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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)
202120202019
REVENUES
North America$17,179 $14,484 $15,902 
Europe, Middle East & Africa11,456 9,347 9,812 
Greater China8,290 6,679 6,208 
Asia Pacific & Latin America5,343 5,028 5,254 
Global Brand Divisions25 30 42 
Total NIKE Brand42,293 35,568 37,218 
Converse2,205 1,846 1,906 
Corporate40 (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 & Africa2,435 1,541 1,995 
Greater China3,243 2,490 2,376 
Asia Pacific & Latin America1,530 1,184 1,323 
Global Brand Divisions(3,656)(3,468)(3,262)
Converse543 297 303 
Corporate(2,261)(1,967)(1,810)
Interest expense (income), net262 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 & Africa153 139 233 
Greater China94 28 49 
Asia Pacific & Latin America54 41 47 
Global Brand Divisions278 438 278 
Total NIKE Brand677 756 724 
Converse7 12 18 
Corporate107 356 333 
TOTAL ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT$791 $1,124 $1,075 
DEPRECIATION
North America$130 $148 $149 
Europe, Middle East & Africa136 132 111 
Greater China46 44 50 
Asia Pacific & Latin America43 46 53 
Global Brand Divisions222 214 195 
Total NIKE Brand577 584 558 
Converse26 25 31 
Corporate141 112 116 
TOTAL DEPRECIATION$744 $721 $705 
AS OF MAY 31,
(Dollars in millions)
20212020
ACCOUNTS RECEIVABLE, NET
North America$1,777 $1,020 
Europe, Middle East & Africa1,349 712 
Greater China288 321 
Asia Pacific & Latin America(1)
643 425 
Global Brand Divisions128 65 
Total NIKE Brand4,185 2,543 
Converse225 149 
Corporate53 57 
TOTAL ACCOUNTS RECEIVABLE, NET$4,463 $2,749 
INVENTORIES
North America$2,851 $3,077 
Europe, Middle East & Africa1,821 2,070 
Greater China1,247 882 
Asia Pacific & Latin America(1)
667 770 
Global Brand Divisions153 137 
Total NIKE Brand6,739 6,936 
Converse290 341 
Corporate(175)90 
TOTAL INVENTORIES$6,854 $7,367 
PROPERTY, PLANT AND EQUIPMENT, NET
North America$617 $645 
Europe, Middle East & Africa982 885 
Greater China288 214 
Asia Pacific & Latin America(1)
304 296 
Global Brand Divisions780 830 
Total NIKE Brand2,971 2,870 
Converse63 80 
Corporate1,870 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)
20212020
United States$4,927 $5,114 
Belgium676 606 
China518 457