Nike 2011 Annual Report Download - page 33

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33NIKE,INC.-Form10-K
PARTII
ITEM8Financial Statements and Supplemental Data
(Inmillions, except interest rates)
Expected Maturity Date
Year Ending May31,
2012 2013 2014 2015 2016 Thereafter Total FairValue
Foreign Exchange Risk
Japanese Yen Functional Currency
Japanese Yen debt— Fixed rate
Principal payments $ 200 $ 8 $ 8 $ 8 $ 8 $ 37 $ 269 $ 275
Average interest rate
3.4 % 2.4 % 2.4 % 2.4 % 2.4 % 2.4 % 3.0 %
Interest Rate Risk
Japanese Yen Functional Currency
Long-term Japanese Yen debt— Fixed rate
Principal payments $ 200 $ 8 $ 8 $ 8 $ 8 $ 37 $ 269 $ 275
Average interest rate 3.4 % 2.4 % 2.4 % 2.4 % 2.4 % 2.4 % 2.0 %
U.S.Dollar Functional Currency
Long-term U.S.Dollar debt— Fixed rate
swapped to Floating rate
Principal payments $
— $ 40 $ — $ — $ 101 $ — $ 141 $ 153
Average interest rate 0.0 % 0.9 % 0.0 % 0.0 % 0.4 % 0.0 % 0.5 %
Long-term U.S.Dollar debt— Fixed rate
Principal payments $ — $ — $ 50 $ — $ — $ — $ 50 $ 54
Average interest rate 0.0 % 0.0 % 4.7 % 0.0 % 0.0 % 0.0 % 4.7 %
The fi xed interest rate Japanese Yen denominated debt instruments were issued by and are accounted for by one of our Japanese subsidiaries. Accordingly,
themonthly translation of these instruments, which varies due to changes in foreign exchange rates, is recognized in accumulated other comprehensive income
upon the consolidation of this subsidiary.
ITEM8 Financial Statements and Supplemental Data
Management of NIKE,Inc. is responsible for the information and representations
contained in this report. The fi nancial statements have been prepared in
conformity with the generally accepted accounting principles we considered
appropriate in the circumstances and include some amounts based on our
best estimates and judgments. Other fi nancial information in this report is
consistent with these fi nancial statements.
Our accounting systems include controls designed to reasonably assure
assets are safeguarded from unauthorized use or disposition and provide for
the preparation of fi nancial statements in conformity with generally accepted
accounting principles. These systems are supplemented by the selection
and training of qualifi ed fi nancial personnel and an organizational structure
providing for appropriate segregation of duties.
An Internal Audit department reviews the results of its work with the Audit
Committee of the Board of Directors, presently consisting of three outside
directors. The Audit Committee is responsible for the appointment of the
independent registered public accounting fi rm and reviews with the independent
registered public accounting fi rm, management and the internal audit staff,
the scope and the results of the annual examination, the effectiveness of the
accounting control system and other matters relating to the fi nancial affairs of
NIKE as they deem appropriate. The independent registered public accounting
fi rm and the internal auditors have full access to the Committee, with and
without the presence of management, to discuss any appropriate matters.