Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Nov. 26, 2023

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 instruments and non-derivative instruments: 

	November 26, 2023						November 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 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, 2023						November 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

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 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 taxes	19.0		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.

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:

	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 sold	20.1		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.