NKE · 10-K · 2026A · Full report

IEEPA Tariff Recovery

NIKE, Inc. · 2026-07-15 · Importance 78 · Surprise 100 · In source text

On February 20, 2026 the U.S. Supreme Court ruled that tariffs imposed under the IEEPA on imported goods were unauthorized; NIKE recognized a probable recovery and recorded a $986 million benefit in Cost of sales during the fourth quarter of fiscal 2026. The $986 million benefit was allocated $965 million to North America and $21 million to Converse; as of May 31, 2026 the Company had received $302 million and recorded $684 million of outstanding IEEPA tariff receivables, and subsequently received substantially all of the remaining receivable. NIKE will continue to monitor U.S. and other countries' import/export policies and developments related to tariff refunds and litigation that could affect financial position, results of operations and cash flows.

Key facts

• Subsequent to May 31, 2026, we received substantially all of the remaining IEEPA tariff receivable. source
• The increase in Accounts receivable in fiscal 2026 was primarily due to the outstanding IEEPA tariff receivable, higher wholesale revenues and the timing of receipts in the normal course of business. source
• During the fourth quarter of fiscal 2026 we recognized a benefit of $986 million in Cost of sales for recovery of IEEPA tariffs paid. source
• As of May 31, 2026, we received $302 million and recorded $684 million of outstanding IEEPA tariff receivables reflected within Accounts receivable, net. source
• On February 20, 2026, the U.S. Supreme Court ruled that U.S. tariffs imposed under IEEPA on goods imported into the U.S. were unauthorized. source
• $965 million of the IEEPA tariff benefit was classified within North America and $21 million was classified within Converse. source

Impact estimates