Company Analysis Assignment

PRT 503-601

Fall 2010

Nike

Chris Davis

North Carolina State University

Executive Summary

Today, Nike is engaged in design, development and marketing of footwear, apparel, equipment and accessory products. It is a seller of athletic footwear and athletic apparel in the world. It sells its products to retail accounts, through NIKE-owned retail, including stores and Internet sales, and through a mix of independent distributors and licensees, in over 170 countries around the world. NIKE's athletic footwear products are designed primarily for specific athletic use. It also markets footwear designed for aquatic activities, baseball, cheerleading, football, golf, lacrosse, outdoor activities, skateboarding, tennis, volleyball, walking, wrestling, and other athletic and recreational uses. It also markets apparel with licensed college and professional team, and league logos. It sells a line of performance equipment under the NIKE brand name, including bags, socks, sport balls, eyewear, timepieces, electronic devices, bats, gloves and protective equipment. (NYSE)

The economy put every company in a financial hole but amidst it all Nike was able to keep its head above water and still make a substantial profit. The current ratio over the last three years has increased from $2.66 in assets to every $1.00 in liabilities to $3.26. The total debt ratio decreased every year so far since 2008 going from $0.37 cents of debt to the dollar in assets to $0.32 cents currently. The amount of time it takes to collect payment has improved in which now it takes only 51 days instead of the 55 days it took to collect in 2008. Our profit margins improved significantly from 2009 by we now profit at least $.10 to every dollar instead of the before $.07. With the right people in place Nike should be in good shape for years to come. Revenues have increased by more than $300 million in the last three years and expenses haven’t seen major increases.

Company Profile

Mission Statement: To bring inspiration and innovation to every athlete in the world.

Nike Responsibility: Nike sees corporate responsibility as an integral part of how we can use the power of our brand, the energy and passion of our people, and the scale of our business to create meaningful change. The opportunity is greater than ever for corporate responsibility principles and practices to deliver business returns and become a driver of growth, to build deeper consumer and community connections and to create positive social and environmental impact in the world. (http://www.nikebiz.com/responsibility/)

Objectives- Command a premium price for Nike products- Increase sales- Gain buyer loyalty to the brand.- Continue to be the industry leader- Provide the best possible athletic product to our customers

Company HistoryBill Bowerman and Phil Knight founded Nike Inc. in 1962 under the name Blue Ribbon

Sports. At that time, their modest goal then was to distribute low-cost, high-quality Japanese athletic shoes to American consumers in an attempt to break Germany's domination of the domestic industry.

Nike, Inc. designs, develops, and markets footwear, apparel, equipment, and accessory products worldwide. The company offers various categories of shoes, including running, training, basketball, soccer, sport-inspired urban shoes, and kids’ shoes. It also provides shoes for aquatic activities, baseball, football, cheerleading, golf, lacrosse, outdoor activities, skateboarding, tennis, volleyball, walking, wrestling, and various athletic and recreational uses.

In addition, the company offers sports-inspired lifestyle apparel, athletic bags, and accessory items. Further, it provides a line of performance equipment, including bags, socks, sport balls, eyewear, timepieces, electronic devices, bats, gloves, protective equipment, golf clubs, and various equipments designed for sports activities under the Nike brand name, as well as markets apparel with licensed college and professional team and league logos. Additionally, it offers licenses to produce and sell Nike brand swimwear, children’s apparel, training equipment, eyewear, electronic devices, and golf accessories.

The company also markets its products under the brand names of Converse, Chuck Taylor, All Star, One Star, Umbro, Jack Purcell, Cole Haan, Bragano, and Hurley. It sells its products to retail accounts through stores, independent distributors, and licensees, as well as through its Website, nikestore.com. As of May 31, 2009, Nike, Inc. operated 338 retail stores in

the United States and 336 retail stores internationally. The company was founded in 1964 and is headquartered in Beaverton, Oregon. (www.nikebiz.com)

Economic Issues

We all know that our country is in a recession. Even though the major components of the

recession are gone, we still have some lingering

effects still present in

which we have no choice but to deal with. The recession can make difficult times for a majority of retail and manufacturing chains including Nike and Addidas.

One issue Nike faces is the ever present battle of marketing and advertising costs. Nike in 2009 made plans to cut thieir advertising and marketing budget as part of a push to reduce expenses. Nike has planned to eliminate as many as 1400 jobs or 4% of their workforce. Nike has been forced due to the economy to look a t every aspect of their costs. It has been stated that they still want to spend the top dollar on marquee athletes such as Tiger Woods but cut back on secondary athletes. According to TNS Media, Nike spent $143.4 million on advertising in the first nine months of 2008 which was down from a year ago when it spent almost $184 million. http://www.nytimes.com/2009/02/12/business/worldbusiness/12iht-nike.4.20150218.html?_r=1

In the economy as far as earnings are concerned, Nike has remained competitive among similar companies. In the 2009 fiscal year 3rd quarter a report showed earnings fell about 14.1% from a year ago to 79 cents per share. Looking ahead analysts see this number climbing back to at least $1.03 cents per share. http://www.bloggingstocks.com/2009/03/18/earnings-preview-the-recession-is-catching-up-with-nike/.

Nike Historical Timeline1957 Phil Knight and Bill Bowerman meet1960 Bowerman continues tinkering with new designs for athletic shoes

1962Knight receives a Master of Business Administration from Stanford University and makes up a company named "Blue Ribbon Sports" (BRS)

Another key issue or concern is the competitive nature of similar companies. The competition is steep with many companies competing for sales.  Lots of money is spent on marketing and promotions through different channels in order to communicate to the young demographic group of consumers who spend the most money on their products.  Growth has also slowed in the athletic footwear industry, however new markets are emerging with high growth rates.  A prime example can be with the X games market. Product demand also has a seasonal component.  Substitute products are always available, attractively priced, and comparable on quality and have only some feature differentiation. Substitute products can sometimes look like the best bang for the buck. Substitute products take away from Nike’s sales and revenue ability which decreases their worth in the economy. http://www.scs.unr.edu/~isom/nikepaper.doc

Revenue and Expenditure Summary

Revenue and expenditures can help you see the net income of a company and really let you know how well a company is doing in the economy. The following graphs are the revenues and expenses over the last three years and quarterly. Nike has increased its revenue every year and its expenses have kept relatively the same. There has been about a $387 million increase towards revenue from 2008 to 2010.

2010 2009 2008$0.00

$2,000.00$4,000.00$6,000.00$8,000.00

$10,000.00$12,000.00$14,000.00$16,000.00$18,000.00$20,000.00

$19,014.00 $19,176.10 $18,627.00

$10,213.60 $10,571.70 $10,239.60

Revenues & Expenses(in millions)2008-2010

RevenuesExpenses

Fiscal Year

Amou

nts i

n m

illio

ns

2009 Q1 2010 Q2 2010 Q3 2010 Q4$0.00

$1,000.00

$2,000.00

$3,000.00

$4,000.00

$5,000.00

$6,000.00 $4,799.00$4,405.60 $4,733.00 $5,076.90

$2,583.00 $2,444.90 $2,515.00 $2,670.70

Revenues & Expenses QuarterlyFY 2010(in millions)

RevenuesExpenses

Fiscal Yr. 2010

Amounts in Millions

Assets and Liabilities Summary

Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10May-10$0.00

$2,000.00

$4,000.00

$6,000.00

$8,000.00

$10,000.00

$12,000.00

$14,000.00

$16,000.00

$13,190.60 $13,358.40 $13,576.30$14,419.30

$4,099.60 $4,134.00 $4,147.10 $4,665.30

Quarterly Assets and Liablilities(in millions)

AssetsLiabilities

2010 2009 20080

2000

4000

6000

8000

10000

12000

14000

16000 14419.313249.6

12442.7

4665.3 4556.2 4617.1

Assets & Liabilities(in millions)2008-2010

AssetsLiabilities

Fiscla Year

Amounts in Millions

The following graphs illustrate what Nike Inc owns (assets) and owes (liabilities). The yearly graph shows that assets gradually increased year to year while liabilities remained low. With the quarterly graph assets and liabilities both gradually increased during every quarter of the 2010 FY. Quarterly assets increased about $1.2 billion and liabilities increased about $565 million. For the year assets were up about $1.2 billion. This seems to look promising for Nike in this recession if they can keep a good grip on their assets and still be able to increase will keeping liabilities low.

Financial Analysis and Ratios

Current Ratios

The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The higher the current ratio, the more capable the company is of paying its obligations.

All dollar amounts are in the millions

2010Current Assets/Current Liabilities = Current Ratio$10959.20/$3364.20 = 3.26 times

2009

Current Assets/Current Liabilities = Current Ratio$9734.0/$3277.0 = 2.97 times

2008Current Assets/Current Liabilities = Current Ratio$8839.3/$3321.5 = 2.66 times

Total Debt Ratio

The Total Debt Ratio shows the ratio of debt to the amount of assets a company has. In 2010, Nike had $0.32 of debt for every $1.00 of assets. This means that business is going very well. 2010

(Total Assets – Total Equity)/Total Assets = Total Debt Ratio($14419.3 -$9754.0)/$14419.3 = .32 times

2009(Total Assets – Total Equity)/Total Assets = Total Debt Ratio($13249.6 - $8693.4)/$13249.6 = .34 times

2008(Total Assets – Total Equity)/Total Assets = Total Debt Ratio($12442.7 - $7825.6)/$12442.7 = .37 times

Receivable Turnover and Days’ Sales in Receivables

Receivable turnover is an accounting measure used to quantify a company's effectiveness in extending credit as well as collecting debts. The receivables turnover ratio is an activity ratio, measuring how efficiently a company uses its assets. Days’ sales in receivables are the average numbers of days it takes a company to collect payments on its sold products.

All number is in the millions

2010Sales/Accounts Receivable = Receivable Turnover365 Days/Receivables Turnover = Days’ Sales in Receivables$19014.0/$2649.8 = 7.18 times365 days/7.18 = 51 days

2009Sales/Accounts Receivable = Receivable Turnover365 Days/Receivables Turnover = Days’ Sales in Receivables$19176.1/$2883.9 = 6.65 times365 days/6.65 = 55 days

2008Sales/Accounts Receivable = Receivable Turnover365 Days/Receivables Turnover = Days’ Sales in Receivables$18627.0/$2795.3 = 6.66 times365 days/6.66 = 55 days

Profit Margin

The profit margin shows us that in 2010, for every $1.00 in sales, Nike profited by over $.10. All dollar amounts are in the millions

2010Net Income/Sales = Profit Margin $1906.7/$19014.0 = .1003 = 10.03%

2009Net Income/Sales = Profit Margin$1486.7/$19176.1 = .0775 = 7.75%

2008Net Income/Sales = Profit Margin $1883.4/$18627.0 = .1011 = 10.11 %

Future Trends

Nike may be affected by the financial strength of our retailers: Retailers may not be able to produce expected returns, which hurts Nike’s business. With the poor economy, retailers are seeing a decrease in expenditures by its consumers. Nike will have to continue to spend money on their excellent marketing plans that have made them so successful in the past. Nike has won multiple awards for the marketing campaigns.

Nike faces competition and each new product that is launched has the potential to take the industry by storm. Under Armor has been a new opponent that has jumped onto the scene in the past couple of years. New competition is continual trying to sneak into the industry and take a share away from Nike as the industry leader. Nike must continue to place emphasis on their product development and continue to outmatch the competition as they have in the past to become the industry leader.

Today Nike is a stronger company than ever before. Affiliate brands such as Cole Haan, Converse, Hurley, Nike Golf and Umbro had contributed more than $2.5 billion in revenue. Nike has set records in revenue direct to consumer and in free cash flow from operations. Sustainability is another trend Nike is committed to. The Green Xchange which is an open source community for parents and intellectual properties and the Nike Foundations’ “The Girl Effect” are products of this commitment. Reasons for success are what Nike is behind and what stakeholders hold dear.

Nike is a branded name and will live in this world and the mind of other forever. Nike will continue to research their product and develop new and innovative products that will be unmatched by their competitors. Nike will also use their marketing tactics and marketing campaigns to position their product in the minds of their consumers so that the consumer will continue to stay loyal to the Nike brand. From Spike Lee to Michael Jordan, Nike will always be a dominate brand. http://media.corporate-ir.net/media_files/IROL/10/100529/nike-ar-20100804/index.html#mark_parker_letter

Reference Page

http://www.nyse.com/about/listed/nke.html http://media.corporate-ir.net/media_files/IROL/10/100529/nike-ar-20100804/

index.html#mark_parker_letter . http://www.scs.unr.edu/~isom/nikepaper.doc http://www.bloggingstocks.com/2009/03/18/earnings-preview-the-recession-is-catching-

up-with-nike/. http://www.nytimes.com/2009/02/12/business/worldbusiness/12iht-

nike.4.20150218.html?_r=1

Appendix

Income Statement Balance Sheet

Cash Flow 10 Year Summary

Annual Interim

Financial data in U.S. Dollars Values in Millions (Except for per share

items)

2011 Q1 2010 Q4 2010 Q3 2010 Q2 2010 Q1

Period End Date 08/31/2010 05/31/2010 02/28/2010 11/30/2009 08/31/2009

Period Length 3 Months 3 Months 3 Months 3 Months 3 Months

Stmt Source 10-Q 10-K 10-Q 10-Q 10-Q

Stmt Source Date 10/06/2010 07/20/2010 04/07/2010 01/06/2010 10/06/2010

Stmt Update Type Updated Updated Updated Updated Reclassified

Revenue 5,175.0 5,076.9 4,733.0 4,405.6 4,799.0

Total Revenue 5,175.0 5,076.9 4,733.0 4,405.6 4,799.0

Cost of Revenue, Total 2,741.0 2,670.7 2,515.0 2,444.9 2,583.0

Gross Profit 2,434.0 2,406.2 2,218.0 1,960.7 2,216.0

Selling/General/Administrative Expenses, Total

1,673.0 1,737.9 1,563.8 1,478.6 1,546.0

Research & Development 0.0 0.0 0.0 0.0 0.0

Depreciation/Amortization 0.0 0.0 0.0 0.0 0.0

Interest Expense (Income), Net Operating

-1.0 2.5 0.9 1.6 1.0

Unusual Expense (Income) 0.0 0.0 0.0 0.0 0.0

Other Operating Expenses, Total 7.0 -17.0 -8.6 -10.5 -12.0

Operating Income 755.0 682.8 661.9 491.0 681.0

Interest Income (Expense), Net Non-Operating

0.0 0.0 0.0 0.0 0.0

Gain (Loss) on Sale of Assets 0.0 0.0 0.0 0.0 0.0

Other, Net 0.0 0.0 0.0 0.0 0.0

Income Before Tax 755.0 682.8 661.9 491.0 681.0

Income Tax - Total 196.0 160.9 165.5 115.6 168.0

Income After Tax 559.0 521.9 496.4 375.4 513.0

Minority Interest 0.0 0.0 0.0 0.0 0.0

Equity In Affiliates 0.0 0.0 0.0 0.0 0.0

U.S. GAAP Adjustment 0.0 0.0 0.0 0.0 0.0

Net Income Before Extra. Items 559.0 521.9 496.4 375.4 513.0

Total Extraordinary Items 0.0 0.0 0.0 0.0 0.0

Net Income 559.0 521.9 496.4 375.4 513.0

Total Adjustments to Net Income 0.0 0.0 0.0 0.0 0.0

Preferred Dividends

General Partners' Distributions

Basic Weighted Average Shares 479.6 484.4 484.4 487.2 485.8

Basic EPS Excluding Extraordinary Items 1.17 1.08 1.02 0.77 1.06

Basic EPS Including Extraordinary Items 1.17 1.08 1.02 0.77 1.06

Diluted Weighted Average Shares 488.6 493.9 492.3 494.5 491.6

Diluted EPS Excluding Extraordinary Items

1.14 1.06 1.01 0.76 1.04

Diluted EPS Including Extraordinary Items

1.14 1.06 1.01 0.76 1.04

Dividends per Share - Common Stock Primary Issue

0.27 0.27 0.27 0.27 0.25

Dividends per Share - Common Stock Issue 2

0.27 0.27 0.27 0.27 0.25

Gross Dividends - Common Stock 129.0 0.0 0.0 0.0 122.0

Depreciation, Supplemental 78.0 83.2 81.4 79.8 79.0

Normalized EBITDA 835.0 772.1 747.5 575.6 764.0

Normalized EBIT 754.0 685.3 662.8 492.6 682.0

Normalized Income Before Tax 755.0 682.8 661.9 491.0 681.0

Normalized Income After Taxes 559.0 521.9 496.4 375.4 513.0

Normalized Income Available to Common

559.0 521.9 496.4 375.4 513.0

Basic Normalized EPS 1.17 1.08 1.02 0.77 1.06

Diluted Normalized EPS 1.14 1.06 1.01 0.76 1.04

Amortization of Intangibles 3.0 3.6 3.3 3.2 3.0

Annual Interim

Financial data in U.S. Dollars Values in Millions (Except for per share

items)2010 2009 2008 2007 2006

Period End Date 05/31/2010 05/31/2009 05/31/2008 05/31/2007 05/31/2006

Period Length 12 Months 12 Months 12 Months 12 Months 12 Months

Stmt Source 10-K 10-K 10-K 10-K 10-K

Stmt Source Date 07/20/2010 07/27/2009 07/28/2008 07/27/2007 07/28/2006

Stmt Update Type Updated Updated Updated Updated Updated

Revenue 19,014.0 19,176.1 18,627.0 16,325.9 14,954.9

Total Revenue 19,014.0 19,176.1 18,627.0 16,325.9 14,954.9

Cost of Revenue, Total 10,213.6 10,571.7 10,239.6 9,165.4 8,367.9

Gross Profit 8,800.4 8,604.4 8,387.4 7,160.5 6,587.0

Selling/General/Administrative Expenses, Total

6,326.4 6,149.6 5,953.7 5,028.7 4,477.8

Research & Development 0.0 0.0 0.0 0.0 0.0

Depreciation/Amortization 0.0 0.0 0.0 0.0 0.0

Interest Expense (Income), Net Operating

0.0 0.0 0.0 0.0 0.0

Unusual Expense (Income) 0.0 596.3 0.0 0.0 0.0

Other Operating Expenses, Total -12.8 -48.3 46.6 48.8 54.9

Operating Income 2,516.9 1,956.5 2,502.9 2,199.9 2,141.6

Interest Income (Expense), Net Non-Operating

0.0 0.0 0.0 0.0 0.0

Gain (Loss) on Sale of Assets 0.0 0.0 0.0 0.0 0.0

Other, Net 0.0 0.0 0.0 0.0 0.0

Income Before Tax 2,516.9 1,956.5 2,502.9 2,199.9 2,141.6

Income Tax - Total 610.2 469.8 619.5 708.4 749.6

Income After Tax 1,906.7 1,486.7 1,883.4 1,491.5 1,392.0

Minority Interest 0.0 0.0 0.0 0.0 0.0

Equity In Affiliates 0.0 0.0 0.0 0.0 0.0

U.S. GAAP Adjustment 0.0 0.0 0.0 0.0 0.0

Net Income Before Extra. Items 1,906.7 1,486.7 1,883.4 1,491.5 1,392.0

Total Extraordinary Items 0.0 0.0 0.0 0.0 0.0

Net Income 1,906.7 1,486.7 1,883.4 1,491.5 1,392.0

Total Adjustments to Net Income 0.0 0.0 0.0 0.0 0.0

Preferred Dividends

General Partners' Distributions

Basic Weighted Average Shares 485.5 484.9 495.6 503.8 518.0

Basic EPS Excluding Extraordinary Items 3.93 3.07 3.8 2.96 2.69

Basic EPS Including Extraordinary Items 3.93 3.07 3.8 2.96 2.69Diluted Weighted Average Shares 493.9 490.7 504.1 509.9 527.6

Diluted EPS Excluding Extraordinary Items

3.86 3.03 3.74 2.93 2.64

Diluted EPS Including Extraordinary Items

3.86 3.03 3.74 2.93 2.64

Dividends per Share - Common Stock Primary Issue

1.06 0.98 0.88 0.71 0.59

Dividends per Share - Common Stock Issue 2

1.06 0.98 0.88 0.71 0.59

Gross Dividends - Common Stock 514.8 475.2 432.8 357.2 304.9

Interest Expense, Supplemental 36.4 40.3 40.7 49.7 50.5

Depreciation, Supplemental 323.7 335.0 303.6 269.7 282.0Normalized EBITDA 2,824.0 2,850.0 2,699.9 2,362.6 2,346.1

Normalized EBIT 2,486.8 2,503.1 2,387.1 2,083.0 2,054.3

Normalized Income Before Tax 2,516.9 2,552.8 2,502.9 2,199.9 2,141.6

Normalized Income After Taxes 1,906.7 1,939.81 1,883.4 1,491.5 1,392.0

Normalized Income Available to Common

1,906.7 1,939.81 1,883.4 1,491.5 1,392.0

Basic Normalized EPS 3.93 4.0 3.8 2.96 2.69

Diluted Normalized EPS 3.86 3.95 3.74 2.93 2.64

Amortization of Intangibles 13.5 11.9 9.2 9.9 9.8

Annual Interim

Financial data in U.S. Dollars Values in Millions (Except for per share

items)2010 2009 2008 2007 2006

Period End Date 05/31/2010 05/31/2009 05/31/2008 05/31/2007 05/31/2006Stmt Source 10-K 10-K 10-K 10-K 10-K

Stmt Source Date 07/20/2010 07/27/2009 07/28/2008 07/27/2007 07/27/2007

Stmt Update Type Updated Updated Updated Updated Reclassified

AssetsCash and Short Term Investments 5,145.9 3,455.1 2,776.1 2,847.0 2,303.0

Cash & Equivalents

Short Term InvestmentsTotal Receivables, Net 2,649.8 2,883.9 2,795.3 2,494.7 2,382.9

Accounts Receivable - Trade, Net

Accounts Receivable - Trade, Gross

Provision for Doubtful Accounts

Total Inventory 2,040.8 2,357.0 2,438.4 2,121.9 2,076.7

Prepaid Expenses 873.9 765.6 602.3 393.2 380.1

Other Current Assets, Total 248.8 272.4 227.2 219.7 203.3

Total Current Assets 10,959.2 9,734.0 8,839.3 8,076.5 7,346.0

Property/Plant/Equipment, Total - Net 1,931.9 1,957.7 1,891.1 1,678.3 1,657.7

Goodwill, Net 187.6 193.5 448.8 130.8 130.8

Intangibles, Net 467.0 467.4 743.1 409.9 405.5

Long Term Investments 0.0 0.0 0.0 0.0 0.0

Note Receivable - Long Term 0.0 0.0 0.0 0.0 0.0

Other Long Term Assets, Total 873.6 897.0 520.4 392.8 329.6

Other Assets, Total 0.0 0.0 0.0 0.0 0.0

Total Assets 14,419.3 13,249.6 12,442.7 10,688.3 9,869.6

Liabilities and Shareholders' Equity

Accounts Payable 1,254.5 1,031.9 1,287.6 1,040.3 952.2

Payable/Accrued 0.0 0.0 0.0 0.0 0.0

Accrued Expenses 1,610.1 1,593.6 1,089.3 876.9 968.8

Notes Payable/Short Term Debt 138.6 342.9 177.7 100.8 43.4

Current Port. of LT Debt/Capital Leases 7.4 32.0 6.3 30.5 255.3

Other Current Liabilities, Total 353.6 276.6 760.6 535.5 392.7

Total Current Liabilities 3,364.2 3,277.0 3,321.5 2,584.0 2,612.4Total Long Term Debt 445.8 437.2 441.1 409.9 410.7

Long Term Debt

Deferred Income Tax 855.3 842.0 854.5 668.7 561.0

Minority Interest 0.0 0.0 0.0 0.0 0.0

Other Liabilities, Total 0.0 0.0 0.0 0.0 0.0

Total Liabilities 4,665.3 4,556.2 4,617.1 3,662.6 3,584.1

Redeemable Preferred Stock 0.3 0.3 0.3 0.3 0.3

Preferred Stock - Non Redeemable, Net 0.0 0.0 0.0 0.0 0.0

Common Stock 2.8 2.8 2.8 2.8 2.8

Additional Paid-In Capital 3,440.6 2,871.4 2,497.8 1,960.0 1,447.3

Retained Earnings (Accumulated Deficit)

6,095.5 5,451.4 5,073.3 4,885.2 4,713.4

Other Equity, Total 214.8 367.5 251.4 177.4 121.7

Total Equity 9,754.0 8,693.4 7,825.6 7,025.7 6,285.5

Total Liabilities & Shareholders’ Equity

14,419.3 13,249.6 12,442.7 10,688.3 9,869.6

Total Common Shares Outstanding 484.0 485.5 491.1 501.7 512.0

Total Preferred Shares Outstanding 0.0 0.0 0.0 0.0 0.0

Income Statement Balance Sheet

Cash Flow

10 Year Summary

Annual Interim

Financial data in U.S. Dollars Values in Millions (Except for per share

items)2011 Q1 2010 Q4 2010 Q3 2010 Q2 2010 Q1

Period End Date 08/31/2010 05/31/2010 02/28/2010 11/30/2009 08/31/2009

Stmt Source 10-Q 10-K 10-Q 10-Q 10-Q

Stmt Source Date 10/06/2010 07/20/2010 04/07/2010 01/06/2010 10/08/2009

Stmt Update Type Updated Updated Updated Updated Updated

Assets

Cash and Short Term Investments 4,688.0 5,145.9 4,038.9 4,010.0 3,629.8

Cash & Equivalents

Short Term Investments

Total Receivables, Net 2,791.0 2,649.8 2,833.8 2,716.5 2,835.3

Accounts Receivable - Trade, Net

Total Inventory 2,210.0 2,040.8 2,150.3 2,176.3 2,288.4

Prepaid Expenses 583.0 873.9 843.3 642.8 639.3

Other Current Assets, Total 259.0 248.8 221.7 220.0 214.1

Total Current Assets 10,531.0 10,959.2 10,088.0 9,765.6 9,606.9

Property/Plant/Equipment, Total - Net 1,975.0 1,931.9 1,962.6 2,023.9 1,980.8

Goodwill, Net 192.0 187.6 190.7 196.2 194.9

Intangibles, Net 470.0 467.0 468.0 472.5 471.2

Long Term Investments 0.0 0.0 0.0 0.0 0.0

Note Receivable - Long Term 0.0 0.0 0.0 0.0 0.0

Other Long Term Assets, Total 883.0 873.6 867.0 900.2 936.8

Other Assets, Total 0.0 0.0 0.0 0.0 0.0

Total Assets 14,051.0 14,419.3 13,576.3 13,358.4 13,190.6

Liabilities and Shareholders' Equity

Accounts Payable 1,101.0 1,254.5 994.7 1,008.7 961.9

Payable/Accrued 0.0 0.0 0.0 0.0 0.0

Accrued Expenses 1,463.0 1,610.1 1,473.8 1,367.2 1,461.2

Notes Payable/Short Term Debt 109.0 138.6 108.8 103.1 94.7

Current Port. of LT Debt/Capital Leases 132.0 7.4 7.5 7.6 7.1

Other Current Liabilities, Total 337.0 353.6 261.9 311.7 327.9

Total Current Liabilities 3,142.0 3,364.2 2,846.7 2,798.3 2,852.8

Total Long Term Debt 342.0 445.8 451.9 459.6 443.2

Long Term Debt

Deferred Income Tax 907.0 855.3 848.5 876.1 803.6

Minority Interest 0.0 0.0 0.0 0.0 0.0

Other Liabilities, Total 0.0 0.0 0.0 0.0 0.0

Total Liabilities 4,391.0 4,665.3 4,147.1 4,134.0 4,099.6

Redeemable Preferred Stock 0.0 0.3 0.3 0.3 0.3

Preferred Stock - Non Redeemable, Net 0.0 0.0 0.0 0.0 0.0

Common Stock 3.0 2.8 2.8 2.8 2.8

Additional Paid-In Capital 3,508.0 3,440.6 3,272.6 3,186.1 3,015.9

Retained Earnings (Accumulated 6,011.0 6,095.5 5,919.1 5,879.2 5,827.7

Deficit)

Other Equity, Total 138.0 214.8 234.4 156.0 244.3

Total Equity 9,660.0 9,754.0 9,429.2 9,224.4 9,091.0

Total Liabilities & Shareholders’ Equity

14,051.0 14,419.3 13,576.3 13,358.4 13,190.6

Total Common Shares Outstanding 477.87 484.0 483.7 487.45 487.0

Total Preferred Shares Outstanding