4. Income Taxes

The income tax provision for fiscal 2019, fiscal 2018 and fiscal 2017 is summarized as follows:


	For the Fiscal Years Ended
	Nov. 30,		Nov. 30,		Nov. 30,
	2019		2018		2017
Current federal	$	—	$	25	$	(43)
Current state and local		(88)		(102)		(7)
Deferred federal		(511)		(678)		(2,610)
Deferred state and local		812		250		(13)
Total income tax benefit (provision)	$	213	$	(505)	$	(2,673)

The income tax provision for fiscal 2019 included a credit of $873 for the partial reduction of the valuation allowance on deferred tax assets related primarily to net operating loss carryforwards in Connecticut as a result of the change in Connecticut’s tax law whereby the capital based tax is being phased out over four consecutive years beginning January 1, 2021.

The income tax provision for fiscal 2018 included a charge of $1,001 for the re-measurement of Griffin’s deferred tax assets and deferred tax liabilities as a result of the reduction in the U.S. federal corporate statutory rate from 35% to 21%, under the TCJA, which was enacted on December 22, 2017 and became effective for Griffin in the 2018 first quarter. As Griffin had net deferred tax assets when the TCJA became effective for Griffin, the re-measurement of its deferred tax assets and deferred tax liabilities resulted in the charge that is included in fiscal 2018. Griffin’s statutory income tax rate in fiscal 2018 as a result of the TCJA was a blended rate of approximately 22%.

In fiscal 2018, prior to the effective date of the U.S. federal corporate statutory income tax rate reduction, Griffin recorded a deferred tax asset of $879 related to the cumulative effect of stock option exercises upon adoption of ASU No. 2016-09 (see Note 1). Griffin had not previously recognized a current tax benefit in fiscal 2017 from the exercise of employee stock options as it utilized net operating loss carryforwards to offset taxable income. In fiscal 2017, the deferred tax asset related to non‑qualified stock options was reduced by $17 as a result of exercises and forfeitures of those options.

The income tax provisions in fiscal 2019 and fiscal 2017 are net of the effect of recording a benefit related to valuation allowances on certain state deferred tax assets (principally Connecticut) of $921 and $238, respectively, less federal income tax expense of $193 and $87. The income tax provision in fiscal 2018 is net of the effect of recording a charge related to valuation allowances on certain state deferred tax assets (principally Connecticut) of $681 less a federal income tax benefit of $146. 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,
	2019		2018		2017
Fair value adjustment of Griffin's cash flow hedges	$	1,586	$	(797)	$	(463)
Mark to market adjustment on Centaur Media plc		—		—		23
Total income tax benefit (expense) included in other comprehensive (loss) income	$	1,586	$	(797)	$	(440)

The differences between the income tax provision at the U.S. statutory income tax rate and the actual income tax provision for fiscal 2019, fiscal 2018 and fiscal 2017 are as follows:


	For the Fiscal Years Ended
	Nov. 30,		Nov. 30,		Nov. 30,
	2019		2018		2017
Tax benefit (provision) at statutory rate	$	(726)	$	255	$	(2,555)
State and local taxes, including valuation allowance, net of federal tax effect		737		78		(18)
Permanent items		44		(24)		(41)
Federal rate change under TCJA		—		(1,001)		—
Other		158		187		(59)
Total income tax benefit (provision)	$	213	$	(505)	$	(2,673)

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


	Nov. 30,		Nov. 30,
	2019		2018
Deferred tax assets:
Federal net operating loss carryforwards	$	2,759	$	3,657
Deferred revenue		2,372		2,402
State net operating loss carryforwards		2,087		2,236
Retirement benefit plans		1,521		1,416
Cash flow hedges		938		—
Non-qualified stock options		424		480
Other		181		220
Total deferred tax assets		10,282		10,411
Valuation allowances		(1,462)		(2,190)
Net deferred tax assets		8,820		8,221
Deferred tax liabilities:
Real estate assets		(4,274)		(4,331)
Deferred rent		(956)		(1,018)
Cash flow hedges		—		(674)
Other		(309)		(642)
Total deferred tax liabilities		(5,539)		(6,665)
Net total deferred tax assets	$	3,281	$	1,556

At November 30, 2019, Griffin had federal net operating loss carryforwards of approximately $12,363 with expirations ranging from fifteen to nineteen years and state net operating loss carryforwards (net of valuation allowances) of approximately $11,217 with expirations ranging from eleven to nineteen years. Management has determined that a valuation allowance is required for net operating loss carryforwards in Connecticut related to Griffin and Imperial Nurseries, Inc. (“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 amount of appreciated assets, primarily real estate, held by Griffin and the significant length of time expected before Griffin’s net operating loss carryforwards 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.

Federal income tax returns for fiscal 2016, fiscal 2017 and fiscal 2018 are open to examination by the Internal Revenue Service (“IRS”).