Income Taxes

9 Months Ended

Aug. 28, 2011

Income Taxes [Abstract]

INCOME TAXES

NOTE 11:   INCOME TAXES

The effective income tax rate was 31.8% for the nine months ended August 28, 2011, compared to 59.3% for the same period ended August 29, 2010. The reduction in the effective tax rate as compared to the prior year was primarily caused by two significant discrete income tax charges recognized in the second quarter of 2010, described below, as well as an increase in 2011 of the proportion of earnings in foreign jurisdictions where the Company is subject to lower tax rates.

During the second quarter of 2010, the Company recorded a discrete tax expense of $14.2 million to recognize a valuation allowance to fully offset the amount of deferred tax assets in Japan and another discrete tax expense of $14.0 million to recognize the reduction in deferred tax assets as a result of the enactment of the Patient Protection and Affordable Care Act.

As of August 28, 2011, the Company’s total gross amount of unrecognized tax benefits was $148.7 million, of which $88.8 million would impact the effective tax rate, if recognized. As of November 28, 2010, the Company’s total gross amount of unrecognized tax benefits was $150.7 million, of which $87.2 million would have impacted the effective tax rate, if recognized.