1. According to the Auditor's Opinion Letter, the consolidated financial statements listed in SEC form 10-K present fairly, in all material respects, the financial position of NIKE, Inc. and its subsidiaries at May 31, 2004 and 2003, and the results of their operations and their cash flows for each of the three years in the period ended May 31, 2004 in conformity with accounting principles generally accepted in the United States of America. Therefore, there are no comments of concern to stakeholders. In fact, there has been no change of accountants nor any disagreements with accountants on any matter of accounting principles or practices or financial statement disclosure required to be reported.
2.Pending litigation: According to Nike's form 10-K filed with the U.S. Securities and Exchange Commission for the fiscal year ended May 31, 2004, There are no material pending legal proceedings, other than ordinary routine litigation incidental to our business, to which we are a party or of which any of our property is the subject.
3. Government Issues and Legislation: The Nike 10-K contained a specific reference to government issues and regulation. The 10-K stated, in part, that there were 'general risks' general risks associated with doing business outside the United States, including without limitation, import duties, tariffs, quotas, political and economic instability, and terrorism; changes in government regulations.
4. Concerns of Special Interest Groups: There is some opposition to the idea that Nike has outsourced its production to China where wages are low, and were the rank and file employee are treated with little respect. One of the concerns of special interest groups involves changing Nike's dependency on exploitive foreign labor markets. Currently, Nike has more than 80 people located around the globe focusing exclusively on compliance issues in the supply chain as part of the company's sourcing divis
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