Nike 2006 Annual Report Download - page 72

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NIKE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
respectively. The Company’s largest concentrations of long-lived assets are in the U.S. and Japan. Long-lived
assets attributable to operations in the U.S., which are comprised of net property, plant & equipment were $998.2
million, $956.6 million, and $957.0 million at May 31, 2006, 2005, and 2004, respectively. Long-lived assets
attributable to operations in Japan were $296.3 million, $321.0 million, and $328.0 million at May 31, 2006,
2005, and 2004, respectively.
Major Customers. During the year ended May 31, 2006 and May 31, 2005, revenues derived from Foot
Locker, Inc. represented 10 percent and 11 percent of the Company’s consolidated revenues, respectively. Sales
to this customer are included in all segments of the Company. During the year ended May 31, 2004 the Company
did not have a significant customer that accounted for more than 10 percent of consolidated revenues.
Item 9. Changes In and Disagreements with Accountants on Accounting and Financial Disclosure
There has been no change of accountants nor any disagreements with accountants on any matter of
accounting principles or practices or financial statement disclosure required to be reported under this Item.
Item 9A. Controls and Procedures
We maintain disclosure controls and procedures that are designed to ensure that information required to be
disclosed in our Exchange Act reports is recorded, 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 allow for timely decisions regarding required disclosure. In designing and evaluating the
disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well
designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and
management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and
procedures.
We carry out a variety of on-going procedures, under the supervision and with the participation of our
management, including our Chief Executive Officer and Chief Financial Officer, to evaluate the effectiveness of
the design and operation of our disclosure controls and procedures. Based on the foregoing, our Chief Executive
Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective at the
reasonable assurance level as of May 31, 2006.
“Management’s Report on Internal Control Over Financial Reporting” and the related attestation report of
PricewaterhouseCoopers LLP are included in Item 8 on pages 43-45 of this Report.
There has been no change in our internal control over financial reporting during our most recent fiscal
quarter that has materially affected, or is reasonable likely to materially affect, our internal control over financial
reporting.
Item 9B. Other Information
No disclosure is required under this Item.
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