Note 8 — Long-Term Debt

Long-term debt, net of unamortized premiums and discounts and swap fair value adjustments, is comprised of the following:


	May 31,
	2011		2010
	(In millions)
5.66% Corporate bond, payable July 23, 2012	$	26	$	27
5.40% Corporate bond, payable August 7, 2012		16		16
4.70% Corporate bond, payable October 1, 2013		50		50
5.15% Corporate bond, payable October 15, 2015		114		112
4.30% Japanese Yen note, payable June 26, 2011		130		116
1.52% Japanese Yen note, payable February 14, 2012		62		55
2.60% Japanese Yen note, maturing August 20, 2001 through November 20, 2020		54		53
2.00% Japanese Yen note, maturing August 20, 2001 through November 20, 2020		24		24

Total		476		453
Less current maturities		200		7

	$	276	$	446

The scheduled maturity of long-term debt in each of the years ending May 31, 2012 through 2016 are $200 million, $48 million, $58 million, $8 million and $109 million, at face value, respectively.

The Company’s long-term debt is recorded at adjusted cost, net of amortized premiums and discounts and interest rate swap fair value adjustments. The fair value of long-term debt is estimated based upon quoted prices for similar instruments. The fair value of the Company’s long-term debt, including the current portion, was approximately $482 million at May 31, 2011 and $453 million at May 31, 2010.

In fiscal years 2003 and 2004, the Company issued a total of $240 million in medium-term notes of which $190 million, at face value, were outstanding at May 31, 2011. The outstanding notes have coupon rates that range from 4.70% to 5.66% and maturity dates ranging from July 2012 to October 2015. For each of these notes, except the $50 million note maturing in October 2013, the Company has entered into interest rate swap agreements whereby the Company receives fixed interest payments at the same rate as the notes and pays variable interest payments based on the six-month LIBOR plus a spread. Each swap has the same notional amount and maturity date as the corresponding note. At May 31, 2011, the interest rates payable on these swap agreements ranged from approximately 0.3% to 1.0%.

In June 1996, one of the Company’s wholly owned Japanese subsidiaries, NIKE Logistics YK, borrowed ¥10.5 billion (approximately $130 million as of May 31, 2011) in a private placement with a maturity of June 26, 2011. Interest is paid semi-annually. The agreement provides for early retirement of the borrowing.

In July 1999, NIKE Logistics YK assumed a total of ¥13.0 billion in loans as part of its agreement to purchase a distribution center in Japan, which serves as collateral for the loans. These loans mature in equal quarterly installments during the period August 20, 2001 through November 20, 2020. Interest is also paid quarterly. As of May 31, 2011, ¥6.3 billion (approximately $78 million) in loans remain outstanding.

In February 2007, NIKE Logistics YK entered into a ¥5.0 billion (approximately $62 million as of May 31, 2011) term loan that replaced certain intercompany borrowings and matures on February 14, 2012. The interest rate on the loan is approximately 1.5% and interest is paid semi-annually.