OPERATING SEGMENTS

3 Months Ended

Aug. 31, 2023

Segment Reporting [Abstract]

OPERATING SEGMENTS

NOTE 10 — 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)	2023		2022
REVENUES
North America	$	5,423	$	5,510
Europe, Middle East & Africa	3,610		3,333
Greater China	1,735		1,656
Asia Pacific & Latin America	1,572		1,535
Global Brand Divisions	13		14
Total NIKE Brand	12,353		12,048
Converse	588		643
Corporate	(2)		(4)
TOTAL NIKE, INC. REVENUES	$	12,939	$	12,687
EARNINGS BEFORE INTEREST AND TAXES
North America	$	1,434	$	1,377
Europe, Middle East & Africa	930		975
Greater China	525		541
Asia Pacific & Latin America	414		500
Global Brand Divisions	(1,205)		(1,187)
Converse	167		209
Corporate	(651)		(574)
Interest expense (income), net	(34)		13
TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES	$	1,648	$	1,828

	AUGUST 31,		MAY 31,
(Dollars in millions)	2023		2023
ACCOUNTS RECEIVABLE, NET
North America	$	1,932	$	1,653
Europe, Middle East & Africa	1,562		1,197
Greater China	161		162
Asia Pacific & Latin America	687		700
Global Brand Divisions	84		96
Total NIKE Brand	4,426		3,808
Converse	240		235
Corporate	83		88
TOTAL ACCOUNTS RECEIVABLE, NET	$	4,749	$	4,131
INVENTORIES
North America	$	3,761	$	3,806
Europe, Middle East & Africa	2,220		2,167
Greater China	1,182		973
Asia Pacific & Latin America	1,072		894
Global Brand Divisions	222		232
Total NIKE Brand	8,457		8,072
Converse	300		305
Corporate	(59)		77
TOTAL INVENTORIES(1)	$	8,698	$	8,454

(1)Inventories as of August 31, 2023 and May 31, 2023, were substantially all finished goods.

	AUGUST 31,		MAY 31,
(Dollars in millions)	2023		2023
PROPERTY, PLANT AND EQUIPMENT, NET
North America	$	792	$	794
Europe, Middle East & Africa	1,043		1,009
Greater China	276		292
Asia Pacific & Latin America	275		279
Global Brand Divisions	889		840
Total NIKE Brand	3,275		3,214
Converse	36		38
Corporate	1,798		1,829
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET	$	5,109	$	5,081