FEDERAL AND STATE INCOME TAXES (Notes)

12 Months Ended

Nov. 30, 2013

Income Tax Disclosure [Abstract]

FEDERAL AND STATE INCOME TAXES

FEDERAL AND STATE INCOME TAXES

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

Significant components of the provision for income taxes for the years ended November 30, are as follows (in thousands):

	2011			2012			2013
Current tax expense (benefit):
Federal	$	7,941		$	18,466		$	(8,008	)
State	1,386			1,003			(220		)
Foreign	(22		)	—			—
Deferred tax expense:
Federal	32,815			8,608			33,235
State	2,873			3,881			2,777
Foreign	—			(305		)	—
Provision for income taxes	$	44,993		$	31,653		$	27,784

The reconciliation of income tax expense computed at the federal statutory tax rates to income tax expense from continuing operations for the years ended November 30, is as follows (percent of pre-tax income):

	2011		2012		2013
Income tax computed at federal statutory rates	35.0	%	35.0	%	35.0	%
State income taxes, net of federal tax benefit	3.9		4.5		4.2
Valuation Allowance	—		(2.7	)	—
State tax credits, net of federal tax benefit	(0.4	)	(0.6	)	—
Other, net	0.8		0.5		(1.2	)
	39.3	%	36.7	%	38.0	%

The components of the net deferred tax assets (liabilities) at November 30, are as follows (in thousands):

	2012			2013
Impaired long-lived assets	$	37,756		$	—
Unrecognized tax benefits	778			—
Amortization and depreciation	917			895
Loss carryforwards	6,236			9,919
Deferred revenues	2,110			3,684
Accruals	3,876			3,754
Compensation related	2,543			3,075
Deferred expenses	1,791			—
Interest	5,416			4,749
Equity investment	1,495			—
Other	6			6
Deferred tax assets	62,924			26,082
Valuation allowance	(1,361		)	(1,363		)
Deferred tax assets, net of valuation allowance	61,563			24,719
Amortization and depreciation	(387,549		)	(381,144		)
Equity investment	—			(6,620		)
Other	(208		)	(364		)
Deferred tax liabilities	(387,757		)	(388,128		)
Net deferred tax liabilities	$	(326,194	)	$	(363,409	)
Deferred tax assets — current	$	2,029		$	3,122
Deferred tax liabilities — noncurrent	(328,223		)	(366,531		)
Net deferred tax liabilities	$	(326,194	)	$	(363,409	)

The Company has recorded deferred tax assets related to various state loss carryforwards totaling approximately $9.9 million that expire in varying amounts beginning in fiscal 2019. The valuation allowance has been provided due to the uncertainty regarding the realization of state deferred tax assets associated with these loss carryforwards. In evaluating the Company’s ability to recover its deferred income tax assets it considers all available positive and negative evidence, including operating results, ongoing tax planning and forecasts of future taxable income on a jurisdiction by jurisdiction basis.

Federal returns for fiscal years 2010 through 2013 remain open and subject to examination by the Internal Revenue Service. The Company files and remits state income taxes in various states where the Company has determined it is required to file state income taxes. The Company’s filings with those states remain open for audit for the fiscal years 2009 through 2013.

A reconciliation of the beginning and ending amount of unrecognized tax liability is as follows (in thousands):

Balance at December 1, 2012	$	457
Additions based on tax positions related to the current year	14
Additions for tax positions of prior years	—
Reductions for tax positions of prior years	(41		)
Balance at November 30, 2013	$	430

The effective income tax rate for fiscal year ended November 30, 2011 approximated the statutory income tax rate. The reduction in the valuation allowance associated with the wind-up of certain Canadian business operations is the principal cause of the decreased effective income tax rate as compared to the statutory income tax rate, for the fiscal year ended November 30, 2012. Certain state settlements are the principal cause of the decreased effective income tax rate as compared to the statutory income tax rate, for the fiscal year ended November 30, 2013.

As a result of the above items, the Company’s effective income tax rate decreased from the statutory income rate to approximately 36.7 percent and 38.0 percent for the fiscal years ended November 30, 2012 and 2013, respectively.