NOTE 2:

FAIR VALUE OF FINANCIAL INSTRUMENTS

The following table presents the Company’s financial instruments that are carried at fair value:

 

		February 26, 2017												November 27, 2016
						Fair Value Estimated Using												Fair Value Estimated Using
		Fair Value				Level 1 Inputs(1)				Level 2 Inputs(2)				Fair Value				Level 1 Inputs(1)				Level 2 Inputs(2)
		(Dollars in thousands)
Financial assets carried at fair value
Rabbi trust assets		$	28,485			$	28,485			$	—			$	27,131			$	27,131			$	—
Forward foreign exchange contracts, net(3)			9,446				—				9,446				23,267				—				23,267
Total		$	37,931			$	28,485			$	9,446			$	50,398			$	27,131			$	23,267
Financial liabilities carried at fair value
Forward foreign exchange contracts, net(3)		$	10,843			$	—			$	10,843			$	5,533			$	—			$	5,533

 

(1)

Fair values estimated using Level 1 inputs are inputs which consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Rabbi trust assets consist of a diversified portfolio of equity, fixed income and other securities.

 

(2)

Fair values estimated using Level 2 inputs are inputs, other than quoted prices, that are observable for the asset or liability, either directly or indirectly and include among other things, quoted prices for similar assets or liabilities in markets that are active or inactive as well as inputs other than quoted prices that are observable. For forward foreign exchange contracts, inputs include foreign currency exchange and interest rates and, where applicable, credit default swap prices.

 

(3)	The Company’s over-the-counter forward foreign exchange contracts are subject to International Swaps and Derivatives Association, Inc. master agreements. These agreements permit the net settlement of these contracts on a per-institution basis.

The following table presents the carrying value, including related accrued interest, and estimated fair value of the Company’s financial instruments that are carried at adjusted historical cost:

 

		February 26, 2017								November 27, 2016
		Carrying Value				Estimated Fair Value				Carrying Value				Estimated Fair Value
		(Dollars in thousands)
Financial liabilities carried at adjusted historical cost
6.875% senior notes due 2022(1)			535,948				560,198				527,102				550,700
5.00% senior notes due 2025(1)			490,363				499,406				483,735				480,121
Short-term borrowings			34,393				34,393				39,009				39,009
Total		$	1,060,704			$	1,093,997			$	1,049,846			$	1,069,830

 

(1)	Fair values are estimated using Level 1 inputs and incorporate mid-market price quotes. Level 1 inputs are inputs which consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

 

NOTE 4:

FAIR VALUE OF FINANCIAL INSTRUMENTS

The following table presents the Company’s financial instruments that are carried at fair value:

 

		November 27, 2016												November 29, 2015
						Fair Value Estimated Using												Fair Value Estimated Using
		Fair Value				Level 1 Inputs(1)				Level 2 Inputs(2)				Fair Value				Level 1 Inputs(1)				Level 2 Inputs(2)
		(Dollars in thousands)
Financial assets carried at fair value
Rabbi trust assets		$	27,131			$	27,131			$	—			$	26,013			$	26,013			$	—
Forward foreign exchange contracts, net(3)			23,267				—				23,267				27,131				—				27,131
Total		$	50,398			$	27,131			$	23,267			$	53,144			$	26,013			$	27,131
Financial liabilities carried at fair value
Forward foreign exchange contracts, net(3)		$	5,533			$	—			$	5,533			$	7,809			$	—			$	7,809

 

(1)

Fair values estimated using Level 1 inputs are inputs which consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Rabbi trust assets consist of a diversified portfolio of equity, fixed income and other securities. See Note 12 for more information on rabbi trust assets.

 

(2)

Fair values estimated using Level 2 inputs are inputs, other than quoted prices, that are observable for the asset or liability, either directly or indirectly and include among other things, quoted prices for similar assets or liabilities in markets that are active or inactive as well as inputs other than quoted prices that are observable. For forward foreign exchange contracts, inputs include foreign currency exchange and interest rates and, where applicable, credit default swap prices.

 

(3)	The Company’s over-the-counter forward foreign exchange contracts are subject to International Swaps and Derivatives Association, Inc. master agreements. These agreements permit the net-settlement of these contracts on a per-institution basis.

The following table presents the carrying value, including related accrued interest, and estimated fair value of the Company’s financial instruments that are carried at adjusted historical cost:

 

		November 27, 2016								November 29, 2015
		Carrying Value				Estimated Fair Value				Carrying Value				Estimated Fair Value
		(Dollars in thousands)
Financial liabilities carried at adjusted historical cost
Senior revolving credit facility		$	—			$	—			$	99,020			$	99,020
4.25% Yen-denominated Eurobonds due 2016(1)			—				—				32,736				33,593
6.875% senior notes due 2022(1)			527,102				550,700				527,715				570,355
5.00% senior notes due 2025(1)			483,735				480,121				482,145				480,945
Short-term borrowings			39,009				39,009				15,996				15,996
Total		$	1,049,846			$	1,069,830			$	1,157,612			$	1,199,909

 

(1)	Fair values are estimated using Level 1 inputs and incorporate mid-market price quotes. Level 1 inputs are inputs which consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.