Income Taxes (Tables)

12 Months Ended

Dec. 01, 2024

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
	December 1, 2024				November 26, 2023				November 27, 2022
	(Dollars in millions)
Income tax expense (benefit) at U.S. federal statutory rate	$	46.0	21.0	%	$	55.7	21.0	%	$	136.4	21.0	%
State income taxes, net of U.S. federal impact	(4.5)		(2.1)	%	1.3		0.5	%	14.5		2.2	%
Change in valuation allowance	(0.5)		(0.2)	%	(2.0)		(0.8)	%	(0.5)		(0.1)	%
Impact of foreign operations, net(1)	26.9		12.3	%	14.3		5.4	%	29.6		4.6	%
Foreign-derived intangible income benefit ("FDII")	(6.5)		(3.0)	%	(55.9)		(21.1)	%	(29.8)		(4.6)	%
Reassessment of tax liabilities	(11.0)		(5.0)	%	(0.6)		(0.2)	%	(7.5)		(1.2)	%
International intellectual property transaction	(45.9)		(21.0)	%	—		—	%	(55.1)		(8.5)	%
Stock-based compensation	3.7		1.7	%	6.6		2.5	%	(5.0)		(0.8)	%
Other, including non-deductible expenses	0.2		0.1	%	(3.8)		(1.4)	%	(2.1)		(0.2)	%
Total	$	8.4	3.8	%	$	15.6	5.9	%	$	80.5	12.4	%

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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 war in fiscal year 2022.

Schedule of income before income tax, domestic and foreign

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

	Year Ended
	December 1, 2024		November 26, 2023		November 27, 2022
	(Dollars in millions)
Domestic	$	(126.8)	$	(164.7)	$	171.1
Foreign	345.8		429.9		478.5
Total income before income taxes	$	219.0	$	265.2	$	649.6

Schedule of components of income tax expense (benefit)

Income tax expense (benefit) consisted of the following:

	Year Ended
	December 1, 2024		November 26, 2023		November 27, 2022
	(Dollars in millions)
U.S. Federal
Current	$	13.7	$	14.4	$	15.3
Deferred	4.7		(91.5)		46.1
	$	18.4	$	(77.1)	$	61.4
U.S. State
Current	$	0.9	$	11.3	$	14.6
Deferred	(14.9)		(9.7)		(6.3)
	$	(14.0)	$	1.6	$	8.3
Foreign
Current	$	84.9	$	94.2	$	110.4
Deferred	(80.9)		(3.0)		(99.6)
	$	4.0	$	91.2	$	10.8
Consolidated
Current	$	99.5	$	119.9	$	140.3
Deferred	(91.1)		(104.3)		(59.8)
Total income tax expense	$	8.4	$	15.6	$	80.5

Schedule of deferred tax assets and liabilities

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

	December 1, 2024		November 26, 2023
	(Dollars in millions)
Deferred tax assets
Foreign tax credit carryforwards	$	26.1	$	28.3
State net operating loss carryforwards	15.7		10.7
Foreign net operating loss carryforwards	32.8		40.1
Employee compensation and benefit plans	87.5		79.4
Advance royalties	158.8		185.1
Prepaid services	46.5		57.9
Accrued liabilities	35.9		17.3
Sales returns and allowances	39.0		35.0
Inventory	32.7		31.2
Intangibles	275.1		199.1
Property, plant and equipment (1)	32.4		30.7
Lease liability	288.7		297.6
Other (1)	65.2		43.5
Total gross deferred tax assets	1,136.4		1,055.9
Less: Valuation allowance	(52.9)		(47.4)
Deferred tax assets, net of valuation allowance	1,083.5		1,008.5
Deferred tax liabilities
U.S. Branches	(40.1)		(25.9)
Right of use asset	(259.4)		(262.2)
Total deferred tax liabilities	(299.5)		(288.1)
Total net deferred tax assets	$	784.0	$	720.4

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(1)Fiscal year 2023 amounts have been conformed to the fiscal year 2024 presentation.

Summary of valuation allowance

The following table details the changes in valuation allowance during the year ended December 1, 2024:

	Valuation Allowance at November 26, 2023		Changes in Related Gross Deferred Tax Asset		Change / (Release)		Valuation Allowance at December 1, 2024
	(Dollars in millions)
Foreign tax credit and U.S. state net operating loss carryforwards	$	15.8	$	5.1	$	—	$	20.9
Foreign net operating loss carryforwards and other foreign deferred tax assets	31.6		0.8		(0.4)		32.0
	$	47.4	$	5.9	$	(0.4)	$	52.9

Schedule of unrecognized tax benefits roll forward

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

	December 1, 2024		November 26, 2023		November 27, 2022
	(Dollars in millions)
Unrecognized tax benefits beginning balance	$	42.3	$	38.1	$	30.7
Increases related to current year tax positions	4.2		4.1		10.2
Increases related to tax positions from prior years	0.7		1.9		0.1
Decreases related to tax positions from prior years	(3.6)		—		(0.3)
Settlement with tax authorities	(0.7)		(1.7)		(1.5)
Lapses of statutes of limitation	—		(0.2)		(0.8)
Other, including foreign currency translation	(0.2)		0.1		(0.3)
Unrecognized tax benefits ending balance	$	42.7	$	42.3	$	38.1