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PART II
NOTE 14 — Accumulated Other Comprehensive Income
The changes in Accumulated other comprehensive income, net of tax, were as follows:
(In millions)
Foreign
Currency
Translation
Adjustment(1)(2)
Cash Flow
Hedges
Net Investment
Hedges(1)(2) Other Total
Balance at May 31, 2015 $ (31) $ 1,220 $ 115 $ (58) $ 1,246
Other comprehensive gains (losses) before reclassifications(3) (178) (47) — 6 (219)
Reclassifications to net income of previously deferred (gains) losses(4) 2 (710) — (1) (709)
Other comprehensive income (loss) (176) (757) — 5 (928)
Balance at May 31, 2016 $ (207) $ 463 $ 115 $ (53) $ 318
(1) The accumulated foreign currency translation adjustment and net investment hedge gains/losses related to an investment in a foreign subsidiary are reclassified to Net income upon sale or
upon complete or substantially complete liquidation of the respective entity.
(2) Beginning balances have been updated to reflect the proper classification of $20 million of deferred tax balances between Foreign Currency Translation Adjustment and Net Investment
Hedges.
(3) Net of tax benefit (expense) of $0 million, $28 million, $0 million, $(2) million and $26 million, respectively.
(4) Net of tax (benefit) expense of $0 million, $7 million, $0 million, $2 million and $9 million, respectively.
(In millions)
Foreign
Currency
Translation
Adjustment(1)(2)
Cash Flow
Hedges
Net Investment
Hedges(1)(2) Other Total
Balance at May 31, 2014 $ (11) $ 32 $ 115 $ (51) $ 85
Other comprehensive gains (losses) before reclassifications(3) (20) 1,447 — 33 1,460
Reclassifications to net income of previously deferred (gains) losses(4) — (259) — (40) (299)
Other comprehensive income (loss) (20) 1,188 — (7) 1,161
Balance at May 31, 2015 $ (31) $ 1,220 $ 115 $ (58) $ 1,246
(1) The accumulated foreign currency translation adjustment and net investment hedge gains/losses related to an investment in a foreign subsidiary are reclassified to Net income upon sale or
upon complete or substantially complete liquidation of the respective entity.
(2) Beginning and ending balances have been updated to reflect the proper classification of $20 million of deferred tax balances between Foreign Currency Translation Adjustment and Net
Investment Hedges.
(3) Net of tax benefit (expense) of $0 million, $(33) million, $0 million, $0 million and $(33) million, respectively.
(4) Net of tax (benefit) expense of $0 million, $2 million, $0 million, $0 million and $2 million, respectively.
The following table summarizes the reclassifications from Accumulated other comprehensive income to the Consolidated Statements of Income:
Amount of Gain (Loss)
Reclassified from Accumulated
Other Comprehensive Income
into Income Location of Gain (Loss) Reclassified from
Accumulated Other Comprehensive Income
into Income
Year Ended May 31,
(In millions) 2016 2015
Gains (losses) on foreign currency translation adjustment $ (2) $ — Other (income) expense, net
Total before tax (2) —
Tax (expense) benefit — —
Gain (loss) net of tax (2) —
Gains (losses) on cash flow hedges:
Foreign exchange forwards and options (88) (95) Revenues
Foreign exchange forwards and options 586 220 Cost of sales
Foreign exchange forwards and options — — Total selling and administrative expense
Foreign exchange forwards and options 219 136 Other (income) expense, net
Total before tax 717 261
Tax (expense) benefit (7) (2)
Gain (loss) net of tax 710 259
Gains (losses) on other 3 40 Other (income) expense, net
Total before tax 3 40
Tax (expense) benefit (2) —
Gain (loss) net of tax 140
Total net gain (loss) reclassified for the period $ 709 $ 299
Refer to Note 16 — Risk Management and Derivatives for more information on the Company’s risk management program and derivatives.
NIKE, INC. 2016 Annual Report and Notice of Annual Meeting 117
FORM 10-K