Question: What is Nike's Financial Leverage Ratio for fiscal year 2018?

To calculate Nike's Financial Leverage Ratio for 2018, we use the formula:
Financial Leverage Ratio = Total Debt / Shareholders’ Equity

Data from the document:

Total Debt (2018) = $3,468 million
Shareholders’ Equity (2018) = $9,812 million
Calculation:
Financial Leverage Ratio = 3,468 / 9,812 ≈ 0.35

Thus, Nike's Financial Leverage Ratio for 2018 is approximately 0.35.

ITEM 8. Financial Statements and Supplementary Data

NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46:

NIKE, Inc. Consolidated Balance Sheets

 	 	May 31,

(In millions)	 	2018	 	2017

ASSETS

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 (Note 15)

Redeemable preferred stock	 	-		 	-

Shareholders' equity:

Common stock at stated value:

Class A convertible - 329 and 329 shares outstanding	 	-		 	-

Class B - 1,272 and 1,314 shares outstanding	 	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

The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.

46


Question: What is Nike's Accounts Payable Turnover Ratio for fiscal year 2018?

To calculate Nike's Accounts Payable Turnover Ratio for fiscal year 2018, we use the formula:
Accounts Payable Turnover Ratio = Cost of Goods Sold (COGS) / Average Accounts Payable

Cost of Goods Sold (COGS) for 2018 = $20,441 million
Accounts Payable at the end of 2018 = $2,279 million
Accounts Payable at the end of 2017 = $2,048 million
Calculate Average Accounts Payable:
Average Accounts Payable = (Accounts Payable at 2018 + Accounts Payable at 2017) / 2
Average Accounts Payable = (2,279 + 2,048) / 2 = $2,163.5 million

Calculate Accounts Payable Turnover Ratio:
Accounts Payable Turnover Ratio = 20,441 / 2,163.5 ≈ 9.45

Thus, Nike's Accounts Payable Turnover Ratio for fiscal year 2018 is approximately 9.45.

ITEM 8. Financial Statements and Supplementary Data

NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 44:

NIKE, Inc. Consolidated Statements of Income

 	 	Year Ended May 31,

(In millions, except per share data)	 	2018	 	2017	 	2016

Revenues	 	$	36,397		 	$	34,350		 	$	32,376

Cost of sales	 	20,441		 	19,038		 	17,405

Gross profit	 	15,956		 	15,312		 	14,971

Demand creation expense	 	3,577		 	3,341		 	3,278

Operating overhead expense	 	7,934		 	7,222		 	7,191

Total selling and administrative expense	 	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		 	4,886		 	4,623

Income tax expense	 	2,392		 	646		 	863

NET INCOME	 	$	1,933		 	$	4,240		 	$	3,760

Earnings per common share:

Basic	 	$	1.19		 	$	2.56		 	$	2.21

Diluted	 	$	1.17		 	$	2.51		 	$	2.16

Dividends declared per common share	 	$	0.78		 	$	0.70		 	$	0.62

The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.

44

, NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46:

NIKE, Inc. Consolidated Balance Sheets

 	 	May 31,

(In millions)	 	2018	 	2017

ASSETS

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 (Note 15)

Redeemable preferred stock	 	-		 	-

Shareholders' equity:

Common stock at stated value:

Class A convertible - 329 and 329 shares outstanding	 	-		 	-

Class B - 1,272 and 1,314 shares outstanding	 	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

The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.

46

NIKE, Inc. Consolidated Statements of Income

 	 	Year Ended May 31,

(In millions, except per share data)	 	2018	 	2017	 	2016

Revenues	 	$	36,397		 	$	34,350		 	$	32,376

Cost of sales	 	20,441		 	19,038		 	17,405

Gross profit	 	15,956		 	15,312		 	14,971

Demand creation expense	 	3,577		 	3,341		 	3,278

Operating overhead expense	 	7,934		 	7,222		 	7,191

Total selling and administrative expense	 	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		 	4,886		 	4,623

Income tax expense	 	2,392		 	646		 	863

NET INCOME	 	$	1,933		 	$	4,240		 	$	3,760

Earnings per common share:

Basic	 	$	1.19		 	$	2.56		 	$	2.21

Diluted	 	$	1.17		 	$	2.51		 	$	2.16

Dividends declared per common share	 	$	0.78		 	$	0.70		 	$	0.62

The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.

44

,

NIKE, Inc. Consolidated Balance Sheets

 	 	May 31,

(In millions)	 	2018	 	2017

ASSETS

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 (Note 15)

Redeemable preferred stock	 	-		 	-

Shareholders' equity:

Common stock at stated value:

Class A convertible - 329 and 329 shares outstanding	 	-		 	-

Class B - 1,272 and 1,314 shares outstanding	 	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

The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.

46


Question: How many days does it take for Nike to sell its inventory (DSI) in fiscal year 2018?

To calculate Nike's Days Sales of Inventory (DSI) for 2018:

Formula:
DSI = (Average Inventory / Cost of Goods Sold) × 365
Inventory at the end of 2018 = $5,261 million
Inventory at the end of 2017 = $5,055 million
COGS for 2018 = $20,441 million

Step 1: Calculate Average Inventory:
Average Inventory = (5,261 + 5,055) / 2 = $5,158 million

Step 2: Calculate DSI:
DSI = (5,158 / 20,441) × 365 ≈ 92.13 days

Thus, Nike's DSI for 2018 is approximately 92.13 days.

ITEM 8. Financial Statements and Supplementary Data

NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 44:

NIKE, Inc. Consolidated Statements of Income

 	 	Year Ended May 31,

(In millions, except per share data)	 	2018	 	2017	 	2016

Revenues	 	$	36,397		 	$	34,350		 	$	32,376

Cost of sales	 	20,441		 	19,038		 	17,405

Gross profit	 	15,956		 	15,312		 	14,971

Demand creation expense	 	3,577		 	3,341		 	3,278

Operating overhead expense	 	7,934		 	7,222		 	7,191

Total selling and administrative expense	 	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		 	4,886		 	4,623

Income tax expense	 	2,392		 	646		 	863

NET INCOME	 	$	1,933		 	$	4,240		 	$	3,760

Earnings per common share:

Basic	 	$	1.19		 	$	2.56		 	$	2.21

Diluted	 	$	1.17		 	$	2.51		 	$	2.16

Dividends declared per common share	 	$	0.78		 	$	0.70		 	$	0.62

The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.

44

, NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46:

NIKE, Inc. Consolidated Balance Sheets

 	 	May 31,

(In millions)	 	2018	 	2017

ASSETS

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 (Note 15)

Redeemable preferred stock	 	-		 	-

Shareholders' equity:

Common stock at stated value:

Class A convertible - 329 and 329 shares outstanding	 	-		 	-

Class B - 1,272 and 1,314 shares outstanding	 	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

The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.

46

NIKE, Inc. Consolidated Statements of Income

 	 	Year Ended May 31,

(In millions, except per share data)	 	2018	 	2017	 	2016

Revenues	 	$	36,397		 	$	34,350		 	$	32,376

Cost of sales	 	20,441		 	19,038		 	17,405

Gross profit	 	15,956		 	15,312		 	14,971

Demand creation expense	 	3,577		 	3,341		 	3,278

Operating overhead expense	 	7,934		 	7,222		 	7,191

Total selling and administrative expense	 	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		 	4,886		 	4,623

Income tax expense	 	2,392		 	646		 	863

NET INCOME	 	$	1,933		 	$	4,240		 	$	3,760

Earnings per common share:

Basic	 	$	1.19		 	$	2.56		 	$	2.21

Diluted	 	$	1.17		 	$	2.51		 	$	2.16

Dividends declared per common share	 	$	0.78		 	$	0.70		 	$	0.62

The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.

44

,

NIKE, Inc. Consolidated Balance Sheets

 	 	May 31,

(In millions)	 	2018	 	2017

ASSETS

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 (Note 15)

Redeemable preferred stock	 	-		 	-

Shareholders' equity:

Common stock at stated value:

Class A convertible - 329 and 329 shares outstanding	 	-		 	-

Class B - 1,272 and 1,314 shares outstanding	 	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

The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.

46


Question: What is Nike's Fixed Asset Turnover Ratio for fiscal year 2018?

To calculate Nike's Fixed Asset Turnover Ratio for 2018:

Formula:
Fixed Asset Turnover Ratio = Total Revenue / Average Net Fixed Assets

Data:

Total Revenue (2018) = $36,397 million
Net Fixed Assets (2018) = $4,454 million
Net Fixed Assets (2017) = $3,989 million
Step 1: Calculate Average Net Fixed Assets:
Average Net Fixed Assets = (Net Fixed Assets 2018 + Net Fixed Assets 2017) / 2
Average Net Fixed Assets = (4,454 + 3,989) / 2 = $4,221.5 million

Step 2: Calculate Fixed Asset Turnover Ratio:
Fixed Asset Turnover Ratio = 36,397 / 4,221.5 ≈ 8.63

Interpretation:
Nike's Fixed Asset Turnover Ratio for 2018 is approximately 8.63, indicating that for every dollar invested in fixed assets, Nike generated $8.63 in revenue.

ITEM 8. Financial Statements and Supplementary Data

NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 44:

NIKE, Inc. Consolidated Statements of Income

 	 	Year Ended May 31,

(In millions, except per share data)	 	2018	 	2017	 	2016

Revenues	 	$	36,397		 	$	34,350		 	$	32,376

Cost of sales	 	20,441		 	19,038		 	17,405

Gross profit	 	15,956		 	15,312		 	14,971

Demand creation expense	 	3,577		 	3,341		 	3,278

Operating overhead expense	 	7,934		 	7,222		 	7,191

Total selling and administrative expense	 	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		 	4,886		 	4,623

Income tax expense	 	2,392		 	646		 	863

NET INCOME	 	$	1,933		 	$	4,240		 	$	3,760

Earnings per common share:

Basic	 	$	1.19		 	$	2.56		 	$	2.21

Diluted	 	$	1.17		 	$	2.51		 	$	2.16

Dividends declared per common share	 	$	0.78		 	$	0.70		 	$	0.62

The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.

44

, NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46:

NIKE, Inc. Consolidated Balance Sheets

 	 	May 31,

(In millions)	 	2018	 	2017

ASSETS

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 (Note 15)

Redeemable preferred stock	 	-		 	-

Shareholders' equity:

Common stock at stated value:

Class A convertible - 329 and 329 shares outstanding	 	-		 	-

Class B - 1,272 and 1,314 shares outstanding	 	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

The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.

46

NIKE, Inc. Consolidated Statements of Income

 	 	Year Ended May 31,

(In millions, except per share data)	 	2018	 	2017	 	2016

Revenues	 	$	36,397		 	$	34,350		 	$	32,376

Cost of sales	 	20,441		 	19,038		 	17,405

Gross profit	 	15,956		 	15,312		 	14,971

Demand creation expense	 	3,577		 	3,341		 	3,278

Operating overhead expense	 	7,934		 	7,222		 	7,191

Total selling and administrative expense	 	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		 	4,886		 	4,623

Income tax expense	 	2,392		 	646		 	863

NET INCOME	 	$	1,933		 	$	4,240		 	$	3,760

Earnings per common share:

Basic	 	$	1.19		 	$	2.56		 	$	2.21

Diluted	 	$	1.17		 	$	2.51		 	$	2.16

Dividends declared per common share	 	$	0.78		 	$	0.70		 	$	0.62

The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.

44

,

NIKE, Inc. Consolidated Balance Sheets

 	 	May 31,

(In millions)	 	2018	 	2017

ASSETS

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 (Note 15)

Redeemable preferred stock	 	-		 	-

Shareholders' equity:

Common stock at stated value:

Class A convertible - 329 and 329 shares outstanding	 	-		 	-

Class B - 1,272 and 1,314 shares outstanding	 	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

The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.

46


Question: What is Nike's Gross Profit Margin for fiscal year 2018?

To calculate Nike's Gross Profit Margin for 2018:

Formula:
Gross Profit Margin = (Gross Profit / Total Revenue) × 100

Gross Profit (2018) = $15,956 million
Total Revenue (2018) = $36,397 million
Calculation:
Gross Profit Margin = (15,956 / 36,397) × 100 ≈ 43.84%

ITEM 8. Financial Statements and Supplementary Data

NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 44:

NIKE, Inc. Consolidated Statements of Income

 	 	Year Ended May 31,

(In millions, except per share data)	 	2018	 	2017	 	2016

Revenues	 	$	36,397		 	$	34,350		 	$	32,376

Cost of sales	 	20,441		 	19,038		 	17,405

Gross profit	 	15,956		 	15,312		 	14,971

Demand creation expense	 	3,577		 	3,341		 	3,278

Operating overhead expense	 	7,934		 	7,222		 	7,191

Total selling and administrative expense	 	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		 	4,886		 	4,623

Income tax expense	 	2,392		 	646		 	863

NET INCOME	 	$	1,933		 	$	4,240		 	$	3,760

Earnings per common share:

Basic	 	$	1.19		 	$	2.56		 	$	2.21

Diluted	 	$	1.17		 	$	2.51		 	$	2.16

Dividends declared per common share	 	$	0.78		 	$	0.70		 	$	0.62

The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.

44


Question: What is Nike's Interest Coverage Ratio for fiscal year 2018?

To calculate Nike's Interest Coverage Ratio for 2018:

Formula:
Interest Coverage Ratio = EBIT / Interest Expense

EBIT (2018) = $4,379 million
Interest Expense (2018) = $54 million
Calculation:
Interest Coverage Ratio = 4,379 / 54 ≈ 81.1

Interpretation:
Nike's Interest Coverage Ratio for 2018 is approximately 81.1, indicating that the company can cover its interest expenses 81.1 times with its earnings before interest and taxes (EBIT). This demonstrates a strong ability to meet interest obligations.

ITEM 8. Financial Statements and Supplementary Data

NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 71:

 	 	Year Ended May 31,

(In millions)	 	2018	 	2017	 	2016

REVENUES

North America	 	$	14,855		 	$	15,216		 	$	14,764

Europe, Middle East & Africa	 	9,242		 	7,970		 	7,568

Greater China	 	5,134		 	4,237		 	3,785

Asia Pacific & Latin America	 	5,166		 	4,737		 	4,317

Global Brand Divisions	 	88		 	73		 	73

Total NIKE Brand	 	34,485		 	32,233		 	30,507

Converse	 	1,886		 	2,042		 	1,955

Corporate	 	26		 	75		 	(86	)

TOTAL NIKE, INC. REVENUES	 	$	36,397		 	$	34,350		 	$	32,376

EARNINGS BEFORE INTEREST AND TAXES

North America	 	$	3,600		 	$	3,875		 	$	3,763

Europe, Middle East & Africa	 	1,587		 	1,507		 	1,787

Greater China	 	1,807		 	1,507		 	1,372

Asia Pacific & Latin America	 	1,189		 	980		 	1,002

Global Brand Divisions	 	(2,658	)	 	(2,677	)	 	(2,596	)

Total NIKE Brand	 	5,525		 	5,192		 	5,328

Converse	 	310		 	477		 	487

Corporate	 	(1,456	)	 	(724	)	 	(1,173	)

Total NIKE, Inc. Earnings Before Interest and Taxes	 	4,379		 	4,945		 	4,642

Interest expense (income), net	 	54		 	59		 	19

TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES	 	$	4,325		 	$	4,886		 	$	4,623

ADDITIONS TO LONG-LIVED ASSETS

North America	 	$	196		 	$	223		 	$	242

Europe, Middle East & Africa	 	240		 	173		 	234

Greater China	 	76		 	51		 	44

Asia Pacific & Latin America	 	49		 	59		 	62

Global Brand Divisions	 	286		 	278		 	258

Total NIKE Brand	 	847		 	784		 	840

Converse	 	22		 	30		 	39

Corporate	 	325		 	387		 	312

TOTAL ADDITIONS TO LONG-LIVED ASSETS	 	$	1,194		 	$	1,201		 	$	1,191

DEPRECIATION

North America	 	$	160		 	$	140		 	$	133

Europe, Middle East & Africa	 	116		 	106		 	85

Greater China	 	56		 	54		 	48

Asia Pacific & Latin America	 	55		 	54		 	42

Global Brand Divisions	 	217		 	233		 	230

Total NIKE Brand	 	604		 	587		 	538

Converse	 	33		 	28		 	27

Corporate	 	110		 	91		 	84

TOTAL DEPRECIATION	 	$	747		 	$	706		 	$	649

71


Question: What is Nike's Operating Profit Margin for fiscal year 2018?

To calculate Nike's Operating Profit Margin for 2018:

Formula:
Operating Profit Margin = (Operating Income / Total Revenue) × 100

Operating Income (EBIT, 2018) = $4,379 million
Total Revenue (2018) = $36,397 million
Operating Profit Margin = (4,379 / 36,397) × 100 ≈ 12.03%

ITEM 8. Financial Statements and Supplementary Data

NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 44:

NIKE, Inc. Consolidated Statements of Income

 	 	Year Ended May 31,

(In millions, except per share data)	 	2018	 	2017	 	2016

Revenues	 	$	36,397		 	$	34,350		 	$	32,376

Cost of sales	 	20,441		 	19,038		 	17,405

Gross profit	 	15,956		 	15,312		 	14,971

Demand creation expense	 	3,577		 	3,341		 	3,278

Operating overhead expense	 	7,934		 	7,222		 	7,191

Total selling and administrative expense	 	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		 	4,886		 	4,623

Income tax expense	 	2,392		 	646		 	863

NET INCOME	 	$	1,933		 	$	4,240		 	$	3,760

Earnings per common share:

Basic	 	$	1.19		 	$	2.56		 	$	2.21

Diluted	 	$	1.17		 	$	2.51		 	$	2.16

Dividends declared per common share	 	$	0.78		 	$	0.70		 	$	0.62

The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.

44

, NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 71:

 	 	Year Ended May 31,

(In millions)	 	2018	 	2017	 	2016

REVENUES

North America	 	$	14,855		 	$	15,216		 	$	14,764

Europe, Middle East & Africa	 	9,242		 	7,970		 	7,568

Greater China	 	5,134		 	4,237		 	3,785

Asia Pacific & Latin America	 	5,166		 	4,737		 	4,317

Global Brand Divisions	 	88		 	73		 	73

Total NIKE Brand	 	34,485		 	32,233		 	30,507

Converse	 	1,886		 	2,042		 	1,955

Corporate	 	26		 	75		 	(86	)

TOTAL NIKE, INC. REVENUES	 	$	36,397		 	$	34,350		 	$	32,376

EARNINGS BEFORE INTEREST AND TAXES

North America	 	$	3,600		 	$	3,875		 	$	3,763

Europe, Middle East & Africa	 	1,587		 	1,507		 	1,787

Greater China	 	1,807		 	1,507		 	1,372

Asia Pacific & Latin America	 	1,189		 	980		 	1,002

Global Brand Divisions	 	(2,658	)	 	(2,677	)	 	(2,596	)

Total NIKE Brand	 	5,525		 	5,192		 	5,328

Converse	 	310		 	477		 	487

Corporate	 	(1,456	)	 	(724	)	 	(1,173	)

Total NIKE, Inc. Earnings Before Interest and Taxes	 	4,379		 	4,945		 	4,642

Interest expense (income), net	 	54		 	59		 	19

TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES	 	$	4,325		 	$	4,886		 	$	4,623

ADDITIONS TO LONG-LIVED ASSETS

North America	 	$	196		 	$	223		 	$	242

Europe, Middle East & Africa	 	240		 	173		 	234

Greater China	 	76		 	51		 	44

Asia Pacific & Latin America	 	49		 	59		 	62

Global Brand Divisions	 	286		 	278		 	258

Total NIKE Brand	 	847		 	784		 	840

Converse	 	22		 	30		 	39

Corporate	 	325		 	387		 	312

TOTAL ADDITIONS TO LONG-LIVED ASSETS	 	$	1,194		 	$	1,201		 	$	1,191

DEPRECIATION

North America	 	$	160		 	$	140		 	$	133

Europe, Middle East & Africa	 	116		 	106		 	85

Greater China	 	56		 	54		 	48

Asia Pacific & Latin America	 	55		 	54		 	42

Global Brand Divisions	 	217		 	233		 	230

Total NIKE Brand	 	604		 	587		 	538

Converse	 	33		 	28		 	27

Corporate	 	110		 	91		 	84

TOTAL DEPRECIATION	 	$	747		 	$	706		 	$	649

71

NIKE, Inc. Consolidated Statements of Income

 	 	Year Ended May 31,

(In millions, except per share data)	 	2018	 	2017	 	2016

Revenues	 	$	36,397		 	$	34,350		 	$	32,376

Cost of sales	 	20,441		 	19,038		 	17,405

Gross profit	 	15,956		 	15,312		 	14,971

Demand creation expense	 	3,577		 	3,341		 	3,278

Operating overhead expense	 	7,934		 	7,222		 	7,191

Total selling and administrative expense	 	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		 	4,886		 	4,623

Income tax expense	 	2,392		 	646		 	863

NET INCOME	 	$	1,933		 	$	4,240		 	$	3,760

Earnings per common share:

Basic	 	$	1.19		 	$	2.56		 	$	2.21

Diluted	 	$	1.17		 	$	2.51		 	$	2.16

Dividends declared per common share	 	$	0.78		 	$	0.70		 	$	0.62

The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.

44

,

 	 	Year Ended May 31,

(In millions)	 	2018	 	2017	 	2016

REVENUES

North America	 	$	14,855		 	$	15,216		 	$	14,764

Europe, Middle East & Africa	 	9,242		 	7,970		 	7,568

Greater China	 	5,134		 	4,237		 	3,785

Asia Pacific & Latin America	 	5,166		 	4,737		 	4,317

Global Brand Divisions	 	88		 	73		 	73

Total NIKE Brand	 	34,485		 	32,233		 	30,507

Converse	 	1,886		 	2,042		 	1,955

Corporate	 	26		 	75		 	(86	)

TOTAL NIKE, INC. REVENUES	 	$	36,397		 	$	34,350		 	$	32,376

EARNINGS BEFORE INTEREST AND TAXES

North America	 	$	3,600		 	$	3,875		 	$	3,763

Europe, Middle East & Africa	 	1,587		 	1,507		 	1,787

Greater China	 	1,807		 	1,507		 	1,372

Asia Pacific & Latin America	 	1,189		 	980		 	1,002

Global Brand Divisions	 	(2,658	)	 	(2,677	)	 	(2,596	)

Total NIKE Brand	 	5,525		 	5,192		 	5,328

Converse	 	310		 	477		 	487

Corporate	 	(1,456	)	 	(724	)	 	(1,173	)

Total NIKE, Inc. Earnings Before Interest and Taxes	 	4,379		 	4,945		 	4,642

Interest expense (income), net	 	54		 	59		 	19

TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES	 	$	4,325		 	$	4,886		 	$	4,623

ADDITIONS TO LONG-LIVED ASSETS

North America	 	$	196		 	$	223		 	$	242

Europe, Middle East & Africa	 	240		 	173		 	234

Greater China	 	76		 	51		 	44

Asia Pacific & Latin America	 	49		 	59		 	62

Global Brand Divisions	 	286		 	278		 	258

Total NIKE Brand	 	847		 	784		 	840

Converse	 	22		 	30		 	39

Corporate	 	325		 	387		 	312

TOTAL ADDITIONS TO LONG-LIVED ASSETS	 	$	1,194		 	$	1,201		 	$	1,191

DEPRECIATION

North America	 	$	160		 	$	140		 	$	133

Europe, Middle East & Africa	 	116		 	106		 	85

Greater China	 	56		 	54		 	48

Asia Pacific & Latin America	 	55		 	54		 	42

Global Brand Divisions	 	217		 	233		 	230

Total NIKE Brand	 	604		 	587		 	538

Converse	 	33		 	28		 	27

Corporate	 	110		 	91		 	84

TOTAL DEPRECIATION	 	$	747		 	$	706		 	$	649

71


Question: What is Nike's Cash Flow to Debt Ratio for fiscal year 2018?

To calculate Nike's Cash Flow to Debt Ratio for fiscal year 2018:

Formula:
Cash Flow to Debt Ratio = Operating Cash Flow / Total Debt

Operating Cash Flow (2018) = $4,955 million
Total Debt (Long-term Debt, 2018) = $3,468 million
Calculation:
Cash Flow to Debt Ratio = 4,955 / 3,468 ≈ 1.43

Interpretation:
Nike's Cash Flow to Debt Ratio for 2018 is approximately 1.43, indicating that Nike generates $1.43 in operating cash flow for every dollar of long-term debt.

ITEM 8. Financial Statements and Supplementary Data

NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46:

NIKE, Inc. Consolidated Balance Sheets

 	 	May 31,

(In millions)	 	2018	 	2017

ASSETS

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 (Note 15)

Redeemable preferred stock	 	-		 	-

Shareholders' equity:

Common stock at stated value:

Class A convertible - 329 and 329 shares outstanding	 	-		 	-

Class B - 1,272 and 1,314 shares outstanding	 	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

The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.

46

, NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 47:

NIKE, Inc. Consolidated Statements of Cash Flows

 	 	Year Ended May 31,

(In millions)	 	2018	 	2017	 	2016

Cash provided by operations:

Net income	 	$	1,933		 	$	4,240		 	$	3,760

Adjustments to reconcile net income to net cash provided by operations:

Depreciation	 	747		 	706		 	649

Deferred income taxes	 	647		 	(273	)	 	(80	)

Stock-based compensation	 	218		 	215		 	236

Amortization and other	 	27		 	10		 	13

Net foreign currency adjustments	 	(99	)	 	(117	)	 	98

Changes in certain working capital components and other assets and liabilities:

Decrease (increase) in accounts receivable	 	187		 	(426	)	 	60

(Increase) in inventories	 	(255	)	 	(231	)	 	(590	)

Decrease (increase) in prepaid expenses and other current and non-current assets	 	35		 	(120	)	 	(161	)

Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities	 	1,515		 	(158	)	 	(586	)

Cash provided by operations	 	4,955		 	3,846		 	3,399

Cash provided (used) by investing activities:

Purchases of short-term investments	 	(4,783	)	 	(5,928	)	 	(5,367	)

Maturities of short-term investments	 	3,613		 	3,623		 	2,924

Sales of short-term investments	 	2,496		 	2,423		 	2,386

Investments in reverse repurchase agreements	 	-		 	-		 	150

Additions to property, plant and equipment	 	(1,028	)	 	(1,105	)	 	(1,143	)

Disposals of property, plant and equipment	 	3		 	13		 	10

Other investing activities	 	(25	)	 	(34	)	 	6

Cash provided (used) by investing activities	 	276		 	(1,008	)	 	(1,034	)

Cash used by financing activities:

Net proceeds from long-term debt issuance	 	-		 	1,482		 	981

Long-term debt payments, including current portion	 	(6	)	 	(44	)	 	(106	)

Increase (decrease) in notes payable	 	13		 	327		 	(67	)

Payments on capital lease and other financing obligations	 	(23	)	 	(17	)	 	(7	)

Proceeds from exercise of stock options and other stock issuances	 	733		 	489		 	507

Repurchase of common stock	 	(4,254	)	 	(3,223	)	 	(3,238	)

Dividends - common and preferred	 	(1,243	)	 	(1,133	)	 	(1,022	)

Tax payments for net share settlement of equity awards	 	(55	)	 	(29	)	 	(22	)

Cash used by financing activities	 	(4,835	)	 	(2,148	)	 	(2,974	)

Effect of exchange rate changes on cash and equivalents	 	45		 	(20	)	 	(105	)

Net increase (decrease) in cash and equivalents	 	441		 	670		 	(714	)

Cash and equivalents, beginning of year	 	3,808		 	3,138		 	3,852

CASH AND EQUIVALENTS, END OF YEAR	 	$	4,249		 	$	3,808		 	$	3,138

Supplemental disclosure of cash flow information:

Cash paid during the year for:

Interest, net of capitalized interest	 	$	125		 	$	98		 	$	70

Income taxes	 	529		 	703		 	748

Non-cash additions to property, plant and equipment	 	294		 	266		 	252

Dividends declared and not paid	 	320		 	300		 	271

The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.

47

NIKE, Inc. Consolidated Balance Sheets

 	 	May 31,

(In millions)	 	2018	 	2017

ASSETS

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 (Note 15)

Redeemable preferred stock	 	-		 	-

Shareholders' equity:

Common stock at stated value:

Class A convertible - 329 and 329 shares outstanding	 	-		 	-

Class B - 1,272 and 1,314 shares outstanding	 	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

The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.

46

,

NIKE, Inc. Consolidated Statements of Cash Flows

 	 	Year Ended May 31,

(In millions)	 	2018	 	2017	 	2016

Cash provided by operations:

Net income	 	$	1,933		 	$	4,240		 	$	3,760

Adjustments to reconcile net income to net cash provided by operations:

Depreciation	 	747		 	706		 	649

Deferred income taxes	 	647		 	(273	)	 	(80	)

Stock-based compensation	 	218		 	215		 	236

Amortization and other	 	27		 	10		 	13

Net foreign currency adjustments	 	(99	)	 	(117	)	 	98

Changes in certain working capital components and other assets and liabilities:

Decrease (increase) in accounts receivable	 	187		 	(426	)	 	60

(Increase) in inventories	 	(255	)	 	(231	)	 	(590	)

Decrease (increase) in prepaid expenses and other current and non-current assets	 	35		 	(120	)	 	(161	)

Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities	 	1,515		 	(158	)	 	(586	)

Cash provided by operations	 	4,955		 	3,846		 	3,399

Cash provided (used) by investing activities:

Purchases of short-term investments	 	(4,783	)	 	(5,928	)	 	(5,367	)

Maturities of short-term investments	 	3,613		 	3,623		 	2,924

Sales of short-term investments	 	2,496		 	2,423		 	2,386

Investments in reverse repurchase agreements	 	-		 	-		 	150

Additions to property, plant and equipment	 	(1,028	)	 	(1,105	)	 	(1,143	)

Disposals of property, plant and equipment	 	3		 	13		 	10

Other investing activities	 	(25	)	 	(34	)	 	6

Cash provided (used) by investing activities	 	276		 	(1,008	)	 	(1,034	)

Cash used by financing activities:

Net proceeds from long-term debt issuance	 	-		 	1,482		 	981

Long-term debt payments, including current portion	 	(6	)	 	(44	)	 	(106	)

Increase (decrease) in notes payable	 	13		 	327		 	(67	)

Payments on capital lease and other financing obligations	 	(23	)	 	(17	)	 	(7	)

Proceeds from exercise of stock options and other stock issuances	 	733		 	489		 	507

Repurchase of common stock	 	(4,254	)	 	(3,223	)	 	(3,238	)

Dividends - common and preferred	 	(1,243	)	 	(1,133	)	 	(1,022	)

Tax payments for net share settlement of equity awards	 	(55	)	 	(29	)	 	(22	)

Cash used by financing activities	 	(4,835	)	 	(2,148	)	 	(2,974	)

Effect of exchange rate changes on cash and equivalents	 	45		 	(20	)	 	(105	)

Net increase (decrease) in cash and equivalents	 	441		 	670		 	(714	)

Cash and equivalents, beginning of year	 	3,808		 	3,138		 	3,852

CASH AND EQUIVALENTS, END OF YEAR	 	$	4,249		 	$	3,808		 	$	3,138

Supplemental disclosure of cash flow information:

Cash paid during the year for:

Interest, net of capitalized interest	 	$	125		 	$	98		 	$	70

Income taxes	 	529		 	703		 	748

Non-cash additions to property, plant and equipment	 	294		 	266		 	252

Dividends declared and not paid	 	320		 	300		 	271

The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.

47


Question: How did Nike's total revenue in 2018 compare to 2017?

Total Revenue (2018) = $36,397 million
Total Revenue (2017) = $34,350 million
Formula:
Percentage Growth = ((Revenue 2018 - Revenue 2017) / Revenue 2017) × 100

Calculation:
Percentage Growth = ((36,397 - 34,350) / 34,350) × 100 ≈ 5.96%

ITEM 8. Financial Statements and Supplementary Data

NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 44:

NIKE, Inc. Consolidated Statements of Income

 	 	Year Ended May 31,

(In millions, except per share data)	 	2018	 	2017	 	2016

Revenues	 	$	36,397		 	$	34,350		 	$	32,376

Cost of sales	 	20,441		 	19,038		 	17,405

Gross profit	 	15,956		 	15,312		 	14,971

Demand creation expense	 	3,577		 	3,341		 	3,278

Operating overhead expense	 	7,934		 	7,222		 	7,191

Total selling and administrative expense	 	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		 	4,886		 	4,623

Income tax expense	 	2,392		 	646		 	863

NET INCOME	 	$	1,933		 	$	4,240		 	$	3,760

Earnings per common share:

Basic	 	$	1.19		 	$	2.56		 	$	2.21

Diluted	 	$	1.17		 	$	2.51		 	$	2.16

Dividends declared per common share	 	$	0.78		 	$	0.70		 	$	0.62

The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.

44


Question: What is the percentage change in total assets between 2017 and 2018?

Assets 2018: $22,536 million
Assets 2017: $23,259 million

Formula:
Percentage Change in Assets = ((Assets 2018 - Assets 2017) / Assets 2017) × 100

Calculation:
Percentage Change = ((22,536 - 23,259) / 23,259) × 100
Percentage Change = (-723 / 23,259) × 100 ≈ -3.11%

Total assets decreased by approximately 3.11% from 2017 to 2018

ITEM 8. Financial Statements and Supplementary Data

NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46:

NIKE, Inc. Consolidated Balance Sheets

 	 	May 31,

(In millions)	 	2018	 	2017

ASSETS

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 (Note 15)

Redeemable preferred stock	 	-		 	-

Shareholders' equity:

Common stock at stated value:

Class A convertible - 329 and 329 shares outstanding	 	-		 	-

Class B - 1,272 and 1,314 shares outstanding	 	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

The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.

46


Question: What is the percentage change in shareholders' equity between 2017 and 2018?

Equity 2018: $9,812 million
Equity 2017: $12,407 million

Formula:
Percentage Change in Equity = ((Equity 2018 - Equity 2017) / Equity 2017) × 100

Calculation:
Percentage Change = ((9,812 - 12,407) / 12,407) × 100
Percentage Change = (-2,595 / 12,407) × 100 ≈ -20.92%

Shareholders' equity decreased by approximately 20.92% from 2017 to 2018.

ITEM 8. Financial Statements and Supplementary Data

NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 46:

NIKE, Inc. Consolidated Balance Sheets

 	 	May 31,

(In millions)	 	2018	 	2017

ASSETS

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 (Note 15)

Redeemable preferred stock	 	-		 	-

Shareholders' equity:

Common stock at stated value:

Class A convertible - 329 and 329 shares outstanding	 	-		 	-

Class B - 1,272 and 1,314 shares outstanding	 	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

The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.

46


Question: How did the repurchase of common stock in 2018 compare to 2017?

Repurchase of Common Stock 2018: $4,254 million
Repurchase of Common Stock 2017: $3,223 million

Formula:
Percentage Change in Repurchase of Common Stock = ((Repurchase 2018 - Repurchase 2017) / Repurchase 2017) × 100

Calculation:
Percentage Change = ((4,254 - 3,223) / 3,223) × 100
Percentage Change = (1,031 / 3,223) × 100 ≈ 31.99%

Answer:
The repurchase of common stock increased by approximately 31.99% from 2017 to 2018. This indicates that Nike accelerated its share buyback program in 2018, which could be a strategy to return more value to shareholders or a signal of confidence in the company's financial stability and future performance.

ITEM 8. Financial Statements and Supplementary Data

NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 47:

NIKE, Inc. Consolidated Statements of Cash Flows

 	 	Year Ended May 31,

(In millions)	 	2018	 	2017	 	2016

Cash provided by operations:

Net income	 	$	1,933		 	$	4,240		 	$	3,760

Adjustments to reconcile net income to net cash provided by operations:

Depreciation	 	747		 	706		 	649

Deferred income taxes	 	647		 	(273	)	 	(80	)

Stock-based compensation	 	218		 	215		 	236

Amortization and other	 	27		 	10		 	13

Net foreign currency adjustments	 	(99	)	 	(117	)	 	98

Changes in certain working capital components and other assets and liabilities:

Decrease (increase) in accounts receivable	 	187		 	(426	)	 	60

(Increase) in inventories	 	(255	)	 	(231	)	 	(590	)

Decrease (increase) in prepaid expenses and other current and non-current assets	 	35		 	(120	)	 	(161	)

Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities	 	1,515		 	(158	)	 	(586	)

Cash provided by operations	 	4,955		 	3,846		 	3,399

Cash provided (used) by investing activities:

Purchases of short-term investments	 	(4,783	)	 	(5,928	)	 	(5,367	)

Maturities of short-term investments	 	3,613		 	3,623		 	2,924

Sales of short-term investments	 	2,496		 	2,423		 	2,386

Investments in reverse repurchase agreements	 	-		 	-		 	150

Additions to property, plant and equipment	 	(1,028	)	 	(1,105	)	 	(1,143	)

Disposals of property, plant and equipment	 	3		 	13		 	10

Other investing activities	 	(25	)	 	(34	)	 	6

Cash provided (used) by investing activities	 	276		 	(1,008	)	 	(1,034	)

Cash used by financing activities:

Net proceeds from long-term debt issuance	 	-		 	1,482		 	981

Long-term debt payments, including current portion	 	(6	)	 	(44	)	 	(106	)

Increase (decrease) in notes payable	 	13		 	327		 	(67	)

Payments on capital lease and other financing obligations	 	(23	)	 	(17	)	 	(7	)

Proceeds from exercise of stock options and other stock issuances	 	733		 	489		 	507

Repurchase of common stock	 	(4,254	)	 	(3,223	)	 	(3,238	)

Dividends - common and preferred	 	(1,243	)	 	(1,133	)	 	(1,022	)

Tax payments for net share settlement of equity awards	 	(55	)	 	(29	)	 	(22	)

Cash used by financing activities	 	(4,835	)	 	(2,148	)	 	(2,974	)

Effect of exchange rate changes on cash and equivalents	 	45		 	(20	)	 	(105	)

Net increase (decrease) in cash and equivalents	 	441		 	670		 	(714	)

Cash and equivalents, beginning of year	 	3,808		 	3,138		 	3,852

CASH AND EQUIVALENTS, END OF YEAR	 	$	4,249		 	$	3,808		 	$	3,138

Supplemental disclosure of cash flow information:

Cash paid during the year for:

Interest, net of capitalized interest	 	$	125		 	$	98		 	$	70

Income taxes	 	529		 	703		 	748

Non-cash additions to property, plant and equipment	 	294		 	266		 	252

Dividends declared and not paid	 	320		 	300		 	271

The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.

47


Question: What is the difference in purchases of short-term investments between 2017 and 2018?

Purchases of Short-term Investments 2018: $4,783 million
Purchases of Short-term Investments 2017: $5,928 million

Formula:
Difference in Purchases = Purchases in 2018 - Purchases in 2017

Calculation:
Difference = (4,783 - 5,928)
Difference = -1,145

Answer: Purchases of short-term investments decreased by $1,145 million from 2017 to 2018.

ITEM 8. Financial Statements and Supplementary Data

NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 47:

NIKE, Inc. Consolidated Statements of Cash Flows

 	 	Year Ended May 31,

(In millions)	 	2018	 	2017	 	2016

Cash provided by operations:

Net income	 	$	1,933		 	$	4,240		 	$	3,760

Adjustments to reconcile net income to net cash provided by operations:

Depreciation	 	747		 	706		 	649

Deferred income taxes	 	647		 	(273	)	 	(80	)

Stock-based compensation	 	218		 	215		 	236

Amortization and other	 	27		 	10		 	13

Net foreign currency adjustments	 	(99	)	 	(117	)	 	98

Changes in certain working capital components and other assets and liabilities:

Decrease (increase) in accounts receivable	 	187		 	(426	)	 	60

(Increase) in inventories	 	(255	)	 	(231	)	 	(590	)

Decrease (increase) in prepaid expenses and other current and non-current assets	 	35		 	(120	)	 	(161	)

Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities	 	1,515		 	(158	)	 	(586	)

Cash provided by operations	 	4,955		 	3,846		 	3,399

Cash provided (used) by investing activities:

Purchases of short-term investments	 	(4,783	)	 	(5,928	)	 	(5,367	)

Maturities of short-term investments	 	3,613		 	3,623		 	2,924

Sales of short-term investments	 	2,496		 	2,423		 	2,386

Investments in reverse repurchase agreements	 	-		 	-		 	150

Additions to property, plant and equipment	 	(1,028	)	 	(1,105	)	 	(1,143	)

Disposals of property, plant and equipment	 	3		 	13		 	10

Other investing activities	 	(25	)	 	(34	)	 	6

Cash provided (used) by investing activities	 	276		 	(1,008	)	 	(1,034	)

Cash used by financing activities:

Net proceeds from long-term debt issuance	 	-		 	1,482		 	981

Long-term debt payments, including current portion	 	(6	)	 	(44	)	 	(106	)

Increase (decrease) in notes payable	 	13		 	327		 	(67	)

Payments on capital lease and other financing obligations	 	(23	)	 	(17	)	 	(7	)

Proceeds from exercise of stock options and other stock issuances	 	733		 	489		 	507

Repurchase of common stock	 	(4,254	)	 	(3,223	)	 	(3,238	)

Dividends - common and preferred	 	(1,243	)	 	(1,133	)	 	(1,022	)

Tax payments for net share settlement of equity awards	 	(55	)	 	(29	)	 	(22	)

Cash used by financing activities	 	(4,835	)	 	(2,148	)	 	(2,974	)

Effect of exchange rate changes on cash and equivalents	 	45		 	(20	)	 	(105	)

Net increase (decrease) in cash and equivalents	 	441		 	670		 	(714	)

Cash and equivalents, beginning of year	 	3,808		 	3,138		 	3,852

CASH AND EQUIVALENTS, END OF YEAR	 	$	4,249		 	$	3,808		 	$	3,138

Supplemental disclosure of cash flow information:

Cash paid during the year for:

Interest, net of capitalized interest	 	$	125		 	$	98		 	$	70

Income taxes	 	529		 	703		 	748

Non-cash additions to property, plant and equipment	 	294		 	266		 	252

Dividends declared and not paid	 	320		 	300		 	271

The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.

47


Question: What is the percentage change in depreciation expense from 2017 to 2018?

Depreciation Expense 2018: $747 million
Depreciation Expense 2017: $706 million

Formula:
Percentage Change in Depreciation = ((Depreciation 2018 - Depreciation 2017) / Depreciation 2017) × 100

Calculation:
Percentage Change = ((747 - 706) / 706) × 100
Percentage Change = (41 / 706) × 100 ≈ 5.81%

Answer: Depreciation expense increased by approximately 5.81% from 2017 to 2018.

ITEM 8. Financial Statements and Supplementary Data

NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 47:

NIKE, Inc. Consolidated Statements of Cash Flows

 	 	Year Ended May 31,

(In millions)	 	2018	 	2017	 	2016

Cash provided by operations:

Net income	 	$	1,933		 	$	4,240		 	$	3,760

Adjustments to reconcile net income to net cash provided by operations:

Depreciation	 	747		 	706		 	649

Deferred income taxes	 	647		 	(273	)	 	(80	)

Stock-based compensation	 	218		 	215		 	236

Amortization and other	 	27		 	10		 	13

Net foreign currency adjustments	 	(99	)	 	(117	)	 	98

Changes in certain working capital components and other assets and liabilities:

Decrease (increase) in accounts receivable	 	187		 	(426	)	 	60

(Increase) in inventories	 	(255	)	 	(231	)	 	(590	)

Decrease (increase) in prepaid expenses and other current and non-current assets	 	35		 	(120	)	 	(161	)

Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities	 	1,515		 	(158	)	 	(586	)

Cash provided by operations	 	4,955		 	3,846		 	3,399

Cash provided (used) by investing activities:

Purchases of short-term investments	 	(4,783	)	 	(5,928	)	 	(5,367	)

Maturities of short-term investments	 	3,613		 	3,623		 	2,924

Sales of short-term investments	 	2,496		 	2,423		 	2,386

Investments in reverse repurchase agreements	 	-		 	-		 	150

Additions to property, plant and equipment	 	(1,028	)	 	(1,105	)	 	(1,143	)

Disposals of property, plant and equipment	 	3		 	13		 	10

Other investing activities	 	(25	)	 	(34	)	 	6

Cash provided (used) by investing activities	 	276		 	(1,008	)	 	(1,034	)

Cash used by financing activities:

Net proceeds from long-term debt issuance	 	-		 	1,482		 	981

Long-term debt payments, including current portion	 	(6	)	 	(44	)	 	(106	)

Increase (decrease) in notes payable	 	13		 	327		 	(67	)

Payments on capital lease and other financing obligations	 	(23	)	 	(17	)	 	(7	)

Proceeds from exercise of stock options and other stock issuances	 	733		 	489		 	507

Repurchase of common stock	 	(4,254	)	 	(3,223	)	 	(3,238	)

Dividends - common and preferred	 	(1,243	)	 	(1,133	)	 	(1,022	)

Tax payments for net share settlement of equity awards	 	(55	)	 	(29	)	 	(22	)

Cash used by financing activities	 	(4,835	)	 	(2,148	)	 	(2,974	)

Effect of exchange rate changes on cash and equivalents	 	45		 	(20	)	 	(105	)

Net increase (decrease) in cash and equivalents	 	441		 	670		 	(714	)

Cash and equivalents, beginning of year	 	3,808		 	3,138		 	3,852

CASH AND EQUIVALENTS, END OF YEAR	 	$	4,249		 	$	3,808		 	$	3,138

Supplemental disclosure of cash flow information:

Cash paid during the year for:

Interest, net of capitalized interest	 	$	125		 	$	98		 	$	70

Income taxes	 	529		 	703		 	748

Non-cash additions to property, plant and equipment	 	294		 	266		 	252

Dividends declared and not paid	 	320		 	300		 	271

The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.

47


Question: How did stock-based compensation expense change from 2017 to 2018?

Stock-Based Compensation Expense 2018: $218 million
Stock-Based Compensation Expense 2017: $215 million

Formula:
Percentage Change in Stock-Based Compensation = ((Expense 2018 - Expense 2017) / Expense 2017) × 100

Calculation:
Percentage Change = ((218 - 215) / 215) × 100
Percentage Change = (3 / 215) × 100 ≈ 1.40%

Answer:
Stock-based compensation expense increased by approximately 1.40% from 2017 to 2018. This slight increase suggests that Nike's equity compensation practices remained relatively consistent, with no significant changes to stock-based awards for employees during this period.

ITEM 8. Financial Statements and Supplementary Data

NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 47:

NIKE, Inc. Consolidated Statements of Cash Flows

 	 	Year Ended May 31,

(In millions)	 	2018	 	2017	 	2016

Cash provided by operations:

Net income	 	$	1,933		 	$	4,240		 	$	3,760

Adjustments to reconcile net income to net cash provided by operations:

Depreciation	 	747		 	706		 	649

Deferred income taxes	 	647		 	(273	)	 	(80	)

Stock-based compensation	 	218		 	215		 	236

Amortization and other	 	27		 	10		 	13

Net foreign currency adjustments	 	(99	)	 	(117	)	 	98

Changes in certain working capital components and other assets and liabilities:

Decrease (increase) in accounts receivable	 	187		 	(426	)	 	60

(Increase) in inventories	 	(255	)	 	(231	)	 	(590	)

Decrease (increase) in prepaid expenses and other current and non-current assets	 	35		 	(120	)	 	(161	)

Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities	 	1,515		 	(158	)	 	(586	)

Cash provided by operations	 	4,955		 	3,846		 	3,399

Cash provided (used) by investing activities:

Purchases of short-term investments	 	(4,783	)	 	(5,928	)	 	(5,367	)

Maturities of short-term investments	 	3,613		 	3,623		 	2,924

Sales of short-term investments	 	2,496		 	2,423		 	2,386

Investments in reverse repurchase agreements	 	-		 	-		 	150

Additions to property, plant and equipment	 	(1,028	)	 	(1,105	)	 	(1,143	)

Disposals of property, plant and equipment	 	3		 	13		 	10

Other investing activities	 	(25	)	 	(34	)	 	6

Cash provided (used) by investing activities	 	276		 	(1,008	)	 	(1,034	)

Cash used by financing activities:

Net proceeds from long-term debt issuance	 	-		 	1,482		 	981

Long-term debt payments, including current portion	 	(6	)	 	(44	)	 	(106	)

Increase (decrease) in notes payable	 	13		 	327		 	(67	)

Payments on capital lease and other financing obligations	 	(23	)	 	(17	)	 	(7	)

Proceeds from exercise of stock options and other stock issuances	 	733		 	489		 	507

Repurchase of common stock	 	(4,254	)	 	(3,223	)	 	(3,238	)

Dividends - common and preferred	 	(1,243	)	 	(1,133	)	 	(1,022	)

Tax payments for net share settlement of equity awards	 	(55	)	 	(29	)	 	(22	)

Cash used by financing activities	 	(4,835	)	 	(2,148	)	 	(2,974	)

Effect of exchange rate changes on cash and equivalents	 	45		 	(20	)	 	(105	)

Net increase (decrease) in cash and equivalents	 	441		 	670		 	(714	)

Cash and equivalents, beginning of year	 	3,808		 	3,138		 	3,852

CASH AND EQUIVALENTS, END OF YEAR	 	$	4,249		 	$	3,808		 	$	3,138

Supplemental disclosure of cash flow information:

Cash paid during the year for:

Interest, net of capitalized interest	 	$	125		 	$	98		 	$	70

Income taxes	 	529		 	703		 	748

Non-cash additions to property, plant and equipment	 	294		 	266		 	252

Dividends declared and not paid	 	320		 	300		 	271

The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.

47


Question: What is the percentage change in dividends paid on common and preferred stock from 2017 to 2018?

Dividends Paid on Common and Preferred Stock 2018: $1,265 million
Dividends Paid on Common and Preferred Stock 2017: $1,159 million

Formula:
Percentage Change in Dividends = ((Dividends 2018 - Dividends 2017) / Dividends 2017) × 100

Calculation:
Percentage Change = ((1,265 - 1,159) / 1,159) × 100
Percentage Change = (106 / 1,159) × 100 ≈ 9.14%

Answer:
Dividends paid on common and preferred stock increased by approximately 9.14% from 2017 to 2018. This reflects Nike's strategy to return more value to shareholders through a higher dividend payout, consistent with its commitment to shareholder returns.

ITEM 8. Financial Statements and Supplementary Data

NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 48:

NIKE, Inc. Consolidated Statements of Shareholders' Equity

 	 	Common Stock	 	Capital inExcessof StatedValue	 	AccumulatedOtherComprehensiveIncome	 	RetainedEarnings	 	Total

 	 	Class A	 	Class B

(In millions, except per share data)	 	Shares	 	Amount	 	Shares	 	Amount

Balance at May 31, 2015	 	355		 	$	-		 	1,357		 	$	3		 	$	4,165		 	$	1,246		 	$	7,293		 	$	12,707

Stock options exercised	 	 	 	 	 	22		 	 	 	680		 	 	 	 	 	680

Conversion to Class B Common Stock	 	(2	)	 	-		 	2		 	-		 	 	 	 	 	 	 	-

Repurchase of Class B Common Stock	 	 	 	 	 	(55	)	 	 	 	(148	)	 	 	 	(3,090	)	 	(3,238	)

Dividends on common stock ($0.62 per share) and preferred stock ($0.10 per share)	 	 	 	 	 	 	 	 	 	 	 	 	 	(1,053	)	 	(1,053	)

Issuance of shares to employees, net of shares withheld for employee taxes	 	 	 	 	 	3		 	 	 	105		 	 	 	(11	)	 	94

Stock-based compensation	 	 	 	 	 	 	 	 	 	236		 	 	 	 	 	236

Net income	 	 	 	 	 	 	 	 	 	 	 	 	 	3,760		 	3,760

Other comprehensive income (loss)	 	 	 	 	 	 	 	 	 	 	 	(928	)	 	 	 	(928	)

Balance at May 31, 2016	 	353		 	$	-		 	1,329		 	$	3		 	$	5,038		 	$	318		 	$	6,899		 	$	12,258

Stock options exercised	 	 	 	 	 	17		 	 	 	525		 	 	 	 	 	525

Conversion to Class B Common Stock	 	(24	)	 	-		 	24		 	-		 	 	 	 	 	 	 	-

Repurchase of Class B Common Stock	 	 	 	 	 	(60	)	 	 	 	(189	)	 	 	 	(3,060	)	 	(3,249	)

Dividends on common stock ($0.70 per share) and preferred stock ($0.10 per share)	 	 	 	 	 	 	 	 	 	 	 	 	 	(1,159	)	 	(1,159	)

Issuance of shares to employees, net of shares withheld for employee taxes	 	 	 	 	 	4		 	 	 	121		 	 	 	(13	)	 	108

Stock-based compensation	 	 	 	 	 	 	 	 	 	215		 	 	 	 	 	215

Net income	 	 	 	 	 	 	 	 	 	 	 	 	 	4,240		 	4,240

Other comprehensive income (loss)	 	 	 	 	 	 	 	 	 	 	 	(531	)	 	 	 	(531	)

Balance at May 31, 2017	 	329		 	$	-		 	1,314		 	$	3		 	$	5,710		 	$	(213	)	 	$	6,907		 	$	12,407

Stock options exercised	 	 	 	 	 	24		 	 	 	600		 	 	 	 	 	600

Conversion to Class B Common Stock	 	-		 	-		 	-		 	-		 	 	 	 	 	 	 	-

Repurchase of Class B Common Stock	 	 	 	 	 	(70	)	 	 	 	(254	)	 	 	 	(4,013	)	 	(4,267	)

Dividends on common stock ($0.78 per share) and preferred stock ($0.10 per share)	 	 	 	 	 	 	 	 	 	 	 	 	 	(1,265	)	 	(1,265	)

Issuance of shares to employees, net of shares withheld for employee taxes	 	 	 	 	 	4		 	 	 	110		 	 	 	(28	)	 	82

Stock-based compensation	 	 	 	 	 	 	 	 	 	218		 	 	 	 	 	218

Net income	 	 	 	 	 	 	 	 	 	 	 	 	 	1,933		 	1,933

Other comprehensive income (loss)	 	 	 	 	 	 	 	 	 	 	 	104		 	 	 	104

Reclassifications to retained earnings in accordance with ASU 2018-02	 	 	 	 	 	 	 	 	 	 	 	17		 	(17	)	 	-

Balance at May 31, 2018	 	329		 	$	-		 	1,272		 	$	3		 	$	6,384		 	$	(92	)	 	$	3,517		 	$	9,812

The accompanying Notes to the Consolidated Financial Statements are an integral part of this statement.

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