The SEC Form 10-K of NIKE is reproduced in Appendix C.
REQUIRED:
Review Nike SEC From 10-K, and answer the following questions.
a. Does NIKE carry investment portfolios in trading and available-for-sale securities?
b. Has NIKE exercised the fair market value option for any of these investments? If so, which ones, and what level of measurement (1, 2, or 3) did NIKE rely upon to estimate the market values?
c. Did NIKE have any major acquisitions during 2008? Replicate the entry NIKE recorded to account for this acquisition.
d. How much goodwill did NIKE report on its 2009 and 2008 balance sheets? From 2008 to 2009, NIKE had a decrease in goodwill. What does this indicate about management's evaluation of the future of the companies it previously purchased? Is there any evidence on the 2009 income statement?
e. Why does a goodwill impairment appear in the operating section of the 2009 statement of cash flows?
f. Does NIKE have significant investments in companies in which it does not have control?