4. Income Taxes

The income tax provision in continuing operations for fiscal 2016, fiscal 2015 and fiscal 2014 is summarized as follows:


	For the Fiscal Years Ended
	Nov. 30,		Nov. 30,		Nov. 30,
	2016		2015		2014
Current federal	$	50	$	(83)	$	—
Current state and local		—		—		—
Deferred federal		(580)		(217)		356
Deferred state and local		(205)		(80)		(452)
Total income tax provision	$	(735)	$	(380)	$	(96)

The income tax provision for fiscal 2016 includes a charge of approximately $180 for the effect of a change in Connecticut tax law, effective for Griffin in fiscal 2016, whereby, the usage of state net operating loss carryforwards in future years will be limited to 50% of taxable income. Therefore, in fiscal 2016, Griffin decreased its expected realization of the tax benefit related to its Connecticut state net operating loss carryforwards. The decrease of the realization rate is based on management's current projections of taxable income in Connecticut in future years that would generate income taxes in excess of capital based taxes.

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 other Connecticut state temporary differences. These decreases were based on management's projections in those years 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 2016, fiscal 2015 or fiscal 2014 from the exercise of employee stock options. A benefit was not recorded in fiscal 2016 and fiscal 2014 because Griffin did not have taxable income. In fiscal 2015, Griffin utilized net operating loss carryforwards to offset taxable income. As of November 30, 2016, 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 2016, fiscal 2015 and fiscal 2014, the deferred tax asset related to non‑qualified stock options was reduced by $17, $9 and $4, respectively, as a result of exercises and forfeitures of those options.

Included in total income from discontinued operations, net of tax, is an income tax provision of $115 for fiscal 2014.

The income tax provision in fiscal 2016 is net of the effect of recording a charge related to valuation allowances on certain state deferred tax assets (principally Connecticut) of $1,798, less a federal income tax benefit of $629. The income tax provision in fiscal 2015 was 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 for discontinued operations in fiscal 2014 was 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 was a charge of $24, less a federal income tax benefit of $8. 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,		Nov. 30,		Nov. 30,
	2016		2015		2014
Mark to market adjustment on Centaur Media plc	$	347	$	(16)	$	17
Measurement of the funded status of the defined postretirement program		—		—		181
Fair value adjustment of Griffin's cash flow hedges		(399)		164		37
Total income tax (expense) benefit included in other comprehensive income (loss)	$	(52)	$	148	$	235

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 2016, fiscal 2015 and fiscal 2014 are as follows:


	For the Fiscal Years Ended
	Nov. 30,		Nov. 30,		Nov. 30,
	2016		2015		2014
Tax (provision) benefit at statutory rate	$	(459)	$	(282)	$	403
State and local taxes, including valuation allowance, net of federal tax effect		(205)		(80)		(457)
Permanent items		(35)		(23)		(43)
Other		(36)		5		1
Total income tax provision	$	(735)	$	(380)	$	(96)

The state and local income tax expense, net of federal tax effect, principally reflects a decrease in the realization of the tax benefit related to Connecticut state net operating loss carryforwards and expected Connecticut state other temporary differences for fiscal 2016, fiscal 2015 and fiscal 2014.

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


	Nov. 30,		Nov. 30,
	2016		2015
Deferred tax assets:
Federal net operating loss carryforwards	$	4,037	$	2,673
Deferred revenue		3,068		3,587
Retirement benefit plans		1,675		1,547
State net operating loss carryforwards		1,537		554
Non-qualified stock options		892		847
Cash flow hedges		623		1,022
Investment in Centaur Media plc		309		(38)
Charitable contribution carryforwards		127		179
Conditional asset retirement obligations		112		112
Other		46		51
Total deferred tax assets		12,426		10,534
Valuation allowances		(1,514)		(345)
Net deferred tax assets		10,912		10,189
Deferred tax liabilities:
Real estate assets		(4,244)		(2,666)
Deferred rent		(1,095)		(985)
Prepaid insurance		(107)		(113)
Property and equipment		(49)		(44)
Other		(433)		(543)
Total deferred tax liabilities		(5,928)		(4,351)
Net total deferred tax assets	$	4,984	$	5,838

At November 30, 2016, Griffin had federal net operating loss carryforwards of approximately $11,535 with expirations ranging from fourteen to twenty years and state net operating loss carryforwards of approximately $358 with expirations ranging from ten to twenty years. Management has determined that a valuation allowance is required for net operating loss carryforwards in Connecticut related to Griffin and Imperial and for certain other states related to Imperial. Griffin has evaluated the likelihood that it will realize the benefits of its deferred tax assets. Based on a significant number 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 remaining 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 740‑10.

Federal income tax returns for fiscal 2012 through fiscal 2015 are open 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 2015.