Fair Value Measurements, Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Aug. 31, 2020

Fair Value Disclosures [Abstract]

Estimated Carrying and Fair Values of Financial Instrument Assets and Liabilities Not Measured at Fair Value on a Recurring Basis

Financial Instruments that are not Measured at Fair Value on a Recurring Basis 

	August 31, 2020								November 30, 2019
	Carrying Value		Fair Value						Carrying Value		Fair Value
(in millions)			Level 1		Level 2		Level 3				Level 1		Level 2		Level 3
Assets
Long-term other assets (a)	$	46	$	—	$	24	$	14	$	181	$	—	$	31	$	149
Total	$	46	$	—	$	24	$	14	$	181	$	—	$	31	$	149
Liabilities
Fixed rate debt (b)	$	14,250	$	—	$	13,789	$	—	$	7,438	$	—	$	7,782	$	—
Floating rate debt (b)	11,287		—		10,291		—		4,195		—		4,248		—
Total	$	25,537	$	—	$	24,080	$	—	$	11,634	$	—	$	12,030	$	—

(a)Long-term other assets are comprised of notes receivable, which at November 30, 2019, included loans on ship sales. The fair values of our Level 2 notes receivable were based on estimated future cash flows discounted at appropriate market interest rates. The fair values of our Level 3 notes receivable were estimated using risk-adjusted discount rates.

(b)The debt amounts above do not include the impact of interest rate swaps or debt issuance costs. The fair values of our publicly-traded notes were based on their unadjusted quoted market prices in markets that are not sufficiently active to be Level 1 and, accordingly, are considered Level 2. The fair values of our other debt were estimated based on current market interest rates being applied to this debt.

Estimated Fair Value and Basis of Valuation of Financial Instrument Assets and Liabilities Measured at Fair Value on Recurring Basis

Financial Instruments that are Measured at Fair Value on a Recurring Basis

	August 31, 2020						November 30, 2019
(in millions)	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	8,176	$	—	$	—	$	518	$	—	$	—
Restricted cash	15		—		—		13		—		—
Derivative financial instruments	—		1		—		—		58		—
Total	$	8,191	$	1	$	—	$	530	$	58	$	—
Liabilities
Derivative financial instruments	$	—	$	11	$	—	$	—	$	25	$	—
Total	$	—	$	11	$	—	$	—	$	25	$	—

Reconciliation of Changes in Carrying Amounts of Goodwill

	Goodwill
(in millions)	NAA Segment		EA Segment		Total
At November 30, 2019	$	1,898	$	1,014	$	2,912
Impairment charges	(1,319)		(777)		(2,096)
Foreign currency translation adjustment	—		(10)		(10)
At August 31, 2020	$	579	$	228	$	807

Reconciliation of Changes in Carrying Amounts of Trademarks

	Trademarks
(in millions)	NAA Segment		EA Segment		Total
At November 30, 2019	$	927	$	240	$	1,167
Foreign currency translation adjustment	—		12		13
At August 31, 2020	$	927	$	253	$	1,180

Estimated Fair Values of Derivative Financial Instruments and Location in the Consolidated Balance Sheets

Derivative Instruments and Hedging Activities

(in millions)	Balance Sheet Location	August 31, 2020		November 30, 2019
Derivative assets
Derivatives designated as hedging instruments
Cross currency swaps (a)	Prepaid expenses and other	$	—	$	32
	Other assets	—		25
Foreign currency zero cost collars (b)	Prepaid expenses and other	1		—
Total derivative assets		$	1	$	58
Derivative liabilities
Derivatives designated as hedging instruments
Cross currency swaps (a)	Accrued liabilities and other	$	—	$	1
	Other long-term liabilities	—		9
Foreign currency zero cost collars (b)	Accrued liabilities and other	—		1
Interest rate swaps (c)	Accrued liabilities and other	5		6
	Other long-term liabilities	6		9
Total derivative liabilities		$	11	$	25

(a)At August 31, 2020, we had no cross currency swaps. At November 30, 2019, we had cross currency swaps totaling $1.9 billion that were designated as hedges of our net investment in foreign operations with a euro-denominated functional currency.

(b)At August 31, 2020 and November 30, 2019, we had foreign currency derivatives consisting of foreign currency zero cost collars designated as foreign currency cash flow hedges for a portion of our euro-denominated shipbuilding payments. See “Newbuild Currency Risks” below for additional information regarding these derivatives.

(c)We have interest rate swaps designated as cash flow hedges whereby we receive floating interest rate payments in exchange for making fixed interest rate payments. These interest rate swap agreements effectively changed $273 million at August 31, 2020 and $300 million at November 30, 2019 of EURIBOR-based floating rate euro debt to fixed rate euro debt. At August 31, 2020, these interest rate swaps settle through 2025.

Offsetting Derivative Instruments

	August 31, 2020
(in millions)	Gross Amounts		Gross Amounts Offset in the Balance Sheet		Total Net Amounts Presented in the Balance Sheet		Gross Amounts not Offset in the Balance Sheet		Net Amounts
Assets	$	2	$	(1)	$	1	$	—	$	1
Liabilities	$	12	$	(1)	$	11	$	—	$	11
	November 30, 2019
(in millions)	Gross Amounts		Gross Amounts Offset in the Balance Sheet		Total Net Amounts Presented in the Balance Sheet		Gross Amounts not Offset in the Balance Sheet		Net Amounts
Assets	$	58	$	—	$	58	$	(4)	$	54
Liabilities	$	25	$	—	$	25	$	(4)	$	21

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

The effect of our derivatives qualifying and designated as hedging instruments recognized in other comprehensive income (loss) and in net income (loss) was as follows:

	Three Months Ended August 31,				Nine Months Ended August 31,
(in millions)	2020		2019		2020		2019
Gains (losses) recognized in AOCI:
Cross currency swaps - net investment hedges - included component	$	—	$	16	$	131	$	36
Cross currency swaps - net investment hedges - excluded component	$	—	$	3	$	(1)	$	2
Foreign currency zero cost collars - cash flow hedges	$	3	$	(4)	$	2	$	(5)
Foreign currency forwards - cash flow hedges	$	—	$	—	$	53	$	—
Interest rate swaps - cash flow hedges	$	1	$	(1)	$	5	$	(1)
Gains (losses) reclassified from AOCI - cash flow hedges:
Interest rate swaps - Interest expense, net of capitalized interest	$	(1)	$	(2)	$	(4)	$	(6)
Foreign currency zero cost collars - Depreciation and amortization	$	—	$	—	$	—	$	1
Gains (losses) recognized on derivative instruments (amount excluded from effectiveness testing – net investment hedges)
Cross currency swaps - Interest expense, net of capitalized interest	$	—	$	6	$	12	$	16

Schedule of Newbuild Currency

At August 31, 2020, for the following newbuild, we had foreign currency contracts for a portion of our euro-denominated shipyard payments. These contracts are designated as cash flow hedges.

	Entered Into	Matures In	Weighted-Average Floor Rate		Weighted- Average Ceiling Rate
Foreign currency zero cost collars
Mardi Gras	2020	December 2020	$	1.12	$	1.28