NIKE, Inc.NKE

NIKE, Inc. Leases Disclosure

10-KFiled Jul 15, 20262 min read
NOTE 17 — LEASES
Lease expense is recognized in Cost of sales or Operating overhead expense within the Consolidated Statements of Income, based on the underlying nature of the leased asset. For the fiscal years ended May 31, 2026, 2025 and 2024, lease expense primarily consisted of operating lease costs of $693 million, $663 million and $618 million, respectively, as well as $453 million, $432 million and $433 million, respectively, primarily related to variable lease costs. As of and for the fiscal years ended May 31, 2026, 2025 and 2024, finance leases were not a material component of the Company's lease portfolio.
The undiscounted cash flows for future maturities of the Company's operating lease liabilities and the reconciliation to the Operating lease liabilities recognized in the Company's Consolidated Balance Sheets are as follows:
(Dollars in millions)
AS OF MAY 31, 2026(1)
Fiscal 2027$564 
Fiscal 2028553 
Fiscal 2029512 
Fiscal 2030456 
Fiscal 2031361 
Thereafter1,146 
Total undiscounted future cash flows related to lease payments$3,592 
Less interest 501 
PRESENT VALUE OF LEASE LIABILITIES$3,091 
(1)Excludes $77 million as of May 31, 2026 of future operating lease payments for lease agreements signed but not yet commenced.
The following table includes supplemental information used to calculate the present value of Operating lease liabilities:
AS OF MAY 31,
20262025
Weighted-average remaining lease term (in years)7.76.6
Weighted-average discount rate3.6 %3.1 %
The following table includes supplemental cash and non-cash information related to operating leases:
YEAR ENDED MAY 31,
(Dollars in millions)
202620252024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$668 $647 $613 
Operating lease right-of-use assets obtained in exchange for operating lease liabilities$849 $607 $458 
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Historical Timeline

Fiscal YearFiled
2026Jul 15, 2026Showing above
2025Jul 17, 2025
2024Jul 25, 2024
2023Jul 20, 2023
2022Jul 21, 2022
2021Jul 20, 2021
2020Jul 24, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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