NIKE, Inc.NKE

NIKE, Inc. Debt Disclosure

10-KFiled Jul 20, 20232 min read
NOTE 6 — LONG-TERM DEBT
Long-term debt, net of unamortized premiums, discounts and debt issuance costs, comprises the following: 
BOOK VALUE OUTSTANDING
AS OF MAY 31,
Scheduled Maturity (Dollars in millions)
ORIGINAL PRINCIPALINTEREST RATEINTEREST PAYMENTS20232022
Corporate Term Debt:(1)(2)
May 1, 2023$500 2.25 %Semi-Annually$— $500 
March 27, 20251,000 2.40 %Semi-Annually998 996 
November 1, 20261,000 2.38 %Semi-Annually997 997 
March 27, 20271,000 2.75 %Semi-Annually997 996 
March 27, 20301,500 2.85 %Semi-Annually1,492 1,491 
March 27, 20401,000 3.25 %Semi-Annually987 986 
May 1, 2043500 3.63 %Semi-Annually496 496 
November 1, 20451,000 3.88 %Semi-Annually986 985 
November 1, 2046500 3.38 %Semi-Annually492 492 
March 27, 20501,500 3.38 %Semi-Annually1,482 1,481 
Total8,927 9,420 
Less Current Portion of Long-Term Debt— 500 
TOTAL LONG-TERM DEBT$8,927 $8,920 
(1)These senior unsecured obligations rank equally with the Company's other unsecured and unsubordinated indebtedness.
(2)The bonds are redeemable at the Company's option at a price equal to the greater of (i) 100% of the aggregate principal amount of the notes to be redeemed or (ii) the sum of the present values of the remaining scheduled payments, plus in each case, accrued and unpaid interest. However, the bonds also feature a par call provision, which allows for the bonds to be redeemed at a price equal to 100% of the aggregate principal amount of the notes being redeemed, plus accrued and unpaid interest on or after the Par Call Date, as defined in the respective notes.
The scheduled maturity of Long-term debt in each of the years ending May 31, 2024 through 2028, are $0 million, $1,000 million, $0 million, $2,000 million and $0 million, respectively, at face value.
The Company's Long-term debt is recorded at adjusted cost, net of unamortized premiums, discounts and debt issuance costs. The fair value of long-term debt is estimated based upon quoted prices for similar instruments or quoted prices for identical instruments in inactive markets (Level 2). The fair value of the Company's Long-term debt, including the current portion, was approximately $7,889 million and $8,933 million as of May 31, 2023 and 2022, respectively.

Historical Timeline

Fiscal YearFiled
2023Jul 20, 2023Showing above
2021Jul 20, 2021
2020Jul 24, 2020
2019Jul 23, 2019
2018Jul 25, 2018
2017Jul 20, 2017
2016Jul 21, 2016

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.

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