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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-K
(Mark One)
ÍANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended May 31, 2006
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to .
Commission File No. 1-10635
NIKE, Inc.
(Exact name of Registrant as specified in its charter)
Oregon 93-0584541
(State or other jurisdiction
of incorporation)
(IRS Employer
Identification No.)
One Bowerman Drive (503) 671-6453
Beaverton, Oregon 97005-6453 (Registrant’s Telephone Number, Including Area Code)
(Address of principal executive offices) (Zip Code)
Securities registered pursuant to Section 12(b) of the Act:
Class B Common Stock New York Stock Exchange
(Title of Each Class) (Name of Each Exchange on Which Registered)
Securities registered pursuant to Section 12(g) of the Act:
None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
Act. Yes ÍNo
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the
Act. Yes No Í
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file
such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ÍNo
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is
not contained herein, and will not be contained to the best of Registrant’s knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filed, or a non-accelerated filer. See
definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act.
Large accelerated filer ÍAccelerated Filer Non-accelerated filer
Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-2 of the Act). Yes No Í
As of November 30, 2005, the aggregate market value of the Registrant’s Class A Common Stock held by nonaffiliates of the
Registrant was $488,038,576 and the aggregate market value of the Registrant’s Class B Common Stock held by nonaffiliates of
the Registrant was $16,212,090,022.
As of July 25, 2006, the number of shares of the Registrant’s Class A Common Stock outstanding was 63,906,694 and the
number of shares of the Registrant’s Class B Common Stock outstanding was 191,491,507.
DOCUMENTS INCORPORATED BY REFERENCE:
Parts of Registrant’s Proxy Statement for the annual meeting of shareholders to be held on September 18, 2006 are
incorporated by reference into Part III of this Report.

Table of contents

  • Page 1
    ...0584541 (IRS Employer Identification No.) One Bowerman Drive Beaverton, Oregon 97005-6453 (Address of principal executive offices) (Zip Code) (503) 671-6453 (Registrant's Telephone Number, Including Area Code) Securities registered pursuant to Section 12(b) of the Act: Class B Common Stock (Title...

  • Page 2
    ... by reference from the Proxy Statement for the NIKE, Inc. 2006 annual meeting of shareholders.) Directors and Executive Officers of the Registrant ...Executive Compensation ...Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters ...Certain Relationships and...

  • Page 3
    ... to NIKE Investor Relations, One Bowerman Drive, Beaverton, Oregon 97005-6453. Our principal business activity is the design, development and worldwide marketing of high quality footwear, apparel, equipment, and accessory products. NIKE is the largest seller of athletic footwear and athletic apparel...

  • Page 4
    ..., New York, sells athletic footwear and apparel in retail channels for value-conscious consumers, and markets and licenses athletic footwear and apparel under the Starter logo® and Shaq® brand names. Sales and Marketing Financial information about geographic and segment operations appears in Note...

  • Page 5
    ... centers. Cole Haan and NIKE Bauer Hockey products are distributed primarily from Greenland, New Hampshire, Converse products are shipped from Ontario and Fontana, California, and Hurley products are shipped from Irvine, California. International Markets We sell our products to retail accounts...

  • Page 6
    ... and advance orders, including at-once and closeout sales of NIKE footwear and apparel, wholesale sales of equipment, U.S. licensed team apparel, Cole Haan, Converse, Exeter Brands Group, Hurley, NIKE Bauer Hockey, NIKE Golf, and retail sales across all brands. Product Research and Development We...

  • Page 7
    ... and to deliver products to our customers outside of the United States, Europe, Middle East, Africa and Japan. Such a disruption could result in cancelled orders that would adversely affect sales and profitability. However, we believe that any such disruption would be short term in duration due...

  • Page 8
    ... products to continue to enter the United States at NTR tariff rates. Competition The athletic footwear, apparel and equipment industry is keenly competitive in the United States and on a worldwide basis. We compete internationally with an increasing number of athletic and leisure shoe companies...

  • Page 9
    NIKE is the largest seller of athletic footwear and athletic apparel in the world. Performance and reliability of shoes, apparel, and equipment, new product development, price, product identity through marketing and promotion, and customer support and service are important aspects of competition in ...

  • Page 10
    ...was a certified public accountant with Deloitte, Haskins, and Sells. Mary Kate Buckley, Vice President/General Manager, Americas and NIKE Bauer Hockey - Ms. Buckley, 46, has been employed by NIKE since 1998. She was appointed Director of New Business Development in 1998, Director of nike.com in 1998...

  • Page 11
    ... Disney Company where he was Senior Vice President for Global Apparel, Accessories and Footwear, and later promoted to Executive Vice President for Global Sales and Marketing for Consumer Products. Item 1A. Risk Factors Special Note Regarding Forward-Looking Statements and Analyst Reports Certain...

  • Page 12
    ...exchange rate fluctuations, order cancellations, and the fact that a significant portion of our revenue is not derived from futures orders; the ability of NIKE to sustain, manage or forecast its growth and inventories; the size, timing and mix of purchases of NIKE's products; new product development...

  • Page 13
    ... mix of product sales may vary considerably from time to time as a result of changes in seasonal and geographic demand for particular types of footwear, apparel and equipment. In addition, our customers may cancel orders, change delivery schedules or change the mix of products ordered with minimal...

  • Page 14
    ... from futures orders, including wholesale sales of equipment, U.S. licensed team apparel, Cole Haan, Converse, Exeter Brands Group, Hurley, NIKE Bauer Hockey, NIKE Golf, and retail sales across all brands. Our "futures" ordering program does not prevent excess inventories or inventory shortages...

  • Page 15
    ... renewal of the NTR with Vietnam, each of which are discussed elsewhere in this Report, could each have a material impact on our business. Currency exchange rate fluctuations could result in higher costs and decreased margins. A majority of our products are sold outside of the United States. As...

  • Page 16
    ... America's banks could disrupt our ability to acquire products from our suppliers and to deliver products to our customers outside of the United States, Europe, Middle East, Africa, and Japan. Such a disruption could result in cancelled orders that would adversely affect sales and profitability. 15

  • Page 17
    ... dependent on information technology systems across our supply chain, including for design, production, forecasting, ordering, manufacturing, transportation, sales, and distribution. Our ability to effectively manage and maintain our inventory and to ship products to customers on a timely basis...

  • Page 18
    ... of management's attention and resources that are needed to successfully run our business. Item 1B. Unresolved Staff Comments Not applicable. Item 2. Properties The following is a summary of principal properties owned or leased by NIKE. The NIKE World Campus, owned by NIKE and located in Beaverton...

  • Page 19
    ... 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities NIKE's Class B Common Stock is listed on the New York Stock Exchange and trades under the symbol NKE. At July 25, 2006, there were 19,348 holders of record of our Class B Common Stock and...

  • Page 20
    ...Total assets ...Long-term debt ...Redeemable Preferred Stock ...Shareholders' equity ...Year-end stock price ...Market capitalization ...Financial Ratios: Return on equity ...Return on assets ...Inventory turns ...Current ratio at May 31 ...Price/Earnings ratio at May 31 (Diluted before accounting...

  • Page 21
    ... average common shares outstanding ...Cash dividends declared per common share ...Price range of common stock High ...Low ... Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations Overview NIKE designs, develops and markets high quality footwear, apparel...

  • Page 22
    ...of our international regions posted higher revenues. Sales in our Other businesses drove the remainder of the consolidated revenue growth for fiscal 2006. Revenues for our Other businesses are comprised substantially of results from Cole Haan, Converse, Exeter Brands Group, Hurley, NIKE Bauer Hockey...

  • Page 23
    ...higher product costs, primarily the result of higher oil prices; additional costs incurred to meet strong footwear unit demand in the U.S.; higher sales incentives in EMEA and Asia Pacific; strategies to improve consumer value in EMEA and Japan; and a shift in the mix of footwear models sold towards...

  • Page 24
    ... currency exchange rates, the increase in operating overhead for fiscal 2006 versus fiscal 2005 was mainly attributable to higher personnel costs (both increased headcount and higher compensation) to support the growth of our business, including our Other businesses and new NIKE-owned retail stores...

  • Page 25
    ... headcount and higher compensation), investments in emerging markets (such as China, India and our Central Europe, Middle East and Africa unit) and our Other businesses, increased costs due to sales and leadership events and higher spending associated with new NIKE-owned retail stores. Other Expense...

  • Page 26
    ... revenue is not derived from futures and advance orders, including at-once and closeout sales of NIKE footwear and apparel, wholesale sales of equipment, U.S. licensed team apparel, Cole Haan, Converse, Exeter Brands Group, Hurley, NIKE Bauer Hockey, NIKE Golf and retail sales across all brands. 25

  • Page 27
    ... % Change Fiscal 2006 Fiscal 2005 Fiscal 2004 U.S. Region ...EMEA Region ...Asia Pacific Region ...Americas Region ...Other ...Corporate ...Total Pre-tax Income ...** $1,244.5 960.7 412.5 172.6 151... changes had no impact on previously reported results of operations or shareholders' equity. 26

  • Page 28
    ... accordance with Statement of Financial Accounting Standard No. 131, "Disclosures about Segments of an Enterprise and Related Information." As discussed in Note 17 - Operating Segments and Related Information in the accompanying Notes to Consolidated Financial Statements, certain corporate costs are...

  • Page 29
    ... increased unit sales of sport performance products, including soccer products driven by the World Cup, and increased average selling prices across most apparel categories. Excluding changes in currency exchange rates, sales increases in the emerging markets of our Central Europe, Middle East and...

  • Page 30
    ... on sports marketing endorsements and events. The increase in operating overhead spending was driven by increased spending on personnel costs to support the growth of our wholesale business and new NIKE-owned retail stores and higher costs related to sales and leadership events. Asia Pacific Region...

  • Page 31
    ... costs to support growth in China. Fiscal 2005 Compared to Fiscal 2004 In the Asia Pacific Region, 4 percentage points of reported revenue growth for fiscal 2005 were due to changes in currency exchange rates. Excluding changes in currency exchange rates, sales in each Asia Pacific product business...

  • Page 32
    ... both demand creation (due to increased sports marketing endorsement contracts, and increased advertising spending and retail marketing programs primarily related to the World Cup campaign) and operating overhead (driven by increased personnel costs as a result of continued expansion of the business...

  • Page 33
    ... accounts payable and accrued liabilities. The increase in inventories reflects higher in-transit inventories (due primarily to growth in reported futures and other orders, and earlier product ordering compared to last year) and higher inventories to support the expansion of NIKE-owned retail stores...

  • Page 34
    ... include service and marketing commitments made in the ordinary course of business. The amounts represent the minimum payments required by legally binding contracts and agreements that specify all significant terms, including open purchase orders for non-product purchases. The reported amounts...

  • Page 35
    ...accompanying Notes to Consolidated Financial Statements (Note 6 - Short-term Borrowings and Credit Lines) for further description and interest rates related to the short-term debt obligations listed below. Outstanding as of May 31, 2006 (In millions) Notes payable, due at mutually agreed-upon dates...

  • Page 36
    ... schedule for those employees eligible for accelerated vesting upon retirement, we would have recognized additional stock-based compensation expense in our pro forma disclosure of the effect of expensing stock options presented in the accompanying Notes to Consolidated Financial Statements (Note...

  • Page 37
    ... financial statements as of a given date. However, since our business cycle is relatively short, actual results related to these estimates are generally known within the six-month period following the financial statement date. Thus, these policies generally affect only the timing of reported amounts...

  • Page 38
    ... Contracts A significant portion of our demand creation expense relates to payments under endorsement contracts. In general, endorsement payments are expensed uniformly over the term of the contract. However, certain contract elements may be accounted for differently, based upon the facts and...

  • Page 39
    ... currency exchange transactions, as well as any resulting receivable or payable balance. When specific criteria required by SFAS No. 133, "Accounting for Derivative and Hedging Activities," as amended and interpreted ("FAS 133") have been met, changes in fair values of hedge contracts relating to...

  • Page 40
    ... objective is to reduce the variability of local entity cash flows as a result of exchange rate movements. We use forward exchange contracts and options to hedge certain anticipated but not yet firmly committed transactions as well as certain firm commitments and the related receivables and payables...

  • Page 41
    ...-term fixed rate debt, commercial paper, and bank loans and have entered into interest rate swaps. Market Risk Measurement We monitor foreign exchange risk, interest rate risk and related derivatives using a variety of techniques including a review of market value, sensitivity analysis, and Value...

  • Page 42
    ... presents principal cash flows and related weighted average interest rates by expected maturity dates. Expected Maturity Date Year Ended May 31, 2007 2008 2009 2010 2011 Thereafter Total Fair Value (In millions, except interest rates) Foreign Exchange Risk Euro Functional Currency Intercompany...

  • Page 43
    ... public accounting firm and reviews with the independent registered public accounting firm, management and the internal audit staff, the scope and the results of the annual examination, the effectiveness of the accounting control system and other matters relating to the financial affairs of NIKE...

  • Page 44
    ... Report on Internal Control Over Financial Reporting Management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act rule 13a-15(f). Under the supervision and with the participation of our Chief Executive Officer...

  • Page 45
    ...PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholders of NIKE, Inc.: We have completed integrated audits of NIKE, Inc.'s 2006 and 2005 consolidated financial statements and of its internal control over financial reporting as of May 31, 2006 and an audit of its 2004 consolidated financial...

  • Page 46
    ... reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or...

  • Page 47
    NIKE, INC. CONSOLIDATED STATEMENTS OF INCOME Year Ended May 31, 2006 2005 2004 (In millions, except per share data) Revenues ...Cost of sales ...Gross margin ...Selling and administrative expense ...Interest (income) expense, net (Notes 1, 6 and 7) ...Other expense, net (Notes 5 and 16) ...Income ...

  • Page 48
    ... Stock (Note 9) ...Shareholders' equity: Common stock at stated value (Note 10): Class A convertible - 63.9 and 71.9 shares outstanding ...Class B - 192.1 and 189.2 shares outstanding ...Capital in excess of stated value ...Unearned stock compensation ...Accumulated other comprehensive income (Note...

  • Page 49
    ...Reductions in long-term debt including current portion ...Decrease in notes payable ...Proceeds from exercise of stock options and other stock issuances ...Repurchase of stock ...Dividends - common and preferred ...Cash used by financing activities ...Effect of exchange rate changes ...Net (decrease...

  • Page 50
    ...May 31, 2004 ...Stock options exercised ...Conversion to Class B Common Stock ...Repurchase of Class B Common Stock ...Dividends on Common stock ($.95 per share) ...Issuance of shares to employees ...Amortization of unearned compensation ...Forfeiture of shares from employees ...Comprehensive income...

  • Page 51
    ...Promotion Advertising production costs are expensed the first time the advertisement is run. Media (TV and print) placement costs are expensed in the month the advertising appears. A significant amount of the Company's promotional expenses result from payments under endorsement contracts. Accounting...

  • Page 52
    ...of the applicable reporting unit to its carrying value. The Company estimates the fair value of its reporting units by using a combination of discounted cash flow analysis and comparisons with the market values of similar publicly traded companies. If the carrying value of the reporting unit exceeds...

  • Page 53
    ... with Accounting Principles Board ("APB") Opinion No. 25, "Accounting for Stock Issued to Employees" as permitted by SFAS No. 123 "Accounting for Stock-Based Compensation" ("FAS 123"). The Company's usual practice is to grant stock options with an exercise price equal to the market value at the date...

  • Page 54
    NIKE, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) If the Company had accounted for these stock options and ESPP purchase rights issued to employees in accordance with FAS 123, the Company's pro forma net income and pro forma earnings per share ("EPS") would have been reported as ...

  • Page 55
    NIKE, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) vesting upon retirement. Had the Company been accounting for such stock options using the accelerated vesting schedule for those employees eligible for accelerated vesting upon retirement, the Company would have recognized ...

  • Page 56
    NIKE, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) In June 2006, the FASB issued FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 clarifies the accounting for uncertainty in income taxes recognized in the Company's financial statements in ...

  • Page 57
    ... the following: May 31, 2006 2005 (In millions) Compensation and benefits, excluding taxes ...Endorser compensation ...Taxes other than income taxes ...Fair value of derivatives ...Dividends payable ...Advertising and marketing ...Converse arbitration(1) ...Other(2) ... $ 427.2 124.7 115.1 111.2 79...

  • Page 58
    ... for notes payable approximate fair value due to the short maturities. The Company purchases through Sojitz America certain athletic footwear, apparel and equipment it acquires from non-U.S. suppliers. These purchases are for the Company's operations outside of the U.S., Europe, Middle East, Africa...

  • Page 59
    NIKE, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The Company has interest rate swap agreements with the same notional amount and maturity dates as the $250.0 million corporate bond maturing August 15, 2006, whereby the Company receives fixed interest payments at the same rate as ...

  • Page 60
    ... for doubtful accounts ...Inventories ...Sales return reserves ...Deferred compensation ...Reserves and accrued liabilities ...Property, plant, and equipment ...Foreign loss carryforwards ...Foreign tax credit carryforwards ...Hedges ...Other ...Total deferred tax assets ...Valuation allowance...

  • Page 61
    ... to shareholders' equity. Note 9 - Redeemable Preferred Stock Sojitz America is the sole owner of the Company's authorized Redeemable Preferred Stock, $1 par value, which is redeemable at the option of Sojitz America or the Company at par value aggregating $0.3 million. A cumulative dividend of...

  • Page 62
    ... B Common Stock in connection with stock options and other awards granted under such plan, included is 16 million shares of Class B Common Stock approved by the Board of Directors and shareholders during the year ended May 31, 2006. The 1990 Plan authorizes the grant of incentive stock options, non...

  • Page 63
    ...Employee Stock Purchase Plan ("ESPP") under which 3.0 million shares of Class B Common Stock are provided for issuance to employees. The plan qualifies as a noncompensatory employee stock purchase plan under Section 423 of the Internal Revenue Code. In February 2003, the Company's Board of Directors...

  • Page 64
    NIKE, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Note 11 - Earnings Per Share The following represents a reconciliation from basic earnings per share to diluted earnings per share. Options to purchase 5.6 million and 0.2 million shares of common stock were outstanding at May 31, ...

  • Page 65
    .... These letters of credit were generally issued for the purchase of inventory. In connection with various contracts and agreements, the Company provides routine indemnifications relating to the enforceability of intellectual property rights, coverage for legal issues that arise and other items that...

  • Page 66
    ... the Company's financial position or results of operations. Note 15 - Acquisitions In September 2003, the Company acquired 100 percent of the equity shares of Converse. Converse designs, distributes, and markets high performance and casual athletic footwear and apparel. The acquisition was accounted...

  • Page 67
    ... where internal netting strategies cannot be effectively employed. Derivatives used by the Company to hedge foreign currency exchange risks are forward exchange contracts, options and cross-currency swaps. The cross-currency swaps are used to hedge foreign currency denominated payments related to...

  • Page 68
    ... plus a spread. Under the interest rate swap agreement, the subsidiary pays fixed interest payments at 0.8% and receives variable interest payments based on 3-month LIBOR plus a spread based on a notional amount of 8 billion Japanese yen. This interest rate swap is not accounted for as a fair value...

  • Page 69
    ...risk related to accounts receivable to be mitigated by the Company's credit policy, the significance of outstanding balances owed by each individual customer at any point in time and the geographic dispersion of these customers. Note 17 - Operating Segments and Related Information Operating Segments...

  • Page 70
    NIKE, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) income represent corporate costs that are not allocated to the operating segments for management reporting including corporate activity, certain currency exchange rate gains and losses on transactions, and intercompany eliminations ...

  • Page 71
    ... NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) 2006 Year Ended May 31, 2005 2004 (In millions) Accounts Receivable, net United States ...Europe, Middle East and Africa ...Asia Pacific ...Americas ...Other ...Corporate ...Inventories United States ...Europe, Middle East and Africa ...Asia...

  • Page 72
    ..., processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to...

  • Page 73
    ... of Certain Beneficial Owners and Management and Related Stockholder The information required by this Item is included under "Stock Holdings of Certain Owners and Management" and under "Equity Compensation Plans" in the definitive Proxy Statement for our 2006 Annual Meeting of Shareholders and is...

  • Page 74
    ... 2004 ...Notes to Consolidated Financial Statements ...44 46 47 48 49 50 F-1 2. FINANCIAL STATEMENT SCHEDULE: II - Valuation and Qualifying Accounts ... All other schedules are omitted because they are not applicable or the required information is shown in the financial statements or notes thereto...

  • Page 75
    ... directors or executive officers of the Company (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed January 26, 2006). Employment Offer Letter between NIKE, Inc. and Donald W. Blair dated November 1, 1999.* Covenant Not to Compete and Non-Disclosure Agreement...

  • Page 76
    ...on a consolidated basis. NIKE agrees, pursuant to Item 601(b)(4)(iii) of Regulation S-K, that it will furnish a copy of any such instrument to the SEC upon request. Upon written request to Investor Relations, NIKE, Inc., One Bowerman Drive, Beaverton, Oregon 970056453, NIKE will furnish shareholders...

  • Page 77
    SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts (In millions) Write-Offs Net of Recoveries Balance at End of Period Description For the year ended May 31, 2004 Allowance for doubtful accounts ...For the year ended...

  • Page 78
    ... 333-133360) of NIKE, Inc. of our report dated July 27, 2006 relating to the financial statements, financial statement schedule, management's assessment of the effectiveness of internal control over financial reporting and the effectiveness of internal control over financial reporting, which appears...

  • Page 79
    ...and on the dates indicated. Signature Title Date Principal Executive Officer and Director: /s/ MARK G. PARKER Mark G. Parker Director, Chief Executive Officer and President July 28, 2006 Principal Financial and Accounting Officer: /s/ DONALD W. BLAIR Donald W. Blair Chief Financial Officer July 28...

  • Page 80
    Signature Title Date /s/ DOUGLAS G. HOUSER Douglas G. Houser JEANNE P. JACKSON Jeanne P. Jackson /s/ ORIN C. SMITH Orin C. Smith Director July 28, 2006 /s/ Director July 28, 2006 Director July 28, 2006 /s/ JOHN R. THOMPSON, JR. John R. Thompson, Jr. Director July 28, 2006 S-2

  • Page 81
    ... charges Interest expense (A) ...Interest component of leases (B) ...Total fixed charges ...Earnings before income taxes and fixed charges (C) ...Ratio of earnings to total fixed charges ...(A) Interest expense includes interest both expensed and capitalized. $1,392.0 749.6 2,141.6 50.5 84.0 134...

  • Page 82
    ... Triax Insurance, Inc., and NIKE (Suzhou) Sports Company, Ltd. carry on the same line of business, namely the design, marketing distribution and sale of athletic and leisure footwear, apparel, accessories, and equipment. NIKE IHM, Inc., a Missouri corporation, manufactures plastics and Air-Sole shoe...

  • Page 83
    ... Vice President, Global Strategic Planning Beaverton, Oregon Heidi L. O'Neill Vice President, USA Apparel Beaverton, Oregon Roland H.M. Paanakker Vice President, Chief Information Officer Beaverton, Oregon Bernard F. Pliska Vice President, Corporate Controller Beaverton, Oregon Nigel A. Powell Vice...

  • Page 84
    ... to NIKE's Investor Relations Department at NIKE World Headquarters, One Bowerman Drive, Beaverton, Oregon 97005-6453. Financial information is also available via the internet at www.NikeBiz.com. Dividend Payments Quarterly dividends on NIKE common stock, when declared by the Board of Directors, are...