Nike 2009 Annual Report Download - page 80

NIKE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 13 — Benefit Plans
The Company has a profit sharing plan available to most U.S.-based employees. The terms of the plan call
for annual contributions by the Company as determined by the Board of Directors. A subsidiary of the Company
also has a profit sharing plan available to its U.S.-based employees. The terms of the plan call for annual
contributions as determined by the subsidiary’s executive management. Contributions of $27.6 million, $37.3
million, and $31.8 million were made to the plans and are included in selling and administrative expense for the
years ended May 31, 2009, 2008 and 2007, respectively. The Company has various 401(k) employee savings
plans available to U.S.-based employees. The Company matches a portion of employee contributions with
common stock or cash. Company contributions to the savings plans were $37.6 million, $33.9 million, and $24.9
million for the years ended May 31, 2009, 2008 and 2007, respectively, and are included in selling and
administrative expense.
The Company has pension plans in various countries worldwide. The pension plans are only available to
local employees and are generally government mandated. The liability related to the unfunded pension liabilities
of the plans was $82.8 million and $90.6 million at May 31, 2009 and 2008, respectively. Upon adoption of
SFAS No. 158, “Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans”
(“FAS 158”) on May 31, 2007, the Company recorded a liability of $17.6 million related to the unfunded pension
liabilities of the plans.
Note 14 — Accumulated Other Comprehensive Income
The components of accumulated other comprehensive income, net of tax, are as follows:
May 31,
2009 2008
(In millions)
Cumulative translation adjustment and other ............................. $ 64.6 $ 399.9
Net deferred gain (loss) on net investment hedge derivatives ................. 62.5 (43.5)
Net deferred gain (loss) on cash flow hedge derivatives ..................... 240.4 (105.0)
$367.5 $ 251.4
Note 15 — Commitments and Contingencies
The Company leases space for certain of its offices, warehouses and retail stores under leases expiring from
one to twenty-five years after May 31, 2009. Rent expense was $397.0 million, $344.2 million and $285.2
million for the years ended May 31, 2009, 2008 and 2007, respectively. Amounts of minimum future annual
rental commitments under non-cancelable operating leases in each of the five years ending May 31, 2010 through
2014 are $330.2 million, $281.3 million, $233.6 million, $195.6 million, $168.6 million, respectively, and $588.5
million in later years.
As of May 31, 2009 and 2008, the Company had letters of credit outstanding totaling $154.8 million and
$193.4 million, respectively. These letters of credit were generally issued for the purchase of inventory.
In connection with various contracts and agreements, the Company provides routine indemnifications
relating to the enforceability of intellectual property rights, coverage for legal issues that arise and other items
that fall under the scope of FASB Interpretation No. 45, “Guarantor’s Accounting and Disclosure Requirements
for Guarantees, Including Indirect Guarantees of Indebtedness of Others.” Currently, the Company has several
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