XML 76 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
Derivative Instruments and Hedging Activities
 12 Months Ended
Nov. 25, 2012
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
The Company's foreign currency management objective is to minimize the effect of fluctuations in foreign exchange rates on nonfunctional currency cash flows of the Company and its subsidiaries and selected assets or liabilities of the Company and its subsidiaries without exposing the Company to additional risk associated with transactions that could be regarded as speculative. Forward exchange contracts on various currencies are entered into to manage foreign currency exposures associated with certain product sourcing activities, some intercompany sales, foreign subsidiaries' royalty payments, interest payments, earnings repatriations, net investment in foreign operations and funding activities. The Company manages certain forecasted foreign currency exposures and uses a centralized currency management operation to take advantage of potential opportunities to naturally offset foreign currency exposures against each other. The Company designates its outstanding Euro senior notes and a portion of its outstanding Yen-denominated Eurobonds as net investment hedges to manage foreign currency exposures in its foreign operations. The Company does not apply hedge accounting to its derivative transactions. As of November 25, 2012, the Company had forward foreign exchange contracts to buy $795.1 million and to sell $422.3 million against various foreign currencies. These contracts are at various exchange rates and expire at various dates through January 2014.
The table below provides data about the carrying values of derivative instruments and non-derivative instruments:
 
November 25, 2012
 
November 27, 2011
 
Assets
 
(Liabilities)
 
Derivative Net Carrying Value
 
Assets
 
(Liabilities)
 
Derivative Net Carrying Value
 
Carrying
Value
 
Carrying
Value
 
 
Carrying
Value
 
Carrying
Value
 
 
(Dollars in thousands)
Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
 
Forward foreign exchange contracts(1)
$
7,131

 
$
(1,339
)
 
$
5,792

 
$
31,906

 
$
(5,914
)
 
$
25,992

Forward foreign exchange contracts(2)
5,183

 
(8,201
)
 
(3,018
)
 
4,547

 
(9,803
)
 
(5,256
)
Total
$
12,314

 
$
(9,540
)
 
 
 
$
36,453

 
$
(15,717
)
 
 
Non-derivatives designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
 
4.25% Yen-denominated Eurobonds due 2016
$
—

 
$
(28,135
)
 
 
 
$
—

 
$
(46,115
)
 
 
7.75% Euro senior notes due 2018
—

 
(386,520
)
 
 
 
—

 
(400,350
)
 
 
Total
$
—

 
$
(414,655
)
 
 
 
$
—

 
$
(446,465
)
 
 
_____________
(1)
Included in “Other current assets” or “Other non-current assets” on the Company’s consolidated balance sheets.
(2)
Included in “Other accrued liabilities” on the Company’s consolidated balance sheets.
The table below provides data about the amount of gains and losses related to derivative instruments and non-derivative instruments designated as net investment hedges included in “Accumulated other comprehensive loss” (“AOCI”) on the Company’s consolidated balance sheets, and in “Other income (expense), net” in the Company’s consolidated statements of income:
 
Gain or (Loss)
Recognized in AOCI
(Effective Portion)
 
Gain or (Loss) Recognized in Other
Income (Expense), net (Ineffective
Portion and Amount Excluded from
Effectiveness Testing)
 
As of
 
As of
 
Year Ended
November 25,
2012
November 27,
2011
November 25,
2012
 
November 27,
2011
 
November 28,
2010
 
(Dollars in thousands)
 
 
Forward foreign exchange contracts
$
4,637

 
$
4,637

 


 


 


4.25% Yen-denominated Eurobonds due 2016
(26,285
)
 
(28,525
)
 
$
3,474

 
$
(5,033
)
 
$
2,254

7.75% Euro senior notes due 2018
(9,451
)
 
(23,281
)
 
—

 
—

 
—

Cumulative income taxes
12,246

 
18,476

 
 
 
 
 
 
Total
$
(18,853
)
 
$
(28,693
)
 
 
 
 
 
 

The table below provides data about the amount of gains and losses related to derivatives not designated as hedging instruments included in “Other income (expense), net” in the Company’s consolidated statements of income:
 
Gain or (Loss)
 
Year Ended
 
November 25,
2012
 
November 27,
2011
 
November 28,
2010
 
(Dollars in thousands)
Forward foreign exchange contracts:
 
 
 
 
 
Realized
$
8,508

 
$
(9,548
)
 
$
(16,342
)
Unrealized
(17,952
)
 
24,858

 
10,163

Total
$
(9,444
)
 
$
15,310

 
$
(6,179
)