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Operating And Reporting Segments
 12 Months Ended
Nov. 30, 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)November 30, 2021
Assets:HomebuildingFinancial
Services		MultifamilyLennar
Other		Total
Cash and cash equivalents$2,735,213 167,021 16,850 2,660 2,921,744 
Restricted cash21,927 12,012 — — 33,939 
Receivables, net (1)490,278 708,165 98,405 — 1,296,848 
Inventories18,715,304 — 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 entities972,084 — 654,029 346,270 1,972,383 
Goodwill3,442,359 189,699 — — 3,632,058 
Other assets1,090,654 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 liabilities5,217,904 180,317 288,930 145,981 5,833,132 
$9,870,242 1,906,343 288,930 145,981 12,211,496 
(In thousands)November 30, 2020
Assets: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-investments, 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 
Accounts payable and 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 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)HomebuildingFinancial
Services		MultifamilyLennar
Other		Corporate and
unallocated (2)		Total
Revenues$25,545,242 898,745 665,232 21,457 — 27,130,676 
Operating earnings5,031,762 491,014 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 taxes5,031,762 491,014 21,453 733,035 (458,206)5,819,058 
Year ended November 30, 2020
(In thousands)HomebuildingFinancial
Services		MultifamilyLennar
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 taxes2,988,907 480,952 22,681 (10,334)(358,418)3,123,788 
Year ended November 30, 2019
(In thousands)HomebuildingFinancial
Services		MultifamilyLennar
Other		Corporate and
unallocated (2)		Total
Revenues$20,793,216 824,810 604,700 36,835 — 22,259,561 
Operating earnings2,502,905 224,642 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 taxes2,502,905 224,642 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.
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, equity in earnings (loss) from unconsolidated entities and other income (expense), net, less the cost of homes sold and land sold, 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, Tennessee 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 Five Point Holdings, LLC ("FivePoint")
The assets related to the Company's homebuilding segments were as follows:
(In thousands)EastCentralTexasWestOtherCorporate 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, 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:
Year ended November 30, 2021
(In thousands)EastCentralTexasWestOtherTotal
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 expense90,314 58,899 28,764 176,633 10,763 365,373 
Depreciation and amortization24,531 16,118 9,821 49,691 1,238 101,399 
Net additions to (disposals of) operating properties and equipment219 239 (9)26,375 14,950 41,774 
Year ended November 30, 2020
(In thousands)EastCentralTexasWestOtherTotal
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 expense93,245 58,777 29,901 178,498 13,683 374,104 
Depreciation and amortization21,504 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)EastCentralTexasWestOtherTotal 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 expense96,569 64,104 37,144 183,906 13,272 394,995 
Depreciation and amortization20,623 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 
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. The Financial Services segment sells substantially all of the loans it originates within a short period of time in the secondary mortgage market, the majority of which are sold 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. 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 as well as in other states.
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 2022700,000 
July 2022600,000 
October 2022500,000 
Total - Residential facilities$2,300,000 
LMF Commercial facilities maturing:
December 2021 (1)$400,000 
November 2022100,000 
July 202350,000 
Total - LMF Commercial facilities$550,000 
Total$2,850,000 
(1)Subsequent to November 30, 2021, the maturity date was extended to December 2022.
The Financial Services segment uses the residential warehouse 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, which are guaranteed by Lennar Corporation, finance LMF Commercial loan originations and securitization activities and are secured by up to 80% interests in the originated commercial loans financed.
Borrowings and collateral under the facilities and their prior year predecessors were as follows:
November 30,
(In thousands)20212020
Borrowings under the residential facilities$1,482,258 1,185,797
Collateral under the residential facilities1,539,641 1,231,619
Borrowings under the LMF Commercial facilities96,294 124,617
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 consolidated balance sheets.
LMF Commercial - loans held-for-sale
LMF Commercial originated commercial loans as follows:
November 30,
(Dollars in thousands)20212020
Originations (1)$770,107 703,777 
Sold$931,023 705,089 
Securitizations6 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.
Investments held-to-maturity
At November 30, 2021 and 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 the years ended November 30, 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)November 30, 2021November 30, 2020
Carrying value$157,808 164,230 
Outstanding debt, net of debt issuance costs$147,474 153,505 
Incurred interest rate3.4 %3.4 %
November 30, 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 land sales, revenue from construction activities and management fees generated from joint ventures, and equity in earnings from unconsolidated entities, less the cost 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 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 year ended November 30, 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 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. For the years ended November 30, 2020 and 2019, there were no mark to market gains on our strategic investments in technology companies. 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 market207,634 
SmartRent (SMRT) mark to market79,483 
Sunnova (NOVA) mark to market(8,883)
Blend Labs (BLND) mark to market(6,744)
Gain on sale of solar business158,069 
Other realized gains11,705 
$680,576 
During the year ended November 30, 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 year ended November 30, 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, other than SmartRent since the first investment was made in fiscal 2021, 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 third quarter of 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 November 30, 2021, the Company owns approximately 25.0% of Doma and the carrying amount of the Company's investment is $53.7 million.
Each reportable segment follows the same accounting policies described in Note 1—"Summary of Significant Accounting Policies" to the consolidated financial statements. Operational results of each segment are not necessarily indicative of the results that would have occurred had the segment been an independent, stand-alone entity during the periods presented.