Company: LEN
Filing Date: 2025-10-03
Form Type: 10-Q
Source: 0001628280-25-044086
Chunk: 131

Company: LENNAR CORP /NEW/
Filing Date: 2025-10-03
Form: 10-Q
Item: Item 8
Chunk 131
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,589)(212,354)(219,000)Warranty reserve, end of period$422,885 422,280 422,885 422,280 (1)The adjustments to pre-existing warranties from changes in estimates during the three and nine months ended August 31, 2025 and August 31, 2024 primarily related to specific claims in certain of the Company's homebuilding communities and other adjustments.LeasesThe Company has entered into agreements to lease certain office facilities and equipment under operating leases. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. Right-of-use (“ROU”) assets and lease liabilities are recorded on the balance sheet for all leases, except leases with an initial term of 12 months or less. Many of the Company's leases include options to renew. The exercise of lease renewal options is at the Company's option and therefore renewal option payments have not been included in the ROU assets or lease liabilities. The following table includes additional information about the Company's leases: (Dollars in thousands)At August 31, 2025At November 30, 2024Right-of-use assets$285,185 275,248 Lease liabilities275,595 262,119 Weighted-average remaining lease term (in years)5.44.7Weighted-average discount rate5.0%5.0%The Company has entered into agreements to lease certain office facilities and equipment under operating leases. Future minimum payments under the noncancellable leases in effect at August 31, 2025 were as follows:(In thousands)Lease Payments2025$25,889 202686,327 202754,417 202839,013 2029 and thereafter109,099 Total future minimum lease payments (1)$314,745 Less: Interest (2)39,150 Present value of lease liabilities (2)$275,595 (1)Total future minimum lease payments exclude variable lease costs of $34.3 million and short-term lease costs of $2.0 million. (2)The Company's leases do not include a readily determinable implicit rate. As such, the Company estimated the discount rate for these leases to determine the present value of lease payments at the lease commencement date. As of August 31, 2025, the Company recognized the lease liabilities on its condensed consolidated balance sheets within accounts payable and other liabilities of the respective segments.The Company's rental expense on lease liabilities were as follows