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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 2, 1999
NIKE, INC.
(Exact name of registrant as specified in its charter)
Oregon 1-10635 93-0584541
(State of incorporation) (Commission File (IRS Employer
Number) Identification No.)
One Bowerman Drive, Beaverton, Oregon 97005-6453
(Address of principal executive offices) (Zip Code)
(503) 671-6453
(Registrant's telephone number, including area code)
Item 5. OTHER EVENTS
On July 2, 1999 the registrant and certain of its affiliates executed a
series of agreements with Nissho Iwai Corporation ("NIC"), certain NIC
affiliates, and other parties under which (1) NIKE Logistics Y.K., an
indirect, wholly owned subsidiary of the registrant ("NLYK"), agreed to
purchase from NIC a distribution center currently under construction near
Tokyo, Japan; (2) various affiliates of the registrant agreed to continue to
engage NIC and its affiliates, until May 31, 2001, to provide buying agency
and logistics services in connection with the importation of NIKE brand
products into various countries around the world; and (3) the registrant made
certain commitments as to aggregate commissions that are to be payable by the
registrant's affiliates to NIC and its affiliates over the term of the buying
agency and logistics services agreements.
The Japan distribution center purchase, which was completed on July 12,
1999, increased the registrant's consolidated property, plant and equipment by
approximately 24,500,000,000 Japanese Yen (approximately $210,000,000). NLYK
assumed certain long term debt obligations of NIC, increasing the registrant's
consolidated long term debt by 13,000,000,000 Japanese Yen(approximately
$111,000,000). The remainder of the purchase price for the Japan distribution
center was financed by short term borrowings.
The buying agency and logistics services agreements contain terms and
conditions that are substantially different from the agreements in effect
prior to July 2, 1999. Prospectively, the registrant's consolidated balance
sheet will reflect the registrant's affiliates' legal ownership of goods in
transit to the United States from the countries in which the goods were
produced by independent factories. If the registrant had recognized in
transit inventory for the United States as of May 31, 1999, the registrant's
consolidated inventories and current liabilities would have increased by
approximately $164,000,000.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
NIKE, Inc.
(Registrant)
Date: July 27, 1999
By /s/ Robert E. Harold
Chief Financial Officer
