XML 40 R28.htm IDEA: XBRL DOCUMENT
v3.20.4

Risk Management and Derivatives (Tables) | 6 Months Ended
--- | ---
Nov. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following tables present information about the Company's derivative assets and liabilities measured at fair value on a recurring basis and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement:
| NOVEMBER 30, 2020
| DERIVATIVE ASSETS |  | DERIVATIVE LIABILITIES
(Dollars in millions) | ASSETS AT FAIR VALUE | OTHER CURRENT ASSETS | OTHER LONG-TERM ASSETS |  | LIABILITIES AT FAIR VALUE | ACCRUED LIABILITIES | OTHER LONG-TERM LIABILITIES
Level 2: |  |  |  |  |  |  |
Foreign exchange forwards and options(1) | $ | 30 |  | $ | 27 |  | $ | 3 |  |  | $ | 579 |  | $ | 480 |  | $ | 99 |
Embedded derivatives | — |  | — |  | — |  |  | 5 |  | 5 |  | — |
TOTAL | $ | 30 |  | $ | 27 |  | $ | 3 |  |  | $ | 584 |  | $ | 485 |  | $ | 99 |
(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 $30 million as of November 30, 2020. As of that date, the Company had posted $170 million of cash collateral to various counterparties related to foreign exchange derivative instruments. No amount of collateral was received on the Company's derivative asset balance as of November 30, 2020.
| MAY 31, 2020
| DERIVATIVE ASSETS |  | DERIVATIVE LIABILITIES
(Dollars in millions) | ASSETS AT FAIR VALUE | OTHER CURRENT ASSETS | OTHER LONG-TERM ASSETS |  | LIABILITIES AT FAIR VALUE | ACCRUED LIABILITIES | OTHER LONG-TERM LIABILITIES
Level 2: |  |  |  |  |  |  |
Foreign exchange forwards and options(1) | $ | 94 |  | $ | 91 |  | $ | 3 |  |  | $ | 205 |  | $ | 188 |  | $ | 17 |
Embedded derivatives | 1 |  | 1 |  | — |  |  | 2 |  | 2 |  | — |
TOTAL | $ | 95 |  | $ | 92 |  | $ | 3 |  |  | $ | 207 |  | $ | 190 |  | $ | 17 |
(1)If the foreign exchange derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $76 million as of May 31, 2020. As of that date, no amount of cash collateral had been received or posted on the derivative asset and liability balances related to these foreign exchange derivative instruments. The following tables present the fair values of derivative instruments included within the Unaudited Condensed Consolidated Balance Sheets:
| DERIVATIVE ASSETS
| BALANCE SHEET LOCATION | NOVEMBER 30, |  | MAY 31,
(Dollars in millions) | 2020 |  | 2020
Derivatives formally designated as hedging instruments: |  |  |  |
Foreign exchange forwards and options | Prepaid expenses and other current assets | $ | 11 |  |  | $ | 43 |
Foreign exchange forwards and options | Deferred income taxes and other assets | 2 |  |  | 1 |
Total derivatives formally designated as hedging instruments |  | 13 |  |  | 44 |
Derivatives not designated as hedging instruments: |  |  |  |
Foreign exchange forwards and options | Prepaid expenses and other current assets | 16 |  |  | 48 |
Embedded derivatives | Prepaid expenses and other current assets | — |  |  | 1 |
Foreign exchange forwards and options | Deferred income taxes and other assets | 1 |  |  | 2 |
Total derivatives not designated as hedging instruments |  | 17 |  |  | 51 |
TOTAL DERIVATIVE ASSETS |  | $ | 30 |  |  | $ | 95 |
| DERIVATIVE LIABILITIES
| BALANCE SHEET LOCATION | NOVEMBER 30, |  | MAY 31,
(Dollars in millions) | 2020 |  | 2020
Derivatives formally designated as hedging instruments: |  |  |  |
Foreign exchange forwards and options | Accrued liabilities | $ | 462 |  |  | $ | 173 |
Foreign exchange forwards and options | Deferred income taxes and other liabilities | 99 |  |  | 17 |
Total derivatives formally designated as hedging instruments |  | 561 |  |  | 190 |
Derivatives not designated as hedging instruments: |  |  |  |
Foreign exchange forwards and options | Accrued liabilities | 18 |  |  | 15 |
Embedded derivatives | Accrued liabilities | 5 |  |  | 2 |
Total derivatives not designated as hedging instruments |  | 23 |  |  | 17 |
TOTAL DERIVATIVE LIABILITIES |  | $ | 584 |  |  | $ | 207 |
Schedule Of Derivative Instruments, Gain (Loss) In Statement Of Income | The following tables present the amounts in the Unaudited Condensed Consolidated Statements of Income in which the effects of cash flow hedges are recorded and the effects of cash flow hedge activity on these line items:
| THREE MONTHS ENDED NOVEMBER 30,
| 2020 |  | 2019
(Dollars in millions) | TOTAL | AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY |  | TOTAL | AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY
Revenues | $ | 11,243 |  | $ | 26 |  |  | $ | 10,326 |  | $ | 1 |
Cost of sales | 6,396 |  | 31 |  |  | 5,782 |  | 102 |
Demand creation expense | 729 |  | — |  |  | 881 |  | (3) |
Other (income) expense, net | 54 |  | (13) |  |  | (41) |  | 31 |
Interest expense (income), net | 70 |  | (1) |  |  | 12 |  | (1) |
| SIX MONTHS ENDED NOVEMBER 30,
| 2020 |  | 2019
(Dollars in millions) | TOTAL | AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY |  | TOTAL | AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY
Revenues | $ | 21,837 |  | $ | 40 |  |  | $ | 20,986 |  | $ | 9 |
Cost of sales | 12,249 |  | 145 |  |  | 11,571 |  | 177 |
Demand creation expense | 1,406 |  | 1 |  |  | 1,899 |  | (3) |
Other (income) expense, net | 40 |  | (5) |  |  | (74) |  | 77 |
Interest expense (income), net | 135 |  | (3) |  |  | 27 |  | (3) |
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:
(Dollars in millions) | AMOUNT OF GAIN (LOSS) RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) ON DERIVATIVES(1) |  | AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME(1)
THREE MONTHS ENDED NOVEMBER 30, |  | LOCATION OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME |  | THREE MONTHS ENDED NOVEMBER 30,
2020 | 2019 |  |  | 2020 | 2019
Derivatives designated as cash flow hedges: |  |  |  |  |  |  |
Foreign exchange forwards and options | $ | 6 |  | $ | (83) |  |  | Revenues |  | $ | 26 |  | $ | 1 |
Foreign exchange forwards and options | (69) |  | 37 |  |  | Cost of sales |  | 31 |  | 102 |
Foreign exchange forwards and options | 2 |  | — |  |  | Demand creation expense |  | — |  | (3) |
Foreign exchange forwards and options | 1 |  | 27 |  |  | Other (income) expense, net |  | (13) |  | 31 |
Interest rate swaps(2) | — |  | — |  |  | Interest expense (income), net |  | (1) |  | (1) |
Total designated cash flow hedges | $ | (60) |  | $ | (19) |  |  |  |  | $ | 43 |  | $ | 130 |
(1)For the three months ended November 30, 2020 and 2019, the amounts recorded in Other (income) expense, net as a result of the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial. (2)Gains and losses associated with terminated interest rate swaps, which were previously designated as cash flow hedges and recorded in Accumulated other comprehensive income (loss), will be released through Interest expense (income), net over the term of the issued debt.
(Dollars in millions) | AMOUNT OF GAIN (LOSS) RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) ON DERIVATIVES(1) |  | AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME(1)
SIX MONTHS ENDED NOVEMBER 30, |  | LOCATION OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME |  | SIX MONTHS ENDED NOVEMBER 30,
2020 | 2019 |  |  | 2020 | 2019
Derivatives designated as cash flow hedges: |  |  |  |  |  |  |
Foreign exchange forwards and options | $ | 6 |  | $ | (62) |  |  | Revenues |  | $ | 40 |  | $ | 9 |
Foreign exchange forwards and options | (440) |  | 146 |  |  | Cost of sales |  | 145 |  | 177 |
Foreign exchange forwards and options | 3 |  | — |  |  | Demand creation expense |  | 1 |  | (3) |
Foreign exchange forwards and options | (159) |  | 60 |  |  | Other (income) expense, net |  | (5) |  | 77 |
Interest rate swaps(2) | — |  | — |  |  | Interest expense (income), net |  | (3) |  | (3) |
Total designated cash flow hedges | $ | (590) |  | $ | 144 |  |  |  |  | $ | 178 |  | $ | 257 |
(1)For the six months ended November 30, 2020 and 2019, the amounts recorded in Other (income) expense, net as a result of the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial. (2)Gains and losses associated with terminated interest rate swaps, which were previously designated as cash flow hedges and recorded in Accumulated other comprehensive income (loss), will be released through Interest expense (income), net over the term of the issued debt.
| AMOUNT OF GAIN (LOSS) RECOGNIZED IN INCOME ON DERIVATIVES | LOCATION OF GAIN (LOSS) RECOGNIZED IN INCOME ON DERIVATIVES
| THREE MONTHS ENDED NOVEMBER 30, |  | SIX MONTHS ENDED NOVEMBER 30,
(Dollars in millions) | 2020 | 2019 |  | 2020 | 2019
Derivatives not designated as hedging instruments: |  |  |  |  |  |
Foreign exchange forwards and options | $ | (49) |  | $ | (21) |  |  | $ | (87) |  | $ | (21) |  | Other (income) expense, net
Embedded derivatives | (9) |  | (4) |  |  | (13) |  | (5) |  | Other (income) expense, net

X
- Definition Schedule Of Derivative Instruments, Gain (Loss) In Statement Of Income [Table Text Block] + References No definition available. + Details
Name: | nke_ScheduleOfDerivativeInstrumentsGainLossInStatementOfIncomeTableTextBlock
Namespace Prefix: | nke_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624181-113959 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5618551-113959 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624163-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration