OPERATING SEGMENTS

3 Months Ended

Aug. 31, 2022

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 AUGUST 31,
(Dollars in millions)	2022		2021
REVENUES
North America	$	5,510	$	4,879
Europe, Middle East & Africa	3,333		3,307
Greater China	1,656		1,982
Asia Pacific & Latin America	1,535		1,465
Global Brand Divisions	14		7
Total NIKE Brand	12,048		11,640
Converse	643		629
Corporate	(4)		(21)
TOTAL NIKE, INC. REVENUES	$	12,687	$	12,248
EARNINGS BEFORE INTEREST AND TAXES
North America	$	1,377	$	1,434
Europe, Middle East & Africa	975		875
Greater China	541		701
Asia Pacific & Latin America	500		481
Global Brand Divisions	(1,187)		(987)
Converse	209		204
Corporate	(574)		(545)
Interest expense (income), net	13		57
TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES	$	1,828	$	2,106

	AUGUST 31,		MAY 31,
(Dollars in millions)	2022		2022
ACCOUNTS RECEIVABLE, NET
North America	$	2,050	$	1,850
Europe, Middle East & Africa	1,614		1,351
Greater China	205		406
Asia Pacific & Latin America(1)	623		664
Global Brand Divisions	86		113
Total NIKE Brand	4,578		4,384
Converse	255		230
Corporate	127		53
TOTAL ACCOUNTS RECEIVABLE, NET	$	4,960	$	4,667
INVENTORIES
North America	$	4,699	$	4,098
Europe, Middle East & Africa	2,139		1,887
Greater China	1,115		1,044
Asia Pacific & Latin America(1)	837		686
Global Brand Divisions	197		197
Total NIKE Brand	8,987		7,912
Converse	319		279
Corporate	356		229
TOTAL INVENTORIES	$	9,662	$	8,420

	AUGUST 31,		MAY 31,
(Dollars in millions)	2022		2022
PROPERTY, PLANT AND EQUIPMENT, NET
North America	$	683	$	639
Europe, Middle East & Africa	873		920
Greater China	290		303
Asia Pacific & Latin America(1)	255		274
Global Brand Divisions	794		789
Total NIKE Brand	2,895		2,925
Converse	45		49
Corporate	1,838		1,817
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET	$	4,778	$	4,791

(1)Excludes assets held-for-sale as of August 31, 2022 and May 31, 2022. See Note 13 — Acquisitions and Divestitures for additional information.