NIKE, Inc.NKE
NIKE, Inc. Segments Disclosure
| NOTE 15 — SEGMENT INFORMATION | ||
The Company's reportable operating segments reflect the structure of the Company's internal organization and the financial information the Chief Operating Decision Maker ("CODM"), the Company's Chief Executive Officer, regularly reviews to assess Company performance and allocate resources. The CODM evaluates the performance of the Company's segments and allocates resources based on earnings before interest and taxes ("EBIT"), which represents Net income before Interest expense (income), net and Income tax expense in the Consolidated Statements of Income.
The Company's segments are defined as follows:
NIKE BRAND
The NIKE Brand reportable segments are: North America; Europe, Middle East & Africa ("EMEA"); Greater China; and Asia Pacific & Latin America ("APLA"), and include results for the NIKE and Jordan brands. Each NIKE Brand segment represents a geographic region operating predominantly in one industry: the design, development, marketing and selling of athletic footwear, apparel and equipment.
Global Brand Divisions is included within the NIKE Brand for presentation purposes to align with the way management views the Company. Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment. Global Brand Divisions primarily represents costs, including product creation and design expenses, that are centrally managed for the NIKE Brand, as well as costs associated with NIKE Direct global digital operations and enterprise technology.
CONVERSE
Converse operates in one industry: the design, marketing, licensing and selling of casual sneakers, apparel and accessories.
CORPORATE
Corporate consists primarily of unallocated general and administrative expenses, including expenses associated with centrally managed departments; depreciation and amortization related to the Company's headquarters; unallocated insurance, benefit and compensation programs, including stock-based compensation; and certain foreign currency gains and losses, including certain hedge gains and losses.
As part of the Company's centrally managed foreign exchange risk management program, standard foreign currency rates are assigned twice per year to each NIKE Brand entity in the Company's geographic segments and to Converse. Inventories and Cost of sales for geographic segments and Converse reflect the use of these standard rates to recognize non-functional currency product purchases in the entity's functional currency. Differences between these standard rates and actual market rates are included in Corporate, together with foreign currency hedge gains and losses and other conversion gains and losses.
| YEAR ENDED MAY 31, 2025 | |||||||||||||||||||||||||||||
(Dollars in millions) | NORTH AMERICA | EUROPE, MIDDLE EAST & AFRICA | GREATER CHINA | ASIA PACIFIC & LATIN AMERICA | GLOBAL BRAND DIVISIONS | TOTAL NIKE BRAND | CONVERSE | CORPORATE | TOTAL NIKE, INC. | ||||||||||||||||||||
Revenues | $ | 19,572 | $ | 12,257 | $ | 6,586 | $ | 6,251 | $ | 48 | $ | 44,714 | $ | 1,692 | $ | (97) | $ | 46,309 | |||||||||||
Cost of Sales | 11,056 | 6,967 | 3,558 | 3,502 | 634 | 25,717 | 868 | (66) | 26,519 | ||||||||||||||||||||
Gross profit | 8,516 | 5,290 | 3,028 | 2,749 | (586) | 18,997 | 824 | (31) | 19,790 | ||||||||||||||||||||
Demand creation expense | 1,633 | 1,222 | 529 | 421 | 716 | 4,521 | 156 | 12 | 4,689 | ||||||||||||||||||||
Operating overhead expense | 2,150 | 1,479 | 973 | 804 | 3,401 | 8,807 | 430 | 2,162 | 11,399 | ||||||||||||||||||||
Total selling and administrative expense | 3,783 | 2,701 | 1,502 | 1,225 | 4,117 | 13,328 | 586 | 2,174 | 16,088 | ||||||||||||||||||||
Other segment items(1) | (2) | 14 | (76) | (3) | (4) | (71) | (2) | (3) | (76) | ||||||||||||||||||||
EARNINGS (LOSS) BEFORE INTEREST AND TAXES | $ | 4,735 | $ | 2,575 | $ | 1,602 | $ | 1,527 | $ | (4,699) | $ | 5,740 | $ | 240 | $ | (2,202) | |||||||||||||
Interest expense (income), net | (107) | ||||||||||||||||||||||||||||
TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES | $ | 3,885 | |||||||||||||||||||||||||||
Supplemental information: | |||||||||||||||||||||||||||||
Depreciation and amortization(2) | $ | 157 | 143 | 49 | 50 | 237 | 636 | 14 | 125 | $ | 775 | ||||||||||||||||||
Inventories | $ | 3,198 | 2,042 | 951 | 905 | 148 | 7,244 | 272 | (27) | $ | 7,489 | ||||||||||||||||||
(1)At the NIKE Brand segments and Converse, other segment items consist of unusual or non-operating transactions that occur outside the normal course of business. At Corporate, this also includes foreign currency conversion gains and losses from the remeasurement of monetary assets and liabilities denominated in non-functional currencies and the impact of certain foreign currency derivative instruments.
(2)The amounts of depreciation and amortization disclosed by segment are included within Cost of sales and Operating overhead expense, as applicable.
| YEAR ENDED MAY 31, 2024 | |||||||||||||||||||||||||||||
(Dollars in millions) | NORTH AMERICA | EUROPE, MIDDLE EAST & AFRICA | GREATER CHINA | ASIA PACIFIC & LATIN AMERICA | GLOBAL BRAND DIVISIONS | TOTAL NIKE BRAND | CONVERSE | CORPORATE | TOTAL NIKE, INC. | ||||||||||||||||||||
Revenues | $ | 21,396 | $ | 13,607 | $ | 7,545 | $ | 6,729 | $ | 45 | $ | 49,322 | $ | 2,082 | $ | (42) | $ | 51,362 | |||||||||||
Cost of Sales | 11,899 | 7,589 | 3,761 | 3,639 | 602 | 27,490 | 989 | (4) | 28,475 | ||||||||||||||||||||
Gross profit | 9,497 | 6,018 | 3,784 | 3,090 | (557) | 21,832 | 1,093 | (38) | 22,887 | ||||||||||||||||||||
Demand creation expense | 1,495 | 1,114 | 519 | 407 | 596 | 4,131 | 140 | 14 | 4,285 | ||||||||||||||||||||
Operating overhead expense | 2,189 | 1,517 | 1,019 | 801 | 3,534 | 9,060 | 485 | 2,746 | 12,291 | ||||||||||||||||||||
Total selling and administrative expense | 3,684 | 2,631 | 1,538 | 1,208 | 4,130 | 13,191 | 625 | 2,760 | 16,576 | ||||||||||||||||||||
Other segment items(1) | (9) | (1) | (63) | (3) | 33 | (43) | (6) | (179) | (228) | ||||||||||||||||||||
EARNINGS (LOSS) BEFORE INTEREST AND TAXES | $ | 5,822 | $ | 3,388 | $ | 2,309 | $ | 1,885 | $ | (4,720) | $ | 8,684 | $ | 474 | $ | (2,619) | |||||||||||||
Interest expense (income), net | (161) | ||||||||||||||||||||||||||||
TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES | $ | 6,700 | |||||||||||||||||||||||||||
Supplemental information: | |||||||||||||||||||||||||||||
Depreciation and amortization(2) | $ | 152 | 146 | 56 | 51 | 236 | 641 | 17 | 138 | $ | 796 | ||||||||||||||||||
| Inventories | $ | 3,134 | 2,028 | 1,070 | 810 | 166 | 7,208 | 296 | 15 | $ | 7,519 | ||||||||||||||||||
(1)At the NIKE Brand segments and Converse, other segment items consist of unusual or non-operating transactions that occur outside the normal course of business. At Corporate, this also includes foreign currency conversion gains and losses from the remeasurement of monetary assets and liabilities denominated in non-functional currencies and the impact of certain foreign currency derivative instruments.
(2)The amounts of depreciation and amortization disclosed by segment are included within Cost of sales and Operating overhead expense, as applicable.
| YEAR ENDED MAY 31, 2023 | |||||||||||||||||||||||||||||
| (Dollars in millions) | NORTH AMERICA | EUROPE, MIDDLE EAST & AFRICA | GREATER CHINA | ASIA PACIFIC & LATIN AMERICA | GLOBAL BRAND DIVISIONS | TOTAL NIKE BRAND | CONVERSE | CORPORATE | TOTAL NIKE, INC. | ||||||||||||||||||||
| Revenues | $ | 21,608 | $ | 13,418 | $ | 7,248 | $ | 6,431 | $ | 58 | $ | 48,763 | $ | 2,427 | $ | 27 | $ | 51,217 | |||||||||||
| Cost of Sales | 12,497 | 7,340 | 3,552 | 3,337 | 516 | 27,242 | 1,121 | 562 | 28,925 | ||||||||||||||||||||
| Gross profit | 9,111 | 6,078 | 3,696 | 3,094 | (458) | 21,521 | 1,306 | (535) | 22,292 | ||||||||||||||||||||
| Demand creation expense | 1,455 | 1,050 | 499 | 373 | 511 | 3,888 | 138 | 34 | 4,060 | ||||||||||||||||||||
| Operating overhead expense | 2,207 | 1,500 | 1,012 | 789 | 3,881 | 9,389 | 499 | 2,429 | 12,317 | ||||||||||||||||||||
| Total selling and administrative expense | 3,662 | 2,550 | 1,511 | 1,162 | 4,392 | 13,277 | 637 | 2,463 | 16,377 | ||||||||||||||||||||
Other segment items(1) | (5) | (3) | (98) | — | (9) | (115) | (7) | (158) | (280) | ||||||||||||||||||||
EARNINGS (LOSS) BEFORE INTEREST AND TAXES | $ | 5,454 | $ | 3,531 | $ | 2,283 | $ | 1,932 | $ | (4,841) | $ | 8,359 | $ | 676 | $ | (2,840) | |||||||||||||
| Interest expense (income), net | (6) | ||||||||||||||||||||||||||||
| TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES | $ | 6,201 | |||||||||||||||||||||||||||
| Supplemental information: | |||||||||||||||||||||||||||||
Depreciation and amortization(2) | $ | 128 | 120 | 54 | 42 | 211 | 555 | 17 | 131 | $ | 703 | ||||||||||||||||||
Inventories | $ | 3,806 | 2,167 | 973 | 894 | 232 | 8,072 | 305 | 77 | $ | 8,454 | ||||||||||||||||||
(1)At the NIKE Brand segments and Converse, other segment items consist of unusual or non-operating transactions that occur outside the normal course of business. At Corporate, this also includes foreign currency conversion gains and losses from the remeasurement of monetary assets and liabilities denominated in non-functional currencies and the impact of certain foreign currency derivative instruments.
(2)The amounts of depreciation and amortization by segment are included within Cost of sales and Operating overhead expense, as applicable.
REVENUES AND LONG-LIVED ASSETS BY GEOGRAPHIC AREA
After allocation of revenues for Global Brand Divisions, Converse and Corporate to geographical areas based on the location where the sales originated, revenues by geographical area are similar to that as reported above for the NIKE Brand operating segments with the exception of the United States. Revenues derived in the United States were $19,725 million, $21,551 million and $22,007 million for the fiscal years ended May 31, 2025, 2024 and 2023, respectively.
The Company's largest concentrations of long-lived assets primarily consist of the Company's corporate headquarters, retail locations and distribution facilities in the United States, China and the United Kingdom, as well as distribution facilities in Belgium. Long-lived assets attributable to operations in these countries, which consist of property, plant and equipment, net and operating lease ROU assets, net, were as follows:
| MAY 31, | ||||||||
(Dollars in millions) | 2025 | 2024 | ||||||
| United States | $ | 4,467 | $ | 4,837 | ||||
| Belgium | 774 | 757 | ||||||
| China | 488 | 501 | ||||||
United Kingdom | 422 | 324 | ||||||
Other | 1,389 | 1,299 | ||||||
TOTAL LONG-LIVED ASSETS | $ | 7,540 | $ | 7,718 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jul 17, 2025 | Showing above |
| 2024 | Jul 25, 2024 | |
| 2023 | Jul 20, 2023 | |
| 2022 | Jul 21, 2022 | |
| 2021 | Jul 20, 2021 | |
| 2020 | Jul 24, 2020 | |
| 2019 | Jul 23, 2019 | |
| 2018 | Jul 25, 2018 | |
| 2017 | Jul 20, 2017 | |
| 2016 | Jul 21, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.