Nike 2009 Annual Report Download - page 26

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Results of Operations
Fiscal 2009 Fiscal 2008
FY09 vs.
FY08
% Change Fiscal 2007
FY08 vs.
FY07
% Change
(In millions, except per share data)
Revenues ..................... $19,176.1 $18,627.0 3% $16,325.9 14%
Cost of sales ................... 10,571.7 10,239.6 3% 9,165.4 12%
Gross margin .................. 8,604.4 8,387.4 3% 7,160.5 17%
Gross margin % ............ 44.9% 45.0% 43.9%
Selling and administrative
expense ..................... 6,149.6 5,953.7 3% 5,028.7 18%
% of Revenues ............. 32.1% 32.0% 30.8%
Restructuring charges ............ 195.0 — — — —
Goodwill impairment ............ 199.3 — — — —
Intangible and other asset
impairment .................. 202.0 — — — —
Income before income taxes ....... 1,956.5 2,502.9 -22% 2,199.9 14%
Net income .................... 1,486.7 1,883.4 -21% 1,491.5 26%
Diluted earnings per share ........ 3.03 3.74 -19% 2.93 28%
Reconciliation of Net Income and Diluted Earnings Per Share Excluding Non-Comparable Items(1)
Fiscal 2009 Fiscal 2008
FY09 vs.
FY08
Change
(In millions, except per share data)
Net income, as reported ................................. $1,486.7 $1,883.4 -21%
Add:
Restructuring charges, net of tax(2) ..................... 144.5 —
Umbro impairment of goodwill, intangible and other assets,
net of tax(3) ..................................... 240.7 —
Gain recognized on sale of NIKE Bauer Hockey, net of
tax ............................................ — (17.7)
Gain recognized on sale of Starter Business, net of tax ..... — (17.7)
One-time tax benefits(4) .............................. — (105.4)
Net income, excluding non-comparable items ................ $1,871.9 $1,742.6 7%
Diluted earnings per share, as reported ...................... $ 3.03 $ 3.74 -19%
Add:
Restructuring charges, net of tax(2) ..................... 0.29 —
Umbro impairment of goodwill, intangible and other assets,
net of tax(3) ..................................... 0.49 —
Gain recognized on sale of NIKE Bauer Hockey,
netoftax ....................................... — (0.04)
Gain recognized on sale of Starter Business, net of tax ..... — (0.04)
One-time tax benefits(4) .............................. — (0.21)
Diluted earnings per share, excluding non-comparable items .... $ 3.81 $ 3.45 10%
Diluted weighted average common shares outstanding ......... 490.7 504.1
(1) This schedule is intended to satisfy the quantitative reconciliation for non-GAAP financial measures in
accordance with Regulation G and Item 10(e) of Regulation S-K of the Securities and Exchange
Commission. In addition, this schedule is provided to enhance the visibility of the underlying business
trends excluding these non-comparable items for the years ended May 31, 2009 and 2008.
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