Company: LEN
Filing Date: 2025-01-23
Form Type: 10-K
Source: 0001628280-25-002404
Chunk: 54

Company: LENNAR CORP /NEW/
Filing Date: 2025-01-23
Form: 10-K
Item: Item 8
Chunk 54
---
 STATEMENTS—(Continued)

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)20242023Deferred 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)20242023Net 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