The SEC Form 10-K of NIKE is reproduced in Appendix C.
REQUIRED:
Review the NIKE SEC Form 10-K, and answer the questions below.
a. Compute NIKE's long-term debt (include deferred income taxes and other long-term liabilities) to total asset ratio for 2008 and 2009. Discuss the change.
b. What interest rates are stated in the various long-term obligations of NIKE?
c. What additional risk applies to the long-term debt of the subsidiary NIKE Logistics YK?
d. Review the financing section of the statement of cash flows and comment on the change in the company's reliance on long-term debt over the last three years.
e. Comment on the comparison between the market value of NIKE's long-term debt and its carrying value on NIKE's balance sheet.
f. How does NIKE reduce the risk of interest rate fluctuations?