NIKE INC 10-K form for the fiscal year ended 2018-05-31, page 44: 
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|  2 | NIKE, Inc. Consolidated Statements of Income |


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|  2 |                                          | Year Ended May 31, |        |      |        |      |        |        |    |    |        |
|  3 | (In millions, except per share data)     | 2018               |        | 2017 |        | 2016 |        |        |    |    |        |
|  4 | Revenues                                 | $                  | 36,397 |      |        | $    | 34,350 |        |    | $  | 32,376 |
|  5 | Cost of sales                            | 20,441             |        |      | 19,038 |      |        | 17,405 |    |    |        |
|  6 | Gross profit                             | 15,956             |        |      | 15,312 |      |        | 14,971 |    |    |        |
|  7 | Demand creation expense                  | 3,577              |        |      | 3,341  |      |        | 3,278  |    |    |        |
|  8 | Operating overhead expense               | 7,934              |        |      | 7,222  |      |        | 7,191  |    |    |        |
|  9 | Total selling and administrative expense | 11,511             |        |      | 10,563 |      |        | 10,469 |    |    |        |
| 10 | Interest expense (income), net           | 54                 |        |      | 59     |      |        | 19     |    |    |        |
| 11 | Other expense (income), net              | 66                 |        |      | (196   | )    |        | (140   | )  |    |        |
| 12 | Income before income taxes               | 4,325              |        |      | 4,886  |      |        | 4,623  |    |    |        |
| 13 | Income tax expense                       | 2,392              |        |      | 646    |      |        | 863    |    |    |        |
| 14 | NET INCOME                               | $                  | 1,933  |      |        | $    | 4,240  |        |    | $  | 3,760  |
| 16 | Earnings per common share:               |                    |        |      |        |      |        |        |    |    |        |
| 17 | Basic                                    | $                  | 1.19   |      |        | $    | 2.56   |        |    | $  | 2.21   |
| 18 | Diluted                                  | $                  | 1.17   |      |        | $    | 2.51   |        |    | $  | 2.16   |
| 20 | Dividends declared per common share      | $                  | 0.78   |      |        | $    | 0.70   |        |    | $  | 0.62   |

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

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Question: What is the percentage change in Nike Inc.'s income tax expense from 2017 to 2018, and how did it affect Nike Inc.'s net income?
Answer: Income Tax Expense 2018: $2,392 million
Income Tax Expense 2017: $646 million
Net Income 2018: $1,933 million
Net Income 2017: $4,240 million

Formula:
Percentage Change in Income Tax Expense = ((Income Tax Expense 2018 - Income Tax Expense 2017) / Income Tax Expense 2017) × 100

Calculation for Income Tax Expense:
Percentage Change = ((2,392 - 646) / 646) × 100
Percentage Change = (1,746 / 646) × 100 ≈ 270.43%

Effect on Net Income:
Despite a higher income tax expense, Nike’s pre-tax income decreased only slightly from $4,886 million in 2017 to $4,325 million in 2018. However, the significant increase in income tax expense (270.43%) caused net income to drop by 54.44% from $4,240 million in 2017 to $1,933 million in 2018. This steep increase in tax expense was driven by the enactment of the Tax Cuts and Jobs Act, which included a one-time transition tax on foreign earnings.

Answer:
Income tax expense increased by 270.43% from 2017 to 2018, primarily due to the Tax Cuts and Jobs Act. This substantial rise in tax expense significantly impacted net income, resulting in a decrease of 54.44%, even though pre-tax income saw only a modest decline.