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Operating Segments and Related Information
 12 Months Ended
May 31, 2022
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)
202220212020
REVENUES
North America$18,353 $17,179 $14,484 
Europe, Middle East & Africa12,479 11,456 9,347 
Greater China7,547 8,290 6,679 
Asia Pacific & Latin America5,955 5,343 5,028 
Global Brand Divisions102 25 30 
Total NIKE Brand44,436 42,293 35,568 
Converse2,346 2,205 1,846 
Corporate(72)40 (11)
TOTAL NIKE, INC. REVENUES$46,710 $44,538 $37,403 
EARNINGS BEFORE INTEREST AND TAXES
North America$5,114 $5,089 $2,899 
Europe, Middle East & Africa3,293 2,435 1,541 
Greater China2,365 3,243 2,490 
Asia Pacific & Latin America1,896 1,530 1,184 
Global Brand Divisions(4,262)(3,656)(3,468)
Converse669 543 297 
Corporate(2,219)(2,261)(1,967)
Interest expense (income), net205 262 89 
TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES$6,651 $6,661 $2,887 
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT
North America$146 $98 $110 
Europe, Middle East & Africa197 153 139 
Greater China78 94 28 
Asia Pacific & Latin America56 54 41 
Global Brand Divisions222 278 438 
Total NIKE Brand699 677 756 
Converse9 7 12 
Corporate103 107 356 
TOTAL ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT$811 $791 $1,124 
DEPRECIATION
North America$124 $130 $148 
Europe, Middle East & Africa134 136 132 
Greater China41 46 44 
Asia Pacific & Latin America42 43 46 
Global Brand Divisions220 222 214 
Total NIKE Brand561 577 584 
Converse22 26 25 
Corporate134 141 112 
TOTAL DEPRECIATION$717 $744 $721 
AS OF MAY 31,
(Dollars in millions)
20222021
ACCOUNTS RECEIVABLE, NET
North America$1,850 $1,777 
Europe, Middle East & Africa1,351 1,349 
Greater China406 288 
Asia Pacific & Latin America(1)
664 643 
Global Brand Divisions113 128 
Total NIKE Brand4,384 4,185 
Converse230 225 
Corporate53 53 
TOTAL ACCOUNTS RECEIVABLE, NET$4,667 $4,463 
INVENTORIES
North America$4,098 $2,851 
Europe, Middle East & Africa1,887 1,821 
Greater China1,044 1,247 
Asia Pacific & Latin America(1)
686 667 
Global Brand Divisions197 153 
Total NIKE Brand7,912 6,739 
Converse279 290 
Corporate229 (175)
TOTAL INVENTORIES$8,420 $6,854 
PROPERTY, PLANT AND EQUIPMENT, NET
North America$639 $617 
Europe, Middle East & Africa920 982 
Greater China303 288 
Asia Pacific & Latin America(1)
274 304 
Global Brand Divisions789 780 
Total NIKE Brand2,925 2,971 
Converse49 63 
Corporate1,817 1,870 
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET$4,791 $4,904 
(1)Excludes assets held-for-sale as of May 31, 2022 and 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 $18,749 million, $17,363 million and $14,625 million for the fiscal years ended May 31, 2022, 2021 and 2020, 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 consist of property, plant and equipment, net and operating lease ROU assets, net, were as follows:
MAY 31,
(Dollars in millions)
20222021
United States$4,916 $4,927 
Belgium646 676 
China538 518