NKE · 10-K · 2026A · Full report

Provision for Income Taxes

NIKE, Inc. · 2026-07-15 · Importance 10 · Surprise 6

NIKE is subject to U.S., state and multiple foreign tax jurisdictions and estimates its annual effective tax rate on an interim basis to determine year-to-date income tax expense. The company refines its estimated annual effective tax rate as actual events and jurisdictional earnings develop and adjusts the tax provision in the quarter those estimate changes occur. On a quarterly basis NIKE evaluates uncertain tax positions and recognizes benefits or additional charges when assessment changes, and records interest and penalties related to income tax matters in Income tax expense. The cash flow discussion noted a decrease in Income taxes payable in fiscal 2026 primarily due to U.S. federal income tax payments.

Key facts

• Consolidated effective tax expense for fiscal 2026 was $1,000 million. source
• NIKE has long-term obligations for uncertain tax positions and various post-retirement benefits for which it is not able to reasonably estimate when cash payments will occur. source
• The decrease in Income taxes payable in fiscal 2026 was primarily due to U.S. federal income tax payments. source