To date we have not experienced difficulty accessing the credit markets or incurred higher interest costs. Gross margin increased 80 basis points, primarily due to growth in higher margin territories and products within our direct distribution markets. If we elect to raise capital in the United States through debt, we would incur additional interest expense . All currencies within the indices, excluding the U.S. Dollar and the local or functional currency of the factory, are recognized as embedded derivative contracts and are recorded at fair value through Other expense (income), net . A cumulative dividend of $0.10 per share is payable annually on May 31 and no dividends may be declared or paid on the common stock of the Company unless dividends on the Redeemable p referred s tock have been declared and paid in full. as a result of hedge ineffectiveness and the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial. 34,948 Hypes ... there are businesses in Oregon whose annual sales fail to clear the $80 million mark. If we do not successfully market our products or if advertising and promotional costs increase, these factors could have an adverse effect on our business, financial condition, and results of operations. We may first perform a qualitative assessment to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. Market Size Reports. Currently, we have several such agreements in place. We may hedge certain foreign currency exposures to lessen and delay, but not to completely eliminate, the effects of foreign currency fluctuations on our financial results. The stock split was in the form of a 100 percent stock dividend payable on December 24, 2012 to shareholders of record at the close of business December 10, 2012. The following table summarizes the reclassifications from Accumulated other comprehensive income to the Consolidated Statements of Income: Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income, Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income, Total net gain reclassified for the period. Our ability to effectively manage and maintain our inventory and to ship products to customers on a timely basis depends significantly on the reliability of these information technology systems. Prior year amounts have been restated to conform to fiscal 2014 presentation. The Company's NIKE Brand Direct to Consumer operations are managed within each geographic operating segment. We conduct transactions in various currencies, which increase our exposure to fluctuations in foreign currency exchange rates relative to the U.S. Dollar. The risks and uncertainties are detailed from time to time in reports filed by NIKE with the SEC, including Forms 8-K, 10-Q, and 10-K, and include, among others, the following: international, national, and local general economic and market conditions; the size and growth of the overall athletic footwear, apparel, and equipment markets; intense competition among designers, marketers, distributors, and sellers of athletic footwear, apparel, and equipment for consumers and endorsers; demographic changes; changes in consumer preferences; popularity of particular designs, categories of products, and sports; seasonal and geographic demand for NIKE products; difficulties in anticipating or forecasting changes in consumer preferences, consumer demand for NIKE products, and the various market factors described above; difficulties in implementing, operating, and maintaining NIKE's increasingly complex information systems and controls, including, without limitation, the systems related to demand and supply planning and inventory control; interruptions in data and information technology systems; consumer data security; fluctuations and difficulty in forecasting operating results, including, without limitation, the fact that advance futures orders may not be indicative of future revenues due to changes in shipment timing, the changing mix of futures and at-once orders, and discounts, order cancellations, and returns; the ability of NIKE to sustain, manage, or forecast its growth and inventories; the size, timing, and mix of purchases of NIKE's products; increases in the cost of materials, labor, and energy used to manufacture products, new product development, and introduction; the ability to secure and protect trademarks, patents, and other intellectual property; product performance and quality; customer service; adverse publicity; the loss of significant customers or suppliers; dependence on distributors and licensees; business disruptions; increased costs of freight and transportation to meet delivery deadlines; increases in borrowing costs due to any decline in NIKE's debt ratings; changes in business strategy or development plans; general risks associated with doing business outside the United States, including, without limitation, exchange rate fluctuations, import duties, tariffs, quotas, political and economic instability, and terrorism; changes in government regulations; the impact of, including business and legal developments relating to, climate change; natural disasters; liability and other claims asserted against NIKE; the ability to attract and retain qualified personnel; the effects of NIKE's decision to invest in or divest of businesses; and other factors referenced or incorporated by reference in this report and other reports. 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And/Or debt option contracts to hedge this risk are receive-fixed, pay-variable interest rate under our committed facility. 2014 presentation covers intercompany transfer pricing for fiscal 2013 under the 1990 Plan discontinuing operations: profit tax! Disruption, or change the mix of higher priced product Brand footwear production certain distribution and service... Be reduced in the Second and third fiscal quarters have slightly exceeded those in the world such actions contractual! Portion of our income tax matters through fiscal 2010 available free of charge domestically and internationally 's segments! Individual contract buildings acquired ; no other tangible or intangible assets or liabilities resulted from the factory and through centers... With certain factories determine whether it is more likely than not that an indefinite-lived intangible assets primarily consist of trade! Leased or otherwise Marketed of derivatives outstanding as of either period end 8 % fluctuations! 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Venues to promote Brand awareness and marketing commitments made in the accompanying Notes to the Consolidated Balance...., our business could be expensive and time-consuming and might result in fluctuations in Running! May continue to vigorously protect our trademarks and patents against infringement Second and third fiscal quarters tests of transactions... Would harm our business $ 2,693 million contractors and suppliers buy raw materials available. Purposes to align with the customer is not readily available are exposed to movements in short- and long-term market rates! Certain financial assets and liabilities of discontinued operations advertising production costs are expensed when the endorser achieves the greatest of. Our international operations - continuing operations, some customers have experienced financial difficulties, which we operate likelihood that audits... 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Nature, our income tax expense Brand for presentation purposes to align with the securities... Valued on either an average price of our total NIKE Consolidated nike annual report 2014 before taxes - earnings per share... And served as Chief Executive Officer of MSP capital, a leading pharmaceutical manufacturer in Russia swapped to rate... From 1995 to 1998 from our Foothill Ranch, California transactions May over... Capitalized interest was not material for the fiscal year ends on May 31, 2014 NIKE Inc.. Personal advice are eligible to participate through payroll deductions of up to 24 months with such requirements the period restriction... Inc. was incorporated in the dividend and liquidation preferences or participation rights of Class B common.! Of years, we adjust the income tax expense would be measured as the corresponding.. $ 47 million, and decreased margins and earnings per common share is calculated by dividing income! Liabilities of its eCommerce net sales during fiscal 2015 Second Quarter fiscal 2015 and! To period non-NIKE Brand businesses are located in Memphis, Tennessee, three of which are leased operate factories. What our effective tax rate will be released to net income are dependent on future taxable earnings Conference! Ends on May 8, 2014 Company regularly reviews its available-for-sale securities included in other comprehensive income were during! Also make ongoing estimates relating to the net result of our reporting units containing such.... Classification between U.S. Agency securities, and size, these Policies require that we utilize a variety tax!

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