Document and Entity Information

9 Months Ended

Feb. 28, 2015

Apr. 2, 2015

Document Type

10-Q

Amendment Flag

false

Document Period End Date

Feb. 28, 2015

Document Fiscal Year Focus

2015

Document Fiscal Period Focus

Q3

Trading Symbol

NKE

Entity Registrant Name

NIKE INC

Entity Central Index Key

0000320187

Current Fiscal Year End Date

--05-31

Entity Well-known Seasoned Issuer

Yes

Entity Current Reporting Status

Yes

Entity Voluntary Filers

No

Entity Filer Category

Large Accelerated Filer

Entity Common Stock Shares Outstanding (In Shares)

859,747,555

Class A Convertible Common Stock

Entity Common Stock Shares Outstanding (In Shares)

177,557,876

Class B Common Stock

Entity Common Stock Shares Outstanding (In Shares)

682,189,679

Unaudited Condensed Consolidated Balance Sheets (USD $)

In Millions, unless otherwise specified

Feb. 28, 2015

May 31, 2014

Current assets:

Cash and equivalents (Note 4)

$ 3,015

$ 2,220

Short-term investments (Note 4)

2,346

2,922

Accounts receivable, net

3,294

3,434

Inventories (Note 2)

4,246

3,947

Deferred income taxes (Note 5)

328

355

Prepaid expenses and other current assets (Notes 4 and 8)

1,978

818

Total current assets

15,207

13,696

Property, plant and equipment, net

2,862

2,834

Identifiable intangible assets, net

281

282

Goodwill

131

Deferred income taxes and other assets (Notes 4, 5 and 8)

2,060

1,651

TOTAL ASSETS

20,541

18,594

Current liabilities:

Current portion of long-term debt (Note 4)

108

7

Notes payable (Note 4)

61

167

Accounts payable

1,821

1,930

Accrued liabilities (Notes 3, 4 and 8)

3,563

2,491

Income taxes payable (Note 5)

33

432

Total current liabilities

5,586

5,027

Long-term debt (Note 4)

1,082

1,199

Deferred income taxes and other liabilities (Notes 4, 5 and 8)

1,505

1,544

Commitments and contingencies (Note 11)

Redeemable preferred stock

0

Shareholders’ equity:

Capital in excess of stated value

6,517

5,865

Accumulated other comprehensive income (Note 9)

1,111

85

Retained earnings

4,737

4,871

Total shareholders’ equity

12,368

10,824

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

20,541

18,594

Class A Convertible Common Stock

Shareholders’ equity:

Common Stock

0

Class B Common Stock

Shareholders’ equity:

Common Stock

$ 3

Unaudited Condensed Consolidated Balance Sheets (Parenthetical)

In Millions, unless otherwise specified

Feb. 28, 2015

May 31, 2014

Class A Convertible Common Stock

Common Stock, shares outstanding

178

Class B Common Stock

Common Stock, shares outstanding

682

692

Unaudited Condensed Consolidated Statements Of Income (USD $)

In Millions, except Per Share data, unless otherwise specified

3 Months Ended

9 Months Ended

Feb. 28, 2015

Feb. 28, 2014

Feb. 28, 2015

Feb. 28, 2014

Revenues

$ 7,460

$ 6,972

$ 22,822

$ 20,374

Cost of sales

4,034

3,869

12,348

11,313

Gross profit

3,426

3,103

10,474

9,061

Demand creation expense

731

733

2,394

2,155

Operating overhead expense

1,648

1,436

4,903

4,163

Total selling and administrative expense

2,379

2,169

7,297

6,318

Interest expense (income), net

6

9

24

25

Other (income) expense, net

(5)

45

0

86

Income before income taxes

1,046

880

3,153

2,632

Income tax expense (Note 5)

255

198

745

637

NET INCOME

$ 791

$ 682

$ 2,408

$ 1,995

Earnings per common share:

Basic earnings per common share for NIKE, Inc. (in dollars per share)

$ 0.92

$ 0.77

$ 2.79

$ 2.25

Diluted earnings per common share for NIKE, Inc. (in dollars per share)

$ 0.89

$ 0.75

$ 2.72

$ 2.19

Dividends declared per common share (in dollars per share)

$ 0.28

$ 0.24

$ 0.80

$ 0.69

Unaudited Condensed Consolidated Statements of Comprehensive Income (USD $)

In Millions, unless otherwise specified

3 Months Ended

9 Months Ended

Feb. 28, 2015

Feb. 28, 2014

Feb. 28, 2015

Feb. 28, 2014

Net income

$ 791

$ 682

$ 2,408

$ 1,995

Other comprehensive income (loss), net of tax:

Change in net foreign currency translation adjustment

15

(34)

(17)

(51)

Change in net gains (losses) on cash flow hedges

569

(21)

1,037

(186)

Change in net gains (losses) on other

2

(2)

6

(4)

Total other comprehensive income (loss), net of tax

586

(57)

1,026

(241)

TOTAL COMPREHENSIVE INCOME

$ 1,377

$ 625

$ 3,434

$ 1,754

Unaudited Condensed Consolidated Statements of Cash Flows (USD $)

In Millions, unless otherwise specified

9 Months Ended

Feb. 28, 2015

Feb. 28, 2014

Cash provided by operations:

Net income

$ 2,408

$ 1,995

Income charges (credits) not affecting cash:

Depreciation

453

378

Deferred income taxes

43

(56)

Stock-based compensation (Note 6)

140

131

Amortization and other

28

53

Net foreign currency adjustments

411

59

Changes in certain working capital components and other assets and liabilities:

(Increase) in accounts receivable

(109)

(255)

(Increase) in inventories

(510)

(349)

(Increase) in prepaid expenses and other current assets

(31)

(222)

Increase (decrease) in accounts payable, accrued liabilities and income taxes payable

505

(49)

Cash provided by operations

3,338

1,685

Cash used by investing activities:

Purchases of short-term investments

(3,754)

(4,235)

Maturities of short-term investments

2,624

2,885

Sales of short-term investments

1,718

789

Investments in reverse repurchase agreements

(250)

0

Additions to property, plant and equipment

(723)

(670)

Disposals of property, plant and equipment

3

1

(Increase) in other assets, net of other liabilities

0

(1)

Cash used by investing activities

(382)

(1,231)

Cash used by financing activities:

Long-term debt payments, including current portion

(5)

(58)

(Decrease) increase in notes payable

(83)

37

Payments on capital lease obligations

(16)

(9)

Proceeds from exercise of stock options and other stock issuances

372

308

Excess tax benefits from share-based payment arrangements

150

108

Repurchase of common stock

(1,855)

(1,716)

Dividends — common and preferred

(658)

(587)

Cash used by financing activities

(2,095)

(1,917)

Effect of exchange rate changes on cash and equivalents

(66)

(10)

Net increase (decrease) in cash and equivalents

795

(1,473)

Cash and equivalents, beginning of period

2,220

3,337

CASH AND EQUIVALENTS, END OF PERIOD

3,015

1,864

Cash paid during the year for:

Non-cash additions to property, plant and equipment

95

117

Dividends declared and not paid

$ 241

$ 211

Summary of Significant Accounting Policies

NOTE 1 — Summary of Significant Accounting Policies

Basis of Presentation

The accompanying Unaudited Condensed Consolidated Financial Statements reflect all normal adjustments which are, in the opinion of management, necessary for a fair statement of the results of operations for the interim period. The year-end Condensed Consolidated Balance Sheet data as of May 31, 2014 was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). The interim financial information and notes thereto should be read in conjunction with the Company’s latest Annual Report on Form 10-K. The results of operations for the three and nine months ended February 28, 2015 are not necessarily indicative of results to be expected for the entire year.

Reclassifications

Certain prior year amounts have been reclassified to conform to fiscal 2015 presentation.

Revisions

During the third quarter of fiscal 2015, management determined it had incorrectly reflected unrealized gains and losses from re-measurement of non-functional currency intercompany balances between certain of its foreign wholly-owned subsidiaries in its Consolidated Statements of Cash Flows. These unrealized gains and losses should have been classified as non-cash reconciling items from Net income to Cash provided by operations, but were instead reported on the Effect of exchange rate changes on cash and equivalents line of the Consolidated Statements of Cash Flows. This resulted in an understatement of Cash provided by operations reported on the Consolidated Statements of Cash Flows for certain prior periods; there was no impact for any period to Net increase (decrease) in cash and equivalents reported on the Consolidated Statements of Cash Flows, or Cash and equivalents reported on the Consolidated Statements of Cash Flows and Balance Sheets. The Company assessed the materiality of the misclassifications on prior periods' financial statements in accordance with SEC Staff Accounting Bulletin ("SAB") No. 99, Materiality, codified in Accounting Standards Codification ("ASC") 250, Presentation of Financial Statements, and concluded that these misstatements were not material to any prior annual or interim periods. Accordingly, in accordance with ASC 250 (SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements), the amounts have been revised in the applicable Consolidated Statements of Cash Flows. For the three and six months ended August 31, 2014 and November 30, 2014 of fiscal 2015, the revisions increased Cash provided by operations and decreased Effect of exchange rate changes on cash and equivalents by $95 million and $312 million, respectively. For the nine months ended February 28, 2014 of fiscal 2014, the revision increased Cash provided by operations and decreased Effect of exchange rate changes on cash and equivalents by $17 million. For the fiscal years ended May 31, 2014, 2013, and 2012, the revisions increased Cash provided by operations and decreased Effect of exchange rate changes on cash and equivalents by $10 million, $64 million and $108 million, respectively. These amounts have been reflected in the applicable tables below. As part of the revision to the Consolidated Statements of Cash Flows, the Company has updated its presentation to separately report Net foreign currency adjustments, which was previously included within Amortization and other.

Previously Disclosed Revisions

As previously reported, the Company has historically capitalized costs associated with internally generated patents and trademarks and amortized these assets over the legal term of the patents and trademarks. During the fourth quarter of fiscal 2014, management determined that these capitalized costs were not accurately identified with specific patent or trademark assets and, therefore, concluded that amounts previously capitalized should have been expensed as incurred. Accordingly, the Unaudited Condensed Consolidated Financial Statements have been revised to correctly expense costs associated with internally developed patents and trademarks in the period incurred and to reverse expenses for amortization of previously capitalized costs. The revisions resulted in a decrease in Net income of $3 million and $7 million for the three and nine months ended February 28, 2014, respectively. Cash provided by operations decreased $15 million while Cash used by investing activities decreased $15 million for the nine months ended February 28, 2014.

Also, in the fourth quarter of fiscal 2014, the Company revised certain prior year amounts in the Unaudited Condensed Consolidated Statements of Cash Flows to eliminate intercompany transfers of short-term investments, to correctly reflect the purchases, sales and maturities of short-term investments related to the Company's hedging program involving U.S. Dollar denominated available-for-sale securities and to correctly classify certain investment holdings as Short-term investments. For the nine months ended February 28, 2014, the revisions resulted in a net increase in Purchases of short-term investments of $89 million, a net decrease in Maturities of short-term investments of $145 million and a net increase in Sales of short-term investments of $234 million. This revision had no impact on Cash used by investing activities or Net increase (decrease) in cash and equivalents.

The Company assessed the materiality of these misstatements on prior periods’ financial statements in accordance with SAB No. 99, Materiality, codified in ASC 250, Presentation of Financial Statements, and concluded that these misstatements were not material to any prior annual or interim periods. Accordingly, the Unaudited Condensed Consolidated Financial Statements as of February 28, 2014, and for the three and nine months then ended, which are presented herein, have been revised.

The following are selected line items from the Company's Unaudited Condensed Consolidated Financial Statements illustrating the effect of these corrections and the correction of other immaterial errors:

Third quarter of fiscal 2014 (presented herein for comparative purposes):



	NIKE, Inc. Unaudited Condensed Consolidated Statements of Income
	Three Months Ended February 28, 2014							Nine Months Ended February 28, 2014
(In millions, except per share data)	As Reported		Adjustment			As Revised		As Reported		Adjustment			As Revised
Total selling and administrative expense	$	2,166	$	3		$	2,169	$	6,310	$	8		$	6,318
Income before income taxes	883		(3		)	880		2,640		(8		)	2,632
Income tax expense	198		—			198		638		(1		)	637
NET INCOME	$	685	$	(3	)	$	682	$	2,002	$	(7	)	$	1,995

Earnings per common share:
Basic	$	0.78	$	(0.01	)	$	0.77	$	2.26	$	(0.01	)	$	2.25
Diluted	$	0.76	$	(0.01	)	$	0.75	$	2.20	$	(0.01	)	$	2.19



	NIKE, Inc. Unaudited Condensed Consolidated Statements of Comprehensive Income
	Three Months Ended February 28, 2014							Nine Months Ended February 28, 2014
(In millions)	As Reported		Adjustment			As Revised		As Reported		Adjustment			As Revised
Net income	$	685	$	(3	)	$	682	$	2,002	$	(7	)	$	1,995
TOTAL COMPREHENSIVE INCOME	$	628	$	(3	)	$	625	$	1,761	$	(7	)	$	1,754



	NIKE, Inc. Unaudited Condensed Consolidated Statements of Cash Flows
	Nine Months Ended February 28, 2014
(In millions)	As Reported			Adjustment			As Revised
Cash provided by operations:
Net income	$	2,002		$	(7	)	$	1,995
Income charges (credits) not affecting cash:
Amortization and other	102			(49		)	53
Net foreign currency adjustments	—			59			59
(Increase) in inventories	(343		)	(6		)	(349		)
Increase (decrease) in accounts payable, accrued liabilities and income taxes	(54		)	5			(49		)
Cash provided by operations	1,683			2			1,685
Cash used by investing activities:
Purchases of short-term investments	(4,146		)	(89		)	(4,235		)
Maturities of short-term investments	3,030			(145		)	2,885
Sales of short-term investments	555			234			789
(Increase) in other assets, net of other liabilities	(16		)	15			(1		)
Cash used by investing activities	(1,246		)	15			(1,231		)
Effect of exchange rate changes on cash and equivalents	7			(17		)	(10		)
Net increase (decrease) in cash and equivalents	(1,473		)	—			(1,473		)
Cash and equivalents, beginning of period	3,337			—			3,337
CASH AND EQUIVALENTS, END OF PERIOD	$	1,864		$	—		$	1,864

First and second quarters of fiscal 2015 (to be presented in Forms 10-Q for the first and second quarters of fiscal 2016 for comparative purposes):



	NIKE, Inc. Unaudited Condensed Consolidated Statements of Cash Flows
	Three Months Ended August 31, 2014								Six Months Ended November 30, 2014
(In millions)	As Reported			Adjustment			As Revised		As Reported			Adjustment			As Revised
Cash provided by operations:
Net income	$	962		$	—		$	962	$	1,617		$	—		$	1,617
Income charges (credits) not affecting cash:
Amortization and other	(34		)	42			8		(54		)	69			15
Net foreign currency adjustments	—			53			53		—			243			243
Cash provided by operations	588			95			683		1,235			312			1,547
Effect of exchange rate changes on cash and equivalents	97			(95		)	2		288			(312		)	(24		)
Net increase (decrease) in cash and equivalents	83			—			83		53			—			53
Cash and equivalents, beginning of period	2,220			—			2,220		2,220			—			2,220
CASH AND EQUIVALENTS, END OF PERIOD	$	2,303		$	—		$	2,303	$	2,273		$	—		$	2,273

The following are selected line items from the Company's Consolidated Financial Statements illustrating the effect of these corrections on the amounts previously reported in the Company's fiscal 2014 Annual Report on Form 10-K:



	NIKE, Inc. Consolidated Statements of Cash Flows
	Year Ended May 31, 2014									Year Ended May 31, 2013							Year Ended May 31, 2012
(In millions)	As Reported			Adjustment			As Revised			As Reported		Adjustment			As Revised		As Reported		Adjustment			As Revised
Cash provided by operations:
Net income	$	2,693		$	—		$	2,693		$	2,472	$	—		$	2,472	$	2,211	$	—		$	2,211
Income charges (credits) not affecting cash:
Amortization and other	114			(46		)	68			66		(2		)	64		23		45			68
Net foreign currency adjustments	—			56			56			—		66			66		—		63			63
Cash provided by operations	3,003			10			3,013			2,968		64			3,032		1,824		108			1,932
Effect of exchange rate changes on cash and equivalents	1			(10		)	(9		)	100		(64		)	36		67		(108		)	(41		)
Net (decrease) increase in cash and equivalents	(1,117		)	—			(1,117		)	1,083		—			1,083		377		—			377
Cash and equivalents, beginning of year	3,337			—			3,337			2,254		—			2,254		1,877		—			1,877
CASH AND EQUIVALENTS, END OF YEAR	$	2,220		$	—		$	2,220		$	3,337	$	—		$	3,337	$	2,254	$	—		$	2,254

Recently Issued Accounting Standards

In May 2014, the Financial Accounting Standards Board ("FASB") issued an accounting standards update that replaces existing revenue recognition guidance. Among other things, the updated guidance requires companies to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance is effective for the Company beginning June 1, 2017 and early adoption is not permitted. The Company is currently evaluating the effect the guidance will have on the Consolidated Financial Statements.

Inventories

NOTE 2 — Inventories

Inventory balances of $4,246 million and $3,947 million at February 28, 2015 and May 31, 2014, respectively, were substantially all finished goods.

Accrued Liabilities

NOTE 3 — Accrued Liabilities

Accrued liabilities included the following:



	As of February 28,		As of May 31,
(In millions)	2015		2014
Compensation and benefits, excluding taxes	$	849	$	782
Collateral received from counterparties to hedging instruments	769		—
Endorsement compensation	315		328
Dividends payable	241		209
Taxes other than income taxes	237		204
Fair value of derivatives	167		85
Advertising and marketing	126		133
Import and logistics costs	111		127
Other⁽¹⁾	748		623
TOTAL ACCRUED LIABILITIES	$	3,563	$	2,491


(1)	Other consists of various accrued expenses with no individual item accounting for more than 5% of the total Accrued liabilities balance at February 28, 2015 and May 31, 2014.

Fair Value Measurements

NOTE 4 — Fair Value Measurements

The Company measures certain financial assets and liabilities at fair value on a recurring basis, including derivatives and available-for-sale securities. Fair value is the price the Company would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. The Company uses the three-level hierarchy established by the FASB that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach and cost approach).

The levels of the fair value hierarchy are described below:


•	Level 1: Quoted prices in active markets for identical assets or liabilities.


•	Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets and quoted prices for identical assets or liabilities in markets that are not active.


•	Level 3: Unobservable inputs for which there is little or no market data available, which require the reporting entity to develop its own assumptions.

The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Financial assets and liabilities are classified in their entirety based on the most conservative level of input that is significant to the fair value measurement.

Pricing vendors are utilized for certain Level 1 and Level 2 investments. These vendors either provide a quoted market price in an active market or use observable inputs without applying significant adjustments in their pricing. Observable inputs include broker quotes, interest rates and yield curves observable at commonly quoted intervals, volatilities and credit risks. The Company’s fair value processes include controls that are designed to ensure appropriate fair values are recorded. These controls include a comparison of fair values to another independent pricing vendor.

The following tables present information about the Company’s financial assets measured at fair value on a recurring basis as of February 28, 2015 and May 31, 2014, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement.



	As of February 28, 2015
(In millions)	Assets at Fair Value		Cash and Equivalents		Short-term Investments		Other Long-term Assets
Cash	$	778	$	778	$	—	$	—
Level 1:
U.S. Treasury securities	1,017		75		942		—
Level 2:
Time deposits	341		341		—		—
U.S. Agency securities	904		110		794		—
Commercial paper and bonds	785		175		610		—
Money market funds	1,536		1,536		—		—
Total Level 2:	3,566		2,162		1,404		—
Level 3:
Non-marketable preferred stock	6		—		—		6
TOTAL	$	5,367	$	3,015	$	2,346	$	6



	As of May 31, 2014
(In millions)	Assets at Fair Value		Cash and Equivalents		Short-term Investments		Other Long-term Assets
Cash	$	780	$	780	$	—	$	—
Level 1:
U.S. Treasury securities	1,137		151		986		—
Level 2:
Time deposits	227		227		—		—
U.S. Agency securities	1,027		25		1,002		—
Commercial paper and bonds	959		25		934		—
Money market funds	1,012		1,012		—		—
Total Level 2:	3,225		1,289		1,936		—
Level 3:
Non-marketable preferred stock	7		—		—		7
TOTAL	$	5,149	$	2,220	$	2,922	$	7

The Company elects to record the gross assets and liabilities of its derivative financial instruments on the Unaudited Condensed Consolidated Balance Sheets. The Company’s derivative financial instruments are subject to master netting arrangements that allow for the offset of assets and liabilities in the event of default or early termination of the contract. Any amounts of cash collateral received or posted related to these instruments associated with the Company's credit related contingent features are recorded in Cash and equivalents and Accrued liabilities, the latter of which would further offset against the Company’s derivative asset balance (refer to Note 8 — Risk Management and Derivatives). Cash collateral received or posted related to the Company's credit related contingent features is presented in the Cash provided by operations component of the Unaudited Condensed Consolidated Statement of Cash Flows. Any amounts of non-cash collateral received, such as securities, are not recorded on the Unaudited Condensed Consolidated Balance Sheets pursuant to the accounting standards for non-cash collateral received.

The following tables present information about the Company’s derivative assets and liabilities measured at fair value on a recurring basis as of February 28, 2015 and May 31, 2014, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement.



	As of February 28, 2015
	Derivative Assets						Derivative Liabilities
(In millions)	Assets at Fair Value		Other Current Assets		Other Long-term Assets		Liabilities at Fair Value		Accrued Liabilities		Other Long-term Liabilities
Level 2:
Foreign exchange forwards and options⁽¹⁾	$	1,459	$	1,005	$	454	$	195	$	167	$	28
Embedded derivatives	1		1		—		—		—		—
Interest rate swaps⁽²⁾	47		47		—		—		—		—
TOTAL	$	1,507	$	1,053	$	454	$	195	$	167	$	28

(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 $193 million as of February 28, 2015. As of that date, the Company had received $736 million of cash collateral and $77 million of securities from various counterparties related to these foreign exchange derivative instruments. No amount of collateral was posted on the Company’s derivative liability balance as of February 28, 2015.


(2)	As of February 28, 2015, the Company had received $33 million of cash collateral related to its interest rate swaps.



	As of May 31, 2014
	Derivative Assets						Derivative Liabilities
(In millions)	Assets at Fair Value		Other Current Assets		Other Long-term Assets		Liabilities at Fair Value		Accrued Liabilities		Other Long-term Liabilities
Level 2:
Foreign exchange forwards and options⁽¹⁾	$	127	$	101	$	26	$	85	$	84	$	1
Interest rate swaps⁽¹⁾	6		—		6		—		—		—
TOTAL	$	133	$	101	$	32	$	85	$	84	$	1


(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 $63 million as of May 31, 2014. No amounts of collateral were received or posted on the Company’s derivative assets and liabilities as of May 31, 2014.

Available-for-sale securities comprise investments in U.S. Treasury and Agency securities, money market funds, corporate commercial paper and bonds. These securities are valued using market prices on both active markets (Level 1) and less active markets (Level 2). The gross realized gains and losses on sales of available-for-sale securities were immaterial for the three and nine months ended February 28, 2015 and 2014. Unrealized gains and losses on available-for-sale securities included in Other comprehensive income were immaterial as of February 28, 2015 and May 31, 2014.

The Company regularly reviews its available-for-sale securities for other-than-temporary impairment. For the nine months ended February 28, 2015 the Company did not consider any of its securities to be other-than-temporarily impaired and accordingly, did not recognize any impairment losses.

As of February 28, 2015, the Company held $1,727 million of available-for-sale securities with maturity dates within one year from the purchase date and $619 million with maturity dates over one year and less than five years from the purchase date within Short-term investments. As of May 31, 2014, the Company held $2,287 million of available-for-sale securities with maturity dates within one year from the purchase date and $635 million with maturity dates over one year and less than five years from the purchase date within Short-term investments.

Included in Interest expense (income), net for each of the three months ended February 28, 2015 and 2014 was interest income related to the Company's available-for-sale securities of $1 million and $2 million, respectively, and $4 million for each of the nine months ended February 28, 2015 and 2014, respectively.

The Company’s Level 3 assets comprise investments in certain non-marketable preferred stock. These Level 3 investments are an immaterial portion of the Company's portfolio. Changes in Level 3 investment assets were immaterial during the nine months ended February 28, 2015 and the year ended May 31, 2014.

Derivative financial instruments include foreign exchange forwards and options, embedded derivatives and interest rate swaps. Refer to Note 8 — Risk Management and Derivatives for additional detail.

No transfers among the levels within the fair value hierarchy occurred during the nine months ended February 28, 2015.

As of February 28, 2015 and May 31, 2014, the Company had no assets or liabilities that were required to be measured at fair value on a non-recurring basis.

Financial Assets and Liabilities Not Recorded at Fair Value

The Company’s long-term debt is recorded at adjusted cost, net of amortized premiums and discounts and interest rate swap fair value adjustments. The fair value of long-term debt is estimated based upon quoted prices for similar instruments or quoted prices for identical instruments in inactive markets (Level 2). The fair value of the Company’s long-term debt, including the current portion, was approximately $1,198 million at February 28, 2015 and $1,154 million at May 31, 2014.

The carrying amounts reflected on the Unaudited Condensed Consolidated Balance Sheets for Notes payable approximate fair value.

At February 28, 2015 the Company had $250 million of outstanding receivables related to its investments in reverse repurchase agreements recorded within Prepaid expenses and other current assets on the Unaudited Condensed Consolidated Balance Sheet. The carrying amount of these agreements approximates their fair value based upon observable inputs other than quoted prices (Level 2). The reverse repurchase agreements are fully collateralized.

Income Taxes

NOTE 5 — Income Taxes

The effective tax rate was 23.6% and 24.2% for the nine month periods ended February 28, 2015 and 2014, respectively. The decrease in the Company’s effective tax rate was primarily due to the resolution of audits in several jurisdictions, an increase in the proportion of earnings from operations outside of the United States, which are generally subject to a lower tax rate, and the retroactive reinstatement of the U.S. research and development tax credit. These factors were partially offset by the impact of tax expense on intercompany transactions.

As of February 28, 2015, total gross unrecognized tax benefits, excluding related interest and penalties, were $444 million, $252 million of which would affect the Company’s effective tax rate if recognized in future periods. As of May 31, 2014, total gross unrecognized tax benefits, excluding related interest and penalties, were $506 million. The liability for payment of interest and penalties did not change during the nine months ended February 28, 2015. As of February 28, 2015 and May 31, 2014, accrued interest and penalties related to uncertain tax positions were $167 million (excluding federal benefit).

The Company is subject to taxation primarily in the United States, China, the Netherlands and Brazil, as well as various other state and foreign jurisdictions. The Company is currently under audit by the U.S. Internal Revenue Service (IRS) for the 2012 through 2014 tax years. The Company has closed all U.S. federal income tax matters through fiscal 2011, with the exception of the validation of foreign tax credits utilized. During the current period, the IRS issued a statutory notice of deficiency for fiscal 2011 proposing an increase in tax of $31 million, subject to interest, related to the foreign tax credit matter. This notice also reported a decrease in foreign tax credit carryovers for fiscal 2010 and 2011. The Company does not expect the outcome of this matter to have a material impact on the financial statements. The Company intends to contest this deficiency notice by filing a petition with the U.S. Tax Court. No payments on the assessment would be required until the dispute is definitively resolved. Based on the information currently available, the Company does not anticipate a significant increase or decrease to its unrecognized tax benefits for this matter within the next 12 months.

The Company’s major foreign jurisdictions, China, the Netherlands and Brazil, have concluded substantially all income tax matters through calendar 2005, fiscal 2009 and calendar 2008, respectively. Although the timing of resolution of audits is not certain, the Company evaluates all domestic and foreign audit issues in the aggregate, along with the expiration of applicable statutes of limitations, and estimates that it is reasonably possible the total gross unrecognized tax benefits could decrease by up to $38 million within the next 12 months.

Stock-Based Compensation

NOTE 6 — Stock-Based Compensation

In 1990, the Board of Directors adopted, and the shareholders approved, the NIKE, Inc. 1990 Stock Incentive Plan (the “1990 Plan”). The 1990 Plan provides for the issuance of up to 326 million previously unissued shares of Class B Common Stock in connection with stock options and other awards granted under the 1990 Plan. The 1990 Plan authorizes the grant of non-statutory stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units and performance-based awards. The exercise price for stock options and stock appreciation rights may not be less than the fair market value of the underlying shares on the date of grant. A committee of the Board of Directors administers the 1990 Plan. The committee has the authority to determine the employees to whom awards will be made, the amount of the awards and the other terms and conditions of the awards. Substantially all stock option grants outstanding under the 1990 Plan were granted in the first quarter of each fiscal year, vest ratably over four years and expire 10 years from the date of grant.

In addition to the 1990 Plan, the Company gives employees the right to purchase shares at a discount to the market price under employee stock purchase plans (“ESPPs”). Employees are eligible to participate through payroll deductions of up to 10% of their compensation. At the end of each 6-month offering period, shares are purchased by the participants at 85% of the lower of the fair market value at the beginning or the end of the offering period.

The Company accounts for stock-based compensation by estimating the fair value of options granted under the 1990 Plan and employees’ purchase rights under the ESPPs using the Black-Scholes option pricing model. The Company recognizes this fair value as Operating overhead expense over the vesting period using the straight-line method.

The following table summarizes the Company’s total stock-based compensation expense recognized in Operating overhead expense:



	Three Months Ended February 28,				Nine Months Ended February 28,
(In millions)	2015		2014		2015		2014
Stock options⁽¹⁾	$	35	$	32	$	100	$	93
ESPPs	5		5		17		16
Restricted stock	8		6		23		22
TOTAL STOCK-BASED COMPENSATION EXPENSE	$	48	$	43	$	140	$	131

(1)

Expense for stock options includes the expense associated with stock appreciation rights. Accelerated stock option expense is recorded for employees eligible for accelerated stock option vesting upon retirement. Accelerated stock option expense for the three month periods ended February 28, 2015 and 2014 was $5 million and $3 million, respectively, and for the nine month periods ended February 28, 2015 and 2014 was $14 million and $11 million, respectively.

As of February 28, 2015, the Company had $216 million of unrecognized compensation costs from stock options, net of estimated forfeitures, to be recognized in Operating overhead expense over a weighted average remaining period of 2.2 years.

The weighted average fair value per share of the options granted during the nine month periods ended February 28, 2015 and 2014, as computed using the Black-Scholes pricing model, was $16.94 and $14.88, respectively. The weighted average assumptions used to estimate these fair values are as follows:



	Nine Months Ended February 28,
	2015		2014
Dividend yield	1.2	%	1.3	%
Expected volatility	23.6	%	27.9	%
Weighted average expected life (in years)	5.8		5.3
Risk-free interest rate	1.7	%	1.3	%

The Company estimates the expected volatility based on the implied volatility in market traded options on the Company’s common stock with a term greater than one year, along with other factors. The weighted average expected life of options is based on an analysis of historical and expected future exercise patterns. The interest rate is based on the U.S. Treasury (constant maturity) risk-free rate in effect at the date of grant for periods corresponding with the expected term of the options.

Earnings Per Share

NOTE 7 — Earnings Per Share

The following is a reconciliation from basic earnings per common share to diluted earnings per common share. The computation of diluted earnings per common share omitted options to purchase an additional 0.1 million and 0.1 million shares of common stock outstanding for the three month periods ended February 28, 2015 and 2014, respectively, and options to purchase an additional 0.1 million and 0.0 million shares of common stock outstanding for the nine month periods ended February 28, 2015 and 2014, respectively, because the options were anti-dilutive.



	Three Months Ended February 28,				Nine Months Ended February 28,
(In millions, except per share data)	2015		2014		2015		2014
Determination of shares:
Weighted average common shares outstanding	861.4		882.3		863.2		886.6
Assumed conversion of dilutive stock options and awards	22.4		22.5		22.3		22.5
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING	883.8		904.8		885.5		909.1

Earnings per common share:
Basic	$	0.92	$	0.77	$	2.79	$	2.25
Diluted	$	0.89	$	0.75	$	2.72	$	2.19

Risk Management and Derivatives

NOTE 8 — Risk Management and Derivatives

The Company is exposed to global market risks, including the effect of changes in foreign currency exchange rates and interest rates, and uses derivatives to manage financial exposures that occur in the normal course of business. The Company does not hold or issue derivatives for trading or speculative purposes.

The Company may elect to designate certain derivatives as hedging instruments under the accounting standards for derivatives and hedging. The Company formally documents all relationships between designated hedging instruments and hedged items as well as its risk management objectives and strategies for undertaking hedge transactions. This process includes linking all derivatives designated as hedges to either recognized assets or liabilities or forecasted transactions.

The majority of derivatives outstanding as of February 28, 2015 are designated as cash flow hedges primarily for Euro/U.S. Dollar, British Pound/Euro and Japanese Yen/U.S. Dollar currency pairs. All derivatives are recognized on the Unaudited Condensed Consolidated Balance Sheet at fair value and classified based on the instrument’s maturity date.

The following table presents the fair values of derivative instruments included within the Unaudited Condensed Consolidated Balance Sheets as of February 28, 2015 and May 31, 2014:



	Derivative Assets					Derivative Liabilities
(In millions)	Balance Sheet Location	February 28, 2015		May 31, 2014		Balance Sheet Location	February 28, 2015		May 31, 2014
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	$	762	$	76	Accrued liabilities	$	141	$	57
Interest rate swaps	Prepaid expenses and other current assets	47		—		Accrued liabilities	—		—
Foreign exchange forwards and options	Deferred income taxes and other assets	454		26		Deferred income taxes and other liabilities	28		1
Interest rate swaps	Deferred income taxes and other assets	—		6		Deferred income taxes and other liabilities	—		—
Total derivatives formally designated as hedging instruments		1,263		108			169		58
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	243		25		Accrued liabilities	26		27
Embedded derivatives	Prepaid expenses and other current assets	1		—		Accrued liabilities	—		—
Total derivatives not designated as hedging instruments		244		25			26		27
TOTAL DERIVATIVES		$	1,507	$	133		$	195	$	85

The following tables present the amounts affecting the Unaudited Condensed Consolidated Statements of Income for the three and nine months ended February 28, 2015 and 2014:



(In millions)	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives⁽¹⁾						Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income⁽¹⁾
(In millions)	Three Months Ended February 28, 2015			Nine Months Ended February 28, 2015			Location of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income	Three Months Ended February 28, 2015			Nine Months Ended February 28, 2015
Derivatives designated as cash flow hedges:
Foreign exchange forwards and options	$	(146	)	$	(188	)	Revenues	$	(17	)	$	(53	)
Foreign exchange forwards and options	547			946			Cost of sales	74			87
Foreign exchange forwards and options	—			—			Total selling and administrative expense	—			—
Foreign exchange forwards and options	277			417			Other (income) expense, net	42			60
Interest rate swaps	44			44			Interest expense (income), net	—			—
Total designated cash flow hedges	$	722		$	1,219			$	99		$	94


(1)	For the three and nine months ended February 28, 2015, the amounts recorded in Other (income) expense, net as a result of hedge ineffectiveness and the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial.



(In millions)	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives⁽¹⁾						Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income⁽¹⁾
(In millions)	Three Months Ended February 28, 2014			Nine Months Ended February 28, 2014			Location of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income	Three Months Ended February 28, 2014			Nine Months Ended February 28, 2014
Derivatives designated as cash flow hedges:
Foreign exchange forwards and options	$	(20	)	$	(39	)	Revenues	$	(1	)	$	20
Foreign exchange forwards and options	(12		)	(100		)	Cost of sales	(5		)	18
Foreign exchange forwards and options	1			4			Total selling and administrative expense	—			—
Foreign exchange forwards and options	(5		)	(28		)	Other (income) expense, net	(5		)	6
Total designated cash flow hedges	$	(36	)	$	(163	)		$	(11	)	$	44


(1)	For the three and nine months ended February 28, 2014, the amounts recorded in Other (income) expense, net as a result of hedge ineffectiveness and the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial.



	Amount of Gain (Loss) Recognized in Income on Derivatives										Location of Gain (Loss) Recognized in Income on Derivatives
	Three Months Ended February 28,					Nine Months Ended February 28,
(In millions)	2015		2014			2015		2014
Derivatives designated as fair value hedges:
Interest rate swaps⁽¹⁾	$	1	$	1		$	3	$	3		Interest expense (income), net
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	$	278	$	(11	)	$	556	$	(50	)	Other (income) expense, net
Embedded derivatives	$	2	$	1		$	3	$	—		Other (income) expense, net


(1)	All interest rate swaps designated as fair value hedges meet the shortcut method requirements under the accounting standards for derivatives and hedging. Accordingly, changes in the fair values of the interest rate swaps are considered to exactly offset changes in the fair value of the underlying long-term debt. Refer to “Fair Value Hedges” in this note for additional detail.

Refer to Note 3 — Accrued Liabilities for derivative instruments recorded in Accrued liabilities, Note 4 — Fair Value Measurements for a description of how the above financial instruments are valued and Note 9 — Accumulated Other Comprehensive Income for additional information on changes in Other comprehensive income for the three and nine months ended February 28, 2015 and 2014.

Cash Flow Hedges

The purpose of the Company's foreign exchange risk management program is to lessen both the positive and negative effects of currency fluctuations on the Company's consolidated results of operations, financial position and cash flows. Foreign currency exposures that the Company may elect to hedge in this manner include product cost exposures, non-functional currency denominated external and intercompany revenues, selling and administrative expenses, investments in U.S. Dollar-denominated available-for-sale debt securities and certain other intercompany transactions.

Product cost exposures are primarily generated through non-functional currency denominated product purchases and the foreign currency adjustment program described below. NIKE entities primarily purchase products in two ways: (1) Certain NIKE entities purchase product from the NIKE Trading Company (“NTC”), a wholly owned sourcing hub that buys NIKE branded products from third party factories, predominantly in U.S. Dollars. The NTC, whose functional currency is the U.S. Dollar, then sells the products to NIKE entities in their respective functional currencies. When the NTC sells to a NIKE entity with a different functional currency, the result is a foreign currency exposure for the NTC. (2) Other NIKE entities purchase product directly from third party factories in U.S. Dollars. These purchases generate a foreign currency exposure for those NIKE entities with a functional currency other than the U.S. Dollar.

The Company operates a foreign currency adjustment program with certain factories. The program is designed to more effectively manage foreign currency risk by assuming certain of the factories’ foreign currency exposures, some of which are natural offsets to the Company's existing foreign currency exposures. Under this program, the Company’s payments to these factories are adjusted for rate fluctuations in the basket of currencies (“factory currency exposure index”) in which the labor, materials and overhead costs incurred by the factories in the production of NIKE branded products (“factory input costs”) are denominated. For the portion of the indices denominated in the local or functional currency of the factory, the Company may elect to place formally designated cash flow hedges. For all currencies within the indices, excluding the U.S. Dollar and the local or functional currency of the factory, an embedded derivative contract is created upon the factory’s acceptance of NIKE’s purchase order. Embedded derivative contracts are separated from the related purchase order, and their accounting treatment is described further below.

The Company’s policy permits the utilization of derivatives to reduce its foreign currency exposures where internal netting or other strategies cannot be effectively employed. Typically, the Company may enter into hedge contracts starting up to 12 to 24 months in advance of the forecasted transaction and may place incremental hedges up to 100% of the exposure by the time the forecasted transaction occurs. The total notional amount of outstanding foreign currency derivatives designated as cash flow hedges was $10.7 billion as of February 28, 2015.

During the three months ended February 28, 2015, the Company entered into a series of forward-starting interest rate swap agreements with a total notional amount of $750 million. These instruments were designated as cash flow hedges of the variability in the expected cash outflows of interest payments on future debt due to changes in benchmark interest rates.

All changes in fair value of derivatives designated as cash flow hedges, excluding any ineffective portion, are recorded in Other comprehensive income until Net income is affected by the variability of cash flows of the hedged transaction. In most cases, amounts recorded in Other comprehensive income will be released to Net income in periods following the maturity of the related derivative, rather than at maturity. Effective hedge results are classified within the Unaudited Condensed Consolidated Statements of Income in the same manner as the underlying exposure, with the results of hedges of non-functional currency denominated revenues and product cost exposures, excluding embedded derivatives as described below, recorded in Revenues or Cost of sales, when the underlying hedged transaction affects consolidated Net income. Results of hedges of selling and administrative expense are recorded together with those costs when the related expense is recorded. Amounts recorded in Other comprehensive income related to forward-starting interest rate swaps will be released through Interest expense (income), net over the term of the issued debt. Results of hedges of anticipated purchases and sales of U.S. Dollar-denominated available-for-sale securities are recorded in Other (income) expense, net when the securities are sold. Results of hedges of certain anticipated intercompany transactions are recorded in Other (income) expense, net when the transaction occurs. The Company classifies the cash flows at settlement from these designated cash flow hedge derivatives in the same category as the cash flows from the related hedged items, primarily within the Cash provided by operations component of the Unaudited Condensed Consolidated Statements of Cash Flows.

Premiums paid on options are initially recorded as deferred charges. The Company assesses the effectiveness of options based on the total cash flows method and records total changes in the options’ fair value to Other comprehensive income to the degree they are effective.

The Company formally assesses, both at a hedge’s inception and on an ongoing basis, whether the derivatives that are used in the hedging transaction have been highly effective in offsetting changes in the cash flows of hedged items and whether those derivatives may be expected to remain highly effective in future periods. Effectiveness for cash flow hedges is assessed based on changes in forward rates. Ineffectiveness was not material for the three and nine months ended February 28, 2015 and 2014.

The Company discontinues hedge accounting prospectively when: (1) it determines that the derivative is no longer highly effective in offsetting changes in the cash flows of a hedged item (including hedged items such as firm commitments or forecasted transactions); (2) the derivative expires or is sold, terminated or exercised; (3) it is no longer probable that the forecasted transaction will occur; or (4) management determines that designating the derivative as a hedging instrument is no longer appropriate.

When the Company discontinues hedge accounting because it is no longer probable that the forecasted transaction will occur in the originally expected period, but is expected to occur within an additional two-month period of time thereafter, the gain or loss on the derivative remains in Accumulated other comprehensive income and is reclassified to Net income when the forecasted transaction affects consolidated Net income. However, if it is probable that a forecasted transaction will not occur by the end of the originally specified time period or within an additional two-month period of time thereafter, the gains and losses that were accumulated in Other comprehensive income will be recognized immediately in Other (income) expense, net. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Company will carry the derivative at its fair value on the Unaudited Condensed Consolidated Balance Sheets, recognizing future changes in the fair value in Other (income) expense, net. For the three and nine months ended February 28, 2015 and 2014, the amounts recorded in Other (income) expense, net as a result of the discontinuance of cash flow hedging because the forecasted transaction was no longer probable of occurring were immaterial.

As of February 28, 2015, $577 million of deferred net gains (net of tax) on both outstanding and matured derivatives accumulated in Other comprehensive income were expected to be reclassified to Net income during the next 12 months concurrent with the underlying hedged transactions also being recorded in Net income. Actual amounts ultimately reclassified to Net income are dependent on the exchange rates in effect when derivative contracts that are currently outstanding mature. As of February 28, 2015, the maximum term over which the Company is hedging exposures to the variability of cash flows for its forecasted transactions was 27 months.

Fair Value Hedges

The Company is also exposed to the risk of changes in the fair value of certain fixed-rate debt attributable to changes in interest rates. Derivatives currently used by the Company to hedge this risk are receive-fixed, pay-variable interest rate swaps. All interest rate swaps designated as fair value hedges of the related long-term debt meet the shortcut method requirements under the accounting standards for derivatives and hedging. Accordingly, changes in the fair values of the interest rate swaps are considered to exactly offset changes in the fair value of the underlying long-term debt. The cash flows associated with the Company’s fair value hedges are periodic interest payments while the swaps are outstanding, which are reflected within the Cash provided by operations component of the Unaudited Condensed Consolidated Statements of Cash Flows. The Company recorded no ineffectiveness from its interest rate swaps designated as fair value hedges for the three and nine months ended February 28, 2015 or 2014. As of February 28, 2015, interest rate swaps designated as fair value hedges had a total notional amount of $100 million.

Net Investment Hedges

The Company has, in the past, hedged and may, in the future, hedge the risk of variability in foreign-currency-denominated net investments in wholly owned international operations. All changes in fair value of the derivatives designated as net investment hedges, except ineffective portions, are reported in the cumulative translation adjustment component of Other comprehensive income along with the foreign currency translation adjustments on those investments. The Company classifies the cash flows at settlement of its net investment hedges within the Cash used by investing activities component of the Unaudited Condensed Consolidated Statements of Cash Flows. The Company assesses hedge effectiveness based on changes in forward rates. The Company recorded no ineffectiveness from its net investment hedges for the three and nine months ended February 28, 2015 or 2014. The Company had no outstanding net investment hedges as of February 28, 2015.

Undesignated Derivative Instruments

The Company may elect to enter into foreign exchange forwards to mitigate the change in fair value of specific assets and liabilities on the balance sheet and/or the embedded derivative contracts explained above. These forwards are not designated as hedging instruments under the accounting standards for derivatives and hedging. Accordingly, these undesignated instruments are recorded at fair value as a derivative asset or liability on the Unaudited Condensed Consolidated Balance Sheets with their corresponding change in fair value recognized in Other (income) expense, net, together with the re-measurement gain or loss from the hedged balance sheet position or embedded derivative contract. The Company classifies the cash flows at settlement from undesignated instruments in the same category as the cash flows from the related hedged items, generally within the Cash provided by operations component of the Unaudited Condensed Consolidated Statements of Cash Flows. The total notional amount of outstanding undesignated derivative instruments was $5.0 billion as of February 28, 2015.

Embedded Derivatives

As part of the foreign currency adjustment program described above, an embedded derivative contract is created upon the factory’s acceptance of NIKE’s purchase order for currencies within the factory currency exposure indices that are neither the U.S. Dollar nor the local or functional currency of the factory. Embedded derivative contracts are treated as foreign currency forward contracts that are bifurcated from the related purchase order and recorded at fair value as a derivative asset or liability on the Unaudited Condensed Consolidated Balance Sheets with their corresponding change in fair value recognized in Other (income) expense, net from the date a purchase order is accepted by a factory through the date the purchase price is no longer subject to foreign currency fluctuations. At February 28, 2015, the total notional amount of embedded derivatives outstanding was approximately $151 million.

Credit Risk

The Company is exposed to credit-related losses in the event of nonperformance by counterparties to hedging instruments. The counterparties to all derivative transactions are major financial institutions with investment grade credit ratings. However, this does not eliminate the Company’s exposure to credit risk with these institutions. This credit risk is limited to the unrealized gains in such contracts should any of these counterparties fail to perform as contracted. To manage this risk, the Company has established strict counterparty credit guidelines that are continually monitored.

The Company’s derivative contracts contain credit risk related contingent features designed to protect against significant deterioration in counterparties’ creditworthiness and their ultimate ability to settle outstanding derivative contracts in the normal course of business. The Company’s bilateral credit related contingent features generally require the owing entity, either the Company or the derivative counterparty, to post collateral for the portion of the fair value in excess of $50 million should the fair value of outstanding derivatives per counterparty be greater than $50 million. Additionally, a certain level of decline in credit rating of either the Company or the counterparty could also trigger collateral requirements. As of February 28, 2015, the Company was in compliance with all credit risk related contingent features and had derivative instruments with credit risk related contingent features in a net liability position of $2 million. Accordingly, the Company was not required to post any collateral as a result of these contingent features. Further, as of February 28, 2015, the Company had received $769 million of cash collateral and $77 million of securities from various counterparties to its derivative contracts (refer to Note 4 — Fair Value Measurements). Given the considerations described above, the Company considers the impact of the risk of counterparty default to be immaterial.

Accumulated Other Comprehensive Income

NOTE 9 — Accumulated Other Comprehensive Income

The changes in Accumulated other comprehensive income, net of tax, for the three and nine months ended February 28, 2015 were as follows:



(In millions)	Foreign Currency Translation Adjustment⁽¹⁾			Cash Flow Hedges			Net Investment Hedges⁽¹⁾		Other			Total
Balance at November 30, 2014	$	(23	)	$	500		$	95	$	(47	)	$	525
Other comprehensive gains (losses) before reclassifications⁽²⁾	15			661			—		15			691
Reclassifications to net income of previously deferred (gains) losses⁽³⁾	—			(92		)	—		(13		)	(105		)
Other comprehensive income (loss)	15			569			—		2			586
Balance at February 28, 2015	$	(8	)	$	1,069		$	95	$	(45	)	$	1,111


(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 $(3) million, $(61) million, $0 million, $(5) million and $(69) million, respectively.


(3)	Net of tax (benefit) expense of $0 million, $7 million, $0 million, $4 million and $11 million, respectively.



(In millions)	Foreign Currency Translation Adjustment⁽¹⁾			Cash Flow Hedges			Net Investment Hedges⁽¹⁾		Other			Total
Balance at May 31, 2014	$	9		$	32		$	95	$	(51	)	$	85
Other comprehensive gains (losses) before reclassifications⁽²⁾	(17		)	1,131			—		29			1,143
Reclassifications to net income of previously deferred (gains) losses⁽³⁾	—			(94		)	—		(23		)	(117		)
Other comprehensive income (loss)	(17		)	1,037			—		6			1,026
Balance at February 28, 2015	$	(8	)	$	1,069		$	95	$	(45	)	$	1,111


(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 $(3) million, $(88) million, $0 million, $(8) million and $(99) million, respectively.


(3)	Net of tax (benefit) expense of $0 million, $0 million, $0 million, $7 million and $7 million, respectively.

The changes in Accumulated other comprehensive income, net of tax, for the three and nine months ended February 28, 2014 were as follows:



(In millions)	Foreign Currency Translation Adjustment⁽¹⁾			Cash Flow Hedges			Net Investment Hedges⁽¹⁾		Other			Total
Balance at November 30, 2013	$	24		$	28		$	95	$	(57	)	$	90
Other comprehensive gains (losses) before reclassifications⁽²⁾	(34		)	(31		)	—		(3		)	(68		)
Reclassifications to net income of previously deferred (gains) losses⁽³⁾	—			10			—		1			11
Other comprehensive income (loss)	(34		)	(21		)	—		(2		)	(57		)
Balance at February 28, 2014	$	(10	)	$	7		$	95	$	(59	)	$	33


(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, $5 million, $0 million, $0 million and $5 million, respectively.


(3)	Net of tax (benefit) expense of $0 million, $(1) million, $0 million, $0 million and $(1) million, respectively.



(In millions)	Foreign Currency Translation Adjustment⁽¹⁾			Cash Flow Hedges			Net Investment Hedges⁽¹⁾		Other			Total
Balance at May 31, 2013	$	41		$	193		$	95	$	(55	)	$	274
Other comprehensive gains (losses) before reclassifications⁽²⁾	(51		)	(151		)	—		(7		)	(209		)
Reclassifications to net income of previously deferred (gains) losses⁽³⁾	—			(35		)	—		3			(32		)
Other comprehensive income (loss)	(51		)	(186		)	—		(4		)	(241		)
Balance at February 28, 2014	$	(10	)	$	7		$	95	$	(59	)	$	33


(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, $12 million, $0 million, $0 million and $12 million, respectively.


(3)	Net of tax (benefit) expense of $0 million, $9 million, $0 million, $0 million and $9 million, respectively.

The following table summarizes the reclassifications from Accumulated other comprehensive income to the Unaudited Condensed Consolidated Statements of Income:



	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
	Three Months Ended February 28,						Nine Months Ended February 28,						Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
(In millions)	2015			2014			2015			2014
Gains (losses) on cash flow hedges:
Foreign exchange forwards and options	$	(17	)	$	(1	)	$	(53	)	$	20		Revenues
Foreign exchange forwards and options	74			(5		)	87			18			Cost of sales
Foreign exchange forwards and options	42			(5		)	60			6			Other (income) expense, net
Total before tax	99			(11		)	94			44
Tax (expense) benefit	(7		)	1			—			(9		)
Gain (loss) net of tax	92			(10		)	94			35
Gains (losses) on other	17			(1		)	30			(3		)	Other (income) expense, net
Total before tax	17			(1		)	30			(3		)
Tax (expense)	(4		)	—			(7		)	—
Gain (loss) net of tax	13			(1		)	23			(3		)
Total net gain (loss) reclassified for the period	$	105		$	(11	)	$	117		$	32

Operating Segments

NOTE 10 — Operating Segments

The Company’s operating segments are evidence of the structure of the Company's internal organization. The NIKE Brand segments are defined by geographic regions for operations participating in NIKE Brand and Hurley sales activity.

Each NIKE Brand geographic segment operates predominantly in one industry: the design, development, marketing and selling of athletic footwear, apparel and equipment. The Company’s reportable operating segments for the NIKE Brand are: North America, Western Europe, Central & Eastern Europe, Greater China, Japan and Emerging Markets. The Company’s NIKE Brand Direct to Consumer operations are managed within each geographic operating segment. Converse is also a reportable segment for NIKE, Inc., and operates in one industry: the design, marketing, licensing and selling of casual sneakers, apparel and accessories.

Global Brand Divisions is included within the NIKE Brand for presentation purposes to align with the way management views the Company. Global Brand Divisions primarily represent NIKE Brand licensing businesses that are not part of a geographic operating segment, demand creation and operating overhead expenses that are centrally managed for the NIKE Brand and costs associated with product development and supply chain operations.

Corporate consists largely of unallocated general and administrative expenses, including expenses associated with centrally managed departments; depreciation and amortization related to the Company’s headquarters; and unallocated insurance, benefit and compensation programs, including stock-based compensation; certain foreign currency gains and losses, including certain hedge gains and losses; certain corporate eliminations and other items.

The primary financial measure used by the Company to evaluate performance of individual operating segments is earnings before interest and taxes (commonly referred to as “EBIT”), which represents Net income before Interest expense (income), net and Income tax expense in the Unaudited Condensed Consolidated Statements of Income. Reconciling items for EBIT represent corporate expense items that are not allocated to the operating segments for management reporting.

As part of the Company's centrally managed foreign exchange risk management program, standard foreign currency rates are assigned twice per year to each NIKE Brand entity in the Company's geographic operating segments and Converse. These rates are set approximately nine months in advance of the future selling season based on average market spot rates in the calendar month preceding the date they are established. Inventories and Cost of sales for geographic operating segments and Converse reflect use of these standard rates to record non-functional currency product purchases in the entity’s functional currency. Differences between assigned standard foreign currency rates and actual market rates are included in Corporate, together with foreign currency hedge gains and losses generated from the Company's centrally managed foreign exchange risk management program and other conversion gains and losses.

Accounts receivable, net, Inventories and Property, plant and equipment, net for operating segments are regularly reviewed by management and are therefore provided below.

Certain prior year amounts have been reclassified to conform to fiscal 2015 presentation.



	Three Months Ended February 28,						Nine Months Ended February 28,
(In millions)	2015			2014			2015			2014
REVENUES
North America	$	3,254		$	3,069		$	10,008		$	9,005
Western Europe	1,416			1,292			4,442			3,667
Central & Eastern Europe	319			356			1,057			1,017
Greater China	801			697			2,238			1,900
Japan	166			177			525			545
Emerging Markets	955			937			2,964			2,869
Global Brand Divisions	28			26			85			89
Total NIKE Brand	6,939			6,554			21,319			19,092
Converse	538			420			1,547			1,274
Corporate	(17		)	(2		)	(44		)	8
TOTAL NIKE CONSOLIDATED REVENUES	$	7,460		$	6,972		$	22,822		$	20,374
EARNINGS BEFORE INTEREST AND TAXES
North America	$	830		$	729		$	2,585		$	2,189
Western Europe	335			275			1,000			663
Central & Eastern Europe	51			79			176			208
Greater China	251			234			727			601
Japan	22			21			62			92
Emerging Markets	234			228			626			681
Global Brand Divisions	(552		)	(528		)	(1,637		)	(1,444		)
Total NIKE Brand	1,171			1,038			3,539			2,990
Converse	163			133			437			402
Corporate	(282		)	(282		)	(799		)	(735		)
Total NIKE Consolidated Earnings Before Interest and Taxes	1,052			889			3,177			2,657
Interest expense (income), net	6			9			24			25
TOTAL NIKE CONSOLIDATED EARNINGS BEFORE TAXES	$	1,046		$	880		$	3,153		$	2,632



	As of February 28,		As of May 31,
(In millions)	2015		2014
ACCOUNTS RECEIVABLE, NET
North America	$	1,546	$	1,505
Western Europe	391		341
Central & Eastern Europe	220		280
Greater China	98		68
Japan	95		162
Emerging Markets	551		819
Global Brand Divisions	90		71
Total NIKE Brand	2,991		3,246
Converse	290		171
Corporate	13		17
TOTAL ACCOUNTS RECEIVABLE, NET	$	3,294	$	3,434
INVENTORIES
North America	$	2,146	$	1,758
Western Europe	681		711
Central & Eastern Europe	149		271
Greater China	246		221
Japan	123		94
Emerging Markets	571		633
Global Brand Divisions	26		18
Total NIKE Brand	3,942		3,706
Converse	219		261
Corporate	85		(20		)
TOTAL INVENTORIES	$	4,246	$	3,947
PROPERTY, PLANT AND EQUIPMENT, NET
North America	$	598	$	545
Western Europe	411		384
Central & Eastern Europe	42		51
Greater China	240		232
Japan	213		258
Emerging Markets	102		115
Global Brand Divisions	500		537
Total NIKE Brand	2,106		2,122
Converse	93		70
Corporate	663		642
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET	$	2,862	$	2,834

Commitments and Contingencies

NOTE 11 — Commitments and Contingencies

At February 28, 2015, the Company had letters of credit outstanding totaling $158 million. These letters of credit were issued primarily for the purchase of inventory and guarantees of the Company’s performance under certain self-insurance and other programs.

During the year ended May 31, 2013, the Company divested of Cole Haan. Preexisting guarantees of certain Cole Haan lease payments remained in place after the sale; the maximum exposure under the guarantees was $26 million at February 28, 2015. The fair value of the guarantees is not material.

There have been no other significant subsequent developments relating to the commitments and contingencies reported on the Company's latest Annual Report on Form 10-K.

Summary of Significant Accounting Policies (Policies)

Recently Issued Accounting Standards

In May 2014, the Financial Accounting Standards Board ("FASB") issued an accounting standards update that replaces existing revenue recognition guidance. Among other things, the updated guidance requires companies to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance is effective for the Company beginning June 1, 2017 and early adoption is not permitted. The Company is currently evaluating the effect the guidance will have on the Consolidated Financial Statements.

Summary of Significant Accounting Policies (Tables)

Schedule of Error Corrections and Prior Period Adjustments

The following are selected line items from the Company's Unaudited Condensed Consolidated Financial Statements illustrating the effect of these corrections and the correction of other immaterial errors:

Third quarter of fiscal 2014 (presented herein for comparative purposes):



	NIKE, Inc. Unaudited Condensed Consolidated Statements of Income
	Three Months Ended February 28, 2014							Nine Months Ended February 28, 2014
(In millions, except per share data)	As Reported		Adjustment			As Revised		As Reported		Adjustment			As Revised
Total selling and administrative expense	$	2,166	$	3		$	2,169	$	6,310	$	8		$	6,318
Income before income taxes	883		(3		)	880		2,640		(8		)	2,632
Income tax expense	198		—			198		638		(1		)	637
NET INCOME	$	685	$	(3	)	$	682	$	2,002	$	(7	)	$	1,995

Earnings per common share:
Basic	$	0.78	$	(0.01	)	$	0.77	$	2.26	$	(0.01	)	$	2.25
Diluted	$	0.76	$	(0.01	)	$	0.75	$	2.20	$	(0.01	)	$	2.19



	NIKE, Inc. Unaudited Condensed Consolidated Statements of Comprehensive Income
	Three Months Ended February 28, 2014							Nine Months Ended February 28, 2014
(In millions)	As Reported		Adjustment			As Revised		As Reported		Adjustment			As Revised
Net income	$	685	$	(3	)	$	682	$	2,002	$	(7	)	$	1,995
TOTAL COMPREHENSIVE INCOME	$	628	$	(3	)	$	625	$	1,761	$	(7	)	$	1,754



	NIKE, Inc. Unaudited Condensed Consolidated Statements of Cash Flows
	Nine Months Ended February 28, 2014
(In millions)	As Reported			Adjustment			As Revised
Cash provided by operations:
Net income	$	2,002		$	(7	)	$	1,995
Income charges (credits) not affecting cash:
Amortization and other	102			(49		)	53
Net foreign currency adjustments	—			59			59
(Increase) in inventories	(343		)	(6		)	(349		)
Increase (decrease) in accounts payable, accrued liabilities and income taxes	(54		)	5			(49		)
Cash provided by operations	1,683			2			1,685
Cash used by investing activities:
Purchases of short-term investments	(4,146		)	(89		)	(4,235		)
Maturities of short-term investments	3,030			(145		)	2,885
Sales of short-term investments	555			234			789
(Increase) in other assets, net of other liabilities	(16		)	15			(1		)
Cash used by investing activities	(1,246		)	15			(1,231		)
Effect of exchange rate changes on cash and equivalents	7			(17		)	(10		)
Net increase (decrease) in cash and equivalents	(1,473		)	—			(1,473		)
Cash and equivalents, beginning of period	3,337			—			3,337
CASH AND EQUIVALENTS, END OF PERIOD	$	1,864		$	—		$	1,864

First and second quarters of fiscal 2015 (to be presented in Forms 10-Q for the first and second quarters of fiscal 2016 for comparative purposes):



	NIKE, Inc. Unaudited Condensed Consolidated Statements of Cash Flows
	Three Months Ended August 31, 2014								Six Months Ended November 30, 2014
(In millions)	As Reported			Adjustment			As Revised		As Reported			Adjustment			As Revised
Cash provided by operations:
Net income	$	962		$	—		$	962	$	1,617		$	—		$	1,617
Income charges (credits) not affecting cash:
Amortization and other	(34		)	42			8		(54		)	69			15
Net foreign currency adjustments	—			53			53		—			243			243
Cash provided by operations	588			95			683		1,235			312			1,547
Effect of exchange rate changes on cash and equivalents	97			(95		)	2		288			(312		)	(24		)
Net increase (decrease) in cash and equivalents	83			—			83		53			—			53
Cash and equivalents, beginning of period	2,220			—			2,220		2,220			—			2,220
CASH AND EQUIVALENTS, END OF PERIOD	$	2,303		$	—		$	2,303	$	2,273		$	—		$	2,273

The following are selected line items from the Company's Consolidated Financial Statements illustrating the effect of these corrections on the amounts previously reported in the Company's fiscal 2014 Annual Report on Form 10-K:



	NIKE, Inc. Consolidated Statements of Cash Flows
	Year Ended May 31, 2014									Year Ended May 31, 2013							Year Ended May 31, 2012
(In millions)	As Reported			Adjustment			As Revised			As Reported		Adjustment			As Revised		As Reported		Adjustment			As Revised
Cash provided by operations:
Net income	$	2,693		$	—		$	2,693		$	2,472	$	—		$	2,472	$	2,211	$	—		$	2,211
Income charges (credits) not affecting cash:
Amortization and other	114			(46		)	68			66		(2		)	64		23		45			68
Net foreign currency adjustments	—			56			56			—		66			66		—		63			63
Cash provided by operations	3,003			10			3,013			2,968		64			3,032		1,824		108			1,932
Effect of exchange rate changes on cash and equivalents	1			(10		)	(9		)	100		(64		)	36		67		(108		)	(41		)
Net (decrease) increase in cash and equivalents	(1,117		)	—			(1,117		)	1,083		—			1,083		377		—			377
Cash and equivalents, beginning of year	3,337			—			3,337			2,254		—			2,254		1,877		—			1,877
CASH AND EQUIVALENTS, END OF YEAR	$	2,220		$	—		$	2,220		$	3,337	$	—		$	3,337	$	2,254	$	—		$	2,254

Accrued Liabilities (Tables)

Schedule of Accrued Liabilities

Accrued liabilities included the following:



	As of February 28,		As of May 31,
(In millions)	2015		2014
Compensation and benefits, excluding taxes	$	849	$	782
Collateral received from counterparties to hedging instruments	769		—
Endorsement compensation	315		328
Dividends payable	241		209
Taxes other than income taxes	237		204
Fair value of derivatives	167		85
Advertising and marketing	126		133
Import and logistics costs	111		127
Other⁽¹⁾	748		623
TOTAL ACCRUED LIABILITIES	$	3,563	$	2,491


(1)	Other consists of various accrued expenses with no individual item accounting for more than 5% of the total Accrued liabilities balance at February 28, 2015 and May 31, 2014.

Fair Value Measurements (Tables)

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 February 28, 2015 and May 31, 2014, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement.



	As of February 28, 2015
(In millions)	Assets at Fair Value		Cash and Equivalents		Short-term Investments		Other Long-term Assets
Cash	$	778	$	778	$	—	$	—
Level 1:
U.S. Treasury securities	1,017		75		942		—
Level 2:
Time deposits	341		341		—		—
U.S. Agency securities	904		110		794		—
Commercial paper and bonds	785		175		610		—
Money market funds	1,536		1,536		—		—
Total Level 2:	3,566		2,162		1,404		—
Level 3:
Non-marketable preferred stock	6		—		—		6
TOTAL	$	5,367	$	3,015	$	2,346	$	6



	As of May 31, 2014
(In millions)	Assets at Fair Value		Cash and Equivalents		Short-term Investments		Other Long-term Assets
Cash	$	780	$	780	$	—	$	—
Level 1:
U.S. Treasury securities	1,137		151		986		—
Level 2:
Time deposits	227		227		—		—
U.S. Agency securities	1,027		25		1,002		—
Commercial paper and bonds	959		25		934		—
Money market funds	1,012		1,012		—		—
Total Level 2:	3,225		1,289		1,936		—
Level 3:
Non-marketable preferred stock	7		—		—		7
TOTAL	$	5,149	$	2,220	$	2,922	$	7

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following tables present information about the Company’s derivative assets and liabilities measured at fair value on a recurring basis as of February 28, 2015 and May 31, 2014, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement.



	As of February 28, 2015
	Derivative Assets						Derivative Liabilities
(In millions)	Assets at Fair Value		Other Current Assets		Other Long-term Assets		Liabilities at Fair Value		Accrued Liabilities		Other Long-term Liabilities
Level 2:
Foreign exchange forwards and options⁽¹⁾	$	1,459	$	1,005	$	454	$	195	$	167	$	28
Embedded derivatives	1		1		—		—		—		—
Interest rate swaps⁽²⁾	47		47		—		—		—		—
TOTAL	$	1,507	$	1,053	$	454	$	195	$	167	$	28

(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 $193 million as of February 28, 2015. As of that date, the Company had received $736 million of cash collateral and $77 million of securities from various counterparties related to these foreign exchange derivative instruments. No amount of collateral was posted on the Company’s derivative liability balance as of February 28, 2015.


(2)	As of February 28, 2015, the Company had received $33 million of cash collateral related to its interest rate swaps.



	As of May 31, 2014
	Derivative Assets						Derivative Liabilities
(In millions)	Assets at Fair Value		Other Current Assets		Other Long-term Assets		Liabilities at Fair Value		Accrued Liabilities		Other Long-term Liabilities
Level 2:
Foreign exchange forwards and options⁽¹⁾	$	127	$	101	$	26	$	85	$	84	$	1
Interest rate swaps⁽¹⁾	6		—		6		—		—		—
TOTAL	$	133	$	101	$	32	$	85	$	84	$	1


(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 $63 million as of May 31, 2014. No amounts of collateral were received or posted on the Company’s derivative assets and liabilities as of May 31, 2014.

The following table presents the fair values of derivative instruments included within the Unaudited Condensed Consolidated Balance Sheets as of February 28, 2015 and May 31, 2014:



	Derivative Assets					Derivative Liabilities
(In millions)	Balance Sheet Location	February 28, 2015		May 31, 2014		Balance Sheet Location	February 28, 2015		May 31, 2014
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	$	762	$	76	Accrued liabilities	$	141	$	57
Interest rate swaps	Prepaid expenses and other current assets	47		—		Accrued liabilities	—		—
Foreign exchange forwards and options	Deferred income taxes and other assets	454		26		Deferred income taxes and other liabilities	28		1
Interest rate swaps	Deferred income taxes and other assets	—		6		Deferred income taxes and other liabilities	—		—
Total derivatives formally designated as hedging instruments		1,263		108			169		58
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	243		25		Accrued liabilities	26		27
Embedded derivatives	Prepaid expenses and other current assets	1		—		Accrued liabilities	—		—
Total derivatives not designated as hedging instruments		244		25			26		27
TOTAL DERIVATIVES		$	1,507	$	133		$	195	$	85

Stock-Based Compensation (Tables)

Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan

The following table summarizes the Company’s total stock-based compensation expense recognized in Operating overhead expense:



	Three Months Ended February 28,				Nine Months Ended February 28,
(In millions)	2015		2014		2015		2014
Stock options⁽¹⁾	$	35	$	32	$	100	$	93
ESPPs	5		5		17		16
Restricted stock	8		6		23		22
TOTAL STOCK-BASED COMPENSATION EXPENSE	$	48	$	43	$	140	$	131

(1)

Expense for stock options includes the expense associated with stock appreciation rights. Accelerated stock option expense is recorded for employees eligible for accelerated stock option vesting upon retirement. Accelerated stock option expense for the three month periods ended February 28, 2015 and 2014 was $5 million and $3 million, respectively, and for the nine month periods ended February 28, 2015 and 2014 was $14 million and $11 million, respectively.

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The weighted average assumptions used to estimate these fair values are as follows:



	Nine Months Ended February 28,
	2015		2014
Dividend yield	1.2	%	1.3	%
Expected volatility	23.6	%	27.9	%
Weighted average expected life (in years)	5.8		5.3
Risk-free interest rate	1.7	%	1.3	%

Earnings Per Share (Tables)

Schedule of Earnings Per Share, Basic and Diluted

The following is a reconciliation from basic earnings per common share to diluted earnings per common share. The computation of diluted earnings per common share omitted options to purchase an additional 0.1 million and 0.1 million shares of common stock outstanding for the three month periods ended February 28, 2015 and 2014, respectively, and options to purchase an additional 0.1 million and 0.0 million shares of common stock outstanding for the nine month periods ended February 28, 2015 and 2014, respectively, because the options were anti-dilutive.



	Three Months Ended February 28,				Nine Months Ended February 28,
(In millions, except per share data)	2015		2014		2015		2014
Determination of shares:
Weighted average common shares outstanding	861.4		882.3		863.2		886.6
Assumed conversion of dilutive stock options and awards	22.4		22.5		22.3		22.5
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING	883.8		904.8		885.5		909.1

Earnings per common share:
Basic	$	0.92	$	0.77	$	2.79	$	2.25
Diluted	$	0.89	$	0.75	$	2.72	$	2.19

Risk Management and Derivatives (Tables)

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 February 28, 2015 and May 31, 2014, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement.



	As of February 28, 2015
	Derivative Assets						Derivative Liabilities
(In millions)	Assets at Fair Value		Other Current Assets		Other Long-term Assets		Liabilities at Fair Value		Accrued Liabilities		Other Long-term Liabilities
Level 2:
Foreign exchange forwards and options⁽¹⁾	$	1,459	$	1,005	$	454	$	195	$	167	$	28
Embedded derivatives	1		1		—		—		—		—
Interest rate swaps⁽²⁾	47		47		—		—		—		—
TOTAL	$	1,507	$	1,053	$	454	$	195	$	167	$	28

(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 $193 million as of February 28, 2015. As of that date, the Company had received $736 million of cash collateral and $77 million of securities from various counterparties related to these foreign exchange derivative instruments. No amount of collateral was posted on the Company’s derivative liability balance as of February 28, 2015.


(2)	As of February 28, 2015, the Company had received $33 million of cash collateral related to its interest rate swaps.



	As of May 31, 2014
	Derivative Assets						Derivative Liabilities
(In millions)	Assets at Fair Value		Other Current Assets		Other Long-term Assets		Liabilities at Fair Value		Accrued Liabilities		Other Long-term Liabilities
Level 2:
Foreign exchange forwards and options⁽¹⁾	$	127	$	101	$	26	$	85	$	84	$	1
Interest rate swaps⁽¹⁾	6		—		6		—		—		—
TOTAL	$	133	$	101	$	32	$	85	$	84	$	1


(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 $63 million as of May 31, 2014. No amounts of collateral were received or posted on the Company’s derivative assets and liabilities as of May 31, 2014.

The following table presents the fair values of derivative instruments included within the Unaudited Condensed Consolidated Balance Sheets as of February 28, 2015 and May 31, 2014:



	Derivative Assets					Derivative Liabilities
(In millions)	Balance Sheet Location	February 28, 2015		May 31, 2014		Balance Sheet Location	February 28, 2015		May 31, 2014
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	$	762	$	76	Accrued liabilities	$	141	$	57
Interest rate swaps	Prepaid expenses and other current assets	47		—		Accrued liabilities	—		—
Foreign exchange forwards and options	Deferred income taxes and other assets	454		26		Deferred income taxes and other liabilities	28		1
Interest rate swaps	Deferred income taxes and other assets	—		6		Deferred income taxes and other liabilities	—		—
Total derivatives formally designated as hedging instruments		1,263		108			169		58
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	243		25		Accrued liabilities	26		27
Embedded derivatives	Prepaid expenses and other current assets	1		—		Accrued liabilities	—		—
Total derivatives not designated as hedging instruments		244		25			26		27
TOTAL DERIVATIVES		$	1,507	$	133		$	195	$	85

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The following tables present the amounts affecting the Unaudited Condensed Consolidated Statements of Income for the three and nine months ended February 28, 2015 and 2014:



(In millions)	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives⁽¹⁾						Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income⁽¹⁾
(In millions)	Three Months Ended February 28, 2015			Nine Months Ended February 28, 2015			Location of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income	Three Months Ended February 28, 2015			Nine Months Ended February 28, 2015
Derivatives designated as cash flow hedges:
Foreign exchange forwards and options	$	(146	)	$	(188	)	Revenues	$	(17	)	$	(53	)
Foreign exchange forwards and options	547			946			Cost of sales	74			87
Foreign exchange forwards and options	—			—			Total selling and administrative expense	—			—
Foreign exchange forwards and options	277			417			Other (income) expense, net	42			60
Interest rate swaps	44			44			Interest expense (income), net	—			—
Total designated cash flow hedges	$	722		$	1,219			$	99		$	94


(1)	For the three and nine months ended February 28, 2015, the amounts recorded in Other (income) expense, net as a result of hedge ineffectiveness and the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial.



(In millions)	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives⁽¹⁾						Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income⁽¹⁾
(In millions)	Three Months Ended February 28, 2014			Nine Months Ended February 28, 2014			Location of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income	Three Months Ended February 28, 2014			Nine Months Ended February 28, 2014
Derivatives designated as cash flow hedges:
Foreign exchange forwards and options	$	(20	)	$	(39	)	Revenues	$	(1	)	$	20
Foreign exchange forwards and options	(12		)	(100		)	Cost of sales	(5		)	18
Foreign exchange forwards and options	1			4			Total selling and administrative expense	—			—
Foreign exchange forwards and options	(5		)	(28		)	Other (income) expense, net	(5		)	6
Total designated cash flow hedges	$	(36	)	$	(163	)		$	(11	)	$	44


(1)	For the three and nine months ended February 28, 2014, the amounts recorded in Other (income) expense, net as a result of hedge ineffectiveness and the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial.



	Amount of Gain (Loss) Recognized in Income on Derivatives										Location of Gain (Loss) Recognized in Income on Derivatives
	Three Months Ended February 28,					Nine Months Ended February 28,
(In millions)	2015		2014			2015		2014
Derivatives designated as fair value hedges:
Interest rate swaps⁽¹⁾	$	1	$	1		$	3	$	3		Interest expense (income), net
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	$	278	$	(11	)	$	556	$	(50	)	Other (income) expense, net
Embedded derivatives	$	2	$	1		$	3	$	—		Other (income) expense, net


(1)	All interest rate swaps designated as fair value hedges meet the shortcut method requirements under the accounting standards for derivatives and hedging. Accordingly, changes in the fair values of the interest rate swaps are considered to exactly offset changes in the fair value of the underlying long-term debt. Refer to “Fair Value Hedges” in this note for additional detail.

Accumulated Other Comprehensive Income (Tables)

Schedule of Accumulated Other Comprehensive Income

The changes in Accumulated other comprehensive income, net of tax, for the three and nine months ended February 28, 2015 were as follows:



(In millions)	Foreign Currency Translation Adjustment⁽¹⁾			Cash Flow Hedges			Net Investment Hedges⁽¹⁾		Other			Total
Balance at November 30, 2014	$	(23	)	$	500		$	95	$	(47	)	$	525
Other comprehensive gains (losses) before reclassifications⁽²⁾	15			661			—		15			691
Reclassifications to net income of previously deferred (gains) losses⁽³⁾	—			(92		)	—		(13		)	(105		)
Other comprehensive income (loss)	15			569			—		2			586
Balance at February 28, 2015	$	(8	)	$	1,069		$	95	$	(45	)	$	1,111


(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 $(3) million, $(61) million, $0 million, $(5) million and $(69) million, respectively.


(3)	Net of tax (benefit) expense of $0 million, $7 million, $0 million, $4 million and $11 million, respectively.



(In millions)	Foreign Currency Translation Adjustment⁽¹⁾			Cash Flow Hedges			Net Investment Hedges⁽¹⁾		Other			Total
Balance at May 31, 2014	$	9		$	32		$	95	$	(51	)	$	85
Other comprehensive gains (losses) before reclassifications⁽²⁾	(17		)	1,131			—		29			1,143
Reclassifications to net income of previously deferred (gains) losses⁽³⁾	—			(94		)	—		(23		)	(117		)
Other comprehensive income (loss)	(17		)	1,037			—		6			1,026
Balance at February 28, 2015	$	(8	)	$	1,069		$	95	$	(45	)	$	1,111


(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 $(3) million, $(88) million, $0 million, $(8) million and $(99) million, respectively.


(3)	Net of tax (benefit) expense of $0 million, $0 million, $0 million, $7 million and $7 million, respectively.

The changes in Accumulated other comprehensive income, net of tax, for the three and nine months ended February 28, 2014 were as follows:



(In millions)	Foreign Currency Translation Adjustment⁽¹⁾			Cash Flow Hedges			Net Investment Hedges⁽¹⁾		Other			Total
Balance at November 30, 2013	$	24		$	28		$	95	$	(57	)	$	90
Other comprehensive gains (losses) before reclassifications⁽²⁾	(34		)	(31		)	—		(3		)	(68		)
Reclassifications to net income of previously deferred (gains) losses⁽³⁾	—			10			—		1			11
Other comprehensive income (loss)	(34		)	(21		)	—		(2		)	(57		)
Balance at February 28, 2014	$	(10	)	$	7		$	95	$	(59	)	$	33


(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, $5 million, $0 million, $0 million and $5 million, respectively.


(3)	Net of tax (benefit) expense of $0 million, $(1) million, $0 million, $0 million and $(1) million, respectively.



(In millions)	Foreign Currency Translation Adjustment⁽¹⁾			Cash Flow Hedges			Net Investment Hedges⁽¹⁾		Other			Total
Balance at May 31, 2013	$	41		$	193		$	95	$	(55	)	$	274
Other comprehensive gains (losses) before reclassifications⁽²⁾	(51		)	(151		)	—		(7		)	(209		)
Reclassifications to net income of previously deferred (gains) losses⁽³⁾	—			(35		)	—		3			(32		)
Other comprehensive income (loss)	(51		)	(186		)	—		(4		)	(241		)
Balance at February 28, 2014	$	(10	)	$	7		$	95	$	(59	)	$	33


(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, $12 million, $0 million, $0 million and $12 million, respectively.


(3)	Net of tax (benefit) expense of $0 million, $9 million, $0 million, $0 million and $9 million, respectively.

Reclassification out of Accumulated Other Comprehensive Income

The following table summarizes the reclassifications from Accumulated other comprehensive income to the Unaudited Condensed Consolidated Statements of Income:



	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
	Three Months Ended February 28,						Nine Months Ended February 28,						Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
(In millions)	2015			2014			2015			2014
Gains (losses) on cash flow hedges:
Foreign exchange forwards and options	$	(17	)	$	(1	)	$	(53	)	$	20		Revenues
Foreign exchange forwards and options	74			(5		)	87			18			Cost of sales
Foreign exchange forwards and options	42			(5		)	60			6			Other (income) expense, net
Total before tax	99			(11		)	94			44
Tax (expense) benefit	(7		)	1			—			(9		)
Gain (loss) net of tax	92			(10		)	94			35
Gains (losses) on other	17			(1		)	30			(3		)	Other (income) expense, net
Total before tax	17			(1		)	30			(3		)
Tax (expense)	(4		)	—			(7		)	—
Gain (loss) net of tax	13			(1		)	23			(3		)
Total net gain (loss) reclassified for the period	$	105		$	(11	)	$	117		$	32

Operating Segments (Tables)

Schedule of Segment Reporting Information, by Segment



	Three Months Ended February 28,						Nine Months Ended February 28,
(In millions)	2015			2014			2015			2014
REVENUES
North America	$	3,254		$	3,069		$	10,008		$	9,005
Western Europe	1,416			1,292			4,442			3,667
Central & Eastern Europe	319			356			1,057			1,017
Greater China	801			697			2,238			1,900
Japan	166			177			525			545
Emerging Markets	955			937			2,964			2,869
Global Brand Divisions	28			26			85			89
Total NIKE Brand	6,939			6,554			21,319			19,092
Converse	538			420			1,547			1,274
Corporate	(17		)	(2		)	(44		)	8
TOTAL NIKE CONSOLIDATED REVENUES	$	7,460		$	6,972		$	22,822		$	20,374
EARNINGS BEFORE INTEREST AND TAXES
North America	$	830		$	729		$	2,585		$	2,189
Western Europe	335			275			1,000			663
Central & Eastern Europe	51			79			176			208
Greater China	251			234			727			601
Japan	22			21			62			92
Emerging Markets	234			228			626			681
Global Brand Divisions	(552		)	(528		)	(1,637		)	(1,444		)
Total NIKE Brand	1,171			1,038			3,539			2,990
Converse	163			133			437			402
Corporate	(282		)	(282		)	(799		)	(735		)
Total NIKE Consolidated Earnings Before Interest and Taxes	1,052			889			3,177			2,657
Interest expense (income), net	6			9			24			25
TOTAL NIKE CONSOLIDATED EARNINGS BEFORE TAXES	$	1,046		$	880		$	3,153		$	2,632

Reconciliation of Assets from Segment to Consolidated



	As of February 28,		As of May 31,
(In millions)	2015		2014
ACCOUNTS RECEIVABLE, NET
North America	$	1,546	$	1,505
Western Europe	391		341
Central & Eastern Europe	220		280
Greater China	98		68
Japan	95		162
Emerging Markets	551		819
Global Brand Divisions	90		71
Total NIKE Brand	2,991		3,246
Converse	290		171
Corporate	13		17
TOTAL ACCOUNTS RECEIVABLE, NET	$	3,294	$	3,434
INVENTORIES
North America	$	2,146	$	1,758
Western Europe	681		711
Central & Eastern Europe	149		271
Greater China	246		221
Japan	123		94
Emerging Markets	571		633
Global Brand Divisions	26		18
Total NIKE Brand	3,942		3,706
Converse	219		261
Corporate	85		(20		)
TOTAL INVENTORIES	$	4,246	$	3,947
PROPERTY, PLANT AND EQUIPMENT, NET
North America	$	598	$	545
Western Europe	411		384
Central & Eastern Europe	42		51
Greater China	240		232
Japan	213		258
Emerging Markets	102		115
Global Brand Divisions	500		537
Total NIKE Brand	2,106		2,122
Converse	93		70
Corporate	663		642
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET	$	2,862	$	2,834

Summary of Significant Accounting Policies - Revisions (Details) (USD $)

In Millions, except Per Share data, unless otherwise specified

3 Months Ended

6 Months Ended

9 Months Ended

12 Months Ended

Feb. 28, 2015

Aug. 31, 2014

Feb. 28, 2014

Nov. 30, 2014

Feb. 28, 2015

Feb. 28, 2014

May 31, 2014

May 31, 2013

May 31, 2012

Net Income (Loss) [Abstract]

Total selling and administrative expense

$ 2,379

$ 2,169

$ 7,297

$ 6,318

Total before tax

1,046

880

3,153

2,632

Income tax expense

255

198

745

637

Net income

791

962

682

1,617

2,408

1,995

2,693

2,472

2,211

Basic earnings per common share for NIKE, Inc. (in dollars per share)

$ 0.92

$ 0.77

$ 2.79

$ 2.25

Diluted earnings per common share for NIKE, Inc. (in dollars per share)

$ 0.89

$ 0.75

$ 2.72

$ 2.19

Comprehensive Income [Abstract]

Net income

791

962

682

1,617

2,408

1,995

2,693

2,472

2,211

TOTAL COMPREHENSIVE INCOME

1,377

625

3,434

1,754

Cash provided by operations:

Net income

791

962

682

1,617

2,408

1,995

2,693

2,472

2,211

Amortization and other

8

15

28

53

68

64

68

Net foreign currency adjustments

53

243

411

59

56

66

63

(Increase) in inventories

(510)

(349)

Increase (decrease) in accounts payable, accrued liabilities and income taxes payable

505

(49)

Cash provided by operations

683

1,547

3,338

1,685

3,013

3,032

1,932

Cash used by investing activities:

Purchases of short-term investments

(3,754)

(4,235)

Maturities of short-term investments

(2,624)

(2,885)

Sales of short-term investments

1,718

789

Increase in other assets, net of other liabilities

0

(1)

Cash (used) provided by investing activities

(382)

(1,231)

Effect of exchange rate changes on cash and equivalents

2

(24)

(66)

(10)

(9)

36

(41)

Cash used by financing activities:

Net increase (decrease) in cash and equivalents

83

53

795

(1,473)

(1,117)

1,083

377

Cash and equivalents, beginning of period

2,273

2,220

3,337

2,254

1,877

CASH AND EQUIVALENTS, END OF PERIOD

3,015

2,303

1,864

2,273

3,015

1,864

2,220

3,337

2,254

As Reported

Net Income (Loss) [Abstract]

Total selling and administrative expense

2,166

6,310

Total before tax

883

2,640

Income tax expense

198

638

Net income

962

685

1,617

2,002

2,693

2,472

2,211

Basic earnings per common share for NIKE, Inc. (in dollars per share)

$ 0.78

$ 2.26

Diluted earnings per common share for NIKE, Inc. (in dollars per share)

$ 0.76

$ 2.20

Comprehensive Income [Abstract]

Net income

962

685

1,617

2,002

2,693

2,472

2,211

TOTAL COMPREHENSIVE INCOME

628

1,761

Cash provided by operations:

Net income

962

685

1,617

2,002

2,693

2,472

2,211

Amortization and other

(34)

(54)

102

114

66

23

Net foreign currency adjustments

0

(Increase) in inventories

(343)

Increase (decrease) in accounts payable, accrued liabilities and income taxes payable

(54)

Cash provided by operations

588

1,235

1,683

3,003

2,968

1,824

Cash used by investing activities:

Purchases of short-term investments

(4,146)

Maturities of short-term investments

(3,030)

Sales of short-term investments

555

Increase in other assets, net of other liabilities

(16)

Cash (used) provided by investing activities

(1,246)

Effect of exchange rate changes on cash and equivalents

97

288

7

1

100

67

Cash used by financing activities:

Net increase (decrease) in cash and equivalents

83

53

(1,473)

(1,117)

1,083

377

Cash and equivalents, beginning of period

2,220

3,337

2,254

1,877

CASH AND EQUIVALENTS, END OF PERIOD

2,303

1,864

2,273

1,864

2,220

3,337

2,254

Adjustment

Net Income (Loss) [Abstract]

Total selling and administrative expense

3

8

Total before tax

(3)

(8)

Income tax expense

0

(1)

Net income

0

(3)

0

(7)

0

Basic earnings per common share for NIKE, Inc. (in dollars per share)

$ (0.01)

Diluted earnings per common share for NIKE, Inc. (in dollars per share)

$ (0.01)

Comprehensive Income [Abstract]

Net income

0

(3)

0

(7)

0

TOTAL COMPREHENSIVE INCOME

(3)

(7)

Cash provided by operations:

Net income

0

(3)

0

(7)

0

Amortization and other

42

69

(49)

(46)

(2)

45

Net foreign currency adjustments

53

243

59

56

66

63

(Increase) in inventories

(6)

Increase (decrease) in accounts payable, accrued liabilities and income taxes payable

5

Cash provided by operations

2

Cash used by investing activities:

Purchases of short-term investments

(89)

Maturities of short-term investments

145

Sales of short-term investments

234

Increase in other assets, net of other liabilities

15

Cash (used) provided by investing activities

15

Cash used by financing activities:

Net increase (decrease) in cash and equivalents

0

Cash and equivalents, beginning of period

0

CASH AND EQUIVALENTS, END OF PERIOD

0

Prior Period Revisions to Foreign Currency Adjustments |
Adjustment

Cash provided by operations:

Cash provided by operations

95

312

17

10

64

108

Cash used by investing activities:

Effect of exchange rate changes on cash and equivalents

(95)

(312)

(17)

(10)

(64)

(108)

Prior Year Revision To Capitalized Costs |
Adjustment

Net Income (Loss) [Abstract]

Net income

(3)

(7)

Comprehensive Income [Abstract]

Net income

(3)

(7)

Cash provided by operations:

Net income

(3)

(7)

Cash provided by operations

(15)

Cash used by investing activities:

Cash (used) provided by investing activities

(15)

Prior Year Revision To Short-term Investments |
Adjustment

Cash used by investing activities:

Purchases of short-term investments

(89)

Maturities of short-term investments

145

Sales of short-term investments

$ 234

Inventories - Additional Information (Detail) (USD $)

In Millions, unless otherwise specified

Feb. 28, 2015

May 31, 2014

Inventory Disclosure [Abstract]

Inventory balances (substantially all finished goods)

$ 4,246

$ 3,947

Accrued Liabilities (Detail) (USD $)

In Millions, unless otherwise specified

Feb. 28, 2015

May 31, 2014

Accrued Liabilities, Current [Abstract]

Compensation and benefits, excluding taxes

$ 849

$ 782

Collateral received from counterparties to hedging instruments

769

0

Endorsement compensation

315

328

Dividends payable

241

209

Taxes other than income taxes

237

204

Fair value of derivatives

167

85

Advertising and marketing

126

133

Import and logistics costs

111

127

Other

748 ¹

623 ¹

TOTAL ACCRUED LIABILITIES

$ 3,563

$ 2,491

Maximum percent of accrued liabilities to be included in Other (percent)

5.00%

[1] Other consists of various accrued expenses with no individual item accounting for more than 5% of the total Accrued liabilities balance at February 28, 2015 and May 31, 2014.

Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, USD $)

In Millions, unless otherwise specified

Feb. 28, 2015

May 31, 2014

Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]

Cash

$ 778

$ 780

Assets at Fair Value

5,367

5,149

Cash and Cash Equivalents

3,015

2,220

Investments, Fair Value Disclosure

2,346

2,922

Other Long-term Assets

6

7

Fair Value Measurements Using Level 1 |
U.S. Treasury securities

Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]

Assets at Fair Value

1,017

1,137

Cash and Cash Equivalents

75

151

Investments, Fair Value Disclosure

942

986

Other Long-term Assets

0

Fair Value Measurements Using Level 2

Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]

Assets at Fair Value

3,566

3,225

Cash and Cash Equivalents

2,162

1,289

Investments, Fair Value Disclosure

1,404

1,936

Other Long-term Assets

0

Fair Value Measurements Using Level 2 |
Time deposits

Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]

Assets at Fair Value

341

227

Cash and Cash Equivalents

341

227

Investments, Fair Value Disclosure

0

Other Long-term Assets

0

Fair Value Measurements Using Level 2 |
U.S. Agency securities

Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]

Assets at Fair Value

904

1,027

Cash and Cash Equivalents

110

25

Investments, Fair Value Disclosure

794

1,002

Other Long-term Assets

0

Fair Value Measurements Using Level 2 |
Commercial paper and bonds

Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]

Assets at Fair Value

785

959

Cash and Cash Equivalents

175

25

Investments, Fair Value Disclosure

610

934

Other Long-term Assets

0

Fair Value Measurements Using Level 2 |
Money market funds

Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]

Assets at Fair Value

1,536

1,012

Cash and Cash Equivalents

1,536

1,012

Investments, Fair Value Disclosure

0

Other Long-term Assets

0

Fair Value Measurements Using Level 3 |
Non-marketable preferred stock

Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]

Assets at Fair Value

6

7

Cash and Cash Equivalents

0

Investments, Fair Value Disclosure

0

Other Long-term Assets

$ 6

$ 7

Fair Value Measurements - Derivative Assets and Liabilities at Fair Value (Detail) (USD $)

In Millions, unless otherwise specified

3 Months Ended

9 Months Ended

Feb. 28, 2015

Feb. 28, 2014

Feb. 28, 2015

Feb. 28, 2014

May 31, 2014

Derivatives, Fair Value [Line Items]

Accrued Liabilities

$ 167

$ 85

Collateral received from counterparties to hedging instruments

769

0

Investment Income, Interest

1

2

4

Fair Value, Measurements, Recurring

Derivatives, Fair Value [Line Items]

Reduction in derivative assets if netted

193

63

Reduction in derivative liabilities if netted

193

63

Fair Value Measurements Using Level 2 |
Fair Value, Measurements, Recurring

Derivatives, Fair Value [Line Items]

Assets at Fair Value

1,507

133 ¹

Other Current Assets

1,053

101 ¹

Other Long-term Assets

454

32 ¹

Liabilities at Fair Value

195

85

Accrued Liabilities

167

84 ¹

Other Long-term Liabilities

28

1 ¹

Fair Value Measurements Using Level 2 |
Fair Value, Measurements, Recurring |
Foreign exchange forwards and options

Derivatives, Fair Value [Line Items]

Assets at Fair Value

1,459 ²

127 ¹

Other Current Assets

1,005 ²

101 ¹

Other Long-term Assets

454 ²

26 ¹

Liabilities at Fair Value

195 ²

85 ¹

Accrued Liabilities

167 ²

84 ¹

Other Long-term Liabilities

28 ²

1 ¹

Fair Value Measurements Using Level 2 |
Fair Value, Measurements, Recurring |
Embedded derivatives

Derivatives, Fair Value [Line Items]

Assets at Fair Value

1

Other Current Assets

1

Other Long-term Assets

0

Liabilities at Fair Value

0

Accrued Liabilities

0

Other Long-term Liabilities

0

Fair Value Measurements Using Level 2 |
Fair Value, Measurements, Recurring |
Interest rate swap

Derivatives, Fair Value [Line Items]

Assets at Fair Value

47 ³

6 ¹

Other Current Assets

47 ³

0 ¹

Other Long-term Assets

0 ³

6 ¹

Liabilities at Fair Value

0 ³

0 ¹

Accrued Liabilities

0 ³

0 ¹

Other Long-term Liabilities

0 ³

0 ¹

Accrued Liabilities

Derivatives, Fair Value [Line Items]

Collateral received from counterparties to hedging instruments

769

Accrued Liabilities |
Foreign exchange forwards and options

Derivatives, Fair Value [Line Items]

Collateral received from counterparties to hedging instruments

736

Accrued Liabilities |
Interest rate swap

Derivatives, Fair Value [Line Items]

Collateral received from counterparties to hedging instruments

33

Securities Pledged as Collateral

Derivatives, Fair Value [Line Items]

Collateral received from counterparties to hedging instruments

$ 77

[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 $63 million as of May 31, 2014. No amounts of collateral were received or posted on the Company’s derivative assets and liabilities as of May 31, 2014.

[2] 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 $193 million as of February 28, 2015. As of that date, the Company had received $736 million of cash collateral and $77 million of securities from various counterparties related to these foreign exchange derivative instruments. No amount of collateral was posted on the Company’s derivative liability balance as of February 28, 2015.

[3] As of February 28, 2015, the Company had received $33 million of cash collateral related to its interest rate swaps.

Fair Value Measurements - Additional Information (Detail) (USD $)

In Millions, unless otherwise specified

3 Months Ended

9 Months Ended

Feb. 28, 2015

Feb. 28, 2014

Feb. 28, 2015

Feb. 28, 2014

May 31, 2014

Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]

Collateral received from counterparties to hedging instruments

$ 769

$ 0

Available-for-sale securities with maturity dates within one year from purchase date

1,727

2,287

Available-for-sale securities with maturity dates over one year and less than five years from purchase date

619

635

Investment Income, Interest

1

2

4

Fair value of long term debt

1,198

1,154

Cash and Cash Equivalents

Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]

Collateral received from counterparties to hedging instruments

769

Prepaid Expenses and Other Current Assets [Member]

Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]

Outstanding receivables

250

Foreign exchange forwards and options |
Cash and Cash Equivalents

Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]

Collateral received from counterparties to hedging instruments

736

Interest rate swap |
Cash and Cash Equivalents

Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]

Collateral received from counterparties to hedging instruments

$ 33

Income Taxes - Income before Income Taxes (Detail) (USD $)

In Millions, unless otherwise specified

9 Months Ended

3 Months Ended

Feb. 28, 2015

Feb. 28, 2014

May 31, 2014

Feb. 28, 2015

Tax Year 2011

Domestic Tax Authority

Income Tax Contingency [Line Items]

Effective tax rate on continuing operations (percent)

23.60%

24.20%

Total gross unrecognized tax benefits, excluding related interest and penalties

$ 444

$ 506

Total gross unrecognized tax benefits, excluding related interest and penalties, amount which would affect the Company's effective tax rate if recognized in future periods

252

Accrued interest and penalties related to uncertain tax positions (excluding federal benefit)

167

Proposed increase in tax related to the foreign tax credit matter

31

Estimated decrease in total gross unrecognized tax benefits as a result of resolutions of global tax examinations and expiration of applicable statutes of limitations

38

nke_ChangeInIncomeTaxPenaltiesAndInterestAccrued

$ 0

Stock Based Compensation - Additional Information (Detail) (Class B Common Stock, USD $)

In Millions, except Share data, unless otherwise specified

3 Months Ended

9 Months Ended

Feb. 28, 2015

Feb. 28, 2014

Feb. 28, 2015

Feb. 28, 2014

Employee Stock

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Employee stock purchase plans, payroll deductions (percent)

10.00%

Employee stock purchase plan offering period (in months)

6 months

Shares purchased, price as percentage of lower of the fair market value (percent)

85.00%

Stock Incentive Plan 1990

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Shares available for grant (in shares)

326,000,000

Stock options vesting period (in years)

4 years

Stock options expiration from the date of grant (in years)

10 years

Unrecognized compensation costs from stock options, net of estimated forfeitures

$ 216

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 2 months 12 days

Weighted average fair value per share of the options granted (in dollars per share)

$ 16.94

$ 14.88

Minimum term of market traded options for estimates of expected volatility (in years)

1 year

Stock Incentive Plan 1990 |
Employee Stock

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Accelerated stock option expense

$ 5

$ 3

$ 14

$ 11

Stock-Based Compensation - Total Stock-Based Compensation Expense (Detail) (USD $)

In Millions, unless otherwise specified

3 Months Ended

9 Months Ended

Feb. 28, 2015

Feb. 28, 2014

Feb. 28, 2015

Feb. 28, 2014

Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]

Stock-based compensation expense

$ 140

$ 131

Class B Common Stock |
Stock Incentive Plan 1990

Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]

Stock-based compensation expense

48

43

140

131

Class B Common Stock |
Stock Incentive Plan 1990 |
Stock Options

Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]

Stock-based compensation expense

35 ¹

32 ¹

100 ¹

93 ¹

Class B Common Stock |
Stock Incentive Plan 1990 |
ESPPs

Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]

Stock-based compensation expense

5

17

16

Class B Common Stock |
Stock Incentive Plan 1990 |
Restricted stock

Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]

Stock-based compensation expense

$ 8

$ 6

$ 23

$ 22

[1] Expense for stock options includes the expense associated with stock appreciation rights. Accelerated stock option expense is recorded for employees eligible for accelerated stock option vesting upon retirement. Accelerated stock option expense for the three month periods ended February 28, 2015 and 2014 was $5 million and $3 million, respectively, and for the nine month periods ended February 28, 2015 and 2014 was $14 million and $11 million, respectively.

Stock-Based Compensation - Weighted Average Assumptions Used to Estimate Fair Values (Detail) (Stock Incentive Plan 1990, Class B Common Stock)

9 Months Ended

Feb. 28, 2015

Feb. 28, 2014

Stock Incentive Plan 1990 |
Class B Common Stock

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Dividend yield

1.20%

1.30%

Expected volatility

23.60%

27.90%

Weighted average expected life (in years)

5 years 9 months 18 days

5 years 3 months 18 days

Risk-free interest rate

1.70%

1.30%

Earnings Per Share - Additional Information (Detail)

In Millions, unless otherwise specified

3 Months Ended

9 Months Ended

Feb. 28, 2015

Feb. 28, 2014

Feb. 28, 2015

Feb. 28, 2014

Earnings Per Share [Abstract]

Anti-dilutive options not included in the computation of diluted earnings per share

0.1

0

Earnings Per Share - Reconciliation from Basic Earnings Per Share to Diluted Earnings Per Share (Detail) (USD $)

In Millions, except Per Share data, unless otherwise specified

3 Months Ended

9 Months Ended

Feb. 28, 2015

Feb. 28, 2014

Feb. 28, 2015

Feb. 28, 2014

Determination of shares:

Weighted average common shares outstanding (in shares)

861.4

882.3

863.2

886.6

Assumed conversion of dilutive stock options and awards (in shares)

22.4

22.5

22.3

22.5

DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (in shares)

883.8

904.8

885.5

909.1

Basic earnings per common share for NIKE, Inc. (in dollars per share)

$ 0.92

$ 0.77

$ 2.79

$ 2.25

Diluted earnings per common share for NIKE, Inc. (in dollars per share)

$ 0.89

$ 0.75

$ 2.72

$ 2.19

Risk Management and Derivatives - Additional Information (Detail) (USD $)

9 Months Ended

Feb. 28, 2015

May 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Line Items]

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

Percentage of anticipated exposures hedged (percent)

100.00%

Deferred net gains (net of tax) on both outstanding and matured derivatives accumulated in other comprehensive income are expected to be reclassified to net income during the next twelve months as a result of underlying hedged transactions also being recorded in net income

$ 577,000,000

Aggregate fair value of derivative instruments in net liability position

2,000,000

Collateral received from counterparties to hedging instruments

769,000,000

0

Embedded derivatives

Derivative Instruments and Hedging Activities Disclosure [Line Items]

Total notional amount of outstanding derivatives

151,000,000

Undesignated Derivative Instruments

Derivative Instruments and Hedging Activities Disclosure [Line Items]

Total notional amount of outstanding derivatives

5,000,000,000

Minimum

Derivative Instruments and Hedging Activities Disclosure [Line Items]

Typical time period that anticipated exposures are hedged against (in months)

12 months

Minimum fair value of outstanding derivative above which the credit related contingent features require the derivative party to post collateral

50,000,000

Maximum

Derivative Instruments and Hedging Activities Disclosure [Line Items]

Typical time period that anticipated exposures are hedged against (in months)

24 months

Fair Value Hedging [Member] |
Interest rate swap

Derivative Instruments and Hedging Activities Disclosure [Line Items]

Total notional amount of outstanding derivatives

100,000,000

Cash Flow Hedging

Derivative Instruments and Hedging Activities Disclosure [Line Items]

Total notional amount of outstanding derivatives

10,700,000,000

Cash Flow Hedging |
Designated as Hedging Instrument |
Interest rate swap

Derivative Instruments and Hedging Activities Disclosure [Line Items]

Total notional amount of outstanding derivatives

750,000,000

Securities Pledged as Collateral

Derivative Instruments and Hedging Activities Disclosure [Line Items]

Collateral received from counterparties to hedging instruments

77,000,000

Accrued Liabilities

Derivative Instruments and Hedging Activities Disclosure [Line Items]

Collateral received from counterparties to hedging instruments

769,000,000

Accrued Liabilities |
Interest rate swap

Derivative Instruments and Hedging Activities Disclosure [Line Items]

Collateral received from counterparties to hedging instruments

33,000,000

Cash and Cash Equivalents

Derivative Instruments and Hedging Activities Disclosure [Line Items]

Collateral received from counterparties to hedging instruments

769,000,000

Cash and Cash Equivalents |
Interest rate swap

Derivative Instruments and Hedging Activities Disclosure [Line Items]

Collateral received from counterparties to hedging instruments

$ 33,000,000

Risk Management and Derivatives - FV of Derivative Instruments Included within Consolidated Balance Sheet (Detail) (USD $)

In Millions, unless otherwise specified

Feb. 28, 2015

May 31, 2014

Derivatives, Fair Value [Line Items]

Derivative Assets

$ 1,507

$ 133

Derivative Liabilities

195

85

Designated as Hedging Instrument

Derivatives, Fair Value [Line Items]

Derivative Assets

1,263

108

Derivative Liabilities

169

58

Designated as Hedging Instrument |
Foreign exchange forwards and options |
Prepaid Expenses and Other Current Assets [Member]

Derivatives, Fair Value [Line Items]

Derivative Assets

762

76

Designated as Hedging Instrument |
Foreign exchange forwards and options |
Deferred income taxes and other long-term assets

Derivatives, Fair Value [Line Items]

Derivative Assets

454

26

Designated as Hedging Instrument |
Foreign exchange forwards and options |
Accrued Liabilities

Derivatives, Fair Value [Line Items]

Derivative Liabilities

141

57

Designated as Hedging Instrument |
Foreign exchange forwards and options |
Deferred income taxes and other long-term liabilities

Derivatives, Fair Value [Line Items]

Derivative Liabilities

28

1

Designated as Hedging Instrument |
Interest rate swap |
Prepaid Expenses and Other Current Assets [Member]

Derivatives, Fair Value [Line Items]

Derivative Assets

47

0

Designated as Hedging Instrument |
Interest rate swap |
Deferred income taxes and other long-term assets

Derivatives, Fair Value [Line Items]

Derivative Assets

0

6

Designated as Hedging Instrument |
Interest rate swap |
Accrued Liabilities

Derivatives, Fair Value [Line Items]

Derivative Liabilities

0

Designated as Hedging Instrument |
Interest rate swap |
Deferred income taxes and other long-term liabilities

Derivatives, Fair Value [Line Items]

Derivative Liabilities

0

Derivatives not designated as hedging instruments

Derivatives, Fair Value [Line Items]

Derivative Assets

244

25

Derivative Liabilities

26

27

Derivatives not designated as hedging instruments |
Foreign exchange forwards and options |
Prepaid Expenses and Other Current Assets [Member]

Derivatives, Fair Value [Line Items]

Derivative Assets

243

25

Derivatives not designated as hedging instruments |
Foreign exchange forwards and options |
Accrued Liabilities

Derivatives, Fair Value [Line Items]

Derivative Liabilities

26

27

Derivatives not designated as hedging instruments |
Embedded derivatives |
Prepaid Expenses and Other Current Assets [Member]

Derivatives, Fair Value [Line Items]

Derivative Assets

1

0

Derivatives not designated as hedging instruments |
Embedded derivatives |
Accrued Liabilities

Derivatives, Fair Value [Line Items]

Derivative Liabilities

$ 0

Risk Management and Derivatives - Amounts Affecting Consolidated Statements of Income (Detail) (USD $)

In Millions, unless otherwise specified

3 Months Ended

9 Months Ended

Feb. 28, 2015

Feb. 28, 2014

Feb. 28, 2015

Feb. 28, 2014

Derivatives designated as cash flow hedges

Derivative Instruments, Gain (Loss) [Line Items]

Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives

$ 722 ¹

$ (36)²

$ 1,219 ¹

$ (163)²

Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income

99 ¹

(11)²

94 ¹

44 ²

Derivatives designated as cash flow hedges |
Foreign exchange forwards and options |
Revenue

Derivative Instruments, Gain (Loss) [Line Items]

Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives

(146)¹

(20)²

(188)¹

(39)²

Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income

(17)¹

(1)²

(53)¹

20 ²

Derivatives designated as cash flow hedges |
Foreign exchange forwards and options |
Cost of sales

Derivative Instruments, Gain (Loss) [Line Items]

Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives

547 ¹

(12)²

946 ¹

(100)²

Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income

74 ¹

(5)²

87 ¹

18 ²

Derivatives designated as cash flow hedges |
Foreign exchange forwards and options |
Total selling and administrative expense

Derivative Instruments, Gain (Loss) [Line Items]

Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives

0 ¹

1 ²

0 ¹

4 ²

Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income

0 ¹

0 ²

0 ¹

0 ²

Derivatives designated as cash flow hedges |
Foreign exchange forwards and options |
Other (income) expense, net

Derivative Instruments, Gain (Loss) [Line Items]

Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives

277 ¹

(5)²

417 ¹

(28)²

Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income

42 ¹

(5)²

60 ¹

6 ²

Derivatives designated as cash flow hedges |
Interest rate swap |
Interest expense (income), net

Derivative Instruments, Gain (Loss) [Line Items]

Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives

44 ¹

Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income

0 ¹

Fair Value Hedging [Member] |
Interest rate swap |
Interest expense (income), net

Derivative Instruments, Gain (Loss) [Line Items]

Amount of Gain (Loss) Recognized in Income on Derivatives

1 ³

3 ³

Derivatives not designated as hedging instruments |
Foreign exchange forwards and options |
Other (income) expense, net

Derivative Instruments, Gain (Loss) [Line Items]

Amount of Gain (Loss) Recognized in Income on Derivatives

278

(11)

556

(50)

Derivatives not designated as hedging instruments |
Embedded derivatives |
Other (income) expense, net

Derivative Instruments, Gain (Loss) [Line Items]

Amount of Gain (Loss) Recognized in Income on Derivatives

$ 2

$ 1

$ 3

$ 0

[1] For the three and nine months ended February 28, 2015, the amounts recorded in Other (income) expense, net as a result of hedge ineffectiveness and the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial.

[2] For the three and nine months ended February 28, 2014, the amounts recorded in Other (income) expense, net as a result of hedge ineffectiveness and the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial.

[3] All interest rate swaps designated as fair value hedges meet the shortcut method requirements under the accounting standards for derivatives and hedging. Accordingly, changes in the fair values of the interest rate swaps are considered to exactly offset changes in the fair value of the underlying long-term debt. Refer to “Fair Value Hedges” in this note for additional detail.

Accumulated Other Comprehensive Income - Changes in AOCI (Detail) (USD $)

In Millions, unless otherwise specified

3 Months Ended

9 Months Ended

Feb. 28, 2015

Feb. 28, 2014

Feb. 28, 2015

Feb. 28, 2014

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Accumulated other comprehensive income balance at the beginning of the period

$ 525

$ 90

$ 85

$ 274

Other comprehensive gains (losses) before reclassifications, net of tax

691 ¹

(68)²

1,143 ³

(209)⁴

Reclassifications to net income of previously deferred (gains) losses, net of tax

(105)⁵

11 ⁶

(117)⁷

(32)⁸

Other comprehensive income (loss)

586

(57)

1,026

(241)

Accumulated other comprehensive income balance at the end of the period

1,111

33

1,111

33

Other comprehensive income, before reclassification, tax benefit (expense)

(69)

5

(99)

12

Reclassification from accumulated other comprehensive income, tax (benefit) expense

(11)

1

(7)

(9)

Foreign Currency Translation Adjustment

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Accumulated other comprehensive income balance at the beginning of the period

(23)⁹

24 ⁹

9 ⁹

41 ⁹

Other comprehensive gains (losses) before reclassifications, net of tax

15 ¹ ⁹

(34)² ⁹

(17)³ ⁹

(51)⁴ ⁹

Reclassifications to net income of previously deferred (gains) losses, net of tax

0 ⁵ ⁹

0 ⁶ ⁹

0 ⁷ ⁹

0 ⁸ ⁹

Other comprehensive income (loss)

15 ⁹

(34)⁹

(17)⁹

(51)⁹

Accumulated other comprehensive income balance at the end of the period

(8)⁹

(10)⁹

(8)⁹

(10)⁹

Other comprehensive income, before reclassification, tax benefit (expense)

(3)

0

(3)

0

Reclassification from accumulated other comprehensive income, tax (benefit) expense

0

Cash Flow Hedges

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Accumulated other comprehensive income balance at the beginning of the period

500

28

32

193

Other comprehensive gains (losses) before reclassifications, net of tax

661 ¹

(31)²

1,131 ³

(151)⁴

Reclassifications to net income of previously deferred (gains) losses, net of tax

(92)⁵

10 ⁶

(94)⁷

(35)⁸

Other comprehensive income (loss)

569

(21)

1,037

(186)

Accumulated other comprehensive income balance at the end of the period

1,069

7

1,069

7

Other comprehensive income, before reclassification, tax benefit (expense)

(61)

5

(88)

12

Reclassification from accumulated other comprehensive income, tax (benefit) expense

(7)

1

0

(9)

Net Investment Hedges

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Accumulated other comprehensive income balance at the beginning of the period

95 ⁹

Other comprehensive gains (losses) before reclassifications, net of tax

0 ¹ ⁹

0 ² ⁹

0 ³ ⁹

0 ⁴ ⁹

Reclassifications to net income of previously deferred (gains) losses, net of tax

0 ⁵ ⁹

0 ⁶ ⁹

0 ⁷ ⁹

0 ⁸ ⁹

Other comprehensive income (loss)

0 ⁹

Accumulated other comprehensive income balance at the end of the period

95 ⁹

Other comprehensive income, before reclassification, tax benefit (expense)

0

Reclassification from accumulated other comprehensive income, tax (benefit) expense

0

Other

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Accumulated other comprehensive income balance at the beginning of the period

(47)

(57)

(51)

(55)

Other comprehensive gains (losses) before reclassifications, net of tax

15 ¹

(3)²

29 ³

(7)⁴

Reclassifications to net income of previously deferred (gains) losses, net of tax

(13)⁵

1 ⁶

(23)⁷

3 ⁸

Other comprehensive income (loss)

2

(2)

6

(4)

Accumulated other comprehensive income balance at the end of the period

(45)

(59)

(45)

(59)

Other comprehensive income, before reclassification, tax benefit (expense)

(5)

0

(8)

0

Reclassification from accumulated other comprehensive income, tax (benefit) expense

$ (4)

$ 0

$ (7)

$ 0

[1] Net of tax benefit (expense) of $(3) million, $(61) million, $0 million, $(5) million and $(69) million, respectively.

[2] Net of tax benefit (expense) of $0 million, $5 million, $0 million, $0 million and $5 million, respectively.

[3] Net of tax benefit (expense) of $(3) million, $(88) million, $0 million, $(8) million and $(99) million, respectively.

[4] Net of tax benefit (expense) of $0 million, $12 million, $0 million, $0 million and $12 million, respectively.

[5] Net of tax (benefit) expense of $0 million, $7 million, $0 million, $4 million and $11 million, respectively.

[6] Net of tax (benefit) expense of $0 million, $(1) million, $0 million, $0 million and $(1) million, respectively.

[7] Net of tax (benefit) expense of $0 million, $0 million, $0 million, $7 million and $7 million, respectively.

[8] Net of tax (benefit) expense of $0 million, $9 million, $0 million, $0 million and $9 million, respectively.

[9] The accumulated foreign currency translation adjustment and net investment hedge gains/losses related to an investment in a foreign subsidiary are reclassified to Net income upon sale or upon complete or substantially complete liquidation of the respective entity.

Accumulated Other Comprehensive Income - Reclassification out of AOCI (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

9 Months Ended

Feb. 28, 2015

Feb. 28, 2014

Feb. 28, 2015

Feb. 28, 2014

Reclassification out of Accumulated Other Comprehensive Income [Line Items]

Revenues

$ 7,460

$ 6,972

$ 22,822

$ 20,374

Cost of sales

(4,034)

(3,869)

(12,348)

(11,313)

Total selling and administrative expense

(2,379)

(2,169)

(7,297)

(6,318)

Other (income) expense, net

5

(45)

0

(86)

Total before tax

1,046

880

3,153

2,632

Tax (expense) benefit

(255)

(198)

(745)

(637)

Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income

Reclassification out of Accumulated Other Comprehensive Income [Line Items]

NET INCOME

105

(11)

117

32

Gain (losses) on cash flow hedges |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income

Reclassification out of Accumulated Other Comprehensive Income [Line Items]

Total before tax

99

(11)

94

44

Tax (expense) benefit

(7)

1

0

(9)

NET INCOME

92

(10)

94

35

Gain (losses) on cash flow hedges |
Foreign exchange forwards and options |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income

Reclassification out of Accumulated Other Comprehensive Income [Line Items]

Revenues

(17)

(1)

(53)

20

Cost of sales

74

(5)

87

18

Other (income) expense, net

42

(5)

60

6

Other |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income

Reclassification out of Accumulated Other Comprehensive Income [Line Items]

Other (income) expense, net

17

(1)

30

(3)

Total before tax

17

(1)

30

(3)

Tax (expense) benefit

(4)

0

(7)

0

NET INCOME

$ 13

$ (1)

$ 23

$ (3)

Operating Segments - Information by Operating Segments (Detail) (USD $)

In Millions, unless otherwise specified

3 Months Ended

9 Months Ended

Feb. 28, 2015

Feb. 28, 2014

Feb. 28, 2015

Feb. 28, 2014

Segment Reporting, Revenue Reconciling Item [Line Items]

Net Revenue

$ 7,460

$ 6,972

$ 22,822

$ 20,374

Earnings Before Interest and Taxes

1,052

889

3,177

2,657

Interest expense (income), net

6

9

24

25

Income before income taxes

1,046

880

3,153

2,632

NIKE Brand

Segment Reporting, Revenue Reconciling Item [Line Items]

Net Revenue

6,939

6,554

21,319

19,092

Earnings Before Interest and Taxes

1,171

1,038

3,539

2,990

NIKE Brand |
North America

Segment Reporting, Revenue Reconciling Item [Line Items]

Net Revenue

3,254

3,069

10,008

9,005

Earnings Before Interest and Taxes

830

729

2,585

2,189

NIKE Brand |
Western Europe

Segment Reporting, Revenue Reconciling Item [Line Items]

Net Revenue

1,416

1,292

4,442

3,667

Earnings Before Interest and Taxes

335

275

1,000

663

NIKE Brand |
Central & Eastern Europe

Segment Reporting, Revenue Reconciling Item [Line Items]

Net Revenue

319

356

1,057

1,017

Earnings Before Interest and Taxes

51

79

176

208

NIKE Brand |
Greater China

Segment Reporting, Revenue Reconciling Item [Line Items]

Net Revenue

801

697

2,238

1,900

Earnings Before Interest and Taxes

251

234

727

601

NIKE Brand |
Japan

Segment Reporting, Revenue Reconciling Item [Line Items]

Net Revenue

166

177

525

545

Earnings Before Interest and Taxes

22

21

62

92

NIKE Brand |
Emerging Markets

Segment Reporting, Revenue Reconciling Item [Line Items]

Net Revenue

955

937

2,964

2,869

Earnings Before Interest and Taxes

234

228

626

681

NIKE Brand |
Global Brand Division

Segment Reporting, Revenue Reconciling Item [Line Items]

Net Revenue

28

26

85

89

Earnings Before Interest and Taxes

(552)

(528)

(1,637)

(1,444)

Converse

Segment Reporting, Revenue Reconciling Item [Line Items]

Net Revenue

538

420

1,547

1,274

Earnings Before Interest and Taxes

163

133

437

402

Corporate

Segment Reporting, Revenue Reconciling Item [Line Items]

Net Revenue

(17)

(2)

(44)

8

Earnings Before Interest and Taxes

$ (282)

$ (799)

$ (735)

Operating Segments - Accounts Receivable Net Inventories and Property Plant and Equipment Net by Operating Segments (Detail) (USD $)

In Millions, unless otherwise specified

Feb. 28, 2015

May 31, 2014

Segment Reporting, Asset Reconciling Item [Line Items]

Accounts receivable, net

$ 3,294

$ 3,434

Inventories

4,246

3,947

Property, Plant and Equipment, net

2,862

2,834

NIKE Brand

Segment Reporting, Asset Reconciling Item [Line Items]

Accounts receivable, net

2,991

3,246

Inventories

3,942

3,706

Property, Plant and Equipment, net

2,106

2,122

NIKE Brand |
North America

Segment Reporting, Asset Reconciling Item [Line Items]

Accounts receivable, net

1,546

1,505

Inventories

2,146

1,758

Property, Plant and Equipment, net

598

545

NIKE Brand |
Western Europe

Segment Reporting, Asset Reconciling Item [Line Items]

Accounts receivable, net

391

341

Inventories

681

711

Property, Plant and Equipment, net

411

384

NIKE Brand |
Central & Eastern Europe

Segment Reporting, Asset Reconciling Item [Line Items]

Accounts receivable, net

220

280

Inventories

149

271

Property, Plant and Equipment, net

42

51

NIKE Brand |
Greater China

Segment Reporting, Asset Reconciling Item [Line Items]

Accounts receivable, net

98

68

Inventories

246

221

Property, Plant and Equipment, net

240

232

NIKE Brand |
Japan

Segment Reporting, Asset Reconciling Item [Line Items]

Accounts receivable, net

95

162

Inventories

123

94

Property, Plant and Equipment, net

213

258

NIKE Brand |
Emerging Markets

Segment Reporting, Asset Reconciling Item [Line Items]

Accounts receivable, net

551

819

Inventories

571

633

Property, Plant and Equipment, net

102

115

NIKE Brand |
Global Brand Division

Segment Reporting, Asset Reconciling Item [Line Items]

Accounts receivable, net

90

71

Inventories

26

18

Property, Plant and Equipment, net

500

537

Converse

Segment Reporting, Asset Reconciling Item [Line Items]

Accounts receivable, net

290

171

Inventories

219

261

Property, Plant and Equipment, net

93

70

Corporate

Segment Reporting, Asset Reconciling Item [Line Items]

Accounts receivable, net

13

17

Inventories

85

(20)

Property, Plant and Equipment, net

$ 663

$ 642

Commitments and Contingencies - Additional Information (Detail) (USD $)

In Millions, unless otherwise specified

Feb. 28, 2015

Loss Contingencies [Line Items]

Letters of credit outstanding

$ 158

Cole Haan

Loss Contingencies [Line Items]

Maximum exposure under guarantees

$ 26