Derivative Financial Instruments (Tables)

12 Months Ended

Nov. 29, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The fair value of derivative instruments on our Consolidated Balance Sheets as of November 29, 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)}	$	25,605	$	—	$	40,191	$	—
Treasury lock ⁽¹⁾	—		29,652		—		—
Interest rate swap ⁽³⁾	—		208		—		9,744
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts ⁽¹⁾	3,224		2,671		4,068		816
Total derivatives	$	28,829	$	32,531	$	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 to income within the next 18 months, of which $13.2 million is expected within the next 12 months.

⁽³⁾

Included in accrued expenses and other liabilities on our Consolidated Balance Sheets as of November 29, 2019 and November 30, 2018, respectively.

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

The effects of foreign currency derivative instruments designated as cash flow hedges and foreign currency derivative instruments not designated as hedges in our Consolidated Statements of Income for fiscal 2019, 2018 and 2017 were as follows:



(in thousands)	2019								2018					2017
	Foreign Exchange Option Contracts			Foreign Exchange Forward Contracts		Treasury Lock			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 OCI, net of tax ⁽¹⁾	$	16,526		$	—	$	(22,684	)	$	74,080		$	—	$	6,917		$	—
Net gain (loss) reclassified from accumulated OCI into income, net of tax ^{(2) (4)}	39,111			—		(1,228		)	48,647			—		32,852			—
Net gain (loss) recognized in income ^{(3) (4)}	(24,269		)	—		—			(41,179		)	—		(30,243		)	—
Derivatives not designated as hedging relationships:
Net gain (loss) recognized in revenue	761			—		—			—			—		—			—
Net gain (loss) recognized in interest and other income (expense), net	$	—		$	4,229	$	—		$	—		$	1,529	$	—		$	6,586

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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⁾	Amount excluded from effectiveness testing and ineffective portion 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.

Net Gains (Losses) Recognized in Interest and Other Income (Expense) Net, Relating to Non-Designated Derivatives

Net gains (losses) recognized in interest and other income (expense), net relating to foreign currency derivatives not designated as hedging instruments for fiscal 2019, 2018 and 2017 were as follows:



(in thousands)	2019			2018			2017
Gain (loss) on foreign currency assets and liabilities:
Net realized gain (loss) recognized in other income	$	(14,420	)	$	882		$	(6,142	)
Net unrealized gain (loss) recognized in other income	8,050			(3,843		)	(907		)
	(6,370		)	(2,961		)	(7,049		)
Gain (loss) on hedges of foreign currency assets and liabilities:
Net realized gain (loss) recognized in other income	6,928			(2,042		)	5,415
Net unrealized gain (loss) recognized in other income	(2,699		)	3,571			1,171
	4,229			1,529			6,586
Net gain (loss) recognized in interest and other income (expense), net	$	(2,141	)	$	(1,432	)	$	(463	)