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Balance Sheet Accounts

6 Months Ended

May 31, 2012

Basis of Presentation and Nature of Operations and Balance Sheet Accounts [Abstract]

5. Balance Sheet Accounts

a. Fair Value of Financial Instruments

The accounting standards use a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The following are measured at fair value:


	Total		Fair value measurement at May 31, 2012
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In millions)
Money market funds	$	159.8	$	159.8	$	—	$	—


	Total		Fair value measurement at November 30, 2011
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In millions)
Money market funds	$	194.8	$	194.8	$	—	$	—

As of May 31, 2012, a summary of cash and cash equivalents and grantor trust by investment type is as follows:


	Total		Cash and Cash Equivalents		Money Market Funds
	(In millions)
Cash and cash equivalents	$	150.2	$	4.8	$	145.4
Grantor trust		14.4		—		14.4

	$	164.6	$	4.8	$	159.8

The carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, accrued compensation, and other accrued liabilities, approximate fair value because of their short maturities.

The estimated fair value and principal amount for the Company’s long-term debt is presented below:


	Fair Value				Principal Amount
	May 31, 2012		November 30, 2011		May 31, 2012		November 30, 2011
	(In millions)
Term loan	$	48.7	$	49.5	$	48.7	$	50.0
9 ¹/ 2% Senior Subordinated Notes (“9 ¹/2% Notes”)		—		75.1		—		75.0
4 1/16% Debentures		200.0		184.0		200.0		200.0
Other debt		1.3		1.4		1.3		1.4

	$	250.0	$	310.0	$	250.0	$	326.4

The fair values of the term loan, 9 ¹/2% Notes, and 4 1/16% Debentures were determined using broker quotes that are based on open markets of the Company’s debt securities as of May 31, 2012 and November 30, 2011, respectively. The fair value of the other debt was determined to approximate carrying value.

b. Accounts Receivable


	May 31, 2012		November 30, 2011
	(In millions)
Billed	$	52.0	$	58.1
Unbilled		55.6		48.8

Total receivables under long-term contracts		107.6		106.9
Other receivables		0.2		0.1

Accounts receivable	$	107.8	$	107.0

c. Inventories


	May 31, 2012			November 30, 2011
	(In millions)
Long-term contracts at average cost	$	278.0		$	262.4
Progress payments		(240.9	)		(213.1	)

Total long-term contract inventories		37.1			49.3
Work in progress		0.3			0.2

Total other inventories		0.3			0.2

Inventories	$	37.4		$	49.5

d. Property, Plant and Equipment, net


	May 31, 2012			November 30, 2011
	(In millions)
Land	$	32.2		$	32.8
Buildings and improvements		154.6			153.9
Machinery and equipment		342.2			349.0
Construction-in-progress		19.9			17.4

		548.9			553.1
Less: accumulated depreciation		(421.2	)		(426.2	)

Property, plant and equipment, net	$	127.7		$	126.9

e. Other Noncurrent Assets, net


	May 31, 2012		November 30, 2011
	(In millions)
Grantor trust	$	12.8	$	13.3
Recoverable from the U.S. government for conditional asset retirement obligations		13.2		12.3
Deferred financing costs		7.1		8.4
Other		17.7		23.7

Other noncurrent assets, net	$	50.8	$	57.7

f. Other Current Liabilities


	May 31, 2012		November 30, 2011
	(In millions)
Accrued compensation and employee benefits	$	42.6	$	44.0
Legal settlements		10.4		10.7
Interest payable		5.9		7.9
Contract loss provisions		5.4		4.7
Other		35.4		36.8

Other current liabilities	$	99.7	$	104.1

g. Other Noncurrent Liabilities


	May 31, 2012		November 30, 2011
	(In millions)
Pension benefits, non-qualified	$	15.9	$	16.1
Conditional asset retirement obligations		19.7		17.8
Legal settlements		2.2		8.3
Deferred revenue		8.9		9.2
Deferred compensation		7.9		7.8
Other		6.4		4.9

Other noncurrent liabilities	$	61.0	$	64.1

h. Accumulated Other Comprehensive Loss, Net of Income Taxes


	May 31, 2012			November 30, 2011
	(In millions)
Actuarial losses, net	$	(274.7	)	$	(304.2	)
Prior service credits		4.8			4.8

Accumulated other comprehensive loss, net of income taxes	$	(269.9	)	$	(299.4	)

During the second quarter and first half of fiscal 2012, the Company had comprehensive income of $16.5 million and $33.6 million, respectively. During the second quarter and first half of fiscal 2011, the Company had comprehensive income of $15.7 million and $32.6 million, respectively. The components of accumulated other comprehensive loss related to the Company’s retirement benefit plans.

Market conditions and interest rates significantly affect assets and liabilities of the Company’s pension plans. Pension accounting permits market gains and losses to be deferred and recognized over a period of years. This “smoothing” results in the creation of other accumulated income or loss which will be amortized to pension costs in future years. The accounting method the Company utilizes recognizes one-fifth of the unamortized gains and losses in the market-related value of pension assets and all other gains and losses including changes in the discount rate used to calculate benefit costs each year. Investment gains or losses for this purpose are the difference between the expected return and the actual return on the market-related value of assets which smoothes asset values over three years. Although the smoothing period mitigates some volatility in the calculation of annual retirement benefit expense, future expenses are impacted by changes in the market value of pension plan assets and changes in interest rates.