The SEC Form 10-K of NIKE is reproduced in Appendix C. Required Review the NIKE SEC Form
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Review the NIKE SEC Form 10-K, and answer the questions below.
(a) Compute NIKE’s long-term debt (include deferred income taxes and other long-term liabilities) to total asset ration for 2008 and 2009. Discuss the change.
(b) What interest rates are stated in the various long-term oblations of NIKE?
(c) What additional risk applies to the long-term debt of the subsidiary NIKE logistics YK?
(d) Review the financial section of the statements of cash flows and comments on the change in the company’s reliance on long-term debt over the last three years.
(e) Comment on the comparison between the market value of NIKE’s long-term debt and its carrying value on NIKE’s balance sheet.
(f) How does NIKE reduce the risk of interest rate fluctuations?
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