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Financial Instruments and Fair Value Disclosures (Tables)

6 Months Ended

May 31, 2023

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 May 31, 2023 and November 30, 2022, 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.

									May 31, 2023												November 30, 2022
(In thousands)			Fair Value Hierarchy						Carrying Amount						Fair Value						Carrying Amount						Fair Value
ASSETS
Financial Services:
Loans held-for-investment, net			Level 3						$	36,717					36,717						45,636						45,647
Investments held-to-maturity			Level 3						141,360						141,767						143,251						143,208
LIABILITIES
Homebuilding senior notes and other debts payable, net			Level 2						$	3,852,258					3,813,686						4,047,294						3,993,242
Financial Services notes and other debts payable, net			Level 2						1,157,040						1,157,682						2,135,093						2,135,797
Multifamily notes payable, net			Level 2						16,912						16,912						16,749						16,749

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)									May 31, 2023						November 30, 2022
Financial Services Assets:
Residential loans held-for-sale			Level 2						$	1,152,526					1,750,712
LMF Commercial loans held-for-sale			Level 3						22,754						25,599
Mortgage servicing rights			Level 3						3,398						3,463
Forward options			Level 1						7,261						9,473
Lennar Other Assets:
Investments in equity securities			Level 1						$	227,548					212,981
Investments available-for-sale			Level 3						36,906						35,482

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

			May 31, 2023												November 30, 2022
(In thousands)			Aggregate Principal Balance												Change in Fair Value						Aggregate Principal Balance												Change in Fair Value
Residential loans held-for-sale			$	1,159,857											(7,331)						1,734,480												16,233
LMF Commercial loans held-for-sale			22,765												(11)						24,000												1,599

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

			May 31, 2023
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:

			As of May 31, 2023						As of November 30, 2022
Unobservable inputs
Mortgage prepayment rate			8%						8%
Discount rate			13%						13%
Delinquency rate			9%						7%

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:

			Six Months Ended
			May 31,
			2023												2022
Unobservable inputs			Range
Average selling price			$371,000			—			663,000						635,000
Absorption rate per quarter (homes)			6			—			26						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												Six Months Ended
			May 31,												May 31,
(In thousands)			2023						2022						2023						2022
Changes in fair value included in Financial Services revenues:
Loans held-for-sale			$	7,899					350						(23,563)						(27,037)
Mortgage loan commitments			13,783						12,758						(35,061)						26,555
Forward contracts			(18,807)						(18,480)						72,702						(8,490)
Forward options			(100)						—						(952)						—
Changes in fair value included in Lennar Other unrealized gains (losses) from technology investments:
Investments in equity securities			$	25,497					(77,965)						1,543						(473,135)
Changes in fair value included in other comprehensive income, net of tax:
Lennar Other investments available-for-sale			$	573					62						1,424						804

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

The following table sets forth 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
			May 31,
			2023												2022
(In thousands)			Mortgage servicing rights						LMF Commercial loans held-for-sale						Mortgage servicing rights						LMF Commercial loans held-for-sale
Beginning balance			$	3,450					25,835						2,793						85,795
Purchases/loan originations			69						84,590						99						143,650
Sales/loan originations sold, including those not settled			—						(88,102)						—						(145,385)
Disposals/settlements			(80)						—						(106)						—
Changes in fair value (1)			(41)						434						435						145
Interest and principal paydowns			—						(3)						—						—
Ending balance			$	3,398					22,754						3,221						84,205

			Six Months Ended
			May 31,
			2023												2022
(In thousands)			Mortgage servicing rights						LMF Commercial loans held-for-sale						Mortgage servicing rights						LMF Commercial loans held-for-sale
Beginning balance			$	3,463					25,599						2,492						68
Purchases/loan originations			120						164,070						181						408,495
Sales/loan originations sold, including those not settled			—						(165,302)						—						(323,467)
Disposals/settlements			(143)						—						(265)						—
Changes in fair value (1)			(42)						(11)						813						(445)
Interest and principal paydowns			—						(1,602)						—						(446)
Ending balance			$	3,398					22,754						3,221						84,205

(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
									May 31,
									2023																		2022
(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 (2)			Level 3						$	126,680					108,073						(18,607)						18,665						17,200						(1,465)
Land and land under development (2)			Level 3						3,249						561						(2,688)						8,785						7,149						(1,636)
Investments in unconsolidated entities (3)			Level 3						75,769						37,792						(37,977)						—						—						—

									Six Months Ended
									May 31,
									2023																		2022
(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 (2)			Level 3						$	183,816					158,902						(24,914)						34,023						31,041						(2,982)
Land and land under development (2)			Level 3						42,866						23,704						(19,162)						29,538						17,909						(11,629)
Investments in unconsolidated entities (3)			Level 3						78,834						37,792						(41,042)						—						—						—

(1)Represents losses due to valuation adjustments and deposit and pre-acquisition write-offs recorded during the respective periods.

(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 three and six months ended May 31, 2023, total losses, net, for land and land underdevelopment included $2.7 million and $17.1 million, respectively, of deposit and pre-acquisition cost write-offs.

(3)Valuation adjustments related to investments in unconsolidated entities were included in Homebuilding other income (expense), net in the Company's condensed consolidated statements of operations and comprehensive income for the three and six months ended May 31, 2023.

The table below summarizes communities reviewed for indicators of impairment and communities with valuation adjustments recorded:

																											Communities with valuation adjustments
At or for the Six Months Ended			# of active communities						# of communities with potential indicator of impairment																		# of communities																		Fair Value (in thousands)						Valuation Adjustments (in thousands)
May 31, 2023			1,256						34																		5																		$	42,408					$	12,247
May 31, 2022			1,218						6																		—																		—						—

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