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Operating and Reporting Segments
 9 Months Ended
Aug. 31, 2021
Segment Reporting [Abstract]  
Operating and Reporting Segments Operating and Reporting Segments
The Company's homebuilding operations construct and sell homes primarily for first-time, move-up and active adult homebuyers primarily under the Lennar brand name. In addition, the Company's homebuilding operations purchase, develop and sell land to third parties. The Company's chief operating decision makers manage and assess the Company’s performance at a regional level. Therefore, the Company performed an assessment of its operating segments in accordance with ASC 280, Segment Reporting, and determined that the following are its operating and reportable segments:
Homebuilding segments: (1) East (2) Central (3) Texas (4) West
(5) Financial Services
(6) Multifamily
(7) Lennar Other
The assets and liabilities related to the Company’s segments were as follows:
(In thousands)August 31, 2021
Assets:HomebuildingFinancial
Services		MultifamilyLennar
Other		Total
Cash and cash equivalents$2,623,320 137,021 15,302 3,498 2,779,141 
Restricted cash21,519 11,330 — — 32,849 
Receivables, net (1)369,492 408,367 96,649 — 874,508 
Inventories19,105,943 — 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 entities983,429 — 682,819 387,453 2,053,701 
Goodwill3,442,359 189,699 — — 3,632,058 
Other assets1,034,691 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 liabilities4,788,988 165,771 259,145 99,881 5,313,785 
$10,331,501 1,272,218 259,145 101,787 11,964,651 
(In thousands)November 30, 2020
Assets:HomebuildingFinancial
Services		MultifamilyLennar
Other		Total
Cash and cash equivalents$2,703,986 116,171 38,963 3,918 2,863,038 
Restricted cash15,211 54,481 — — 69,692 
Receivables, net (1)298,671 552,779 86,629 — 938,079 
Inventories16,925,228 — 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 entities953,177 — 724,647 387,097 2,064,921 
Goodwill3,442,359 189,699 — — 3,632,058 
Other assets1,190,793 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 liabilities3,969,893 180,329 252,911 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)HomebuildingFinancial ServicesMultifamilyLennar OtherCorporate 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 taxes1,329,833 112,083 (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 taxes813,744 135,079 (5,148)7,999 (92,661)859,013 
Nine Months Ended August 31, 2021
(In thousands)HomebuildingFinancial ServicesMultifamilyLennar OtherCorporate and
unallocated		Total
Revenues
$17,529,606 669,789 476,837 20,884 — 18,697,116 
Operating earnings3,275,488 379,610 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 taxes3,275,488 379,610 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 taxes1,905,503 329,722 (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.

Homebuilding Segments
Information about homebuilding activities in states which are not economically similar to other states in the same geographic area is grouped under "Homebuilding Other," which is not considered a reportable segment.
Evaluation of segment performance is based primarily on operating earnings (loss) before income taxes. Operations of the Company’s Homebuilding segments primarily include the construction and sale of single-family attached and detached homes as well as the purchase, development and sale of residential land directly and through the Company’s unconsolidated entities. Operating earnings (loss) for the Homebuilding segments consist of revenues generated from the sales of homes and land, other revenues from management fees and forfeited deposits, equity in earnings (loss) from unconsolidated entities and other income (expense), net, less the cost of homes sold and land sold, and selling, general and administrative expenses incurred by the segment.
The Company’s reportable Homebuilding segments and all other homebuilding operations not required to be reported separately have homebuilding divisions located in:
East: Florida, New Jersey, Pennsylvania and South Carolina
Central: Georgia, Illinois, Indiana, Maryland, Minnesota, North Carolina and Virginia
Texas: Texas
West: Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah and Washington
Other: Urban divisions and other homebuilding related investments primarily in California, including FivePoint Holdings, LLC ("FivePoint")
The assets related to the Company’s homebuilding segments were as follows:
(In thousands)EastCentralTexasWestOtherCorporate and UnallocatedTotal 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, 20205,308,114 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)EastCentralTexasWestOtherTotal 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)EastCentralTexasWestOtherTotal 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 
Financial Services
Operations of the Financial Services segment include primarily mortgage financing, title and closing services primarily for buyers of the Company’s homes. It also includes originating and selling into securitizations commercial mortgage loans through its LMF Commercial business. Financial Services’ operating earnings consist of revenues generated primarily from mortgage financing, title and closing services, and property and casualty insurance, less the cost of such services and certain selling, general and administrative expenses incurred by the segment. The Financial Services segment operates generally in the same states as the Company’s homebuilding operations.
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 2021500,000 
April 2022100,000 
July 2022600,000 
Total - Residential facilities
$1,400,000 
LMF Commercial facilities maturing
November 2021$100,000 
December 2021 (1)411,438 
July 202350,000 
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.
The Financial Services segment uses the residential facilities to finance its residential lending activities until the mortgage loans are sold to investors and the proceeds are collected. The facilities are non-recourse to the Company and are expected to be renewed or replaced with other facilities when they mature. The LMF Commercial facilities finance LMF Commercial loan originations and securitization activities and were secured by up to an 80% interest in the originated commercial loans financed.
Borrowings and collateral under the facilities and their prior year predecessors were as follows:
(In thousands)August 31, 2021November 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 
If the facilities are not renewed or replaced, the borrowings under the lines of credit will be repaid by selling the mortgage loans held-for-sale to investors and by collecting receivables on loans sold but not yet paid for. Without the facilities, the Financial Services segment would have to use cash from operations and other funding sources to finance its lending activities.
Substantially all of the residential loans the Financial Services segment originates are sold within a short period in the secondary mortgage market on a servicing released, non-recourse basis. After the loans are sold, the Company retains potential liability for possible claims by purchasers that it breached certain limited industry-standard representations and warranties in the loan sale agreements. Purchasers sometimes try to defray losses by purporting to have found inaccuracies related to sellers’ representations and warranties in particular loan sale agreements. Mortgage investors could seek to have the Company buy back mortgage loans or compensate them for losses incurred on mortgage loans that the Company has sold based on claims that the Company breached its limited representations or warranties. The Company’s mortgage operations have established accruals for
possible losses associated with mortgage loans previously originated and sold to investors. The Company establishes accruals for such possible losses based upon, among other things, an analysis of repurchase requests received, an estimate of potential repurchase claims not yet received and actual past repurchases and losses through the disposition of affected loans as well as previous settlements. While the Company believes that it has adequately reserved for known losses and projected repurchase requests, given the volatility in the residential mortgage industry and the uncertainty regarding the ultimate resolution of these claims, if either actual repurchases or the losses incurred resolving those repurchases exceed the Company’s expectations, additional recourse expense may be incurred. Loan origination liabilities are included in Financial Services’ liabilities in the Company's condensed consolidated balance sheets. The activity in the Company’s loan origination liabilities was as follows:
Three Months EndedNine Months Ended
August 31,August 31,
(In thousands)2021202020212020
Loan origination liabilities, beginning of period$9,454 10,880 7,569 9,364 
Provision for losses1,147 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 
LMF Commercial - loans held-for-sale
LMF Commercial originated commercial loans as follows:
Three Months EndedNine Months Ended
August 31,August 31,
(Dollars in thousands)2021202020212020
Originations (1)$178,669 164,380 594,667 582,030 
Sold226,357 164,874 665,062 622,251 
Securitizations114 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.
Investments held-to-maturity
At August 31, 2021 and November 30, 2020, the Financial Services segment held commercial mortgage-backed securities ("CMBS"). These securities are classified as held-to-maturity based on its intent and ability to hold the securities until maturity and changes in estimated cash flows are reviewed periodically to determine if an other-than-temporary impairment has occurred. Based on the segment’s assessment, no impairment charges were recorded during either the three or nine months ended August 31, 2021 or 2020. The Company has financing agreements to finance CMBS that have been purchased as investments by the Financial Services segment.
Details related to Financial Services' CMBS were as follows:
(Dollars in thousands)August 31, 2021November 30, 2020
Carrying value$161,532 164,230 
Outstanding debt, net of debt issuance costs151,124 153,505 
Incurred interest rate3.4 %3.4 %
August 31, 2021
Discount rates at purchase6%—84%
Coupon rates2.0%—5.3%
Distribution datesOctober 2027—December 2028
Stated maturity datesOctober 2050—December 2051
Multifamily
The Company is actively involved, primarily through unconsolidated entities, in the development, construction and property management of multifamily rental properties. The Multifamily segment focuses on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S. markets.
Operations of the Multifamily segment include revenues generated from the sales of land, revenue from construction activities, and management and promote fees generated from joint ventures and equity in earnings (loss) from unconsolidated entities and other gains (which includes sales of buildings), less the cost of sales of land sold, expenses related to construction activities and general and administrative expenses.
Lennar Other
Lennar Other primarily includes strategic investments in technology companies, primarily managed by the Company's LENX subsidiary, and fund interests the Company retained when it sold the Rialto asset and investment management platform. Operations of the Lennar Other segment include operating earnings (loss) consisting of revenues generated primarily from the Company's share of carried interests in the Rialto fund investments retained after the sale of Rialto's asset and investment management platform, along with equity in earnings (loss) from the Rialto fund investments and strategic technology investments, gains (losses) from investments in equity securities and other income (expense), net from the remaining assets related to the Company's former Rialto segment.
During the nine months ended August 31, 2021, the Company completed the sale of the Company's residential solar business to Sunnova Energy International Inc. ("Sunnova") for shares in Sunnova. The Company recorded a gain of $153.0 million upon the closing of the sale. The calculation of the gain included the fair value of the 3.1 million shares in initial consideration received at closing and the fair value of potential shares to be received upon achievement of earnouts. The significant unobservable fair value assumptions used in the calculation were a terminal value multiple of 3 and a 15% discount rate. The fair value of the earnouts was also based on the probability of achieving full or partial earnouts.
The investments in Opendoor Technologies, Inc. ("Opendoor"), Sunnova, Hippo Holdings, Inc. ("Hippo"), SmartRent, Inc. ("SmartRent") and Blend Labs, Inc. ("Blend") are held at market and will therefore change depending on the value of the Company's share holdings in those entities on the last day of each quarter. The following is a detail of Lennar Other realized and unrealized gain (loss):
Three Months EndedNine Months Ended
August 31, August 31,
2021202020212020
Hippo (HIPO) mark to market$324,855 — 324,855 — 
SmartRent (SMRT) mark to market100,793 — 100,793 — 
Opendoor (OPEN) mark to market37,301 — 272,756 — 
Sunnova (NOVA) mark to market23,870 — (14,465)— 
Blend Labs (BLND) mark to market6,852 — 6,852 — 
Gain on sale of solar business1,531 — 153,006 — 
Other realized gain— — 3,580 — 
$495,202 — 847,377 — 
During the nine months ended August 31, 2021, Opendoor, Hippo, SmartRent and Blend began trading and the Company began to mark to market the Company's share holdings in the public entities. The mark to market recognition was due to the entities in which the Company holds the investments going public and the loss of a contractual right to a board seat, where applicable, during the nine months ended August 31, 2021 and the investments now being accounted for as investments in equity securities which are held at fair value and the changes in fair value are recognized through earnings. As of November 30, 2020, the investments were included in the Company's investments in unconsolidated entities and were accounted for using the equity method. In addition, as previously noted, Doma Holdings, Inc. ("Doma") went public during the three months ended August 31, 2021. Doma is an investment that continues to be accounted for under the equity method due to the Company's significant ownership interest which allows the Company to exercise significant influence. As of August 31, 2021, the Company owns approximately 25% of Doma and the carrying amount of the Company's investment is $62.4 million.