Nike 2009 Annual Report Download - page 72

NIKE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 8 — Long-Term Debt
Long-term debt, net of unamortized premiums and discounts and swap fair value adjustments, is comprised
of the following:
May 31,
2009 2008
(In millions)
5.375% Corporate Bond, payable July 8, 2009 ............................... $ 25.1 $ 25.5
5.66% Corporate Bond, payable July 23, 2012 ............................... 27.4 26.1
5.4% Corporate Bond, payable August 7, 2012 ............................... 16.2 15.4
4.7% Corporate Bond, payable October 1, 2013 .............................. 50.0 50.0
5.15% Corporate Bonds, payable October 15, 2015 ............................ 111.1 104.5
4.3% Japanese yen note, payable June 26, 2011 .............................. 108.5 99.6
1.5% Japanese yen note, payable February 14, 2012 ........................... 51.7 47.4
2.6% Japanese yen note, maturing August 20, 2001 through November 20, 2020 .... 54.7 54.5
2.0% Japanese yen note, maturing August 20, 2001 through November 20, 2020 .... 24.5 24.4
Total ........................................................ 469.2 447.4
Less current maturities .................................................. 32.0 6.3
$437.2 $441.1
The scheduled maturity of long-term debt in each of the years ending May 31, 2010 through 2014 are
$32.0 million, $6.9 million, $167.1 million, $46.9 million and $56.9 million, at face value, respectively.
The fair value of long-term debt is estimated based upon quoted prices for similar instruments. The fair
value of the Company’s long-term debt, including the current portion, was approximately $456.4 million at
May 31, 2009 and $450.8 million at May 31, 2008.
In fiscal years 2003 and 2004, the Company issued a total of $240 million in medium-term notes of which
$215 million, at face value, were outstanding at May 31, 2009 and 2008. The outstanding notes have coupon
rates that range from 4.70% to 5.66% and maturity dates ranging from July 2009 to October 2015. For each of
these notes, except the $50 million note maturing in October 2013, the Company has entered into interest rate
swap agreements whereby the Company receives fixed interest payments at the same rate as the notes and pays
variable interest payments based on the three-month or six-month LIBOR plus a spread. Each swap has the same
notional amount and maturity date as the corresponding note. At May 31, 2009, the interest rates payable on
these swap agreements ranged from approximately 1.5% to 3.2%.
In June 1996, one of the Company’s Japanese subsidiaries, NIKE Logistics YK, borrowed ¥10.5 billion
(approximately $108.5 million as of May 31, 2009) in a private placement with a maturity of June 26, 2011.
Interest is paid semi-annually. The agreement provides for early retirement of the borrowing.
In July 1999, NIKE Logistics YK assumed a total of ¥13.0 billion in loans as part of its agreement to
purchase a distribution center in Japan, which serves as collateral for the loans. These loans mature in equal
quarterly installments during the period August 20, 2001 through November 20, 2020. Interest is also paid
quarterly. As of May 31, 2009, ¥7.7 billion (approximately $79.2 million) in loans remain outstanding.
In February 2007, NIKE Logistics YK entered into a ¥5.0 billion (approximately $51.7 million as of
May 31, 2009) term loan that replaced certain intercompany borrowings and matures on February 14, 2012. The
interest rate on the loan is approximately 1.5% and interest is paid semi-annually.
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