NOTE 8 — Long-Term Debt

Long-term debt, net of unamortized premiums, discounts and debt issuance costs, comprises the following:



						Book Value Outstanding as of May 31,
Scheduled Maturity (Dollars and Yen in millions)	Original Principal		Interest Rate		Interest Payments	2017		2016
Corporate Bond Payables:⁽¹⁾⁽²⁾
May 1, 2023	$	500	2.25	%	Semi-Annually	497		497
November 1, 2026	$	1,000	2.38	%	Semi-Annually	993		—
May 1, 2043	$	500	3.63	%	Semi-Annually	495		494
November 1, 2045	$	1,000	3.88	%	Semi-Annually	981		981
November 1, 2046	$	500	3.38	%	Semi-Annually	490		—
Promissory Notes:
April 1, 2017	$	40	6.20	%	Monthly	—		38
Japanese Yen Notes:⁽³⁾
August 20, 2001 through November 20, 2020	¥	9,000	2.60	%	Quarterly	14		18
August 20, 2001 through November 20, 2020	¥	4,000	2.00	%	Quarterly	7		9
Total						3,477		2,037
Less current maturities						6		44
TOTAL LONG-TERM DEBT						$	3,471	$	1,993


(1)	These senior unsecured obligations rank equally with the Company’s other unsecured and unsubordinated indebtedness.

(2)

The bonds are redeemable at the Company’s option up to three months prior to the scheduled maturity date for the bonds maturing in 2023 and 2026, and up to six months prior to the scheduled maturity date for the bonds maturing in 2043, 2045 and 2046, at a price equal to the greater of (i) 100% of the aggregate principal amount of the notes to be redeemed or (ii) the sum of the present values of the remaining scheduled payments, plus in each case, accrued and unpaid interest. Within three and six months to scheduled maturity, respectively, the bonds also feature a par call provision, which allows for the bonds to be redeemed at a price equal to 100% of the aggregate principal amount of the notes being redeemed, plus accrued and unpaid interest.


(3)	NIKE Logistics YK assumed a total of ¥13.0 billion in loans as part of its agreement to purchase a distribution center in Japan, which serves as collateral for the loans. These loans mature in equal quarterly installments during the period August 20, 2001 through November 20, 2020.

The scheduled maturity of Long-term debt in each of the years ending May 31, 2018 through 2022 are $6 million, $6 million, $6 million, $3 million and $0 million, respectively, at face value.

The Company's Long-term debt is recorded at adjusted cost, net of unamortized premiums, discounts and debt issuance costs. The fair value of Long-term debt is estimated based upon quoted prices for similar instruments or quoted prices for identical instruments in inactive markets (Level 2). The fair value of the Company’s Long-term debt, including the current portion, was approximately $3,401 million at May 31, 2017 and $2,125 million at May 31, 2016.