Company: LEN
Filing Date: 2025-01-23
Form Type: 10-K
Source: 0001628280-25-002404
Chunk: 55

Company: LENNAR CORP /NEW/
Filing Date: 2025-01-23
Form: 10-K
Item: Item 8
Chunk 55
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’s experience with loss carryforwards not expiring unused and tax planning alternatives.At November 30,(In thousands)20242023Valuation 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.

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Table of ContentsLENNAR CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(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)202420232022Gross 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)20242023Accrued 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