Derivatives and Hedging Activities (Tables)

12 Months Ended

Dec. 01, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The fair value of derivative instruments on our Consolidated Balance Sheets as of December 1, 2017 and December 2, 2016 were as follows (in thousands):



	2017				2016
	Fair Value Asset Derivatives		Fair Value Liability Derivatives		Fair Value Asset Derivatives		Fair Value Liability Derivatives
Derivatives designated as hedging instruments:
Foreign exchange option contracts ⁽¹⁾⁽²⁾	$	12,918	$	—	$	34,355	$	—
Interest rate swap ⁽³⁾	—		1,058		13,117		—
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts ⁽¹⁾	1,280		1,598		3,757		5,246
Total derivatives	$	14,198	$	2,656	$	51,229	$	5,246

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⁽¹⁾	Included in prepaid expenses and other current assets and accrued expenses for asset derivatives and liability derivatives, respectively, on our Consolidated Balance Sheets.


⁽²⁾	Hedging effectiveness expected to be recognized to income within the next twelve months.


⁽³⁾	Included in other liabilities and other assets in fiscal 2017 and 2016, respectively, on our Consolidated Balance Sheets.

Effect of Derivative Instruments as Designated Cash Flow Hedges and Not Designated as Hedges

The effect of foreign currency derivative instruments designated as cash flow hedges and of foreign currency derivative instruments not designated as hedges in our Consolidated Statements of Income for fiscal 2017, 2016 and 2015 were as follows (in thousands):



	2017					2016						2015
	Foreign Exchange Option Contracts			Foreign Exchange Forward Contracts		Foreign Exchange Option Contracts			Foreign Exchange Forward Contracts			Foreign Exchange Option Contracts			Foreign Exchange Forward Contracts
Derivatives in cash flow hedging relationships:
Net gain (loss) recognized in other comprehensive income, net of tax⁽¹⁾	$	6,917		$	—	$	36,511		$	—		$	39,825		$	—
Net gain (loss) reclassified from accumulated other comprehensive income into income, net of tax⁽²⁾	$	32,852		$	—	$	18,823		$	—		$	56,336		$	—
Net gain (loss) recognized in income⁽³⁾	$	(30,243	)	$	—	$	(29,169	)	$	—		$	(17,423	)	$	—
Derivatives not designated as hedging relationships:
Net gain (loss) recognized in income⁽⁴⁾	$	—		$	6,586	$	—		$	(1,308	)	$	—		$	4,430

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⁽¹⁾	Net change in the fair value of the effective portion classified in other comprehensive income (“OCI”).


⁽²⁾	Effective portion classified as revenue.


⁽³⁾	Ineffective portion and amount excluded from effectiveness testing classified in interest and other income (expense), net.


⁽⁴⁾	Classified in interest and other income (expense), net.

Net Gains (Losses) Recognized in Interest and Other Income (Expense) Net, Relating to Balance Sheet Hedging

Net gains (losses) recognized in interest and other income (expense), net relating to balance sheet hedging for fiscal 2017, 2016 and 2015 were as follows (in thousands):



	2017			2016			2015
Gain (loss) on foreign currency assets and liabilities:
Net realized gain (loss) recognized in other income	$	(6,142	)	$	832		$	(10,952	)
Net unrealized gain (loss) recognized in other income	(907		)	(6,070		)	3,815
	(7,049		)	(5,238		)	(7,137		)
Gain (loss) on hedges of foreign currency assets and liabilities:
Net realized gain recognized in other income	5,415			174			5,490
Net unrealized gain (loss) recognized in other income	1,171			(1,482		)	(1,060		)
	6,586			(1,308		)	4,430
Net gain (loss) recognized in interest and other income (expense), net	$	(463	)	$	(6,546	)	$	(2,707	)