Nike 2010 Annual Report Download - page 4

Table of Contents 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 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 certain apparel, electronic devices and other equipment designed for sports activities.
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 Cole Haan® trademark.
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