Fair Value of Financial Instruments

6 Months Ended

May 27, 2012

The following table presents the Company’s financial instruments that are carried at fair value:



	May 27, 2012						November 27, 2011
			Fair Value Estimated Using						Fair Value Estimated Using
	Fair Value		Level 1 Inputs⁽¹⁾		Level 2 Inputs⁽²⁾		Fair Value		Level 1 Inputs⁽¹⁾		Level 2 Inputs⁽²⁾
	(Dollars in thousands)
Financial assets carried at fair value
Rabbi trust assets	$	18,811	$	18,811	$	—	$	18,064	$	18,064	$	—
Forward foreign exchange contracts, net⁽³⁾	32,382		—		32,382		25,992		—		25,992
Total	$	51,193	$	18,811	$	32,382	$	44,056	$	18,064	$	25,992
Financial liabilities carried at fair value
Forward foreign exchange contracts, net⁽³⁾	$	8,163	$	—	$	8,163	$	5,256	$	—	$	5,256
Total	$	8,163	$	—	$	8,163	$	5,256	$	—	$	5,256

_____________


(1)	Fair values estimated using Level 1 inputs are inputs which consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Rabbi trust assets consist of a diversified portfolio of equity, fixed income and other securities.

(2)

Fair values estimated using Level 2 inputs are inputs, other than quoted prices, that are observable for the asset or liability, either directly or indirectly and include among other things, quoted prices for similar assets or liabilities in markets that are active or inactive as well as inputs other than quoted prices that are observable. For forward foreign exchange contracts, inputs include foreign currency exchange and interest rates and, where applicable, credit default swap prices.


(3)	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.

The following table presents the carrying value — including accrued interest — and estimated fair value of the Company’s financial instruments that are carried at adjusted historical cost:



	May 27, 2012				November 27, 2011
	Carrying Value		Estimated Fair Value⁽¹⁾		Carrying Value		Estimated Fair Value⁽¹⁾
	(Dollars in thousands)
Financial liabilities carried at adjusted historical cost
Senior revolving credit facility	$	30,035	$	29,960	$	200,267	$	199,767
Senior term loan due 2014	324,853		317,558		324,663		316,562
8.875% senior notes due 2016	—		—		354,918		366,293
4.25% Yen-denominated Eurobonds due 2016	50,411		47,584		118,618		102,508
7.75% Euro senior notes due 2018	377,014		377,014		401,495		381,478
7.625% senior notes due 2020	526,446		557,946		526,446		519,883
6.875% senior notes due 2022	386,470		387,433		—		—
Short-term borrowings	66,370		66,370		54,975		54,975
Total	$	1,761,599	$	1,783,865	$	1,981,382	$	1,941,466

_____________


(1)	Fair value estimate incorporates mid-market price quotes.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

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+ Details