Income Taxes

6 Months Ended

May 31, 2019

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



	Three Months Ended					Six Months Ended
	May 31,					May 31,
(Dollars in thousands)	2019			2018		2019		2018
Provision for income taxes		$140,530		75,961		220,230		208,572
Effective tax rate (1)	25.0		%	19.7	%	25.0	%	31.8	%

(1)

For the three and six months ended May 31, 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 May 31, 2018, the effective tax rate included tax benefits for the domestic production activities deduction and energy tax credits, offset primarily by state income tax expenses. For the six months ended May 31, 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, offset primarily by tax benefits for the domestic production activities deduction and energy tax credits. Excluding the impact of the write down of the deferred tax assets, the effective tax rate for the six months ended May 31, 2018 was 21.4%.

As of May 31, 2019 and November 30, 2018, the Company's deferred tax assets, net, included in the condensed consolidated balance sheets were $413.5 million and $515.5 million, respectively.

As of both May 31, 2019 and November 30, 2018, the Company had $14.7 million of gross unrecognized tax benefits.

At May 31, 2019, the Company had $54.2 million accrued for interest and penalties, which increased $1.3 million during the six months ended May 31, 2019. At November 30, 2018, the Company had $52.9 million accrued for interest and penalties.