Nike 2016 Annual Report Download - page 27

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PART II
Thebreakdownofrevenuesisasfollows:
(Dollars in millions) Fiscal 2016 Fiscal 2015(1) % Change
% Change
Excluding
Currency
Changes(2) Fiscal 2014(1) % Change
% Change
Excluding
Currency
Changes(2)
North America $ 14,764 $ 13,740 7% 8% $ 12,299 12% 12%
Western Europe 5,884 5,705 3% 14% 4,979 15% 21%
Central & Eastern Europe 1,431 1,421 1% 17% 1,387 2% 15%
Greater China 3,785 3,067 23% 27% 2,602 18% 19%
Japan 869 755 15% 22% 771 -2% 9%
Emerging Markets 3,701 3,898 -5% 13% 3,949 -1% 8%
Global Brand Divisions(3) 73 115 -37% -30% 125 -8% -2%
Total NIKE Brand Revenues 30,507 28,701 6% 13% 26,112 10% 14%
Converse 1,955 1,982 -1% 2% 1,684 18% 21%
Corporate(4) (86) (82) — — 3 — —
TOTAL NIKE, INC. REVENUES $ 32,376 $ 30,601 6% 12% $ 27,799 10% 14%
(1) Certain prior year amounts have been reclassified to conform to fiscal 2016 presentation. These changes had no impact on previously reported results of operations or shareholders’
equity.
(2) Results have been restated using actual exchange rates in use during the comparative prior year period to enhance the visibility of the underlying business trends by excluding the impact of
translation arising from foreign currency exchange rate fluctuations.
(3) Global Brand Divisions revenues are primarily attributable to NIKE Brand licensing businesses that are not part of a geographic operating segment.
(4) Corporate revenues primarily consist of foreign currency hedge gains and losses related to revenues generated by entities within the NIKE Brand geographic operating segments and
Converse, but managed through our central foreign exchange risk management program.
The primary financial measure used by the Company to evaluate performance
of individual operating segments is earnings before interest and taxes
(commonly referred to as “EBIT”), which represents Net income before
Interest expense (income), net and Income tax expense in the Consolidated
Statements of Income. As discussed in Note 17 — Operating Segments and
Related Information in the accompanying Notes to the Consolidated Financial
Statements, certain corporate costs are not included in EBIT of our operating
segments.
The breakdown of earnings before interest and taxes is as follows:
(Dollars in millions) Fiscal 2016 Fiscal 2015(1) % Change Fiscal 2014(1) % Change
North America $ 3,763 $ 3,645 3% $ 3,077 18%
Western Europe 1,434 1,275 12% 855 49%
Central & Eastern Europe 289 249 16% 279 -11%
Greater China 1,372 993 38% 816 22%
Japan 174 100 74% 131 -24%
Emerging Markets 892 818 9% 952 -14%
Global Brand Divisions (2,596) (2,267) -15% (1,993) -14%
Total NIKE Brand 5,328 4,813 11% 4,117 17%
Converse 487 517 -6% 496 4%
Corporate (1,173) (1,097) -7% (1,036) -6%
TOTAL CONSOLIDATED EARNINGS
BEFORE INTEREST AND TAXES 4,642 4,233 10% 3,577 18%
Interest expense (income), net 19 28 — 33 —
TOTAL CONSOLIDATED INCOME
BEFORE INCOME TAXES $ 4,623 $ 4,205 10% $ 3,544 19%
(1) Certain prior year amounts have been reclassified to conform to fiscal 2016 presentation. These changes had no impact on previously reported results of operations or shareholders’ equity.
80