7. Income Taxes

The income tax provision in continuing operations for fiscal 2014, fiscal 2013 and fiscal 2012 is summarized as follows:

	For the Fiscal Years Ended,
	Nov. 30, 2014			Nov. 30, 2013			Dec. 1, 2012
Current federal	$	—		$	—		$	—
Current state and local		—			—			—
Deferred federal		356			(1,076	)		(172	)
Deferred state and local		(452	)		84			(98	)

Total income tax provision	$	(96	)	$	(992	)	$	(270	)

In fiscal 2014, Griffin decreased its expected realization of the tax benefit related to its Connecticut state net operating loss carryforwards and Connecticut state other temporary differences. This decrease is based on management's current projections of taxable income in the state of Connecticut in future years that would generate income taxes in excess of capital based taxes. A charge of approximately $375 is reflected in the fiscal 2014 tax provision for state taxes to reflect the expected lower realization of certain state tax benefits.

Griffin did not recognize a current tax benefit in fiscal 2014, fiscal 2013 or fiscal 2012 from the exercise of employee stock options. A benefit was not recorded in fiscal 2014 and 2013 because Griffin did not have taxable income. In fiscal 2012, Griffin utilized net operating loss carryforwards to offset taxable income. As of November 30, 2014, Griffin has an unrecognized tax benefit of $1,170 for the effect of employee stock options exercised in fiscal years 2006 through 2014. In fiscal 2014 and fiscal 2012, the deferred tax asset related to non-qualified stock options was reduced by $4 and $38, respectively, as a result of exercises and forfeitures of those options. There were no adjustments to deferred tax assets for exercises and forfeitures of non-qualified stock options in fiscal 2013.

Included in total income (loss) from Griffin's discontinued operations, net of tax, is an income tax provision of $115 and $1,077 for fiscal 2014 and fiscal 2012, respectively, and an income tax benefit of $4,411 for fiscal 2013.

The income tax (provision) benefit for discontinued operations in fiscal 2014, fiscal 2013 and fiscal 2012 is 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, fiscal 2013 and fiscal 2012 were charges of $24, $93 and $44, respectively, less federal income tax benefits of $8, $33 and $15, respectively. 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 (loss) income includes deferred tax benefit (expense) as follows:

	For the Fiscal Years Ended,
	Nov. 30, 2014		Nov. 30, 2013			Dec. 1, 2012
Mark to market adjustment on Centaur Media plc	$	17	$	213		$	(427	)
Measurement of the funded status of the defined postretirement plan		181		(40	)		29
Fair value adjustment of Griffin's cash flow hedges		37		(359	)		287

Total income tax benefit (expense) included in other comprehensive (loss) income	$	235	$	(186	)	$	(111	)

The differences between the income tax benefit (provision) at the United States statutory income tax rates and the actual income tax benefit (provision) on continuing operations for fiscal 2014, fiscal 2013 and fiscal 2012 are as follows:

	For the Fiscal Years Ended,
	Nov. 30, 2014			Nov. 30, 2013			Dec. 1, 2012
Tax benefit (provision) at statutory rate	$	403		$	(1,016	)	$	(163	)
State and local taxes, including valuation allowance, net of federal tax effect		(457	)		55			(64	)
Permanent items		(43	)		(39	)		(50	)
Other		1			8			7

Total income tax provision	$	(96	)	$	(992	)	$	(270	)

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

	Nov. 30, 2014			Nov. 30, 2013
Deferred tax assets:
Federal net operating loss carryforwards	$	3,417		$	1,507
Deferred revenue		2,836			485
Retirement benefit plans		1,496			1,500
Cash flow hedges		859			821
Non-qualified stock options		794			733
State net operating loss carryforwards		670			937
Charitable contributions		239			243
Conditional asset retirement obligations		112			114
Inventories		—			4,397
Allowance for doubtful accounts receivable		—			52
Other		40			372

Total deferred tax assets		10,463			11,161
Valuation allowances		(395	)		(379	)

Net deferred tax assets		10,068			10,782

Deferred tax liabilities:
Real estate assets		(2,547	)		(3,272	)
Deferred rent		(882	)		(926	)
Prepaid insurance		(142	)		(180	)
Property and equipment		(39	)		(104	)
Investment in Centaur Media plc		(22	)		45
Other		(440	)		(370	)

Total deferred tax liabilities		(4,072	)		(4,807	)

Net total deferred tax assets	$	5,996		$	5,975

At November 30, 2014, Griffin had federal net operating loss carryforwards of approximately $9,019 with expirations ranging from sixteen to twenty years and state net operating loss carryforwards of approximately $20,437, principally in Connecticut, with expirations ranging from eight to twenty years. Management has determined that a valuation allowance is required for net operating loss carryforwards in certain states (other than Connecticut) related to Imperial. Realization of the tax benefits related to the Connecticut state net operating loss carryforwards, which are not subject to valuation allowances, and the state effective tax rates at which those benefits will be realized is dependent upon future results of operations. Differences between forecasted and actual future operating results could adversely impact Griffin's ability to realize tax benefits from Connecticut state net operating losses. Therefore, the deferred tax assets relating to Connecticut state net operating loss carryforwards could be reduced in the future if estimates of future taxable income are reduced. 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 deferred tax assets would expire, Griffin believes that it is more likely than not that it will utilize the benefit of its 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 2013, fiscal 2012 and fiscal 2011 are subject 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. In fiscal 2012, the state of Connecticut completed an examination of Griffin's fiscal 2007 tax return. There were no significant adjustments made as a result of those examinations. The remaining periods subject to examination for Griffin's significant state return, which is Connecticut, are fiscal 2008 through fiscal 2013.