NIKE, Inc.

For the period ended Aug 31, 2026. Filed Oct 2, 2026.

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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Aug 31, 2026 · Filed Oct 2, 2026

NKE$39.88+3.3%Stored close · as of Nov 9, 2026

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Contents

Risk Management and Derivatives

NOTE 7 — 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 majority of derivatives outstanding as of August 31, 2026, are designated as foreign currency cash flow hedges, primarily for Euro/U.S. Dollar and Chinese Yuan/U.S. Dollar 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 tables present the fair values of derivative instruments included within the Unaudited Condensed Consolidated Balance Sheets, which are classified within Level 2 of the fair value hierarchy:

	DERIVATIVE ASSETS
BALANCE SHEET LOCATION · AUGUST 31, · MAY 31,
(Dollars in millions) · 2026 · 2026
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	$118		$111
Foreign exchange forwards and options	Deferred income taxes and other assets	53		44
Interest rate swaps	Deferred income taxes and other assets	—		6
Total derivatives formally designated as hedging instruments		171		161
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	Prepaid expenses and other current assets	25		29
Total derivatives not designated as hedging instruments		25		29
TOTAL DERIVATIVE ASSETS		$196		$190
	DERIVATIVE LIABILITIES
BALANCE SHEET LOCATION · AUGUST 31, · MAY 31,
(Dollars in millions)	2026		2026
Derivatives formally designated as hedging instruments:
Foreign exchange forwards and options	Accrued liabilities	$220		$253
Foreign exchange forwards and options	Deferred income taxes and other liabilities	49		62
Interest rate swaps	Deferred income taxes and other liabilities	53		10
Total derivatives formally designated as hedging instruments		322		325
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	Accrued liabilities	20		18
Total derivatives not designated as hedging instruments		20		18
TOTAL DERIVATIVE LIABILITIES		$342		$343

If the foreign exchange and interest rate swap derivative instruments had been netted on the Unaudited Condensed Consolidated Balance Sheets, the asset and liability positions each would have been reduced by $179 million and $175 million as of August 31, 2026 and May 31, 2026, respectively. As of those dates, the Company posted $145 million and $119 million of cash collateral to various counterparties on the derivative liability balance andno amount of collateral was received from counterparties on the derivative asset balance.

The following tables present the amounts affecting the Unaudited Condensed Consolidated Statements of Income:

(Dollars in millions) · AMOUNT OF GAIN (LOSS) RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) ON DERIVATIVES · AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME
THREE MONTHS ENDED AUGUST 31, · LOCATION OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME · THREE MONTHS ENDED AUGUST 31,
2026 · 2025 · 2026 · 2025
Derivatives designated as cash flow hedges:
Foreign exchange forwards and options	$(8)	$43	Revenues	$(4)	$(7)
Foreign exchange forwards and options	27	(153)	Cost of sales	(30)	50
Foreign exchange forwards and options	27	(48)	Other (income) expense, net	(2)	(14)
TOTAL DESIGNATED CASH FLOW HEDGES	$46	$(158)		$(36)	$29

AMOUNT OF GAIN (LOSS) RECOGNIZED IN INCOME ON DERIVATIVES · LOCATION OF GAIN (LOSS)RECOGNIZED IN INCOMEON DERIVATIVES
	THREE MONTHS ENDED AUGUST 31,
(Dollars in millions) · 2026 · 2025
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	$(29)	$17	Other (income) expense, net

CASH FLOW HEDGES

The total notional amount of outstanding foreign currency derivatives designated as cash flow hedges was approximately $15.9 billion and $16.4 billion as of August 31, 2026 and May 31, 2026, respectively. Approximately $101 million of deferred net losses (net of tax) on both outstanding and matured derivatives in Accumulated other comprehensive income (loss) as of August 31, 2026, 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, 2026, the maximum term over which the Company hedges exposures to the variability of cash flows for its forecasted transactions was 32 months.

FAIR VALUE HEDGES

The total notional amount of outstanding interest rate swap contracts designated as fair value hedges was $2.4 billion as of August 31, 2026 and May 31, 2026.

UNDESIGNATED DERIVATIVE INSTRUMENTS

The total notional amount of outstanding undesignated derivative instruments was $5.4 billion and $5.0 billion as of August 31, 2026 and May 31, 2026, respectively.

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