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Derivative Instruments and Hedging Activities | 3 Months Ended
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Feb. 25, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES As of February 25, 2024, the Company had forward foreign exchange contracts derivatives to buy $663.6 million and to sell $506.7 million in various foreign currencies. These contracts are at various exchange rates and expire at various dates through February 2025. The table below provides data about the carrying values of derivative and non-derivative instruments:
| February 25, 2024 |  | November 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) | $ | 7.2 |  |  | $ | — |  |  | $ | 7.2 |  |  | $ | 6.0 |  |  | $ | — |  |  | $ | 6.0 |
Foreign exchange risk cash flow hedges(2) | — |  |  | (6.9) |  |  | (6.9) |  |  | — |  |  | (7.1) |  |  | (7.1) |
Total | $ | 7.2 |  |  | $ | (6.9) |  |  |  |  | $ | 6.0 |  |  | $ | (7.1) |  |  |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |
Forward foreign exchange contracts(1) | $ | 10.5 |  |  | $ | (7.2) |  |  | $ | 3.3 |  |  | $ | 13.8 |  |  | $ | (6.0) |  |  | $ | 7.8 |
Forward foreign exchange contracts(2) | 6.9 |  |  | (8.0) |  |  | (1.1) |  |  | 7.1 |  |  | (9.1) |  |  | (2.0) |
Total | $ | 17.4 |  |  | $ | (15.2) |  |  |  |  | $ | 20.9 |  |  | $ | (15.1) |  |  |
Non-derivatives designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |
Euro senior notes | $ | — |  |  | $ | (514.0) |  |  |  |  | $ | — |  |  | $ | (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. 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:
| February 25, 2024 |  |  |  |  |  |  | November 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 | $ | 24.6 |  |  | $ | (8.1) |  |  | $ | 16.5 |  |  |  |  |  |  |  | $ | 26.9 |  |  | $ | (13.1) |  |  | $ | 13.8 |
Financial liabilities | (22.0) |  |  | 8.1 |  |  | (13.9) |  |  |  |  |  |  |  | (22.2) |  |  | 13.1 |  |  | (9.1) |
Total |  |  |  |  | $ | 2.6 |  |  |  |  |  |  |  |  |  |  |  | $ | 4.7 |
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 operations:
| Amount of (Loss) Gain Recognized in AOCL (Effective Portion) |  | Amount of Gain (Loss) Reclassified from AOCL into Net (Loss) Income(1)
| As of February 25, 2024 |  | As of November 26, 2023 |  | Three Months Ended |  |
February 25, 2024 |  | February 26, 2023 |  |  |  |
| (Dollars in millions)
Foreign exchange risk contracts | $ | (5.0) |  |  | $ | (15.0) |  |  | $ | (11.3) |  |  | $ | 11.1 |  |  |  |  |
Realized forward foreign exchange swaps(2) | 4.6 |  |  | 4.6 |  |  | — |  |  | — |  |  |  |  |
Yen-denominated Eurobonds | (19.8) |  |  | (19.8) |  |  | — |  |  | — |  |  |  |  |
Euro-denominated senior notes | (27.0) |  |  | (30.8) |  |  | — |  |  | — |  |  |  |  |
Cumulative income taxes | 16.9 |  |  | 19.0 |  |  | — |  |  | — |  |  |  |  |
Total | $ | (30.3) |  |  | $ | (42.0) |  |  |  |  |  |  |  |  |
_____________ (1)Amounts reclassified from AOCL were classified as net revenues or costs of goods sold on the consolidated statements of operations. (2)Prior to and during 2005, 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. There was no hedge ineffectiveness for the three months ended February 25, 2024. Within the next 12 months, a $5.9 million loss from cash flow hedges is expected to be reclassified from AOCL into net (loss) income. The table below presents the effects of the Company’s cash flow hedges of foreign exchange risk contracts on the consolidated statements of operations:
| Three Months Ended |  |
| February 25, 2024 |  | February 26, 2023 |  |  |  |
| (Dollars in millions)
Amount of (Loss) Gain on Cash Flow Hedge Activity |  |  |  |  |  |  |
Net revenues | $ | (1.6) |  |  | $ | 1.6 |  |  |  |  |
Cost of goods sold | $ | (9.7) |  |  | $ | 9.5 |  |  |  |  |
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 operations:
| Three Months Ended |  |
| February 25, 2024 |  | February 26, 2023 |  |  |  |
| (Dollars in millions)
Realized gain(1) | $ | 2.9 |  |  | $ | 9.4 |  |  |  |  |
Unrealized loss | (3.0) |  |  | (5.6) |  |  |  |  |
Total | $ | (0.1) |  |  | $ | 3.8 |  |  |  |  |

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//815/tableOfContent + Details
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