UNITED STATESSECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q(Mark One)

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the Quarterly Period Ended February 28, 2018

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the transition period from to

Commission File Number: 001-10635

NIKE, Inc.(Exact name of registrant as specified in its charter)

OREGON 93-0584541

(State or other jurisdiction ofincorporation or organization) (I.R.S. Employer

Identification No.)

One Bowerman Drive,Beaverton, Oregon 97005-6453

(Address of principal executive offices) (Zip Code)

Registrant ’ s telephone number, including area code: (503) 671-6453

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or forsuch shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑  No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuantto Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See thedefinitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☑ Accelerated filer ☐ Smaller reporting company ☐

Non-accelerated filer ☐ (Do not check if a smaller reporting company) Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accountingstandards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐  No ☑

Shares of Common Stock outstanding as of April 2, 2018 were:

Class A 329,065,752Class B 1,282,693,640 1,611,759,392

Table of Contents

NIKE, INC.FORM 10-QTable of Contents

PART I - FINANCIAL INFORMATION PageITEM 1. Financial Statements 3 Unaudited Condensed Consolidated Balance Sheets 3 Unaudited Condensed Consolidated Statements of Income 4 Unaudited Condensed Consolidated Statements of Comprehensive Income 5 Unaudited Condensed Consolidated Statements of Cash Flows 6 Notes to the Unaudited Condensed Consolidated Financial Statements 7ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 22ITEM 3. Quantitative and Qualitative Disclosures about Market Risk 38ITEM 4. Controls and Procedures 38 PART II - OTHER INFORMATION ITEM 1. Legal Proceedings 40ITEM 1A. Risk Factors 40ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 40ITEM 6. Exhibits 41 Signatures 42

 

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PART I - FINANCIAL INFORMATIONITEM 1. Financial Statements

NIKE, Inc. Unaudited Condensed Consolidated Balance Sheets

February 28, May 31,

(In millions) 2018 2017

ASSETS

Current assets:

Cash and equivalents $ 3,662 $ 3,808

Short-term investments 1,089 2,371

Accounts receivable, net 3,792 3,677

Inventories 5,366 5,055

Prepaid expenses and other current assets 1,446 1,150

Total current assets 15,355 16,061

Property, plant and equipment, net 4,298 3,989

Identifiable intangible assets, net 282 283

Goodwill 139 139

Deferred income taxes and other assets 2,478 2,787

TOTAL ASSETS $ 22,552 $ 23,259

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Current portion of long-term debt $ 6 $ 6

Notes payable 11 325

Accounts payable 1,961 2,048

Accrued liabilities 3,727 3,011

Income taxes payable 78 84

Total current liabilities 5,783 5,474

Long-term debt 3,469 3,471

Deferred income taxes and other liabilities 3,518 1,907

Commitments and contingencies (Note 12)

Redeemable preferred stock — —

Shareholders’ equity:

Common stock at stated value:

Class A convertible — 329 and 329 shares outstanding — —

Class B — 1,290 and 1,314 shares outstanding 3 3

Capital in excess of stated value 9,325 8,638

Accumulated other comprehensive loss (624) (213)

Retained earnings 1,078 3,979

Total shareholders’ equity 9,782 12,407

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 22,552 $ 23,259The accompanying Notes to the Unaudited Condensed Consolidated Financial Statements are an integral part of this statement.

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NIKE, Inc. Unaudited Condensed Consolidated Statements of Income

Three Months Ended February 28, Nine Months Ended February 28,

(In millions, except per share data) 2018 2017 2018 2017

Revenues $ 8,984 $ 8,432 $ 26,608 $ 25,673

Cost of sales 5,046 4,682 15,030 14,184

Gross profit 3,938 3,750 11,578 11,489

Demand creation expense 862 749 2,594 2,552

Operating overhead expense 1,905 1,747 5,797 5,346

Total selling and administrative expense 2,767 2,496 8,391 7,898

Interest expense (income), net 13 19 42 41

Other (income) expense, net (1) (88) 35 (168)

Income before income taxes 1,159 1,323 3,110 3,718

Income tax expense 2,080 182 2,314 486

NET (LOSS) INCOME $ (921) $ 1,141 $ 796 $ 3,232

(Loss) earnings per common share:

Basic $ (0.57) $ 0.69 $ 0.49 $ 1.95

Diluted $ (0.57) $ 0.68 $ 0.48 $ 1.91

Dividends declared per common share $ 0.20 $ 0.18 $ 0.58 $ 0.52

The accompanying Notes to the Unaudited Condensed Consolidated Financial Statements are an integral part of this statement.

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NIKE, Inc. Unaudited Condensed Consolidated Statements of Comprehensive Income

Three Months Ended February 28, Nine Months Ended February 28,

(In millions) 2018 2017 2018 2017

Net (loss) income $ (921) $ 1,141 $ 796 $ 3,232

Other comprehensive (loss) income, net of tax:

Change in net foreign currency translation adjustment 51 12 65 1

Change in net gains (losses) on cash flow hedges (107) (175) (494) (92)

Change in net gains (losses) on other 2 (7) 1 2

Total other comprehensive (loss) income, net of tax (54) (170) (428) (89)

TOTAL COMPREHENSIVE (LOSS) INCOME $ (975) $ 971 $ 368 $ 3,143The accompanying Notes to the Unaudited Condensed Consolidated Financial Statements are an integral part of this statement.

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NIKE, Inc. Unaudited Condensed Consolidated Statements of Cash Flows

Nine Months Ended February 28,

(In millions) 2018 2017

Cash provided by operations:

Net income $ 796 $ 3,232

Income charges (credits) not affecting cash:

Depreciation 551 521

Deferred income taxes 564 (199)

Stock-based compensation 158 162

Amortization and other 23 7

Net foreign currency adjustments (130) (90)

Changes in certain working capital components and other assets and liabilities:

Decrease (increase) in accounts receivable 3 (546)

(Increase) in inventories (245) (157)

(Increase) in prepaid expenses and other current and non-current assets (474) (152)

Increase in accounts payable, accrued liabilities and other current and non-current liabilities 1,439 106

Cash provided by operations 2,685 2,884

Cash provided (used) by investing activities:

Purchases of short-term investments (3,644) (4,029)

Maturities of short-term investments 3,101 2,433

Sales of short-term investments 1,797 1,905

Additions to property, plant and equipment (728) (776)

Disposals of property, plant and equipment — 13

Other investing activities — (34)

Cash provided (used) by investing activities 526 (488)

Cash used by financing activities:

Net proceeds from long-term debt issuance — 1,482

Long-term debt payments, including current portion (4) (43)

(Decrease) increase in notes payable (314) 24

Payments on capital lease and other financing obligations (16) (14)

Proceeds from exercise of stock options and other stock issuances 554 339

Repurchase of common stock (2,694) (2,429)

Dividends — common and preferred (920) (834)

Tax payments for net share settlement of equity awards  (54) (8)

Cash used by financing activities (3,448) (1,483)

Effect of exchange rate changes on cash and equivalents 91 (30)

Net (decrease) increase in cash and equivalents (146) 883

Cash and equivalents, beginning of period 3,808 3,138

CASH AND EQUIVALENTS, END OF PERIOD $ 3,662 $ 4,021

Supplemental disclosure of cash flow information:

Non-cash additions to property, plant and equipment $ 190 $ 248

Dividends declared and not paid 324 303

The accompanying Notes to the Unaudited Condensed Consolidated Financial Statements are an integral part of this statement.

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Notes to the Unaudited Condensed Consolidated Financial Statements

Note 1 Summary of Significant Accounting Policies 8Note 2 Inventories 9Note 3 Accrued Liabilities 9Note 4 Fair Value Measurements 9Note 5 Short-Term Borrowings and Credit Lines 12Note 6 Income Taxes 12Note 7 Common Stock and Stock-Based Compensation 13Note 8 Earnings Per Share 14Note 9 Risk Management and Derivatives 14Note 10 Accumulated Other Comprehensive Income 18Note 11 Operating Segments 20Note 12 Commitments and Contingencies 21

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Note 1 — Summary of Significant Accounting Policies

B asis of PresentationThe Unaudited Condensed Consolidated Financial Statements include the accounts of NIKE, Inc. and its subsidiaries (the “Company”) and reflect all normal adjustments whichare, in the opinion of management, necessary for a fair statement of the results of operations for the interim period. The year-end Condensed Consolidated Balance Sheet dataas of May 31, 2017 was derived from audited financial  statements,  but  does not  include all  disclosures required by  accounting principles generally  accepted in  the UnitedStates of America (“U.S. GAAP”). The interim financial information and notes thereto should be read in conjunction with the Company’s latest Annual Report on Form 10-K.The results of operations for the three and nine months ended February 28, 2018 are not necessarily indicative of results to be expected for the entire year.

ReclassificationsCertain prior year amounts have been reclassified to conform to fiscal 2018 presentation, including reclassified geographic operating segment data to reflect the changes in theCompany’s operating structure, which became effective on June 1, 2017. Refer to Note 11 — Operating Segments for additional information.

Recently Adopted Accounting StandardsIn  February  2018,  the  Financial  Accounting  Standards  Board  (FASB)  issued  Accounting  Standards  Update  (ASU)  No.  2018-02,  Income Statement — ReportingComprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income .  The  standard  allows  for  reclassification  ofstranded tax  effects  on items resulting  from the Tax Cuts  and Jobs Act  (the  “Tax Act”)  from Accumulated other comprehensive income to Retained earnings .  Tax effectsunrelated to the Tax Act are released from Accumulated other comprehensive income using either the specific identification approach or the portfolio approach based on thenature of the underlying item.

The Company early  adopted the ASU in the third quarter  of  fiscal  2018.  As a result  of  the adoption,  during the third quarter  and first  nine months of  fiscal  2018, Retainedearnings decreased by $17 million , with a corresponding increase to Accumulated other comprehensive income due to the reduction in the corporate tax rate from 35% to21%. Refer to Note 6 — Income Taxes for additional information about the Tax Act.

In March 2016, the FASB issued ASU No. 2016-09, Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , whichchanges how companies account for certain aspects of share-based payment awards to employees. The Company adopted the ASU in the first  quarter of fiscal 2018. Theupdated guidance requires excess tax benefits and deficiencies from share-based payment awards to be recorded in income tax expense in the income statement. Previously,excess tax benefits and deficiencies were recognized in shareholders’ equity on the balance sheet. This change is required to be applied prospectively. During the third quarterand first  nine months of fiscal  2018, the Company recognized $72 million and $194 million  ,  respectively,  of excess tax benefits related to share-based payment awards inIncome tax expense in the Unaudited Condensed Consolidated Statements of Income.

Additionally, ASU 2016-09 modified the classification of certain share-based payment activities within the statement of cash flows, which the Company applied retrospectively.As a result, for the nine months ended February 28, 2017, the Company reclassified a cash inflow of $125 million related to excess tax benefits from share-based paymentawards from Cash used by financing activities to Cash provided by operations , and reclassified a cash outflow of $8 million related to tax payments for the net settlement ofshare-based payment awards from Cash provided by operations to Cash used by financing activities within the Unaudited Condensed Consolidated Statements of Cash Flows.

Recently Issued Accounting StandardsIn August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which expands andrefines hedge accounting for both financial and non-financial risk components, aligns the recognition and presentation of the effects of hedging instruments and hedge items inthe financial statements, and includes certain targeted improvements to ease the application of current guidance related to the assessment of hedge effectiveness. The updateto the standard is effective for the Company on June 1, 2019, with early adoption permitted in any interim period. The Company is currently evaluating the effect the guidancewill have on the Consolidated Financial Statements.

In  October  2016,  the  FASB  issued  ASU No.  2016-16,  Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory .  The  updated  guidance  requirescompanies to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Income tax effects of intra-entitytransfers of inventory will continue to be deferred until the inventory has been sold to a third party. The Company will adopt the standard on June 1, 2018, using a modifiedretrospective approach, with the cumulative effect of applying the new standard recognized in retained earnings at the date of adoption. Although the final impact is subject tochange,  if  adopted  at  February  28,  2018,  the  ASU would  have resulted  in  a  reduction  to Retained earnings through a cumulative  effect  adjustment  of  approximately $520million .

In  February  2016,  the  FASB issued  ASU No.  2016-02, Leases (Topic 842) ,  which  replaces  existing  lease  accounting  guidance.  The  new standard  is  intended  to  provideenhanced transparency and comparability by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet. The new guidance willrequire the Company to continue to classify leases as either operating or financing, with classification affecting the pattern of expense recognition in the income statement. TheCompany will adopt the standard on June 1, 2019. The ASU is required to be applied using a modified retrospective approach at the beginning of the earliest period presented,with  optional  practical  expedients.  The  Company  continues  to  assess  the  effect  the  guidance  will  have  on  its  existing  accounting  policies  and  the  Consolidated  FinancialStatements  and expects  there  will  be  an increase  in  assets  and liabilities  on  the  Consolidated  Balance  Sheets  at  adoption  due to  the  recording  of  right-of-use  assets  andcorresponding lease liabilities, which may be material. Refer to Note 15 — Commitments and Contingencies of the Annual Report on Form 10-K for the fiscal year ended May31, 2017 for information about the Company ’ s lease obligations.

In January 2016, the FASB issued ASU No. 2016-01,  Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and FinancialLiabilities .  The  updated  guidance  enhances  the  reporting  model  for  financial  instruments,  which  includes  amendments  to  address  aspects  of  recognition,  measurement,presentation and disclosure. The update to the standard is effective for the Company beginning June 1, 2018. The Company does not expect the adoption to have a materialimpact on the Consolidated Financial Statements.

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In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which replaces existing revenue recognition guidance. The updatedguidance requires companies to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration towhich the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount,timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company will adopt the standard on June 1, 2018, using a modified retrospectiveapproach, with the cumulative effect of initially applying the standard recognized in retained earnings at the date of adoption.

While the Company does not expect the adoption of this standard to have a material impact on the Company’s net Revenues in the Consolidated Statements of Income, theCompany anticipates revenues for certain wholesale transactions and substantially all digital commerce sales will be recognized upon shipment rather than upon delivery to thecustomer.

Additionally,  provisions  for  post-invoice  sales  discounts,  returns  and  miscellaneous  claims  will  be  recognized  as  accrued  liabilities  rather  than  as  reductions  to  Accountsreceivable, net ; and the estimated cost of inventory associated with the provision for sales returns will be recorded within Prepaid expenses and other current assets on theConsolidated Balance Sheets. The Company continues to evaluate the impact of this new standard, including on accounting policies, disclosures, internal control over financialreporting and its contracts with customers.

Note 2 — InventoriesInventory balances of $5,366 million and $5,055 million at February 28, 2018 and May 31, 2017 , respectively, were substantially all finished goods.

Note 3 — Accrued LiabilitiesAccrued liabilities included the following:

As of February 28, As of May 31,

(In millions) 2018 2017

Compensation and benefits, excluding taxes $ 886 $ 871

Fair value of derivatives 539 168

Endorsement compensation 354 396

Dividends payable 324 300

Import and logistics costs 293 257

Taxes other than income taxes payable 244 196

Advertising and marketing 182 125

Other (1) 905 698

TOTAL ACCRUED LIABILITIES $ 3,727 $ 3,011(1) Other consists of various accrued expenses with no individual item accounting for more than 5% of the total Accrued liabilities balance at February 28, 2018 and May 31,

2017 .

Note 4 — Fair Value MeasurementsThe Company measures certain financial assets and liabilities at fair value on a recurring basis, including derivatives and available-for-sale securities. Fair value is the price theCompany would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. The Company uses a three-level  hierarchy established by the FASB that  prioritizes fair  value measurements based on the types of  inputs used for  the various valuation techniques (market  approach,income approach and cost approach).

The levels of the fair value hierarchy are described below:

• Level 1: Quoted prices in active markets for identical assets or liabilities.

• Level  2:  Inputs  other  than quoted prices  that  are  observable  for  the  asset  or  liability,  either  directly  or  indirectly;  these  include quoted prices  for  similar  assets  orliabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

• Level 3: Unobservable inputs for which there is little or no market data available, which require the reporting entity to develop its own assumptions.

The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset orliability. Financial assets and liabilities are classified in their entirety based on the most conservative level of input that is significant to the fair value measurement.

Pricing vendors are utilized for a majority of Level 1 and Level 2 investments. These vendors either provide a quoted market price in an active market or use observable inputswithout  applying  significant  adjustments  in  their  pricing.  Observable  inputs  include broker  quotes,  interest  rates  and yield  curves  observable  at  commonly  quoted  intervals,volatilities and credit risks. The fair value of derivative contracts is determined using observable market inputs such as the daily market foreign currency rates, forward pricingcurves, currency volatilities, currency correlations and interest rates, and considers non-performance risk of the Company and that of its counterparties.

The Company’s fair value measurement process includes comparing fair values to another independent pricing vendor to ensure appropriate fair values are recorded.

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The following tables present information about the Company’s financial assets measured at fair value on a recurring basis as of February 28, 2018 and May 31, 2017 , andindicate the level in the fair value hierarchy in which the Company classifies the fair value measurement.

As of February 28, 2018

(In millions) Assets at Fair Value Cash and

Equivalents Short-term

Investments Other Long-term

Assets

Cash $ 620 $ 620 $ — $ —

Level 1:

U.S. Treasury securities 865 150 715 —

Level 2:

Time deposits 773 769 4 —

U.S. Agency securities 45 — 45 —

Commercial paper and bonds 477 152 325 —

Money market funds 1,971 1,971 — —

Total Level 2: 3,266 2,892 374 —

Level 3:

Non-marketable preferred stock 11 — — 11

TOTAL $ 4,762 $ 3,662 $ 1,089 $ 11

As of May 31, 2017

(In millions) Assets at Fair Value Cash and

Equivalents Short-term

Investments Other Long-term

Assets

Cash $ 505 $ 505 $ — $ —

Level 1:

U.S. Treasury securities 1,545 159 1,386 —

Level 2:

Time deposits 813 769 44 —

U.S. Agency securities 522 150 372 —

Commercial paper and bonds 820 251 569 —

Money market funds 1,974 1,974 — —

Total Level 2: 4,129 3,144 985 —

Level 3:

Non-marketable preferred stock 10 — — 10

TOTAL $ 6,189 $ 3,808 $ 2,371 $ 10

The  Company  elects  to  record  the  gross  assets  and  liabilities  of  its  derivative  financial  instruments  on  the  Unaudited  Condensed  Consolidated  Balance  Sheets.  TheCompany’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  earlytermination  of  the  contract.  Any  amounts  of  cash  collateral  received  related  to  these  instruments  associated  with  the  Company  ’ s  credit-related  contingent  features  arerecorded  in Cash and equivalents and Accrued liabilities ,  the  latter  of  which  would  further  offset  against  the  Company’s  derivative  asset  balance.  Any  amounts  of  cashcollateral posted related to these instruments associated with the Company ’ s credit-related contingent features are recorded in Prepaid expenses and other current assets ,which would further offset against the Company’s derivative liability balance. Cash collateral received or posted related to the Company ’ s credit-related contingent features ispresented in the Cash provided by operations component of the Unaudited Condensed Consolidated Statements of Cash Flows. Any amounts of non-cash collateral received,such as securities, are not recorded on the Unaudited Condensed Consolidated Balance Sheets pursuant to U.S. GAAP. For further information related to credit risk, refer toNote 9 — Risk Management and Derivatives .

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The following tables present information about the Company’s derivative assets and liabilities measured at fair value on a recurring basis as of February 28, 2018 and May 31,2017 , and indicate the level in the fair value hierarchy in which the Company classifies the fair value measurement.

As of February 28, 2018 Derivative Assets Derivative Liabilities

(In millions) Assets at Fair

Value Other Current

Assets Other Long-term Assets

Liabilities atFair Value

AccruedLiabilities

Other Long-term Liabilities

Level 2:

Foreign exchange forwards and options (1) $ 83 $ 65 $ 18 $ 648 $ 536 $ 112

Embedded derivatives 13 2 11 8 3 5

TOTAL $ 96 $ 67 $ 29 $ 656 $ 539 $ 117(1) If the foreign exchange derivative instruments had been netted on the Unaudited Condensed Consolidated Balance Sheets, the asset and liability positions each would

have been reduced by $83 million as of February 28, 2018 . As of that date, the Company had posted $354 million of cash collateral to various counterparties related toforeign exchange derivative instruments. No amount of collateral was received on the Company ’ s derivative asset balance as of February 28, 2018 .

As of May 31, 2017 Derivative Assets Derivative Liabilities

(In millions) Assets at Fair

Value Other Current

Assets Other Long-term Assets

Liabilities atFair Value

AccruedLiabilities

Other Long-term Liabilities

Level 2:

Foreign exchange forwards and options (1) $ 231 $ 216 $ 15 $ 246 $ 166 $ 80

Embedded derivatives 10 1 9 8 2 6

TOTAL $ 241 $ 217 $ 24 $ 254 $ 168 $ 86(1) If the foreign exchange derivative instruments had been netted on the Condensed Consolidated Balance Sheets, the asset and liability positions each would have been

reduced by $187 million as of May 31, 2017 . As of that date, no amount of cash collateral had been received or posted on the derivative asset and liability balancesrelated to foreign exchange derivative instruments.

Available-for-sale securities comprise investments in U.S. Treasury and Agency securities, time deposits, money market funds, corporate commercial paper and bonds. Thesesecurities are valued using market prices in both active markets (Level 1) and less active markets (Level 2). As of February 28, 2018 , the Company held $1,057 million ofavailable-for-sale securities with maturity dates within one year and $32 million with maturity dates over one year and less than five years within Short-term investments on theUnaudited  Condensed Consolidated  Balance Sheets  .  The gross  realized  gains  and losses  on sales  of  available-for-sale  securities  were  immaterial  for  the  three and ninemonths  ended  February  28,  2018  and  2017  .  Unrealized  gains  and  losses  on  available-for-sale  securities  included  in  Accumulated other comprehensive income wereimmaterial  as  of February  28,  2018 and May  31,  2017  .  The  Company  regularly  reviews  its  available-for-sale  securities  for  other-than-temporary  impairment.  For  the  ninemonths ended February 28, 2018 and 2017 , the Company did not consider any of its securities to be other-than-temporarily impaired and, accordingly, did not recognize anyimpairment losses.

Included in Interest expense (income), net for the three months ended February 28, 2018 and 2017 was interest income related to the Company’s available-for-sale securitiesof $12 million and $8 million , respectively, and $ 36 million and $ 17 million for the nine months ended February 28, 2018 and 2017 , respectively.

The  Company’s  Level  3  assets  comprise  investments  in  certain  non-marketable  preferred  stock.  These  Level  3  investments  are  an  immaterial  portion  of  the  Company’sportfolio. Changes in Level 3 investment assets were immaterial during the nine months ended February 28, 2018 and the fiscal year ended May 31, 2017 .

No transfers among levels within the fair value hierarchy occurred during the nine months ended February 28, 2018 and the fiscal year ended May 31, 2017 .

For  additional  information  related  to  the  Company’s  derivative  financial  instruments,  refer  to Note  9  — Risk  Management  and Derivatives  .  The carrying amounts  of  othercurrent financial assets and other current financial liabilities approximate fair value.

As of February 28, 2018 and May 31, 2017 , assets or liabilities that were required to be measured at fair value on a non-recurring basis were immaterial .

Financial Assets and Liabilities Not Recorded at Fair ValueThe Company’s Long-term debt is recorded at adjusted cost, net of unamortized premiums, discounts and debt issuance costs. The fair value of Long-term debt is estimatedbased upon quoted prices for  similar  instruments or quoted prices for  identical  instruments in inactive markets (Level  2).  The fair  value of  the Company’s Long-term debt ,including the current portion, was approximately $3,327 million at February 28, 2018 and $3,401 million at May 31, 2017 .

For fair value information regarding Notes payable , refer to Note 5 — Short-Term Borrowings and Credit Lines .

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Note 5 — Short-Term Borrowings and Credit LinesAs of February 28, 2018 , the Company had no outstanding borrowings under its $2 billion commercial paper program. As of May 31, 2017 , $325 million of commercial paperwas outstanding at a weighted average interest rate of 0.86% . These borrowings are included within Notes payable .

Due to the short-term nature of the borrowings, the carrying amounts reflected on the Unaudited Condensed Consolidated Balance Sheets for Notes payable approximate fairvalue.

Note 6 — Income TaxesThe  effective  tax  rate  was 74.4% for  the  nine  months  ended  February  28,  2018  compared  to  13.1% for  the  nine  months  ended  February  28,  2017  .  The  increase  in  theCompany’s effective tax rate was due to the impact of the Tax Cuts and Jobs Act (the “Tax Act”), which included additional income tax expense of $2,030 million in the thirdquarter of fiscal 2018. The effective tax rate also reflected the tax benefit from stock-based compensation in the current period as a result of the adoption of ASU 2016-09 inthe first quarter of fiscal 2018.

Tax ActOn December 22, 2017, the United States enacted the Tax Cuts and Jobs Act, which significantly changes previous U.S. tax laws, including provisions for a one-time transitiontax on deemed repatriation of undistributed foreign earnings, a reduction in the corporate tax rate from 35% to 21%, as well as other changes. Under U.S. GAAP, accountingfor the effect of tax legislation is required in the period of enactment. For fiscal 2018, the change in the corporate tax rate, effective January 1, 2018, results in a blended U.S.federal  statutory rate for the Company of approximately 29% .  The Tax Act  also includes provisions that  are not  yet  effective for  the Company, including a provision to taxglobal  intangible  low-taxed  income  (GILTI)  of  foreign  subsidiaries,  which  will  be  effective  for  the  Company  beginning  June  1,  2018.  In  accordance  with  U.S.  GAAP,  theCompany has made an accounting policy election to treat taxes due under the GILTI provision as a current period expense.

Income tax expense for the nine months ended February 28, 2018 includes provisional expense of $2,030 million , which consists primarily of $2,010 million for the one-timetransition  tax  on  the  deemed  repatriation  of  undistributed  foreign  earnings,  and  $107  million  resulting  from  the  impact  of  changes  in  the  tax  rate,  primarily  on  theremeasurement  of  deferred  tax  assets  and  liabilities.  The  remaining  provisions  of  the  Tax  Act  did  not  have  a  material  impact  on  the  Company  ’ s  Unaudited  CondensedConsolidated Financial Statements upon enactment.

In  accordance  with  U.S.  Securities  and  Exchange  Commission  Staff  Accounting  Bulletin  No.  118  (“SAB  118”),  the  provisional  amounts  recorded  represent  reasonableestimates of the effects of the Tax Act for which the analysis is not yet complete. As the Company completes its analysis of the Tax Act, including collecting, preparing andanalyzing  necessary  information,  performing  and  refining  calculations  and  obtaining  additional  guidance  from  the  U.S.  Internal  Revenue  Services  (IRS),  U.S.  TreasuryDepartment, FASB or other standard setting and regulatory bodies on the Tax Act, it may record adjustments to the provisional amounts, which may be material. In accordancewith SAB 118, the Company ’ s accounting for the tax effects of the Tax Act will be completed during the measurement period, which should not extend beyond one year fromthe enactment date. At February 28, 2018, there were no provisions for which the Company was unable to record a reasonable estimate of the impact.

Transition Tax

The  Company  recorded  a  provisional  expense  of  $2,010  million  related  to  the  one-time  transition  tax  on  the  deemed  repatriation  of  undistributed  foreign  earnings.  Thetransition tax is based on the Company ’ s estimated total post-1986 undistributed foreign earnings at a tax rate of 15.5% for foreign cash and certain other specified assets,and 8% on the remaining earnings. The actual transition tax due will be based on actual undistributed foreign earnings and cash and certain other specified assets as of therequired measurement date, which could materially affect the amount of the transition tax. The Company expects to pay the transition tax in installments over an eight -yearperiod. Accordingly,  the non-current  portion of the provisional  expense for the transition tax of $1,242 million  ,  net of applicable foreign tax credits the Company expects toutilize, has been recorded in Deferred income taxes and other liabilities on the Unaudited Condensed Consolidated Balance Sheets.

Prior to the enactment of the Tax Act, the Company regularly determined certain foreign earnings to be indefinitely reinvested outside the United States. Following enactmentof the Tax Act, the Company no longer considers any historical or future earnings to be indefinitely reinvested with its foreign subsidiaries.

Impact of Changes in the Tax Rate

As a result of the reduction in the corporate tax rate from 35% to 21%, the Company recorded a net provisional expense of $107 million for the impact of changes in the taxrate, primarily on deferred tax assets and liabilities. The Company remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to berealized. The total provisional expense recorded during the period for the remeasurement of deferred tax assets and liabilities was $149 million . This was partially offset by a$42 million tax benefit for the reduction in the tax rate applied to current year earnings. These amounts may be adjusted to the extent that actual operating results differ fromthe Company’s current estimates.

Other Tax MattersAs of February 28, 2018 , total gross unrecognized tax benefits, excluding related interest and penalties, were $718 million , $504 million of which would affect the Company’seffective tax rate if recognized in future periods. The Company ’ s total gross unrecognized tax benefits, excluding related interest and penalties, as of February 28, 2018, andthe portion that would affect the effective tax rate if recognized in future periods, were impacted by the enactment of the Tax Act. As of May 31, 2017 , total gross unrecognizedtax benefits, excluding related interest and penalties, were $461 million . The liability for payment of interest and penalties decreased $ 25 million during the nine months endedFebruary  28,  2018  .  As  of  February  28,  2018  and May  31,  2017  ,  accrued  interest  and  penalties  related  to  uncertain  tax  positions  were  $146  million  and $171  million  ,respectively (excluding federal benefit).

The Company is subject to taxation in the United States, as well as various state and foreign jurisdictions. The Company has closed all U.S. federal income tax matters throughfiscal 2014, with the exception of certain transfer pricing adjustments. The Company is currently under audit by the IRS for fiscal 2015 and 2016.

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T  he  Company’s  major  foreign  jurisdictions,  China  and  the  Netherlands,  have  concluded  substantially  all  income  tax  matters  through  calendar  2007  and  fiscal  2011,respectively. Although the timing of resolution of audits is not certain, the Company evaluates all domestic and foreign audit issues in the aggregate, along with the expirationof applicable statutes of limitations, and estimates that it is reasonably possible the total gross unrecognized tax benefits could decrease by up to $126 million within the next12 months.

Note 7 — Common Stock and Stock-Based CompensationThe authorized number of shares of Class A Common Stock, no par value, and Class B Common Stock, no par value, are 400 million and 2,400 million , respectively. Eachshare of Class A Common Stock is convertible into one share of Class B Common Stock. Voting rights of Class B Common Stock are limited in certain circumstances withrespect to the election of directors. There are no differences in the dividend and liquidation preferences or participation rights of the holders of Class A and Class B CommonStock.

The  NIKE,  Inc.  Stock  Incentive  Plan  (the  “Stock  Incentive  Plan”)  provides  for  the  issuance  of  up  to  718  million  previously  unissued  shares  of  Class  B  Common  Stock  inconnection with equity awards granted under the Stock Incentive Plan. The Stock Incentive Plan authorizes the grant of non-statutory stock options, incentive stock options,stock appreciation rights, restricted stock, restricted stock units and performance-based awards. The exercise price for stock options and stock appreciation rights may not beless than the fair market value of the underlying shares on the date of grant. A committee of the Board of Directors administers the Stock Incentive Plan. The committee hasthe authority to determine the employees to whom awards will be made, the amount of the awards and the other terms and conditions of the awards. Substantially all stockoption grants outstanding under the Stock Incentive Plan are granted in the first quarter of each fiscal year, vest ratably over four years and expire ten years from the date ofgrant.

In addition to the Stock Incentive Plan, the Company gives employees the right to purchase shares at a discount to the market price under employee stock purchase plans(ESPPs).  Subject to the annual statutory limit,  employees are eligible to participate through payroll  deductions of up to 10% of their compensation. At the end of each six -month offering period, shares are purchased by the participants at 85% of the lower of the fair market value at the beginning or the end of the offering period.

The Company accounts for stock-based compensation by estimating the fair value of options granted under the Stock Incentive Plan and employees  ’ purchase rights underthe ESPPs using the Black-Scholes option pricing model. The Company recognizes this fair value as Cost of sales or Operating overhead expense , as applicable, over thevesting period using the straight-line method.

The following table summarizes the Company ’ s total stock-based compensation expense recognized in Cost of sales or Operating overhead expense , as applicable:  

Three Months Ended February 28, Nine Months Ended February 28,

(In millions) 2018 2017 2018 2017

Stock options (1) $ 38 $ 35 $ 110 $ 110

ESPPs 7 7 24 27

Restricted stock 10 9 24 25

TOTAL STOCK-BASED COMPENSATION EXPENSE $ 55 $ 51 $ 158 $ 162(1) Expense for stock options includes the expense associated with stock appreciation rights. Accelerated stock option expense is recorded for employees eligible for

accelerated stock option vesting upon retirement. Accelerated stock option expense was $6 million and $3 million for the three months ended February 28, 2018 and 2017, respectively, and $14 million and $11 million for the nine months ended February 28, 2018 and 2017 , respectively.

As of February 28, 2018 , the Company had $234 million of unrecognized compensation costs from stock options, net of estimated forfeitures, to be recognized in Cost of salesor Operating overhead expense , as applicable, over a weighted average remaining period of 2.2 years.

The weighted average fair value per share of the options granted during the nine months ended February 28, 2018 and 2017 , computed as of the grant date using the Black-Scholes pricing model, was $9.82 and $9.38 , respectively. The weighted average assumptions used to estimate these fair values were as follows:

Nine Months Ended February 28, 2018 2017

Dividend yield 1.2% 1.1%

Expected volatility 16.4% 17.4%

Weighted average expected life (in years) 6.0 6.0

Risk-free interest rate 2.0% 1.3%

The Company estimates the expected volatility based on the implied volatility in market traded options on the Company’s common stock with a term greater than one year,along with other factors. The weighted average expected life of options is based on an analysis of historical and expected future exercise patterns. The interest rate is basedon 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.

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Note 8 — Earnings Per ShareThe following is a reconciliation from basic earnings per common share to diluted earnings per common share. As a result of the net loss incurred for the three months endedFebruary  28,  2018,  all  outstanding  options,  including  shares  under  ESPPs,  to  purchase  common stock,  and  other  awards  of  common stock  have  been  excluded  from thecomputation of diluted earnings per common share because the inclusion of the shares would have been anti-dilutive.  Additionally,  42.9 million options for the nine monthsended  February  28,  2018,  and 31.1  million  and 31.0  million  options  for  the  three  and  nine  months  ended  February  28,  2017,  respectively,  have  been  excluded  from  thecomputations of diluted earnings per common share because the options were anti-dilutive.

Three Months Ended February 28, Nine Months Ended February 28,

(In millions, except per share data) 2018 2017 2018 2017

Determination of shares:

Weighted average common shares outstanding 1,623.5 1,653.1 1,629.9 1,661.5

Assumed conversion of dilutive stock options and awards — 33.2 35.8 34.9

DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 1,623.5 1,686.3 1,665.7 1,696.4

(Loss) earnings per common share:

Basic $ (0.57) $ 0.69 $ 0.49 $ 1.95

Diluted $ (0.57) $ 0.68 $ 0.48 $ 1.91

Note 9 — Risk Management and DerivativesThe Company is exposed to global market risks, including the effect of changes in foreign currency exchange rates and interest rates, and uses derivatives to manage financialexposures that occur in the normal course of business. The Company does not hold or issue derivatives for trading or speculative purposes.

The Company may elect to designate certain derivatives as hedging instruments under U.S. GAAP. The Company formally documents all relationships between designatedhedging  instruments  and  hedged  items  as  well  as  its  risk  management  objectives  and  strategies  for  undertaking  hedge  transactions.  This  process  includes  linking  allderivatives designated as hedges to either recognized assets, liabilities, or forecasted transactions and assessing, both at inception and on an ongoing basis, the effectivenessof the hedging relationships.

The majority of derivatives outstanding as of February 28, 2018 are designated as foreign currency cash flow hedges, primarily for Euro/U.S. Dollar, Japanese Yen/U.S. Dollarand British  Pound/Euro  currency pairs.  All  derivatives  are recognized on the Unaudited  Condensed Consolidated  Balance Sheets  at  fair  value and classified  based on theinstrument’s maturity date.

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The following table presents  the fair  values of  derivative  instruments  included within  the Unaudited Condensed Consolidated Balance Sheets  as of  February 28, 2018 andMay 31, 2017 . Refer to Note 4 — Fair Value Measurements for a description of how the financial instruments in the table below are valued.

Derivative Assets Derivative Liabilities

(In millions) Balance Sheet

Location February 28,

2018 May 31,

2017 Balance Sheet

Location February 28,

2018 May 31,

2017Derivatives formallydesignated as hedginginstruments:

Foreign exchangeforwards and options

Prepaid expenses andother current assets $ 42 $ 113 Accrued liabilities $ 403 $ 59

Foreign exchangeforwards and options

Deferred income taxesand other assets 18 13

Deferred income taxesand other liabilities 112 73

Total derivatives formallydesignated as hedginginstruments

60 126

  515 132

Derivatives not designatedas hedging instruments: Foreign exchangeforwards and options

Prepaid expenses andother current assets 23 103 Accrued liabilities 133 107

Embedded derivatives Prepaid expenses andother current assets 2 1 Accrued liabilities 3 2

Foreign exchangeforwards and options

Deferred income taxesand other assets — 2

Deferred income taxesand other liabilities — 7

Embedded derivatives Deferred income taxes

and other assets 11 9 Deferred income taxes

and other liabilities 5 6Total derivatives notdesignated as hedginginstruments

36 115

141 122

TOTAL DERIVATIVES $ 96 $ 241 $ 656 $ 254

The following tables present the amounts affecting the Unaudited Condensed Consolidated Statements of Income for the three and nine months ended February 28, 2018 and2017 :

(In millions)

Amount of Gain (Loss)Recognized in Other

Comprehensive Income onDerivatives (1)

Amount of Gain (Loss) Reclassified from Accumulated OtherComprehensive Income into Income (1)

Three Months Ended February 28, Location of Gain (Loss)Reclassified from Accumulated OtherComprehensive Income into Income

Three Months Ended

February 28,

2018 2017 2018 2017

Derivatives designated as cash flow hedges:              Foreign exchange forwards and options $ 7 $ 5 Revenues $ 9 $ 24

Foreign exchange forwards and options (118) (5) Cost of sales (41) 87

Foreign exchange forwards and options — (3) Total selling and administrative expense — —

Foreign exchange forwards and options (47) 4 Other (income) expense, net (15) 67

Interest rate swaps (2) — — Interest expense (income), net (1) (2)

Total designated cash flow hedges $ (158) $ 1 $ (48) $ 176(1) For the three months ended February 28, 2018 and 2017 , the amounts recorded in Other (income) expense, net as a result of hedge ineffectiveness and the

discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial .(2) Gains and losses associated with terminated interest rate swaps, which were previously designated as cash flow hedges and recorded in Accumulated other

comprehensive income , will be released through Interest expense (income), net over the term of the issued debt.

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(In millions)

Amount of Gain (Loss)Recognized in Other

Comprehensive Income onDerivatives (1)

Amount of Gain (Loss) Reclassified from Accumulated Other ComprehensiveIncome into Income (1)

Nine Months Ended February 28, Location of Gain (Loss)Reclassified from Accumulated OtherComprehensive Income into Income

Nine Months Ended February

28,

2018 2017 2018 2017

Derivatives designated as cash flow hedges:              Foreign exchange forwards and options $ 26 $ 45 Revenues $ 24 $ 96

Foreign exchange forwards and options (382) 244 Cost of sales (17) 260

Foreign exchange forwards and options 1 (1) Total selling and administrative expense — —

Foreign exchange forwards and options (169) 149 Other (income) expense, net (33) 141

Interest rate swaps (2) — (54) Interest expense (income), net (5) (2)

Total designated cash flow hedges $ (524) $ 383 $ (31) $ 495(1) For the nine months ended February 28, 2018 and 2017 , the amounts recorded in Other (income) expense, net as a result of hedge ineffectiveness and the

discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring were immaterial .(2) Gains and losses associated with terminated interest rate swaps, which were previously designated as cash flow hedges and recorded in Accumulated other

comprehensive income , will be released through Interest expense (income), net over the term of the issued debt.

Amount of Gain (Loss) Recognized in Income on Derivatives

Location of Gain (Loss) Recognized in Income on Derivatives

Three Months Ended February

28, Nine Months Ended February

28,

(In millions) 2018 2017 2018 2017

Derivatives not designated as hedging instruments:

Foreign exchange forwards and options $ (101) $ (66) $ (270) $ 101 Other (income) expense, net

Embedded derivatives 1 (1) (3) (2) Other (income) expense, net

Cash Flow HedgesAll changes in fair value of derivatives designated as cash flow hedges, excluding any ineffective portion, are recorded in  Accumulated other comprehensive income  until  Netincome  is affected by the variability of cash flows of the hedged transaction. Effective hedge results are classified within the Unaudited Condensed Consolidated Statementsof Income in the same manner as the underlying exposure. The ineffective portion of the unrealized gains and losses on these contracts,  if  any, is recorded immediately inearnings. Derivative instruments designated as cash flow hedges must be discontinued when it is no longer probable the forecasted hedged transaction will occur in the initiallyidentified time period. The gains and losses associated with discontinued derivative instruments that were in  Accumulated other comprehensive income  will be recognizedimmediately  in   Other (income) expense, net if  it  is  probable  the  forecasted  hedged  transaction  will  not  occur  by  the  end  of  the  initially  identified  time  period  or  within  anadditional two -month period thereafter. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Company will account for thederivative as an undesignated instrument as discussed below.

The  purpose  of  the  Company’s  foreign  exchange  risk  management  program is  to  lessen  both  the  positive  and  negative  effects  of  currency  fluctuations  on  the  Company’sconsolidated results of operations,  financial  position and cash flows. Foreign currency exposures that the Company may elect to hedge in this manner include product costexposures, non-functional currency denominated external and intercompany revenues, selling and administrative expenses, investments in U.S. Dollar-denominated available-for-sale debt securities and certain other intercompany transactions.

Product  cost  exposures  are  primarily  generated  through  non-functional  currency  denominated  product  purchases  and  the  foreign  currency  adjustment  program  describedbelow. NIKE entities primarily purchase product in two ways: (1) Certain NIKE entities purchase product from the NIKE Trading Company (NTC), a wholly-owned sourcing hubthat buys NIKE branded product from third-party factories, predominantly in U.S. Dollars. The NTC, whose functional currency is the U.S. Dollar, then sells the product to NIKEentities in their respective functional currencies. When the NTC sells to a NIKE entity with a different functional currency, the result is a foreign currency exposure for the NTC.(2) Other NIKE entities purchase product directly from third-party factories in U.S. Dollars. These purchases generate a foreign currency exposure for those NIKE entities witha functional currency other than the U.S. Dollar.

The Company operates a foreign currency adjustment program with certain factories. The program is designed to more effectively manage foreign currency risk by assumingcertain  of  the  factories’  foreign  currency  exposures,  some  of  which  are  natural  offsets  to  the  Company’s  existing  foreign  currency  exposures.  Under  this  program,  theCompany’s  payments  to  these  factories  are  adjusted  for  rate  fluctuations  in  the  basket  of  currencies  (“factory  currency  exposure  index”)  in  which  the  labor,  materials  andoverhead costs incurred by the factories in the production of NIKE branded products (“factory input costs”) are denominated. For the portion of the indices denominated in thelocal or functional currency of the factory, the Company may elect to place formally designated cash flow hedges. For all currencies within the indices, excluding the U.S. Dollarand the local or functional currency of the factory, an embedded derivative contract is created upon the factory’s acceptance of NIKE’s purchase order. Embedded derivativecontracts are separated from the related purchase order, as further described within the Embedded Derivatives section below.

The Company’s policy permits the utilization of derivatives to reduce its foreign currency exposures where internal netting or other strategies cannot be effectively employed.Typically, the Company may enter into hedge contracts starting up to 12 to 24 months in advance of the forecasted transaction and may place incremental hedges up to 100%of the exposure by the time the forecasted transaction occurs. The total notional amount of outstanding foreign currency derivatives designated as cash flow hedges was $13.4billion as of February 28, 2018 .

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As  of February  28,  2018  , $356  million  of  deferred  net  losses  (net  of  tax)  on  both  outstanding  and  matured  derivatives  in Accumulated other comprehensive income areexpected to be reclassified to Net income during the next 12 months concurrent with the underlying hedged transactions also being recorded in Net income . Actual amountsultimately reclassified to Net income are dependent on the exchange rates in effect when derivative contracts that are currently outstanding mature. As of February 28, 2018 ,the maximum term over which the Company was hedging exposures to the variability of cash flows for its forecasted transactions was 27 months.

Fair Value HedgesThe Company has, in the past, been exposed to the risk of changes in the fair value of certain fixed-rate debt attributable to changes in interest rates. Derivatives used by theCompany to hedge this risk are receive-fixed, pay-variable interest rate swaps. All interest rate swaps designated as fair value hedges of the related long-term debt meet theshortcut method requirements under U.S. GAAP. Accordingly, changes in the fair values of the interest rate swaps are considered to exactly offset changes in the fair value ofthe underlying long-term debt. The Company recorded no ineffectiveness from its interest rate swaps designated as fair value hedges for the  three and nine months endedFebruary 28, 2018 or 2017 . The Company had no interest rate swaps designated as fair value hedges as of February 28, 2018 .

Net Investment HedgesThe Company has,  in  the  past,  hedged and may,  in  the  future,  hedge the  risk  of  variability  in  foreign currency-denominated net  investments  in  wholly-owned internationaloperations.  All  changes in fair  value of the derivatives designated as net investment  hedges,  except  ineffective portions,  are reported in Accumulated other comprehensiveincome along with the foreign currency translation adjustments on those investments. The ineffective portion of the unrealized gains and losses on these contracts, if any, arerecorded immediately in earnings. The Company recorded no ineffectiveness from net investment hedges for the three and nine months ended February 28, 2018 or 2017 .The Company had no outstanding net investment hedges as of February 28, 2018 .

Undesignated Derivative InstrumentsThe Company may elect to enter into foreign exchange forwards to mitigate the change in fair value of specific assets and liabilities on the Unaudited Condensed ConsolidatedBalance  Sheets  and/or  embedded  derivative  contracts.  These  undesignated  instruments  are  recorded  at  fair  value  as  a  derivative  asset  or  liability  on  the  UnauditedCondensed Consolidated Balance Sheets with their corresponding change in fair value recognized in Other (income) expense, net , together with the re-measurement gain orloss  from the  hedged balance sheet  position  and/or  embedded derivative  contract.  The total  notional  amount  of  outstanding  undesignated  derivative  instruments  was  $7.1billion as of February 28, 2018 .

Embedded DerivativesAs part of the foreign currency adjustment program described above, an embedded derivative contract is created upon the factory’s acceptance of NIKE’s purchase order forcurrencies  within  the factory  currency exposure indices that  are neither  the U.S.  Dollar  nor  the local  or  functional  currency of  the factory.  In addition,  embedded derivativecontracts  are  created  when the  Company enters  into  certain  other  contractual  agreements  which  have payments  that  are  indexed to  currencies  that  are  not  the  functionalcurrency  of  either  substantial  party  to  the  contracts.  Embedded  derivative  contracts  are  treated  as  foreign  currency  forward  contracts  that  are  bifurcated  from  the  relatedcontract and recorded at fair value as a derivative asset or liability on the Unaudited Condensed Consolidated Balance Sheets with their corresponding change in fair valuerecognized in Other (income) expense, net , through the date the foreign currency fluctuations cease to exist.

As of February 28, 2018 , the total notional amount of embedded derivatives outstanding was approximately $240 million .

Credit RiskThe Company is exposed to credit-related losses in the event of non-performance by counterparties to hedging instruments. The counterparties to all derivative transactionsare major financial institutions with investment grade credit ratings. However, this does not eliminate the Company’s exposure to credit risk with these institutions. This creditrisk is limited to the unrealized gains in such contracts should any of these counterparties fail to perform as contracted. To manage this risk, the Company has established strictcounterparty credit guidelines that are continually monitored.

The Company’s derivative contracts contain credit risk-related contingent features designed to protect against significant deterioration in counterparties’ creditworthiness andtheir ultimate ability to settle outstanding derivative contracts in the normal course of business. The Company’s bilateral credit-related contingent features generally require theowing entity, either the Company or the derivative counterparty, to post collateral for the portion of the fair value in excess of $50 million should the fair value of outstandingderivatives per counterparty be greater than $50 million  .  Additionally,  a certain level of decline in credit  rating of either the Company or the counterparty could also triggercollateral requirements. As of February 28, 2018 , the Company was in compliance with all  credit  risk-related contingent features and had derivative instruments with creditrisk-related contingent features in a net liability position of $565 million . Accordingly, the Company was required to post $354 million of cash collateral to various counterpartiesto  its  derivative  contracts  as  a  result  of  these  contingent  features.  As  of  February  28,  2018  ,  the  Company  had  received  no cash  collateral  from  its  counterparties  to  itsderivative contracts (refer to Note 4 — Fair Value Measurements ). The Company considers the impact of the risk of counterparty default to be immaterial .

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Note 10 — Accumulated Other Comprehensive IncomeThe changes in Accumulated other comprehensive income , net of tax, for the three and nine months ended February 28, 2018 were as follows:

(In millions)

Foreign CurrencyTranslation

Adjustment (1) Cash Flow

Hedges Net Investment

Hedges (1) Other Total

Balance at November 30, 2017 $ (177) $ (439) $ 115 $ (86) $ (587)

Other comprehensive (loss) income: Other comprehensive gains (losses) beforereclassifications (2) 51 (156) — (15) (120)Reclassifications to net income of previously deferred(gains) losses (3) — 49 — 17 66

Total other comprehensive (loss) income 51 (107) — 2 (54)Reclassifications to retained earnings in accordancewith ASU 2018-02 (4) 24 (7) — — 17

Balance at February 28, 2018 $ (102) $ (553) $ 115 $ (84) $ (624)(1) 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.(2) Net of tax benefit (expense) of $0 million , $2 million , $0 million , $0 million and $2 million , respectively.(3) Net of tax (benefit) expense of $0 million , $1 million , $0 million , $1 million and $2 million , respectively.(4) Refer to Note 1 — Summary of Significant Accounting Policies f or additional information on the adoption of ASU 2018-02 during the third quarter of fiscal 2018.

(In millions)

Foreign CurrencyTranslation

Adjustment (1) Cash Flow

Hedges Net Investment

Hedges (1) Other Total

Balance at May 31, 2017 $ (191) $ (52) $ 115 $ (85) $ (213)

Other comprehensive (loss) income: Other comprehensive gains (losses) beforereclassifications (2) 65 (523) — (35) (493)Reclassifications to net income of previously deferred(gains) losses (3) — 29 — 36 65

Total other comprehensive (loss) income 65 (494) — 1 (428)Reclassifications to retained earnings in accordancewith ASU 2018-02 (4)  24 (7) — — 17

Balance at February 28, 2018 $ (102) $ (553) $ 115 $ (84) $ (624)(1) 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.(2) Net of tax benefit (expense) of $(23) million , $1 million , $0 million , $0 million and $(22) million , respectively.(3) Net of tax (benefit) expense of $0 million , $(2) million , $0 million , $1 million and $(1) million , respectively.(4) Refer to Note 1 — Summary of Significant Accounting Policies for additional information on the adoption of ASU 2018-02 during the third quarter of fiscal 2018.

The changes in Accumulated other comprehensive income , net of tax, for the three and nine months ended February 28, 2017 were as follows:

(In millions)

Foreign CurrencyTranslation

Adjustment (1) Cash Flow Hedges Net Investment

Hedges (1) Other Total

Balance at November 30, 2016 $ (218) $ 546 $ 115 $ (44) $ 399

Other comprehensive (loss) income: Other comprehensive gains (losses) beforereclassifications (2) 13 2 — — 15Reclassifications to net income of previously deferred(gains) losses (3) (1) (177) — (7) (185)

Total other comprehensive (loss) income 12 (175) — (7) (170)

Balance at February 28, 2017 $ (206) $ 371 $ 115 $ (51) $ 229(1) 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.(2) Net of tax benefit (expense) of $ 0 million , $ 1 million , $ 0 million , $ (1) million and $ 0 million , respectively.(3) Net of tax (benefit) expense of $ 0 million , $ (1) million , $ 0 million , $ 2 million and $ 1 million , respectively.

18

(In millions)

Foreign CurrencyTranslation

Adjustment (1) Cash Flow Hedges Net Investment

Hedges (1) Other Total

Balance at May 31, 2016 $ (207) $ 463 $ 115 $ (53) $ 318

Other comprehensive (loss) income: Other comprehensive gains (losses) beforereclassifications (2) 2 406 — 18 426Reclassifications to net income of previously deferred(gains) losses (3) (1) (498) — (16) (515)

Total other comprehensive (loss) income 1 (92) — 2 (89)

Balance at February 28, 2017 $ (206) $ 371 $ 115 $ (51) $ 229(1) 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.(2) Net of tax benefit (expense) of $ 0 million , $ 23 million , $ 0 million , $ 0 million and $ 23 million , respectively.(3) Net of tax (benefit) expense of $ 0 million , $ (3) million , $ 0 million , $ 1 million and $ (2) million , respectively.

The following table summarizes the reclassifications from Accumulated other comprehensive income to the Unaudited Condensed Consolidated Statements of Income:

Amount of Gain (Loss) Reclassified from Accumulated Other

Comprehensive Income into Income

Location of Gain (Loss) Reclassifiedfrom Accumulated Other

Comprehensive Income into Income

Three Months Ended February

28, Nine Months Ended February

28,

(In millions) 2018 2017 2018 2017

Gains (losses) on foreign currency translation adjustment $ — $ 1 $ — $ 1 Other (income) expense, net

Total before tax — 1 — 1

Tax (expense) benefit — — — —

Gain (loss) net of tax — 1 — 1

Gains (losses) on cash flow hedges:

Foreign exchange forwards and options $ 9 $ 24 $ 24 $ 96 Revenues

Foreign exchange forwards and options (41) 87 (17) 260 Cost of sales

Foreign exchange forwards and options (15) 67 (33) 141 Other (income) expense, netInterest rate swaps (1) (2) (5) (2) Interest expense (income), net

Total before tax (48) 176 (31) 495

Tax (expense) benefit (1) 1 2 3

Gain (loss) net of tax (49) 177 (29) 498

Gains (losses) on other (16) 9 (35) 17 Other (income) expense, net

Total before tax (16) 9 (35) 17

Tax (expense) benefit (1) (2) (1) (1)

Gain (loss) net of tax (17) 7 (36) 16

Total net gain (loss) reclassified for the period $ (66) $ 185 $ (65) $ 515

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Note 11 — Operating SegmentsThe Company’s operating segments are evidence of the structure of the Company’s internal organization. The NIKE Brand segments are defined by geographic regions foroperations 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. InJune  2017,  NIKE,  Inc.  announced  a  new company  alignment  designed  to  allow  NIKE  to  better  serve  the  consumer  personally,  at  scale.  As  a  result  of  this  organizationalrealignment,  the Company’s  reportable  operating  segments  for  the NIKE Brand are:  North America;  Europe,  Middle East  & Africa;  Greater  China;  and Asia Pacific  & LatinAmerica, and include results for the NIKE, Jordan and Hurley brands. Certain prior year amounts have been reclassified to conform to fiscal 2018 presentation. This includesreclassified  operating  segment  data  to  reflect  the  changes  in  the  Company’s  operating  structure,  which  became effective  June  1,  2017.  These  changes  had no  impact  onpreviously reported consolidated statements of income, balance sheets, statements of cash flows or statements of shareholders’ equity.

The Company’s NIKE Direct operations are managed within each NIKE Brand geographic operating segment. Converse is also a reportable segment for the Company, andoperates in one industry: the design, marketing, licensing and selling of casual sneakers, apparel and accessories.

Global Brand Divisions is included within the NIKE Brand for presentation purposes to align with the way management views the Company. Global Brand Divisions primarilyrepresents NIKE Brand licensing businesses that are not part of a geographic operating segment, and demand creation, operating overhead and product creation and designexpenses that are centrally managed for the NIKE Brand.

Corporate  consists  largely  of  unallocated  general  and  administrative  expenses,  including  expenses  associated  with  centrally  managed  departments;  depreciation  andamortization  related  to  the  Company’s  headquarters;  unallocated  insurance,  benefit  and  compensation  programs,  including  stock-based  compensation;  and  certain  foreigncurrency gains and losses, including certain hedge gains and losses.

The primary financial measure used by the Company to evaluate performance of individual operating segments is earnings before interest and taxes (commonly referred to as“EBIT”), which represents Net income before Interest expense (income), net and Income tax expense in the Unaudited Condensed Consolidated Statements of Income.

As part of the Company’s centrally managed foreign exchange risk management program, standard foreign currency rates are assigned twice per year to each NIKE Brandentity in the Company’s geographic operating segments and to Converse. These rates are set approximately nine and twelve months in advance of the future selling seasonsto 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 summerselling seasons) based on average market spot rates in the calendar month preceding the date they are established.  Inventories and Cost of sales for geographic operatingsegments and Converse reflect the use of these standard rates to record non-functional currency product purchases in the entity’s functional currency. Differences betweenassigned  standard  foreign  currency  rates  and  actual  market  rates  are  included  in  Corporate,  together  with  foreign  currency  hedge  gains  and  losses  generated  from  theCompany’s centrally managed foreign exchange risk management program and other conversion gains and losses.

Accounts receivable, net ,  Inventories and Property, plant and equipment, net for  operating  segments  are  regularly  reviewed  by  management  and  are  therefore  providedbelow.

Three Months Ended February 28, Nine Months Ended February 28,

(In millions) 2018 2017 2018 2017

REVENUES

North America $ 3,571 $ 3,782 $ 10,980 $ 11,463

Europe, Middle East & Africa 2,299 1,925 6,776 5,979

Greater China 1,336 1,075 3,666 3,150

Asia Pacific & Latin America 1,268 1,122 3,730 3,459

Global Brand Divisions 21 19 64 55

Total NIKE Brand 8,495 7,923 25,216 24,106

Converse 483 498 1,374 1,488

Corporate 6 11 18 79

TOTAL NIKE, INC. REVENUES $ 8,984 $ 8,432 $ 26,608 $ 25,673

EARNINGS BEFORE INTEREST AND TAXES

North America $ 840 $ 980 $ 2,625 $ 2,896

Europe, Middle East & Africa 417 361 1,205 1,159

Greater China 496 381 1,268 1,127

Asia Pacific & Latin America 298 228 849 703

Global Brand Divisions (649) (598) (1,926) (1,988)

Total NIKE Brand 1,402 1,352 4,021 3,897

Converse 69 109 206 340

Corporate (299) (119) (1,075) (478)

Total NIKE, Inc. Earnings Before Interest and Taxes 1,172 1,342 3,152 3,759

Interest expense (income), net 13 19 42 41

TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES $ 1,159 $ 1,323 $ 3,110 $ 3,718

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As of February 28, As of May 31,

(In millions) 2018 2017

ACCOUNTS RECEIVABLE, NET

North America $ 1,594 $ 1,798

Europe, Middle East & Africa 929 690

Greater China 136 102

Asia Pacific & Latin America 734 693

Global Brand Divisions 101 86

Total NIKE Brand 3,494 3,369

Converse 274 297

Corporate 24 11

TOTAL ACCOUNTS RECEIVABLE, NET $ 3,792 $ 3,677

INVENTORIES

North America $ 2,242 $ 2,218

Europe, Middle East & Africa 1,457 1,327

Greater China 613 463

Asia Pacific & Latin America 787 694

Global Brand Divisions 97 68

Total NIKE Brand 5,196 4,770

Converse 277 286

Corporate (107) (1)

TOTAL INVENTORIES $ 5,366 $ 5,055

PROPERTY, PLANT AND EQUIPMENT, NET

North America $ 833 $ 819

Europe, Middle East & Africa 794 709

Greater China 253 225

Asia Pacific & Latin America 350 340

Global Brand Divisions 556 533

Total NIKE Brand 2,786 2,626

Converse 118 125

Corporate 1,394 1,238

TOTAL PROPERTY, PLANT AND EQUIPMENT, NET $ 4,298 $ 3,989

Note 12 — Commitments and ContingenciesAs of February 28, 2018 , the Company had letters of credit outstanding totaling $155 million . These letters of credit were issued primarily for the purchase of inventory andguarantees of the Company’s performance under certain self-insurance and other programs.

There have been no other significant subsequent developments relating to the commitments and contingencies reported on the Company’s latest Annual Report on Form 10-K.

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ITEM 2. Management’s Discussion and Analysis of Financial Conditionand Results of OperationsOverviewNIKE  designs,  develops,  markets  and  sells  athletic  footwear,  apparel,  equipment,  accessories  and  services  worldwide.  We  are  the  largest  seller  of  athletic  footwear  andapparel in the world. We sell our products to retail accounts, through NIKE-owned in-line and factory retail stores and NIKE-owned internet websites and mobile applications(which we refer  to  collectively  as our “NIKE Direct”  operations),  and through a mix of  independent  distributors,  licensees and sales representatives in virtually  all  countriesaround the world. Our goal is to deliver value to our shareholders by delivering sustainable, profitable growth across a global portfolio of branded footwear, apparel, equipmentand accessories businesses. Our strategy is to achieve long-term revenue growth by creating innovative, “must have” products, building deep personal consumer connectionswith our brands and delivering compelling consumer experiences at retail, online and in store.

In the current marketplace environment, we believe there has been a meaningful shift in the way consumers shop for product and make purchasing decisions. Consumers aredemanding a constant flow of fresh and innovative product, have an expectation for superior service and a demand for real-time delivery, all fueled by the shift towards digital.Specifically,  in North America we anticipate continued evolution within the retail  landscape, driven by shifting consumer traffic patterns across digital and physical channels.The evolution of the North America marketplace has resulted in third-party retail store closures; however, we are currently seeing stabilization and momentum building in ourbusiness, fueled by innovative product and NIKE Brand consumer experiences, leveraging digital.

In June 2017, we announced the Consumer Direct Offense, a new company alignment designed to allow NIKE to better serve the consumer personally, at scale. Leveragingthe power of digital, NIKE believes it will drive growth—by accelerating innovation and product creation, moving even closer to the consumer through key cities, and deepeningone-to-one connections. As a result of this organizational realignment, beginning in fiscal 2018, the Company’s reportable operating segments for the NIKE Brand are: NorthAmerica; Europe, Middle East & Africa (EMEA); Greater China; and Asia Pacific & Latin America (APLA).

NIKE, Inc. Revenues for the third quarter of  fiscal  2018  increased  7% to  $9.0  billion  compared  to  the  third  quarter  of  fiscal  2017.  On  a  currency-neutral  basis, Revenuesincreased 3%. Net  loss for  the third  quarter  of  fiscal  2018 was $921 million,  and diluted loss per common share was $0.57 compared to Net  income of  $1,141 million anddiluted earnings per common share of $0.68 for the third quarter of fiscal 2017.

Income before income taxes declined 12% compared to the third quarter of fiscal 2017, primarily driven by higher selling and administrative expense, lower other (income), netand gross margin contraction. The NIKE Brand, which represents over 90% of NIKE, Inc. Revenues , delivered 7% revenue growth. On a currency-neutral basis, NIKE Brandrevenues grew 4%, driven by higher revenues across all international geographies, footwear and apparel and our Sportswear and NIKE Basketball categories. Revenues forConverse decreased 3% and 8% on a reported and currency-neutral basis, respectively, as higher revenues in international markets, primarily from market transitions, weremore than offset by lower revenues in North America.

Our effective tax rate was 179.5% for the third quarter of fiscal 2018, compared to 13.8% for the third quarter of fiscal 2017, primarily reflecting th e estimated impact of the TaxCuts and Jobs Act (the “Tax Act”).

Diluted loss per common share reflects a decline in the diluted weighted average common shares outstanding, compared to the third quarter of fiscal 2017, driven by our sharerepurchase program.

Use of Non-GAAP Financial MeasuresThroughout  this  Quarterly  Report  on  Form  10-Q,  we  discuss  non-GAAP  financial  measures,  including  references  to  wholesale  equivalent  revenues  and  currency-neutralrevenues, which should be considered in addition to, and not in lieu of,  the financial  measures calculated and presented in accordance with accounting principles generallyaccepted 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 Brandmarket footprint if we had no NIKE Direct operations. NIKE Brand wholesale equivalent revenues consist of (1) sales to external wholesale customers and (2) internal salesfrom our wholesale operations to our NIKE Direct operations, which are charged at prices that are comparable to prices 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 trendsexcluding the impact of translation arising from foreign currency exchange rate fluctuations.

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 underlyingbusiness  performance  and  trends.  However,  references  to  wholesale  equivalent  revenues  and  currency-neutral  revenues  should  not  be  considered  in  isolation  or  as  asubstitute 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 byother 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) 2018 2017 % Change 2018 2017 % Change

Revenues $ 8,984 $ 8,432 7% $ 26,608 $ 25,673 4%

Cost of sales 5,046 4,682 8% 15,030 14,184 6%

Gross profit 3,938 3,750 5% 11,578 11,489 1%

Gross margin 43.8% 44.5% 43.5% 44.8%

Demand creation expense 862 749 15% 2,594 2,552 2%

Operating overhead expense 1,905 1,747 9% 5,797 5,346 8%

Total selling and administrative expense 2,767 2,496 11% 8,391 7,898 6%

% of revenues 30.8% 29.6% 31.5% 30.8%

Interest expense (income), net 13 19 — 42 41 —

Other (income) expense, net (1) (88) — 35 (168) —

Income before income taxes 1,159 1,323 -12% 3,110 3,718 -16%

Income tax expense 2,080 182 1,043% 2,314 486 376%

Effective tax rate 179.5% 13.8% 74.4% 13.1%

NET (LOSS) INCOME $ (921) $ 1,141 -181% $ 796 $ 3,232 -75%

Diluted (loss) earnings per common share $ (0.57) $ 0.68 -184% $ 0.48 $ 1.91 -75%

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Consolidated Operating Results

Revenues Three Months Ended February 28, Nine Months Ended February 28,

(Dollars in millions) 2018 2017 % Change

% ChangeExcludingCurrency

Changes (1) 2018 2017 % Change

% ChangeExcludingCurrency

Changes (1)

NIKE, Inc. Revenues:

NIKE Brand Revenues by:

Footwear $ 5,605 $ 5,314 5 % 2 % $ 16,124 $ 15,608 3 % 2 %

Apparel 2,555 2,269 13 % 9 % 7,968 7,353 8 % 7 %

Equipment 314 321 -2 % -6 % 1,060 1,090 -3 % -4 %

Global Brand Divisions (2) 21 19 11 % 11 % 64 55 16 % 15 %

TOTAL NIKE BRAND 8,495 7,923 7 % 4 % 25,216 24,106 5 % 3 %

Converse 483 498 -3 % -8 % 1,374 1,488 -8 % -10 %

Corporate (3) 6 11 — — 18 79 — —

TOTAL NIKE, INC. REVENUES $ 8,984 $ 8,432 7 % 3 % $ 26,608 $ 25,673 4 % 2 %Supplemental NIKE BrandRevenues Details:

NIKE Brand Revenues by:

Sales to Wholesale Customers $ 5,863 $ 5,618 4 % 1 % $ 17,522 $ 17,316 1 % 0 %

Sales through NIKE Direct 2,611 2,286 14 % 10 % 7,630 6,735 13 % 12 %

Global Brand Divisions (2) 21 19 11 % 11 % 64 55 16 % 15 %

TOTAL NIKE BRAND REVENUES $ 8,495 $ 7,923 7 % 4 % $ 25,216 $ 24,106 5 % 3 %(1) The percentage change has been calculated using actual exchange rates in use during the comparative prior year period to enhance the visibility of the underlying

business trends by excluding the impact of translation arising from foreign currency exchange rate fluctuations, which is considered a non-GAAP financial measure.(2) Global Brand Divisions revenues are primarily attributable to NIKE Brand licensing businesses 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.

On a currency-neutral basis, NIKE, Inc. Revenues grew 3% and 2% for the third quarter and first nine months of fiscal 2018, respectively, driven by growth in the NIKE Brand.For both periods, revenue growth was broad-based across all international NIKE Brand geographies. Growth in Greater China increased NIKE, Inc. Revenues approximately 3and 2 percentage points for the third quarter and first nine months of fiscal 2018, respectively. Higher revenues in EMEA and APLA contributed approximately 2 percentagepoints and 1 percentage point, respectively, of growth to NIKE, Inc. Revenues , for both periods. For the third quarter, lower revenues for North America reduced NIKE, Inc.Revenues by approximately 3 percentage points. For the first nine months, lower revenues from North America and Converse reduced NIKE, Inc. Revenues by approximately2 percentage points and 1 percentage point, respectively.

Currency-neutral NIKE Brand footwear revenues increased 2% for both the third quarter and first nine months of fiscal 2018. Growth for the third quarter was driven by higherrevenues in most key categories,  led by Sportswear and NIKE Basketball,  partially  offset  by declines primarily concentrated in the Jordan Brand. For the first  nine months,growth in Sportswear and NIKE Basketball was partially offset by lower revenues in several other categories, most notably the Jordan Brand. Unit sales of footwear increasedby 1% for  the third quarter,  while higher  average selling price (ASP) per pair  contributed approximately  1 percentage point  of  footwear  revenue growth,  primarily  driven byhigher ASP in our NIKE Direct business, which more than offset lower full-price ASP. For the first nine months of fiscal 2018, unit sales of footwear increased 2%, while ASPper pair was unchanged as the favorable impact of growth in our NIKE Direct business was offset by lower full-price ASP.

Currency-neutral  NIKE  Brand  apparel  revenues  grew  9%  and  7%  for  the  third  quarter  and  first  nine  months  of  fiscal  2018,  respectively,  driven  by  growth  in  most  keycategories,  including  strong  growth  in  Sportswear  and  NIKE  Basketball.  Unit  sales  of  apparel  increased  2%  for  both  periods,  while  higher  ASP  per  unit  contributedapproximately 7 and 5 percentage points of apparel revenue growth for the third quarter and first nine months of fiscal 2018, respectively.  The higher ASP per unit for bothperiods was driven by higher full-price and off-price ASPs, as well as higher ASP in our NIKE Direct business.

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For  the third  quarter  and first  nine months of  fiscal  2018,  NIKE Direct  revenues represented approximately  31% and 30%,  respectively,  of  our  total  NIKE Brand revenues,compared to 29% and 28% for the third quarter and first nine months of fiscal 2017, respectively. On a currency-neutral basis, NIKE Direct revenues increased 10% for thethird quarter of fiscal 2018, driven by digital commerce sales growth of 18%, the addition of new stores and comparable store sales growth of 3%. For the first nine months offiscal 2018, currency-neutral NIKE Direct revenues grew 12%, driven by a 22% increase in digital commerce sales, the addition of new stores and 4% growth in comparablestore sales. Comparable store sales include revenues from NIKE-owned in-line and factory stores for which all three of the following requirements have been met: (1) the storehas 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 withinthe past  year.  On a reported basis,  digital  commerce sales through NIKE-owned websites and mobile applications,  which are not included in comparable store sales,  were$774 million and $2,051 million for the third quarter and first nine months of fiscal 2018, respectively, compared to $632 million and $1,659 million for the third quarter and firstnine months of fiscal 2017, respectively. Digital commerce sales represented approximately 30% and 27% of our total NIKE Direct revenues for the third quarter and first ninemonths of fiscal 2018, respectively, and approximately 28% and 25% for the third quarter and first nine months of fiscal 2017, respectively.

Gross Margin Three Months Ended February 28, Nine Months Ended February 28,

(Dollars in millions) 2018 2017 % Change 2018 2017 % Change

Gross profit $ 3,938 $ 3,750 5% $ 11,578 $ 11,489 1%

Gross margin 43.8% 44.5% (70) bps 43.5% 44.8% (130) bps

For the third quarter and first nine months of fiscal 2018, our consolidated gross margin was 70 and 130 basis points lower than the respective prior year periods, primarilydriven by the following factors:

• Lower NIKE Brand full-price ASP, on a wholesale equivalent basis, (decreasing gross margin approximately 50 basis points for the third quarter and 30 basis pointsfor the first nine months) primarily due to product mix;

• Lower NIKE Brand product costs, on a wholesale equivalent basis, (increasing gross margin approximately 80 basis points for the third quarter and 20 basis pointsfor the first nine months) driven by product mix;

• Unfavorable changes in net foreign currency exchange rates, including hedges, (decreasing gross margin approximately 90 basis points for the third quarter and 110basis points in the first nine months);

• Growth in our higher margin NIKE Direct business for the third quarter (increasing gross margin approximately 30 basis points) in part reflecting favorable off-pricemix;  for  the  first  nine  months,  NIKE Direct  margin  was lower  (decreasing  gross  margin  approximately  20 basis  points),  reflecting  a  slightly  higher  mix  of  off-pricesales; and

• Higher other costs for the third quarter (decreasing gross margin approximately 40 basis points) primarily reflecting higher obsolescence and third-party royalty costs;for the first nine months, other costs were lower (increasing gross margin approximately 20 basis points).

Total Selling and Administrative Expense Three Months Ended February 28, Nine Months Ended February 28,

(Dollars in millions) 2018 2017 % Change 2018 2017 % Change

Demand creation expense (1) $ 862 $ 749 15% $ 2,594 $ 2,552 2%

Operating overhead expense 1,905 1,747 9% 5,797 5,346 8%

Total selling and administrative expense $ 2,767 $ 2,496 11% $ 8,391 $ 7,898 6%

% of revenues 30.8% 29.6% 120 bps 31.5% 30.8% 70 bps

(1) Demand creation expense consists of advertising and promotion costs, including costs of endorsement contracts, television, digital and print advertising, brand events andretail brand presentation.

Demand creation expense increased 15% for the third quarter of fiscal 2018 primarily driven by higher sports marketing costs, as well as higher advertising, in part to supportproduct launches. For the first nine months of fiscal 2018, Demand creation expense increased 2%, reflecting higher investments in sports marketing, which were mostly offsetby lower marketing costs due to prior year investments to support key sporting events, including the Rio Olympics and European Football Championship. Changes in foreigncurrency  exchange  rates  increased  Demand creation expense by  approximately  4  and  2  percentage  points  for  the  third  quarter  and  first  nine  months  of  fiscal  2018,respectively.

Operating overhead expense increased 9% for the third quarter of fiscal 2018 primarily driven by higher administrative costs, as well as continued investments in our growingNIKE Direct  business.  For the first  nine months of  fiscal  2018, Operating overhead expense increased 8% due to higher  administrative costs,  one-time wage-related costsassociated with the Consumer Direct Offense organizational realignment and investments in our NIKE Direct business. Changes in foreign currency exchange rates increasedOperating overhead expense by approximately 3 percentage points and 1 percentage point for the third quarter and first nine months of fiscal 2018, respectively.

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Other (Income) Expense, Net Three Months Ended February 28, Nine Months Ended February 28,

(In millions) 2018 2017 2018 2017

Other (income) expense, net $ (1) $ (88) $ 35 $ (168)

Other (income) expense, net comprises  foreign  currency  conversion  gains  and  losses  from  the  re-measurement  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 ofbusiness.

For the third quarter of fiscal  2018, Other (income) expense, net decreased from $88 million of  other  income, net  in the prior  year to $1 million of  other  income,  net  in thecurrent year, primarily due to a $90 million net detrimental change in foreign currency conversion gains and losses, including hedges.

For the first nine months of fiscal 2018, Other (income) expense, net changed from $168 million of other income, net in the prior year to $35 million of other expense, net in thecurrent year, primarily due to a $208 million net detrimental change in foreign currency conversion gains and losses, including hedges.

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 unfavorable impacts of approximately $18 million and $130 million on our  Income before income taxesfor the third quarter and first nine months of fiscal 2018, respectively.

Income Taxes Three Months Ended February 28, Nine Months Ended February 28, 2018 2017 % Change 2018 2017 % Change

Effective tax rate 179.5% 13.8% — 74.4% 13.1% —

Our effective tax rate was 179.5% for the third quarter of fiscal 2018, reflecting the impact of the Tax Act. During the quarter, we recorded additional income tax expense of$2,030  million  as  a  result  of  the  enactment  of  the  Tax  Act,  primarily  related  to  the  transition  tax  on  our  accumulated  foreign  earnings.  This  amount  was  recorded  as  aprovisional  estimate  and  is  subject  to  change  over  the  measurement  period,  which  should  not  extend  beyond  one  year  from  the  date  of  enactment.  The  increase  in  theeffective tax rate resulting from the Tax Act was partially offset by the tax benefit from stock-based compensation in the current period as a result of the adoption of ASU 2016-09 in the first quarter of fiscal 2018.

Our effective tax rate was 74.4% for the first nine months of fiscal 2018, also reflecting the impact of the Tax Act and the tax benefit as a result of the adoption of ASU 2016-09in the first quarter of fiscal 2018.

Refer to Note 6 — Income Taxes in the accompanying Notes to the Unaudited Condensed Consolidated Financial Statements for additional information on the impact of theTax Act.

We expect our fourth quarter fiscal 2018 effective tax rate will be approximately 10% to 12% before taking into account the impacts of potential adjustments to our provisionalestimate and continued legislative and regulatory guidance as to the application of the Tax Act.

Operating SegmentsOur operating segments are evidence of the structure of  the Company’s internal  organization.  The NIKE Brand segments are defined by geographic regions for operationsparticipating 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; Greater China; and Asia Pacific & Latin America, andinclude results for the NIKE, Jordan and Hurley brands.

The Company’s NIKE Direct operations are managed within each geographic operating segment. Converse is also a reportable segment for the Company, and operates in oneindustry: the design, marketing, licensing and selling of casual sneakers, apparel and accessories.

Certain prior year amounts have been reclassified to conform to fiscal 2018 presentation. This includes reclassified geographic operating segment data to reflect the changesin  the  Company’s  operating  structure,  which  became  effective  June  1,  2017.  These  changes  had  no  impact  on  previously  reported  consolidated  results  of  operations  orshareholders’ equity.

As part of our centrally managed foreign exchange risk management program, standard foreign currency rates are assigned twice per year to each NIKE Brand entity in ourgeographic  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 andConverse  reflect  the  use  of  these  standard  rates  to  record  non-functional  currency  product  purchases  into  the  entity’s  functional  currency.  Differences  between  assignedstandard  foreign  currency  rates  and  actual  market  rates  are  included  in  Corporate,  together  with  foreign  currency  hedge  gains  and  losses  generated  from  our  centrallymanaged foreign exchange risk management program and other conversion gains and losses.

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The breakdown of revenues is as follows:

Three Months Ended February 28, Nine Months Ended February 28,

(Dollars in millions) 2018 2017 (1) % Change

% ChangeExcludingCurrency

Changes (2) 2018 2017 (1) % Change

% ChangeExcludingCurrency

Changes (2)

North America $ 3,571 $ 3,782 -6% -6% $ 10,980 $ 11,463 -4% -4%

Europe, Middle East & Africa 2,299 1,925 19% 9% 6,776 5,979 13% 9%

Greater China 1,336 1,075 24% 19% 3,666 3,150 16% 15%

Asia Pacific & Latin America 1,268 1,122 13% 11% 3,730 3,459 8% 8%

Global Brand Divisions (3) 21 19 11% 11% 64 55 16% 15%

TOTAL NIKE BRAND 8,495 7,923 7% 4% 25,216 24,106 5% 3%

Converse 483 498 -3% -8% 1,374 1,488 -8% -10%

Corporate (4) 6 11 — — 18 79 — —

TOTAL NIKE, INC. REVENUES $ 8,984 $ 8,432 7% 3% $ 26,608 $ 25,673 4% 2%(1) Certain prior year amounts have been reclassified to conform to fiscal 2018 presentation. This includes reclassified operating segment data to reflect the changes in the

Company ’ s operating structure, which became effective June 1, 2017. These changes had no impact on previously reported consolidated results of operations orshareholders ’ equity.

(2) The percentage change has been calculated using actual exchange rates in use during the comparative prior year period to enhance the visibility of the underlyingbusiness trends by excluding the impact of translation arising from foreign currency exchange rate fluctuations, which is considered a non-GAAP financial measure.

(3) Global Brand Divisions revenues are primarily attributable to NIKE Brand licensing businesses that are not part of a geographic operating segment.(4) 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 earnings before interest and taxes (commonly referred to as“EBIT”), which represents Net income before Interest expense (income), net and Income tax expense in the Unaudited Condensed Consolidated Statements of Income. Asdiscussed in Note 11 — Operating Segments  in the accompanying Notes to the Unaudited Condensed Consolidated Financial  Statements,  certain corporate costs are notincluded in EBIT of our operating segments.

The breakdown of earnings before interest and taxes is as follows:

Three Months Ended February 28, Nine Months Ended February 28,

(Dollars in millions) 2018 2017 (1) % Change 2018 2017 (1) % Change

North America $ 840 $ 980 -14% $ 2,625 $ 2,896 -9%

Europe, Middle East & Africa 417 361 16% 1,205 1,159 4%

Greater China 496 381 30% 1,268 1,127 13%

Asia Pacific & Latin America 298 228 31% 849 703 21%

Global Brand Divisions (649) (598) -9% (1,926) (1,988) 3%

TOTAL NIKE BRAND 1,402 1,352 4% 4,021 3,897 3%

Converse 69 109 -37% 206 340 -39%

Corporate (299) (119) -151% (1,075) (478) -125%TOTAL NIKE, INC. EARNINGS BEFORE INTEREST ANDTAXES 1,172 1,342 -13% 3,152 3,759 -16%

Interest expense (income), net 13 19 — 42 41 —

TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES $ 1,159 $ 1,323 -12% $ 3,110 $ 3,718 -16%(1) Certain prior year amounts have been reclassified to conform to fiscal 2018 presentation. This includes reclassified operating segment data to reflect the changes in the

Company ’ s operating structure, which became effective June 1, 2017. These changes had no impact on previously reported consolidated results of operations orshareholders ’ equity.

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North America Three Months Ended February 28, Nine Months Ended February 28,

(Dollars in millions) 2018 2017 % Change

% ChangeExcludingCurrencyChanges 2018 2017 % Change

% ChangeExcludingCurrencyChanges

Revenues by:

Footwear $ 2,293 $ 2,490 -8% -8% $ 6,797 $ 7,227 -6% -6%

Apparel 1,153 1,154 0% 0% 3,731 3,744 0% 0%

Equipment 125 138 -9% -9% 452 492 -8% -8%

TOTAL REVENUES $ 3,571 $ 3,782 -6% -6% $ 10,980 $ 11,463 -4% -4%

Revenues by:

Sales to Wholesale Customers $ 2,382 $ 2,650 -10% -10% $ 7,507 $ 8,111 -7% -8%

Sales through NIKE Direct 1,189 1,132 5% 5% 3,473 3,352 4% 4%

TOTAL REVENUES $ 3,571 $ 3,782 -6% -6% $ 10,980 $ 11,463 -4% -4%

EARNINGS BEFORE INTEREST AND TAXES $ 840 $ 980 -14% $ 2,625 $ 2,896 -9%  

On a currency-neutral basis, North America revenues for the third quarter and first nine months of fiscal 2018 decreased 6% and 4%, respectively. For both periods, growth inour Sportswear and NIKE Basketball categories was more than offset by declines in all other key categories, most notably the Jordan Brand and Running. For the third quarterof  fiscal  2018,  NIKE Direct  revenues increased 5% as growth in digital  commerce sales and the addition of  new stores more than offset  a 1% decline in comparable storesales. For the first nine months of fiscal 2018, NIKE Direct revenues increased 4% driven by the addition of new stores and digital commerce sales growth, while comparablestore sales were flat.

Footwear revenues declined for the third quarter and first nine months of fiscal 2018 as lower revenues primarily in our Jordan Brand and Running categories more than offsethigher revenues in Sportswear. For the third quarter and first nine months of fiscal 2018, unit sales of footwear decreased 9% and 7%, respectively, while higher ASP per pairreduced the impact of lower footwear revenues by approximately 1 percentage point for both periods. Higher ASP per pair for both periods was driven by the favorable impactof growth in our NIKE Direct business, which more than offset lower full-price ASP primarily due to product mix.

Apparel revenues were flat for both the third quarter and first nine months of fiscal 2018 as growth in our NIKE Basketball and Sportswear categories was offset by declines inother  categories.  Unit  sales of  apparel  decreased 7% and 5% for  the third  quarter  and first  nine months of  fiscal  2018,  respectively,  while  higher  ASP per  unit  contributedapproximately 7 and 5 percentage points of apparel revenue growth for the respective periods. The increase in ASP per unit for both periods was primarily attributable to higherNIKE Direct ASP and, to a lesser extent, higher full-price ASP and favorable changes in off-price sales.

EBIT  decreased  14%  for  the  third  quarter  of  fiscal  2018  resulting  from  lower  revenues,  higher  selling  and  administrative  expense  and,  to  a  lesser  extent,  gross  margincontraction. Gross margin declined 20 basis points as lower product input costs and growth in our higher margin NIKE Direct business were more than offset by lower full-priceASP,  primarily  due  to  product  mix.  Selling  and  administrative  expense  grew  due  to  higher  demand  creation  and  operating  overhead  expenses.  The  increase  in  demandcreation expense was primarily due to higher sports marketing costs, while the increase in operating overhead expense was driven by continued investments in NIKE Direct.

EBIT  declined  9% for  the  first  nine  months  of  fiscal  2018,  reflecting  lower  revenues,  higher  selling  and  administrative  expense  and  slight  gross  margin  contraction.  Grossmargin  declined  10  basis  points  as  lower  full-price  ASP  more  than  offset  the  favorable  impact  of  growth  in  our  NIKE  Direct  business  and  lower  other  costs.  Selling  andadministrative expense increased as lower demand creation expense was more than offset by higher operating overhead expense. The decrease in demand creation expensewas primarily  due to  the comparison to prior  year  investments  to  support  key sporting events,  including the Rio Olympics,  as well  as lower retail  brand presentation  costs.These decreases were partially offset  by higher sports marketing costs and advertising for the first  nine months of fiscal  2018, in part  to support  the launch of the NationalBasketball Association sponsorship. The increase in operating overhead expense was due to continued investments in our NIKE Direct business.

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Europe, Middle East & Africa Three Months Ended February 28, Nine Months Ended February 28,

(Dollars in millions) 2018 2017 % Change

% ChangeExcludingCurrencyChanges 2018 2017 % Change

% ChangeExcludingCurrencyChanges

Revenues by:

Footwear $ 1,489 $ 1,271 17% 7% $ 4,250 $ 3,844 11% 6%

Apparel 713 566 26% 15% 2,199 1,838 20% 15%

Equipment 97 88 10% 0% 327 297 10% 6%

TOTAL REVENUES $ 2,299 $ 1,925 19% 9% $ 6,776 $ 5,979 13% 9%

Revenues by:

Sales to Wholesale Customers $ 1,705 $ 1,428 19% 9% $ 4,952 $ 4,474 11% 6%

Sales through NIKE Direct 594 497 20% 9% 1,824 1,505 21% 16%

TOTAL REVENUES $ 2,299 $ 1,925 19% 9% $ 6,776 $ 5,979 13% 9%EARNINGS BEFORE INTERESTAND TAXES $ 417 $ 361 16% $ 1,205 $ 1,159 4%

On a currency-neutral basis, Europe, Middle East & Africa revenues grew 9% for both the third quarter and first nine months of fiscal 2018, driven by higher revenues in everyterritory, most notably the UK & Ireland, which grew 21% and 24% for the respective periods. Revenues increased in most key categories for both periods, led by Sportswear.NIKE Direct revenues increased 9% for the third quarter of fiscal 2018 driven by strong digital commerce sales growth, the addition of new stores and comparable store salesgrowth of 1%. For the first nine months of fiscal 2018, NIKE Direct revenues increased 16% fueled by digital commerce sales growth, comparable store sales growth of 8% andthe addition of new stores.

Currency-neutral footwear revenue growth for the third quarter and first nine months of fiscal 2018 was driven by higher revenues in most key categories, led by Sportswear.Unit sales of footwear increased 6% for both the third quarter and first nine months of fiscal 2018. Higher ASP per pair for the third quarter contributed approximately 1percentage point of footwear revenue growth as higher NIKE Direct ASP more than offset lower full-price ASP. For the first nine months, ASP per pair was flat as higher off-price ASP was offset by lower full-price ASP.

The increase in currency-neutral apparel revenues for the third quarter and first nine months of fiscal 2018 was due to growth in nearly all key categories, most notablySportswear, with NIKE Basketball and Football (Soccer) also driving growth for the third quarter. Unit sales of apparel increased 10% and 12% for the third quarter and firstnine months of fiscal 2018, respectively, and higher ASP per unit contributed approximately 5 and 3 percentage points of apparel revenue growth for the respective periods.Higher ASP per unit for the third quarter was driven by higher full-price and NIKE Direct ASPs, while ASP growth for the year-to-date period was attributable to higher full-priceand off-price ASPs.

On a reported basis, EBIT increased 16% for the third quarter of fiscal 2018 as strong revenue growth and selling and administrative expense leverage more than offset lowergross margin. Gross margin declined 110 basis points due to unfavorable standard foreign currency exchange rates, which were only partially offset by lower product costs.Selling and administrative expense increased due to higher demand creation and operating overhead expense. The increase in demand creation expense was due to highersports marketing costs and, to a lesser extent, higher advertising costs. Operating overhead expense was higher due to increased investments in our NIKE Direct business.

Reported EBIT increased 4% for the first nine months of fiscal 2018, driven by revenue growth and selling and administrative expense leverage, partially offset by gross margincontraction. Gross margin declined 210 basis points as lower product costs were more than offset by unfavorable standard foreign currency exchange rates, lower full-priceASP due to product mix, and lower NIKE Direct margin. Selling and administrative expense increased due to higher operating overhead expense, primarily resulting frominvestments in our NIKE Direct business. Demand creation expense also increased as higher sports marketing and advertising costs more than offset lower marketingexpenses as a result of prior year investments to support the Rio Olympics and European Football Championship.

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Greater China Three Months Ended February 28, Nine Months Ended February 28,

(Dollars in millions) 2018 2017 % Change

% ChangeExcludingCurrencyChanges 2018 2017 % Change

% ChangeExcludingCurrencyChanges

Revenues by:

Footwear $ 939 $ 776 21% 16% $ 2,493 $ 2,155 16% 14%

Apparel 368 271 36% 30% 1,074 895 20% 19%

Equipment 29 28 4% -4% 99 100 -1% -2%

TOTAL REVENUES $ 1,336 $ 1,075 24% 19% $ 3,666 $ 3,150 16% 15%

Revenues by:

Sales to Wholesale Customers $ 848 $ 703 21% 16% $ 2,286 $ 2,071 10% 9%

Sales through NIKE Direct 488 372 31% 25% 1,380 1,079 28% 26%

TOTAL REVENUES $ 1,336 $ 1,075 24% 19% $ 3,666 $ 3,150 16% 15%EARNINGS BEFORE INTERESTAND TAXES $ 496 $ 381 30% $ 1,268 $ 1,127 13%

On a currency-neutral basis, Greater China revenues increased 19% and 15% for the third quarter and first nine months of fiscal 2018, respectively. Most key categories grewfor  both  periods,  led  by  Sportswear,  Running,  the  Jordan  Brand  and  NIKE  Basketball.  NIKE  Direct  revenues  increased  25% for  the  third  quarter,  fueled  by  strong  digitalcommerce sales growth, comparable store sales growth of 13% and the addition of new stores. NIKE Direct revenues grew 26% for the first nine months of fiscal 2018, drivenby significant digital commerce sales growth, the addition of new stores and comparable store sales growth of 8%.

The  currency-neutral  increase  in  footwear  revenues  for  the  third  quarter  and  first  nine  months  of  fiscal  2018  was  attributable  to  growth  in  most  key  categories,  led  bySportswear,  Running,  the  Jordan  Brand  and  NIKE  Basketball.  Unit  sales  of  footwear  for  the  third  quarter  and  first  nine  months  of  fiscal  2018  increased  23%  and  18%,respectively, while lower ASP per pair reduced footwear revenues by approximately 7 and 4 percentage points for the respective periods. Lower ASP per pair for both periodswas driven by lower full-price ASP resulting from product mix, with unfavorable off-price mix also impacting the year-to-date period.

Currency-neutral apparel revenue growth for the third quarter was driven by higher revenues in most key categories, while all key categories grew for the first nine months offiscal 2018. For both periods, category revenue growth was led by Sportswear, the Jordan Brand and NIKE Basketball. Unit sales of apparel for the third quarter and first ninemonths of fiscal 2018 increased 18% and 13%, respectively, while higher ASP per unit contributed approximately 12 and 6 percentage points of apparel revenue growth for therespective periods. The increase in ASP per unit for both periods was attributable to higher full-price, off-price and NIKE Direct ASPs.

On a reported basis,  EBIT grew 30% for  the third quarter  of  fiscal  2018 as strong revenue growth and selling and administrative  expense leverage more than offset  grossmargin contraction. Gross margin declined 170 basis points as lower product costs were more than offset by unfavorable standard foreign currency exchange rates, lower full-price  ASP due to  product  mix  and lower  off-price  margin.  Selling  and administrative  expense increased due to  higher  operating  overhead and demand creation  expenses.Operating overhead expense grew primarily due to higher wage-related expense, investments in our NIKE Direct business and higher administrative costs.  The increase indemand creation expense was driven by higher marketing and sports marketing costs.

Reported EBIT increased 13% for  the first  nine months of  fiscal  2018,  driven by strong revenue growth and selling and administrative  expense leverage,  partially  offset  bylower gross margin. Gross margin contracted 270 basis points as higher full-price ASP and lower product input costs were more than offset by unfavorable standard foreigncurrency exchange rates and lower off-price margin. Selling and administrative expense increased due to growth in operating overhead expense largely reflecting continuedinvestments in our NIKE Direct business. Demand creation also grew, primarily driven by higher retail brand presentation costs.

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Asia Pacific & Latin America Three Months Ended February 28, Nine Months Ended February 28,

(Dollars in millions) 2018 2017 % Change

% ChangeExcludingCurrencyChanges 2018 2017 % Change

% ChangeExcludingCurrencyChanges

Revenues by:

Footwear $ 884 $ 777 14% 12% $ 2,584 $ 2,382 8% 9%

Apparel 321 278 15% 13% 964 876 10% 11%

Equipment 63 67 -6% -7% 182 201 -9% -9%

TOTAL REVENUES $ 1,268 $ 1,122 13% 11% $ 3,730 $ 3,459 8% 8%

Revenues by:

Sales to Wholesale Customers $ 928 $ 837 11% 9% $ 2,777 $ 2,660 4% 5%

Sales through NIKE Direct 340 285 19% 16% 953 799 19% 20%

TOTAL REVENUES $ 1,268 $ 1,122 13% 11% $ 3,730 $ 3,459 8% 8%EARNINGS BEFORE INTERESTAND TAXES $ 298 $ 228 31% $ 849 $ 703 21%

On a currency-neutral basis, Asia Pacific & Latin America revenues for the third quarter and first nine months of fiscal 2018 increased 11% and 8%, respectively,  driven byhigher revenues in every territory. Territory revenue growth was broad-based and led by SOCO (which comprises Argentina, Uruguay and Chile), which grew 19% and 16% forthe  respective  periods.  Nearly  every  key  category  grew  for  both  periods,  most  notably  Sportswear.  For  the  third  quarter,  NIKE  Direct  revenues  grew  16%,  fueled  bycomparable store sales growth of 8%, higher digital commerce sales and the addition of new stores. Revenues for NIKE Direct increased 20% for the first nine months, drivenby comparable sales growth of 10%, the addition of new stores and digital commerce sales growth.

The increase  in  currency-neutral  footwear  revenues  for  the  third  quarter  and first  nine  months  of  fiscal  2018 was attributable  to  growth  in  nearly  all  key  categories,  led  bySportswear. Unit sales of footwear increased 6% for both the third quarter and first nine months of fiscal 2018, while higher ASP per pair contributed approximately 6 and 3percentage points of footwear revenue growth for the respective periods. Higher ASP per pair for both periods was primarily driven by higher full-price ASP, with higher NIKEDirect ASP also favorably impacting the third quarter and improved off-price ASP favorably impacting the year-to-date period.

Currency-neutral  growth  in  apparel  revenues  for  the  third  quarter  and  first  nine  months  of  fiscal  2018  was  driven  by  higher  revenues  in  every  key  category,  most  notablySportswear and, to a lesser extent, Men’s Training, NIKE Basketball and the Jordan Brand. Unit sales of apparel increased 9% for both the third quarter and first nine monthsof fiscal 2018, while higher ASP per unit contributed approximately 4 and 2 percentage points of apparel revenue growth for the respective periods. Higher ASP per unit for thethird quarter was primarily due to higher full-price ASP and favorable off-price mix. Higher ASP per unit for the first nine months of fiscal 2018 was driven by higher off-priceASP, favorable off-price mix and higher full-price ASP.

On a reported basis, EBIT increased 31% for the third quarter of fiscal 2018 due to revenue growth, gross margin expansion and selling and administrative expense leverage.Gross margin expanded 200 basis points as higher full-price ASP and favorable standard foreign currency exchange rates more than offset higher product costs. Selling andadministrative expense increased due to higher operating overhead as a result of investments in our growing NIKE Direct business. Demand creation expense also increasedprimarily due to higher advertising costs.

For the first nine months of fiscal 2018, reported EBIT increased 21% due to revenue growth, gross margin expansion and lower selling and administrative expense. Grossmargin increased 40 basis points as higher products costs were more than offset by favorable standard foreign currency exchange rates and higher full-price ASP. Selling andadministrative  expense decreased as significantly  lower demand creation expense more than offset  higher  operating overhead expense.  The decrease in  demand creationexpense was primarily attributable to lower marketing costs as a result of prior year investments to support the Rio Olympics. Operating overhead expense increased primarilyas a result of continued investments in our growing NIKE Direct business.

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Global Brand Divisions Three Months Ended February 28, Nine Months Ended February 28,

(Dollars in millions) 2018 2017 % Change

% ChangeExcludingCurrencyChanges 2018 2017 % Change

% ChangeExcludingCurrencyChanges

Revenues $ 21 $ 19 11% 11% $ 64 $ 55 16% 15%

(Loss) Before Interest and Taxes $ (649) $ (598) 9% $ (1,926) $ (1,988) -3%

Global Brand Divisions primarily represent demand creation, operating overhead and product creation and design expenses that are centrally managed for the NIKE Brand.Revenues for Global Brand Divisions are primarily attributable to NIKE Brand licensing businesses that are not part of a geographic operating segment.

Global  Brand  Divisions’  loss  before  interest  and  taxes  increased  9%  for  the  third  quarter  of  fiscal  2018  primarily  due  to  higher  operating  overhead  and  demand  creationexpense. Operating overhead grew as higher administrative costs more than offset lower wage-related costs, while demand creation expense increased primarily due to higheradvertising costs to support brand events, including product launches.

Global Brand Divisions’ loss before interest and taxes decreased 3% for the first nine months of fiscal 2018 due to lower demand creation expense as higher sports marketingcosts  were  more  than  offset  by  lower  advertising  expenses,  largely  resulting  from  investments  in  the  prior  year  to  support  the  Rio  Olympics  and  the  European  FootballChampionship. Operating overhead was flat as higher administrative costs were offset by lower wage-related costs.

Converse Three Months Ended February 28, Nine Months Ended February 28,

(Dollars in millions) 2018 2017 % Change

% ChangeExcludingCurrencyChanges 2018 2017 % Change

% ChangeExcludingCurrencyChanges

Revenues $ 483 $ 498 -3 % -8 % $ 1,374 $ 1,488 -8 % -10 %

Earnings Before Interest and Taxes $ 69 $ 109 -37 % $ 206 $ 340 -39 %

In  territories  we  define  as  “direct  distribution  markets,”  Converse  designs,  markets  and  sells  products  directly  to  distributors  and  wholesale  customers,  and  to  consumersthrough direct to consumer operations. The largest direct distribution markets are the United States, the United Kingdom and China. We do not own the Converse trademarksin Japan and accordingly  do not  earn revenues in  Japan.  Territories  other  than direct  distribution  markets  and Japan are serviced by third-party  licensees who pay royaltyrevenues to Converse for the use of its registered trademarks and other intellectual property rights.

On a currency-neutral basis, revenues for Converse declined 8% and 10% for the third quarter and first nine months of fiscal 2018, respectively. Comparable direct distributionmarkets (i.e., markets served under a direct distribution model for comparable periods in the current and prior fiscal years) declined 11% and 12% for the third quarter and firstnine  months  of  fiscal  2018,  respectively,  reducing  total  Converse  revenues  by  approximately  10  and  12  percentage  points  for  the  respective  periods.  Comparable  directdistribution  market  unit  sales  decreased  15% for  both  the  third  quarter  and  first  nine  months  of  fiscal  2018,  while  higher  ASP  per  unit  contributed  approximately  4  and  3percentage points, respectively, of direct distribution markets revenue growth. On a territory basis, the decrease in comparable direct distribution markets revenues for the thirdquarter  and  first  nine  months  of  fiscal  2018  was  primarily  attributable  to  lower  revenues  in  the  United  States,  in  part  reflecting  efforts  to  manage  inventory  levels  in  themarketplace, partially offset by growth in China for both periods. Conversion of markets from licensed to direct distribution increased total Converse revenues by approximately3 percentage points for both the third quarter and first nine months of fiscal 2018. Revenues from comparable licensed markets decreased 15% and 14% for the third quarterand first nine months of fiscal 2018, respectively, reducing total Converse revenues by approximately 1 percentage point for both periods, driven by lower revenues in LatinAmerica .

Reported EBIT for Converse declined 37% and 39% for the third quarter and first nine months of fiscal 2018, respectively, driven for both periods by lower reported revenues,higher selling and administrative expense and, to a lesser extent, gross margin contraction. For the third quarter and first nine months of fiscal 2018, gross margin declined 150and 110 basis points, respectively, as higher full-price ASP was more than offset by higher product costs, the unfavorable impact of lower licensing revenues and lower marginin our direct to consumer business, with higher warehousing costs also impacting the year-to-date period. For both the third quarter and the first nine months of fiscal 2018,selling and administrative expense increased due to higher demand creation and operating overhead expense. Higher demand creation expense for both periods was due toincreased marketing and advertising support for initiatives to drive growth, while higher operating overhead expense was primarily a result of continued investment in our directto consumer business, with higher wage-related costs also contributing to the year-to-date increase.

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Corporate Three Months Ended February 28, Nine Months Ended February 28,

(Dollars in millions) 2018 2017 % Change 2018 2017 % Change

Revenues $ 6 $ 11 — $ 18 $ 79 —

(Loss) Before Interest and Taxes $ (299) $ (119) 151% $ (1,075) $ (478) 125%

Corporate  revenues  primarily  consist  of  foreign  currency  hedge  gains  and  losses  related  to  revenues  generated  by  entities  within  the  NIKE  Brand  geographic  operatingsegments and Converse, but managed through our central foreign exchange risk management program.

The  Corporate  loss  before  interest  and  taxes  consists  largely  of  unallocated  general  and  administrative  expenses,  including  expenses  associated  with  centrally  manageddepartments;  depreciation  and  amortization  related  to  our  corporate  headquarters;  unallocated  insurance,  benefit  and  compensation  programs,  including  stock-basedcompensation; 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  thedifference between actual foreign currency rates and standard rates used to record non-functional currency denominated product purchases within the NIKE Brand geographicoperating segments and Converse; related foreign currency hedge results; conversion gains and losses arising from re-measurement of monetary assets and liabilities in non-functional currencies; and certain other foreign currency derivative instruments.

Corporate’s loss before interest and taxes increased $180 million and $597 million for the third quarter and first nine months of fiscal 2018, respectively, primarily due to thefollowing:

• a detrimental change of $59 million and $210 million for the third quarter and first nine months of fiscal 2018, respectively, related to the difference between actualforeign currency exchange rates and standard foreign currency exchange rates assigned to the NIKE Brand geographic operating segments and Converse, net ofhedge gains and losses; these results are reported as a component of consolidated gross margin;

• a detrimental change in net foreign currency gains and losses of $90 million and $208 million for the third quarter and first nine months of fiscal 2018, respectively,related  to  the  re-measurement  of  monetary  assets  and  liabilities  denominated  in  non-functional  currencies  and  the  impact  of  certain  foreign  currency  derivativeinstruments , reported as a component of consolidated Other (income) expense, net ; and

• an unfavorable change of $31 million for the third quarter of fiscal 2018, largely due to higher operating overhead expense; for the first nine months of fiscal 2018, anunfavorable change of $179 million, primarily due to higher operating overhead expense driven by one-time wage-related costs associated with our organizationalrealignment in the first half of fiscal 2018.

Foreign Currency Exposures and Hedging Practices

OverviewAs 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 exchangerates.  Our  primary  foreign  currency  exposures  arise  from  the  recording  of  transactions  denominated  in  non-functional  currencies  and  the  translation  of  foreign  currencydenominated 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 centrally on a portfolio basis to address those risks that are material to NIKE, Inc. We manage theseexposures  by  taking  advantage  of  natural  offsets  and  currency  correlations  that  exist  within  the  portfolio  and,  where  practical  and  material,  by  hedging  a  portion  of  theremaining exposures using derivative instruments such as forward contracts and options. As described below, the implementation of the NIKE Trading Company (NTC) andour foreign currency adjustment program enhanced our ability to manage our foreign exchange risk by increasing the natural offsets and currency correlation benefits that existwithin our portfolio  of  foreign exchange exposures.  Our hedging policy is  designed to partially  or  entirely  offset  the impact  of  exchange rate changes on the underlying netexposures  being  hedged.  Where  exposures  are  hedged,  our  program  has  the  effect  of  delaying  the  impact  of  exchange  rate  movements  on  our  Unaudited  CondensedConsolidated  Financial  Statements;  the  length  of  the  delay  is  dependent  upon  hedge  horizons.  We  do  not  hold  or  issue  derivative  instruments  for  trading  or  speculativepurposes.

Refer to Note 4 — Fair Value Measurements and Note 9 — Risk Management and Derivatives in the accompanying Notes to the Unaudited Condensed Consolidated FinancialStatements  for  additional  description  of  how the above financial  instruments  are valued and recorded,  as well  as  the fair  value of  outstanding  derivatives  at  each reportedperiod end.

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Transactional ExposuresWe 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 — NIKE’s product costs are exposed to fluctuations in foreign currencies in the following ways:

1. Product purchases denominated in currencies other than the functional currency of the transacting entity:

a. Certain  NIKE  entities  purchase  product  from  the  NTC,  a  wholly-owned  sourcing  hub  that  buys  NIKE  branded  products  from  third-party  factories,predominantly in U.S. Dollars. The NTC, whose functional currency is the U.S. Dollar, then sells the products to NIKE entities in their respective functionalcurrencies. When the NTC sells to a NIKE entity with a different functional currency, the result is a foreign currency exposure for the NTC.

b. Other NIKE entities purchase product directly from third-party factories in U.S. Dollars. These purchases generate a foreign currency exposure for thoseNIKE entities with a functional currency other than the U.S. Dollar.

In both purchasing scenarios, a weaker U.S. Dollar reduces the inventory cost incurred by NIKE whereas a stronger U.S. Dollar increases its cost.

2. Factory input costs: NIKE operates a foreign currency adjustment program with certain factories. The program is designed to more effectively manage foreigncurrency risk  by assuming certain  of  the factories’  foreign currency exposures,  some of  which are natural  offsets  to  our  existing foreign currency exposures.Under this program, our payments to these factories are adjusted for rate fluctuations in the basket of currencies (“factory currency exposure index”) in which thelabor, materials and overhead costs incurred by the factories in the production of NIKE branded products (“factory input costs”) are denominated.

For the currency within the factory  currency exposure indices that  is  the local  or  functional  currency of  the factory,  the currency rate fluctuation affecting theproduct cost is recorded within Inventories and is recognized in Cost of sales when the related product is sold to a third-party. All currencies within the indices,excluding the U.S. Dollar and the local  or functional  currency of  the factory,  are recognized as embedded derivative contracts and are recorded at  fair  valuethrough Other (income) expense, net .  Refer  to  Note  9  —  Risk  Management  and  Derivatives  in  the  accompanying  Notes  to  the  Unaudited  CondensedConsolidated Financial Statements for additional detail.

As  an  offset  to  the  impacts  of  the  fluctuating  U.S.  Dollar  on  our  non-functional  currency  denominated  product  purchases  described  above,  a  strengtheningU.S. Dollar against the foreign currencies within the factory currency exposure indices decreases NIKE’s U.S. Dollar inventory cost. Conversely, a weakeningU.S. Dollar against the indexed foreign currencies increases our inventory cost.

• Non-Functional Currency Denominated External Sales — A portion of our NIKE Brand and Converse revenues associated with European operations are earned incurrencies  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  aforeign currency exposure.

• Other Costs — Non-functional currency denominated costs, such as endorsement contracts, also generate foreign currency risk, though to a lesser extent. In certaincases,  the  Company  has  also  entered  into  other  contractual  agreements  which  have  payments  that  are  indexed  to  foreign  currencies  and  create  embeddedderivative contracts that are recorded at fair value through  Other (income) expense, net . Refer to Note 9 — Risk Management and Derivatives in the accompanyingNotes to the Unaudited Condensed Consolidated Financial Statements for additional detail.

• Non-Functional  Currency  Denominated  Monetary  Assets  and  Liabilities  —  Our  global  subsidiaries  have  various  assets  and  liabilities,  primarily  receivables  andpayables, including intercompany receivables and payables, denominated in currencies other than their functional currencies. These balance sheet items are subjectto re-measurement which may create fluctuations in Other (income) expense, net within our consolidated results of operations.

Managing Transactional ExposuresTransactional exposures are managed on a portfolio basis within our foreign currency risk management program. We manage these exposures by taking advantage of naturaloffsets 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 ratefluctuations on probable forecasted future cash flows, including certain product cost exposures, non-functional currency denominated external sales and other costs describedabove. Generally, these are accounted for as cash flow hedges in accordance with U.S. GAAP, except for hedges of the embedded derivative components of the product costexposures 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  re-measurement  and  embedded  derivative  contracts  are  not  formally  designated  as  hedging  instruments  under  U.S.  GAAP.  Accordingly,  changes  in  fair  value  of  theseinstruments are recognized in Other (income) expense, net and are intended to offset the foreign currency impact of the re-measurement of the related non-functional currencydenominated asset or liability or the embedded derivative contract being hedged.

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Translational ExposuresMany 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 aswe 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 foreignsubsidiaries’  non-U.S.  Dollar  denominated  balance  sheets  into  U.S.  Dollars  for  consolidated  reporting  results  in  a  cumulative  translation  adjustment  to Accumulated othercomprehensive income within Shareholders’ equity .  In the translation of our Unaudited Condensed Consolidated Statements of Income, a weaker U.S. Dollar in relation toforeign  functional  currencies  benefits  our  consolidated  earnings  whereas  a  stronger  U.S.  Dollar  reduces  our  consolidated  earnings.  The  impact  of  foreign  exchange  ratefluctuations on the translation of our consolidated Revenues was a benefit of approximately $333 million and a detriment of approximately $132 million for the three monthsended  February  28,  2018  and  2017,  respectively.  The  impact  of  foreign  exchange  rate  fluctuations  on  the  translation  of  our  Income before income taxes was a  benefit  ofapproximately $72 million and a detriment of approximately $31 million for the three months ended February 28, 2018 and 2017, respectively. The impact of foreign exchangerate fluctuations on the translation of our consolidated Revenues was a benefit of approximately $394 million and a detriment of approximately $412 million for the nine monthsended  February  28,  2018  and  2017,  respectively.  The  impact  of  foreign  exchange  rate  fluctuations  on  the  translation  of  our  Income before income taxes was a  benefit  ofapproximately $78 million and a detriment of approximately $79 million for the nine months ended February 28, 2018 and 2017, respectively.

Managing Translational ExposuresTo minimize the impact of translating foreign currency denominated revenues and expenses into U.S. Dollars for consolidated reporting, certain foreign subsidiaries use excesscash  to  purchase  U.S.  Dollar  denominated  available-for-sale  investments.  The  variable  future  cash  flows  associated  with  the  purchase  and  subsequent  sale  of  theseU.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 ofthe 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 onnet 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-relatedgains and losses included in Other (income) expense, net had an unfavorable impact of approximately $18 million and $130 million on our Income before income taxes for thethree and nine months ended February 28, 2018 , respectively.

Net Investments in Foreign SubsidiariesWe  are  also  exposed  to  the  impact  of  foreign  exchange  fluctuations  on  our  investments  in  wholly-owned  foreign  subsidiaries  denominated  in  a  currency  other  than  theU.S. Dollar, which could adversely impact the U.S. Dollar value of these investments, and therefore the value of future repatriated earnings. We have, in the past, hedged andmay,  in  the  future,  hedge  net  investment  positions  in  certain  foreign  subsidiaries  to  mitigate  the  effects  of  foreign  exchange  fluctuations  on  these  net  investments.  Thesehedges are accounted for as net investment hedges in accordance with U.S. GAAP. There were no outstanding net investment hedges as of February 28, 2018 and 2017 .There were no cash flows from net investment hedge settlements for the three and nine months ended February 28, 2018 and 2017 .

Liquidity and Capital Resources

Cash Flow ActivityCash provided by operations was $2,685  million  for  the  first  nine  months  of  fiscal  2018  compared  to  $2,884  million  for  the  first  nine  months  of  fiscal  2017. Net income ,adjusted for non-cash items, generated $ 1,962 million of operating cash flows for the first nine months of fiscal 2018, a decrease compared to $ 3,633 million for the first ninemonths of fiscal 2017. The net change in working capital and other assets and liabilities resulted in an increase of $1,472 million during the period. Impacting the change inother liabilities was the accrual of $1,242 million during the first nine months of fiscal 2018 for the transition tax under the Tax Act, which will be paid in cash over an eight-yearperiod.  Refer  to Note  6  —  Income  Taxes  for  additional  detail  on  the  Tax  Act. Cash provided by operations was  also  impacted  by  the  net  change  in  cash  collateral  withderivative counterparties as a result of hedging transactions. During the first nine months of fiscal 2018, we were required to post cash collateral of $354 million, as comparedto receiving net cash collateral of $188 million during the first nine months of fiscal 2017. Refer to the Credit Risk section of Note 9 — Risk Management and Derivatives foradditional detail.

Cash provided (used) by investing activities was a $526 million source of cash for the first nine months of fiscal 2018 compared to a $488 million use of cash for the first ninemonths of fiscal 2017. The primary driver of the change was an increase in net sales/maturities of short-term investments (including sales, maturities and purchases) to $1,254million for the first nine months of fiscal 2018 from $309 million for the first nine months of fiscal 2017.

Cash used by financing activities was $3,448 million for the first nine months of fiscal 2018 compared to $1,483 million for the first nine months of fiscal 2017. The increase in Cash used by financing activities was primarily driven by the issuance of long-term debt in the first nine months of fiscal 2017, which did not recur in fiscal 2018, and, to alesser extent, the repayment of Notes payable and higher share repurchases during the first nine months of fiscal 2018 compared to the first nine months of fiscal 2017.

During the first nine months of fiscal 2018, we repurchased 46.6 million shares of NIKE’s Class B Common Stock for $2,713 million (an average price of $58.22 per share)under the four-year, $12 billion share repurchase program approved by the Board of Directors in November 2015. As of February 28, 2018 , we had repurchased 126.4 millionshares at a cost of approximately $7,151 million (an average price of $56.58 per share) under this program. We continue to expect funding of share repurchases will come fromoperating  cash  flows,  excess  cash  and/or  proceeds  from  debt.  The  timing  and  the  amount  of  shares  purchased  will  be  dictated  by  our  capital  needs  and  stock  marketconditions.

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Capital ResourcesOn July 21, 2016, we filed a shelf registration statement (the “Shelf”) with the SEC which permits us to issue an unlimited amount of debt securities from time to time. The Shelfexpires on July 21, 2019. For additional detail refer to Note 8 — Long Term Debt in our Annual Report on Form 10-K for the fiscal year ended May 31, 2017 .

On August 28, 2015, we entered into a committed credit facility agreement with a syndicate of banks, which provides for up to $2 billion of borrowings. The facility maturesAugust 28, 2020, with a one-year extension option prior to any anniversary of the closing date, provided that in no event shall it extend beyond August 28, 2022. As of and forthe nine months ended February 28, 2018 , we had no amounts outstanding under the committed credit facility.

We currently have long-term debt ratings of AA- and A1 from Standard and Poor’s Corporation and Moody’s Investor Services, respectively. If our long-term debt ratings wereto decline, the facility fee and interest  rate under our committed credit  facility would increase. Conversely,  if  our long-term debt ratings were to improve, the facility fee andinterest  rate would decrease. Changes in our long-term debt ratings would not trigger acceleration of  maturity of  any then-outstanding borrowings or any future borrowingsunder the committed credit facility. Under this facility, we have agreed to various covenants. These covenants include limits on our disposal of fixed assets and the amount ofdebt secured by liens we may incur, as well as limits on the indebtedness we can incur relative to our net worth. In the event we were to have any borrowings outstandingunder this facility and failed to meet any covenant, and were unable to obtain a waiver from a majority of the banks in the syndicate, any borrowings would become immediatelydue and payable. As of February 28, 2018 , we were in full compliance with each of these covenants and believe it is unlikely we will fail to meet any of these covenants in theforeseeable future.

Liquidity  is  also  provided  by  our  $2  billion  commercial  paper  program.  During  the  three  months  ended  February  28,  2018  ,  the  maximum  amount  of  commercial  paperborrowings  outstanding  at  any  point  was  $1.3  billion.  As  of  February  28,  2018  ,  there  were  no  outstanding  borrowings  under  this  program.  We  may  continue  to  issuecommercial paper or other debt securities during fiscal 2018 depending on general corporate needs. We currently have short-term debt ratings of A1+ and P1 from Standardand Poor’s Corporation and Moody’s Investor Services, respectively.

To date, in fiscal 2018, we have not experienced difficulty accessing the credit markets or incurred higher interest costs. Future volatility in the capital markets, however, mayincrease costs associated with issuing commercial paper or other debt instruments or affect our ability to access those markets.

As of February 28, 2018 , we had cash, cash equivalents and short-term investments totaling $4.8 billion , consisting primarily of deposits held at major banks, money marketfunds,  commercial  paper,  corporate  notes,  U.S.  Treasury  obligations,  U.S.  government  sponsored  enterprise  obligations  and  other  investment  grade  fixed-incomesecurities.  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.  Whileindividual securities have varying durations, as of February 28, 2018 , the average duration of our cash equivalents and short-term investments portfolio was 32 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 describedabove, will be sufficient to meet our domestic and foreign capital needs in the foreseeable future.

Contractual ObligationsThere 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,  2017,  except  for  thetransition tax related to the Tax Act. Expected future cash payments for the transition tax are as follows:

Description of Commitment Cash Payments Due During the Year Ending May 31,

(In millions) Remainder of

2018 2019 2020 2021 2022 Thereafter TotalTransition Tax Related to the Tax Act (1) $ — $ 108 $ 108 $ 108 $ 108 $ 918 $ 1,350

(1) Represents a provisional estimate of the future cash payments due as part of the transition tax on deemed repatriation of undistributed earnings of foreign subsidiaries,which is reflected net of foreign tax credits we expect to utilize. Actual amounts could vary as we complete our analysis of the Tax Act. Refer to Note 6 — Income Taxes inthe accompanying Notes to the Unaudited Condensed Consolidated Financial Statements for further information.

Off-Balance Sheet ArrangementsAs of February 28, 2018 , we did not have any off-balance sheet arrangements that have, or are reasonably likely to have, a material current or future effect on our financialcondition, results of operations, liquidity, capital expenditures or capital resources.

New Accounting PronouncementsRefer  to Note  1  —  Summary  of  Significant  Accounting  Policies  in  the  accompanying  Notes  to  the  Unaudited  Condensed  Consolidated  Financial  Statements  for  recentlyadopted and recently issued accounting standards.

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Critical Accounting PoliciesOur discussion and analysis of  our financial  condition and results  of  operations are based upon our Unaudited Condensed Consolidated Financial  Statements,  which havebeen prepared in accordance with U.S. GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts ofassets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities.

We believe that the estimates, assumptions and judgments involved in the accounting policies described in the “Management’s Discussion and Analysis of Financial Conditionand 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 beour 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 reasonablylikely events or circumstances that would result in materially different amounts being reported.

With the exception of Income Taxes, there have been no material changes to our critical accounting policies reported in our most recent Annual Report on Form 10-K. Prior tothe enactment of the Tax Act on December 22, 2017, we regularly determined certain foreign earnings to be indefinitely reinvested outside the United States. Following theenactment of the Tax Act, we no longer consider historical or future earnings to be indefinitely reinvested outside the United States. Refer to Note 6 — Income Taxes in theaccompanying Notes to the Unaudited Condensed Consolidated Financial Statements for additional information on the Tax Act.

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ITEM 3. Quantitative and Qualitative Disclosures about Market RiskThere 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 31,2017 .

ITEM 4. Controls and ProceduresWe maintain disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in our Securities Exchange Act of1934,  as  amended  (“the  Exchange  Act”)  reports  is  recorded,  processed,  summarized  and  reported  within  the  time  periods  specified  in  the  Securities  and  ExchangeCommission’s  rules  and forms and that  such information  is  accumulated  and communicated  to  our  management,  including  our  Chief  Executive  Officer  and Chief  FinancialOfficer,  as  appropriate,  to  allow  for  timely  decisions  regarding  required  disclosure.  In  designing  and  evaluating  the  disclosure  controls  and  procedures,  managementrecognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives,and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

We carry out a variety of ongoing procedures under the supervision and with the participation of our management, including our Chief Executive Officer and Chief FinancialOfficer,  to evaluate the effectiveness of  the design and operation of our disclosure controls and procedures. Based on the foregoing, our Chief Executive Officer and ChiefFinancial Officer concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of February 28, 2018 .

We  are  continuing  several  transformation  initiatives  to  centralize  and  simplify  our  business  processes  and  systems.  These  are  long-term  initiatives,  which  we  believe  willenhance our internal control over financial reporting due to increased automation and further integration of related processes. We will continue to monitor our internal controlover financial reporting for effectiveness throughout the transformation.

There have not been any other changes in our internal control over financial  reporting during our most recent fiscal quarter that have materially affected, or are reasonablylikely to materially affect, our internal control over financial reporting.

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Special Note Regarding Forward-LookingStatements and Analyst Reports

Certain  written  and  oral  statements,  other  than  purely  historic  information,  including  estimates,  projections,  statements  relating  to  NIKE’s  business  plans,  objectives  andexpected operating results and the assumptions upon which those statements are based, made or incorporated by reference from time to time by NIKE or its representatives inthis report, other reports, filings with the Securities and Exchange Commission, press releases, conferences or otherwise, are “forward-looking statements” within the meaningof the Private Securities Litigation Reform Act of 1995 and Section 21E of the Exchange Act. Forward-looking statements include, without limitation, any statement that maypredict, forecast, indicate, or imply future results, performance or achievements, and may contain the words “believe,” “anticipate,” “expect,” “estimate,” “project,” “will be,” “willcontinue,” “will likely result,” or words or phrases of similar meaning. Certain factors, including various risks and uncertainties, may cause actual results to differ materially fromthe forward-looking statements. The risks and uncertainties are detailed from time to time in reports filed by NIKE with the Securities and Exchange Commission, includingreports filed on Forms 8-K, 10-Q and 10-K, and include, among others, the following: international, national and local general economic and market conditions; the size andgrowth of the overall athletic footwear, apparel and equipment markets; intense competition among designers, marketers, distributors and sellers of athletic footwear, appareland equipment for consumers and endorsers;  demographic changes; changes in consumer preferences;  popularity of particular designs, categories of products and sports;seasonal and geographic demand for NIKE products; difficulties in anticipating or forecasting changes in consumer preferences, consumer demand for NIKE products and thevarious  market  factors  described  above;  difficulties  in  implementing,  operating  and  maintaining  NIKE’s  increasingly  complex  information  systems  and  controls,  including,without limitation, the systems related to demand and supply planning and inventory control; interruptions in data and information technology systems; consumer data security;fluctuations  and  difficulty  in  forecasting  operating  results,  due  to,  among  other  factors,  the  timing  of  at-once  orders  and  discounts,  order  cancellations  and  returns,  andincreasing online and mobile commercial activity; the ability of NIKE to sustain, manage or forecast its growth and inventories; the size, timing and mix of purchases of NIKE’sproducts;  increases in  the cost  of  materials,  labor  and energy used to manufacture  products,  new product  development  and introduction;  the ability  of  NIKE to secure andprotect trademarks, patents and other intellectual property; product performance and quality; customer service; adverse publicity; the loss of significant customers or suppliers;dependence on distributors and licensees; business disruptions; increased costs of freight and transportation to meet delivery deadlines; increases in borrowing costs due toany decline  in  NIKE’s  debt  ratings;  changes  in  business  strategy  or  development  plans;  general  risks  associated  with  doing  business  outside  the  United  States,  including,without limitation, exchange rate fluctuations, import duties, tariffs, quotas, political and economic instability and terrorism; changes in government regulations; the impact of,including  business  and  legal  developments  relating  to,  climate  change;  natural  disasters;  liability  and  other  claims  asserted  against  NIKE;  the  ability  to  attract  and  retainqualified personnel;  the effects of NIKE’s decision to invest in or divest of businesses; the impact of the implementation of the Tax Cuts and Jobs Act on our business andresults of operations; and other factors referenced or incorporated by reference in this report and other reports.

The risks included here are not exhaustive. Other sections of this report may include additional factors which could adversely affect NIKE’s business and financial performance.Moreover, NIKE operates in a very competitive and rapidly changing environment. New risks emerge from time to time and it is not possible for management to predict all suchrisks, nor can it assess the impact of all such risks on NIKE’s business or the extent to which any risk, or combination of risks, may cause actual results to differ materially fromthose  contained  in  any  forward-looking  statements.  Given  these  risks  and  uncertainties,  investors  should  not  place  undue  reliance  on  forward-looking  statements  as  aprediction of actual results.

Investors should also be aware that while NIKE does, from time to time, communicate with securities analysts, it is against NIKE’s policy to disclose to them any material non-public  information or  other  confidential  commercial  information.  Accordingly,  shareholders  should not  assume that  NIKE agrees with  any statement  or  report  issued by anyanalyst irrespective of the content of the statement or report. Furthermore, NIKE has a policy against issuing or confirming financial forecasts or projections issued by others.Thus, to the extent that reports issued by securities analysts contain any projections, forecasts or opinions, such reports are not the responsibility of NIKE and may not reflectNIKE’s current views.

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PART II - OTHER INFORMATIONITEM 1. Legal ProceedingsThere have been no material developments with respect to the information previously reported under Part I, Item 3 of our Annual Report on Form 10-K for the fiscal year endedMay 31, 2017 .

ITEM 1A. Risk FactorsThere have been no material changes in our risk factors from those disclosed in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended May 31, 2017 .

ITEM 2. Unregistered Sales of Equity Securities and Use of ProceedsIn November 2015, the Board of Directors approved a four-year, $12 billion share repurchase program. As of February 28, 2018 , the Company had repurchased 126.4 millionshares at an average price of $56.58 per share for a total approximate cost of $7.2 billion under this program. The Company intends to use excess cash, future cash fromoperations and/or proceeds from debt to fund repurchases.

The following table presents a summary of share repurchases made by NIKE under this program during the quarter ended February 28, 2018 :

Period Total Number of

Shares Purchased Average PricePaid per Share

Total Number of SharesPurchased as Part of Publicly

Announced Plans orPrograms

Maximum Number (or ApproximateDollar Value) of Shares that May Yet Be

Purchased Under the Plansor Programs (In millions)

December 1 — December 31, 2017 530,869 $ 59.97 530,869 $ 5,779

January 1 — January 31, 2018 6,451,969 $ 65.49 6,451,969 $ 5,357

February 1 — February 28, 2018 7,620,000 $ 66.60 7,620,000 $ 4,849

14,602,838 $ 65.87 14,602,838

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ITEM 6. Exhibits(a) EXHIBITS:

3.1

Restated Articles of Incorporation, as amended (incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended November 30, 2015).

3.2

Fifth Restated Bylaws, as amended (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K filedNovember 17, 2017).

4.1 Restated Articles of Incorporation, as amended (see Exhibit 3.1).4.2 Fifth Restated Bylaws, as amended (see Exhibit 3.2).4.3

Third Supplemental Indenture, dated as of October 21, 2016, by and between NIKE, Inc. and Deutsche Bank Trust Company Americas,as trustee, including the form of 2.375% Notes due 2026 and form of 3.375% Notes due 2046 (incorporated by reference to Exhibit 4.2 tothe Company’s Form 8-K filed October 21, 2016).

10.1

Form of Non-Statutory Stock Option Agreement for options granted to executives after May 31, 2010 under the Stock Incentive Plan(incorporated by reference to Exhibit 10.5 to the Company’s Annual Report on Form 10-K for the fiscal year ended May 31, 2017).*

10.2

Form of Restricted Stock Unit Agreement under the Stock Incentive Plan (incorporated by reference to Exhibit 10.16 to the Company’sAnnual Report on Form 10-K for the fiscal year ended May 31, 2017).*

31.1† Rule 13(a)-14(a) Certification of Chief Executive Officer.31.2† Rule 13(a)-14(a) Certification of Chief Financial Officer.32.1† Section 1350 Certificate of Chief Executive Officer.32.2† Section 1350 Certificate of Chief Financial Officer.101.INS XBRL Instance Document.101.SCH XBRL Taxonomy Extension Schema Document.101.CAL XBRL Taxonomy Extension Calculation Linkbase Document.101.DEF XBRL Taxonomy Extension Definition Linkbase Document.101.LAB XBRL Taxonomy Extension Label Linkbase Document.101.PRE XBRL Taxonomy Extension Presentation Linkbase Document.

† Furnished herewith* Management contract or compensatory plan or arrangement.

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SignaturesPursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto dulyauthorized.

 

NIKE, Inc.

an Oregon Corporation

/S/    ANDREW CAMPION

Andrew CampionChief Financial Officer and Authorized

Officer

DATED: April 5, 2018

 

 

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NIKE, INC.OPTION AGREEMENT

Pursuant to the Stock Incentive Plan (the “Plan”) of NIKE, Inc., an Oregon corporation (the “Company”), the Company grants to the individual listed below (the“Participant”) the right and the option (the “Option”) to purchase all or any part of the total shares of the Company’s Class B Common Stock (“Shares”) grantedper the terms and conditions of this agreement between the Company and the Participant (this “Agreement”). By accepting this Option grant, the Participant agreesto all of the terms and conditions of the Plan, the Agreement and any Appendices included with the Agreement. Capitalized terms not explicitly defined in thisAgreement but defined in the Plan shall have the same definitions as in the Plan.

1. Grant Terms.

Grant Terms Grant DetailsParticipant Type of Option Shares Grant Date Exercise Price Expiration Date

The Option will vest on the date(s) shown below with respect to the [number] [percentage] of Shares opposite such date(s):

Shares Vesting Dates

2. Termination of Employment or Service. Except as provided in this Section 2, the Option may not be exercised unless at the time of exercise the Participantis employed by or in the service of the Company and shall have been so employed or provided such service continuously since the Grant Date. For purposes of thisAgreement, the Participant is considered to be employed by or in the service of the Company if the Participant is employed by or in the service of the Company orany parent or subsidiary corporation of the Company (an “Employer”). If the Participant’s employment or service with the Company terminates without Cause forany reason other than the reasons specified in the subsections below, the Option may be exercised at any time before the Expiration Date or the expiration of three(3) months after the date of termination (the “Cancellation Date”), whichever is the shorter period, but only if and to the extent the Participant was entitled toexercise the Option on the date of termination. To the extent that following termination of employment or service, the Option is not exercised within the applicableperiods set forth in this Section 2, all further rights to purchase Shares pursuant to the Option shall terminate and be forfeited.

a) Death or Disability. If the Participant’s employment or service with the Company terminates because of death or total disability (within the meaning ofSection 22(e)(3) of the Code), the Option shall, following the receipt and processing by the Company of any necessary and appropriate documentation inconnection with the Participant’s termination (the “Processing Period”), become exercisable in full and may be exercised at any time before the first tooccur of (i) the Expiration Date and (ii) the date that is four (4) years after the date of termination.

b) Normal Retirement. If the Participant’s employment or service with the Company terminates because of the Participant’s “normal retirement”, asdefined in the Plan, before the first anniversary of the Grant Date, the Option shall immediately terminate and be forfeited. If the Participant’semployment or service with the Company terminates because of the Participant’s normal retirement on or after the first anniversary of the Grant Date, theOption shall, following the Processing Period, vest in full and may be exercised at any time before the first to occur of (i) the Expiration Date and (ii) thedate that is four (4) years after the date of termination. As set forth in the Plan, “normal retirement” applies when the Participant is at least sixty (60) yearsof age with five years of service with the Company.

c) Early Retirement . If the Participant’s employment or service with the Company terminates because of the Participant’s “early retirement”, as defined inthe Plan, before the first anniversary of the Grant Date, the Option shall immediately terminate and be forfeited. If the Participant’s employment orservice with the Company terminates because of the Participant’s early retirement on or after the first anniversary of the Grant Date, the Option shallcontinue to vest according to the schedule specified in this Agreement with no forfeiture of any portion of the Option resulting from such termination, andthe Option may be exercised at any time before the first to occur of (i) the Expiration Date and (ii) the date that is

four (4) years after the date of termination. As set forth in the Plan, “early retirement” applies when the Participant is at least fifty-five (55) years of agewith five years of service with the Company.

d) Absence on Leave. Absence on leave or on account of illness or disability under rules established by the committee of the Board of Directors of theCompany appointed to administer the Plan (the “Committee”) shall not be deemed an interruption of employment or service.

e) Change in Control. In the event of a Change in Control, treatment shall be pursuant to the terms provided in the Plan.

3. Rights as a Shareholder. The Participant shall have no rights as a shareholder with respect to any Shares underlying the Option until the date the Participantbecomes the holder of record of those Shares. No adjustment shall be made for dividends or other rights for which the record date occurs before the date theParticipant becomes the holder of record.

4. Clawback. The Company may require the Participant to deliver or otherwise repay to the Company the Option and any Shares or other amount or propertythat may be issued, delivered or paid in respect of the Option, as well as any consideration that may be received in respect of a sale or other disposition of any suchShares or property, as follows:

a) If, during the period of the Participant’s employment or service with the Company or an Employer (the “Employment Period”) or at any time thereafter,the Participant has committed or engaged in a breach of confidentiality, or an unauthorized disclosure or use of inside information, customer lists, tradesecrets or other confidential information of the Company or any of its subsidiaries or otherwise has breached any employee invention and secrecyagreement or similar agreement with the Company or any of its subsidiaries;

b) If, during the Employment Period or at any time thereafter, the Participant has committed or engaged in an act of theft, embezzlement or fraud, breachedany covenant not to compete or non-solicitation or non-disclosure agreement or similar agreement with the Company or any of its subsidiaries, ormaterially breached any other agreement to which the Participant is a party with the Company or any of its subsidiaries;

c) Pursuant to any applicable securities, tax or stock exchange laws, rules or regulations relating to the recoupment or clawback of incentive compensation,as in effect from time to time; or

d) Pursuant to the NIKE, Inc. Policy for Recoupment of Incentive Compensation as approved by the Committee and in effect on the Grant Date, or suchother policy for clawback or recoupment of incentive compensation as may subsequently be approved from time to time by the Committee.

e) If, during the Employment Period or the one (1) year period thereafter (the “Restriction Period”), the Participant, directly or indirectly, owns, manages,controls or participates in the ownership, management or control of, or becomes employed by, consults for or becomes connected in any manner with, anybusiness engaged anywhere in the world in the athletic footwear, athletic apparel or sports equipment, sports electronics/technology and sports accessoriesbusiness or any other business that directly competes with the then-current existing or reasonably anticipated business of the Company or any of itsparent, subsidiaries or affiliated corporations (a “Competitor”). The Company has the option, in its sole discretion, to elect to waive all or a portion of theRestriction Period or to limit the definition of Competitor.

5. Exercise of Option.

a) Method of Exercise. Subject to Section 5(b), the Option may be exercised from time to time, to the extent then vested, only by notice in writing from theParticipant to the Company, or a broker designated by the Company, of the Participant’s binding commitment to purchase Shares, specifying the numberof Shares the Participant desires to purchase under the Option and the date on which the Participant agrees to complete the transaction and, if required tocomply with the U.S. Securities Act of 1933, as amended, containing a representation that it is the Participant’s intention to acquire the Shares forinvestment and not with a view to distribution (the “Exercise Notice”). On or before the date specified for completion of the purchase, the Participantmust pay the Company the full exercise price of those Shares by any of the following methods at the election of the Participant: (a) cash payment by wiretransfer; (b) delivery of an Exercise Notice, together with irrevocable instructions to a broker to deliver promptly to the Company the amount of saleproceeds required to pay the full exercise price; (c) if allowed by the Committee, withholding by the Company of Shares otherwise issuable uponexercise; or (d) a combination of (a), (b) and/or (c). Unless the Committee determines otherwise, no Shares shall be issued upon exercise of the Optionuntil full payment for the Shares has been made, including all taxes (as set forth in Section 7 below) that the Company and/or Employer have to withhold.

b) Deemed Exercise. Notwithstanding Section 5(a), the Participant acknowledges that, except as otherwise provided in Appendix B or determined by theCommittee, any portion of the Option that has vested and is exercisable immediately prior to the Expiration Date or Cancellation Date shall be deemed tohave been exercised by the Participant at such time, provided (i) the Participant has accepted the Option and this Agreement, (ii) the fair market value ofone Share exceeds the exercise price per Share, and (iii) the Option remains outstanding on the last day of its full term. For the avoidance of doubt, theOption that terminates upon the Cancellation Date, shall be deemed to have remained outstanding on the

last day of its full term for purposes of clause (iii) in the preceding sentence. In the event the Option is exercised pursuant to this Section 5(b), theCompany shall deliver to the Participant the number of Shares for which the Option was deemed exercised, less the number of Shares required to bewithheld for the payment of the total exercise price and any withholding (as set forth in Section 7).

6. Nontransferability. The Option is nonassignable and nontransferable by the Participant, either voluntarily or by operation of law, except by will or by thelaws of descent and distribution of the state or country of the Participant’s domicile at the time of death, and during the Participant’s lifetime, the Option isexercisable only by the Participant.

7. Responsibility for Taxes. The Participant shall, immediately upon notification of the amount due, if any, pay to the Company by wire transfer, orirrevocably instruct a broker to pay from stock sales proceeds, amounts necessary to satisfy any applicable federal, state and local tax withholding requirements. Ifadditional withholding is or becomes required (as a result of exercise of the Option or as a result of the disposition of Shares acquired pursuant to exercise of theOption) beyond any amount deposited before delivery of the Shares, the Participant shall pay such amount to the Company, by wire transfer, on demand. If theParticipant fails to pay the amount demanded, the Company or the Employer may withhold that amount from other amounts payable to the Participant, includingsalary, subject to applicable law.

8. Changes in Capital Structure. If the outstanding Shares are hereafter increased or decreased or changed into or exchanged for a different number or kind ofshares or other securities of the Company by reason of any recapitalization, reclassification, stock split, combination of shares or dividend payable in shares,appropriate adjustment shall be made by the Committee in the number and kind of shares subject to the Option, and the exercise price for shares subject to theOption, so that the Participant’s proportionate interest before and after the occurrence of the event is maintained. Notwithstanding the foregoing, the Committeeshall have no obligation to effect any adjustment that would or might result in the issuance of fractional shares, and any fractional shares resulting from anyadjustment may be disregarded or provided for in any manner determined by the Committee. Any such adjustments made by the Committee shall be conclusive.

9. Electronic Delivery. The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan byelectronic means. The Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line orelectronic system established and maintained by the Company or a third party designated by the Company.

10. Additional Company Provisions.

a) Conditions on Obligations. The Company shall not be obligated to issue Shares upon exercise of the Option if the Company is advised by its legalcounsel that such issuance would violate applicable U.S. or non-U.S. state or federal laws or regulations, including securities laws or exchange controlregulations.

b) Imposition of Other Requirements. The Company reserves the right to impose other requirements upon the Participant’s participation in the Plan, on theOption and on any Shares acquired under the Plan, to the extent the Company determines it is necessary or advisable for legal or administrative reasons,and to require the Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

c) Amendments. The Company may at any time amend this Agreement, provided that no amendment that adversely impacts the rights of the Participantunder this Agreement may be made without the Participant’s written consent.

d) Committee Determinations. The Participant agrees to accept as binding, conclusive and final all decisions and interpretations of the Committee or otheradministrator of the Plan as to the provisions of the Plan or this Agreement or any questions arising thereunder or hereunder.

e) Severability. The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable,in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.

f) Governing Law; Attorneys’ Fees. The Option grant and the provisions of this Agreement are governed by, and subject to, the laws of the State ofOregon. For purposes of litigating any dispute that arises under this grant or the Agreement, the parties hereby submit to and consent to the exclusivejurisdiction of, and agree that such litigation shall exclusively be conducted in, the courts of Washington County, Oregon or the United States DistrictCourt for the District of Oregon, where this grant is made and/or to be performed. In the event either party institutes litigation hereunder, the prevailingparty shall be entitled to reasonable attorneys’ fees to be set by the trial court and, upon any appeal, the appellate court.

11. Additional Participant Provisions

a) No Right to Employment or Service. Nothing in the Plan or this Agreement shall (i) confer upon the Participant any right to be continued in theemployment of an Employer or interfere in any way with the Employer’s right to terminate the Participant’s employment at will at any time, for anyreason, with or without Cause, or to decrease the Participant’s

compensation or benefits, or (ii) confer upon the Participant any right to be retained or employed by the Employer or to the continuation, extension,renewal or modification of any compensation, contract or arrangement with or by the Employer. The determination of whether to grant any option underthe Plan is made by the Company in its sole discretion. The grant of the Option shall not confer upon the Participant any right to receive any additionaloption or other award under the Plan or otherwise.

b) No Advice Regarding Grant. The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendationsregarding the Participant’s participation in the Plan, or the Participant’s acquisition or sale of the underlying Shares. The Participant is hereby advised toconsult with the Participant’s own personal tax, legal and financial advisors regarding the Participant’s participation in the Plan before taking any actionrelated to the Plan.

c) Transfer of Rights and Benefits; Successors. This Agreement shall be binding upon, and shall inure to the benefit of and be enforceable by, theCompany’s successors and assigns. Subject to the restrictions on transfer of this Agreement, this Agreement shall be binding upon the Participant’s heirs,executors, administrators, successors and assigns.

12. Appendices A and B. Notwithstanding any provisions in this Agreement, if the Participant is a resident of any country other than the United States, theOption grant shall be subject to the special terms and conditions set forth in the Appendix A to this Agreement and any country-specific terms and conditions forthe Participant’s country set forth in Appendix B to this Agreement. Moreover, if the Participant relocates outside of the United States to one of the countriesincluded in Appendix B, or from one such country to another such country, the special terms and conditions for all non-U.S. participants and for such country willapply to the Participant, to the extent the Company determines that the application of such terms and conditions is necessary or advisable for legal or administrativereasons. Appendices A and B constitute part of this Agreement.

13. Complete Agreement. This Agreement, including the Appendices A and B, and the Plan constitute the entire agreement between the Participant and theCompany, both oral and written, concerning the matters addressed herein, except with regard to the imposition of other requirements as described under Section10(b) above, and all prior agreements or representations concerning the matters addressed herein, whether written or oral, express or implied, are terminated and ofno further effect.

APPENDIX A

TO THE

OPTION AGREEMENT

SPECIAL TERMS AND CONDITIONS FOR NON-U.S. participants

This Appendix A includes additional terms and conditions that govern Options for Participants residing outside of the United States. Capitalized terms notexplicitly defined in this Appendix A but defined in the Agreement shall have the same definitions as in the Agreement.

1. Nature of Grant . In accepting the Option, the Participant understands, acknowledges and agrees that:1.1 the Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated

by the Company at any time, to the extent permitted by the Plan;1.2 the grant of the Option is exceptional, voluntary and occasional and does not create any contractual or other right to receive future grants of

Options, or benefits in lieu of Options, even if Options have been granted in the past;1.3 all decisions with respect to future Options or other grants, if any, will be at the sole discretion of the Company;1.4 the Option and the Participant’s participation in the Plan shall not create a right to employment or be interpreted as forming an employment

or services contract with the Company;1.5 the Participant is voluntarily participating in the Plan;1.6 the Option and the Shares underlying the Option, and the income from and value of same, are not intended to replace any pension rights or

compensation;1.7 the Option and the Shares underlying the Option, and the income from and value of same, are not part of normal or expected compensation

for any purpose, including for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, holidaypay, long-service awards, pension or retirement or welfare benefits or similar payments;

1.8 unless otherwise agreed with the Company, the Option and Shares underlying the Option, and the income from and value of same, are notgranted for, or in connection with, any service the Participant may provide as a director of any parent or subsidiary corporation of the Company;

1.9 the future value of the underlying Shares is unknown, indeterminable and cannot be predicted with certainty;1.10 if the underlying Shares do not increase in value, the Option will have no value;1.11 if the Participant exercises the Option, the value of Shares acquired upon exercise may increase or decrease in value, even below the

exercise price;1.12 no claim or entitlement to compensation or damages shall arise from forfeiture of the Options resulting from the termination of the

Participant’s employment or other service relationship (for any reason whatsoever whether or not later found to be invalid or in breach of employment laws in thejurisdiction where the Participant is employed or the terms of the Participant’s employment agreement, if any), and in consideration of the Option grant, theParticipant agrees not to institute any claim against the Company, any parent or subsidiary corporation, including the Employer;

1.13 unless otherwise provided in the Plan or by the Company in its discretion, the Shares and benefits evidenced by this Agreement do notcreate any entitlement to have the Shares or any such benefits transferred to, or assumed by, another company nor to be exchanged, cashed out or substituted for, inconnection with any corporation transaction affecting the Shares; and

1.14 neither the Company, the Employer nor any parent or other subsidiary corporation of the Company shall be liable for any foreign exchangerate fluctuation between the Participant’s local currency and the United States Dollar that may affect the value of the Option or of any amounts due to theParticipant pursuant to the exercise of the Option or the subsequent sale of any Shares acquired upon exercise.

2. Data Privacy. The Participant hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or otherform, of the Participant’s personal data as described in this Agreement and any other Option grant materials by and among, as applicable, the Employer, theCompany and any parent or subsidiary corporation for the exclusive purpose of implementing, administering and managing the Participant’s participation inthe Plan .

The Participant understands that the Company and the Employer may hold certain personal information about the Participant, including, but notlimited to, the Participant’s name, home address and telephone number, email address, date of birth, social insurance number, passport or other identificationnumber, salary, nationality, job title, any Shares or directorships held in the Company, details of all Options or any other entitlement to Shares awarded,canceled, exercised, vested, unvested or outstanding in the Participant’s favor (“Data”), for the exclusive purpose of implementing, administering andmanaging the Plan.

The Participant understands that Data will be transferred to E*TRADE Corporate Financial Services, Inc. and any of its affiliated companies(“E*TRADE”), or such other stock plan service provider as may be selected by the Company in the future, which is assisting the Company with theimplementation, administration and management of the Plan. The Participant understands that the recipients of the Data may be located in the United Statesor elsewhere, and that the recipients’ country ( e.g. , the United States) may have different data privacy laws and protections than the Participant’s country.The Participant understands that he or she may request a list with the names and addresses of any potential recipients of the Data by contacting his or herlocal human resources representative. The Participant authorizes the Company, E*TRADE and any other possible recipients which may assist the Company(presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic orother form, for the sole purpose of implementing, administering and managing his or her participation in the Plan. The Participant understands that Data willbe held only as long as is necessary to implement, administer and manage the Participant’s participation in the Plan. The Participant understands he or shemay, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse orwithdraw the consents herein, in any case without cost, by contacting in writing his or her local human resources representative. Further, the Participantunderstands that he or she is providing the consents herein on a purely voluntary basis. If the Participant does not consent, or if the Participant later seeks torevoke his or her consent, his or her employment status or service with the Employer will not be affected; the only consequence of refusing or withdrawing theParticipant’s consent is that the Company would not be able to grant Options or other equity awards to the Participant or administer or maintain such awards.Therefore, the Participant understands that refusing or withdrawing his or her consent may affect the Participant’s ability to participate in the Plan. For moreinformation on the consequences of the Participant’s refusal to consent or withdrawal of consent, the Participant understands that he or she may contact hisor her local human resources representative.

Upon request of the Company or the Employer, the Participant agrees to provide a separate executed data privacy consent form (or any otheragreements or consents that may be required by the Company and/or the Employer) that the Company and/or the Employer may deem necessary to obtain fromthe Participant for the purpose of administering his or her participation in the Plan in compliance with the data privacy laws in the Participant’s country,either now or in the future. The Participant understands and agrees that he or she will not be able to participate in the Plan if the Participant fails to provideany such consent or agreement requested by the Company and/or the Employer.

3. Language. The Participant acknowledges that he or she is sufficiently proficient in English to understand the terms and conditions of thisAgreement. Furthermore, if the Participant has received this Agreement or any other document related to the Plan translated into a language other than English andif the meaning of the translated version is different than the English version, the English version will control.

4. Exception to Retirement Provisions. If the Company receives an opinion of counsel that there has been a legal judgment and/or legaldevelopment in the Participant's country that would likely result in the favorable retirement treatment under Sections 2(b) and 2(c) of the Agreement being deemedunlawful and/or discriminatory, then the Company will not apply Sections 2(b) and 2(c) of the Agreement at the time of the Participant’s termination ofemployment or service.

5. Insider Trading Restrictions/Market Abuse Laws. The Participant acknowledges that, depending on his or her country, or broker’s country,or the country in which the Shares are listed, the Participant may be subject to insider trading restrictions and/or market abuse laws in applicable jurisdictions,which may affect his or her ability to accept, acquire, sell, or attempt to sell, or otherwise dispose of Shares or rights to Shares ( e.g.,Options), or rights linked tothe value of Shares, during such times as the he or she is considered to have “inside information” regarding the Company (as defined by the laws or regulations inthe applicable jurisdictions, including the United States and the Participant’s country). Local insider trading laws and regulations may prohibit the cancellation oramendment of orders the Participant placed before possessing inside information. Furthermore, the Participant may be prohibited from (i) disclosing the insideinformation to any third party, including fellow employees (other than on a “need to know” basis) and (ii) “tipping” third parties or causing them to otherwise buyor sell securities. Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under the applicableCompany Insider Trading Policy. The Participant acknowledges that it is his or her responsibility to comply with any applicable restrictions, and the Participant isadvised to speak to his or her personal advisor on this matter.

6. Foreign Asset/Account Reporting Requirements. The Participant acknowledges that there may be certain foreign asset and/or accountreporting requirements which may affect his or her ability to acquire or hold Shares acquired under the Plan or cash received from participating in the Plan(including from any dividends paid on Shares acquired under the Plan) in a brokerage or bank account outside the Participant’s country. The Participant may berequired to report such accounts, assets or transactions to the tax or other authorities in his or her country. The Participant also may be required to repatriate saleproceeds or other funds received as a result of the Participant’s participation in the Plan to his or her country through a designated bank or broker within a certaintime after receipt. The Participant acknowledges that it is his or her responsibility to be compliant with such regulations, and the Participant is advised to consulthis or her personal legal advisor for any details.

APPENDIX B

TO THE

OPTION AGREEMENT

COUNTRY-SPECIFIC TERMS FOR NON-U.S. PARTICIPANTS

This Appendix B includes additional terms and conditions that govern Options for Participants residing and/or working outside of the United States in the countriesbelow. Capitalized terms not explicitly defined in this Appendix B but defined in the Agreement shall have the same definitions as in the Agreement.

This Appendix B also includes information regarding certain issues of which the Participant should be aware with respect to participation in the Plan. Theinformation is based on the securities, exchange control and other laws in effect in the respective countries as of February 2018. Such laws are often complex andchange frequently. As a result, the Company strongly recommends that the Participant not rely on the information in this Appendix B as the only source ofinformation relating to the consequences of participation in the Plan because the information may be out of date at the time that the Participant exercises the Optionor sells Shares acquired upon exercise of the Option.

In addition, the information contained herein is general in nature and may not apply to the Participant’s particular situation, and the Company is not in a position toassure the Participant of a particular result. Accordingly, the Participant is advised to seek appropriate professional advice as to how the relevant laws in theParticipant’s country may apply to a particular situation.

Further, if the Participant is a citizen or resident of a country other than the one in which the Participant is currently working and/or residing, transfers employmentand/or residency after the Option is granted or is considered resident of another country for local law purposes, the information contained herein may not beapplicable to the Participant in the same manner, and the Company shall determine, in its sole discretion, to what extent the additional terms and conditionsincluded herein shall apply to the Participant.

Finally, the Company may, at any time and at its own discretion, restrict the available methods of exercising the Option/paying the exercise price or direct therepatriation of the proceeds of the sale of Shares acquired upon exercise of the Option if it deems it advisable for legal or administrative reasons.

ARGENTINA

Notifications

Securities Law Information . Shares of the Company are not publicly offered or listed on any stock exchange in Argentina. The offer is private and not subject tothe supervision of any Argentine governmental authority.

Exchange Control Information . Exchange control regulations in Argentina are subject to frequent change. The Participant is solely responsible for complyingwith any applicable exchange control rules and should consult with his or her personal legal advisor regarding any exchange control obligations that the Participantmay have prior to exercising the Option or receiving proceeds from the sale of Shares acquired upon exercise of the Option or from the payment of any dividends.

Foreign Asset/Account Reporting Information . If the Participant holds Shares (acquired upon exercise of the Option or otherwise) as of December 31, theParticipant is required to report certain information regarding the Shares on his or her annual tax return.

AUSTRALIA

Terms and Conditions

Data Privacy . This provision supplements Section 2 of Appendix A:

The Company can be contacted at One Bowerman Drive, Beaverton OR, 97005, U.S.A. The Australian Employer can be contacted at NIKE Australia Pty. Ltd., 28Victoria Crescent, PO Box 443, Abbotsford VIC 3067, Australia or Hurley Australia Pty. Ltd., 24 Cross Street, Brookvale NSW 2100, Australia, as applicable.

The Participant’s Data will be held in accordance with the Company’s privacy policy, a copy of which can be obtained by contacting the Company or theAustralian Employer at the address listed above. The Company’s privacy policy contains, among other things, details of how the Participant can access and seekcorrection of Data held in connection with this Agreement.

The Participant understands and agrees that Data may be transferred to recipients located outside of Australia, including the United States and any other countrywhere the Company has operations.

Breach of Law . Notwithstanding anything else in the Plan or the Agreement, the Participant will not be entitled to, and shall not claim any benefit (includingwithout limitation a legal right) under the Plan if the provision of such benefit would give rise to a breach of Part 2D.2 of the Corporations Act 2001 (Cth), anyother provision of that Act, or any other applicable statute, rule or regulation which limits or restricts the giving of such benefits. Further, the Employer is under noobligation to seek or obtain the approval of its shareholders in a general meeting for the purpose of overcoming any such limitation or restriction.

Notifications

Exchange Control Information . Exchange control reporting is required for cash transactions exceeding AUD10,000 and for international fund transfers. If anAustralian bank is assisting with the transaction, the bank will file the report on behalf of the Participant.

Securities Law Information. If the Participant acquires Shares upon exercise of the Option and subsequently offers the Shares for sale to a person or entityresident in Australia, such an offer may be subject to disclosure requirements under Australian law, and the Participant should obtain legal advice regarding anyapplicable disclosure requirements prior to making any such offer.

Tax Information . The Plan is a plan to which Subdivision 83A-C of the Income Tax Assessment Act 1997 (Cth) applies (subject to the conditions in that Act).

AUSTRIA

Notifications

Exchange Control Information . If the Participant holds Shares obtained through the Plan outside of Austria, the Participant must submit a report to the AustrianNational Bank. An exemption applies if the value of the shares as of any given quarter does not meet or exceed €30,000,000 or as of December 31 does not meet orexceed €5,000,000. If the former threshold is exceeded,

quarterly obligations are imposed, whereas if the latter threshold is exceeded, annual reports must be given. If quarterly reporting is required, the reports must befiled by the fifteenth day of the month following the last day of the respective quarter. The annual reporting date is as of December 31 and the deadline for filingthe annual report is January 31 of the following year.

When shares are sold or cash dividends received, there may be exchange control obligations if the cash received is held outside Austria. If the transaction volumeof all the Participant’s accounts abroad meets or exceeds €10,000,000, the movements and balances of all accounts must be reported monthly, as of the last day ofthe month, on or before the fifteenth day of the following month.

BELGIUM

Notifications

Taxation of Option. The Option must be accepted in writing either (i) within 60 days of the offer (for tax at offer), or (ii) after 60 days of the offer (for tax atexercise). The Participant should consult his or her personal tax advisor regarding the tax consequences of accepting the offer.

Foreign Asset/Account Reporting Information. Belgium residents are required to report any securities held (including Shares) or bank or brokerage accountsopened and maintained outside Belgium on their annual tax returns. In a separate report, Belgium residents are also required to provide the National Bank ofBelgium with the account details of any such foreign accounts (including the account number, bank name and country in which any such account was opened).This report, as well as additional information on how to complete it, can be found on the website of the National Bank of Belgium, www.nbb.be, underKredietcentrales / Centrales des crédits caption. The Participant should consult his or her personal advisor to ensure compliance with applicable reportingobligations.

Stock Exchange Tax. From January 1, 2017, a stock exchange tax applies to transactions executed by a Belgian resident through a non-Belgian financialintermediary, such as E*TRADE. The stock exchange tax likely will apply when Shares are sold. The Participant should consult with his or her personal taxadvisor for additional details on his or her obligations with respect to the stock exchange tax.

BRAZIL

Terms and Conditions

Compliance with Law. By accepting the Option, the Participant acknowledges his or her agreement to comply with applicable Brazilian laws and to pay any andall applicable taxes associated with the exercise of the Option, the receipt of any dividends, and the sale of shares issued upon exercise of the Option.

Labor Law Acknowledgment . By accepting and/or exercising the Option, the Participant agrees that (i) the Participant is making an investment decision, (ii) theParticipant may exercise the Option only if the vesting conditions are met and (iii) the value of the underlying shares is not fixed and may increase or decrease invalue without compensation.

Notifications

Exchange Control Information . Brazilian residents are required to submit an annual declaration of assets and rights held outside of Brazil to the Central Bank ofBrazil if the aggregate value of such assets and rights is equal to or greater than US$100,000. Quarterly reporting is required if such amount exceedsUS$100,000,000. Assets and rights that must be reported include shares issued upon exercise of the Option.

Tax on Financial Transaction (IOF) . Payments to foreign countries (including the payment of the exercise price price) and repatriation of funds into Brazil andthe conversion between BRL and USD associated with such fund transfers may be subject to the Tax on Financial Transactions. It is the Participant’s responsibilityto comply with any applicable Tax on Financial Transactions arising from his or her participation in the Plan. The Participant should consult with his or herpersonal tax advisor for additional details.

CANADA

Terms and Conditions

Termination of Employment . This provision replaces the third sentence of the first paragraph of Section 2 of the Agreement:

For purposes of the Option, except as provided in this Section 2, in the event of termination of the Participant’s employment or service, the Participant’s right tovest in the Option, if any, will terminate as of the date of termination and the Option and the Participant’s right to exercise the Option after termination ofemployment or service, if any, will be measured by the date of termination; provided however that the committee of the Board of Directors of the Companyappointed to administer the Plan (the “Committee”) may determine, in its sole discretion, that if the Participant’s termination is due to any reason other than thetotal disability, death or normal or early retirement (whether or not late found to be invalid or in breach of employment laws where the Participant is providingservices or the terms of the Participant’s employment or service agreement, if any) vesting will cease on and the Participant’s right to exercise the Option will bemeasured by the date that is the earlier of: (1) the date the Participant’s employment or service relationship is terminated, (2) the date the Participant receives noticeof termination of employment or service, or (3) the date the Participant is no longer actively employed by or in service regardless of any notice period or period ofpay in lieu of such notice required under local law (including, but not limited to, statutory law, regulatory law and/or common law).

Method of Exercise. Notwithstanding anything to the contrary in the Plan or this Agreement, the Participant will not be permitted to pay the exercise price or anyTax-Related Items by delivery to the Company, or attestation to the Company of ownership, of other Shares, or by using a “net exercise” arrangement.

No Deemed Exercise . Section 5(b) of the Agreement shall not apply to the Participant, unless otherwise determined by the Committee. Instead, any portion of theOption that remains outstanding as of the expiration date shall expire and be forfeited as of such date.

ThefollowingprovisionswillapplyiftheParticipantisaresidentofQuebec:

French Language Provision . The parties acknowledge that it is their express wish that the Agreement, as well as all documents, notices and legal proceedingsentered into, given or instituted pursuant hereto or relating directly or indirectly hereto, be drawn up in English.

Les parties reconnaissent avoir exigé la rédaction en anglais de la convention, ainsi que de tous documents exécutés, avis donnés et procédures judiciariesintentées,directementouindirectement,relativementàousuiteàlaprésenteconvention.

Data Privacy. This provision supplements Section 2 of Appendix A:

The Participant hereby authorizes the Company and the Company’s representatives to discuss with and obtain all relevant information from all personnel,professional or not, involved in the administration and operation of the Plan. The Participant further authorizes the Company, any subsidiary or affiliate and theCommittee to disclose and discuss the Option with their advisors. The Participant further authorizes the Company and any subsidiary or affiliate to record suchinformation and to keep such information in the Participant’s employee file.

Notifications

Securities Law Information . The Participant will not be permitted to sell or otherwise dispose of the Shares acquired upon exercise of the Option within Canada.The Participant will be permitted to sell or dispose of such shares only if such sale or disposal takes place outside of Canada through the facilities of the stockexchange on which the Shares are traded ( i.e., the New York Stock Exchange).

Foreign Asset/Account Reporting Information . If the total value of the Participant’s foreign property exceeds C$100,000 at any time during the year, theParticipant must report all of his or her foreign property on Form T1135 (Foreign Income Verification Statement) by April 30 of the following year. Foreignproperty includes Shares acquired under the Plan and may include the Option. The Option must be reported--generally at a nil cost--if the $100,000 cost thresholdis exceeded because of other foreign property the Participant holds. If Shares are acquired, their cost generally is the adjusted cost base (“ACB”) of the shares. TheACB would normally equal the fair market value of the Shares at exercise, but if the Participant owns other shares, this ACB may have to be averaged with theACB of the other shares. The Participant should speak with a personal tax advisor to determine the scope of foreign property that must be considered for purposesof this requirement.

CHILE

Notifications

Securities Law Information . The offer of the Option constitutes a private offering in Chile effective as of the Grant Date. The offer of the Option is made subjectto general ruling n° 336 of the Chilean Superintendence of Securities and Insurance (“SVS”). The offer refers to securities not registered at the securities registry orat the foreign securities registry of the SVS, and, therefore, such securities are not subject to oversight of the SVS. Given that the Option is not registered in Chile,the Company is not required to provide information about the Option or Shares in Chile. Unless the Option and/or the Shares are registered with the SVS, a publicoffering of such securities cannot be made in Chile.

EstaofertadelasOpciónesseconsideraunaofertaprivadainChileefectivaapartirdelaFechadelaConcesión.EstaofertadelasOpciónessehacesujetaalareglageneralno.336delaSuperintendenciadeValoresySeguroschilena(“SVS”).LaofertaserefiereavaloresnoinscritosenelregistrodevaloresoenelregistrodevaloresextranjerosdelaSVSy,porlotanto,talesvaloresnoestánsujetosalafiscalizacióndeésta.DadoquelasOpciónesnoestánregistradasenChile,noserequierequelaCompañíaproveainformaciónsobrelasOptionsoaccionesenChile.AmenosquelasOpciónesy/oaccionesesténregistradasconlaSVS,unaofertapúblicadetalesvaloresnopuedehacerseenChile.

Exchange Control Information. It is the Participant’s responsibility to make sure that the Participant complies with exchange control requirements in Chile whenthe value of his or her Option transaction is in excess of US$10,000, regardless of whether the Participant exercises his or her Option through a cash exercise orcashless method of exercise.

If the Participant uses the cash exercise method to exercise his or her Option and the Participant remits funds in excess of US$10,000 out of Chile, the remittancemust be made through the Formal Exchange Market ( i.e., a commercial bank or registered foreign exchange office). In such case, the Participant must provide tothe bank or registered foreign exchange office certain information regarding the remittance of funds ( e.g., destination, currency, amount, parties involved, etc.).

If the Participant exercises his or her Option using a cashless exercise method and the aggregate value of the purchase price exceeds US$10,000, the Participantmust sign Annex 1 of the Manual of Chapter XII of the Foreign Exchange Regulations and file it directly with the Central Bank within 10 days of the exercise date.

The Participant is not required to repatriate funds obtained from the sale of shares or the receipt of any dividends. However, if the Participant decides to repatriatesuch funds, the Participant must do so through the Formal Exchange Market if the amount of the funds exceeds US$10,000. In such case, the Participant mustreport the payment to a commercial bank or registered foreign exchange office receiving the funds.

If the Participant’s aggregate investments held outside of Chile meets or exceeds US$5,000,000 (including the investments made under the Plan), the Participantmust report the status of such investments quarterly to the Central Bank. Annex 3.1 of Chapter XII of the Foreign Exchange Regulations must be used to file thisreport.

Please note that exchange control regulations in Chile are subject to change. The Participant should consult with his or her personal legal advisor regarding anyexchange control obligations that the Participant may have prior to exercising the Option or receiving proceeds from the sale of shares acquired upon exercise ofthe Option.

Annual Tax Reporting Obligation. The Chilean Internal Revenue Service (“CIRS”) requires Chilean residents to report the details of their foreign investments onan annual basis. Foreign investments include Shares acquired under the Plan. Further, if the Participant wishes to receive a credit against his or her Chilean incometaxes for any taxes paid abroad, the Participant must also report the payment of taxes abroad to the CIRS. These reports must be submitted electronically throughthe CIRS website at www.sii.cl in accordance with applicable deadlines. In addition, shares acquired upon exercise of the Option must be registered with theCIRS’s Foreign Investment Registry.

CHINA

Terms and Conditions

The following provisions apply to People's Republic of China ("PRC") nationals and any other individuals who are subject to exchange control requirementsin China, as determined by the Company in its sole discretion:

Restriction on Exercisability. Notwithstanding any provision of the Agreement or the Plan, the Participant will not be permitted to exercise his or her Option untiland unless the necessary approvals for the Plan have been obtained from the State Administration of Foreign Exchange (“SAFE”) and remain in place, asdetermined by the Company in its sole discretion.

Method of Exercise. Notwithstanding anything to the contrary in the Agreement or the Plan, due to exchange control laws in China, the Participant will berequired to exercise his or her Option using the cashless sell-all exercise method pursuant to which all shares subject to the exercised Option will be soldimmediately upon exercise and the proceeds of sale, less the exercise price, any Tax-Related Items and broker’s fees or commissions, will be remitted to theParticipant in accordance with any applicable exchange control laws and regulations. The Company reserves the right to provide additional methods of exercisedepending on the development of local law.

No Deemed Exercise . Section 5(b) of the Agreement shall not apply to the Participant, unless otherwise determined by the Committee. Instead, any portion of theOption that remains outstanding as of the Expiration Date shall expire and be forfeited as of such date.

Exchange Control Requirements. The Participant understands and agrees that, pursuant to local exchange control requirements, the Participant will be requiredto immediately repatriate the cash proceeds from the cashless exercise of the Option to China. The Participant further understands that, under local law, suchrepatriation of his or her cash proceeds may need to be effectuated through a special exchange control account established by the Company, the Employer or anyother subsidiary corporation or affiliate of the Company, and the Participant hereby consents and agrees that any proceeds from the sale of shares may betransferred to such special account prior to being delivered to the Participant.

The proceeds may be paid to the Participant in U.S. dollars or local currency at the Company’s discretion. In the event the proceeds are paid to the Participant inU.S. dollars, the Participant understands that the Participant will be required to set up a U.S. dollar bank account in China (if he or she has not already done so) andprovide the bank account details to the Employer and/or the Company so that the proceeds may be deposited into this account. If the proceeds are paid to theParticipant in local currency, the Company is under no obligation to secure any particular exchange conversion rate and/or conversion date and the Company mayface delays in converting the proceeds to local currency due to exchange control restrictions. The Participant agrees to bear any currency fluctuation risk betweenthe time the shares are sold or dividends are received and the time the proceeds are distributed through any such special exchange account. The Participant furtheragrees to comply with any other requirements that may be imposed by the Company in the future in order to facilitate compliance with exchange controlrequirements in China.

Post-Termination Exercise Period. This provision modifies Section 2 of the Agreement:

Notwithstanding the post-termination exercise periods set forth in the Agreement, to comply with local exchange control requirements, Participant will be requiredto exercise the Option within the lesser of (1) the period set forth in the Agreement, and (2) three (3) months after termination of employment or service, regardlessof the reason for termination. The Company reserves the right to allow for a longer exercise period depending on the development of local law.

Additional Restrictions . The Option will not vest nor become exercisable, and the Shares will not be issued at exercise, unless the Company determines that suchvesting, exercise and the issuance of Shares comply with all relevant provisions of law. Further, the Company is under no obligation to allow the exercise of theOption and/or issue Shares if the Company’s SAFE approval becomes invalid or ceases to be in effect by the time the Participant exercises the Option.

Notifications

Exchange Control Information. Chinese residents may be required to report to SAFE all details of their foreign financial assets and liabilities, as well as detailsof any economic transactions conducted with non-Chinese residents.

CZECH REPUBLIC

Notifications

Exchange Control Information. The Czech National Bank may require the Participant to fulfill certain notification duties in relation to the Option and theopening and maintenance of a foreign account. However, because exchange control regulations change frequently and without notice, the Participant shouldconsult with his or her personal legal advisor prior to the exercise of the Option and the sale of Shares to ensure compliance with current regulations. It is theParticipant’s responsibility to comply with any applicable Czech exchange control laws.

FRANCE

Terms and Conditions

Language Consent. By accepting the Option, the Participant confirms having read and understood the documents relating to this grant (the Plan, the French Plan(defined below), this Agreement and the Appendices) which were provided in English language. The Participant accepts the terms of those documents accordingly.

Enacceptantl’attribution, leParticipantconfirmeainsiavoirreçuluetcomprislesdocumentsrelatifs àcetteattribution(lePlan,lePlanFrançais(défini ci-dessous),leContratetlesAnnexes)quiontétécommuniquésenlangueanglaise.LeParticipantacceptelestermesdecesdocumentsenconnaissancedecause.

The following terms and conditions apply to French-qualified options granted on or after September 28, 2012. The terms and conditions applicable to French-qualified options granted before this date differ and the Participant is advised to consult with his or her personal tax advisor in this regard.

French-Qualified Option Under the French Plan. The Option is granted under the Sub-Plan for Option Grants to French Optionees (the “French Plan”) and isintended to qualify for favorable tax and social security treatment under Section L. 225‑177 to L. 225‑186‑1 of the French Commercial Code, as amended and inaccordance with the relevant provisions set forth by the French tax and social security laws and the French tax and social security administrations. Thus, the termsof the French Plan and the following additional terms shall apply.

The Company does not undertake to maintain the qualified status of the Option. Further, the Participant understands and agrees that the Participant will beresponsible for paying personal income tax and his or her portion of social security contributions resulting from the exercise of the Option in the event the Optionloses its qualified status and that the Participant will not be entitled to any damages if the Option no longer qualifies as French-qualified Option.

Plan Terms. The Option is subject to the terms and conditions of the Plan and the French Plan. To the extent that any term is defined in both the Plan and theFrench Plan, for purposes of this grant of the Option, the definitions in the French Plan shall prevail.

Death. This provision modifies Section 2(a) of the Agreement:

If the Participant dies while actively employed by the Company or a subsidiary or affiliate of the Company, pursuant to Section 7 of the French Plan, the Optionshall become immediately vested and exercisable in full and may be exercised within six (6) months of the Participant’s death by the executor or administrator ofParticipant’s estate or any person to whom the Option is transferred by will or the laws of descent and distribution. Any portion of the Option that is not exercisedwithin six (6) months following the date of the Participant’s death shall terminate and be forfeited.

Shares Acquired at Exercise of the Option . The Company may require that the shares acquired upon exercise remain with an appointed broker until their sale.

No Deemed Exercise . Section 5(b) of the Agreement shall not apply to the Participant, unless otherwise determined by the Committee. Instead, any portion of theOption that remains outstanding as of the Expiration Date shall expire and be forfeited as of such date.

Notifications

Foreign Asset/Account Reporting Information. French residents are required to report all foreign accounts (whether open, current or closed) to the French taxauthorities when filing their annual tax returns. The Participant should consult his or her personal advisor to ensure compliance with applicable reportingobligations.

GERMANY

Notifications

Exchange Control Information. If the Participant remits funds in excess of €12,500 out of or into Germany, such cross-border payment must be reported monthlyto the German Federal Bank ( Bundesbank). The Participant is responsible for the reporting obligation and should file the report (" AllgemeineMeldeportalStatistik ") electronically by the fifth day of the month following the month in which the payment is made. A copy of the report can be accessed via theBundesbank’s website at www.bundesbank.de and is available in both German and English.

GREECE

Notifications

Exchange Control Information. If the Participant exercises his or her Option through a cash exercise, withdraws funds from a bank in Greece and remits thosefunds out of Greece, certain exchange control restrictions may apply. However, because exchange control regulations may change without notice, the Participantshould consult with his or her legal advisor to ensure compliance with current regulations. It is the Participant’s responsibility to comply with Greek exchangecontrol laws.

HONG KONG

Terms and Conditions

Sale Restriction. Shares received at exercise are accepted as a personal investment. Notwithstanding anything contrary in the Agreement or the Plan, in the eventthe Option vests and the Participant or his or her heirs and representatives exercise the Option such that shares are issued to the Participant or his or her heirs andrepresentatives within six months of the Grant Date, the Participant agrees that the Participant or his or her heirs and representatives will not offer to the public orotherwise dispose of any shares acquired prior to the six-month anniversary of the Grant Date.

Notifications

Securities Law Information: Warning:The contents of this document have not been reviewed by any regulatory authority in Hong Kong. The Participant isadvised to exercise caution in relation to the offer. If the Participant is in any doubt about any of the contents of this document, he or she should obtainindependentprofessionaladvice.TheOptionandsharesacquireduponexerciseoftheOptiondonotconstituteapublicofferingofsecuritiesunderHongKonglawandareavailableonlytoemployeesoftheCompany,itssubsidiariesoraffiliates. ThePlan,theAgreement, andotherincidentalcommunicationmaterialshavenotbeenpreparedinaccordancewithandarenotintendedtoconstitutea“prospectus”forapublicofferingofsecuritiesundertheapplicablesecuritieslegislationinHongKong.TheOptionisintendedonlyforthepersonaluseofeacheligibleemployeeoftheEmployer,theCompanyoranysubsidiarycorporationoraffiliateoftheCompanyandmaynotbedistributedtoanyotherperson.

Nature of Scheme . The Company specifically intends that the Plan will not be an occupational retirement scheme for purposes of the Occupational RetirementSchemes Ordinance.

INDIA

Terms and Conditions

Method of Exercise. Notwithstanding anything to the contrary in the Plan or the Agreement, due to legal restrictions in India, the Participant will not be permittedto pay the exercise price by a “sell-to-cover” exercise ( i.e.,where Shares subject to the Option will be sold immediately upon exercise and the proceeds of the salewill be remitted to the Company to cover the exercise price for the purchased shares and any Tax-Related Items or Fringe Benefit Tax withholding). The Companyreserves the right to permit this method of payment depending on the development of local law.

Notifications

Exchange Control Information. Indian residents are required to repatriate to India all proceeds received from the sale of Shares within 90 days of receipt and anydividends paid on such shares within 180 days of receipt, or within such other period of time as may be required under applicable regulations. The Participant mustmaintain the foreign inward remittance certificate received from the bank where the foreign currency is deposited in the event that the Reserve Bank of India or theCompany requests proof of repatriation. It is the Participant’s responsibility to comply with applicable exchange control laws in India.

Foreign Asset/Account Reporting Information . The Participant is required to declare any foreign bank accounts and any foreign financial assets (includingShares held outside India) in the Participant’s annual tax return. The Participant is responsible for complying with this reporting obligation and is advised to conferwith his or her personal tax advisor in this regard.

INDONESIA

Terms and Conditions

Method of Exercise. The following provision supplements Section 5 of the Agreement:

Due to regulatory requirements, the Participant understands that the Participant will be restricted to the cashless sell-all method of exercise. To complete a cashlesssell-all exercise, the Participant understands that the Participant needs to instruct his or her broker to: (i) sell all of the shares issued upon exercise; (ii) use theproceeds to pay the exercise price, brokerage fees and any applicable Tax-Related Items; and (iii) remit the balance in cash to the Participant. The Participant willnot be permitted to hold shares after exercise. Depending on the development of local laws or the Participant’s country of residence, the Company reserves theright to modify the methods of exercising the Option and, in its sole discretion, to permit cash exercise, cashless sell-to cover exercise or any other method ofexercise and payment of Tax‑Related Items permitted under the Agreement.

Notifications

Exchange Control Information. Indonesian residents must provide the Indonesian central bank, Bank Indonesia, with information on foreign exchange activitiesin an online monthly report no later than the fifteenth day of the following month.

If the Participant remits funds into or out of Indonesia, the Indonesian bank through which the transaction is made will submit a report on the transaction to theBank of Indonesia for statistical reporting purposes. Although the bank through which the transaction is made is required to make the report, the Participant mustcomplete a “Transfer Report Form.”

IRELAND

Notifications

Director Notification Obligation. If the Participant is a director, shadow director or secretary of the Company’s Irish subsidiary or affiliate, and his or her interestin the Company represents more than 1% of the Company’s voting share capital, the Participant must notify the Irish subsidiary or affiliate in writing of his or herinterest in the Company ( e.g., shares acquired under the Plan, etc.), if the Participant becomes aware of the event giving rise to the notification requirement, or ifthe Participant becomes a director or secretary, if such an interest exists at the time. This notification requirement also applies with respect to the interests of aspouse or children under the age of 18 (whose interests will be attributed to the director, shadow director or secretary).

ISRAEL

Terms and Conditions

Method of Exercise. The following provision supplements Section 5 of the Agreement:

The Participant understands that the Participant will be restricted to the cashless sell-all method of exercise. To complete a cashless sell-all exercise, the Participantunderstands that the Participant needs to instruct his or her broker to: (i) sell all of the shares issued upon exercise; (ii) use the proceeds to pay the exercise price,brokerage fees and any applicable Tax-Related Items; and (iii) remit the balance in cash to the Participant. The Participant will not be permitted to hold shares afterexercise. Depending on the development of local laws or the Participant’s country of residence, the Company reserves the right to modify the methods ofexercising the Option and, in its sole discretion, to permit cash exercise, cashless sell-to cover exercise or any other method of exercise and payment ofTax‑Related Items permitted under the Agreement.

Notifications

Securities Law Information. This offer of the Option does not constitute a public offering under the Securities Law, 1968.

ITALY

Terms and Conditions

Method of Exercise. The following provision supplements Section 5 of the Agreement:

Due to regulatory requirements, the Participant understands that the Participant will be restricted to the cashless sell-all method of exercise. To complete a cashlesssell-all exercise, the Participant understands that the Participant needs to instruct his or her broker to: (i) sell all of the shares issued upon exercise; (ii) use theproceeds to pay the exercise price, brokerage fees and any applicable Tax-Related Items; and (iii) remit the balance in cash to the Participant. The Participant willnot be permitted to hold shares after exercise. Depending on the development of local laws or the Participant’s country of residence, the Company reserves

the right to modify the methods of exercising the Option and, in its sole discretion, to permit cash exercise, cashless sell-to cover exercise or any other method ofexercise and payment of Tax‑Related Items permitted under the Agreement.

No Deemed Exercise . Section 5(b) of the Agreement shall not apply to the Participant, unless otherwise determined by the Committee. Instead, any portion of theOption that remains outstanding as of the Expiration Date shall expire and be forfeited as of such date.

Data Privacy Notice. This provision replaces Section 2 of Appendix A:

The Participant understands that the Company and the Employer, as a data processor of the Company, may hold certain personal information about theParticipant, including, but not limited to, the Participant’s name, home address, email address and telephone number, date of birth, social insurance, passportor other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company or any subsidiary or affiliate, details of alloptions or any other entitlement to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in the Participant’s favor, and that theCompany and the Employer will process said data and other data lawfully received from third parties (collectively, “Personal Data”) for the exclusive purposeof managing and administering the Plan and complying with applicable laws, regulations and legislation.

The Participant also understands that providing the Company with Personal Data is mandatory for compliance with laws and is necessary for the performanceof the Plan and that the Participant’s denial to provide Personal Data would make it impossible for the Company to perform its contractual obligations andmay affect the Participant’s ability to participate in the Plan.

The Participant understands that Personal Data will not be publicized, but it may be accessible by the Employer as a data processor of the Company and withinthe Employer’s organization by its internal and external personnel in charge of processing. Furthermore, Personal Data will be transferred to E*TRADECorporate Financial Services, Inc. and any other affiliated companies (“E*TRADE”) assisting the Company with the management and administration of thePlan. The Participant understands that Personal Data may also be transferred to the independent registered public accounting firm engaged by the Company,and also to the legitimate addressees under applicable laws. The Participant further understands that the Company and its subsidiaries or affiliates willtransfer Personal Data amongst themselves and to E*TRADE as necessary for the purpose of implementation, administration and management of theParticipant’s participation in the Plan. Such recipients may receive, possess, use, retain and transfer Personal Data in electronic or other form, for thepurposes of implementing, administering and managing the Participant’s participation in the Plan. The Participant understands that these recipients may beacting as controllers, processors or persons in charge of processing, as the case may be, according to applicable privacy laws, and that they may be located inor outside the European Economic Area, such as in the United States or elsewhere, including countries that do not provide an adequate level of data protectionas intended under Italian privacy law.

Should the Company exercise its discretion in suspending all necessary legal obligations connected with the management and administration of the Plan, itwill delete Personal Data as soon as it has accomplished all the necessary legal obligations connected with the management and administration of the Plan.

The Participant understands that Personal Data processing related to the purposes specified above shall take place under automated or non-automatedconditions, anonymously when possible, that comply with the purposes for which Personal Data is collected and with confidentiality and security provisions asset forth by applicable laws and regulations, with specific reference to Legislative Decree no. 196/2003.

The processing activity, including communication, the transfer of Personal Data abroad, including outside of the European Economic Area, as specifiedherein and pursuant to applicable laws and regulations, does not require the Participant’s consent thereto as the processing is necessary to performance of lawand contractual obligations related to implementation, administration and management of the Plan. The Participant understands that, pursuant to Section 7 ofthe Legislative Decree no. 196/2003, he or she has the right at any moment to, including, but not limited to, obtain confirmation that Personal Data exists ornot, access, verify its content, origin and accuracy, delete, update, integrate, correct, block or stop, for legitimate reason, the Personal Data processing. Toexercise privacy rights the Participant should address the Data Controller as defined in the employee privacy policy. Furthermore, the Participant is aware thatPersonal Data will not be used for direct marketing purposes. In addition, Personal Data provided can be reviewed and questions or complaints can beaddressed by contacting the Participant’s human resources department.

Plan Document Acknowledgment. By accepting the Option, the Participant acknowledges that he or she has received a copy of the Plan and this Agreement andhas reviewed the Plan and this Agreement in their entirety and fully accepts all provisions thereof. The Participant further acknowledges that he or she has read andspecifically and expressly approves (a) the following provisions

of the Agreement: Section 2: Termination of Employment or Service; Section 3: Rights as a Shareholder; Section 4: Clawback; Section 5(a): Method of Exercise ofOption; Section 7: Responsibility for Taxes; Section 10: Additional Company Provisions; and (b) the following provisions of Appendix: (i) Section 1: Nature ofGrant; (ii) Section 3: Language; and (iii) all provisions for Italy in this Appendix.

Notifications

Foreign Asset/Account Reporting Information. If the Participant holds investments abroad or foreign financial assets ( e.g., cash and shares acquired under thePlan) that may generate income taxable in Italy, the Participant is required to report them on his or her annual tax returns (UNICO Form, RW Schedule) or on aspecial form if no tax return is due, irrespective of their value. The same reporting duties apply to the Participant if the Participant is the beneficial owner of theinvestments, even if the Participant does not directly hold investments abroad or foreign assets.

Foreign Asset Tax Information . The value of the financial assets held outside of Italy by Italian residents is subject to a foreign asset tax. Such tax is currentlylevied at an annual rate of 2 per thousand (0.2%). The taxable amount will be the fair market value of the financial assets ( e.g., shares acquired under the Plan)assessed at the end of the calendar year. No tax payment duties arise if the value of the foreign assets held abroad does not exceed €6,000.

JAPAN

Notifications

Exchange Control Information . If the Participant acquires Shares valued at more than ¥100 million in a single transaction, the Participant must file a SecuritiesAcquisition Report with the Ministry of Finance (the “MOF”) through the Bank of Japan within 20 days of the acquisition.

In addition, if the Participant pays more than ¥30 million in a single transaction for the purchase of shares when the Participant exercises the Option, the Participantmust file a Payment Report with the MOF through the Bank of Japan within 20 days of the date that the payment is made. The precise reporting requirements varydepending on whether or not the relevant payment is made through a bank in Japan. Please note that a Payment Report is required independently from a SecuritiesAcquisition Report. Therefore, the Participant must file both a Payment Report and a Securities Acquisition Report if the total amount that the Participant pays in asingle transaction for exercising the Option and purchasing the shares exceeds ¥100 million.

Foreign Asset/Account Reporting Information . The Participant will be required to report details of any assets held outside of Japan as of December 31(including the shares acquired under the Plan), to the extent such assets have a total net fair market value exceeding ¥50 million. Such report will be due by March15 each year. The Participant should consult with his or her personal tax advisor as to whether the reporting obligation applies to the Participant and whether theParticipant will be required to report details of his or her outstanding Option, as well as the shares, in the report.

KOREA

Notifications

Exchange Control Information . If the Participant remits funds out of Korea to pay the exercise price, the remittance of funds must be confirmed by a foreignexchange bank in Korea. The Participant should submit the following supporting documents evidencing the nature of the remittance to the bank together with theconfirmation application: (i) the Agreement; (ii) the Plan; and (iii) his or her certificate of employment. This confirmation is an automatic procedure ( i.e. , thebank does not need to approval the remittance and the process should not take more than a single day). This confirmation is not necessary if the Participant paysthe exercise price through any form of payment whereby some or all of the Shares purchased upon exercise of the Option are sold to pay the exercise price,because in this case there is no remittance of funds out of Korea.

Korean residents who realize US$500,000 or more from the sale of Shares or the receipt of any dividends in a single transaction before July 18, 2017 are requiredto repatriate the proceeds to Korea within three years of receipt.

Foreign Asset/Account Reporting Information . The Participant must declare all foreign financial accounts ( i.e. , non-Korean bank accounts, brokerageaccounts, etc.) to the Korean tax authorities and file a report with respect to such accounts if the value of such accounts exceeds KRW 1 billion (or an equivalentamount in foreign currency) on any month-end during a calendar year. The Participant should consult with his or her personal tax advisor to determine anypersonal reporting obligations.

MALAYSIA

Terms and Conditions

Data Privacy . This provision replaces Section 2 of Appendix A:

The Participant hereby explicitly, voluntarily and unambiguously consentsto the collection, use and transfer, in electronic or other form, of his or herpersonal data as described in the Agreement and any other Planparticipation materials by and among, as applicable, the Employer, theCompany and any affiliates or any third parties authorized by same inassisting in the implementation, administration and management of theParticipant’s participation in the Plan.

The Participant may have previously provided the Company and theEmployer with, and the Company and the Employer may hold, certainpersonal information about the Participant, including, but not limited to,his or her name, home address and telephone number, email address, dateof birth, social insurance, passport or other identification number, salary,nationality, job title, any shares of stock or directorships held in theCompany, the fact and conditions of the Participant’s participation in thePlan, details of all options or any other entitlement to shares of stockawarded, cancelled, exercised, vested, unvested or outstanding in theParticipant’s favor (“Data”), for the exclusive purpose of implementing,administering and managing the Plan.

Peserta dengan ini secara eksplicit, secara sukarela dan tanpa sebarang keraguanmengizinkan pengumpulan, penggunaan dan pemindahan, dalam bentuk elektronikatau lain-lain, data peribadinya seperti yang dinyatakan dalam Perjanjian ini danapa-apa bahan penyertaan Pelan oleh dan di antara, sebagaimana yang berkenaan,Majikan, Syarikat dan mana-mana Syarikat Sekutu atau mana-mana pihak ketigayang diberi kuasa oleh yang sama untuk membantu dalam pelaksanaan, pentadbirandan pengurusan penyertaan Peserta dalam Pelan tersebut.

Sebelum ini, Peserta mungkin telah membekalkan Syarikat dan Majikan dengan,dan Syarikat dan Majikan mungkin memegang, maklumat peribadi tertentu tentangPeserta, termasuk, tetapi tidak terhad kepada, namanya , alamat rumah dan nombortelefon, alamat emel, tarikh lahir, insurans sosial, nombor pasport atau pengenalanlain, gaji, kewarganegaraan, jawatan, apa-apa syer dalam saham atau jawatanpengarah yang dipegang dalam Syarikat, fakta dan syarat-syarat penyertaan Pesertadalam Pelan, butir-butir semua opsyenatau apa-apa hak lain untuk syer dalamsaham yang dianugerahkan, dibatalkan, dilaksanakan, terletak hak, tidak diletak hakataupun bagi faedah Peserta yang belum diselesaikan (“Data”), untuk tujuan yangeksklusif bagi melaksanakan, mentadbir dan menguruskan Pelan tersebut.

The Participant also authorizes any transfer of Data, as may be required, toE*TRADE Corporate Financial Services, Inc. or such other stock planservice provider as may be selected by the Company from time to time,which is assisting the Company with the implementation, administrationand management of the Plan and/or with whom any shares acquired uponexercise of the Option are deposited. The Participant acknowledges thatthese recipients may be located in the Participant’s country or elsewhere,and that the recipient’s country ( e.g. , the United States) may havedifferent data privacy laws and protections to the Participant’s country,which may not give the same level of protection to Data. The Participantunderstands that he or she may request a list with the names and addressesof any potential recipients of Data by contacting his or her local humanresources representative. The Participant authorizes the Company, thestock plan service provider and any other possible recipients which mayassist the Company (presently or in the future) with implementing,administering and managing the Participant’s participation in the Plan toreceive, possess, use, retain and transfer Data, in electronic or other form,for the sole purpose of implementing, administering and managing theParticipant’s participation in the Plan. The Participant understands thatData will be held only as long as is necessary to implement, administerand manage his or her participation in the Plan. The Participantunderstands that he or she may, at any time, view Data, request additionalinformation about the storage and processing of Data, require anynecessary amendments to Data or refuse or withdraw the consents herein,in any case, without cost, by contacting in writing his or her local humanresources representative, whose contact details are Mari McBurney, 30Pasir Panjang Rd #10-31/32, 117440, Singapore; +65 6216 7812;mari.mcburney@nike.com. Further, the Participant understands that he orshe is providing the consents herein on a purely voluntary basis. If theParticipant does not consent, or if the Participant later seeks to revoke theconsent, his or her employment status or service and career with theEmployer will not be affected; the only consequence of refusing orwithdrawing the consent is that the Company would not be able to grantfuture stock options or other equity awards to the Participant or administeror maintain such awards. Therefore, the Participant understands thatrefusing or withdrawing his or her consent may affect his or her ability toparticipate in the Plan. For more information on the consequences of therefusal to consent or withdrawal of consent, the Participant understandsthat he or she may contact his or her local human resources representative.

Peserta juga memberi kuasa untuk membuat apa-apa pemindahan Data,sebagaimana yang diperlukan, kepada E*TRADE Corporate Financial Services,Inc. atau pembekal perkhidmatan pelan saham yang lain sebagaimana yang dipiliholeh Syarikat dari semasa ke semasa, yang membantu Syarikat dalam pelaksanaan,yang membantu Syarikat dalam pelaksanaan, pentadbiran dan pengurusan Pelandan/atau dengan sesiapa yang mendepositkan syer-syer yang diperolehi melaluipelaksanaan Opsyen. Peserta mengakui bahawa penerima-penerima ini mungkinberada di negara Peserta atau di tempat lain, dan bahawa negara penerima(contohnya, Amerika Syarikat) mungkin mempunyai undang-undang privasi datadan perlindungan yang berbeza daripada negara Peserta, yang mungkin tidak bolehmemberi tahap perlindungan yang sama kepada Data. Peserta faham bahawa diaboleh meminta senarai nama dan alamat mana-mana individu atau parti yangmungkin akan menjadi penerima Data dengan menghubungi wakil sumber manusiatempatannya. Peserta memberi kuasa kepada Syarikat, pembekal perkhidmatanpelan saham dan mana-mana penerima lain yang mungkin membantu Syarikat(masa sekarang atau pada masa depan) untuk melaksanakan, mentadbir danmenguruskan penyertaan Peserta dalam Pelan untuk menerima, memiliki,menggunakan, mengekalkan dan memindahkan Data, dalam bentuk elektronik ataulain-lain, semata-mata dengan tujuan untuk melaksanakan, mentadbir danmenguruskan penyertaan Peserta dalam Pelan tersebut. Peserta faham bahawa Dataakan dipegang hanya untuk tempoh yang diperlukan untuk melaksanakan,mentadbir dan menguruskan penyertaannya dalam Pelan tersebut. Peserta fahambahawa dia boleh, pada bila-bila masa, melihat Data, meminta maklumat tambahanmengenai penyimpanan dan pemprosesan Data, meminta bahawa pindaan-pindaandilaksanakan ke atas Data atau menolak atau menarik balik persetujuan dalam ini,dalam mana-mana kes, tanpa kos, dengan menghubungi secara bertulis wakilsumber manusia tempatannya, di mana butir-butir hubungannya adalah MariMcBurney, 30 Pasir Panjang Rd #10-31/32, 117440, Singapore; +65 6216 7812;mari.mcburney@nike.com. Selanjutnya, Peserta memahami bahawa diamemberikan persetujuan di sini secara sukarela. Jika Peserta tidak bersetuju, ataujika Peserta kemudian membatalkan persetujuannya, status pekerjaan atauperkhidmatan dan kerjayanya dengan Majikan tidak akan terjejas; satu-satunyaakibat jika dia tidak bersetuju atau menarik balik persetujuannya adalah bahawaSyarikat tidak akan dapat memberikan opsyen saham pada masa depan atauanugerah ekuiti lain kepada Peserta atau mentadbir atau mengekalkan anugerahtersebut. Oleh itu, Peserta faham bahawa keengganan atau penarikan balikpersetujuannya boleh menjejaskan keupayaannya untuk mengambil bahagian dalamPelan tersebut. Untuk maklumat lanjut mengenai akibat keengganannya untukmemberikan keizinan atau penarikan balik keizinan, Peserta fahami bahawa diaboleh menghubungi wakil sumber manusia tempatannya .

Director Notification Obligation. If the Participant is a director of the Company’s Malaysian subsidiary, he or she is subject to certain notification requirementsunder the Malaysian Companies Act. Among these requirements is an obligation to notify the Malaysian subsidiary in writing when the Participant receives ordisposes of an interest ( e.g., an Option, shares) in the Company or any related company. Such notifications must be made within 14 days of receiving or disposingof any interest in the Company or any related company.

MEXICO

Terms and Conditions

No Entitlement or Claims for Compensation. This provision supplements Section 1 of Appendix A:

By accepting the Option, the Participant understands and agrees that any modification of the Plan or the Agreement or its termination shall not constitute a changeor impairment of the terms and conditions of employment.

Policy Statement. The invitation the Company is making under the Plan is unilateral and discretionary and, therefore, the Company reserves the absolute right toamend it and discontinue it at any time without any liability.

The Company, with registered offices at One Bowerman Drive, Beaverton OR, 97005, U.S.A., is solely responsible for the administration of the Plan andparticipation in the Plan and, in the Participant’s case, the acquisition of Shares does not, in any way, establish an employment relationship between the Participantand the Company since the Participant is participating in the Plan on a wholly commercial basis, nor does it establish any rights between the Participant and theEmployer.

Plan Document Acknowledgment. By accepting the Option, the Participant acknowledges that he or she has received copies of the Plan, has reviewed the Planand the Agreement in their entirety and fully understands and accepts all provisions of the Plan and the Agreement.

In addition, by accepting the Option, the Participant further acknowledges that he or she has read and specifically and expressly approves the terms and conditionsin Section 1 of Appendix A, in which the following is clearly described and established: (i) participation in the Plan does not constitute an acquired right; (ii) thePlan and participation in the Plan is offered by the Company on a wholly discretionary basis; (iii) participation in the Plan is voluntary; and (iv) the Company andits parent, subsidiaries and affiliates are not responsible for any decrease in the value of the shares underlying the Option.

Finally, the Participant hereby declares that he or she does do not reserve any action or right to bring any claim against the Company for any compensation ordamages as a result of participation in the Plan and therefore grants a full and broad release to the Employer and the Company and its parent, subsidiaries andaffiliates with respect to any claim that may arise under the Plan.

Spanish Translation

Renuncia de Derecho o Demandas para Compensación. EstasdisposicionescomplementanelApartado1delApéndiceA:

Al aceptar la Opción, el Participante manifiesta que entiende y está de acuerdo de que cualquier modificación del Plan or del Acuerdo o su terminación noconstituyeuncambioodesmejoradelostérminosylascondicionesdelempleo.

Declaración de Política. Lainvitación por parte de la Compañíabajo el Planes unilateral y discrecional y, por lo tanto, la Compañíase reservael derechoabsolutodemodificarydiscontinuarelmismoencualquiermomento,sinningunaresponsabilidad.

LaCompañía,conoficinasregistradasubicadasenOneBowermanDrive,BeavertonOR,97005,EE.UU.,eslaúnicaresponsableporlaadministracióndelPlany la participación en el mismo y, en el caso del Participante, la adquisición de Acciones no establece, de forma alguna, una relación de empleo entre elParticipante y la Compañía, ya que la participación en el Plan por parte del Participante es completamente comercial así como tampoco establece ningúnderechoentreelParticipanteyelEmpleador.

Reconocimiento del Documento del Plan. AlaceptarlaOpción,elParticipantereconocequeharecibidocopiasdelPlan,queharevisadoelPlanyelAcuerdoensutotalidadyqueentiendeyaceptalasdisposicionescontenidasenelPlanyenelAcuerdo.

Adicionalmente,alaceptarlaopciónelParticipantereconocequehaleídoyqueapruebaespecíficayexpresamentelostérminosycondicionescontenidosenelApartado 1 en el Apéndice A, en lo cual se encuentra claramente descrito y establecido lo siguiente: (i) la participación en el Plan no constituye un derechoadquirido; (ii) el Plan y la participación en el mismo es ofrecida por la Compañía de forma enteramente discrecional; (iii) la participación en el Plan esvoluntaria;y(iv)laCompañía,asícomosusociedadcontrolante,subsidiariasofilialesnosonresponsablesporcualquierdisminuciónenelvalordelasaccionesenrelaciónconlaOpción.

Finalmente, por medio de la presente, el Participante declara que no se reserva ninguna acción o derecho para interponer una demanda en contra de laCompañíaporcompensación,dañooperjuicioalgunocomoresultadodelaparticipaciónenelPlany,porlotanto,otorgaelmásampliofiniquitoalEmpleador,asícomoalaCompañíaysusociedadcontrolante,subsidiariasofilialesconrespectoacualquierdemandaquepudieraoriginarseenvirtuddelPlan.

NETHERLANDS

Terms and Conditions

Labor Law Acknowledgment. By accepting the Option, the Participant acknowledges that the Option is intended as an incentive for the Participant to remainemployed with the Employer and is not intended as remuneration for labor performed.

PHILIPPINES

Notifications

Securities Law Information . The sale or disposal of Shares acquired under the Plan may be subject to certain restrictions under Philippine securities laws. Thoserestrictions should not apply if the offer and resale of Shares takes place outside of the Philippines through the facilities of a stock exchange on which the Sharesare listed. The Shares are currently listed on the New York Stock Exchange.

POLAND

Notifications

Exchange Control Information. If the Participant transfers funds in excess of €15,000 (or PLN15,000, if such transfer of funds is connected with businessactivity of an entrepreneur) into or out of Poland in connection with the purchase or sale of shares acquired upon exercise of the Option, the funds must betransferred via a bank in Poland. The Participant is required to retain the documents connected with a foreign exchange transaction for a period of five (5) years, asmeasured from the end of the year in which such transaction occurred.

Further, if the Participant holds shares acquired upon exercise of the Option and/or maintains a bank or brokerage account abroad, the Participant will havereporting duties to the National Bank of Poland if the total value of securities and cash held in such foreign accounts exceeds PLN7 million. The Participant mustfile such reports on the transactions and balances of the accounts on a quarterly basis. TheParticipant shouldconsult withhisorherpersonallegal advisortodeterminewhatheorshemustdotofulfillanyapplicablereportingduties.

PORTUGAL

Terms and Conditions

Language Consent. The Participant hereby expressly declares that he or she has full knowledge of the English language and has read, understood and fullyaccepted and agreed with the terms and conditions established in the Plan and the Agreement.

OContratado,pelopresenteinstrumento,declaraexpressamentequetemplenoconhecimentodalínguainglesaequeleu,compreendeuelivrementeaceitoueconcordoucomostermosecondiçõesestabelecidasnoPlanoenoAcordodeAtribuição(Agreementeminglês).

Notifications

Exchange Control Information. If the Participant holds shares purchased upon exercise of the Option, the acquisition of shares should be reported to the BancodePortugalfor statistical purposes. If the shares are deposited with a commercial bank or financial intermediary in Portugal, such bank or financial intermediarywill submit the report on the Participant’s behalf. If the shares are not deposited with a commercial bank or financial intermediary in Portugal, the Participant isresponsible for submitting the report to the BancodePortugal.

RUSSIA

Terms and Conditions

U.S. Transaction and Sale Restrictions. Any Shares issued upon exercise of the Option shall be delivered to the Participant through a brokerage account in theU.S. The Participant may hold the shares in his or her brokerage account in the U.S.; however, in no event will the shares issued to the Participant and/or sharecertificates or other instruments be delivered to the Participant in Russia. The Participant is not permitted to make any public advertising or announcementsregarding the Option or shares in Russia,

or promote these shares to other Russian legal entities or individuals, and the Participant is not permitted to sell or otherwise dispose of the shares directly to otherRussian legal entities or individuals. The Participant is permitted to sell shares only on the New York Stock Exchange and only through a U.S. broker.

Notifications

Securities Law Information. This Agreement, the Plan and all other materials that the Participant may receive regarding participation in the Plan do not constituteadvertising or an offering of securities in Russia. The issuance of securities pursuant to the Plan has not and will not be registered in Russia; hence, the securitiesdescribed in any Plan-related documents may not be used for offering or public circulation in Russia.

Please note that, under the Russian law, the Participant is not permitted to sell the Company’s shares directly to other Russian individuals and the Participant is notpermitted to bring share certificates into Russia.

Exchange Control Information. In order to perform a cash exercise of the Option, the Participant must remit the funds from a foreign currency account at anauthorized bank in Russia. This requirement does not apply if the Participant uses a cashless method of exercise, such that there is no remittance of funds out ofRussia.

Under exchange control regulations, within a reasonably short time after sale of the shares acquired upon exercise of the Option, the Participant must repatriate thesale proceeds to Russia. Such sale proceeds must be initially credited to the Participant through a foreign currency account at an authorized bank in Russia. Afterthe sale proceeds are initially received in Russia, they may be further remitted to foreign banks in accordance with Russian exchange control laws.

However, starting January 1, 2018, cash proceeds from the sale of Shares listed on a foreign exchange on the legally approved list ( e.g. , the New York StockExchange) also can be paid directly to the Participant’s foreign bank account opened with a bank located in Organisation for Economic Cooperation Development(“OECD”) or Financial Action Task Force (“FATF”) countries. Further, the repatriation requirement does not apply to dividends paid on Shares, which can bedeposited directly into a foreign bank or brokerage account opened with a foreign brokerage firm or bank located in OECD or FATF countries.

Labor Law Information. If the Participant continues to hold Shares acquired at exercise of the Option after an involuntary termination of employment, theParticipant may not be eligible to receive unemployment benefits in Russia.

Anti-Corruption Legislation Information. Under anti-corruption laws, individuals holding public office in Russia, as well as their spouses and dependentchildren, may be prohibited from opening or maintaining a foreign brokerage or bank account and holding any securities, whether acquired directly or indirectly, ina foreign company (including shares acquired under the Plan). The Participant is strongly advised to consult with his or her personal legal advisor to determinewhether the regulation applies to the Participant.

SINGAPORE

Notifications

Securities Law Information .The Options were granted to the Participant pursuant to the “Qualifying Person” exemption under section 273(1)(f) of the SingaporeSecurities and Futures Act (Chapter 289, 2006 Ed.) (“SFA”). The Plan has not been lodged or registered as a prospectus with the Monetary Authority of Singapore.The Participant should note that his or her Options are subject to section 257 of the SFA and the Participant will not be able to make any subsequent sale inSingapore, or any offer of such subsequent sale of the Shares underlying the Options unless such sale or offer in Singapore is made (i) after six months from theGrant Date, (ii) pursuant to the exemptions under Part XIII Division (1) Subdivision (4) (other than section 280) of the SFA, or (iii) pursuant to, and in accordancewith the condition of, any other applicable provisions of the SFA.

Chief Executive Officer and Director Notification Obligation. If the Participant is the chief executive officer, a director, associate director or shadow director ofa Singapore subsidiary of the Company, the Participant is subject to certain notification requirements under the Singapore Companies Act. Among theserequirements is an obligation to notify the Singaporean subsidiary in writing when the Participant receives an interest ( e.g., Options, Shares) in the Company orany related companies. Please contact the Company to obtain a copy of the notification form. In addition, the Participant must notify the Singapore subsidiarywhen the Participant sells shares of the Company or any related company (including when the Participant sells shares acquired under the Plan). These notificationsmust be made within two business days of acquiring or disposing of any interest in the Company or any related company. In addition, a notification must be madeof the Participant’s interests in the Company or any related company within two business days of becoming the chief executive officer or a director.

SOUTH AFRICA

Terms and Conditions

Securities Law Acknowledgement. In compliance with South African Securities Law, the Participant acknowledges that he or she has been notified that thedocuments listed below are available for review online as follows:

1. a copy of the Company’s most recent Annual Report (Form 10-K), and

2. a copy of the Company’s most recent Plan Prospectus.

The Participant acknowledges that he or she may have copies of the above documents provided to him or her, at no charge, on request on the Company’s website athttp://investors.nike.com.

Responsibility for Taxes. The following provision supplements Section 7 of the Agreement:

By accepting the Option, the Participant agrees that, immediately upon exercise of the Option, he or she will notify the Employer of the amount of any gainrealized. If the Participant fails to advise the Employer of the gain realized upon exercise, he or she may be liable for a fine. The Participant will be solelyresponsible for paying any difference between the actual tax liability and the amount withheld.

Tax Clearance Certificate for Cash Exercises. If the Participant exercises the Option using a cash exercise method, the Participant must obtain and provide to theEmployer, or any third party designated by the Employer or the Company, a Tax Clearance Certificate (with respect to Foreign Investments) bearing the officialstamp and signature of the Exchange Control Department of the South African Revenue Service (“SARS”). The Participant must renew this Tax ClearanceCertificate every twelve months, or such other period as may be required by the SARS. If the Participant exercises by a cashless exercise method whereby no fundsare remitted out of South Africa, no Tax Clearance Certificate is required.

Notifications

Exchange Control Information. To participate in the Plan, the Participant must comply with exchange control regulations in South Africa and neither theCompany nor the Employer will be liable for any fines or penalties resulting from the Participant’s failure to comply with applicable laws.

Under current South African exchange control regulations, the Participant may invest a maximum of ZAR11,000,000 in offshore investments, including Shares.The first ZAR1,000,000 annual discretionary allowance requires no prior authorization. The next ZAR10,000,000 requires tax clearance. This limit does not applyto non‑resident employees. It is the Participant’s responsibility to ensure that he or she does not exceed this limit. The Participant should note that this is acumulative allowance and that his or her ability to remit funds for the purchase of the shares will be reduced if the Participant’s foreign investment limit is utilizedto make a transfer of funds offshore that is unrelated to the Plan. If the Participant wishes to exercise his or her Option through a cash purchase exercise and theZAR11,000,000 limit would be exceeded upon the exercise of the Option, the Participant may still transfer funds for payment of the shares provided that he or sheimmediately sells the shares and repatriates the full proceeds to South Africa. There is no repatriation requirement on the sale proceeds if the ZAR11,000,000 limitis not exceeded. If the Participant exercises the Option using a cashless exercise, the value of the shares thus purchased will not be counted against the Participant’soffshore investment allowance.

The Participant should consult his or her personal advisor to ensure compliance with applicable exchange control regulations in South Africa; as such regulationsare subject to frequent change. The Participant is responsible for ensuring compliance with all exchange control laws in South Africa.

SPAIN

Terms and Conditions

Nature of Grant. This provision supplements Section 1 of Appendix A:

In accepting the Option, the Participant consents to participate in the Plan and acknowledges that he or she has received a copy of the Plan.

The Participant understands that the Company has unilaterally, gratuitously and discretionally decided to grant stock options under the Plan to individuals who maybe employees of the Company or a subsidiary or affiliate throughout the world. The decision is a limited decision that is entered into upon the express assumptionand condition that any grant will not economically or otherwise bind the Company or any subsidiary or affiliate. Consequently, the Participant understands that theOption is granted on the assumption and condition that the Option and any shares acquired upon exercise of the Option are not part of any employment contract(either with the Company or any subsidiary or affiliate) and shall not be considered a mandatory benefit, salary for any purposes (including severancecompensation) or any other right whatsoever. In addition, the Participant understands that the Option would not be granted to the Participant but for theassumptions and conditions referred to herein; thus, the Participant acknowledges and freely accepts that should any or all of the assumptions be mistaken orshould any of the conditions not be met for any reason, then the grant of this Option shall be null and void.

This Option is a conditional right to Shares and can be forfeited in the case of, or affected by, the Participant’s termination of employment. This will be the case,for example, even if (1) the Participant is considered to be unfairly dismissed without good cause; (2) the Participant is dismissed for disciplinary or objectivereasons or due to a collective dismissal; (3) the Participant terminates employment due to a change of work location, duties or any other employment or contractualcondition; (4) the Participant terminates employment due to unilateral breach of contract of the Company or any of its subsidiaries; or (5) the Participant’semployment terminates for any other reason whatsoever, except for reasons specified in the Agreement. Consequently, upon termination of the Participant’semployment for any of the reasons set forth above, the Participant may automatically lose any rights to the unvested Options granted to him or her as of the date ofthe Participant’s termination of employment, as described in the Plan and the Agreement.

Notifications

Securities Law Information. No “offer of securities to the public,” as defined under Spanish law, has taken place or will take place in the Spanish territory inconnection with the grant of the Options. The Agreement has not been nor will it be registered with the ComisiónNacionaldelMercadodeValores, and does notconstitute a public offering prospectus.

Exchange Control Information. The Participant must declare the acquisition and sale of shares to the Dirección General de Comercio y Inversiones (the“DGCI”) for statistical purposes. Because the Participant will not purchase or sell the shares through the use of a Spanish financial institution, the Participant mustmake the declaration himself or herself by filing a D-6 form with the DGCI. Generally, the D-6 form must be filed each January while the shares are owned.

Further, the Participant is required to declare electronically to the Bank of Spain any securities accounts (including brokerage accounts held abroad), as well as theshares held in such accounts if the value of the transactions during the prior tax year or the balances in such accounts as of December 31 of the prior tax yearexceed €1,000,000.

Foreign Asset/Account Reporting Information. To the extent that the Participant holds shares and/or has bank accounts outside Spain with a value in excess of€50,000 (for each type of asset) as of December 31, the Participant will be required to report information on such assets on his or her tax return (tax form 720) forsuch year. After such shares and/or accounts are initially reported, the reporting obligation will apply for subsequent years only if the value of any previously-reported shares or accounts increases by more than €20,000.

SRI LANKA

Terms and Conditions

Settlement of Option. Due to local regulatory requirements, notwithstanding anything to the contrary in the Agreement or the Plan, the Participant will not receiveany Shares upon exercise of the Option. Instead, the Participant will receive a cash payment equal to the fair market value of the Shares on the date of exercise lessthe aggregate exercise price. The Company reserves the right to provide the Participant with other methods of settlement depending on the development of locallaw.

SWEDEN

There are no country-specific provisions.

SWITZERLAND

Notifications

Securities Law Information. The grant of the Option is considered a private offering in Switzerland and is, therefore, not subject to registration in Switzerland.Neither this document nor any other material related to the Option constitutes a prospectus as such term is understood pursuant to Article 652a of the Swiss Codeof Obligations, and neither this document nor any other materials related to the Option may be publicly distributed or otherwise made publicly available inSwitzerland. Neither this document nor any other offering or marketing material relating to the Option has been or will be filed with, approved or supervised byany Swiss regulatory authority (in particular, the Swiss Financial Supervisory Authority (FINMA)).

TAIWAN

Terms and Conditions

Data Privacy. This provision supplements Section 2 of Appendix A:

The Participant hereby acknowledges that he or she has read and understood the terms regarding collection, processing and transfer of Data contained in thisAgreement and by participating in the Plan, the Participant agrees to such terms. In this regard, upon request of the Company or the Employer, the Participantagrees to provide an executed data privacy consent form to the Employer or the Company (or any other agreements or consents that may be required by theEmployer or the Company) that the Company and/or the Employer may deem necessary to obtain under the data privacy laws in the Participant’s country, eithernow or in the future. The Participant understands he or she will not be able to participate in the Plan if the Participant fails to execute any such consent oragreement.

Notifications

Securities Law Information . The Option and the Shares underlying the Option are available only for employees of the Company and its subsidiaries andaffiliates. It is not a public offer of securities by a Taiwanese company.

Exchange Control Information. The Participant may acquire and remit foreign currency (including proceeds from the sale of shares of Common Stock and thereceipt of any dividends) into and out of Taiwan up to US$5,000,000 per year. If the transaction amount is TWD500,000 or more in a single transaction, theParticipant must submit a foreign exchange transaction form and also provide supporting documentation to the satisfaction of the remitting bank.

If the transaction amount is US$500,000 or more, the Participant may be required to provide additional supporting documentation to the satisfaction of theremitting bank. The Participant should consult his or her personal advisor to ensure compliance with applicable exchange control laws in Taiwan.

THAILAND

Notifications

Exchange Control Information. If the Participant remits funds out of Thailand to exercise his or her Option, it is the Participant’s responsibility to comply withapplicable exchange control laws. Under current exchange control regulations, Participant may remit funds out of Thailand up to US$1,000,000 per year topurchase shares (and otherwise invest in securities abroad) by submitting an application to an authorized agent, ( i.e., a commercial bank authorized by the Bank ofThailand to engage in the purchase, exchange and withdrawal of foreign currency). The application includes the Foreign Exchange Transaction Form, a letterdescribing the Option, a copy of the Plan and related documents, and evidence showing the nexus between the Company and the Employer. If the Participant uses acashless method of exercise that does not involve remitting funds out of Thailand, this requirement does not apply.

When the Participant sells shares issued upon exercise of the Option or receives dividends, the Participant must immediately repatriate the cash proceeds toThailand, and then convert such proceeds to Thai Baht within 360 days of repatriation. If the amount of the Participant’s proceeds in a single transaction exceedsUS$50,000, the Participant must specifically report the inward remittance to the Bank of Thailand on a foreign exchange transaction form. If the Participant fails tocomply with these obligations, the Participant may be subject to penalties assessed by the Bank of Thailand.

The Participant should consult his or her personal advisor prior to taking any action with respect to remittance of cash proceeds into Thailand. The Participant isresponsible for ensuring compliance with all exchange control laws in Thailand.

TURKEY

Notifications

Securities Law Information. By accepting the Option, the Participant understands and agrees that he or she is not permitted to sell any Shares acquired under thePlan in Turkey. The Shares are currently traded on the New York Stock Exchange, which is located outside of Turkey, under the ticker symbol “NKE” and theshares may be sold through this exchange.

Exchange Control Information. The Participant likely will be required to engage a Turkish financial intermediary to assist with the purchase of shares uponexercise of the Option, if the Participant uses a cash exercise method, and the subsequent sale of shares acquired under the Plan. As the Participant is solelyresponsible for complying with the financial intermediary requirements and because the application of the requirements to participation in the Plan is uncertain, theParticipant should consult his or her personal legal advisor prior to exercising the Option or selling any shares to ensure compliance.

UNITED ARAB EMIRATES

Notifications

Securities Law Information . The offer of Options under the Plan is made only to certain employees who meet the eligibility requirements in the Plan, andconstitutes an “exempt personal offer” of equity incentives to employees in the United Arab Emirates. The Agreement, the Plan, and other incidentalcommunication materials are intended for distribution only to employees and must not be delivered to, or relied on, by any other person.

The Emirates Securities and Commodities Authority and/or the Central Bank have no responsibility for reviewing or verifying any documents in connection withthis statement. The Ministry of Economy, the Dubai Department of Economic Development, the Emirates Securities and Commodities Authority, Central Bank andthe Dubai Financial Securities Authority, depending on the employee’s location in the United Arab Emirates, have not approved this statement, the Plan, theAgreement or any other documents the Participant may receive in connection with the Option or taken steps to verify the information set out therein, and have noresponsibility for such documents.

If the Participant does not understand the contents of the Agreement or the Plan, the Participant should consult his or her personal financial advisor.

UNITED KINGDOM

Terms and Conditions

UK Sub-Plan. The Option is granted under the Rules of the UK Sub-Plan to the NIKE, Inc. Stock Incentive Plan (the “UK Sub-Plan”). By accepting this Optiongrant, the Participant agrees to all of the terms and conditions of the Option grant, including the UK Sub-Plan. However, if the value at grant of the sharesunderlying the Option, when combined with the value of the shares underlying other outstanding Options granted under the UK Sub-Plan and held by theParticipant, exceeds £30,000, then the number of shares in excess of the threshold will not be subject to the terms applicable to Options granted under the UK Sub-Plan and will not be considered qualified for UK tax purposes.

The following specific modifications to the Agreement apply in relation to the Option granted under the UK Sub-Plan:

Section 5. No adjustment to the Option granted under the UK Sub-Plan shall take effect until it has been approved by HM Revenue and Customs (“HMRC”).

Section 6.1.1. The Option granted under the UK Sub-Plan may be exchanged for shares of a surviving or acquiring corporation only in circumstances where therequirements of paragraphs 26 and 27 of Schedule 4 to the Income Tax (Earnings and Pensions) Act 2003 are satisfied.

Section 7. The NIKE, Inc. Policy for Recoupment of Incentive Compensation shall not apply to any shares acquired pursuant to the Option granted under the UKSub-Plan.

No Deemed Exercise . Section 5(b) of the Agreement shall not apply to the Participant, unless otherwise determined by the Committee. Instead, any portion of theOption that remains outstanding as of the Expiration Date shall expire and be forfeited as of such date.

Responsibility for Taxes. The following provision supplements Section 7 of the Agreement:

Without limitation to Section 7 of the Agreement, the Participant agrees that the Participant is liable for all Tax-Related Items and hereby covenants to pay all suchTax-Related Items as and when requested by the Company or the Employer or by HMRC (or any other tax authority or any other relevant authority). TheParticipant also agrees to indemnify and keep indemnified the Company and the Employer against any Tax-Related Items that they are required to pay or withholdor have paid or will pay to HMRC (or any other tax authority or any other relevant authority) on the Participant’s behalf.

Notwithstanding the foregoing, if the Participant is a director or executive officer of the Company (within the meaning of Section 13(k) of the Exchange Act), theParticipant may not be able to indemnify the Company or the Employer for the amount of any income tax not collected from or paid by the Participant, as it may beconsidered a loan. In this case, the amount of any uncollected income tax may constitute a benefit to the Participant on which additional income tax and employeenational insurance contributions (“ NICs ”) may be payable. The Participant agrees to report and pay any income tax due on this additional benefit directly toHMRC under the self-assessment regime and to pay the Employer for the value of the employee NICs due on this additional benefit, which the Company or theEmployer may recover from the Participant by any of the means referred to in Section 7 of the Agreement.

VIETNAM

Terms and Conditions

Method of Exercise . Due to regulatory requirements, the Participant understands that the Participant will be restricted to the cashless sell-all method of exercise.To complete a cashless sell-all exercise, the Participant understands that the Participant needs to instruct his or her broker to: (i) sell all of the Shares issued uponexercise; (ii) use the proceeds to pay the exercise price, brokerage fees and any applicable Tax-Related Items; and (iii) remit the balance in cash to the Participant.The Participant will not be permitted to hold shares after exercise. Depending on the development of local laws or the Participant’s country of residence, theCompany reserves the right to modify the methods of exercising the Option and, in its sole discretion, to permit any other method of exercise and payment ofTax‑Related Items permitted under the Agreement.

No Deemed Exercise . Section 5(b) of the Agreement shall not apply to the Participant, unless otherwise determined by the Committee. Instead, any portion of theOption that remains outstanding as of the Expiration Date shall expire and be forfeited as of such date.

Exchange Control Restrictions. All cash proceeds from the sale of shares as described above must be immediately repatriated to Vietnam. Such repatriation ofproceeds may need to be effectuated through a special exchange control account established by the Company or its subsidiary or affiliate, including the Employer.By accepting the Option, the Participant consents and agrees that the cash proceeds may be transferred to such special account prior to being delivered to theParticipant.

NIKE, INC.RESTRICTED STOCK UNIT AGREEMENT

Pursuant to the Stock Incentive Plan (the “Plan”) of NIKE, Inc., an Oregon corporation (the “Company”), the Company grants to the individual listed below (the“Participant”) the number of restricted stock units (“RSUs”) set forth below. The grant of RSUs obligates the Company to deliver one share of the Company’sClass B Common Stock (a “Share”) for each RSU upon vesting, subject to the terms and conditions of this agreement between the Company and the Participant(this “Agreement”). The Company also agrees that upon the vesting of each RSU, the Company will make a dividend equivalent cash payment with respect to suchvested RSU in an amount equal to the total amount of dividends paid per Share for which the dividend record dates occurred after the Grant Date set forth belowand before the date of delivery of the underlying Share (the “Dividend Equivalent Payment”). By accepting this RSU grant, the Participant agrees to all of theterms and conditions of the Plan, the Agreement and any Appendices included with the Agreement. Capitalized terms not explicitly defined in this Agreement butdefined in the Plan shall have the same definitions as in the Plan.

1. Grant Terms.

Grant Terms Grant DetailsParticipant RSUs Grant Date

The RSUs will vest on the date(s) shown below with respect to the number of RSUs opposite such date(s):

Units Vesting Dates

2. Termination of Employment or Service. Except as provided in this Section 2, no RSUs will vest unless the Participant is employed by or in the service of theCompany on the applicable vesting date and shall have been so employed or provided such service continuously since the Grant Date. For purposes of thisAgreement, the Participant is considered to be employed by or in the service of the Company if the Participant is employed by or in the service of the Company orany parent or subsidiary corporation of the Company (an “Employer”). If the Participant’s employment or service with the Company terminates for any reasonother than the reasons specified in the subsections below, all unvested RSUs shall terminate and be forfeited on the date of such termination.

a) Death or Disability. If the Participant’s employment or service with the Company terminates because of death or total disability (within the meaning ofSection 22(e)(3) of the Code), the RSUs shall immediately vest in full.

b) Absence on Leave. Absence on leave or on account of illness or disability under rules established by the committee of the Board of Directors of theCompany appointed to administer the Plan (the “Committee”) shall not be deemed an interruption of employment or service.

c) Change in Control. In the event of a Change in Control, treatment shall be pursuant to the terms provided in the Plan, provided that “Good Reason” shallhave the meaning provided in the Plan, except that:

i) clause (A) of the “Good Reason” definition shall be replaced in its entirety with the following language: “the assignment of a different title, job orresponsibilities that results in a material decrease in the level of responsibility of the award holder after Shareholder Approval, if applicable, or theChange in Control when compared to the award holder’s level of responsibility for the Company’s operations prior to Shareholder Approval, ifapplicable, or the Change in Control; provided that Good Reason shall not exist if the award holder continues to have the same or a greater generallevel of responsibility for Company operations after the Change in Control as the award holder had prior to the Change in Control even if theCompany operations are a subsidiary or division of the surviving company,” and

ii) the following language shall be added to the end of the “Good Reason” definition: “Notwithstanding any provision in this Agreement or the Plan tothe contrary, a termination of an employment or other service relationship by the

award holder will not be for Good Reason unless (1) the award holder notifies the Company in writing of the existence of the condition that theaward holder believes constitutes Good Reason within thirty (30) days of the initial existence of such condition (which notice specifically identifiessuch condition), (ii) the Company fails to remedy such condition within thirty (30) days after the date that it receives such notice (the “RemedialPeriod”), and (iii) the award holder actually terminates the award holder’s employment or other service relationship within thirty (30) days after theexpiration of the Remedial Period. If the award holder terminates his or her employment or other service relationship before the expiration of theRemedial Period or after the Company remedies the condition, then the award holder’s termination will not be considered to be for Good Reason.”

3. Rights as a Shareholder. The Participant shall have no rights as a shareholder with respect to any RSU, whether vested or unvested, or any Share underlyingsuch RSU, until the RSU vests and the Participant becomes the holder of record of the underlying Share. Except as explicitly provided in this Agreement or thePlan, no adjustment shall be made for dividends or other rights for which the record date occurs before the date the Participant becomes the holder of record.

4. Clawback. The Company may require the Participant to deliver or otherwise repay to the Company the RSUs and any Shares or other amount or property thatmay be issued, delivered or paid in respect of the RSUs, as well as any consideration that may be received in respect of a sale or other disposition of any suchShares or property, as follows:

a) If, during the period of the Participant’s employment or service with the Company or an Employer (the “Employment Period”) or at any time thereafter,the Participant has committed or engaged in a breach of confidentiality, or an unauthorized disclosure or use of inside information, customer lists, tradesecrets or other confidential information of the Company or any of its subsidiaries or otherwise has breached any employee invention and secrecyagreement or similar agreement with the Company or any of its subsidiaries;

b) If, during the Employment Period or at any time thereafter, the Participant has committed or engaged in an act of theft, embezzlement or fraud, breachedany covenant not to compete or non-solicitation or non-disclosure agreement or similar agreement with the Company or any of its subsidiaries, ormaterially breached any other agreement to which the Participant is a party with the Company or any of its subsidiaries;

c) Pursuant to any applicable securities, tax or stock exchange laws, rules or regulations relating to the recoupment or clawback of incentive compensation,as in effect from time to time;

d) Pursuant to the NIKE, Inc. Policy for Recoupment of Incentive Compensation as approved by the Committee and in effect on the Grant Date, or suchother policy for clawback or recoupment of incentive compensation as may subsequently be approved from time to time by the Committee; or

e) If, during the Employment Period or the one (1) year period thereafter (the “Restriction Period”), the Participant, directly or indirectly, owns, manages,controls or participates in the ownership, management or control of, or becomes employed by, consults for or becomes connected in any manner with, anybusiness engaged anywhere in the world in the athletic footwear, athletic apparel or sports equipment, sports electronics/technology and sports accessoriesbusiness or any other business that directly competes with the then-current existing or reasonably anticipated business of the Company or any of itsparent, subsidiaries or affiliated corporations (a “Competitor”); the Company has the option, in its sole discretion, to elect to waive all or a portion of theRestriction Period or to limit the definition of Competitor.

5. Delivery. Except as otherwise provided in the Plan or this Agreement, within 30 days after any of the RSUs become vested, the Company shall deliver to theParticipant for each RSU that vested (a) one Share in either certificated form, uncertificated form or via book entry credit, and (b) the Dividend EquivalentPayment. Notwithstanding the foregoing, if (i) the Participant’s employment or service is terminated by the Company or Employer without Cause or theParticipant’s employment or service is terminated by the Participant for Good Reason after Shareholder Approval but before a Change in Control and (ii) theChange in Control occurs within one year following such termination, such Shares and the Dividend Equivalent Payment shall be delivered simultaneously withthe closing of the Change in Control such that the Participant will participate as a shareholder in receiving proceeds from such transaction with respect to thoseShares.

6. Nontransferability. The RSUs are nonassignable and nontransferable by the Participant, either voluntarily or by operation of law, except by will or by thelaws of descent and distribution of the state or country of the Participant’s domicile at the time of death.

7. Responsibility for Taxes.

a) The Participant acknowledges that, regardless of any action taken by the Company or, if different, the Employer, the ultimate liability for all income tax,social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items related to the Participant’s participation in the Plan andlegally applicable to the Participant or deemed by the Company or the Employer to be an appropriate charge to the Participant even if technically due bythe Company or the Employer (“Tax-Related Items”) is and remains the Participant’s responsibility and may exceed the amount actually

withheld by the Company or the Employer. The Participant further acknowledges that the Company and/or the Employer (i) make no representations orundertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the RSUs, including, but not limited to, the grant, vestingor settlement of the RSUs, the subsequent sale of Shares acquired pursuant to such settlement and the receipt of any dividends or any Dividend EquivalentPayment, and (ii) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the RSUs to reduce or eliminate theParticipant’s liability for Tax-Related Items or achieve any particular tax result. Further, if the Participant is subject to Tax-Related Items in more thanone jurisdiction, the Participant acknowledges that the Company and/or the Employer (or former employer, as applicable) may be required to withhold oraccount for Tax-Related Items in more than one jurisdiction.

b) The Participant shall, immediately upon notification of the amount due, if any, pay to the Company by wire transfer, or irrevocably instruct a broker topay from stock sales proceeds, amounts necessary to satisfy any applicable federal, state and local tax withholding requirements. If additional withholdingis or becomes required (as a result of vesting or settlement of any RSUs or as a result of the disposition of Shares acquired pursuant to the vesting of anyRSUs) beyond any amount deposited before delivery of the Shares, the Participant shall pay such amount to the Company, by wire transfer, on demand. Ifthe Participant fails to pay the amount demanded, the Company or the Employer may withhold that amount from other amounts payable to the Participant,including salary, subject to applicable law.

8. Changes in Capital Structure. If the outstanding Shares are hereafter increased or decreased or changed into or exchanged for a different number or kind ofshares or other securities of the Company by reason of any recapitalization, reclassification, stock split, combination of shares or dividend payable in shares,appropriate adjustment shall be made by the Committee in the number and kind of shares subject to the unvested RSUs so that the Participant’s proportionateinterest before and after the occurrence of the event is maintained. Notwithstanding the foregoing, the Committee shall have no obligation to effect any adjustmentthat would or might result in the issuance of fractional shares, and any fractional shares resulting from any adjustment may be disregarded or provided for in anymanner determined by the Committee. Any such adjustments made by the Committee shall be conclusive.

9. Electronic Delivery/Acceptance . The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in thePlan by electronic means. The Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-lineor electronic system established and maintained by the Company or a third party designated by the Company. If the Participant does not complete the on-line orelectronic acceptance process, the Participant will be deemed to have accepted the RSUs and have agreed to the terms provided in the Plan and this Agreementprior to the first vest date.

10. Additional Company Provisions.

a) Conditions on Obligations. The Company shall not be obligated to issue Shares upon vesting of the RSUs if the Company is advised by its legal counselthat such issuance would violate applicable U.S. or non-U.S. state or federal laws or regulations, including securities laws or exchange control regulations.

b) Imposition of Other Requirements. The Company reserves the right to impose other requirements upon the Participant’s participation in the Plan, on theRSUs and on any Shares acquired under the Plan, to the extent the Company determines it is necessary or advisable for legal or administrative reasons,and to require the Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

c) Amendments. The Company may at any time amend this Agreement, provided that no amendment that adversely impacts the rights of the Participantunder this Agreement may be made without the Participant’s written consent.

d) Committee Determinations. The Participant agrees to accept as binding, conclusive and final all decisions and interpretations of the Committee or otheradministrator of the Plan as to the provisions of the Plan or this Agreement or any questions arising thereunder or hereunder.

e) Severability. The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable,in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.

f) Governing Law; Attorneys’ Fees. The RSUs and the provisions of this Agreement are governed by, and subject to, the laws of the State of Oregon. Forpurposes of litigating any dispute that arises under this grant or the Agreement, the parties hereby submit to and consent to the exclusive jurisdiction of,and agree that such litigation shall exclusively be conducted in, the courts of Washington County, Oregon or the United States District Court for theDistrict of Oregon, where this grant is made and/or to be performed. In the event either party institutes litigation hereunder, the prevailing party shall beentitled to reasonable attorneys’ fees to be set by the trial court and, upon any appeal, the appellate court.

g) Section 409A. The parties intend that this Agreement and the benefits provided hereunder be exempt from the requirements of Section 409A of the Codeto the maximum extent possible, whether pursuant to the short-term deferral exception described in Treasury Regulation Section 1.409A-1(b)(4) orotherwise. To the extent Section 409A of the Code is applicable to this Agreement and such benefits, the parties intend that this Agreement and suchbenefits comply with the deferral, payout, and other limitations and restrictions imposed under Section 409A of the Code. Notwithstanding any otherprovision of this Agreement or any other agreement to the contrary, this Agreement shall be interpreted, operated and administered in a manner consistentwith such intentions. Without limiting the generality of the foregoing, any delivery or distribution contemplated under this Agreement will be made to aParticipant who is a “specified employee” (as defined in the NIKE, Inc. Deferred Compensation Plan or any subsequent deferred compensation plan ofthe Company, as in effect from time to time) at the time of a “separation from service” (within the meaning of Section 409A of the Code) within thirty(30) days following the earlier of (i) the expiration of the six-month period following the Participant’s separation from service, and (ii) the Participant’sdeath, to the extent such delayed payment is otherwise required to avoid a prohibited distribution under Section 409A of the Code. For purposes ofSection 409A of the Code, each payment or benefit payable pursuant to this Agreement shall be treated as a separate payment. Notwithstanding theforegoing, this Agreement and the Plan may be amended by the Company at any time, without the consent of any party, to the extent necessary ordesirable to satisfy any of the requirements under Section 409A of the Code, but the Company shall not be under any obligation to make any suchamendment. Nothing in this Agreement or the Plan shall provide a basis for any person to take action against the Company or any affiliate based onmatters covered by Section 409A of the Code, including the tax treatment of any amount paid or RSUs granted under this Agreement, and neither theCompany nor any of its affiliates shall under any circumstances have any liability to the Participant or his or her estate or any other party for any taxes,penalties or interest due on amounts paid or payable under this Agreement, including taxes, penalties or interest imposed under Section 409A of the Code.

11. Additional Participant Provisions

a) No Right to Employment or Service. Nothing in the Plan or this Agreement shall (i) confer upon the Participant any right to be continued in theemployment of an Employer or interfere in any way with the Employer’s right to terminate the Participant’s employment at will at any time, for anyreason, with or without Cause, or to decrease the Participant’s compensation or benefits, or (ii) confer upon the Participant any right to be retained oremployed by the Employer or to the continuation, extension, renewal or modification of any compensation, contract or arrangement with or by theEmployer. The determination of whether to grant any RSUs under the Plan is made by the Company in its sole discretion. The grant of the RSUs shall notconfer upon the Participant any right to receive any additional RSUs or other award under the Plan or otherwise.

b) No Advice Regarding Grant. The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendationsregarding the Participant’s participation in the Plan, or the Participant’s acquisition or sale of the underlying Shares. The Participant is hereby advised toconsult with the Participant’s own personal tax, legal and financial advisors regarding the Participant’s participation in the Plan before taking any actionrelated to the Plan.

c) Transfer of Rights and Benefits; Successors. This Agreement shall be binding upon, and shall inure to the benefit of and be enforceable by, theCompany’s successors and assigns. Subject to the restrictions on transfer of this Agreement, this Agreement shall be binding upon the Participant’s heirs,executors, administrators, successors and assigns.

12. Appendices A and B. Notwithstanding any provisions in this Agreement, if the Participant is a resident of any country other than the United States, the grantof RSUs shall be subject to the special terms and conditions set forth in the Appendix A to this Agreement and any country-specific terms and conditions for theParticipant’s country set forth in Appendix B to this Agreement. Moreover, if the Participant relocates outside of the United States to one of the countries includedin Appendix B, or from one such country to another such country, the special terms and conditions for all non-U.S. participants and for such country will apply tothe Participant, to the extent the Company determines that the application of such terms and conditions is necessary or advisable for legal or administrative reasons.The Appendices A and B constitutes part of this Agreement.

13. Complete Agreement. This Agreement, including the Appendices A and B, and the Plan constitute the entire agreement between the Participant and theCompany, both oral and written, concerning the matters addressed herein, except with regard to the imposition of other requirements as described under Section10(b) above, and all prior agreements or representations concerning the matters addressed herein, whether written or oral, express or implied, are terminated and ofno further effect.

APPENDIX A

TO THE

RESTRICTED STOCK UNIT AGREEMENT

SPECIAL TERMS AND CONDITIONS FOR NON-U.S. PARTICIPANTS

This Appendix A includes additional terms and conditions that govern RSUs for Participants residing outside of the United States. Capitalized terms not explicitlydefined in this Appendix A but defined in the Agreement shall have the same definitions as in the Agreement.

1. Nature of Grant . In accepting the RSUs, the Participant understands, acknowledges and agrees that:

1.1 the Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by theCompany at any time, to the extent permitted by the Plan;

1.2 the grant of the RSUs is exceptional, voluntary and occasional and does not create any contractual or other right to receive future grants of RSUs, orbenefits in lieu of RSUs, even if RSUs have been granted in the past;

1.3 all decisions with respect to future RSUs or other grants, if any, will be at the sole discretion of the Company;

1.4 the RSUs grant and the Participant’s participation in the Plan shall not create a right to employment or be interpreted as forming an employment orservices contract with the Company;

1.5 the Participant is voluntarily participating in the Plan;

1.6 the RSUs and the Shares subject to the RSUs, and the income from and value of same, are not intended to replace any pension rights orcompensation;

1.7 the RSUs and the Shares subject to the RSUs, and the income from and value of same, are not part of normal or expected compensation for anypurpose, including for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses,holiday pay, long-service awards, pension or retirement or welfare benefits or similar payments;

1.8 unless otherwise agreed with the Company, the RSUs and the Shares subject to the RSUs, and the income from and value of same, are not grantedfor, or in connection with, any service the Participant may provide as a director of any parent or subsidiary corporation of the Company;

1.9 the future value of the underlying Shares is unknown, indeterminable and cannot be predicted with certainty;

1.10 no claim or entitlement to compensation or damages shall arise from forfeiture of the RSUs resulting from the termination of the Participant’semployment or other service relationship (for any reason whatsoever whether or not later found to be invalid or in breach of employment laws in thejurisdiction where the Participant is employed or the terms of the Participant’s employment agreement, if any), and in consideration of the grant ofthe RSUs, the Participant agrees not to institute any claim against the Company, any parent or subsidiary corporation of the Company, including theEmployer;

1.11 unless otherwise provided in the Plan or by the Company in its discretion, the Shares and benefits evidenced by this Agreement do not create anyentitlement to have the Shares or any such benefits transferred to, or assumed by, another company nor to be exchanged, cashed out or substitutedfor, in connection with any corporation transaction affecting the Shares; and

1.12 neither the Company, the Employer nor any parent or other subsidiary corporation of the Company shall be liable for any foreign exchange ratefluctuation between the Participant’s local currency and the United States Dollar that may affect the value of the RSUs or of any amounts due to theParticipant pursuant to the Dividend Equivalent Payment or the subsequent sale of any Shares acquired upon vesting of the RSUs.

2. Data Privacy. The Participant hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of theParticipant’s personal data as described in this Agreement and any other RSU grant materials by and among, as applicable, the Employer, the Company andany parent or subsidiary corporation for the exclusive purpose of implementing, administering and managing the Participant’s participation in the Plan .

The Participant understands that the Company and the Employer may hold certain personal information about the Participant, including, but notlimited to, the Participant’s name, home address and telephone number, email address, date of birth, social insurance number, passport or other identificationnumber, salary, nationality, job title, any Shares or directorships

held in the Company, details of all RSUs or any other entitlement to Shares awarded, canceled, exercised, vested, unvested or outstanding in the Participant’sfavor (“Data”), for the exclusive purpose of implementing, administering and managing the Plan.

The Participant understands that Data will be transferred to E*TRADE Corporate Financial Services, Inc. and any of its affiliated companies(“E*TRADE”), or such other stock plan service provider as may be selected by the Company in the future, which is assisting the Company with theimplementation, administration and management of the Plan. The Participant understands that the recipients of the Data may be located in the United Statesor elsewhere, and that the recipients’ country ( e.g. , the United States) may have different data privacy laws and protections than the Participant’s country.The Participant understands that he or she may request a list with the names and addresses of any potential recipients of the Data by contacting his or herlocal human resources representative. The Participant authorizes the Company, E*TRADE and any other possible recipients which may assist the Company(presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic orother form, for the sole purpose of implementing, administering and managing his or her participation in the Plan. The Participant understands that Data willbe held only as long as is necessary to implement, administer and manage the Participant’s participation in the Plan. The Participant understands he or shemay, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse orwithdraw the consents herein, in any case without cost, by contacting in writing his or her local human resources representative. Further, the Participantunderstands that he or she is providing the consents herein on a purely voluntary basis. If the Participant does not consent, or if the Participant later seeks torevoke his or her consent, his or her employment status or service with the Employer will not be affected; the only consequence of refusing or withdrawing theParticipant’s consent is that the Company would not be able to grant RSUs or other equity awards to the Participant or administer or maintain such awards.Therefore, the Participant understands that refusing or withdrawing his or her consent may affect the Participant’s ability to participate in the Plan. For moreinformation on the consequences of the Participant’s refusal to consent or withdrawal of consent, the Participant understands that he or she may contact hisor her local human resources representative.

Upon request of the Company or the Employer, the Participant agrees to provide a separate executed data privacy consent form (or any otheragreements or consents that may be required by the Company and/or the Employer) that the Company and/or the Employer may deem necessary to obtain fromthe Participant for the purpose of administering his or her participation in the Plan in compliance with the data privacy laws in the Participant’s country,either now or in the future. The Participant understands and agrees that he or she will not be able to participate in the Plan if the Participant fails to provideany such consent or agreement requested by the Company and/or the Employer.

3. Language. The Participant acknowledges that he or she is sufficiently proficient in English to understand the terms and conditions of this Agreement.Furthermore, if the Participant has received this Agreement or any other document related to the Plan translated into a language other than English and if themeaning of the translated version is different than the English version, the English version will control.

4. Insider Trading Restrictions/Market Abuse Laws. The Participant acknowledges that, depending on his or her country, the broker’s country, or the countryin which the Shares are listed, the Participant may be subject to insider trading restrictions and/or market abuse laws in applicable jurisdictions, which may affecthis or her ability to accept, acquire, sell, or attempt to sell, or otherwise dispose of Shares or rights to Shares ( e.g.,RSUs), or rights linked to the value of Shares,during such times as the he or she is considered to have “inside information” regarding the Company (as defined by the laws or regulations in the applicablejurisdictions, including the United States and the Participant’s country). Local insider trading laws and regulations may prohibit the cancellation or amendment oforders the Participant placed before possessing inside information. Furthermore, the Participant may be prohibited from (i) disclosing the inside information to anythird party, including fellow employees (other than on a “need to know” basis) and (ii) “tipping” third parties or causing them to otherwise buy or sell securities.Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under the applicable Company InsiderTrading Policy. The Participant acknowledges that it is his or her responsibility to comply with any applicable restrictions, and the Participant is advised to speakto his or her personal advisor on this matter.

5. Foreign Asset/Account Reporting Requirements. The Participant acknowledges that there may be certain foreign asset and/or account reportingrequirements which may affect his or her ability to acquire or hold Shares acquired under the Plan or cash received from participating in the Plan (including fromany dividends paid on Shares acquired under the Plan) in a brokerage or bank account outside the Participant’s country. The Participant may be required to reportsuch accounts, assets or transactions to the tax or other authorities in his or her country. The Participant also may be required to repatriate sale proceeds or otherfunds received as a result of the Participant’s participation in the Plan to his or her country through a designated bank or broker within a certain time after receipt.The Participant acknowledges that it is his or her responsibility to be compliant with such regulations, and the Participant is advised to consult his or her personallegal advisor for any details.

APPENDIX B

TO THE

RESTRICTED STOCK UNIT AGREEMENT

COUNTRY-SPECIFIC TERMS FOR NON-U.S. PARTICIPANTS

This Appendix B includes additional terms and conditions that govern RSUs for Participants residing and/or working in the countries below. Capitalized terms notexplicitly defined in this Appendix B but defined in the Agreement shall have the same definitions as in the Agreement.

This Appendix B also includes information regarding certain issues of which the Participant should be aware with respect to participation in the Plan. Theinformation is based on the securities, exchange control and other laws in effect in the respective countries as of February 2018. Such laws are often complex andchange frequently. In addition, the information contained herein is general in nature and may not apply to the Participant’s particular situation, and the Company isnot in a position to assure the Participant of a particular result.

By accepting the RSUs, the Participant agrees to comply with applicable laws associated with participation in the Plan. The Participant further acknowledges that ifhe or she has any questions regarding his or her responsibilities in this regard, the Participant will seek advice from his or her personal legal advisor, at his or herown cost, and further agrees that neither the Company, nor any parent or subsidiary corporation of the Company, including the Employer, will be liable for anyfines or penalties resulting from Participant’s failure to comply with applicable laws concerning the Participant's participation in the Plan.

If the Participant is a citizen or resident of a country other than the one in which the Participant is currently working and/or residing, transfers employment and/orresidency after the RSUs are granted or is considered resident of another country for local law purposes, the information contained herein may not be applicable tothe Participant, and the Company shall, in its discretion, determine to what extent the terms and conditions contained herein shall apply to the Participant.

ARGENTINA

Notifications

Securities Law Information . Shares of the Company are not publicly offered or listed on any stock exchange in Argentina. The offer is private and not subject tothe supervision of any Argentine governmental authority.

Exchange Control Information . Exchange control regulations in Argentina are subject to frequent change. The Participant is solely responsible for complyingwith any applicable exchange control rules and should consult with his or her personal legal advisor prior to receiving proceeds from the sale of Shares acquiredupon vesting of the RSUs, cash dividends or Dividend Equivalent Payments.

Foreign Asset/Account Reporting Information . If the Participant holds Shares (acquired upon vesting of the RSUs or otherwise) as of December 31, theParticipant is required to report certain information regarding the Shares on his or her annual tax return.

AUSTRALIA

Terms and Conditions

Data Privacy . This provision supplements Section 2 of Appendix A:

The Company can be contacted at One Bowerman Drive, Beaverton OR, 97005, U.S.A. The Australian Employer can be contacted at NIKE Australia Pty. Ltd., 28Victoria Crescent, PO Box 443, Abbotsford VIC 3067, Australia or Hurley Australia Pty. Ltd., 24 Cross Street, Brookvale NSW 2100, Australia, as applicable.

The Participant’s Data will be held in accordance with the Company’s privacy policy, a copy of which can be obtained by contacting the Company or theAustralian Employer at the address listed above. The Company’s privacy policy contains, among other things, details of how the Participant can access and seekcorrection of Data held in connection with this Agreement.

The Participant understands and agrees that Data may be transferred to recipients located outside of Australia, including the United States and any other countrywhere the Company has operations.

Breach of Law . Notwithstanding anything else in the Plan or the Agreement, the Participant will not be entitled to, and shall not claim any benefit (includingwithout limitation a legal right) under the Plan if the provision of such benefit would give rise to a breach of Part 2D.2 of the Corporations Act 2001 (Cth), anyother provision of that Act, or any other applicable statute, rule or regulation which limits or restricts the giving of such benefits. Further, the Employer is under noobligation to seek or obtain the approval of its shareholders in a general meeting for the purpose of overcoming any such limitation or restriction.

Australian Offer Document. The offer of RSUs is intended to comply with the provisions of the Corporations Act 2001, ASIC Regulatory Guide 49 and ASICClass Order CO 14/1000. Additional details are set forth in the Offer Document for the offer of RSUs to Australian resident employees, which will be provided tothe Participant with the Agreement.

Notifications

Exchange Control Information . Exchange control reporting is required for cash transactions exceeding AUD10,000 and for international fund transfers. If anAustralian bank is assisting with the transaction, the bank will file the report on behalf of the Participant.

Tax Information . The Plan is a plan to which Subdivision 83A-C of the Income Tax Assessment Act 1997 (Cth) applies (subject to conditions in the Act).

AUSTRIA

Notifications

Exchange Control Information . If the Participant holds Shares obtained through the Plan outside of Austria, the Employee must submit a report to the AustrianNational Bank. An exemption applies if the value of the Shares as of any given quarter does not meet or exceed €30,000,000 or as of December 31 does not meetor exceed €5,000,000. If the former threshold is exceeded, quarterly obligations are imposed, whereas if the latter threshold is exceeded, annual reports must begiven. If quarterly reporting is required, the reports must be filed by the fifteenth day of the month following the last day of the respective quarter. The annualreporting date is as of December 31 and the deadline for filing the annual report is January 31 of the following year.

When Shares are sold, or cash dividends or Dividend Equivalent Payments are received, there may be exchange control obligations if the cash received is heldoutside Austria. If the transaction volume of all the Participant’s accounts abroad meets or exceeds €10,000,000, the movements and balances of all accounts mustbe reported monthly, as of the last day of the month, on or before the fifteenth day of the following month.

BELGIUM

Notifications

Foreign Asset/Account Reporting Information. Belgium residents are required to report any securities held (including Shares) or bank or brokerage accountsopened and maintained outside Belgium on their annual tax returns. In a separate report, Belgium residents are also required to provide the National Bank ofBelgium with the account details of any such foreign accounts (including the account number, bank name and country in which any such account was opened).This report, as well as additional information on how to complete it, can be found on the website of the National Bank of Belgium, www.nbb.be , underKredietcentrales / Centrales des crédits caption. The Participant should consult his or her personal advisor to ensure compliance with applicable reportingobligations.

Stock Exchange Tax. From January 1, 2017, a stock exchange tax applies to transactions executed by a Belgian resident through a non-Belgian financialintermediary, such as E*TRADE. The stock exchange tax likely will apply when the Shares are sold. The Participant should consult with his or her personal taxadvisor for additional details on his or her obligations with respect to the stock exchange tax.

BRAZIL

Terms and Conditions

Compliance with Law. By accepting the RSUs, the Participant acknowledges his or her agreement to comply with applicable Brazilian laws and to pay any andall applicable taxes associated with the vesting of the RSUs, the receipt of any dividends or any Dividend Equivalent Payments, and the sale of Shares issued uponvesting of the RSUs.

Labor Law Acknowledgement . By accepting the RSUs, the Participant agrees that he or she is (i) making an investment decision, (ii) the Shares will be issued tothe Participant only if the vesting conditions are met, and (iii) the value of the underlying Shares is not fixed and may increase or decrease in value over the vestingperiod without compensation to the Participant.

Notifications

Exchange Control Information . Brazilian residents are required to submit an annual declaration of assets and rights held outside of Brazil to the Central Bank ofBrazil if the aggregate value of such assets and rights is equal to or greater than US$100,000. Quarterly reporting is required if such amount exceedsUS$100,000,000. Assets and rights that must be reported include Shares issued upon vesting of the RSUs.

Tax on Financial Transaction (IOF) . Repatriation of funds ( e.g. , sale proceeds) into Brazil and the conversion of USD into BRL associated with such fundtransfers may be subject to the Tax on Financial Transactions. It is the Participant’s responsibility to comply with any applicable Tax on Financial Transactionsarising from his or her participation in the Plan. The Participant should consult with his or her personal tax advisor for additional details.

CANADA

Terms and Conditions

Settlement of RSUs. Notwithstanding any discretion contained in the Plan, the grant of RSUs does not provide any right for the Participant to receive a cashpayment. The RSUs are payable in Shares only.

Termination of Employment or Service . This provision replaces the third sentence of the first paragraph of Section 2 of the Agreement:

For purposes of the RSUs, except as provided in this Section 2, in the event of termination of the Participant's employment or service, the Participant's right to vestin the RSUs under the Plan, if any, will terminate and all unvested RSUs shall be forfeited on the date of termination; provided, however, that the committee of theBoard of Directors of the Company appointed to administer the Plan (the “Committee”) may determine, in its sole discretion, that, if the Participant’s termination isdue to any reason other than total disability or death (whether or not later found to be in invalid or in breach of employment laws where the Participant is providingservices or the terms of the Participant’s employment or service agreement, if any), vesting will cease and all unvested RSUs shall be forfeited as of the date that isthe earlier of: (1) the date the Participant’s employment or service relationship is terminated, (2) the date the Participant receives notice of termination ofemployment or service, or (3) the date the Participant is no longer actively employed by or in the service regardless of any notice period or period of pay in lieu ofsuch notice required under local law (including, but not limited to, statutory law, regulatory law and/or common law).

ThefollowingprovisionswillapplyiftheParticipantisaresidentofQuebec:

French Language Provision . The parties acknowledge that it is their express wish that the Agreement, as well as all documents, notices and legal proceedingsentered into, given or instituted pursuant hereto or relating directly or indirectly hereto, be drawn up in English.

Les parties reconnaissent avoir exigé la rédaction en anglais de la convention, ainsi que de tous documents exécutés, avis donnés et procédures judiciariesintentées,directementouindirectement,relativementàousuiteàlaprésenteconvention.

Data Privacy. This provision supplements Section 2 of Appendix A:

The Participant hereby authorizes the Company and the Company’s representatives to discuss with and obtain all relevant information from all personnel,professional or not, involved in the administration and operation of the Plan. The Participant further authorizes the Company, any parent or subsidiary corporationof the Company and the Committee to disclose and discuss the RSUs with their advisors. The Participant further authorizes the Company and any parent orsubsidiary corporation of the Company to record such information and to keep such information in the Participant’s employee file.

Notifications

Securities Law Information . The Participant will not be permitted to sell or otherwise dispose of the Shares acquired under the Plan within Canada. TheParticipant will be permitted to sell or dispose of any Shares only if such sale or disposal takes place outside of Canada through the facilities of the stock exchangeon which the Shares are traded ( i.e., the New York Stock Exchange).

Foreign Asset/Account Reporting Information . If the total value of the Participant’s foreign property exceeds C$100,000 at any time during the year, theParticipant must report all of his or her foreign property on Form T1135 (Foreign Income Verification Statement) by April 30 of the following year. Foreignproperty includes Shares acquired under the Plan and may include the RSUs. The RSUs must be reported--generally at a nil cost--if the $100,000 cost threshold isexceeded because of other foreign property the Participant holds. If Shares are acquired, their cost generally is the adjusted cost base (“ACB”) of the Shares. TheACB would normally equal the fair market value of the Shares at vesting, but if the Participant owns other shares, this ACB may have to be averaged with theACB of the other shares. The Participant should speak with a personal tax advisor to determine the scope of foreign property that must be considered for purposesof this requirement.

CHILE

Notifications

Securities Law Information. The offer of the RSUs constitutes a private offering in Chile effective as of the Grant Date. The offer of the RSUs is made subject togeneral ruling n° 336 of the Chilean Superintendence of Securities and Insurance (“SVS”). The offer refers to securities not registered at the securities registry orat the foreign securities registry of the SVS, and, therefore, such securities are not subject to oversight of the SVS. Given that the RSUs are not registered in Chile,the Company is not required to provide information about the RSUs or the Shares in Chile. Unless the RSUs and/or the Shares are registered with the SVS, a publicoffering of such securities cannot be made in Chile.

Ley de valoes. LaofertadelasUnidadesdeAccionesRestringidasseconsideraunaofertaprivadainChileefectivaapartirdelaFechadelaConcesión.LaofertadelasUnidadesdeAccionesRestringidassehacesujetaalareglageneral no. 336delaSuperintendenciadeValoresySegurosChilena(“SVS”). LaofertaserefiereavaloresnoinscritosenelregistrodevaloresoenelregistrodevaloresextranjerosdelaSVSy,porlotanto,talesvaloresnoestánsujetosalafiscalizacióndeésta.DadoquelasUnidadesdeAccionesRestringidasnoestánregistradasenChile,noserequierequelaCompañíaproveainformaciónsobrelasUnidadesdeAccionesRestringidasoAccionesBursátilesenChile.SalvoquelasUnidadesdeAccionesRestringidasy/oaccionesesténregistradasconlaSVS,nopuedehacerseunaofertapúblicadetalesvaloresenChile.

Exchange Control Information. The Participant is not required to repatriate funds obtained from the sale of Shares or the receipt of any dividends or DividendEquivalent Payments. However, if the Participant decides to repatriate such funds, the Participant must do so through the Formal Exchange Market if the amount ofthe funds exceeds US$10,000. In such case, the Participant must report the payment to a commercial bank or registered foreign exchange office receiving thefunds.

If the Participant’s aggregate investments held outside of Chile meets or exceeds US$5,000,000 (including the Shares or cash proceeds obtained under the Plan),the Participant must report the investments quarterly to the Central Bank. Annex 3.1 of Chapter XII of the Foreign Exchange Regulations must be used to file thisreport.

Please note that exchange control regulations in Chile are subject to change. The Participant should consult with his or her personal legal advisor regarding anyexchange control obligations that the Participant may have prior to vesting in the RSUs or receiving proceeds from the sale of acquired upon vesting of the RSUs,cash dividends or Dividend Equivalent Payments.

Annual Tax Reporting Obligation. The Chilean Internal Revenue Service (“CIRS”) requires Chilean residents to report the details of their foreign investments onan annual basis. Foreign investments include Shares acquired under the Plan. Further, if the Participant wishes to receive a credit against his or her Chilean incometaxes for any taxes paid abroad, the Participant must also report the payment of taxes abroad to the CIRS. These reports must be submitted electronically throughthe CIRS website at www.sii.cl in accordance with applicable deadlines. In addition, Shares acquired upon settlement of the RSUs must be registered with theCIRS’s Foreign Investment Registry.

CHINA

Terms and Conditions

ThefollowingprovisionsapplytoPeople’sRepublicofChina(“PRC”)nationalsandanyotherindividualswhoaresubjecttoexchangecontrolrequirementsinChina,asdeterminedbytheCompanyinitssolediscretion.

Settlement of Restricted Stock Units and Sale of Shares. The Participant agrees to maintain any Shares the Participant obtains upon vesting in an account withthe designated Plan broker prior to sale. Further, if deemed necessary or advisable by the Company, the Participant agrees to immediately sell all Shares issuedupon vesting of the RSUs or within such period upon termination of the Participant’s status as a service provider as determined by the Company. The Participantagrees that the Company is authorized to instruct its designated broker to assist with the mandatory sale of such Shares (on the Participant’s behalf pursuant to thisauthorization without further consent) and the Participant expressly authorizes the Company’s designated broker to complete the sale of such Shares. TheParticipant agrees to sign any forms and/or consents required by the Company’s broker to effectuate the sale of Shares. The Participant acknowledges that theCompany’s designated broker is under no obligation to arrange for the sale of the Shares at any particular price.

Upon the sale of the Shares, the Company agrees to pay the Participant the cash proceeds from the sale of the Shares, less any brokerage fees or commissions andsubject to any obligation to satisfy Tax-Related Items. The Participant acknowledges that the Participant is not aware of any material nonpublic information withrespect to the Company or any securities of the Company as of the date of the Agreement.

Exchange Control Requirements. The Participant understands and agrees that, pursuant to local exchange control requirements, the Participant will be requiredto immediately repatriate the sale proceeds, and cash dividends paid on such Shares and any Dividend Equivalent Payments to China. The Participant furtherunderstands that, under local law, such repatriation of his or her proceeds may need to be effectuated through a special exchange control account established by theCompany, any parent or subsidiary corporation of the Company, including the Employer, and the Participant hereby consents and agrees that any proceeds may betransferred to such special account prior to being delivered to the Participant.

Proceeds may be paid to the Participant in U.S. dollars or local currency at the Company’s discretion. If the proceeds are paid to the Participant in U.S. dollars, theParticipant will be required to set up a U.S. dollar bank account in China (if he or she has not already done so) and provide the bank account details to theEmployer and/or the Company so that the proceeds may be deposited into this account. If the proceeds are paid to the Participant in local currency, the Company isunder no obligation to secure any particular exchange conversion rate and the Company may face delays in converting the proceeds to local currency due toexchange control restrictions. The Participant further agrees to comply with any other requirements that may be imposed by the Company in the future in order tofacilitate compliance with exchange control requirements in China.

Additional Restrictions . The RSUs will not vest and the Shares will not be issued at vesting unless the Company determines that such vesting and the issuanceand delivery of Shares complies with all relevant provisions of law. Further, the Company is under no obligation to vest the RSUs and/or issue Shares if theCompany’s SAFE approval becomes invalid or ceases to be in effect by the time the Participant vests in the RSUs.

Notifications

Exchange Control Information. Chinese residents may be required to report to the State Administration of Foreign Exchange all details of their foreign financialassets and liabilities, as well as details of any economic transactions conducted with non-Chinese residents.

CZECH REPUBLIC

Notifications

Exchange Control Information. The Czech National Bank may require the Participant to fulfill certain notification duties in relation to the RSUs and the openingand maintenance of a foreign account. However, because exchange control regulations change frequently and without notice, the Participant should consult withhis or her personal legal advisor prior to the vesting of the RSUs and the sale of Shares to ensure compliance with current regulations. It is the Participant’sresponsibility to comply with any applicable Czech exchange control laws.

FRANCE

Terms and Conditions

French RSU Sub-Plan . The RSUs are intended to qualify for the special tax and social security treatment in France applicable to shares granted for noconsideration under Sections L. 225-197-1 to L. 225-197-6 of the French Commercial Code, as amended, and are subject to the provisions below and the Rules ofthe NIKE, Inc. Stock Incentive Plan for Restricted Stock Units Granted to Participants in France (the “French RSU Sub-Plan”), which has been provided to theParticipant and is incorporated herein. The Company does not undertake to maintain the qualified status of the RSUs and the Participant will not be entitled todamages of any nature whatsoever if the RSUs become disqualified. Capitalized terms not defined herein will have the same meanings as set forth in the FrenchRSU Sub-Plan and the Agreement.

Vesting Schedule . This provision supplements Section 1 of the Agreement:

Notwithstanding the vesting schedule set forth in Section 1 of the Agreement, the RSUs will not vest and the underlying Shares will not be delivered to theParticipant prior to the expiration of any specific period calculated from the Grant Date as may be required to comply with the minimum mandatory vesting periodapplicable to French-Qualified RSUs under Section L. 225-197-1 of the French Commercial Code, as amended, or under the relevant sections of the French TaxCode or the French Social Security Code, as amended, to benefit from the special tax and social security treatment in France. The applicable minimum mandatoryvesting period currently is one year from the Grant Date.

Termination Due to Death . This provision supplements Section 2 of the Agreement:

Notwithstanding anything to the contrary in Section 2 of the Agreement or in the Plan, in the case of the Participant’s death, the Shares subject to unvested RSUswill vest only if the Participant’s heir or heirs request the delivery of the Shares subject to the RSUs within a period of six months following the Participant’s death.If a timely request is made, the RSUs will be settled in Shares as soon as practicable following the request. If no such request is made within six months followingthe Participant’s death, the RSUs will be forfeited.

Mandatory Holding Period . Notwithstanding anything to the contrary in the Agreement or in the Plan, any Shares issued to the Participant upon settlement of theRSUs must be held (and cannot be sold or transferred) until the expiration of a period which currently shall not be less than two years from the Grant Date, or suchother period as is required to comply with the minimum mandatory holding period applicable to French-Qualified RSUs under Section L. 225-197-1 of the FrenchCommercial Code, as amended, or under the relevant sections of the French Tax Code or the French Social Security Code, as amended, to benefit from the specialtax and social security treatment in France; provided, however, that this mandatory holding period will not apply in the event the Participant dies or terminates dueto Disability (as defined in the French RSU Sub-Plan). In order to enforce this provision, the Company may, in its discretion, issue appropriate “stop transfer”instructions to its transfer agent or hold the Shares until the expiration of the mandatory holding period set forth above. Such Shares may be held by the Company,a transfer agent designated by the Company or with a broker designated by the Company.

Closed Periods . Notwithstanding the mandatory holding period and even after such holding period has expired, any Shares acquired upon vesting of the RSUsmay not be sold during certain Closed Periods as provided for and defined by Section L. 225-197-1 of the French Commercial Code, as amended, and by theFrench RSU Sub-Plan, for so long as and to the extent that the Closed Periods are applicable to the Shares underlying French-Qualified RSUs granted by theCompany.

Language Consent. By accepting the RSUs, the Participant confirms having read and understood the documents relating to this grant (the Plan, the Agreement andthe Appendices) which were provided in English language. The Participant accepts the terms of those documents accordingly.

En acceptant l’attribution (RSUs), le Participant confirme ainsi avoir reçu lu et compris les documents relatifs à cette attribution (le Plan, le Contrat et lesAnnexes)quiontétécommuniquésenlangueanglaise.LeParticipantacceptelestermesdecesdocumentsenconnaissancedecause.

Notifications

Foreign Asset/Account Reporting Information. French residents are required to report all foreign accounts (whether open, current or closed) to the French taxauthorities when filing their annual tax returns. The Participant should consult his or her personal advisor to ensure compliance with applicable reportingobligations.

GERMANY

Notifications

Exchange Control Information. If the Participant receives cross-border payments in excess of €12,500 in connection with the sale of securities (including Sharesacquired under the Plan) or the receipt of any dividends or Dividend Equivalent Payments, such payment must be reported monthly to the Deutsche Bundesbank(the German Federal Bank). The Participant is responsible for the reporting obligation and should file the report electronically by the fifth day of the monthfollowing the month in which the payment is made. A copy of the report ( Allgemeine Meldeportal Statistik ) can be accessed via the Deutsche Bundesbank’swebsite at www.bundesbank.de and is available in both German and English.

GREECE

There are no country-specific provisions.

HONG KONG

Terms and Conditions

Settlement of RSUs. Notwithstanding any discretion contained in the Plan, the grant of RSUs does not provide any right for the Participant to receive a cashpayment. The RSUs are payable in Shares only.

Sale Restriction. Shares received at vesting are accepted as a personal investment. Notwithstanding anything contrary in the Agreement or the Plan, in the eventthe RSUs vest and Shares are issued to the Participant within six months of the Grant Date, the Participant agrees that the Participant will not offer to the public orotherwise dispose of any Shares acquired prior to the six-month anniversary of the Grant Date.

Notifications

Securities Law Information: Warning:The contents of this document have not been reviewed by any regulatory authority in Hong Kong. The Participant isadvised to exercise caution in relation to the offer. If the Participant is in any doubt about any of the contents of this document, he or she should obtainindependentprofessionaladvice.TheRSUsandSharesacquireduponvestingoftheRSUsdonotconstituteapublicofferingofsecuritiesunderHongKonglawandare available only to employees of the Company, or any parent or subsidiary corporation. The Plan, the Agreement, and other incidental communicationmaterialshavenotbeenpreparedinaccordancewithandarenotintendedtoconstitutea“prospectus”forapublicofferingofsecuritiesundertheapplicablesecuritieslegislationinHongKong.TheRSUsisintendedonlyforthepersonaluseofeacheligibleemployeeoftheEmployer, theCompanyoranyparentorsubsidiarycorporationoftheCompanyandmaynotbedistributedtoanyotherperson.

Nature of Scheme . The Company specifically intends that the Plan will not be an occupational retirement scheme for purposes of the Occupational RetirementSchemes Ordinance.

INDIA

Notifications

Exchange Control Information. Indian residents are required to repatriate to India all proceeds received from the sale of Shares within 90 days of receipt and anydividends or Dividend Equivalent Payments within 180 days of receipt, or within such other period of time as may be required under applicable regulations. TheParticipant must maintain the foreign inward remittance certificate received from the bank where the foreign currency is deposited in the event that the ReserveBank of India or the Company requests proof of repatriation. It is the Participant’s responsibility to comply with applicable exchange control laws in India.

Foreign Asset/Account Reporting Information. The Participant is required to declare any foreign bank accounts and any foreign financial assets (includingShares held outside India) in the Participant’s annual tax return. The Participant is responsible for complying with this reporting obligation and should confer withhis or her personal tax advisor in this regard.

INDONESIA

Notifications

Exchange Control Information. Indonesian residents must provide the Indonesian central bank, Bank Indonesia, with information on foreign exchange activitieson an online monthly report no later than the fifteenth day of the following month.

In addition, if the Participant remits proceeds from the sale of Shares or dividends or Dividend Equivalent Payments into Indonesia, the Indonesian Bank throughwhich the transaction is made will submit a report on the transaction to the Bank of Indonesia for statistical reporting purposes. Although the bank through whichthe transaction is made is required to make the report, the Participant must complete a “Transfer Report Form.” For transactions of US$10,000 or more, adescription of the transaction must be included in the report.

IRELAND

Notifications

Director Notification Obligation . Directors, shadow directors and secretaries of the Company’s Irish parent or subsidiary corporation whose interest in theCompany represents more than 1% of the Company’s voting share capital are subject to certain notification requirements under the Irish Companies Act. Directors,shadow directors and secretaries must notify the Irish parent or subsidiary corporation in writing of their interest in the Company ( e.g., RSUs, Shares, etc.), if theParticipant becomes aware of the event giving rise to the notification requirement, or if the Participant becomes a director or secretary if such an interest exists atthat time. This notification requirement also applies with respect to the interests of a spouse or children under the age of 18 (whose interests will be attributed to thedirector, shadow director or secretary).

ISRAEL

Terms and Conditions

Settlement of RSUs . Due to local requirements, notwithstanding anything to the contrary in the Agreement or the Plan, the Participant will not receive any Sharesupon settlement of the RSUs. Instead, the Participant will receive a cash payment equal to the fair market value of the number of Shares that vested pursuant to theRSUs on the applicable vesting date. The Company reserves the right to provide the Participant with other methods of settlement depending on the development oflocal law.

ITALY

Terms and Conditions

Data Privacy Notice. This provision replaces Section 2 of Appendix A:

The Participant understands that the Company and the Employer as a data processor of the Company may hold certain personal information about theParticipant, including, but not limited to, the Participant’s name, home address, email address and telephone number, date of birth, social insurance, passportor other identification number, salary, nationality, job title, any Shares of stock or directorships held in the Company or any parent or subsidiary corporation,details of all RSUs or any other entitlement to Shares of stock awarded, cancelled, vesting, vested, unvested or outstanding in the Participant’s favor, and thatthe Company and the Employer will process said data and other data lawfully received from third parties (collectively, “Personal Data”) for the exclusivepurpose of managing and administering the Plan and complying with applicable laws, regulations and legislation.

The Participant also understands that providing the Company with Personal Data is mandatory for compliance with laws and is necessary for the performanceof the Plan and that the Participant’s denial to provide Personal Data would make it impossible for the Company to perform its contractual obligations andmay affect the Participant’s ability to participate in the Plan. The Participant understands that Personal Data will not be publicized, but it may be accessible bythe Employer as a data processor of the Company and within the Employer’s organization by its internal and external personnel in charge of processing.Furthermore, Personal Data will be transferred to E*TRADE Corporate Financial Services, Inc. and any of its affiliated companies (“ E*TRADE ”) in whichis assisting the Company with the management and administration of the Plan. The Participant understands that Personal Data may also be transferred to theindependent registered public accounting firm engaged by the Company, and also to the legitimate addressees under applicable laws. The Participant furtherunderstands that the Company and any parent or subsidiary corporation will transfer Personal Data amongst themselves and to E*TRADE

as necessary for the purpose of implementation, administration and management of the Participant’s participation in the Plan. Such recipients may receive,possess, use, retain and transfer Personal Data in electronic or other form, for the purposes of implementing, administering and managing the Participant’sparticipation in the Plan. The Participant understands that these recipients may be acting as controllers, processors or persons in charge of processing, as thecase may be, according to applicable privacy laws, and that they may be located in or outside the European Economic Area, such as in the United States orelsewhere, including countries that do not provide an adequate level of data protection as intended under Italian privacy law.

Should the Company exercise its discretion in suspending all necessary legal obligations connected with the management and administration of the Plan, itwill delete Personal Data as soon as it has accomplished all the necessary legal obligations connected with the management and administration of the Plan.

The Participant understands that Personal Data processing related to the purposes specified above shall take place under automated or non-automatedconditions, anonymously when possible, that comply with the purposes for which Personal Data is collected and with confidentiality and security provisions asset forth by applicable laws and regulations, with specific reference to Legislative Decree no. 196/2003.

The processing activity, including communication, the transfer of Personal Data abroad, including outside of the European Economic Area, as specifiedherein and pursuant to applicable laws and regulations, does not require the Participant’s consent thereto as the processing is necessary to performance of lawand contractual obligations related to implementation, administration and management of the Plan. The Participant understands that, pursuant to Section 7 ofthe Legislative Decree no. 196/2003, he or she has the right at any moment to, including, but not limited to, obtain confirmation that Personal Data exists ornot, access, verify its content, origin and accuracy, delete, update, integrate, correct, block or stop, for legitimate reason, the Personal Data processing. Toexercise privacy rights the Participant should address the Data Controller as defined in the employee privacy policy. Furthermore, the Participant is aware thatPersonal Data will not be used for direct marketing purposes. In addition, Personal Data provided can be reviewed and questions or complaints can beaddressed by contacting the Participant’s human resources department.

Plan Document Acknowledgment. By accepting the RSUs, the Participant acknowledges that he or she has received a copy of the Plan, the Agreement (includingthe Appendices) and has reviewed the Plan and the Agreement in their entirety and fully accepts all provisions thereof. The Participant further acknowledges thathe or she has read and specifically and expressly approves (a) the following provisions of the Agreement: Section 2: Termination of Employment or Service;Section 3: Rights as a Shareholder; Section 4: Clawback; Section 5: Delivery; Section 7: Responsibility for Taxes; Section 10: Additional Company Provisions;and (b) the following provisions of Appendix A: (i) Section 1: Nature of Grant; (ii) Section 3: Language; and (iii) all provisions for Italy in this Appendix.

Notifications

Foreign Asset/Account Reporting Information . If the Participant holds investments abroad or foreign financial assets ( e.g. , cash, Shares, RSUs) that maygenerate income taxable in Italy, the Participant is required to report them on his or her annual tax returns (UNICO Form, RW Schedule) or on a special form if notax return is due, irrespective of their value. The same reporting duties apply to the Participant if the Participant is the beneficial owner of the investments, even ifthe Participant does not directly hold investments abroad or foreign assets.

Foreign Asset Tax Information . The value of the financial assets held outside of Italy by Italian residents is subject to a foreign asset tax. Such tax is currentlylevied at an annual rate of 2 per thousand (0.2%). The taxable amount will be the fair market value of the financial assets ( e.g., Shares) assessed at the end of thecalendar year. No tax payment duties arise if the value of the foreign assets held abroad does not exceed €6,000.

JAPAN

Notifications

Foreign Asset/Account Reporting Information. The Participant is required to report details of any assets (including any Shares acquired under the Plan) heldoutside of Japan as of December 31 each year, to the extent such assets have a total net fair market value exceeding ¥50 million. Such report will be due by March15 of the following year. The Participant is advised to consult with his or her personal tax advisor as to whether the reporting obligation applies and whether theParticipant will be required to report details of any RSUs or Shares he or she holds.

KOREA

Notifications

Exchange Control Information. Korean residents who realize US$500,000 or more from the sale of Shares or the receipt of any dividends or DividendEquivalent Payments in a single transaction before July 18, 2017 are required to repatriate the proceeds to Korea within three years of receipt.

Foreign Asset/Account Reporting Information . Korean residents must declare all foreign financial accounts ( i.e. , non-Korean bank accounts, brokerageaccounts, etc.) to the Korean tax authorities and file a report with respect to such accounts if the value of such accounts exceeds KRW 1 billion (or an equivalentamount in foreign currency) on any month-end during the calendar year.

MALAYSIA

Terms and Conditions

Data Privacy. This provision replaces Section 2 of Appendix A:

The Participant hereby explicitly, voluntarily and unambiguously consentsto the collection, use and transfer, in electronic or other form, of his or herpersonal data as described in this Agreement and any other Planparticipation materials by and among, as applicable, the Employer, theCompany and any parent or affiliate corporation or any third partiesauthorized by same in assisting in the implementation, administration andmanagement of the Participant’s participation in the Plan.

The Participant may have previously provided the Company and theEmployer with, and the Company and the Employer may hold, certainpersonal information about the Participant, including, but not limited to, hisor her name, home address and telephone number, email address, date ofbirth, social insurance, passport or other identification number, salary,nationality, job title, any shares of stock or directorships held in theCompany, the fact and conditions of the Participant’s participation in thePlan, details of all RSUs or any other entitlement to shares of stockawarded, cancelled, exercised, vested, unvested or outstanding in theParticipant’s favor (“Data”), for the exclusive purpose of implementing,administering and managing the Plan.

Peserta dengan ini secara eksplicit, secara sukarela dan tanpa sebarang keraguanmengizinkan pengumpulan, penggunaan dan pemindahan, dalam bentuk elektronikatau lain-lain, data peribadinya seperti yang dinyatakan dalam Perjanjian ini dan apa-apa bahan penyertaan Pelan oleh dan di antara, sebagaimana yang berkenaan,Majikan, Syarikat dan syarikat induk dan perbadanan sekutu atau mana-mana pihakketiga yang diberi kuasa oleh yang sama untuk membantu dalam pelaksanaan,pentadbiran dan pengurusan penyertaan Peserta dalam Pelan tersebut.

Sebelum ini, Peserta mungkin telah membekalkan Syarikat dan Majikan dengan, danSyarikat dan Majikan mungkin memegang, maklumat peribadi tertentutentangPeserta, termasuk, tetapi tidak terhad kepada, namanya, alamat rumah dannombor telefon, alamat emel, tarikh lahir, insurans sosial, nombor pasport ataupengenalan lain, gaji, kewarganegaraan, jawatan, apa-apa syer dalam saham ataujawatan pengarah yang dipegang dalam Syarikat, fakta dan syarat-syarat penyertaanPeserta dalam Pelan tersebut, butir-butir semua Unit Saham Terbatas atau apa-apahak lain untuk syer dalam saham yang dianugerahkan, dibatalkan, dilaksanakan,terletak hak, tidak diletak hak ataupun yang belum diselesaikan bagi faedah Peserta(“Data”), untuk tujuan yang eksklusif bagi melaksanakan, mentadbir danmenguruskan Pelan tersebut.

The Participant also authorizes any transfer of Data, as may be required, toE*TRADE Corporate Financial Services, Inc., or such other stock planservice provider as may be selected by the Company in the future, which isassisting the Company with the implementation, administration andmanagement of the Plan and/or with whom any Shares acquired uponvesting and settlement of the RSUs are deposited. The Participantacknowledges that these recipients may be located in his or her country orelsewhere, and that the recipient’s country (e.g., the United States) mayhave different data privacy laws and protections to the Participant’scountry, which may not give the same level of protection to Data. TheParticipant understands that he or she may request a list with the names andaddresses of any potential recipients of Data by contacting his or her localhuman resources representative. The Participant authorizes the Company,the stock plan service provider and any other possible recipients whichmay assist the Company (presently or in the future) with implementing,administering and managing the Participant’s participation in the Plan toreceive, possess, use, retain and transfer Data, in electronic or other form,for the sole purpose of implementing, administering and managing theParticipant’s participation in the Plan. The Participant understands thatData will be held only as long as is necessary to implement, administer andmanage his or her participation in the Plan. The Participant understandsthat he or she may, at any time, view Data, request additional informationabout the storage and processing of Data, require any necessaryamendments to Data or refuse or withdraw the consents herein, in any case,without cost, by contacting in writing his or her local human resourcesrepresentative, whose contact details are Mari McBurney, 30 Pasir PanjangRd #10-31/32, 117440, Singapore; +65 6216 7812;mari.mcburney@nike.com. Further, the Participant understands that he orshe is providing the consents herein on a purely voluntary basis. If theParticipant does not consent, or if the Participant later seeks to revoke theconsent, his or her employment status or service and career with theEmployer will not be affected; the only consequence of refusing orwithdrawing the consent is that the Company would not be able to grantfuture RSUs or other equity awards to the Participant or administer ormaintain such awards. Therefore, the Participant understands that refusingor withdrawing his or her consent may affect his or her ability toparticipate in the Plan. For more information on the consequences of therefusal to consent or withdrawal of consent, the Participant understandsthat he or she may contact his or her local human resources representative.

The Participant also authorizes any transfer of Data, as may be required, toE*TRADE Corporate Financial Services, Inc., or such other stock plan serviceprovider as may be selected by the Company in the future, which is assisting theCompany with the implementation, administration and management of the Planand/or with whom any Shares acquired upon vesting and settlement of the RSUs aredeposited. The Participant acknowledges that these recipients may be located in hisor her country or elsewhere, and that the recipient’s country (e.g., the United States)may have different data privacy laws and protections to the Participant’s country,which may not give the same level of protection to Data. The Participant understandsthat he or she may request a list with the names and addresses of any potentialrecipients of Data by contacting his or her local human resources representative. TheParticipant authorizes the Company, the stock plan service provider and any otherpossible recipients which may assist the Company (presently or in the future) withimplementing, administering and managing the Participant’s participation in the Planto receive, possess, use, retain and transfer Data, in electronic or other form, for thesole purpose of implementing, administering and managing the Participant’sparticipation in the Plan. The Participant understands that Data will be held only aslong as is necessary to implement, administer and manage his or her participation inthe Plan. The Participant understands that he or she may, at any time, view Data,request additional information about the storage and processing of Data, require anynecessary amendments to Data or refuse or withdraw the consents herein, in anycase, without cost, by contacting in writing his or her local human resourcesrepresentative, whose contact details are Mari McBurney, 30 Pasir Panjang Rd #10-31/32, 117440, Singapore; +65 6216 7812; mari.mcburney@nike.com. Further, theParticipant understands that he or she is providing the consents herein on a purelyvoluntary basis. If the Participant does not consent, or if the Participant later seeks torevoke the consent, his or her employment status or service and career with theEmployer will not be affected; the only consequence of refusing or withdrawing theconsent is that the Company would not be able to grant future RSUs or other equityawards to the Participant or administer or maintain such awards. Therefore, theParticipant understands that refusing or withdrawing his or her consent may affecthis or her ability to participate in the Plan. For more information on theconsequences of the refusal to consent or withdrawal of consent, the Participantunderstands that he or she may contact his or her local human resourcesrepresentative.

Director Notification Obligation. If the Participant is a director of the Company’s Malaysian subsidiary, he or she is subject to certain notification requirementsunder the Malaysian Companies Act. Among these requirements is an obligation to notify the Malaysian subsidiary in writing when the Participant receives ordisposes of an interest ( e.g., RSUs, Shares) in the Company or any related company. Such notifications must be made within 14 days of receiving or disposing ofany interest in the Company or any related company.

MEXICOTerms and Conditions

No Entitlement or Claims for Compensation. The following provision supplements Section 1 of Appendix A:

By accepting the RSUs, the Participant understands and agrees that any modification of the Plan or the Agreement or its termination shall not constitute a changeor impairment of the terms and conditions of employment.

Policy Statement. The invitation the Company is making under the Plan is unilateral and discretionary and, therefore, the Company reserves the absolute right toamend it and discontinue it at any time without any liability.

The Company, with registered offices at One Bowerman Drive, Beaverton OR, 97005, U.S.A., is solely responsible for the administration of the Plan andparticipation in the Plan and, in the Participant’s case, the acquisition of Shares does not, in any way, establish an employment relationship between the Participantand the Company since the Participant is participating in the Plan on a wholly commercial basis, nor does it establish any rights between the Participant and theEmployer.

Plan Document Acknowledgment. By accepting the RSUs, the Participant acknowledges that he or she has received copies of the Plan, has reviewed the Plan andthe Agreement in their entirety and fully understands and accepts all provisions of the Plan and the Agreement.

In addition, by accepting the RSUs, the Participant further acknowledges that he or she has read and specifically and expressly approves the terms and conditionsin Section 1 of Appendix A, in which the following is clearly described and established: (i) participation in the Plan does not constitute an acquired right; (ii) thePlan and participation in the Plan is offered by the Company on a wholly discretionary basis; (iii) participation in the Plan is voluntary; and (iv) the Company andany parent or subsidiary corporation are not responsible for any decrease in the value of the Shares underlying the RSUs.

Finally, the Participant hereby declares that he or she does do not reserve any action or right to bring any claim against the Company for any compensation ordamages as a result of participation in the Plan and therefore grants a full and broad release to the Employer and the Company and any parent or subsidiarycorporation with respect to any claim that may arise under the Plan.

Spanish Translation

Renuncia de Derecho o Demandas para Compensación. EstasdisposicionescomplementanelApartado1enelApéndiceA:

Al aceptar las Unidades de Acciones Restringidas (las “RSUs,” por sus siglas en Inglés), el Participante manifiesta que entiende y está de acuerdo de quecualquiermodificacióndelPlanodelAcuerdoolaterminacióndelosmismosnoconstituyeuncambioodesmejoradelostérminosycondicionesdeempleo.

Declaración de Política. Lainvitación por parte de la Compañíabajo el Planes unilateral y discrecional y, por lo tanto, la Compañíase reservael derechoabsolutodemodificarydiscontinuarelmismoencualquiermomento,sinningunaresponsabilidad.

LaCompañía,conoficinasregistradasubicadasenOneBowermanDrive,BeavertonOR,97005,EE.UU.,eslaúnicaresponsableporlaadministracióndelPlany la participación en el mismo y, en el caso del Participante, la adquisición de Acciones no establece, de forma alguna, una relación de trabajo entre elParticipante y la Compañía, ya que la participación en el Plan por parte del Participante es completamente comercial, así como tampoco establece ningúnderechoentreelParticipanteyelEmpleador.

Reconocimiento del Documento del Plan. AlaceptarlasRSUs,elParticipantereconocequeharecibidocopiasdelPlan,queharevisadoelPlanyelAcuerdoensutotalidadyqueentiendeyaceptatodaslasdisposicionescontenidasenelPlanyenelAcuerdo.

Adicionalmente,alaceptarlasRSUs,elParticipantereconocequehaleídoyqueapruebaespecíficayexpresamentelostérminosycondicionescontenidosenelApartado 1 en el Apéndice A, en la cual se encuentra claramente descrito y establecido lo siguiente: (i) la participación en el Plan no constituye un derechoadquirido; (ii) el Plan y la participación en el mismo es ofrecida por la Compañía de forma enteramente discrecional; (iii) la participación en el Plan esvoluntaria;y(iv)laCompañíaasícomocualquiersociedadcontrolanteocorporaciónsubsidiarianosonresponsablesporcualquierdisminuciónenelvalordelasAccionesenrelaciónconlasRSUs.

Finalmente, el Participante declaraporla presente quenose reservaningunaacciónoderechoparainterponer unademandaencontradela Compañíaporcompensación,dañooperjuicioalgunocomoresultadodelaparticipaciónenelPlany,porlotanto,otorgaelmásampliofiniquitoalEmpleador,asícomoalaCompañíaycualqiuersociedadcontrolanteocorporaciónsubsidiariaconrespectoacualquierdemandaquepudieraoriginarseenvirtuddelPlan.

NETHERLANDS

Terms and Conditions

Labor Law Acknowledgment. By accepting the RSUs, the Participant acknowledges that the RSUs are intended as an incentive for the Participant to remainemployed with the Employer and are not intended as remuneration for labor performed.

PHILIPPINES

Notifications

Securities Law Information. The Participant acknowledges that he or she is permitted to sell Shares acquired under the Plan through the designated Plan brokerappointed by the Company (or such other broker to whom the Participant may transfer the Shares), provided that such sale takes place outside of the Philippinesthrough the facilities of New York Stock Exchange on which the Shares are listed.

POLAND

Notifications

Exchange Control Information. If the Participant holds foreign securities (including Shares) and maintains accounts abroad (including any brokerage account),the Participant may be required to file certain reports with the National Bank of Poland. Specifically, if the value of securities and cash (calculated individually ortogether with all other assets/liabilities) held in such foreign accounts exceeds PLN 7 million, the Participant must file reports on the transactions and balances ofthe accounts on a quarterly basis. Further, any fund transfers in excess of €15,000 (or PLN 15,000 if such transfer of funds is connected with business activity of anentrepreneur) into or out of Poland must be effected through a bank in Poland. Polish residents are required to store all documents related to foreign exchangetransactions for a period of five years.

PORTUGAL

Terms and Conditions

Language Consent. The Participant hereby expressly declares that he or she has full knowledge of the English language and has read, understood and fullyaccepted and agreed with the terms and conditions established in the Plan and the Agreement.

OContratado,pelopresenteinstrumento,declaraexpressamentequetemplenoconhecimentodalínguainglesaequeleu,compreendeuelivrementeaceitoueconcordoucomostermosecondiçõesestabelecidasnoPlanoenoAcordodeAtribuição(Agreementeminglês).

Notifications

Exchange Control Information. If the Participant holds Shares upon vesting of the RSUs, the acquisition of Shares should be reported to the Banco de Portugalfor statistical purposes. If the Shares are deposited with a commercial bank or financial intermediary in Portugal, such bank or financial intermediary will submitthe report on the Participant’s behalf. If the Shares are not deposited with a commercial bank or financial intermediary in Portugal, the Participant is responsible forsubmitting the report to the Banco de Portugal.

RUSSIA

Terms and Conditions

U.S. Transaction and Sale Restrictions. Any Shares issued upon vesting of the RSUs shall be delivered to the Participant through a brokerage account in the U.S.The Participant may hold the Shares in his or her brokerage account in the U.S.; however, in no event will the Shares issued to the Participant and/or sharecertificates or other instruments be delivered to the Participant in Russia. The Participant is not permitted to make any public advertising or announcementsregarding the RSUs or Shares in Russia, or promote these Shares to other Russian legal entities or individuals, and the Participant is not permitted to sell orotherwise dispose of the Shares directly to other Russian legal entities or individuals. The Participant is permitted to sell Shares only on the New York StockExchange and only through a U.S. broker.

Notifications

Securities Law Information. The Appendices, the Agreement, the Plan and all other materials that the Participant may receive regarding participation in the Plando not constitute advertising or an offering of securities in Russia. The issuance of securities

pursuant to the Plan has not and will not be registered in Russia; hence, the securities described in any Plan-related documents may not be used for offering orpublic circulation in Russia.

Exchange Control Information. Under exchange control regulations, within a reasonably short time after sale of the Shares acquired upon vesting of the RSUs orthe receipt of Dividend Equivalent Payments, the Participant is required to repatriate such funds received in connection with the Plan to the Participant’s bankaccount in Russia prior to using those proceeds for any purpose including reinvestment. Such proceeds must be initially credited to the Participant through aforeign currency account at an authorized bank in Russia. After the proceeds are initially received in Russia, they may be further remitted to foreign banks inaccordance with Russian exchange control laws.

However, starting January 1, 2018, cash proceeds from the sale of Shares listed on a foreign exchange on the legally approved list ( e.g. , the New York StockExchange) also can be paid directly to the Participant’s foreign bank account opened with a bank located in Organisation for Economic Cooperation Development(“OECD”) or Financial Action Task Force (“FATF”) countries. Further, the repatriation requirement does not apply to dividends paid on Shares, which can bedeposited directly into a foreign bank or brokerage account opened with a foreign brokerage firm or bank located in OECD or FATF countries.

Labor Law Information. If the Participant continues to hold Shares acquired at settlement of the RSUs after an involuntary termination as a service provider, theParticipant will not be eligible to receive unemployment benefits in Russia.

Anti-Corruption Legislation Information . Individuals holding public office in Russia, as well as their spouses and dependent children, may be prohibited fromopening or maintaining a foreign brokerage or bank account and holding any securities, whether acquired directly or indirectly, in a foreign company (includingShares acquired under the Plan). The Participant is strongly advised to consult with his or her personal legal advisor to determine whether the restriction applies tothe Participant.

SINGAPORE

Notifications

Securities Law Information .The RSUs were granted to the Participant pursuant to the “Qualifying Person” exemption under section 273(1)(f) of the SingaporeSecurities and Futures Act (Chapter 289, 2006 Ed.) (“ SFA ”). The Plan has not been lodged or registered as a prospectus with the Monetary Authority ofSingapore. The Participant should note that his or her RSUs are subject to section 257 of the SFA and the Participant will not be able to make any subsequent salein Singapore, or any offer of such subsequent sale of the Shares underlying the RSUs unless such sale or offer in Singapore is made (i) after six months from theGrant Date, (ii) pursuant to the exemptions under Part XIII Division (1) Subdivision (4) (other than section 280) of the SFA, or (iii) pursuant to, and in accordancewith the condition of, any other applicable provisions of the SFA.

Chief Executive Officer and Director Notification Obligation. If the Participant is the chief executive officer, a director, associate director or shadow director ofa Singapore parent or subsidiary corporation of the Company, the Participant is subject to certain notification requirements under the Singapore Companies Act.Among these requirements is an obligation to notify the Singaporean parent or subsidiary corporation in writing when the Participant receives an interest ( e.g.,RSUs, Shares) in the Company or any related companies. In addition, the Participant must notify the Singapore parent or subsidiary corporation when theParticipant sells Shares of the Company or any related company (including when the Participant sells Shares acquired under the Plan). These notifications must bemade within two business days of acquiring or disposing of any interest in the Company or any related company. In addition, a notification must be made of theParticipant’s interests in the Company or any related company within two business days of becoming the chief executive officer or a director.

SOUTH AFRICA

Terms and Conditions

Securities Law Acknowledgement. In compliance with South African Securities Law, the Participant acknowledges that he or she has been notified that thedocuments listed below are available for review online as follows:

1. a copy of the Company’s most recent Annual Report (Form 10-K), and

2. a copy of the Company’s most recent Plan Prospectus.

The Participant acknowledges that he or she may have copies of the above documents provided to him or her, at no charge, on request on the Company’s website athttp://investors.nike.com.

Responsibility for Taxes. The following provision supplements Section 7 of the Agreement:

By accepting the RSUs, the Participant agrees that, immediately upon vesting of the RSUs, he or she will notify the Employer of the amount of any gain realized. Ifthe Participant fails to advise the Employer of the gain realized upon vesting, he or she may be liable for a fine. The Participant will be solely responsible forpaying any difference between the actual tax liability and the amount withheld.

Notifications

Exchange Control Information. The Participant should consult his or her personal advisor to ensure compliance with applicable exchange control regulations inSouth Africa, as such regulations are subject to frequent change. The Participant is responsible for ensuring compliance with all exchange control laws in SouthAfrica.

SPAIN

Terms and Conditions

Nature of Grant. This provision supplements Section 1 of Appendix A:

In accepting the RSUs, the Participant consents to participate in the Plan and acknowledges that he or she has received a copy of the Plan.

The Participant understands that the Company has unilaterally, gratuitously and discretionally decided to grant stock RSUs under the Plan to individuals who maybe employees of the Company or a parent or subsidiary corporation throughout the world. The decision is a limited decision that is entered into upon the expressassumption and condition that any grant will not economically or otherwise bind the Company, the Employer, or any parent or subsidiary corporation.Consequently, the Participant understands that the RSUs are granted on the assumption and condition that the RSUs and any Shares acquired upon vesting of theRSUs are not part of any employment contract (either with the Company, the Employer, or any parent or subsidiary corporation) and shall not be considered amandatory benefit, salary for any purposes (including severance compensation) or any other right whatsoever. Further, the Participant understands and freelyaccepts that there is no guarantee that any benefit whatsoever shall arise from any gratuitous and discretionary grant since the future value of the RSUs and theunderlying Shares is unknown and unpredictable. In addition, the Participant understands that the RSUs would not be granted to the Participant but for theassumptions and conditions referred to herein; thus, the Participant acknowledges and freely accepts that should any or all of the assumptions be mistaken orshould any of the conditions not be met for any reason, then the grant of the RSUs shall be null and void.

The RSUs are a conditional right to Shares and can be forfeited in the case of, or affected by, the Participant’s termination of service or employment. This will bethe case, for example, even if (1) the Participant is considered to be unfairly dismissed without good cause; (2) the Participant is dismissed for disciplinary orobjective reasons or due to a collective dismissal; (3) the Participant terminates employment or service due to a change of work location, duties or any otheremployment or contractual condition; (4) the Participant terminates employment or service due to unilateral breach of contract of the Company, the Employer, orany parent or subsidiary corporation; or (5) the Participant’s employment or service terminates for any other reason whatsoever, except for reasons specified in theAgreement. Consequently, upon termination of the Participant’s employment or service for any of the reasons set forth above, the Participant may automaticallylose any rights to the unvested RSUs granted to him or her as of the date of the Participant’s termination of employment, as described in the Plan and theAgreement.

Notifications

Exchange Control Information. The Participant must declare the acquisition of Shares to the DirecciónGeneraldeComercialeInversiones(the “DGCI”) of theMinisteriodeEconomiafor statistical purposes. The Participant must also declare ownership of any Shares by filing a D-6 form with the DGCI each January whilethe Shares are owned. In addition, if the Participant wishes to import the ownership title of any Shares ( i.e.,share certificates) into Spain, he or she must declarethe importation of such securities to the DGCI.

Further, the Participant is required to declare electronically to the Bank of Spain any securities accounts (including brokerage accounts held abroad), as well as theShares held in such accounts if the value of the transactions during the prior tax year or the balances in such accounts as of December 31 of the prior tax yearexceed €1,000,000.

Securities Law Information. The grant of RSUs and the Shares issued pursuant to the vesting of the RSUs are considered a private placement outside of the scopeof Spanish laws on public offerings and issuances of securities.

Foreign Asset/Account Reporting Information. To the extent that the Participant holds Shares and/or has bank accounts outside Spain with a value in excess of€50,000 (for each type of asset) as of December 31, the Participant will be required to report information on such assets on his or her tax return (tax form 720) forsuch year. After such Shares and/or accounts are initially reported, the reporting obligation will apply for subsequent years only if the value of any previously-reported Shares or accounts increases by more than €20,000.

SRI LANKA

Terms and Conditions

Settlement of RSUs . Due to local regulatory requirements, notwithstanding anything to the contrary in the Agreement or the Plan, the Participant will not receiveany Shares upon settlement of the RSUs. Instead, the Participant will receive a cash payment equal to the fair market value of the number of Shares that vestedpursuant to the RSUs on the applicable vesting date. The Company reserves the right to provide the Participant with other methods of settlement depending on thedevelopment of local law.

SWEDEN

There are no country-specific provisions.

SWITZERLAND

Notifications

Securities Law Information. The grant of the RSUs is considered a private offering in Switzerland and is, therefore, not subject to registration in Switzerland.Neither this document nor any other material related to the RSUs constitutes a prospectus as such term is understood pursuant to Article 652a of the Swiss Code ofObligations, and neither this document nor any other materials related to the RSUs may be publicly distributed or otherwise made publicly available inSwitzerland. Neither this document nor any other offering or marketing material relating to the RSUs has been or will be filed with, approved, or supervised by anySwiss regulatory authority (in particular, the Swiss Financial Supervisory Authority (FINMA)).

TAIWAN

Terms and Conditions

Data Privacy . The following provisions supplement Section 2 of Appendix A:

The Participant hereby acknowledges that he or she has read and understood the terms regarding collection, processing and transfer of Data contained in thisAppendix and by participating in the Plan, the Participant agree to such terms. In this regard, upon request of the Company or the Employer, the Participant agreesto provide an executed data privacy consent form to the Employer or the Company (or any other agreements or consents that may be required by the Employer orthe Company) that the Company and/or the Employer may deem necessary to obtain under the data privacy laws in the Participant’s country, either now or in thefuture. The Participant understands he or she will not be able to participate in the Plan if the Participant fails to execute any such consent or agreement.

Notifications

Securities Law Information. The RSUs and the underlying Shares are available only for certain employees of the Company, the Employer and other parent orsubsidiary corporations. It is not a public offer of securities by a Taiwanese company. Therefore, it is exempt from registration in Taiwan.

Exchange Control Information. The Participant may acquire and remit foreign currency (including proceeds from the sale of Shares and the receipt ofany dividends or Dividend Equivalent Payments) into Taiwan up to US$5,000,000 per year. If the transaction amount is TWD500,000 or more in a singletransaction, the Participant must submit a foreign exchange transaction form and also provide supporting documentation to the satisfaction of the handling bank.

If the transaction amount is US$500,000 or more, the Participant may be required to provide additional supporting documentation to the satisfaction of thebank. The Participant should consult his or her personal advisor to ensure compliance with applicable exchange control laws in Taiwan.

THAILANDNotifications

Exchange Control Information. When the Participant sells Shares issued upon vesting of the RSUs or receives dividends or Dividend Equivalent Payments, theParticipant must repatriate all cash proceeds to Thailand and then convert such proceeds to Thai Baht within 360 days of repatriation. If the amount of theParticipant’s proceeds is US$50,000 or more, the Participant must specifically report the inward remittance to the Bank of Thailand on a foreign exchangetransaction form. If the Participant fails to comply with these obligations, the Participant may be subject to penalties assessed by the Bank of Thailand.

The Participant should consult his or her personal advisor prior to taking any action with respect to remittance of cash proceeds into Thailand. The Participant isresponsible for ensuring compliance with all exchange control laws in Thailand.

TURKEY

Notifications

Securities Law Information. By accepting the RSUs, the Participant understands and agrees that he or she is not permitted to sell any Shares acquired under thePlan in Turkey. The Shares are currently traded on the New York Stock Exchange, which is located outside of Turkey, under the ticker symbol “NKE” and theShares may be sold through this exchange.

Exchange Control Information. The Participant likely will be required to engage a Turkish financial intermediary to assist with the sale of Shares acquired underthe Plan. While the Participant should not need to engage a Turkish financial intermediary with respect to the acquisition of such Shares (as no consideration ispaid), this is less certain. As the Participant is solely responsible for complying with the financial intermediary requirements and because the application of therequirements to participation in the Plan is uncertain, the Participant should consult his or her personal legal advisor prior to the vesting of the RSUs or any sale ofShares to ensure compliance.

UNITED ARAB EMIRATES

Notifications

Securities Law Information . The offer of RSUs under the Plan is made only to certain employees who meet the eligibility requirements in the Plan, andconstitutes an “exempt personal offer” of equity incentives to employees in the United Arab Emirates. The Agreement, the Plan, and other incidentalcommunication materials are intended for distribution only to employees and must not be delivered to, or relied on, by any other person.

The Emirates Securities and Commodities Authority and/or the Central Bank have no responsibility for reviewing or verifying any documents in connection withthis statement. The Ministry of Economy, the Dubai Department of Economic Development, the Emirates Securities and Commodities Authority, Central Bank andthe Dubai Financial Securities Authority, depending on the employee’s location in the United Arab Emirates, have not approved this statement, the Plan, theAgreement or any other documents the Participant may receive in connection with the RSUs or taken steps to verify the information set out therein, and have noresponsibility for such documents.

If the Participant does not understand the contents of the Agreement or the Plan, the Participant should consult his or her personal financial advisor.

UNITED KINGDOM

Terms and Conditions

Settlement of RSUs. Notwithstanding any discretion contained in the Plan, the grant of RSUs does not provide any right for the Participant to receive a cashpayment. The RSUs are payable in Shares only.

Responsibility for Taxes. The following provision supplements Section 7 of the Agreement:

Without limitation to Section 7 of the Agreement, the Participant agrees that the Participant is liable for all Tax-Related Items and hereby covenants to pay all suchTax-Related Items as and when requested by the Company or the Employer or by Her Majesty’s Revenue and Customs (“HMRC”) (or any other tax authority orany other relevant authority). The Participant also agrees to

indemnify and keep indemnified the Company and the Employer against any Tax-Related Items that they are required to pay or withhold or have paid or will payto HMRC (or any other tax authority or any other relevant authority) on the Participant’s behalf.

Notwithstanding the foregoing, if the Participant is a director or executive officer of the Company (within the meaning of Section 13(k) of the Exchange Act), theParticipant may not be able to indemnify the Company or the Employer for the amount of any income tax not collected from or paid by the Participant, as it may beconsidered a loan. In this case, the amount of any uncollected income tax may constitute a benefit to the Participant on which additional income tax and employeenational insurance contributions (“ NICs ”) may be payable. The Participant agrees to report and pay any income tax due on this additional benefit directly toHMRC under the self-assessment regime and to pay the Employer for the value of the employee NICs due on this additional benefit, which the Company or theEmployer may recover from the Participant by any of the means referred to in Section 7 of the Agreement.

VIETNAM

Terms and Conditions

Settlement of RSUs . Due to local regulatory requirements, notwithstanding anything to the contrary in the Agreement or the Plan, the Participant will not receiveany Shares upon settlement of the RSUs. Instead, the Participant will receive through local payroll a cash payment equal to the fair market value of the number ofShares that vested pursuant to the RSUs on the applicable vesting date. The Company reserves the right to provide the Participant with other methods of settlementdepending on the development of local law.

Exhibit 31.1

Certification of Chief Executive OfficerPursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Mark G. Parker, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarter ended February 28, 2018 of NIKE, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make thestatements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects thefinancial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined inExchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for theregistrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, toensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularlyduring the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under oursupervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about theeffectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recentfiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, theregistrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to theregistrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonablylikely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internalcontrol over financial reporting.

Dated: April 5, 2018 /s/ Mark G. Parker Mark G. Parker Chief Executive Officer

Exhibit 31.2

Certification of Chief Financial OfficerPursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Andrew Campion, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarter ended February 28, 2018 of NIKE, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make thestatements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects thefinancial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined inExchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for theregistrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, toensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularlyduring the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under oursupervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about theeffectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recentfiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, theregistrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to theregistrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonablylikely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internalcontrol over financial reporting.

Dated: April 5, 2018 /s/ Andrew Campion Andrew Campion Chief Financial Officer

Exhibit 32

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the following certifications are being made toaccompany the Registrant’s quarterly report on Form 10-Q for the fiscal quarter ended February 28, 2018 .

Certification of Chief Executive Officer

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of NIKE, Inc. (the“Company”) hereby certifies, to such officer’s knowledge, that:

(i) the Quarterly Report on Form 10-Q of the Company for the fiscal quarter ended February 28, 2018 (the “Report”) fully complies with the requirements ofSection 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: April 5, 2018 /s/ Mark G. Parker Mark G. Parker Chief Executive Officer

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the following certifications are being made toaccompany the Registrant’s quarterly report on Form 10-Q for the fiscal quarter ended February 28, 2018 .

Certification of Chief Financial Officer

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of NIKE, Inc. (the“Company”) hereby certifies, to such officer’s knowledge, that:

(i) the Quarterly Report on Form 10-Q of the Company for the fiscal quarter ended February 28, 2018 (the “Report”) fully complies with the requirements ofSection 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: April 5, 2018 /s/ Andrew Campion Andrew Campion Chief Financial Officer