Balance Sheet Accounts and Supplemental Disclosures, (As Restated for fiscal 2014 and 2013)

a. Accounts Receivable



	As of November 30,
	2015		2014
	(In millions)
Billed	$	90.4	$	68.1
Unbilled, net	80.6		102.0
Total receivables under long-term contracts	171.0		170.1
Other receivables	0.5		0.4
Accounts receivable	$	171.5	$	170.5

As of November 30, 2015 and 2014, unbilled receivables included $33.7 million and $30.1 million, respectively, of amounts for overhead disallowances or billing decrements that primarily represent estimates of potential overhead costs which may not be successfully negotiated and collected after one year.

b. Inventories



	As of November 30,
	2015			2014
	(In millions)
Long-term contracts at average cost	$	505.8		$	493.6
Progress payments	(349.6		)	(356.9		)
Total long-term contract inventories	156.2			136.7
Total other inventories	1.3			1.3
Inventories	$	157.5		$	138.0

Long-term contract inventories included an allocation of general and administrative costs incurred throughout fiscal 2015 and fiscal 2014 amounting to $240.9 million and $271.1 million, respectively, and the cumulative amount of general and administrative costs in long-term contract inventories is estimated to be $20.8 million and $28.3 million at November 30, 2015 and 2014, respectively.

c. Other Current Assets, net



	As of November 30,
	2015		2014
	(In millions)
Recoverable from the U.S. government for Rocketdyne Business integration costs (see Note 4(g))	$	11.9	$	10.5
Prepaid expenses	10.7		11.3
Receivables, net	7.2		5.6
Indemnification receivable from UTC, net	15.7		0.9
Recoverable from the U.S. government for Competitive Improvement Program severance obligations (see Note 12)	9.5		—
Other	6.5		10.3
Other current assets, net	$	61.5	$	38.6

d. Property, Plant and Equipment, net



	As of November 30,
	2015			2014
	(In millions)
Land	$	71.3		$	67.2
Buildings and improvements	287.6			279.9
Machinery and equipment	509.8			476.0
Construction-in-progress	34.9			35.5
	903.6			858.6
Less: accumulated depreciation	(537.8		)	(492.1		)
Property, plant and equipment, net	$	365.8		$	366.5

Depreciation expense for fiscal 2015, 2014, and 2013 was $49.8 million, $48.5 million, and $35.5 million, respectively. The Company had $6.3 million of property, plant and equipment additions included in accounts payable in fiscal 2015.

e. Goodwill

The goodwill balance at November 30, 2015 and 2014 relates to the Company’s Aerospace and Defense segment. The changes in the carrying amount of goodwill since November 30, 2013 were as follows (in millions):



November 30, 2013	$	152.5
Purchase accounting adjustments in fiscal 2014 related to the Rocketdyne Business acquisition (see Note 5)	5.6
November 30, 2015 and 2014	$	158.1

The purchase accounting adjustments recorded during fiscal 2014 were during the measurement period of the assets acquired and liabilities assumed related to the Rocketdyne Business acquisition and had no impact on the Company’s consolidated statement of operations.

f. Intangible Assets



	As of November 30, 2015
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(In millions)
Customer related	$	83.8	$	27.6	$	56.2
Intellectual property\trade secrets	34.2		6.4		27.8
Non-compete agreements	0.5		0.4		0.1
Trade name	20.5		1.6		18.9
Acquired technology	18.3		12.5		5.8
Intangible assets	$	157.3	$	48.5	$	108.8



	As of November 30, 2014
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(In millions)
Customer related	$	83.8	$	18.5	$	65.3
Intellectual property\trade secrets	34.2		3.7		30.5
Non-compete agreements	0.5		0.2		0.3
Trade name	20.5		1.0		19.5
Acquired technology	18.3		11.7		6.6
Intangible assets	$	157.3	$	35.1	$	122.2

Amortization expense related to intangible assets was $13.4 million, $13.5 million, $6.5 million in fiscal 2015, 2014, and 2013, respectively.

Future amortization expense for the five succeeding years is estimated to be as follows:



Year Ending November 30,	Future Amortization Expense
	(In millions)
2016	$	13.3
2017	13.1
2018	13.1
2019	13.0
2020	12.8
	$	65.3

g. Other Noncurrent Assets, net



	As of November 30,
	2015		2014
	(In millions)
Recoverable from the U.S. government for Rocketdyne Business integration costs	$	22.4	$	27.6
Deferred financing costs	13.9		18.5
Recoverable from the U.S. government for conditional asset retirement obligations	17.5		17.7
Grantor trust	10.7		11.2
Note receivable, net	9.0		—
Recoverable from the U.S. government for Competitive Improvement Program severance obligations (see Note 12)	2.8		—
Indemnification receivable from UTC, net	—		6.7
Other	9.4		11.3
Other noncurrent assets, net	$	85.7	$	93.0

The current and noncurrent Rocketdyne Business integration costs incurred and capitalized as of November 30, 2015 and 2014 totaled $34.3 million and $38.1 million, respectively. These integration costs are reimbursable by the U.S. government upon its audit and approval that the Company's planned integration savings will exceed its restructuring costs by a factor of at least two to one. In December 2014, the Company was informed that the Defense Contract Audit Agency had completed its audit of the Company’s restructuring proposal and found that the Company had achieved the required minimum two to one savings to restructuring cost ratio. Actual recovery of the previously deferred integration costs will take place after the determination from the Under Secretary of Defense that the audited restructuring savings exceed the costs by a factor of two to one and final execution of an Advance Agreement with the Defense Contract Management Agency. The Company believes these final two actions will be completed in first quarter of fiscal 2016. The Company reviews on a quarterly basis the probability of recovery of these costs.

The Company amortizes deferred financing costs over the estimated life of the related debt. Amortization of deferred financing costs was $2.7 million, $3.6 million, and $4.5 million in fiscal 2015, 2014, and 2013, respectively.

h. Assets Held for Sale

As of February 28, 2015, the Company classified approximately 550 acres of its Sacramento Land, known as Hillsborough and representing a portion of the 6,000 acre Easton Master Plan, as assets held for sale as a result of its plans to sell the Hillsborough land. The Hillsborough land was reported as real estate held for entitlement and leasing as of November 30, 2014. For operating segment reporting, the Hillsborough land has been reported as a part of the Real Estate segment.

During the second quarter of fiscal 2015, the Company finalized the sale of the Hillsborough land for a total purchase price of $57.0 million which was comprised of $46.7 million cash and $10.3 million of promissory notes. The total acreage covered by the Hillsborough land transaction was approximately 700 acres, of which approximately 550 acres was recognized as a sale in the second quarter of fiscal 2015. At the initial closing, the buyer paid $40.0 million cash and executed a $9.0 million promissory note secured by a first lien Deed of Trust on a portion of the sale property which resulted in a gain of $30.6 million in the second quarter of fiscal 2015. The $9.0 million promissory note secured by a first lien Deed of Trust is divided into two components: (i) a $3.0 million 7% promissory note payable 7 years after close of escrow, which includes a possible $1.0 million reduction in principal if the Company is unable to obtain the necessary road and utility approvals, and (ii) a $6.0 million 7% promissory note payable 7 years after close of escrow and only payable after certain environmental clearances associated with "Area 40" (discussed below) are obtained by the Company. The sale also included a $1.3 million non-interest bearing promissory note secured by a first lien Deed of Trust on a portion of the sale property associated with the location of future city roads. In addition, approximately 150 acres of this land, including a 50-acre portion known as “Area 40,” was held back from the initial closing. Upon receipt of regulatory approvals, a closing will take place for the sale of the developable portions of such holdback acreage for a purchase price of $6.7 million in cash. A summary of the impact of the land sale on the consolidated statement of operations for fiscal 2015 is as follows (in millions):



Net sales from land sale	$	42.0
Cost of sales from land sale	11.4
Income from continuing operations before income taxes from land sale	30.6
Income tax provision related to land sale	12.7
Net income from land sale	$	17.9

In November 2014, the Company classified its energy business (the "Energy Business") as assets held for sale as a result of its plans to sell the business. The Company divested the Energy Business in July 2015 for an insignificant amount of proceeds. The Company incurred approximately $1.8 million of expenses to divest its Energy Business. The assets and liabilities of the Energy Business for all periods presented were insignificant. The plan was a result of management’s decision to focus its capital and resources on its Aerospace and Defense and Real Estate operating segments. The net sales associated with the Energy Business totaled $0.6 million in fiscal 2015 and 2014. For operating segment reporting, the Energy Business has been reported as a part of the Aerospace and Defense segment.

In the fourth quarter of fiscal 2014, the Company entered into an asset purchase agreement associated with the sale of certain intellectual property related to a solar power contract. The related contract was terminated in connection with the sale. The proceeds from the sale were $7.5 million resulting in a gain of $6.8 million which is included in "Other, net" in the consolidated statement of operations.

i. Other Current Liabilities



	As of November 30,
	2015		2014
	(In millions)
Accrued compensation and employee benefits	$	101.3	$	94.9
Income taxes	15.5		16.2
Payable to UTC primarily for Transition Service Agreements	1.9		11.9
Interest payable	11.7		14.6
Contract loss provisions	9.3		12.0
Other	61.6		71.8
Other current liabilities	$	201.3	$	221.4

j. Other Noncurrent Liabilities



	As of November 30,
	2015		2014
	(In millions)
Conditional asset retirement obligations	$	29.3	$	24.4
Pension benefits, non-qualified	17.9		19.1
Deferred compensation	11.9		11.1
Deferred revenue	13.9		7.4
Other	21.4		18.6
Other noncurrent liabilities	$	94.4	$	80.6

k. Accumulated Other Comprehensive Loss, Net of Income Taxes

Changes in accumulated other comprehensive loss by components, net of income taxes, related to the Company’s retirement benefit plans are as follows:



	Actuarial Losses, Net			Prior Service Credits, Net			Total
	(In millions)
November 30, 2013	$	(232.1	)	$	3.8		$	(228.3	)
Actuarial losses arising during the period, net of income taxes	(136.0		)	—			(136.0		)
Amortization of actuarial losses and prior service credits, net of income taxes	31.1			(0.5		)	30.6
November 30, 2014	(337.0		)	3.3			(333.7		)
Actuarial losses and prior service costs arising during the period, net of income taxes	(55.0		)	(1.6		)	(56.6		)
Amortization of actuarial losses and prior service credits, net of income taxes	49.4			(0.8		)	48.6
November 30, 2015	$	(342.6	)	$	0.9		$	(341.7	)

The estimated amounts that will be amortized from accumulated other comprehensive loss into net periodic benefit expense in fiscal 2016 are as follows:



	Pension Benefits		Medical and Life Insurance Benefits
	(In millions)
Actuarial losses (gains), net	$	64.7	$	(3.6	)
Prior service costs (credits), net	0.1		(1.1		)
	$	64.8	$	(4.7	)

l. Redeemable Common Stock

The Company inadvertently failed to register with the SEC the issuance of certain of its common shares in its defined contribution 401(k) employee benefit plan (the “Plan”). As a result, certain Plan participants who purchased such securities pursuant to the Plan may have the right to rescind certain of their purchases for consideration equal to the purchase price paid for the securities (or if such security has been sold, to receive consideration with respect to any loss incurred on such sale) plus interest from the date of purchase. As of November 30, 2015 and 2014, the Company has classified 0.1 million shares as redeemable common stock because the redemption features are not within the control of the Company. The Company may also be subject to civil and other penalties by regulatory authorities as a result of the failure to register these shares. These shares have always been treated as outstanding for financial reporting purposes. In June 2008, the Company filed a registration statement on Form S-8 to register future transactions in the Company's stock fund in the Plan. During fiscal 2015, 2014 and 2013, the Company recorded less than $(0.1) million, $0.9 million, and $(1.0) million, respectively, for realized (gains)/losses and interest associated with this matter.