Nike 2016 Annual Report Download - page 41

Download and view the complete annual report

Please find page 41 of the 2016 Nike annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 85

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85

PART II
Changes in our assessment may result in the recognition of a tax benefit or an
additional charge to the tax provision in the period our assessment changes.
We recognize interest and penalties related to income tax matters in Income
tax expense.
Other Contingencies
In the ordinary course of business, we are involved in legal proceedings
regarding contractual and employment relationships, product liability claims,
trademark rights and a variety of other matters. We record contingent liabilities
resulting from claims against us, including related legal costs, when a loss is
assessed to be probable and the amount of the loss is reasonably estimable.
Assessing probability of loss and estimating probable losses requires analysis
of multiple factors, including in some cases judgments about the potential
actions of third-party claimants and courts. Recorded contingent liabilities are
based on the best information available and actual losses in any future period
are inherently uncertain. If future adjustments to estimated probable future
losses or actual losses exceed our recorded liability for such claims, we would
record additional charges during the period in which the actual loss or change
in estimate occurred. In addition to contingent liabilities recorded for probable
losses, we disclose contingent liabilities when there is a reasonable possibility
that the ultimate loss will materially exceed the recorded liability. While we
cannot predict the outcome of pending legal matters with certainty, we do not
believe any currently identified claim, proceeding or litigation, either individually
or in aggregate, will have a material impact on our results of operations,
financial position or cash flows.
94