Income Taxes (Tables)
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12 Months Ended |
Nov. 30, 2016 |
Income Tax Disclosure [Abstract] |
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Schedule of Benefit (Provision) for Income Taxes |
The benefit (provision) for income taxes consisted of the following: | | | | | | | | | | | | Years Ended November 30, | (In thousands) | 2016 | | 2015 | | 2014 | Current: | | | | | | Federal | $ | (300,116 | ) | | (343,635 | ) | | (261,306 | ) | State | (19,777 | ) | | (52,420 | ) | | 3,340 |
| | $ | (319,893 | ) | | (396,055 | ) | | (257,966 | ) | Deferred: | | | | | | Federal | $ | (43,775 | ) | | 12,872 |
| | (42,847 | ) | State | (53,710 | ) | | (7,233 | ) | | (40,278 | ) | | (97,485 | ) | | 5,639 |
| | (83,125 | ) | | $ | (417,378 | ) | | (390,416 | ) | | (341,091 | ) |
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Reconciliation Of Statutory Rate And Effective Tax Rate |
A reconciliation of the statutory rate and the effective tax rate was as follows: | | | | | | | | | | | Percentage of Pretax Income | | 2016 | | 2015 | | 2014 | Statutory rate | 35.00 | % | | 35.00 | % | | 35.00 | % | State income taxes, net of federal income tax benefit | 3.21 |
| | 3.22 |
| | 3.17 |
| Domestic production activities deduction | (2.78 | ) | | (3.01 | ) | | (2.81 | ) | Tax reserves and interest expense | (0.89 | ) | | 2.64 |
| | 0.59 |
| Deferred tax asset valuation reversal | (0.01 | ) | | (0.09 | ) | | (0.28 | ) | State net operating loss adjustment (1) | — |
| | (3.00 | ) | | — |
| Tax credits | (3.46 | ) | | (1.92 | ) | | (0.41 | ) | Other | 0.33 |
| | (0.12 | ) | | (0.46 | ) | Effective rate | 31.40 | % | | 32.72 | % | | 34.80 | % |
(1) During the year ended November 30, 2015, the Company recorded a benefit for additional state net operating loss carryforwards as a result of the conclusion of a state tax examination.
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Schedule of Deferred Income Taxes Assets And Liabilities |
The tax effects of significant temporary differences that give rise to the net deferred tax assets were as follows: | | | | | | | | | November 30, | (In thousands) | 2016 | | 2015 | Deferred tax assets: | | | | Inventory valuation adjustments | $ | 56,733 |
| | 58,902 |
| Reserves and accruals | 198,270 |
| | 197,980 |
| Net operating loss carryforwards | 92,362 |
| | 122,573 |
| Rialto investments in partnerships | 11,352 |
| | — |
| Capitalized expenses | 106,270 |
| | 91,873 |
| Investments in unconsolidated entities | 42,796 |
| | 10,407 |
| Other assets | 57,890 |
| | 45,725 |
| Total deferred tax assets | 565,673 |
| | 527,460 |
| Valuation allowance | (5,773 | ) | | (5,945 | ) | Total deferred tax assets after valuation allowance | 559,900 |
| | 521,515 |
| Deferred tax liabilities: | | | | Capitalized expenses | 30,632 |
| | 32,954 |
| Deferred income | 226,195 |
| | 104,270 |
| Convertible debt basis difference | — |
| | 229 |
| Rialto investments in partnerships | — |
| | 11,055 |
| Other | 25,675 |
| | 32,282 |
| Total deferred tax liabilities | 282,502 |
| | 180,790 |
| Net deferred tax assets | $ | 277,398 |
| | 340,725 |
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The detail of the Company's net deferred tax assets were as follows: | | | | | | | | | November 30, | (In thousands) | 2016 | | 2015 | Net deferred tax assets (liabilities): (1) | | | | Lennar Homebuilding | $ | 249,714 |
| | 327,645 |
| Rialto | 26,547 |
| | 10,518 |
| Lennar Financial Services | 5,919 |
| | 2,562 |
| Lennar Multifamily | (4,782 | ) | | — |
| Net deferred tax assets | $ | 277,398 |
| | 340,725 |
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(1) Net deferred tax assets and net deferred tax liabilities detailed above are included within other assets and other liabilities in the respective segments.
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Summary Of Changes In Gross Unrecognized Tax Benefits |
The following table summarizes the changes in gross unrecognized tax benefits: | | | | | | | | | | | | Years Ended November 30, | (In thousands) | 2016 | | 2015 | | 2014 | Gross unrecognized tax benefits, beginning of year | $ | 12,285 |
| | 7,257 |
| | 10,459 |
| Increase due to tax positions taken during prior period (1) | — |
| | 5,028 |
| | — |
| Decreases due to settlements with taxing authorities (2) | — |
| | — |
| | (3,202 | ) | Gross unrecognized tax benefits, end of year | $ | 12,285 |
| | 12,285 |
| | 7,257 |
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| | (1) | Increased the Company's effective tax rate for the year ended November 30, 2015 from 32.30% to 32.72% due to state audits. |
(2) Decreased the Company's effective tax rate for the year November 30, 2014 from 35.13% to 34.80%.The following summarizes the changes in interest and penalties accrued with respect to gross unrecognized tax benefits: | | | | | | | | | November 30, | (In thousands) | 2016 | | 2015 | Accrued interest and penalties, beginning of the year | $ | 65,145 |
| | 31,469 |
| Accrual of interest and penalties (primarily related to federal and state audits) | 3,251 |
| | 33,841 |
| Reduction of interest and penalties (1) | (22,423 | ) | | (165 | ) | Accrued interest and penalties, end of the year | $ | 45,973 |
| | 65,145 |
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(1) The Company's accrual for interest and penalties was reduced during the year ended November 30, 2016 primarily due to a settlement with the IRS.
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