Financial instruments

9 Months Ended

Aug. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

FINANCIAL INSTRUMENTS

FINANCING ARRANGEMENTS AND FINANCIAL INSTRUMENTS

We use derivative financial instruments to enhance our ability to manage risk, including foreign currency and interest rate exposures, which exist as part of our ongoing business operations. We do not enter into contracts for trading purposes, nor are we a party to any leveraged derivative instruments. The use of derivative financial instruments is monitored through regular communication with senior management and the use of written guidelines.

As of August 31, 2014, the maximum time frame for our foreign exchange forward contracts is 15 months. For all derivatives, the net amount of accumulated other comprehensive income expected to be reclassified in the next 12 months is $0.2 million as an increase to earnings.

All derivatives are recognized at fair value in the balance sheet and recorded in either current or noncurrent other assets or other accrued liabilities or other long-term liabilities depending upon nature and maturity.

The following table discloses the fair values of derivative instruments on our balance sheet (in millions):

As of August 31, 2014	Asset Derivatives					Liability Derivatives
	Balance Sheet Location	Notional Amount		Fair Value		Balance Sheet Location	Notional Amount		Fair Value
Interest rate contracts	Other current assets	$	100.0	$	7.3
Foreign exchange contracts	Other current assets	105.9		1.6		Other accrued liabilities	$	104.6	$	0.8
Total				$	8.9				$	0.8
As of August 31, 2013	Asset Derivatives					Liability Derivatives
	Balance Sheet Location	Notional Amount		Fair Value		Balance Sheet Location	Notional Amount		Fair Value
Interest rate contracts	Other current assets	$	100.0	$	11.5
Foreign exchange contracts	Other current assets	57.5		1.4		Other accrued liabilities	$	66.0	$	1.0
Total				$	12.9				$	1.0
As of November 30, 2013	Asset Derivatives					Liability Derivatives
	Balance Sheet Location	Notional Amount		Fair Value		Balance Sheet Location	Notional Amount		Fair Value
Interest rate contracts	Other current assets	$	100.0	$	12.2
Foreign exchange contracts	Other current assets	79.2		1.1		Other accrued liabilities	$	125.7	$	1.6
Total				$	13.3				$	1.6

The following tables disclose the impact of derivative instruments on our other comprehensive income (OCI), accumulated other comprehensive income (AOCI) and our income statement for the three and nine month periods ended August 31, 2014 and 2013 (in millions):

Fair Value Hedges
Derivative	Income statement location	Expense
		For the three months ended August 31, 2014		For the three months ended August 31, 2013		For the nine months ended August 31, 2014		For the nine months ended August 31, 2013
Interest rate contracts	Interest  expense	$	1.3	$	1.2	$	3.8	$	3.7

Cash Flow Hedges –
For the three months ended August 31,
Derivative	Gain or (Loss) recognized in OCI				Income statement location	Gain or (Loss) reclassified from AOCI
	2014		2013			2014			2013
Interest rate contracts	$	—	$	4.7	Interest expense	$	—		$	(0.3	)
Foreign exchange contracts	1.1		0.2		Cost of goods sold	(0.3		)	0.3
Total	$	1.1	$	4.9		$	(0.3	)	$	—
Cash Flow Hedges –
For the nine months ended August 31,
Derivative	Gain or (Loss) recognized in OCI				Income statement location	Gain or (Loss) reclassified from AOCI
	2014		2013			2014			2013
Interest rate contracts	$	—	$	9.2	Interest expense	$	(0.1	)	$	(1.0	)
Foreign exchange contracts	0.6		2.3		Cost of goods sold	(0.8		)	(0.4		)
Total	$	0.6	$	11.5		$	(0.9	)	$	(1.4	)

The amount of gain or loss recognized in income on the ineffective portion of derivative instruments is not material. The amounts noted in the tables above for OCI do not include any adjustments for the impact of deferred income taxes.