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Operating Segments
 6 Months Ended
Nov. 30, 2015
Segment Reporting [Abstract]  
Operating Segments
NOTE 12 — Operating Segments
The Company’s operating segments are evidence of the structure of the Company's internal organization. The NIKE Brand segments are defined by geographic regions for operations participating in NIKE Brand sales activity.
Each NIKE Brand geographic segment operates predominantly in one industry: the design, development, marketing and selling of athletic footwear, apparel and equipment. The Company’s reportable operating segments for the NIKE Brand are: North America, Western Europe, Central & Eastern Europe, Greater China, Japan and Emerging Markets, and include results for the NIKE, Jordan and Hurley brands. The Company’s NIKE Brand Direct to Consumer operations are managed within each geographic operating segment. Converse is also a reportable segment for the Company and operates in one industry: the design, marketing, licensing and selling of casual sneakers, apparel and accessories.
Global Brand Divisions is included within the NIKE Brand for presentation purposes to align with the way management views the Company. Global Brand Divisions primarily represent NIKE Brand licensing businesses that are not part of a geographic operating segment and demand creation, operating overhead, and product creation and design expenses that are centrally managed for the NIKE Brand.
Corporate consists largely of unallocated general and administrative expenses, including expenses associated with centrally managed departments; depreciation and amortization related to the Company’s headquarters; unallocated insurance, benefit and compensation programs, including stock-based compensation; and certain foreign currency gains and losses, including certain hedge gains and losses.
The primary financial measure used by the Company to evaluate performance of individual operating segments is earnings before interest and taxes (commonly referred to as “EBIT”), which represents Net income before Interest expense (income), net and Income tax expense in the Unaudited Condensed Consolidated Statements of Income. Reconciling items for EBIT represent corporate expense items that are not allocated to the operating segments for management reporting.
As part of the Company's centrally managed foreign exchange risk management program, standard foreign currency rates are assigned twice per year to each NIKE Brand entity in the Company's geographic operating segments and Converse. These rates are set approximately nine months in advance of the future selling season based on average market spot rates in the calendar month preceding the date they are established. Inventories and Cost of sales for geographic operating segments and Converse reflect use of these standard rates to record non-functional currency product purchases in the entity’s functional currency. Differences between assigned standard foreign currency rates and actual market rates are included in Corporate, together with foreign currency hedge gains and losses generated from the Company's centrally managed foreign exchange risk management program and other conversion gains and losses.
Accounts receivable, net, Inventories and Property, plant and equipment, net for operating segments are regularly reviewed by management and are therefore provided below.
Certain prior year amounts have been reclassified to conform to fiscal 2016 presentation.
 
 
Three Months Ended November 30,
 
Six Months Ended November 30,
(In millions)
 
2015
 
2014
 
2015
 
2014
REVENUES
 
 
 
 
 
 
 
 
North America
 
$
3,547

 
$
3,241

 
$
7,346

 
$
6,754

Western Europe
 
1,299

 
1,312

 
2,940

 
3,025

Central & Eastern Europe
 
326

 
347

 
727

 
740

Greater China
 
938

 
758

 
1,824

 
1,437

Japan
 
205

 
199

 
384

 
359

Emerging Markets
 
984

 
1,075

 
1,950

 
2,009

Global Brand Divisions
 
18

 
27

 
44

 
56

Total NIKE Brand
 
7,317

 
6,959

 
15,215

 
14,380

Converse
 
398

 
434

 
953

 
1,009

Corporate
 
(29
)
 
(13
)
 
(68
)
 
(27
)
TOTAL NIKE CONSOLIDATED REVENUES
 
$
7,686

 
$
7,380

 
$
16,100

 
$
15,362

EARNINGS BEFORE INTEREST AND TAXES
 
 
 
 
 
 
 
 
North America
 
$
882

 
$
785

 
$
1,924

 
$
1,755

Western Europe
 
307

 
261

 
792

 
665

Central & Eastern Europe
 
76

 
57

 
174

 
126

Greater China
 
327

 
258

 
657

 
476

Japan
 
47

 
29

 
83

 
40

Emerging Markets
 
241

 
236

 
499

 
392

Global Brand Divisions
 
(625
)
 
(554
)
 
(1,249
)
 
(1,088
)
Total NIKE Brand
 
1,255

 
1,072

 
2,880

 
2,366

Converse
 
85

 
88

 
232

 
274

Corporate
 
(365
)
 
(273
)
 
(688
)
 
(515
)
Total NIKE Consolidated Earnings Before Interest and Taxes
 
975

 
887

 
2,424

 
2,125

Interest expense (income), net
 
5

 
9

 
9

 
18

TOTAL NIKE CONSOLIDATED EARNINGS BEFORE TAXES
 
$
970

 
$
878

 
$
2,415

 
$
2,107


 
 
As of November 30,
 
As of May 31,
(In millions)
 
2015
 
2015
ACCOUNTS RECEIVABLE, NET
 
 
 
 
North America
 
$
1,764

 
$
1,737

Western Europe
 
372

 
344

Central & Eastern Europe
 
206

 
242

Greater China
 
116

 
84

Japan
 
102

 
134

Emerging Markets
 
536

 
461

Global Brand Divisions
 
87

 
88

Total NIKE Brand
 
3,183

 
3,090

Converse
 
241

 
258

Corporate
 
13

 
10

TOTAL ACCOUNTS RECEIVABLE, NET
 
$
3,437

 
$
3,358

INVENTORIES
 
 
 
 
North America
 
$
2,389

 
$
2,207

Western Europe
 
754

 
699

Central & Eastern Europe
 
158

 
169

Greater China
 
356

 
249

Japan
 
113

 
94

Emerging Markets
 
464

 
528

Global Brand Divisions
 
35

 
32

Total NIKE Brand
 
4,269

 
3,978

Converse
 
242

 
237

Corporate
 
89

 
122

TOTAL INVENTORIES
 
$
4,600

 
$
4,337

PROPERTY, PLANT AND EQUIPMENT, NET
 
 
 
 
North America
 
$
702

 
$
632

Western Europe
 
490

 
451

Central & Eastern Europe
 
47

 
47

Greater China
 
234

 
254

Japan
 
205

 
205

Emerging Markets
 
105

 
103

Global Brand Divisions
 
510

 
484

Total NIKE Brand
 
2,293

 
2,176

Converse
 
125

 
122

Corporate
 
817

 
713

TOTAL PROPERTY, PLANT AND EQUIPMENT, NET
 
$
3,235

 
$
3,011