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Operating and Reporting Segments (Tables) | 9 Months Ended
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Aug. 31, 2022
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, 2022
Assets: | Homebuilding |  | Financial Services |  | Multifamily |  | Lennar Other |  | Total
Cash and cash equivalents | $ | 1,309,364 |  |  | 143,630 |  |  | 40,870 |  |  | 10,181 |  |  | 1,504,045 |
Restricted cash | 32,575 |  |  | 14,710 |  |  | — |  |  | — |  |  | 47,285 |
Receivables, net (1) | 665,472 |  |  | 606,672 |  |  | 108,313 |  |  | — |  |  | 1,380,457 |
Inventories | 22,842,509 |  |  | — |  |  | 429,923 |  |  | — |  |  | 23,272,432 |
Loans held-for-sale (2) | — |  |  | 1,260,122 |  |  | — |  |  | — |  |  | 1,260,122 |
Investments in equity securities (3) | — |  |  | — |  |  | — |  |  | 487,082 |  |  | 487,082 |
Investments available-for-sale (4) | — |  |  | — |  |  | — |  |  | 35,163 |  |  | 35,163 |
Loans held-for-investment, net | — |  |  | 38,939 |  |  | — |  |  | — |  |  | 38,939 |
Investments held-to-maturity | — |  |  | 151,015 |  |  | — |  |  | — |  |  | 151,015 |
Investments in unconsolidated entities | 1,174,498 |  |  | — |  |  | 631,513 |  |  | 342,636 |  |  | 2,148,647 |
Goodwill | 3,442,359 |  |  | 189,699 |  |  | — |  |  | — |  |  | 3,632,058 |
Other assets | 1,163,519 |  |  | 119,183 |  |  | 57,289 |  |  | 42,641 |  |  | 1,382,632 |
| $ | 30,630,296 |  |  | 2,523,970 |  |  | 1,267,908 |  |  | 917,703 |  |  | 35,339,877 |
Liabilities: |  |  |  |  |  |  |  |  |
Notes and other debts payable, net | $ | 4,057,496 |  |  | 1,487,913 |  |  | 16,683 |  |  | — |  |  | 5,562,092 |
Accounts payable and other liabilities | 6,050,952 |  |  | 187,579 |  |  | 309,365 |  |  | 102,351 |  |  | 6,650,247 |
| $ | 10,108,448 |  |  | 1,675,492 |  |  | 326,048 |  |  | 102,351 |  |  | 12,212,339 |
(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-investment, 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 |
(1)Receivables, net for Financial Services primarily related to loans sold to investors for which the Company had not yet been paid as of August 31, 2022 and November 30, 2021, 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 $178.0 million and $100.1 million without readily available fair values as of August 31, 2022 and November 30, 2021, 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, 2022
(In thousands) | Homebuilding |  | Financial Services |  | Multifamily |  | Lennar Other |  | Corporate and Unallocated |  | Total
Revenue | $ | 8,479,496 |  |  | 202,078 |  |  | 243,056 |  |  | 9,801 |  |  | — |  |  | 8,934,431 |
Operating earnings (loss) (1) | 1,963,224 |  |  | 63,348 |  |  | 48,487 |  |  | (117,980) |  |  | — |  |  | 1,957,079 |
Corporate general and administrative expenses | — |  |  | — |  |  | — |  |  | — |  |  | 115,557 |  |  | 115,557 |
Charitable foundation contribution | — |  |  | — |  |  | — |  |  | — |  |  | 17,248 |  |  | 17,248 |
Earnings (loss) before income taxes | 1,963,224 |  |  | 63,348 |  |  | 48,487 |  |  | (117,980) |  |  | (132,805) |  |  | 1,824,274 |
| Three Months Ended August 31, 2021
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 |
(1) Financial Services operating earnings for the three months ended August 31, 2022, included a $35.5 million one-time charge due to an increase in a litigation accrual related to a court judgment.
| Nine Months Ended August 31, 2022
(In thousands) | Homebuilding |  | Financial Services |  | Multifamily |  | Lennar Other |  | Corporate and Unallocated |  | Total
Revenues | $ | 22,209,683 |  |  | 578,945 |  |  | 686,436 |  |  | 21,579 |  |  | — |  |  | 23,496,643 |
Operating earnings (loss) (1) | 4,953,485 |  |  | 258,074 |  |  | 54,582 |  |  | (629,538) |  |  | — |  |  | 4,636,603 |
Corporate general and administrative expenses | — |  |  | — |  |  | — |  |  | — |  |  | 334,425 |  |  | 334,425 |
Charitable foundation contribution | — |  |  | — |  |  | — |  |  | — |  |  | 46,335 |  |  | 46,335 |
Earnings (loss) before income taxes | 4,953,485 |  |  | 258,074 |  |  | 54,582 |  |  | (629,538) |  |  | (380,760) |  |  | 4,255,843 |
| Nine Months Ended August 31, 2021
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 (loss) before income taxes | 3,275,488 |  |  | 379,610 |  |  | 12,130 |  |  | 909,221 |  |  | (338,196) |  |  | 4,238,253 |
(1)Financial Services operating earnings for the nine months ended August 31, 2022, included a $35.5 million one-time charge due to an increase in a litigation accrual related to a court judgment. 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, 2022 | $ | 7,143,051 |  |  | 4,393,636 |  |  | 3,720,373 |  |  | 12,800,380 |  |  | 1,414,935 |  |  | 1,157,922 |  |  | 30,630,297 |
November 30, 2021 | 5,854,057 |  |  | 3,782,847 |  |  | 2,801,192 |  |  | 11,171,741 |  |  | 1,443,163 |  |  | 2,414,819 |  |  | 27,467,819 |
Financial information relating to the Company’s homebuilding segments was as follows:
| Three Months Ended August 31, 2022
(In thousands) | East |  | Central |  | Texas |  | West |  | Other |  | Total Homebuilding
Revenues | $ | 2,540,285 |  |  | 1,577,544 |  |  | 1,140,556 |  |  | 3,212,169 |  |  | 8,942 |  |  | 8,479,496 |
Operating earnings (loss) | 642,482 |  |  | 272,351 |  |  | 278,814 |  |  | 788,443 |  |  | (18,866) |  |  | 1,963,224 |
| Three Months Ended August 31, 2021
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 |
| Nine Months Ended August 31, 2022
(In thousands) | East |  | Central |  | Texas |  | West |  | Other |  | Total Homebuilding
Revenues | $ | 6,424,922 |  |  | 3,970,805 |  |  | 3,048,676 |  |  | 8,733,429 |  |  | 31,851 |  |  | 22,209,683 |
Operating earnings (loss) | 1,548,296 |  |  | 631,224 |  |  | 722,983 |  |  | 2,077,740 |  |  | (26,758) |  |  | 4,953,485 |
| Nine Months Ended August 31, 2021
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 |
Schedule of Line of Credit Facilities | At August 31, 2022, 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 2022 | $ | 200,000 |
December 2022 | 500,000 |
May 2023 | 200,000 |
August 2023 | 1,000,000 |
Total - Residential facilities | $ | 1,900,000 |
LMF Commercial facilities maturing |
November 2022 | $ | 100,000 |
December 2022 | 400,000 |
July 2023 | 50,000 |
Total - LMF Commercial facilities | $ | 550,000 |
Total | $ | 2,450,000 |
Borrowings and collateral under the facilities and their prior year predecessors were as follows:
(In thousands) | August 31, 2022 |  | November 30, 2021
Borrowings under the residential facilities | $ | 1,289,260 |  |  | 1,482,258 |
Collateral under the residential facilities | 1,343,967 |  |  | 1,539,641 |
Borrowings under the LMF Commercial facilities | 57,740 |  |  | 96,294 |
The Company's outstanding performance letters of credit and surety bonds are disclosed below:
(In thousands) |  | August 31, 2022 |  | November 30, 2021
Performance letters of credit |  | $ | 1,148,595 |  |  | 924,584 |
Financial letters of credit |  | 547,210 |  |  | 425,843 |
Surety bonds |  | 3,894,416 |  |  | 3,553,047 |
Anticipated future costs primarily for site improvements related to performance surety bonds |  | 2,023,081 |  |  | 1,690,861 |
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) | 2022 |  | 2021 |  | 2022 |  | 2021
Originations (1) | $ | 109,850 |  |  | 178,669 |  |  | 518,345 |  |  | 594,667 |
Sold | 188,266 |  |  | 226,357 |  |  | 511,733 |  |  | 665,062 |
Securitizations | 2 |  | 1 |  | 4 |  |  | 4 |
(1)During both the three and nine months ended August 31, 2022 and 2021, 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, 2022 |  | November 30, 2021
Carrying value | $ | 151,015 |  |  | 157,808 |
Outstanding debt, net of debt issuance costs | 140,912 |  |  | 147,474 |
Incurred interest rate | 3.4 | % |  | 3.4 | %
Schedule of Fair Value Inputs for Commercial Mortgage-Backed Securities |
| August 31, 2022
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, 2022 |  | As of November 30, 2021
Mortgage prepayment rate | 8% |  | 13%
Discount rate | 13% |  | 13%
Delinquency rate | 7% |  | 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, |  |  |  |  |  |  |  |
| 2022 |  | 2021 |  |  |  |
Unobservable inputs |  |  |  |  |  |  |
Average selling price | $750,000 |  | $635,000 |  |  |  |  |  |  |  |
Absorption rate per quarter (homes) | 2 |  | 11 |  |  |  |  |  |  |  |
Discount rate | 20% |  | 20% |  |  |  |  |  |
Unrealized Gain (Loss) on Investments | The following is a detail of Lennar Other unrealized gains (losses) from the Company's technology investments:
| Three Months Ended |  | Nine Months Ended
| August 31, |  | August 31,
(In thousands) | 2022 |  | 2021 |  | 2022 |  | 2021
Blend Labs (BLND) mark-to-market | $ | (518) |  |  | 6,852 |  |  | (21,510) |  |  | 6,852 |
Hippo (HIPO) mark-to-market | (32,933) |  |  | 324,855 |  |  | (195,336) |  |  | 324,855 |
Opendoor (OPEN) mark-to-market | (54,391) |  |  | 37,301 |  |  | (218,751) |  |  | 272,756 |
SmartRent (SMRT) mark-to-market | (23,118) |  |  | 100,793 |  |  | (71,431) |  |  | 100,793 |
Sonder (SOND) mark-to-market | (168) |  |  | — |  |  | (2,300) |  |  | — |
Sunnova (NOVA) mark-to-market | 25,289 |  |  | 23,870 |  |  | (49,646) |  |  | (14,465) |
Lennar Other unrealized gains (losses) from technology investments | $ | (85,839) |  |  | 493,671 |  |  | (558,974) |  |  | 690,791 |

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