Income Taxes (Tables)

6 Months Ended

12 Months Ended

May 31, 2013

Nov. 30, 2012

Components of Company's Income Tax Provision (Benefit) from Continuing Operations

The income tax provision for the first half of fiscal 2013 and 2012 was as follows:

	Six months ended May 31,
	2013			2012
	(In millions)
Federal current expense	$	5.7		$	2.4
State current expense		1.7			1.1
Net deferred expense		1.6			2.1
Benefit of research credits		(2.0	)		—
Total income tax provision	$	7.0		$	5.6

The components of the Company’s income tax provision (benefit) from continuing operations are as follows:

	Year Ended
	2012		2011			2010
	(In millions)
Current
U.S. federal	$	10.9	$	2.0		$	(5.2	)
State and local		3.8		4.2			3.1
		14.7		6.2			(2.1	)
Deferred
U.S. federal		3.2		(0.4	)		(0.8	)
State and local		1.0		0.3			(1.0	)
		4.2		(0.1	)		(1.8	)
Income tax provision (benefit)	$	18.9	$	6.1		$	(3.9	)

Effective Income Tax Rate on Earnings from Continuing Operations

A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate on earnings from continuing operations is as follows:

	Year Ended
	2012			2011			2010
Statutory U.S. federal income tax rate		35.0	%		35.0	%		35.0	%
State and local income taxes, net of U.S. federal income tax effect		20.4			29.9			93.7
Tax settlements and refund claims, including interest		—			3.5			(295.2	)
Reserve adjustments		21.5			0.8			(0.6	)
Valuation allowance adjustments		98.4			(44.0	)		(146.3	)
Unregistered stock rescission		1.7			3.3			13.8
Non-deductible convertible debt interest		21.5			31.6			124.5
Deferred net operating loss to additional paid in capital		23.0			2.1			—
Research credits		(75.3	)		—			—
Benefit of manufacturing deductions		(9.5	)		—			—
Other, net		6.5			5.3			(6.2	)
Effective income tax rate		143.2	%		67.5	%		(181.3	)%

Reconciliation of Change in Unrecognized Tax Benefits

A reconciliation of the change in unrecognized tax benefits from December 1, 2009 is as follows (in millions):

Unrecognized tax benefits at December 1, 2009	$	4.9
Gross decreases for tax positions taken in prior year		(0.1	)
Unrecognized tax benefits at November 30, 2010		4.8
Gross increases for tax positions taken during the year		0.1
Gross decreases for tax positions taken in prior year		(0.4	)
Unrecognized tax benefits at November 30, 2011		4.5
Gross increases for tax positions taken during the year		0.2
Gross increases for tax positions taken in the prior year		0.3
Gross decreases for tax positions taken in prior year		(0.1	)
Unrecognized tax benefits at November 30, 2012	$	4.9

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities are as follows:

	As of November 30,
	2012			2011
	(In millions)
Deferred Tax Assets
Accrued estimated costs	$	68.1		$	55.0
Basis difference in assets and liabilities		30.1			32.6
Tax losses and credit carryforwards		24.9			40.5
Net cumulative defined benefit pension plan losses		175.5			95.7
Retiree medical and life benefits		30.1			31.0
Valuation allowance		(288.1	)		(211.1	)
Total deferred tax assets		40.6			43.7
Deferred Tax Liabilities
U.S. federal effect of state deferred taxes		10.6			15.6
Revenue recognition differences		26.1			22.1
Intangible basis differences		15.5			13.6
Total deferred tax liabilities		52.2			51.3
Total net deferred tax liabilities	$	(11.6	)	$	(7.6	)

Year of Expiration for Company's State Net Operating Loss Carryforwards

The year of expiration for the Company’s state net operating loss carryforwards as of November 30, 2012 are as follows (in millions):

2013	$	0.2
2014		1.7
2015		24.7
2016		28.9
2017		30.0
2018		48.3
2019		105.5
	$	239.3