Nike 2015 Annual Report Download - page 57

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PART II
NOTE 2 — Inventories
Inventory balances of $4,337 million and $3,947 million at May 31, 2015 and 2014, respectively, were substantially all finished goods.
NOTE 3 — Property, Plant and Equipment
Property, plant and equipment, net included the following:
As of May 31,
(In millions) 2015 2014
Land $ 273 $ 270
Buildings 1,250 1,261
Machinery, equipment and internal-use software 3,329 3,376
Leasehold improvements 1,150 1,066
Construction in process 350 247
Total property, plant and equipment, gross 6,352 6,220
Less accumulated depreciation 3,341 3,386
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET $ 3,011 $ 2,834
Capitalized interest was not material for the years ended May 31, 2015, 2014 and 2013. The Company had $5 million and $74 million in capital lease obligations
as of May 31, 2015 and May 31, 2014, respectively, included in machinery, equipment and internal-use software. During the fiscal year ended May 31, 2015, the
Company restructured the terms of certain capital leases, which now qualify as operating leases.
NOTE 4 — Identifiable Intangible Assets and Goodwill
Identifiable intangible assets, net consists of indefinite-lived trademarks, which
are not subject to amortization, and acquired trademarks and other intangible
assets, which are subject to amortization. At May 31, 2015 and 2014,
indefinite-lived trademarks were $281 million and $282 million, respectively.
Acquired trademarks and other intangible assets at May 31, 2015 and 2014
were $17 million and $39 million, respectively, and were fully amortized at the
end of both periods. Goodwill was $131 million at May 31, 2015 and 2014 of
which $65 million and $64 million were included in the Converse segment in
the respective periods. The remaining amounts were 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) 2015 2014
Compensation and benefits, excluding taxes $ 997 $ 782
Collateral received from counterparties to hedging instruments 968 —
Endorsement compensation 388 328
Dividends payable 240 209
Import and logistics costs 207 127
Taxes other than income taxes 174 204
Fair value of derivatives 162 85
Advertising and marketing 117 133
Other(1) 698 623
TOTAL ACCRUED LIABILITIES $ 3,951 $ 2,491
(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, 2015 and 2014.
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