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Retirement Benefits (Tables)
 6 Months Ended 12 Months Ended
May 31, 2013
Nov. 30, 2012
Components of Retirement Benefit Expense

Components of retirement benefit expense are:

 

     Pension Benefits     Postretirement Benefits  
     Three months ended  
     May 31,
2013		     May 31,
2012		     May 31,
2013		     May 31,
2012		  
     (In millions)  

Service cost

    $ 1.4      $ 1.1      $ 0.1      $ 0.1   

Interest cost on benefit obligation

      15.2        18.4        0.6        0.7   

Assumed return on plan assets

      (24.1 )      (24.8 )      —         —    

Amortization of prior service credits

      —         —         (0.2 )      —    

Recognized net actuarial losses (gains)

      23.7        15.5        (0.6 )      (0.7 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Retirement benefit expense (income)

    $ 16.2      $ 10.2      $ (0.1 )    $ 0.1   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

     Pension Benefits     Postretirement Benefits  
     Six months ended  
     May 31,
2013		     May 31,
2012		     May 31,
2013		     May 31,
2012		  
     (In millions)  

Service cost

    $ 2.7      $ 2.2      $ 0.1      $ 0.1   

Interest cost on benefit obligation

      30.4        36.8        1.2        1.5   

Assumed return on plan assets

      (48.2 )      (49.6 )      —         —    

Amortization of prior service credits

      —         —         (0.4 )      —    

Recognized net actuarial losses (gains)

      47.3        31.0        (1.1 )      (1.5 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Retirement benefit expense (income)

    $ 32.2      $ 20.4      $ (0.2 )    $ 0.1   
  

 

 

    

 

 

    

 

 

    

 

 

  
 
Changes in Prepayment Credits  

Changes in prepayment credits during fiscal 2012 were as follows (in millions):

 

Balance as of November 30, 2011

    $ 59.5   

Amount used to offset minimum required contribution as of December 1, 2011 as a result of the requirements under MAP-21

      (29.0 ) 

Adjustment for investment experience

      2.0   
  

 

 

  

Balance as of November 30, 2012

    $ 32.5   
  

 

 

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

Plan assets, benefit obligations, and the funded status of the plans were determined at November 30, 2012 and 2011 for fiscal 2012 and 2011, respectively.

 

     Pension Benefits     Medical and
Life Benefits		  
     As of November 30,  
     2012     2011     2012     2011  
     (In millions)  

Change in fair value of plan assets:

         

Fair value — beginning of year

    $ 1,296.8      $ 1,374.3      $ —        $ —     

Gain on plan assets

      81.2        54.5        —          —     

Employer contributions

      1.2        1.5        5.1        5.5   

Benefits paid(1)

      (136.1 )      (133.5 )      (5.1 )      (5.5 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Fair Value — end of year

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

 

 

    

 

 

    

 

 

    

 

 

  

Change in benefit obligation:

         

Benefit obligation — beginning of year

    $ 1,550.4      $ 1,566.6      $ 75.2      $ 78.9   

Service cost(2)

      4.5        3.9        0.1        0.1   

Interest cost

      73.5        78.4        3.3        3.5   

Actuarial losses (gains)

      225.4        35.0        2.3        (1.8 ) 

Benefits paid

      (136.1 )      (133.5 )      (5.1 )      (5.5 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Benefit obligation — end of year(3)

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

 

 

    

 

 

    

 

 

    

 

 

  

Funded status of the plans

    $ (474.6 )    $ (253.6 )    $ (75.8 )    $ (75.2 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Amounts Recognized in the Consolidated Balance Sheets:

         

Postretirement medical and life benefits, current

    $ —        $ —        $ (7.5 )    $ (6.8 ) 

Postretirement medical and life benefits, noncurrent

      —          —          (68.3 )      (68.4 ) 

Pension liability, current (component of other current liabilities)

      (1.2 )      (1.1 )      —          —     

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

      (18.9 )      (16.1 )      —          —     

Pension benefits, noncurrent

      (454.5 )      (236.4 )      —          —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Net Liability Recognized in the Consolidated Balance Sheets

    $ (474.6 )    $ (253.6 )    $ (75.8 )    $ (75.2 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) Benefits paid for medical and life benefits are net of the Medicare Part D Subsidy of $0.4 million and $0.5 million received in fiscal 2012 and 2011, respectively.
(2) Service cost for pension benefits represents the administrative costs of the tax-qualified pension plan.
(3) Pension benefit obligation includes $20.1 million in fiscal 2012 and $17.2 million in fiscal 2011 for the non-qualified plan.
Components of Net Periodic Benefit Expense  

Components of net periodic benefit expense are as follows:

 

     Pension Benefits     Medical and
Life Benefits		  
     Year Ended  
     2012     2011     2010     2012     2011     2010  
     (In millions)  

Service cost(1)

    $ 4.5      $ 3.9      $ 4.4      $ 0.1      $ 0.1      $ 0.2   

Interest cost on benefit obligation

      73.5        78.4        86.1        3.3        3.5        4.0   

Assumed return on plan assets(2)

      (99.2 )      (102.4 )      (107.8 )      —          —          —     

Amortization of prior service (credits) costs

      —          —          —          (0.1 )      0.1        0.1   

Amortization of net losses (gains)

      62.1        66.4        58.8        (3.2 )      (3.6 )      (3.9 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net periodic benefit expense

    $ 40.9      $ 46.3      $ 41.5      $ 0.1      $ 0.1      $ 0.4   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) Service cost for pension benefits represents the administrative costs of the tax-qualified pension plan.
(2) The actual return and rate of return on plan assets are as follows:

 

     Year Ended  
     2012     2011     2010  
     (In millions)  

Actual return on plan assets

    $ 81.2      $ 54.5      $ 172.3   

Actual rate of return on plan assets

      6.5 %      3.8 %      13.7 % 
Schedule of Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Expense  

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

 

     Pension
Benefits		     Medical and
Life Benefits		  
     2012     2011     2012     2011  

Discount rate (benefit obligations)

      3.68 %      4.95 %      3.24 %      4.58 % 

Discount rate (benefit restoration plan benefit obligations)

      3.77 %      4.98 %        *        * 

Discount rate (net periodic benefit expense)

      4.95 %      5.21 %      4.58 %      4.65 % 

Expected long-term rate of return on plan assets

      8.00 %      8.00 %        *        * 

Ultimate healthcare trend rate

        *        *      5.00 %      5.00 % 

Initial healthcare trend rate (benefit obligations pre 65/post 65)

        *        *      8.75 %      9.00 % 

Year ultimate rate attained (benefit obligations pre 65/post 65)

        *        *      2021        2021   

Initial healthcare trend rate (net periodic benefit expense pre 65/post 65)

        *        *      9.00 %      9.00 % 

Year ultimate rate attained (net periodic benefit expense pre 65/post 65)

        *        *      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, 2012 and on expense for fiscal 2012:

 

     Pension Benefits and
Medical and Life 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
Benefit Expense		     Accumulated
Benefit
Obligation		  
     (In millions)  

1% decrease

    $ 22.9      $ 193.5      $ 12.4      $ (0.5 )    $ (2.0 ) 

1% increase

      (19.7 )      (161.7 )      (12.4 )      0.5        2.2   
Schedule of Weighted Average Asset Allocation for Pension Plans  

The Company’s pension plans weighted average asset allocation and the investment policy asset allocation targets at November 30, 2012, by asset category, are as follows:

 

     Actual     Target(1)  

Cash and cash equivalents

      26 %      —   % 

Equity securities

      25        32   

Fixed income

      21        50   

Real estate investments

      2        2   

Private equity holdings

      6        —     

Alternative investments

      20        16   
  

 

 

    

 

 

  
     100 %      100 % 
  

 

 

    

 

 

  

 

(1) Assets rebalanced periodically to remain within a reasonable range of the target. The Company is in the process of evaluating and updating its overall investment strategy and asset allocation targets.
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, 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         
  

 

 

        

November 30, 2011

   

Cash and cash equivalents

    $ 302.2      $ 136.9      $ 165.3      $ —     

Equity securities:

         

Domestic equity securities

      305.2        299.1        5.7        0.4   

International equity securities

      148.3        147.6        0.7        —     

Derivatives:

         

Purchased options

      0.4        0.4        —          —     

Written options

      (2.6 )      (2.6 )      —          —     

Short sales

      (141.9 )      (141.9 )      —          —     

Fixed income:

         

U.S. government securities

      20.7        8.1        12.6        —     

Foreign government securities

      0.2        —          —          0.2   

Corporate debt securities

      101.2        1.3        93.2        6.7   

Asset-backed securities

      199.8        —          199.8        —     

Short sales

      (6.6 )      (3.4 )      (3.2 )      —     

Forward exchange contracts

      0.2        —          0.2        —     

Real estate investments

      19.6        —          —          19.6   

Private equity holdings

      72.0        —          —          72.0   

Alternative investments

      259.1        —          —          259.1   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total

      1,277.8      $ 445.5      $ 474.3      $ 358.0   
  

 

 

    

 

 

    

 

 

    

 

 

  

Receivables

      43.2         

Payables

      (24.2 )       
  

 

 

        

Total

    $ 1,296.8         
  

 

 

        
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,
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         (2.9 )      —          —          16.7   

Private equity holdings

      72.0         2.7        —          0.2        74.9   

Alternative investments

      259.1         (5.9 )      —          —          253.2   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ 358.0       $ (6.0 )    $ 0.4      $ (6.8 )    $ 345.6   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

 

     November 30,
2010		      Unrealized
Gains(Losses)
on Plan Assets		     Realized
Gains(Losses)
on Plan Assets		     Purchases,
Issuances, and
Settlements		     Transfers
out of
Level 3		     November 30,
2011		  
     (In millions)  

Equity securities:

              

Domestic equity securities

    $ —         $ 0.2      $ —        $ 0.2      $ —        $ 0.4   

Fixed income:

              

Foreign government securities

      0.2         —          —          —          —          0.2   

Corporate debt securities

      —           (0.1 )      —          6.8        —          6.7   

Asset-backed securities

      1.4         0.1        (0.1 )      (0.5 )      (0.9 )      —     

Real estate investments

      21.6         —          —          (2.0 )      —          19.6   

Private equity holdings

      83.1         4.6        —          (15.7 )      —          72.0   

Alternative investments

      137.1         8.0        (0.9 )      114.9        —          259.1   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ 243.4       $ 12.8      $ (1.0 )    $ 103.7      $ (0.9 )    $ 358.0   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Schedule of Estimated Future Benefit Payments  

The following presents estimated future benefit payments:

 

     Pension
Benefit
Payments		      Medical and Life Benefits  

Year Ending November 30,

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

2013

    $ 131.6       $ 8.0       $ 0.5       $ 7.5   

2014

      129.3         8.0         0.5         7.5   

2015

      126.5         7.8         0.5         7.3   

2016

      123.2         7.5         0.4         7.1   

2017

      119.8         7.2         0.4         6.8   

Years 2018 – 2022

      544.8         29.5         1.1         28.4