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Income Taxes (Tables)

12 Months Ended

Nov. 26, 2023

Income Tax Disclosure [Abstract]

Schedule of effective income tax rate reconciliation

The Company's income tax expense (benefit) 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 26, 2023									November 27, 2022									November 28, 2021
			(Dollars in millions)
Income tax expense (benefit) at U.S. federal statutory rate			$	55.7		21.0		%				$	136.4		21.0		%				$	121.9		21.0		%
State income taxes, net of U.S. federal impact			1.3			0.5		%				14.5			2.2		%				9.0			1.6		%
Change in valuation allowance			(2.0)			(0.8)		%				(0.5)			(0.1)		%				2.6			0.4		%
Impact of foreign operations, net(1)			14.3			5.4		%				29.6			4.6		%				11.5			2.0		%
Foreign-derived intangible income benefit ("FDII")			(55.9)			(21.1)		%				(29.8)			(4.6)		%				(66.0)			(11.4)		%
Reassessment of tax liabilities			(0.6)			(0.2)		%				(7.5)			(1.2)		%				(0.8)			(0.1)		%
International intellectual property transaction			—			—		%				(55.1)			(8.5)		%				(15.1)			(2.6)		%
Stock-based compensation			6.6			2.5		%				(5.0)			(0.8)		%				(36.9)			(6.4)		%
Other, including non-deductible expenses			(3.8)			(1.4)		%				(2.1)			(0.2)		%				0.5			0.1		%
Total			$	15.6		5.9		%				$	80.5		12.4		%				$	26.7		4.6		%

___________

(1)Included in 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. This also includes an immaterial amount of non-deductible charges related to the Russia-Ukraine crisis in fiscal year 2022.

Schedule of income before income tax, domestic and foreign

The U.S. and foreign components of income (loss) before income taxes were as follows:

			Year Ended
			November 26, 2023						November 27, 2022						November 28, 2021
			(Dollars in millions)
Domestic			$	(164.7)					$	171.1					$	197.4
Foreign			429.9						478.5						382.8
Total income before income taxes			$	265.2					$	649.6					$	580.2

Schedule of components of income tax expense (benefit)

Income tax expense (benefit) consisted of the following:

			Year Ended
			November 26, 2023						November 27, 2022						November 28, 2021
			(Dollars in millions)
U.S. Federal
Current			$	14.4					$	15.3					$	12.9
Deferred			(91.5)						46.1						(25.5)
			$	(77.1)					$	61.4					$	(12.6)
U.S. State
Current			$	11.3					$	14.6					$	7.8
Deferred			(9.7)						(6.3)						1.2
			$	1.6					$	8.3					$	9.0
Foreign
Current			$	94.2					$	110.4					$	93.9
Deferred			(3.0)						(99.6)						(63.6)
			$	91.2					$	10.8					$	30.3
Consolidated
Current			$	119.9					$	140.3					$	114.6
Deferred			(104.3)						(59.8)						(87.9)
Total income tax expense			$	15.6					$	80.5					$	26.7

Schedule of deferred tax assets and liabilities

The Company's deferred tax assets and deferred tax liabilities were as follows:

			November 26, 2023						November 27, 2022
			(Dollars in millions)
Deferred tax assets
Foreign tax credit carryforwards			$	28.3					$	104.2
State net operating loss carryforwards			10.7						14.9
Foreign net operating loss carryforwards			40.1						47.6
Employee compensation and benefit plans			79.4						97.2
Advance royalties			185.1						87.1
Prepaid services			57.9						—
Accrued liabilities			17.3						16.8
Sales returns and allowances			35.0						31.6
Inventory			31.2						36.9
Intangibles			199.1						172.5
Lease liability			297.6						276.7
Other			74.2						50.8
Total gross deferred tax assets			1,055.9						936.3
Less: Valuation allowance			(47.4)						(49.7)
Deferred tax assets, net of valuation allowance			1,008.5						886.6
Deferred tax liabilities
U.S. Branches			(25.9)						(32.4)
Right of use asset			(262.2)						(244.0)
Total deferred tax liabilities			(288.1)						(276.4)
Total net deferred tax assets			$	720.4					$	610.2

Summary of valuation allowance

The following table details the changes in valuation allowance during the year ended November 26, 2023:

			Valuation Allowance at November 27, 2022						Changes in Related Gross Deferred Tax Asset						Change / (Release)						Valuation Allowance at November 26, 2023
			(Dollars in millions)
Foreign tax credit and U.S. state net operating loss carryforwards			$	8.6					$	7.2					$	—					$	15.8
Foreign net operating loss carryforwards and other foreign deferred tax assets			41.0						(7.4)						(2.0)						31.6
			$	49.6					$	(0.2)					$	(2.0)					$	47.4

Schedule of unrecognized tax benefits roll forward

The following table reflects the changes to the Company's unrecognized tax benefits:

			November 26, 2023						November 27, 2022						November 28, 2021
			(Dollars in millions)
Unrecognized tax benefits beginning balance			$	38.1					$	30.7					$	32.3
Increases related to current year tax positions			4.1						10.2						1.1
Increases related to tax positions from prior years			1.9						0.1						—
Decreases related to tax positions from prior years			—						(0.3)						(1.7)
Settlement with tax authorities			(1.7)						(1.5)						(0.4)
Lapses of statutes of limitation			(0.2)						(0.8)						(0.4)
Other, including foreign currency translation			0.1						(0.3)						(0.2)
Unrecognized tax benefits ending balance			$	42.3					$	38.1					$	30.7

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