Nike 2009 Annual Report Download - page 74
Download and view the complete annual report
Please find page 74 of the 2009 Nike annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64 -
65 -
66 -
67 -
68 -
69 -
70 -
71 -
72 -
73 -
74 -
75 -
76 -
77 -
78 -
79 -
80 -
81 -
82 -
83 -
84 -
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
 |
 |
NIKE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Deferred tax assets and (liabilities) are comprised of the following:
May 31,
2009 2008
(In millions)
Deferred tax assets:
Allowance for doubtful accounts .................................. $ 17.9 $ 13.1
Inventories ................................................... 52.8 49.2
Sales return reserves ............................................ 52.8 49.2
Deferred compensation .......................................... 160.9 158.4
Stock-based compensation ....................................... 93.7 55.2
Reserves and accrued liabilities ................................... 66.7 57.0
Property, plant, and equipment .................................... — 7.9
Foreign loss carry-forwards ...................................... 31.9 40.1
Foreign tax credit carry-forwards .................................. 32.7 91.9
Hedges ...................................................... 1.1 42.9
Undistributed earnings of foreign subsidiaries ........................ 272.9 —
Other ........................................................ 46.2 40.5
Total deferred tax assets ..................................... 829.6 605.4
Valuation allowance ................................................ (26.0) (40.7)
Total deferred tax assets after valuation allowance ................ 803.6 564.7
Deferred tax liabilities:
Undistributed earnings of foreign subsidiaries ........................ — (113.2)
Property, plant and equipment .................................... (92.2) (67.4)
Intangibles ................................................... (100.7) (214.2)
Hedges ...................................................... (86.6) (1.3)
Other ........................................................ (4.2) (0.7)
Total deferred tax liability ................................... (283.7) (396.8)
Net deferred tax asset ............................................... $519.9 $ 167.9
At the end of fiscal 2009, the Company reported a net deferred tax asset of $272.9 million associated with
its investment in certain non-U.S. subsidiaries. Prior to fiscal 2009, the Company reported a net deferred tax
liability for book to tax differences in its investment in non-U.S. subsidiaries. The change to a deferred tax asset
position at the end of fiscal 2009 is due primarily to the impact of the impairment of Umbro’s goodwill,
intangible and other assets as described in Note 4 — Acquisition, Identifiable Intangible Assets, Goodwill and
Umbro Impairment.
A reconciliation from the U.S. statutory federal income tax rate to the effective income tax rate follows:
Year Ended May 31,
2009 2008 2007
Federal income tax rate ........................................... 35.0% 35.0% 35.0%
State taxes, net of federal benefit ................................... 1.2% 1.4% 1.6%
Foreign earnings ................................................ -14.9% -12.9% -4.1%
Other, net ...................................................... 2.7% 1.3% -0.3%
Effective income tax rate .......................................... 24.0% 24.8% 32.2%
72