stock Dividends on common stock ($0.78 per share) and preferred stock ($0.10 per share) Issuance of shares to employees, net of shares withheld for employee taxes Stock-based compensation Net income Other comprehensive income (loss) Redassifications to retained earnings in accordance with ASU 2018-02 (Note 1) Balance at May 31, 2018 Stock options exercised Conversion to Class B Common Stock Repurchase of Class B Common Stock Dividends on common stock ($0.86 per share) and preferred stock ($0.10 per share) Issuance of shares to employees, net of shares withheld for employee taxes Stock-based compensation Net Income Other comprehensive income (loss) Adoption of ASU 2016-16 (Note 1) Adoption of ASC Topic 606 (Note 1) Balance at May 31, 2019 110 218 (28) 82 218 1,933 1,933 104 104 329 $ - 3 $ 6,384 $ 539 17 (92) $ (17) - 3,517 $ 9,812 1.272 $ 18 14 (54) 539 (14) (227) (4,056) (4.283) (1,360) (1,360) 142 323 (3) 139 325 4,029 4,029 323 (507) (507) 23 23 1.643 $ 9.040 315 $ 1,253 $ 3 $ 76161 2 31 $ The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement PART II NIKE, INC. CONSOLIDATED BALANCE SHEETS MAY 31, 2019 2018 4249 4.466 $ 197 4,272 5,622 1,968 349A 5.261 1,130 15,134 4454 285 16,525 4.744 283 154 2,011 23,717 $ 2,509 22,536 (Dollars in milions) ASSETS Current assets: Cash and equivalents Short-term investments Accounts receivable net Inventories Prepaid expenses and other current assets Total current assets Property, plant and equipment, net Identifiable intangible assets, nel Goodwill Deferred income taxes and other assets TOTAL ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt Notes payable Accounts payable Accrued liabilities Income taxes payable Total current liabilities Long-term debt Deferred income taxes and other liabilities Commitments and contingencies (Note 18) Redeemable preferred stock Shareholders' equity Common stock at stated value: 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 Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 6 S6 9 336 2612 2279 5,010 3,269 229 150 7,866 6,040 3,464 3.468 3.347 3.216 7,163 231 1.643 9.040 23.717 S 6,384 (92) 3.517 9,812 22,536 $ The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement PART 1 NIKE, INC. CONSOLIDATED STATEMENTS OF INCOME $ fin milions, 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 Earnings per common share: Basic Diluted Weighted average common shares outstanding: Basic Diluted YEAR ENDED MAY 31, 2019 2018 2017 39,117 $ 36,397 $ 34 35 21,643 20,441 19,038 17.474 15,956 15 312 3.753 3,577 3.341 8,949 7,934 7.222 12,702 11,511 10,563 495459 (78) 66 (196) 4,801 4,325 4,886 72 2,392 646 4,029 $ 1,933 $ 4,240 7 $ $ $ 2.55 $ 249 S 1.19 $ 1.17 $ 2.56 251 1,579.7 1,618.4 1,623.8 1.659.1 1,657.8 1.692.0 The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement ITEM 6. SELECTED FINANCIAL DATA All share and per share amounts are reflective of the two for one stock split that began trading at the split-adjusted price December 24, 2015 FINANCIAL HISTORY 2019 2018 2017 2016 2017 In milions, except per share data and financial ratios Year Ended May 31, $ 39,117 $ 36,397 $ 34,350 $ 32,376 $ 30.01 Revenues 15,956 15,312 14,971 14.067 Gross profit 44.7% 43.8% 44.6% 46.2% Gross margin 48.0% 1,933 4.240 3,760 3.273 Net income Earnings per common share: 2.55 Basic 1.19 2.56 2.21 1.90 2.49 1.17 2.51 2 .16 185 Diluted 1.579.7 1.623.8 1,657.8 1.697.9 1.723 Weighted average common shares outstanding Diluted weighted average common shares outstanding 1,618.4 1,659.1 1.692.0 1,742.5 1,768 Cash dividends declared per common share 0.86 0.78 0.70 0.62 0 5 Cash provided by operations 5,903 4,955 3,846 3,399 4906 At May 31, Cash and equivalents $ 4,466 $ 4,249 $ 3,808 $ 3,138 $ 3,862 Short-term investments 197 996 2,371 2.319 2,072 Inventories 5,622 5,261 5 ,056 4,838 4,337 Working capital 8,659 9 ,094 10,587 9,667 9.255 Total assets 23,717 22,536 23,259 21,379 21,590 Long-term debt 3.464 3.468 3,471 1,993 1,072 Capital lease obligations 60 75 27 15 5 Redeemable preferred stock 0.3 0.3 0.3 0.3 0.3 Shareholders' equity 9,040 9.812 12 407 12.258 12,707 Market capitalization 120,951 114.983 87,084 92.867 87,044 Financial Ratios: Return on equity 42.7% 17.4% 34.4% 30.1% 27.8% Return on assetshop 8.4% 19.0% 17.5% 16.3% Inventory turns 4.0 3.8 3.8 4.0 Current ratio at May 31 L 2.5 29 2.8 2.5 Price Earnings ratio at May 31) 31.0 61.4 21.1 256 27.5 Fica 2018 reflects the impact on the name of the Tax Cuts and Jobs Act. Refer t Consolidated Financial Statements for a n al information h e s h omparing F 2019 es the impact from the adoption of Accounting Standards Update (ASU) No 2014.00 Re Refer to Nole Sum of Sigricant Accounting Policies in the accompanying Notes to the Consored Financial Statement t ro Contracts Custom additional information 2019 reflects the impact from the apoion of ASUN Refer to Nole 2016-16 Income Taxes ( 740 Summary of S a nt Accounting Poices in the accompanying Notes to the Condled Financial Statement for A Omer Than Information 40 Under Armour, Inc. and Subsidiaries Consolidated Balance Sheets (In thousands, except share data) December 31, 2019 December 31, 2013 788.072 $ 557.403 708,714 652 546 892.258 1,019,496 313,165 364 183 2,702,209 2,593,628 792,148 826,868 591,931 550,178 546,494 36,345 41,793 82,379 112,420 88,341 123,819 4.843.531 $ 4.245.022 $ 618,194 $ 374,694 219,424 125,900 560,884 340,415 301,421 Assets Current assets Cash and cash equivalents Accounts receivable, net Inventories Prepaid expenses and other current assets Total current assets Property and equipment, net Operating lease right-of-use assets Goodwill Intangible assets, net Deferred income taxes Other long term assets Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable Accrued expenses Customer refund liabilities Operating lease liabilities Current maturities of long terin debt Other current liabilities Total current liabilities Long term debt, net of current maturities Operating lease liabilities, non-current Other long term liabilities Total liabilities Commitments and contingencies (see Note 8) Stockholders' equity Class A Common Stock. $0.0003 1/3 par value: 400,000,000 shares authorized as of December 31, 2019 and 2018: 188,289,680 shares issued and outstanding as of December 31, 2019, and 187,710,319 shares issued and outstanding as of December 31, 2018 Class B Convertible Common Stock. $0.0003 1/3 par value: 34,450,000 shares authorized, issued and outstanding as of December 31, 2019 and 2018 Class C Common Stock, 50.0003 1/3 par value: 400,000,000 shares authorized as of December 31, 2019 and 2018: 229,027 730 shares issued and outstanding as of December 31, 2019, and 226,421,963 shares issued and outstanding as of December 31, 2018 Additional paid-in capital Retained earnings Accumulated other comprehensive loss Total stockholders' equity Total liabilities and stockholders' equity 83.797 1,422,009 592,687 580,635 98,113 2.693 444 25,000 88.257 1,315,977 703,834 208 340 2.228.151 76 973.717 1,226,986 (50,765) 2.150,087 $ 4,843531 916.628 1,139,082 (38,987) 2,016,871 4.245.022 S Under Armour, Inc. and Subsidiaries Consolidated Statements of Operations (In thousands, except per share amounts) Net revenues Cost of goods sold Gross profit Selling, general and administrative expenses Restructuring and impairment charges Income (loss) from operations Interest expense, net Other expense, net Income (loss) before income taxes Income tax expense (benefit) Income (loss) from equity method investment Net income (loss) Year Ended December 31, 2019 2018 2017 $ 5,267,132 $ 5,193,185 $ 4,989,244 2,796,599 2.852,714 2.737,830 2,470,533 2,340,471 2,251,414 2,233,763 2,182,339 2,099,522 183,149 124,049 236,770 (25,017) 27,843 (21,240) (33,568) (34,538) (5,688) (9,203) (3,614) 209,842 (67,788) (10,309) 70,024 (20,552) 37,951 (47,679) 934 92,139 $ (46.302) $ (48,260) $ Basic net income (loss) per share of Class A, B and C common stock Diluted net income (loss) per share of Class A, B and C common stock 0.20 $ 0.20 $ (0.10) $ (0.10) $ (0.11) (0.11) $ Weighted average common shares outstanding Class A, B and C common stock Basic Diluted See accompanying notes. 450,964 454,274 445,815 445,815 440,729 440,729 Under Armour, Inc. and Subsidiaries Consolidated Statements of Comprehensive Income (Loss) (In thousands) Year Ended December 31, 2019 2018 2017 92,139 $ (46,302) $ (48,260) 10,754 (18,535) 23,357 (21,646) 22,800 (16,624) Net income (loss) $ Other comprehensive income (loss): Foreign currency translation adjustment Unrealized gain (loss) on cash flow hedge, net of tax benefit (expense) of $7,798, $(7.936), and $5,668 for the years ended December 31, 2019, 2018, and 2017, respectively. Loss on intra-entity foreign currency transactions Total other comprehensive income (loss) Comprehensive income (loss) $ See accompanying notes. (886) (5,041) 7.199 (11,778) (776) 13,932 80,361 $ (47.078) $ (34.328) Under Armour, Inc. and Subsidiaries Consolidated Statements of Stockholders' Equity (In thousands) Shares Am Amour 61 Share 450 Shares 220,174 Amount 73 Capital 23.484 Balance of December 31, 11 1250.414 (52,140 2000 oog 000 3664 Eero of stock options Shares with in consideration 165) - 1 - - 2.781) ance of A Common IIIII Stock.net of torte Impact of adoption of accounting 23032) (26.5 Stock-based compensation - 30.32 20.482 Comprehensive incomes) Balance as of December 31 LE!! 185257 2223755 74 72.26 $ 1.14.4415 33.211) $ 2018 642 Exence of stock options and 2.084 6747 1 Sharesweld in conden of employee ax ions 1 III - IIIIIII sance of A Common IIIIIIIIIIIII 1 - - 2,000 4,166) - 1 4,167 Impact of adoption of accounting standard updates Stock-based compensation 313 31 1 2 3 Comprehensive less Balance of December 31 of employee tax b ons 14.235) ance of Class A Sock, not offers sence of Clans C Common Stoch become 31225.63 101122303311 See accompanying notes MacBook Under Armour, Inc. and Subsidiaries Consolidated Statements of Cash Flows (In thousands) Year Ended December 31 2019 2018 2017 $ 92,139 $ 46,302) S (48.260 186,425 (2 073) 39.000 173.747 129.247) 71,378 Cash flows from operating activities Net Income (loss) Adjustments to reconcile net income (loss) to net cash provided by operating activities Depreciation and amortization Unrealized foreign currency exchange rate gain (loss) Impairment charges Amortization of bond premium Loss on disposal of property and equipment Stock-based compensation Excess tax benefit Class) from stock-based compensation arrangements Deferred income taxes Changes in reserves and allowances Changes in operating assets and liabilities: Accounts receivable 181,768 14.023 9.893 254 4.258 41.783 4.640 49,618 2,313 39,932 (75) 55.910 108.757 38.132 (26,096) (38,544) (234,998) 186.834 109,919 (107,855) (79,106) (222.3911 (52,106) (45,450) 149,519 24,334 19,966 59,458 (18.987) (80.710) 18.882 509.031 145,695 109,823 20,413 134.594 305,141 41.051 628.230 39,184) 237,460 (145,802) (281,339) Prepaid expenses and other assets Other non-current assets Accounts payable Accrued expenses and other liabilities Customer refund liability Income taxes payable and receivable Net cash provided by operating activities Cash flows from investing activities Purchases of property and equipment Sale of property and equipment Purchase of equity method investment Purchases of other assets Net cash (used in) provided by investing activities Cash flows from financing activities Proceeds from long term debt and revolving credit facility Payments on long term debt and revolving credit facility Employee taxes paid for shares withheld for income taxes Proceeds from exercise of stock options and other stock issuances Other financing fees Payments of debt financing costs Net cash used in financing activities Effect of exchange rate changes on cash, cash equivalents and restricted cash Net Increase in cash, cash equivalents and restricted cash Cash, cash equivalents and restrictedikah Beginning of period End of period (170,385) 11,285 (39,207) (4,597) (202.904) (1,311) (147.113) (1.848) (282,987) 25.000 - (162,817) (4.235) 7.472 505,000 (695.000) (2.743) 2.580 306 763.000 (665,000) (2.781) 11,540 (2.553) (137,070) 5,100 229,948 (189,868) 12 467 247 925 105.759 4,178 65.410 566,060 790.000 318,135 566060 252,725 318,135 $ $ 8,084) $ (14,611) $ 10.580 Non-cash investing and financing activities Change in accrual for property and equipment Other supplemental information Cash paid (received) for income taxes, net of refunds Cash paid for interest, net of capitalized interest 23.352 18,031 (16,738) 28,586 36,921 29.750