Income Taxes (Note)

12 Months Ended

Dec. 03, 2011

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The following is a reconciliation of the beginning and ending amount of gross unrecognized tax benefits for uncertain tax positions, including positions which impact only the timing of tax benefits for the years ended November 30, 2011, 2010 and 2009.

	2011			2010			2009
Unrecognized tax benefits at December 1,	$	2,783		$	3,021		$	2,731
Additions for current period tax positions	591			574			258
Additions for prior period tax positions	—			57			90
Reductions for prior period tax positions	(193		)	—			—
Reductions for lapse of statue of limitations/settlements	(203		)	(809		)	(197		)
Changes in interest and penalties	37			(60		)	139
Unrecognized tax benefits at November 30,	$	3,015		$	2,783		$	3,021

At November 30, 2011and 2010, the amount of unrecognized tax benefit, that would impact the effective tax rate if recognized, was $2,123 and $1,697, respectively.  As of November 30, 2011 and 2010, the Company had $495 and $470, respectively, accrued for the payment of interest and penalties.

The Company believes it is reasonably possible that the total amount of unrecognized tax benefits as of November 30, 2011, will decrease by $110 over the next twelve months as a result of expected settlements with taxing authorities.  Due to the various jurisdictions in which the Company files tax returns and the uncertainty regarding the timing of settlements it is possible that there could be other significant changes in the amount of unrecognized tax benefits in fiscal year 2012; however, the amount cannot be estimated.

The Company is regularly audited by federal, state and foreign tax authorities.  The Internal Revenue Service has completed its audits of the Company’s U.S. income tax returns through fiscal year 2009.  With few exceptions, the Company is no longer subject to income tax examinations by state or foreign tax jurisdictions for years prior to 2006.

The provision for income taxes consisted of:

	2011			2010			2009
Current:
Federal	$	34,374		$	35,292		$	25,938
State	1,558			2,526			970
Foreign	11,784			10,099			7,773
Deferred:
Federal	9,196			631			(1,564		)
State	1,086			(1,085		)	(53		)
Foreign	(1,051		)	(391		)	755
	$	56,947		$	47,072		$	33,819

Earnings before income taxes and noncontrolling interests included the following components:

	2011		2010		2009
Domestic income	$	139,840	$	109,303	$	77,276
Foreign income	41,468		34,120		28,373
	$	181,308	$	143,423	$	105,649

The provision for income taxes resulted in effective tax rates that differ from the statutory federal income tax rates.  The reasons for these differences are as follows:

	Percent of Pre-Tax Earnings
	2011		2010		2009
Statutory U.S. tax rates	35.0	%	35.0	%	35.0	%
State income taxes, net of federal benefit	1.3		1.0		0.6
Tax credits	(0.7	)	—		(0.7	)
Foreign taxes at different rates, net of credits	(2.5	)	(1.6	)	(1.7	)
Domestic production activities deduction	(2.4	)	(1.6	)	(1.3	)
Other, net	0.7		—		0.1
	31.4	%	32.8	%	32.0	%

The components of the net deferred tax liability as of November 30, 2011 and 2010 were as follows:

	2011			2010
Deferred tax assets:
Deferred compensation	$	8,260		$	7,590
Loss carryforward and tax credit items	3,265			3,146
Accounts receivable	5,840			6,092
Inventories	5,069			4,532
Pensions	26,643			24,036
Accrued liabilities and other	9,591			9,181
Valuation allowance	(1,959		)	(1,658		)
Total deferred tax assets, net	56,709			52,919
Deferred tax liabilities:
Percentage of completion	(468		)	(413		)
Plant assets	(27,616		)	(21,202		)
Goodwill and acquired intangible assets	(37,483		)	(35,958		)
Other deferred tax liabilities	(613		)	(531		)
Total deferred tax liabilities	(66,180		)	(58,104		)
Deferred tax liability, net	$	(9,471	)	$	(5,185	)

Of the foreign and state loss carryforwards and foreign and state tax credit items, $1,998 expires in 2012 through 2029 and $1,267 may be carried over indefinitely.  

The Company decreased the valuation allowance by $301 and $670 in 2011 and 2010, respectively, related to foreign and state net operating losses and foreign and state tax credit carryovers.  During the year ended November 30, 2011, the Company recognized $1,031 of tax benefit from the release of a valuation allowance recorded against net operating loss carryovers of one of its foreign subsidiaries.  The valuation allowance was released due to the successful completion of a subsidiary reorganization during the third quarter of 2011. The valuation allowance reflects the estimated amount of deferred tax assets due to foreign net operating losses that may not be realized.  The Company expects to realize the remaining deferred tax assets through the reversal of taxable temporary differences and future earnings.

The Company repatriated $21 of accumulated foreign earnings in 2011 related to one foreign subsidiary paying a dividend to another foreign subsidiary. The Company did not repatriate any accumulated foreign earnings in 2010.  The Company repatriated $991 of accumulated foreign earnings in 2009 related to a Canadian subsidiary due to favorable tax rates.  For the Company’s other foreign subsidiaries, the Company has not provided deferred taxes on unremitted foreign earnings from certain foreign affiliates of approximately $145,764 that are intended to be indefinitely reinvested to finance operations and expansion outside the United States.  If such earnings were distributed beyond the amount for which taxes have been provided, foreign tax credits could offset in part any incremental U.S. tax liability.  Determination of the unrecognized deferred taxes related to these undistributed earnings is not practicable.