Company: LEN
Filing Date: 2025-07-01
Form Type: 10-Q
Source: 0001628280-25-033777
Chunk: 36

Company: LENNAR CORP /NEW/
Filing Date: 2025-07-01
Form: 10-Q
Item: Item 1
Chunk 36
---
, Net (1)Carrying ValueFair ValueTotal Losses, Net (1)Homebuilding - non-financial assets:Finished homes and construction in progress (2)Level 3$742,658 672,632 (70,026)192,309 168,985 (23,324)Land and land under development (2)Level 3191 134 (57)— — — Deposits and pre-acquisition costs on real estate (3)Level 38,928 — (8,928)3,202 — (3,202)Multifamily - non-financial assets:Investments in unconsolidated entities (4)Level 3$10,716 — (10,716)— — — (1)Represents losses due to valuation adjustments and deposit and pre-acquisition write-offs recorded during the respective periods.

24

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

(2)Valuation adjustments for finished homes and construction in progress, and land and land under development were included in Homebuilding costs and expenses in the Company's condensed consolidated financial statements.(3)Forfeited deposits and write-off of pre-acquisition costs on real estate were included in Homebuilding costs and expenses in the Company's condensed consolidated statements of operations and comprehensive income (loss).(4)Valuation adjustments related to investments in unconsolidated entities were primarily included in Multifamily other income (expense), net in the Company's condensed consolidated statements of operations and comprehensive income (loss) for the three and six months ended May 31, 2025.Finished homes and construction in progress are included within inventories. Inventories are stated at cost unless the inventory within a community is determined to be impaired, in which case the impaired inventory is written down to fair value. The Company disclosed its accounting policy related to inventories and its review for indicators of impairment in the Summary of Significant Accounting Policies in its 2024 Form 10-K.The Company estimates the fair value of inventory evaluated for impairment based on market conditions and assumptions made by management at the time the inventory is evaluated, which may differ materially from actual results if market conditions or assumptions change. For example, changes in market conditions and other specific developments or changes in assumptions may cause the Company to re-evaluate its strategy regarding previously impaired inventory, as well as inventory not currently impaired but for which