Nike FS short - PART II 2015(Dollars in millions Foreign...

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PART II Expected Maturity Date Year Ending May 31, (Dollars in millions) 2015 2016 2017 2018 2019 Thereafter Total Fair Value Foreign Exchange Risk Japanese Yen Functional Currency Long-term Japanese Yen debt — Fixed rate Principal payments $ 7 $ 7 $ 7 $ 7 $ 7 $ 7 $ 42 $ 45 Average interest rate 2.4% 2.4% 2.4% 2.4% 2.4% 2.4% 2.4% Interest Rate Risk Japanese Yen Functional Currency Long-term Japanese Yen debt — Fixed rate Principal payments $ 7 $ 7 $ 7 $ 7 $ 7 $ 7 $ 42 $ 45 Average interest rate 2.4% 2.4% 2.4% 2.4% 2.4% 2.4% 2.4% U.S. Dollar Functional Currency Long-term U.S. Dollar debt — Fixed rate swapped to Floating rate Principal payments $ $ 100 $ $ $ $ $ 100 $ 106 Average interest rate 0.0% 0.3% 0.0% 0.0% 0.0% 0.0% 0.3% Long-term U.S. Dollar debt — Fixed rate Principal payments $ 1 $ 1 $ 38 $ 18 $ $ 1,000 $1,058 $ 1,003 Average interest rate 6.4% 6.4% 6.2% 6.8% —% 2.9% 3.1% The fixed interest rate Japanese Yen denominated debt instruments were issued by and are accounted for by one of our Japanese subsidiaries. Accordingly, the monthly translation of these instruments, which varies due to changes in foreign exchange rates, is recognized in Accumulated other comprehensive income upon consolidation of this subsidiary. ITEM 8. Financial Statements and Supplementary Data Management of NIKE, Inc. is responsible for the information and representations contained in this report. The financial statements have been prepared in conformity with the generally accepted accounting principles we considered appropriate in the circumstances and include some amounts based on our best estimates and judgments. Other financial information in this report is consistent with these financial statements. Our accounting systems include controls designed to reasonably assure assets are safeguarded from unauthorized use or disposition and provide for the preparation of financial statements in conformity with generally accepted accounting principles. These systems are supplemented by the selection and training of qualified financial personnel and an organizational structure providing for appropriate segregation of duties. An internal Corporate Audit department reviews the results of its work with the Audit Committee of the Board of Directors, presently consisting of four outside directors. The Audit Committee is responsible for the appointment of the independent registered public accounting firm and reviews with the independent registered public accounting firm, management, and the internal audit staff, the scope and the results of the annual examination, the effectiveness of the accounting control system, and other matters relating to the financial affairs of NIKE as the Audit Committee deems appropriate. The independent registered public accounting firm and the internal auditors have full access to the Committee, with and without the presence of management, to discuss any appropriate matters.
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