Income Taxes

The components of income from continuing operations before income taxes are as follows (in thousands):



	Fiscal Year Ended
	November 30, 2015			November 30, 2014		November 30, 2013
U.S.	$	62,813		$	68,882	$	54,495
Foreign	(50,459		)	8,922		8,288
Total	$	12,354		$	77,804	$	62,783

The provision for income taxes from continuing operations is comprised of the following (in thousands):



	Fiscal Year Ended
	November 30, 2015			November 30, 2014			November 30, 2013
Current:
Federal	$	18,418		$	7,796		$	7,639
State	1,526			765			1,583
Foreign	3,056			4,751			2,165
Total current	23,000			13,312			11,387
Deferred:
Federal	2,199			14,783			9,622
State	60			730			329
Foreign	(4,104		)	(479		)	1,668
Total deferred	(1,845		)	15,034			11,619
Total	$	21,155		$	28,346		$	23,006

A reconciliation of the U.S. Federal statutory rate to the effective tax rate from continuing operations is as follows (in thousands):



	Fiscal Year Ended
	November 30, 2015			November 30, 2014			November 30, 2013
Tax at U.S. Federal statutory rate	$	4,324		$	27,231		$	21,972
Foreign rate differences	16,945			1,320			932
Effects of foreign operations included in U.S. Federal provision	(996		)	(1,821		)	(427		)
State income taxes, net	1,029			1,227			1,357
Research credits	(681		)	(80		)	(950		)
Domestic production activities deduction	(1,750		)	(1,095		)	(1,323		)
Tax-exempt interest	(51		)	(80		)	(129		)
Nondeductible stock-based compensation	1,875			2,152			1,464
Meals and entertainment	321			220			201
Compensation subject to 162(m)	228			350			—
Uncertain tax positions and tax settlements	(332		)	(123		)	633
Other	243			(955		)	(724		)
Total	$	21,155		$	28,346		$	23,006

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



	November 30, 2015			November 30, 2014
Deferred tax assets:
Accounts receivable	$	628		$	632
Other assets	761			762
Accrued compensation	3,421			2,666
Accrued liabilities and other	4,945			7,096
Stock-based compensation	4,902			4,558
Deferred revenue	798			—
Tax credit and loss carryforwards	29,351			30,769
Gross deferred tax assets	44,806			46,483
Valuation allowance	(8,160		)	(9,687		)
Total deferred tax assets	36,646			36,796
Deferred tax liabilities:
Goodwill	(21,580		)	(19,777		)
Deferred revenue	—			(672		)
Depreciation and amortization	(11,207		)	(4,327		)
Total deferred tax liabilities	(32,787		)	(24,776		)
Total	$	3,859		$	12,020

The valuation allowance primarily applies to net operating loss carryforwards and unutilized tax credits in jurisdictions or under conditions where realization is not more likely than not. The $1.5 million, $3.3 million, and $1.4 million decreases in the valuation allowance during fiscal years 2015, 2014, and 2013, respectively, primarily relate to foreign net operating loss carryforwards expiring unutilized.

At November 30, 2015, we have net operating loss carryforwards of $86.5 million expiring on various dates through 2034 and $1.1 million that may be carried forward indefinitely. At November 30, 2015, we have tax credit carryforwards of approximately $8.4 million expiring on various dates through 2030 and $2.1 million that may be carried forward indefinitely.

It is our intention to indefinitely reinvest the earnings of our non-U.S. subsidiaries. We have not provided for U.S. income taxes on the undistributed earnings of non-U.S. subsidiaries, which totaled $18.4 million as of November 30, 2015, as these earnings have been indefinitely reinvested. Any additional taxes that might be payable upon repatriation of our foreign earnings would not be significant.

We have filed our tax returns in accordance with the tax laws in each jurisdiction and recognize tax benefits for uncertain tax positions when the position would more likely than not be sustained based on its technical merits and recognize measurement adjustments when needed.

As of November 30, 2015, the total amount of unrecognized tax benefits was $4.8 million, of which $2.6 million was recorded in other noncurrent liabilities on the consolidated balance sheet and $2.2 million of deferred tax assets, principally related to U.S and foreign net operating loss carry-forwards, have not been recorded.

A reconciliation of the balance of our unrecognized tax benefits is as follows (in thousands):



	Fiscal Year Ended
	November 30, 2015			November 30, 2014			November 30, 2013
Balance, beginning of year	$	1,711		$	1,022		$	2,192
Tax positions related to current year	107			849			189
Settlements with tax authorities	(39		)	—			(1,176		)
Tax positions acquired	4,464			—			—
Lapses due to expiration of the statute of limitations	(1,464		)	(160		)	(183		)
Balance, end of year	$	4,779		$	1,711		$	1,022

If recognized, all amounts of unrecognized tax benefits would affect the effective tax rate.

We recognize interest and penalties related to uncertain tax positions as a component of our provision for income taxes. In fiscal years 2015, 2014, and 2013 there was a minimal amount of estimated interest and penalties recorded in the provision for income taxes. We have accrued $0.4 million and $0.2 million of estimated interest and penalties at November 30, 2015 and 2014, respectively. We do not expect any significant changes to the amount of unrecognized tax benefits in the next twelve months.

The Internal Revenue Service is currently examining our U.S. Federal income tax return for fiscal year 2013. Our Federal income tax returns have been examined or are closed by statute for all years prior to fiscal year 2012, and we are no longer subject to audit for those periods. Our state income tax returns have been examined or are closed by statute for all years prior to fiscal year 2011, and we are no longer subject to audit for those periods.

Tax authorities for certain non-U.S. jurisdictions are also examining returns, none of which are material to our consolidated balance sheets, cash flows or statements of income. With some exceptions, we are generally no longer subject to tax examinations in non-U.S. jurisdictions for years prior to fiscal year 2010.