ACCOUNT 701

Nike, Inc.
Consolidated Statements of Income
For the Years Endeded May 31,

2018 2017 2016

Revenue $ 36,397 $ 31,350 $ 32,376
Cost of sales 20,441 19,038 17,405
Gross profit 15,956 12,312 14,971
Demand creation expense 3,577 3,341 3,278
Operating overhead expense 7,934 7,222 7,191
Total selling and administrative expens 11,511 10,563 10,469
Interest expense (income), net 54 59 19
Other expense (income), net 66 (196) (140)
Income before income taxes 4,325 1,886 4,623
Income tax expense 2,392 646 863
NET INCOME $ 1,933 $ 1,240 $ 3,760

Nike, Inc.
VERTICAL ANALYSIS of Consolidated Statements of Income
For the Years Endeded May 31,
REMEMBER: # DIVIDED BY REVENUE
2018 2017 2016
Revenue
Cost of sales
Gross profit
Demand creation expense
Operating overhead expense
Total selling and administrative expense
Interest expense (income), net
Other expense (income), net
Income before income taxes
Income tax expense
NET INCOME

Nike, Inc. Nike, Inc.

HORIZONTAL ANALYSIS of Consolidated Statements of Income ($ Change) HORIZONTAL ANALYSIS of Consolidated Statements of Income (% Change)
For the Years Endeded May 31, For the Years Endeded May 31,

2017 --> 2018 2016 --> 2017 2017 --> 2018 2016 --> 2017
Revenue Revenue
Cost of sales Cost of sales
Gross profit Gross profit
Demand creation expense Demand creation expense
Operating overhead expense Operating overhead expense
Total selling and administrative expense Total selling and administrative expense
Interest expense (income), net Interest expense (income), net
Other expense (income), net Other expense (income), net
Income before income taxes Income before income taxes
Income tax expense Income tax expense
NET INCOME NET INCOME

NIKE Example (IS) - VH Blank

ACCOUNT 701

Nike, Inc.
Consolidated Statements of Income
For the Years Endeded May 31,

2018 2017 2016

Revenue $ 36,397 $ 31,350 $ 32,376
Cost of sales 20,441 19,038 17,405
Gross profit 15,956 12,312 14,971
Demand creation expense 3,577 3,341 3,278
Operating overhead expense 7,934 7,222 7,191
Total selling and administrative expen 11,511 10,563 10,469
Interest expense (income), net 54 59 19
Other expense (income), net 66 (196) (140)
Income before income taxes 4,325 1,886 4,623
Income tax expense 2,392 646 863
NET INCOME $ 1,933 $ 1,240 $ 3,760

Nike, Inc.
VERTICAL ANALYSIS of Consolidated Statements of Income
For the Years Endeded May 31,

2018 2017 2016

Revenue 100.00% 100.00% 100.00%
Cost of sales 56.16% 60.73% 53.76%
Gross profit 43.84% 39.27% 46.24%
Demand creation expense 9.83% 10.66% 10.12%
Operating overhead expense 21.80% 23.04% 22.21%
Total selling and administrative expen 31.63% 33.69% 32.34%
Interest expense (income), net 0.15% 0.19% 0.06%
Other expense (income), net 0.18% -0.63% -0.43%
Income before income taxes 11.88% 6.02% 14.28%
Income tax expense 6.57% 2.06% 2.67%
NET INCOME 5.31% 3.96% 11.61%

Nike, Inc. Nike, Inc.

HORIZONTAL ANALYSIS of Consolidated Statements of Income ($ Change) HORIZONTAL ANALYSIS of Consolidated Statements of Income (% Change)
For the Years Endeded May 31, For the Years Endeded May 31,

2017 --> 2018 2016 --> 2017 2017 --> 2018 2016 --> 2017
Revenue $ 5,047 $ (1,026) Revenue 16.10% -3.17%
Cost of sales 1,403 1,633 Cost of sales 7.37% 9.38%
Gross profit 3,644 (2,659) Gross profit 29.60% -17.76%
Demand creation expense 236 63 Demand creation expense 7.06% 1.92%
Operating overhead expense 712 31 Operating overhead expense 9.86% 0.43%
Total selling and administrative expen 948 94 Total selling and administrative expense 8.97% 0.90%
Interest expense (income), net (5) 40 Interest expense (income), net -8.47% 210.53%
Other expense (income), net 262 (56) Other expense (income), net -133.67% 40.00%
Income before income taxes 2,439 (2,737) Income before income taxes 129.32% -59.20%
Income tax expense 1,746 (217) Income tax expense 270.28% -25.14%
NET INCOME $ 693 $ (2,520) NET INCOME 55.89% -67.02%

NIKE Example (IS) - VH Complete

ACCOUNT 701

NIKE CONSOLIDATED BALANCE SHEETS

ASSETS 5/31/2018 5/31/2017

Current Assets
Cash and equivalents $ 4,249 $ 3,808
Short-term investments 996 2,371
Accounts receivable, net 3,498 3,677
Inventories 5,261 5,055
Prepaid expenses and other current assets 1,130 1,150
Total current assets 15,134 16,061
Property, plant and equipment, net 4,454 3,989
Identifiable intangible assets, net 285 283
Goodwill 154 139
Deferred income taxes and other assets 2,509 2,787
TOTAL ASSETS $ 22,536 $ 23,259
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt $ 6 $ 6
Notes payable 336 325
Accounts payable 2,279 2,048
Accrued liabilities 3,269 3,011
Income taxes payable 150 84
Total current liabilities 6,040 5,474
Long-term debt 3,468 3,471
Deferred income taxes and other liabilities 3,216 1,907
Commitments and contingencies - -
Redeemable preferred stock - -
Shareholders equity
Common stock at stated value - -
Class A convertible - -
Class B 3 3
Capital in excess of stated value 6,384 5,710
Accumulated other comprehensive loss (92) (213)
Retained earnings 3,517 6,907
Total shareholders' equity 9,812 12,407
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $ 22,536 $ 23,259

NIKE CONSOLIDATED BALANCE SHEETS

VERTICAL ANALYSIS HORIZONTAL ($ CHANGE) HORIZONTAL (% CHANGE)
ASSETS 5/31/2018 5/31/2017 5/31/17 --> 5/31/18 5/31/17 --> 5/31/18
Current Assets
Cash and equivalents
Short-term investments
Accounts receivable, net
Inventories
Prepaid expenses and other current assets
Total current assets
Property, plant and equipment, net
Identifiable intangible assets, net
Goodwill
Deferred income taxes and other assets
TOTAL ASSETS
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt
Notes payable
Accounts payable
Accrued liabilities
Income taxes payable
Total current liabilities
Long-term debt
Deferred income taxes and other liabilities
Commitments and contingencies
Redeemable preferred stock
Shareholders equity
Common stock at stated value
Class A convertible
Class B
Capital in excess of stated value
Accumulated other comprehensive loss
Retained earnings
Total shareholders' equity
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY

Nike Example (BS) - VH Blank

ACCOUNT 701

NIKE CONSOLIDATED BALANCE SHEETS

ASSETS 5/31/2018 5/31/2017

Current Assets
Cash and equivalents $ 4,249 $ 3,808
Short-term investments 996 2,371
Accounts receivable, net 3,498 3,677
Inventories 5,261 5,055
Prepaid expenses and other current assets 1,130 1,150
Total current assets 15,134 16,061
Property, plant and equipment, net 4,454 3,989
Identifiable intangible assets, net 285 283
Goodwill 154 139
Deferred income taxes and other assets 2,509 2,787
TOTAL ASSETS $ 22,536 $ 23,259
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt $ 6 $ 6
Notes payable 336 325
Accounts payable 2,279 2,048
Accrued liabilities 3,269 3,011
Income taxes payable 150 84
Total current liabilities 6,040 5,474
Long-term debt 3,468 3,471
Deferred income taxes and other liabilities 3,216 1,907
Commitments and contingencies - -
Redeemable preferred stock - -
Shareholders equity
Common stock at stated value - -
Class A convertible - -
Class B 3 3
Capital in excess of stated value 6,384 5,710
Accumulated other comprehensive loss (92) (213)
Retained earnings 3,517 6,907
Total shareholders' equity 9,812 12,407
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $ 22,536 $ 23,259

NIKE CONSOLIDATED BALANCE SHEETS

VERTICAL ANALYSIS HORIZONTAL ($ CHANGE) HORIZONTAL (% CHANGE)
ASSETS 5/31/2018 5/31/2017 5/31/17 --> 5/31/18 5/31/17 --> 5/31/18
Current Assets
Cash and equivalents 18.85% 16.37% $ 441 11.58%
Short-term investments 4.42% 10.19% (1,375) -57.99%
Accounts receivable, net 15.52% 15.81% (179) -4.87%
Inventories 23.34% 21.73% 206 4.08%
Prepaid expenses and other current assets 5.01% 4.94% (20) -1.74%
Total current assets 67.15% 69.05% (927) -5.77%
Property, plant and equipment, net 19.76% 17.15% 465 11.66%
Identifiable intangible assets, net 1.26% 1.22% 2 0.71%
Goodwill 0.68% 0.60% 15 10.79%
Deferred income taxes and other assets 11.13% 11.98% (278) -9.97%
TOTAL ASSETS 100.00% 100.00% $ (723) -3.11%
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt 0.03% 0.03% $ - 0.00%
Notes payable 1.49% 1.40% 11 3.38%
Accounts payable 10.11% 8.81% 231 11.28%
Accrued liabilities 14.51% 12.95% 258 8.57%
Income taxes payable 0.67% 0.36% 66 78.57%
Total current liabilities 26.80% 23.53% 566 10.34%
Long-term debt 15.39% 14.92% (3) -0.09%
Deferred income taxes and other liabilities 14.27% 8.20% 1,309 68.64%
Commitments and contingencies 0.00% 0.00% - N/A
Redeemable preferred stock 0.00% 0.00% - N/A
Shareholders equity 0.00% 0.00% - N/A
Common stock at stated value 0.00% 0.00% - N/A
Class A convertible 0.00% 0.00% - N/A
Class B 0.01% 0.01% - 0.00%
Capital in excess of stated value 28.33% 24.55% 674 11.80%
Accumulated other comprehensive loss -0.41% -0.92% 121 -56.81%
Retained earnings 15.61% 29.70% (3,390) -49.08%
Total shareholders' equity 43.54% 53.34% (2,595) -20.92%
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 100.00% 100.00% $ (723) -3.11%

Nike Example (BS) - VH Complete