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Financial Instruments and Fair Value Disclosures (Tables)

6 Months Ended

May 31, 2026

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 May 31, 2026 and November 30, 2025, 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 May 31, 2026			At November 30, 2025
(In thousands)	Fair Value Hierarchy	Carrying Amount		Fair Value	Carrying Amount	Fair Value
ASSETS
Financial Services:

Loans held-for-sale	Level 3	$	13,830	13,959	15,547	15,547
Investments held-to-maturity	Level 3	129,320		127,778	132,868	132,032



LIABILITIES
Homebuilding senior notes and other debts payable, net	Level 2	$	4,047,487	4,072,154	4,084,686	4,122,169
Financial Services notes and other debts payable, net	Level 2	1,963,746		1,964,163	1,790,309	1,790,789

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)		May 31, 2026		November 30, 2025
Financial Services Assets:
Residential loans held-for-sale	Level 2	$	1,855,423	2,170,677

LMF Commercial loans held-for-sale	Level 3	70,296		26,401



Mortgage servicing rights	Level 3	2,983		3,266
Forward options	Level 1	124		986
Lennar Other Assets:
Investments in equity securities	Level 1	$	89,551	232,372
Investments available-for-sale	Level 3	38,725		39,060

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


	At May 31, 2026		At November 30, 2025

(In thousands)	Aggregate Principal Balance		Change in Fair Value	Aggregate Principal Balance	Change in Fair Value





Residential loans held-for-sale	$	1,917,191	(61,768)	2,206,966	(36,289)
LMF Commercial loans held-for-sale	73,300		(3,004)	26,525	(124)

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


	At May 31, 2026
	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:



	May 31, 2026	November 30, 2025
Unobservable inputs:
Mortgage prepayment rate	9%	9%
Discount rate	13%	13%
Delinquency rate	11%	11%

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,

	2026			2025
Unobservable inputs	Range			Range
Average selling price (1)	$129,000	—	1,015,000	168,000	—	872,000
Absorption rate per quarter (homes)	5	—	19	2	—	7
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 six months ended May 31, 2026 and 2025.

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			Six Months Ended
	May 31,			May 31,
(In thousands)	2026		2025	2026	2025
Changes in fair value included in Financial Services revenues:
Loans held-for-sale	$	(57,891)	(32,753)	(25,489)	(2,350)
Mortgage loan commitments	(16,520)		(22,583)	(9,310)	10,921
Forward contracts	21,558		76,955	8,575	28,492

Interest rate swaps	17,550		3,458	8,278	162
Changes in fair value included in Lennar Other losses from technology investments:
Investments in equity securities	$	(23,252)	(29,440)	(8,414)	(91,943)

Changes in fair value included in other comprehensive income (loss), net of tax:
Lennar Other investments available-for-sale	$	70	(1,332)	(335)	(1,510)

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 May 31,

	2026			2025
(In thousands)	Mortgage servicing rights		LMF Commercial loans held-for-sale		Mortgage servicing rights	LMF Commercial loans held-for-sale
Beginning balance	$	2,783	74,793		3,297	82,794
Purchases/loan originations	191		73,300		251	180,875

Sales/loan originations sold, including those not settled	—		(76,250)		—	(190,936)
Disposals/settlements	(72)		—		(56)	—
Changes in fair value (1)	81		(1,547)		(25)	(466)
Interest and principal paydowns	—		—		—	(64)
Ending balance	$	2,983	70,296		3,467	72,203


	Six Months Ended May 31,

	2026				2025
(In thousands)	Mortgage servicing rights		LMF Commercial loans held-for-sale		Mortgage servicing rights		LMF Commercial loans held-for-sale
Beginning balance	$	3,266	26,401		3,463		50,316
Purchases/loan originations	263		156,350		277		308,840
Sales/loan originations sold, including those not settled	—		(109,575)		—		(285,823)
Disposals/settlements	(123)		—		(153)		—
Changes in fair value (1)	(423)		(3,004)		(120)		(747)
Interest and principal paydowns	—		124		—		(383)
Ending balance	$	2,983	$	70,296	$	3,467	$	72,203

(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 May 31,

		2026				2025
(In thousands)	Fair Value Hierarchy	Carrying Value		Fair Value	Total Losses, Net (1)	Carrying Value	Fair Value	Total Losses, Net (1)



Homebuilding - non-financial assets:
Finished homes and construction in progress (2)	Level 3	$	310,460	242,214	(68,246)	470,734	421,051	(49,683)
Land and land under development (2)	Level 3	549		—	(549)	—	—	—
Deposits and pre-acquisition costs on real estate (3)	Level 3	1,397		—	(1,397)	8,661	—	(8,661)

Financial Services - financial assets:
Loans held-for-sale (4)	Level 3	$	13,830	14,168	(338)	—	—	—
Multifamily - non-financial assets:
Investments in unconsolidated entities (5)	Level 3	$	—	—	—	3,122	—	(3,122)


		Six Months Ended May 31,

		2026				2025
(In thousands)	Fair Value Hierarchy	Carrying Value		Fair Value	Total Losses, Net (1)	Carrying Value	Fair Value	Total Losses, Net (1)



Homebuilding - non-financial assets:
Finished homes and construction in progress (2)	Level 3	$	714,753	613,721	(101,032)	742,658	672,632	(70,026)
Land and land under development (2)	Level 3	549		—	(549)	191	134	(57)
Deposits and pre-acquisition costs on real estate (3)	Level 3	6,738		—	(6,738)	8,928	—	(8,928)

Financial Services - financial assets:
Loans held-for-sale (4)	Level 3	$	14,316	13,830	(486)	—	—	—
Multifamily - non-financial assets:
Investments in unconsolidated entities (5)	Level 3	$	—	—	—	10,716	—	(10,716)

(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 in the Company's condensed consolidated statements of operations and comprehensive income (loss).

(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)Changes in fair value below amortized cost basis are recognized through a valuation allowance, with the adjustment included in Financial Services earnings in the Company's condensed consolidated statements of operations and comprehensive income (loss).

(5)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).

The table below summarizes communities reviewed for indicators of impairment and communities with valuation adjustments recorded:


			Communities with valuation adjustments
At or for the Six Months Ended	# of active communities	# of communities with potential indicator of impairment	# of communities	Fair Value (in thousands)		Valuation Adjustments (in thousands)

May 31, 2026	1,683	151	18	$	143,785	$	36,240
May 31, 2025	1,617	102	14	35,482		17,918

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details