Balance Sheet and Nike

Nike 10-K The author of this report has been asked to review and assess the recent 10-K filing that Nike put forth to their investors, the SEC and the public at large as part of their burden as a public company.

The items and factors that will be assessed when it comes to the Nike and their 10-K will include the format of their balance sheet, whether the author of this report agrees with the presenting of the figure son the 10-K being at fair value, whether Nike has any intangible assets, what is included in the Long-Term Liability balance, the biggest source of cash that Nike realized in their Statement of Cash Flows and the biggest use of cash that is manifested in the same.

While many deem Nike to be in strong financial shape, a drilldown in their 10-K reveals some interesting items. Analysis For the purposes of this brief report, the 10-K that was used for analysis was the 10-K filing as sent as of 5/31/2015 and is displayed on the Securities and Exchange Commission website. Specifically, the filing is for what Nike does under the filing moniker "NKE" and is pursuant to the filing requirements that are required by the Securities Exchange Act of 1934.

As far as the format that is used, the 10-K itself explains that the filing is done in the format of United States Dollars (USD) and that any currencies and such that are not in that current unit are translated to the same. It is noted later in the balance sheet that there are some "arrangements" and such that are not included in the balance sheet.

Nike states that they do this because of certain contracts and agreements as part of their "enforceability of intellectual property rights, coverage for legal issues" and a few other items mentioned. Finally, it is stated that they use what is known as a "Consolidated Balance Sheet." This is specifically mentioned as a foot note in the "Contractual Obligations" section referenced to above (SEC, 2016).

As for whether the use of fair value is something that can be supported or agreed with, it all comes down to estimates and valuations that are based on something that could occur, rather than something that did occur.

So long as the valuations are indeed good faith and truly represent what could happen in the open market, the author of this report cannot really disagree with the use of that method unless a better alternative valuation method clearly exists or it is proven that the "good faith" required, as mentioned above, is not happening. As far as what Nike assets are the most liquid, that would clearly be their cash and cash equivalents, the very first thing mentioned.

Everything else listed including the property/plant items, the short-term investments, accounts receivable and inventory are all not cash. They can be converted to cash but they are not already there, thus cash and cash equivalents is the most liquid (SEC, 2016). Nike does have intangible assets listed. They are listed under the "Total Current Assets" section of the consolidated balance sheet. As described by Note 4, this would include indefinite-lived trademarks that are not subject to amortization, acquired trademarks and other intangible assets.

As for long-term liability assets, what is includ3ed in those would be foreign exchange forwards and options as well as embedded derivatives. This.