FEDERAL AND STATE INCOME TAXES (Tables)

12 Months Ended

Nov. 30, 2013

Significant Components of the Provision for Income Taxes from Continuing Operations

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

Reconciliation of Federal Statutory Tax Rates to Income Tax Expense from Continuing Operations

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	%

Components of Net Deferred Tax Assets (Liabilities)

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	)

Reconciliation of Unrecognized Tax Liability

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

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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