XML 21 R11.htm IDEA: XBRL DOCUMENT v3.20.2
Earnings Per Share
9 Months Ended
Aug. 31, 2020
Earnings Per Share [Abstract]  
Earnings Per Share
Earnings Per Share
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
 
Nine Months Ended
 
August 31,
 
August 31,
(In thousands, except per share amounts)
2020
 
2019
 
2020
 
2019
Numerator:
 
 
 
 
 
 
 
Net earnings attributable to Lennar
$
666,418

 
513,366

 
1,582,276

 
1,174,748

Less: distributed earnings allocated to nonvested shares
324

 
119

 
1,014

 
312

Less: undistributed earnings allocated to nonvested shares
7,474

 
4,401

 
17,433

 
9,271

Numerator for basic earnings per share
658,620

 
508,846

 
1,563,829

 
1,165,165

Less: net amount attributable to Rialto's Carried Interest Incentive Plan (1)
3,606

 
1,498

 
6,928

 
4,655

Numerator for diluted earnings per share
$
655,014

 
507,348

 
1,556,901

 
1,160,510

Denominator:
 
 
 
 
 
 
 
Denominator for basic earnings per share - weighted average common shares outstanding
308,889

 
318,103

 
309,492

 
319,924

Effect of dilutive securities:
 
 
 
 
 
 
 
Shared based payments
1

 
1

 
1

 
3

Denominator for diluted earnings per share - weighted average common shares outstanding
308,890

 
318,104

 
309,493

 
319,927

Basic earnings per share
$
2.13

 
1.60

 
5.05

 
3.64

Diluted earnings per share
$
2.12

 
1.59

 
5.03

 
3.63


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