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NIKE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Amortization expense of identifiable assets with definite lives, which is included in selling and
administrative expense, was $3.6 million, $2.6 million and $2.5 million for the years ended May 31, 2003, 2002,
and 2001, respectively. The amortization expense of indefinite-lived intangible assets and goodwill, which was
included in other income/expense, net, was zero, $13.1 million and $13.1 million for the years ended May 31,
2003, 2002, and 2001 respectively. The estimated amortization expense for intangible assets subject to
amortization for each of the succeeding years ending May 31, 2004 through May 31, 2008 is as follows: 2004:
$3.0 million; 2005: $2.8 million; 2006: $2.8 million; 2007: $2.2 million; 2008: $2.1 million.
The results for the years ended May 31, 2002 and 2001 do not reflect the provisions of FAS 142. The
reported net income before cumulative effect of accounting change was $668.3 million and $589.7 million for the
years ended May 31, 2002 and 2001, respectively. Had the Company adopted FAS 142 on June 1, 2000, for the
year ended May 31, 2001 we would have recorded net income before cumulative effect of accounting change of
$602.8 million as a result of not recording $8.6 million in goodwill amortization and $4.5 million in trademark
amortization. For the year ended May 31, 2002, net income before cumulative effect of accounting change would
have been $681.4 million as a result of not recording $8.6 million in goodwill amortization and $4.5 million in
trademark amortization. Basic and diluted earnings per common share before accounting change would have
increased $0.05 in both years ended May 31, 2002 and 2001.
Note 5 — Accrued Liabilities
Accrued liabilities include the following:
May 31,
2003 2002
(In millions)
Fair value of foreign currency exchange contracts, options, and cross-currency
swaps ......................................................... $ 313.1 $123.8
Accrued compensation and benefits .................................... 254.9 215.2
Accrued tax ...................................................... 79.0 47.2
Accrued endorser compensation ...................................... 70.2 66.5
Other............................................................ 337.0 312.6
$1,054.2 $765.3
Note 6 — Short-Term Borrowings and Credit Lines:
Commercial paper outstanding, notes payable to banks, and interest-bearing accounts payable to Nissho
Iwai American Corporation (NIAC) are summarized below:
May 31,
2003 2002
Borrowings
Interest
Rate Borrowings
Interest
Rate
(In millions) (In millions)
Notes payable and commercial paper:
U.S. operations ............................. $ 2.3 4.25% $339.2 1.82%
Non-U.S. operations ......................... 73.1 5.26% 86.0 6.61%
$75.4 $425.2
NIAC ...................................... 49.6 2.06% 36.3 2.62%
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