Earnings Per Share

6 Months Ended

May 31, 2020

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)	2020		2019	2020	2019
Numerator:
Net earnings attributable to Lennar	$	517,406	421,472	915,858	661,382
Less: distributed earnings allocated to nonvested shares	357		94	690	193
Less: undistributed earnings allocated to nonvested shares	5,931		3,063	9,962	4,987
Numerator for basic earnings per share	511,118		418,315	905,206	656,202
Less: net amount attributable to noncontrolling interests in Rialto's Carried Interest Incentive Plan (1)	3,322		3,331	3,322	3,654



Numerator for diluted earnings per share	$	507,796	414,984	901,884	652,548
Denominator:
Denominator for basic earnings per share - weighted average common shares outstanding	308,373		320,329	309,793	320,834
Effect of dilutive securities:
Shared based payments	—		1	1	6

Denominator for diluted earnings per share - weighted average common shares outstanding	308,373		320,330	309,794	320,840
Basic earnings per share	$	1.66	1.31	2.92	2.05
Diluted earnings per share	$	1.65	1.30	2.91	2.03

(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, 2020 and May 31, 2019, there were no options to purchase shares of common stock that were outstanding and anti-dilutive.