Financing Arrangements and Financial Instruments

3 Months Ended

Feb. 28, 2026

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financing Arrangements and Financial Instruments

FINANCING ARRANGEMENTS AND FINANCIAL INSTRUMENTS

Debt and Credit Facilities

In January 2026, we entered into a 364-day $500 million revolving credit facility, which will expire in January 2027. The current pricing for the 364-day credit facility, on a fully drawn basis, is Term Secured Overnight Financing Rate (SOFR) plus 1.125%. The pricing of the credit facility is based on a credit rating that contains a fully drawn maximum pricing of the credit facility equal to Term SOFR plus 1.50%. The provisions of the revolving credit facility restrict subsidiary indebtedness and require us to maintain a minimum interest coverage ratio, consistent with our five-year $2.0 billion revolving credit facility (the five-year facility). We do not expect this covenant will limit our access to those facilities for the foreseeable future.

In February 2026, we issued $500 million aggregate principal amount of 4.150% unsecured senior notes due 2029. Interest is payable semiannually in February and August of each year, beginning in August 2026. The net proceeds received from the issuances of these notes of $497.1 million were used to repay a portion of the outstanding $500 million, 0.90% notes due in February 2026.

Derivative Financial Instruments

We use derivative financial instruments to enhance our ability to manage risk, including foreign currency, net investment, commodity, 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 instrument. We are not a party to master netting arrangements, and we do not offset the fair value of derivative contracts with the same counterparty in our financial statement disclosures. The use of derivative financial instruments is monitored through regular communication with senior management and the use of written guidelines.

Foreign currency exchange risk. We are potentially exposed to foreign currency fluctuations affecting net investments in subsidiaries, transactions (both third-party and intercompany), and earnings denominated in foreign currencies. We assess foreign currency risk based on transactional cash flows and translational volatility and may enter into forward contract and currency swaps with highly-rated financial institutions to reduce fluctuations in the long or short currency positions.

The following is a summary of the notional amounts of outstanding foreign currency exchange contracts as of February 28, 2026 and November 30, 2025 (in millions):

	February 28, 2026		November 30, 2025
Fair value hedges	$	888.4	$	877.3
Cash flow hedges	160.4		140.9
Foreign exchange contracts not designated as hedging instruments	72.7		—
Total	$	1,121.5	$	1,018.2

As a matter of policy, all cash flow hedges are designated for hedge accounting on the trade date of the derivative. However, certain cash flow hedges are de-designated at the anticipated transaction date and subsequently marked-to-market through earnings until maturity. For the three months ended February 28, 2026, derivatives not designated as hedging instruments consisted primarily of foreign exchange contracts. Foreign exchange contracts not designated as hedging instruments resulted in a net loss of $2.7 million, recognized in cost of goods sold, reflecting the effect of exchange rate movements associated with purchases denominated in U.S. dollars.

The fair value and cash flow hedges were designated as hedges of foreign currency denominated assets or liabilities or hedges of anticipated purchases denominated in a foreign currency. Hedge ineffectiveness was not material. All foreign currency exchange contracts generally have durations of less than 18 months. At February 28, 2026, $278.0 million of notional contracts had an initial duration of less than one month and are used to hedge short-term cash flow funding.

Contracts which are designated as hedges of foreign currency denominated assets are considered fair value hedges. These foreign currency exchange contracts manage both exposure to currency fluctuations in certain intercompany loans between subsidiaries as well as currency exposure to third-party non-functional currency assets or liabilities. Gains and losses from contracts that are designated as hedges of assets, liabilities, or firm commitments are recognized through income, offsetting the change in fair value of the hedged item. Contracts which are designated as hedges of anticipated purchases denominated in a foreign currency (generally purchases of inventory in U.S. dollars by operating units outside the U.S.) are considered cash flow hedges. The gains and losses on these contracts are deferred in accumulated other comprehensive income until the hedged item is recognized in cost of goods sold, at which time the net amount deferred in accumulated other comprehensive income is also recognized in cost of goods sold. Contracts which are not designated as hedging instruments are marked-to-market, with changes in unrealized gain or loss recorded in earnings.

We also utilize cross currency interest rate swap contracts that are designated as net investment hedges. Any gains or losses on net investment hedges are included in foreign currency translation adjustments in accumulated other comprehensive loss. Net interest accruals excluded from the assessment of hedge effectiveness are included in earnings as interest expense.

Interest rate risk. We finance a portion of our operations with both fixed and variable rate debt instruments, principally commercial paper, notes and bank loans. We utilize interest rate derivative contracts, including interest rate swap agreements, to minimize worldwide financing costs and to achieve a desired mix of variable and fixed rate debt.

Commodity price risk. We purchase certain raw materials which are subject to price volatility caused by weather, market conditions, growing and harvesting conditions, governmental actions, and other factors beyond our control. While future movements of raw material costs are uncertain, we respond to this volatility in a number of ways, including strategic raw material purchases, purchases of raw material for future delivery, and customer price adjustments. With the exception of soybean oil, we generally do not use derivatives to manage price volatility. We utilize commodity contracts, including commodity futures, options, and over-the counter (OTC) swaps to manage price risk for soybean oil. These commodity contracts are designated as cash flow hedges. Generally, we hedge a portion of our anticipated consumption of soybean oil inputs for periods of up to 24 months.

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

	Asset Derivatives					Liability Derivatives
	Balance sheet location	Notional amount		Fair value		Balance sheet location	Notional amount		Fair value
As of February 28, 2026
Derivatives designated as hedging instruments
Interest rate contracts	Other current assets / Other long-term assets	$	—	$	—	Other accrued liabilities / Other long-term liabilities	$	500.0	$	18.6
Foreign exchange contracts	Other current assets	597.0		9.5		Other accrued liabilities	451.8		6.9
Cross currency contracts	Other current assets / Other long-term assets	247.9		3.8		Other accrued liabilities / Other long-term liabilities	782.5		23.2
Commodity contracts	Other current assets / Other long-term assets	240.7		34.3		Other accrued liabilities / Other long-term liabilities	103.4		7.5
Derivatives not designated as hedging instruments
Foreign exchange contracts	Other current assets	8.6		0.1		Other accrued liabilities	64.1		6.2
Total				$	47.7				$	62.4
As of November 30, 2025
Derivatives designated as hedging instruments
Interest rate contracts	Other current assets / Other long-term assets	$	—	$	—	Other accrued liabilities / Other long-term liabilities	$	500.0	$	20.8
Foreign exchange contracts	Other current assets	894.6		6.5		Other accrued liabilities	123.6		0.7
Cross currency contracts	Other current assets / Other long-term assets	500.8		8.5		Other long-term liabilities	511.1		18.1
Total				$	15.0				$	39.6

The following tables disclose the impact of derivative instruments on our other comprehensive income (OCI), accumulated other comprehensive income (AOCI), and our consolidated income statement for the three months ended February 28, 2026 and 2025 (in millions):

Fair Value Hedges
Derivative	Income statement location	Expense
		Three months ended February 28, 2026		Three months ended February 28, 2025
Interest rate contracts	Interest expense	$	2.0	$	3.7

		Gain (loss) recognized in income					Income statement location	Loss recognized in income
Derivative		Three months ended February 28, 2026		Three months ended February 28, 2025		Hedged item		Three months ended February 28, 2026		Three months ended February 28, 2025
Foreign exchange contracts	Other income, net	$	0.9	$	(0.6)	Intercompany loans	Other income, net	$	(1.7)	$	(0.6)

Cash Flow Hedges
	Gain (loss) recognized in OCI				Income statement location	Gain (loss) reclassified from AOCI
Derivative	Three months ended February 28, 2026		Three months ended February 28, 2025			Three months ended February 28, 2026		Three months ended February 28, 2025
Interest rate contracts	$	—	$	—	Interest expense	$	(0.1)	$	(0.1)
Foreign exchange contracts	(1.8)		(0.8)		Cost of goods sold	0.6		(0.1)
Commodity contracts	33.6		—		Cost of goods sold	(1.5)		—
Total	$	31.8	$	(0.8)		$	(1.0)	$	(0.2)

As of February 28, 2026, the net amount of accumulated other comprehensive loss associated with all cash flow, settled interest rate cash flow hedge derivatives, and commodity contracts expected to be reclassified in the next 12 months is a $1.7 million decrease to earnings.

Net Investment Hedges
	Gain (loss) recognized in OCI				Income statement location	Gain excluded from the assessment of hedge effectiveness
Derivative	Three months ended February 28, 2026		Three months ended February 28, 2025			Three months ended February 28, 2026		Three months ended February 28, 2025
Cross currency contracts	$	(9.4)	$	8.1	Interest expense	$	2.0	$	2.5

For all net investment hedges, no amounts have been reclassified out of accumulated other comprehensive loss. The amounts noted in the tables above for OCI do not include any adjustments for the impact of deferred income taxes.

Accounts Receivable Sale Program

We maintain a non recourse accounts receivable sale program whereby certain eligible U.S. receivables are sold to a third-party financial institution in exchange for cash. The program provides us with an additional means for managing liquidity. We account for the transfer of receivables as a sale at the point control is transferred and remove the sold receivables from our condensed consolidated balance sheet. The proceeds from the sales of receivables are included in cash from operating activities in the consolidated statement of cash flows. Under the terms of the arrangement, we act as the collecting agent on behalf of the financial institution for sold receivables of $390.0 million and $430.0 million as of February 28, 2026 and November 30, 2025, respectively. As collecting agent, we had $39.8 million and $45.4 million of cash collected that was not yet remitted to the third-party financial institution as of February 28, 2026 and November 30, 2025, respectively. This obligation is reported within other accrued liabilities on the consolidated balance sheet and within cash flows from financing activities on the consolidated cash flow statement. The incremental costs of factoring receivables under this arrangement were insignificant for the three months ended February 28, 2026 and 2025.