FINANCIAL INSTRUMENTS

6 Months Ended

May 31, 2012

FINANCIAL INSTRUMENTS

3. 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 May 31, 2012, the maximum time frame for our foreign exchange forward contracts is 7 months. For all derivatives, the net amount of accumulated other comprehensive income expected to be reclassified in the next 12 months is $0.9 million as a reduction of 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 May 31, 2012
	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	$	17.9
Foreign exchange contracts	Other current assets		30.3		1.7	Other accrued liabilities	$	142.4	$	2.7
Total				$	19.6				$	2.7
As of May 31, 2011
	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	$	17.7	Other accrued liabilities	$	150.0	$	0.9
Foreign exchange contracts	Other current assets		187.3		3.5	Other accrued liabilities		38.2		2.7
Total				$	21.2				$	3.6
As of November 30, 2011
	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	$	18.9
Foreign exchange contracts	Other current assets		97.4		2.7	Other accrued liabilities	$	30.2	$	0.4
Total				$	21.6				$	0.4

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 six month periods ending May 31, 2012 and 2011 (in millions):

Fair Value Hedges
Derivative	Income statement location			Expense
				For the 3 months ended 5/31/12			For the 3 months ended 5/31/11		For the 6 months ended 5/31/12			For the 6 months ended 5/31/11
Interest rate contracts		Interest expense		$	1.2		$	1.3	$	2.4		$	2.5
Cash Flow Hedges – For the 3 months ended May 31,
Derivative	Gain or (Loss) recognized in OCI						Income statement location		Gain or (Loss) reclassified from AOCI
	2012			2011					2012			2011
Interest rate contracts		—		$	(0.9	)		Interest expense	$	(0.4	)	$	(0.4	)
Foreign exchange contracts	$	0.5			—			Cost of goods sold		0.2			(1.0	)
Total	$	0.5		$	(0.9	)			$	(0.2	)	$	(1.4	)
Cash Flow Hedges – For the 6 months ended May 31,
Derivative	Gain or (Loss) recognized in OCI						Income statement location		Gain or (Loss) reclassified from AOCI
	2012			2011					2012			2011
Interest rate contracts		—		$	(0.9	)		Interest expense	$	(0.7	)	$	(0.7	)
Foreign exchange contracts		(0.4	)		(1.8	)		Cost of goods sold		0.6			(1.6	)
Total	$	(0.4	)	$	(2.7	)			$	(0.1	)	$	(2.3	)

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.