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Financial Instruments and Fair Value Disclosures (Tables)

3 Months Ended

Feb. 29, 2024

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 February 29, 2024 and November 30, 2023, 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.

									February 29, 2024												November 30, 2023
(In thousands)			Fair Value Hierarchy						Carrying Amount						Fair Value						Carrying Amount						Fair Value
ASSETS
Financial Services:
Loans held-for-investment, net			Level 3						$	56,845					56,845						55,463						55,463
Investments held-to-maturity			Level 3						139,706						140,886						140,676						139,396
LIABILITIES
Homebuilding senior notes and other debts payable, net			Level 2						$	2,830,332					2,808,473						2,816,482						2,785,712
Financial Services notes and other debts payable, net			Level 2						1,564,290						1,564,710						2,163,805						2,164,441
Multifamily notes payable, net			Level 2						—						—						3,741						3,741

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)									February 29, 2024						November 30, 2023
Financial Services Assets:
Residential loans held-for-sale			Level 2						$	1,861,318					2,073,350
LMF Commercial loans held-for-sale			Level 3						125,397						13,459
Mortgage servicing rights			Level 3						3,475						3,440
Forward options			Level 1						4,319						5,937
Lennar Other Assets:
Investments in equity securities			Level 1						$	171,137					176,198
Investments available-for-sale			Level 3						38,315						37,953

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

			February 29, 2024												November 30, 2023
(In thousands)			Aggregate Principal Balance												Change in Fair Value						Aggregate Principal Balance												Change in Fair Value
Residential loans held-for-sale			$	1,917,795											(56,477)						2,083,776												(10,426)
LMF Commercial loans held-for-sale			127,525												(2,128)						13,650												(191)

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

			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.

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
(In thousands)			February 29, 2024						February 28, 2023
Changes in fair value included in Financial Services revenues:
Loans held-for-sale			$	(46,052)					(31,462)
Mortgage loan commitments			(30,655)						(48,844)
Forward contracts			101,846						91,509
Forward options			(344)						(852)
Changes in fair value included in Lennar Other unrealized losses from technology investments:
Investments in equity securities			$	(5,137)					(23,954)
Changes in fair value included in other comprehensive income, net of tax:
Lennar Other investments available-for-sale			$	362					851

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
			February 29, 2024												February 28, 2023
(In thousands)			Mortgage servicing rights						LMF Commercial loans held-for-sale						Mortgage servicing rights						LMF Commercial loans held-for-sale
Beginning balance			$	3,440					13,459						3,463						25,599
Purchases/loan originations			61						140,825						51						79,480
Sales/loan originations sold, including those not settled			—						(26,950)						—						(77,200)
Disposals/settlements			(26)						—						(63)						—
Changes in fair value (1)			—						(2,128)						(1)						(445)
Interest and principal paydowns			—						191						—						(1,599)
Ending balance			$	3,475					125,397						3,450						25,835

(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
									February 29, 2024																		February 28, 2023
(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						$	71,756					68,017						(3,739)						164,544						158,237						(6,307)
Land and land under development (2)			Level 3						2,870						—						(2,870)						39,616						23,142						(16,474)
Investments in unconsolidated entities (3)			Level 3						—						—						—						3,065						—						(3,065)

(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 months ended February 29, 2024 and February 28, 2023, total losses, net, for land and land under development included $2.9 million and $14.5 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 months ended February 28, 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 Three Months Ended			# of active communities						# of communities with potential indicator of impairment																		# of communities																		Fair Value (in thousands)						Valuation Adjustments (in thousands)
February 29, 2024			1,227						31																		2																		$	4,863					$	(1,521)
February 28, 2023			1,210						27																		—																		—						—

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