Company: LEN
Filing Date: 2025-07-01
Form Type: 10-Q
Source: 0001628280-25-033777
Chunk: 43

Company: LENNAR CORP /NEW/
Filing Date: 2025-07-01
Form: 10-Q
Item: Item 1
Chunk 43
---
 estate relating to option contracts with Millrose were $720.8 million.

(11)Commitments and Contingent Liabilities

The Company is party to various claims, legal actions and complaints relating to homes sold by the Company arising in the ordinary course of business. In the opinion of management, the disposition of these matters will not have a material adverse effect on the Company’s condensed consolidated financial statements. From time to time, the Company is also a party to various lawsuits involving purchases and sales of real property. These lawsuits often include claims regarding representations 

27

Lennar Corporation and SubsidiariesNotes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

and warranties made in connection with the transfer of properties and disputes regarding the obligation to purchase or sell properties.The Company does not believe that the ultimate resolution of these claims or lawsuits will have a material adverse effect on its business or financial position. However, the financial effect of litigation concerning purchases and sales of property may depend upon the value of the subject property, which may have changed from the time the agreement for purchase or sale was entered into.Product WarrantyWarranty and similar reserves for homes are established at an amount estimated to be adequate to cover potential costs for materials and labor with regard to warranty-type claims expected to be incurred subsequent to the delivery of a home. Reserves are determined based on historical data and trends with respect to similar product types and geographical areas. The activity in the Company’s warranty reserve, which is included in Homebuilding other liabilities, was as follows:Three Months EndedSix Months EndedMay 31,May 31,(In thousands)2025202420252024Warranty reserve, beginning of the period$428,926 405,558 446,240 414,796 Warranties issued63,164 72,572 123,632 134,348 Adjustments to pre-existing warranties from changes in estimates11,824 (381)14,386 (3,285)Payments(61,856)(74,301)(142,200)(142,411)Warranty reserve, end of period$442,058 403,448 442,058 403,448 (1)The adjustments to pre-existing warranties from changes in estimates during the three and six months ended May 31, 2025 and May 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