Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Feb. 27, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Carrying values of derivative instruments and non-derivative instruments

The table below provides data about the carrying values of derivative and non-derivative instruments: 

	February 27, 2022						November 28, 2021
	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)	$	15,823	$	—	$	15,823	$	24,858	$	—	$	24,858
Foreign exchange risk cash flow hedges(2)	—		(3,048)		(3,048)		—		(2,030)		(2,030)
Total	$	15,823	$	(3,048)			$	24,858	$	(2,030)
Derivatives not designated as hedging instruments
Forward foreign exchange contracts(1)	$	19,770	$	(15,823)	$	3,947	$	27,512	$	(24,858)	$	2,654
Forward foreign exchange contracts(2)	3,048		(10,542)		(7,494)		2,030		(13,255)		(11,225)
Total	$	22,818	$	(26,365)			$	29,542	$	(38,113)
Non-derivatives designated as hedging instruments
Euro senior notes	$	—	$	(531,525)			$	—	$	(532,285)

_____________

(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.

Offsetting assets and liabilities

The Company's over-the-counter forward foreign exchange contracts are subject to International Swaps and Derivatives Association, Inc. master agreements. These agreements permit the net settlement of these contracts on a per-institution basis; however, the Company records the fair value on a gross basis on its consolidated balance sheets based on maturity dates, including those subject to master netting arrangements. 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:

	February 27, 2022						November 28, 2021
	Gross Amounts of Assets / (Liabilities) Presented in the Balance Sheet		Gross Amounts Not Offset in the Balance Sheet		Net Amounts of Assets / (Liabilities)		Gross Amounts of Assets / (Liabilities) Presented in the Balance Sheet		Gross Amounts Not Offset in the Balance Sheet		Net Amounts of Assets / (Liabilities)
	(Dollars in thousands)
Foreign exchange risk contracts and forward foreign exchange contracts
Financial assets	$	38,641	$	(7,389)	$	31,252	$	54,400	$	(10,152)	$	44,248
Financial liabilities	(29,413)		7,389		(22,024)		(40,143)		10,152		(29,991)
Total					$	9,228					$	14,257

Gains and losses included in AOCI

The table below provides data about the amount of gains and losses related to derivative instruments designated as cash flow hedges and non-derivative instruments designated as net investment hedges included in "Accumulated other comprehensive loss" ("AOCL") on the Company’s consolidated balance sheets:

	Amount of Gain (Loss) Recognized in AOCL (Effective Portion)				Amount of Gain (Loss) Reclassified from  AOCL into Net Income(1)
	As of February 27, 2022		As of November 28,  2021		Three Months Ended
					February 27, 2022		February 28, 2021
	(Dollars in thousands)
Foreign exchange risk contracts	$	19,376	$	24,304	$	555	$	(1,878)
Realized forward foreign exchange swaps (2)	4,637		4,637		—		—
Yen-denominated Eurobonds	(19,811)		(19,811)		—		—
Euro-denominated senior notes	(44,441)		(45,201)		—		—
Cumulative income taxes	16,245		15,157		—		—
Total	$	(23,994)	$	(20,914)

_____________

(1)Amounts reclassified from AOCL were classified as net revenues and cost 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 AOCL 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 presents the effects of the Company's cash flow hedges of foreign exchange risk contracts on the consolidated statements of income:

	Three Months Ended
	February 27, 2022		February 28, 2021
	(Dollars in thousands)
Amount of Gain (Loss) on Cash Flow Hedge Activity
Net revenues	$	(914)	$	943
Cost of goods sold	$	1,469	$	(2,821)

The table below provides data about the amount of gains and losses related to derivatives instruments included in "Other income, net" in the Company's consolidated statements of income:

	Three Months Ended
	February 27, 2022		February 28, 2021
	(Dollars in thousands)
Realized (loss) gain	$	(1,354)	$	1,749
Unrealized gain (loss)	3,675		(1,382)
Total	$	2,321	$	367