Nike 2013 Annual Report Download - page 69

PART II
Revenues by Major Product Lines. Revenues to external customers for NIKE Brand products are attributable to sales of footwear, apparel and equipment. Other
revenues to external customers primarily include external sales by Converse, Hurley, and NIKE Golf.
Year Ended May 31,
(In millions) 2013 2012 2011
Footwear $ 14,539 $ 13,428 $ 11,519
Apparel 6,820 6,336 5,516
Equipment 1,405 1,204 1,022
Other 2,549 2,363 2,060
TOTAL NIKE CONSOLIDATED REVENUES $ 25,313 $ 23,331 $ 20,117
Revenues and Long-Lived Assets by
Geographic Area
Geographical area information is similar to what is reflected above under
operating segments with the exception of the Other activity, which has been
allocated to the geographical areas based on the location where the sales
originated. Revenues derived in the United States were $11,385 million,
$9,793 million, and $8,467 million for the years ended May 31, 2013, 2012,
and 2011, respectively. The Company’s largest concentrations of long-lived
assets primarily consist of the Company’s world headquarters and
distribution facilities in the United States and distribution facilities in Japan,
Belgium and China. Long-lived assets attributable to operations in the
United States, which are primarily composed of net property, plant &
equipment, were $1,424 million, $1,204 million, and $1,056 million at May 31,
2013, 2012, and 2011, respectively. Long-lived assets attributable to
operations in Japan were $270 million, $360 million, and $361 million at
May 31, 2013, 2012, and 2011, respectively. Long-lived assets attributable to
operations in Belgium were $157 million, $164 million, and $182 million at
May 31, 2013, 2012, and 2011, respectively. Long-lived assets attributable to
operations in China were $212 million, $188 million, and $175 million at
May 31, 2013, 2012, and 2011, respectively.
Major Customers
No customer accounted for 10% or more of the Company’s net revenues
during the years ended May 31, 2013, 2012, and 2011.
ITEM 9. Changes In and Disagreements with
Accountants on Accounting and Financial
Disclosure
There has been no change of accountants nor any disagreements with accountants on any matter of accounting principles or practices or financial statement
disclosure required to be reported under this Item.
ITEM 9A. Controls and Procedures
We maintain disclosure controls and procedures that are designed to ensure
information required to be disclosed in our Exchange Act reports is recorded,
processed, summarized and reported within the time periods specified in the
Securities and Exchange Commission’s rules and forms and that such
information is accumulated and communicated to our management,
including our Chief Executive Officer and Chief Financial Officer, as
appropriate, to allow for timely decisions regarding required disclosure. In
designing and evaluating the disclosure controls and procedures,
management recognizes that any controls and procedures, no matter how
well designed and operated, can provide only reasonable assurance of
achieving the desired control objectives, and management is required to
apply its judgment in evaluating the cost-benefit relationship of possible
controls and procedures.
We carry out a variety of on-going procedures, under the supervision and with
the participation of our management, including our Chief Executive Officer
and Chief Financial Officer, to evaluate the effectiveness of the design and
operation of our disclosure controls and procedures. Based on the foregoing,
our Chief Executive Officer and Chief Financial Officer concluded that our
disclosure controls and procedures were effective at the reasonable
assurance level as of May 31, 2013.
“Management’s Annual Report on Internal Control Over Financial Reporting”
is included in Item 8 of this Report.
There has been no change in our internal control over financial reporting
during our most recent fiscal quarter that has materially affected, or is
reasonable likely to materially affect, our internal control over financial
reporting.
ITEM 9B. Other Information
No disclosure is required under this Item.
114