Company: LEN
Filing Date: 2025-07-01
Form Type: 10-Q
Source: 0001628280-25-033777
Chunk: 114

Company: LENNAR CORP /NEW/
Filing Date: 2025-07-01
Form: 10-Q
Item: Item 8
Chunk 114
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 non-deductible executive compensation, partially offset by tax credits. The increase in the effective tax rate for the three months ended May 31, 2025 from the prior year was primarily due to a decrease in solar tax credits. The increase in the effective tax rate for the six months ended May 31, 2025 from the prior year was primarily due to a decrease in excess tax benefits from share-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 EndedSix Months EndedMay 31,May 31,(In thousands, except per share amounts)2025202420252024Numerator:Net earnings attributable to Lennar$477,449 954,311 996,975 1,673,645 Less: distributed earnings allocated to nonvested shares2,973 2,693 3,929 3,715 Less: undistributed earnings allocated to nonvested shares3,304 8,007 7,160 13,923 Numerator for basic and diluted earnings per share471,172 943,611 985,886 1,656,007 Denominator:Denominator for basic and diluted earnings per share - weighted average common shares outstanding260,286 273,703 261,510 275,325 Basic and diluted earnings per share$1.81 3.45 3.77 6.01 For both the three and six months ended May 31, 2025 and 2024, there were no options to purchase shares of common stock that were outstanding and