XML 62 R48.htm IDEA: XBRL DOCUMENT
v3.21.4

Income Taxes (Tables) | 12 Months Ended
--- | ---
Nov. 28, 2021
Income Tax Disclosure [Abstract] |
Schedule of effective income tax rate reconciliation | The Company's income tax (benefit) expense differed from the amount computed by applying the U.S. federal statutory income tax rate to income before income taxes as follows:
| Year Ended
| November 28, 2021 |  | November 29, 2020 |  | November 24, 2019
| (Dollars in thousands)
Income tax expense at U.S. federal statutory rate | $ | 121,851 |  | 21.0 | % |  | $ | (39,855) |  | 21.0 | % |  | $ | 100,293 |  | 21.0 | %
State income taxes, net of U.S. federal impact | 9,012 |  | 1.6 | % |  | (5,246) |  | 2.8 | % |  | 4,496 |  | 1.0 | %
Change in valuation allowance | 2,573 |  | 0.4 | % |  | 18,271 |  | (9.6) | % |  | (81) |  | — | %
Impact of foreign operations, net(1) | (3,650) |  | (0.6) | % |  | (8,868) |  | 4.7 | % |  | 7,132 |  | 1.5 | %
Foreign-derived intangible income benefit ("FDII") | (65,955) |  | (11.4) | % |  | — |  | — | % |  | (11,918) |  | (2.5) | %
Reassessment of tax liabilities | (768) |  | (0.1) | % |  | (1,531) |  | 0.7 | % |  | (6,480) |  | (1.4) | %
Stock-based compensation | (36,871) |  | (6.4) | % |  | (22,332) |  | 11.8 | % |  | (15,730) |  | (3.3) | %
Other, including non-deductible expenses | 507 |  | 0.1 | % |  | 1,547 |  | (0.8) | % |  | 4,892 |  | 1.0 | %
Change in tax law | — |  | — | % |  | (4,628) |  | 2.4 | % |  | — |  | — | %
Total | $ | 26,699 |  | 4.6 | % |  | $ | (62,642) |  | 33.0 | % |  | $ | 82,604 |  | 17.3 | %
___________ (1)Included in the Impact of foreign operations, net are foreign rate differential, Global Intangible Low-Taxed Income ("GILTI") and the tax impact of actual and deemed repatriations of foreign earnings net of foreign tax credits. Fiscal year 2021 also included $15.2 million of net tax benefits related to an international intellectual property transaction.
Schedule of income before income tax, domestic and foreign | The U.S. and foreign components of income before income taxes were as follows:
| Year Ended
| November 28, 2021 |  | November 29, 2020 |  | November 24, 2019
| (Dollars in thousands)
Domestic | $ | 197,460 |  |  | $ | (197,718) |  |  | $ | 120,692 |
Foreign | 382,780 |  |  | 7,935 |  |  | 356,892 |
Total income before income taxes | $ | 580,240 |  |  | $ | (189,783) |  |  | $ | 477,584 |
Schedule of components of income tax expense (benefit) | Income tax expense consisted of the following:
| Year Ended
| November 28, 2021 |  | November 29, 2020 |  | November 24, 2019
| (Dollars in thousands)
U.S. Federal |  |  |  |  |
Current | $ | 12,885 |  |  | $ | 8,396 |  |  | $ | 13,182 |
Deferred | (25,454) |  |  | (79,676) |  |  | (22,319) |
| $ | (12,569) |  |  | $ | (71,280) |  |  | $ | (9,137) |
U.S. State |  |  |  |  |
Current | $ | 7,845 |  |  | $ | 978 |  |  | $ | (2,939) |
Deferred | 1,167 |  |  | (6,435) |  |  | 1,002 |
| $ | 9,012 |  |  | $ | (5,457) |  |  | $ | (1,937) |
Foreign |  |  |  |  |
Current | $ | 93,914 |  |  | $ | 23,228 |  |  | $ | 87,324 |
Deferred | (63,658) |  |  | (9,133) |  |  | 6,354 |
| $ | 30,256 |  |  | $ | 14,095 |  |  | $ | 93,678 |
Consolidated |  |  |  |  |
Current | $ | 114,644 |  |  | $ | 32,602 |  |  | $ | 97,567 |
Deferred | (87,945) |  |  | (95,244) |  |  | (14,963) |
Total income tax expense | $ | 26,699 |  |  | $ | (62,642) |  |  | $ | 82,604 |
Schedule of deferred tax assets and liabilities | The Company's deferred tax assets and deferred tax liabilities were as follows:
| November 28, 2021 |  | November 29, 2020
| (Dollars in thousands)
Deferred tax assets |  |  |
Foreign tax credit carryforwards | $ | 147,817 |  |  | $ | 232,164 |
State net operating loss carryforwards | 12,171 |  |  | 16,054 |
Foreign net operating loss carryforwards | 53,320 |  |  | 58,644 |
Employee compensation and benefit plans | 107,502 |  |  | 102,846 |
Advance royalties | 114,451 |  |  | 10,021 |
Accrued liabilities | 19,301 |  |  | 32,304 |
Sales returns and allowances | 33,958 |  |  | 30,740 |
Inventory | 26,160 |  |  | 25,380 |
Property, plant and equipment | 65,601 |  |  | — |
Unrealized foreign exchange gains or losses | 4,099 |  |  | 18,665 |
Lease liability | 284,591 |  |  | 251,285 |
Other | 22,089 |  |  | 17,898 |
Total gross deferred tax assets | 891,060 |  |  | 796,001 |
Less: Valuation allowance | (45,971) |  |  | (38,543) |
Deferred tax assets, net of valuation allowance | 845,089 |  |  | 757,458 |
Deferred tax liabilities |  |  |
U.S. Branches | (31,140) |  |  | (25,330) |
Residual tax liability on unremitted foreign earnings | (137) |  |  | (7,940) |
Property, plant and equipment | — |  |  | (4,531) |
Right of use asset | (256,606) |  |  | (227,054) |
Total deferred tax liabilities | (287,883) |  |  | (264,855) |
Total net deferred tax assets | $ | 557,206 |  |  | $ | 492,603 |
Summary of valuation allowance | The following table details the changes in valuation allowance during the year ended November 28, 2021:
| Valuation Allowance at November 29, 2020 |  | Changes in Related Gross Deferred Tax Asset |  | Change / (Release) |  | Valuation Allowance at November 28, 2021
| (Dollars in thousands)
Foreign tax credit and U.S. state net operating loss carryforwards | $ | 8,048 |  |  | $ | 1,201 |  |  | $ | — |  |  | $ | 9,249 |
Foreign net operating loss carryforwards and other foreign deferred tax assets | 30,495 |  |  | 3,654 |  |  | 2,573 |  |  | 36,722 |
| $ | 38,543 |  |  | $ | 4,855 |  |  | $ | 2,573 |  |  | $ | 45,971 |
Schedule of unrecognized tax benefits roll forward | The following table reflects the changes to the Company's unrecognized tax benefits for the year ended November 28, 2021 and November 29, 2020:
| November 28, 2021 |  | November 29, 2020
| (Dollars in thousands)
Unrecognized tax benefits beginning balance | $ | 32,286 |  |  | $ | 36,559 |
Increases related to current year tax positions | 1,157 |  |  | 1,575 |
Increases related to tax positions from prior years | 11 |  |  | 262 |
Decreases related to tax positions from prior years | (1,709) |  |  | (889) |
Settlement with tax authorities | (446) |  |  | (4,322) |
Lapses of statutes of limitation | (396) |  |  | (446) |
Other, including foreign currency translation | (249) |  |  | (453) |
Unrecognized tax benefits ending balance | $ | 30,654 |  |  | $ | 32,286 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)(1)(i)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI http://asc.fasb.org/extlink&oid=121610041&loc=d3e36027-109320 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_SummaryOfValuationAllowanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration