What do Kentucky Fried Chicken, Pizza Hut, and Taco Bell have in common? Each of these well-known brands is owned by YUM! Brands, Inc. Large corporations, such as YUM! Brands, usually consist of many smaller companies. While most of these companies operate a brand within a specific country or region, other companies operate transportation, insurance, and other unique activities of the corporation.

A company owned by another company is known as a subsidiary. YUM! Brands’ financial statements include financial information from each subsidiary. These financial statements are referred to as consolidated financial statements.

Nike’s financial statements include the financial information of more than 140 subsidiaries. Most of these subsidiaries include the name of one of Nike’s brands.

Instructions

1. Use the Description of Business section of Note 1 on page B-9 in Appendix B to identify Nike’s brands.

2. What do these brands have in common with Nike?

Description of Business

NIKE, Inc. is a worldwide leader in the design, development and worldwide marketing and selling of athletic footwear, apparel, equipment, accessories and services. NIKE, Inc. portfolio brands include the NIKE Brand, Jordan Brand, Hurley and Converse. The NIKE Brand is focused on performance athletic footwear, apparel, equipment, accessories and services across a wide range of sport categories, amplified with sport-inspired sportswear products carrying the Swoosh trademark as well as other NIKE Brand trademarks. The Jordan Brand is focused on athletic and casual footwear, apparel and accessories, using the Jumpman trademark. Sales of Jordan Brand products are reported as a separate category within the respective NIKE Brand geographic operating segments. The Hurley brand is focused on surf and action sports and youth lifestyle footwear, apparel and accessories, using the Hurley trademark. Sales of Hurley brand products are included within the NIKE Brand Action Sports category and within the NIKE Brand’s North America geographic operating segment, respectively. Converse designs, distributes, markets and sells casual sneakers, apparel and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron and Jack Purcell trademarks. In some markets outside the U.S., these trademarks are licensed to third parties who design, distribute, market and sell similar products. Operating results of the Converse brand are reported on a stand-alone basis.