Derivative Financial Instruments (Tables)

9 Months Ended

Aug. 28, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The fair value of derivative instruments on our condensed consolidated balance sheets as of August 28, 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⁾	$	11	$	—	$	26	$	—
Treasury lock⁽¹⁾	—		—		—		30

Derivatives not designated as hedging instruments:
Foreign exchange forward contracts⁽¹⁾	18		5		3		3
Total derivatives	$	29	$	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.

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 nine months ended August 28, 2020 and August 30, 2019 were as follows:


	Three Months						Nine Months
(in millions)	2020		2019		2020		2019
Derivatives in cash flow hedging relationships:
Foreign exchange option contracts	$	(33)	$	16	$	(30)	$	35
Treasury lock	$	—	$	(43)	$	(1)	$	(43)

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 August 28, 2020 and August 30, 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	$	(1)	$	—	$	—	$	10	$	—

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 option contracts	$	—	$	—	$	—	$	1	$	—
Foreign exchange forward contracts	$	—	$	—	$	12	$	—	$	(1)

The effects of derivative instruments on our condensed consolidated statements of income for the nine months ended August 28, 2020 and August 30, 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	$	11	$	—	$	—	$	28	$	—
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	$	—	$	(2)	$	—	$	—	$	(1)

Derivatives not designated as hedging relationships:
Foreign exchange option contracts	$	—	$	—	$	—	$	1	$	—
Foreign exchange forward contracts	$	—	$	—	$	5	$	—	$	—

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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.