Derivative Financial Instruments (Tables)

6 Months Ended

May 29, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The fair value of derivative instruments on our condensed consolidated balance sheets as of May 29, 2020 and November 29, 2019 were as follows:



(in millions)	2020				2019
	Fair Value Asset Derivatives		Fair Value Liability Derivatives		Fair Value Asset Derivatives		Fair Value Liability Derivatives
Derivatives designated as hedging instruments:
Foreign exchange option contracts^{(1) (2)}	$	32	$	—	$	26	$	—
Treasury lock⁽¹⁾	—		—		—		30
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts⁽¹⁾	6		5		3		3
Total derivatives	$	38	$	5	$	29	$	33

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⁽¹⁾	Fair value asset derivatives are included in prepaid expenses and other current assets and fair value liability derivatives are included in accrued expenses on our condensed consolidated balance sheets.

⁽²⁾

Includes net derivatives gain expected to be recognized into revenue within the next 18 months, of which $5 million is expected within the next 12 months.

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)

Gains (losses) on derivative instruments, net of tax, recognized in our condensed consolidated statements of comprehensive income for the three and six months ended May 29, 2020 and May 31, 2019 were as follows:



	Three Months				Six Months
(in millions)	2020		2019		2020			2019
Derivatives in cash flow hedging relationships:
Foreign exchange option contracts	$	1	$	17	$	3		$	8
Treasury lock	$	—	$	—	$	(1	)	$	—

Schedule of Derivative Instruments, Effect on Statements of Income

The effects of derivative instruments on our condensed consolidated statements of income for the three months ended May 29, 2020 and May 31, 2019 were as follows:



(in millions)	2020								2019
	Revenue		Interest Expense			Other Income (Expense), Net			Revenue		Other Income (Expense), Net
Derivatives in cash flow hedging relationships:
Foreign exchange option contracts⁽¹⁾
Net gain (loss) reclassified from accumulated other comprehensive income into income, net of tax	$	5	$	—		$	—		$	9	$	—
Amount excluded from effectiveness testing and ineffective portion	$	—	$	—		$	—		$	—	$	(12	)
Treasury lock
Net gain (loss) reclassified from accumulated other comprehensive income into income, net of tax	$	—	$	(1	)	$	—		$	—	$	—
Derivatives not designated as hedging relationships:
Foreign exchange forward contracts	$	—	$	—		$	(5	)	$	—	$	3

The effects of derivative instruments on our condensed consolidated statements of income for the six months ended May 29, 2020 and May 31, 2019 were as follows:



(in millions)	2020								2019
	Revenue		Interest Expense			Other Income (Expense), Net			Revenue		Other Income (Expense), Net
Derivatives in cash flow hedging relationships:
Foreign exchange option contracts⁽¹⁾
Net gain (loss) reclassified from accumulated other comprehensive income into income, net of tax	$	12	$	—		$	—		$	17	$	—
Amount excluded from effectiveness testing and ineffective portion	$	—	$	—		$	—		$	—	$	(24	)
Treasury lock
Net gain (loss) reclassified from accumulated other comprehensive income into income, net of tax	$	—	$	(1	)	$	—		$	—	$	—
Derivatives not designated as hedging relationships:
Foreign exchange forward contracts	$	—	$	—		$	(7	)	$	—	$	1

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⁽¹⁾

Starting the third quarter of fiscal 2019, all changes in the fair value of our foreign currency cash flow hedges are recorded in accumulated other comprehensive income.