XML 49 R25.htm IDEA: XBRL DOCUMENT
v3.21.2

Operating Segments and Related Information | 12 Months Ended
--- | ---
May 31, 2021
Segment Reporting [Abstract] |
Operating Segments and Related Information |
NOTE 17 — OPERATING SEGMENTS AND RELATED INFORMATION
The Company's operating segments are evidence of the structure of the Company's internal organization. The NIKE Brand segments are defined by geographic regions for operations participating in NIKE Brand sales activity. Each NIKE Brand geographic segment operates predominantly in one industry: the design, development, marketing and selling of athletic footwear, apparel and equipment. The Company's reportable operating segments for the NIKE Brand are: North America; Europe, Middle East & Africa (EMEA); Greater China; and Asia Pacific & Latin America (APLA), and include results for the NIKE and Jordan brands, results for the Hurley brand, prior to its divestiture in fiscal 2020, were included in North America. Refer to Note 20 — Acquisitions and Divestitures for information regarding the fiscal 2020 divestiture of the Company's wholly-owned subsidiary, Hurley, and the planned transition of NIKE Brand businesses in certain countries within APLA to third-party distributors. The Company's NIKE Direct operations are managed within each NIKE Brand geographic operating segment. Converse is also a reportable segment for the Company and operates in one industry: the design, marketing, licensing and selling of athletic lifestyle sneakers, apparel and accessories. Global Brand Divisions is included within the NIKE Brand for presentation purposes to align with the way management views the Company. Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment. Global Brand Divisions costs represent demand creation and operating overhead expense that include product creation and design expenses centrally managed for the NIKE Brand, as well as costs associated with NIKE Direct global digital operations and enterprise technology. Corporate consists primarily of unallocated general and administrative expenses, including expenses associated with centrally managed departments; depreciation and amortization related to the Company's headquarters; unallocated insurance, benefit and compensation programs, including stock-based compensation; and certain foreign currency gains and losses, including certain hedge gains and losses. For the fiscal year ended May 31, 2020, Corporate included a non-recurring impairment charge, recognized as a result of the Company's decision to transition certain NIKE Brand businesses within APLA to a third-party distributor. This charge primarily reflected the anticipated release of associated non-cash cumulative foreign currency translation losses. For more information regarding this charge, refer to Note 20 — Acquisitions and Divestitures. The primary financial measure used by the Company to evaluate performance of individual operating segments is earnings before interest and taxes (EBIT), which represents Net income before Interest expense (income), net and Income tax expense in the Consolidated Statements of Income. 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 and twelve months in advance of the future selling seasons to which they relate (specifically, for each currency, one standard rate applies to the fall and holiday selling seasons, and one standard rate applies to the spring and summer selling seasons) 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 the 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.
| YEAR ENDED MAY 31,
(Dollars in millions) | 2021 | 2020 | 2019
REVENUES |  |  |
North America | $ | 17,179 |  | $ | 14,484 |  | $ | 15,902 |
Europe, Middle East & Africa | 11,456 |  | 9,347 |  | 9,812 |
Greater China | 8,290 |  | 6,679 |  | 6,208 |
Asia Pacific & Latin America | 5,343 |  | 5,028 |  | 5,254 |
Global Brand Divisions | 25 |  | 30 |  | 42 |
Total NIKE Brand | 42,293 |  | 35,568 |  | 37,218 |
Converse | 2,205 |  | 1,846 |  | 1,906 |
Corporate | 40 |  | (11) |  | (7) |
TOTAL NIKE, INC. REVENUES | $ | 44,538 |  | $ | 37,403 |  | $ | 39,117 |
EARNINGS BEFORE INTEREST AND TAXES |  |  |
North America | $ | 5,089 |  | $ | 2,899 |  | $ | 3,925 |
Europe, Middle East & Africa | 2,435 |  | 1,541 |  | 1,995 |
Greater China | 3,243 |  | 2,490 |  | 2,376 |
Asia Pacific & Latin America | 1,530 |  | 1,184 |  | 1,323 |
Global Brand Divisions | (3,656) |  | (3,468) |  | (3,262) |
Converse | 543 |  | 297 |  | 303 |
Corporate | (2,261) |  | (1,967) |  | (1,810) |
Interest expense (income), net | 262 |  | 89 |  | 49 |
TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES | $ | 6,661 |  | $ | 2,887 |  | $ | 4,801 |
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT |  |  |
North America | $ | 98 |  | $ | 110 |  | $ | 117 |
Europe, Middle East & Africa | 153 |  | 139 |  | 233 |
Greater China | 94 |  | 28 |  | 49 |
Asia Pacific & Latin America | 54 |  | 41 |  | 47 |
Global Brand Divisions | 278 |  | 438 |  | 278 |
Total NIKE Brand | 677 |  | 756 |  | 724 |
Converse | 7 |  | 12 |  | 18 |
Corporate | 107 |  | 356 |  | 333 |
TOTAL ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT | $ | 791 |  | $ | 1,124 |  | $ | 1,075 |
DEPRECIATION |  |  |
North America | $ | 130 |  | $ | 148 |  | $ | 149 |
Europe, Middle East & Africa | 136 |  | 132 |  | 111 |
Greater China | 46 |  | 44 |  | 50 |
Asia Pacific & Latin America | 43 |  | 46 |  | 53 |
Global Brand Divisions | 222 |  | 214 |  | 195 |
Total NIKE Brand | 577 |  | 584 |  | 558 |
Converse | 26 |  | 25 |  | 31 |
Corporate | 141 |  | 112 |  | 116 |
TOTAL DEPRECIATION | $ | 744 |  | $ | 721 |  | $ | 705 |
| AS OF MAY 31,
(Dollars in millions) | 2021 | 2020
ACCOUNTS RECEIVABLE, NET |  |
North America | $ | 1,777 |  | $ | 1,020 |
Europe, Middle East & Africa | 1,349 |  | 712 |
Greater China | 288 |  | 321 |
Asia Pacific & Latin America(1) | 643 |  | 425 |
Global Brand Divisions | 128 |  | 65 |
Total NIKE Brand | 4,185 |  | 2,543 |
Converse | 225 |  | 149 |
Corporate | 53 |  | 57 |
TOTAL ACCOUNTS RECEIVABLE, NET | $ | 4,463 |  | $ | 2,749 |
INVENTORIES |  |
North America | $ | 2,851 |  | $ | 3,077 |
Europe, Middle East & Africa | 1,821 |  | 2,070 |
Greater China | 1,247 |  | 882 |
Asia Pacific & Latin America(1) | 667 |  | 770 |
Global Brand Divisions | 153 |  | 137 |
Total NIKE Brand | 6,739 |  | 6,936 |
Converse | 290 |  | 341 |
Corporate | (175) |  | 90 |
TOTAL INVENTORIES | $ | 6,854 |  | $ | 7,367 |
PROPERTY, PLANT AND EQUIPMENT, NET |  |
North America | $ | 617 |  | $ | 645 |
Europe, Middle East & Africa | 982 |  | 885 |
Greater China | 288 |  | 214 |
Asia Pacific & Latin America(1) | 304 |  | 296 |
Global Brand Divisions | 780 |  | 830 |
Total NIKE Brand | 2,971 |  | 2,870 |
Converse | 63 |  | 80 |
Corporate | 1,870 |  | 1,916 |
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET | $ | 4,904 |  | $ | 4,866 |
(1)Excludes assets held-for-sale as of May 31, 2021. See Note 20 — Acquisitions and Divestitures for additional information. REVENUES AND LONG-LIVED ASSETS BY GEOGRAPHIC AREA After allocation of revenues for Global Brand Divisions, Converse and Corporate to geographical areas based on the location where the sales originated, revenues by geographical area are essentially the same as reported above for the NIKE Brand operating segments with the exception of the United States. Revenues derived in the United States were $17,363 million, $14,625 million and $16,091 million for the fiscal years ended May 31, 2021, 2020 and 2019, respectively. The Company's largest concentrations of long-lived assets primarily consist of the Company's corporate headquarters, retail locations and distribution facilities in the United States and China, as well as distribution facilities in Belgium. Long-lived assets attributable to operations in these countries, which primarily consists of property, plant and equipment, net and operating lease ROU assets, net, were as follows:
| MAY 31,
(Dollars in millions) | 2021 | 2020
United States | $ | 4,927 |  | $ | 5,114 |
Belgium | 676 |  | 606 |
China | 518 |  | 457 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration