Book Value Outstanding As of May 31, | |||||||||||||||||
Scheduled Maturity (Dollars in millions) | Original Principal | Interest Rate | Interest Payments | 2013 | 2012 | ||||||||||||
Corporate Bond Payables:(4) | |||||||||||||||||
July 23, 2012(1) | $ | 25 | 5.66 | % | Semi-Annually | $ | — | $ | 25 | ||||||||
August 7, 2012(1) | $ | 15 | 5.40 | % | Semi-Annually | — | 15 | ||||||||||
October 1, 2013 | $ | 50 | 4.70 | % | Semi-Annually | 50 | 50 | ||||||||||
October 15, 2015(1) | $ | 100 | 5.15 | % | Semi-Annually | 111 | 115 | ||||||||||
May 1, 2023(5) | $ | 500 | 2.25 | % | Semi-Annually | 499 | — | ||||||||||
May 1, 2043(5) | $ | 500 | 3.63 | % | Semi-Annually | 499 | — | ||||||||||
Promissory Notes:(2) | |||||||||||||||||
April 1, 2017 | $ | 40 | 6.20 | % | Monthly | 40 | — | ||||||||||
January 1, 2018 | $ | 19 | 6.79 | % | Monthly | 19 | — | ||||||||||
Japanese Yen Notes: | |||||||||||||||||
August 20, 2001 through November 20, 2020(3) | ¥ | 9,000 | 2.60 | % | Quarterly | 34 | 50 | ||||||||||
August 20, 2001 through November 20, 2020(3) | ¥ | 4,000 | 2.00 | % | Quarterly | 15 | 22 | ||||||||||
Total | 1,267 | 277 | |||||||||||||||
Less current maturities | 57 | 49 | |||||||||||||||
TOTAL LONG-TERM DEBT | $ | 1,210 | $ | 228 | |||||||||||||
(1) | The Company has entered into interest rate swap agreements whereby the Company receives fixed interest payments at the same rate as the note and pays variable interest payments based on the six-month LIBOR plus a spread. The swaps have the same notional amount and maturity date as the corresponding note. At May 31, 2013, the interest rates payable on these swap agreements ranged from approximately 0.3% to 0.4%. |
(2) | The Company assumed a total of $59 million in bonds payable on May 30, 2013 as part of its agreement to purchase certain Corporate properties, which was treated as a non-cash financing transaction. The property serves as collateral for the debt. The purchase of these properties was accounted for as a business combination where the total consideration of $85 million was allocated to the land and buildings acquired; no other tangible or intangible assets or liabilities resulted from the purchase. The bonds mature in 2017 and 2018 and the Company does not have the ability to re-negotiate the terms of the debt agreements and would incur significant financial penalties if the notes are paid off prior to maturity. |
(3) | NIKE Logistics YK assumed a total of ¥13.0 billion in loans as part of its agreement to purchase a distribution center in Japan, which serves as collateral for the loans. These loans mature in equal quarterly installments during the period August 20, 2001 through November 20, 2020. |
(4) | Senior unsecured obligations rank equally with our other unsecured and unsubordinated indebtedness. |
(5) | The bonds carry a make whole call provision and are redeemable at any time prior to maturity. The bonds also feature a par call provision payable 3 months and 6 months prior to the scheduled maturity date for the bonds maturing on May 1, 2023 and May 1, 2043, respectively. |