Earnings Per Share

6 Months Ended

May 31, 2022

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)	2022		2021	2022	2021
Numerator:
Net earnings attributable to Lennar	$	1,320,756	831,363	1,824,337	1,832,732
Less: distributed earnings allocated to nonvested shares	2,395		776	3,175	1,406
Less: undistributed earnings allocated to nonvested shares	14,980		10,308	19,189	22,026
Numerator for basic earnings per share	1,303,381		820,279	1,801,973	1,809,300
Less: net amount attributable to Rialto's Carried Interest Incentive Plan (1)	1,045		1,569	2,843	2,122



Numerator for diluted earnings per share	$	1,302,336	818,710	1,799,130	1,807,178
Denominator:
Denominator for basic earnings per share - weighted average common shares outstanding	289,895		308,893	291,913	308,957



Denominator for diluted earnings per share - weighted average common shares outstanding	289,895		308,893	291,913	308,957
Basic earnings per share	$	4.50	2.66	6.17	5.86
Diluted earnings per share	$	4.49	2.65	6.16	5.85

(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, 2022 and 2021, there were no options to purchase shares of common stock that were outstanding and anti-dilutive.