SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
FOR QUARTERLY REPORTS UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES AND EXCHANGE ACT OF 1934
For the Quarter Ended February 29, 1996 Commission file number - 1-10635
NIKE, Inc.
(Exact name of registrant as specified in its charter)
OREGON 93-0584541
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Bowerman Drive, Beaverton, Oregon 97005-6453
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (503) 671-6453
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days
Yes X No .
___ ___
Common Stock shares outstanding as of February 29, 1996 were:
_________________
Class A 51,230,708
Class B 92,162,231
_________________
143,392,939
==========
PART 1 - FINANCIAL INFORMATION
Item 1. Financial Statements
NIKE, Inc.
CONDENSED CONSOLIDATED BALANCE SHEET
Feb. 29, May 31,
1996 1995
________ _______
(in thousands)
ASSETS
Current assets:
Cash and equivalents $ 259,497 $ 216,071
Accounts receivable 1,169,068 1,053,237
Inventories (Note 3) 880,593 629,742
Deferred income taxes 79,687 72,657
Prepaid expenses 108,826 74,221
__________ _________
Total current assets 2,497,671 2,045,928
__________ _________
Property, plant and equipment 995,509 891,213
Less accumulated depreciation 378,986 336,334
__________ __________
616,523 554,879
Identifiable intangible assets and goodwill 480,765 495,907
Other assets 47,545 46,031
__________ __________
$3,642,504 $3,142,745
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 2,641 $ 31,943
Notes payable 529,823 397,100
Accounts payable 359,253 297,656
Accrued liabilities 377,683 345,224
Income taxes payable 32,113 35,612
__________ __________
Total current liabilities 1,301,513 1,107,535
Long-term debt 13,647 10,565
Non-current deferred income taxes 6,599 17,789
Other long-term liabilities 34,326 41,867
Commitments and contingencies (Note 4) - -
Redeemable Preferred Stock 300 300
Shareholders' equity:
Common Stock at stated value (Note 2):
Class A convertible-51,231 and
52,990 shares outstanding 153 155
Class B-92,162 and 91,402 shares
outstanding 2,701 2,698
Capital in excess of stated value 144,450 122,436
Foreign currency translation
adjustment (16,507) 1,585
Retained earnings 2,155,322 1,837,815
___________ __________
2,286,119 1,964,689
___________ __________
$3,642,504 $3,142,745
========== ==========
The accompanying Notes to Condensed Consolidated Financial Statements are
an integral part of this statement.
NIKE, Inc.
CONDENSED CONSOLIDATED STATEMENT OF INCOME
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
February 29 & 28, February 29 & 28,
__________________ __________________
1996 1995 1996 1995
____ ____ ____ ____
(in thousands, except per share data)
<S> <C> <C> <C> <C>
Revenues $1,491,611 $1,124,697 $4,549,287 $3,348,798
_________ _________ _________ _________
Costs and expenses:
Costs of sales 902,376 678,404 2,745,344 2,018,882
Selling and administrative 382,717 278,311 1,100,825 839,478
Interest expense 11,638 6,257 30,999 14,955
Other (income)/expense, net 9,831 5,376 26,973 6,208
________ ________ _________ _________
1,306,562 968,348 3,904,141 2,879,523
________ ________ _________ _________
Income before income taxes 185,049 156,349 645,146 469,275
Income taxes 71,300 61,000 248,400 183,000
________ ________ _________ _________
Net income $ 113,749 $ 95,349 $ 396,746 $ 286,275
========= ========= ========== ==========
Net income per common share(Note 2) $ 0.78 $ 0.65 $ 2.71 $ 1.94
========= ========= ========== ==========
Dividends declared per common share $ 0.15 $ 0.13 $ 0.43 $ 0.35
========= ========= ========== ==========
Average number of common and
common equivalent shares (Note 2) 147,106 146,964 146,492 147,388
========= ========= ========== ==========
</TABLE>
The accompanying Notes to Condensed Consolidated Financial Statements are
an integral part of this statement.
NIKE, Inc.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
Nine Months Ended
February 29 & 28,
_________________
1996 1995
____ ____
(in thousands)
<S> <C> <C>
Cash provided (used) by operations:
Net income $396,746 $286,275
Income charges (credits) not
affecting cash:
Depreciation 64,374 48,029
Deferred income taxes and
purchased tax benefits (18,231) 4,288
Other non-current liabilities (7,541) (2,316)
Other 23,661 7,760
Changes in other working capital
components (314,218) (205,171)
________ _______
Cash provided by operations 144,791 138,865
________ _______
Cash provided (used) by investing activities:
Acquisition of business:
Net assets acquired -- (83,346)
Goodwill and other intangibles acquired -- (344,474)
Additions to property, plant and
equipment (145,353) (96,008)
Disposals of property, plant and
equipment 5,033 6,671
Increase in other assets (3,858) (4,462)
_______ _______
Cash used by investing activities (144,178) (521,619)
_______ ________
Cash (used) provided by financing activities:
Additions to long-term debt 1,793 1,631
Reductions in long-term debt
including current portion (27,742) (5,247)
Increase in notes payable 132,723 221,614
Proceeds from exercise of options 15,766 3,403
Repurchase of stock (18,756) (71,214)
Dividends paid - common and preferred (57,295) (47,367)
_______ _______
Cash provided by financing
activities 46,489 102,820
_______ _______
Effect of exchange rate changes on cash (3,676) 3,865
_______ _______
Net increase (decrease) in cash and equivalents 43,426 (276,069)
Cash and equivalents, May 31, 1995 and 1994 216,071 518,816
_______ _______
Cash and equivalents,February 29 & 28, 1996
and 1995 $259,497 $242,747
======== ========
</TABLE>
The accompanying Notes to Condensed Consolidated Financial Statements are
an integral part of this statement.
NIKE, Inc.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - Summary of significant accounting policies:
___________________________________________
Basis of Presentation:
The accompanying unaudited condensed consolidated financial statements
reflect all adjustments (consisting of normal recurring accruals) which
are, in the opinion of management, necessary for a fair presentation of
the results of operations for the interim period(s). The interim financial
information and notes thereto should be read in conjunction with the
Company's latest annual report to shareholders. The results of operations
for the three and nine months ended February 29, 1996 are not necessarily
indicative of results to be expected for the entire year.
NOTE 2 - Net income per common share:
___________________________
Net income per common share is computed based on the weighted average
number of common and common equivalent (stock option) shares outstanding
for the period(s).
During the second quarter, the Company effected a two-for-one split of the
outstanding Class A and Class B Common Stock in the form of a 100% stock
dividend. The applicable outstanding shares and net income per common share
figures for previous periods have been restated to reflect this change.
NOTE 3 - Inventories:
___________
Inventories by major classification are as follows:
Feb. 29, May 31,
1996 1995
________ ________
(in thousands)
Finished goods $854,759 $618,521
Work-in-process 21,559 9,064
Raw materials 4,275 2,157
________ ________
$880,593 $629,742
======== ========
NOTE 4 - Commitments and contingencies:
_____________________________
There have been no other significant subsequent developments
relating to the commitments and contingencies reported on the
Company's most recent Form 10-K.
NOTE 5 - Change in year-end of certain subsidiaries:
Currently certain of the Company's international operations report
their results of operations on a one month lag which allows more time to
compile results. The Company has taken steps to improve its internal
reporting procedures that will allow for more timely reporting of these
operations. Beginning in the first quarter of fiscal year 1997, the one
month lag will be eliminated and as a result, the May 1996 results of
operations of these entities will be recorded to retained earnings for
fiscal 1996. The following tables include adjusted quarterly data for
the previous fiscal year as well as the first three quarters of this fiscal
year as if the change were already in effect.
<TABLE>
<CAPTION>
Fiscal Year 1996
____________________________________________________________________________
Three Months Ended
____________________________________________________________________________
8/31/95 11/30/95 2/29/96
______________________ ______________________ ______________________
As Reported Adjusted As Reported Adjusted As Reported Adjusted
<S> <C> <C> <C> <C> <C> <C>
Revenues $1,614,649 $1,700,020 $1,443,027 $1,356,758 $1,491,611 $1,582,039
Costs & expenses:
Costs of sales 967,522 1,013,379 875,446 828,129 902,376 953,316
Selling & administrative 359,525 369,043 358,583 353,715 382,717 387,534
Interest expense 11,377 11,251 7,984 8,527 11,638 12,086
Other (income)/
expense, net 8,344 10,249 8,798 7,375 9,831 11,429
_________ _________ _________ _________ _________ _________
1,346,768 1,403,922 1,250,811 1,197,746 1,306,562 1,364,365
_________ _________ _________ _________ _________ _________
Income before taxes 267,881 296,098 192,216 159,012 185,049 217,674
Income taxes 103,100 114,000 74,000 61,200 71,300 83,800
_________ _________ _________ _________ _________
Net income $164,781 $182,098 $118,216 $97,812 $113,749 $133,874
========== ========== ========= ========= ========= =========
Net income per
common share $1.13 $1.25 $0.80 $0.67 $0.78 $0.91
========== ========== ========= ========= ========= =========
Dividends declared
per common share $0.125 $0.125 $0.15 $0.15 $0.15 $0.15
========== ========== ========= ========= ========= =========
Average number of common
and common equivalent
shares 145,852 145,852 146,994 146,994 147,106 147,106
</TABLE>
<TABLE>
<CAPTION>
Fiscal Year 1995
________________________________________________________________________________________________
Three Months Ended
________________________________________________________________________________________________
8/31/94 11/30/94 2/28/95 5/31/95
_____________________ _____________________ _____________________ _____________________
As Reported Adjusted As Reported Adjusted As Reported Adjusted As Reported Adjusted
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Revenues $1,170,355 $1,253,532 $1,053,746 $ 976,016 $1,124,697 $1,207,934 $1,412,036 $1,351,132
Costs & expenses:
Costs of sales 700,447 746,914 640,031 599,385 678,404 720,548 846,398 816,768
Selling & administrative 292,294 301,383 268,873 255,960 278,311 283,508 370,282 373,482
Interest expense 4,757 5,206 3,941 4,360 6,257 6,006 9,253 9,565
Other (income)/
expense, net (830) 1,162 1,662 2,980 5,376 1,726 5,514 6,133
_________ _________ _________ _________ _________ ________ _______ _______
996,668 1,054,665 914,507 862,685 968,348 1,011,788 1,231,447 1,205,948
_________ _________ _________ _________ _________ _________ _________ _________
Income before taxes 173,687 198,867 139,239 113,331 156,349 196,146 180,589 145,184
Income taxes 67,700 77,500 54,300 44,000 61,000 76,400 67,200 54,000
_________ _________ _________ _________ ________ ________ __________ _________
Net income $105,987 $121,367 $ 84,939 $69,331 $ 95,349 $119,746 $113,389 $91,184
========== ========== ========= ========= ========= ========= ========== =========
Net income per
common share $0.71 $0.82 $0.58 $0.47 $0.65 $0.81 $0.78 $0.63
========== ========== ========= ========= ========= ========= =========== ==========
Dividends declared
per common share 0.100 0.100 0.125 0.125 0.125 0.125 0.125 0.125
========== ========== ========== ========== ========== ========== ============ ==========
Average number of common
and common equivalent
shares 148,444 148,444 146,738 146,738 146,964 146,964 145,878 145,878
</TABLE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
AND FINANCIAL CONDITION
Operating Results
_________________
Net income increased 19.3% for the fiscal third quarter ended
February 29, 1996 over the same period last year. Continued strong
revenue growth was the primary factor in record results for the
quarter, increasing 32.6% over last year. This represents the
Company's sixth straight quarter of double digit increases in total
revenues and net income. For the nine months ended February 29, 1996,
net income increased 38.6%, again on strong revenue growth of 35.8%
and a reduction of selling and administrative costs as percentage of
revenues from 25.1% to 24.2%, which was offset by an increase in
interest and other expenses. The Company believes the continued
strong revenues and earnings growth is a result of the strength of
the NIKE Brand, with a focused effort on new and innovative product
in all areas of the business. In addition, the Company continues
to focus on developing the NIKE Brand outside the U.S., where sales
for the trailing 12 month period surpassed the $2 billion level for
the first time.
The Company experienced double digit revenue growth during the
quarter and nine months ended February 29, 1996 across all the
breakout categories (see chart), with the most significant increase
in U.S. apparel, which grew $100.5 million, or 85.1%, and $286.1
million, or 92.1%, respectively. For the quarter, U.S. apparel
exceeded $200 million for the first time ever. U.S. footwear
increased $65.0 million, or $10.8%, and $284.5 million, or 16.6%,
for the three and nine months ended February 29, 1996, respectively.
For the quarter, the increase in U.S. footwear was a result of a 12%
increase in pairs sold and 1% reduction in average selling prices.
Men's basketball, men's and kids' cross training and women's fitness
dominated the U.S. footwear category. International revenues increased
$153.2 million, or 44.3%, and $417.6 million, or 36.4%, for the three
and nine months ended February 29, 1996, respectively. Excluding the
positive effects of a weaker U.S. dollar, third quarter international
revenues grew 42%. For the quarter on a constant dollar basis, all
regions experienced strong double digit growth, with the most
significant increases in Europe and Asia Pacific regions up 45% and 46%,
respectively. For the nine months ended February 29, 1996, Europe is up
29% and Asia Pacific is up 37% compared to the prior year. Other
Brands, which includes Cole Haan (R), Tetra Plastics, Sports Specialties
and Canstar Sports, increased $48.3 million or 84.1%, and $212.3
million, or 120.1%, for the three and nine months ended February 29,
1996, respectively. $38.7 million and $181.7 million of the increase in
Other Brands for the three and nine months ended February 29, 1996,
respectively, relates to Canstar Sports, which the Company acquired at
the end of the third quarter of the prior year.
The breakdown of revenues follows:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
February 29 & 28, February 29 & 28,
1996 1995 % Change 1996 1995 % Change
____ ____ ___ ____ ____ ___
(in thousands)
<S> <C> <C> <C> <C> <C> <C>
U.S. Footwear $ 668,545 $ 603,529 11% $1,998,610 $1,714,130 17%
U.S. Apparel 218,512 118,049 85 596,790 310,668 92
__________ __________ __________ _________
Total United States 887,057 721,578 23 2,595,400 2,024,798 28
__________ __________ __________ _________
International Footwear 371,047 262,974 41 1,132,437 846,264 34
International Apparel 127,836 82,732 55 432,485 301,050 44
__________ __________ __________ _________
Total International 498,883 345,706 44 1,564,922 1,147,314 36
__________ __________ __________ _________
Other Brands 105,671 57,413 84 388,965 176,686 120
__________ __________ _________ _________
Total Revenues $1,491,611 $1,124,697 33% $4,549,287 $3,348,798 36%
========== ========== === ========= ========= ===
</TABLE>
Consolidated gross margin percentage was 39.5% for the quarter
compared to 39.7% for last year's third quarter. For the nine months
ended February 29,1996, margins remained flat with last year at 39.7%.
Strong demand for NIKE products worldwide and sound inventory
management are holding margins stable on a year-to-date basis. The
Company continues to place strong emphasis on inventory management,
minimizing foreign exchange risk and production sourcing in order to
maximize gross profit. The Company expects gross profit percentages for
the remaining three months of fiscal year 1996 to be affected by strong
demand for NIKE products offset by continued higher levels of air
freight expense to meet the delivery dates on increasing customer
orders.*
Selling and administrative expenses increased $104.4 million in
absolute dollars for the quarter ended February 29, 1996, and as a
percentage of revenues increased one percentage point to 25.7% compared
to the same period last year. On a year to date basis, selling and
administrative expenses have increased $261.4 million, but have
decreased to 24.2% of consolidated revenues compared to 25.1% in the
prior year. For the quarter, U.S. operations expenses increased $38.4
million and international expenses increased $46.6 million, primarily a
result of planned increases in marketing and advertising expenses as
well as infrastructure to support the growth outside the U.S. Canstar
Sports accounted for $11.1 million of the increase. The Company intends
to continue to invest in growth opportunities and to increase marketing
and advertising expenses in order to ensure the successful sell-through
of the high level of orders discussed below.* As a result, the Company
expects selling and administrative expenses as a percentage of revenues
for the current year to approximate that of the prior year.*
Interest expense increased $5.4 million and $16.0 million for the
quarter and nine months ended February 29, 1996, respectively, compared
to the same period last year. The increase is due to the higher levels
of short term borrowings in the U.S. and international needed to fund
current operations. In the prior year, fiscal year to date average cash
and equivalents were higher through February 28, as available cash
was used to fund the acquisition of Canstar Sports, which occurred at
the end of the third quarter of the prior year. Other expense
increased $4.5 million and $20.8 million for the quarter and nine months
ended February 29, 1996, respectively, compared to the same periods last
year. The increase is primarily due to increased goodwill amortization
resulting from the acquisition of Canstar Sports and decreased interest
income from lower available cash.
The Company's effective tax rate for both the quarter and nine
months ended February 29, 1996 was 38.5% compared to 39.0% in both of
the prior year's comparable periods. The Company anticipates the tax
rate will remain at 38.5% for fiscal year 1996.*
Worldwide orders for NIKE Brand athletic footwear and apparel
scheduled for delivery from March 1996 through July 1996 were
approximately $3.4 billion, 38% higher than such orders booked in the
comparable period of the prior year. These orders are not necessarily
indicative of total revenues over that period because the mix of advance
orders and at once shipments may vary significantly from quarter to
quarter and year to year. Additionally, as international operations
continue to account for a greater percentage of total revenues and place
a greater emphasis on futures orders, this mix again may vary. Finally,
exchange rates can cause differences in the comparisons.
Currently certain of the Company's international operations report
their results of operations on a one month lag which allows more time to
compile their results. As further discussed in Note 5 to these
financial statements, the Company will eliminate this one month lag
beginning in the first quarter of fiscal year 1997. The change should
not have a material effect on the annual results of operations, however,
quarterly results will change as certain reporting periods will shift
one month.*
Liquidity and Capital Resources
The Company's financial position remains strong, with working
capital rising $257.8 million since May 31, 1995. The working capital
ratio increased from 1.8:1 at May 31, 1995 to 1.9:1 at February 29, 1996.
Cash and equivalents increased $43.4 million from May 31, 1995.
Cash provided by operations was reduced by changes in other
working capital components discussed below. Other significant uses of
cash included additions to property, plant and equipment, reductions in
long-term debt and the dividends payment. The most significant source of
cash was from an increase in notes payable.
The decrease in other working capital components was due primarily
to increases in accounts receivable and inventories, offset by
increases in accounts payable. The increase in accounts receivable
of $115.8 million was due to sales growth in both January and February
over last fiscal year's final two months. Overall inventories
increased $250.9 million. U.S. footwear, U.S. apparel and international
footwear and apparel inventories have increased $13.2 million, $68.0 million
and $129.0 million, respectively. Increases in accounts payable are a result
of the increased levels of the Company's operations, most significantly,
international operations.
The additions to property, plant and equipment were composed
of normal operational spending, the continued consolidation of European
footwear warehouses, expansion of NIKE Town retail locations and
acquisition of land adjacent to the world headquarters.
The Company also utilized cash to retire long-term debt acquired in
the purchase of Canstar Sports.
Notes payable increased in order to fund the high level of
operations.
For the nine months ended February 29, 1996, the Company has
purchased 200,000 shares of its own stock under the stock repurchase
program announced in July 1993, bringing the total number of shares
purchased in the program to approximately 5,149,000. There were no
purchases during the third quarter.
The debt to equity ratio at February 29, 1996 was .6:1 compared
to .6:1 at May 31, 1995 and .5:1 at February 28, 1995. Management
believes that funds generated by operations, together with
currently available resources, will adequately finance anticipated
fiscal 1996 expenditures.* At February 29, 1996, the Company
had $500 million available in committed unused lines of credit.
*The marked items are forward-looking statements that involve risks and
uncertainties detailed from time to time in reports filed by NIKE with
the S.E.C., including Forms 8-K, 10-Q, and 10-K.
Part II - Other Information
Item 1. Legal Proceedings:
There have been no material changes from the information previously
reported under Item 3 of the Company's Annual Report on Form 10-K for
the fiscal year ended May 31, 1995.
Item 6. Exhibits and Reports on Form 8-K:
(a) EXHIBITS:
3.1 Restated Articles of Incorporation, as amended (incorporated by
reference from Exhibit 3.1 to the Company's Quarterly Report on Form
10-Q for the first quarter ended August 31, 1995).
3.2 Third Restated Bylaws, as amended (incorporated by reference from
Exhibit 3.2 to the Company's Quarterly Report on Form 10-Q for the
first quarter ended August 31, 1995).
4.1 Restated Articles of Incorporation, as amended (see Exhibit 3.1).
4.2 Third Restated Bylaws, as amended (see Exhibit 3.2).
10.1 Credit Agreement dated as of September 15, 1995 among NIKE, Inc.,
Bank of America National Trust & Savings Association,
individually and as Agent, and the other banks party thereto (in-
corporated by reference from Exhibit 10.1 to the Company's Quarterly
Report on Form 10-Q for the quarter ended August 31, 1995).
10.2 Form of non-employee director Stock Option Agreement (incorporated
by reference from Exhibit 10.3 to the Company's Annual Report on
Form 10-K for the fiscal year ended May 31, 1993).*
10.3 Form of Indemnity Agreement entered into between the Company and
each of its officers and directors (incorporated by reference from
the Company's definitive proxy statement filed in connection with
its annual meeting of shareholders held on September 21, 1987).
10.4 NIKE, Inc. Restated Employee Incentive Compensation Plan
(incorporated by reference from Registration Statement No. 33-29262
on Form S-8 filed by the Company on June 16, 1989).*
10.5 NIKE, Inc. 1990 Stock Incentive Plan (incorporated by reference
from the Company's definitive proxy statement filed in connection
with its annual meeting of shareholders held on September 17, 1990).*
10.6 Collateral Assignment Split-Dollar Agreement between NIKE, Inc.
and Philip H. Knight dated March 10, 1994 (incorporated by
reference from Exhibit 10.7 to the Company's Annual Report on
Form 10-K for he fiscal year ended May 31, 1994).*
10.7 NIKE, Inc. Executive performance Sharing Plan (incorporated by
reference from the Company's definitive proxy statement
filed in connection with its annual meeting of shareholders
held on September 18, 1995).*
27 Financial Data Schedule.
* Management contract or compensatory plan or arrangement.
(b) The following reports on Form 8-K were filed by the Company during
the third quarter of fiscal 1996:
December 18, 1995 ITEM 5. OTHER EVENTS Press release announcing
second quarter earnings.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
NIKE, Inc.
An Oregon Corporation
BY: /s/ Robert S. Falcone
Robert S. Falcone
Vice President,
Chief Financial Officer
DATED:________________________, 1996
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
THE FEBRUARY 29, 1996 FORM 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAY-31-1996
<PERIOD-END> FEB-29-1996
<CASH> 259,497
<SECURITIES> 0
<RECEIVABLES> 1,169,068
<ALLOWANCES> 39,323
<INVENTORY> 880,593
<CURRENT-ASSETS> 2,497,671
<PP&E> 995,509
<DEPRECIATION> 378,986
<TOTAL-ASSETS> 3,642,504
<CURRENT-LIABILITIES> 1,301,513
<BONDS> 13,647
<COMMON> 2,854
0
300
<OTHER-SE> 2,283,265
<TOTAL-LIABILITY-AND-EQUITY> 3,642,504
<SALES> 4,549,287
<TOTAL-REVENUES> 4,549,287
<CGS> 2,745,344
<TOTAL-COSTS> 2,745,344
<OTHER-EXPENSES> 1,112,706
<LOSS-PROVISION> 15,092
<INTEREST-EXPENSE> 30,999
<INCOME-PRETAX> 645,146
<INCOME-TAX> 248,400
<INCOME-CONTINUING> 396,746
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 396,746
<EPS-PRIMARY> 2.71
<EPS-DILUTED> 2.71
</TABLE>
