Document And Entity Information
Document And Entity Information | 3 Months Ended |
Feb. 28, 2021shares | |
Class of Stock [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Feb. 28, 2021 |
Document Transition Report | false |
Entity File Number | 1-11749 |
Entity Registrant Name | LENNAR CORP /NEW/ |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 95-4337490 |
Entity Address, Address Line One | 700 Northwest 107th Avenue |
Entity Address, City or Town | Miami |
Entity Address, State or Province | FL |
Entity Address, Postal Zip Code | 33172 |
City Area Code | 305 |
Local Phone Number | 559-4000 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Current Fiscal Year End Date | --11-30 |
Entity Shell Company | false |
Entity Central Index Key | 0000920760 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Class A Common Stock | |
Class of Stock [Line Items] | |
Title of 12(b) Security | Class A Common Stock, par value $.10 |
Trading Symbol | LEN |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 275,760,461 |
Class B Common Stock | |
Class of Stock [Line Items] | |
Title of 12(b) Security | Class B Common Stock, par value $.10 |
Trading Symbol | LEN.B |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 37,621,152 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 28, 2021 | Nov. 30, 2020 | ||
ASSETS | ||||
Cash and cash equivalents | $ 2,568,799 | $ 2,863,038 | ||
Restricted cash | 26,399 | 69,692 | ||
Receivables, net | 892,460 | 938,079 | ||
Inventories: | ||||
Total inventories | 17,982,473 | 17,175,148 | ||
Investments in unconsolidated entities | 2,097,934 | 2,064,921 | ||
Goodwill | 3,632,058 | 3,632,058 | ||
Other assets | 1,315,791 | 1,343,012 | ||
Total assets | [1] | 30,551,980 | 29,935,177 | |
LIABILITIES AND EQUITY | ||||
Senior notes and other debts payable, net | 6,941,144 | 7,421,583 | ||
Total liabilities | [2] | 11,534,529 | 11,835,776 | |
Stockholders' equity: | ||||
Preferred stock | [2] | 0 | 0 | |
Additional paid-in capital | [2] | 8,724,192 | 8,676,056 | |
Retained earnings | [2] | 11,488,520 | 10,564,994 | |
Treasury stock, at cost; February 28, 2021 - 24,711,432 shares of Class A common stock and 1,822,016 shares of Class B common stock; November 30, 2020 - 23,864,589 shares of Class A common stock and 1,822,016 shares of Class B common stock | [2] | (1,348,710) | (1,279,227) | |
Accumulated other comprehensive loss | [2] | (1,747) | (805) | |
Total stockholders’ equity | [2] | 18,896,246 | 17,994,856 | |
Noncontrolling interests | [2] | 121,205 | 104,545 | |
Total equity | [2] | 19,017,451 | 18,099,401 | |
Total liabilities and equity | [2] | 30,551,980 | 29,935,177 | |
Class A Common Stock | ||||
Stockholders' equity: | ||||
Common stock | [2] | 30,047 | 29,894 | |
Class B Common Stock | ||||
Stockholders' equity: | ||||
Common stock | [2] | 3,944 | 3,944 | |
Homebuilding | ||||
ASSETS | ||||
Cash and cash equivalents | [1] | 2,421,411 | 2,703,986 | |
Restricted cash | [1] | 17,878 | 15,211 | |
Receivables, net | [1] | 300,134 | 298,671 | |
Inventories: | ||||
Finished homes and construction in progress | [1] | 9,320,283 | 8,593,399 | |
Land and land under development | [1] | 7,564,900 | 7,495,262 | |
Consolidated inventory not owned | [1] | 807,759 | 836,567 | |
Total inventories | [1] | 17,692,942 | 16,925,228 | |
Investments in unconsolidated entities | 1,077,353 | 953,177 | [1] | |
Goodwill | [1] | 3,442,359 | 3,442,359 | |
Other assets | 1,162,564 | 1,190,793 | [1] | |
Total assets | [1] | 26,114,641 | 25,529,425 | |
LIABILITIES AND EQUITY | ||||
Accounts payable | 1,037,266 | 1,037,338 | [2] | |
Liabilities related to consolidated inventory not owned | 671,235 | 706,691 | [2] | |
Senior notes and other debts payable, net | [2] | 5,976,168 | 5,955,758 | |
Other liabilities | [2] | 2,459,332 | 2,225,864 | |
Total liabilities | [2] | 10,144,001 | 9,925,651 | |
Financial Services | ||||
ASSETS | ||||
Cash and cash equivalents | 117,856 | 116,171 | ||
Restricted cash | 8,521 | 54,481 | ||
Receivables, net | 495,484 | 552,779 | ||
Inventories: | ||||
Total inventories | 0 | 0 | ||
Investments in unconsolidated entities | 0 | 0 | ||
Goodwill | 189,699 | 189,699 | ||
Other assets | 78,128 | 68,027 | ||
Total assets | [1] | 2,217,551 | 2,708,118 | |
LIABILITIES AND EQUITY | ||||
Senior notes and other debts payable, net | 963,070 | 1,463,919 | ||
Total liabilities | [2] | 1,113,083 | 1,644,248 | |
Multifamily | ||||
ASSETS | ||||
Cash and cash equivalents | 25,644 | 38,963 | ||
Restricted cash | 0 | 0 | ||
Receivables, net | 96,842 | 86,629 | ||
Inventories: | ||||
Total inventories | 289,531 | 249,920 | ||
Investments in unconsolidated entities | 704,964 | 724,647 | ||
Goodwill | 0 | 0 | ||
Other assets | 66,739 | 75,749 | ||
Total assets | [1] | 1,183,720 | 1,175,908 | |
LIABILITIES AND EQUITY | ||||
Senior notes and other debts payable, net | 0 | 0 | ||
Total liabilities | [2] | 235,651 | 252,911 | |
Lennar Other | ||||
ASSETS | ||||
Cash and cash equivalents | 3,888 | 3,918 | ||
Restricted cash | 0 | 0 | ||
Receivables, net | 0 | 0 | ||
Inventories: | ||||
Total inventories | 0 | 0 | ||
Investments in unconsolidated entities | 315,617 | 387,097 | ||
Goodwill | 0 | 0 | ||
Other assets | 8,360 | 8,443 | ||
Total assets | [1] | 1,036,068 | 521,726 | |
LIABILITIES AND EQUITY | ||||
Senior notes and other debts payable, net | 1,906 | 1,906 | ||
Total liabilities | [2] | $ 41,794 | $ 12,966 | |
[1] | Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations ("ASC 810"), the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities ("VIEs") and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations. As of February 28, 2021, total assets include $1.0 billion related to consolidated VIEs of which $39.8 million is included in Homebuilding cash and cash equivalents, $14.2 million in Homebuilding finished homes and construction in progress, $516.9 million in Homebuilding land and land under development, $288.6 million in Homebuilding consolidated inventory not owned, $1.7 million in Homebuilding investments in unconsolidated entities, $145.8 million in Homebuilding other assets and $17.8 million in Multifamily assets. As of November 30, 2020, total assets include $1.1 billion related to consolidated VIEs of which $32.1 million is included in Homebuilding cash and cash equivalents, $0.1 million in Homebuilding receivables, net, $14.2 million in Homebuilding finished homes and construction in progress, $486.8 million in Homebuilding land and land under development, $426.3 million in Homebuilding consolidated inventory not owned, $1.6 million in Homebuilding investments in unconsolidated entities, $120.6 million in Homebuilding other assets and $39.9 million in Multifamily assets. | |||
[2] | Under certain provisions of ASC 810, the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated VIEs and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations. As of February 28, 2021, total liabilities include $417.3 million related to consolidated VIEs as to which there was no recourse against the Company, of which $33.4 million is included in Homebuilding accounts payable, $227.2 million in Homebuilding liabilities related to consolidated inventory not owned, $146.6 million in Homebuilding senior notes and other debts payable, $9.9 million in Homebuilding other liabilities and $0.2 million in Multifamily liabilities. As of November 30, 2020, total liabilities include $528.5 million related to consolidated VIEs as to which there was no recourse against the Company, of which $28.4 million is included in Homebuilding accounts payable, $351.4 million in Homebuilding liabilities related to consolidated inventory not owned, $129.1 million in Homebuilding senior notes and other debt payable, $9.9 million in Homebuilding other liabilities and $9.8 million in Multifamily liabilities. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Feb. 28, 2021 | Nov. 30, 2020 | ||
Total assets | [1] | $ 30,551,980 | $ 29,935,177 | |
Cash and cash equivalents | 2,568,799 | 2,863,038 | ||
Receivables, net | 892,460 | 938,079 | ||
Investments in unconsolidated entities | 2,097,934 | 2,064,921 | ||
Other assets | 1,315,791 | 1,343,012 | ||
Total liabilities | [2] | 11,534,529 | 11,835,776 | |
Senior notes and other debts payable, net | $ 6,941,144 | $ 7,421,583 | ||
Class A Common Stock | ||||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 | ||
Common stock, shares authorized | 400,000,000 | 400,000,000 | ||
Common stock, shares issued | 300,471,893 | 298,942,836 | ||
Treasury stock, shares | 24,711,432 | 23,864,589 | ||
Class B Common Stock | ||||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 | ||
Common stock, shares authorized | 90,000,000 | 90,000,000 | ||
Common stock, shares issued | 39,443,168 | 39,443,168 | ||
Treasury stock, shares | 1,822,016 | 1,822,016 | ||
Homebuilding | ||||
Total assets | [1] | $ 26,114,641 | $ 25,529,425 | |
Cash and cash equivalents | [1] | 2,421,411 | 2,703,986 | |
Receivables, net | [1] | 300,134 | 298,671 | |
Finished homes and construction in progress | [1] | 9,320,283 | 8,593,399 | |
Land and land under development | [1] | 7,564,900 | 7,495,262 | |
Consolidated inventory not owned | [1] | 807,759 | 836,567 | |
Investments in unconsolidated entities | 1,077,353 | 953,177 | [1] | |
Other assets | 1,162,564 | 1,190,793 | [1] | |
Total liabilities | [2] | 10,144,001 | 9,925,651 | |
Accounts payable | 1,037,266 | 1,037,338 | [2] | |
Liabilities related to consolidated inventory not owned | 671,235 | 706,691 | [2] | |
Senior notes and other debts payable, net | [2] | 5,976,168 | 5,955,758 | |
Other liabilities | [2] | 2,459,332 | 2,225,864 | |
Multifamily | ||||
Total assets | [1] | 1,183,720 | 1,175,908 | |
Cash and cash equivalents | 25,644 | 38,963 | ||
Receivables, net | 96,842 | 86,629 | ||
Investments in unconsolidated entities | 704,964 | 724,647 | ||
Other assets | 66,739 | 75,749 | ||
Total liabilities | [2] | 235,651 | 252,911 | |
Senior notes and other debts payable, net | 0 | 0 | ||
Variable Interest Entity, Primary Beneficiary | ||||
Total assets | 1,000,000 | 1,100,000 | ||
Total liabilities | 417,300 | 528,500 | ||
Variable Interest Entity, Primary Beneficiary | Homebuilding | ||||
Cash and cash equivalents | 39,800 | 32,100 | ||
Receivables, net | 100 | |||
Finished homes and construction in progress | 14,200 | 14,200 | ||
Land and land under development | 516,900 | 486,800 | ||
Consolidated inventory not owned | 288,600 | 426,300 | ||
Investments in unconsolidated entities | 1,700 | 1,600 | ||
Other assets | 145,800 | 120,600 | ||
Accounts payable | 33,400 | 28,400 | ||
Liabilities related to consolidated inventory not owned | 227,200 | 351,400 | ||
Senior notes and other debts payable, net | [2] | 146,600 | 129,100 | |
Other liabilities | 9,900 | 9,900 | ||
Variable Interest Entity, Primary Beneficiary | Multifamily | ||||
Total assets | 17,800 | 39,900 | ||
Total liabilities | $ 200 | $ 9,800 | ||
[1] | Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations ("ASC 810"), the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities ("VIEs") and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations. As of February 28, 2021, total assets include $1.0 billion related to consolidated VIEs of which $39.8 million is included in Homebuilding cash and cash equivalents, $14.2 million in Homebuilding finished homes and construction in progress, $516.9 million in Homebuilding land and land under development, $288.6 million in Homebuilding consolidated inventory not owned, $1.7 million in Homebuilding investments in unconsolidated entities, $145.8 million in Homebuilding other assets and $17.8 million in Multifamily assets. As of November 30, 2020, total assets include $1.1 billion related to consolidated VIEs of which $32.1 million is included in Homebuilding cash and cash equivalents, $0.1 million in Homebuilding receivables, net, $14.2 million in Homebuilding finished homes and construction in progress, $486.8 million in Homebuilding land and land under development, $426.3 million in Homebuilding consolidated inventory not owned, $1.6 million in Homebuilding investments in unconsolidated entities, $120.6 million in Homebuilding other assets and $39.9 million in Multifamily assets. | |||
[2] | Under certain provisions of ASC 810, the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated VIEs and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations. As of February 28, 2021, total liabilities include $417.3 million related to consolidated VIEs as to which there was no recourse against the Company, of which $33.4 million is included in Homebuilding accounts payable, $227.2 million in Homebuilding liabilities related to consolidated inventory not owned, $146.6 million in Homebuilding senior notes and other debts payable, $9.9 million in Homebuilding other liabilities and $0.2 million in Multifamily liabilities. As of November 30, 2020, total liabilities include $528.5 million related to consolidated VIEs as to which there was no recourse against the Company, of which $28.4 million is included in Homebuilding accounts payable, $351.4 million in Homebuilding liabilities related to consolidated inventory not owned, $129.1 million in Homebuilding senior notes and other debt payable, $9.9 million in Homebuilding other liabilities and $9.8 million in Multifamily liabilities. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Revenues: | ||
Revenues | $ 5,325,468 | $ 4,505,337 |
Cost and expenses: | ||
Corporate general and administrative | 110,531 | 82,634 |
Charitable foundation contribution | 12,314 | 4,213 |
Total costs and expenses | 4,474,294 | 4,075,919 |
Equity in loss from unconsolidated entities | (7,897) | (2,572) |
Earnings (loss) before income taxes | 1,327,014 | 423,552 |
Provision for income taxes | (310,105) | (32,329) |
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | 1,016,909 | 391,223 |
Less: Net earnings (loss) attributable to noncontrolling interests | 15,540 | (7,229) |
Net earnings attributable to Lennar | 1,001,369 | 398,452 |
Other comprehensive loss, net of tax: | ||
Net unrealized loss on securities available-for-sale | (942) | (46) |
Total other comprehensive loss, net of tax | (942) | (46) |
Total comprehensive income attributable to Lennar | 1,000,427 | 398,406 |
Total comprehensive income (loss) attributable to noncontrolling interests | $ 15,540 | $ (7,229) |
Basic earnings per share (in dollars per share) | $ 3.20 | $ 1.27 |
Diluted earnings per share (in dollars per share) | $ 3.20 | $ 1.27 |
Homebuilding | ||
Revenues: | ||
Revenues | $ 4,943,056 | $ 4,172,116 |
Operating Segments | Homebuilding | ||
Revenues: | ||
Revenues | 4,943,056 | 4,172,116 |
Cost and expenses: | ||
Cost and expenses | 4,118,286 | 3,697,806 |
Corporate general and administrative | 0 | 0 |
Charitable foundation contribution | 0 | 0 |
Equity in loss from unconsolidated entities | (4,565) | (4,546) |
Homebuilding other income (expense), net | 12,975 | (9,366) |
Earnings (loss) before income taxes | 833,180 | 460,398 |
Operating Segments | Financial Services | ||
Revenues: | ||
Revenues | 244,069 | 198,661 |
Cost and expenses: | ||
Cost and expenses | 97,862 | 151,344 |
Corporate general and administrative | 0 | 0 |
Charitable foundation contribution | 0 | 0 |
Earnings (loss) before income taxes | 146,207 | 47,317 |
Operating Segments | Multifamily | ||
Revenues: | ||
Revenues | 131,443 | 132,617 |
Cost and expenses: | ||
Cost and expenses | 131,049 | 137,348 |
Corporate general and administrative | 0 | 0 |
Charitable foundation contribution | 0 | 0 |
Multifamily equity in earnings (loss) from unconsolidated entities and other gain | (1,268) | 6,516 |
Earnings (loss) before income taxes | (874) | 1,785 |
Operating Segments | Lennar Other | ||
Revenues: | ||
Revenues | 6,900 | 1,943 |
Cost and expenses: | ||
Cost and expenses | 4,252 | 2,574 |
Corporate general and administrative | 0 | 0 |
Charitable foundation contribution | 0 | 0 |
Lennar Other unrealized gain | 469,745 | 0 |
Lennar Other equity in earnings (loss) from unconsolidated entities and other income (expense), net | (1,047) | 1,530 |
Earnings (loss) before income taxes | 471,346 | 899 |
Corporate and Unallocated | ||
Revenues: | ||
Revenues | 0 | 0 |
Cost and expenses: | ||
Corporate general and administrative | 110,531 | 82,634 |
Charitable foundation contribution | 12,314 | 4,213 |
Earnings (loss) before income taxes | $ (122,845) | $ (86,847) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | ||||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2021 | Nov. 30, 2020 | ||
Cash flows from operating activities: | |||||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | $ 1,016,909 | $ 391,223 | |||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||
Depreciation and amortization | 22,325 | 20,414 | |||
Amortization of discount/premium and accretion on debt, net | (2,361) | (6,943) | |||
Equity in loss from unconsolidated entities | 7,897 | 2,572 | |||
Distributions of earnings from unconsolidated entities | 4,234 | 36,922 | |||
Share-based compensation expense | 48,818 | 31,855 | |||
Deferred income tax expense | 114,917 | 57,006 | |||
Loans held-for-sale unrealized loss | 35,021 | 7,493 | |||
Gain on sale of other assets, operating properties and equipment and real estate owned | (1,167) | (2,910) | |||
Valuation adjustments and write-offs of option deposits and pre-acquisition costs | 635 | 24,515 | |||
Changes in assets and liabilities: | |||||
Decrease in receivables | 45,649 | 245,694 | |||
Increase in inventories, excluding valuation adjustments and write-offs of option deposits and pre-acquisition costs | (862,120) | (777,012) | |||
Increase in other assets | (100,486) | (121,506) | |||
Decrease in loans held-for-sale | 360,582 | 466,750 | |||
Increase in accounts payable and other liabilities | 183,584 | 11,564 | |||
Net cash provided by operating activities | 385,508 | 382,976 | |||
Cash flows from investing activities: | |||||
Net additions of operating properties and equipment | (9,245) | (17,909) | |||
Proceeds from the sales of operating properties and equipment and other assets | 32,002 | 13,067 | |||
Investments in and contributions to unconsolidated entities | (224,112) | (78,607) | |||
Distributions of capital from unconsolidated entities | 83,241 | 86,324 | |||
Proceeds from sale of commercial mortgage-backed securities bonds | 11,307 | 3,248 | |||
Decrease in Financial Services loans held-for-investment, net | 3,777 | 2,733 | |||
Purchases of investment securities | 0 | (8,107) | |||
Proceeds from maturities/sales of investment securities | 8,994 | 10,753 | |||
Other receipts, net | 684 | 1,677 | |||
Net cash (used in) provided by investing activities | (93,352) | 13,179 | |||
Cash flows from financing activities: | |||||
Principal payments on notes payable and other borrowings | (55,350) | (93,250) | |||
Proceeds from liabilities related to consolidated inventory not owned | 67,432 | 0 | |||
Proceeds from other borrowings | 8,903 | 27,577 | |||
Payments related to other liabilities | 0 | (5,480) | |||
Receipts related to noncontrolling interests | 8,896 | 88,913 | |||
Payments related to noncontrolling interests | (11,397) | (16,734) | |||
Common stock: | |||||
Repurchases | (69,480) | (295,988) | |||
Dividends | (77,843) | (39,240) | |||
Net cash used in financing activities | (629,688) | (789,804) | |||
Net decrease in cash and cash equivalents and restricted cash | (337,532) | (393,649) | |||
Cash and cash equivalents and restricted cash at beginning of period | 2,932,730 | 1,468,691 | |||
Cash and cash equivalents and restricted cash at end of period | 2,595,198 | 1,075,042 | |||
Cash and cash equivalents | $ 2,568,799 | $ 2,863,038 | |||
Restricted cash | 26,399 | 69,692 | |||
Total cash and cash equivalents and restricted cash | 2,595,198 | 1,075,042 | 2,595,198 | 2,932,730 | |
Homebuilding | |||||
Common stock: | |||||
Cash and cash equivalents | [1] | 2,421,411 | 2,703,986 | ||
Restricted cash | [1] | 17,878 | 15,211 | ||
Financial Services | |||||
Common stock: | |||||
Cash and cash equivalents | 117,856 | 116,171 | |||
Restricted cash | 8,521 | 54,481 | |||
Multifamily | |||||
Common stock: | |||||
Cash and cash equivalents | 25,644 | 38,963 | |||
Restricted cash | 0 | 0 | |||
Lennar Other | |||||
Common stock: | |||||
Cash and cash equivalents | 3,888 | 3,918 | |||
Restricted cash | 0 | 0 | |||
Operating Segments | |||||
Common stock: | |||||
Cash and cash equivalents and restricted cash at end of period | 2,595,198 | 1,075,042 | |||
Total cash and cash equivalents and restricted cash | 2,595,198 | 1,075,042 | 2,595,198 | ||
Operating Segments | Homebuilding | |||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||
Equity in loss from unconsolidated entities | 4,565 | 4,546 | |||
Common stock: | |||||
Cash and cash equivalents | 2,421,411 | ||||
Restricted cash | 17,878 | 8,666 | |||
Operating Segments | Financial Services | |||||
Common stock: | |||||
Cash and cash equivalents | 117,856 | ||||
Restricted cash | 8,521 | $ 13,894 | |||
Operating Segments | Multifamily | |||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||
Gain on sale of interest in unconsolidated entity and other Multifamily gain | (19,184) | (4,661) | |||
Common stock: | |||||
Cash and cash equivalents | 25,644 | ||||
Operating Segments | Lennar Other | |||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||
Lennar Other unrealized gain | (469,745) | 0 | |||
Common stock: | |||||
Cash and cash equivalents | $ 3,888 | ||||
Operating Segments | Lennar Homebuilding and Lennar Multifamily | |||||
Homebuilding and Multifamily: | |||||
Purchases of inventories and other assets financed by sellers | 68,978 | 75,365 | |||
Non-cash contributions to unconsolidated entities | 0 | 13,859 | |||
Unsecured Revolving Credit Facility | |||||
Cash flows from financing activities: | |||||
Net borrowings (repayments) under credit facilities | 0 | 300,000 | |||
Warehouse Repurchase Facility | |||||
Cash flows from financing activities: | |||||
Net borrowings (repayments) under credit facilities | $ (500,849) | $ (755,602) | |||
[1] | Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations ("ASC 810"), the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities ("VIEs") and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations. As of February 28, 2021, total assets include $1.0 billion related to consolidated VIEs of which $39.8 million is included in Homebuilding cash and cash equivalents, $14.2 million in Homebuilding finished homes and construction in progress, $516.9 million in Homebuilding land and land under development, $288.6 million in Homebuilding consolidated inventory not owned, $1.7 million in Homebuilding investments in unconsolidated entities, $145.8 million in Homebuilding other assets and $17.8 million in Multifamily assets. As of November 30, 2020, total assets include $1.1 billion related to consolidated VIEs of which $32.1 million is included in Homebuilding cash and cash equivalents, $0.1 million in Homebuilding receivables, net, $14.2 million in Homebuilding finished homes and construction in progress, $486.8 million in Homebuilding land and land under development, $426.3 million in Homebuilding consolidated inventory not owned, $1.6 million in Homebuilding investments in unconsolidated entities, $120.6 million in Homebuilding other assets and $39.9 million in Multifamily assets. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Feb. 28, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Basis of Consolidation The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended November 30, 2020. The basis of consolidation is unchanged from the disclosure in the Company's Notes to Consolidated Financial Statements section in its Form 10-K for the year ended November 30, 2020. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for the fair presentation of the accompanying condensed consolidated financial statements have been made. The Company has historically experienced, and expects to continue to experience, variability in quarterly results. The condensed consolidated statements of operations for the three months ended February 28, 2021 are not necessarily indicative of the results to be expected for the full year. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Cash and Cash Equivalents Homebuilding cash and cash equivalents as of February 28, 2021 and November 30, 2020 included $752.5 million and $314.3 million , respectively, of cash held in escrow for approximately three days. Share-based Payments During the three months ended February 28, 2021 and February 29, 2020, the Company granted employees 1.4 million and 0.9 million nonvested shares, respectively. Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). ASU 2016-13 significantly changes the impairment model for most financial assets and certain other instruments. ASU 2016-13 requires immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, which generally results in earlier recognition of allowances for credit losses on loans and other financial instruments. ASU 2016-13 was effective for the Company's fiscal year beginning December 1, 2020. The adoption of ASU 2016-13 did not have a material impact on the Company's condensed consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Accounting for Goodwill Impairment ("ASU 2017-04"). ASU 2017-04 removes the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. A goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 was effective for the Company’s fiscal year beginning December 1, 2020. The impact of the adoption of ASU 2017-04 did not have a material impact on the Company's consolidated financial statements. New Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes ("ASU 2019-12"). ASU 2019-12 will be effective for the Company’s fiscal year beginning December 1, 2022. The Company is currently evaluating the impact the adoption of ASU 2019-12 will have on the Company's condensed consolidated financial statements. Reclassifications Certain prior year amounts in the condensed consolidated financial statements have been reclassified to conform with the 2021 presentation. The Company reclassed the balance of its investment in Doma, formerly States Title, to which the Company sold the majority of the Financial Services segment's retail title agency business and title insurance underwriter in the first |
Operating and Reporting Segment
Operating and Reporting Segments | 3 Months Ended |
Feb. 28, 2021 | |
Segment Reporting [Abstract] | |
Operating and Reporting Segments | Operating and Reporting Segments The Company's homebuilding operations construct and sell homes primarily for first-time, move-up and active adult homebuyers primarily under the Lennar brand name. In addition, the Company's homebuilding operations purchase, develop and sell land to third parties. The Company's chief operating decision makers manage and assess the Company’s performance at a regional level. Therefore, the Company performed an assessment of its operating segments in accordance with ASC 280, Segment Reporting , and determined that the following are its operating and reportable segments: Homebuilding segments: (1) East (2) Central (3) Texas (4) West (5) Financial Services (6) Multifamily (7) Lennar Other The assets and liabilities related to the Company’s segments were as follows: (In thousands) February 28, 2021 Assets: Homebuilding Financial Multifamily Lennar Total Cash and cash equivalents $ 2,421,411 117,856 25,644 3,888 2,568,799 Restricted cash 17,878 8,521 — — 26,399 Receivables, net (1) 300,134 495,484 96,842 — 892,460 Inventories 17,692,942 — 289,531 — 17,982,473 Loans held-for-sale (2) — 1,094,600 — — 1,094,600 Investments in equity securities (3) — — — 666,956 666,956 Investments available-for-sale (4) — — — 41,247 41,247 Loans held-for-investment, net — 69,973 — — 69,973 Investments held-to-maturity — 163,290 — — 163,290 Investments in unconsolidated entities 1,077,353 — 704,964 315,617 2,097,934 Goodwill 3,442,359 189,699 — — 3,632,058 Other assets 1,162,564 78,128 66,739 8,360 1,315,791 $ 26,114,641 2,217,551 1,183,720 1,036,068 30,551,980 Liabilities: Notes and other debts payable, net $ 5,976,168 963,070 — 1,906 6,941,144 Other liabilities 4,167,833 150,013 235,651 39,888 4,593,385 $ 10,144,001 1,113,083 235,651 41,794 11,534,529 (In thousands) November 30, 2020 Assets: Homebuilding Financial Multifamily Lennar Total Cash and cash equivalents $ 2,703,986 116,171 38,963 3,918 2,863,038 Restricted cash 15,211 54,481 — — 69,692 Receivables, net (1) 298,671 552,779 86,629 — 938,079 Inventories 16,925,228 — 249,920 — 17,175,148 Loans held-for-sale (2) — 1,490,105 — — 1,490,105 Investments in equity securities (3) — — — 68,771 68,771 Investments available-for-sale (4) — — — 53,497 53,497 Loans held-for-investment, net — 72,626 — — 72,626 Investments held-to-maturity — 164,230 — — 164,230 Investments in unconsolidated entities 953,177 — 724,647 387,097 2,064,921 Goodwill 3,442,359 189,699 — — 3,632,058 Other assets 1,190,793 68,027 75,749 8,443 1,343,012 $ 25,529,425 2,708,118 1,175,908 521,726 29,935,177 Liabilities: Notes and other debts payable, net $ 5,955,758 1,463,919 — 1,906 7,421,583 Other liabilities 3,969,893 180,329 252,911 11,060 4,414,193 $ 9,925,651 1,644,248 252,911 12,966 11,835,776 (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 28, 2021 and November 30, 2020, 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 $85.1 million and $61.6 million without readily available fair values as of February 28, 2021 and November 30, 2020, 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 February 28, 2021 (In thousands) Homebuilding Financial Services Multifamily Lennar Other Corporate and Total Revenues $ 4,943,056 244,069 131,443 6,900 — 5,325,468 Operating earnings (loss) 833,180 146,207 (874) 471,346 — 1,449,859 Corporate general and administrative expenses — — — — 110,531 110,531 Charitable foundation contribution — — — — 12,314 12,314 Earnings (loss) before income taxes 833,180 146,207 (874) 471,346 (122,845) 1,327,014 Three Months Ended February 29, 2020 Revenues $ 4,172,116 198,661 132,617 1,943 — 4,505,337 Operating earnings 460,398 47,317 1,785 899 — 510,399 Corporate general and administrative expenses — — — — 82,634 82,634 Charitable foundation contribution — — — — 4,213 4,213 Earnings before income taxes 460,398 47,317 1,785 899 (86,847) 423,552 Homebuilding Segments Information about homebuilding activities in states which are not economically similar to other states in the same geographic area is grouped under "Homebuilding Other," which is not considered a reportable segment. Evaluation of segment performance is based primarily on operating earnings (loss) before income taxes. Operations of the Company’s Homebuilding segments primarily include the construction and sale of single-family attached and detached homes as well as the purchase, development and sale of residential land directly and through the Company’s unconsolidated entities. Operating earnings (loss) for the Homebuilding segments consist of revenues generated from the sales of homes and land, other revenues from management fees and forfeited deposits, equity in earnings (loss) from unconsolidated entities and other income (expense), net, less the cost of homes sold and land sold, and selling, general and administrative expenses incurred by the segment. The Company’s reportable Homebuilding segments and all other homebuilding operations not required to be reported separately have homebuilding divisions located in: East: Florida, New Jersey, Pennsylvania and South Carolina Central: Georgia, Illinois, Indiana, Maryland, Minnesota, North Carolina and Virginia Texas: Texas West: Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah and Washington Other: Urban divisions and other homebuilding related investments primarily in California, including FivePoint Holdings, LLC ("FivePoint") The assets related to the Company’s homebuilding segments were as follows: (In thousands) East Central Texas West Other Corporate and Unallocated Total Homebuilding February 28, 2021 $ 5,540,055 3,561,065 2,353,652 11,101,983 1,314,990 2,242,896 26,114,641 November 30, 2020 5,308,114 3,438,600 2,150,916 10,504,374 1,301,618 2,825,803 25,529,425 Financial information relating to the Company’s homebuilding segments was as follows: Three Months Ended February 28, 2021 (In thousands) East Central Texas West Other Total Homebuilding Revenues $ 1,355,942 928,442 644,078 2,009,579 5,015 4,943,056 Operating earnings (loss) 262,083 132,023 129,643 321,706 (12,275) 833,180 Three Months Ended February 29, 2020 Revenues $ 1,152,332 789,510 473,228 1,748,769 8,277 4,172,116 Operating earnings (loss) 148,754 55,723 53,073 224,907 (22,059) 460,398 Financial Services Operations of the Financial Services segment include primarily mortgage financing, title and closing services primarily for buyers of the Company’s homes. It also includes originating and selling into securitizations commercial mortgage loans through its LMF Commercial business. Financial Services’ operating earnings consist of revenues generated primarily from mortgage financing, title and closing services, and property and casualty insurance, less the cost of such services and certain selling, general and administrative expenses incurred by the segment. The Financial Services segment operates generally in the same states as the Company’s homebuilding operations. At February 28, 2021, 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: March 2021(1) $ 100,000 June 2021 600,000 July 2021 200,000 December 2021 500,000 Total - Residential facilities $ 1,400,000 LMF Commercial facilities maturing November 2021 $ 100,000 December 2021(2) 611,438 Total - LMF Commercial facilities $ 711,438 Total $ 2,111,438 (1) Subsequent to February 28, 2021, the maturity due date was extended to May 2021. (2) Includes $11.4 million warehouse repurchase facility used by LMF Commercial to finance the origination of floating rate accrual loans, which are reported as accrual loans within loans held-for-investment, net. The Financial Services segment uses the residential facilities to finance its residential lending activities until the mortgage loans are sold to investors and the proceeds are collected. The facilities are non-recourse to the Company and are expected to be renewed or replaced with other facilities when they mature. The LMF Commercial facilities finance LMF Commercial loan originations and securitization activities and were secured by up to an 80% interest in the originated commercial loans financed. Borrowings and collateral under the facilities and their prior year predecessors were as follows: (In thousands) February 28, 2021 November 30, 2020 Borrowings under the residential facilities $ 631,784 1,185,797 Collateral under the residential facilities 653,698 1,231,619 Borrowings under the LMF Commercial facilities 178,627 124,617 If the facilities are not renewed or replaced, the borrowings under the lines of credit will be repaid by selling the mortgage loans held-for-sale to investors and by collecting receivables on loans sold but not yet paid for. Without the facilities, the Financial Services segment would have to use cash from operations and other funding sources to finance its lending activities. Substantially all of the residential loans the Financial Services segment originates are sold within a short period in the secondary mortgage market on a servicing released, non-recourse basis. After the loans are sold, the Company retains potential liability for possible claims by purchasers that it breached certain limited industry-standard representations and warranties in the loan sale agreements. Purchasers sometimes try to defray losses by purporting to have found inaccuracies related to sellers’ representations and warranties in particular loan sale agreements. Mortgage investors could seek to have the Company buy back mortgage loans or compensate them for losses incurred on mortgage loans that the Company has sold based on claims that the Company breached its limited representations or warranties. The Company’s mortgage operations have established accruals for possible losses associated with mortgage loans previously originated and sold to investors. The Company establishes accruals for such possible losses based upon, among other things, an analysis of repurchase requests received, an estimate of potential repurchase claims not yet received and actual past repurchases and losses through the disposition of affected loans as well as previous settlements. While the Company believes that it has adequately reserved for known losses and projected repurchase requests, given the volatility in the residential mortgage industry and the uncertainty regarding the ultimate resolution of these claims, if either actual repurchases or the losses incurred resolving those repurchases exceed the Company’s expectations, additional recourse expense may be incurred. Loan origination liabilities are included in Financial Services’ liabilities in the Company's condensed consolidated balance sheets. The activity in the Company’s loan origination liabilities was as follows: Three Months Ended (In thousands) February 28, 2021 February 29, 2020 Loan origination liabilities, beginning of period $ 7,569 9,364 Provision for losses 966 776 Payments/settlements (102) (144) Loan origination liabilities, end of period $ 8,433 9,996 LMF Commercial - loans held-for-sale LMF Commercial originated commercial loans as follows: Three Months Ended (Dollars in thousands) February 28, 2021 February 29, 2020 Originations (1) $ 219,500 412,250 Sold 282,965 314,439 Securitizations 2 2 (1) During both the three months ended February 28, 2021 and February 29, 2020 all the commercial loans originated were recorded as loans held-for-sale. Investments held-to-maturity At February 28, 2021 and November 30, 2020, the Financial Services' held commercial mortgage-backed securities ("CMBS"). These securities are classified as held-to-maturity based on its intent and ability to hold the securities until maturity and changes in estimated cash flows are reviewed periodically to determine if an other-than-temporary impairment has occurred. Based on the segment’s assessment, no impairment charges were recorded during either the three months ended February 28, 2021 or February 29, 2020. The Company has financing agreements to finance CMBS that have been purchased as investments by the Financial Services segment. Details related to Financial Services' CMBS were as follows: (Dollars in thousands) February 28, 2021 November 30, 2020 Carrying value $ 163,290 164,230 Outstanding debt, net of debt issuance costs 152,659 153,505 Incurred interest rate 3.4 % 3.4 % February 28, 2021 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 Multifamily The Company is actively involved, primarily through unconsolidated entities, in the development, construction and property management of multifamily rental properties. The Multifamily segment focuses on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S. markets. Operations of the Multifamily segment include revenues generated from the sales of land, revenue from construction activities, and management and promote fees generated from joint ventures and equity in earnings (loss) from unconsolidated entities and other gains (which includes sales of buildings), less the cost of sales of land sold, expenses related to construction activities and general and administrative expenses. Lennar Other Lennar Other primarily includes strategic investments in technology companies, primarily managed by the Company's LEN X subsidiary, and fund interests the Company retained when it sold the Rialto asset and investment management platform. Operations of the Lennar Other segment include operating earnings (loss) consisting of revenues generated primarily from the Company's share of carried interests in the Rialto fund investments retained after the sale of Rialto's asset and investment management platform, along with equity in earnings (loss) from the Rialto fund investments and strategic technology investments, gains (losses) from investments in equity securities and other income (expense), net from the remaining assets related to the Company's former Rialto segment. During the three months ended February 28, 2021, the Company recognized a gain of $469.7 million related to a strategic investment, Opendoor, which began trading on the Nasdaq stock market in December 2020. The gain relates to the mark to market of the Company's share holdings in the public entity net of carried interest. The gain was recognized due to the investment now being accounted for as an investment in equity securities which is held at fair value and the change in fair value is recognized through earnings. In addition to Opendoor, two other of the Company's strategic technology investments, Hippo Home Insurance and Doma, formerly States Title, have announced agreements to merge with publicly traded special purpose acquisition companies. During the three months ended February 28, 2021, the Company entered into a definitive agreement with Sunnova Energy International Inc. ("Sunnova") under which Sunnova will acquire the Company's residential solar platform, Sunstreet. Under the agreement, the Company would receive up to 7.22 million shares of Sunnova common stock, with 3.33 million shares in initial consideration payable at closing. The remaining shares would be payable upon achievement of two earnouts. The Company expects to record a significant gain upon the closing of the sale, which is anticipated to be in the second quarter of 2021. |
Investments in Unconsolidated E
Investments in Unconsolidated Entities | 3 Months Ended |
Feb. 28, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Entities | Investments in Unconsolidated Entities Homebuilding Unconsolidated Entities The investments in Company's Homebuilding unconsolidated entities were as follows: (In thousands) February 28, 2021 November 30, 2020 Investments in unconsolidated entities (1) (2) $ 1,077,353 953,177 Underlying equity in unconsolidated entities' net assets (1) 1,395,393 1,269,701 (1) The basis difference was primarily as a result of the Company contributing its investment in three strategic joint ventures with a higher fair value than book value for an investment in the FivePoint entity and deferring equity in earnings on land sales to the Company. (2) Included in the Company's recorded investments in Homebuilding unconsolidated entities is the Company's 40% ownership of FivePoint. As of February 28, 2021 and November 30, 2020, the carrying amount of the Company's investment was $390.3 million and $392.1 million, respectively. The Company has an immaterial amount of recourse exposure to debt of the Homebuilding unconsolidated entities in which it has investments. While the Company sometimes guarantees debt of unconsolidated entities, in most instances the Company’s partners have also guaranteed that debt and are required to contribute their shares of any payments. In most instances the amount of guaranteed debt of an unconsolidated entity is less than the value of the collateral securing it. During the three months ended February 28, 2021, the Company formed the Upward America Venture ("the Venture"). The Venture will acquire single family homes for rent in high growth markets across the United States. Subsequent to February 28, 2021, the Venture raised equity to get to a total commitment of $1.25 billion led by institutional investors. Including leverage, the Venture will be positioned to acquire over $4.0 billion of new single family homes and townhomes from Lennar and potentially other homebuilders. Multifamily Unconsolidated Entities The unconsolidated entities in which the Multifamily segment has investments usually finance their activities with a combination of partner equity and debt financing. In connection with many of the bank loans to Multifamily unconsolidated entities, the Company (or entities related to them) has been required to give guarantees of completion and cost over-runs to the lenders and partners. Those completion guarantees may require that the guarantors complete the construction of the improvements for which the financing was obtained. Additionally, the Company guarantees the construction costs of the project as construction cost over-runs would be paid by the Company. Generally, these payments would increase the Company's investment in the entities and would increase its share of funds the entities distribute after the achievement of certain thresholds. As of both February 28, 2021 and November 30, 2020, the fair value of the completion guarantees was immaterial. As of February 28, 2021 and November 30, 2020, Multifamily segment's unconsolidated entities had non-recourse debt with completion guarantees of $660.0 million and $722.9 million, respectively. In many instances, the Multifamily segment is appointed as the construction, development and property manager for its Multifamily unconsolidated entities and receives fees for performing this function. The Multifamily segment also provides general contractor services for construction of some of the rental properties owned by unconsolidated entities in which the Company has investments. The details of the activity was as follows: Three Months Ended (In thousands) February 28, 2021 February 29, 2020 General contractor services, net of deferrals $ 115,399 93,894 General contractor costs 110,453 90,181 Management fee income 14,871 13,823 The Multifamily segment includes Multifamily Venture Fund I ("LMV I") and Multifamily Venture Fund II LP ("LMV II"), which are long-term multifamily development investment vehicles involved in the development, construction and property management of class-A multifamily assets. Details of each as of and during the three months ended February 28, 2021 are included below: February 28, 2021 (In thousands) LMV I LMV II Lennar's carrying value of investments $ 321,262 318,578 Equity commitments 2,204,016 1,257,700 Equity commitments called 2,140,646 1,105,170 Lennar's equity commitments 504,016 381,000 Lennar's equity commitments called 496,804 333,706 Lennar's remaining commitments 7,212 47,294 Distributions to Lennar during the three months ended February 28, 2021 4,393 — Lennar Other Unconsolidated Entities Lennar Other's unconsolidated entities includes fund investments the Company retained when it sold the Rialto assets and investment management platform, as well as strategic investments in technology companies, primarily managed by the Company's LEN X |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Feb. 28, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity The following tables reflect the changes in equity attributable to both Lennar Corporation and the noncontrolling interests of its consolidated subsidiaries in which it has less than a 100% ownership interest for the three months ended February 28, 2021 and February 29, 2020: Three Months Ended February 28, 2021 (In thousands) Total Class A Class B Additional Treasury Accumulated Other Comprehensive Loss Retained Noncontrolling Balance at November 30, 2020 $ 18,099,401 29,894 3,944 8,676,056 (1,279,227) (805) 10,564,994 104,545 Net earnings (including net earnings attributable to noncontrolling interests) 1,016,909 — — — — — 1,001,369 15,540 Employee stock and directors plans (26,279) 153 — (59) (26,373) — — — Purchases of treasury stock (43,110) — — — (43,110) — — — Amortization of restricted stock 48,818 — — 48,818 — — — — Cash dividends (77,843) — — — — — (77,843) — Receipts related to noncontrolling interests 8,896 — — — — — — 8,896 Payments related to noncontrolling interests (11,397) — — — — — — (11,397) Non-cash purchase or activity of noncontrolling interests, net 2,998 — — (623) — — — 3,621 Total other comprehensive loss, net of tax (942) — — — — (942) — — Balance at February 28, 2021 $ 19,017,451 30,047 3,944 8,724,192 (1,348,710) (1,747) 11,488,520 121,205 Three Months Ended February 29, 2020 (In thousands) Total Class A Class B Additional Treasury Accumulated Other Comprehensive Income (loss) Retained Noncontrolling Balance at November 30, 2019 $ 16,033,830 29,712 3,944 8,578,219 (957,857) 498 8,295,001 84,313 Net earnings (including net loss attributable to noncontrolling interests) 391,223 — — — — — 398,452 (7,229) Employee stock and directors plans (7,424) 90 — (130) (7,384) — — — Purchases of treasury stock (288,515) — — — (288,515) — — — Amortization of restricted stock 31,855 — — 31,855 — — — — Cash dividends (39,240) — — — — — — (39,240) — Receipts related to noncontrolling interests 88,913 — — — — — — 88,913 Payments related to noncontrolling interests (16,734) — — — — — — (16,734) Non-cash consolidations, net (485) — — — — — — (485) Total other comprehensive loss, net of tax (46) — — — — (46) — — Balance at February 29, 2020 $ 16,193,377 29,802 3,944 8,609,944 (1,253,756) 452 8,654,213 148,778 On February 12, 2021, the Company paid cash dividends of $0.25 per share on both its Class A and Class B common stock to holders of record at the close of business on January 29, 2021, as declared by its Board of Directors on January 14, 2021. The Company approved and paid cash dividends of $0.125 per share for each of the first three quarters of 2020 and $0.25 per share in the fourth quarter of 2020 on both its Class A and Class B common stock. In January 2021, the Company's Board of Directors authorized the repurchase of up to the lesser of $1 billion in value, excluding commissions, or 25 million in shares, of the Company's outstanding Class A and Class B common stock. The repurchase has no expiration date. The following table represents the repurchase of the Company's Class A and Class B common stocks under this program and its predecessor for the three months ended February 28, 2021 and February 29, 2020: Three Months Ended February 28, 2021 February 29, 2020 (Dollars in thousands, except price per share) Class A Class B Class A Class B Shares repurchased 510,000 — 4,250,000 115,000 Principal $ 43,100 $ — $ 282,274 $ 6,155 Average price per share $ 84.51 $ — $ 66.42 $ 53.52 |
Income Taxes
Income Taxes | 3 Months Ended |
Feb. 28, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes and effective tax rate were as follows: Three Months Ended (Dollars in thousands) February 28, 2021 February 29, 2020 Provision for income taxes $310,105 32,329 Effective tax rate (1) 23.6 % 7.5 % (1) For the three months ended February 28, 2021 and February 29, 2020, the effective tax rate included state income tax expense and non-deductible executive compensation, partially offset by new energy efficient home and solar tax credits. The three months ended February 29, 2020 also included benefits related to the years ended November 30, 2018, 2019 and 2020, due to Congress retroactively extending the new energy efficient home tax credit in December 2019. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Feb. 28, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net earnings attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. All outstanding nonvested shares that contain non-forfeitable rights to dividends or dividend equivalents that participate in undistributed earnings with common stock are considered participating securities and are included in computing earnings per share pursuant to the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating securities according to dividends or dividend equivalents and participation rights in undistributed earnings. The Company’s restricted common stock ("nonvested shares") is considered participating securities. Basic and diluted earnings per share were calculated as follows: Three Months Ended (In thousands, except per share amounts) February 28, 2021 February 29, 2020 Numerator: Net earnings attributable to Lennar $ 1,001,369 398,452 Less: distributed earnings allocated to nonvested shares 630 334 Less: undistributed earnings allocated to nonvested shares 11,624 4,092 Numerator for basic earnings per share 989,115 394,026 Less: net amount attributable to Rialto's Carried Interest Incentive Plan (1) 553 — Numerator for diluted earnings per share $ 988,562 394,026 Denominator: Denominator for basic earnings per share - weighted average common shares outstanding 309,020 311,213 Effect of dilutive securities: Shared based payments — 2 Denominator for diluted earnings per share - weighted average common shares outstanding 309,020 311,215 Basic earnings per share $ 3.20 1.27 Diluted earnings per share $ 3.20 1.27 (1) The amounts presented relate to Rialto's Carried Interest Incentive Plan and represent the difference between the advanced tax distributions received from the Rialto funds included in the Lennar Other segment and the amount Lennar is assumed to own. For both the three months ended February 28, 2021 and February 29, 2020, there were no options to purchase shares of common stock that were outstanding and anti-dilutive. |
Homebuilding Senior Notes and O
Homebuilding Senior Notes and Other Debts Payable | 3 Months Ended |
Feb. 28, 2021 | |
Debt Disclosure [Abstract] | |
Homebuilding Senior Notes and Other Debts Payable | Homebuilding Senior Notes and Other Debts Payable (Dollars in thousands) February 28, 2021 November 30, 2020 6.25% senior notes due December 2021 $ 303,963 305,221 4.125% senior notes due 2022 599,123 598,876 5.375% senior notes due 2022 254,628 255,342 4.750% senior notes due 2022 573,030 572,724 4.875% senior notes due December 2023 397,749 397,347 4.500% senior notes due 2024 647,709 647,528 5.875% senior notes due 2024 442,315 443,484 4.750% senior notes due 2025 498,113 498,002 5.25% senior notes due 2026 406,406 406,709 5.00% senior notes due 2027 352,412 352,508 4.75% senior notes due 2027 894,948 894,760 Mortgage notes on land and other debt 605,772 583,257 $ 5,976,168 5,955,758 The carrying amounts of the senior notes in the table above are net of debt issuance costs of $14.8 million and $15.9 million as of February 28, 2021 and November 30, 2020, respectively. During three months ended February 28, 2021, the maximum borrowings on the Company's unsecured revolving credit facility (the "Credit Facility") were increased by $100 million from $2.4 billion to $2.5 billion and included a $300 million accordion feature, subject to additional commitments, thus the maximum borrowings could be $2.8 billion maturing in 2024. The Credit Facility agreement (the "Credit Agreement") provides that up to $500 million in commitments may be used for letters of credit . The maturity, debt covenants and details of the Credit Facility are unchanged from the disclosure in the Company's Financial Condition and Capital Resources section in its Form 10-K for the year ended November 30, 2020. In addition to the Credit Facility, the Company has other letter of credit facilities with different financial institutions. Procedures related to performance letters of credit, financial letters of credit and surety bonds are unchanged from the disclosure in the Company's Financial Condition and Capital Resources section in its Form 10-K for the year ended November 30, 2020. The Company's outstanding letters of credit and surety bonds are described below: (In thousands) February 28, 2021 November 30, 2020 Performance letters of credit $ 803,950 752,096 Surety bonds 3,114,002 3,087,711 Anticipated future costs primarily for site improvements related to performance surety bonds 1,675,503 1,584,642 |
Product Warranty
Product Warranty | 3 Months Ended |
Feb. 28, 2021 | |
Product Warranties Disclosures [Abstract] | |
Product Warranty | Product Warranty Warranty and similar reserves for homes are established at an amount estimated to be adequate to cover potential costs for materials and labor with regard to warranty-type claims expected to be incurred subsequent to the delivery of a home. Reserves are determined based on historical data and trends with respect to similar product types and geographical areas. The activity in the Company’s warranty reserve, which are included in Homebuilding other liabilities, was as follows: Three Months Ended (In thousands) February 28, 2021 February 29, 2020 Warranty reserve, beginning of the period $ 341,765 294,138 Warranties issued 42,928 38,271 Adjustments to pre-existing warranties from changes in estimates (1) 5,641 5,904 Payments (42,234) (50,900) Warranty reserve, end of period $ 348,100 287,413 (1) The adjustments to pre-existing warranties from changes in estimates during the three months ended February 28, 2021 and February 29, 2020 primarily related to specific claims in certain of the Company's homebuilding communities and other adjustments. |
Financial Instruments and Fair
Financial Instruments and Fair Value Disclosures | 3 Months Ended |
Feb. 28, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Disclosures | Financial Instruments and Fair Value Disclosures The following table presents the carrying amounts and estimated fair values of financial instruments held by the Company at February 28, 2021 and November 30, 2020, 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 28, 2021 November 30, 2020 (In thousands) Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value ASSETS Financial Services: Loans held-for-investment, net Level 3 $ 69,973 70,112 72,626 70,808 Investments held-to-maturity Level 3 163,290 194,485 164,230 196,047 LIABILITIES Homebuilding senior notes and other debts payable, net Level 2 $ 5,976,168 6,529,969 5,955,758 6,581,798 Financial Services notes and other debts payable, net Level 2 963,070 963,960 1,463,919 1,464,850 Lennar Other notes and other debts payable, net Level 2 1,906 1,906 1,906 1,906 The following methods and assumptions are used by the Company in estimating fair values: Financial Services —The fair values above are based on quoted market prices, if available. The fair values for instruments that do not have quoted market prices are estimated by the Company on the basis of discounted cash flows or other financial information. For notes and other debts payable, the fair values approximate their carrying value due to variable interest pricing terms and the short-term nature of the majority of the borrowings. Homebuilding —For senior notes and other debts payable, the fair value of fixed-rate borrowings is primarily based on quoted market prices and the fair value of variable-rate borrowings is based on expected future cash flows calculated using current market forward rates. Lennar Other —The fair value for notes payable approximate their carrying value due to variable interest pricing terms and the short-term nature of the borrowings. Fair Value Measurements: GAAP provides a framework for measuring fair value, expands disclosures about fair value measurements and establishes a fair value hierarchy which prioritizes the inputs used in measuring fair value summarized as follows: Level 1: Fair value determined based on quoted prices in active markets for identical assets. Level 2: Fair value determined using significant other observable inputs. Level 3: Fair value determined using significant unobservable inputs. 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, 2021 November 30, 2020 Financial Services Assets: Residential loans held-for-sale Level 2 $ 971,452 1,296,517 LMF Commercial loans held-for-sale Level 3 123,148 193,588 Mortgage servicing rights Level 3 1,499 2,113 Lennar Other: Investments available-for-sale Level 3 $ 41,247 53,497 Residential and LMF Commercial loans held-for-sale in the table above include: February 28, 2021 November 30, 2020 (In thousands) Aggregate Principal Balance Change in Fair Value Aggregate Principal Balance Change in Fair Value Residential loans held-for-sale $ 942,504 28,948 1,232,548 63,969 LMF Commercial loans held-for-sale 129,810 (6,662) 194,362 (774) Financial Services residential loans held-for-sale - Fair value is based on independent quoted market prices, where available, or the prices for other mortgage whole loans with similar characteristics. The Company recognizes the fair value of its rights to service a mortgage loan as revenue upon entering into an interest rate lock loan commitment with a borrower. The fair value of these are included in Financial Services’ loans held-for-sale as of February 28, 2021 and November 30, 2020. Fair value of servicing rights is determined based on actual sales of servicing rights on loans with similar characteristics. LMF Commercial loans held-for-sale - The fair value of loans held-for-sale is calculated from model-based techniques that use discounted cash flow assumptions and the Company’s own estimates of CMBS spreads, market interest rate movements and the underlying loan credit quality. The details and methods of the calculation are unchanged from the fair value disclosure in the Company's Notes to the Financial Statements section in its Form 10-K for the year ended November 30, 2020. These methods use unobservable inputs in estimating a discount rate that is used to assign a value to each loan. While the cash payments on the loans are contractual, the discount rate used and assumptions regarding the relative size of each class in the CMBS capital structure can significantly impact the valuation. Therefore, the estimates used could differ materially from the fair value determined when the loans are sold to a securitization trust. Mortgage servicing rights - Financial Services records mortgage servicing rights when it sells loans on a servicing-retained basis or through the acquisition or assumption of the right to service a financial asset. The fair value of the mortgage servicing rights is calculated using third-party valuations. 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 February 28, 2021 Mortgage prepayment rate 12% Discount rate 14% Delinquency rate 3% Lennar Other investments available-for-sale - The fair value of investments available-for-sale is calculated from model-based techniques that use discounted cash flow assumptions and the Company’s own estimates of CMBS spreads, market interest rate movements and the underlying loan credit quality. Loan values are calculated by allocating the change in value of an assumed CMBS capital structure to each loan. The value of an assumed CMBS capital structure is calculated, generally, by discounting the cash flows associated with each CMBS class at market interest rates and at the Company’s own estimate of CMBS spreads. 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, 2021 February 29, 2020 Changes in fair value included in Financial Services revenues: Loans held-for-sale $ (35,021) (7,493) Mortgage loan commitments (4,915) 14,895 Forward contracts 34,238 (9,361) Changes in fair value included in Lennar Other unrealized gain: Investments in equity securities $ 469,745 — Changes in fair value included in other comprehensive loss, net of tax: Lennar Other investments available-for-sale $ (942) — Financial Services investments available-for-sale — (46) Interest on Financial Services loans held-for-sale and LMF Commercial loans held-for-sale measured at fair value is calculated based on the interest rate of the loans and recorded as revenues in the Financial Services’ statement of operations. The following table represents 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, 2021 February 29, 2020 (In thousands) Mortgage servicing rights LMF Commercial loans held-for-sale Mortgage servicing rights LMF Commercial loans held-for-sale Beginning balance $ 2,113 193,588 24,679 197,224 Purchases/loan originations 424 219,500 746 412,250 Sales/loan originations sold, including those not settled — (282,965) — (314,439) Disposals/settlements (1,038) — (1,289) — Changes in fair value (1) — (6,767) (11,560) 5,601 Interest and principal paydowns — (208) — (234) Ending balance $ 1,499 123,148 12,576 300,402 (1) Changes in fair value for LMF Commercial loans held-for-sale and Financial Services mortgage servicing rights are included in Financial Services' revenues. The Company’s assets measured at fair value on a nonrecurring basis are those assets for which the Company has recorded valuation adjustments and write-offs. The fair values included in the table below represent only those assets whose carrying values were adjusted to fair value during the respective periods disclosed. The assets measured at fair value on a nonrecurring basis are summarized below: Three Months Ended February 28, 2021 February 29, 2020 (In thousands) Fair Value 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 (1) Level 3 $ 442 — (442) 73,006 59,284 (13,722) Land and land under development (1) Level 3 2,543 2,350 (193) 22,453 11,660 (10,793) (1) Valuation adjustments were included in Homebuilding costs and expenses in the Company's condensed consolidated statements of operations and comprehensive income (loss). Finished homes and construction in progress are included within inventories. Inventories are stated at cost unless the inventory within a community is determined to be impaired, in which case the impaired inventory is written down to fair value. The Company disclosed its accounting policy related to inventories and its review for indicators of impairment in the Summary of Significant Accounting Policies in its Form 10-K for the year ended November 30, 2020. The Company estimates the fair value of inventory evaluated for impairment based on market conditions and assumptions made by management at the time the inventory is evaluated, which may differ materially from actual results if market conditions or assumptions change. For example, changes in market conditions and other specific developments or changes in assumptions may cause the Company to re-evaluate its strategy regarding previously impaired inventory, as well as inventory not currently impaired but for which indicators of impairment may arise if market deterioration occurs, and certain other assets that could result in further valuation adjustments and/or additional write-offs of option deposits and pre-acquisition costs due to abandonment of those options contracts. The Company disclosed its accounting policy related to inventories and its review for indicators of impairment in the Summary of Significant Accounting Policies in its Form 10-K for the year ended November 30, 2020. On a quarterly basis, the Company reviews its active communities for indicators of potential impairments. The table below summarizes communities reviewed for indicators of impairment and communities with valuation adjustments recorded: Communities with valuation adjustments # of active communities # of communities with potential indicator of impairment # of communities Fair Value (in thousands) Valuation Adjustments (in thousands) At or for the Three Months Ended February 28, 2021 1,158 10 — $ — $ — February 29, 2020 1,253 33 6 45,123 19,944 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, 2020 Unobservable inputs Range Average selling price $ 201,000 - 970,000 Absorption rate per quarter (homes) 3 - 15 Discount rate 20% |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Feb. 28, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities The Company evaluated the joint venture ("JV") agreements of its JV's that were formed or that had reconsideration events, such as changes in the governing documents or to debt arrangements during the three months ended February 28, 2021 and based on the Company's evaluation, there were no VIEs that were consolidated or deconsolidated. The carrying amount of the Company's consolidated VIE's assets and non-recourse liabilities are disclosed in the footnote to the condensed consolidated balance sheets. A VIE’s assets can only be used to settle obligations of that VIE. The VIEs are not guarantors of the Company’s senior notes or other debts payable. The assets held by a VIE usually are collateral for that VIE’s debt. The Company and other partners do not generally have an obligation to make capital contributions to a VIE unless the Company and/or the other partner(s) have entered into debt guarantees with a VIE’s lenders. Other than debt guarantee agreements with a VIE’s lenders, there are no liquidity arrangements or agreements to fund capital or purchase assets that could require the Company to provide financial support to a VIE. While the Company has option contracts to purchase land from certain of its VIEs, the Company is not required to purchase the assets and could walk away from the contracts. Unconsolidated VIEs The Company’s recorded investments in VIEs that are unconsolidated and its estimated maximum exposure to loss were as follows: February 28, 2021 November 30, 2020 (In thousands) Investments in Lennar’s Maximum Investments in Lennar’s Maximum Homebuilding (1) $ 104,527 306,117 89,654 89,828 Multifamily (2) 642,792 706,442 619,540 717,271 Financial Services 163,290 163,290 164,230 164,230 Lennar Other (3) 7,154 7,154 76,023 130,177 $ 917,763 1,183,003 949,447 1,101,506 (1) As of February 28, 2021, the increase in the maximum exposure to loss was related the Company's commitment to fund capital in the Upward America Venture, a single family for rent platform. (2) As of February 28, 2021 and November 30, 2020, the maximum exposure to loss of Multifamily's investments in unconsolidated VIEs was primarily limited to its investments in the unconsolidated VIEs, except with regard to the remaining equity commitment of $54.5 million and $88.1 million, respectively, to fund LMV I and LMV II for future expenditures related to the construction and development of its projects. (3) As of February 28, 2021, the decrease in investments in unconsolidated VIEs and maximum exposure to loss was related to an entity which had a reconsideration event due to the payoff of a note receivable which caused the entity to no longer be considered a VIE. While these entities are VIEs, the Company has determined that the power to direct the activities of the VIEs that most significantly impact the VIEs’ economic performance is generally shared and the Company and its partners are not de-facto agents. While the Company generally manages the day-to-day operations of the VIEs, each of these VIEs has an executive committee made up of representatives from each partner. The members of the executive committee have equal votes and major decisions require unanimous consent and approval from all members. The Company does not have the unilateral ability to exercise participating voting rights without partner consent. There are no liquidity arrangements or agreements to fund capital or purchase assets that could require the Company to provide financial support to the VIEs. Except for the unconsolidated VIEs discussed above, the Company and the other partners did not guarantee any debt of the other unconsolidated VIEs. While the Company has option contracts to purchase land from certain of its unconsolidated VIEs, the Company is not required to purchase the assets and could walk away from the contracts. Option Contracts The Company has access to land through option contracts, which generally enable it to control portions of properties owned by third parties (including land funds) and unconsolidated entities until the Company has determined whether to exercise the options. The Company evaluates all option contracts for land to determine whether they are VIEs and, if so, whether the Company is the primary beneficiary of certain of these option contracts. Although the Company does not have legal title to the optioned land, if the Company is deemed to be the primary beneficiary or makes a significant deposit for optioned land, it may need to consolidate the land under option at the purchase price of the optioned land. During the three months ended February 28, 2021, consolidated inventory not owned decreased by $28.8 million with a corresponding decrease to liabilities related to consolidated inventory not owned in the accompanying condensed consolidated balance sheet as of February 28, 2021. The decrease was primarily due to increases in homesite takedowns in the quarter. To reflect the purchase price of the homesite takedowns, the Company had a net reclass related to option deposits from consolidated inventory not owned to land under development in the accompanying condensed consolidated balance sheet as of February 28, 2021. The liabilities related to consolidated inventory not owned primarily represent the difference between the option exercise prices for the optioned land and the Company’s cash deposits. The Company's exposure to losses on its option contracts with third parties and unconsolidated entities were as follows: (Dollars in thousands) February 28, 2021 November 30, 2020 Non-refundable option deposits and pre-acquisition costs $ 711,218 414,154 Letters of credit in lieu of cash deposits under certain land and option contracts 117,974 87,537 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Feb. 28, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities The Company is party to various claims, legal actions and complaints arising in the ordinary course of business. In the opinion of management, the disposition of these matters will not have a material adverse effect on the Company’s consolidated financial statements. From time to time, the Company is also a party to various lawsuits involving purchases and sales of real property. These lawsuits include claims regarding representations and warranties made in connection with the transfer of properties and disputes regarding the obligation to purchase or sell properties. The Company does not believe that the ultimate resolution of these claims or lawsuits will have a material adverse effect on its business or financial position. However, the financial effect of litigation concerning purchases and sales of property may depend upon the value of the subject property, which may have changed from the time the agreement for purchase or sale was entered into. Leases The Company has entered into agreements to lease certain office facilities and equipment under operating leases. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. ROU assets and right-of-use lease liabilities are recorded on the balance sheet for all leases, except leases with an initial term of 12 months or less. Many of the Company's leases include options to renew. The exercise of lease renewal options is at the Company's option and therefore renewal option payments have not been included in the ROU assets or lease liabilities. The following table includes additional information about the Company's leases: (Dollars in thousands) February 28, 2021 November 30, 2020 Right-of-use assets $ 164,604 113,390 Lease liabilities 173,728 122,836 Weighted-average remaining lease term (in years) 2.5 2.6 Weighted-average discount rate 3.0 % 3.1 % Future minimum payments under the noncancellable leases in effect at February 28, 2021 were as follows: (Dollars in thousands) Lease Payments 2021 $ 27,789 2022 32,762 2023 26,681 2024 21,188 2025 17,425 2026 and thereafter 71,131 Total future minimum lease payments (1) $ 196,976 Less: Interest (2) 23,248 Present value of lease liabilities (2) $ 173,728 (1) Total future minimum lease payments exclude variable lease costs of $14.3 million and short-term lease costs of $2.2 million. This also does not include minimum lease payments for executed and legally enforceable leases that have not yet commenced. As of February 28, 2021, the minimum lease payments for these leases that have not yet commenced were immaterial. (2) The Company's leases do not include a readily determinable implicit rate. As such, the Company has estimated the discount rate for these leases to determine the present value of lease payments at the lease commencement date or as of December 1, 2019, which was the effective date of ASU 2016-02. As of February 28, 2021, the weighted average remaining lease term and weighted average discount rate used in calculating the lease liabilities were 2.5 years and 3.0%, respectively. The Company recognized the lease liabilities on its condensed consolidated balance sheets within accounts payable or other liabilities of the respective segments. During the three months ended February 28, 2021 and February 29, 2020, the Company's rental expense and payments on lease liabilities were as follows: (Dollars in thousands) February 28, 2021 February 29, 2020 Rental expense $ 20,707 20,706 Payment on lease liabilities 9,906 17,426 On occasion, the Company may sublease rented space which is no longer used for the Company's operations. For both the three months ended February 28, 2021 and February 29, 2020, the Company had an immaterial amount of sublease income. |
Basis of Presentation (Policy)
Basis of Presentation (Policy) | 3 Months Ended |
Feb. 28, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. |
Basis of Consolidation | These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended November 30, 2020. The basis of consolidation is unchanged from the disclosure in the Company's Notes to Consolidated Financial Statements section in its Form 10-K for the year ended November 30, 2020. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for the fair presentation of the accompanying condensed consolidated financial statements have been made. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). ASU 2016-13 significantly changes the impairment model for most financial assets and certain other instruments. ASU 2016-13 requires immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, which generally results in earlier recognition of allowances for credit losses on loans and other financial instruments. ASU 2016-13 was effective for the Company's fiscal year beginning December 1, 2020. The adoption of ASU 2016-13 did not have a material impact on the Company's condensed consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Accounting for Goodwill Impairment ("ASU 2017-04"). ASU 2017-04 removes the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. A goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 was effective for the Company’s fiscal year beginning December 1, 2020. The impact of the adoption of ASU 2017-04 did not have a material impact on the Company's consolidated financial statements. New Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes ("ASU 2019-12"). ASU 2019-12 will be effective for the Company’s fiscal year beginning December 1, 2022. The Company is currently evaluating the impact the adoption of ASU 2019-12 will have on the Company's condensed consolidated financial statements. |
Reclassifications | Reclassifications Certain prior year amounts in the condensed consolidated financial statements have been reclassified to conform with the 2021 presentation. The Company reclassed the balance of its investment in Doma, formerly States Title, to which the Company sold the majority of the Financial Services segment's retail title agency business and title insurance underwriter in the first |
Operating and Reporting Segme_2
Operating and Reporting Segments (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
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 28, 2021 Assets: Homebuilding Financial Multifamily Lennar Total Cash and cash equivalents $ 2,421,411 117,856 25,644 3,888 2,568,799 Restricted cash 17,878 8,521 — — 26,399 Receivables, net (1) 300,134 495,484 96,842 — 892,460 Inventories 17,692,942 — 289,531 — 17,982,473 Loans held-for-sale (2) — 1,094,600 — — 1,094,600 Investments in equity securities (3) — — — 666,956 666,956 Investments available-for-sale (4) — — — 41,247 41,247 Loans held-for-investment, net — 69,973 — — 69,973 Investments held-to-maturity — 163,290 — — 163,290 Investments in unconsolidated entities 1,077,353 — 704,964 315,617 2,097,934 Goodwill 3,442,359 189,699 — — 3,632,058 Other assets 1,162,564 78,128 66,739 8,360 1,315,791 $ 26,114,641 2,217,551 1,183,720 1,036,068 30,551,980 Liabilities: Notes and other debts payable, net $ 5,976,168 963,070 — 1,906 6,941,144 Other liabilities 4,167,833 150,013 235,651 39,888 4,593,385 $ 10,144,001 1,113,083 235,651 41,794 11,534,529 (In thousands) November 30, 2020 Assets: Homebuilding Financial Multifamily Lennar Total Cash and cash equivalents $ 2,703,986 116,171 38,963 3,918 2,863,038 Restricted cash 15,211 54,481 — — 69,692 Receivables, net (1) 298,671 552,779 86,629 — 938,079 Inventories 16,925,228 — 249,920 — 17,175,148 Loans held-for-sale (2) — 1,490,105 — — 1,490,105 Investments in equity securities (3) — — — 68,771 68,771 Investments available-for-sale (4) — — — 53,497 53,497 Loans held-for-investment, net — 72,626 — — 72,626 Investments held-to-maturity — 164,230 — — 164,230 Investments in unconsolidated entities 953,177 — 724,647 387,097 2,064,921 Goodwill 3,442,359 189,699 — — 3,632,058 Other assets 1,190,793 68,027 75,749 8,443 1,343,012 $ 25,529,425 2,708,118 1,175,908 521,726 29,935,177 Liabilities: Notes and other debts payable, net $ 5,955,758 1,463,919 — 1,906 7,421,583 Other liabilities 3,969,893 180,329 252,911 11,060 4,414,193 $ 9,925,651 1,644,248 252,911 12,966 11,835,776 (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 28, 2021 and November 30, 2020, 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 $85.1 million and $61.6 million without readily available fair values as of February 28, 2021 and November 30, 2020, 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 February 28, 2021 (In thousands) Homebuilding Financial Services Multifamily Lennar Other Corporate and Total Revenues $ 4,943,056 244,069 131,443 6,900 — 5,325,468 Operating earnings (loss) 833,180 146,207 (874) 471,346 — 1,449,859 Corporate general and administrative expenses — — — — 110,531 110,531 Charitable foundation contribution — — — — 12,314 12,314 Earnings (loss) before income taxes 833,180 146,207 (874) 471,346 (122,845) 1,327,014 Three Months Ended February 29, 2020 Revenues $ 4,172,116 198,661 132,617 1,943 — 4,505,337 Operating earnings 460,398 47,317 1,785 899 — 510,399 Corporate general and administrative expenses — — — — 82,634 82,634 Charitable foundation contribution — — — — 4,213 4,213 Earnings before income taxes 460,398 47,317 1,785 899 (86,847) 423,552 The assets related to the Company’s homebuilding segments were as follows: (In thousands) East Central Texas West Other Corporate and Unallocated Total Homebuilding February 28, 2021 $ 5,540,055 3,561,065 2,353,652 11,101,983 1,314,990 2,242,896 26,114,641 November 30, 2020 5,308,114 3,438,600 2,150,916 10,504,374 1,301,618 2,825,803 25,529,425 Financial information relating to the Company’s homebuilding segments was as follows: Three Months Ended February 28, 2021 (In thousands) East Central Texas West Other Total Homebuilding Revenues $ 1,355,942 928,442 644,078 2,009,579 5,015 4,943,056 Operating earnings (loss) 262,083 132,023 129,643 321,706 (12,275) 833,180 Three Months Ended February 29, 2020 Revenues $ 1,152,332 789,510 473,228 1,748,769 8,277 4,172,116 Operating earnings (loss) 148,754 55,723 53,073 224,907 (22,059) 460,398 |
Schedule of Line of Credit Facilities | At February 28, 2021, 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: March 2021(1) $ 100,000 June 2021 600,000 July 2021 200,000 December 2021 500,000 Total - Residential facilities $ 1,400,000 LMF Commercial facilities maturing November 2021 $ 100,000 December 2021(2) 611,438 Total - LMF Commercial facilities $ 711,438 Total $ 2,111,438 (1) Subsequent to February 28, 2021, the maturity due date was extended to May 2021. (2) Includes $11.4 million warehouse repurchase facility used by LMF Commercial to finance the origination of floating rate accrual loans, which are reported as accrual loans within loans held-for-investment, net. Borrowings and collateral under the facilities and their prior year predecessors were as follows: (In thousands) February 28, 2021 November 30, 2020 Borrowings under the residential facilities $ 631,784 1,185,797 Collateral under the residential facilities 653,698 1,231,619 Borrowings under the LMF Commercial facilities 178,627 124,617 (In thousands) February 28, 2021 November 30, 2020 Performance letters of credit $ 803,950 752,096 Surety bonds 3,114,002 3,087,711 Anticipated future costs primarily for site improvements related to performance surety bonds 1,675,503 1,584,642 |
Schedule of Loan Origination Liabilities | The activity in the Company’s loan origination liabilities was as follows: Three Months Ended (In thousands) February 28, 2021 February 29, 2020 Loan origination liabilities, beginning of period $ 7,569 9,364 Provision for losses 966 776 Payments/settlements (102) (144) Loan origination liabilities, end of period $ 8,433 9,996 |
Schedule of Loans Held for Sale | LMF Commercial originated commercial loans as follows: Three Months Ended (Dollars in thousands) February 28, 2021 February 29, 2020 Originations (1) $ 219,500 412,250 Sold 282,965 314,439 Securitizations 2 2 (1) During both the three months ended February 28, 2021 and February 29, 2020 all the commercial loans originated were recorded as loans held-for-sale. |
Schedule of Commercial Mortgage-Backed Securities | Details related to Financial Services' CMBS were as follows: (Dollars in thousands) February 28, 2021 November 30, 2020 Carrying value $ 163,290 164,230 Outstanding debt, net of debt issuance costs 152,659 153,505 Incurred interest rate 3.4 % 3.4 % |
Schedule of Fair Value Inputs for Commercial Mortgage-Backed Securities | February 28, 2021 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 Unobservable inputs As of February 28, 2021 Mortgage prepayment rate 12% Discount rate 14% Delinquency rate 3% 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, 2020 Unobservable inputs Range Average selling price $ 201,000 - 970,000 Absorption rate per quarter (homes) 3 - 15 Discount rate 20% |
Investments in Unconsolidated_2
Investments in Unconsolidated Entities (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Entities | The investments in Company's Homebuilding unconsolidated entities were as follows: (In thousands) February 28, 2021 November 30, 2020 Investments in unconsolidated entities (1) (2) $ 1,077,353 953,177 Underlying equity in unconsolidated entities' net assets (1) 1,395,393 1,269,701 (1) The basis difference was primarily as a result of the Company contributing its investment in three strategic joint ventures with a higher fair value than book value for an investment in the FivePoint entity and deferring equity in earnings on land sales to the Company. (2) Included in the Company's recorded investments in Homebuilding unconsolidated entities is the Company's 40% ownership of FivePoint. As of February 28, 2021 and November 30, 2020, the carrying amount of the Company's investment was $390.3 million and $392.1 million, respectively. In many instances, the Multifamily segment is appointed as the construction, development and property manager for its Multifamily unconsolidated entities and receives fees for performing this function. The Multifamily segment also provides general contractor services for construction of some of the rental properties owned by unconsolidated entities in which the Company has investments. The details of the activity was as follows: Three Months Ended (In thousands) February 28, 2021 February 29, 2020 General contractor services, net of deferrals $ 115,399 93,894 General contractor costs 110,453 90,181 Management fee income 14,871 13,823 The Multifamily segment includes Multifamily Venture Fund I ("LMV I") and Multifamily Venture Fund II LP ("LMV II"), which are long-term multifamily development investment vehicles involved in the development, construction and property management of class-A multifamily assets. Details of each as of and during the three months ended February 28, 2021 are included below: February 28, 2021 (In thousands) LMV I LMV II Lennar's carrying value of investments $ 321,262 318,578 Equity commitments 2,204,016 1,257,700 Equity commitments called 2,140,646 1,105,170 Lennar's equity commitments 504,016 381,000 Lennar's equity commitments called 496,804 333,706 Lennar's remaining commitments 7,212 47,294 Distributions to Lennar during the three months ended February 28, 2021 4,393 — |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Equity [Abstract] | |
Schedule of Changes in Equity | The following tables reflect the changes in equity attributable to both Lennar Corporation and the noncontrolling interests of its consolidated subsidiaries in which it has less than a 100% ownership interest for the three months ended February 28, 2021 and February 29, 2020: Three Months Ended February 28, 2021 (In thousands) Total Class A Class B Additional Treasury Accumulated Other Comprehensive Loss Retained Noncontrolling Balance at November 30, 2020 $ 18,099,401 29,894 3,944 8,676,056 (1,279,227) (805) 10,564,994 104,545 Net earnings (including net earnings attributable to noncontrolling interests) 1,016,909 — — — — — 1,001,369 15,540 Employee stock and directors plans (26,279) 153 — (59) (26,373) — — — Purchases of treasury stock (43,110) — — — (43,110) — — — Amortization of restricted stock 48,818 — — 48,818 — — — — Cash dividends (77,843) — — — — — (77,843) — Receipts related to noncontrolling interests 8,896 — — — — — — 8,896 Payments related to noncontrolling interests (11,397) — — — — — — (11,397) Non-cash purchase or activity of noncontrolling interests, net 2,998 — — (623) — — — 3,621 Total other comprehensive loss, net of tax (942) — — — — (942) — — Balance at February 28, 2021 $ 19,017,451 30,047 3,944 8,724,192 (1,348,710) (1,747) 11,488,520 121,205 Three Months Ended February 29, 2020 (In thousands) Total Class A Class B Additional Treasury Accumulated Other Comprehensive Income (loss) Retained Noncontrolling Balance at November 30, 2019 $ 16,033,830 29,712 3,944 8,578,219 (957,857) 498 8,295,001 84,313 Net earnings (including net loss attributable to noncontrolling interests) 391,223 — — — — — 398,452 (7,229) Employee stock and directors plans (7,424) 90 — (130) (7,384) — — — Purchases of treasury stock (288,515) — — — (288,515) — — — Amortization of restricted stock 31,855 — — 31,855 — — — — Cash dividends (39,240) — — — — — — (39,240) — Receipts related to noncontrolling interests 88,913 — — — — — — 88,913 Payments related to noncontrolling interests (16,734) — — — — — — (16,734) Non-cash consolidations, net (485) — — — — — — (485) Total other comprehensive loss, net of tax (46) — — — — (46) — — Balance at February 29, 2020 $ 16,193,377 29,802 3,944 8,609,944 (1,253,756) 452 8,654,213 148,778 Three Months Ended February 28, 2021 February 29, 2020 (Dollars in thousands, except price per share) Class A Class B Class A Class B Shares repurchased 510,000 — 4,250,000 115,000 Principal $ 43,100 $ — $ 282,274 $ 6,155 Average price per share $ 84.51 $ — $ 66.42 $ 53.52 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Benefit (Provision) and Effective Tax Rate | The provision for income taxes and effective tax rate were as follows: Three Months Ended (Dollars in thousands) February 28, 2021 February 29, 2020 Provision for income taxes $310,105 32,329 Effective tax rate (1) 23.6 % 7.5 % (1) For the three months ended February 28, 2021 and February 29, 2020, the effective tax rate included state income tax expense and non-deductible executive compensation, partially offset by new energy efficient home and solar tax credits. The three months ended February 29, 2020 also included benefits related to the years ended November 30, 2018, 2019 and 2020, due to Congress retroactively extending the new energy efficient home tax credit in December 2019. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator In Earnings Per Share | Basic and diluted earnings per share were calculated as follows: Three Months Ended (In thousands, except per share amounts) February 28, 2021 February 29, 2020 Numerator: Net earnings attributable to Lennar $ 1,001,369 398,452 Less: distributed earnings allocated to nonvested shares 630 334 Less: undistributed earnings allocated to nonvested shares 11,624 4,092 Numerator for basic earnings per share 989,115 394,026 Less: net amount attributable to Rialto's Carried Interest Incentive Plan (1) 553 — Numerator for diluted earnings per share $ 988,562 394,026 Denominator: Denominator for basic earnings per share - weighted average common shares outstanding 309,020 311,213 Effect of dilutive securities: Shared based payments — 2 Denominator for diluted earnings per share - weighted average common shares outstanding 309,020 311,215 Basic earnings per share $ 3.20 1.27 Diluted earnings per share $ 3.20 1.27 (1) The amounts presented relate to Rialto's Carried Interest Incentive Plan and represent the difference between the advanced tax distributions received from the Rialto funds included in the Lennar Other segment and the amount Lennar is assumed to own. |
Homebuilding Senior Notes and_2
Homebuilding Senior Notes and Other Debts Payable (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Senior Notes and Other Debts Payable | (Dollars in thousands) February 28, 2021 November 30, 2020 6.25% senior notes due December 2021 $ 303,963 305,221 4.125% senior notes due 2022 599,123 598,876 5.375% senior notes due 2022 254,628 255,342 4.750% senior notes due 2022 573,030 572,724 4.875% senior notes due December 2023 397,749 397,347 4.500% senior notes due 2024 647,709 647,528 5.875% senior notes due 2024 442,315 443,484 4.750% senior notes due 2025 498,113 498,002 5.25% senior notes due 2026 406,406 406,709 5.00% senior notes due 2027 352,412 352,508 4.75% senior notes due 2027 894,948 894,760 Mortgage notes on land and other debt 605,772 583,257 $ 5,976,168 5,955,758 |
Schedule of Letter of Credit Facilities | At February 28, 2021, 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: March 2021(1) $ 100,000 June 2021 600,000 July 2021 200,000 December 2021 500,000 Total - Residential facilities $ 1,400,000 LMF Commercial facilities maturing November 2021 $ 100,000 December 2021(2) 611,438 Total - LMF Commercial facilities $ 711,438 Total $ 2,111,438 (1) Subsequent to February 28, 2021, the maturity due date was extended to May 2021. (2) Includes $11.4 million warehouse repurchase facility used by LMF Commercial to finance the origination of floating rate accrual loans, which are reported as accrual loans within loans held-for-investment, net. Borrowings and collateral under the facilities and their prior year predecessors were as follows: (In thousands) February 28, 2021 November 30, 2020 Borrowings under the residential facilities $ 631,784 1,185,797 Collateral under the residential facilities 653,698 1,231,619 Borrowings under the LMF Commercial facilities 178,627 124,617 (In thousands) February 28, 2021 November 30, 2020 Performance letters of credit $ 803,950 752,096 Surety bonds 3,114,002 3,087,711 Anticipated future costs primarily for site improvements related to performance surety bonds 1,675,503 1,584,642 |
Product Warranty (Tables)
Product Warranty (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Reserve | The activity in the Company’s warranty reserve, which are included in Homebuilding other liabilities, was as follows: Three Months Ended (In thousands) February 28, 2021 February 29, 2020 Warranty reserve, beginning of the period $ 341,765 294,138 Warranties issued 42,928 38,271 Adjustments to pre-existing warranties from changes in estimates (1) 5,641 5,904 Payments (42,234) (50,900) Warranty reserve, end of period $ 348,100 287,413 (1) The adjustments to pre-existing warranties from changes in estimates during the three months ended February 28, 2021 and February 29, 2020 primarily related to specific claims in certain of the Company's homebuilding communities and other adjustments. |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Disclosures (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
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 by the Company at February 28, 2021 and November 30, 2020, 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 28, 2021 November 30, 2020 (In thousands) Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value ASSETS Financial Services: Loans held-for-investment, net Level 3 $ 69,973 70,112 72,626 70,808 Investments held-to-maturity Level 3 163,290 194,485 164,230 196,047 LIABILITIES Homebuilding senior notes and other debts payable, net Level 2 $ 5,976,168 6,529,969 5,955,758 6,581,798 Financial Services notes and other debts payable, net Level 2 963,070 963,960 1,463,919 1,464,850 Lennar Other notes and other debts payable, net Level 2 1,906 1,906 1,906 1,906 |
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, 2021 November 30, 2020 Financial Services Assets: Residential loans held-for-sale Level 2 $ 971,452 1,296,517 LMF Commercial loans held-for-sale Level 3 123,148 193,588 Mortgage servicing rights Level 3 1,499 2,113 Lennar Other: Investments available-for-sale Level 3 $ 41,247 53,497 Residential and LMF Commercial loans held-for-sale in the table above include: February 28, 2021 November 30, 2020 (In thousands) Aggregate Principal Balance Change in Fair Value Aggregate Principal Balance Change in Fair Value Residential loans held-for-sale $ 942,504 28,948 1,232,548 63,969 LMF Commercial loans held-for-sale 129,810 (6,662) 194,362 (774) |
Schedule of Unobservable Inputs Used in Discounted Cash Flow Model to Determine the Fair Value of Communities | February 28, 2021 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 Unobservable inputs As of February 28, 2021 Mortgage prepayment rate 12% Discount rate 14% Delinquency rate 3% 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, 2020 Unobservable inputs Range Average selling price $ 201,000 - 970,000 Absorption rate per quarter (homes) 3 - 15 Discount rate 20% |
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, 2021 February 29, 2020 Changes in fair value included in Financial Services revenues: Loans held-for-sale $ (35,021) (7,493) Mortgage loan commitments (4,915) 14,895 Forward contracts 34,238 (9,361) Changes in fair value included in Lennar Other unrealized gain: Investments in equity securities $ 469,745 — Changes in fair value included in other comprehensive loss, net of tax: Lennar Other investments available-for-sale $ (942) — Financial Services investments available-for-sale — (46) |
Reconciliation Of Beginning And Ending Balance For The Company's Level 3 Recurring Fair Value Measurements | The following table represents 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, 2021 February 29, 2020 (In thousands) Mortgage servicing rights LMF Commercial loans held-for-sale Mortgage servicing rights LMF Commercial loans held-for-sale Beginning balance $ 2,113 193,588 24,679 197,224 Purchases/loan originations 424 219,500 746 412,250 Sales/loan originations sold, including those not settled — (282,965) — (314,439) Disposals/settlements (1,038) — (1,289) — Changes in fair value (1) — (6,767) (11,560) 5,601 Interest and principal paydowns — (208) — (234) Ending balance $ 1,499 123,148 12,576 300,402 (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, 2021 February 29, 2020 (In thousands) Fair Value 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 (1) Level 3 $ 442 — (442) 73,006 59,284 (13,722) Land and land under development (1) Level 3 2,543 2,350 (193) 22,453 11,660 (10,793) (1) Valuation adjustments were included in Homebuilding costs and expenses in the Company's condensed consolidated statements of operations and comprehensive income (loss). Communities with valuation adjustments # of active communities # of communities with potential indicator of impairment # of communities Fair Value (in thousands) Valuation Adjustments (in thousands) At or for the Three Months Ended February 28, 2021 1,158 10 — $ — $ — February 29, 2020 1,253 33 6 45,123 19,944 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Estimated Maximum Exposure To Loss | he Company’s recorded investments in VIEs that are unconsolidated and its estimated maximum exposure to loss were as follows: February 28, 2021 November 30, 2020 (In thousands) Investments in Lennar’s Maximum Investments in Lennar’s Maximum Homebuilding (1) $ 104,527 306,117 89,654 89,828 Multifamily (2) 642,792 706,442 619,540 717,271 Financial Services 163,290 163,290 164,230 164,230 Lennar Other (3) 7,154 7,154 76,023 130,177 $ 917,763 1,183,003 949,447 1,101,506 (1) As of February 28, 2021, the increase in the maximum exposure to loss was related the Company's commitment to fund capital in the Upward America Venture, a single family for rent platform. (2) As of February 28, 2021 and November 30, 2020, the maximum exposure to loss of Multifamily's investments in unconsolidated VIEs was primarily limited to its investments in the unconsolidated VIEs, except with regard to the remaining equity commitment of $54.5 million and $88.1 million, respectively, to fund LMV I and LMV II for future expenditures related to the construction and development of its projects. (3) As of February 28, 2021, the decrease in investments in unconsolidated VIEs and maximum exposure to loss was related to an entity which had a reconsideration event due to the payoff of a note receivable which caused the entity to no longer be considered a VIE. The Company's exposure to losses on its option contracts with third parties and unconsolidated entities were as follows: (Dollars in thousands) February 28, 2021 November 30, 2020 Non-refundable option deposits and pre-acquisition costs $ 711,218 414,154 Letters of credit in lieu of cash deposits under certain land and option contracts 117,974 87,537 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Additional Information About Leases | The following table includes additional information about the Company's leases: (Dollars in thousands) February 28, 2021 November 30, 2020 Right-of-use assets $ 164,604 113,390 Lease liabilities 173,728 122,836 Weighted-average remaining lease term (in years) 2.5 2.6 Weighted-average discount rate 3.0 % 3.1 % |
Future Minimum Payments Under Noncancellable Leases | Future minimum payments under the noncancellable leases in effect at February 28, 2021 were as follows: (Dollars in thousands) Lease Payments 2021 $ 27,789 2022 32,762 2023 26,681 2024 21,188 2025 17,425 2026 and thereafter 71,131 Total future minimum lease payments (1) $ 196,976 Less: Interest (2) 23,248 Present value of lease liabilities (2) $ 173,728 (1) Total future minimum lease payments exclude variable lease costs of $14.3 million and short-term lease costs of $2.2 million. This also does not include minimum lease payments for executed and legally enforceable leases that have not yet commenced. As of February 28, 2021, the minimum lease payments for these leases that have not yet commenced were immaterial. (2) The Company's leases do not include a readily determinable implicit rate. As such, the Company has estimated the discount rate for these leases to determine the present value of lease payments at the lease commencement date or as of December 1, 2019, which was the effective date of ASU 2016-02. As of February 28, 2021, the weighted average remaining lease term and weighted average discount rate used in calculating the lease liabilities were 2.5 years and 3.0%, respectively. The Company recognized the lease liabilities on its condensed consolidated balance sheets within accounts payable or other liabilities of the respective segments. |
Lease, Cost | During the three months ended February 28, 2021 and February 29, 2020, the Company's rental expense and payments on lease liabilities were as follows: (Dollars in thousands) February 28, 2021 February 29, 2020 Rental expense $ 20,707 20,706 Payment on lease liabilities 9,906 17,426 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Nov. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash and cash equivalents held in escrow | $ 752.5 | $ 314.3 | |
Cash and cash equivalents held in escrow, deposit period | 3 days | ||
Nonvested shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Nonvested shares granted (in shares) | 1.4 | 0.9 |
Operating and Reporting Segme_3
Operating and Reporting Segments (Disclosure Of Assets and Liabilities) (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Nov. 30, 2020 | ||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | $ 2,568,799 | $ 2,863,038 | ||
Restricted cash | 26,399 | 69,692 | ||
Receivables, net | 892,460 | 938,079 | ||
Inventories | 17,982,473 | 17,175,148 | ||
Loans held-for-sale | 1,094,600 | 1,490,105 | ||
Investments in equity securities | 666,956 | 68,771 | ||
Investments available-for-sale | 41,247 | 53,497 | ||
Loans held-for-investment, net | 69,973 | 72,626 | ||
Investments held-to-maturity | 163,290 | 164,230 | ||
Investments in unconsolidated entities | 2,097,934 | 2,064,921 | ||
Goodwill | 3,632,058 | 3,632,058 | ||
Other assets | 1,315,791 | 1,343,012 | ||
Total assets | [1] | 30,551,980 | 29,935,177 | |
Senior notes and other debts payable, net | 6,941,144 | 7,421,583 | ||
Other liabilities | 4,593,385 | 4,414,193 | ||
Total liabilities | [2] | 11,534,529 | 11,835,776 | |
Equity securities without readily determinable fair values | 85,100 | 61,600 | ||
Homebuilding | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | [1] | 2,421,411 | 2,703,986 | |
Restricted cash | [1] | 17,878 | 15,211 | |
Receivables, net | [1] | 300,134 | 298,671 | |
Inventories | [1] | 17,692,942 | 16,925,228 | |
Loans held-for-sale | 0 | 0 | ||
Investments in equity securities | 0 | 0 | ||
Investments available-for-sale | 0 | 0 | ||
Loans held-for-investment, net | 0 | 0 | ||
Investments held-to-maturity | 0 | 0 | ||
Investments in unconsolidated entities | 1,077,353 | 953,177 | [1] | |
Goodwill | [1] | 3,442,359 | 3,442,359 | |
Other assets | 1,162,564 | 1,190,793 | [1] | |
Total assets | [1] | 26,114,641 | 25,529,425 | |
Senior notes and other debts payable, net | [2] | 5,976,168 | 5,955,758 | |
Other liabilities | 4,167,833 | 3,969,893 | ||
Total liabilities | [2] | 10,144,001 | 9,925,651 | |
Financial Services | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 117,856 | 116,171 | ||
Restricted cash | 8,521 | 54,481 | ||
Receivables, net | 495,484 | 552,779 | ||
Inventories | 0 | 0 | ||
Loans held-for-sale | 1,094,600 | 1,490,105 | ||
Investments in equity securities | 0 | 0 | ||
Investments available-for-sale | 0 | 0 | ||
Loans held-for-investment, net | 69,973 | 72,626 | ||
Investments held-to-maturity | 163,290 | 164,230 | ||
Investments in unconsolidated entities | 0 | 0 | ||
Goodwill | 189,699 | 189,699 | ||
Other assets | 78,128 | 68,027 | ||
Total assets | [1] | 2,217,551 | 2,708,118 | |
Senior notes and other debts payable, net | 963,070 | 1,463,919 | ||
Other liabilities | 150,013 | 180,329 | ||
Total liabilities | [2] | 1,113,083 | 1,644,248 | |
Multifamily | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 25,644 | 38,963 | ||
Restricted cash | 0 | 0 | ||
Receivables, net | 96,842 | 86,629 | ||
Inventories | 289,531 | 249,920 | ||
Loans held-for-sale | 0 | 0 | ||
Investments in equity securities | 0 | 0 | ||
Investments available-for-sale | 0 | 0 | ||
Loans held-for-investment, net | 0 | 0 | ||
Investments held-to-maturity | 0 | 0 | ||
Investments in unconsolidated entities | 704,964 | 724,647 | ||
Goodwill | 0 | 0 | ||
Other assets | 66,739 | 75,749 | ||
Total assets | [1] | 1,183,720 | 1,175,908 | |
Senior notes and other debts payable, net | 0 | 0 | ||
Other liabilities | 235,651 | 252,911 | ||
Total liabilities | [2] | 235,651 | 252,911 | |
Lennar Other | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 3,888 | 3,918 | ||
Restricted cash | 0 | 0 | ||
Receivables, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Loans held-for-sale | 0 | 0 | ||
Investments in equity securities | 666,956 | 68,771 | ||
Investments available-for-sale | 41,247 | 53,497 | ||
Loans held-for-investment, net | 0 | 0 | ||
Investments held-to-maturity | 0 | 0 | ||
Investments in unconsolidated entities | 315,617 | 387,097 | ||
Goodwill | 0 | 0 | ||
Other assets | 8,360 | 8,443 | ||
Total assets | [1] | 1,036,068 | 521,726 | |
Senior notes and other debts payable, net | 1,906 | 1,906 | ||
Other liabilities | 39,888 | 11,060 | ||
Total liabilities | [2] | $ 41,794 | $ 12,966 | |
[1] | Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations ("ASC 810"), the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities ("VIEs") and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations. As of February 28, 2021, total assets include $1.0 billion related to consolidated VIEs of which $39.8 million is included in Homebuilding cash and cash equivalents, $14.2 million in Homebuilding finished homes and construction in progress, $516.9 million in Homebuilding land and land under development, $288.6 million in Homebuilding consolidated inventory not owned, $1.7 million in Homebuilding investments in unconsolidated entities, $145.8 million in Homebuilding other assets and $17.8 million in Multifamily assets. As of November 30, 2020, total assets include $1.1 billion related to consolidated VIEs of which $32.1 million is included in Homebuilding cash and cash equivalents, $0.1 million in Homebuilding receivables, net, $14.2 million in Homebuilding finished homes and construction in progress, $486.8 million in Homebuilding land and land under development, $426.3 million in Homebuilding consolidated inventory not owned, $1.6 million in Homebuilding investments in unconsolidated entities, $120.6 million in Homebuilding other assets and $39.9 million in Multifamily assets. | |||
[2] | Under certain provisions of ASC 810, the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated VIEs and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations. As of February 28, 2021, total liabilities include $417.3 million related to consolidated VIEs as to which there was no recourse against the Company, of which $33.4 million is included in Homebuilding accounts payable, $227.2 million in Homebuilding liabilities related to consolidated inventory not owned, $146.6 million in Homebuilding senior notes and other debts payable, $9.9 million in Homebuilding other liabilities and $0.2 million in Multifamily liabilities. As of November 30, 2020, total liabilities include $528.5 million related to consolidated VIEs as to which there was no recourse against the Company, of which $28.4 million is included in Homebuilding accounts payable, $351.4 million in Homebuilding liabilities related to consolidated inventory not owned, $129.1 million in Homebuilding senior notes and other debt payable, $9.9 million in Homebuilding other liabilities and $9.8 million in Multifamily liabilities. |
Operating and Reporting Segme_4
Operating and Reporting Segments (Financial Information Related to Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 5,325,468 | $ 4,505,337 |
Operating earnings (loss) | 1,449,859 | 510,399 |
Corporate general and administrative expenses | 110,531 | 82,634 |
Charitable foundation contribution | 12,314 | 4,213 |
Homebuilding | ||
Segment Reporting Information [Line Items] | ||
Revenues | 4,943,056 | 4,172,116 |
Operating earnings (loss) | 833,180 | 460,398 |
Operating Segments | Homebuilding | ||
Segment Reporting Information [Line Items] | ||
Revenues | 4,943,056 | 4,172,116 |
Operating earnings (loss) | 833,180 | 460,398 |
Corporate general and administrative expenses | 0 | 0 |
Charitable foundation contribution | 0 | 0 |
Operating Segments | Financial Services | ||
Segment Reporting Information [Line Items] | ||
Revenues | 244,069 | 198,661 |
Operating earnings (loss) | 146,207 | 47,317 |
Corporate general and administrative expenses | 0 | 0 |
Charitable foundation contribution | 0 | 0 |
Operating Segments | Multifamily | ||
Segment Reporting Information [Line Items] | ||
Revenues | 131,443 | 132,617 |
Operating earnings (loss) | (874) | 1,785 |
Corporate general and administrative expenses | 0 | 0 |
Charitable foundation contribution | 0 | 0 |
Operating Segments | Lennar Other | ||
Segment Reporting Information [Line Items] | ||
Revenues | 6,900 | 1,943 |
Operating earnings (loss) | 471,346 | 899 |
Corporate general and administrative expenses | 0 | 0 |
Charitable foundation contribution | 0 | 0 |
Corporate and Unallocated | ||
Segment Reporting Information [Line Items] | ||
Revenues | 0 | 0 |
Operating earnings (loss) | 0 | 0 |
Corporate general and administrative expenses | 110,531 | 82,634 |
Charitable foundation contribution | $ 12,314 | $ 4,213 |
Operating and Reporting Segme_5
Operating and Reporting Segments (Homebuilding Assets) (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Nov. 30, 2020 | |
Segment Reporting Information [Line Items] | |||
Assets | [1] | $ 30,551,980 | $ 29,935,177 |
Homebuilding | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 26,114,641 | 25,529,425 |
Operating Segments | East | |||
Segment Reporting Information [Line Items] | |||
Assets | 5,540,055 | 5,308,114 | |
Operating Segments | Central | |||
Segment Reporting Information [Line Items] | |||
Assets | 3,561,065 | 3,438,600 | |
Operating Segments | Texas | |||
Segment Reporting Information [Line Items] | |||
Assets | 2,353,652 | 2,150,916 | |
Operating Segments | West | |||
Segment Reporting Information [Line Items] | |||
Assets | 11,101,983 | 10,504,374 | |
Operating Segments | Other | |||
Segment Reporting Information [Line Items] | |||
Assets | 1,314,990 | 1,301,618 | |
Corporate and Unallocated | |||
Segment Reporting Information [Line Items] | |||
Assets | 2,242,896 | 2,825,803 | |
Operating Segments And Corporate | Homebuilding | |||
Segment Reporting Information [Line Items] | |||
Assets | $ 26,114,641 | $ 25,529,425 | |
[1] | Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations ("ASC 810"), the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities ("VIEs") and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations. As of February 28, 2021, total assets include $1.0 billion related to consolidated VIEs of which $39.8 million is included in Homebuilding cash and cash equivalents, $14.2 million in Homebuilding finished homes and construction in progress, $516.9 million in Homebuilding land and land under development, $288.6 million in Homebuilding consolidated inventory not owned, $1.7 million in Homebuilding investments in unconsolidated entities, $145.8 million in Homebuilding other assets and $17.8 million in Multifamily assets. As of November 30, 2020, total assets include $1.1 billion related to consolidated VIEs of which $32.1 million is included in Homebuilding cash and cash equivalents, $0.1 million in Homebuilding receivables, net, $14.2 million in Homebuilding finished homes and construction in progress, $486.8 million in Homebuilding land and land under development, $426.3 million in Homebuilding consolidated inventory not owned, $1.6 million in Homebuilding investments in unconsolidated entities, $120.6 million in Homebuilding other assets and $39.9 million in Multifamily assets. |
Operating and Reporting Segme_6
Operating and Reporting Segments (Homebuilding Financial Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 5,325,468 | $ 4,505,337 |
Operating earnings (loss) | 1,449,859 | 510,399 |
East | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,355,942 | 1,152,332 |
Operating earnings (loss) | 262,083 | 148,754 |
Central | ||
Segment Reporting Information [Line Items] | ||
Revenues | 928,442 | 789,510 |
Operating earnings (loss) | 132,023 | 55,723 |
Texas | ||
Segment Reporting Information [Line Items] | ||
Revenues | 644,078 | 473,228 |
Operating earnings (loss) | 129,643 | 53,073 |
West | ||
Segment Reporting Information [Line Items] | ||
Revenues | 2,009,579 | 1,748,769 |
Operating earnings (loss) | 321,706 | 224,907 |
Other | ||
Segment Reporting Information [Line Items] | ||
Revenues | 5,015 | 8,277 |
Operating earnings (loss) | (12,275) | (22,059) |
Homebuilding | ||
Segment Reporting Information [Line Items] | ||
Revenues | 4,943,056 | 4,172,116 |
Operating earnings (loss) | $ 833,180 | $ 460,398 |
Operating and Reporting Segme_7
Operating and Reporting Segments (Disclosure of Facilities) (Details) - Financial Services - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Nov. 30, 2020 | |
Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum Aggregate Commitment | $ 2,111,438 | |
Residential facilities maturing March 2021 | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum Aggregate Commitment | 100,000 | |
Residential facilities maturing June 2021 | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum Aggregate Commitment | 600,000 | |
Residential facilities maturing July 2021 | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum Aggregate Commitment | 200,000 | |
Residential facilities maturing December 2021 | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum Aggregate Commitment | 500,000 | |
Residential facilities | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum Aggregate Commitment | 1,400,000 | |
Borrowings under facility | 631,784 | $ 1,185,797 |
Collateral under facilities | 653,698 | 1,231,619 |
Commercial facilities maturing November 2021 | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum Aggregate Commitment | 100,000 | |
Commercial facilities maturing December 2021 | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum Aggregate Commitment | 611,438 | |
Commercial facilities | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum Aggregate Commitment | $ 711,438 | |
Warehouse Repurchase Facility | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Facility, term | 364 days | |
Warehouse Repurchase Facility | Commercial facilities | ||
Line of Credit Facility [Line Items] | ||
Borrowings under facility | $ 178,627 | $ 124,617 |
Operating and Reporting Segme_8
Operating and Reporting Segments (Narrative) (Details) shares in Thousands | 3 Months Ended | |
Feb. 28, 2021USD ($)earnoutshares | Feb. 29, 2020USD ($) | |
Disposal Group, Held-for-sale, Not Discontinued Operations | Sunnova Energy International Inc. | ||
Segment Reporting Information [Line Items] | ||
Number of shares to be received (in shares) | shares | 7,220 | |
Number of shares to be received upon closing (in shares) | shares | 3,330 | |
Number of earnout agreements | earnout | 2 | |
Financial Services | Warehouse Repurchase Facility | ||
Segment Reporting Information [Line Items] | ||
Collateral percentage | 80.00% | |
Lennar Other | ||
Segment Reporting Information [Line Items] | ||
Lennar Other unrealized gain | $ | $ 469,700,000 | |
CMBS | Financial Services | ||
Segment Reporting Information [Line Items] | ||
Impairment charges for CMBS securities | $ | $ 0 | $ 0 |
Operating and Reporting Segme_9
Operating and Reporting Segments Operating and Reporting Segments (Activity in Loan Origination Liabilities) (Details) - Loss origination liability - Financial Services - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Loss Contingency Accrual [Roll Forward] | ||
Loan origination liabilities, beginning of period | $ 7,569 | $ 9,364 |
Provision for losses | 966 | 776 |
Payments/settlements | (102) | (144) |
Loan origination liabilities, end of period | $ 8,433 | $ 9,996 |
Operating and Reporting Segm_10
Operating and Reporting Segments (Loans Held-for-Sale) (Details) - Financial Services $ in Thousands | 3 Months Ended | |
Feb. 28, 2021USD ($)transaction | Feb. 29, 2020USD ($)transaction | |
Segment Reporting Information [Line Items] | ||
Originations | $ 219,500 | $ 412,250 |
Sold | $ 282,965 | $ 314,439 |
Securitizations | transaction | 2 | 2 |
Operating and Reporting Segm_11
Operating and Reporting Segments (Commercial Mortgage-Backed Securities) (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Nov. 30, 2020 |
Segment Reporting Information [Line Items] | ||
Investments held-to-maturity | $ 163,290 | $ 164,230 |
Outstanding debt, net of debt issuance costs | 6,941,144 | 7,421,583 |
Financial Services | ||
Segment Reporting Information [Line Items] | ||
Investments held-to-maturity | 163,290 | 164,230 |
Outstanding debt, net of debt issuance costs | 963,070 | 1,463,919 |
Financial Services | Financing Agreement to Purchase Commercial Mortgage Backed Securities | Secured Debt | ||
Segment Reporting Information [Line Items] | ||
Outstanding debt, net of debt issuance costs | $ 152,659 | $ 153,505 |
Incurred interest rate | 3.40% | 3.40% |
CMBS | Financial Services | ||
Segment Reporting Information [Line Items] | ||
Investments held-to-maturity | $ 163,290 | $ 164,230 |
Operating and Reporting Segm_12
Operating and Reporting Segments (Fair Value Inputs for Commercial Mortgage-Backed Securities) (Details) - CMBS - Financial Services | 3 Months Ended |
Feb. 28, 2021 | |
Minimum | |
Segment Reporting Information [Line Items] | |
Discount rates at purchase | 6.00% |
Coupon rates | 2.00% |
Maximum | |
Segment Reporting Information [Line Items] | |
Discount rates at purchase | 84.00% |
Coupon rates | 5.30% |
Investments in Unconsolidated_3
Investments in Unconsolidated Entities (Homebuilding Unconsolidated Entities) (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Nov. 30, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated entities | $ 2,097,934 | $ 2,064,921 | |
FivePoint Unconsolidated Entity | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated entities | $ 390,300 | 392,100 | |
Unconsolidated entities ownership percentage | 40.00% | ||
Homebuilding | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated entities | $ 1,077,353 | 953,177 | [1] |
Underlying equity in unconsolidated partners' net assets | $ 1,395,393 | $ 1,269,701 | |
[1] | Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations ("ASC 810"), the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities ("VIEs") and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations. As of February 28, 2021, total assets include $1.0 billion related to consolidated VIEs of which $39.8 million is included in Homebuilding cash and cash equivalents, $14.2 million in Homebuilding finished homes and construction in progress, $516.9 million in Homebuilding land and land under development, $288.6 million in Homebuilding consolidated inventory not owned, $1.7 million in Homebuilding investments in unconsolidated entities, $145.8 million in Homebuilding other assets and $17.8 million in Multifamily assets. As of November 30, 2020, total assets include $1.1 billion related to consolidated VIEs of which $32.1 million is included in Homebuilding cash and cash equivalents, $0.1 million in Homebuilding receivables, net, $14.2 million in Homebuilding finished homes and construction in progress, $486.8 million in Homebuilding land and land under development, $426.3 million in Homebuilding consolidated inventory not owned, $1.6 million in Homebuilding investments in unconsolidated entities, $120.6 million in Homebuilding other assets and $39.9 million in Multifamily assets. |
Investments in Unconsolidated_4
Investments in Unconsolidated Entities (Narrative) (Details) - USD ($) $ in Millions | Apr. 01, 2021 | Feb. 28, 2021 | Nov. 30, 2020 |
Upward America Venture | Subsequent Event | |||
Schedule of Equity Method Investments [Line Items] | |||
Total equity commitments | $ 1,250 | ||
Total acquisition funding | $ 4,000 | ||
Multifamily | |||
Schedule of Equity Method Investments [Line Items] | |||
Non-recourse debt with completion guarantees | $ 660 | $ 722.9 |
Investments in Unconsolidated_5
Investments in Unconsolidated Entities (Multifamily Income and Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||
Revenues | $ 5,325,468 | $ 4,505,337 |
General Contractor Services | Multifamily | Unconsolidated Entities | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenues | 115,399 | 93,894 |
Cost of revenue | 110,453 | 90,181 |
Management Fee | Multifamily | Unconsolidated Entities | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenues | $ 14,871 | $ 13,823 |
Investments in Unconsolidated_6
Investments in Unconsolidated Entities (Details of Multifamily Unconsolidated Entities) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Nov. 30, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||
Lennar's carrying value of investments | $ 2,097,934 | $ 2,064,921 | |
Distributions to Lennar during the three months ended February 28, 2021 | 4,234 | $ 36,922 | |
Multifamily | |||
Schedule of Equity Method Investments [Line Items] | |||
Lennar's carrying value of investments | 704,964 | $ 724,647 | |
Multifamily | LMV I | |||
Schedule of Equity Method Investments [Line Items] | |||
Lennar's carrying value of investments | 321,262 | ||
Equity commitments | 2,204,016 | ||
Equity commitments called | 2,140,646 | ||
Lennar's equity commitments | 504,016 | ||
Lennar's equity commitments called | 496,804 | ||
Lennar's remaining commitments | 7,212 | ||
Distributions to Lennar during the three months ended February 28, 2021 | 4,393 | ||
Multifamily | LMV II | |||
Schedule of Equity Method Investments [Line Items] | |||
Lennar's carrying value of investments | 318,578 | ||
Equity commitments | 1,257,700 | ||
Equity commitments called | 1,105,170 | ||
Lennar's equity commitments | 381,000 | ||
Lennar's equity commitments called | 333,706 | ||
Lennar's remaining commitments | 47,294 | ||
Distributions to Lennar during the three months ended February 28, 2021 | $ 0 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule Of Changes In Equity) (Details) - USD ($) | Feb. 12, 2021 | Feb. 28, 2021 | Nov. 30, 2020 | Aug. 31, 2020 | Feb. 29, 2020 | Jan. 31, 2021 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance, beginning | $ 18,099,401,000 | [1] | $ 16,033,830,000 | |||||
Net earnings (including net earnings attributable to noncontrolling interests) | 1,016,909,000 | 391,223,000 | ||||||
Employee stock and directors plans | (26,279,000) | (7,424,000) | ||||||
Purchases of treasury stock | (43,110,000) | (288,515,000) | ||||||
Amortization of restricted stock | 48,818,000 | 31,855,000 | ||||||
Cash dividends | (77,843,000) | (39,240,000) | ||||||
Receipts related to noncontrolling interests | 8,896,000 | 88,913,000 | ||||||
Payments related to noncontrolling interests | (11,397,000) | (16,734,000) | ||||||
Non-cash activity related to noncontrolling interests | 2,998,000 | |||||||
Non-cash consolidations/deconsolidations, net | (485,000) | |||||||
Total other comprehensive loss, net of tax | (942,000) | (46,000) | ||||||
Balance, ending | 19,017,451,000 | [1] | $ 18,099,401,000 | [1] | 16,193,377,000 | |||
Cash dividends (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.125 | |||||
Stock repurchase program, authorized value | $ 1,000,000,000 | |||||||
Stock repurchase program, authorized shares (in shares) | 25,000,000 | |||||||
Additional Paid - in Capital | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance, beginning | 8,676,056,000 | 8,578,219,000 | ||||||
Employee stock and directors plans | (59,000) | (130,000) | ||||||
Amortization of restricted stock | 48,818,000 | 31,855,000 | ||||||
Non-cash activity related to noncontrolling interests | (623,000) | |||||||
Balance, ending | 8,724,192,000 | $ 8,676,056,000 | 8,609,944,000 | |||||
Treasury Stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance, beginning | (1,279,227,000) | (957,857,000) | ||||||
Employee stock and directors plans | (26,373,000) | (7,384,000) | ||||||
Purchases of treasury stock | (43,110,000) | (288,515,000) | ||||||
Balance, ending | (1,348,710,000) | (1,279,227,000) | (1,253,756,000) | |||||
Accumulated Other Comprehensive Loss | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance, beginning | (805,000) | 498,000 | ||||||
Total other comprehensive loss, net of tax | (942,000) | (46,000) | ||||||
Balance, ending | (1,747,000) | (805,000) | 452,000 | |||||
Retained Earnings | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance, beginning | 10,564,994,000 | 8,295,001,000 | ||||||
Net earnings (including net earnings attributable to noncontrolling interests) | 1,001,369,000 | 398,452,000 | ||||||
Cash dividends | (77,843,000) | (39,240,000) | ||||||
Balance, ending | 11,488,520,000 | 10,564,994,000 | 8,654,213,000 | |||||
Noncontrolling Interests | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance, beginning | 104,545,000 | 84,313,000 | ||||||
Net earnings (including net earnings attributable to noncontrolling interests) | 15,540,000 | (7,229,000) | ||||||
Receipts related to noncontrolling interests | 8,896,000 | 88,913,000 | ||||||
Payments related to noncontrolling interests | (11,397,000) | (16,734,000) | ||||||
Non-cash activity related to noncontrolling interests | 3,621,000 | |||||||
Non-cash consolidations/deconsolidations, net | (485,000) | |||||||
Balance, ending | $ 121,205,000 | 104,545,000 | $ 148,778,000 | |||||
Class A Common Stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Shares repurchased during period (in shares) | 510,000 | 4,250,000 | ||||||
Principal | $ 43,100,000 | $ 282,274,000 | ||||||
Average share price of shares repurchased (in dollars per share) | $ 84.51 | $ 66.42 | ||||||
Class A Common Stock | Common Stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance, beginning | $ 29,894,000 | $ 29,712,000 | ||||||
Employee stock and directors plans | 153,000 | 90,000 | ||||||
Balance, ending | $ 30,047,000 | 29,894,000 | $ 29,802,000 | |||||
Class B Common Stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Shares repurchased during period (in shares) | 0 | 115,000 | ||||||
Principal | $ 0 | $ 6,155,000 | ||||||
Average share price of shares repurchased (in dollars per share) | $ 0 | $ 53.52 | ||||||
Class B Common Stock | Common Stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance, beginning | $ 3,944,000 | $ 3,944,000 | ||||||
Balance, ending | $ 3,944,000 | $ 3,944,000 | $ 3,944,000 | |||||
[1] | Under certain provisions of ASC 810, the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated VIEs and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations. As of February 28, 2021, total liabilities include $417.3 million related to consolidated VIEs as to which there was no recourse against the Company, of which $33.4 million is included in Homebuilding accounts payable, $227.2 million in Homebuilding liabilities related to consolidated inventory not owned, $146.6 million in Homebuilding senior notes and other debts payable, $9.9 million in Homebuilding other liabilities and $0.2 million in Multifamily liabilities. As of November 30, 2020, total liabilities include $528.5 million related to consolidated VIEs as to which there was no recourse against the Company, of which $28.4 million is included in Homebuilding accounts payable, $351.4 million in Homebuilding liabilities related to consolidated inventory not owned, $129.1 million in Homebuilding senior notes and other debt payable, $9.9 million in Homebuilding other liabilities and $9.8 million in Multifamily liabilities. |
Income Taxes (Income Tax Benefi
Income Taxes (Income Tax Benefit (Provision) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 310,105 | $ 32,329 |
Effective tax rate | 23.60% | 7.50% |
Schedule of Basic and Diluted E
Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Numerator: | ||
Net earnings attributable to Lennar | $ 1,001,369 | $ 398,452 |
Less: distributed earnings allocated to nonvested shares | 630 | 334 |
Less: undistributed earnings allocated to nonvested shares | 11,624 | 4,092 |
Numerator for basic earnings per share | 989,115 | 394,026 |
Less: net amount attributable to noncontrolling interests in Rialto's Carried Interest Incentive Plan | 553 | 0 |
Numerator for diluted earnings per share | $ 988,562 | $ 394,026 |
Denominator: | ||
Denominator for basic earnings per share-weighted average common shares outstanding (shares) | 309,020 | 311,213 |
Effect of dilutive securities: | ||
Share-based payments (shares) | 0 | 2 |
Denominator for diluted earnings per share-weighted average common shares outstanding (shares) | 309,020 | 311,215 |
Basic earnings per share (in dollars per share) | $ 3.20 | $ 1.27 |
Diluted earnings per share (in dollars per share) | $ 3.20 | $ 1.27 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Options to purchase outstanding and anti-dilutive shares (in shares) | 0 | 0 |
Homebuilding Senior Notes and_3
Homebuilding Senior Notes and Other Debts Payable (Schedule of Senior Notes and Other Debts Payable) (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Nov. 30, 2020 | |
Debt Instrument [Line Items] | |||
Senior notes and other debts payable, net | $ 6,941,144 | $ 7,421,583 | |
Homebuilding | |||
Debt Instrument [Line Items] | |||
Senior notes and other debts payable, net | [1] | 5,976,168 | 5,955,758 |
Homebuilding | Senior Notes | 6.25% senior notes due December 2021 | |||
Debt Instrument [Line Items] | |||
Senior notes and other debts payable, net | $ 303,963 | 305,221 | |
Interest rate | 6.25% | ||
Homebuilding | Senior Notes | 4.125% senior notes due 2022 | |||
Debt Instrument [Line Items] | |||
Senior notes and other debts payable, net | $ 599,123 | 598,876 | |
Interest rate | 4.125% | ||
Homebuilding | Senior Notes | 5.375% senior notes due 2022 | |||
Debt Instrument [Line Items] | |||
Senior notes and other debts payable, net | $ 254,628 | 255,342 | |
Interest rate | 5.375% | ||
Homebuilding | Senior Notes | 4.750% senior notes due 2022 | |||
Debt Instrument [Line Items] | |||
Senior notes and other debts payable, net | $ 573,030 | 572,724 | |
Interest rate | 4.75% | ||
Homebuilding | Senior Notes | 4.875% senior notes due December 2023 | |||
Debt Instrument [Line Items] | |||
Senior notes and other debts payable, net | $ 397,749 | 397,347 | |
Interest rate | 4.875% | ||
Homebuilding | Senior Notes | 4.500% senior notes due 2024 | |||
Debt Instrument [Line Items] | |||
Senior notes and other debts payable, net | $ 647,709 | 647,528 | |
Interest rate | 4.50% | ||
Homebuilding | Senior Notes | 5.875% senior notes due 2024 | |||
Debt Instrument [Line Items] | |||
Senior notes and other debts payable, net | $ 442,315 | 443,484 | |
Interest rate | 5.875% | ||
Homebuilding | Senior Notes | 4.750% senior notes due 2025 | |||
Debt Instrument [Line Items] | |||
Senior notes and other debts payable, net | $ 498,113 | 498,002 | |
Interest rate | 4.75% | ||
Homebuilding | Senior Notes | 5.25% senior notes due 2026 | |||
Debt Instrument [Line Items] | |||
Senior notes and other debts payable, net | $ 406,406 | 406,709 | |
Interest rate | 5.25% | ||
Homebuilding | Senior Notes | 5.00% senior notes due 2027 | |||
Debt Instrument [Line Items] | |||
Senior notes and other debts payable, net | $ 352,412 | 352,508 | |
Interest rate | 5.00% | ||
Homebuilding | Senior Notes | 4.75% senior notes due 2027 | |||
Debt Instrument [Line Items] | |||
Senior notes and other debts payable, net | $ 894,948 | 894,760 | |
Interest rate | 4.75% | ||
Homebuilding | Mortgage notes on land and other debt | |||
Debt Instrument [Line Items] | |||
Senior notes and other debts payable, net | $ 605,772 | $ 583,257 | |
[1] | Under certain provisions of ASC 810, the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated VIEs and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations. As of February 28, 2021, total liabilities include $417.3 million related to consolidated VIEs as to which there was no recourse against the Company, of which $33.4 million is included in Homebuilding accounts payable, $227.2 million in Homebuilding liabilities related to consolidated inventory not owned, $146.6 million in Homebuilding senior notes and other debts payable, $9.9 million in Homebuilding other liabilities and $0.2 million in Multifamily liabilities. As of November 30, 2020, total liabilities include $528.5 million related to consolidated VIEs as to which there was no recourse against the Company, of which $28.4 million is included in Homebuilding accounts payable, $351.4 million in Homebuilding liabilities related to consolidated inventory not owned, $129.1 million in Homebuilding senior notes and other debt payable, $9.9 million in Homebuilding other liabilities and $9.8 million in Multifamily liabilities. |
Homebuilding Senior Notes and_4
Homebuilding Senior Notes and Other Debts Payable (Narrative) (Details) - Homebuilding - USD ($) | 3 Months Ended | |
Feb. 28, 2021 | Nov. 30, 2020 | |
Unsecured revolving credit facility | Credit Agreement | ||
Debt Instrument [Line Items] | ||
Maximum borrowings | $ 2,500,000,000 | $ 2,400,000,000 |
Increase in maximum borrowings | 100,000,000 | |
Accordion feature | 300,000,000 | |
Maximum borrowing capacity after accordion feature | 2,800,000,000 | |
Letter of Credit | Credit Agreement | ||
Debt Instrument [Line Items] | ||
Maximum borrowings | 500,000,000 | |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt issuance cost | $ 14,800,000 | $ 15,900,000 |
Homebuilding Senior Notes and_5
Homebuilding Senior Notes and Other Debts Payable (Letter of Credit Facilities) (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Nov. 30, 2020 |
Performance letters of credit | ||
Line of Credit Facility [Line Items] | ||
Letters of credit | $ 803,950 | $ 752,096 |
Surety bonds | ||
Line of Credit Facility [Line Items] | ||
Letters of credit | 3,114,002 | 3,087,711 |
Anticipated future costs primarily for site improvements related to performance surety bonds | ||
Line of Credit Facility [Line Items] | ||
Letters of credit | $ 1,675,503 | $ 1,584,642 |
Product Warranty (Schedule of P
Product Warranty (Schedule of Product Warranty Reserve) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Warranty reserve, beginning of the period | $ 341,765 | $ 294,138 |
Warranties issued | 42,928 | 38,271 |
Adjustments to pre-existing warranties from changes in estimates | 5,641 | 5,904 |
Payments | (42,234) | (50,900) |
Warranty reserve, end of period | $ 348,100 | $ 287,413 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Disclosures - (Carrying Amounts And Estimated Fair Value Of Financial Instruments) (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Nov. 30, 2020 |
Financial Services | Level 3 | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable and loans held-for-investment | $ 69,973 | $ 72,626 |
Investments held-to-maturity | 163,290 | 164,230 |
Financial Services | Level 3 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable and loans held-for-investment | 70,112 | 70,808 |
Investments held-to-maturity | 194,485 | 196,047 |
Financial Services | Level 2 | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | 963,070 | 1,463,919 |
Financial Services | Level 2 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | 963,960 | 1,464,850 |
Homebuilding | Level 2 | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | 5,976,168 | 5,955,758 |
Homebuilding | Level 2 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | 6,529,969 | 6,581,798 |
Lennar Other | Level 2 | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | 1,906 | 1,906 |
Lennar Other | Level 2 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | $ 1,906 | $ 1,906 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Disclosures - (Fair Value Measured On Recurring Basis) (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Nov. 30, 2020 |
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Investments available-for-sale | $ 41,247 | $ 53,497 |
Financial Services | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Investments available-for-sale | 0 | 0 |
Financial Services | Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Mortgage servicing rights | 1,499 | 2,113 |
Lennar Other | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Investments available-for-sale | 41,247 | 53,497 |
Lennar Other | Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Investments available-for-sale | 41,247 | 53,497 |
Residential | Financial Services | Fair Value, Measurements, Recurring | Loans held-for-sale | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Aggregate principal balance | 942,504 | 1,232,548 |
Aggregate fair value of loans (below) in excess of principal balance | 28,948 | 63,969 |
Residential | Financial Services | Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 971,452 | 1,296,517 |
Commercial | Financial Services | Fair Value, Measurements, Recurring | Loans held-for-sale | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Aggregate principal balance | 129,810 | 194,362 |
Aggregate fair value of loans (below) in excess of principal balance | (6,662) | (774) |
Commercial | Financial Services | Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | $ 123,148 | $ 193,588 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Disclosures - (Mortgage Servicing Rights Unobservable Inputs) (Details) - Financial Services - Level 3 | Feb. 28, 2021 |
Mortgage prepayment rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Unobservable inputs for valuation of mortgage servicing rights | 0.12 |
Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Unobservable inputs for valuation of mortgage servicing rights | 0.14 |
Delinquency rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Unobservable inputs for valuation of mortgage servicing rights | 0.03 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Disclosures - (Schedule Of Gains And Losses Of Financial Instruments) (Details) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Changes in fair value included in other comprehensive income (loss), net of tax | $ (942) | $ (46) |
Fair Value, Measurements, Recurring | Lennar Other | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Changes in fair value included in other comprehensive income (loss), net of tax | (942) | 0 |
Fair Value, Measurements, Recurring | Lennar Other | Forward contracts | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Lennar Other unrealized gain | 469,745 | 0 |
Fair Value, Measurements, Recurring | Financial Services | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Changes in fair value included in other comprehensive income (loss), net of tax | 0 | (46) |
Fair Value, Measurements, Recurring | Financial Services | Loans held-for-sale | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Lennar Other unrealized gain | (35,021) | (7,493) |
Fair Value, Measurements, Recurring | Financial Services | Mortgage loan commitments | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Lennar Other unrealized gain | (4,915) | 14,895 |
Fair Value, Measurements, Recurring | Financial Services | Forward contracts | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Lennar Other unrealized gain | $ 34,238 | $ (9,361) |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Disclosures - (Reconciliation Of Beginning And Ending Balance For The Company's Level 3 Recurring Fair Value Measurements) (Details) - Financial Services - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Mortgage servicing rights | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 2,113 | $ 24,679 |
Purchases/loan originations | 424 | 746 |
Sales/loan originations sold, including those not settled | 0 | 0 |
Disposals/settlements | (1,038) | (1,289) |
Changes in fair value | 0 | (11,560) |
Interest and principal paydowns | 0 | 0 |
Ending balance | 1,499 | 12,576 |
LMF Commercial loans held-for-sale | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 193,588 | 197,224 |
Purchases/loan originations | 219,500 | 412,250 |
Sales/loan originations sold, including those not settled | (282,965) | (314,439) |
Disposals/settlements | 0 | 0 |
Changes in fair value | (6,767) | 5,601 |
Interest and principal paydowns | (208) | (234) |
Ending balance | $ 123,148 | $ 300,402 |
Financial Instruments and Fai_8
Financial Instruments and Fair Value Disclosures - (Fair Value Assets Measured On Nonrecurring Basis) (Details) - Fair Value, Measurements, Nonrecurring - Level 3 - Homebuilding - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Finished homes and construction in progress, carrying value | $ 442 | $ 73,006 |
Finished homes and construction in progress, fair value | 0 | 59,284 |
Finished homes and construction in progress, total losses, net | (442) | (13,722) |
Land and land under development, carrying value | 2,543 | 22,453 |
Land and land under development, fair value | 2,350 | 11,660 |
Land and land under development, total losses, net | $ (193) | $ (10,793) |
Financial Instruments and Fai_9
Financial Instruments and Fair Value Disclosures - (Narrative) (Details) - community | Feb. 28, 2021 | Feb. 29, 2020 |
Fair Value Disclosures [Abstract] | ||
Active communities | 1,158 | 1,253 |
Financial Instruments and Fa_10
Financial Instruments and Fair Value Disclosures - (Communities with Indicators for Impairment) (Details) $ in Thousands | 3 Months Ended | |
Feb. 28, 2021USD ($)community | Feb. 29, 2020USD ($)community | |
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Active communities | 1,158 | 1,253 |
Number of Communities with potential indicator of impairment | 10 | 33 |
Number of communities with valuation adjustments | 0 | 6 |
Valuation adjustments | $ | $ 0 | $ 19,944 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Fair value of communities with valuation adjustments | $ | $ 0 | $ 45,123 |
Financial Instruments and Fa_11
Financial Instruments and Fair Value Disclosures - (Unobservable Inputs Used in Discounted Cash Flow Model to Determine the Fair Value of Communities) (Details) $ / homes in Thousands | Feb. 28, 2021 | Feb. 29, 2020$ / homes |
Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs | 0.20 | |
Minimum | Average selling price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs | 201,000 | |
Minimum | Absorption rate per quarter (homes) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs | 3 | |
Maximum | Average selling price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs | 970,000 | |
Maximum | Absorption rate per quarter (homes) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs | 15 |
Variable Interest Entities (Est
Variable Interest Entities (Estimated Maximum Exposure To Loss) (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands | Feb. 28, 2021 | Nov. 30, 2020 |
Variable Interest Entity [Line Items] | ||
Investments in Unconsolidated VIEs | $ 917,763 | $ 949,447 |
Lennar’s Maximum Exposure to Loss | 1,183,003 | 1,101,506 |
Homebuilding | ||
Variable Interest Entity [Line Items] | ||
Investments in Unconsolidated VIEs | 104,527 | 89,654 |
Lennar’s Maximum Exposure to Loss | 306,117 | 89,828 |
Multifamily | ||
Variable Interest Entity [Line Items] | ||
Investments in Unconsolidated VIEs | 642,792 | 619,540 |
Lennar’s Maximum Exposure to Loss | 706,442 | 717,271 |
Multifamily | Equity Commitments | ||
Variable Interest Entity [Line Items] | ||
Obligations related to VIEs | 54,500 | 88,100 |
Financial Services | ||
Variable Interest Entity [Line Items] | ||
Investments in Unconsolidated VIEs | 163,290 | 164,230 |
Lennar’s Maximum Exposure to Loss | 163,290 | 164,230 |
Lennar Other | ||
Variable Interest Entity [Line Items] | ||
Investments in Unconsolidated VIEs | 7,154 | 76,023 |
Lennar’s Maximum Exposure to Loss | $ 7,154 | $ 130,177 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) $ in Millions | 3 Months Ended |
Feb. 28, 2021USD ($) | |
Variable Interest Entity, Not Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
Decrease in consolidated inventory | $ 28.8 |
Variable Interest Entities (Exp
Variable Interest Entities (Exposure to Losses) (Details) - Variable Interest Entity, Not Primary Beneficiary Including Third Parties - USD ($) $ in Thousands | Feb. 28, 2021 | Nov. 30, 2020 |
Variable Interest Entity [Line Items] | ||
Non-refundable option deposits and pre-acquisition costs | $ 711,218 | $ 414,154 |
Financial Standby Letters of Credit | ||
Variable Interest Entity [Line Items] | ||
Letters of credit in lieu of cash deposits under certain land and option contracts | $ 117,974 | $ 87,537 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities - (Additional Information About Leases) (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Nov. 30, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Right-of-use assets | $ 164,604 | $ 113,390 |
Lease liabilities | $ 173,728 | $ 122,836 |
Weighted-average remaining lease term (in years) | 2 years 6 months | 2 years 7 months 6 days |
Weighted-average discount rate | 3.00% | 3.10% |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - (Future MInimum Payments Under Noncancellable Leases) (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Nov. 30, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
2021 | $ 27,789 | |
2022 | 32,762 | |
2023 | 26,681 | |
2024 | 21,188 | |
2025 | 17,425 | |
2026 and thereafter | 71,131 | |
Total future minimum lease payments | 196,976 | |
Less: Interest | 23,248 | |
Present value of lease liabilities | 173,728 | $ 122,836 |
Variable lease costs | 14,300 | |
Short-term lease costs | $ 2,200 | |
Weighted-average remaining lease term (in years) | 2 years 6 months | 2 years 7 months 6 days |
Weighted-average discount rate | 3.00% | 3.10% |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities - (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Rental expense | $ 20,707 | $ 20,706 |
Payments on lease liabilities | $ 9,906 | $ 17,426 |
Uncategorized Items - len-20210
Label | Element | Value |
Operating Segments [Member] | Lennar Homebuilding East, Central, West, Houston, and Other [Member] | ||
Cash and Cash Equivalents, at Carrying Value | us-gaap_CashAndCashEquivalentsAtCarryingValue | $ 784,950,000 |
Operating Segments [Member] | Lennar Financial Services [Member] | ||
Cash and Cash Equivalents, at Carrying Value | us-gaap_CashAndCashEquivalentsAtCarryingValue | 246,712,000 |
Operating Segments [Member] | Other Segments [Member] | ||
Cash and Cash Equivalents, at Carrying Value | us-gaap_CashAndCashEquivalentsAtCarryingValue | 5,030,000 |
Operating Segments [Member] | Lennar Multifamily [Member] | ||
Cash and Cash Equivalents, at Carrying Value | us-gaap_CashAndCashEquivalentsAtCarryingValue | $ 15,790,000 |