Company: LEN
Filing Date: 2025-04-04
Form Type: 10-Q
Source: 0001628280-25-016792
Chunk: 108

Company: LENNAR CORP /NEW/
Filing Date: 2025-04-04
Form: 10-Q
Item: Item 8
Chunk 108
---
, was $994.0 million as of February 28, 2025.During the three months ended February 28, 2025, consolidated inventory not owned decreased by $630.0 million with a corresponding decrease to liabilities related to consolidated inventory not owned in the accompanying condensed consolidated balance sheet as of February 28, 2025. The decrease was primarily due to homesite takedowns and reassessment of certain 

24

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

option contracts. This reassessment resulted in a decrease of $1.1 billion of consolidated inventories not owned with a corresponding decrease of $1.0 billion of liabilities related to consolidated inventories not owned. The decrease was partially offset by the consolidation of homesites under option that the Company is economically compelled to takedown, which resulted in an increase of $801.4 million of consolidated inventories not owned with a corresponding increase of $739.2 million of liabilities related to consolidated inventories not owned. To reflect the purchase price of the homesite takedowns, the Company had a net reclass related to option deposits from consolidated inventory not owned to finished homes and construction in progress in the accompanying condensed consolidated balance sheet as of February 28, 2025. The liabilities related to consolidated inventory not owned primarily represent the difference between the option exercise prices for the optioned land and the Company’s cash deposits.The Company's exposure to losses on its option contracts with third parties and unconsolidated entities was as follows:(In thousands)At February 28, 2025At November 30, 2024Non-refundable option deposits and pre-acquisition costs$5,055,676 3,529,889 Non-refundable option deposits included in consolidated inventory not owned417,557 520,731 Letters of credit in lieu of cash deposits under certain land and option contracts401,454 341,834 For the three months ended February 28, 2025, the Company purchased a significant portion of land from three land banks (the “Land Banks”). There were no amounts due to the Land Banks as of February 28, 2025, resulting from land purchases as the full purchase price of the land is typically paid to the Land Banks at closing when land is purchased by the Company. As of February 28, 2025, the total deposits and pre-acquisition costs on real estate relating to contracts with the Land