NIKE, Inc.
Q3 2017
Mar 21, 2017
from Andy Campion's closing comments in the conference call:
That said, at our investor day in October FY16, we communicated that we expected FX to be a significant headwind through FY18, as our long-dated hedge portfolio matures and rolls forward. Since that time, the US Dollar has further strengthened against most international currencies. At current rates, we project that we will have absorbed $1.6 to $2.0 billion of cumulative FX downside over FY16, FY17 and FY18, with the most significant annual impact being in FY18. We look forward to putting these extreme FX headwinds behind us as we exit FY18. In the meantime, we will continue to deliver strong Revenue growth and make NIKE a much more efficient and profitable enterprise on a currency-neutral basis.
In closing, we will continue to manage all of the operating levers within our portfolio to deliver strong performance in the short-term. At the same time, we will remain relentlessly on the offense investing, innovating and, in some cases, revolutionizing the industry to exceed consumer expectations, fuel long-term growth and, in turn, create value for shareholders.
Footnote to Balance Sheet:
During the fourth quarter of fiscal 2016, NIKE, Inc. adopted Accounting Standards Update No. 2015-17, which requires all deferred tax assets and deferred tax liabilities to be classified as non-current. All periods presented have been updated to reflect these changes.
Other, re: Balance Sheet
Cash and short-term investments were $6.2 billion, $1.1 billion higher than the prior year as growth in net income and proceeds from the issuance of debt in the second quarter of fiscal 2017 as well as proceeds from employee exercises of stock options more than offset share repurchases, higher dividends and investments in infrastructure.
Share Repurchases
During the third quarter, NIKE, Inc. repurchased a total of 8.9 million shares for approximately $475 million as part of the four-year, $12 billion program approved by the Board of Directors in November 2015. As of February 28, 2017, a total of 64.9 million shares had been repurchased under this program for approximately $3.6 billion. |
