Note 18. Income Taxes

At August 31, 2014 and November 30, 2013, we had approximately $134.1 million and $126.8 million respectively, of total gross unrecognized tax benefits. The total amount of unrecognized benefit that, if recognized, would favorably affect the effective tax rate was $89.3 million and $85.5 million at August 31, 2014 and November 30, 2013, respectively.

We recognize interest accrued related to unrecognized tax benefits in Interest expense. Penalties, if any, are recognized in Other expenses in the Consolidated Statements of Earnings. At August 31, 2014 and November 30, 2013, we had interest accrued of approximately $28.4 million and $22.9 million, respectively, included in Accrued expenses and other liabilities. No material penalties were accrued for the nine months ended August 31, 2014 and year ended November 30, 2013.

We are currently under examination by the Internal Revenue Service and other major tax jurisdictions. We do not expect that resolution of these examinations will have a material effect on our consolidated financial position, but could have a material impact on the consolidated results of operations for the period in which resolution occurs.

The table below summarizes the earliest tax years that remain subject to examination in the major tax jurisdictions in which we operate:

 

Jurisdiction		Tax Year
United States			2006
United Kingdom			2012
California			2006
Connecticut			2006
Massachusetts			2010
New Jersey			2007
New York State			2001
New York City			2003