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PART II
expense items that are not allocated to the operating segments for
management reporting.
As part of the Company’s centrally managed foreign exchange risk
management program, standard foreign currency rates are assigned twice
per year to each NIKE Brand entity in the Company’s geographic operating
segments and to Converse. These rates are set approximately nine months in
advance of the future selling season based on average market spot rates in
the calendar month preceding the date they are established. Inventories and
Cost of sales for geographic operating segments and Converse reflect use of
these standard rates to record non-functional currency product purchases in
the entity’s functional currency. Differences between assigned standard
foreign currency rates and actual market rates are included in Corporate,
together with foreign currency hedge gains and losses generated from the
Company’s centrally managed foreign exchange risk management program
and other conversion gains and losses.
Accounts receivable, net,Inventories and Property, plant and equipment, net
for operating segments are regularly reviewed by management and are
therefore provided below. Additions to long-lived assets as presented in the
following table represent capital expenditures.
Certain prior year amounts have been reclassified to conform to fiscal 2015
presentation.
NIKE, INC. 2015 Annual Report and Notice of Annual Meeting 131
FORM 10-K