Using the information in the balance sheet for NIKE, Ince as of May 31, 2017 and the accompanying footnote provided below, answer the following questions.

1. Why did nike have a decrease from May 31, 2016 to May 31, 2017 in the "Current portion of long-term debt" reported on the balance sheet. Provide an explanation for the decrease Hint: see the note.

2. WAs Nike's long-term bonds payable maturing November 1, 2026 issued at a premium or discount?

3. As of May 31, 207, approximately what percentage of Nike's Long-term debt will be coming due over its next 5 fiscal year?

4. What is the fair value of Nike's long-term debt at May 31, 2017? Why is it different than the book value and what does this imply about the effective interest rate on the loans at the time of issuance relative to interest rates as of May 31, 2017? Note that the fair value is the future cash flows discounted at the current market rate of interest (in this case the market rate on May 31, 2017), while the book value is the future cash flows discounted at the rate of interest at the time the bonds were issued. Assume that NIKE's credit risk has been stable over time.

NIKE, Inc. Consolidated Balance Sheets May 31 2017 2016 ASSETS Current assets: Cash and equivalents Short-term investments Accounts receivable, net 3,138 2,319 3,241 4.838 3,808 $ 2,371 3,677 5,055 Prepaid Total current assets ses and other current assets Property, plant and equipment, net ldentifiable intangible assets, net Goodwill Deferred income taxes and other assets 16,061 3,989 283 139 15,025 3,520 281 131 259 TOTAL ASSETS LIABILITIES AND SHAREHOLDERS'EQUITY Current liabilities: 21,379 Current portion of long-term debt Notes payable Accounts payable Accrued liabil ties 325 2,048 3,011 84 5,474 3,471 1,907 2.191 3,037 Total current liabilities 5,358 1,993 1,770 Long-term debt Deferred income taxes and other labilities Commitments and contingencies Redeemable preferred stock Shareholders' equity Common stock at stated value: Class A convertible- 329 and 353 shares outstanding Class B-1,314 and 1,329 shares outstanding Capital in excess of stated value Accumulated other comprehensive (loss) income Retained earnin 8,638 (213) 7,786 318 12.258 21379 Total shareholders TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 12,407 259 The accompanying Notes to the Cansolidated Fnancial Stataments are an integral part of this statement NOTE 8 - Long-Term Debt Long-term debt, net of unamortized premiums, discounts and debt issuance costs, comprises the following: Book Value Outstanding as of May 31 Original Interest Princi Interest Payments and Yen 2017 2016 Corporate Bond Payables.-0j2) $ 500 $1,000 $ 500 $1,000 $ 500 2.25% 2.38% 3.63% 3.88% 3.38% Semi-Annually Semi-Annually Semi-Annually Semi-Annually Semi-Annually $ 497 993 495 981 490 $ 497 May 1, 2023 November 1, 2026 May 1, 2043 November 1, 2045 November 1, 2046 494 Promissory Notes: April 1, 2017 $ 40 6.20% Monthly 38 Japanese Yen Notes:y August 20, 2001 through November 20, 2020 9,000 Y 4,000 2.60% 2.00% Quarterly 18 20, 2001 through November 20, 2020 Total Less current maturities TOTAL LONG-TERM DEBT 2,037 S 3,471 1,993 (T) These sanvor unsecured obligations rank equaly with the Company's othar unsecured and unsuborainated indebtedness. 2) The bands are redeamable at the Company's option up to three months prior to the scheduled maturity date for the bonds maturing in 2023 and 2026, and up to six months prior to the scheduled maturity date forthe bonds maturing in 2043 2 45 and 2046 ataprce equal to the greater of 100% of the aggregate prncpal amount of the notes to be redeemed or the sum af the present vaues of the ramaining schedwed payments, pus in each casa, accrued and unpaid interest. Wthin thee and sx months to scheduwed maturity, respactivay, the bands also feature a parca provison, which alows forthe bonds to be redeemed at a prce equal to 100% of the aggregate pr napa amount ofthe notes beng redeemed, plus accrued and unpaidinterest. (3) NIKE Logistics YKassumed a total of Y13.0 bilon in loans as part of its agreement to purchase a distribution center in Japan, which sarves as colateral for the loans. These loasmturein equal quarterly instalmants during the peniod August 20, 2007 through Novembar 20, 2020. The scheduied maturity of Long-term debt in each of the years ending instruments or quoted prices for identical instruments in inactive markets May 31, 2018 through 2022 are $6 millon, $6 million, $6 milion, $3 millon Level 2). The fair value of the Company's Long-term debt, including the current portion, was approximately $3,401 milion at May 31, 2017 and and $0 million, respectively, at face value. $2,125 milion at May 31,2016. The Company's Long-tem debt is recorded at adjusted cost, net of unamortized premiums, discounts and debt issuance costs. The fair value of Long-term debt is estimated based upon quoted prices for similar NIKE, Inc. Consolidated Balance Sheets May 31 2017 2016 ASSETS Current assets: Cash and equivalents Short-term investments Accounts receivable, net 3,138 2,319 3,241 4.838 3,808 $ 2,371 3,677 5,055 Prepaid Total current assets ses and other current assets Property, plant and equipment, net ldentifiable intangible assets, net Goodwill Deferred income taxes and other assets 16,061 3,989 283 139 15,025 3,520 281 131 259 TOTAL ASSETS LIABILITIES AND SHAREHOLDERS'EQUITY Current liabilities: 21,379 Current portion of long-term debt Notes payable Accounts payable Accrued liabil ties 325 2,048 3,011 84 5,474 3,471 1,907 2.191 3,037 Total current liabilities 5,358 1,993 1,770 Long-term debt Deferred income taxes and other labilities Commitments and contingencies Redeemable preferred stock Shareholders' equity Common stock at stated value: Class A convertible- 329 and 353 shares outstanding Class B-1,314 and 1,329 shares outstanding Capital in excess of stated value Accumulated other comprehensive (loss) income Retained earnin 8,638 (213) 7,786 318 12.258 21379 Total shareholders TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 12,407 259 The accompanying Notes to the Cansolidated Fnancial Stataments are an integral part of this statement NOTE 8 - Long-Term Debt Long-term debt, net of unamortized premiums, discounts and debt issuance costs, comprises the following: Book Value Outstanding as of May 31 Original Interest Princi Interest Payments and Yen 2017 2016 Corporate Bond Payables.-0j2) $ 500 $1,000 $ 500 $1,000 $ 500 2.25% 2.38% 3.63% 3.88% 3.38% Semi-Annually Semi-Annually Semi-Annually Semi-Annually Semi-Annually $ 497 993 495 981 490 $ 497 May 1, 2023 November 1, 2026 May 1, 2043 November 1, 2045 November 1, 2046 494 Promissory Notes: April 1, 2017 $ 40 6.20% Monthly 38 Japanese Yen Notes:y August 20, 2001 through November 20, 2020 9,000 Y 4,000 2.60% 2.00% Quarterly 18 20, 2001 through November 20, 2020 Total Less current maturities TOTAL LONG-TERM DEBT 2,037 S 3,471 1,993 (T) These sanvor unsecured obligations rank equaly with the Company's othar unsecured and unsuborainated indebtedness. 2) The bands are redeamable at the Company's option up to three months prior to the scheduled maturity date for the bonds maturing in 2023 and 2026, and up to six months prior to the scheduled maturity date forthe bonds maturing in 2043 2 45 and 2046 ataprce equal to the greater of 100% of the aggregate prncpal amount of the notes to be redeemed or the sum af the present vaues of the ramaining schedwed payments, pus in each casa, accrued and unpaid interest. Wthin thee and sx months to scheduwed maturity, respactivay, the bands also feature a parca provison, which alows forthe bonds to be redeemed at a prce equal to 100% of the aggregate pr napa amount ofthe notes beng redeemed, plus accrued and unpaidinterest. (3) NIKE Logistics YKassumed a total of Y13.0 bilon in loans as part of its agreement to purchase a distribution center in Japan, which sarves as colateral for the loans. These loasmturein equal quarterly instalmants during the peniod August 20, 2007 through Novembar 20, 2020. The scheduied maturity of Long-term debt in each of the years ending instruments or quoted prices for identical instruments in inactive markets May 31, 2018 through 2022 are $6 millon, $6 million, $6 milion, $3 millon Level 2). The fair value of the Company's Long-term debt, including the current portion, was approximately $3,401 milion at May 31, 2017 and and $0 million, respectively, at face value. $2,125 milion at May 31,2016. The Company's Long-tem debt is recorded at adjusted cost, net of unamortized premiums, discounts and debt issuance costs. The fair value of Long-term debt is estimated based upon quoted prices for similar