5. Income Taxes

The income tax provision in continuing operations for fiscal 2015, fiscal 2014 and fiscal 2013 is summarized as follows:

	For the Fiscal Years Ended,
	Nov. 30, 2015			Nov. 30, 2014			Nov. 30, 2013
Current federal	$	(83	)	$	—		$	—
Current state and local		—			—			—
Deferred federal		(217	)		356			(1,076	)
Deferred state and local		(80	)		(452	)		84

Total income tax provision	$	(380	)	$	(96	)	$	(992	)

In fiscal 2015 and fiscal 2014, Griffin decreased its expected realization of the tax benefit related to its Connecticut state net operating loss carryforwards and Connecticut state other temporary differences. These decreases were based on management's projections of taxable income attributable to the state of Connecticut in future years that would generate income taxes in excess of capital based taxes. Charges of approximately $87 and $375 are reflected in the fiscal 2015 and fiscal 2014 tax provisions, respectively, for state taxes to reflect the expected lower realization of certain state tax benefits.

Griffin did not recognize a current tax benefit in fiscal 2015, fiscal 2014 or fiscal 2013 from the exercise of employee stock options. In fiscal 2015, Griffin utilized net operating loss carryforwards to offset taxable income. A benefit was not recorded in fiscal 2014 and fiscal 2013 because Griffin did not have taxable income. As of November 30, 2015, Griffin has an unrecognized tax benefit of $1,176 for the effect of employee stock options exercised in fiscal years 2006 through 2015. In fiscal 2015 and fiscal 2014, the deferred tax asset related to non-qualified stock options was reduced by $9 and $4, respectively, as a result of exercises and forfeitures of those options. There were no adjustments to deferred tax assets for exercises and forfeitures of non-qualified stock options in fiscal 2013.

Included in total income (loss) from Griffin's discontinued operations, net of tax, is an income tax provision of $115 for fiscal 2014 and an income tax benefit of $4,411 for fiscal 2013.

The income tax provision in fiscal 2015 is net of the effect of recording a benefit related to valuation allowances on certain state deferred tax assets of $76, less a federal income tax expense of $26. The income tax (provision) benefit for discontinued operations in fiscal 2014 and fiscal 2013 is net of the effect of recording valuation allowances on certain state deferred tax assets for state net operating losses of Imperial. The effect on the income tax provision for the valuation allowances in fiscal 2014 and fiscal 2013 were charges of $24 and $93, respectively, less federal income tax benefits of $8 and $33, respectively. The establishment of the valuation allowances reflects management's determination that it is more likely than not that Griffin will not generate sufficient taxable income in the future to fully utilize certain state net operating loss carryforwards.

Other comprehensive income (loss) includes deferred tax (expense) benefit as follows:

	For the Fiscal Years Ended,
	Nov. 30, 2015			Nov. 30, 2014		Nov. 30, 2013
Mark to market adjustment on Centaur Media plc	$	(16	)	$	17	$	213
Measurement of the funded status of the defined postretirement program		—			181		(40	)
Fair value adjustment of Griffin's cash flow hedges		164			37		(359	)

Total income tax benefit (expense) included in other comprehensive income (loss)	$	148		$	235	$	(186	)

The differences between the income tax provision at the United States statutory income tax rates and the actual income tax provision on continuing operations for fiscal 2015, fiscal 2014 and fiscal 2013 are as follows:

	For the Fiscal Years Ended,
	Nov. 30, 2015			Nov. 30, 2014			Nov. 30, 2013
Tax (provision) benefit at statutory rate	$	(282	)	$	403		$	(1,016	)
State and local taxes, including valuation allowance, net of federal tax effect		(80	)		(457	)		55
Permanent items		(23	)		(43	)		(39	)
Other		5			1			8

Total income tax provision	$	(380	)	$	(96	)	$	(992	)

The state and local income tax expense, net of federal tax effect, principally reflects a decrease in the expected realization of the tax benefit related to Connecticut state net operating loss carryforwards and Connecticut state other temporary differences for fiscal 2015 and fiscal 2014. The state and local income tax expense, net of federal tax effect, for fiscal 2013 principally relfects deferred tax expense due to the variations in income apportionment among Griffin's multiple state filings.

The significant components of Griffin's deferred tax assets and deferred tax liabilities are as follows:

	Nov. 30, 2015			Nov. 30, 2014
Deferred tax assets:
Deferred revenue	$	3,587		$	2,836
Federal net operating loss carryforwards		2,673			3,417
Retirement benefit plans		1,547			1,496
Cash flow hedges		1,022			859
Non-qualified stock options		847			794
State net operating loss carryforwards		554			670
Charitable contributions		179			239
Conditional asset retirement obligations		112			112
Other		51			40

Total deferred tax assets		10,572			10,463
Valuation allowances		(345	)		(395	)

Net deferred tax assets		10,227			10,068

Deferred tax liabilities:
Real estate assets		(2,666	)		(2,547	)
Deferred rent		(985	)		(882	)
Prepaid insurance		(113	)		(142	)
Property and equipment		(44	)		(39	)
Investment in Centaur Media plc		(38	)		(22	)
Other		(543	)		(440	)

Total deferred tax liabilities		(4,389	)		(4,072	)

Net total deferred tax assets	$	5,838		$	5,996

At November 30, 2015, Griffin had federal net operating loss carryforwards of approximately $6,616 with expirations ranging from fifteen to nineteen years and state net operating loss carryforwards of approximately $22,630, principally in Connecticut, with expirations ranging from seven to twenty years. Management has determined that a valuation allowance is required for net operating loss carryforwards in certain states (other than Connecticut) related to Imperial. Realization of the tax benefits related to the Connecticut state net operating loss carryforwards, which are not subject to valuation allowances, and the state effective tax rates at which those benefits will be realized is dependent upon future results of operations. Differences between forecasted and actual future operating results could adversely impact Griffin's ability to realize tax benefits from Connecticut state net operating losses. Therefore, the deferred tax assets relating to Connecticut state net operating loss carryforwards could be reduced in the future if estimates of future taxable income are reduced. Griffin has evaluated the likelihood that it will realize the benefits of its deferred tax assets. Based on a significant amount of appreciated assets, primarily real estate, held by Griffin and the significant length of time expected before Griffin's deferred tax assets would expire, Griffin believes that it is more likely than not that it will utilize the benefit of its deferred tax assets.

Griffin evaluates each tax position taken in its tax returns and recognizes a liability for any tax position deemed less likely than not to be sustained under examination by the relevant taxing authorities. Griffin believes that its income tax filing positions will be sustained on examination and does not anticipate any adjustments that would result in a material change on its financial statements. As a result, no accrual for uncertain income tax positions has been recorded pursuant to ASC 740.

Federal income tax returns for fiscal 2014, fiscal 2013, and fiscal 2012 are subject to examination by the Internal Revenue Service. In fiscal 2014, the state of New York completed an examination of Griffin's fiscal 2007, fiscal 2008 and fiscal 2009 tax returns. There were no significant adjustments made as a result of this examination. The remaining periods subject to examination for Griffin's significant state return, which is Connecticut, are fiscal 2008 through fiscal 2014.