0000320187-19-000071.txt : 20191004 0000320187-19-000071.hdr.sgml : 20191004 20191004160538 ACCESSION NUMBER: 0000320187-19-000071 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 77 CONFORMED PERIOD OF REPORT: 20190831 FILED AS OF DATE: 20191004 DATE AS OF CHANGE: 20191004 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NIKE, Inc. CENTRAL INDEX KEY: 0000320187 STANDARD INDUSTRIAL CLASSIFICATION: RUBBER & PLASTICS FOOTWEAR [3021] IRS NUMBER: 930584541 STATE OF INCORPORATION: OR FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-10635 FILM NUMBER: 191138679 BUSINESS ADDRESS: STREET 1: ONE BOWERMAN DR CITY: BEAVERTON STATE: OR ZIP: 97005-6453 BUSINESS PHONE: 5036713173 MAIL ADDRESS: STREET 1: ONE BOWERMAN DR CITY: BEAVERTON STATE: OR ZIP: 97005-6453 FORMER COMPANY: FORMER CONFORMED NAME: NIKE INC DATE OF NAME CHANGE: 19920703 10-Q 1 nke-831201910q.htm 10-Q Document
false--05-31Q120200000320187YesYes184000000P2Y50000000440000000.200.2231500000012530000003150000001245000000270000000000.100.10 0000320187 2019-06-01 2019-08-31 0000320187 us-gaap:CommonClassAMember 2019-09-30 0000320187 us-gaap:CommonClassBMember 2019-09-30 0000320187 2018-06-01 2018-08-31 0000320187 2019-05-31 0000320187 2019-08-31 0000320187 us-gaap:CommonClassBMember 2019-08-31 0000320187 us-gaap:CommonClassAMember 2019-08-31 0000320187 us-gaap:CommonClassBMember 2019-05-31 0000320187 us-gaap:CommonClassAMember 2019-05-31 0000320187 2018-08-31 0000320187 2018-05-31 0000320187 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2019-06-01 2019-08-31 0000320187 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2019-05-31 0000320187 us-gaap:AdditionalPaidInCapitalMember 2019-06-01 2019-08-31 0000320187 us-gaap:AccountingStandardsUpdate201602Member us-gaap:RetainedEarningsMember 2019-06-01 0000320187 us-gaap:RetainedEarningsMember 2019-06-01 2019-08-31 0000320187 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-05-31 0000320187 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-01 2019-08-31 0000320187 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2019-08-31 0000320187 us-gaap:AccountingStandardsUpdate201602Member 2019-06-01 0000320187 us-gaap:AdditionalPaidInCapitalMember 2019-08-31 0000320187 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2019-08-31 0000320187 us-gaap:RetainedEarningsMember 2019-08-31 0000320187 us-gaap:AdditionalPaidInCapitalMember 2019-05-31 0000320187 us-gaap:RetainedEarningsMember 2019-05-31 0000320187 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-08-31 0000320187 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2019-05-31 0000320187 us-gaap:AdditionalPaidInCapitalMember 2018-06-01 2018-08-31 0000320187 us-gaap:AccountingStandardsUpdate201409Member 2018-06-01 0000320187 us-gaap:RetainedEarningsMember 2018-06-01 2018-08-31 0000320187 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2018-08-31 0000320187 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-01 2018-08-31 0000320187 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2018-05-31 0000320187 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-05-31 0000320187 us-gaap:AccountingStandardsUpdate201409Member us-gaap:RetainedEarningsMember 2018-06-01 0000320187 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-08-31 0000320187 us-gaap:AdditionalPaidInCapitalMember 2018-05-31 0000320187 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-06-01 2018-08-31 0000320187 us-gaap:AccountingStandardsUpdate201616Member us-gaap:RetainedEarningsMember 2018-06-01 0000320187 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-08-31 0000320187 us-gaap:RetainedEarningsMember 2018-08-31 0000320187 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2018-06-01 2018-08-31 0000320187 us-gaap:RetainedEarningsMember 2018-05-31 0000320187 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-05-31 0000320187 us-gaap:AccountingStandardsUpdate201616Member 2018-06-01 0000320187 us-gaap:AdditionalPaidInCapitalMember 2018-08-31 0000320187 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasurySecuritiesMember 2019-05-31 0000320187 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2019-05-31 0000320187 us-gaap:FairValueMeasurementsRecurringMember 2019-05-31 0000320187 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:BankTimeDepositsMember 2019-05-31 0000320187 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember nke:CommercialPaperandBondsMember 2019-05-31 0000320187 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2019-05-31 0000320187 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-05-31 0000320187 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:BankTimeDepositsMember 2019-08-31 0000320187 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember nke:CommercialPaperandBondsMember 2019-08-31 0000320187 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USTreasurySecuritiesMember 2019-08-31 0000320187 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2019-08-31 0000320187 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-08-31 0000320187 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2019-08-31 0000320187 us-gaap:FairValueMeasurementsRecurringMember 2019-08-31 0000320187 us-gaap:CashAndCashEquivalentsMember us-gaap:ForeignExchangeContractMember 2019-08-31 0000320187 us-gaap:AvailableforsaleSecuritiesMember 2019-08-31 0000320187 us-gaap:CashAndCashEquivalentsMember us-gaap:ForeignExchangeContractMember 2019-05-31 0000320187 us-gaap:ForeignExchangeContractMember us-gaap:FairValueMeasurementsRecurringMember 2019-08-31 0000320187 us-gaap:ForeignExchangeContractMember us-gaap:FairValueMeasurementsRecurringMember 2019-05-31 0000320187 nke:InterestIncomeExpenseNetMember 2018-06-01 2018-08-31 0000320187 nke:InterestIncomeExpenseNetMember 2019-06-01 2019-08-31 0000320187 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-05-31 0000320187 us-gaap:ForeignExchangeContractMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-05-31 0000320187 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-08-31 0000320187 us-gaap:ForeignExchangeContractMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-08-31 0000320187 us-gaap:RevolvingCreditFacilityMember 2019-08-16 0000320187 us-gaap:RevolvingCreditFacilityMember 2019-08-16 2019-08-16 0000320187 us-gaap:CommercialPaperMember 2019-08-31 0000320187 us-gaap:RevolvingCreditFacilityMember 2015-08-25 0000320187 us-gaap:RevolvingCreditFacilityMember 2019-08-31 0000320187 us-gaap:CommercialPaperMember 2019-05-31 0000320187 us-gaap:RevolvingCreditFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-08-16 2019-08-16 0000320187 us-gaap:RevolvingCreditFacilityMember 2019-05-31 0000320187 us-gaap:EmployeeStockOptionMember us-gaap:CommonClassBMember 2018-06-01 2018-08-31 0000320187 us-gaap:EmployeeStockMember us-gaap:CommonClassBMember 2018-06-01 2018-08-31 0000320187 us-gaap:RestrictedStockMember us-gaap:CommonClassBMember 2018-06-01 2018-08-31 0000320187 us-gaap:CommonClassBMember 2018-06-01 2018-08-31 0000320187 us-gaap:CommonClassBMember 2019-06-01 2019-08-31 0000320187 us-gaap:EmployeeStockOptionMember us-gaap:CommonClassBMember 2019-06-01 2019-08-31 0000320187 us-gaap:RestrictedStockMember us-gaap:CommonClassBMember 2019-06-01 2019-08-31 0000320187 us-gaap:EmployeeStockMember us-gaap:CommonClassBMember 2019-06-01 2019-08-31 0000320187 us-gaap:EmployeeStockOptionMember nke:StockIncentivePlanMember 2019-06-01 2019-08-31 0000320187 us-gaap:EmployeeStockOptionMember nke:StockIncentivePlanMember 2019-08-31 0000320187 nke:StockIncentivePlanMember us-gaap:CommonClassBMember 2019-06-01 2019-08-31 0000320187 us-gaap:EmployeeStockOptionMember 2019-06-01 2019-08-31 0000320187 nke:RestrictedStockAndRestrictedStockUnitsMember 2019-06-01 2019-08-31 0000320187 nke:StockIncentivePlanMember us-gaap:CommonClassBMember 2019-08-31 0000320187 nke:RestrictedStockAndRestrictedStockUnitsMember 2018-06-01 2018-08-31 0000320187 nke:RestrictedStockAndRestrictedStockUnitsMember 2019-08-31 0000320187 us-gaap:EmployeeStockOptionMember 2018-06-01 2018-08-31 0000320187 us-gaap:EmployeeStockOptionMember 2018-06-01 2018-08-31 0000320187 us-gaap:EmployeeStockOptionMember 2019-06-01 2019-08-31 0000320187 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember nke:InterestIncomeExpenseNetMember 2019-06-01 2019-08-31 0000320187 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember nke:OtherIncomeAndExpenseMember 2018-06-01 2018-08-31 0000320187 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember nke:InterestIncomeExpenseNetMember 2018-06-01 2018-08-31 0000320187 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:CostOfGoodsTotalMember 2019-06-01 2019-08-31 0000320187 us-gaap:CashFlowHedgingMember 2018-06-01 2018-08-31 0000320187 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:SalesMember 2019-06-01 2019-08-31 0000320187 us-gaap:CashFlowHedgingMember 2019-06-01 2019-08-31 0000320187 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember nke:OtherIncomeAndExpenseMember 2019-06-01 2019-08-31 0000320187 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:SalesMember 2018-06-01 2018-08-31 0000320187 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:CostOfGoodsTotalMember 2018-06-01 2018-08-31 0000320187 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:NondesignatedMember nke:OtherIncomeAndExpenseMember 2018-06-01 2018-08-31 0000320187 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:NondesignatedMember nke:OtherIncomeAndExpenseMember 2019-06-01 2019-08-31 0000320187 us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember nke:OtherIncomeAndExpenseMember 2018-06-01 2018-08-31 0000320187 us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember nke:OtherIncomeAndExpenseMember 2019-06-01 2019-08-31 0000320187 us-gaap:CashAndCashEquivalentsMember 2019-08-31 0000320187 us-gaap:CashFlowHedgingMember 2019-08-31 0000320187 nke:NotDesignatedasDerivativeInstrumentMember 2019-08-31 0000320187 us-gaap:EmbeddedDerivativeFinancialInstrumentsMember 2019-08-31 0000320187 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-05-31 0000320187 nke:DeferredIncomeTaxesAndOtherLongTermLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-08-31 0000320187 us-gaap:DesignatedAsHedgingInstrumentMember 2019-08-31 0000320187 us-gaap:AccruedLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2019-08-31 0000320187 us-gaap:NondesignatedMember 2019-08-31 0000320187 us-gaap:DesignatedAsHedgingInstrumentMember 2019-05-31 0000320187 nke:DeferredIncomeTaxesAndOtherLongTermAssetsMember us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:NondesignatedMember 2019-05-31 0000320187 nke:DeferredIncomeTaxesAndOtherLongTermLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-05-31 0000320187 us-gaap:AccruedLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-05-31 0000320187 us-gaap:AccruedLiabilitiesMember us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:NondesignatedMember 2019-08-31 0000320187 us-gaap:NondesignatedMember 2019-05-31 0000320187 us-gaap:AccruedLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2019-05-31 0000320187 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:NondesignatedMember 2019-08-31 0000320187 nke:DeferredIncomeTaxesAndOtherLongTermAssetsMember us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:NondesignatedMember 2019-08-31 0000320187 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-08-31 0000320187 us-gaap:AccruedLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-08-31 0000320187 nke:DeferredIncomeTaxesAndOtherLongTermLiabilitiesMember us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:NondesignatedMember 2019-08-31 0000320187 nke:DeferredIncomeTaxesAndOtherLongTermAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-05-31 0000320187 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:NondesignatedMember 2019-05-31 0000320187 nke:DeferredIncomeTaxesAndOtherLongTermLiabilitiesMember us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:NondesignatedMember 2019-05-31 0000320187 us-gaap:AccruedLiabilitiesMember us-gaap:EmbeddedDerivativeFinancialInstrumentsMember us-gaap:NondesignatedMember 2019-05-31 0000320187 nke:DeferredIncomeTaxesAndOtherLongTermAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-08-31 0000320187 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2019-05-31 0000320187 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2019-08-31 0000320187 nke:AccumulatedOtherAdjustmentsMember 2018-06-01 2018-08-31 0000320187 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-06-01 2018-08-31 0000320187 us-gaap:AccumulatedTranslationAdjustmentMember 2019-06-01 2019-08-31 0000320187 nke:AccumulatedOtherAdjustmentsMember 2019-06-01 2019-08-31 0000320187 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-06-01 2019-08-31 0000320187 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-06-01 2018-08-31 0000320187 us-gaap:AccumulatedTranslationAdjustmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2019-06-01 2019-08-31 0000320187 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember nke:AccumulatedOtherAdjustmentsMember 2018-06-01 2018-08-31 0000320187 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-06-01 2018-08-31 0000320187 nke:ForeignExchangeForwardandOptionMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2019-06-01 2019-08-31 0000320187 us-gaap:InterestRateSwapMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-06-01 2018-08-31 0000320187 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2019-06-01 2019-08-31 0000320187 nke:ForeignExchangeForwardandOptionMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-06-01 2018-08-31 0000320187 us-gaap:InterestRateSwapMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2019-06-01 2019-08-31 0000320187 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2019-06-01 2019-08-31 0000320187 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember nke:AccumulatedOtherAdjustmentsMember 2019-06-01 2019-08-31 0000320187 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2018-06-01 2018-08-31 0000320187 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-05-31 0000320187 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-05-31 0000320187 us-gaap:AccumulatedTranslationAdjustmentMember 2018-05-31 0000320187 us-gaap:ParentMember 2018-08-31 0000320187 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-08-31 0000320187 us-gaap:AccumulatedTranslationAdjustmentMember 2018-08-31 0000320187 nke:AccumulatedOtherAdjustmentsMember 2018-08-31 0000320187 nke:AccumulatedOtherAdjustmentsMember 2018-05-31 0000320187 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-08-31 0000320187 us-gaap:ParentMember 2018-05-31 0000320187 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-05-31 0000320187 nke:AccumulatedOtherAdjustmentsMember 2019-08-31 0000320187 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2019-05-31 0000320187 nke:AccumulatedOtherAdjustmentsMember 2019-05-31 0000320187 us-gaap:AccumulatedTranslationAdjustmentMember 2019-08-31 0000320187 us-gaap:ParentMember 2019-08-31 0000320187 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2019-08-31 0000320187 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-08-31 0000320187 us-gaap:AccumulatedTranslationAdjustmentMember 2019-05-31 0000320187 us-gaap:ParentMember 2019-05-31 0000320187 us-gaap:OperatingSegmentsMember nke:OtherProductLinesMember nke:NIKEBrandMember 2019-06-01 2019-08-31 0000320187 nke:SportingEquipmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:ApparelMember nke:NIKEBrandMember nke:EuropeMiddleEastAndAfricaSegmentMember 2019-06-01 2019-08-31 0000320187 nke:SalesChannelOtherMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SalesChannelWholesaleMember nke:NIKEBrandMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SalesChannelOtherMember nke:NIKEBrandMember nke:AsiaPacificAndLatinAmericaSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SalesChannelWholesaleMember nke:NIKEBrandMember nke:AsiaPacificAndLatinAmericaSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:CorporateNonSegmentMember nke:SalesChannelWholesaleMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:FootwearMember nke:NIKEBrandMember nke:NorthAmericaSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:MaterialReconcilingItemsMember nke:SalesChannelWholesaleMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SalesChannelOtherMember nke:ConverseSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SalesChannelOtherMember nke:NIKEBrandMember nke:EuropeMiddleEastAndAfricaSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:NIKEBrandMember nke:NorthAmericaSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:OtherProductLinesMember nke:NIKEBrandMember nke:EuropeMiddleEastAndAfricaSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:MaterialReconcilingItemsMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SalesChannelWholesaleMember nke:ConverseSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:ApparelMember nke:NIKEBrandMember nke:NorthAmericaSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:NIKEBrandMember nke:AsiaPacificAndLatinAmericaSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SalesChannelWholesaleMember nke:NIKEBrandMember nke:EuropeMiddleEastAndAfricaSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SportingEquipmentMember nke:ConverseSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:CorporateNonSegmentMember nke:SportingEquipmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:MaterialReconcilingItemsMember nke:FootwearMember 2019-06-01 2019-08-31 0000320187 us-gaap:CorporateNonSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SportingEquipmentMember nke:NIKEBrandMember nke:GreaterChinaSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:OtherProductLinesMember nke:NIKEBrandMember nke:AsiaPacificAndLatinAmericaSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:MaterialReconcilingItemsMember us-gaap:SalesChannelDirectlyToConsumerMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember nke:ConverseSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:CorporateNonSegmentMember nke:ApparelMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:OtherProductLinesMember nke:NIKEBrandMember nke:GreaterChinaSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:FootwearMember nke:ConverseSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:CorporateNonSegmentMember nke:OtherProductLinesMember 2019-06-01 2019-08-31 0000320187 us-gaap:CorporateNonSegmentMember nke:SalesChannelOtherMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SportingEquipmentMember nke:NIKEBrandMember nke:NorthAmericaSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:FootwearMember nke:NIKEBrandMember nke:GreaterChinaSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:ApparelMember nke:NIKEBrandMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:NIKEBrandMember nke:EuropeMiddleEastAndAfricaSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:ConverseSegmentMember 2019-06-01 2019-08-31 0000320187 nke:FootwearMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:NIKEBrandMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:ApparelMember nke:NIKEBrandMember nke:AsiaPacificAndLatinAmericaSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember nke:NIKEBrandMember nke:NorthAmericaSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:FootwearMember nke:NIKEBrandMember 2019-06-01 2019-08-31 0000320187 us-gaap:CorporateNonSegmentMember us-gaap:SalesChannelDirectlyToConsumerMember 2019-06-01 2019-08-31 0000320187 us-gaap:MaterialReconcilingItemsMember nke:OtherProductLinesMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:FootwearMember nke:NIKEBrandMember nke:AsiaPacificAndLatinAmericaSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember nke:NIKEBrandMember nke:AsiaPacificAndLatinAmericaSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:NIKEBrandMember nke:GreaterChinaSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:ApparelMember nke:ConverseSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SportingEquipmentMember nke:NIKEBrandMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember nke:NIKEBrandMember 2019-06-01 2019-08-31 0000320187 us-gaap:CorporateNonSegmentMember nke:FootwearMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SalesChannelWholesaleMember nke:NIKEBrandMember nke:NorthAmericaSegmentMember 2019-06-01 2019-08-31 0000320187 nke:OtherProductLinesMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:OtherProductLinesMember nke:NIKEBrandMember nke:NorthAmericaSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:SalesChannelDirectlyToConsumerMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SportingEquipmentMember nke:NIKEBrandMember nke:EuropeMiddleEastAndAfricaSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember nke:NIKEBrandMember nke:EuropeMiddleEastAndAfricaSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SalesChannelOtherMember nke:NIKEBrandMember nke:GreaterChinaSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:OtherProductLinesMember nke:ConverseSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SalesChannelOtherMember nke:NIKEBrandMember 2019-06-01 2019-08-31 0000320187 us-gaap:MaterialReconcilingItemsMember nke:SportingEquipmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:MaterialReconcilingItemsMember nke:ApparelMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember nke:NIKEBrandMember nke:GreaterChinaSegmentMember 2019-06-01 2019-08-31 0000320187 nke:SalesChannelWholesaleMember 2019-06-01 2019-08-31 0000320187 us-gaap:MaterialReconcilingItemsMember nke:SalesChannelOtherMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SalesChannelWholesaleMember nke:NIKEBrandMember nke:GreaterChinaSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SportingEquipmentMember nke:NIKEBrandMember nke:AsiaPacificAndLatinAmericaSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:ApparelMember nke:NIKEBrandMember nke:GreaterChinaSegmentMember 2019-06-01 2019-08-31 0000320187 nke:ApparelMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SalesChannelOtherMember nke:NIKEBrandMember nke:NorthAmericaSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:FootwearMember nke:NIKEBrandMember nke:EuropeMiddleEastAndAfricaSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SalesChannelOtherMember nke:NIKEBrandMember 2018-06-01 2018-08-31 0000320187 us-gaap:MaterialReconcilingItemsMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember nke:NIKEBrandMember nke:EuropeMiddleEastAndAfricaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember nke:NIKEBrandMember nke:GreaterChinaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:SalesChannelDirectlyToConsumerMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:NIKEBrandMember nke:GreaterChinaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember nke:NIKEBrandMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:ApparelMember nke:NIKEBrandMember nke:AsiaPacificAndLatinAmericaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:NIKEBrandMember nke:EuropeMiddleEastAndAfricaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:FootwearMember nke:ConverseSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SportingEquipmentMember nke:NIKEBrandMember nke:AsiaPacificAndLatinAmericaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:FootwearMember nke:NIKEBrandMember nke:AsiaPacificAndLatinAmericaSegmentMember 2018-06-01 2018-08-31 0000320187 nke:OtherProductLinesMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SportingEquipmentMember nke:NIKEBrandMember nke:GreaterChinaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember nke:NIKEBrandMember nke:NorthAmericaSegmentMember 2018-06-01 2018-08-31 0000320187 nke:SalesChannelWholesaleMember 2018-06-01 2018-08-31 0000320187 nke:SalesChannelOtherMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SalesChannelWholesaleMember nke:NIKEBrandMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SalesChannelWholesaleMember nke:NIKEBrandMember nke:NorthAmericaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:ConverseSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:ApparelMember nke:NIKEBrandMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:OtherProductLinesMember nke:NIKEBrandMember nke:EuropeMiddleEastAndAfricaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:FootwearMember nke:NIKEBrandMember nke:GreaterChinaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SalesChannelOtherMember nke:ConverseSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:OtherProductLinesMember nke:NIKEBrandMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember nke:ConverseSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:ApparelMember nke:ConverseSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SalesChannelWholesaleMember nke:ConverseSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:OtherProductLinesMember nke:NIKEBrandMember nke:NorthAmericaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SalesChannelOtherMember nke:NIKEBrandMember nke:NorthAmericaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:MaterialReconcilingItemsMember nke:ApparelMember 2018-06-01 2018-08-31 0000320187 us-gaap:CorporateNonSegmentMember nke:SportingEquipmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:ApparelMember nke:NIKEBrandMember nke:GreaterChinaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SalesChannelWholesaleMember nke:NIKEBrandMember nke:EuropeMiddleEastAndAfricaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SportingEquipmentMember nke:NIKEBrandMember 2018-06-01 2018-08-31 0000320187 us-gaap:CorporateNonSegmentMember nke:FootwearMember 2018-06-01 2018-08-31 0000320187 nke:ApparelMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:NIKEBrandMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:ApparelMember nke:NIKEBrandMember nke:NorthAmericaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:FootwearMember nke:NIKEBrandMember nke:EuropeMiddleEastAndAfricaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:OtherProductLinesMember nke:NIKEBrandMember nke:AsiaPacificAndLatinAmericaSegmentMember 2018-06-01 2018-08-31 0000320187 nke:SportingEquipmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:NIKEBrandMember nke:NorthAmericaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:MaterialReconcilingItemsMember nke:OtherProductLinesMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:ApparelMember nke:NIKEBrandMember nke:EuropeMiddleEastAndAfricaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:CorporateNonSegmentMember nke:SalesChannelOtherMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SalesChannelOtherMember nke:NIKEBrandMember nke:EuropeMiddleEastAndAfricaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:OtherProductLinesMember nke:NIKEBrandMember nke:GreaterChinaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:CorporateNonSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:FootwearMember nke:NIKEBrandMember nke:NorthAmericaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:NIKEBrandMember nke:AsiaPacificAndLatinAmericaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SalesChannelWholesaleMember nke:NIKEBrandMember nke:AsiaPacificAndLatinAmericaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SalesChannelWholesaleMember nke:NIKEBrandMember nke:GreaterChinaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember us-gaap:SalesChannelDirectlyToConsumerMember nke:NIKEBrandMember nke:AsiaPacificAndLatinAmericaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:CorporateNonSegmentMember nke:SalesChannelWholesaleMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SportingEquipmentMember nke:ConverseSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:MaterialReconcilingItemsMember us-gaap:SalesChannelDirectlyToConsumerMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SalesChannelOtherMember nke:NIKEBrandMember nke:AsiaPacificAndLatinAmericaSegmentMember 2018-06-01 2018-08-31 0000320187 nke:FootwearMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:OtherProductLinesMember nke:ConverseSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:CorporateNonSegmentMember nke:OtherProductLinesMember 2018-06-01 2018-08-31 0000320187 us-gaap:CorporateNonSegmentMember nke:ApparelMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SalesChannelOtherMember nke:NIKEBrandMember nke:GreaterChinaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:FootwearMember nke:NIKEBrandMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SportingEquipmentMember nke:NIKEBrandMember nke:NorthAmericaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:MaterialReconcilingItemsMember nke:SportingEquipmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:MaterialReconcilingItemsMember nke:SalesChannelWholesaleMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:SportingEquipmentMember nke:NIKEBrandMember nke:EuropeMiddleEastAndAfricaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:MaterialReconcilingItemsMember nke:SalesChannelOtherMember 2018-06-01 2018-08-31 0000320187 us-gaap:CorporateNonSegmentMember us-gaap:SalesChannelDirectlyToConsumerMember 2018-06-01 2018-08-31 0000320187 us-gaap:MaterialReconcilingItemsMember nke:FootwearMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:NIKEBrandMember nke:NIKEBrandMember nke:EuropeMiddleEastAndAfricaSegmentMember 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:ConverseSegmentMember nke:ConverseSegmentMember 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:NIKEBrandMember nke:NIKEBrandMember nke:AsiaPacificAndLatinAmericaSegmentMember 2019-05-31 0000320187 us-gaap:OperatingSegmentsMember nke:NIKEBrandMember nke:NIKEBrandMember nke:NorthAmericaSegmentMember 2019-08-31 0000320187 us-gaap:MaterialReconcilingItemsMember nke:NIKEBrandMember 2019-05-31 0000320187 us-gaap:CorporateNonSegmentMember 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:NIKEBrandMember nke:NIKEBrandMember nke:NorthAmericaSegmentMember 2019-05-31 0000320187 us-gaap:CorporateNonSegmentMember 2019-05-31 0000320187 us-gaap:MaterialReconcilingItemsMember nke:NIKEBrandMember 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:NIKEBrandMember nke:NIKEBrandMember nke:EuropeMiddleEastAndAfricaSegmentMember 2019-05-31 0000320187 us-gaap:OperatingSegmentsMember nke:NIKEBrandMember nke:NIKEBrandMember nke:AsiaPacificAndLatinAmericaSegmentMember 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:NIKEBrandMember nke:NIKEBrandMember nke:GreaterChinaSegmentMember 2019-05-31 0000320187 us-gaap:OperatingSegmentsMember nke:NIKEBrandMember nke:NIKEBrandMember 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:NIKEBrandMember nke:NIKEBrandMember 2019-05-31 0000320187 us-gaap:OperatingSegmentsMember nke:ConverseSegmentMember nke:ConverseSegmentMember 2019-05-31 0000320187 us-gaap:OperatingSegmentsMember nke:NIKEBrandMember nke:NIKEBrandMember nke:GreaterChinaSegmentMember 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:NIKEBrandMember nke:NIKEBrandMember nke:NorthAmericaSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:NIKEBrandMember nke:NIKEBrandMember nke:GreaterChinaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:MaterialReconcilingItemsMember nke:NIKEBrandMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:NIKEBrandMember nke:NIKEBrandMember nke:EuropeMiddleEastAndAfricaSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:NIKEBrandMember nke:NIKEBrandMember nke:GreaterChinaSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:MaterialReconcilingItemsMember nke:NIKEBrandMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:ConverseSegmentMember nke:ConverseSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:NIKEBrandMember nke:NIKEBrandMember nke:NorthAmericaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:NIKEBrandMember nke:NIKEBrandMember nke:EuropeMiddleEastAndAfricaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:NIKEBrandMember nke:NIKEBrandMember nke:AsiaPacificAndLatinAmericaSegmentMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:ConverseSegmentMember nke:ConverseSegmentMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:NIKEBrandMember nke:NIKEBrandMember 2019-06-01 2019-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:NIKEBrandMember nke:NIKEBrandMember 2018-06-01 2018-08-31 0000320187 us-gaap:OperatingSegmentsMember nke:NIKEBrandMember nke:NIKEBrandMember nke:AsiaPacificAndLatinAmericaSegmentMember 2019-06-01 2019-08-31 iso4217:USD xbrli:pure iso4217:USD xbrli:shares xbrli:shares

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED AUGUST 31, 2019

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM                         TO                         .

Commission File No. 1-10635
nikelogoorange.jpg
NIKE, Inc.
(Exact name of Registrant as specified in its charter)
Oregon
93-0584541
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)

One Bowerman Drive, Beaverton, Oregon 97005-6453
(Address of principal executive offices and zip code)

(503) 671-6453
(Registrant's telephone number, including area code)
SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT:
Class B Common Stock
NKE
New York Stock Exchange
(Title of each class)
(Trading symbol)
(Name of each exchange on which registered)
Indicate by check mark:
 
YES
NO
whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
 
þ
whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
 
þ
whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer
þ
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
if an emerging growth company, if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
 
whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).
 
þ
As of September 30, 2019, the number of shares of the Registrant's Common Stock outstanding were:
Class A
315,024,752

Class B
1,246,027,581

 
1,561,052,333




NIKE, INC.
FORM 10-Q
TABLE OF CONTENTS
 
 
PAGE
PART I - FINANCIAL INFORMATION
 
 
 
 
 
 
ITEM 3.
ITEM 4.
PART II - OTHER INFORMATION
ITEM 1.
ITEM 1A.
ITEM 2.
ITEM 6.
 



PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
NIKE, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 
THREE MONTHS ENDED AUGUST 31,
(In millions, except per share data)
2019
2018
Revenues
$
10,660

$
9,948

Cost of sales
5,789

5,551

Gross profit
4,871

4,397

Demand creation expense
1,018

964

Operating overhead expense
2,310

2,099

Total selling and administrative expense
3,328

3,063

Interest expense (income), net
15

11

Other (income) expense, net
(33
)
53

Income before income taxes
1,561

1,270

Income tax expense
194

178

NET INCOME
$
1,367

$
1,092

Earnings per common share:
 
 
Basic
$
0.87

$
0.69

Diluted
$
0.86

$
0.67

Weighted average common shares outstanding:
 
 
Basic
1,562.4

1,594.0

Diluted
1,597.5

1,634.4

The accompanying Notes to the Unaudited Condensed Consolidated Financial Statements are an integral part of this statement.

1



NIKE, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
 
THREE MONTHS ENDED AUGUST 31,
(Dollars in millions)
2019
2018
Net income
$
1,367

$
1,092

Other comprehensive income (loss), net of tax:
 
 
Change in net foreign currency translation adjustment
(89
)
(128
)
Change in net gains (losses) on cash flow hedges
36

193

Change in net gains (losses) on other
2

(3
)
Total other comprehensive income (loss), net of tax
(51
)
62

TOTAL COMPREHENSIVE INCOME
$
1,316

$
1,154


The accompanying Notes to the Unaudited Condensed Consolidated Financial Statements are an integral part of this statement.


2




NIKE, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
 
AUGUST 31,
 
MAY 31,
(Dollars in millions)
2019
 
2019
ASSETS
 
 
 
Current assets:
 
 
 
Cash and equivalents
$
3,446

 
$
4,466

Short-term investments
198

 
197

Accounts receivable, net
4,656

 
4,272

Inventories
5,835

 
5,622

Prepaid expenses and other current assets
2,093

 
1,968

Total current assets
16,228

 
16,525

Property, plant and equipment, net
4,615

 
4,744

Operating lease right-of-use assets, net
2,832

 

Identifiable intangible assets, net
279

 
283

Goodwill
224

 
154

Deferred income taxes and other assets
2,071

 
2,011

TOTAL ASSETS
$
26,249

 
$
23,717

LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
Current liabilities:
 
 
 
Current portion of long-term debt
$
6

 
$
6

Notes payable
250

 
9

Accounts payable
2,716

 
2,612

Current portion of operating lease liabilities
427

 

Accrued liabilities
4,455

 
5,010

Income taxes payable
216

 
229

Total current liabilities
8,070

 
7,866

Long-term debt
3,463

 
3,464

Operating lease liabilities
2,675

 

Deferred income taxes and other liabilities
2,841

 
3,347

Redeemable preferred stock

 

Shareholders' equity:
 
 
 
Common stock at stated value:
 
 
 
Class A convertible — 315 and 315 shares outstanding

 

Class B — 1,245 and 1,253 shares outstanding
3

 
3

Capital in excess of stated value
7,296

 
7,163

Accumulated other comprehensive income (loss)
180

 
231

Retained earnings
1,721

 
1,643

Total shareholders' equity
9,200

 
9,040

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$
26,249

 
$
23,717

The accompanying Notes to the Unaudited Condensed Consolidated Financial Statements are an integral part of this statement.

3



NIKE, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
THREE MONTHS ENDED AUGUST 31,
(Dollars in millions)
2019
2018
Cash provided by operations:
 
 
Net income
$
1,367

$
1,092

Adjustments to reconcile net income to net cash provided by operations:
 
 
Depreciation
169

178

Deferred income taxes
(42
)
18

Stock-based compensation
80

41

Amortization and other
6

3

Net foreign currency adjustments
49

166

Changes in certain working capital components and other assets and liabilities:
 

(Increase) decrease in accounts receivable
(456
)
(294
)
(Increase) decrease in inventories
(270
)
(25
)
(Increase) decrease in prepaid expenses, operating lease right-of-use assets and other current and non-current assets
38

(83
)
Increase (decrease) in accounts payable, accrued liabilities, operating lease liabilities and other current and non-current liabilities
(547
)
205

Cash provided by operations
394

1,301

Cash provided (used) by investing activities:
 
 
Purchases of short-term investments
(504
)
(980
)
Maturities of short-term investments
16

400

Sales of short-term investments
533

586

Additions to property, plant and equipment
(284
)
(343
)
Other investing activities
(109
)
4

Cash provided (used) by investing activities
(348
)
(333
)
Cash used by financing activities:
 
 
Increase (decrease) in notes payable
241

(321
)
Proceeds from exercise of stock options and other stock issuances
111

187

Repurchase of common stock
(999
)
(1,360
)
Dividends — common and preferred
(345
)
(320
)
Other financing activities
(18
)
(18
)
Cash used by financing activities
(1,010
)
(1,832
)
Effect of exchange rate changes on cash and equivalents
(56
)
(103
)
Net increase (decrease) in cash and equivalents
(1,020
)
(967
)
Cash and equivalents, beginning of period
4,466

4,249

CASH AND EQUIVALENTS, END OF PERIOD
$
3,446

$
3,282

Supplemental disclosure of cash flow information:
 
 
Non-cash additions to property, plant and equipment
$
90

$
110

Dividends declared and not paid
344

318

The accompanying Notes to the Unaudited Condensed Consolidated Financial Statements are an integral part of this statement.


4




NIKE, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
 
COMMON STOCK
CAPITAL IN EXCESS OF STATED VALUE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

RETAINED EARNINGS

TOTAL

 
CLASS A
 
CLASS B
(In millions, except per share data)
SHARES

AMOUNT

 
SHARES

AMOUNT

Balance at May 31, 2019
315

$

 
1,253

$
3

$
7,163

$
231

$
1,643

$
9,040

Stock options exercised


 
4


116



116

Conversion to Class B Common Stock


 









Repurchase of Class B Common Stock


 
(12
)

(55
)

(940
)
(995
)
Dividends on common stock ($0.22 per share) and preferred stock ($0.10 per share)


 






(344
)
(344
)
Issuance of shares to employees, net of shares withheld for employee taxes


 



(8
)

(4
)
(12
)
Stock-based compensation


 



80




80

Net income


 






1,367

1,367

Other comprehensive income (loss)


 





(51
)


(51
)
Adoption of ASC Topic 842 (Note 1)


 






(1
)
(1
)
Balance at August 31, 2019
315

$

 
1,245

$
3

$
7,296

$
180

$
1,721

$
9,200

 
COMMON STOCK
CAPITAL IN EXCESS OF STATED VALUE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

RETAINED EARNINGS

TOTAL

 
CLASS A
 
CLASS B
(In millions, except per share data)
SHARES

AMOUNT

 
SHARES

AMOUNT

Balance at May 31, 2018
329

$

 
1,272

$
3

$
6,384

$
(92
)
$
3,517

$
9,812

Stock options exercised


 
6


182



182

Conversion to Class B Common Stock
(9
)

 
9








Repurchase of Class B Common Stock


 
(18
)

(69
)

(1,312
)
(1,381
)
Dividends on common stock ($0.20 per share) and preferred stock ($0.10 per share)


 




(318
)
(318
)
Issuance of shares to employees, net of shares withheld for employee taxes


 



(13
)

(1
)
(14
)
Stock-based compensation


 


41



41

Net income


 




1,092

1,092

Other comprehensive income (loss)


 




62


62

Adoption of ASU 2016-16


 





(507
)
(507
)
Adoption of ASC Topic 606


 




23

23

Balance at August 31, 2018
320

$

 
1,269

$
3

$
6,525

$
(30
)
$
2,494

$
8,992


The accompanying Notes to the Unaudited Condensed Consolidated Financial Statements are an integral part of this statement.

5



NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


6




NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The Unaudited Condensed Consolidated Financial Statements include the accounts of NIKE, Inc. and its subsidiaries (the “Company” or “NIKE”) and reflect all normal recurring adjustments which are, in the opinion of management, necessary for a fair statement of the results of operations for the interim period. The year-end Condensed Consolidated Balance Sheet data as of May 31, 2019 was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). The interim financial information and notes thereto should be read in conjunction with the Company's latest Annual Report on Form 10-K. The results of operations for the three months ended August 31, 2019 are not necessarily indicative of results to be expected for the entire year.
RECENTLY ADOPTED ACCOUNTING STANDARDS
In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842), which replaces existing lease accounting guidance. The new standard is intended to provide enhanced transparency and comparability by requiring lessees to record right-of-use (ROU) assets and corresponding lease liabilities on the balance sheet. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. The new guidance requires the Company to continue to classify leases as either an operating or finance lease, with classification affecting the pattern of expense recognition in the income statement. In addition, the new standard requires enhanced disclosure surrounding the amount, timing and uncertainty of cash flows arising from leasing agreements.
In July 2018, the FASB issued ASU No. 2018-11, which provides entities with an additional transition method. Under the new transition method, an entity initially applies the new standard at the adoption date, versus at the beginning of the earliest period presented, and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company elected this transition method and adopted Topic 842 using a modified retrospective approach in the first quarter of fiscal 2020 with the cumulative effect of initially applying the new standard recognized in Retained earnings at June 1, 2019. Comparative prior period information has not been adjusted and continues to be reported in accordance with previous lease accounting guidance in Accounting Standards Codification (ASC) Topic 840 — Leases.
Upon adoption, the Company elected the package of transition practical expedients which allowed the Company to carry forward prior conclusions related to: (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases and (iii) initial direct costs for existing leases. Additionally, the Company elected the practical expedient to not separate lease components from nonlease components for all real estate leases within the portfolio. The Company made an accounting policy election to not record leases with an initial term of 12 months or less on the Unaudited Condensed Consolidated Balance Sheets and will recognize related lease payments in the Unaudited Condensed Consolidated Statements of Income on a straight-line basis over the lease term.
In preparation for implementation, the Company executed changes to business processes, including implementing a software solution to assist with the new reporting requirements. The adoption of Topic 842 resulted in a $2.7 billion increase to total assets and total liabilities as of June 1, 2019. Upon adoption, the Company recognized $3.2 billion of total operating lease liabilities and $2.9 billion of operating lease ROU assets, as well as removed $348 million of existing deferred rent liabilities, which was recorded as an offset against the ROU assets. In addition, the Company removed $184 million of existing assets and liabilities related to build-to-suit lease arrangements. Several other asset and liability line items in the Company's Unaudited Condensed Consolidated Balance Sheets were also impacted by immaterial amounts. The adoption of the standard did not have a material impact on the Unaudited Condensed Consolidated Statements of Income or Unaudited Condensed Consolidated Statements of Cash Flows. For more information on the Company's lease arrangements refer to Note 13 — Leases.

7



NOTE 2 — INVENTORIES
Inventory balances of $5,835 million and $5,622 million at August 31, 2019 and May 31, 2019, respectively, were substantially all finished goods.
NOTE 3 — ACCRUED LIABILITIES
Accrued liabilities included the following:
 
AS OF AUGUST 31,
 
AS OF MAY 31,
(Dollars in millions)
2019
 
2019
Sales-related reserves
$
1,157

 
$
1,218

Compensation and benefits, excluding taxes
816

 
1,232

Endorsement compensation
434

 
424

Dividends payable
344

 
346

Import and logistics costs
330

 
296

Taxes other than income taxes payable
274

 
234

Collateral received from counterparties to hedging instruments
263

 
289

Advertising and marketing
132

 
114

Fair value of derivatives
54

 
52

Other(1)
651

 
805

TOTAL ACCRUED LIABILITIES
$
4,455

 
$
5,010

(1)
Other consists of various accrued expenses with no individual item accounting for more than 5% of the total Accrued liabilities balance at August 31, 2019 and May 31, 2019.
NOTE 4 — FAIR VALUE MEASUREMENTS
The Company measures certain financial assets and liabilities at fair value on a recurring basis, including derivatives, equity securities and available-for-sale debt securities. For additional information about the Company's fair value policies refer to Note 1 — Summary of Significant Accounting Policies of the Annual Report on Form 10-K for the fiscal year ended May 31, 2019.
The following tables present information about the Company's financial assets measured at fair value on a recurring basis as of August 31, 2019 and May 31, 2019, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement:
 
AS OF AUGUST 31, 2019
(Dollars in millions)
ASSETS AT FAIR VALUE

CASH AND EQUIVALENTS

SHORT-TERM INVESTMENTS

Cash
$
614

$
614

$

Level 1:
 
 
 
U.S. Treasury securities
361

200

161

Level 2:
 
 
 
Commercial paper and bonds
31


31

Money market funds
1,687

1,687


Time deposits
949

945

4

U.S. Agency securities
2


2

Total Level 2
2,669

2,632

37

TOTAL
$
3,644

$
3,446

$
198



8




 
AS OF MAY 31, 2019
(Dollars in millions)
ASSETS AT FAIR VALUE

CASH AND EQUIVALENTS

SHORT-TERM INVESTMENTS

Cash
$
853

$
853

$

Level 1:
 
 
 
U.S. Treasury securities
347

200

147

Level 2:
 
 
 
Commercial paper and bonds
34

1

33

Money market funds
1,637

1,637


Time deposits
1,791

1,775

16

U.S. Agency securities
1


1

Total Level 2
3,463

3,413

50

TOTAL
$
4,663

$
4,466

$
197


As of August 31, 2019, the Company held $155 million of available-for-sale debt securities with maturity dates within one year and $43 million with maturity dates over one year and less than five years in Short-term investments on the Unaudited Condensed Consolidated Balance Sheets. The fair value of the Company's available-for-sale debt securities approximates their amortized cost.
Included in Interest expense (income), net was interest income related to the Company's investment portfolio of $21 million and $20 million for the three months ended August 31, 2019 and 2018, respectively.
The following tables present information about the Company's derivative assets and liabilities measured at fair value on a recurring basis as of August 31, 2019 and May 31, 2019, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement:
 
AS OF AUGUST 31, 2019
 
DERIVATIVE ASSETS
 
DERIVATIVE LIABILITIES
(Dollars in millions)
ASSETS AT FAIR VALUE

OTHER CURRENT ASSETS

OTHER LONG-TERM ASSETS

 
LIABILITIES AT FAIR VALUE

ACCRUED LIABILITIES

OTHER LONG-TERM LIABILITIES

Level 2:
 
 
 
 
 
 
 
Foreign exchange forwards and options(1)
$
578

$
549

$
29

 
$
55

$
53

$
2

Embedded derivatives
3

3


 
1

1


TOTAL
$
581

$
552

$
29

 
$
56

$
54

$
2

(1)
If the foreign exchange derivative instruments had been netted on the Unaudited Condensed Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $44 million as of August 31, 2019. As of that date, the Company had received $263 million of cash collateral from various counterparties related to foreign exchange derivative instruments. No amount of collateral was posted on the Company's derivative liability balance as of August 31, 2019.
 
AS OF MAY 31, 2019
 
DERIVATIVE ASSETS
 
DERIVATIVE LIABILITIES
(Dollars in millions)
ASSETS AT FAIR VALUE

OTHER CURRENT ASSETS

OTHER LONG-TERM ASSETS

 
LIABILITIES AT FAIR VALUE

ACCRUED LIABILITIES

OTHER LONG-TERM LIABILITIES

Level 2:
 
 
 
 
 
 
 
Foreign exchange forwards and options(1)
$
611

$
611

$

 
$
51

$
51

$

Embedded derivatives
11

5

6

 
3

1

2

TOTAL
$
622

$
616

$
6

 
$
54

$
52

$
2

(1)
If the foreign exchange derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $50 million as of May 31, 2019. As of that date, the Company had received $289 million of cash collateral from various counterparties related to foreign exchange derivative instruments. No amount of collateral was posted on the Company's derivative liability balance as of May 31, 2019.
For additional information related to the Company's derivative financial instruments and credit risk, refer to Note 9 — Risk Management and Derivatives.
The carrying amounts of other current financial assets and other current financial liabilities approximate fair value.

9



FINANCIAL ASSETS AND LIABILITIES NOT RECORDED AT FAIR VALUE
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 $3,820 million at August 31, 2019 and $3,524 million at May 31, 2019.
For fair value information regarding Notes payable, refer to Note 5 — Short-Term Borrowings and Credit Lines.
NOTE 5 — SHORT-TERM BORROWINGS AND CREDIT LINES

The carrying amounts reflected on the Unaudited Condensed Consolidated Balance Sheets for Notes payable approximate fair value.
As of August 31, 2019, the Company had $225 million in borrowings outstanding under its $2 billion commercial paper program at a weighted average rate of 2.10%. No borrowings were outstanding at May 31, 2019. These borrowings are included within Notes payable on the Unaudited Condensed Consolidated Balance Sheets.
On August 16, 2019, the Company entered into a committed credit facility agreement with a syndicate of banks which provides for up to $2 billion of borrowings, with the option to increase borrowings up to $3 billion in total upon lender approval. The facility matures on August 16, 2024, with a one year extension option prior to any anniversary of the closing date, provided that in no event shall it extend beyond August 16, 2026. Based on the Company's current long-term senior unsecured debt ratings of AA- and A1 from Standard and Poor's Corporation and Moody's Investor Services, respectively, the interest rate charged on any outstanding borrowings would be the prevailing London Interbank Offered Rate plus 0.46%. The facility fee is 0.04% of the total commitment. The Company was in compliance with the covenants of the facility at August 31, 2019. This facility replaces the prior $2 billion credit facility agreement entered into on August 28, 2015, which would have matured August 28, 2020. As of and for the period ended August 31, 2019 and May 31, 2019, no amounts were outstanding under either committed credit facility.
There have been no other significant changes to the credit lines reported in the Company's Annual Report on Form 10-K for the fiscal year ended May 31, 2019.
NOTE 6 — INCOME TAXES

The effective tax rate was 12.4% and 14.0% for the three months ended August 31, 2019 and August 31, 2018 respectively. The change in the Company's effective tax rate was due to a change in the proportion of earnings taxed in the United States and discrete items.
As of August 31, 2019, total gross unrecognized tax benefits, excluding related interest and penalties, were $897 million, $624 million of which would affect the Company's effective tax rate if recognized in future periods. The majority of the total gross unrecognized tax benefits are long-term in nature and included within Deferred income taxes and other liabilities on the Unaudited Condensed Consolidated Balance Sheets. As of May 31, 2019, total gross unrecognized tax benefits, excluding related interest and penalties, were $808 million. The liability for payment of interest and penalties decreased by $29 million during the three months ended August 31, 2019. As of August 31, 2019 and May 31, 2019, accrued interest and penalties related to uncertain tax positions were $145 million and $174 million, respectively (excluding federal benefit).
The Company is subject to taxation in the United States, as well as various state and foreign jurisdictions. The Company has closed all U.S. federal income tax matters through fiscal 2016, with the exception of certain transfer pricing adjustments.
The Company's major foreign jurisdictions, China and the Netherlands, have concluded substantially all income tax matters through calendar 2008 and fiscal 2013, respectively. Although the timing of resolution of audits is not certain, the Company evaluates all domestic and foreign audit issues in the aggregate, along with the expiration of applicable statutes of limitations, and estimates that it is reasonably possible the total gross unrecognized tax benefits could decrease by up to $150 million within the next 12 months. In January 2019, the European Commission opened a formal investigation to examine whether the Netherlands has breached State Aid rules when granting certain tax rulings to the Company. The Company believes the investigation is without merit. If this matter is adversely resolved, the Netherlands may be required to assess additional amounts with respect to current and prior periods, and the Company's Netherlands income taxes in the future could increase.


10




NOTE 7 — STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION
The NIKE, Inc. Stock Incentive Plan (the “Stock Incentive Plan”) provides for the issuance of up to 718 million previously unissued shares of Class B Common Stock in connection with equity awards granted under the Stock Incentive Plan. The Stock Incentive Plan authorizes the grant of non-statutory stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units and performance-based awards. In addition to the Stock Incentive Plan, the Company gives employees the right to purchase shares at a discount from the market price under employee stock purchase plans (ESPPs). Refer to Note 11 - Common Stock and Stock-Based Compensation of the Annual Report on Form 10-K for the fiscal year ended May 31, 2019 for further information.
The following table summarizes the Company's total stock-based compensation expense recognized in Cost of sales or Operating overhead expense, as applicable: 
 
THREE MONTHS ENDED AUGUST 31,
(Dollars in millions)
2019
2018
Stock options(1)
$
42

$
20

ESPPs
13

10

Restricted stock
25

11

TOTAL STOCK-BASED COMPENSATION EXPENSE
$
80

$
41

(1)
Expense for stock options includes the expense associated with stock appreciation rights. Accelerated stock option expense is recorded for employees meeting certain retirement eligibility requirements.
The income tax benefit related to stock-based compensation expense was $37 million and $53 million for the three months ended August 31, 2019 and 2018, respectively.
STOCK OPTIONS
The weighted average fair value per share of the options granted during the three months ended August 31, 2019 and 2018, computed as of the grant date using the Black-Scholes pricing model, was $18.33 and $17.44, respectively. The weighted average assumptions used to estimate these fair values were as follows:
 
THREE MONTHS ENDED AUGUST 31,
 
2019
2018
Dividend yield
1.1
%
1.0
%
Expected volatility
22.9
%
19.7
%
Weighted average expected life (in years)
6.0

6.0

Risk-free interest rate
1.7
%
2.9
%

Expected volatilities are based on the historical volatility of the Company's common stock, the implied volatility in market traded options on the Company's common stock with a term greater than one year, as well as other factors. The weighted average expected life of options is based on an analysis of historical and expected future exercise patterns. The interest rate is based on the U.S. Treasury (constant maturity) risk-free rate in effect at the date of grant for periods corresponding with the expected term of the options.
As of August 31, 2019, the Company had $320 million of unrecognized compensation costs from stock options, net of estimated forfeitures, to be recognized in Cost of sales or Operating overhead expense, as applicable, over a weighted average remaining period of 2.6 years.
RESTRICTED STOCK AND RESTRICTED STOCK UNITS
The weighted average fair values per share of restricted stock and restricted stock units granted for the three months ended August 31, 2019 and 2018, computed as of the grant date, was $84.19 and $76.42, respectively. As of August 31, 2019, the Company had $200 million of unrecognized compensation costs from restricted stock and restricted stock units, net of estimated forfeitures, to be recognized in Cost of sales or Operating overhead expense, as applicable, over a weighted average remaining period of 2.5 years.

11



NOTE 8 — EARNINGS PER SHARE
The following is a reconciliation from basic earnings per common share to diluted earnings per common share. The computations of diluted earnings per common share excluded options, including shares under ESPPs, to purchase an additional 19.1 million and 3.1 million shares of common stock outstanding for the three months ended August 31, 2019 and 2018, respectively, because the options were anti-dilutive.
 
THREE MONTHS ENDED AUGUST 31,
(Dollars in millions, except per share data)
2019
2018
Net income available to common stockholders
$
1,367

$
1,092

Determination of shares:
 
 
Weighted average common shares outstanding
1,562.4

1,594.0

Assumed conversion of dilutive stock options and awards
35.1

40.4

DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
1,597.5

1,634.4

Earnings per common share:
 
 
Basic
$
0.87

$
0.69

Diluted
$
0.86

$
0.67


NOTE 9 — RISK MANAGEMENT AND DERIVATIVES
The Company is exposed to global market risks, including the effect of changes in foreign currency exchange rates and interest rates, and uses derivatives to manage financial exposures that occur in the normal course of business. As of and for the three months ended August 31, 2019, there have been no material changes to the Company's hedging program or strategy from what was disclosed within the Annual Report on Form 10-K. For additional information about the Company's derivatives and hedging policies refer to Note 1 — Summary of Significant Accounting Policies and Note 14 - Risk Management and Derivatives of the Annual Report on Form 10-K for the fiscal year ended May 31, 2019.
The majority of derivatives outstanding as of August 31, 2019 are designated as foreign currency cash flow hedges, primarily for Euro/U.S. Dollar, Japanese Yen/U.S. Dollar, British Pound/Euro and Chinese Yuan/U.S. Dollar currency pairs. All derivatives are recognized on the Unaudited Condensed Consolidated Balance Sheets at fair value and classified based on the instrument's maturity date.


12




The following table presents the fair values of derivative instruments included within the Unaudited Condensed Consolidated Balance Sheets as of August 31, 2019 and May 31, 2019:
 
DERIVATIVE ASSETS
 
DERIVATIVE LIABILITIES
 
BALANCE SHEET LOCATION
AUGUST 31,
 
MAY 31,
 
BALANCE SHEET LOCATION
AUGUST 31,
 
MAY 31,
(Dollars in millions)
2019
 
2019
 
2019
 
2019
Derivatives formally designated as hedging instruments:
 
 
 
 
 
 
 
 
 
Foreign exchange forwards and options
Prepaid expenses and other current assets
$
494

 
$
509

 
Accrued liabilities
$
16

 
$
5

Foreign exchange forwards and options
Deferred income taxes and other assets
29

 

 
Deferred income taxes and other liabilities
2

 

Total derivatives formally designated as hedging instruments
 
523

 
509

 
 
18

 
5

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
 
Foreign exchange forwards and options
Prepaid expenses and other current assets
55

 
102

 
Accrued liabilities
37

 
46

Embedded derivatives
Prepaid expenses and other current assets
3

 
5

 
Accrued liabilities
1

 
1

Embedded derivatives
Deferred income taxes and other assets

 
6

 
Deferred income taxes and other liabilities

 
2

Total derivatives not designated as hedging instruments
 
58

 
113

 
 
38

 
49

TOTAL DERIVATIVES
 
$
581

 
$
622

 
 
$
56

 
$
54


The following table presents the amounts in the Unaudited Condensed Consolidated Statements of Income in which the effects of cash flow hedges are recorded and the effects of cash flow hedge activity on these line items for the three months ended August 31, 2019 and 2018:
 
THREE MONTHS ENDED AUGUST 31,
 
2019
 
2018
(Dollars in millions)
TOTAL

AMOUNT OF
GAIN (LOSS)
ON CASH FLOW
HEDGE ACTIVITY

 
TOTAL

AMOUNT OF
GAIN (LOSS)
ON CASH FLOW
HEDGE ACTIVITY

Revenues
$
10,660

$
8

 
$
9,948

$
5

Cost of sales
5,789

75

 
5,551

(44
)
Other (income) expense, net
(33
)
46

 
53

(9
)
Interest expense (income), net
15

(2
)
 
11

(2
)


13



The following tables present the amounts affecting the Unaudited Condensed Consolidated Statements of Income for the three months ended August 31, 2019 and 2018:

(Dollars in millions)
AMOUNT OF GAIN (LOSS)
RECOGNIZED IN OTHER
COMPREHENSIVE INCOME (LOSS) ON DERIVATIVES
(1)
 
AMOUNT OF GAIN (LOSS)
RECLASSIFIED FROM ACCUMULATED
OTHER COMPREHENSIVE
INCOME (LOSS) INTO INCOME
(1)
THREE MONTHS ENDED AUGUST 31,
 
LOCATION OF GAIN (LOSS)
RECLASSIFIED FROM ACCUMULATED
OTHER COMPREHENSIVE INCOME
(LOSS) INTO INCOME
 
THREE MONTHS ENDED AUGUST 31,
2019
2018
 
 
2019
2018
Derivatives designated as
cash flow hedges:
 
 
 
 
 
 
 
Foreign exchange forwards
and options
$
21

$
16

 
Revenues
 
$
8

$
5

Foreign exchange forwards
and options
109

101