DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

3 Months Ended

12 Months Ended

Feb. 24, 2013

Nov. 25, 2012

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

NOTE 3:    DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

As of February 24, 2013, the Company had forward foreign exchange contracts to buy $660.0 million and to sell $373.1 million against various foreign currencies. These contracts are at various exchange rates and expire at various dates through July 2014.

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

	February 24, 2013								November 25, 2012
	Assets		(Liabilities)						Assets		(Liabilities)
	Carrying Value		Carrying Value			Derivative Net Carrying Value			Carrying Value		Carrying Value			Derivative Net Carrying Value
	(Dollars in thousands)
Derivatives not designated as hedging instruments
Forward foreign exchange contracts(1)	$	11,639	$	(2,483	)	$	9,156		$	7,131	$	(1,339	)	$	5,792
Forward foreign exchange contracts(2)		2,554		(8,970	)		(6,416	)		5,183		(8,201	)		(3,018	)
Total	$	14,193	$	(11,453	)				$	12,314	$	(9,540	)
Non-derivatives designated as hedging instruments
4.25% Yen-denominated Eurobonds due 2016	$	—	$	(24,919	)				$	—	$	(28,135	)
7.75% Euro senior notes due 2018		—		(395,670	)					—		(386,520	)
Total	$	—	$	(420,589	)				$	—	$	(414,655	)

(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, net” in the Company’s consolidated statements of income:

	Gain or (Loss) Recognized in AOCI (Effective Portion)						Gain or (Loss) Recognized in Other Income, net (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	As of February 24, 2013			As of November 25, 2012			Three Months Ended
							February 24, 2013		February 26, 2012
	(Dollars in thousands)
Forward foreign exchange contracts	$	4,637		$	4,637
4.25% Yen-denominated Eurobonds due 2016		(23,070	)		(26,285	)	$	2,328	$	2,606
7.75% Euro senior notes due 2018		(18,601	)		(9,451	)		—		—
Cumulative income taxes		14,543			12,246
Total	$	(22,491	)	$	(18,853	)

The table below provides data about the amount of gains and losses related to derivatives not designated as hedging instruments included in “Other income, net” in the Company’s consolidated statements of income:

	Gain or (Loss)
	Three Months Ended
	February 24, 2013			February 26, 2012
	(Dollars in thousands)
Forward foreign exchange contracts:
Realized	$	(2,710	)	$	(3,485	)
Unrealized		(109	)		(11,767	)
Total	$	(2,819	)	$	(15,252	)

NOTE 5:    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)						Assets		(Liabilities)			Derivative Net Carrying Value
	Carrying Value		Carrying Value			Derivative Net 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 November 25, 2012			As of November 27, 2011			Year Ended
							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	)