Company: LEN
Filing Date: 2025-04-04
Form Type: 10-Q
Source: 0001628280-25-016792
Chunk: 110

Company: LENNAR CORP /NEW/
Filing Date: 2025-04-04
Form: 10-Q
Item: Item 8
Chunk 110
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 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:

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

Three Months Ended(In thousands)February 28, 2025February 29, 2024Warranty reserve, beginning of the period$446,240 414,796 Warranties issued60,468 61,776 Adjustments to pre-existing warranties from changes in estimates2,562 (2,904)Payments(80,344)(68,110)Warranty reserve, end of period$428,926 405,558 (1)The adjustments to pre-existing warranties from changes in estimates during the three months ended February 28, 2025 and February 29, 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 facilities and equipment under operating leases. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. Right-of-use (“ROU”) assets and lease liabilities are recorded on the balance sheet for all leases, except leases with an initial term of 12 months or less. Many of the Company's leases include options to renew. The exercise of lease renewal options is at the Company's option and therefore renewal option payments have not been included in the ROU assets or lease liabilities. The following table includes additional information about the Company's leases: (Dollars in thousands)At February 2025At November 30, 2024Right-of-use assets$270,683 275,248 Lease liabilities256,082 262,119 Weighted-average remaining lease term (in years)4.84.7Weighted-average discount rate5.1%5.0%The Company has entered into agreements to lease certain office facilities and equipment under operating leases. Future minimum payments under the noncancellable leases in effect at February 28, 2025 were as follows:(In thousands)Lease Payments2025$77,685 202666,473 202740,978 202831,228