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INCOME TAXES:
12 Months Ended
Nov. 30, 2011
Income Tax Disclosure [Abstract]  
Income Taxes
INCOME TAXES: 
The sources of income from continuing operations before the provision for income taxes and noncontrolling interest are as follows: 
 
Fiscal Years Ended November 30,
 
2011
 
2010
 
2009
United States
$
184,768

 
$
142,972

 
$
96,331

Foreign
44,950

 
40,614

 
38,322

 
$
229,718

 
$
183,586

 
$
134,653

 The provisions for income taxes consist of the following:
 
Fiscal Years Ended November 30,
 
2011
 
2010
 
2009
Current tax provision:
 
 
 
 
 
Federal
$
49,937

 
$
50,411

 
$
35,158

State
11,140

 
9,883

 
6,438

Foreign
9,543

 
8,217

 
8,415

 
$
70,620

 
$
68,511

 
$
50,011

Deferred tax provision (benefit):
 
 
 
 
 
Federal
$
9,735

 
$
(2,237
)
 
$
(918
)
State
(1,186
)
 
(329
)
 
(292
)
Foreign
(4
)
 
965

 
227

 
$
8,545

 
$
(1,601
)
 
$
(983
)
Total tax provision
$
79,165

 
$
66,910

 
$
49,028


The following presents the breakdown between current and non-current net deferred tax assets:
 
As of November 30,
 
2011
 
2010
Deferred tax assets - current
$
28,241

 
$
33,063

Deferred tax assets - non-current
590

 
605

Deferred tax liabilities - current
(500
)
 
(294
)
Deferred tax liabilities - non-current
(8,086
)
 
(3,262
)
Total net deferred tax assets
$
20,245

 
$
30,112

Net deferred tax assets and liabilities consist of the following: 
 
As of November 30,
 
2011
 
2010
Assets:
 
 
 
Inventory reserves
$
7,448

 
$
9,182

Allowance for doubtful accounts and sales return reserves
8,303

 
10,155

Other reserves and accruals
7,995

 
8,765

State tax deduction
1,782

 
460

Deferred compensation
5,846

 
4,880

Net operating losses
15,902

 
10,532

Foreign tax credit
2,383

 
2,516

Share-based compensation expense
3,143

 
4,225

Unrealized losses on investments
1,758

 
1,119

Other
386

 
458

Gross deferred tax assets
54,946

 
52,292

Valuation allowance
(7,989
)
 
(3,862
)
Total deferred tax assets
$
46,957

 
$
48,430

Liabilities:
 
 
 
Depreciation and amortization
$
(5,423
)
 
$
(2,781
)
Convertible debt interest
(12,737
)
 
(11,383
)
Deferred revenue
(117
)
 
(86
)
Intangible assets
(8,435
)
 
(4,068
)
Total deferred tax liabilities
$
(26,712
)
 
$
(18,318
)
Net deferred tax assets
$
20,245

 
$
30,112


The valuation allowance relates primarily to foreign tax credits and certain net operating losses. The Company's assessment is that it is not more likely than not, that these deferred tax assets will be realized. The valuation allowance increased by $4,127 during fiscal year 2011 with a majority of the increase attributable to the net operating loss carry forwards resulting from the fiscal year 2011 acquisition of Infotec Japan.
A reconciliation of the statutory United States federal income tax rate to the Company’s effective income tax rate is as follows: 
 
Fiscal Years Ended November 30,
 
2011
 
2010
 
2009
Federal statutory income tax rate
35.0
 %
 
35.0
 %
 
35.0
 %
State taxes, net of federal income tax benefit
2.6

 
3.5

 
2.9

Foreign taxes
(2.9
)
 
(1.9
)
 
(2.4
)
Other
(0.2
)
 
(0.2
)
 
0.9

Effective income tax rate
34.5
 %
 
36.4
 %
 
36.4
 %

The Company's U.S. business has sufficient cash flow and liquidity to fund its operating requirements and the Company expects and intends that profits earned outside the United States will be fully utilized and reinvested to fund international expansion. Accordingly, the Company has not provisioned U.S. taxes and foreign withholding taxes on non-U.S. subsidiaries for which the earnings are permanently reinvested. As of November 30, 2011, there were approximately $181,400 of cumulative undistributed earnings of foreign subsidiaries. It is not currently practical to estimate the amount of income tax that might be payable if any earnings were to be distributed by individual foreign subsidiaries.
As of November 30, 2011, the Company had $2,455 in net operating loss carry forwards for the Company's UK subsidiaries that do not expire. It also had $58,354 in net operating loss carry forwards for Infotec Japan that expire in the fiscal years ending November 30, 2014 to 2018. The Company also had $3,265 in various state job credit carry forwards that expire in the fiscal years ending November 30, 2018 to 2023. In addition, the Company had $2,264 of foreign tax credit carry forwards available to offset future federal tax liabilities, which will expire in varying amounts from November 30, 2015 to November 30, 2021. The Company had $38,659 in federal and state net operating loss carry forwards attributable to the acquisition of Encover, Inc. ("Encover"). These carry forwards will expire in varying amounts during the fiscal years ending November 30, 2014 to November 30, 2030. 
The Company enjoys tax holidays in certain jurisdictions including China and the Philippines. The tax holidays provide for lower rates of taxation and require various thresholds of investment and business activities in those jurisdictions. These tax holidays are in effect currently and expire over the periods through November 30, 2013. The estimated range of tax benefits from the above tax holidays on diluted earnings per share for fiscal years 2011, 2010, and 2009 were approximately $0.03 to $0.04, $0.01 to $0.02 and $0.03 to $0.04 respectively. 
The aggregate changes in the balances of gross unrecognized tax benefits during fiscal years 2009, 2010 and 2011 were as follows: 
Balance as of December 1, 2008
$
8,362

Additions based on tax positions related to the current year
1,462

Additions for tax positions of prior years
309

Balance as of November 30, 2009
10,133

Additions based on tax positions related to the current year
2,713

Additions for tax positions of prior years
749

Reductions for tax positions of prior years
(185
)
Settlements
(337
)
Lapse of statute of limitations
(2,559
)
Balance as of November 30, 2010
10,514

Additions based on tax positions related to the current year
2,113

Additions for tax positions of prior years
8,043

Reductions for tax positions of prior years
(397
)
Lapse of statute of limitations
(1,273
)
Balance as of November 30, 2011
$
19,000

 
The Company conducts business globally and files income tax returns in various U.S. and foreign tax jurisdictions. The Company is subject to continuous examination and audits by various tax authorities. In the United States, the Company is subject to examination and audits by tax authorities for tax years after fiscal year ended 2007. The Company is not aware of any tax audits in other jurisdictions. The Company was notified by the IRS during fiscal year 2011 that the fiscal year 2009 and 2010 tax returns will be audited. Although timing of the resolution of audits is highly uncertain, the Company does not believe it is reasonably possible that the total amount of unrecognized tax benefits as of November 30, 2011 will materially change in the next twelve months.
As of November 30, 2011, $19,000 of the unrecognized tax benefits would affect the effective tax rate if realized. The increase in fiscal year 2011 in unrecognized tax benefit additions for tax positions of prior years is primarily due to the acquisition of Infotec Japan. The Company's policy is to include interest and penalties related to income taxes, including unrecognized tax benefits, within the provision for income taxes. As of November 30, 2011 and 2010, the Company had accrued $1,303 and $1,060, respectively, in income taxes payable related to accrued interest.