XML 59 R24.htm IDEA: XBRL DOCUMENT v3.24.2
OPERATING SEGMENTS AND RELATED INFORMATION
 12 Months Ended
May 31, 2024
Segment Reporting [Abstract]  
OPERATING SEGMENTS AND RELATED INFORMATION
NOTE 15 — OPERATING SEGMENTS AND RELATED INFORMATION
The Company's operating segments reflect 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 — 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)
202420232022
REVENUES
North America$21,396 $21,608 $18,353 
Europe, Middle East & Africa13,607 13,418 12,479 
Greater China7,545 7,248 7,547 
Asia Pacific & Latin America6,729 6,431 5,955 
Global Brand Divisions45 58 102 
Total NIKE Brand49,322 48,763 44,436 
Converse2,082 2,427 2,346 
Corporate(42)27 (72)
TOTAL NIKE, INC. REVENUES$51,362 $51,217 $46,710 
EARNINGS BEFORE INTEREST AND TAXES
North America$5,822 $5,454 $5,114 
Europe, Middle East & Africa3,388 3,531 3,293 
Greater China2,309 2,283 2,365 
Asia Pacific & Latin America1,885 1,932 1,896 
Global Brand Divisions(4,720)(4,841)(4,262)
Converse474 676 669 
Corporate(2,619)(2,840)(2,219)
Interest expense (income), net(161)(6)205 
TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES$6,700 $6,201 $6,651 
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT
North America$102 $283 $146 
Europe, Middle East & Africa206 215 197 
Greater China27 56 78 
Asia Pacific & Latin America75 64 56 
Global Brand Divisions233 271 222 
Total NIKE Brand643 889 699 
Converse7 7 9 
Corporate72 140 103 
TOTAL ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT$722 $1,036 $811 
DEPRECIATION
North America$152 $128 $124 
Europe, Middle East & Africa146 120 134 
Greater China56 54 41 
Asia Pacific & Latin America51 42 42 
Global Brand Divisions236 211 220 
Total NIKE Brand641 555 561 
Converse17 17 22 
Corporate138 131 134 
TOTAL DEPRECIATION$796 $703 $717 
AS OF MAY 31,
(Dollars in millions)
20242023
ACCOUNTS RECEIVABLE, NET
North America$1,723 $1,653 
Europe, Middle East & Africa1,239 1,197 
Greater China327 162 
Asia Pacific & Latin America
792 700 
Global Brand Divisions103 96 
Total NIKE Brand4,184 3,808 
Converse201 235 
Corporate42 88 
TOTAL ACCOUNTS RECEIVABLE, NET$4,427 $4,131 
INVENTORIES
North America$3,134 $3,806 
Europe, Middle East & Africa2,028 2,167 
Greater China1,070 973 
Asia Pacific & Latin America
810 894 
Global Brand Divisions166 232 
Total NIKE Brand7,208 8,072 
Converse296 305 
Corporate15 77 
TOTAL INVENTORIES$7,519 $8,454 
PROPERTY, PLANT AND EQUIPMENT, NET
North America$744 $794 
Europe, Middle East & Africa1,089 1,009 
Greater China258 292 
Asia Pacific & Latin America
282 279 
Global Brand Divisions842 840 
Total NIKE Brand3,215 3,214 
Converse27 38 
Corporate1,758 1,829 
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET$5,000 $5,081 
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 similar to that as reported above for the NIKE Brand operating segments with the exception of the United States. Revenues derived in the United States were $21,551 million, $22,007 million and $18,749 million for the fiscal years ended May 31, 2024, 2023 and 2022, 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)
20242023
United States$4,837 $5,129 
Belgium757 702 
China501 559 
Other
1,623 1,614 
TOTAL LONG-LIVED ASSETS
$7,718 $8,004