NIKE INC. REPORTS
Form 8-K is the current report companies are required to file with the Security Exchange Commission (SEC) to notify the shareholders of significant events they should know. According to the SEC Edgar’s system, Nike Inc. filed its 8-K report on June 25, 2020. Nike Inc. filed the 8-K report with SEC to bring the attention to shareholders, the financial statements and exhibits, results of operations, and the company’s financial condition. The financial report is made up of the fiscal year 2020 fourth quarter, and full-year results ended May 31, 2020, including the fourth quarter Income and Balance sheet review. Also, the details of shareholder’s returns are highlighted in the report. The exhibits include the tables of the financial statements, highlighting the company’s operations and financial condition in detail. The report provided shareholders with an update on Covid-19 on operations in all its stores, including those across the globe. Finally, Nike Inc. management notified the shareholders through the report about a conference call that will be made on June 25, 2020, at 2.00 p.m to review the fiscal fourth quarter and the full-year results.
A 10-K is a comprehensive report that the SEC requires to be filed annually by a public-traded company regarding its financial performance. Nike Inc. filed its 10-K report on July 24, 2020, showing the annual reports per the SEC Act of 1934 for the fiscal year ended May 31, 2020. The company’s net income for the period ending May 31, 2020, can be determined as follows:
- The total revenues across all stores for the current period ending May 31, 2020, were $37.4 billion.
- The cost of sales for the same period was $21.2 billion, while the gross margin was $16.2 billion, derived from total revenues minus cost of sales.
- The selling and administrative expenses for that period were $13.1 billion, which is subtracted from the gross profit to determine the income before interest and taxes.
- Additional income from interest and other incomes was $228 million added to the income before interest and taxes.
- The income tax for the period was $348 million, which was derived from an effective tax rate of 12.1% applied to the income before taxes.
- Thereby, the net income for the current period ending May 31, 2020, was $2.5 billion, derived from income before taxes minus the income taxes.
A 10-Q is a comprehensive report of a company’s quarterly performance required to be presented by all public companies to SEC. The filing must be submitted 40 – 45 days after the end of that particular company’s quarter based on the size of its public float. Nike Inc. filed its 10-Q report on April 7, 2020, which indicated the unaudited financial statements as of February 29, 2020, management discussions, and analysis of financial condition and results of operations, qualitative and quantitative disclosures about market risk, controls and procedures, and other information. The main issues addressed in this report are highlighted below:
- Covid-19 update issues were indicated and its overall effects on operations in all the stores, especially in greater China and Korea regions. It was also indicated as the leading risk factor for the business.
- Matters relating to multiple acquisitions were raised by the company to increase its market share globally.
- Announcement to shareholders was made of intention to sell the Nike brand businesses in Brazil, Argentina, Chile, and Uruguay to third party distributors in order to serve customers more personally.
- A special note regarding forward-looking statements and analyst reports highlights the company’s commitment to reporting the various changes to shareholders. The general risks which have been affecting the company have also been mentioned.
- An issue regarding unregistered sales of equity securities and use of proceeds was pointed out, where 43.3 million shares were repurchased as of February 29, 2019, as per the share repurchase program of $15 billion.
- A credit agreement with Bank of America as an administrative agent was entered into by the company, including other banks.
- The disclosure was made on market risk, which involved the issue of $6 billion in senior unsecured notes.
- The disclosure was made regarding the maintenance of controls and procedures that are developed to provide appropriate assurance to the shareholders. They are disclosed according to the SEC Act of 1934 and as per the required guidelines and timelines.
References
Nike Inc – SEC site search search results. (n.d.). SEC.gov. https://secsearch.sec.gov/search?utf8=%E2%9C%93&affiliate=secsearch&sort_by=&query=nike+inc
Filings & forms. (2014, January 15). SEC.gov. https://www.sec.gov/edgar.shtml
Top of Form
United States., Federal Depository Library Program,, & United States. (2016). U.S. Securities and Exchange Commission. (Federal Depository Library Program Web Archive.)
Bottom of Form