Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 03, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The fair value of derivative instruments on our Consolidated Balance Sheets as of December 3, 2021 and November 27, 2020 were as follows:


(in millions)	2021				2020
	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)	$	91	$	—	$	12	$	—


Derivatives not designated as hedging instruments:
Foreign exchange forward contracts (1)	7		8		3		4
Total derivatives	$	98	$	8	$	15	$	4

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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 2021, 2020 and 2019 were as follows:


(in millions)	2021		2020		2019
Derivatives in cash flow hedging relationships:
Foreign exchange option contracts	$	69	$	(43)	$	23
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 2021, 2020 and 2019 were as follows:


(in millions)	Financial Statement Classification	2021		2020		2019
Derivatives in cash flow hedging relationships:
Foreign exchange option contracts (1)
Net gain (loss) reclassified from accumulated OCI into income, net of tax	Revenue	$	(16)	$	3	$	39
Amount excluded from effectiveness testing and ineffective portion	Other income (expense), net	$	—	$	—	$	(24)
Treasury lock
Net gain (loss) reclassified from accumulated OCI into income, net of tax	Interest expense	$	(4)	$	(3)	$	(1)
Derivatives not designated as hedging relationships:
Foreign exchange option contracts	Revenue	$	—	$	—	$	1
Foreign exchange forward contracts	Other income (expense), net	$	(3)	$	5	$	4

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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”).