Operating and Reporting Segments (Tables)

6 Months Ended

May 31, 2022

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)	May 31, 2022
Assets:	Homebuilding		Financial Services	Multifamily	Lennar Other	Total
Cash and cash equivalents	$	1,314,741	138,662	61,190	2,151	1,516,744
Restricted cash	28,440		8,225	—	—	36,665
Receivables, net (1)	508,638		492,268	111,109	—	1,112,015
Inventories	22,089,499		—	400,422	—	22,489,921
Loans held-for-sale (2)	—		1,272,111	—	—	1,272,111
Investments in equity securities (3)	—		—	—	576,649	576,649
Investments available-for-sale (4)	—		—	—	34,822	34,822
Loans held-for-investment, net	—		28,231	—	—	28,231
Investments held-to-maturity	—		155,820	—	—	155,820
Investments in unconsolidated entities	1,083,813		—	638,559	325,310	2,047,682
Goodwill	3,442,359		189,699	—	—	3,632,058
Other assets	1,226,192		74,659	66,327	36,306	1,403,484
	$	29,693,682	2,359,675	1,277,607	975,238	34,306,202
Liabilities:
Notes and other debts payable, net	$	4,645,791	1,321,965	16,631	—	5,984,387
Accounts payable and other liabilities	5,967,421		148,723	307,168	108,729	6,532,041
	$	10,613,212	1,470,688	323,799	108,729	12,516,428

(In thousands)	November 30, 2021
Assets:	Homebuilding		Financial Services	Multifamily	Lennar Other	Total
Cash and cash equivalents	$	2,735,213	167,021	16,850	2,660	2,921,744
Restricted cash	21,927		12,012	—	—	33,939
Receivables, net (1)	490,278		708,165	98,405	—	1,296,848
Inventories	18,715,304		—	454,093	—	19,169,397
Loans held-for-sale (2)	—		1,636,351	—	—	1,636,351
Investments in equity securities (3)	—		—	—	1,006,599	1,006,599
Investments available-for-sale (4)	—		—	—	41,654	41,654
Loans held-for-investment, net	—		44,582	—	—	44,582
Investments held-to-maturity	—		157,808	—	—	157,808
Investments in unconsolidated entities	972,084		—	654,029	346,270	1,972,383
Goodwill	3,442,359		189,699	—	—	3,632,058
Other assets	1,090,654		48,729	88,370	66,662	1,294,415
	$	27,467,819	2,964,367	1,311,747	1,463,845	33,207,778
Liabilities:
Notes and other debts payable, net	$	4,652,338	1,726,026	—	—	6,378,364
Accounts payable and other liabilities	5,217,904		180,317	288,930	145,981	5,833,132
	$	9,870,242	1,906,343	288,930	145,981	12,211,496

(1)Receivables, net for Financial Services primarily related to loans sold to investors for which the Company had not yet been paid as of May 31, 2022 and November 30, 2021, 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 $176.2 million and $100.1 million without readily available fair values as of May 31, 2022 and November 30, 2021, 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 May 31, 2022
(In thousands)	Homebuilding		Financial Services	Multifamily	Lennar Other	Corporate and Unallocated	Total
Revenue	$	7,977,982	200,166	176,021	4,527	—	8,358,696
Operating earnings (loss)	1,880,411		103,935	668	(108,424)	—	1,876,590
Corporate general and administrative expenses	—		—	—	—	105,207	105,207
Charitable foundation contribution	—		—	—	—	16,549	16,549
Earnings (loss) before income taxes	1,880,411		103,935	668	(108,424)	(121,756)	1,754,834
	Three Months Ended May 31, 2021
Revenues	$	6,028,041	218,747	177,473	5,984	—	6,430,245
Operating earnings (loss)	1,112,475		121,320	22,397	(54,097)	—	1,202,095
Corporate general and administrative expenses	—		—	—	—	90,717	90,717
Charitable foundation contribution	—		—	—	—	14,493	14,493
Earnings (loss) before income taxes	1,112,475		121,320	22,397	(54,097)	(105,210)	1,096,885

	Six Months Ended May 31, 2022
(In thousands)	Homebuilding		Financial Services	Multifamily	Lennar Other	Corporate and Unallocated	Total
Revenues (1)	$	13,730,187	376,867	443,380	11,778	—	14,562,212
Operating earnings (loss)	2,990,261		194,726	6,095	(511,558)	—	2,679,524
Corporate general and administrative expenses	—		—	—	—	218,868	218,868
Charitable foundation contribution	—		—	—	—	29,087	29,087
Earnings (loss) before income taxes	2,990,261		194,726	6,095	(511,558)	(247,955)	2,431,569
	Six Months Ended May 31, 2021
Revenues	$	10,971,097	462,816	308,916	12,884	—	11,755,713
Operating earnings	1,945,655		267,527	21,523	417,249	—	2,651,954
Corporate general and administrative expenses	—		—	—	—	201,248	201,248
Charitable foundation contribution	—		—	—	—	26,807	26,807
Earnings (loss) before income taxes	1,945,655		267,527	21,523	417,249	(228,055)	2,423,899

(1)Revenues for Multifamily for the six months ended May 31, 2022 includes $147.8 million of land sales to unconsolidated entities.

The assets related to the Company’s homebuilding segments were as follows:

(In thousands)	East		Central	Texas	West	Other	Corporate and Unallocated	Total Homebuilding
May 31, 2022	$	6,968,448	4,266,709	3,576,083	12,276,620	1,486,178	1,119,644	29,693,682
November 30, 2021	5,854,057		3,782,847	2,801,192	11,171,741	1,443,163	2,414,819	27,467,819

Financial information relating to the Company’s homebuilding segments was as follows:

	Three Months Ended May 31, 2022
(In thousands)	East		Central	Texas	West	Other	Total Homebuilding
Revenues	$	2,214,451	1,283,990	1,095,500	3,370,462	13,579	7,977,982
Operating earnings (loss)	553,819		206,795	272,857	847,849	(909)	1,880,411
	Three Months Ended May 31, 2021
Revenues	$	1,567,768	1,097,582	799,259	2,553,771	9,661	6,028,041
Operating earnings (loss)	309,827		159,048	176,057	492,811	(25,268)	1,112,475

	Six Months Ended May 31, 2022
(In thousands)	East		Central	Texas	West	Other	Total Homebuilding
Revenues	$	3,884,637	2,393,262	1,908,119	5,521,260	22,909	13,730,187
Operating earnings (loss)	905,814		358,873	444,169	1,289,297	(7,892)	2,990,261
	Six Months Ended May 31, 2021
Revenues	$	2,923,710	2,026,024	1,443,337	4,563,350	14,676	10,971,097
Operating earnings (loss)	571,910		291,071	305,700	814,517	(37,543)	1,945,655

Schedule of Line of Credit Facilities

At May 31, 2022, the Financial Services warehouse facilities were all 364-day repurchase facilities and were used to fund residential mortgages or commercial mortgages for LMF Commercial as follows:

(In thousands)	Maximum Aggregate Commitment
Residential facilities maturing:
July 2022	$	400,000
October 2022	200,000
December 2022	700,000
May 2023	200,000
Total - Residential facilities	$	1,500,000
LMF Commercial facilities maturing
November 2022	$	100,000
December 2022	400,000
July 2023	50,000
Total - LMF Commercial facilities	$	550,000
Total	$	2,050,000

Borrowings and collateral under the facilities and their prior year predecessors were as follows:

(In thousands)	May 31, 2022		November 30, 2021
Borrowings under the residential facilities	$	1,112,431	1,482,258
Collateral under the residential facilities	1,161,654		1,539,641
Borrowings under the LMF Commercial facilities	63,902		96,294

The Company's outstanding performance letters of credit and surety bonds are described below:

(In thousands)	May 31, 2022		November 30, 2021
Performance letters of credit	$	1,035,057	924,584
Financial letters of credit	580,342		425,843
Surety bonds	3,844,507		3,553,047
Anticipated future costs primarily for site improvements related to performance surety bonds	1,981,973		1,690,861

Schedule of Loan Origination Liabilities

The activity in the Company’s loan origination liabilities was as follows:

	Three Months Ended			Six Months Ended
	May 31,			May 31,
(In thousands)	2022		2021	2022	2021
Loan origination liabilities, beginning of period	$	12,471	8,433	11,670	7,569
Provision for losses	—		1,114	966	2,080
Payments/settlements	(187)		(93)	(352)	(195)
Loan origination liabilities, end of period	$	12,284	9,454	12,284	9,454

Schedule of Loans Held for Sale

LMF Commercial originated commercial loans as follows:

	Three Months Ended			Six Months Ended
	May 31,			May 31,
(Dollars in thousands)	2022		2021	2022	2021
Originations (1)	$	143,650	196,498	408,495	415,998
Sold	145,385		155,740	323,467	438,705
Securitizations	1		1	2	3

(1)During both the three and six months ended May 31, 2022 and 2021 all 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)	May 31, 2022			November 30, 2021
Carrying value	$	155,820		157,808
Outstanding debt, net of debt issuance costs	145,633			147,474
Incurred interest rate	3.4		%	3.4	%

Schedule of Fair Value Inputs for Commercial Mortgage-Backed Securities

	May 31, 2022
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:

Unobservable inputs	As of May 31, 2022	As of November 30, 2021
Mortgage prepayment rate	8%	13%
Discount rate	13%	13%
Delinquency rate	6%	4%

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:

	Six Months Ended
	May 31, 2021
Unobservable inputs
Average selling price	$635,000
Absorption rate per quarter (homes)	11
Discount rate	20%

Unrealized Gain (Loss) on Investments

The following is a detail of Lennar Other unrealized gains (losses) from the Company's technology investments:

	Three Months Ended			Six Months Ended
	May 31,			May 31,
(In thousands)	2022		2021	2022	2021
Blend Labs (BLND) mark-to-market	$	(13,550)	—	(20,992)	—
Hippo (HIPO) mark-to-market	(37,946)		—	(162,403)	—
Opendoor (OPEN) mark-to-market	(20,999)		(234,290)	(164,360)	235,455
SmartRent (SMRT) mark-to-market	(3,950)		—	(48,313)	—
Sonder (SOND) mark-to-market	(1,626)		—	(2,132)	—
Sunnova (NOVA) mark-to-market	106		(38,335)	(74,935)	(38,335)
Lennar Other unrealized gains (losses) from technology investments	$	(77,965)	(272,625)	(473,135)	197,120