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PART I
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 near Beaverton,
Oregon, USA, is a 270-acre facility of 38 buildings which, together with
adjacent leased properties, functions as our world headquarters and is
occupied by more than 8,500 employees engaged in management, research,
design, development, marketing, finance, and other administrative functions
serving 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 & Eastern Europe geographies, and manages
certain brand management functions for our non-U.S. operations. We also
lease an office complex in Shanghai, China, our headquarters for Greater
China, occupied by employees focused on implementing our wholesale, DTC
and merchandising strategies in the region, among other functions. In the
United States, there are five significant distribution centers in Memphis,
Tennessee; two are owned and three are leased. NIKE Brand apparel and
equipment are also shipped from our Foothill Ranch, California distribution
center, which we lease. Smaller leased distribution facilities for non-NIKE
Brand businesses are located in various parts of the United States. We also
own or lease distribution and customer service facilities outside the United
States. The most significant are the distribution facilities located in Laakdal,
Belgium; Taicang, China; and Tomisato, Japan; all of which we own.
NIKE IHM, Inc. manufactures Air-Sole cushioning components at NIKE-
owned facilities located near Beaverton, Oregon and in St. Charles, Missouri.
We also manufacture and sell small amounts of various other plastic products
to other manufacturers through NIKE IHM, Inc.
Aside from the principal properties described above, we lease approximately
111 sales offices and approximately 110 administrative offices worldwide. We
lease more than 850 retail stores worldwide, which consist primarily of factory
outlet stores. See “United States Market” and “International Markets” in Part 1
of this Report. Our leases expire at various dates through the year 2033.
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. Mine Safety Disclosures
Not applicable.
NIKE, INC. 2014 Annual Report and Notice of Annual Meeting 59
FORM 10-K