Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 01, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The fair value of derivative instruments on our condensed consolidated balance sheets as of September 1, 2017 and December 2, 2016 were as follows (in thousands):



	2017				2016
	Fair Value Asset Derivatives		Fair Value Liability Derivatives		Fair Value Asset Derivatives		Fair Value Liability Derivatives
Derivatives designated as hedging instruments:
Foreign exchange option contracts^{(1) (3)}	$	9,487	$	—	$	34,355	$	—
Interest rate swap ⁽²⁾	7,564		—		13,117		—
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts ⁽¹⁾	2,072		1,410		3,757		5,246
Total derivatives	$	19,123	$	1,410	$	51,229	$	5,246

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⁽¹⁾	Included in prepaid expenses and other current assets and accrued expenses for asset derivatives and liability derivatives, respectively, on our condensed consolidated balance sheets.


⁽²⁾	Included in other assets or other liabilities on our condensed consolidated balance sheets.


⁽³⁾	Hedging effectiveness expected to be recognized into income within the next twelve months.

Effect of Derivative Instruments as Designated Cash Flow Hedges and Not Designated as Hedges

The effect of foreign currency derivative instruments designated as cash flow hedges and of foreign currency derivative instruments not designated as hedges in our condensed consolidated statements of income for the three and nine months ended September 1, 2017 was as follows (in thousands):



	Three Months					Nine Months
	Foreign Exchange Option Contracts			Foreign Exchange Forward Contracts		Foreign Exchange Option Contracts			Foreign Exchange Forward Contracts
Derivatives in cash flow hedging relationships:
Net gain (loss) recognized in OCI, net of tax⁽¹⁾	$	1,483		$	—	$	3,613		$	—
Net gain (loss) reclassified from accumulated OCI into income, net of tax⁽²⁾	$	221		$	—	$	31,845		$	—
Net gain (loss) recognized in income⁽³⁾	$	(6,190	)	$	—	$	(21,842	)	$	—
Derivatives not designated as hedging relationships:
Net gain (loss) recognized in income⁽⁴⁾	$	—		$	2,920	$	—		$	6,456



	Three Months					Nine Months
	Foreign Exchange Option Contracts			Foreign Exchange Forward Contracts		Foreign Exchange Option Contracts			Foreign Exchange Forward Contracts
Derivatives in cash flow hedging relationships:
Net gain (loss) recognized in OCI, net of tax⁽¹⁾	$	13,233		$	—	$	9,089		$	—
Net gain (loss) reclassified from accumulated OCI into income, net of tax⁽²⁾	$	3,904		$	—	$	10,732		$	—
Net gain (loss) recognized in income⁽³⁾	$	(7,733	)	$	—	$	(19,242	)	$	—
Derivatives not designated as hedging relationships:
Net gain (loss) recognized in income⁽⁴⁾	$	—		$	1,368	$	—		$	(1,335	)

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⁽¹⁾	Net change in the fair value of the effective portion classified in other comprehensive income (“OCI”).


⁽²⁾	Effective portion classified as revenue.


⁽³⁾	Ineffective portion and amount excluded from effectiveness testing classified in interest and other income (expense), net.


⁽⁴⁾	Classified in interest and other income (expense), net.