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Operating Segments and Related Information
 12 Months Ended
May 31, 2023
Segment Reporting [Abstract]  
Operating Segments and Related Information
NOTE 15 — 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. Refer to Note 18 — Acquisitions and Divestitures for information regarding the 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.
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)
202320222021
REVENUES
North America$21,608 $18,353 $17,179 
Europe, Middle East & Africa13,418 12,479 11,456 
Greater China7,248 7,547 8,290 
Asia Pacific & Latin America6,431 5,955 5,343 
Global Brand Divisions58 102 25 
Total NIKE Brand48,763 44,436 42,293 
Converse2,427 2,346 2,205 
Corporate27 (72)40 
TOTAL NIKE, INC. REVENUES$51,217 $46,710 $44,538 
EARNINGS BEFORE INTEREST AND TAXES
North America$5,454 $5,114 $5,089 
Europe, Middle East & Africa3,531 3,293 2,435 
Greater China2,283 2,365 3,243 
Asia Pacific & Latin America1,932 1,896 1,530 
Global Brand Divisions(4,841)(4,262)(3,656)
Converse676 669 543 
Corporate(2,840)(2,219)(2,261)
Interest expense (income), net(6)205 262 
TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES$6,201 $6,651 $6,661 
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT
North America$283 $146 $98 
Europe, Middle East & Africa215 197 153 
Greater China56 78 94 
Asia Pacific & Latin America64 56 54 
Global Brand Divisions271 222 278 
Total NIKE Brand889 699 677 
Converse7 9 7 
Corporate140 103 107 
TOTAL ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT$1,036 $811 $791 
DEPRECIATION
North America$128 $124 $130 
Europe, Middle East & Africa120 134 136 
Greater China54 41 46 
Asia Pacific & Latin America42 42 43 
Global Brand Divisions211 220 222 
Total NIKE Brand555 561 577 
Converse17 22 26 
Corporate131 134 141 
TOTAL DEPRECIATION$703 $717 $744 
AS OF MAY 31,
(Dollars in millions)
20232022
ACCOUNTS RECEIVABLE, NET
North America$1,653 $1,850 
Europe, Middle East & Africa1,197 1,351 
Greater China162 406 
Asia Pacific & Latin America(1)
700 664 
Global Brand Divisions96 113 
Total NIKE Brand3,808 4,384 
Converse235 230 
Corporate88 53 
TOTAL ACCOUNTS RECEIVABLE, NET$4,131 $4,667 
INVENTORIES
North America$3,806 $4,098 
Europe, Middle East & Africa2,167 1,887 
Greater China973 1,044 
Asia Pacific & Latin America(1)
894 686 
Global Brand Divisions232 197 
Total NIKE Brand8,072 7,912 
Converse305 279 
Corporate77 229 
TOTAL INVENTORIES$8,454 $8,420 
PROPERTY, PLANT AND EQUIPMENT, NET
North America$794 $639 
Europe, Middle East & Africa1,009 920 
Greater China292 303 
Asia Pacific & Latin America(1)
279 274 
Global Brand Divisions840 789 
Total NIKE Brand3,214 2,925 
Converse38 49 
Corporate1,829 1,817 
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET$5,081 $4,791 
(1)Excludes assets held-for-sale as of May 31, 2022. See Note 18 — 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 $22,007 million, $18,749 million and $17,363 million for the fiscal years ended May 31, 2023, 2022 and 2021, 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)
20232022
United States$5,129 $4,916 
Belgium702 646 
China559 538