Company: LEN
Filing Date: 2025-04-04
Form Type: 10-Q
Source: 0001628280-25-016792
Chunk: 24

Company: LENNAR CORP /NEW/
Filing Date: 2025-04-04
Form: 10-Q
Item: Item 1
Chunk 24
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Average price per share$135.14 $126.68 $150.29 $138.11 

(6)Income Taxes

The provision for income taxes and effective tax rate were as follows:Three Months Ended(Dollars in thousands)February 28, 2025February 29, 2024Provision for income taxes$169,525 210,865 Effective tax rate (1)24.6%22.7%

(1)For the three months ended February 28, 2025 and February 29, 2024, the effective tax rate included state income tax expense and non-deductible executive compensation, partially offset by tax credits. The increase in the effective tax rate from the prior year quarter was primarily due to a decrease in excess tax benefits from shared-based compensation and a decrease in solar tax credits. 

(7)Earnings Per Share

Basic earnings per share is computed by dividing net earnings attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company.All outstanding nonvested shares that contain non-forfeitable rights to dividends or dividend equivalents that participate in undistributed earnings with common stock are considered participating securities and are included in computing earnings per share pursuant to the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating securities according to dividends or dividend equivalents and participation rights in undistributed earnings. The Company’s restricted common stock (“nonvested shares”) is considered participating securities.Basic and diluted earnings per share were calculated as follows:Three Months Ended(In thousands, except per share amounts)February 28, 2025February 29, 2024Numerator:Net earnings attributable to Lennar$519,526 719,334 Less: distributed earnings allocated to nonvested shares955 1,023 Less: undistributed earnings allocated to nonvested shares3,862 5,877 Numerator for basic and diluted earnings per share514,709 712,434 Denominator:Denominator for basic and diluted earnings per share - weighted average common shares outstanding262,733 276,946 Basic and diluted earnings per share$1.96 2.57 For both the three months ended