Cover Page - USD ($)	12 Months Ended
Cover Page - USD ($)	May 31, 2020	Jul. 17, 2020	Nov. 30, 2019
Document Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	May 31, 2020
Document Transition Report	false
Entity File Number	1-10635
Entity Registrant Name	NIKE, Inc.
Entity Incorporation, State or Country Code	OR
Entity Tax Identification Number	93-0584541
Entity Address, Address Line One	One Bowerman Drive
Entity Address, City or Town	Beaverton
Entity Address, State or Province	OR
Entity Address, Postal Zip Code	97005-6453
City Area Code	503
Local Phone Number	671-6453
Title of 12(b) Security	Class B Common Stock
Trading Symbol	NKE
Security Exchange Name	NYSE
Entity 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			$ 123,844,132,290
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Entity Central Index Key	0000320187
Current Fiscal Year End Date	--05-31
Documents Incorporated by Reference	DOCUMENTS INCORPORATED BY REFERENCE: Parts of Registrant's Proxy Statement for the Annual Meeting of Shareholders to be held on September 17, 2020 are incorporated by reference into Part III of this Report.
Class A Convertible Common Stock
Document Information [Line Items]
Entity Public Float			7,387,322,889
Entity Common Stock Shares Outstanding (In Shares)		315,017,252
Class B Common Stock
Document Information [Line Items]
Entity Public Float			$ 116,456,809,401
Entity Common Stock Shares Outstanding (In Shares)		1,244,871,297

Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Income Statement [Abstract]
Revenues	$ 37,403	$ 39,117	$ 36,397
Cost of sales	21,162	21,643	20,441
Gross profit	16,241	17,474	15,956
Demand creation expense	3,592	3,753	3,577
Operating overhead expense	9,534	8,949	7,934
Total selling and administrative expense	13,126	12,702	11,511
Interest expense (income), net	89	49	54
Other (income) expense, net	139	(78)	66
Income before income taxes	2,887	4,801	4,325
Income tax expense	348	772	2,392
NET INCOME	$ 2,539	$ 4,029	$ 1,933
Earnings per common share:
Basic (in dollars per share)	$ 1.63	$ 2.55	$ 1.19
Diluted (in dollars per share)	$ 1.60	$ 2.49	$ 1.17
Weighted average common shares outstanding:
Basic (in shares)	1,558.8	1,579.7	1,623.8
Diluted (in shares)	1,591.6	1,618.4	1,659.1

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 2,539	$ 4,029	$ 1,933
Other comprehensive income (loss), net of tax:
Change in net foreign currency translation adjustment	(148)	(173)	(6)
Change in net gains (losses) on cash flow hedges	(130)	503	76
Change in net gains (losses) on other	(9)	(7)	34
Total other comprehensive income (loss), net of tax	(287)	323	104
TOTAL COMPREHENSIVE INCOME	$ 2,252	$ 4,352	$ 2,037

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Consolidated Balance Sheets - USD ($) $ in Millions	May 31, 2020	May 31, 2019
Current assets:
Cash and equivalents	$ 8,348	$ 4,466
Short-term investments	439	197
Accounts receivable, net	2,749	4,272
Inventories	7,367	5,622
Prepaid expenses and other current assets	1,653	1,968
Total current assets	20,556	16,525
Property, plant and equipment, net	4,866	4,744
Operating lease right-of-use assets, net	3,097	0
Identifiable intangible assets, net	274	283
Goodwill	223	154
Deferred income taxes and other assets	2,326	2,011
TOTAL ASSETS	31,342	23,717
Current liabilities:
Current portion of long-term debt	3	6
Notes payable	248	9
Accounts payable	2,248	2,612
Current portion of operating lease liabilities	445	0
Accrued liabilities	5,184	5,010
Income taxes payable	156	229
Total current liabilities	8,284	7,866
Long-term debt	9,406	3,464
Operating lease liabilities	2,913	0
Deferred income taxes and other liabilities	2,684	3,347
Commitments and contingencies (Note 18)
Redeemable preferred stock	0	0
Shareholders' equity:
Capital in excess of stated value	8,299	7,163
Accumulated other comprehensive income (loss)	(56)	231
Retained earnings (deficit)	(191)	1,643
Total shareholders' equity	8,055	9,040
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	31,342	23,717
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

Consolidated Balance Sheets (Parenthetical) - shares shares in Millions	May 31, 2020	May 31, 2019
Class A Convertible Common Stock
Common Stock, shares outstanding	315	315
Class B Common Stock
Common Stock, shares outstanding	1,243	1,253

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Cash provided (used) by operations:
Net income	$ 2,539	$ 4,029	$ 1,933
Adjustments to reconcile net income to net cash provided (used) by operations:
Depreciation	721	705	747
Deferred income taxes	(380)	34	647
Stock-based compensation	429	325	218
Amortization, impairment and other	398	15	27
Net foreign currency adjustments	23	233	(99)
Changes in certain working capital components and other assets and liabilities:
(Increase) decrease in accounts receivable	1,239	(270)	187
(Increase) decrease in inventories	(1,854)	(490)	(255)
(Increase) decrease in prepaid expenses, operating lease right-of-use assets and other current and non-current assets	(654)	(203)	35
Increase (decrease) in accounts payable, accrued liabilities, operating lease liabilities and other current and non-current liabilities	24	1,525	1,515
Cash provided (used) by operations	2,485	5,903	4,955
Cash provided (used) by investing activities:
Purchases of short-term investments	(2,426)	(2,937)	(4,783)
Maturities of short-term investments	74	1,715	3,613
Sales of short-term investments	2,379	2,072	2,496
Additions to property, plant and equipment	(1,086)	(1,119)	(1,028)
Other investing activities	31	5	(22)
Cash provided (used) by investing activities	(1,028)	(264)	276
Cash provided (used) by financing activities:
Proceeds from borrowings, net of debt issuance costs	6,134	0	0
Increase (decrease) in notes payable, net	49	(325)	13
Proceeds from exercise of stock options and other stock issuances	885	700	733
Repurchase of common stock	(3,067)	(4,286)	(4,254)
Dividends — common and preferred	(1,452)	(1,332)	(1,243)
Other financing activities	(58)	(50)	(84)
Cash provided (used) by financing activities	2,491	(5,293)	(4,835)
Effect of exchange rate changes on cash and equivalents	(66)	(129)	45
Net increase (decrease) in cash and equivalents	3,882	217	441
Cash and equivalents, beginning of year	4,466	4,249	3,808
CASH AND EQUIVALENTS, END OF YEAR	8,348	4,466	4,249
Cash paid during the year for:
Interest, net of capitalized interest	140	153	125
Income taxes	1,028	757	529
Non-cash additions to property, plant and equipment	121	160	294
Dividends declared and not paid	$ 385	$ 347	$ 320

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, 2017						329		1,314
Beginning balance at May. 31, 2017	$ 12,407	$ 5,710	$ (213)	$ 6,907		$ 0		$ 3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock options exercised (in shares)								24
Stock options exercised	600	600
Repurchase of Class B Common Stock (in shares)								(70)
Repurchase of Class B Common Stock	(4,267)	(254)		(4,013)
Dividends on common stock and preferred stock	(1,265)			(1,265)
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	82	110		(28)
Stock-based compensation	218	218
Net income	1,933			1,933
Other comprehensive income (loss)	104		104
Ending Balance (in shares) at May. 31, 2018						329		1,272
Ending balance at May. 31, 2018	9,812	6,384	(92)	3,517		$ 0		$ 3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock options exercised (in shares)								18
Stock options exercised	539	539
Conversion to Class B Common Stock (in shares)						(14)		14
Conversion to Class B Common Stock	0
Repurchase of Class B Common Stock (in shares)								(54)
Repurchase of Class B Common Stock	(4,283)	(227)		(4,056)
Dividends on common stock and preferred stock	(1,360)			(1,360)
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	139	142		(3)
Stock-based compensation	325	325
Net income	4,029			4,029
Other comprehensive income (loss)	323		323
Ending Balance (in shares) at May. 31, 2019					315	315	1,253	1,253
Ending balance at May. 31, 2019	9,040	7,163	231	1,643		$ 0		$ 3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock options exercised (in shares)								20
Stock options exercised	703	703
Repurchase of Class B Common Stock (in shares)								(34)
Repurchase of Class B Common Stock	(3,033)	(161)		(2,872)
Dividends on common stock and preferred stock	(1,491)			(1,491)
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	156	165		(9)
Stock-based compensation	429	429
Net income	2,539			2,539
Other comprehensive income (loss)	(287)		(287)
Ending Balance (in shares) at May. 31, 2020					315	315	1,243	1,243
Ending balance at May. 31, 2020	$ 8,055	$ 8,299	$ (56)	$ (191)		$ 0		$ 3

Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Statement of Stockholders' Equity [Abstract]
Dividends declared per common share (in dollars per share)	$ 0.955	$ 0.86	$ 0.78
Dividends declared per preferred share (in dollars per share)	$ 0.10	$ 0.10	$ 0.10

Summary of Significant Accounting Policies

12 Months Ended

May 31, 2020

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, Hurley and Converse. The NIKE Brand is focused on performance athletic footwear, apparel, equipment, accessories and services across a wide range of sport categories, 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. The Hurley brand is focused on action sports and youth lifestyle apparel and accessories under the Hurley trademark. Sales and operating results of Hurley brand products, prior to its divestiture, are reported within the NIKE Brand's North America geographic operating segment. Refer to Note 20 — Acquisitions and Divestitures for information regarding the divestiture of the Company's wholly-owned subsidiary, Hurley. 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

Beginning in fiscal 2019, the Company adopted Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606). Prior to fiscal 2019, amounts have not been restated and continue to be reported in accordance with the Company's historical accounting policies. The Company's revenue recognition policies under Topic 606 are described in the following paragraphs and references to prior period policies under Accounting Standard Codification Topic 605 — Revenue Recognition (Topic 605), are included below in the event they are substantially different.

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 has passed to the customer, 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.

Transfer of control passes to wholesale customers upon shipment or upon receipt depending on the country of the sale and the agreement with the customer. Control passes to retail store customers at the time of sale and to substantially all digital commerce customers upon shipment. Prior to fiscal 2019, the requirements for recognizing revenue were met upon delivery to the customer. 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 a fulfillment cost 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. Prior to fiscal 2019, the Company's reserve balances were reported net of the

estimated cost of inventory for product returns and recognized within Accounts receivable, net for wholesale transactions and Accrued liabilities for the Company's direct to consumer business, 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 were significantly greater or lower than the reserves established, a reduction or increase to net revenues would be recorded in the period in which such determination was 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 product, television, digital and print advertising and 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 contract elements 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. The Company records these costs in Demand creation expense at the point in time it is obligated to its customers for the costs. This obligation may arise prior to the related advertisement being run.

Total advertising and promotion expenses, which the Company refers to as Demand creation expense, were $3,592 million, $3,753 million and $3,577 million for the years ended May 31, 2020, 2019 and 2018, respectively. Prepaid advertising and promotion expenses totaled $686 million and $773 million at May 31, 2020 and 2019, respectively, of which $326 million and $333 million, respectively, was recorded in Prepaid expenses and other current assets, and $360 million and $440 million, respectively, was 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, 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, including commercial paper, U.S. Treasury, U.S. Agency, money market funds, time deposits and corporate debt securities with maturities of 90 days or less at the date of purchase.

SHORT-TERM INVESTMENTS

Short-term investments consist of highly liquid investments, including commercial paper, U.S. Treasury, U.S. Agency, time deposits and corporate debt securities, with maturities over 90 days at the date of purchase. Debt securities the Company has the ability and positive intent to hold to maturity are carried at amortized cost. At May 31, 2020 and 2019, the Company did not hold any short-term investments classified as trading or held-to-maturity.

At May 31, 2020 and 2019, 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 other than temporary. 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 90 days at the date of purchase as current assets within Short-term investments on the Consolidated Balance Sheets.

Refer to Note 6 — 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 receivable from customers. The Company makes ongoing estimates relating to the collectability of its accounts receivable and maintains an allowance for estimated 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, such as the impacts of COVID–19, to determine the amount of the allowance. Accounts receivable with anticipated collection dates greater than 12 months from the balance sheet date and related allowances are considered non-current and recorded in Deferred income taxes and other assets. The allowance for uncollectible accounts receivable was $214 million and $30 million as of May 31, 2020 and 2019, respectively.

INVENTORY VALUATION

Inventories 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 product 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 and 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

Internal Use Software: Expenditures for major software purchases and software developed for internal use are capitalized and amortized over a 2 to 12-year period 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. In addition, 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

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. Events or changes in circumstances that may trigger interim impairment reviews include significant changes in business climate, operating results, planned investments in the reporting unit, planned divestitures or an expectation that the carrying amount may not be recoverable, among other factors.

For purposes of testing goodwill for impairment, the Company allocates goodwill across its reporting units, which are considered the Company's operating segments. The Company may first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit 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 the reporting unit 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 its related reporting units. If the carrying value of a reporting unit exceeds its fair value, the goodwill of that reporting unit is determined to be impaired and the Company will proceed with recording an impairment charge equal to the excess of the carrying value over the related fair value.

Indefinite-lived intangible assets primarily consist of acquired trade names and trademarks. The Company may first perform a qualitative assessment to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. If, after assessing the totality of events and circumstances, the Company determines it is more likely than not that the indefinite-lived intangible asset is not impaired, no quantitative fair value measurement is necessary. If a quantitative fair value measurement calculation is required for these intangible assets, the Company primarily utilizes the relief-from-royalty method. This method assumes trade names and trademarks have value to the extent their owner is relieved of the obligation to pay royalties for the benefits received from them. This method requires the Company to estimate the future revenues for the related brands, the appropriate royalty rate and the weighted average cost of capital. If the carrying value of the indefinite-lived intangible exceeds its fair value, the asset is determined to be impaired and the Company will proceed with recording an impairment charge equal to the excess of the carrying value over the related fair value.

OPERATING LEASES

Beginning in fiscal 2020, the Company adopted Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). Prior period amounts have not been restated and continue to be reported in accordance with the Company's historical accounting policies. The Company's lease recognition policies under Topic 842 are described in the following paragraphs.

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. 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. 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.

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 established by the Financial Accounting Standards Board (FASB) that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach and cost approach).

The levels of the fair value hierarchy are described below:


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


•	Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets and quoted prices for identical 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 6 — 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) in Total shareholders' equity.

The Company's global subsidiaries have various assets and liabilities, primarily receivables and payables, which are denominated in currencies other than their functional currency. These balance sheet items are subject to re-measurement, 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) (a component of Total shareholders' equity), 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 used 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 14 — 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 ten years from the date of grant. 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 restricted stock units is established by the market price on the date of grant.

Refer to Note 11 — 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.

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 9 — 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 12 — 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 extent to which the evolving COVID-19 pandemic impacts the Company's financial statements will depend on a number of factors, including the magnitude and duration of the pandemic. The Company expects it may have a material, adverse impact on future revenue growth as well as overall profitability and may continue to lead to higher than normal inventory levels, revised payment terms with certain wholesale customers, higher sales-related reserves, factory cancellation costs and a volatile effective tax rate driven by changes in the mix of earnings across the Company's jurisdictions.

RECENTLY ADOPTED ACCOUNTING STANDARDS

In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842), which replaced existing lease accounting guidance. The new standard is intended to provide enhanced transparency and comparability by requiring lessees to record ROU assets and corresponding lease liabilities on the balance sheet. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. The new guidance requires the Company to continue to classify leases as either an operating or finance lease, with classification affecting the pattern of expense recognition in the income statement. In addition, the new standard requires enhanced disclosure surrounding the amount, timing and uncertainty of cash flows arising from leasing agreements.

In July 2018, the FASB issued ASU No. 2018-11, which provided entities with an additional transition method. Under the new transition method, an entity initially applies the new standard at the adoption date, versus at the beginning of the earliest period presented, and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company elected this transition method and adopted Topic 842 using a modified retrospective approach in the first quarter of fiscal 2020 with the cumulative effect of initially applying the new standard recognized in Retained earnings at June 1, 2019. Comparative prior period information has not been adjusted and continues to be reported in accordance with previous lease accounting guidance in Accounting Standards Codification (ASC) Topic 840 - Leases.

Upon adoption, the Company elected the package of transition practical expedients which allowed the Company to carry forward prior conclusions related to: (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases and (iii) initial direct costs for existing leases. Additionally, the Company elected the practical expedient to not separate lease components from nonlease components for all real estate leases within the portfolio. The Company made an accounting policy election to not record leases with an initial term of 12 months or less on the Consolidated Balance Sheets and will recognize related lease payments in the Consolidated Statements of Income on a straight-line basis over the lease term.

In preparation for implementation, the Company executed changes to business processes, including implementing a software solution to assist with the new reporting requirements. The adoption of Topic 842 resulted in a $2.7 billion increase to total assets and total liabilities as of June 1, 2019. Upon adoption, the Company recognized $3.2 billion of total operating lease liabilities and $2.9 billion of operating lease ROU assets, as well as removed $348 million of existing deferred rent liabilities, which was recorded as an offset against the ROU assets. In addition, the Company removed $184 million of existing assets and liabilities related to build-to-suit lease arrangements. Several other asset and liability line items in the Company's Consolidated Balance Sheets were also impacted by immaterial amounts. The adoption of the standard did not have a material impact on the Consolidated Statements of Income or Consolidated Statements of Cash Flows. For more information on the Company's lease arrangements refer to Note 19 — Leases.

In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. The updated guidance requires companies to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Income tax effects of intra-entity transfers of inventory will continue to be deferred until the inventory has been sold to a third party. The Company adopted the standard on June 1, 2018, using a modified retrospective approach, with the cumulative effect of applying the new standard recognized in Retained earnings at the date of adoption. The adoption resulted in reductions to Retained earnings, Deferred income taxes and other assets, and Prepaid expenses and other current assets of $507 million, $422 million and $45 million, respectively, and an increase in Deferred income taxes and other liabilities of $40 million on the Consolidated Balance Sheets.

Inventories

12 Months Ended

May 31, 2020

Inventory Disclosure [Abstract]

Inventories

NOTE 2 — INVENTORIES

Inventory balances of $7,367 million and $5,622 million at May 31, 2020 and 2019, respectively, were substantially all finished goods.

Property, Plant and Equipment

12 Months Ended

May 31, 2020

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

NOTE 3 — PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment, net included the following:



	MAY 31,
(Dollars in millions)	2020		2019
Land and improvements	$	345	$	329
Buildings	2,442		2,445
Machinery and equipment	2,751		2,726
Internal-use software	1,483		1,609
Leasehold improvements	1,554		1,563
Construction in process	1,086		797
Total property, plant and equipment, gross	9,661		9,469
Less accumulated depreciation	4,795		4,725
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET	$	4,866	$	4,744

Capitalized interest was not material for the years ended May 31, 2020, 2019 and 2018.

Identifiable Intangible Assets and Goodwill

12 Months Ended

May 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Identifiable Intangible Assets and Goodwill

NOTE 4 — IDENTIFIABLE INTANGIBLE ASSETS AND GOODWILL

Identifiable intangible assets, net consist of indefinite-lived trademarks, acquired trademarks and other intangible assets. The following table summarizes the Company's Identifiable intangible assets, net balances as of May 31, 2020 and 2019:



	MAY 31,
	2020						2019
(Dollars in millions)	GROSS CARRYING AMOUNT		ACCUMULATED AMORTIZATION		NET CARRYING AMOUNT		GROSS CARRYING AMOUNT		ACCUMULATED AMORTIZATION		NET CARRYING AMOUNT
Indefinite-lived trademarks	$	246	$	—	$	246	$	281	$	—	$	281
Acquired trademarks and other	47		19		28		22		20		2
IDENTIFIABLE INTANGIBLE ASSETS, NET	$	293	$	19	$	274	$	303	$	20	$	283

Goodwill was $223 million and $154 million at May 31, 2020 and 2019, respectively and there were no accumulated impairment losses as of May 31, 2020 and 2019. Additionally, the impact to Goodwill during fiscal 2020 and 2019 as a result of acquisitions and divestitures was not material.

Accrued Liabilities

12 Months Ended

May 31, 2020

Accrued Liabilities, Current [Abstract]

Accrued Liabilities

NOTE 5 — ACCRUED LIABILITIES

Accrued liabilities included the following:



	MAY 31,
(Dollars in millions)	2020		2019
Compensation and benefits, excluding taxes	$	1,248	$	1,232
Sales-related reserves	1,178		1,218
Allowance for cumulative foreign currency translation losses⁽¹⁾	405		—
Endorsement compensation	393		424
Dividends payable	384		346
Import and logistics costs	273		296
Taxes other than income taxes payable	202		234
Fair value of derivatives	190		52
Liabilities held-for-sale⁽¹⁾	146		—
Advertising and marketing	97		114
Collateral received from counterparties to hedging instruments	—		289
Other⁽²⁾	668		805
TOTAL ACCRUED LIABILITIES	$	5,184	$	5,010


(1)	Refer to Note 20 — Acquisitions and Divestitures for additional information.

(2)

Other consists of various accrued expenses with no individual item accounting for more than 5% of the total Accrued liabilities balance at May 31, 2020 and 2019.

Fair Value Measurements

12 Months Ended

May 31, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

NOTE 6 — 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, 2020 and 2019 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, 2020
(Dollars in millions)	ASSETS AT FAIR VALUE		CASH AND EQUIVALENTS		SHORT-TERM INVESTMENTS
Cash	$	596	$	596	$	—
Level 1:
U.S. Treasury securities	1,204		800		404
Level 2:
Commercial paper and bonds	32		—		32
Money market funds	5,973		5,973		—
Time deposits	981		979		2
U.S. Agency securities	1		—		1
Total Level 2	6,987		6,952		35
TOTAL	$	8,787	$	8,348	$	439



	MAY 31, 2019
(Dollars in millions)	ASSETS AT FAIR VALUE		CASH AND EQUIVALENTS		SHORT-TERM INVESTMENTS
Cash	$	853	$	853	$	—
Level 1:
U.S. Treasury securities	347		200		147
Level 2:
Commercial paper and bonds	34		1		33
Money market funds	1,637		1,637		—
Time deposits	1,791		1,775		16
U.S. Agency securities	1		—		1
Total Level 2	3,463		3,413		50
TOTAL	$	4,663	$	4,466	$	197

As of May 31, 2020, the Company held $396 million of available-for-sale debt securities with maturity dates within one year and $43 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 $62 million, $82 million and $70 million for the years ended May 31, 2020, 2019 and 2018, respectively.

The Company elects to record the gross assets and liabilities of its derivative financial instruments 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. Any amounts of non-cash collateral received, such as securities, are not recorded on the Consolidated Balance Sheets pursuant to U.S. GAAP. For further information related to credit risk, refer to Note 14 — 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 as of May 31, 2020 and 2019 and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement.



	MAY 31, 2020
	DERIVATIVE ASSETS						DERIVATIVE LIABILITIES
(Dollars in millions)	ASSETS AT FAIR VALUE		OTHER CURRENT ASSETS		OTHER LONG-TERM ASSETS		LIABILITIES AT FAIR VALUE		ACCRUED LIABILITIES		OTHER LONG-TERM LIABILITIES
Level 2:
Foreign exchange forwards and options⁽¹⁾	$	94	$	91	$	3	$	205	$	188	$	17
Embedded derivatives	1		1		—		2		2		—
TOTAL	$	95	$	92	$	3	$	207	$	190	$	17


(1)	If the foreign exchange derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions would have been reduced by $76 million as of May 31, 2020. As of that date, no amount of cash collateral had been received or posted on the derivative asset and liability balances related to these foreign exchange derivative instruments.



	MAY 31, 2019
	DERIVATIVE ASSETS						DERIVATIVE LIABILITIES
(Dollars in millions)	ASSETS AT FAIR VALUE		OTHER CURRENT ASSETS		OTHER LONG-TERM ASSETS		LIABILITIES AT FAIR VALUE		ACCRUED LIABILITIES		OTHER LONG-TERM LIABILITIES
Level 2:
Foreign exchange forwards and options⁽¹⁾	$	611	$	611	$	—	$	51	$	51	$	—
Embedded derivatives	11		5		6		3		1		2
TOTAL	$	622	$	616	$	6	$	54	$	52	$	2

(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 $50 million as of May 31, 2019. As of that date, the Company had received $289 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, 2019.

No transfers among the levels within the fair value hierarchy occurred during the years ended May 31, 2020 or 2019.

For additional information related to the Company's derivative financial instruments, refer to Note 14 — Risk Management and Derivatives. For fair value information regarding Notes payable and Long-term debt, refer to Note 7 — Short-Term Borrowings and Credit Lines and Note 8 — 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 20 — Acquisitions and Divestitures, the Company met the criteria to recognize the related assets and liabilities of its Brazil, Argentina, Chile and Uruguay entities as held-for-sale in the third quarter of fiscal 2020 and the classification of these balances remain as such, as of May 31, 2020. 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 at the date of close. The carrying value of the Argentina, Chile and Uruguay disposal groups exceeded their fair value, less costs to sell and as a result, the Company recognized a non-recurring impairment charge of $405 million. This charge was primarily due to the anticipated release of non-cash cumulative foreign currency translation losses which were included as part of the carrying value of the Argentina, Chile and Uruguay disposal groups when measuring for impairment. For the fiscal year ended May 31, 2020, the charge was recognized in Other (income) expense, net on the Consolidated Statements of Income, classified within Corporate, and a corresponding allowance within Accrued Liabilities on the Consolidated Balance Sheets.

All other assets or liabilities required to be measured at fair value on a non-recurring basis as of May 31, 2020 were immaterial. As of May 31, 2019, all assets or liabilities required to be measured at fair value on a non-recurring basis were immaterial.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Short-Term Borrowings and Credit Lines

12 Months Ended

May 31, 2020

Debt Disclosure [Abstract]

Short-Term Borrowings and Credit Lines

NOTE 7 — SHORT-TERM BORROWINGS AND CREDIT LINES

Notes payable as of May 31, 2020 and 2019 are summarized below:



	MAY 31,
	2020				2019
(Dollars in millions)	BORROWINGS		INTEREST RATE		BORROWINGS		INTEREST RATE
Notes payable:
Commercial paper⁽¹⁾	$	248	1.65	%	$	—	0.00	%
U.S. operations	—		0.00	%	2		0.00	%	⁽²⁾
Non-U.S. operations	—		0.00	%	7		26.00	%	⁽²⁾
TOTAL NOTES PAYABLE	$	248			$	9


(1)	Commercial paper borrowings with original maturities greater than three months are included in Proceeds from borrowings, net of debt issuance costs on the Consolidated Statements of Cash Flows.


(2)	Weighted average interest rate includes non-interest bearing overdrafts.

The carrying amounts reflected in the Consolidated Balance Sheets for Notes payable approximate fair value.

On August 16, 2019, the Company entered into a 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 upon lender approval. The facility matures on August 16, 2024, with a one year extension option prior to any anniversary of the closing date, provided that in no event shall it extend beyond August 16, 2026. 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 LIBOR plus 0.46%. The facility fee is 0.04% of the total commitment. This facility replaces the prior $2 billion credit facility agreement entered into on August 28, 2015, which would have matured August 28, 2020. As of and for the periods ended May 31, 2020 and 2019, no amounts were outstanding under either committed credit facility.

On April 6, 2020, the Company entered into a committed credit facility agreement with a syndicate of banks which provides for up to $2 billion of borrowings, in addition to the existing credit facility discussed above. The new facility matures on April 5, 2021. 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 LIBOR plus 1.05%. The facility fee is 0.20% of the total commitment. As of May 31, 2020, no amounts were outstanding under this committed credit facility.

Long-Term Debt

12 Months Ended

May 31, 2020

Debt Disclosure [Abstract]

Long-Term Debt

NOTE 8 — 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 and Yen in millions)	ORIGINAL PRINCIPAL		INTEREST RATE		INTEREST PAYMENTS	2020		2019
Corporate Term Debt:⁽¹⁾⁽²⁾
May 1, 2023	$	500	2.25	%	Semi-Annually	$	499	$	498
March 27, 2025	1,000		2.40	%	Semi-Annually	994		—
November 1, 2026	1,000		2.38	%	Semi-Annually	995		994
March 27, 2027	1,000		2.75	%	Semi-Annually	994		—
March 27, 2030	1,500		2.85	%	Semi-Annually	1,489		—
March 27, 2040	1,000		3.25	%	Semi-Annually	985		—
May 1, 2043	500		3.63	%	Semi-Annually	495		495
November 1, 2045	1,000		3.88	%	Semi-Annually	984		983
November 1, 2046	500		3.38	%	Semi-Annually	491		491
March 27, 2050	1,500		3.38	%	Semi-Annually	1,480		—
Japanese Yen Notes:⁽³⁾
August 20, 2001 through November 20, 2020	¥	9,000	2.60	%	Quarterly	$	2	$	6
August 20, 2001 through November 20, 2020	4,000		2.00	%	Quarterly	1		3
Total						9,409		3,470
Less current maturities						3		6
TOTAL LONG-TERM DEBT						$	9,406	$	3,464


(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.


(3)	NIKE Logistics YK assumed a total of ¥13.0 billion in loans as part of its agreement to purchase a distribution center in Japan, which serves as collateral for the loans. These loans mature in equal quarterly installments during the period August 20, 2001 through November 20, 2020.

The scheduled maturity of Long-term debt in each of the years ending May 31, 2021 through 2025 are $3 million, $0 million, $500 million, $0 million and $1,000 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 $10,645 million at May 31, 2020 and $3,524 million at May 31, 2019.

Income Taxes

12 Months Ended

May 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 9 — INCOME TAXES

Income before income taxes is as follows:



	YEAR ENDED MAY 31,
(Dollars in millions)	2020			2019		2018
Income before income taxes:
United States	$	2,954		$	593	$	744
Foreign	(67		)	4,208		3,581
TOTAL INCOME BEFORE INCOME TAXES	$	2,887		$	4,801	$	4,325

The provision for income taxes is as follows:



	YEAR ENDED MAY 31,
(Dollars in millions)	2020			2019			2018
Current:
United States
Federal	$	(109	)	$	74		$	1,167
State	81			56			45
Foreign	756			608			533
Total Current	728			738			1,745
Deferred:
United States
Federal	(231		)	(33		)	595
State	(47		)	(9		)	25
Foreign	(102		)	76			27
Total Deferred	(380		)	34			647
TOTAL INCOME TAX EXPENSE	$	348		$	772		$	2,392

On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (the “Tax Act”) which significantly changed previous U.S. tax laws, including a reduction in the corporate tax rate from 35% to 21% and a one-time transition tax on deemed repatriation of undistributed foreign earnings. For fiscal 2018, the change in the corporate tax rate resulted in a blended U.S. federal statutory rate for the Company of approximately 29%.

As of May 31, 2020 and 2019, long-term income taxes payable were $757 million and $902 million, respectively, and were included within Deferred income taxes and other assets on the Consolidated Balance Sheets.

A reconciliation from the U.S. statutory federal income tax rate to the effective income tax rate is as follows:



	YEAR ENDED MAY 31,
	2020		2019		2018
Federal income tax rate	21.0	%	21.0	%	29.2	%
State taxes, net of federal benefit	0.8	%	1.0	%	0.8	%
Foreign earnings	5.9	%	-1.1	%	-19.2	%
Foreign-derived intangible income benefit related to the Tax Act	-8.1	%	—	%	—	%
Transition tax related to the Tax Act	—	%	—	%	43.3	%
Remeasurement of deferred tax assets and liabilities related to the Tax Act	—	%	—	%	3.7	%
Excess tax benefits from share-based compensation	-7.2	%	-3.6	%	-5.3	%
Income tax audits and contingency reserves	-1.4	%	1.3	%	2.9	%
U.S. research and development tax credit	-1.8	%	-1.0	%	-0.6	%
Other, net	2.9	%	-1.5	%	0.5	%
EFFECTIVE INCOME TAX RATE	12.1	%	16.1	%	55.3	%

The effective tax rate for the fiscal year ended May 31, 2020 was lower than the effective tax rate for the fiscal year ended May 31, 2019 due to increased benefits from discrete items such as stock-based compensation. The foreign earnings rate impact shown above for the fiscal year ended May 31, 2020 includes withholding taxes of 6.5% and held for sale accounting items of

2.9%, offset by a benefit for statutory rate differences and other items of 3.5%. The foreign derived intangible income benefit reflects U.S. tax benefits introduced by the Tax Act for companies serving foreign markets. This benefit became available to the Company as a result of a restructuring of its intellectual property interests. Income tax audit and contingency reserves reflect benefits associated with the modification of the treatment of certain research and development expenditures of 2.9% offset by an increase related to the resolution of an audit by the U.S. Internal Revenue Service ("IRS") and other matters of 1.5%. Included in other is the deferral of income tax effects related to intra-entity transfers of inventory of 2.3% and other items of 0.6%.

The effective tax rate for the year fiscal ended May 31, 2019 was lower than the effective tax rate for the fiscal year ended May 31, 2018 due to significant changes related to the enactment of the Tax Act in fiscal year 2018 and reduction in the U.S. federal statutory rate to 21% in fiscal year 2019.

Deferred tax assets and liabilities comprise the following as of:



	MAY 31,
(Dollars in millions)	2020			2019
Deferred tax assets:
Inventories	$	84		$	66
Sales return reserves	115			128
Deferred compensation	295			271
Stock-based compensation	168			156
Reserves and accrued liabilities	120			101
Operating lease liabilities	491			—
Capitalized research and development expenditures	189			—
Net operating loss carry-forwards	21			81
Other	127			125
Total deferred tax assets	1,610			928
Valuation allowance	(26		)	(88		)
Total deferred tax assets after valuation allowance	1,584			840
Deferred tax liabilities:
Foreign withholding tax on undistributed earnings of foreign subsidiaries	(165		)	(235		)
Property, plant and equipment	(232		)	(188		)
Right-of-use assets	(423		)	—
Other	(32		)	(41		)
Total deferred tax liabilities	(852		)	(464		)
NET DEFERRED TAX ASSET	$	732		$	376

The above amounts exclude deferred taxes of the Company's Brazil, Argentina, Chile and Uruguay operations which are classified as held-for-sale on the Consolidated Balance Sheets as of May 31, 2020. See Note 20 — Acquisitions and Divestitures for additional information.

The following is a reconciliation of the changes in the gross balance of unrecognized tax benefits as of:



	MAY 31,
(Dollars in millions)	2020			2019			2018
Unrecognized tax benefits, beginning of the period	$	808		$	698		$	461
Gross increases related to prior period tax positions	181			85			19
Gross decreases related to prior period tax positions	(171		)	(32		)	(12		)
Gross increases related to current period tax positions	50			81			249
Settlements	(58		)	—			—
Lapse of statute of limitations	(28		)	(35		)	(20		)
Changes due to currency translation	(11		)	11			1
UNRECOGNIZED TAX BENEFITS, END OF THE PERIOD	$	771		$	808		$	698

As of May 31, 2020, total gross unrecognized tax benefits, excluding related interest and penalties, were $771 million, $536 million of which 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 assets 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 decreased by $16 million during the year ended May 31, 2020, increased by $17 million during the fiscal year ended May 31, 2019 and decreased by $14 million during the fiscal year ended May 31, 2018. As of May 31, 2020 and 2019, accrued interest and penalties related to uncertain tax positions were $158 million and $174 million, respectively (excluding federal benefit).

The Company is subject to taxation in the United States, as well as various state and foreign jurisdictions. The Company is currently under audit by the 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 2009 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 current and prior periods, and the Company's Netherlands income taxes in the future could increase.

The Company historically provided for U.S. income taxes on the undistributed earnings of foreign subsidiaries unless they were considered indefinitely reinvested outside the United States. As a result of the enactment of the Tax Act, in fiscal 2018 the Company reevaluated its historic indefinite reinvestment assertion and determined that any historical or future undistributed earnings of foreign subsidiaries are no longer considered to be indefinitely reinvested. Effective January 1, 2020, however, the tax law in the Netherlands, one of the Company's major jurisdictions, changed. As a result of the change in law, the Company's undistributed earnings in the Netherlands are subject to withholding tax upon distribution. It is the Company's intention to indefinitely reinvest the historical earnings of its foreign subsidiaries outside North America prior to May 31, 2020 to ensure there is sufficient working capital to expand operations outside the United States. Accordingly, the Company has not recorded a deferred tax liability related to foreign withholding taxes on approximately $8.1 billion of undistributed earnings of these foreign subsidiaries as of May 31, 2020. Withholding taxes of approximately $1.2 billion would be payable upon the remittance of these undistributed earnings as of May 31, 2020.

A portion of the Company's foreign operations benefit from a tax holiday, which is set to expire in 2021. 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 was $238 million, $167 million and $126 million for the fiscal years ended May 31, 2020, 2019 and 2018, respectively. The benefit of the tax holiday on diluted earnings per common share was $0.15, $0.10 and $0.08 for the fiscal years ended May 31, 2020, 2019 and 2018, respectively.

Deferred tax assets at May 31, 2020 and 2019 were reduced by a valuation allowance. For the fiscal year ended May 31, 2020, a valuation allowance was provided for U.S. foreign tax credit carry-forwards and on tax benefits generated by entities with operating losses. For the fiscal year ended May 31, 2019, the valuation allowance provided primarily related to tax benefits generated by certain entities with operating losses. There was a $62 million net decrease in the valuation allowance for the fiscal year ended May 31, 2020, compared to a $7 million net decrease for the fiscal year ended May 31, 2019, and $13 million net increase for the year ended May 31, 2018. The decrease in the Company's net valuation allowance for the fiscal year ended May 31, 2020 is primarily related to the classification of the Company's Brazil and Argentina operations as held-for-sale on the Consolidated Balance Sheets as of May 31, 2020. See Note 20 — Acquisitions and Divestitures for additional information.

The Company has recorded deferred tax assets of $15 million at May 31, 2020 for U.S. foreign tax credit carry-forwards which will begin to expire in 2030.

The Company has available domestic and foreign loss carry-forwards of $83 million at May 31, 2020. If not utilized, such losses will expire as follows:



	YEAR ENDING MAY 31,
(Dollars in millions)	2021		2022		2023		2024		2025-2040		INDEFINITE		TOTAL
Net operating losses	$	—	$	3	$	2	$	2	$	59	$	17	$	83

The above amounts at May 31, 2020 exclude net operating loss carry-forwards of the Company's Brazil, Argentina and Chile operations which are included in assets held-for-sale on the Consolidated Balance Sheets at May 31, 2020. See Note 20 — Acquisitions and Divestitures for additional information.

Redeemable Preferred Stock

12 Months Ended

May 31, 2020

Temporary Equity Disclosure [Abstract]

Redeemable Preferred Stock

NOTE 10 — 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, 2020, 2019 and 2018. 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.

Common Stock and Stock-Based Compensation

12 Months Ended

May 31, 2020

Share-based Payment Arrangement, Noncash Expense [Abstract]

Common Stock and Stock-Based Compensation

NOTE 11 — 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 718 million previously unissued shares of Class B Common Stock in connection with equity awards granted under the Stock Incentive Plan. The Stock Incentive Plan authorizes the grant of non-statutory stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units and performance-based awards. The exercise price for stock options and stock appreciation rights may not be less than the fair market value of the underlying shares on the date of grant. A committee of the Board of Directors administers the Stock Incentive Plan. The committee has the authority to determine the employees to whom awards will be made, the amount of the awards and the other terms and conditions of the awards. The Company generally grants stock options and restricted stock on an annual basis. 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)	2020		2019		2018
Stock options⁽¹⁾	$	237	$	207	$	149
ESPPs	53		40		34
Restricted stock	139		78		35
TOTAL STOCK-BASED COMPENSATION EXPENSE	$	429	$	325	$	218


(1)	Expense for stock options includes the expense associated with stock appreciation rights. Accelerated stock option expense is recorded for employees meeting certain retirement eligibility requirements. Accelerated stock option expense was $53 million, $41 million and $18 million for the fiscal years ended May 31, 2020, 2019 and 2018, respectively.

The income tax benefit related to stock-based compensation expense was $207 million, $175 million and $230 million for the fiscal years ended May 31, 2020, 2019 and 2018, respectively, and reported within Income tax expense.

STOCK OPTIONS

The weighted average fair value per share of the options granted during the years ended May 31, 2020, 2019 and 2018, computed as of the grant date using the Black-Scholes pricing model, was $18.71, $22.78 and $9.82, respectively. The weighted average assumptions used to estimate these fair values were as follows:



	YEAR ENDED MAY 31,
	2020		2019		2018
Dividend yield	1.0	%	1.0	%	1.2	%
Expected volatility	23.0	%	26.6	%	16.4	%
Weighted average expected life (in years)	6.0		6.0		6.0
Risk-free interest rate	1.5	%	2.8	%	2.0	%

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

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, 2019	91.3		$	50.59
Exercised	(20.1	)	35.26
Forfeited	(2.2	)	75.74
Granted	19.1		85.29
Options outstanding as of May 31, 2020	88.1		$	60.98


(1)	Includes stock appreciation rights transactions.

Options exercisable as of May 31, 2020 were 48.5 million and had a weighted average option price of $46.91 per share. The aggregate intrinsic value for options outstanding and exercisable at May 31, 2020 was $3,316 million and $2,506 million, respectively. The total intrinsic value of the options exercised during the years ended May 31, 2020, 2019 and 2018 was $1,161 million, $938 million and $889 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 at May 31, 2020 was 6.2 years and 4.5 years, respectively. As of May 31, 2020, the Company had $411 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 2.6 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 employee stock purchase plans (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 2.7 million, 2.5 million and 3.1 million shares during each of the fiscal years ended May 31, 2020, 2019 and 2018, 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 are entitled to dividend equivalent cash payments upon vesting. The number 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 unit activity under the plan discussed above:



	SHARES		WEIGHTED AVERAGE GRANT DATE FAIR VALUE
	(In millions)
Nonvested as of May 31, 2019	4.4		$	70.93
Vested	(1.1	)	72.64
Forfeited	(0.3	)	79.62
Granted	3.8		88.26
Nonvested as of May 31, 2020	6.8		$	79.84

The weighted average fair value per share of restricted stock and restricted stock units granted for the years ended May 31, 2020, 2019 and 2018, computed as of the grant date, was $88.26, $80.95, and $62.51, respectively. During the years ended May 31, 2020, 2019 and 2018, the aggregate fair value of restricted stock and restricted stock units vested was $98 million, $44 million and $113 million, respectively, computed as of the date of vesting. As of May 31, 2020, the Company had $342 million of unrecognized compensation costs from restricted stock and restricted stock units, net of estimated forfeitures, to be recognized in Cost of sales or Operating overhead expense, as applicable, over a weighted average remaining period of 2.7 years.

Earnings Per Share

12 Months Ended

May 31, 2020

Earnings Per Share [Abstract]

Earnings Per Share

NOTE 12 — EARNINGS PER SHARE

The following is a reconciliation from basic earnings per common share to diluted earnings per common share. The computations of diluted earnings per common share excluded options, including shares under ESPPs, and restricted stock to purchase an additional 30.6 million, 17.5 million and 42.9 million shares of common stock outstanding for the fiscal years ended May 31, 2020, 2019 and 2018, respectively, because the options and restricted stock were anti-dilutive.



	YEAR ENDED MAY 31,
(In millions, except per share data)	2020		2019		2018
Net income available to common stockholders	$	2,539	$	4,029	$	1,933
Determination of shares:
Weighted average common shares outstanding	1,558.8		1,579.7		1,623.8
Assumed conversion of dilutive stock options and awards	32.8		38.7		35.3
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING	1,591.6		1,618.4		1,659.1
Earnings per common share:
Basic	$	1.63	$	2.55	$	1.19
Diluted	$	1.60	$	2.49	$	1.17

Benefit Plans

12 Months Ended

May 31, 2020

Retirement Benefits [Abstract]

Benefit Plans

NOTE 13 — 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 $107 million, $90 million and $80 million and included in Cost of sales or Operating overhead expense, as applicable, for the years ended May 31, 2020, 2019 and 2018, respectively. The terms of the plan also allow for annual discretionary profit sharing contributions, as recommended by senior management and approved by the Board of Directors, to the accounts of eligible U.S. employees who work at least 1,000 hours in a year. For the fiscal year ended May 31, 2020, there were no profit sharing contributions made to the plan. Profit sharing contributions of $37 million and $59 million were made to the plan and included in Cost of sales or Operating overhead expense, as applicable, for the years ended May 31, 2019 and 2018, respectively.

The Company also has a Long-Term Incentive Plan (LTIP) adopted by the Board of Directors and approved by shareholders in September 1997 and later amended and approved in fiscal 2007 and fiscal 2012. The Company recognized $66 million, $83 million and $33 million of Operating overhead expense related to cash awards under the LTIP during the years ended May 31, 2020, 2019 and 2018, respectively.

The Company allows certain highly compensated employees and non-employee directors of the Company to defer compensation under a nonqualified deferred compensation plan. Deferred compensation plan liabilities were $725 million and $647 million at

May 31, 2020 and 2019, respectively, and primarily classified as non-current 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 $79 million and $73 million at May 31, 2020 and 2019, respectively, and primarily classified as non-current in Deferred income taxes and other liabilities on the Consolidated Balance Sheets.

Risk Management and Derivatives

12 Months Ended

May 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Risk Management and Derivatives

NOTE 14 — 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, 2020 are designated as foreign currency cash flow hedges, primarily for Euro/U.S. Dollar, British Pound/Euro, Japanese Yen/U.S. Dollar and Chinese Yuan/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 as of May 31, 2020 and 2019:



	DERIVATIVE ASSETS
	BALANCE SHEET LOCATION	MAY 31,
(Dollars in millions)	BALANCE SHEET LOCATION	2020		2019
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	$	43	$	509
Foreign exchange forwards and options	Deferred income taxes and other assets	1		—
Total derivatives formally designated as hedging instruments		44		509
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	48		102
Embedded derivatives	Prepaid expenses and other current assets	1		5
Foreign exchange forwards and options	Deferred income taxes and other assets	2		—
Embedded derivatives	Deferred income taxes and other assets	—		6
Total derivatives not designated as hedging instruments		51		113
TOTAL DERIVATIVE ASSETS		$	95	$	622



	DERIVATIVE LIABILITIES
	BALANCE SHEET LOCATION	MAY 31,
(Dollars in millions)	BALANCE SHEET LOCATION	2020		2019
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options	Accrued liabilities	$	173	$	5
Foreign exchange forwards and options	Deferred income taxes and other liabilities	17		—
Total derivatives formally designated as hedging instruments		190		5
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	Accrued liabilities	15		46
Embedded derivatives	Accrued liabilities	2		1
Embedded derivatives	Deferred income taxes and other liabilities	—		2
Total derivatives not designated as hedging instruments		17		49
TOTAL DERIVATIVE LIABILITIES		$	207	$	54

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, 2020, 2019 and 2018:



	YEAR ENDED MAY 31,
	2020					2019						2018
(Dollars in millions)	TOTAL		AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY			TOTAL			AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY			TOTAL		AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY
Revenues	$	37,403	$	(17	)	$	39,117		$	(5	)	$	36,397	$	34
Cost of sales	21,162		364			21,643			53			20,441		(90		)
Demand creation expense	3,592		(2		)	3,753			—			3,577		1
Other (income) expense, net	139		181			(78		)	35			66		(69		)
Interest expense (income), net	89		(7		)	49			(7		)	54		(7		)

The following tables present the amounts affecting the Consolidated Statements of Income for the years ended May 31, 2020, 2019 and 2018:



(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,
	2020		2019		2018				2020			2019			2018
Derivatives designated as cash flow hedges:
Foreign exchange forwards and options	$	28	$	14	$	19		Revenues	$	(17	)	$	(5	)	$	34
Foreign exchange forwards and options	283		405		(50		)	Cost of sales	364			53			(90		)
Foreign exchange forwards and options	1		2		1			Demand creation expense	(2		)	—			1
Foreign exchange forwards and options	90		156		(19		)	Other (income) expense, net	181			35			(69		)
Interest rate swaps⁽²⁾	—		—		—			Interest expense (income), net	(7		)	(7		)	(7		)
Total designated cash flow hedges	$	402	$	577	$	(49	)		$	519		$	76		$	(131	)


(1)	For the fiscal years ended May 31, 2020, 2019 and 2018, 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)	2020			2019		2018
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	$	76		$	166	$	(57	)	Other (income) expense, net
Embedded derivatives	(1		)	7		(4		)	Other (income) expense, net

CASH FLOW HEDGES

All changes in fair value of derivatives designated as cash flow hedges are recorded in Accumulated other comprehensive income (loss) until Net income is affected by the variability of cash flows of the hedged transaction. Effective hedge results are classified in the Consolidated Statements of Income in the same manner as the underlying exposure. Derivative instruments designated as cash flow hedges must be discontinued when it is no longer probable the forecasted hedged transaction will occur in the initially identified time period. The gains and losses associated with discontinued derivative instruments in Accumulated other comprehensive income (loss) will be recognized immediately in Other (income) expense, net, if it is probable the forecasted hedged transaction will not occur by the end of the initially identified time period or within an additional two-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. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Company accounts for the derivative as an undesignated instrument as discussed below.

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 cost exposures, non-functional currency denominated external and intercompany revenues, demand creation expenses, investments in U.S. Dollar denominated available-for-sale debt securities and certain other intercompany transactions.

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

The Company's policy permits the utilization of derivatives to reduce its foreign currency exposures where internal netting or other strategies cannot be effectively employed. Typically, the Company may enter into hedge contracts starting up to 12 to 24 months in advance of the forecasted transaction and may place incremental hedges up to 100% of the exposure by the time the forecasted transaction occurs. The total notional amount of outstanding foreign currency derivatives designated as cash flow hedges was $8.1 billion as of May 31, 2020.

As of May 31, 2020, approximately $374 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, 2020, the maximum term over which the Company hedges exposures to the variability of cash flows for its forecasted transactions was 24 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. All interest rate swaps designated as fair value hedges of the related long-term debt meet the shortcut method requirements under U.S. GAAP. Accordingly, changes in the fair values of the interest rate swaps are considered to exactly offset changes in the fair value of the underlying long-term debt. The Company had no interest rate swaps designated as fair value hedges as of May 31, 2020.

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, 2020.

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 and/or the embedded derivative contracts. 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 re-measurement gain or loss from the hedged balance sheet position and/or embedded derivative contract. The total notional amount of outstanding undesignated derivative instruments was $4.1 billion as of May 31, 2020.

EMBEDDED DERIVATIVES

As part of the foreign currency adjustment program described above, an embedded derivative contract is created upon the factory's acceptance of NIKE's purchase order for currencies within the factory currency exposure indices that are neither the U.S. Dollar nor the local or functional currency of the factory. In addition, embedded derivative contracts are created when the Company enters into certain other contractual agreements which have payments that are indexed to currencies that are not the functional currency of either substantial party to the contracts. Embedded derivative contracts are treated as foreign currency forward contracts that are bifurcated from the related contract and recorded at fair value as a derivative asset or liability on the Consolidated Balance Sheets with their corresponding change in fair value recognized in Other (income) expense, net, through the date the foreign currency fluctuations cease to exist.

At May 31, 2020, the total notional amount of embedded derivatives outstanding was approximately $281 million.

CREDIT RISK

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

The Company's derivative contracts contain credit risk-related contingent features designed to protect against significant deterioration in counterparties' creditworthiness and their ultimate ability to settle outstanding derivative contracts in the normal course of business. The Company's bilateral credit-related contingent features generally require the owing entity, either the Company or the derivative counterparty, to post collateral for the portion of the fair value in excess of $50 million should the fair value of outstanding derivatives per counterparty be greater than $50 million. Additionally, a certain level of decline in credit rating of either the Company or the counterparty could also trigger collateral requirements. As of May 31, 2020, the Company was in compliance with all credit risk-related contingent features, and had derivative instruments with such features in a net liability position of $137 million. However, no derivative instruments with credit risk-related contingent features in a net liability position were greater than $50 million by counterparty. Accordingly, the Company was not required to post any collateral as a result of these contingent features. Further, as of May 31, 2020, the Company had received no 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 6 — Fair Value Measurements.

Accumulated Other Comprehensive Income (Loss)

12 Months Ended

May 31, 2020

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss)

NOTE 15 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The changes in Accumulated other comprehensive income (loss), net of tax, were as follows:



(Dollars in millions)	FOREIGN CURRENCY TRANSLATION ADJUSTMENT⁽¹⁾			CASH FLOW HEDGES			NET INVESTMENT HEDGES⁽¹⁾		OTHER			TOTAL
Balance at May 31, 2019	$	(346	)	$	520		$	115	$	(58	)	$	231
Other comprehensive income (loss):
Other comprehensive gains (losses) before reclassifications⁽²⁾	(149		)	387			—		(8		)	230
Reclassifications to net income of previously deferred (gains) losses⁽³⁾	1			(517		)	—		(1		)	(517		)
Total other comprehensive income (loss)	(148		)	(130		)	—		(9		)	(287		)
Balance at May 31, 2020	$	(494	)	$	390		$	115	$	(67	)	$	(56	)


(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, $(15) million, $0 million, $1 million and $(14) million, respectively.


(3)	Net of tax (benefit) expense of $0 million, $2 million, $0 million, $0 million and $2 million, respectively.



(Dollars in millions)	FOREIGN CURRENCY TRANSLATION ADJUSTMENT⁽¹⁾			CASH FLOW HEDGES			NET INVESTMENT HEDGES⁽¹⁾		OTHER			TOTAL
Balance at May 31, 2018	$	(173	)	$	17		$	115	$	(51	)	$	(92	)
Other comprehensive income (loss):
Other comprehensive gains (losses) before reclassifications⁽²⁾	(173		)	573			—		10			410
Reclassifications to net income of previously deferred (gains) losses⁽³⁾	—			(70		)	—		(17		)	(87		)
Total other comprehensive income (loss)	(173		)	503			—		(7		)	323
Balance at May 31, 2019	$	(346	)	$	520		$	115	$	(58	)	$	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, $(4) million, $0 million, $1 million and $(3) million, respectively.


(3)	Net of tax (benefit) expense of $0 million, $6 million, $0 million, $0 million and $6 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)	2020			2019
Gains (losses) on foreign currency translation adjustment	$	(1	)	$	—		Other (income) expense, net
Total before tax	(1		)	—
Tax (expense) benefit	—			—
Gain (loss) net of tax	(1		)	—
Gains (losses) on cash flow hedges:
Foreign exchange forwards and options	$	(17	)	(5		)	Revenues
Foreign exchange forwards and options	364			53			Cost of sales
Foreign exchange forwards and options	(2		)	—			Demand creation expense
Foreign exchange forwards and options	181			35			Other (income) expense, net
Interest rate swaps	(7		)	(7		)	Interest expense (income), net
Total before tax	519			76
Tax (expense) benefit	(2		)	(6		)
Gain (loss) net of tax	517			70
Gains (losses) on other	1			17			Other (income) expense, net
Total before tax	1			17
Tax (expense) benefit	—			—
Gain (loss) net of tax	1			17
Total net gain (loss) reclassified for the period	$	517		$	87

Revenues

12 Months Ended

May 31, 2020

Revenue from Contract with Customer [Abstract]

Revenues

NOTE 16 — REVENUES

DISAGGREGATION OF REVENUES

The following tables present the Company's revenues disaggregated by reportable operating segment, major product line and by distribution channel:



	YEAR ENDED MAY 31, 2020
(Dollars in millions)	NORTH AMERICA		EUROPE, MIDDLE EAST & AFRICA		GREATER CHINA		ASIA PACIFIC & LATIN AMERICA		GLOBAL BRAND DIVISIONS		TOTAL NIKE BRAND		CONVERSE		CORPORATE			TOTAL NIKE, INC.
Revenues by:
Footwear	$	9,329	$	5,892	$	4,635	$	3,449	$	—	$	23,305	$	1,642	$	—		$	24,947
Apparel	4,639		3,053		1,896		1,365		—		10,953		89		—			11,042
Equipment	516		402		148		214		—		1,280		25		—			1,305
Other	—		—		—		—		30		30		90		(11		)	109
TOTAL REVENUES	$	14,484	$	9,347	$	6,679	$	5,028	$	30	$	35,568	$	1,846	$	(11	)	$	37,403
Revenues by:
Sales to Wholesale Customers	$	9,371	$	6,574	$	3,803	$	3,408	$	—	$	23,156	$	1,154	$	—		$	24,310
Sales through Direct to Consumer	5,113		2,773		2,876		1,620		—		12,382		602		—			12,984
Other	—		—		—		—		30		30		90		(11		)	109
TOTAL REVENUES	$	14,484	$	9,347	$	6,679	$	5,028	$	30	$	35,568	$	1,846	$	(11	)	$	37,403



	YEAR ENDED MAY 31, 2019
(Dollars in millions)	NORTH AMERICA		EUROPE, MIDDLE EAST & AFRICA		GREATER CHINA		ASIA PACIFIC & LATIN AMERICA		GLOBAL BRAND DIVISIONS		TOTAL NIKE BRAND		CONVERSE		CORPORATE			TOTAL NIKE, INC.
Revenues by:
Footwear	$	10,045	$	6,293	$	4,262	$	3,622	$	—	$	24,222	$	1,658	$	—		$	25,880
Apparel	5,260		3,087		1,808		1,395		—		11,550		118		—			11,668
Equipment	597		432		138		237		—		1,404		24		—			1,428
Other	—		—		—		—		42		42		106		(7		)	141
TOTAL REVENUES	$	15,902	$	9,812	$	6,208	$	5,254	$	42	$	37,218	$	1,906	$	(7	)	$	39,117
Revenues by:
Sales to Wholesale Customers	$	10,875	$	7,076	$	3,726	$	3,746	$	—	$	25,423	$	1,247	$	—		$	26,670
Sales through Direct to Consumer	5,027		2,736		2,482		1,508		—		11,753		553		—			12,306
Other	—		—		—		—		42		42		106		(7		)	141
TOTAL REVENUES	$	15,902	$	9,812	$	6,208	$	5,254	$	42	$	37,218	$	1,906	$	(7	)	$	39,117

For the fiscal years ended May 31, 2020 and 2019, Other revenues for Global Brand Divisions and Converse were primarily attributable to licensing businesses. For the fiscal years ended May 31, 2020 and 2019, Other revenues for Corporate primarily consisted of foreign currency hedge gains and losses related to revenues generated by entities within the NIKE Brand geographic operating segments and Converse but managed through the Company's central foreign exchange risk management program.

As of May 31, 2020 and 2019, 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

At May 31, 2020 and May 31, 2019, the Company's sales-related reserve balance, which includes returns, post-invoice sales discounts and miscellaneous claims, was $1,178 million and $1,218 million, respectively, recorded in Accrued liabilities on the Consolidated Balance Sheets. The estimated cost of inventory for expected product returns was $313 million and $410 million as of May 31, 2020 and May 31, 2019, respectively, and was recorded in Prepaid expenses and other current assets on the Consolidated Balance Sheets.

MAJOR CUSTOMERS

No customer accounted for 10% or more of the Company's consolidated net Revenues during the fiscal years ended May 31, 2020, 2019 and 2018.

Operating Segments and Related Information

12 Months Ended

May 31, 2020

Segment Reporting [Abstract]

Operating Segments and Related Information

NOTE 17 — 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, with the results for the Hurley brand, prior to its divestiture, included in North America. Refer to Note 20 — Acquisitions and Divestitures for information regarding the divestiture of the Company's wholly-owned subsidiary, Hurley, and the planned 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 primarily represent NIKE Brand licensing businesses that are not part of a geographic operating segment, and demand creation and operating overhead expense, including product creation and design expenses that are 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. For the fiscal year ended May 31, 2020, Corporate includes the non-recurring impairment charge, recognized as a result of the Company's decision to transition its operations in Brazil, Argentina, Chile and Uruguay to third-party distributors. This charge primarily reflects the anticipated release of associated non-cash cumulative foreign currency translation losses. For more information regarding this charge, refer to Note 20 — Acquisitions and Divestitures.

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)	2020			2019			2018
REVENUES
North America	$	14,484		$	15,902		$	14,855
Europe, Middle East & Africa	9,347			9,812			9,242
Greater China	6,679			6,208			5,134
Asia Pacific & Latin America	5,028			5,254			5,166
Global Brand Divisions	30			42			88
Total NIKE Brand	35,568			37,218			34,485
Converse	1,846			1,906			1,886
Corporate	(11		)	(7		)	26
TOTAL NIKE, INC. REVENUES	$	37,403		$	39,117		$	36,397
EARNINGS BEFORE INTEREST AND TAXES
North America	$	2,899		$	3,925		$	3,600
Europe, Middle East & Africa	1,541			1,995			1,587
Greater China	2,490			2,376			1,807
Asia Pacific & Latin America	1,184			1,323			1,189
Global Brand Divisions	(3,468		)	(3,262		)	(2,658		)
Converse	297			303			310
Corporate	(1,967		)	(1,810		)	(1,456		)
Interest expense (income), net	89			49			54
TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES	$	2,887		$	4,801		$	4,325
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT
North America	$	110		$	117		$	196
Europe, Middle East & Africa	139			233			240
Greater China	28			49			76
Asia Pacific & Latin America	41			47			49
Global Brand Divisions	438			278			286
Total NIKE Brand	756			724			847
Converse	12			18			22
Corporate	356			333			325
TOTAL ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT	$	1,124		$	1,075		$	1,194
DEPRECIATION
North America	$	148		$	149		$	160
Europe, Middle East & Africa	132			111			116
Greater China	44			50			56
Asia Pacific & Latin America	46			53			55
Global Brand Divisions	214			195			217
Total NIKE Brand	584			558			604
Converse	25			31			33
Corporate	112			116			110
TOTAL DEPRECIATION	$	721		$	705		$	747



	AS OF MAY 31,
(Dollars in millions)	2020		2019
ACCOUNTS RECEIVABLE, NET
North America	$	1,020	$	1,718
Europe, Middle East & Africa	712		1,164
Greater China	321		245
Asia Pacific & Latin America⁽¹⁾	425		771
Global Brand Divisions	65		105
Total NIKE Brand	2,543		4,003
Converse	149		243
Corporate	57		26
TOTAL ACCOUNTS RECEIVABLE, NET	$	2,749	$	4,272
INVENTORIES
North America	$	3,077	$	2,328
Europe, Middle East & Africa	2,070		1,390
Greater China	882		693
Asia Pacific & Latin America⁽¹⁾	770		694
Global Brand Divisions	137		126
Total NIKE Brand	6,936		5,231
Converse	341		269
Corporate	90		122
TOTAL INVENTORIES	$	7,367	$	5,622
PROPERTY, PLANT AND EQUIPMENT, NET
North America	$	645	$	814
Europe, Middle East & Africa	885		929
Greater China	214		237
Asia Pacific & Latin America⁽¹⁾	296		326
Global Brand Divisions	830		665
Total NIKE Brand	2,870		2,971
Converse	80		100
Corporate	1,916		1,673
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET	$	4,866	$	4,744


(1)	Excludes assets held-for-sale as of May 31, 2020. See Note 20 — 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 $14,625 million, $16,091 million and $15,314 million for the fiscal years ended May 31, 2020, 2019 and 2018, 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 primarily consists of property, plant and equipment, net, as well as operating lease right-of-use assets, net in conjunction with the adoption of Topic 842 in fiscal 2020, were as follows:



	MAY 31,
(Dollars in millions)	2020⁽¹⁾		2019
United States	$	5,114	$	3,174
Belgium	606		618
China	457		242

(1)

Includes operating lease right-of-use assets, net in conjunction with the adoption of Topic 842. Comparative prior period information has not been adjusted and continues to be reported in accordance with previous accounting guidance in effect for those periods.

Commitments and Contingencies

12 Months Ended

May 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

NOTE 18 — COMMITMENTS AND CONTINGENCIES

As of May 31, 2020 and 2019, the Company had bank guarantees and letters of credit outstanding totaling $239 million and $215 million, respectively, issued primarily for real estate agreements, self-insurance programs and other general business obligations.

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 its business, the Company is involved in various legal proceedings involving contractual and employment relationships, product liability claims, trademark rights and a variety of other matters. While the Company cannot predict the outcome of its pending legal matters with certainty, the Company does not believe any currently identified claim, proceeding or litigation, either individually or in aggregate, will have a material impact on the Company's results of operations, financial position or cash flows.

Leases

12 Months Ended

May 31, 2020

Leases [Abstract]

Leases

NOTE 19 — 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 year ended May 31, 2020, lease expense primarily consisted of operating lease costs of $569 million, along with $337 million primarily related to variable lease costs which includes an immaterial amount of short-term lease costs. As of and for the fiscal year ended May 31, 2020, finance leases were not a material component of the Company's lease portfolio.

Amounts of future undiscounted cash flows related to operating lease payments over the lease term are as follows and are reconciled to the present value of the operating lease liabilities as recorded on the Consolidated Balance Sheets:



(Dollars in millions)	AS OF MAY 31, 2020⁽¹⁾
Fiscal 2021	$	550
Fiscal 2022	514
Fiscal 2023	456
Fiscal 2024	416
Fiscal 2025	374
Thereafter	1,474
Total undiscounted future cash flows related to lease payments	$	3,784
Less: Interest	426
Present value of lease liabilities	$	3,358


(1)	Excludes $67 million of future operating lease payments for lease agreements signed but not yet commenced.

In accordance with Topic 840, rent expense, excluding executory costs, was $829 million and $820 million for the fiscal years ended May 31, 2019 and 2018, respectively. Amounts of minimum future annual commitments under non-cancelable operating and capital leases in accordance with Topic 840 were as follows:



	AS OF MAY 31, 2019
(Dollars in millions)	OPERATING LEASES		CAPITAL LEASES AND OTHER FINANCING OBLIGATIONS⁽¹⁾		TOTAL
Fiscal 2020	$	553	$	32	$	585
Fiscal 2021	513		34		547
Fiscal 2022	441		40		481
Fiscal 2023	386		37		423
Fiscal 2024	345		34		379
Thereafter	1,494		197		1,691
TOTAL	$	3,732	$	374	$	4,106


(1)	Capital leases and other financing obligations include payments related to build-to-suit lease arrangements.

The following table includes the weighted average remaining lease terms, in years, and the weighted average discount rate used to calculate the present value of operating lease liabilities:



	AS OF MAY 31,
	2020
Weighted-average remaining lease term (years)	8.7
Weighted-average discount rate	2.4	%

The following table includes supplemental cash and non-cash information related to operating leases:



	FISCAL YEAR ENDED
(Dollars in millions)	MAY 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	532
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities⁽¹⁾	$	705

(1)

Excludes the amount initially capitalized in conjunction with the adoption of Topic 842.

Acquisitions And Divestitures

12 Months Ended

May 31, 2020

Business Combinations [Abstract]

Acquisitions And Divestitures

NOTE 20 — ACQUISITIONS AND DIVESTITURES

ACQUISITIONS

During fiscal 2020, 2019 and 2018, the Company made multiple acquisitions focused on gaining new capabilities to fuel its Consumer Direct Offense strategy, serving consumers personally at a global scale. The impact of acquisitions, individually and in the aggregate, was not considered material to the Company's Consolidated Financial Statements.

DIVESTITURES

During the third quarter of fiscal 2020, as a result of the Company's decision to transition its wholesale and direct to consumer operating model in certain countries within its APLA operating segment, the Company signed definitive agreements to sell its NIKE Brand businesses in Brazil, Argentina, Chile and Uruguay to third-party distributors. Specifically, NIKE entered into agreements to sell its operations in Argentina, Chile and Uruguay to Grupo Axo and to sell substantially all of its operations in Brazil to Grupo SBF S.A., through its wholly-owned subsidiary. The Company will retain a small operation in Brazil focused on certain sports marketing assets, local manufacturing and Converse. These transactions are expected to close in the first half of fiscal 2021, with Grupo SBF S.A.'s transaction subject to Brazil Antitrust Authority approvals.

As a result of this decision, beginning in the third quarter of fiscal 2020, the related assets and liabilities of these entities were classified as held-for-sale and remain as such on the Consolidated Balance Sheets as of May 31, 2020, which consisted of the following:


•	Assets of $506 million, primarily consisting of $264 million of Inventories and $138 million of Accounts receivable, net which were reclassified to Prepaid expenses and other current assets on the Company's Consolidated Balance Sheets; and


•	Liabilities of $146 million, primarily consisting of $85 million of Accrued liabilities, as well as $49 million of Accounts Payable, which was reclassified to Accrued liabilities on the Company's Consolidated Balance Sheets.

As a result of meeting the criteria for held-for-sale classification, the Company recognized a non-recurring impairment charge of $405 million within Other (income) expense, net on the Consolidated Statements of Income, classified within Corporate, and a corresponding allowance within Accrued Liabilities on the Consolidated Balance Sheets. This charge was primarily due to the anticipated release of non-cash cumulative foreign currency translation losses, which were included as part of the carrying value of the Argentina, Chile and Uruguay disposal groups when measuring for impairment. These losses will be reclassified from Accumulated other comprehensive income (loss) to Net income upon closure of the transaction. For more information see Note 6 — Fair Value Measurements.

On October 29, 2019, the Company signed a definitive agreement to sell the assets and liabilities of its wholly-owned subsidiary brand, Hurley. The transaction closed on December 6, 2019, and the impacts of the divestiture are not considered material to the Company.

Schedule II - Valuation and qualifying accounts

12 Months Ended

May 31, 2020

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, 2018	$	343	$	640	$	5		$	(658	)	$	330
For the fiscal year ended May 31, 2019⁽²⁾	734		1,959		(30		)	(1,820		)	843
For the fiscal year ended May 31, 2020	843		1,941		(31		)	(2,071		)	682


(1)	Amounts included in this column primarily relate to foreign currency translation.

(2)

As a result of the adoption of ASC Topic 606 during the first quarter of fiscal 2019, an asset for the estimated cost of inventory for expected products returns is now recognized separately from the liability for sales returns reserves, which is presented above.

Subsequent Events

12 Months Ended

May 31, 2020

Subsequent Events [Abstract]

Subsequent Events

NOTE 21 — SUBSEQUENT EVENTS

In June 2020, the Company announced a new digitally empowered phase of its Consumer Direct Offense, the Consumer Direct Acceleration. As a result, on July 22, 2020, management announced a series of leadership and operating model changes to streamline and speed up strategic execution for the Company. The changes are expected to lead to a net loss of jobs, resulting in pre-tax, one-time employee termination costs of approximately $200 million to $250 million, which is expected to be incurred primarily during the first half of fiscal 2021, in the form of cash expenditures.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

May 31, 2020

Accounting Policies [Abstract]

Basis of Consolidation

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 RECOGNITION

Beginning in fiscal 2019, the Company adopted Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606). Prior to fiscal 2019, amounts have not been restated and continue to be reported in accordance with the Company's historical accounting policies. The Company's revenue recognition policies under Topic 606 are described in the following paragraphs and references to prior period policies under Accounting Standard Codification Topic 605 — Revenue Recognition (Topic 605), are included below in the event they are substantially different.

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 has passed to the customer, 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.

Transfer of control passes to wholesale customers upon shipment or upon receipt depending on the country of the sale and the agreement with the customer. Control passes to retail store customers at the time of sale and to substantially all digital commerce customers upon shipment. Prior to fiscal 2019, the requirements for recognizing revenue were met upon delivery to the customer. 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 a fulfillment cost 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. Prior to fiscal 2019, the Company's reserve balances were reported net of the

estimated cost of inventory for product returns and recognized within Accounts receivable, net for wholesale transactions and Accrued liabilities for the Company's direct to consumer business, 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 were significantly greater or lower than the reserves established, a reduction or increase to net revenues would be recorded in the period in which such determination was 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 product, television, digital and print advertising and 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 contract elements 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. The Company records these costs in Demand creation expense at the point in time it is obligated to its customers for the costs. This obligation may arise prior to the related advertisement being run.

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, 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, including commercial paper, U.S. Treasury, U.S. Agency, money market funds, time deposits and corporate debt securities with maturities of 90 days or less at the date of purchase.

Short-Term Investments

SHORT-TERM INVESTMENTS

Short-term investments consist of highly liquid investments, including commercial paper, U.S. Treasury, U.S. Agency, time deposits and corporate debt securities, with maturities over 90 days at the date of purchase. Debt securities the Company has the ability and positive intent to hold to maturity are carried at amortized cost. At May 31, 2020 and 2019, the Company did not hold any short-term investments classified as trading or held-to-maturity.

At May 31, 2020 and 2019, 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 other than temporary. 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 90 days 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 RECEIVABLE

Accounts receivable, net consist primarily of amounts receivable from customers. The Company makes ongoing estimates relating to the collectability of its accounts receivable and maintains an allowance for estimated 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, such as the impacts of COVID–19, to determine the amount of the allowance. Accounts receivable with anticipated collection dates greater than 12 months from the balance sheet date and related allowances are considered non-current and recorded in Deferred income taxes and other assets.

Inventory Valuation

INVENTORY VALUATION

Inventories 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 product 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 and 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

Internal Use Software: Expenditures for major software purchases and software developed for internal use are capitalized and amortized over a 2 to 12-year period 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. In addition, 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

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. Events or changes in circumstances that may trigger interim impairment reviews include significant changes in business climate, operating results, planned investments in the reporting unit, planned divestitures or an expectation that the carrying amount may not be recoverable, among other factors.

For purposes of testing goodwill for impairment, the Company allocates goodwill across its reporting units, which are considered the Company's operating segments. The Company may first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit 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 the reporting unit 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 its related reporting units. If the carrying value of a reporting unit exceeds its fair value, the goodwill of that reporting unit is determined to be impaired and the Company will proceed with recording an impairment charge equal to the excess of the carrying value over the related fair value.

Indefinite-lived intangible assets primarily consist of acquired trade names and trademarks. The Company may first perform a qualitative assessment to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. If, after assessing the totality of events and circumstances, the Company determines it is more likely than not that the indefinite-lived intangible asset is not impaired, no quantitative fair value measurement is necessary. If a quantitative fair value measurement calculation is required for these intangible assets, the Company primarily utilizes the relief-from-royalty method. This method assumes trade names and trademarks have value to the extent their owner is relieved of the obligation to pay royalties for the benefits received from them. This method requires the Company to estimate the future revenues for the related brands, the appropriate royalty rate and the weighted average cost of capital. If the carrying value of the indefinite-lived intangible exceeds its fair value, the asset is determined to be impaired and the Company will proceed with recording an impairment charge equal to the excess of the carrying value over the related fair value.

Operating Leases

OPERATING LEASES

Beginning in fiscal 2020, the Company adopted Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). Prior period amounts have not been restated and continue to be reported in accordance with the Company's historical accounting policies. The Company's lease recognition policies under Topic 842 are described in the following paragraphs.

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. 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. 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.

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 established by the Financial Accounting Standards Board (FASB) that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach and cost approach).

The levels of the fair value hierarchy are described below:


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


•	Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets and quoted prices for identical 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) in Total shareholders' equity.

The Company's global subsidiaries have various assets and liabilities, primarily receivables and payables, which are denominated in currencies other than their functional currency. These balance sheet items are subject to re-measurement, 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 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) (a component of Total shareholders' equity), 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 used 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 ten years from the date of grant. 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 restricted stock units is established by the market price on the date of grant.

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.

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 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 extent to which the evolving COVID-19 pandemic impacts the Company's financial statements will depend on a number of factors, including the magnitude and duration of the pandemic. The Company expects it may have a material, adverse impact on future revenue growth as well as overall profitability and may continue to lead to higher than normal inventory levels, revised payment terms with certain wholesale customers, higher sales-related reserves, factory cancellation costs and a volatile effective tax rate driven by changes in the mix of earnings across the Company's jurisdictions.

Recently Adopted and Recently Issued Accounting Standards

RECENTLY ADOPTED ACCOUNTING STANDARDS

In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842), which replaced existing lease accounting guidance. The new standard is intended to provide enhanced transparency and comparability by requiring lessees to record ROU assets and corresponding lease liabilities on the balance sheet. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. The new guidance requires the Company to continue to classify leases as either an operating or finance lease, with classification affecting the pattern of expense recognition in the income statement. In addition, the new standard requires enhanced disclosure surrounding the amount, timing and uncertainty of cash flows arising from leasing agreements.

In July 2018, the FASB issued ASU No. 2018-11, which provided entities with an additional transition method. Under the new transition method, an entity initially applies the new standard at the adoption date, versus at the beginning of the earliest period presented, and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company elected this transition method and adopted Topic 842 using a modified retrospective approach in the first quarter of fiscal 2020 with the cumulative effect of initially applying the new standard recognized in Retained earnings at June 1, 2019. Comparative prior period information has not been adjusted and continues to be reported in accordance with previous lease accounting guidance in Accounting Standards Codification (ASC) Topic 840 - Leases.

Upon adoption, the Company elected the package of transition practical expedients which allowed the Company to carry forward prior conclusions related to: (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases and (iii) initial direct costs for existing leases. Additionally, the Company elected the practical expedient to not separate lease components from nonlease components for all real estate leases within the portfolio. The Company made an accounting policy election to not record leases with an initial term of 12 months or less on the Consolidated Balance Sheets and will recognize related lease payments in the Consolidated Statements of Income on a straight-line basis over the lease term.

In preparation for implementation, the Company executed changes to business processes, including implementing a software solution to assist with the new reporting requirements. The adoption of Topic 842 resulted in a $2.7 billion increase to total assets and total liabilities as of June 1, 2019. Upon adoption, the Company recognized $3.2 billion of total operating lease liabilities and $2.9 billion of operating lease ROU assets, as well as removed $348 million of existing deferred rent liabilities, which was recorded as an offset against the ROU assets. In addition, the Company removed $184 million of existing assets and liabilities related to build-to-suit lease arrangements. Several other asset and liability line items in the Company's Consolidated Balance Sheets were also impacted by immaterial amounts. The adoption of the standard did not have a material impact on the Consolidated Statements of Income or Consolidated Statements of Cash Flows. For more information on the Company's lease arrangements refer to Note 19 — Leases.

In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. The updated guidance requires companies to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Income tax effects of intra-entity transfers of inventory will continue to be deferred until the inventory has been sold to a third party. The Company adopted the standard on June 1, 2018, using a modified retrospective approach, with the cumulative effect of applying the new standard recognized in Retained earnings at the date of adoption. The adoption resulted in reductions to Retained earnings, Deferred income taxes and other assets, and Prepaid expenses and other current assets of $507 million, $422 million and $45 million, respectively, and an increase in Deferred income taxes and other liabilities of $40 million on the Consolidated Balance Sheets.

Hedging Derivatives

The Company elects to record the gross assets and liabilities of its derivative financial instruments 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. Any amounts of non-cash collateral received, such as securities, are not recorded on the Consolidated Balance Sheets pursuant to U.S. GAAP.

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.

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. All interest rate swaps designated as fair value hedges of the related long-term debt meet the shortcut method requirements under U.S. GAAP. Accordingly, changes in the fair values of the interest rate swaps are considered to exactly offset changes in the fair value of the underlying long-term debt.

CASH FLOW HEDGES

All changes in fair value of derivatives designated as cash flow hedges are recorded in Accumulated other comprehensive income (loss) until Net income is affected by the variability of cash flows of the hedged transaction. Effective hedge results are classified in the Consolidated Statements of Income in the same manner as the underlying exposure. Derivative instruments designated as cash flow hedges must be discontinued when it is no longer probable the forecasted hedged transaction will occur in the initially identified time period. The gains and losses associated with discontinued derivative instruments in Accumulated other comprehensive income (loss) will be recognized immediately in Other (income) expense, net, if it is probable the forecasted hedged transaction will not occur by the end of the initially identified time period or within an additional two-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. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Company accounts for the derivative as an undesignated instrument as discussed below.

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 cost exposures, non-functional currency denominated external and intercompany revenues, demand creation expenses, investments in U.S. Dollar denominated available-for-sale debt securities and certain other intercompany transactions.

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

The Company's policy permits the utilization of derivatives to reduce its foreign currency exposures where internal netting or other strategies cannot be effectively employed. Typically, the Company may enter into hedge contracts starting up to 12 to 24 months in advance of the forecasted transaction and may place incremental hedges up to 100% of the exposure by the time the forecasted transaction occurs.

Undesignated Derivative Instruments

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 and/or the embedded derivative contracts. 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 re-measurement gain or loss from the hedged balance sheet position and/or embedded derivative contract.

Embedded Derivatives

EMBEDDED DERIVATIVES

As part of the foreign currency adjustment program described above, an embedded derivative contract is created upon the factory's acceptance of NIKE's purchase order for currencies within the factory currency exposure indices that are neither the U.S. Dollar nor the local or functional currency of the factory. In addition, embedded derivative contracts are created when the Company enters into certain other contractual agreements which have payments that are indexed to currencies that are not the functional currency of either substantial party to the contracts. Embedded derivative contracts are treated as foreign currency forward contracts that are bifurcated from the related contract and recorded at fair value as a derivative asset or liability on the Consolidated Balance Sheets with their corresponding change in fair value recognized in Other (income) expense, net, through the date the foreign currency fluctuations cease to exist.

Property, Plant and Equipment (Tables)

12 Months Ended

May 31, 2020

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant and Equipment

Property, plant and equipment, net included the following:



	MAY 31,
(Dollars in millions)	2020		2019
Land and improvements	$	345	$	329
Buildings	2,442		2,445
Machinery and equipment	2,751		2,726
Internal-use software	1,483		1,609
Leasehold improvements	1,554		1,563
Construction in process	1,086		797
Total property, plant and equipment, gross	9,661		9,469
Less accumulated depreciation	4,795		4,725
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET	$	4,866	$	4,744

Identifiable Intangible Assets and Goodwill (Tables)

12 Months Ended

May 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Indefinite-Lived Intangible Assets

he following table summarizes the Company's Identifiable intangible assets, net balances as of May 31, 2020 and 2019:



	MAY 31,
	2020						2019
(Dollars in millions)	GROSS CARRYING AMOUNT		ACCUMULATED AMORTIZATION		NET CARRYING AMOUNT		GROSS CARRYING AMOUNT		ACCUMULATED AMORTIZATION		NET CARRYING AMOUNT
Indefinite-lived trademarks	$	246	$	—	$	246	$	281	$	—	$	281
Acquired trademarks and other	47		19		28		22		20		2
IDENTIFIABLE INTANGIBLE ASSETS, NET	$	293	$	19	$	274	$	303	$	20	$	283

Schedule of Finite-Lived Intangible Assets

he following table summarizes the Company's Identifiable intangible assets, net balances as of May 31, 2020 and 2019:



	MAY 31,
	2020						2019
(Dollars in millions)	GROSS CARRYING AMOUNT		ACCUMULATED AMORTIZATION		NET CARRYING AMOUNT		GROSS CARRYING AMOUNT		ACCUMULATED AMORTIZATION		NET CARRYING AMOUNT
Indefinite-lived trademarks	$	246	$	—	$	246	$	281	$	—	$	281
Acquired trademarks and other	47		19		28		22		20		2
IDENTIFIABLE INTANGIBLE ASSETS, NET	$	293	$	19	$	274	$	303	$	20	$	283

Accrued Liabilities (Tables)

12 Months Ended

May 31, 2020

Accrued Liabilities, Current [Abstract]

Schedule of Accrued Liabilities

Accrued liabilities included the following:



	MAY 31,
(Dollars in millions)	2020		2019
Compensation and benefits, excluding taxes	$	1,248	$	1,232
Sales-related reserves	1,178		1,218
Allowance for cumulative foreign currency translation losses⁽¹⁾	405		—
Endorsement compensation	393		424
Dividends payable	384		346
Import and logistics costs	273		296
Taxes other than income taxes payable	202		234
Fair value of derivatives	190		52
Liabilities held-for-sale⁽¹⁾	146		—
Advertising and marketing	97		114
Collateral received from counterparties to hedging instruments	—		289
Other⁽²⁾	668		805
TOTAL ACCRUED LIABILITIES	$	5,184	$	5,010


(1)	Refer to Note 20 — Acquisitions and Divestitures for additional information.

(2)

Other consists of various accrued expenses with no individual item accounting for more than 5% of the total Accrued liabilities balance at May 31, 2020 and 2019.

Fair Value Measurements (Tables)

12 Months Ended

May 31, 2020

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present information about the Company's financial assets measured at fair value on a recurring basis as of May 31, 2020 and 2019 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, 2020
(Dollars in millions)	ASSETS AT FAIR VALUE		CASH AND EQUIVALENTS		SHORT-TERM INVESTMENTS
Cash	$	596	$	596	$	—
Level 1:
U.S. Treasury securities	1,204		800		404
Level 2:
Commercial paper and bonds	32		—		32
Money market funds	5,973		5,973		—
Time deposits	981		979		2
U.S. Agency securities	1		—		1
Total Level 2	6,987		6,952		35
TOTAL	$	8,787	$	8,348	$	439



	MAY 31, 2019
(Dollars in millions)	ASSETS AT FAIR VALUE		CASH AND EQUIVALENTS		SHORT-TERM INVESTMENTS
Cash	$	853	$	853	$	—
Level 1:
U.S. Treasury securities	347		200		147
Level 2:
Commercial paper and bonds	34		1		33
Money market funds	1,637		1,637		—
Time deposits	1,791		1,775		16
U.S. Agency securities	1		—		1
Total Level 2	3,463		3,413		50
TOTAL	$	4,663	$	4,466	$	197

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

The following tables present information about the Company's derivative assets and liabilities measured at fair value on a recurring basis as of May 31, 2020 and 2019 and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement.



	MAY 31, 2020
	DERIVATIVE ASSETS						DERIVATIVE LIABILITIES
(Dollars in millions)	ASSETS AT FAIR VALUE		OTHER CURRENT ASSETS		OTHER LONG-TERM ASSETS		LIABILITIES AT FAIR VALUE		ACCRUED LIABILITIES		OTHER LONG-TERM LIABILITIES
Level 2:
Foreign exchange forwards and options⁽¹⁾	$	94	$	91	$	3	$	205	$	188	$	17
Embedded derivatives	1		1		—		2		2		—
TOTAL	$	95	$	92	$	3	$	207	$	190	$	17


(1)	If the foreign exchange derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions would have been reduced by $76 million as of May 31, 2020. As of that date, no amount of cash collateral had been received or posted on the derivative asset and liability balances related to these foreign exchange derivative instruments.



	MAY 31, 2019
	DERIVATIVE ASSETS						DERIVATIVE LIABILITIES
(Dollars in millions)	ASSETS AT FAIR VALUE		OTHER CURRENT ASSETS		OTHER LONG-TERM ASSETS		LIABILITIES AT FAIR VALUE		ACCRUED LIABILITIES		OTHER LONG-TERM LIABILITIES
Level 2:
Foreign exchange forwards and options⁽¹⁾	$	611	$	611	$	—	$	51	$	51	$	—
Embedded derivatives	11		5		6		3		1		2
TOTAL	$	622	$	616	$	6	$	54	$	52	$	2

(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 $50 million as of May 31, 2019. As of that date, the Company had received $289 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, 2019.

The following tables present the fair values of derivative instruments included within the Consolidated Balance Sheets as of May 31, 2020 and 2019:



	DERIVATIVE ASSETS
	BALANCE SHEET LOCATION	MAY 31,
(Dollars in millions)	BALANCE SHEET LOCATION	2020		2019
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	$	43	$	509
Foreign exchange forwards and options	Deferred income taxes and other assets	1		—
Total derivatives formally designated as hedging instruments		44		509
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	48		102
Embedded derivatives	Prepaid expenses and other current assets	1		5
Foreign exchange forwards and options	Deferred income taxes and other assets	2		—
Embedded derivatives	Deferred income taxes and other assets	—		6
Total derivatives not designated as hedging instruments		51		113
TOTAL DERIVATIVE ASSETS		$	95	$	622



	DERIVATIVE LIABILITIES
	BALANCE SHEET LOCATION	MAY 31,
(Dollars in millions)	BALANCE SHEET LOCATION	2020		2019
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options	Accrued liabilities	$	173	$	5
Foreign exchange forwards and options	Deferred income taxes and other liabilities	17		—
Total derivatives formally designated as hedging instruments		190		5
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	Accrued liabilities	15		46
Embedded derivatives	Accrued liabilities	2		1
Embedded derivatives	Deferred income taxes and other liabilities	—		2
Total derivatives not designated as hedging instruments		17		49
TOTAL DERIVATIVE LIABILITIES		$	207	$	54

Short-Term Borrowings and Credit Lines (Tables)

12 Months Ended

May 31, 2020

Debt Disclosure [Abstract]

Schedule of Short-term Debt

Notes payable as of May 31, 2020 and 2019 are summarized below:



	MAY 31,
	2020				2019
(Dollars in millions)	BORROWINGS		INTEREST RATE		BORROWINGS		INTEREST RATE
Notes payable:
Commercial paper⁽¹⁾	$	248	1.65	%	$	—	0.00	%
U.S. operations	—		0.00	%	2		0.00	%	⁽²⁾
Non-U.S. operations	—		0.00	%	7		26.00	%	⁽²⁾
TOTAL NOTES PAYABLE	$	248			$	9


(1)	Commercial paper borrowings with original maturities greater than three months are included in Proceeds from borrowings, net of debt issuance costs on the Consolidated Statements of Cash Flows.

(2)

Weighted average interest rate includes non-interest bearing overdrafts.

Long-Term Debt (Tables)

12 Months Ended

May 31, 2020

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 and Yen in millions)	ORIGINAL PRINCIPAL		INTEREST RATE		INTEREST PAYMENTS	2020		2019
Corporate Term Debt:⁽¹⁾⁽²⁾
May 1, 2023	$	500	2.25	%	Semi-Annually	$	499	$	498
March 27, 2025	1,000		2.40	%	Semi-Annually	994		—
November 1, 2026	1,000		2.38	%	Semi-Annually	995		994
March 27, 2027	1,000		2.75	%	Semi-Annually	994		—
March 27, 2030	1,500		2.85	%	Semi-Annually	1,489		—
March 27, 2040	1,000		3.25	%	Semi-Annually	985		—
May 1, 2043	500		3.63	%	Semi-Annually	495		495
November 1, 2045	1,000		3.88	%	Semi-Annually	984		983
November 1, 2046	500		3.38	%	Semi-Annually	491		491
March 27, 2050	1,500		3.38	%	Semi-Annually	1,480		—
Japanese Yen Notes:⁽³⁾
August 20, 2001 through November 20, 2020	¥	9,000	2.60	%	Quarterly	$	2	$	6
August 20, 2001 through November 20, 2020	4,000		2.00	%	Quarterly	1		3
Total						9,409		3,470
Less current maturities						3		6
TOTAL LONG-TERM DEBT						$	9,406	$	3,464


(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.

(3)

NIKE Logistics YK assumed a total of ¥13.0 billion in loans as part of its agreement to purchase a distribution center in Japan, which serves as collateral for the loans. These loans mature in equal quarterly installments during the period August 20, 2001 through November 20, 2020.

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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+ Details

Income Taxes (Tables)

12 Months Ended

May 31, 2020

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)	2020			2019		2018
Income before income taxes:
United States	$	2,954		$	593	$	744
Foreign	(67		)	4,208		3,581
TOTAL INCOME BEFORE INCOME TAXES	$	2,887		$	4,801	$	4,325

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes is as follows:



	YEAR ENDED MAY 31,
(Dollars in millions)	2020			2019			2018
Current:
United States
Federal	$	(109	)	$	74		$	1,167
State	81			56			45
Foreign	756			608			533
Total Current	728			738			1,745
Deferred:
United States
Federal	(231		)	(33		)	595
State	(47		)	(9		)	25
Foreign	(102		)	76			27
Total Deferred	(380		)	34			647
TOTAL INCOME TAX EXPENSE	$	348		$	772		$	2,392

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,
	2020		2019		2018
Federal income tax rate	21.0	%	21.0	%	29.2	%
State taxes, net of federal benefit	0.8	%	1.0	%	0.8	%
Foreign earnings	5.9	%	-1.1	%	-19.2	%
Foreign-derived intangible income benefit related to the Tax Act	-8.1	%	—	%	—	%
Transition tax related to the Tax Act	—	%	—	%	43.3	%
Remeasurement of deferred tax assets and liabilities related to the Tax Act	—	%	—	%	3.7	%
Excess tax benefits from share-based compensation	-7.2	%	-3.6	%	-5.3	%
Income tax audits and contingency reserves	-1.4	%	1.3	%	2.9	%
U.S. research and development tax credit	-1.8	%	-1.0	%	-0.6	%
Other, net	2.9	%	-1.5	%	0.5	%
EFFECTIVE INCOME TAX RATE	12.1	%	16.1	%	55.3	%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities comprise the following as of:



	MAY 31,
(Dollars in millions)	2020			2019
Deferred tax assets:
Inventories	$	84		$	66
Sales return reserves	115			128
Deferred compensation	295			271
Stock-based compensation	168			156
Reserves and accrued liabilities	120			101
Operating lease liabilities	491			—
Capitalized research and development expenditures	189			—
Net operating loss carry-forwards	21			81
Other	127			125
Total deferred tax assets	1,610			928
Valuation allowance	(26		)	(88		)
Total deferred tax assets after valuation allowance	1,584			840
Deferred tax liabilities:
Foreign withholding tax on undistributed earnings of foreign subsidiaries	(165		)	(235		)
Property, plant and equipment	(232		)	(188		)
Right-of-use assets	(423		)	—
Other	(32		)	(41		)
Total deferred tax liabilities	(852		)	(464		)
NET DEFERRED TAX ASSET	$	732		$	376

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)	2020			2019			2018
Unrecognized tax benefits, beginning of the period	$	808		$	698		$	461
Gross increases related to prior period tax positions	181			85			19
Gross decreases related to prior period tax positions	(171		)	(32		)	(12		)
Gross increases related to current period tax positions	50			81			249
Settlements	(58		)	—			—
Lapse of statute of limitations	(28		)	(35		)	(20		)
Changes due to currency translation	(11		)	11			1
UNRECOGNIZED TAX BENEFITS, END OF THE PERIOD	$	771		$	808		$	698

Summary of Operating Loss Carryforwards

The Company has available domestic and foreign loss carry-forwards of $83 million at May 31, 2020. If not utilized, such losses will expire as follows:



	YEAR ENDING MAY 31,
(Dollars in millions)	2021		2022		2023		2024		2025-2040		INDEFINITE		TOTAL
Net operating losses	$	—	$	3	$	2	$	2	$	59	$	17	$	83

Common Stock and Stock-Based Compensation (Tables)

12 Months Ended

May 31, 2020

Share-based Payment Arrangement, Noncash Expense [Abstract]

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award

The following table summarizes the Company's total stock-based compensation expense recognized in Cost of sales or Operating overhead expense, as applicable:



	YEAR ENDED MAY 31,
(Dollars in millions)	2020		2019		2018
Stock options⁽¹⁾	$	237	$	207	$	149
ESPPs	53		40		34
Restricted stock	139		78		35
TOTAL STOCK-BASED COMPENSATION EXPENSE	$	429	$	325	$	218

(1)

Expense for stock options includes the expense associated with stock appreciation rights. Accelerated stock option expense is recorded for employees meeting certain retirement eligibility requirements. Accelerated stock option expense was $53 million, $41 million and $18 million for the fiscal years ended May 31, 2020, 2019 and 2018, respectively.

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,
	2020		2019		2018
Dividend yield	1.0	%	1.0	%	1.2	%
Expected volatility	23.0	%	26.6	%	16.4	%
Weighted average expected life (in years)	6.0		6.0		6.0
Risk-free interest rate	1.5	%	2.8	%	2.0	%

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, 2019	91.3		$	50.59
Exercised	(20.1	)	35.26
Forfeited	(2.2	)	75.74
Granted	19.1		85.29
Options outstanding as of May 31, 2020	88.1		$	60.98

(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 unit activity under the plan discussed above:



	SHARES		WEIGHTED AVERAGE GRANT DATE FAIR VALUE
	(In millions)
Nonvested as of May 31, 2019	4.4		$	70.93
Vested	(1.1	)	72.64
Forfeited	(0.3	)	79.62
Granted	3.8		88.26
Nonvested as of May 31, 2020	6.8		$	79.84

Earnings Per Share (Tables)

12 Months Ended

May 31, 2020

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following is a reconciliation from basic earnings per common share to diluted earnings per common share. The computations of diluted earnings per common share excluded options, including shares under ESPPs, and restricted stock to purchase an additional 30.6 million, 17.5 million and 42.9 million shares of common stock outstanding for the fiscal years ended May 31, 2020, 2019 and 2018, respectively, because the options and restricted stock were anti-dilutive.



	YEAR ENDED MAY 31,
(In millions, except per share data)	2020		2019		2018
Net income available to common stockholders	$	2,539	$	4,029	$	1,933
Determination of shares:
Weighted average common shares outstanding	1,558.8		1,579.7		1,623.8
Assumed conversion of dilutive stock options and awards	32.8		38.7		35.3
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING	1,591.6		1,618.4		1,659.1
Earnings per common share:
Basic	$	1.63	$	2.55	$	1.19
Diluted	$	1.60	$	2.49	$	1.17

Risk Management and Derivatives (Tables)

12 Months Ended

May 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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

The following tables present information about the Company's derivative assets and liabilities measured at fair value on a recurring basis as of May 31, 2020 and 2019 and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement.



	MAY 31, 2020
	DERIVATIVE ASSETS						DERIVATIVE LIABILITIES
(Dollars in millions)	ASSETS AT FAIR VALUE		OTHER CURRENT ASSETS		OTHER LONG-TERM ASSETS		LIABILITIES AT FAIR VALUE		ACCRUED LIABILITIES		OTHER LONG-TERM LIABILITIES
Level 2:
Foreign exchange forwards and options⁽¹⁾	$	94	$	91	$	3	$	205	$	188	$	17
Embedded derivatives	1		1		—		2		2		—
TOTAL	$	95	$	92	$	3	$	207	$	190	$	17


(1)	If the foreign exchange derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions would have been reduced by $76 million as of May 31, 2020. As of that date, no amount of cash collateral had been received or posted on the derivative asset and liability balances related to these foreign exchange derivative instruments.



	MAY 31, 2019
	DERIVATIVE ASSETS						DERIVATIVE LIABILITIES
(Dollars in millions)	ASSETS AT FAIR VALUE		OTHER CURRENT ASSETS		OTHER LONG-TERM ASSETS		LIABILITIES AT FAIR VALUE		ACCRUED LIABILITIES		OTHER LONG-TERM LIABILITIES
Level 2:
Foreign exchange forwards and options⁽¹⁾	$	611	$	611	$	—	$	51	$	51	$	—
Embedded derivatives	11		5		6		3		1		2
TOTAL	$	622	$	616	$	6	$	54	$	52	$	2

(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 $50 million as of May 31, 2019. As of that date, the Company had received $289 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, 2019.

The following tables present the fair values of derivative instruments included within the Consolidated Balance Sheets as of May 31, 2020 and 2019:



	DERIVATIVE ASSETS
	BALANCE SHEET LOCATION	MAY 31,
(Dollars in millions)	BALANCE SHEET LOCATION	2020		2019
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	$	43	$	509
Foreign exchange forwards and options	Deferred income taxes and other assets	1		—
Total derivatives formally designated as hedging instruments		44		509
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	48		102
Embedded derivatives	Prepaid expenses and other current assets	1		5
Foreign exchange forwards and options	Deferred income taxes and other assets	2		—
Embedded derivatives	Deferred income taxes and other assets	—		6
Total derivatives not designated as hedging instruments		51		113
TOTAL DERIVATIVE ASSETS		$	95	$	622



	DERIVATIVE LIABILITIES
	BALANCE SHEET LOCATION	MAY 31,
(Dollars in millions)	BALANCE SHEET LOCATION	2020		2019
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options	Accrued liabilities	$	173	$	5
Foreign exchange forwards and options	Deferred income taxes and other liabilities	17		—
Total derivatives formally designated as hedging instruments		190		5
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	Accrued liabilities	15		46
Embedded derivatives	Accrued liabilities	2		1
Embedded derivatives	Deferred income taxes and other liabilities	—		2
Total derivatives not designated as hedging instruments		17		49
TOTAL DERIVATIVE LIABILITIES		$	207	$	54

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, 2020, 2019 and 2018:



	YEAR ENDED MAY 31,
	2020					2019						2018
(Dollars in millions)	TOTAL		AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY			TOTAL			AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY			TOTAL		AMOUNT OF GAIN (LOSS) ON CASH FLOW HEDGE ACTIVITY
Revenues	$	37,403	$	(17	)	$	39,117		$	(5	)	$	36,397	$	34
Cost of sales	21,162		364			21,643			53			20,441		(90		)
Demand creation expense	3,592		(2		)	3,753			—			3,577		1
Other (income) expense, net	139		181			(78		)	35			66		(69		)
Interest expense (income), net	89		(7		)	49			(7		)	54		(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, 2020, 2019 and 2018:



(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,
	2020		2019		2018				2020			2019			2018
Derivatives designated as cash flow hedges:
Foreign exchange forwards and options	$	28	$	14	$	19		Revenues	$	(17	)	$	(5	)	$	34
Foreign exchange forwards and options	283		405		(50		)	Cost of sales	364			53			(90		)
Foreign exchange forwards and options	1		2		1			Demand creation expense	(2		)	—			1
Foreign exchange forwards and options	90		156		(19		)	Other (income) expense, net	181			35			(69		)
Interest rate swaps⁽²⁾	—		—		—			Interest expense (income), net	(7		)	(7		)	(7		)
Total designated cash flow hedges	$	402	$	577	$	(49	)		$	519		$	76		$	(131	)


(1)	For the fiscal years ended May 31, 2020, 2019 and 2018, 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)	2020			2019		2018
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	$	76		$	166	$	(57	)	Other (income) expense, net
Embedded derivatives	(1		)	7		(4		)	Other (income) expense, net

Accumulated Other Comprehensive Income (Tables)

12 Months Ended

May 31, 2020

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income

The changes in Accumulated other comprehensive income (loss), net of tax, were as follows:



(Dollars in millions)	FOREIGN CURRENCY TRANSLATION ADJUSTMENT⁽¹⁾			CASH FLOW HEDGES			NET INVESTMENT HEDGES⁽¹⁾		OTHER			TOTAL
Balance at May 31, 2019	$	(346	)	$	520		$	115	$	(58	)	$	231
Other comprehensive income (loss):
Other comprehensive gains (losses) before reclassifications⁽²⁾	(149		)	387			—		(8		)	230
Reclassifications to net income of previously deferred (gains) losses⁽³⁾	1			(517		)	—		(1		)	(517		)
Total other comprehensive income (loss)	(148		)	(130		)	—		(9		)	(287		)
Balance at May 31, 2020	$	(494	)	$	390		$	115	$	(67	)	$	(56	)


(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, $(15) million, $0 million, $1 million and $(14) million, respectively.


(3)	Net of tax (benefit) expense of $0 million, $2 million, $0 million, $0 million and $2 million, respectively.



(Dollars in millions)	FOREIGN CURRENCY TRANSLATION ADJUSTMENT⁽¹⁾			CASH FLOW HEDGES			NET INVESTMENT HEDGES⁽¹⁾		OTHER			TOTAL
Balance at May 31, 2018	$	(173	)	$	17		$	115	$	(51	)	$	(92	)
Other comprehensive income (loss):
Other comprehensive gains (losses) before reclassifications⁽²⁾	(173		)	573			—		10			410
Reclassifications to net income of previously deferred (gains) losses⁽³⁾	—			(70		)	—		(17		)	(87		)
Total other comprehensive income (loss)	(173		)	503			—		(7		)	323
Balance at May 31, 2019	$	(346	)	$	520		$	115	$	(58	)	$	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, $(4) million, $0 million, $1 million and $(3) million, respectively.


(3)	Net of tax (benefit) expense of $0 million, $6 million, $0 million, $0 million and $6 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)	2020			2019
Gains (losses) on foreign currency translation adjustment	$	(1	)	$	—		Other (income) expense, net
Total before tax	(1		)	—
Tax (expense) benefit	—			—
Gain (loss) net of tax	(1		)	—
Gains (losses) on cash flow hedges:
Foreign exchange forwards and options	$	(17	)	(5		)	Revenues
Foreign exchange forwards and options	364			53			Cost of sales
Foreign exchange forwards and options	(2		)	—			Demand creation expense
Foreign exchange forwards and options	181			35			Other (income) expense, net
Interest rate swaps	(7		)	(7		)	Interest expense (income), net
Total before tax	519			76
Tax (expense) benefit	(2		)	(6		)
Gain (loss) net of tax	517			70
Gains (losses) on other	1			17			Other (income) expense, net
Total before tax	1			17
Tax (expense) benefit	—			—
Gain (loss) net of tax	1			17
Total net gain (loss) reclassified for the period	$	517		$	87

Revenues (Tables)

12 Months Ended

May 31, 2020

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following tables present the Company's revenues disaggregated by reportable operating segment, major product line and by distribution channel:



	YEAR ENDED MAY 31, 2020
(Dollars in millions)	NORTH AMERICA		EUROPE, MIDDLE EAST & AFRICA		GREATER CHINA		ASIA PACIFIC & LATIN AMERICA		GLOBAL BRAND DIVISIONS		TOTAL NIKE BRAND		CONVERSE		CORPORATE			TOTAL NIKE, INC.
Revenues by:
Footwear	$	9,329	$	5,892	$	4,635	$	3,449	$	—	$	23,305	$	1,642	$	—		$	24,947
Apparel	4,639		3,053		1,896		1,365		—		10,953		89		—			11,042
Equipment	516		402		148		214		—		1,280		25		—			1,305
Other	—		—		—		—		30		30		90		(11		)	109
TOTAL REVENUES	$	14,484	$	9,347	$	6,679	$	5,028	$	30	$	35,568	$	1,846	$	(11	)	$	37,403
Revenues by:
Sales to Wholesale Customers	$	9,371	$	6,574	$	3,803	$	3,408	$	—	$	23,156	$	1,154	$	—		$	24,310
Sales through Direct to Consumer	5,113		2,773		2,876		1,620		—		12,382		602		—			12,984
Other	—		—		—		—		30		30		90		(11		)	109
TOTAL REVENUES	$	14,484	$	9,347	$	6,679	$	5,028	$	30	$	35,568	$	1,846	$	(11	)	$	37,403



	YEAR ENDED MAY 31, 2019
(Dollars in millions)	NORTH AMERICA		EUROPE, MIDDLE EAST & AFRICA		GREATER CHINA		ASIA PACIFIC & LATIN AMERICA		GLOBAL BRAND DIVISIONS		TOTAL NIKE BRAND		CONVERSE		CORPORATE			TOTAL NIKE, INC.
Revenues by:
Footwear	$	10,045	$	6,293	$	4,262	$	3,622	$	—	$	24,222	$	1,658	$	—		$	25,880
Apparel	5,260		3,087		1,808		1,395		—		11,550		118		—			11,668
Equipment	597		432		138		237		—		1,404		24		—			1,428
Other	—		—		—		—		42		42		106		(7		)	141
TOTAL REVENUES	$	15,902	$	9,812	$	6,208	$	5,254	$	42	$	37,218	$	1,906	$	(7	)	$	39,117
Revenues by:
Sales to Wholesale Customers	$	10,875	$	7,076	$	3,726	$	3,746	$	—	$	25,423	$	1,247	$	—		$	26,670
Sales through Direct to Consumer	5,027		2,736		2,482		1,508		—		11,753		553		—			12,306
Other	—		—		—		—		42		42		106		(7		)	141
TOTAL REVENUES	$	15,902	$	9,812	$	6,208	$	5,254	$	42	$	37,218	$	1,906	$	(7	)	$	39,117

Operating Segments and Related Information (Tables)

12 Months Ended

May 31, 2020

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

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



	YEAR ENDED MAY 31,
(Dollars in millions)	2020			2019			2018
REVENUES
North America	$	14,484		$	15,902		$	14,855
Europe, Middle East & Africa	9,347			9,812			9,242
Greater China	6,679			6,208			5,134
Asia Pacific & Latin America	5,028			5,254			5,166
Global Brand Divisions	30			42			88
Total NIKE Brand	35,568			37,218			34,485
Converse	1,846			1,906			1,886
Corporate	(11		)	(7		)	26
TOTAL NIKE, INC. REVENUES	$	37,403		$	39,117		$	36,397
EARNINGS BEFORE INTEREST AND TAXES
North America	$	2,899		$	3,925		$	3,600
Europe, Middle East & Africa	1,541			1,995			1,587
Greater China	2,490			2,376			1,807
Asia Pacific & Latin America	1,184			1,323			1,189
Global Brand Divisions	(3,468		)	(3,262		)	(2,658		)
Converse	297			303			310
Corporate	(1,967		)	(1,810		)	(1,456		)
Interest expense (income), net	89			49			54
TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES	$	2,887		$	4,801		$	4,325
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT
North America	$	110		$	117		$	196
Europe, Middle East & Africa	139			233			240
Greater China	28			49			76
Asia Pacific & Latin America	41			47			49
Global Brand Divisions	438			278			286
Total NIKE Brand	756			724			847
Converse	12			18			22
Corporate	356			333			325
TOTAL ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT	$	1,124		$	1,075		$	1,194
DEPRECIATION
North America	$	148		$	149		$	160
Europe, Middle East & Africa	132			111			116
Greater China	44			50			56
Asia Pacific & Latin America	46			53			55
Global Brand Divisions	214			195			217
Total NIKE Brand	584			558			604
Converse	25			31			33
Corporate	112			116			110
TOTAL DEPRECIATION	$	721		$	705		$	747

Reconciliation of Assets from Segment to Consolidated



	AS OF MAY 31,
(Dollars in millions)	2020		2019
ACCOUNTS RECEIVABLE, NET
North America	$	1,020	$	1,718
Europe, Middle East & Africa	712		1,164
Greater China	321		245
Asia Pacific & Latin America⁽¹⁾	425		771
Global Brand Divisions	65		105
Total NIKE Brand	2,543		4,003
Converse	149		243
Corporate	57		26
TOTAL ACCOUNTS RECEIVABLE, NET	$	2,749	$	4,272
INVENTORIES
North America	$	3,077	$	2,328
Europe, Middle East & Africa	2,070		1,390
Greater China	882		693
Asia Pacific & Latin America⁽¹⁾	770		694
Global Brand Divisions	137		126
Total NIKE Brand	6,936		5,231
Converse	341		269
Corporate	90		122
TOTAL INVENTORIES	$	7,367	$	5,622
PROPERTY, PLANT AND EQUIPMENT, NET
North America	$	645	$	814
Europe, Middle East & Africa	885		929
Greater China	214		237
Asia Pacific & Latin America⁽¹⁾	296		326
Global Brand Divisions	830		665
Total NIKE Brand	2,870		2,971
Converse	80		100
Corporate	1,916		1,673
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET	$	4,866	$	4,744

(1)

Excludes assets held-for-sale as of May 31, 2020. See Note 20 — Acquisitions and Divestitures for additional information.

Long-lived Assets by Geographic Areas

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 primarily consists of property, plant and equipment, net, as well as operating lease right-of-use assets, net in conjunction with the adoption of Topic 842 in fiscal 2020, were as follows:



	MAY 31,
(Dollars in millions)	2020⁽¹⁾		2019
United States	$	5,114	$	3,174
Belgium	606		618
China	457		242

(1)

Includes operating lease right-of-use assets, net in conjunction with the adoption of Topic 842. Comparative prior period information has not been adjusted and continues to be reported in accordance with previous accounting guidance in effect for those periods.

Leases (Tables)

12 Months Ended

May 31, 2020

Leases [Abstract]

Lessee, Operating Lease, Liability, Maturity

Amounts of future undiscounted cash flows related to operating lease payments over the lease term are as follows and are reconciled to the present value of the operating lease liabilities as recorded on the Consolidated Balance Sheets:



(Dollars in millions)	AS OF MAY 31, 2020⁽¹⁾
Fiscal 2021	$	550
Fiscal 2022	514
Fiscal 2023	456
Fiscal 2024	416
Fiscal 2025	374
Thereafter	1,474
Total undiscounted future cash flows related to lease payments	$	3,784
Less: Interest	426
Present value of lease liabilities	$	3,358

(1)

Excludes $67 million of future operating lease payments for lease agreements signed but not yet commenced.

Schedule of Future Minimum Lease Payments for Capital Leases

Amounts of minimum future annual commitments under non-cancelable operating and capital leases in accordance with Topic 840 were as follows:



	AS OF MAY 31, 2019
(Dollars in millions)	OPERATING LEASES		CAPITAL LEASES AND OTHER FINANCING OBLIGATIONS⁽¹⁾		TOTAL
Fiscal 2020	$	553	$	32	$	585
Fiscal 2021	513		34		547
Fiscal 2022	441		40		481
Fiscal 2023	386		37		423
Fiscal 2024	345		34		379
Thereafter	1,494		197		1,691
TOTAL	$	3,732	$	374	$	4,106

(1)

Capital leases and other financing obligations include payments related to build-to-suit lease arrangements.

Schedule of Future Minimum Lease Payments for Operating Leases

Amounts of minimum future annual commitments under non-cancelable operating and capital leases in accordance with Topic 840 were as follows:



	AS OF MAY 31, 2019
(Dollars in millions)	OPERATING LEASES		CAPITAL LEASES AND OTHER FINANCING OBLIGATIONS⁽¹⁾		TOTAL
Fiscal 2020	$	553	$	32	$	585
Fiscal 2021	513		34		547
Fiscal 2022	441		40		481
Fiscal 2023	386		37		423
Fiscal 2024	345		34		379
Thereafter	1,494		197		1,691
TOTAL	$	3,732	$	374	$	4,106

(1)

Capital leases and other financing obligations include payments related to build-to-suit lease arrangements.

Lease Term And Discount Rate

The following table includes the weighted average remaining lease terms, in years, and the weighted average discount rate used to calculate the present value of operating lease liabilities:



	AS OF MAY 31,
	2020
Weighted-average remaining lease term (years)	8.7
Weighted-average discount rate	2.4	%

Lease, Cost

The following table includes supplemental cash and non-cash information related to operating leases:



	FISCAL YEAR ENDED
(Dollars in millions)	MAY 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	532
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities⁽¹⁾	$	705

(1)

Excludes the amount initially capitalized in conjunction with the adoption of Topic 842.

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Significant Accounting Policies [Line Items]
Total advertising and promotion expenses	$ 3,592	$ 3,753	$ 3,577
Prepaid advertising and promotion expenses	686	773
Allowance for uncollectible accounts receivable	$ 214	30
Minimum \| Building
Significant Accounting Policies [Line Items]
Property, plant and equipment, minimum useful life (in years)	2 years
Minimum \| Leasehold improvements
Significant Accounting Policies [Line Items]
Property, plant and equipment, minimum useful life (in years)	2 years
Minimum \| Machinery and Equipment
Significant Accounting Policies [Line Items]
Property, plant and equipment, minimum useful life (in years)	2 years
Minimum \| Software and Software Development Costs
Significant Accounting Policies [Line Items]
Property, plant and equipment, minimum useful life (in years)	2 years
Minimum \| Land Improvements
Significant Accounting Policies [Line Items]
Property, plant and equipment, minimum useful life (in years)	2 years
Maximum \| Building
Significant Accounting Policies [Line Items]
Property, plant and equipment, minimum useful life (in years)	40 years
Maximum \| Leasehold improvements
Significant Accounting Policies [Line Items]
Property, plant and equipment, minimum useful life (in years)	40 years
Maximum \| Machinery and Equipment
Significant Accounting Policies [Line Items]
Property, plant and equipment, minimum useful life (in years)	15 years
Maximum \| Software and Software Development Costs
Significant Accounting Policies [Line Items]
Property, plant and equipment, minimum useful life (in years)	12 years
Maximum \| Land Improvements
Significant Accounting Policies [Line Items]
Property, plant and equipment, minimum useful life (in years)	40 years
Prepaid expenses and other current assets
Significant Accounting Policies [Line Items]
Prepaid advertising and promotion expenses	$ 326	333
Deferred income taxes and other assets
Significant Accounting Policies [Line Items]
Prepaid advertising and promotion expenses	$ 360	$ 440

Summary of Significant Accounting Policies - New Accounting Pronouncements (Details) - USD ($) $ in Millions	May 31, 2020	Jun. 01, 2019	May 31, 2019	Jun. 01, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Assets	$ 31,342		$ 23,717
Present value of lease liabilities	3,358
Operating lease right-of-use assets, net	3,097		0
Retained earnings	191		(1,643)
Deferred income taxes and other assets	(2,326)		(2,011)
Prepaid expenses and other current assets	(1,653)		(1,968)
Deferred income taxes and other liabilities	$ 2,684		$ 3,347
Adoption of ASC Topic 842 (Note 1)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Assets		$ 2,700
Liabilities		2,700
Present value of lease liabilities		3,200
Operating lease right-of-use assets, net		2,900
Decrease in deferred rent liabilities		348
Build-to-suit lease asset removed		184
Build-to-suit lease liability removed		$ 184
Adoption of ASU 2016-16 (Note 1)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings				$ 507
Deferred income taxes and other assets				422
Prepaid expenses and other current assets				45
Deferred income taxes and other liabilities				$ 40

Inventories - Additional Information (Detail) - USD ($) $ in Millions	May 31, 2020	May 31, 2019
Inventory Disclosure [Abstract]
Inventory balances, were substantially all finished goods	$ 7,367	$ 5,622

Property Plant and Equipment (Detail) - USD ($) $ in Millions	May 31, 2020	May 31, 2019
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	$ 9,661	$ 9,469
Less accumulated depreciation	4,795	4,725
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET	4,866	4,744
Land and improvements
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	345	329
Buildings
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	2,442	2,445
Machinery and equipment
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	2,751	2,726
Internal-use software
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	1,483	1,609
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	1,554	1,563
Construction in process
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	$ 1,086	$ 797

Identifiable Intangible Assets and Goodwill (Detail) - USD ($)	May 31, 2020	May 31, 2019
Goodwill and Intangible Assets Disclosure [Line Items]
Indefinite-lived trademarks	$ 246,000,000	$ 281,000,000
ACCUMULATED AMORTIZATION	19,000,000	20,000,000
Intangible assets, gross carrying amount	293,000,000	303,000,000
Intangible assets, net carrying amount	274,000,000	283,000,000
Goodwill	223,000,000	154,000,000
Goodwill, impaired, accumulated impairment loss	0	0
Acquired trademarks and other
Goodwill and Intangible Assets Disclosure [Line Items]
GROSS CARRYING AMOUNT	47,000,000	22,000,000
ACCUMULATED AMORTIZATION	19,000,000	20,000,000
NET CARRYING AMOUNT	$ 28,000,000	$ 2,000,000

Accrued Liabilities (Detail) - USD ($) $ in Millions	May 31, 2020	May 31, 2019
Accrued Liabilities, Current [Abstract]
Compensation and benefits, excluding taxes	$ 1,248	$ 1,232
Sales-related reserves	1,178	1,218
Allowance for cumulative foreign currency translation losses	405	0
Endorsement compensation	393	424
Dividends payable	384	346
Import and logistics costs	273	296
Taxes other than income taxes payable	202	234
Advertising and marketing	97	114
Fair value of derivatives	190	52
Liabilities held-for-sale	146	0
Collateral received from counterparties to hedging instruments	0	289
Other	668	805
TOTAL ACCRUED LIABILITIES	$ 5,184	$ 5,010

Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Millions	May 31, 2020	May 31, 2019
Assets, Fair Value Disclosure [Abstract]
Cash	$ 596	$ 853
ASSETS AT FAIR VALUE	8,787	4,663
CASH AND EQUIVALENTS	8,348	4,466
SHORT-TERM INVESTMENTS	439	197
Fair Value, Inputs, Level 1 \| U.S. Treasury securities
Assets, Fair Value Disclosure [Abstract]
ASSETS AT FAIR VALUE	1,204	347
CASH AND EQUIVALENTS	800	200
SHORT-TERM INVESTMENTS	404	147
Fair Value, Inputs, Level 2
Assets, Fair Value Disclosure [Abstract]
ASSETS AT FAIR VALUE	6,987	3,463
CASH AND EQUIVALENTS	6,952	3,413
SHORT-TERM INVESTMENTS	35	50
Fair Value, Inputs, Level 2 \| Commercial paper and bonds
Assets, Fair Value Disclosure [Abstract]
ASSETS AT FAIR VALUE	32	34
CASH AND EQUIVALENTS	0	1
SHORT-TERM INVESTMENTS	32	33
Fair Value, Inputs, Level 2 \| Money market funds
Assets, Fair Value Disclosure [Abstract]
ASSETS AT FAIR VALUE	5,973	1,637
CASH AND EQUIVALENTS	5,973	1,637
SHORT-TERM INVESTMENTS	0	0
Fair Value, Inputs, Level 2 \| Time deposits
Assets, Fair Value Disclosure [Abstract]
ASSETS AT FAIR VALUE	981	1,791
CASH AND EQUIVALENTS	979	1,775
SHORT-TERM INVESTMENTS	2	16
Fair Value, Inputs, Level 2 \| U.S. Agency securities
Assets, Fair Value Disclosure [Abstract]
ASSETS AT FAIR VALUE	1	1
CASH AND EQUIVALENTS	0	0
SHORT-TERM INVESTMENTS	$ 1	$ 1

Fair Value Measurements - Derivative Assets and Liabilities at Fair Value (Detail) - USD ($)	May 31, 2020	May 31, 2019
Derivatives, Fair Value [Line Items]
ACCRUED LIABILITIES	$ 190,000,000	$ 52,000,000
Collateral received from counterparties to hedging instruments	0	289,000,000
Fair Value, Measurements, Recurring
Derivatives, Fair Value [Line Items]
Reduction in derivative liabilities if netted	76,000,000
Reduction in derivative assets if netted	76,000,000	50,000,000
Fair Value, Measurements, Recurring \| Foreign exchange forwards and options
Derivatives, Fair Value [Line Items]
Reduction in derivative liabilities if netted		50,000,000
Cash and Cash Equivalents
Derivatives, Fair Value [Line Items]
Collateral received from counterparties to hedging instruments	0
Cash and Cash Equivalents \| Foreign exchange forwards and options
Derivatives, Fair Value [Line Items]
Collateral received from counterparties to hedging instruments	0	289,000,000
Fair value of derivative liability collateral	0	0
Fair Value, Inputs, Level 2 \| Fair Value, Measurements, Recurring
Derivatives, Fair Value [Line Items]
ASSETS AT FAIR VALUE	95,000,000	622,000,000
OTHER CURRENT ASSETS	92,000,000	616,000,000
OTHER LONG-TERM ASSETS	3,000,000	6,000,000
LIABILITIES AT FAIR VALUE	207,000,000	54,000,000
ACCRUED LIABILITIES	190,000,000	52,000,000
OTHER LONG-TERM LIABILITIES	17,000,000	2,000,000
Fair Value, Inputs, Level 2 \| Fair Value, Measurements, Recurring \| Foreign exchange forwards and options
Derivatives, Fair Value [Line Items]
ASSETS AT FAIR VALUE	94,000,000	611,000,000
OTHER CURRENT ASSETS	91,000,000	611,000,000
OTHER LONG-TERM ASSETS	3,000,000	0
LIABILITIES AT FAIR VALUE	205,000,000	51,000,000
ACCRUED LIABILITIES	188,000,000	51,000,000
OTHER LONG-TERM LIABILITIES	17,000,000	0
Fair Value, Inputs, Level 2 \| Fair Value, Measurements, Recurring \| Embedded derivatives
Derivatives, Fair Value [Line Items]
ASSETS AT FAIR VALUE	1,000,000	11,000,000
OTHER CURRENT ASSETS	1,000,000	5,000,000
OTHER LONG-TERM ASSETS	0	6,000,000
LIABILITIES AT FAIR VALUE	2,000,000	3,000,000
ACCRUED LIABILITIES	2,000,000	1,000,000
OTHER LONG-TERM LIABILITIES	$ 0	$ 2,000,000

Fair Value Measurements - Additional Information (Detail) - USD ($)	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value transfers between fair value hierarchy levels	$ 0	$ 0
Short-term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities with maturity dates within one year from purchase date	396,000,000
Available-for-sale securities with maturity dates over one year and less than five years from purchase date	43,000,000
Interest (income) expense, net
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest income related to cash and equivalents and short-term investments	62,000,000	$ 82,000,000	$ 70,000,000
Grupo Axo and SBF \| NIKE Brand Businesses \| Brazil, Argentina, Chile and Uruguay \| Discontinued Operations, Held-for-sale \| Other Income (Expense)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Non-recurring impairment charge	$ 405,000,000

Short-Term Borrowings and Credit Lines - Notes Payable to Banks (Detail) - USD ($) $ in Millions	May 31, 2020	May 31, 2019
Short-term Debt [Line Items]
TOTAL NOTES PAYABLE	$ 248	$ 9
Commercial paper
Short-term Debt [Line Items]
TOTAL NOTES PAYABLE	$ 248	$ 0
Notes payable - interest rate	1.65%	0.00%
Notes Payable
Short-term Debt [Line Items]
TOTAL NOTES PAYABLE	$ 248	$ 9
Notes Payable \| UNITED STATES
Short-term Debt [Line Items]
TOTAL NOTES PAYABLE	$ 0	$ 2
Notes payable - interest rate	0.00%	0.00%
Notes Payable \| Non-U.S. operations
Short-term Debt [Line Items]
TOTAL NOTES PAYABLE	$ 0	$ 7
Notes payable - interest rate	0.00%	26.00%

Short-Term Borrowings and Credit Lines - Additional Information (Detail) - USD ($)	Apr. 06, 2020	Aug. 16, 2019	May 31, 2020	May 31, 2019	Aug. 28, 2015
Short-term Debt [Line Items]
Notes payable			$ 248,000,000	$ 9,000,000
Revolving Credit Facility
Short-term Debt [Line Items]
Borrowing capacity		$ 2,000,000,000			$ 2,000,000,000
Maximum borrowing capacity, additional amount		$ 3,000,000,000
Line of credit facility extension period after maturity		1 year
Revolving credit facility, fee		0.04%
Line of credit facility, amount outstanding			0	$ 0
London Interbank Offered Rate (LIBOR) \| Revolving Credit Facility
Short-term Debt [Line Items]
Basis spread on variable rate, above LIBOR		0.46%
Committed Credit Facility, Maturing April 5, 2021 \| Line of Credit
Short-term Debt [Line Items]
Borrowing capacity	$ 2,000,000,000
Revolving credit facility, fee	0.20%
Notes payable			$ 0
Committed Credit Facility, Maturing April 5, 2021 \| London Interbank Offered Rate (LIBOR) \| Line of Credit
Short-term Debt [Line Items]
Basis spread on variable rate, above LIBOR	1.05%

Long-Term Debt - Net of Unamortized Premiums, Discounts and Debt Issuance Costs (Detail)	12 Months Ended
	May 31, 2020 USD ($)	May 31, 2020 JPY (¥)	May 31, 2019 USD ($)
Debt Instrument [Line Items]
Long Term Debt	$ 9,409,000,000		$ 3,470,000,000
Less current maturities	3,000,000		6,000,000
TOTAL LONG-TERM DEBT	9,406,000,000		3,464,000,000
Corporate Bond Payables \| 2.25% Corporate bond, payable May 1, 2023
Debt Instrument [Line Items]
Long-term debt, original principal	$ 500,000,000
Long-term debt, interest rate	2.25%	2.25%
Long-term debt, interest payment	Semi-Annually
Long Term Debt	$ 499,000,000		498,000,000
Corporate Bond Payables \| 2.40% Corporate bond, payable March 27, 2025
Debt Instrument [Line Items]
Long-term debt, original principal	$ 1,000,000,000
Long-term debt, interest rate	2.40%	2.40%
Long-term debt, interest payment	Semi-Annually
Long Term Debt	$ 994,000,000		0
Corporate Bond Payables \| 2.38% Corporate bond, payable November 1, 2026
Debt Instrument [Line Items]
Long-term debt, original principal	$ 1,000,000,000
Long-term debt, interest rate	2.38%	2.38%
Long-term debt, interest payment	Semi-Annually
Long Term Debt	$ 995,000,000		994,000,000
Corporate Bond Payables \| 2.75% Corporate bond, payable March 27, 2027
Debt Instrument [Line Items]
Long-term debt, original principal	$ 1,000,000,000
Long-term debt, interest rate	2.75%	2.75%
Long-term debt, interest payment	Semi-Annually
Long Term Debt	$ 994,000,000		0
Corporate Bond Payables \| 2.85% Corporate bond, payable March 27, 2030
Debt Instrument [Line Items]
Long-term debt, original principal	$ 1,500,000,000
Long-term debt, interest rate	2.85%	2.85%
Long-term debt, interest payment	Semi-Annually
Long Term Debt	$ 1,489,000,000		0
Corporate Bond Payables \| 3.25% Corporate bond, payable March 27, 2040
Debt Instrument [Line Items]
Long-term debt, original principal	$ 1,000,000,000
Long-term debt, interest rate	3.25%	3.25%
Long-term debt, interest payment	Semi-Annually
Long Term Debt	$ 985,000,000		0
Corporate Bond Payables \| 3.63% Corporate bond, payable May 1, 2043
Debt Instrument [Line Items]
Long-term debt, original principal	$ 500,000,000
Long-term debt, interest rate	3.63%	3.63%
Long-term debt, interest payment	Semi-Annually
Long Term Debt	$ 495,000,000		495,000,000
Corporate Bond Payables \| 3.88% Corporate bond, payable November 1, 2045
Debt Instrument [Line Items]
Long-term debt, original principal	$ 1,000,000,000
Long-term debt, interest rate	3.88%	3.88%
Long-term debt, interest payment	Semi-Annually
Long Term Debt	$ 984,000,000		983,000,000
Corporate Bond Payables \| 3.38% Corporate bond, payable November 1, 2046
Debt Instrument [Line Items]
Long-term debt, original principal	$ 500,000,000
Long-term debt, interest rate	3.38%	3.38%
Long-term debt, interest payment	Semi-Annually
Long Term Debt	$ 491,000,000		491,000,000
Corporate Bond Payables \| 3.38% Corporate bond, payable March 27, 2050
Debt Instrument [Line Items]
Long-term debt, original principal	$ 1,500,000,000
Long-term debt, interest rate	3.38%	3.38%
Long-term debt, interest payment	Semi-Annually
Long Term Debt	$ 1,480,000,000		0
Notes Payable \| 2.60% Japanese Yen note, maturing August 20, 2001 through November 20, 2020
Debt Instrument [Line Items]
Long-term debt, original principal \| ¥		¥ 9,000,000,000
Long-term debt, interest rate	2.60%	2.60%
Long-term debt, interest payment	Quarterly
Long Term Debt	$ 2,000,000		6,000,000
Notes Payable \| 2.00% Japanese Yen note, maturing August 20, 2001 through November 20, 2020
Debt Instrument [Line Items]
Long-term debt, original principal \| ¥		¥ 4,000,000,000
Long-term debt, interest rate	2.00%	2.00%
Long-term debt, interest payment	Quarterly
Long Term Debt	$ 1,000,000		$ 3,000,000

Long-Term Debt - Narrative (Detail)	12 Months Ended
Long-Term Debt - Narrative (Detail)	May 31, 2020 JPY (¥)
Corporate Bond Payables
Debt Instrument [Line Items]
Percent of aggregate principal amount of the notes to be redeemed	100.00%
Notes Payable \| 2.6% and 2.0% Japanese Yen note, maturing August 20, 2001 through November 20, 2020
Debt Instrument [Line Items]
Long-term debt, original principal	¥ 13,000,000,000.0

Long-Term Debt - Additional Information (Detail) - USD ($) $ in Millions	May 31, 2020	May 31, 2019
Debt Instrument [Line Items]
Maturity of long-term debt next fiscal year	$ 3
Maturity of long-term debt in year two	0
Maturity of long-term debt in year three	500
Maturity of long-term debt in year four	0
Maturity of long-term debt in year five	1,000
Fair Value, Inputs, Level 2
Debt Instrument [Line Items]
Fair value of long term debt	$ 10,645	$ 3,524

Income Taxes - Income before Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Income before income taxes:
United States	$ 2,954	$ 593	$ 744
Foreign	(67)	4,208	3,581
Income before income taxes	$ 2,887	$ 4,801	$ 4,325

Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Current:
Federal	$ (109)	$ 74	$ 1,167
State	81	56	45
Foreign	756	608	533
Total Current	728	738	1,745
Deferred:
Federal	(231)	(33)	595
State	(47)	(9)	25
Foreign	(102)	76	27
Total Deferred	(380)	34	647
Income tax expense	$ 348	$ 772	$ 2,392

Income Taxes - Reconciliation from United States Statutory Federal Income Tax Rate to Effective Income Tax Rate (Detail)	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Effective Income Tax Rate Reconciliation [Line Items]
Federal income tax rate	21.00%	21.00%	29.20%
State taxes, net of federal benefit	0.80%	1.00%	0.80%
Foreign earnings	5.90%	(1.10%)	(19.20%)
Foreign-derived intangible income benefit related to the Tax Act	(0.081)	0	0
Transition tax related to the Tax Act	0.00%	0.00%	43.30%
Remeasurement of deferred tax assets and liabilities related to the Tax Act	0.00%	0.00%	3.70%
Excess tax benefits from share-based compensation	(7.20%)	(3.60%)	(5.30%)
Income tax audits and contingency reserves	(1.40%)	1.30%	2.90%
U.S. research and development tax credit	(1.80%)	(1.00%)	(0.60%)
Other, net	2.90%	(1.50%)	0.50%
EFFECTIVE INCOME TAX RATE	12.10%	16.10%	55.30%
Withholding Taxes
Effective Income Tax Rate Reconciliation [Line Items]
Foreign earnings	6.50%
Held For Sale Accounting Items
Effective Income Tax Rate Reconciliation [Line Items]
Foreign earnings	2.90%
Statutory Rate Differences And Other Items
Effective Income Tax Rate Reconciliation [Line Items]
Foreign earnings	(3.50%)
Modification Of Treatment Of Certain Research And Development Expenditures
Effective Income Tax Rate Reconciliation [Line Items]
Income tax audits and contingency reserves	(2.90%)
Resolution Of IRS Audit And Other Matters
Effective Income Tax Rate Reconciliation [Line Items]
Income tax audits and contingency reserves	1.50%
Intra-Entity Transfers Of Inventory
Effective Income Tax Rate Reconciliation [Line Items]
Other, net	2.30%
Other Items
Effective Income Tax Rate Reconciliation [Line Items]
Other, net	0.60%

Income Taxes - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions	May 31, 2020	May 31, 2019
Deferred tax assets:
Inventories	$ 84	$ 66
Sales return reserves	115	128
Deferred compensation	295	271
Stock-based compensation	168	156
Reserves and accrued liabilities	120	101
Operating lease liabilities	491	0
Capitalized research and development expenditures	189	0
Net operating loss carry-forwards	21	81
Other	127	125
Total deferred tax assets	1,610	928
Valuation allowance	(26)	(88)
Total deferred tax assets after valuation allowance	1,584	840
Deferred tax liabilities:
Foreign withholding tax on undistributed earnings of foreign subsidiaries	(165)	(235)
Property, plant and equipment	(232)	(188)
Right-of-use assets	(423)	0
Other	(32)	(41)
Total deferred tax liabilities	(852)	(464)
NET DEFERRED TAX ASSET	$ 732	$ 376

Income Taxes - Reconciliation of Changes in Gross Balance of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits, as of the beginning of the period	$ 808	$ 698	$ 461
Gross increases related to prior period tax positions	181	85	19
Gross decreases related to prior period tax positions	(171)	(32)	(12)
Gross increases related to current period tax positions	50	81	249
Settlements	(58)	0	0
Lapse of statute of limitations	(28)	(35)	(20)
Decrease due to currency translation	(11)
Increase due to currency translation		11	1
UNRECOGNIZED TAX BENEFITS, AS OF THE END OF THE PERIOD	$ 771	$ 808	$ 698

Income Taxes - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018	May 31, 2017
Income Tax Contingency [Line Items]
Federal income tax rate	21.00%	21.00%	29.20%
Effective tax rate, change from prior period		(5.50%)
Total gross unrecognized tax benefits, excluding related interest and penalties	$ 771	$ 808	$ 698	$ 461
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	536
Increase (decrease) in liability for payment of interest and penalties	(16)	17	(14)
Accrued interest and penalties related to uncertain tax positions (excluding federal benefit)	158	174
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
Tax holiday, expiration period	2021
Decrease in income tax expense related to tax holiday	$ 238	$ 167	$ 126
Decrease in income tax expense related to tax holiday per diluted share, (in dollars per share)	$ 0.15	$ 0.10	$ 0.08
Valuation allowance increase (decrease) related to tax benefits of certain subsidiaries with operating losses	$ (62)	$ (7)	$ 13
Deferred tax assets, tax credit carryforwards, foreign	15
Available domestic and foreign loss carry-forwards	83
Deferred income taxes and other liabilities
Income Tax Contingency [Line Items]
Long-term income taxes payable	757	$ 902
NETHERLANDS
Income Tax Contingency [Line Items]
Undistributed earnings of foreign subsidiaries	8,100
Withholding taxes that would be payable upon remittance of undistributed earnings	$ 1,200

Income Taxes - Available Domestic and Foreign Loss Carryforwards (Detail) $ in Millions	May 31, 2020 USD ($)
Income Tax Disclosure [Abstract]
2021	$ 0
2022	3
2023	2
2024	2
2025-2040	59
INDEFINITE	17
Net Operating Losses	$ 83

Redeemable Preferred Stock - Additional Information (Detail) - Non-marketable preferred stock $ / shares in Units, $ in Millions	12 Months Ended
	May 31, 2020 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

Common Stock and Stock-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Millions	12 Months Ended
	May 31, 2020 USD ($) $ / shares shares	May 31, 2019 USD ($) $ / shares shares	May 31, 2018 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) \| shares	400,000,000
Common stock conversion	Each share of Class A Common Stock is convertible into one share of Class B Common Stock.
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) \| shares	2,400,000,000
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
Stock Incentive Plan \| Class B Common Stock
Common Stock and Share Based Compensation [Line Items]
Shares available for grant (in shares) \| shares	718,000,000
Minimum term of market traded options for estimates of expected volatility (in years)	1 year
Weighted average remaining contractual life for options outstanding (in years)	6 years 2 months 12 days
Weighted average remaining contractual life for options exercisable (in years)	4 years 6 months
Aggregate intrinsic value for options outstanding \| $	$ 3,316
Aggregate intrinsic value for options exercisable \| $	2,506
Total intrinsic value of options exercised \| $	1,161	$ 938	$ 889
Stock options \| Stock Incentive Plan
Common Stock and Share Based Compensation [Line Items]
Unrecognized compensation costs from stock options, net of estimated forfeitures \| $	$ 411
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 7 months 6 days
Stock options \| Stock Incentive Plan \| Class B Common Stock
Common Stock and Share Based Compensation [Line Items]
Weighted average fair value per share of the options granted (in dollars per share) \| $ / shares	$ 18.71	$ 22.78	$ 9.82
Employee Stock \| Class B Common Stock
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) \| shares	2,700,000	2,500,000	3,100,000

Common Stock and Stock-Based Compensation - Total Stock-Based Compensation Expense (Detail) - USD ($) $ in Millions	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 429	$ 325	$ 218
Accelerated stock option expense	53	41	18
Tax benefit related to stock-based compensation expense	207	175	230
Class B Common Stock
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	429	325	218
Class B Common Stock \| Stock options
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	237	207	149
Class B Common Stock \| ESPPs
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	53	40	34
Class B Common Stock \| Restricted stock
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 139	$ 78	$ 35

Common Stock and Stock-Based Compensation - Weighted Average Assumptions Used to Estimate Fair Values (Detail) - Stock options	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	1.00%	1.00%	1.20%
Expected volatility	23.00%	26.60%	16.40%
Weighted average expected life	6 years	6 years	6 years
Risk-free interest rate	1.50%	2.80%	2.00%

Common Stock and Stock-Based Compensation - Stock Option Transactions Under Plan (Detail) - Stock Incentive Plan shares in Millions	12 Months Ended
	May 31, 2020 $ / shares shares
Options Outstanding - Shares
Beginning Balance (in shares) \| shares	91.3
Exercised (in shares) \| shares	(20.1)
Forfeited (in shares) \| shares	(2.2)
Granted (in shares) \| shares	19.1
Ending Balance (in shares) \| shares	88.1
Options exercisable (in shares) \| shares	48.5
Options Outstanding - Weighted-Average Option Price
Beginning Balance (in dollars per share) \| $ / shares	$ 50.59
Exercised (in dollars per share) \| $ / shares	35.26
Forfeited (in dollars per share) \| $ / shares	75.74
Granted (in dollars per share) \| $ / shares	85.29
Ending Balance (in dollars per share) \| $ / shares	60.98
Options exercisable (in dollars per share) \| $ / shares	$ 46.91

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, 2020	May 31, 2019	May 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested, fair value	$ 98	$ 44	$ 113
Unrecognized compensation costs from restricted stock, net of estimated forfeitures	$ 342
Unrecognized compensation costs from stock options, net of estimated forfeitures, to be recognized as operating overhead expense over a weighted average period (in years)	2 years 8 months 12 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested Awards, beginning balance (in shares)	4.4
Vested (in shares)	(1.1)
Forfeited (in shares)	(0.3)
Granted (in shares)	3.8
Nonvested Awards, ending balance (in shares)	6.8	4.4
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Nonvested Awards, Weighted Average Grant Date Fair Value, beginning balance (in dollars per share)	$ 70.93
Vested, Weighted Average Grant Date Fair Value (in dollars per share)	72.64
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share)	79.62
Granted, Weighted Average Grant Date Fair Value (in dollars per share)	88.26	$ 80.95	$ 62.51
Nonvested Awards, Weighted Average Grant Date Fair Value, ending balance (in dollars per share)	$ 79.84	$ 70.93

Earnings Per Share - Additional Information (Detail) - shares shares in Millions	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
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	30.6	17.5	42.9

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, 2020	May 31, 2019	May 31, 2018
Earnings Per Share [Abstract]
Net income available to common stockholders	$ 2,539	$ 4,029	$ 1,933
Determination of shares:
Weighted average common shares outstanding	1,558.8	1,579.7	1,623.8
Assumed conversion of dilutive stock options and awards	32.8	38.7	35.3
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING	1,591.6	1,618.4	1,659.1
Earnings per common share:
Basic (in dollars per share)	$ 1.63	$ 2.55	$ 1.19
Diluted (in dollars per share)	$ 1.60	$ 2.49	$ 1.17

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=116637232&loc=SL114874131-224263

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1337-109256

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=117327953&loc=d3e4984-109258

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=116634182&loc=SL114868664-224227

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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Deferred income taxes and other long-term liabilities
Defined Contribution Plan Disclosure [Line Items]
Deferred compensation plan liabilities	$ 725	$ 647
Liability related to the unfunded pension plan	79	73
General and Administrative Expense
Defined Contribution Plan Disclosure [Line Items]
401(k) employee savings plans, expenses	107	90	$ 80
General and Administrative Expense \| Profit Sharing Plan
Defined Contribution Plan Disclosure [Line Items]
Contribution and cash award expenses included in selling and administrative expenses	0	37	59
General and Administrative Expense \| Long Term Incentive Plan
Defined Contribution Plan Disclosure [Line Items]
Contribution and cash award expenses included in selling and administrative expenses	$ 66	$ 83	$ 33

Risk Management and Derivatives - Additional Information (Detail) - USD ($)	12 Months Ended
	May 31, 2020	May 31, 2019
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Deferred net gains (net of tax) on both outstanding and matured derivatives accumulated in other comprehensive income are expected to be reclassified to net income during the next twelve months as a result of underlying hedged transactions also being recorded in net income	$ 374,000,000
Maximum term over which the Company is hedging exposures to the variability of cash flows for its forecasted and recorded transactions (in months)	24 months
Derivative, net liability position, aggregate fair value	$ 137,000,000
Derivative, net liability position, aggregate fair value, greater than $50 million	0
Collateral received from counterparties to hedging instruments	0	$ 289,000,000
Not designated as derivative instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, notional amount	4,100,000,000
Embedded derivatives
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, notional amount	281,000,000
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
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%
Derivative, notional amount	$ 8,100,000,000
Derivatives designated as cash flow hedges \| Minimum
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Typical time period that anticipated exposures are hedged against (in months)	12 months
Derivatives designated as cash flow hedges \| Maximum
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Typical time period that anticipated exposures are hedged against (in months)	24 months
Derivatives designated as fair value hedges \| Interest rate swaps
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, notional amount	$ 0
Derivatives designated as net investment hedges \| Foreign exchange forwards and options
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative assets (liabilities), at fair value, net	0
Cash and Cash Equivalents
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Collateral received from counterparties to hedging instruments	0
Cash and Cash Equivalents \| Foreign exchange forwards and options
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Collateral received from counterparties to hedging instruments	$ 0	$ 289,000,000

Risk Management and Derivatives - FV of Derivative Instruments Included within Consolidated Balance Sheet (Detail) - USD ($) $ in Millions	May 31, 2020	May 31, 2019
Derivatives, Fair Value [Line Items]
DERIVATIVE ASSETS	$ 95	$ 622
Derivatives formally designated as hedging instruments
Derivatives, Fair Value [Line Items]
DERIVATIVE ASSETS	44	509
DERIVATIVE LIABILITIES	190	5
Derivatives formally designated as hedging instruments \| Foreign Exchange Contract \| Prepaid expenses and other current assets
Derivatives, Fair Value [Line Items]
DERIVATIVE ASSETS	43	509
Derivatives formally designated as hedging instruments \| Foreign Exchange Contract \| Deferred income taxes and other assets
Derivatives, Fair Value [Line Items]
DERIVATIVE ASSETS	1	0
Derivatives formally designated as hedging instruments \| Foreign Exchange Contract \| Accrued liabilities
Derivatives, Fair Value [Line Items]
DERIVATIVE LIABILITIES	173	5
Derivatives formally designated as hedging instruments \| Foreign Exchange Contract \| Deferred income taxes and other liabilities
Derivatives, Fair Value [Line Items]
DERIVATIVE LIABILITIES	17	0
Derivatives not designated as hedging instruments
Derivatives, Fair Value [Line Items]
DERIVATIVE ASSETS	51	113
DERIVATIVE LIABILITIES	207	54
Derivatives not designated as hedging instruments \| Deferred income taxes and other liabilities
Derivatives, Fair Value [Line Items]
DERIVATIVE LIABILITIES	17	49
Derivatives not designated as hedging instruments \| Foreign Exchange Contract \| Prepaid expenses and other current assets
Derivatives, Fair Value [Line Items]
DERIVATIVE ASSETS	48	102
Derivatives not designated as hedging instruments \| Foreign Exchange Contract \| Deferred income taxes and other assets
Derivatives, Fair Value [Line Items]
DERIVATIVE ASSETS	2	0
Derivatives not designated as hedging instruments \| Foreign Exchange Contract \| Accrued liabilities
Derivatives, Fair Value [Line Items]
DERIVATIVE LIABILITIES	15	46
Derivatives not designated as hedging instruments \| Embedded derivatives \| Prepaid expenses and other current assets
Derivatives, Fair Value [Line Items]
DERIVATIVE ASSETS	1	5
Derivatives not designated as hedging instruments \| Embedded derivatives \| Deferred income taxes and other assets
Derivatives, Fair Value [Line Items]
DERIVATIVE ASSETS	0	6
Derivatives not designated as hedging instruments \| Embedded derivatives \| Accrued liabilities
Derivatives, Fair Value [Line Items]
DERIVATIVE LIABILITIES	2	1
Derivatives not designated as hedging instruments \| Embedded derivatives \| Deferred income taxes and other liabilities
Derivatives, Fair Value [Line Items]
DERIVATIVE LIABILITIES	$ 0	$ 2

Risk Management and Derivatives - Effects Of Cash Flow Hedges in Statement of Income (Details) - USD ($) $ in Millions	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Derivative Instruments, Gain (Loss) [Line Items]
Revenues	$ 37,403	$ 39,117	$ 36,397
Cost of sales	21,162	21,643	20,441
Demand creation expense	3,592	3,753	3,577
Other (income) expense, net	139	(78)	66
Interest expense (income), net	89	49	54
Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax	519	76	(131)
Foreign exchange forwards and options \| Revenue \| Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax	(17)	(5)	34
Foreign exchange forwards and options \| Cost of sales \| Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax	364	53	(90)
Foreign exchange forwards and options \| Demand creation expense \| Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax	(2)	0	1
Foreign exchange forwards and options \| Other (income) expense, net \| Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax	181	35	(69)
Interest rate swaps \| Interest (income) expense, net \| Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax	$ (7)	$ (7)	$ (7)

Risk Management and Derivatives - Amounts Affecting Consolidated Statements of Income (Detail) - USD ($) $ in Millions	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Foreign Exchange Contract \| Other (income) expense, net \| Derivatives not designated as hedging instruments
Derivative Instruments, Gain (Loss) [Line Items]
AMOUNT OF GAIN (LOSS) RECOGNIZED IN INCOME ON DERIVATIVES	$ 76	$ 166	$ (57)
Embedded derivatives \| Other (income) expense, net \| Derivatives not designated as hedging instruments
Derivative Instruments, Gain (Loss) [Line Items]
AMOUNT OF GAIN (LOSS) RECOGNIZED IN INCOME ON DERIVATIVES	(1)	7	(4)
Derivatives designated as cash flow hedges
Derivative Instruments, Gain (Loss) [Line Items]
AMOUNT OF GAIN (LOSS) RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) ON DERIVATIVES	402	577	(49)
AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME	519	76	(131)
Derivatives designated as cash flow hedges \| Foreign Exchange Contract \| Revenue
Derivative Instruments, Gain (Loss) [Line Items]
AMOUNT OF GAIN (LOSS) RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) ON DERIVATIVES	28	14	19
AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME	(17)	(5)	34
Derivatives designated as cash flow hedges \| Foreign Exchange Contract \| Cost of sales
Derivative Instruments, Gain (Loss) [Line Items]
AMOUNT OF GAIN (LOSS) RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) ON DERIVATIVES	283	405	(50)
AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME	364	53	(90)
Derivatives designated as cash flow hedges \| Foreign Exchange Contract \| Demand creation expense
Derivative Instruments, Gain (Loss) [Line Items]
AMOUNT OF GAIN (LOSS) RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) ON DERIVATIVES	1	2	1
AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME	(2)	0	1
Derivatives designated as cash flow hedges \| Foreign Exchange Contract \| Other (income) expense, net
Derivative Instruments, Gain (Loss) [Line Items]
AMOUNT OF GAIN (LOSS) RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) ON DERIVATIVES	90	156	(19)
AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME	181	35	(69)
Derivatives designated as cash flow hedges \| Interest rate swaps \| Interest (income) expense, net
Derivative Instruments, Gain (Loss) [Line Items]
AMOUNT OF GAIN (LOSS) RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) ON DERIVATIVES	0	0	0
AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME	$ (7)	$ (7)	$ (7)

Accumulated Other Comprehensive Income (Loss) - Changes in AOCI (Detail) - USD ($) $ in Millions	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 9,040	$ 9,812	$ 12,407
Other comprehensive income (loss):
Other comprehensive gains (losses) before reclassifications, net of tax	230	410
Reclassifications to net income of previously deferred (gains) losses, net of tax	(517)	(87)
Total other comprehensive income (loss), net of tax	(287)	323	104
Ending balance	8,055	9,040	9,812
Other comprehensive income, before reclassification, tax benefit (expense)	(14)	(3)
Reclassification from AOCI, current period, tax expense (benefit)	2	6
Foreign Currency Translation Adjustment
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(346)	(173)
Other comprehensive income (loss):
Other comprehensive gains (losses) before reclassifications, net of tax	(149)	(173)
Reclassifications to net income of previously deferred (gains) losses, net of tax	1	0
Total other comprehensive income (loss), net of tax	(148)	(173)
Ending balance	(494)	(346)	(173)
Other comprehensive income, before reclassification, tax benefit (expense)	0	0
Reclassification from AOCI, current period, tax expense (benefit)	0	0
CASH FLOW HEDGES
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	520	17
Other comprehensive income (loss):
Other comprehensive gains (losses) before reclassifications, net of tax	387	573
Reclassifications to net income of previously deferred (gains) losses, net of tax	(517)	(70)
Total other comprehensive income (loss), net of tax	(130)	503
Ending balance	390	520	17
Other comprehensive income, before reclassification, tax benefit (expense)	(15)	(4)
Reclassification from AOCI, current period, tax expense (benefit)	2	6
Net Investment Hedges
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	115	115
Other comprehensive income (loss):
Other comprehensive gains (losses) before reclassifications, net of tax	0	0
Reclassifications to net income of previously deferred (gains) losses, net of tax	0	0
Total other comprehensive income (loss), net of tax	0	0
Ending balance	115	115	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	(58)	(51)
Other comprehensive income (loss):
Other comprehensive gains (losses) before reclassifications, net of tax	(8)	10
Reclassifications to net income of previously deferred (gains) losses, net of tax	(1)	(17)
Total other comprehensive income (loss), net of tax	(9)	(7)
Ending balance	(67)	(58)	(51)
Other comprehensive income, before reclassification, tax benefit (expense)	1	1
Reclassification from AOCI, current period, tax expense (benefit)	0	0
TOTAL
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	231	(92)	(213)
Other comprehensive income (loss):
Ending balance	$ (56)	$ 231	$ (92)

Accumulated Other Comprehensive Income (Loss) - Reclassification out of AOCI (Details) - USD ($) $ in Millions	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Other expense (income), net	$ (139)	$ 78	$ (66)
Interest expense (income), net	(89)	(49)	(54)
Revenues	37,403	39,117	36,397
Cost of sales	(21,162)	(21,643)	(20,441)
Demand creation expense	(3,592)	(3,753)	(3,577)
Income before income taxes	2,887	4,801	4,325
Tax benefit (expense)	(348)	(772)	$ (2,392)
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	517	87
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	(1)	0
Income before income taxes	(1)	0
Tax benefit (expense)	0	0
Gain (loss), net of tax	(1)	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	519	76
Tax benefit (expense)	(2)	(6)
Gain (loss), net of tax	517	70
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	181	35
Revenues	(17)	(5)
Cost of sales	364	53
Demand creation expense	(2)	0
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	(7)	(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	1	17
Income before income taxes	1	17
Tax benefit (expense)	0	0
Gain (loss), net of tax	$ 1	$ 17

Revenues (Details) - USD ($) $ in Millions	12 Months Ended
Revenues (Details) - USD ($) $ in Millions	May 31, 2020	May 31, 2019	May 31, 2018
Disaggregation of Revenue [Line Items]
Revenues	$ 37,403	$ 39,117	$ 36,397
Allowance for sales discounts returns and miscellaneous claims	1,178	1,218
Sales to Wholesale Customers
Disaggregation of Revenue [Line Items]
Revenues	24,310	26,670
Sales through Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenues	12,984	12,306
Other
Disaggregation of Revenue [Line Items]
Revenues	109	141
Footwear
Disaggregation of Revenue [Line Items]
Revenues	24,947	25,880
Apparel
Disaggregation of Revenue [Line Items]
Revenues	11,042	11,668
Equipment
Disaggregation of Revenue [Line Items]
Revenues	1,305	1,428
Other
Disaggregation of Revenue [Line Items]
Revenues	109	141
Operating Segments \| NIKE Brand
Disaggregation of Revenue [Line Items]
Revenues	35,568	37,218
Operating Segments \| NIKE Brand \| Sales to Wholesale Customers
Disaggregation of Revenue [Line Items]
Revenues	23,156	25,423
Operating Segments \| NIKE Brand \| Sales through Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenues	12,382	11,753
Operating Segments \| NIKE Brand \| Other
Disaggregation of Revenue [Line Items]
Revenues	30	42
Operating Segments \| NIKE Brand \| Footwear
Disaggregation of Revenue [Line Items]
Revenues	23,305	24,222
Operating Segments \| NIKE Brand \| Apparel
Disaggregation of Revenue [Line Items]
Revenues	10,953	11,550
Operating Segments \| NIKE Brand \| Equipment
Disaggregation of Revenue [Line Items]
Revenues	1,280	1,404
Operating Segments \| NIKE Brand \| Other
Disaggregation of Revenue [Line Items]
Revenues	30	42
Operating Segments \| Converse
Disaggregation of Revenue [Line Items]
Revenues	1,846	1,906
Operating Segments \| Converse \| Sales to Wholesale Customers
Disaggregation of Revenue [Line Items]
Revenues	1,154	1,247
Operating Segments \| Converse \| Sales through Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenues	602	553
Operating Segments \| Converse \| Other
Disaggregation of Revenue [Line Items]
Revenues	90	106
Operating Segments \| Converse \| Footwear
Disaggregation of Revenue [Line Items]
Revenues	1,642	1,658
Operating Segments \| Converse \| Apparel
Disaggregation of Revenue [Line Items]
Revenues	89	118
Operating Segments \| Converse \| Equipment
Disaggregation of Revenue [Line Items]
Revenues	25	24
Operating Segments \| Converse \| Other
Disaggregation of Revenue [Line Items]
Revenues	90	106
Global Brand Divisions
Disaggregation of Revenue [Line Items]
Revenues	30	42
Global Brand Divisions \| Sales to Wholesale Customers
Disaggregation of Revenue [Line Items]
Revenues	0	0
Global Brand Divisions \| Sales through Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenues	0	0
Global Brand Divisions \| Other
Disaggregation of Revenue [Line Items]
Revenues	30	42
Global Brand Divisions \| Footwear
Disaggregation of Revenue [Line Items]
Revenues	0	0
Global Brand Divisions \| Apparel
Disaggregation of Revenue [Line Items]
Revenues	0	0
Global Brand Divisions \| Equipment
Disaggregation of Revenue [Line Items]
Revenues	0	0
Global Brand Divisions \| Other
Disaggregation of Revenue [Line Items]
Revenues	30	42
Corporate
Disaggregation of Revenue [Line Items]
Revenues	(11)	(7)	$ 26
Corporate \| Sales to Wholesale Customers
Disaggregation of Revenue [Line Items]
Revenues	0	0
Corporate \| Sales through Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenues	0	0
Corporate \| Other
Disaggregation of Revenue [Line Items]
Revenues	(11)	(7)
Corporate \| Footwear
Disaggregation of Revenue [Line Items]
Revenues	0	0
Corporate \| Apparel
Disaggregation of Revenue [Line Items]
Revenues	0	0
Corporate \| Equipment
Disaggregation of Revenue [Line Items]
Revenues	0	0
Corporate \| Other
Disaggregation of Revenue [Line Items]
Revenues	(11)	(7)
North America \| Operating Segments \| NIKE Brand
Disaggregation of Revenue [Line Items]
Revenues	14,484	15,902
North America \| Operating Segments \| NIKE Brand \| Sales to Wholesale Customers
Disaggregation of Revenue [Line Items]
Revenues	9,371	10,875
North America \| Operating Segments \| NIKE Brand \| Sales through Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenues	5,113	5,027
North America \| Operating Segments \| NIKE Brand \| Other
Disaggregation of Revenue [Line Items]
Revenues	0	0
North America \| Operating Segments \| NIKE Brand \| Footwear
Disaggregation of Revenue [Line Items]
Revenues	9,329	10,045
North America \| Operating Segments \| NIKE Brand \| Apparel
Disaggregation of Revenue [Line Items]
Revenues	4,639	5,260
North America \| Operating Segments \| NIKE Brand \| Equipment
Disaggregation of Revenue [Line Items]
Revenues	516	597
North America \| Operating Segments \| NIKE Brand \| Other
Disaggregation of Revenue [Line Items]
Revenues	0	0
Europe, Middle East & Africa \| Operating Segments \| NIKE Brand
Disaggregation of Revenue [Line Items]
Revenues	9,347	9,812
Europe, Middle East & Africa \| Operating Segments \| NIKE Brand \| Sales to Wholesale Customers
Disaggregation of Revenue [Line Items]
Revenues	6,574	7,076
Europe, Middle East & Africa \| Operating Segments \| NIKE Brand \| Sales through Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenues	2,773	2,736
Europe, Middle East & Africa \| Operating Segments \| NIKE Brand \| Other
Disaggregation of Revenue [Line Items]
Revenues	0	0
Europe, Middle East & Africa \| Operating Segments \| NIKE Brand \| Footwear
Disaggregation of Revenue [Line Items]
Revenues	5,892	6,293
Europe, Middle East & Africa \| Operating Segments \| NIKE Brand \| Apparel
Disaggregation of Revenue [Line Items]
Revenues	3,053	3,087
Europe, Middle East & Africa \| Operating Segments \| NIKE Brand \| Equipment
Disaggregation of Revenue [Line Items]
Revenues	402	432
Europe, Middle East & Africa \| Operating Segments \| NIKE Brand \| Other
Disaggregation of Revenue [Line Items]
Revenues	0	0
Greater China \| Operating Segments \| NIKE Brand
Disaggregation of Revenue [Line Items]
Revenues	6,679	6,208
Greater China \| Operating Segments \| NIKE Brand \| Sales to Wholesale Customers
Disaggregation of Revenue [Line Items]
Revenues	3,803	3,726
Greater China \| Operating Segments \| NIKE Brand \| Sales through Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenues	2,876	2,482
Greater China \| Operating Segments \| NIKE Brand \| Other
Disaggregation of Revenue [Line Items]
Revenues	0	0
Greater China \| Operating Segments \| NIKE Brand \| Footwear
Disaggregation of Revenue [Line Items]
Revenues	4,635	4,262
Greater China \| Operating Segments \| NIKE Brand \| Apparel
Disaggregation of Revenue [Line Items]
Revenues	1,896	1,808
Greater China \| Operating Segments \| NIKE Brand \| Equipment
Disaggregation of Revenue [Line Items]
Revenues	148	138
Greater China \| Operating Segments \| NIKE Brand \| Other
Disaggregation of Revenue [Line Items]
Revenues	0	0
Asia Pacific & Latin America \| Operating Segments \| NIKE Brand
Disaggregation of Revenue [Line Items]
Revenues	5,028	5,254
Asia Pacific & Latin America \| Operating Segments \| NIKE Brand \| Sales to Wholesale Customers
Disaggregation of Revenue [Line Items]
Revenues	3,408	3,746
Asia Pacific & Latin America \| Operating Segments \| NIKE Brand \| Sales through Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenues	1,620	1,508
Asia Pacific & Latin America \| Operating Segments \| NIKE Brand \| Other
Disaggregation of Revenue [Line Items]
Revenues	0	0
Asia Pacific & Latin America \| Operating Segments \| NIKE Brand \| Footwear
Disaggregation of Revenue [Line Items]
Revenues	3,449	3,622
Asia Pacific & Latin America \| Operating Segments \| NIKE Brand \| Apparel
Disaggregation of Revenue [Line Items]
Revenues	1,365	1,395
Asia Pacific & Latin America \| Operating Segments \| NIKE Brand \| Equipment
Disaggregation of Revenue [Line Items]
Revenues	214	237
Asia Pacific & Latin America \| Operating Segments \| NIKE Brand \| Other
Disaggregation of Revenue [Line Items]
Revenues	0	0
Prepaid expenses and other current assets
Disaggregation of Revenue [Line Items]
Reserve for sales returns	$ 313	$ 410

Operating Segments and Related Information - Information by Operating Segments (Detail) - USD ($) $ in Millions	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	$ 37,403	$ 39,117	$ 36,397
Interest expense (income), net	89	49	54
Income before income taxes	2,887	4,801	4,325
Additions to Long-lived Assets	1,124	1,075	1,194
Depreciation	721	705	747
Global Brand Divisions
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	30	42
Corporate
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	(11)	(7)	26
Earnings Before Interest and Taxes	(1,967)	(1,810)	(1,456)
Additions to Long-lived Assets	356	333	325
Depreciation	112	116	110
NIKE Brand \| Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	35,568	37,218
Converse \| Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	1,846	1,906
NIKE Brand \| Global Brand Divisions
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	30	42	88
Earnings Before Interest and Taxes	(3,468)	(3,262)	(2,658)
Additions to Long-lived Assets	438	278	286
Depreciation	214	195	217
NIKE Brand \| NIKE Brand \| Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	35,568	37,218	34,485
Additions to Long-lived Assets	756	724	847
Depreciation	584	558	604
Converse \| Converse \| Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	1,846	1,906	1,886
Earnings Before Interest and Taxes	297	303	310
Additions to Long-lived Assets	12	18	22
Depreciation	25	31	33
North America \| NIKE Brand \| Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	14,484	15,902
North America \| NIKE Brand \| NIKE Brand \| Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	14,484	15,902	14,855
Earnings Before Interest and Taxes	2,899	3,925	3,600
Additions to Long-lived Assets	110	117	196
Depreciation	148	149	160
Europe, Middle East & Africa \| NIKE Brand \| Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	9,347	9,812
Europe, Middle East & Africa \| NIKE Brand \| NIKE Brand \| Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	9,347	9,812	9,242
Earnings Before Interest and Taxes	1,541	1,995	1,587
Additions to Long-lived Assets	139	233	240
Depreciation	132	111	116
Greater China \| NIKE Brand \| Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	6,679	6,208
Greater China \| NIKE Brand \| NIKE Brand \| Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	6,679	6,208	5,134
Earnings Before Interest and Taxes	2,490	2,376	1,807
Additions to Long-lived Assets	28	49	76
Depreciation	44	50	56
Asia Pacific & Latin America \| NIKE Brand \| Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	5,028	5,254
Asia Pacific & Latin America \| NIKE Brand \| NIKE Brand \| Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	5,028	5,254	5,166
Earnings Before Interest and Taxes	1,184	1,323	1,189
Additions to Long-lived Assets	41	47	49
Depreciation	$ 46	$ 53	$ 55

Operating Segments and Related Information - Accounts Receivable Net Inventories and Property Plant and Equipment Net by Operating Segments (Detail) - USD ($) $ in Millions	May 31, 2020	May 31, 2019
Segment Reporting, Asset Reconciling Item [Line Items]
Accounts Receivable, net	$ 2,749	$ 4,272
Inventories	7,367	5,622
Property, Plant and Equipment, net	4,866	4,744
Corporate
Segment Reporting, Asset Reconciling Item [Line Items]
Accounts Receivable, net	57	26
Inventories	90	122
Property, Plant and Equipment, net	1,916	1,673
Converse \| Converse \| Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Accounts Receivable, net	149	243
Inventories	341	269
Property, Plant and Equipment, net	80	100
NIKE Brand \| Global Brand Divisions
Segment Reporting, Asset Reconciling Item [Line Items]
Accounts Receivable, net	65	105
Inventories	137	126
Property, Plant and Equipment, net	830	665
NIKE Brand \| NIKE Brand \| Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Accounts Receivable, net	2,543	4,003
Inventories	6,936	5,231
Property, Plant and Equipment, net	2,870	2,971
North America \| NIKE Brand \| NIKE Brand \| Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Accounts Receivable, net	1,020	1,718
Inventories	3,077	2,328
Property, Plant and Equipment, net	645	814
Europe, Middle East & Africa \| NIKE Brand \| NIKE Brand \| Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Accounts Receivable, net	712	1,164
Inventories	2,070	1,390
Property, Plant and Equipment, net	885	929
Greater China \| NIKE Brand \| NIKE Brand \| Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Accounts Receivable, net	321	245
Inventories	882	693
Property, Plant and Equipment, net	214	237
Asia Pacific & Latin America \| NIKE Brand \| NIKE Brand \| Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Accounts Receivable, net	425	771
Inventories	770	694
Property, Plant and Equipment, net	$ 296	$ 326

Operating Segments and Related Information - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Regional Reporting Disclosure [Line Items]
Revenues	$ 37,403	$ 39,117	$ 36,397
UNITED STATES
Regional Reporting Disclosure [Line Items]
Revenues	14,625	16,091	$ 15,314
Long-lived assets attributable to operations (Domestic)	5,114	3,174
BELGIUM
Regional Reporting Disclosure [Line Items]
Long-lived assets attributable to operations (Domestic)	606	618
CHINA
Regional Reporting Disclosure [Line Items]
Long-lived assets attributable to operations (Domestic)	$ 457	$ 242

Commitments and Contingencies (Detail) - USD ($) $ in Millions	May 31, 2020	May 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Letters of credit outstanding	$ 239	$ 215

Leases - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
Leases [Abstract]
Operating lease cost	$ 569
Variable lease cost	$ 337
Rent expense		$ 829	$ 820

Leases - Maturities (Details) $ in Millions	May 31, 2020 USD ($)
Leases [Abstract]
Fiscal 2021	$ 550
Fiscal 2022	514
Fiscal 2023	456
Fiscal 2024	416
Fiscal 2025	374
Thereafter	1,474
Total undiscounted future cash flows related to lease payments	3,784
Less: Interest	426
Present value of lease liabilities	3,358
Minimum lease payments, agreements signed but not yet commenced	$ 67

Leases - Future Minimum Payments Due - Topic 840 (Details) $ in Millions	May 31, 2019 USD ($)
OPERATING LEASES
Fiscal 2020	$ 553
Fiscal 2021	513
Fiscal 2022	441
Fiscal 2023	386
Fiscal 2024	345
Thereafter	1,494
TOTAL	3,732
CAPITAL LEASES AND OTHER FINANCING OBLIGATIONS
Fiscal 2020	32
Fiscal 2021	34
Fiscal 2022	40
Fiscal 2023	37
Fiscal 2024	34
Thereafter	197
TOTAL	374
Fiscal 2020	585
Fiscal 2021	547
Fiscal 2022	481
Fiscal 2023	423
Fiscal 2024	379
Thereafter	1,691
TOTAL	$ 4,106

Leases - Lease Term and Discount Rate (Details)	May 31, 2020
Leases [Abstract]
Weighted-average remaining lease term (years)	8 years 8 months 12 days
Weighted-average discount rate	2.40%

Leases - Supplemental Cash Flows (Details) $ in Millions	12 Months Ended
Leases - Supplemental Cash Flows (Details) $ in Millions	May 31, 2020 USD ($)
Leases [Abstract]
Cash paid for amounts included in the measurement of lease liabilities:	$ 532
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities	$ 705

Acquisitions And Divestitures (Details) - USD ($) $ in Millions	12 Months Ended
	May 31, 2020	May 31, 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Liabilities, held-for-sale	$ 146	$ 0
Discontinued Operations, Held-for-sale \| Grupo Axo and SBF \| Brazil, Argentina, Chile and Uruguay \| NIKE Brand Businesses
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Assets, held-for-sale	506
Inventories, held-for-sale	264
Accounts receivable, held-for-sale	138
Liabilities, held-for-sale	146
Accrued liabilities, held-for-sale	85
Accounts payable, held-for-sale	49
Other Income (Expense) \| Discontinued Operations, Held-for-sale \| Grupo Axo and SBF \| Brazil, Argentina, Chile and Uruguay \| NIKE Brand Businesses
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Non-recurring impairment charge	$ 405

Schedule II - Valuation and Qualifying Accounts (Detail) - Allowance for Sales Returns - USD ($) $ in Millions	12 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2018
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
BALANCE AT BEGINNING OF PERIOD		$ 330	$ 343
CHARGED TO COSTS AND EXPENSES			640
CHARGED TO OTHER ACCOUNTS			5
WRITE-OFFS, NET			(658)
BALANCE AT END OF PERIOD			330
Accounting Standards Update 2014-09
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
BALANCE AT BEGINNING OF PERIOD	$ 843	734
CHARGED TO COSTS AND EXPENSES	1,941	1,959
CHARGED TO OTHER ACCOUNTS	(31)	(30)
WRITE-OFFS, NET	(2,071)	(1,820)
BALANCE AT END OF PERIOD	$ 682	$ 843	$ 734

Subsequent Events (Details) - Subsequent Event - One-time Termination Benefits $ in Millions	Jul. 22, 2020 USD ($)
Minimum
Restructuring Cost and Reserve [Line Items]
Expected cost	$ 200
Maximum
Restructuring Cost and Reserve [Line Items]
Expected cost	$ 250

Label	Element	Value
Accounting Standards Update 2016-02 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (1,000,000)
Accounting Standards Update 2016-02 [Member] \| Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	(1,000,000)
Accounting Standards Update 2018-02 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	0
Accounting Standards Update 2018-02 [Member] \| Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	(17,000,000)
Accounting Standards Update 2018-02 [Member] \| AOCI Attributable to Parent [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	17,000,000
Accounting Standards Update 2014-09 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	23,000,000
Accounting Standards Update 2014-09 [Member] \| Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	23,000,000
Accounting Standards Update 2016-16 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	(507,000,000)
Accounting Standards Update 2016-16 [Member] \| Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (507,000,000)