2022 Q2 Form 10-K Financial Statement

#000032018722000038 Filed on July 21, 2022

View on sec.gov

Income Statement

Concept 2022 Q2 2022 2021 Q2
Revenue $12.23B $46.71B $12.34B
YoY Change -0.89% 4.88% 95.53%
Cost Of Revenue $6.731B $25.23B $6.690B
YoY Change 0.61% 2.67% 68.94%
Gross Profit $5.503B $21.48B $5.654B
YoY Change -2.67% 7.6% 140.29%
Gross Profit Margin 44.98% 45.98% 45.8%
Selling, General & Admin $4.035B $14.80B $3.696B
YoY Change 9.17% 13.66% 15.83%
% of Gross Profit 73.32% 68.92% 65.37%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $296.0M $717.0M $221.0M
YoY Change 33.94% -3.63% 6.25%
% of Gross Profit 5.38% 3.34% 3.91%
Operating Expenses $4.035B $14.80B $3.696B
YoY Change 9.17% 13.66% 15.83%
Operating Profit $1.468B $6.675B $1.958B
YoY Change -25.03% -3.78% -333.65%
Interest Expense -$40.00M -$205.0M -$63.00M
YoY Change -36.51% -21.76% -253.66%
% of Operating Profit -2.72% -3.07% -3.22%
Other Income/Expense, Net -$54.00M $181.0M $1.000M
YoY Change -5500.0% -1392.86% -150.0%
Pretax Income $1.374B $6.651B $1.854B
YoY Change -25.89% -0.15% -330.6%
Income Tax -$65.00M $605.0M $345.0M
% Of Pretax Income -4.73% 9.1% 18.61%
Net Earnings $1.439B $6.046B $1.509B
YoY Change -4.64% 5.57% -291.01%
Net Earnings / Revenue 11.76% 12.94% 12.22%
Basic Earnings Per Share $3.83
Diluted Earnings Per Share $901.7K $3.75 $934.0K
COMMON SHARES
Basic Shares Outstanding 1.579B shares
Diluted Shares Outstanding 1.611B shares

Balance Sheet

Concept 2022 Q2 2022 2021 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $13.00B $13.00B $13.48B
YoY Change -3.55% -3.55% 53.36%
Cash & Equivalents $8.574B $8.574B $9.889B
Short-Term Investments $4.423B $4.423B $3.587B
Other Short-Term Assets $2.129B $2.129B $1.498B
YoY Change 42.12% 42.12% -9.38%
Inventory $8.420B $8.420B $6.854B
Prepaid Expenses
Receivables $4.667B $4.667B $4.463B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $28.21B $28.21B $26.29B
YoY Change 7.31% 7.31% 27.9%
LONG-TERM ASSETS
Property, Plant & Equipment $4.791B $7.717B $4.904B
YoY Change -2.3% -3.74% 0.78%
Goodwill $284.0M $242.0M
YoY Change 17.36% 8.52%
Intangibles $545.0M $515.0M
YoY Change 5.83% -0.96%
Long-Term Investments
YoY Change
Other Assets $3.821B $3.821B $2.921B
YoY Change 30.81% 30.81% 25.58%
Total Long-Term Assets $12.11B $12.11B $11.45B
YoY Change 5.76% 5.76% 6.15%
TOTAL ASSETS
Total Short-Term Assets $28.21B $28.21B $26.29B
Total Long-Term Assets $12.11B $12.11B $11.45B
Total Assets $40.32B $40.32B $37.74B
YoY Change 6.84% 6.84% 20.41%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $3.358B $3.358B $2.836B
YoY Change 18.41% 18.41% 26.16%
Accrued Expenses $6.220B $6.243B $6.063B
YoY Change 2.59% 1.15% 16.96%
Deferred Revenue
YoY Change
Short-Term Debt $10.00M $10.00M $2.000M
YoY Change 400.0% 400.0% -99.19%
Long-Term Debt Due $500.0M $500.0M $0.00
YoY Change -100.0%
Total Short-Term Liabilities $10.73B $10.73B $9.674B
YoY Change 10.92% 10.92% 16.78%
LONG-TERM LIABILITIES
Long-Term Debt $8.920B $8.920B $9.413B
YoY Change -5.24% -5.24% 0.07%
Other Long-Term Liabilities $2.777B $2.777B $2.931B
YoY Change -5.25% -5.25% 0.62%
Total Long-Term Liabilities $8.920B $11.70B $9.413B
YoY Change -5.24% -5.24% 0.07%
TOTAL LIABILITIES
Total Short-Term Liabilities $10.73B $10.73B $9.674B
Total Long-Term Liabilities $8.920B $11.70B $9.413B
Total Liabilities $19.65B $25.04B $19.09B
YoY Change 2.95% 0.27% 7.9%
SHAREHOLDERS EQUITY
Retained Earnings $3.476B $3.179B
YoY Change 9.34% -1764.4%
Common Stock $11.48B $9.965B
YoY Change 15.24% 20.07%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $15.28B $15.28B $12.77B
YoY Change
Total Liabilities & Shareholders Equity $40.32B $40.32B $37.74B
YoY Change 6.84% 6.84% 20.41%

Cashflow Statement

Concept 2022 Q2 2022 2021 Q2
OPERATING ACTIVITIES
Net Income $1.439B $6.046B $1.509B
YoY Change -4.64% 5.57% -291.01%
Depreciation, Depletion And Amortization $296.0M $717.0M $221.0M
YoY Change 33.94% -3.63% 6.25%
Cash From Operating Activities $1.151B $5.188B $2.012B
YoY Change -42.79% -22.07% -201300.0%
INVESTING ACTIVITIES
Capital Expenditures -$242.0M $758.0M -$174.0M
YoY Change 39.08% 9.06% -39.79%
Acquisitions
YoY Change
Other Investing Activities $429.0M $19.00M $361.0M
YoY Change 18.84% -111.11% 1800.0%
Cash From Investing Activities $187.0M -$1.524B $187.0M
YoY Change 0.0% -59.89% -169.26%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $4.014B
YoY Change 560.2%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -1.380B -$4.836B -847.0M
YoY Change 62.93% 231.46% -114.6%
NET CHANGE
Cash From Operating Activities 1.151B $5.188B 2.012B
Cash From Investing Activities 187.0M -$1.524B 187.0M
Cash From Financing Activities -1.380B -$4.836B -847.0M
Net Change In Cash -42.00M -$1.315B 1.352B
YoY Change -103.11% -185.33% -75.55%
FREE CASH FLOW
Cash From Operating Activities $1.151B $5.188B $2.012B
Capital Expenditures -$242.0M $758.0M -$174.0M
Free Cash Flow $1.393B $4.430B $2.186B
YoY Change -36.28% -25.7% 659.03%

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MANAGEMENT ESTIMATESThe preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates, including estimates relating to assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Additionally, the extent to which the evolving COVID-19 pandemic impacts the Company's financial statements will depend on a number of factors, including the further spread and duration of COVID-19 and the economic impacts of the pandemic. There remains risk that COVID-19 could have a material, adverse impact on future revenue growth as well as overall profitability
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CY2022 us-gaap Derivatives Methods Of Accounting Hedging Derivatives
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The Company records the assets and liabilities of its derivative financial instruments on a gross basis on the Consolidated Balance Sheets. The Company's derivative financial instruments are subject to master netting arrangements that allow for the offset of assets and liabilities in the event of default or early termination of the contract. Any amounts of cash collateral received related to these instruments associated with the Company's credit-related contingent features are recorded in Cash and equivalents and Accrued liabilities, the latter of which would further offset against the Company's derivative asset balance. Any amounts of cash collateral posted related to these instruments associated with the Company's credit-related contingent features are recorded in Prepaid expenses and other current assets, which would further offset against the Company's derivative liability balance. Cash collateral received or posted related to the Company's credit-related contingent features is presented in the Cash provided by operations component of the Consolidated Statements of Cash Flows. The Company does not recognize amounts of non-cash collateral received, such as securities, on the Consolidated Balance Sheets.<div style="margin-bottom:6pt;margin-top:12pt"><span style="color:#000000;font-family:'Open Sans Condensed',sans-serif;font-size:14pt;font-weight:700;line-height:100%">CASH FLOW HEDGES</span></div><div style="margin-bottom:6pt;margin-top:6pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:8.5pt;font-weight:400;line-height:130%">All changes in fair value of derivatives designated as cash flow hedge instruments are recorded in Accumulated other comprehensive income (loss) until Net income is affected by the variability of cash flows of the hedged transaction. Effective hedge results are classified in the Consolidated Statements of Income in the same manner as the underlying exposure. When it is no longer probable the forecasted hedged transaction will occur in the initially identified time period, hedge accounting is discontinued and the Company accounts for the associated derivative as an undesignated instrument as discussed below. Additionally, the gains and losses associated with derivatives no longer designated as cash flow hedge instruments in Accumulated other comprehensive income (loss) are recognized immediately in Other (income) expense, net, if it is probable the forecasted hedged transaction will not occur by the end of the initially identified time period or within an additional two-month period thereafter. In rare circumstances, the additional period of time may exceed two months due to extenuating circumstances related to the nature of the forecasted transaction that are outside the control or influence of the Company. </span></div><div style="margin-bottom:6pt;margin-top:6pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:8.5pt;font-weight:400;line-height:130%">The purpose of the Company's foreign exchange risk management program is to lessen both the positive and negative effects of currency fluctuations on the Company's consolidated results of operations, financial position and cash flows. Foreign currency exposures the Company may elect to hedge in this manner include product costs, non-functional currency denominated revenues, intercompany revenues, demand creation expenses, investments in U.S. Dollar denominated available-for-sale debt securities and certain other intercompany transactions.</span></div><div style="margin-bottom:6pt;margin-top:6pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:8.5pt;font-weight:400;line-height:130%">Product cost foreign currency exposures are primarily generated through non-functional currency denominated product purchases and the foreign currency adjustment program described below. NIKE entities primarily purchase product in two ways: (1) Certain NIKE entities purchase product from the NIKE Trading Company (NTC), a wholly-owned sourcing hub that buys NIKE branded products from third party factories, predominantly in U.S. Dollars. The NTC, whose functional currency is the U.S. Dollar, then sells the product to NIKE entities in their respective functional currencies. NTC sales to a NIKE entity with a different </span></div><div style="margin-bottom:6pt;margin-top:6pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:8.5pt;font-weight:400;line-height:130%">functional currency result in a foreign currency exposure for the NTC. (2) Other NIKE entities purchase product directly from third party factories in U.S. Dollars. These purchases generate a foreign currency exposure for those NIKE entities with a functional currency other than the U.S. Dollar.</span></div><div style="margin-bottom:6pt;margin-top:6pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:8.5pt;font-weight:400;line-height:130%">The Company operates a foreign currency adjustment program with certain factories. The program is designed to more effectively manage foreign currency risk by assuming certain of the factories' foreign currency exposures, some of which are natural offsets to the Company's existing foreign currency exposures. Under this program, the Company's payments to these factories are adjusted for rate fluctuations in the basket of currencies (“factory currency exposure index”) in which the labor, materials and overhead costs incurred by the factories in the production of NIKE branded products (“factory input costs”) are denominated. For the portion of the indices denominated in the local or functional currency of the factory, the Company may elect to place formally designated cash flow hedges. For all currencies within the indices, excluding the U.S. Dollar and the local or functional currency of the factory, an embedded derivative contract is created upon the factory's acceptance of NIKE's purchase order. Embedded derivative contracts are separated from the related purchase order, as further described within the Embedded Derivatives section below.</span></div>The Company's policy permits the utilization of derivatives to reduce its foreign currency exposures where internal netting or other strategies cannot be effectively employed. Typically, the Company may enter into hedge contracts starting up to 12 to 24 months in advance of the forecasted transaction and may place incremental hedges up to 100% of the exposure by the time the forecasted transaction occurs.FAIR VALUE HEDGESThe Company has, in the past, been exposed to the risk of changes in the fair value of certain fixed-rate debt attributable to changes in interest rates. Derivatives used by the Company to hedge this risk are receive-fixed, pay-variable interest rate swaps. NET INVESTMENT HEDGESThe Company has, in the past, hedged and may, in the future, hedge the risk of variability in foreign currency-denominated net investments in wholly-owned international operations. All changes in fair value of the derivatives designated as net investment hedges are reported in Accumulated other comprehensive income (loss) along with the foreign currency translation adjustments on those investments.
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CY2021 us-gaap Interest Income Expense Nonoperating Net
InterestIncomeExpenseNonoperatingNet
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CY2020 us-gaap Interest Income Expense Nonoperating Net
InterestIncomeExpenseNonoperatingNet
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CY2022Q2 us-gaap Foreign Currency Cash Flow Hedge Gain Loss To Be Reclassified During Next12 Months
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CY2022 us-gaap Maximum Remaining Maturity Of Foreign Currency Derivatives1
MaximumRemainingMaturityOfForeignCurrencyDerivatives1
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CY2022 us-gaap Derivatives Methods Of Accounting Nonhedging Derivatives
DerivativesMethodsOfAccountingNonhedgingDerivatives
UNDESIGNATED DERIVATIVE INSTRUMENTSThe Company may elect to enter into foreign exchange forwards to mitigate the change in fair value of specific assets and liabilities on the Consolidated Balance Sheets and/or embedded derivative contracts. These undesignated instruments are recorded at fair value as a derivative asset or liability on the Consolidated Balance Sheets with their corresponding change in fair value recognized in Other (income) expense, net, together with the remeasurement gain or loss from the hedged balance sheet position and/or embedded derivative contract.
CY2022 us-gaap Derivatives Embedded Derivatives
DerivativesEmbeddedDerivatives
EMBEDDED DERIVATIVESAs part of the foreign currency adjustment program described above, an embedded derivative contract is created upon the factory's acceptance of NIKE's purchase order for currencies within the factory currency exposure indices that are neither the U.S. Dollar nor the local or functional currency of the factory. In addition, embedded derivative contracts are created when the Company enters into certain other contractual agreements which have payments that are indexed to currencies that are not the functional currency of either substantial party to the contracts. Embedded derivative contracts are treated as foreign currency forward contracts that are bifurcated from the related contract and recorded at fair value as a derivative asset or liability on the Consolidated Balance Sheets with their corresponding change in fair value recognized in Other (income) expense, net, through the date the foreign currency fluctuations cease to exist.
CY2022Q2 us-gaap Derivative Net Liability Position Aggregate Fair Value
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CY2022 us-gaap Other Comprehensive Income Loss Before Reclassifications Net Of Tax
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CY2022 us-gaap Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax
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CY2022 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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CY2022 us-gaap Other Comprehensive Income Loss Before Reclassifications Tax
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CY2022 us-gaap Reclassification From Aoci Current Period Tax
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CY2021 us-gaap Other Comprehensive Income Loss Before Reclassifications Net Of Tax
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CY2021 us-gaap Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax
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CY2021 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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CY2021 us-gaap Other Comprehensive Income Loss Before Reclassifications Tax
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CY2021 us-gaap Reclassification From Aoci Current Period Tax
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CY2022 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
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CY2022 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2021 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2021 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2020 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
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CY2020 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
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CY2022 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
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CY2021 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
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CY2020 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
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CY2022 us-gaap Interest Income Expense Nonoperating Net
InterestIncomeExpenseNonoperatingNet
-205000000 usd
CY2021 us-gaap Interest Income Expense Nonoperating Net
InterestIncomeExpenseNonoperatingNet
-262000000 usd
CY2020 us-gaap Interest Income Expense Nonoperating Net
InterestIncomeExpenseNonoperatingNet
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CY2022 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
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CY2021 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
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CY2020 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
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CY2022 us-gaap Property Plant And Equipment Additions
PropertyPlantAndEquipmentAdditions
811000000 usd
CY2021 us-gaap Property Plant And Equipment Additions
PropertyPlantAndEquipmentAdditions
791000000 usd
CY2020 us-gaap Property Plant And Equipment Additions
PropertyPlantAndEquipmentAdditions
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CY2022 us-gaap Depreciation
Depreciation
717000000 usd
CY2021 us-gaap Depreciation
Depreciation
744000000 usd
CY2020 us-gaap Depreciation
Depreciation
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CY2022Q2 us-gaap Accounts Receivable Net Current
AccountsReceivableNetCurrent
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CY2021Q2 us-gaap Accounts Receivable Net Current
AccountsReceivableNetCurrent
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CY2022Q2 us-gaap Inventory Finished Goods Net Of Reserves
InventoryFinishedGoodsNetOfReserves
8420000000 usd
CY2021Q2 us-gaap Inventory Finished Goods Net Of Reserves
InventoryFinishedGoodsNetOfReserves
6854000000 usd
CY2022Q2 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
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CY2021Q2 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
4904000000 usd
CY2022Q2 us-gaap Letters Of Credit Outstanding Amount
LettersOfCreditOutstandingAmount
289000000 usd
CY2021Q2 us-gaap Letters Of Credit Outstanding Amount
LettersOfCreditOutstandingAmount
275000000 usd
CY2022 us-gaap Operating Lease Cost
OperatingLeaseCost
593000000 usd
CY2021 us-gaap Operating Lease Cost
OperatingLeaseCost
589000000 usd
CY2020 us-gaap Operating Lease Cost
OperatingLeaseCost
569000000 usd
CY2022 us-gaap Variable Lease Cost
VariableLeaseCost
366000000 usd
CY2021 us-gaap Variable Lease Cost
VariableLeaseCost
347000000 usd
CY2020 us-gaap Variable Lease Cost
VariableLeaseCost
337000000 usd
CY2022Q2 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
491000000 usd
CY2022Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
543000000 usd
CY2022Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
490000000 usd
CY2022Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Four
LesseeOperatingLeaseLiabilityPaymentsDueYearFour
405000000 usd
CY2022Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Five
LesseeOperatingLeaseLiabilityPaymentsDueYearFive
350000000 usd
CY2022Q2 us-gaap Lessee Operating Lease Liability Payments Due After Year Five
LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive
1250000000 usd
CY2022Q2 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
3529000000 usd
CY2022Q2 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
332000000 usd
CY2022Q2 us-gaap Operating Lease Liability
OperatingLeaseLiability
3197000000 usd
CY2022Q2 nke Lessee Operating Lease Liability Agreements Signed But Not Commenced Payments Due
LesseeOperatingLeaseLiabilityAgreementsSignedButNotCommencedPaymentsDue
175000000 usd
CY2022Q2 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P7Y9M18D
CY2021Q2 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P8Y3M18D
CY2022Q2 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.023
CY2021Q2 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.023
CY2022 us-gaap Operating Lease Payments
OperatingLeasePayments
589000000 usd
CY2021 us-gaap Operating Lease Payments
OperatingLeasePayments
583000000 usd
CY2020 us-gaap Operating Lease Payments
OperatingLeasePayments
532000000 usd
CY2022 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
537000000 usd
CY2021 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
489000000 usd
CY2020 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
705000000 usd
CY2022 dei Auditor Firm
AuditorFirmId
238

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