Income Taxes (Tables)

12 Months Ended

Nov. 30, 2012

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

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



	Federal		State			Total
2012
Current	$	16,500	$	3,600		$	20,100
Deferred	—		—			—
Income tax benefit	$	16,500	$	3,600		$	20,100
2011
Current	$	2,600	$	(200	)	$	2,400
Deferred	—		—			—
Income tax benefit (expense)	$	2,600	$	(200	)	$	2,400
2010
Current	$	6,500	$	500		$	7,000
Deferred	—		—			—
Income tax benefit	$	6,500	$	500		$	7,000

Components of deferred tax liabilities and assets

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



	November 30,
	2012			2011
Deferred tax liabilities:
Capitalized expenses	$	76,112		$	98,677
State taxes	64,577			61,550
Other	218			190
Total	$	140,907		$	160,417
Deferred tax assets:
Inventory impairments and land option contract abandonments	$	132,099		$	219,457
NOL from 2006 through 2012	442,621			412,901
Warranty, legal and other accruals	54,744			61,189
Employee benefits	68,644			57,699
Partnerships and joint ventures	132,851			83,693
Depreciation and amortization	7,467			13,577
Capitalized expenses	6,646			6,233
Tax credits	169,173			151,300
Deferred income	668			830
Other	6,107			2,517
Total	1,021,020			1,009,396
Valuation allowance	(880,113		)	(847,827		)
Total	140,907			161,569
Net deferred tax assets	$	—		$	1,152

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



	Years Ended November 30,
	2012			2011			2010
Income tax benefit computed at statutory rate	$	27,672		$	63,397		$	26,729
Increase (decrease) resulting from:
State taxes, net of federal income tax benefit	9,948			4,691			4,010
Reserve and deferred income	(9,146		)	(1,161		)	1,204
Capitalized expenses	7,960			(3,501		)	(88		)
Basis in joint ventures	42,503			4,401			13,729
NOL reconciliation	(5,345		)	715			(24,749		)
Inventory impairments	(59,401		)	(1,852		)	(2,736		)
Recognition of federal tax benefits	17,650			2,600			1,621
Tax credits	17,889			5,477			5,384
Valuation allowance for deferred tax assets	(32,286		)	(76,747		)	(21,115		)
Other, net	2,656			4,380			3,011
Income tax benefit	$	20,100		$	2,400		$	7,000

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

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



	Years Ended November 30,
	2012			2011			2010
Balance at beginning of year	$	1,899		$	11,308		$	11,024
Additions for tax positions related to prior years	—			5			1,720
Reductions for tax positions related to prior years	(165		)	—			(1,183		)
Reductions related to settlement	—			(264		)	—
Reductions due to lapse of statute of limitations	(63		)	(2,476		)	—
Reductions due to resolution of federal and state audits	—			(6,674		)	(253		)
Balance at end of year	$	1,671		$	1,899		$	11,308