Nike 2009 Annual Report Download - page 71

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NIKE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 7 — Short-Term Borrowings and Credit Lines
Notes payable to banks and interest-bearing accounts payable to Sojitz Corporation of America (“Sojitz
America”) as of May 31, 2009 and 2008, are summarized below:
May 31,
2009 2008
Borrowings
Interest
Rate Borrowings
Interest
Rate
(In millions)
Notes payable:
Commercial Paper ......................... $100.0 0.40% $ — —
U.S. operations ............................ 31.2 1.81%(1) 18.6 0.00%(1)
Non-U.S. operations ........................ 211.7 4.15%(1) 159.1 6.80%(1)
$342.9 $177.7
Sojitz America ................................ $ 78.5 1.57% $ 65.9 3.51%
(1) Weighted average interest rate includes non-interest bearing overdrafts.
The carrying amounts reflected in the consolidated balance sheet for notes payable approximate fair value.
The Company purchases through Sojitz America certain athletic footwear, apparel and equipment it acquires
from non-U.S. suppliers. These purchases are for the Company’s operations outside of the United States, the
Europe, Middle East, and Africa Region and Japan. 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, 2009, the Company had $100.0 million outstanding under its commercial paper program at a
weighted average interest rate of 0.40%. No borrowings were outstanding at May 31, 2008.
In December 2006, the Company entered into a $1 billion revolving credit facility with a group of banks.
The facility matures in December 2012. Based on the Company’s current long-term senior unsecured debt ratings
of A+ 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 0.15%. The facility fee is
0.05% of the total commitment. Under this agreement, the Company must maintain, among other things, certain
minimum specified financial ratios with which the Company was in compliance at May 31, 2009. No amounts
were outstanding under this facility as of May 31, 2009 or 2008.
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