
(State or other jurisdiction of incorporation) | (IRS Employer Identification No.) | ||||||||||
SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT: | |||||||||||
(Title of each class) | (Trading symbol) | (Name of each exchange on which registered) | |||||||||
SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT: | |||||||||||
NONE | |||||||||||
Indicate by check mark: | |||||||||||||||||||||||||||||||||||
| • | if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. | þ | ¨ | ||||||||||||||||||||||||||||||||
| • | if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. | ¨ | þ | ||||||||||||||||||||||||||||||||
| • | whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | þ | ¨ | ||||||||||||||||||||||||||||||||
| • | whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). | þ | ¨ | ||||||||||||||||||||||||||||||||
| • | whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. | ||||||||||||||||||||||||||||||||||
þ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | Emerging growth company | |||||||||||||||||||||||||||||
| • | if an emerging growth company, if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ¨ | |||||||||||||||||||||||||||||||||
| • | whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. | ||||||||||||||||||||||||||||||||||
| • | if securities are registered pursuant to Section 12(b) of the Act, whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. | ||||||||||||||||||||||||||||||||||
| • | whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to § 240.10D-1(b). | ¨ | |||||||||||||||||||||||||||||||||
| • | whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). | þ | |||||||||||||||||||||||||||||||||
As of November 30, 2023, the aggregate market values of the Registrant's Common Stock held by non-affiliates were: | |||||
Class A | $ | ||||
Class B | |||||
| $ | |||||
As of July 10, 2024, the number of shares of the Registrant's Common Stock outstanding were: | |||||
Class A | |||||
Class B | |||||
| 1,499,358,944 | |||||
| PAGE | ||||||||
| U.S. RETAIL STORES | NUMBER | ||||
| NIKE Brand factory stores | 211 | ||||
| NIKE Brand in-line stores (including employee-only stores) | 85 | ||||
| Converse stores (including factory stores) | 81 | ||||
| TOTAL | 377 | ||||
| NON-U.S. RETAIL STORES | NUMBER | ||||
| NIKE Brand factory stores | 561 | ||||
| NIKE Brand in-line stores (including employee-only stores) | 53 | ||||
| Converse stores (including factory stores) | 54 | ||||
| TOTAL | 668 | ||||
![]() | Mark Parker, Executive Chairman — Mr. Parker, 68, joined NIKE in 1979, is Executive Chairman of the Board of Directors and served as President and Chief Executive Officer of NIKE, Inc. from 2006 to 2020. During his employment with NIKE, he has had primary responsibilities in product research, design and development, marketing and brand management. Mr. Parker previously served in various roles at NIKE including President of the NIKE Brand, Vice President of Global Footwear, General Manager, corporate Vice President and divisional Vice President in charge of product development. | ||||||||||
![]() | John Donahoe II, President and Chief Executive Officer — Mr. Donahoe, 64, joined NIKE in 2014 as a member of the Board of Directors and has served as President and Chief Executive Officer of NIKE, Inc. since January 2020. He is responsible for NIKE’s global business portfolio, which includes the NIKE, Jordan and Converse brands. Prior to joining NIKE, Mr. Donahoe was the President and Chief Executive Officer of ServiceNow, Inc. from 2017 to 2020 and, prior to that, the President and Chief Executive Officer of eBay Inc. Earlier in his career, he worked for Bain & Company for nearly two decades, becoming the firm’s President and Chief Executive Officer in 1999. | ||||||||||
![]() | Matthew Friend, Executive Vice President and Chief Financial Officer — Mr. Friend, 46, joined NIKE in 2009 and has served as Executive Vice President and Chief Financial Officer of NIKE, Inc. since 2020, and leads the Company's finance, demand and supply management, procurement and global places and services organizations. Mr. Friend previously served in various roles at NIKE including as Vice President of Investor Relations and Chief Financial Officer of the NIKE Brand. Prior to joining NIKE, Mr. Friend worked in the financial industry, including as Vice President in the investment banking and mergers and acquisitions groups at Goldman Sachs and Morgan Stanley. | ||||||||||
![]() | Monique Matheson, Executive Vice President, Chief Human Resources Officer — Ms. Matheson, 57, joined NIKE in 1998 and has served as Executive Vice President, Chief Human Resources Officer of NIKE, Inc. since 2017, overseeing and driving the Company’s strategic global Human Resources strategy. In this role, Ms. Matheson leads through the lens of people — managing functions including recruitment, succession planning, learning and career development, diversity and inclusion, organizational effectiveness, employee engagement, pay and benefits and people solutions. Previously, Ms. Matheson has held roles including Vice President, Chief Talent and Diversity Officer and Vice President, Senior Human Resources Business Partner for North America, Global Product Creation (Footwear, Apparel and Equipment), Global Finance and NIKE, Inc. Affiliates. Prior to joining NIKE, Ms. Matheson practiced employment law. | ||||||||||
![]() | Ann Miller, Executive Vice President, Chief Legal Officer — Ms. Miller, 50, joined NIKE in 2007 and has served as Executive Vice President, Chief Legal Officer of NIKE, Inc. since 2022. In her capacity as Chief Legal Officer, she oversees all legal, compliance, government & public affairs, social community impact, security, resilience and investigation matters of the Company. Previously, Ms. Miller served as Vice President, Corporate Secretary from 2017 to 2022. Ms. Miller has also previously held other roles in the NIKE legal department, including Chief Ethics & Compliance Officer and Converse's General Counsel. Prior to joining NIKE, Ms. Miller worked at the law firm Sullivan & Cromwell LLP. Ms. Miller brings more than 25 years of legal and business expertise to her role. | ||||||||||
![]() | Heidi O'Neill, President, Consumer, Product & Brand — Ms. O'Neill, 59, joined NIKE in 1998 and has served as President, Consumer, Product & Brand of NIKE, Inc. since 2023. In this role, Ms. O’Neill leads the integration of the global Men's, Women's & Kids' consumer teams, the entire global product engine and global brand marketing and sports marketing to build deep storytelling, relationships and engagement with the brand. Most recently, Ms. O’Neill has also served as President, Consumer and Marketplace from 2020 to 2023 and President, Direct to Consumer from 2016 to 2020. Since joining NIKE, she has held a variety of key roles, including leading NIKE's marketplace and four geographic operating regions, leading NIKE Direct and NIKE's retail and digital-commerce business and creating and leading NIKE's Women’s business. Prior to joining NIKE, Ms. O'Neill held roles at Levi Strauss & Company and was a Vice President at Foote, Cone & Belding. | ||||||||||
![]() | Craig Williams, President, Geographies & Marketplace — Mr. Williams, 55, joined NIKE in 2019 and has served as President, Geographies & Marketplace of NIKE, Inc. since 2023. In this role, Mr. Williams leads NIKE's four geographic operating units, the global direct to consumer business and wholesale marketplace partnerships. In addition, Mr. Williams leads the NIKE Supply Chain and Logistics organization. Mr. Williams previously served as President of Jordan Brand from 2019 to June 2023, overseeing the global business and team of designers, footwear and apparel developers, marketers and geography leaders. Prior to joining NIKE, Mr. Williams held executive leadership positions at The Coca-Cola Company as well as roles at CIBA Vision, a subsidiary of Novartis AG, and Kraft Foods Inc. Mr. Williams also served five years in the U.S. Navy as a Naval Nuclear Power Officer. | ||||||||||
| PERIOD | TOTAL NUMBER OF SHARES PURCHASED | AVERAGE PRICE PAID PER SHARE | APPROXIMATE DOLLAR VALUE OF SHARES THAT MAY YET BE PURCHASED UNDER THE PLANS OR PROGRAMS (IN MILLIONS) | ||||||||
| March 1 — March 31, 2024 | 2,583,730 | $ | 98.42 | $ | 9,739 | ||||||
| April 1 — April 30, 2024 | 3,606,667 | $ | 93.73 | $ | 9,401 | ||||||
| May 1 — May 31, 2024 | 4,895,400 | $ | 93.16 | $ | 8,945 | ||||||
| 11,085,797 | $ | 94.57 | |||||||||

| YEAR ENDED MAY 31, | |||||||||||
(Dollars in millions) | 2024 | 2023 | 2022 | ||||||||
| Net income | $ | 5,700 | $ | 5,070 | $ | 6,046 | |||||
| Add: Interest expense (income), net | (161) | (6) | 205 | ||||||||
| Add: Income tax expense | 1,000 | 1,131 | 605 | ||||||||
| Earnings before interest and taxes | $ | 6,539 | $ | 6,195 | $ | 6,856 | |||||
| YEAR ENDED MAY 31, | |||||||||||
(Dollars in millions) | 2024 | 2023 | 2022 | ||||||||
| Numerator | |||||||||||
| Earnings before interest and taxes | $ | 6,539 | $ | 6,195 | $ | 6,856 | |||||
| Denominator | |||||||||||
| Total NIKE, Inc. Revenues | $ | 51,362 | $ | 51,217 | $ | 46,710 | |||||
| EBIT Margin | 12.7% | 12.1% | 14.7% | ||||||||
| FOR THE TRAILING FOUR QUARTERS ENDED | ||||||||
| (Dollars in millions) | MAY 31, 2024 | MAY 31, 2023 | ||||||
| Numerator | ||||||||
| Net income | $ | 5,700 | $ | 5,070 | ||||
| Add: Interest expense (income), net | (161) | (6) | ||||||
| Add: Income tax expense | 1,000 | 1,131 | ||||||
| Earnings before interest and taxes | 6,539 | 6,195 | ||||||
Income tax adjustment(1) | (976) | (1,130) | ||||||
| Earnings before interest and after taxes | $ | 5,563 | $ | 5,065 | ||||
| AVERAGE FOR THE TRAILING FIVE QUARTERS ENDED | ||||||||
| MAY 31, 2024 | MAY 31, 2023 | |||||||
| Denominator | ||||||||
Total debt(2) | $ | 12,110 | $ | 12,491 | ||||
| Add: Shareholders' equity | 14,155 | 14,982 | ||||||
| Less: Cash and equivalents and Short-term investments | 10,309 | 11,394 | ||||||
| Total invested capital | $ | 15,956 | $ | 16,079 | ||||
| RETURN ON INVESTED CAPITAL | 34.9% | 31.5% | ||||||
(Dollars in millions, except per share data) | FISCAL 2024 | FISCAL 2023 | % CHANGE | FISCAL 2022 | % CHANGE | ||||||||||||
| Revenues | $ | 51,362 | $ | 51,217 | 0 | % | $ | 46,710 | 10 | % | |||||||
| Cost of sales | 28,475 | 28,925 | -2 | % | 25,231 | 15 | % | ||||||||||
| Gross profit | 22,887 | 22,292 | 3 | % | 21,479 | 4 | % | ||||||||||
| Gross margin | 44.6 | % | 43.5 | % | 46.0 | % | |||||||||||
| Demand creation expense | 4,285 | 4,060 | 6 | % | 3,850 | 5 | % | ||||||||||
| Operating overhead expense | 12,291 | 12,317 | 0 | % | 10,954 | 12 | % | ||||||||||
| Total selling and administrative expense | 16,576 | 16,377 | 1 | % | 14,804 | 11 | % | ||||||||||
| % of revenues | 32.3 | % | 32.0 | % | 31.7 | % | |||||||||||
| Interest expense (income), net | (161) | (6) | — | 205 | — | ||||||||||||
| Other (income) expense, net | (228) | (280) | — | (181) | — | ||||||||||||
| Income before income taxes | 6,700 | 6,201 | 8 | % | 6,651 | -7 | % | ||||||||||
| Income tax expense | 1,000 | 1,131 | -12 | % | 605 | 87 | % | ||||||||||
| Effective tax rate | 14.9 | % | 18.2 | % | 9.1 | % | |||||||||||
| NET INCOME | $ | 5,700 | $ | 5,070 | 12 | % | $ | 6,046 | -16 | % | |||||||
| Diluted earnings per common share | $ | 3.73 | $ | 3.23 | 15 | % | $ | 3.75 | -14 | % | |||||||
(Dollars in millions) | FISCAL 2024 | FISCAL 2023 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES(1) | FISCAL 2022 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES(1) | ||||||||||||||||
| NIKE, Inc. Revenues: | |||||||||||||||||||||||
| NIKE Brand Revenues by: | |||||||||||||||||||||||
| Footwear | $ | 33,427 | $ | 33,135 | 1 | % | 1 | % | $ | 29,143 | 14 | % | 20 | % | |||||||||
| Apparel | 13,775 | 13,843 | 0 | % | 0 | % | 13,567 | 2 | % | 8 | % | ||||||||||||
| Equipment | 2,075 | 1,727 | 20 | % | 20 | % | 1,624 | 6 | % | 13 | % | ||||||||||||
Global Brand Divisions(2) | 45 | 58 | -22 | % | -25 | % | 102 | -43 | % | -43 | % | ||||||||||||
| Total NIKE Brand Revenues | $ | 49,322 | $ | 48,763 | 1 | % | 1 | % | $ | 44,436 | 10 | % | 16 | % | |||||||||
| Converse | 2,082 | 2,427 | -14 | % | -15 | % | 2,346 | 3 | % | 8 | % | ||||||||||||
Corporate(3) | (42) | 27 | — | — | (72) | — | — | ||||||||||||||||
| TOTAL NIKE, INC. REVENUES | $ | 51,362 | $ | 51,217 | 0 | % | 1 | % | $ | 46,710 | 10 | % | 16 | % | |||||||||
| Supplemental NIKE Brand Revenues Details: | |||||||||||||||||||||||
| NIKE Brand Revenues by: | |||||||||||||||||||||||
| Sales to Wholesale Customers | $ | 27,758 | $ | 27,397 | 1 | % | 2 | % | $ | 25,608 | 7 | % | 14 | % | |||||||||
| Sales through NIKE Direct | 21,519 | 21,308 | 1 | % | 1 | % | 18,726 | 14 | % | 20 | % | ||||||||||||
Global Brand Divisions(2) | 45 | 58 | -22 | % | -25 | % | 102 | -43 | % | -43 | % | ||||||||||||
| TOTAL NIKE BRAND REVENUES | $ | 49,322 | $ | 48,763 | 1 | % | 1 | % | $ | 44,436 | 10 | % | 16 | % | |||||||||
NIKE Brand Revenues on a Wholesale Equivalent Basis(1): | |||||||||||||||||||||||
| Sales to Wholesale Customers | $ | 27,758 | $ | 27,397 | 1 | % | 2 | % | $ | 25,608 | 7 | % | 14 | % | |||||||||
| Sales from our Wholesale Operations to NIKE Direct Operations | 13,009 | 12,730 | 2 | % | 2 | % | 10,543 | 21 | % | 27 | % | ||||||||||||
| TOTAL NIKE BRAND WHOLESALE EQUIVALENT REVENUES | $ | 40,767 | $ | 40,127 | 2 | % | 2 | % | $ | 36,151 | 11 | % | 18 | % | |||||||||
NIKE Brand Wholesale Equivalent Revenues by:(1) | |||||||||||||||||||||||
| Men's | $ | 20,868 | $ | 20,733 | 1 | % | 1 | % | $ | 18,797 | 10 | % | 17 | % | |||||||||
| Women's | 8,586 | 8,606 | 0 | % | 1 | % | 8,273 | 4 | % | 11 | % | ||||||||||||
Kids' | 5,111 | 5,038 | 1 | % | 1 | % | 4,874 | 3 | % | 10 | % | ||||||||||||
| Jordan Brand | 6,988 | 6,589 | 6 | % | 7 | % | 5,122 | 29 | % | 35 | % | ||||||||||||
Others(4) | (786) | (839) | 6 | % | 6 | % | (915) | 8 | % | -3 | % | ||||||||||||
| TOTAL NIKE BRAND WHOLESALE EQUIVALENT REVENUES | $ | 40,767 | $ | 40,127 | 2 | % | 2 | % | $ | 36,151 | 11 | % | 18 | % | |||||||||
![]() | ![]() | ![]() | ||||||
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(Dollars in millions) | FISCAL 2024 | FISCAL 2023 | % CHANGE | FISCAL 2022 | % CHANGE | ||||||||||||
Demand creation expense(1) | $ | 4,285 | $ | 4,060 | 6 | % | $ | 3,850 | 5 | % | |||||||
| Operating overhead expense | 12,291 | 12,317 | 0 | % | 10,954 | 12 | % | ||||||||||
| Total selling and administrative expense | $ | 16,576 | $ | 16,377 | 1 | % | $ | 14,804 | 11 | % | |||||||
| % of revenues | 32.3 | % | 32.0 | % | 30 | bps | 31.7 | % | 30 | bps | |||||||
(Dollars in millions) | FISCAL 2024 | FISCAL 2023 | FISCAL 2022 | |||||||||||||||||
| Other (income) expense, net | $ | (228) | $ | (280) | $ | (181) | ||||||||||||||
| FISCAL 2024 | FISCAL 2023 | % CHANGE | FISCAL 2022 | % CHANGE | |||||||||||||
| Effective tax rate | 14.9 | % | 18.2 | % | (330) bps | 9.1 | % | 910 bps | |||||||||
(Dollars in millions) | FISCAL 2024 | FISCAL 2023 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES(1) | FISCAL 2022 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES(1) | ||||||||||||||||
| North America | $ | 21,396 | $ | 21,608 | -1 | % | -1 | % | $ | 18,353 | 18 | % | 18 | % | |||||||||
| Europe, Middle East & Africa | 13,607 | 13,418 | 1 | % | 0 | % | 12,479 | 8 | % | 21 | % | ||||||||||||
| Greater China | 7,545 | 7,248 | 4 | % | 8 | % | 7,547 | -4 | % | 4 | % | ||||||||||||
Asia Pacific & Latin America(2) | 6,729 | 6,431 | 5 | % | 5 | % | 5,955 | 8 | % | 17 | % | ||||||||||||
Global Brand Divisions(3) | 45 | 58 | -22 | % | -25 | % | 102 | -43 | % | -43 | % | ||||||||||||
| TOTAL NIKE BRAND | $ | 49,322 | $ | 48,763 | 1 | % | 1 | % | $ | 44,436 | 10 | % | 16 | % | |||||||||
| Converse | 2,082 | 2,427 | -14 | % | -15 | % | 2,346 | 3 | % | 8 | % | ||||||||||||
Corporate(4) | (42) | 27 | — | — | (72) | — | — | ||||||||||||||||
| TOTAL NIKE, INC. REVENUES | $ | 51,362 | $ | 51,217 | 0 | % | 1 | % | $ | 46,710 | 10 | % | 16 | % | |||||||||
(Dollars in millions) | FISCAL 2024 | FISCAL 2023 | % CHANGE | FISCAL 2022 | % CHANGE | ||||||||||||||||||||||||
| North America | $ | 5,822 | $ | 5,454 | 7 | % | $ | 5,114 | 7 | % | |||||||||||||||||||
| Europe, Middle East & Africa | 3,388 | 3,531 | -4 | % | 3,293 | 7 | % | ||||||||||||||||||||||
| Greater China | 2,309 | 2,283 | 1 | % | 2,365 | -3 | % | ||||||||||||||||||||||
| Asia Pacific & Latin America | 1,885 | 1,932 | -2 | % | 1,896 | 2 | % | ||||||||||||||||||||||
| Global Brand Divisions | (4,720) | (4,841) | 2 | % | (4,262) | -14 | % | ||||||||||||||||||||||
TOTAL NIKE BRAND(1) | $ | 8,684 | $ | 8,359 | 4 | % | $ | 8,406 | -1 | % | |||||||||||||||||||
| Converse | 474 | 676 | -30 | % | 669 | 1 | % | ||||||||||||||||||||||
Corporate | (2,619) | (2,840) | 8 | % | (2,219) | -28 | % | ||||||||||||||||||||||
TOTAL NIKE, INC. EARNINGS BEFORE INTEREST AND TAXES(1) | $ | 6,539 | $ | 6,195 | 6 | % | $ | 6,856 | -10 | % | |||||||||||||||||||
EBIT margin(1) | 12.7 | % | 12.1 | % | 14.7 | % | |||||||||||||||||||||||
| Interest expense (income), net | (161) | (6) | — | 205 | — | ||||||||||||||||||||||||
| TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES | $ | 6,700 | $ | 6,201 | 8 | % | $ | 6,651 | -7 | % | |||||||||||||||||||
(Dollars in millions) | FISCAL 2024 | FISCAL 2023 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | FISCAL 2022 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | ||||||||||||||||
| Revenues by: | |||||||||||||||||||||||
| Footwear | $ | 14,537 | $ | 14,897 | -2 | % | -2 | % | $ | 12,228 | 22 | % | 22 | % | |||||||||
| Apparel | 5,953 | 5,947 | 0 | % | 0 | % | 5,492 | 8 | % | 9 | % | ||||||||||||
| Equipment | 906 | 764 | 19 | % | 19 | % | 633 | 21 | % | 21 | % | ||||||||||||
| TOTAL REVENUES | $ | 21,396 | $ | 21,608 | -1 | % | -1 | % | $ | 18,353 | 18 | % | 18 | % | |||||||||
| Revenues by: | |||||||||||||||||||||||
| Sales to Wholesale Customers | $ | 11,004 | $ | 11,273 | -2 | % | -2 | % | $ | 9,621 | 17 | % | 18 | % | |||||||||
| Sales through NIKE Direct | 10,392 | 10,335 | 1 | % | 1 | % | 8,732 | 18 | % | 18 | % | ||||||||||||
| TOTAL REVENUES | $ | 21,396 | $ | 21,608 | -1 | % | -1 | % | $ | 18,353 | 18 | % | 18 | % | |||||||||
| EARNINGS BEFORE INTEREST AND TAXES | $ | 5,822 | $ | 5,454 | 7 | % | $ | 5,114 | 7 | % | |||||||||||||
(Dollars in millions) | FISCAL 2024 | FISCAL 2023 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | FISCAL 2022 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | ||||||||||||||||
| Revenues by: | |||||||||||||||||||||||
| Footwear | $ | 8,473 | $ | 8,260 | 3 | % | 1 | % | $ | 7,388 | 12 | % | 25 | % | |||||||||
| Apparel | 4,380 | 4,566 | -4 | % | -6 | % | 4,527 | 1 | % | 14 | % | ||||||||||||
| Equipment | 754 | 592 | 27 | % | 24 | % | 564 | 5 | % | 18 | % | ||||||||||||
| TOTAL REVENUES | $ | 13,607 | $ | 13,418 | 1 | % | 0 | % | $ | 12,479 | 8 | % | 21 | % | |||||||||
| Revenues by: | |||||||||||||||||||||||
| Sales to Wholesale Customers | $ | 8,562 | $ | 8,522 | 0 | % | 0 | % | $ | 8,377 | 2 | % | 15 | % | |||||||||
| Sales through NIKE Direct | 5,045 | 4,896 | 3 | % | 0 | % | 4,102 | 19 | % | 33 | % | ||||||||||||
| TOTAL REVENUES | $ | 13,607 | $ | 13,418 | 1 | % | 0 | % | $ | 12,479 | 8 | % | 21 | % | |||||||||
| EARNINGS BEFORE INTEREST AND TAXES | $ | 3,388 | $ | 3,531 | -4 | % | $ | 3,293 | 7 | % | |||||||||||||
(Dollars in millions) | FISCAL 2024 | FISCAL 2023 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | FISCAL 2022 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | ||||||||||||||||
| Revenues by: | |||||||||||||||||||||||
| Footwear | $ | 5,552 | $ | 5,435 | 2 | % | 6 | % | $ | 5,416 | 0 | % | 8 | % | |||||||||
| Apparel | 1,828 | 1,666 | 10 | % | 14 | % | 1,938 | -14 | % | -7 | % | ||||||||||||
| Equipment | 165 | 147 | 12 | % | 17 | % | 193 | -24 | % | -18 | % | ||||||||||||
| TOTAL REVENUES | $ | 7,545 | $ | 7,248 | 4 | % | 8 | % | $ | 7,547 | -4 | % | 4 | % | |||||||||
| Revenues by: | |||||||||||||||||||||||
| Sales to Wholesale Customers | $ | 4,262 | $ | 3,866 | 10 | % | 15 | % | $ | 4,081 | -5 | % | 2 | % | |||||||||
| Sales through NIKE Direct | 3,283 | 3,382 | -3 | % | 1 | % | 3,466 | -2 | % | 5 | % | ||||||||||||
| TOTAL REVENUES | $ | 7,545 | $ | 7,248 | 4 | % | 8 | % | $ | 7,547 | -4 | % | 4 | % | |||||||||
| EARNINGS BEFORE INTEREST AND TAXES | $ | 2,309 | $ | 2,283 | 1 | % | $ | 2,365 | -3 | % | |||||||||||||
(Dollars in millions) | FISCAL 2024 | FISCAL 2023 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | FISCAL 2022 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | ||||||||||||||||
| Revenues by: | |||||||||||||||||||||||
| Footwear | $ | 4,865 | $ | 4,543 | 7 | % | 7 | % | $ | 4,111 | 11 | % | 19 | % | |||||||||
| Apparel | 1,614 | 1,664 | -3 | % | -2 | % | 1,610 | 3 | % | 13 | % | ||||||||||||
| Equipment | 250 | 224 | 12 | % | 12 | % | 234 | -4 | % | 4 | % | ||||||||||||
| TOTAL REVENUES | $ | 6,729 | $ | 6,431 | 5 | % | 5 | % | $ | 5,955 | 8 | % | 17 | % | |||||||||
| Revenues by: | |||||||||||||||||||||||
| Sales to Wholesale Customers | $ | 3,930 | $ | 3,736 | 5 | % | 6 | % | $ | 3,529 | 6 | % | 14 | % | |||||||||
| Sales through NIKE Direct | 2,799 | 2,695 | 4 | % | 4 | % | 2,426 | 11 | % | 22 | % | ||||||||||||
| TOTAL REVENUES | $ | 6,729 | $ | 6,431 | 5 | % | 5 | % | $ | 5,955 | 8 | % | 17 | % | |||||||||
| EARNINGS BEFORE INTEREST AND TAXES | $ | 1,885 | $ | 1,932 | -2 | % | $ | 1,896 | 2 | % | |||||||||||||
(Dollars in millions) | FISCAL 2024 | FISCAL 2023 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | FISCAL 2022 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | ||||||||||||||||
| Revenues | $ | 45 | $ | 58 | -22 | % | -25 | % | $ | 102 | -43 | % | -43 | % | |||||||||
| Earnings (Loss) Before Interest and Taxes | $ | (4,720) | $ | (4,841) | 2 | % | $ | (4,262) | -14 | % | |||||||||||||
(Dollars in millions) | FISCAL 2024 | FISCAL 2023 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | FISCAL 2022 | % CHANGE | % CHANGE EXCLUDING CURRENCY CHANGES | ||||||||||||||||
| Revenues by: | |||||||||||||||||||||||
| Footwear | $ | 1,800 | $ | 2,155 | -16 | % | -17 | % | $ | 2,094 | 3 | % | 8 | % | |||||||||
| Apparel | 93 | 90 | 3 | % | 4 | % | 103 | -13 | % | -7 | % | ||||||||||||
| Equipment | 37 | 28 | 32 | % | 34 | % | 26 | 8 | % | 16 | % | ||||||||||||
Other(1) | 152 | 154 | -1 | % | -2 | % | 123 | 25 | % | 25 | % | ||||||||||||
| TOTAL REVENUES | $ | 2,082 | $ | 2,427 | -14 | % | -15 | % | $ | 2,346 | 3 | % | 8 | % | |||||||||
| Revenues by: | |||||||||||||||||||||||
| Sales to Wholesale Customers | $ | 1,098 | $ | 1,299 | -15 | % | -16 | % | $ | 1,292 | 1 | % | 7 | % | |||||||||
| Sales through Direct to Consumer | 832 | 974 | -15 | % | -14 | % | 931 | 5 | % | 8 | % | ||||||||||||
Other(1) | 152 | 154 | -1 | % | -2 | % | 123 | 25 | % | 25 | % | ||||||||||||
| TOTAL REVENUES | $ | 2,082 | $ | 2,427 | -14 | % | -15 | % | $ | 2,346 | 3 | % | 8 | % | |||||||||
| EARNINGS BEFORE INTEREST AND TAXES | $ | 474 | $ | 676 | -30 | % | $ | 669 | 1 | % | |||||||||||||
(Dollars in millions) | FISCAL 2024 | FISCAL 2023 | % CHANGE | FISCAL 2022 | % CHANGE | ||||||||||||
| Revenues | $ | (42) | $ | 27 | — | $ | (72) | — | |||||||||
| Earnings (Loss) Before Interest and Taxes | $ | (2,619) | $ | (2,840) | 8 | % | $ | (2,219) | -28 | % | |||||||
| EXPECTED MATURITY DATE YEAR ENDING MAY 31, | ||||||||||||||||||||||||||
(Dollars in millions) | 2025 | 2026 | 2027 | 2028 | 2029 | THEREAFTER | TOTAL | FAIR VALUE | ||||||||||||||||||
| Interest Rate Risk | ||||||||||||||||||||||||||
| Long-term U.S. Dollar debt — Fixed rate | ||||||||||||||||||||||||||
| Principal payments | $ | 1,000 | $ | — | $ | 2,000 | $ | — | $ | — | $ | 6,000 | $ | 9,000 | $ | 7,631 | ||||||||||
| Average interest rate | 2.4 | % | 0.0 | % | 2.6 | % | 0.0 | % | 0.0 | % | 3.3 | % | 3.1 | % | ||||||||||||
Interest Rate Swaps — Fixed rate swapped to variable rate | ||||||||||||||||||||||||||
Notional amount | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1,800 | $ | 1,800 | $ | (31) | ||||||||||
Average fixed interest rate | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 3.5 | % | 3.5 | % | ||||||||||||
Average variable interest rate | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 3.7 | % | 3.7 | % | ||||||||||||
| John J. Donahoe II | Matthew Friend | ||||
| President and Chief Executive Officer | Executive Vice President and Chief Financial Officer | ||||
| YEAR ENDED MAY 31, | |||||||||||
(In millions, except per share data) | 2024 | 2023 | 2022 | ||||||||
| Revenues | $ | $ | $ | ||||||||
| Cost of sales | |||||||||||
| Gross profit | |||||||||||
| Demand creation expense | |||||||||||
| Operating overhead expense | |||||||||||
| Total selling and administrative expense | |||||||||||
| Interest expense (income), net | ( | ( | |||||||||
| Other (income) expense, net | ( | ( | ( | ||||||||
| Income before income taxes | |||||||||||
| Income tax expense | |||||||||||
| NET INCOME | $ | $ | $ | ||||||||
| Earnings per common share: | |||||||||||
| Basic | $ | $ | $ | ||||||||
| Diluted | $ | $ | $ | ||||||||
| Weighted average common shares outstanding: | |||||||||||
| Basic | |||||||||||
| Diluted | |||||||||||
| YEAR ENDED MAY 31, | |||||||||||
(Dollars in millions) | 2024 | 2023 | 2022 | ||||||||
| Net income | $ | $ | $ | ||||||||
| Other comprehensive income (loss), net of tax: | |||||||||||
| Change in net foreign currency translation adjustment | ( | ( | |||||||||
| Change in net gains (losses) on cash flow hedges | ( | ( | |||||||||
| Change in net gains (losses) on other | ( | ||||||||||
| Total other comprehensive income (loss), net of tax | ( | ( | |||||||||
| TOTAL COMPREHENSIVE INCOME | $ | $ | $ | ||||||||
| MAY 31, | ||||||||
(In millions) | 2024 | 2023 | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and equivalents | $ | $ | ||||||
| Short-term investments | ||||||||
| Accounts receivable, net | ||||||||
| Inventories | ||||||||
| Prepaid expenses and other current assets | ||||||||
| Total current assets | ||||||||
| Property, plant and equipment, net | ||||||||
| Operating lease right-of-use assets, net | ||||||||
| Identifiable intangible assets, net | ||||||||
| Goodwill | ||||||||
| Deferred income taxes and other assets | ||||||||
| TOTAL ASSETS | $ | $ | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Current portion of long-term debt | $ | $ | ||||||
| Notes payable | ||||||||
| Accounts payable | ||||||||
| Current portion of operating lease liabilities | ||||||||
| Accrued liabilities | ||||||||
| Income taxes payable | ||||||||
| Total current liabilities | ||||||||
| Long-term debt | ||||||||
| Operating lease liabilities | ||||||||
| Deferred income taxes and other liabilities | ||||||||
Commitments and contingencies (Note 16) | ||||||||
| Redeemable preferred stock | ||||||||
| Shareholders' equity: | ||||||||
| Common stock at stated value: | ||||||||
Class A convertible — | ||||||||
Class B — | ||||||||
| Capital in excess of stated value | ||||||||
| Accumulated other comprehensive income (loss) | ||||||||
| Retained earnings (deficit) | ||||||||
| Total shareholders' equity | ||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | $ | ||||||
| YEAR ENDED MAY 31, | |||||||||||
(Dollars in millions) | 2024 | 2023 | 2022 | ||||||||
| Cash provided (used) by operations: | |||||||||||
| Net income | $ | $ | $ | ||||||||
| Adjustments to reconcile net income to net cash provided (used) by operations: | |||||||||||
| Depreciation | |||||||||||
| Deferred income taxes | ( | ( | ( | ||||||||
| Stock-based compensation | |||||||||||
| Amortization, impairment and other | |||||||||||
| Net foreign currency adjustments | ( | ( | ( | ||||||||
| Changes in certain working capital components and other assets and liabilities: | |||||||||||
| (Increase) decrease in accounts receivable | ( | ( | |||||||||
| (Increase) decrease in inventories | ( | ( | |||||||||
| (Increase) decrease in prepaid expenses, operating lease right-of-use assets and other current and non-current assets | ( | ( | ( | ||||||||
| Increase (decrease) in accounts payable, accrued liabilities, operating lease liabilities and other current and non-current liabilities | ( | ||||||||||
| Cash provided (used) by operations | |||||||||||
| Cash provided (used) by investing activities: | |||||||||||
| Purchases of short-term investments | ( | ( | ( | ||||||||
| Maturities of short-term investments | |||||||||||
| Sales of short-term investments | |||||||||||
| Additions to property, plant and equipment | ( | ( | ( | ||||||||
| Other investing activities | ( | ( | |||||||||
| Cash provided (used) by investing activities | ( | ||||||||||
| Cash provided (used) by financing activities: | |||||||||||
| Increase (decrease) in notes payable, net | ( | ||||||||||
| Repayment of borrowings | ( | ||||||||||
| Proceeds from exercise of stock options and other stock issuances | |||||||||||
| Repurchase of common stock | ( | ( | ( | ||||||||
| Dividends — common and preferred | ( | ( | ( | ||||||||
| Other financing activities | ( | ( | ( | ||||||||
| Cash provided (used) by financing activities | ( | ( | ( | ||||||||
| Effect of exchange rate changes on cash and equivalents | ( | ( | ( | ||||||||
| Net increase (decrease) in cash and equivalents | ( | ( | |||||||||
| Cash and equivalents, beginning of year | |||||||||||
| CASH AND EQUIVALENTS, END OF YEAR | $ | $ | $ | ||||||||
| Supplemental disclosure of cash flow information: | |||||||||||
| Cash paid during the year for: | |||||||||||
| Interest, net of capitalized interest | $ | $ | $ | ||||||||
| Income taxes | |||||||||||
| Non-cash additions to property, plant and equipment | |||||||||||
| Dividends declared and not paid | |||||||||||
| COMMON STOCK | CAPITAL IN EXCESS OF STATED VALUE | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | RETAINED EARNINGS (DEFICIT) | TOTAL | |||||||||||||||||||||||||
| CLASS A | CLASS B | ||||||||||||||||||||||||||||
(In millions, except per share data) | SHARES | AMOUNT | SHARES | AMOUNT | |||||||||||||||||||||||||
| Balance at May 31, 2021 | $ | — | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||
| Stock options exercised | |||||||||||||||||||||||||||||
| Conversion to Class B Common Stock | — | ||||||||||||||||||||||||||||
| Repurchase of Class B Common Stock | ( | ( | ( | ( | |||||||||||||||||||||||||
Dividends on common stock ($ | ( | ( | |||||||||||||||||||||||||||
| Issuance of shares to employees, net of shares withheld for employee taxes | ( | ||||||||||||||||||||||||||||
| Stock-based compensation | |||||||||||||||||||||||||||||
| Net income | |||||||||||||||||||||||||||||
| Other comprehensive income (loss) | |||||||||||||||||||||||||||||
| Balance at May 31, 2022 | $ | — | $ | $ | $ | $ | $ | ||||||||||||||||||||||
| Stock options exercised | |||||||||||||||||||||||||||||
| Repurchase of Class B Common Stock | ( | ( | ( | ( | |||||||||||||||||||||||||
Dividends on common stock ($ | ( | ( | |||||||||||||||||||||||||||
| Issuance of shares to employees, net of shares withheld for employee taxes | |||||||||||||||||||||||||||||
| Stock-based compensation | |||||||||||||||||||||||||||||
| Net income | |||||||||||||||||||||||||||||
| Other comprehensive income (loss) | ( | ( | |||||||||||||||||||||||||||
| Balance at May 31, 2023 | $ | — | $ | $ | $ | $ | $ | ||||||||||||||||||||||
| Stock options exercised | |||||||||||||||||||||||||||||
| Conversion to Class B Common Stock | ( | — | |||||||||||||||||||||||||||
| Repurchase of Class B Common Stock | ( | ( | ( | ( | |||||||||||||||||||||||||
Dividends on common stock ($ | ( | ( | |||||||||||||||||||||||||||
| Issuance of shares to employees, net of shares withheld for employee taxes | |||||||||||||||||||||||||||||
| Stock-based compensation | |||||||||||||||||||||||||||||
| Net income | |||||||||||||||||||||||||||||
| Other comprehensive income (loss) | ( | ( | |||||||||||||||||||||||||||
| Balance at May 31, 2024 | $ | — | $ | $ | $ | $ | $ | ||||||||||||||||||||||
| Note 1 | Summary of Significant Accounting Policies | |||||||
| Note 2 | Property, Plant and Equipment | |||||||
| Note 3 | Accrued Liabilities | |||||||
| Note 4 | Fair Value Measurements | |||||||
| Note 5 | Short-Term Borrowings and Credit Lines | |||||||
| Note 6 | Long-Term Debt | |||||||
| Note 7 | Income Taxes | |||||||
| Note 8 | Redeemable Preferred Stock | |||||||
| Note 9 | Common Stock and Stock-Based Compensation | |||||||
| Note 10 | Earnings Per Share | |||||||
| Note 11 | Benefit Plans | |||||||
| Note 12 | Risk Management and Derivatives | |||||||
| Note 13 | Accumulated Other Comprehensive Income (Loss) | |||||||
| Note 14 | Revenues | |||||||
| Note 15 | Operating Segments and Related Information | |||||||
| Note 16 | Commitments and Contingencies | |||||||
| Note 17 | Leases | |||||||
| Note 18 | Divestitures | |||||||
| Note 19 | Restructuring | |||||||
| NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
| NOTE 2 — PROPERTY, PLANT AND EQUIPMENT | ||
| MAY 31, | ||||||||
(Dollars in millions) | 2024 | 2023 | ||||||
| Land and improvements | $ | $ | ||||||
| Buildings | ||||||||
| Machinery and equipment | ||||||||
| Internal-use software | ||||||||
| Leasehold improvements | ||||||||
| Construction in process | ||||||||
| Total property, plant and equipment, gross | ||||||||
| Less accumulated depreciation | ||||||||
| TOTAL PROPERTY, PLANT AND EQUIPMENT, NET | $ | $ | ||||||
| NOTE 3 — ACCRUED LIABILITIES | ||
| MAY 31, | ||||||||
(Dollars in millions) | 2024 | 2023 | ||||||
| Compensation and benefits, excluding taxes | $ | $ | ||||||
| Sales-related reserves | ||||||||
| Endorsement compensation | ||||||||
| Dividends payable | ||||||||
| Other | ||||||||
| Total Accrued Liabilities | $ | $ | ||||||
| NOTE 4 — FAIR VALUE MEASUREMENTS | ||
| MAY 31, 2024 | |||||||||||
(Dollars in millions) | ASSETS AT FAIR VALUE | CASH AND EQUIVALENTS | SHORT-TERM INVESTMENTS | ||||||||
| Cash | $ | $ | $ | — | |||||||
| Level 1: | |||||||||||
| U.S. Treasury securities | |||||||||||
| Level 2: | |||||||||||
| Commercial paper and bonds | |||||||||||
| Money market funds | |||||||||||
| Time deposits | |||||||||||
| U.S. Agency securities | |||||||||||
| Total Level 2 | |||||||||||
| TOTAL | $ | $ | $ | ||||||||
| MAY 31, 2023 | |||||||||||
(Dollars in millions) | ASSETS AT FAIR VALUE | CASH AND EQUIVALENTS | SHORT-TERM INVESTMENTS | ||||||||
| Cash | $ | $ | $ | — | |||||||
| Level 1: | |||||||||||
| U.S. Treasury securities | |||||||||||
| Level 2: | |||||||||||
| Commercial paper and bonds | |||||||||||
| Money market funds | |||||||||||
| Time deposits | |||||||||||
| U.S. Agency securities | |||||||||||
| Total Level 2 | |||||||||||
| TOTAL | $ | $ | $ | ||||||||
| MAY 31, 2024 | |||||||||||||||||||||||
| DERIVATIVE ASSETS | DERIVATIVE LIABILITIES | ||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||
| Level 2: | |||||||||||||||||||||||
Foreign exchange forwards and options(1) | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Interest rate swaps(1) | |||||||||||||||||||||||
TOTAL | $ | $ | $ | $ | $ | $ | |||||||||||||||||
| 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) | $ | $ | $ | $ | $ | $ | |||||||||||||||||
| NOTE 5 — SHORT-TERM BORROWINGS AND CREDIT LINES | ||
| NOTE 6 — LONG-TERM DEBT | ||
| BOOK VALUE OUTSTANDING AS OF MAY 31, | |||||||||||||||||
Scheduled Maturity (Dollars in millions) | ORIGINAL PRINCIPAL | INTEREST RATE | INTEREST PAYMENTS | 2024 | 2023 | ||||||||||||
Corporate Term Debt:(1)(2) | |||||||||||||||||
| March 27, 2025 | % | $ | $ | ||||||||||||||
| November 1, 2026 | % | ||||||||||||||||
| March 27, 2027 | % | ||||||||||||||||
| March 27, 2030 | % | ||||||||||||||||
March 27, 2040(3) | % | ||||||||||||||||
May 1, 2043(3) | % | ||||||||||||||||
November 1, 2045(3) | % | ||||||||||||||||
| November 1, 2046 | % | ||||||||||||||||
| March 27, 2050 | % | ||||||||||||||||
| Total | |||||||||||||||||
| Less Current Portion of Long-Term Debt | |||||||||||||||||
| TOTAL LONG-TERM DEBT | $ | $ | |||||||||||||||
| NOTE 7 — INCOME TAXES | ||
| YEAR ENDED MAY 31, | |||||||||||
(Dollars in millions) | 2024 | 2023 | 2022 | ||||||||
| Income before income taxes: | |||||||||||
| United States | $ | $ | $ | ||||||||
| Foreign | |||||||||||
| TOTAL INCOME BEFORE INCOME TAXES | $ | $ | $ | ||||||||
| YEAR ENDED MAY 31, | |||||||||||
(Dollars in millions) | 2024 | 2023 | 2022 | ||||||||
| Current: | |||||||||||
| United States | |||||||||||
| Federal | $ | $ | $ | ||||||||
| State | |||||||||||
| Foreign | |||||||||||
| Total Current | |||||||||||
| Deferred: | |||||||||||
| United States | |||||||||||
| Federal | ( | ( | ( | ||||||||
| State | ( | ( | ( | ||||||||
| Foreign | ( | ( | |||||||||
| Total Deferred | ( | ( | ( | ||||||||
| TOTAL INCOME TAX EXPENSE | $ | $ | $ | ||||||||
| YEAR ENDED MAY 31, | |||||||||||
| 2024 | 2023 | 2022 | |||||||||
| Federal income tax rate | % | % | % | ||||||||
| State taxes, net of federal benefit | % | % | % | ||||||||
| Foreign earnings | - | % | % | - | % | ||||||
| Subpart F deferred tax benefit | % | % | - | % | |||||||
| Foreign-derived intangible income benefit | - | % | - | % | - | % | |||||
| Excess tax benefits from stock-based compensation | - | % | - | % | - | % | |||||
| Income tax audits and contingency reserves | % | % | % | ||||||||
| U.S. research and development tax credit | - | % | - | % | - | % | |||||
| Other, net | % | % | % | ||||||||
| EFFECTIVE INCOME TAX RATE | % | % | % | ||||||||
| MAY 31, | ||||||||
(Dollars in millions) | 2024 | 2023 | ||||||
| Deferred tax assets: | ||||||||
Inventories | $ | $ | ||||||
Sales return reserves | ||||||||
Deferred compensation | ||||||||
| Stock-based compensation | ||||||||
Reserves and accrued liabilities | ||||||||
| Operating lease liabilities | ||||||||
| Intangibles | ||||||||
| Capitalized research and development expenditures | ||||||||
| Net operating loss carry-forwards | ||||||||
| Subpart F deferred tax | ||||||||
Other | ||||||||
| Total deferred tax assets | ||||||||
| Valuation allowance | ( | ( | ||||||
| Total deferred tax assets after valuation allowance | ||||||||
| Deferred tax liabilities: | ||||||||
| Foreign withholding tax on undistributed earnings of foreign subsidiaries | ( | ( | ||||||
Property, plant and equipment | ( | ( | ||||||
| Right-of-use assets | ( | ( | ||||||
Other | ( | ( | ||||||
| Total deferred tax liabilities | ( | ( | ||||||
NET DEFERRED TAX ASSET (1) | $ | $ | ||||||
| MAY 31, | |||||||||||
(Dollars in millions) | 2024 | 2023 | 2022 | ||||||||
| Unrecognized tax benefits, beginning of the period | $ | $ | $ | ||||||||
| Gross increases related to prior period tax positions | |||||||||||
| Gross decreases related to prior period tax positions | ( | ( | ( | ||||||||
| Gross increases related to current period tax positions | |||||||||||
| Settlements | ( | ( | ( | ||||||||
| Lapse of statute of limitations | ( | ( | ( | ||||||||
| Changes due to currency translation | ( | ( | |||||||||
| UNRECOGNIZED TAX BENEFITS, END OF THE PERIOD | $ | $ | $ | ||||||||
| NOTE 8 — REDEEMABLE PREFERRED STOCK | ||
| NOTE 9 — COMMON STOCK AND STOCK-BASED COMPENSATION | ||
| YEAR ENDED MAY 31, | |||||||||||
(Dollars in millions) | 2024 | 2023 | 2022 | ||||||||
Stock options(1) | $ | $ | $ | ||||||||
| ESPPs | |||||||||||
Restricted stock and restricted stock units(1)(2) | |||||||||||
| TOTAL STOCK-BASED COMPENSATION EXPENSE | $ | $ | $ | ||||||||
| YEAR ENDED MAY 31, | |||||||||||
| 2024 | 2023 | 2022 | |||||||||
| Dividend yield | % | % | % | ||||||||
| Expected volatility | % | % | % | ||||||||
| Weighted average expected life (in years) | |||||||||||
| Risk-free interest rate | % | % | % | ||||||||
SHARES(1) | WEIGHTED AVERAGE OPTION PRICE | |||||||
| (In millions) | ||||||||
| Options outstanding as of May 31, 2023 | $ | |||||||
| Exercised | ( | |||||||
| Forfeited | ( | |||||||
| Granted | ||||||||
| Options outstanding as of May 31, 2024 | $ | |||||||
SHARES(1) | WEIGHTED AVERAGE GRANT DATE FAIR VALUE | |||||||
| (In millions) | ||||||||
| Nonvested as of May 31, 2023 | $ | |||||||
| Vested | ( | |||||||
| Forfeited | ( | |||||||
| Granted | ||||||||
| Nonvested as of May 31, 2024 | $ | |||||||
| NOTE 10 — EARNINGS PER SHARE | ||
| YEAR ENDED MAY 31, | |||||||||||
(In millions, except per share data) | 2024 | 2023 | 2022 | ||||||||
| Net income available to common stockholders | $ | $ | $ | ||||||||
| Determination of shares: | |||||||||||
| Weighted average common shares outstanding | |||||||||||
| Assumed conversion of dilutive stock options and awards | |||||||||||
| DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | |||||||||||
| Earnings per common share: | |||||||||||
| Basic | $ | $ | $ | ||||||||
| Diluted | $ | $ | $ | ||||||||
| NOTE 11 — BENEFIT PLANS | ||
| NOTE 12 — RISK MANAGEMENT AND DERIVATIVES | ||
| DERIVATIVE ASSETS | |||||||||||
| BALANCE SHEET LOCATION | MAY 31, | ||||||||||
(Dollars in millions) | 2024 | 2023 | |||||||||
| Derivatives formally designated as hedging instruments: | |||||||||||
| Foreign exchange forwards and options | Prepaid expenses and other current assets | $ | $ | ||||||||
| Foreign exchange forwards and options | Deferred income taxes and other assets | $ | $ | ||||||||
| Total derivatives formally designated as hedging instruments | |||||||||||
| Derivatives not designated as hedging instruments: | |||||||||||
Foreign exchange forwards and options | Prepaid expenses and other current assets | ||||||||||
| Total derivatives not designated as hedging instruments | |||||||||||
| TOTAL DERIVATIVE ASSETS | $ | $ | |||||||||
| DERIVATIVE LIABILITIES | |||||||||||
| BALANCE SHEET LOCATION | MAY 31, | ||||||||||
(Dollars in millions) | 2024 | 2023 | |||||||||
| Derivatives formally designated as hedging instruments: | |||||||||||
| Foreign exchange forwards and options | Accrued liabilities | $ | $ | ||||||||
| Foreign exchange forwards and options | Deferred income taxes and other liabilities | ||||||||||
| Interest rate swaps | Deferred income taxes and other liabilities | ||||||||||
| Total derivatives formally designated as hedging instruments | |||||||||||
| Derivatives not designated as hedging instruments: | |||||||||||
Foreign exchange forwards and options | Accrued liabilities | ||||||||||
| Total derivatives not designated as hedging instruments | |||||||||||
| TOTAL DERIVATIVE LIABILITIES | $ | $ | |||||||||
(Dollars in millions) | AMOUNT OF GAIN (LOSS) RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) ON DERIVATIVES(1) | AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME(1) | |||||||||||||||||||||||||||
| YEAR ENDED MAY 31, | LOCATION OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME | YEAR ENDED MAY 31, | |||||||||||||||||||||||||||
| 2024 | 2023 | 2022 | 2024 | 2023 | 2022 | ||||||||||||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||||||||||||||
Foreign exchange forwards and options | $ | ( | $ | $ | ( | Revenues | $ | ( | $ | $ | ( | ||||||||||||||||||
Foreign exchange forwards and options | Cost of sales | ( | |||||||||||||||||||||||||||
Foreign exchange forwards and options | ( | ( | Demand creation expense | ( | |||||||||||||||||||||||||
Foreign exchange forwards and options | Other (income) expense, net | ||||||||||||||||||||||||||||
Interest rate swaps(2) | Interest expense (income), net | ( | ( | ( | |||||||||||||||||||||||||
Total designated cash flow hedges | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
AMOUNT OF GAIN (LOSS) RECOGNIZED IN INCOME ON DERIVATIVES | LOCATION OF GAIN (LOSS) RECOGNIZED IN INCOME ON DERIVATIVES | ||||||||||||||||
| YEAR ENDED MAY 31, | |||||||||||||||||
(Dollars in millions) | 2024 | 2023 | 2022 | ||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
| Foreign exchange forwards and options and embedded derivatives | $ | $ | $ | ||||||||||||||
| NOTE 13 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||
(Dollars in millions) | FOREIGN CURRENCY TRANSLATION ADJUSTMENT(1) | CASH FLOW HEDGES | NET INVESTMENT HEDGES(1) | OTHER | TOTAL | ||||||||||||
| Balance at May 31, 2023 | $ | ( | $ | $ | $ | ( | $ | ||||||||||
| Other comprehensive income (loss): | |||||||||||||||||
Other comprehensive gains (losses) before reclassifications(2) | ( | ||||||||||||||||
Reclassifications to net income of previously deferred (gains) losses(2)(3) | ( | ( | ( | ||||||||||||||
| Total other comprehensive income (loss) | ( | ( | ( | ||||||||||||||
| Balance at May 31, 2024 | $ | ( | $ | $ | $ | ( | $ | ||||||||||
(Dollars in millions) | FOREIGN CURRENCY TRANSLATION ADJUSTMENT(1) | CASH FLOW HEDGES | NET INVESTMENT HEDGES(1) | OTHER | TOTAL | ||||||||||||
| Balance at May 31, 2022 | $ | ( | $ | $ | $ | ( | $ | ||||||||||
| Other comprehensive income (loss): | |||||||||||||||||
Other comprehensive gains (losses) before reclassifications(2) | ( | ( | |||||||||||||||
Reclassifications to net income of previously deferred (gains) losses(2)(3) | ( | ( | |||||||||||||||
| Total other comprehensive income (loss) | ( | ( | ( | ||||||||||||||
| Balance at May 31, 2023 | $ | ( | $ | $ | $ | ( | $ | ||||||||||
| NOTE 14 — REVENUES | ||
| YEAR ENDED MAY 31, 2024 | |||||||||||||||||||||||||||||
(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 | $ | $ | $ | $ | $ | — | $ | $ | $ | — | $ | ||||||||||||||||||
| Apparel | — | — | |||||||||||||||||||||||||||
| Equipment | — | — | |||||||||||||||||||||||||||
| Other | ( | ||||||||||||||||||||||||||||
| TOTAL REVENUES | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||
| Revenues by: | |||||||||||||||||||||||||||||
| Sales to Wholesale Customers | $ | $ | $ | $ | $ | — | $ | $ | $ | — | $ | ||||||||||||||||||
| Sales through Direct to Consumer | — | — | |||||||||||||||||||||||||||
| Other | ( | ||||||||||||||||||||||||||||
| TOTAL REVENUES | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||
| 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 | $ | $ | $ | $ | $ | — | $ | $ | $ | — | $ | ||||||||||||||||||
| Apparel | — | — | |||||||||||||||||||||||||||
| Equipment | — | — | |||||||||||||||||||||||||||
| Other | |||||||||||||||||||||||||||||
| TOTAL REVENUES | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Revenues by: | |||||||||||||||||||||||||||||
| Sales to Wholesale Customers | $ | $ | $ | $ | $ | — | $ | $ | $ | — | $ | ||||||||||||||||||
| Sales through Direct to Consumer | — | — | |||||||||||||||||||||||||||
| Other | |||||||||||||||||||||||||||||
| TOTAL REVENUES | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| 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 | $ | $ | $ | $ | $ | — | $ | $ | $ | — | $ | ||||||||||||||||||
| Apparel | — | — | |||||||||||||||||||||||||||
| Equipment | — | — | |||||||||||||||||||||||||||
| Other | ( | ||||||||||||||||||||||||||||
| TOTAL REVENUES | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||
| Revenues by: | |||||||||||||||||||||||||||||
| Sales to Wholesale Customers | $ | $ | $ | $ | $ | — | $ | $ | $ | — | $ | ||||||||||||||||||
| Sales through Direct to Consumer | — | — | |||||||||||||||||||||||||||
| Other | ( | ||||||||||||||||||||||||||||
| TOTAL REVENUES | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||
| NOTE 15 — OPERATING SEGMENTS AND RELATED INFORMATION | ||
| YEAR ENDED MAY 31, | |||||||||||
(Dollars in millions) | 2024 | 2023 | 2022 | ||||||||
| REVENUES | |||||||||||
| North America | $ | $ | $ | ||||||||
| Europe, Middle East & Africa | |||||||||||
| Greater China | |||||||||||
| Asia Pacific & Latin America | |||||||||||
| Global Brand Divisions | |||||||||||
| Total NIKE Brand | |||||||||||
| Converse | |||||||||||
| Corporate | ( | ( | |||||||||
| TOTAL NIKE, INC. REVENUES | $ | $ | $ | ||||||||
| EARNINGS BEFORE INTEREST AND TAXES | |||||||||||
| North America | $ | $ | $ | ||||||||
| Europe, Middle East & Africa | |||||||||||
| Greater China | |||||||||||
| Asia Pacific & Latin America | |||||||||||
| Global Brand Divisions | ( | ( | ( | ||||||||
| Converse | |||||||||||
| Corporate | ( | ( | ( | ||||||||
| Interest expense (income), net | ( | ( | |||||||||
| TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES | $ | $ | $ | ||||||||
| ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT | |||||||||||
| North America | $ | $ | $ | ||||||||
| Europe, Middle East & Africa | |||||||||||
| Greater China | |||||||||||
| Asia Pacific & Latin America | |||||||||||
| Global Brand Divisions | |||||||||||
| Total NIKE Brand | |||||||||||
| Converse | |||||||||||
| Corporate | |||||||||||
| TOTAL ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT | $ | $ | $ | ||||||||
| DEPRECIATION | |||||||||||
| North America | $ | $ | $ | ||||||||
| Europe, Middle East & Africa | |||||||||||
| Greater China | |||||||||||
| Asia Pacific & Latin America | |||||||||||
| Global Brand Divisions | |||||||||||
| Total NIKE Brand | |||||||||||
| Converse | |||||||||||
| Corporate | |||||||||||
| TOTAL DEPRECIATION | $ | $ | $ | ||||||||
| AS OF MAY 31, | ||||||||
(Dollars in millions) | 2024 | 2023 | ||||||
| ACCOUNTS RECEIVABLE, NET | ||||||||
| North America | $ | $ | ||||||
| Europe, Middle East & Africa | ||||||||
| Greater China | ||||||||
Asia Pacific & Latin America | ||||||||
| Global Brand Divisions | ||||||||
| Total NIKE Brand | ||||||||
| Converse | ||||||||
| Corporate | ||||||||
| TOTAL ACCOUNTS RECEIVABLE, NET | $ | $ | ||||||
| INVENTORIES | ||||||||
| North America | $ | $ | ||||||
| Europe, Middle East & Africa | ||||||||
| Greater China | ||||||||
Asia Pacific & Latin America | ||||||||
| Global Brand Divisions | ||||||||
| Total NIKE Brand | ||||||||
| Converse | ||||||||
| Corporate | ||||||||
| TOTAL INVENTORIES | $ | $ | ||||||
| PROPERTY, PLANT AND EQUIPMENT, NET | ||||||||
| North America | $ | $ | ||||||
| Europe, Middle East & Africa | ||||||||
| Greater China | ||||||||
Asia Pacific & Latin America | ||||||||
| Global Brand Divisions | ||||||||
| Total NIKE Brand | ||||||||
| Converse | ||||||||
| Corporate | ||||||||
| TOTAL PROPERTY, PLANT AND EQUIPMENT, NET | $ | $ | ||||||
| MAY 31, | ||||||||
(Dollars in millions) | 2024 | 2023 | ||||||
| United States | $ | $ | ||||||
| Belgium | ||||||||
| China | ||||||||
Other | ||||||||
TOTAL LONG-LIVED ASSETS | $ | $ | ||||||
| NOTE 16 — COMMITMENTS AND CONTINGENCIES | ||
| NOTE 17 — LEASES | ||
(Dollars in millions) | AS OF MAY 31, 2024(1) | ||||
| Fiscal 2025 | $ | ||||
| Fiscal 2026 | |||||
| Fiscal 2027 | |||||
| Fiscal 2028 | |||||
| Fiscal 2029 | |||||
| Thereafter | |||||
| Total undiscounted future cash flows related to lease payments | $ | ||||
| Less interest | |||||
| Present value of lease liabilities | $ | ||||
| AS OF MAY 31, | ||||||||
| 2024 | 2023 | |||||||
| Weighted-average remaining lease term (in years) | ||||||||
| Weighted-average discount rate | % | % | ||||||
| YEAR ENDED MAY 31, | |||||||||||
(Dollars in millions) | 2024 | 2023 | 2022 | ||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
| Operating cash flows from operating leases | $ | $ | $ | ||||||||
| Operating lease right-of-use assets obtained in exchange for new operating lease liabilities | $ | $ | $ | ||||||||
| NOTE 18 — DIVESTITURES | ||
| NOTE 19 — RESTRUCTURING | ||
TWELVE MONTHS ENDED MAY 31, 2024 | |||||||||||||||||
(Dollars in millions) | OPERATING OVERHEAD EXPENSE | COST OF SALES | TOTAL | ||||||||||||||
Employee severance and related costs(1) | $ | $ | $ | ||||||||||||||
Stock-based compensation expense(2) | |||||||||||||||||
| Total pre-tax restructuring charges | $ | $ | $ | ||||||||||||||
(Dollars in millions) | |||||
| Balance at May 31, 2023 | $ | ||||
Employee severance and related costs | |||||
| Cash payments | ( | ||||
| Foreign currency translation and other | ( | ||||
| Balance at May 31, 2024 | $ | ||||
| (a) | The following documents are filed as part of this Annual Report: | |||||||
| FORM 10-K PAGE NO. | ||||||||
| 1. | Financial Statements: | |||||||
Report of Independent Registered Public Accounting Firm (PCAOB ID | ||||||||
Consolidated Statements of Income for each of the three years ended May 31, 2024, May 31, 2023, and May 31, 2022 | ||||||||
Consolidated Statements of Comprehensive Income for each of the three years ended May 31, 2024, May 31, 2023, and May 31, 2022 | ||||||||
Consolidated Balance Sheets at May 31, 2024 and May 31, 2023 | ||||||||
Consolidated Statements of Cash Flows for each of the three years ended May 31, 2024, May 31, 2023, and May 31, 2022 | ||||||||
Consolidated Statements of Shareholders' Equity for each of the three years ended May 31, 2024, May 31, 2023, and May 31, 2022 | ||||||||
| 2. | Financial Statement Schedule: | |||||||
II — Valuation and Qualifying Accounts for the years ended May 31, 2024, 2023 and 2022 | ||||||||
| All other schedules are omitted because they are not applicable or the required information is shown in the financial statements or notes thereto. | ||||||||
| 3. | Exhibits: | |||||||
| 3.1 | ||||||||
| 3.2 | ||||||||
| 4.1 | ||||||||
| 4.2 | ||||||||
| 4.3 | ||||||||
| 4.4 | ||||||||
| 4.5 | ||||||||
| 4.6 | ||||||||
| 4.7 | ||||||||
| 10.1 | ||||||||
| 10.2 | ||||||||
| 10.3 | ||||||||
| 10.4 | ||||||||
| 10.5 | |||||
| 10.6 | |||||
| 10.7 | |||||
| 10.8 | |||||
| 10.9 | |||||
| 10.10 | |||||
| 10.11 | |||||
| 10.12 | |||||
| 10.13 | |||||
| 10.14 | |||||
| 10.15 | |||||
| 10.16 | |||||
| 10.17 | |||||
| 10.18 | |||||
| 10.19 | |||||
| 10.20 | |||||
| 10.21 | |||||
| 10.22 | |||||
| 10.23 | |||||
| 10.24 | |||||
| 10.25 | Separation and Release Agreement between NIKE, Inc. and Andrew Campion dated January 3, 2024 (incorporated by reference to Exhibit 10.3 to the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended November 30, 2023).* | ||||
| 10.26 | |||||
| 10.27 | |||||
| 10.28 | |||||
| 19.1 | |||||
| 19.2 | |||||
| 21 | |||||
| 23 | |||||
| 31.1 | |||||
| 31.2 | |||||
| 32† | |||||
| 97 | |||||
| 101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||
| 101.SCH | Inline XBRL Taxonomy Extension Schema | ||||
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase | ||||
| 101.DEF | Inline XBRL Taxonomy Extension Definition Document | ||||
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase | ||||
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase | ||||
| 104 | Cover Page Interactive Data File - formatted in Inline XBRL and included in Exhibit 101 | ||||
| (Dollars in millions) | BALANCE AT BEGINNING OF PERIOD | CHARGED TO COSTS AND EXPENSES | CHARGED TO OTHER ACCOUNTS(1) | WRITE-OFFS, NET | BALANCE AT END OF PERIOD | ||||||||||||
| Sales returns reserve | |||||||||||||||||
| For the fiscal year ended May 31, 2022 | $ | $ | $ | ( | $ | ( | $ | ||||||||||
| For the fiscal year ended May 31, 2023 | ( | ( | |||||||||||||||
| For the fiscal year ended May 31, 2024 | ( | ( | |||||||||||||||
| NIKE, INC. | ||||||||
| By: | /s/ JOHN J. DONAHOE II John J. Donahoe II President and Chief Executive Officer | |||||||
| Date: | July 25, 2024 | |||||||
| SIGNATURE | TITLE | DATE | ||||||
| PRINCIPAL EXECUTIVE OFFICER AND DIRECTOR: | ||||||||
/s/ JOHN J. DONAHOE II John J. Donahoe II | President and Chief Executive Officer | July 25, 2024 | ||||||
| PRINCIPAL FINANCIAL OFFICER: | ||||||||
/s/ MATTHEW FRIEND Matthew Friend | Executive Vice President and Chief Financial Officer | July 25, 2024 | ||||||
| PRINCIPAL ACCOUNTING OFFICER: | ||||||||
/s/ JOHANNA NIELSEN Johanna Nielsen | Vice President and Corporate Controller | July 25, 2024 | ||||||
| DIRECTORS: | ||||||||
/s/ MARK G. PARKER Mark G. Parker | Director, Chairman of the Board | July 25, 2024 | ||||||
/s/ CATHLEEN A. BENKO Cathleen A. Benko | Director | July 25, 2024 | ||||||
/s/ TIMOTHY D. COOK Timothy D. Cook | Director | July 25, 2024 | ||||||
/s/ THASUNDA B. DUCKETT Thasunda B. Duckett | Director | July 25, 2024 | ||||||
/s/ MÓNICA GIL Mónica Gil | Director | July 25, 2024 | ||||||
/s/ ALAN B. GRAF, JR. Alan B. Graf, Jr. | Director | July 25, 2024 | ||||||
/s/ MARIA HENRY Maria Henry | Director | July 25, 2024 | ||||||
/s/ PETER B. HENRY Peter B. Henry | Director | July 25, 2024 | ||||||
/s/ TRAVIS A. KNIGHT Travis A. Knight | Director | July 25, 2024 | ||||||
/s/ MICHELLE A. PELUSO Michelle A. Peluso | Director | July 25, 2024 | ||||||
/s/ JOHN W. ROGERS, JR. John W. Rogers, Jr. | Director | July 25, 2024 | ||||||
/s/ ROBERT SWAN Robert Swan | Director | July 25, 2024 | ||||||

| Grant Terms | Grant Details | ||||
| Participant | %%FIRST_NAME%-% %%LAST_NAME%-% | ||||
| Type of Option | Non-Statutory Stock Options | ||||
| Shares | %%TOTAL_SHARES_GRANTED,’999,999,999’%-% | ||||
| Grant Date | %%OPTION_DATE,’Month DD, YYYY’%-% | ||||
| Exercise Price | %%OPTION_PRICE,’$999,999,999.99’%-% | ||||
| Expiration Date | %%EXPIRE_DATE_PERIOD1,’Month DD, YYYY’%-% | ||||
| Shares | Vesting Dates | ||||
| %%SHARES_PERIOD1,’999,999,999’%-% | %%VEST_DATE_PERIOD1,’MM/DD/YYYY’%-% | ||||
| %%SHARES_PERIOD2,’999,999,999’%-% | %%VEST_DATE_PERIOD2,’MM/DD/YYYY’%-% | ||||
| %%SHARES_PERIOD3,’999,999,999’%-% | %%VEST_DATE_PERIOD3,’MM/DD/YYYY’%-% | ||||
| %%SHARES_PERIOD4,’999,999,999’%-% | %%VEST_DATE_PERIOD4,’MM/DD/YYYY’%-% | ||||

| Grant Terms | Grant Details | ||||
| Participant | %%FIRST_NAME%-% %%LAST_NAME%-% | ||||
| RSUs | %%TOTAL_SHARES_GRANTED,’999,999,999’%-% | ||||
| Grant Date | %%RSU_DATE,'Month DD, YYYY'%-% | ||||
| Units | Vesting Dates | ||||
| %%SHARES_PERIOD1,’999,999,999’%-% | %%VEST_DATE_PERIOD1,’MM/DD/YYYY’%-% | ||||
| %%SHARES_PERIOD2,’999,999,999’%-% | %%VEST_DATE_PERIOD2,’MM/DD/YYYY’%-% | ||||
| %%SHARES_PERIOD3,’999,999,999’%-% | %%VEST_DATE_PERIOD3,’MM/DD/YYYY’%-% | ||||
| %%SHARES_PERIOD4,’999,999,999’%-% | %%VEST_DATE_PERIOD4,’MM/DD/YYYY’%-% | ||||

| Grant Terms | Grant Details | ||||
| Participant | [●] | ||||
| Target PSUs | [●] | ||||
| Grant Date | [●] | ||||


| Entity Name | Jurisdiction of Formation | ||||
| Converse Inc. | Delaware | ||||
| NIKE Commercial (China) Co., Ltd. | China | ||||
| NIKE de Mexico, S. de R.L. de C.V. | Mexico | ||||
| NIKE Europe Holding B.V. | Netherlands | ||||
| NIKE Global Trading B.V. | Netherlands | ||||
| NIKE Japan Group LLC | Japan | ||||
| NIKE Korea LLC | Korea | ||||
| NIKE Retail B.V. | Netherlands | ||||
| NIKE Retail Services, Inc. | Oregon | ||||
| NIKE Sport (China) Co., Ltd. | China | ||||
| NIKE Trading Company B.V. | Netherlands | ||||
| NIKE USA, Inc. | Oregon | ||||
Dated: | July 25, 2024 | |||||||
| /s/ John J. Donahoe II | ||||||||
| John J. Donahoe II | ||||||||
| Chief Executive Officer | ||||||||
| Dated: | July 25, 2024 | |||||||
| /s/ Matthew Friend | ||||||||
| Matthew Friend | ||||||||
| Chief Financial Officer | ||||||||
Dated: | July 25, 2024 | |||||||
| /s/ John J. Donahoe II | ||||||||
| John J. Donahoe II | ||||||||
| Chief Executive Officer | ||||||||
| Dated: | July 25, 2024 | |||||||
| /s/ Matthew Friend | ||||||||
| Matthew Friend | ||||||||
| Chief Financial Officer | ||||||||
Audit Information |
12 Months Ended |
|---|---|
May 31, 2024 | |
| Audit Information [Abstract] | |
| Auditor Name | PricewaterhouseCoopers LLP |
| Auditor Location | Portland, Oregon |
| Auditor Firm ID | 238 |
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions |
12 Months Ended | ||
|---|---|---|---|
May 31, 2024 |
May 31, 2023 |
May 31, 2022 |
|
| Income Statement [Abstract] | |||
| Revenues | $ 51,362 | $ 51,217 | $ 46,710 |
| Cost of sales | 28,475 | 28,925 | 25,231 |
| Gross profit | 22,887 | 22,292 | 21,479 |
| Demand creation expense | 4,285 | 4,060 | 3,850 |
| Operating overhead expense | 12,291 | 12,317 | 10,954 |
| Total selling and administrative expense | 16,576 | 16,377 | 14,804 |
| Interest expense (income), net | (161) | (6) | 205 |
| Other (income) expense, net | (228) | (280) | (181) |
| Income before income taxes | 6,700 | 6,201 | 6,651 |
| Income tax expense | 1,000 | 1,131 | 605 |
| NET INCOME | $ 5,700 | $ 5,070 | $ 6,046 |
| Earnings per common share: | |||
| Basic (in dollars per share) | $ 3.76 | $ 3.27 | $ 3.83 |
| Diluted (in dollars per share) | $ 3.73 | $ 3.23 | $ 3.75 |
| Weighted average common shares outstanding: | |||
| Basic (in shares) | 1,517.6 | 1,551.6 | 1,578.8 |
| Diluted (in shares) | 1,529.7 | 1,569.8 | 1,610.8 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
May 31, 2024 |
May 31, 2023 |
May 31, 2022 |
|
| Statement of Comprehensive Income [Abstract] | |||
| Net income | $ 5,700 | $ 5,070 | $ 6,046 |
| Other comprehensive income (loss), net of tax: | |||
| Change in net foreign currency translation adjustment | (3) | 267 | (522) |
| Change in net gains (losses) on cash flow hedges | (184) | (348) | 1,214 |
| Change in net gains (losses) on other | 9 | (6) | 6 |
| Total other comprehensive income (loss), net of tax | (178) | (87) | 698 |
| TOTAL COMPREHENSIVE INCOME | $ 5,522 | $ 4,983 | $ 6,744 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares shares in Millions |
May 31, 2024 |
May 31, 2023 |
|---|---|---|
| Class A Convertible Common Stock | ||
| Shareholders' equity: | ||
| Common stock, outstanding (in shares) | 298 | 305 |
| Class B Common Stock | ||
| Shareholders' equity: | ||
| Common stock, outstanding (in shares) | 1,205 | 1,227 |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares |
12 Months Ended | ||
|---|---|---|---|
May 31, 2024 |
May 31, 2023 |
May 31, 2022 |
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| Statement of Stockholders' Equity [Abstract] | |||
| Dividends declared per common share (in dollars per share) | $ 1.450 | $ 1.325 | $ 1.190 |
| Dividends declared per preferred share (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.10 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
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May 31, 2024 | |||||||
| Accounting Policies [Abstract] | |||||||
| 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. 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. 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 $4,285 million, $4,060 million and $3,850 million for the years ended May 31, 2024, 2023 and 2022, respectively. Prepaid advertising and promotion expenses totaled $814 million and $755 million at May 31, 2024 and 2023, respectively, of which $420 million and $372 million, respectively, were recorded in Prepaid expenses and other current assets, and $394 million and $383 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, 2024 and 2023, 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 as of May 31, 2024 and 2023. 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 immaterial impairment losses as of May 31, 2024, and no accumulated impairment losses as of May 31, 2023. Additionally, the impact to Goodwill as a result of acquisitions and divestitures during fiscal 2024 and 2023, was immaterial. 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 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 consolidated 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. RECENTLY ISSUED ACCOUNTING STANDARDS AND DISCLOSURE RULES In November 2023, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses. The amendments will require public entities to disclose significant segment expenses that are regularly provided to the chief operating decision maker and included within segment profit and loss. The amendments are effective for the Company's annual periods beginning June 1, 2024, and interim periods beginning June 1, 2025, with early adoption permitted, and will be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the ASU to determine its impact on the Company's disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The amendments are effective for the Company's annual periods beginning June 1, 2025, with early adoption permitted, and should be applied either prospectively or retrospectively. The Company is currently evaluating the ASU to determine its impact on the Company's disclosures. In March 2024, the U.S. Securities and Exchange Commission ("SEC") adopted the final rule under SEC Release No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors. This rule will require registrants to disclose certain climate-related information in registration statements and annual reports. In April 2024, the SEC voluntarily stayed the final rule as a result of pending legal challenges. The disclosure requirements will apply to the Company's fiscal year beginning June 1, 2025, pending resolution of the stay. The Company is currently evaluating the final rule to determine its impact on the Company's disclosures. RECENTLY ADOPTED ACCOUNTING STANDARDS In September 2022, the FASB issued ASU 2022-04, Liabilities — Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. 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 Company adopted the required guidance in the first quarter of fiscal 2024. Certain financial institutions offer voluntary supplier finance programs facilitated through a third-party platform that provide participating suppliers the option to finance valid payment obligations from the Company. The Company is not a party to agreements negotiated between participating suppliers and third-party financial institutions. The Company's obligations to its suppliers, including amounts due and payment terms, are not affected by a supplier's decision to participate in these programs and the Company does not provide guarantees to third parties in connection with these programs. As of May 31, 2024 and May 31, 2023, the Company had $840 million and $834 million, respectively, of outstanding confirmed as valid under these programs. These amounts are included within Accounts payable on the Consolidated Balance Sheets.
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| PROPERTY, PLANT AND EQUIPMENT |
Property, plant and equipment, net included the following:
Capitalized interest was not material for the fiscal years ended May 31, 2024, 2023 and 2022.
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ACCRUED LIABILITIES |
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| ACCRUED LIABILITIES |
Accrued liabilities included the following:
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| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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, 2024 and 2023, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement.
As of May 31, 2024, the Company held $1,002 million of available-for-sale debt securities with maturity dates within one year and $720 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 $430 million, $297 million and $94 million for the years ended May 31, 2024, 2023 and 2022, 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 additional 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:
(1)If the foreign exchange and interest rate swap derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $142 million as of May 31, 2024. As of that date, the Company received $112 million of cash collateral from various counterparties on the derivative asset balance and posted $10 million cash collateral on the derivative liability balance.
(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 had received $36 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, 2023. 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.
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SHORT-TERM BORROWINGS AND CREDIT LINES |
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May 31, 2024 | |||||||
| Debt Disclosure [Abstract] | |||||||
| SHORT-TERM BORROWINGS AND CREDIT LINES |
The carrying amounts reflected on 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. 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 0.04% of the total undrawn commitment. On March 8, 2024, 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 7, 2025, 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 10, 2023, which matured on March 8, 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 0.02% of the total undrawn commitment. As of and for the periods ended May 31, 2024 and 2023, no amounts were outstanding under any of the Company's committed credit facilities.
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LONG-TERM DEBT |
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May 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LONG-TERM DEBT |
Long-term debt, net of unamortized premiums, discounts, and debt issuance costs, and swap fair value adjustments comprises the following:
(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, which can range from one to six months prior to the scheduled maturity, as defined in the respective notes. (3)The Company entered into interest rate swap agreements pursuant to which the Company receives fixed interest payments at the same rate as the term debt and pays variable interest payments based on SOFR plus a fixed spread. At May 31, 2024, the notional amount outstanding of these swaps was $1.8 billion and had interest rates payable that ranged from 4.6% to 5.1%. These swaps mature during fiscal 2034. The scheduled maturity of Long-term debt in each of the years ending May 31, 2025 through 2029, are $1,000 million, $0 million, $2,000 million, $0 million and $0 million, respectively, at face value. The Company's Long-term debt is recorded at adjusted cost, net of unamortized premiums, discounts, and debt issuance costs, and swap fair value adjustments. The fair value of long-term debt is estimated based upon quoted prices for similar instruments or quoted prices for identical instruments in inactive markets (Level 2). The fair value of the Company's Long-term debt, including the current portion, was approximately $7,631 million and $7,889 million as of May 31, 2024 and 2023, respectively.
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INCOME TAXES |
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May 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INCOME TAXES |
Income before income taxes is as follows:
The provision for income taxes is as follows:
A reconciliation from the U.S. statutory federal income tax rate to the effective income tax rate is as follows:
The effective tax rate for the fiscal year ended May 31, 2024 was lower than the effective tax rate for the fiscal year ended May 31, 2023. The decrease in the Company's effective tax rate was primarily due to changes in the Company's earning mix and one-time benefits including the impact of temporary relief provided by the Internal Revenue Service ("IRS") relating to U.S. foreign tax credit regulations. On July 21, 2023, the IRS issued Notice 2023-55 which specifically delayed the application of certain U.S. foreign tax credit regulations that had previously limited the Company's ability to claim credits on certain foreign taxes for the fiscal year ended May 31, 2023. As a result of this new guidance, the Company recognized a one-time tax benefit related to prior year tax positions in the first three months of fiscal 2024. 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 recognition of a non-cash, one-time benefit related to the onshoring of the Company's non-U.S. intangible property in fiscal 2022. 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. On August 16, 2022, the U.S. government enacted the Inflation Reduction Act of 2022 that included, among other provisions, changes to the U.S. corporate income tax system, including a fifteen percent minimum tax based on "adjusted financial statement income," which was effective for the Company beginning June 1, 2023. Based on the Company's current analysis of the provisions, these tax law changes did not have a material impact on the Company's Consolidated Financial Statements for fiscal 2024. Deferred income tax assets and liabilities comprise the following as of:
(1)Of the total $2,320 million net deferred tax asset for the period ended May 31, 2024, $2,465 million was included within Deferred income taxes and other assets and $(145) million was included within Deferred income taxes and other liabilities on the Consolidated Balance Sheets. 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. Deferred tax assets as of May 31, 2024 and 2023, were reduced by a valuation allowance. For the fiscal years ended May 31, 2024 and 2023, a valuation allowance was provided for U.S. capital loss carryforwards and on tax benefits generated by certain entities with operating losses. The following is a reconciliation of the changes in the gross balance of unrecognized tax benefits as of:
As of May 31, 2024, total gross unrecognized tax benefits, excluding related interest and penalties, were $990 million, of which $699 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. As of May 31, 2024 and 2023, accrued interest and penalties related to uncertain tax positions were $332 million and $268 million, respectively (excluding federal benefit) and were included within Deferred income taxes and other liabilities on the Consolidated Balance Sheets. As of May 31, 2024 and 2023, long-term income taxes payable unrelated to unrecognized tax benefits were $266 million and $373 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 $35 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 $338 million, $263 million and $221 million for the fiscal years ended May 31, 2024, 2023 and 2022, respectively. The benefit of the tax holiday on diluted earnings per common share, before taking into consideration other U.S. indirect tax provisions, was $0.22, $0.17 and $0.14 for the fiscal years ended May 31, 2024, 2023 and 2022, respectively.
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REDEEMABLE PREFERRED STOCK |
12 Months Ended | ||||||
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May 31, 2024 | |||||||
| Temporary Equity Disclosure [Abstract] | |||||||
| 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, 2024, 2023 and 2022. 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.
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COMMON STOCK AND STOCK-BASED COMPENSATION |
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| Share-Based Payment Arrangement, Noncash Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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:
(1)Expense for stock options includes the expense associated with stock appreciation rights. (2)For the fiscal years ended May 31, 2024, 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 $35 million, $71 million and $327 million for the fiscal years ended May 31, 2024, 2023 and 2022, respectively, and reported within Income tax expense. STOCK OPTIONS The weighted average fair value per share of stock options granted during the fiscal years ended May 31, 2024, 2023 and 2022, computed as of the grant date using the Black-Scholes pricing model, was $32.78, $31.31 and $37.53, respectively. The weighted average assumptions used to estimate these fair values were as follows:
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:
(1)Includes stock appreciation rights transactions. Options exercisable as of May 31, 2024 were 48.9 million and had a weighted average option price of $89.88 per share. The aggregate intrinsic value for options outstanding and exercisable as of May 31, 2024 was $732 million and $732 million, respectively. The total intrinsic value of the options exercised during the years ended May 31, 2024, 2023 and 2022 was $305 million, $438 million and $1,742 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, 2024 was 5.5 years and 4.1 years, respectively. As of May 31, 2024, the Company had $389 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 3.1 million, 3.0 million and 2.0 million shares during each of the fiscal years ended May 31, 2024, 2023 and 2022, 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:
(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, 2024, 2023 and 2022, computed as of the grant date, was $103.13, $115.56 and $168.04, respectively. During the fiscal years ended May 31, 2024, 2023 and 2022, the aggregate fair value of vested restricted stock and restricted stock units was $340 million, $250 million and $354 million, respectively, computed as of the date of vesting. As of May 31, 2024, the Company had $594 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 2.4 years.
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EARNINGS PER SHARE |
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| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 exclude restricted stock, restricted stock units and options, including shares under ESPPs, to purchase an estimated additional 41.0 million, 31.7 million and 9.4 million shares of common stock outstanding for the fiscal years ended May 31, 2024, 2023 and 2022, respectively, because the awards were assumed to be anti-dilutive.
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BENEFIT PLANS |
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| Retirement Benefits [Abstract] | |||||||
| 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 $153 million, $136 million and $126 million and included in Cost of sales or Operating overhead expense, as applicable, for the fiscal years ended May 31, 2024, 2023 and 2022, respectively. 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 $1,037 million and $875 million as of May 31, 2024 and 2023, 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 $1,063 million and $897 million as of May 31, 2024 and 2023, respectively, and primarily classified in Deferred income taxes and other liabilities on the Consolidated Balance Sheets.
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RISK MANAGEMENT AND DERIVATIVES |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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, 2024, 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:
The following tables present the amounts affecting the Consolidated Statements of Income for the years ended May 31, 2024, 2023 and 2022:
(1)For the fiscal years ended May 31, 2024, 2023, and 2022, 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.
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 $16.2 billion and $18.2 billion as of May 31, 2024 and 2023, respectively. As of May 31, 2024, approximately $231 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, 2024, the maximum term over which the Company hedges exposures to the variability of cash flows for its forecasted transactions was 24 months. FAIR VALUE HEDGES The Company is 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 which are designated as fair value hedges of the related long-term debt. Changes in the fair values of the interest rate swaps are recorded in Long-term debt or Current portion of long-term debt. The total notional amount of outstanding interest rate swaps designated as fair value hedges was $1.8 billion as of May 31, 2024. The Company had no outstanding 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, 2024 and 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 $4.4 billion and $4.7 billion as of May 31, 2024 and 2023, respectively. 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 fair value of outstanding derivatives per counterparty. For certain counterparties, collateral would only be posted for the fair value of outstanding derivatives per counterparty greater than $50 million. Additionally, for those counterparties, a certain level of decline in credit rating of either the Company or the counterparty could trigger collateral requirements. As of May 31, 2024, the Company was in compliance with all credit risk-related contingent features. 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.
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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
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| Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
The changes in Accumulated other comprehensive income (loss), net of tax, were as follows:
(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 immaterial tax impact. (3)Reclassifications to net income of previously deferred (gains) losses are recorded within Other (income) expense, net for foreign currency translation adjustment, net investment hedges, and other.
(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 immaterial tax impact. (3)Reclassifications to net income of previously deferred (gains) losses are recorded within Other (income) expense, net for foreign currency translation adjustment, net investment hedges, and other. For additional information related to the Company's cash flow hedges refer to Note 12 — Risk Management and Derivatives.
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REVENUES |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| REVENUES |
DISAGGREGATION OF REVENUES The following tables present the Company's Revenues disaggregated by reportable operating segment, major product line and distribution channel:
(1)Refer to Note 18 — Divestitures for additional information on the transition of the Company's NIKE Brand businesses in its CASA territory to third-party distributors.
Global Brand Divisions revenues included 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, 2024 and 2023, 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, 2024 and 2023, the Company's sales-related reserve balance, which includes returns, post-invoice sales discounts and miscellaneous claims, was $1,282 million and $994 million, respectively, recorded in Accrued liabilities on the Consolidated Balance Sheets. The estimated cost of inventory for expected product returns was $331 million and $226 million as of May 31, 2024 and 2023, respectively, and was recorded in Prepaid expenses and other current assets on the Consolidated Balance Sheets.
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OPERATING SEGMENTS AND RELATED INFORMATION |
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| Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OPERATING SEGMENTS AND RELATED INFORMATION |
The Company's operating segments reflect 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 — 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.
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 similar to that as reported above for the NIKE Brand operating segments with the exception of the United States. Revenues derived in the United States were $21,551 million, $22,007 million and $18,749 million for the fiscal years ended May 31, 2024, 2023 and 2022, 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:
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COMMITMENTS AND CONTINGENCIES |
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May 31, 2024 | |||||||
| Commitments and Contingencies Disclosure [Abstract] | |||||||
| COMMITMENTS AND CONTINGENCIES |
As of May 31, 2024 and 2023, the Company had bank guarantees and letters of credit outstanding totaling $768 million and $588 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
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LEASES |
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May 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LEASES |
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:
(1)Excludes $614 million as of May 31, 2024, 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:
The following table includes supplemental cash and non-cash information related to operating leases:
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DIVESTITURES |
12 Months Ended | ||||||
|---|---|---|---|---|---|---|---|
May 31, 2024 | |||||||
| Business Combination and Asset Acquisition [Abstract] | |||||||
| DIVESTITURES |
During the second quarter of fiscal 2023, the sale of the Company's entities in Argentina and Uruguay to a third-party distributor was completed 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.
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RESTRUCTURING |
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May 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RESTRUCTURING |
During the third quarter of fiscal 2024, the Company announced a multi-year enterprise initiative designed to accelerate its future growth. As part of this initiative, management has taken steps to streamline the organization which resulted in a net reduction in the Company's global workforce. As of May 31, 2024, the Company expects to recognize pre-tax restructuring charges of approximately $450 million, primarily associated with employee severance costs and accelerated stock-based compensation expense, the majority of which were recognized in fiscal 2024. The related cash payments are expected to be substantially complete by the end of the first half of fiscal 2025. The expected pre-tax charges are estimates and are subject to a number of assumptions and actual results may vary from the estimates provided. Pre-tax restructuring charges were classified within Corporate as follows:
(1)Employee severance costs are recognized when a future related expense is considered probable and reasonably estimable. (2)Non-cash restructuring related stock-based compensation expense is accelerated over the requisite service period, which for certain impacted employees will extend through the first half of fiscal 2025. As of May 31, 2024, the majority of the remaining employee severance and related costs are reflected within Accrued liabilities on the Consolidated Balance Sheets, classified within Other in Note 3 — Accrued Liabilities. The related activity is as follows:
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Schedule II - Valuation and Qualifying Accounts |
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May 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SCHEDULE II - Valuation and Qualifying Accounts | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS
(1)Amounts included in this column primarily relate to foreign currency translation.
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Pay vs Performance Disclosure - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
May 31, 2024 |
May 31, 2023 |
May 31, 2022 |
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| Pay vs Performance Disclosure | |||
| Net income | $ 5,700 | $ 5,070 | $ 6,046 |
Insider Trading Arrangements |
3 Months Ended |
|---|---|
May 31, 2024 | |
| Trading Arrangements, by Individual | |
| Rule 10b5-1 Arrangement Adopted | false |
| Non-Rule 10b5-1 Arrangement Adopted | false |
| Rule 10b5-1 Arrangement Terminated | false |
| Non-Rule 10b5-1 Arrangement Terminated | false |
Insider Trading Policies and Procedures |
12 Months Ended |
|---|---|
May 31, 2024 | |
| Insider Trading Policies and Procedures [Line Items] | |
| Insider Trading Policies and Procedures Adopted | true |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
12 Months Ended |
|---|---|
May 31, 2024 | |
| Accounting Policies [Abstract] | |
| 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. |
| 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.
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| 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.
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| 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.
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| 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.
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| 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.
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| 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.
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| SHORT-TERM INVESTMENTS | Short-term investments consist of highly liquid investments with maturities over three months at the date of purchase. At May 31, 2024 and 2023, 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.
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| 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. |
| 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.
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| 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.
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| 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.
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| 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.
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| 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.
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| 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.
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| 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.
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| 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.
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| 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.
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| 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. |
| 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. 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.
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| 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 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 consolidated 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.
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| 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.
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| RECENTLY ISSUED ACCOUNTING STANDARDS AND DISCLOSURE RULES AND RECENTLY ADOPTED ACCOUNTING STANDARDS | In November 2023, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses. The amendments will require public entities to disclose significant segment expenses that are regularly provided to the chief operating decision maker and included within segment profit and loss. The amendments are effective for the Company's annual periods beginning June 1, 2024, and interim periods beginning June 1, 2025, with early adoption permitted, and will be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the ASU to determine its impact on the Company's disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The amendments are effective for the Company's annual periods beginning June 1, 2025, with early adoption permitted, and should be applied either prospectively or retrospectively. The Company is currently evaluating the ASU to determine its impact on the Company's disclosures. In March 2024, the U.S. Securities and Exchange Commission ("SEC") adopted the final rule under SEC Release No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors. This rule will require registrants to disclose certain climate-related information in registration statements and annual reports. In April 2024, the SEC voluntarily stayed the final rule as a result of pending legal challenges. The disclosure requirements will apply to the Company's fiscal year beginning June 1, 2025, pending resolution of the stay. The Company is currently evaluating the final rule to determine its impact on the Company's disclosures. In September 2022, the FASB issued ASU 2022-04, Liabilities — Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. 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 Company adopted the required guidance in the first quarter of fiscal 2024. Certain financial institutions offer voluntary supplier finance programs facilitated through a third-party platform that provide participating suppliers the option to finance valid payment obligations from the Company. The Company is not a party to agreements negotiated between participating suppliers and third-party financial institutions. The Company's obligations to its suppliers, including amounts due and payment terms, are not affected by a supplier's decision to participate in these programs and the Company does not provide guarantees to third parties in connection with these programs.
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| HEDGING DERIVATIVES | 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 Company is 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 which are designated as fair value hedges of the related long-term debt. Changes in the fair values of the interest rate swaps are recorded in Long-term debt or Current portion of long-term debt. 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.
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| 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. |
PROPERTY, PLANT AND EQUIPMENT (Tables) |
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May 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Property, Plant and Equipment, Net | Property, plant and equipment, net included the following:
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ACCRUED LIABILITIES (Tables) |
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May 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accrued Liabilities, Current [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Accrued Liabilities | Accrued liabilities included the following:
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FAIR VALUE MEASUREMENTS (Tables) |
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May 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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, 2024 and 2023, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement.
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| 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:
(1)If the foreign exchange and interest rate swap derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $142 million as of May 31, 2024. As of that date, the Company received $112 million of cash collateral from various counterparties on the derivative asset balance and posted $10 million cash collateral on the derivative liability balance.
(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 had received $36 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, 2023. The following tables present the fair values of derivative instruments included within the Consolidated Balance Sheets:
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LONG-TERM DEBT (Tables) |
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May 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Long-term Debt Instruments | Long-term debt, net of unamortized premiums, discounts, and debt issuance costs, and swap fair value adjustments comprises the following:
(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, which can range from one to six months prior to the scheduled maturity, as defined in the respective notes. (3)The Company entered into interest rate swap agreements pursuant to which the Company receives fixed interest payments at the same rate as the term debt and pays variable interest payments based on SOFR plus a fixed spread. At May 31, 2024, the notional amount outstanding of these swaps was $1.8 billion and had interest rates payable that ranged from 4.6% to 5.1%. These swaps mature during fiscal 2034.
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INCOME TAXES (Tables) |
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May 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Income before Income Tax, Domestic and Foreign | Income before income taxes is as follows:
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| Schedule of Components of Income Tax Expense | The provision for income taxes is as follows:
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| 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:
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| Schedule of Deferred Income Tax Assets and Liabilities | Deferred income tax assets and liabilities comprise the following as of:
(1)Of the total $2,320 million net deferred tax asset for the period ended May 31, 2024, $2,465 million was included within Deferred income taxes and other assets and $(145) million was included within Deferred income taxes and other liabilities on the Consolidated Balance Sheets. 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.
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| Unrecognized Tax Benefits Reconciliation | The following is a reconciliation of the changes in the gross balance of unrecognized tax benefits as of:
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COMMON STOCK AND STOCK-BASED COMPENSATION (Tables) |
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May 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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:
(1)Expense for stock options includes the expense associated with stock appreciation rights. (2)For the fiscal years ended May 31, 2024, 2023 and 2022, expense for restricted stock units includes an immaterial amount of expense for PSUs.
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| Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The weighted average assumptions used to estimate these fair values were as follows:
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| Schedule of Share-based Compensation, Stock Options, Activity | The following summarizes the stock option transactions under the plan discussed above:
(1)Includes stock appreciation rights transactions.
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| 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:
(1) Includes an immaterial amount of PSU transactions
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EARNINGS PER SHARE (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| 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 exclude restricted stock, restricted stock units and options, including shares under ESPPs, to purchase an estimated additional 41.0 million, 31.7 million and 9.4 million shares of common stock outstanding for the fiscal years ended May 31, 2024, 2023 and 2022, respectively, because the awards were assumed to be anti-dilutive.
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RISK MANAGEMENT AND DERIVATIVES (Tables) |
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| 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:
(1)If the foreign exchange and interest rate swap derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $142 million as of May 31, 2024. As of that date, the Company received $112 million of cash collateral from various counterparties on the derivative asset balance and posted $10 million cash collateral on the derivative liability balance.
(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 had received $36 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, 2023. The following tables present the fair values of derivative instruments included within the Consolidated Balance Sheets:
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| 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, 2024, 2023 and 2022:
(1)For the fiscal years ended May 31, 2024, 2023, and 2022, 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.
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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) |
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| 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:
(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 immaterial tax impact. (3)Reclassifications to net income of previously deferred (gains) losses are recorded within Other (income) expense, net for foreign currency translation adjustment, net investment hedges, and other.
(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 immaterial tax impact. (3)Reclassifications to net income of previously deferred (gains) losses are recorded within Other (income) expense, net for foreign currency translation adjustment, net investment hedges, and other.
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REVENUES (Tables) |
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| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Disaggregation of Revenue | The following tables present the Company's Revenues disaggregated by reportable operating segment, major product line and distribution channel:
(1)Refer to Note 18 — Divestitures for additional information on the transition of the Company's NIKE Brand businesses in its CASA territory to third-party distributors.
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OPERATING SEGMENTS AND RELATED INFORMATION (Tables) |
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May 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Segment Reporting Information, by Segment |
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| Reconciliation of Assets from Segment to Consolidated |
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| 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:
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LEASES (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of 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:
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| Schedule of Lease, Cost | The following table includes supplemental information used to calculate the present value of Operating lease liabilities:
The following table includes supplemental cash and non-cash information related to operating leases:
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RESTRUCTURING (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedules of Restructuring and Related Costs | Pre-tax restructuring charges were classified within Corporate as follows:
(1)Employee severance costs are recognized when a future related expense is considered probable and reasonably estimable. (2)Non-cash restructuring related stock-based compensation expense is accelerated over the requisite service period, which for certain impacted employees will extend through the first half of fiscal 2025. As of May 31, 2024, the majority of the remaining employee severance and related costs are reflected within Accrued liabilities on the Consolidated Balance Sheets, classified within Other in Note 3 — Accrued Liabilities. The related activity is as follows:
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PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions |
May 31, 2024 |
May 31, 2023 |
|---|---|---|
| Property, Plant and Equipment [Line Items] | ||
| Total property, plant and equipment, gross | $ 10,914 | $ 10,715 |
| Less accumulated depreciation | 5,914 | 5,634 |
| TOTAL PROPERTY, PLANT AND EQUIPMENT, NET | 5,000 | 5,081 |
| Land and improvements | ||
| Property, Plant and Equipment [Line Items] | ||
| Total property, plant and equipment, gross | 329 | 326 |
| Buildings | ||
| Property, Plant and Equipment [Line Items] | ||
| Total property, plant and equipment, gross | 3,439 | 3,293 |
| Machinery and equipment | ||
| Property, Plant and Equipment [Line Items] | ||
| Total property, plant and equipment, gross | 3,123 | 3,083 |
| Internal-use software | ||
| Property, Plant and Equipment [Line Items] | ||
| Total property, plant and equipment, gross | 1,807 | 1,612 |
| Leasehold improvements | ||
| Property, Plant and Equipment [Line Items] | ||
| Total property, plant and equipment, gross | 2,023 | 1,876 |
| Construction in process | ||
| Property, Plant and Equipment [Line Items] | ||
| Total property, plant and equipment, gross | $ 193 | $ 525 |
ACCRUED LIABILITIES (Details) - USD ($) $ in Millions |
May 31, 2024 |
May 31, 2023 |
|---|---|---|
| Accrued Liabilities, Current [Abstract] | ||
| Compensation and benefits, excluding taxes | $ 1,291 | $ 1,737 |
| Sales-related reserves | 1,282 | 994 |
| Endorsement compensation | 578 | 552 |
| Dividends payable | 563 | 529 |
| Other | 2,011 | 1,911 |
| Total Accrued Liabilities | $ 5,725 | $ 5,723 |
FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
May 31, 2024 |
May 31, 2023 |
May 31, 2022 |
|
| Fair Value Disclosures [Abstract] | |||
| Available-for-sale securities with maturity dates within one year from purchase date | $ 1,002 | ||
| Available-for-sale securities with maturity dates over one year and less than five years from purchase date | 720 | ||
| Interest income related to cash and equivalents and short-term investments | $ 430 | $ 297 | $ 94 |
LONG-TERM DEBT - Additional Information (Details) - USD ($) $ in Millions |
May 31, 2024 |
May 31, 2023 |
|---|---|---|
| Debt Instrument [Line Items] | ||
| Maturity of long-term debt next fiscal year | $ 1,000 | |
| Maturity of long-term debt in year two | 0 | |
| Maturity of long-term debt in year three | 2,000 | |
| Maturity of long-term debt in year four | 0 | |
| Maturity of long-term debt in year five | 0 | |
| Fair Value, Inputs, Level 2 | ||
| Debt Instrument [Line Items] | ||
| Fair value of long term debt | $ 7,631 | $ 7,889 |
INCOME TAXES - Income before Income Taxes (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
May 31, 2024 |
May 31, 2023 |
May 31, 2022 |
|
| Income before income taxes: | |||
| United States | $ 5,588 | $ 4,663 | $ 6,020 |
| Foreign | 1,112 | 1,538 | 631 |
| Income before income taxes | $ 6,700 | $ 6,201 | $ 6,651 |
INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
May 31, 2024 |
May 31, 2023 |
May 31, 2022 |
|
| Current: | |||
| Federal | $ 782 | $ 430 | $ 231 |
| State | 201 | 184 | 98 |
| Foreign | 514 | 634 | 926 |
| Total Current | 1,497 | 1,248 | 1,255 |
| Deferred: | |||
| Federal | (422) | (162) | (522) |
| State | (61) | (25) | (16) |
| Foreign | (14) | 70 | (112) |
| Total Deferred | (497) | (117) | (650) |
| TOTAL INCOME TAX EXPENSE | $ 1,000 | $ 1,131 | $ 605 |
INCOME TAXES - Reconciliation from United States Statutory Federal Income Tax Rate to Effective Income Tax Rate (Details) |
12 Months Ended | ||
|---|---|---|---|
May 31, 2024 |
May 31, 2023 |
May 31, 2022 |
|
| Income Tax Disclosure [Abstract] | |||
| Federal income tax rate | 21.00% | 21.00% | 21.00% |
| State taxes, net of federal benefit | 1.40% | 1.50% | 1.40% |
| Foreign earnings | (2.50%) | 1.70% | (1.80%) |
| Subpart F deferred tax benefit | 0.00% | 0.00% | (4.70%) |
| Foreign-derived intangible income benefit | (4.80%) | (6.10%) | (4.10%) |
| Excess tax benefits from stock-based compensation | (0.50%) | (1.10%) | (4.90%) |
| Income tax audits and contingency reserves | 1.80% | 1.00% | 1.50% |
| U.S. research and development tax credit | (2.10%) | (1.20%) | (1.00%) |
| Other, net | 0.60% | 1.40% | 1.70% |
| EFFECTIVE INCOME TAX RATE | 14.90% | 18.20% | 9.10% |
INCOME TAXES - Reconciliation of Changes in Gross Balance of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
May 31, 2024 |
May 31, 2023 |
May 31, 2022 |
|
| Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
| Unrecognized tax benefits, beginning of the period | $ 936 | $ 848 | $ 896 |
| Gross increases related to prior period tax positions | 35 | 95 | 71 |
| Gross decreases related to prior period tax positions | (13) | (17) | (145) |
| Gross increases related to current period tax positions | 77 | 50 | 62 |
| Settlements | (22) | (18) | (17) |
| Lapse of statute of limitations | (24) | (7) | (10) |
| Changes due to currency translation | 1 | ||
| Changes due to currency translation | (15) | (9) | |
| UNRECOGNIZED TAX BENEFITS, END OF THE PERIOD | $ 990 | $ 936 | $ 848 |
REDEEMABLE PREFERRED STOCK (Details) - Non-marketable preferred stock $ / shares in Units, $ in Millions |
12 Months Ended |
|---|---|
|
May 31, 2024
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 COMPENSATION - Total Stock-Based Compensation Expense (Details) - Class B Common Stock - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
May 31, 2024 |
May 31, 2023 |
May 31, 2022 |
|
| Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
| Stock-based compensation expense | $ 804 | $ 755 | $ 638 |
| Stock options | |||
| Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
| Stock-based compensation expense | 336 | 311 | 297 |
| ESPPs | |||
| Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
| Stock-based compensation expense | 69 | 72 | 60 |
| Restricted stock and restricted stock units | |||
| Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
| Stock-based compensation expense | $ 399 | $ 372 | $ 281 |
COMMON STOCK AND STOCK-BASED COMPENSATION - Weighted Average Assumptions Used to Estimate Fair Values (Details) - Stock options |
12 Months Ended | ||
|---|---|---|---|
May 31, 2024 |
May 31, 2023 |
May 31, 2022 |
|
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Dividend yield | 1.20% | 0.90% | 0.80% |
| Expected volatility | 29.30% | 27.10% | 24.90% |
| Weighted average expected life (in years) | 5 years 9 months 18 days | 5 years 9 months 18 days | 5 years 9 months 18 days |
| Risk-free interest rate | 4.30% | 3.30% | 0.90% |
COMMON STOCK AND STOCK-BASED COMPENSATION - Stock Option Transactions Under Plan (Details) - Stock Incentive Plan shares in Millions |
12 Months Ended |
|---|---|
|
May 31, 2024
$ / shares
shares
| |
| Options Outstanding - Shares | |
| Beginning Balance (in shares) | shares | 71.0 |
| Exercised (in shares) | shares | (7.0) |
| Forfeited (in shares) | shares | (2.5) |
| Granted (in shares) | shares | 12.2 |
| Ending Balance (in shares) | shares | 73.7 |
| Options exercisable (in shares) | shares | 48.9 |
| Options Outstanding - Weighted-Average Option Price | |
| Beginning Balance (in dollars per share) | $ / shares | $ 94.40 |
| Exercised (in dollars per share) | $ / shares | 62.46 |
| Forfeited (in dollars per share) | $ / shares | 117.20 |
| Granted (in dollars per share) | $ / shares | 103.08 |
| Ending Balance (in dollars per share) | $ / shares | 98.10 |
| Options exercisable (in dollars per share) | $ / shares | $ 89.88 |
COMMON STOCK AND STOCK-BASED COMPENSATION - Restricted Stock and Restricted Stock Units (Details) - Restricted Stock And Restricted Stock Units - $ / shares shares in Millions |
12 Months Ended | ||
|---|---|---|---|
May 31, 2024 |
May 31, 2023 |
May 31, 2022 |
|
| SHARES | |||
| Beginning balance (in shares) | 8.3 | ||
| Vested (in shares) | (3.3) | ||
| Forfeited (in shares) | (1.2) | ||
| Granted (in shares) | 5.3 | ||
| Ending balance (in shares) | 9.1 | 8.3 | |
| WEIGHTED AVERAGE GRANT DATE FAIR VALUE | |||
| Beginning balance (in dollars per share) | $ 126.97 | ||
| Vested (in dollars per share) | 116.78 | ||
| Forfeited (in dollars per share) | 121.79 | ||
| Granted (in dollars per share) | 103.13 | $ 115.56 | $ 168.04 |
| Ending balance (in dollars per share) | $ 117.52 | $ 126.97 | |
EARNINGS PER SHARE - Additional Information (Details) - shares shares in Millions |
12 Months Ended | ||
|---|---|---|---|
May 31, 2024 |
May 31, 2023 |
May 31, 2022 |
|
| 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) | 41.0 | 31.7 | 9.4 |
EARNINGS PER SHARE- Reconciliation from Basic Earnings Per Share to Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
12 Months Ended | ||
|---|---|---|---|
May 31, 2024 |
May 31, 2023 |
May 31, 2022 |
|
| Earnings Per Share [Abstract] | |||
| Net income available to common stockholders | $ 5,700 | $ 5,070 | $ 6,046 |
| Determination of shares: | |||
| Weighted average common shares outstanding (in shares) | 1,517.6 | 1,551.6 | 1,578.8 |
| Assumed conversion of dilutive stock options and awards (in shares) | 12.1 | 18.2 | 32.0 |
| DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (in shares) | 1,529.7 | 1,569.8 | 1,610.8 |
| Earnings per common share: | |||
| Basic (in dollars per share) | $ 3.76 | $ 3.27 | $ 3.83 |
| Diluted (in dollars per share) | $ 3.73 | $ 3.23 | $ 3.75 |
BENEFIT PLANS (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
May 31, 2024 |
May 31, 2023 |
May 31, 2022 |
|
| Retirement Benefits [Abstract] | |||
| 401(k) employee savings plans, expenses | $ 153 | $ 136 | $ 126 |
| Assets held in rabbi trust | 1,037 | 875 | |
| Deferred compensation plan liabilities | $ 1,063 | $ 897 | |
REVENUES - Additional Information (Details) - USD ($) $ in Millions |
May 31, 2024 |
May 31, 2023 |
|---|---|---|
| Disaggregation of Revenue [Line Items] | ||
| Allowance For Sales Discounts And Returns | $ 1,282 | $ 994 |
| Prepaid expenses and other current assets | ||
| Disaggregation of Revenue [Line Items] | ||
| Reserve for sales returns | $ 331 | $ 226 |
OPERATING SEGMENTS AND RELATED INFORMATION - Additional Information (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
May 31, 2024 |
May 31, 2023 |
May 31, 2022 |
|
| Segment Reporting, Asset Reconciling Item [Line Items] | |||
| Revenues | $ 51,362 | $ 51,217 | $ 46,710 |
| United States | |||
| Segment Reporting, Asset Reconciling Item [Line Items] | |||
| Revenues | $ 21,551 | $ 22,007 | $ 18,749 |
OPERATING SEGMENTS AND RELATED INFORMATION - Long-lived Assets by Geographic Areas (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
May 31, 2024 |
May 31, 2023 |
May 31, 2022 |
|
| Revenues from External Customers and Long-Lived Assets [Line Items] | |||
| Revenues | $ 51,362 | $ 51,217 | $ 46,710 |
| Long-lived assets attributable to operations (Domestic) | 7,718 | 8,004 | |
| United States | |||
| Revenues from External Customers and Long-Lived Assets [Line Items] | |||
| Revenues | 21,551 | 22,007 | $ 18,749 |
| Long-lived assets attributable to operations (Domestic) | 4,837 | 5,129 | |
| Belgium | |||
| Revenues from External Customers and Long-Lived Assets [Line Items] | |||
| Long-lived assets attributable to operations (Domestic) | 757 | 702 | |
| China | |||
| Revenues from External Customers and Long-Lived Assets [Line Items] | |||
| Long-lived assets attributable to operations (Domestic) | 501 | 559 | |
| Other | |||
| Revenues from External Customers and Long-Lived Assets [Line Items] | |||
| Long-lived assets attributable to operations (Domestic) | $ 1,623 | $ 1,614 | |
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions |
May 31, 2024 |
May 31, 2023 |
|---|---|---|
| Commitments and Contingencies Disclosure [Abstract] | ||
| Letters of credit outstanding | $ 768 | $ 588 |
LEASES - Additional Information (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
May 31, 2024 |
May 31, 2023 |
May 31, 2022 |
|
| Leases [Abstract] | |||
| Operating lease cost | $ 618 | $ 585 | $ 593 |
| Variable lease cost | $ 433 | $ 403 | $ 366 |
LEASES - Maturities (Details) $ in Millions |
May 31, 2024
USD ($)
|
|---|---|
| Leases [Abstract] | |
| Fiscal 2025 | $ 572 |
| Fiscal 2026 | 554 |
| Fiscal 2027 | 485 |
| Fiscal 2028 | 403 |
| Fiscal 2029 | 362 |
| Thereafter | 991 |
| Total undiscounted future cash flows related to lease payments | 3,367 |
| Less interest | 324 |
| Present value of lease liabilities | 3,043 |
| Minimum lease payments, agreements signed but not yet commenced | $ 614 |
LEASES - Lease Term and Discount Rate (Details) |
May 31, 2024 |
May 31, 2023 |
|---|---|---|
| Leases [Abstract] | ||
| Weighted-average remaining lease term (in years) | 6 years 10 months 24 days | 7 years 6 months |
| Weighted-average discount rate | 2.90% | 2.50% |
LEASES - Supplemental Cash Flows (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
May 31, 2024 |
May 31, 2023 |
May 31, 2022 |
|
| Leases [Abstract] | |||
| Cash paid for amounts included in the measurement of lease liabilities: | $ 613 | $ 575 | $ 589 |
| Operating lease right-of-use assets obtained in exchange for new operating lease liabilities | $ 458 | $ 602 | $ 537 |
DIVESTITURES (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended |
|---|---|---|
Nov. 30, 2022 |
May 31, 2020 |
|
| Argentina And Uruguay | Discontinued Operations, Held-for-sale | NIKE Brand Businesses | ||
| Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
| Non-recurring impairment charge | $ 550 | $ 389 |
RESTRUCTURING - Additional Information (Details) $ in Millions |
May 31, 2024
USD ($)
|
|---|---|
| Restructuring and Related Activities [Abstract] | |
| Expected cost | $ 450 |
RESTRUCTURING - Accrued Liabilities (Details) $ in Millions |
12 Months Ended |
|---|---|
|
May 31, 2024
USD ($)
| |
| Restructuring Cost and Reserve [Line Items] | |
| Employee severance and related costs | $ 443 |
| One-time Termination Benefits | |
| Restructuring Cost and Reserve [Line Items] | |
| Balance at May 31, 2023 | 0 |
| Employee severance and related costs | 392 |
| Cash payments | (123) |
| Foreign currency translation and other | (2) |
| Balance at May 31, 2024 | $ 267 |
Schedule II - Valuation and Qualifying Accounts (Details) - Allowance for Sales Returns - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
May 31, 2024 |
May 31, 2023 |
May 31, 2022 |
|
| SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
| BALANCE AT BEGINNING OF PERIOD | $ 549 | $ 525 | $ 595 |
| CHARGED TO COSTS AND EXPENSES | 3,583 | 3,344 | 2,573 |
| CHARGED TO OTHER ACCOUNTS | (8) | (11) | (31) |
| WRITE-OFFS, NET | (3,325) | (3,309) | (2,612) |
| BALANCE AT END OF PERIOD | $ 799 | $ 549 | $ 525 |
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