The SEC Form 10-K on NIKE is reproduced in Appendix C.
REQUIRED:
Review the NIKE SEC Form 10-K, answer the following question:
a. What percentage of total assets do property, plant, and equipment and long-lived assets in total make up?
b. What is the largest category of property, plant, and equipment?
c. How large is the depreciation and amortization expense relative to sales, and why is it listed on the statement of cash flows?
d. What method and estimated lives does NIKE use for its property, plant, and equipment?
e. What is the company’s largest intangible asset?
f. What is NIKE’s policy on asset impairments?
g. What event led to the large impairment change, and why are impairments listed on both the income statement and statement of cash flows?
h. How much did NIKE invest in property, plant, and equipment during 2008, and how much cash did it receive from disposals of property, plant, and equipment?