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Income Taxes
 12 Months Ended
Nov. 30, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The provision for income taxes consisted of the following:
Years Ended November 30,
(In thousands)202420232022
Current:
Federal$863,867 1,037,229 1,282,037 
State292,960 271,752 330,681 
$1,156,827 1,308,981 1,612,718 
Deferred:
Federal$48,080 (53,474)(193,667)
State12,346 (14,494)(52,986)
60,426 (67,968)(246,653)
$1,217,253 1,241,013 1,366,065 
A reconciliation of the statutory rate and the effective tax rate was as follows:
Percentage of Pretax Income
202420232022
Statutory rate21.00 %21.00 %21.00 %
State income taxes, net of federal income tax benefit4.74 4.09 4.52 
Tax credits (1)(1.85)(1.48)(2.16)
Tax reserves and interest expense, net (2)(0.01)— (0.83)
Deferred tax asset valuation allowance, net— (0.01)— 
Other(0.24)0.36 0.31 
Effective rate23.64 %23.96 %22.84 %
(1)During 2022, Congress enacted the Inflation Reduction Act which included a retroactive extension of the new energy efficient
home tax credit through 2032.
(2)Includes a $50.2 million benefit related to the resolution of an uncertain tax position during 2022.
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of significant temporary differences that give rise to the net deferred tax assets were as follows:
At November 30,
(In thousands)20242023
Deferred tax assets:
Inventory valuation adjustments$22,979 39,641 
Reserves and accruals198,753 193,156 
Net operating loss carryforwards43,894 52,591 
Capitalized expenses244,198 208,392 
Investments in unconsolidated entities62,395 65,254 
Employee stock incentive plan49,655 40,270 
Unrealized losses on investments in equity securities— 53,684 
Other assets39,011 51,785 
Total deferred tax assets660,885 704,773 
Valuation allowance(2,593)(2,333)
Total deferred tax assets after valuation allowance658,292 702,440 
Deferred tax liabilities:
Capitalized expenses170,557 151,912 
Deferred income181,145 168,316 
Unrealized gains on investments in equity securities5,358 — 
Other liabilities28,855 55,734 
Total deferred tax liabilities385,915 375,962 
Net deferred tax assets$272,377 326,478 
The detail of the Company's net deferred tax assets (liabilities) was as follows:
At November 30,
(In thousands)20242023
Net deferred tax assets:
Homebuilding$146,299 163,917 
Financial Services40,738 36,821 
Multifamily72,049 54,786 
Lennar Other13,291 70,954 
Net deferred tax assets$272,377 326,478 

A reduction of the carrying amounts of deferred tax assets by a valuation allowance is required if, based on the available evidence, it is more likely than not that such assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed each reporting period by the Company based on the consideration of all available positive and negative evidence using a "more-likely-than-not" standard with respect to whether deferred tax assets will be realized. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, actual earnings, forecasts of future profitability, the duration of statutory carryforward periods, the Company’s experience with loss carryforwards not expiring unused and tax planning alternatives.
At November 30,
(In thousands)20242023
Valuation allowance (1)$(2,593)(2,333)
Federal tax effected NOL carryforwards (2)23,079 26,375 
State tax effected NOL carryforwards (3)20,815 26,216 
(1)As of November 30, 2024 and 2023, the deferred tax assets included valuation allowances primarily related to state net operating loss ("NOL") carryforwards that are not more likely than not to be utilized due to an inability to carry back these losses in most states and short carryforward periods that exist in certain states.
(2)As of November 30, 2024 and 2023, the Company had federal tax effected NOL carryforwards that may be carried forward to offset future taxable income and begin to expire in 2029.
(3)As of November 30, 2024 and 2023, the Company had state tax effected NOL carryforwards that may be carried forward from 10 to 20 years or indefinitely, depending on the tax jurisdiction, with certain losses expiring between 2025 and 2041.
The following table summarizes the changes in gross unrecognized tax benefits:
Years Ended November 30,
(In thousands)202420232022
Gross unrecognized tax benefits, beginning of year$— — 12,285 
Decreases due to settlements with tax authorities— — (12,285)
Gross unrecognized tax benefits, end of year$— — — 
The following summarizes the changes in interest and penalties accrued with respect to gross unrecognized tax benefits:
November 30,
(In thousands)20242023
Accrued interest and penalties, beginning of the year$— — 
Accrual of interest and penalties— 95 
Interest income from audits and refund claims(434)— 
Increase (reduction) of interest and penalties434 (95)
Accrued interest and penalties, end of the year$— — 
The Company participates in an IRS examination program, the Compliance Assurance Process ("CAP"). This program operates as a contemporaneous exam throughout the year in order to keep exam cycles current and achieve a higher level of compliance. Certain state taxing authorities are examining various fiscal years. The final outcome of these examinations is not yet determinable. The statute of limitations for the Company's major tax jurisdictions remains open for examination for 2019 and subsequent years.