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DERIVATIVE INSTRUMENTS | 6 Months Ended
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May 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS: In the ordinary course of business, the Company is exposed to foreign currency risk and credit risk. The Company enters into transactions, and owns monetary assets and liabilities, that are denominated in currencies other than the legal entity’s functional currency. The Company may enter into forward contracts, option contracts, or other derivative instruments to offset a portion of the risk on expected future cash flows, earnings, net investments in certain non-U.S. legal entities and certain existing assets and liabilities. However, the Company may choose not to hedge certain exposures for a variety of reasons including, but not limited to, accounting considerations and the economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign currency exchange or interest rates. Generally, the Company does not use derivative instruments to cover equity risk and credit risk. The Company’s hedging program is not used for trading or speculative purposes. All derivatives are recognized on the consolidated balance sheets at their fair values. Changes in the fair value of derivatives are recorded in the consolidated statements of operations, or as a component of AOCL in the consolidated balance sheets, as discussed below. The cash flow effects of the Company’s cash flow and fair value derivative instruments are reflected in operating activities on the consolidated statements of cash flows. Cash Flow Hedges To mitigate the impact on gross margins from fluctuations in foreign currency exchange rates, certain of the Company’s legal entities with functional currencies that are not U.S. dollars may hedge a portion of forecasted revenue or costs not denominated in the entities’ functional currencies. These instruments mature at various dates through May 2028. Gains and losses on cash flow hedges are recorded in AOCL until the hedged item is recognized in earnings. Deferred gains and losses related to cash flow hedges of foreign currency costs are recognized as a component of “Cost of revenue” or “Selling, general and administrative expenses” in the same period as the related costs are recognized. Derivative instruments designated as cash flow hedges must be de-designated as hedges when it is probable the forecasted hedged transaction will not occur in the initially identified time period or within a subsequent two-month time period. Deferred gains and losses in AOCL associated with such derivative instruments are reclassified into earnings in the period of de-designation. Any subsequent changes in fair value of such derivative instruments are recorded in earnings unless they are re-designated as hedges of other transactions. Non-Designated Derivatives The Company uses short-term forward contracts to offset the foreign exchange risk of assets and liabilities denominated in currencies other than the functional currencies of the Company’s legal entities that own the assets or liabilities. These contracts, which are not designated as hedging instruments, mature or settle within twelve months. Derivatives that are not designated as hedging instruments are adjusted to fair value through earnings in the financial statement line item to which the derivative relates. Interest rate swaps and cross-currency interest rate swaps In fiscal year 2023, the Company entered into cross-currency swap arrangements with certain financial institutions for a total notional amount of $500,000, which represented $250,000 aggregate principal amount of the Company’s 6.650% Senior Notes due 2026 and $250,000 aggregate principal amount of the Company’s 6.600% Senior Notes due 2028. As part of the senior notes refinancing that occurred in February 2026 (as further described in Note 8), the Company extended cross-currency swap arrangements with certain financial institutions for a total notional amount equivalent to $250,000 aggregate principal amount of the Company’s 6.500% Senior Notes due in 2029 (previously associated with $250,000 aggregate principal amount of the Company’s 6.650% Senior Notes due 2026). In addition to aligning the currency of a portion of the Company’s interest payments to the Company’s euro-denominated cash flows, the arrangements, together with intercompany loans and additional intercompany cross-currency interest rate swap arrangements, effectively converted $250,000 aggregate principal amount of the Company’s 6.600% Senior Notes due 2028 and $250,000 aggregate principal amount of the Company’s 6.500% Senior Notes due 2029 into synthetic fixed euro-based debt, both at weighted average interest rates of 5.18%. The cross-currency interest rate swaps are designated as fair value hedges. In September 2025, in connection with the issuance of delayed draw term loans in the total principal amount of $750,000, the Company entered into an interest rate swap to fix the interest component associated with this debt, creating synthetic fixed-rate debt. Concurrent with entering into the interest rate swaps, the Company entered into cross-currency swap arrangements with certain financial institutions for a total notional amount equivalent to $750,000. In addition to aligning the currency of the Company’s interest payments to the Company’s euro-denominated cash flows, the arrangements, together with intercompany loans and additional intercompany cross-currency interest rate swap arrangements, effectively converted the delayed draw term loans into synthetic fixed euro-based debt at weighted average interest rates of 3.43% for the three-year term loan and 3.69% for the five-year term loan. The interest rate swap is designated as a cash flow hedge and the cross-currency swaps are designated as fair value hedges. Fair Values of Derivative Instruments in the Consolidated Balance Sheets The fair values of the Company’s derivative instruments are disclosed in Note 7—Fair Value Measurements and summarized in the table below:
|  | Value as of
Balance Sheet Line Item |  | May 31, 2026 |  | November 30, 2025
Derivative instruments designated as fair value hedges: |  |  |  |
Cross-currency interest rate swaps (notional value) |  | $ | 1,104,692 |  |  | $ | 1,112,706 |
Other assets |  | 274 |  |  | 5,343 |
Other current liabilities and other long-term liabilities |  | 56,960 |  |  | 49,319 |
Derivative instruments designated as cash flow hedges: |  |  |  |
Interest rate swaps (notional value) |  | $ | 740,625 |  |  | $ | 750,000 |
Other long-term assets |  | 9,460 |  |  | — |
Other long-term liabilities |  | — |  |  | 3,357 |
Foreign exchange forward contracts (notional value) |  | $ | 1,043,195 |  |  | $ | 1,049,896 |
Other current assets and other assets |  | 307 |  |  | 914 |
Other accrued liabilities and other long-term liabilities |  | 53,877 |  |  | 21,424 |
Volume of activity The notional amounts of foreign exchange forward contracts represent the gross amounts of foreign currency, including, principally, the Philippine peso and the Indian rupee, that will be bought or sold at maturity. The notional amounts for outstanding derivative instruments provide one measure of the transaction volume outstanding and do not represent the amount of the Company’s exposure to credit or market loss. The Company’s exposure to credit loss and market risk will vary over time as currency exchange rates change. The Effect of Derivative Instruments on AOCL and the Consolidated Statements of Operations The following table shows the location of the gains and losses, before taxes, of the Company’s derivative instruments designated as cash flow hedges, fair value hedges, and not designated as hedging instruments in other comprehensive income (loss) (“OCI”), and the consolidated statements of operations for the periods presented:
|  |  | Three Months Ended |  | Six Months Ended
| Locations of gain (loss) in statement of operations |  | May 31, 2026 |  | May 31, 2025 |  | May 31, 2026 |  | May 31, 2025
Derivative instruments designated as cash flow and fair value hedges: |  |  |  |  |  |  |  |  |
Gains (losses) recognized in OCI: |  |  |  |  |  |  |  |  |
Foreign exchange forward contracts |  |  | $ | (57,695) |  |  | $ | 39,107 |  |  | $ | (49,968) |  |  | $ | 35,881 |
Cross-currency interest rate swaps |  |  | (5,062) |  |  | (3,012) |  |  | (5,646) |  |  | 682 |
Interest rate swaps |  |  | 14,525 |  |  | — |  |  | 12,817 |  |  | — |
Total |  |  | $ | (48,232) |  |  | $ | 36,095 |  |  | $ | (42,797) |  |  | $ | 36,563 |
Gains (losses) reclassified from AOCL into income: |  |  |  |  |  |  |  |  |
Foreign exchange forward contracts |  |  |  |  |  |  |  |  |
Gain (loss) reclassified from AOCL into income | Cost of revenue |  | $ | (7,907) |  |  | $ | 442 |  |  | $ | (11,854) |  |  | $ | (4,140) |
Gain (loss) reclassified from AOCL into income | Selling, general and administrative expenses |  | (3,191) |  |  | 113 |  |  | (5,055) |  |  | (1,453) |
Total |  |  | $ | (11,098) |  |  | $ | 555 |  |  | $ | (16,909) |  |  | $ | (5,593) |
Derivative instruments not designated as hedging instruments: |  |  |  |  |  |  |  |  |
Gain (loss) recognized from foreign exchange forward contracts, net (1) | Other expense (income), net |  | $ | — |  |  | $ | (8,322) |  |  | $ | — |  |  | $ | 740 |
(1) The gains and losses largely offset the currency gains and losses that resulted from changes in the assets and liabilities denominated in nonfunctional currencies. There were no material gain or loss amounts excluded from the assessment of effectiveness. Existing net losses in AOCL that are expected to be reclassified into earnings in the normal course of business within the next twelve months are $28,098. Offsetting of Derivatives In the consolidated balance sheets, the Company does not offset derivative assets against liabilities in master netting arrangements. Credit exposure for derivative financial instruments is limited to the amounts, if any, by which the counterparties’ obligations under the contracts exceed the Company’s obligations to the counterparties. The Company manages the potential risk of credit losses by selecting counterparties from a limited group of financial institutions with high credit standing.

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