Income Taxes (Tables)

12 Months Ended

Nov. 30, 2013

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
2013
Current	$	—	$	1,600		$	1,600
Deferred	—		—			—
Income tax benefit	$	—	$	1,600		$	1,600
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

Components of deferred tax liabilities and assets

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



	November 30,
	2013			2012
Deferred tax liabilities:
Capitalized expenses	$	87,599		$	76,112
State taxes	62,884			64,577
Depreciation and amortization	300			—
Other	208			218
Total	$	150,991		$	140,907
Deferred tax assets:
Inventory impairments and land option contract abandonments	$	110,745		$	132,099
NOL from 2006 through 2013	459,885			442,621
Warranty, legal and other accruals	50,110			54,744
Employee benefits	73,039			68,644
Partnerships and joint ventures	122,081			132,851
Depreciation and amortization	—			7,467
Capitalized expenses	9,359			6,646
Tax credits	173,289			169,173
Deferred income	656			668
Other	11,267			6,107
Total	1,010,431			1,021,020
Valuation allowance	(859,440		)	(880,113		)
Total	150,991			140,907
Net deferred tax assets	$	—		$	—

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 provided in the consolidated statements of operations differ as follows (in thousands):



	Years Ended November 30,
	2013			2012			2011
Income tax benefit (expense) computed at statutory rate	$	(13,427	)	$	27,672		$	63,397
State taxes, net of federal income tax benefit	(1,947		)	9,948			4,691
Reserve and deferred income	(1,808		)	(9,146		)	(1,161		)
Capitalized expenses	—			7,960			(3,501		)
Basis in joint ventures	(9,598		)	42,503			4,401
NOL reconciliation	(3,806		)	(5,345		)	715
Inventory impairments	2,827			(59,401		)	(1,852		)
Recognition of federal and state tax benefits	1,600			17,650			2,600
Tax credits	2,675			17,889			5,477
Valuation allowance for deferred tax assets	20,673			(32,286		)	(76,747		)
Depreciation and amortization	4,523			2,482			—
Other, net	(112		)	174			4,380
Income tax benefit	$	1,600		$	20,100		$	2,400

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,
	2013			2012			2011
Balance at beginning of year	$	1,671		$	1,899		$	11,308
Additions for tax positions related to prior years	—			—			5
Reductions for tax positions related to prior years	—			(165		)	—
Reductions due to lapse of statute of limitations	(1,465		)	(63		)	(2,476		)
Reductions due to resolution of federal and state audits	—			—			(6,938		)
Balance at end of year	$	206		$	1,671		$	1,899