FROM NIKE SEC 10K FILING 2020 (available to look up on NASDAQ for further info) Category: Operating
Question:
FROM NIKE SEC 10K FILING 2020 (available to look up on NASDAQ for further info)
Category: Operating Activities
- Net income versus total for operating activities: Report these values.
- What are the items of significance between net income and total for operating activities?
- Is the business providing cash flow from operations?
Category: Investing and Financing Activities
- Describe significant long-term assets (type and amount) purchased, sold, or retired during the current period as well as last year.
- Describe significant financing activities used by the corporation to increase cash (or other assets): These would be related to long-term liabilities and stockholders’ equity.
Category: Analysis
- Overall Cash Flow (total of three sections): Compare this year to last year.
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEAR ENDED MAY 31, | |||||||||
(Dollars in millions) | 2020 | 2019 | 2018 | ||||||
Cash provided (used) by operations: | |||||||||
Net income | $ | 2,539 | $ | 4,029 | $ | 1,933 | |||
Adjustments to reconcile net income to net cash provided (used) by operations: | |||||||||
Depreciation | 721 | 705 | 747 | ||||||
Deferred income taxes | (380 | ) | 34 | 647 | |||||
Stock-based compensation | 429 | 325 | 218 | ||||||
Amortization, impairment and other | 398 | 15 | 27 | ||||||
Net foreign currency adjustments | 23 | 233 | (99 | ) | |||||
Changes in certain working capital components and other assets and liabilities: | |||||||||
(Increase) decrease in accounts receivable | 1,239 | (270 | ) | 187 | |||||
(Increase) decrease in inventories | (1,854 | ) | (490 | ) | (255 | ) | |||
(Increase) decrease in prepaid expenses, operating lease right-of-use assets and other current and non-current assets | (654 | ) | (203 | ) | 35 | ||||
Increase (decrease) in accounts payable, accrued liabilities, operating lease liabilities and other current and non-current liabilities | 24 | 1,525 | 1,515 | ||||||
Cash provided (used) by operations | 2,485 | 5,903 | 4,955 | ||||||
Cash provided (used) by investing activities: | |||||||||
Purchases of short-term investments | (2,426 | ) | (2,937 | ) | (4,783 | ) | |||
Maturities of short-term investments | 74 | 1,715 | 3,613 | ||||||
Sales of short-term investments | 2,379 | 2,072 | 2,496 | ||||||
Additions to property, plant and equipment | (1,086 | ) | (1,119 | ) | (1,028 | ) | |||
Other investing activities | 31 | 5 | (22 | ) | |||||
Cash provided (used) by investing activities | (1,028 | ) | (264 | ) | 276 | ||||
Cash provided (used) by financing activities: | |||||||||
Proceeds from borrowings, net of debt issuance costs | 6,134 | — | — | ||||||
Increase (decrease) in notes payable, net | 49 | (325 | ) | 13 | |||||
Proceeds from exercise of stock options and other stock issuances | 885 | 700 | 733 | ||||||
Repurchase of common stock | (3,067 | ) | (4,286 | ) | (4,254 | ) | |||
Dividends — common and preferred | (1,452 | ) | (1,332 | ) | (1,243 | ) | |||
Other financing activities | (58 | ) | (50 | ) | (84 | ) | |||
Cash provided (used) by financing activities | 2,491 | (5,293 | ) | (4,835 | ) | ||||
Effect of exchange rate changes on cash and equivalents | (66 | ) | (129 | ) | 45 | ||||
Net increase (decrease) in cash and equivalents | 3,882 | 217 | 441 | ||||||
Cash and equivalents, beginning of year | 4,466 | 4,249 | 3,808 | ||||||
CASH AND EQUIVALENTS, END OF YEAR | $ | 8,348 | $ | 4,466 | $ | 4,249 | |||
Supplemental disclosure of cash flow information: | |||||||||
Cash paid during the year for: | |||||||||
Interest, net of capitalized interest | $ | 140 | $ | 153 | $ | 125 | |||
Income taxes | 1,028 | 757 | 529 | ||||||
Non-cash additions to property, plant and equipment | 121 | 160 | 294 | ||||||
Dividends declared and not paid | 385 | 347 | 320 | ||||||
Expert Answer:
Answer to question Category operating Activities Net income Vs Operating Activities Category 2020 2019 2018 Net income 2539 4029 1933 operating Activi... View the full answer
