Financial instruments

6 Months Ended

May 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS

We use derivative financial instruments to enhance our ability to manage risk, including foreign currency and interest rate exposures, which exist as part of our ongoing business operations. We do not enter into contracts for trading purposes, nor are we a party to any leveraged derivative instruments. The use of derivative financial instruments is monitored through regular communication with senior management and the use of written guidelines.

In November 2012 and April 2013, we entered into a total of $100 million of forward starting interest rate swap agreements to manage our interest rate risk associated with the anticipated issuance of at least $100 million of fixed rates notes by August 2013. We intend to cash settle these agreements upon issuance of the fixed rate notes thereby effectively locking in the fixed interest rate in effect at the time the swap agreements were initiated. The weighted average fixed rate of these agreements is 1.94%. We have designated these forward starting interest rate swap agreements, which expire on August 28, 2013, as cash flow hedges. The gain or loss on these agreements is deferred in other comprehensive income and will be amortized over the life of the fixed rate notes as a component of interest expense. Hedge ineffectiveness of these agreements was not material.

As of May 31, 2013, the maximum time frame for our foreign exchange forward contracts is 7 months. For all derivatives, the net amount of accumulated other comprehensive income expected to be reclassified in the next 12 months is $0.1 million as an increase to earnings.

All derivatives are recognized at fair value in the balance sheet and recorded in either current or noncurrent other assets or other accrued liabilities or other long-term liabilities depending upon nature and maturity.

The following table discloses the fair values of derivative instruments on our balance sheet (in millions):

As of May 31, 2013	Asset Derivatives					Liability Derivatives
	Balance Sheet Location	Notional Amount		Fair Value		Balance Sheet Location	Notional Amount		Fair Value
Interest rate contracts	Other current assets	$	200.0	$	18.4
Foreign exchange contracts	Other current assets	115.1		1.9		Other accrued liabilities	$	64.5	$	0.6
Total				$	20.3				$	0.6
As of May 31, 2012	Asset Derivatives					Liability Derivatives
	Balance Sheet Location	Notional Amount		Fair Value		Balance Sheet Location	Notional Amount		Fair Value
Interest rate contracts	Other current assets	$	100.0	$	17.9
Foreign exchange contracts	Other current assets	30.3		1.7		Other accrued liabilities	$	142.4	$	2.7
Total				$	19.6				$	2.7
As of November 30, 2012	Asset Derivatives					Liability Derivatives
	Balance Sheet Location	Notional Amount		Fair Value		Balance Sheet Location	Notional Amount		Fair Value
Interest rate contracts	Other current assets	$	100.0	$	16.7	Other accrued liabilities	$	50.0	$	0.1
Foreign exchange contracts	Other current assets	123.1		0.9		Other accrued liabilities	65.7		1.9
Total				$	17.6				$	2.0

The following tables disclose the impact of derivative instruments on our other comprehensive income (OCI), accumulated other comprehensive income (AOCI) and our income statement for the three and six month periods ending May 31, 2013 and 2012 (in millions):

Fair Value Hedges
Derivative	Income statement location	Expense
		For the 3 months ended May 31, 2013		For the 3 months ended May 31, 2012		For the 6 months ended May 31, 2013		For the 6 months ended May 31, 2012
Interest rate contracts	Interest  expense	$	1.3	$	1.2	$	2.5	$	2.4

Cash Flow Hedges –
For the 3 months ended May 31,
Derivative	Gain or (Loss) recognized in OCI					Income statement location	Gain or (Loss) reclassified from AOCI
	2013		2012				2013			2012
Interest rate contracts	$	3.3	$	—		Interest expense	$	(0.4	)	$	(0.4	)
Foreign exchange contracts	0.6		0.5			Cost of goods sold	(0.2		)	0.2
Total	$	3.9	$	0.5			$	(0.6	)	$	(0.2	)
Cash Flow Hedges –
For the 6 months ended May 31,
Derivative	Gain or (Loss) recognized in OCI					Income statement location	Gain or (Loss) reclassified from AOCI
	2013		2012				2013			2012
Interest rate contracts	4.5		$	—		Interest expense	$	(0.7	)	$	(0.7	)
Foreign exchange contracts	2.1		(0.4		)	Cost of goods sold	(0.7		)	0.6
Total	$	6.6	$	(0.4	)		$	(1.4	)	$	(0.1	)

The amount of gain or loss recognized in income on the ineffective portion of derivative instruments is not material. The amounts noted in the tables above for OCI do not include any adjustments for the impact of deferred income taxes.