Income Taxes (Tables)

12 Months Ended

Nov. 30, 2018

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

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



	Federal			State			Total
2018
Current	$	(3,600	)	$	(4,800	)	$	(8,400	)
Deferred	(170,700		)	(18,500		)	(189,200		)
Income tax expense	$	(174,300	)	$	(23,300	)	$	(197,600	)

2017
Current	$	(2,800	)	$	(3,000	)	$	(5,800	)
Deferred	(86,300		)	(17,300		)	(103,600		)
Income tax expense	$	(89,100	)	$	(20,300	)	$	(109,400	)

2016
Current	$	(1,900	)	$	(1,000	)	$	(2,900	)
Deferred	(28,700		)	(12,100		)	(40,800		)
Income tax expense	$	(30,600	)	$	(13,100	)	$	(43,700	)

Components of deferred tax liabilities and assets

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



	November 30,
	2018			2017
Deferred tax liabilities:
Capitalized expenses	$	51,660		$	98,147
State taxes	31,246			59,174
Other	225			313
Total	83,131			157,634

Deferred tax assets:
NOLs from 2006 through 2018	121,432			236,273
Tax credits	231,100			208,841
Inventory impairment and land option contract abandonment charges	67,416			139,737
Employee benefits	45,802			100,200
Warranty, legal and other accruals	43,213			60,238
Capitalized expenses	27,894			39,195
Partnerships and joint ventures	6,368			14,784
Depreciation and amortization	1,869			7,333
Other	3,457			8,270
Total	548,551			814,871
Valuation allowance	(23,600		)	(23,600		)
Total	524,951			791,271
Deferred tax assets, net	$	441,820		$	633,637

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



	Years Ended November 30,
	2018					2017					2016
	$			%		$			%		$			%
Income tax expense computed at statutory rate	$	(81,689	)	(22.2	)%	$	(101,499	)	(35.0	)%	$	(52,260	)	(35.0	)%
Tax credits	14,177			3.9		6,227			2.2		4,447			3.0
Valuation allowance for deferred tax assets	2,000			.5		1,200			.4		12,982			8.7
Depreciation and amortization	1,223			.3		362			.1		1,842			1.2
State taxes, net of federal income tax benefit	(20,155		)	(5.5	)	(14,450		)	(4.9	)	(7,511		)	(5.0	)
TCJA adjustment	(112,458		)	(30.5	)	—			—		—			—
NOL reconciliation	—			—		(2,210		)	(.8	)	(3,691		)	(2.5	)
Other, net	(698		)	(.2	)	970			.3		491			.3
Income tax expense	$	(197,600	)	(53.7	)%	$	(109,400	)	(37.7	)%	$	(43,700	)	(29.3	)%

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,
	2018			2017		2016
Balance at beginning of year	$	56		$	56	$	56
Reductions due to lapse of statute of limitations	(56		)	—		—
Balance at end of year	$	—		$	56	$	56