NIKE, Inc.NKE
NIKE, Inc. Fair Value Disclosure
NOTE 4 — FAIR VALUE MEASUREMENTS | ||
The following tables present information about the Company's financial assets measured at fair value on a recurring basis as of May 31, 2026 and 2025, and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement.
| MAY 31, 2026 | |||||||||||
(Dollars in millions) | ASSETS AT FAIR VALUE | CASH AND EQUIVALENTS | SHORT-TERM INVESTMENTS | ||||||||
| Cash | $ | 1,719 | $ | 1,719 | $ | — | |||||
| Level 1: | |||||||||||
| U.S. Treasury securities | 769 | 2 | 767 | ||||||||
| Level 2: | |||||||||||
| Commercial paper and bonds | 690 | 13 | 677 | ||||||||
| Money market funds | 5,601 | 5,601 | — | ||||||||
| Time deposits | 228 | 228 | — | ||||||||
| U.S. Agency securities | 20 | — | 20 | ||||||||
| Total Level 2 | 6,539 | 5,842 | 697 | ||||||||
| TOTAL | $ | 9,027 | $ | 7,563 | $ | 1,464 | |||||
| MAY 31, 2025 | |||||||||||
(Dollars in millions) | ASSETS AT FAIR VALUE | CASH AND EQUIVALENTS | SHORT-TERM INVESTMENTS | ||||||||
| Cash | $ | 1,221 | $ | 1,221 | $ | — | |||||
| Level 1: | |||||||||||
| U.S. Treasury securities | 1,046 | — | 1,046 | ||||||||
| Level 2: | |||||||||||
| Commercial paper and bonds | 675 | 45 | 630 | ||||||||
| Money market funds | 5,902 | 5,902 | — | ||||||||
| Time deposits | 297 | 295 | 2 | ||||||||
| U.S. Agency securities | 10 | 1 | 9 | ||||||||
| Total Level 2 | 6,884 | 6,243 | 641 | ||||||||
| TOTAL | $ | 9,151 | $ | 7,464 | $ | 1,687 | |||||
As of May 31, 2026, the Company held $590 million of available-for-sale debt securities with maturity dates within one year and $874 million with maturity dates over one year and less than five years in Short-term investments on the Consolidated Balance Sheets. The fair value of the Company's available-for-sale debt securities approximates their amortized cost.
Included in Interest (income) expense, net was interest income related to the Company's investment portfolio of $278 million, $404 million and $430 million for the years ended May 31, 2026, 2025 and 2024, respectively.
The Company records the assets and liabilities of its derivative financial instruments on a gross basis on the Consolidated Balance Sheets. The Company's derivative financial instruments are subject to master netting arrangements that allow for the offset of assets and liabilities in the event of default or early termination of the contract. Any amounts of cash collateral received related to these instruments associated with the Company's credit-related contingent features are recorded in Cash and equivalents and Accrued liabilities, the latter of which would further offset against the Company's derivative asset balance. Any amounts of cash collateral posted related to these instruments associated with the Company's credit-related contingent features are recorded in Prepaid expenses and other current assets, which would further offset against the Company's derivative liability balance. Cash collateral received or posted related to the Company's credit-related contingent features is presented in the Cash provided (used) by operations component of the Consolidated Statements of Cash Flows. The Company does not recognize amounts of non-cash collateral received, such as securities, on the Consolidated Balance Sheets. For additional information related to credit risk, refer to Note 12 — Risk Management and Derivatives.
The following tables present information about the Company's derivative assets and liabilities measured at fair value on a recurring basis and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement:
| MAY 31, 2026 | |||||||||||||||||||||||
| DERIVATIVE ASSETS | DERIVATIVE LIABILITIES | ||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
| Level 2: | |||||||||||||||||||||||
Foreign exchange forwards and options(1) | $ | 184 | $ | 140 | $ | 44 | $ | 333 | $ | 271 | $ | 62 | |||||||||||
Interest rate swaps(1) | 6 | — | 6 | 10 | — | 10 | |||||||||||||||||
TOTAL | $ | 190 | $ | 140 | $ | 50 | $ | 343 | $ | 271 | $ | 72 | |||||||||||
(1)If the foreign exchange and interest rate swap derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $175 million as of May 31, 2026. As of that date, the Company posted $119 million cash collateral to various counterparties on the derivative liability balance and no amount of collateral was received from counterparties on the derivative asset balance.
| MAY 31, 2025 | |||||||||||||||||||||||
| DERIVATIVE ASSETS | DERIVATIVE LIABILITIES | ||||||||||||||||||||||
(Dollars in millions) | ASSETS AT FAIR VALUE | OTHER CURRENT ASSETS | OTHER LONG-TERM ASSETS | LIABILITIES AT FAIR VALUE | ACCRUED LIABILITIES | OTHER LONG-TERM LIABILITIES | |||||||||||||||||
| Level 2: | |||||||||||||||||||||||
Foreign exchange forwards and options(1) | $ | 107 | $ | 85 | $ | 22 | $ | 368 | $ | 226 | $ | 142 | |||||||||||
Interest rate swaps(1) | 24 | — | 24 | 3 | — | 3 | |||||||||||||||||
TOTAL | $ | 131 | $ | 85 | $ | 46 | $ | 371 | $ | 226 | $ | 145 | |||||||||||
(1)If the foreign exchange and interest rate swap derivative instruments had been netted on the Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $131 million as of May 31, 2025. As of that date, the Company posted $166 million cash collateral to various counterparties on the derivative liability balance and no amount of collateral was received from counterparties on the derivative asset balance.
For additional information related to the Company's derivative financial instruments, refer to Note 12 — Risk Management and Derivatives. For fair value information regarding Long-term debt, refer to Note 6 — Long-Term Debt.
The carrying amounts of other current financial assets and other current financial liabilities approximate fair value.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Jul 15, 2026 | Showing above |
| 2025 | Jul 17, 2025 | |
| 2024 | Jul 25, 2024 | |
| 2023 | Jul 20, 2023 | |
| 2022 | Jul 21, 2022 | |
| 2021 | Jul 20, 2021 | |
| 2020 | Jul 24, 2020 | |
| 2019 | Jul 23, 2019 | |
| 2018 | Jul 25, 2018 | |
| 2017 | Jul 20, 2017 | |
| 2016 | Jul 21, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.