Earnings Per Share

6 Months Ended

May 31, 2023

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 Ended			Six Months Ended
	May 31,			May 31,
(In thousands, except per share amounts)	2023		2022	2023	2022
Numerator:
Net earnings attributable to Lennar	$	871,694	1,320,756	1,468,228	1,824,337
Less: distributed earnings allocated to nonvested shares	3,572		2,395	4,296	3,175
Less: undistributed earnings allocated to nonvested shares	9,935		14,980	15,695	19,189
Numerator for basic earnings per share	858,187		1,303,381	1,448,237	1,801,973
Less: net amount attributable to Rialto's Carried Interest Incentive Plan (1)	—		1,045	—	2,843



Numerator for diluted earnings per share	$	858,187	1,302,336	1,448,237	1,799,130
Denominator:
Denominator for basic earnings per share - weighted average common shares outstanding	284,910		289,895	285,492	291,913



Denominator for diluted earnings per share - weighted average common shares outstanding	284,910		289,895	285,492	291,913
Basic earnings per share	$	3.01	4.50	5.07	6.17
Diluted earnings per share	$	3.01	4.49	5.07	6.16

(1)The amounts presented relate to Rialto's Carried Interest Incentive Plan and represent the difference between the advanced tax distributions received from the Rialto funds included in the Lennar Other segment and the amount Lennar is assumed to own.

For both the three and six months ended May 31, 2023 and 2022, there were no options to purchase shares of common stock that were outstanding and anti-dilutive.