The Reformulated Income Statement

1. Operating items are seperated from Financing items.

2. Operating income from sales is seperated from other operating income.
3. Tax is allocated to components of the statement, with no allocation to items reported on an after-tax
basis.

Reformulated Comprehensive Income Statement

Net Sales
- Expenses to generate Sales
Operating income from sales (before tax)
- Tax on operating income from sales
+ Tax as reported
+ Tax benefit from net financial expenses
- Tax allocated to other operating income
Operating income from sales (after tax)
± Other operating income (expense) requiring tax allocation
Restructuring charges and asset impairments
Merger Expenses
Gains and losses on asset sales
Gains and losses on security transactions
- Tax on other operating income
± After-Tax operating items
Equity share in subsidiary income
Operating items in extraordinary income
Dirty-Surplus operating items in Table 8.1
Hidden-dirty surplus operating items
Operating Income (after tax)
- Net financial expenses after tax
+ Interest expense
- Interest Revenue
± Realized gains and losses on financial assets
= Net Financial expense before tax
+ Tax benefit from net financial expenses
= net financial expense after tax
± Gains and losses on debt retirement
± Dirty Surplus financial items in Table 8.1
± Hidden dirty surplus financial items
+ Preferred dividends
± Gains and losses on redemption of preferred stock
- Tax benefit from preferred dividends (if any)
- Minority Interest
= Comprehensive Income to Common
 GAAP Balance Sheet: Nike Inc.
NIKE, INC.
CONSOLIDATED BALANCE SHEETS
May 31
2008 2007
(in millions)
ASSETS
Current assets:
Cash and equivalents $ 2,133.90 $ 1,856.70
Short-term investments 642.20 990.30
Accounts receivable,net 2,795.30 2,494.70
Inventories (Note 2) 2,438.40 2,121.90
Deferred income taxes (Note 8) 227.20 219.70
Prepaid expenses and other current assets 602.30 393.20
Total Current assets 8,839.30 8,076.50
Property, Plant and equipment , net(Note 3) 1,891.10 1,678.30
Identifiable intangible assets, net (Note 4) 743.10 409.90
Goodwill (Note 4) 448.80 130.80
Deffered Income taxes and other assets (Note 8) 520.40 392.80
Total Assets $ 12,442.70 10,688.30

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities:
Current portion of long term debt (Note 7) $ 6.30 30.50
Notes Payable (Note 6) 177.70 100.80
Accounts Payable (Note 6) 1,287.60 1,040.30
Accrued Liabilities (Note 5 and 16) 1,761.90 1,303.40
Income Taxes Payable 88.00 109.00
Total Current Liabilities 3,321.50 2,584.00
Long term debt (Note 7) 441.10 409.90
Deffered income taxes and other liabilities (Note 8) 854.50 668.70
Commitments and Contingencies (Notes 14 and 16) -
Reedemable Preferred Stock (Note 9) 0.30 0.30
Shareholder's Equity:
Common stock at stated value (Note 10):
Class A convertible - 96.8 and 117.6 shares outstanding 0.10 0.10
Class B - 394.3 and 384.1 shares outstanding 2.70 2.70
Capital in excess of stated value 2,497.80 1,960.00
Accumulated other comprehensive income (Note 13) 251.40 177.40
Retained earnings 5,073.30 4,885.20
Total shareholders' equity 7,825.30 7,025.40
Total liabilities and shareholders' equity $ 12,442.70 10,688.30

Furter information:
1. Working cash- Company has found 0.5% of sales is working cash (sales during 2008 = $18627 Million)
2. Accounts Payable- Interest bearing worth of $ 65.90 Million (Note-6, page-61)
3. Short term investments are of maturity of one year or more. (Page=54)
4.Inventories related to raw material, WIP, finshed goods (Note-2, Page-59)
5. Notes Payable written by the firm to generate cash(Note-6, Page-61)
 NIKE, INC.
CONSOLIDATED BALANCE SHEETS
May 31
2008 2007
(in millions)
ASSETS
Current assets:
Cash and equivalents $ 2,133.90 $ 1,856.70 Note
Short-term investments 642.20 990.30 Note
Accounts receivable,net 2,795.30 2,494.70
Inventories (Note 2) 2,438.40 2,121.90 Note
Deferred income taxes (Note 8) 227.20 219.70
Prepaid expenses and other current assets 602.30 393.20
Total Current assets 8,839.30 8,076.50
Property, Plant and equipment , net(Note 3) 1,891.10 1,678.30
Identifiable intangible assets, net (Note 4) 743.10 409.90
Goodwill (Note 4) 448.80 130.80
Deffered Income taxes and other assets (Note 8) 520.40 392.80
Total Assets $ 12,442.70 10,688.30

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities:
Current portion of long term debt (Note 7) $ 6.30 30.50
Notes Payable (Note 6) 177.70 100.80 Note
Accounts Payable (Note 6) 1,287.60 1,040.30 Note
Accrued Liabilities (Note 5 and 16) 1,761.90 1,303.40 Note
Income Taxes Payable 88.00 109.00
Total Current Liabilities 3,321.50 2,584.00
Long term debt (Note 7) 441.10 409.90
Deffered income taxes and other liabilities (Note 8) 854.50 668.70
Commitments and Contingencies (Notes 14 and 16) -
Reedemable Preferred Stock (Note 9) 0.30 0.30
Shareholder's Equity:
Common stock at stated value (Note 10):
Class A convertible - 96.8 and 117.6 shares outstanding 0.10 0.10
Class B - 394.3 and 384.1 shares outstanding 2.70 2.70
Capital in excess of stated value 2,497.80 1,960.00
Accumulated other comprehensive income (Note 13) 251.40 177.40
Retained earnings 5,073.30 4,885.20
Total shareholders' equity 7,825.30 7,025.40 Note
Total liabilities and shareholders' equity $ 12,442.70 10,688.30
Furter information:
1. Working cash- Company has found 0.5% of sales is working cash (sales during 2008 = $18627 Million)
2. Accounts Payable- Interest bearing worth of $ 65.90 Million (Note-6, page-61)
3. Short term investments are of maturity of one year or more. (Page=54)
4.Inventories related to raw material, WIP, finshed goods (Note-2, Page-59)
5. Notes Payable written by the firm to generate cash(Note-6, Page-61)
Refer Nike-2008-BS split and merged.