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Income Taxes | 12 Months Ended
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Nov. 30, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES The provision for income taxes for the years ended November 30 consists of the following:
(millions) | 2021 | 2020 | 2019
Income taxes |  |  |
Current |  |  |
Federal | $ | 71.7 |  | $ | 98.3 |  | $ | 52.3 |
State | 14.0 |  | 14.8 |  | 10.7 |
International | 71.0 |  | 73.0 |  | 73.5 |
| 156.7 |  | 186.1 |  | 136.5 |
Deferred |  |  |
Federal | 23.5 |  | 4.6 |  | 26.4 |
State | 16.8 |  | 0.5 |  | 3.6 |
International | (4.3) |  | (16.3) |  | (9.1) |
| 36.0 |  | (11.2) |  | 20.9 |
Total income tax expense (benefit) | $ | 192.7 |  | $ | 174.9 |  | $ | 157.4 |
The components of income from consolidated operations before income taxes for the years ended November 30 follow:
(millions) | 2021 | 2020 | 2019
Pretax income |  |  |
United States | $ | 588.1 |  | $ | 624.3 |  | $ | 569.0 |
International | 307.7 |  | 257.2 |  | 250.2 |
| $ | 895.8 |  | $ | 881.5 |  | $ | 819.2 |
A reconciliation of the U.S. federal statutory rate with the effective tax rate for the years ended November 30 follows:
| 2021 | 2020 | 2019 |  |
Federal statutory tax rate | 21.0 | % | 21.0 | % | 21.0 | % |  |
State income taxes, net of federal benefits | 1.6 |  | 1.5 |  | 1.6 |  |  |
International tax at different effective rates | 0.8 |  | 1.3 |  | 1.6 |  |  |
U.S. tax on remitted and unremitted earnings | 0.1 |  | 0.8 |  | 0.5 |  |  |
Stock compensation expense | (0.4) |  | (1.5) |  | (2.8) |  |  |
Changes in prior year tax contingencies | (2.5) |  | (0.3) |  | (0.3) |  |  |
Acquisition-related state tax rate change, net of federal benefits | 1.2 |  | — |  | — |  |  |
Valuation allowance release | (0.5) |  | (1.4) |  | — |  |  |
Intra-entity asset transfer | — |  | (1.1) |  | (1.8) |  |  |
Non-recurring benefit of U.S. Tax Act | — |  | — |  | (0.2) |  |  |
Other, net | 0.2 |  | (0.5) |  | (0.4) |  |  |
Total | 21.5 | % | 19.8 | % | 19.2 | % |  |
Deferred tax assets and liabilities are comprised of the following as of November 30:
(millions) | 2021 | 2020
Deferred tax assets |  |
Employee benefit liabilities | $ | 91.2 |  | $ | 121.9 |
Other accrued liabilities | 39.8 |  | 40.3 |
Inventory | 12.9 |  | 10.6 |
Tax loss and credit carryforwards | 56.6 |  | 59.7 |
Operating lease liabilities | 4.0 |  | 33.0 |
Other | 51.0 |  | 47.9 |
Valuation allowance | (32.7) |  | (31.5) |
| 222.8 |  | 281.9 |
Deferred tax liabilities |  |
Depreciation | 97.5 |  | 89.1 |
Intangible assets | 841.3 |  | 815.1 |
Lease ROU assets | 3.3 |  | 32.2 |
Other | 5.9 |  | 4.5 |
| 948.0 |  | 940.9 |
Net deferred tax liability | $ | (725.2) |  | $ | (659.0) |
At November 30, 2021, we have tax loss carryforwards of $186.2 million. Of these carryforwards, $1.1 million expire in 2022, $18.7 million from 2023 through 2024, $88.0 million from 2025 through 2038 and $78.4 million may be carried forward indefinitely. In addition, one of our non-U.S. subsidiaries has a capital loss carryforward of $5.0 million which may be carried forward indefinitely. At November 30, 2021, we also have U.S. foreign tax credit carryforwards of $7.0 million and $5.3 million which expire in 2030 and 2031, respectively. A valuation allowance has been provided to cover deferred tax assets that are not more likely than not realizable. The net increase of $1.2 million in the valuation allowance from November 30, 2020 to November 30, 2021 resulted primarily from the net increase of valuation allowances for net operating losses and other tax attributes in the U.S. and certain non-U.S. jurisdictions. In December 2017, "An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018" was enacted into law as Pub. L. 115-9 (hereafter referred to as the "U.S. Tax Act"). Prior to the U.S. Tax Act, we asserted that substantially all of the undistributed earnings of our international subsidiaries and joint ventures were considered indefinitely invested and accordingly, no deferred taxes were provided. Pursuant to the provisions of the U.S. Tax Act, these earnings were subjected to a one-time transition tax in 2018. The transition tax was recognized in 2018 and was based on cumulative earnings prior to the U.S. Tax Act. Our intent is to continue to reinvest undistributed earnings of our international subsidiaries and joint ventures indefinitely. As of November 30, 2021, we have $1.3 billion of earnings that are considered indefinitely reinvested. While federal income tax expense has been recognized as a result of the U.S. Tax Act, we have not provided any additional deferred taxes with respect to items such as foreign withholding taxes, state income tax or foreign exchange gain or loss. It is not practicable for us to determine the amount of unrecognized tax expense on these reinvested international earnings. The following table summarizes the activity related to our gross unrecognized tax benefits for the years ended November 30:
(millions) | 2021 | 2020 | 2019
Balance at beginning of year | $ | 39.3 |  | $ | 32.0 |  | $ | 27.9 |
Additions for current year tax positions | 4.8 |  | 7.8 |  | 6.6 |
Additions for prior year tax positions | 0.1 |  | 2.5 |  | 0.6 |
Reductions of prior year tax positions | (11.6) |  | — |  | (0.3) |
Statute expirations | (6.0) |  | (4.2) |  | (2.5) |
Settlements | (0.2) |  | — |  | — |
Foreign currency translation | 0.4 |  | 1.2 |  | (0.3) |
Balance at November 30 | $ | 26.8 |  | $ | 39.3 |  | $ | 32.0 |
As of November 30, 2021, 2020, and 2019, if recognized, $26.8 million, $39.3 million and $32.0 million, respectively, of the unrecognized tax benefits would affect the effective rate. We record interest and penalties on income taxes in income tax expense. We recognized interest and penalty expense (benefit) of $(3.7) million, $0.8 million and $2.1 million in 2021, 2020 and 2019, respectively. As of November 30, 2021 and 2020, we had accrued $4.7 million and $8.3 million, respectively, of interest and penalties related to unrecognized tax benefits. Tax settlements or statute of limitation expirations could result in a change to our uncertain tax positions. We believe that the reasonably possible total amount of unrecognized tax benefits as of November 30, 2021 that could decrease in the next 12 months as a result of various statute expirations, audit closures and/or tax settlements would not be material. We file income tax returns in the U.S. federal jurisdiction and various state and non-U.S. jurisdictions. The open years subject to tax audits vary depending on the tax jurisdictions. In the U.S federal jurisdiction, we are no longer subject to income tax audits by taxing authorities for years before 2018. In other major jurisdictions, we are no longer subject to income tax audits by taxing authorities for years before 2014. We are under normal recurring tax audits in the U.S. and in several jurisdictions outside the U.S. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, we believe that our reserves for uncertain tax positions are adequate to cover existing risks and exposures.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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