XML 39 R28.htm IDEA: XBRL DOCUMENT
v3.23.1

RISK MANAGEMENT AND DERIVATIVES (Tables) | 9 Months Ended
--- | ---
Feb. 28, 2023
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:
| FEBRUARY 28, 2023
| DERIVATIVE ASSETS |  | DERIVATIVE LIABILITIES
(Dollars in millions) | ASSETS AT FAIR VALUE | OTHER CURRENT ASSETS | OTHER LONG-TERM ASSETS |  | LIABILITIES AT FAIR VALUE | ACCRUED LIABILITIES | OTHER LONG-TERM LIABILITIES
Level 2: |  |  |  |  |  |  |
Foreign exchange forwards and options(1) | $ | 651 |  | $ | 551 |  | $ | 100 |  |  | $ | 176 |  | $ | 112 |  | $ | 64 |
Embedded derivatives | 5 |  | 5 |  | — |  |  | 2 |  | 2 |  | — |
TOTAL | $ | 656 |  | $ | 556 |  | $ | 100 |  |  | $ | 178 |  | $ | 114 |  | $ | 64 |
(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 $175 million as of February 28, 2023. As of that date, the Company received $100 million of cash collateral from counterparties related to foreign exchange derivative instruments. No amount of collateral was posted on the derivative liability balance as of February 28, 2023.
| MAY 31, 2022
| 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) | $ | 875 |  | $ | 669 |  | $ | 206 |  |  | $ | 76 |  | $ | 65 |  | $ | 11 |
Embedded derivatives | 5 |  | 5 |  | — |  |  | 1 |  | 1 |  | — |
TOTAL | $ | 880 |  | $ | 674 |  | $ | 206 |  |  | $ | 77 |  | $ | 66 |  | $ | 11 |
(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, 2022. As of that date, the Company received $486 million of cash collateral from counterparties related to foreign exchange derivative instruments. No amount of collateral was posted on the derivative liability balance as of May 31, 2022 The following tables present the fair values of derivative instruments included within the Unaudited Condensed Consolidated Balance Sheets:
| DERIVATIVE ASSETS
| BALANCE SHEET LOCATION | FEBRUARY 28, |  | MAY 31,
(Dollars in millions) | 2023 |  | 2022
Derivatives formally designated as hedging instruments: |  |  |  |
Foreign exchange forwards and options | Prepaid expenses and other current assets | $ | 530 |  |  | $ | 639 |
Foreign exchange forwards and options | Deferred income taxes and other assets | 100 |  |  | 206 |
Total derivatives formally designated as hedging instruments |  | 630 |  |  | 845 |
Derivatives not designated as hedging instruments: |  |  |  |
Foreign exchange forwards and options | Prepaid expenses and other current assets | 21 |  |  | 30 |
Embedded derivatives | Prepaid expenses and other current assets | 5 |  |  | 5 |
Total derivatives not designated as hedging instruments |  | 26 |  |  | 35 |
TOTAL DERIVATIVE ASSETS |  | $ | 656 |  |  | $ | 880 |
| DERIVATIVE LIABILITIES
| BALANCE SHEET LOCATION | FEBRUARY 28, |  | MAY 31,
(Dollars in millions) | 2023 |  | 2022
Derivatives formally designated as hedging instruments: |  |  |  |
Foreign exchange forwards and options | Accrued liabilities | $ | 93 |  |  | $ | 37 |
Foreign exchange forwards and options | Deferred income taxes and other liabilities | 64 |  |  | 11 |
Total derivatives formally designated as hedging instruments |  | 157 |  |  | 48 |
Derivatives not designated as hedging instruments: |  |  |  |
Foreign exchange forwards and options | Accrued liabilities | 19 |  |  | 28 |
Embedded derivatives | Accrued liabilities | 2 |  |  | 1 |
Total derivatives not designated as hedging instruments |  | 21 |  |  | 29 |
TOTAL DERIVATIVE LIABILITIES |  | $ | 178 |  |  | $ | 77 |
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 FEBRUARY 28,
| 2023 |  | 2022
(Dollars in millions) | TOTAL | AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY |  | TOTAL | AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY
Revenues | $ | 12,390 |  | $ | 14 |  |  | $ | 10,871 |  | $ | (22) |
Cost of sales | 7,019 |  | 182 |  |  | 5,804 |  | 17 |
Demand creation expense | 923 |  | (1) |  |  | 854 |  | — |
Other (income) expense, net | (58) |  | 90 |  |  | (94) |  | 45 |
Interest expense (income), net | (7) |  | (2) |  |  | 53 |  | (2) |
| NINE MONTHS ENDED FEBRUARY 28,
| 2023 |  | 2022
(Dollars in millions) | TOTAL | AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY |  | TOTAL | AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY
Revenues | $ | 38,392 |  | $ | 9 |  |  | $ | 34,476 |  | $ | (63) |
Cost of sales | 21,695 |  | 464 |  |  | 18,500 |  | (79) |
Demand creation expense | 2,968 |  | (4) |  |  | 2,789 |  | 1 |
Other (income) expense, net | (283) |  | 297 |  |  | (235) |  | 56 |
Interest expense (income), net | 22 |  | (6) |  |  | 165 |  | (5) |
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 FEBRUARY 28, |  | LOCATION OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME |  | THREE MONTHS ENDED FEBRUARY 28,
2023 | 2022 |  |  | 2023 | 2022
Derivatives designated as cash flow hedges: |  |  |  |  |  |  |
Foreign exchange forwards and options | $ | 30 |  | $ | (37) |  |  | Revenues |  | $ | 14 |  | $ | (22) |
Foreign exchange forwards and options | (141) |  | 4 |  |  | Cost of sales |  | 182 |  | 17 |
Foreign exchange forwards and options | 1 |  | — |  |  | Demand creation expense |  | (1) |  | — |
Foreign exchange forwards and options | (65) |  | 31 |  |  | Other (income) expense, net |  | 90 |  | 45 |
Interest rate swaps(2) | — |  | — |  |  | Interest expense (income), net |  | (2) |  | (2) |
TOTAL DESIGNATED CASH FLOW HEDGES | $ | (175) |  | $ | (2) |  |  |  |  | $ | 283 |  | $ | 38 |
(1)For the three months ended February 28, 2023 and 2022, the amounts recorded in Other (income) expense, net as a result of the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial. (2)Gains and losses associated with terminated interest rate swaps, which were previously designated as cash flow hedges and recorded in Accumulated other comprehensive income (loss), will be released through Interest expense (income), net over the term of the issued debt.
(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)
NINE MONTHS ENDED FEBRUARY 28, |  | LOCATION OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME |  | NINE MONTHS ENDED FEBRUARY 28,
2023 | 2022 |  |  | 2023 | 2022
Derivatives designated as cash flow hedges: |  |  |  |  |  |  |
Foreign exchange forwards and options | $ | 52 |  | $ | (74) |  |  | Revenues |  | $ | 9 |  | $ | (63) |
Foreign exchange forwards and options | 245 |  | 522 |  |  | Cost of sales |  | 464 |  | (79) |
Foreign exchange forwards and options | (2) |  | (3) |  |  | Demand creation expense |  | (4) |  | 1 |
Foreign exchange forwards and options | 181 |  | 304 |  |  | Other (income) expense, net |  | 297 |  | 56 |
Interest rate swaps(2) | — |  | — |  |  | Interest expense (income), net |  | (6) |  | (5) |
TOTAL DESIGNATED CASH FLOW HEDGES | $ | 476 |  | $ | 749 |  |  |  |  | $ | 760 |  | $ | (90) |
(1)For the nine months ended February 28, 2023 and 2022, the amounts recorded in Other (income) expense, net as a result of the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial. (2)Gains and losses associated with terminated interest rate swaps, which were previously designated as cash flow hedges and recorded in Accumulated other comprehensive income (loss), will be released through Interest expense (income), net over the term of the issued debt.
| 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,
(Dollars in millions) | 2023 | 2022 |  | 2023 | 2022
Derivatives not designated as hedging instruments: |  |  |  |  |  |
Foreign exchange forwards and options | $ | (12) |  | $ | (20) |  |  | $ | 32 |  | $ | 12 |  | Other (income) expense, net
Embedded derivatives | (14) |  | — |  |  | 20 |  | (9) |  | 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: | dtr-types: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 https://asc.fasb.org/extlink&oid=125515794&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 https://asc.fasb.org/extlink&oid=125515794&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 https://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types: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 https://asc.fasb.org/extlink&oid=125515794&loc=SL5624163-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration