Quick interest receipts question
Hey guys,
Looking at Nike's Cash Flow Statement (page 43):
http://investors.nikeinc.com/Theme/Nike/files/doc_financials/AnnualRepo…
How would I find out how much CASH (not income) was received from interest payments to the company?
Any help here will be really appreciated.
Thanks.
pg 43 (CF statement). 3rd line from the bottom. Think that's what you're looking for.
No, bud.
That's cash PAID OUT. Look one line above it.
I'm looking for CASH RECEIVED from interest payments. And this isn't net of received, it's net of capitalized. Meaning, whatever interest they borrowed to do construction or whatever was turned into an asset. This is just the pure-play interest they paid out in cash.
I need RECEIPTS.
Stop yelling at us
Dig into the notes. It's there, I just found it but it's best if you find it yourself.
dude, I ctrl+f'd the shit out of "interest." got 117 results. looked through them all. nothing about interest cash receipts.
I did see a note saying they made $30mm in interest income. but that's an accrual. so wtf? share. please.
Also, why is this not in the CF Statement???
It is probably negligible if they didn't break it out.
I know for a fact that the number can be calculated, so I don't care if it's negligible or not. I'd like to know for future reference, for when it might not be as insignificant.
I'm basically going through a text book page by page right now, this is what it reads:
The text uses Nike's 2010 10k, but that doesn't matter, because those financials are missing Interest receipts, too.
Here's the thing: the number is not reported, but the author uses it in a calculation, anyway. Where did he get this number??? It came from somewhere!
I might just ask the author before I go insane...
The only way I can see that you get to 42.1 in exhibit 4 is by subtracting 6.3 (the income statement net interest accrual) from 48.4 (the cash net interest paid). The author got confused - this amount is equal to the amount paid out in 2010 for interest accrued in other periods, plus the amount accrued for interest income. If cash receipts equal receipts accruals, the difference between interest paid in 2010 and interest accrued in other periods is 12.1 (or 48.4-6.3-30), which might be an interesting figure to track. Anyway, these line items are "interest expense, net" which are presented NET of interest income and expense (incl. capitalized interest, which is not material here), so they don't really tell you anything about interest income vs. expense during the period. The correct number to use instead of 42.1 is the 30m accrual for interest income mentioned in Note 6.
You're welcome.
So far so good until the paragraph right before you wrote that. The 48.4m paid in 2010 is for prior accruals and some portion of net expenses in 2010, but not necessarily the full 6.3 expensed during the year, some of which might also be accrued but not yet paid/received.
Accruals are balance sheet items. Interest that has been accrued but not yet paid (e.g. due to discount amortization or simply on a bond with coupon payments different from the balance sheet date) will be recorded in interest expense with a corresponding interest receivable (for unpaid interest income) or interest payable (for unpaid interest expense) created on the balance sheet. (If it already exists from a prior period, then you'd have an opening balance and a closing balance on the accrual). In the case of NKE these line items aren't large enough to be separately identified.
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