Derivatives and Hedging Activities (Tables)

9 Months Ended

Aug. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Derivative Instruments

The fair value of derivative instruments on our condensed consolidated balance sheets as of August 30, 2019 and November 30, 2018 were as follows:

(in thousands)	2019				2018
	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)	$	44,209	$	—	$	40,191	$	—
Treasury lock(1)	—		56,910		—		—
Interest rate swap(3)	—		471		—		9,744
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts(1)	3,438		3,882		4,068		816
Total derivatives	$	47,647	$	61,263	$	44,259	$	10,560

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⁽¹⁾  Fair value asset derivatives included in prepaid expenses and other current assets and fair value liability derivatives included in accrued expenses on our consolidated balance sheets.

⁽²⁾  Hedging effectiveness expected to be recognized into income within the next 18 months, of which $34.9 million is expected within the next 12 months.

⁽³⁾ 

Included in accrued expenses and other liabilities on our condensed consolidated balance sheets as of August 30, 2019 and November 30, 2018, respectively.

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

The effect of foreign currency and interest rate derivative instruments designated as cash flow hedges and of foreign currency derivative instruments not designated as hedges in our condensed consolidated statements of income for the three months ended August 30, 2019 and August 31, 2018 was as follows:

(in thousands)	2019								2018
	Foreign Exchange Option Contracts		Foreign Exchange Forward Contracts			Treasury Lock			Foreign Exchange Option Contracts			Foreign Exchange Forward Contracts
Derivatives in cash flow hedging relationships:
Net gain (loss) recognized in OCI, net of tax(1)	$	15,040	$	—		$	(43,394	)	$	17,523		$	—
Net gain (loss) reclassified from accumulated OCI into income, net of tax(2) (4)	$	10,015	$	—		$	(305	)	$	16,797		$	—
Net gain (loss) recognized in income(3) (4)	$	—	$	—		$	—		$	(9,281	)	$	—
Derivatives not designated as hedging relationships:
Net gain (loss) recognized in revenue	$	761	$	—		$	—		$	—		$	—
Net gain (loss) recognized in interest and other income (expense), net	$	—	$	(1,184	)	$	—		$	—		$	(1,695	)

The effect of foreign currency and interest rate derivative instruments designated as cash flow hedges and of foreign currency derivative instruments not designated as hedges in our condensed consolidated statements of income for the nine months ended August 30, 2019 and August 31, 2018 was as follows:

(in thousands)	2019								2018
	Foreign Exchange Option Contracts			Foreign Exchange Forward Contracts		Treasury Lock			Foreign Exchange Option Contracts			Foreign Exchange Forward Contracts
Derivatives in cash flow hedging relationships:
Net gain (loss) recognized in OCI, net of tax(1)	$	23,348		$	—	$	(43,394	)	$	47,290		$	—
Net gain (loss) reclassified from accumulated OCI into income, net of tax(2) (4)	$	27,507		$	—	$	(924	)	$	18,156		$	—
Net gain (loss) recognized in income(3) (4)	$	(24,269	)	$	—	$	—		$	(31,690	)	$	—
Derivatives not designated as hedging relationships:
Net gain (loss) recognized in revenue	$	761		$	—	$	—		$	—		$	—
Net gain (loss) recognized in interest and other income (expense), net	$	—		$	184	$	—		$	—		$	(2,572	)

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

⁽²⁾  Effective portion of the foreign currency and Treasury lock cash flow hedges classified as revenue and interest expense, respectively.

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

⁽⁴⁾  Starting the third quarter of fiscal 2019, all changes in fair value of our foreign currency cash flow hedges are recorded in accumulated other comprehensive income.