Nike 2006 Annual Report Download - page 18

We may fail to meet analyst expectations, which could cause the price of our stock to decline.
Our common stock is traded publicly, and at any given time various securities analysts follow our financial
results and issue reports on us. These reports include information about our historical financial results as well as
the analysts’ estimates of our future performance. The analysts’ estimates are based upon their own opinions and
are often different from our estimates or expectations. If our operating results are below the estimates or
expectations of public market analysts and investors, our stock price could decline. In the past, securities class
action litigation has been brought against NIKE and other companies following a decline in the market price of
their securities. If our stock price is volatile, we may become involved in this type of litigation in the future. Any
litigation could result in substantial costs and a diversion 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, Oregon, USA, is a 176 acre facility of
16 buildings which functions as our world headquarters and is occupied by almost 6,000 employees engaged in
management, research, design, development, marketing, finance, and other administrative functions from nearly
all divisions of the Company. We also lease various office facilities in the surrounding metropolitan area. We
lease a similar, but smaller, administrative facility in Hilversum, The Netherlands, which serves as the
headquarters for the Europe, Middle East and Africa (“EMEA”) Region.
There are three significant distribution and customer service facilities for NIKE brand products in the
United States. Two of them are located in Memphis, Tennessee, one of which is leased, and one is located in
Wilsonville, Oregon, which is owned by us. Cole Haan and NIKE Bauer Hockey also operate a distribution
facility in Greenland, New Hampshire, which is owned by us. Smaller leased distribution facilities for other
brands and subsidiaries are located in various parts of the country. We also own or lease distribution and
customer service facilities in many parts of the world, the most significant of which are the distribution facilities
located in Tomisatomachi, Japan, and in Laakdal, Belgium, both of which we own.
We manufacture NIKE AIR-SOLE cushioning materials and components at NIKE IHM, Inc. manufacturing
facilities located in Beaverton, Oregon and St. Charles, Missouri, which are owned by us, and at NIKE (Suzhou)
Sports Company, Ltd., facilities in the People’s Republic of China which is owned by us.
Aside from the principal properties described above, we lease approximately 22 production offices outside
the United States, approximately 93 sales offices and showrooms worldwide, and approximately 76
administrative offices worldwide. We lease approximately 418 retail stores worldwide, which consist primarily
of factory outlet stores. See “United States Market” and “International Markets” on pages 3 and 4 of this
Report. Our leases expire at various dates through the year 2034.
Item 3. Legal Proceedings
There are no material pending legal proceedings, other than ordinary routine litigation incidental to our
business, to which we are a party or of which any of our property is the subject.
Item 4. Submission of Matters to a Vote of Security Holders
No matter was submitted during the fourth quarter of the 2006 fiscal year to a vote of security holders,
through the solicitation of proxies or otherwise.
17