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Financial Instruments and Fair Value Disclosures (Tables)

9 Months Ended

Aug. 31, 2022

Fair Value Disclosures [Abstract]

Carrying Amounts And Estimated Fair Value Of Financial Instruments

The following table presents the carrying amounts and estimated fair values of financial instruments held or issued by the Company at August 31, 2022 and November 30, 2021, using available market information and what the Company believes to be appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies might have a material effect on the estimated fair value amounts. The table excludes cash and cash equivalents, restricted cash, receivables, net and accounts payable, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments.

									August 31, 2022												November 30, 2021
(In thousands)			Fair Value Hierarchy						Carrying Amount						Fair Value						Carrying Amount						Fair Value
ASSETS
Financial Services:
Loans held-for-investment, net			Level 3						$	38,939					38,950						44,582						44,594
Investments held-to-maturity			Level 3						151,015						155,830						157,808						184,495
LIABILITIES
Homebuilding senior notes and other debts payable, net			Level 2						$	4,057,496					4,042,848						4,652,338						5,046,721
Financial Services notes and other debts payable, net			Level 2						1,487,913						1,486,170						1,726,026						1,726,860
Multifamily notes payable, net			Level 2						16,683						16,683						—						—

Fair Value Measured On Recurring Basis

The Company’s financial instruments measured at fair value on a recurring basis are summarized below:

			Fair Value Hierarchy						Fair Value at
(In thousands)									August 31, 2022						November 30, 2021
Financial Services Assets:
Residential loans held-for-sale			Level 2						$	1,253,675					1,636,283
LMF Commercial loans held-for-sale			Level 3						6,447						68
Mortgage servicing rights			Level 3						3,356						2,492
Forward options			Level 1						16,004						—
Lennar Other:
Investments in equity securities			Level 1						$	309,037					906,539
Investments available-for-sale			Level 3						35,163						41,654

Residential and LMF Commercial loans held-for-sale in the table above include:

			August 31, 2022												November 30, 2021
(In thousands)			Aggregate Principal Balance												Change in Fair Value						Aggregate Principal Balance												Change in Fair Value
Residential loans held-for-sale			$	1,245,511											8,164						1,586,764												49,519
LMF Commercial loans held-for-sale			6,200												247						—												68

Schedule of Unobservable Inputs Used in Discounted Cash Flow Model to Determine the Fair Value of Communities

			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%

Schedule Of Gains And Losses Of Financial Instruments Measured on a Recurring Basis

The changes in fair values for Level 1 and Level 2 financial instruments measured on a recurring basis are shown below by financial instrument and financial statement line item:

			Three Months Ended												Nine Months Ended
			August 31,												August 31,
(In thousands)			2022						2021						2022						2021
Changes in fair value included in Financial Services revenues:
Loans held-for-sale			$	(14,319)					4,196						(41,356)						(26,156)
Mortgage loan commitments			(7,958)						118						18,597						260
Forward contracts			42,781						1,649						34,291						11,934
Forward options			(6)						—						(6)						—
Changes in fair value included in Lennar Other unrealized gain (loss) from technology investments:
Investments in equity securities			$	(85,839)					493,671						(558,974)						690,791
Changes in fair value included in other comprehensive gain (loss), net of tax:
Lennar Other investments available-for-sale			$	342					131						1,146						(495)

Reconciliation Of Beginning And Ending Balance For The Company's Level 3 Recurring Fair Value Measurements

The following table represents the reconciliation of the beginning and ending balance for the Level 3 recurring fair value measurements in the Company's Financial Services segment:

			Three Months Ended
			August 31,
			2022												2021
(In thousands)			Mortgage servicing rights						LMF Commercial loans held-for-sale						Mortgage servicing rights						LMF Commercial loans held-for-sale
Beginning balance			$	3,221					84,205						2,602						163,920
Purchases/loan originations			93						109,850						56						178,669
Sales/loan originations sold, including those not settled			—						(188,266)						—						(226,357)
Disposals/settlements			(54)						—						(127)						(4,092)
Changes in fair value (1)			96						693						(149)						1,391
Interest and principal paydowns			—						(35)						—						(402)
Ending balance			$	3,356					6,447						2,382						113,129

			Nine Months Ended
			August 31,
			2022												2021
(In thousands)			Mortgage servicing rights						LMF Commercial loans held-for-sale						Mortgage servicing rights						LMF Commercial loans held-for-sale
Beginning balance			2,492						68						2,113						193,588
Purchases/loan originations			275						518,345						499						599,465
Sales/loan originations sold, including those not settled			—						(511,733)						—						(665,062)
Disposals/settlements			(320)						—						(1,222)						(11,392)
Changes in fair value (1)			909						247						992						(2,551)
Interest and principal paydowns			—						(480)						—						(919)
Ending balance			$	3,356					6,447						2,382						113,129

(1)Changes in fair value for LMF Commercial loans held-for-sale and Financial Services mortgage servicing rights are included in Financial Services' revenues.

Fair Value Measurements, Nonrecurring

The assets measured at fair value on a nonrecurring basis are summarized below:

									Three Months Ended
									August 31,
									2022																		2021
(In thousands)			Fair Value Hierarchy						Carrying Value						Fair Value						Total Losses, Net (1)						Carrying Value						Fair Value						Total Losses, Net (1)
Non-financial assets - Homebuilding:
Finished homes and construction in progress			Level 3						$	21,268					17,034						(4,234)						3,968						2,287						(1,681)
Land and land under development			Level 3						100,043						93,095						(6,948)						1,625						862						(763)
Investments in unconsolidated entities			Level 3						1,453						—						(1,453)						—						—						—

									Nine Months Ended
									August 31,
									2022																		2021
(In thousands)			Fair Value Hierarchy						Carrying Value						Fair Value						Total Losses, Net (1)						Carrying Value						Fair Value						Total Losses, Net (1)
Non-financial assets - Homebuilding:
Finished homes and construction in progress			Level 3						$	55,292					48,075						(7,217)						25,752						11,015						(14,737)
Land and land under development			Level 3						129,580						111,003						(18,577)						2,145						862						(1,283)
Investments in unconsolidated entities			Level 3						1,453						—						(1,453)						—						—						—

(1)Valuation adjustments for finished homes and construction in progress, and land and land under development were included in Homebuilding costs and expenses. Valuation adjustments related to investments in unconsolidated entities were included in

homebuilding equity in earnings (loss) from unconsolidated entities and/or Homebuilding other income (expense), net in the Company’s condensed consolidated statements of operations and comprehensive income.The table below summarizes communities reviewed for indicators of impairment and communities with valuation adjustments recorded:

																											Communities with valuation adjustments
At or for the Nine Months Ended			# of active communities						# of communities with potential indicator of impairment																		# of communities																		Fair Value (in thousands)						Valuation Adjustments (in thousands)
August 31, 2022			1,182						5																		1																		$	8,815					$	2,710
August 31, 2021			1,192						8																		1																		17,117						11,849

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