Income Taxes (Tables)

12 Months Ended

Nov. 30, 2019

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
2019
Current	$	(200	)	$	(3,700	)	$	(3,900	)
Deferred	(53,800		)	(21,700		)	(75,500		)
Income tax expense	$	(54,000	)	$	(25,400	)	$	(79,400	)



	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	)

Components of deferred tax liabilities and assets

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



	November 30,
	2019			2018
Deferred tax liabilities:
Capitalized expenses	$	43,818		$	51,660
State taxes	26,290			31,246
Other	4,132			225
Total	74,240			83,131

Deferred tax assets:
Tax credits	180,737			231,100
Net operating losses (“NOLs”) from 2006 through 2019	95,562			121,432
Employee benefits	53,294			45,802
Inventory impairment and land option contract abandonment charges	48,862			67,416
Warranty, legal and other accruals	40,954			43,213
Capitalized expenses	25,116			27,894
Partnerships and joint ventures	9,990			6,368
Depreciation and amortization	479			1,869
Other	2,939			3,457
Total	457,933			548,551
Valuation allowance	(19,200		)	(23,600		)
Total	438,733			524,951
Deferred tax assets, net	$	364,493		$	441,820

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,
	2019					2018					2017
	$			%		$			%		$			%
Income tax expense computed at statutory rate	$	(73,117	)	(21.0	)%	$	(81,689	)	(22.2	)%	$	(101,499	)	(35.0	)%
Tax credits	6,595			1.9		14,177			3.9		6,227			2.2
Valuation allowance for deferred tax assets	4,400			1.3		2,000			.5		1,200			.4
Depreciation and amortization	4,276			1.2		1,223			.3		362			.1
NOL reconciliation	3,111			.9		—			—		(2,210		)	(.8	)
State taxes, net of federal income tax benefit	(20,927		)	(6.0	)	(20,155		)	(5.5	)	(14,450		)	(4.9	)
Non-deductible compensation	(4,653		)	(1.3	)	—			—		—			—
TCJA adjustment	—			—		(112,458		)	(30.5	)	—			—
Other, net	915			.2		(698		)	(.2	)	970			.3
Income tax expense	$	(79,400	)	(22.8	)%	$	(197,600	)	(53.7	)%	$	(109,400	)	(37.7	)%

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,
	2019		2018			2017
Balance at beginning of year	$	—	$	56		$	56
Reductions due to lapse of statute of limitations	—		(56		)	—
Balance at end of year	$	—	$	—		$	56