Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Aug. 31, 2018	Oct. 03, 2018
Entity Listings [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Aug. 31, 2018
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Trading Symbol	NKE
Entity Registrant Name	NIKE INC
Entity Central Index Key	0000320187
Current Fiscal Year End Date	--05-31
Entity Filer Category	Large Accelerated Filer
Class A Convertible Common Stock
Entity Listings [Line Items]
Entity Common Stock Shares Outstanding (In Shares)		315,041,752
Class B Common Stock
Entity Listings [Line Items]
Entity Common Stock Shares Outstanding (In Shares)		1,273,066,600

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Aug. 31, 2018	May 31, 2018
Current assets:
Cash and equivalents	$ 3,282	$ 4,249
Short-term investments	987	996
Accounts receivable, net	4,330	3,498
Inventories	5,227	5,261
Prepaid expenses and other current assets	1,675	1,130
Total current assets	15,501	15,134
Property, plant and equipment, net	4,487	4,454
Identifiable intangible assets, net	284	285
Goodwill	154	154
Deferred income taxes and other assets	2,057	2,509
TOTAL ASSETS	22,483	22,536
Current liabilities:
Current portion of long-term debt	6	6
Notes payable	13	336
Accounts payable	2,333	2,279
Accrued liabilities	4,174	3,269
Income taxes payable	182	150
Total current liabilities	6,708	6,040
Long-term debt	3,467	3,468
Deferred income taxes and other liabilities	3,316	3,216
Commitments and contingencies (Note 13)
Redeemable preferred stock	0	0
Shareholders’ equity:
Capital in excess of stated value	6,525	6,384
Accumulated other comprehensive loss	(30)	(92)
Retained earnings	2,494	3,517
Total shareholders’ equity	8,992	9,812
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	22,483	22,536
Class A convertible — 320 and 329 shares outstanding
Shareholders’ equity:
Common stock at stated value	0	0
Class B — 1,269 and 1,272 shares outstanding
Shareholders’ equity:
Common stock at stated value	$ 3	$ 3

Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - shares shares in Millions	Aug. 31, 2018	May 31, 2018
Class A convertible — 320 and 329 shares outstanding
Common Stock, shares outstanding	320	329
Class B — 1,269 and 1,272 shares outstanding
Common Stock, shares outstanding	1,269	1,272

Unaudited Condensed Consolidated Statements of Income - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2018	Aug. 31, 2017
Income Statement [Abstract]
Revenues	$ 9,948	$ 9,070
Cost of sales	5,551	5,108
Gross profit	4,397	3,962
Demand creation expense	964	855
Operating overhead expense	2,099	2,001
Total selling and administrative expense	3,063	2,856
Interest expense (income), net	11	16
Other expense (income), net	53	18
Income before income taxes	1,270	1,072
Income tax expense	178	122
NET INCOME	$ 1,092	$ 950
Earnings per common share:
Basic (in dollars per share)	$ 0.69	$ 0.58
Diluted (in dollars per share)	0.67	0.57
Dividends declared per common share (in dollars per share)	$ 0.2	$ 0.18

Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2018	Aug. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 1,092	$ 950
Other comprehensive income (loss), net of tax:
Change in net foreign currency translation adjustment	(128)	22
Change in net gains (losses) on cash flow hedges	193	(395)
Change in net gains (losses) on other	(3)	0
Total other comprehensive income (loss), net of tax	62	(373)
TOTAL COMPREHENSIVE INCOME	$ 1,154	$ 577

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2018	Aug. 31, 2017
Cash provided by operations:
Net income	$ 1,092	$ 950
Adjustments to reconcile net income to net cash provided by operations:
Depreciation	178	179
Deferred income taxes	18	(59)
Stock-based compensation	41	50
Amortization and other	3	6
Net foreign currency adjustments	166	(19)
Changes in certain working capital components and other assets and liabilities:
(Increase) in accounts receivable	(294)	(101)
(Increase) in inventories	(25)	(96)
(Increase) in prepaid expenses and other current and non-current assets	(83)	(543)
Increase in accounts payable, accrued liabilities and other current and non-current liabilities	205	208
Cash provided by operations	1,301	575
Cash used by investing activities:
Purchases of short-term investments	(980)	(1,663)
Maturities of short-term investments	400	1,403
Sales of short-term investments	586	518
Additions to property, plant and equipment	(343)	(270)
Disposals of property, plant and equipment	4	0
Cash used by investing activities	(333)	(12)
Cash used by financing activities:
Long-term debt payments, including current portion	(1)	(1)
(Decrease) increase in notes payable	(321)	9
Payments on capital lease and other financing obligations	(6)	(6)
Proceeds from exercise of stock options and other stock issuances	187	158
Repurchase of common stock	(1,360)	(804)
Dividends — common and preferred	(320)	(300)
Tax payments for net share settlement of equity awards	(11)	(54)
Cash used by financing activities	(1,832)	(998)
Effect of exchange rate changes on cash and equivalents	(103)	40
Net decrease in cash and equivalents	(967)	(395)
Cash and equivalents, beginning of period	4,249	3,808
CASH AND EQUIVALENTS, END OF PERIOD	3,282	3,413
Supplemental disclosure of cash flow information:
Non-cash additions to property, plant and equipment	110	98
Dividends declared and not paid	$ 318	$ 295

Summary of Significant Accounting Policies

3 Months Ended

Aug. 31, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 1 — Summary of Significant Accounting Policies

Basis of Presentation

The Unaudited Condensed Consolidated Financial Statements include the accounts of NIKE, Inc. and its subsidiaries (the “Company”) and reflect all normal adjustments which are, in the opinion of management, necessary for a fair statement of the results of operations for the interim period. The year-end Condensed Consolidated Balance Sheet data as of May 31, 2018 was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). The interim financial information and notes thereto should be read in conjunction with the Company’s latest Annual Report on Form 10-K. The results of operations for the three months ended August 31, 2018 are not necessarily indicative of results to be expected for the entire year.

Recently Adopted Accounting Standards

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606), that replaces existing revenue recognition guidance. The new standard requires companies to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, Topic 606 requires disclosures of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted this standard using a modified retrospective approach in the first quarter of fiscal 2019 with the cumulative effect of initially applying the new standard recognized in Retained earnings at June 1, 2018. Comparative prior period information has not been adjusted and continues to be reported in accordance with previous revenue recognition guidance in Accounting Standards Codification (ASC) Topic 605 — Revenue Recognition. The Company has applied the new standard to all contracts at adoption.

The Company’s adoption of Topic 606 resulted in a change to the timing of revenue recognition. The satisfaction of the Company’s performance obligation is based upon transfer of control over a product to a customer, which results in sales being recognized upon shipment rather than upon delivery for certain wholesale transactions and substantially all digital commerce sales. 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. This resulted in a cumulative effect adjustment, which increased Retained earnings by $23 million at June 1, 2018. The adoption of Topic 606 did not have a material effect on the Unaudited Condensed Consolidated Statements of Income in the first quarter of fiscal 2019.

Additionally, the Company’s reserve balances for returns, post-invoice sales discounts and miscellaneous claims for wholesale transactions were previously reported net of the estimated cost of inventory for product returns, and as a reduction to Accounts receivable, net on the Unaudited Condensed Consolidated Balance Sheets. Under Topic 606, an asset for the estimated cost of inventory expected to be returned is now recognized separately from the liability for sales-related reserves. This resulted in an increase to Accounts receivable, net, an increase in Prepaid expenses and other current assets and an increase in Accrued liabilities on the Unaudited Condensed Consolidated Balance Sheets at August 31, 2018. Sales-related reserves for the Company’s direct to consumer operations continue to be recognized in Accrued liabilities, but are now recorded separately from an asset for the estimated cost of inventory for expected product returns, which is recognized in Prepaid expenses and other current assets. The following table presents the related effect of the adoption of Topic 606 on the Unaudited Condensed Consolidated Balance Sheets at August 31, 2018:



	As of August 31, 2018
(In millions)	As Reported		Effect of Adoption		Balances Without Adoption of Topic 606
Accounts receivable, net	$	4,330	$	662	$	3,668
Prepaid expenses and other current assets	1,675		367		1,308
Total current assets	15,501		1,029		14,472
TOTAL ASSETS	22,483		1,029		21,454
Accrued liabilities	4,174		1,029		3,145
Total current liabilities	6,708		1,029		5,679
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	22,483	$	1,029	$	21,454

Other impacts from the adoption of Topic 606 on the Unaudited Condensed Consolidated Financial Statements were immaterial. Refer to Note 11 — Revenues for further discussion.

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.

In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which expands and refines hedge accounting for both financial and non-financial risk components, aligns the recognition and presentation of the effects of hedging instruments and hedge items in the financial statements, and includes certain targeted improvements to ease the application of current guidance related to the assessment of hedge effectiveness. The Company elected to early adopt the ASU in the first quarter of fiscal 2019 and the adoption of the new guidance did not have a material impact on the Unaudited Condensed Consolidated Financial Statements.

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The updated guidance enhances the reporting model for financial instruments, which includes amendments to address aspects of recognition, measurement, presentation and disclosure. The Company adopted the ASU in the first quarter of fiscal 2019 and the adoption of the new guidance did not have a material impact on the Unaudited Condensed Consolidated Financial Statements.

Recently Issued Accounting Standards

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which replaces existing lease accounting guidance. The new standard is intended to provide enhanced transparency and comparability by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet. The new guidance will require the Company to continue to classify leases as either operating or financing, with classification affecting the pattern of expense recognition in the income statement. In July 2018, the FASB issued ASU No. 2018-11, which provides entities with an additional transition method to adopt Topic 842. Under the new transition method, an entity initially applies the new leases 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 expects to elect this transition method at the adoption date of June 1, 2019. The Company continues to assess the effect the guidance will have on its existing accounting policies and the Consolidated Financial Statements, and expects there will be an increase in assets and liabilities on the Consolidated Balance Sheets at adoption due to the recording of right-of-use assets and corresponding lease liabilities, which is expected to be material. Refer to Note 15 — Commitments and Contingencies of the Annual Report on Form 10-K for the fiscal year ended May 31, 2018 for information about the Company’s lease obligations.

Inventories

3 Months Ended

Aug. 31, 2018

Inventory Disclosure [Abstract]

Inventories

Note 2 — Inventories

Inventory balances of $5,227 million and $5,261 million at August 31, 2018 and May 31, 2018, respectively, were substantially all finished goods.

Accrued Liabilities

3 Months Ended

Aug. 31, 2018

Accrued Liabilities, Current [Abstract]

Accrued Liabilities

Note 3 — Accrued Liabilities

Accrued liabilities included the following:



	As of August 31,		As of May 31,
(In millions)	2018		2018
Sales-related reserves⁽¹⁾	$	1,048	$	20
Compensation and benefits, excluding taxes	675		897
Endorsement compensation	476		425
Dividends payable	318		320
Import and logistics costs	290		268
Taxes other than income taxes payable	262		224
Advertising and marketing	185		140
Fair value of derivatives	102		184
Collateral received from counterparties to hedging instruments	31		23
Other⁽²⁾	787		768
TOTAL ACCRUED LIABILITIES	$	4,174	$	3,269


(1)	Sales-related reserves as of August 31, 2018 reflect the Company’s fiscal 2019 adoption of Topic 606. As of May 31, 2018, Sales-related reserves reflect the Company's prior accounting under Topic 605. Refer to Note 1 — Summary of Significant Accounting Policies for additional information on the adoption of the new standard.


(2)	Other consists of various accrued expenses with no individual item accounting for more than 5% of the total Accrued liabilities balance at August 31, 2018 and May 31, 2018.

Fair Value Measurements

3 Months Ended

Aug. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 4 — Fair Value Measurements

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

The levels of the fair value hierarchy are described below:


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


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

The following tables present information about the Company’s financial assets measured at fair value on a recurring basis as of August 31, 2018 and May 31, 2018, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement.



	As of August 31, 2018
(In millions)	Assets at Fair Value		Cash and Equivalents		Short-term Investments		Other Long-term Assets
Cash	$	436	$	436	$	—	$	—
Level 1:
U.S. Treasury securities	851		50		801		—
Level 2:
Time deposits	1,098		1,081		17		—
U.S. Agency securities	1		—		1		—
Commercial paper and bonds	194		26		168		—
Money market funds	1,689		1,689		—		—
Total Level 2:	2,982		2,796		186		—
Level 3:
Non-marketable preferred stock	11		—		—		11
TOTAL	$	4,280	$	3,282	$	987	$	11



	As of May 31, 2018
(In millions)	Assets at Fair Value		Cash and Equivalents		Short-term Investments		Other Long-term Assets
Cash	$	415	$	415	$	—	$	—
Level 1:
U.S. Treasury securities	1,178		500		678		—
Level 2:
Time deposits	925		907		18		—
U.S. Agency securities	102		100		2		—
Commercial paper and bonds	451		153		298		—
Money market funds	2,174		2,174		—		—
Total Level 2:	3,652		3,334		318		—
Level 3:
Non-marketable preferred stock	11		—		—		11
TOTAL	$	5,256	$	4,249	$	996	$	11

The Company elects to record the gross assets and liabilities of its derivative financial instruments on the Unaudited Condensed Consolidated Balance Sheets. The Company’s derivative financial instruments are subject to master netting arrangements that allow for the offset of assets and liabilities in the event of default or early termination of the contract. Any amounts of cash collateral received 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 Unaudited Condensed Consolidated Statements of Cash Flows. Any amounts of non-cash collateral received, such as securities, are not recorded on the Unaudited Condensed Consolidated Balance Sheets pursuant to U.S. GAAP. For further information related to credit risk, refer to Note 9 — 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 August 31, 2018 and May 31, 2018, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement.



	As of August 31, 2018
	Derivative Assets						Derivative Liabilities
(In millions)	Assets at Fair Value		Other Current Assets		Other Long-term Assets		Liabilities at Fair Value		Accrued Liabilities		Other Long-term Liabilities
Level 2:
Foreign exchange forwards and options⁽¹⁾	$	476	$	347	$	129	$	99	$	99	$	—
Embedded derivatives	9		3		6		12		3		9
TOTAL	$	485	$	350	$	135	$	111	$	102	$	9

(1)

If the foreign exchange derivative instruments had been netted on the Unaudited Condensed Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $99 million as of August 31, 2018. As of that date, the Company had received $31 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 August 31, 2018.



	As of May 31, 2018
	Derivative Assets						Derivative Liabilities
(In millions)	Assets at Fair Value		Other Current Assets		Other Long-term Assets		Liabilities at Fair Value		Accrued Liabilities		Other Long-term Liabilities
Level 2:
Foreign exchange forwards and options⁽¹⁾	$	389	$	237	$	152	$	182	$	182	$	—
Embedded derivatives	11		3		8		8		2		6
TOTAL	$	400	$	240	$	160	$	190	$	184	$	6

(1)

If the foreign exchange derivative instruments had been netted on the Condensed Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $182 million as of May 31, 2018. As of that date, the Company had received $23 million of cash collateral from various counterparties related to these foreign exchange derivative instruments. No amount of collateral was posted on the Company’s derivative liability balance as of May 31, 2018.

Available-for-sale securities comprise investments in U.S. Treasury and Agency securities, time deposits, money market funds, corporate commercial paper and bonds. These securities are valued using market prices in both active markets (Level 1) and less active markets (Level 2). As of August 31, 2018, the Company held $954 million of available-for-sale securities with maturity dates within one year and $33 million with maturity dates over one year and less than five years in Short-term investments on the Unaudited Condensed Consolidated Balance Sheets. The gross realized gains and losses on sales of available-for-sale securities were immaterial for the three months ended August 31, 2018 and 2017. Unrealized gains and losses on available-for-sale securities included in Accumulated other comprehensive income were immaterial as of August 31, 2018 and May 31, 2018. The Company regularly reviews its available-for-sale securities for other-than-temporary impairment. For the three months ended August 31, 2018 and 2017, the Company did not consider any of its securities to be other-than-temporarily impaired and, accordingly, did not recognize any impairment losses.

Included in Interest expense (income), net for the three months ended August 31, 2018 and 2017 was interest income related to the Company’s available-for-sale securities of $20 million and $11 million, respectively.

The Company’s Level 3 assets comprise investments in certain non-marketable preferred stock. These Level 3 investments are an immaterial portion of the Company’s portfolio. Changes in Level 3 investment assets were immaterial during the three months ended August 31, 2018 and the fiscal year ended May 31, 2018.

No transfers among levels within the fair value hierarchy occurred during the three months ended August 31, 2018 and the fiscal year ended May 31, 2018.

For additional information related to the Company’s derivative financial instruments, refer to Note 9 — Risk Management and Derivatives. The carrying amounts of other current financial assets and other current financial liabilities approximate fair value.

As of August 31, 2018 and May 31, 2018, assets or liabilities required to be measured at fair value on a non-recurring basis were immaterial.

Financial Assets and Liabilities Not Recorded at Fair 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 $3,301 million at August 31, 2018 and $3,294 million at May 31, 2018.

For fair value information regarding Notes payable, refer to Note 5 — Short-Term Borrowings and Credit Lines.

- 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

3 Months Ended

Aug. 31, 2018

Debt Disclosure [Abstract]

Short-Term Borrowings and Credit Lines

Note 5 — Short-Term Borrowings and Credit Lines

As of August 31, 2018, the Company had no outstanding borrowings under its $2 billion commercial paper program. As of May 31, 2018, $325 million of commercial paper was outstanding at a weighted average interest rate of 1.77%. These borrowings are included within Notes payable.

Due to the short-term nature of the borrowings, the carrying amounts reflected on the Unaudited Condensed Consolidated Balance Sheets for Notes payable approximate fair value.

Income Taxes

3 Months Ended

Aug. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

Note 6 — Income Taxes

The effective tax rate was 14.0% for the three months ended August 31, 2018 compared to 11.4% for the three months ended August 31, 2017. The Company’s effective tax rate for the current period reflects the impact of the new U.S. statutory rate and implemented provisions of the U.S. Tax Cuts and Jobs Act (the “Tax Act”).

The Company continued its analysis of the Tax Act during the first quarter of fiscal 2019. This resulted in no change to the provisional amounts recorded in fiscal 2018 related to the one-time transition tax on the deemed repatriation of undistributed foreign earnings and the remeasurement of deferred tax assets and liabilities. The Company will continue its analysis through the measurement period taking into consideration additional guidance provided by the U.S. Internal Revenue Service (IRS), U.S. Treasury Department, FASB or other standard setting and regulatory bodies. This may result in material adjustments to the provisional amounts.

As of August 31, 2018, total gross unrecognized tax benefits, excluding related interest and penalties, were $773 million, $526 million of which would affect the Company’s effective tax rate if recognized in future periods. As of May 31, 2018, total gross unrecognized tax benefits, excluding related interest and penalties, were $698 million. The liability for payment of interest and penalties decreased $8 million during the three months ended August 31, 2018. As of August 31, 2018 and May 31, 2018, accrued interest and penalties related to uncertain tax positions were $149 million and $157 million, respectively.

The Company is subject to taxation in the United States, as well as various state and foreign jurisdictions. The Company has closed all U.S. federal income tax matters through fiscal 2014, with the exception of certain transfer pricing adjustments. The Company is currently under U.S. federal income tax examination for fiscal 2015 and 2016.

The Company’s major foreign jurisdictions, China and the Netherlands, have substantially concluded all income tax matters through calendar 2007 and fiscal 2012, respectively. Although the timing of resolution of audits is not certain, the Company evaluates all domestic and foreign audit issues in the aggregate, along with the expiration of applicable statutes of limitations, and estimates that it is reasonably possible the total gross unrecognized tax benefits could decrease by up to approximately $210 million within the next 12 months.

Common Stock and Stock-Based Compensation

3 Months Ended

Aug. 31, 2018

Share-based Compensation [Abstract]

Common Stock and Stock-Based Compensation

Note 7 — Common Stock and Stock-Based Compensation

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.

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 outstanding under the Stock Incentive Plan vest ratably over four years, and for stock option grants, expire ten years from the date of grant.

In addition to the Stock Incentive Plan, the Company gives employees the right to purchase shares at a discount to 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.

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

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



	Three Months Ended August 31,
(In millions)	2018		2017
Stock options⁽¹⁾	$	20	$	33
ESPPs	10		8
Restricted stock	11		9
TOTAL STOCK-BASED COMPENSATION EXPENSE	$	41	$	50


(1)	Expense for stock options includes the expense associated with stock appreciation rights. Accelerated stock option expense is recorded for employees eligible for accelerated stock option vesting upon retirement. Accelerated stock option expense was $1 million and $3 million for the three months ended August 31, 2018 and 2017, respectively.

As of August 31, 2018, the Company had $187 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 2.1 years.

The weighted average fair value per share of the options granted during the three months ended August 31, 2018 and 2017, computed as of the grant date using the Black-Scholes pricing model, was $17.44 and $9.82, respectively. The weighted average assumptions used to estimate these fair values were as follows:



	Three Months Ended August 31,
	2018		2017
Dividend yield	1.0	%	1.2	%
Expected volatility	19.7	%	16.4	%
Weighted average expected life (in years)	6.0		6.0
Risk-free interest rate	2.9	%	2.0	%

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

Earnings Per Share

3 Months Ended

Aug. 31, 2018

Earnings Per Share [Abstract]

Earnings Per Share

Note 8 — 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, to purchase an additional 3.1 million and 46.0 million shares of common stock outstanding for the three months ended August 31, 2018 and 2017, respectively, because the options were anti-dilutive.



	Three Months Ended August 31,
(In millions, except per share data)	2018		2017
Determination of shares:
Weighted average common shares outstanding	1,594.0		1,639.1
Assumed conversion of dilutive stock options and awards	40.4		37.8
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING	1,634.4		1,676.9

Earnings per common share:
Basic	$	0.69	$	0.58
Diluted	$	0.67	$	0.57

Risk Management and Derivatives

3 Months Ended

Aug. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Risk Management and Derivatives

Note 9 — 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, 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 August 31, 2018 are designated as foreign currency cash flow hedges, primarily for Euro/U.S. Dollar, Japanese Yen/U.S. Dollar and British Pound/Euro currency pairs. All derivatives are recognized on the Unaudited Condensed Consolidated Balance Sheets at fair value and classified based on the instrument’s maturity date.

The following table presents the fair values of derivative instruments included within the Unaudited Condensed Consolidated Balance Sheets as of August 31, 2018 and May 31, 2018. Refer to Note 4 — Fair Value Measurements for a description of how the financial instruments in the table below are valued.



	Derivative Assets					Derivative Liabilities
(In millions)	Balance Sheet Location	August 31, 2018		May 31, 2018		Balance Sheet Location	August 31, 2018		May 31, 2018
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	$	207	$	118	Accrued liabilities	$	72	$	156
Foreign exchange forwards and options	Deferred income taxes and other assets	128		152		Deferred income taxes and other liabilities	—		—
Total derivatives formally designated as hedging instruments		335		270			72		156
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	140		119		Accrued liabilities	27		26
Embedded derivatives	Prepaid expenses and other current assets	3		3		Accrued liabilities	3		2
Foreign exchange forwards and options	Deferred income taxes and other assets	1		—		Deferred income taxes and other liabilities	—		—
Embedded derivatives	Deferred income taxes and other assets	6		8		Deferred income taxes and other liabilities	9		6
Total derivatives not designated as hedging instruments		150		130			39		34
TOTAL DERIVATIVES		$	485	$	400		$	111	$	190

The following tables present the amounts in the Unaudited Condensed Consolidated Statements of Income in which the effects of cash flow hedges are recorded and the effects of cash flow hedge activity on these line items for the three months ended August 31, 2018 and 2017:



	Three Months Ended August 31, 2018
(In millions)	Revenues		Cost of Sales			Demand Creation Expense		Other Expense (Income), Net			Interest Expense (Income), Net
Total	$	9,948	$	5,551		$	964	$	53		$	11
Amount of gain (loss) on cash flow hedge activity	5		(44		)	—		(9		)	(2		)



	Three Months Ended August 31, 2017
(In millions)	Revenues		Cost of Sales		Demand Creation Expense		Other Expense (Income), Net		Interest Expense (Income), Net
Total	$	9,070	$	5,108	$	855	$	18	$	16
Amount of gain (loss) on cash flow hedge activity	2		45		—		2		(2		)

The following tables present the amounts affecting the Unaudited Condensed Consolidated Statements of Income for the three months ended August 31, 2018 and 2017:



(In millions)	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives⁽¹⁾					Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income⁽¹⁾
	Three Months Ended August 31,					Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	Three Months Ended August 31,
	2018		2017				2018			2017
Derivatives designated as cash flow hedges:
Foreign exchange forwards and options	$	16	$	55		Revenues	$	5		$	2
Foreign exchange forwards and options	101		(277		)	Cost of sales	(44		)	45
Foreign exchange forwards and options	—		1			Demand creation expense	—			—
Foreign exchange forwards and options	26		(129		)	Other expense (income), net	(9		)	2
Interest rate swaps⁽²⁾	—		—			Interest expense (income), net	(2		)	(2		)
Total designated cash flow hedges	$	143	$	(350	)		$	(50	)	$	47


(1)	For the three months ended August 31, 2018 and 2017, the amounts recorded in Other expense (income), net as a result of hedge ineffectiveness and the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial.


(2)	Gains and losses associated with terminated interest rate swaps, which were previously designated as cash flow hedges and recorded in Accumulated other comprehensive income, will be released through Interest expense (income), net over the term of the issued debt.



	Amount of Gain (Loss) Recognized in Income on Derivatives						Location of Gain (Loss) Recognized in Income on Derivatives
	Three Months Ended August 31,
(In millions)	2018			2017
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	$	114		$	(194	)	Other expense (income), net
Embedded derivatives	(2		)	(1		)	Other expense (income), net

Cash Flow Hedges

All changes in fair value of derivatives designated as cash flow hedges are recorded in Accumulated other comprehensive income until Net income is affected by the variability of cash flows of the hedged transaction. Effective hedge results are classified in the Unaudited Condensed 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 will be recognized immediately in Other expense (income), 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 all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Company will account 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 product 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 $9.9 billion as of August 31, 2018.

As of August 31, 2018, approximately $92 million of deferred net gains (net of tax) on both outstanding and matured derivatives in Accumulated other comprehensive income 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 August 31, 2018, the maximum term over which the Company is hedging exposures to the variability of cash flows for its forecasted transactions was 21 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 August 31, 2018.

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 along with the foreign currency translation adjustments on those investments. The Company had no outstanding net investment hedges as of August 31, 2018.

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 Unaudited Condensed Consolidated Balance Sheets and/or embedded derivative contracts. These undesignated instruments are recorded at fair value as a derivative asset or liability on the Unaudited Condensed Consolidated Balance Sheets with their corresponding change in fair value recognized in Other expense (income), 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 $6.9 billion as of August 31, 2018.

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 Unaudited Condensed Consolidated Balance Sheets with their corresponding change in fair value recognized in Other expense (income), net, through the date the foreign currency fluctuations cease to exist.

As of August 31, 2018, the total notional amount of embedded derivatives outstanding was approximately $315 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 August 31, 2018, the Company was in compliance with all credit risk-related contingent features and had no derivative instruments with credit risk-related contingent features in a net liability position. Accordingly, the Company was not required to post any collateral as a result of these contingent features. Further, as of August 31, 2018, the Company had $31 million of cash collateral received from various counterparties to its derivative contracts (refer to Note 4 — Fair Value Measurements). The Company considers the impact of the risk of counterparty default to be immaterial.

Accumulated Other Comprehensive Income

3 Months Ended

Aug. 31, 2018

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

Accumulated Other Comprehensive Income

Note 10 — Accumulated Other Comprehensive Income

The changes in Accumulated other comprehensive income, net of tax, for the three months ended August 31, 2018 were as follows:



(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⁾	(128		)	142		—		4			18
Reclassifications to net income of previously deferred (gains) losses⁽³⁾	—			51		—		(7		)	44
Total other comprehensive income (loss)	(128		)	193		—		(3		)	62
Balance at August 31, 2018	$	(301	)	$	210	$	115	$	(54	)	$	(30	)


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


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

The changes in Accumulated other comprehensive income, net of tax, for the three months ended August 31, 2017 were as follows:



(In millions)	Foreign Currency Translation Adjustment⁽¹⁾			Cash Flow Hedges			Net Investment Hedges⁽¹⁾		Other			Total
Balance at May 31, 2017	$	(191	)	$	(52	)	$	115	$	(85	)	$	(213	)
Other comprehensive income (loss):
Other comprehensive gains (losses) before reclassifications⁽²⁾	22			(347		)	—		(18		)	(343		)
Reclassifications to net income of previously deferred (gains) losses⁽³⁾	—			(48		)	—		18			(30		)
Total other comprehensive income (loss)	22			(395		)	—		—			(373		)
Balance at August 31, 2017	$	(169	)	$	(447	)	$	115	$	(85	)	$	(586	)


(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 $(19) million, $3 million, $0 million, $0 million and $(16) million, respectively.


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

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



	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income						Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
	Three Months Ended August 31,
(In millions)	2018			2017
Gains (losses) on cash flow hedges:
Foreign exchange forwards and options	$	5		$	2		Revenues
Foreign exchange forwards and options	(44		)	45			Cost of sales
Foreign exchange forwards and options	(9		)	2			Other expense (income), net
Interest rate swaps	(2		)	(2		)	Interest expense (income), net
Total before tax	(50		)	47
Tax (expense) benefit	(1		)	1
(Loss) gain net of tax	(51		)	48
Gains (losses) on other	7			(18		)	Other expense (income), net
Total before tax	7			(18		)
Tax (expense) benefit	—			—
Gain (loss) net of tax	7			(18		)
Total net (loss) gain reclassified for the period	$	(44	)	$	30

Revenues Revenues

3 Months Ended

Aug. 31, 2018

Revenue from Contract with Customer [Abstract]

Revenues

Note 11 — Revenues

Nature of Revenues

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 obligationand 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’re 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 digital commerce customers upon shipment. The transaction price is determined based upon the invoiced sales price, less anticipated sales returns, discounts and miscellaneous claims from customers. Payment terms for wholesale transactions depend on the country of sale or agreement with the customer, and payment is generally required within 90 days or less of shipment or receipt by the wholesale customer. Payment is due at the time of sale for retail store and digital commerce transactions. At August 31, 2018, the Company did not have any contract assets and had an immaterial amount of contract liabilities recorded in Accrued liabilities on the Unaudited Condensed Consolidated Balance Sheets. 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. Licensing revenues for the first quarter of fiscal 2019 were immaterial and are included in the results for the NIKE Brand geographic operating segments, Global Brand Divisions and Converse.

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 Unaudited Condensed 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 as incurred, and are included in Cost of sales.

Disaggregation of Revenues

The following table presents the Company’s revenues disaggregated by reportable operating segment, major product lines and by distribution channel for the three months ended August 31, 2018:



	North America		Europe, Middle East & Africa		Greater China		Asia Pacific & Latin America		Global Brand Divisions		Total NIKE Brand		Converse		Corporate		Total NIKE, Inc.
(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	$	2,555	$	1,642	$	958	$	881	$	—	$	6,036	$	461	$	—	$	6,497
Apparel	1,407		830		380		332		—		2,949		30		—		2,979
Equipment	183		135		41		57		—		416		8		—		424
Other⁽¹⁾	—		—		—		—		16		16		28		4		48
TOTAL REVENUES	$	4,145	$	2,607	$	1,379	$	1,270	$	16	$	9,417	$	527	$	4	$	9,948
Revenues by:
Sales to Wholesale Customers	$	2,829	$	1,916	$	871	$	934	$	—	$	6,550	$	366	$	—	$	6,916
Sales through Direct to Consumer	1,316		691		508		336		—		2,851		133		—		2,984
Other⁽¹⁾	—		—		—		—		16		16		28		4		48
TOTAL REVENUES	$	4,145	$	2,607	$	1,379	$	1,270	$	16	$	9,417	$	527	$	4	$	9,948


(1)	Other revenues for Global Brand Divisions and Converse are primarily attributable to licensing businesses. Corporate revenues primarily consist 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.

Sales-related Reserves

Consideration promised in the Company’s contracts with customers includes a variable amount related to anticipated sales returns, discounts and miscellaneous claims from customers. This variable consideration is estimated and recorded as a reduction to Revenues and as 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 Unaudited Condensed 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. At August 31, 2018, the Company’s sales-related reserve balance, which includes returns, post-invoice sales discounts and miscellaneous claims was 1,048 million and recorded in Accrued liabilities on the Unaudited Condensed Consolidated Balance Sheets. The estimated cost of inventory for expected product returns was $367 million and recorded within Prepaid expenses and other current assets on the Unaudited Condensed Consolidated Balance Sheets. At May 31, 2018, the Company’s sales-related reserve balance, which includes returns, post-invoice sales discounts and miscellaneous claims, was $675 million, net of the estimated cost of inventory for product returns, and recognized as a reduction in Accounts receivable, net on the Condensed Consolidated Balance Sheets.

Operating Segments

3 Months Ended

Aug. 31, 2018

Segment Reporting [Abstract]

Operating Segments

Note 12 — Operating Segments

The Company’s operating segments are evidence of the structure of the Company’s internal organization. The NIKE Brand segments are defined by geographic regions for operations participating in NIKE Brand 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; Greater China; and Asia Pacific & Latin America, and include results for the NIKE, Jordan and Hurley brands.

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 casual sneakers, apparel and accessories.

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

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

The primary financial measure used by the Company to evaluate performance of individual operating segments is earnings before interest and taxes (commonly referred to as “EBIT”), which represents Net income before Interest expense (income), net and Income tax expense in the Unaudited Condensed Consolidated Statements of Income.

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.



	Three Months Ended August 31,
(In millions)	2018			2017
REVENUES
North America	$	4,145		$	3,924
Europe, Middle East & Africa	2,607			2,344
Greater China	1,379			1,108
Asia Pacific & Latin America	1,270			1,189
Global Brand Divisions	16			20
Total NIKE Brand	9,417			8,585
Converse	527			483
Corporate	4			2
TOTAL NIKE, INC. REVENUES	$	9,948		$	9,070
EARNINGS BEFORE INTEREST AND TAXES
North America	$	1,077		$	1,002
Europe, Middle East & Africa	501			451
Greater China	502			394
Asia Pacific & Latin America	323			260
Global Brand Divisions	(818		)	(675		)
Total NIKE Brand	1,585			1,432
Converse	98			89
Corporate	(402		)	(433		)
Total NIKE, Inc. Earnings Before Interest and Taxes	1,281			1,088
Interest expense (income), net	11			16
TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES	$	1,270		$	1,072



	As of August 31,		As of May 31,
(In millions)	2018		2018
ACCOUNTS RECEIVABLE, NET⁽¹⁾
North America	$	1,650	$	1,443
Europe, Middle East & Africa	1,233		870
Greater China	280		101
Asia Pacific & Latin America	753		720
Global Brand Divisions	118		102
Total NIKE Brand	4,034		3,236
Converse	273		240
Corporate	23		22
TOTAL ACCOUNTS RECEIVABLE, NET	$	4,330	$	3,498
INVENTORIES
North America	$	2,214	$	2,270
Europe, Middle East & Africa	1,310		1,433
Greater China	652		580
Asia Pacific & Latin America	714		687
Global Brand Divisions	91		91
Total NIKE Brand	4,981		5,061
Converse	239		268
Corporate	7		(68		)
TOTAL INVENTORIES	$	5,227	$	5,261
PROPERTY, PLANT AND EQUIPMENT, NET
North America	$	835	$	848
Europe, Middle East & Africa	867		849
Greater China	238		256
Asia Pacific & Latin America	324		339
Global Brand Divisions	599		597
Total NIKE Brand	2,863		2,889
Converse	112		115
Corporate	1,512		1,450
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET	$	4,487	$	4,454


(1)	Accounts receivable, net as of August 31, 2018 reflects the Company’s fiscal 2019 adoption of Topic 606. Refer to Note 1 — Summary of Significant Accounting Policies for additional information on the adoption of the new standard.

Commitments and Contingencies

3 Months Ended

Aug. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 13 — Commitments and Contingencies

As of August 31, 2018, the Company had letters of credit outstanding totaling $169 million. These letters of credit were issued primarily for the purchase of inventory and guarantees of the Company’s performance under certain self-insurance and other programs.

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

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Aug. 31, 2018

Accounting Policies [Abstract]

Basis of Presentation

The Unaudited Condensed Consolidated Financial Statements include the accounts of NIKE, Inc. and its subsidiaries (the “Company”) and reflect all normal adjustments which are, in the opinion of management, necessary for a fair statement of the results of operations for the interim period. The year-end Condensed Consolidated Balance Sheet data as of May 31, 2018 was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). The interim financial information and notes thereto should be read in conjunction with the Company’s latest Annual Report on Form 10-K. The results of operations for the three months ended August 31, 2018 are not necessarily indicative of results to be expected for the entire year.

Recently Issued Accounting Standards

Recently Adopted Accounting Standards

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606), that replaces existing revenue recognition guidance. The new standard requires companies to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, Topic 606 requires disclosures of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted this standard using a modified retrospective approach in the first quarter of fiscal 2019 with the cumulative effect of initially applying the new standard recognized in Retained earnings at June 1, 2018. Comparative prior period information has not been adjusted and continues to be reported in accordance with previous revenue recognition guidance in Accounting Standards Codification (ASC) Topic 605 — Revenue Recognition. The Company has applied the new standard to all contracts at adoption.

The Company’s adoption of Topic 606 resulted in a change to the timing of revenue recognition. The satisfaction of the Company’s performance obligation is based upon transfer of control over a product to a customer, which results in sales being recognized upon shipment rather than upon delivery for certain wholesale transactions and substantially all digital commerce sales. 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. This resulted in a cumulative effect adjustment, which increased Retained earnings by $23 million at June 1, 2018. The adoption of Topic 606 did not have a material effect on the Unaudited Condensed Consolidated Statements of Income in the first quarter of fiscal 2019.

Additionally, the Company’s reserve balances for returns, post-invoice sales discounts and miscellaneous claims for wholesale transactions were previously reported net of the estimated cost of inventory for product returns, and as a reduction to Accounts receivable, net on the Unaudited Condensed Consolidated Balance Sheets. Under Topic 606, an asset for the estimated cost of inventory expected to be returned is now recognized separately from the liability for sales-related reserves. This resulted in an increase to Accounts receivable, net, an increase in Prepaid expenses and other current assets and an increase in Accrued liabilities on the Unaudited Condensed Consolidated Balance Sheets at August 31, 2018. Sales-related reserves for the Company’s direct to consumer operations continue to be recognized in Accrued liabilities, but are now recorded separately from an asset for the estimated cost of inventory for expected product returns, which is recognized in Prepaid expenses and other current assets. The following table presents the related effect of the adoption of Topic 606 on the Unaudited Condensed Consolidated Balance Sheets at August 31, 2018:



	As of August 31, 2018
(In millions)	As Reported		Effect of Adoption		Balances Without Adoption of Topic 606
Accounts receivable, net	$	4,330	$	662	$	3,668
Prepaid expenses and other current assets	1,675		367		1,308
Total current assets	15,501		1,029		14,472
TOTAL ASSETS	22,483		1,029		21,454
Accrued liabilities	4,174		1,029		3,145
Total current liabilities	6,708		1,029		5,679
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	22,483	$	1,029	$	21,454

Other impacts from the adoption of Topic 606 on the Unaudited Condensed Consolidated Financial Statements were immaterial. Refer to Note 11 — Revenues for further discussion.

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.

In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which expands and refines hedge accounting for both financial and non-financial risk components, aligns the recognition and presentation of the effects of hedging instruments and hedge items in the financial statements, and includes certain targeted improvements to ease the application of current guidance related to the assessment of hedge effectiveness. The Company elected to early adopt the ASU in the first quarter of fiscal 2019 and the adoption of the new guidance did not have a material impact on the Unaudited Condensed Consolidated Financial Statements.

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The updated guidance enhances the reporting model for financial instruments, which includes amendments to address aspects of recognition, measurement, presentation and disclosure. The Company adopted the ASU in the first quarter of fiscal 2019 and the adoption of the new guidance did not have a material impact on the Unaudited Condensed Consolidated Financial Statements.

Recently Issued Accounting Standards

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which replaces existing lease accounting guidance. The new standard is intended to provide enhanced transparency and comparability by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet. The new guidance will require the Company to continue to classify leases as either operating or financing, with classification affecting the pattern of expense recognition in the income statement. In July 2018, the FASB issued ASU No. 2018-11, which provides entities with an additional transition method to adopt Topic 842. Under the new transition method, an entity initially applies the new leases 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 expects to elect this transition method at the adoption date of June 1, 2019. The Company continues to assess the effect the guidance will have on its existing accounting policies and the Consolidated Financial Statements, and expects there will be an increase in assets and liabilities on the Consolidated Balance Sheets at adoption due to the recording of right-of-use assets and corresponding lease liabilities, which is expected to be material. Refer to Note 15 — Commitments and Contingencies of the Annual Report on Form 10-K for the fiscal year ended May 31, 2018 for information about the Company’s lease obligations.

Revenue Recognition in Accordance with ASC 606

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606), that replaces existing revenue recognition guidance. The new standard requires companies to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, Topic 606 requires disclosures of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted this standard using a modified retrospective approach in the first quarter of fiscal 2019 with the cumulative effect of initially applying the new standard recognized in Retained earnings at June 1, 2018. Comparative prior period information has not been adjusted and continues to be reported in accordance with previous revenue recognition guidance in Accounting Standards Codification (ASC) Topic 605 — Revenue Recognition. The Company has applied the new standard to all contracts at adoption.

The Company’s adoption of Topic 606 resulted in a change to the timing of revenue recognition. The satisfaction of the Company’s performance obligation is based upon transfer of control over a product to a customer, which results in sales being recognized upon shipment rather than upon delivery for certain wholesale transactions and substantially all digital commerce sales. 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. This resulted in a cumulative effect adjustment, which increased Retained earnings by $23 million at June 1, 2018. The adoption of Topic 606 did not have a material effect on the Unaudited Condensed Consolidated Statements of Income in the first quarter of fiscal 2019.

Additionally, the Company’s reserve balances for returns, post-invoice sales discounts and miscellaneous claims for wholesale transactions were previously reported net of the estimated cost of inventory for product returns, and as a reduction to Accounts receivable, net on the Unaudited Condensed Consolidated Balance Sheets. Under Topic 606, an asset for the estimated cost of inventory expected to be returned is now recognized separately from the liability for sales-related reserves. This resulted in an increase to Accounts receivable, net, an increase in Prepaid expenses and other current assets and an increase in Accrued liabilities on the Unaudited Condensed Consolidated Balance Sheets at August 31, 2018. Sales-related reserves for the Company’s direct to consumer operations continue to be recognized in Accrued liabilities, but are now recorded separately from an asset for the estimated cost of inventory for expected product returns, which is recognized in Prepaid expenses and other current assets. The following table presents the related effect of the adoption of Topic 606 on the Unaudited Condensed Consolidated Balance Sheets at August 31, 2018:



	As of August 31, 2018
(In millions)	As Reported		Effect of Adoption		Balances Without Adoption of Topic 606
Accounts receivable, net	$	4,330	$	662	$	3,668
Prepaid expenses and other current assets	1,675		367		1,308
Total current assets	15,501		1,029		14,472
TOTAL ASSETS	22,483		1,029		21,454
Accrued liabilities	4,174		1,029		3,145
Total current liabilities	6,708		1,029		5,679
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	22,483	$	1,029	$	21,454

Other impacts from the adoption of Topic 606 on the Unaudited Condensed Consolidated Financial Statements were immaterial. Refer to Note 11 — Revenues for further discussion.

Nature of Revenues

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 obligationand 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’re 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 digital commerce customers upon shipment. The transaction price is determined based upon the invoiced sales price, less anticipated sales returns, discounts and miscellaneous claims from customers. Payment terms for wholesale transactions depend on the country of sale or agreement with the customer, and payment is generally required within 90 days or less of shipment or receipt by the wholesale customer. Payment is due at the time of sale for retail store and digital commerce transactions. At August 31, 2018, the Company did not have any contract assets and had an immaterial amount of contract liabilities recorded in Accrued liabilities on the Unaudited Condensed Consolidated Balance Sheets. 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. Licensing revenues for the first quarter of fiscal 2019 were immaterial and are included in the results for the NIKE Brand geographic operating segments, Global Brand Divisions and Converse.

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 Unaudited Condensed 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 as incurred, and are included in Cost of sales.

Fair Value Measurements

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

The levels of the fair value hierarchy are described below:


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


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

Hedging Derivatives

The Company elects to record the gross assets and liabilities of its derivative financial instruments on the Unaudited Condensed Consolidated Balance Sheets. The Company’s derivative financial instruments are subject to master netting arrangements that allow for the offset of assets and liabilities in the event of default or early termination of the contract. Any amounts of cash collateral received 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 Unaudited Condensed Consolidated Statements of Cash Flows. Any amounts of non-cash collateral received, such as securities, are not recorded on the Unaudited Condensed Consolidated Balance Sheets pursuant to U.S. GAAP. For further information related to credit risk, refer to Note 9 — Risk Management and Derivatives.

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 along with the foreign currency translation adjustments on those investments.

Cash Flow Hedges

All changes in fair value of derivatives designated as cash flow hedges are recorded in Accumulated other comprehensive income until Net income is affected by the variability of cash flows of the hedged transaction. Effective hedge results are classified in the Unaudited Condensed 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 will be recognized immediately in Other expense (income), 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 all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Company will account 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 product 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.

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.

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 Unaudited Condensed Consolidated Balance Sheets and/or embedded derivative contracts. These undesignated instruments are recorded at fair value as a derivative asset or liability on the Unaudited Condensed Consolidated Balance Sheets with their corresponding change in fair value recognized in Other expense (income), net, together with the re-measurement gain or loss from the hedged balance sheet position and/or embedded derivative contract.

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 Unaudited Condensed Consolidated Balance Sheets with their corresponding change in fair value recognized in Other expense (income), net, through the date the foreign currency fluctuations cease to exist.

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Aug. 31, 2018

Accounting Policies [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The following table presents the related effect of the adoption of Topic 606 on the Unaudited Condensed Consolidated Balance Sheets at August 31, 2018:



	As of August 31, 2018
(In millions)	As Reported		Effect of Adoption		Balances Without Adoption of Topic 606
Accounts receivable, net	$	4,330	$	662	$	3,668
Prepaid expenses and other current assets	1,675		367		1,308
Total current assets	15,501		1,029		14,472
TOTAL ASSETS	22,483		1,029		21,454
Accrued liabilities	4,174		1,029		3,145
Total current liabilities	6,708		1,029		5,679
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	22,483	$	1,029	$	21,454

Accrued Liabilities (Tables)

3 Months Ended

Aug. 31, 2018

Accrued Liabilities, Current [Abstract]

Schedule of Accrued Liabilities

Accrued liabilities included the following:



	As of August 31,		As of May 31,
(In millions)	2018		2018
Sales-related reserves⁽¹⁾	$	1,048	$	20
Compensation and benefits, excluding taxes	675		897
Endorsement compensation	476		425
Dividends payable	318		320
Import and logistics costs	290		268
Taxes other than income taxes payable	262		224
Advertising and marketing	185		140
Fair value of derivatives	102		184
Collateral received from counterparties to hedging instruments	31		23
Other⁽²⁾	787		768
TOTAL ACCRUED LIABILITIES	$	4,174	$	3,269


(1)	Sales-related reserves as of August 31, 2018 reflect the Company’s fiscal 2019 adoption of Topic 606. As of May 31, 2018, Sales-related reserves reflect the Company's prior accounting under Topic 605. Refer to Note 1 — Summary of Significant Accounting Policies for additional information on the adoption of the new standard.


(2)	Other consists of various accrued expenses with no individual item accounting for more than 5% of the total Accrued liabilities balance at August 31, 2018 and May 31, 2018.

Fair Value Measurements (Tables)

3 Months Ended

Aug. 31, 2018

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 August 31, 2018 and May 31, 2018, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement.



	As of August 31, 2018
(In millions)	Assets at Fair Value		Cash and Equivalents		Short-term Investments		Other Long-term Assets
Cash	$	436	$	436	$	—	$	—
Level 1:
U.S. Treasury securities	851		50		801		—
Level 2:
Time deposits	1,098		1,081		17		—
U.S. Agency securities	1		—		1		—
Commercial paper and bonds	194		26		168		—
Money market funds	1,689		1,689		—		—
Total Level 2:	2,982		2,796		186		—
Level 3:
Non-marketable preferred stock	11		—		—		11
TOTAL	$	4,280	$	3,282	$	987	$	11



	As of May 31, 2018
(In millions)	Assets at Fair Value		Cash and Equivalents		Short-term Investments		Other Long-term Assets
Cash	$	415	$	415	$	—	$	—
Level 1:
U.S. Treasury securities	1,178		500		678		—
Level 2:
Time deposits	925		907		18		—
U.S. Agency securities	102		100		2		—
Commercial paper and bonds	451		153		298		—
Money market funds	2,174		2,174		—		—
Total Level 2:	3,652		3,334		318		—
Level 3:
Non-marketable preferred stock	11		—		—		11
TOTAL	$	5,256	$	4,249	$	996	$	11

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 August 31, 2018 and May 31, 2018, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement.



	As of August 31, 2018
	Derivative Assets						Derivative Liabilities
(In millions)	Assets at Fair Value		Other Current Assets		Other Long-term Assets		Liabilities at Fair Value		Accrued Liabilities		Other Long-term Liabilities
Level 2:
Foreign exchange forwards and options⁽¹⁾	$	476	$	347	$	129	$	99	$	99	$	—
Embedded derivatives	9		3		6		12		3		9
TOTAL	$	485	$	350	$	135	$	111	$	102	$	9

(1)

If the foreign exchange derivative instruments had been netted on the Unaudited Condensed Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $99 million as of August 31, 2018. As of that date, the Company had received $31 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 August 31, 2018.



	As of May 31, 2018
	Derivative Assets						Derivative Liabilities
(In millions)	Assets at Fair Value		Other Current Assets		Other Long-term Assets		Liabilities at Fair Value		Accrued Liabilities		Other Long-term Liabilities
Level 2:
Foreign exchange forwards and options⁽¹⁾	$	389	$	237	$	152	$	182	$	182	$	—
Embedded derivatives	11		3		8		8		2		6
TOTAL	$	400	$	240	$	160	$	190	$	184	$	6

(1)

If the foreign exchange derivative instruments had been netted on the Condensed Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $182 million as of May 31, 2018. As of that date, the Company had received $23 million of cash collateral from various counterparties related to these foreign exchange derivative instruments. No amount of collateral was posted on the Company’s derivative liability balance as of May 31, 2018.

The following table presents the fair values of derivative instruments included within the Unaudited Condensed Consolidated Balance Sheets as of August 31, 2018 and May 31, 2018. Refer to Note 4 — Fair Value Measurements for a description of how the financial instruments in the table below are valued.



	Derivative Assets					Derivative Liabilities
(In millions)	Balance Sheet Location	August 31, 2018		May 31, 2018		Balance Sheet Location	August 31, 2018		May 31, 2018
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	$	207	$	118	Accrued liabilities	$	72	$	156
Foreign exchange forwards and options	Deferred income taxes and other assets	128		152		Deferred income taxes and other liabilities	—		—
Total derivatives formally designated as hedging instruments		335		270			72		156
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	140		119		Accrued liabilities	27		26
Embedded derivatives	Prepaid expenses and other current assets	3		3		Accrued liabilities	3		2
Foreign exchange forwards and options	Deferred income taxes and other assets	1		—		Deferred income taxes and other liabilities	—		—
Embedded derivatives	Deferred income taxes and other assets	6		8		Deferred income taxes and other liabilities	9		6
Total derivatives not designated as hedging instruments		150		130			39		34
TOTAL DERIVATIVES		$	485	$	400		$	111	$	190

Common Stock and Stock-Based Compensation (Tables)

3 Months Ended

Aug. 31, 2018

Share-based Compensation [Abstract]

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

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



	Three Months Ended August 31,
(In millions)	2018		2017
Stock options⁽¹⁾	$	20	$	33
ESPPs	10		8
Restricted stock	11		9
TOTAL STOCK-BASED COMPENSATION EXPENSE	$	41	$	50


(1)	Expense for stock options includes the expense associated with stock appreciation rights. Accelerated stock option expense is recorded for employees eligible for accelerated stock option vesting upon retirement. Accelerated stock option expense was $1 million and $3 million for the three months ended August 31, 2018 and 2017, respectively.

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

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



	Three Months Ended August 31,
	2018		2017
Dividend yield	1.0	%	1.2	%
Expected volatility	19.7	%	16.4	%
Weighted average expected life (in years)	6.0		6.0
Risk-free interest rate	2.9	%	2.0	%

Earnings Per Share (Tables)

3 Months Ended

Aug. 31, 2018

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, to purchase an additional 3.1 million and 46.0 million shares of common stock outstanding for the three months ended August 31, 2018 and 2017, respectively, because the options were anti-dilutive.



	Three Months Ended August 31,
(In millions, except per share data)	2018		2017
Determination of shares:
Weighted average common shares outstanding	1,594.0		1,639.1
Assumed conversion of dilutive stock options and awards	40.4		37.8
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING	1,634.4		1,676.9

Earnings per common share:
Basic	$	0.69	$	0.58
Diluted	$	0.67	$	0.57

Risk Management and Derivatives (Tables)

3 Months Ended

Aug. 31, 2018

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 August 31, 2018 and May 31, 2018, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement.



	As of August 31, 2018
	Derivative Assets						Derivative Liabilities
(In millions)	Assets at Fair Value		Other Current Assets		Other Long-term Assets		Liabilities at Fair Value		Accrued Liabilities		Other Long-term Liabilities
Level 2:
Foreign exchange forwards and options⁽¹⁾	$	476	$	347	$	129	$	99	$	99	$	—
Embedded derivatives	9		3		6		12		3		9
TOTAL	$	485	$	350	$	135	$	111	$	102	$	9

(1)

If the foreign exchange derivative instruments had been netted on the Unaudited Condensed Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $99 million as of August 31, 2018. As of that date, the Company had received $31 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 August 31, 2018.



	As of May 31, 2018
	Derivative Assets						Derivative Liabilities
(In millions)	Assets at Fair Value		Other Current Assets		Other Long-term Assets		Liabilities at Fair Value		Accrued Liabilities		Other Long-term Liabilities
Level 2:
Foreign exchange forwards and options⁽¹⁾	$	389	$	237	$	152	$	182	$	182	$	—
Embedded derivatives	11		3		8		8		2		6
TOTAL	$	400	$	240	$	160	$	190	$	184	$	6

(1)

If the foreign exchange derivative instruments had been netted on the Condensed Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $182 million as of May 31, 2018. As of that date, the Company had received $23 million of cash collateral from various counterparties related to these foreign exchange derivative instruments. No amount of collateral was posted on the Company’s derivative liability balance as of May 31, 2018.

The following table presents the fair values of derivative instruments included within the Unaudited Condensed Consolidated Balance Sheets as of August 31, 2018 and May 31, 2018. Refer to Note 4 — Fair Value Measurements for a description of how the financial instruments in the table below are valued.



	Derivative Assets					Derivative Liabilities
(In millions)	Balance Sheet Location	August 31, 2018		May 31, 2018		Balance Sheet Location	August 31, 2018		May 31, 2018
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	$	207	$	118	Accrued liabilities	$	72	$	156
Foreign exchange forwards and options	Deferred income taxes and other assets	128		152		Deferred income taxes and other liabilities	—		—
Total derivatives formally designated as hedging instruments		335		270			72		156
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	140		119		Accrued liabilities	27		26
Embedded derivatives	Prepaid expenses and other current assets	3		3		Accrued liabilities	3		2
Foreign exchange forwards and options	Deferred income taxes and other assets	1		—		Deferred income taxes and other liabilities	—		—
Embedded derivatives	Deferred income taxes and other assets	6		8		Deferred income taxes and other liabilities	9		6
Total derivatives not designated as hedging instruments		150		130			39		34
TOTAL DERIVATIVES		$	485	$	400		$	111	$	190

Schedule Of Derivative Instruments, Gain (Loss) In Statement Of Income

The following tables present the amounts in the Unaudited Condensed Consolidated Statements of Income in which the effects of cash flow hedges are recorded and the effects of cash flow hedge activity on these line items for the three months ended August 31, 2018 and 2017:



	Three Months Ended August 31, 2018
(In millions)	Revenues		Cost of Sales			Demand Creation Expense		Other Expense (Income), Net			Interest Expense (Income), Net
Total	$	9,948	$	5,551		$	964	$	53		$	11
Amount of gain (loss) on cash flow hedge activity	5		(44		)	—		(9		)	(2		)



	Three Months Ended August 31, 2017
(In millions)	Revenues		Cost of Sales		Demand Creation Expense		Other Expense (Income), Net		Interest Expense (Income), Net
Total	$	9,070	$	5,108	$	855	$	18	$	16
Amount of gain (loss) on cash flow hedge activity	2		45		—		2		(2		)

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

The following tables present the amounts affecting the Unaudited Condensed Consolidated Statements of Income for the three months ended August 31, 2018 and 2017:



(In millions)	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives⁽¹⁾					Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income⁽¹⁾
	Three Months Ended August 31,					Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	Three Months Ended August 31,
	2018		2017				2018			2017
Derivatives designated as cash flow hedges:
Foreign exchange forwards and options	$	16	$	55		Revenues	$	5		$	2
Foreign exchange forwards and options	101		(277		)	Cost of sales	(44		)	45
Foreign exchange forwards and options	—		1			Demand creation expense	—			—
Foreign exchange forwards and options	26		(129		)	Other expense (income), net	(9		)	2
Interest rate swaps⁽²⁾	—		—			Interest expense (income), net	(2		)	(2		)
Total designated cash flow hedges	$	143	$	(350	)		$	(50	)	$	47


(1)	For the three months ended August 31, 2018 and 2017, the amounts recorded in Other expense (income), net as a result of hedge ineffectiveness and the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial.


(2)	Gains and losses associated with terminated interest rate swaps, which were previously designated as cash flow hedges and recorded in Accumulated other comprehensive income, will be released through Interest expense (income), net over the term of the issued debt.



	Amount of Gain (Loss) Recognized in Income on Derivatives						Location of Gain (Loss) Recognized in Income on Derivatives
	Three Months Ended August 31,
(In millions)	2018			2017
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	$	114		$	(194	)	Other expense (income), net
Embedded derivatives	(2		)	(1		)	Other expense (income), net

Accumulated Other Comprehensive Income (Tables)

3 Months Ended

Aug. 31, 2018

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

Schedule of Accumulated Other Comprehensive Income

The changes in Accumulated other comprehensive income, net of tax, for the three months ended August 31, 2018 were as follows:



(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⁾	(128		)	142		—		4			18
Reclassifications to net income of previously deferred (gains) losses⁽³⁾	—			51		—		(7		)	44
Total other comprehensive income (loss)	(128		)	193		—		(3		)	62
Balance at August 31, 2018	$	(301	)	$	210	$	115	$	(54	)	$	(30	)


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


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

The changes in Accumulated other comprehensive income, net of tax, for the three months ended August 31, 2017 were as follows:



(In millions)	Foreign Currency Translation Adjustment⁽¹⁾			Cash Flow Hedges			Net Investment Hedges⁽¹⁾		Other			Total
Balance at May 31, 2017	$	(191	)	$	(52	)	$	115	$	(85	)	$	(213	)
Other comprehensive income (loss):
Other comprehensive gains (losses) before reclassifications⁽²⁾	22			(347		)	—		(18		)	(343		)
Reclassifications to net income of previously deferred (gains) losses⁽³⁾	—			(48		)	—		18			(30		)
Total other comprehensive income (loss)	22			(395		)	—		—			(373		)
Balance at August 31, 2017	$	(169	)	$	(447	)	$	115	$	(85	)	$	(586	)


(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 $(19) million, $3 million, $0 million, $0 million and $(16) million, respectively.


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

Reclassification out of Accumulated Other Comprehensive Income

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



	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income						Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
	Three Months Ended August 31,
(In millions)	2018			2017
Gains (losses) on cash flow hedges:
Foreign exchange forwards and options	$	5		$	2		Revenues
Foreign exchange forwards and options	(44		)	45			Cost of sales
Foreign exchange forwards and options	(9		)	2			Other expense (income), net
Interest rate swaps	(2		)	(2		)	Interest expense (income), net
Total before tax	(50		)	47
Tax (expense) benefit	(1		)	1
(Loss) gain net of tax	(51		)	48
Gains (losses) on other	7			(18		)	Other expense (income), net
Total before tax	7			(18		)
Tax (expense) benefit	—			—
Gain (loss) net of tax	7			(18		)
Total net (loss) gain reclassified for the period	$	(44	)	$	30

Revenues (Tables)

3 Months Ended

Aug. 31, 2018

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table presents the Company’s revenues disaggregated by reportable operating segment, major product lines and by distribution channel for the three months ended August 31, 2018:



	North America		Europe, Middle East & Africa		Greater China		Asia Pacific & Latin America		Global Brand Divisions		Total NIKE Brand		Converse		Corporate		Total NIKE, Inc.
(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	$	2,555	$	1,642	$	958	$	881	$	—	$	6,036	$	461	$	—	$	6,497
Apparel	1,407		830		380		332		—		2,949		30		—		2,979
Equipment	183		135		41		57		—		416		8		—		424
Other⁽¹⁾	—		—		—		—		16		16		28		4		48
TOTAL REVENUES	$	4,145	$	2,607	$	1,379	$	1,270	$	16	$	9,417	$	527	$	4	$	9,948
Revenues by:
Sales to Wholesale Customers	$	2,829	$	1,916	$	871	$	934	$	—	$	6,550	$	366	$	—	$	6,916
Sales through Direct to Consumer	1,316		691		508		336		—		2,851		133		—		2,984
Other⁽¹⁾	—		—		—		—		16		16		28		4		48
TOTAL REVENUES	$	4,145	$	2,607	$	1,379	$	1,270	$	16	$	9,417	$	527	$	4	$	9,948


(1)	Other revenues for Global Brand Divisions and Converse are primarily attributable to licensing businesses. Corporate revenues primarily consist 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.

Operating Segments (Tables)

3 Months Ended

Aug. 31, 2018

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment



	Three Months Ended August 31,
(In millions)	2018			2017
REVENUES
North America	$	4,145		$	3,924
Europe, Middle East & Africa	2,607			2,344
Greater China	1,379			1,108
Asia Pacific & Latin America	1,270			1,189
Global Brand Divisions	16			20
Total NIKE Brand	9,417			8,585
Converse	527			483
Corporate	4			2
TOTAL NIKE, INC. REVENUES	$	9,948		$	9,070
EARNINGS BEFORE INTEREST AND TAXES
North America	$	1,077		$	1,002
Europe, Middle East & Africa	501			451
Greater China	502			394
Asia Pacific & Latin America	323			260
Global Brand Divisions	(818		)	(675		)
Total NIKE Brand	1,585			1,432
Converse	98			89
Corporate	(402		)	(433		)
Total NIKE, Inc. Earnings Before Interest and Taxes	1,281			1,088
Interest expense (income), net	11			16
TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES	$	1,270		$	1,072

Reconciliation of Assets from Segment to Consolidated



	As of August 31,		As of May 31,
(In millions)	2018		2018
ACCOUNTS RECEIVABLE, NET⁽¹⁾
North America	$	1,650	$	1,443
Europe, Middle East & Africa	1,233		870
Greater China	280		101
Asia Pacific & Latin America	753		720
Global Brand Divisions	118		102
Total NIKE Brand	4,034		3,236
Converse	273		240
Corporate	23		22
TOTAL ACCOUNTS RECEIVABLE, NET	$	4,330	$	3,498
INVENTORIES
North America	$	2,214	$	2,270
Europe, Middle East & Africa	1,310		1,433
Greater China	652		580
Asia Pacific & Latin America	714		687
Global Brand Divisions	91		91
Total NIKE Brand	4,981		5,061
Converse	239		268
Corporate	7		(68		)
TOTAL INVENTORIES	$	5,227	$	5,261
PROPERTY, PLANT AND EQUIPMENT, NET
North America	$	835	$	848
Europe, Middle East & Africa	867		849
Greater China	238		256
Asia Pacific & Latin America	324		339
Global Brand Divisions	599		597
Total NIKE Brand	2,863		2,889
Converse	112		115
Corporate	1,512		1,450
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET	$	4,487	$	4,454

Summary of Significant Accounting Policies (Detail) - USD ($) $ in Millions	Aug. 31, 2018	Jun. 01, 2018	May 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings	$ 2,494		$ 3,517
Accounts receivable, net	4,330		3,498
Prepaid expenses and other current assets	1,675		1,130
Total current assets	15,501		15,134
TOTAL ASSETS	22,483		22,536
Accrued liabilities	4,174		3,269
Total current liabilities	6,708		6,040
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	22,483		22,536
Deferred income taxes and other assets	2,057		2,509
Deferred income taxes and other liabilities	3,316		$ 3,216
Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings		$ 23
Accounting Standards Update 2016-16
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings		(507)
Prepaid expenses and other current assets		(45)
Deferred income taxes and other assets		(422)
Deferred income taxes and other liabilities		$ 40
Effect of Adoption \| Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable, net	662
Prepaid expenses and other current assets	367
Total current assets	1,029
TOTAL ASSETS	1,029
Accrued liabilities	1,029
Total current liabilities	1,029
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	1,029
Balances Without Adoption of Topic 606
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable, net	3,668
Prepaid expenses and other current assets	1,308
Total current assets	14,472
TOTAL ASSETS	21,454
Accrued liabilities	3,145
Total current liabilities	5,679
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 21,454

Inventories (Detail) - USD ($) $ in Millions	Aug. 31, 2018	May 31, 2018
Inventory Disclosure [Abstract]
Inventory balances (substantially all finished goods)	$ 5,227	$ 5,261

Accrued Liabilities (Detail) - USD ($) $ in Millions	Aug. 31, 2018	May 31, 2018
Accrued Liabilities, Current [Abstract]
Sales-related reserves(1)	$ 1,048	$ 20
Compensation and benefits, excluding taxes	675	897
Endorsement compensation	476	425
Dividends payable	318	320
Import and logistics costs	290	268
Taxes other than income taxes payable	262	224
Advertising and marketing	185	140
Fair value of derivatives	102	184
Collateral received from counterparties to hedging instruments	31	23
Other	787	768
TOTAL ACCRUED LIABILITIES	$ 4,174	$ 3,269

Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Millions	Aug. 31, 2018	May 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Cash	$ 436	$ 415
Assets at Fair Value	4,280	5,256
Cash and Equivalents	3,282	4,249
Short-term Investments	987	996
Other Long-term Assets	11	11
Fair Value Measurements Using Level 1 \| U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets at Fair Value	851	1,178
Cash and Equivalents	50	500
Short-term Investments	801	678
Other Long-term Assets	0	0
Fair Value Measurements Using Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets at Fair Value	2,982	3,652
Cash and Equivalents	2,796	3,334
Short-term Investments	186	318
Other Long-term Assets	0	0
Fair Value Measurements Using Level 2 \| Time deposits
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets at Fair Value	1,098	925
Cash and Equivalents	1,081	907
Short-term Investments	17	18
Other Long-term Assets	0	0
Fair Value Measurements Using Level 2 \| U.S. Agency securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets at Fair Value	1	102
Cash and Equivalents	0	100
Short-term Investments	1	2
Other Long-term Assets	0	0
Fair Value Measurements Using Level 2 \| Commercial paper and bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets at Fair Value	194	451
Cash and Equivalents	26	153
Short-term Investments	168	298
Other Long-term Assets	0	0
Fair Value Measurements Using Level 2 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets at Fair Value	1,689	2,174
Cash and Equivalents	1,689	2,174
Short-term Investments	0	0
Other Long-term Assets	0	0
Fair Value Measurements Using Level 3 \| Non-marketable preferred stock
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets at Fair Value	11	11
Cash and Equivalents	0	0
Short-term Investments	0	0
Other Long-term Assets	$ 11	$ 11

Fair Value Measurements - Derivative Assets and Liabilities at Fair Value (Detail) - USD ($)	Aug. 31, 2018	May 31, 2018
Derivatives, Fair Value [Line Items]
Accrued Liabilities	$ 102,000,000	$ 184,000,000
Collateral received on derivative assets	31,000,000	23,000,000
Fair Value, Measurements, Recurring \| Foreign exchange forwards and options
Derivatives, Fair Value [Line Items]
Reduction in derivative assets if netted	99,000,000	182,000,000
Reduction in derivative liabilities if netted	99,000,000	182,000,000
Fair Value Measurements Using Level 2 \| Fair Value, Measurements, Recurring
Derivatives, Fair Value [Line Items]
Assets at Fair Value	485,000,000	400,000,000
Other Current Assets	350,000,000	240,000,000
Other Long-term Assets	135,000,000	160,000,000
Liabilities at Fair Value	111,000,000	190,000,000
Accrued Liabilities	102,000,000	184,000,000
Other Long-term Liabilities	9,000,000	6,000,000
Fair Value Measurements Using Level 2 \| Fair Value, Measurements, Recurring \| Foreign exchange forwards and options
Derivatives, Fair Value [Line Items]
Assets at Fair Value	476,000,000	389,000,000
Other Current Assets	347,000,000	237,000,000
Other Long-term Assets	129,000,000	152,000,000
Liabilities at Fair Value	99,000,000	182,000,000
Accrued Liabilities	99,000,000	182,000,000
Other Long-term Liabilities	0	0
Fair Value Measurements Using Level 2 \| Fair Value, Measurements, Recurring \| Embedded derivatives
Derivatives, Fair Value [Line Items]
Assets at Fair Value	9,000,000	11,000,000
Other Current Assets	3,000,000	3,000,000
Other Long-term Assets	6,000,000	8,000,000
Liabilities at Fair Value	12,000,000	8,000,000
Accrued Liabilities	3,000,000	2,000,000
Other Long-term Liabilities	9,000,000	6,000,000
Cash and Cash Equivalents \| Foreign exchange forwards and options
Derivatives, Fair Value [Line Items]
Collateral posted on derivative liabilities	0	0
Collateral received on derivative assets	$ 31,000,000	$ 23,000,000

Fair Value Measurements - Additional Information (Detail) - USD ($)	3 Months Ended		12 Months Ended
	Aug. 31, 2018	Aug. 31, 2017	May 31, 2017	May 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Interest income	$ 20,000,000	$ 11,000,000
Fair value transfers between fair value hierarchy levels	0		$ 0
Available-for-sale Securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Available-for-sale securities with maturity dates within one year from purchase date	954,000,000
Available-for-sale securities with maturity dates over one year and less than five years from purchase date	33,000,000
Fair Value Measurements Using Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of long term debt	$ 3,301,000,000			$ 3,294,000,000

Short-Term Borrowings and Credit Lines (Detail) - USD ($)	Aug. 31, 2018	May 31, 2018
Short-term Debt [Line Items]
Notes payable	$ 13,000,000	$ 336,000,000
Commercial paper
Short-term Debt [Line Items]
Notes payable	0	$ 325,000,000
Borrowing capacity	$ 2,000,000,000
Notes payable - interest rate		1.77%

Income Taxes (Detail) - USD ($) $ in Millions	3 Months Ended
Income Taxes (Detail) - USD ($) $ in Millions	Aug. 31, 2018	Aug. 31, 2017	May 31, 2018
Income Tax Disclosure [Abstract]
Effective tax rate on continuing operations (percent)	14.00%	11.40%
Total gross unrecognized tax benefits, excluding related interest and penalties	$ 773		$ 698
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	526
Change in income tax penalties and interest accrued	(8)
Accrued interest and penalties related to uncertain tax positions (excluding federal benefit)	149		$ 157
Estimated decrease in total gross unrecognized tax benefits as a result of resolutions of global tax examinations and expiration of applicable statutes of limitations	$ 210

Common Stock and Stock-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Millions	3 Months Ended
	Aug. 31, 2018 USD ($) $ / shares shares	Aug. 31, 2017 $ / shares
Class A Convertible Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, no par value (in dollars per share) \| $ / shares	$ 0
Common stock, shares authorized (in shares) \| shares	400,000,000
Common stock, conversion basis	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
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, no par value (in dollars per share) \| $ / shares	$ 0
Common stock, shares authorized (in shares) \| shares	2,400,000,000
Shares available for grant (in shares) \| shares	718,000,000
Stock options \| Class B Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options vesting period	4 years
Stock options expiration from the date of grant	10 years
Unrecognized compensation costs from stock options, net of estimated forfeitures \| $	$ 187
Unrecognized compensation costs from stock options, net of estimated forfeitures, to be recognized as operating overhead expense over a weighted average period	2 years 1 month 6 days
Weighted average fair value per share of the options granted (in dollars per share) \| $ / shares	$ 17.44	$ 9.82
Minimum term of market traded options for estimates of expected volatility	1 year
ESPPs \| Class B Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee stock purchase plans, payroll deductions	10.00%
Employee stock purchase plan offering period	6 months
Purchase price of common stock, percent	85.00%
Restricted stock \| Class B Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options vesting period	4 years
Stock options expiration from the date of grant	10 years

Common Stock and Stock-Based Compensation - Total Stock-Based Compensation Expense (Detail) - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2018	Aug. 31, 2017
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 41	$ 50
Class B Common Stock
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	41	50
Class B Common Stock \| Stock options
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	20	33
Accelerated stock option expense	1	3
Class B Common Stock \| ESPPs
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	10	8
Class B Common Stock \| Restricted stock
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 11	$ 9

Common Stock and Stock-Based Compensation - Weighted Average Assumptions Used to Estimate Fair Values (Detail) - Stock options - Class B Common Stock	3 Months Ended
	Aug. 31, 2018	Aug. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	1.00%	1.20%
Expected volatility	19.70%	16.40%
Weighted average expected life	6 years	6 years
Risk-free interest rate	2.90%	2.00%

Earnings Per Share - Additional Information (Detail) - shares shares in Millions	3 Months Ended
	Aug. 31, 2018	Aug. 31, 2017
Earnings Per Share [Abstract]
Anti-dilutive options not included in the computation of diluted earnings per share	3.1	46.0

Earnings Per Share - Reconciliation from Basic to Diluted Earnings Per Share (Detail) - $ / shares shares in Millions	3 Months Ended
	Aug. 31, 2018	Aug. 31, 2017
Determination of shares:
Weighted average common shares outstanding	1,594.0	1,639.1
Assumed conversion of dilutive stock options and awards	40.4	37.8
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING	1,634.4	1,676.9
Earnings per common share:
Basic (in dollars per share)	$ 0.69	$ 0.58
Diluted (in dollars per share)	$ 0.67	$ 0.57

Risk Management and Derivatives - Additional Information (Detail) - USD ($)	3 Months Ended
	Aug. 31, 2018	May 31, 2018
Derivative Instruments and Hedging Activities Disclosure [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	$ 92,000,000
Maximum term over which the Company is hedging exposures to the variability of cash flows for its forecasted and recorded transactions (in months)	21 months
Aggregate fair value of derivative instruments in net liability position	$ 0
Collateral received on derivative assets	31,000,000	$ 23,000,000
Minimum
Derivative Instruments and Hedging Activities Disclosure [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 Disclosure [Line Items]
Additional period for forecasted transaction expected to occur	2 months
Percentage of anticipated exposures hedged (percent)	100.00%
Total notional amount of outstanding derivatives	$ 9,900,000,000
Derivatives designated as cash flow hedges \| Minimum
Derivative Instruments and Hedging Activities Disclosure [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 Disclosure [Line Items]
Typical time period that anticipated exposures are hedged against (in months)	24 months
Embedded derivatives
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Total notional amount of outstanding derivatives	$ 315,000,000
Interest rate swaps \| Derivatives designated as fair value hedges
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Total notional amount of outstanding derivatives	0
Foreign exchange forwards and options \| Cash and Cash Equivalents
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Collateral received on derivative assets	31,000,000	$ 23,000,000
Foreign exchange forwards and options \| Derivatives designated as net investment hedges
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative assets (liabilities), at fair value, net	0
Undesignated derivative instruments
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Total notional amount of outstanding derivatives	$ 6,900,000,000

Risk Management and Derivatives - FV of Derivative Instruments Included within Consolidated Balance Sheet (Detail) - USD ($) $ in Millions	Aug. 31, 2018	May 31, 2018
Derivatives, Fair Value [Line Items]
Derivative Assets	$ 485	$ 400
Derivative Liabilities	111	190
Derivatives formally designated as hedging instruments
Derivatives, Fair Value [Line Items]
Derivative Assets	335	270
Derivative Liabilities	72	156
Derivatives formally designated as hedging instruments \| Foreign exchange forwards and options \| Prepaid expenses and other current assets
Derivatives, Fair Value [Line Items]
Derivative Assets	207	118
Derivatives formally designated as hedging instruments \| Foreign exchange forwards and options \| Deferred income taxes and other assets
Derivatives, Fair Value [Line Items]
Derivative Assets	128	152
Derivatives formally designated as hedging instruments \| Foreign exchange forwards and options \| Accrued liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	72	156
Derivatives formally designated as hedging instruments \| Foreign exchange forwards and options \| Deferred income taxes and other liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	0	0
Derivatives not designated as hedging instruments
Derivatives, Fair Value [Line Items]
Derivative Assets	150	130
Derivative Liabilities	39	34
Derivatives not designated as hedging instruments \| Foreign exchange forwards and options \| Prepaid expenses and other current assets
Derivatives, Fair Value [Line Items]
Derivative Assets	140	119
Derivatives not designated as hedging instruments \| Foreign exchange forwards and options \| Deferred income taxes and other assets
Derivatives, Fair Value [Line Items]
Derivative Assets	1	0
Derivatives not designated as hedging instruments \| Foreign exchange forwards and options \| Accrued liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	27	26
Derivatives not designated as hedging instruments \| Foreign exchange forwards and options \| Deferred income taxes and other liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	0	0
Derivatives not designated as hedging instruments \| Embedded derivatives \| Prepaid expenses and other current assets
Derivatives, Fair Value [Line Items]
Derivative Assets	3	3
Derivatives not designated as hedging instruments \| Embedded derivatives \| Deferred income taxes and other assets
Derivatives, Fair Value [Line Items]
Derivative Assets	6	8
Derivatives not designated as hedging instruments \| Embedded derivatives \| Accrued liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	3	2
Derivatives not designated as hedging instruments \| Embedded derivatives \| Deferred income taxes and other liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	$ 9	$ 6

Risk Management and Derivatives - Effects Of Cash Flow Hedges in Statement of Income (Details) - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2018	Aug. 31, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Revenues	$ 9,948	$ 9,070
Cost of sales	5,551	5,108
Demand creation expense	964	855
Other expense (income), net	53	18
Interest expense (income), net	11	16
Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) on cash flow hedge activity	(50)	47
Foreign exchange forwards and options \| Revenues \| Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) on cash flow hedge activity	5	2
Foreign exchange forwards and options \| Cost of sales \| Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) on cash flow hedge activity	(44)	45
Foreign exchange forwards and options \| Total selling and administrative expense \| Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) on cash flow hedge activity	0	0
Foreign exchange forwards and options \| Other expense (income), net \| Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) on cash flow hedge activity	(9)	2
Interest rate swaps \| Interest expense (income), net \| Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) on cash flow hedge activity	$ (2)	$ (2)

Risk Management and Derivatives - Amounts Affecting Consolidated Statements of Income (Detail) - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2018	Aug. 31, 2017
Derivatives not designated as hedging instruments \| Foreign exchange forwards and options \| Other expense (income), net
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income on Derivatives	$ 114	$ (194)
Derivatives not designated as hedging instruments \| Embedded derivatives \| Other expense (income), net
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income on Derivatives	(2)	(1)
Derivatives designated as cash flow hedges
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives	143	(350)
Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income	(50)	47
Derivatives designated as cash flow hedges \| Foreign exchange forwards and options \| Revenues
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives	16	55
Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income	5	2
Derivatives designated as cash flow hedges \| Foreign exchange forwards and options \| Cost of sales
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives	101	(277)
Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income	(44)	45
Derivatives designated as cash flow hedges \| Foreign exchange forwards and options \| Total selling and administrative expense
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives	0	1
Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income	0	0
Derivatives designated as cash flow hedges \| Foreign exchange forwards and options \| Other expense (income), net
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives	26	(129)
Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income	(9)	2
Derivatives designated as cash flow hedges \| Interest rate swaps \| Interest expense (income), net
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives	0	0
Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income	$ (2)	$ (2)

Accumulated Other Comprehensive Income - Changes in AOCI (Detail) - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2018	Aug. 31, 2017
AOCI Including Portion Attributable to Noncontrolling, Net of Tax [Roll Forward]
Beginning balance	$ 9,812
Other comprehensive income (loss):
Other comprehensive (losses) gains before reclassifications, net of tax	18	$ (343)
Reclassifications to net income of previously deferred losses (gains), net of tax	44	(30)
Total other comprehensive income (loss), net of tax	62	(373)
Ending balance	8,992
Other comprehensive income, before reclassification, tax benefit (expense)	(1)	(16)
Reclassification from AOCI, Current Period, Tax	1	(1)
Foreign Currency Translation Adjustment
AOCI Including Portion Attributable to Noncontrolling, Net of Tax [Roll Forward]
Beginning balance	(173)	(191)
Other comprehensive income (loss):
Other comprehensive (losses) gains before reclassifications, net of tax	(128)	22
Reclassifications to net income of previously deferred losses (gains), net of tax	0	0
Total other comprehensive income (loss), net of tax	(128)	22
Ending balance	(301)	(169)
Other comprehensive income, before reclassification, tax benefit (expense)	0	(19)
Reclassification from AOCI, Current Period, Tax	0	0
Cash Flow Hedges
AOCI Including Portion Attributable to Noncontrolling, Net of Tax [Roll Forward]
Beginning balance	17	(52)
Other comprehensive income (loss):
Other comprehensive (losses) gains before reclassifications, net of tax	142	(347)
Reclassifications to net income of previously deferred losses (gains), net of tax	51	(48)
Total other comprehensive income (loss), net of tax	193	(395)
Ending balance	210	(447)
Other comprehensive income, before reclassification, tax benefit (expense)	(1)	3
Reclassification from AOCI, Current Period, Tax	1	(1)
Net Investment Hedges
AOCI Including Portion Attributable to Noncontrolling, Net of Tax [Roll Forward]
Beginning balance	115	115
Other comprehensive income (loss):
Other comprehensive (losses) gains before reclassifications, net of tax	0	0
Reclassifications to net income of previously deferred losses (gains), net of tax	0	0
Total other comprehensive income (loss), net of tax	0	0
Ending balance	115	115
Other comprehensive income, before reclassification, tax benefit (expense)	0	0
Reclassification from AOCI, Current Period, Tax	0	0
Other
AOCI Including Portion Attributable to Noncontrolling, Net of Tax [Roll Forward]
Beginning balance	(51)	(85)
Other comprehensive income (loss):
Other comprehensive (losses) gains before reclassifications, net of tax	4	(18)
Reclassifications to net income of previously deferred losses (gains), net of tax	(7)	18
Total other comprehensive income (loss), net of tax	(3)	0
Ending balance	(54)	(85)
Other comprehensive income, before reclassification, tax benefit (expense)	0	0
Reclassification from AOCI, Current Period, Tax	0	0
Total
AOCI Including Portion Attributable to Noncontrolling, Net of Tax [Roll Forward]
Beginning balance	(92)	(213)
Other comprehensive income (loss):
Ending balance	$ (30)	$ (586)

Accumulated Other Comprehensive Income - Reclassification out of AOCI (Detail) - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2018	Aug. 31, 2017
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Revenues	$ 9,948	$ 9,070
Cost of sales	(5,551)	(5,108)
Other expense (income), net	(53)	(18)
Interest expense (income), net	(11)	(16)
Income before income taxes	1,270	1,072
Tax (expense) benefit	(178)	(122)
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
NET INCOME	(44)	30
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income \| Gain (losses) on cash flow hedges
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Income before income taxes	(50)	47
Tax (expense) benefit	(1)	1
NET INCOME	(51)	48
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income \| Gain (losses) on cash flow hedges \| Foreign exchange forwards and options
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Revenues	5	2
Cost of sales	(44)	45
Other expense (income), net	(9)	2
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income \| Gain (losses) on cash flow hedges \| Interest rate swaps
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Interest expense (income), net	(2)	(2)
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income \| Other
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Other expense (income), net	7	(18)
Income before income taxes	7	(18)
Tax (expense) benefit	0	0
NET INCOME	$ 7	$ (18)

Revenues (Details) - USD ($) $ in Millions	3 Months Ended
Revenues (Details) - USD ($) $ in Millions	Aug. 31, 2018	May 31, 2018
Disaggregation of Revenue [Line Items]
Revenues	$ 9,948
Allowance for sales discounts returns and miscellaneous claims	1,048	$ 20
Sales to Wholesale Customers
Disaggregation of Revenue [Line Items]
Revenues	6,916
Sales through Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenues	2,984
Other(1)
Disaggregation of Revenue [Line Items]
Revenues	48
Footwear
Disaggregation of Revenue [Line Items]
Revenues	6,497
Apparel
Disaggregation of Revenue [Line Items]
Revenues	2,979
Equipment
Disaggregation of Revenue [Line Items]
Revenues	424
Other(1)
Disaggregation of Revenue [Line Items]
Revenues	48
Operating Segments \| NIKE Brand
Disaggregation of Revenue [Line Items]
Revenues	9,417
Operating Segments \| NIKE Brand \| Sales to Wholesale Customers
Disaggregation of Revenue [Line Items]
Revenues	6,550
Operating Segments \| NIKE Brand \| Sales through Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenues	2,851
Operating Segments \| NIKE Brand \| Other(1)
Disaggregation of Revenue [Line Items]
Revenues	16
Operating Segments \| NIKE Brand \| Footwear
Disaggregation of Revenue [Line Items]
Revenues	6,036
Operating Segments \| NIKE Brand \| Apparel
Disaggregation of Revenue [Line Items]
Revenues	2,949
Operating Segments \| NIKE Brand \| Equipment
Disaggregation of Revenue [Line Items]
Revenues	416
Operating Segments \| NIKE Brand \| Other(1)
Disaggregation of Revenue [Line Items]
Revenues	16
Operating Segments \| Converse
Disaggregation of Revenue [Line Items]
Revenues	527
Operating Segments \| Converse \| Sales to Wholesale Customers
Disaggregation of Revenue [Line Items]
Revenues	366
Operating Segments \| Converse \| Sales through Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenues	133
Operating Segments \| Converse \| Other(1)
Disaggregation of Revenue [Line Items]
Revenues	28
Operating Segments \| Converse \| Footwear
Disaggregation of Revenue [Line Items]
Revenues	461
Operating Segments \| Converse \| Apparel
Disaggregation of Revenue [Line Items]
Revenues	30
Operating Segments \| Converse \| Equipment
Disaggregation of Revenue [Line Items]
Revenues	8
Operating Segments \| Converse \| Other(1)
Disaggregation of Revenue [Line Items]
Revenues	28
Global Brand Divisions
Disaggregation of Revenue [Line Items]
Revenues	16
Global Brand Divisions \| Sales to Wholesale Customers
Disaggregation of Revenue [Line Items]
Revenues	0
Global Brand Divisions \| Sales through Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenues	0
Global Brand Divisions \| Other(1)
Disaggregation of Revenue [Line Items]
Revenues	16
Global Brand Divisions \| Footwear
Disaggregation of Revenue [Line Items]
Revenues	0
Global Brand Divisions \| Apparel
Disaggregation of Revenue [Line Items]
Revenues	0
Global Brand Divisions \| Equipment
Disaggregation of Revenue [Line Items]
Revenues	0
Global Brand Divisions \| Other(1)
Disaggregation of Revenue [Line Items]
Revenues	16
Corporate
Disaggregation of Revenue [Line Items]
Revenues	4
Corporate \| Sales to Wholesale Customers
Disaggregation of Revenue [Line Items]
Revenues	0
Corporate \| Sales through Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenues	0
Corporate \| Other(1)
Disaggregation of Revenue [Line Items]
Revenues	4
Corporate \| Footwear
Disaggregation of Revenue [Line Items]
Revenues	0
Corporate \| Apparel
Disaggregation of Revenue [Line Items]
Revenues	0
Corporate \| Equipment
Disaggregation of Revenue [Line Items]
Revenues	0
Corporate \| Other(1)
Disaggregation of Revenue [Line Items]
Revenues	4
North America \| Operating Segments \| NIKE Brand
Disaggregation of Revenue [Line Items]
Revenues	4,145
North America \| Operating Segments \| NIKE Brand \| Sales to Wholesale Customers
Disaggregation of Revenue [Line Items]
Revenues	2,829
North America \| Operating Segments \| NIKE Brand \| Sales through Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenues	1,316
North America \| Operating Segments \| NIKE Brand \| Other(1)
Disaggregation of Revenue [Line Items]
Revenues	0
North America \| Operating Segments \| NIKE Brand \| Footwear
Disaggregation of Revenue [Line Items]
Revenues	2,555
North America \| Operating Segments \| NIKE Brand \| Apparel
Disaggregation of Revenue [Line Items]
Revenues	1,407
North America \| Operating Segments \| NIKE Brand \| Equipment
Disaggregation of Revenue [Line Items]
Revenues	183
North America \| Operating Segments \| NIKE Brand \| Other(1)
Disaggregation of Revenue [Line Items]
Revenues	0
Europe, Middle East & Africa \| Operating Segments \| NIKE Brand
Disaggregation of Revenue [Line Items]
Revenues	2,607
Europe, Middle East & Africa \| Operating Segments \| NIKE Brand \| Sales to Wholesale Customers
Disaggregation of Revenue [Line Items]
Revenues	1,916
Europe, Middle East & Africa \| Operating Segments \| NIKE Brand \| Sales through Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenues	691
Europe, Middle East & Africa \| Operating Segments \| NIKE Brand \| Other(1)
Disaggregation of Revenue [Line Items]
Revenues	0
Europe, Middle East & Africa \| Operating Segments \| NIKE Brand \| Footwear
Disaggregation of Revenue [Line Items]
Revenues	1,642
Europe, Middle East & Africa \| Operating Segments \| NIKE Brand \| Apparel
Disaggregation of Revenue [Line Items]
Revenues	830
Europe, Middle East & Africa \| Operating Segments \| NIKE Brand \| Equipment
Disaggregation of Revenue [Line Items]
Revenues	135
Europe, Middle East & Africa \| Operating Segments \| NIKE Brand \| Other(1)
Disaggregation of Revenue [Line Items]
Revenues	0
Greater China \| Operating Segments \| NIKE Brand
Disaggregation of Revenue [Line Items]
Revenues	1,379
Greater China \| Operating Segments \| NIKE Brand \| Sales to Wholesale Customers
Disaggregation of Revenue [Line Items]
Revenues	871
Greater China \| Operating Segments \| NIKE Brand \| Sales through Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenues	508
Greater China \| Operating Segments \| NIKE Brand \| Other(1)
Disaggregation of Revenue [Line Items]
Revenues	0
Greater China \| Operating Segments \| NIKE Brand \| Footwear
Disaggregation of Revenue [Line Items]
Revenues	958
Greater China \| Operating Segments \| NIKE Brand \| Apparel
Disaggregation of Revenue [Line Items]
Revenues	380
Greater China \| Operating Segments \| NIKE Brand \| Equipment
Disaggregation of Revenue [Line Items]
Revenues	41
Greater China \| Operating Segments \| NIKE Brand \| Other(1)
Disaggregation of Revenue [Line Items]
Revenues	0
Asia Pacific & Latin America \| Operating Segments \| NIKE Brand
Disaggregation of Revenue [Line Items]
Revenues	1,270
Asia Pacific & Latin America \| Operating Segments \| NIKE Brand \| Sales to Wholesale Customers
Disaggregation of Revenue [Line Items]
Revenues	934
Asia Pacific & Latin America \| Operating Segments \| NIKE Brand \| Sales through Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenues	336
Asia Pacific & Latin America \| Operating Segments \| NIKE Brand \| Other(1)
Disaggregation of Revenue [Line Items]
Revenues	0
Asia Pacific & Latin America \| Operating Segments \| NIKE Brand \| Footwear
Disaggregation of Revenue [Line Items]
Revenues	881
Asia Pacific & Latin America \| Operating Segments \| NIKE Brand \| Apparel
Disaggregation of Revenue [Line Items]
Revenues	332
Asia Pacific & Latin America \| Operating Segments \| NIKE Brand \| Equipment
Disaggregation of Revenue [Line Items]
Revenues	57
Asia Pacific & Latin America \| Operating Segments \| NIKE Brand \| Other(1)
Disaggregation of Revenue [Line Items]
Revenues	0
Accrued liabilities
Disaggregation of Revenue [Line Items]
Allowance for sales discounts returns and miscellaneous claims	1,048
Prepaid expenses and other current assets
Disaggregation of Revenue [Line Items]
Reserve for sales returns	$ 367
Accounts receivable
Disaggregation of Revenue [Line Items]
Reserve for sales returns, net of estimated cost of inventory for product returns		$ 675

Operating Segments - Information by Operating Segments (Detail) - USD ($) $ in Millions	3 Months Ended
	Aug. 31, 2018	Aug. 31, 2017
Segment Reporting, Revenue Reconciling Item [Line Items]
REVENUES	$ 9,948	$ 9,070
EARNINGS BEFORE INTEREST AND TAXES	1,281	1,088
Interest expense (income), net	11	16
Income before income taxes	1,270	1,072
Global Brand Divisions
Segment Reporting, Revenue Reconciling Item [Line Items]
REVENUES	16	20
EARNINGS BEFORE INTEREST AND TAXES	(818)	(675)
Corporate
Segment Reporting, Revenue Reconciling Item [Line Items]
REVENUES	4	2
EARNINGS BEFORE INTEREST AND TAXES	(402)	(433)
Converse \| Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
REVENUES	527	483
EARNINGS BEFORE INTEREST AND TAXES	98	89
NIKE Brand \| Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
REVENUES	9,417	8,585
EARNINGS BEFORE INTEREST AND TAXES	1,585	1,432
North America \| NIKE Brand \| Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
REVENUES	4,145	3,924
EARNINGS BEFORE INTEREST AND TAXES	1,077	1,002
Europe, Middle East & Africa \| NIKE Brand \| Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
REVENUES	2,607	2,344
EARNINGS BEFORE INTEREST AND TAXES	501	451
Greater China \| NIKE Brand \| Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
REVENUES	1,379	1,108
EARNINGS BEFORE INTEREST AND TAXES	502	394
Asia Pacific & Latin America \| NIKE Brand \| Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
REVENUES	1,270	1,189
EARNINGS BEFORE INTEREST AND TAXES	$ 323	$ 260

Operating Segments - Accounts Receivable Net Inventories and Property, Plant and Equipment Net (Detail) - USD ($) $ in Millions	Aug. 31, 2018	May 31, 2018
Segment Reporting, Asset Reconciling Item [Line Items]
Accounts receivable, net	$ 4,330	$ 3,498
Inventories	5,227	5,261
Property, plant and equipment, net	4,487	4,454
Global Brand Divisions
Segment Reporting, Asset Reconciling Item [Line Items]
Accounts receivable, net	118	102
Inventories	91	91
Property, plant and equipment, net	599	597
Corporate
Segment Reporting, Asset Reconciling Item [Line Items]
Accounts receivable, net	23	22
Inventories	7	(68)
Property, plant and equipment, net	1,512	1,450
NIKE Brand \| Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Accounts receivable, net	4,034	3,236
Inventories	4,981	5,061
Property, plant and equipment, net	2,863	2,889
Converse \| Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Accounts receivable, net	273	240
Inventories	239	268
Property, plant and equipment, net	112	115
North America \| NIKE Brand \| Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Accounts receivable, net	1,650	1,443
Inventories	2,214	2,270
Property, plant and equipment, net	835	848
Asia Pacific & Latin America \| NIKE Brand \| Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Accounts receivable, net	753	720
Inventories	714	687
Property, plant and equipment, net	324	339
Greater China \| NIKE Brand \| Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Accounts receivable, net	280	101
Inventories	652	580
Property, plant and equipment, net	238	256
Europe, Middle East & Africa \| NIKE Brand \| Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Accounts receivable, net	1,233	870
Inventories	1,310	1,433
Property, plant and equipment, net	$ 867	$ 849

Commitments and Contingencies (Detail) $ in Millions	Aug. 31, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Letters of credit outstanding	$ 169