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Operating And Reporting Segments
 12 Months Ended
Nov. 30, 2023
Segment Reporting [Abstract]  
Operating And Reporting Segments Operating and Reporting Segments
Each reportable segment follows the accounting policies described in Note 1 - "Summary of Significant Accounting Policies" to the consolidated financial statements. Operational results of each segment are not necessarily indicative of the results that would have occurred had the segment been an independent, stand-alone entity during the periods presented.
The Company's homebuilding operations construct and sell homes primarily for first-time, move-up and active adult homebuyers primarily under the Lennar brand name. In addition, the Company's homebuilding operations purchase, develop and sell land to third parties. The Company's chief operating decision makers manage and assess the Company's performance at a regional level. Therefore, the Company performed an assessment of its operating segments in accordance with ASC 280, Segment Reporting, and determined that the following are its operating and reportable segments:
Homebuilding segments: (1) East (2) Central (3) Texas (4) West
(5) Financial Services
(6) Multifamily
(7) Lennar Other
The assets and liabilities related to the Company’s segments were as follows:
(In thousands)November 30, 2023
Assets:HomebuildingFinancial
Services		MultifamilyLennar
Other		Total
Cash and cash equivalents$6,273,724 159,491 39,334 1,948 6,474,497 
Restricted cash13,481 82,960 — — 96,441 
Receivables, net (1)887,992 716,071 92,142 — 1,696,205 
Inventories18,352,735 — 544,935 — 18,897,670 
Loans held-for-sale (2)— 2,086,809 — — 2,086,809 
Investments in equity securities (3)— — — 297,243 297,243 
Investments available-for-sale (4)— — — 37,953 37,953 
Loans held-for-investment, net— 55,463 — — 55,463 
Investments held-to-maturity— 140,676 — — 140,676 
Deposits and pre-acquisition costs on real estate2,002,154 — 32,063 — 2,034,217 
Investments in unconsolidated entities1,143,909 — 599,852 276,244 2,020,005 
Goodwill3,442,359 189,699 — — 3,632,058 
Other assets1,512,038 135,377 73,187 44,464 1,765,066 
$33,628,392 3,566,546 1,381,513 657,852 39,234,303 
Liabilities:
Notes and other debts payable, net$2,816,482 2,163,805 3,741 — 4,984,028 
Accounts payable and other liabilities6,911,512 283,234 274,436 79,127 7,548,309 
$9,727,994 2,447,039 278,177 79,127 12,532,337 
(In thousands)November 30, 2022
Assets:HomebuildingFinancial
Services		MultifamilyLennar
Other		Total
Cash and cash equivalents$4,616,124 139,378 17,827 5,391 4,778,720 
Restricted cash23,046 14,004 — — 37,050 
Receivables, net (1)673,980 826,163 114,134 — 1,614,277 
Inventories19,698,286 — 401,619 — 20,099,905 
Loans held-for-sale (2)— 1,776,311 — — 1,776,311 
Investments in equity securities (3)— — — 391,026 391,026 
Investments available-for-sale (4)— — — 35,482 35,482 
Loans held-for-investment, net— 45,636 — — 45,636 
Investments held-to-maturity— 143,251 — — 143,251 
Deposits and pre-acquisition costs on real estate1,733,725 — 28,823 — 1,762,548 
Investments in unconsolidated entities1,173,164 — 648,126 316,523 2,137,813 
Goodwill3,442,359 189,699 — — 3,632,058 
Other assets1,323,478 119,815 46,808 40,117 1,530,218 
$32,684,162 3,254,257 1,257,337 788,539 37,984,295 
Liabilities:
Notes and other debts payable, net$4,047,294 2,135,093 16,749 — 6,199,136 
Accounts payable and other liabilities6,931,352 218,811 296,735 97,894 7,544,792 
$10,978,646 2,353,904 313,484 97,894 13,743,928 
(1)Receivables, net for Financial Services primarily related to loans sold to investors for which the Company had not yet been paid as of November 30, 2023 and November 30, 2022, 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 $121.0 million and $178.0 million without readily available fair values as of November 30, 2023 and November 30, 2022, 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 consolidated balance sheets.
Financial information relating to the Company’s segments was as follows:
Years Ended November 30,
(In thousands)202320222021
Revenues:
Homebuilding$32,660,987 31,951,335 25,545,242 
Financial Services 976,859 809,680 898,745 
Multifamily (1)573,485 865,603 665,232 
Lennar Other22,035 44,392 21,457 
$34,233,366 33,671,010 27,130,676 
Earnings (loss) before income taxes:
Homebuilding$5,527,707 6,777,317 5,031,762 
Financial Services (2)509,461 383,302 491,014 
Multifamily(50,651)69,493 21,453 
Lennar Other (3)(209,788)(734,649)733,035 
Corporate and Unallocated (4)(574,425)(480,897)(458,206)
$5,202,304 6,014,566 5,819,058 
(1)Revenues for Multifamily for the year ended November 30, 2022 included $237.5 million of land sales to unconsolidated entities.
(2)Financial Services operating earnings for the year ended November 30, 2022, included a $35.5 million one-time charge due to an increase in a litigation accrual related to a court judgement.
(3)Operating loss for Lennar Other for the year ended November 30, 2023 included $50.2 million of mark-to-market unrealized losses on the Company's publicly traded technology investments and a $65.0 million write-off of one of the Company's non-public technology investments. Operating loss for Lennar Other for the year ended November 30, 2022 included $655.1 million of mark-to-market unrealized losses on the Company's publicly traded technology investments. Operating earnings for Lennar Other for the year ended November 30, 2021 included $510.8 million of mark-to-market unrealized gains on the Company's publicly traded technology investments.
(4)Corporate and unallocated expenses primarily represent costs of operations at the Company's corporate headquarters in Miami. These operations include the Company's executive offices, information technology, treasury, corporate accounting and tax, legal, internal audit and human resources. Also included are property expenses related to the leases of corporate offices, data processing, general corporate expenses and charitable foundation contributions to the Lennar Foundation.
Homebuilding Segments
Information about homebuilding activities in states which are not economically similar to other states in the same geographic area is grouped under "Homebuilding Other," which is not considered a reportable segment.
Evaluation of segment performance is based primarily on operating earnings (loss) before income taxes. Operations of the Company’s Homebuilding segments primarily include the construction and sale of single-family attached and detached homes, as well as the purchase, development and sale of residential land directly and through the Company’s unconsolidated entities. Operating earnings (loss) for the Homebuilding segments consist of revenues generated from the sales of homes and land, other revenues from management fees and forfeited deposits, equity in earnings (loss) from unconsolidated entities and other income (expense), net, less the cost of homes sold and land sold, and selling, general and administrative expenses incurred by the segment. Homebuilding Other also includes management of a fund that acquires single-family homes and holds them as rental properties.
The Company’s reportable Homebuilding segments and all other homebuilding operations not required to be reported separately, have homebuilding divisions located in:
East: Alabama, Florida, New Jersey, Pennsylvania and South Carolina
Central: Georgia, Illinois, Indiana, Maryland, Minnesota, North Carolina, Tennessee and Virginia
Texas: Texas
West: Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah and Washington
Other: Urban divisions and other homebuilding related investments primarily in California, including FivePoint Holdings, LLC ("FivePoint")
The assets related to the Company's Homebuilding segments were as follows:
November 30,
(In thousands)20232022
East$7,206,500 6,877,581 
Central3,868,564 4,010,610 
Texas3,337,280 3,742,663 
West 11,298,812 12,182,709 
Other1,511,541 1,382,864 
Corporate and Unallocated 6,405,695 4,487,735 
Total Homebuilding$33,628,392 32,684,162 
Financial information relating to the Company’s homebuilding segments was as follows:
Years Ended November 30,
(In thousands)202320222021
Revenues:
East$9,651,710 9,266,013 6,870,944 
Central6,177,004 5,846,023 4,826,535 
Texas4,707,285 4,227,771 3,241,321 
West 12,086,172 12,571,386 10,563,756 
Other38,816 40,142 42,686 
$32,660,987 31,951,335 25,545,242 
Operating earnings (loss):
East$2,147,330 2,240,256 1,455,432 
Central949,542 889,231 720,419 
Texas788,548 929,237 730,465 
West1,712,966 2,773,597 2,192,446 
Other(70,679)(55,004)(67,000)
$5,527,707 6,777,317 5,031,762 
Interest expense:
East$60,343 78,345 90,314 
Central41,429 54,547 58,899 
Texas29,754 29,442 28,764 
West115,600 140,017 176,633 
Other10,467 10,380 10,763 
$257,593 312,731 365,373 
Depreciation and amortization:
East$36,723 24,888 24,531 
Central23,643 15,219 16,118 
Texas10,227 9,354 9,821 
West62,374 54,055 49,691 
Other286 774 1,238 
$133,253 104,290 101,399 
Net addition to (disposal of) operating properties and equipment:
East$1,024 2,651 219 
Central1,144 363 239 
Texas679 136 (9)
West1,176 1,414 26,375 
Other45,754 6,537 14,950 
$49,777 11,101 41,774 
Financial Services
Operations of the Financial Services segment include mortgage financing, title and closing services primarily for buyers of the Company’s homes. They also include originating and selling into securitizations commercial mortgage loans through its LMF Commercial business. The Financial Services segment sells substantially all of the loans it originates within a short period of time in the secondary mortgage market, the majority of which are sold on a servicing-released, non-recourse basis. After the loans are sold, the Company retains potential liability for possible claims by purchasers that it breached certain limited industry standard representations and warranties in the loan sale agreements. Financial Services’ operating earnings consist of revenues generated primarily from mortgage financing, title and closing services, and property and casualty insurance, less the cost of such services and certain selling, general and administrative expenses incurred by the segment. The Financial Services segment operates generally in the same states as the Company’s homebuilding operations.
At November 30, 2023, the Financial Services segment had warehouse facilities which were all 364-day repurchase facilities and were used to fund residential mortgages or commercial mortgages for LMF Commercial as follows:
Maximum Aggregate Commitment
(In thousands)Committed AmountUncommitted AmountTotal
Residential facilities maturing:
December 2023 (1)$500,000 — 500,000 
April 2024250,000 250,000 500,000 
May 2024 (2)1,500,000 — 1,500,000 
June 2024100,000 400,000 500,000 
September 2024100,000 100,000 200,000 
Total residential facilities$2,450,000 750,000 3,200,000 
LMF commercial facilities maturing:
November 2023 (1)100,000 — 100,000 
December 2023 (3)400,000 — 400,000 
Total LMF commercial facilities$500,000 — 500,000 
Total$3,700,000 
(1)Subsequent to November 30, 2023, the maturity date of December 2023 was extended to March 2024 and the maturity date of November 2023 was extended to January 2024.
(2)In December 2023, the maximum aggregate commitment was reduced to $600 million until maturity in May 2024.
(3)Consists of two commercial facilities each with maximum aggregate commitment amounts of $200 million. Subsequent to November 30, 2023, one of the facility's maturity date was extended to December 2024.
The Financial Services segment uses the residential mortgage loan warehouse facilities to finance its residential lending activities until the mortgage loans are sold to investors and the proceeds are collected. The facilities are non-recourse to the Company and are expected to be renewed or replaced with other facilities when they mature. The LMF Commercial facilities finance LMF Commercial loan originations and securitization activities and were secured by up to 80% interests in the originated commercial loans financed.
Borrowings and collateral under the facilities were as follows:
November 30,
(In thousands)20232022
Borrowings under residential facilities$2,020,187 1,877,411
Collateral under residential facilities2,097,020 1,950,155
Borrowings under LMF Commercial facilities12,525 124,399
If the facilities are not renewed or replaced, the borrowings under the lines of credit will be repaid by selling the mortgage loans held-for-sale to investors and by collecting receivables on loans sold but not yet paid for. Without the facilities, the Financial Services segment would have to use cash from operations and other funding sources to finance its lending activities.
Substantially all of the residential loans the Financial Services segment originates are sold within a short period in the secondary mortgage market on a servicing-released, non-recourse basis. After the loans are sold, the Company retains potential liability for possible claims by purchasers that it breached certain limited industry-standard representations and warranties in the loan sale agreements. Purchasers sometimes try to defray losses by purporting to have found inaccuracies related to sellers’ representations and warranties in particular loan sale agreements. Mortgage investors could seek to have the Company buy back
mortgage loans or compensate them for losses incurred on mortgage loans that the Company has sold based on claims that the Company breached its limited representations or warranties. The Company’s mortgage operations have established accruals for possible losses associated with mortgage loans previously originated and sold to investors. The Company establishes accruals for such possible losses based upon, among other things, an analysis of repurchase requests received, an estimate of potential repurchase claims not yet received and actual past repurchases and losses through the disposition of affected loans as well as
previous settlements. While the Company believes that it has adequately reserved for known losses and projected repurchase requests, given the volatility in the residential mortgage industry and the uncertainty regarding the ultimate resolution of these claims, if either actual repurchases or the losses incurred resolving those repurchases exceed the Company’s expectations, additional recourse expense may be incurred. The provision for loan losses was immaterial for both the years ended November 30, 2023 and 2022. As of November 30, 2023 and 2022, loan origination liabilities were $17.6 million and $11.8 million, respectively, and included in Financial Services’ liabilities in the Company's consolidated balance sheets.
LMF Commercial - loans held-for-sale
LMF Commercial originated commercial loans as follows:
Years Ended November 30,
(Dollars in thousands)20232022
Originations (1)$466,043 740,345 
Sold$430,707 715,933 
Securitizations10 6 
(1)During both years ended November 30, 2023 and 2022, the commercial loans originated were recorded as loans held-for-sale, which are held at fair value.
Investments held-to-maturity
At November 30, 2023 and 2022, the Financial Services segment held commercial mortgage-backed securities ("CMBS"). These securities are classified as held-to-maturity based on the segment's intent and ability to hold the securities until maturity and changes in estimated cash flows are reviewed periodically to determine if an other-than-temporary impairment has occurred. Based on the segment’s assessment, no impairment charges were recorded during the years ended November 30, 2023 and 2022. The Company has financing agreements to finance CMBS that have been purchased as investments by the Financial Services segment.
Details related to Financial Services' CMBS were as follows:
November 30
(Dollars in thousands)20232022
Carrying value$140,676143,251
Outstanding debt, net of debt issuance costs$131,093133,283
Incurred interest rate3.4 %3.4 %
November 30, 2023
Discount rates at purchase6%—84%
Coupon rates2.0%—5.3%
Distribution datesOctober 2027—December 2028
Stated maturity datesOctober 2050—December 2051
Multifamily
The Company is actively involved, primarily through unconsolidated funds and joint ventures, in the development, construction and property management of multifamily rental properties. The Multifamily segment focuses on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S. markets.
The Multifamily Segment (i) manages, and owns interests in, funds that are engaged in the development of multifamily residential communities with the intention of holding the newly constructed and occupied properties as income and fee generating assets, and (ii) manages, and owns interests in, joint ventures that are engaged in the development of multifamily residential communities, in most instances with the intention of selling them when they are built and substantially occupied. The multifamily business is a vertically integrated platform with capabilities spanning development, construction, property management, asset management, and capital markets. Revenues are generated from the sales of land, from construction activities, and management and promote fees generated from joint ventures and other gains (which includes sales of buildings), less the cost of sales of land sold, expenses related to construction activities and general and administrative expenses. Operations of the Multifamily Segment also include equity in earnings (loss) from unconsolidated entities.
Lennar Other
Lennar Other primarily includes strategic investments in technology companies, primarily managed by the Company's LENX subsidiary, and fund interests the Company retained when it sold the Rialto Capital Management ("Rialto") asset and investment management platform. Operations of the Lennar Other segment include operating earnings (loss) consisting of revenues generated primarily from the Company's share of carried interests in the Rialto fund investments, along with equity in earnings (loss) from the Rialto fund investments and technology investments, realized and unrealized gains (losses) from investments in equity securities and other income (expense), net from the remaining assets related to the Company's former Rialto segment.
The Company has investments in Blend Labs, Inc. ("Blend Labs"), Hippo Holdings, Inc. ("Hippo"), Opendoor Technologies, Inc. ("Opendoor"), SmartRent, Inc. ("SmartRent"), Sonder Holdings, Inc. ("Sonder") and Sunnova Energy International, Inc. ("Sunnova"), which are held at market and will therefore change depending on the value of the Company's
shareholdings in those entities on the last day of each quarter. All the investments are accounted for as investments in equity securities which are held at fair value and the changes in fair values are recognized through earnings. The following is a detail of Lennar Other unrealized losses from mark-to-market adjustments on the Company's technology investments:
Years Ended November 30,
(In thousands)20232022
Blend Labs (BLND) $(130)(25,630)
Hippo (HIPO) (19,210)(222,447)
Opendoor (OPEN) 21,762 (265,276)
SmartRent (SMRT) 5,914 (78,177)
Sonder (SOND) (700)(2,339)
Sunnova (NOVA) (57,798)(61,225)
Lennar Other unrealized losses from technology investments$(50,162)(655,094)
Doma Holdings, Inc. ("Doma"), which went public during the year ended November 30, 2021, is an investment that was accounted for under the equity method due to the Company's significant ownership interest of 25% of Doma which allowed the Company to exercise significant influence. As of November 30, 2023, the Company's carrying value in Doma was zero as a result of allocated losses from Doma.
During the year ended November 30, 2023, the Company wrote off $65.0 million relating to one of the Company's non-public technology cost method investments which was recorded in Other income (expense), net and other gains (losses) in the Company’s consolidated statements of operations and comprehensive income (loss).