XML 30 R19.htm IDEA: XBRL DOCUMENT v3.21.4
Operating Segments
 6 Months Ended
Nov. 30, 2021
Segment Reporting [Abstract]  
Operating Segments
NOTE 11 — OPERATING SEGMENTS
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.
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.
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 Unaudited Condensed 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.
 THREE MONTHS ENDED NOVEMBER 30,SIX MONTHS ENDED NOVEMBER 30,
(Dollars in millions)
2021202020212020
REVENUES
North America$4,477 $4,006 $9,356 $8,231 
Europe, Middle East & Africa3,142 2,958 6,449 5,868 
Greater China1,844 2,298 3,826 4,078 
Asia Pacific & Latin America1,347 1,471 2,812 2,570 
Global Brand Divisions6 8 13 12 
Total NIKE Brand10,816 10,741 22,456 20,759 
Converse557 476 1,186 1,039 
Corporate(16)26 (37)39 
TOTAL NIKE, INC. REVENUES$11,357 $11,243 $23,605 $21,837 
EARNINGS BEFORE INTEREST AND TAXES
North America$1,235 $1,023 $2,669 $2,325 
Europe, Middle East & Africa806 660 1,681 1,352 
Greater China569 891 1,270 1,579 
Asia Pacific & Latin America388 424 869 704 
Global Brand Divisions(1,071)(841)(2,058)(1,694)
Converse132 87 336 255 
Corporate(503)(718)(1,048)(1,215)
Interest expense (income), net55 70 112 135 
TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES$1,501 $1,456 $3,607 $3,171 
NOVEMBER 30,MAY 31,
(Dollars in millions)
20212021
ACCOUNTS RECEIVABLE, NET
North America$1,469 $1,777 
Europe, Middle East & Africa1,176 1,349 
Greater China217 288 
Asia Pacific & Latin America(1)
532 643 
Global Brand Divisions76 128 
Total NIKE Brand3,470 4,185 
Converse218 225 
Corporate58 53 
TOTAL ACCOUNTS RECEIVABLE, NET$3,746 $4,463 
INVENTORIES
North America$2,796 $2,851 
Europe, Middle East & Africa1,426 1,821 
Greater China1,120 1,247 
Asia Pacific & Latin America(1)
636 667 
Global Brand Divisions236 153 
Total NIKE Brand6,214 6,739 
Converse256 290 
Corporate36 (175)
TOTAL INVENTORIES$6,506 $6,854 
NOVEMBER 30,MAY 31,
(Dollars in millions)
20212021
PROPERTY, PLANT AND EQUIPMENT, NET
North America$616 $617 
Europe, Middle East & Africa935 982 
Greater China302 288 
Asia Pacific & Latin America(1)
295 304 
Global Brand Divisions791 780 
Total NIKE Brand2,939 2,971 
Converse55 63 
Corporate1,818 1,870 
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET$4,812 $4,904 
(1)Excludes assets held-for-sale as of November 30, 2021 and May 31, 2021. See Note 12 — Acquisitions and Divestitures for additional information.