Income Taxes (Tables)

12 Months Ended

Nov. 27, 2022

Income Tax Disclosure [Abstract]

Schedule of effective income tax rate reconciliation

The Company's income tax expense (benefit) differed from the amount computed by applying the U.S. federal statutory income tax rate to income before income taxes as follows:

	Year Ended
	November 27, 2022				November 28, 2021				November 29, 2020
	(Dollars in millions)
Income tax expense (benefit) at U.S. federal statutory rate	$	136.4	21.0	%	$	121.9	21.0	%	$	(39.9)	21.0	%
State income taxes, net of U.S. federal impact	14.5		2.2	%	9.0		1.6	%	(5.2)		2.8	%
Change in valuation allowance	(0.5)		(0.1)	%	2.6		0.4	%	18.3		(9.6)	%
Impact of foreign operations, net(1)(2)	29.6		4.6	%	11.5		2.0	%	(8.9)		4.7	%
Foreign-derived intangible income benefit ("FDII")	(29.8)		(4.6)	%	(66.0)		(11.4)	%	—		—	%
Reassessment of tax liabilities	(7.5)		(1.2)	%	(0.8)		(0.1)	%	(1.5)		0.7	%
International intellectual property transaction(2)	(55.1)		(8.5)	%	(15.1)		(2.6)	%	—		—	%
Stock-based compensation	(5.0)		(0.8)	%	(36.9)		(6.4)	%	(22.3)		11.8	%
Other, including non-deductible expenses	(2.1)		(0.2)	%	0.5		0.1	%	1.5		(0.8)	%
Change in tax law	—		—	%	—		—	%	(4.6)		2.4	%
Total	$	80.5	12.4	%	$	26.7	4.6	%	$	(62.6)	33.0	%

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(1)Included in Impact of foreign operations, net are foreign rate differential, Global Intangible Low-Taxed Income ("GILTI") and the tax impact of actual and deemed repatriations of foreign earnings net of foreign tax credits. This also includes an immaterial amount of non-deductible charges related to the Russia-Ukraine crisis.

(2)Fiscal year 2021 amount has been conformed to the fiscal year 2022 presentation.

Schedule of income before income tax, domestic and foreign

The U.S. and foreign components of income before income taxes were as follows:

	Year Ended
	November 27, 2022		November 28, 2021		November 29, 2020
	(Dollars in millions)
Domestic	$	171.1	$	197.4	$	(197.7)
Foreign	478.5		382.8		8.0
Total income before income taxes	$	649.6	$	580.2	$	(189.7)

Schedule of components of income tax expense (benefit)

Income tax expense consisted of the following:

	Year Ended
	November 27, 2022		November 28, 2021		November 29, 2020
	(Dollars in millions)
U.S. Federal
Current	$	15.3	$	12.9	$	8.4
Deferred	46.1		(25.5)		(79.7)
	$	61.4	$	(12.6)	$	(71.3)
U.S. State
Current	$	14.6	$	7.8	$	1.0
Deferred	(6.3)		1.2		(6.4)
	$	8.3	$	9.0	$	(5.4)
Foreign
Current	$	110.4	$	93.9	$	23.2
Deferred	(99.6)		(63.6)		(9.1)
	$	10.8	$	30.3	$	14.1
Consolidated
Current	$	140.3	$	114.6	$	32.6
Deferred	(59.8)		(87.9)		(95.2)
Total income tax expense	$	80.5	$	26.7	$	(62.6)

Schedule of deferred tax assets and liabilities

The Company's deferred tax assets and deferred tax liabilities were as follows:

	November 27, 2022		November 28, 2021
	(Dollars in millions)
Deferred tax assets
Foreign tax credit carryforwards	$	104.2	$	147.8
State net operating loss carryforwards	14.9		12.2
Foreign net operating loss carryforwards	47.6		53.3
Employee compensation and benefit plans	97.2		107.5
Advance royalties	87.1		114.5
Accrued liabilities	16.8		19.3
Sales returns and allowances	31.6		34.0
Inventory	36.9		26.2
Intangibles(1)	172.5		66.2
Lease liability	276.7		284.6
Other(1)	50.8		25.3
Total gross deferred tax assets	936.3		890.9
Less: Valuation allowance	(49.7)		(46.0)
Deferred tax assets, net of valuation allowance	886.6		844.9
Deferred tax liabilities
U.S. Branches	(32.4)		(31.1)
Right of use asset	(244.0)		(256.6)
Total deferred tax liabilities	(276.4)		(287.7)
Total net deferred tax assets	$	610.2	$	557.2

___________

(1)Fiscal year 2021 amount has been conformed to the fiscal year 2022 presentation.

Summary of valuation allowance

The following table details the changes in valuation allowance during the year ended November 27, 2022:

	Valuation Allowance at November 28, 2021		Changes in Related Gross Deferred Tax Asset		Change / (Release)		Valuation Allowance at November 27, 2022
	(Dollars in millions)
Foreign tax credit and U.S. state net operating loss carryforwards	$	9.2	$	3.5	$	(4.1)	$	8.6
Foreign net operating loss carryforwards and other foreign deferred tax assets	36.7		0.8		3.5		41.0
	$	45.9	$	4.3	$	(0.6)	$	49.6

Schedule of unrecognized tax benefits roll forward

The following table reflects the changes to the Company's unrecognized tax benefits:

	November 27, 2022		November 28, 2021		November 29, 2020
	(Dollars in millions)
Unrecognized tax benefits beginning balance	$	30.7	$	32.3	$	36.6
Increases related to current year tax positions	10.2		1.1		1.6
Increases related to tax positions from prior years	0.1		—		0.3
Decreases related to tax positions from prior years	(0.3)		(1.7)		(0.9)
Settlement with tax authorities	(1.5)		(0.4)		(4.3)
Lapses of statutes of limitation	(0.8)		(0.4)		(0.5)
Other, including foreign currency translation	(0.3)		(0.2)		(0.5)
Unrecognized tax benefits ending balance	$	38.1	$	30.7	$	32.3