401(k) Savings and Profit Sharing Plan for Employees of NIKE, Inc.
Notes to Financial Statements
May 31, 2020 and 2019
4.
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Party-in-Interest and
Related Party Transactions
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The Plans investments represent funds invested in, or maintained by, Northern Trust
and Fidelity. Northern Trust is the trustee of the Plan assets and Fidelity is the custodian of selected assets and, therefore, these investments represent exempt
party-in-interest transactions. Notes receivable from participants also qualify as
party-in-interest transactions.
Certain Plan investments
are shares of Company common stock. For the years ended May 31, 2020 and 2019, the Plan purchased 600,749 and 564,095 shares of NIKE, Inc. Class B common stock, respectively, at a cost of $15,664,681 and $17,238,298, respectively. For the
same years ended, the Plan sold 1,587,261 and 1,279,421 shares of NIKE, Inc. Class B common stock, respectively, with proceeds of $65,543,492 and $46,615,866, respectively. At May 31, 2020 and 2019, the Plan held $941,746,274 (9,553,117
shares) and $813,026,981 (10,539,629 shares), respectively, of NIKE, Inc. Class B common stock.
For the years ended May 31, 2020
and 2019, the Plan received a service credit of $100,000 allocated based upon assets in the plan, to offset the cost of Recordkeeper-provided services only. The amount is non-transferable and cannot be
allocated to participant accounts.
The United States Internal Revenue Service has determined and informed the Plan by letter dated December 16, 2013 that the Plan is
designed in accordance with applicable sections of the IRC. Although the Plan has been amended since receiving the determination letter, the Plan administrator believes that the Plan is designed and is currently being operated in compliance with the
applicable requirements of the IRC and therefore believe that the Plan is qualified.
U.S. GAAP requires Plan management to evaluate tax
positions taken by the Plan and recognize a tax liability if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the Internal Revenue Service. The Plan is subject to routine audits by taxing
jurisdictions; however, there are currently no audits for any tax periods in progress.
6.
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Nonparticipant-directed Investments
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Information about the net assets at May 31 and the significant components of the changes in net assets for the years ended May 31
relating to the nonparticipant-directed investments is as follows:
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2020
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2019
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Net assets
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Collective trust funds
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$
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747,659,935
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$
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751,233,073
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Employer receivable
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34,179,224
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Registered investment companies
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78,632,544
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84,225,960
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Accrued interest and dividends
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1,237
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8,669
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Common stock
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1,447
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1,201
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Accrued expenses
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(30,691
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)
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(37,919
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)
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Total net assets
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$
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826,264,472
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$
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869,610,208
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10