Nike 2015 Annual Report Download - page 22

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PART II
Results of Operations
Unless otherwise indicated, the following disclosures reflect the Company’s continuing operations.
(Dollars in millions, except per share data) Fiscal 2015 Fiscal 2014 % Change Fiscal 2013 % Change
Revenues $ 30,601 $ 27,799 10% $ 25,313 10%
Cost of sales 16,534 15,353 8% 14,279 8%
Gross profit 14,067 12,446 13% 11,034 13%
Gross margin % 46.0% 44.8% 43.6%
Demand creation expense 3,213 3,031 6% 2,745 10%
Operating overhead expense 6,679 5,735 16% 5,051 14%
Total selling and administrative expense 9,892 8,766 13% 7,796 12%
% of Revenues 32.3% 31.5% 30.8%
Interest expense (income), net 28 33 — (3) —
Other (income) expense, net (58) 103 — (15) —
Income before income taxes 4,205 3,544 19% 3,256 9%
Income tax expense 932 851 10% 805 6%
Effective tax rate 22.2% 24.0% 24.7%
Net income from continuing operations 3,273 2,693 22% 2,451 10%
Net income from discontinued operations(1) ———21—
Net income $ 3,273 $ 2,693 22% $ 2,472 9%
Diluted earnings per common share — continuing
operations $ 3.70 $ 2.97 25% $ 2.68 11%
Diluted earnings per common share —
discontinued operations(1) $ — $ — — $ 0.02 —
(1) During fiscal 2013, we divested of Umbro and Cole Haan, allowing us to focus our resources on driving growth in the NIKE, Jordan, Converse and Hurley brands. As of May 31, 2013, we
had substantially completed all transition services related to the sale of both businesses. The results of the divestitures are presented as discontinued operations. Please refer to Note 15 —
Discontinued Operations in the accompanying Notes to the Consolidated Financial Statements for more detail.
NIKE, INC. 2015 Annual Report and Notice of Annual Meeting 83
FORM 10-K