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1、UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549FORM 10-Q(Mark One)QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)OF THE SECURITIES EXCHANGE ACT OF 1934FOR THE QUARTERLY PERIOD ENDED FEBRUARY 29,2024OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D)OF THE SECURITIES EXCHANGE AC

2、T OF 1934FOR THE TRANSITION PERIOD FROM TO .Commission File No.1-10635NIKE,Inc.(Exact name of Registrant as specified in its charter)Oregon93-0584541(State or other jurisdiction of incorporation or organization)(I.R.S.Employer Identification No.)One Bowerman Drive,Beaverton,Oregon 97005-6453(Address

3、 of principal executive offices and zip code)(503)671-6453(Registrants telephone number,including area code)SECURITIES REGISTERED PURSUANT TO SECTION 12(B)OF THE ACT:Class B Common StockNKENew York Stock Exchange(Title of each class)(Trading symbol)(Name of each exchange on which registered)Indicate

4、 by check mark:YESNOwhether the registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during the preceding12 months(or for such shorter period that the registrant was required to file such reports),and(2)has been subject to such filing r

5、equirements for thepast 90 days.whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T(232.405 of this chapter)during the preceding 12 months(or for such shorter period that the registrant was required to submit

6、 such files).whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,a smaller reporting company,or an emerging growth company.See the definitions of large accelerated filer,accelerated filer,smaller reporting company,and emerging growth company in Rule 12b-2

7、 of the Exchange Act.Large accelerated filerAccelerated filer Non-accelerated filerSmaller reporting companyEmerging growth companyif an emerging growth company,if the registrant has elected not to use the extended transition period for complying with any new or revised financialaccounting standards

8、 provided pursuant to Section 13(a)of the Exchange Act.whether the registrant is a shell company(as defined in Rule 12b-2 of the Act).As of March 29,2024,the number of shares of the Registrants Common Stock outstanding were:Class A297,897,252 Class B1,211,461,555 1,509,358,807 Table of ContentsNIKE,

9、INC.FORM 10-QTABLE OF CONTENTSPAGEPART I-FINANCIAL INFORMATION1ITEM 1.Financial Statements1Unaudited Condensed Consolidated Statements of Income1Unaudited Condensed Consolidated Statements of Comprehensive Income2Unaudited Condensed Consolidated Balance Sheets3Unaudited Condensed Consolidated Statem

10、ents of Cash Flows4Unaudited Condensed Consolidated Statements of Shareholders Equity5Notes to the Unaudited Condensed Consolidated Financial Statements7ITEM 2.Managements Discussion and Analysis of Financial Condition and Results of Operations25ITEM 3.Quantitative and Qualitative Disclosures about

11、Market Risk45ITEM 4.Controls and Procedures45PART II-OTHER INFORMATION47ITEM 1.Legal Proceedings47ITEM 1A.Risk Factors47ITEM 2.Unregistered Sales of Equity Securities and Use of Proceeds48ITEM 5.Other Information49ITEM 6.Exhibits50Signatures51Table of ContentsPART I-FINANCIAL INFORMATIONITEM 1.FINAN

12、CIAL STATEMENTSNIKE,INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOMETHREE MONTHS ENDEDNINE MONTHS ENDED(In millions,except per share data)FEBRUARY 29,2024FEBRUARY 28,2023FEBRUARY 29,2024FEBRUARY 28,2023Revenues$12,429$12,390$38,756$38,392 Cost of sales6,867 7,019 21,503 21,695 Gross profit5

13、,562 5,371 17,253 16,697 Demand creation expense1,011 923 3,194 2,968 Operating overhead expense3,215 3,036 9,294 9,035 Total selling and administrative expense4,226 3,959 12,488 12,003 Interest expense(income),net(52)(7)(108)22 Other(income)expense,net(16)(58)(101)(283)Income before income taxes1,4

14、04 1,477 4,974 4,955 Income tax expense232 237 774 916 NET INCOME$1,172$1,240$4,200$4,039 Earnings per common share:Basic$0.77$0.80$2.76$2.59 Diluted$0.77$0.79$2.74$2.57 Weighted average common shares outstanding:Basic1,513.2 1,543.8 1,520.8 1,556.7 Diluted1,526.5 1,564.8 1,534.0 1,574.4 The accompa

15、nying Notes to the Unaudited Condensed Consolidated Financial Statements are an integral part of this statement.1Table of ContentsNIKE,INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMETHREE MONTHS ENDEDNINE MONTHS ENDED(Dollars in millions)FEBRUARY 29,2024FEBRUARY 28,2023FEBRUA

16、RY 29,2024FEBRUARY 28,2023Net income$1,172$1,240$4,200$4,039 Other comprehensive income(loss),net of tax:Change in net foreign currency translation adjustment(57)153 18 281 Change in net gains(losses)on cash flow hedges50(433)(139)(279)Change in net gains(losses)on other11 23 15(18)Total other compr

17、ehensive income(loss),net of tax4(257)(106)(16)TOTAL COMPREHENSIVE INCOME$1,176$983$4,094$4,023 The accompanying Notes to the Unaudited Condensed Consolidated Financial Statements are an integral part of this statement.2Table of ContentsNIKE,INC.UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETSFEBRUAR

18、Y 29,MAY 31,(In millions)20242023ASSETSCurrent assets:Cash and equivalents$8,960$7,441 Short-term investments1,613 3,234 Accounts receivable,net4,526 4,131 Inventories7,726 8,454 Prepaid expenses and other current assets1,928 1,942 Total current assets24,753 25,202 Property,plant and equipment,net5,

19、082 5,081 Operating lease right-of-use assets,net2,856 2,923 Identifiable intangible assets,net259 274 Goodwill240 281 Deferred income taxes and other assets4,166 3,770 TOTAL ASSETS$37,356$37,531 LIABILITIES AND SHAREHOLDERS EQUITYCurrent liabilities:Current portion of long-term debt$Notes payable6

20、6 Accounts payable2,340 2,862 Current portion of operating lease liabilities474 425 Accrued liabilities5,818 5,723 Income taxes payable391 240 Total current liabilities9,029 9,256 Long-term debt8,930 8,927 Operating lease liabilities2,691 2,786 Deferred income taxes and other liabilities2,480 2,558

21、Commitments and contingencies(Note 12)Redeemable preferred stock Shareholders equity:Common stock at stated value:Class A convertible 298 and 305 shares outstanding Class B 1,213 and 1,227 shares outstanding3 3 Capital in excess of stated value13,128 12,412 Accumulated other comprehensive income(los

22、s)125 231 Retained earnings970 1,358 Total shareholders equity14,226 14,004 TOTAL LIABILITIES AND SHAREHOLDERS EQUITY$37,356$37,531 The accompanying Notes to the Unaudited Condensed Consolidated Financial Statements are an integral part of this statement.3Table of ContentsNIKE,INC.UNAUDITED CONDENSE

23、D CONSOLIDATED STATEMENTS OF CASH FLOWSNINE MONTHS ENDED(Dollars in millions)FEBRUARY 29,2024FEBRUARY 28,2023Cash provided(used)by operations:Net income$4,200$4,039 Adjustments to reconcile net income to net cash provided(used)by operations:Depreciation589 516 Deferred income taxes(281)(216)Stock-ba

24、sed compensation618 556 Amortization,impairment and other51 107 Net foreign currency adjustments(81)(197)Changes in certain working capital components and other assets and liabilities:(Increase)decrease in accounts receivable(429)109(Increase)decrease in inventories698(527)(Increase)decrease in prep

25、aid expenses,operating lease right-of-use assets and other current and non-currentassets(342)(273)Increase(decrease)in accounts payable,accrued liabilities,operating lease liabilities and other current and non-current liabilities(213)(526)Cash provided(used)by operations4,810 3,588 Cash provided(use

26、d)by investing activities:Purchases of short-term investments(3,337)(4,844)Maturities of short-term investments2,036 2,470 Sales of short-term investments3,093 3,149 Additions to property,plant and equipment(599)(700)Other investing activities(9)62 Cash provided(used)by investing activities1,184 137

27、 Cash provided(used)by financing activities:Increase(decrease)in notes payable,net 4 Proceeds from exercise of stock options and other stock issuances477 413 Repurchase of common stock(3,214)(4,101)Dividends common and preferred(1,609)(1,488)Other financing activities(122)(94)Cash provided(used)by f

28、inancing activities(4,468)(5,266)Effect of exchange rate changes on cash and equivalents(7)(78)Net increase(decrease)in cash and equivalents1,519(1,619)Cash and equivalents,beginning of period7,441 8,574 CASH AND EQUIVALENTS,END OF PERIOD$8,960$6,955 Supplemental disclosure of cash flow information:

29、Non-cash additions to property,plant and equipment$177$145 Dividends declared and not paid561 527 The accompanying Notes to the Unaudited Condensed Consolidated Financial Statements are an integral part of this statement.4Table of ContentsNIKE,INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHARE

30、HOLDERS EQUITYCOMMON STOCKCAPITAL INEXCESSOF STATEDVALUEACCUMULATEDOTHERCOMPREHENSIVEINCOME(LOSS)RETAINEDEARNINGSTOTALCLASS ACLASS B(In millions,except per share data)SHARESAMOUNTSHARESAMOUNTBalance at November 30,2023298$1,219$3$12,871$121$1,151$14,146 Stock options exercised2 135 135 Repurchase of

31、 Class B Common Stock(8)(67)(799)(866)Dividends on common stock($0.370 per share)(561)(561)Issuance of shares to employees,net of shareswithheld for employee taxes(27)7(20)Stock-based compensation216 216 Net income1,172 1,172 Other comprehensive income(loss)4 4 Balance at February 29,2024298$1,213$3

32、$13,128$125$970$14,226 COMMON STOCKCAPITAL INEXCESSOF STATEDVALUEACCUMULATEDOTHERCOMPREHENSIVEINCOME(LOSS)RETAINEDEARNINGSTOTALCLASS ACLASS B(In millions,except per share data)SHARESAMOUNTSHARESAMOUNTBalance at November 30,2022305$1,245$3$11,851$559$2,859$15,272 Stock options exercised3 153 153 Repu

33、rchase of Class B Common Stock(13)(99)(1,420)(1,519)Dividends on common stock($0.340 per share)(527)(527)Issuance of shares to employees,net of shareswithheld for employee taxes(23)(23)Stock-based compensation192 192 Net income1,240 1,240 Other comprehensive income(loss)(257)(257)Balance at February

34、 28,2023305$1,235$3$12,074$302$2,152$14,531 COMMON STOCKCAPITAL INEXCESSOF STATEDVALUEACCUMULATEDOTHERCOMPREHENSIVEINCOME(LOSS)RETAINEDEARNINGSTOTALCLASS ACLASS B(In millions,except per share data)SHARESAMOUNTSHARESAMOUNTBalance at May 31,2023305$1,227$3$12,412$231$1,358$14,004 Stock options exercis

35、ed6 347 347 Conversion to Class B Common Stock(7)7 Repurchase of Class B Common Stock(30)(251)(2,956)(3,207)Dividends on common stock($1.080 per share)and preferred stock($0.10 per share)(1,645)(1,645)Issuance of shares to employees,net of shareswithheld for employee taxes3 2 13 15 Stock-based compe

36、nsation618 618 Net income4,200 4,200 Other comprehensive income(loss)(106)(106)Balance at February 29,2024298$1,213$3$13,128$125$970$14,226 5Table of ContentsCOMMON STOCKCAPITAL INEXCESSOF STATEDVALUEACCUMULATEDOTHERCOMPREHENSIVEINCOME(LOSS)RETAINEDEARNINGSTOTALCLASS ACLASS B(In millions,except per

37、share data)SHARESAMOUNTSHARESAMOUNTBalance at May 31,2022305$1,266$3$11,484$318$3,476$15,281 Stock options exercised6 302 302 Repurchase of Class B Common Stock(39)(288)(3,829)(4,117)Dividends on common stock($0.985 per share)and preferred stock($0.10 per share)(1,535)(1,535)Issuance of shares to em

38、ployees,net of shareswithheld for employee taxes2 20 1 21 Stock-based compensation556 556 Net income4,039 4,039 Other comprehensive income(loss)(16)(16)Balance at February 28,2023305$1,235$3$12,074$302$2,152$14,531 The accompanying Notes to the Unaudited Condensed Consolidated Financial Statements a

39、re an integral part of this statement.6Table of ContentsNOTES TO THE UNAUDITED CONDENSED CONSOLIDATEDFINANCIAL STATEMENTSNOTE 1Summary of Significant Accounting Policies8NOTE 2Accrued Liabilities9NOTE 3Fair Value Measurements9NOTE 4Short-Term Borrowings and Credit Lines11NOTE 5Income Taxes11NOTE 6St

40、ock-Based Compensation12NOTE 7Earnings Per Share13NOTE 8Risk Management and Derivatives14NOTE 9Accumulated Other Comprehensive Income(Loss)17NOTE 10Revenues19NOTE 11Operating Segments21NOTE 12Contingencies23NOTE 13Acquisitions and Divestitures23NOTE 14Restructuring247Table of ContentsNOTE 1 SUMMARY

41、OF SIGNIFICANT ACCOUNTING POLICIESBASIS OF PRESENTATIONThe Unaudited Condensed Consolidated Financial Statements include the accounts of NIKE,Inc.and its subsidiaries(the Company or NIKE)and reflect all normalrecurring adjustments which are,in the opinion of management,necessary for a fair statement

42、 of the results of operations for the interim period.The year-end CondensedConsolidated Balance Sheet data as of May 31,2023,was derived from audited financial statements,but does not include all disclosures required by accountingprinciples generally accepted in the United States of America(U.S.GAAP

43、).The interim financial information and notes thereto should be read in conjunction with theCompanys latest Annual Report on Form 10-K for the fiscal year ended May 31,2023(the Annual Report).The results of operations for the three and nine monthsended February 29,2024,are not necessarily indicative

44、 of results to be expected for the entire fiscal year.RECENTLY ISSUED ACCOUNTING STANDARDS AND DISCLOSURE RULESIn November 2023,the Financial Accounting Standards Board(the FASB)issued Accounting Standards Update(ASU)2023-07,Segment Reporting(Topic 280):Improvements to Reportable Segment Disclosures

45、,which is intended to improve reportable segment disclosure requirements,primarily through enhanced disclosuresabout significant expenses.The amendments will require public entities to disclose significant segment expenses that are regularly provided to the chief operatingdecision maker and included

46、 within segment profit and loss.The amendments are effective for the Companys annual periods beginning June 1,2024,and interim periodsbeginning June 1,2025,with early adoption permitted,and will be applied retrospectively to all prior periods presented in the financial statements.The Company iscurre

47、ntly evaluating the ASU to determine its impact on the Companys disclosures.In December 2023,the FASB issued ASU 2023-09,Income Taxes(Topic 740):Improvements to Income Tax Disclosures,which includes amendments that furtherenhance income tax disclosures,primarily through standardization and disaggreg

48、ation of rate reconciliation categories and income taxes paid by jurisdiction.Theamendments are effective for the Companys annual periods beginning June 1,2025,with early adoption permitted,and should be applied either prospectively orretrospectively.The Company is currently evaluating the ASU to de

49、termine its impact on the Companys disclosures.In March 2024,the U.S.Securities and Exchange Commission(SEC)adopted the final rule under SEC Release No.33-11275,The Enhancement and Standardizationof Climate-Related Disclosures for Investors.This rule will require registrants to disclose certain clim

50、ate-related information in registration statements and annual reports.The disclosure requirements will apply to the Companys fiscal year beginning June 1,2025.The Company is currently evaluating the final rule to determine its impact onthe Companys disclosures.RECENTLY ADOPTED ACCOUNTING STANDARDSIn

51、 September 2022,the FASB issued ASU 2022-04,Liabilities Supplier Finance Programs(Subtopic 405-50):Disclosure of Supplier Finance Program Obligations.Thenew guidance requires qualitative and quantitative disclosure sufficient to enable users of the financial statements to understand the nature,activ

52、ity during the period,changes from period to period and potential magnitude of such programs.The Company adopted the required guidance in the first quarter of fiscal 2024.Certain financial institutions offer voluntary supplier finance programs facilitated through a third-party platform that provide

53、participating suppliers the option to financevalid payment obligations from the Company.The Company is not a party to agreements negotiated between participating suppliers and third-party financial institutions.The Companys obligations to its suppliers,including amounts due and payment terms,are not

54、 affected by a suppliers decision to participate in these programs and theCompany does not provide guarantees to third parties in connection with these programs.As of February 29,2024 and May 31,2023,the Company had$704 million and$834 million,respectively,of outstanding supplier obligations confirm

55、ed as valid under these programs.These amounts are included within Accounts payable on theUnaudited Condensed Consolidated Balance Sheets.8Table of ContentsNOTE 2 ACCRUED LIABILITIESAccrued liabilities included the following:FEBRUARY 29,MAY 31,(Dollars in millions)20242023Compensation and benefits,e

56、xcluding taxes$1,254$1,737 Sales-related reserves1,227 994 Dividends payable566 529 Endorsement compensation493 552 Other2,278 1,911TOTAL ACCRUED LIABILITIES$5,818$5,723 NOTE 3 FAIR VALUE MEASUREMENTSThe Company measures certain financial assets and liabilities at fair value on a recurring basis,inc

57、luding derivatives,equity securities and available-for-sale debtsecurities.For additional information about the Companys fair value policies,refer to Note 1 Summary of Significant Accounting Policies within the Annual Report.The following tables present information about the Companys financial asset

58、s measured at fair value on a recurring basis as of February 29,2024 and May 31,2023,andindicate the level in the fair value hierarchy in which the Company classifies the fair value measurement:FEBRUARY 29,2024(Dollars in millions)ASSETS AT FAIR VALUECASH AND EQUIVALENTSSHORT-TERM INVESTMENTSCash$1,

59、118$1,118$Level 1:U.S.Treasury securities1,002 1 1,001 Level 2:Commercial paper and bonds580 18 562 Money market funds7,272 7,272 Time deposits560 551 9 U.S.Agency securities41 41 Total Level 28,453 7,841 612 TOTAL$10,573$8,960$1,613 MAY 31,2023(Dollars in millions)ASSETS AT FAIR VALUECASH AND EQUIV

60、ALENTSSHORT-TERM INVESTMENTSCash$1,767$1,767$Level 1:U.S.Treasury securities2,655 2,655 Level 2:Commercial paper and bonds543 15 528 Money market funds5,157 5,157 Time deposits507 502 5 U.S.Agency securities46 46 Total Level 26,253 5,674 579 TOTAL$10,675$7,441$3,234 9Table of ContentsAs of February

61、29,2024,the Company held$867 million of available-for-sale debt securities with maturity dates within one year and$746 million with maturity datesgreater than one year and less than five years in Short-term investments on the Unaudited Condensed Consolidated Balance Sheets.The fair value of the Comp

62、anysavailable-for-sale debt securities approximates their amortized cost.Included in Interest expense(income),net was interest income related to the Companys investment portfolio of$113 million and$83 million for the three months endedFebruary 29,2024 and February 28,2023,respectively,and$304 millio

63、n and$196 million for the nine months ended February 29,2024 and February 28,2023,respectively.The following tables present information about the Companys derivative assets and liabilities measured at fair value on a recurring basis and indicate the level in the fairvalue hierarchy in which the Comp

64、any classifies the fair value measurement:FEBRUARY 29,2024DERIVATIVE ASSETSDERIVATIVE LIABILITIES(Dollars in millions)ASSETS ATFAIR VALUEOTHERCURRENTASSETSOTHER LONG-TERM ASSETSLIABILITIESAT FAIRVALUEACCRUEDLIABILITIESOTHER LONG-TERMLIABILITIESLevel 2:Foreign exchange forwards and options$390$324$66

65、$149$132$17 Interest rate swap contracts2 2 4 4 TOTAL$392$324$68$153$132$21(1)If the derivative instruments had been netted on the Unaudited Condensed Consolidated Balance Sheets,the asset and liability positions each would have been reduced by$149 million as ofFebruary 29,2024.As of that date,the C

66、ompany received$48 million of cash collateral from counterparties related to derivative instruments.No amount of collateral was posted on the derivativeliability balance as of February 29,2024.MAY 31,2023DERIVATIVE ASSETSDERIVATIVE LIABILITIES(Dollars in millions)ASSETS ATFAIR VALUEOTHERCURRENTASSET

67、SOTHER LONG-TERM ASSETSLIABILITIESAT FAIRVALUEACCRUEDLIABILITIESOTHER LONG-TERMLIABILITIESLevel 2:Foreign exchange forwards and options$557$493$64$180$128$52(1)If the derivative instruments had been netted on the Consolidated Balance Sheets,the asset and liability positions each would have been redu

68、ced by$178 million as of May 31,2023.As of that date,the Company received$36 million of cash collateral from counterparties related to derivative instruments.No amount of collateral was posted on the derivative liability balance as of May 31,2023.For additional information related to the Companys de

69、rivative financial instruments and credit risk,refer to Note 8 Risk Management and Derivatives.The carrying amounts of other current financial assets and other current financial liabilities approximate fair value.FINANCIAL ASSETS AND LIABILITIES NOT RECORDED AT FAIR VALUEThe Companys Long-term debt

70、is recorded at adjusted cost,net of unamortized premiums,discounts,debt issuance costs and interest rate swap fair value adjustments.The fair value of long-term debt is estimated based upon quoted prices for similar instruments or quoted prices for identical instruments in inactive markets(Level 2).

71、Thefair value of the Companys Long-term debt was approximately$7,764 million at February 29,2024 and$7,889 million at May 31,2023.(1)(1)(1)10Table of ContentsNOTE 4 SHORT-TERM BORROWINGS AND CREDIT LINESThe carrying amounts reflected on the Unaudited Condensed Consolidated Balance Sheets for Notes p

72、ayable approximate fair value.As of February 29,2024 and May 31,2023,the Company had no borrowings outstanding under its$3 billion commercial paper program.On March 8,2024,subsequent to the end of the third quarter of fiscal 2024,the Company entered into a 364-day committed credit facility agreement

73、 with a syndicate ofbanks,which provides for up to$1 billion of borrowings,with an option to increase borrowings up to$1.5 billion in total with lender approval.The facility matures on March7,2025,with an option to extend the maturity date an additional 364 days.This facility replaces the prior$1 bi

74、llion 364-day credit facility agreement entered into on March10,2023,which matured on March 8,2024.Based on the Companys current long-term senior unsecured debt ratings of AA-and A1 from Standard and PoorsCorporation and Moodys Investor Services,respectively,the interest rate charged on any outstand

75、ing borrowings would be the prevailing Term Secured OvernightFinancing Rate(Term SOFR)for the applicable interest period plus 0.60%.The facility fee is 0.02%of the total undrawn commitment.As of April 4,2024,no amountswere outstanding under this committed credit facility.There have been no other cha

76、nges to the credit lines reported in the Annual Report for the fiscal year ended May 31,2023.NOTE 5 INCOME TAXESThe effective tax rate was 15.6%and 18.5%for the nine months ended February 29,2024 and February 28,2023,respectively.The decrease in the Companys effectivetax rate was primarily due to on

77、e-time benefits including the impact of temporary relief provided by the Internal Revenue Service(IRS)relating to U.S.foreign tax creditregulations.On July 21,2023,the IRS issued Notice 2023-55 which specifically delayed the application of certain U.S.foreign tax credit regulations that had previous

78、lylimited the Companys ability to claim credits on certain foreign taxes for the fiscal year ended May 31,2023.As a result of this new guidance,the Company recognized aone-time tax benefit related to prior year tax positions in the first three months of fiscal 2024.Other one-time benefits included a

79、 reduction in accrued withholding taxes onundistributed foreign earnings recognized in the second quarter of fiscal 2024.On August 16,2022,the U.S.government enacted the Inflation Reduction Act of 2022 that included,among other provisions,changes to the U.S.corporate income taxsystem,including a fif

80、teen percent minimum tax based on adjusted financial statement income,which was effective for the Company beginning June 1,2023.Based onthe Companys current analysis of the provisions,these tax law changes are not expected to have a material impact on the Companys financial statements for fiscal2024

81、.As of February 29,2024,total gross unrecognized tax benefits,excluding related interest and penalties,were$988 million,$701 million of which would affect theCompanys effective tax rate if recognized in future periods.The majority of the total gross unrecognized tax benefits are long-term in nature

82、and included within Deferredincome taxes and other liabilities on the Unaudited Condensed Consolidated Balance Sheets.As of May 31,2023,total gross unrecognized tax benefits,excluding relatedinterest and penalties,were$936 million.As of February 29,2024 and May 31,2023,accrued interest and penalties

83、 related to uncertain tax positions were$314 millionand$268 million,respectively,(excluding federal benefit)and included within Deferred income taxes and other liabilities on the Unaudited Condensed ConsolidatedBalance Sheets.The Company is subject to taxation in the U.S.,as well as various state an

84、d foreign jurisdictions.The Company is currently under audit by the U.S.IRS for fiscal years2017 through 2019.The Company has closed all U.S.federal income tax matters through fiscal 2016,with the exception of certain transfer pricing adjustments.Tax years after 2011 remain open in certain major for

85、eign jurisdictions.Although the timing of resolution of audits is not certain,the Company evaluates all domestic andforeign audit issues in the aggregate,along with the expiration of applicable statutes of limitations,and estimates that it is reasonably possible the total grossunrecognized tax benef

86、its could decrease by up to$20 million within the next 12 months.In January 2019,the European Commission opened a formal investigation toexamine whether the Netherlands has breached State Aid rules when granting certain tax rulings to the Company.The Company believes the investigation is withoutmeri

87、t.If this matter is adversely resolved,the Netherlands may be required to assess additional amounts with respect to prior periods,and the Companys income taxesrelated to prior periods in the Netherlands could increase.11Table of ContentsNOTE 6 STOCK-BASED COMPENSATIONSTOCK-BASED COMPENSATIONThe NIKE

88、,Inc.Stock Incentive Plan(the Stock Incentive Plan)provides for the issuance of up to 798 million previously unissued shares of Class B Common Stock inconnection with equity awards granted under the Stock Incentive Plan.The Stock Incentive Plan authorizes the grant of non-statutory stock options,inc

89、entive stockoptions,stock appreciation rights and stock awards,including restricted stock and restricted stock units.Restricted stock units include both time-vesting restricted stockunits(RSUs)as well as performance-based restricted stock units(PSUs).In addition to the Stock Incentive Plan,the Compa

90、ny gives employees the right to purchaseshares at a discount from the market price under employee stock purchase plans(ESPPs).For additional information,refer to Note 9 Common Stock and Stock-Based Compensation within the Annual Report.The following table summarizes the Companys total stock-based co

91、mpensation expense recognized in Cost of sales or Operating overhead expense,as applicable:THREE MONTHS ENDEDNINE MONTHS ENDED(Dollars in millions)FEBRUARY 29,2024FEBRUARY 28,2023FEBRUARY 29,2024FEBRUARY 28,2023Stock options$89$78$253$232 ESPPs17 20 55 53 Restricted stock and restricted stock units1

92、10 94 310 271 TOTAL STOCK-BASED COMPENSATION EXPENSE$216$192$618$556(1)Expense for stock options includes the expense associated with stock appreciation rights.(2)Restricted stock units include RSUs and PSUs.The income tax benefit related to stock-based compensation expense was$12 million and$22 mil

93、lion for the three months ended February 29,2024 and February 28,2023,respectively,and$30 million and$44 million for the nine months ended February 29,2024 and February 28,2023,respectively,and reported within Income taxexpense.STOCK OPTIONSAs of February 29,2024,the Company had$478 million of unrec

94、ognized compensation costs from stock options,net of estimated forfeitures,to be recognized in Cost ofsales or Operating overhead expense,as applicable,over a weighted average remaining period of 2.6 years.RESTRICTED STOCK AND RESTRICTED STOCK UNITSAs of February 29,2024,the Company had$699 million

95、of unrecognized compensation costs from restricted stock and restricted stock units,net of estimated forfeitures,to be recognized in Cost of sales or Operating overhead expense,as applicable,over a weighted average remaining period of 2.5 years.(1)(2)12Table of ContentsNOTE 7 EARNINGS PER SHAREThe f

96、ollowing is a reconciliation from basic earnings per common share to diluted earnings per common share.The computations of diluted earnings per common shareexclude restricted stock,restricted stock units and options,including shares under ESPPs,to purchase an estimated additional 40.9 million and 29

97、.5 million shares ofcommon stock outstanding for the three months ended February 29,2024 and February 28,2023,respectively,and 42.6 million and 31.8 million shares of common stockoutstanding for the nine months ended February 29,2024 and February 28,2023,respectively,because the awards were assumed

98、to be anti-dilutive.THREE MONTHS ENDEDNINE MONTHS ENDED(In millions,except per share data)FEBRUARY 29,2024FEBRUARY 28,2023FEBRUARY 29,2024FEBRUARY 28,2023Net income available to common stockholders$1,172$1,240$4,200$4,039 Determination of shares:Weighted average common shares outstanding1,513.2 1,54

99、3.8 1,520.8 1,556.7 Assumed conversion of dilutive stock options and awards13.3 21.0 13.2 17.7 DILUTED WEIGHTED AVERAGE COMMON SHARESOUTSTANDING1,526.5 1,564.8 1,534.0 1,574.4 Earnings per common share:Basic$0.77$0.80$2.76$2.59 Diluted$0.77$0.79$2.74$2.57 13Table of ContentsNOTE 8 RISK MANAGEMENT AN

100、D DERIVATIVESThe Company is exposed to global market risks,including the effect of changes in foreign currency exchange rates and interest rates,and uses derivatives to managefinancial exposures that occur in the normal course of business.As of and for the nine months ended February 29,2024,there ha

101、ve been no material changes to theCompanys hedging program or strategy from what was disclosed within the Annual Report.For additional information about the Companys derivatives and hedgingpolicies,refer to Note 1 Summary of Significant Accounting Policies and Note 12 Risk Management and Derivatives

102、 within the Annual Report.The majority of derivatives outstanding as of February 29,2024,are designated as foreign currency cash flow hedges,primarily for Euro/U.S.Dollar,British Pound/Euro,Chinese Yuan/U.S.Dollar and Japanese Yen/U.S.Dollar currency pairs.All derivatives are recognized on the Unaud

103、ited Condensed Consolidated Balance Sheets at fairvalue and classified based on the instruments maturity date.The following tables present the fair values of derivative instruments included within the Unaudited Condensed Consolidated Balance Sheets:DERIVATIVE ASSETSBALANCE SHEET LOCATIONFEBRUARY 29,

104、MAY 31,(Dollars in millions)20242023Derivatives formally designated as hedging instruments:Foreign exchange forwards and optionsPrepaid expenses and other current assets$312$480 Foreign exchange forwards and optionsDeferred income taxes and other assets66 64 Interest rate swap contractsDeferred inco

105、me taxes and other assets2 Total derivatives formally designated as hedging instruments380 544 Derivatives not designated as hedging instruments:Foreign exchange forwards and optionsPrepaid expenses and other current assets12 13 Total derivatives not designated as hedging instruments12 13 TOTAL DERI

106、VATIVE ASSETS$392$557 DERIVATIVE LIABILITIESBALANCE SHEET LOCATIONFEBRUARY 29,MAY 31,(Dollars in millions)20242023Derivatives formally designated as hedging instruments:Foreign exchange forwards and optionsAccrued liabilities$121$93 Foreign exchange forwards and optionsDeferred income taxes and othe

107、r liabilities17 52 Interest rate swap contractsDeferred income taxes and other liabilities4 Total derivatives formally designated as hedging instruments142 145 Derivatives not designated as hedging instruments:Foreign exchange forwards and optionsAccrued liabilities11 35 Total derivatives not design

108、ated as hedging instruments11 35 TOTAL DERIVATIVE LIABILITIES$153$180 14Table of ContentsThe following tables present the amounts affecting the Unaudited Condensed Consolidated Statements of Income:(Dollars in millions)AMOUNT OF GAIN(LOSS)RECOGNIZED IN OTHERCOMPREHENSIVE INCOME(LOSS)ON DERIVATIVESAM

109、OUNT OF GAIN(LOSS)RECLASSIFIED FROM ACCUMULATEDOTHER COMPREHENSIVEINCOME(LOSS)INTO INCOMETHREE MONTHS ENDEDLOCATION OF GAIN(LOSS)RECLASSIFIED FROM ACCUMULATEDOTHER COMPREHENSIVE INCOME(LOSS)INTO INCOMETHREE MONTHS ENDEDFEBRUARY 29,2024FEBRUARY 28,2023FEBRUARY 29,2024FEBRUARY 28,2023Derivatives desig

110、nated as cash flowhedges:Foreign exchange forwards and options$(32)$30 Revenues$(10)$14 Foreign exchange forwards and options135(141)Cost of sales70 182 Foreign exchange forwards and options 1 Demand creation expense1(1)Foreign exchange forwards and options49(65)Other(income)expense,net52 90 Interes

111、t rate swaps Interest expense(income),net(2)(2)TOTAL DESIGNATED CASH FLOWHEDGES$152$(175)$111$283(1)For the three months ended February 29,2024 and February 28,2023,the amounts recorded in Other(income)expense,net as a result of the discontinuance of cash flow hedges because theforecasted transactio

112、ns were no longer probable of occurring were immaterial.(2)Gains and losses associated with terminated interest rate swaps,which were previously designated as cash flow hedges and recorded in Accumulated other comprehensive income(loss),will bereleased through Interest expense(income),net over the t

113、erm of the issued debt.(Dollars in millions)AMOUNT OF GAIN(LOSS)RECOGNIZED IN OTHERCOMPREHENSIVE INCOME(LOSS)ON DERIVATIVESAMOUNT OF GAIN(LOSS)RECLASSIFIED FROM ACCUMULATEDOTHER COMPREHENSIVEINCOME(LOSS)INTO INCOMENINE MONTHS ENDEDLOCATION OF GAIN(LOSS)RECLASSIFIED FROM ACCUMULATEDOTHER COMPREHENSIV

114、E INCOME(LOSS)INTO INCOMENINE MONTHS ENDEDFEBRUARY 29,2024FEBRUARY 28,2023FEBRUARY 29,2024FEBRUARY 28,2023Derivatives designated as cash flowhedges:Foreign exchange forwards andoptions$(55)$52 Revenues$(7)$9 Foreign exchange forwards andoptions154 245 Cost of sales221 464 Foreign exchange forwards a

115、ndoptions2(2)Demand creation expense1(4)Foreign exchange forwards andoptions78 181 Other(income)expense,net138 297 Interest rate swaps Interest expense(income),net(6)(6)TOTAL DESIGNATED CASH FLOWHEDGES$179$476$347$760(1)For the nine months ended February 29,2024 and February 28,2023,the amounts reco

116、rded in Other(income)expense,net as a result of the discontinuance of cash flow hedges because theforecasted transactions were no longer probable of occurring were immaterial.(2)Gains and losses associated with terminated interest rate swaps,which were previously designated as cash flow hedges and r

117、ecorded in Accumulated other comprehensive income(loss),will bereleased through Interest expense(income),net over the term of the issued debt.(1)(1)(2)(1)(1)(2)15Table of ContentsAMOUNT OF GAIN(LOSS)RECOGNIZEDIN INCOME ON DERIVATIVESLOCATION OF GAIN(LOSS)RECOGNIZED ININCOMEON DERIVATIVESTHREE MONTHS

118、 ENDEDNINE MONTHS ENDED(Dollars in millions)FEBRUARY 29,2024FEBRUARY 28,2023FEBRUARY 29,2024FEBRUARY 28,2023Derivatives not designated as hedginginstruments:Foreign exchange forwards and options andembedded derivatives$9$(26)$(1)$52 Other(income)expense,netCASH FLOW HEDGESThe total notional amount o

119、f outstanding foreign currency derivatives designated as cash flow hedges was approximately$17.6 billion as of February 29,2024.Approximately$250 million of deferred net gains(net of tax)on both outstanding and matured derivatives in Accumulated other comprehensive income(loss)as ofFebruary 29,2024,

120、are expected to be reclassified to Net income during the next 12 months concurrent with the underlying hedged transactions also being recorded inNet income.Actual amounts ultimately reclassified to Net income are dependent on the exchange rates in effect when derivative contracts currently outstandi

121、ng mature.As of February 29,2024,the maximum term over which the Company hedges exposures to the variability of cash flows for its forecasted transactions was 27 months.FAIR VALUE HEDGESThe total notional amount of outstanding interest rate swap contracts designated as fair value hedges was$901 mill

122、ion as of February 29,2024.UNDESIGNATED DERIVATIVE INSTRUMENTSThe total notional amount of outstanding undesignated derivative instruments was$3.9 billion as of February 29,2024.CREDIT RISKAs of February 29,2024,the Company was in compliance with all credit risk-related contingent features,and deriv

123、ative instruments with such features were in a net assetposition of approximately$239 million.Accordingly,the Company was not required to post cash collateral as a result of these contingent features.Further,$48 million ofcollateral was received on the Companys derivative asset balance as of Februar

124、y 29,2024.The Company considers the impact of the risk of counterparty default to beimmaterial.For additional information related to the Companys derivative financial instruments and collateral,refer to Note 3 Fair Value Measurements.16Table of ContentsNOTE 9 ACCUMULATED OTHER COMPREHENSIVE INCOME(L

125、OSS)The changes in Accumulated other comprehensive income(loss),net of tax,were as follows:(Dollars in millions)FOREIGNCURRENCYTRANSLATIONADJUSTMENTCASH FLOWHEDGESNETINVESTMENTHEDGESOTHERTOTALBalance at November 30,2023$(178)$242$115$(58)$121 Other comprehensive income(loss):Other comprehensive gain

126、s(losses)before reclassifications(57)150 4 97 Reclassifications to net income of previously deferred(gains)losses(100)7(93)Total other comprehensive income(loss)(57)50 11 4 Balance at February 29,2024$(235)$292$115$(47)$125(1)The accumulated foreign currency translation adjustment and net investment

127、 hedge gains/losses related to an investment in a foreign subsidiary are reclassified to Net income upon sale or uponcomplete or substantially complete liquidation of the respective entity.(2)Net of immaterial tax impact.(Dollars in millions)FOREIGNCURRENCYTRANSLATIONADJUSTMENTCASH FLOWHEDGESNETINVE

128、STMENTHEDGESOTHERTOTALBalance at November 30,2022$(392)$933$115$(97)$559 Other comprehensive income(loss):Other comprehensive gains(losses)before reclassifications150(179)(29)Reclassifications to net income of previously deferred(gains)losses3(254)23(228)Total other comprehensive income(loss)153(433

129、)23(257)Balance at February 28,2023$(239)$500$115$(74)$302(1)The accumulated foreign currency translation adjustment and net investment hedge gains/losses related to an investment in a foreign subsidiary are reclassified to Net income upon sale or uponcomplete or substantially complete liquidation o

130、f the respective entity.(2)Net of immaterial tax impact.(Dollars in millions)FOREIGNCURRENCYTRANSLATIONADJUSTMENTCASH FLOWHEDGESNETINVESTMENTHEDGESOTHERTOTALBalance at May 31,2023$(253)$431$115$(62)$231 Other comprehensive income(loss):Other comprehensive gains(losses)before reclassifications16 175

131、15 206 Reclassifications to net income of previously deferred(gains)losses2(314)(312)Total other comprehensive income(loss)18(139)15(106)Balance at February 29,2024$(235)$292$115$(47)$125(1)The accumulated foreign currency translation adjustment and net investment hedge gains/losses related to an in

132、vestment in a foreign subsidiary are reclassified to Net income upon sale or uponcomplete or substantially complete liquidation of the respective entity.(2)Net of immaterial tax impact.(1)(1)(2)(2)(1)(1)(2)(2)(1)(1)(2)(2)17Table of Contents(Dollars in millions)FOREIGNCURRENCYTRANSLATIONADJUSTMENTCAS

133、H FLOWHEDGESNETINVESTMENTHEDGESOTHERTOTALBalance at May 31,2022$(520)$779$115$(56)$318 Other comprehensive income(loss):Other comprehensive gains(losses)before reclassifications(77)399 (27)295 Reclassifications to net income of previously deferred(gains)losses358(678)9(311)Total other comprehensive

134、income(loss)281(279)(18)(16)Balance at February 28,2023$(239)$500$115$(74)$302(1)The accumulated foreign currency translation adjustment and net investment hedge gains/losses related to an investment in a foreign subsidiary are reclassified to Net income upon sale or uponcomplete or substantially co

135、mplete liquidation of the respective entity.(2)Net of immaterial tax impact.The following table summarizes the reclassifications from Accumulated other comprehensive income(loss)to the Unaudited Condensed Consolidated Statements ofIncome:AMOUNT OF GAIN(LOSS)RECLASSIFIED FROM ACCUMULATEDOTHER COMPREH

136、ENSIVE INCOME(LOSS)INTO INCOMELOCATION OF GAIN(LOSS)RECLASSIFIED FROMACCUMULATEDOTHER COMPREHENSIVEINCOME(LOSS)INTO INCOMETHREE MONTHS ENDEDNINE MONTHS ENDED(Dollars in millions)FEBRUARY 29,2024FEBRUARY 28,2023FEBRUARY 29,2024FEBRUARY 28,2023Gains(losses)on foreign currency translationadjustment$(3)

137、$(2)$(374)Other(income)expense,netTotal before tax(3)(2)(374)Tax(expense)benefit 16 Gain(loss)net of tax(3)(2)(358)Gains(losses)on cash flow hedges:Foreign exchange forwards and options(10)14(7)9 RevenuesForeign exchange forwards and options70 182 221 464 Cost of salesForeign exchange forwards and o

138、ptions1(1)1(4)Demand creation expenseForeign exchange forwards and options52 90 138 297 Other(income)expense,netInterest rate swaps(2)(2)(6)(6)Interest expense(income),netTotal before tax111 283 347 760 Tax(expense)benefit(11)(29)(33)(82)Gain(loss)net of tax100 254 314 678 Gains(losses)on other(9)(3

139、2)1(12)Other(income)expense,netTotal before tax(9)(32)1(12)Tax(expense)benefit2 9(1)3 Gain(loss)net of tax(7)(23)(9)Total net gain(loss)reclassified for the period$93$228$312$311(1)(1)(2)(2)18Table of ContentsNOTE 10 REVENUESDISAGGREGATION OF REVENUESThe following tables present the Companys Revenue

140、s disaggregated by reportable operating segment,major product line and distribution channel:THREE MONTHS ENDED FEBRUARY 29,2024(Dollars in millions)NORTHAMERICAEUROPE,MIDDLEEAST&AFRICAGREATERCHINAASIAPACIFIC&LATINAMERICAGLOBALBRANDDIVISIONSTOTALNIKEBRANDCONVERSECORPORATETOTALNIKE,INC.Revenues by:Foo

141、twear$3,460$1,960$1,547$1,195$8,162$426$8,588 Apparel1,408 994 498 390 3,290 25 3,315 Equipment202 184 39 62 487 9 496 Other 9 9 35(14)30 TOTAL REVENUES$5,070$3,138$2,084$1,647$9$11,948$495$(14)$12,429 Revenues by:Sales to Wholesale Customers$2,440$1,966$1,243$939$6,588$257$6,845 Sales through Direc

142、t to Consumer2,630 1,172 841 708 5,351 203 5,554 Other 9 9 35(14)30 TOTAL REVENUES$5,070$3,138$2,084$1,647$9$11,948$495$(14)$12,429 THREE MONTHS ENDED FEBRUARY 28,2023(Dollars in millions)NORTHAMERICAEUROPE,MIDDLEEAST&AFRICAGREATERCHINAASIAPACIFIC&LATINAMERICAGLOBALBRANDDIVISIONSTOTALNIKEBRANDCONVER

143、SECORPORATETOTALNIKE,INC.Revenues by:Footwear$3,322$2,011$1,496$1,141$7,970$540$8,510 Apparel1,419 1,094 461 407 3,381 29 3,410 Equipment172 141 37 53 403 6 409 Other 12 12 37 12 61 TOTAL REVENUES$4,913$3,246$1,994$1,601$12$11,766$612$12$12,390 Revenues by:Sales to Wholesale Customers$2,323$2,061$1,

144、126$913$6,423$323$6,746 Sales through Direct to Consumer2,590 1,185 868 688 5,331 252 5,583 Other 12 12 37 12 61 TOTAL REVENUES$4,913$3,246$1,994$1,601$12$11,766$612$12$12,390 19Table of ContentsNINE MONTHS ENDED FEBRUARY 29,2024(Dollars in millions)NORTHAMERICAEUROPE,MIDDLEEAST&AFRICAGREATERCHINAAS

145、IAPACIFIC&LATINAMERICAGLOBALBRANDDIVISIONSTOTALNIKEBRANDCONVERSECORPORATETOTALNIKE,INC.Revenues by:Footwear$10,950$6,406$4,195$3,639$25,190$1,390$26,580 Apparel4,555 3,331 1,368 1,198 10,452 75 10,527 Equipment613 578 119 187 1,497 27 1,524 Other 34 34 110(19)125 TOTAL REVENUES$16,118$10,315$5,682$5

146、,024$34$37,173$1,602$(19)$38,756 Revenues by:Sales to Wholesale Customers$8,114$6,483$3,165$2,927$20,689$843$21,532 Sales through Direct to Consumer8,004 3,832 2,517 2,097 16,450 649 17,099 Other 34 34 110(19)125 TOTAL REVENUES$16,118$10,315$5,682$5,024$34$37,173$1,602$(19)$38,756 NINE MONTHS ENDED

147、FEBRUARY 28,2023(Dollars in millions)NORTHAMERICAEUROPE,MIDDLEEAST&AFRICAGREATERCHINAASIAPACIFIC&LATINAMERICAGLOBALBRANDDIVISIONSTOTALNIKEBRANDCONVERSECORPORATETOTALNIKE,INC.Revenues by:Footwear$11,090$6,086$4,099$3,313$24,588$1,633$26,221 Apparel4,598 3,528 1,228 1,255 10,609 70 10,679 Equipment565

148、 454 111 167 1,297 21 1,318 Other 44 44 117 13 174 TOTAL REVENUES$16,253$10,068$5,438$4,735$44$36,538$1,841$13$38,392 Revenues by:Sales to Wholesale Customers$8,533$6,506$2,862$2,792$20,693$971$21,664 Sales through Direct to Consumer7,720 3,562 2,576 1,943 15,801 753 16,554 Other 44 44 117 13 174 TO

149、TAL REVENUES$16,253$10,068$5,438$4,735$44$36,538$1,841$13$38,392 For the three and nine months ended February 29,2024 and three and nine months ended February 28,2023,Global Brand Divisions revenues included NIKE Brandlicensing and other miscellaneous revenues that are not part of a geographic opera

150、ting segment.Converse Other revenues were primarily attributable to licensingbusinesses.Corporate revenues primarily consisted of foreign currency hedge gains and losses related to revenues generated by entities within the NIKE Brandgeographic operating segments and Converse,but managed through the

151、Companys central foreign exchange risk management program.As of February 29,2024 and May 31,2023,the Company did not have any contract assets and had an immaterial amount of contract liabilities recorded in Accruedliabilities on the Unaudited Condensed Consolidated Balance Sheets.20Table of Contents

152、NOTE 11 OPERATING SEGMENTSThe Companys operating segments are evidence of the structure of the Companys internal organization.The NIKE Brand segments are defined by geographic regionsfor operations participating in NIKE Brand sales activity.Each NIKE Brand geographic segment operates predominantly i

153、n one industry:the design,development,marketing and selling of athletic footwear,apparel andequipment.The Companys reportable operating segments for the NIKE Brand are:North America;Europe,Middle East&Africa(EMEA);Greater China;and AsiaPacific&Latin America(APLA),and include results for the NIKE and

154、 Jordan brands.The Companys NIKE Direct operations are managed within each NIKE Brand geographic operating segment.Converse is also a reportable segment for the Companyand operates in one industry:the design,marketing,licensing and selling of athletic lifestyle sneakers,apparel and accessories.Globa

155、l Brand Divisions is included within the NIKE Brand for presentation purposes to align with the way management views the Company.Global Brand Divisionsrevenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment.Global Brand Divisions cos

156、ts representdemand creation and operating overhead expense that include product creation and design expenses centrally managed for the NIKE Brand,as well as costs associatedwith NIKE Direct global digital operations and enterprise technology.Corporate consists primarily of unallocated general and ad

157、ministrative expenses,including expenses associated with centrally managed departments;depreciation andamortization related to the Companys headquarters;unallocated insurance,benefit and compensation programs,including stock-based compensation;and certainforeign currency gains and losses,including c

158、ertain hedge gains and losses.For the three and nine months ended February 29,2024,Corporate also includes pre-taxrestructuring charges recognized as a result of the Company taking steps to streamline the organization.These pre-tax charges primarily reflect employee severancecosts and accelerated st

159、ock-based compensation expense.For more information,refer to Note 14 Restructuring.The primary financial measure used by the Company to evaluate performance of individual operating segments is earnings before interest and taxes(EBIT),whichrepresents Net income before Interest expense(income),net,and

160、 Income taxes in the Unaudited Condensed Consolidated Statements of Income.As part of the Companys centrally managed foreign exchange risk management program,standard foreign currency rates are assigned twice per year to each NIKEBrand entity in the Companys geographic operating segments and to Conv

161、erse.These rates are set approximately nine and twelve months in advance of the futureselling seasons to which they relate(specifically,for each currency,one standard rate applies to the fall and holiday selling seasons,and one standard rate applies to thespring and summer selling seasons)based on a

162、verage market spot rates in the calendar month preceding the date they are established.Inventories and Cost of sales forgeographic operating segments and Converse reflect the use of these standard rates to record non-functional currency product purchases in the entitys functionalcurrency.Differences

163、 between assigned standard foreign currency rates and actual market rates are included in Corporate,together with foreign currency hedge gainsand losses generated from the Companys centrally managed foreign exchange risk management program and other conversion gains and losses.Accounts receivable,ne

164、t,Inventories and Property,plant and equipment,net for operating segments are regularly reviewed by management and are therefore providedbelow.21Table of Contents THREE MONTHS ENDEDNINE MONTHS ENDED(Dollars in millions)FEBRUARY 29,2024FEBRUARY 28,2023FEBRUARY 29,2024FEBRUARY 28,2023REVENUESNorth Ame

165、rica$5,070$4,913$16,118$16,253 Europe,Middle East&Africa3,138 3,246 10,315 10,068 Greater China2,084 1,994 5,682 5,438 Asia Pacific&Latin America1,647 1,601 5,024 4,735 Global Brand Divisions9 12 34 44 Total NIKE Brand11,948 11,766 37,173 36,538 Converse495 612 1,602 1,841 Corporate(14)12(19)13 TOTA

166、L NIKE,INC.REVENUES$12,429$12,390$38,756$38,392 EARNINGS BEFORE INTEREST AND TAXESNorth America$1,400$1,190$4,360$4,064 Europe,Middle East&Africa734 785 2,591 2,750 Greater China722 702 1,761 1,754 Asia Pacific&Latin America471 485 1,406 1,470 Global Brand Divisions(1,199)(1,160)(3,572)(3,573)Conver

167、se98 164 380 526 Corporate(874)(696)(2,060)(2,014)Interest expense(income),net(52)(7)(108)22 TOTAL NIKE,INC.INCOME BEFORE INCOME TAXES$1,404$1,477$4,974$4,955 FEBRUARY 29,MAY 31,(Dollars in millions)20242023ACCOUNTS RECEIVABLE,NETNorth America$1,872$1,653 Europe,Middle East&Africa1,336 1,197 Greater

168、 China197 162 Asia Pacific&Latin America750 700 Global Brand Divisions96 96 Total NIKE Brand4,251 3,808 Converse219 235 Corporate56 88 TOTAL ACCOUNTS RECEIVABLE,NET$4,526$4,131 INVENTORIESNorth America$3,201$3,806 Europe,Middle East&Africa2,046 2,167 Greater China1,121 973 Asia Pacific&Latin America

169、889 894 Global Brand Divisions180 232 Total NIKE Brand7,437 8,072 Converse289 305 Corporate 77 TOTAL INVENTORIES$7,726$8,454(1)Inventories as of February 29,2024 and May 31,2023,were substantially all finished goods.(1)22Table of ContentsFEBRUARY 29,MAY 31,(Dollars in millions)20242023PROPERTY,PLANT

170、 AND EQUIPMENT,NETNorth America$760$794 Europe,Middle East&Africa1,068 1,009 Greater China264 292 Asia Pacific&Latin America292 279 Global Brand Divisions886 840 Total NIKE Brand3,270 3,214 Converse30 38 Corporate1,782 1,829 TOTAL PROPERTY,PLANT AND EQUIPMENT,NET$5,082$5,081 NOTE 12 CONTINGENCIESIn

171、the ordinary course of business,the Company is subject to various legal proceedings,claims and government investigations relating to its business,products andactions of its employees and representatives,including contractual and employment relationships,product liability,antitrust,customs,tax,intell

172、ectual property and othermatters.The outcome of these legal matters is inherently uncertain,and the Company cannot predict the eventual outcome of currently pending matters,the timing oftheir ultimate resolution or the eventual losses,fines,penalties or consequences relating to those matters.When a

173、loss related to a legal proceeding or claim is probableand reasonably estimable,the Company accrues its best estimate for the ultimate resolution of the matter.If one or more legal matters were to be resolved against theCompany in a reporting period for amounts above managements expectations,the Com

174、panys financial position,operating results and cash flows for that reporting periodcould be materially adversely affected.In the opinion of management,based on its current knowledge and after consultation with counsel,the Company does not believeany currently pending legal matters will have a materi

175、al adverse impact on the Companys results of operations,financial position or cash flows,except as describedbelow.BELGIAN CUSTOMS CLAIMThe Company has received claims for certain years from Belgian Customs and other government authorities for alleged underpaid duties related to products importedbegi

176、nning in fiscal 2018.The Company disputes these claims and has engaged in the appellate process.The Company has issued bank guarantees in order to appealthe claims.At this time,the Company is unable to estimate the range of loss and cannot predict the final outcome as it could take several years to

177、reach a resolution onthis matter.If this matter is ultimately resolved against the Company,the amounts owed,including fines,penalties and other consequences relating to the matter,couldhave a material adverse effect on the Companys results of operations,financial position and cash flows.NOTE 13 ACQU

178、ISITIONS AND DIVESTITURESDuring the second quarter of fiscal 2023,the sale of the Companys entities in Argentina and Uruguay to a third-party distributor was completed and the net loss on thesale of these entities totaled approximately$550 million.This loss included$389 million,recognized primarily

179、in fiscal 2020,largely due to the anticipated release of thecumulative foreign currency translation losses.The remaining loss recognized in fiscal 2023 was due to the devaluation of local currency and cash equivalents included inthe transferred assets.Upon completion of the sale,the foreign currency

180、 translation losses recorded in Accumulated other comprehensive income(loss)were reclassifiedto Net income within Other(income)expense,net,on the Unaudited Condensed Consolidated Statements of Comprehensive Income along with the allowance forpreviously recognized losses recorded in Accrued liabiliti

181、es.The net loss was classified within Corporate.The net cash proceeds received are reflected within Other investing activities on the Unaudited Condensed Consolidated Statements of Cash Flows.23Table of ContentsNOTE 14 RESTRUCTURINGDuring the third quarter of fiscal 2024,the Company announced a mult

182、i-year enterprise initiative designed to accelerate its future growth.As part of this initiative,management is taking steps to streamline the organization which will include a net reduction in the Companys global workforce.As of February 29,2024,the Companyexpects to recognize pre-tax restructuring

183、charges of approximately$450 million,primarily associated with employee severance costs and accelerated stock-basedcompensation expense,the majority of which are expected to be recognized by the end of fiscal 2024.The related cash payments are expected to take place through thefirst half of fiscal 2

184、025.The expected pre-tax charges are estimates and are subject to a number of assumptions and actual results may vary from the estimates provided.During the third quarter of fiscal 2024,the Company recognized pre-tax restructuring charges of$403 million.These charges were classified within Corporate

185、 as follows:THREE MONTHS ENDED FEBRUARY 29,2024(Dollars in millions)OPERATING OVERHEADEXPENSECOST OF SALESTOTALEmployee severance and related costs$319$60$379 Stock-based compensation expense21 3 24 Total pre-tax restructuring charges$340$63$403(1)Employee severance costs are recognized when a futur

186、e related expense is considered probable and reasonably estimable.(2)Non-cash restructuring related stock-based compensation expense is accelerated over the requisite service period,which for certain impacted employees could extend through the first half of fiscal2025.As of February 29,2024,a majori

187、ty of the$379 million of employee severance and related costs are reflected within Accrued liabilities on the Unaudited CondensedConsolidated Balance Sheets,classified within Other in Note 2 Accrued Liabilities,and an immaterial amount is reflected within Accounts payable.As of February 29,2024,the

188、Company has not made any cash payments related to this activity.(1)(2)24Table of ContentsITEM 2.MANAGEMENTS DISCUSSION AND ANALYSIS OFFINANCIAL CONDITION AND RESULTS OF OPERATIONSOVERVIEWNIKE designs,develops,markets and sells athletic footwear,apparel,equipment,accessories and services worldwide.We

189、 are the largest seller of athletic footwear andapparel in the world.We sell our products through NIKE Direct operations,which is comprised of both NIKE-owned retail stores and sales through our digital platforms(also referred to as NIKE Brand Digital),to wholesale accounts and to a mix of independe

190、nt distributors,licensees and sales representatives in nearly all countriesaround the world.Our goal is to deliver value to our shareholders by building a profitable global portfolio of branded footwear,apparel,equipment and accessoriesbusinesses.Our strategy is to achieve long-term revenue growth b

191、y creating innovative,must-have products,building deep personal consumer connections with ourbrands and delivering compelling consumer experiences through digital platforms and at retail.The Consumer Direct Acceleration strategy,which launched in July 2020,has driven revenue growth and millions of n

192、ew connections with our consumers,and shifted themix of our business toward our owned stores and digital platforms.To holistically serve all of our consumers across the marketplace,we expect to continue to invest in ourNIKE Direct operations while also increasing investment to elevate and differenti

193、ate our brand experience within our wholesale partners.In addition,our product creationand marketing organizations are aligned to a consumer construct focused on sports dimensions through Mens,Womens and Kids,which allows us to better serveconsumer needs.We also remain focused on accelerating our pa

194、ce of innovation and maximizing the impact of our storytelling.We continue to invest in a global Enterprise Resource Planning Platform,data and analytics,demand sensing,insight gathering and other areas to create an end-to-endtechnology foundation.We believe this approach will accelerate growth and

195、unlock more efficiency for our business,while driving speed and responsiveness as we serveconsumers globally across the marketplace.QUARTERLY FINANCIAL HIGHLIGHTS NIKE,Inc.Revenues for the third quarter of fiscal 2024 were$12.43 billion compared to$12.39 billion for the third quarter of fiscal 2023

196、NIKE Direct revenues were$5.4 billion for the third quarter of fiscal 2024 compared to$5.3 billion for the third quarter of fiscal 2023,and represented approximately45%of total NIKE Brand revenues Gross margin for the third quarter of fiscal 2024 increased 150 basis points to 44.8%,primarily driven

197、by strategic pricing actions and lower ocean freight rates andlogistics costs,partially offset by higher product input costs and restructuring charges Inventories as of February 29,2024,were$7.7 billion,a decrease of 9%compared to May 31,2023,primarily driven by a decrease in units We returned appro

198、ximately$1.4 billion to our shareholders in the third quarter of fiscal 2024 through share repurchases and dividendsECONOMIC CONDITIONS AND MARKET DYNAMICS Consumer Spending:During the third quarter of fiscal 2024,consumers continued to spend more cautiously and promotional activity remained high ac

199、ross ourindustry.In this environment,we continue to experience lower digital traffic and moderation in our revenue growth.We will continue to monitor macroeconomicconditions,including the potential impacts of inflation and higher interest rates on consumer behavior.Cost Inflationary Pressures:Inflat

200、ionary pressures,including higher product input costs,continued to negatively impact our gross margin.These negative impactson gross margin were more than offset by strategic pricing actions we have taken through the third quarter of fiscal 2024,as well as improvements in ocean freightrates and logi

201、stics costs we started to realize at the beginning of the second quarter of fiscal 2024.Supply Chain Conditions:During the first nine months of fiscal 2024 and as of February 29,2024,our inventory levels were healthy and reflected our proactiveactions taken to manage our inventory supply.In addition

202、,we continued to experience normalized inventory transit times and flow of seasonal product.Foreign Currency Impacts:As a global company with significant operations outside the United States,we are exposed to risk arising from changes in foreigncurrency exchange rates.For additional information,refe

203、r to Foreign Currency Exposures and Hedging Practices.25Table of ContentsThe operating environment could remain volatile in the fourth quarter of fiscal 2024,and the risk exists that the worsening of macroeconomic conditions could have amaterial adverse impact on our revenue growth as well as overal

204、l profitability.We continue to be confident in our brand strength and deep consumer connections.We willalso continue to focus on driving gross margin expansion and disciplined cost control while managing the health of our most iconic franchises.RECENT DEVELOPMENTSIn December 2023,we announced an ent

205、erprise initiative designed to accelerate our future growth.As part of this initiative,we are taking steps to streamline theorganization.These changes will result in a net reduction of our global workforce.We expect a majority of the future annual wage savings from these actions will bereinvested in

206、 consumer facing activities to drive greater impact for our consumers,sports dimensions and the total marketplace.As of February 29,2024,we expect to recognize pre-tax charges of approximately$450 million,primarily associated with employee severance costs and acceleratedstock-based compensation expe

207、nse,the majority of which will be recognized by the end of fiscal 2024.The related cash payments are expected to take place through thefirst half of fiscal 2025.The expected pre-tax charges are estimates and subject to a number of assumptions.Actual results may differ from current estimates.During t

208、he third quarter of fiscal 2024,we incurred pre-tax charges of$403 million,primarily associated with employee severance costs and accelerated stock-basedcompensation expense.For more information,refer to Note 14 Restructuring within the accompanying Notes to the Unaudited Condensed Consolidated Fina

209、ncialStatements.26Table of ContentsRESULTS OF OPERATIONSTHREE MONTHS ENDEDNINE MONTHS ENDED(Dollars in millions,except per share data)FEBRUARY 29,2024FEBRUARY 28,2023%CHANGEFEBRUARY 29,2024FEBRUARY 28,2023%CHANGERevenues$12,429$12,390 0%$38,756$38,392 1%Cost of sales6,867 7,019-2%21,503 21,695-1%Gro

210、ss profit5,562 5,371 4%17,253 16,697 3%Gross margin44.8%43.3%44.5%43.5%Demand creation expense1,011 923 10%3,194 2,968 8%Operating overhead expense3,215 3,036 6%9,294 9,035 3%Total selling and administrative expense4,226 3,959 7%12,488 12,003 4%of revenues34.0%32.0%32.2%31.3%Interest expense(income)

211、,net(52)(7)(108)22 Other(income)expense,net(16)(58)(101)(283)Income before income taxes1,404 1,477-5%4,974 4,955 0%Income tax expense232 237-2%774 916-16%Effective tax rate16.5%16.0%15.6%18.5%NET INCOME$1,172$1,240-5%$4,200$4,039 4%Diluted earnings per common share$0.77$0.79-3%$2.74$2.57 7%CONSOLIDA

212、TED OPERATING RESULTSREVENUESTHREE MONTHS ENDEDNINE MONTHS ENDED(Dollars in millions)FEBRUARY29,2024FEBRUARY28,2023%CHANGE%CHANGEEXCLUDINGCURRENCYCHANGESFEBRUARY29,2024FEBRUARY28,2023%CHANGE%CHANGEEXCLUDINGCURRENCYCHANGESNIKE,Inc.Revenues:NIKE Brand Revenues by:Footwear$8,162$7,970 2%3%$25,190$24,58

213、8 2%2%Apparel3,290 3,381-3%-3%10,452 10,609-1%-2%Equipment487 403 21%20%1,497 1,297 15%14%Global Brand Divisions9 12-25%-22%34 44-23%-24%Total NIKE Brand Revenues11,948 11,766 2%2%37,173 36,538 2%2%Converse495 612-19%-20%1,602 1,841-13%-14%Corporate(14)12 (19)13 TOTAL NIKE,INC.REVENUES$12,429$12,390

214、 0%0%$38,756$38,392 1%1%Supplemental NIKE Brand RevenuesDetails:NIKE Brand Revenues by:Sales to Wholesale Customers$6,588$6,423 3%3%$20,689$20,693 0%0%Sales through NIKE Direct5,351 5,331 0%0%16,450 15,801 4%4%Global Brand Divisions9 12-25%-22%34 44-23%-24%TOTAL NIKE BRAND REVENUES$11,948$11,766 2%2

215、%$37,173$36,538 2%2%(1)The percent change excluding currency changes represents a non-GAAP financial measure.For additional information,see Use of Non-GAAP Financial Measures.(2)Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geogr

216、aphic operating segment.(3)Corporate revenues primarily consist of foreign currency hedge gains and losses related to revenues generated by entities within the NIKE Brand geographic operating segments and Converse,butmanaged through our central foreign exchange risk management program.(1)(1)(2)(3)(2

217、)27Table of ContentsTHIRD QUARTER OF FISCAL 2024 COMPARED TO THIRD QUARTER OF FISCAL 2023 NIKE,Inc.Revenues for the third quarter of fiscal 2024 were$12.43 billion compared to$12.39 billion for the third quarter of fiscal 2023.On a currency-neutral basis,NIKE,Inc.revenues were flat,as higher revenue

218、s in North America and Greater China,which each increased NIKE,Inc.Revenues by approximately 1 percentagepoint,were offset by lower revenues in Europe,Middle East&Africa(EMEA)and Converse,which each reduced NIKE,Inc.Revenues by approximately 1percentage point.NIKE Brand revenues,which represented ov

219、er 90%of NIKE,Inc.Revenues,increased 2%on a reported and currency-neutral basis.The increase,on a currency-neutral basis,was due to higher revenues in Mens,Kids,Womens and the Jordan Brand.NIKE Brand footwear revenues increased 3%on a currency-neutral basis due to higher revenues in Mens,Womens,Kids

220、 and the Jordan Brand.Unit salesof footwear increased 2%,while higher average selling price(ASP)per pair contributed approximately 1 percentage point of footwear revenue growth.Higher ASP per pair was primarily due to higher full-price ASP,net of discounts,on a wholesale equivalent basis,partially o

221、ffset by lower NIKE Direct ASP.NIKE Brand apparel revenues decreased 3%on a currency-neutral basis due to lower revenues in Mens and Womens,partially offset by higher revenues inKids.Unit sales of apparel decreased 8%,while higher ASP per unit contributed approximately 5 percentage points of apparel

222、 revenue growth.Higher ASPper unit was primarily due to higher full-price,off-price and NIKE Direct ASPs.NIKE Brand wholesale revenues increased 3%compared to the third quarter of fiscal 2023,on a reported and currency-neutral basis.The increase,on a currency-neutral basis,was driven by higher reven

223、ues in Greater China,North America and Asia Pacific&Latin America(APLA),partially offset by lower revenues in EMEA.NIKE Direct revenues were$5.4 billion in the third quarter of fiscal 2024,compared to$5.3 billion for the third quarter of fiscal 2023.On a currency-neutral basis,NIKE Direct revenues w

224、ere flat,driven by comparable store sales growth of 3%and the addition of new stores,offset by NIKE Brand Digital sales declines of 4%.Foradditional information regarding comparable store sales,including the definition,see Comparable Store Sales.NIKE Brand Digital sales were$3.0 billion for thethird

225、 quarter of fiscal 2024 compared to$3.1 billion for the third quarter of fiscal 2023.Within NIKE Direct revenues,there were certain reclassifications madebetween NIKE-owned retail stores and NIKE Brand Digital in the prior period to conform to current period presentation.The reclassifications did no

226、t have a materialimpact on our Unaudited Condensed Consolidated Financial Statements.FIRST NINE MONTHS OF FISCAL 2024 COMPARED TO FIRST NINE MONTHS OF FISCAL 2023 NIKE,Inc.Revenues were$38.8 billion for the first nine months of fiscal 2024,which increased 1%compared to the first nine months of fisca

227、l 2023 on a reported andcurrency-neutral basis.The increase,on a currency-neutral basis,was driven by higher revenues in Greater China and APLA,which each contributed approximately1 percentage point to NIKE,Inc.Revenues.Lower revenues for Converse reduced NIKE,Inc.Revenues by approximately 1 percent

228、age point.NIKE Brand revenues,which represented over 90%of NIKE,Inc.Revenues,increased 2%on a reported and currency-neutral basis.The increase,on a currency-neutral basis,was primarily due to higher revenues in the Jordan Brand,partially offset by lower revenues in Mens and Kids.NIKE Brand footwear

229、revenues increased 2%on a currency-neutral basis,primarily due to higher revenues in the Jordan Brand and Womens,partially offsetby lower revenues in Kids.Unit sales of footwear decreased 2%,while higher ASP per pair contributed approximately 4 percentage points of footwearrevenue growth.Higher ASP

230、per pair was primarily due to higher full-price ASP and a higher mix of NIKE Direct sales,partially offset by lower NIKE DirectASP.NIKE Brand apparel revenues decreased 2%on a currency-neutral basis,primarily due to lower revenues in Mens and Womens.Unit sales of appareldecreased 12%,while higher AS

231、P per unit contributed approximately 10 percentage points of apparel revenue growth.Higher ASP per unit was primarily dueto higher full-price and NIKE Direct ASPs.NIKE Brand wholesale revenues were flat compared to the first nine months of fiscal 2023,on a reported and currency-neutral basis,as high

232、er revenues in GreaterChina and APLA were offset by lower revenues in North America and EMEA.28Table of Contents NIKE Direct revenues increased 4%,on a reported basis,from$15.8 billion for the first nine months of fiscal 2023 to$16.5 billion for the first nine months of fiscal2024.On a currency-neut

233、ral basis,NIKE Direct revenues increased 4%,primarily driven by comparable store sales growth of 6%and the addition of new stores.NIKE Brand Digital sales were$9.4 billion for the first nine months of fiscal 2024 compared to$9.3 billion for the first nine months of fiscal 2023.Within NIKE Directreve

234、nues,there were certain reclassifications made between NIKE-owned retail stores and NIKE Brand Digital in the prior period to conform to current periodpresentation.The reclassifications did not have a material impact on our Unaudited Condensed Consolidated Financial Statements.GROSS MARGINTHREE MONT

235、HS ENDEDNINE MONTHS ENDED(Dollars in millions)FEBRUARY 29,2024FEBRUARY 28,2023%CHANGEFEBRUARY 29,2024FEBRUARY 28,2023%CHANGEGross profit$5,562$5,371 4%$17,253$16,697 3%Gross margin44.8%43.3%150 bps44.5%43.5%100 bpsTHIRD QUARTER OF FISCAL 2024 COMPARED TO THIRD QUARTER OF FISCAL 2023For the third qua

236、rter of fiscal 2024,our consolidated gross margin was 150 basis points higher than the prior year due to:Higher NIKE Brand full-price ASP,net of discounts,on a wholesale equivalent basis(increasing gross margin approximately 180 basis points),primarily due tostrategic pricing actions;Lower NIKE Bran

237、d product costs,on a wholesale equivalent basis(increasing gross margin approximately 50 basis points),primarily due to lower ocean freight ratesand logistics costs,partially offset by higher product input costs;Lower other costs,including warehousing costs(increasing gross margin approximately 50 b

238、asis points);and Favorable changes in net foreign currency exchange rates,including hedges(increasing gross margin approximately 10 basis points).This was partially offset by:Lower margin in our NIKE Direct business(decreasing gross margin approximately 50 basis points);Lower off-price margin,on a w

239、holesale equivalent basis(decreasing gross margin approximately 40 basis points);and Restructuring charges(decreasing gross margin approximately 50 basis points).FIRST NINE MONTHS OF FISCAL 2024 COMPARED TO FIRST NINE MONTHS OF FISCAL 2023For the first nine months of fiscal 2024,our consolidated gro

240、ss margin was 100 basis points higher than the prior year due to:Higher NIKE Brand full-price ASP,net of discounts,on a wholesale equivalent basis(increasing gross margin approximately 270 basis points),primarily due tostrategic pricing actions;and Lower other costs(increasing gross margin approxima

241、tely 10 basis points).This was partially offset by:Higher NIKE Brand product costs,on a wholesale equivalent basis(decreasing gross margin approximately 60 basis points),primarily due to higher product inputcosts largely offset by lower ocean freight rates and logistics costs;and Unfavorable changes

242、 in net foreign currency exchange rates,including hedges(decreasing gross margin approximately 50 basis points);and Lower off-price margin,on a wholesale equivalent basis(decreasing gross margin approximately 30 basis points);Restructuring charges(decreasing gross margin approximately 20 basis point

243、s);and Lower margin in our NIKE Direct business(decreasing gross margin approximately 20 basis points).29Table of ContentsTOTAL SELLING AND ADMINISTRATIVE EXPENSETHREE MONTHS ENDEDNINE MONTHS ENDED(Dollars in millions)FEBRUARY 29,2024FEBRUARY 28,2023%CHANGEFEBRUARY 29,2024FEBRUARY 28,2023%CHANGEDema

244、nd creation expense$1,011$923 10%$3,194$2,968 8%Operating overhead expense3,215 3,036 6%9,294 9,035 3%Total selling and administrative expense$4,226$3,959 7%$12,488$12,003 4%of revenues34.0%32.0%200 bps32.2%31.3%90 bps(1)Demand creation expense consists of advertising and promotion costs,including c

245、osts of endorsement contracts,complimentary products,television,digital and print advertising and media costs,brandevents and retail brand presentation.THIRD QUARTER OF FISCAL 2024 COMPARED TO THIRD QUARTER OF FISCAL 2023Demand creation expense increased 10%reflecting an increase in marketing expens

246、e,primarily due to higher advertising and marketing expense and higher sportsmarketing expense.Changes in foreign currency exchange rates did not have a material impact on Demand creation expense.Operating overhead expense increased 6%primarily due to restructuring charges,partially offset by lower

247、wage-related expenses and technology spend.Changes inforeign currency exchange rates did not have a material impact on Operating overhead expense.FIRST NINE MONTHS OF FISCAL 2024 COMPARED TO FIRST NINE MONTHS OF FISCAL 2023Demand creation expense increased 8%reflecting an increase in marketing expen

248、se,primarily due to higher advertising and marketing expense,higher sports marketingexpense and higher digital marketing.Changes in foreign currency exchange rates did not have a material impact on Demand creation expense.Operating overhead expense increased 3%primarily due to restructuring charges,

249、partially offset by lower technology spend and wage-related expenses.Changes inforeign currency exchange rates did not have a material impact on Operating overhead expense.For more information related to our organizational realignment and related costs,refer to Note 14 Restructuring within the accom

250、panying Notes to the UnauditedCondensed Consolidated Financial Statements.OTHER(INCOME)EXPENSE,NETTHREE MONTHS ENDEDNINE MONTHS ENDED(Dollars in millions)FEBRUARY 29,2024FEBRUARY 28,2023FEBRUARY 29,2024FEBRUARY 28,2023Other(income)expense,net$(16)$(58)$(101)$(283)Other(income)expense,net comprises f

251、oreign currency conversion gains and losses from the remeasurement of monetary assets and liabilities denominated in non-functional currencies and the impact of certain foreign currency derivative instruments,as well as unusual or non-operating transactions that are outside the normalcourse of busin

252、ess.For the third quarter of fiscal 2024,Other(income)expense,net decreased from$58 million of other income,net,to$16 million of other income,net,primarily due togoodwill impairment in the current year and a net unfavorable change in foreign currency conversion gains and losses,including hedges.For

253、the first nine months of fiscal 2024,Other(income)expense,net decreased from$283 million of other income,net,to$101 million of other income,net,primarily dueto a net unfavorable change in foreign currency conversion gains and losses,including hedges,as well as net favorable settlements of legal matt

254、ers in the prior year andgoodwill impairment in the current year.These items were partially offset by the loss recognized in the prior year upon completion of the sale of our entities in Argentinaand Uruguay to a third-party distributor.We estimate the combination of the translation of foreign curre

255、ncy-denominated profits from our international businesses and the year-over-year change in foreigncurrency-related gains and losses included in Other(income)expense,net had a favorable impact of$16 million and an unfavorable impact of$86 million on our Incomebefore income taxes for the third quarter

256、 and first nine months of fiscal 2024.(1)30Table of ContentsINCOME TAXESTHREE MONTHS ENDEDNINE MONTHS ENDEDFEBRUARY 29,2024FEBRUARY 28,2023%CHANGEFEBRUARY 29,2024FEBRUARY 28,2023%CHANGEEffective tax rate16.5%16.0%50 bps15.6%18.5%(290)bpsOur effective tax rate was 16.5%for the third quarter of fiscal

257、 2024,substantially consistent with 16.0%for the third quarter of fiscal 2023.Our effective tax rate was 15.6%for the first nine months of fiscal 2024,compared to 18.5%for the first nine months of fiscal 2023,primarily due to one-time benefitsprovided by the delay of the effective date of certain U.

258、S.foreign tax credit regulations and a reduction in accrued withholding taxes on undistributed foreign earnings.For additional information,refer to Note 5 Income Taxes within the accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.USE OF NON-GAAP FINANCIAL MEASURESThrough

259、out this Quarterly Report on Form 10-Q,we discuss non-GAAP financial measures,which should be considered in addition to,and not in lieu of,the financialmeasures calculated and presented in accordance with U.S.GAAP.References to these measures should not be considered in isolation or as a substitute

260、for otherfinancial measures calculated and presented in accordance with U.S.GAAP and may not be comparable to similarly titled measures used by other companies.Management uses these non-GAAP measures when evaluating the Companys performance,including when making financial and operating decisions.Add

261、itionally,management believes these non-GAAP financial measures provide investors with additional financial information that should be considered when assessing ourunderlying business performance and trends.Earnings Before Interest and Taxes(EBIT):Calculated as Net income before Interest expense(inc

262、ome),net and Income tax expense in the Unaudited CondensedConsolidated Statements of Income.Total NIKE,Inc.EBIT for the three and nine months ended February 29,2024 and February 28,2023 are as follows:THREE MONTHS ENDEDNINE MONTHS ENDED(Dollars in millions)FEBRUARY 29,2024FEBRUARY 28,2023FEBRUARY 29

263、,2024FEBRUARY 28,2023Net income$1,172$1,240$4,200$4,039 Add:Interest expense(income),net(52)(7)(108)22 Add:Income tax expense232 237 774 916 Earnings before interest and taxes$1,352$1,470$4,866$4,977 EBIT margin:Calculated as total NIKE,Inc.EBIT divided by total NIKE,Inc.Revenues.Our EBIT margin cal

264、culation for the three and nine months ended February 29,2024 and February 28,2023 are as follows:THREE MONTHS ENDEDNINE MONTHS ENDED(Dollars in millions)FEBRUARY 29,2024FEBRUARY 28,2023FEBRUARY 29,2024FEBRUARY 28,2023NumeratorEarnings before interest and taxes$1,352$1,470$4,866$4,977 DenominatorTot

265、al NIKE,Inc.Revenues$12,429$12,390$38,756$38,392 EBIT margin10.9%11.9%12.6%13.0%Currency-neutral revenues:Currency-neutral revenues enhance visibility to underlying business trends,excluding the impact of translation arising from foreign currencyexchange rate fluctuations.Currency-neutral revenues a

266、re calculated using actual exchange rates in use during the comparative prior year period in place of theexchange rates in use during the current period.Wholesale equivalent revenues:References to wholesale equivalent revenues are intended to provide context as to the total size of our NIKE Brand ma

267、rket footprint ifwe had no NIKE Direct operations.NIKE Brand wholesale equivalent revenues consist of(1)sales to external wholesale customers and(2)internal sales from ourwholesale operations to our NIKE Direct operations,which are charged at prices comparable to those charged to external wholesale

268、customers.31Table of ContentsCOMPARABLE STORE SALESComparable store sales:This key metric,which excludes NIKE Brand Digital sales,comprises revenues from NIKE-owned in-line and factory stores for which all three ofthe following requirements have been met:(1)the store has been open at least one year,

269、(2)square footage has not changed by more than 15%within the past year and(3)the store has not been permanently repositioned within the past year.Comparable store sales includes revenues from stores that were temporarily closed during theperiod as a result of COVID-19.Comparable store sales represen

270、ts a performance metric that we believe is useful information for management and investors inunderstanding the performance of our established NIKE-owned in-line and factory stores.Management considers this metric when making financial and operatingdecisions.The method of calculating comparable store

271、 sales varies across the retail industry.As a result,our calculation of this metric may not be comparable to similarlytitled metrics used by other companies.OPERATING SEGMENTSAs discussed in Note 11 Operating Segments in the accompanying Notes to the Unaudited Condensed Consolidated Financial Statem

272、ents,our operating segments areevidence of the structure of the Companys internal organization.The NIKE Brand segments are defined by geographic regions for operations participating in NIKE Brandsales activity.The breakdown of Revenues is as follows:THREE MONTHS ENDEDNINE MONTHS ENDED(Dollars in mil

273、lions)FEBRUARY29,2024FEBRUARY28,2023%CHANGE%CHANGEEXCLUDINGCURRENCYCHANGESFEBRUARY29,2024FEBRUARY28,2023%CHANGE%CHANGEEXCLUDINGCURRENCYCHANGESNorth America$5,070$4,913 3%3%$16,118$16,253-1%-1%Europe,Middle East&Africa3,138 3,246-3%-4%10,315 10,068 2%0%Greater China2,084 1,994 5%6%5,682 5,438 4%8%Asi

274、a Pacific&Latin America1,647 1,601 3%4%5,024 4,735 6%6%Global Brand Divisions9 12-25%-22%34 44-23%-24%TOTAL NIKE BRAND11,948 11,766 2%2%37,173 36,538 2%2%Converse495 612-19%-20%1,602 1,841-13%-14%Corporate(14)12 (19)13 TOTAL NIKE,INC.REVENUES$12,429$12,390 0%0%$38,756$38,392 1%1%(1)The percent chang

275、e excluding currency changes represents a non-GAAP financial measure.For additional information,see Use of Non-GAAP Financial Measures.(2)Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment.(3)Corporate rev

276、enues primarily consist of foreign currency hedge gains and losses related to revenues generated by entities within the NIKE Brand geographic operating segments and Converse,butmanaged through our central foreign exchange risk management program.The primary financial measure used by the Company to e

277、valuate performance of individual operating segments is EBIT.As discussed in Note 11 Operating Segmentsin the accompanying Notes to the Unaudited Condensed Consolidated Financial Statements,certain corporate costs are not included in EBIT of our operating segments.(1)(1)(2)(3)32Table of ContentsThe

278、breakdown of EBIT is as follows:THREE MONTHS ENDEDNINE MONTHS ENDED(Dollars in millions)FEBRUARY 29,2024FEBRUARY 28,2023%CHANGEFEBRUARY 29,2024FEBRUARY 28,2023%CHANGENorth America$1,400$1,190 18%$4,360$4,064 7%Europe,Middle East&Africa734 785-6%2,591 2,750-6%Greater China722 702 3%1,761 1,754 0%Asia

279、 Pacific&Latin America471 485-3%1,406 1,470-4%Global Brand Divisions(1,199)(1,160)-3%(3,572)(3,573)0%TOTAL NIKE BRAND2,128 2,002 6%6,546 6,465 1%Converse98 164-40%380 526-28%Corporate(874)(696)-26%(2,060)(2,014)-2%TOTAL NIKE,INC.EARNINGS BEFORE INTERESTAND TAXES1,352 1,470-8%4,866 4,977-2%EBIT margi

280、n10.9%11.9%12.6%13.0%Interest expense(income),net(52)(7)(108)22 TOTAL NIKE,INC.INCOME BEFORE INCOMETAXES$1,404$1,477-5%$4,974$4,955 0%(1)Total NIKE Brand EBIT,Total NIKE,Inc.EBIT and EBIT margin represent non-GAAP financial measures.For additional information,see Use of Non-GAAP Financial Measures.N

281、ORTH AMERICATHREE MONTHS ENDEDNINE MONTHS ENDED(Dollars in millions)FEBRUARY29,2024FEBRUARY28,2023%CHANGE%CHANGEEXCLUDINGCURRENCYCHANGESFEBRUARY29,2024FEBRUARY28,2023%CHANGE%CHANGEEXCLUDINGCURRENCYCHANGESRevenues by:Footwear$3,460$3,322 4%4%$10,950$11,090-1%-1%Apparel1,408 1,419-1%-1%4,555 4,598-1%-

282、1%Equipment202 172 17%18%613 565 8%9%TOTAL REVENUES$5,070$4,913 3%3%$16,118$16,253-1%-1%Revenues by:Sales to Wholesale Customers$2,440$2,323 5%5%$8,114$8,533-5%-5%Sales through NIKE Direct2,630 2,590 2%2%8,004 7,720 4%4%TOTAL REVENUES$5,070$4,913 3%3%$16,118$16,253-1%-1%EARNINGS BEFORE INTEREST ANDT

283、AXES$1,400$1,190 18%$4,360$4,064 7%THIRD QUARTER OF FISCAL 2024 COMPARED TO THIRD QUARTER OF FISCAL 2023 North America revenues increased 3%on a currency-neutral basis due to higher revenues in Kids,Mens,Womens and the Jordan Brand.Wholesale revenuesincreased 5%.NIKE Direct revenues increased 2%,dri

284、ven by comparable store sales growth of 1%and the addition of new stores,as well as digital sales growth of1%.Footwear revenues increased 4%on a currency-neutral basis,primarily due to higher revenues in Kids,Womens and Mens.Unit sales of footwear increased 7%,while lower ASP per pair reduced footwe

285、ar revenues by approximately 3 percentage points.Lower ASP per pair was primarily due to a lower mix of NIKE Direct salesand lower NIKE Direct ASP.Apparel revenues decreased 1%on a currency-neutral basis due to lower revenues in the Jordan Brand and Mens,largely offset by higher revenues in Kids and

286、Womens.Unit sales of apparel decreased 5%,while higher ASP per unit contributed approximately 4 percentage points of apparel revenue growth.Higher ASP perunit was primarily due to higher full-price and NIKE Direct ASPs,partially offset by a lower mix of NIKE Direct sales.(1)(1)(1)33Table of Contents

287、Reported EBIT increased 18%reflecting higher revenues and the following:Gross margin expansion of 290 basis points primarily due to higher full-price ASP,net of discounts,largely due to strategic pricing actions and lower discounts,aswell as lower product costs,reflecting lower ocean freight rates a

288、nd logistics costs,partially offset by higher product input costs.Selling and administrative expense was flat as higher demand creation expense was offset by lower operating overhead expense.The increase in demand creationexpense was primarily due to higher advertising and marketing expense and high

289、er sports marketing expense.The decrease in operating overhead expense wasprimarily due to lower wage-related expenses.FIRST NINE MONTHS OF FISCAL 2024 COMPARED TO FIRST NINE MONTHS OF FISCAL 2023 North America revenues decreased 1%on a currency-neutral basis due to lower revenues in Mens,Womens and

290、 Kids,partially offset by higher revenues in theJordan Brand.Wholesale revenues decreased 5%,reflecting our proactive decisions to prioritize marketplace health in the current year coupled with our liquidation ofexcess inventory in the prior year.NIKE Direct revenues increased 4%,driven by comparabl

291、e sales growth of 3%and the addition of new stores,as well as digitalsales growth of 2%.Footwear revenues decreased 1%on a currency-neutral basis due to lower revenues in Mens,Kids and Womens,partially offset by higher revenues in the JordanBrand.Unit sales of footwear decreased 8%,while higher ASP

292、per pair contributed approximately 7 percentage points of footwear revenue growth.Higher ASP perpair was primarily due to higher full-price ASP and a higher mix of NIKE Direct sales,partially offset by lower NIKE Direct ASP.Apparel revenues decreased 1%on a currency-neutral basis due to lower revenu

293、es in Mens,Womens and the Jordan Brand,partially offset by higher revenues inKids.Unit sales of apparel decreased 10%,while higher ASP per unit contributed approximately 9 percentage points of apparel revenue growth.Higher ASP per unitwas primarily due to higher full-price and NIKE Direct ASPs.Repor

294、ted EBIT increased 7%reflecting lower revenues and the following:Gross margin expansion of 250 basis points primarily due to higher full-price ASP,net of discounts,largely due to strategic pricing actions and lower discounts.Thiswas partially offset by higher product costs,reflecting higher product

295、input costs,partially offset by lower ocean freight rates and logistics costs.Selling and administrative expense increase of 2%driven by higher operating overhead expense and demand creation expense.The increase in operating overheadexpense was primarily due to higher other administrative costs,part

296、ially offset by lower wage-related expenses.Demand creation expense increased primarily due tohigher digital marketing.EUROPE,MIDDLE EAST&AFRICATHREE MONTHS ENDEDNINE MONTHS ENDED(Dollars in millions)FEBRUARY29,2024FEBRUARY28,2023%CHANGE%CHANGEEXCLUDINGCURRENCYCHANGESFEBRUARY29,2024FEBRUARY28,2023%C

297、HANGE%CHANGEEXCLUDINGCURRENCYCHANGESRevenues by:Footwear$1,960$2,011-3%-3%$6,406$6,086 5%3%Apparel994 1,094-9%-10%3,331 3,528-6%-8%Equipment184 141 30%27%578 454 27%23%TOTAL REVENUES$3,138$3,246-3%-4%$10,315$10,068 2%0%Revenues by:Sales to Wholesale Customers$1,966$2,061-5%-5%$6,483$6,506 0%-2%Sales

298、 through NIKE Direct1,172 1,185-1%-4%3,832 3,562 8%3%TOTAL REVENUES$3,138$3,246-3%-4%$10,315$10,068 2%0%EARNINGS BEFORE INTEREST ANDTAXES$734$785-6%$2,591$2,750-6%34Table of ContentsTHIRD QUARTER OF FISCAL 2024 COMPARED TO THIRD QUARTER OF FISCAL 2023 EMEA revenues decreased 4%on a currency-neutral

299、basis,primarily due to lower revenues in Womens,Mens and Kids.Wholesale revenues decreased 5%.NIKEDirect revenues decreased 4%,driven by digital sales declines of 10%,reflecting reduced digital traffic,partially offset by comparable store sales growth of 6%andthe addition of new stores.Footwear reve

300、nues decreased 3%on a currency-neutral basis,primarily due to lower revenues in Kids and Womens.Unit sales of footwear decreased 9%,whilehigher ASP per pair contributed approximately 6 percentage points of footwear revenue growth.Higher ASP per pair was primarily due to higher full-price ASP and ahi

301、gher mix of NIKE Direct sales,partially offset by lower NIKE Direct ASP.Apparel revenues decreased 10%on a currency-neutral basis,primarily due to lower revenues in Mens and Womens.Unit sales of apparel decreased 19%,whilehigher ASP per unit contributed approximately 9 percentage points of apparel r

302、evenue growth.Higher ASP per unit was primarily due to higher full-price and NIKEDirect ASPs.Reported EBIT decreased 6%reflecting lower revenues and the following:Gross margin was flat,as lower product costs,reflecting lower ocean freight rates and logistics costs,and higher full-price ASP,net of di

303、scounts,primarily due tostrategic pricing actions,were offset by unfavorable changes in standard foreign currency exchange rates,lower margin in NIKE Direct and lower off-price margins.Selling and administrative expense increase of 1%driven by higher demand creation expense,partially offset by lower

304、 operating overhead expense.The increase indemand creation expense was primarily due to higher advertising and marketing expense.The decrease in operating overhead expense was primarily due to lowerother administrative costs and wage-related expenses,largely offset by unfavorable changes in foreign

305、currency exchange rates.FIRST NINE MONTHS OF FISCAL 2024 COMPARED TO FIRST NINE MONTHS OF FISCAL 2023 EMEA revenues were flat on a currency-neutral basis,primarily due to lower revenues in Kids and Womens,partially offset by higher revenues in Mens.Wholesalerevenues decreased 2%.NIKE Direct revenues

306、 increased 3%,driven by comparable store sales growth of 10%and the addition of new stores,partially offset bydigital sales declines of 1%.Footwear revenues increased 3%on a currency-neutral basis,primarily due to higher revenues in Mens,partially offset by Kids.Unit sales of footwear decreased4%,wh

307、ile higher ASP per pair contributed approximately 7 percentage points of footwear revenue growth.Higher ASP per pair was primarily due to higher full-priceASP and a higher mix of NIKE Direct sales.Apparel revenues decreased 8%on a currency-neutral basis,primarily due to lower revenues in Mens and Wo

308、mens.Unit sales of apparel decreased 19%,whilehigher ASP per unit contributed approximately 11 percentage points of apparel revenue growth.Higher ASP per unit was primarily due to higher full-price and NIKEDirect ASPs.Reported EBIT decreased 6%reflecting higher revenues and the following:Gross margi

309、n contraction of 150 basis points largely due to unfavorable changes in standard foreign currency exchange rates,partially offset by higher full-price ASP,net of discounts,primarily due to strategic pricing actions and lower product costs,reflecting ocean freight rates and logistics costs.Selling an

310、d administrative expense increase of 6%driven by higher operating overhead expense and demand creation expense.Operating overhead expenseincreased primarily due to unfavorable changes in foreign currency exchange rates,higher wage-related expenses and higher other administrative costs.Demandcreation

311、 expense increased primarily due to higher sports marketing expense and unfavorable changes in foreign currency exchange rates.35Table of ContentsGREATER CHINATHREE MONTHS ENDEDNINE MONTHS ENDED(Dollars in millions)FEBRUARY29,2024FEBRUARY28,2023%CHANGE%CHANGEEXCLUDINGCURRENCYCHANGESFEBRUARY29,2024FE

312、BRUARY28,2023%CHANGE%CHANGEEXCLUDINGCURRENCYCHANGESRevenues by:Footwear$1,547$1,496 3%5%$4,195$4,099 2%6%Apparel498 461 8%10%1,368 1,228 11%16%Equipment39 37 5%9%119 111 7%11%TOTAL REVENUES$2,084$1,994 5%6%$5,682$5,438 4%8%Revenues by:Sales to Wholesale Customers$1,243$1,126 10%12%$3,165$2,862 11%15

313、%Sales through NIKE Direct841 868-3%-1%2,517 2,576-2%1%TOTAL REVENUES$2,084$1,994 5%6%$5,682$5,438 4%8%EARNINGS BEFORE INTEREST ANDTAXES$722$702 3%$1,761$1,754 0%THIRD QUARTER OF FISCAL 2024 COMPARED TO THIRD QUARTER OF FISCAL 2023 Greater China revenues increased 6%on a currency-neutral basis due t

314、o higher revenues in Mens,Womens,Kids and the Jordan Brand.Wholesale revenuesincreased 12%.NIKE Direct revenues decreased 1%due to digital sales declines of 13%,reflecting reduced digital traffic,partially offset by comparable store salesgrowth of 1%and growth in non-comparable store sales.Footwear

315、revenues increased 5%on a currency-neutral basis due to higher revenues in Mens,Womens,Kids and the Jordan Brand.Unit sales of footwearincreased 9%,while lower ASP per pair reduced footwear revenues by approximately 4 percentage points.Lower ASP per pair was primarily due to lower NIKEDirect ASP.App

316、arel revenues increased 10%on a currency-neutral basis,primarily due to higher revenues in Mens.Unit sales of apparel increased 10%,while ASP per unit wasflat,as higher NIKE Direct ASP was offset by lower off-price and full-price ASPs.Reported EBIT increased 3%reflecting higher revenues and the foll

317、owing:Gross margin contraction of approximately 180 basis points,largely due to unfavorable changes in standard foreign currency exchange rates,lower off-price marginsand higher product costs.This was partially offset by higher full-price ASP,net of discounts,primarily due to strategic pricing actio

318、ns.Selling and administrative expense decrease of 4%primarily due to lower operating overhead expense.Operating overhead expense decreased due to lower otheradministrative costs,favorable changes in foreign currency exchange rates and lower wage-related expenses.FIRST NINE MONTHS OF FISCAL 2024 COMP

319、ARED TO FIRST NINE MONTHS OF FISCAL 2023 Greater China revenues increased 8%on a currency-neutral basis due to higher revenues in Mens,Womens,the Jordan Brand and Kids.Wholesale revenuesincreased 15%.NIKE Direct revenues increased 1%due to comparable store sales growth of 5%and growth in non-compara

320、ble store sales,partially offset by digitalsales declines of 11%,reflecting reduced digital traffic.Footwear revenues increased 6%on a currency-neutral basis due to higher revenues in Mens,the Jordan Brand,Womens and Kids.Unit sales of footwearincreased 7%,while lower ASP per pair reduced footwear r

321、evenues by approximately 1 percentage point.Lower ASP per pair was primarily due to lower NIKE DirectASP,partially offset by higher full-price ASP.Apparel revenues increased 16%on a currency-neutral basis,primarily due to higher revenues in Mens and Womens.Unit sales of apparel increased 6%,whilehig

322、her ASP per unit contributed approximately 10 percentage points of apparel revenue growth.Higher ASP per unit was primarily due to higher NIKE Direct,full-price and off-price ASPs as well as a higher mix of full-price sales.36Table of ContentsReported EBIT was flat reflecting higher revenues and the

323、 following:Gross margin contraction of approximately 70 basis points,primarily due to unfavorable changes in standard foreign currency exchange rates and lower off-pricemargins,partially offset by higher full-price ASP,net of discounts,largely due to strategic pricing actions,partially offset by pro

324、duct mix.Selling and administrative expense increase of 3%primarily due to higher operating overhead and demand creation expense.Operating overhead expenseincreased primarily due to higher other administrative costs,partially offset by favorable changes in foreign currency exchange rates.Demand crea

325、tion expenseincreased primarily due to higher advertising and marketing expense,partially offset by favorable changes in foreign currency exchange rates.ASIA PACIFIC&LATIN AMERICATHREE MONTHS ENDEDNINE MONTHS ENDED(Dollars in millions)FEBRUARY29,2024FEBRUARY28,2023%CHANGE%CHANGEEXCLUDINGCURRENCYCHAN

326、GESFEBRUARY29,2024FEBRUARY28,2023%CHANGE%CHANGEEXCLUDINGCURRENCYCHANGESRevenues by:Footwear$1,195$1,141 5%5%$3,639$3,313 10%9%Apparel390 407-4%-3%1,198 1,255-5%-4%Equipment62 53 17%19%187 167 12%12%TOTAL REVENUES$1,647$1,601 3%4%$5,024$4,735 6%6%Revenues by:Sales to Wholesale Customers$939$913 3%3%$

327、2,927$2,792 5%4%Sales through NIKE Direct708 688 3%4%2,097 1,943 8%7%TOTAL REVENUES$1,647$1,601 3%4%$5,024$4,735 6%6%EARNINGS BEFORE INTEREST ANDTAXES$471$485-3%$1,406$1,470-4%We completed the sale of our entity in Chile and our entities in Argentina and Uruguay to third-party distributors in the fi

328、rst and second quarters of fiscal 2023,respectively.The impacts from closing these transactions are included within Corporate and are not reflected in the Asia Pacific&Latin America operating segment results.Thiscompleted the transition of our NIKE Brand businesses within our Central and South Ameri

329、ca(CASA)marketplace,which now reflects a full distributor operating model.THIRD QUARTER OF FISCAL 2024 COMPARED TO THIRD QUARTER OF FISCAL 2023 APLA revenues increased 4%on a currency-neutral basis due to higher revenues across most territories,led by CASA,Mexico,Japan and Southeast Asia&India,parti

330、ally offset by lower revenues in the Pacific territory.Revenues increased due to overall growth in Womens,Mens,Kids and the Jordan Brand.Wholesalerevenues increased 3%.NIKE Direct revenues increased 4%,driven by comparable store sales growth of 12%and the addition of new stores,partially offset bydi

331、gital sales declines of 6%,reflecting reduced digital traffic.Footwear revenues increased 5%on a currency-neutral basis due to higher revenues in Womens,Mens,Kids and the Jordan Brand.Unit sales of footwearincreased 4%,while higher ASP per pair contributed approximately 1 percentage point of footwea

332、r revenue growth.Higher ASP per pair was primarily due to higherfull-price ASP,a higher mix of NIKE Direct sales and higher off-price ASP,partially offset by lower NIKE Direct ASP.Apparel revenues decreased 3%on a currency-neutral basis,primarily due to lower revenues in Mens,partially offset by hig

333、her revenues in the Jordan Brand.Unitsales of apparel decreased 6%,while higher ASP per unit contributed approximately 3 percentage points of apparel revenue growth.Higher ASP per unit wasprimarily due to higher off-price ASP,higher full-price ASP and a higher mix of NIKE Direct sales,partially offset by lower NIKE Direct ASP.Reported EBIT decreased 3%reflecting higher revenues and the following:G