Derivatives

Our business is exposed to various market risks, including interest rate and foreign currency risks. We utilize derivative instruments to help us manage these risks. We do not hold or issue derivatives for speculative purposes.

Interest Rate Swaps

To mitigate interest rate exposure on our outstanding revolving facility debt, we utilize interest rate derivative contracts that effectively swap $400 million of floating rate debt at a 2.86 percent weighted-average fixed interest rate, plus the applicable spread on our floating rate debt. We entered into these swap contracts in November 2013 and January 2014, and the contracts expire between May and November 2020.

Because the terms of these swaps and the variable rate debt (as amended or extended over time) coincide, we do not expect any ineffectiveness. We have designated and accounted for these instruments as cash flow hedges, with changes in fair value being deferred in accumulated other comprehensive income/loss (AOCI) in our consolidated balance sheets.

Foreign Currency Forwards

To mitigate foreign currency exposure, we utilize short-term foreign currency forward contracts that manage market risks associated with fluctuations in balances that are denominated in currencies other than the local functional currency. We account for these forward contracts at fair value and recognize the associated realized and unrealized gains and losses in other expense, net, since we have not designated these contracts as hedges for accounting purposes. The following table summarizes the notional amounts of these outstanding foreign currency forward contracts as of May 31, 2016 and November 30, 2015 (in thousands):



	May 31, 2016		November 30, 2015
Notional amount of currency pair:
Contracts to buy USD with CAD	$	71,146	$	—
Contracts to buy CAD with USD	C$	7,676	C$	9,290
Contracts to buy USD with EUR	$	10,283	$	8,508
Contracts to buy CHF with USD	CHF	19,000	CHF	19,000
Contracts to buy GBP with EUR	£	—	£	3,495
Contracts to buy EUR with GBP	€	7,000	€	—
Contracts to buy USD with GBP	$	111,002	$	—
Contracts to buy GBP with USD	£	—	£	7,231

Fair Value of Derivatives

Since our derivative instruments are not listed on an exchange, we have evaluated fair value by reference to similar transactions in active markets; consequently, we have classified all of our derivative instruments within Level 2 of the fair value measurement hierarchy. The following table shows the classification, location, and fair value of our derivative instruments as of May 31, 2016 and November 30, 2015 (in thousands):



	Fair Value of Derivative Instruments				Location on consolidated balance sheets
	May 31, 2016		November 30, 2015		Location on consolidated balance sheets
Assets:
Derivatives not designated as accounting hedges:
Foreign currency forwards	$	1,195	$	51	Other current assets

Liabilities:
Derivatives designated as accounting hedges:
Interest rate swaps	$	26,867	$	24,345	Other accrued expenses and other liabilities
Derivatives not designated as accounting hedges:
Foreign currency forwards	1,090		363		Other accrued expenses
Total	$	27,957	$	24,708

The net (gain) loss on foreign currency forwards that are not designated as hedging instruments for the three and six months ended May 31, 2016 and the three and six months ended May 31, 2015, respectively, was as follows (in thousands):



	Amount of (gain) loss recognized in the consolidated statements of operations
	Three months ended May 31,					Six months ended May 31,					Location on consolidated statements of operations
	2016		2015			2016		2015			Location on consolidated statements of operations
Foreign currency forwards	$	8,746	$	(397	)	$	3,772	$	(960	)	Other expense (income), net

The following table provides information about the cumulative amount of unrecognized hedge losses recorded in AOCI, net of tax, as of May 31, 2016 and May 31, 2015, respectively, as well as the activity on our cash flow hedging instruments for the three and six months ended May 31, 2016 and the three and six months ended May 31, 2015, respectively (in thousands):



	Three months ended May 31,						Six months ended May 31,
	2016			2015			2016			2015
Beginning balance	$	(18,556	)	$	(10,901	)	$	(14,557	)	$	(9,482	)
Amount of gain (loss) recognized in AOCI on derivative:
Interest rate swaps	997			(1,690		)	(4,408		)	(3,495		)
Foreign currency forwards	—			312			—			824
Amount of loss (gain) reclassified from AOCI into income:
Interest rate swaps ⁽¹⁾	1,379			280			2,882			508
Foreign currency forwards ⁽¹⁾	(74		)	(437		)	(171		)	(791		)
Ending balance	$	(16,254	)	$	(12,436	)	$	(16,254	)	$	(12,436	)

(1) Pre-tax amounts reclassified from AOCI into income related to interest rate swaps are recorded in interest expense, and pre-tax amounts reclassified from AOCI into income related to foreign currency forwards are recorded in revenue.

Approximately $8.5 million of the $26.9 million unrecognized pre-tax losses relating to the interest rate swaps are expected to be reclassified into interest expense within the next 12 months.