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PART I
ITEM 1B. Unresolved Staff Comments
None.
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 394-acre facility of 44 buildings which, together with
adjacent leased properties, functions as our world headquarters and is
occupied by approximately 9,200 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, NIKE owns a full product line
distribution center located in Memphis, Tennessee. In addition, NIKE has four
other distribution centers, three of which are leased, also located in Memphis.
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; Tomisato, Japan and
Incheon, Korea, 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 many offices
worldwide for sales and administrative purposes. We lease approximately
930 retail stores worldwide, which consist primarily of factory outlet stores.
See “United States Market” and “International Markets” in Part I 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. 2015 Annual Report and Notice of Annual Meeting 77
FORM 10-K