The carrying amounts reflected in the Consolidated Balance Sheets for Notes
payable approximate fair value.
The Company purchases through Sojitz America certain NIKE Brand
products it acquires from non-U.S. suppliers. These purchases are for
products sold in certain countries in the Company’s Emerging Markets
geographic operating segment and Canada, excluding products produced
and sold in the same country. Accounts payable to Sojitz America are
generally due up to 60 days after shipment of goods from the foreign port.
The interest rate on such accounts payable is the 60-day London Interbank
Offered Rate (“LIBOR”) as of the beginning of the month of the invoice date,
plus 0.75%.
As of May 31, 2015 and 2014, the Company had no amounts outstanding
under its commercial paper program.
On November 1, 2011, the Company entered into a committed credit facility
agreement with a syndicate of banks which provides for up to $1 billion of
borrowings with the option to increase borrowings to $1.5 billion with lender
approval. Following an extension agreement on September 17, 2013
between the Company and the syndicate of banks, the facility matures
November 1, 2017. Based on the Company’s current long-term senior
unsecured debt ratings of AA- and A1 from Standard and Poor’s Corporation
and Moody’s Investor Services, respectively, the interest rate charged on any
outstanding borrowings would be the prevailing LIBOR plus 0.445%. The
facility fee is 0.055% of the total commitment. Under this committed credit
facility, the Company must maintain, among other things, certain minimum
specified financial ratios with which the Company was in compliance at
May 31, 2015. No amounts were outstanding under this facility as of May 31,
2015 or 2014.