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Operating and Reporting Segments (Tables) | 3 Months Ended
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Feb. 29, 2024
Segment Reporting [Abstract] |
Disclosure Of Financial Information Relating To Company's Operations | The assets and liabilities related to the Company’s segments were as follows:
(In thousands) | February 29, 2024
Assets: | Homebuilding |  | Financial Services |  | Multifamily |  | Lennar Other |  | Total
Cash and cash equivalents | $ | 4,950,128 |  |  | 233,846 |  |  | 27,091 |  |  | 2,700 |  |  | 5,213,765 |
Restricted cash | 12,635 |  |  | 35,068 |  |  | — |  |  | — |  |  | 47,703 |
Receivables, net (1) | 897,371 |  |  | 304,716 |  |  | 82,605 |  |  | — |  |  | 1,284,692 |
Inventory owned and consolidated inventory not owned | 19,374,070 |  |  | — |  |  | 568,689 |  |  | — |  |  | 19,942,759 |
Loans held-for-sale (2) | — |  |  | 1,986,715 |  |  | — |  |  | — |  |  | 1,986,715 |
Investments in equity securities (3) | — |  |  | — |  |  | — |  |  | 294,246 |  |  | 294,246 |
Investments available-for-sale (4) | — |  |  | — |  |  | — |  |  | 38,315 |  |  | 38,315 |
Loans held-for-investment, net | — |  |  | 56,845 |  |  | — |  |  | — |  |  | 56,845 |
Investments held-to-maturity | — |  |  | 139,706 |  |  | — |  |  | — |  |  | 139,706 |
Deposits and pre-acquisition costs on real estate | 2,408,877 |  |  | — |  |  | 31,785 |  |  | — |  |  | 2,440,662 |
Investments in unconsolidated entities | 1,206,564 |  |  | — |  |  | 586,438 |  |  | 289,691 |  |  | 2,082,693 |
Goodwill | 3,442,359 |  |  | 189,699 |  |  | — |  |  | — |  |  | 3,632,058 |
Other assets | 1,473,563 |  |  | 109,847 |  |  | 82,671 |  |  | 124,959 |  |  | 1,791,040 |
Total assets | $ | 33,765,567 |  |  | 3,056,442 |  |  | 1,379,279 |  |  | 749,911 |  |  | 38,951,199 |
Liabilities: |  |  |  |  |  |  |  |  |
Notes and other debts payable, net | $ | 2,830,332 |  |  | 1,564,290 |  |  | — |  |  | — |  |  | 4,394,622 |
Accounts payable, liabilities related to consolidated inventory not owned and other liabilities | 7,298,615 |  |  | 157,043 |  |  | 249,625 |  |  | 73,364 |  |  | 7,778,647 |
Total liabilities | $ | 10,128,947 |  |  | 1,721,333 |  |  | 249,625 |  |  | 73,364 |  |  | 12,173,269 |
(In thousands) | November 30, 2023
Assets: | Homebuilding |  | Financial Services |  | Multifamily |  | Lennar Other |  | Total
Cash and cash equivalents | $ | 6,273,724 |  |  | 159,491 |  |  | 39,334 |  |  | 1,948 |  |  | 6,474,497 |
Restricted cash | 13,481 |  |  | 82,960 |  |  | — |  |  | — |  |  | 96,441 |
Receivables, net (1) | 887,992 |  |  | 716,071 |  |  | 92,142 |  |  | — |  |  | 1,696,205 |
Inventory owned and consolidated inventory not owned | 18,352,735 |  |  | — |  |  | 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 estate | 2,002,154 |  |  | — |  |  | 32,063 |  |  | — |  |  | 2,034,217 |
Investments in unconsolidated entities | 1,143,909 |  |  | — |  |  | 599,852 |  |  | 276,244 |  |  | 2,020,005 |
Goodwill | 3,442,359 |  |  | 189,699 |  |  | — |  |  | — |  |  | 3,632,058 |
Other assets | 1,512,038 |  |  | 135,377 |  |  | 73,187 |  |  | 44,464 |  |  | 1,765,066 |
Total assets | $ | 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, liabilities related to consolidated inventory not owned and other liabilities | 6,911,512 |  |  | 283,234 |  |  | 274,436 |  |  | 79,127 |  |  | 7,548,309 |
Total liabilities | $ | 9,727,994 |  |  | 2,447,039 |  |  | 278,177 |  |  | 79,127 |  |  | 12,532,337 |
(1)Receivables, net for Financial Services primarily related to loans sold to investors for which the Company had not yet been paid as of February 29, 2024 and November 30, 2023, 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 $123.1 million and $121.0 million without readily available fair values as of February 29, 2024 and November 30, 2023, 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 condensed consolidated balance sheet. Financial information relating to the Company’s segments was as follows:
| Three Months Ended |  |
(In thousands) | February 29, 2024 |  | February 28, 2023 |  |  |  |
Revenues: |  |  |  |  |  |  |
Homebuilding | $ | 6,930,991 |  |  | 6,156,305 |  |  |  |  |
Financial Services | 249,720 |  |  | 182,981 |  |  |  |  |
Multifamily | 129,677 |  |  | 143,523 |  |  |  |  |
Lennar Other | 2,542 |  |  | 7,620 |  |  |  |  |
| $ | 7,312,930 |  |  | 6,490,429 |  |  |  |  |
Earnings (loss) before income taxes: |  |  |  |  |  |  |
Homebuilding | $ | 1,028,796 |  |  | 906,839 |  |  |  |  |
Financial Services | 131,296 |  |  | 78,737 |  |  |  |  |
Multifamily | (15,639) |  |  | (21,601) |  |  |  |  |
Lennar Other | (39,548) |  |  | (39,757) |  |  |  |  |
Corporate and Unallocated (1) | (174,119) |  |  | (139,765) |  |  |  |  |
| $ | 930,786 |  |  | 784,453 |  |  |  |  |
(1)Corporate and unallocated consists primarily of corporate general and administrative expenses and charitable foundation contributions. The assets related to the Company’s homebuilding segments were as follows:
| February 29, 2024 |  | November 30, 2023
(In thousands) |  |  |
East | $ | 6,827,717 |  |  | 6,563,568 |
Central | 4,737,106 |  |  | 4,511,496 |
Texas | 3,632,938 |  |  | 3,337,280 |
West | 11,933,146 |  |  | 11,298,812 |
Other | 1,544,543 |  |  | 1,511,541 |
Corporate and Unallocated | 5,090,117 |  |  | 6,405,695 |
Total Homebuilding | $ | 33,765,567 |  |  | 33,628,392 |
Financial information relating to the Company’s homebuilding segments was as follows:
| Three Months Ended |  |
(In thousands) | February 29, 2024 |  | February 28, 2023 |  |  |  |
Revenues |  |  |  |  |  |  |
East | $ | 1,922,797 |  |  | 1,697,843 |  |  |  |  |
Central | 1,396,455 |  |  | 1,226,141 |  |  |  |  |
Texas | 1,071,786 |  |  | 1,022,052 |  |  |  |  |
West | 2,530,061 |  |  | 2,205,061 |  |  |  |  |
Other | 9,892 |  |  | 5,208 |  |  |  |  |
| $ | 6,930,991 |  |  | 6,156,305 |  |  |  |  |
Operating earnings (loss) |  |  |  |  |  |  |
East | $ | 376,881 |  |  | 398,432 |  |  |  |  |
Central | 161,616 |  |  | 156,286 |  |  |  |  |
Texas | 168,513 |  |  | 125,319 |  |  |  |  |
West | 308,787 |  |  | 230,500 |  |  |  |  |
Other | 12,999 |  |  | (3,698) |  |  |  |  |
| $ | 1,028,796 |  |  | 906,839 |  |  |  |  |
Schedule of Line of Credit Facilities | At February 29, 2024, 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 Amount |  | Uncommitted Amount |  | Total
Residential facilities maturing: |  |  |  |  |
March 2024 (1) | $ | 500,000 |  |  | — |  |  | 500,000 |
April 2024 | 250,000 |  |  | 250,000 |  |  | 500,000 |
May 2024 | 600,000 |  |  | — |  |  | 600,000 |
June 2024 | 100,000 |  |  | 100,000 |  |  | 200,000 |
September 2024 | 100,000 |  |  | 100,000 |  |  | 200,000 |
Total residential facilities | $ | 1,550,000 |  |  | 450,000 |  |  | 2,000,000 |
LMF commercial facilities maturing: |  |  |  |  |
December 2024 | 200,000 |  |  | — |  |  | 200,000 |
January 2025 | 100,000 |  |  | — |  |  | 100,000 |
Total LMF commercial facilities | $ | 300,000 |  |  | — |  |  | 300,000 |
Total |  |  |  |  | $ | 2,300,000 |
(1)Subsequent to February 29, 2024, the maturity date was extended to June 2024. Borrowings and collateral under the facilities were as follows:
(In thousands) | February 29, 2024 |  | November 30, 2023
Borrowings under the residential facilities | $ | 1,344,468 |  |  | 2,020,187 |
Collateral under the residential facilities | 1,395,837 |  |  | 2,097,020 |
Borrowings under the LMF Commercial facilities | 89,555 |  |  | 12,525 |
The maximum available borrowings on the Company's unsecured revolving credit facility (the “Credit Facility”) were as follows:
(In thousands) |  | February 29, 2024
Commitments - maturing in April 2024 |  | $ | 350,000 |
Commitments - maturing in May 2027 |  | 2,225,000 |
Total commitments |  | $ | 2,575,000 |
Accordion feature |  | 425,000 |
Total maximum borrowings capacity |  | $ | 3,000,000 |
The Company's outstanding letters of credit and surety bonds are disclosed below:
(In thousands) |  | February 29, 2024 |  | November 30, 2023
Performance letters of credit |  | $ | 1,526,220 |  |  | 1,404,541 |
Financial letters of credit |  | 476,545 |  |  | 417,976 |
Surety bonds |  | 4,596,432 |  |  | 4,508,428 |
Anticipated future costs primarily for site improvements related to performance surety bonds |  | 2,588,531 |  |  | 2,499,680 |
Schedule of Loans Held for Sale | LMF Commercial originated commercial loans as follows:
| Three Months Ended |  |
(Dollars in thousands) | February 29, 2024 |  | February 28, 2023 |  |  |  |
Originations (1) | $ | 140,825 |  |  | 79,480 |  |  |  |  |
Sold | 26,950 |  |  | 77,200 |  |  |  |  |
Securitizations | 2 |  | 1 |  |  |  |
(1)During both the three months ended February 29, 2024 and February 28, 2023, the commercial loans originated were recorded as loans held-for-sale, which are held at fair value.
Schedule of Commercial Mortgage-Backed Securities | Details related to Financial Services' CMBS were as follows:
(Dollars in thousands) | February 29, 2024 |  | November 30, 2023
Carrying value | $ | 139,706 |  |  | 140,676 |
Outstanding debt, net of debt issuance costs | 130,267 |  |  | 131,093 |
Incurred interest rate | 3.4% |  | 3.4%
Schedule of Fair Value Inputs for Commercial Mortgage-Backed Securities |
| February 29, 2024
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 February 29, 2024 |  | As of November 30, 2023
Unobservable inputs |  |  |
Mortgage prepayment rate | 8% |  | 8%
Discount rate | 13% |  | 13%
Delinquency rate | 9% |  | 9%
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:
| Three Months Ended
| February 29, 2024 |  |
Unobservable inputs | Range |  |
Average selling price (1) | $178,000 | — | 197,000 |  |
Absorption rate per quarter (homes) | 10 | — | 13 |  |
Discount rate | 20% |  |
(1)Represents the projected average selling price on future deliveries for communities in which the Company recorded valuation adjustments during the quarter ended February 29, 2024.
Unrealized Gain (Loss) on Investments | The following is a detail of Lennar Other unrealized gains (losses) from mark-to-market adjustments on the Company's technology investments:
| Three Months Ended |  |
(In thousands) | February 29, 2024 |  | February 28, 2023 |  |  |  |
Blend Labs (BLND) | $ | 2,936 |  |  | 586 |  |  |  |  |
Hippo (HIPO) | 16,449 |  |  | 6,632 |  |  |  |  |
Opendoor (OPEN) | 1,315 |  |  | (7,691) |  |  |  |  |
SmartRent (SMRT) | (1,963) |  |  | 1,305 |  |  |  |  |
Sonder (SOND) | 51 |  |  | (320) |  |  |  |  |
Sunnova (NOVA) | (23,925) |  |  | (24,466) |  |  |  |  |
Lennar Other unrealized losses from technology investments | $ | (5,137) |  |  | (23,954) |  |  |  |  |

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