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Operating and Reporting Segments (Tables)

9 Months Ended

Aug. 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)			August 31, 2021
Assets:			Homebuilding						Financial Services						Multifamily						Lennar Other						Total
Cash and cash equivalents			$	2,623,320					137,021						15,302						3,498						2,779,141
Restricted cash			21,519						11,330						—						—						32,849
Receivables, net (1)			369,492						408,367						96,649						—						874,508
Inventories			19,105,943						—						351,753						—						19,457,696
Loans held-for-sale (2)			—						1,254,589						—						—						1,254,589
Investments in equity securities (3)			—						—						—						1,149,520						1,149,520
Investments available-for-sale (4)			—						—						—						41,695						41,695
Loans held-for-investment, net			—						61,283						—						—						61,283
Investments held-to-maturity			—						161,532						—						—						161,532
Investments in unconsolidated entities			983,429						—						682,819						387,453						2,053,701
Goodwill			3,442,359						189,699						—						—						3,632,058
Other assets			1,034,691						59,052						80,169						71,706						1,245,618
			$	27,580,753					2,282,873						1,226,692						1,653,872						32,744,190
Liabilities:
Notes and other debts payable, net			$	5,542,513					1,106,447						—						1,906						6,650,866
Other liabilities			4,788,988						165,771						259,145						99,881						5,313,785
			$	10,331,501					1,272,218						259,145						101,787						11,964,651

(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 $63.9 million and $61.6 million without readily available fair values as of August 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 August 31, 2021
(In thousands)			Homebuilding						Financial Services						Multifamily						Lennar Other						Corporate and unallocated						Total
Revenues			$	6,558,509					206,973						167,921						8,000						—						6,941,403
Operating earnings (loss)			1,329,833						112,083						(9,393)						491,972						—						1,924,495
Corporate general and administrative expenses			—						—						—						—						94,942						94,942
Charitable foundation contribution			—						—						—						—						15,199						15,199
Earnings (loss) before income taxes			1,329,833						112,083						(9,393)						491,972						(110,141)						1,814,354
			Three Months Ended August 31, 2020
Revenues			$	5,505,120					237,068						115,170						12,896						—						5,870,254
Operating earnings (loss)			813,744						135,079						(5,148)						7,999						—						951,674
Corporate general and administrative expenses			—						—						—						—						85,998						85,998
Charitable foundation contribution			—						—						—						—						6,663						6,663
Earnings (loss) before income taxes			813,744						135,079						(5,148)						7,999						(92,661)						859,013

			Nine Months Ended August 31, 2021
(In thousands)			Homebuilding						Financial Services						Multifamily						Lennar Other						Corporate and unallocated						Total
Revenues			$	17,529,606					669,789						476,837						20,884						—						18,697,116
Operating earnings			3,275,488						379,610						12,130						909,221						—						4,576,449
Corporate general and administrative expenses			—						—						—						—						296,190						296,190
Charitable foundation contribution			—						—						—						—						42,006						42,006
Earnings before income taxes			3,275,488						379,610						12,130						909,221						(338,196)						4,238,253
			Nine Months Ended August 31, 2020
Revenues			$	14,626,720					631,992						370,904						33,348						—						15,662,964
Operating earnings (loss) (1)			1,905,503						329,722						(4,001)						(9,123)						—						2,222,101
Corporate general and administrative expenses			—						—						—						—						246,815						246,815
Charitable foundation contribution			—						—						—						—						16,144						16,144
Earnings (loss) before income taxes			1,905,503						329,722						(4,001)						(9,123)						(262,959)						1,959,142

(1)Operating loss for Lennar Other for the nine months ended August 31, 2020 included a $25.0 million write-down of assets held by Rialto legacy funds because of the disruption in the capital markets as a result of COVID-19 and the economic shutdown.

The assets related to the Company’s homebuilding segments were as follows:

(In thousands)			East						Central						Texas						West						Other						Corporate and Unallocated						Total Homebuilding
August 31, 2021			$	5,909,905					3,889,907						2,714,717						11,281,110						1,369,977						2,415,137						27,580,753
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 August 31, 2021
(In thousands)			East						Central						Texas						West						Other						Total Homebuilding
Revenues			$	1,678,851					1,268,817						827,229						2,775,556						8,056						6,558,509
Operating earnings (loss)			356,895						197,229						186,008						608,815						(19,114)						1,329,833
			Three Months Ended August 31, 2020
Revenues			$	1,478,659					1,063,621						747,934						2,212,211						2,695						5,505,120
Operating earnings (loss)			244,189						132,678						116,111						342,834						(22,068)						813,744

			Nine Months Ended August 31, 2021
(In thousands)			East						Central						Texas						West						Other						Total Homebuilding
Revenues			$	4,602,560					3,294,842						2,270,566						7,338,906						22,732						17,529,606
Operating earnings (loss)			928,805						488,300						491,708						1,423,332						(56,657)						3,275,488
			Nine Months Ended August 31, 2020
Revenues			$	3,908,421					2,839,415						1,933,918						5,920,804						24,162						14,626,720
Operating earnings (loss)			586,104						292,031						269,071						847,835						(89,538)						1,905,503

Schedule of Line of Credit Facilities

At August 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:
October 2021			$	200,000
December 2021			500,000
April 2022			100,000
July 2022			600,000
Total - Residential facilities			$	1,400,000
LMF Commercial facilities maturing
November 2021			$	100,000
December 2021 (1)			411,438
July 2023			50,000
Total - LMF Commercial facilities			$	561,438
Total			$	1,961,438

(1)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)			August 31, 2021						November 30, 2020
Borrowings under the residential facilities			$	900,332					1,185,797
Collateral under the residential facilities			934,345						1,231,619
Borrowings under the LMF Commercial facilities			54,990						124,617

The Company's outstanding performance letters of credit and surety bonds are described below:

(In thousands)						August 31, 2021						November 30, 2020
Performance letters of credit						$	874,820					752,096
Surety bonds						3,465,134						3,087,711
Anticipated future costs primarily for site improvements related to performance surety bonds						1,595,800						1,584,642

Schedule of Loan Origination Liabilities

The activity in the Company’s loan origination liabilities was as follows:

			Three Months Ended												Nine Months Ended
			August 31,												August 31,
(In thousands)			2021						2020						2021						2020
Loan origination liabilities, beginning of period			$	9,454					10,880						7,569						9,364
Provision for losses			1,147						1,234						3,227						3,149
Payments/settlements			(237)						(24)						(432)						(423)
Loan origination liabilities, end of period			$	10,364					12,090						10,364						12,090

Schedule of Loans Held for Sale

LMF Commercial originated commercial loans as follows:

			Three Months Ended												Nine Months Ended
			August 31,												August 31,
(Dollars in thousands)			2021						2020						2021						2020
Originations (1)			$	178,669					164,380						594,667						582,030
Sold			226,357						164,874						665,062						622,251
Securitizations			1						1						4						4

(1)During both the three and nine months ended August 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)			August 31, 2021						November 30, 2020
Carrying value			$	161,532					164,230
Outstanding debt, net of debt issuance costs			151,124						153,505
Incurred interest rate			3.4		%				3.4		%

Schedule of Fair Value Inputs for Commercial Mortgage-Backed Securities

			August 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 August 31, 2021						As of November 30, 2020
Mortgage prepayment rate			14%						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:

			Nine Months Ended August 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%

Unrealized Gain (Loss) on Investments

The following is a detail of Lennar Other realized and unrealized gain (loss):

			Three Months Ended												Nine Months Ended
			August 31,												August 31,
			2021						2020						2021						2020
Hippo (HIPO) mark to market			$	324,855					—						324,855						—
SmartRent (SMRT) mark to market			100,793						—						100,793						—
Opendoor (OPEN) mark to market			37,301						—						272,756						—
Sunnova (NOVA) mark to market			23,870						—						(14,465)						—
Blend Labs (BLND) mark to market			6,852						—						6,852						—
Gain on sale of solar business			1,531						—						153,006						—
Other realized gain			—						—						3,580						—
			$	495,202					—						847,377						—

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