UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) Í ANNUAL 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 . Commission File No. 1-10635 NIKE, Inc. (Exact name of Registrant as specified in its charter) OREGON 93-0584541 (State or other jurisdiction of incorporation) (IRS Employer Identification No.) One Bowerman Drive, Beaverton, Oregon 97005-6453 (Address of principal executive offices) (Zip Code) (503) 671-6453 (Registrant’s telephone number, including area code) SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT: Class B Common Stock New York Stock Exchange (Title of each class) (Name of each exchange on which registered) SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT: NONE Indicate by check mark: YES NO • if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Í‘ • if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. ‘Í • whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Í‘ • whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Í‘ • if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. Í • whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. Large accelerated filer Í Accelerated filer ‘ Non-accelerated filer ‘ Smaller reporting company ‘ Emerging growth company ‘ • if an emerging growth company, if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ‘ • whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). ‘Í As of November 30, 2017, the aggregate market values of the Registrant’s Common Stock held by non-affiliates were: Class A $ 4,475,052,736 Class B 78,093,099,655 $82,568,152,391 As of July 20, 2018, the number of shares of the Registrant’s Common Stock outstanding were: Class A 320,065,752 Class B 1,280,488,786 1,600,554,538 DOCUMENTS INCORPORATED BY REFERENCE: Parts of Registrant’s Proxy Statement for the Annual Meeting of Shareholders to be held on September 20, 2018 are incorporated by reference into Part III of this Report. 53 NIKE, INC. ANNUAL REPORT ON FORM 10-K Table of Contents Page PART I 55 ITEM 1. Business .................................................................................................................. 55 General .................................................................................................................... 55 Products .................................................................................................................. 55 Sales and Marketing ................................................................................................. 56 United States Market ................................................................................................ 56 International Markets ................................................................................................ 56 Significant Customer ................................................................................................. 57 Product Research, Design and Development ............................................................. 57 Manufacturing .......................................................................................................... 57 International Operations and Trade ............................................................................ 57 Competition ............................................................................................................. 58 Trademarks and Patents ........................................................................................... 58 Employees ............................................................................................................... 59 Executive Officers of the Registrant ........................................................................... 59 ITEM 1A. Risk Factors ............................................................................................................. 60 ITEM 1B. Unresolved Staff Comments ..................................................................................... 68 ITEM 2. Properties ................................................................................................................. 68 ITEM 3. Legal Proceedings .................................................................................................... 68 ITEM 4. Mine Safety Disclosures ............................................................................................ 68 PART II 69 ITEM 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities ........................................................................ 69 ITEM 6. Selected Financial Data ............................................................................................. 71 ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations ............................................................................................................... 73 ITEM 7A. Quantitative and Qualitative Disclosures about Market Risk ........................................ 90 ITEM 8. Financial Statements and Supplementary Data .......................................................... 91 ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure ................................................................................................................119 ITEM 9A. Controls and Procedures ..........................................................................................119 ITEM 9B. Other Information ......................................................................................................119 PART III 120 (Except for the information set forth under “Executive Officers of the Registrant” in Item 1 above, Part III is incorporated by reference from the Proxy Statement for the NIKE, Inc. 2018 Annual Meeting of Shareholders.) ITEM 10. Directors, Executive Officers and Corporate Governance ............................................120 ITEM 11. Executive Compensation ..........................................................................................120 ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters .................................................................................................120 ITEM 13. Certain Relationships and Related Transactions and Director Independence ...............120 ITEM 14. Principal Accountant Fees and Services ....................................................................120 PART IV 121 ITEM 15. Exhibits and Financial Statement Schedules ..............................................................121 ITEM 16. Form 10-K Summary ................................................................................................125 Signatures ................................................................................................................127 54 PART I PART I ITEM 1. Business General NIKE, Inc. was incorporated in 1967 under the laws of the State of Oregon. As the committees of our Board of Directors, as well as our corporate used in this report, the terms “we,” “us,” “NIKE” and the “Company” refer to governance guidelines and code of ethics; copies of any of these documents NIKE, Inc. and its predecessors, subsidiaries and affiliates, collectively, unless will be provided in print to any shareholder who submits a request in writing to the context indicates otherwise. Our NIKE digital commerce website is NIKE Investor Relations, One Bowerman Drive, Beaverton, Oregon 97005- located at www.nike.com. On our NIKE corporate website, located at 6453. investors.nike.com, we post the following filings as soon as reasonably practicable after they are electronically filed with, or furnished to, the United Our principal business activity is the design, development and worldwide States Securities and Exchange Commission (the “SEC”): our annual report marketing and selling of athletic footwear, apparel, equipment, accessories on Form 10-K, our quarterly reports on Form 10-Q, our current