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Item 2. Management’s Discussion and Analysis

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 
 OVERVIEW 
 NIKE designs, develops, markets and sells athletic footwear, apparel, equipment, accessories and services worldwide. We are the largest seller of athletic footwear and apparel in the world. We sell our products through NIKE-owned retail stores and through digital platforms (which we refer to collectively as our “NIKE Direct” operations), to retail accounts and to a mix of independent distributors, licensees and sales representatives in virtually all countries around the world. Our goal is to deliver value to our shareholders by building a profitable global portfolio of branded footwear, apparel, equipment and accessories businesses. Our strategy is to achieve long-term revenue growth by creating innovative, “must-have” products, building deep personal consumer connections with our brands and delivering compelling consumer experiences through digital platforms and at retail. 
 Through the Consumer Direct Acceleration we are focusing on creating the marketplace of the future through more premium, consistent and seamless consumer experiences, leading with digital and our owned stores, as well as select wholesale partners that share our marketplace vision. Over the last several years, as we have executed against the Consumer Direct Acceleration, we have grown our NIKE Direct business to be approximately 43% of total NIKE Brand revenues for the first nine months of fiscal 2022, and we have reduced the number of wholesale accounts globally. Additionally, we have aligned our product creation and category organizations around a new consumer construct focused on Men’s, Women's, Kids' and the Jordan Brand and continue to invest in data and analytics, demand sensing, insight gathering, inventory management and other areas to create an end-to-end technology foundation, which we expect will further accelerate our digital transformation. 
 During fiscal 2021, we substantially com pleted a series of leadership and operating model changes to streamline and speed up the strategic execution of the Consumer Direct Acceleration. For the three and nine months ended February 28, 2022 , we recognized an immaterial amount of related employee termination costs and, to a lesser extent, stock-based compensation expense. During the three months ended February 28, 2021, we recognized employee termination costs of $23 million and $6 million within Operating overhead expense and Cost of sales, respectively, and made cash payments of $99 million. For the nine months ended February 28, 2021, we recognized employee termination costs of $168 million and $36 million within Operating overhead expense and Cost of sales, respectively, and made cash payments of $170 million. Additionally, the related stock-based compensation expense recorded within Operating overhead expense and Cost of sales was immaterial for the three months ended February 28, 2021, and was $40 million and $4 million, respectively, for the nine months ended February 28, 2021 . For all periods presented these costs were classified within Corporate. 
 For more information, see Note 14 — Restructuring within the accompanying Notes to the Unaudited Condensed Consolidated Financial Statements. 
 COVID-19 UPDATE 
 The COVID-19 pandemic and its impacts on the global supply chain continue to create volatility in our business results and operations globally, causing us to transform the way we operate in order to better serve our consumers. Revenues grew 5% for the third quarter of fiscal 2022, as we continued to manage the ongoing impacts of supply chain challenges across each of our geographies and Converse. Our NIKE Direct business continued its momentum, growing 15% and 17% on a reported and currency-neutral basis, respectively, for the third quarter of fiscal 2022, led by North America, APLA and EMEA, partially offset by declines in Greater China due to a COVID-19 resurgence and ongoing marketplace dynamics. As of April 4, 2022, nearly all of our owned stores were open across North America, EMEA and APLA. In Greater China however, due to a COVID-19 resurgence, we continue to experience a higher level of temporary store closures, with some operating on reduced hours, as well as lower physical traffic versus pre-pandemic periods. 
 During the first quarter of fiscal 2022, the majority of NIKE Brand and Converse contract manufacturers in Vietnam and Indonesia were subject to government mandated shutdowns due to COVID-19. These closures significantly impacted our previously planned inventory production. As a result of these closures, we lost approximately three months of production, impacting available product supply for this fiscal year. All impacted factories began re-opening in the second quarter of fiscal 2022 and globally, nearly all of our supplier base is currently operational without restrictions. While factory production is currently in line with pre-closure production levels and our future demand plans, there could be further impacts, including additional closures or employee absences, as a result of the emergence and spread of COVID-19 variants, as well as other factors outside of our control that could continue to cause further disruption to our planned inventory production. For fiscal 2021, 51% of NIKE Brand footwear and 30% of NIKE Brand apparel was manufactured in Vietnam, and 24% of NIKE Brand footwear and less than 12% of NIKE Brand apparel was manufactured in Indonesia. 
 In addition, our product availability continued to be impacted by extended inventory transit times in the third quarter and first nine months of fiscal 2022, due primarily to port congestion, transportation delays as well as labor and container shortages. Our 
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 product availability was impacted most significantly in our wholesale channel. We also experienced elevated transportation, logistics and fulfillment costs as a result of this dynamic environment, which partially offset gross margin expansion in the third quarter and first nine months of fiscal 2022. 
 We expect elevated transit times will continue to impact product availability, leading to inventory supply significantly lagging consumer demand for at least the remainder of the fiscal year. In addition, we expect transportation, logistics and fulfillment costs will continue to remain elevated as we navigate these supply chain constraints. We also expect product costs to remain elevated due to higher input costs. To mitigate the impact across our business, our teams are continuing to leverage our operational playbook and taking actions where we can, including shifting production capacity to other countries, strategic use of air freight, pricing actions and employing a seasonless approach to products. Despite these short-term dynamics, our Consumer Direct Acceleration strategy continues to drive our business towards our long-term fiscal 2025 financial goals shared in our Annual Report on Form 10-K for the fiscal year ended May 31, 2021. 
 During the quarter, we continued to invest in our digital transformation and brand campaigns as the world returns to sport. For the remainder of fiscal 2022, we will maintain our multi-year investment plans in order to transform our business for the future. 
 We continue to monitor the ongoing and dynamic impacts of COVID-19, as well as guidance from international and domestic authorities, including federal, state and local public health authorities and may take additional actions based on their recommendations. There have been and may continue to be developments outside of our control, including new COVID-19 variants, that require us to make adjustments to our operating plan, such as store operating hours and the timeline to return to normal production volumes in factories impacted by COVID-19. Such developments and other potential impacts of COVID-19, such as new or prolonged factory closures, higher inventory levels or inventory shortages in various markets, other adverse impacts on the global supply chain, revised payment terms with certain of our wholesale customers, higher sales-related reserves, factory cancellation costs and a volatile effective tax rate driven by changes in the mix of earnings across our jurisdictions, among other factors, could have material adverse impacts on our revenue growth as well as our overall profitability in future periods. As a result of these circumstances, COVID-19 related disruptions are making it more challenging to compare our performance, including our revenue growth and overall profitability, across quarters and fiscal years, and we expect that the operating environment could remain volatile as COVID-19 variants may continue to cause disruptions to our operations. 
 THIRD QUARTER OVERVIEW 
 For the third quarter of fiscal 2022, NIKE, Inc. Revenues increased 5% to $10.9 billion compared to the third quarter of fiscal 2021 and increased 8% on a currency-neutral basis. Net income was $1,396 million and diluted earnings per common share was $0.87 for the third quarter of fiscal 2022, compared to Net income of $1,449 million and diluted earnings per common share of $0.90 for the third quarter of fiscal 2021. 
 Income before income taxes increased 2% compared to the third quarter of fiscal 2021, due to higher Revenues and gross margin expansion, partially offset by higher Selling and administrative expense. NIKE Brand revenues, which represent over 90% of NIKE, Inc. Revenues, increased 6% compared to the third quarter of fiscal 2021. On a currency-neutral basis, NIKE Brand revenues increased 8%, driven by higher revenues in EMEA, North America and APLA, partially offset by declines in Greater China. Additionally, NIKE Brand currency-neutral revenues were higher across apparel and footwear, as well as Men's, the Jordan Brand, Kids' and Women's. Revenues for Converse decreased 1% and increased 2% compared to the third quarter of fiscal 2021, on a reported and currency-neutral basis, respectively, led by strong performance in North America and Western Europe, partially offset by declines in Asia. 
 Our effective tax rate was 16.4% for the third quarter of fiscal 2022, compared to 11.4% for the third quarter of fiscal 2021, due to a shift in our earnings mix, the effects of stock-based compensation and recently finalized U.S. tax regulations. 
 Consumer protection and data privacy laws have been coming into effect across the world, including recently introduced laws that became effective during the second quarter of fiscal 2022 in China, that provide for the comprehensive regulation of data and personal data processing activities across all industries and operations such as collecting, utilizing, processing, sharing and transferring data and personal information in and out of China. Uncertainty regarding the interpretation and application of these laws in practice may impact us and could impair our ability to execute on our operating plan and have adverse effects on our business and results of operations. Further, any non-compliance could subject us to, among other things, fines, legal proceedings, regulatory orders or damage to our reputation. 
 During fiscal 2021, the transaction with Grupo SBF S.A. to purchase substantially all of our NIKE Brand operations in Brazil closed. We remain committed to selling our Argentina, Chile and Uruguay legal entities and granting distribution rights to third-party distributors. As such, the assets and liabilities of these entities have remained classified as held-for-sale on the Unaudited Condensed Consolidated Balance Sheets. For more information see Note 13 — Acquisitions and Divestitures within the accompanying Notes to the Unaudited Condensed Consolidated Financial Statements. 
 
 
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 USE OF NON-GAAP FINANCIAL MEASURES 
 Throughout this Quarterly Report on Form 10-Q, we discuss non-GAAP financial measures, including references to wholesale equivalent revenues, currency-neutral revenues, as well as Total NIKE Brand earnings before interest and taxes (EBIT), Total NIKE, Inc. EBIT and EBIT Margin, which should be considered in addition to, and not in lieu of, the financial measures calculated and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). References to wholesale equivalent revenues are intended to provide context as to the total size of our NIKE Brand market footprint if we had no NIKE Direct operations. NIKE Brand wholesale equivalent revenues consist of (1) sales to external wholesale customers and (2) internal sales from our wholesale operations to our NIKE Direct operations, which are charged at prices comparable to those charged to external wholesale customers. Additionally, currency-neutral revenues are calculated using actual exchange rates in use during the comparative prior year period to enhance the visibility of the underlying business trends excluding the impact of translation arising from foreign currency exchange rate fluctuations. EBIT is calculated as Net Income before Interest expense (income), net and Income tax expense in the Unaudited Condensed Consolidated Statements of Income. EBIT Margin is calculated as EBIT divided by total NIKE, Inc. Revenues. 
 Management uses these non-GAAP financial measures when evaluating the Company's performance, including when making financial and operating decisions. Additionally, management believes these non-GAAP financial measures provide investors with additional financial information that should be considered when assessing our underlying business performance and trends. However, references to wholesale equivalent revenues, currency-neutral revenues, EBIT and EBIT margin should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with U.S. GAAP and may not be comparable to similarly titled non-GAAP measures used by other companies. 
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 RESULTS OF OPERATIONS 
 
 THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28, 
 (Dollars in millions, except per share data) 2022 2021 % CHANGE 2022 2021 % CHANGE 
 Revenues $ 10,871 $ 10,357 5 % $ 34,476 $ 32,194 7 % 
 Cost of sales 5,804 5,638 3 % 18,500 17,887 3 % 
 Gross profit 5,067 4,719 7 % 15,976 14,307 12 % 
 Gross margin 46.6 % 45.6 % 46.3 % 44.4 % 
 Demand creation expense 854 711 20 % 2,789 2,117 32 % 
 Operating overhead expense 2,584 2,330 11 % 7,980 7,166 11 % 
 Total selling and administrative expense 3,438 3,041 13 % 10,769 9,283 16 % 
 % of revenues 31.6 % 29.4 % 31.2 % 28.8 % 
 Interest expense (income), net 53 64 — 165 199 — 
 Other (income) expense, net (94) (22) — (235) 18 — 
 Income before income taxes 1,670 1,636 2 % 5,277 4,807 10 % 
 Income tax expense 274 187 47 % 670 589 14 % 
 Effective tax rate 16.4 % 11.4 % 12.7 % 12.3 % 
 NET INCOME $ 1,396 $ 1,449 -4 % $ 4,607 $ 4,218 9 % 
 Diluted earnings per common share $ 0.87 $ 0.90 -3 % $ 2.85 $ 2.62 9 % 

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 CONSOLIDATED OPERATING RESULTS 
 REVENUES 
 
 THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28, 
 (Dollars in millions) 
 2022 2021 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES (1) 
 2022 2021 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES (1) 
 
 NIKE, Inc. Revenues: 
 NIKE Brand Revenues by: 
 Footwear $ 6,660 $ 6,505 2 % 5 % $ 21,158 $ 20,074 5 % 5 % 
 Apparel 3,232 2,966 9 % 12 % 10,330 9,426 10 % 9 % 
 Equipment 390 296 32 % 36 % 1,237 1,014 22 % 21 % 
 Global Brand Divisions (2) 
 41 6 583 % 561 % 54 18 200 % 206 % 
 Total NIKE Brand Revenues 10,323 9,773 6 % 8 % 32,779 30,532 7 % 7 % 
 Converse 567 570 -1 % 2 % 1,753 1,609 9 % 8 % 
 Corporate (3) 
 (19) 14 — — (56) 53 — — 
 TOTAL NIKE, INC. REVENUES $ 10,871 $ 10,357 5 % 8 % $ 34,476 $ 32,194 7 % 7 % 
 Supplemental NIKE Brand Revenues Details: 
 NIKE Brand Revenues by: 
 Sales to Wholesale Customers $ 5,728 $ 5,814 -1 % 1 % $ 18,790 $ 18,601 1 % 0 % 
 Sales through NIKE Direct 4,554 3,953 15 % 17 % 13,935 11,913 17 % 16 % 
 Global Brand Divisions (2) 
 41 6 583 % 561 % 54 18 200 % 206 % 
 TOTAL NIKE BRAND REVENUES $ 10,323 $ 9,773 6 % 8 % $ 32,779 $ 30,532 7 % 7 % 

 (1) The percent change excluding currency changes represents a non-GAAP financial measure. See "Use of Non-GAAP Financial Measures" for further information. 
 (2) Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment. 
 (3) Corporate revenues primarily consist of foreign currency hedge gains and losses related to revenues generated by entities within the NIKE Brand geographic operating segments and Converse, but managed through our central foreign exchange risk management program. 
 THIRD QUARTER OF FISCAL 2022 COMPARED TO THIRD QUARTER OF FISCAL 2021 
 On a currency-neutral basis, NIKE, Inc. Revenues increased 8% for the third quarter of fiscal 2022, driven by growth in EMEA, North America and APLA, partially offset by lower revenues in Greater China. Higher revenues in EMEA, North America and APLA contributed approximately 4, 3 and 3 percentage points to NIKE, Inc. Revenues, respectively, while lower revenues in Greater China reduced NIKE, Inc. Revenues by approximately 2 percentage points. 
 On a currency-neutral basis, NIKE Brand footwear revenues increased 5% in the third quarter of fiscal 2022, driven by growth in NIKE Direct, partially offset by a decline in our wholesale business. Unit sales of footwear decreased 3%, while higher average selling price (ASP) per pair contributed approximately 8 percentage points of footwear revenue growth, primarily due to higher NIKE Direct ASP, the favorable impact of growth in our NIKE Direct business, higher full-price ASP, net of discounts, on a wholesale equivalent basis, and a higher mix of full-price sales. 
 Currency-neutral NIKE Brand apparel revenues, for the third quarter of fiscal 2022, increased 12%, driven primarily by growth in Men's. Unit sales of apparel increased 5%, and higher ASP per unit contributed approximately 7 percentage points of apparel revenue growth, primarily due to higher full-price and NIKE Direct ASPs. 
 On a reported basis, NIKE Direct revenues represented approximately 44% of our total NIKE Brand revenues for the third quarter of fiscal 2022 compared to 40% for the third quarter of fiscal 2021. Digital commerce sales were $2.7 billion for the third quarter of fiscal 2022 compared to $2.2 billion for the third quarter of fiscal 2021. On a currency-neutral basis, NIKE Direct revenues increased 17%, driven by digital commerce sales growth of 22%, comparable store sales growth of 12%, in part due to improved physical retail traffic, and the addition of new stores. Comparable store sales, which exclude digital commerce sales, comprises revenues from NIKE-owned in-line and factory stores for which all three of the following requirements have been met: (1) the store has been open at least one year, (2) square footage has not changed by more than 15% within the past year and (3) the store has not been permanently repositioned within the past year. Comparable store sales includes revenues from stores that were temporarily closed during the period as a result of COVID-19. Comparable store sales represents a performance measure that we believe is useful information for management and investors in understanding the performance of our established NIKE-owned in-line and factory stores. Management considers this metric when making financial and operating decisions. The method of calculating comparable 
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 store sales varies across the retail industry. As a result, our calculation of this metric may not be comparable to similarly titled measures used by other companies. 
 FIRST NINE MONTHS OF FISCAL 2022 COMPARED TO FIRST NINE MONTHS OF FISCAL 2021 
 On a currency-neutral basis, NIKE, Inc. Revenues increased 7% for the first nine months of fiscal 2022, driven by higher revenues in North America, EMEA, APLA and Converse, partially offset by lower revenues in Greater China. Higher revenues in North America, EMEA, APLA and Converse contributed approximately 4, 2, 2 and 1 percentage points to NIKE, Inc. Revenues, respectively, while lower revenues in Greater China reduced NIKE, Inc. Revenues by approximately 2 percentage points. 
 On a currency-neutral basis, NIKE Brand footwear revenues increased 5%, driven by growth in NIKE Direct, partially offset by a decline in our wholesale business. Unit sales of footwear decreased 2%, while higher ASP per pair contributed approximately 7 percentage points of footwear revenue growth, primarily due to higher NIKE Direct ASP, a higher mix of full-price sales and the favorable impact of growth in our NIKE Direct business. 
 Currency-neutral NIKE Brand apparel revenues increased 9%, driven primarily by growth in Men's. Unit sales of apparel increased 2%, and higher ASP per unit contributed approximately 7 percentage points of apparel revenue growth. Higher ASP per unit was primarily due to higher full-price and NIKE Direct ASPs, as well as a higher mix of full-price sales. 
 On a reported basis, NIKE Direct revenues represented approximately 43% of our total NIKE Brand revenues for the first nine months of fiscal 2022 compared to 39% for the first nine months of fiscal 2021. Digital commerce sales were $7.9 billion for the first nine months of fiscal 2022 compared to $6.6 billion for the first nine months of fiscal 2021. On a currency-neutral basis, NIKE Direct revenues increased 16%, driven by digital commerce sales growth of 19%, comparable store sales growth of 12%, in part due to improved physical retail traffic, and the addition of new stores. 
 GROSS MARGIN 
 
 THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28, 
 (Dollars in millions) 
 2022 2021 % CHANGE 2022 2021 % CHANGE 
 Gross profit $ 5,067 $ 4,719 7 % $ 15,976 $ 14,307 12 % 
 Gross margin 46.6 % 45.6 % 100 bps 46.3 % 44.4 % 190 bps 

 For the third quarter of fiscal 2022, our consolidated gross margin was 100 basis points higher than the prior year period and primarily reflected the following factors: 
 • Higher margin in our NIKE Direct business, primarily driven by lower promotional activity in the current period reflecting limited available for sale inventory due to supply chain constraints compared to higher promotional activity in the prior year as we managed the impacts from COVID-19, (increasing gross margin approximately 140 basis points); 
 • Favorable changes in net foreign currency exchange rates, including hedges, (increasing gross margin approximately 80 basis points); 
 • Higher mix of full-price sales, on a wholesale equivalent basis, (increasing gross margin approximately 70 basis points); 
 • Lower NIKE Brand full-price product margins, on a wholesale equivalent basis, (decreasing gross margin approximately 170 basis points) reflecting: 
 • Higher product costs (decreasing gross margin approximately 120 basis points) largely due to increased freight and logistics costs as well as product mix; 
 • Lower full-price ASP, net of discounts, (decreasing gross margin approximately 50 basis points) driven by product mix, partially offset by strategic pricing increases; and 
 • Higher other costs, in part due to higher warehousing and freight costs, among other factors (decreasing gross margin approximately 30 basis points). 
 For the first nine months of fiscal 2022, our consolidated gross margin was 190 basis points higher than the prior year period and primarily reflected the following factors: 
 • Higher margin in our NIKE Direct business, primarily driven by lower promotional activity in the current period reflecting limited available for sale inventory due to supply chain constraints compared to higher promotional activity in the prior year as we managed the impacts from COVID-19 (increasing gross margin approximately 160 basis points); 
 • Higher mix of full-price sales, on a wholesale equivalent basis, (increasing gross margin approximately 70 basis points); 
 • Favorable changes in net foreign currency exchange rates, including hedges, (increasing gross margin approximately 50 basis points); and 
 • Higher NIKE Brand product costs, on a wholesale equivalent basis, primarily due to increased freight and logistics costs (decreasing gross margin approximately 90 basis points). 
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 TOTAL SELLING AND ADMINISTRATIVE EXPENSE 
 
 THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28, 
 (Dollars in millions) 
 2022 2021 % CHANGE 2022 2021 % CHANGE 
 Demand creation expense (1) 
 $ 854 $ 711 20 % $ 2,789 $ 2,117 32 % 
 Operating overhead expense 2,584 2,330 11 % 7,980 7,166 11 % 
 Total selling and administrative expense $ 3,438 $ 3,041 13 % $ 10,769 $ 9,283 16 % 
 % of revenues 31.6 % 29.4 % 220 bps 31.2 % 28.8 % 240 bps 

 (1) Demand creation expense consists of advertising and promotion costs, including costs of endorsement contracts, complimentary products, television, digital and print advertising and media costs, brand events and retail brand presentation. 
 THIRD QUARTER OF FISCAL 2022 COMPARED TO THIRD QUARTER OF FISCAL 2021 
 Demand creation expense increased 20% for the third quarter of fiscal 2022 primarily due to higher advertising and marketing spend reflecting normalization of spend against brand campaigns and continued investments in digital marketing to support heightened digital demand. Changes in foreign currency exchange rates decreased Demand creation expense by approximately 2 percentage points. 
 Operating overhead expense increased 11% primarily due to higher strategic technology investments and an increase in wage-related expenses. Changes in foreign currency exchange rates decreased Operating overhead expense by approximately 1 percentage point. 
 FIRST NINE MONTHS OF FISCAL 2022 COMPARED TO FIRST NINE MONTHS OF FISCAL 2021 
 Demand creation expense increased 32% for the first nine months of fiscal 2022 primarily due to higher advertising and marketing spend against brand campaigns as we experienced marketplace closures in the prior year due to COVID-19, as well as continued investments in digital marketing to support heightened digital demand. Changes in foreign currency exchange rates had an insignificant impact on Demand creation expense. 
 Operating overhead expense increased 11% primarily due to higher strategic technology investments and an increase in wage-related expenses. Changes in foreign currency exchange rates had an insignificant impact on Operating overhead expense. 
 OTHER (INCOME) EXPENSE, NET 
 
 THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28, 
 (Dollars in millions) 
 2022 2021 2022 2021 
 Other (income) expense, net $ (94) $ (22) $ (235) $ 18 

 Other (income) expense, net comprises foreign currency conversion gains and losses from the remeasurement of monetary assets and liabilities denominated in non-functional currencies and the impact of certain foreign currency derivative instruments, as well as unusual or non-operating transactions that are outside the normal course of business. 
 For the third quarter of fiscal 2022, Other (income) expense, net increased from $22 million of other income to $94 million in the current year, primarily due to a favorable change in foreign currency conversion gains and losses, including hedges. 
 For the first nine months of fiscal 2022, Other (income) expense, net changed from $18 million of other expense to $235 million of other income in the current year, primarily due to a favorable change in foreign currency conversion gains and losses, including hedges, as well as a net incremental charge in the prior year, related to our planned, strategic distributor partnership transition within APLA. 
 For more information related to our distributor partnership transition within APLA, see Note 13 — Acquisitions and Divestitures within the accompanying Notes to the Unaudited Condensed Consolidated Financial Statements. 
 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 (income) expense, net had favorable impacts of approximately $3 million and $170 million on our Income before income taxes for the third quarter and first nine months of fiscal 2022, respectively. 
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 INCOME TAXES 
 
 THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28, 
 2022 2021 % CHANGE 2022 2021 % CHANGE 
 Effective tax rate 16.4 % 11.4 % 500 bps 12.7 % 12.3 % 40 bps 

 Our effective tax rate was 16.4% for the third quarter of fiscal 2022, compared to 11.4% for the third quarter of fiscal 2021, primarily due to the impact of recently finalized U.S. tax regulations and a less favorable impact from stock-based compensation, partially offset by a shift in our earnings mix. 
 Our effective tax rate was 12.7% for the first nine months of fiscal 2022, compared to 12.3% for the first nine months of fiscal 2021, primarily due to the impact of recently finalized U.S. tax regulations, partially offset by changes in discrete items compared to the first nine months of fiscal 2021, including the recognition of a reserve in the first quarter of fiscal 2021 related to Altera Corp. v. Commissioner. 
 Refer to Note 6 — Income Taxes within the accompanying Notes to the Unaudited Condensed Consolidated Financial Statements for additional information. 
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 OPERATING SEGMENTS 
 Our operating segments are evidence of the structure of the Company's internal organization. The NIKE Brand segments are defined by geographic regions for operations participating in NIKE Brand sales activity. 
 Each NIKE Brand geographic segment operates predominantly in one industry: the design, development, marketing and selling of athletic footwear, apparel and equipment. The Company's reportable operating segments for the NIKE Brand are: North America; Europe, Middle East & Africa (EMEA); Greater China; and Asia Pacific & Latin America (APLA), and include results for the NIKE and Jordan brands. The Company's NIKE Direct operations are managed within each geographic operating segment. Converse is also a reportable operating segment for the Company, and operates predominately in one industry: the design, marketing, licensing and selling of athletic lifestyle sneakers, apparel and accessories. 
 As part of our centrally managed foreign exchange risk management program, standard foreign currency exchange rates are assigned twice per year to each NIKE Brand entity in our geographic operating segments and Converse. These rates are set approximately nine and twelve months in advance of the future selling seasons to which they relate (specifically, for each currency, one standard rate applies to the fall and holiday selling seasons and one standard rate applies to the spring and summer selling seasons) based on average market spot rates in the calendar month preceding the date they are established. Inventories and Cost of sales for geographic operating segments and Converse reflect the use of these standard rates to record non-functional currency product purchases into the entity's functional currency. Differences between assigned standard foreign currency exchange rates and actual market rates are included in Corporate, together with foreign currency hedge gains and losses generated from our centrally managed foreign exchange risk management program and other conversion gains and losses. 
 The breakdown of Revenues is as follows: 
 
 THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28, 
 (Dollars in millions) 
 2022 2021 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES (1) 
 2022 2021 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES (1) 
 
 North America $ 3,882 $ 3,564 9 % 9 % $ 13,238 $ 11,795 12 % 12 % 
 Europe, Middle East & Africa 2,779 2,609 7 % 13 % 9,228 8,477 9 % 9 % 
 Greater China 2,160 2,279 -5 % -8 % 5,986 6,357 -6 % -11 % 
 Asia Pacific & Latin America 1,461 1,315 11 % 19 % 4,273 3,885 10 % 13 % 
 Global Brand Divisions (2) 
 41 6 583 % 561 % 54 18 200 % 206 % 
 TOTAL NIKE BRAND 10,323 9,773 6 % 8 % 32,779 30,532 7 % 7 % 
 Converse 567 570 -1 % 2 % 1,753 1,609 9 % 8 % 
 Corporate (3) 
 (19) 14 — — (56) 53 — — 
 TOTAL NIKE, INC. REVENUES $ 10,871 $ 10,357 5 % 8 % $ 34,476 $ 32,194 7 % 7 % 

 (1) The percent change excluding currency changes represents a non-GAAP financial measure. See "Use of Non-GAAP Financial Measures" for further information. 
 (2) Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment. 
 (3) Corporate revenues primarily consist of foreign currency hedge gains and losses related to revenues generated by entities within the NIKE Brand geographic operating segments and Converse, but managed through our central foreign exchange risk management program. 
 The primary financial measure used by the Company to evaluate performance of individual operating segments is EBIT, which represents Net income before Interest expense (income), net and Income tax expense in the Unaudited Condensed Consolidated Statements of Income. As discussed in Note 12 — Operating Segments in the accompanying Notes to the Unaudited Condensed Consolidated Financial Statements, certain corporate costs are not included in EBIT of our operating segments. 
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 The breakdown of earnings before interest and taxes is as follows: 
 
 THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28, 
 (Dollars in millions) 
 2022 2021 % CHANGE 2022 2021 % CHANGE 
 North America $ 967 $ 970 0 % $ 3,636 $ 3,295 10 % 
 Europe, Middle East & Africa 713 533 34 % 2,394 1,885 27 % 
 Greater China 784 973 -19 % 2,054 2,552 -20 % 
 Asia Pacific & Latin America 478 408 17 % 1,347 1,112 21 % 
 Global Brand Divisions (975) (852) -14 % (3,033) (2,546) -19 % 
 TOTAL NIKE BRAND (1) 
 1,967 2,032 -3 % 6,398 6,298 2 % 
 Converse 168 150 12 % 504 405 24 % 
 Corporate 
 (412) (482) 15 % (1,460) (1,697) 14 % 
 TOTAL NIKE, INC. EARNINGS BEFORE INTEREST AND TAXES (1) 
 1,723 1,700 1 % 5,442 5,006 9 % 
 EBIT margin (1) 
 15.8 % 16.4 % 15.8 % 15.5 % 
 Interest expense (income), net 53 64 — 165 199 — 
 TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES $ 1,670 $ 1,636 2 % $ 5,277 $ 4,807 10 % 

 (1) Total NIKE Brand EBIT, Total NIKE, Inc. EBIT and EBIT margin represent non-GAAP financial measures. See "Use of Non-GAAP Financial Measures" for further information. 
 
 NORTH AMERICA 
 
 THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28, 
 (Dollars in millions) 2022 2021 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES 2022 2021 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES 
 Revenues by: 
 Footwear $ 2,532 $ 2,382 6 % 6 % $ 8,648 $ 7,851 10 % 10 % 
 Apparel 1,207 1,087 11 % 11 % 4,117 3,580 15 % 15 % 
 Equipment 143 95 51 % 49 % 473 364 30 % 30 % 
 TOTAL REVENUES $ 3,882 $ 3,564 9 % 9 % $ 13,238 $ 11,795 12 % 12 % 
 Revenues by: 
 Sales to Wholesale Customers $ 1,769 $ 1,894 -7 % -7 % $ 6,774 $ 6,967 -3 % -3 % 
 Sales through NIKE Direct 2,113 1,670 27 % 27 % 6,464 4,828 34 % 34 % 
 TOTAL REVENUES $ 3,882 $ 3,564 9 % 9 % $ 13,238 $ 11,795 12 % 12 % 
 EARNINGS BEFORE INTEREST AND TAXES $ 967 $ 970 0 % $ 3,636 $ 3,295 10 % 

 THIRD QUARTER OF FISCAL 2022 COMPARED TO THIRD QUARTER OF FISCAL 2021 
 On a currency-neutral basis, North America revenues for the third quarter of fiscal 2022 increased 9%, due primarily to higher revenues in Men's. NIKE Direct revenues increased 27%, driven by strong digital sales growth of 33%, comparable store sales growth of 16%, in part due to improved physical retail traffic, and the addition of new stores. 
 Footwear revenues increased 6% on a currency-neutral basis, driven by growth in NIKE Direct, partially offset by declines in our wholesale business. Unit sales of footwear decreased 10%, reflecting a lack of available inventory supply due to the impact of factory closures during the first quarter of fiscal 2022 as well as elevated inventory transit times, while higher ASP per pair contributed approximately 16 percentage points of footwear revenue growth. Higher ASP per pair was primarily due to higher NIKE Direct ASP, the favorable impact of growth in our NIKE Direct business, higher full-price ASP and a higher mix of full-price sales. 
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 On a currency-neutral basis, apparel revenues increased 11%, driven primarily by growth in Men's, partially offset by a decline in Women's. Unit sales of apparel decreased 6%, while higher ASP per unit contributed approximately 17 percentage points of apparel revenue growth. The increase in ASP per unit was primarily driven by higher full-price and NIKE Direct ASPs and the favorable impact of growth in our NIKE Direct business. 
 Reported EBIT was flat as higher revenues were offset by higher selling and administrative expense and gross margin contraction. Gross margin decreased approximately 50 basis points largely driven by higher product costs primarily due to increased freight and logistics costs. This activity was partially offset by higher margins in our NIKE Direct business and the favorable impact of growth in our NIKE Direct business as well as higher full-price ASP, net of discounts, and a higher mix of full-price sales. Selling and administrative expense increased due to higher operating overhead and demand creation expense. Operating overhead expense increased primarily as a result of higher wage-related costs, lower bad debt recoveries and higher strategic technology investments. The increase in demand creation expense reflected higher advertising and marketing expense as well as continued investments in digital marketing to support heightened digital demand. 
 FIRST NINE MONTHS OF FISCAL 2022 COMPARED TO FIRST NINE MONTHS OF FISCAL 2021 
 On a currency-neutral basis, North America revenues for the first nine months of fiscal 2022 increased 12%, due primarily to higher revenues in Women's. NIKE Direct revenues increased 34%, driven by strong digital sales growth of 39%, comparable store sales growth of 26%, in part due to improved physical retail traffic, and the addition of new stores. 
 Footwear revenues increased 10% on a currency-neutral basis, largely driven by higher revenues in Women's and Kids', partially offset by a decline in Men's. Unit sales of footwear increased 1%, while higher ASP per pair contributed approximately 9 percentage points of footwear revenue growth. Higher ASP per pair was primarily due to higher NIKE Direct ASP, the favorable impact of growth in our NIKE Direct business and a higher mix of full-price sales, partially offset by lower full-price ASP. 
 On a currency-neutral basis, apparel revenues increased 15%, driven primarily by higher revenues in Men's. Unit sales of apparel increased 1%, while higher ASP per unit contributed approximately 14 percentage points of apparel revenue growth. The increase in ASP per unit was primarily driven by higher full-price and NIKE Direct ASPs, the favorable impact of growth in our NIKE Direct business as well as a higher mix of full-price sales. 
 Reported EBIT increased 10% as higher revenues and gross margin expansion more than offset higher selling and administrative expense. Gross margin increased approximately 100 basis points primarily due to higher margins and the favorable impact of growth in our NIKE Direct business, a higher mix of full-price sales and higher full-price ASP, net of discounts. This activity was partially offset by higher product costs primarily due to increased freight and logistics costs. Selling and administrative expense increased due to higher demand creation and operating overhead expense. Demand creation expense increased primarily as a result of higher advertising and marketing expense, as well as higher digital marketing investments. The increase in operating overhead expense reflected higher wage-related costs as well as an increase in NIKE Direct strategic technology investments. 
 
 EUROPE, MIDDLE EAST & AFRICA 
 
 THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28, 
 (Dollars in millions) 2022 2021 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES 2022 2021 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES 
 Revenues by: 
 Footwear $ 1,569 $ 1,606 -2 % 4 % $ 5,358 $ 5,139 4 % 4 % 
 Apparel 1,083 898 21 % 28 % 3,444 2,973 16 % 16 % 
 Equipment 127 105 21 % 29 % 426 365 17 % 16 % 
 TOTAL REVENUES $ 2,779 $ 2,609 7 % 13 % $ 9,228 $ 8,477 9 % 9 % 
 Revenues by: 
 Sales to Wholesale Customers $ 1,858 $ 1,805 3 % 10 % $ 6,194 $ 5,763 7 % 7 % 
 Sales through NIKE Direct 921 804 15 % 22 % 3,034 2,714 12 % 12 % 
 TOTAL REVENUES $ 2,779 $ 2,609 7 % 13 % $ 9,228 $ 8,477 9 % 9 % 
 EARNINGS BEFORE INTEREST AND TAXES $ 713 $ 533 34 % $ 2,394 $ 1,885 27 % 

 THIRD QUARTER OF FISCAL 2022 COMPARED TO THIRD QUARTER OF FISCAL 2021 
 On a currency-neutral basis, EMEA revenues for the third quarter of fiscal 2022 increased 13%, primarily driven by growth in Men's. NIKE Direct revenues increased 22% primarily due to comparable store sales growth of 46%, in part due to improved physical retail traffic, digital sales growth of 11% and the addition of new stores. 
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 Currency-neutral footwear revenues increased 4%, driven by growth in NIKE Direct, partially offset by declines in our wholesale business. Unit sales of footwear decreased 6%, while higher ASP per pair contributed approximately 10 percentage points of footwear revenue growth. Higher ASP per pair was primarily due to higher full-price and NIKE Direct ASPs as well as a higher mix of full-price sales. 
 Currency-neutral apparel revenues increased 28% due primarily to higher revenues in Men's. Unit sales of apparel increased 19%, while higher ASP per unit contributed approximately 9 percentage points of apparel revenue growth, primarily due to higher full-price and NIKE Direct ASPs as well as a higher mix of full-price sales. 
 Reported EBIT increased 34% as higher revenues and gross margin expansion more than offset higher selling and administrative expense. Gross margin increased approximately 590 basis points primarily due to favorable changes in standard foreign currency exchange rates, higher NIKE Direct margins and a higher mix of full-price sales. Selling and administrative expense increased due to higher operating overhead and demand creation expense. Higher operating overhead expense was driven by higher strategic technology investments. Higher demand creation expense was primarily due to higher advertising and marketing expense. 
 FIRST NINE MONTHS OF FISCAL 2022 COMPARED TO FIRST NINE MONTHS OF FISCAL 2021 
 On a currency-neutral basis, EMEA revenues for the first nine months of fiscal 2022 increased 9%, due primarily to higher revenues in Men’s. NIKE Direct revenues increased 12% primarily due to comparable store sales growth of 22%, in part due to improved physical retail traffic, digital sales growth of 4% and the addition of new stores. 
 Currency-neutral footwear revenues increased 4%, driven by growth in NIKE Direct and our wholesale business. Unit sales of footwear decreased 4%, while higher ASP per pair contributed approximately 8 percentage points of footwear revenue growth. Higher ASP per pair was primarily due to higher NIKE Direct and full-price ASPs as well as a higher mix of full-price sales. 
 Currency-neutral apparel revenues increased 16% due primarily to higher revenues in Men's. Unit sales of apparel increased 8%, while higher ASP per unit contributed approximately 8 percentage points of apparel revenue growth, primarily due to higher NIKE Direct and full-price ASPs as well as a higher mix of full-price sales. 
 Reported EBIT increased 27% as higher revenues and gross margin expansion more than offset higher selling and administrative expense. Gross margin increased approximately 500 basis points primarily due to higher NIKE Direct margins, favorable changes in standard foreign currency exchange rates and a higher mix of full-price sales, partially offset by higher product costs largely due to increased freight and logistics costs. Selling and administrative expense increased due to higher demand creation and operating overhead expense. Higher demand creation expense was driven by higher advertising and marketing expense. Higher operating overhead expense was primarily due to higher wage-related expenses and higher strategic technology investments. 
 
 GREATER CHINA 
 
 THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28, 
 (Dollars in millions) 2022 2021 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES 2022 2021 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES 
 Revenues by: 
 Footwear $ 1,554 $ 1,614 -4 % -6 % $ 4,238 $ 4,432 -4 % -9 % 
 Apparel 548 616 -11 % -13 % 1,588 1,775 -11 % -15 % 
 Equipment 58 49 18 % 15 % 160 150 7 % 1 % 
 TOTAL REVENUES $ 2,160 $ 2,279 -5 % -8 % $ 5,986 $ 6,357 -6 % -11 % 
 Revenues by: 
 Sales to Wholesale Customers $ 1,241 $ 1,269 -2 % -5 % $ 3,251 $ 3,392 -4 % -9 % 
 Sales through NIKE Direct 919 1,010 -9 % -11 % 2,735 2,965 -8 % -13 % 
 TOTAL REVENUES $ 2,160 $ 2,279 -5 % -8 % $ 5,986 $ 6,357 -6 % -11 % 
 EARNINGS BEFORE INTEREST AND TAXES $ 784 $ 973 -19 % $ 2,054 $ 2,552 -20 % 

 THIRD QUARTER OF FISCAL 2022 COMPARED TO THIRD QUARTER OF FISCAL 2021 
 On a currency-neutral basis, Greater China revenues for the third quarter of fiscal 2022 decreased 8%, reflecting impacts from supply chain constraints, government restrictions due to COVID-19 as well as ongoing marketplace dynamics. The decrease in revenues was primarily due to lower revenues in Men’s. NIKE Direct revenues decreased 11% due to digital sales declines of 19%, comparable store sales declines of 10%, in part due to reduced physical retail traffic as a result of government restrictions due to COVID-19 as well as ongoing marketplace dynamics, partially offset by the addition of new stores. 
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 Currency-neutral footwear revenues decreased 6%, driven primarily by lower revenues in Men's and Women's, partially offset by growth in the Jordan Brand. Unit sales of footwear increased 2%, while lower ASP per pair reduced footwear revenues by approximately 8 percentage points, driven by lower NIKE Direct and full-price ASPs. 
 Currency-neutral apparel revenues decreased 13%, due primarily to lower revenues in Men's. Unit sales of apparel decreased 3%, while lower ASP per unit reduced apparel revenues by approximately 10 percentage points, primarily due to lower NIKE Direct and full-price ASPs. 
 Reported EBIT decreased 19% due to lower revenues, higher selling and administrative expense and gross margin contraction. Gross margin decreased approximately 140 basis points reflecting lower full-price ASP, net of discounts, and lower NIKE Direct margins, partially offset by favorable changes in standard foreign currency exchange rates and lower product costs due to favorable product mix. Selling and administrative expense increased due to higher demand creation and operating overhead expense. Growth in demand creation expense was primarily due to higher advertising and marketing expense. Operating overhead expense increased largely due to higher strategic technology investments and higher wage-related costs. 
 FIRST NINE MONTHS OF FISCAL 2022 COMPARED TO FIRST NINE MONTHS OF FISCAL 2021 
 On a currency-neutral basis, Greater China revenues for the first nine months of fiscal 2022 decreased 11%, reflecting impacts from supply chain constraints, government restrictions due to COVID-19 as well as ongoing marketplace dynamics. The decrease in revenues was primarily due to lower revenues in Men’s and Women's. NIKE Direct revenues decreased 13% due to digital sales declines of 19%, comparable store sales declines of 11%, in part due to reduced physical retail traffic as a result of government restrictions due to COVID-19 as well as ongoing marketplace dynamics, partially offset by the addition of new stores. 
 Currency-neutral footwear revenues decreased 9%, driven primarily by lower revenues in Men's and Women's. Unit sales of footwear decreased 5%, while lower ASP per pair reduced footwear revenues by approximately 4 percentage points, driven by lower NIKE Direct and full-price ASPs. 
 Currency-neutral apparel revenues decreased 15%, due primarily to lower revenues in Men's and Women's. Unit sales of apparel decreased 8%, while lower ASP per unit reduced apparel revenues by approximately 7 percentage points, primarily due to lower NIKE Direct and full-price ASPs, reflecting higher discounts. 
 Reported EBIT decreased 20% due to lower revenues, higher selling and administrative expense and gross margin contraction. Gross margin decreased approximately 190 basis points reflecting lower full-price ASP, net of discounts, lower NIKE Direct margins and higher other costs, primarily due to higher warehousing and freight. This activity was partially offset by favorable changes in standard foreign currency exchange rates and lower product costs due to favorable product mix. Selling and administrative expense increased due to higher demand creation and operating overhead expense. Growth in demand creation expense was primarily due to higher advertising and marketing expense. Operating overhead expense increased largely due to higher wage-related costs and higher strategic technology investments. 
 
 ASIA PACIFIC & LATIN AMERICA 
 
 THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28, 
 (Dollars in millions) 2022 2021 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES 2022 2021 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES 
 Revenues by: 
 Footwear $ 1,005 $ 903 11 % 20 % $ 2,914 $ 2,652 10 % 13 % 
 Apparel 394 365 8 % 16 % 1,181 1,098 8 % 10 % 
 Equipment 62 47 32 % 44 % 178 135 32 % 36 % 
 TOTAL REVENUES $ 1,461 $ 1,315 11 % 19 % $ 4,273 $ 3,885 10 % 13 % 
 Revenues by: 
 Sales to Wholesale Customers $ 860 $ 846 2 % 9 % $ 2,571 $ 2,479 4 % 6 % 
 Sales through NIKE Direct 601 469 28 % 39 % 1,702 1,406 21 % 25 % 
 TOTAL REVENUES $ 1,461 $ 1,315 11 % 19 % $ 4,273 $ 3,885 10 % 13 % 
 EARNINGS BEFORE INTEREST AND TAXES $ 478 $ 408 17 % $ 1,347 $ 1,112 21 % 

 As discussed previously, our NIKE Brand business in Brazil transitioned to a distributor operating model during fiscal 2021 and our NIKE Brand businesses in Argentina, Chile and Uruguay have remained classified as held-for-sale. The impacts of closing the Brazil transaction as well as classifying the Argentina, Chile, and Uruguay entities as held-for-sale in fiscal 2020 are included within Corporate and are not reflected in the APLA operating segment results. For more information see Note 13 — Acquisitions and Divestitures within the accompanying Notes to the Unaudited Condensed Consolidated Financial Statements. 
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 THIRD QUARTER OF FISCAL 2022 COMPARED TO THIRD QUARTER OF FISCAL 2021 
 On a currency-neutral basis, APLA revenues increased 19% for the third quarter of fiscal 2022. The increase was due to higher revenues across nearly all territories, led by Korea, Mexico and SOCO (which comprises Argentina, Chile and Uruguay), which increased 23%, 51% and 43%, respectively. Revenues increased primarily due to higher revenues in Women's and Men’s. NIKE Direct revenues increased 39%, primarily due to digital sales growth of 61%, comparable store sales growth of 17%, in part due to improved physical retail traffic, and the addition of new stores. 
 Currency-neutral footwear revenues increased 20%, due primarily to higher revenues in Women's. Unit sales of footwear increased 9%, while higher ASP per pair contributed approximately 11 percentage points of footwear revenue growth. Higher ASP per pair was driven by higher NIKE Direct ASP and the favorable impact of growth in our NIKE Direct business, as well as higher full-price and off-price ASPs. Higher ASPs, in part, reflect inflationary conditions in our SOCO territory. 
 Currency-neutral apparel revenues increased 16%, due primarily to higher revenues in Men's. Unit sales of apparel increased 15%, while higher ASP per unit contributed approximately 1 percentage point of apparel revenue growth, driven by higher off-price ASP and a higher mix of full-price sales, partially offset by lower full-price ASP. Higher ASPs, in part, reflect inflationary conditions in our SOCO territory. 
 Reported EBIT increased 17% for the third quarter of fiscal 2022, as higher revenues and gross margin expansion more than offset higher selling and administrative expense. Gross margin increased approximately 230 basis points primarily due to favorable changes in standard foreign currency exchange rates, higher margins and the favorable impact of growth in our NIKE Direct business, as well as lower product costs and a higher mix of full-price sales. This activity was partially offset by lower full-price ASP, net of discounts. Selling and administrative expense increased due to higher operating overhead and demand creation expense. Higher operating overhead expense was primarily due to an increase in NIKE Direct strategic technology investments, as well as higher wage-related expenses. The increase in demand creation expense was primarily due to higher digital marketing investments to support heightened digital demand. 
 FIRST NINE MONTHS OF FISCAL 2022 COMPARED TO FIRST NINE MONTHS OF FISCAL 2021 
 On a currency-neutral basis, APLA revenues increased 13% for the first nine months of fiscal 2022. The increase was due to higher revenues across nearly all territories, driven by SOCO, Mexico and Korea, which increased 61%, 31% and 13%, respectively. Revenues increased primarily due to higher revenues in Men’s and Women's. NIKE Direct revenues increased 25%, primarily due to digital sales growth of 48% and comparable store sales growth of 10%, partially offset by store closures. 
 Currency-neutral footwear revenues increased 13%, due primarily to higher revenues in Women's. Unit sales of footwear decreased 1%, while higher ASP per pair contributed approximately 14 percentage points of footwear revenue growth. Higher ASP per pair was driven by higher NIKE Direct ASP, higher full-price ASP, reflecting lower discounts, higher off-price ASP and a higher mix of full-price sales. Higher ASPs, in part, reflect inflationary conditions in our SOCO territory. 
 Currency-neutral apparel revenues increased 10%, due primarily to higher revenues in Men's. Unit sales of apparel remained flat, while higher ASP per unit contributed approximately 10 percentage points of apparel revenue growth, driven by higher NIKE Direct, full-price and off-price ASPs, as well as a higher mix of full-price sales. Higher ASPs, in part, reflect inflationary conditions in our SOCO territory. 
 Reported EBIT increased 21% for the first nine months of fiscal 2022, as higher revenues and gross margin expansion more than offset higher selling and administrative expense. Gross margin increased approximately 420 basis points primarily due to higher margins and the favorable impact of growth in our NIKE Direct business, lower product costs, lower other costs, a higher mix of full-price sales and higher full-price ASP due to lower discounts. The decrease in other costs was primarily due to the favorable rate impact of fixed supply chain costs on a higher volume of wholesale shipments, as well as lower inventory obsolescence. Selling and administrative expense increased due to higher demand creation and operating overhead expense. Higher demand creation expense was primarily due to higher digital marketing investments to support heightened digital demand. The increase in operating overhead expense was primarily due to an increase in NIKE Direct strategic technology investments, lower bad debt recoveries and higher wage-related expenses. 
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 GLOBAL BRAND DIVISIONS 
 
 THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28, 
 (Dollars in millions) 
 2022 2021 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES 2022 2021 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES 
 Revenues $ 41 $ 6 583 % 561 % $ 54 $ 18 200 % 206 % 
 Earnings (Loss) Before Interest and Taxes $ (975) $ (852) -14 % $ (3,033) $ (2,546) -19 % 

 Global Brand Divisions primarily represent demand creation and operating overhead expense, including product creation and design expenses that are centrally managed for the NIKE Brand, as well as costs associated with NIKE Direct global digital operations and enterprise technology. Global Brand Divisions revenues include NIKE Brand licensing and other miscellaneous revenues that are not part of a geographic operating segment. 
 THIRD QUARTER OF FISCAL 2022 COMPARED TO THIRD QUARTER OF FISCAL 2021 
 Global Brand Divisions' loss before interest and taxes increased 14% for the third quarter of fiscal 2022 driven by higher operating overhead and higher demand creation expense. Higher operating overhead expense was primarily due to an increase in strategic technology investments. Higher demand creation expense was primarily due to higher advertising and marketing expense as well as higher digital marketing investments to support heightened digital demand. 
 FIRST NINE MONTHS OF FISCAL 2022 COMPARED TO FIRST NINE MONTHS OF FISCAL 2021 
 Global Brand Divisions' loss before interest and taxes increased 19% for the first nine months of fiscal 2022 driven by higher operating overhead and higher demand creation expense. Higher operating overhead expense was primarily due to an increase in strategic technology investments as well as continued investment in digital capabilities. Higher demand creation expense was primarily due to higher advertising and marketing expense. 
 
 CONVERSE 
 
 THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28, 
 (Dollars in millions) 
 2022 2021 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES 2022 2021 % CHANGE % CHANGE EXCLUDING CURRENCY CHANGES 
 Revenues by: 
 Footwear $ 503 $ 513 -2 % 1 % $ 1,555 $ 1,442 8 % 7 % 
 Apparel 29 28 4 % 2 % 87 82 6 % 3 % 
 Equipment 7 6 17 % 6 % 21 22 -5 % -11 % 
 Other (1) 
 28 23 22 % 25 % 90 63 43 % 44 % 
 TOTAL REVENUES $ 567 $ 570 -1 % 2 % $ 1,753 $ 1,609 9 % 8 % 
 Revenues by: 
 Sales to Wholesale Customers $ 303 $ 366 -17 % -14 % $ 975 $ 998 -2 % -3 % 
 Sales through Direct to Consumer 236 181 30 % 32 % 688 548 26 % 25 % 
 Other (1) 
 28 23 22 % 25 % 90 63 43 % 44 % 
 TOTAL REVENUES $ 567 $ 570 -1 % 2 % $ 1,753 $ 1,609 9 % 8 % 
 EARNINGS BEFORE INTEREST AND TAXES $ 168 $ 150 12 % $ 504 $ 405 24 % 

 (1) Other revenues consist of territories serviced by third-party licensees who pay royalties to Converse for the use of its registered trademarks and other intellectual property rights. We do not own the Converse trademarks in Japan and accordingly do not earn revenues in Japan. 
 THIRD QUARTER OF FISCAL 2022 COMPARED TO THIRD QUARTER OF FISCAL 2021 
 On a currency-neutral basis, Converse revenues increased 2% for the third quarter of fiscal 2022 as revenue growth in North America and Western Europe was partially offset by declines in Asia. Wholesale revenues decreased 14%, primarily due to ongoing marketplace dynamics in China and global supply chain constraints, while direct to consumer revenues increased 32%. Combined unit sales within the wholesale and direct to consumer channels decreased 10%, while ASP increased 11%, driven by higher full price ASP, due to lower discounts and growth in direct to consumer. 
 Reported EBIT increased 12%, driven by gross margin expansion, partially offset by higher selling and administrative expense. Gross margin increased approximately 410 basis points as decreased promotions and higher margins in direct to consumer, 
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 favorable changes in standard foreign currency exchange rates, and higher ASP net of discounts were partially offset by higher product costs due to increased freight and logistics costs. Selling and administrative expense increased due to higher operating overhead expense as a result of an increase in professional services costs. Demand creation expense was relatively flat compared to the prior year. 
 FIRST NINE MONTHS OF FISCAL 2022 COMPARED TO FIRST NINE MONTHS OF FISCAL 2021 
 On a currency-neutral basis, Converse revenues increased 8% for the first nine months of fiscal 2022 as revenue growth in North America, Western Europe and licensee markets more than offset declines in Asia. Wholesale revenues decreased 3%, primarily due to ongoing marketplace dynamics in China and global supply chain constraints, while direct to consumer revenues increased 25%. Combined unit sales within the wholesale and direct to consumer channels decreased 5%, while ASP increased 11%, driven by higher full price ASP, due to lower discounts and growth in direct to consumer. 
 Reported EBIT increased 24%, driven by higher revenues and gross margin expansion, partially offset by higher selling and administrative expense. Gross margin increased approximately 330 basis points as higher margins in direct to consumer, favorable changes in standard foreign currency exchange rates, growth in licensee revenues, and higher ASP were slightly offset by higher product costs due to increased freight, duty and logistics costs. Selling and administrative expense increased due to higher operating overhead and demand creation expense. Operating overhead expense increased primarily due to an increase in professional services costs, while demand creation expense increased primarily due to higher advertising and marketing expense. 
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 CORPORATE 
 
 THREE MONTHS ENDED FEBRUARY 28, NINE MONTHS ENDED FEBRUARY 28, 
 (Dollars in millions) 
 2022 2021 % CHANGE 2022 2021 % CHANGE 
 Revenues $ (19) $ 14 — $ (56) $ 53 — 
 Earnings (Loss) Before Interest and Taxes $ (412) $ (482) 15 % $ (1,460) $ (1,697) 14 % 

 Corporate revenues primarily consist of foreign currency hedge gains and losses related to revenues generated by entities within the NIKE Brand geographic operating segments and Converse, but managed through our central foreign exchange risk management program. 
 The Corporate loss before interest and taxes primarily consists of unallocated general and administrative expenses, including expenses associated with centrally managed departments; depreciation and amortization related to our corporate headquarters; unallocated insurance, benefit and compensation programs, including stock-based compensation; and certain foreign currency gains and losses. 
 In addition to the foreign currency gains and losses recognized in Corporate revenues, foreign currency results in Corporate include gains and losses resulting from the difference between actual foreign currency exchange rates and standard rates used to record non-functional currency denominated product purchases within the NIKE Brand geographic operating segments and Converse; related foreign currency hedge results; conversion gains and losses arising from remeasurement of monetary assets and liabilities in non-functional currencies; and certain other foreign currency derivative instruments. 
 THIRD QUARTER OF FISCAL 2022 COMPARED TO THIRD QUARTER OF FISCAL 2021 
 Corporate's loss before interest and taxes decreased $70 million for the third quarter of fiscal 2022, primarily due to the following: 
 • a favorable change in net foreign currency gains and losses of $87 million related to the remeasurement of monetary assets and liabilities denominated in non-functional currencies and the impact of certain foreign currency derivative instruments, reported as a component of consolidated Other (income) expense, net; 
 • an unfavorable change of $58 million related to the difference between actual foreign currency exchange rates and standard foreign currency exchange rates assigned to the NIKE Brand geographic operating segments and Converse, net of hedge gains and losses; these results are reported as a component of consolidated gross margin; and 
 • a favorable change of $41 million, primarily due to higher restructuring-related costs related to our organizational realignment in the prior year. 
 FIRST NINE MONTHS OF FISCAL 2022 COMPARED TO FIRST NINE MONTHS OF FISCAL 2021 
 Corporate's loss before interest and taxes decreased $237 million for the first nine months of fiscal 2022, primarily due to the following: 
 • a favorable change of $206 million largely due to higher restructuring-related costs associated with our organizational realignment as well as a net incremental charge related to our planned, strategic distributor partnership transition within APLA, both of which occurred in the prior year, partially offset by higher-wage related expenses in the first nine months of fiscal 2022; 
 • a favorable change in net foreign currency gains and losses of $125 million related to the remeasurement of monetary assets and liabilities denominated in non-functional currencies and the impact of certain foreign currency derivative instruments, reported as a component of consolidated Other (income) expense, net; and 
 • an unfavorable change of $94 million related to the difference between actual foreign currency exchange rates and standard foreign currency exchange rates assigned to the NIKE Brand geographic operating segments and Converse, net of hedge gains and losses; these results are reported as a component of consolidated gross margin. 
 
 FOREIGN CURRENCY EXPOSURES AND HEDGING PRACTICES 
 OVERVIEW 
 As a global company with significant operations outside the United States, in the normal course of business we are exposed to risk arising from changes in currency exchange rates. Our primary foreign currency exposures arise from the recording of transactions denominated in non-functional currencies and the translation of foreign currency denominated results of operations, financial position and cash flows into U.S. Dollars. 
 Our foreign exchange risk management program is intended to lessen both the positive and negative effects of currency fluctuations on our consolidated results of operations, financial position and cash flows. We manage global foreign exchange risk 
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 centrally on a portfolio basis to address those risks material to NIKE, Inc. Our hedging policy is designed to partially or entirely offset the impact of exchange rate changes on the underlying net exposures being hedged. Where exposures are hedged, our program has the effect of delaying the impact of exchange rate movements on our Unaudited Condensed Consolidated Financial Statements; the length of the delay is dependent upon hedge horizons. We do not hold or issue derivative instruments for trading or speculative purposes. As of and for the three and nine months ended February 28, 2022, there have been no material changes to the Company's hedging program or strategy from what was disclosed within the Annual Report on Form 10-K. 
 Refer to Note 4 — Fair Value Measurements and Note 9 — Risk Management and Derivatives in the accompanying Notes to the Unaudited Condensed Consolidated Financial Statements for additional description of outstanding derivatives at each reported period end. For additional information about our Foreign Currency Exposures and Hedging Practices refer to Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the fiscal year ended May 31, 2021. 
 TRANSACTIONAL EXPOSURES 
 We conduct business in various currencies and have transactions which subject us to foreign currency risk. Our most significant transactional foreign currency exposures are: 
 • Product Costs — Product purchases denominated in currencies other than the functional currency of the transacting entity and factory input costs from the foreign currency adjustments program with certain factories. 
 • Non-Functional Currency Denominated External Sales — A portion of our NIKE Brand and Converse revenues associated with European operations are earned in currencies other than the Euro (e.g., the British Pound) but are recognized at a subsidiary that uses the Euro as its functional currency. These sales generate a foreign currency exposure. 
 • Other Costs — Non-functional currency denominated costs, such as endorsement contracts, also generate foreign currency risk, though to a lesser extent. 
 • Non-Functional Currency Denominated Monetary Assets and Liabilities — Our global subsidiaries have various monetary assets and liabilities, primarily receivables and payables, including intercompany receivables and payables, denominated in currencies other than their functional currencies. These balance sheet items are subject to remeasurement which may create fluctuations in Other (income) expense, net within our consolidated results of operations. 
 MANAGING TRANSACTIONAL EXPOSURES 
 Transactional exposures are managed on a portfolio basis within our foreign currency risk management program. We manage these exposures by taking advantage of natural offsets and currency correlations that exist within the portfolio and may also elect to use currency forward and option contracts to hedge the remaining effect of exchange rate fluctuations on probable forecasted future cash flows, including certain product cost exposures, non-functional currency denominated external sales and other costs described above. Generally, these are accounted for as cash flow hedges, except for hedges of the embedded derivative components of the product cost exposures and other contractual agreements. 
 Certain currency forward contracts used to manage the foreign exchange exposure of non-functional currency denominated monetary assets and liabilities subject to remeasurement and embedded derivative contracts are not formally designated as hedging instruments and are recognized in Other (income) expense, net. 
 TRANSLATIONAL EXPOSURES 
 Many of our foreign subsidiaries operate in functional currencies other than the U.S. Dollar. 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. Dollars for consolidated reporting. The translation of foreign subsidiaries' non-U.S. Dollar denominated balance sheets into U.S. Dollars for consolidated reporting results in a cumulative translation adjustment to Accumulated other comprehensive income (loss) within Shareholders' equity. The impact of foreign exchange rate fluctuations on the translation of our consolidated Revenues was a detriment of approximately $280 million and a benefit $165 million for the three and nine months ended February 28, 2022, respectively, and a benefit of approximately $357 million and $430 million for the three and nine months ended February 28, 2021, respectively. The impact of foreign exchange rate fluctuations on the translation of our Income before income taxes was a detriment of approximately $84 million and a benefit of $45 million for the three and nine months ended February 28, 2022, respectively, and a benefit of approximately $109 million and $143 million for the three and nine months ended February 28, 2021, respectively. 
 Management generally identifies hyper-inflationary markets as those markets whose cumulative inflation rate over a three-year period exceeds 100%. Management has concluded our Argentina subsidiary within our APLA operating segment is operating in a hyper-inflationary market. As a result, beginning in the second quarter of fiscal 2019, the functional currency of our Argentina subsidiary changed from the local currency to the U.S. Dollar. As of and for the three and nine months ended February 28, 2022, 
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 this change did not have a material impact on our results of operations or financial condition, and we do not anticipate it will have a material impact in future periods based on current rates. 
 MANAGING TRANSLATIONAL EXPOSURES 
 To minimize the impact of translating foreign currency denominated revenues and expenses into U.S. Dollars for consolidated reporting, certain foreign subsidiaries use excess cash to purchase U.S. Dollar denominated available-for-sale investments. The variable future cash flows associated with the purchase and subsequent sale of these U.S. Dollar denominated investments at non-U.S. Dollar functional currency subsidiaries creates a foreign currency exposure that qualifies for hedge accounting under U.S. GAAP. We utilize forward contracts and/or options to mitigate the variability of the forecasted future purchases and sales of these U.S. Dollar investments. 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. Hedges of the purchase of U.S. Dollar denominated available-for-sale investments are accounted for as cash flow hedges. 
 We estimate the combination of 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 (income) expense, net had a favorable impact of approximately $3 million and $170 million on our Income before income taxes for the three and nine months ended February 28, 2022, respectively. 
 
 LIQUIDITY AND CAPITAL RESOURCES 
 CASH FLOW ACTIVITY 
 Cash provided (used) by operations was an inflow of $4,037 million for the first nine months of fiscal 2022, compared to $4,645 million for the first nine months of fiscal 2021. Net income, adjusted for non-cash items, generated $5,387 million of operating cash inflow for the first nine months of fiscal 2022, compared to $4,840 million for the first nine months of fiscal 2021. The net change in working capital and other assets and liabilities resulted in a decrease to Cash provided (used) by operations of $1,350 million for the first nine months of fiscal 2022 compared to $195 million for the first nine months of fiscal 2021. For the first nine months of fiscal 2022, the net change in working capital compared to the prior year was primarily driven by unfavorable impacts to Cash provided (used) by operations from Inventories of $1,546 million, partially offset by favorable impacts from Accounts receivable of $1,303 million. These changes are, in part, due to supply chain constraints, which caused higher levels of in-transit inventory and therefore a lower supply of available inventory to meet consumer demand. 
 Cash provided (used) by investing activities was an outflow of $1,711 million for the first nine months of fiscal 2022, compared to $3,987 million for the first nine months of fiscal 2021, primarily driven by the net change in short-term investments. For the first nine months of fiscal 2022, the net change in short-term investments (including sales, maturities and purchases) resulted in a cash outflow of $1,156 million compared to a cash outflow of $3,650 million for the first nine months of fiscal 2021. 
 Cash provided (used) by financing activities was an outflow of $3,456 million for the first nine months of fiscal 2022 compared to $612 million for the first nine months of fiscal 2021. The increased outflow in the first nine months of fiscal 2022 was driven by our resumption of the share repurchase program in the fourth quarter of fiscal 2021, resulting in $2,923 million of share repurchases for the first nine months of fiscal 2022 compared to no share repurchases in the first nine months of fiscal 2021. 
 During the first nine months of fiscal 2022, we repurchased 18.9 million shares of NIKE's Class B Common Stock for $2.9 billion (an average price of $155.28 per share) under the four-year, $15 billion share repurchase program approved by the Board of Directors in June 2018. As of February 28, 2022, we had repurchased 68.9 million shares at a cost of approximately $7.6 billion (an average price of $110.31 per share) under this program. We continue to expect funding of share repurchases will come from operating cash flows and excess cash. The timing and the amount of share repurchases will be dictated by our capital needs and stock market conditions. 
 CAPITAL RESOURCES 
 On July 23, 2019, we filed a shelf registration statement (the “Shelf”) with the U.S. Securities and Exchange Commission (SEC) which permits us to issue an unlimited amount of debt securities from time to time. The Shelf expires on July 23, 2022. 
 As of February 28, 2022, our committed credit facilities were unchanged from the information previously reported on Form 10-K for the fiscal year ended May 31, 2021. We currently have long-term debt ratings of AA- and A1 from Standard and Poor's Corporation and Moody's Investor Services, respectively. Any changes to these ratings could result in interest rate and facility fee changes. As of February 28, 2022, we were in full compliance with the covenants under our facilities and believe it is unlikely we will fail to meet any of the covenants in the foreseeable future. As of February 28, 2022 and May 31, 2021, no amounts were outstanding under our committed credit facilities. 
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 On March 11, 2022, subsequent to the end of the third quarter of fiscal 2022, we entered into a 364-day committed credit facility agreement with a syndicate of banks which provides for up to $1 billion of borrowings, with the option to increase borrowings up to $1.5 billion in total with lender approval. The facility matures on March 10, 2023, with an option to extend the maturity date an additional 364 days. This facility replaces the prior $1 billion 364-day credit facility agreement entered into on March 15, 2021, which would have matured on March 14, 2022. Refer to Note 5 — Short-Term Borrowings and Credit Lines for more information. 
 On March 11, 2022, we also entered into a five-year committed credit facility agreement with a syndicate of banks which provides for up to $2 billion of borrowings, with the option to increase borrowings up to $3 billion in total with lender approval. The facility matures on March 11, 2027, with options to extend the maturity date up to an additional two years. This facility replaces the prior $2 billion five-year credit facility agreement entered into on August 16, 2019, which would have matured on August 16, 2024. Refer to Note 5 — Short-Term Borrowings and Credit Lines for more information. 
 Liquidity was also provided by our $3 billion commercial paper program. As of and for the three months ended February 28, 2022, we did not have any borrowings outstanding under our $3 billion program. We may issue commercial paper or other debt securities depending on general corporate needs. We currently have short-term debt ratings of A1+ and P1 from Standard and Poor's Corporation and Moody's Investor Services, respectively. 
 To date, in fiscal 2022, we have not experienced difficulty accessing the credit markets; however, future volatility in the capital markets may increase costs associated with issuing commercial paper or other debt instruments or affect our ability to access those markets. 
 As of February 28, 2022, we had cash, cash equivalents and short-term investments totaling $13.5 billion, primarily consisting of commercial paper, corporate notes, deposits held at major banks, money market funds, U.S. Treasury obligations and other investment grade fixed-income securities. Our fixed-income investments are exposed to both credit and interest rate risk. All of our investments are investment grade to minimize our credit risk. While individual securities have varying durations, as of February 28, 2022, the weighted average days to maturity of our cash equivalents and short-term investments portfolio was 59 days. 
 We believe that existing cash, cash equivalents, short-term investments and cash generated by operations, together with access to external sources of funds as described above, will be sufficient to meet our domestic and foreign capital needs in the foreseeable future. 
 We utilize a variety of tax planning and financing strategies to manage our worldwide cash and deploy funds to locations where they are needed. We indefinitely reinvest a significant portion of our foreign earnings, and our current plans do not demonstrate a need to repatriate these earnings. Should we require additional capital in the United States, we may determine to repatriate indefinitely reinvested foreign funds or raise capital in the United States through debt. Given our existing structure, if we were to repatriate indefinitely reinvested foreign earnings, we would be required to accrue and pay withholding taxes in certain foreign jurisdictions. 
 OFF-BALANCE SHEET ARRANGEMENTS 
 As of February 28, 2022, we did not have any off-balance sheet arrangements that have, or are reasonably likely to have, a material effect on our current or future financial condition, results of operations, liquidity, capital expenditures or capital resources. 
 CONTRACTUAL OBLIGATIONS 
 There have been no significant changes to the contractual obligations reported in our Annual Report on Form 10-K for the fiscal year ended May 31, 2021. 
 
 NEW ACCOUNTING PRONOUNCEMENTS 
 There have been no material changes in recently issued or adopted accounting standards from those disclosed in our Annual Report on Form 10-K for the fiscal year ended May 31, 2021. 
 
 CRITICAL ACCOUNTING POLICIES 
 Our discussion and analysis of our financial condition and results of operations are based upon our Unaudited Condensed Consolidated Financial Statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. 
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 We believe that the estimates, assumptions and judgments involved in the accounting policies described in the “Management's Discussion and Analysis of Financial Condition and Results of Operations” section of our most recent Annual Report on Form 10-K have the greatest potential impact on our financial statements, so we consider these to be our critical accounting policies. Actual results could differ from the estimates we use in applying our critical accounting policies. We are not currently aware of any reasonably likely events or circumstances that would result in materially different amounts being reported. 
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 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 
 There have been no material changes from the information previously reported under Part II, Item 7A of our Annual Report on Form 10-K for the fiscal year ended May 31, 2021.
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.
NIKE, Inc. 10-Q

Item 2. Management’s Discussion and Analysis
