NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 47: 
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|  2 | NIKE, Inc. Consolidated Statements of Cash Flows |


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|  2 |                                                                                                            | Year Ended May 31, |       |      |        |      |       |        |    |    |       |
|  3 | (In millions)                                                                                              | 2018               |       | 2017 |        | 2016 |       |        |    |    |       |
|  4 | Cash provided by operations:                                                                               |                    |       |      |        |      |       |        |    |    |       |
|  5 | Net income                                                                                                 | $                  | 1,933 |      |        | $    | 4,240 |        |    | $  | 3,760 |
|  6 | Adjustments to reconcile net income to net cash provided by operations:                                    |                    |       |      |        |      |       |        |    |    |       |
|  7 | Depreciation                                                                                               | 747                |       |      | 706    |      |       | 649    |    |    |       |
|  8 | Deferred income taxes                                                                                      | 647                |       |      | (273   | )    |       | (80    | )  |    |       |
|  9 | Stock-based compensation                                                                                   | 218                |       |      | 215    |      |       | 236    |    |    |       |
| 10 | Amortization and other                                                                                     | 27                 |       |      | 10     |      |       | 13     |    |    |       |
| 11 | Net foreign currency adjustments                                                                           | (99                | )     |      | (117   | )    |       | 98     |    |    |       |
| 12 | Changes in certain working capital components and other assets and liabilities:                            |                    |       |      |        |      |       |        |    |    |       |
| 13 | Decrease (increase) in accounts receivable                                                                 | 187                |       |      | (426   | )    |       | 60     |    |    |       |
| 14 | (Increase) in inventories                                                                                  | (255               | )     |      | (231   | )    |       | (590   | )  |    |       |
| 15 | Decrease (increase) in prepaid expenses and other current and non-current assets                           | 35                 |       |      | (120   | )    |       | (161   | )  |    |       |
| 16 | Increase (decrease) in accounts payable, accrued liabilities and other current and non-current liabilities | 1,515              |       |      | (158   | )    |       | (586   | )  |    |       |
| 17 | Cash provided by operations                                                                                | 4,955              |       |      | 3,846  |      |       | 3,399  |    |    |       |
| 18 | Cash provided (used) by investing activities:                                                              |                    |       |      |        |      |       |        |    |    |       |
| 19 | Purchases of short-term investments                                                                        | (4,783             | )     |      | (5,928 | )    |       | (5,367 | )  |    |       |
| 20 | Maturities of short-term investments                                                                       | 3,613              |       |      | 3,623  |      |       | 2,924  |    |    |       |
| 21 | Sales of short-term investments                                                                            | 2,496              |       |      | 2,423  |      |       | 2,386  |    |    |       |
| 22 | Investments in reverse repurchase agreements                                                               | -                  |       |      | -      |      |       | 150    |    |    |       |
| 23 | Additions to property, plant and equipment                                                                 | (1,028             | )     |      | (1,105 | )    |       | (1,143 | )  |    |       |
| 24 | Disposals of property, plant and equipment                                                                 | 3                  |       |      | 13     |      |       | 10     |    |    |       |
| 25 | Other investing activities                                                                                 | (25                | )     |      | (34    | )    |       | 6      |    |    |       |
| 26 | Cash provided (used) by investing activities                                                               | 276                |       |      | (1,008 | )    |       | (1,034 | )  |    |       |
| 27 | Cash used by financing activities:                                                                         |                    |       |      |        |      |       |        |    |    |       |
| 28 | Net proceeds from long-term debt issuance                                                                  | -                  |       |      | 1,482  |      |       | 981    |    |    |       |
| 29 | Long-term debt payments, including current portion                                                         | (6                 | )     |      | (44    | )    |       | (106   | )  |    |       |
| 30 | Increase (decrease) in notes payable                                                                       | 13                 |       |      | 327    |      |       | (67    | )  |    |       |
| 31 | Payments on capital lease and other financing obligations                                                  | (23                | )     |      | (17    | )    |       | (7     | )  |    |       |
| 32 | Proceeds from exercise of stock options and other stock issuances                                          | 733                |       |      | 489    |      |       | 507    |    |    |       |
| 33 | Repurchase of common stock                                                                                 | (4,254             | )     |      | (3,223 | )    |       | (3,238 | )  |    |       |
| 34 | Dividends - common and preferred                                                                           | (1,243             | )     |      | (1,133 | )    |       | (1,022 | )  |    |       |
| 35 | Tax payments for net share settlement of equity awards                                                     | (55                | )     |      | (29    | )    |       | (22    | )  |    |       |
| 36 | Cash used by financing activities                                                                          | (4,835             | )     |      | (2,148 | )    |       | (2,974 | )  |    |       |
| 37 | Effect of exchange rate changes on cash and equivalents                                                    | 45                 |       |      | (20    | )    |       | (105   | )  |    |       |
| 38 | Net increase (decrease) in cash and equivalents                                                            | 441                |       |      | 670    |      |       | (714   | )  |    |       |
| 39 | Cash and equivalents, beginning of year                                                                    | 3,808              |       |      | 3,138  |      |       | 3,852  |    |    |       |
| 40 | CASH AND EQUIVALENTS, END OF YEAR                                                                          | $                  | 4,249 |      |        | $    | 3,808 |        |    | $  | 3,138 |
| 41 | Supplemental disclosure of cash flow information:                                                          |                    |       |      |        |      |       |        |    |    |       |
| 42 | Cash paid during the year for:                                                                             |                    |       |      |        |      |       |        |    |    |       |
| 43 | Interest, net of capitalized interest                                                                      | $                  | 125   |      |        | $    | 98    |        |    | $  | 70    |
| 44 | Income taxes                                                                                               | 529                |       |      | 703    |      |       | 748    |    |    |       |
| 45 | Non-cash additions to property, plant and equipment                                                        | 294                |       |      | 266    |      |       | 252    |    |    |       |
| 46 | Dividends declared and not paid                                                                            | 320                |       |      | 300    |      |       | 271    |    |    |       |

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

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Question: What is Nike’s Free Cash Flow (FCF) for 2018, and how does it reflect the company's financial flexibility?
Answer: Free Cash Flow = Cash from Operating Activities - Capital Expenditures

Data from 2018 Financial Statements:
Cash from Operating Activities: $4,955 million
Capital Expenditures (CapEx): $1,028 million
Calculation:
FCF = $4,955 - $1,028 = $3,927 million

This figure reflects Nike’s ability to generate cash after covering operational and capital investment needs, showcasing strong financial flexibility​.