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Table of Contents NIKE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
In June 1996, one of the Company’s Japanese subsidiaries, NIKE Logistics YK, borrowed ¥10.5 billion (approximately $115.7 million as of May 31,
2010) 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, 2010, ¥7.0 billion (approximately $76.9 million) in loans remain outstanding.
In February 2007, NIKE Logistics YK entered into a ¥5.0 billion (approximately $55.1 million as of May 31, 2010) 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.
Note 9 — Income Taxes
Income before income taxes is as follows:
Year Ended May 31,
2010 2009 2008
(In millions)
Income before income taxes:
United States $ 698.6 $ 845.7 $ 713.0
Foreign 1,818.3 1,110.8 1,789.9
$ 2,516.9 $ 1,956.5 $ 2,502.9
The provision for income taxes is as follows:
Year Ended May 31,
2010 2009 2008
(In millions)
Current:
United States
Federal $200.2 $ 410.1 $ 469.9
State 50.0 46.1 58.4
Foreign 348.5 307.7 391.8
598.7 763.9 920.1
Deferred:
United States
Federal 17.7 (251.4) (273.0)
State (1.1) (7.9) (5.0)
Foreign (5.1) (34.8) (22.6)
11.5 (294.1) (300.6)
$610.2 $ 469.8 $ 619.5
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