Derivative Financial Instruments (Tables)

12 Months Ended

Nov. 27, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The fair value of derivative instruments on our Consolidated Balance Sheets as of November 27, 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)	$	12	$	—	$	26	$	—
Treasury lock (1)	—		—		—		30

Derivatives not designated as hedging instruments:
Foreign exchange forward contracts (1)	3		4		3		3
Total derivatives	$	15	$	4	$	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 Consolidated Balance Sheets.

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

Gains (losses) on derivative instruments, net of tax, recognized in our Consolidated Statements of Comprehensive Income for fiscal 2020, 2019 and 2018 were as follows:


(in millions)	2020		2019		2018
Derivatives in cash flow hedging relationships:
Foreign exchange option contracts	$	(43)	$	23	$	74
Treasury lock	$	(1)	$	(23)	$	—

Schedule of Derivatives Instruments, Effect on Statements of Income

The effects of derivative instruments on our Consolidated Statements of Income for fiscal 2020, 2019 and 2018 were as follows:


(in millions)	2020						2019						2018
	Revenue		Interest Expense		Other Income (Expense), Net		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 OCI into income, net of tax	$	3	$	—	$	—	$	39	$	—	$	—	$	49	$	—
Amount excluded from effectiveness testing and ineffective portion	$	—	$	—	$	—	$	—	$	—	$	(24)	$	—	$	(41)
Treasury lock
Net gain (loss) reclassified from accumulated OCI into income, net of tax	$	—	$	(3)	$	—	$	—	$	(1)	$	—	$	—	$	—
Derivatives not designated as hedging relationships:
Foreign exchange option contracts	$	—	$	—	$	—	$	1	$	—	$	—	$	—	$	—
Foreign exchange forward contracts	$	—	$	—	$	5	$	—	$	—	$	4	$	—	$	2

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(1)Starting the third quarter of fiscal 2019, all changes in fair value of our foreign currency cash flow hedges are recorded in accumulated other comprehensive income (loss) (“OCI”).

Net Gains (Losses) Recognized in Interest and Other Income (Expense) Net, Relating to Non-Designated Derivatives

Net gains (losses) recognized in other income (expense), net relating to foreign currency derivatives not designated as hedging instruments for fiscal 2020, 2019 and 2018 were as follows:


(in millions)	2020		2019		2018
Gain (loss) on foreign currency assets and liabilities:
Net realized gain (loss) recognized in other income	$	(2)	$	(14)	$	1
Net unrealized gain (loss) recognized in other income	(5)		8		(4)
Gain (loss) on foreign currency assets and liabilities	(7)		(6)		(3)
Gain (loss) on hedges of foreign currency assets and liabilities:
Net realized gain (loss) recognized in other income	6		7		(2)
Net unrealized gain (loss) recognized in other income	(1)		(3)		4
Gain (loss) on hedges of foreign currency assets and liabilities	5		4		2
Net gain (loss) recognized in other income (expense), net	$	(2)	$	(2)	$	(1)