2010, other (income) expense, net was primarily comprised of net foreign currency gains and the recognition of previously deferred licensing income related to our fiscal 2008 sale of NIKE Bauer Hockey.

For fiscal 2010, we estimate that the combination of translation of foreign currency−denominated profits from our international businesses and the year−over−year change in foreign currency related gains included in other (income) expense, net increased our income before income taxes by approximately $34 million.

Fiscal 2009 Compared to Fiscal 2008

For fiscal 2009, other (income) expense, net was primarily comprised of $43 million of foreign currency conversion gains and the recognition of $24 million of licensing income related to our fiscal 2008 sale of the NIKE Bauer Hockey business. For fiscal 2008, other (income) expense, net was primarily comprised of a $32 million gain on the sale of NIKE Bauer Hockey and a $29 million gain on the sale of the Starter brand business, as well as foreign currency conversion losses of $77 million.

For fiscal 2009, we estimate that the combination of translation of foreign currency−denominated profits from our international businesses and the year−over−year change in foreign currency related gains and losses included in other (income) expense, net increased our income before income taxes by approximately $124 million.

Income Taxes

Fiscal 2010 Compared to Fiscal 2009

Our effective tax rate for fiscal 2010 was 20 basis points higher than the effective rate for fiscal 2009. Our effective tax rate for fiscal 2009 includes a tax benefit related to charges recorded for the impairment of Umbro’s goodwill, intangible and other assets. Excluding this tax benefit, our effective rate for fiscal 2009 would have been 26.5%, 230 basis points higher than our effective tax rate for fiscal 2010. The decrease in our effective tax rate for fiscal 2010 was primarily attributable to the continued benefit from our international operations, where tax rates for these operations are generally lower than the U.S. statutory rate.

We estimate that our effective tax rate for fiscal year 2011 will be in line with our fiscal 2010 effective tax rate.

Fiscal 2009 Compared to Fiscal 2008

Our effective tax rate for fiscal 2009 was 80 basis points lower than the effective tax rate for fiscal 2008 due primarily to the tax benefit related to the impairment of goodwill, intangible and other assets of Umbro which had a favorable impact of 250 basis points. Profits earned outside of the U.S., the impact of the resolution of foreign audit items and the retroactive reinstatement of the research and development tax credit also favorably impacted our fiscal 2009 effective tax rate. Reflected in the effective tax rate for fiscal 2008 was a one−time tax benefit of $105 million, which had a favorable impact of 420 basis points on our effective tax rate.

Operating Segments

As part of the restructuring initiative that took place in fiscal 2009, the Company changed the geographic structure of NIKE Brand to six geographies to streamline its management structure, enhance consumer focus, drive innovation more quickly to market and establish a more