Company: LEN
Filing Date: 2025-01-23
Form Type: 10-K
Source: 0001628280-25-002404
Chunk: 65

Company: LENNAR CORP /NEW/
Filing Date: 2025-01-23
Form: 10-K
Item: Item 8
Chunk 65
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 of the other unconsolidated VIEs. While the Company has option contracts to purchase land from certain of its unconsolidated VIEs, the Company is not required to purchase the assets and could walk away from the contracts.Option ContractsThe Company has access to land through option contracts, which generally enable it to control portions of properties owned by third parties (including land banks) until the Company has determined whether to exercise the options.The Company evaluates option contracts with third party land holding companies for land to determine whether they are VIEs and, if so, whether the Company is the primary beneficiary of certain of these option contracts. Although the Company does not have legal title to the optioned land, if the Company is deemed to be the primary beneficiary and makes a significant deposit or pre-acquisition cost investment for optioned land, or is otherwise economically compelled to takedown the optioned land, it may need to consolidate the land under option at the purchase price of the optioned land. As of November 30, 2024, land under option with third parties that the Company was economically compelled to takedown was $2.8 billion, of which $1.5 billion were land purchase contract obligations due to land banks upon maturity of the contracts. The Company’s intention is to have other land banks close on the land purchase commitments and the Company will option the land from the land banks. Land under option with third parties is included in consolidated inventory not owned. Consolidated inventory not owned related to land financing transactions, which are land sale transactions that did not meet the criteria for revenue recognition and derecognition of land by the Company as a result of the Company maintaining an option to repurchase the land in the future, was $1.2 billion as of November 30, 2024.

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Table of ContentsLENNAR CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

The Company’s exposure to losses on its option contracts with third parties and unconsolidated entities was as follows:At November 30,(In thousands)20242023Non-refundable option deposits and pre-acquisition costs$3,529,889 1,949,219 Non-refundable option deposits included in consolidated inventory not owned520,731 451,632 Letters of credit in lieu of cash deposits under certain land and option contracts341,834 198,920 For the year ended November 30, 2024, the Company purchased a significant