Nike 2012 Annual Report Download - page 14

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PART I
ITEM 1B. Unresolved Staff Comments
Not applicable.
ITEM 2. Properties
The following is a summary of principal properties owned or leased by NIKE.
The NIKE World Campus, owned by NIKE and located in Beaverton, Oregon,
USA, is a 213 acre facility of 22 buildings which functions as our world
headquarters and is occupied by almost 7,000 employees engaged in
management, research, design, development, marketing, finance, and other
administrative functions from nearly all of our divisions. We also lease various
office facilities in the surrounding metropolitan area. We lease a similar, but
smaller, administrative facility in Hilversum, the Netherlands, which serves as
the headquarters for the Western Europe and Central & Eastern Europe
geographies. There are three significant distribution and customer service
facilities for NIKE Brand products, including NIKE Golf, in the United States. All
three of them are located in Memphis, Tennessee, two of which are owned
and one of which is leased. NIKE also operates and leases one facility in
Memphis, Tennessee for NIKE Brand product returns. NIKE Brand apparel
and equipment are also shipped from our Foothill Ranch, California
distribution center, which we lease. Cole Haan also operates a distribution
facility in Greenland, New Hampshire, which we lease. Smaller leased
distribution facilities for other brands and non-NIKE Brand businesses are
located in various parts of the United States. We also own or lease distribution
and customer service facilities in many parts of the world, the most significant
of which are the distribution facilities located in Tomisato, Japan, Laakdal,
Belgium, and Taicang, China, all of which we own.
We manufacture Air-Sole cushioning materials and components at NIKE IHM,
Inc. manufacturing facilities located in Beaverton, Oregon and St. Charles,
Missouri, which we own. We also manufacture and sell small amounts of
various plastic products to other manufacturers through NIKE IHM, Inc.
Aside from the principal properties described above, we lease three
production offices outside the United States, over 120 sales offices and
showrooms worldwide, and approximately 85 administrative offices
worldwide. We lease more than 800 retail stores worldwide, which consist
primarily of factory outlet stores. See “United States Market” and
“International Markets” starting on page 4 of this Report, respectively. Our
leases expire at various dates through the year 2035.
ITEM 3. Legal Proceedings
There are no material pending legal proceedings, other than ordinary routine litigation incidental to our business, to which we are a party or of which any of our
property is the subject.
ITEM 4. Mine Safety Disclosures
Not applicable.
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