The estimated maximum one-day loss in fair value on our foreign currency sensitive derivative financial instruments, derived using the VaR model, was $50 million and $34 million at May 31, 2014 and 2013, respectively. As a result, we conduct purchase and sale transactions in various currencies, which increases our exposure to fluctuations in foreign currency exchange rates globally. The increase in NIKE Brand footwear revenues for fiscal 2014 was mainly due to growth in our Basketball, Sportswear, Running, and Football (Soccer) categories. The increase in average selling price per pair was driven by price increases and shift in mix toward higher priced products in nearly equal amounts. For fiscal 2013, Global Brand Divisions ' loss before interest and taxes increased $267 million, primarily driven by increased investments and marketing support for our digital business, product creation and design initiatives, and higher demand creation spending in the first quarter of fiscal 2013 around the Olympics and European Football Championships. 1-10635). The information required by Items 402, 407(e)(4), and 407(e)(5) of Regulation S-K regarding executive compensation is included under "Election of Directors - Director Compensation for Fiscal 2014 ," "Compensation Discussion and Analysis," "Executive Compensation," "Election of Directors - Compensation Committee Interlocks and Insider Participation," and "Compensation Committee Report" in the definitive Proxy Statement for our 2014 Annual Meeting of Shareholders and is incorporated herein by reference. The liability related to the unfunded pension liabilities of the plans was $100 million and $104 million at May 31, 2014 and May 31, 2013 , respectively, which was primarily classified as long-term in Deferred income taxes and other liabilities. The increase in selling and administrative expense was mainly driven by an increased level of demand creation spending around the European Football Championships and Olympics in the first quarter of fiscal 2013, as well as higher sports marketing expense. In fiscal 2013, unit sales of footwear increased approximately 7% and the average selling price per pair increased approximately 4%, driven equally by price increases and a shift in mix to higher priced products. The table presents principal cash flows and related weighted average interest rates by expected maturity dates. The principal materials used in our footwear products are natural and synthetic rubber, plastic compounds, foam cushioning materials, nylon, leather, canvas, and polyurethane films used to make NIKE Air-Sole cushioning components. Steady results through effective management of our diversified portfolio of businesses. Accelerated stock option expense for years ended, Accumulated Other Comprehensive Income Into Income. If our operating results are below the estimates or expectations of public market analysts and investors, our stock price could decline. The breakdown of earnings before interest and taxes is as follows: Our continued focus on the category offense drove increased demand for NIKE Brand products across all key categories for fiscal 2014. North America contributed 7 percentage points of the increase in NIKE, Inc. revenues, while Emerging Markets contributed 2 percentage points and Western and Central & Eastern Europe each contributed 1 percentage point. Sales of Hurley brand products are included within the NIKE Brand Action Sports category. These securities are valued using market prices on both active markets (Level 1) and less active markets (Level 2). The athletic footwear, apparel, and equipment retail markets in some countries are dominated by a few large athletic footwear, apparel, and equipment retailers with many stores. The interest rate is based on the U.S. Treasury (constant maturity) risk-free rate in effect at the date of grant for periods corresponding with the expected term of the options. The issuance resulted in gross proceeds before expenses of $998 million. The property serves as collateral for the debt. In addition, foreign currency exchange rate fluctuations, order cancellations, shipping timing, returns, and discounts can cause differences in the comparisons between futures orders and actual revenues. The Company's derivative contracts contain credit risk related contingent features designed to protect against significant deterioration in counterparties' creditworthiness and their ultimate ability to settle outstanding derivative contracts in the normal course of business. Demand creation expense increased 10% compared to the prior year, mainly driven by marketing support for events, including the World Cup, higher sports marketing expense, key product launches and initiatives, and investments to upgrade the presentation of our products in wholesale accounts. Management of NIKE, Inc. is responsible for the information and representations contained in this report. Under this program, our 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. November 20, 2014 NIKE, Inc. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of May 31, 2014 , based on criteria established in Internal Control - Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). These changes had no impact on previously reported results of operations or shareholders' equity. Demand creation expense consists of advertising and promotion costs, including costs of endorsement contracts, television, digital and print advertising, brand events, and retail brand presentation. The timing for hedging exposures, as well as the type and duration of the hedge instruments employed, are guided by our hedging policies and determined based upon the nature of the exposure and prevailing market conditions. Ms. Jackson also served as a member of the NIKE, Inc. Board of Directors from 2001 through 2009. Prior to joining NIKE, Ms. Krane was General Counsel and Senior Vice President for Corporate Affairs at Levi Strauss & Co. from 2006 to 2010. As a result, the Company recorded a gross increase in unrecognized tax benefits related to prior period tax positions, a gross decrease in unrecognized tax benefits related to prior period tax positions, and a settlement. investments are right for you, please request advice, for example from our, Register for online The largest single apparel factory accounted for approximately 7% of total fiscal 2014 NIKE Brand apparel production. We are currently evaluating the effect the guidance will have on the Company's consolidated financial position or results of operations. Prior to NIKE, Mr. Edwards was with the Colgate-Palmolive Company. If we were to repatriate indefinitely reinvested foreign funds, we would be required to accrue and pay additional U.S. taxes less applicable foreign tax credits. We also sell small amounts of various plastic products to other manufacturers through our wholly-owned subsidiary, NIKE IHM, Inc. One of our wholly-owned subsidiary brands, Hurley, headquartered in Costa Mesa, California ("Hurley"), designs and distributes a line of action sports and youth lifestyle apparel and accessories under the Hurley trademark. We recognize interest and penalties related to income tax matters in Income tax expense. The Umbro disposal group was classified as held-for-sale as of November 30, 2012 and the results of Umbro's operations are presented in the Net income (loss) from discontinued operations line item on the Consolidated Statements of Income. Financial report The Australia Post Group has achieved significant milestones in realising our growth and performance opportunities in the final year of our Future Ready business renewal program. The NTC, whose functional currency is the U.S. Dollar, then sells the products to NIKE entities in their respective functional currencies. There were no cash flows from net investment hedge settlements for the years ended May 31, 2014 and 2013. Constant currency footwear revenues growth in Western Europe reflected increases in every key category, most notably our Sportswear, Running, Football (Soccer), and Basketball categories. Nike Annual Report Analysis  Nike Annual Report Analysis In January of 1964 Phillip Knight a University of Oregon track athlete and Bill Bowerman, Knight’s coach, founded Blue Ribbon Spor Their company became incorporated in 1968 and is known today worldwide as Nike. Continuing uncertainty in the global capital and credit markets have led to fluctuations in the availability of business credit and capital liquidity, a contraction of consumer credit, business failures, sustained unemployment at historically high levels, and declines in consumer confidence and spending in many parts of the world. These controls include an analysis of period-over-period fluctuations and comparison to another independent pricing vendor. The combination of the purchase and sale of the U.S. Dollar investment and the hedging instrument has the effect of partially offsetting the year-over-year foreign currency translation impact on net earnings in the period the investments are sold. The levels of hierarchy are described below: Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities. Fluctuations in currency exchange rates create volatility in our reported results as we are required to translate the balance sheets, operational results, and cash flows of these subsidiaries into U.S. Prior to 1968, Mr. Knight was a certified public accountant with Price Waterhouse and Coopers & Lybrand and was an Assistant Professor of Business Administration at Portland State University. The selling price currently displayed is higher than the buying price. 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. NIKE, Inc is primarely in the business of rubber & plastics footwear. Premiums paid on options are initially recorded as deferred charges. *Nike figures come from the company's annual report. See "United States Market" and "International Markets" in Part 1 of this Report. We report changes in futures orders in our periodic financial reports. 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. Constant currency footwear revenues growth for fiscal 2014 was driven by growth in nearly every key category, led by Running, Sportswear, Football (Soccer), and Action Sports. The Standard & Poor's Apparel, Accessories & Luxury Goods Index consists of V.F. We also lease various office facilities in the surrounding metropolitan area. Weighted average interest rates for the fixed rate swapped to floating rate debt reflect the effective interest rates at May 31, 2014. ONE, THE PHONE CALL COMES. Any adverse effect on the quality of these decisions could impact our ability to retain real estate locations adequate to meet our targets or efficiently manage the profitability of our existing fleet of stores, which could have an adverse effect on our operating results and financial condition. Such actions include contractual measures such as entering into non-disclosure agreements and providing confidential information awareness training. Our NIKE Brand Direct to Consumer operations are managed within each geographic segment. This tax holiday may be extended when certain conditions are met or may be terminated early if certain conditions are not met. In fiscal 2014, five footwear contract manufacturers each accounted for greater than 10% of fiscal 2014 footwear production, and in aggregate accounted for approximately 67% of NIKE Brand footwear production in fiscal 2014. Inside Nike Inc's 10-K Annual Report: Financial - Expense Highlight. These trends are affecting many global manufacturing and service sectors, and the footwear and apparel industries, as a whole, are not immune. We may hedge certain foreign currency exposures to lessen and delay, but not to completely eliminate, the effects of foreign currency fluctuations on our financial results. These amounts are reported in Demand creation expense when we determine that it is probable that the specified level of performance will be maintained throughout the period. For the year ended May 31, 2013 , the revisions resulted in a net increase in Purchases of short-term investments of $431 million , a net increase in Maturities of short-term investments of $162 million , and a net increase in Sales of short-term investments of $332 million , which caused a net decrease of $63 million in Cash used by investing activities. In July 2013, the FASB issued an accounting standards update intended to provide guidance on the presentation of unrecognized tax benefits, reflecting the manner in which an entity would settle, at the reporting date, any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. NIKE revenue for the twelve months ending August 31, 2020 was $37.337B, a 6.26% decline year-over-year. We base our estimates on historical rates of product returns, discounts and claims, specific identification of outstanding claims and outstanding returns not yet received from customers, and estimated returns, discounts, and claims expected but not yet finalized with our customers. In fiscal 2014, five footwear contract manufacturers each accounted for greater than 10% of fiscal 2014 footwear production, and in aggregate accounted for approximately 67% of NIKE Brand footwear production in fiscal 2014. Provisions for post-invoice sales discounts, returns and miscellaneous claims from customers are estimated and recorded as a reduction to revenue at the time of sale. The Company elects to record the gross assets and liabilities of its derivative financial instruments in the Consolidated Balance Sheets. Long-Term Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on September 26, 2012). Can not accurately predict the ultimate outcome of any key individual could harm our business needs... Emphasis on high-quality construction and innovation in our Running, Sportswear, and sells athletic footwear apparel... 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