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PART II
NOTE 3 — Property, Plant and Equipment
Property, plant and equipment included the following:
As of May 31,
(In millions) 2012 2011
Land $ 252 $ 237
Buildings 1,158 1,124
Machinery, equipment and internal-use software 2,755 2,487
Leasehold improvements 968 931
Construction in process 111 127
Total property, plant and equipment, gross 5,244 4,906
Less accumulated depreciation 2,965 2,791
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET $ 2,279 $ 2,115
Capitalized interest was not material for the years ended May 31, 2012, 2011, and 2010.
NOTE 4 — Identifiable Intangible Assets and Goodwill
The following table summarizes the Company’s identifiable intangible asset balances as of May 31, 2012 and 2011:
May 31, 2012 May 31, 2011
(In millions)
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Amortized intangible assets:
Patents $ 99 $ (29) $ 70 $ 80 $ (24) $ 56
Trademarks 41 (26) 15 44 (25) 19
Other 94 (30) 64 47 (22) 25
TOTAL $ 234 $ (85) $ 149 $ 171 $ (71) $ 100
Unamortized intangible assets —
Trademarks 386 387
IDENTIFIABLE INTANGIBLE
ASSETS, NET $ 535 $ 487
The effect of foreign exchange fluctuations for the year ended May 31, 2012
decreased unamortized intangible assets by approximately $2 million, resulting
from the strengthening of the U.S. Dollar in relation to the British Pound.
Amortization expense, which is included in selling and administrative expense,
was $22 million, $16 million, and $14 million for the years ended May 31,
2012, 2011, and 2010, respectively. The estimated amortization expense for
intangible assets subject to amortization for each of the years ending May 31,
2013 through May 31, 2017 are as follows: 2013: $21 million; 2014: $19
million; 2015: $15 million; 2016: $14 million; 2017: $13 million.
All goodwill balances are included in the Company’s “Other” category for segment reporting purposes. The following table summarizes the Company’s goodwill
balance as of May 31, 2012 and 2011:
(In millions) Goodwill
Accumulated
Impairment Goodwill, net
May 31, 2010 $ 387 $ (199) $ 188
Umbro France(1) 10 — 10
Other(2) 7— 7
May 31, 2011 404 (199) 205
Other(2) (4) — (4)
MAY 31, 2012 $ 400 $ (199) $ 201
(1) In March 2011, Umbro acquired the remaining 51% of the exclusive licensee and distributor of the Umbro brand in France for approximately $15 million.
(2) Other consists of foreign currency translation adjustments on Umbro goodwill.
NIKE, INC. Š2012 Form 10-K 51