Income Taxes

3 Months Ended

Feb. 28, 2019

The provision for income taxes and effective tax rate were as follows:



	Three Months Ended
	February 28,
(Dollars in thousands)	2019			2018
Provision for income taxes		$79,700		132,611
Effective tax rate (1)	24.9		%	49.3	%

(1)

For the three months ended February 28, 2019, the effective tax rate included state income tax expense and non-deductible executive compensation, partially offset by solar tax credits. For the three months ended February 28, 2018, the effective tax rate included a $68.6 million non-cash one-time write down of the deferred tax assets due to the enactment of the Tax Cuts and Jobs Act and state income tax expense, offset primarily by tax benefits for the domestic production activities deduction and solar tax credits. Excluding the impact of the write down of the deferred tax assets, the effective tax rate for the three months ended February 28, 2018 was 23.8%.

As of February 28, 2019 and November 30, 2018, the Company's deferred tax assets, net, included in the condensed consolidated balance sheets were $449.2 million and $515.5 million, respectively.

As of both February 28, 2019 and November 30, 2018, the Company had $14.7 million of gross unrecognized tax benefits.

At February 28, 2019, the Company had $53.6 million accrued for interest and penalties, of which $0.7 million was accrued during the three months ended February 28, 2019. At November 30, 2018, the Company had $52.9 million accrued for interest and penalties.