What is the main purpose of this 8-K filing?

The main purpose of this 8-K filing is to update investors on the expected financial impact of adopting new accounting standards (SFAS No. 133 and 138) on NIKE's financial results. Specifically, it revises a prior estimate of earnings impact.

What was the previous estimated impact of FAS 133, and why has it changed?

Previously, NIKE estimated a charge of approximately $0.10 per share to net income in the first quarter of fiscal year 2002 due to the adoption of FAS 133. This estimate has changed because of recent activities and guidance from the Financial Accounting Standard Board's Derivatives Implementation Group, which has reduced the anticipated transition adjustment to an insignificant amount.

Is the change in the FAS 133 impact a positive or negative development for NIKE shareholders?

This is a positive development for NIKE shareholders. The company previously projected a potential earnings dilution of $0.10 per share. The revised outlook, indicating an insignificant impact, means that this anticipated reduction in net income will not materialize, thus avoiding the previously expected negative pressure on earnings.

NKE 8-K SEC Disclosure — Apr 27, 2001

Summary

This 8-K filing from NIKE, Inc. provides an important update regarding the expected impact of adopting Statement of Financial Accounting Standards ("SFAS") No. 133, "Accounting for Derivative Instruments and Hedging Activities," as amended by SFAS No. 138. Previously, in their Form 10-Q filed on April 16, 2001, NKE estimated a charge to net income of approximately $0.10 per share in the first quarter of fiscal year 2002 due to this adoption. However, subsequent developments, particularly recent activities of the Financial Accounting Standard Board's Derivatives Implementation Group, have led NIKE to revise this estimate significantly. The company now anticipates that the transition adjustment related to FAS 133 will result in an insignificant impact on net income. This revised outlook is a positive development for investors, reducing potential earnings dilution that was previously projected.

Key Highlights

1NIKE, Inc. (NKE) filed an 8-K report on April 26, 2001, to provide an update on accounting changes.
2The report addresses the adoption of SFAS No. 133 and SFAS No. 138, effective June 1, 2001.
3Previously, NKE estimated a $0.10 per share charge to net income in Q1 FY2002 due to FAS 133 adoption.
4Recent activities by the Derivatives Implementation Group have led to a revision of this estimate.
5NIKE now expects the transition adjustment for FAS 133 to have an "insignificant amount" of impact.
6This represents a positive revision from the previously disclosed potential earnings dilution.

NIKE, Inc. 8-K Report (Apr 27, 2001)

Summary

Key Highlights

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