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Financial Instruments and Fair Value Disclosure (Tables)

12 Months Ended

Nov. 30, 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 November 30, 2022 and 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.

									November 30,
									2022												2021
			Fair Value						Carrying						Fair						Carrying						Fair
(In thousands)			Hierarchy						Amount						Value						Amount						Value
ASSETS
Financial Services:
Loans held-for-investment, net			Level 3						$	45,636					45,647						44,582						44,594
Investments held-to-maturity			Level 3						143,251						143,208						157,808						184,495
LIABILITIES
Homebuilding senior notes and other debts payable, net			Level 2						$	4,047,294					3,993,242						4,652,338						5,046,721
Financial Services notes and other debts payable, net			Level 2						2,135,093						2,135,797						1,726,026						1,726,860
Multifamily notes payable, net			Level 2						16,749						16,749						—						—

Fair Value Measured on a Recurring Basis

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

									Fair Value at November 30,
(In thousands)			Fair Value Hierarchy						2022						2021
Financial Services Assets:
Residential loans held-for-sale			Level 2						$	1,750,712					1,636,283
LMF Commercial loans held-for-sale			Level 3						25,599						68
Mortgage servicing rights			Level 3						3,463						2,492
Forward options			Level 1						9,473						—
Lennar Other:
Investments in equity securities			Level 1						212,981						906,539
Investments available-for-sale			Level 3						35,482						41,654

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

			November 30,
			2022												2021
(In thousands)			Aggregate Principal Balance												Change in Fair Value						Aggregate Principal Balance												Change in Fair Value
Residential loans held-for-sale			$	1,734,480											16,233						1,586,764												49,519
LMF Commercial loans held-for-sale			24,000												1,599						—												68

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:

			Years Ended November 30,
			2022												2021
(In thousands)			Mortgage servicing rights												LMF Commercial loans held-for-sale						Mortgage servicing rights												LMF Commercial loans held-for-sale
Beginning of year			$	2,492											68						2,113												193,588
Purchases/loan originations			353												740,345						584												774,905
Sales/loan originations sold, including those not settled			—												(715,933)						—												(931,023)
Disposals/settlements (1)			(404)												—						(1,365)												(35,837)
Changes in fair value (2)			1,022												1,599						1,160												(388)
Interest and principal paydowns			—												(480)						—												(1,177)
End of year			$	3,463											25,599						2,492												68

(1)The year ended November 30, 2021 includes $28.5 million of loans sold/paid outside of LMF Commercial’s six securitizations and $7.3 million of loans converted to loans held-for-investment.

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

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:

			Years Ended November 30,
(In thousands)			2022						2021						2020
Changes in fair value included in Financial Services revenues:
Loans held-for-sale			$	(33,287)					(14,449)						21,765
Mortgage loan commitments			43,695						(8,302)						12,774
Forward contracts			(48,790)						11,513						(9,805)
Forward options			(142)						—						—
Changes in fair value included in Lennar Other unrealized gain (loss) from technology investments:
Investments in equity securities			$	(655,094)					510,802						—
Changes in fair value included in other comprehensive income (loss), net of tax:
Lennar Other investments available-for-sale			$	1,464					(536)						(805)

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:

			Years Ended November 30,
			2022												2021
Unobservable inputs			Range
Average selling price (1)			$233,000			—			$753,000						$635,000
Absorption rate per quarter (homes)			2			—			12						11
Discount rate			20%												20%

			November 30, 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

			November 30, 2022
Unobservable inputs
Mortgage prepayment rate			8%
Discount rate			13%
Delinquency rate			7%

Communities Reviewed for Indicators of Impairment and Communities with Valuation Adjustments Needed

aluation adjustments for finished homes and construction in progress were included in Homebuilding costs and expenses in the Company's consolidated statements of operations and comprehensive income (loss) for the years ended November 30, 2022 and 2021. The table below summarizes communities reviewed for indicators of impairment and communities with valuation adjustments recorded:

			At November 30,						Communities with valuation adjustments for the years ended November 30,
			# of communities with potential indicators of impairment						# of communities						Fair Value (in thousands)						Valuation Adjustments (in thousands)
2022			15						9						$	105,042					$	33,563
2021			4						1						5,267						11,849

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

			Years Ended November 30,
									2022																		2021																		2020
(In thousands)			Fair Value Hierarchy						Carrying Value						Fair Value						Total Losses, Net (1)						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 (2)			Level 3						$	347,300					295,663						(51,637)						32,364						16,342						(16,022)						176,637						148,684						(27,953)
Land and land under development (2)			Level 3						183,737						126,135						(57,602)						35,775						26,841						(8,934)						182,137						92,355						(89,782)
Other assets (2)			Level 3						—						—						—						12,764						12,024						(740)						—						—						—
Investments in unconsolidated entities (2)			Level 3						1,454						—						(1,454)						—						—						—						—						—						—

(1)Represents losses due to valuation adjustments and deposit and acore write-offs recorded during the year.

(2)Valuation adjustments for finished homes and construction in progress, and land and land under development were included in Homebuilding costs and expenses. During the year ended November 30, 2022, total losses, net, for land and land underdevelopment

included $47.9 million of deposit and pre-acquisition cost write-offs. Valuation adjustments related to investments in unconsolidated entities were included in equity in earnings (loss) from unconsolidated entities and/or Homebuilding other income (expense), net in the Company's consolidated statements of operations and comprehensive income for the years ended November 30, 2022, 2021 and 2020.

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