These vendors either provide a quoted market price in an active market or use observable inputs without applying significant adjustments in their pricing. The amounts listed for product purchase obligations represent agreements (including open purchase orders) to purchase products in the ordinary course of business that are enforceable and legally binding and that specify all significant terms. Action Plan . Our objective in managing this interest rate exposure is to limit the impact of interest rate changes on earnings and cash flows and to reduce overall borrowing costs. For the years ended May 31, 2014 and 2013 , the Company did not consider its securities to be other-than-temporarily impaired and accordingly, did not recognize any impairment losses. An internal Corporate Audit department reviews the results of its work with the Audit Committee of the Board of Directors, presently consisting of four outside directors. In fiscal 2014, most of this apparel production occurred in China, Vietnam, Thailand, Indonesia, Sri Lanka, Pakistan, and Malaysia. Includes both current and non-current portions of the allowance for doubtful accounts. Our current agreements with Sojitz America expire on May 31, 2015. Constant currency apparel revenues increased driven by growth in every key category, most notably Football (Soccer) and Running. Expected volatility is estimated based on implied volatility in market traded options on our common stock with a term greater than one year, along with other factors. Our audits also included performing such other procedures as we considered necessary in the circumstances. In fiscal 2014, non-U.S. NIKE Brand and Converse sales accounted for 54% of total revenues, compared to 55% in fiscal 2013 and 58% in fiscal 2012. The cash payments due for long-term debt include estimated interest payments. The Black-Scholes option pricing model requires the input of highly subjective assumptions including volatility. The results of the divestiture are presented as discontinued operations. The reported amounts exclude product purchase liabilities included in Accounts payable on the Consolidated Balance Sheet as of May 31, 2014 . Annual Reports. Maintaining, promoting, and growing our brands will depend on our design and marketing efforts, including advertising and consumer campaigns, product innovation, and product quality. At May 31, 2014 , the indefinitely reinvested earnings in foreign subsidiaries upon which United States income taxes have not been provided was approximately $6.6 billion , which includes a reduction of permanently reinvested earnings for the year ended May 31, 2014 . The following are selected line items from the Company's Consolidated Financial Statements illustrating the effect of these corrections and the correction of other immaterial errors: NIKE, Inc. Consolidated Statements of Income, NIKE, Inc. Consolidated Statements of Comprehensive Income, Prepaid expenses and other current assets, NIKE, Inc. Consolidated Statements of Cash Flows, NIKE, Inc. Consolidated Statements of Shareholders' Equity. As described below, the implementation of the NIKE Trading Company ("NTC") and our foreign currency adjustment program enhanced our ability to manage our foreign exchange risk by increasing the natural offsets and currency correlation benefits that exist within our portfolio of foreign exchange exposures. The transaction resulted in a gain on sale of $231 million , net of $137 million in Income tax expense; this gain is included in the Net income (loss) from discontinued operations line item on the Consolidated Statements of Income. The liability for payment of interest and penalties increased $55 million , $4 million , and $17 million during the years ended May 31, 2014 , 2013 , and 2012 , respectively. The results of audits or related disputes could have an adverse effect on our financial statements for the period or periods for which the applicable final determinations are made. It should only be considered an indication and not a recommendation. This pricing methodology applies to our Level 1 investments, including U.S. Treasury securities. access. The Company recognized $46 million , $50 million , and $51 million of Total selling and administrative expense related to cash awards under the LTIP during the years ended May 31, 2014 , 2013 , and 2012 , respectively. Certain prior year amounts have been reclassified to conform to fiscal 2014 presentation. As the fiscal year progresses, we continually refine our estimate based upon actual events and earnings by jurisdiction during the year. Other comprehensive income (loss), net of tax: Change in net foreign currency translation adjustment (1), Change in net gains (losses) on cash flow hedges (2), Change in net gains (losses) on net investment hedges  (3), Change in net gains (losses) on other (4), Change in release of cumulative translation loss related to Umbro (5), Total other comprehensive income (loss), net of tax. Failure to maintain our reputation and brand image could negatively impact our business. Prior to joining NIKE, he held a number of financial management positions with PepsiCo, Inc., including Vice President, Finance of Pepsi-Cola Asia, Vice President, Planning of PepsiCo's Pizza Hut Division, and Senior Vice President, Finance of The Pepsi Bottling Group, Inc. In addition, we cannot be certain that our unaffiliated manufacturers will be able to fill our orders in a timely manner. if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. If on June 30, 2014 all of his Class A Common Stock were converted into Class B Common Stock, Mr. Knight would have owned more than 16.2% of our Class B Common Stock. Unit sales in fiscal 2014 increased 11% and average selling price per pair increased 9%. In fiscal 2014 , we purchased 36.6 million shares of NIKE's Class B Common Stock for $2,628 million , an average price of $ 71.80 . Assets of discontinued operations were $0 million, $0 million, $615 million, $560 million, and $530 million for the years ended, Liabilities of discontinued operations were $0 million, $18 million, $170 million, $184 million, and $182 million for the years ended, Amounts presented have been revised from what was previously filed to correctly expense internally developed patent and trademark costs as incurred. Retail store revenues are recorded at the time of sale. Mark G. Parker, President and Chief Executive Officer - Mr. Parker, 58, was appointed President and Chief Executive Officer in January 2006. Future volatility in the capital markets, however, may increase costs associated with issuing commercial paper or other debt instruments or affect our ability to access those markets. The liability related to the unfunded pension liabilities of the plans was $100 million and $104 million at May 31, 2014 and May 31, 2013 , respectively, which was primarily classified as long-term in Deferred income taxes and other liabilities. 2015 Annual Report. 2012. Cost of sales consists primarily of inventory costs, as well as warehousing costs (including the cost of warehouse labor), third-party royalties, certain foreign currency hedge gains and losses, and research, design and development costs. Total NIKE Consolidated Earnings Before Interest and Taxes, TOTAL NIKE CONSOLIDATED EARNINGS BEFORE TAXES. In December 2011, the FASB issued guidance enhancing disclosure requirements surrounding the nature of an entity's right to offset and related arrangements associated with its financial instruments and derivative instruments. Our responsibility is to express opinions on these financial statements, on the financial statement schedule, and on the Company's internal control over financial reporting based on our integrated audits. Total liabilities North America footwear revenues growth was driven by higher demand in all key categories, most notably Basketball, Running, and Sportswear. The fair value of the Company's Long-term debt, including the current portion, was approximately $1,154 million at May 31, 2014 and $1,219 million at May 31, 2013 . The weighted average assumptions used to estimate these fair values are as follows: Weighted average expected life (in years). *, Form of Restricted Stock Agreement under the 1990 Stock Incentive Plan for awards after May 31, 2010 (incorporated by reference to Exhibit 10.16 to the Company's Annual Report on Form 10-K for the fiscal year ended May 31, 2013). Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of May 31, 2014 , based on criteria established in Internal Control - Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). December 18, 2014 NIKE, Inc. Reports Fiscal 2015 Second Quarter Results December 4, 2014 NIKE, Inc. If events prevented us from acquiring products from our suppliers in a particular country, our operations could be temporarily disrupted and we could experience an adverse financial impact. Dollars are included in the foreign currency translation adjustment, a component of Accumulated other comprehensive income in Total shareholders' equity. In many countries and regions, including Canada, Asia, some Latin American countries, and Europe, we have a futures ordering program for retailers similar to the United States futures ordering program described above. While growth in these lower gross margin segments delivered incremental revenue and profits, it had a negative effect on our consolidated gross margin. Although the timing of resolution of audits is not certain, the Company evaluates all domestic and foreign audit issues in the aggregate, along with the expiration of applicable statutes of limitations, and estimates that it is reasonably possible the total gross unrecognized tax benefits could decrease by up to $70 million within the next 12 months. Find PUMA's fastest annual report and our annual reports back to 1998 as well as statements about our quarterly results. As of May 31, 2013 , the Company held $ 2,229 million of available-for-sale securities with maturity dates within one year from purchase date and $ 399 million with maturity dates over one year and less than five years from purchase date within Short-term investments. Because of its inherent limitations, internal control over financial reporting may not prevent or detect every misstatement and instance of fraud. Worldwide futures orders for NIKE Brand (excluding NIKE Golf and Hurley) athletic footwear and apparel, scheduled for delivery from June through November 2014, were $13.3 billion compared to $12.1 billion for the same period last year. Further, our unaffiliated contract manufacturers have experienced and may continue to experience in the future, unexpected increases in work wages, whether government mandated or otherwise. Prior to NIKE, Mr. Pliska was with Price Waterhouse from 1984 to 1995. Each NIKE Brand geographic segment operates predominantly in one industry: the design, development, marketing, and selling of athletic footwear, apparel, and equipment. shareholders might believe to be in their best interests or in which shareholders might receive a premium for their common stock over the prevailing market price. The amounts represent the minimum payments required by legally binding contracts and agreements that specify all significant terms, including open purchase orders for non-product purchases. 2018 Annual Report 3 ... Apr 19, 2016. We periodically discover products that are counterfeit reproductions of our products or that otherwise infringe on our intellectual property rights. If we were to repatriate indefinitely reinvested foreign funds, we would be required to accrue and pay additional U.S. taxes less applicable foreign tax credits. This agreement resulted in a reduction in the Company's permanently reinvested foreign earnings, which increased the effective income tax rate and Income taxes payable. 12/31/2015. To minimize the impact of translating foreign currency denominated revenues and expenses into U.S. The value of all grants of restricted stock and restricted stock units was established by the market price on the date of grant. Footwear Index. All changes in fair value of the derivatives designated as net investment hedges, except ineffective portions, are reported in the Cumulative translation adjustment component of Other comprehensive income along with the foreign currency translation adjustments on those investments. On a reported basis, EBIT for Converse grew 8% for fiscal 2013 as higher revenues and gross margin were partially offset by higher selling and administrative expense. The information required by Items 404 and 407(a) of Regulation S-K is included under "Election of Directors - Transactions with Related Persons" and "Corporate Governance - Director Independence" in the definitive Proxy Statement for our 2014 Annual Meeting of Shareholders and is incorporated herein by reference. Because of the uncertainty inherent in these matters, actual results could differ from the estimates we use in applying the critical accounting policies. Factors that would necessitate an impairment assessment include a significant adverse change in the extent or manner in which an asset is used, a significant adverse change in legal factors or the business climate that could affect the value of the asset, or a significant decline in the observable market value of an asset, among others. Accordingly, the variability involved in net investment hedges is substantially less than that of other types of hedge transactions and we do not expect any material ineffectiveness. During fiscal 2014, NIKE IHM, Inc., a wholly-owned subsidiary of NIKE, Inc., with facilities near Beaverton, Oregon and in St. Louis, Missouri, as well as independent contractors in China and Vietnam, were our largest suppliers of the Air-Sole cushioning components used in footwear. Company contributions to the savings plan were $51 million , $46 million , and $42 million for the years ended May 31, 2014 , 2013 , and 2012 , respectively, and are included in Total selling and administrative expense. On a currency neutral basis, all territories in Western Europe reported revenue growth for fiscal 2014, except Italy and Iberia, which declined 7% and 1%, respectively. These forwards are not designated as hedging instruments under the accounting standards for derivatives and hedging. Global gross profit of Nike from 2014 to 2020; Nike's revenue … Footwear Index and the Standard & Poor's Apparel, Accessories, and Luxury Goods Index include companies in two major lines of business in which the Company competes. Additionally, if any of our primary contract manufacturers fail to make timely shipments, do not meet our quality standards, or otherwise fail to deliver us product in accordance with our plans, there could be a material adverse effect on our results of operations. The new guidance is effective for the Company beginning June 1, 2017. Our accounting systems include controls designed to reasonably assure assets are safeguarded from unauthorized use or disposition and provide for the preparation of financial statements in conformity with generally accepted accounting principles. Furthermore, we depend on information technology systems and personal data collection and use for digital marketing, digital commerce, and the marketing and use of our Digital Sport products. The Company considers all available-for-sale securities, including those with maturity dates beyond 12 months, as available to support current operational liquidity needs and therefore classifies all securities with maturity dates beyond three months at the date of purchase as current assets within Short-term investments on the Consolidated Balance Sheets. The Company uses a three-level hierarchy established by the Financial Accounting Standards Board ("FASB") that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach, and cost approach). Comparable direct distribution markets unit sales increased 12% and average selling price per unit increased 1% for fiscal 2014. Management considers its relationship with employees to be excellent. The bonds mature in 2017 and 2018 and the Company does not have the ability to re-negotiate the terms of the debt agreements and would incur significant financial penalties if the notes were paid off prior to maturity. NIKE Brand apparel and equipment products are also shipped from our Foothill Ranch, California distribution center. The Class A Common Stock is not publicly traded but each share is convertible upon request of the holder into one share of Class B Common Stock. Further, as of May 31, 2014 those counterparties which were required to post collateral complied with such requirements. With 48000 employees, NIKE’s operation cuts across different regions in the world including Canada, Asia, Latin America, Europe, and Africa. The information required by Item 403 of Regulation S-K is included under "Election of Directors - Stock Holdings of Certain Owners and Management" in the definitive Proxy Statement for our 2014 Annual Meeting of Shareholders and is incorporated herein by reference. Selling and administrative expense increased due to higher operating overhead costs to support the expansion of our DTC business and infrastructure investments to support growth, as well as increases in demand creation spending to support the World Cup and key product launches. Coronavirus - we're here to help And i choose Nike as i am more of a sports guy. We also lease an office complex in Shanghai, China, our headquarters for Greater China, occupied by employees focused on implementing our wholesale, DTC and merchandising strategies in the region, among other functions. The market for prime real estate is competitive. She was with Gap, Inc., as President and Chief Executive Officer of Banana Republic from 1995 to 2000, also serving as Chief Executive Officer of Gap, Inc. We may not share We maintain disclosure controls and procedures that are designed to ensure information required to be disclosed in our Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure. The weighted average expected life of options is based on an analysis of historical and expected future exercise patterns. (Dollars in millions, except per share data and financial ratios), Net income (loss) from discontinued operations. November 20, 2014 NIKE, Inc. A major driver of the change was a $282 million increase in additions to property, plant and equipment from $598 million in fiscal 2013 to $880 million in fiscal 2014, reflective of investments in infrastructure to support current and future growth, as well as digital capabilities. Assets and liabilities measured using unobservable inputs are an immaterial portion of our portfolio. NIKE 2014 Annual Report This annual report was a semester long project for my art direction class. Dollar-denominated available-for-sale debt securities and certain intercompany transactions. In addition, we have significant amounts of cash, cash equivalents, and other investments on deposit or in accounts with banks or other financial institutions in the United States and abroad. Constant currency footwear revenues growth in Western Europe reflected increases in every key category, most notably our Sportswear, Running, Football (Soccer), and Basketball categories. The Company plans to reflect the revised amounts in its quarterly Condensed Consolidated Financial Statements for fiscal 2014 in future filings containing such information. Beginning November 30, 2012, the Company classified the Cole Haan disposal group as held-for-sale and presented the results of Cole Haan's operations in the Net income (loss) from discontinued operations line item on the Consolidated Statements of Income. The constant currency increase in Western Europe apparel revenues was due to increases in Football (Soccer), Running, and Women's Training, partially offset by a decline in Sportswear. Constant currency apparel revenues growth in fiscal 2014 was driven by growth in every key category, led by Football (Soccer) and Running. The NTC, whose functional currency is the U.S. Dollar, then sells the products to NIKE entities in their respective functional currencies. Certain written and oral statements, other than purely historic information, including estimates, projections, statements relating to NIKE's business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, made or incorporated by reference from time to time by NIKE or its representatives in this report, other reports, filings with the SEC, press releases, conferences, or otherwise, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended. The Redeemable p referred s tock has been fully issued to Sojitz America and is not blank check preferred stock. We sell to thousands of retail accounts and operate 16 distribution centers outside of the United States. This method requires the Company to estimate the future revenue for the related brands, the appropriate royalty rate and the weighted average cost of capital. 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