rates and standard rates used to record non-functional currency denominated product purchases within the NIKE Brand geographic operating segments and Converse; related foreign currency hedge results; conversion gains and losses arising from re-measurement of monetary assets and liabilities in non- functional currencies; and certain other foreign currency hedge results. 

Fiscal 2014 Compared to Fiscal 2013 

For fiscal 2014, Corporate’s loss before interest and taxes increased by $125 million primarily due to the following: 

• a $99 million increase in corporate overhead expense related to corporate initiatives to support the growth of the business as well as performance- based compensation; 

• a $90 million increase in foreign currency net losses, reported as a component of Other expense (income), net; and 

• a $56 million decrease in foreign exchange losses related to the difference between actual foreign currency exchange rates and standard foreign currency exchange rates assigned to the NIKE Brand geographic operating segments and Converse, net of hedge gains; these losses are reported as a component of consolidated gross margin. 

Fiscal 2013 Compared to Fiscal 2012 

For fiscal 2013, Corporate’s loss before interest and taxes increased by $210 million primarily due to the following: 

a $165 million increase in foreign exchange losses related to the difference between actual foreign currency exchange rates and standard foreign currency exchange rates assigned to the NIKE Brand geographic operating segments and Converse, net of hedge gains; these losses are reported as a component of consolidated gross margin; 

an $86 million increase in corporate overhead expense related to corporate initiatives to support the growth of the business and performance-based compensation; and 

a $48 million decrease in foreign currency net losses, reported as a component of Other expense (income), net. 

Foreign Currency Exposures and Hedging Practices 

Overview 

As a global company with significant operations outside the United States, in the normal course of business we are exposed to risk arising from changes in currency exchange rates. Our primary foreign currency exposures arise from the recording of transactions denominated in non-functional currencies and the translation of foreign currency denominated results of operations, financial position, and cash flows into U.S. Dollars. 

Our foreign exchange risk management program is intended to lessen both the positive and negative effects of currency fluctuations on our consolidated results of operations, financial position, and cash flows. We manage global foreign exchange risk centrally on a portfolio basis to address those risks that are material to NIKE, Inc. We manage these exposures by taking advantage of natural offsets and currency correlations that exist within the portfolio and, where practical and material, by hedging a portion of the remaining exposures using derivative instruments such as forward contracts and options. As described below, the implementation of the NIKE Trading Company (“NTC”) and our foreign currency adjustment program enhanced our ability to manage our foreign