Nike 2014 Annual Report Download - page 57

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PART II
NOTE 2 — Inventories
Inventory balances of $3,947 million and $3,484 million at May 31, 2014 and 2013, respectively, were substantially all finished goods.
NOTE 3 — Property, Plant and Equipment
Property, plant and equipment included the following:
As of May 31,
(In millions) 2014 2013
Land $ 270 $ 268
Buildings 1,261 1,174
Machinery, equipment and internal-use software 3,376 2,985
Leasehold improvements 1,066 945
Construction in process 247 128
Total property, plant and equipment, gross 6,220 5,500
Less accumulated depreciation 3,386 3,048
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET $ 2,834 $ 2,452
Capitalized interest was not material for the years ended May 31, 2014, 2013, and 2012. The Company had $74 million and $81 million in capital lease obligations
as of May 31, 2014 and May 31, 2013, respectively, included in machinery, equipment and internal-use software.
NOTE 4 — Identifiable Intangible Assets and Goodwill
The following table summarizes the Company’s Identifiable intangible asset balances as of May 31, 2014 and 2013:
As of May 31, 2014 As of May 31, 2013
(In millions)
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Acquired trademarks and other $ 39 $ (39) $ — $ 43 $ (36) $ 7
Indefinite-lived trademarks 282 282
IDENTIFIABLE INTANGIBLE ASSETS, NET $ 282 $ 289
Goodwill was $131 million at May 31, 2014 and May 31, 2013; $64 million is included in the Converse segment and the remaining amounts are included in Global
Brand Divisions for segment reporting purposes. There were no accumulated impairment balances for goodwill as of either period end.
NOTE 5 — Accrued Liabilities
Accrued liabilities included the following:
As of May 31,
(In millions) 2014 2013
Compensation and benefits, excluding taxes $ 782 $ 713
Endorsement compensation 328 264
Dividends payable 209 188
Taxes other than income taxes 204 192
Advertising and marketing 133 77
Import and logistics costs 127 111
Fair value of derivatives 85 34
Other(1) 623 457
TOTAL ACCRUED LIABILITIES $ 2,491 $ 2,036
(1) Other consists of various accrued expenses with no individual item accounting for more than 5% of the total Accrued liabilities balance at May 31, 2014 and 2013.
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