NOTE 8 — Long-Term Debt
Long-term debt, net of
unamortized premiums and discounts and swap fair value adjustments,
is comprised of the following:
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Book Value Outstanding
As of May 31, |
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Scheduled
Maturity |
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Original
Principal |
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Interest
Rate |
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Interest
Payments |
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2012 |
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2011 |
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(In millions) |
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(In millions) |
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| Corporate Bond Payables:(1) |
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July 23, 2012
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$ |
25 |
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5.66 |
% |
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Semi-Annually |
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$ |
25 |
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$ |
26 |
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August 7, 2012
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$ |
15 |
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5.40 |
% |
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Semi-Annually |
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15 |
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16 |
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October 1, 2013
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$ |
50 |
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4.70 |
% |
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Semi-Annually |
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50 |
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50 |
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October 15, 2015
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$ |
100 |
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5.15 |
% |
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Semi-Annually |
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115 |
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114 |
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| Japanese Yen Notes: |
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June 26, 2011
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¥ |
10,500 |
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4.30 |
% |
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Semi-Annually |
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0 |
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130 |
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February 14, 2012
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¥ |
5,000 |
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1.52 |
% |
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Semi-Annually |
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0 |
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62 |
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August 20, 2001 through November 20, 2020(2)
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¥ |
9,000 |
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2.60 |
% |
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Quarterly |
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50 |
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54 |
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August 20, 2001 through November 20, 2020(2)
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¥ |
4,000 |
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2.00 |
% |
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Quarterly |
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22 |
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24 |
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Total
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277 |
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476 |
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Less current maturities
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49 |
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200 |
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$ |
228 |
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$ |
276 |
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| (1) |
For
each of these notes, except the $50 million note maturing in
October 1, 2013, the Company has entered into interest rate
swap agreements whereby the Company receives fixed interest
payments at the same rate as the notes and pays variable interest
payments based on the six-month LIBOR plus a spread. Each swap has
the same notional amount and maturity date as the corresponding
note. At May 31, 2012, the interest rates payable on these
swap agreements ranged from approximately 0.6% to
1.0%.
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| (2) |
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.
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The scheduled maturity of
long-term debt in each of the years ending May 31, 2013
through 2017 are $49 million, $59 million,
$9 million, $109 million and $9 million,
respectively, at face value.
The fair value of the
Company’s long-term debt, including the current portion, was
approximately $283 million at May 31, 2012 and $482 million at
May 31, 2011. The fair value of long-term debt is estimated
based upon quoted prices of similar instruments (level
2).
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