Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Nov. 30, 2014 | Jan. 02, 2015 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 30-Nov-14 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | NKE | |
Entity Registrant Name | NIKE INC | |
Entity Central Index Key | 320187 | |
Current Fiscal Year End Date | -26 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock Shares Outstanding (In Shares) | 863,938,522 | |
Class A Convertible Common Stock | ||
Entity Common Stock Shares Outstanding (In Shares) | 177,557,876 | |
Class B Common Stock | ||
Entity Common Stock Shares Outstanding (In Shares) | 686,380,646 |
Unaudited_Condensed_Consolidat
Unaudited Condensed Consolidated Balance Sheets (USD $) | Nov. 30, 2014 | 31-May-14 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and equivalents (Note 4) | $2,273 | $2,220 |
Short-term investments (Note 4) | 2,440 | 2,922 |
Accounts receivable, net | 3,457 | 3,434 |
Inventories (Note 2) | 4,150 | 3,947 |
Deferred income taxes (Note 5) | 334 | 355 |
Prepaid expenses and other current assets (Notes 4 and 8) | 1,379 | 818 |
Total current assets | 14,033 | 13,696 |
Property, plant and equipment, net | 2,927 | 2,834 |
Identifiable intangible assets, net | 281 | 282 |
Goodwill | 131 | 131 |
Deferred income taxes and other assets (Notes 4, 5 and 8) | 1,795 | 1,651 |
TOTAL ASSETS | 19,167 | 18,594 |
Current liabilities: | ||
Current portion of long-term debt (Note 4) | 110 | 7 |
Notes payable (Note 4) | 93 | 167 |
Accounts payable | 2,074 | 1,930 |
Accrued liabilities (Notes 3, 4 and 8) | 2,622 | 2,491 |
Income taxes payable (Note 5) | 38 | 432 |
Total current liabilities | 4,937 | 5,027 |
Long-term debt (Note 4) | 1,084 | 1,199 |
Deferred income taxes and other liabilities (Notes 4, 5 and 8) | 1,446 | 1,544 |
Commitments and contingencies (Note 11) | ||
Redeemable preferred stock | 0 | 0 |
Shareholders’ equity: | ||
Capital in excess of stated value | 6,375 | 5,865 |
Accumulated other comprehensive income (Note 9) | 525 | 85 |
Retained earnings | 4,797 | 4,871 |
Total shareholders’ equity | 11,700 | 10,824 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 19,167 | 18,594 |
Class A Convertible Common Stock | ||
Shareholders’ equity: | ||
Common Stock | 0 | 0 |
Class B Common Stock | ||
Shareholders’ equity: | ||
Common Stock | $3 | $3 |
Unaudited_Condensed_Consolidat1
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) | Nov. 30, 2014 | 31-May-14 |
In Millions, unless otherwise specified | ||
Class A Convertible Common Stock | ||
Common Stock, shares outstanding | 178 | 178 |
Class B Common Stock | ||
Common Stock, shares outstanding | 686 | 692 |
Unaudited_Condensed_Consolidat2
Unaudited Condensed Consolidated Statements Of Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Nov. 30, 2013 |
Revenues | $7,380 | $6,431 | $15,362 | $13,402 |
Cost of sales | 4,053 | 3,605 | 8,314 | 7,444 |
Gross profit | 3,327 | 2,826 | 7,048 | 5,958 |
Demand creation expense | 766 | 691 | 1,663 | 1,422 |
Operating overhead expense | 1,672 | 1,400 | 3,255 | 2,727 |
Total selling and administrative expense | 2,438 | 2,091 | 4,918 | 4,149 |
Interest expense (income), net | 9 | 8 | 18 | 16 |
Other expense (income), net | 2 | 13 | 5 | 41 |
Income before income taxes | 878 | 714 | 2,107 | 1,752 |
Income tax expense (Note 5) | 223 | 180 | 490 | 439 |
NET INCOME | $655 | $534 | $1,617 | $1,313 |
Earnings per common share: | ||||
Basic earnings per common share for NIKE, Inc. (in dollars per share) | $0.76 | $0.60 | $1.87 | $1.48 |
Diluted earnings per common share for NIKE, Inc. (in dollars per share) | $0.74 | $0.59 | $1.83 | $1.44 |
Dividends declared per common share (in dollars per share) | $0.28 | $0.24 | $0.52 | $0.45 |
Unaudited_Condensed_Consolidat3
Unaudited Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Nov. 30, 2013 |
Net income | $655 | $534 | $1,617 | $1,313 |
Other comprehensive income (loss), net of tax: | ||||
Change in net foreign currency translation adjustment | -34 | 14 | -32 | -17 |
Change in net gains (losses) on cash flow hedges | 333 | -100 | 468 | -165 |
Change in net gains (losses) on other | 2 | -1 | 4 | -2 |
Total other comprehensive income (loss), net of tax | 301 | -87 | 440 | -184 |
TOTAL COMPREHENSIVE INCOME | $956 | $447 | $2,057 | $1,129 |
Unaudited_Condensed_Consolidat4
Unaudited Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Nov. 30, 2014 | Nov. 30, 2013 |
Cash provided by operations: | ||
Net income | $1,617 | $1,313 |
Income charges (credits) not affecting cash: | ||
Depreciation | 301 | 246 |
Deferred income taxes | 49 | 24 |
Stock-based compensation (Note 6) | 92 | 88 |
Amortization and other | -54 | 51 |
Changes in certain working capital components and other assets and liabilities: | ||
(Increase) in accounts receivable | -177 | -89 |
(Increase) in inventories | -318 | -277 |
(Increase) in prepaid expenses and other current assets | -58 | -125 |
(Decrease) in accounts payable, accrued liabilities and income taxes payable | -217 | -283 |
Cash provided by operations | 1,235 | 948 |
Cash used by investing activities: | ||
Purchases of short-term investments | -2,588 | -2,848 |
Maturities of short-term investments | 1,862 | 1,662 |
Sales of short-term investments | 1,045 | 546 |
Investments in reverse repurchase agreements | 0 | -100 |
Additions to property, plant and equipment | -487 | -449 |
Disposals of property, plant and equipment | 2 | 1 |
Increase in other assets, net of other liabilities | 0 | -1 |
Cash used by investing activities | -166 | -1,189 |
Cash used by financing activities: | ||
Long-term debt payments, including current portion | -4 | -57 |
(Decrease) increase in notes payable | -58 | 59 |
Payments on capital lease obligations | -12 | 0 |
Proceeds from exercise of stock options and other stock issuances | 313 | 233 |
Excess tax benefits from share-based payment arrangements | 116 | 71 |
Repurchase of common stock | -1,243 | -928 |
Dividends — common and preferred | -416 | -375 |
Cash used by financing activities | -1,304 | -997 |
Effect of exchange rate changes | 288 | -13 |
Net increase (decrease) in cash and equivalents | 53 | -1,251 |
Cash and equivalents, beginning of period | 2,220 | 3,337 |
CASH AND EQUIVALENTS, END OF PERIOD | 2,273 | 2,086 |
Cash paid during the year for: | ||
Non-cash additions to property, plant and equipment | 141 | 117 |
Dividends declared and not paid | $242 | $213 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended | ||||||||||||||||||||||||
Nov. 30, 2014 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||
Summary of Significant Accounting Policies | |||||||||||||||||||||||||
NOTE 1 — Summary of Significant Accounting Policies | |||||||||||||||||||||||||
Basis of Presentation | |||||||||||||||||||||||||
The accompanying Unaudited Condensed Consolidated Financial Statements reflect all normal 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, 2014 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 and six months ended November 30, 2014 are not necessarily indicative of results to be expected for the entire year. | |||||||||||||||||||||||||
Reclassifications | |||||||||||||||||||||||||
Certain prior year amounts have been reclassified to conform to fiscal 2015 presentation. | |||||||||||||||||||||||||
Revisions | |||||||||||||||||||||||||
The Company has historically capitalized costs associated with internally generated patents and trademarks and amortized these assets over the legal term of the patents and trademarks. During the fourth quarter of fiscal 2014, management determined that these capitalized costs were not accurately identified with specific patent or trademark assets and, therefore, concluded that amounts previously capitalized should have been expensed as incurred. Accordingly, the Unaudited Condensed Consolidated Financial Statements have been revised to correctly expense costs associated with internally developed patents and trademarks in the period incurred and to reverse expenses for amortization of previously capitalized costs. The revisions resulted in a decrease in Net income of $3 million and $4 million for the three and six months ended November 30, 2013, respectively. Cash provided by operations decreased $9 million while Cash used by investing activities decreased $9 million for the six months ended November 30, 2013. | |||||||||||||||||||||||||
Also, in the fourth quarter of fiscal 2014, the Company revised certain prior year amounts in the Unaudited Condensed Consolidated Statements of Cash Flows to eliminate intercompany transfers of short-term investments, to correctly reflect the purchases, sales and maturities of short-term investments related to the Company's hedging program involving U.S. Dollar denominated available-for-sale securities and to correctly classify certain investment holdings as Short-term investments. For the six months ended November 30, 2013, the revisions resulted in a net increase in Purchases of short-term investments of $89 million, a net increase in Maturities of short-term investments of $60 million and a net increase in Sales of short-term investments of $29 million. This revision had no impact on Cash used by investing activities or Net increase (decrease) in cash and equivalents. | |||||||||||||||||||||||||
Certain prior year amounts have also been revised in the Unaudited Condensed Consolidated Statements of Cash Flows to correctly recognize the cash flow impacts of certain inventory amounts held by third parties, which were identified during the third quarter of fiscal 2014 and resulted in cash flow impacts of $3 million for both Inventories and Accrued liabilities for the six months ended November 30, 2013. This revision had no impact on Cash provided by operations or Net increase (decrease) in cash and equivalents. | |||||||||||||||||||||||||
The Company also revised certain prior period amounts in the Unaudited Condensed Consolidated Statements of Cash Flows to correctly reflect non-cash additions to property, plant and equipment, which were identified during the second quarter of fiscal 2014. For the six months ended November 30, 2013, this revision increased Cash provided by operations and increased Cash used by investing activities, each by $21 million. | |||||||||||||||||||||||||
The Company assessed the materiality of these misstatements on prior periods’ financial statements in accordance with SEC Staff Accounting Bulletin ("SAB") No. 99, Materiality, codified in Accounting Standards Codification ("ASC") 250, Presentation of Financial Statements, and concluded that these misstatements were not material to any prior annual or interim periods. Accordingly, in accordance with ASC 250 (SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements), the Unaudited Condensed Consolidated Financial Statements as of November 30, 2013, and for the three and six months then ended, which are presented herein, have been revised. The following are selected line items from the Company's Unaudited Condensed Consolidated Financial Statements illustrating the effect of these corrections and the correction of other immaterial errors: | |||||||||||||||||||||||||
NIKE, Inc. Unaudited Condensed Consolidated Statements of Income | |||||||||||||||||||||||||
Three Months Ended November 30, 2013 | Six Months Ended November 30, 2013 | ||||||||||||||||||||||||
(In millions, except per share data) | As Reported | Adjustment | As Revised | As Reported | Adjustment | As Revised | |||||||||||||||||||
Total selling and administrative expense | $ | 2,088 | $ | 3 | $ | 2,091 | $ | 4,144 | $ | 5 | $ | 4,149 | |||||||||||||
Income before income taxes | 717 | (3 | ) | 714 | 1,757 | (5 | ) | 1,752 | |||||||||||||||||
Income tax expense | 180 | — | 180 | 440 | (1 | ) | 439 | ||||||||||||||||||
NET INCOME | $ | 537 | $ | (3 | ) | $ | 534 | $ | 1,317 | $ | (4 | ) | $ | 1,313 | |||||||||||
Earnings per common share: | |||||||||||||||||||||||||
Basic | $ | 0.6 | $ | — | $ | 0.6 | $ | 1.48 | $ | — | $ | 1.48 | |||||||||||||
Diluted | $ | 0.59 | $ | — | $ | 0.59 | $ | 1.45 | $ | (0.01 | ) | $ | 1.44 | ||||||||||||
NIKE, Inc. Unaudited Condensed Consolidated Statements of Comprehensive Income | |||||||||||||||||||||||||
Three Months Ended November 30, 2013 | Six Months Ended November 30, 2013 | ||||||||||||||||||||||||
(In millions) | As Reported | Adjustment | As Revised | As Reported | Adjustment | As Revised | |||||||||||||||||||
Net income | $ | 537 | $ | (3 | ) | $ | 534 | $ | 1,317 | $ | (4 | ) | $ | 1,313 | |||||||||||
TOTAL COMPREHENSIVE INCOME | $ | 450 | $ | (3 | ) | $ | 447 | $ | 1,133 | $ | (4 | ) | $ | 1,129 | |||||||||||
NIKE, Inc. Unaudited Condensed Consolidated Statements of Cash Flows | |||||||||||||||||||||||||
Six Months Ended November 30, 2013 | |||||||||||||||||||||||||
(In millions) | As Reported | Adjustment | As Revised | ||||||||||||||||||||||
Cash provided by operations: | |||||||||||||||||||||||||
Net income | $ | 1,317 | $ | (4 | ) | $ | 1,313 | ||||||||||||||||||
Income charges (credits) not affecting cash: | |||||||||||||||||||||||||
Deferred income taxes | 23 | 1 | 24 | ||||||||||||||||||||||
Amortization and other | 54 | (3 | ) | 51 | |||||||||||||||||||||
(Increase) in inventories | (280 | ) | 3 | (277 | ) | ||||||||||||||||||||
(Decrease) in accounts payable, accrued liabilities and income taxes | (305 | ) | 22 | (283 | ) | ||||||||||||||||||||
Cash provided by operations | 929 | 19 | 948 | ||||||||||||||||||||||
Cash used by investing activities: | |||||||||||||||||||||||||
Purchases of short-term investments | (2,759 | ) | (89 | ) | (2,848 | ) | |||||||||||||||||||
Maturities of short-term investments | 1,602 | 60 | 1,662 | ||||||||||||||||||||||
Sales of short-term investments | 517 | 29 | 546 | ||||||||||||||||||||||
Additions to property, plant and equipment | (428 | ) | (21 | ) | (449 | ) | |||||||||||||||||||
(Increase) in other assets, net of other liabilities | (10 | ) | 9 | (1 | ) | ||||||||||||||||||||
Cash used by investing activities | (1,177 | ) | (12 | ) | (1,189 | ) | |||||||||||||||||||
Cash used by financing activities: | |||||||||||||||||||||||||
(Decrease) increase in notes payable | 66 | (7 | ) | 59 | |||||||||||||||||||||
Cash used by financing activities | (990 | ) | (7 | ) | (997 | ) | |||||||||||||||||||
Net increase (decrease) in cash and equivalents | (1,251 | ) | — | (1,251 | ) | ||||||||||||||||||||
Cash and equivalents, beginning of period | 3,337 | — | 3,337 | ||||||||||||||||||||||
CASH AND EQUIVALENTS, END OF PERIOD | $ | 2,086 | $ | — | $ | 2,086 | |||||||||||||||||||
Recently Issued Accounting Standards | |||||||||||||||||||||||||
In May 2014, the Financial Accounting Standards Board ("FASB") issued an accounting standards update that replaces existing revenue recognition guidance. Among other things, the updated guidance requires companies to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance is effective for the Company beginning June 1, 2017 and early adoption is not permitted. The Company is currently evaluating the effect the guidance will have on the Consolidated Financial Statements. |
Inventories
Inventories | 6 Months Ended |
Nov. 30, 2014 | |
Inventory Disclosure [Abstract] | |
Inventories | |
NOTE 2 — Inventories | |
Inventory balances of $4,150 million and $3,947 million at November 30, 2014 and May 31, 2014, respectively, were substantially all finished goods. |
Accrued_Liabilities
Accrued Liabilities | 6 Months Ended | ||||||||
Nov. 30, 2014 | |||||||||
Accrued Liabilities, Current [Abstract] | |||||||||
Accrued Liabilities | |||||||||
NOTE 3 — Accrued Liabilities | |||||||||
Accrued liabilities included the following: | |||||||||
As of November 30, | As of May 31, | ||||||||
(In millions) | 2014 | 2014 | |||||||
Compensation and benefits, excluding taxes | $ | 666 | $ | 782 | |||||
Endorsement compensation | 295 | 328 | |||||||
Taxes other than income taxes | 245 | 204 | |||||||
Dividends payable | 242 | 209 | |||||||
Collateral received from counterparties to foreign currency hedging instruments | 170 | — | |||||||
Advertising and marketing | 161 | 133 | |||||||
Import and logistics costs | 112 | 127 | |||||||
Fair value of derivatives | 55 | 85 | |||||||
Other(1) | 676 | 623 | |||||||
TOTAL ACCRUED LIABILITIES | $ | 2,622 | $ | 2,491 | |||||
-1 | Other consists of various accrued expenses with no individual item accounting for more than 5% of the total Accrued liabilities balance at November 30, 2014 and May 31, 2014. |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | ||||||||||||||||||||||||
Nov. 30, 2014 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||
NOTE 4 — Fair Value Measurements | |||||||||||||||||||||||||
The Company measures certain financial assets and liabilities at fair value on a recurring basis, including derivatives and available-for-sale securities. Fair value is the price the Company would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. The Company uses the three-level hierarchy established by the FASB that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach and cost approach). | |||||||||||||||||||||||||
The levels of the fair value hierarchy are described below: | |||||||||||||||||||||||||
• | Level 1: Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||||||||||
• | Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets and quoted prices for identical assets or liabilities in markets that are not active. | ||||||||||||||||||||||||
• | Level 3: Unobservable inputs for which there is little or no market data available, which require the reporting entity to develop its own assumptions. | ||||||||||||||||||||||||
The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Financial assets and liabilities are classified in their entirety based on the most conservative level of input that is significant to the fair value measurement. | |||||||||||||||||||||||||
Pricing vendors are utilized for certain Level 1 and Level 2 investments. These vendors either provide a quoted market price in an active market or use observable inputs without applying significant adjustments in their pricing. Observable inputs include broker quotes, interest rates and yield curves observable at commonly quoted intervals, volatilities and credit risks. The Company’s fair value processes include controls that are designed to ensure appropriate fair values are recorded. These controls include a comparison of fair values to another independent pricing vendor. | |||||||||||||||||||||||||
The following tables present information about the Company’s financial assets measured at fair value on a recurring basis as of November 30, 2014 and May 31, 2014, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement. | |||||||||||||||||||||||||
As of November 30, 2014 | |||||||||||||||||||||||||
(In millions) | Assets at Fair Value | Cash and Cash Equivalents | Short-term Investments | Other Long-term Assets | |||||||||||||||||||||
Cash | $ | 780 | $ | 780 | $ | — | $ | — | |||||||||||||||||
Level 1: | |||||||||||||||||||||||||
U.S. Treasury securities | 873 | 25 | 848 | — | |||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||
Time deposits | 302 | 302 | — | — | |||||||||||||||||||||
U.S. Agency securities | 788 | — | 788 | — | |||||||||||||||||||||
Commercial paper and bonds | 854 | 50 | 804 | — | |||||||||||||||||||||
Money market funds | 1,116 | 1,116 | — | — | |||||||||||||||||||||
Total Level 2: | 3,060 | 1,468 | 1,592 | — | |||||||||||||||||||||
Level 3: | |||||||||||||||||||||||||
Non-marketable preferred stock | 6 | — | — | 6 | |||||||||||||||||||||
TOTAL | $ | 4,719 | $ | 2,273 | $ | 2,440 | $ | 6 | |||||||||||||||||
As of May 31, 2014 | |||||||||||||||||||||||||
(In millions) | Assets at Fair Value | Cash and Cash Equivalents | Short-term Investments | Other Long-term Assets | |||||||||||||||||||||
Cash | $ | 780 | $ | 780 | $ | — | $ | — | |||||||||||||||||
Level 1: | |||||||||||||||||||||||||
U.S. Treasury securities | 1,137 | 151 | 986 | — | |||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||
Time deposits | 227 | 227 | — | — | |||||||||||||||||||||
U.S. Agency securities | 1,027 | 25 | 1,002 | — | |||||||||||||||||||||
Commercial paper and bonds | 959 | 25 | 934 | — | |||||||||||||||||||||
Money market funds | 1,012 | 1,012 | — | — | |||||||||||||||||||||
Total Level 2: | 3,225 | 1,289 | 1,936 | — | |||||||||||||||||||||
Level 3: | |||||||||||||||||||||||||
Non-marketable preferred stock | 7 | — | — | 7 | |||||||||||||||||||||
TOTAL | $ | 5,149 | $ | 2,220 | $ | 2,922 | $ | 7 | |||||||||||||||||
The following tables present information about the Company’s derivative assets and liabilities measured at fair value on a recurring basis as of November 30, 2014 and May 31, 2014, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement. | |||||||||||||||||||||||||
As of November 30, 2014 | |||||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||||
(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) | $ | 635 | $ | 465 | $ | 170 | $ | 58 | $ | 55 | $ | 3 | |||||||||||||
Embedded derivatives | 1 | 1 | — | — | — | — | |||||||||||||||||||
Interest rate swap contracts | 4 | 4 | — | — | — | — | |||||||||||||||||||
TOTAL | $ | 640 | $ | 470 | $ | 170 | $ | 58 | $ | 55 | $ | 3 | |||||||||||||
-1 | The Company’s derivative financial instruments are subject to master netting arrangements that allow for the offset of assets and liabilities in the event of default or early termination of the contract. The Company elects to record the gross assets and liabilities of its derivative financial instruments on the Unaudited Condensed Consolidated Balance Sheets. If the derivative financial instruments had been netted on the Unaudited Condensed Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $58 million. At November 30, 2014, the Company had received from various counterparties $170 million of cash collateral; this amount has been recorded in Cash and equivalents and Accrued liabilities, the latter of which would also net against the Company's derivative asset balance. No amount of collateral was posted on the Company’s derivative liability balance. | ||||||||||||||||||||||||
As of May 31, 2014 | |||||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||||
(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) | $ | 127 | $ | 101 | $ | 26 | $ | 85 | $ | 84 | $ | 1 | |||||||||||||
Interest rate swap contracts | 6 | — | 6 | — | — | — | |||||||||||||||||||
TOTAL | $ | 133 | $ | 101 | $ | 32 | $ | 85 | $ | 84 | $ | 1 | |||||||||||||
-1 | The Company’s derivative financial instruments are subject to master netting arrangements that allow for the offset of assets and liabilities in the event of default or early termination of the contract. The Company elects to record the gross assets and liabilities of its derivative financial instruments on the Consolidated Balance Sheets. If the derivative financial instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $63 million. No amounts of collateral were received or posted on the Company’s derivative assets and liabilities as of May 31, 2014. | ||||||||||||||||||||||||
Available-for-sale securities comprise investments in U.S. Treasury and Agency securities, money market funds, corporate commercial paper and bonds. These securities are valued using market prices on both active markets (Level 1) and less active markets (Level 2). The gross realized gains and losses on sales of available-for-sale securities were immaterial for the three and six months ended November 30, 2014 and 2013. Unrealized gains and losses on available-for-sale securities included in Other comprehensive income were immaterial as of November 30, 2014 and May 31, 2014. | |||||||||||||||||||||||||
The Company regularly reviews its available-for-sale securities for other-than-temporary impairment. For the six months ended November 30, 2014 the Company did not consider any of its securities to be other-than-temporarily impaired and accordingly, did not recognize any impairment losses. | |||||||||||||||||||||||||
As of November 30, 2014, the Company held $1,857 million of available-for-sale securities with maturity dates within one year from the purchase date and $583 million with maturity dates over one year and less than five years from the purchase date within Short-term investments. As of May 31, 2014, the Company held $2,287 million of available-for-sale securities with maturity dates within one year from purchase date and $635 million with maturity dates over one year and less than five years from purchase date within Short-term investments. | |||||||||||||||||||||||||
Included in Interest expense (income), net for each of the three months ended November 30, 2014 and 2013 was interest income related to the Company's available-for-sale securities of $2 million and $1 million, respectively, and $3 million and $2 million for each of the six months ended November 30, 2014 and 2013, respectively. | |||||||||||||||||||||||||
The Company’s Level 3 assets comprise investments in certain non-marketable preferred stock. These Level 3 investments are an immaterial portion of the Company's portfolio. Changes in Level 3 investment assets were immaterial during the six months ended November 30, 2014 and the year ended May 31, 2014. | |||||||||||||||||||||||||
Derivative financial instruments include foreign exchange forwards and options, embedded derivatives and interest rate swap contracts. Refer to Note 8 — Risk Management and Derivatives for additional detail. | |||||||||||||||||||||||||
No transfers among the levels within the fair value hierarchy occurred during the six months ended November 30, 2014. | |||||||||||||||||||||||||
As of November 30, 2014 and May 31, 2014, the Company had no assets or liabilities that were required to be measured at fair value on a non-recurring basis. | |||||||||||||||||||||||||
Financial Assets and Liabilities Not Recorded at Fair Value | |||||||||||||||||||||||||
The Company’s long-term debt is recorded at adjusted cost, net of amortized premiums and discounts and interest rate swap fair value adjustments. 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 $1,179 million at November 30, 2014 and $1,154 million at May 31, 2014. | |||||||||||||||||||||||||
The carrying amounts reflected on the Unaudited Condensed Consolidated Balance Sheets for Notes payable approximate fair value. |
Income_Taxes
Income Taxes | 6 Months Ended |
Nov. 30, 2014 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | |
NOTE 5 — Income Taxes | |
The effective tax rate was 23.3% and 25.1% for the six month periods ended November 30, 2014 and 2013, respectively. The decrease in the Company’s effective tax rate was primarily due to the resolution of audits in several jurisdictions and an increase in the proportion of earnings from operations outside of the United States, which are generally subject to a lower tax rate. The decrease was partially offset by adjustments to tax expense on intercompany transactions and the benefit realized in the prior year period from the U.S. research and development tax credit. | |
As of November 30, 2014, total gross unrecognized tax benefits, excluding related interest and penalties, were $444 million, $240 million of which would affect the Company’s effective tax rate if recognized in future periods. As of May 31, 2014, total gross unrecognized tax benefits, excluding related interest and penalties, were $506 million. The liability for payment of interest and penalties decreased $7 million during the six months ended November 30, 2014. As of November 30, 2014 and May 31, 2014, accrued interest and penalties related to uncertain tax positions were $160 million and $167 million, respectively (excluding federal benefit). | |
The Company is subject to taxation primarily in the United States, China, the Netherlands and Brazil, as well as various other state and foreign jurisdictions. The Company has closed all U.S. federal income tax matters through fiscal 2011, with the exception of the validation of foreign tax credits utilized. The Company is currently under audit by the Internal Revenue Service for the 2012 through 2014 tax years. The Company’s major foreign jurisdictions, China, the Netherlands and Brazil, have concluded substantially all income tax matters through calendar 2005, fiscal 2009 and calendar 2008, 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 $39 million within the next 12 months. |
StockBased_Compensation
Stock-Based Compensation | 6 Months Ended | ||||||||||||||||
Nov. 30, 2014 | |||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||
Stock-Based Compensation | |||||||||||||||||
NOTE 6 — Stock-Based Compensation | |||||||||||||||||
In 1990, the Board of Directors adopted, and the shareholders approved, the NIKE, Inc. 1990 Stock Incentive Plan (the “1990 Plan”). The 1990 Plan provides for the issuance of up to 326 million previously unissued shares of Class B Common Stock in connection with stock options and other awards granted under the 1990 Plan. The 1990 Plan authorizes the grant of non-statutory stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units and performance-based awards. The exercise price for stock options and stock appreciation rights may not be less than the fair market value of the underlying shares on the date of grant. A committee of the Board of Directors administers the 1990 Plan. The committee has the authority to determine the employees to whom awards will be made, the amount of the awards and the other terms and conditions of the awards. Substantially all stock option grants outstanding under the 1990 Plan were granted in the first quarter of each fiscal year, vest ratably over four years and expire 10 years from the date of grant. | |||||||||||||||||
In addition to the 1990 Plan, the Company gives employees the right to purchase shares at a discount to the market price under employee stock purchase plans (“ESPPs”). Employees are eligible to participate through payroll deductions of up to 10% of their compensation. At the end of each 6-month offering period, shares are purchased by the participants at 85% of the lower of the fair market value at the beginning or the end of the offering period. | |||||||||||||||||
The Company accounts for stock-based compensation by estimating the fair value of options granted under the 1990 Plan and employees’ purchase rights under the ESPPs using the Black-Scholes option pricing model. The Company recognizes this fair value as Operating overhead expense over the vesting period using the straight-line method. | |||||||||||||||||
The following table summarizes the Company’s total stock-based compensation expense recognized in Operating overhead expense: | |||||||||||||||||
Three Months Ended November 30, | Six Months Ended November 30, | ||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Stock options(1) | $ | 35 | $ | 32 | $ | 65 | $ | 61 | |||||||||
ESPPs | 6 | 6 | 12 | 11 | |||||||||||||
Restricted stock | 8 | 8 | 15 | 16 | |||||||||||||
TOTAL STOCK-BASED COMPENSATION EXPENSE | $ | 49 | $ | 46 | $ | 92 | $ | 88 | |||||||||
-1 | Expense for stock options includes the expense associated with stock appreciation rights. Accelerated stock option expense is recorded for employees eligible for accelerated stock option vesting upon retirement. Accelerated stock option expense for the three month periods ended November 30, 2014 and 2013 was $5 million and $4 million, respectively, and for the six month periods ended November 30, 2014 and 2013 was $9 million and $8 million, respectively. | ||||||||||||||||
As of November 30, 2014, the Company had $251 million of unrecognized compensation costs from stock options, net of estimated forfeitures, to be recognized in Operating overhead expense over a weighted average remaining period of 2.4 years. | |||||||||||||||||
The weighted average fair value per share of the options granted during the six month periods ended November 30, 2014 and 2013, as computed using the Black-Scholes pricing model, was $16.94 and $14.88, respectively. The weighted average assumptions used to estimate these fair values are as follows: | |||||||||||||||||
Six Months Ended November 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Dividend yield | 1.2 | % | 1.3 | % | |||||||||||||
Expected volatility | 23.6 | % | 27.9 | % | |||||||||||||
Weighted average expected life (in years) | 5.8 | 5.3 | |||||||||||||||
Risk-free interest rate | 1.7 | % | 1.3 | % | |||||||||||||
The Company estimates the expected volatility based on the implied volatility in market traded options on the Company’s common stock with a term greater than one year, along with 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. |
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | ||||||||||||||||
Nov. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Earnings Per Share | |||||||||||||||||
NOTE 7 — Earnings Per Share | |||||||||||||||||
The following is a reconciliation from basic earnings per common share to diluted earnings per common share. The computation of diluted earnings per common share omitted options to purchase an additional 9.1 million and 7.9 million shares of common stock outstanding for the three month periods ended November 30, 2014 and 2013, respectively, and options to purchase an additional 0.1 million and 0.1 million shares of common stock outstanding for the six month periods ended November 30, 2014 and 2013, respectively, because the options were anti-dilutive. | |||||||||||||||||
Three Months Ended November 30, | Six Months Ended November 30, | ||||||||||||||||
(In millions, except per share data) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Determination of shares: | |||||||||||||||||
Weighted average common shares outstanding | 863.1 | 888 | 864 | 888.7 | |||||||||||||
Assumed conversion of dilutive stock options and awards | 21.7 | 22.6 | 21.8 | 22 | |||||||||||||
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | 884.8 | 910.6 | 885.8 | 910.7 | |||||||||||||
Earnings per common share: | |||||||||||||||||
Basic | $ | 0.76 | $ | 0.6 | $ | 1.87 | $ | 1.48 | |||||||||
Diluted | $ | 0.74 | $ | 0.59 | $ | 1.83 | $ | 1.44 | |||||||||
Risk_Management_and_Derivative
Risk Management and Derivatives | 6 Months Ended | ||||||||||||||||||||
Nov. 30, 2014 | |||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||
Risk Management and Derivatives | |||||||||||||||||||||
NOTE 8 — 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. The Company does not hold or issue derivatives for trading or speculative purposes. | |||||||||||||||||||||
The Company may elect to designate certain derivatives as hedging instruments under the accounting standards for derivatives and hedging. The Company formally documents all relationships between designated hedging instruments and hedged items as well as its risk management objectives and strategies for undertaking hedge transactions. This process includes linking all derivatives designated as hedges to either recognized assets or liabilities or forecasted transactions. | |||||||||||||||||||||
The majority of derivatives outstanding as of November 30, 2014 are designated as cash flow or fair value hedges. All derivatives are recognized on the Unaudited Condensed Consolidated Balance Sheet at fair value and classified based on the instrument’s maturity date. The total notional amount of outstanding derivatives as of November 30, 2014 was approximately $14.8 billion, which primarily comprises cash flow hedges for Euro/U.S. Dollar, British Pound/Euro, and Japanese Yen/U.S. Dollar currency pairs. As of November 30, 2014, there were outstanding currency forward contracts with maturities up to 24 months. | |||||||||||||||||||||
The following table presents the fair values of derivative instruments included within the Unaudited Condensed Consolidated Balance Sheets as of November 30, 2014 and May 31, 2014: | |||||||||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||
(In millions) | Balance Sheet | November 30, | May 31, | Balance Sheet | November 30, | May 31, | |||||||||||||||
Location | 2014 | 2014 | Location | 2014 | 2014 | ||||||||||||||||
Derivatives formally designated as hedging instruments: | |||||||||||||||||||||
Foreign exchange forwards and options | Prepaid expenses and other current assets | $ | 382 | $ | 76 | Accrued liabilities | $ | 38 | $ | 57 | |||||||||||
Interest rate swap contracts | Prepaid expenses and other current assets | 4 | — | Accrued liabilities | — | — | |||||||||||||||
Foreign exchange forwards and options | Deferred income taxes and other assets | 170 | 26 | Deferred income taxes and other liabilities | 3 | 1 | |||||||||||||||
Interest rate swap contracts | Deferred income taxes and other assets | — | 6 | Deferred income taxes and other liabilities | — | — | |||||||||||||||
Total derivatives formally designated as hedging instruments | 556 | 108 | 41 | 58 | |||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||
Foreign exchange forwards and options | Prepaid expenses and other current assets | 83 | 25 | Accrued liabilities | 17 | 27 | |||||||||||||||
Embedded derivatives | Prepaid expenses and other current assets | 1 | — | Accrued liabilities | — | — | |||||||||||||||
Total derivatives not designated as hedging instruments | 84 | 25 | 17 | 27 | |||||||||||||||||
TOTAL DERIVATIVES | $ | 640 | $ | 133 | $ | 58 | $ | 85 | |||||||||||||
The following tables present the amounts affecting the Unaudited Condensed Consolidated Statements of Income for the three and six months ended November 30, 2014 and 2013: | |||||||||||||||||||||
(In millions) | Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives(1) | Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income(1) | |||||||||||||||||||
Three Months Ended November 30, 2014 | Six Months Ended November 30, 2014 | Location of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income(1) | Three Months Ended November 30, 2014 | Six Months Ended November 30, 2014 | |||||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||||||
Foreign exchange forwards and options | $ | (4 | ) | $ | (42 | ) | Revenues | $ | (19 | ) | $ | (36 | ) | ||||||||
Foreign exchange forwards and options | 280 | 399 | Cost of sales | 21 | 13 | ||||||||||||||||
Foreign exchange forwards and options | — | — | Total selling and administrative expense | — | — | ||||||||||||||||
Foreign exchange forwards and options | 103 | 140 | Other expense (income), net | 13 | 18 | ||||||||||||||||
Total designated cash flow hedges | $ | 379 | $ | 497 | $ | 15 | $ | (5 | ) | ||||||||||||
-1 | For the three and six months ended November 30, 2014, the amounts recorded in Other expense (income), net as a result of hedge ineffectiveness and the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial. | ||||||||||||||||||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives(1) | Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income(1) | ||||||||||||||||||||
(In millions) | Three Months Ended November 30, 2013 | Six Months Ended November 30, 2013 | Location of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income(1) | Three Months Ended November 30, 2013 | Six Months Ended November 30, 2013 | ||||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||||||
Foreign exchange forwards and options | $ | (16 | ) | $ | (19 | ) | Revenues | $ | 7 | $ | 21 | ||||||||||
Foreign exchange forwards and options | (64 | ) | (88 | ) | Cost of sales | 7 | 23 | ||||||||||||||
Foreign exchange forwards and options | 2 | 3 | Total selling and administrative expense | — | — | ||||||||||||||||
Foreign exchange forwards and options | (16 | ) | (23 | ) | Other expense (income), net | 6 | 11 | ||||||||||||||
Total designated cash flow hedges | $ | (94 | ) | $ | (127 | ) | $ | 20 | $ | 55 | |||||||||||
-1 | For the three and six months ended November 30, 2013, the amounts recorded in Other expense (income), net as a result of hedge ineffectiveness and the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial. | ||||||||||||||||||||
Amount of Gain (Loss) Recognized in Income on Derivatives | Location of Gain (Loss) | ||||||||||||||||||||
Three Months Ended November 30, | Six Months Ended November 30, | Recognized in Income on Derivatives | |||||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Derivatives designated as fair value hedges: | |||||||||||||||||||||
Interest rate swaps(1) | $ | 1 | $ | 1 | $ | 2 | $ | 2 | Interest expense (income), net | ||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||
Foreign exchange forwards and options | $ | 185 | $ | (24 | ) | $ | 278 | $ | (39 | ) | Other expense (income), net | ||||||||||
Embedded derivatives | $ | 2 | $ | (1 | ) | $ | 1 | $ | (1 | ) | Other expense (income), net | ||||||||||
-1 | All interest rate swap agreements meet the shortcut method requirements under the accounting standards for derivatives and hedging. Accordingly, changes in the fair values of the interest rate swap agreements are considered to exactly offset changes in the fair value of the underlying long-term debt. Refer to “Fair Value Hedges” in this note for additional detail. | ||||||||||||||||||||
Refer to Note 3 — Accrued Liabilities for derivative instruments recorded in Accrued liabilities, Note 4 — Fair Value Measurements for a description of how the above financial instruments are valued, and Note 9 — Accumulated Other Comprehensive Income for additional information on changes in Other comprehensive income for the three and six months ended November 30, 2014 and 2013. | |||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||
The purpose of the Company’s foreign currency hedging activities is to protect the Company from the risk that the eventual cash flows resulting from transactions in foreign currencies will be adversely affected by changes in exchange rates. Foreign currency exposures that the Company may elect to hedge in this manner include product cost exposures, non-functional currency denominated external and intercompany revenues, selling and administrative expenses, investments in U.S. Dollar-denominated available-for-sale debt securities and certain other intercompany transactions. | |||||||||||||||||||||
Product cost exposures are primarily generated through non-functional currency denominated product purchases and the foreign currency adjustment program described below. NIKE entities primarily purchase products in two ways: (1) Certain NIKE entities purchase product from the NIKE Trading Company (“NTC”), a wholly owned sourcing hub that buys NIKE branded products from third party factories, predominantly in U.S. Dollars. The NTC, whose functional currency is the U.S. Dollar, then sells the products to NIKE entities in their respective functional currencies. When the NTC sells to a NIKE entity with a different functional currency, the result is a foreign currency exposure for the NTC. (2) Other NIKE entities purchase product directly from third party factories in U.S. Dollars. These purchases generate a foreign currency exposure for those NIKE entities with a functional currency other than the U.S. Dollar. | |||||||||||||||||||||
The Company operates a foreign currency adjustment program with certain factories. The program is designed to more effectively manage foreign currency risk by assuming certain of the factories’ foreign currency exposures, some of which are natural offsets to the Company's existing foreign currency exposures. Under this program, the Company’s payments to these factories are adjusted for rate fluctuations in the basket of currencies (“factory currency exposure index”) in which the labor, materials and overhead costs incurred by the factories in the production of NIKE branded products (“factory input costs”) are denominated. For the portion of the indices denominated in the local or functional currency of the factory, the Company may elect to place formally designated cash flow hedges. For all currencies within the indices, excluding the U.S. Dollar and the local or functional currency of the factory, an embedded derivative contract is created upon the factory’s acceptance of NIKE’s purchase order. Embedded derivative contracts are separated from the related purchase order, and their accounting treatment is described further below. | |||||||||||||||||||||
The Company’s policy permits the utilization of derivatives to reduce its foreign currency exposures where internal netting or other strategies cannot be effectively employed. Hedged transactions are denominated primarily in Euros, British Pounds and Japanese Yen. Typically, the Company may enter into hedge contracts starting up to 12 to 24 months in advance of the forecasted transaction and may place incremental hedges up to 100% of the exposure by the time the forecasted transaction occurs. | |||||||||||||||||||||
All changes in fair value of derivatives designated as cash flow hedges, excluding any ineffective portion, are recorded in Other comprehensive income until Net income is affected by the variability of cash flows of the hedged transaction. In most cases, amounts recorded in Other comprehensive income will be released to Net income sometime after the maturity of the related derivative. Effective hedge results are classified within the Unaudited Condensed Consolidated Statements of Income in the same manner as the underlying exposure, with the results of hedges of non-functional currency denominated revenues and product cost exposures, excluding embedded derivatives as described below, recorded in Revenues or Cost of sales, when the underlying hedged transaction affects consolidated Net income. Results of hedges of selling and administrative expense are recorded together with those costs when the related expense is recorded. Results of hedges of anticipated purchases and sales of U.S. Dollar-denominated available-for-sale securities are recorded in Other expense (income), net when the securities are sold. Results of hedges of certain anticipated intercompany transactions are recorded in Other expense (income), net when the transaction occurs. The Company classifies the cash flows at settlement from these designated cash flow hedge derivatives in the same category as the cash flows from the related hedged items, generally within the Cash provided by operations component of the Unaudited Condensed Consolidated Statements of Cash Flows. | |||||||||||||||||||||
Premiums paid on options are initially recorded as deferred charges. The Company assesses the effectiveness of options based on the total cash flows method and records total changes in the options’ fair value to Other comprehensive income to the degree they are effective. | |||||||||||||||||||||
The Company formally assesses, both at a hedge’s inception and on an ongoing basis, whether the derivatives that are used in the hedging transaction have been highly effective in offsetting changes in the cash flows of hedged items and whether those derivatives may be expected to remain highly effective in future periods. Effectiveness for cash flow hedges is assessed based on changes in forward rates. Ineffectiveness was not material for the three and six months ended November 30, 2014 and 2013. | |||||||||||||||||||||
The Company discontinues hedge accounting prospectively when: (1) it determines that the derivative is no longer highly effective in offsetting changes in the cash flows of a hedged item (including hedged items such as firm commitments or forecasted transactions); (2) the derivative expires or is sold, terminated or exercised; (3) it is no longer probable that the forecasted transaction will occur; or (4) management determines that designating the derivative as a hedging instrument is no longer appropriate. | |||||||||||||||||||||
When the Company discontinues hedge accounting because it is no longer probable that the forecasted transaction will occur in the originally expected period, but is expected to occur within an additional two-month period of time thereafter, the gain or loss on the derivative remains in Accumulated other comprehensive income and is reclassified to Net income when the forecasted transaction affects consolidated Net income. However, if it is probable that a forecasted transaction will not occur by the end of the originally specified time period or within an additional two-month period of time thereafter, the gains and losses that were accumulated in Other comprehensive income will be recognized immediately in Other expense (income), net. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Company will carry the derivative at its fair value on the balance sheet, recognizing future changes in the fair value in Other expense (income), net. For the three and six months ended November 30, 2014 and 2013, the amounts recorded in Other expense (income), net as a result of the discontinuance of cash flow hedging because the forecasted transaction was no longer probable of occurring were immaterial. | |||||||||||||||||||||
As of November 30, 2014, $325 million of deferred net gains (net of tax) on both outstanding and matured derivatives accumulated in Other comprehensive income were expected to be reclassified to Net income during the next 12 months concurrent with the underlying hedged transactions also being recorded in Net income. Actual amounts ultimately reclassified to Net income are dependent on the exchange rates in effect when derivative contracts that are currently outstanding mature. As of November 30, 2014, the maximum term over which the Company is hedging exposures to the variability of cash flows for its forecasted transactions was 24 months. | |||||||||||||||||||||
Fair Value Hedges | |||||||||||||||||||||
The Company is also exposed to the risk of changes in the fair value of certain fixed-rate debt attributable to changes in interest rates. Derivatives currently used by the Company to hedge this risk are receive-fixed, pay-variable interest rate swaps. As of November 30, 2014, all interest rate swap agreements are designated as fair value hedges of the related long-term debt, all classified as current as of November 30, 2014, and meet the shortcut method requirements under the accounting standards for derivatives and hedging. Accordingly, changes in the fair values of the interest rate swap agreements are considered to exactly offset changes in the fair value of the underlying long-term debt. The cash flows associated with the Company’s fair value hedges are periodic interest payments while the swaps are outstanding, which are reflected within the Cash provided by operations component of the Unaudited Condensed Consolidated Statements of Cash Flows. The Company recorded no ineffectiveness from its interest rate swaps designated as fair value hedges for the three and six months ended November 30, 2014 or 2013. | |||||||||||||||||||||
Net Investment Hedges | |||||||||||||||||||||
The Company has hedged and may, in the future, hedge the risk of variability in foreign-currency-denominated net investments in wholly owned international operations. All changes in fair value of the derivatives designated as net investment hedges, except ineffective portions, are reported in the cumulative translation adjustment component of Other comprehensive income along with the foreign currency translation adjustments on those investments. The Company classifies the cash flows at settlement of its net investment hedges within the Cash used by investing activities component of the Unaudited Condensed Consolidated Statements of Cash Flows. The Company assesses hedge effectiveness based on changes in forward rates. The Company recorded no ineffectiveness from its net investment hedges for the three and six months ended November 30, 2014 or 2013. | |||||||||||||||||||||
Embedded Derivatives | |||||||||||||||||||||
As part of the foreign currency adjustment program described above, an embedded derivative contract is created upon the factory’s acceptance of NIKE’s purchase order for currencies within the factory currency exposure indices that are neither the U.S. Dollar nor the local or functional currency of the factory. Embedded derivative contracts are treated as foreign currency forward contracts that are bifurcated from the related purchase order and recorded at fair value as a derivative asset or liability on the balance sheet with their corresponding change in fair value recognized in Other expense (income), net from the date a purchase order is accepted by a factory through the date the purchase price is no longer subject to foreign currency fluctuations. At November 30, 2014, the notional amount of embedded derivatives outstanding was approximately $167 million. | |||||||||||||||||||||
Undesignated Derivative Instruments | |||||||||||||||||||||
The Company may elect to enter into foreign exchange forwards to mitigate the change in fair value of specific assets and liabilities on the balance sheet and/or the embedded derivative contracts explained above. These forwards are not designated as hedging instruments under the accounting standards for derivatives and hedging. Accordingly, these undesignated instruments are recorded at fair value as a derivative asset or liability on the Unaudited Condensed Consolidated Balance Sheets with their corresponding change in fair value recognized in Other expense (income), net, together with the re-measurement gain or loss from the hedged balance sheet position or embedded derivative contract. The Company classifies the cash flows at settlement from undesignated instruments in the same category as the cash flows from the related hedged items, generally within the Cash provided by operations component of the Unaudited Condensed Consolidated Statements of Cash Flows. | |||||||||||||||||||||
Credit Risk | |||||||||||||||||||||
The Company is exposed to credit-related losses in the event of nonperformance by counterparties to hedging instruments. The counterparties to all derivative transactions are major financial institutions with investment grade credit ratings. However, this does not eliminate the Company’s exposure to credit risk with these institutions. This credit risk is limited to the unrealized gains in such contracts should any of these counterparties fail to perform as contracted. To manage this risk, the Company has established strict counterparty credit guidelines that are continually monitored. | |||||||||||||||||||||
The Company’s derivative contracts contain credit risk related contingent features designed to protect against significant deterioration in counterparties’ creditworthiness and their ultimate ability to settle outstanding derivative contracts in the normal course of business. The Company’s bilateral credit related contingent features generally require the owing entity, either the Company or the derivative counterparty, to post collateral for the portion of the fair value in excess of $50 million should the fair value of outstanding derivatives per counterparty be greater than $50 million. Additionally, a certain level of decline in credit rating of either the Company or the counterparty could also trigger collateral requirements. As of November 30, 2014, the Company was in compliance with all credit risk related contingent features and had no derivative instruments with credit risk related contingent features in a net liability position. Accordingly, the Company was not required to post any collateral as a result of these contingent features. Further, as of November 30, 2014, those counterparties that were required to post collateral complied with such requirements (refer to Note 4 — Fair Value Measurements). Given the considerations described above, the Company considers the impact of the risk of counterparty default to be immaterial. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 6 Months Ended | ||||||||||||||||||||
Nov. 30, 2014 | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||
Accumulated Other Comprehensive Income | |||||||||||||||||||||
NOTE 9 — Accumulated Other Comprehensive Income | |||||||||||||||||||||
The changes in Accumulated other comprehensive income, net of tax, for the three and six months ended November 30, 2014 were as follows: | |||||||||||||||||||||
(In millions) | Foreign Currency Translation Adjustment(1) | Cash Flow Hedges | Net Investment Hedges(1) | Other | Total | ||||||||||||||||
Balance at August 31, 2014 | $ | 11 | $ | 167 | $ | 95 | $ | (49 | ) | $ | 224 | ||||||||||
Other comprehensive gains (losses) before reclassifications(2) | (34 | ) | 351 | — | 9 | 326 | |||||||||||||||
Reclassifications to net income of previously deferred (gains) losses(3) | — | (18 | ) | — | (7 | ) | (25 | ) | |||||||||||||
Other comprehensive income (loss) | (34 | ) | 333 | — | 2 | 301 | |||||||||||||||
Balance at November 30, 2014 | $ | (23 | ) | $ | 500 | $ | 95 | $ | (47 | ) | $ | 525 | |||||||||
-1 | The accumulated foreign currency translation adjustment and net investment hedge gains/losses related to an investment in a foreign subsidiary are reclassified to Net income upon sale or upon complete or substantially complete liquidation of the respective entity. | ||||||||||||||||||||
-2 | Net of tax benefit (expense) of $11 million, $(28) million, $0 million, $(1) million and $(18) million, respectively. | ||||||||||||||||||||
-3 | Net of tax (benefit) expense of $0 million, $(3) million, $0 million, $2 million and $(1) million, respectively. | ||||||||||||||||||||
(In millions) | Foreign Currency Translation Adjustment(1) | Cash Flow Hedges | Net Investment Hedges(1) | Other | Total | ||||||||||||||||
Balance at May 31, 2014 | $ | 9 | $ | 32 | $ | 95 | $ | (51 | ) | $ | 85 | ||||||||||
Other comprehensive gains (losses) before reclassifications(2) | (32 | ) | 470 | — | 14 | 452 | |||||||||||||||
Reclassifications to net income of previously deferred (gains) losses(3) | — | (2 | ) | — | (10 | ) | (12 | ) | |||||||||||||
Other comprehensive income (loss) | (32 | ) | 468 | — | 4 | 440 | |||||||||||||||
Balance at November 30, 2014 | $ | (23 | ) | $ | 500 | $ | 95 | $ | (47 | ) | $ | 525 | |||||||||
-1 | The accumulated foreign currency translation adjustment and net investment hedge gains/losses related to an investment in a foreign subsidiary are reclassified to Net income upon sale or upon complete or substantially complete liquidation of the respective entity. | ||||||||||||||||||||
-2 | Net of tax benefit (expense) of $0 million, $(27) million, $0 million, $(3) million and $(30) million, respectively. | ||||||||||||||||||||
-3 | Net of tax (benefit) expense of $0 million, $(7) million, $0 million, $3 million and $(4) million, respectively. | ||||||||||||||||||||
The changes in Accumulated other comprehensive income, net of tax, for the three and six months ended November 30, 2013 were as follows: | |||||||||||||||||||||
(In millions) | Foreign Currency Translation Adjustment(1) | Cash Flow Hedges | Net Investment Hedges(1) | Other | Total | ||||||||||||||||
Balance at August 31, 2013 | $ | 10 | $ | 128 | $ | 95 | $ | (56 | ) | $ | 177 | ||||||||||
Other comprehensive gains (losses) before reclassifications(2) | 14 | (85 | ) | — | (2 | ) | (73 | ) | |||||||||||||
Reclassifications to net income of previously deferred (gains) losses(3) | — | (15 | ) | — | 1 | (14 | ) | ||||||||||||||
Other comprehensive income (loss) | 14 | (100 | ) | — | (1 | ) | (87 | ) | |||||||||||||
Balance at November 30, 2013 | $ | 24 | $ | 28 | $ | 95 | $ | (57 | ) | $ | 90 | ||||||||||
-1 | The accumulated foreign currency translation adjustment and net investment hedge gains/losses related to an investment in a foreign subsidiary are reclassified to Net income upon sale or upon complete or substantially complete liquidation of the respective entity. | ||||||||||||||||||||
-2 | Net of tax benefit (expense) of $0 million, $9 million, $0 million, $0 million and $9 million, respectively. | ||||||||||||||||||||
-3 | Net of tax (benefit) expense of $0 million, $5 million, $0 million, $0 million and $5 million, respectively. | ||||||||||||||||||||
(In millions) | Foreign Currency Translation Adjustment(1) | Cash Flow Hedges | Net Investment Hedges(1) | Other | Total | ||||||||||||||||
Balance at May 31, 2013 | $ | 41 | $ | 193 | $ | 95 | $ | (55 | ) | $ | 274 | ||||||||||
Other comprehensive gains (losses) before reclassifications(2) | (17 | ) | (120 | ) | — | (4 | ) | (141 | ) | ||||||||||||
Reclassifications to net income of previously deferred (gains) losses(3) | — | (45 | ) | — | 2 | (43 | ) | ||||||||||||||
Other comprehensive income (loss) | (17 | ) | (165 | ) | — | (2 | ) | (184 | ) | ||||||||||||
Balance at November 30, 2013 | $ | 24 | $ | 28 | $ | 95 | $ | (57 | ) | $ | 90 | ||||||||||
-1 | The accumulated foreign currency translation adjustment and net investment hedge gains/losses related to an investment in a foreign subsidiary are reclassified to Net income upon sale or upon complete or substantially complete liquidation of the respective entity. | ||||||||||||||||||||
-2 | Net of tax benefit (expense) of $0 million, $7 million, $0 million, $0 million and $7 million, respectively. | ||||||||||||||||||||
-3 | Net of tax (benefit) expense of $0 million, $10 million, $0 million, $0 million and $10 million, respectively. | ||||||||||||||||||||
The following table summarizes the reclassifications from Accumulated other comprehensive income to the Unaudited Condensed Consolidated Statements of Income: | |||||||||||||||||||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | |||||||||||||||||||||
Three Months Ended November 30, | Six Months Ended November 30, | Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | |||||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Gains (losses) on cash flow hedges: | |||||||||||||||||||||
Foreign exchange forwards and options | $ | (19 | ) | $ | 7 | $ | (36 | ) | $ | 21 | Revenue | ||||||||||
Foreign exchange forwards and options | 21 | 7 | 13 | 23 | Cost of sales | ||||||||||||||||
Foreign exchange forwards and options | — | — | — | — | Total selling and administrative expense | ||||||||||||||||
Foreign exchange forwards and options | 13 | 6 | 18 | 11 | Other expense (income), net | ||||||||||||||||
Total before tax | 15 | 20 | (5 | ) | 55 | ||||||||||||||||
Tax benefit (expense) | 3 | (5 | ) | 7 | (10 | ) | |||||||||||||||
Gain net of tax | 18 | 15 | 2 | 45 | |||||||||||||||||
Gains (losses) on other | 9 | (1 | ) | 13 | (2 | ) | Other expense (income), net | ||||||||||||||
Total before tax | 9 | (1 | ) | 13 | (2 | ) | |||||||||||||||
Tax (expense) | (2 | ) | — | (3 | ) | — | |||||||||||||||
Gain (loss) net of tax | 7 | (1 | ) | 10 | (2 | ) | |||||||||||||||
Total net gain reclassified for the period | $ | 25 | $ | 14 | $ | 12 | $ | 43 | |||||||||||||
Operating_Segments
Operating Segments | 6 Months Ended | ||||||||||||||||
Nov. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Operating Segments | |||||||||||||||||
NOTE 10 — Operating Segments | |||||||||||||||||
The Company’s operating segments are evidence of the structure of the Company's internal organization. The NIKE Brand segments are defined by geographic regions for operations participating in NIKE Brand and Hurley sales activity. | |||||||||||||||||
Each NIKE Brand geographic segment operates predominantly in one industry: the design, development, marketing and selling of athletic footwear, apparel and equipment. The Company’s reportable operating segments for the NIKE Brand are: North America, Western Europe, Central & Eastern Europe, Greater China, Japan and Emerging Markets. The Company’s NIKE Brand Direct to Consumer operations are managed within each geographic operating segment. Converse is also a reportable segment for NIKE, Inc., and operates in one industry: the design, marketing, licensing and selling of casual sneakers, apparel and accessories. | |||||||||||||||||
Global Brand Divisions is included within the NIKE Brand for presentation purposes to align with the way management views the Company. Global Brand Divisions primarily represent NIKE Brand licensing businesses that are not part of a geographic operating segment, demand creation and operating overhead expenses that are centrally managed for the NIKE Brand and costs associated with product development and supply chain operations. | |||||||||||||||||
Corporate consists largely of unallocated general and administrative expenses, including expenses associated with centrally managed departments; depreciation and amortization related to the Company’s headquarters; and unallocated insurance, benefit and compensation programs, including stock-based compensation; certain foreign currency gains and losses, including certain hedge gains and losses; certain corporate eliminations and other items. | |||||||||||||||||
The primary financial measure used by the Company to evaluate performance of individual operating segments is earnings before interest and taxes (commonly referred to as “EBIT”), which represents Net income before Interest expense (income), net and Income tax expense in the Unaudited Condensed Consolidated Statements of Income. Reconciling items for EBIT represent corporate expense items that are not allocated to the operating segments for management reporting. | |||||||||||||||||
As part of the Company's centrally managed foreign exchange risk management program, standard foreign currency rates are assigned twice per year to each NIKE Brand entity in the Company's geographic operating segments and Converse. These rates are set approximately nine months in advance of the future selling season based on average market spot rates in the calendar month preceding the date they are established. Inventories and Cost of sales for geographic operating segments and Converse reflect use of these standard rates to record non-functional currency product purchases in the entity’s functional currency. Differences between assigned standard foreign currency rates and actual market rates are included in Corporate, together with foreign currency hedge gains and losses generated from the Company's centrally managed foreign exchange risk management program and other conversion gains and losses. | |||||||||||||||||
Accounts receivable, Inventories and Property, plant and equipment, net for operating segments are regularly reviewed by management and are therefore provided below. | |||||||||||||||||
Certain prior year amounts have been reclassified to conform to fiscal 2015 presentation. | |||||||||||||||||
Three Months Ended November 30, | Six Months Ended November 30, | ||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
REVENUES | |||||||||||||||||
North America | $ | 3,241 | $ | 2,801 | $ | 6,754 | $ | 5,936 | |||||||||
Western Europe | 1,312 | 1,074 | 3,026 | 2,375 | |||||||||||||
Central & Eastern Europe | 346 | 295 | 738 | 661 | |||||||||||||
Greater China | 758 | 629 | 1,437 | 1,203 | |||||||||||||
Japan | 199 | 210 | 359 | 368 | |||||||||||||
Emerging Markets | 1,075 | 1,030 | 2,009 | 1,932 | |||||||||||||
Global Brand Divisions | 28 | 31 | 57 | 63 | |||||||||||||
Total NIKE Brand | 6,959 | 6,070 | 14,380 | 12,538 | |||||||||||||
Converse | 434 | 360 | 1,009 | 854 | |||||||||||||
Corporate | (13 | ) | 1 | (27 | ) | 10 | |||||||||||
TOTAL NIKE CONSOLIDATED REVENUES | $ | 7,380 | $ | 6,431 | $ | 15,362 | $ | 13,402 | |||||||||
EARNINGS BEFORE INTEREST AND TAXES | |||||||||||||||||
North America | $ | 785 | $ | 647 | $ | 1,755 | $ | 1,460 | |||||||||
Western Europe | 261 | 123 | 665 | 388 | |||||||||||||
Central & Eastern Europe | 57 | 48 | 125 | 129 | |||||||||||||
Greater China | 258 | 197 | 476 | 367 | |||||||||||||
Japan | 29 | 47 | 40 | 71 | |||||||||||||
Emerging Markets | 236 | 243 | 392 | 453 | |||||||||||||
Global Brand Divisions | (552 | ) | (450 | ) | (1,085 | ) | (916 | ) | |||||||||
Total NIKE Brand | 1,074 | 855 | 2,368 | 1,952 | |||||||||||||
Converse | 88 | 100 | 274 | 269 | |||||||||||||
Corporate | (275 | ) | (233 | ) | (517 | ) | (453 | ) | |||||||||
Total NIKE Consolidated Earnings Before Interest and Taxes | 887 | 722 | 2,125 | 1,768 | |||||||||||||
Interest expense (income), net | 9 | 8 | 18 | 16 | |||||||||||||
TOTAL NIKE CONSOLIDATED EARNINGS BEFORE TAXES | $ | 878 | $ | 714 | $ | 2,107 | $ | 1,752 | |||||||||
As of November 30, | As of May 31, | ||||||||||||||||
(In millions) | 2014 | 2014 | |||||||||||||||
ACCOUNTS RECEIVABLE, NET | |||||||||||||||||
North America | $ | 1,571 | $ | 1,505 | |||||||||||||
Western Europe | 388 | 341 | |||||||||||||||
Central & Eastern Europe | 236 | 280 | |||||||||||||||
Greater China | 147 | 68 | |||||||||||||||
Japan | 115 | 162 | |||||||||||||||
Emerging Markets | 661 | 819 | |||||||||||||||
Global Brand Divisions | 93 | 71 | |||||||||||||||
Total NIKE Brand | 3,211 | 3,246 | |||||||||||||||
Converse | 235 | 171 | |||||||||||||||
Corporate | 11 | 17 | |||||||||||||||
TOTAL ACCOUNTS RECEIVABLE, NET | $ | 3,457 | $ | 3,434 | |||||||||||||
INVENTORIES | |||||||||||||||||
North America | $ | 1,902 | $ | 1,758 | |||||||||||||
Western Europe | 781 | 711 | |||||||||||||||
Central & Eastern Europe | 152 | 271 | |||||||||||||||
Greater China | 269 | 221 | |||||||||||||||
Japan | 103 | 94 | |||||||||||||||
Emerging Markets | 632 | 633 | |||||||||||||||
Global Brand Divisions | 25 | 18 | |||||||||||||||
Total NIKE Brand | 3,864 | 3,706 | |||||||||||||||
Converse | 259 | 261 | |||||||||||||||
Corporate | 27 | (20 | ) | ||||||||||||||
TOTAL INVENTORIES | $ | 4,150 | $ | 3,947 | |||||||||||||
PROPERTY, PLANT AND EQUIPMENT, NET | |||||||||||||||||
North America | $ | 594 | $ | 545 | |||||||||||||
Western Europe | 429 | 384 | |||||||||||||||
Central & Eastern Europe | 48 | 51 | |||||||||||||||
Greater China | 248 | 232 | |||||||||||||||
Japan | 218 | 258 | |||||||||||||||
Emerging Markets | 105 | 115 | |||||||||||||||
Global Brand Divisions | 537 | 537 | |||||||||||||||
Total NIKE Brand | 2,179 | 2,122 | |||||||||||||||
Converse | 92 | 70 | |||||||||||||||
Corporate | 656 | 642 | |||||||||||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET | $ | 2,927 | $ | 2,834 | |||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Nov. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | |
NOTE 11 — Commitments and Contingencies | |
At November 30, 2014, the Company had letters of credit outstanding totaling $129 million. These letters of credit were issued primarily for the purchase of inventory and guarantees of the Company’s performance under certain self-insurance and other programs. | |
During the year ended May 31, 2013, the Company divested of Cole Haan. Preexisting guarantees of certain Cole Haan lease payments remained in place after the sale; the maximum exposure under the guarantees was $28 million at November 30, 2014. The fair value of the guarantees is not material. | |
There have been no other significant subsequent developments relating to the commitments and contingencies reported on the Company's latest Annual Report on Form 10-K. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Nov. 30, 2014 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards |
In May 2014, the Financial Accounting Standards Board ("FASB") issued an accounting standards update that replaces existing revenue recognition guidance. Among other things, the updated guidance requires companies to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance is effective for the Company beginning June 1, 2017 and early adoption is not permitted. The Company is currently evaluating the effect the guidance will have on the Consolidated Financial Statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Nov. 30, 2014 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||
Schedule of Error Corrections and Prior Period Adjustments | The following are selected line items from the Company's Unaudited Condensed Consolidated Financial Statements illustrating the effect of these corrections and the correction of other immaterial errors: | ||||||||||||||||||||||||
NIKE, Inc. Unaudited Condensed Consolidated Statements of Income | |||||||||||||||||||||||||
Three Months Ended November 30, 2013 | Six Months Ended November 30, 2013 | ||||||||||||||||||||||||
(In millions, except per share data) | As Reported | Adjustment | As Revised | As Reported | Adjustment | As Revised | |||||||||||||||||||
Total selling and administrative expense | $ | 2,088 | $ | 3 | $ | 2,091 | $ | 4,144 | $ | 5 | $ | 4,149 | |||||||||||||
Income before income taxes | 717 | (3 | ) | 714 | 1,757 | (5 | ) | 1,752 | |||||||||||||||||
Income tax expense | 180 | — | 180 | 440 | (1 | ) | 439 | ||||||||||||||||||
NET INCOME | $ | 537 | $ | (3 | ) | $ | 534 | $ | 1,317 | $ | (4 | ) | $ | 1,313 | |||||||||||
Earnings per common share: | |||||||||||||||||||||||||
Basic | $ | 0.6 | $ | — | $ | 0.6 | $ | 1.48 | $ | — | $ | 1.48 | |||||||||||||
Diluted | $ | 0.59 | $ | — | $ | 0.59 | $ | 1.45 | $ | (0.01 | ) | $ | 1.44 | ||||||||||||
NIKE, Inc. Unaudited Condensed Consolidated Statements of Comprehensive Income | |||||||||||||||||||||||||
Three Months Ended November 30, 2013 | Six Months Ended November 30, 2013 | ||||||||||||||||||||||||
(In millions) | As Reported | Adjustment | As Revised | As Reported | Adjustment | As Revised | |||||||||||||||||||
Net income | $ | 537 | $ | (3 | ) | $ | 534 | $ | 1,317 | $ | (4 | ) | $ | 1,313 | |||||||||||
TOTAL COMPREHENSIVE INCOME | $ | 450 | $ | (3 | ) | $ | 447 | $ | 1,133 | $ | (4 | ) | $ | 1,129 | |||||||||||
NIKE, Inc. Unaudited Condensed Consolidated Statements of Cash Flows | |||||||||||||||||||||||||
Six Months Ended November 30, 2013 | |||||||||||||||||||||||||
(In millions) | As Reported | Adjustment | As Revised | ||||||||||||||||||||||
Cash provided by operations: | |||||||||||||||||||||||||
Net income | $ | 1,317 | $ | (4 | ) | $ | 1,313 | ||||||||||||||||||
Income charges (credits) not affecting cash: | |||||||||||||||||||||||||
Deferred income taxes | 23 | 1 | 24 | ||||||||||||||||||||||
Amortization and other | 54 | (3 | ) | 51 | |||||||||||||||||||||
(Increase) in inventories | (280 | ) | 3 | (277 | ) | ||||||||||||||||||||
(Decrease) in accounts payable, accrued liabilities and income taxes | (305 | ) | 22 | (283 | ) | ||||||||||||||||||||
Cash provided by operations | 929 | 19 | 948 | ||||||||||||||||||||||
Cash used by investing activities: | |||||||||||||||||||||||||
Purchases of short-term investments | (2,759 | ) | (89 | ) | (2,848 | ) | |||||||||||||||||||
Maturities of short-term investments | 1,602 | 60 | 1,662 | ||||||||||||||||||||||
Sales of short-term investments | 517 | 29 | 546 | ||||||||||||||||||||||
Additions to property, plant and equipment | (428 | ) | (21 | ) | (449 | ) | |||||||||||||||||||
(Increase) in other assets, net of other liabilities | (10 | ) | 9 | (1 | ) | ||||||||||||||||||||
Cash used by investing activities | (1,177 | ) | (12 | ) | (1,189 | ) | |||||||||||||||||||
Cash used by financing activities: | |||||||||||||||||||||||||
(Decrease) increase in notes payable | 66 | (7 | ) | 59 | |||||||||||||||||||||
Cash used by financing activities | (990 | ) | (7 | ) | (997 | ) | |||||||||||||||||||
Net increase (decrease) in cash and equivalents | (1,251 | ) | — | (1,251 | ) | ||||||||||||||||||||
Cash and equivalents, beginning of period | 3,337 | — | 3,337 | ||||||||||||||||||||||
CASH AND EQUIVALENTS, END OF PERIOD | $ | 2,086 | $ | — | $ | 2,086 | |||||||||||||||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 6 Months Ended | ||||||||
Nov. 30, 2014 | |||||||||
Accrued Liabilities, Current [Abstract] | |||||||||
Schedule of Accrued Liabilities | Accrued liabilities included the following: | ||||||||
As of November 30, | As of May 31, | ||||||||
(In millions) | 2014 | 2014 | |||||||
Compensation and benefits, excluding taxes | $ | 666 | $ | 782 | |||||
Endorsement compensation | 295 | 328 | |||||||
Taxes other than income taxes | 245 | 204 | |||||||
Dividends payable | 242 | 209 | |||||||
Collateral received from counterparties to foreign currency hedging instruments | 170 | — | |||||||
Advertising and marketing | 161 | 133 | |||||||
Import and logistics costs | 112 | 127 | |||||||
Fair value of derivatives | 55 | 85 | |||||||
Other(1) | 676 | 623 | |||||||
TOTAL ACCRUED LIABILITIES | $ | 2,622 | $ | 2,491 | |||||
-1 | Other consists of various accrued expenses with no individual item accounting for more than 5% of the total Accrued liabilities balance at November 30, 2014 and May 31, 2014. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Nov. 30, 2014 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present information about the Company’s financial assets measured at fair value on a recurring basis as of November 30, 2014 and May 31, 2014, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement. | ||||||||||||||||||||||||
As of November 30, 2014 | |||||||||||||||||||||||||
(In millions) | Assets at Fair Value | Cash and Cash Equivalents | Short-term Investments | Other Long-term Assets | |||||||||||||||||||||
Cash | $ | 780 | $ | 780 | $ | — | $ | — | |||||||||||||||||
Level 1: | |||||||||||||||||||||||||
U.S. Treasury securities | 873 | 25 | 848 | — | |||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||
Time deposits | 302 | 302 | — | — | |||||||||||||||||||||
U.S. Agency securities | 788 | — | 788 | — | |||||||||||||||||||||
Commercial paper and bonds | 854 | 50 | 804 | — | |||||||||||||||||||||
Money market funds | 1,116 | 1,116 | — | — | |||||||||||||||||||||
Total Level 2: | 3,060 | 1,468 | 1,592 | — | |||||||||||||||||||||
Level 3: | |||||||||||||||||||||||||
Non-marketable preferred stock | 6 | — | — | 6 | |||||||||||||||||||||
TOTAL | $ | 4,719 | $ | 2,273 | $ | 2,440 | $ | 6 | |||||||||||||||||
As of May 31, 2014 | |||||||||||||||||||||||||
(In millions) | Assets at Fair Value | Cash and Cash Equivalents | Short-term Investments | Other Long-term Assets | |||||||||||||||||||||
Cash | $ | 780 | $ | 780 | $ | — | $ | — | |||||||||||||||||
Level 1: | |||||||||||||||||||||||||
U.S. Treasury securities | 1,137 | 151 | 986 | — | |||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||
Time deposits | 227 | 227 | — | — | |||||||||||||||||||||
U.S. Agency securities | 1,027 | 25 | 1,002 | — | |||||||||||||||||||||
Commercial paper and bonds | 959 | 25 | 934 | — | |||||||||||||||||||||
Money market funds | 1,012 | 1,012 | — | — | |||||||||||||||||||||
Total Level 2: | 3,225 | 1,289 | 1,936 | — | |||||||||||||||||||||
Level 3: | |||||||||||||||||||||||||
Non-marketable preferred stock | 7 | — | — | 7 | |||||||||||||||||||||
TOTAL | $ | 5,149 | $ | 2,220 | $ | 2,922 | $ | 7 | |||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following tables present information about the Company’s derivative assets and liabilities measured at fair value on a recurring basis as of November 30, 2014 and May 31, 2014, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement. | ||||||||||||||||||||||||
As of November 30, 2014 | |||||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||||
(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) | $ | 635 | $ | 465 | $ | 170 | $ | 58 | $ | 55 | $ | 3 | |||||||||||||
Embedded derivatives | 1 | 1 | — | — | — | — | |||||||||||||||||||
Interest rate swap contracts | 4 | 4 | — | — | — | — | |||||||||||||||||||
TOTAL | $ | 640 | $ | 470 | $ | 170 | $ | 58 | $ | 55 | $ | 3 | |||||||||||||
-1 | The Company’s derivative financial instruments are subject to master netting arrangements that allow for the offset of assets and liabilities in the event of default or early termination of the contract. The Company elects to record the gross assets and liabilities of its derivative financial instruments on the Unaudited Condensed Consolidated Balance Sheets. If the derivative financial instruments had been netted on the Unaudited Condensed Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $58 million. At November 30, 2014, the Company had received from various counterparties $170 million of cash collateral; this amount has been recorded in Cash and equivalents and Accrued liabilities, the latter of which would also net against the Company's derivative asset balance. No amount of collateral was posted on the Company’s derivative liability balance. | ||||||||||||||||||||||||
As of May 31, 2014 | |||||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||||
(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) | $ | 127 | $ | 101 | $ | 26 | $ | 85 | $ | 84 | $ | 1 | |||||||||||||
Interest rate swap contracts | 6 | — | 6 | — | — | — | |||||||||||||||||||
TOTAL | $ | 133 | $ | 101 | $ | 32 | $ | 85 | $ | 84 | $ | 1 | |||||||||||||
-1 | The Company’s derivative financial instruments are subject to master netting arrangements that allow for the offset of assets and liabilities in the event of default or early termination of the contract. The Company elects to record the gross assets and liabilities of its derivative financial instruments on the Consolidated Balance Sheets. If the derivative financial instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $63 million. No amounts of collateral were received or posted on the Company’s derivative assets and liabilities as of May 31, 2014. | ||||||||||||||||||||||||
The following table presents the fair values of derivative instruments included within the Unaudited Condensed Consolidated Balance Sheets as of November 30, 2014 and May 31, 2014: | |||||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||||
(In millions) | Balance Sheet | November 30, | May 31, | Balance Sheet | November 30, | May 31, | |||||||||||||||||||
Location | 2014 | 2014 | Location | 2014 | 2014 | ||||||||||||||||||||
Derivatives formally designated as hedging instruments: | |||||||||||||||||||||||||
Foreign exchange forwards and options | Prepaid expenses and other current assets | $ | 382 | $ | 76 | Accrued liabilities | $ | 38 | $ | 57 | |||||||||||||||
Interest rate swap contracts | Prepaid expenses and other current assets | 4 | — | Accrued liabilities | — | — | |||||||||||||||||||
Foreign exchange forwards and options | Deferred income taxes and other assets | 170 | 26 | Deferred income taxes and other liabilities | 3 | 1 | |||||||||||||||||||
Interest rate swap contracts | Deferred income taxes and other assets | — | 6 | Deferred income taxes and other liabilities | — | — | |||||||||||||||||||
Total derivatives formally designated as hedging instruments | 556 | 108 | 41 | 58 | |||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||
Foreign exchange forwards and options | Prepaid expenses and other current assets | 83 | 25 | Accrued liabilities | 17 | 27 | |||||||||||||||||||
Embedded derivatives | Prepaid expenses and other current assets | 1 | — | Accrued liabilities | — | — | |||||||||||||||||||
Total derivatives not designated as hedging instruments | 84 | 25 | 17 | 27 | |||||||||||||||||||||
TOTAL DERIVATIVES | $ | 640 | $ | 133 | $ | 58 | $ | 85 | |||||||||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 6 Months Ended | ||||||||||||||||
Nov. 30, 2014 | |||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | The following table summarizes the Company’s total stock-based compensation expense recognized in Operating overhead expense: | ||||||||||||||||
Three Months Ended November 30, | Six Months Ended November 30, | ||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Stock options(1) | $ | 35 | $ | 32 | $ | 65 | $ | 61 | |||||||||
ESPPs | 6 | 6 | 12 | 11 | |||||||||||||
Restricted stock | 8 | 8 | 15 | 16 | |||||||||||||
TOTAL STOCK-BASED COMPENSATION EXPENSE | $ | 49 | $ | 46 | $ | 92 | $ | 88 | |||||||||
-1 | Expense for stock options includes the expense associated with stock appreciation rights. Accelerated stock option expense is recorded for employees eligible for accelerated stock option vesting upon retirement. Accelerated stock option expense for the three month periods ended November 30, 2014 and 2013 was $5 million and $4 million, respectively, and for the six month periods ended November 30, 2014 and 2013 was $9 million and $8 million, respectively. | ||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The weighted average assumptions used to estimate these fair values are as follows: | ||||||||||||||||
Six Months Ended November 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Dividend yield | 1.2 | % | 1.3 | % | |||||||||||||
Expected volatility | 23.6 | % | 27.9 | % | |||||||||||||
Weighted average expected life (in years) | 5.8 | 5.3 | |||||||||||||||
Risk-free interest rate | 1.7 | % | 1.3 | % |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | ||||||||||||||||
Nov. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following is a reconciliation from basic earnings per common share to diluted earnings per common share. The computation of diluted earnings per common share omitted options to purchase an additional 9.1 million and 7.9 million shares of common stock outstanding for the three month periods ended November 30, 2014 and 2013, respectively, and options to purchase an additional 0.1 million and 0.1 million shares of common stock outstanding for the six month periods ended November 30, 2014 and 2013, respectively, because the options were anti-dilutive. | ||||||||||||||||
Three Months Ended November 30, | Six Months Ended November 30, | ||||||||||||||||
(In millions, except per share data) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Determination of shares: | |||||||||||||||||
Weighted average common shares outstanding | 863.1 | 888 | 864 | 888.7 | |||||||||||||
Assumed conversion of dilutive stock options and awards | 21.7 | 22.6 | 21.8 | 22 | |||||||||||||
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | 884.8 | 910.6 | 885.8 | 910.7 | |||||||||||||
Earnings per common share: | |||||||||||||||||
Basic | $ | 0.76 | $ | 0.6 | $ | 1.87 | $ | 1.48 | |||||||||
Diluted | $ | 0.74 | $ | 0.59 | $ | 1.83 | $ | 1.44 | |||||||||
Risk_Management_and_Derivative1
Risk Management and Derivatives (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Nov. 30, 2014 | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following tables present information about the Company’s derivative assets and liabilities measured at fair value on a recurring basis as of November 30, 2014 and May 31, 2014, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement. | ||||||||||||||||||||||||
As of November 30, 2014 | |||||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||||
(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) | $ | 635 | $ | 465 | $ | 170 | $ | 58 | $ | 55 | $ | 3 | |||||||||||||
Embedded derivatives | 1 | 1 | — | — | — | — | |||||||||||||||||||
Interest rate swap contracts | 4 | 4 | — | — | — | — | |||||||||||||||||||
TOTAL | $ | 640 | $ | 470 | $ | 170 | $ | 58 | $ | 55 | $ | 3 | |||||||||||||
-1 | The Company’s derivative financial instruments are subject to master netting arrangements that allow for the offset of assets and liabilities in the event of default or early termination of the contract. The Company elects to record the gross assets and liabilities of its derivative financial instruments on the Unaudited Condensed Consolidated Balance Sheets. If the derivative financial instruments had been netted on the Unaudited Condensed Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $58 million. At November 30, 2014, the Company had received from various counterparties $170 million of cash collateral; this amount has been recorded in Cash and equivalents and Accrued liabilities, the latter of which would also net against the Company's derivative asset balance. No amount of collateral was posted on the Company’s derivative liability balance. | ||||||||||||||||||||||||
As of May 31, 2014 | |||||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||||
(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) | $ | 127 | $ | 101 | $ | 26 | $ | 85 | $ | 84 | $ | 1 | |||||||||||||
Interest rate swap contracts | 6 | — | 6 | — | — | — | |||||||||||||||||||
TOTAL | $ | 133 | $ | 101 | $ | 32 | $ | 85 | $ | 84 | $ | 1 | |||||||||||||
-1 | The Company’s derivative financial instruments are subject to master netting arrangements that allow for the offset of assets and liabilities in the event of default or early termination of the contract. The Company elects to record the gross assets and liabilities of its derivative financial instruments on the Consolidated Balance Sheets. If the derivative financial instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $63 million. No amounts of collateral were received or posted on the Company’s derivative assets and liabilities as of May 31, 2014. | ||||||||||||||||||||||||
The following table presents the fair values of derivative instruments included within the Unaudited Condensed Consolidated Balance Sheets as of November 30, 2014 and May 31, 2014: | |||||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||||
(In millions) | Balance Sheet | November 30, | May 31, | Balance Sheet | November 30, | May 31, | |||||||||||||||||||
Location | 2014 | 2014 | Location | 2014 | 2014 | ||||||||||||||||||||
Derivatives formally designated as hedging instruments: | |||||||||||||||||||||||||
Foreign exchange forwards and options | Prepaid expenses and other current assets | $ | 382 | $ | 76 | Accrued liabilities | $ | 38 | $ | 57 | |||||||||||||||
Interest rate swap contracts | Prepaid expenses and other current assets | 4 | — | Accrued liabilities | — | — | |||||||||||||||||||
Foreign exchange forwards and options | Deferred income taxes and other assets | 170 | 26 | Deferred income taxes and other liabilities | 3 | 1 | |||||||||||||||||||
Interest rate swap contracts | Deferred income taxes and other assets | — | 6 | Deferred income taxes and other liabilities | — | — | |||||||||||||||||||
Total derivatives formally designated as hedging instruments | 556 | 108 | 41 | 58 | |||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||
Foreign exchange forwards and options | Prepaid expenses and other current assets | 83 | 25 | Accrued liabilities | 17 | 27 | |||||||||||||||||||
Embedded derivatives | Prepaid expenses and other current assets | 1 | — | Accrued liabilities | — | — | |||||||||||||||||||
Total derivatives not designated as hedging instruments | 84 | 25 | 17 | 27 | |||||||||||||||||||||
TOTAL DERIVATIVES | $ | 640 | $ | 133 | $ | 58 | $ | 85 | |||||||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following tables present the amounts affecting the Unaudited Condensed Consolidated Statements of Income for the three and six months ended November 30, 2014 and 2013: | ||||||||||||||||||||||||
(In millions) | Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives(1) | Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income(1) | |||||||||||||||||||||||
Three Months Ended November 30, 2014 | Six Months Ended November 30, 2014 | Location of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income(1) | Three Months Ended November 30, 2014 | Six Months Ended November 30, 2014 | |||||||||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||||||||||
Foreign exchange forwards and options | $ | (4 | ) | $ | (42 | ) | Revenues | $ | (19 | ) | $ | (36 | ) | ||||||||||||
Foreign exchange forwards and options | 280 | 399 | Cost of sales | 21 | 13 | ||||||||||||||||||||
Foreign exchange forwards and options | — | — | Total selling and administrative expense | — | — | ||||||||||||||||||||
Foreign exchange forwards and options | 103 | 140 | Other expense (income), net | 13 | 18 | ||||||||||||||||||||
Total designated cash flow hedges | $ | 379 | $ | 497 | $ | 15 | $ | (5 | ) | ||||||||||||||||
-1 | For the three and six months ended November 30, 2014, the amounts recorded in Other expense (income), net as a result of hedge ineffectiveness and the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial. | ||||||||||||||||||||||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives(1) | Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income(1) | ||||||||||||||||||||||||
(In millions) | Three Months Ended November 30, 2013 | Six Months Ended November 30, 2013 | Location of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income(1) | Three Months Ended November 30, 2013 | Six Months Ended November 30, 2013 | ||||||||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||||||||||
Foreign exchange forwards and options | $ | (16 | ) | $ | (19 | ) | Revenues | $ | 7 | $ | 21 | ||||||||||||||
Foreign exchange forwards and options | (64 | ) | (88 | ) | Cost of sales | 7 | 23 | ||||||||||||||||||
Foreign exchange forwards and options | 2 | 3 | Total selling and administrative expense | — | — | ||||||||||||||||||||
Foreign exchange forwards and options | (16 | ) | (23 | ) | Other expense (income), net | 6 | 11 | ||||||||||||||||||
Total designated cash flow hedges | $ | (94 | ) | $ | (127 | ) | $ | 20 | $ | 55 | |||||||||||||||
-1 | For the three and six months ended November 30, 2013, the amounts recorded in Other expense (income), net as a result of hedge ineffectiveness and the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial. | ||||||||||||||||||||||||
Amount of Gain (Loss) Recognized in Income on Derivatives | Location of Gain (Loss) | ||||||||||||||||||||||||
Three Months Ended November 30, | Six Months Ended November 30, | Recognized in Income on Derivatives | |||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Derivatives designated as fair value hedges: | |||||||||||||||||||||||||
Interest rate swaps(1) | $ | 1 | $ | 1 | $ | 2 | $ | 2 | Interest expense (income), net | ||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||
Foreign exchange forwards and options | $ | 185 | $ | (24 | ) | $ | 278 | $ | (39 | ) | Other expense (income), net | ||||||||||||||
Embedded derivatives | $ | 2 | $ | (1 | ) | $ | 1 | $ | (1 | ) | Other expense (income), net | ||||||||||||||
-1 | All interest rate swap agreements meet the shortcut method requirements under the accounting standards for derivatives and hedging. Accordingly, changes in the fair values of the interest rate swap agreements are considered to exactly offset changes in the fair value of the underlying long-term debt. Refer to “Fair Value Hedges” in this note for additional detail. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended | ||||||||||||||||||||
Nov. 30, 2014 | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income | The changes in Accumulated other comprehensive income, net of tax, for the three and six months ended November 30, 2014 were as follows: | ||||||||||||||||||||
(In millions) | Foreign Currency Translation Adjustment(1) | Cash Flow Hedges | Net Investment Hedges(1) | Other | Total | ||||||||||||||||
Balance at August 31, 2014 | $ | 11 | $ | 167 | $ | 95 | $ | (49 | ) | $ | 224 | ||||||||||
Other comprehensive gains (losses) before reclassifications(2) | (34 | ) | 351 | — | 9 | 326 | |||||||||||||||
Reclassifications to net income of previously deferred (gains) losses(3) | — | (18 | ) | — | (7 | ) | (25 | ) | |||||||||||||
Other comprehensive income (loss) | (34 | ) | 333 | — | 2 | 301 | |||||||||||||||
Balance at November 30, 2014 | $ | (23 | ) | $ | 500 | $ | 95 | $ | (47 | ) | $ | 525 | |||||||||
-1 | The accumulated foreign currency translation adjustment and net investment hedge gains/losses related to an investment in a foreign subsidiary are reclassified to Net income upon sale or upon complete or substantially complete liquidation of the respective entity. | ||||||||||||||||||||
-2 | Net of tax benefit (expense) of $11 million, $(28) million, $0 million, $(1) million and $(18) million, respectively. | ||||||||||||||||||||
-3 | Net of tax (benefit) expense of $0 million, $(3) million, $0 million, $2 million and $(1) million, respectively. | ||||||||||||||||||||
(In millions) | Foreign Currency Translation Adjustment(1) | Cash Flow Hedges | Net Investment Hedges(1) | Other | Total | ||||||||||||||||
Balance at May 31, 2014 | $ | 9 | $ | 32 | $ | 95 | $ | (51 | ) | $ | 85 | ||||||||||
Other comprehensive gains (losses) before reclassifications(2) | (32 | ) | 470 | — | 14 | 452 | |||||||||||||||
Reclassifications to net income of previously deferred (gains) losses(3) | — | (2 | ) | — | (10 | ) | (12 | ) | |||||||||||||
Other comprehensive income (loss) | (32 | ) | 468 | — | 4 | 440 | |||||||||||||||
Balance at November 30, 2014 | $ | (23 | ) | $ | 500 | $ | 95 | $ | (47 | ) | $ | 525 | |||||||||
-1 | The accumulated foreign currency translation adjustment and net investment hedge gains/losses related to an investment in a foreign subsidiary are reclassified to Net income upon sale or upon complete or substantially complete liquidation of the respective entity. | ||||||||||||||||||||
-2 | Net of tax benefit (expense) of $0 million, $(27) million, $0 million, $(3) million and $(30) million, respectively. | ||||||||||||||||||||
-3 | Net of tax (benefit) expense of $0 million, $(7) million, $0 million, $3 million and $(4) million, respectively. | ||||||||||||||||||||
The changes in Accumulated other comprehensive income, net of tax, for the three and six months ended November 30, 2013 were as follows: | |||||||||||||||||||||
(In millions) | Foreign Currency Translation Adjustment(1) | Cash Flow Hedges | Net Investment Hedges(1) | Other | Total | ||||||||||||||||
Balance at August 31, 2013 | $ | 10 | $ | 128 | $ | 95 | $ | (56 | ) | $ | 177 | ||||||||||
Other comprehensive gains (losses) before reclassifications(2) | 14 | (85 | ) | — | (2 | ) | (73 | ) | |||||||||||||
Reclassifications to net income of previously deferred (gains) losses(3) | — | (15 | ) | — | 1 | (14 | ) | ||||||||||||||
Other comprehensive income (loss) | 14 | (100 | ) | — | (1 | ) | (87 | ) | |||||||||||||
Balance at November 30, 2013 | $ | 24 | $ | 28 | $ | 95 | $ | (57 | ) | $ | 90 | ||||||||||
-1 | The accumulated foreign currency translation adjustment and net investment hedge gains/losses related to an investment in a foreign subsidiary are reclassified to Net income upon sale or upon complete or substantially complete liquidation of the respective entity. | ||||||||||||||||||||
-2 | Net of tax benefit (expense) of $0 million, $9 million, $0 million, $0 million and $9 million, respectively. | ||||||||||||||||||||
-3 | Net of tax (benefit) expense of $0 million, $5 million, $0 million, $0 million and $5 million, respectively. | ||||||||||||||||||||
(In millions) | Foreign Currency Translation Adjustment(1) | Cash Flow Hedges | Net Investment Hedges(1) | Other | Total | ||||||||||||||||
Balance at May 31, 2013 | $ | 41 | $ | 193 | $ | 95 | $ | (55 | ) | $ | 274 | ||||||||||
Other comprehensive gains (losses) before reclassifications(2) | (17 | ) | (120 | ) | — | (4 | ) | (141 | ) | ||||||||||||
Reclassifications to net income of previously deferred (gains) losses(3) | — | (45 | ) | — | 2 | (43 | ) | ||||||||||||||
Other comprehensive income (loss) | (17 | ) | (165 | ) | — | (2 | ) | (184 | ) | ||||||||||||
Balance at November 30, 2013 | $ | 24 | $ | 28 | $ | 95 | $ | (57 | ) | $ | 90 | ||||||||||
-1 | The accumulated foreign currency translation adjustment and net investment hedge gains/losses related to an investment in a foreign subsidiary are reclassified to Net income upon sale or upon complete or substantially complete liquidation of the respective entity. | ||||||||||||||||||||
-2 | Net of tax benefit (expense) of $0 million, $7 million, $0 million, $0 million and $7 million, respectively. | ||||||||||||||||||||
-3 | Net of tax (benefit) expense of $0 million, $10 million, $0 million, $0 million and $10 million, respectively. | ||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | The following table summarizes the reclassifications from Accumulated other comprehensive income to the Unaudited Condensed Consolidated Statements of Income: | ||||||||||||||||||||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | |||||||||||||||||||||
Three Months Ended November 30, | Six Months Ended November 30, | Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | |||||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Gains (losses) on cash flow hedges: | |||||||||||||||||||||
Foreign exchange forwards and options | $ | (19 | ) | $ | 7 | $ | (36 | ) | $ | 21 | Revenue | ||||||||||
Foreign exchange forwards and options | 21 | 7 | 13 | 23 | Cost of sales | ||||||||||||||||
Foreign exchange forwards and options | — | — | — | — | Total selling and administrative expense | ||||||||||||||||
Foreign exchange forwards and options | 13 | 6 | 18 | 11 | Other expense (income), net | ||||||||||||||||
Total before tax | 15 | 20 | (5 | ) | 55 | ||||||||||||||||
Tax benefit (expense) | 3 | (5 | ) | 7 | (10 | ) | |||||||||||||||
Gain net of tax | 18 | 15 | 2 | 45 | |||||||||||||||||
Gains (losses) on other | 9 | (1 | ) | 13 | (2 | ) | Other expense (income), net | ||||||||||||||
Total before tax | 9 | (1 | ) | 13 | (2 | ) | |||||||||||||||
Tax (expense) | (2 | ) | — | (3 | ) | — | |||||||||||||||
Gain (loss) net of tax | 7 | (1 | ) | 10 | (2 | ) | |||||||||||||||
Total net gain reclassified for the period | $ | 25 | $ | 14 | $ | 12 | $ | 43 | |||||||||||||
Operating_Segments_Tables
Operating Segments (Tables) | 6 Months Ended | ||||||||||||||||
Nov. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Schedule of Segment Reporting Information, by Segment | |||||||||||||||||
Three Months Ended November 30, | Six Months Ended November 30, | ||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
REVENUES | |||||||||||||||||
North America | $ | 3,241 | $ | 2,801 | $ | 6,754 | $ | 5,936 | |||||||||
Western Europe | 1,312 | 1,074 | 3,026 | 2,375 | |||||||||||||
Central & Eastern Europe | 346 | 295 | 738 | 661 | |||||||||||||
Greater China | 758 | 629 | 1,437 | 1,203 | |||||||||||||
Japan | 199 | 210 | 359 | 368 | |||||||||||||
Emerging Markets | 1,075 | 1,030 | 2,009 | 1,932 | |||||||||||||
Global Brand Divisions | 28 | 31 | 57 | 63 | |||||||||||||
Total NIKE Brand | 6,959 | 6,070 | 14,380 | 12,538 | |||||||||||||
Converse | 434 | 360 | 1,009 | 854 | |||||||||||||
Corporate | (13 | ) | 1 | (27 | ) | 10 | |||||||||||
TOTAL NIKE CONSOLIDATED REVENUES | $ | 7,380 | $ | 6,431 | $ | 15,362 | $ | 13,402 | |||||||||
EARNINGS BEFORE INTEREST AND TAXES | |||||||||||||||||
North America | $ | 785 | $ | 647 | $ | 1,755 | $ | 1,460 | |||||||||
Western Europe | 261 | 123 | 665 | 388 | |||||||||||||
Central & Eastern Europe | 57 | 48 | 125 | 129 | |||||||||||||
Greater China | 258 | 197 | 476 | 367 | |||||||||||||
Japan | 29 | 47 | 40 | 71 | |||||||||||||
Emerging Markets | 236 | 243 | 392 | 453 | |||||||||||||
Global Brand Divisions | (552 | ) | (450 | ) | (1,085 | ) | (916 | ) | |||||||||
Total NIKE Brand | 1,074 | 855 | 2,368 | 1,952 | |||||||||||||
Converse | 88 | 100 | 274 | 269 | |||||||||||||
Corporate | (275 | ) | (233 | ) | (517 | ) | (453 | ) | |||||||||
Total NIKE Consolidated Earnings Before Interest and Taxes | 887 | 722 | 2,125 | 1,768 | |||||||||||||
Interest expense (income), net | 9 | 8 | 18 | 16 | |||||||||||||
TOTAL NIKE CONSOLIDATED EARNINGS BEFORE TAXES | $ | 878 | $ | 714 | $ | 2,107 | $ | 1,752 | |||||||||
Reconciliation of Assets from Segment to Consolidated | |||||||||||||||||
As of November 30, | As of May 31, | ||||||||||||||||
(In millions) | 2014 | 2014 | |||||||||||||||
ACCOUNTS RECEIVABLE, NET | |||||||||||||||||
North America | $ | 1,571 | $ | 1,505 | |||||||||||||
Western Europe | 388 | 341 | |||||||||||||||
Central & Eastern Europe | 236 | 280 | |||||||||||||||
Greater China | 147 | 68 | |||||||||||||||
Japan | 115 | 162 | |||||||||||||||
Emerging Markets | 661 | 819 | |||||||||||||||
Global Brand Divisions | 93 | 71 | |||||||||||||||
Total NIKE Brand | 3,211 | 3,246 | |||||||||||||||
Converse | 235 | 171 | |||||||||||||||
Corporate | 11 | 17 | |||||||||||||||
TOTAL ACCOUNTS RECEIVABLE, NET | $ | 3,457 | $ | 3,434 | |||||||||||||
INVENTORIES | |||||||||||||||||
North America | $ | 1,902 | $ | 1,758 | |||||||||||||
Western Europe | 781 | 711 | |||||||||||||||
Central & Eastern Europe | 152 | 271 | |||||||||||||||
Greater China | 269 | 221 | |||||||||||||||
Japan | 103 | 94 | |||||||||||||||
Emerging Markets | 632 | 633 | |||||||||||||||
Global Brand Divisions | 25 | 18 | |||||||||||||||
Total NIKE Brand | 3,864 | 3,706 | |||||||||||||||
Converse | 259 | 261 | |||||||||||||||
Corporate | 27 | (20 | ) | ||||||||||||||
TOTAL INVENTORIES | $ | 4,150 | $ | 3,947 | |||||||||||||
PROPERTY, PLANT AND EQUIPMENT, NET | |||||||||||||||||
North America | $ | 594 | $ | 545 | |||||||||||||
Western Europe | 429 | 384 | |||||||||||||||
Central & Eastern Europe | 48 | 51 | |||||||||||||||
Greater China | 248 | 232 | |||||||||||||||
Japan | 218 | 258 | |||||||||||||||
Emerging Markets | 105 | 115 | |||||||||||||||
Global Brand Divisions | 537 | 537 | |||||||||||||||
Total NIKE Brand | 2,179 | 2,122 | |||||||||||||||
Converse | 92 | 70 | |||||||||||||||
Corporate | 656 | 642 | |||||||||||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET | $ | 2,927 | $ | 2,834 | |||||||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Revisions (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Nov. 30, 2013 | 31-May-14 |
Short-term investments | $2,440 | $2,440 | $2,922 | ||
Net Income (Loss) [Abstract] | |||||
Total selling and administrative expense | 2,438 | 2,091 | 4,918 | 4,149 | |
Total before tax | 878 | 714 | 2,107 | 1,752 | |
Income tax expense | 223 | 180 | 490 | 439 | |
Net income | 655 | 534 | 1,617 | 1,313 | |
Basic earnings per common share for NIKE, Inc. (in dollars per share) | $0.76 | $0.60 | $1.87 | $1.48 | |
Diluted earnings per common share for NIKE, Inc. (in dollars per share) | $0.74 | $0.59 | $1.83 | $1.44 | |
Comprehensive Income [Abstract] | |||||
Net income | 655 | 534 | 1,617 | 1,313 | |
TOTAL COMPREHENSIVE INCOME | 956 | 447 | 2,057 | 1,129 | |
Cash provided by operations: | |||||
Net income | -655 | -534 | -1,617 | -1,313 | |
Deferred income taxes | 49 | 24 | |||
Amortization and other | -54 | 51 | |||
(Increase) in inventories | -318 | -277 | |||
(Decrease) in accounts payable, accrued liabilities and income taxes payable | -217 | -283 | |||
Cash provided by operations | 1,235 | 948 | |||
Cash used by investing activities: | |||||
Purchases of short-term investments | 2,588 | 2,848 | |||
Maturities of short-term investments | 1,862 | 1,662 | |||
Sales of short-term investments | 1,045 | 546 | |||
Additions to property, plant and equipment | 487 | 449 | |||
Increase in other assets, net of other liabilities | 0 | -1 | |||
Cash (used) provided by investing activities | -166 | -1,189 | |||
Cash used by financing activities: | |||||
(Decrease) increase in notes payable | -58 | 59 | |||
Cash used by financing activities | -1,304 | -997 | |||
Net increase (decrease) in cash and equivalents | 53 | -1,251 | |||
Cash and equivalents, beginning of period | 2,220 | 3,337 | |||
CASH AND EQUIVALENTS, END OF PERIOD | 2,273 | 2,086 | 2,273 | 2,086 | |
As Reported | |||||
Net Income (Loss) [Abstract] | |||||
Total selling and administrative expense | 2,088 | 4,144 | |||
Total before tax | 717 | 1,757 | |||
Income tax expense | 180 | 440 | |||
Net income | 537 | 1,317 | |||
Basic earnings per common share for NIKE, Inc. (in dollars per share) | $0.60 | $1.48 | |||
Diluted earnings per common share for NIKE, Inc. (in dollars per share) | $0.59 | $1.45 | |||
Comprehensive Income [Abstract] | |||||
Net income | 537 | 1,317 | |||
TOTAL COMPREHENSIVE INCOME | 450 | 1,133 | |||
Cash provided by operations: | |||||
Net income | -537 | -1,317 | |||
Deferred income taxes | 23 | ||||
Amortization and other | 54 | ||||
(Increase) in inventories | -280 | ||||
(Decrease) in accounts payable, accrued liabilities and income taxes payable | -305 | ||||
Cash provided by operations | 929 | ||||
Cash used by investing activities: | |||||
Purchases of short-term investments | 2,759 | ||||
Maturities of short-term investments | 1,602 | ||||
Sales of short-term investments | 517 | ||||
Additions to property, plant and equipment | 428 | ||||
Increase in other assets, net of other liabilities | -10 | ||||
Cash (used) provided by investing activities | -1,177 | ||||
Cash used by financing activities: | |||||
(Decrease) increase in notes payable | 66 | ||||
Cash used by financing activities | -990 | ||||
Net increase (decrease) in cash and equivalents | -1,251 | ||||
Cash and equivalents, beginning of period | 3,337 | ||||
CASH AND EQUIVALENTS, END OF PERIOD | 2,086 | 2,086 | |||
Adjustment | |||||
Net Income (Loss) [Abstract] | |||||
Total selling and administrative expense | 3 | 5 | |||
Total before tax | -3 | -5 | |||
Income tax expense | 0 | -1 | |||
Net income | -3 | -4 | |||
Basic earnings per common share for NIKE, Inc. (in dollars per share) | $0 | $0 | |||
Diluted earnings per common share for NIKE, Inc. (in dollars per share) | $0 | ($0.01) | |||
Comprehensive Income [Abstract] | |||||
Net income | -3 | -4 | |||
TOTAL COMPREHENSIVE INCOME | -3 | -4 | |||
Cash provided by operations: | |||||
Net income | 3 | 4 | |||
Deferred income taxes | 1 | ||||
Amortization and other | -3 | ||||
(Increase) in inventories | 3 | ||||
(Decrease) in accounts payable, accrued liabilities and income taxes payable | 22 | ||||
Cash provided by operations | 19 | ||||
Cash used by investing activities: | |||||
Purchases of short-term investments | 89 | ||||
Maturities of short-term investments | 60 | ||||
Sales of short-term investments | 29 | ||||
Additions to property, plant and equipment | 21 | ||||
Increase in other assets, net of other liabilities | 9 | ||||
Cash (used) provided by investing activities | -12 | ||||
Cash used by financing activities: | |||||
(Decrease) increase in notes payable | -7 | ||||
Cash used by financing activities | -7 | ||||
Net increase (decrease) in cash and equivalents | 0 | ||||
Cash and equivalents, beginning of period | 0 | ||||
CASH AND EQUIVALENTS, END OF PERIOD | 0 | 0 | |||
Prior Year Revision To Capitalized Costs | Adjustment | |||||
Net Income (Loss) [Abstract] | |||||
Net income | -3 | -4 | |||
Comprehensive Income [Abstract] | |||||
Net income | -3 | -4 | |||
Cash provided by operations: | |||||
Net income | 3 | 4 | |||
Cash provided by operations | -9 | ||||
Cash used by investing activities: | |||||
Cash (used) provided by investing activities | -9 | ||||
Prior Year Revision To Short-term Investments | Adjustment | |||||
Cash used by investing activities: | |||||
Purchases of short-term investments | 89 | ||||
Maturities of short-term investments | 60 | ||||
Sales of short-term investments | 29 | ||||
Prior Year Revision to Inventory Amounts | Adjustment | |||||
Cash flow impact on accrued liabilities | -3 | ||||
Cash provided by operations: | |||||
(Increase) in inventories | 3 | ||||
Prior Period Revisions to Non-cash Property Plant And Equipment Additions | Adjustment | |||||
Cash provided by operations: | |||||
Cash provided by operations | $21 |
Inventories_Additional_Informa
Inventories - Additional Information (Detail) (USD $) | Nov. 30, 2014 | 31-May-14 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Inventory balances (substantially all finished goods) | $4,150 | $3,947 |
Accrued_Liabilities_Detail
Accrued Liabilities (Detail) (USD $) | Nov. 30, 2014 | 31-May-14 | ||
In Millions, unless otherwise specified | ||||
Accrued Liabilities, Current [Abstract] | ||||
Compensation and benefits, excluding taxes | $666 | $782 | ||
Endorsement compensation | 295 | 328 | ||
Dividends payable | 245 | 204 | ||
Taxes other than income taxes | 242 | 209 | ||
Collateral received from counterparties to foreign currency hedging instruments | 170 | 0 | ||
Advertising and marketing | 161 | 133 | ||
Import and logistics costs | 112 | 127 | ||
Fair value of derivatives | 55 | 85 | ||
Other | 676 | [1] | 623 | [1] |
TOTAL ACCRUED LIABILITIES | $2,622 | $2,491 | ||
Maximum percent of accrued liabilities to be included in Other (percent) | 5.00% | 5.00% | ||
[1] | Other consists of various accrued expenses with no individual item accounting for more than 5% of the total Accrued liabilities balance at November 30, 2014 and May 31, 2014. |
Fair_Value_Measurements_Financ
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, USD $) | Nov. 30, 2014 | 31-May-14 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Cash | $780 | $780 |
Assets at Fair Value | 4,719 | 5,149 |
Cash and Cash Equivalents | 2,273 | 2,220 |
Short-term Investments | 2,440 | 2,922 |
Other Long-term Assets | 6 | 7 |
Fair Value Measurements Using Level 1 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets at Fair Value | 873 | 1,137 |
Cash and Cash Equivalents | 25 | 151 |
Short-term Investments | 848 | 986 |
Other Long-term Assets | 0 | 0 |
Fair Value Measurements Using Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets at Fair Value | 3,060 | 3,225 |
Cash and Cash Equivalents | 1,468 | 1,289 |
Short-term Investments | 1,592 | 1,936 |
Other Long-term Assets | 0 | 0 |
Fair Value Measurements Using Level 2 | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets at Fair Value | 302 | 227 |
Cash and Cash Equivalents | 302 | 227 |
Short-term Investments | 0 | 0 |
Other Long-term Assets | 0 | 0 |
Fair Value Measurements Using Level 2 | U.S. Agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets at Fair Value | 788 | 1,027 |
Cash and Cash Equivalents | 0 | 25 |
Short-term Investments | 788 | 1,002 |
Other Long-term Assets | 0 | 0 |
Fair Value Measurements Using Level 2 | Commercial paper and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets at Fair Value | 854 | 959 |
Cash and Cash Equivalents | 50 | 25 |
Short-term Investments | 804 | 934 |
Other Long-term Assets | 0 | 0 |
Fair Value Measurements Using Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets at Fair Value | 1,116 | 1,012 |
Cash and Cash Equivalents | 1,116 | 1,012 |
Short-term Investments | 0 | 0 |
Other Long-term Assets | 0 | 0 |
Fair Value Measurements Using Level 3 | Non-marketable preferred stock | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Assets at Fair Value | 6 | 7 |
Cash and Cash Equivalents | 0 | 0 |
Short-term Investments | 0 | 0 |
Other Long-term Assets | $6 | $7 |
Fair_Value_Measurements_Deriva
Fair Value Measurements - Derivative Assets and Liabilities at Fair Value (Detail) (USD $) | Nov. 30, 2014 | 31-May-14 | ||
In Millions, unless otherwise specified | ||||
Derivatives, Fair Value [Line Items] | ||||
Accrued Liabilities | $55 | $85 | ||
Collateral received from counterparties to foreign currency hedging instruments | 170 | 0 | ||
Fair Value, Measurements, Recurring | ||||
Derivatives, Fair Value [Line Items] | ||||
Reduction in derivative assets if netted | 58 | 63 | ||
Reduction in derivative liabilities if netted | 58 | 63 | ||
Fair Value Measurements Using Level 2 | Fair Value, Measurements, Recurring | ||||
Derivatives, Fair Value [Line Items] | ||||
Assets at Fair Value | 640 | 133 | ||
Other Current Assets | 470 | 101 | ||
Other Long-term Assets | 170 | 32 | ||
Liabilities at Fair Value | 58 | 85 | ||
Accrued Liabilities | 55 | 84 | ||
Other Long-term Liabilities | 3 | 1 | ||
Fair Value Measurements Using Level 2 | Fair Value, Measurements, Recurring | Foreign exchange forwards and options | ||||
Derivatives, Fair Value [Line Items] | ||||
Assets at Fair Value | 635 | [1] | 127 | [2] |
Other Current Assets | 465 | [1] | 101 | [2] |
Other Long-term Assets | 170 | [1] | 26 | [2] |
Liabilities at Fair Value | 58 | [1] | 85 | [2] |
Accrued Liabilities | 55 | [1] | 84 | [2] |
Other Long-term Liabilities | 3 | [1] | 1 | [2] |
Fair Value Measurements Using Level 2 | Fair Value, Measurements, Recurring | Embedded derivatives | ||||
Derivatives, Fair Value [Line Items] | ||||
Assets at Fair Value | 1 | |||
Other Current Assets | 1 | |||
Other Long-term Assets | 0 | |||
Liabilities at Fair Value | 0 | |||
Accrued Liabilities | 0 | |||
Other Long-term Liabilities | 0 | |||
Fair Value Measurements Using Level 2 | Fair Value, Measurements, Recurring | Interest rate swap contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Assets at Fair Value | 4 | 6 | ||
Other Current Assets | 4 | 0 | ||
Other Long-term Assets | 0 | 6 | ||
Liabilities at Fair Value | 0 | 0 | ||
Accrued Liabilities | 0 | 0 | ||
Other Long-term Liabilities | 0 | 0 | ||
Cash and Cash Equivalents and Accrued Liabilities | Foreign exchange forwards and options | ||||
Derivatives, Fair Value [Line Items] | ||||
Collateral received from counterparties to foreign currency hedging instruments | $170 | |||
[1] | The Company’s derivative financial instruments are subject to master netting arrangements that allow for the offset of assets and liabilities in the event of default or early termination of the contract. The Company elects to record the gross assets and liabilities of its derivative financial instruments on the Unaudited Condensed Consolidated Balance Sheets. If the derivative financial instruments had been netted on the Unaudited Condensed Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $58 million. At November 30, 2014, the Company had received from various counterparties $170 million of cash collateral; this amount has been recorded in Cash and equivalents and Accrued liabilities, the latter of which would also net against the Company's derivative asset balance. No amount of collateral was posted on the Company’s derivative liability balance. | |||
[2] | The Company’s derivative financial instruments are subject to master netting arrangements that allow for the offset of assets and liabilities in the event of default or early termination of the contract. The Company elects to record the gross assets and liabilities of its derivative financial instruments on the Consolidated Balance Sheets. If the derivative financial instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $63 million. No amounts of collateral were received or posted on the Company’s derivative assets and liabilities as of May 31, 2014. |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Nov. 30, 2013 | 31-May-14 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||||
Available-for-sale securities with maturity dates within one year from purchase date | $1,857 | $1,857 | $2,287 | ||
Available-for-sale securities with maturity dates over one year and less than five years from purchase date | 583 | 583 | 635 | ||
Interest income related to cash and equivalents and short-term investments | 2 | 1 | 3 | 2 | |
Fair value of long term debt | $1,179 | $1,179 | $1,154 |
Income_Taxes_Income_before_Inc
Income Taxes - Income before Income Taxes (Detail) (USD $) | 6 Months Ended | ||
In Millions, unless otherwise specified | Nov. 30, 2014 | Nov. 30, 2013 | 31-May-14 |
Income Tax Disclosure [Abstract] | |||
Effective tax rate on continuing operations (percent) | 23.30% | 25.10% | |
Total gross unrecognized tax benefits, excluding related interest and penalties | $444 | $506 | |
Total gross unrecognized tax benefits, excluding related interest and penalties, amount which would affect the Company's effective tax rate if recognized in future periods | 240 | ||
Increase in liability for payment of interest and penalties | 7 | ||
Accrued interest and penalties related to uncertain tax positions (excluding federal benefit) | 160 | 167 | |
Estimated decrease in total gross unrecognized tax benefits as a result of resolutions of global tax examinations and expiration of applicable statutes of limitations | $39 |
Stock_Based_Compensation_Addit
Stock Based Compensation - Additional Information (Detail) (Class B Common Stock, USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Nov. 30, 2013 |
Employee Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee stock purchase plans, payroll deductions (percent) | 10.00% | 10.00% | ||
Employee stock purchase plan offering period (in months) | 6 months | |||
Shares purchased, price as percentage of lower of the fair market value (percent) | 85.00% | 85.00% | ||
Stock Incentive Plan 1990 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for grant (in shares) | 326,000,000 | 326,000,000 | ||
Stock options vesting period (in years) | 4 years | |||
Stock options expiration from the date of grant (in years) | 10 years | |||
Unrecognized compensation costs from stock options, net of estimated forfeitures | $251 | $251 | ||
Unrecognized compensation costs from stock options, net of estimated forfeitures, to be recognized as operating overhead expense over a weighted average period (in years) | 2 years 4 months 24 days | |||
Weighted average fair value per share of the options granted (in dollars per share) | $16.94 | $14.88 | ||
Minimum term of market traded options for estimates of expected volatility (in years) | 1 year | |||
Stock Incentive Plan 1990 | Employee Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Accelerated stock option expense | $5 | $4 | $9 | $8 |
StockBased_Compensation_Total_
Stock-Based Compensation - Total Stock-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Millions, unless otherwise specified | Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Nov. 30, 2013 | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||||
Stock-based compensation expense | $92 | $88 | ||||||
Class B Common Stock | Stock Incentive Plan 1990 | ||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||||
Stock-based compensation expense | 49 | 46 | 92 | 88 | ||||
Class B Common Stock | Stock Incentive Plan 1990 | Stock Options | ||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||||
Stock-based compensation expense | 35 | [1] | 32 | [1] | 65 | [1] | 61 | [1] |
Class B Common Stock | Stock Incentive Plan 1990 | ESPPs | ||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||||
Stock-based compensation expense | 6 | 6 | 12 | 11 | ||||
Class B Common Stock | Stock Incentive Plan 1990 | Restricted stock | ||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||||
Stock-based compensation expense | $8 | $8 | $15 | $16 | ||||
[1] | Expense for stock options includes the expense associated with stock appreciation rights. Accelerated stock option expense is recorded for employees eligible for accelerated stock option vesting upon retirement. Accelerated stock option expense for the three month periods ended November 30, 2014 and 2013 was $5 million and $4 million, respectively, and for the six month periods ended November 30, 2014 and 2013 was $9 million and $8 million, respectively. |
StockBased_Compensation_Weight
Stock-Based Compensation - Weighted Average Assumptions Used to Estimate Fair Values (Detail) (Stock Incentive Plan 1990, Class B Common Stock) | 6 Months Ended | |
Nov. 30, 2014 | Nov. 30, 2013 | |
Stock Incentive Plan 1990 | Class B Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 1.20% | 1.30% |
Expected volatility | 23.60% | 27.90% |
Weighted average expected life (in years) | 5 years 9 months 18 days | 5 years 3 months 18 days |
Risk-free interest rate | 1.70% | 1.30% |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Nov. 30, 2013 |
Earnings Per Share [Abstract] | ||||
Anti-dilutive options not included in the computation of diluted earnings per share | 9.1 | 7.9 | 0.1 | 0.1 |
Earnings_Per_Share_Reconciliat
Earnings Per Share - Reconciliation from Basic Earnings Per Share to Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Nov. 30, 2013 |
Determination of shares: | ||||
Weighted average common shares outstanding (in shares) | 863.1 | 888 | 864 | 888.7 |
Assumed conversion of dilutive stock options and awards (in shares) | 21.7 | 22.6 | 21.8 | 22 |
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (in shares) | 884.8 | 910.6 | 885.8 | 910.7 |
Basic earnings per common share for NIKE, Inc. (in dollars per share) | $0.76 | $0.60 | $1.87 | $1.48 |
Diluted earnings per common share for NIKE, Inc. (in dollars per share) | $0.74 | $0.59 | $1.83 | $1.44 |
Risk_Management_and_Derivative2
Risk Management and Derivatives - Additional Information (Detail) (USD $) | 6 Months Ended |
Nov. 30, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |
Total notional amount of outstanding derivatives | $14,800,000,000 |
Maximum term over which the Company is hedging exposures to the variability of cash flows for its forecasted and recorded transactions (in months) | 24 months |
Percentage of anticipated exposures hedged (percent) | 100.00% |
Deferred net gains (net of tax) on both outstanding and matured derivatives accumulated in other comprehensive income are expected to be reclassified to net income during the next twelve months as a result of underlying hedged transactions also being recorded in net income | 325,000,000 |
Aggregate fair value of derivative instruments in net liability position | 0 |
Embedded derivatives | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |
Total notional amount of outstanding derivatives | 167,000,000 |
Minimum | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |
Typical time period that anticipated exposures are hedged against (in months) | 12 months |
Minimum fair value of outstanding derivative above which the credit related contingent features require the derivative party to post collateral | $50,000,000 |
Maximum | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |
Typical time period that anticipated exposures are hedged against (in months) | 24 months |
Risk_Management_and_Derivative3
Risk Management and Derivatives - FV of Derivative Instruments Included within Consolidated Balance Sheet (Detail) (USD $) | Nov. 30, 2014 | 31-May-14 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $640 | $133 |
Derivative Liabilities | 58 | 85 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 556 | 108 |
Derivative Liabilities | 41 | 58 |
Designated as Hedging Instrument | Foreign exchange forwards and options | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 382 | 76 |
Designated as Hedging Instrument | Foreign exchange forwards and options | Deferred income taxes and other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 170 | 26 |
Designated as Hedging Instrument | Foreign exchange forwards and options | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 38 | 57 |
Designated as Hedging Instrument | Foreign exchange forwards and options | Deferred income taxes and other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 3 | 1 |
Designated as Hedging Instrument | Interest rate swap contracts | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 4 | 0 |
Designated as Hedging Instrument | Interest rate swap contracts | Deferred income taxes and other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0 | 6 |
Designated as Hedging Instrument | Interest rate swap contracts | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0 | 0 |
Designated as Hedging Instrument | Interest rate swap contracts | Deferred income taxes and other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0 | 0 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 84 | 25 |
Derivative Liabilities | 17 | 27 |
Derivatives not designated as hedging instruments | Foreign exchange forwards and options | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 83 | 25 |
Derivatives not designated as hedging instruments | Foreign exchange forwards and options | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 17 | 27 |
Derivatives not designated as hedging instruments | Embedded derivatives | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1 | 0 |
Derivatives not designated as hedging instruments | Embedded derivatives | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $0 | $0 |
Risk_Management_and_Derivative4
Risk Management and Derivatives - Amounts Affecting Consolidated Statements of Income (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Millions, unless otherwise specified | Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Nov. 30, 2013 | ||||
Foreign exchange forwards and options | Other (income) expense, net | Derivatives not designated as hedging instruments | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Gain (Loss) Recognized in Income on Derivatives | $185 | ($24) | $278 | ($39) | ||||
Embedded derivatives | Other (income) expense, net | Derivatives not designated as hedging instruments | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Gain (Loss) Recognized in Income on Derivatives | 2 | -1 | 1 | -1 | ||||
Derivatives designated as cash flow hedges | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives | 379 | [1] | -94 | [2] | 497 | [1] | -127 | [2] |
Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income | 15 | [1] | 20 | [2] | -5 | [1] | 55 | [2] |
Derivatives designated as cash flow hedges | Foreign exchange forwards and options | Revenue | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives | -4 | [1] | -16 | [2] | -42 | [1] | -19 | [2] |
Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income | -19 | [1] | 7 | [2] | -36 | [1] | 21 | [2] |
Derivatives designated as cash flow hedges | Foreign exchange forwards and options | Cost of sales | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives | 280 | [1] | -64 | [2] | 399 | [1] | -88 | [2] |
Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income | 21 | [1] | 7 | [2] | 13 | [1] | 23 | [2] |
Derivatives designated as cash flow hedges | Foreign exchange forwards and options | Selling and administrative expense | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives | 0 | [1] | 2 | [1] | 0 | [1] | 3 | [2] |
Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] |
Derivatives designated as cash flow hedges | Foreign exchange forwards and options | Other (income) expense, net | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives | 103 | [1] | -16 | [2] | 140 | [1] | -23 | [2] |
Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income | 13 | [1] | 6 | [2] | 18 | [1] | 11 | [2] |
Derivatives designated as fair value hedges | Interest rate swap contracts | Interest (income) expense, net | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Gain (Loss) Recognized in Income on Derivatives | $1 | [3] | $1 | [3] | $2 | [2] | $2 | [3] |
[1] | For the three and six months ended November 30, 2014, the amounts recorded in Other expense (income), net as a result of hedge ineffectiveness and the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial. | |||||||
[2] | For the three and six months ended November 30, 2013, the amounts recorded in Other expense (income), net as a result of hedge ineffectiveness and the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial. | |||||||
[3] | All interest rate swap agreements meet the shortcut method requirements under the accounting standards for derivatives and hedging. Accordingly, changes in the fair values of the interest rate swap agreements are considered to exactly offset changes in the fair value of the underlying long-term debt. Refer to “Fair Value Hedges†in this note for additional detail. |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income - Changes in AOCI (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Millions, unless otherwise specified | Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Nov. 30, 2013 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accumulated other comprehensive income balance at the beginning of the period | $224 | $177 | $85 | $274 | ||||
Other comprehensive gains (losses) before reclassifications, net of tax | 326 | [1] | -73 | [2] | 452 | [3] | -141 | [4] |
Reclassifications to net income of previously deferred (gains) losses, net of tax | -25 | [5] | -14 | [6] | -12 | [7] | -43 | [8] |
Other comprehensive income (loss) | 301 | -87 | 440 | -184 | ||||
Accumulated other comprehensive income balance at the end of the period | 525 | 90 | 525 | 90 | ||||
Other comprehensive income, before reclassification, tax benefit (expense) | -18 | 9 | -30 | 7 | ||||
Reclassification from accumulated other comprehensive income, tax (benefit) expense | 1 | -5 | 4 | -10 | ||||
Foreign Currency Translation Adjustment | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accumulated other comprehensive income balance at the beginning of the period | 11 | [9] | 10 | [9] | 9 | [9] | 41 | [9] |
Other comprehensive gains (losses) before reclassifications, net of tax | -34 | [1],[9] | 14 | [2],[9] | -32 | [3],[9] | -17 | [4],[9] |
Reclassifications to net income of previously deferred (gains) losses, net of tax | 0 | [5],[9] | 0 | [6],[9] | 0 | [7],[9] | 0 | [8],[9] |
Other comprehensive income (loss) | -34 | [9] | 14 | [9] | -32 | [9] | -17 | [9] |
Accumulated other comprehensive income balance at the end of the period | -23 | [9] | 24 | [9] | -23 | [9] | 24 | [9] |
Other comprehensive income, before reclassification, tax benefit (expense) | 11 | 0 | 0 | 0 | ||||
Reclassification from accumulated other comprehensive income, tax (benefit) expense | 0 | 0 | 0 | 0 | ||||
Cash Flow Hedges | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accumulated other comprehensive income balance at the beginning of the period | 167 | 128 | 32 | 193 | ||||
Other comprehensive gains (losses) before reclassifications, net of tax | 351 | [1] | -85 | [2] | 470 | [3] | -120 | [4] |
Reclassifications to net income of previously deferred (gains) losses, net of tax | -18 | [5] | -15 | [6] | -2 | [7] | -45 | [8] |
Other comprehensive income (loss) | 333 | -100 | 468 | -165 | ||||
Accumulated other comprehensive income balance at the end of the period | 500 | 28 | 500 | 28 | ||||
Other comprehensive income, before reclassification, tax benefit (expense) | -28 | 9 | -27 | 7 | ||||
Reclassification from accumulated other comprehensive income, tax (benefit) expense | 3 | -5 | 7 | -10 | ||||
Net Investment Hedges | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accumulated other comprehensive income balance at the beginning of the period | 95 | [9] | 95 | [9] | 95 | [9] | 95 | [9] |
Other comprehensive gains (losses) before reclassifications, net of tax | 0 | [1],[9] | 0 | [3],[9] | 0 | [3],[9] | 0 | [4],[9] |
Reclassifications to net income of previously deferred (gains) losses, net of tax | 0 | [5],[9] | 0 | [6],[9] | 0 | [7],[9] | 0 | [8],[9] |
Other comprehensive income (loss) | 0 | [9] | 0 | [9] | 0 | [9] | 0 | [9] |
Accumulated other comprehensive income balance at the end of the period | 95 | [9] | 95 | [9] | 95 | [9] | 95 | [9] |
Other comprehensive income, before reclassification, tax benefit (expense) | 0 | 0 | 0 | 0 | ||||
Reclassification from accumulated other comprehensive income, tax (benefit) expense | 0 | 0 | 0 | 0 | ||||
Other | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accumulated other comprehensive income balance at the beginning of the period | -49 | -56 | -51 | -55 | ||||
Other comprehensive gains (losses) before reclassifications, net of tax | 9 | [1] | -2 | [2] | 14 | [3] | -4 | [4] |
Reclassifications to net income of previously deferred (gains) losses, net of tax | -7 | [5] | 1 | [6] | -10 | [7] | 2 | [8] |
Other comprehensive income (loss) | 2 | -1 | 4 | -2 | ||||
Accumulated other comprehensive income balance at the end of the period | -47 | -57 | -47 | -57 | ||||
Other comprehensive income, before reclassification, tax benefit (expense) | -1 | 0 | -3 | 0 | ||||
Reclassification from accumulated other comprehensive income, tax (benefit) expense | ($2) | $0 | ($3) | $0 | ||||
[1] | Net of tax benefit (expense) of $11 million, $(28) million, $0 million, $(1) million and $(18) million, respectively. | |||||||
[2] | Net of tax benefit (expense) of $0 million, $9 million, $0 million, $0 million and $9 million, respectively. | |||||||
[3] | Net of tax benefit (expense) of $0 million, $(27) million, $0 million, $(3) million and $(30) million, respectively. | |||||||
[4] | Net of tax benefit (expense) of $0 million, $7 million, $0 million, $0 million and $7 million, respectively. | |||||||
[5] | Net of tax (benefit) expense of $0 million, $(3) million, $0 million, $2 million and $(1) million, respectively. | |||||||
[6] | Net of tax (benefit) expense of $0 million, $5 million, $0 million, $0 million and $5 million, respectively. | |||||||
[7] | Net of tax (benefit) expense of $0 million, $(7) million, $0 million, $3 million and $(4) million, respectively. | |||||||
[8] | Net of tax (benefit) expense of $0 million, $10 million, $0 million, $0 million and $10 million, respectively. | |||||||
[9] | The accumulated foreign currency translation adjustment and net investment hedge gains/losses related to an investment in a foreign subsidiary are reclassified to Net income upon sale or upon complete or substantially complete liquidation of the respective entity. |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income - Reclassification out of AOCI (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Nov. 30, 2013 |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenues | $7,380 | $6,431 | $15,362 | $13,402 |
Cost of sales | -4,053 | -3,605 | -8,314 | -7,444 |
Total selling and administrative expense | -2,438 | -2,091 | -4,918 | -4,149 |
Other expense (income), net | -2 | -13 | -5 | -41 |
Total before tax | 878 | 714 | 2,107 | 1,752 |
Tax benefit (expense) | -223 | -180 | -490 | -439 |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
NET INCOME | 25 | 14 | 12 | 43 |
Gain (losses) on cash flow hedges | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | 15 | 20 | -5 | 55 |
Tax benefit (expense) | 3 | -5 | 7 | -10 |
NET INCOME | 18 | 15 | 2 | 45 |
Gain (losses) on cash flow hedges | Foreign exchange forwards and options | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenues | -19 | 7 | -36 | 21 |
Cost of sales | 21 | 7 | 13 | 23 |
Total selling and administrative expense | 0 | 0 | 0 | 0 |
Other expense (income), net | 13 | 6 | 18 | 11 |
Other | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other expense (income), net | 9 | -1 | 13 | -2 |
Total before tax | 9 | -1 | 13 | -2 |
Tax benefit (expense) | -2 | 0 | -3 | 0 |
NET INCOME | $7 | ($1) | $10 | ($2) |
Operating_Segments_Information
Operating Segments - Information by Operating Segments (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Nov. 30, 2014 | Nov. 30, 2013 | Nov. 30, 2014 | Nov. 30, 2013 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net Revenue | $7,380 | $6,431 | $15,362 | $13,402 |
Earnings Before Interest and Taxes | 887 | 722 | 2,125 | 1,768 |
Interest expense (income), net | 9 | 8 | 18 | 16 |
Income before income taxes | 878 | 714 | 2,107 | 1,752 |
NIKE Brand | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net Revenue | 6,959 | 6,070 | 14,380 | 12,538 |
Earnings Before Interest and Taxes | 1,074 | 855 | 2,368 | 1,952 |
NIKE Brand | North America | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net Revenue | 3,241 | 2,801 | 6,754 | 5,936 |
Earnings Before Interest and Taxes | 785 | 647 | 1,755 | 1,460 |
NIKE Brand | Western Europe | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net Revenue | 1,312 | 1,074 | 3,026 | 2,375 |
Earnings Before Interest and Taxes | 261 | 123 | 665 | 388 |
NIKE Brand | Central & Eastern Europe | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net Revenue | 346 | 295 | 738 | 661 |
Earnings Before Interest and Taxes | 57 | 48 | 125 | 129 |
NIKE Brand | Greater China | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net Revenue | 758 | 629 | 1,437 | 1,203 |
Earnings Before Interest and Taxes | 258 | 197 | 476 | 367 |
NIKE Brand | Japan | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net Revenue | 199 | 210 | 359 | 368 |
Earnings Before Interest and Taxes | 29 | 47 | 40 | 71 |
NIKE Brand | Emerging Markets | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net Revenue | 1,075 | 1,030 | 2,009 | 1,932 |
Earnings Before Interest and Taxes | 236 | 243 | 392 | 453 |
NIKE Brand | Global Brand Division | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net Revenue | 28 | 31 | 57 | 63 |
Earnings Before Interest and Taxes | -552 | -450 | -1,085 | -916 |
Converse | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net Revenue | 434 | 360 | 1,009 | 854 |
Earnings Before Interest and Taxes | 88 | 100 | 274 | 269 |
Corporate | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net Revenue | -13 | 1 | -27 | 10 |
Earnings Before Interest and Taxes | ($275) | ($233) | ($517) | ($453) |
Operating_Segments_Accounts_Re
Operating Segments - Accounts Receivable Net Inventories and Property Plant and Equipment Net by Operating Segments (Detail) (USD $) | Nov. 30, 2014 | 31-May-14 |
In Millions, unless otherwise specified | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Accounts Receivable, net | $3,457 | $3,434 |
Inventories | 4,150 | 3,947 |
Property, Plant and Equipment, net | 2,927 | 2,834 |
NIKE Brand | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Accounts Receivable, net | 3,211 | 3,246 |
Inventories | 3,864 | 3,706 |
Property, Plant and Equipment, net | 2,179 | 2,122 |
NIKE Brand | North America | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Accounts Receivable, net | 1,571 | 1,505 |
Inventories | 1,902 | 1,758 |
Property, Plant and Equipment, net | 594 | 545 |
NIKE Brand | Western Europe | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Accounts Receivable, net | 388 | 341 |
Inventories | 781 | 711 |
Property, Plant and Equipment, net | 429 | 384 |
NIKE Brand | Central & Eastern Europe | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Accounts Receivable, net | 236 | 280 |
Inventories | 152 | 271 |
Property, Plant and Equipment, net | 48 | 51 |
NIKE Brand | Greater China | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Accounts Receivable, net | 147 | 68 |
Inventories | 269 | 221 |
Property, Plant and Equipment, net | 248 | 232 |
NIKE Brand | Japan | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Accounts Receivable, net | 115 | 162 |
Inventories | 103 | 94 |
Property, Plant and Equipment, net | 218 | 258 |
NIKE Brand | Emerging Markets | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Accounts Receivable, net | 661 | 819 |
Inventories | 632 | 633 |
Property, Plant and Equipment, net | 105 | 115 |
NIKE Brand | Global Brand Division | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Accounts Receivable, net | 93 | 71 |
Inventories | 25 | 18 |
Property, Plant and Equipment, net | 537 | 537 |
Converse | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Accounts Receivable, net | 235 | 171 |
Inventories | 259 | 261 |
Property, Plant and Equipment, net | 92 | 70 |
Corporate | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Accounts Receivable, net | 11 | 17 |
Inventories | 27 | -20 |
Property, Plant and Equipment, net | $656 | $642 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | Nov. 30, 2014 |
In Millions, unless otherwise specified | |
Loss Contingencies [Line Items] | |
Letters of credit outstanding | $129 |
Cole Haan | |
Loss Contingencies [Line Items] | |
Maximum exposure under guarantees | $28 |