Cover Page
Cover Page - shares | 3 Months Ended | |
Aug. 31, 2020 | Sep. 28, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Aug. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-10635 | |
Entity Registrant Name | NIKE, Inc. | |
Entity Incorporation, State or Country Code | OR | |
Entity Tax Identification Number | 93-0584541 | |
Entity Address, Address Line One | One Bowerman Drive | |
Entity Address, City or Town | Beaverton | |
Entity Address, State or Province | OR | |
Entity Address, Postal Zip Code | 97005-6453 | |
City Area Code | 503 | |
Local Phone Number | 671-6453 | |
Title of 12(b) Security | Class B Common Stock | |
Trading Symbol | NKE | |
Security Exchange Name | NYSE | |
Entity Central Index Key | 0000320187 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Current Fiscal Year End Date | --05-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A Convertible Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock Shares Outstanding (In Shares) | 315,017,252 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock Shares Outstanding (In Shares) | 1,254,809,281 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Income Statement [Abstract] | ||
Revenues | $ 10,594 | $ 10,660 |
Cost of sales | 5,853 | 5,789 |
Gross profit | 4,741 | 4,871 |
Demand creation expense | 677 | 1,018 |
Operating overhead expense | 2,298 | 2,310 |
Total selling and administrative expense | 2,975 | 3,328 |
Interest expense (income), net | 65 | 15 |
Other (income) expense, net | (14) | (33) |
Income before income taxes | 1,715 | 1,561 |
Income tax expense | 197 | 194 |
NET INCOME | $ 1,518 | $ 1,367 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 0.97 | $ 0.87 |
Diluted (in dollars per share) | $ 0.95 | $ 0.86 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 1,561.8 | 1,562.4 |
Diluted (in shares) | 1,593.3 | 1,597.5 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1,518 | $ 1,367 |
Other comprehensive income (loss), net of tax: | ||
Change in net foreign currency translation adjustment | 318 | (89) |
Change in net gains (losses) on cash flow hedges | (658) | 36 |
Change in net gains (losses) on other | (5) | 2 |
Total other comprehensive income (loss), net of tax | (345) | (51) |
TOTAL COMPREHENSIVE INCOME | $ 1,173 | $ 1,316 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Balance Sheets - USD ($) shares in Millions, $ in Millions | Aug. 31, 2020 | May 31, 2020 |
Current assets: | ||
Cash and equivalents | $ 8,148 | $ 8,348 |
Short-term investments | 1,332 | 439 |
Accounts receivable, net | 3,813 | 2,749 |
Inventories | 6,705 | 7,367 |
Prepaid expenses and other current assets | 1,939 | 1,653 |
Total current assets | 21,937 | 20,556 |
Property, plant and equipment, net | 4,969 | 4,866 |
Operating lease right-of-use assets, net | 3,158 | 3,097 |
Identifiable intangible assets, net | 272 | 274 |
Goodwill | 223 | 223 |
Deferred income taxes and other assets | 2,699 | 2,326 |
TOTAL ASSETS | 33,258 | 31,342 |
Current liabilities: | ||
Current portion of long-term debt | 1 | 3 |
Notes payable | 137 | 248 |
Accounts payable | 1,983 | 2,248 |
Current portion of operating lease liabilities | 459 | 445 |
Accrued liabilities | 5,742 | 5,184 |
Income taxes payable | 297 | 156 |
Total current liabilities | 8,619 | 8,284 |
Long-term debt | 9,408 | 9,406 |
Operating lease liabilities | 2,961 | 2,913 |
Deferred income taxes and other liabilities | 3,046 | 2,684 |
Redeemable preferred stock | 0 | 0 |
Shareholders' equity: | ||
Capital in excess of stated value | 8,695 | 8,299 |
Accumulated other comprehensive income (loss) | (401) | (56) |
Retained earnings (deficit) | 927 | (191) |
Total shareholders' equity | 9,224 | 8,055 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 33,258 | 31,342 |
Class A Convertible Common Stock | ||
Shareholders' equity: | ||
Common stock at stated value | $ 0 | $ 0 |
Common Stock, shares outstanding (in shares) | 315 | 315 |
Class B Common Stock | ||
Shareholders' equity: | ||
Common stock at stated value | $ 3 | $ 3 |
Common Stock, shares outstanding (in shares) | 1,250 | 1,243 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - shares shares in Millions | Aug. 31, 2020 | May 31, 2020 |
Class A Convertible Common Stock | ||
Common Stock, shares outstanding (in shares) | 315 | 315 |
Class B Common Stock | ||
Common Stock, shares outstanding (in shares) | 1,250 | 1,243 |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Cash provided (used) by operations: | ||
Net income | $ 1,518 | $ 1,367 |
Adjustments to reconcile net income to net cash provided (used) by operations: | ||
Depreciation | 176 | 169 |
Deferred income taxes | (220) | (42) |
Stock-based compensation | 136 | 80 |
Amortization, impairment and other | 41 | 6 |
Net foreign currency adjustments | (45) | 49 |
Changes in certain working capital components and other assets and liabilities: | ||
(Increase) decrease in accounts receivable | (990) | (456) |
(Increase) decrease in inventories | 689 | (270) |
(Increase) decrease in prepaid expenses, operating lease right-of-use assets and other current and non-current assets | (338) | 38 |
Increase (decrease) in accounts payable, accrued liabilities, operating lease liabilities and other current and non-current liabilities | (85) | (547) |
Cash provided (used) by operations | 882 | 394 |
Cash provided (used) by investing activities: | ||
Purchases of short-term investments | (1,401) | (504) |
Maturities of short-term investments | 302 | 16 |
Sales of short-term investments | 384 | 533 |
Additions to property, plant and equipment | (176) | (284) |
Other investing activities | 2 | (109) |
Cash provided (used) by investing activities | (889) | (348) |
Cash provided (used) by financing activities: | ||
Increase (decrease) in notes payable | (30) | 241 |
Repayment of borrowings | (83) | (2) |
Proceeds from exercise of stock options and other stock issuances | 302 | 111 |
Repurchase of common stock | 0 | (999) |
Dividends — common and preferred | (384) | (345) |
Other financing activities | (53) | (16) |
Cash provided (used) by financing activities | (248) | (1,010) |
Effect of exchange rate changes on cash and equivalents | 55 | (56) |
Net increase (decrease) in cash and equivalents | (200) | (1,020) |
Cash and equivalents, beginning of period | 8,348 | 4,466 |
CASH AND EQUIVALENTS, END OF PERIOD | 8,148 | 3,446 |
Supplemental disclosure of cash flow information: | ||
Non-cash additions to property, plant and equipment | 114 | 90 |
Dividends declared and not paid | $ 383 | $ 344 |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | CAPITAL IN EXCESS OF STATED VALUE | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | RETAINED EARNINGS (DEFICIT) | Class A Common Stock | Class A Common StockCOMMON STOCK | Class B Common Stock | Class B Common StockCOMMON STOCK |
Beginning Balance (in shares) at May. 31, 2019 | 315 | 1,253 | ||||||
Beginning balance at May. 31, 2019 | $ 9,040 | $ 7,163 | $ 231 | $ 1,643 | $ 0 | $ 3 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock options exercised (in shares) | 4 | |||||||
Stock options exercised | 116 | 116 | ||||||
Repurchase of Class B Common Stock (in shares) | (12) | |||||||
Repurchase of Class B Common Stock | (995) | (55) | (940) | |||||
Dividends on common stock and preferred stock | (344) | (344) | ||||||
Issuance of shares to employees, net of shares withheld for employee taxes | (12) | (8) | (4) | |||||
Stock-based compensation | 80 | 80 | ||||||
Net income | 1,367 | 1,367 | ||||||
Other comprehensive income (loss) | (51) | (51) | ||||||
Ending Balance (in shares) at Aug. 31, 2019 | 315 | 1,245 | ||||||
Ending balance at Aug. 31, 2019 | 9,200 | 7,296 | 180 | 1,721 | $ 0 | $ 3 | ||
Beginning Balance (in shares) at May. 31, 2020 | 315 | 315 | 1,243 | 1,243 | ||||
Beginning balance at May. 31, 2020 | 8,055 | 8,299 | (56) | (191) | $ 0 | $ 3 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock options exercised (in shares) | 7 | |||||||
Stock options exercised | 291 | 291 | ||||||
Dividends on common stock and preferred stock | (383) | (383) | ||||||
Issuance of shares to employees, net of shares withheld for employee taxes | (48) | (31) | (17) | |||||
Stock-based compensation | 136 | 136 | ||||||
Net income | 1,518 | 1,518 | ||||||
Other comprehensive income (loss) | (345) | (345) | ||||||
Ending Balance (in shares) at Aug. 31, 2020 | 315 | 315 | 1,250 | 1,250 | ||||
Ending balance at Aug. 31, 2020 | $ 9,224 | $ 8,695 | $ (401) | $ 927 | $ 0 | $ 3 |
Unaudited Condensed Consolida_7
Unaudited Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared per common share (in dollars per share) | $ 0.245 | $ 0.22 |
Dividends declared per preferred share (in dollars per share) | $ 0.10 | $ 0.10 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Aug. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION The Unaudited Condensed Consolidated Financial Statements include the accounts of NIKE, Inc. and its subsidiaries (the “Company” or “NIKE”) and reflect all normal recurring adjustments which are, in the opinion of management, necessary for a fair statement of the results of operations for the interim period. The year-end Condensed Consolidated Balance Sheet data as of May 31, 2020 was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). The interim financial information and notes thereto should be read in conjunction with the Company's latest Annual Report on Form 10-K. The results of operations for the three months ended August 31, 2020 are not necessarily indicative of results to be expected for the entire fiscal year. As previously disclosed in the Annual Report on Form 10-K for the fiscal year ended May 31, 2020 , the extent to which the evolving COVID-19 pandemic impacts the Company's financial statements will depend on a number of factors, including the magnitude and duration of the pandemic. There remains risk that COVID-19 could have material adverse impacts on future revenue growth as well as overall profitability and may lead to higher than normal inventory levels in various markets, revised payment terms with certain wholesale customers, higher sales-related reserves and a volatile effective tax rate driven by changes in the mix of earnings across the Company's jurisdictions. |
Inventories
Inventories | 3 Months Ended |
Aug. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 2 — INVENTORIES Inventory balances of $6,705 million and $7,367 million at August 31, 2020 and May 31, 2020, respectively, were substantially all finished goods. |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Aug. 31, 2020 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | NOTE 3 — ACCRUED LIABILITIES Accrued liabilities included the following: AUGUST 31, MAY 31, (Dollars in millions) 2020 2020 Sales-related reserves $ 1,127 $ 1,178 Compensation and benefits, excluding taxes 950 1,248 Fair value of derivatives 512 190 Allowance for expected loss on sale (1) 438 405 Other 2,715 2,163 TOTAL ACCRUED LIABILITIES $ 5,742 $ 5,184 (1) Refer to Note 13 — Acquisitions and Divestitures for additional information. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Aug. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 4 — FAIR VALUE MEASUREMENTS The Company measures certain financial assets and liabilities at fair value on a recurring basis, including derivatives, equity securities and available-for-sale debt securities. For additional information about the Company's fair value policies refer to Note 1 — Summary of Significant Accounting Policies of the Annual Report on Form 10-K for the fiscal year ended May 31, 2020. The following tables present information about the Company's financial assets measured at fair value on a recurring basis as of August 31, 2020 and May 31, 2020, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement: AUGUST 31, 2020 (Dollars in millions) ASSETS AT FAIR VALUE CASH AND EQUIVALENTS SHORT-TERM INVESTMENTS Cash $ 542 $ 542 $ — Level 1: U.S. Treasury securities 1,695 400 1,295 Level 2: Commercial paper and bonds 33 — 33 Money market funds 6,340 6,340 — Time deposits 867 866 1 U.S. Agency securities 3 — 3 Total Level 2 7,243 7,206 37 TOTAL $ 9,480 $ 8,148 $ 1,332 MAY 31, 2020 (Dollars in millions) ASSETS AT FAIR VALUE CASH AND EQUIVALENTS SHORT-TERM INVESTMENTS Cash $ 596 $ 596 $ — Level 1: U.S. Treasury securities 1,204 800 404 Level 2: Commercial paper and bonds 32 — 32 Money market funds 5,973 5,973 — Time deposits 981 979 2 U.S. Agency securities 1 — 1 Total Level 2 6,987 6,952 35 TOTAL $ 8,787 $ 8,348 $ 439 As of August 31, 2020, the Company held $1,291 million of available-for-sale debt securities with maturity dates within one year and $41 million with maturity dates over one year and less than five years in Short-term investments on the Unaudited Condensed Consolidated Balance Sheets. The fair value of the Company's available-for-sale debt securities approximates their amortized cost. Included in Interest expense (income), net was interest income related to the Company's investment portfolio of $7 million and $21 million for the three months ended August 31, 2020 and 2019, respectively. The following tables present information about the Company's derivative assets and liabilities measured at fair value on a recurring basis as of August 31, 2020 and May 31, 2020, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement: AUGUST 31, 2020 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) $ 48 $ 43 $ 5 $ 655 $ 511 $ 144 Embedded derivatives — — — 1 1 — TOTAL $ 48 $ 43 $ 5 $ 656 $ 512 $ 144 (1) If the foreign exchange derivative instruments had been netted on the Unaudited Condensed Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $44 million as of August 31, 2020. As of that date, the Company had posted $151 million of cash collateral to various counterparties related to foreign exchange derivative instruments. No amount of collateral was received on the Company's derivative asset balance as of August 31, 2020. MAY 31, 2020 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) $ 94 $ 91 $ 3 $ 205 $ 188 $ 17 Embedded derivatives 1 1 — 2 2 — TOTAL $ 95 $ 92 $ 3 $ 207 $ 190 $ 17 (1) If the foreign exchange derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $76 million as of May 31, 2020. As of that date, no amount of cash collateral had been received or posted on the derivative asset and liability balances related to these foreign exchange derivative instruments. For additional information related to the Company's derivative financial instruments and credit risk, refer to Note 9 — Risk Management and Derivatives. The carrying amounts of other current financial assets and other current financial liabilities approximate fair value. FINANCIAL ASSETS AND LIABILITIES NOT RECORDED AT FAIR VALUE Long-term debt is recorded at adjusted cost, net of unamortized premiums, discounts and debt issuance costs. The fair value of Long-term debt is estimated based upon quoted prices for similar instruments or quoted prices for identical instruments in inactive markets (Level 2). The fair value of the Company’s Long-term debt, including the current portion, was approximately $10,731 million at August 31, 2020 and $10,645 million at May 31, 2020. For fair value information regarding Notes payable, refer to Note 5 — Short-Term Borrowings and Credit Lines. |
Short-Term Borrowings and Credi
Short-Term Borrowings and Credit Lines | 3 Months Ended |
Aug. 31, 2020 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings and Credit Lines | NOTE 5 — SHORT-TERM BORROWINGS AND CREDIT LINES The carrying amounts reflected on the Unaudited Condensed Consolidated Balance Sheets for Notes payable approximate fair value. As of August 31, 2020 and May 31, 2020, the Company had $112 million and $248 million of borrowings outstanding at a weighted average interest rate of 1.72% and 1.65%, respectively, under its $4 billion commercial paper program. Commercial paper repayments with original maturities greater than three months are included in Repayments from borrowings on the Unaudited Condensed Consolidated Statements of Cash Flows. As of August 31, 2020, there have been no significant changes to the credit lines reported in the Company's Annual Report on Form 10-K for the fiscal year ended May 31, 2020. |
Income Taxes
Income Taxes | 3 Months Ended |
Aug. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 6 — INCOME TAXES The effective tax rate was 11.5% and 12.4% for the three months ended August 31, 2020 and 2019, respectively. The decrease in the Company's effective tax rate was attributable to discrete items including a more favorable impact from stock-based compensation, offset by a reserve related to Altera Corp. v. Commissioner where the taxpayer was denied a hearing before the U.S. Supreme Court on June 22, 2020, thereby ratifying the Ninth Circuit Court's decision and requiring the inclusion of stock-based compensation in intercompany cost-sharing arrangements. As of August 31, 2020, total gross unrecognized tax benefits, excluding related interest and penalties, were $860 million, $584 million of which would affect the Company's effective tax rate if recognized in future periods. During the three months ended August 31, 2020, the Company recognized $77 million of gross unrecognized tax benefits related to Altera Corp. v. Commissioner discussed above, of which $71 million impacted the effective tax rate. The majority of the total gross unrecognized tax benefits are long-term in nature and included within Deferred income taxes and other liabilities on the Unaudited Condensed Consolidated Balance Sheets. As of May 31, 2020, total gross unrecognized tax benefits, excluding related interest and penalties, were $771 million. The liability for payment of interest and penalties increased by $21 million during the three months ended August 31, 2020. As of August 31, 2020 and May 31, 2020, accrued interest and penalties related to uncertain tax positions were $179 million and $158 million, respectively (excluding federal benefit). The Company is subject to taxation in the United States, as well as various state and foreign jurisdictions. The Company is currently under audit by the U.S. Internal Revenue Service ("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. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Aug. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | NOTE 7 — STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION The NIKE, Inc. Stock Incentive Plan (the “Stock Incentive Plan”) provides for the issuance of up to 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, restricted stock, restricted stock units and performance-based awards. In addition to the Stock Incentive Plan, the Company gives employees the right to purchase shares at a discount from the market price under employee stock purchase plans (ESPPs). Refer to Note 11 — Common Stock and Stock-Based Compensation of the Annual Report on Form 10-K for the fiscal year ended May 31, 2020 for further information. The following table summarizes the Company's total stock-based compensation expense recognized in Cost of sales or Operating overhead expense, as applicable: THREE MONTHS ENDED AUGUST 31, (Dollars in millions) 2020 2019 Stock options (1) $ 70 $ 42 ESPPs 18 13 Restricted stock 48 25 TOTAL STOCK-BASED COMPENSATION EXPENSE $ 136 $ 80 (1) Expense for stock options includes the expense associated with stock appreciation rights. Accelerated stock option expense is primarily recorded for employees meeting certain retirement eligibility requirements. The income tax benefit related to stock-based compensation expense was $81 million and $37 million for the three months ended August 31, 2020 and 2019, respectively. STOCK OPTIONS The weighted average fair value per share of the options granted during the three months ended August 31, 2020 and 2019, computed as of the grant date using the Black-Scholes pricing model, was $22.55 and $18.33, respectively. The weighted average assumptions used to estimate these fair values were as follows: THREE MONTHS ENDED AUGUST 31, 2020 2019 Dividend yield 1.0 % 1.1 % Expected volatility 27.2 % 22.9 % Weighted average expected life (in years) 6.0 6.0 Risk-free interest rate 0.3 % 1.7 % Expected volatilities are based on the historical volatility of the Company's common stock, the implied volatility in market traded options on the Company's common stock with a term greater than one year, as well as other factors. The weighted average expected life of options is based on an analysis of historical and expected future exercise patterns. The interest rate is based on the U.S. Treasury (constant maturity) risk-free rate in effect at the date of grant for periods corresponding with the expected term of the options. As of August 31, 2020, the Company had $378 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 2.4 years. RESTRICTED STOCK AND RESTRICTED STOCK UNITS The weighted average fair value per share of restricted stock and restricted stock units granted for the three months ended August 31, 2020 and 2019, computed as of the grant date, was $98.47 and $84.19, respectively. As of August 31, 2020, the Company had $394 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 2.7 years. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Aug. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 8 — EARNINGS PER SHARE The following is a reconciliation from basic earnings per common share to diluted earnings per common share. The computations of diluted earnings per common share excluded options, including shares under ESPPs, and restricted stock to purchase an additional 2.1 million and 19.1 million shares of common stock outstanding for the three months ended August 31, 2020 and 2019, respectively, because the options were anti-dilutive. THREE MONTHS ENDED AUGUST 31, (In millions, except per share data) 2020 2019 Net income available to common stockholders $ 1,518 $ 1,367 Determination of shares: Weighted average common shares outstanding 1,561.8 1,562.4 Assumed conversion of dilutive stock options and awards 31.5 35.1 DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 1,593.3 1,597.5 Earnings per common share: Basic $ 0.97 $ 0.87 Diluted $ 0.95 $ 0.86 |
Risk Management and Derivatives
Risk Management and Derivatives | 3 Months Ended |
Aug. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Risk Management and Derivatives | NOTE 9 — RISK MANAGEMENT AND DERIVATIVES The Company is exposed to global market risks, including the effect of changes in foreign currency exchange rates and interest rates, and uses derivatives to manage financial exposures that occur in the normal course of business. As of and for the three months ended August 31, 2020, there have been no material changes to the Company's hedging program or strategy from what was disclosed within the Annual Report on Form 10-K. For additional information about the Company's derivatives and hedging policies refer to Note 1 — Summary of Significant Accounting Policies and Note 14 — Risk Management and Derivatives of the Annual Report on Form 10-K for the fiscal year ended May 31, 2020. The majority of derivatives outstanding as of August 31, 2020 are designated as foreign currency cash flow hedges, primarily for Euro/U.S. Dollar, Japanese Yen/U.S. Dollar, Chinese Yuan/U.S. Dollar, and British Pound/Euro, currency pairs. All derivatives are recognized on the Unaudited Condensed Consolidated Balance Sheets at fair value and classified based on the instrument's maturity date. The following tables present the fair values of derivative instruments included within the Unaudited Condensed Consolidated Balance Sheets as of August 31, 2020 and May 31, 2020: DERIVATIVE ASSETS BALANCE SHEET LOCATION AUGUST 31, MAY 31, (Dollars in millions) 2020 2020 Derivatives formally designated as hedging instruments: Foreign exchange forwards and options Prepaid expenses and other current assets $ 13 $ 43 Foreign exchange forwards and options Deferred income taxes and other assets 3 1 Total derivatives formally designated as hedging instruments 16 44 Derivatives not designated as hedging instruments: Foreign exchange forwards and options Prepaid expenses and other current assets 30 48 Embedded derivatives Prepaid expenses and other current assets — 1 Foreign exchange forwards and options Deferred income taxes and other assets 2 2 Total derivatives not designated as hedging instruments 32 51 TOTAL DERIVATIVE ASSETS $ 48 $ 95 DERIVATIVE LIABILITIES BALANCE SHEET LOCATION AUGUST 31, MAY 31, (Dollars in millions) 2020 2020 Derivatives formally designated as hedging instruments: Foreign exchange forwards and options Accrued liabilities $ 488 $ 173 Foreign exchange forwards and options Deferred income taxes and other liabilities 144 17 Total derivatives formally designated as hedging instruments 632 190 Derivatives not designated as hedging instruments: Foreign exchange forwards and options Accrued liabilities 23 15 Embedded derivatives Accrued liabilities 1 2 Total derivatives not designated as hedging instruments 24 17 TOTAL DERIVATIVE LIABILITIES $ 656 $ 207 The following table presents the amounts in the Unaudited Condensed Consolidated Statements of Income in which the effects of cash flow hedges are recorded and the effects of cash flow hedge activity on these line items for the three months ended August 31, 2020 and 2019: THREE MONTHS ENDED AUGUST 31, 2020 2019 (Dollars in millions) TOTAL AMOUNT OF TOTAL AMOUNT OF Revenues $ 10,594 $ 14 $ 10,660 $ 8 Cost of sales 5,853 114 5,789 75 Demand creation expense 677 1 1,018 — Other (income) expense, net (14) 8 (33) 46 Interest expense (income), net 65 (2) 15 (2) The following tables present the amounts affecting the Unaudited Condensed Consolidated Statements of Income for the three months ended August 31, 2020 and 2019: (Dollars in millions) AMOUNT OF GAIN (LOSS) (1) AMOUNT OF GAIN (LOSS) (1) THREE MONTHS ENDED AUGUST 31, LOCATION OF GAIN (LOSS) THREE MONTHS ENDED AUGUST 31, 2020 2019 2020 2019 Derivatives designated as cash flow hedges: Foreign exchange forwards and options $ — $ 21 Revenues $ 14 $ 8 Foreign exchange forwards and options (371) 109 Cost of sales 114 75 Foreign exchange forwards and options 1 33 Demand creation expense 1 — Foreign exchange forwards and options (160) — Other (income) expense, net 8 46 Interest rate swaps (2) — — Interest expense (income), net (2) (2) Total designated cash $ (530) $ 163 $ 135 $ 127 (1) For the three months ended August 31, 2020 and 2019, the amounts recorded in Other (income) expense, net as a result of the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial. (2) Gains and losses associated with terminated interest rate swaps, which were previously designated as cash flow hedges and recorded in Accumulated other comprehensive income (loss), will be released through Interest expense (income), net over the term of the issued debt. AMOUNT OF GAIN (LOSS) RECOGNIZED LOCATION OF GAIN (LOSS) THREE MONTHS ENDED AUGUST 31, (Dollars in millions) 2020 2019 Derivatives not designated as hedging instruments: Foreign exchange forwards and options $ (38) $ — Other (income) expense, net Embedded derivatives (4) (1) Other (income) expense, net CASH FLOW HEDGES All changes in fair value of derivatives designated as cash flow hedges 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 Unaudited Condensed Consolidated Statements of Income in the same manner as the underlying exposure. Derivative instruments designated as cash flow hedges must be discontinued when it is no longer probable the forecasted hedged transaction will occur in the initially identified time period. The gains and losses associated with discontinued derivative instruments in Accumulated other comprehensive income (loss) will be 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 The total notional amount of outstanding foreign currency derivatives designated as cash flow hedges was approximately $13.9 billion as of August 31, 2020. Approximately $97 million of deferred net losses (net of tax) on both outstanding and matured derivatives in Accumulated other comprehensive income (loss) as of August 31, 2020, 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 August 31, 2020, the maximum term over which the Company hedges exposures to the variability of cash flows for its forecasted transactions was 27 months. 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 Unaudited Condensed Consolidated Balance Sheets and/or the embedded derivative contracts. These undesignated instruments are recorded at fair value as a derivative asset or liability on the Unaudited Condensed Consolidated Balance Sheets with their corresponding change in fair value recognized in Other (income) expense, net, together with the re-measurement gain or loss from the hedged balance sheet position and/or embedded derivative contract. The total notional amount of outstanding undesignated derivative instruments was $4.2 billion as of August 31, 2020. EMBEDDED DERIVATIVES Embedded derivative contracts are treated as foreign currency forward contracts that are bifurcated from the related contract and recorded at fair value as a derivative asset or liability on the Unaudited Condensed Consolidated Balance Sheets with their corresponding change in fair value recognized in Other (income) expense, net, through the date the foreign currency fluctuations cease to exist. As of August 31, 2020, the total notional amount of embedded derivatives outstanding was approximately $351 million. CREDIT RISK The Company's bilateral credit-related contingent features generally require the owing entity, either the Company or the derivative counterparty, to post collateral for the portion of the fair value in excess of $50 million should the fair value of outstanding derivatives per counterparty be greater than $50 million. Additionally, a certain level of decline in credit rating of either the Company or the counterparty could also trigger collateral requirements. As of August 31, 2020, the Company was in compliance with all credit risk-related contingent features, and derivative instruments with such features were in a net liability position of approximately $611 million. Accordingly, the Company was required to post $151 million of cash collateral as a result of these contingent features. Further, no amount of collateral was received on the Company's derivative asset balance as of August 31, 2020. The Company considers the impact of the risk of counterparty default to be immaterial. For additional information related to the Company's derivative financial instruments and collateral, refer to Note 4 — Fair Value Measurements. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Aug. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | NOTE 10 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The changes in Accumulated other comprehensive income (loss), net of tax, were as follows: (Dollars in millions) FOREIGN CURRENCY TRANSLATION ADJUSTMENT (1) CASH FLOW HEDGES NET INVESTMENT HEDGES (1) OTHER TOTAL Balance at May 31, 2020 $ (494) $ 390 $ 115 $ (67) $ (56) Other comprehensive income (loss): Other comprehensive gains (losses) before reclassifications (2) 318 (526) — (13) (221) Reclassifications to net income of previously deferred (gains) losses (3) — (132) — 8 (124) Total other comprehensive income (loss) 318 (658) — (5) (345) Balance at August 31, 2020 $ (176) $ (268) $ 115 $ (72) $ (401) (1) The accumulated foreign currency translation adjustment and net investment hedge gains/losses related to an investment in a foreign subsidiary are reclassified to Net income upon sale or upon complete or substantially complete liquidation of the respective entity. (2) Net of tax benefit (expense) of $0 million, $4 million, $0 million, $1 million and $5 million, respectively. (3) Net of tax (benefit) expense of $0 million, $3 million, $0 million, $0 million and $3 million, respectively. (Dollars in millions) FOREIGN CURRENCY TRANSLATION ADJUSTMENT (1) CASH FLOW HEDGES NET INVESTMENT HEDGES (1) OTHER TOTAL Balance at May 31, 2019 $ (346) $ 520 $ 115 $ (58) $ 231 Other comprehensive income (loss): Other comprehensive gains (losses) before reclassifications (2) (89) 163 — 3 77 Reclassifications to net income of previously deferred (gains) losses (3) — (127) — (1) (128) Total other comprehensive income (loss) (89) 36 — 2 (51) Balance at August 31, 2019 $ (435) $ 556 $ 115 $ (56) $ 180 (1) The accumulated foreign currency translation adjustment and net investment hedge gains/losses related to an investment in a foreign subsidiary are reclassified to Net income upon sale or upon complete or substantially complete liquidation of the respective entity. (2) Net of tax benefit (expense) of $0 million, $0 million, $0 million, $0 million and $0 million, respectively. (3) Net of tax (benefit) expense of $0 million, $0 million, $0 million, $0 million and $0 million, respectively. The following table summarizes the reclassifications from Accumulated other comprehensive income (loss) to the Unaudited Condensed Consolidated Statements of Income: AMOUNT OF GAIN (LOSS) LOCATION OF GAIN (LOSS) THREE MONTHS ENDED AUGUST 31, (Dollars in millions) 2020 2019 Gains (losses) on cash flow hedges: Foreign exchange forwards and options $ 14 $ 8 Revenues Foreign exchange forwards and options 114 75 Cost of sales Foreign exchange forwards and options 1 — Demand creation expense Foreign exchange forwards and options 8 46 Other (income) expense, net Interest rate swaps (2) (2) Interest expense (income), net Total before tax 135 127 Tax (expense) (3) — Gain (loss) net of tax 132 127 Gains (losses) on other (8) 1 Other (income) expense, net Total before tax (8) 1 Tax (expense) — — Gain (loss) net of tax (8) 1 Total net gain (loss) reclassified for the period $ 124 $ 128 |
Revenues
Revenues | 3 Months Ended |
Aug. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | NOTE 11 — REVENUES DISAGGREGATION OF REVENUES The following tables present the Company's revenues disaggregated by reportable operating segment, major product line and by distribution channel: THREE MONTHS ENDED AUGUST 31, 2020 (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 $ 2,957 $ 1,802 $ 1,251 $ 758 $ — $ 6,768 $ 513 $ — $ 7,281 Apparel 1,125 971 478 301 — 2,875 22 — 2,897 Equipment 143 137 51 40 — 371 9 — 380 Other — — — — 4 4 19 13 36 TOTAL REVENUES $ 4,225 $ 2,910 $ 1,780 $ 1,099 $ 4 $ 10,018 $ 563 $ 13 $ 10,594 Revenues by: Sales to Wholesale Customers $ 2,719 $ 1,973 $ 964 $ 708 $ — $ 6,364 $ 373 $ — $ 6,737 Sales through Direct to Consumer 1,506 937 816 391 — 3,650 171 — 3,821 Other — — — — 4 4 19 13 36 TOTAL REVENUES $ 4,225 $ 2,910 $ 1,780 $ 1,099 $ 4 $ 10,018 $ 563 $ 13 $ 10,594 THREE MONTHS ENDED AUGUST 31, 2019 (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 $ 2,669 $ 1,758 $ 1,164 $ 930 $ — $ 6,521 $ 496 $ — $ 7,017 Apparel 1,431 869 465 356 — 3,121 26 — 3,147 Equipment 193 146 50 59 — 448 9 — 457 Other — — — — 6 6 24 9 39 TOTAL REVENUES $ 4,293 $ 2,773 $ 1,679 $ 1,345 $ 6 $ 10,096 $ 555 $ 9 $ 10,660 Revenues by: Sales to Wholesale Customers $ 2,864 $ 2,042 $ 986 $ 950 $ — $ 6,842 $ 367 $ — $ 7,209 Sales through Direct to Consumer 1,429 731 693 395 — 3,248 164 — 3,412 Other — — — — 6 6 24 9 39 TOTAL REVENUES $ 4,293 $ 2,773 $ 1,679 $ 1,345 $ 6 $ 10,096 $ 555 $ 9 $ 10,660 For the three months ended August 31, 2020 and 2019, Other revenues for Global Brand Divisions and Converse were primarily attributable to licensing businesses. For the three months ended August 31, 2020 and 2019, Other revenues for Corporate 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 August 31, 2020 and May 31, 2020, the Company did not have any contract assets and had an immaterial amount of contract liabilities recorded in Accrued liabilities on the Unaudited Condensed Consolidated Balance Sheets. |
Operating Segments
Operating Segments | 3 Months Ended |
Aug. 31, 2020 | |
Segment Reporting [Abstract] | |
Operating Segments | NOTE 12 — OPERATING SEGMENTS The Company's operating segments are evidence of the structure of the Company's internal organization. The NIKE Brand segments are defined by geographic regions for operations participating in NIKE Brand 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. 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 primarily represent NIKE Brand licensing businesses that are not part of a geographic operating segment, 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 Unaudited Condensed 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. THREE MONTHS ENDED AUGUST 31, (Dollars in millions) 2020 2019 REVENUES North America $ 4,225 $ 4,293 Europe, Middle East & Africa 2,910 2,773 Greater China 1,780 1,679 Asia Pacific & Latin America 1,099 1,345 Global Brand Divisions 4 6 Total NIKE Brand 10,018 10,096 Converse 563 555 Corporate 13 9 TOTAL NIKE, INC. REVENUES $ 10,594 $ 10,660 EARNINGS BEFORE INTEREST AND TAXES North America $ 1,302 $ 1,100 Europe, Middle East & Africa 692 609 Greater China 688 669 Asia Pacific & Latin America 280 341 Global Brand Divisions (853) (857) Converse 168 138 Corporate (497) (424) Interest expense (income), net 65 15 TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES $ 1,715 $ 1,561 AUGUST 31, MAY 31, (Dollars in millions) 2020 2020 ACCOUNTS RECEIVABLE, NET North America $ 1,256 $ 1,020 Europe, Middle East & Africa 1,439 712 Greater China 271 321 Asia Pacific & Latin America (1) 504 425 Global Brand Divisions 81 65 Total NIKE Brand 3,551 2,543 Converse 213 149 Corporate 49 57 TOTAL ACCOUNTS RECEIVABLE, NET $ 3,813 $ 2,749 INVENTORIES North America $ 2,541 $ 3,077 Europe, Middle East & Africa 1,891 2,070 Greater China 1,113 882 Asia Pacific & Latin America (1) 753 770 Global Brand Divisions 137 137 Total NIKE Brand 6,435 6,936 Converse 293 341 Corporate (23) 90 TOTAL INVENTORIES $ 6,705 $ 7,367 AUGUST 31, MAY 31, (Dollars in millions) 2020 2020 PROPERTY, PLANT AND EQUIPMENT, NET North America $ 637 $ 645 Europe, Middle East & Africa 938 885 Greater China 224 214 Asia Pacific & Latin America (1) 305 296 Global Brand Divisions 867 830 Total NIKE Brand 2,971 2,870 Converse 76 80 Corporate 1,922 1,916 TOTAL PROPERTY, PLANT AND EQUIPMENT, NET $ 4,969 $ 4,866 (1) Excludes assets held-for-sale as of August 31, 2020 and May 31, 2020. See Note 13 — Acquisitions and Divestitures for additional information. |
Acquisitions And Divestitures
Acquisitions And Divestitures | 3 Months Ended |
Aug. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions And Divestitures | NOTE 13 — ACQUISITIONS AND DIVESTITURES During the third quarter of fiscal 2020, as a result of the Company's decision to transition its wholesale and direct to consumer operating model in certain countries within its APLA operating segment, the Company signed definitive agreements to sell its NIKE Brand businesses in Brazil, Argentina, Chile and Uruguay to third-party distributors. Specifically, NIKE entered into agreements to sell its operations in Argentina, Chile and Uruguay to Grupo Axo and to sell substantially all of its operations in Brazil to Grupo SBF S.A., through its wholly owned subsidiary. The Company will retain a small operation in Brazil focused on certain sports marketing assets, local manufacturing and Converse. These transactions are expected to close prior to January 1, 2021, with Grupo SBF S.A.'s transaction subject to Brazil Antitrust Authority approvals. As a result of this decision, beginning in the third quarter of fiscal 2020, the related assets and liabilities of these entities were classified as held-for-sale and remain as such on the Unaudited Condensed Consolidated Balance Sheets as of August 31, 2020, which consisted of the following: • Held-for-sale assets of $545 million, classified within Prepaid expenses and other current assets, primarily consisting of $272 million of Inventories, $174 million of Accounts receivable, net and $54 million of Prepaid expenses and other current assets; and • Held-for-sale liabilities of $88 million, classified within Accrued liabilities, primarily consisting of $52 million of Accrued liabilities, as well as $26 million of Accounts payable. As of May 31, 2020, the related assets and liabilities of these entities classified as held-for-sale on the Consolidated Balance Sheets consisted of the following: • Held-for-sale assets of $506 million, classified within Prepaid expenses and other current assets, primarily consisting of $264 million of Inventories and $138 million of Accounts receivable, net; and • Held-for-sale liabilities of $146 million, classified within Accrued liabilities, primarily consisting of $85 million of Accrued liabilities, as well as $49 million of Accounts payable. |
Restructuring
Restructuring | 3 Months Ended |
Aug. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | NOTE 14 —RESTRUCTURING |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Aug. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The Unaudited Condensed Consolidated Financial Statements include the accounts of NIKE, Inc. and its subsidiaries (the “Company” or “NIKE”) and reflect all normal recurring adjustments which are, in the opinion of management, necessary for a fair statement of the results of operations for the interim period. The year-end Condensed Consolidated Balance Sheet data as of May 31, 2020 was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). The interim financial information and notes thereto should be read in conjunction with the Company's latest Annual Report on Form 10-K. The results of operations for the three months ended August 31, 2020 are not necessarily indicative of results to be expected for the entire fiscal year. As previously disclosed in the Annual Report on Form 10-K for the fiscal year ended May 31, 2020 , the extent to which the evolving COVID-19 pandemic impacts the Company's financial statements will depend on a number of factors, including the magnitude and duration of the pandemic. There remains risk that COVID-19 could have material adverse impacts on future revenue growth as well as overall profitability and may lead to higher than normal inventory levels in various markets, revised payment terms with certain wholesale customers, higher sales-related reserves and a volatile effective tax rate driven by changes in the mix of earnings across the Company's jurisdictions. |
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. |
Hedging Derivatives | CASH FLOW HEDGES All changes in fair value of derivatives designated as cash flow hedges are recorded in Accumulated other comprehensive income (loss) until two |
Undesignated Derivative Instruments | UNDESIGNATED DERIVATIVE INSTRUMENTSThe Company may elect to enter into foreign exchange forwards to mitigate the change in fair value of specific assets and liabilities on the Unaudited Condensed Consolidated Balance Sheets and/or the embedded derivative contracts. These undesignated instruments are recorded at fair value as a derivative asset or liability on the Unaudited Condensed Consolidated Balance Sheets with their corresponding change in fair value recognized in Other (income) expense, net, together with the re-measurement gain or loss from the hedged balance sheet position and/or embedded derivative contract. |
Embedded Derivatives | EMBEDDED DERIVATIVESEmbedded derivative contracts are treated as foreign currency forward contracts that are bifurcated from the related contract and recorded at fair value as a derivative asset or liability on the Unaudited Condensed Consolidated Balance Sheets with their corresponding change in fair value recognized in Other (income) expense, net, through the date the foreign currency fluctuations cease to exist. |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Aug. 31, 2020 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities included the following: AUGUST 31, MAY 31, (Dollars in millions) 2020 2020 Sales-related reserves $ 1,127 $ 1,178 Compensation and benefits, excluding taxes 950 1,248 Fair value of derivatives 512 190 Allowance for expected loss on sale (1) 438 405 Other 2,715 2,163 TOTAL ACCRUED LIABILITIES $ 5,742 $ 5,184 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Aug. 31, 2020 | |
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 August 31, 2020 and May 31, 2020, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement: AUGUST 31, 2020 (Dollars in millions) ASSETS AT FAIR VALUE CASH AND EQUIVALENTS SHORT-TERM INVESTMENTS Cash $ 542 $ 542 $ — Level 1: U.S. Treasury securities 1,695 400 1,295 Level 2: Commercial paper and bonds 33 — 33 Money market funds 6,340 6,340 — Time deposits 867 866 1 U.S. Agency securities 3 — 3 Total Level 2 7,243 7,206 37 TOTAL $ 9,480 $ 8,148 $ 1,332 MAY 31, 2020 (Dollars in millions) ASSETS AT FAIR VALUE CASH AND EQUIVALENTS SHORT-TERM INVESTMENTS Cash $ 596 $ 596 $ — Level 1: U.S. Treasury securities 1,204 800 404 Level 2: Commercial paper and bonds 32 — 32 Money market funds 5,973 5,973 — Time deposits 981 979 2 U.S. Agency securities 1 — 1 Total Level 2 6,987 6,952 35 TOTAL $ 8,787 $ 8,348 $ 439 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following tables present information about the Company's derivative assets and liabilities measured at fair value on a recurring basis as of August 31, 2020 and May 31, 2020, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement: AUGUST 31, 2020 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) $ 48 $ 43 $ 5 $ 655 $ 511 $ 144 Embedded derivatives — — — 1 1 — TOTAL $ 48 $ 43 $ 5 $ 656 $ 512 $ 144 (1) If the foreign exchange derivative instruments had been netted on the Unaudited Condensed Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $44 million as of August 31, 2020. As of that date, the Company had posted $151 million of cash collateral to various counterparties related to foreign exchange derivative instruments. No amount of collateral was received on the Company's derivative asset balance as of August 31, 2020. MAY 31, 2020 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) $ 94 $ 91 $ 3 $ 205 $ 188 $ 17 Embedded derivatives 1 1 — 2 2 — TOTAL $ 95 $ 92 $ 3 $ 207 $ 190 $ 17 (1) If the foreign exchange derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $76 million as of May 31, 2020. As of that date, no amount of cash collateral had been received or posted on the derivative asset and liability balances related to these foreign exchange derivative instruments. The following tables present the fair values of derivative instruments included within the Unaudited Condensed Consolidated Balance Sheets as of August 31, 2020 and May 31, 2020: DERIVATIVE ASSETS BALANCE SHEET LOCATION AUGUST 31, MAY 31, (Dollars in millions) 2020 2020 Derivatives formally designated as hedging instruments: Foreign exchange forwards and options Prepaid expenses and other current assets $ 13 $ 43 Foreign exchange forwards and options Deferred income taxes and other assets 3 1 Total derivatives formally designated as hedging instruments 16 44 Derivatives not designated as hedging instruments: Foreign exchange forwards and options Prepaid expenses and other current assets 30 48 Embedded derivatives Prepaid expenses and other current assets — 1 Foreign exchange forwards and options Deferred income taxes and other assets 2 2 Total derivatives not designated as hedging instruments 32 51 TOTAL DERIVATIVE ASSETS $ 48 $ 95 DERIVATIVE LIABILITIES BALANCE SHEET LOCATION AUGUST 31, MAY 31, (Dollars in millions) 2020 2020 Derivatives formally designated as hedging instruments: Foreign exchange forwards and options Accrued liabilities $ 488 $ 173 Foreign exchange forwards and options Deferred income taxes and other liabilities 144 17 Total derivatives formally designated as hedging instruments 632 190 Derivatives not designated as hedging instruments: Foreign exchange forwards and options Accrued liabilities 23 15 Embedded derivatives Accrued liabilities 1 2 Total derivatives not designated as hedging instruments 24 17 TOTAL DERIVATIVE LIABILITIES $ 656 $ 207 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Aug. 31, 2020 | |
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: THREE MONTHS ENDED AUGUST 31, (Dollars in millions) 2020 2019 Stock options (1) $ 70 $ 42 ESPPs 18 13 Restricted stock 48 25 TOTAL STOCK-BASED COMPENSATION EXPENSE $ 136 $ 80 (1) Expense for stock options includes the expense associated with stock appreciation rights. Accelerated stock option expense is primarily recorded for employees meeting certain retirement eligibility requirements. |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The weighted average assumptions used to estimate these fair values were as follows: THREE MONTHS ENDED AUGUST 31, 2020 2019 Dividend yield 1.0 % 1.1 % Expected volatility 27.2 % 22.9 % Weighted average expected life (in years) 6.0 6.0 Risk-free interest rate 0.3 % 1.7 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Aug. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following is a reconciliation from basic earnings per common share to diluted earnings per common share. The computations of diluted earnings per common share excluded options, including shares under ESPPs, and restricted stock to purchase an additional 2.1 million and 19.1 million shares of common stock outstanding for the three months ended August 31, 2020 and 2019, respectively, because the options were anti-dilutive. THREE MONTHS ENDED AUGUST 31, (In millions, except per share data) 2020 2019 Net income available to common stockholders $ 1,518 $ 1,367 Determination of shares: Weighted average common shares outstanding 1,561.8 1,562.4 Assumed conversion of dilutive stock options and awards 31.5 35.1 DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 1,593.3 1,597.5 Earnings per common share: Basic $ 0.97 $ 0.87 Diluted $ 0.95 $ 0.86 |
Risk Management and Derivativ_2
Risk Management and Derivatives (Tables) | 3 Months Ended |
Aug. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following tables present information about the Company's derivative assets and liabilities measured at fair value on a recurring basis as of August 31, 2020 and May 31, 2020, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement: AUGUST 31, 2020 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) $ 48 $ 43 $ 5 $ 655 $ 511 $ 144 Embedded derivatives — — — 1 1 — TOTAL $ 48 $ 43 $ 5 $ 656 $ 512 $ 144 (1) If the foreign exchange derivative instruments had been netted on the Unaudited Condensed Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $44 million as of August 31, 2020. As of that date, the Company had posted $151 million of cash collateral to various counterparties related to foreign exchange derivative instruments. No amount of collateral was received on the Company's derivative asset balance as of August 31, 2020. MAY 31, 2020 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) $ 94 $ 91 $ 3 $ 205 $ 188 $ 17 Embedded derivatives 1 1 — 2 2 — TOTAL $ 95 $ 92 $ 3 $ 207 $ 190 $ 17 (1) If the foreign exchange derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $76 million as of May 31, 2020. As of that date, no amount of cash collateral had been received or posted on the derivative asset and liability balances related to these foreign exchange derivative instruments. The following tables present the fair values of derivative instruments included within the Unaudited Condensed Consolidated Balance Sheets as of August 31, 2020 and May 31, 2020: DERIVATIVE ASSETS BALANCE SHEET LOCATION AUGUST 31, MAY 31, (Dollars in millions) 2020 2020 Derivatives formally designated as hedging instruments: Foreign exchange forwards and options Prepaid expenses and other current assets $ 13 $ 43 Foreign exchange forwards and options Deferred income taxes and other assets 3 1 Total derivatives formally designated as hedging instruments 16 44 Derivatives not designated as hedging instruments: Foreign exchange forwards and options Prepaid expenses and other current assets 30 48 Embedded derivatives Prepaid expenses and other current assets — 1 Foreign exchange forwards and options Deferred income taxes and other assets 2 2 Total derivatives not designated as hedging instruments 32 51 TOTAL DERIVATIVE ASSETS $ 48 $ 95 DERIVATIVE LIABILITIES BALANCE SHEET LOCATION AUGUST 31, MAY 31, (Dollars in millions) 2020 2020 Derivatives formally designated as hedging instruments: Foreign exchange forwards and options Accrued liabilities $ 488 $ 173 Foreign exchange forwards and options Deferred income taxes and other liabilities 144 17 Total derivatives formally designated as hedging instruments 632 190 Derivatives not designated as hedging instruments: Foreign exchange forwards and options Accrued liabilities 23 15 Embedded derivatives Accrued liabilities 1 2 Total derivatives not designated as hedging instruments 24 17 TOTAL DERIVATIVE LIABILITIES $ 656 $ 207 |
Schedule Of Derivative Instruments, Gain (Loss) In Statement Of Income | The following table presents the amounts in the Unaudited Condensed Consolidated Statements of Income in which the effects of cash flow hedges are recorded and the effects of cash flow hedge activity on these line items for the three months ended August 31, 2020 and 2019: THREE MONTHS ENDED AUGUST 31, 2020 2019 (Dollars in millions) TOTAL AMOUNT OF TOTAL AMOUNT OF Revenues $ 10,594 $ 14 $ 10,660 $ 8 Cost of sales 5,853 114 5,789 75 Demand creation expense 677 1 1,018 — Other (income) expense, net (14) 8 (33) 46 Interest expense (income), net 65 (2) 15 (2) |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following tables present the amounts affecting the Unaudited Condensed Consolidated Statements of Income for the three months ended August 31, 2020 and 2019: (Dollars in millions) AMOUNT OF GAIN (LOSS) (1) AMOUNT OF GAIN (LOSS) (1) THREE MONTHS ENDED AUGUST 31, LOCATION OF GAIN (LOSS) THREE MONTHS ENDED AUGUST 31, 2020 2019 2020 2019 Derivatives designated as cash flow hedges: Foreign exchange forwards and options $ — $ 21 Revenues $ 14 $ 8 Foreign exchange forwards and options (371) 109 Cost of sales 114 75 Foreign exchange forwards and options 1 33 Demand creation expense 1 — Foreign exchange forwards and options (160) — Other (income) expense, net 8 46 Interest rate swaps (2) — — Interest expense (income), net (2) (2) Total designated cash $ (530) $ 163 $ 135 $ 127 (1) For the three months ended August 31, 2020 and 2019, the amounts recorded in Other (income) expense, net as a result of the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial. (2) Gains and losses associated with terminated interest rate swaps, which were previously designated as cash flow hedges and recorded in Accumulated other comprehensive income (loss), will be released through Interest expense (income), net over the term of the issued debt. AMOUNT OF GAIN (LOSS) RECOGNIZED LOCATION OF GAIN (LOSS) THREE MONTHS ENDED AUGUST 31, (Dollars in millions) 2020 2019 Derivatives not designated as hedging instruments: Foreign exchange forwards and options $ (38) $ — Other (income) expense, net Embedded derivatives (4) (1) Other (income) expense, net |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Aug. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | The changes in Accumulated other comprehensive income (loss), net of tax, were as follows: (Dollars in millions) FOREIGN CURRENCY TRANSLATION ADJUSTMENT (1) CASH FLOW HEDGES NET INVESTMENT HEDGES (1) OTHER TOTAL Balance at May 31, 2020 $ (494) $ 390 $ 115 $ (67) $ (56) Other comprehensive income (loss): Other comprehensive gains (losses) before reclassifications (2) 318 (526) — (13) (221) Reclassifications to net income of previously deferred (gains) losses (3) — (132) — 8 (124) Total other comprehensive income (loss) 318 (658) — (5) (345) Balance at August 31, 2020 $ (176) $ (268) $ 115 $ (72) $ (401) (1) The accumulated foreign currency translation adjustment and net investment hedge gains/losses related to an investment in a foreign subsidiary are reclassified to Net income upon sale or upon complete or substantially complete liquidation of the respective entity. (2) Net of tax benefit (expense) of $0 million, $4 million, $0 million, $1 million and $5 million, respectively. (3) Net of tax (benefit) expense of $0 million, $3 million, $0 million, $0 million and $3 million, respectively. (Dollars in millions) FOREIGN CURRENCY TRANSLATION ADJUSTMENT (1) CASH FLOW HEDGES NET INVESTMENT HEDGES (1) OTHER TOTAL Balance at May 31, 2019 $ (346) $ 520 $ 115 $ (58) $ 231 Other comprehensive income (loss): Other comprehensive gains (losses) before reclassifications (2) (89) 163 — 3 77 Reclassifications to net income of previously deferred (gains) losses (3) — (127) — (1) (128) Total other comprehensive income (loss) (89) 36 — 2 (51) Balance at August 31, 2019 $ (435) $ 556 $ 115 $ (56) $ 180 (1) The accumulated foreign currency translation adjustment and net investment hedge gains/losses related to an investment in a foreign subsidiary are reclassified to Net income upon sale or upon complete or substantially complete liquidation of the respective entity. (2) Net of tax benefit (expense) of $0 million, $0 million, $0 million, $0 million and $0 million, respectively. (3) Net of tax (benefit) expense of $0 million, $0 million, $0 million, $0 million and $0 million, respectively. |
Reclassification out of Accumulated Other Comprehensive Income | The following table summarizes the reclassifications from Accumulated other comprehensive income (loss) to the Unaudited Condensed Consolidated Statements of Income: AMOUNT OF GAIN (LOSS) LOCATION OF GAIN (LOSS) THREE MONTHS ENDED AUGUST 31, (Dollars in millions) 2020 2019 Gains (losses) on cash flow hedges: Foreign exchange forwards and options $ 14 $ 8 Revenues Foreign exchange forwards and options 114 75 Cost of sales Foreign exchange forwards and options 1 — Demand creation expense Foreign exchange forwards and options 8 46 Other (income) expense, net Interest rate swaps (2) (2) Interest expense (income), net Total before tax 135 127 Tax (expense) (3) — Gain (loss) net of tax 132 127 Gains (losses) on other (8) 1 Other (income) expense, net Total before tax (8) 1 Tax (expense) — — Gain (loss) net of tax (8) 1 Total net gain (loss) reclassified for the period $ 124 $ 128 |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Aug. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present the Company's revenues disaggregated by reportable operating segment, major product line and by distribution channel: THREE MONTHS ENDED AUGUST 31, 2020 (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 $ 2,957 $ 1,802 $ 1,251 $ 758 $ — $ 6,768 $ 513 $ — $ 7,281 Apparel 1,125 971 478 301 — 2,875 22 — 2,897 Equipment 143 137 51 40 — 371 9 — 380 Other — — — — 4 4 19 13 36 TOTAL REVENUES $ 4,225 $ 2,910 $ 1,780 $ 1,099 $ 4 $ 10,018 $ 563 $ 13 $ 10,594 Revenues by: Sales to Wholesale Customers $ 2,719 $ 1,973 $ 964 $ 708 $ — $ 6,364 $ 373 $ — $ 6,737 Sales through Direct to Consumer 1,506 937 816 391 — 3,650 171 — 3,821 Other — — — — 4 4 19 13 36 TOTAL REVENUES $ 4,225 $ 2,910 $ 1,780 $ 1,099 $ 4 $ 10,018 $ 563 $ 13 $ 10,594 THREE MONTHS ENDED AUGUST 31, 2019 (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 $ 2,669 $ 1,758 $ 1,164 $ 930 $ — $ 6,521 $ 496 $ — $ 7,017 Apparel 1,431 869 465 356 — 3,121 26 — 3,147 Equipment 193 146 50 59 — 448 9 — 457 Other — — — — 6 6 24 9 39 TOTAL REVENUES $ 4,293 $ 2,773 $ 1,679 $ 1,345 $ 6 $ 10,096 $ 555 $ 9 $ 10,660 Revenues by: Sales to Wholesale Customers $ 2,864 $ 2,042 $ 986 $ 950 $ — $ 6,842 $ 367 $ — $ 7,209 Sales through Direct to Consumer 1,429 731 693 395 — 3,248 164 — 3,412 Other — — — — 6 6 24 9 39 TOTAL REVENUES $ 4,293 $ 2,773 $ 1,679 $ 1,345 $ 6 $ 10,096 $ 555 $ 9 $ 10,660 |
Operating Segments (Tables)
Operating Segments (Tables) | 3 Months Ended |
Aug. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Accounts receivable, net, Inventories and Property, plant and equipment, net for operating segments are regularly reviewed by management and are therefore provided below. THREE MONTHS ENDED AUGUST 31, (Dollars in millions) 2020 2019 REVENUES North America $ 4,225 $ 4,293 Europe, Middle East & Africa 2,910 2,773 Greater China 1,780 1,679 Asia Pacific & Latin America 1,099 1,345 Global Brand Divisions 4 6 Total NIKE Brand 10,018 10,096 Converse 563 555 Corporate 13 9 TOTAL NIKE, INC. REVENUES $ 10,594 $ 10,660 EARNINGS BEFORE INTEREST AND TAXES North America $ 1,302 $ 1,100 Europe, Middle East & Africa 692 609 Greater China 688 669 Asia Pacific & Latin America 280 341 Global Brand Divisions (853) (857) Converse 168 138 Corporate (497) (424) Interest expense (income), net 65 15 TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES $ 1,715 $ 1,561 |
Reconciliation of Assets from Segment to Consolidated | AUGUST 31, MAY 31, (Dollars in millions) 2020 2020 ACCOUNTS RECEIVABLE, NET North America $ 1,256 $ 1,020 Europe, Middle East & Africa 1,439 712 Greater China 271 321 Asia Pacific & Latin America (1) 504 425 Global Brand Divisions 81 65 Total NIKE Brand 3,551 2,543 Converse 213 149 Corporate 49 57 TOTAL ACCOUNTS RECEIVABLE, NET $ 3,813 $ 2,749 INVENTORIES North America $ 2,541 $ 3,077 Europe, Middle East & Africa 1,891 2,070 Greater China 1,113 882 Asia Pacific & Latin America (1) 753 770 Global Brand Divisions 137 137 Total NIKE Brand 6,435 6,936 Converse 293 341 Corporate (23) 90 TOTAL INVENTORIES $ 6,705 $ 7,367 AUGUST 31, MAY 31, (Dollars in millions) 2020 2020 PROPERTY, PLANT AND EQUIPMENT, NET North America $ 637 $ 645 Europe, Middle East & Africa 938 885 Greater China 224 214 Asia Pacific & Latin America (1) 305 296 Global Brand Divisions 867 830 Total NIKE Brand 2,971 2,870 Converse 76 80 Corporate 1,922 1,916 TOTAL PROPERTY, PLANT AND EQUIPMENT, NET $ 4,969 $ 4,866 (1) Excludes assets held-for-sale as of August 31, 2020 and May 31, 2020. See Note 13 — Acquisitions and Divestitures for additional information. |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Millions | Aug. 31, 2020 | May 31, 2020 |
Inventory Disclosure [Abstract] | ||
Inventory, Finished Goods, Net of Reserves | $ 6,705 | $ 7,367 |
Accrued Liabilities (Detail)
Accrued Liabilities (Detail) - USD ($) $ in Millions | Aug. 31, 2020 | May 31, 2020 |
Accrued Liabilities, Current [Abstract] | ||
Sales-related reserves | $ 1,127 | $ 1,178 |
Compensation and benefits, excluding taxes | 950 | 1,248 |
Fair value of derivatives | 512 | 190 |
Allowance for cumulative foreign currency translation losses | 438 | 405 |
Other | 2,715 | 2,163 |
TOTAL ACCRUED LIABILITIES | $ 5,742 | $ 5,184 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Aug. 31, 2020 | May 31, 2020 |
Assets, Fair Value Disclosure [Abstract] | ||
Cash | $ 542 | $ 596 |
ASSETS AT FAIR VALUE | 9,480 | 8,787 |
CASH AND EQUIVALENTS | 8,148 | 8,348 |
SHORT-TERM INVESTMENTS | 1,332 | 439 |
Fair Value, Inputs, Level 1 | U.S. Treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
ASSETS AT FAIR VALUE | 1,695 | 1,204 |
CASH AND EQUIVALENTS | 400 | 800 |
SHORT-TERM INVESTMENTS | 1,295 | 404 |
Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
ASSETS AT FAIR VALUE | 7,243 | 6,987 |
CASH AND EQUIVALENTS | 7,206 | 6,952 |
SHORT-TERM INVESTMENTS | 37 | 35 |
Fair Value, Inputs, Level 2 | Commercial paper and bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
ASSETS AT FAIR VALUE | 33 | 32 |
CASH AND EQUIVALENTS | 0 | 0 |
SHORT-TERM INVESTMENTS | 33 | 32 |
Fair Value, Inputs, Level 2 | Money market funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
ASSETS AT FAIR VALUE | 6,340 | 5,973 |
CASH AND EQUIVALENTS | 6,340 | 5,973 |
SHORT-TERM INVESTMENTS | 0 | 0 |
Fair Value, Inputs, Level 2 | Time deposits | ||
Assets, Fair Value Disclosure [Abstract] | ||
ASSETS AT FAIR VALUE | 867 | 981 |
CASH AND EQUIVALENTS | 866 | 979 |
SHORT-TERM INVESTMENTS | 1 | 2 |
Fair Value, Inputs, Level 2 | U.S. Agency securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
ASSETS AT FAIR VALUE | 3 | 1 |
CASH AND EQUIVALENTS | 0 | 0 |
SHORT-TERM INVESTMENTS | $ 3 | $ 1 |
Fair Value Measurements - Deriv
Fair Value Measurements - Derivative Assets and Liabilities at Fair Value (Detail) - USD ($) | Aug. 31, 2020 | May 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
ACCRUED LIABILITIES | $ 512,000,000 | $ 190,000,000 |
Fair Value, Measurements, Recurring | Foreign exchange forwards and options | ||
Derivatives, Fair Value [Line Items] | ||
Reduction in derivative liabilities if netted | 44,000,000 | 76,000,000 |
Reduction in derivative assets if netted | 44,000,000 | 76,000,000 |
Cash and Cash Equivalents | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value of collateral | 0 | |
Cash and Cash Equivalents | Foreign exchange forwards and options | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value of collateral | 151,000,000 | 0 |
Fair value of derivative liability collateral | 0 | 0 |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ||
Derivatives, Fair Value [Line Items] | ||
ASSETS AT FAIR VALUE | 48,000,000 | 95,000,000 |
OTHER CURRENT ASSETS | 43,000,000 | 92,000,000 |
OTHER LONG-TERM ASSETS | 5,000,000 | 3,000,000 |
LIABILITIES AT FAIR VALUE | 656,000,000 | 207,000,000 |
ACCRUED LIABILITIES | 512,000,000 | 190,000,000 |
OTHER LONG-TERM LIABILITIES | 144,000,000 | 17,000,000 |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Foreign exchange forwards and options | ||
Derivatives, Fair Value [Line Items] | ||
ASSETS AT FAIR VALUE | 48,000,000 | 94,000,000 |
OTHER CURRENT ASSETS | 43,000,000 | 91,000,000 |
OTHER LONG-TERM ASSETS | 5,000,000 | 3,000,000 |
LIABILITIES AT FAIR VALUE | 655,000,000 | 205,000,000 |
ACCRUED LIABILITIES | 511,000,000 | 188,000,000 |
OTHER LONG-TERM LIABILITIES | 144,000,000 | 17,000,000 |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Embedded derivatives | ||
Derivatives, Fair Value [Line Items] | ||
ASSETS AT FAIR VALUE | 0 | 1,000,000 |
OTHER CURRENT ASSETS | 0 | 1,000,000 |
OTHER LONG-TERM ASSETS | 0 | 0 |
LIABILITIES AT FAIR VALUE | 1,000,000 | 2,000,000 |
ACCRUED LIABILITIES | 1,000,000 | 2,000,000 |
OTHER LONG-TERM LIABILITIES | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | May 31, 2020 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair value of long term debt | $ 10,731 | $ 10,731 | $ 10,645 | |
Short-term Investments | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Available-for-sale securities with maturity dates within one year from purchase date | 1,291 | 1,291 | ||
Available-for-sale securities with maturity dates over one year and less than five years from purchase date | 41 | 41 | ||
Interest (income) expense, net | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Interest income related to cash and equivalents and short-term investments | $ 7 | $ 21 | ||
Grupo Axo and SBF | Discontinued Operations, Held-for-sale | NIKE Brand Businesses | Brazil, Argentina, Chile and Uruguay | Other Income (Expense) | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Non-recurring impairment charge | $ 438 | $ 405 |
Short-Term Borrowings and Cre_2
Short-Term Borrowings and Credit Lines (Detail) - Commercial paper - USD ($) | Aug. 31, 2020 | May 31, 2020 |
Short-term Debt [Line Items] | ||
Line of credit facility, amount outstanding | $ 112,000,000 | $ 248,000,000 |
Weighted average interest rate | 1.72% | 1.65% |
Borrowing capacity | $ 4,000,000,000 |
Income Taxes (Detail)
Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | May 31, 2020 | |
Income Tax Contingency [Line Items] | |||
Federal income tax rate | 11.50% | 12.40% | |
Total gross unrecognized tax benefits, excluding related interest and penalties | $ 860 | $ 771 | |
Total gross unrecognized tax benefits, excluding related interest and penalties, amount which would affect the Company's effective tax rate if recognized in future periods | 584 | ||
Income tax expense | 197 | $ 194 | |
Increase (decrease) in liability for payment of interest and penalties | (21) | ||
Accrued interest and penalties related to uncertain tax positions (excluding federal benefit) | 179 | $ 158 | |
Estimated decrease in total gross unrecognized tax benefits as a result of resolutions of global tax examinations and expiration of applicable statutes of limitations | 50 | ||
Altera Corp. V. Commissioner | |||
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits recognized | 77 | ||
Income tax expense | $ 71 |
Stock-Based Compensation - Tota
Stock-Based Compensation - Total Stock-Based Compensation Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 136 | $ 80 |
Tax benefit related to stock-based compensation expense | 81 | 37 |
Class B Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 136 | 80 |
Stock Incentive Plan | Class B Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for grant (in shares) | 798,000,000 | |
Stock options | Class B Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 70 | 42 |
ESPPs | Class B Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 18 | 13 |
Restricted stock | Class B Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 48 | $ 25 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted Average Assumptions Used to Estimate Fair Values (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value per share of the options granted (in dollars per share) | $ 22.55 | $ 18.33 |
Dividend yield | 1.00% | 1.10% |
Expected volatility | 27.20% | 22.90% |
Weighted average expected life | 6 years | 6 years |
Risk-free interest rate | 0.30% | 1.70% |
Stock Incentive Plan | Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation costs from stock options | $ 378 | |
Unrecognized compensation costs from stock options, net of estimated forfeitures, to be recognized as operating overhead expense over a weighted average period (in years) | 2 years 4 months 24 days | |
Class B Common Stock | Stock Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Minimum term of market traded options for estimates of expected volatility | 1 year |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock and Restricted Stock Units (Details) - Restricted Stock And Restricted Stock Units - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value (in dollars per share) | $ 98.47 | $ 84.19 |
Unrecognized compensation costs from restricted stock, net of estimated forfeitures | $ 394 | |
Unrecognized compensation costs from stock options, net of estimated forfeitures, to be recognized as operating overhead expense over a weighted average period (in years) | 2 years 8 months 12 days |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
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) | 2.1 | 19.1 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation from Basic Earnings Per Share to Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net income available to common stockholders | $ 1,518 | $ 1,367 |
Determination of shares: | ||
Weighted average common shares outstanding (in shares) | 1,561.8 | 1,562.4 |
Assumed conversion of dilutive stock options and awards (in shares) | 31.5 | 35.1 |
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (in shares) | 1,593.3 | 1,597.5 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 0.97 | $ 0.87 |
Diluted (in dollars per share) | $ 0.95 | $ 0.86 |
Risk Management and Derivativ_3
Risk Management and Derivatives - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Aug. 31, 2020 | May 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Credit risk related contingent features collateral threshold | $ 50,000,000 | |
Deferred net gains (net of tax) on both outstanding and matured derivatives accumulated in other comprehensive income are expected to be reclassified to net income during the next twelve months as a result of underlying hedged transactions also being recorded in net income | $ 97,000,000 | |
Maximum term over which the Company is hedging exposures to the variability of cash flows for its forecasted and recorded transactions (in months) | 27 months | |
Derivative instruments in net liability position | $ 611,000,000 | |
Not designated as derivative instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total notional amount of outstanding derivatives | 4,200,000,000 | |
Embedded derivatives | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total notional amount of outstanding derivatives | $ 351,000,000 | |
Derivatives designated as cash flow hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Additional period for forecasted transaction expected to occur | 2 months | |
Total notional amount of outstanding derivatives | $ 13,900,000,000 | |
Cash and Cash Equivalents | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative asset, fair value of collateral | 0 | |
Cash and Cash Equivalents | Foreign exchange forwards and options | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative asset, fair value of collateral | $ 151,000,000 | $ 0 |
Risk Management and Derivativ_4
Risk Management and Derivatives - FV of Derivative Instruments Included within Consolidated Balance Sheet (Detail) - USD ($) $ in Millions | Aug. 31, 2020 | May 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
DERIVATIVE ASSETS | $ 48 | $ 95 |
DERIVATIVE LIABILITIES | 656 | 207 |
Derivatives formally designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
DERIVATIVE ASSETS | 16 | 44 |
DERIVATIVE LIABILITIES | 632 | 190 |
Derivatives formally designated as hedging instruments | Foreign exchange forwards and options | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
DERIVATIVE ASSETS | 13 | 43 |
Derivatives formally designated as hedging instruments | Foreign exchange forwards and options | Deferred income taxes and other assets | ||
Derivatives, Fair Value [Line Items] | ||
DERIVATIVE ASSETS | 3 | 1 |
Derivatives formally designated as hedging instruments | Foreign exchange forwards and options | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
DERIVATIVE LIABILITIES | 488 | 173 |
Derivatives formally designated as hedging instruments | Foreign exchange forwards and options | Deferred income taxes and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
DERIVATIVE LIABILITIES | 144 | 17 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
DERIVATIVE ASSETS | 32 | 51 |
DERIVATIVE LIABILITIES | 24 | 17 |
Derivatives not designated as hedging instruments | Foreign exchange forwards and options | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
DERIVATIVE ASSETS | 30 | 48 |
Derivatives not designated as hedging instruments | Foreign exchange forwards and options | Deferred income taxes and other assets | ||
Derivatives, Fair Value [Line Items] | ||
DERIVATIVE ASSETS | 2 | 2 |
Derivatives not designated as hedging instruments | Foreign exchange forwards and options | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
DERIVATIVE LIABILITIES | 23 | 15 |
Derivatives not designated as hedging instruments | Embedded derivatives | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
DERIVATIVE ASSETS | 0 | 1 |
Derivatives not designated as hedging instruments | Embedded derivatives | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
DERIVATIVE LIABILITIES | $ 1 | $ 2 |
Risk Management and Derivativ_5
Risk Management and Derivatives - Effects Of Cash Flow Hedges in Statement of Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Revenues | $ 10,594 | $ 10,660 |
Cost of sales | 5,853 | 5,789 |
Demand creation expense | 677 | 1,018 |
Other (income) expense, net | (14) | (33) |
Interest expense (income), net | 65 | 15 |
Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY | 135 | 127 |
Foreign exchange forwards and options | Revenue | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY | 14 | 8 |
Foreign exchange forwards and options | Cost of sales | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY | 114 | 75 |
Foreign exchange forwards and options | Demand creation expense | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY | 1 | 0 |
Foreign exchange forwards and options | Other (income) expense, net | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY | 8 | 46 |
Interest rate swaps | Interest (income) expense, net | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY | $ (2) | $ (2) |
Risk Management and Derivativ_6
Risk Management and Derivatives - Amounts Affecting Consolidated Statements of Income (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Foreign Exchange Contract | Other (income) expense, net | Derivatives not designated as hedging instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
AMOUNT OF GAIN (LOSS) RECOGNIZED IN INCOME ON DERIVATIVES | $ (38) | $ 0 |
Embedded derivatives | Other (income) expense, net | Derivatives not designated as hedging instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
AMOUNT OF GAIN (LOSS) RECOGNIZED IN INCOME ON DERIVATIVES | (4) | (1) |
Derivatives designated as cash flow hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives | (530) | 163 |
Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income | 135 | 127 |
Derivatives designated as cash flow hedges | Foreign Exchange Contract | Revenue | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives | 0 | 21 |
Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income | 14 | 8 |
Derivatives designated as cash flow hedges | Foreign Exchange Contract | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives | (371) | 109 |
Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income | 114 | 75 |
Derivatives designated as cash flow hedges | Foreign Exchange Contract | Demand creation expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives | 1 | 33 |
Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income | 1 | 0 |
Derivatives designated as cash flow hedges | Foreign Exchange Contract | Other (income) expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives | (160) | 0 |
Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income | 8 | 46 |
Derivatives designated as cash flow hedges | Interest rate swaps | Interest (income) expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives | 0 | 0 |
Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income | $ (2) | $ (2) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Changes in AOCI (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | $ 8,055 | $ 9,040 |
Other comprehensive income (loss): | ||
Other comprehensive gains (losses) before reclassifications, net of tax | (221) | 77 |
Reclassifications to net income of previously deferred (gains) losses, net of tax | (124) | (128) |
Total other comprehensive income (loss), net of tax | (345) | (51) |
Ending balance | 9,224 | 9,200 |
Other comprehensive income, before reclassification, tax benefit (expense) | 5 | 0 |
Reclassification from AOCI, current period, tax expense (benefit) | 3 | 0 |
Gains (losses) on foreign currency translation adjustment | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (494) | (346) |
Other comprehensive income (loss): | ||
Other comprehensive gains (losses) before reclassifications, net of tax | 318 | (89) |
Reclassifications to net income of previously deferred (gains) losses, net of tax | 0 | 0 |
Total other comprehensive income (loss), net of tax | 318 | (89) |
Ending balance | (176) | (435) |
Other comprehensive income, before reclassification, tax benefit (expense) | 0 | 0 |
Reclassification from AOCI, current period, tax expense (benefit) | 0 | 0 |
CASH FLOW HEDGES | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 390 | 520 |
Other comprehensive income (loss): | ||
Other comprehensive gains (losses) before reclassifications, net of tax | (526) | 163 |
Reclassifications to net income of previously deferred (gains) losses, net of tax | (132) | (127) |
Total other comprehensive income (loss), net of tax | (658) | 36 |
Ending balance | (268) | 556 |
Other comprehensive income, before reclassification, tax benefit (expense) | 4 | 0 |
Reclassification from AOCI, current period, tax expense (benefit) | 3 | 0 |
Net Investment Hedges | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 115 | 115 |
Other comprehensive income (loss): | ||
Other comprehensive gains (losses) before reclassifications, net of tax | 0 | 0 |
Reclassifications to net income of previously deferred (gains) losses, net of tax | 0 | 0 |
Total other comprehensive income (loss), net of tax | 0 | 0 |
Ending balance | 115 | 115 |
Other comprehensive income, before reclassification, tax benefit (expense) | 0 | 0 |
Reclassification from AOCI, current period, tax expense (benefit) | 0 | 0 |
OTHER | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (67) | (58) |
Other comprehensive income (loss): | ||
Other comprehensive gains (losses) before reclassifications, net of tax | (13) | 3 |
Reclassifications to net income of previously deferred (gains) losses, net of tax | 8 | (1) |
Total other comprehensive income (loss), net of tax | (5) | 2 |
Ending balance | (72) | (56) |
Other comprehensive income, before reclassification, tax benefit (expense) | 1 | 0 |
Reclassification from AOCI, current period, tax expense (benefit) | 0 | 0 |
TOTAL | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (56) | 231 |
Other comprehensive income (loss): | ||
Ending balance | $ (401) | $ 180 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassification out of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Revenues | $ 10,594 | $ 10,660 |
Cost of sales | (5,853) | (5,789) |
Demand creation expense | (677) | (1,018) |
Other (income) expense, net | 14 | 33 |
Interest expense (income), net | (65) | (15) |
Income before income taxes | 1,715 | 1,561 |
Tax benefit (expense) | (197) | (194) |
AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Gain (loss), net of tax | 124 | 128 |
Gain (losses) on cash flow hedges | AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Income before income taxes | 135 | 127 |
Tax benefit (expense) | (3) | 0 |
Gain (loss), net of tax | 132 | 127 |
Gain (losses) on cash flow hedges | Foreign exchange forwards and options | AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Revenues | 14 | 8 |
Cost of sales | 114 | 75 |
Demand creation expense | 1 | 0 |
Other (income) expense, net | 8 | 46 |
Gain (losses) on cash flow hedges | Interest rate swaps | AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense (income), net | (2) | (2) |
OTHER | AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Other (income) expense, net | (8) | 1 |
Income before income taxes | (8) | 1 |
Tax benefit (expense) | 0 | 0 |
Gain (loss), net of tax | $ (8) | $ 1 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 10,594 | $ 10,660 |
Sales to Wholesale Customers | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 6,737 | 7,209 |
Sales through Direct to Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3,821 | 3,412 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 36 | 39 |
Footwear | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 7,281 | 7,017 |
Apparel | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,897 | 3,147 |
Equipment | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 380 | 457 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 36 | 39 |
Operating Segments | NIKE Brand | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 10,018 | 10,096 |
Operating Segments | NIKE Brand | Sales to Wholesale Customers | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 6,364 | 6,842 |
Operating Segments | NIKE Brand | Sales through Direct to Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3,650 | 3,248 |
Operating Segments | NIKE Brand | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 4 | 6 |
Operating Segments | NIKE Brand | Footwear | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 6,768 | 6,521 |
Operating Segments | NIKE Brand | Apparel | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,875 | 3,121 |
Operating Segments | NIKE Brand | Equipment | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 371 | 448 |
Operating Segments | NIKE Brand | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 4 | 6 |
Operating Segments | Converse | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 563 | 555 |
Operating Segments | Converse | Sales to Wholesale Customers | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 373 | 367 |
Operating Segments | Converse | Sales through Direct to Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 171 | 164 |
Operating Segments | Converse | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 19 | 24 |
Operating Segments | Converse | Footwear | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 513 | 496 |
Operating Segments | Converse | Apparel | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 22 | 26 |
Operating Segments | Converse | Equipment | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 9 | 9 |
Operating Segments | Converse | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 19 | 24 |
Global Brand Divisions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 4 | 6 |
Global Brand Divisions | Sales to Wholesale Customers | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Global Brand Divisions | Sales through Direct to Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Global Brand Divisions | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 4 | 6 |
Global Brand Divisions | Footwear | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Global Brand Divisions | Apparel | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Global Brand Divisions | Equipment | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Global Brand Divisions | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 4 | 6 |
Corporate | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 13 | 9 |
Corporate | Sales to Wholesale Customers | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Corporate | Sales through Direct to Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Corporate | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 13 | 9 |
Corporate | Footwear | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Corporate | Apparel | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Corporate | Equipment | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Corporate | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 13 | 9 |
North America | Operating Segments | NIKE Brand | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 4,225 | 4,293 |
North America | Operating Segments | NIKE Brand | Sales to Wholesale Customers | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,719 | 2,864 |
North America | Operating Segments | NIKE Brand | Sales through Direct to Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,506 | 1,429 |
North America | Operating Segments | NIKE Brand | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
North America | Operating Segments | NIKE Brand | Footwear | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,957 | 2,669 |
North America | Operating Segments | NIKE Brand | Apparel | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,125 | 1,431 |
North America | Operating Segments | NIKE Brand | Equipment | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 143 | 193 |
North America | Operating Segments | NIKE Brand | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Europe, Middle East & Africa | Operating Segments | NIKE Brand | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,910 | 2,773 |
Europe, Middle East & Africa | Operating Segments | NIKE Brand | Sales to Wholesale Customers | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,973 | 2,042 |
Europe, Middle East & Africa | Operating Segments | NIKE Brand | Sales through Direct to Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 937 | 731 |
Europe, Middle East & Africa | Operating Segments | NIKE Brand | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Europe, Middle East & Africa | Operating Segments | NIKE Brand | Footwear | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,802 | 1,758 |
Europe, Middle East & Africa | Operating Segments | NIKE Brand | Apparel | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 971 | 869 |
Europe, Middle East & Africa | Operating Segments | NIKE Brand | Equipment | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 137 | 146 |
Europe, Middle East & Africa | Operating Segments | NIKE Brand | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Greater China | Operating Segments | NIKE Brand | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,780 | 1,679 |
Greater China | Operating Segments | NIKE Brand | Sales to Wholesale Customers | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 964 | 986 |
Greater China | Operating Segments | NIKE Brand | Sales through Direct to Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 816 | 693 |
Greater China | Operating Segments | NIKE Brand | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Greater China | Operating Segments | NIKE Brand | Footwear | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,251 | 1,164 |
Greater China | Operating Segments | NIKE Brand | Apparel | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 478 | 465 |
Greater China | Operating Segments | NIKE Brand | Equipment | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 51 | 50 |
Greater China | Operating Segments | NIKE Brand | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Asia Pacific & Latin America | Operating Segments | NIKE Brand | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,099 | 1,345 |
Asia Pacific & Latin America | Operating Segments | NIKE Brand | Sales to Wholesale Customers | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 708 | 950 |
Asia Pacific & Latin America | Operating Segments | NIKE Brand | Sales through Direct to Consumer | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 391 | 395 |
Asia Pacific & Latin America | Operating Segments | NIKE Brand | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Asia Pacific & Latin America | Operating Segments | NIKE Brand | Footwear | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 758 | 930 |
Asia Pacific & Latin America | Operating Segments | NIKE Brand | Apparel | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 301 | 356 |
Asia Pacific & Latin America | Operating Segments | NIKE Brand | Equipment | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 40 | 59 |
Asia Pacific & Latin America | Operating Segments | NIKE Brand | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 0 | $ 0 |
Operating Segments - Informatio
Operating Segments - Information by Operating Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | $ 10,594 | $ 10,660 |
Interest expense (income), net | 65 | 15 |
Income before income taxes | 1,715 | 1,561 |
Global Brand Divisions | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 4 | 6 |
Corporate | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 13 | 9 |
EARNINGS BEFORE INTEREST AND TAXES | (497) | (424) |
NIKE Brand | Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 10,018 | 10,096 |
Converse | Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 563 | 555 |
NIKE Brand | Global Brand Divisions | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 4 | 6 |
EARNINGS BEFORE INTEREST AND TAXES | (853) | (857) |
NIKE Brand | NIKE Brand | Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 10,018 | 10,096 |
Converse | Converse | Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 563 | 555 |
EARNINGS BEFORE INTEREST AND TAXES | 168 | 138 |
North America | NIKE Brand | Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 4,225 | 4,293 |
North America | NIKE Brand | NIKE Brand | Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 4,225 | 4,293 |
EARNINGS BEFORE INTEREST AND TAXES | 1,302 | 1,100 |
Europe, Middle East & Africa | NIKE Brand | Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 2,910 | 2,773 |
Europe, Middle East & Africa | NIKE Brand | NIKE Brand | Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 2,910 | 2,773 |
EARNINGS BEFORE INTEREST AND TAXES | 692 | 609 |
Greater China | NIKE Brand | Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 1,780 | 1,679 |
Greater China | NIKE Brand | NIKE Brand | Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 1,780 | 1,679 |
EARNINGS BEFORE INTEREST AND TAXES | 688 | 669 |
Asia Pacific & Latin America | NIKE Brand | Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 1,099 | 1,345 |
Asia Pacific & Latin America | NIKE Brand | NIKE Brand | Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 1,099 | 1,345 |
EARNINGS BEFORE INTEREST AND TAXES | $ 280 | $ 341 |
Operating Segments - Accounts R
Operating Segments - Accounts Receivable Net Inventories and Property Plant and Equipment Net by Operating Segments (Detail) - USD ($) $ in Millions | Aug. 31, 2020 | May 31, 2020 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Accounts receivable, net | $ 3,813 | $ 2,749 |
Inventories | 6,705 | 7,367 |
Property, plant and equipment, net | 4,969 | 4,866 |
Corporate | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Accounts receivable, net | 49 | 57 |
Inventories | (23) | 90 |
Property, plant and equipment, net | 1,922 | 1,916 |
Converse | Converse | Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Accounts receivable, net | 213 | 149 |
Inventories | 293 | 341 |
Property, plant and equipment, net | 76 | 80 |
NIKE Brand | Global Brand Divisions | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Accounts receivable, net | 81 | 65 |
Inventories | 137 | 137 |
Property, plant and equipment, net | 867 | 830 |
NIKE Brand | NIKE Brand | Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Accounts receivable, net | 3,551 | 2,543 |
Inventories | 6,435 | 6,936 |
Property, plant and equipment, net | 2,971 | 2,870 |
North America | NIKE Brand | NIKE Brand | Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Accounts receivable, net | 1,256 | 1,020 |
Inventories | 2,541 | 3,077 |
Property, plant and equipment, net | 637 | 645 |
Europe, Middle East & Africa | NIKE Brand | NIKE Brand | Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Accounts receivable, net | 1,439 | 712 |
Inventories | 1,891 | 2,070 |
Property, plant and equipment, net | 938 | 885 |
Greater China | NIKE Brand | NIKE Brand | Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Accounts receivable, net | 271 | 321 |
Inventories | 1,113 | 882 |
Property, plant and equipment, net | 224 | 214 |
Asia Pacific & Latin America | NIKE Brand | NIKE Brand | Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Accounts receivable, net | 504 | 425 |
Inventories | 753 | 770 |
Property, plant and equipment, net | $ 305 | $ 296 |
Acquisitions And Divestitures (
Acquisitions And Divestitures (Details) - Discontinued Operations, Held-for-sale - Grupo Axo and SBF - Brazil, Argentina, Chile and Uruguay - NIKE Brand Businesses - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Aug. 31, 2020 | May 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets, held-for-sale | $ 545 | $ 506 |
Inventories, held-for-sale | 272 | 264 |
Accounts receivable, held-for-sale | 174 | 138 |
Prepaid expenses and other current assets, held-for-sale | 54 | |
Liabilities, held-for-sale | 88 | 146 |
Accrued liabilities, held-for-sale | 52 | 85 |
Accounts payable, held-for-sale | 26 | 49 |
Other Income (Expense) | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Non-recurring impairment charge | $ 438 | $ 405 |
Restructuring and Related Activ
Restructuring and Related Activities (Details) $ in Millions | Aug. 31, 2020USD ($) |
One-time Termination Benefits | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring, expected cost | $ 315 |
Uncategorized Items - nke-20200
Label | Element | Value |
Accounting Standards Update 2016-02 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (1,000,000) |
Accounting Standards Update 2016-02 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (1,000,000) |