The information required by Item 401 of Regulation S-K regarding executive officers is included under "Executive Officers of the Registrant" in Item 1 of this Report. The cash flows associated with the Company's fair value hedges are periodic interest payments while the swaps are outstanding, which are reflected within the Cash provided by operations component of the Consolidated Statement of Cash Flows. Footwear revenues growth in North America was driven by higher demand in nearly all key categories, led by our Basketball, Running, and Sportswear categories. The market valuation approach indicates the fair value of the business based on a comparison of the reporting unit to comparable publicly traded companies in similar lines of business. *, NIKE, Inc. Foreign Subsidiary Employee Stock Purchase Plan (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended November 30, 2008, File No. Such losses will expire as follows: During the years ended May 31, 2014 , 2013 , and 2012 , income tax benefits attributable to employee stock-based compensation transactions of $135 million , $76 million , and $120 million , respectively, were allocated to Total shareholders' equity. Steady results through effective management of our diversified portfolio of businesses. A slowing economy in our key markets could adversely affect the financial health of our customers, which in turn could have an adverse effect on our results of operations and financial condition. Level 3: Unobservable inputs for which there is little or no market data available, which require the reporting entity to develop its own assumptions. COMPARISON OF 5-YEAR CUMULATIVE TOTAL RETURN AMONG NIKE, INC.; S&P 500 INDEX; S&P APPAREL, ACCESSORIES & LUXURY GOODS INDEX; AND THE DOW JONES U.S. Due to market conversions and business declines in Latin America, licensing revenues decreased 7% for fiscal 2013. From time to time we are called upon to defend ourselves against lawsuits and regulatory actions relating to our business. Assets of discontinued operations were $0 million, $0 million, $615 million, $560 million, and $530 million for the years ended May 31, 2014 , 2013 , 2012 , 2011 , and 2010 , respectively. The Company recognizes this fair value, net of estimated forfeitures, as Total selling and administrative expense in the Consolidated Statements of Income over the vesting period using the straight-line method. We generally base our measurement of the fair value of a reporting unit on a blended analysis of the present value of future discounted cash flows and the market valuation approach. The NTC, whose functional currency is the U.S. Dollar, then sells the products to NIKE entities in their respective functional currencies. In most cases, this results in gains and losses on hedge derivatives being released from Other comprehensive income into Net income sometime after the maturity of the derivative. Upon maturity, the hedges are settled based on the current fair value of the forward contracts with the realized gain or loss remaining in Other comprehensive income. For financial reporting, their fiscal year ends on May 31st. Constant currency footwear revenues growth for fiscal 2013 was driven by growth in most key categories, most notably Running, Football (Soccer), and Women ' s Training. 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. The following is a reconciliation of the changes in the gross balance of unrecognized tax benefits: Unrecognized tax benefits, as of the beginning of the period, Gross increases related to prior period tax positions (1), Gross decreases related to prior period tax positions (1), Gross increases related to current period tax positions, Gross decreases related to current period tax positions, UNRECOGNIZED TAX BENEFITS, AS OF THE END OF THE PERIOD. December 18, 2014 NIKE, Inc. Reports Fiscal 2015 Second Quarter Results December 4, 2014 NIKE, Inc. Weighted average interest rates for the fixed rate swapped to floating rate debt reflect the effective interest rates at May 31, 2014. We extend credit to our customers based on an assessment of a customer's financial condition, generally without requiring collateral. On November 1, 2011, we entered into a committed credit facility agreement with a syndicate of banks which provides for up to $1 billion of borrowings with the option to increase borrowings to $1.5 billion with lender approval. Costs associated with preliminary project stage activities, training, maintenance and all other post-implementation stage activities are expensed as incurred. The Company's major foreign jurisdictions, China, the Netherlands and Brazil, have concluded substantially all income tax matters through calendar 2005, fiscal 2008 and calendar 2008, respectively. If our credit ratings are lowered, borrowing costs for future long-term debt or short-term credit facilities may increase and our financing options, including our access to the unsecured credit market, could be limited. Accordingly, shareholders should not assume that NIKE agrees with any statement or report issued by any analyst irrespective of the content of the statement or report. Nike, Inc. Changes in our assessment may result in the recognition of a tax benefit or an additional charge to the tax provision in the period our assessment changes. Over the past ten years, we have achieved many of these financial goals. In addition to the 1990 Plan, the Company gives employees the right to purchase shares at a discount to the market price under employee stock purchase plans ("ESPPs"). Analysts' estimates are based upon their own opinions and are often different from our estimates or expectations. As of the end of fiscal 2014 , we had repurchased 51.9 million shares at an average price of $65.83 for a total cost of $3,417 million under this current program. We believe that our audits provide a reasonable basis for our opinions. 2013. Online sales through NIKE-owned websites grew 32% in fiscal 2013 and represented approximately 12% of our total NIKE Brand DTC revenues for fiscal 2013. The fair value of the Company's Long-term debt, including the current portion, was approximately $1,154 million at May 31, 2014 and $1,219 million at May 31, 2013 . In fiscal 2014, most of this apparel production occurred in China, Vietnam, Thailand, Indonesia, Sri Lanka, Pakistan, and Malaysia. These shares are available for resale, subject to the requirements of the U.S. securities laws. There could be a significant disruption in the supply of fabrics or raw materials from current sources or, in the event of a disruption, our contract manufacturers might not be able to locate alternative suppliers of materials of comparable quality at an acceptable price, or at all. Unit sales increased approximately 9% and average selling price per pair increased 6%, primarily driven by selling price increases. Actual future gains and losses will differ from those estimated because of changes or differences in market rates and interrelationships, hedging instruments and hedge percentages, timing, and other factors. We estimate the combination of the translation of foreign currency-denominated profits from our international businesses and the year-over-year change in foreign currency related gains and losses included in Other expense (income), net had an unfavorable impact on our Income before income taxes of $56 million for fiscal 2013. Dollars for consolidated reporting, certain foreign subsidiaries use excess cash to purchase U.S. Dollar denominated available-for-sale investments. In general, and where applicable, we use quoted prices in active markets for identical assets or liabilities to determine the fair values of our financial instruments. Subsequently, we began repurchases under a four-year, $8 billion program approved by the Board in September 2012. 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