v3.24.3
Derivative Instruments and Hedging Activities (Tables)
 9 Months Ended
Aug. 25, 2024
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: 
 August 25, 2024November 26, 2023
 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)
$7.9 $— $7.9 $6.0 $— $6.0 
Foreign exchange risk cash flow hedges(2)
— (8.8)(8.8)— (7.1)(7.1)
Total
$7.9 $(8.8)$6.0 $(7.1)
Derivatives not designated as hedging instruments
Forward foreign exchange contracts(1)
$11.4 $(7.9)$3.5 $13.8 $(6.0)$7.8 
Forward foreign exchange contracts(2)
8.8 (13.2)(4.4)7.1 (9.1)(2.0)
Total
$20.2 $(21.1)$20.9 $(15.1)
Non-derivatives designated as hedging instruments
Euro senior notes
$— $(527.8)$— $(517.8)
_____________
(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 "Long-term employee related benefits and other 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:
August 25, 2024November 26, 2023
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$28.1 $(13.4)$14.7 $26.9 $(13.1)$13.8 
Financial liabilities(29.9)13.4 (16.5)(22.2)13.1 (9.1)
Total$(1.8)$4.7 
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, net” in the Company’s consolidated statements of income:
 
Amount of (Loss) Gain
Recognized in AOCL
(Effective Portion)
Amount of (Loss) Gain Reclassified from
 AOCL into Net Income(1)
 
As of
August 25,
2024
As of
November 26,
 2023
Three Months EndedNine Months Ended
August 25,
2024		August 27,
2023		August 25,
2024		August 27,
2023
 (Dollars in millions)
Foreign exchange risk contracts$(0.1)$(15.0)$(0.2)$3.4 $(18.2)$28.1 
Realized forward foreign exchange swaps(2)
4.6 4.6 — — — — 
Yen-denominated Eurobonds(19.8)(19.8)— — — — 
Euro-denominated senior notes(40.6)(30.8)— — — — 
Cumulative income taxes17.9 19.0 — — — — 
Total$(38.0)$(42.0)
_____________
(1)Amounts reclassified from AOCL were classified as net revenues or costs of goods sold on the consolidated statements of income.
(2)Prior to 2006, the Company used foreign exchange currency swaps to hedge the net investment in its foreign operations. For hedges that qualified for hedge accounting, the net gains were included in AOCL and are not reclassified to earnings until the related net investment position has been liquidated.
Gains and losses included in statements of income
The table below presents the effects of the Company’s cash flow hedges of foreign exchange risk contracts on the consolidated statements of income:
Three Months EndedNine Months Ended
August 25,
2024		August 27,
2023		August 25,
2024		August 27,
2023
(Dollars in millions)
Amount of (Loss) Gain on Cash Flow Hedge Activity
Net revenues$(1.2)$(0.5)$(4.0)$1.9 
Cost of goods sold$1.0 $3.9 $(14.2)$26.3 
The table below provides data about the amount of gains and losses related to derivatives instruments included in “Other expense, net” in the Company’s consolidated statements of income:
 Three Months EndedNine Months Ended
 August 25,
2024		August 27,
2023		August 25,
2024		August 27,
2023
 (Dollars in millions)
Realized (loss) gain(1)
$(1.0)$1.7 $8.3 $24.3 
Unrealized (loss) gain
(0.1)3.1 (6.5)(3.7)
Total$(1.1)$4.8 $1.8 $20.6 
_____________
(1)Realized (losses) gains related to derivatives instruments were classified as Other, net on the Company’s consolidated statements of cash flows.