All U.S. employees have the option of contributing up to 75 percent of their pre-tax earnings to a 401(k) plan, subject to IRS limitations. We match up to the first 4 percent of each employee's pre-tax earnings, based on the employee's contributions. All employees are eligible for a separate annual retirement contribution to the 401(k) plan of 3 percent of pay, that is invested based on the election of the individual participant. The 3 percent contribution is in addition to our 4 percent matching contribution described above and is in lieu of participation in our defined benefit pension plan. The total contribution to the 401(k) plan for 2013 was $8,022 which included the cost of the 4 percent company match of $4,366 and the additional 3 percent contribution of $3,656. The total contributions to the 401(k) plan were $6,606 and $5,211 in 2012 and 2011, respectively.

The defined contribution plan liability recorded in the Consolidated Balance Sheets was $5,269 and $6,702 in 2013 and 2012, respectively for the U.S. Plan and several statutorily required non-U.S. Plans.

Noncontributory defined benefit pension plans cover all U.S. employees employed prior to January 1, 2007. Benefits for these plans are based primarily on each employee's years of service and average compensation. During 2011, we announced significant changes to our U.S. Pension Plan (the Plan). The changes included: benefits under the Plan were locked-in using service and salary as of May 31, 2011, participants no longer earn benefits for future service and salary as they had in the past, affected participants receive a three percent increase to the locked-in benefit for every year they continue to work for us and we are making a retirement contribution of three percent of eligible compensation to the 401(k) Plan for those participants. These changes to the Plan represented a plan curtailment as there is no longer a service cost component in the net periodic pension cost as all participants are considered inactive in the Plan. The funding policy is consistent with the funding requirements of federal law and regulations. Plan assets consist principally of listed equity securities and bonds. Other U.S. postretirement benefits are funded through a Voluntary Employees' Beneficiaries Association Trust.

Health care and life insurance benefits are provided for eligible retired employees and their eligible dependents. These benefits are provided through various insurance companies and health care providers. Costs are accrued during the years the employee renders the necessary service.

Certain non-U.S. subsidiaries provide pension benefits for their employees consistent with local practices and regulations. These plans are primarily defined benefit plans covering substantially all employees upon completion of a specified period of service. Benefits for these plans are generally based on years of service and annual compensation.

Following is a reconciliation of the beginning and ending balances of the benefit obligation and fair value of plan assets as of November 30, 2013 and December 1, 2012:

		Pension Benefits								Other Postretirement
		U.S. Plans				Non-U.S. Plans				Benefits
		2013		2012		2013		2012		2013		2012
Change in projected benefit obligation
Benefit obligation at beginning of year	$	394,623	$	326,627	$	204,180	$	137,439	$	63,206	$	53,749
Acquisition		-		-		-		32,162		-		-
Service cost		106		90		1,799		1,457		623		541
Interest cost		14,719		16,098		7,486		8,222		2,133		2,469
Participant contributions		-		-		-		-		523		665
Actuarial (gain)/loss		(44,510)		67,827		(3,633)		34,527		(11,524)		10,157
Other		-		-		-		(139)		-		-
Curtailments		(796)		-		(436)		(228)		-		-
Settlement		-		-		(1,325)		(203)		-		-
Divestitures		-		-		-		(1,237)		-		-
Benefits paid		(16,474)		(16,019)		(7,927)		(7,640)		(4,150)		(4,375)
Currency change effect		-		-		6,263		(180)		-		-
Benefit obligation at end of year		347,668		394,623		206,407		204,180		50,811		63,206

Change in plan assets
Fair value of plan assets at beginning of year		332,308		304,540		164,086		124,303		42,569		37,289
Acquisition		-		-		-		18,839		-		-
Actual return on plan assets		40,905		42,282		16,473		19,272		11,964		5,367
Employer contributions		1,494		1,505		2,027		4,635		3,290		3,623
Participant contributions		-		-		-		-		523		665
Other		-		-		-		(139)		-		-
Benefits paid¹		(16,474)		(16,019)		(5,871)		(2,764)		(4,150)		(4,375)
Currency change effect		-		-		5,437		(60)		-		-
Fair value of plan assets at end of year		358,233		332,308		182,152		164,086		54,196		42,569
Plan assets in excess of (less than) benefit obligation as of year end	$	10,565	$	(62,315)	$	(24,255)	$	(40,094)	$	3,385	$	(20,637)

1 Amount excludes benefit payments made from sources other than plan assets.


Amounts in accumulated other comprehensive income that have not been recognized as components of net periodic benefit cost		Pension Benefits								Other Postretirement
		U.S. Plans				Non-U.S. Plans				Benefits
		2013		2012		2013		2012		2013		2012
Unrecognized actuarial loss	$	100,579	$	170,813	$	64,290	$	77,905	$	25,988	$	51,469
Unrecognized prior service cost (benefit)		147		298		(21)		(24)		(6,317)		(10,452)
Ending balance	$	100,726	$	171,111	$	64,269	$	77,881	$	19,671	$	41,017


		Pension Benefits								Other Postretirement
		U.S. Plans				Non-U.S. Plans				Benefits
		2013		2012		2013		2012		2013		2012
Statement of financial position as of fiscal year-end
Non-current assets	$	29,560	$	-	$	8,959	$	384	$	6,858	$	-
Accrued benefit cost
Current liabilities		(1,505)		(1,495)		(2,711)		(3,291)		(314)		(311)
Non-current liabilities		(17,490)		(60,820)		(30,503)		(37,187)		(3,159)		(20,326)
Ending balance	$	10,565	$	(62,315)	$	(24,255)	$	(40,094)	$	3,385	$	(20,637)

The accumulated benefit obligation of the U.S. pension and other postretirement plans was $385,819 at November 30, 2013 and $365,117 at December 1, 2012. The accumulated benefit obligation of the non-U.S. pension plans was $197,750 at November 30, 2013 and $129,166 at December 1, 2012.

The following amounts relate to pension plans with accumulated benefit obligations in excess of plan assets as of November 30, 2013 and December 1, 2012:

		Pension Benefits and Other Postretirement Benefits
		U.S. Plans				Non-U.S. Plans
		2013		2012		2013		2012
Accumulated benefit obligation	$	18,673	$	439,974	$	116,265	$	138,318
Fair value of plan assets		-		374,877		91,708		107,727

The following amounts relate to pension plans with projected benefit obligations in excess of plan assets as of November 30, 2013 and December 1, 2012:

		Pension Benefits and Other Postretirement Benefits
		U.S. Plans				Non-U.S. Plans
		2013		2012		2013		2012
Projected benefit obligation	$	18,996	$	457,829	$	124,922	$	148,206
Fair value of plan assets		-		374,877		91,708		107,727

Information about the expected cash flows follows:

		Pension Benefits				Other
		U.S. Plans		Non-U.S. Plans		Postretirement Benefits
Employer contributions
2014	$	1,505	$	765	$	3,721
Expected benefit payments
2014	$	17,325	$	9,738	$	3,721
2015		17,791		8,605		3,723
2016		18,364		8,644		3,728
2017		19,075		9,016		3,736
2018		19,649		9,185		3,738
2019-2023		105,633		49,727		18,346

Components of net periodic benefit cost and other supplemental information for the years ended November 30, 2013, December 1, 2012 and December 3, 2011 follow:

		Pension Benefits												Other
		U.S. Plans						Non-U.S. Plans						Postretirement Benefits
Net periodic cost (benefit)		2013		2012		2011		2013		2012		2011		2013		2012		2011
Service cost	$	106	$	90	$	2,304	$	1,799	$	1,457	$	1,364	$	623	$	541	$	514
Interest cost		14,719		16,098		16,736		7,486		8,222		7,449		2,133		2,469		2,676
Expected return on assets		(22,720)		(23,758)		(25,438)		(9,390)		(8,021)		(7,881)		(3,725)		(3,263)		(3,087)
Amortization:
Prior service cost		49		49		24		(4)		(4)		(4)		(4,134)		(4,693)		(4,693)
Actuarial (gain)/ loss		6,742		3,858		3,689		3,778		2,487		2,723		5,717		5,155		5,932
Divestitures		-		-		-		-		7		-		-		-		-
Curtailment (gain)/loss		102		-		101		53		46		-		-		-		-
Settlement charge/(credit)		-		-		-		153		65		-		-		-		-
Net periodic benefit cost (benefit)	$	(1,002)	$	(3,663)	$	(2,584)	$	3,875	$	4,259	$	3,651	$	614	$	209	$	1,342

		Pension Benefits
		U.S. Plans		Non-U.S. Plans		Postretirement benefits
Amounts expected to be amortized from accumulated other comprehensive income into net periodic benefit costs over next fiscal year as of November 30, 2013
Amortization of prior service cost (benefit)	$	29	$	(4)	$	(3,771)
Amortization of net actuarial (gain) loss		4,575		3,002		2,709
	$	4,604	$	2,998	$	(1,062)

	Pension Benefits						Other
Weighted-average assumptions used to	U.S. Plans			Non-U.S. Plans			Postretirement Benefits
Determine benefit obligations	2013	2012	2011	2013	2012	2011	2013	2012	2011
Discount rate	4.74%	3.81%	5.05%	3.74%	3.79%	5.36%	4.34%	3.46%	4.73%
Rate of compensation increase¹	4.50%	4.50%	5.00%	1.84%	1.87%	2.14%	N/A	N/A	N/A

Weighted-average assumptions used to
Determine net costs for years ended	2013	2012	2011	2013	2012	2011	2013	2012	2011
Discount rate	3.81%	5.05%	5.46%	3.74%	5.26%	5.10%	3.46%	4.73%	4.96%
Expected return on plan assets	7.75%	8.00%	8.00%	5.96%	6.08%	6.18%	8.75%	8.75%	8.75%
Rate of compensation increase	4.50%	5.00%	4.17%	1.84%	1.86%	2.13%	N/A	N/A	N/A

1 Benefits under the U.S. Pension Plan were locked-in as of May 31, 2011 and no longer include compensation increases. The 4.50 percent rate for 2013 and 2012 and the 5.00 percent rate for 2011 are for the supplemental executive retirement plan only.

The discount rate assumption is determined using an actuarial yield curve approach, which results in a discount rate that reflects the characteristics of the plan. The approach identifies a broad population of corporate bonds that meet the quality and size criteria for the particular plan. We use this approach rather than a specific index that has a certain set of bonds that may or may not be representative of the characteristics of our particular plan. A higher discount rate decreases the present value of the pension obligations. The discount rate for the U.S. pension plan was 4.77 percent at November 30, 2013, as compared to 3.83 percent at December 1, 2012 and 5.07 percent at December 3, 2011. Net periodic pension cost for a given fiscal year is based on assumptions developed at the end of the previous fiscal year. A discount rate reduction of 0.5 percentage points at November 30, 2013 would increase pension and other postretirement plan expense approximately $318 (pre-tax) in fiscal 2014. Discount rates for non-U.S. plans are determined in a manner consistent with the U.S. plan.

The expected long-term rate of return on plan assets assumption for the U.S. pension plan was 7.75 percent in 2013 compared to 8.00 percent for 2012 and 8.00 percent for 2011. Our expected long-term rate of return on U.S. plan assets was based on our target asset allocation assumption of 60 percent equities and 40 percent fixed-income. Management, in conjunction with our external financial advisors, determines the expected long-term rate of return on plan assets by considering the expected future returns and volatility levels for each asset class that are based on historical returns and forward-looking observations. For 2013 the expected long-term rate of return on the target equities allocation was 8.5 percent and the expected long-term rate of return on the target fixed-income allocation was 5.0 percent. The total plan rate of return assumption included an estimate of the impact of diversification and the plan expense. A change of 0.5 percentage points for the expected return on assets assumption would impact U.S. net pension and other postretirement plan expense by approximately $2,062 (pre-tax).

Management, in conjunction with our external financial advisors, uses the actual historical rates of return of the asset categories to assess the reasonableness of the expected long-term rate of return on plan assets.

The expected long-term rate of return on plan assets assumption for non-U.S. pension plans was a weighted-average of 5.96 percent in 2013 compared to 6.08 percent in 2012 and 6.18 percent in 2011. The expected long-term rate of return on plan assets assumption used in each non-U.S. plan is determined on a plan-by-plan basis for each local jurisdiction and is based on expected future returns for the investment mix of assets currently in the portfolio for that plan. Management, in conjunction with our external financial advisors, develops expected rates of return for each plan, considers expected long-term returns for each asset category in the plan, reviews expectations for inflation for each local jurisdiction, and estimates the impact of active management of the plan's assets. Our largest non-U.S. pension plans are in Germany and the United Kingdom respectively. The expected long-term rate of return on plan assets for Germany was 5.75 percent and the expected long-term rate of return on plan assets for the United Kingdom was 6.6 percent. Management, in conjunction with our external financial advisors, uses actual historical returns of the asset portfolio to assess the reasonableness of the expected rate of return for each plan.

Sensitivity Information: A one-percentage point change in the health care cost trend rate would have the following effects on the November 30, 2013 service and interest cost and the accumulated postretirement benefit obligation at November 30, 2013:

The asset allocation for the company’s U.S. and non-U.S. pension plans at the end of 2013 and 2012 follows.

	U.S. Pension Plans			Non-U.S. Pension Plans			Other Postretirement Plans
	Target	Percentage of Plan Assets at Year-End		Target	Percentage of Plan Assets at Year-End		Target	Percentage of Plan Assets at Year-End
Asset Category	2013	2013	2012	2013	2013	2012	2013	2013	2012
Equities	60.0%	61.9%	60.4%	50.2%	50.2%	48.0%	0.0%	0.0%	0.0%
Fixed income	40.0%	37.3%	38.8%	48.4%	46.4%	48.6%	0.0%	0.0%	0.0%
Real Estate	0.0%	0.0%	0.0%	1.4%	1.1%	1.1%	0.0%	0.0%	0.0%
Insurance	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	100.0%	99.4%	98.7%
Cash	0.0%	0.8%	0.8%	0.0%	2.3%	2.3%	0.0%	0.6%	1.3%
Total	100%	100%	100%	100%	100%	100%	100%	100%	100%

Plan assets are held in trust and invested in mutual funds, separately managed accounts and other commingled investment vehicles holding U.S. and non-U.S. equity securities, fixed income securities and other investment classes. We employ a total return approach whereby a mix of equities and fixed income investments are used to maximize the long-term return of plan assets for a prudent level of risk. Futures and options may also be used to enhance risk-adjusted long-term returns while improving portfolio diversification and duration. Risk management is accomplished through diversification across asset classes, utilization of multiple investment managers and general plan-specific investment policies. Risk tolerance is established through careful consideration of the plan liabilities, plan funded status and our assessment of our overall liquidity position. This asset allocation policy mix is reviewed annually and actual versus target allocations are monitored regularly and rebalanced on an as-needed basis. Plan assets are invested using a combination of active and passive investment strategies. Passive, or “indexed” strategies, attempt to mimic rather than exceed the investment performance of a market benchmark. The plans' active investment strategies employ multiple investment management firms which in aggregate cover a range of investment styles and approaches. Performance is monitored and compared to relevant benchmarks on a regular basis.

The U.S. pension plans consist of two plans: a pension plan and a supplemental executive retirement plan (SERP). There were no assets in the SERP in 2013 and 2012. Consequently, all of the data disclosed in the asset allocation table for the U.S. pension plans pertain to our U.S. pension plan.

During 2013 we maintained our assets within the allowed ranges of the target asset allocation mix of 60 percent equities and 40 percent fixed income plus or minus 5 percent and continued our focus to reduce volatility of plan assets in future periods and to more closely match the duration of the assets with the duration of the liabilities of the plan. We plan to maintain the portfolio at this target allocation in 2014.

The non-U.S. pension plans consist of all the pension plans administered by us outside the U.S., principally consisting of plans in Germany, the United Kingdom, France and Canada. During 2012 we acquired plans in the United Kingdom, Germany and France. During 2013 we maintained our assets for the non-U.S. pension plans at the specific target asset allocation mix determined for each plan plus or minus the allowed rate and continued our focus to reduce volatility of plan assets in future periods and to more closely match the duration of the assets with the duration of the liabilities of the individual plans. We plan to maintain the portfolios at their respective target asset allocations in 2014.

Other postretirement benefits plans consist of two U.S. plans: a retiree medical health care plan and a group term life insurance plan. There were no assets in the group term life insurance plan for 2013 and 2012. Consequently, all of the data disclosed in the asset allocation table for other postretirement plans pertain to our retiree medical health care plan. Our investment strategy for other postretirement benefit plans is to own insurance policies that maintain an asset allocation nearly completely in equities. These equities are invested in a passive portfolio indexed to the S&P 500. Our large weighting to equities in these plans is driven by the investment options available and the relative underfunded status of the plans.

The following table presents plan assets categorized within a three-level fair value hierarchy as described in Note 14 to the Consolidated Financial Statements.

	November 30, 2013
U.S. Pension Plans		Level 1		Level 2		Level 3	Total Assets
Equities	$	132,768	$	88,946	$	-	$	221,714
Fixed income		50,925		82,411		463		133,799
Cash		2,720		-		-		2,720
Total	$	186,413	$	171,357	$	463	$	358,233

Non-U.S. Pension Plans		Level 1		Level 2		Level 3	Total Assets
Equities	$	34,045	$	57,380	$	-	$	91,425
Fixed income		48,767		35,158		590		84,515
Real Estate		-		-		1,940		1,940
Cash		4,272		-		-		4,272
Total	$	87,084	$	92,538	$	2,530	$	182,152

Other Postretirement Benefits		Level 1		Level 2		Level 3	Total Assets
Insurance	$	-	$	-	$	53,875	$	53,875
Cash		321		-		-		321
Total	$	321	$	-	$	53,875	$	54,196


	December 1, 2012
U.S. Pension Plans		Level 1		Level 2		Level 3	Total Assets
Equities	$	121,792	$	78,920	$	-	$	200,712
Fixed income		51,994		76,445		516		128,955
Cash		2,641		-		-		2,641
Total	$	176,427	$	155,365	$	516	$	332,308

Non-U.S. Pension Plans		Level 1		Level 2		Level 3	Total Assets
Equities	$	30,086	$	48,651	$	-	$	78,737
Fixed income		46,340		32,937		514		79,791
Real Estate		-		-		1,768		1,768
Cash		3,790		-		-		3,790
Total	$	80,216	$	81,588	$	2,282	$	164,086

Other Postretirement Benefits		Level 1		Level 2		Level 3	Total Assets
Insurance	$	-	$	-	$	42,001	$	42,001
Cash		568		-		-		568
Total	$	568	$	-	$	42,001	$	42,569

The definitions of fair values of our pension and other postretirement benefit plan assets at November 30, 2013 and December 1, 2012 by asset category are as follows:

Equities—Primarily publicly traded common stock for purposes of total return and to maintain equity exposure consistent with policy allocations. Investments include: (i) U.S. and non-U.S. equity securities and mutual funds valued at closing prices from national exchanges; and (ii) commingled funds valued at unit values or net asset values provided by the investment managers, which are based on the fair value of the underlying investments.

Fixed income—Primarily corporate and government debt securities for purposes of total return and managing fixed income exposure to policy allocations. Investments include (i) mutual funds valued at closing prices from national exchanges, (ii) corporate and government debt securities valued at closing prices from national exchanges, (iii) commingled funds valued at unit values or net asset value provided by the investment managers, which are based on the fair value of the underlying investments, and (iv) an annuity contract, the value of which is determined by the provider and represents the amount the plan would receive if the contract were cashed out at year-end.

Real Estate—Property fund for purposes of total return. Investment is a comingled property fund valued at unit value provided by the investment manager, which is based on a valuation performed by a third party provider retained by the investment manager.

Insurance—Insurance contracts for purposes of funding postretirement medical benefits. Fair values are the cash surrender values as determined by the providers which are the amounts the plans would receive if the contracts were cashed out at year end.

Cash–Cash balances on hand, accrued income and pending settlements of transactions for purposes of handling plan payments. Fair values are the cash balances as reported by the Trustees of the plans.

The following is a roll forward of the Level 3 investments of our pension and postretirement benefit plan assets during the year ended November 30, 2013:

U.S. Pension Plans		Fixed Income		Total
Level 3 balance at beginning of year	$	516	$	516
Purchases, sales, issuances and settlements, net		(53)		(53)
Level 3 balance at end of year	$	463	$	463


Non-U.S. Pension Plans		Fixed Income		Real Estate		Total
Level 3 balance at beginning of year	$	514	$	1,768	$	2,282
Net transfers into / (out of) level 3		33		(12)		21
Net gains		17		137		154
Currency change effect		26		47		73
Level 3 balance at end of year	$	590	$	1,940	$	2,530


Other Postretirement Benefits		Insurance		Total
Level 3 balance at beginning of year	$	42,001	$	42,001
Net transfers into / (out of) level 3		(213)		(213)
Purchases, sales, issuances and settlements, net		(343)		(343)
Net gains		12,430		12,430
Level 3 balance at end of year	$	53,875	$	53,875