Company: LEN
Filing Date: 2025-07-01
Form Type: 10-Q
Source: 0001628280-25-033777
Chunk: 44

Company: LENNAR CORP /NEW/
Filing Date: 2025-07-01
Form: 10-Q
Item: Item 1
Chunk 44
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 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 May 31, 2025At November 30, 2024Right-of-use assets$277,127 275,248 Lease liabilities266,270 262,119 Weighted-average remaining lease term (in years)5.24.7Weighted-average discount rate5.1%5.0%

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

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 May 31, 2025 were as follows:(In thousands)Lease Payments2025$48,623 202673,824 202746,918 202835,963 2029 and thereafter99,756 Total future minimum lease payments (1)$305,084 Less: Interest (2)38,814 Present value of lease liabilities (2)$266,270 (1)Total future minimum lease payments exclude variable lease costs of $32.8 million and short-term lease costs of $2.1 million. (2)The Company's leases do not include a readily determinable implicit rate. As such, the Company estimated the discount rate for these leases to determine the present value of lease payments at the lease commencement date. As of May 31, 2025, the Company recognized the lease liabilities on its condensed consolidated balance sheets within accounts payable and other liabilities of the respective segments.The Company's rental expense on lease liabilities were as follows:Six Months Ended May 31,(In thousands)20252024Rental expense$102,628 54,684 In December 2023, the Company purchased its corporate headquarters building in which the Company had previously leased office space. This building contains approximately 213,200 square feet of office space, of which the Company leases approximately 53