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Financial Instruments and Fair Value Disclosures (Tables)

9 Months Ended

Aug. 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 August 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.

									August 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						$	51,330					51,330						45,636						45,647
Investments held-to-maturity			Level 3						140,967						139,993						143,251						143,208
LIABILITIES
Homebuilding senior notes and other debts payable, net			Level 2						$	3,320,119					3,271,836						4,047,294						3,993,242
Financial Services notes and other debts payable, net			Level 2						1,154,163						1,154,797						2,135,093						2,135,797
Multifamily notes payable, net			Level 2						3,477						3,477						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)									August 31, 2023						November 30, 2022
Financial Services Assets:
Residential loans held-for-sale			Level 2						$	1,250,478					1,750,712
LMF Commercial loans held-for-sale			Level 3						37,295						25,599
Mortgage servicing rights			Level 3						3,416						3,463
Forward options			Level 1						5,714						9,473
Lennar Other Assets:
Investments in equity securities			Level 1						$	211,898					212,981
Investments available-for-sale			Level 3						37,114						35,482

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

			August 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			$	1,267,604											(17,126)						1,734,480												16,233
LMF Commercial loans held-for-sale			37,842												(547)						24,000												1,599

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

			August 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 August 31, 2023						As of November 30, 2022
Unobservable inputs
Mortgage prepayment rate			8%						8%
Discount rate			13%						13%
Delinquency rate			10%						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:

			Nine Months Ended
			August 31,
			2023												2022
Unobservable inputs			Range
Average selling price			$371,000			—			850,000						750,000
Absorption rate per quarter (homes)			3			—			26						2
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)			2023						2022						2023						2022
Changes in fair value included in Financial Services revenues:
Loans held-for-sale			$	(9,795)					(14,319)						(33,358)						(41,356)
Mortgage loan commitments			18,139						(7,958)						(16,922)						18,597
Forward contracts			(9,379)						42,781						63,323						34,291
Forward options			(485)						(6)						(1,437)						(6)
Changes in fair value included in Lennar Other unrealized losses from technology investments:
Investments in equity securities			$	(15,713)					(85,839)						(14,170)						(558,974)
Changes in fair value included in other comprehensive income, net of tax:
Lennar Other investments available-for-sale			$	208					342						1,632						1,146

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
			August 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			$	3,398					22,754						3,221						84,205
Purchases/loan originations			34						161,308						93						109,850
Sales/loan originations sold, including those not settled			—						(100,562)						—						(188,266)
Disposals/settlements			(94)						(45,667)						(54)						—
Changes in fair value (1)			78						(535)						96						693
Interest and principal paydowns			—						(3)						—						(35)
Ending balance			$	3,416					37,295						3,356						6,447

			Nine Months Ended
			August 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			155						325,378						275						518,345
Sales/loan originations sold, including those not settled			—						(265,864)						—						(511,733)
Disposals/settlements			(237)						(45,667)						(320)						—
Changes in fair value (1)			35						(547)						909						247
Interest and principal paydowns			—						(1,604)						—						(480)
Ending balance			$	3,416					37,295						3,356						6,447

(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,
									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						$	67,006					57,801						(9,205)						21,268						17,034						(4,234)
Land and land under development (2)			Level 3						26,740						24,612						(2,128)						100,043						93,095						(6,948)
Investments in unconsolidated entities (3)			Level 3						—						—						—						1,453						—						(1,453)

									Nine Months Ended
									August 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						$	250,822					216,703						(34,119)						55,292						48,075						(7,217)
Land and land under development (2)			Level 3						69,605						48,315						(21,290)						129,580						111,003						(18,577)
Investments in unconsolidated entities (3)			Level 3						78,834						37,792						(41,042)						1,453						—						(1,453)

(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 nine months ended August 31, 2023, total losses, net, for land and land under development included $1.6 million and $18.7 million, respectively, of deposit and pre-acquisition cost write-offs.

(3)Valuation adjustments related to investments in unconsolidated entities were primarily included in Homebuilding other income (expense), net in the Company's condensed consolidated statements of operations and comprehensive income for the three and nine months ended August 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 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, 2023			1,247						21																		6																		$	53,211					$	18,844
August 31, 2022			1,182						5																		1																		8,815						2,710

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