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Financial Instruments and Fair Value Disclosure (Tables)

12 Months Ended

Nov. 30, 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 November 30, 2023 and 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.

									November 30,
									2023												2022
			Fair Value						Carrying						Fair						Carrying						Fair
(In thousands)			Hierarchy						Amount						Value						Amount						Value
ASSETS
Financial Services:
Loans held-for-investment, net			Level 3						$	55,463					55,463						45,636						45,647
Investments held-to-maturity			Level 3						140,676						139,396						143,251						143,208
LIABILITIES
Homebuilding senior notes and other debts payable, net			Level 2						$	2,816,482					2,785,712						4,047,294						3,993,242
Financial Services notes and other debts payable, net			Level 2						2,163,805						2,164,441						2,135,093						2,135,797
Multifamily notes payable, net			Level 2						3,741						3,741						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						2023						2022
Financial Services Assets:
Residential loans held-for-sale			Level 2						$	2,073,350					1,750,712
LMF Commercial loans held-for-sale			Level 3						13,459						25,599
Mortgage servicing rights			Level 3						3,440						3,463
Forward options			Level 1						5,937						9,473
Lennar Other Assets:
Investments in equity securities			Level 1						176,198						212,981
Investments available-for-sale			Level 3						37,953						35,482

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

			November 30,
			2023												2022
(In thousands)			Aggregate Principal Balance												Change in Fair Value						Aggregate Principal Balance												Change in Fair Value
Residential loans held-for-sale			$	2,083,776											(10,426)						1,734,480												16,233
LMF Commercial loans held-for-sale			13,650												(191)						24,000												1,599

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:

			Years Ended November 30,
			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			200												466,043						353												740,345
Sales/loan originations sold, including those not settled			—												(430,707)						—												(715,933)
Disposals/settlements			(277)												(45,667)						(404)												—
Changes in fair value (1)			54												(191)						1,022												1,599
Interest and principal paydowns			—												(1,618)						—												(480)
Ending balance			$	3,440											13,459						3,463												25,599

(1)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)			2023						2022						2021
Changes in fair value included in Financial Services revenues:
Loans held-for-sale			$	(26,658)					(33,287)						(14,449)
Mortgage loan commitments			1,016						43,695						(8,302)
Forward contracts			(28,431)						(48,790)						11,513
Forward options			(522)						(142)						—
Changes in fair value included in Lennar Other unrealized gains (losses) from technology investments:
Investments in equity securities			$	(50,162)					(655,094)						510,802
Changes in fair value included in other comprehensive income (loss), net of tax:
Lennar Other investments available-for-sale			$	2,471					1,464						(536)

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,
			2023												2022
Unobservable inputs			Range												Range
Average selling price (1)			$179,000			—			$850,000						$233,000			—			$753,000
Absorption rate per quarter (homes)			3			—			26						2			—			12
Discount rate			20%												20%

			November 30, 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

			November 30, 2023
Unobservable inputs
Mortgage prepayment rate			8%
Discount rate			13%
Delinquency rate			9%

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

The Company's valuation 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, 2023 and 2022. 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)
2023			25						18						$	95,731					$	37,500
2022			15						9						105,042						33,563

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

			Years Ended November 30,
									2023																		2022																		2021
(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						$	458,569					396,795						(61,774)						347,300						295,663						(51,637)						32,364						16,342						(16,022)
Land and land under development (2)			Level 3						72,061						49,539						(22,522)						183,737						126,135						(57,602)						35,775						26,841						(8,934)
Other assets (2)			Level 3						—						—						—						—						—						—						12,764						12,024						(740)
Investments in unconsolidated entities (3)			Level 3						78,834						37,792						(41,042)						1,454						—						(1,454)						—						—						—

(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 years ended November 30, 2023 and 2022, total losses, net, for land and land under development included $19.9 million and $47.9 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 consolidated statements of operations and comprehensive income for the year ended November 30, 2023.

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