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NIKE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Reporting”, to require disclosures about fair value of financial instruments in interim and annual reporting
periods. The provisions of FSP FAS 107-1 and APB 28-1 are effective for the quarter ending August 31, 2009.
The Company does not expect the adoption will have an impact on its consolidated financial position or results of
operations.
In December 2007, the FASB issued SFAS No. 141 (revised 2007), “Business Combinations” (“FAS
141(R)”) and SFAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements” (“FAS 160”).
These standards aim to improve, simplify, and converge international standards of accounting for business
combinations and the reporting of noncontrolling interests in consolidated financial statements. FAS 141(R) is
effective for business combinations for which the acquisition date is on or after June 1, 2009. Generally, the
effects of FAS 141(R) will depend on future acquisitions. FAS 160 is effective for the Company beginning
June 1, 2009. The Company does not expect the adoption of FAS 160 will have a material impact on its
consolidated financial position or results of operations.
In April 2008, the FASB issued Staff Position No. FAS 142-3, “Determination of the Useful Life of
Intangible Assets” (“FSP FAS 142-3”). FSP FAS 142-3 amends the factors that should be considered in
developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset
under FAS 142. The intent of the position is to improve the consistency between the useful life of a recognized
intangible asset under FAS 142 and the period of expected cash flows used to measure the fair value of the asset
under FAS 141(R), and other U.S. generally accepted accounting principles. The provisions of FSP FAS 142-3
are effective for the fiscal year beginning June 1, 2009. The Company does not expect the adoption of FSP FAS
142-3 will have a material impact on its consolidated financial position or results of operations.
Note 2 — Inventories
Inventory balances of $2,357.0 million and $2,438.4 million at May 31, 2009 and 2008, respectively, were
substantially all finished goods.
Note 3 — Property, Plant and Equipment
Property, plant and equipment includes the following:
As of May 31,
2009 2008
(In millions)
Land ........................................................... $ 221.6 $ 209.4
Buildings ....................................................... 974.0 934.6
Machinery and equipment .......................................... 2,094.3 2,005.0
Leasehold improvements ........................................... 802.0 757.3
Construction in process ............................................ 163.8 196.7
4,255.7 4,103.0
Less accumulated depreciation ...................................... 2,298.0 2,211.9
$1,957.7 $1,891.1
Capitalized interest was not material for the years ended May 31, 2009, 2008 and 2007.
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