Financial Instruments

3 Months Ended

Feb. 29, 2012

Financial Instruments [Abstract]

Financial Instruments

3. 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 instrument. The use of derivative financial instruments is monitored through regular communication with senior management and the use of written guidelines.

As of February 29, 2012, the maximum time frame for our foreign exchange forward contracts is 8 months. For all derivatives, the net amount of accumulated other comprehensive income expected to be reclassified in the next 12 months is $1.3 million as a reduction of 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):

	liabilities		liabilities		liabilities	liabilities		liabilities		liabilities
As of February 29, 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	$	17.4
Foreign exchange contracts	Other current assets		91.8		1.3	Other accrued liabilities	$	45.5	$	1.0
Total				$	18.7				$	1.0

	liabilities		liabilities		liabilities	liabilities		liabilities		liabilities
As of February 28, 2011
	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	$	14.8
Foreign exchange contracts	Other current assets		64.3		0.7	Other accrued liabilities	$	137.7	$	3.3
Total				$	15.5				$	3.3

	liabilities		liabilities		liabilities	liabilities		liabilities		liabilities
As of November 30, 2011
	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	$	18.9
Foreign exchange contracts	Other current assets		97.4		2.7	Other accrued liabilities	$	30.2	$	0.4
Total				$	21.6				$	0.4

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 quarters ending February 29, 2012 and February 28, 2011 (in millions):

Fair Value Hedges
Derivative	Income statement location	Income or (Expense)
		Feb 2012		Feb 2011
Interest rate contracts	Interest expense	$	1.2	$	1.2

Cash Flow Hedges
Derivative	Gain or (Loss) recognized in OCI						Income statement location	Gain or (Loss) reclassified  from AOCI
	Feb 2012			Feb 2011				Feb 2012			Feb 2011
Terminated interest rate contracts		—			—		Interest expense	$	(0.3	)	$	(0.3	)
Foreign exchange contracts	$	(0.9	)	$	(1.8	)	Cost of goods sold		0.4			(0.6	)
Total	$	(0.9	)	$	(1.8	)		$	0.1		$	(0.9	)

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.