Company: LEN
Filing Date: 2025-01-23
Form Type: 10-K
Source: 0001628280-25-002404
Chunk: 4

Company: LENNAR CORP /NEW/
Filing Date: 2025-01-23
Form: 10-K
Item: Item 8
Chunk 4
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 of auditor judgment and an increased extent of audit effort due to the complexity of the entity structures and agreements. 

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the accounting determination for the above mentioned joint ventures included the following, among others: 

•We tested the design and operating effectiveness of the investment consolidation controls over the initial accounting assessment of joint ventures and the continuous reassessment for reconsideration events, as required by the accounting framework.

•We selected a sample of unconsolidated and consolidated joint ventures and evaluated the appropriateness of the Company’s accounting conclusions upon formation and reconsideration events by:

◦Reading the joint venture agreements and other related documents and evaluating the structure and terms of the agreement as well as any reconsideration events which took place during the year to determine if the joint venture should be classified as a VIE. 

◦If an entity is determined to be a VIE, considering whether the Company appropriately determined the primary beneficiary by evaluating the contractual arrangements of the entity to determine if the Company has the power to direct activities that most significantly impact the VIE’s economic performance, and if the Company has the obligation to absorb losses of the entity or the right to receive benefits from the entity that could be significant to the VIE. 

◦For consolidated joint ventures, evaluating whether any reconsideration events occurred during the year that would result in deconsolidation, and if so, verify that deconsolidation occurred properly.

◦Evaluating the evidence obtained in other areas of the audit to determine if there were additional reconsideration events that had not been identified by the Company, including, among others, reading joint venture board minutes and agreeing the terms of certain joint venture agreements and side agreements, if any. 

/s/ Deloitte & Touche LLP

Miami, Florida

January 23, 2025

We have served as the Company's auditor since 1994.

49

LENNAR CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

November 30, 2024 and 2023 

2024 (1)2023 (1)(Dollars in thousands)ASSETSHomebuilding:Cash and cash equivalents$4,662,643 6,273,724 Restricted cash11,799 13,481 Receivables, net1,053,211 887,992 Inventories:Finished homes and construction in progress10,884,861 10,