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Retirement Benefits (Tables)
 12 Months Ended
Nov. 30, 2013
Compensation And Retirement Disclosure [Abstract]  
Changes in Prepayment Credits

Changes in prepayment credits during fiscal 2013 were as follows (in millions):

 

Balance as of November 30, 2012

    $ 32.5   

Amount used to offset minimum required contribution as of December 1, 2012

      (5.4 ) 

Adjustment for investment experience

      3.5   
  

 

 

  

Balance as of November 30, 2013

    $ 30.6   
  

 

 

  
Summary of Company's Pension Benefits and Medical and Life Insurance Benefits

Plan assets, benefit obligations, and the funded status of the plans were determined at November 30, 2013 and 2012 for fiscal 2013 and 2012, respectively.

 

     Pension Benefits     Medical and
Life Insurance
Benefits		  
     As of November 30,  
     2013     2012     2013     2012  
     (In millions)  

Change in fair value of plan assets:

         

Fair value — beginning of year

    $ 1,243.1      $ 1,296.8      $ —     $ —  

Gain on plan assets

      150.2        81.2        —       —  

Employer contributions

      1.2        1.2        5.4        5.1   

Benefits paid(1)

      (136.1 )      (136.1 )      (5.4 )      (5.1 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Fair Value — end of year

    $ 1,258.4      $ 1,243.1      $ —     $ —  
  

 

 

    

 

 

    

 

 

    

 

 

  

Change in benefit obligation:

         

Benefit obligation — beginning of year

    $ 1,717.7      $ 1,550.4      $ 75.8      $ 75.2   

Service cost(2)

      6.3        4.5        0.1        0.1   

Interest cost

      61.0        73.5        2.4        3.3   

Acquisition(3)

      5.3        —        —        —   

Actuarial(gains) losses

      (115.6 )      225.4        (6.3 )      2.3   

Benefits paid

      (136.1 )      (136.1 )      (5.4 )      (5.1 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Benefit obligation — end of year(4)

    $ 1,538.6      $ 1,717.7      $ 66.6      $ 75.8   
  

 

 

    

 

 

    

 

 

    

 

 

  

Funded status of the plans

    $ (280.2 )    $ (474.6 )    $ (66.6 )    $ (75.8 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Amounts Recognized in the Consolidated Balance Sheets:

         

Postretirement medical and life insurance benefits, current

    $ —     $ —     $ (7.3 )    $ (7.5 ) 

Postretirement medical and life insurance benefits, noncurrent

      —       —       (59.3 )      (68.3 ) 

Pension liability, non-qualified current (component of other current liabilities)

      (1.3 )      (1.2 )      —       —  

Pension liability, non-qualified (component of other noncurrent liabilities)

      (17.2 )      (18.9 )      —       —  

Pension benefits, noncurrent

      (261.7 )      (454.5 )      —       —  
  

 

 

    

 

 

    

 

 

    

 

 

  

Net Liability Recognized in the Consolidated Balance Sheets

    $ (280.2 )    $ (474.6 )    $ (66.6 )    $ (75.8 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

 

 

(1)

Benefits paid for medical and life insurance benefits are net of the Medicare Part D Subsidy of $0.4 million received in both fiscal 2013 and 2012.

 

(2)

Service cost for pension benefits represents the administrative costs of the tax-qualified pension plan and the service cost for Rocketdyne’s bargaining unit employees from the acquisition date of June 14, 2013 to November 30, 2013.

 

(3)

Estimate of pension liability associated with Rocketdyne’s bargaining unit employees as of the acquisition date of June 14, 2013

 

(4)

Pension benefit obligation includes $18.5 million in fiscal 2013 and $20.1 million in fiscal 2012 for the non-qualified plan.
Components of Net Periodic Benefit Expense (Income)

Components of net periodic benefit expense (income) are as follows:

 

     Pension Benefits     Medical and
Life Insurance Benefits		  
     Year Ended  
     2013     2012     2011     2013     2012     2011  
     (In millions)  

Service cost(1)

    $ 6.3      $ 4.5      $ 3.9      $ 0.1      $ 0.1      $ 0.1   

Interest cost on benefit obligation

      61.0        73.5        78.4        2.4        3.3        3.5   

Assumed return on plan assets(2)

      (96.4 )      (99.2 )      (102.4 )      —       —       —  

Amortization of prior service (credits) costs

      —       —       —       (0.9 )      (0.1 )      0.1   

Amortization of net losses (gains)

      94.6        62.1        66.4        (2.1 )      (3.2 )      (3.6 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net periodic benefit expense (income)

    $ 65.5      $ 40.9      $ 46.3      ($ 0.5 )    $ 0.1      $ 0.1   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

 

(1)

Service cost for pension benefits represents the administrative costs of the tax-qualified pension plan and the service cost for Rocketdyne’s bargaining unit employees from the acquisition date of June 14, 2013 to November 30, 2013.

 

(2)

The actual return and rate of return on plan assets are as follows:

 

     Year Ended  
         2013             2012             2011      
     (In millions, except rate of return)  

Actual return on plan assets

    $ 150.2      $ 81.2      $ 54.5   

Actual rate of return on plan assets

      12.5 %      6.5 %      3.8 % 
Schedule of Assumptions Used to Determine Benefit Obligations

The Company used the following assumptions, calculated based on a weighted-average, to determine the benefit obligations for the applicable fiscal year.

 

     Pension
Benefits		     Medical and
Life Insurance
Benefits		  
     2013     2012     2013     2012  

Discount rate

      4.54 %      3.68 %      3.98 %      3.24 % 

Discount rate (benefit restoration plan)

      4.65 %      3.77 %      *        *   

Ultimate healthcare trend rate

      *        *        5.00 %      5.00 % 

Initial healthcare trend rate (pre 65/post 65)

      *        *        8.50 %      8.75 % 

Year ultimate rate attained (pre 65/post 65)

      *        *        2021        2021   
Schedule of Assumptions Used to Determine Periodic Benefit Expense (Income)

The Company used the following assumptions, calculated based on a weighted-average, to determine the periodic benefit expense (income) for the applicable fiscal year.

 

     Pension Benefits     Medical and
Life Insurance Benefits		  
     2013     2012     2011     2013     2012     2011  

Discount rate

      3.68 %      4.95 %      5.21 %      3.24 %      4.58 %      4.65 % 

Discount rate (benefit restoration plan)

      3.77 %      4.98 %      5.34 %      *        *        *   

Expected long-term rate of return on plan assets

      8.00 %      8.00 %      8.00 %      *        *        *   

Ultimate healthcare trend rate

      *        *        *        5.00 %      5.00 %      5.00 % 

Initial healthcare trend rate (pre 65/post 65)

      *        *        *        8.75 %     9.00 %     9.00 %

Initial healthcare trend rate (pre 65/post 65)

      *        *        *        2021        2021        2021   

 

 

*

Not applicable
Schedule of One Percentage Point Change in Assumptions Effects on Projected Benefit Obligations

A one percentage point change in the key assumptions would have the following effects on the projected benefit obligations as of November 30, 2013 and on expense for fiscal 2013:

 

     Pension Benefits and
Medical and Life Insurance
Benefits Discount Rate		     Expected Long-term
Rate of Return		     Assumed Healthcare
Cost Trend Rate		  
     Net Periodic
Benefit Expense		     Projected
Benefit
Obligation		     Net Periodic Pension
Benefit Expense		     Net Periodic
Medical and Life
Insurance
Benefit Expense		     Accumulated
Benefit
Obligation		  
     (In millions)  

1% decrease

    $ 26.8      $ 159.5      $ 12.1      $ (0.5 )    $ (1.6 ) 

1% increase

      (22.8 )      (134.8 )      (12.1 )      0.5        1.8   
Schedule of Pension Plans Allocations by Asset Category

The Company’s pension plans asset allocations as of November 30, 2013 and 2012, by asset category, are as follows:

 

     As of November 30,  
     2013     2012  

Cash and cash equivalents

      21 %      26 % 

Equity securities

      30        25   

Fixed income

      18        21   

Real estate investments

      1        2   

Private equity holdings

      8        6   

Alternative investments

      22        20   
  

 

 

    

 

 

  

Total

      100 %      100 % 
  

 

 

    

 

 

  
Schedule of Fair Value of Pension Plan Assets and Liabilities by Asset Category

The fair value of the Company’s pension plan assets and liabilities by asset category and by level were as follows:

 

     Total     Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)		     Significant
Other
Observable
Inputs
(Level 2)		     Significant
Unobservable
Inputs
(Level 3)		  
     (In millions)  

November 30, 2013

         

Cash and cash equivalents

    $ 272.6      $ 147.6      $ 125.0      $ —  

Equity securities:

         

Domestic equity securities

      422.1        417.0        4.8        0.3   

International equity securities

      42.5        42.2        0.3        —   

Derivatives:

         

Written options

      (0.1 )      (0.1 )     —       —  

Short sales

      (81.7 )      (81.7 )      —       —  

Fixed income:

         

U.S. government securities

      5.9        0.3        5.6        —  

Corporate debt securities

      91.6        1.2        90.0        0.4   

Asset-backed securities

      131.9        —       131.9        —  

Derivatives:

         

Purchased options

      0.1        —        0.1       —  

Short sales

      (9.1 )      (4.5 )      (4.6 )      —  

Forward exchange contracts

      (0.2 )      —       (0.2 )      —  

Real estate investments

      15.7        —       —       15.7   

Private equity holdings

      97.7        —       —       97.7   

Alternative investments

      276.5        —       —       276.5   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total

      1,265.5      $ 522.0      $ 352.9      $ 390.6   
  

 

 

    

 

 

    

 

 

    

 

 

  

Receivables

      7.4         

Payables

      (14.5 )       
  

 

 

        

Total

    $ 1,258.4         
  

 

 

        

 

     Total     Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)		     Significant
Other
Observable
Inputs
(Level 2)		     Significant
Unobservable
Inputs
(Level 3)		  
     (In millions)  

November 30, 2012

         

Cash and cash equivalents

    $ 319.3      $ 200.3      $ 119.0      $ —  

Equity securities:

         

Domestic equity securities

      388.3        380.1        7.9        0.3   

International equity securities

      56.6        56.2        0.3        0.1   

Derivatives:

         

Purchased options

      0.7        0.7        —       —  

Written options

      (1.0 )      (1.0 )      —       —  

Short sales

      (134.7 )      (134.7 )      —       —  

Fixed income:

         

U.S. government securities

      6.0        0.4        5.6        —  

Corporate debt securities

      79.1        —       78.7        0.4   

Asset-backed securities

      183.7        —       183.7        —  

Short sales

      (7.6 )      (0.4 )      (7.2 )      —  

Forward exchange contracts

      0.2        —       0.2        —  

Real estate investments

      16.7        —       —       16.7   

Private equity holdings

      74.9        —       —       74.9   

Alternative investments

      253.2        —       —       253.2   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total

      1,235.4      $ 501.6      $ 388.2      $ 345.6   
  

 

 

    

 

 

    

 

 

    

 

 

  

Receivables

      28.6         

Payables

      (20.9 )       
  

 

 

        

Total

    $ 1,243.1         
  

 

 

        
Schedule of Changes in Fair Value of Level 3 Investments

Changes in the fair value of the Level 3 investments were as follows:

 

    November 30,
2012		     Unrealized
Gains (Losses)
on Plan Assets		     Realized
Gains (Losses)
on Plan Assets		     Purchases,
Issuances, and
Settlements		     Transfers
out of
Level 3		     November 30,
2013		  
    (In millions)  

Equity securities:

            

Domestic equity securities

   $ 0.3      $ —      $ —     $ —     $ —      $ 0.3   

International equity securities

     0.1        —       —       —       (0.1 )      —   

Fixed income:

            

Corporate debt securities

     0.4        —        —        —          0.4   

Asset-backed securities

     —        0.1        (0.1 )      —         —  

Real estate investments

     16.7        (0.2 )      —       (0.8 )       15.7   

Private equity holdings

     74.9        (9.1 )      —       31.9          97.7   

Alternative investments

     253.2        41.8        2.5       (21.0 )       276.5   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 345.6      $ 32.6      $ 2.4      $ 10.1      $ (0.1 )    $ 390.6   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

    November 30,
2011		     Unrealized
Gains (Losses)
on Plan Assets		     Realized
Gains (Losses)
on Plan Assets		     Purchases,
Issuances, and
Settlements		     November 30,
2012		  
    (In millions)  

Equity securities:

          

Domestic equity securities

   $ 0.4      $ (0.1 )    $ —     $ —     $ 0.3   

International equity securities

     —       —       —       0.1        0.1   

Fixed income:

          

Foreign government securities

     0.2        (0.2 )      —       —       —  

Corporate debt securities

     6.7        0.1        0.7        (7.1 )      0.4   

Asset-backed securities

     —       0.3        (0.3 )      —       —  

Real estate investments

     19.6        (2.1 )      —       (0.8 )      16.7   

Private equity holdings

     72.0        2.7        —       0.2        74.9   

Alternative investments

     259.1        (5.9 )      —       —       253.2   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 358.0      $ (5.2 )    $ 0.4      $ (7.6 )    $ 345.6   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Schedule of Estimated Future Benefit Payments

The following presents estimated future benefit payments:

 

     Pension
Benefit
Payments		      Medical and Life Insurance Benefits  

Year Ending November 30,

       Gross Benefit
Payments		      Medicare D
Subsidy		      Net Benefit
Payments		  
     (In millions)  

2014

    $ 128.6       $ 7.7       $ 0.4       $ 7.3   

2015

      126.4         7.5         0.4         7.1   

2016

      123.7         7.4         0.4         7.0   

2017

      120.6         7.1         0.4         6.7   

2018

      117.2         6.7         0.2         6.5   

Years 2019 — 2023

      533.6         26.9         0.9         26.0