NIKE, Inc.NKE

NIKE, Inc. Leases Disclosure

10-KFiled Jul 17, 20252 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, 2025, 2024 and 2023, lease expense primarily consisted of operating lease costs of $663 million, $618 million and $585 million, respectively, as well as $432 million, $433 million and $403 million, respectively, primarily related to variable lease costs. As of and for the fiscal years ended May 31, 2025 and 2024 and 2023, 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, 2025(1)
Fiscal 2026$565 
Fiscal 2027575 
Fiscal 2028487 
Fiscal 2029437 
Fiscal 2030389 
Thereafter885 
Total undiscounted future cash flows related to lease payments$3,338 
Less interest 286 
PRESENT VALUE OF LEASE LIABILITIES$3,052 
(1)Excludes $482 million as of May 31, 2025, 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,
20252024
Weighted-average remaining lease term (in years)6.66.9
Weighted-average discount rate3.1 %2.9 %
The following table includes supplemental cash and non-cash information related to operating leases:
YEAR ENDED MAY 31,
(Dollars in millions)
202520242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$647 $613 $575 
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities$607 $458 $602 

Historical Timeline

Fiscal YearFiled
2025Jul 17, 2025Showing above
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.

Other Available Disclosures

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