Discounted Cash Flow Valuation - Nike (in millions of dollars except
EXHIBIT 1 OF CASE
Actual Consolidated Income Statements for
1995 1996 1997 1998
Revenues $ 4,760.8 $ 6,470.6 $ 9,186.5 $ 9,553.1
Cost of Goods Sold $ 2,865.3 $ 3,906.7 $ 5,503.0 $ 6,065.5
Gross Profit $ 1,895.5 $ 2,563.9 $ 3,683.5 $ 3,487.6
Selling & administrative 1209.80 1588.60 2303.70 2623.80
Operating Income 685.70 975.30 1379.80 863.80
Interest Expense 24.20 39.50 52.30 60.00
Other Expenses 11.70 36.70 32.30 20.90
Restructuringcharge, net 0.00 0.00 0.00 129.90
Income before taxes 649.80 899.10 1295.20 653.00
Income Taxes 250.20 345.90 499.40 253.40
NET INCOME 399.60 553.20 795.80 399.60
Diluted earnings per common share 1.36 1.88 2.68 1.35
Avg Shares outstanding 294.00 293.60 297.00 296.00
Growth %
Revenue 35.9% 42.0% 4.0%
Operating Income 42.2% 41.5% -37.4%
Net Income 38.4% 43.9% -49.8%
Margins %
Gross Margin 39.6% 40.1% 36.5%
Operating Margin 15.1% 15.0% 9.0%
Net Margin 8.5% 8.7% 4.2%
Effective Tax rate 38.5% 38.6% 38.8%
,millions of dollars except per-share data)
1999 2000 '2001
$ 8,776.9 $ 8,995.1 $ 9,488.8
$ 5,493.5 $ 5,403.8 $ 5,784.9
$ 3,283.4 $ 3,591.3 $ 3,703.9
2426.60 2606.40 2689.70
856.80 984.90 1014.20
44.10 45.00 58.70
21.50 23.20 34.10
45.10 (2.50) 0.00
746.10 919.20 921.40
294.70 340.10 331.70
451.40 579.10 589.70
1.57 2.07 2.16
287.50 279.80 273.30
-8.1% 2.5% 5.5%
-0.8% 15.0% 3.0%
13.0% 28.3% 1.8%
37.4% 39.9% 39.0%
9.8% 10.9% 10.7%
5.1% 6.4% 6.2%
39.5% 37.0% 36.0%
EXHIBIT 1 OF CASE
Actual Consolidated Income Statements for
1995 1996 1997 1998
Revenues $ 4,760.8 $ 6,470.6 $ 9,186.5 $ 9,553.1
Cost of Goods Sold $ 2,865.3 $ 3,906.7 $ 5,503.0 $ 6,065.5
Gross Profit $ 1,895.5 $ 2,563.9 $ 3,683.5 $ 3,487.6
Selling & administrative 1209.80 1588.60 2303.70 2623.80
Operating Income 685.70 975.30 1379.80 863.80
Interest Expense 24.20 39.50 52.30 60.00
Other Expenses 11.70 36.70 32.30 20.90
Restructuringcharge, net 0.00 0.00 0.00 129.90
Income before taxes 649.80 899.10 1295.20 653.00
Income Taxes 250.20 345.90 499.40 253.40
NET INCOME 399.60 553.20 795.80 399.60
Diluted earnings per common share 1.36 1.88 2.68 1.35
Avg Shares outstanding 294.00 293.60 297.00 296.00
Growth %
Revenue 35.9% 42.0% 4.0%
Operating Income 42.2% 41.5% -37.4%
Net Income 38.4% 43.9% -49.8%
Margins %
Gross Margin 39.6% 40.1% 36.5%
Operating Margin 15.1% 15.0% 9.0%
Net Margin 8.5% 8.7% 4.2%
Effective Tax rate 38.5% 38.6% 38.8%
,millions of dollars except per-share data)
1999 2000 '2001
$ 8,776.9 $ 8,995.1 $ 9,488.8
$ 5,493.5 $ 5,403.8 $ 5,784.9
$ 3,283.4 $ 3,591.3 $ 3,703.9
2426.60 2606.40 2689.70
856.80 984.90 1014.20
44.10 45.00 58.70
21.50 23.20 34.10
45.10 (2.50) 0.00
746.10 919.20 921.40
294.70 340.10 331.70
451.40 579.10 589.70
1.57 2.07 2.16
287.50 279.80 273.30
-8.1% 2.5% 5.5%
-0.8% 15.0% 3.0%
13.0% 28.3% 1.8%
37.4% 39.9% 39.0%
9.8% 10.9% 10.7%
5.1% 6.4% 6.2%
39.5% 37.0% 36.0%
