Nike 2010 Annual Report Download - page 21

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Table of Contents
Item 1B. Unresolved Staff Comments
Not applicable.
Item 2. Properties
The following is a summary of principal properties owned or leased by NIKE.
The NIKE World Campus, owned by NIKE and located in Beaverton, Oregon, USA, is a 176 acre facility of 18 buildings which functions as our
world headquarters and is occupied by almost 5,800 employees engaged in management, research, design, development, marketing, finance, and other
administrative functions from nearly all of our divisions. We also lease various office facilities in the surrounding metropolitan area. We lease a similar, but
smaller, administrative facility in Hilversum, the Netherlands, which serves as the headquarters for the Western Europe and Central and Eastern Europe
geographies.
There are three significant distribution and customer service facilities for NIKE Brand footwear products in the United States. All three of them are
located in Memphis, Tennessee, one of which is leased. In the United States, NIKE Brand apparel and equipment are shipped from our Memphis, Tennessee
and Foothill Ranch, California distribution centers, which we lease. Cole Haan also operates a distribution facility in Greenland, New Hampshire, which we
lease. Smaller leased distribution facilities for other brands and non−NIKE Brand businesses are located in various parts of the United States. We also own
or lease distribution and customer service facilities in many parts of the world, the most significant of which are the distribution facilities located in
Tomisatomachi, Japan, and in Laakdal, Belgium, both of which we own.
We manufacture Air−Sole cushioning materials and components at NIKE IHM, Inc. manufacturing facilities located in Beaverton, Oregon and St.
Charles, Missouri, which we own. We also manufacture and sell small amounts of various plastic products to other manufacturers through NIKE IHM, Inc.
Aside from the principal properties described above, we lease three production offices outside the United States, over 100 sales offices and
showrooms worldwide, and approximately 65 administrative offices worldwide. We lease more than 600 retail stores worldwide, which consist primarily of
factory outlet stores. See “United States Market” and “International Markets” starting on page 2 of this Report. Our leases expire at various dates through
the year 2035.
Item 3. Legal Proceedings
There are no material pending legal proceedings, other than ordinary routine litigation incidental to our business, to which we are a party or of which
any of our property is the subject.
Item 4. Reserved
18