Nike 2006 Annual Report Download - page 42

Download and view the complete annual report

Please find page 42 of the 2006 Nike annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 84

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84

Details of other market-sensitive financial instruments and derivative financial instruments not included in
the VaR calculation above are provided in the table below, except the interest rate swaps which are described
below. These instruments include intercompany loans denominated in non-functional currencies, fixed interest
rate Japanese yen denominated debt, fixed interest rate U.S. dollar denominated debt and interest rate swaps. For
debt obligations, the table presents principal cash flows and related weighted average interest rates by expected
maturity dates.
Expected Maturity Date
Year Ended May 31,
2007 2008 2009 2010 2011 Thereafter Total Fair Value
(In millions, except interest rates)
Foreign Exchange Risk
Euro Functional Currency
Intercompany loan — U.S. dollar denominated —
Fixed rate
Principal payments ............................ $ ————— 270.4 $270.4 $270.4
Average interest rate ........................... ————— 5.7% 5.7%
Intercompany loan — British pound denominated —
Fixed rate
Principal payments ............................ $ 86.1 — — — — — $ 86.1 $ 86.1
Average interest rate ........................... 3.9% — — — — — 3.9%
U.S. Dollar Functional Currency
Intercompany loan — Japanese yen denominated —
Variable rate
Principal payments ............................ $ 93.8 — — — — — $ 93.8 $ 93.8
Average interest rate ........................... 0.5% — — — — — 0.5%
Intercompany loan — Japanese yen denominated—Fixed
rate
Principal payments ............................ $180.5 — 35.7 — — — $216.2 $216.2
Average interest rate ........................... 0.6% 0.8% 0.8% — — — 0.6%
Canadian Dollar Functional Currency
Intercompany loan — U.S. Dollar denominated — Fixed
rate
Principal payments ............................ $ 50.0 — — — — — $ 50.0 $ 50.0
Average interest rate ........................... 4.9% 4.9%
Korean Won Functional Currency
Intercompany loan — U.S. Dollar denominated — Fixed
rate
Principal payments ............................ $ 28.0 — — — — — $ 28.0 $ 28.0
Average interest rate ........................... 5.4% — — — — — 5.4%
Japanese Yen Functional Currency
Long-term Japanese yen debt — Fixed rate
Principal payments ............................ $ 6.0 6.0 6.0 6.0 6.0 150.2 $180.2 $192.4
Average interest rate ........................... 3.4% 3.4% 3.5% 3.5% 3.5% 2.5% 2.8%
Interest Rate Risk
Japanese Yen Functional Currency
Long-term Japanese yen debt — Fixed rate
Principal payments ............................ $ 6.0 6.0 6.0 6.0 6.0 150.2 $180.2 $192.4
Average interest rate ........................... 3.4% 3.4% 3.5% 3.5% 3.5% 2.5% 2.8%
U.S. Dollar Functional Currency
Long-term U.S. dollar debt — Fixed rate
Principal payments ............................ $250.0 25.0 — 25.0 — 190.0 $490.0 $481.6
Average interest rate ........................... 5.2% 5.1% 5.1% 5.1% 5.1% 5.1% 5.1%
Intercompany loans and related interest amounts eliminate in consolidation. Intercompany loans are
generally hedged against foreign exchange risk through the use of forward contracts with third parties, as
discussed above.
41