Revenue Recognition Accounting Policy

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

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Revenues as Reported

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
Footwear 21,081  19,871  18,318  16,208  14,539  13,426 
Apparel 9,654  9,067  8,636  8,109  6,820  6,333 
Equipment 1,425  1,496  1,632  1,670  1,405  1,202 
Other 2,190  1,942  2,015  1,812  2,549  3,167 
Revenues by major product lines 34,350  32,376  30,601  27,799  25,313  24,128 

Source: Nike Inc. Annual Reports

Item Description The company

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