Nike 2003 Annual Report Download - page 3

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PART I
Item 1. Business
General
NIKE, Inc. was incorporated in 1968 under the laws of the state of Oregon. As used in this report, the terms
“we”, “us”, “NIKE” and the “Company” refer to NIKE, Inc. and its predecessors, subsidiaries and affiliates,
unless the context indicates otherwise. Our Internet address is www.nike.com. On our NIKE Corporate web site,
located at www.nikebiz.com, we post the following filings as soon as reasonably practicable after they are
electronically filed with or furnished to the Securities and Exchange Commission: our annual report on
Form 10-K, our quarterly reports on Form 10-Q, our current reports on Form 8-K and any amendments to those
reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities and Exchange Act of 1934. All such
filings on our NIKE Corporate web site are available free of charge.
Our principal business activity involves the design, development and worldwide marketing of high quality
footwear, apparel, equipment, and accessory products. NIKE is the largest seller of athletic footwear and athletic
apparel in the world. We sell our products to approximately 18,000 retail accounts in the United States and
through a mix of independent distributors, licensees and subsidiaries in nearly 200 countries around the world.
Virtually all of our products are manufactured by independent contractors. Virtually all footwear products are
produced outside the United States, while apparel and equipment products are produced both in the United States
and abroad.
Products
NIKE’s athletic footwear products are designed primarily for specific athletic use, although a large
percentage of the products are worn for casual or leisure purposes. We place considerable emphasis on high
quality construction and innovative design for men, women and children. Running, basketball, children’s, cross-
training and women’s shoes are currently our top-selling product categories and we expect them to continue to
lead in product sales in the near future. However, we also market shoes designed for outdoor activities, tennis,
golf, soccer, baseball, football, bicycling, volleyball, wrestling, cheerleading, aquatic activities, hiking, and other
athletic and recreational uses.
We sell active sports apparel covering most of the above categories, athletically inspired lifestyle apparel, as
well as athletic bags and accessory items. NIKE apparel and accessories are designed to complement our athletic
footwear products, feature the same trademarks and are sold through the same marketing and distribution
channels. We often market footwear, apparel and accessories in “collections” of similar design or for specific
purposes. We also market apparel with licensed college and professional team and league logos.
We sell a line of performance equipment under the NIKE brand name, including sport balls, timepieces,
eyewear, skates, bats, gloves, and other equipment designed for sports activities. We also have agreements for
licensees to produce and sell NIKE brand swimwear, women’s sports bras, cycling apparel, maternity exercise wear,
children’s clothing, school supplies, timepieces, and electronic media devices. We also sell small amounts of various
plastic products to other manufacturers through our wholly-owned subsidiary, NIKE IHM, Inc. and plastic injected
and metal products to other manufacturers through our wholly-owned subsidiary , BAUER Italia S.p.A.
We sell a line of dress and casual footwear, apparel and accessories for men and women under the brand
names Cole Haan®, CH, Gseries by Cole Haan, and Bragano through our wholly-owned subsidiary, Cole Haan
Holdings, Inc., headquartered in Yarmouth, Maine.
Our wholly-owned subsidiary, Bauer NIKE Hockey Inc., headquartered in Greenland, New Hampshire,
manufactures and distributes ice skates, skate blades, in-line roller skates, protective gear, hockey sticks, and
hockey jerseys, licensed apparel and accessories under the Bauer®and NIKE®brand names. Bauer also offers a
full selection of products for street and roller hockey.
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