Nike 2009 Annual Report Download - page 84

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NIKE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The following tables present the amounts affecting the consolidated statement of income for year ended
May 31, 2009:
Amount of Gain
(Loss)
Recognized in
Other Comprehensive
Income on
Derivatives(1)
Amount of Gain (Loss) Reclassified
From Accumulated Other
Comprehensive Income into Income(1)
Derivatives designated under FAS 133
Year Ended May 31,
2009
Location of Gain (Loss) Reclassified
From Accumulated Other
Comprehensive Income
Into Income(1)
Year Ended May 31,
2009
(In millions)
Derivatives designated as cash flow
hedges:
Foreign exchange forwards and
options ................... $106.3 Revenue $ 92.7
Foreign exchange forwards and
options ................... 350.1 Cost of sales (13.5)
Foreign exchange forwards and
options ...................
(0.4)
Selling and
administrative
expense 0.8
Foreign exchange forwards and
options ................... 165.1
Other income
(expense) 67.8
Total designated cash flow hedges . . . $621.1 $147.8
Derivatives designated as net
investment hedges:
Foreign exchange forwards and
options ................... $161.4
Other income
(expense) $ —
(1) For the year ended May 31, 2009, the Company recorded in other (income) expense, net an immaterial
amount of ineffectiveness from cash flow hedges.
Amount of Gain
(Loss) recognized in
Income on
Derivatives
Year Ended May 31,
2009
Location of Gain (Loss) Recognized
in Income on Derivatives
(In millions)
Derivatives designated as fair value hedges:
Interest rate swaps(1) ............................ $ 1.5 Interest income (expense)
Derivatives not designated as hedging instruments under
FAS 133:
Foreign exchange forwards and options ............. $(83.0) Other income (expense)
(1) Substantially all interest rate swap agreements meet the shortcut method requirements under FAS 133;
accordingly, changes in the fair values of the interest rate swap agreements are exactly offset by changes in
the fair value of the underlying long-term debt. Refer to section “Fair Value Hedges” for additional detail.
Refer to Note 5 — Accrued Liabilities for derivative instruments recorded in accrued liabilities, Note 6 — Fair
Value Measurements for a description of how the above financial instruments are valued in accordance with FAS
157, Note 14 — Accumulated Other Comprehensive Income and the Consolidated Statement of Shareholders’
Equity for additional information on changes in other comprehensive income for the year ended May 31, 2009.
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