XML 31 R16.htm IDEA: XBRL DOCUMENT v3.23.4
Derivative Instruments and Hedging Activities
 12 Months Ended
Nov. 26, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
As of November 26, 2023, the Company had forward foreign exchange contracts derivatives to buy $946.3 million and to sell $741.1 million in various foreign currencies. These contracts are at various exchange rates and expire at various dates through February 2025.
The table below provides data about the carrying values of derivative instruments and non-derivative instruments: 
 November 26, 2023November 27, 2022
 Assets(Liabilities)Derivative
Net Carrying
Value		Assets(Liabilities)Derivative
Net Carrying
Value
 Carrying
Value		Carrying
Value		Carrying
Value		Carrying
Value
 (Dollars in millions)
Derivatives designated as hedging instruments
Foreign exchange risk cash flow hedges(1)
$6.0 $— $6.0 $15.6 $— $15.6 
Foreign exchange risk cash flow hedges(2)
— (7.1)(7.1)— (7.2)(7.2)
Total$6.0 $(7.1)$15.6 $(7.2)
Derivatives not designated as hedging instruments
Forward foreign exchange contracts(1)
$13.8 $(6.0)$7.8 $21.5 $(15.6)$5.9 
Forward foreign exchange contracts(2)
7.1 (9.1)(2.0)7.2 (8.1)(0.9)
Total
$20.9 $(15.1)$28.7 $(23.7)
Non-derivatives designated as hedging instruments
Euro senior notes
$— $(517.8)$— $(494.5)
_____________
(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.
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:
November 26, 2023November 27, 2022
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 millions)
Foreign exchange risk contracts and forward foreign exchange contracts
Financial assets$26.9 $(13.1)$13.8 $44.3 $(14.6)$29.7 
Financial liabilities(22.2)13.1 (9.1)(30.9)14.6 (16.3)
Total$4.7 $13.4 
The table below provides data about the amount of gains and losses related to derivative instruments and non-derivative instruments designated as cash flow and net investment hedges included in “Accumulated other comprehensive loss” (“AOCL”) on the Company’s consolidated balance sheets, and in “Other (expense) income, net” in the Company’s consolidated statements of income:
 Amount of Gain or (Loss)
Recognized in AOCL
(Effective Portion)
Amount of Gain (Loss) Reclassified
from AOCL into Net Income(1)
 
As of
November 26,
2023
As of
November 27,
2022
Year Ended
November 26,
2023		November 27,
2022		November 28,
2021
 (Dollars in millions)
Foreign exchange risk contracts$(15.0)$22.6 $21.1 $20.8 $(19.3)
Realized forward foreign exchange swaps(2)
4.6 4.6 — — — 
Yen-denominated Eurobonds(19.8)(19.8)— — — 
Euro-denominated senior notes(30.8)(7.4)— — — 
Cumulative income taxes19.0 7.2 — — — 
Total$(42.0)$7.2 
_____________
(1)Amounts reclassified from AOCL 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 AOCL and are not reclassified to earnings until the related net investment position has been liquidated.
There was no hedge ineffectiveness for the year ended November 26, 2023. Within the next 12 months, $16.0 million of losses from cash flow hedges are expected to be reclassified from AOCL into net 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:
Year ended
November 26,
2023		November 27,
2022		November 28,
2021
(Dollars in millions)
Amount of gain (loss) on Cash Flow Hedge Activity:
Net revenues$1.0 $(1.3)$(4.3)
Cost of goods sold20.1 22.1 (15.0)
The table below provides data about the amount of gains and losses related to derivative instruments included in “Other (expense) income, net” in the Company’s consolidated statements of income:
 Year Ended
 November 26,
2023		November 27,
2022		November 28,
2021
 (Dollars in millions)
Forward foreign exchange contracts:
Realized gain (loss)(1)
$23.1 $(18.9)$(9.7)
Unrealized gain (loss)
1.6 11.3 (5.1)
Total$24.7 $(7.6)$(14.8)
_____________
(1)The realized gain in fiscal year 2023 is primarily driven by the settlement of contracts to buy or sell the Euro where the U.S. Dollar weakened against the original contract rates. The realized loss in fiscal year 2022 is primarily driven the settlement of contracts on various currencies, mainly the Euro, as a result of the U.S. Dollar strengthening throughout the year against original contract rates. The realized loss in fiscal year 2021 is primarily driven by the settlement of contracts on various currencies, mainly the Euro, as well as the British Pound, Canadian Dollar and Mexican Peso, as result of the U.S. Dollar strengthening throughout the year against original contract rates. The realized gain (loss) is included in “Other, net” under cash flows from operating activities on the Company’s consolidated statements of cash flows.