NIKE (NKE) 10-Q 8 Oct 09 2010 Q1 Quarterly report Financial data

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Millions	3 Months Ended Aug. 31, 2009	3 Months Ended May. 31, 2009
Current assets:
Cash and equivalents	2260.6	2291.1
Short-term investments	1369.2	1,164
Accounts receivable, net	2835.3	2883.9
Inventories (Note 2)	2288.4	2,357
Deferred income taxes (Note 6)	214.1	272.4
Prepaid expenses and other current assets (Note 11)	639.3	765.6
Total current assets	9606.9	9,734
Property, plant and equipment	4373.8	4255.7
Less accumulated depreciation	2,393	2,298
Property, plant and equipment, net	1980.8	1957.7
Identifiable intangible assets, net (Note 3)	471.2	467.4
Goodwill (Note 3)	194.9	193.5
Deferred income taxes and other long-term assets (Notes 6 and 11)	936.8	897
Total assets	13190.6	13249.6
Current liabilities:
Current portion of long-term debt	7.1	32
Notes payable	94.7	342.9
Accounts payable	961.9	1031.9
Accrued liabilities (Note 4)	1643.4	1783.9
Income taxes payable (Note 6)	145.7	86.3
Total current liabilities	2852.8	3,277
Long-term debt	443.2	437.2
Deferred income taxes and other long-term liabilities (Notes 6 and 11)	803.6	842
Commitments and contingencies (Note 13)	-	-
Redeemable preferred stock	0.3	0.3
Common stock at stated value:
Capital in excess of stated value	3015.9	2871.4
Accumulated other comprehensive income (Note 7)	244.3	367.5
Retained earnings	5827.7	5451.4
Total shareholders' equity	9090.7	8693.1
Total liabilities and shareholders' equity	13190.6	13249.6
Class A Common Stock
Common stock at stated value:
Common Stock	0.1	0.1
Class B Common Stock
Common stock at stated value:
Common Stock	2.7	2.7

1_Statement Of Financial Positi

Statement Of Financial Position Classified (Parenthetical) (USD $)
Share data in Millions	Aug. 31, 2009	May. 31, 2009
Class A Common Stock
Common Stock, shares outstanding	95.3	95.3
Class B Common Stock
Common Stock, shares outstanding	391.7	390.2

Statement Of Income

Statement Of Income (USD $)
In Millions, except Per Share data	3 Months Ended Aug. 31, 2009	3 Months Ended Aug. 31, 2008
Revenues	4798.5	5432.2
Cost of sales	2,583	2870.1
Gross Margin	2215.5	2562.1
Selling and administrative expense	1546.1	1856.4
Other income (expense), net	13.1	-1.6
Interest (expense) income, net	-1.3	10.1
Income before income taxes	681.2	714.2
Income tax expense (Note 6)	168.2	203.7
Net income	$513	510.5
Basic earnings per common share (Note 9)	1.06	1.05
Diluted earnings per common share (Note 9)	1.04	1.03
Dividends declared per common share	0.25	0.23

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Millions	3 Months Ended Aug. 31, 2009	3 Months Ended Aug. 31, 2008
Cash provided by operations:
Net income	$513	510.5
Income charges (credits) not affecting cash:
Depreciation	79.3	78.5
Deferred income taxes	(18)	(73)
Stock-based compensation	91.4	78.2
Amortization and other	1.6	6.8
Changes in certain working capital components and other assets and liabilities:
Decrease (increase) in accounts receivable	93.5	-292.9
Decrease (increase) in inventories	94.6	(57)
(Increase) decrease in prepaid expenses and other assets	-54.6	49.2
(Decrease) increase in accounts payable, accrued liabilities and income taxes payable	-91.8	57.3
Cash provided by operations	709	357.6
Cash used by investing activities:
Purchases of investments	-640.3	-791.7
Maturities of investments	96.2	203.4
Sales of investments	322.9	266.4
Additions to property, plant and equipment	-80.5	-106.7
Proceeds from the sale of property, plant and equipment	0.3	13.1
Increase in other assets and liabilities, net	0	-15.2
Settlement of net investment hedges	-30.5	2.6
Cash used by investing activities	-331.9	-428.1
Cash used by financing activities:
Reduction in long-term debt, including current portion	-26.8	-1.6
(Decrease) increase in notes payable	-249.3	45
Proceeds from exercise of stock options and other stock issuances	47.4	45.8
Excess tax benefits from share-based payment arrangements	6.7	8.7
Repurchase of common stock	(15)	-418.8
Dividends on common stock	-121.4	(113)
Cash used by financing activities	-358.4	-433.9
Effect of exchange rate changes on cash	-49.2	-3.9
Net decrease in cash and equivalents	-30.5	-508.3
Cash and equivalents, beginning of period	2291.1	2133.9
Cash and equivalents, end of period	2260.6	1625.6
Supplemental disclosure of cash flow information:
Dividends declared and not paid	121.7	111.7

NOTE 1 - Summary of Significant

NOTE 1 - Summary of Significant Accounting Policies:
	3 Months Ended Aug. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
NOTE 1 - Summary of Significant Accounting Policies:	NOTE 1 - Summary of Significant Accounting Policies: Basis of presentation: The accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary for a fair statement of the results of operations for the interim period.The year-end condensed consolidated balance sheet data as of May31, 2009 was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.The interim financial information and notes thereto should be read in conjunction with the Companys latest Annual Report on Form 10-K.The results of operations for the three months ended August31, 2009 are not necessarily indicative of results to be expected for the entire year. Subsequent events have been evaluated through October8, 2009, the date of issuance of the Companys Unaudited Condensed Consolidated Financial Statements. Recently Adopted Accounting Standards: Effective June1, 2009, the Company adopted the following accounting standards: In May 2009, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standard (SFAS) No.165, Subsequent Events (FAS 165), which establishes general standards of accounting and disclosure for events that occur after the balance sheet date but before financial statements are issued. The adoption of FAS 165 did not have an impact on the Companys consolidated financial position or results of operations. See Note 1 Basis of Presentation for disclosure required under FAS 165. In April 2009, the FASB issued three related FASB Staff Positions (FSP): (i)FSP Financial Accounting Standard (FAS) No.115-2 and FAS No.124-2, Recognition of Presentation of Other-Than-Temporary Impairments (FSP FAS 115-2 and FAS 124-2) which provides new criteria fordetermining whether an impairment of a debt security is temporary and recorded in other comprehensive income in the equity sectionof the balance sheet or other-than-temporary and recorded as a loss on the statement of operations, (ii)FSP FAS No.107-1 andAccounting Principles Board Opinion (APB) No.28-1, Interim Disclosures about Fair Value of Financial Instruments (FSP FAS 107-1 and APB 28-1) which requires disclosures about fair value of financial instruments in interim and annual reporting periods, and (iii)FSP FAS No.157-4, Determining the Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly which provides additional guidance for estimating fair value in accordance with SFAS No.157, Fair Value Measurements (FAS 157). The adoption of these FSPs did not have an impact on the Companys consolidated financial position or results of operations. See Note 5 - Fair Value Measurements for the disclosure required under FSP FAS 115-2 and FAS 124-2, and FSP FAS 107-1 and APB 28-1. In June 2008, the FASB issued FSP Emerging Issues Task Force (EITF) 03-6-1 Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securitie

NOTE 2 - Inventories:

NOTE 2 - Inventories:
	3 Months Ended Aug. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
NOTE 2 - Inventories:	NOTE 2 - Inventories: Inventory balances of $2,288.4 million and $2,357.0 million at August31, 2009 and May31, 2009, respectively, were substantially all finished goods.

NOTE 3 - Identified Intangible

NOTE 3 - Identified Intangible Assets and Goodwill:
	3 Months Ended Aug. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
NOTE 3 - Identified Intangible Assets and Goodwill:	NOTE 3 - Identified Intangible Assets and Goodwill: The following table summarizes the Companys identifiable intangible assets and goodwill balances as of August31, 2009 and May31, 2009. August31, 2009 May31, 2009 Gross Carrying Amount Accumulated Amortization NetCarrying Amount Gross Carrying Amount Accumulated Amortization NetCarrying Amount (in millions) Amortized intangible assets: Patents $ 58.7 $ (18.1 ) $ 40.6 $ 56.6 $ (17.2 ) $ 39.4 Trademarks 38.1 (12.6 ) 25.5 37.5 (10.9 ) 26.6 Other 36.5 (18.4 ) 18.1 40.0 (19.6 ) 20.4 Total $ 133.3 $ (49.1 ) $ 84.2 $ 134.1 $ (47.7 ) $ 86.4 Unamortized intangible assets - Trademarks $ 387.0 $ 381.0 Identifiable intangible assets, net $ 471.2 $ 467.4 Goodwill $ 194.9 $ 193.5 The effect of foreign exchange fluctuations for the three month period ended August31, 2009 increased goodwill and unamortized intangible assetsbyapproximately $1.4 million and $6.0 million, respectively, resulting from the weakening of the U.S. dollar in relation to the British pound sterling. Amortization expense, which is included in selling and administrative expense, was $3.4 million and $2.2 million forthe three-month periods ended August31, 2009 and August31, 2008, respectively. The estimated amortization expense for intangible assets subject to amortization for the remainder of fiscal year 2010 and each of the years ending May31, 2011 through May31, 2014 are as follows:$9.7 million; 2011: $12.5 million; 2012: $11.8 million; 2013: $9.9 million; 2014: $7.9 million. All goodwill balances are included in the Companys Other category for segment reporting purposes.

NOTE 4 - Accrued Liabilities:

NOTE 4 - Accrued Liabilities:
	3 Months Ended Aug. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
NOTE 4 - Accrued Liabilities:	NOTE 4 - Accrued Liabilities: Accrued liabilities include the following: August31,2009 May31,2009 (in millions) Compensation and benefits, excluding taxes $ 324.3 $ 491.9 Endorser compensation 242.1 237.1 Taxes other than income taxes 219.4 161.9 Advertising and marketing 149.4 97.6 Dividends payable 121.7 121.4 Import and logistics costs 70.5 59.4 Restructuring charges(1) 61.3 149.6 Fair value of derivatives 60.5 68.9 Other(2) 394.2 396.1 $ 1,643.4 $ 1,783.9 (1) Accrued restructuring charges primarily consist of severance costs relating to the Companys restructuring activities that took place during the fourth quarter of fiscal 2009. See Note 10 - Restructuring Activities for more information. (2) Other consists of various accrued expenses and no individual item accounted for more than 5% of the balance at August31, 2009 and May31, 2009.

NOTE 5 - Fair Value Measurement

NOTE 5 - Fair Value Measurements:
	3 Months Ended Aug. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
NOTE 5 - Fair Value Measurements:	NOTE 5 - Fair Value Measurements: Effective June1, 2008, the Company adopted FAS157, Fair Value Measurementsfor financial assets and liabilities.FAS 157 establishes a hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach, and cost approach). FAS 157 is applied under existing accounting pronouncements that require or permit fair value measurements and, accordingly, does not require any new fair value measurements. The levels of hierarchy are described below: Level 1:Observable inputs such as 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 in which there is little or no market data available, which require the reporting entity to develop its own assumptions. The Companys 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 stringent level of input that is significant to the fair value measurement. The following table presents information about the Companys financial assets and liabilities measured at fair value on a recurring basis as of August31, 2009 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. August 31, 2009 FairValueMeasurementsUsing Level1 Level2 Level3 Assets/Liabilitiesat Fair Value Balance Sheet Classification (in millions) Assets Derivatives $ $ 210.8 $ $ 210.8 Other current assets and other long-term assets Available-for-sale securities 335.8 1,242.6 1,578.4 Cash equivalents Available-for-sale securities 640.2 729.0 1,369.2 Short-term investments Total assets $ 976.0 $ 2,182.4 $ $ 3,158.4 Liabilities Derivatives $ $ 61.2 $ $ 61.2 Accrued liabilities and other long-term liabilities Total Liabilities $ $ 61.2 $ $ 61.2 Derivative financial instruments include foreign currency forwards, option contracts and interest rate swaps.The fair value of these derivatives contracts is determined using observable market inputs such as the forward pricing curve, currency volatilities, currency correlations, and interest rates, and considers nonperformance risk of the Company and that of its counterparties. Adjustments relating to these risks were not material for the period ended August31, 2009. Available-for-sale securities

NOTE 6 - Income Taxes:

NOTE 6 - Income Taxes:
	3 Months Ended Aug. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
NOTE 6 - Income Taxes:	NOTE 6 - Income Taxes: The effective tax rate was 24.7% and 28.5% for the three months ended August31, 2009 and August31, 2008, respectively. The effective tax rate for the three months ended August31, 2009 reflects a reduction in our on-going effective tax rate resulting from our operations outside of the United States; our tax rates on those operations are generally lower than the U.S. statutory rate. As of August31, 2009, total gross unrecognized tax benefits, excluding related interest and penalties were $305.6 million, $117.4 million of which would affect the Companys effective tax rate if recognized in future periods. Total gross unrecognized tax benefits, excluding interest and penalties, as of May31, 2009 were $273.9 million, $110.6 million of which would affect the Companys effective tax rate if recognized in future periods.The gross liability for payment of interest and penalties decreased $1.9 million during the quarter ended August31, 2009.As of August31, 2009, accrued interest and penalties related to uncertain tax positions was $73.5 million (excluding federal benefit). The Company is subject to taxation primarily in the U.S., China and the Netherlands as well as various state and other foreign jurisdictions. The Company has concluded substantially all U.S. federal income tax matters through fiscal year 2006. The Company is currently under audit by the Internal Revenue Service for the 2007, 2008 and 2009 tax years. The Companys major foreign jurisdictions, China and the Netherlands, have concluded substantially all income tax matters through calendar 1998 and fiscal 2002, respectively. It is reasonably possible that the Internal Revenue Service audit for the 2007, 2008 and 2009 tax years will be completed during the next twelve months, which could result in a decrease in our balance of unrecognized tax benefits.An estimate of the range cannot be made at this time; however, we do not anticipate that total gross unrecognized tax benefits will change significantly as a result of full or partial settlement of audits within the next 12 months.

NOTE 7 - Comprehensive Income:

NOTE 7 - Comprehensive Income:
	3 Months Ended Aug. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
NOTE 7 - Comprehensive Income:	NOTE 7 - Comprehensive Income: Comprehensive income, net of taxes, is as follows: ThreeMonthsEnded August31, 2009 2008 (in millions) Net income $ 513.0 $ 510.5 Other comprehensive (loss) income: Changes in cumulative translation adjustment and other 23.8 (162.9 ) Changes due to cash flow hedging instruments: Net (loss) gain on hedge derivatives (63.7 ) 172.4 Reclassification to net income of previously deferred (gains) losses related to hedge derivative instruments (61.3 ) 37.1 Reclassification of ineffective hedge (gains) losses to net income(1) (3.8 ) Changes due to net investment hedges: Net (loss) gain on hedge derivatives (18.2 ) 63.0 Other comprehensive (loss) income: (123.2 ) 109.6 Total comprehensive income $ 389.8 $ 620.1 (1) Refer to Note 11 - Risk Management and Derivatives for additional detail.

NOTE 8 - Stock-Based Compensati

NOTE 8 - Stock-Based Compensation:
	3 Months Ended Aug. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
NOTE 8 - Stock-Based Compensation:	NOTE 8 - Stock-Based Compensation: A committee of the Board of Directors grants stock options and restricted stock under the NIKE, Inc. 1990 Stock Incentive Plan (the 1990 Plan). The committee has granted substantially all stock options at 100% of the market price on the date of grant. Substantially all stock option grants outstanding under the 1990 Plan were granted in the first quarter of each fiscal year, vest ratably over four years, and expire 10 years from the date of grant.In addition to the 1990 Plan, the Company gives employees the right to purchase shares at a discount to the market price under employee stock purchase plans (ESPPs). The Company accounts for stock-based compensation in accordance with SFAS No.123R Share-Based Payment (FAS 123R).Under FAS 123R, the Company estimates the fair value of options granted under the 1990 Plan and employees purchase rights under the ESPPs using the Black-Scholes option pricing model.The Company recognizes this fair value as selling and administrative expense over the vesting period using the straight-line method. The following table summarizes the Companys total stock-based compensation expense: ThreeMonthsEnded August31, 2009 2008 (in millions) Stock Options(1) $ 85.0 $ 73.3 ESPPs 4.3 3.0 Restricted Stock 2.1 1.9 Total stock-based compensation expense $ 91.4 $ 78.2 (1) In accordance with FAS 123R, accelerated stock option expense is recorded for employees eligible for accelerated stock option vesting upon retirement.Accelerated stock option expense was $70.8 million and $55.7 million for thethree months ended August31, 2009 and August31, 2008, respectively, As of August31, 2009, the Company had $149.4 million of unrecognized compensation costs from stock options, net of estimated forfeitures, to be recognized as selling and administrative expense over a weighted average period of 2.8 years. The weighted average fair value per share of the options granted during the three months ended August31, 2009 and August31, 2008 as computed using the Black-Scholes pricing model was $23.40 and $17.11, respectively.The weighted average assumptions used to estimate these fair values are as follows: ThreeMonthsEnded August31, 2009 2008 Dividend yield 1.9 % 1.5 % Expected volatility 58.0 % 32.4 % Weighted-average expected life (in years) 5.0 5.0 Risk-free interest rate 2.5 % 3.4 % Expected volatility is estimated based on the implied volatility in market traded options on the Companys common stock with a term greater than one year, along with other factors. The weighted average expected life of options is based on an analysis of historical and expected future exercise patterns.The interest rate is based on the U.S. Treasury (constant maturity) risk-free rate in effect at the date of grant for periods corresponding with the expected term of the options.

NOTE 9 - Earnings Per Common Sh

NOTE 9 - Earnings Per Common Share:
	3 Months Ended Aug. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
NOTE 9 - Earnings Per Common Share:	NOTE 9 - Earnings Per Common Share: The following represents a reconciliation from basic earnings per share to diluted earnings per share.Options to purchase an additional 19.2million and 13.9million shares of common stock were outstandingfor the three months endedAugust 31, 2009 and August31, 2008, respectively, but were not included in the computation of diluted earnings per share because the options were antidilutive. ThreeMonthsEnded August31, 2009 2008 (inmillions,exceptpersharedata) Determination of shares: Weighted average common shares outstanding 485.8 487.2 Assumed conversion of dilutive stock options and awards 5.8 7.7 Diluted weighted average common shares outstanding 491.6 494.9 Basic earnings per common share $ 1.06 $ 1.05 Diluted earnings per common share $ 1.04 $ 1.03

NOTE 10 - Restructuring Activit

NOTE 10 - Restructuring Activities:
	3 Months Ended Aug. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
NOTE 10 - Restructuring Activities:	NOTE 10 - Restructuring Activities: During the fourth quarter of fiscal 2009, the Company took necessary steps to streamline its management structure, enhance consumer focus, drive innovation more quickly to market and establish a more scalable, long-term cost structure. As a result, the Company reduced its global workforce by approximately 5% and incurred gross restructuring charges of $195 million, primarily consisting of severance costs related to the workforce reduction. As nearly all of the restructuring activities were completed in the fourth quarter of fiscal 2009, the Company does not expect to recognize additional costs in future periods relating to these actions. The activity in the restructuring accrual for the three month period ended August31, 2009 is as follows (in millions): Restructuring accrual - May31, 2009 $ 149.6 Cash payments (89.7 ) Foreign currency translation and other 1.4 Restructuring accrual - August 31, 2009 $ 61.3 The accrual balance as of August31, 2009 will be relieved throughout fiscal year 2010 and early 2011, as severance payments are completed. The restructuring accrual is included in the balance of accrued liabilities in the unaudited condensed consolidated balance sheet.

NOTE 11 - Risk Management and D

NOTE 11 - Risk Management and Derivatives:
	3 Months Ended Aug. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
NOTE 11 - Risk Management and Derivatives:	NOTE 11 - 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 purposes. The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking hedge transactions. This process includes linking all derivatives to either specific firm commitments or forecasted transactions. The Company also enters into foreign exchange forwards to mitigate the change in fair value of specific assets and liabilities on the balance sheet; these are not designated as hedging instruments under SFAS No.133 Accounting for Derivative Instruments and Hedging Activities, as amended and interpreted ( FAS 133). Accordingly, changes in the fair value of hedges of recorded balance sheet positions are recognized immediately in other income (expense), net, on the income statement together with the transaction gain or loss from the hedged balance sheet position. The majority of derivatives outstanding as of August31, 2009 are designated as either cash flow, fair value or net investment hedges. All derivatives are recognized on the balance sheet at their fair value and classified based on the instruments maturity date. The total notional amount of outstanding derivatives as of August31, 2009 was $6.4 billion, which is primarily comprised of cash flow hedges denominated in Euros, Japanese yen and British pounds. The following table presents the fair values of derivative instruments included within the unaudited condensed consolidated balance sheet as of August31, 2009: Asset Derivatives Liability Derivatives Balance Sheet Location FairValue Balance Sheet Location FairValue (in millions) Derivatives designated as hedging instruments under FAS 133: Foreign exchange forwards and options Prepaid expenses and other current assets $ 150.9 Accrued liabilities $ 34.9 Foreign exchange forwards and options Deferred income taxes and other assets 36.6 Deferred income taxes and other liabilities 0.1 Interest rate swap contracts Deferred income taxes and other assets 13.4 Deferred income taxes and other liabilities Total derivatives designated as hedging instruments under FAS 133 200.9 35.0 Derivatives not designated as hedging instruments under FAS 133: Foreign exchange forwards and options Prepaid expenses and other current assets $ 9.9 Accrued liabilities $ 25.6 Foreign exchange forwards and options Deferred income taxes and other assets Deferred income taxes and other liabilities 0.6 Total derivatives not designated as hedging instruments under FAS 133 9.9 26.2 Total derivatives $ 210.8

NOTE 12 - Operating Segments:

NOTE 12 - Operating Segments:
	3 Months Ended Aug. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
NOTE 12 - Operating Segments:	NOTE 12 - Operating Segments: The Companys operating segments are evidence of the structure of the Companys internal organization. The major segments are defined by geographic regions for operations participating in NIKE Brand sales activity excluding NIKE Golf. Each NIKE Brand geographic segment operates predominantly in one industry: the design, production, marketing and selling of sports and fitness footwear, apparel, and equipment. As previously announced, in the third quarter of fiscal 2009 the Company initiated a reorganization of the NIKE brand into a new model consisting of six geographies.Effective June1, 2009, the Companys new reportable operating segments for the NIKE brand are: North America, Western Europe, Central and Eastern Europe, Greater China, Japan, and Emerging Markets. Previously, NIKE brand operations were organized into the following four geographic regions: U.S., Europe, Middle East and Africa (collectively, EMEA), Asia Pacific, and Americas. Our Other category is broken into two components for presentation purposes to align with the way management views the Company. The Global Brand Divisions category primarily represents NIKE brand licensing businesses that are not part of a geographic operating segment and selling, general and administrative expenses that are centrally managed for the NIKE brand. The Other Businesses category primarily consists of theactivities of Cole Haan, Converse Inc., Hurley International LLC, NIKE Golf and Umbro Ltd. Activities represented in the Other category are considered immaterial for individual disclosure based on the aggregation criteria in SFAS No.131 Disclosures about Segments of an Enterprise and Related Information. Prior period amounts have been reclassified to conform to the Companys new operating structure described above. Revenues as shown below represent sales to external customers for each segment.Intercompany revenues have been eliminated and are immaterial for separate disclosure. Corporate consists of unallocated general and administrative expenses, which includes expenses associated with centrally managed departments, depreciation and amortization related to the Companys headquarters, unallocated insurance and benefit programs, certain foreign currency gains and losses, including hedge gains and losses, certain corporate eliminations and other items. Effective June1, 2009, the primary financial measure used by the Company to evaluate performance of individual operating segments is Earnings Before Interest and Taxes (commonly referred to as EBIT) which represents net income before interest (expense) income, net and income taxes in the Unaudited Condensed Consolidated Statements of Income. Reconciling items for earnings before interest and taxes represent corporate expense items that are not allocated to the operating segments for management reporting. Previously, the Company evaluated performance of individual operating segments based on pre-tax income or income before income taxes. As part of our centrally managed foreign exchange risk management program, standard foreign currency rates are assigned to each NIKE brand entity in our geographic operat

NOTE 13 - Commitments and Conti

NOTE 13 - Commitments and Contingencies:
	3 Months Ended Aug. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
NOTE 13 - Commitments and Contingencies:	NOTE 13 - Commitments and Contingencies: At August31, 2009, the Company had letters of credit outstanding totaling $120.7 million.These letters of credit were issued primarily for the purchase of inventory. There have been no other significant subsequent developments relating to the commitments and contingencies reported on the Companys latest Annual Report on Form 10-K.

Document Information

Document Information
	3 Months Ended Aug. 31, 2009 USD / shares
Document Information [Text Block]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2009-08-31

Entity Information

Entity Information (USD $)
	3 Months Ended Aug. 31, 2009
Entity [Text Block]
Trading Symbol	NKE
Entity Registrant Name	NIKE INC
Entity Central Index Key	0000320187
Current Fiscal Year End Date	--05-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	391,709,510
Class A Common Stock
Entity [Text Block]
Entity Common Stock, Shares Outstanding	95,299,318