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Operating And Reporting Segments (Tables) | 12 Months Ended
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Nov. 30, 2021
Segment Reporting [Abstract] |
Schedule of Segment Reporting Information | The assets and liabilities related to the Company’s segments were as follows:
(In thousands) | November 30, 2021
Assets: | Homebuilding |  | Financial Services |  | Multifamily |  | Lennar Other |  | Total
Cash and cash equivalents | $ | 2,735,213 |  |  | 167,021 |  |  | 16,850 |  |  | 2,660 |  |  | 2,921,744 |
Restricted cash | 21,927 |  |  | 12,012 |  |  | — |  |  | — |  |  | 33,939 |
Receivables, net (1) | 490,278 |  |  | 708,165 |  |  | 98,405 |  |  | — |  |  | 1,296,848 |
Inventories | 18,715,304 |  |  | — |  |  | 454,093 |  |  | — |  |  | 19,169,397 |
Loans held-for-sale (2) | — |  |  | 1,636,351 |  |  | — |  |  | — |  |  | 1,636,351 |
Investments in equity securities (3) |  |  |  |  |  |  | 1,006,599 |  |  | 1,006,599 |
Investments available-for-sale (4) | — |  |  | — |  |  | — |  |  | 41,654 |  |  | 41,654 |
Loans held-for-investments, net | — |  |  | 44,582 |  |  | — |  |  | — |  |  | 44,582 |
Investments held-to-maturity | — |  |  | 157,808 |  |  | — |  |  | — |  |  | 157,808 |
Investments in unconsolidated entities | 972,084 |  |  | — |  |  | 654,029 |  |  | 346,270 |  |  | 1,972,383 |
Goodwill | 3,442,359 |  |  | 189,699 |  |  | — |  |  | — |  |  | 3,632,058 |
Other assets | 1,090,654 |  |  | 48,729 |  |  | 88,370 |  |  | 66,662 |  |  | 1,294,415 |
| $ | 27,467,819 |  |  | 2,964,367 |  |  | 1,311,747 |  |  | 1,463,845 |  |  | 33,207,778 |
Liabilities: |  |  |  |  |  |  |  |  |
Notes and other debts payable, net | $ | 4,652,338 |  |  | 1,726,026 |  |  | — |  |  | — |  |  | 6,378,364 |
Accounts payable and other liabilities | 5,217,904 |  |  | 180,317 |  |  | 288,930 |  |  | 145,981 |  |  | 5,833,132 |
| $ | 9,870,242 |  |  | 1,906,343 |  |  | 288,930 |  |  | 145,981 |  |  | 12,211,496 |
(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-investments, 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 |
Accounts payable and 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 as of November 30, 2021 and November 30, 2020, respectively. (2)Loans held-for-sale related to unsold residential and commercial loans carried at fair value. (3)Investments in equity securities include investments of $100.1 million and $68.8 million without readily available fair values as of November 30, 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 consolidated balance sheets. Financial information relating to the Company’s segments was as follows:
| Year ended November 30, 2021
(In thousands) | Homebuilding |  | Financial Services |  | Multifamily |  | Lennar Other |  | Corporate and unallocated (2) |  | Total
Revenues | $ | 25,545,242 |  |  | 898,745 |  |  | 665,232 |  |  | 21,457 |  |  | — |  |  | 27,130,676 |
Operating earnings | 5,031,762 |  |  | 491,014 |  |  | 21,453 |  |  | 733,035 |  |  | — |  |  | 6,277,264 |
Corporate general and administrative expenses | — |  |  | — |  |  | — |  |  | — |  |  | (398,381) |  |  | (398,381) |
Charitable foundation contribution | — |  |  | — |  |  | — |  |  | — |  |  | (59,825) |  |  | (59,825) |
Earnings before income taxes | 5,031,762 |  |  | 491,014 |  |  | 21,453 |  |  | 733,035 |  |  | (458,206) |  |  | 5,819,058 |
| Year ended November 30, 2020
(In thousands) | Homebuilding |  | Financial Services |  | Multifamily |  | Lennar Other (1) |  | Corporate and unallocated (2) |  | Total
Revenues | $ | 20,981,136 |  |  | 890,311 |  |  | 576,328 |  |  | 41,079 |  |  | — |  |  | 22,488,854 |
Operating earnings (loss) | 2,988,907 |  |  | 480,952 |  |  | 22,681 |  |  | (10,334) |  |  | — |  |  | 3,482,206 |
Corporate general and administrative expenses | — |  |  | — |  |  | — |  |  | — |  |  | (333,446) |  |  | (333,446) |
Charitable foundation contribution | — |  |  | — |  |  | — |  |  | — |  |  | (24,972) |  |  | (24,972) |
Earnings (loss) before income taxes | 2,988,907 |  |  | 480,952 |  |  | 22,681 |  |  | (10,334) |  |  | (358,418) |  |  | 3,123,788 |
| Year ended November 30, 2019
(In thousands) | Homebuilding |  | Financial Services |  | Multifamily |  | Lennar Other |  | Corporate and unallocated (2) |  | Total
Revenues | $ | 20,793,216 |  |  | 824,810 |  |  | 604,700 |  |  | 36,835 |  |  | — |  |  | 22,259,561 |
Operating earnings | 2,502,905 |  |  | 224,642 |  |  | 16,390 |  |  | 31,469 |  |  | — |  |  | 2,775,406 |
Corporate general and administrative expenses | — |  |  | — |  |  | — |  |  | — |  |  | (321,188) |  |  | (321,188) |
Charitable foundation contribution | — |  |  | — |  |  | — |  |  | — |  |  | (19,926) |  |  | (19,926) |
Earnings before income taxes | 2,502,905 |  |  | 224,642 |  |  | 16,390 |  |  | 31,469 |  |  | (341,114) |  |  | 2,434,292 |
(1)Operating loss for Lennar Other for the year ended November 30, 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. (2)Corporate and unallocated expenses primarily represent costs of operations at the Company's corporate headquarters in Miami. These operations include the Company's executive offices, information technology, treasury, corporate accounting and tax, legal, internal audit and human resources. Also included are property expenses related to the leases of corporate offices, data processing, general corporate expenses and charitable foundation contribution to the Lennar Foundation. The assets related to the Company's homebuilding segments were as follows:
(In thousands) | East |  | Central |  | Texas |  | West |  | Other |  | Corporate and Unallocated |  | Total Homebuilding
Balance at November 30, 2021 | $ | 5,854,057 |  |  | 3,782,847 |  |  | 2,801,192 |  |  | 11,171,741 |  |  | 1,443,163 |  |  | 2,414,819 |  |  | 27,467,819 |
Balance at 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:
| Year ended November 30, 2021
(In thousands) | East |  | Central |  | Texas |  | West |  | Other |  | Total Homebuilding
Revenues | $ | 6,870,944 |  |  | 4,826,535 |  |  | 3,241,321 |  |  | 10,563,756 |  |  | 42,686 |  |  | 25,545,242 |
Operating earnings (loss) | 1,455,432 |  |  | 720,419 |  |  | 730,465 |  |  | 2,192,446 |  |  | (67,000) |  |  | 5,031,762 |
Interest expense | 90,314 |  |  | 58,899 |  |  | 28,764 |  |  | 176,633 |  |  | 10,763 |  |  | 365,373 |
Depreciation and amortization | 24,531 |  |  | 16,118 |  |  | 9,821 |  |  | 49,691 |  |  | 1,238 |  |  | 101,399 |
Net additions to (disposals of) operating properties and equipment | 219 |  |  | 239 |  |  | (9) |  |  | 26,375 |  |  | 14,950 |  |  | 41,774 |
| Year ended November 30, 2020
(In thousands) | East |  | Central |  | Texas |  | West |  | Other |  | Total Homebuilding
Revenues | $ | 5,715,028 |  |  | 4,093,693 |  |  | 2,709,681 |  |  | 8,437,167 |  |  | 25,567 |  |  | 20,981,136 |
Operating earnings (loss) | 933,297 |  |  | 482,929 |  |  | 421,594 |  |  | 1,241,494 |  |  | (90,407) |  |  | 2,988,907 |
Interest expense | 93,245 |  |  | 58,777 |  |  | 29,901 |  |  | 178,498 |  |  | 13,683 |  |  | 374,104 |
Depreciation and amortization | 21,504 |  |  | 13,659 |  |  | 9,366 |  |  | 50,316 |  |  | 249 |  |  | 95,094 |
Net additions to (disposals of) operating properties and equipment | 955 |  |  | (11,370) |  |  | 712 |  |  | 165,869 |  |  | (32) |  |  | 156,134 |
| Year ended November 30, 2019
(In thousands) | East |  | Central |  | Texas |  | West |  | Other |  | Total Homebuilding
Revenues | $ | 5,717,858 |  |  | 4,120,085 |  |  | 2,578,962 |  |  | 8,227,304 |  |  | 149,007 |  |  | 20,793,216 |
Operating earnings (loss) | 830,619 |  |  | 431,372 |  |  | 285,874 |  |  | 1,050,850 |  |  | (95,810) |  |  | 2,502,905 |
Interest expense | 96,569 |  |  | 64,104 |  |  | 37,144 |  |  | 183,906 |  |  | 13,272 |  |  | 394,995 |
Depreciation and amortization | 20,623 |  |  | 11,356 |  |  | 8,395 |  |  | 45,456 |  |  | 369 |  |  | 86,199 |
Net additions to (disposals of) operating properties and equipment | (31,338) |  |  | 89 |  |  | 950 |  |  | 63,803 |  |  | (1,214) |  |  | 32,290 |
Schedule of Line of Credit Facilities | At November 30, 2021, the Financial Services segment had warehouse facilities, all of which were 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: |
December 2021 (1) | $ | 500,000 |
April 2022 | 700,000 |
July 2022 | 600,000 |
October 2022 | 500,000 |
Total - Residential facilities | $ | 2,300,000 |
LMF Commercial facilities maturing: |
December 2021 (1) | $ | 400,000 |
November 2022 | 100,000 |
July 2023 | 50,000 |
Total - LMF Commercial facilities | $ | 550,000 |
Total | $ | 2,850,000 |
(1)Subsequent to November 30, 2021, the maturity date was extended to December 2022. Borrowings and collateral under the facilities and their prior year predecessors were as follows:
| November 30,
(In thousands) | 2021 |  | 2020
Borrowings under the residential facilities | $ | 1,482,258 |  |  | 1,185,797
Collateral under the residential facilities | 1,539,641 |  |  | 1,231,619
Borrowings under the LMF Commercial facilities | 96,294 |  |  | 124,617
The Company's outstanding letters of credit and surety bonds are described below:
| November 30,
(In thousands) | 2021 |  | 2020
Performance letters of credit | $ | 924,584 |  |  | 752,096 |
Financial letters of credit | 425,843 |  |  | 283,193 |
Surety bonds | 3,553,047 |  |  | 3,087,711 |
Anticipated future costs primarily for site improvements related to performance surety bonds | 1,690,861 |  |  | 1,584,642 |
Schedule Of Lennar Homebuilding Receivables | Balances for the years ended November 30, 2021 and 2020 are noted below:
| November 30,
(In thousands) | 2021 |  | 2020
Accounts receivable | $ | 245,004 |  |  | 133,560 |
Mortgages and notes receivable | 247,805 |  |  | 167,909 |
| 492,809 |  |  | 301,469 |
Allowance for credit losses | (2,531) |  |  | (2,798) |
Receivables, net (1) | $ | 490,278 |  |  | 298,671 |
(1)At November 30, 2021, receivables, net included an $85 million short-term loan due from Upward America that was repaid subsequent to November 30, 2021. LMF Commercial originated commercial loans as follows:
| November 30,
(Dollars in thousands) | 2021 |  | 2020
Originations (1) | $ | 770,107 |  |  | 703,777 |
Sold | $ | 931,023 |  |  | 705,089 |
Securitizations | 6 |  |  | 5 |
(1)During both the year ended November 30, 2021 and 2020 all the commercial loans originated were recorded as loans held-for-sale, which are held at fair value.
Debt Securities, Held-to-maturity | Details related to Financial Services' CMBS were as follows:
(Dollars in thousands) | November 30, 2021 |  | November 30, 2020
Carrying value | $ | 157,808 |  |  | 164,230 |
Outstanding debt, net of debt issuance costs | $ | 147,474 |  |  | 153,505 |
Incurred interest rate | 3.4 | % |  | 3.4 | %
Schedule of Significant Unobservable Inputs Used to Determine Fair Value of Communities | 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 during the years ended November 30, 2021 and 2020:
| Years Ended November 30,
| 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%
| November 30, 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
| November 30, 2021
Unobservable inputs |
Mortgage prepayment rate | 13 | %
Discount rate | 13 | %
Delinquency rate | 4 | %
Unrealized Gain (Loss) on Investments | The following is a detail of Lennar Other realized and unrealized gains (losses):
| Year Ended
| November 30,
(In thousands) | 2021 |  |  |  |
Opendoor (OPEN) mark to market | $ | 239,312 |  |  |  |  |
Hippo (HIPO) mark to market | 207,634 |  |  |  |  |
SmartRent (SMRT) mark to market | 79,483 |  |  |  |  |
Sunnova (NOVA) mark to market | (8,883) |  |  |  |  |
Blend Labs (BLND) mark to market | (6,744) |  |  |  |  |
Gain on sale of solar business | 158,069 |  |  |  |  |
Other realized gains | 11,705 |  |  |  |  |
| $ | 680,576 |  |  |  |  |

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