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Income Taxes (Tables) | 12 Months Ended
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Dec. 01, 2024
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
| December 1, 2024 |  | November 26, 2023 |  | November 27, 2022
| (Dollars in millions)
Income tax expense (benefit) at U.S. federal statutory rate | $ | 46.0 |  | 21.0 | % |  | $ | 55.7 |  | 21.0 | % |  | $ | 136.4 |  | 21.0 | %
State income taxes, net of U.S. federal impact | (4.5) |  | (2.1) | % |  | 1.3 |  | 0.5 | % |  | 14.5 |  | 2.2 | %
Change in valuation allowance | (0.5) |  | (0.2) | % |  | (2.0) |  | (0.8) | % |  | (0.5) |  | (0.1) | %
Impact of foreign operations, net(1) | 26.9 |  | 12.3 | % |  | 14.3 |  | 5.4 | % |  | 29.6 |  | 4.6 | %
Foreign-derived intangible income benefit ("FDII") | (6.5) |  | (3.0) | % |  | (55.9) |  | (21.1) | % |  | (29.8) |  | (4.6) | %
Reassessment of tax liabilities | (11.0) |  | (5.0) | % |  | (0.6) |  | (0.2) | % |  | (7.5) |  | (1.2) | %
International intellectual property transaction | (45.9) |  | (21.0) | % |  | — |  | — | % |  | (55.1) |  | (8.5) | %
Stock-based compensation | 3.7 |  | 1.7 | % |  | 6.6 |  | 2.5 | % |  | (5.0) |  | (0.8) | %
Other, including non-deductible expenses | 0.2 |  | 0.1 | % |  | (3.8) |  | (1.4) | % |  | (2.1) |  | (0.2) | %
Total | $ | 8.4 |  | 3.8 | % |  | $ | 15.6 |  | 5.9 | % |  | $ | 80.5 |  | 12.4 | %
___________ (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 war 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
| December 1, 2024 |  | November 26, 2023 |  | November 27, 2022
| (Dollars in millions)
Domestic | $ | (126.8) |  |  | $ | (164.7) |  |  | $ | 171.1 |
Foreign | 345.8 |  |  | 429.9 |  |  | 478.5 |
Total income before income taxes | $ | 219.0 |  |  | $ | 265.2 |  |  | $ | 649.6 |
Schedule of components of income tax expense (benefit) | Income tax expense (benefit) consisted of the following:
| Year Ended
| December 1, 2024 |  | November 26, 2023 |  | November 27, 2022
| (Dollars in millions)
U.S. Federal |  |  |  |  |
Current | $ | 13.7 |  |  | $ | 14.4 |  |  | $ | 15.3 |
Deferred | 4.7 |  |  | (91.5) |  |  | 46.1 |
| $ | 18.4 |  |  | $ | (77.1) |  |  | $ | 61.4 |
U.S. State |  |  |  |  |
Current | $ | 0.9 |  |  | $ | 11.3 |  |  | $ | 14.6 |
Deferred | (14.9) |  |  | (9.7) |  |  | (6.3) |
| $ | (14.0) |  |  | $ | 1.6 |  |  | $ | 8.3 |
Foreign |  |  |  |  |
Current | $ | 84.9 |  |  | $ | 94.2 |  |  | $ | 110.4 |
Deferred | (80.9) |  |  | (3.0) |  |  | (99.6) |
| $ | 4.0 |  |  | $ | 91.2 |  |  | $ | 10.8 |
Consolidated |  |  |  |  |
Current | $ | 99.5 |  |  | $ | 119.9 |  |  | $ | 140.3 |
Deferred | (91.1) |  |  | (104.3) |  |  | (59.8) |
Total income tax expense | $ | 8.4 |  |  | $ | 15.6 |  |  | $ | 80.5 |
Schedule of deferred tax assets and liabilities | The Company's deferred tax assets and deferred tax liabilities were as follows:
| December 1, 2024 |  | November 26, 2023
| (Dollars in millions)
Deferred tax assets |  |  |
Foreign tax credit carryforwards | $ | 26.1 |  |  | $ | 28.3 |
State net operating loss carryforwards | 15.7 |  |  | 10.7 |
Foreign net operating loss carryforwards | 32.8 |  |  | 40.1 |
Employee compensation and benefit plans | 87.5 |  |  | 79.4 |
Advance royalties | 158.8 |  |  | 185.1 |
Prepaid services | 46.5 |  |  | 57.9 |
Accrued liabilities | 35.9 |  |  | 17.3 |
Sales returns and allowances | 39.0 |  |  | 35.0 |
Inventory | 32.7 |  |  | 31.2 |
Intangibles | 275.1 |  |  | 199.1 |
Property, plant and equipment (1) | 32.4 |  |  | 30.7 |
Lease liability | 288.7 |  |  | 297.6 |
Other (1) | 65.2 |  |  | 43.5 |
Total gross deferred tax assets | 1,136.4 |  |  | 1,055.9 |
Less: Valuation allowance | (52.9) |  |  | (47.4) |
Deferred tax assets, net of valuation allowance | 1,083.5 |  |  | 1,008.5 |
Deferred tax liabilities |  |  |
U.S. Branches | (40.1) |  |  | (25.9) |
Right of use asset | (259.4) |  |  | (262.2) |
Total deferred tax liabilities | (299.5) |  |  | (288.1) |
Total net deferred tax assets | $ | 784.0 |  |  | $ | 720.4 |
_____________ (1)Fiscal year 2023 amounts have been conformed to the fiscal year 2024 presentation.
Summary of valuation allowance | The following table details the changes in valuation allowance during the year ended December 1, 2024:
| Valuation Allowance at November 26, 2023 |  | Changes in Related Gross Deferred Tax Asset |  | Change / (Release) |  | Valuation Allowance at December 1, 2024
| (Dollars in millions)
Foreign tax credit and U.S. state net operating loss carryforwards | $ | 15.8 |  |  | $ | 5.1 |  |  | $ | — |  |  | $ | 20.9 |
Foreign net operating loss carryforwards and other foreign deferred tax assets | 31.6 |  |  | 0.8 |  |  | (0.4) |  |  | 32.0 |
| $ | 47.4 |  |  | $ | 5.9 |  |  | $ | (0.4) |  |  | $ | 52.9 |
Schedule of unrecognized tax benefits roll forward | The following table reflects the changes to the Company's unrecognized tax benefits:
| December 1, 2024 |  | November 26, 2023 |  | November 27, 2022
| (Dollars in millions)
Unrecognized tax benefits beginning balance | $ | 42.3 |  |  | $ | 38.1 |  |  | $ | 30.7 |
Increases related to current year tax positions | 4.2 |  |  | 4.1 |  |  | 10.2 |
Increases related to tax positions from prior years | 0.7 |  |  | 1.9 |  |  | 0.1 |
Decreases related to tax positions from prior years | (3.6) |  |  | — |  |  | (0.3) |
Settlement with tax authorities | (0.7) |  |  | (1.7) |  |  | (1.5) |
Lapses of statutes of limitation | — |  |  | (0.2) |  |  | (0.8) |
Other, including foreign currency translation | (0.2) |  |  | 0.1 |  |  | (0.3) |
Unrecognized tax benefits ending balance | $ | 42.7 |  |  | $ | 42.3 |  |  | $ | 38.1 |

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