Cash used by financing activities was $4,835 million for fiscal 2018 compared to $2,148 million for fiscal 2017 . While the Company cannot predict the outcome of its pending legal matters with certainty, the Company does not believe any currently identified claim, proceeding or litigation, either individually or in aggregate, will have a material impact on the Company's results of operations, financial position or cash flows. The bonds are redeemable at the Company's option up to three months prior to the scheduled maturity date for the bonds maturing in 2023 and 2026, and up to six months prior to the scheduled maturity date for the bonds maturing in 2043, 2045 and 2046, at a price equal to the greater of (i) 100% of the aggregate principal amount of the notes to be redeemed or (ii) the sum of the present values of the remaining scheduled payments, plus in each case, accrued and unpaid interest. The Company assessed the materiality of these misstatements on prior period financial statements in accordance with U.S. Securities and Exchange Commission Staff Accounting Bulletin No. These Level 3 investments are an immaterial portion of the Company's portfolio. Any failure of Sojitz America to provide these services or any failure of Sojitz America's banks could disrupt our ability to acquire products from our suppliers and to deliver products to our customers in those markets. A committee of the Board of Directors administers the Stock Incentive Plan. We estimate the combination of the translation of foreign currency-denominated profits from our international businesses and the year-over-year change in foreign currency-related gains and losses included in Other expense (income), net had an unfavorable impact on our Income before income taxes of $110 million for fiscal 2018. Certain contracts provide for contingent payments to endorsers based upon specific achievements in their sports (e.g., winning a championship). However, as competition in our industry has increased, the costs associated with establishing and retaining such sponsorships and other relationships have increased. The increase in Cash used by financing activities was also impacted by increased repurchases of common stock, which resulted in a cash outflow of $4,254 million for fiscal 2018 compared to an outflow of $3,223 million for fiscal 2017 . Such changes have the potential to adversely impact the U.S. economy or certain sectors thereof, our industry and the global demand for our products, and as a result, could have a material adverse effect on our business, financial condition and results of operations. In February 2016, the FASB issued ASU No. There are no differences in the dividend and liquidation preferences or participation rights of the holders of Class A and Class B Common Stock. Consent of PricewaterhouseCoopers LLP, Independent Registered Public Accounting Firm (included within this Annual Report on Form 10-K). We currently license, and expect to continue licensing, certain of our proprietary rights, such as trademarks or copyrighted material, to third parties. Our international operations are also subject to compliance with the U.S. Foreign Corrupt Practices Act, or FCPA, and other anti-bribery laws applicable to our operations. Deferred compensation plan liabilities were $641 million and $569 million at May 31, 2018 and 2017 , respectively, and primarily classified as non-current in Deferred income taxes and other liabilities . Currency-neutral apparel revenue growth was driven by higher revenues in all key categories, most notably Sportswear and, to a lesser extent, Training and Football (Soccer). Sales through our NIKE Direct operations are managed within each geographic operating segment. Chris L. Abston, Vice President and Corporate Controller - Mr. Abston, 55, joined NIKE in 2015 from Wal-Mart Stores, Inc., where he served as Vice President, Global Controls and Governance since February 2015. The following is a reconciliation of the changes in the gross balance of unrecognized tax benefits: Unrecognized tax benefits, beginning of the period, Gross increases related to prior period tax positions, Gross decreases related to prior period tax positions, Gross increases related to current period tax positions, UNRECOGNIZED TAX BENEFITS, END OF THE PERIOD. De-selecting these cookies may result in seeing advertising that is not as relevant to you or you not being able to link effectively with Facebook, Twitter, or other social networks and/or not allowing you to share content on social media. The currency-neutral increase in NIKE Brand apparel revenues for fiscal 2018 was fueled by growth in nearly all key categories, most notably Sportswear, NIKE Basketball and Football (Soccer). A company's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements. However, we have followed a policy of filing patent applications in the United States and select foreign countries on inventions, designs and improvements that we deem valuable. Retail store revenues are recorded at the time of sale and digital commerce revenues are recorded upon delivery to the customer. The table presents principal cash flows and related weighted average interest rates by expected maturity dates. Within the context of these critical accounting policies, we are not currently aware of any reasonably likely events or circumstances that would result in materially different amounts being reported. Risk Factors. (2) Other NIKE entities purchase product directly from third party factories in U.S. For the Company's fair value hedges, which are interest rate swaps used to mitigate the change in fair value of its fixed-rate debt attributable to changes in interest rates, the related cash flows from periodic interest payments are reflected within the Cash provided by operations component of the Consolidated Statements of Cash Flows. The decrease in comparable licensed markets revenues is primarily due to lower revenues in Latin America. On a currency-neutral basis, NIKE Direct revenues increased 18% for fiscal 2017, driven by strong digital commerce sales growth of 30%, the addition of new stores and 7% comparable store sales growth. 1-10635 nike, inc. For fair value information regarding Notes Payable and Long-term debt , refer to Note 7 - Short-Term Borrowings and Credit Lines and Note 8 - Long-Term Debt , respectively. Other expense (income), net changed from $196 million of other income, net for fiscal 2017 to $66 million of other expense, net for fiscal 2018, primarily due to a $287 million net detrimental change in foreign currency conversion gains and losses, including hedges. The currency-neutral apparel revenue growth of 23% for fiscal 2018 was fueled by higher revenues in all key categories, most notably Sportswear and, to a lesser extent, NIKE Basketball, the Jordan Brand and Running. The Company's operating segments are evidence of the structure of the Company's internal organization. Accordingly, our results of operations are likely to fluctuate significantly from period to period. The fair value of derivative contracts is determined using observable market inputs such as the daily market foreign currency rates, forward pricing curves, currency volatilities, currency correlations and interest rates and considers nonperformance risk of the Company and its counterparties. We have entered into substantial operating lease commitments for retail space. We do not hold or issue derivative instruments for trading or speculative purposes. In fiscal 2018 , we purchased 69.7 million shares of NIKE's Class B Common Stock for $4,267 million (an average price of $ 61.25 per share) under the four-year, $12 billion program approved by the Board of Directors in November 2015. These purchases generate a foreign currency exposure for those NIKE entities with a functional currency other than the U.S. Dollar. Although we continue to evaluate the impact, at current rates, we do not anticipate the re-measurement to have a material impact on our results of operations or financial condition. united states securities and exchange commission washington, d.c. 20549 form 10-k (mark one) Íannual report pursuant to section 13 or 15(d) of the securities exchange act of 1934 for the fiscal year ended may 31, 2018 or ‘transition report pursuant to section 13 or 15(d) of the securities exchange act of 1934 for the transition period from to. There are various modeling techniques that can be used in the VaR computation. The allowance for uncollectible accounts receivable was $30 million and $19 million at May 31, 2018 and 2017 , respectively. The actions we take to establish and protect our intellectual property rights may not be adequate to prevent imitation of our products by others. Find PUMA's fastest annual report and our annual reports back to 1998 as well as statements about our quarterly results. Refer to Note 1 - Summary of Significant Accounting Policies for additional information on the adoption of ASU 2018-02 during the third quarter of fiscal 2018. All international NIKE Brand geographies delivered higher revenues for fiscal 2018 as our Consumer Direct Offense delivered innovative products, deep brand connections and compelling retail experiences to consumers through digital platforms and at NIKE-owned and retail partner stores, driving demand for NIKE Brand products. As described below, the implementation of the NIKE Trading Company ("NTC") and our foreign currency adjustment program enhanced our ability to manage our foreign exchange risk by increasing the natural offsets and currency correlation benefits existing within our portfolio of foreign exchange exposures. FOR THE TRANSITION PERIOD FROM                         TO                         . The performance graph above is being furnished solely to accompany this Report pursuant to Item 201(e) of Regulation S-K, is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing. On a currency-neutral basis, revenues for Converse increased 6% for fiscal 2017. *, Form of Non-Statutory Stock Option Agreement for options granted to executives after May 31, 2010 under the Stock Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended February 28, 2018). As of May 31, 2018 , total gross unrecognized tax benefits, excluding related interest and penalties, were $698 million , $478 million of which would affect the Company's effective tax rate if recognized in future periods. 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