Analysis of Revenues
Wholesale revenues are recognized when title and the risks and rewards of ownership have passed to the customer, based on the terms of sale. This occurs upon shipment or upon receipt by the customer depending on the country of the sale and the agreement with the customer. Retail store revenues are recorded at the time of sale and online store revenues are recorded upon delivery to the customer. Provisions for post-invoice sales discounts, returns and miscellaneous claims from customers are estimated and recorded as a reduction to revenue at the time of sale. Post-invoice sales discounts consist of contractual programs with certain customers or discretionary discounts that are expected to be granted to certain customers at a later date. Estimates of discretionary discounts, returns and claims are based on (1) historical rates, (2) specific identification of outstanding claims and outstanding returns not yet received from customers and (3) estimated discounts, returns and claims expected, but not yet finalized with customers. As of May 31, 2017 and 2016, Nike's reserve balances for post-invoice sales discounts, returns and miscellaneous claims were $643 million and $789 million, respectively.
Source: Nike Inc., Annual Report
Nike Inc., Income Statement, Revenues
USD $ in millions
|12 months ended||May 31, 2017||May 31, 2016||May 31, 2015||May 31, 2014||May 31, 2013||May 31, 2012|
|||Revenues by major product lines||34,350||32,376||30,601||27,799||25,313||24,128|
Source: Nike Inc. Annual Reports