Earnings Per Share

3 Months Ended

Feb. 29, 2024

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

(In thousands, except per share amounts)	February 29, 2024		February 28, 2023
Numerator:
Net earnings attributable to Lennar	$	719,334	596,534
Less: distributed earnings allocated to nonvested shares	1,023		724
Less: undistributed earnings allocated to nonvested shares	5,877		5,895
Numerator for basic earnings per share	712,434		589,915
Less: net amount attributable to Rialto's Carried Interest Incentive Plan (1)	—		1,038



Numerator for diluted earnings per share	$	712,434	588,877
Denominator:
Denominator for basic earnings per share - weighted average common shares outstanding	276,946		286,074



Denominator for diluted earnings per share - weighted average common shares outstanding	276,946		286,074
Basic earnings per share	$	2.57	2.06
Diluted earnings per share	$	2.57	2.06

(1)The amount presented relate to Rialto's Carried Interest Incentive Plan and represents 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 months ended February 29, 2024 and February 28, 2023, there were no options to purchase shares of common stock that were outstanding and anti-dilutive.