Nike 2006 Annual Report Download - page 64

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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, 2006 and
May 31, 2005, respectively, but were not included in the computation of diluted earnings per share because the
options’ exercise prices were greater than the average market price of the common shares and, therefore, the
effect would be antidilutive. There were no such antidilutive options outstanding at May 31, 2004.
Year Ended May 31,
2006 2005 2004
(In millions,
except per share data)
Determination of shares:
Average common shares outstanding ........................ 259.0 262.6 263.2
Assumed conversion of dilutive stock options and awards ....... 4.8 7.7 6.5
Diluted average common shares outstanding ...................... 263.8 270.3 269.7
Basic earnings per common share .............................. $ 5.37 $ 4.61 $ 3.59
Diluted earnings per common share ............................. $ 5.28 $ 4.48 $ 3.51
Note 12 — Benefit Plans
The Company has a profit sharing plan available to most U.S.-based employees. The terms of the plan call
for annual contributions by the Company as determined by the Board of Directors. A subsidiary of the Company
also has a profit sharing plan available to its U.S.-based employees. The terms of the plan call for annual
contributions as determined by the subsidiary’s executive management. Contributions of $33.2 million, $29.1
million, and $23.0 million were made to the plans and are included in selling and administrative expenses in the
consolidated financial statements for the years ended May 31, 2006, 2005 and 2004, respectively. The Company
has various 401(k) employee savings plans available to U.S.-based employees. The Company matches a portion
of employee contributions with common stock or cash. Company contributions to the savings plans were $22.5
million, $20.3 million, and $17.0 million for the years ended May 31, 2006, 2005 and 2004, respectively, and are
included in selling and administrative expenses.
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