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Operating and Reporting Segments (Tables) | 6 Months Ended
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May 31, 2021
Segment Reporting [Abstract] |
Disclosure Of Financial Information Relating To Company's Operations | The assets and liabilities related to the Company’s segments were as follows:
(In thousands) | May 31, 2021
Assets: | Homebuilding |  | Financial Services |  | Multifamily |  | Lennar Other |  | Total
Cash and cash equivalents | $ | 2,581,583 |  |  | 130,528 |  |  | 22,395 |  |  | 3,074 |  |  | 2,737,580 |
Restricted cash | 35,637 |  |  | 9,728 |  |  | — |  |  | — |  |  | 45,365 |
Receivables, net (1) | 353,910 |  |  | 422,117 |  |  | 111,802 |  |  | — |  |  | 887,829 |
Inventories | 18,418,999 |  |  | — |  |  | 316,760 |  |  | — |  |  | 18,735,759 |
Loans held-for-sale (2) | — |  |  | 1,015,438 |  |  | — |  |  | — |  |  | 1,015,438 |
Investments in equity securities (3) | — |  |  | — |  |  | — |  |  | 544,993 |  |  | 544,993 |
Investments available-for-sale (4) | — |  |  | — |  |  | — |  |  | 41,563 |  |  | 41,563 |
Loans held-for-investment, net | — |  |  | 77,680 |  |  | — |  |  | — |  |  | 77,680 |
Investments held-to-maturity | — |  |  | 162,919 |  |  | — |  |  | — |  |  | 162,919 |
Investments in unconsolidated entities | 1,010,256 |  |  | — |  |  | 691,330 |  |  | 379,236 |  |  | 2,080,822 |
Goodwill | 3,442,359 |  |  | 189,699 |  |  | — |  |  | — |  |  | 3,632,058 |
Other assets | 1,030,681 |  |  | 58,565 |  |  | 66,983 |  |  | 104,992 |  |  | 1,261,221 |
| $ | 26,873,425 |  |  | 2,066,674 |  |  | 1,209,270 |  |  | 1,073,858 |  |  | 31,223,227 |
Liabilities: |  |  |  |  |  |  |  |  |
Notes and other debts payable, net | $ | 5,894,342 |  |  | 928,185 |  |  | — |  |  | 1,906 |  |  | 6,824,433 |
Other liabilities | 4,222,091 |  |  | 156,653 |  |  | 255,327 |  |  | 62,625 |  |  | 4,696,696 |
| $ | 10,116,433 |  |  | 1,084,838 |  |  | 255,327 |  |  | 64,531 |  |  | 11,521,129 |
(In thousands) | November 30, 2020
Assets: | Homebuilding |  | Financial Services |  | Multifamily |  | Lennar Other |  | Total
Cash and cash equivalents | $ | 2,703,986 |  |  | 116,171 |  |  | 38,963 |  |  | 3,918 |  |  | 2,863,038 |
Restricted cash | 15,211 |  |  | 54,481 |  |  | — |  |  | — |  |  | 69,692 |
Receivables, net (1) | 298,671 |  |  | 552,779 |  |  | 86,629 |  |  | — |  |  | 938,079 |
Inventories | 16,925,228 |  |  | — |  |  | 249,920 |  |  | — |  |  | 17,175,148 |
Loans held-for-sale (2) | — |  |  | 1,490,105 |  |  | — |  |  | — |  |  | 1,490,105 |
Investments in equity securities (3) | — |  |  | — |  |  | — |  |  | 68,771 |  |  | 68,771 |
Investments available-for-sale (4) | — |  |  | — |  |  | — |  |  | 53,497 |  |  | 53,497 |
Loans held-for-investment, net | — |  |  | 72,626 |  |  | — |  |  | — |  |  | 72,626 |
Investments held-to-maturity | — |  |  | 164,230 |  |  | — |  |  | — |  |  | 164,230 |
Investments in unconsolidated entities | 953,177 |  |  | — |  |  | 724,647 |  |  | 387,097 |  |  | 2,064,921 |
Goodwill | 3,442,359 |  |  | 189,699 |  |  | — |  |  | — |  |  | 3,632,058 |
Other assets | 1,190,793 |  |  | 68,027 |  |  | 75,749 |  |  | 8,443 |  |  | 1,343,012 |
| $ | 25,529,425 |  |  | 2,708,118 |  |  | 1,175,908 |  |  | 521,726 |  |  | 29,935,177 |
Liabilities: |  |  |  |  |  |  |  |  |
Notes and other debts payable, net | $ | 5,955,758 |  |  | 1,463,919 |  |  | — |  |  | 1,906 |  |  | 7,421,583 |
Other liabilities | 3,969,893 |  |  | 180,329 |  |  | 252,911 |  |  | 11,060 |  |  | 4,414,193 |
| $ | 9,925,651 |  |  | 1,644,248 |  |  | 252,911 |  |  | 12,966 |  |  | 11,835,776 |
(1)Receivables, net for Financial Services primarily related to loans sold to investors for which the Company had not yet been paid. (2)Loans held-for-sale related to unsold residential and commercial loans carried at fair value. (3)Investments in equity securities include investments of $83.8 million and $61.6 million without readily available fair values as of May 31, 2021 and November 30, 2020, respectively. (4)Investments available-for-sale are carried at fair value with changes in fair value recorded as a component of accumulated other comprehensive income (loss) on the condensed consolidated balance sheet. Financial information relating to the Company’s segments was as follows:
| Three Months Ended May 31, 2021
(In thousands) | Homebuilding |  | Financial Services |  | Multifamily |  | Lennar Other |  | Corporate and unallocated |  | Total
Revenues | $ | 6,028,041 |  |  | 218,747 |  |  | 177,473 |  |  | 5,984 |  |  | — |  |  | 6,430,245 |
Operating earnings (loss) | 1,112,475 |  |  | 121,320 |  |  | 22,397 |  |  | (54,097) |  |  | — |  |  | 1,202,095 |
Corporate general and administrative expenses | — |  |  | — |  |  | — |  |  | — |  |  | 90,717 |  |  | 90,717 |
Charitable foundation contribution | — |  |  | — |  |  | — |  |  | — |  |  | 14,493 |  |  | 14,493 |
Earnings (loss) before income taxes | 1,112,475 |  |  | 121,320 |  |  | 22,397 |  |  | (54,097) |  |  | (105,210) |  |  | 1,096,885 |
| Three Months Ended May 31, 2020
Revenues | $ | 4,949,484 |  |  | 196,263 |  |  | 123,117 |  |  | 18,509 |  |  | — |  |  | 5,287,373 |
Operating earnings (loss) | 631,361 |  |  | 147,326 |  |  | (638) |  |  | (18,021) |  |  | — |  |  | 760,028 |
Corporate general and administrative expenses | — |  |  | — |  |  | — |  |  | — |  |  | 78,183 |  |  | 78,183 |
Charitable foundation contribution | — |  |  | — |  |  | — |  |  | — |  |  | 5,268 |  |  | 5,268 |
Earnings (loss) before income taxes | 631,361 |  |  | 147,326 |  |  | (638) |  |  | (18,021) |  |  | (83,451) |  |  | 676,577 |
| Six Months Ended May 31, 2021
(In thousands) | Homebuilding |  | Financial Services |  | Multifamily |  | Lennar Other |  | Corporate and unallocated |  | Total
Revenues | $ | 10,971,097 |  |  | 462,816 |  |  | 308,916 |  |  | 12,884 |  |  | — |  |  | 11,755,713 |
Operating earnings | 1,945,655 |  |  | 267,527 |  |  | 21,523 |  |  | 417,249 |  |  | — |  |  | 2,651,954 |
Corporate general and administrative expenses | — |  |  | — |  |  | — |  |  | — |  |  | 201,248 |  |  | 201,248 |
Charitable foundation contribution | — |  |  | — |  |  | — |  |  | — |  |  | 26,807 |  |  | 26,807 |
Earnings (loss) before income taxes | 1,945,655 |  |  | 267,527 |  |  | 21,523 |  |  | 417,249 |  |  | (228,055) |  |  | 2,423,899 |
| Six Months Ended May 31, 2020
Revenues | $ | 9,121,600 |  |  | 394,924 |  |  | 255,734 |  |  | 20,452 |  |  | — |  |  | 9,792,710 |
Operating earnings (loss) | 1,091,759 |  |  | 194,643 |  |  | 1,147 |  |  | (17,122) |  |  | — |  |  | 1,270,427 |
Corporate general and administrative expenses | — |  |  | — |  |  | — |  |  | — |  |  | 160,817 |  |  | 160,817 |
Charitable foundation contribution | — |  |  | — |  |  | — |  |  | — |  |  | 9,481 |  |  | 9,481 |
Earnings (loss) before income taxes | 1,091,759 |  |  | 194,643 |  |  | 1,147 |  |  | (17,122) |  |  | (170,298) |  |  | 1,100,129 |
The assets related to the Company’s homebuilding segments were as follows:
(In thousands) | East |  | Central |  | Texas |  | West |  | Other |  | Corporate and Unallocated |  | Total Homebuilding
May 31, 2021 | $ | 5,749,998 |  |  | 3,713,952 |  |  | 2,510,950 |  |  | 11,131,940 |  |  | 1,326,516 |  |  | 2,440,069 |  |  | 26,873,425 |
November 30, 2020 | 5,308,114 |  |  | 3,438,600 |  |  | 2,150,916 |  |  | 10,504,374 |  |  | 1,301,618 |  |  | 2,825,803 |  |  | 25,529,425 |
Financial information relating to the Company’s homebuilding segments was as follows:
| Three Months Ended May 31, 2021
(In thousands) | East |  | Central |  | Texas |  | West |  | Other |  | Total Homebuilding
Revenues | $ | 1,567,768 |  |  | 1,097,582 |  |  | 799,259 |  |  | 2,553,771 |  |  | 9,661 |  |  | 6,028,041 |
Operating earnings (loss) | 309,827 |  |  | 159,048 |  |  | 176,057 |  |  | 492,811 |  |  | (25,268) |  |  | 1,112,475 |
| Three Months Ended May 31, 2020
Revenues | $ | 1,277,431 |  |  | 986,284 |  |  | 712,756 |  |  | 1,959,823 |  |  | 13,190 |  |  | 4,949,484 |
Operating earnings (loss) | 192,887 |  |  | 103,904 |  |  | 99,887 |  |  | 280,094 |  |  | (45,411) |  |  | 631,361 |
| Six Months Ended May 31, 2021
(In thousands) | East |  | Central |  | Texas |  | West |  | Other |  | Total Homebuilding
Revenues | $ | 2,923,710 |  |  | 2,026,024 |  |  | 1,443,337 |  |  | 4,563,350 |  |  | 14,676 |  |  | 10,971,097 |
Operating earnings (loss) | 571,910 |  |  | 291,071 |  |  | 305,700 |  |  | 814,517 |  |  | (37,543) |  |  | 1,945,655 |
| Six Months Ended May 31, 2020
Revenues | $ | 2,429,763 |  |  | 1,775,794 |  |  | 1,185,984 |  |  | 3,708,592 |  |  | 21,467 |  |  | 9,121,600 |
Operating earnings (loss) | 341,641 |  |  | 159,627 |  |  | 152,960 |  |  | 505,001 |  |  | (67,470) |  |  | 1,091,759 |
Schedule of Line of Credit Facilities | At May 31, 2021, the Financial Services warehouse facilities were all 364-day repurchase facilities and were used to fund residential mortgages or commercial mortgages for LMF Commercial as follows:
(In thousands) | Maximum Aggregate Commitment
Residential facilities maturing: |
June 2021 (1) | $ | 600,000 |
July 2021 | 200,000 |
December 2021 | 500,000 |
April 2022 | 100,000 |
Total - Residential facilities | $ | 1,400,000 |
LMF Commercial facilities maturing |
November 2021 | $ | 100,000 |
December 2021 (2) | 611,438 |
Total - LMF Commercial facilities | $ | 711,438 |
Total | $ | 2,111,438 |
(1)Subsequent to May 31, 2021, the maturity due date was extended to July 2021. (2)Includes $11.4 million warehouse repurchase facility used by LMF Commercial to finance the origination of floating rate accrual loans, which are reported as accrual loans within loans held-for-investment, net. Borrowings and collateral under the facilities and their prior year predecessors were as follows:
(In thousands) | May 31, 2021 |  | November 30, 2020
Borrowings under the residential facilities | $ | 671,541 |  |  | 1,185,797 |
Collateral under the residential facilities | 695,275 |  |  | 1,231,619 |
Borrowings under the LMF Commercial facilities | 104,247 |  |  | 124,617 |
The Company's outstanding performance letters of credit and surety bonds are described below:
(In thousands) |  | May 31, 2021 |  | November 30, 2020
Performance letters of credit |  | $ | 817,831 |  |  | 752,096 |
Surety bonds |  | 3,306,473 |  |  | 3,087,711 |
Anticipated future costs primarily for site improvements related to performance surety bonds |  | 1,743,993 |  |  | 1,584,642 |
Schedule of Loan Origination Liabilities | The activity in the Company’s loan origination liabilities was as follows:
| Three Months Ended |  | Six Months Ended
| May 31, |  | May 31,
(In thousands) | 2021 |  | 2020 |  | 2021 |  | 2020
Loan origination liabilities, beginning of period | $ | 8,433 |  |  | 9,996 |  |  | 7,569 |  |  | 9,364 |
Provision for losses | 1,114 |  |  | 1,139 |  |  | 2,080 |  |  | 1,915 |
Payments/settlements | (93) |  |  | (255) |  |  | (195) |  |  | (399) |
Loan origination liabilities, end of period | $ | 9,454 |  |  | 10,880 |  |  | 9,454 |  |  | 10,880 |
Schedule of Loans Held for Sale | LMF Commercial originated commercial loans as follows:
| Three Months Ended |  | Six Months Ended
| May 31, |  | May 31,
(Dollars in thousands) | 2021 |  | 2020 |  | 2021 |  | 2020
Originations (1) | $ | 196,498 |  |  | 5,400 |  |  | 415,998 |  |  | 417,650 |
Sold | 155,740 |  |  | 142,938 |  |  | 438,705 |  |  | 457,377 |
Securitizations | 1 |  | 1 |  | 3 |  |  | 3 |
(1)During both the three and six months ended May 31, 2021 and 2020 all the commercial loans originated were recorded as loans held-for-sale, which are held at fair value.
Schedule of Commercial Mortgage-Backed Securities | Details related to Financial Services' CMBS were as follows:
(Dollars in thousands) | May 31, 2021 |  | November 30, 2020
Carrying value | $ | 162,919 |  |  | 164,230 |
Outstanding debt, net of debt issuance costs | 152,396 |  |  | 153,505 |
Incurred interest rate | 3.4 | % |  | 3.4 | %
Schedule of Fair Value Inputs for Commercial Mortgage-Backed Securities |
| May 31, 2021
Discount rates at purchase | 6% | — | 84%
Coupon rates | 2.0% | — | 5.3%
Distribution dates | October 2027 | — | December 2028
Stated maturity dates | October 2050 | — | December 2051
The key assumptions, which are generally unobservable inputs, used in the valuation of the mortgage servicing rights include mortgage prepayment rates, discount rates and delinquency rates and are noted below:
Unobservable inputs | As of May 31, 2021 |  | As of November 30, 2020
Mortgage prepayment rate | 13% |  | 18%
Discount rate | 14% |  | 12%
Delinquency rate | 3% |  | 4%
The table below summarizes the most significant unobservable inputs used in the Company's discounted cash flow model to determine the fair value of its communities for which the Company recorded valuation adjustments:
| Six Months Ended
| May 31,
| 2021 |  | 2020
Unobservable inputs |  |  | Range
Average selling price | $635,000 |  |  |  | 201,000 |  | - | 970,000
Absorption rate per quarter (homes) | 11 |  |  |  | 3 | - | 15
Discount rate | 20% |  | 20%

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