Nike 2009 Annual Report Download - page 3

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PART I
Item 1. Business
General
NIKE, Inc. was incorporated in 1968 under the laws of the state of Oregon. As used in this report, the terms
“we”, “us”, “NIKE” and the “Company” refer to NIKE, Inc. and its predecessors, subsidiaries and affiliates,
unless the context indicates otherwise. Our Internet address is www.nike.com. On our NIKE Corporate web site,
located at www.nikebiz.com, we post the following filings as soon as reasonably practicable after they are
electronically filed with or furnished to the Securities and Exchange Commission: our annual report on
Form 10-K, our quarterly reports on Form 10-Q, our current reports on Form 8-K and any amendments to those
reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities and Exchange Act of 1934, as
amended. All such filings on our NIKE Corporate web site are available free of charge. Also available on the
NIKE Corporate web site are the charters of the committees of our board of directors, as well as our corporate
governance guidelines and code of ethics; copies of any of these documents will be provided in print to any
shareholder who submits a request in writing 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 in the world. We sell our products to retail accounts, through NIKE-owned retail including stores and
internet sales, and through a mix of independent distributors and licensees, in over 170 countries around the
world. Virtually all of our products are manufactured by independent contractors. Virtually all footwear and
apparel products are produced outside the United States, while equipment products are produced both in the
United States and abroad.
Products
NIKE’s athletic footwear products are designed primarily for specific athletic use, although a large
percentage of the products are worn for casual or leisure purposes. We place considerable emphasis on high
quality construction and innovation in products designed for men, women and children. Running, training,
basketball, soccer, sport-inspired casual shoes, and kids’ shoes are currently our top-selling footwear categories
and we expect them to continue to lead in product sales in the near future. We also market footwear designed for
aquatic activities, baseball, cheerleading, football, golf, lacrosse, outdoor activities, skateboarding, tennis,
volleyball, walking, wrestling, and other athletic and recreational uses.
We sell sports apparel and accessories covering most of the above categories, sports-inspired lifestyle
apparel, as well as athletic bags and accessory items. NIKE apparel and accessories are designed to complement
our athletic footwear products, feature the same trademarks and are sold through the same marketing and
distribution channels. We often market footwear, apparel and accessories in “collections” of similar design or for
specific purposes. We also market apparel with licensed college and professional team and league logos.
We sell a line of performance equipment under the NIKE brand name, including bags, socks, sport balls,
eyewear, timepieces, electronic devices, bats, gloves, protective equipment, golf clubs, and other equipment
designed for sports activities. We also sell small amounts of various plastic products to other manufacturers
through our wholly-owned subsidiary, NIKE IHM, Inc.
In addition to the products we sell directly to customers, we have entered into license agreements that permit
unaffiliated parties to manufacture and sell various apparel, equipment and accessory items, such as swimwear,
children’s apparel, training equipment, eyewear, electronic devices and golf accessories.
Our wholly-owned subsidiary, Cole Haan (“Cole Haan”), headquartered in Yarmouth, Maine, designs and
distributes dress and casual footwear, apparel and accessories for men and women under the brand names Cole
Haan®and Bragano®.
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