Income Taxes (Tables)

12 Months Ended

Nov. 30, 2015

Component of income tax benefit (expense) in the consolidated statement of operations

The components of the income tax benefit (expense) in our consolidated statements of operations are as follows (in thousands):



	Federal			State			Total
2015
Current	$	(1,400	)	$	(2,000	)	$	(3,400	)
Deferred	(35,900		)	(3,100		)	(39,000		)
Income tax expense	$	(37,300	)	$	(5,100	)	$	(42,400	)
2014
Current	$	100		$	(1,900	)	$	(1,800	)
Deferred	646,000			179,200			825,200
Income tax benefit	$	646,100		$	177,300		$	823,400
2013
Current	$	—		$	1,600		$	1,600
Deferred	—			—			—
Income tax benefit	$	—		$	1,600		$	1,600

Components of deferred tax liabilities and assets

Significant components of our deferred tax liabilities and assets are as follows (in thousands):



	November 30,
	2015			2014
Deferred tax liabilities:
Capitalized expenses	$	110,408		$	103,196
State taxes	68,866			72,258
Other	196			310
Total	179,470			175,764

Deferred tax assets:
NOLs from 2006 through 2015	423,274			459,393
Tax credits	186,169			176,234
Inventory impairments and land option contract abandonments	179,828			229,264
Employee benefits	93,395			82,776
Warranty, legal and other accruals	49,655			42,621
Capitalized expenses	34,887			24,155
Partnerships and joint ventures	18,557			15,672
Depreciation and amortization	9,146			9,022
Other	4,537			3,009
Total	999,448			1,042,146
Valuation allowance	(37,782		)	(41,150		)
Total	961,666			1,000,996
Deferred tax assets, net	$	782,196		$	825,232

Income tax benefit computed at the statutory U.S. federal income tax rate and income tax benefit (expense) provided in the consolidated statements of operations

The income tax benefit (expense) computed at the statutory U.S. federal income tax rate and the income tax benefit (expense) provided in our consolidated statements of operations differ as follows (dollars in thousands):



	Years Ended November 30,
	2015					2014					2013
	$			%		$			%		$			%
Income tax expense computed at statutory rate	$	(44,462	)	(35.0	)%	$	(33,232	)	(35.0	)%	$	(13,427	)	(35.0	)%
Tax credits	8,220			6.5		2,884			3.0		2,675			7.0
Valuation allowance for deferred tax assets	3,356			2.6		825,232			869.1		20,673			53.9
Depreciation and amortization	3,183			2.5		15,765			16.6		4,523			11.8
Basis in joint ventures	1,617			1.3		10,441			11.0		(9,598		)	(25.0	)
Inventory impairments	(1,701		)	(1.3	)	—			—		2,827			7.4
Reserve and deferred income	(2,259		)	(1.8	)	—			—		(1,808		)	(4.7	)
NOL reconciliation	(3,379		)	(2.7	)	12,973			13.7		(3,806		)	(9.9	)
State taxes, net of federal income tax benefit	(5,155		)	(4.1	)	(13,907		)	(14.7	)	(1,947		)	(5.1	)
Capitalized expenses	—			—		1,249			1.3		—			—
Recognition of federal and state tax benefits	—			—		59			.1		1,600			4.2
Other, net	(1,820		)	(1.4	)	1,936			2.1		(112		)	(.3	)
Income tax benefit (expense)	$	(42,400	)	(33.4	)%	$	823,400		867.2	%	$	1,600		4.3	%

Reconciliation of the beginning and ending balances of the gross unrecognized benefits

A reconciliation of the beginning and ending balances of gross unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands):



	Years Ended November 30,
	2015			2014		2013
Balance at beginning of year	$	206		$	206	$	1,671
Reductions due to lapse of statute of limitations	(150		)	—		(1,465		)
Balance at end of year	$	56		$	206	$	206