NIKE, INC., 10-K filed on 7/20/2023
Annual Report
v3.23.2
Cover Page - USD ($)
12 Months Ended
May 31, 2023
Jul. 12, 2023
Nov. 30, 2022
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date May 31, 2023    
Current Fiscal Year End Date --05-31    
Document Transition Report false    
Entity File Number 1-10635    
Entity Registrant Name NIKE, Inc.    
Entity Incorporation, State or Country Code OR    
Entity Tax Identification Number 93-0584541    
Entity Address, Address Line One One Bowerman Drive    
Entity Address, City or Town Beaverton    
Entity Address, State or Province OR    
Entity Address, Postal Zip Code 97005-6453    
City Area Code 503    
Local Phone Number 671-6453    
Title of 12(b) Security Class B Common Stock    
Trading Symbol NKE    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 144,299,267,044
Documents Incorporated by Reference Parts of Registrant's Proxy Statement for the Annual Meeting of Shareholders to be held on September 12, 2023, are incorporated by reference into Part III of this report.    
Amendment Flag false    
Document Fiscal Year Focus 2023    
Document Fiscal Period Focus FY    
Entity Central Index Key 0000320187    
Class A Convertible Common Stock      
Document Information [Line Items]      
Entity Public Float     7,831,564,572
Entity Common Stock Shares Outstanding (In Shares)   304,897,252  
Class B Common Stock      
Document Information [Line Items]      
Entity Public Float     $ 136,467,702,472
Entity Common Stock Shares Outstanding (In Shares)   1,225,074,356  
v3.23.2
Audit Information
12 Months Ended
May 31, 2023
Auditor Information [Abstract]  
Auditor Name PricewaterhouseCoopers LLP
Auditor Location Portland, Oregon
Auditor Firm ID 238
v3.23.2
Consolidated Statements of Income - USD ($)
shares in Millions, $ in Millions
12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Income Statement [Abstract]      
Revenues $ 51,217 $ 46,710 $ 44,538
Cost of sales 28,925 25,231 24,576
Gross profit 22,292 21,479 19,962
Demand creation expense 4,060 3,850 3,114
Operating overhead expense 12,317 10,954 9,911
Total selling and administrative expense 16,377 14,804 13,025
Interest expense (income), net (6) 205 262
Other (income) expense, net (280) (181) 14
Income before income taxes 6,201 6,651 6,661
Income tax expense 1,131 605 934
NET INCOME $ 5,070 $ 6,046 $ 5,727
Earnings per common share:      
Basic (in dollars per share) $ 3.27 $ 3.83 $ 3.64
Diluted (in dollars per share) $ 3.23 $ 3.75 $ 3.56
Weighted average common shares outstanding:      
Basic (in shares) 1,551.6 1,578.8 1,573.0
Diluted (in shares) 1,569.8 1,610.8 1,609.4
v3.23.2
Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Statement of Comprehensive Income [Abstract]      
Net income $ 5,070 $ 6,046 $ 5,727
Other comprehensive income (loss), net of tax:      
Change in net foreign currency translation adjustment 267 (522) 496
Change in net gains (losses) on cash flow hedges (348) 1,214 (825)
Change in net gains (losses) on other (6) 6 5
Total other comprehensive income (loss), net of tax (87) 698 (324)
TOTAL COMPREHENSIVE INCOME $ 4,983 $ 6,744 $ 5,403
v3.23.2
Consolidated Balance Sheets - USD ($)
$ in Millions
May 31, 2023
May 31, 2022
Current assets:    
Cash and equivalents $ 7,441 $ 8,574
Short-term investments 3,234 4,423
Accounts receivable, net 4,131 4,667
Inventories 8,454 8,420
Prepaid expenses and other current assets 1,942 2,129
Total current assets 25,202 28,213
Property, plant and equipment, net 5,081 4,791
Operating lease right-of-use assets, net 2,923 2,926
Identifiable intangible assets, net 274 286
Goodwill 281 284
Deferred income taxes and other assets 3,770 3,821
TOTAL ASSETS 37,531 40,321
Current liabilities:    
Current portion of long-term debt 0 500
Notes payable 6 10
Accounts payable 2,862 3,358
Current portion of operating lease liabilities 425 420
Accrued liabilities 5,723 6,220
Income taxes payable 240 222
Total current liabilities 9,256 10,730
Long-term debt 8,927 8,920
Operating lease liabilities 2,786 2,777
Deferred income taxes and other liabilities 2,558 2,613
Commitments and contingencies (Note 16)
Redeemable preferred stock 0 0
Shareholders' equity:    
Capital in excess of stated value 12,412 11,484
Accumulated other comprehensive income (loss) 231 318
Retained earnings (deficit) 1,358 3,476
Total shareholders' equity 14,004 15,281
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 37,531 40,321
Class A Convertible Common Stock    
Shareholders' equity:    
Common stock at stated value 0 0
Class B Common Stock    
Shareholders' equity:    
Common stock at stated value $ 3 $ 3
v3.23.2
Consolidated Balance Sheets (Parenthetical) - shares
shares in Millions
May 31, 2023
May 31, 2022
Class A Convertible Common Stock    
Shareholders' equity:    
Common Stock, shares outstanding (in shares) 305 305
Class B Common Stock    
Shareholders' equity:    
Common Stock, shares outstanding (in shares) 1,227 1,266
v3.23.2
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Cash provided (used) by operations:      
Net income $ 5,070 $ 6,046 $ 5,727
Adjustments to reconcile net income to net cash provided (used) by operations:      
Depreciation 703 717 744
Deferred income taxes (117) (650) (385)
Stock-based compensation 755 638 611
Amortization, impairment and other 156 123 53
Net foreign currency adjustments (213) (26) (138)
Changes in certain working capital components and other assets and liabilities:      
(Increase) decrease in accounts receivable 489 (504) (1,606)
(Increase) decrease in inventories (133) (1,676) 507
(Increase) decrease in prepaid expenses, operating lease right-of-use assets and other current and non-current assets (644) (845) (182)
Increase (decrease) in accounts payable, accrued liabilities, operating lease liabilities and other current and non-current liabilities (225) 1,365 1,326
Cash provided (used) by operations 5,841 5,188 6,657
Cash provided (used) by investing activities:      
Purchases of short-term investments (6,059) (12,913) (9,961)
Maturities of short-term investments 3,356 8,199 4,236
Sales of short-term investments 4,184 3,967 2,449
Additions to property, plant and equipment (969) (758) (695)
Other investing activities 52 (19) 171
Cash provided (used) by investing activities 564 (1,524) (3,800)
Cash provided (used) by financing activities:      
Increase (decrease) in notes payable, net (4) 15 (52)
Repayment of borrowings (500) 0 (197)
Proceeds from exercise of stock options and other stock issuances 651 1,151 1,172
Repurchase of common stock (5,480) (4,014) (608)
Dividends — common and preferred (2,012) (1,837) (1,638)
Other financing activities (102) (151) (136)
Cash provided (used) by financing activities (7,447) (4,836) (1,459)
Effect of exchange rate changes on cash and equivalents (91) (143) 143
Net increase (decrease) in cash and equivalents (1,133) (1,315) 1,541
Cash and equivalents, beginning of year 8,574 9,889 8,348
CASH AND EQUIVALENTS, END OF YEAR 7,441 8,574 9,889
Cash paid during the year for:      
Interest, net of capitalized interest 347 290 293
Income taxes 1,517 1,231 1,177
Non-cash additions to property, plant and equipment 211 160 179
Dividends declared and not paid $ 524 $ 480 $ 438
v3.23.2
Consolidated Statements of Shareholders' Equity - USD ($)
shares in Millions, $ in Millions
Total
CAPITAL IN EXCESS OF STATED VALUE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
RETAINED EARNINGS (DEFICIT)
Class A Common Stock
Class A Common Stock
COMMON STOCK
Class B Common Stock
Class B Common Stock
COMMON STOCK
Beginning balance (in shares) at May. 31, 2020           315   1,243
Beginning balance at May. 31, 2020 $ 8,055 $ 8,299 $ (56) $ (191)   $ 0   $ 3
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Stock options exercised (in shares)               21
Stock options exercised 954 954            
Conversion to Class B Common Stock (in shares)           (10)   10
Repurchase of Class B Common Stock (in shares)               (5)
Repurchase of Class B Common Stock (650) (28)   (622)        
Dividends on common stock and preferred stock (1,692)     (1,692)        
Issuance of shares to employees, net of shares withheld for employee taxes (in shares)               4
Issuance of shares to employees, net of shares withheld for employee taxes 86 129   (43)        
Stock-based compensation 611 611            
Net income 5,727     5,727        
Other comprehensive income (loss) (324)   (324)          
Ending balance (in shares) at May. 31, 2021           305   1,273
Ending balance at May. 31, 2021 12,767 9,965 (380) 3,179   $ 0   $ 3
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Stock options exercised (in shares)               17
Stock options exercised 924 924            
Repurchase of Class B Common Stock (in shares)               (27)
Repurchase of Class B Common Stock (3,994) (186)   (3,808)        
Dividends on common stock and preferred stock (1,886)     (1,886)        
Issuance of shares to employees, net of shares withheld for employee taxes (in shares)               3
Issuance of shares to employees, net of shares withheld for employee taxes 88 143   (55)        
Stock-based compensation 638 638            
Net income 6,046     6,046        
Other comprehensive income (loss) 698   698          
Ending balance (in shares) at May. 31, 2022         305 305 1,266 1,266
Ending balance at May. 31, 2022 15,281 11,484 318 3,476   $ 0   $ 3
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Stock options exercised (in shares)               8
Stock options exercised 421 421            
Repurchase of Class B Common Stock (in shares)               (51)
Repurchase of Class B Common Stock (5,509) (378)   (5,131)        
Dividends on common stock and preferred stock (2,059)     (2,059)        
Issuance of shares to employees, net of shares withheld for employee taxes (in shares)               4
Issuance of shares to employees, net of shares withheld for employee taxes 132 130   2        
Stock-based compensation 755 755            
Net income 5,070     5,070        
Other comprehensive income (loss) (87)   (87)          
Ending balance (in shares) at May. 31, 2023         305 305 1,227 1,227
Ending balance at May. 31, 2023 $ 14,004 $ 12,412 $ 231 $ 1,358   $ 0   $ 3
v3.23.2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares
12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Statement of Stockholders' Equity [Abstract]      
Dividends declared per common share (in dollars per share) $ 1.325 $ 1.190 $ 1.070
Dividends declared per preferred share (in dollars per share) $ 0.10 $ 0.10 $ 0.10
v3.23.2
Summary of Significant Accounting Policies
12 Months Ended
May 31, 2023
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
DESCRIPTION OF BUSINESS
NIKE, Inc. is a worldwide leader in the design, development and worldwide marketing and selling of athletic footwear, apparel, equipment, accessories and services. NIKE, Inc. portfolio brands include the NIKE Brand, Jordan Brand and Converse. The NIKE Brand is focused on performance athletic footwear, apparel, equipment, accessories and services across Men's, Women's and Kids', amplified with sport-inspired lifestyle products carrying the Swoosh trademark, as well as other NIKE Brand trademarks. The Jordan Brand is focused on athletic and casual footwear, apparel and accessories using the Jumpman trademark. Sales and operating results of Jordan Brand products are reported within the respective NIKE Brand geographic operating segments. Converse designs, distributes, licenses and sells casual sneakers, apparel and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron and Jack Purcell trademarks. In some markets outside the U.S., these trademarks are licensed to third parties who design, distribute, market and sell similar products. Operating results of the Converse brand are reported on a stand-alone basis.
BASIS OF CONSOLIDATION
The Consolidated Financial Statements include the accounts of NIKE, Inc. and its subsidiaries (the "Company" or "NIKE"). All significant intercompany transactions and balances have been eliminated.
REVENUE RECOGNITION
Revenue transactions associated with the sale of NIKE Brand footwear, apparel and equipment, as well as Converse products, comprise a single performance obligation, which consists of the sale of products to customers either through wholesale or direct to consumer channels. The Company satisfies the performance obligation and records revenues when transfer of control to the customer has occurred, based on the terms of sale. A customer is considered to have control once they are able to direct the use and receive substantially all of the benefits of the product.
Control is transferred to wholesale customers upon shipment or upon receipt depending on the country of the sale and the agreement with the customer. Control transfers to retail store customers at the time of sale and to substantially all digital commerce customers upon shipment. The transaction price is determined based upon the invoiced sales price, less anticipated sales returns, discounts and miscellaneous claims from customers. Payment terms for wholesale transactions depend on the country of sale or agreement with the customer and payment is generally required within 90 days or less of shipment to or receipt by the wholesale customer. Payment is due at the time of sale for retail store and digital commerce transactions.
Consideration for trademark licensing contracts is earned through sales-based or usage-based royalty arrangements, and the associated revenues are recognized over the license period.
Taxes assessed by governmental authorities that are both imposed on and concurrent with a specific revenue-producing transaction, and are collected by the Company from a customer, are excluded from Revenues and Cost of sales in the Consolidated Statements of Income. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as fulfillment costs and are included in Cost of sales when the related revenues are recognized.
SALES-RELATED RESERVES
Consideration promised in the Company's contracts with customers is variable due to anticipated reductions, such as sales returns, discounts and miscellaneous claims from customers. The Company estimates the most likely amount it will be entitled to receive and records an anticipated reduction against Revenues, with an offsetting increase to Accrued liabilities at the time revenues are recognized. The estimated cost of inventory for product returns is recorded in Prepaid expenses and other current assets on the Consolidated Balance Sheets.
The provision for anticipated sales returns consists of both contractual return rights and discretionary authorized returns. Provisions for post-invoice sales discounts consist of both contractual programs and discretionary discounts that are expected to be granted at a later date.
Estimates of discretionary authorized returns, discounts and claims are based on (1) historical rates, (2) specific identification of outstanding returns not yet received from customers and outstanding discounts and claims and (3) estimated returns, discounts and claims expected but not yet finalized with customers. Actual returns, discounts and claims in any future period are inherently uncertain and thus may differ from estimates recorded. If actual or expected future returns, discounts or claims are significantly greater or lower than the reserves established, a reduction or increase to net Revenues is recorded in the period in which such determination is made.
COST OF SALES
Cost of sales consists primarily of inventory costs, as well as warehousing costs (including the cost of warehouse labor), third-party royalties, certain foreign currency hedge gains and losses and product design costs. Shipping and handling costs are expensed as incurred and included in Cost of sales.
DEMAND CREATION EXPENSE
Demand creation expense consists of advertising and promotion costs, including costs of endorsement contracts, complimentary products, television, digital and print advertising as well as media costs, brand events and retail brand presentation. Advertising production costs are expensed the first time an advertisement is run. Advertising media costs are expensed when the advertisement appears. Costs related to brand events are expensed when the event occurs. Costs related to retail brand presentation are expensed when the presentation is complete and delivered.
A significant amount of the Company's promotional expenses result from payments under endorsement contracts. In general, endorsement payments are expensed on a straight-line basis over the term of the contract. However, certain contracts contain elements that may be accounted for differently based upon the facts and circumstances of each individual contract. Prepayments made under contracts are included in Prepaid expenses and other current assets or Deferred income taxes and other assets depending on the period to which the prepayment applies.
Certain contracts provide for contingent payments to endorsers based upon specific achievements in their sport (e.g., winning a championship). The Company records Demand creation expense for these amounts when the endorser achieves the specific goal.
Certain contracts provide for variable payments based upon endorsers maintaining a level of performance in their sport over an extended period of time (e.g., maintaining a specified ranking in a sport for a year). When the Company determines payments are probable, the amounts are reported in Demand creation expense ratably over the contract period based on the Company's best estimate of the endorser's performance. In these instances, to the extent actual payments to the endorser differ from the Company's estimate due to changes in the endorser's performance, adjustments to Demand creation expense may be recorded in a future period.
Certain contracts provide for royalty payments to endorsers based upon a predetermined percent of sales of particular products, which the Company records in Cost of sales as the related sales occur. For contracts containing minimum guaranteed royalty payments, the Company records the amount of any guaranteed payment in excess of that earned through sales of product within Demand creation expense.
Through cooperative advertising programs, the Company reimburses its wholesale customers for certain costs of advertising the Company's products. To the extent the Company receives a distinct good or service in exchange for consideration paid to the customer that does not exceed the fair value of that good or service, the amounts reimbursed are recorded in Demand creation expense.
Total Demand creation expense was $4,060 million, $3,850 million and $3,114 million for the years ended May 31, 2023, 2022 and 2021, respectively. Prepaid advertising and promotion expenses totaled $755 million and $773 million at May 31, 2023 and 2022, respectively, of which $372 million and $329 million, respectively, were recorded in Prepaid expenses and other current assets, and $383 million and $444 million, respectively, were recorded in Deferred income taxes and other assets, depending on the period to which the prepayment applied.
OPERATING OVERHEAD EXPENSE
Operating overhead expense consists primarily of wage and benefit-related expenses, research and development costs, bad debt expense as well as other administrative expenses such as rent, depreciation and amortization, professional services, certain technology investments, meetings and travel.
CASH AND EQUIVALENTS
Cash and equivalents represent cash and short-term, highly liquid investments, that are both readily convertible to known amounts of cash and so near their maturity they present insignificant risk of changes in value because of changes in interest rates, with maturities three months or less at the date of purchase.
SHORT-TERM INVESTMENTS
Short-term investments consist of highly liquid investments with maturities over three months at the date of purchase. At May 31, 2023 and 2022, Short-term investments consisted of available-for-sale debt securities, which are recorded at fair value with unrealized gains and losses reported, net of tax, in Accumulated other comprehensive income (loss), unless unrealized losses are determined to be unrecoverable. Realized gains and losses on the sale of securities are determined by specific identification. The Company considers all available-for-sale debt securities, including those with maturity dates beyond 12 months, as available to support current operational liquidity needs and, therefore, classifies all securities with maturity dates beyond three months at the date of purchase as current assets within Short-term investments on the Consolidated Balance Sheets.
Refer to Note 4 — Fair Value Measurements for more information on the Company's Short-term investments.
ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS RECEIVABLE
Accounts receivable, net consist primarily of amounts due from customers. The Company makes ongoing estimates relating to the collectability of its accounts receivable and maintains an allowance for expected losses resulting from the inability of its customers to make required payments. In addition to judgments about the creditworthiness of significant customers based on ongoing credit evaluations, the Company considers historical levels of credit losses, as well as macroeconomic and industry trends to determine the amount of the allowance. The allowance for uncollectible accounts receivable was $35 million and $34 million as of May 31, 2023 and 2022, respectively.
INVENTORY VALUATION
Inventories, substantially all of which are finished goods, are stated at lower of cost and net realizable value and valued on either an average or a specific identification cost basis. In some instances, the Company ships products directly from its suppliers to the customer, with the related inventory and cost of sales recognized on a specific identification basis. Inventory costs primarily consist of product cost from the Company's suppliers, as well as inbound freight, import duties, taxes, insurance, logistics and other handling fees.
PROPERTY, PLANT AND EQUIPMENT AND DEPRECIATION
Property, plant and equipment are recorded at cost. Depreciation is determined on a straight-line basis for land improvements, buildings and leasehold improvements over 2 to 40 years and for machinery and equipment over 2 to 15 years.
Depreciation and amortization of assets used in manufacturing, warehousing and product distribution are recorded in Cost of sales. Depreciation and amortization of all other assets are recorded in Operating overhead expense.
SOFTWARE DEVELOPMENT COSTS
Expenditures for major software purchases and software developed for internal use are capitalized and amortized over 2 to 12 years on a straight-line basis. The Company's policy provides for the capitalization of external direct costs associated with developing or obtaining internal use computer software. The Company also capitalizes certain payroll and payroll-related costs for employees who are directly associated with internal use computer software projects. The amount of capitalizable payroll costs with respect to these employees is limited to the time directly spent on such projects. Costs associated with preliminary project stage activities, training, maintenance and all other post-implementation stage activities are expensed as incurred.
Development costs of computer software to be sold, leased or otherwise marketed as an integral part of a product are subject to capitalization beginning when a product's technological feasibility has been established and ending when a product is available for general release to customers. In most instances, the Company's products are released soon after technological feasibility has been established; therefore, software development costs incurred subsequent to achievement of technological feasibility are usually not significant, and generally, most software development costs have been expensed as incurred.
IMPAIRMENT OF LONG-LIVED ASSETS
The Company reviews the carrying value of long-lived assets or asset groups to be used in operations whenever events or changes in circumstances indicate the carrying amount of the assets might not be recoverable. Factors that would necessitate an impairment assessment include a significant adverse change in the extent or manner in which an asset is used, a significant adverse change in legal factors or the business climate that could affect the value of the asset or a significant decline in the observable market value of an asset, among others. If such facts indicate a potential impairment, the Company would assess the recoverability of an asset group by determining if the carrying value of the asset group exceeds the sum of the projected undiscounted cash flows expected to result from the use and eventual disposition of the assets over the remaining economic life of the primary asset in the asset group. If the recoverability test indicates that the carrying value of the asset group is not recoverable, the Company will estimate the fair value of the asset group using appropriate valuation methodologies, which would typically include an estimate of discounted cash flows. Any impairment would be measured as the difference between the asset group's carrying amount and its estimated fair value.
GOODWILL AND INDEFINITE-LIVED INTANGIBLE ASSETS
The Company performs annual impairment tests on goodwill and intangible assets with indefinite lives in the fourth quarter of each fiscal year or when events occur or circumstances change that would, more likely than not, reduce the fair value of a reporting unit or an intangible asset with an indefinite life below its carrying value.
For purposes of testing goodwill for impairment, the Company allocates goodwill across its reporting units, which are considered the Company's operating segments. For both goodwill and indefinite-lived intangible assets, which primarily consist of acquired trade names and trademarks, the Company may first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit or an intangible asset with an indefinite life is less than its carrying amount. If, after assessing the totality of events and circumstances, the Company determines it is more likely than not that the fair value of a reporting unit or indefinite-lived intangible asset is greater than its carrying amount, an impairment test is unnecessary.
If an impairment test is necessary, the Company will estimate the fair value of the related reporting unit or indefinite-lived intangible asset. If the carrying value of a reporting unit or indefinite-lived intangible asset exceeds its fair value, the goodwill of that reporting unit or indefinite-lived intangible asset is determined to be impaired and the Company will record an impairment charge equal to the excess of the carrying value over the related fair value.
There were no accumulated impairment losses as of May 31, 2023 and 2022. Additionally, the impact to Goodwill as a result of acquisitions and divestitures during fiscal 2023 and 2022, was not material.
OPERATING LEASES
The Company primarily leases retail store space, certain distribution and warehouse facilities, office space, equipment and other non-real estate assets. The Company determines if an arrangement is a lease at inception and begins recording lease activity at the commencement date, which is generally the date in which the Company takes possession of or controls the physical use of the asset. Lease components are not separated from non-lease components for real estate leases within the Company's lease portfolio. Right-of-use ("ROU") assets and lease liabilities are recognized based on the present value of lease payments over the lease term with lease expense recognized on a straight-line basis. The Company's incremental borrowing rate is used to determine the present value of future lease payments unless the implicit rate is readily determinable.
Lease agreements may contain rent escalation clauses, renewal or termination options, rent holidays or certain landlord incentives, including tenant improvement allowances. ROU assets include amounts for scheduled rent increases and are reduced by the amount of lease incentives. The lease term includes the non-cancelable period of the lease and options to extend or terminate the lease when it is reasonably certain the Company will exercise those options. The Company does not record leases with an initial term of 12 months or less on the Consolidated Balance Sheets and recognizes related lease payments in the Consolidated Statements of Income on a straight-line basis over the lease term. Certain lease agreements include variable lease payments, which are based on a percent of retail sales over specified levels or adjust periodically for inflation as a result of changes in a published index, primarily the Consumer Price Index, and are expensed as incurred.
FAIR VALUE MEASUREMENTS
The Company measures certain financial assets and liabilities at fair value on a recurring basis, including derivatives, equity securities and available-for-sale debt securities. Fair value is the price the Company would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. The Company uses a three-level hierarchy that prioritizes fair value measurements based on the types of inputs used, as follows:
Level 1: Quoted prices in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.
Level 3: Unobservable inputs with little or no market data available, which require the reporting entity to develop its own assumptions.
The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Financial assets and liabilities are classified in their entirety based on the most conservative level of input that is significant to the fair value measurement.
Pricing vendors are utilized for a majority of Level 1 and Level 2 investments. These vendors either provide a quoted market price in an active market or use observable inputs without applying significant adjustments in their pricing. Observable inputs include broker quotes, interest rates and yield curves observable at commonly quoted intervals, volatilities and credit risks. The fair value of derivative contracts is determined using observable market inputs such as the daily market foreign currency rates, forward pricing curves, currency volatilities, currency correlations and interest rates and considers nonperformance risk of the Company and its counterparties.
The Company's fair value measurement process includes comparing fair values to another independent pricing vendor to ensure appropriate fair values are recorded.
Refer to Note 4 — Fair Value Measurements for additional information.
FOREIGN CURRENCY TRANSLATION AND FOREIGN CURRENCY TRANSACTIONS
Adjustments resulting from translating foreign functional currency financial statements into U.S. Dollars are included in the foreign currency translation adjustment, a component of Accumulated other comprehensive income (loss).
The Company's global subsidiaries have various monetary assets and liabilities, primarily receivables and payables, which are denominated in currencies other than their functional currency. These balance sheet items are subject to remeasurement, the impact of which is recorded in Other (income) expense, net, within the Consolidated Statements of Income.
ACCOUNTING FOR DERIVATIVES AND HEDGING ACTIVITIES
The Company uses derivative financial instruments to reduce its exposure to changes in foreign currency exchange rates and interest rates. All derivatives are recorded at fair value on the Consolidated Balance Sheets and changes in the fair value of derivative financial instruments are either recognized in Accumulated other comprehensive income (loss), Long-term debt or Net income depending on the nature of the underlying exposure, whether the derivative is formally designated as a hedge and, if designated, the extent to which the hedge is effective. The Company classifies the cash flows at settlement from derivatives in the same category as the cash flows from the related hedged items. For undesignated hedges and designated cash flow hedges, this is primarily within the Cash provided by operations component of the Consolidated Statements of Cash Flows. For designated net investment hedges, this is within the Cash provided by investing activities component of the Consolidated Statements of Cash Flows. For the Company's fair value hedges, which are interest rate swaps used to mitigate the change in fair value of its fixed-rate debt attributable to changes in interest rates, the related cash flows from periodic interest payments are reflected within the Cash provided by operations component of the Consolidated Statements of Cash Flows.
Refer to Note 12 — Risk Management and Derivatives for additional information on the Company's risk management program and derivatives.
STOCK-BASED COMPENSATION
The Company accounts for stock-based compensation by estimating the fair value, net of estimated forfeitures, of equity awards and recognizing the related expense as Cost of sales or Operating overhead expense, as applicable, in the Consolidated Statements of Income on a straight-line basis over the vesting period. Substantially all awards vest ratably over four years of continued employment, with stock options expiring 10 years from the date of grant. Performance-based restricted stock units vest based on the Company's achievement of certain performance criteria throughout the three-year performance period and continued employment through the vesting date. The fair value of options, stock appreciation rights and employees' purchase rights under the employee stock purchase plans ("ESPPs") is determined using the Black-Scholes option pricing model. The fair value of restricted stock and time-vesting restricted stock units is established by the market price on the date of grant. The fair value of performance-based restricted stock units is estimated as of the grant date using a Monte Carlo simulation.
Refer to Note 9 — Common Stock and Stock-Based Compensation for additional information on the Company's stock-based compensation programs.
INCOME TAXES
The Company accounts for income taxes using the asset and liability method. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. The Company records a valuation allowance to reduce deferred tax assets to the amount management believes is more likely than not to be realized. Realization of deferred tax assets is dependent on future taxable earnings and is therefore uncertain. At least quarterly, the Company assesses taxable income in prior carryback periods, the scheduled reversal of deferred tax liabilities, projected future taxable income and available tax planning strategies. The Company uses forecasts of taxable income and considers foreign tax credit utilization in making this assessment of realization, which are inherently uncertain and can result in significant variation between estimated and actual results. To the extent the Company believes that recovery is not likely, a valuation allowance is established against the net deferred tax asset, which increases the Company's income tax expense in the period when such determination is made.
The Company recognizes a tax benefit from uncertain tax positions in the financial statements only when it is more likely than not the position will be sustained upon examination by relevant tax authorities. The Company recognizes interest and penalties related to income tax matters in Income tax expense.
Refer to Note 7 — Income Taxes for further discussion.
EARNINGS PER SHARE
Basic earnings per common share is calculated by dividing Net income by the weighted average number of common shares outstanding during the year. Diluted earnings per common share is calculated by adjusting weighted average outstanding shares, assuming conversion of all potentially dilutive stock options and awards.
Refer to Note 10 — Earnings Per Share for further discussion.
MANAGEMENT ESTIMATES
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates, including estimates relating to assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Additionally, the macroeconomic environment could remain volatile as the risk exists that worsening macroeconomic conditions could have a material, adverse impact on future revenue growth as well as overall profitability.
RECENTLY ISSUED ACCOUNTING STANDARDS
In September 2022, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") ASU 2022-04, Liabilities — Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations, which enhances transparency surrounding the use of supplier finance programs. The new guidance requires qualitative and quantitative disclosure sufficient to enable users of the financial statements to understand the nature, activity during the period, changes from period to period and potential magnitude of such programs. The amendments are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal periods, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. The Company will adopt the required guidance in the first quarter of fiscal 2024 and is currently evaluating the ASU to determine its impact on the Company's disclosures
v3.23.2
Property, Plant and Equipment
12 Months Ended
May 31, 2023
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
NOTE 2 — PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment, net included the following:
MAY 31,
(Dollars in millions)
20232022
Land and improvements$326 $330 
Buildings3,293 3,170 
Machinery and equipment3,083 2,870 
Internal-use software1,612 1,616 
Leasehold improvements1,876 1,712 
Construction in process525 399 
Total property, plant and equipment, gross10,715 10,097 
Less accumulated depreciation5,634 5,306 
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET$5,081 $4,791 
Capitalized interest was not material for the fiscal years ended May 31, 2023, 2022 and 2021.
v3.23.2
Accrued Liabilities
12 Months Ended
May 31, 2023
Accrued Liabilities, Current [Abstract]  
Accrued Liabilities
NOTE 3 — ACCRUED LIABILITIES
Accrued liabilities included the following:
MAY 31,
(Dollars in millions)
20232022
Compensation and benefits, excluding taxes$1,737 $1,297 
Sales-related reserves 994 1,015 
Endorsement compensation552 496 
Dividends payable529 485 
Allowance for expected loss on sale(1)
— 397 
Other1,911 2,530 
Total Accrued Liabilities$5,723 $6,220 
(1)Refer to Note 18 — Acquisitions and Divestitures for additional information.
v3.23.2
Fair Value Measurements
12 Months Ended
May 31, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements
NOTE 4 — FAIR VALUE MEASUREMENTS
The following tables present information about the Company's financial assets measured at fair value on a recurring basis as of May 31, 2023 and 2022, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement. Refer to Note 1 — Summary of Significant Accounting Policies for additional detail regarding the Company's fair value measurement methodology.
MAY 31, 2023
(Dollars in millions)
ASSETS AT FAIR VALUECASH AND EQUIVALENTSSHORT-TERM INVESTMENTS
Cash$1,767 $1,767 $— 
Level 1:
U.S. Treasury securities2,655 — 2,655 
Level 2:
Commercial paper and bonds543 15 528 
Money market funds5,157 5,157 — 
Time deposits507 502 
U.S. Agency securities46 — 46 
Total Level 26,253 5,674 579 
TOTAL$10,675 $7,441 $3,234 
MAY 31, 2022
(Dollars in millions)
ASSETS AT FAIR VALUECASH AND EQUIVALENTSSHORT-TERM INVESTMENTS
Cash$839 $839 $— 
Level 1:
U.S. Treasury securities3,801 3,793 
Level 2:
Commercial paper and bonds660 37 623 
Money market funds6,458 6,458 — 
Time deposits1,237 1,232 
U.S. Agency securities— 
Total Level 28,357 7,727 630 
TOTAL$12,997 $8,574 $4,423 
As of May 31, 2023, the Company held $2,563 million of available-for-sale debt securities with maturity dates within one year and $671 million with maturity dates over one year and less than five years in Short-term investments on the Consolidated Balance Sheets. The fair value of the Company's available-for-sale debt securities approximates their amortized cost.
Included in Interest expense (income), net was interest income related to the Company's investment portfolio of $297 million, $94 million and $34 million for the years ended May 31, 2023, 2022 and 2021, respectively.
The Company records the assets and liabilities of its derivative financial instruments on a gross basis on the Consolidated Balance Sheets. The Company's derivative financial instruments are subject to master netting arrangements that allow for the offset of assets and liabilities in the event of default or early termination of the contract. Any amounts of cash collateral received related to these instruments associated with the Company's credit-related contingent features are recorded in Cash and equivalents and Accrued liabilities, the latter of which would further offset against the Company's derivative asset balance. Any amounts of cash collateral posted related to these instruments associated with the Company's credit-related contingent features are recorded in Prepaid expenses and other current assets, which would further offset against the Company's derivative liability balance. Cash collateral received or posted related to the Company's credit-related contingent features is presented in the Cash provided by operations component of the Consolidated Statements of Cash Flows. The Company does not recognize amounts of non-cash collateral received, such as securities, on the Consolidated Balance Sheets. For further information related to credit risk, refer to Note 12 — Risk Management and Derivatives.
The following tables present information about the Company's derivative assets and liabilities measured at fair value on a recurring basis and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement:
MAY 31, 2023
DERIVATIVE ASSETSDERIVATIVE LIABILITIES
(Dollars in millions)ASSETS AT FAIR VALUEOTHER CURRENT ASSETSOTHER LONG-TERM ASSETSLIABILITIES AT FAIR VALUEACCRUED LIABILITIESOTHER LONG-TERM LIABILITIES
Level 2:
Foreign exchange forwards and options(1)
$557 $493 $64 $180 $128 $52 
(1)If the foreign exchange derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $178 million as of May 31, 2023. As of that date, the Company received $36 million of cash collateral from various counterparties related to foreign exchange derivative instruments. No amount of collateral was posted on the derivative liability balance as of May 31, 2023.
MAY 31, 2022
DERIVATIVE ASSETSDERIVATIVE LIABILITIES
(Dollars in millions)
ASSETS AT FAIR VALUEOTHER CURRENT ASSETSOTHER LONG-TERM ASSETSLIABILITIES AT FAIR VALUEACCRUED LIABILITIESOTHER LONG-TERM LIABILITIES
Level 2:
Foreign exchange forwards and options and embedded derivatives(1)
$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 had received $486 million of cash collateral from various counterparties related to foreign exchange derivative instruments. No amount of collateral was posted on the Company's derivative liability balance as of May 31, 2022.
For additional information related to the Company's derivative financial instruments, refer to Note 12 — Risk Management and Derivatives. For fair value information regarding Notes payable and Long-term debt, refer to Note 5 — Short-Term Borrowings and Credit Lines and Note 6 — Long-Term Debt, respectively.
The carrying amounts of other current financial assets and other current financial liabilities approximate fair value.
NON-RECURRING FAIR VALUE MEASUREMENTS
As further discussed in Note 18 — Acquisitions and Divestitures, the Company met the criteria to recognize the related assets and liabilities of its Argentina, Chile and Uruguay entities as held-for-sale as of May 31, 2022. This required the Company to remeasure the disposal groups at fair value, less costs to sell, which is considered a Level 3 fair value measurement and was based on each transaction's estimated consideration.
All other assets or liabilities required to be measured at fair value on a non-recurring basis as of May 31, 2023 and 2022 were immaterial.
v3.23.2
Short-Term Borrowings and Credit Lines
12 Months Ended
May 31, 2023
Debt Disclosure [Abstract]  
Short-Term Borrowings and Credit Lines
NOTE 5 — SHORT-TERM BORROWINGS AND CREDIT LINES
The carrying amounts reflected in the Consolidated Balance Sheets for Notes payable approximate fair value.
On March 11, 2022, the Company entered into a five-year committed credit facility agreement with a syndicate of banks which provides for up to $2 billion of borrowings, with the option to increase borrowings up to $3 billion in total with lender approval. The facility matures on March 11, 2027, with options to extend the maturity date up to an additional two years. This facility replaces the prior $2 billion five-year credit facility agreement entered into on August 16, 2019, which would have matured on August 16, 2024. Based on the Company's current long-term senior unsecured debt ratings of AA- and A1 from Standard and Poor's Corporation and Moody's Investor Services, respectively, the interest rate charged on any outstanding borrowings would be the prevailing Term SOFR for the applicable interest period plus 0.60%. The facility fee is 0.04% of the total undrawn commitment.
On March 10, 2023, the Company entered into a 364-day committed credit facility agreement with a syndicate of banks, which provides for up to $1 billion of borrowings, with an option to increase borrowings up to $1.5 billion in total with lender approval. The facility matures on March 8, 2024, with an option to extend the maturity date an additional 364 days. This facility replaces the prior $1 billion 364-day credit facility agreement entered into on March 11, 2022, which matured on March 10, 2023. Based on the Company's current long-term senior unsecured debt ratings of AA- and A1 from Standard and Poor's Corporation and Moody's Investor Services, respectively, the interest rate charged on any outstanding borrowings would be the prevailing Term Secured Overnight Financing Rate ("Term SOFR") for the applicable interest period plus 0.60%. The facility fee is 0.02% of the total undrawn commitment.
As of and for the periods ended May 31, 2023 and 2022, no amounts were outstanding under any of the Company's committed credit facilities.
v3.23.2
Long-Term Debt
12 Months Ended
May 31, 2023
Debt Disclosure [Abstract]  
Long-Term Debt
NOTE 6 — LONG-TERM DEBT
Long-term debt, net of unamortized premiums, discounts and debt issuance costs, comprises the following: 
BOOK VALUE OUTSTANDING
AS OF MAY 31,
Scheduled Maturity (Dollars in millions)
ORIGINAL PRINCIPALINTEREST RATEINTEREST PAYMENTS20232022
Corporate Term Debt:(1)(2)
May 1, 2023$500 2.25 %Semi-Annually$— $500 
March 27, 20251,000 2.40 %Semi-Annually998 996 
November 1, 20261,000 2.38 %Semi-Annually997 997 
March 27, 20271,000 2.75 %Semi-Annually997 996 
March 27, 20301,500 2.85 %Semi-Annually1,492 1,491 
March 27, 20401,000 3.25 %Semi-Annually987 986 
May 1, 2043500 3.63 %Semi-Annually496 496 
November 1, 20451,000 3.88 %Semi-Annually986 985 
November 1, 2046500 3.38 %Semi-Annually492 492 
March 27, 20501,500 3.38 %Semi-Annually1,482 1,481 
Total8,927 9,420 
Less Current Portion of Long-Term Debt— 500 
TOTAL LONG-TERM DEBT$8,927 $8,920 
(1)These senior unsecured obligations rank equally with the Company's other unsecured and unsubordinated indebtedness.
(2)The bonds are redeemable at the Company's option at a price equal to the greater of (i) 100% of the aggregate principal amount of the notes to be redeemed or (ii) the sum of the present values of the remaining scheduled payments, plus in each case, accrued and unpaid interest. However, the bonds also feature a par call provision, which allows for the bonds to be redeemed at a price equal to 100% of the aggregate principal amount of the notes being redeemed, plus accrued and unpaid interest on or after the Par Call Date, as defined in the respective notes.
The scheduled maturity of Long-term debt in each of the years ending May 31, 2024 through 2028, are $0 million, $1,000 million, $0 million, $2,000 million and $0 million, respectively, at face value.
The Company's Long-term debt is recorded at adjusted cost, net of unamortized premiums, discounts and debt issuance costs. The fair value of long-term debt is estimated based upon quoted prices for similar instruments or quoted prices for identical instruments in inactive markets (Level 2). The fair value of the Company's Long-term debt, including the current portion, was approximately $7,889 million and $8,933 million as of May 31, 2023 and 2022, respectively.
v3.23.2
Income Taxes
12 Months Ended
May 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes
NOTE 7 — INCOME TAXES
Income before income taxes is as follows:
YEAR ENDED MAY 31,
(Dollars in millions)
202320222021
Income before income taxes:
United States$4,663 $6,020 $5,723 
Foreign1,538 631 938 
TOTAL INCOME BEFORE INCOME TAXES$6,201 $6,651 $6,661 
The provision for income taxes is as follows:
YEAR ENDED MAY 31,
(Dollars in millions)
202320222021
Current:
United States
Federal$430 $231 $328 
State184 98 134 
Foreign634 926 857 
Total Current1,248 1,255 1,319 
Deferred:
United States
Federal(162)(522)(371)
State(25)(16)(34)
Foreign70 (112)20 
Total Deferred(117)(650)(385)
TOTAL INCOME TAX EXPENSE$1,131 $605 $934 
A reconciliation from the U.S. statutory federal income tax rate to the effective income tax rate is as follows:
 YEAR ENDED MAY 31,
202320222021
Federal income tax rate21.0 %21.0 %21.0 %
State taxes, net of federal benefit1.5 %1.4 %1.3 %
Foreign earnings1.7 %-1.8 %0.2 %
Subpart F deferred tax benefit0.0 %-4.7 %0.0 %
Foreign-derived intangible income benefit-6.1 %-4.1 %-3.7 %
Excess tax benefits from stock-based compensation-1.1 %-4.9 %-4.5 %
Income tax audits and contingency reserves1.0 %1.5 %1.5 %
U.S. research and development tax credit-1.2 %-1.0 %-0.9 %
Other, net1.4 %1.7 %-0.9 %
EFFECTIVE INCOME TAX RATE18.2 %9.1 %14.0 %
On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (the "Tax Act"), which significantly changed U.S. tax law and included a provision to tax global intangible low-taxed income ("GILTI") of foreign subsidiaries. The Company recognizes taxes due under the GILTI provision as a current period expense.
The effective tax rate for the fiscal year ended May 31, 2023 was higher than the effective tax rate for the fiscal year ended May 31, 2022. The increase was primarily due to decreased benefits from stock-based compensation and the prior year recognition of a non-cash, one-time benefit related to the onshoring of the Company's non-U.S. intangible property. During the fourth quarter of fiscal 2022, the Company onshored certain non-U.S. intangible property ownership rights and implemented changes in the Company's legal entity structure. The tax restructuring increases the possibility that foreign earnings in future periods will be subject to tax in the U.S. due to Subpart F of the Internal Revenue Code. The Company recognized a deferred tax asset and corresponding non-cash deferred income tax benefit of 4.7%, to establish the deferred tax deduction that is expected to reduce taxable income in future periods.
The effective tax rate for the fiscal year ended May 31, 2022 was lower than the effective tax rate for the fiscal year ended May 31, 2021. The decrease was primarily due to a shift in the Company's earnings mix and recognition of a non-cash, one-time benefit related to the onshoring of the Company's non-U.S. intangible property.
Deferred tax assets and liabilities comprise the following as of: 
MAY 31,
(Dollars in millions)
20232022
Deferred tax assets:
Inventories(1)
$79 $136 
Sales return reserves(1)
89 109 
Deferred compensation(1)
321 313 
Stock-based compensation261 195 
Reserves and accrued liabilities(1)
144 145 
Operating lease liabilities511 508 
Intangibles255 275 
Capitalized research and development expenditures 548 353 
Net operating loss carry-forwards15 
Subpart F deferred tax374 313 
Foreign tax credit carry-forward— 103 
Other(1)
183 148 
Total deferred tax assets2,780 2,606 
Valuation allowance(22)(19)
Total deferred tax assets after valuation allowance2,758 2,587 
Deferred tax liabilities:
Foreign withholding tax on undistributed earnings of foreign subsidiaries(186)(146)
Property, plant and equipment(1)
(276)(247)
Right-of-use assets(441)(437)
Other(1)
(56)(92)
Total deferred tax liabilities(959)(922)
NET DEFERRED TAX ASSET (2)
$1,799 $1,665 
(1)The above amounts exclude deferred taxes held-for-sale as of May 31, 2022. See Note 18 — Acquisitions and Divestitures for additional information.
(2)Of the total $1,799 million net deferred tax asset for the period ended May 31, 2023, $2,026 million was included within Deferred income taxes and other assets and $(227) million was included within Deferred income taxes and other liabilities on the Consolidated Balance Sheets. Of the total $1,665 million net deferred tax asset for the period ended May 31, 2022, $1,891 million was included within Deferred income taxes and other assets and $(226) million was included within Deferred income taxes and other liabilities on the Consolidated Balance Sheets.

The following is a reconciliation of the changes in the gross balance of unrecognized tax benefits as of:
 MAY 31,
(Dollars in millions)
202320222021
Unrecognized tax benefits, beginning of the period$848 $896 $771 
Gross increases related to prior period tax positions95 71 77 
Gross decreases related to prior period tax positions(17)(145)(22)
Gross increases related to current period tax positions50 62 59 
Settlements(18)(17)(5)
Lapse of statute of limitations(7)(10)(6)
Changes due to currency translation(15)(9)22 
UNRECOGNIZED TAX BENEFITS, END OF THE PERIOD$936 $848 $896 
As of May 31, 2023, total gross unrecognized tax benefits, excluding related interest and penalties, were $936 million, of which $651 million would affect the Company's effective tax rate if recognized in future periods. The majority of the total gross unrecognized tax benefits are long-term in nature and included within Deferred income taxes and other liabilities on the Consolidated Balance Sheets.
The Company recognizes interest and penalties related to income tax matters in Income tax expense. The liability for payment of interest and penalties increased by $20 million during the fiscal year ended May 31, 2023, increased by $45 million during the fiscal year ended May 31, 2022, and increased by $45 million during the fiscal year ended May 31, 2021. As of May 31, 2023 and 2022, accrued interest and penalties related to uncertain tax positions were $268 million and $248 million, respectively (excluding federal benefit) and were included within Deferred income taxes and other liabilities on the Consolidated Balance Sheets.
As of May 31, 2023 and 2022, long-term income taxes payable were $373 million and $535 million, respectively, and were included within Deferred income taxes and other liabilities on the Consolidated Balance Sheets.
The Company is subject to taxation in the U.S., as well as various state and foreign jurisdictions. The Company is currently under audit by the U.S. IRS for fiscal years 2017 through 2019. The Company has closed all U.S. federal income tax matters through fiscal 2016, with the exception of certain transfer pricing adjustments. Tax years after 2011 remain open in certain major foreign jurisdictions. Although the timing of resolution of audits is not certain, the Company evaluates all domestic and foreign audit issues in the aggregate, along with the expiration of applicable statutes of limitations, and estimates that it is reasonably possible the total gross unrecognized tax benefits could decrease by up to $50 million within the next 12 months. In January 2019, the European Commission opened a formal investigation to examine whether the Netherlands has breached State Aid rules when granting certain tax rulings to the Company. The Company believes the investigation is without merit. If this matter is adversely resolved, the Netherlands may be required to assess additional amounts with respect to prior periods, and the Company's income taxes related to prior periods in the Netherlands could increase.
A portion of the Company's foreign operations benefit from a tax holiday, which is set to expire in 2031. This tax holiday may be extended when certain conditions are met or may be terminated early if certain conditions are not met. The tax benefit attributable to this tax holiday, before taking into consideration other U.S. indirect tax provisions, was $263 million, $221 million and $238 million for the fiscal years ended May 31, 2023, 2022 and 2021, respectively. The benefit of the tax holiday on diluted earnings per common share was $0.17, $0.14 and $0.15 for the fiscal years ended May 31, 2023, 2022 and 2021, respectively.
Deferred tax assets as of May 31, 2023 and 2022, were reduced by a valuation allowance. For the fiscal year ended May 31, 2023, a valuation allowance was provided for U.S. capital loss carryforwards and on tax benefits generated by certain entities with operating losses. For the fiscal year ended May 31, 2022, a valuation allowance was provided for U.S. capital loss carryforwards and on tax benefits generated by certain entities with operating losses. There was a $3 million net increase in the valuation allowance for the fiscal year ended May 31, 2023, compared to a $7 million net increase for the fiscal year ended May 31, 2022, and $14 million net decrease for the fiscal year ended May 31, 2021.
The Company has available domestic and foreign loss carry-forwards of $61 million as of May 31, 2023. If not utilized, $33 million of losses will expire in the periods between fiscal 2028 and 2043.
v3.23.2
Redeemable Preferred Stock
12 Months Ended
May 31, 2023
Temporary Equity Disclosure [Abstract]  
Redeemable Preferred Stock
NOTE 8 — REDEEMABLE PREFERRED STOCK
Sojitz America is the sole owner of the Company's authorized redeemable preferred stock, $1 par value, which is redeemable at the option of Sojitz America or the Company at par value aggregating $0.3 million. A cumulative dividend of $0.10 per share is payable annually on May 31, and no dividends may be declared or paid on the common stock of the Company unless dividends on the redeemable preferred stock have been declared and paid in full. There have been no changes in the redeemable preferred stock in the fiscal years ended May 31, 2023, 2022 and 2021. As the holder of the redeemable preferred stock, Sojitz America does not have general voting rights but does have the right to vote as a separate class on the sale of all or substantially all of the assets of the Company and its subsidiaries; on merger, consolidation, liquidation or dissolution of the Company; or on the sale or assignment of the NIKE trademark for athletic footwear sold in the United States. The redeemable preferred stock has been fully issued to Sojitz America and is not blank check preferred stock. The Company's articles of incorporation do not permit the issuance of additional preferred stock.
v3.23.2
Common Stock and Stock-Based Compensation
12 Months Ended
May 31, 2023
Share-Based Payment Arrangement, Noncash Expense [Abstract]  
Common Stock and Stock-Based Compensation
NOTE 9 — COMMON STOCK AND STOCK-BASED COMPENSATION
COMMON STOCK
The authorized number of shares of Class A Common Stock, no par value, and Class B Common Stock, no par value, are 400 million and 2,400 million, respectively. Each share of Class A Common Stock is convertible into one share of Class B Common Stock. Voting rights of Class B Common Stock are limited in certain circumstances with respect to the election of directors. There are no differences in the dividend and liquidation preferences or participation rights of the holders of Class A and Class B Common Stock. From time to time, the Company's Board of Directors authorizes share repurchase programs for the repurchase of Class B Common Stock. The value of repurchased shares is deducted from Total shareholders' equity through allocation to Capital in excess of stated value and Retained earnings.
STOCK-BASED COMPENSATION
The NIKE, Inc. Stock Incentive Plan (the "Stock Incentive Plan") provides for the issuance of up to 798 million previously unissued shares of Class B Common Stock in connection with equity awards granted under the Stock Incentive Plan. The Stock Incentive Plan authorizes the grant of non-statutory stock options, incentive stock options, stock appreciation rights, and stock awards, including restricted stock and restricted stock units. Restricted stock units include both time-vesting restricted stock units ("RSUs") as well as performance-based restricted stock units ("PSUs"). A committee of the Board of Directors administers the Stock Incentive Plan and has the authority to determine the employees to whom awards will be made, the amount of the awards and the other terms and conditions of the awards. The Company generally grants stock options, restricted stock and restricted stock units on an annual basis. The exercise price for stock options and stock appreciation rights may not be less than the fair market value of the underlying shares on the date of grant. Substantially all awards under the Stock Incentive Plan vest ratably over 4 years of continued employment, with stock options expiring 10 years from the date of grant.
The following table summarizes the Company's total stock-based compensation expense recognized in Cost of sales or Operating overhead expense, as applicable: 
 YEAR ENDED MAY 31,
(Dollars in millions)
202320222021
Stock options(1)
$311 $297 $323 
ESPPs72 60 63 
Restricted stock and restricted stock units(1)(2)
372 281 225 
TOTAL STOCK-BASED COMPENSATION EXPENSE$755 $638 $611 
(1)Expense for stock options includes the expense associated with stock appreciation rights. Accelerated stock option expense is primarily recorded for employees meeting certain retirement eligibility requirements and was $64 million, $57 million and $67 million for the fiscal years ended May 31, 2023, 2022 and 2021, respectively. During fiscal 2021, an immaterial amount of accelerated stock option and restricted stock unit expense was also recorded for certain employees impacted by the Company's organizational realignment. For more information, see Note 19 — Restructuring.
(2)For the fiscal years ended May 31, 2023 and 2022, expense for restricted stock units includes an immaterial amount of expense for PSUs.
The income tax benefit related to stock-based compensation expense was $71 million, $327 million and $297 million for the fiscal years ended May 31, 2023, 2022 and 2021, respectively, and reported within Income tax expense.
STOCK OPTIONS
The weighted average fair value per share of stock options granted during the years ended May 31, 2023, 2022 and 2021, computed as of the grant date using the Black-Scholes pricing model, was $31.31, $37.53 and $26.75, respectively. The weighted average assumptions used to estimate these fair values were as follows:
 YEAR ENDED MAY 31,
202320222021
Dividend yield0.9 %0.8 %0.9 %
Expected volatility27.1 %24.9 %27.3 %
Weighted average expected life (in years)5.85.86.0
Risk-free interest rate3.3 %0.9 %0.4 %
Expected volatilities are based on an analysis of the historical volatility of the Company's common stock, the implied volatility in market traded options on the Company's common stock with a term greater than one year, as well as other factors. The weighted average expected life of options is based on an analysis of historical and expected future exercise patterns. The interest rate is based on the U.S. Treasury (constant maturity) risk-free rate in effect at the date of grant for periods corresponding with the expected term of the options.
The following summarizes the stock option transactions under the plan discussed above: 
SHARES(1)
WEIGHTED AVERAGE OPTION PRICE
(In millions)
Options outstanding as of May 31, 202268.0 $88.66 
Exercised(7.5)57.11 
Forfeited(1.5)122.93 
Granted12.0 107.44 
Options outstanding as of May 31, 202371.0 $94.40 
(1)Includes stock appreciation rights transactions.
Options exercisable as of May 31, 2023 were 44.7 million and had a weighted average option price of $79.95 per share. The aggregate intrinsic value for options outstanding and exercisable as of May 31, 2023 was $1,380 million and $1,307 million, respectively. The total intrinsic value of the options exercised during the years ended May 31, 2023, 2022 and 2021 was $438 million, $1,742 million and $1,571 million, respectively. The intrinsic value is the amount by which the market value of the underlying stock exceeds the exercise price of the options. The weighted average contractual life remaining for options outstanding and options exercisable as of May 31, 2023 was 5.9 years and 4.5 years, respectively. As of May 31, 2023, the Company had $425 million of unrecognized compensation costs from stock options, net of estimated forfeitures, to be recognized in Cost of sales or Operating overhead expense, as applicable, over a weighted average remaining period of 2.5 years.
EMPLOYEE STOCK PURCHASE PLANS
In addition to the Stock Incentive Plan, the Company gives employees the right to purchase shares at a discount from the market price under ESPPs. Subject to the annual statutory limit, employees are eligible to participate through payroll deductions of up to 10% of their compensation. At the end of each six-month offering period, shares are purchased by the participants at 85% of the lower of the fair market value at the beginning or the end of the offering period. Employees purchased 3.0 million, 2.0 million and 2.5 million shares during each of the fiscal years ended May 31, 2023, 2022 and 2021, respectively.
RESTRICTED STOCK AND RESTRICTED STOCK UNITS
Recipients of restricted stock are entitled to cash dividends and to vote their respective shares throughout the period of restriction. Recipients of restricted stock units, which includes RSUs and PSUs, are entitled to dividend equivalent cash payments upon vesting. The number of shares of restricted stock and restricted stock units vested includes shares of common stock withheld by the Company on behalf of employees to satisfy the minimum statutory tax withholding requirements.
The following summarizes the restricted stock and restricted stock units transactions under the plan discussed above: 
SHARES(1)
WEIGHTED AVERAGE GRANT DATE
FAIR VALUE
(In millions)
Nonvested as of May 31, 20226.7 $130.88
Vested(2.2)114.85
Forfeited(0.7)131.10
Granted4.5 115.56
Nonvested as of May 31, 20238.3 $126.97
(1) Includes an immaterial amount of PSU transactions
The weighted average fair value per share of restricted stock and restricted stock units granted for the fiscal years ended May 31, 2023, 2022 and 2021, computed as of the grant date, was $115.56, $168.04 and $113.84, respectively. During the fiscal years ended May 31, 2023, 2022 and 2021, the aggregate fair value of vested restricted stock and restricted stock units was $250 million, $354 million and $310 million, respectively, computed as of the date of vesting.
As of May 31, 2023, the Company had $649 million of unrecognized compensation costs from restricted stock and restricted stock units, net of estimated forfeitures, to be recognized in Cost of sales or Operating overhead expense, as applicable, over a weighted average remaining period of 2.3 years.
v3.23.2
Earnings Per Share
12 Months Ended
May 31, 2023
Earnings Per Share [Abstract]  
Earnings Per Share
NOTE 10 — EARNINGS PER SHARE
The following is a reconciliation from basic earnings per common share to diluted earnings per common share. The computations of diluted earnings per common share excluded restricted stock, restricted stock units and options, including shares under ESPPs, to purchase an estimated additional 31.7 million, 9.4 million and 11.3 million shares of common stock outstanding for the fiscal years ended May 31, 2023, 2022 and 2021, respectively, because the awards were assumed to be anti-dilutive.
 YEAR ENDED MAY 31,
(In millions, except per share data)
202320222021
Net income available to common stockholders$5,070 $6,046 $5,727 
Determination of shares:
Weighted average common shares outstanding1,551.6 1,578.8 1,573.0 
Assumed conversion of dilutive stock options and awards18.2 32.0 36.4 
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING1,569.8 1,610.8 1,609.4 
Earnings per common share:
Basic$3.27 $3.83 $3.64 
Diluted$3.23 $3.75 $3.56 
v3.23.2
Benefit Plans
12 Months Ended
May 31, 2023
Retirement Benefits [Abstract]  
Benefit Plans
NOTE 11 — BENEFIT PLANS
The Company has a qualified 401(k) Savings and Profit Sharing Plan, in which all U.S. employees are able to participate. The Company matches a portion of employee contributions to the savings plan. Company contributions to the savings plan were $136 million, $126 million and $110 million and included in Cost of sales or Operating overhead expense, as applicable, for the fiscal years ended May 31, 2023, 2022 and 2021, respectively.
The Company also has a Long-Term Incentive Plan ("LTIP") adopted by the Board of Directors and approved by shareholders in September 1997, which has been amended from time to time. The Company recognized an immaterial amount of Operating overhead expense related to cash awards under the LTIP during the years ended May 31, 2023, 2022 and 2021. During the fiscal years ended May 31, 2023 and 2022, under the Stock Incentive Plan, the Company granted PSUs which replaced cash-based long-term incentive awards historically granted under the Company's LTIP. Refer to Note 9 — Common Stock and Stock-Based Compensation for further information related to PSUs.
The Company allows certain highly compensated employees and non-employee directors of the Company to defer compensation under a nonqualified deferred compensation plan. A rabbi trust was established to fund the Company's nonqualified deferred compensation plan obligation. The assets in the rabbi trust of approximately $875 million and $876 million as of May 31, 2023 and 2022, respectively, primarily consist of company owned life insurance policies recorded at their cash surrender value and are classified in Deferred income taxes and other assets on the Consolidated Balance Sheets. Deferred compensation plan liabilities were $897 million and $890 million as of May 31, 2023 and 2022, respectively, and primarily classified in Deferred income taxes and other liabilities on the Consolidated Balance Sheets.
The Company has pension plans in various countries worldwide. The pension plans are only available to local employees and are generally government mandated. The liability related to the unfunded pension liabilities of the plans was $29 million and $30 million as of May 31, 2023 and 2022, respectively, and primarily classified as non-current in Deferred income taxes and other liabilities on the Consolidated Balance Sheets.
v3.23.2
Risk Management and Derivatives
12 Months Ended
May 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Risk Management and Derivatives
NOTE 12 — RISK MANAGEMENT AND DERIVATIVES
The Company is exposed to global market risks, including the effect of changes in foreign currency exchange rates and interest rates, and uses derivatives to manage financial exposures that occur in the normal course of business. The Company does not hold or issue derivatives for trading or speculative purposes.
The Company may elect to designate certain derivatives as hedging instruments under U.S. GAAP. The Company formally documents all relationships between designated hedging instruments and hedged items, as well as its risk management objectives and strategies for undertaking hedge transactions. This process includes linking all derivatives designated as hedges to either recognized assets or liabilities or forecasted transactions and assessing, both at inception and on an ongoing basis, the effectiveness of the hedging relationships.
The majority of derivatives outstanding as of May 31, 2023, are designated as foreign currency cash flow hedges, primarily for Euro/U.S. Dollar, British Pound/Euro, Chinese Yuan/U.S. Dollar and Japanese Yen/U.S. Dollar currency pairs. All derivatives are recognized on the Consolidated Balance Sheets at fair value and classified based on the instrument's maturity date.
The following tables present the fair values of derivative instruments included within the Consolidated Balance Sheets:
 DERIVATIVE ASSETS
BALANCE SHEET LOCATIONMAY 31,
(Dollars in millions)
20232022
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and optionsPrepaid expenses and other current assets$480 $639 
Foreign exchange forwards and optionsDeferred income taxes and other assets64 206 
Total derivatives formally designated as hedging instruments544 845 
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options and embedded derivativesPrepaid expenses and other current assets13 35 
Total derivatives not designated as hedging instruments13 35 
TOTAL DERIVATIVE ASSETS$557 $880 


 DERIVATIVE LIABILITIES
BALANCE SHEET LOCATIONMAY 31,
(Dollars in millions)
20232022
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and optionsAccrued liabilities$93 $37 
Foreign exchange forwards and optionsDeferred income taxes and other liabilities52 11 
Total derivatives formally designated as hedging instruments145 48 
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options and embedded derivativesAccrued liabilities35 29 
Total derivatives not designated as hedging instruments35 29 
TOTAL DERIVATIVE LIABILITIES$180 $77 
The following table presents the amounts in the Consolidated Statements of Income in which the effects of cash flow hedges are recorded and the effects of cash flow hedge activity on these line items for the fiscal years ended May 31, 2023, 2022 and 2021:
YEAR ENDED MAY 31,
202320222021
(Dollars in millions)
TOTALAMOUNT OF
GAIN (LOSS)
ON CASH FLOW
HEDGE ACTIVITY
TOTALAMOUNT OF
GAIN (LOSS)
ON CASH FLOW
HEDGE ACTIVITY
TOTALAMOUNT OF
GAIN (LOSS)
ON CASH FLOW
HEDGE ACTIVITY
Revenues$51,217 $26 $46,710 $(82)$44,538 $45 
Cost of sales28,925 581 25,231 (23)24,576 51 
Demand creation expense4,060 (5)3,850 3,114 
Other (income) expense, net(280)338 (181)130 14 (47)
Interest expense (income), net(6)(8)205 (7)262 (7)
The following tables present the amounts affecting the Consolidated Statements of Income for the years ended May 31, 2023, 2022 and 2021:

(Dollars in millions)
AMOUNT OF GAIN (LOSS)
RECOGNIZED IN OTHER
COMPREHENSIVE INCOME (LOSS) ON DERIVATIVES
(1)
AMOUNT OF GAIN (LOSS)
RECLASSIFIED FROM ACCUMULATED
OTHER COMPREHENSIVE
INCOME (LOSS) INTO INCOME
(1)
YEAR ENDED MAY 31,LOCATION OF GAIN (LOSS)
RECLASSIFIED FROM ACCUMULATED
OTHER COMPREHENSIVE INCOME
(LOSS) INTO INCOME
YEAR ENDED MAY 31,
202320222021202320222021
Derivatives designated as
cash flow hedges:
Foreign exchange forwards
and options
$16 $(39)$(61)Revenues$26 $(82)$45 
Foreign exchange forwards
and options
305 889 (563)Cost of sales581 (23)51 
Foreign exchange forwards
and options
(1)(6)Demand creation expense(5)
Foreign exchange forwards
and options
207 492 (163)Other (income) expense, net338 130 (47)
Interest rate swaps(2)
— — — Interest expense (income), net(8)(7)(7)
Total designated cash
flow hedges
$527 $1,336 $(782)$932 $19 $45 
(1)For the fiscal years ended May 31, 2023, 2022, and 2021, 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
YEAR ENDED MAY 31,
(Dollars in millions)
202320222021
Derivatives designated as hedging instruments:
Foreign exchange forwards and options and embedded derivatives$28 $38 $(167)Other (income) expense, net
CASH FLOW HEDGES
All changes in fair value of derivatives designated as cash flow hedge instruments are recorded in Accumulated other comprehensive income (loss) until Net income is affected by the variability of cash flows of the hedged transaction. Effective hedge results are classified in the Consolidated Statements of Income in the same manner as the underlying exposure. When it is no longer probable the forecasted hedged transaction will occur in the initially identified time period, hedge accounting is discontinued and the Company accounts for the associated derivative as an undesignated instrument as discussed below. Additionally, the gains and losses associated with derivatives no longer designated as cash flow hedge instruments in Accumulated other comprehensive income (loss) are recognized immediately in Other (income) expense, net, if it is probable the forecasted hedged transaction will not occur by the end of the initially identified time period or within an additional two-month period thereafter. In rare circumstances, the additional period of time may exceed two months due to extenuating circumstances related to the nature of the forecasted transaction that are outside the control or influence of the Company.
The purpose of the Company's foreign exchange risk management program is to lessen both the positive and negative effects of currency fluctuations on the Company's consolidated results of operations, financial position and cash flows. Foreign currency exposures the Company may elect to hedge in this manner include product costs, non-functional currency denominated revenues, intercompany revenues, demand creation expenses, investments in U.S. Dollar denominated available-for-sale debt securities and certain other intercompany transactions.
Product cost foreign currency exposures are primarily generated through non-functional currency denominated product purchases. NIKE entities primarily purchase product in two ways: (1) Certain NIKE entities purchase product from the NIKE Trading Company ("NTC"), a wholly-owned sourcing hub that buys NIKE branded products from third-party factories, predominantly in U.S. Dollars. The NTC, whose functional currency is the U.S. Dollar, then sells the product to NIKE entities in their respective functional currencies. NTC sales to a NIKE entity with a different functional currency result in a foreign currency
exposure for the NTC. (2) Other NIKE entities purchase product directly from third-party factories in U.S. Dollars. These purchases generate a foreign currency exposure for those NIKE entities with a functional currency other than the U.S. Dollar.
The Company's policy permits the utilization of derivatives to reduce its foreign currency exposures where internal netting or other strategies cannot be effectively employed. Typically, the Company may enter into hedge contracts starting up to 12 to 24 months in advance of the forecasted transaction and may place incremental hedges up to 100% of the exposure by the time the forecasted transaction occurs. The total notional amount of outstanding foreign currency derivatives designated as cash flow hedges was $18.2 billion as of May 31, 2023.
As of May 31, 2023, approximately $419 million of deferred net gains (net of tax) on both outstanding and matured derivatives in Accumulated other comprehensive income (loss) are expected to be reclassified to Net income during the next 12 months concurrent with the underlying hedged transactions also being recorded in Net income. Actual amounts ultimately reclassified to Net income are dependent on the exchange rates in effect when derivative contracts currently outstanding mature. As of May 31, 2023, the maximum term over which the Company hedges exposures to the variability of cash flows for its forecasted transactions was 27 months.
FAIR VALUE HEDGES
The Company has, in the past, been exposed to the risk of changes in the fair value of certain fixed-rate debt attributable to changes in interest rates. Derivatives used by the Company to hedge this risk are receive-fixed, pay-variable interest rate swaps. The Company had no interest rate swaps designated as fair value hedges as of May 31, 2023.
NET INVESTMENT HEDGES
The Company has, in the past, hedged and may, in the future, hedge the risk of variability in foreign currency-denominated net investments in wholly-owned international operations. All changes in fair value of the derivatives designated as net investment hedges are reported in Accumulated other comprehensive income (loss) along with the foreign currency translation adjustments on those investments. The Company had no outstanding net investment hedges as of May 31, 2023.
UNDESIGNATED DERIVATIVE INSTRUMENTS
The Company may elect to enter into foreign exchange forwards to mitigate the change in fair value of specific assets and liabilities on the Consolidated Balance Sheets. These undesignated instruments are recorded at fair value as a derivative asset or liability on the Consolidated Balance Sheets with their corresponding change in fair value recognized in Other (income) expense, net, together with the remeasurement gain or loss from the hedged balance sheet position. The total notional amount of outstanding undesignated derivative instruments was $4.7 billion as of May 31, 2023.
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 trigger collateral requirements. As of May 31, 2023, the Company was in compliance with all credit risk-related contingent features, and derivative instruments with such features were in a net liability position of approximately $2 million. Accordingly, the Company posted no cash collateral as a result of these contingent features. Further, as of May 31, 2023, the Company had received $36 million in cash collateral from various counterparties to its derivative contracts. The Company considers the impact of the risk of counterparty default to be immaterial.
For additional information related to the Company's derivative financial instruments and collateral, refer to Note 4 — Fair Value Measurements.
v3.23.2
Accumulated Other Comprehensive Income (Loss)
12 Months Ended
May 31, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Accumulated Other Comprehensive Income (Loss)
NOTE 13 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
The changes in Accumulated other comprehensive income (loss), net of tax, were as follows:
(Dollars in millions)
FOREIGN CURRENCY TRANSLATION ADJUSTMENT(1)
CASH FLOW HEDGES
NET INVESTMENT HEDGES(1)
OTHERTOTAL
Balance at May 31, 2022$(520)$779 $115 $(56)$318 
Other comprehensive income (loss):
Other comprehensive gains (losses) before reclassifications(2)
(91)487 — (20)376 
Reclassifications to net income of previously deferred (gains) losses(3)
358(835)— 14(463)
Total other comprehensive income (loss)267 (348)— (6)(87)
Balance at May 31, 2023$(253)$431 $115 $(62)$231 
(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, $(40) million, $0 million, $6 million and $(34) million, respectively.
(3)Net of tax (benefit) expense of $(16) million, $97 million, $0 million, $(5) million and $76 million, respectively.
(Dollars in millions)
FOREIGN CURRENCY TRANSLATION ADJUSTMENT(1)
CASH FLOW HEDGES
NET INVESTMENT HEDGES(1)
OTHERTOTAL
Balance at May 31, 2021$2 $(435)$115 $(62)$(380)
Other comprehensive income (loss):
Other comprehensive gains (losses) before reclassifications(2)
(522)1,222 — 28 728 
Reclassifications to net income of previously deferred (gains) losses(3)
— (8)— (22)(30)
Total other comprehensive income (loss)(522)1,214 — 698 
Balance at May 31, 2022$(520)$779 $115 $(56)$318 
(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, $(114) million, $0 million, $(9) million and $(123) million, respectively.
(3)Net of tax (benefit) expense of $0 million, $11 million, $0 million, $9 million and $20 million, respectively.
The following table summarizes the reclassifications from Accumulated other comprehensive income (loss) to the Consolidated Statements of Income:
AMOUNT OF GAIN (LOSS)
RECLASSIFIED FROM ACCUMULATED
OTHER COMPREHENSIVE INCOME
(LOSS) INTO INCOME
LOCATION OF GAIN (LOSS)
RECLASSIFIED FROM ACCUMULATED
OTHER COMPREHENSIVE INCOME
(LOSS) INTO INCOME
YEAR ENDED MAY 31,
(Dollars in millions)
20232022
Gains (losses) on foreign currency translation adjustment$(374)$— Other (income) expense, net
Total before tax(374)— 
Tax (expense) benefit16— 
Gain (loss) net of tax(358) 
Gains (losses) on cash flow hedges:
Foreign exchange forwards and options26 (82)Revenues
Foreign exchange forwards and options581 (23)Cost of sales
Foreign exchange forwards and options(5)Demand creation expense
Foreign exchange forwards and options338 130 Other (income) expense, net
Interest rate swaps(8)(7)Interest expense (income), net
Total before tax93219 
Tax (expense) benefit(97)(11)
Gain (loss) net of tax8358 
Gains (losses) on other(19)31 Other (income) expense, net
Total before tax(19)31 
Tax (expense) benefit5(9)
Gain (loss) net of tax(14)22 
Total net gain (loss) reclassified for the period$463 $30 
v3.23.2
Revenues
12 Months Ended
May 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenues
NOTE 14 — REVENUES
DISAGGREGATION OF REVENUES
The following tables present the Company's Revenues disaggregated by reportable operating segment, major product line and distribution channel:
YEAR ENDED MAY 31, 2023
(Dollars in millions)
NORTH AMERICAEUROPE, MIDDLE EAST & AFRICAGREATER CHINA
ASIA PACIFIC & LATIN AMERICA(1)
GLOBAL BRAND DIVISIONSTOTAL NIKE BRANDCONVERSECORPORATETOTAL NIKE, INC.
Revenues by:
Footwear$14,897 $8,260 $5,435 $4,543 $— $33,135 $2,155 $— $35,290 
Apparel5,947 4,566 1,666 1,664 — 13,843 90 — 13,933 
Equipment764 592 147 224 — 1,727 28 — 1,755 
Other— — — — 58 58 154 27 239 
TOTAL REVENUES$21,608 $13,418 $7,248 $6,431 $58 $48,763 $2,427 $27 $51,217 
Revenues by:
Sales to Wholesale Customers$11,273 $8,522 $3,866 $3,736 $— $27,397 $1,299 $— $28,696 
Sales through Direct to Consumer10,335 4,896 3,382 2,695 — 21,308 974 — 22,282 
Other— — — — 58 58 154 27 239 
TOTAL REVENUES$21,608 $13,418 $7,248 $6,431 $58 $48,763 $2,427 $27 $51,217 
(1)Refer to Note 18 — Acquisitions and Divestitures for additional information on the transition of the Company's NIKE Brand businesses in its CASA territory to third-party distributors.

YEAR ENDED MAY 31, 2022
(Dollars in millions)
NORTH AMERICAEUROPE, MIDDLE EAST & AFRICAGREATER CHINAASIA PACIFIC & LATIN AMERICAGLOBAL BRAND DIVISIONSTOTAL NIKE BRANDCONVERSECORPORATETOTAL NIKE, INC.
Revenues by:
Footwear$12,228 $7,388 $5,416 $4,111 $— $29,143 $2,094 $— $31,237 
Apparel5,492 4,527 1,938 1,610 — 13,567 103 — 13,670 
Equipment633 564 193 234 — 1,624 26 — 1,650 
Other— — — — 102 102 123 (72)153 
TOTAL REVENUES$18,353 $12,479 $7,547 $5,955 $102 $44,436 $2,346 $(72)$46,710 
Revenues by:
Sales to Wholesale Customers$9,621 $8,377 $4,081 $3,529 $— $25,608 $1,292 $— $26,900 
Sales through Direct to Consumer8,732 4,102 3,466 2,426 — 18,726 931 — 19,657 
Other— — — — 102 102 123 (72)153 
TOTAL REVENUES$18,353 $12,479 $7,547 $5,955 $102 $44,436 $2,346 $(72)$46,710 
YEAR ENDED MAY 31, 2021
(Dollars in millions)
NORTH AMERICAEUROPE, MIDDLE EAST & AFRICAGREATER CHINA
ASIA PACIFIC & LATIN AMERICA(1)
GLOBAL BRAND DIVISIONSTOTAL NIKE BRANDCONVERSECORPORATETOTAL NIKE, INC.
Revenues by:
Footwear$11,644 $6,970 $5,748 $3,659 $— $28,021 $1,986 $— $30,007 
Apparel5,028 3,996 2,347 1,494 — 12,865 104 — 12,969 
Equipment507 490 195 190 — 1,382 29 — 1,411 
Other— — — — 25 25 86 40 151 
TOTAL REVENUES$17,179 $11,456 $8,290 $5,343 $25 $42,293 $2,205 $40 $44,538 
Revenues by:
Sales to Wholesale Customers$10,186 $7,812 $4,513 $3,387 $— $25,898 $1,353 $— $27,251 
Sales through Direct to Consumer6,993 3,644 3,777 1,956 — 16,370 766 — 17,136 
Other— — — — 25 25 86 40 151 
TOTAL REVENUES$17,179 $11,456 $8,290 $5,343 $25 $42,293 $2,205 $40 $44,538 
(1) Refer to Note 18 — Acquisitions and Divestitures for additional information on the transition of the Company's NIKE Brand business in Brazil to a third-party distributor.
For the fiscal years ended May 31, 2023, 2022 and 2021, Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment. Converse Other revenues were primarily attributable to licensing businesses. Corporate revenues primarily consisted of foreign currency hedge gains and losses related to revenues generated by entities within the NIKE Brand geographic operating segments and Converse but managed through the Company's central foreign exchange risk management program.
As of May 31, 2023 and 2022, the Company did not have any contract assets and had an immaterial amount of contract liabilities recorded in Accrued liabilities on the Consolidated Balance Sheets.
SALES-RELATED RESERVES
As of May 31, 2023 and 2022, the Company's sales-related reserve balance, which includes returns, post-invoice sales discounts and miscellaneous claims, was $994 million and $1,015 million, respectively, recorded in Accrued liabilities on the Consolidated Balance Sheets. The estimated cost of inventory for expected product returns was $226 million and $194 million as of May 31, 2023 and 2022, respectively, and was recorded in Prepaid expenses and other current assets on the Consolidated Balance Sheets.
v3.23.2
Operating Segments and Related Information
12 Months Ended
May 31, 2023
Segment Reporting [Abstract]  
Operating Segments and Related Information
NOTE 15 — OPERATING SEGMENTS AND RELATED INFORMATION
The Company's operating segments are evidence of the structure of the Company's internal organization. The NIKE Brand segments are defined by geographic regions for operations participating in NIKE Brand sales activity.
Each NIKE Brand geographic segment operates predominantly in one industry: the design, development, marketing and selling of athletic footwear, apparel and equipment. The Company's reportable operating segments for the NIKE Brand are: North America; Europe, Middle East & Africa ("EMEA"); Greater China; and Asia Pacific & Latin America ("APLA"), and include results for the NIKE and Jordan brands. Refer to Note 18 — Acquisitions and Divestitures for information regarding the transition of NIKE Brand businesses in certain countries within APLA to third-party distributors.
The Company's NIKE Direct operations are managed within each NIKE Brand geographic operating segment. Converse is also a reportable segment for the Company and operates in one industry: the design, marketing, licensing and selling of athletic lifestyle sneakers, apparel and accessories.
Global Brand Divisions is included within the NIKE Brand for presentation purposes to align with the way management views the Company. Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment. Global Brand Divisions costs represent demand creation and operating overhead expense that include product creation and design expenses centrally managed for the NIKE Brand, as well as costs associated with NIKE Direct global digital operations and enterprise technology.
Corporate consists primarily of unallocated general and administrative expenses, including expenses associated with centrally managed departments; depreciation and amortization related to the Company's headquarters; unallocated insurance, benefit and compensation programs, including stock-based compensation; and certain foreign currency gains and losses, including certain hedge gains and losses.
The primary financial measure used by the Company to evaluate performance of individual operating segments is earnings before interest and taxes ("EBIT"), which represents Net income before Interest expense (income), net and Income tax expense in the Consolidated Statements of Income.
As part of the Company's centrally managed foreign exchange risk management program, standard foreign currency rates are assigned twice per year to each NIKE Brand entity in the Company's geographic operating segments and to Converse. These rates are set approximately nine and twelve months in advance of the future selling seasons to which they relate (specifically, for each currency, one standard rate applies to the fall and holiday selling seasons, and one standard rate applies to the spring and summer selling seasons) based on average market spot rates in the calendar month preceding the date they are established. Inventories and Cost of sales for geographic operating segments and Converse reflect the use of these standard rates to record non-functional currency product purchases in the entity's functional currency. Differences between assigned standard foreign currency rates and actual market rates are included in Corporate, together with foreign currency hedge gains and losses generated from the Company's centrally managed foreign exchange risk management program and other conversion gains and losses.
Accounts receivable, net, Inventories and Property, plant and equipment, net for operating segments are regularly reviewed by management and are therefore provided below.
YEAR ENDED MAY 31,
(Dollars in millions)
202320222021
REVENUES
North America$21,608 $18,353 $17,179 
Europe, Middle East & Africa13,418 12,479 11,456 
Greater China7,248 7,547 8,290 
Asia Pacific & Latin America6,431 5,955 5,343 
Global Brand Divisions58 102 25 
Total NIKE Brand48,763 44,436 42,293 
Converse2,427 2,346 2,205 
Corporate27 (72)40 
TOTAL NIKE, INC. REVENUES$51,217 $46,710 $44,538 
EARNINGS BEFORE INTEREST AND TAXES
North America$5,454 $5,114 $5,089 
Europe, Middle East & Africa3,531 3,293 2,435 
Greater China2,283 2,365 3,243 
Asia Pacific & Latin America1,932 1,896 1,530 
Global Brand Divisions(4,841)(4,262)(3,656)
Converse676 669 543 
Corporate(2,840)(2,219)(2,261)
Interest expense (income), net(6)205 262 
TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES$6,201 $6,651 $6,661 
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT
North America$283 $146 $98 
Europe, Middle East & Africa215 197 153 
Greater China56 78 94 
Asia Pacific & Latin America64 56 54 
Global Brand Divisions271 222 278 
Total NIKE Brand889 699 677 
Converse
Corporate140 103 107 
TOTAL ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT$1,036 $811 $791 
DEPRECIATION
North America$128 $124 $130 
Europe, Middle East & Africa120 134 136 
Greater China54 41 46 
Asia Pacific & Latin America42 42 43 
Global Brand Divisions211 220 222 
Total NIKE Brand555 561 577 
Converse17 22 26 
Corporate131 134 141 
TOTAL DEPRECIATION$703 $717 $744 
AS OF MAY 31,
(Dollars in millions)
20232022
ACCOUNTS RECEIVABLE, NET
North America$1,653 $1,850 
Europe, Middle East & Africa1,197 1,351 
Greater China162 406 
Asia Pacific & Latin America(1)
700 664 
Global Brand Divisions96 113 
Total NIKE Brand3,808 4,384 
Converse235 230 
Corporate88 53 
TOTAL ACCOUNTS RECEIVABLE, NET$4,131 $4,667 
INVENTORIES
North America$3,806 $4,098 
Europe, Middle East & Africa2,167 1,887 
Greater China973 1,044 
Asia Pacific & Latin America(1)
894 686 
Global Brand Divisions232 197 
Total NIKE Brand8,072 7,912 
Converse305 279 
Corporate77 229 
TOTAL INVENTORIES$8,454 $8,420 
PROPERTY, PLANT AND EQUIPMENT, NET
North America$794 $639 
Europe, Middle East & Africa1,009 920 
Greater China292 303 
Asia Pacific & Latin America(1)
279 274 
Global Brand Divisions840 789 
Total NIKE Brand3,214 2,925 
Converse38 49 
Corporate1,829 1,817 
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET$5,081 $4,791 
(1)Excludes assets held-for-sale as of May 31, 2022. See Note 18 — Acquisitions and Divestitures for additional information.
REVENUES AND LONG-LIVED ASSETS BY GEOGRAPHIC AREA
After allocation of revenues for Global Brand Divisions, Converse and Corporate to geographical areas based on the location where the sales originated, revenues by geographical area are essentially the same as reported above for the NIKE Brand operating segments with the exception of the United States. Revenues derived in the United States were $22,007 million, $18,749 million and $17,363 million for the fiscal years ended May 31, 2023, 2022 and 2021, respectively.
The Company's largest concentrations of long-lived assets primarily consist of the Company's corporate headquarters, retail locations and distribution facilities in the United States and China, as well as distribution facilities in Belgium. Long-lived assets attributable to operations in these countries, which consist of property, plant and equipment, net and operating lease ROU assets, net, were as follows:
MAY 31,
(Dollars in millions)
20232022
United States$5,129 $4,916 
Belgium702 646 
China559 538 
v3.23.2
Commitments and Contingencies
12 Months Ended
May 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
NOTE 16 — COMMITMENTS AND CONTINGENCIES
As of May 31, 2023 and 2022, the Company had bank guarantees and letters of credit outstanding totaling $588 million and $289 million, respectively, issued primarily for real estate agreements, self-insurance programs, other general business obligations and legal matters.
In connection with various contracts and agreements, the Company provides routine indemnification relating to the enforceability of intellectual property rights, coverage for legal issues that arise and other items where the Company is acting as the guarantor. Currently, the Company has several such agreements in place. However, based on the Company's historical experience and the estimated probability of future loss, the Company has determined the fair value of such indemnification is not material to the Company's financial position or results of operations.
In the ordinary course of business, the Company is subject to various legal proceedings, claims and government investigations relating to its business, products and actions of its employees and representatives, including contractual and employment relationships, product liability, antitrust, customs, tax, intellectual property and other matters. The outcome of these legal matters is inherently uncertain, and the Company cannot predict the eventual outcome of currently pending matters, the timing of their ultimate resolution or the eventual losses, fines, penalties or consequences relating to those matters. When a loss related to a legal proceeding or claim is probable and reasonably estimable, the Company accrues its best estimate for the ultimate resolution of the matter. If one or more legal matters were to be resolved against the Company in a reporting period for amounts above management's expectations, the Company's financial position, operating results and cash flows for that reporting period could be materially adversely affected. In the opinion of management, based on its current knowledge and after consultation with counsel, the Company does not believe any currently pending legal matters will have a material adverse impact on the Company's results of operations, financial position or cash flows, except as described below.
BELGIAN CUSTOMS CLAIM
The Company has received claims for certain years from the Belgian Customs Authorities for alleged underpaid duties related to products imported beginning in fiscal 2018. The Company disputes these claims and has engaged in the appellate process. The Company has issued bank guarantees in order to appeal the claims. At this time, the Company is unable to estimate the range of loss and cannot predict the final outcome as it could take several years to reach a resolution on this matter. If this matter is ultimately resolved against the Company, the amounts owed, including fines, penalties and other consequences relating to the matter, could have a material adverse effect on the Company's results of operations, financial position and cash flows.
v3.23.2
Leases
12 Months Ended
May 31, 2023
Leases [Abstract]  
Leases
NOTE 17 — LEASES
Lease expense is recognized in Cost of sales or Operating overhead expense within the Consolidated Statements of Income, based on the underlying nature of the leased asset. For the fiscal years ended May 31, 2023, 2022 and 2021, lease expense primarily consisted of operating lease costs of $585 million, $593 million and $589 million, respectively. Lease expense also consisted of $403 million, $366 million and $347 million for fiscal years ended May 31, 2023, 2022 and 2021, respectively, primarily related to variable lease costs, which includes an immaterial amount of short-term lease costs. As of and for the fiscal years ended May 31, 2023 and 2022 and 2021, finance leases were not a material component of the Company's lease portfolio.
The undiscounted cash flows for future maturities of the Company's operating lease liabilities and the reconciliation to the Operating lease liabilities recognized in the Company's Consolidated Balance Sheets are as follows:
(Dollars in millions)
AS OF MAY 31, 2023(1)
Fiscal 2024$506 
Fiscal 2025562 
Fiscal 2026490 
Fiscal 2027436 
Fiscal 2028369 
Thereafter1,225 
Total undiscounted future cash flows related to lease payments$3,588 
Less interest 377 
Present value of lease liabilities$3,211 
(1)Excludes $278 million as of May 31, 2023, of future operating lease payments for lease agreements signed but not yet commenced.
The following table includes supplemental information used to calculate the present value of Operating lease liabilities:
AS OF MAY 31,
20232022
Weighted-average remaining lease term (in years)7.57.8
Weighted-average discount rate2.5 %2.3 %
The following table includes supplemental cash and non-cash information related to operating leases:
YEAR ENDED MAY 31,
(Dollars in millions)
202320222021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$575 $589 $583 
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities$602 $537 $489 
v3.23.2
Acquisitions and Divestitures
12 Months Ended
May 31, 2023
Business Combination and Asset Acquisition [Abstract]  
Acquisitions and Divestitures
NOTE 18 — ACQUISITIONS AND DIVESTITURES
ACQUISITIONS
During fiscal 2023, 2022 and 2021, the Company made multiple acquisitions focused on gaining new capabilities to fuel its Consumer Direct Acceleration strategy, serving consumers personally at a global scale. The impact of acquisitions, individually and in aggregate, was not considered material to the Company's Consolidated Financial Statements.
DIVESTITURES
During the fourth quarter of fiscal 2022, the Company entered into separate definitive agreements to sell its entities in Argentina and Uruguay as well as its entity in Chile to third-party distributors.
The sale of the Company's entity in Chile to a third-party distributor was completed during the first quarter of fiscal 2023. The impacts from the transaction were not material to the Company's Consolidated Financial Statements.
The sale of the Company's entities in Argentina and Uruguay to a third-party distributor was completed during the second quarter of fiscal 2023 and the net loss on the sale of these entities totaled approximately $550 million. This loss included $389 million, recognized primarily in fiscal 2020, largely due to the anticipated release of the cumulative foreign currency translation losses. The remaining loss recognized in fiscal 2023 was due to the devaluation of local currency and cash equivalents included in the transferred assets. Upon completion of the sale, the foreign currency translation losses recorded in Accumulated other comprehensive income (loss) were reclassified to Net income within Other (income) expense, net, on the Company's Consolidated Statements of Comprehensive Income along with the allowance for previously recognized losses recorded in Accrued liabilities. The net loss was classified within Corporate.
The net cash proceeds received are reflected within Other investing activities on the Company's Consolidated Statements of Cash Flows.
The related assets and liabilities of these entities within the Company's APLA operating segment were classified as held-for-sale on the Consolidated Balance Sheets within Prepaid expenses and other currents and Accrued liabilities, respectively, until the transactions closed. As of May 31, 2022, held-for-sale assets were $182 million and held-for-sale liabilities were $58 million.
OTHER DIVESTITURES
During fiscal 2020, the Company entered into a definitive agreement to sell substantially all of its NIKE Brand operations in Brazil and shift to a distributor operating model. During fiscal 2021, the transaction closed and the Company recognized a loss of approximately $50 million within Other (income) expense, net classified within Corporate, on the Consolidated Statements of Income. Cash proceeds received were reflected within Other investing activities on the Consolidated Statements of Cash Flows.
v3.23.2
Restructuring
12 Months Ended
May 31, 2023
Restructuring and Related Activities [Abstract]  
Restructuring
NOTE 19 — RESTRUCTURING
In fiscal 2021, the Company substantially completed a series of leadership and operating model changes to streamline and speed up the strategic execution of the Consumer Direct Acceleration.
For the fiscal year ended May 31, 2021, the Company recognized employee termination costs of $214 million and $35 million within Operating overhead expense and Cost of sales, respectively, and made cash payments of $212 million. Additionally, the related stock-based compensation expense recorded within Operating overhead expense and Cost of sales was $41 million and $4 million, respectively.
These costs were classified within Corporate.
v3.23.2
Schedule II - Valuation and Qualifying Accounts
12 Months Ended
May 31, 2023
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
SCHEDULE II - Valuation and Qualifying Accounts
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS
(Dollars in millions)BALANCE AT
BEGINNING OF
PERIOD
CHARGED TO
 COSTS AND
 EXPENSES
CHARGED
 TO OTHER 

ACCOUNTS
(1)
WRITE-OFFS,
NET
BALANCE
AT END
OF PERIOD
Sales returns reserve
For the fiscal year ended May 31, 2021$682 $2,617 $41 $(2,745)$595 
For the fiscal year ended May 31, 2022595 2,573 (31)(2,612)525 
For the fiscal year ended May 31, 2023525 3,344 (11)(3,309)549 
(1)Amounts included in this column primarily relate to foreign currency translation.
v3.23.2
Summary of Significant Accounting Policies (Policies)
12 Months Ended
May 31, 2023
Accounting Policies [Abstract]  
Basis Of Consolidation BASIS OF CONSOLIDATIONThe Consolidated Financial Statements include the accounts of NIKE, Inc. and its subsidiaries (the "Company" or "NIKE"). All significant intercompany transactions and balances have been eliminated.
Revenue Recognition
REVENUE RECOGNITION
Revenue transactions associated with the sale of NIKE Brand footwear, apparel and equipment, as well as Converse products, comprise a single performance obligation, which consists of the sale of products to customers either through wholesale or direct to consumer channels. The Company satisfies the performance obligation and records revenues when transfer of control to the customer has occurred, based on the terms of sale. A customer is considered to have control once they are able to direct the use and receive substantially all of the benefits of the product.
Control is transferred to wholesale customers upon shipment or upon receipt depending on the country of the sale and the agreement with the customer. Control transfers to retail store customers at the time of sale and to substantially all digital commerce customers upon shipment. The transaction price is determined based upon the invoiced sales price, less anticipated sales returns, discounts and miscellaneous claims from customers. Payment terms for wholesale transactions depend on the country of sale or agreement with the customer and payment is generally required within 90 days or less of shipment to or receipt by the wholesale customer. Payment is due at the time of sale for retail store and digital commerce transactions.
Consideration for trademark licensing contracts is earned through sales-based or usage-based royalty arrangements, and the associated revenues are recognized over the license period.
Taxes assessed by governmental authorities that are both imposed on and concurrent with a specific revenue-producing transaction, and are collected by the Company from a customer, are excluded from Revenues and Cost of sales in the Consolidated Statements of Income. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as fulfillment costs and are included in Cost of sales when the related revenues are recognized.
SALES-RELATED RESERVES
Consideration promised in the Company's contracts with customers is variable due to anticipated reductions, such as sales returns, discounts and miscellaneous claims from customers. The Company estimates the most likely amount it will be entitled to receive and records an anticipated reduction against Revenues, with an offsetting increase to Accrued liabilities at the time revenues are recognized. The estimated cost of inventory for product returns is recorded in Prepaid expenses and other current assets on the Consolidated Balance Sheets.
The provision for anticipated sales returns consists of both contractual return rights and discretionary authorized returns. Provisions for post-invoice sales discounts consist of both contractual programs and discretionary discounts that are expected to be granted at a later date.
Estimates of discretionary authorized returns, discounts and claims are based on (1) historical rates, (2) specific identification of outstanding returns not yet received from customers and outstanding discounts and claims and (3) estimated returns, discounts and claims expected but not yet finalized with customers. Actual returns, discounts and claims in any future period are inherently uncertain and thus may differ from estimates recorded. If actual or expected future returns, discounts or claims are significantly greater or lower than the reserves established, a reduction or increase to net Revenues is recorded in the period in which such determination is made.
Cost Of Sales
COST OF SALES
Cost of sales consists primarily of inventory costs, as well as warehousing costs (including the cost of warehouse labor), third-party royalties, certain foreign currency hedge gains and losses and product design costs. Shipping and handling costs are expensed as incurred and included in Cost of sales.
Demand Creation Expense
DEMAND CREATION EXPENSE
Demand creation expense consists of advertising and promotion costs, including costs of endorsement contracts, complimentary products, television, digital and print advertising as well as media costs, brand events and retail brand presentation. Advertising production costs are expensed the first time an advertisement is run. Advertising media costs are expensed when the advertisement appears. Costs related to brand events are expensed when the event occurs. Costs related to retail brand presentation are expensed when the presentation is complete and delivered.
A significant amount of the Company's promotional expenses result from payments under endorsement contracts. In general, endorsement payments are expensed on a straight-line basis over the term of the contract. However, certain contracts contain elements that may be accounted for differently based upon the facts and circumstances of each individual contract. Prepayments made under contracts are included in Prepaid expenses and other current assets or Deferred income taxes and other assets depending on the period to which the prepayment applies.
Certain contracts provide for contingent payments to endorsers based upon specific achievements in their sport (e.g., winning a championship). The Company records Demand creation expense for these amounts when the endorser achieves the specific goal.
Certain contracts provide for variable payments based upon endorsers maintaining a level of performance in their sport over an extended period of time (e.g., maintaining a specified ranking in a sport for a year). When the Company determines payments are probable, the amounts are reported in Demand creation expense ratably over the contract period based on the Company's best estimate of the endorser's performance. In these instances, to the extent actual payments to the endorser differ from the Company's estimate due to changes in the endorser's performance, adjustments to Demand creation expense may be recorded in a future period.
Certain contracts provide for royalty payments to endorsers based upon a predetermined percent of sales of particular products, which the Company records in Cost of sales as the related sales occur. For contracts containing minimum guaranteed royalty payments, the Company records the amount of any guaranteed payment in excess of that earned through sales of product within Demand creation expense.
Through cooperative advertising programs, the Company reimburses its wholesale customers for certain costs of advertising the Company's products. To the extent the Company receives a distinct good or service in exchange for consideration paid to the customer that does not exceed the fair value of that good or service, the amounts reimbursed are recorded in Demand creation expense.
Operating Overhead Expense
OPERATING OVERHEAD EXPENSE
Operating overhead expense consists primarily of wage and benefit-related expenses, research and development costs, bad debt expense as well as other administrative expenses such as rent, depreciation and amortization, professional services, certain technology investments, meetings and travel.
Cash and Equivalents
CASH AND EQUIVALENTS
Cash and equivalents represent cash and short-term, highly liquid investments, that are both readily convertible to known amounts of cash and so near their maturity they present insignificant risk of changes in value because of changes in interest rates, with maturities three months or less at the date of purchase.
Short-Term Investments
SHORT-TERM INVESTMENTS
Short-term investments consist of highly liquid investments with maturities over three months at the date of purchase. At May 31, 2023 and 2022, Short-term investments consisted of available-for-sale debt securities, which are recorded at fair value with unrealized gains and losses reported, net of tax, in Accumulated other comprehensive income (loss), unless unrealized losses are determined to be unrecoverable. Realized gains and losses on the sale of securities are determined by specific identification. The Company considers all available-for-sale debt securities, including those with maturity dates beyond 12 months, as available to support current operational liquidity needs and, therefore, classifies all securities with maturity dates beyond three months at the date of purchase as current assets within Short-term investments on the Consolidated Balance Sheets.
Allowance for Uncollectible Accounts Receivable ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS RECEIVABLEAccounts receivable, net consist primarily of amounts due from customers. The Company makes ongoing estimates relating to the collectability of its accounts receivable and maintains an allowance for expected losses resulting from the inability of its customers to make required payments. In addition to judgments about the creditworthiness of significant customers based on ongoing credit evaluations, the Company considers historical levels of credit losses, as well as macroeconomic and industry trends to determine the amount of the allowance.
Inventory Valuation
INVENTORY VALUATION
Inventories, substantially all of which are finished goods, are stated at lower of cost and net realizable value and valued on either an average or a specific identification cost basis. In some instances, the Company ships products directly from its suppliers to the customer, with the related inventory and cost of sales recognized on a specific identification basis. Inventory costs primarily consist of product cost from the Company's suppliers, as well as inbound freight, import duties, taxes, insurance, logistics and other handling fees.
Property, Plant and Equipment and Depreciation
PROPERTY, PLANT AND EQUIPMENT AND DEPRECIATION
Property, plant and equipment are recorded at cost. Depreciation is determined on a straight-line basis for land improvements, buildings and leasehold improvements over 2 to 40 years and for machinery and equipment over 2 to 15 years.
Depreciation and amortization of assets used in manufacturing, warehousing and product distribution are recorded in Cost of sales. Depreciation and amortization of all other assets are recorded in Operating overhead expense.
Software Development Costs
SOFTWARE DEVELOPMENT COSTS
Expenditures for major software purchases and software developed for internal use are capitalized and amortized over 2 to 12 years on a straight-line basis. The Company's policy provides for the capitalization of external direct costs associated with developing or obtaining internal use computer software. The Company also capitalizes certain payroll and payroll-related costs for employees who are directly associated with internal use computer software projects. The amount of capitalizable payroll costs with respect to these employees is limited to the time directly spent on such projects. Costs associated with preliminary project stage activities, training, maintenance and all other post-implementation stage activities are expensed as incurred.
Computer Software to be Sold, Leased or Otherwise Marketed Development costs of computer software to be sold, leased or otherwise marketed as an integral part of a product are subject to capitalization beginning when a product's technological feasibility has been established and ending when a product is available for general release to customers. In most instances, the Company's products are released soon after technological feasibility has been established; therefore, software development costs incurred subsequent to achievement of technological feasibility are usually not significant, and generally, most software development costs have been expensed as incurred.
Impairment of Long-Lived Assets
IMPAIRMENT OF LONG-LIVED ASSETS
The Company reviews the carrying value of long-lived assets or asset groups to be used in operations whenever events or changes in circumstances indicate the carrying amount of the assets might not be recoverable. Factors that would necessitate an impairment assessment include a significant adverse change in the extent or manner in which an asset is used, a significant adverse change in legal factors or the business climate that could affect the value of the asset or a significant decline in the observable market value of an asset, among others. If such facts indicate a potential impairment, the Company would assess the recoverability of an asset group by determining if the carrying value of the asset group exceeds the sum of the projected undiscounted cash flows expected to result from the use and eventual disposition of the assets over the remaining economic life of the primary asset in the asset group. If the recoverability test indicates that the carrying value of the asset group is not recoverable, the Company will estimate the fair value of the asset group using appropriate valuation methodologies, which would typically include an estimate of discounted cash flows. Any impairment would be measured as the difference between the asset group's carrying amount and its estimated fair value.
Goodwill and Indefinite-Lived Intangible Assets
GOODWILL AND INDEFINITE-LIVED INTANGIBLE ASSETS
The Company performs annual impairment tests on goodwill and intangible assets with indefinite lives in the fourth quarter of each fiscal year or when events occur or circumstances change that would, more likely than not, reduce the fair value of a reporting unit or an intangible asset with an indefinite life below its carrying value.
For purposes of testing goodwill for impairment, the Company allocates goodwill across its reporting units, which are considered the Company's operating segments. For both goodwill and indefinite-lived intangible assets, which primarily consist of acquired trade names and trademarks, the Company may first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit or an intangible asset with an indefinite life is less than its carrying amount. If, after assessing the totality of events and circumstances, the Company determines it is more likely than not that the fair value of a reporting unit or indefinite-lived intangible asset is greater than its carrying amount, an impairment test is unnecessary.
If an impairment test is necessary, the Company will estimate the fair value of the related reporting unit or indefinite-lived intangible asset. If the carrying value of a reporting unit or indefinite-lived intangible asset exceeds its fair value, the goodwill of that reporting unit or indefinite-lived intangible asset is determined to be impaired and the Company will record an impairment charge equal to the excess of the carrying value over the related fair value.
There were no accumulated impairment losses as of May 31, 2023 and 2022. Additionally, the impact to Goodwill as a result of acquisitions and divestitures during fiscal 2023 and 2022, was not material.
Operating Leases
OPERATING LEASES
The Company primarily leases retail store space, certain distribution and warehouse facilities, office space, equipment and other non-real estate assets. The Company determines if an arrangement is a lease at inception and begins recording lease activity at the commencement date, which is generally the date in which the Company takes possession of or controls the physical use of the asset. Lease components are not separated from non-lease components for real estate leases within the Company's lease portfolio. Right-of-use ("ROU") assets and lease liabilities are recognized based on the present value of lease payments over the lease term with lease expense recognized on a straight-line basis. The Company's incremental borrowing rate is used to determine the present value of future lease payments unless the implicit rate is readily determinable.
Lease agreements may contain rent escalation clauses, renewal or termination options, rent holidays or certain landlord incentives, including tenant improvement allowances. ROU assets include amounts for scheduled rent increases and are reduced by the amount of lease incentives. The lease term includes the non-cancelable period of the lease and options to extend or terminate the lease when it is reasonably certain the Company will exercise those options. The Company does not record leases with an initial term of 12 months or less on the Consolidated Balance Sheets and recognizes related lease payments in the Consolidated Statements of Income on a straight-line basis over the lease term. Certain lease agreements include variable lease payments, which are based on a percent of retail sales over specified levels or adjust periodically for inflation as a result of changes in a published index, primarily the Consumer Price Index, and are expensed as incurred.
Fair Value Measurements
FAIR VALUE MEASUREMENTS
The Company measures certain financial assets and liabilities at fair value on a recurring basis, including derivatives, equity securities and available-for-sale debt securities. Fair value is the price the Company would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. The Company uses a three-level hierarchy that prioritizes fair value measurements based on the types of inputs used, as follows:
Level 1: Quoted prices in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.
Level 3: Unobservable inputs with little or no market data available, which require the reporting entity to develop its own assumptions.
The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Financial assets and liabilities are classified in their entirety based on the most conservative level of input that is significant to the fair value measurement.
Pricing vendors are utilized for a majority of Level 1 and Level 2 investments. These vendors either provide a quoted market price in an active market or use observable inputs without applying significant adjustments in their pricing. Observable inputs include broker quotes, interest rates and yield curves observable at commonly quoted intervals, volatilities and credit risks. The fair value of derivative contracts is determined using observable market inputs such as the daily market foreign currency rates, forward pricing curves, currency volatilities, currency correlations and interest rates and considers nonperformance risk of the Company and its counterparties.
The Company's fair value measurement process includes comparing fair values to another independent pricing vendor to ensure appropriate fair values are recorded.
Foreign Currency Translation and Foreign Currency Transactions
FOREIGN CURRENCY TRANSLATION AND FOREIGN CURRENCY TRANSACTIONS
Adjustments resulting from translating foreign functional currency financial statements into U.S. Dollars are included in the foreign currency translation adjustment, a component of Accumulated other comprehensive income (loss).
The Company's global subsidiaries have various monetary assets and liabilities, primarily receivables and payables, which are denominated in currencies other than their functional currency. These balance sheet items are subject to remeasurement, the impact of which is recorded in Other (income) expense, net, within the Consolidated Statements of Income.
Accounting for Derivatives and Hedging Activities ACCOUNTING FOR DERIVATIVES AND HEDGING ACTIVITIESThe Company uses derivative financial instruments to reduce its exposure to changes in foreign currency exchange rates and interest rates. All derivatives are recorded at fair value on the Consolidated Balance Sheets and changes in the fair value of derivative financial instruments are either recognized in Accumulated other comprehensive income (loss), Long-term debt or Net income depending on the nature of the underlying exposure, whether the derivative is formally designated as a hedge and, if designated, the extent to which the hedge is effective. The Company classifies the cash flows at settlement from derivatives in the same category as the cash flows from the related hedged items. For undesignated hedges and designated cash flow hedges, this is primarily within the Cash provided by operations component of the Consolidated Statements of Cash Flows. For designated net investment hedges, this is within the Cash provided by investing activities component of the Consolidated Statements of Cash Flows. For the Company's fair value hedges, which are interest rate swaps used to mitigate the change in fair value of its fixed-rate debt attributable to changes in interest rates, the related cash flows from periodic interest payments are reflected within the Cash provided by operations component of the Consolidated Statements of Cash Flows.
Stock-Based Compensation
STOCK-BASED COMPENSATION
The Company accounts for stock-based compensation by estimating the fair value, net of estimated forfeitures, of equity awards and recognizing the related expense as Cost of sales or Operating overhead expense, as applicable, in the Consolidated Statements of Income on a straight-line basis over the vesting period. Substantially all awards vest ratably over four years of continued employment, with stock options expiring 10 years from the date of grant. Performance-based restricted stock units vest based on the Company's achievement of certain performance criteria throughout the three-year performance period and continued employment through the vesting date. The fair value of options, stock appreciation rights and employees' purchase rights under the employee stock purchase plans ("ESPPs") is determined using the Black-Scholes option pricing model. The fair value of restricted stock and time-vesting restricted stock units is established by the market price on the date of grant. The fair value of performance-based restricted stock units is estimated as of the grant date using a Monte Carlo simulation.
From time to time, the Company's Board of Directors authorizes share repurchase programs for the repurchase of Class B Common Stock. The value of repurchased shares is deducted from Total shareholders' equity through allocation to Capital in excess of stated value and Retained earnings.
Income Taxes
INCOME TAXES
The Company accounts for income taxes using the asset and liability method. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. The Company records a valuation allowance to reduce deferred tax assets to the amount management believes is more likely than not to be realized. Realization of deferred tax assets is dependent on future taxable earnings and is therefore uncertain. At least quarterly, the Company assesses taxable income in prior carryback periods, the scheduled reversal of deferred tax liabilities, projected future taxable income and available tax planning strategies. The Company uses forecasts of taxable income and considers foreign tax credit utilization in making this assessment of realization, which are inherently uncertain and can result in significant variation between estimated and actual results. To the extent the Company believes that recovery is not likely, a valuation allowance is established against the net deferred tax asset, which increases the Company's income tax expense in the period when such determination is made.
The Company recognizes a tax benefit from uncertain tax positions in the financial statements only when it is more likely than not the position will be sustained upon examination by relevant tax authorities. The Company recognizes interest and penalties related to income tax matters in Income tax expense.
Earnings Per Share
EARNINGS PER SHARE
Basic earnings per common share is calculated by dividing Net income by the weighted average number of common shares outstanding during the year. Diluted earnings per common share is calculated by adjusting weighted average outstanding shares, assuming conversion of all potentially dilutive stock options and awards.
Management Estimates MANAGEMENT ESTIMATESThe preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates, including estimates relating to assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Additionally, the macroeconomic environment could remain volatile as the risk exists that worsening macroeconomic conditions could have a material, adverse impact on future revenue growth as well as overall profitability.
Hedging Derivatives
CASH FLOW HEDGES
All changes in fair value of derivatives designated as cash flow hedge instruments are recorded in Accumulated other comprehensive income (loss) until Net income is affected by the variability of cash flows of the hedged transaction. Effective hedge results are classified in the Consolidated Statements of Income in the same manner as the underlying exposure. When it is no longer probable the forecasted hedged transaction will occur in the initially identified time period, hedge accounting is discontinued and the Company accounts for the associated derivative as an undesignated instrument as discussed below. Additionally, the gains and losses associated with derivatives no longer designated as cash flow hedge instruments in Accumulated other comprehensive income (loss) are recognized immediately in Other (income) expense, net, if it is probable the forecasted hedged transaction will not occur by the end of the initially identified time period or within an additional two-month period thereafter. In rare circumstances, the additional period of time may exceed two months due to extenuating circumstances related to the nature of the forecasted transaction that are outside the control or influence of the Company.
The purpose of the Company's foreign exchange risk management program is to lessen both the positive and negative effects of currency fluctuations on the Company's consolidated results of operations, financial position and cash flows. Foreign currency exposures the Company may elect to hedge in this manner include product costs, non-functional currency denominated revenues, intercompany revenues, demand creation expenses, investments in U.S. Dollar denominated available-for-sale debt securities and certain other intercompany transactions.
Product cost foreign currency exposures are primarily generated through non-functional currency denominated product purchases. NIKE entities primarily purchase product in two ways: (1) Certain NIKE entities purchase product from the NIKE Trading Company ("NTC"), a wholly-owned sourcing hub that buys NIKE branded products from third-party factories, predominantly in U.S. Dollars. The NTC, whose functional currency is the U.S. Dollar, then sells the product to NIKE entities in their respective functional currencies. NTC sales to a NIKE entity with a different functional currency result in a foreign currency
exposure for the NTC. (2) Other NIKE entities purchase product directly from third-party factories in U.S. Dollars. These purchases generate a foreign currency exposure for those NIKE entities with a functional currency other than the U.S. Dollar.The Company's policy permits the utilization of derivatives to reduce its foreign currency exposures where internal netting or other strategies cannot be effectively employed. Typically, the Company may enter into hedge contracts starting up to 12 to 24 months in advance of the forecasted transaction and may place incremental hedges up to 100% of the exposure by the time the forecasted transaction occurs.FAIR VALUE HEDGESThe Company has, in the past, been exposed to the risk of changes in the fair value of certain fixed-rate debt attributable to changes in interest rates. Derivatives used by the Company to hedge this risk are receive-fixed, pay-variable interest rate swaps. NET INVESTMENT HEDGESThe Company has, in the past, hedged and may, in the future, hedge the risk of variability in foreign currency-denominated net investments in wholly-owned international operations. All changes in fair value of the derivatives designated as net investment hedges are reported in Accumulated other comprehensive income (loss) along with the foreign currency translation adjustments on those investments.
Undesignated Derivative Instruments UNDESIGNATED DERIVATIVE INSTRUMENTSThe Company may elect to enter into foreign exchange forwards to mitigate the change in fair value of specific assets and liabilities on the Consolidated Balance Sheets. These undesignated instruments are recorded at fair value as a derivative asset or liability on the Consolidated Balance Sheets with their corresponding change in fair value recognized in Other (income) expense, net, together with the remeasurement gain or loss from the hedged balance sheet position.
Recently Issued Accounting Standards RECENTLY ISSUED ACCOUNTING STANDARDSIn September 2022, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") ASU 2022-04, Liabilities — Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations, which enhances transparency surrounding the use of supplier finance programs. The new guidance requires qualitative and quantitative disclosure sufficient to enable users of the financial statements to understand the nature, activity during the period, changes from period to period and potential magnitude of such programs. The amendments are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal periods, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. The Company will adopt the required guidance in the first quarter of fiscal 2024 and is currently evaluating the ASU to determine its impact on the Company's disclosures
v3.23.2
Property, Plant and Equipment (Tables)
12 Months Ended
May 31, 2023
Property, Plant and Equipment [Abstract]  
Schedule of Property, Plant and Equipment
Property, plant and equipment, net included the following:
MAY 31,
(Dollars in millions)
20232022
Land and improvements$326 $330 
Buildings3,293 3,170 
Machinery and equipment3,083 2,870 
Internal-use software1,612 1,616 
Leasehold improvements1,876 1,712 
Construction in process525 399 
Total property, plant and equipment, gross10,715 10,097 
Less accumulated depreciation5,634 5,306 
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET$5,081 $4,791 
v3.23.2
Accrued Liabilities (Tables)
12 Months Ended
May 31, 2023
Accrued Liabilities, Current [Abstract]  
Schedule of Accrued Liabilities
Accrued liabilities included the following:
MAY 31,
(Dollars in millions)
20232022
Compensation and benefits, excluding taxes$1,737 $1,297 
Sales-related reserves 994 1,015 
Endorsement compensation552 496 
Dividends payable529 485 
Allowance for expected loss on sale(1)
— 397 
Other1,911 2,530 
Total Accrued Liabilities$5,723 $6,220 
(1)Refer to Note 18 — Acquisitions and Divestitures for additional information.
v3.23.2
Fair Value Measurements (Tables)
12 Months Ended
May 31, 2023
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following tables present information about the Company's financial assets measured at fair value on a recurring basis as of May 31, 2023 and 2022, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement. Refer to Note 1 — Summary of Significant Accounting Policies for additional detail regarding the Company's fair value measurement methodology.
MAY 31, 2023
(Dollars in millions)
ASSETS AT FAIR VALUECASH AND EQUIVALENTSSHORT-TERM INVESTMENTS
Cash$1,767 $1,767 $— 
Level 1:
U.S. Treasury securities2,655 — 2,655 
Level 2:
Commercial paper and bonds543 15 528 
Money market funds5,157 5,157 — 
Time deposits507 502 
U.S. Agency securities46 — 46 
Total Level 26,253 5,674 579 
TOTAL$10,675 $7,441 $3,234 
MAY 31, 2022
(Dollars in millions)
ASSETS AT FAIR VALUECASH AND EQUIVALENTSSHORT-TERM INVESTMENTS
Cash$839 $839 $— 
Level 1:
U.S. Treasury securities3,801 3,793 
Level 2:
Commercial paper and bonds660 37 623 
Money market funds6,458 6,458 — 
Time deposits1,237 1,232 
U.S. Agency securities— 
Total Level 28,357 7,727 630 
TOTAL$12,997 $8,574 $4,423 
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:
MAY 31, 2023
DERIVATIVE ASSETSDERIVATIVE LIABILITIES
(Dollars in millions)ASSETS AT FAIR VALUEOTHER CURRENT ASSETSOTHER LONG-TERM ASSETSLIABILITIES AT FAIR VALUEACCRUED LIABILITIESOTHER LONG-TERM LIABILITIES
Level 2:
Foreign exchange forwards and options(1)
$557 $493 $64 $180 $128 $52 
(1)If the foreign exchange derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $178 million as of May 31, 2023. As of that date, the Company received $36 million of cash collateral from various counterparties related to foreign exchange derivative instruments. No amount of collateral was posted on the derivative liability balance as of May 31, 2023.
MAY 31, 2022
DERIVATIVE ASSETSDERIVATIVE LIABILITIES
(Dollars in millions)
ASSETS AT FAIR VALUEOTHER CURRENT ASSETSOTHER LONG-TERM ASSETSLIABILITIES AT FAIR VALUEACCRUED LIABILITIESOTHER LONG-TERM LIABILITIES
Level 2:
Foreign exchange forwards and options and embedded derivatives(1)
$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 had received $486 million of cash collateral from various counterparties related to foreign exchange derivative instruments. No amount of collateral was posted on the Company's derivative liability balance as of May 31, 2022.
The following tables present the fair values of derivative instruments included within the Consolidated Balance Sheets:
 DERIVATIVE ASSETS
BALANCE SHEET LOCATIONMAY 31,
(Dollars in millions)
20232022
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and optionsPrepaid expenses and other current assets$480 $639 
Foreign exchange forwards and optionsDeferred income taxes and other assets64 206 
Total derivatives formally designated as hedging instruments544 845 
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options and embedded derivativesPrepaid expenses and other current assets13 35 
Total derivatives not designated as hedging instruments13 35 
TOTAL DERIVATIVE ASSETS$557 $880 


 DERIVATIVE LIABILITIES
BALANCE SHEET LOCATIONMAY 31,
(Dollars in millions)
20232022
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and optionsAccrued liabilities$93 $37 
Foreign exchange forwards and optionsDeferred income taxes and other liabilities52 11 
Total derivatives formally designated as hedging instruments145 48 
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options and embedded derivativesAccrued liabilities35 29 
Total derivatives not designated as hedging instruments35 29 
TOTAL DERIVATIVE LIABILITIES$180 $77 
v3.23.2
Long-Term Debt (Tables)
12 Months Ended
May 31, 2023
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments
Long-term debt, net of unamortized premiums, discounts and debt issuance costs, comprises the following: 
BOOK VALUE OUTSTANDING
AS OF MAY 31,
Scheduled Maturity (Dollars in millions)
ORIGINAL PRINCIPALINTEREST RATEINTEREST PAYMENTS20232022
Corporate Term Debt:(1)(2)
May 1, 2023$500 2.25 %Semi-Annually$— $500 
March 27, 20251,000 2.40 %Semi-Annually998 996 
November 1, 20261,000 2.38 %Semi-Annually997 997 
March 27, 20271,000 2.75 %Semi-Annually997 996 
March 27, 20301,500 2.85 %Semi-Annually1,492 1,491 
March 27, 20401,000 3.25 %Semi-Annually987 986 
May 1, 2043500 3.63 %Semi-Annually496 496 
November 1, 20451,000 3.88 %Semi-Annually986 985 
November 1, 2046500 3.38 %Semi-Annually492 492 
March 27, 20501,500 3.38 %Semi-Annually1,482 1,481 
Total8,927 9,420 
Less Current Portion of Long-Term Debt— 500 
TOTAL LONG-TERM DEBT$8,927 $8,920 
(1)These senior unsecured obligations rank equally with the Company's other unsecured and unsubordinated indebtedness.
(2)The bonds are redeemable at the Company's option at a price equal to the greater of (i) 100% of the aggregate principal amount of the notes to be redeemed or (ii) the sum of the present values of the remaining scheduled payments, plus in each case, accrued and unpaid interest. However, the bonds also feature a par call provision, which allows for the bonds to be redeemed at a price equal to 100% of the aggregate principal amount of the notes being redeemed, plus accrued and unpaid interest on or after the Par Call Date, as defined in the respective notes.
v3.23.2
Income Taxes (Tables)
12 Months Ended
May 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
Income before income taxes is as follows:
YEAR ENDED MAY 31,
(Dollars in millions)
202320222021
Income before income taxes:
United States$4,663 $6,020 $5,723 
Foreign1,538 631 938 
TOTAL INCOME BEFORE INCOME TAXES$6,201 $6,651 $6,661 
Schedule of Components of Income Tax Expense (Benefit)
The provision for income taxes is as follows:
YEAR ENDED MAY 31,
(Dollars in millions)
202320222021
Current:
United States
Federal$430 $231 $328 
State184 98 134 
Foreign634 926 857 
Total Current1,248 1,255 1,319 
Deferred:
United States
Federal(162)(522)(371)
State(25)(16)(34)
Foreign70 (112)20 
Total Deferred(117)(650)(385)
TOTAL INCOME TAX EXPENSE$1,131 $605 $934 
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation from the U.S. statutory federal income tax rate to the effective income tax rate is as follows:
 YEAR ENDED MAY 31,
202320222021
Federal income tax rate21.0 %21.0 %21.0 %
State taxes, net of federal benefit1.5 %1.4 %1.3 %
Foreign earnings1.7 %-1.8 %0.2 %
Subpart F deferred tax benefit0.0 %-4.7 %0.0 %
Foreign-derived intangible income benefit-6.1 %-4.1 %-3.7 %
Excess tax benefits from stock-based compensation-1.1 %-4.9 %-4.5 %
Income tax audits and contingency reserves1.0 %1.5 %1.5 %
U.S. research and development tax credit-1.2 %-1.0 %-0.9 %
Other, net1.4 %1.7 %-0.9 %
EFFECTIVE INCOME TAX RATE18.2 %9.1 %14.0 %
Schedule of Deferred Tax Assets and Liabilities
Deferred tax assets and liabilities comprise the following as of: 
MAY 31,
(Dollars in millions)
20232022
Deferred tax assets:
Inventories(1)
$79 $136 
Sales return reserves(1)
89 109 
Deferred compensation(1)
321 313 
Stock-based compensation261 195 
Reserves and accrued liabilities(1)
144 145 
Operating lease liabilities511 508 
Intangibles255 275 
Capitalized research and development expenditures 548 353 
Net operating loss carry-forwards15 
Subpart F deferred tax374 313 
Foreign tax credit carry-forward— 103 
Other(1)
183 148 
Total deferred tax assets2,780 2,606 
Valuation allowance(22)(19)
Total deferred tax assets after valuation allowance2,758 2,587 
Deferred tax liabilities:
Foreign withholding tax on undistributed earnings of foreign subsidiaries(186)(146)
Property, plant and equipment(1)
(276)(247)
Right-of-use assets(441)(437)
Other(1)
(56)(92)
Total deferred tax liabilities(959)(922)
NET DEFERRED TAX ASSET (2)
$1,799 $1,665 
(1)The above amounts exclude deferred taxes held-for-sale as of May 31, 2022. See Note 18 — Acquisitions and Divestitures for additional information.
(2)Of the total $1,799 million net deferred tax asset for the period ended May 31, 2023, $2,026 million was included within Deferred income taxes and other assets and $(227) million was included within Deferred income taxes and other liabilities on the Consolidated Balance Sheets. Of the total $1,665 million net deferred tax asset for the period ended May 31, 2022, $1,891 million was included within Deferred income taxes and other assets and $(226) million was included within Deferred income taxes and other liabilities on the Consolidated Balance Sheets.
Unrecognized Tax Benefits Reconciliation
The following is a reconciliation of the changes in the gross balance of unrecognized tax benefits as of:
 MAY 31,
(Dollars in millions)
202320222021
Unrecognized tax benefits, beginning of the period$848 $896 $771 
Gross increases related to prior period tax positions95 71 77 
Gross decreases related to prior period tax positions(17)(145)(22)
Gross increases related to current period tax positions50 62 59 
Settlements(18)(17)(5)
Lapse of statute of limitations(7)(10)(6)
Changes due to currency translation(15)(9)22 
UNRECOGNIZED TAX BENEFITS, END OF THE PERIOD$936 $848 $896 
v3.23.2
Common Stock and Stock-Based Compensation (Tables)
12 Months Ended
May 31, 2023
Share-Based Payment Arrangement, Noncash Expense [Abstract]  
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award
The following table summarizes the Company's total stock-based compensation expense recognized in Cost of sales or Operating overhead expense, as applicable: 
 YEAR ENDED MAY 31,
(Dollars in millions)
202320222021
Stock options(1)
$311 $297 $323 
ESPPs72 60 63 
Restricted stock and restricted stock units(1)(2)
372 281 225 
TOTAL STOCK-BASED COMPENSATION EXPENSE$755 $638 $611 
(1)Expense for stock options includes the expense associated with stock appreciation rights. Accelerated stock option expense is primarily recorded for employees meeting certain retirement eligibility requirements and was $64 million, $57 million and $67 million for the fiscal years ended May 31, 2023, 2022 and 2021, respectively. During fiscal 2021, an immaterial amount of accelerated stock option and restricted stock unit expense was also recorded for certain employees impacted by the Company's organizational realignment. For more information, see Note 19 — Restructuring.
(2)For the fiscal years ended May 31, 2023 and 2022, expense for restricted stock units includes an immaterial amount of expense for PSUs.
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions The weighted average assumptions used to estimate these fair values were as follows:
 YEAR ENDED MAY 31,
202320222021
Dividend yield0.9 %0.8 %0.9 %
Expected volatility27.1 %24.9 %27.3 %
Weighted average expected life (in years)5.85.86.0
Risk-free interest rate3.3 %0.9 %0.4 %
Schedule of Share-based Compensation, Stock Options, Activity
The following summarizes the stock option transactions under the plan discussed above: 
SHARES(1)
WEIGHTED AVERAGE OPTION PRICE
(In millions)
Options outstanding as of May 31, 202268.0 $88.66 
Exercised(7.5)57.11 
Forfeited(1.5)122.93 
Granted12.0 107.44 
Options outstanding as of May 31, 202371.0 $94.40 
(1)Includes stock appreciation rights transactions.
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity
The following summarizes the restricted stock and restricted stock units transactions under the plan discussed above: 
SHARES(1)
WEIGHTED AVERAGE GRANT DATE
FAIR VALUE
(In millions)
Nonvested as of May 31, 20226.7 $130.88
Vested(2.2)114.85
Forfeited(0.7)131.10
Granted4.5 115.56
Nonvested as of May 31, 20238.3 $126.97
(1) Includes an immaterial amount of PSU transactions
v3.23.2
Earnings Per Share (Tables)
12 Months Ended
May 31, 2023
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted The following is a reconciliation from basic earnings per common share to diluted earnings per common share. The computations of diluted earnings per common share excluded restricted stock, restricted stock units and options, including shares under ESPPs, to purchase an estimated additional 31.7 million, 9.4 million and 11.3 million shares of common stock outstanding for the fiscal years ended May 31, 2023, 2022 and 2021, respectively, because the awards were assumed to be anti-dilutive.
 YEAR ENDED MAY 31,
(In millions, except per share data)
202320222021
Net income available to common stockholders$5,070 $6,046 $5,727 
Determination of shares:
Weighted average common shares outstanding1,551.6 1,578.8 1,573.0 
Assumed conversion of dilutive stock options and awards18.2 32.0 36.4 
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING1,569.8 1,610.8 1,609.4 
Earnings per common share:
Basic$3.27 $3.83 $3.64 
Diluted$3.23 $3.75 $3.56 
v3.23.2
Risk Management and Derivatives (Tables)
12 Months Ended
May 31, 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:
MAY 31, 2023
DERIVATIVE ASSETSDERIVATIVE LIABILITIES
(Dollars in millions)ASSETS AT FAIR VALUEOTHER CURRENT ASSETSOTHER LONG-TERM ASSETSLIABILITIES AT FAIR VALUEACCRUED LIABILITIESOTHER LONG-TERM LIABILITIES
Level 2:
Foreign exchange forwards and options(1)
$557 $493 $64 $180 $128 $52 
(1)If the foreign exchange derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $178 million as of May 31, 2023. As of that date, the Company received $36 million of cash collateral from various counterparties related to foreign exchange derivative instruments. No amount of collateral was posted on the derivative liability balance as of May 31, 2023.
MAY 31, 2022
DERIVATIVE ASSETSDERIVATIVE LIABILITIES
(Dollars in millions)
ASSETS AT FAIR VALUEOTHER CURRENT ASSETSOTHER LONG-TERM ASSETSLIABILITIES AT FAIR VALUEACCRUED LIABILITIESOTHER LONG-TERM LIABILITIES
Level 2:
Foreign exchange forwards and options and embedded derivatives(1)
$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 had received $486 million of cash collateral from various counterparties related to foreign exchange derivative instruments. No amount of collateral was posted on the Company's derivative liability balance as of May 31, 2022.
The following tables present the fair values of derivative instruments included within the Consolidated Balance Sheets:
 DERIVATIVE ASSETS
BALANCE SHEET LOCATIONMAY 31,
(Dollars in millions)
20232022
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and optionsPrepaid expenses and other current assets$480 $639 
Foreign exchange forwards and optionsDeferred income taxes and other assets64 206 
Total derivatives formally designated as hedging instruments544 845 
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options and embedded derivativesPrepaid expenses and other current assets13 35 
Total derivatives not designated as hedging instruments13 35 
TOTAL DERIVATIVE ASSETS$557 $880 


 DERIVATIVE LIABILITIES
BALANCE SHEET LOCATIONMAY 31,
(Dollars in millions)
20232022
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and optionsAccrued liabilities$93 $37 
Foreign exchange forwards and optionsDeferred income taxes and other liabilities52 11 
Total derivatives formally designated as hedging instruments145 48 
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options and embedded derivativesAccrued liabilities35 29 
Total derivatives not designated as hedging instruments35 29 
TOTAL DERIVATIVE LIABILITIES$180 $77 
Schedule of Derivative Instruments, Gain (Loss) In Statement of Income
The following table presents the amounts in the Consolidated Statements of Income in which the effects of cash flow hedges are recorded and the effects of cash flow hedge activity on these line items for the fiscal years ended May 31, 2023, 2022 and 2021:
YEAR ENDED MAY 31,
202320222021
(Dollars in millions)
TOTALAMOUNT OF
GAIN (LOSS)
ON CASH FLOW
HEDGE ACTIVITY
TOTALAMOUNT OF
GAIN (LOSS)
ON CASH FLOW
HEDGE ACTIVITY
TOTALAMOUNT OF
GAIN (LOSS)
ON CASH FLOW
HEDGE ACTIVITY
Revenues$51,217 $26 $46,710 $(82)$44,538 $45 
Cost of sales28,925 581 25,231 (23)24,576 51 
Demand creation expense4,060 (5)3,850 3,114 
Other (income) expense, net(280)338 (181)130 14 (47)
Interest expense (income), net(6)(8)205 (7)262 (7)
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance
The following tables present the amounts affecting the Consolidated Statements of Income for the years ended May 31, 2023, 2022 and 2021:

(Dollars in millions)
AMOUNT OF GAIN (LOSS)
RECOGNIZED IN OTHER
COMPREHENSIVE INCOME (LOSS) ON DERIVATIVES
(1)
AMOUNT OF GAIN (LOSS)
RECLASSIFIED FROM ACCUMULATED
OTHER COMPREHENSIVE
INCOME (LOSS) INTO INCOME
(1)
YEAR ENDED MAY 31,LOCATION OF GAIN (LOSS)
RECLASSIFIED FROM ACCUMULATED
OTHER COMPREHENSIVE INCOME
(LOSS) INTO INCOME
YEAR ENDED MAY 31,
202320222021202320222021
Derivatives designated as
cash flow hedges:
Foreign exchange forwards
and options
$16 $(39)$(61)Revenues$26 $(82)$45 
Foreign exchange forwards
and options
305 889 (563)Cost of sales581 (23)51 
Foreign exchange forwards
and options
(1)(6)Demand creation expense(5)
Foreign exchange forwards
and options
207 492 (163)Other (income) expense, net338 130 (47)
Interest rate swaps(2)
— — — Interest expense (income), net(8)(7)(7)
Total designated cash
flow hedges
$527 $1,336 $(782)$932 $19 $45 
(1)For the fiscal years ended May 31, 2023, 2022, and 2021, 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
YEAR ENDED MAY 31,
(Dollars in millions)
202320222021
Derivatives designated as hedging instruments:
Foreign exchange forwards and options and embedded derivatives$28 $38 $(167)Other (income) expense, net
v3.23.2
Accumulated Other Comprehensive Income (Loss) (Tables)
12 Months Ended
May 31, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Schedule of Accumulated Other Comprehensive Income
The changes in Accumulated other comprehensive income (loss), net of tax, were as follows:
(Dollars in millions)
FOREIGN CURRENCY TRANSLATION ADJUSTMENT(1)
CASH FLOW HEDGES
NET INVESTMENT HEDGES(1)
OTHERTOTAL
Balance at May 31, 2022$(520)$779 $115 $(56)$318 
Other comprehensive income (loss):
Other comprehensive gains (losses) before reclassifications(2)
(91)487 — (20)376 
Reclassifications to net income of previously deferred (gains) losses(3)
358(835)— 14(463)
Total other comprehensive income (loss)267 (348)— (6)(87)
Balance at May 31, 2023$(253)$431 $115 $(62)$231 
(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, $(40) million, $0 million, $6 million and $(34) million, respectively.
(3)Net of tax (benefit) expense of $(16) million, $97 million, $0 million, $(5) million and $76 million, respectively.
(Dollars in millions)
FOREIGN CURRENCY TRANSLATION ADJUSTMENT(1)
CASH FLOW HEDGES
NET INVESTMENT HEDGES(1)
OTHERTOTAL
Balance at May 31, 2021$2 $(435)$115 $(62)$(380)
Other comprehensive income (loss):
Other comprehensive gains (losses) before reclassifications(2)
(522)1,222 — 28 728 
Reclassifications to net income of previously deferred (gains) losses(3)
— (8)— (22)(30)
Total other comprehensive income (loss)(522)1,214 — 698 
Balance at May 31, 2022$(520)$779 $115 $(56)$318 
(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, $(114) million, $0 million, $(9) million and $(123) million, respectively.
(3)Net of tax (benefit) expense of $0 million, $11 million, $0 million, $9 million and $20 million, respectively.
Reclassification Out of Accumulated Other Comprehensive Income
The following table summarizes the reclassifications from Accumulated other comprehensive income (loss) to the Consolidated Statements of Income:
AMOUNT OF GAIN (LOSS)
RECLASSIFIED FROM ACCUMULATED
OTHER COMPREHENSIVE INCOME
(LOSS) INTO INCOME
LOCATION OF GAIN (LOSS)
RECLASSIFIED FROM ACCUMULATED
OTHER COMPREHENSIVE INCOME
(LOSS) INTO INCOME
YEAR ENDED MAY 31,
(Dollars in millions)
20232022
Gains (losses) on foreign currency translation adjustment$(374)$— Other (income) expense, net
Total before tax(374)— 
Tax (expense) benefit16— 
Gain (loss) net of tax(358) 
Gains (losses) on cash flow hedges:
Foreign exchange forwards and options26 (82)Revenues
Foreign exchange forwards and options581 (23)Cost of sales
Foreign exchange forwards and options(5)Demand creation expense
Foreign exchange forwards and options338 130 Other (income) expense, net
Interest rate swaps(8)(7)Interest expense (income), net
Total before tax93219 
Tax (expense) benefit(97)(11)
Gain (loss) net of tax8358 
Gains (losses) on other(19)31 Other (income) expense, net
Total before tax(19)31 
Tax (expense) benefit5(9)
Gain (loss) net of tax(14)22 
Total net gain (loss) reclassified for the period$463 $30 
v3.23.2
Revenues (Tables)
12 Months Ended
May 31, 2023
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
The following tables present the Company's Revenues disaggregated by reportable operating segment, major product line and distribution channel:
YEAR ENDED MAY 31, 2023
(Dollars in millions)
NORTH AMERICAEUROPE, MIDDLE EAST & AFRICAGREATER CHINA
ASIA PACIFIC & LATIN AMERICA(1)
GLOBAL BRAND DIVISIONSTOTAL NIKE BRANDCONVERSECORPORATETOTAL NIKE, INC.
Revenues by:
Footwear$14,897 $8,260 $5,435 $4,543 $— $33,135 $2,155 $— $35,290 
Apparel5,947 4,566 1,666 1,664 — 13,843 90 — 13,933 
Equipment764 592 147 224 — 1,727 28 — 1,755 
Other— — — — 58 58 154 27 239 
TOTAL REVENUES$21,608 $13,418 $7,248 $6,431 $58 $48,763 $2,427 $27 $51,217 
Revenues by:
Sales to Wholesale Customers$11,273 $8,522 $3,866 $3,736 $— $27,397 $1,299 $— $28,696 
Sales through Direct to Consumer10,335 4,896 3,382 2,695 — 21,308 974 — 22,282 
Other— — — — 58 58 154 27 239 
TOTAL REVENUES$21,608 $13,418 $7,248 $6,431 $58 $48,763 $2,427 $27 $51,217 
(1)Refer to Note 18 — Acquisitions and Divestitures for additional information on the transition of the Company's NIKE Brand businesses in its CASA territory to third-party distributors.

YEAR ENDED MAY 31, 2022
(Dollars in millions)
NORTH AMERICAEUROPE, MIDDLE EAST & AFRICAGREATER CHINAASIA PACIFIC & LATIN AMERICAGLOBAL BRAND DIVISIONSTOTAL NIKE BRANDCONVERSECORPORATETOTAL NIKE, INC.
Revenues by:
Footwear$12,228 $7,388 $5,416 $4,111 $— $29,143 $2,094 $— $31,237 
Apparel5,492 4,527 1,938 1,610 — 13,567 103 — 13,670 
Equipment633 564 193 234 — 1,624 26 — 1,650 
Other— — — — 102 102 123 (72)153 
TOTAL REVENUES$18,353 $12,479 $7,547 $5,955 $102 $44,436 $2,346 $(72)$46,710 
Revenues by:
Sales to Wholesale Customers$9,621 $8,377 $4,081 $3,529 $— $25,608 $1,292 $— $26,900 
Sales through Direct to Consumer8,732 4,102 3,466 2,426 — 18,726 931 — 19,657 
Other— — — — 102 102 123 (72)153 
TOTAL REVENUES$18,353 $12,479 $7,547 $5,955 $102 $44,436 $2,346 $(72)$46,710 
YEAR ENDED MAY 31, 2021
(Dollars in millions)
NORTH AMERICAEUROPE, MIDDLE EAST & AFRICAGREATER CHINA
ASIA PACIFIC & LATIN AMERICA(1)
GLOBAL BRAND DIVISIONSTOTAL NIKE BRANDCONVERSECORPORATETOTAL NIKE, INC.
Revenues by:
Footwear$11,644 $6,970 $5,748 $3,659 $— $28,021 $1,986 $— $30,007 
Apparel5,028 3,996 2,347 1,494 — 12,865 104 — 12,969 
Equipment507 490 195 190 — 1,382 29 — 1,411 
Other— — — — 25 25 86 40 151 
TOTAL REVENUES$17,179 $11,456 $8,290 $5,343 $25 $42,293 $2,205 $40 $44,538 
Revenues by:
Sales to Wholesale Customers$10,186 $7,812 $4,513 $3,387 $— $25,898 $1,353 $— $27,251 
Sales through Direct to Consumer6,993 3,644 3,777 1,956 — 16,370 766 — 17,136 
Other— — — — 25 25 86 40 151 
TOTAL REVENUES$17,179 $11,456 $8,290 $5,343 $25 $42,293 $2,205 $40 $44,538 
v3.23.2
Operating Segments and Related Information (Tables)
12 Months Ended
May 31, 2023
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
YEAR ENDED MAY 31,
(Dollars in millions)
202320222021
REVENUES
North America$21,608 $18,353 $17,179 
Europe, Middle East & Africa13,418 12,479 11,456 
Greater China7,248 7,547 8,290 
Asia Pacific & Latin America6,431 5,955 5,343 
Global Brand Divisions58 102 25 
Total NIKE Brand48,763 44,436 42,293 
Converse2,427 2,346 2,205 
Corporate27 (72)40 
TOTAL NIKE, INC. REVENUES$51,217 $46,710 $44,538 
EARNINGS BEFORE INTEREST AND TAXES
North America$5,454 $5,114 $5,089 
Europe, Middle East & Africa3,531 3,293 2,435 
Greater China2,283 2,365 3,243 
Asia Pacific & Latin America1,932 1,896 1,530 
Global Brand Divisions(4,841)(4,262)(3,656)
Converse676 669 543 
Corporate(2,840)(2,219)(2,261)
Interest expense (income), net(6)205 262 
TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES$6,201 $6,651 $6,661 
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT
North America$283 $146 $98 
Europe, Middle East & Africa215 197 153 
Greater China56 78 94 
Asia Pacific & Latin America64 56 54 
Global Brand Divisions271 222 278 
Total NIKE Brand889 699 677 
Converse
Corporate140 103 107 
TOTAL ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT$1,036 $811 $791 
DEPRECIATION
North America$128 $124 $130 
Europe, Middle East & Africa120 134 136 
Greater China54 41 46 
Asia Pacific & Latin America42 42 43 
Global Brand Divisions211 220 222 
Total NIKE Brand555 561 577 
Converse17 22 26 
Corporate131 134 141 
TOTAL DEPRECIATION$703 $717 $744 
Reconciliation of Assets from Segment to Consolidated
AS OF MAY 31,
(Dollars in millions)
20232022
ACCOUNTS RECEIVABLE, NET
North America$1,653 $1,850 
Europe, Middle East & Africa1,197 1,351 
Greater China162 406 
Asia Pacific & Latin America(1)
700 664 
Global Brand Divisions96 113 
Total NIKE Brand3,808 4,384 
Converse235 230 
Corporate88 53 
TOTAL ACCOUNTS RECEIVABLE, NET$4,131 $4,667 
INVENTORIES
North America$3,806 $4,098 
Europe, Middle East & Africa2,167 1,887 
Greater China973 1,044 
Asia Pacific & Latin America(1)
894 686 
Global Brand Divisions232 197 
Total NIKE Brand8,072 7,912 
Converse305 279 
Corporate77 229 
TOTAL INVENTORIES$8,454 $8,420 
PROPERTY, PLANT AND EQUIPMENT, NET
North America$794 $639 
Europe, Middle East & Africa1,009 920 
Greater China292 303 
Asia Pacific & Latin America(1)
279 274 
Global Brand Divisions840 789 
Total NIKE Brand3,214 2,925 
Converse38 49 
Corporate1,829 1,817 
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET$5,081 $4,791 
(1)Excludes assets held-for-sale as of May 31, 2022. See Note 18 — Acquisitions and Divestitures for additional information.
Long-lived Assets by Geographic Areas Long-lived assets attributable to operations in these countries, which consist of property, plant and equipment, net and operating lease ROU assets, net, were as follows:
MAY 31,
(Dollars in millions)
20232022
United States$5,129 $4,916 
Belgium702 646 
China559 538 
v3.23.2
Leases (Tables)
12 Months Ended
May 31, 2023
Leases [Abstract]  
Lessee, Operating Lease, Liability, Maturity
The undiscounted cash flows for future maturities of the Company's operating lease liabilities and the reconciliation to the Operating lease liabilities recognized in the Company's Consolidated Balance Sheets are as follows:
(Dollars in millions)
AS OF MAY 31, 2023(1)
Fiscal 2024$506 
Fiscal 2025562 
Fiscal 2026490 
Fiscal 2027436 
Fiscal 2028369 
Thereafter1,225 
Total undiscounted future cash flows related to lease payments$3,588 
Less interest 377 
Present value of lease liabilities$3,211 
(1)Excludes $278 million as of May 31, 2023, of future operating lease payments for lease agreements signed but not yet commenced.
Lease, Cost
The following table includes supplemental information used to calculate the present value of Operating lease liabilities:
AS OF MAY 31,
20232022
Weighted-average remaining lease term (in years)7.57.8
Weighted-average discount rate2.5 %2.3 %
The following table includes supplemental cash and non-cash information related to operating leases:
YEAR ENDED MAY 31,
(Dollars in millions)
202320222021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$575 $589 $583 
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities$602 $537 $489 
v3.23.2
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)
12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Significant Accounting Policies [Line Items]      
Total advertising and promotion expenses $ 4,060,000,000 $ 3,850,000,000 $ 3,114,000,000
Prepaid advertising and promotion expenses 755,000,000 773,000,000  
Allowance for uncollectible accounts receivable 35,000,000 34,000,000  
Goodwill, impaired, accumulated impairment loss $ 0 0  
Performance-based Restricted Stock Units (PSUs)      
Significant Accounting Policies [Line Items]      
Stock options vesting period (in years) 3 years    
Stock Incentive Plan      
Significant Accounting Policies [Line Items]      
Stock options vesting period (in years) 4 years    
Stock options expiration from the date of grant (in years) 10 years    
Building | Minimum      
Significant Accounting Policies [Line Items]      
Property, plant and equipment, minimum useful life (in years) 2 years    
Building | Maximum      
Significant Accounting Policies [Line Items]      
Property, plant and equipment, minimum useful life (in years) 40 years    
Leasehold improvements | Minimum      
Significant Accounting Policies [Line Items]      
Property, plant and equipment, minimum useful life (in years) 2 years    
Leasehold improvements | Maximum      
Significant Accounting Policies [Line Items]      
Property, plant and equipment, minimum useful life (in years) 40 years    
Land Improvements | Minimum      
Significant Accounting Policies [Line Items]      
Property, plant and equipment, minimum useful life (in years) 2 years    
Land Improvements | Maximum      
Significant Accounting Policies [Line Items]      
Property, plant and equipment, minimum useful life (in years) 40 years    
Machinery and Equipment | Minimum      
Significant Accounting Policies [Line Items]      
Property, plant and equipment, minimum useful life (in years) 2 years    
Machinery and Equipment | Maximum      
Significant Accounting Policies [Line Items]      
Property, plant and equipment, minimum useful life (in years) 15 years    
Software and Software Development Costs | Minimum      
Significant Accounting Policies [Line Items]      
Property, plant and equipment, minimum useful life (in years) 2 years    
Software and Software Development Costs | Maximum      
Significant Accounting Policies [Line Items]      
Property, plant and equipment, minimum useful life (in years) 12 years    
Prepaid expenses and other current assets      
Significant Accounting Policies [Line Items]      
Prepaid advertising and promotion expenses $ 372,000,000 329,000,000  
Deferred income taxes and other assets      
Significant Accounting Policies [Line Items]      
Prepaid advertising and promotion expenses $ 383,000,000 $ 444,000,000  
v3.23.2
Property Plant and Equipment (Detail) - USD ($)
$ in Millions
May 31, 2023
May 31, 2022
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment, gross $ 10,715 $ 10,097
Less accumulated depreciation 5,634 5,306
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET 5,081 4,791
Land and improvements    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment, gross 326 330
Buildings    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment, gross 3,293 3,170
Machinery and equipment    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment, gross 3,083 2,870
Internal-use software    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment, gross 1,612 1,616
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment, gross 1,876 1,712
Construction in process    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment, gross $ 525 $ 399
v3.23.2
Accrued Liabilities (Detail) - USD ($)
$ in Millions
May 31, 2023
May 31, 2022
Accrued Liabilities, Current [Abstract]    
Other comprehensive income (loss) $ 1,737 $ 1,297
Sales-related reserves 994 1,015
Endorsement compensation 552 496
Dividends payable 529 485
Allowance for expected loss on sale 0 397
Other 1,911 2,530
Total Accrued Liabilities $ 5,723 $ 6,220
v3.23.2
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($)
$ in Millions
May 31, 2023
May 31, 2022
Assets, Fair Value Disclosure [Abstract]    
SHORT-TERM INVESTMENTS $ 3,234 $ 4,423
Fair Value, Measurements, Recurring    
Assets, Fair Value Disclosure [Abstract]    
Cash 1,767 839
ASSETS AT FAIR VALUE 10,675 12,997
CASH AND EQUIVALENTS 7,441 8,574
SHORT-TERM INVESTMENTS 3,234 4,423
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | U.S. Treasury securities    
Assets, Fair Value Disclosure [Abstract]    
ASSETS AT FAIR VALUE 2,655 3,801
CASH AND EQUIVALENTS 0 8
SHORT-TERM INVESTMENTS 2,655 3,793
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2    
Assets, Fair Value Disclosure [Abstract]    
ASSETS AT FAIR VALUE 6,253 8,357
CASH AND EQUIVALENTS 5,674 7,727
SHORT-TERM INVESTMENTS 579 630
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Commercial paper and bonds    
Assets, Fair Value Disclosure [Abstract]    
ASSETS AT FAIR VALUE 543 660
CASH AND EQUIVALENTS 15 37
SHORT-TERM INVESTMENTS 528 623
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Money market funds    
Assets, Fair Value Disclosure [Abstract]    
ASSETS AT FAIR VALUE 5,157 6,458
CASH AND EQUIVALENTS 5,157 6,458
SHORT-TERM INVESTMENTS 0 0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Time deposits    
Assets, Fair Value Disclosure [Abstract]    
ASSETS AT FAIR VALUE 507 1,237
CASH AND EQUIVALENTS 502 1,232
SHORT-TERM INVESTMENTS 5 5
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | U.S. Agency securities    
Assets, Fair Value Disclosure [Abstract]    
ASSETS AT FAIR VALUE 46 2
CASH AND EQUIVALENTS 0 0
SHORT-TERM INVESTMENTS $ 46 $ 2
v3.23.2
Fair Value Measurements - Derivative Assets and Liabilities at Fair Value (Detail) - USD ($)
May 31, 2023
May 31, 2022
Cash and Cash Equivalents    
Derivatives, Fair Value [Line Items]    
Fair value of collateral $ 36,000,000  
Foreign exchange forwards and options | Cash and Cash Equivalents    
Derivatives, Fair Value [Line Items]    
Fair value of collateral 36,000,000 $ 486,000,000
Fair value of derivative liability collateral 0 0
Fair Value, Measurements, Recurring    
Derivatives, Fair Value [Line Items]    
Reduction in derivative liabilities if netted 178,000,000 76,000,000
Reduction in derivative assets if netted 178,000,000 76,000,000
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Foreign exchange forwards and options    
Derivatives, Fair Value [Line Items]    
ASSETS AT FAIR VALUE 557,000,000  
OTHER CURRENT ASSETS 493,000,000  
OTHER LONG-TERM ASSETS 64,000,000  
LIABILITIES AT FAIR VALUE 180,000,000  
ACCRUED LIABILITIES 128,000,000  
OTHER LONG-TERM LIABILITIES $ 52,000,000  
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Foreign exchange forwards and options and embedded derivatives    
Derivatives, Fair Value [Line Items]    
ASSETS AT FAIR VALUE   880,000,000
OTHER CURRENT ASSETS   674,000,000
OTHER LONG-TERM ASSETS   206,000,000
LIABILITIES AT FAIR VALUE   77,000,000
ACCRUED LIABILITIES   66,000,000
OTHER LONG-TERM LIABILITIES   $ 11,000,000
v3.23.2
Fair Value Measurements - Additional Information (Detail) - USD ($)
$ in Millions
12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Available-for-sale securities with maturity dates within one year from purchase date $ 2,563    
Available-for-sale securities with maturity dates over one year and less than five years from purchase date 671    
Interest expense (income), net      
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Interest income related to cash and equivalents and short-term investments $ 297 $ 94 $ 34
v3.23.2
Short-Term Borrowings and Credit Lines - Additional Information (Detail) - USD ($)
Mar. 10, 2023
Mar. 11, 2022
May 31, 2023
May 31, 2022
Aug. 16, 2019
Short-term Debt [Line Items]          
Notes payable     $ 6,000,000 $ 10,000,000  
Committed Credit Facility, Maturing March 8, 2024 | Revolving Credit Facility          
Short-term Debt [Line Items]          
Notes payable     0 0  
Line of Credit | Committed Credit Facility, Maturing March 11, 2027 | Revolving Credit Facility          
Short-term Debt [Line Items]          
Borrowing capacity   $ 2,000,000,000     $ 2,000,000,000
Extension term   2 years      
Revolving credit facility, fee   0.04%      
Debt instrument, term   5 years      
Line of credit facility, amount outstanding     $ 0 $ 0  
Line of Credit | Committed Credit Facility, Maturing March 11, 2027 | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR)          
Short-term Debt [Line Items]          
Basis spread on variable rate, above LIBOR   0.60%      
Line of Credit | Committed Credit Facility, Maturing March 11, 2027 | Revolving Credit Facility, Option To Increase Upon Lender Approval          
Short-term Debt [Line Items]          
Borrowing capacity   $ 3,000,000,000      
Line of Credit | Committed Credit Facility, Maturing March 8, 2024 | Revolving Credit Facility          
Short-term Debt [Line Items]          
Borrowing capacity $ 1,000,000,000 $ 1,000,000,000      
Extension term 364 days        
Revolving credit facility, fee 0.02%        
Debt instrument, term 364 days 364 days      
Line of Credit | Committed Credit Facility, Maturing March 8, 2024 | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR)          
Short-term Debt [Line Items]          
Basis spread on variable rate, above LIBOR 0.60%        
Line of Credit | Committed Credit Facility, Maturing March 8, 2024 | Revolving Credit Facility, Option To Increase Upon Lender Approval          
Short-term Debt [Line Items]          
Borrowing capacity $ 1,500,000,000        
v3.23.2
Long-Term Debt - Net of Unamortized Premiums, Discounts and Debt Issuance Costs (Detail) - USD ($)
12 Months Ended
May 31, 2023
May 31, 2022
Debt Instrument [Line Items]    
Total $ 8,927,000,000 $ 9,420,000,000
Less Current Portion of Long-Term Debt 0 500,000,000
TOTAL LONG-TERM DEBT $ 8,927,000,000 8,920,000,000
Corporate Bond Payables    
Debt Instrument [Line Items]    
Percent of aggregate principal amount of the notes to be redeemed 100.00%  
Corporate Bond Payables | 2.25% Corporate bond, payable May 1, 2023    
Debt Instrument [Line Items]    
ORIGINAL PRINCIPAL $ 500,000,000  
INTEREST RATE 2.25%  
INTEREST PAYMENTS Semi-Annually  
Total $ 0 500,000,000
Corporate Bond Payables | 2.40% Corporate bond, payable March 27, 2025    
Debt Instrument [Line Items]    
ORIGINAL PRINCIPAL $ 1,000,000,000  
INTEREST RATE 2.40%  
INTEREST PAYMENTS Semi-Annually  
Total $ 998,000,000 996,000,000
Corporate Bond Payables | 2.38% Corporate bond, payable November 1, 2026    
Debt Instrument [Line Items]    
ORIGINAL PRINCIPAL $ 1,000,000,000  
INTEREST RATE 2.38%  
INTEREST PAYMENTS Semi-Annually  
Total $ 997,000,000 997,000,000
Corporate Bond Payables | 2.75% Corporate bond, payable March 27, 2027    
Debt Instrument [Line Items]    
ORIGINAL PRINCIPAL $ 1,000,000,000  
INTEREST RATE 2.75%  
INTEREST PAYMENTS Semi-Annually  
Total $ 997,000,000 996,000,000
Corporate Bond Payables | 2.85% Corporate bond, payable March 27, 2030    
Debt Instrument [Line Items]    
ORIGINAL PRINCIPAL $ 1,500,000,000  
INTEREST RATE 2.85%  
INTEREST PAYMENTS Semi-Annually  
Total $ 1,492,000,000 1,491,000,000
Corporate Bond Payables | 3.25% Corporate bond, payable March 27, 2040    
Debt Instrument [Line Items]    
ORIGINAL PRINCIPAL $ 1,000,000,000  
INTEREST RATE 3.25%  
INTEREST PAYMENTS Semi-Annually  
Total $ 987,000,000 986,000,000
Corporate Bond Payables | 3.63% Corporate bond, payable May 1, 2043    
Debt Instrument [Line Items]    
ORIGINAL PRINCIPAL $ 500,000,000  
INTEREST RATE 3.63%  
INTEREST PAYMENTS Semi-Annually  
Total $ 496,000,000 496,000,000
Corporate Bond Payables | 3.88% Corporate bond, payable November 1, 2045    
Debt Instrument [Line Items]    
ORIGINAL PRINCIPAL $ 1,000,000,000  
INTEREST RATE 3.88%  
INTEREST PAYMENTS Semi-Annually  
Total $ 986,000,000 985,000,000
Corporate Bond Payables | 3.38% Corporate bond, payable November 1, 2046    
Debt Instrument [Line Items]    
ORIGINAL PRINCIPAL $ 500,000,000  
INTEREST RATE 3.38%  
INTEREST PAYMENTS Semi-Annually  
Total $ 492,000,000 492,000,000
Corporate Bond Payables | 3.38% Corporate bond, payable March 27, 2050    
Debt Instrument [Line Items]    
ORIGINAL PRINCIPAL $ 1,500,000,000  
INTEREST RATE 3.38%  
INTEREST PAYMENTS Semi-Annually  
Total $ 1,482,000,000 $ 1,481,000,000
v3.23.2
Long-Term Debt - Additional Information (Detail) - USD ($)
$ in Millions
May 31, 2023
May 31, 2022
Debt Instrument [Line Items]    
Maturity of long-term debt next fiscal year $ 0  
Maturity of long-term debt in year two 1,000  
Maturity of long-term debt in year three 0  
Maturity of long-term debt in year four 2,000  
Maturity of long-term debt in year five 0  
Fair Value, Inputs, Level 2    
Debt Instrument [Line Items]    
Fair value of long term debt $ 7,889 $ 8,933
v3.23.2
Income Taxes - Income before Income Taxes (Detail) - USD ($)
$ in Millions
12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Income before income taxes:      
United States $ 4,663 $ 6,020 $ 5,723
Foreign 1,538 631 938
Income before income taxes $ 6,201 $ 6,651 $ 6,661
v3.23.2
Income Taxes - Provision for Income Taxes (Detail) - USD ($)
$ in Millions
12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Current:      
Federal $ 430 $ 231 $ 328
State 184 98 134
Foreign 634 926 857
Total Current 1,248 1,255 1,319
Deferred:      
Federal (162) (522) (371)
State (25) (16) (34)
Foreign 70 (112) 20
Total Deferred (117) (650) (385)
TOTAL INCOME TAX EXPENSE $ 1,131 $ 605 $ 934
v3.23.2
Income Taxes - Reconciliation from United States Statutory Federal Income Tax Rate to Effective Income Tax Rate (Detail)
12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Income Tax Disclosure [Abstract]      
Federal income tax rate 21.00% 21.00% 21.00%
State taxes, net of federal benefit 1.50% 1.40% 1.30%
Foreign earnings 1.70% (1.80%) 0.20%
Subpart F deferred tax benefit 0.00% (4.70%) 0.00%
Foreign-derived intangible income benefit (6.10%) (4.10%) (3.70%)
Excess tax benefits from stock-based compensation (1.10%) (4.90%) (4.50%)
Income tax audits and contingency reserves 1.00% 1.50% 1.50%
U.S. research and development tax credit (1.20%) (1.00%) (0.90%)
Other, net 1.40% 1.70% (0.90%)
EFFECTIVE INCOME TAX RATE 18.20% 9.10% 14.00%
v3.23.2
Income Taxes - Deferred Tax Assets and Liabilities (Detail) - USD ($)
$ in Millions
May 31, 2023
May 31, 2022
Deferred tax assets:    
Inventories $ 79 $ 136
Sales return reserves 89 109
Deferred compensation 321 313
Stock-based compensation 261 195
Reserves and accrued liabilities 144 145
Operating lease liabilities 511 508
Intangibles 255 275
Capitalized research and development expenditures 548 353
Net operating loss carry-forwards 15 8
Subpart F deferred tax 374 313
Foreign tax credit carry-forward 0 103
Other 183 148
Total deferred tax assets 2,780 2,606
Valuation allowance (22) (19)
Total deferred tax assets after valuation allowance 2,758 2,587
Deferred tax liabilities:    
Foreign withholding tax on undistributed earnings of foreign subsidiaries (186) (146)
Property, plant and equipment (276) (247)
Right-of-use assets (441) (437)
Other (56) (92)
Total deferred tax liabilities (959) (922)
NET DEFERRED TAX ASSET 1,799 1,665
Deferred Income Taxes And Other Assets, Noncurrent    
Deferred tax liabilities:    
NET DEFERRED TAX ASSET 2,026 1,891
Deferred Income Taxes And Other Liabilities, Noncurrent    
Deferred tax liabilities:    
Deferred tax liabilities, net $ (227) $ (226)
v3.23.2
Income Taxes - Reconciliation of Changes in Gross Balance of Unrecognized Tax Benefits (Detail) - USD ($)
$ in Millions
12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Unrecognized tax benefits, beginning of the period $ 848 $ 896 $ 771
Gross increases related to prior period tax positions 95 71 77
Gross decreases related to prior period tax positions (17) (145) (22)
Gross increases related to current period tax positions 50 62 59
Settlements (18) (17) (5)
Lapse of statute of limitations (7) (10) (6)
Decrease due to currency translation (15) (9)  
Increase due to currency translation     22
UNRECOGNIZED TAX BENEFITS, END OF THE PERIOD $ 936 $ 848 $ 896
v3.23.2
Income Taxes - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
May 31, 2020
Income Tax Contingency [Line Items]        
Subpart F deferred tax benefit 0.00% (4.70%) 0.00%  
Income tax audits and contingency reserves 1.00% 1.50% 1.50%  
Other, net 1.40% 1.70% (0.90%)  
Total gross unrecognized tax benefits, excluding related interest and penalties $ 936 $ 848 $ 896 $ 771
Total gross unrecognized tax benefits, excluding related interest and penalties, amount which would affect the Company's effective tax rate if recognized in future periods 651      
Increase (decrease) in liability for payment of interest and penalties 20 45 45  
Accrued interest and penalties related to uncertain tax positions (excluding federal benefit) 268 248    
Estimated decrease in total gross unrecognized tax benefits as a result of resolutions of global tax examinations and expiration of applicable statutes of limitations 50      
Decrease in income tax expense related to tax holiday $ 263 $ 221 $ 238  
Decrease in income tax expense related to tax holiday per diluted share, (in dollars per share) $ 0.17 $ 0.14 $ 0.15  
Valuation allowance increase (decrease) related to tax benefits of certain subsidiaries with operating losses $ 3 $ 7 $ (14)  
Available domestic and foreign loss carry-forwards 61      
Deferred income taxes and other liabilities        
Income Tax Contingency [Line Items]        
Long-term income taxes payable $ 373 $ 535    
v3.23.2
Income Taxes - Available Domestic and Foreign Loss Carryforwards (Detail)
$ in Millions
May 31, 2023
USD ($)
Income Tax Disclosure [Abstract]  
Available domestic and foreign loss carry-forwards $ 61
Operating loss carry-forwards, subject to expiration between 2028 and 2043 $ 33
v3.23.2
Redeemable Preferred Stock - Additional Information (Detail) - Non-marketable preferred stock
$ / shares in Units, $ in Millions
12 Months Ended
May 31, 2023
USD ($)
$ / shares
Temporary Equity [Line Items]  
Redeemable preferred stock, par value (in dollars per share) $ 1
Redeemable preferred stock, redeemable value (in dollars) | $ $ 0.3
Redeemable preferred stock, dividends payable annually per share (in dollars per share) $ 0.10
v3.23.2
Common Stock and Stock-Based Compensation - Additional Information (Detail)
$ / shares in Units, $ in Millions
12 Months Ended
May 31, 2023
USD ($)
$ / shares
shares
May 31, 2022
USD ($)
$ / shares
shares
May 31, 2021
USD ($)
$ / shares
shares
Class A Convertible Common Stock      
Common Stock and Share Based Compensation [Line Items]      
Common stock, no par value (in dollars per share) | $ / shares $ 0    
Common stock, number of shares authorized (in shares) 400,000,000    
Common stock, Class A conversion ratio to Class B (in shares) 1    
Class B Common Stock      
Common Stock and Share Based Compensation [Line Items]      
Common stock, no par value (in dollars per share) | $ / shares $ 0    
Common stock, number of shares authorized (in shares) 2,400,000,000    
Class B Common Stock | ESPPs      
Common Stock and Share Based Compensation [Line Items]      
Employee stock purchase plans, payroll deductions 10.00%    
Employee stock purchase plan offering period 6 months    
Shares purchased, price as percentage of lower of the fair market value 85.00%    
Purchase of shares by employee (in shares) 3,000,000 2,000,000 2,500,000
Stock Incentive Plan      
Common Stock and Share Based Compensation [Line Items]      
Stock options vesting period (in years) 4 years    
Stock options expiration from the date of grant (in years) 10 years    
Options exercisable (in shares) 44,700,000    
Options exercisable (in dollars per share) | $ / shares $ 79.95    
Stock Incentive Plan | Stock options      
Common Stock and Share Based Compensation [Line Items]      
Unrecognized compensation costs from stock options, net of estimated forfeitures | $ $ 425    
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 6 months    
Stock Incentive Plan | Class B Common Stock      
Common Stock and Share Based Compensation [Line Items]      
Shares available for grant (in shares) 798,000,000    
Minimum term of market traded options for estimates of expected volatility (in years) 1 year    
Aggregate intrinsic value for options outstanding | $ $ 1,380    
Aggregate intrinsic value for options exercisable | $ 1,307    
Total intrinsic value of options exercised | $ $ 438 $ 1,742 $ 1,571
Weighted average remaining contractual life for options outstanding (in years) 5 years 10 months 24 days    
Weighted average remaining contractual life for options exercisable (in years) 4 years 6 months    
Stock Incentive Plan | Class B Common Stock | Stock options      
Common Stock and Share Based Compensation [Line Items]      
Weighted average fair value per share of the options granted (in dollars per share) | $ / shares $ 31.31 $ 37.53 $ 26.75
v3.23.2
Common Stock and Stock-Based Compensation - Total Stock-Based Compensation Expense (Detail) - USD ($)
$ in Millions
12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Accelerated stock option expense $ 64 $ 57 $ 67
Tax benefit related to stock-based compensation expense 71 327 297
Class B Common Stock      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Stock-based compensation expense 755 638 611
Class B Common Stock | Stock options      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Stock-based compensation expense 311 297 323
Class B Common Stock | ESPPs      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Stock-based compensation expense 72 60 63
Class B Common Stock | Restricted stock and restricted stock units      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Stock-based compensation expense $ 372 $ 281 $ 225
v3.23.2
Common Stock and Stock-Based Compensation - Weighted Average Assumptions Used to Estimate Fair Values (Detail) - Stock options
12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Dividend yield 0.90% 0.80% 0.90%
Expected volatility 27.10% 24.90% 27.30%
Weighted average expected life (in years) 5 years 9 months 18 days 5 years 9 months 18 days 6 years
Risk-free interest rate 3.30% 0.90% 0.40%
v3.23.2
Common Stock and Stock-Based Compensation - Stock Option Transactions Under Plan (Detail) - Stock Incentive Plan
shares in Millions
12 Months Ended
May 31, 2023
$ / shares
shares
Options Outstanding - Shares  
Beginning Balance (in shares) | shares 68.0
Exercised (in shares) | shares (7.5)
Forfeited (in shares) | shares (1.5)
Granted (in shares) | shares 12.0
Ending Balance (in shares) | shares 71.0
Options exercisable (in shares) | shares 44.7
Options Outstanding - Weighted-Average Option Price  
Beginning Balance (in dollars per share) | $ / shares $ 88.66
Exercised (in dollars per share) | $ / shares 57.11
Forfeited (in dollars per share) | $ / shares 122.93
Granted (in dollars per share) | $ / shares 107.44
Ending Balance (in dollars per share) | $ / shares 94.40
Options exercisable (in dollars per share) | $ / shares $ 79.95
v3.23.2
Common Stock and Stock-Based Compensation - Restricted Stock and Restricted Stock Units (Details) - Restricted Stock And Restricted Stock Units - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
SHARES      
Nonvested Awards, beginning balance (in shares) 6.7    
Vested (in shares) (2.2)    
Forfeited (in shares) (0.7)    
Granted (in shares) 4.5    
Nonvested Awards, ending balance (in shares) 8.3 6.7  
WEIGHTED AVERAGE GRANT DATE FAIR VALUE      
Nonvested awards, beginning balance (in dollars per share) $ 130,880,000    
Vested (in dollars per share) 114,850,000    
Forfeited (in dollars per share) 131,100,000    
Granted (in dollars per share) 115,560,000 $ 168.04 $ 113.84
Nonvested awards, ending balance (in dollars per share) $ 126.97 $ 130,880,000  
Vested, fair value $ 250 $ 354 $ 310
Unrecognized compensation costs from restricted stock, net of estimated forfeitures $ 649    
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 3 months 18 days    
v3.23.2
Earnings Per Share - Additional Information (Detail) - shares
shares in Millions
12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Stock options      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Anti-dilutive options not included in the computation of diluted earnings per share (in shares) 31.7 9.4 11.3
v3.23.2
Earnings Per Share - Reconciliation from Basic Earnings Per Share to Diluted Earnings Per Share (Detail) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Earnings Per Share [Abstract]      
Net income available to common stockholders $ 5,070 $ 6,046 $ 5,727
Determination of shares:      
Weighted average common shares outstanding 1,551.6 1,578.8 1,573.0
Assumed conversion of dilutive stock options and awards 18.2 32.0 36.4
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 1,569.8 1,610.8 1,609.4
Earnings per common share:      
Basic (in dollars per share) $ 3.27 $ 3.83 $ 3.64
Diluted (in dollars per share) $ 3.23 $ 3.75 $ 3.56
v3.23.2
Benefit Plans - Additional Information (Detail) - USD ($)
$ in Millions
12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Retirement Benefits [Abstract]      
401(k) employee savings plans, expenses $ 136 $ 126 $ 110
Assets held in rabbi trust 875 876  
Deferred compensation plan liabilities 897 890  
Liability related to the unfunded pension plan $ 29 $ 30  
v3.23.2
Risk Management and Derivatives - FV of Derivative Instruments Included within Consolidated Balance Sheet (Detail) - USD ($)
$ in Millions
May 31, 2023
May 31, 2022
Derivatives, Fair Value [Line Items]    
DERIVATIVE ASSETS $ 557 $ 880
DERIVATIVE LIABILITIES 180 77
Derivatives formally designated as hedging instruments    
Derivatives, Fair Value [Line Items]    
DERIVATIVE ASSETS 544 845
DERIVATIVE LIABILITIES 145 48
Derivatives formally designated as hedging instruments | Foreign exchange forwards and options | Prepaid expenses and other current assets    
Derivatives, Fair Value [Line Items]    
DERIVATIVE ASSETS 480 639
Derivatives formally designated as hedging instruments | Foreign exchange forwards and options | Deferred income taxes and other assets    
Derivatives, Fair Value [Line Items]    
DERIVATIVE ASSETS 64 206
Derivatives formally designated as hedging instruments | Foreign exchange forwards and options | Accrued liabilities    
Derivatives, Fair Value [Line Items]    
DERIVATIVE LIABILITIES 93 37
Derivatives formally designated as hedging instruments | Foreign exchange forwards and options | Deferred income taxes and other liabilities    
Derivatives, Fair Value [Line Items]    
DERIVATIVE LIABILITIES 52 11
Derivatives not designated as hedging instruments    
Derivatives, Fair Value [Line Items]    
DERIVATIVE ASSETS 13 35
DERIVATIVE LIABILITIES 35 29
Derivatives not designated as hedging instruments | Foreign exchange forwards and options and embedded derivatives | Prepaid expenses and other current assets    
Derivatives, Fair Value [Line Items]    
DERIVATIVE ASSETS 13 35
Derivatives not designated as hedging instruments | Foreign exchange forwards and options and embedded derivatives | Accrued liabilities    
Derivatives, Fair Value [Line Items]    
DERIVATIVE LIABILITIES $ 35 $ 29
v3.23.2
Risk Management and Derivatives - Effects Of Cash Flow Hedges in Statement of Income (Details) - USD ($)
$ in Millions
12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Derivative Instruments, Gain (Loss) [Line Items]      
Revenues $ 51,217 $ 46,710 $ 44,538
Cost of sales 28,925 25,231 24,576
Demand creation expense 4,060 3,850 3,114
Other (income) expense, net (280) (181) 14
Interest expense (income), net (6) 205 262
Cash Flow Hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY 932 19 45
Foreign exchange forwards and options | Revenues | Cash Flow Hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY 26 (82) 45
Foreign exchange forwards and options | Cost of sales | Cash Flow Hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY 581 (23) 51
Foreign exchange forwards and options | Demand creation expense | Cash Flow Hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY (5) 1 3
Foreign exchange forwards and options | Other (income) expense, net | Cash Flow Hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY 338 130 (47)
Interest rate swaps | Interest expense (income), net | Cash Flow Hedging      
Derivative Instruments, Gain (Loss) [Line Items]      
AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY $ (8) $ (7) $ (7)
v3.23.2
Risk Management and Derivatives - Amounts Affecting Consolidated Statements of Income (Detail) - USD ($)
$ in Millions
12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Foreign exchange forwards and options and embedded derivatives | Derivatives not designated as hedging instruments      
Derivative Instruments, Gain (Loss) [Line Items]      
AMOUNT OF GAIN (LOSS) RECOGNIZED IN INCOME ON DERIVATIVES $ 28 $ 38 $ (167)
Derivatives designated as cash flow hedges      
Derivative Instruments, Gain (Loss) [Line Items]      
AMOUNT OF GAIN (LOSS) RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) ON DERIVATIVES 527 1,336 (782)
AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME 932 19 45
Derivatives designated as cash flow hedges | Foreign exchange forwards and options | Revenues      
Derivative Instruments, Gain (Loss) [Line Items]      
AMOUNT OF GAIN (LOSS) RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) ON DERIVATIVES 16 (39) (61)
AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME 26 (82) 45
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 (LOSS) ON DERIVATIVES 305 889 (563)
AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME 581 (23) 51
Derivatives designated as cash flow hedges | Foreign exchange forwards and options | Demand creation expense      
Derivative Instruments, Gain (Loss) [Line Items]      
AMOUNT OF GAIN (LOSS) RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) ON DERIVATIVES (1) (6) 5
AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME (5) 1 3
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 (LOSS) ON DERIVATIVES 207 492 (163)
AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME 338 130 (47)
Derivatives designated as cash flow hedges | Interest rate swaps | Interest expense (income), net      
Derivative Instruments, Gain (Loss) [Line Items]      
AMOUNT OF GAIN (LOSS) RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) ON DERIVATIVES 0 0 0
AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME $ (8) $ (7) $ (7)
v3.23.2
Risk Management and Derivatives - Additional Information (Detail) - USD ($)
12 Months Ended
May 31, 2023
May 31, 2022
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Deferred net gain (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 $ 419,000,000  
Maximum term over which the Company is hedging exposures to the variability of cash flows for its forecasted and recorded transactions (in months) 27 months  
Derivative, net liability position, aggregate fair value $ 2,000,000  
Derivatives designated as cash flow hedges    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Additional period for forecasted transaction expected to occur 2 months  
Percentage of anticipated exposures hedged (percent) 100.00%  
Foreign exchange forwards and options | Derivatives designated as net investment hedges    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative assets (liabilities), at fair value, net $ 0  
Minimum    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Minimum fair value of outstanding derivative above which the credit related contingent features require the derivative party to post collateral $ 50,000,000  
Minimum | Derivatives designated as cash flow hedges    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Typical time period that anticipated exposures are hedged against (in months) 12 months  
Maximum | Derivatives designated as cash flow hedges    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Typical time period that anticipated exposures are hedged against (in months) 24 months  
Designated as Hedging Instrument | Derivatives designated as cash flow hedges    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative, notional amount $ 18,200,000,000  
Derivatives not designated as hedging instruments | Not designated as derivative instrument    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Derivative, notional amount 4,700,000,000  
Cash and Cash Equivalents    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Cash collateral posted 0  
Fair value of collateral 36,000,000  
Cash and Cash Equivalents | Foreign exchange forwards and options    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Fair value of collateral $ 36,000,000 $ 486,000,000
v3.23.2
Accumulated Other Comprehensive Income (Loss) - Changes in AOCI (Detail) - USD ($)
$ in Millions
12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
May 31, 2020
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Beginning balance $ 15,281 $ 12,767 $ 8,055  
Other comprehensive income (loss):        
Other comprehensive gains (losses) before reclassifications 376 728    
Reclassifications to net income of previously deferred (gains) losses (463) (30)    
Total other comprehensive income (loss), net of tax (87) 698 (324) $ (324)
Ending balance 14,004 15,281 12,767 8,055
Other comprehensive income, before reclassification, tax benefit (expense) (34) (123)    
Reclassification from AOCI, current period, tax expense (benefit) 76 20    
TOTAL        
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Beginning balance 318 (380) (56)  
Other comprehensive income (loss):        
Total other comprehensive income (loss), net of tax (87) 698 (324)  
Ending balance 231 318 (380) $ (56)
FOREIGN CURRENCY TRANSLATION ADJUSTMENT        
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Beginning balance (520) 2    
Other comprehensive income (loss):        
Other comprehensive gains (losses) before reclassifications (91) (522)    
Reclassifications to net income of previously deferred (gains) losses 358 0    
Total other comprehensive income (loss), net of tax 267 (522)    
Ending balance (253) (520) 2  
Other comprehensive income, before reclassification, tax benefit (expense) 0 0    
Reclassification from AOCI, current period, tax expense (benefit) (16) 0    
CASH FLOW HEDGES        
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Beginning balance 779 (435)    
Other comprehensive income (loss):        
Other comprehensive gains (losses) before reclassifications 487 1,222    
Reclassifications to net income of previously deferred (gains) losses (835) (8)    
Total other comprehensive income (loss), net of tax (348) 1,214    
Ending balance 431 779 (435)  
Other comprehensive income, before reclassification, tax benefit (expense) (40) (114)    
Reclassification from AOCI, current period, tax expense (benefit) 97 11    
NET INVESTMENT HEDGES        
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Beginning balance 115 115    
Other comprehensive income (loss):        
Other comprehensive gains (losses) before reclassifications 0 0    
Reclassifications to net income of previously deferred (gains) losses 0 0    
Total other comprehensive income (loss), net of tax 0 0    
Ending balance 115 115 115  
Other comprehensive income, before reclassification, tax benefit (expense) 0 0    
Reclassification from AOCI, current period, tax expense (benefit) 0 0    
OTHER        
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Beginning balance (56) (62)    
Other comprehensive income (loss):        
Other comprehensive gains (losses) before reclassifications (20) 28    
Reclassifications to net income of previously deferred (gains) losses 14 (22)    
Total other comprehensive income (loss), net of tax (6) 6    
Ending balance (62) (56) $ (62)  
Other comprehensive income, before reclassification, tax benefit (expense) 6 (9)    
Reclassification from AOCI, current period, tax expense (benefit) $ (5) $ 9    
v3.23.2
Accumulated Other Comprehensive Income (Loss) - Reclassification out of AOCI (Details) - USD ($)
$ in Millions
12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Reclassification out of Accumulated Other Comprehensive Income [Line Items]      
Other expense (income), net $ 280 $ 181 $ (14)
Income before income taxes 6,201 6,651 6,661
Tax (expense) benefit (1,131) (605) (934)
Revenues 51,217 46,710 44,538
Cost of sales (28,925) (25,231) (24,576)
Demand creation expense (4,060) (3,850) (3,114)
Interest expense (income), net 6 (205) $ (262)
AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME      
Reclassification out of Accumulated Other Comprehensive Income [Line Items]      
Gain (loss) net of tax 463 30  
Gains (losses) on foreign currency translation adjustment | AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME      
Reclassification out of Accumulated Other Comprehensive Income [Line Items]      
Other expense (income), net (374) 0  
Income before income taxes (374) 0  
Tax (expense) benefit 16 0  
Gain (loss) net of tax (358) 0  
Gain (losses) on cash flow hedges | AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME      
Reclassification out of Accumulated Other Comprehensive Income [Line Items]      
Income before income taxes 932 19  
Tax (expense) benefit (97) (11)  
Gain (loss) net of tax 835 8  
Gain (losses) on cash flow hedges | Foreign exchange forwards and options | AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME      
Reclassification out of Accumulated Other Comprehensive Income [Line Items]      
Other expense (income), net 338 130  
Revenues 26 (82)  
Cost of sales 581 (23)  
Demand creation expense (5) 1  
Gain (losses) on cash flow hedges | Interest rate swaps | AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME      
Reclassification out of Accumulated Other Comprehensive Income [Line Items]      
Interest expense (income), net (8) (7)  
OTHER | AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME      
Reclassification out of Accumulated Other Comprehensive Income [Line Items]      
Other expense (income), net (19) 31  
Income before income taxes (19) 31  
Tax (expense) benefit 5 (9)  
Gain (loss) net of tax $ (14) $ 22  
v3.23.2
Revenues (Details) - USD ($)
$ in Millions
12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Disaggregation of Revenue [Line Items]      
Revenues $ 51,217 $ 46,710 $ 44,538
Allowance for sales discounts returns and miscellaneous claims 994 1,015  
Sales to Wholesale Customers      
Disaggregation of Revenue [Line Items]      
Revenues 28,696 26,900 27,251
Sales through Direct to Consumer      
Disaggregation of Revenue [Line Items]      
Revenues 22,282 19,657 17,136
Other      
Disaggregation of Revenue [Line Items]      
Revenues 239 153 151
Footwear      
Disaggregation of Revenue [Line Items]      
Revenues 35,290 31,237 30,007
Apparel      
Disaggregation of Revenue [Line Items]      
Revenues 13,933 13,670 12,969
Equipment      
Disaggregation of Revenue [Line Items]      
Revenues 1,755 1,650 1,411
Other      
Disaggregation of Revenue [Line Items]      
Revenues 239 153 151
Operating Segments | NIKE Brand      
Disaggregation of Revenue [Line Items]      
Revenues 48,763 44,436 42,293
Operating Segments | NIKE Brand | Sales to Wholesale Customers      
Disaggregation of Revenue [Line Items]      
Revenues 27,397 25,608 25,898
Operating Segments | NIKE Brand | Sales through Direct to Consumer      
Disaggregation of Revenue [Line Items]      
Revenues 21,308 18,726 16,370
Operating Segments | NIKE Brand | Other      
Disaggregation of Revenue [Line Items]      
Revenues 58 102 25
Operating Segments | NIKE Brand | Footwear      
Disaggregation of Revenue [Line Items]      
Revenues 33,135 29,143 28,021
Operating Segments | NIKE Brand | Apparel      
Disaggregation of Revenue [Line Items]      
Revenues 13,843 13,567 12,865
Operating Segments | NIKE Brand | Equipment      
Disaggregation of Revenue [Line Items]      
Revenues 1,727 1,624 1,382
Operating Segments | NIKE Brand | Other      
Disaggregation of Revenue [Line Items]      
Revenues 58 102 25
Operating Segments | CONVERSE      
Disaggregation of Revenue [Line Items]      
Revenues 2,427 2,346 2,205
Operating Segments | CONVERSE | Sales to Wholesale Customers      
Disaggregation of Revenue [Line Items]      
Revenues 1,299 1,292 1,353
Operating Segments | CONVERSE | Sales through Direct to Consumer      
Disaggregation of Revenue [Line Items]      
Revenues 974 931 766
Operating Segments | CONVERSE | Other      
Disaggregation of Revenue [Line Items]      
Revenues 154 123 86
Operating Segments | CONVERSE | Footwear      
Disaggregation of Revenue [Line Items]      
Revenues 2,155 2,094 1,986
Operating Segments | CONVERSE | Apparel      
Disaggregation of Revenue [Line Items]      
Revenues 90 103 104
Operating Segments | CONVERSE | Equipment      
Disaggregation of Revenue [Line Items]      
Revenues 28 26 29
Operating Segments | CONVERSE | Other      
Disaggregation of Revenue [Line Items]      
Revenues 154 123 86
Global Brand Divisions      
Disaggregation of Revenue [Line Items]      
Revenues 58 102 25
Global Brand Divisions | Sales to Wholesale Customers      
Disaggregation of Revenue [Line Items]      
Revenues     0
Global Brand Divisions | Sales through Direct to Consumer      
Disaggregation of Revenue [Line Items]      
Revenues     0
Global Brand Divisions | Other      
Disaggregation of Revenue [Line Items]      
Revenues 58 102 25
Global Brand Divisions | Footwear      
Disaggregation of Revenue [Line Items]      
Revenues     0
Global Brand Divisions | Apparel      
Disaggregation of Revenue [Line Items]      
Revenues     0
Global Brand Divisions | Equipment      
Disaggregation of Revenue [Line Items]      
Revenues     0
Global Brand Divisions | Other      
Disaggregation of Revenue [Line Items]      
Revenues 58 102 25
Corporate      
Disaggregation of Revenue [Line Items]      
Revenues 27 (72) 40
Corporate | Sales to Wholesale Customers      
Disaggregation of Revenue [Line Items]      
Revenues     0
Corporate | Sales through Direct to Consumer      
Disaggregation of Revenue [Line Items]      
Revenues     0
Corporate | Other      
Disaggregation of Revenue [Line Items]      
Revenues 27 (72) 40
Corporate | Footwear      
Disaggregation of Revenue [Line Items]      
Revenues     0
Corporate | Apparel      
Disaggregation of Revenue [Line Items]      
Revenues     0
Corporate | Equipment      
Disaggregation of Revenue [Line Items]      
Revenues     0
Corporate | Other      
Disaggregation of Revenue [Line Items]      
Revenues 27 (72) 40
NORTH AMERICA | Operating Segments | NIKE Brand      
Disaggregation of Revenue [Line Items]      
Revenues 21,608 18,353 17,179
NORTH AMERICA | Operating Segments | NIKE Brand | Sales to Wholesale Customers      
Disaggregation of Revenue [Line Items]      
Revenues 11,273 9,621 10,186
NORTH AMERICA | Operating Segments | NIKE Brand | Sales through Direct to Consumer      
Disaggregation of Revenue [Line Items]      
Revenues 10,335 8,732 6,993
NORTH AMERICA | Operating Segments | NIKE Brand | Other      
Disaggregation of Revenue [Line Items]      
Revenues 0 0 0
NORTH AMERICA | Operating Segments | NIKE Brand | Footwear      
Disaggregation of Revenue [Line Items]      
Revenues 14,897 12,228 11,644
NORTH AMERICA | Operating Segments | NIKE Brand | Apparel      
Disaggregation of Revenue [Line Items]      
Revenues 5,947 5,492 5,028
NORTH AMERICA | Operating Segments | NIKE Brand | Equipment      
Disaggregation of Revenue [Line Items]      
Revenues 764 633 507
NORTH AMERICA | Operating Segments | NIKE Brand | Other      
Disaggregation of Revenue [Line Items]      
Revenues 0 0 0
EUROPE, MIDDLE EAST & AFRICA | Operating Segments | NIKE Brand      
Disaggregation of Revenue [Line Items]      
Revenues 13,418 12,479 11,456
EUROPE, MIDDLE EAST & AFRICA | Operating Segments | NIKE Brand | Sales to Wholesale Customers      
Disaggregation of Revenue [Line Items]      
Revenues 8,522 8,377 7,812
EUROPE, MIDDLE EAST & AFRICA | Operating Segments | NIKE Brand | Sales through Direct to Consumer      
Disaggregation of Revenue [Line Items]      
Revenues 4,896 4,102 3,644
EUROPE, MIDDLE EAST & AFRICA | Operating Segments | NIKE Brand | Other      
Disaggregation of Revenue [Line Items]      
Revenues 0 0 0
EUROPE, MIDDLE EAST & AFRICA | Operating Segments | NIKE Brand | Footwear      
Disaggregation of Revenue [Line Items]      
Revenues 8,260 7,388 6,970
EUROPE, MIDDLE EAST & AFRICA | Operating Segments | NIKE Brand | Apparel      
Disaggregation of Revenue [Line Items]      
Revenues 4,566 4,527 3,996
EUROPE, MIDDLE EAST & AFRICA | Operating Segments | NIKE Brand | Equipment      
Disaggregation of Revenue [Line Items]      
Revenues 592 564 490
EUROPE, MIDDLE EAST & AFRICA | Operating Segments | NIKE Brand | Other      
Disaggregation of Revenue [Line Items]      
Revenues 0 0 0
GREATER CHINA | Operating Segments | NIKE Brand      
Disaggregation of Revenue [Line Items]      
Revenues 7,248 7,547 8,290
GREATER CHINA | Operating Segments | NIKE Brand | Sales to Wholesale Customers      
Disaggregation of Revenue [Line Items]      
Revenues 3,866 4,081 4,513
GREATER CHINA | Operating Segments | NIKE Brand | Sales through Direct to Consumer      
Disaggregation of Revenue [Line Items]      
Revenues 3,382 3,466 3,777
GREATER CHINA | Operating Segments | NIKE Brand | Other      
Disaggregation of Revenue [Line Items]      
Revenues 0 0 0
GREATER CHINA | Operating Segments | NIKE Brand | Footwear      
Disaggregation of Revenue [Line Items]      
Revenues 5,435 5,416 5,748
GREATER CHINA | Operating Segments | NIKE Brand | Apparel      
Disaggregation of Revenue [Line Items]      
Revenues 1,666 1,938 2,347
GREATER CHINA | Operating Segments | NIKE Brand | Equipment      
Disaggregation of Revenue [Line Items]      
Revenues 147 193 195
GREATER CHINA | Operating Segments | NIKE Brand | Other      
Disaggregation of Revenue [Line Items]      
Revenues 0 0 0
ASIA PACIFIC & LATIN AMERICA(1) | Operating Segments | NIKE Brand      
Disaggregation of Revenue [Line Items]      
Revenues 6,431 5,955 5,343
ASIA PACIFIC & LATIN AMERICA(1) | Operating Segments | NIKE Brand | Sales to Wholesale Customers      
Disaggregation of Revenue [Line Items]      
Revenues 3,736 3,529 3,387
ASIA PACIFIC & LATIN AMERICA(1) | Operating Segments | NIKE Brand | Sales through Direct to Consumer      
Disaggregation of Revenue [Line Items]      
Revenues 2,695 2,426 1,956
ASIA PACIFIC & LATIN AMERICA(1) | Operating Segments | NIKE Brand | Other      
Disaggregation of Revenue [Line Items]      
Revenues 0 0 0
ASIA PACIFIC & LATIN AMERICA(1) | Operating Segments | NIKE Brand | Footwear      
Disaggregation of Revenue [Line Items]      
Revenues 4,543 4,111 3,659
ASIA PACIFIC & LATIN AMERICA(1) | Operating Segments | NIKE Brand | Apparel      
Disaggregation of Revenue [Line Items]      
Revenues 1,664 1,610 1,494
ASIA PACIFIC & LATIN AMERICA(1) | Operating Segments | NIKE Brand | Equipment      
Disaggregation of Revenue [Line Items]      
Revenues 224 234 190
ASIA PACIFIC & LATIN AMERICA(1) | Operating Segments | NIKE Brand | Other      
Disaggregation of Revenue [Line Items]      
Revenues 0 0 $ 0
Prepaid expenses and other current assets      
Disaggregation of Revenue [Line Items]      
Reserve for sales returns $ 226 $ 194  
v3.23.2
Operating Segments and Related Information - Information by Operating Segments (Detail) - USD ($)
$ in Millions
12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenues $ 51,217 $ 46,710 $ 44,538
Interest expense (income), net (6) 205 262
Income before income taxes 6,201 6,651 6,661
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT 1,036 811 791
Depreciation 703 717 744
Global Brand Divisions      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenues 58 102 25
EARNINGS BEFORE INTEREST AND TAXES (4,841) (4,262) (3,656)
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT 271 222 278
Depreciation 211 220 222
Corporate      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenues 27 (72) 40
EARNINGS BEFORE INTEREST AND TAXES (2,840) (2,219) (2,261)
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT 140 103 107
Depreciation 131 134 141
NIKE Brand | Operating Segments      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenues 48,763 44,436 42,293
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT 889 699 677
Depreciation 555 561 577
CONVERSE | Operating Segments      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenues 2,427 2,346 2,205
EARNINGS BEFORE INTEREST AND TAXES 676 669 543
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT 7 9 7
Depreciation 17 22 26
NORTH AMERICA | NIKE Brand | Operating Segments      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenues 21,608 18,353 17,179
EARNINGS BEFORE INTEREST AND TAXES 5,454 5,114 5,089
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT 283 146 98
Depreciation 128 124 130
EUROPE, MIDDLE EAST & AFRICA | NIKE Brand | Operating Segments      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenues 13,418 12,479 11,456
EARNINGS BEFORE INTEREST AND TAXES 3,531 3,293 2,435
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT 215 197 153
Depreciation 120 134 136
GREATER CHINA | NIKE Brand | Operating Segments      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenues 7,248 7,547 8,290
EARNINGS BEFORE INTEREST AND TAXES 2,283 2,365 3,243
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT 56 78 94
Depreciation 54 41 46
ASIA PACIFIC & LATIN AMERICA(1) | NIKE Brand | Operating Segments      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Revenues 6,431 5,955 5,343
EARNINGS BEFORE INTEREST AND TAXES 1,932 1,896 1,530
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT 64 56 54
Depreciation $ 42 $ 42 $ 43
v3.23.2
Operating Segments and Related Information - Accounts Receivable Net Inventories and Property Plant and Equipment Net by Operating Segments (Detail) - USD ($)
$ in Millions
May 31, 2023
May 31, 2022
Segment Reporting, Asset Reconciling Item [Line Items]    
Accounts receivable, net $ 4,131 $ 4,667
Inventories 8,454 8,420
Property, plant and equipment, net 5,081 4,791
Global Brand Divisions    
Segment Reporting, Asset Reconciling Item [Line Items]    
Accounts receivable, net 96 113
Inventories 232 197
Property, plant and equipment, net 840 789
Corporate    
Segment Reporting, Asset Reconciling Item [Line Items]    
Accounts receivable, net 88 53
Inventories 77 229
Property, plant and equipment, net 1,829 1,817
NIKE Brand | Operating Segments    
Segment Reporting, Asset Reconciling Item [Line Items]    
Accounts receivable, net 3,808 4,384
Inventories 8,072 7,912
Property, plant and equipment, net 3,214 2,925
CONVERSE | Operating Segments    
Segment Reporting, Asset Reconciling Item [Line Items]    
Accounts receivable, net 235 230
Inventories 305 279
Property, plant and equipment, net 38 49
NORTH AMERICA | NIKE Brand | Operating Segments    
Segment Reporting, Asset Reconciling Item [Line Items]    
Accounts receivable, net 1,653 1,850
Inventories 3,806 4,098
Property, plant and equipment, net 794 639
EUROPE, MIDDLE EAST & AFRICA | NIKE Brand | Operating Segments    
Segment Reporting, Asset Reconciling Item [Line Items]    
Accounts receivable, net 1,197 1,351
Inventories 2,167 1,887
Property, plant and equipment, net 1,009 920
GREATER CHINA | NIKE Brand | Operating Segments    
Segment Reporting, Asset Reconciling Item [Line Items]    
Accounts receivable, net 162 406
Inventories 973 1,044
Property, plant and equipment, net 292 303
ASIA PACIFIC & LATIN AMERICA(1) | NIKE Brand | Operating Segments    
Segment Reporting, Asset Reconciling Item [Line Items]    
Accounts receivable, net 700 664
Inventories 894 686
Property, plant and equipment, net $ 279 $ 274
v3.23.2
Operating Segments and Related Information - Additional Information (Detail) - USD ($)
$ in Millions
12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Regional Reporting Disclosure [Line Items]      
Revenues $ 51,217 $ 46,710 $ 44,538
United States      
Regional Reporting Disclosure [Line Items]      
Revenues 22,007 18,749 $ 17,363
Long-lived assets attributable to operations (Domestic) 5,129 4,916  
Belgium      
Regional Reporting Disclosure [Line Items]      
Long-lived assets attributable to operations (Domestic) 702 646  
China      
Regional Reporting Disclosure [Line Items]      
Long-lived assets attributable to operations (Domestic) $ 559 $ 538  
v3.23.2
Commitments and Contingencies (Detail) - USD ($)
$ in Millions
May 31, 2023
May 31, 2022
Commitments and Contingencies Disclosure [Abstract]    
Letters of credit outstanding $ 588 $ 289
v3.23.2
Leases - Additional Information (Details) - USD ($)
$ in Millions
12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Leases [Abstract]      
Operating lease cost $ 585 $ 593 $ 589
Variable lease cost $ 403 $ 366 $ 347
v3.23.2
Leases - Maturities (Details)
$ in Millions
May 31, 2023
USD ($)
Leases [Abstract]  
Fiscal 2024 $ 506
Fiscal 2025 562
Fiscal 2026 490
Fiscal 2027 436
Fiscal 2028 369
Thereafter 1,225
Total undiscounted future cash flows related to lease payments 3,588
Less interest 377
Present value of lease liabilities 3,211
Minimum lease payments, agreements signed but not yet commenced $ 278
v3.23.2
Leases - Lease Term and Discount Rate (Details)
May 31, 2023
May 31, 2022
Leases [Abstract]    
Weighted-average remaining lease term (in years) 7 years 6 months 7 years 9 months 18 days
Weighted-average discount rate 2.50% 2.30%
v3.23.2
Leases - Supplemental Cash Flows (Details) - USD ($)
$ in Millions
12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Leases [Abstract]      
Cash paid for amounts included in the measurement of lease liabilities: $ 575 $ 589 $ 583
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities $ 602 $ 537 $ 489
v3.23.2
Acquisitions and Divestitures (Details) - Discontinued Operations, Held-for-sale - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Feb. 28, 2023
Aug. 31, 2020
May 31, 2021
May 31, 2022
Argentina And Uruguay | NIKE Brand Businesses        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Non-recurring impairment charge $ 550 $ 389    
Grupo Axo | Argentina, Uruguay And Chile | NIKE Brand Businesses        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Assets, held-for-sale       $ 182
Liabilities, held-for-sale       $ 58
Grupo SBF S.A. | BRAZIL        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Loss on disposal     $ 50  
v3.23.2
Restructuring (Details) - One-time Termination Benefits
$ in Millions
12 Months Ended
May 31, 2021
USD ($)
Restructuring Cost and Reserve [Line Items]  
Payments for restructuring $ 212
Operating Overhead Expense  
Restructuring Cost and Reserve [Line Items]  
Restructuring charges 214
Stock-based compensation expense 41
Cost of sales  
Restructuring Cost and Reserve [Line Items]  
Restructuring charges 35
Stock-based compensation expense $ 4
v3.23.2
Schedule II - Valuation and Qualifying Accounts (Detail) - Allowance for Sales Returns - USD ($)
$ in Millions
12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
BALANCE AT BEGINNING OF
PERIOD $ 525 $ 595 $ 682
CHARGED TO COSTS AND EXPENSES 3,344 2,573 2,617
CHARGED TO OTHER ACCOUNTS (11) (31) 41
WRITE-OFFS,
NET (3,309) (2,612) (2,745)
BALANCE 
AT END 
OF PERIOD $ 549 $ 525 $ 595
v3.23.2
Label Element Value
Accounting Standards Update [Extensible Enumeration] us-gaap_AccountingStandardsUpdateExtensibleList Accounting Standards Update 2016-02 [Member]