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Financial Instruments and Fair Value Disclosures (Tables)

3 Months Ended

Feb. 28, 2025

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 28, 2025 and November 30, 2024, 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.

									At February 28, 2025												At November 30, 2024
(In thousands)			Fair Value Hierarchy						Carrying Amount						Fair Value						Carrying Amount						Fair Value
ASSETS
Financial Services:
Loans held-for-investment, net			Level 3						$	52,674					52,674						60,969						61,044
Investments held-to-maturity			Level 3						134,369						136,366						135,646						138,160
LIABILITIES
Homebuilding senior notes and other debt payable, net			Level 2						$	2,211,272					$	2,215,537					2,258,283						2,264,375
Financial Services notes and other debt payable, net			Level 2						1,397,125						1,397,646						1,930,956						1,931,515

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 28, 2025						November 30, 2024
Financial Services Assets:
Residential loans held-for-sale			Level 2						$	1,753,103					2,200,402
LMF Commercial loans held-for-sale			Level 3						82,794						50,316
Mortgage servicing rights			Level 3						3,297						3,463
Forward options			Level 1						2,693						1,458
Lennar Other Assets:
Investments in equity securities			Level 1						$	112,154					204,777
Investments available-for-sale			Level 3						40,401						40,578

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

			February 28, 2025												November 30, 2024
(In thousands)			Aggregate Principal Balance												Change in Fair Value						Aggregate Principal Balance												Change in Fair Value
Residential loans held-for-sale			$	1,785,606											(32,503)						2,263,310												(62,907)
LMF Commercial loans held-for-sale			83,075												(281)						50,020												296

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

			February 28, 2025
			Range
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:

			February 28, 2025						November 30, 2024
Unobservable inputs:
Mortgage prepayment rate			8%						8%
Discount rate			13%						13%
Delinquency rate			14%						12%

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 28, 2025												February 29, 2024
Unobservable inputs			Range												Range
Average selling price (1)			$215,000			—			571,000						178,000			—			197,000
Absorption rate per quarter (homes)			5			—			7						10			—			13
Discount rate			20%												20%

(1)Represents the projected average selling price on future deliveries for communities in which the Company recorded valuation adjustments during both the three months ended February 28, 2025 and 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 28, 2025						February 29, 2024
Changes in fair value included in Financial Services revenues:
Loans held-for-sale			$	30,403					(46,052)
Mortgage loan commitments			33,504						(30,655)
Forward contracts			(48,463)						100,292
Forward options			1,134						(344)
Interest rate swaps			(3,296)						1,554
Changes in fair value included in Lennar Other realized and unrealized gains (losses) from technology investments:
Investments in equity securities			$	(62,503)					(5,137)
Changes in fair value included in other comprehensive income (loss), net of tax:
Lennar Other investments available-for-sale			$	(178)					362

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 28, 2025												February 29, 2024
(In thousands)			Mortgage servicing rights						LMF Commercial loans held-for-sale						Mortgage servicing rights						LMF Commercial loans held-for-sale
Beginning balance			$	3,463					50,316						3,440						13,459
Purchases/loan originations			26						127,965						61						140,825
Sales/loan originations sold, including those not settled			—						(94,887)						—						(26,950)
Disposals/settlements			(97)						—						(26)						—
Changes in fair value (1)			(95)						(281)						—						(2,128)
Interest and principal paydowns			—						(319)						—						191
Ending balance			$	3,297					82,794						3,475						125,397

(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 28, 2025																		February 29, 2024
(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						$	259,540					239,197						(20,343)						71,756						68,017						(3,739)
Land and land under development (2)			Level 3						190						134						(56)						2,870						—						(2,870)
Deposits and pre-acquisition costs on real estate (3)			Level 3						268						—						(268)						—						—						—
Non-financial assets - Multifamily:
Investments in unconsolidated entities (4)			Level 3						$	7,594					—						(7,594)						—						—						—

(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.

(3)Forfeited deposits and write-off of pre-acquisition costs on real estate were included in Homebuilding costs and expenses in the Company's condensed consolidated statements of operations and comprehensive income (loss).

(4)Valuation adjustments related to investments in unconsolidated entities were primarily included in Multifamily other income (expense), net in the Company's condensed consolidated statements of operations and comprehensive income (loss) for the three months ended February 28, 2025.

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 28, 2025			1,584						46																		2																		$	14,934					$	3,834
February 29, 2024			1,227						31																		2																		4,863						1,521

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