UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
☒ | ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT |
OF 1934 |
For the fiscal year ended May 31, 2017
OR
☐ | TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File No. 001-10635
NIKE, Inc.
(Full title of the plan)
401(k) Savings and Profit Sharing Plan for Employees of NIKE, Inc.
(Name of issuer of the securities held pursuant to the plan)
One Bowerman Drive
Beaverton, Oregon 97005
(Address of the plan and address of issuers principal executive offices)
401(k) Savings and Profit Sharing Plan for Employees of NIKE, Inc.
Index
Report of Independent Registered Public Accounting Firm
To the Participants and Administrator
401(k) Savings and Profit Sharing Plan for Employees of NIKE, Inc.
We have audited the accompanying statements of net assets available for benefits of the 401(k) Savings and Profit Sharing Plan for Employees of NIKE, Inc. (the Plan) as of May 31, 2017 and 2016 and the related statement of changes in net assets available for benefits for the year ended May 31, 2017. These financial statements are the responsibility of the Plans management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plans internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets of the Plan at May 31, 2017 and 2016 and the changes in net assets for the year ended May 31, 2017 in conformity with accounting principles generally accepted in the United States of America.
The supplemental information in the accompanying schedule of assets (held at end of year) as of May 31, 2017 and schedule of reportable transactions for the year ended May 31, 2017 have been subjected to audit procedures performed in conjunction with the audits of the Plans financial statements. The supplemental information is the responsibility of the Plans management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with the Department of Labors Rules and Regulations for Reporting under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole.
/s/ Plante & Moran, PLLC
Chicago, Illinois
November 17, 2017
401(k) Savings and Profit Sharing Plan for Employees of NIKE, Inc.
Statements of Net Assets Available for Benefits
May 31, 2017 and 2016
2017 | 2016 | |||||||
Assets |
||||||||
Investments, at fair value |
$ | 3,623,692,941 | $ | 3,259,963,845 | ||||
Receivables |
||||||||
Employer contributions |
67,639,579 | 64,093,418 | ||||||
Notes receivable from participants |
37,436,462 | 33,823,489 | ||||||
Participant contributions |
285,469 | 284,741 | ||||||
Accrued interest and dividends |
4,670 | 944 | ||||||
Due from broker for securities sold |
464,912 | 2,638,456 | ||||||
|
|
|
|
|||||
Total receivables |
105,831,092 | 100,841,048 | ||||||
|
|
|
|
|||||
Total assets |
3,729,524,033 | 3,360,804,893 | ||||||
|
|
|
|
|||||
Liabilities |
||||||||
Other payables |
255,854 | 276,618 | ||||||
Accrued expenses |
128,936 | 171,104 | ||||||
|
|
|
|
|||||
Total liabilities |
384,790 | 447,722 | ||||||
|
|
|
|
|||||
Net assets available for benefits |
$ | 3,729,139,243 | $ | 3,360,357,171 | ||||
|
|
|
|
The accompanying notes are an integral part of these financial statements.
2
401(k) Savings and Profit Sharing Plan for Employees of NIKE, Inc.
Statement of Changes in Net Assets Available for Benefits
Year Ended May 31, 2017
Additions |
||||
Investment income |
||||
Net appreciation in fair value of investments |
$ | 300,120,360 | ||
Interest and dividends |
10,356,187 | |||
|
|
|||
Total investment income |
310,476,547 | |||
Less: Investment expenses |
(66,846 | ) | ||
|
|
|||
Net investment income |
310,409,701 | |||
|
|
|||
Interest income on notes receivable from participants |
1,498,105 | |||
|
|
|||
Contributions |
||||
Employer, net of forfeitures |
143,862,587 | |||
Participant |
125,307,189 | |||
Rollover |
16,731,411 | |||
|
|
|||
Total contributions |
285,901,187 | |||
|
|
|||
Total additions |
597,808,993 | |||
|
|
|||
Deductions |
||||
Benefits paid to participants |
(227,229,600 | ) | ||
Administrative expenses |
(1,797,321 | ) | ||
|
|
|||
Total deductions |
(229,026,921 | ) | ||
|
|
|||
Net increase |
368,782,072 | |||
Net assets available for benefits |
||||
Beginning of year |
3,360,357,171 | |||
|
|
|||
End of year |
$ | 3,729,139,243 | ||
|
|
The accompanying notes are an integral part of these financial statements.
3
401(k) Savings and Profit Sharing Plan for Employees of NIKE, Inc.
Notes to Financial Statements
May 31, 2017 and 2016
1. | Description of the Plan |
The following description of the 401(k) Savings and Profit Sharing Plan for Employees of NIKE, Inc. (the Plan) provides only general information. Participants should refer to the Plan document for a more complete description of the Plans provisions.
General
The Plan was established to provide for the retirement income requirements of and sharing in NIKE, Inc. (the Company) profits by eligible employees of the Company and a retirement savings program for the employees of the Company not covered by a collective bargaining agreement. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA), as amended. Administration of the Plan is performed by the Administrative Subcommittee of the Retirement Committee. The Plan is amended from time to time in order to comply with changes in applicable laws and to make changes in Plan administration.
The Northern Trust Company (Northern Trust or the Trustee) is the trustee and Alight Solutions (f/k/a Aon Hewitt Associates) (Alight or the Record keeper) is the record keeper of the Plans net assets. Self-directed brokerage account assets are held in the custody of Charles Schwab & Co. Inc. (Charles Schwab or the Custodian) and are maintained by the Trustee. The Plans investment decisions are overseen by the Investment Subcommittee of the Retirement Committee. Members of the Retirement Committee are appointed by the Board of Directors of the Company.
Eligibility
All employees, except those employees who are (1) covered by a collective bargaining agreement, (2) living outside the United States and not covered by the Company expatriate program, (3) working at the Companys Memphis Apparel Distribution Center, whose employment is established pursuant to the Companys Seasonal On Call Casual Employee Reserve (SOCCER) program, (4) not common-law employees, such as leased employees and individuals designated by NIKE as independent contractors, or (5) residing in Puerto Rico and working at the Puerto Rico facility, become eligible to receive profit sharing contributions on the first day of the Plan fiscal year coinciding with or immediately preceding completion of one year of employment with at least 1,000 hours of service. Employees are eligible to participate in the 401(k) portion of the Plan on the first day of employment.
Contributions
Participants may contribute up to 50% of their pre-tax annual compensation to the Plan, subject to annual individual deferral limitations under the United States Internal Revenue Code (IRC). Participants who have attained age 50 before the end of the Plan year are eligible to make catch-up contributions, as defined by the IRC. Participants may also contribute amounts representing distributions from other qualified defined contribution plans as well as after-tax contributions from their current compensation. Additionally, the Company will match participant pre-tax contributions at a rate of 100% of the first 5% of the participants eligible pay that is contributed to their account.
4
401(k) Savings and Profit Sharing Plan for Employees of NIKE, Inc.
Notes to Financial Statements
May 31, 2017 and 2016
Prior to May 13, 2011, the Company match contributions related to the Plans 401(k) feature were invested in the NIKE stock fund which is comprised of NIKE, Inc. Class B common stock and a small residual cash balance. As of June 1, 2001, these match contributions became subject to participant self-direction after the initial investment in the company stock fund was made to the Plan. Participants could redeem their shares in the company stock fund and reinvest the cash into other managed funds. As of May 13, 2011, the Company match followed participants fund selections and the NIKE stock fund became one of the investment choices. No more than 10% of a participants deferral and corresponding match can go into the NIKE stock fund and a participant can only transfer a portion of his or her existing account balance to purchase the NIKE stock fund if the percentage of their account balance invested in the NIKE stock fund is less than or equal to 20%. Transfers out of the NIKE stock fund are permitted at any time.
Under the Plans profit sharing features, the Company may make discretionary annual contributions as designated by the Companys Board of Directors. However, this amount cannot be greater than the amount allowable as a tax deduction under the IRC. The annual contributions will be funded no later than the date the Companys federal income tax return is filed.
Profit sharing contributions are invested in various fixed income and equity funds similar to those offered under the Plans 401(k) features. Investments held by the Plan on behalf of participants related to profit sharing contributions are nonparticipant-directed. In the nonparticipant-directed program, the Investment Subcommittee, under the guidance of investment managers, directs the specific investments held by the Plan. See Note 6 for applicable disclosures. Investments held by the Plan on behalf of participants related to 401(k) contributions are participant-directed. In the participant-directed program, the individual participant selects the investments for his or her individual account.
Participant Accounts
Separate individual 401(k) and profit sharing accounts are maintained for each participant. Each participants 401(k) account is credited with the participants contributions and rollovers, the Companys matching contributions, Plan expenses and an allocation of the Plans investment income or losses based upon the participants election of investment options. Participants direct the investment of their contributions into various investment options offered by the Plan.
An eligible profit sharing participant is entitled to an annual allocation of the employer profit sharing contribution and former participant profit sharing forfeitures after restoration of previously forfeited accounts. Employer profit sharing contributions and former participant forfeitures are allocated in the proportion of the participants annual compensation to compensation of all participants subject to the IRC Section 415 defined maximum limitations. Participants do not direct the investment of profit sharing contributions.
Profit sharing investment income or losses and Plan expenses are allocated daily based on a ratio of each participants profit sharing account balance to the total profit sharing account balances.
The total benefit to which a participant is entitled is the benefit that can be provided from the participants vested 401(k) and profit sharing accounts.
Vesting
Participants in the 401(k) portion of the Plan are immediately vested in their elective, rollover, and Company matching contributions, plus actual earnings thereon. The Company contributions into the profit sharing portion of the Plan vest at 25% per year after completing two years of service, and vesting increases 25% for each additional year of service until fully vested after five years. Participants in the profit sharing portion of the Plan become fully vested in the Companys contributions in the event of total and permanent disability, death, attainment of 65 years of age, or termination of the Plan.
5
401(k) Savings and Profit Sharing Plan for Employees of NIKE, Inc.
Notes to Financial Statements
May 31, 2017 and 2016
Forfeitures
Upon a participants termination, the unvested portion of the participants profit sharing account is forfeited. Profit sharing forfeitures may be used to reduce future employer contributions or be allocated back to active participants at the Companys discretion. During the year ended May 31, 2017, profit sharing forfeitures of $1,751,213 were used to reduce employer contributions. At May 31, 2017 and 2016, accumulated profit sharing forfeitures totaled $1,900,988 and $1,751,213, respectively.
Notes Receivable From Participants
Participants may borrow a portion of their elective and rollover contributions by applying to the Plans record keeper. Participants may borrow from their accounts amounts equal to the lesser of 50% of their vested account balance or $50,000 reduced by the balance of any outstanding loans. The term of the loan repayments ranges up to five years for general purpose loans and up to ten years for the purchase of a primary residence. The loans are secured by the balance in the participants account and bear interest at the prime rate plus one percentage point. Principal and interest are paid ratably through bi-weekly payroll deductions.
Benefit Payments
On termination of service due to death, disability, hardship, resignation, discharge and retirement, a participant is eligible to receive payments in the amount equal to the value of the participants vested interest in his or her account.
Vested benefits are distributed to participants in a lump-sum payment upon termination or are transferred to another qualified account. Participants with vested benefits greater than $1,000 can elect to receive a distribution or leave their balance in the Plan until reaching the age of 65. Participants may apply to the Plans record keeper to withdraw their voluntary 401(k) contributions in the event the participant is over age 59-1/2, or the participant has a financial hardship as stipulated in the Plan provisions. No withdrawals may be made from the unvested portion of the Companys profit sharing contributions or earnings thereon.
Plan Termination
Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, the accounts of all participants would become fully vested. The net assets of the Plan would be distributed among the participants and beneficiaries of the Plan in proportion to their interests after proper allocation of any Plan expenses incurred upon termination.
2. | Significant Accounting Policies |
Basis of Accounting
The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP).
Investment Valuation and Income Recognition
The Companys Retirement Committee determines the Plans valuation policies utilizing information provided by the Trustee and collective trust funds.
Investments held by the Plan are stated at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. See Note 3 for further discussion of fair value measurements.
6
401(k) Savings and Profit Sharing Plan for Employees of NIKE, Inc.
Notes to Financial Statements
May 31, 2017 and 2016
Investments are purchased and sold at the fair value of the underlying investments and receive the interest and dividend earnings of the underlying investments. Purchases and sales of securities are recorded on a trade date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. The Plan presents, in the Statement of Changes in Net Assets Available for Benefits, the net appreciation or depreciation in the fair value of its investments, which consists of the realized gains or losses and the unrealized appreciation or depreciation on those investments.
Notes Receivable From Participants
Notes receivable from participants are measured at their unpaid principal balance plus any accrued but unpaid interest. Interest income is recorded on the accrual basis. Related fees are recorded as administrative expenses and are expensed when they are incurred. No allowance for credit losses has been recorded as of May 31, 2017 or 2016. If a participant ceases to make loan repayments and the plan administrator deems the participant loan to be in default, the participant loan balance is reduced and a benefit payment is recorded.
Benefits Payable
Benefits are recorded when paid. Accordingly, benefits payable to persons that have elected to withdraw from the Plan but not yet paid have not been accrued. At May 31, 2017 and 2016, there were $97,197 and $390,384, respectively, payable to participants.
Expenses
Expenses of administering the Plan and those which are directly related to investment transactions are paid out of the assets of the Plan. Certain administrative expenses are paid for by the Company.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of additions to and deductions from net assets available for benefits during the reporting period. Actual results could differ from those estimates.
Risks and Uncertainties
The Plan offers investments in securities that are exposed to various risks, such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities, and thus the net asset value (NAV) of the funds, will occur in the near term and that such changes could materially affect participants account balances and the amount reported in the Statements of Net Assets Available for Benefits and the Statement of Changes in Net Assets Available for Benefits. Market values of investments may decline for a number of reasons, including changes in prevailing market and interest rates, increases in defaults and credit rating downgrades. The fair values assigned to the investments by the Plan are based upon available information believed to be reliable, which may be affected by conditions in the financial markets. The Plan may not be able to sell its investments when it desires to do so or to realize what it perceives to be its fair value in the event of a sale.
7
401(k) Savings and Profit Sharing Plan for Employees of NIKE, Inc.
Notes to Financial Statements
May 31, 2017 and 2016
Recently Adopted Accounting Guidance
During 2017, the Plan adopted Accounting Standards Update (ASU) Nos. 2015-07, Disclosures for Investments In Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent) and 2015-12, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), and Health and Welfare Benefit Plans (Topic 965) I. Fully Benefit-Responsive Investment Contracts, II. Plan Investment Disclosures, and III. Measurement Date Practical Expedient. ASU No. 2015-07 amended ASC 820, Fair Value Measurements, and removed the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share as a practical expedient. Part II of ASU No. 2015-12 was applicable to the Plan and modified the investment disclosures under ASC 820 and 962. These standards were adopted retrospectively, and had no impact on the Plans reported net assets or changes in net assets.
During 2017, the Plan adopted ASU No. 2016-01, Financial Instruments Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities. ASU No. 2016-01 amended ASC 825, Financial Instruments, and eliminated disclosure of the fair value of financial instruments not recorded at fair value previously required under ASC 825. This standard was adopted retrospectively and had no impact on the Plans net assets or changes in net assets.
3. | Fair Value Measurement |
In determining fair value, the Plan uses a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are described below:
Level l | Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Plan has the ability to access. |
Level 2 | Inputs to the valuation methodology include: |
| Quoted price for similar assets or liabilities in active markets; |
| Quoted price for identical or similar assets or liabilities in inactive markets; |
| Inputs, other than quoted prices, that are observable for the asset or liability; |
| Inputs that are derived principally from, or corroborated by, observable market data by correlation or other means. |
If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.
Level 3 | Inputs to the valuation methodology are unobservable and significant to the fair value measurement. |
The assets or liabilitys fair value measurement level within the fair value hierarchy is based on the most conservative level of input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.
The valuation methods described below may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in different fair value measurement at the reporting date.
Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at May 31, 2017 and 2016.
Common Stock: Investments in common stock listed on a national securities exchange and over-the-counter securities are valued at the last reported sale price on the valuation date or, if no sales are reported for that day, the last published sale price.
8
401(k) Savings and Profit Sharing Plan for Employees of NIKE, Inc.
Notes to Financial Statements
May 31, 2017 and 2016
Registered Investment Companies: Registered investment companies (or mutual funds) are valued at the daily closing price as reported by the fund. Mutual funds held by the Plan are open-end mutual funds that are registered with the Securities and Exchange Commission. These funds are required to publish their daily NAV and to transact at that price. The mutual funds held by the Plan are deemed to be actively traded.
Collective trust funds: Collective trust funds represent investments held in pooled funds. The Plans interests in the collective trust funds are valued based on the NAV provided by the fund sponsor. The accuracy of the NAV is verified using the audited financial statements of the collective trust funds. The NAV, as provided by the trustee, is used as a practical expedient to estimate fair value. The NAV is based on the fair value of the underlying investments held by the fund less its liabilities. This practical expedient is not used when it is determined to be probable that the fund will sell the investment for an amount different than the reported NAV. Participant transactions (purchases and sales) may occur daily. Were the Plan to initiate a full redemption of the collective trust, the investment advisor reserves the right to temporarily delay withdrawal from the trust in order to ensure that securities liquidations will be carried out in an orderly business manner. There are no significant redemption restrictions or unfunded commitments on these investments.
Interest-bearing Cash: These investments are valued at fair value based on quoted market prices.
Self-directed brokerage account: The Plan allows participants to invest in self-directed brokerage accounts. The self-directed brokerage accounts include investment in publicly traded registered investment companies.
The Plans policy is to recognize transfers between levels of the fair value hierarchy as of the actual date of the event of change in circumstances that caused the transfer. There were no significant transfers between levels of the fair value hierarchy during the year ending May 31, 2017.
The following tables set forth by level, within the fair value hierarchy, the Plans assets at fair value as of May 31, 2017 and 2016:
Level l | Level 2 | Level 3 | Total | |||||||||||||
Common Stock |
$ | 676,597,908 | $ | | $ | | $ | 676,597,908 | ||||||||
Self-directed brokerage accounts |
73,689,271 | | | 73,689,271 | ||||||||||||
Registered investment companies |
73,443,221 | | | 73,443,221 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
823,730,400 | 823,730,400 | |||||||||||||||
Fair value measured at net asset value per share Collective trust funds |
2,799,962,541 | |||||||||||||||
Total assets at fair value |
$ | 3,623,692,941 | ||||||||||||||
|
|
|||||||||||||||
Level l | Level 2 | Level 3 | Total | |||||||||||||
Common Stock |
$ | 792,319,719 | $ | | $ | | $ | 792,319,719 | ||||||||
Self-directed brokerage accounts |
60,357,348 | | | 60,357,338 | ||||||||||||
Registered investment companies |
62,296,329 | | | 62,296,329 | ||||||||||||
Interest bearing cash |
10,031 | | | 10,031 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
914,983,417 | | | 914,983,417 | |||||||||||||
Fair value measured at net asset value per share Collective trust funds |
2,344,980,428 | |||||||||||||||
Total assets at fair value |
$ | 3,259,963,845 | ||||||||||||||
|
|
9
401(k) Savings and Profit Sharing Plan for Employees of NIKE, Inc.
Notes to Financial Statements
May 31, 2017 and 2016
4. | Party-in-Interest Transactions |
The Plans investments represent funds invested in, or maintained by, Northern Trust and Charles Schwab. Northern Trust is the trustee of the Plan assets and Charles Schwab is the custodian of selected assets and, therefore, these investments represent exempt party-in-interest transactions.
Certain Plan investments are shares of Company common stock. For the year ended May 31, 2017 and 2016, the Plan purchased 605,244 and 751,343 shares of NIKE, Inc. Class B common stock, respectively, at a cost of $12,471,713 and $12,852,936, respectively. For the same years ended, the Plan sold 2,185,250 and 2,093,897 shares of NIKE, Inc. Class B common stock, respectively, with proceeds of $77,492,139 and $64,289,847, respectively. At May 31, 2017 and 2016, the Plan held $676,596,880 (12,768,388 shares) and $792,318,316 (14,348,394 shares), respectively, of NIKE, Inc. Class B common stock.
5. | Plan Tax Status |
The United States Internal Revenue Service has determined and informed the Plan by letter dated December 16, 2013 that the Plan is designed in accordance with applicable sections of the IRC. Although the Plan has been amended since receiving the determination letter, the Plan administrator believes that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC.
6. | Nonparticipant-directed Investments |
Information about the net assets at May 31 and the significant components of the changes in net assets for the year ended May 31 relating to the nonparticipant-directed investments is as follows:
2017 | 2016 | |||||||
Net assets |
||||||||
Collective trust funds |
$ | 691,075,112 | $ | 604,656,620 | ||||
Employer receivable |
67,513,999 | 63,974,081 | ||||||
Registered investment companies |
73,443,221 | 62,296,329 | ||||||
Accrued interest and dividends |
3,602 | 641 | ||||||
Other liability |
(187 | ) | (275,279 | ) | ||||
Common stock |
1,028 | 1,402 | ||||||
Due from broker for securities sold |
| 2,393,032 | ||||||
Accrued expenses |
(38,311 | ) | (48,509 | ) | ||||
|
|
|
|
|||||
Total net assets |
$ | 831,998,464 | $ | 732,998,317 | ||||
|
|
|
|
10
401(k) Savings and Profit Sharing Plan for Employees of NIKE, Inc.
Notes to Financial Statements
May 31, 2017 and 2016
Year Ended May 31, 2017 |
||||
Changes in net assets |
||||
Net appreciation in fair value of investments |
$ | 79,028,784 | ||
Employer contributions |
67,513,999 | |||
Interest and dividends |
1,093,623 | |||
Administrative and investment expenses |
(468,584 | ) | ||
Benefits paid to participants |
(48,167,675 | ) | ||
|
|
|||
Increase in net assets |
$ | 99,000,147 | ||
|
|
7. | Reconciliation of Financial Statements to Form 5500 |
The following is a reconciliation of net assets available for benefits per the financial statements to the Form 5500 at May 31, 2017 and 2016:
2017 | 2016 | |||||||
Net assets available for benefits per the financial statements |
$ | 3,729,139,243 | $ | 3,360,357,171 | ||||
Benefits payable |
(97,197 | ) | (390,384 | ) | ||||
|
|
|
|
|||||
Net assets available for benefits per Form 5500 |
$ | 3,729,042,046 | $ | 3,359,966,787 | ||||
|
|
|
|
The following is a reconciliation of the net increase in net assets available for benefits per the financial statements to the Form 5500 at May 31, 2017:
Net increase in net assets per the financial statements |
$ | 368,782,072 | ||
Benefits payable at May 31, 2017 |
(97,197 | ) | ||
Benefits payable at May 31, 2016 |
390,384 | |||
|
|
|||
Net increase in net assets per Form 5500 |
$ | 369,075,259 | ||
|
|
8. | Subsequent Events |
Subsequent to year-end, in June 2017, the plan switched record keeper from Alight to Fidelity Investments.
11
401(k) Savings and Profit Sharing Plan for Employees of NIKE, Inc.
Schedule H, Line 4i Schedule of Assets (Held at End of Year)
May 31, 2017
(a) | (b) | (c) | (d) | (e) | ||||||||||
Identity of Issue, Borrower, | Current | |||||||||||||
Lessor or Similar Party | Description of Investments | Cost (1) | Value | |||||||||||
Participant directed |
||||||||||||||
Self-directed Brokerage Accounts |
Registered investment company | $ | 73,689,271 | |||||||||||
|
|
|||||||||||||
* |
NIKE, Inc., Class B Common Stock |
Common stock | 676,596,880 | |||||||||||
|
|
|||||||||||||
* |
NT Collective Aggregate Bond Index Fund |
Collective trust fund | 316,192,086 | |||||||||||
* |
NT Collective All Country World Ex-US Index Fund |
Collective trust fund | 360,415,326 | |||||||||||
* |
NT Collective Government STIF |
Collective trust fund | 2,973,545 | |||||||||||
* |
NT Collective Russell 2000 Equity Index Fund |
Collective trust fund | 366,885,507 | |||||||||||
* |
NT Collective S&P 500 Equity Index Fund |
Collective trust fund | 823,062,948 | |||||||||||
Morley Stable Value Fund |
Collective trust fund | 239,358,017 | ||||||||||||
|
|
|||||||||||||
2,108,887,429 | ||||||||||||||
|
|
|||||||||||||
Total participant directed investments | 2,859,173,580 | |||||||||||||
|
|
|||||||||||||
Nonparticipant-directed |
||||||||||||||
Powershares Exchange-Traded Fund Intl |
Registered investment company | 33,677,327 | 31,218,210 | |||||||||||
PIMCO Commodities Plus Strategy Fund |
Registered investment company | 48,455,809 | 34,370,382 | |||||||||||
Vanguard Whitehall Emerging Markets Govt Bond Index Fund |
Registered investment company | 7,677,108 | 7,854,629 | |||||||||||
|
|
|
|
|||||||||||
Total registered investment company | 89,810,245 | 73,443,221 | ||||||||||||
|
|
|
|
|||||||||||
* |
NT Collective Aggregate Bond Index Fund |
Collective trust fund | 64,837,587 | 82,016,405 | ||||||||||
* |
NT Collective Global Real Estate Index Fund |
Collective trust fund | 22,654,099 | 38,146,649 | ||||||||||
* |
NT Collective Government STIF |
Collective trust fund | 4,686,141 | 4,686,141 | ||||||||||
* |
NT Collective All Country World Ex-US Investable Market Index Fund |
Collective trust fund | 162,440,030 | 191,364,122 | ||||||||||
* |
NT Collective Russell 3000 Equity Index Fund |
Collective trust fund | 209,006,805 | 275,859,659 | ||||||||||
* |
NTGI Collective Short Term Government Fund |
Collective trust fund | 29,189,293 | 29,596,834 | ||||||||||
* |
NT Collective World Government Bond Index Fund |
Collective trust fund | 66,881,341 | 69,405,302 | ||||||||||
|
|
|
|
|||||||||||
Total collective trust funds | 559,695,296 | 691,075,112 | ||||||||||||
|
|
|
|
|||||||||||
Maritime Inc. Common Stock |
Common stock | 276,469 | 1,028 | |||||||||||
|
|
|
|
|||||||||||
Total nonparticipant-directed investments | $ | 649,782,010 | $ | 764,519,361 | ||||||||||
|
|
|
|
|||||||||||
Total investments | $ | 3,623,692,941 | ||||||||||||
|
|
|||||||||||||
* |
Notes Receivable from Participants |
Interest Rate: 4.25% - 9.25% | $ | 37,436,462 | ||||||||||
* |
Party-in-interest. |
|||||||||||||
(1) |
Cost information is not required for participant directed assets. |
13
401(k) Savings and Profit Sharing Plan for Employees of NIKE, Inc.
Schedule H, Line 4j Schedule of Reportable Transactions
Year Ended May 31, 2017
(a) | (b) | (c) | (d) | (g) | (h) | (i) | ||||||||||||||||||
Current Value | ||||||||||||||||||||||||
Description of Asset | of Asset on | Net | ||||||||||||||||||||||
(Include Interest Rate and | Purchase | Selling | Cost of | Transaction | Gain | |||||||||||||||||||
Identity of Party Involved | Maturity Case of a Loan) | Price | Price | Asset | Date | (Loss) | ||||||||||||||||||
The Northern Trust Company | ||||||||||||||||||||||||
Series of Transactions | ||||||||||||||||||||||||
* |
NTGI COLTV Government STIF |
Collective Trust Fund | 86,971,705 | 86,971,705 | 86,971,705 | | ||||||||||||||||||
* |
NTGI COLTV Government STIF | Collective Trust Fund | 84,622,386 | 84,622,386 | 84,622,386 | | ||||||||||||||||||
* |
Party-in-interest. |
14
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the NIKE, Inc. Retirement Committee has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.
401(k) Savings and Profit Sharing Plan for Employees of NIKE, Inc. | ||||||
Date: November 17, 2017 | By: | /s/ Nitesh Sharan | ||||
Nitesh Sharan Vice President of Investor Relations & Treasury, Chair Investment Subcommittee of the NIKE Retirement Plan |
EXHIBIT INDEX
Exhibit No. |
Description | |
23.1 | Consent of Plante & Moran, PLLC Independent Registered Public Accounting Firm |