XML 113 R37.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Derivative Instruments and Hedging Activities (Tables)
 12 Months Ended
Nov. 24, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Carrying values of derivative instruments and non-derivative instruments
The table below presents the gross and net amounts of these contracts recognized on the Company's consolidated balance sheets by type of financial instrument:
 
 
November 24, 2019
 
November 25, 2018
 
 
Gross Amounts of Assets / (Liabilities) Presented in the Balance Sheet
 
Gross Amounts Not Offset in the Balance Sheet
 
Net Amount of Assets / (Liabilities)
Gross Amounts of Assets / (Liabilities) Presented in the Balance Sheet
 
Gross Amounts Not Offset in the Balance Sheet
 
Net Amount of Assets / (Liabilities)
 
 
 
(Dollars in thousands)
 
Foreign exchange risk contracts and forward foreign exchange contracts
 
 
 
 
 
 
 
 
 
 
 
 
Financial assets
$
21,839

 
$
(10,142
)
 
$
11,697

 
$
16,417

 
$
(1,756
)
 
$
14,661

 
Financial liabilities
(16,290
)
 
10,142

 
(6,148
)
 
(2,181
)
 
1,756

 
(425
)
 
Total
 
 
 
 
$
5,549

 
 
 
 
 
$
14,236

 
Embedded derivative contracts
 
 
 
 
 
 
 
 
 
 
 
 
Financial assets
$
4,446

 
$
—

 
$
4,446

 
$
1,955

 
$
—

 
$
1,955

 
Financial liabilities
(1,795
)
 
—

 
(1,795
)
 
(2,266
)
 
—

 
(2,266
)
 
Total
 
 
 
 
$
2,651

 
 
 
 
 
$
(311
)
The table below provides data about the carrying values of derivative instruments and non-derivative instruments: 
 
November 24, 2019
 
November 25, 2018
 
Assets
 
(Liabilities)
 
Derivative Net Carrying Value
 
Assets
 
(Liabilities)
 
Derivative Net Carrying Value
 
Carrying
Value
 
Carrying
Value
 
 
Carrying
Value
 
Carrying
Value
 
 
(Dollars in thousands)
Derivatives designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange risk cash flow hedges(1)
$
6,149

 
$
—

 
$
6,149

 
$
—

 
$
—

 
$
—

Foreign exchange risk cash flow hedges(2)
—

 
(3,809
)
 
(3,809
)
 
—

 
—

 
—

Total
$
6,149

 
$
(3,809
)
 
 
 
$
—

 
$
—

 
 
Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
 
Forward foreign exchange contracts(1)
$
16,323

 
$
(6,149
)
 
$
10,174

 
$
18,372

 
$
—

 
$
18,372

Forward foreign exchange contracts(2)
3,813

 
(8,127
)
 
(4,314
)
 
—

 
(4,447
)
 
(4,447
)
Total
$
20,136

 
$
(14,276
)
 
 
 
$
18,372

 
$
(4,447
)
 
 
Non-derivatives designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
 
Euro senior notes
$
—

 
$
(525,255
)
 
 
 
$
—

 
$
(541,500
)
 
 

_____________
(1)
Included in "Other current assets" or "Other non-current assets" on the Company’s consolidated balance sheets.
(2)
Included in "Other accrued liabilities" or "Other long-term liabilities" on the Company’s consolidated balance sheets.
Gains and losses included in AOCI
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)
 
Amount of Gain (Loss) Reclassified from AOCI into Net Income(1)
 
As of
 
As of
 
Year Ended
November 24,
2019
November 25,
2018
November 24,
2019
 
November 25,
2018
 
November 26,
2017
 
(Dollars in thousands)
Foreign exchange risk contracts
$
2,781

 
$
—

 
$
3,418

 
$
—

 
$
—

Realized forward foreign exchange swaps(2)
4,637

 
4,637

 
$
—

 
$
—

 
$
—

Yen-denominated Eurobonds
(19,811
)
 
(19,811
)
 
$
—

 
$
—

 
$
—

Euro-denominated senior notes
(38,171
)
 
(54,416
)
 
$
—

 
$
—

 
$
—

Cumulative income taxes
25,606

 
29,703

 
$
—

 
$
—

 
$
—

Total
$
(24,958
)
 
$
(39,887
)
 
 
 
 
 
 

_____________
(1) Amounts reclassified from AOCI were classified as net revenues or costs of goods sold on the consolidated statements of income.
(2) Prior to and during 2005, the Company used foreign exchange currency swaps to hedge the net investment in its foreign operations. For hedges that qualified for hedge accounting, the net gains were included in AOCI and are not reclassified to earnings until the related net investment position has been liquidated.
Gains and losses included in statements of income
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:
 
Year Ended
 
November 24,
2019
 
November 25,
2018
 
November 26,
2017
 
(Dollars in thousands)
Forward foreign exchange contracts:
 
 
 
 
 
Realized gain (loss)(1)
$
8,164

 
$
(19,974
)
 
$
(5,773
)
Unrealized (loss) gain (2)
(8,038
)
 
31,141

 
(35,394
)
Total
$
126

 
$
11,167

 
$
(41,167
)
_____________
(1)
The realized gain in 2019 is driven by gains on contracts to sell various currencies, mainly the Euro, as a result of the U.S. Dollar strengthening throughout the year against lower original contract rates.
(2)
The unrealized loss in 2019 is driven by losses on contracts to sell various foreign currencies, mainly the Euro, as a result of the U.S. Dollar weakening against the original contract rates at year end. The gain in 2018 is primarily driven by gains on contracts to sell the Euro, the Mexican Peso and the British Pound, as a result of the U.S. Dollar strengthening at year end. The unrealized loss in 2017 is primarily driven by losses on contracts to sell the Mexican Peso, the Euro and the British Pound, as a result of the U.S. Dollar weakening at year end.
The table below presents the effects of the Company's cash flow hedges of foreign exchange risk contracts on the Consolidated Statements of Income for the year ended November 24, 2019:
 
Year ended
 
November 24,
2019
 
(Dollars in thousands)
Amount of Gain (Loss) on Cash Flow Hedge Activity:
 
Revenues
$
(3,908
)
Cost of Goods Sold
$
7,326