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PART II
NOTE 2 — Inventories
Inventory balances of $4,838 million and $4,337 million at May 31, 2016 and 2015, 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) 2016 2015
Land $ 286 $ 273
Buildings 1,467 1,250
Machinery, equipment and internal-use software 3,510 3,329
Leasehold improvements 1,338 1,150
Construction in process 437 350
Total property, plant and equipment, gross 7,038 6,352
Less accumulated depreciation 3,518 3,341
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET $ 3,520 $ 3,011
Capitalized interest was not material for the years ended May 31, 2016, 2015 and 2014.
NOTE 4 — Identifiable Intangible Assets and Goodwill
Identifiable intangible assets, net consist of indefinite-lived trademarks, which are not subject to amortization, and acquired trademarks and other intangible
assets, which are subject to amortization. Indefinite-lived trademarks were $281 million at May 31, 2016 and 2015. Acquired trademarks and other intangible
assets at May 31, 2016 and 2015 were $16 million and $17 million, respectively, and were fully amortized at the end of both periods. Goodwill was $131 million at
May 31, 2016 and 2015 of which $65 million was included in the Converse segment for 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) 2016 2015
Compensation and benefits, excluding taxes $ 943 $ 997
Endorsement compensation 393 388
Dividends payable 271 240
Import and logistics costs 198 207
Fair value of derivatives 162 162
Taxes other than income taxes payable 159 172
Advertising and marketing 119 117
Collateral received from counterparties to hedging instruments 105 968
Other(1) 687 698
TOTAL ACCRUED LIABILITIES $ 3,037 $ 3,949
(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, 2016 and 2015.
NIKE, INC. 2016 Annual Report and Notice of Annual Meeting 109
FORM 10-K