Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
May 31, 2023 | Jul. 12, 2023 | Nov. 30, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | May 31, 2023 | ||
Current Fiscal Year End Date | --05-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-10635 | ||
Entity Registrant Name | NIKE, Inc. | ||
Entity Incorporation, State or Country Code | OR | ||
Entity Tax Identification Number | 93-0584541 | ||
Entity Address, Address Line One | One Bowerman Drive | ||
Entity Address, City or Town | Beaverton | ||
Entity Address, State or Province | OR | ||
Entity Address, Postal Zip Code | 97005-6453 | ||
City Area Code | 503 | ||
Local Phone Number | 671-6453 | ||
Title of 12(b) Security | Class B Common Stock | ||
Trading Symbol | NKE | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 144,299,267,044 | ||
Documents Incorporated by Reference | Parts of Registrant's Proxy Statement for the Annual Meeting of Shareholders to be held on September 12, 2023, are incorporated by reference into Part III of this report. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000320187 | ||
Class A Convertible Common Stock | |||
Document Information [Line Items] | |||
Entity Public Float | 7,831,564,572 | ||
Entity Common Stock Shares Outstanding (In Shares) | 304,897,252 | ||
Class B Common Stock | |||
Document Information [Line Items] | |||
Entity Public Float | $ 136,467,702,472 | ||
Entity Common Stock Shares Outstanding (In Shares) | 1,225,074,356 |
Audit Information
Audit Information | 12 Months Ended |
May 31, 2023 | |
Auditor Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Portland, Oregon |
Auditor Firm ID | 238 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Income Statement [Abstract] | |||
Revenues | $ 51,217 | $ 46,710 | $ 44,538 |
Cost of sales | 28,925 | 25,231 | 24,576 |
Gross profit | 22,292 | 21,479 | 19,962 |
Demand creation expense | 4,060 | 3,850 | 3,114 |
Operating overhead expense | 12,317 | 10,954 | 9,911 |
Total selling and administrative expense | 16,377 | 14,804 | 13,025 |
Interest expense (income), net | (6) | 205 | 262 |
Other (income) expense, net | (280) | (181) | 14 |
Income before income taxes | 6,201 | 6,651 | 6,661 |
Income tax expense | 1,131 | 605 | 934 |
NET INCOME | $ 5,070 | $ 6,046 | $ 5,727 |
Earnings per common share: | |||
Basic (in dollars per share) | $ 3.27 | $ 3.83 | $ 3.64 |
Diluted (in dollars per share) | $ 3.23 | $ 3.75 | $ 3.56 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 1,551.6 | 1,578.8 | 1,573 |
Diluted (in shares) | 1,569.8 | 1,610.8 | 1,609.4 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 5,070 | $ 6,046 | $ 5,727 |
Other comprehensive income (loss), net of tax: | |||
Change in net foreign currency translation adjustment | 267 | (522) | 496 |
Change in net gains (losses) on cash flow hedges | (348) | 1,214 | (825) |
Change in net gains (losses) on other | (6) | 6 | 5 |
Total other comprehensive income (loss), net of tax | (87) | 698 | (324) |
TOTAL COMPREHENSIVE INCOME | $ 4,983 | $ 6,744 | $ 5,403 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | May 31, 2023 | May 31, 2022 |
Current assets: | ||
Cash and equivalents | $ 7,441 | $ 8,574 |
Short-term investments | 3,234 | 4,423 |
Accounts receivable, net | 4,131 | 4,667 |
Inventories | 8,454 | 8,420 |
Prepaid expenses and other current assets | 1,942 | 2,129 |
Total current assets | 25,202 | 28,213 |
Property, plant and equipment, net | 5,081 | 4,791 |
Operating lease right-of-use assets, net | 2,923 | 2,926 |
Identifiable intangible assets, net | 274 | 286 |
Goodwill | 281 | 284 |
Deferred income taxes and other assets | 3,770 | 3,821 |
TOTAL ASSETS | 37,531 | 40,321 |
Current liabilities: | ||
Current portion of long-term debt | 0 | 500 |
Notes payable | 6 | 10 |
Accounts payable | 2,862 | 3,358 |
Current portion of operating lease liabilities | 425 | 420 |
Accrued liabilities | 5,723 | 6,220 |
Income taxes payable | 240 | 222 |
Total current liabilities | 9,256 | 10,730 |
Long-term debt | 8,927 | 8,920 |
Operating lease liabilities | 2,786 | 2,777 |
Deferred income taxes and other liabilities | 2,558 | 2,613 |
Commitments and contingencies (Note 16) | ||
Redeemable preferred stock | 0 | 0 |
Shareholders' equity: | ||
Capital in excess of stated value | 12,412 | 11,484 |
Accumulated other comprehensive income (loss) | 231 | 318 |
Retained earnings (deficit) | 1,358 | 3,476 |
Total shareholders' equity | 14,004 | 15,281 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 37,531 | 40,321 |
Class A Convertible Common Stock | ||
Shareholders' equity: | ||
Common stock at stated value | 0 | 0 |
Class B Common Stock | ||
Shareholders' equity: | ||
Common stock at stated value | $ 3 | $ 3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares shares in Millions | May 31, 2023 | May 31, 2022 |
Class A Convertible Common Stock | ||
Shareholders' equity: | ||
Common Stock, shares outstanding (in shares) | 305 | 305 |
Class B Common Stock | ||
Shareholders' equity: | ||
Common Stock, shares outstanding (in shares) | 1,227 | 1,266 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Cash provided (used) by operations: | |||
Net income | $ 5,070 | $ 6,046 | $ 5,727 |
Adjustments to reconcile net income to net cash provided (used) by operations: | |||
Depreciation | 703 | 717 | 744 |
Deferred income taxes | (117) | (650) | (385) |
Stock-based compensation | 755 | 638 | 611 |
Amortization, impairment and other | 156 | 123 | 53 |
Net foreign currency adjustments | (213) | (26) | (138) |
Changes in certain working capital components and other assets and liabilities: | |||
(Increase) decrease in accounts receivable | 489 | (504) | (1,606) |
(Increase) decrease in inventories | (133) | (1,676) | 507 |
(Increase) decrease in prepaid expenses, operating lease right-of-use assets and other current and non-current assets | (644) | (845) | (182) |
Increase (decrease) in accounts payable, accrued liabilities, operating lease liabilities and other current and non-current liabilities | (225) | 1,365 | 1,326 |
Cash provided (used) by operations | 5,841 | 5,188 | 6,657 |
Cash provided (used) by investing activities: | |||
Purchases of short-term investments | (6,059) | (12,913) | (9,961) |
Maturities of short-term investments | 3,356 | 8,199 | 4,236 |
Sales of short-term investments | 4,184 | 3,967 | 2,449 |
Additions to property, plant and equipment | (969) | (758) | (695) |
Other investing activities | 52 | (19) | 171 |
Cash provided (used) by investing activities | 564 | (1,524) | (3,800) |
Cash provided (used) by financing activities: | |||
Increase (decrease) in notes payable, net | (4) | 15 | (52) |
Repayment of borrowings | (500) | 0 | (197) |
Proceeds from exercise of stock options and other stock issuances | 651 | 1,151 | 1,172 |
Repurchase of common stock | (5,480) | (4,014) | (608) |
Dividends — common and preferred | (2,012) | (1,837) | (1,638) |
Other financing activities | (102) | (151) | (136) |
Cash provided (used) by financing activities | (7,447) | (4,836) | (1,459) |
Effect of exchange rate changes on cash and equivalents | (91) | (143) | 143 |
Net increase (decrease) in cash and equivalents | (1,133) | (1,315) | 1,541 |
Cash and equivalents, beginning of year | 8,574 | 9,889 | 8,348 |
CASH AND EQUIVALENTS, END OF YEAR | 7,441 | 8,574 | 9,889 |
Cash paid during the year for: | |||
Interest, net of capitalized interest | 347 | 290 | 293 |
Income taxes | 1,517 | 1,231 | 1,177 |
Non-cash additions to property, plant and equipment | 211 | 160 | 179 |
Dividends declared and not paid | $ 524 | $ 480 | $ 438 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | CAPITAL IN EXCESS OF STATED VALUE | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | RETAINED EARNINGS (DEFICIT) | Class A Common Stock | Class A Common Stock COMMON STOCK | Class B Common Stock | Class B Common Stock COMMON STOCK |
Beginning balance (in shares) at May. 31, 2020 | 315 | 1,243 | ||||||
Beginning balance at May. 31, 2020 | $ 8,055 | $ 8,299 | $ (56) | $ (191) | $ 0 | $ 3 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock options exercised (in shares) | 21 | |||||||
Stock options exercised | 954 | 954 | ||||||
Conversion to Class B Common Stock (in shares) | (10) | 10 | ||||||
Repurchase of Class B Common Stock (in shares) | (5) | |||||||
Repurchase of Class B Common Stock | (650) | (28) | (622) | |||||
Dividends on common stock and preferred stock | (1,692) | (1,692) | ||||||
Issuance of shares to employees, net of shares withheld for employee taxes (in shares) | 4 | |||||||
Issuance of shares to employees, net of shares withheld for employee taxes | 86 | 129 | (43) | |||||
Stock-based compensation | 611 | 611 | ||||||
Net income | 5,727 | 5,727 | ||||||
Other comprehensive income (loss) | (324) | (324) | ||||||
Ending balance (in shares) at May. 31, 2021 | 305 | 1,273 | ||||||
Ending balance at May. 31, 2021 | 12,767 | 9,965 | (380) | 3,179 | $ 0 | $ 3 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock options exercised (in shares) | 17 | |||||||
Stock options exercised | 924 | 924 | ||||||
Repurchase of Class B Common Stock (in shares) | (27) | |||||||
Repurchase of Class B Common Stock | (3,994) | (186) | (3,808) | |||||
Dividends on common stock and preferred stock | (1,886) | (1,886) | ||||||
Issuance of shares to employees, net of shares withheld for employee taxes (in shares) | 3 | |||||||
Issuance of shares to employees, net of shares withheld for employee taxes | 88 | 143 | (55) | |||||
Stock-based compensation | 638 | 638 | ||||||
Net income | 6,046 | 6,046 | ||||||
Other comprehensive income (loss) | 698 | 698 | ||||||
Ending balance (in shares) at May. 31, 2022 | 305 | 305 | 1,266 | 1,266 | ||||
Ending balance at May. 31, 2022 | 15,281 | 11,484 | 318 | 3,476 | $ 0 | $ 3 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock options exercised (in shares) | 8 | |||||||
Stock options exercised | 421 | 421 | ||||||
Repurchase of Class B Common Stock (in shares) | (51) | |||||||
Repurchase of Class B Common Stock | (5,509) | (378) | (5,131) | |||||
Dividends on common stock and preferred stock | (2,059) | (2,059) | ||||||
Issuance of shares to employees, net of shares withheld for employee taxes (in shares) | 4 | |||||||
Issuance of shares to employees, net of shares withheld for employee taxes | 132 | 130 | 2 | |||||
Stock-based compensation | 755 | 755 | ||||||
Net income | 5,070 | 5,070 | ||||||
Other comprehensive income (loss) | (87) | (87) | ||||||
Ending balance (in shares) at May. 31, 2023 | 305 | 305 | 1,227 | 1,227 | ||||
Ending balance at May. 31, 2023 | $ 14,004 | $ 12,412 | $ 231 | $ 1,358 | $ 0 | $ 3 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per common share (in dollars per share) | $ 1.325 | $ 1.190 | $ 1.070 |
Dividends declared per preferred share (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.10 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
May 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES DESCRIPTION OF BUSINESS NIKE, Inc. is a worldwide leader in the design, development and worldwide marketing and selling of athletic footwear, apparel, equipment, accessories and services. NIKE, Inc. portfolio brands include the NIKE Brand, Jordan Brand and Converse. The NIKE Brand is focused on performance athletic footwear, apparel, equipment, accessories and services across Men's, Women's and Kids', amplified with sport-inspired lifestyle products carrying the Swoosh trademark, as well as other NIKE Brand trademarks. The Jordan Brand is focused on athletic and casual footwear, apparel and accessories using the Jumpman trademark. Sales and operating results of Jordan Brand products are reported within the respective NIKE Brand geographic operating segments. Converse designs, distributes, licenses and sells casual sneakers, apparel and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron and Jack Purcell trademarks. In some markets outside the U.S., these trademarks are licensed to third parties who design, distribute, market and sell similar products. Operating results of the Converse brand are reported on a stand-alone basis. BASIS OF CONSOLIDATION The Consolidated Financial Statements include the accounts of NIKE, Inc. and its subsidiaries (the "Company" or "NIKE"). All significant intercompany transactions and balances have been eliminated. REVENUE RECOGNITION Revenue transactions associated with the sale of NIKE Brand footwear, apparel and equipment, as well as Converse products, comprise a single performance obligation, which consists of the sale of products to customers either through wholesale or direct to consumer channels. The Company satisfies the performance obligation and records revenues when transfer of control to the customer has occurred, based on the terms of sale. A customer is considered to have control once they are able to direct the use and receive substantially all of the benefits of the product. Control is transferred to wholesale customers upon shipment or upon receipt depending on the country of the sale and the agreement with the customer. Control transfers to retail store customers at the time of sale and to substantially all digital commerce customers upon shipment. The transaction price is determined based upon the invoiced sales price, less anticipated sales returns, discounts and miscellaneous claims from customers. Payment terms for wholesale transactions depend on the country of sale or agreement with the customer and payment is generally required within 90 days or less of shipment to or receipt by the wholesale customer. Payment is due at the time of sale for retail store and digital commerce transactions. Consideration for trademark licensing contracts is earned through sales-based or usage-based royalty arrangements, and the associated revenues are recognized over the license period. Taxes assessed by governmental authorities that are both imposed on and concurrent with a specific revenue-producing transaction, and are collected by the Company from a customer, are excluded from Revenues and Cost of sales in the Consolidated Statements of Income. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as fulfillment costs and are included in Cost of sales when the related revenues are recognized. SALES-RELATED RESERVES Consideration promised in the Company's contracts with customers is variable due to anticipated reductions, such as sales returns, discounts and miscellaneous claims from customers. The Company estimates the most likely amount it will be entitled to receive and records an anticipated reduction against Revenues, with an offsetting increase to Accrued liabilities at the time revenues are recognized. The estimated cost of inventory for product returns is recorded in Prepaid expenses and other current assets on the Consolidated Balance Sheets. The provision for anticipated sales returns consists of both contractual return rights and discretionary authorized returns. Provisions for post-invoice sales discounts consist of both contractual programs and discretionary discounts that are expected to be granted at a later date. Estimates of discretionary authorized returns, discounts and claims are based on (1) historical rates, (2) specific identification of outstanding returns not yet received from customers and outstanding discounts and claims and (3) estimated returns, discounts and claims expected but not yet finalized with customers. Actual returns, discounts and claims in any future period are inherently uncertain and thus may differ from estimates recorded. If actual or expected future returns, discounts or claims are significantly greater or lower than the reserves established, a reduction or increase to net Revenues is recorded in the period in which such determination is made. COST OF SALES Cost of sales consists primarily of inventory costs, as well as warehousing costs (including the cost of warehouse labor), third-party royalties, certain foreign currency hedge gains and losses and product design costs. Shipping and handling costs are expensed as incurred and included in Cost of sales. DEMAND CREATION EXPENSE Demand creation expense consists of advertising and promotion costs, including costs of endorsement contracts, complimentary products, television, digital and print advertising as well as media costs, brand events and retail brand presentation. Advertising production costs are expensed the first time an advertisement is run. Advertising media costs are expensed when the advertisement appears. Costs related to brand events are expensed when the event occurs. Costs related to retail brand presentation are expensed when the presentation is complete and delivered. A significant amount of the Company's promotional expenses result from payments under endorsement contracts. In general, endorsement payments are expensed on a straight-line basis over the term of the contract. However, certain contracts contain elements that may be accounted for differently based upon the facts and circumstances of each individual contract. Prepayments made under contracts are included in Prepaid expenses and other current assets or Deferred income taxes and other assets depending on the period to which the prepayment applies. Certain contracts provide for contingent payments to endorsers based upon specific achievements in their sport (e.g., winning a championship). The Company records Demand creation expense for these amounts when the endorser achieves the specific goal. Certain contracts provide for variable payments based upon endorsers maintaining a level of performance in their sport over an extended period of time (e.g., maintaining a specified ranking in a sport for a year). When the Company determines payments are probable, the amounts are reported in Demand creation expense ratably over the contract period based on the Company's best estimate of the endorser's performance. In these instances, to the extent actual payments to the endorser differ from the Company's estimate due to changes in the endorser's performance, adjustments to Demand creation expense may be recorded in a future period. Certain contracts provide for royalty payments to endorsers based upon a predetermined percent of sales of particular products, which the Company records in Cost of sales as the related sales occur. For contracts containing minimum guaranteed royalty payments, the Company records the amount of any guaranteed payment in excess of that earned through sales of product within Demand creation expense. Through cooperative advertising programs, the Company reimburses its wholesale customers for certain costs of advertising the Company's products. To the extent the Company receives a distinct good or service in exchange for consideration paid to the customer that does not exceed the fair value of that good or service, the amounts reimbursed are recorded in Demand creation expense. Total Demand creation expense was $4,060 million, $3,850 million and $3,114 million for the years ended May 31, 2023, 2022 and 2021, respectively. Prepaid advertising and promotion expenses totaled $755 million and $773 million at May 31, 2023 and 2022, respectively, of which $372 million and $329 million, respectively, were recorded in Prepaid expenses and other current assets, and $383 million and $444 million, respectively, were recorded in Deferred income taxes and other assets, depending on the period to which the prepayment applied. OPERATING OVERHEAD EXPENSE Operating overhead expense consists primarily of wage and benefit-related expenses, research and development costs, bad debt expense as well as other administrative expenses such as rent, depreciation and amortization, professional services, certain technology investments, meetings and travel. CASH AND EQUIVALENTS Cash and equivalents represent cash and short-term, highly liquid investments, that are both readily convertible to known amounts of cash and so near their maturity they present insignificant risk of changes in value because of changes in interest rates, with maturities three months or less at the date of purchase. SHORT-TERM INVESTMENTS Short-term investments consist of highly liquid investments with maturities over three months at the date of purchase. At May 31, 2023 and 2022, Short-term investments consisted of available-for-sale debt securities, which are recorded at fair value with unrealized gains and losses reported, net of tax, in Accumulated other comprehensive income (loss), unless unrealized losses are determined to be unrecoverable. Realized gains and losses on the sale of securities are determined by specific identification. The Company considers all available-for-sale debt securities, including those with maturity dates beyond 12 months, as available to support current operational liquidity needs and, therefore, classifies all securities with maturity dates beyond three months at the date of purchase as current assets within Short-term investments on the Consolidated Balance Sheets. Refer to Note 4 — Fair Value Measurements for more information on the Company's Short-term investments. ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS RECEIVABLE Accounts receivable, net consist primarily of amounts due from customers. The Company makes ongoing estimates relating to the collectability of its accounts receivable and maintains an allowance for expected losses resulting from the inability of its customers to make required payments. In addition to judgments about the creditworthiness of significant customers based on ongoing credit evaluations, the Company considers historical levels of credit losses, as well as macroeconomic and industry trends to determine the amount of the allowance. The allowance for uncollectible accounts receivable was $35 million and $34 million as of May 31, 2023 and 2022, respectively. INVENTORY VALUATION Inventories, substantially all of which are finished goods, are stated at lower of cost and net realizable value and valued on either an average or a specific identification cost basis. In some instances, the Company ships products directly from its suppliers to the customer, with the related inventory and cost of sales recognized on a specific identification basis. Inventory costs primarily consist of product cost from the Company's suppliers, as well as inbound freight, import duties, taxes, insurance, logistics and other handling fees. PROPERTY, PLANT AND EQUIPMENT AND DEPRECIATION Property, plant and equipment are recorded at cost. Depreciation is determined on a straight-line basis for land improvements, buildings and leasehold improvements over 2 to 40 years and for machinery and equipment over 2 to 15 years. Depreciation and amortization of assets used in manufacturing, warehousing and product distribution are recorded in Cost of sales. Depreciation and amortization of all other assets are recorded in Operating overhead expense. SOFTWARE DEVELOPMENT COSTS Expenditures for major software purchases and software developed for internal use are capitalized and amortized over 2 to 12 years on a straight-line basis. The Company's policy provides for the capitalization of external direct costs associated with developing or obtaining internal use computer software. The Company also capitalizes certain payroll and payroll-related costs for employees who are directly associated with internal use computer software projects. The amount of capitalizable payroll costs with respect to these employees is limited to the time directly spent on such projects. Costs associated with preliminary project stage activities, training, maintenance and all other post-implementation stage activities are expensed as incurred. Development costs of computer software to be sold, leased or otherwise marketed as an integral part of a product are subject to capitalization beginning when a product's technological feasibility has been established and ending when a product is available for general release to customers. In most instances, the Company's products are released soon after technological feasibility has been established; therefore, software development costs incurred subsequent to achievement of technological feasibility are usually not significant, and generally, most software development costs have been expensed as incurred. IMPAIRMENT OF LONG-LIVED ASSETS The Company reviews the carrying value of long-lived assets or asset groups to be used in operations whenever events or changes in circumstances indicate the carrying amount of the assets might not be recoverable. Factors that would necessitate an impairment assessment include a significant adverse change in the extent or manner in which an asset is used, a significant adverse change in legal factors or the business climate that could affect the value of the asset or a significant decline in the observable market value of an asset, among others. If such facts indicate a potential impairment, the Company would assess the recoverability of an asset group by determining if the carrying value of the asset group exceeds the sum of the projected undiscounted cash flows expected to result from the use and eventual disposition of the assets over the remaining economic life of the primary asset in the asset group. If the recoverability test indicates that the carrying value of the asset group is not recoverable, the Company will estimate the fair value of the asset group using appropriate valuation methodologies, which would typically include an estimate of discounted cash flows. Any impairment would be measured as the difference between the asset group's carrying amount and its estimated fair value. GOODWILL AND INDEFINITE-LIVED INTANGIBLE ASSETS The Company performs annual impairment tests on goodwill and intangible assets with indefinite lives in the fourth quarter of each fiscal year or when events occur or circumstances change that would, more likely than not, reduce the fair value of a reporting unit or an intangible asset with an indefinite life below its carrying value. For purposes of testing goodwill for impairment, the Company allocates goodwill across its reporting units, which are considered the Company's operating segments. For both goodwill and indefinite-lived intangible assets, which primarily consist of acquired trade names and trademarks, the Company may first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit or an intangible asset with an indefinite life is less than its carrying amount. If, after assessing the totality of events and circumstances, the Company determines it is more likely than not that the fair value of a reporting unit or indefinite-lived intangible asset is greater than its carrying amount, an impairment test is unnecessary. If an impairment test is necessary, the Company will estimate the fair value of the related reporting unit or indefinite-lived intangible asset. If the carrying value of a reporting unit or indefinite-lived intangible asset exceeds its fair value, the goodwill of that reporting unit or indefinite-lived intangible asset is determined to be impaired and the Company will record an impairment charge equal to the excess of the carrying value over the related fair value. There were no accumulated impairment losses as of May 31, 2023 and 2022. Additionally, the impact to Goodwill as a result of acquisitions and divestitures during fiscal 2023 and 2022, was not material. OPERATING LEASES The Company primarily leases retail store space, certain distribution and warehouse facilities, office space, equipment and other non-real estate assets. The Company determines if an arrangement is a lease at inception and begins recording lease activity at the commencement date, which is generally the date in which the Company takes possession of or controls the physical use of the asset. Lease components are not separated from non-lease components for real estate leases within the Company's lease portfolio. Right-of-use ("ROU") assets and lease liabilities are recognized based on the present value of lease payments over the lease term with lease expense recognized on a straight-line basis. The Company's incremental borrowing rate is used to determine the present value of future lease payments unless the implicit rate is readily determinable. Lease agreements may contain rent escalation clauses, renewal or termination options, rent holidays or certain landlord incentives, including tenant improvement allowances. ROU assets include amounts for scheduled rent increases and are reduced by the amount of lease incentives. The lease term includes the non-cancelable period of the lease and options to extend or terminate the lease when it is reasonably certain the Company will exercise those options. The Company does not record leases with an initial term of 12 months or less on the Consolidated Balance Sheets and recognizes related lease payments in the Consolidated Statements of Income on a straight-line basis over the lease term. Certain lease agreements include variable lease payments, which are based on a percent of retail sales over specified levels or adjust periodically for inflation as a result of changes in a published index, primarily the Consumer Price Index, and are expensed as incurred. FAIR VALUE MEASUREMENTS The Company measures certain financial assets and liabilities at fair value on a recurring basis, including derivatives, equity securities and available-for-sale debt securities. 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 a three-level hierarchy that prioritizes fair value measurements based on the types of inputs used, as follows: • 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 or similar assets or liabilities in markets that are not active. • Level 3: Unobservable inputs with 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 a majority of 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 fair value of derivative contracts is determined using observable market inputs such as the daily market foreign currency rates, forward pricing curves, currency volatilities, currency correlations and interest rates and considers nonperformance risk of the Company and its counterparties. The Company's fair value measurement process includes comparing fair values to another independent pricing vendor to ensure appropriate fair values are recorded. Refer to Note 4 — Fair Value Measurements for additional information. FOREIGN CURRENCY TRANSLATION AND FOREIGN CURRENCY TRANSACTIONS Adjustments resulting from translating foreign functional currency financial statements into U.S. Dollars are included in the foreign currency translation adjustment, a component of Accumulated other comprehensive income (loss). The Company's global subsidiaries have various monetary assets and liabilities, primarily receivables and payables, which are denominated in currencies other than their functional currency. These balance sheet items are subject to remeasurement, the impact of which is recorded in Other (income) expense, net, within the Consolidated Statements of Income. ACCOUNTING FOR DERIVATIVES AND HEDGING ACTIVITIES The Company uses derivative financial instruments to reduce its exposure to changes in foreign currency exchange rates and interest rates. All derivatives are recorded at fair value on the Consolidated Balance Sheets and changes in the fair value of derivative financial instruments are either recognized in Accumulated other comprehensive income (loss), Long-term debt or Net income depending on the nature of the underlying exposure, whether the derivative is formally designated as a hedge and, if designated, the extent to which the hedge is effective. The Company classifies the cash flows at settlement from derivatives in the same category as the cash flows from the related hedged items. For undesignated hedges and designated cash flow hedges, this is primarily within the Cash provided by operations component of the Consolidated Statements of Cash Flows. For designated net investment hedges, this is within the Cash provided by investing activities component of the Consolidated Statements of Cash Flows. For the Company's fair value hedges, which are interest rate swaps used to mitigate the change in fair value of its fixed-rate debt attributable to changes in interest rates, the related cash flows from periodic interest payments are reflected within the Cash provided by operations component of the Consolidated Statements of Cash Flows. Refer to Note 12 — Risk Management and Derivatives for additional information on the Company's risk management program and derivatives. STOCK-BASED COMPENSATION The Company accounts for stock-based compensation by estimating the fair value, net of estimated forfeitures, of equity awards and recognizing the related expense as Cost of sales or Operating overhead expense, as applicable, in the Consolidated Statements of Income on a straight-line basis over the vesting period. Substantially all awards vest ratably over four years of continued employment, with stock options expiring 10 years from the date of grant. Performance-based restricted stock units vest based on the Company's achievement of certain performance criteria throughout the three-year performance period and continued employment through the vesting date. The fair value of options, stock appreciation rights and employees' purchase rights under the employee stock purchase plans ("ESPPs") is determined using the Black-Scholes option pricing model. The fair value of restricted stock and time-vesting restricted stock units is established by the market price on the date of grant. The fair value of performance-based restricted stock units is estimated as of the grant date using a Monte Carlo simulation. Refer to Note 9 — Common Stock and Stock-Based Compensation for additional information on the Company's stock-based compensation programs. INCOME TAXES The Company accounts for income taxes using the asset and liability method. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. The Company records a valuation allowance to reduce deferred tax assets to the amount management believes is more likely than not to be realized. Realization of deferred tax assets is dependent on future taxable earnings and is therefore uncertain. At least quarterly, the Company assesses taxable income in prior carryback periods, the scheduled reversal of deferred tax liabilities, projected future taxable income and available tax planning strategies. The Company uses forecasts of taxable income and considers foreign tax credit utilization in making this assessment of realization, which are inherently uncertain and can result in significant variation between estimated and actual results. To the extent the Company believes that recovery is not likely, a valuation allowance is established against the net deferred tax asset, which increases the Company's income tax expense in the period when such determination is made. The Company recognizes a tax benefit from uncertain tax positions in the financial statements only when it is more likely than not the position will be sustained upon examination by relevant tax authorities. The Company recognizes interest and penalties related to income tax matters in Income tax expense. Refer to Note 7 — Income Taxes for further discussion. EARNINGS PER SHARE Basic earnings per common share is calculated by dividing Net income by the weighted average number of common shares outstanding during the year. Diluted earnings per common share is calculated by adjusting weighted average outstanding shares, assuming conversion of all potentially dilutive stock options and awards. Refer to Note 10 — Earnings Per Share for further discussion. MANAGEMENT ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates, including estimates relating to assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Additionally, the macroeconomic environment could remain volatile as the risk exists that worsening macroeconomic conditions could have a material, adverse impact on future revenue growth as well as overall profitability. RECENTLY ISSUED ACCOUNTING STANDARDS |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
May 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | NOTE 2 — PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, net included the following: MAY 31, (Dollars in millions) 2023 2022 Land and improvements $ 326 $ 330 Buildings 3,293 3,170 Machinery and equipment 3,083 2,870 Internal-use software 1,612 1,616 Leasehold improvements 1,876 1,712 Construction in process 525 399 Total property, plant and equipment, gross 10,715 10,097 Less accumulated depreciation 5,634 5,306 TOTAL PROPERTY, PLANT AND EQUIPMENT, NET $ 5,081 $ 4,791 Capitalized interest was not material for the fiscal years ended May 31, 2023, 2022 and 2021. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
May 31, 2023 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | NOTE 3 — ACCRUED LIABILITIES Accrued liabilities included the following: MAY 31, (Dollars in millions) 2023 2022 Compensation and benefits, excluding taxes $ 1,737 $ 1,297 Sales-related reserves 994 1,015 Endorsement compensation 552 496 Dividends payable 529 485 Allowance for expected loss on sale (1) — 397 Other 1,911 2,530 Total Accrued Liabilities $ 5,723 $ 6,220 (1) Refer to Note 18 — Acquisitions and Divestitures for additional information. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
May 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 4 — FAIR VALUE MEASUREMENTS The following tables present information about the Company's financial assets measured at fair value on a recurring basis as of May 31, 2023 and 2022, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement. Refer to Note 1 — Summary of Significant Accounting Policies for additional detail regarding the Company's fair value measurement methodology. MAY 31, 2023 (Dollars in millions) ASSETS AT FAIR VALUE CASH AND EQUIVALENTS SHORT-TERM INVESTMENTS Cash $ 1,767 $ 1,767 $ — Level 1: U.S. Treasury securities 2,655 — 2,655 Level 2: Commercial paper and bonds 543 15 528 Money market funds 5,157 5,157 — Time deposits 507 502 5 U.S. Agency securities 46 — 46 Total Level 2 6,253 5,674 579 TOTAL $ 10,675 $ 7,441 $ 3,234 MAY 31, 2022 (Dollars in millions) ASSETS AT FAIR VALUE CASH AND EQUIVALENTS SHORT-TERM INVESTMENTS Cash $ 839 $ 839 $ — Level 1: U.S. Treasury securities 3,801 8 3,793 Level 2: Commercial paper and bonds 660 37 623 Money market funds 6,458 6,458 — Time deposits 1,237 1,232 5 U.S. Agency securities 2 — 2 Total Level 2 8,357 7,727 630 TOTAL $ 12,997 $ 8,574 $ 4,423 As of May 31, 2023, the Company held $2,563 million of available-for-sale debt securities with maturity dates within one year and $671 million with maturity dates over one year and less than five years in Short-term investments on the Consolidated Balance Sheets. The fair value of the Company's available-for-sale debt securities approximates their amortized cost. Included in Interest expense (income), net was interest income related to the Company's investment portfolio of $297 million, $94 million and $34 million for the years ended May 31, 2023, 2022 and 2021, respectively. The Company records the assets and liabilities of its derivative financial instruments on a gross basis on the Consolidated Balance Sheets. 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. Any amounts of cash collateral received related to these instruments associated with the Company's credit-related contingent features are recorded in Cash and equivalents and Accrued liabilities, the latter of which would further offset against the Company's derivative asset balance. Any amounts of cash collateral posted related to these instruments associated with the Company's credit-related contingent features are recorded in Prepaid expenses and other current assets, which would further offset against the Company's derivative liability balance. Cash collateral received or posted related to the Company's credit-related contingent features is presented in the Cash provided by operations component of the Consolidated Statements of Cash Flows. The Company does not recognize amounts of non-cash collateral received, such as securities, on the Consolidated Balance Sheets. For further information related to credit risk, refer to Note 12 — Risk Management and Derivatives. The following tables present information about the Company's derivative assets and liabilities measured at fair value on a recurring basis and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement: MAY 31, 2023 DERIVATIVE ASSETS DERIVATIVE LIABILITIES (Dollars in millions) ASSETS AT FAIR VALUE OTHER CURRENT ASSETS OTHER LONG-TERM ASSETS LIABILITIES AT FAIR VALUE ACCRUED LIABILITIES OTHER LONG-TERM LIABILITIES Level 2: Foreign exchange forwards and options (1) $ 557 $ 493 $ 64 $ 180 $ 128 $ 52 (1) If the foreign exchange derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $178 million as of May 31, 2023. As of that date, the Company received $36 million of cash collateral from various counterparties related to foreign exchange derivative instruments. No amount of collateral was posted on the derivative liability balance as of May 31, 2023. MAY 31, 2022 DERIVATIVE ASSETS DERIVATIVE LIABILITIES (Dollars in millions) ASSETS AT FAIR VALUE OTHER CURRENT ASSETS OTHER LONG-TERM ASSETS LIABILITIES AT FAIR VALUE ACCRUED LIABILITIES OTHER LONG-TERM LIABILITIES Level 2: Foreign exchange forwards and options and embedded derivatives (1) $ 880 $ 674 $ 206 $ 77 $ 66 $ 11 (1) If the foreign exchange derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $76 million as of May 31, 2022. As of that date, the Company had received $486 million of cash collateral from various counterparties related to foreign exchange derivative instruments. No amount of collateral was posted on the Company's derivative liability balance as of May 31, 2022. For additional information related to the Company's derivative financial instruments, refer to Note 12 — Risk Management and Derivatives. For fair value information regarding Notes payable and Long-term debt, refer to Note 5 — Short-Term Borrowings and Credit Lines and Note 6 — Long-Term Debt, respectively. The carrying amounts of other current financial assets and other current financial liabilities approximate fair value. NON-RECURRING FAIR VALUE MEASUREMENTS As further discussed in Note 18 — Acquisitions and Divestitures, the Company met the criteria to recognize the related assets and liabilities of its Argentina, Chile and Uruguay entities as held-for-sale as of May 31, 2022. This required the Company to remeasure the disposal groups at fair value, less costs to sell, which is considered a Level 3 fair value measurement and was based on each transaction's estimated consideration. All other assets or liabilities required to be measured at fair value on a non-recurring basis as of May 31, 2023 and 2022 were immaterial. |
Short-Term Borrowings and Credi
Short-Term Borrowings and Credit Lines | 12 Months Ended |
May 31, 2023 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings and Credit Lines | NOTE 5 — SHORT-TERM BORROWINGS AND CREDIT LINES The carrying amounts reflected in the Consolidated Balance Sheets for Notes payable approximate fair value. On March 11, 2022, the Company entered into a five-year committed credit facility agreement with a syndicate of banks which provides for up to $2 billion of borrowings, with the option to increase borrowings up to $3 billion in total with lender approval. The facility matures on March 11, 2027, with options to extend the maturity date up to an additional two years. This facility replaces the prior $2 billion five-year credit facility agreement entered into on August 16, 2019, which would have matured on August 16, 2024. Based on the Company's current long-term senior unsecured debt ratings of AA- and A1 from Standard and Poor's Corporation and Moody's Investor Services, respectively, the interest rate charged on any outstanding borrowings would be the prevailing Term SOFR for the applicable interest period plus 0.60%. The facility fee is 0.04% of the total undrawn commitment. On March 10, 2023, the Company entered into a 364-day committed credit facility agreement with a syndicate of banks, which provides for up to $1 billion of borrowings, with an option to increase borrowings up to $1.5 billion in total with lender approval. The facility matures on March 8, 2024, with an option to extend the maturity date an additional 364 days. This facility replaces the prior $1 billion 364-day credit facility agreement entered into on March 11, 2022, which matured on March 10, 2023. Based on the Company's current long-term senior unsecured debt ratings of AA- and A1 from Standard and Poor's Corporation and Moody's Investor Services, respectively, the interest rate charged on any outstanding borrowings would be the prevailing Term Secured Overnight Financing Rate ("Term SOFR") for the applicable interest period plus 0.60%. The facility fee is 0.02% of the total undrawn commitment. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
May 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | NOTE 6 — LONG-TERM DEBT Long-term debt, net of unamortized premiums, discounts and debt issuance costs, comprises the following: BOOK VALUE OUTSTANDING Scheduled Maturity (Dollars in millions) ORIGINAL PRINCIPAL INTEREST RATE INTEREST PAYMENTS 2023 2022 Corporate Term Debt: (1)(2) May 1, 2023 $ 500 2.25 % Semi-Annually $ — $ 500 March 27, 2025 1,000 2.40 % Semi-Annually 998 996 November 1, 2026 1,000 2.38 % Semi-Annually 997 997 March 27, 2027 1,000 2.75 % Semi-Annually 997 996 March 27, 2030 1,500 2.85 % Semi-Annually 1,492 1,491 March 27, 2040 1,000 3.25 % Semi-Annually 987 986 May 1, 2043 500 3.63 % Semi-Annually 496 496 November 1, 2045 1,000 3.88 % Semi-Annually 986 985 November 1, 2046 500 3.38 % Semi-Annually 492 492 March 27, 2050 1,500 3.38 % Semi-Annually 1,482 1,481 Total 8,927 9,420 Less Current Portion of Long-Term Debt — 500 TOTAL LONG-TERM DEBT $ 8,927 $ 8,920 (1) These senior unsecured obligations rank equally with the Company's other unsecured and unsubordinated indebtedness. (2) The bonds are redeemable at the Company's option at a price equal to the greater of (i) 100% of the aggregate principal amount of the notes to be redeemed or (ii) the sum of the present values of the remaining scheduled payments, plus in each case, accrued and unpaid interest. However, the bonds also feature a par call provision, which allows for the bonds to be redeemed at a price equal to 100% of the aggregate principal amount of the notes being redeemed, plus accrued and unpaid interest on or after the Par Call Date, as defined in the respective notes. The scheduled maturity of Long-term debt in each of the years ending May 31, 2024 through 2028, are $0 million, $1,000 million, $0 million, $2,000 million and $0 million, respectively, at face value. |
Income Taxes
Income Taxes | 12 Months Ended |
May 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 7 — INCOME TAXES Income before income taxes is as follows: YEAR ENDED MAY 31, (Dollars in millions) 2023 2022 2021 Income before income taxes: United States $ 4,663 $ 6,020 $ 5,723 Foreign 1,538 631 938 TOTAL INCOME BEFORE INCOME TAXES $ 6,201 $ 6,651 $ 6,661 The provision for income taxes is as follows: YEAR ENDED MAY 31, (Dollars in millions) 2023 2022 2021 Current: United States Federal $ 430 $ 231 $ 328 State 184 98 134 Foreign 634 926 857 Total Current 1,248 1,255 1,319 Deferred: United States Federal (162) (522) (371) State (25) (16) (34) Foreign 70 (112) 20 Total Deferred (117) (650) (385) TOTAL INCOME TAX EXPENSE $ 1,131 $ 605 $ 934 A reconciliation from the U.S. statutory federal income tax rate to the effective income tax rate is as follows: YEAR ENDED MAY 31, 2023 2022 2021 Federal income tax rate 21.0 % 21.0 % 21.0 % State taxes, net of federal benefit 1.5 % 1.4 % 1.3 % Foreign earnings 1.7 % -1.8 % 0.2 % Subpart F deferred tax benefit 0.0 % -4.7 % 0.0 % Foreign-derived intangible income benefit -6.1 % -4.1 % -3.7 % Excess tax benefits from stock-based compensation -1.1 % -4.9 % -4.5 % Income tax audits and contingency reserves 1.0 % 1.5 % 1.5 % U.S. research and development tax credit -1.2 % -1.0 % -0.9 % Other, net 1.4 % 1.7 % -0.9 % EFFECTIVE INCOME TAX RATE 18.2 % 9.1 % 14.0 % On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (the "Tax Act"), which significantly changed U.S. tax law and included a provision to tax global intangible low-taxed income ("GILTI") of foreign subsidiaries. The Company recognizes taxes due under the GILTI provision as a current period expense. The effective tax rate for the fiscal year ended May 31, 2023 was higher than the effective tax rate for the fiscal year ended May 31, 2022. The increase was primarily due to decreased benefits from stock-based compensation and the prior year recognition of a non-cash, one-time benefit related to the onshoring of the Company's non-U.S. intangible property. During the fourth quarter of fiscal 2022, the Company onshored certain non-U.S. intangible property ownership rights and implemented changes in the Company's legal entity structure. The tax restructuring increases the possibility that foreign earnings in future periods will be subject to tax in the U.S. due to Subpart F of the Internal Revenue Code. The Company recognized a deferred tax asset and corresponding non-cash deferred income tax benefit of 4.7%, to establish the deferred tax deduction that is expected to reduce taxable income in future periods. The effective tax rate for the fiscal year ended May 31, 2022 was lower than the effective tax rate for the fiscal year ended May 31, 2021. The decrease was primarily due to a shift in the Company's earnings mix and recognition of a non-cash, one-time benefit related to the onshoring of the Company's non-U.S. intangible property. Deferred tax assets and liabilities comprise the following as of: MAY 31, (Dollars in millions) 2023 2022 Deferred tax assets: Inventories (1) $ 79 $ 136 Sales return reserves (1) 89 109 Deferred compensation (1) 321 313 Stock-based compensation 261 195 Reserves and accrued liabilities (1) 144 145 Operating lease liabilities 511 508 Intangibles 255 275 Capitalized research and development expenditures 548 353 Net operating loss carry-forwards 15 8 Subpart F deferred tax 374 313 Foreign tax credit carry-forward — 103 Other (1) 183 148 Total deferred tax assets 2,780 2,606 Valuation allowance (22) (19) Total deferred tax assets after valuation allowance 2,758 2,587 Deferred tax liabilities: Foreign withholding tax on undistributed earnings of foreign subsidiaries (186) (146) Property, plant and equipment (1) (276) (247) Right-of-use assets (441) (437) Other (1) (56) (92) Total deferred tax liabilities (959) (922) NET DEFERRED TAX ASSET (2) $ 1,799 $ 1,665 (1) The above amounts exclude deferred taxes held-for-sale as of May 31, 2022. See Note 18 — Acquisitions and Divestitures for additional information. (2) Of the total $1,799 million net deferred tax asset for the period ended May 31, 2023, $2,026 million was included within Deferred income taxes and other assets and $(227) million was included within Deferred income taxes and other liabilities on the Consolidated Balance Sheets. Of the total $1,665 million net deferred tax asset for the period ended May 31, 2022, $1,891 million was included within Deferred income taxes and other assets and $(226) million was included within Deferred income taxes and other liabilities on the Consolidated Balance Sheets. The following is a reconciliation of the changes in the gross balance of unrecognized tax benefits as of: MAY 31, (Dollars in millions) 2023 2022 2021 Unrecognized tax benefits, beginning of the period $ 848 $ 896 $ 771 Gross increases related to prior period tax positions 95 71 77 Gross decreases related to prior period tax positions (17) (145) (22) Gross increases related to current period tax positions 50 62 59 Settlements (18) (17) (5) Lapse of statute of limitations (7) (10) (6) Changes due to currency translation (15) (9) 22 UNRECOGNIZED TAX BENEFITS, END OF THE PERIOD $ 936 $ 848 $ 896 As of May 31, 2023, total gross unrecognized tax benefits, excluding related interest and penalties, were $936 million, of which $651 million would affect the Company's effective tax rate if recognized in future periods. The majority of the total gross unrecognized tax benefits are long-term in nature and included within Deferred income taxes and other liabilities on the Consolidated Balance Sheets. The Company recognizes interest and penalties related to income tax matters in Income tax expense. The liability for payment of interest and penalties increased by $20 million during the fiscal year ended May 31, 2023, increased by $45 million during the fiscal year ended May 31, 2022, and increased by $45 million during the fiscal year ended May 31, 2021. As of May 31, 2023 and 2022, accrued interest and penalties related to uncertain tax positions were $268 million and $248 million, respectively (excluding federal benefit) and were included within Deferred income taxes and other liabilities on the Consolidated Balance Sheets. As of May 31, 2023 and 2022, long-term income taxes payable were $373 million and $535 million, respectively, and were included within Deferred income taxes and other liabilities on the Consolidated Balance Sheets. The Company is subject to taxation in the U.S., as well as various state and foreign jurisdictions. The Company is currently under audit by the U.S. IRS for fiscal years 2017 through 2019. The Company has closed all U.S. federal income tax matters through fiscal 2016, with the exception of certain transfer pricing adjustments. Tax years after 2011 remain open in certain major foreign jurisdictions. 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 $50 million within the next 12 months. In January 2019, the European Commission opened a formal investigation to examine whether the Netherlands has breached State Aid rules when granting certain tax rulings to the Company. The Company believes the investigation is without merit. If this matter is adversely resolved, the Netherlands may be required to assess additional amounts with respect to prior periods, and the Company's income taxes related to prior periods in the Netherlands could increase. A portion of the Company's foreign operations benefit from a tax holiday, which is set to expire in 2031. This tax holiday may be extended when certain conditions are met or may be terminated early if certain conditions are not met. The tax benefit attributable to this tax holiday, before taking into consideration other U.S. indirect tax provisions, was $263 million, $221 million and $238 million for the fiscal years ended May 31, 2023, 2022 and 2021, respectively. The benefit of the tax holiday on diluted earnings per common share was $0.17, $0.14 and $0.15 for the fiscal years ended May 31, 2023, 2022 and 2021, respectively. Deferred tax assets as of May 31, 2023 and 2022, were reduced by a valuation allowance. For the fiscal year ended May 31, 2023, a valuation allowance was provided for U.S. capital loss carryforwards and on tax benefits generated by certain entities with operating losses. For the fiscal year ended May 31, 2022, a valuation allowance was provided for U.S. capital loss carryforwards and on tax benefits generated by certain entities with operating losses. There was a $3 million net increase in the valuation allowance for the fiscal year ended May 31, 2023, compared to a $7 million net increase for the fiscal year ended May 31, 2022, and $14 million net decrease for the fiscal year ended May 31, 2021. |
Redeemable Preferred Stock
Redeemable Preferred Stock | 12 Months Ended |
May 31, 2023 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable Preferred Stock | NOTE 8 — REDEEMABLE PREFERRED STOCK Sojitz America is the sole owner of the Company's authorized redeemable preferred stock, $1 par value, which is redeemable at the option of Sojitz America or the Company at par value aggregating $0.3 million. A cumulative dividend of $0.10 per share is payable annually on May 31, and no dividends may be declared or paid on the common stock of the Company unless dividends on the redeemable preferred stock have been declared and paid in full. There have been no changes in the redeemable preferred stock in the fiscal years ended May 31, 2023, 2022 and 2021. As the holder of the redeemable preferred stock, Sojitz America does not have general voting rights but does have the right to vote as a separate class on the sale of all or substantially all of the assets of the Company and its subsidiaries; on merger, consolidation, liquidation or dissolution of the Company; or on the sale or assignment of the NIKE trademark for athletic footwear sold in the United States. The redeemable preferred stock has been fully issued to Sojitz America and is not blank check preferred stock. The Company's articles of incorporation do not permit the issuance of additional preferred stock. |
Common Stock and Stock-Based Co
Common Stock and Stock-Based Compensation | 12 Months Ended |
May 31, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Common Stock and Stock-Based Compensation | NOTE 9 — COMMON STOCK AND STOCK-BASED COMPENSATION COMMON STOCK The authorized number of shares of Class A Common Stock, no par value, and Class B Common Stock, no par value, are 400 million and 2,400 million, respectively. Each share of Class A Common Stock is convertible into one share of Class B Common Stock. Voting rights of Class B Common Stock are limited in certain circumstances with respect to the election of directors. There are no differences in the dividend and liquidation preferences or participation rights of the holders of Class A and Class B Common Stock. From time to time, the Company's Board of Directors authorizes share repurchase programs for the repurchase of Class B Common Stock. The value of repurchased shares is deducted from Total shareholders' equity through allocation to Capital in excess of stated value and Retained earnings. STOCK-BASED COMPENSATION The NIKE, Inc. Stock Incentive Plan (the "Stock Incentive Plan") provides for the issuance of up to 798 million previously unissued shares of Class B Common Stock in connection with equity awards granted under the Stock Incentive Plan. The Stock Incentive Plan authorizes the grant of non-statutory stock options, incentive stock options, stock appreciation rights, and stock awards, including restricted stock and restricted stock units. Restricted stock units include both time-vesting restricted stock units ("RSUs") as well as performance-based restricted stock units ("PSUs"). A committee of the Board of Directors administers the Stock Incentive Plan and 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. The Company generally grants stock options, restricted stock and restricted stock units on an annual basis. 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. Substantially all awards under the Stock Incentive Plan vest ratably over 4 years of continued employment, with stock options expiring 10 years from the date of grant. The following table summarizes the Company's total stock-based compensation expense recognized in Cost of sales or Operating overhead expense, as applicable: YEAR ENDED MAY 31, (Dollars in millions) 2023 2022 2021 Stock options (1) $ 311 $ 297 $ 323 ESPPs 72 60 63 Restricted stock and restricted stock units (1)(2) 372 281 225 TOTAL STOCK-BASED COMPENSATION EXPENSE $ 755 $ 638 $ 611 (1) Expense for stock options includes the expense associated with stock appreciation rights. Accelerated stock option expense is primarily recorded for employees meeting certain retirement eligibility requirements and was $64 million, $57 million and $67 million for the fiscal years ended May 31, 2023, 2022 and 2021, respectively. During fiscal 2021, an immaterial amount of accelerated stock option and restricted stock unit expense was also recorded for certain employees impacted by the Company's organizational realignment. For more information, see Note 19 — Restructuring. (2) For the fiscal years ended May 31, 2023 and 2022, expense for restricted stock units includes an immaterial amount of expense for PSUs. The income tax benefit related to stock-based compensation expense was $71 million, $327 million and $297 million for the fiscal years ended May 31, 2023, 2022 and 2021, respectively, and reported within Income tax expense. STOCK OPTIONS The weighted average fair value per share of stock options granted during the years ended May 31, 2023, 2022 and 2021, computed as of the grant date using the Black-Scholes pricing model, was $31.31, $37.53 and $26.75, respectively. The weighted average assumptions used to estimate these fair values were as follows: YEAR ENDED MAY 31, 2023 2022 2021 Dividend yield 0.9 % 0.8 % 0.9 % Expected volatility 27.1 % 24.9 % 27.3 % Weighted average expected life (in years) 5.8 5.8 6.0 Risk-free interest rate 3.3 % 0.9 % 0.4 % Expected volatilities are based on an analysis of the historical volatility of the Company's common stock, the implied volatility in market traded options on the Company's common stock with a term greater than one year, as well as other factors. The weighted average expected life of options is based on an analysis of historical and expected future exercise patterns. The interest rate is based on the U.S. Treasury (constant maturity) risk-free rate in effect at the date of grant for periods corresponding with the expected term of the options. The following summarizes the stock option transactions under the plan discussed above: SHARES (1) WEIGHTED AVERAGE OPTION PRICE (In millions) Options outstanding as of May 31, 2022 68.0 $ 88.66 Exercised (7.5) 57.11 Forfeited (1.5) 122.93 Granted 12.0 107.44 Options outstanding as of May 31, 2023 71.0 $ 94.40 (1) Includes stock appreciation rights transactions. Options exercisable as of May 31, 2023 were 44.7 million and had a weighted average option price of $79.95 per share. The aggregate intrinsic value for options outstanding and exercisable as of May 31, 2023 was $1,380 million and $1,307 million, respectively. The total intrinsic value of the options exercised during the years ended May 31, 2023, 2022 and 2021 was $438 million, $1,742 million and $1,571 million, respectively. The intrinsic value is the amount by which the market value of the underlying stock exceeds the exercise price of the options. The weighted average contractual life remaining for options outstanding and options exercisable as of May 31, 2023 was 5.9 years and 4.5 years, respectively. As of May 31, 2023, the Company had $425 million of unrecognized compensation costs from stock options, net of estimated forfeitures, to be recognized in Cost of sales or Operating overhead expense, as applicable, over a weighted average remaining period of 2.5 years. EMPLOYEE STOCK PURCHASE PLANS In addition to the Stock Incentive Plan, the Company gives employees the right to purchase shares at a discount from the market price under ESPPs. Subject to the annual statutory limit, employees are eligible to participate through payroll deductions of up to 10% of their compensation. At the end of each six-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. Employees purchased 3.0 million, 2.0 million and 2.5 million shares during each of the fiscal years ended May 31, 2023, 2022 and 2021, respectively. RESTRICTED STOCK AND RESTRICTED STOCK UNITS Recipients of restricted stock are entitled to cash dividends and to vote their respective shares throughout the period of restriction. Recipients of restricted stock units, which includes RSUs and PSUs, are entitled to dividend equivalent cash payments upon vesting. The number of shares of restricted stock and restricted stock units vested includes shares of common stock withheld by the Company on behalf of employees to satisfy the minimum statutory tax withholding requirements. The following summarizes the restricted stock and restricted stock units transactions under the plan discussed above: SHARES (1) WEIGHTED AVERAGE GRANT DATE (In millions) Nonvested as of May 31, 2022 6.7 $ 130.88 Vested (2.2) 114.85 Forfeited (0.7) 131.10 Granted 4.5 115.56 Nonvested as of May 31, 2023 8.3 $ 126.97 (1) Includes an immaterial amount of PSU transactions The weighted average fair value per share of restricted stock and restricted stock units granted for the fiscal years ended May 31, 2023, 2022 and 2021, computed as of the grant date, was $115.56, $168.04 and $113.84, respectively. During the fiscal years ended May 31, 2023, 2022 and 2021, the aggregate fair value of vested restricted stock and restricted stock units was $250 million, $354 million and $310 million, respectively, computed as of the date of vesting. As of May 31, 2023, the Company had $649 million of unrecognized compensation costs from restricted stock and restricted stock units, net of estimated forfeitures, to be recognized in Cost of sales or Operating overhead expense, as applicable, over a weighted average remaining period of 2.3 years. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
May 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 10 — EARNINGS PER SHARE The following is a reconciliation from basic earnings per common share to diluted earnings per common share. The computations of diluted earnings per common share excluded restricted stock, restricted stock units and options, including shares under ESPPs, to purchase an estimated additional 31.7 million, 9.4 million and 11.3 million shares of common stock outstanding for the fiscal years ended May 31, 2023, 2022 and 2021, respectively, because the awards were assumed to be anti-dilutive. YEAR ENDED MAY 31, (In millions, except per share data) 2023 2022 2021 Net income available to common stockholders $ 5,070 $ 6,046 $ 5,727 Determination of shares: Weighted average common shares outstanding 1,551.6 1,578.8 1,573.0 Assumed conversion of dilutive stock options and awards 18.2 32.0 36.4 DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 1,569.8 1,610.8 1,609.4 Earnings per common share: Basic $ 3.27 $ 3.83 $ 3.64 Diluted $ 3.23 $ 3.75 $ 3.56 |
Benefit Plans
Benefit Plans | 12 Months Ended |
May 31, 2023 | |
Retirement Benefits [Abstract] | |
Benefit Plans | NOTE 11 — BENEFIT PLANS The Company has a qualified 401(k) Savings and Profit Sharing Plan, in which all U.S. employees are able to participate. The Company matches a portion of employee contributions to the savings plan. Company contributions to the savings plan were $136 million, $126 million and $110 million and included in Cost of sales or Operating overhead expense, as applicable, for the fiscal years ended May 31, 2023, 2022 and 2021, respectively. The Company also has a Long-Term Incentive Plan ("LTIP") adopted by the Board of Directors and approved by shareholders in September 1997, which has been amended from time to time. The Company recognized an immaterial amount of Operating overhead expense related to cash awards under the LTIP during the years ended May 31, 2023, 2022 and 2021. During the fiscal years ended May 31, 2023 and 2022, under the Stock Incentive Plan, the Company granted PSUs which replaced cash-based long-term incentive awards historically granted under the Company's LTIP. Refer to Note 9 — Common Stock and Stock-Based Compensation for further information related to PSUs. The Company allows certain highly compensated employees and non-employee directors of the Company to defer compensation under a nonqualified deferred compensation plan. A rabbi trust was established to fund the Company's nonqualified deferred compensation plan obligation. The assets in the rabbi trust of approximately $875 million and $876 million as of May 31, 2023 and 2022, respectively, primarily consist of company owned life insurance policies recorded at their cash surrender value and are classified in Deferred income taxes and other assets on the Consolidated Balance Sheets. Deferred compensation plan liabilities were $897 million and $890 million as of May 31, 2023 and 2022, respectively, and primarily classified in Deferred income taxes and other liabilities on the Consolidated Balance Sheets. The Company has pension plans in various countries worldwide. The pension plans are only available to local employees and are generally government mandated. The liability related to the unfunded pension liabilities of the plans was $29 million and $30 million as of May 31, 2023 and 2022, respectively, and primarily classified as non-current in Deferred income taxes and other liabilities on the Consolidated Balance Sheets. |
Risk Management and Derivatives
Risk Management and Derivatives | 12 Months Ended |
May 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Risk Management and Derivatives | NOTE 12 — 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 U.S. GAAP. 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 and assessing, both at inception and on an ongoing basis, the effectiveness of the hedging relationships. The majority of derivatives outstanding as of May 31, 2023, are designated as foreign currency cash flow hedges, primarily for Euro/U.S. Dollar, British Pound/Euro, Chinese Yuan/U.S. Dollar and Japanese Yen/U.S. Dollar currency pairs. All derivatives are recognized on the Consolidated Balance Sheets at fair value and classified based on the instrument's maturity date. The following tables present the fair values of derivative instruments included within the Consolidated Balance Sheets: DERIVATIVE ASSETS BALANCE SHEET LOCATION MAY 31, (Dollars in millions) 2023 2022 Derivatives formally designated as hedging instruments: Foreign exchange forwards and options Prepaid expenses and other current assets $ 480 $ 639 Foreign exchange forwards and options Deferred income taxes and other assets 64 206 Total derivatives formally designated as hedging instruments 544 845 Derivatives not designated as hedging instruments: Foreign exchange forwards and options and embedded derivatives Prepaid expenses and other current assets 13 35 Total derivatives not designated as hedging instruments 13 35 TOTAL DERIVATIVE ASSETS $ 557 $ 880 DERIVATIVE LIABILITIES BALANCE SHEET LOCATION MAY 31, (Dollars in millions) 2023 2022 Derivatives formally designated as hedging instruments: Foreign exchange forwards and options Accrued liabilities $ 93 $ 37 Foreign exchange forwards and options Deferred income taxes and other liabilities 52 11 Total derivatives formally designated as hedging instruments 145 48 Derivatives not designated as hedging instruments: Foreign exchange forwards and options and embedded derivatives Accrued liabilities 35 29 Total derivatives not designated as hedging instruments 35 29 TOTAL DERIVATIVE LIABILITIES $ 180 $ 77 The following table presents the amounts in the Consolidated Statements of Income in which the effects of cash flow hedges are recorded and the effects of cash flow hedge activity on these line items for the fiscal years ended May 31, 2023, 2022 and 2021: YEAR ENDED MAY 31, 2023 2022 2021 (Dollars in millions) TOTAL AMOUNT OF TOTAL AMOUNT OF TOTAL AMOUNT OF Revenues $ 51,217 $ 26 $ 46,710 $ (82) $ 44,538 $ 45 Cost of sales 28,925 581 25,231 (23) 24,576 51 Demand creation expense 4,060 (5) 3,850 1 3,114 3 Other (income) expense, net (280) 338 (181) 130 14 (47) Interest expense (income), net (6) (8) 205 (7) 262 (7) The following tables present the amounts affecting the Consolidated Statements of Income for the years ended May 31, 2023, 2022 and 2021: (Dollars in millions) AMOUNT OF GAIN (LOSS) (1) AMOUNT OF GAIN (LOSS) (1) YEAR ENDED MAY 31, LOCATION OF GAIN (LOSS) YEAR ENDED MAY 31, 2023 2022 2021 2023 2022 2021 Derivatives designated as cash flow hedges: Foreign exchange forwards and options $ 16 $ (39) $ (61) Revenues $ 26 $ (82) $ 45 Foreign exchange forwards and options 305 889 (563) Cost of sales 581 (23) 51 Foreign exchange forwards and options (1) (6) 5 Demand creation expense (5) 1 3 Foreign exchange forwards and options 207 492 (163) Other (income) expense, net 338 130 (47) Interest rate swaps (2) — — — Interest expense (income), net (8) (7) (7) Total designated cash flow hedges $ 527 $ 1,336 $ (782) $ 932 $ 19 $ 45 (1) For the fiscal years ended May 31, 2023, 2022, and 2021, the amounts recorded in Other (income) expense, net as a result of the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial. (2) Gains and losses associated with terminated interest rate swaps, which were previously designated as cash flow hedges and recorded in Accumulated other comprehensive income (loss), will be released through Interest expense (income), net over the term of the issued debt. AMOUNT OF GAIN (LOSS) RECOGNIZED LOCATION OF GAIN (LOSS) YEAR ENDED MAY 31, (Dollars in millions) 2023 2022 2021 Derivatives designated as hedging instruments: Foreign exchange forwards and options and embedded derivatives $ 28 $ 38 $ (167) Other (income) expense, net CASH FLOW HEDGES All changes in fair value of derivatives designated as cash flow hedge instruments are recorded in Accumulated other comprehensive income (loss) until Net income is affected by the variability of cash flows of the hedged transaction. Effective hedge results are classified in the Consolidated Statements of Income in the same manner as the underlying exposure. When it is no longer probable the forecasted hedged transaction will occur in the initially identified time period, hedge accounting is discontinued and the Company accounts for the associated derivative as an undesignated instrument as discussed below. Additionally, the gains and losses associated with derivatives no longer designated as cash flow hedge instruments in Accumulated other comprehensive income (loss) are recognized immediately in Other (income) expense, net, if it is probable the forecasted hedged transaction will not occur by the end of the initially identified time period or within an additional two-month period thereafter. In rare circumstances, the additional period of time may exceed two months due to extenuating circumstances related to the nature of the forecasted transaction that are outside the control or influence of the Company. The purpose of the Company's foreign exchange risk management program is to lessen both the positive and negative effects of currency fluctuations on the Company's consolidated results of operations, financial position and cash flows. Foreign currency exposures the Company may elect to hedge in this manner include product costs, non-functional currency denominated revenues, intercompany revenues, demand creation expenses, investments in U.S. Dollar denominated available-for-sale debt securities and certain other intercompany transactions. Product cost foreign currency exposures are primarily generated through non-functional currency denominated product purchases. NIKE entities primarily purchase product 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 product to NIKE entities in their respective functional currencies. NTC sales to a NIKE entity with a different functional currency result in 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's policy permits the utilization of derivatives to reduce its foreign currency exposures where internal netting or other strategies cannot be effectively employed. 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. The total notional amount of outstanding foreign currency derivatives designated as cash flow hedges was $18.2 billion as of May 31, 2023. As of May 31, 2023, approximately $419 million of deferred net gains (net of tax) on both outstanding and matured derivatives in Accumulated other comprehensive income (loss) are 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 currently outstanding mature. As of May 31, 2023, the maximum term over which the Company hedges exposures to the variability of cash flows for its forecasted transactions was 27 months. FAIR VALUE HEDGES The Company has, in the past, been exposed to the risk of changes in the fair value of certain fixed-rate debt attributable to changes in interest rates. Derivatives used by the Company to hedge this risk are receive-fixed, pay-variable interest rate swaps. The Company had no interest rate swaps designated as fair value hedges as of May 31, 2023. NET INVESTMENT HEDGES The Company has, in the past, 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 are reported in Accumulated other comprehensive income (loss) along with the foreign currency translation adjustments on those investments. The Company had no outstanding net investment hedges as of May 31, 2023. 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 Consolidated Balance Sheets. These undesignated instruments are recorded at fair value as a derivative asset or liability on the Consolidated Balance Sheets with their corresponding change in fair value recognized in Other (income) expense, net, together with the remeasurement gain or loss from the hedged balance sheet position. The total notional amount of outstanding undesignated derivative instruments was $4.7 billion as of May 31, 2023. 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 trigger collateral requirements. As of May 31, 2023, the Company was in compliance with all credit risk-related contingent features, and derivative instruments with such features were in a net liability position of approximately $2 million. Accordingly, the Company posted no cash collateral as a result of these contingent features. Further, as of May 31, 2023, the Company had received $36 million in cash collateral from various counterparties to its derivative contracts. The Company considers the impact of the risk of counterparty default to be immaterial. For additional information related to the Company's derivative financial instruments and collateral, refer to Note 4 — Fair Value Measurements. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
May 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | NOTE 13 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The changes in Accumulated other comprehensive income (loss), net of tax, were as follows: (Dollars in millions) FOREIGN CURRENCY TRANSLATION ADJUSTMENT (1) CASH FLOW HEDGES NET INVESTMENT HEDGES (1) OTHER TOTAL Balance at May 31, 2022 $ (520) $ 779 $ 115 $ (56) $ 318 Other comprehensive income (loss): Other comprehensive gains (losses) before reclassifications (2) (91) 487 — (20) 376 Reclassifications to net income of previously deferred (gains) losses (3) 358 (835) — 14 (463) Total other comprehensive income (loss) 267 (348) — (6) (87) Balance at May 31, 2023 $ (253) $ 431 $ 115 $ (62) $ 231 (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, $(40) million, $0 million, $6 million and $(34) million, respectively. (3) Net of tax (benefit) expense of $(16) million, $97 million, $0 million, $(5) million and $76 million, respectively. (Dollars in millions) FOREIGN CURRENCY TRANSLATION ADJUSTMENT (1) CASH FLOW HEDGES NET INVESTMENT HEDGES (1) OTHER TOTAL Balance at May 31, 2021 $ 2 $ (435) $ 115 $ (62) $ (380) Other comprehensive income (loss): Other comprehensive gains (losses) before reclassifications (2) (522) 1,222 — 28 728 Reclassifications to net income of previously deferred (gains) losses (3) — (8) — (22) (30) Total other comprehensive income (loss) (522) 1,214 — 6 698 Balance at May 31, 2022 $ (520) $ 779 $ 115 $ (56) $ 318 (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, $(114) million, $0 million, $(9) million and $(123) million, respectively. (3) Net of tax (benefit) expense of $0 million, $11 million, $0 million, $9 million and $20 million, respectively. The following table summarizes the reclassifications from Accumulated other comprehensive income (loss) to the Consolidated Statements of Income: AMOUNT OF GAIN (LOSS) LOCATION OF GAIN (LOSS) YEAR ENDED MAY 31, (Dollars in millions) 2023 2022 Gains (losses) on foreign currency translation adjustment $ (374) $ — Other (income) expense, net Total before tax (374) — Tax (expense) benefit 16 — Gain (loss) net of tax (358) — Gains (losses) on cash flow hedges: Foreign exchange forwards and options 26 (82) Revenues Foreign exchange forwards and options 581 (23) Cost of sales Foreign exchange forwards and options (5) 1 Demand creation expense Foreign exchange forwards and options 338 130 Other (income) expense, net Interest rate swaps (8) (7) Interest expense (income), net Total before tax 932 19 Tax (expense) benefit (97) (11) Gain (loss) net of tax 835 8 Gains (losses) on other (19) 31 Other (income) expense, net Total before tax (19) 31 Tax (expense) benefit 5 (9) Gain (loss) net of tax (14) 22 Total net gain (loss) reclassified for the period $ 463 $ 30 |
Revenues
Revenues | 12 Months Ended |
May 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | NOTE 14 — REVENUES DISAGGREGATION OF REVENUES The following tables present the Company's Revenues disaggregated by reportable operating segment, major product line and distribution channel: YEAR ENDED MAY 31, 2023 (Dollars in millions) NORTH AMERICA EUROPE, MIDDLE EAST & AFRICA GREATER CHINA ASIA PACIFIC & LATIN AMERICA (1) GLOBAL BRAND DIVISIONS TOTAL NIKE BRAND CONVERSE CORPORATE TOTAL NIKE, INC. Revenues by: Footwear $ 14,897 $ 8,260 $ 5,435 $ 4,543 $ — $ 33,135 $ 2,155 $ — $ 35,290 Apparel 5,947 4,566 1,666 1,664 — 13,843 90 — 13,933 Equipment 764 592 147 224 — 1,727 28 — 1,755 Other — — — — 58 58 154 27 239 TOTAL REVENUES $ 21,608 $ 13,418 $ 7,248 $ 6,431 $ 58 $ 48,763 $ 2,427 $ 27 $ 51,217 Revenues by: Sales to Wholesale Customers $ 11,273 $ 8,522 $ 3,866 $ 3,736 $ — $ 27,397 $ 1,299 $ — $ 28,696 Sales through Direct to Consumer 10,335 4,896 3,382 2,695 — 21,308 974 — 22,282 Other — — — — 58 58 154 27 239 TOTAL REVENUES $ 21,608 $ 13,418 $ 7,248 $ 6,431 $ 58 $ 48,763 $ 2,427 $ 27 $ 51,217 (1) Refer to Note 18 — Acquisitions and Divestitures for additional information on the transition of the Company's NIKE Brand businesses in its CASA territory to third-party distributors. YEAR ENDED MAY 31, 2022 (Dollars in millions) NORTH AMERICA EUROPE, MIDDLE EAST & AFRICA GREATER CHINA ASIA PACIFIC & LATIN AMERICA GLOBAL BRAND DIVISIONS TOTAL NIKE BRAND CONVERSE CORPORATE TOTAL NIKE, INC. Revenues by: Footwear $ 12,228 $ 7,388 $ 5,416 $ 4,111 $ — $ 29,143 $ 2,094 $ — $ 31,237 Apparel 5,492 4,527 1,938 1,610 — 13,567 103 — 13,670 Equipment 633 564 193 234 — 1,624 26 — 1,650 Other — — — — 102 102 123 (72) 153 TOTAL REVENUES $ 18,353 $ 12,479 $ 7,547 $ 5,955 $ 102 $ 44,436 $ 2,346 $ (72) $ 46,710 Revenues by: Sales to Wholesale Customers $ 9,621 $ 8,377 $ 4,081 $ 3,529 $ — $ 25,608 $ 1,292 $ — $ 26,900 Sales through Direct to Consumer 8,732 4,102 3,466 2,426 — 18,726 931 — 19,657 Other — — — — 102 102 123 (72) 153 TOTAL REVENUES $ 18,353 $ 12,479 $ 7,547 $ 5,955 $ 102 $ 44,436 $ 2,346 $ (72) $ 46,710 YEAR ENDED MAY 31, 2021 (Dollars in millions) NORTH AMERICA EUROPE, MIDDLE EAST & AFRICA GREATER CHINA ASIA PACIFIC & LATIN AMERICA (1) GLOBAL BRAND DIVISIONS TOTAL NIKE BRAND CONVERSE CORPORATE TOTAL NIKE, INC. Revenues by: Footwear $ 11,644 $ 6,970 $ 5,748 $ 3,659 $ — $ 28,021 $ 1,986 $ — $ 30,007 Apparel 5,028 3,996 2,347 1,494 — 12,865 104 — 12,969 Equipment 507 490 195 190 — 1,382 29 — 1,411 Other — — — — 25 25 86 40 151 TOTAL REVENUES $ 17,179 $ 11,456 $ 8,290 $ 5,343 $ 25 $ 42,293 $ 2,205 $ 40 $ 44,538 Revenues by: Sales to Wholesale Customers $ 10,186 $ 7,812 $ 4,513 $ 3,387 $ — $ 25,898 $ 1,353 $ — $ 27,251 Sales through Direct to Consumer 6,993 3,644 3,777 1,956 — 16,370 766 — 17,136 Other — — — — 25 25 86 40 151 TOTAL REVENUES $ 17,179 $ 11,456 $ 8,290 $ 5,343 $ 25 $ 42,293 $ 2,205 $ 40 $ 44,538 (1) Refer to Note 18 — Acquisitions and Divestitures for additional information on the transition of the Company's NIKE Brand business in Brazil to a third-party distributor. For the fiscal years ended May 31, 2023, 2022 and 2021, Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment. Converse Other revenues were primarily attributable to licensing businesses. Corporate revenues primarily consisted of foreign currency hedge gains and losses related to revenues generated by entities within the NIKE Brand geographic operating segments and Converse but managed through the Company's central foreign exchange risk management program. As of May 31, 2023 and 2022, the Company did not have any contract assets and had an immaterial amount of contract liabilities recorded in Accrued liabilities on the Consolidated Balance Sheets. SALES-RELATED RESERVES As of May 31, 2023 and 2022, the Company's sales-related reserve balance, which includes returns, post-invoice sales discounts and miscellaneous claims, was $994 million and $1,015 million, respectively, recorded in Accrued liabilities on the Consolidated Balance Sheets. The estimated cost of inventory for expected product returns was $226 million and $194 million as of May 31, 2023 and 2022, respectively, and was recorded in Prepaid expenses and other current assets on the Consolidated Balance Sheets. |
Operating Segments and Related
Operating Segments and Related Information | 12 Months Ended |
May 31, 2023 | |
Segment Reporting [Abstract] | |
Operating Segments and Related Information | NOTE 15 — OPERATING SEGMENTS AND RELATED INFORMATION 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 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; Europe, Middle East & Africa ("EMEA"); Greater China; and Asia Pacific & Latin America ("APLA"), and include results for the NIKE and Jordan brands. Refer to Note 18 — Acquisitions and Divestitures for information regarding the transition of NIKE Brand businesses in certain countries within APLA to third-party distributors. The Company's NIKE Direct operations are managed within each NIKE Brand geographic operating segment. Converse is also a reportable segment for the Company and operates in one industry: the design, marketing, licensing and selling of athletic lifestyle 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 revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment. Global Brand Divisions costs represent demand creation and operating overhead expense that include product creation and design expenses centrally managed for the NIKE Brand, as well as costs associated with NIKE Direct global digital operations and enterprise technology. Corporate consists primarily of unallocated general and administrative expenses, including expenses associated with centrally managed departments; depreciation and amortization related to the Company's headquarters; unallocated insurance, benefit and compensation programs, including stock-based compensation; and certain foreign currency gains and losses, including certain hedge gains and losses. The primary financial measure used by the Company to evaluate performance of individual operating segments is earnings before interest and taxes ("EBIT"), which represents Net income before Interest expense (income), net and Income tax expense in the Consolidated Statements of Income. 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 to Converse. These rates are set approximately nine and twelve months in advance of the future selling seasons to which they relate (specifically, for each currency, one standard rate applies to the fall and holiday selling seasons, and one standard rate applies to the spring and summer selling seasons) 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 the 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, net, Inventories and Property, plant and equipment, net for operating segments are regularly reviewed by management and are therefore provided below. YEAR ENDED MAY 31, (Dollars in millions) 2023 2022 2021 REVENUES North America $ 21,608 $ 18,353 $ 17,179 Europe, Middle East & Africa 13,418 12,479 11,456 Greater China 7,248 7,547 8,290 Asia Pacific & Latin America 6,431 5,955 5,343 Global Brand Divisions 58 102 25 Total NIKE Brand 48,763 44,436 42,293 Converse 2,427 2,346 2,205 Corporate 27 (72) 40 TOTAL NIKE, INC. REVENUES $ 51,217 $ 46,710 $ 44,538 EARNINGS BEFORE INTEREST AND TAXES North America $ 5,454 $ 5,114 $ 5,089 Europe, Middle East & Africa 3,531 3,293 2,435 Greater China 2,283 2,365 3,243 Asia Pacific & Latin America 1,932 1,896 1,530 Global Brand Divisions (4,841) (4,262) (3,656) Converse 676 669 543 Corporate (2,840) (2,219) (2,261) Interest expense (income), net (6) 205 262 TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES $ 6,201 $ 6,651 $ 6,661 ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT North America $ 283 $ 146 $ 98 Europe, Middle East & Africa 215 197 153 Greater China 56 78 94 Asia Pacific & Latin America 64 56 54 Global Brand Divisions 271 222 278 Total NIKE Brand 889 699 677 Converse 7 9 7 Corporate 140 103 107 TOTAL ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT $ 1,036 $ 811 $ 791 DEPRECIATION North America $ 128 $ 124 $ 130 Europe, Middle East & Africa 120 134 136 Greater China 54 41 46 Asia Pacific & Latin America 42 42 43 Global Brand Divisions 211 220 222 Total NIKE Brand 555 561 577 Converse 17 22 26 Corporate 131 134 141 TOTAL DEPRECIATION $ 703 $ 717 $ 744 AS OF MAY 31, (Dollars in millions) 2023 2022 ACCOUNTS RECEIVABLE, NET North America $ 1,653 $ 1,850 Europe, Middle East & Africa 1,197 1,351 Greater China 162 406 Asia Pacific & Latin America (1) 700 664 Global Brand Divisions 96 113 Total NIKE Brand 3,808 4,384 Converse 235 230 Corporate 88 53 TOTAL ACCOUNTS RECEIVABLE, NET $ 4,131 $ 4,667 INVENTORIES North America $ 3,806 $ 4,098 Europe, Middle East & Africa 2,167 1,887 Greater China 973 1,044 Asia Pacific & Latin America (1) 894 686 Global Brand Divisions 232 197 Total NIKE Brand 8,072 7,912 Converse 305 279 Corporate 77 229 TOTAL INVENTORIES $ 8,454 $ 8,420 PROPERTY, PLANT AND EQUIPMENT, NET North America $ 794 $ 639 Europe, Middle East & Africa 1,009 920 Greater China 292 303 Asia Pacific & Latin America (1) 279 274 Global Brand Divisions 840 789 Total NIKE Brand 3,214 2,925 Converse 38 49 Corporate 1,829 1,817 TOTAL PROPERTY, PLANT AND EQUIPMENT, NET $ 5,081 $ 4,791 (1) Excludes assets held-for-sale as of May 31, 2022. See Note 18 — Acquisitions and Divestitures for additional information. REVENUES AND LONG-LIVED ASSETS BY GEOGRAPHIC AREA After allocation of revenues for Global Brand Divisions, Converse and Corporate to geographical areas based on the location where the sales originated, revenues by geographical area are essentially the same as reported above for the NIKE Brand operating segments with the exception of the United States. Revenues derived in the United States were $22,007 million, $18,749 million and $17,363 million for the fiscal years ended May 31, 2023, 2022 and 2021, respectively. The Company's largest concentrations of long-lived assets primarily consist of the Company's corporate headquarters, retail locations and distribution facilities in the United States and China, as well as distribution facilities in Belgium. Long-lived assets attributable to operations in these countries, which consist of property, plant and equipment, net and operating lease ROU assets, net, were as follows: MAY 31, (Dollars in millions) 2023 2022 United States $ 5,129 $ 4,916 Belgium 702 646 China 559 538 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
May 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 16 — COMMITMENTS AND CONTINGENCIES As of May 31, 2023 and 2022, the Company had bank guarantees and letters of credit outstanding totaling $588 million and $289 million, respectively, issued primarily for real estate agreements, self-insurance programs, other general business obligations and legal matters. In connection with various contracts and agreements, the Company provides routine indemnification relating to the enforceability of intellectual property rights, coverage for legal issues that arise and other items where the Company is acting as the guarantor. Currently, the Company has several such agreements in place. However, based on the Company's historical experience and the estimated probability of future loss, the Company has determined the fair value of such indemnification is not material to the Company's financial position or results of operations. In the ordinary course of business, the Company is subject to various legal proceedings, claims and government investigations relating to its business, products and actions of its employees and representatives, including contractual and employment relationships, product liability, antitrust, customs, tax, intellectual property and other matters. The outcome of these legal matters is inherently uncertain, and the Company cannot predict the eventual outcome of currently pending matters, the timing of their ultimate resolution or the eventual losses, fines, penalties or consequences relating to those matters. When a loss related to a legal proceeding or claim is probable and reasonably estimable, the Company accrues its best estimate for the ultimate resolution of the matter. If one or more legal matters were to be resolved against the Company in a reporting period for amounts above management's expectations, the Company's financial position, operating results and cash flows for that reporting period could be materially adversely affected. In the opinion of management, based on its current knowledge and after consultation with counsel, the Company does not believe any currently pending legal matters will have a material adverse impact on the Company's results of operations, financial position or cash flows, except as described below. BELGIAN CUSTOMS CLAIM The Company has received claims for certain years from the Belgian Customs Authorities for alleged underpaid duties related to products imported beginning in fiscal 2018. The Company disputes these claims and has engaged in the appellate process. The Company has issued bank guarantees in order to appeal the claims. At this time, the Company is unable to estimate the range of loss and cannot predict the final outcome as it could take several years to reach a resolution on this matter. If this matter is ultimately resolved against the Company, the amounts owed, including fines, penalties and other consequences relating to the matter, could have a material adverse effect on the Company's results of operations, financial position and cash flows. |
Leases
Leases | 12 Months Ended |
May 31, 2023 | |
Leases [Abstract] | |
Leases | NOTE 17 — LEASES Lease expense is recognized in Cost of sales or Operating overhead expense within the Consolidated Statements of Income, based on the underlying nature of the leased asset. For the fiscal years ended May 31, 2023, 2022 and 2021, lease expense primarily consisted of operating lease costs of $585 million, $593 million and $589 million, respectively. Lease expense also consisted of $403 million, $366 million and $347 million for fiscal years ended May 31, 2023, 2022 and 2021, respectively, primarily related to variable lease costs, which includes an immaterial amount of short-term lease costs. As of and for the fiscal years ended May 31, 2023 and 2022 and 2021, finance leases were not a material component of the Company's lease portfolio. The undiscounted cash flows for future maturities of the Company's operating lease liabilities and the reconciliation to the Operating lease liabilities recognized in the Company's Consolidated Balance Sheets are as follows: (Dollars in millions) AS OF MAY 31, 2023 (1) Fiscal 2024 $ 506 Fiscal 2025 562 Fiscal 2026 490 Fiscal 2027 436 Fiscal 2028 369 Thereafter 1,225 Total undiscounted future cash flows related to lease payments $ 3,588 Less interest 377 Present value of lease liabilities $ 3,211 (1) Excludes $278 million as of May 31, 2023, of future operating lease payments for lease agreements signed but not yet commenced. The following table includes supplemental information used to calculate the present value of Operating lease liabilities: AS OF MAY 31, 2023 2022 Weighted-average remaining lease term (in years) 7.5 7.8 Weighted-average discount rate 2.5 % 2.3 % The following table includes supplemental cash and non-cash information related to operating leases: YEAR ENDED MAY 31, (Dollars in millions) 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 575 $ 589 $ 583 Operating lease right-of-use assets obtained in exchange for new operating lease liabilities $ 602 $ 537 $ 489 |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
May 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | NOTE 18 — ACQUISITIONS AND DIVESTITURES ACQUISITIONS During fiscal 2023, 2022 and 2021, the Company made multiple acquisitions focused on gaining new capabilities to fuel its Consumer Direct Acceleration strategy, serving consumers personally at a global scale. The impact of acquisitions, individually and in aggregate, was not considered material to the Company's Consolidated Financial Statements. DIVESTITURES During the fourth quarter of fiscal 2022, the Company entered into separate definitive agreements to sell its entities in Argentina and Uruguay as well as its entity in Chile to third-party distributors. The sale of the Company's entity in Chile to a third-party distributor was completed during the first quarter of fiscal 2023. The impacts from the transaction were not material to the Company's Consolidated Financial Statements. The sale of the Company's entities in Argentina and Uruguay to a third-party distributor was completed during the second quarter of fiscal 2023 and the net loss on the sale of these entities totaled approximately $550 million. This loss included $389 million, recognized primarily in fiscal 2020, largely due to the anticipated release of the cumulative foreign currency translation losses. The remaining loss recognized in fiscal 2023 was due to the devaluation of local currency and cash equivalents included in the transferred assets. Upon completion of the sale, the foreign currency translation losses recorded in Accumulated other comprehensive income (loss) were reclassified to Net income within Other (income) expense, net, on the Company's Consolidated Statements of Comprehensive Income along with the allowance for previously recognized losses recorded in Accrued liabilities. The net loss was classified within Corporate. The net cash proceeds received are reflected within Other investing activities on the Company's Consolidated Statements of Cash Flows. The related assets and liabilities of these entities within the Company's APLA operating segment were classified as held-for-sale on the Consolidated Balance Sheets within Prepaid expenses and other currents and Accrued liabilities, respectively, until the transactions closed. As of May 31, 2022, held-for-sale assets were $182 million and held-for-sale liabilities were $58 million. OTHER DIVESTITURES |
Restructuring
Restructuring | 12 Months Ended |
May 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | NOTE 19 — RESTRUCTURING In fiscal 2021, the Company substantially completed a series of leadership and operating model changes to streamline and speed up the strategic execution of the Consumer Direct Acceleration. For the fiscal year ended May 31, 2021 , the Company recognized employee termination costs of $214 million and $35 million within Operating overhead expense and Cost of sales, respectively, and made cash payments of $212 million. Additionally, the related stock-based compensation expense recorded within Operating overhead expense and Cost of sales was $41 million and $4 million, respectively. These costs were classified within Corporate. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
May 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - Valuation and Qualifying Accounts | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS (Dollars in millions) BALANCE AT CHARGED TO CHARGED (1) WRITE-OFFS, BALANCE Sales returns reserve For the fiscal year ended May 31, 2021 $ 682 $ 2,617 $ 41 $ (2,745) $ 595 For the fiscal year ended May 31, 2022 595 2,573 (31) (2,612) 525 For the fiscal year ended May 31, 2023 525 3,344 (11) (3,309) 549 (1) Amounts included in this column primarily relate to foreign currency translation. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
May 31, 2023 | |
Accounting Policies [Abstract] | |
Basis Of Consolidation | BASIS OF CONSOLIDATIONThe Consolidated Financial Statements include the accounts of NIKE, Inc. and its subsidiaries (the "Company" or "NIKE"). All significant intercompany transactions and balances have been eliminated. |
Revenue Recognition | REVENUE RECOGNITION Revenue transactions associated with the sale of NIKE Brand footwear, apparel and equipment, as well as Converse products, comprise a single performance obligation, which consists of the sale of products to customers either through wholesale or direct to consumer channels. The Company satisfies the performance obligation and records revenues when transfer of control to the customer has occurred, based on the terms of sale. A customer is considered to have control once they are able to direct the use and receive substantially all of the benefits of the product. Control is transferred to wholesale customers upon shipment or upon receipt depending on the country of the sale and the agreement with the customer. Control transfers to retail store customers at the time of sale and to substantially all digital commerce customers upon shipment. The transaction price is determined based upon the invoiced sales price, less anticipated sales returns, discounts and miscellaneous claims from customers. Payment terms for wholesale transactions depend on the country of sale or agreement with the customer and payment is generally required within 90 days or less of shipment to or receipt by the wholesale customer. Payment is due at the time of sale for retail store and digital commerce transactions. Consideration for trademark licensing contracts is earned through sales-based or usage-based royalty arrangements, and the associated revenues are recognized over the license period. Taxes assessed by governmental authorities that are both imposed on and concurrent with a specific revenue-producing transaction, and are collected by the Company from a customer, are excluded from Revenues and Cost of sales in the Consolidated Statements of Income. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as fulfillment costs and are included in Cost of sales when the related revenues are recognized. SALES-RELATED RESERVES Consideration promised in the Company's contracts with customers is variable due to anticipated reductions, such as sales returns, discounts and miscellaneous claims from customers. The Company estimates the most likely amount it will be entitled to receive and records an anticipated reduction against Revenues, with an offsetting increase to Accrued liabilities at the time revenues are recognized. The estimated cost of inventory for product returns is recorded in Prepaid expenses and other current assets on the Consolidated Balance Sheets. The provision for anticipated sales returns consists of both contractual return rights and discretionary authorized returns. Provisions for post-invoice sales discounts consist of both contractual programs and discretionary discounts that are expected to be granted at a later date. Estimates of discretionary authorized returns, discounts and claims are based on (1) historical rates, (2) specific identification of outstanding returns not yet received from customers and outstanding discounts and claims and (3) estimated returns, discounts and claims expected but not yet finalized with customers. Actual returns, discounts and claims in any future period are inherently uncertain and thus may differ from estimates recorded. If actual or expected future returns, discounts or claims are significantly greater or lower than the reserves established, a reduction or increase to net Revenues is recorded in the period in which such determination is made. |
Cost Of Sales | COST OF SALES Cost of sales consists primarily of inventory costs, as well as warehousing costs (including the cost of warehouse labor), third-party royalties, certain foreign currency hedge gains and losses and product design costs. Shipping and handling costs are expensed as incurred and included in Cost of sales. |
Demand Creation Expense | DEMAND CREATION EXPENSE Demand creation expense consists of advertising and promotion costs, including costs of endorsement contracts, complimentary products, television, digital and print advertising as well as media costs, brand events and retail brand presentation. Advertising production costs are expensed the first time an advertisement is run. Advertising media costs are expensed when the advertisement appears. Costs related to brand events are expensed when the event occurs. Costs related to retail brand presentation are expensed when the presentation is complete and delivered. A significant amount of the Company's promotional expenses result from payments under endorsement contracts. In general, endorsement payments are expensed on a straight-line basis over the term of the contract. However, certain contracts contain elements that may be accounted for differently based upon the facts and circumstances of each individual contract. Prepayments made under contracts are included in Prepaid expenses and other current assets or Deferred income taxes and other assets depending on the period to which the prepayment applies. Certain contracts provide for contingent payments to endorsers based upon specific achievements in their sport (e.g., winning a championship). The Company records Demand creation expense for these amounts when the endorser achieves the specific goal. Certain contracts provide for variable payments based upon endorsers maintaining a level of performance in their sport over an extended period of time (e.g., maintaining a specified ranking in a sport for a year). When the Company determines payments are probable, the amounts are reported in Demand creation expense ratably over the contract period based on the Company's best estimate of the endorser's performance. In these instances, to the extent actual payments to the endorser differ from the Company's estimate due to changes in the endorser's performance, adjustments to Demand creation expense may be recorded in a future period. Certain contracts provide for royalty payments to endorsers based upon a predetermined percent of sales of particular products, which the Company records in Cost of sales as the related sales occur. For contracts containing minimum guaranteed royalty payments, the Company records the amount of any guaranteed payment in excess of that earned through sales of product within Demand creation expense. Through cooperative advertising programs, the Company reimburses its wholesale customers for certain costs of advertising the Company's products. To the extent the Company receives a distinct good or service in exchange for consideration paid to the customer that does not exceed the fair value of that good or service, the amounts reimbursed are recorded in Demand creation expense. |
Operating Overhead Expense | OPERATING OVERHEAD EXPENSE Operating overhead expense consists primarily of wage and benefit-related expenses, research and development costs, bad debt expense as well as other administrative expenses such as rent, depreciation and amortization, professional services, certain technology investments, meetings and travel. |
Cash and Equivalents | CASH AND EQUIVALENTS Cash and equivalents represent cash and short-term, highly liquid investments, that are both readily convertible to known amounts of cash and so near their maturity they present insignificant risk of changes in value because of changes in interest rates, with maturities three months or less at the date of purchase. |
Short-Term Investments | SHORT-TERM INVESTMENTS Short-term investments consist of highly liquid investments with maturities over three months at the date of purchase. At May 31, 2023 and 2022, Short-term investments consisted of available-for-sale debt securities, which are recorded at fair value with unrealized gains and losses reported, net of tax, in Accumulated other comprehensive income (loss), unless unrealized losses are determined to be unrecoverable. Realized gains and losses on the sale of securities are determined by specific identification. The Company considers all available-for-sale debt securities, including those with maturity dates beyond 12 months, as available to support current operational liquidity needs and, therefore, classifies all securities with maturity dates beyond three months at the date of purchase as current assets within Short-term investments on the Consolidated Balance Sheets. |
Allowance for Uncollectible Accounts Receivable | ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS RECEIVABLE Accounts receivable, net |
Inventory Valuation | INVENTORY VALUATION Inventories, substantially all of which are finished goods, are stated at lower of cost and net realizable value and valued on either an average or a specific identification cost basis. In some instances, the Company ships products directly from its suppliers to the customer, with the related inventory and cost of sales recognized on a specific identification basis. Inventory costs primarily consist of product cost from the Company's suppliers, as well as inbound freight, import duties, taxes, insurance, logistics and other handling fees. |
Property, Plant and Equipment and Depreciation | PROPERTY, PLANT AND EQUIPMENT AND DEPRECIATION Property, plant and equipment are recorded at cost. Depreciation is determined on a straight-line basis for land improvements, buildings and leasehold improvements over 2 to 40 years and for machinery and equipment over 2 to 15 years. Depreciation and amortization of assets used in manufacturing, warehousing and product distribution are recorded in Cost of sales. Depreciation and amortization of all other assets are recorded in Operating overhead expense. |
Software Development Costs | SOFTWARE DEVELOPMENT COSTS Expenditures for major software purchases and software developed for internal use are capitalized and amortized over 2 to 12 years on a straight-line basis. The Company's policy provides for the capitalization of external direct costs associated with developing or obtaining internal use computer software. The Company also capitalizes certain payroll and payroll-related costs for employees who are directly associated with internal use computer software projects. The amount of capitalizable payroll costs with respect to these employees is limited to the time directly spent on such projects. Costs associated with preliminary project stage activities, training, maintenance and all other post-implementation stage activities are expensed as incurred. |
Computer Software to be Sold, Leased or Otherwise Marketed | Development costs of computer software to be sold, leased or otherwise marketed as an integral part of a product are subject to capitalization beginning when a product's technological feasibility has been established and ending when a product is available for general release to customers. In most instances, the Company's products are released soon after technological feasibility has been established; therefore, software development costs incurred subsequent to achievement of technological feasibility are usually not significant, and generally, most software development costs have been expensed as incurred. |
Impairment of Long-Lived Assets | IMPAIRMENT OF LONG-LIVED ASSETS The Company reviews the carrying value of long-lived assets or asset groups to be used in operations whenever events or changes in circumstances indicate the carrying amount of the assets might not be recoverable. Factors that would necessitate an impairment assessment include a significant adverse change in the extent or manner in which an asset is used, a significant adverse change in legal factors or the business climate that could affect the value of the asset or a significant decline in the observable market value of an asset, among others. If such facts indicate a potential impairment, the Company would assess the recoverability of an asset group by determining if the carrying value of the asset group exceeds the sum of the projected undiscounted cash flows expected to result from the use and eventual disposition of the assets over the remaining economic life of the primary asset in the asset group. If the recoverability test indicates that the carrying value of the asset group is not recoverable, the Company will estimate the fair value of the asset group using appropriate valuation methodologies, which would typically include an estimate of discounted cash flows. Any impairment would be measured as the difference between the asset group's carrying amount and its estimated fair value. |
Goodwill and Indefinite-Lived Intangible Assets | GOODWILL AND INDEFINITE-LIVED INTANGIBLE ASSETS The Company performs annual impairment tests on goodwill and intangible assets with indefinite lives in the fourth quarter of each fiscal year or when events occur or circumstances change that would, more likely than not, reduce the fair value of a reporting unit or an intangible asset with an indefinite life below its carrying value. For purposes of testing goodwill for impairment, the Company allocates goodwill across its reporting units, which are considered the Company's operating segments. For both goodwill and indefinite-lived intangible assets, which primarily consist of acquired trade names and trademarks, the Company may first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit or an intangible asset with an indefinite life is less than its carrying amount. If, after assessing the totality of events and circumstances, the Company determines it is more likely than not that the fair value of a reporting unit or indefinite-lived intangible asset is greater than its carrying amount, an impairment test is unnecessary. If an impairment test is necessary, the Company will estimate the fair value of the related reporting unit or indefinite-lived intangible asset. If the carrying value of a reporting unit or indefinite-lived intangible asset exceeds its fair value, the goodwill of that reporting unit or indefinite-lived intangible asset is determined to be impaired and the Company will record an impairment charge equal to the excess of the carrying value over the related fair value. There were no accumulated impairment losses as of May 31, 2023 and 2022. Additionally, the impact to Goodwill as a result of acquisitions and divestitures during fiscal 2023 and 2022, was not material. |
Operating Leases | OPERATING LEASES The Company primarily leases retail store space, certain distribution and warehouse facilities, office space, equipment and other non-real estate assets. The Company determines if an arrangement is a lease at inception and begins recording lease activity at the commencement date, which is generally the date in which the Company takes possession of or controls the physical use of the asset. Lease components are not separated from non-lease components for real estate leases within the Company's lease portfolio. Right-of-use ("ROU") assets and lease liabilities are recognized based on the present value of lease payments over the lease term with lease expense recognized on a straight-line basis. The Company's incremental borrowing rate is used to determine the present value of future lease payments unless the implicit rate is readily determinable. Lease agreements may contain rent escalation clauses, renewal or termination options, rent holidays or certain landlord incentives, including tenant improvement allowances. ROU assets include amounts for scheduled rent increases and are reduced by the amount of lease incentives. The lease term includes the non-cancelable period of the lease and options to extend or terminate the lease when it is reasonably certain the Company will exercise those options. The Company does not record leases with an initial term of 12 months or less on the Consolidated Balance Sheets and recognizes related lease payments in the Consolidated Statements of Income on a straight-line basis over the lease term. Certain lease agreements include variable lease payments, which are based on a percent of retail sales over specified levels or adjust periodically for inflation as a result of changes in a published index, primarily the Consumer Price Index, and are expensed as incurred. |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Company measures certain financial assets and liabilities at fair value on a recurring basis, including derivatives, equity securities and available-for-sale debt securities. 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 a three-level hierarchy that prioritizes fair value measurements based on the types of inputs used, as follows: • 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 or similar assets or liabilities in markets that are not active. • Level 3: Unobservable inputs with 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 a majority of 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 fair value of derivative contracts is determined using observable market inputs such as the daily market foreign currency rates, forward pricing curves, currency volatilities, currency correlations and interest rates and considers nonperformance risk of the Company and its counterparties. The Company's fair value measurement process includes comparing fair values to another independent pricing vendor to ensure appropriate fair values are recorded. |
Foreign Currency Translation and Foreign Currency Transactions | FOREIGN CURRENCY TRANSLATION AND FOREIGN CURRENCY TRANSACTIONS Adjustments resulting from translating foreign functional currency financial statements into U.S. Dollars are included in the foreign currency translation adjustment, a component of Accumulated other comprehensive income (loss). The Company's global subsidiaries have various monetary assets and liabilities, primarily receivables and payables, which are denominated in currencies other than their functional currency. These balance sheet items are subject to remeasurement, the impact of which is recorded in Other (income) expense, net, within the Consolidated Statements of Income. |
Accounting for Derivatives and Hedging Activities | ACCOUNTING FOR DERIVATIVES AND HEDGING ACTIVITIESThe Company uses derivative financial instruments to reduce its exposure to changes in foreign currency exchange rates and interest rates. All derivatives are recorded at fair value on the Consolidated Balance Sheets and changes in the fair value of derivative financial instruments are either recognized in Accumulated other comprehensive income (loss), Long-term debt or Net income depending on the nature of the underlying exposure, whether the derivative is formally designated as a hedge and, if designated, the extent to which the hedge is effective. The Company classifies the cash flows at settlement from derivatives in the same category as the cash flows from the related hedged items. For undesignated hedges and designated cash flow hedges, this is primarily within the Cash provided by operations component of the Consolidated Statements of Cash Flows. For designated net investment hedges, this is within the Cash provided by investing activities component of the Consolidated Statements of Cash Flows. For the Company's fair value hedges, which are interest rate swaps used to mitigate the change in fair value of its fixed-rate debt attributable to changes in interest rates, the related cash flows from periodic interest payments are reflected within the Cash provided by operations component of the Consolidated Statements of Cash Flows. |
Stock-Based Compensation | STOCK-BASED COMPENSATION The Company accounts for stock-based compensation by estimating the fair value, net of estimated forfeitures, of equity awards and recognizing the related expense as Cost of sales or Operating overhead expense, as applicable, in the Consolidated Statements of Income on a straight-line basis over the vesting period. Substantially all awards vest ratably over four years of continued employment, with stock options expiring 10 years from the date of grant. Performance-based restricted stock units vest based on the Company's achievement of certain performance criteria throughout the three-year performance period and continued employment through the vesting date. The fair value of options, stock appreciation rights and employees' purchase rights under the employee stock purchase plans ("ESPPs") is determined using the Black-Scholes option pricing model. The fair value of restricted stock and time-vesting restricted stock units is established by the market price on the date of grant. The fair value of performance-based restricted stock units is estimated as of the grant date using a Monte Carlo simulation. |
Income Taxes | INCOME TAXES The Company accounts for income taxes using the asset and liability method. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. The Company records a valuation allowance to reduce deferred tax assets to the amount management believes is more likely than not to be realized. Realization of deferred tax assets is dependent on future taxable earnings and is therefore uncertain. At least quarterly, the Company assesses taxable income in prior carryback periods, the scheduled reversal of deferred tax liabilities, projected future taxable income and available tax planning strategies. The Company uses forecasts of taxable income and considers foreign tax credit utilization in making this assessment of realization, which are inherently uncertain and can result in significant variation between estimated and actual results. To the extent the Company believes that recovery is not likely, a valuation allowance is established against the net deferred tax asset, which increases the Company's income tax expense in the period when such determination is made. The Company recognizes a tax benefit from uncertain tax positions in the financial statements only when it is more likely than not the position will be sustained upon examination by relevant tax authorities. The Company recognizes interest and penalties related to income tax matters in Income tax expense. |
Earnings Per Share | EARNINGS PER SHARE Basic earnings per common share is calculated by dividing Net income by the weighted average number of common shares outstanding during the year. Diluted earnings per common share is calculated by adjusting weighted average outstanding shares, assuming conversion of all potentially dilutive stock options and awards. |
Management Estimates | MANAGEMENT ESTIMATESThe preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates, including estimates relating to assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Additionally, the macroeconomic environment could remain volatile as the risk exists that worsening macroeconomic conditions could have a material, adverse impact on future revenue growth as well as overall profitability. |
Hedging Derivatives | CASH FLOW HEDGES All changes in fair value of derivatives designated as cash flow hedge instruments are recorded in Accumulated other comprehensive income (loss) until Net income is affected by the variability of cash flows of the hedged transaction. Effective hedge results are classified in the Consolidated Statements of Income in the same manner as the underlying exposure. When it is no longer probable the forecasted hedged transaction will occur in the initially identified time period, hedge accounting is discontinued and the Company accounts for the associated derivative as an undesignated instrument as discussed below. Additionally, the gains and losses associated with derivatives no longer designated as cash flow hedge instruments in Accumulated other comprehensive income (loss) are recognized immediately in Other (income) expense, net, if it is probable the forecasted hedged transaction will not occur by the end of the initially identified time period or within an additional two-month period thereafter. In rare circumstances, the additional period of time may exceed two months due to extenuating circumstances related to the nature of the forecasted transaction that are outside the control or influence of the Company. The purpose of the Company's foreign exchange risk management program is to lessen both the positive and negative effects of currency fluctuations on the Company's consolidated results of operations, financial position and cash flows. Foreign currency exposures the Company may elect to hedge in this manner include product costs, non-functional currency denominated revenues, intercompany revenues, demand creation expenses, investments in U.S. Dollar denominated available-for-sale debt securities and certain other intercompany transactions. Product cost foreign currency exposures are primarily generated through non-functional currency denominated product purchases. NIKE entities primarily purchase product 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 product to NIKE entities in their respective functional currencies. NTC sales to a NIKE entity with a different functional currency result in a foreign currency |
Undesignated Derivative Instruments | UNDESIGNATED DERIVATIVE INSTRUMENTSThe Company may elect to enter into foreign exchange forwards to mitigate the change in fair value of specific assets and liabilities on the Consolidated Balance Sheets. These undesignated instruments are recorded at fair value as a derivative asset or liability on the Consolidated Balance Sheets with their corresponding change in fair value recognized in Other (income) expense, net, together with the remeasurement gain or loss from the hedged balance sheet position. |
Recently Issued Accounting Standards | RECENTLY ISSUED ACCOUNTING STANDARDSIn September 2022, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") ASU 2022-04, Liabilities — Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations, which enhances transparency surrounding the use of supplier finance programs. The new guidance requires qualitative and quantitative disclosure sufficient to enable users of the financial statements to understand the nature, activity during the period, changes from period to period and potential magnitude of such programs. The amendments are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal periods, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. The Company will adopt the required guidance in the first quarter of fiscal 2024 and is currently evaluating the ASU to determine its impact on the Company's disclosures |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
May 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment, net included the following: MAY 31, (Dollars in millions) 2023 2022 Land and improvements $ 326 $ 330 Buildings 3,293 3,170 Machinery and equipment 3,083 2,870 Internal-use software 1,612 1,616 Leasehold improvements 1,876 1,712 Construction in process 525 399 Total property, plant and equipment, gross 10,715 10,097 Less accumulated depreciation 5,634 5,306 TOTAL PROPERTY, PLANT AND EQUIPMENT, NET $ 5,081 $ 4,791 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
May 31, 2023 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities included the following: MAY 31, (Dollars in millions) 2023 2022 Compensation and benefits, excluding taxes $ 1,737 $ 1,297 Sales-related reserves 994 1,015 Endorsement compensation 552 496 Dividends payable 529 485 Allowance for expected loss on sale (1) — 397 Other 1,911 2,530 Total Accrued Liabilities $ 5,723 $ 6,220 (1) Refer to Note 18 — Acquisitions and Divestitures for additional information. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
May 31, 2023 | |
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 May 31, 2023 and 2022, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement. Refer to Note 1 — Summary of Significant Accounting Policies for additional detail regarding the Company's fair value measurement methodology. MAY 31, 2023 (Dollars in millions) ASSETS AT FAIR VALUE CASH AND EQUIVALENTS SHORT-TERM INVESTMENTS Cash $ 1,767 $ 1,767 $ — Level 1: U.S. Treasury securities 2,655 — 2,655 Level 2: Commercial paper and bonds 543 15 528 Money market funds 5,157 5,157 — Time deposits 507 502 5 U.S. Agency securities 46 — 46 Total Level 2 6,253 5,674 579 TOTAL $ 10,675 $ 7,441 $ 3,234 MAY 31, 2022 (Dollars in millions) ASSETS AT FAIR VALUE CASH AND EQUIVALENTS SHORT-TERM INVESTMENTS Cash $ 839 $ 839 $ — Level 1: U.S. Treasury securities 3,801 8 3,793 Level 2: Commercial paper and bonds 660 37 623 Money market funds 6,458 6,458 — Time deposits 1,237 1,232 5 U.S. Agency securities 2 — 2 Total Level 2 8,357 7,727 630 TOTAL $ 12,997 $ 8,574 $ 4,423 |
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 and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement: MAY 31, 2023 DERIVATIVE ASSETS DERIVATIVE LIABILITIES (Dollars in millions) ASSETS AT FAIR VALUE OTHER CURRENT ASSETS OTHER LONG-TERM ASSETS LIABILITIES AT FAIR VALUE ACCRUED LIABILITIES OTHER LONG-TERM LIABILITIES Level 2: Foreign exchange forwards and options (1) $ 557 $ 493 $ 64 $ 180 $ 128 $ 52 (1) If the foreign exchange derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $178 million as of May 31, 2023. As of that date, the Company received $36 million of cash collateral from various counterparties related to foreign exchange derivative instruments. No amount of collateral was posted on the derivative liability balance as of May 31, 2023. MAY 31, 2022 DERIVATIVE ASSETS DERIVATIVE LIABILITIES (Dollars in millions) ASSETS AT FAIR VALUE OTHER CURRENT ASSETS OTHER LONG-TERM ASSETS LIABILITIES AT FAIR VALUE ACCRUED LIABILITIES OTHER LONG-TERM LIABILITIES Level 2: Foreign exchange forwards and options and embedded derivatives (1) $ 880 $ 674 $ 206 $ 77 $ 66 $ 11 (1) If the foreign exchange derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $76 million as of May 31, 2022. As of that date, the Company had received $486 million of cash collateral from various counterparties related to foreign exchange derivative instruments. No amount of collateral was posted on the Company's derivative liability balance as of May 31, 2022. The following tables present the fair values of derivative instruments included within the Consolidated Balance Sheets: DERIVATIVE ASSETS BALANCE SHEET LOCATION MAY 31, (Dollars in millions) 2023 2022 Derivatives formally designated as hedging instruments: Foreign exchange forwards and options Prepaid expenses and other current assets $ 480 $ 639 Foreign exchange forwards and options Deferred income taxes and other assets 64 206 Total derivatives formally designated as hedging instruments 544 845 Derivatives not designated as hedging instruments: Foreign exchange forwards and options and embedded derivatives Prepaid expenses and other current assets 13 35 Total derivatives not designated as hedging instruments 13 35 TOTAL DERIVATIVE ASSETS $ 557 $ 880 DERIVATIVE LIABILITIES BALANCE SHEET LOCATION MAY 31, (Dollars in millions) 2023 2022 Derivatives formally designated as hedging instruments: Foreign exchange forwards and options Accrued liabilities $ 93 $ 37 Foreign exchange forwards and options Deferred income taxes and other liabilities 52 11 Total derivatives formally designated as hedging instruments 145 48 Derivatives not designated as hedging instruments: Foreign exchange forwards and options and embedded derivatives Accrued liabilities 35 29 Total derivatives not designated as hedging instruments 35 29 TOTAL DERIVATIVE LIABILITIES $ 180 $ 77 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
May 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt, net of unamortized premiums, discounts and debt issuance costs, comprises the following: BOOK VALUE OUTSTANDING Scheduled Maturity (Dollars in millions) ORIGINAL PRINCIPAL INTEREST RATE INTEREST PAYMENTS 2023 2022 Corporate Term Debt: (1)(2) May 1, 2023 $ 500 2.25 % Semi-Annually $ — $ 500 March 27, 2025 1,000 2.40 % Semi-Annually 998 996 November 1, 2026 1,000 2.38 % Semi-Annually 997 997 March 27, 2027 1,000 2.75 % Semi-Annually 997 996 March 27, 2030 1,500 2.85 % Semi-Annually 1,492 1,491 March 27, 2040 1,000 3.25 % Semi-Annually 987 986 May 1, 2043 500 3.63 % Semi-Annually 496 496 November 1, 2045 1,000 3.88 % Semi-Annually 986 985 November 1, 2046 500 3.38 % Semi-Annually 492 492 March 27, 2050 1,500 3.38 % Semi-Annually 1,482 1,481 Total 8,927 9,420 Less Current Portion of Long-Term Debt — 500 TOTAL LONG-TERM DEBT $ 8,927 $ 8,920 (1) These senior unsecured obligations rank equally with the Company's other unsecured and unsubordinated indebtedness. (2) The bonds are redeemable at the Company's option at a price equal to the greater of (i) 100% of the aggregate principal amount of the notes to be redeemed or (ii) the sum of the present values of the remaining scheduled payments, plus in each case, accrued and unpaid interest. However, the bonds also feature a par call provision, which allows for the bonds to be redeemed at a price equal to 100% of the aggregate principal amount of the notes being redeemed, plus accrued and unpaid interest on or after the Par Call Date, as defined in the respective notes. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
May 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Income before income taxes is as follows: YEAR ENDED MAY 31, (Dollars in millions) 2023 2022 2021 Income before income taxes: United States $ 4,663 $ 6,020 $ 5,723 Foreign 1,538 631 938 TOTAL INCOME BEFORE INCOME TAXES $ 6,201 $ 6,651 $ 6,661 |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes is as follows: YEAR ENDED MAY 31, (Dollars in millions) 2023 2022 2021 Current: United States Federal $ 430 $ 231 $ 328 State 184 98 134 Foreign 634 926 857 Total Current 1,248 1,255 1,319 Deferred: United States Federal (162) (522) (371) State (25) (16) (34) Foreign 70 (112) 20 Total Deferred (117) (650) (385) TOTAL INCOME TAX EXPENSE $ 1,131 $ 605 $ 934 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation from the U.S. statutory federal income tax rate to the effective income tax rate is as follows: YEAR ENDED MAY 31, 2023 2022 2021 Federal income tax rate 21.0 % 21.0 % 21.0 % State taxes, net of federal benefit 1.5 % 1.4 % 1.3 % Foreign earnings 1.7 % -1.8 % 0.2 % Subpart F deferred tax benefit 0.0 % -4.7 % 0.0 % Foreign-derived intangible income benefit -6.1 % -4.1 % -3.7 % Excess tax benefits from stock-based compensation -1.1 % -4.9 % -4.5 % Income tax audits and contingency reserves 1.0 % 1.5 % 1.5 % U.S. research and development tax credit -1.2 % -1.0 % -0.9 % Other, net 1.4 % 1.7 % -0.9 % EFFECTIVE INCOME TAX RATE 18.2 % 9.1 % 14.0 % |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities comprise the following as of: MAY 31, (Dollars in millions) 2023 2022 Deferred tax assets: Inventories (1) $ 79 $ 136 Sales return reserves (1) 89 109 Deferred compensation (1) 321 313 Stock-based compensation 261 195 Reserves and accrued liabilities (1) 144 145 Operating lease liabilities 511 508 Intangibles 255 275 Capitalized research and development expenditures 548 353 Net operating loss carry-forwards 15 8 Subpart F deferred tax 374 313 Foreign tax credit carry-forward — 103 Other (1) 183 148 Total deferred tax assets 2,780 2,606 Valuation allowance (22) (19) Total deferred tax assets after valuation allowance 2,758 2,587 Deferred tax liabilities: Foreign withholding tax on undistributed earnings of foreign subsidiaries (186) (146) Property, plant and equipment (1) (276) (247) Right-of-use assets (441) (437) Other (1) (56) (92) Total deferred tax liabilities (959) (922) NET DEFERRED TAX ASSET (2) $ 1,799 $ 1,665 (1) The above amounts exclude deferred taxes held-for-sale as of May 31, 2022. See Note 18 — Acquisitions and Divestitures for additional information. (2) Of the total $1,799 million net deferred tax asset for the period ended May 31, 2023, $2,026 million was included within Deferred income taxes and other assets and $(227) million was included within Deferred income taxes and other liabilities on the Consolidated Balance Sheets. Of the total $1,665 million net deferred tax asset for the period ended May 31, 2022, $1,891 million was included within Deferred income taxes and other assets and $(226) million was included within Deferred income taxes and other liabilities on the Consolidated Balance Sheets. |
Unrecognized Tax Benefits Reconciliation | The following is a reconciliation of the changes in the gross balance of unrecognized tax benefits as of: MAY 31, (Dollars in millions) 2023 2022 2021 Unrecognized tax benefits, beginning of the period $ 848 $ 896 $ 771 Gross increases related to prior period tax positions 95 71 77 Gross decreases related to prior period tax positions (17) (145) (22) Gross increases related to current period tax positions 50 62 59 Settlements (18) (17) (5) Lapse of statute of limitations (7) (10) (6) Changes due to currency translation (15) (9) 22 UNRECOGNIZED TAX BENEFITS, END OF THE PERIOD $ 936 $ 848 $ 896 |
Common Stock and Stock-Based _2
Common Stock and Stock-Based Compensation (Tables) | 12 Months Ended |
May 31, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The following table summarizes the Company's total stock-based compensation expense recognized in Cost of sales or Operating overhead expense, as applicable: YEAR ENDED MAY 31, (Dollars in millions) 2023 2022 2021 Stock options (1) $ 311 $ 297 $ 323 ESPPs 72 60 63 Restricted stock and restricted stock units (1)(2) 372 281 225 TOTAL STOCK-BASED COMPENSATION EXPENSE $ 755 $ 638 $ 611 (1) Expense for stock options includes the expense associated with stock appreciation rights. Accelerated stock option expense is primarily recorded for employees meeting certain retirement eligibility requirements and was $64 million, $57 million and $67 million for the fiscal years ended May 31, 2023, 2022 and 2021, respectively. During fiscal 2021, an immaterial amount of accelerated stock option and restricted stock unit expense was also recorded for certain employees impacted by the Company's organizational realignment. For more information, see Note 19 — Restructuring. (2) For the fiscal years ended May 31, 2023 and 2022, expense for restricted stock units includes an immaterial amount of expense for PSUs. |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The weighted average assumptions used to estimate these fair values were as follows: YEAR ENDED MAY 31, 2023 2022 2021 Dividend yield 0.9 % 0.8 % 0.9 % Expected volatility 27.1 % 24.9 % 27.3 % Weighted average expected life (in years) 5.8 5.8 6.0 Risk-free interest rate 3.3 % 0.9 % 0.4 % |
Schedule of Share-based Compensation, Stock Options, Activity | The following summarizes the stock option transactions under the plan discussed above: SHARES (1) WEIGHTED AVERAGE OPTION PRICE (In millions) Options outstanding as of May 31, 2022 68.0 $ 88.66 Exercised (7.5) 57.11 Forfeited (1.5) 122.93 Granted 12.0 107.44 Options outstanding as of May 31, 2023 71.0 $ 94.40 (1) Includes stock appreciation rights transactions. |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following summarizes the restricted stock and restricted stock units transactions under the plan discussed above: SHARES (1) WEIGHTED AVERAGE GRANT DATE (In millions) Nonvested as of May 31, 2022 6.7 $ 130.88 Vested (2.2) 114.85 Forfeited (0.7) 131.10 Granted 4.5 115.56 Nonvested as of May 31, 2023 8.3 $ 126.97 (1) Includes an immaterial amount of PSU transactions |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
May 31, 2023 | |
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 computations of diluted earnings per common share excluded restricted stock, restricted stock units and options, including shares under ESPPs, to purchase an estimated additional 31.7 million, 9.4 million and 11.3 million shares of common stock outstanding for the fiscal years ended May 31, 2023, 2022 and 2021, respectively, because the awards were assumed to be anti-dilutive. YEAR ENDED MAY 31, (In millions, except per share data) 2023 2022 2021 Net income available to common stockholders $ 5,070 $ 6,046 $ 5,727 Determination of shares: Weighted average common shares outstanding 1,551.6 1,578.8 1,573.0 Assumed conversion of dilutive stock options and awards 18.2 32.0 36.4 DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 1,569.8 1,610.8 1,609.4 Earnings per common share: Basic $ 3.27 $ 3.83 $ 3.64 Diluted $ 3.23 $ 3.75 $ 3.56 |
Risk Management and Derivativ_2
Risk Management and Derivatives (Tables) | 12 Months Ended |
May 31, 2023 | |
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 and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement: MAY 31, 2023 DERIVATIVE ASSETS DERIVATIVE LIABILITIES (Dollars in millions) ASSETS AT FAIR VALUE OTHER CURRENT ASSETS OTHER LONG-TERM ASSETS LIABILITIES AT FAIR VALUE ACCRUED LIABILITIES OTHER LONG-TERM LIABILITIES Level 2: Foreign exchange forwards and options (1) $ 557 $ 493 $ 64 $ 180 $ 128 $ 52 (1) If the foreign exchange derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $178 million as of May 31, 2023. As of that date, the Company received $36 million of cash collateral from various counterparties related to foreign exchange derivative instruments. No amount of collateral was posted on the derivative liability balance as of May 31, 2023. MAY 31, 2022 DERIVATIVE ASSETS DERIVATIVE LIABILITIES (Dollars in millions) ASSETS AT FAIR VALUE OTHER CURRENT ASSETS OTHER LONG-TERM ASSETS LIABILITIES AT FAIR VALUE ACCRUED LIABILITIES OTHER LONG-TERM LIABILITIES Level 2: Foreign exchange forwards and options and embedded derivatives (1) $ 880 $ 674 $ 206 $ 77 $ 66 $ 11 (1) If the foreign exchange derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $76 million as of May 31, 2022. As of that date, the Company had received $486 million of cash collateral from various counterparties related to foreign exchange derivative instruments. No amount of collateral was posted on the Company's derivative liability balance as of May 31, 2022. The following tables present the fair values of derivative instruments included within the Consolidated Balance Sheets: DERIVATIVE ASSETS BALANCE SHEET LOCATION MAY 31, (Dollars in millions) 2023 2022 Derivatives formally designated as hedging instruments: Foreign exchange forwards and options Prepaid expenses and other current assets $ 480 $ 639 Foreign exchange forwards and options Deferred income taxes and other assets 64 206 Total derivatives formally designated as hedging instruments 544 845 Derivatives not designated as hedging instruments: Foreign exchange forwards and options and embedded derivatives Prepaid expenses and other current assets 13 35 Total derivatives not designated as hedging instruments 13 35 TOTAL DERIVATIVE ASSETS $ 557 $ 880 DERIVATIVE LIABILITIES BALANCE SHEET LOCATION MAY 31, (Dollars in millions) 2023 2022 Derivatives formally designated as hedging instruments: Foreign exchange forwards and options Accrued liabilities $ 93 $ 37 Foreign exchange forwards and options Deferred income taxes and other liabilities 52 11 Total derivatives formally designated as hedging instruments 145 48 Derivatives not designated as hedging instruments: Foreign exchange forwards and options and embedded derivatives Accrued liabilities 35 29 Total derivatives not designated as hedging instruments 35 29 TOTAL DERIVATIVE LIABILITIES $ 180 $ 77 |
Schedule of Derivative Instruments, Gain (Loss) In Statement of Income | The following table presents the amounts in the Consolidated Statements of Income in which the effects of cash flow hedges are recorded and the effects of cash flow hedge activity on these line items for the fiscal years ended May 31, 2023, 2022 and 2021: YEAR ENDED MAY 31, 2023 2022 2021 (Dollars in millions) TOTAL AMOUNT OF TOTAL AMOUNT OF TOTAL AMOUNT OF Revenues $ 51,217 $ 26 $ 46,710 $ (82) $ 44,538 $ 45 Cost of sales 28,925 581 25,231 (23) 24,576 51 Demand creation expense 4,060 (5) 3,850 1 3,114 3 Other (income) expense, net (280) 338 (181) 130 14 (47) Interest expense (income), net (6) (8) 205 (7) 262 (7) |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following tables present the amounts affecting the Consolidated Statements of Income for the years ended May 31, 2023, 2022 and 2021: (Dollars in millions) AMOUNT OF GAIN (LOSS) (1) AMOUNT OF GAIN (LOSS) (1) YEAR ENDED MAY 31, LOCATION OF GAIN (LOSS) YEAR ENDED MAY 31, 2023 2022 2021 2023 2022 2021 Derivatives designated as cash flow hedges: Foreign exchange forwards and options $ 16 $ (39) $ (61) Revenues $ 26 $ (82) $ 45 Foreign exchange forwards and options 305 889 (563) Cost of sales 581 (23) 51 Foreign exchange forwards and options (1) (6) 5 Demand creation expense (5) 1 3 Foreign exchange forwards and options 207 492 (163) Other (income) expense, net 338 130 (47) Interest rate swaps (2) — — — Interest expense (income), net (8) (7) (7) Total designated cash flow hedges $ 527 $ 1,336 $ (782) $ 932 $ 19 $ 45 (1) For the fiscal years ended May 31, 2023, 2022, and 2021, the amounts recorded in Other (income) expense, net as a result of the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial. (2) Gains and losses associated with terminated interest rate swaps, which were previously designated as cash flow hedges and recorded in Accumulated other comprehensive income (loss), will be released through Interest expense (income), net over the term of the issued debt. AMOUNT OF GAIN (LOSS) RECOGNIZED LOCATION OF GAIN (LOSS) YEAR ENDED MAY 31, (Dollars in millions) 2023 2022 2021 Derivatives designated as hedging instruments: Foreign exchange forwards and options and embedded derivatives $ 28 $ 38 $ (167) Other (income) expense, net |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
May 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | The changes in Accumulated other comprehensive income (loss), net of tax, were as follows: (Dollars in millions) FOREIGN CURRENCY TRANSLATION ADJUSTMENT (1) CASH FLOW HEDGES NET INVESTMENT HEDGES (1) OTHER TOTAL Balance at May 31, 2022 $ (520) $ 779 $ 115 $ (56) $ 318 Other comprehensive income (loss): Other comprehensive gains (losses) before reclassifications (2) (91) 487 — (20) 376 Reclassifications to net income of previously deferred (gains) losses (3) 358 (835) — 14 (463) Total other comprehensive income (loss) 267 (348) — (6) (87) Balance at May 31, 2023 $ (253) $ 431 $ 115 $ (62) $ 231 (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, $(40) million, $0 million, $6 million and $(34) million, respectively. (3) Net of tax (benefit) expense of $(16) million, $97 million, $0 million, $(5) million and $76 million, respectively. (Dollars in millions) FOREIGN CURRENCY TRANSLATION ADJUSTMENT (1) CASH FLOW HEDGES NET INVESTMENT HEDGES (1) OTHER TOTAL Balance at May 31, 2021 $ 2 $ (435) $ 115 $ (62) $ (380) Other comprehensive income (loss): Other comprehensive gains (losses) before reclassifications (2) (522) 1,222 — 28 728 Reclassifications to net income of previously deferred (gains) losses (3) — (8) — (22) (30) Total other comprehensive income (loss) (522) 1,214 — 6 698 Balance at May 31, 2022 $ (520) $ 779 $ 115 $ (56) $ 318 (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, $(114) million, $0 million, $(9) million and $(123) million, respectively. (3) Net of tax (benefit) expense of $0 million, $11 million, $0 million, $9 million and $20 million, respectively. |
Reclassification Out of Accumulated Other Comprehensive Income | The following table summarizes the reclassifications from Accumulated other comprehensive income (loss) to the Consolidated Statements of Income: AMOUNT OF GAIN (LOSS) LOCATION OF GAIN (LOSS) YEAR ENDED MAY 31, (Dollars in millions) 2023 2022 Gains (losses) on foreign currency translation adjustment $ (374) $ — Other (income) expense, net Total before tax (374) — Tax (expense) benefit 16 — Gain (loss) net of tax (358) — Gains (losses) on cash flow hedges: Foreign exchange forwards and options 26 (82) Revenues Foreign exchange forwards and options 581 (23) Cost of sales Foreign exchange forwards and options (5) 1 Demand creation expense Foreign exchange forwards and options 338 130 Other (income) expense, net Interest rate swaps (8) (7) Interest expense (income), net Total before tax 932 19 Tax (expense) benefit (97) (11) Gain (loss) net of tax 835 8 Gains (losses) on other (19) 31 Other (income) expense, net Total before tax (19) 31 Tax (expense) benefit 5 (9) Gain (loss) net of tax (14) 22 Total net gain (loss) reclassified for the period $ 463 $ 30 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
May 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present the Company's Revenues disaggregated by reportable operating segment, major product line and distribution channel: YEAR ENDED MAY 31, 2023 (Dollars in millions) NORTH AMERICA EUROPE, MIDDLE EAST & AFRICA GREATER CHINA ASIA PACIFIC & LATIN AMERICA (1) GLOBAL BRAND DIVISIONS TOTAL NIKE BRAND CONVERSE CORPORATE TOTAL NIKE, INC. Revenues by: Footwear $ 14,897 $ 8,260 $ 5,435 $ 4,543 $ — $ 33,135 $ 2,155 $ — $ 35,290 Apparel 5,947 4,566 1,666 1,664 — 13,843 90 — 13,933 Equipment 764 592 147 224 — 1,727 28 — 1,755 Other — — — — 58 58 154 27 239 TOTAL REVENUES $ 21,608 $ 13,418 $ 7,248 $ 6,431 $ 58 $ 48,763 $ 2,427 $ 27 $ 51,217 Revenues by: Sales to Wholesale Customers $ 11,273 $ 8,522 $ 3,866 $ 3,736 $ — $ 27,397 $ 1,299 $ — $ 28,696 Sales through Direct to Consumer 10,335 4,896 3,382 2,695 — 21,308 974 — 22,282 Other — — — — 58 58 154 27 239 TOTAL REVENUES $ 21,608 $ 13,418 $ 7,248 $ 6,431 $ 58 $ 48,763 $ 2,427 $ 27 $ 51,217 (1) Refer to Note 18 — Acquisitions and Divestitures for additional information on the transition of the Company's NIKE Brand businesses in its CASA territory to third-party distributors. YEAR ENDED MAY 31, 2022 (Dollars in millions) NORTH AMERICA EUROPE, MIDDLE EAST & AFRICA GREATER CHINA ASIA PACIFIC & LATIN AMERICA GLOBAL BRAND DIVISIONS TOTAL NIKE BRAND CONVERSE CORPORATE TOTAL NIKE, INC. Revenues by: Footwear $ 12,228 $ 7,388 $ 5,416 $ 4,111 $ — $ 29,143 $ 2,094 $ — $ 31,237 Apparel 5,492 4,527 1,938 1,610 — 13,567 103 — 13,670 Equipment 633 564 193 234 — 1,624 26 — 1,650 Other — — — — 102 102 123 (72) 153 TOTAL REVENUES $ 18,353 $ 12,479 $ 7,547 $ 5,955 $ 102 $ 44,436 $ 2,346 $ (72) $ 46,710 Revenues by: Sales to Wholesale Customers $ 9,621 $ 8,377 $ 4,081 $ 3,529 $ — $ 25,608 $ 1,292 $ — $ 26,900 Sales through Direct to Consumer 8,732 4,102 3,466 2,426 — 18,726 931 — 19,657 Other — — — — 102 102 123 (72) 153 TOTAL REVENUES $ 18,353 $ 12,479 $ 7,547 $ 5,955 $ 102 $ 44,436 $ 2,346 $ (72) $ 46,710 YEAR ENDED MAY 31, 2021 (Dollars in millions) NORTH AMERICA EUROPE, MIDDLE EAST & AFRICA GREATER CHINA ASIA PACIFIC & LATIN AMERICA (1) GLOBAL BRAND DIVISIONS TOTAL NIKE BRAND CONVERSE CORPORATE TOTAL NIKE, INC. Revenues by: Footwear $ 11,644 $ 6,970 $ 5,748 $ 3,659 $ — $ 28,021 $ 1,986 $ — $ 30,007 Apparel 5,028 3,996 2,347 1,494 — 12,865 104 — 12,969 Equipment 507 490 195 190 — 1,382 29 — 1,411 Other — — — — 25 25 86 40 151 TOTAL REVENUES $ 17,179 $ 11,456 $ 8,290 $ 5,343 $ 25 $ 42,293 $ 2,205 $ 40 $ 44,538 Revenues by: Sales to Wholesale Customers $ 10,186 $ 7,812 $ 4,513 $ 3,387 $ — $ 25,898 $ 1,353 $ — $ 27,251 Sales through Direct to Consumer 6,993 3,644 3,777 1,956 — 16,370 766 — 17,136 Other — — — — 25 25 86 40 151 TOTAL REVENUES $ 17,179 $ 11,456 $ 8,290 $ 5,343 $ 25 $ 42,293 $ 2,205 $ 40 $ 44,538 |
Operating Segments and Relate_2
Operating Segments and Related Information (Tables) | 12 Months Ended |
May 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | YEAR ENDED MAY 31, (Dollars in millions) 2023 2022 2021 REVENUES North America $ 21,608 $ 18,353 $ 17,179 Europe, Middle East & Africa 13,418 12,479 11,456 Greater China 7,248 7,547 8,290 Asia Pacific & Latin America 6,431 5,955 5,343 Global Brand Divisions 58 102 25 Total NIKE Brand 48,763 44,436 42,293 Converse 2,427 2,346 2,205 Corporate 27 (72) 40 TOTAL NIKE, INC. REVENUES $ 51,217 $ 46,710 $ 44,538 EARNINGS BEFORE INTEREST AND TAXES North America $ 5,454 $ 5,114 $ 5,089 Europe, Middle East & Africa 3,531 3,293 2,435 Greater China 2,283 2,365 3,243 Asia Pacific & Latin America 1,932 1,896 1,530 Global Brand Divisions (4,841) (4,262) (3,656) Converse 676 669 543 Corporate (2,840) (2,219) (2,261) Interest expense (income), net (6) 205 262 TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES $ 6,201 $ 6,651 $ 6,661 ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT North America $ 283 $ 146 $ 98 Europe, Middle East & Africa 215 197 153 Greater China 56 78 94 Asia Pacific & Latin America 64 56 54 Global Brand Divisions 271 222 278 Total NIKE Brand 889 699 677 Converse 7 9 7 Corporate 140 103 107 TOTAL ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT $ 1,036 $ 811 $ 791 DEPRECIATION North America $ 128 $ 124 $ 130 Europe, Middle East & Africa 120 134 136 Greater China 54 41 46 Asia Pacific & Latin America 42 42 43 Global Brand Divisions 211 220 222 Total NIKE Brand 555 561 577 Converse 17 22 26 Corporate 131 134 141 TOTAL DEPRECIATION $ 703 $ 717 $ 744 |
Reconciliation of Assets from Segment to Consolidated | AS OF MAY 31, (Dollars in millions) 2023 2022 ACCOUNTS RECEIVABLE, NET North America $ 1,653 $ 1,850 Europe, Middle East & Africa 1,197 1,351 Greater China 162 406 Asia Pacific & Latin America (1) 700 664 Global Brand Divisions 96 113 Total NIKE Brand 3,808 4,384 Converse 235 230 Corporate 88 53 TOTAL ACCOUNTS RECEIVABLE, NET $ 4,131 $ 4,667 INVENTORIES North America $ 3,806 $ 4,098 Europe, Middle East & Africa 2,167 1,887 Greater China 973 1,044 Asia Pacific & Latin America (1) 894 686 Global Brand Divisions 232 197 Total NIKE Brand 8,072 7,912 Converse 305 279 Corporate 77 229 TOTAL INVENTORIES $ 8,454 $ 8,420 PROPERTY, PLANT AND EQUIPMENT, NET North America $ 794 $ 639 Europe, Middle East & Africa 1,009 920 Greater China 292 303 Asia Pacific & Latin America (1) 279 274 Global Brand Divisions 840 789 Total NIKE Brand 3,214 2,925 Converse 38 49 Corporate 1,829 1,817 TOTAL PROPERTY, PLANT AND EQUIPMENT, NET $ 5,081 $ 4,791 (1) Excludes assets held-for-sale as of May 31, 2022. See Note 18 — Acquisitions and Divestitures for additional information. |
Long-lived Assets by Geographic Areas | Long-lived assets attributable to operations in these countries, which consist of property, plant and equipment, net and operating lease ROU assets, net, were as follows: MAY 31, (Dollars in millions) 2023 2022 United States $ 5,129 $ 4,916 Belgium 702 646 China 559 538 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
May 31, 2023 | |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Maturity | The undiscounted cash flows for future maturities of the Company's operating lease liabilities and the reconciliation to the Operating lease liabilities recognized in the Company's Consolidated Balance Sheets are as follows: (Dollars in millions) AS OF MAY 31, 2023 (1) Fiscal 2024 $ 506 Fiscal 2025 562 Fiscal 2026 490 Fiscal 2027 436 Fiscal 2028 369 Thereafter 1,225 Total undiscounted future cash flows related to lease payments $ 3,588 Less interest 377 Present value of lease liabilities $ 3,211 |
Lease, Cost | The following table includes supplemental information used to calculate the present value of Operating lease liabilities: AS OF MAY 31, 2023 2022 Weighted-average remaining lease term (in years) 7.5 7.8 Weighted-average discount rate 2.5 % 2.3 % The following table includes supplemental cash and non-cash information related to operating leases: YEAR ENDED MAY 31, (Dollars in millions) 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 575 $ 589 $ 583 Operating lease right-of-use assets obtained in exchange for new operating lease liabilities $ 602 $ 537 $ 489 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Significant Accounting Policies [Line Items] | |||
Total advertising and promotion expenses | $ 4,060,000,000 | $ 3,850,000,000 | $ 3,114,000,000 |
Prepaid advertising and promotion expenses | 755,000,000 | 773,000,000 | |
Allowance for uncollectible accounts receivable | 35,000,000 | 34,000,000 | |
Goodwill, impaired, accumulated impairment loss | $ 0 | 0 | |
Performance-based Restricted Stock Units (PSUs) | |||
Significant Accounting Policies [Line Items] | |||
Stock options vesting period (in years) | 3 years | ||
Stock Incentive Plan | |||
Significant Accounting Policies [Line Items] | |||
Stock options vesting period (in years) | 4 years | ||
Stock options expiration from the date of grant (in years) | 10 years | ||
Building | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, minimum useful life (in years) | 2 years | ||
Building | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, minimum useful life (in years) | 40 years | ||
Leasehold improvements | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, minimum useful life (in years) | 2 years | ||
Leasehold improvements | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, minimum useful life (in years) | 40 years | ||
Land Improvements | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, minimum useful life (in years) | 2 years | ||
Land Improvements | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, minimum useful life (in years) | 40 years | ||
Machinery and Equipment | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, minimum useful life (in years) | 2 years | ||
Machinery and Equipment | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, minimum useful life (in years) | 15 years | ||
Software and Software Development Costs | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, minimum useful life (in years) | 2 years | ||
Software and Software Development Costs | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, minimum useful life (in years) | 12 years | ||
Prepaid expenses and other current assets | |||
Significant Accounting Policies [Line Items] | |||
Prepaid advertising and promotion expenses | $ 372,000,000 | 329,000,000 | |
Deferred income taxes and other assets | |||
Significant Accounting Policies [Line Items] | |||
Prepaid advertising and promotion expenses | $ 383,000,000 | $ 444,000,000 |
Property Plant and Equipment (D
Property Plant and Equipment (Detail) - USD ($) $ in Millions | May 31, 2023 | May 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | $ 10,715 | $ 10,097 |
Less accumulated depreciation | 5,634 | 5,306 |
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET | 5,081 | 4,791 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | 326 | 330 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | 3,293 | 3,170 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | 3,083 | 2,870 |
Internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | 1,612 | 1,616 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | 1,876 | 1,712 |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | $ 525 | $ 399 |
Accrued Liabilities (Detail)
Accrued Liabilities (Detail) - USD ($) $ in Millions | May 31, 2023 | May 31, 2022 |
Accrued Liabilities, Current [Abstract] | ||
Other comprehensive income (loss) | $ 1,737 | $ 1,297 |
Sales-related reserves | 994 | 1,015 |
Endorsement compensation | 552 | 496 |
Dividends payable | 529 | 485 |
Allowance for expected loss on sale | 0 | 397 |
Other | 1,911 | 2,530 |
Total Accrued Liabilities | $ 5,723 | $ 6,220 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | May 31, 2023 | May 31, 2022 |
Assets, Fair Value Disclosure [Abstract] | ||
SHORT-TERM INVESTMENTS | $ 3,234 | $ 4,423 |
Fair Value, Measurements, Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash | 1,767 | 839 |
ASSETS AT FAIR VALUE | 10,675 | 12,997 |
CASH AND EQUIVALENTS | 7,441 | 8,574 |
SHORT-TERM INVESTMENTS | 3,234 | 4,423 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | U.S. Treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
ASSETS AT FAIR VALUE | 2,655 | 3,801 |
CASH AND EQUIVALENTS | 0 | 8 |
SHORT-TERM INVESTMENTS | 2,655 | 3,793 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
ASSETS AT FAIR VALUE | 6,253 | 8,357 |
CASH AND EQUIVALENTS | 5,674 | 7,727 |
SHORT-TERM INVESTMENTS | 579 | 630 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Commercial paper and bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
ASSETS AT FAIR VALUE | 543 | 660 |
CASH AND EQUIVALENTS | 15 | 37 |
SHORT-TERM INVESTMENTS | 528 | 623 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Money market funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
ASSETS AT FAIR VALUE | 5,157 | 6,458 |
CASH AND EQUIVALENTS | 5,157 | 6,458 |
SHORT-TERM INVESTMENTS | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Time deposits | ||
Assets, Fair Value Disclosure [Abstract] | ||
ASSETS AT FAIR VALUE | 507 | 1,237 |
CASH AND EQUIVALENTS | 502 | 1,232 |
SHORT-TERM INVESTMENTS | 5 | 5 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | U.S. Agency securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
ASSETS AT FAIR VALUE | 46 | 2 |
CASH AND EQUIVALENTS | 0 | 0 |
SHORT-TERM INVESTMENTS | $ 46 | $ 2 |
Fair Value Measurements - Deriv
Fair Value Measurements - Derivative Assets and Liabilities at Fair Value (Detail) - USD ($) | May 31, 2023 | May 31, 2022 |
Cash and Cash Equivalents | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of collateral | $ 36,000,000 | |
Foreign exchange forwards and options | Cash and Cash Equivalents | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of collateral | 36,000,000 | $ 486,000,000 |
Fair value of derivative liability collateral | 0 | 0 |
Fair Value, Measurements, Recurring | ||
Derivatives, Fair Value [Line Items] | ||
Reduction in derivative liabilities if netted | 178,000,000 | 76,000,000 |
Reduction in derivative assets if netted | 178,000,000 | 76,000,000 |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Foreign exchange forwards and options | ||
Derivatives, Fair Value [Line Items] | ||
ASSETS AT FAIR VALUE | 557,000,000 | |
OTHER CURRENT ASSETS | 493,000,000 | |
OTHER LONG-TERM ASSETS | 64,000,000 | |
LIABILITIES AT FAIR VALUE | 180,000,000 | |
ACCRUED LIABILITIES | 128,000,000 | |
OTHER LONG-TERM LIABILITIES | $ 52,000,000 | |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Foreign exchange forwards and options and embedded derivatives | ||
Derivatives, Fair Value [Line Items] | ||
ASSETS AT FAIR VALUE | 880,000,000 | |
OTHER CURRENT ASSETS | 674,000,000 | |
OTHER LONG-TERM ASSETS | 206,000,000 | |
LIABILITIES AT FAIR VALUE | 77,000,000 | |
ACCRUED LIABILITIES | 66,000,000 | |
OTHER LONG-TERM LIABILITIES | $ 11,000,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available-for-sale securities with maturity dates within one year from purchase date | $ 2,563 | ||
Available-for-sale securities with maturity dates over one year and less than five years from purchase date | 671 | ||
Interest expense (income), net | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest income related to cash and equivalents and short-term investments | $ 297 | $ 94 | $ 34 |
Short-Term Borrowings and Cre_2
Short-Term Borrowings and Credit Lines - Additional Information (Detail) - USD ($) | Mar. 10, 2023 | Mar. 11, 2022 | May 31, 2023 | May 31, 2022 | Aug. 16, 2019 |
Short-term Debt [Line Items] | |||||
Notes payable | $ 6,000,000 | $ 10,000,000 | |||
Committed Credit Facility, Maturing March 8, 2024 | Revolving Credit Facility | |||||
Short-term Debt [Line Items] | |||||
Notes payable | 0 | 0 | |||
Line of Credit | Committed Credit Facility, Maturing March 11, 2027 | Revolving Credit Facility | |||||
Short-term Debt [Line Items] | |||||
Borrowing capacity | $ 2,000,000,000 | $ 2,000,000,000 | |||
Extension term | 2 years | ||||
Revolving credit facility, fee | 0.04% | ||||
Debt instrument, term | 5 years | ||||
Line of credit facility, amount outstanding | $ 0 | $ 0 | |||
Line of Credit | Committed Credit Facility, Maturing March 11, 2027 | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | |||||
Short-term Debt [Line Items] | |||||
Basis spread on variable rate, above LIBOR | 0.60% | ||||
Line of Credit | Committed Credit Facility, Maturing March 11, 2027 | Revolving Credit Facility, Option To Increase Upon Lender Approval | |||||
Short-term Debt [Line Items] | |||||
Borrowing capacity | $ 3,000,000,000 | ||||
Line of Credit | Committed Credit Facility, Maturing March 8, 2024 | Revolving Credit Facility | |||||
Short-term Debt [Line Items] | |||||
Borrowing capacity | $ 1,000,000,000 | $ 1,000,000,000 | |||
Extension term | 364 days | ||||
Revolving credit facility, fee | 0.02% | ||||
Debt instrument, term | 364 days | 364 days | |||
Line of Credit | Committed Credit Facility, Maturing March 8, 2024 | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | |||||
Short-term Debt [Line Items] | |||||
Basis spread on variable rate, above LIBOR | 0.60% | ||||
Line of Credit | Committed Credit Facility, Maturing March 8, 2024 | Revolving Credit Facility, Option To Increase Upon Lender Approval | |||||
Short-term Debt [Line Items] | |||||
Borrowing capacity | $ 1,500,000,000 |
Long-Term Debt - Net of Unamort
Long-Term Debt - Net of Unamortized Premiums, Discounts and Debt Issuance Costs (Detail) - USD ($) | 12 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Debt Instrument [Line Items] | ||
Total | $ 8,927,000,000 | $ 9,420,000,000 |
Less Current Portion of Long-Term Debt | 0 | 500,000,000 |
TOTAL LONG-TERM DEBT | $ 8,927,000,000 | 8,920,000,000 |
Corporate Bond Payables | ||
Debt Instrument [Line Items] | ||
Percent of aggregate principal amount of the notes to be redeemed | 100% | |
Corporate Bond Payables | 2.25% Corporate bond, payable May 1, 2023 | ||
Debt Instrument [Line Items] | ||
ORIGINAL PRINCIPAL | $ 500,000,000 | |
INTEREST RATE | 2.25% | |
INTEREST PAYMENTS | Semi-Annually | |
Total | $ 0 | 500,000,000 |
Corporate Bond Payables | 2.40% Corporate bond, payable March 27, 2025 | ||
Debt Instrument [Line Items] | ||
ORIGINAL PRINCIPAL | $ 1,000,000,000 | |
INTEREST RATE | 2.40% | |
INTEREST PAYMENTS | Semi-Annually | |
Total | $ 998,000,000 | 996,000,000 |
Corporate Bond Payables | 2.38% Corporate bond, payable November 1, 2026 | ||
Debt Instrument [Line Items] | ||
ORIGINAL PRINCIPAL | $ 1,000,000,000 | |
INTEREST RATE | 2.38% | |
INTEREST PAYMENTS | Semi-Annually | |
Total | $ 997,000,000 | 997,000,000 |
Corporate Bond Payables | 2.75% Corporate bond, payable March 27, 2027 | ||
Debt Instrument [Line Items] | ||
ORIGINAL PRINCIPAL | $ 1,000,000,000 | |
INTEREST RATE | 2.75% | |
INTEREST PAYMENTS | Semi-Annually | |
Total | $ 997,000,000 | 996,000,000 |
Corporate Bond Payables | 2.85% Corporate bond, payable March 27, 2030 | ||
Debt Instrument [Line Items] | ||
ORIGINAL PRINCIPAL | $ 1,500,000,000 | |
INTEREST RATE | 2.85% | |
INTEREST PAYMENTS | Semi-Annually | |
Total | $ 1,492,000,000 | 1,491,000,000 |
Corporate Bond Payables | 3.25% Corporate bond, payable March 27, 2040 | ||
Debt Instrument [Line Items] | ||
ORIGINAL PRINCIPAL | $ 1,000,000,000 | |
INTEREST RATE | 3.25% | |
INTEREST PAYMENTS | Semi-Annually | |
Total | $ 987,000,000 | 986,000,000 |
Corporate Bond Payables | 3.63% Corporate bond, payable May 1, 2043 | ||
Debt Instrument [Line Items] | ||
ORIGINAL PRINCIPAL | $ 500,000,000 | |
INTEREST RATE | 3.63% | |
INTEREST PAYMENTS | Semi-Annually | |
Total | $ 496,000,000 | 496,000,000 |
Corporate Bond Payables | 3.88% Corporate bond, payable November 1, 2045 | ||
Debt Instrument [Line Items] | ||
ORIGINAL PRINCIPAL | $ 1,000,000,000 | |
INTEREST RATE | 3.88% | |
INTEREST PAYMENTS | Semi-Annually | |
Total | $ 986,000,000 | 985,000,000 |
Corporate Bond Payables | 3.38% Corporate bond, payable November 1, 2046 | ||
Debt Instrument [Line Items] | ||
ORIGINAL PRINCIPAL | $ 500,000,000 | |
INTEREST RATE | 3.38% | |
INTEREST PAYMENTS | Semi-Annually | |
Total | $ 492,000,000 | 492,000,000 |
Corporate Bond Payables | 3.38% Corporate bond, payable March 27, 2050 | ||
Debt Instrument [Line Items] | ||
ORIGINAL PRINCIPAL | $ 1,500,000,000 | |
INTEREST RATE | 3.38% | |
INTEREST PAYMENTS | Semi-Annually | |
Total | $ 1,482,000,000 | $ 1,481,000,000 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) $ in Millions | May 31, 2023 | May 31, 2022 |
Debt Instrument [Line Items] | ||
Maturity of long-term debt next fiscal year | $ 0 | |
Maturity of long-term debt in year two | 1,000 | |
Maturity of long-term debt in year three | 0 | |
Maturity of long-term debt in year four | 2,000 | |
Maturity of long-term debt in year five | 0 | |
Fair Value, Inputs, Level 2 | ||
Debt Instrument [Line Items] | ||
Fair value of long term debt | $ 7,889 | $ 8,933 |
Income Taxes - Income before In
Income Taxes - Income before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Income before income taxes: | |||
United States | $ 4,663 | $ 6,020 | $ 5,723 |
Foreign | 1,538 | 631 | 938 |
Income before income taxes | $ 6,201 | $ 6,651 | $ 6,661 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Current: | |||
Federal | $ 430 | $ 231 | $ 328 |
State | 184 | 98 | 134 |
Foreign | 634 | 926 | 857 |
Total Current | 1,248 | 1,255 | 1,319 |
Deferred: | |||
Federal | (162) | (522) | (371) |
State | (25) | (16) | (34) |
Foreign | 70 | (112) | 20 |
Total Deferred | (117) | (650) | (385) |
TOTAL INCOME TAX EXPENSE | $ 1,131 | $ 605 | $ 934 |
Income Taxes - Reconciliation f
Income Taxes - Reconciliation from United States Statutory Federal Income Tax Rate to Effective Income Tax Rate (Detail) | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax rate | 21% | 21% | 21% |
State taxes, net of federal benefit | 1.50% | 1.40% | 1.30% |
Foreign earnings | 1.70% | (1.80%) | 0.20% |
Subpart F deferred tax benefit | 0% | (4.70%) | 0% |
Foreign-derived intangible income benefit | (6.10%) | (4.10%) | (3.70%) |
Excess tax benefits from stock-based compensation | (1.10%) | (4.90%) | (4.50%) |
Income tax audits and contingency reserves | 1% | 1.50% | 1.50% |
U.S. research and development tax credit | (1.20%) | (1.00%) | (0.90%) |
Other, net | 1.40% | 1.70% | (0.90%) |
EFFECTIVE INCOME TAX RATE | 18.20% | 9.10% | 14% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | May 31, 2023 | May 31, 2022 |
Deferred tax assets: | ||
Inventories | $ 79 | $ 136 |
Sales return reserves | 89 | 109 |
Deferred compensation | 321 | 313 |
Stock-based compensation | 261 | 195 |
Reserves and accrued liabilities | 144 | 145 |
Operating lease liabilities | 511 | 508 |
Intangibles | 255 | 275 |
Capitalized research and development expenditures | 548 | 353 |
Net operating loss carry-forwards | 15 | 8 |
Subpart F deferred tax | 374 | 313 |
Foreign tax credit carry-forward | 0 | 103 |
Other | 183 | 148 |
Total deferred tax assets | 2,780 | 2,606 |
Valuation allowance | (22) | (19) |
Total deferred tax assets after valuation allowance | 2,758 | 2,587 |
Deferred tax liabilities: | ||
Foreign withholding tax on undistributed earnings of foreign subsidiaries | (186) | (146) |
Property, plant and equipment | (276) | (247) |
Right-of-use assets | (441) | (437) |
Other | (56) | (92) |
Total deferred tax liabilities | (959) | (922) |
NET DEFERRED TAX ASSET | 1,799 | 1,665 |
Deferred Income Taxes And Other Assets, Noncurrent | ||
Deferred tax liabilities: | ||
NET DEFERRED TAX ASSET | 2,026 | 1,891 |
Deferred Income Taxes And Other Liabilities, Noncurrent | ||
Deferred tax liabilities: | ||
Deferred tax liabilities, net | $ (227) | $ (226) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Changes in Gross Balance of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning of the period | $ 848 | $ 896 | $ 771 |
Gross increases related to prior period tax positions | 95 | 71 | 77 |
Gross decreases related to prior period tax positions | (17) | (145) | (22) |
Gross increases related to current period tax positions | 50 | 62 | 59 |
Settlements | (18) | (17) | (5) |
Lapse of statute of limitations | (7) | (10) | (6) |
Decrease due to currency translation | (15) | (9) | |
Increase due to currency translation | 22 | ||
UNRECOGNIZED TAX BENEFITS, END OF THE PERIOD | $ 936 | $ 848 | $ 896 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
Income Tax Contingency [Line Items] | ||||
Subpart F deferred tax benefit | 0% | (4.70%) | 0% | |
Income tax audits and contingency reserves | 1% | 1.50% | 1.50% | |
Other, net | 1.40% | 1.70% | (0.90%) | |
Total gross unrecognized tax benefits, excluding related interest and penalties | $ 936 | $ 848 | $ 896 | $ 771 |
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 | 651 | |||
Increase (decrease) in liability for payment of interest and penalties | 20 | 45 | 45 | |
Accrued interest and penalties related to uncertain tax positions (excluding federal benefit) | 268 | 248 | ||
Estimated decrease in total gross unrecognized tax benefits as a result of resolutions of global tax examinations and expiration of applicable statutes of limitations | 50 | |||
Decrease in income tax expense related to tax holiday | $ 263 | $ 221 | $ 238 | |
Decrease in income tax expense related to tax holiday per diluted share, (in dollars per share) | $ 0.17 | $ 0.14 | $ 0.15 | |
Valuation allowance increase (decrease) related to tax benefits of certain subsidiaries with operating losses | $ 3 | $ 7 | $ (14) | |
Available domestic and foreign loss carry-forwards | 61 | |||
Deferred income taxes and other liabilities | ||||
Income Tax Contingency [Line Items] | ||||
Long-term income taxes payable | $ 373 | $ 535 |
Income Taxes - Available Domest
Income Taxes - Available Domestic and Foreign Loss Carryforwards (Detail) $ in Millions | May 31, 2023 USD ($) |
Income Tax Disclosure [Abstract] | |
Available domestic and foreign loss carry-forwards | $ 61 |
Operating loss carry-forwards, subject to expiration between 2028 and 2043 | $ 33 |
Redeemable Preferred Stock - Ad
Redeemable Preferred Stock - Additional Information (Detail) - Non-marketable preferred stock $ / shares in Units, $ in Millions | 12 Months Ended |
May 31, 2023 USD ($) $ / shares | |
Temporary Equity [Line Items] | |
Redeemable preferred stock, par value (in dollars per share) | $ 1 |
Redeemable preferred stock, redeemable value (in dollars) | $ | $ 0.3 |
Redeemable preferred stock, dividends payable annually per share (in dollars per share) | $ 0.10 |
Common Stock and Stock-Based _3
Common Stock and Stock-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Millions | 12 Months Ended | ||
May 31, 2023 USD ($) $ / shares shares | May 31, 2022 USD ($) $ / shares shares | May 31, 2021 USD ($) $ / shares shares | |
Class A Convertible Common Stock | |||
Common Stock and Share Based Compensation [Line Items] | |||
Common stock, no par value (in dollars per share) | $ / shares | $ 0 | ||
Common stock, number of shares authorized (in shares) | 400,000,000 | ||
Common stock, Class A conversion ratio to Class B (in shares) | 1 | ||
Class B Common Stock | |||
Common Stock and Share Based Compensation [Line Items] | |||
Common stock, no par value (in dollars per share) | $ / shares | $ 0 | ||
Common stock, number of shares authorized (in shares) | 2,400,000,000 | ||
Class B Common Stock | ESPPs | |||
Common Stock and Share Based Compensation [Line Items] | |||
Employee stock purchase plans, payroll deductions | 10% | ||
Employee stock purchase plan offering period | 6 months | ||
Shares purchased, price as percentage of lower of the fair market value | 85% | ||
Purchase of shares by employee (in shares) | 3,000,000 | 2,000,000 | 2,500,000 |
Stock Incentive Plan | |||
Common Stock and Share Based Compensation [Line Items] | |||
Stock options vesting period (in years) | 4 years | ||
Stock options expiration from the date of grant (in years) | 10 years | ||
Options exercisable (in shares) | 44,700,000 | ||
Options exercisable (in dollars per share) | $ / shares | $ 79.95 | ||
Stock Incentive Plan | Stock options | |||
Common Stock and Share Based Compensation [Line Items] | |||
Unrecognized compensation costs from stock options, net of estimated forfeitures | $ | $ 425 | ||
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 6 months | ||
Stock Incentive Plan | Class B Common Stock | |||
Common Stock and Share Based Compensation [Line Items] | |||
Shares available for grant (in shares) | 798,000,000 | ||
Minimum term of market traded options for estimates of expected volatility (in years) | 1 year | ||
Aggregate intrinsic value for options outstanding | $ | $ 1,380 | ||
Aggregate intrinsic value for options exercisable | $ | 1,307 | ||
Total intrinsic value of options exercised | $ | $ 438 | $ 1,742 | $ 1,571 |
Weighted average remaining contractual life for options outstanding (in years) | 5 years 10 months 24 days | ||
Weighted average remaining contractual life for options exercisable (in years) | 4 years 6 months | ||
Stock Incentive Plan | Class B Common Stock | Stock options | |||
Common Stock and Share Based Compensation [Line Items] | |||
Weighted average fair value per share of the options granted (in dollars per share) | $ / shares | $ 31.31 | $ 37.53 | $ 26.75 |
Common Stock and Stock-Based _4
Common Stock and Stock-Based Compensation - Total Stock-Based Compensation Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Accelerated stock option expense | $ 64 | $ 57 | $ 67 |
Tax benefit related to stock-based compensation expense | 71 | 327 | 297 |
Class B Common Stock | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 755 | 638 | 611 |
Class B Common Stock | Stock options | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 311 | 297 | 323 |
Class B Common Stock | ESPPs | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 72 | 60 | 63 |
Class B Common Stock | Restricted stock and restricted stock units | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 372 | $ 281 | $ 225 |
Common Stock and Stock-Based _5
Common Stock and Stock-Based Compensation - Weighted Average Assumptions Used to Estimate Fair Values (Detail) - Stock options | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.90% | 0.80% | 0.90% |
Expected volatility | 27.10% | 24.90% | 27.30% |
Weighted average expected life (in years) | 5 years 9 months 18 days | 5 years 9 months 18 days | 6 years |
Risk-free interest rate | 3.30% | 0.90% | 0.40% |
Common Stock and Stock-Based _6
Common Stock and Stock-Based Compensation - Stock Option Transactions Under Plan (Detail) - Stock Incentive Plan shares in Millions | 12 Months Ended |
May 31, 2023 $ / shares shares | |
Options Outstanding - Shares | |
Beginning Balance (in shares) | shares | 68 |
Exercised (in shares) | shares | (7.5) |
Forfeited (in shares) | shares | (1.5) |
Granted (in shares) | shares | 12 |
Ending Balance (in shares) | shares | 71 |
Options exercisable (in shares) | shares | 44.7 |
Options Outstanding - Weighted-Average Option Price | |
Beginning Balance (in dollars per share) | $ / shares | $ 88.66 |
Exercised (in dollars per share) | $ / shares | 57.11 |
Forfeited (in dollars per share) | $ / shares | 122.93 |
Granted (in dollars per share) | $ / shares | 107.44 |
Ending Balance (in dollars per share) | $ / shares | 94.40 |
Options exercisable (in dollars per share) | $ / shares | $ 79.95 |
Common Stock and Stock-Based _7
Common Stock and Stock-Based Compensation - Restricted Stock and Restricted Stock Units (Details) - Restricted Stock And Restricted Stock Units - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
SHARES | |||
Nonvested Awards, beginning balance (in shares) | 6.7 | ||
Vested (in shares) | (2.2) | ||
Forfeited (in shares) | (0.7) | ||
Granted (in shares) | 4.5 | ||
Nonvested Awards, ending balance (in shares) | 8.3 | 6.7 | |
WEIGHTED AVERAGE GRANT DATE FAIR VALUE | |||
Nonvested awards, beginning balance (in dollars per share) | $ 130,880,000 | ||
Vested (in dollars per share) | 114,850,000 | ||
Forfeited (in dollars per share) | 131,100,000 | ||
Granted (in dollars per share) | 115,560,000 | $ 168.04 | $ 113.84 |
Nonvested awards, ending balance (in dollars per share) | $ 126.97 | $ 130,880,000 | |
Vested, fair value | $ 250 | $ 354 | $ 310 |
Unrecognized compensation costs from restricted stock, net of estimated forfeitures | $ 649 | ||
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 3 months 18 days |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive options not included in the computation of diluted earnings per share (in shares) | 31.7 | 9.4 | 11.3 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation from Basic Earnings Per Share to Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Earnings Per Share [Abstract] | |||
Net income available to common stockholders | $ 5,070 | $ 6,046 | $ 5,727 |
Determination of shares: | |||
Weighted average common shares outstanding | 1,551.6 | 1,578.8 | 1,573 |
Assumed conversion of dilutive stock options and awards | 18.2 | 32 | 36.4 |
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | 1,569.8 | 1,610.8 | 1,609.4 |
Earnings per common share: | |||
Basic (in dollars per share) | $ 3.27 | $ 3.83 | $ 3.64 |
Diluted (in dollars per share) | $ 3.23 | $ 3.75 | $ 3.56 |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Retirement Benefits [Abstract] | |||
401(k) employee savings plans, expenses | $ 136 | $ 126 | $ 110 |
Assets held in rabbi trust | 875 | 876 | |
Deferred compensation plan liabilities | 897 | 890 | |
Liability related to the unfunded pension plan | $ 29 | $ 30 |
Risk Management and Derivativ_3
Risk Management and Derivatives - FV of Derivative Instruments Included within Consolidated Balance Sheet (Detail) - USD ($) $ in Millions | May 31, 2023 | May 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
DERIVATIVE ASSETS | $ 557 | $ 880 |
DERIVATIVE LIABILITIES | 180 | 77 |
Derivatives formally designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
DERIVATIVE ASSETS | 544 | 845 |
DERIVATIVE LIABILITIES | 145 | 48 |
Derivatives formally designated as hedging instruments | Foreign exchange forwards and options | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
DERIVATIVE ASSETS | 480 | 639 |
Derivatives formally designated as hedging instruments | Foreign exchange forwards and options | Deferred income taxes and other assets | ||
Derivatives, Fair Value [Line Items] | ||
DERIVATIVE ASSETS | 64 | 206 |
Derivatives formally designated as hedging instruments | Foreign exchange forwards and options | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
DERIVATIVE LIABILITIES | 93 | 37 |
Derivatives formally designated as hedging instruments | Foreign exchange forwards and options | Deferred income taxes and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
DERIVATIVE LIABILITIES | 52 | 11 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
DERIVATIVE ASSETS | 13 | 35 |
DERIVATIVE LIABILITIES | 35 | 29 |
Derivatives not designated as hedging instruments | Foreign exchange forwards and options and embedded derivatives | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
DERIVATIVE ASSETS | 13 | 35 |
Derivatives not designated as hedging instruments | Foreign exchange forwards and options and embedded derivatives | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
DERIVATIVE LIABILITIES | $ 35 | $ 29 |
Risk Management and Derivativ_4
Risk Management and Derivatives - Effects Of Cash Flow Hedges in Statement of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Revenues | $ 51,217 | $ 46,710 | $ 44,538 |
Cost of sales | 28,925 | 25,231 | 24,576 |
Demand creation expense | 4,060 | 3,850 | 3,114 |
Other (income) expense, net | (280) | (181) | 14 |
Interest expense (income), net | (6) | 205 | 262 |
Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY | 932 | 19 | 45 |
Foreign exchange forwards and options | Revenues | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY | 26 | (82) | 45 |
Foreign exchange forwards and options | Cost of sales | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY | 581 | (23) | 51 |
Foreign exchange forwards and options | Demand creation expense | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY | (5) | 1 | 3 |
Foreign exchange forwards and options | Other (income) expense, net | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY | 338 | 130 | (47) |
Interest rate swaps | Interest expense (income), net | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY | $ (8) | $ (7) | $ (7) |
Risk Management and Derivativ_5
Risk Management and Derivatives - Amounts Affecting Consolidated Statements of Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Foreign exchange forwards and options and embedded derivatives | Derivatives not designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
AMOUNT OF GAIN (LOSS) RECOGNIZED IN INCOME ON DERIVATIVES | $ 28 | $ 38 | $ (167) |
Derivatives designated as cash flow hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
AMOUNT OF GAIN (LOSS) RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) ON DERIVATIVES | 527 | 1,336 | (782) |
AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME | 932 | 19 | 45 |
Derivatives designated as cash flow hedges | Foreign exchange forwards and options | Revenues | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
AMOUNT OF GAIN (LOSS) RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) ON DERIVATIVES | 16 | (39) | (61) |
AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME | 26 | (82) | 45 |
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 (LOSS) ON DERIVATIVES | 305 | 889 | (563) |
AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME | 581 | (23) | 51 |
Derivatives designated as cash flow hedges | Foreign exchange forwards and options | Demand creation expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
AMOUNT OF GAIN (LOSS) RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) ON DERIVATIVES | (1) | (6) | 5 |
AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME | (5) | 1 | 3 |
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 (LOSS) ON DERIVATIVES | 207 | 492 | (163) |
AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME | 338 | 130 | (47) |
Derivatives designated as cash flow hedges | Interest rate swaps | Interest expense (income), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
AMOUNT OF GAIN (LOSS) RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) ON DERIVATIVES | 0 | 0 | 0 |
AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME | $ (8) | $ (7) | $ (7) |
Risk Management and Derivativ_6
Risk Management and Derivatives - Additional Information (Detail) - USD ($) | 12 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Deferred net gain (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 | $ 419,000,000 | |
Maximum term over which the Company is hedging exposures to the variability of cash flows for its forecasted and recorded transactions (in months) | 27 months | |
Derivative, net liability position, aggregate fair value | $ 2,000,000 | |
Derivatives designated as cash flow hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Additional period for forecasted transaction expected to occur | 2 months | |
Percentage of anticipated exposures hedged (percent) | 100% | |
Foreign exchange forwards and options | Derivatives designated as net investment hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative assets (liabilities), at fair value, net | $ 0 | |
Minimum | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Minimum fair value of outstanding derivative above which the credit related contingent features require the derivative party to post collateral | $ 50,000,000 | |
Minimum | Derivatives designated as cash flow hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Typical time period that anticipated exposures are hedged against (in months) | 12 months | |
Maximum | Derivatives designated as cash flow hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Typical time period that anticipated exposures are hedged against (in months) | 24 months | |
Designated as Hedging Instrument | Derivatives designated as cash flow hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, notional amount | $ 18,200,000,000 | |
Derivatives not designated as hedging instruments | Not designated as derivative instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, notional amount | 4,700,000,000 | |
Cash and Cash Equivalents | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Cash collateral posted | 0 | |
Fair value of collateral | 36,000,000 | |
Cash and Cash Equivalents | Foreign exchange forwards and options | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair value of collateral | $ 36,000,000 | $ 486,000,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Changes in AOCI (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ 15,281 | $ 12,767 | $ 8,055 | |
Other comprehensive income (loss): | ||||
Other comprehensive gains (losses) before reclassifications | 376 | 728 | ||
Reclassifications to net income of previously deferred (gains) losses | (463) | (30) | ||
Total other comprehensive income (loss), net of tax | (87) | 698 | (324) | $ (324) |
Ending balance | 14,004 | 15,281 | 12,767 | 8,055 |
Other comprehensive income, before reclassification, tax benefit (expense) | (34) | (123) | ||
Reclassification from AOCI, current period, tax expense (benefit) | 76 | 20 | ||
TOTAL | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 318 | (380) | (56) | |
Other comprehensive income (loss): | ||||
Total other comprehensive income (loss), net of tax | (87) | 698 | (324) | |
Ending balance | 231 | 318 | (380) | $ (56) |
FOREIGN CURRENCY TRANSLATION ADJUSTMENT | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (520) | 2 | ||
Other comprehensive income (loss): | ||||
Other comprehensive gains (losses) before reclassifications | (91) | (522) | ||
Reclassifications to net income of previously deferred (gains) losses | 358 | 0 | ||
Total other comprehensive income (loss), net of tax | 267 | (522) | ||
Ending balance | (253) | (520) | 2 | |
Other comprehensive income, before reclassification, tax benefit (expense) | 0 | 0 | ||
Reclassification from AOCI, current period, tax expense (benefit) | (16) | 0 | ||
CASH FLOW HEDGES | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 779 | (435) | ||
Other comprehensive income (loss): | ||||
Other comprehensive gains (losses) before reclassifications | 487 | 1,222 | ||
Reclassifications to net income of previously deferred (gains) losses | (835) | (8) | ||
Total other comprehensive income (loss), net of tax | (348) | 1,214 | ||
Ending balance | 431 | 779 | (435) | |
Other comprehensive income, before reclassification, tax benefit (expense) | (40) | (114) | ||
Reclassification from AOCI, current period, tax expense (benefit) | 97 | 11 | ||
NET INVESTMENT HEDGES | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 115 | 115 | ||
Other comprehensive income (loss): | ||||
Other comprehensive gains (losses) before reclassifications | 0 | 0 | ||
Reclassifications to net income of previously deferred (gains) losses | 0 | 0 | ||
Total other comprehensive income (loss), net of tax | 0 | 0 | ||
Ending balance | 115 | 115 | 115 | |
Other comprehensive income, before reclassification, tax benefit (expense) | 0 | 0 | ||
Reclassification from AOCI, current period, tax expense (benefit) | 0 | 0 | ||
OTHER | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (56) | (62) | ||
Other comprehensive income (loss): | ||||
Other comprehensive gains (losses) before reclassifications | (20) | 28 | ||
Reclassifications to net income of previously deferred (gains) losses | 14 | (22) | ||
Total other comprehensive income (loss), net of tax | (6) | 6 | ||
Ending balance | (62) | (56) | $ (62) | |
Other comprehensive income, before reclassification, tax benefit (expense) | 6 | (9) | ||
Reclassification from AOCI, current period, tax expense (benefit) | $ (5) | $ 9 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassification out of AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||
Other expense (income), net | $ 280 | $ 181 | $ (14) |
Income before income taxes | 6,201 | 6,651 | 6,661 |
Tax (expense) benefit | (1,131) | (605) | (934) |
Revenues | 51,217 | 46,710 | 44,538 |
Cost of sales | (28,925) | (25,231) | (24,576) |
Demand creation expense | (4,060) | (3,850) | (3,114) |
Interest expense (income), net | 6 | (205) | $ (262) |
AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||
Gain (loss) net of tax | 463 | 30 | |
Gains (losses) on foreign currency translation adjustment | AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||
Other expense (income), net | (374) | 0 | |
Income before income taxes | (374) | 0 | |
Tax (expense) benefit | 16 | 0 | |
Gain (loss) net of tax | (358) | 0 | |
Gain (losses) on cash flow hedges | AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||
Income before income taxes | 932 | 19 | |
Tax (expense) benefit | (97) | (11) | |
Gain (loss) net of tax | 835 | 8 | |
Gain (losses) on cash flow hedges | Foreign exchange forwards and options | AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||
Other expense (income), net | 338 | 130 | |
Revenues | 26 | (82) | |
Cost of sales | 581 | (23) | |
Demand creation expense | (5) | 1 | |
Gain (losses) on cash flow hedges | Interest rate swaps | AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest expense (income), net | (8) | (7) | |
OTHER | AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||
Other expense (income), net | (19) | 31 | |
Income before income taxes | (19) | 31 | |
Tax (expense) benefit | 5 | (9) | |
Gain (loss) net of tax | $ (14) | $ 22 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 51,217 | $ 46,710 | $ 44,538 |
Allowance for sales discounts returns and miscellaneous claims | 994 | 1,015 | |
Sales to Wholesale Customers | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 28,696 | 26,900 | 27,251 |
Sales through Direct to Consumer | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 22,282 | 19,657 | 17,136 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 239 | 153 | 151 |
Footwear | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 35,290 | 31,237 | 30,007 |
Apparel | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 13,933 | 13,670 | 12,969 |
Equipment | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,755 | 1,650 | 1,411 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 239 | 153 | 151 |
Operating Segments | NIKE Brand | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 48,763 | 44,436 | 42,293 |
Operating Segments | NIKE Brand | Sales to Wholesale Customers | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 27,397 | 25,608 | 25,898 |
Operating Segments | NIKE Brand | Sales through Direct to Consumer | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 21,308 | 18,726 | 16,370 |
Operating Segments | NIKE Brand | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 58 | 102 | 25 |
Operating Segments | NIKE Brand | Footwear | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 33,135 | 29,143 | 28,021 |
Operating Segments | NIKE Brand | Apparel | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 13,843 | 13,567 | 12,865 |
Operating Segments | NIKE Brand | Equipment | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,727 | 1,624 | 1,382 |
Operating Segments | NIKE Brand | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 58 | 102 | 25 |
Operating Segments | CONVERSE | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,427 | 2,346 | 2,205 |
Operating Segments | CONVERSE | Sales to Wholesale Customers | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,299 | 1,292 | 1,353 |
Operating Segments | CONVERSE | Sales through Direct to Consumer | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 974 | 931 | 766 |
Operating Segments | CONVERSE | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 154 | 123 | 86 |
Operating Segments | CONVERSE | Footwear | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,155 | 2,094 | 1,986 |
Operating Segments | CONVERSE | Apparel | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 90 | 103 | 104 |
Operating Segments | CONVERSE | Equipment | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 28 | 26 | 29 |
Operating Segments | CONVERSE | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 154 | 123 | 86 |
Global Brand Divisions | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 58 | 102 | 25 |
Global Brand Divisions | Sales to Wholesale Customers | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | ||
Global Brand Divisions | Sales through Direct to Consumer | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | ||
Global Brand Divisions | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 58 | 102 | 25 |
Global Brand Divisions | Footwear | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | ||
Global Brand Divisions | Apparel | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | ||
Global Brand Divisions | Equipment | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | ||
Global Brand Divisions | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 58 | 102 | 25 |
Corporate | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 27 | (72) | 40 |
Corporate | Sales to Wholesale Customers | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | ||
Corporate | Sales through Direct to Consumer | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | ||
Corporate | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 27 | (72) | 40 |
Corporate | Footwear | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | ||
Corporate | Apparel | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | ||
Corporate | Equipment | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | ||
Corporate | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 27 | (72) | 40 |
NORTH AMERICA | Operating Segments | NIKE Brand | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 21,608 | 18,353 | 17,179 |
NORTH AMERICA | Operating Segments | NIKE Brand | Sales to Wholesale Customers | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 11,273 | 9,621 | 10,186 |
NORTH AMERICA | Operating Segments | NIKE Brand | Sales through Direct to Consumer | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 10,335 | 8,732 | 6,993 |
NORTH AMERICA | Operating Segments | NIKE Brand | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
NORTH AMERICA | Operating Segments | NIKE Brand | Footwear | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 14,897 | 12,228 | 11,644 |
NORTH AMERICA | Operating Segments | NIKE Brand | Apparel | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 5,947 | 5,492 | 5,028 |
NORTH AMERICA | Operating Segments | NIKE Brand | Equipment | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 764 | 633 | 507 |
NORTH AMERICA | Operating Segments | NIKE Brand | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
EUROPE, MIDDLE EAST & AFRICA | Operating Segments | NIKE Brand | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 13,418 | 12,479 | 11,456 |
EUROPE, MIDDLE EAST & AFRICA | Operating Segments | NIKE Brand | Sales to Wholesale Customers | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 8,522 | 8,377 | 7,812 |
EUROPE, MIDDLE EAST & AFRICA | Operating Segments | NIKE Brand | Sales through Direct to Consumer | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 4,896 | 4,102 | 3,644 |
EUROPE, MIDDLE EAST & AFRICA | Operating Segments | NIKE Brand | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
EUROPE, MIDDLE EAST & AFRICA | Operating Segments | NIKE Brand | Footwear | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 8,260 | 7,388 | 6,970 |
EUROPE, MIDDLE EAST & AFRICA | Operating Segments | NIKE Brand | Apparel | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 4,566 | 4,527 | 3,996 |
EUROPE, MIDDLE EAST & AFRICA | Operating Segments | NIKE Brand | Equipment | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 592 | 564 | 490 |
EUROPE, MIDDLE EAST & AFRICA | Operating Segments | NIKE Brand | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
GREATER CHINA | Operating Segments | NIKE Brand | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 7,248 | 7,547 | 8,290 |
GREATER CHINA | Operating Segments | NIKE Brand | Sales to Wholesale Customers | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 3,866 | 4,081 | 4,513 |
GREATER CHINA | Operating Segments | NIKE Brand | Sales through Direct to Consumer | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 3,382 | 3,466 | 3,777 |
GREATER CHINA | Operating Segments | NIKE Brand | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
GREATER CHINA | Operating Segments | NIKE Brand | Footwear | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 5,435 | 5,416 | 5,748 |
GREATER CHINA | Operating Segments | NIKE Brand | Apparel | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,666 | 1,938 | 2,347 |
GREATER CHINA | Operating Segments | NIKE Brand | Equipment | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 147 | 193 | 195 |
GREATER CHINA | Operating Segments | NIKE Brand | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
ASIA PACIFIC & LATIN AMERICA(1) | Operating Segments | NIKE Brand | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 6,431 | 5,955 | 5,343 |
ASIA PACIFIC & LATIN AMERICA(1) | Operating Segments | NIKE Brand | Sales to Wholesale Customers | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 3,736 | 3,529 | 3,387 |
ASIA PACIFIC & LATIN AMERICA(1) | Operating Segments | NIKE Brand | Sales through Direct to Consumer | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,695 | 2,426 | 1,956 |
ASIA PACIFIC & LATIN AMERICA(1) | Operating Segments | NIKE Brand | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
ASIA PACIFIC & LATIN AMERICA(1) | Operating Segments | NIKE Brand | Footwear | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 4,543 | 4,111 | 3,659 |
ASIA PACIFIC & LATIN AMERICA(1) | Operating Segments | NIKE Brand | Apparel | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,664 | 1,610 | 1,494 |
ASIA PACIFIC & LATIN AMERICA(1) | Operating Segments | NIKE Brand | Equipment | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 224 | 234 | 190 |
ASIA PACIFIC & LATIN AMERICA(1) | Operating Segments | NIKE Brand | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | $ 0 |
Prepaid expenses and other current assets | |||
Disaggregation of Revenue [Line Items] | |||
Reserve for sales returns | $ 226 | $ 194 |
Operating Segments and Relate_3
Operating Segments and Related Information - Information by Operating Segments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | $ 51,217 | $ 46,710 | $ 44,538 |
Interest expense (income), net | (6) | 205 | 262 |
Income before income taxes | 6,201 | 6,651 | 6,661 |
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT | 1,036 | 811 | 791 |
Depreciation | 703 | 717 | 744 |
Global Brand Divisions | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 58 | 102 | 25 |
EARNINGS BEFORE INTEREST AND TAXES | (4,841) | (4,262) | (3,656) |
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT | 271 | 222 | 278 |
Depreciation | 211 | 220 | 222 |
Corporate | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 27 | (72) | 40 |
EARNINGS BEFORE INTEREST AND TAXES | (2,840) | (2,219) | (2,261) |
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT | 140 | 103 | 107 |
Depreciation | 131 | 134 | 141 |
NIKE Brand | Operating Segments | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 48,763 | 44,436 | 42,293 |
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT | 889 | 699 | 677 |
Depreciation | 555 | 561 | 577 |
CONVERSE | Operating Segments | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 2,427 | 2,346 | 2,205 |
EARNINGS BEFORE INTEREST AND TAXES | 676 | 669 | 543 |
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT | 7 | 9 | 7 |
Depreciation | 17 | 22 | 26 |
NORTH AMERICA | NIKE Brand | Operating Segments | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 21,608 | 18,353 | 17,179 |
EARNINGS BEFORE INTEREST AND TAXES | 5,454 | 5,114 | 5,089 |
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT | 283 | 146 | 98 |
Depreciation | 128 | 124 | 130 |
EUROPE, MIDDLE EAST & AFRICA | NIKE Brand | Operating Segments | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 13,418 | 12,479 | 11,456 |
EARNINGS BEFORE INTEREST AND TAXES | 3,531 | 3,293 | 2,435 |
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT | 215 | 197 | 153 |
Depreciation | 120 | 134 | 136 |
GREATER CHINA | NIKE Brand | Operating Segments | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 7,248 | 7,547 | 8,290 |
EARNINGS BEFORE INTEREST AND TAXES | 2,283 | 2,365 | 3,243 |
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT | 56 | 78 | 94 |
Depreciation | 54 | 41 | 46 |
ASIA PACIFIC & LATIN AMERICA(1) | NIKE Brand | Operating Segments | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 6,431 | 5,955 | 5,343 |
EARNINGS BEFORE INTEREST AND TAXES | 1,932 | 1,896 | 1,530 |
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT | 64 | 56 | 54 |
Depreciation | $ 42 | $ 42 | $ 43 |
Operating Segments and Relate_4
Operating Segments and Related Information - Accounts Receivable Net Inventories and Property Plant and Equipment Net by Operating Segments (Detail) - USD ($) $ in Millions | May 31, 2023 | May 31, 2022 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Accounts receivable, net | $ 4,131 | $ 4,667 |
Inventories | 8,454 | 8,420 |
Property, plant and equipment, net | 5,081 | 4,791 |
Global Brand Divisions | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Accounts receivable, net | 96 | 113 |
Inventories | 232 | 197 |
Property, plant and equipment, net | 840 | 789 |
Corporate | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Accounts receivable, net | 88 | 53 |
Inventories | 77 | 229 |
Property, plant and equipment, net | 1,829 | 1,817 |
NIKE Brand | Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Accounts receivable, net | 3,808 | 4,384 |
Inventories | 8,072 | 7,912 |
Property, plant and equipment, net | 3,214 | 2,925 |
CONVERSE | Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Accounts receivable, net | 235 | 230 |
Inventories | 305 | 279 |
Property, plant and equipment, net | 38 | 49 |
NORTH AMERICA | NIKE Brand | Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Accounts receivable, net | 1,653 | 1,850 |
Inventories | 3,806 | 4,098 |
Property, plant and equipment, net | 794 | 639 |
EUROPE, MIDDLE EAST & AFRICA | NIKE Brand | Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Accounts receivable, net | 1,197 | 1,351 |
Inventories | 2,167 | 1,887 |
Property, plant and equipment, net | 1,009 | 920 |
GREATER CHINA | NIKE Brand | Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Accounts receivable, net | 162 | 406 |
Inventories | 973 | 1,044 |
Property, plant and equipment, net | 292 | 303 |
ASIA PACIFIC & LATIN AMERICA(1) | NIKE Brand | Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Accounts receivable, net | 700 | 664 |
Inventories | 894 | 686 |
Property, plant and equipment, net | $ 279 | $ 274 |
Operating Segments and Relate_5
Operating Segments and Related Information - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Regional Reporting Disclosure [Line Items] | |||
Revenues | $ 51,217 | $ 46,710 | $ 44,538 |
United States | |||
Regional Reporting Disclosure [Line Items] | |||
Revenues | 22,007 | 18,749 | $ 17,363 |
Long-lived assets attributable to operations (Domestic) | 5,129 | 4,916 | |
Belgium | |||
Regional Reporting Disclosure [Line Items] | |||
Long-lived assets attributable to operations (Domestic) | 702 | 646 | |
China | |||
Regional Reporting Disclosure [Line Items] | |||
Long-lived assets attributable to operations (Domestic) | $ 559 | $ 538 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) - USD ($) $ in Millions | May 31, 2023 | May 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Letters of credit outstanding | $ 588 | $ 289 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Leases [Abstract] | |||
Operating lease cost | $ 585 | $ 593 | $ 589 |
Variable lease cost | $ 403 | $ 366 | $ 347 |
Leases - Maturities (Details)
Leases - Maturities (Details) $ in Millions | May 31, 2023 USD ($) |
Leases [Abstract] | |
Fiscal 2024 | $ 506 |
Fiscal 2025 | 562 |
Fiscal 2026 | 490 |
Fiscal 2027 | 436 |
Fiscal 2028 | 369 |
Thereafter | 1,225 |
Total undiscounted future cash flows related to lease payments | 3,588 |
Less interest | 377 |
Present value of lease liabilities | 3,211 |
Minimum lease payments, agreements signed but not yet commenced | $ 278 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | May 31, 2023 | May 31, 2022 |
Leases [Abstract] | ||
Weighted-average remaining lease term (in years) | 7 years 6 months | 7 years 9 months 18 days |
Weighted-average discount rate | 2.50% | 2.30% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
Leases [Abstract] | |||
Cash paid for amounts included in the measurement of lease liabilities: | $ 575 | $ 589 | $ 583 |
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities | $ 602 | $ 537 | $ 489 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Details) - Discontinued Operations, Held-for-sale - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Feb. 28, 2023 | Aug. 31, 2020 | May 31, 2021 | May 31, 2022 | |
Argentina And Uruguay | NIKE Brand Businesses | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Non-recurring impairment charge | $ 550 | $ 389 | ||
Grupo Axo | Argentina, Uruguay And Chile | NIKE Brand Businesses | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Assets, held-for-sale | $ 182 | |||
Liabilities, held-for-sale | $ 58 | |||
Grupo SBF S.A. | BRAZIL | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss on disposal | $ 50 |
Restructuring (Details)
Restructuring (Details) - One-time Termination Benefits $ in Millions | 12 Months Ended |
May 31, 2021 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Payments for restructuring | $ 212 |
Operating Overhead Expense | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 214 |
Stock-based compensation expense | 41 |
Cost of sales | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 35 |
Stock-based compensation expense | $ 4 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Detail) - Allowance for Sales Returns - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2021 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
BALANCE AT BEGINNING OF PERIOD | $ 525 | $ 595 | $ 682 |
CHARGED TO COSTS AND EXPENSES | 3,344 | 2,573 | 2,617 |
CHARGED TO OTHER ACCOUNTS | (11) | (31) | 41 |
WRITE-OFFS, NET | (3,309) | (2,612) | (2,745) |
BALANCE AT END OF PERIOD | $ 549 | $ 525 | $ 595 |
Uncategorized Items - nke-20230
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-02 [Member] |