Cover
Cover - USD ($) | 12 Months Ended | ||
Nov. 30, 2022 | Dec. 31, 2022 | May 31, 2022 | |
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Nov. 30, 2022 | ||
Current Fiscal Year End Date | --11-30 | ||
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 | 5505 Blue Lagoon Drive | ||
Entity Address, City or Town | Miami | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33126 | ||
City Area Code | 305 | ||
Local Phone Number | 559-4000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 21,008,348,667 | ||
Documents Incorporated by Reference | Related Section Documents III Definitive Proxy Statement to be filed pursuant to Regulation 14A on or before March 30, 2023. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000920760 | ||
Class A Common Stock | |||
Title of 12(b) Security | Class A Common Stock, par value 10¢ | ||
Trading Symbol | LEN | ||
Security Exchange Name | NYSE | ||
Entity Common Stock, Shares Outstanding | 253,539,060 | ||
Class B Common Stock | |||
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 | 36,161,355 |
Audit Information
Audit Information | 12 Months Ended |
Nov. 30, 2022 | |
Audit Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Miami, Florida |
Auditor Firm ID | 34 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 | ||
Inventories: | ||||
Total assets | [1] | $ 37,984,295 | $ 33,207,778 | |
Stockholders’ equity: | ||||
Preferred stock | [2] | 0 | 0 | |
Additional paid-in capital | [2] | 5,417,796 | 8,807,891 | |
Retained earnings | [2] | 18,861,417 | 14,685,329 | |
Treasury stock, at cost; 2022 - 2,455,387 shares of Class A common stock and 419,860 shares of Class B common stock; 2021 - 38,586,961 shares of Class A common stock and 1,922,016 shares of Class B common stock | [2] | (210,389) | (2,709,448) | |
Accumulated other comprehensive income (loss) | [2] | 2,408 | (1,341) | |
Total stockholders’ equity | [2] | 24,100,500 | 20,816,425 | |
Noncontrolling interests | [2] | 139,867 | 179,857 | |
Total equity | [2] | 24,240,367 | 20,996,282 | |
Total liabilities | [2] | 13,743,928 | 12,211,496 | |
Total liabilities and equity | [2] | 37,984,295 | 33,207,778 | |
Class A Common Stock | ||||
Stockholders’ equity: | ||||
Common stock | [2] | 25,608 | 30,050 | |
Class B Common Stock | ||||
Stockholders’ equity: | ||||
Common stock | [2] | 3,660 | 3,944 | |
Homebuilding | ||||
ASSETS | ||||
Cash and cash equivalents | [1] | 4,616,124 | 2,735,213 | |
Restricted cash | [1] | 23,046 | 21,927 | |
Receivables, net | [1] | 673,980 | 490,278 | |
Inventories: | ||||
Finished homes and construction in progress | [1] | 11,718,507 | 10,446,139 | |
Land and land under development | [1] | 7,382,273 | 7,108,142 | |
Consolidated inventory not owned | [1] | 2,331,231 | 1,161,023 | |
Total inventories | [1] | 21,432,011 | 18,715,304 | |
Investments in unconsolidated entities | [1] | 1,173,164 | 972,084 | |
Goodwill | 3,442,359 | [1] | 3,442,359 | |
Other assets | [1] | 1,323,478 | 1,090,654 | |
Total assets | [1] | 32,684,162 | 27,467,819 | |
LIABILITIES AND EQUITY | ||||
Accounts payable | [2] | 1,616,128 | 1,321,247 | |
Liabilities related to consolidated inventory not owned | [2] | 1,967,551 | 976,602 | |
Senior notes and other debts payable, net | [2] | 4,047,294 | 4,652,338 | |
Other liabilities | [2] | 3,347,673 | 2,920,055 | |
Stockholders’ equity: | ||||
Total liabilities | [2] | 10,978,646 | 9,870,242 | |
Financial Services | ||||
Inventories: | ||||
Total assets | [1] | 3,254,257 | 2,964,367 | |
Stockholders’ equity: | ||||
Total liabilities | [2] | 2,353,904 | 1,906,343 | |
Multifamily | ||||
Inventories: | ||||
Total assets | [1] | 1,257,337 | 1,311,747 | |
Stockholders’ equity: | ||||
Total liabilities | [2] | 313,484 | 288,930 | |
Lennar Other | ||||
Inventories: | ||||
Total assets | [1] | 788,539 | 1,463,845 | |
Stockholders’ equity: | ||||
Total liabilities | [2] | $ 97,894 | $ 145,981 | |
[1] Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its consolidated balance sheets the assets of consolidated variable interest entities ("VIEs") that are owned by the consolidated VIEs and liabilities of consolidated VIEs as to which there is no recourse against the Company. As of November 30, 2022, total assets include $1.4 billion related to consolidated VIEs of which $56.9 million is included in Homebuilding cash and cash equivalents, $0.3 million in Homebuilding receivables, net, $29.4 million in Homebuilding finished homes and construction in progress, $736.5 million in Homebuilding land and land under development, $533.8 million in Homebuilding consolidated inventory not owned, $1.0 million in Homebuilding investments in unconsolidated entities, $23.0 million in Homebuilding other assets, $33.2 million in Multifamily assets and $9.0 million in Lennar Other assets . As of November 30, 2021, total assets include $1.1 billion related to consolidated VIEs of which $60.9 million is included in Homebuilding cash and cash equivalents, $4.4 million in Homebuilding receivables, net, $14.3 million in Homebuilding finished homes and construction in progress, $697.1 million in Homebuilding land and land under development, $239.2 million in Homebuilding consolidated inventory not owned, $1.1 million in Homebuilding investments in unconsolidated entities, $17.4 million in Homebuilding other assets and $80.6 million in Multifamily assets. As of November 30, 2022, total liabilities include $620.4 million related to consolidated VIEs as to which there was no recourse against the Company, of which $66.9 million is included in Homebuilding accounts payable, $510.9 million in Homebuilding liabilities related to consolidated inventory not owned, $29.4 million in Homebuilding senior notes and other debts payable, $7.2 million in Homebuilding other liabilities, $3.8 million in Multifamily liabilities and $2.2 million in Lennar Other liabilities. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 | |
Total assets | [1] | $ 37,984,295 | $ 33,207,778 |
Total liabilities | [2] | 13,743,928 | 12,211,496 |
Variable Interest Entity, Primary Beneficiary | |||
Total assets | 1,400,000 | 1,100,000 | |
Total liabilities | $ 620,400 | $ 258,500 | |
Class A Common Stock | |||
Common stock, par value (in USD per share) | $ 0.10 | $ 0.10 | |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 | |
Common stock, shares issued (in shares) | 256,084,147 | 300,500,075 | |
Treasury stock, shares (in shares) | 2,455,387 | 38,586,961 | |
Class B Common Stock | |||
Common stock, par value (in USD per share) | $ 0.10 | $ 0.10 | |
Common stock, shares authorized (in shares) | 90,000,000 | 90,000,000 | |
Common stock, shares issued (in shares) | 36,601,215 | 39,443,168 | |
Treasury stock, shares (in shares) | 419,860 | 1,922,016 | |
Homebuilding | |||
Total assets | [1] | $ 32,684,162 | $ 27,467,819 |
Cash and cash equivalents | [1] | 4,616,124 | 2,735,213 |
Receivables, net | [1] | 673,980 | 490,278 |
Finished homes and construction in progress | [1] | 11,718,507 | 10,446,139 |
Land and land under development | [1] | 7,382,273 | 7,108,142 |
Consolidated inventory not owned | [1] | 2,331,231 | 1,161,023 |
Investments in unconsolidated entities | [1] | 1,173,164 | 972,084 |
Other assets | [1] | 1,323,478 | 1,090,654 |
Total liabilities | [2] | 10,978,646 | 9,870,242 |
Accounts payable | [2] | 1,616,128 | 1,321,247 |
Senior notes and other debts payable, net | [2] | 4,047,294 | 4,652,338 |
Liabilities related to consolidated inventory not owned | [2] | 1,967,551 | 976,602 |
Other liabilities | [2] | 3,347,673 | 2,920,055 |
Homebuilding | Variable Interest Entity, Primary Beneficiary | |||
Cash and cash equivalents | 56,900 | 60,900 | |
Receivables, net | 300 | 4,400 | |
Finished homes and construction in progress | 29,400 | 14,300 | |
Land and land under development | 736,500 | 697,100 | |
Consolidated inventory not owned | 533,800 | 239,200 | |
Investments in unconsolidated entities | 1,000 | 1,100 | |
Other assets | 23,000 | 17,400 | |
Accounts payable | 66,900 | 26,600 | |
Senior notes and other debts payable, net | 29,400 | 20,100 | |
Liabilities related to consolidated inventory not owned | 510,900 | 196,600 | |
Other liabilities | 7,200 | 12,300 | |
Lennar Other | |||
Total assets | [1] | 788,539 | 1,463,845 |
Total liabilities | [2] | 97,894 | 145,981 |
Lennar Other | Variable Interest Entity, Primary Beneficiary | |||
Total assets | 9,000 | ||
Total liabilities | 2,200 | ||
Multifamily | |||
Total assets | [1] | 1,257,337 | 1,311,747 |
Total liabilities | [2] | 313,484 | 288,930 |
Multifamily | Variable Interest Entity, Primary Beneficiary | |||
Total assets | 33,200 | 80,600 | |
Total liabilities | $ 3,800 | $ 2,800 | |
[1] Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its consolidated balance sheets the assets of consolidated variable interest entities ("VIEs") that are owned by the consolidated VIEs and liabilities of consolidated VIEs as to which there is no recourse against the Company. As of November 30, 2022, total assets include $1.4 billion related to consolidated VIEs of which $56.9 million is included in Homebuilding cash and cash equivalents, $0.3 million in Homebuilding receivables, net, $29.4 million in Homebuilding finished homes and construction in progress, $736.5 million in Homebuilding land and land under development, $533.8 million in Homebuilding consolidated inventory not owned, $1.0 million in Homebuilding investments in unconsolidated entities, $23.0 million in Homebuilding other assets, $33.2 million in Multifamily assets and $9.0 million in Lennar Other assets . As of November 30, 2021, total assets include $1.1 billion related to consolidated VIEs of which $60.9 million is included in Homebuilding cash and cash equivalents, $4.4 million in Homebuilding receivables, net, $14.3 million in Homebuilding finished homes and construction in progress, $697.1 million in Homebuilding land and land under development, $239.2 million in Homebuilding consolidated inventory not owned, $1.1 million in Homebuilding investments in unconsolidated entities, $17.4 million in Homebuilding other assets and $80.6 million in Multifamily assets. As of November 30, 2022, total liabilities include $620.4 million related to consolidated VIEs as to which there was no recourse against the Company, of which $66.9 million is included in Homebuilding accounts payable, $510.9 million in Homebuilding liabilities related to consolidated inventory not owned, $29.4 million in Homebuilding senior notes and other debts payable, $7.2 million in Homebuilding other liabilities, $3.8 million in Multifamily liabilities and $2.2 million in Lennar Other liabilities. |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Costs and expenses: | |||
Equity in earnings (loss) from unconsolidated entities | $ (36,302) | $ 48,993 | $ (22,127) |
Earnings before income taxes | 6,014,566 | 5,819,058 | 3,123,788 |
Provision for income taxes | (1,366,065) | (1,362,509) | (656,235) |
Net earnings (including net earnings attributable to noncontrolling interests) | 4,648,501 | 4,456,549 | 2,467,553 |
Less: Net earnings attributable to noncontrolling interests | 34,376 | 26,438 | 2,517 |
Net earnings attributable to Lennar | 4,614,125 | 4,430,111 | 2,465,036 |
Other comprehensive income (loss), net of tax: | |||
Net unrealized gain (loss) on securities available-for-sale | 1,464 | (536) | (851) |
Reclassification adjustments for gains included in net earnings | 2,285 | 0 | (452) |
Total other comprehensive income (loss), net of tax | 3,749 | (536) | (1,303) |
Total comprehensive income attributable to Lennar | 4,617,874 | 4,429,575 | 2,463,733 |
Total comprehensive income attributable to noncontrolling interests | $ 34,376 | $ 26,438 | $ 2,517 |
Basic earnings per share (in USD per share) | $ 15.74 | $ 14.28 | $ 7.88 |
Diluted earnings per share (in USD per share) | $ 15.72 | $ 14.27 | $ 7.85 |
Operating Segments And Corporate Non Segment | |||
Costs and expenses: | |||
Total costs and expenses | $ 26,949,763 | $ 22,052,243 | $ 19,373,164 |
Earnings before income taxes | 6,014,566 | 5,819,058 | 3,123,788 |
Operating Segments | |||
Revenues: | |||
Total revenues | 33,671,010 | 27,130,676 | 22,488,854 |
Corporate and unallocated | |||
Costs and expenses: | |||
Corporate general and administrative | 414,498 | 398,381 | 333,446 |
Contribution Expense | 66,399 | 59,825 | 24,972 |
Earnings before income taxes | (480,897) | (458,206) | (358,418) |
Homebuilding | Operating Segments | |||
Revenues: | |||
Total revenues | 31,951,335 | 25,545,242 | 20,981,136 |
Costs and expenses: | |||
Costs and expenses | 25,161,299 | 20,502,541 | 17,961,644 |
Equity in earnings (loss) from unconsolidated entities | (17,235) | (14,205) | (836) |
Other income (expense), net | 4,516 | 3,266 | (29,749) |
Earnings before income taxes | 6,777,317 | 5,031,762 | 2,988,907 |
Financial Services | Operating Segments | |||
Revenues: | |||
Total revenues | 809,680 | 898,745 | 890,311 |
Costs and expenses: | |||
Costs and expenses | 426,378 | 407,731 | 470,777 |
Financial Services gain on deconsolidation | 0 | 0 | 61,418 |
Earnings before income taxes | 383,302 | 491,014 | 480,952 |
Multifamily | Operating Segments | |||
Revenues: | |||
Total revenues | 865,603 | 665,232 | 576,328 |
Costs and expenses: | |||
Costs and expenses | 848,931 | 652,810 | 575,581 |
Multifamily equity in earnings from unconsolidated entities and other gain | 52,821 | 9,031 | 21,934 |
Earnings before income taxes | 69,493 | 21,453 | 22,681 |
Lennar Other | |||
Costs and expenses: | |||
Lennar Other unrealized gain (loss) from technology investments | (655,094) | 510,802 | |
Lennar Other | Operating Segments | |||
Revenues: | |||
Total revenues | 44,392 | 21,457 | 41,079 |
Costs and expenses: | |||
Costs and expenses | 32,258 | 30,955 | 6,744 |
Lennar Other equity in earnings (loss) from unconsolidated entities, other income (expense), net, and other gain (loss) | (91,689) | 231,731 | (44,669) |
Lennar Other unrealized gain (loss) from technology investments | (655,094) | 510,802 | 0 |
Earnings before income taxes | $ (734,649) | $ 733,035 | $ (10,334) |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Class A Common Stock | Class B Common Stock | Common Stock Class A Common Stock | Common Stock Class B Common Stock | Additional Paid-In Capital | Retained Earnings | Retained Earnings Class A Common Stock | Retained Earnings Class B Common Stock | Treasury Stock | Accumulated Comprehensive Other Income (Loss) | Total Stockholders' Equity | Noncontrolling Interests | |
Beginning balance at Nov. 30, 2019 | $ 29,712 | $ 3,944 | $ 8,578,219 | $ 8,295,001 | $ (957,857) | $ 498 | $ 84,313 | |||||||
Statement of Equity [Roll Forward] | ||||||||||||||
Employee stock and director plans | 182 | 576 | (32,855) | |||||||||||
Retirement of treasury stock | 0 | 0 | 0 | 0 | ||||||||||
Amortization of restricted stock | 107,131 | |||||||||||||
Premium paid for purchase of noncontrolling interests | 0 | |||||||||||||
Net earnings (including net earnings attributable to noncontrolling interests) | $ 2,467,553 | 2,465,036 | 2,517 | |||||||||||
Cash dividends | $ (171,520) | $ (23,523) | ||||||||||||
Purchases of treasury stock | (288,515) | |||||||||||||
Total other comprehensive income (loss), net of tax | (1,303) | |||||||||||||
Receipts related to noncontrolling interests | 176,617 | |||||||||||||
Payments related to noncontrolling interests | (42,349) | |||||||||||||
Non-cash consolidations/deconsolidations, net | (114,712) | |||||||||||||
Non-cash purchase or activity of noncontrolling interests, net | (9,870) | (1,841) | ||||||||||||
Ending balance at Nov. 30, 2020 | 18,099,401 | 29,894 | 3,944 | 8,676,056 | 10,564,994 | (1,279,227) | (805) | $ 17,994,856 | 104,545 | |||||
Statement of Equity [Roll Forward] | ||||||||||||||
Employee stock and director plans | 156 | 1,207 | (64,662) | |||||||||||
Retirement of treasury stock | 0 | 0 | 0 | 0 | ||||||||||
Amortization of restricted stock | 135,090 | |||||||||||||
Premium paid for purchase of noncontrolling interests | 0 | |||||||||||||
Net earnings (including net earnings attributable to noncontrolling interests) | 4,456,549 | 4,430,111 | 26,438 | |||||||||||
Cash dividends | (272,162) | (37,614) | ||||||||||||
Purchases of treasury stock | $ (1,357,081) | $ (8,197) | (1,365,559) | |||||||||||
Total other comprehensive income (loss), net of tax | (536) | |||||||||||||
Receipts related to noncontrolling interests | 69,675 | |||||||||||||
Payments related to noncontrolling interests | (24,605) | |||||||||||||
Non-cash consolidations/deconsolidations, net | 0 | |||||||||||||
Non-cash purchase or activity of noncontrolling interests, net | (4,462) | 3,804 | ||||||||||||
Ending balance at Nov. 30, 2021 | 20,996,282 | [1] | 30,050 | 3,944 | 8,807,891 | 14,685,329 | (2,709,448) | (1,341) | 20,816,425 | 179,857 | ||||
Statement of Equity [Roll Forward] | ||||||||||||||
Employee stock and director plans | 225 | 904 | (71,695) | |||||||||||
Retirement of treasury stock | (4,667) | (284) | (3,533,425) | (3,538,376) | ||||||||||
Amortization of restricted stock | 184,086 | |||||||||||||
Premium paid for purchase of noncontrolling interests | (37,342) | |||||||||||||
Net earnings (including net earnings attributable to noncontrolling interests) | 4,648,501 | 4,614,125 | 34,376 | |||||||||||
Cash dividends | $ (383,047) | $ (54,990) | ||||||||||||
Purchases of treasury stock | $ (868,788) | $ (98,613) | (967,622) | |||||||||||
Total other comprehensive income (loss), net of tax | 3,749 | |||||||||||||
Receipts related to noncontrolling interests | 41,816 | |||||||||||||
Payments related to noncontrolling interests | (91,329) | |||||||||||||
Non-cash consolidations/deconsolidations, net | (55,240) | |||||||||||||
Non-cash purchase or activity of noncontrolling interests, net | (4,318) | 30,387 | ||||||||||||
Ending balance at Nov. 30, 2022 | $ 24,240,367 | [1] | $ 25,608 | $ 3,660 | $ 5,417,796 | $ 18,861,417 | $ (210,389) | $ 2,408 | $ 24,100,500 | $ 139,867 | ||||
[1] As of November 30, 2022, total liabilities include $620.4 million related to consolidated VIEs as to which there was no recourse against the Company, of which $66.9 million is included in Homebuilding accounts payable, $510.9 million in Homebuilding liabilities related to consolidated inventory not owned, $29.4 million in Homebuilding senior notes and other debts payable, $7.2 million in Homebuilding other liabilities, $3.8 million in Multifamily liabilities and $2.2 million in Lennar Other liabilities. |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Class A Common Stock | |||
Cash dividends (in USD per share) | $ 1.50 | $ 1 | $ 0.625 |
Class B Common Stock | |||
Cash dividends (in USD per share) | $ 1.50 | $ 1 | $ 0.625 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | ||
Cash flows from operating activities: | ||||
Net earnings (including net earnings attributable to noncontrolling interests) | $ 4,648,501 | $ 4,456,549 | $ 2,467,553 | |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||
Depreciation and amortization | 87,075 | 85,954 | 94,553 | |
Amortization of discount/premium on debt, net | (2,163) | (6,775) | (24,775) | |
Equity in (earnings) loss from unconsolidated entities | 36,302 | (48,993) | 22,127 | |
Distributions of earnings from unconsolidated entities | 71,301 | 45,984 | 62,073 | |
Share-based compensation expense | 184,086 | 134,621 | 107,131 | |
Deferred income tax (benefit) expense | (246,653) | 191,627 | 92,082 | |
Unrealized Gain (Loss) on Financing Receivables, Held-for-sale | 33,287 | 14,449 | (21,765) | |
Gain on sale of other assets, operating properties and equipment, CMBS bonds, other liabilities and real estate owned | (7,617) | (27,678) | (8,626) | |
Gain on deconsolidation of an entity | 0 | 0 | (56,594) | |
Loss on Extinguishment of Debt | 0 | (2,204) | 7,997 | |
Valuation adjustments and write-offs of option deposits and pre-acquisition costs, other receivables and other assets | 110,693 | 25,696 | 117,825 | |
Changes in assets and liabilities: | ||||
(Increase) decrease in receivables | (422,398) | (289,776) | 25,868 | |
(Increase) decrease in inventories, excluding valuation adjustments and write-offs of option deposits and pre-acquisition costs | (2,383,821) | (1,960,614) | 781,362 | |
(Increase) decrease in other assets | (13,330) | (121,036) | 90,534 | |
(Increase) decrease in loans held-for-sale | (202,920) | (160,785) | 176,617 | |
Increase in accounts payable and other liabilities | 701,113 | 881,309 | 266,488 | |
Net cash provided by operating activities | 3,265,668 | 2,532,774 | 4,190,819 | |
Cash flows from investing activities: | ||||
Net additions to operating properties and equipment | (57,214) | (65,172) | (72,752) | |
Proceeds from the sale of operating properties and equipment, other assets, CMBS bonds and real estate owned | 24,686 | 41,551 | 33,934 | |
Proceeds from Divestiture of Interest in Joint Venture | 0 | 32,340 | 0 | |
Investments in and contributions to unconsolidated entities | (447,401) | (408,183) | (486,217) | |
Distributions of capital from unconsolidated and consolidated entities | 398,423 | 362,181 | 220,713 | |
Proceeds from sale of commercial mortgage-backed securities bonds | 9,191 | 11,307 | 3,248 | |
Decrease (increase) in Financial Services loans held-for-investment, net | 19,491 | 29,397 | (3,122) | |
Purchases of investment securities | (93,769) | (128,162) | (45,548) | |
Proceeds from maturities/sales of investment securities | 16,892 | 16,312 | 52,918 | |
Other receipts, net | 1,399 | 16 | 1,643 | |
Net cash used in investing activities | (128,302) | (105,086) | (280,205) | |
Cash flows from financing activities: | ||||
Redemption of senior notes | (575,000) | (1,159,851) | (1,499,999) | |
Principal payments on notes payable and other borrowings | (48,079) | (195,212) | (604,995) | |
Proceeds from other borrowings | 0 | 13,973 | 92,688 | |
Proceeds from other liabilities | 1,167,227 | 694,185 | 346,406 | |
Payments for Turn of Inventory Not Owned, Financing Activities | (682,385) | (350,583) | 0 | |
(Payments) proceeds related to other liabilities, net | (21,249) | 25,564 | (116,541) | |
Receipts related to noncontrolling interests | 41,816 | 69,675 | 176,617 | |
Payments related to noncontrolling interests | (91,329) | (24,605) | (42,349) | |
Common stock: | ||||
Repurchases | (1,039,309) | (1,430,212) | (321,524) | |
Dividends | (438,038) | (309,776) | (195,043) | |
Net cash used in financing activities | (1,277,279) | (2,404,735) | (2,446,575) | |
Net increase (decrease) in cash and cash equivalents | 1,860,087 | 22,953 | 1,464,039 | |
Summary of cash and cash equivalents and restricted cash: | ||||
Cash and cash equivalents and restricted cash at beginning of year | 2,955,683 | 2,932,730 | 1,468,691 | |
Cash and cash equivalents and restricted cash at end of year | 4,815,770 | 2,955,683 | 2,932,730 | |
Supplemental disclosures of cash flow information: | ||||
Cash paid for interest, net of amounts capitalized | 67,842 | 47,720 | 97,336 | |
Cash paid for income taxes, net | 1,273,166 | 1,140,858 | 402,180 | |
Supplemental disclosures of non-cash investing and financing activities: | ||||
Purchases of inventories, land under development and other assets financed by sellers | 36,947 | 141,319 | 120,796 | |
Net non-cash contributions to unconsolidated entities | 232,616 | 27,880 | 97,281 | |
Non-cash right of use assets due to adoption of ASU 2016-02 | 0 | 0 | 150,702 | |
Non-cash lease liabilities due to adoption of ASU 2016-02 | 0 | 0 | 159,717 | |
Operating Segments | ||||
Summary of cash and cash equivalents and restricted cash: | ||||
Cash and cash equivalents and restricted cash at beginning of year | 2,955,683 | 2,932,730 | ||
Cash and cash equivalents and restricted cash at end of year | 4,815,770 | 2,955,683 | 2,932,730 | |
Cash and cash equivalents | 4,778,720 | 2,921,744 | ||
Restricted cash | 37,050 | 33,939 | ||
Homebuilding | ||||
Summary of cash and cash equivalents and restricted cash: | ||||
Cash and cash equivalents | [1] | 4,616,124 | 2,735,213 | |
Restricted cash | [1] | 23,046 | 21,927 | |
Homebuilding | Operating Segments | ||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||
Depreciation and amortization | 104,290 | 101,399 | 95,094 | |
Equity in (earnings) loss from unconsolidated entities | 17,235 | 14,205 | 836 | |
Summary of cash and cash equivalents and restricted cash: | ||||
Cash and cash equivalents | 4,616,124 | 2,735,213 | 2,703,986 | |
Restricted cash | 23,046 | 21,927 | 15,211 | |
Lennar Other | ||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||
Unrealized loss on investments | 672,212 | (680,576) | 0 | |
Lennar Other | Operating Segments | ||||
Summary of cash and cash equivalents and restricted cash: | ||||
Cash and cash equivalents | 5,391 | 2,660 | 3,918 | |
Restricted cash | 0 | 0 | ||
Financial Services | ||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||
Gain on sale of businesses | 0 | (3,811) | (5,014) | |
Cash flows from investing activities: | ||||
Proceeds from sale of business | 0 | 3,327 | 14,978 | |
Consolidation/deconsolidation of unconsolidated/consolidated entities, net: | ||||
Financial Services assets | 0 | 0 | (217,565) | |
Financial Services liabilities | 0 | 0 | 115,175 | |
Noncontrolling interests | 0 | 0 | 102,390 | |
Financial Services | Operating Segments | ||||
Summary of cash and cash equivalents and restricted cash: | ||||
Cash and cash equivalents | 139,378 | 167,021 | 116,171 | |
Restricted cash | 14,004 | 12,012 | 54,481 | |
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 | 0 | (1,167) | (4,617) | |
Multifamily | Operating Segments | ||||
Summary of cash and cash equivalents and restricted cash: | ||||
Cash and cash equivalents | 17,827 | 16,850 | 38,963 | |
Restricted cash | 0 | 0 | ||
Segments Other Than Financial Services | ||||
Consolidation/deconsolidation of unconsolidated/consolidated entities, net: | ||||
Noncontrolling interests | 55,240 | 0 | 12,323 | |
Inventories | (101,946) | 0 | 95,476 | |
Operating properties and equipment and other assets | 33,200 | 0 | 6,870 | |
Investments in unconsolidated entities | 7,303 | 0 | (68,290) | |
Notes payable | 0 | 0 | (44,924) | |
Other liabilities | 6,203 | 0 | (1,455) | |
Warehouse Repurchase Facility | ||||
Cash flows from financing activities: | ||||
Net (repayments) borrowings under lines of credit | $ 409,067 | $ 262,107 | $ (281,835) | |
[1] Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its consolidated balance sheets the assets of consolidated variable interest entities ("VIEs") that are owned by the consolidated VIEs and liabilities of consolidated VIEs as to which there is no recourse against the Company. As of November 30, 2022, total assets include $1.4 billion related to consolidated VIEs of which $56.9 million is included in Homebuilding cash and cash equivalents, $0.3 million in Homebuilding receivables, net, $29.4 million in Homebuilding finished homes and construction in progress, $736.5 million in Homebuilding land and land under development, $533.8 million in Homebuilding consolidated inventory not owned, $1.0 million in Homebuilding investments in unconsolidated entities, $23.0 million in Homebuilding other assets, $33.2 million in Multifamily assets and $9.0 million in Lennar Other assets . As of November 30, 2021, total assets include $1.1 billion related to consolidated VIEs of which $60.9 million is included in Homebuilding cash and cash equivalents, $4.4 million in Homebuilding receivables, net, $14.3 million in Homebuilding finished homes and construction in progress, $697.1 million in Homebuilding land and land under development, $239.2 million in Homebuilding consolidated inventory not owned, $1.1 million in Homebuilding investments in unconsolidated entities, $17.4 million in Homebuilding other assets and $80.6 million in Multifamily assets. |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Nov. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Consolidation The accompanying consolidated financial statements include the accounts of Lennar Corporation and all subsidiaries, partnerships and other entities in which Lennar Corporation has a controlling interest and VIEs (see Note 8) in which Lennar Corporation is deemed the primary beneficiary (the "Company"). The Company’s investments in both unconsolidated entities in which a significant, but less than controlling, interest is held and in VIEs in which the Company is not deemed to be the primary beneficiary are accounted for by the equity method. All intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Revenue Recognition Homebuilding revenues and related profits from sales of homes are recognized at the time of the closing of a sale, when title to and possession of the property are transferred to the homebuyer. In order to promote sales of the homes, the Company may offer sales incentives to homebuyers. The types of incentives vary on a community-by-community basis and home-by-home basis. They include primarily price discounts on individual homes and financing incentives, all of which are reflected as a reduction of home sales revenues. For the years ended November 30, 2022, 2021 and 2020, sales incentives offered to homebuyers averaged $17,300 per home, or 3.5% as a percentage of home sales revenues, $9,000 per home, or 2.1% as a percentage of home sales revenues and $19,800 per home, or 4.8% as a percentage of home sales revenues, respectively. The Company’s performance obligation, to deliver the agreed-upon home, is generally satisfied in less than one year from the original contract date. Cash proceeds from home closings are included in Homebuilding cash and cash equivalents in the Company's consolidated balance sheets. Contract liabilities include customer deposits liability related to sold but undelivered homes that are included in other liabilities in the Company's consolidated balance sheets. The Company periodically elects to sell parcels of land to third parties. Cash consideration from land sales is typically due on the closing date, which is generally when performance obligations are satisfied and revenue is recognized as title to and possession of the property are transferred to the buyer. Advertising Costs The Company expenses advertising costs as incurred. Advertising costs were $102.1 million, $74.2 million and $72.6 million for the years ended November 30, 2022, 2021 and 2020, respectively. Share-Based Payments The Company has share-based awards outstanding under the 2016 Equity Incentive Plan (the "Plan"), which provides for the granting of stock options, stock appreciation rights, restricted common stock ("nonvested shares") and other share based awards to officers, associates and directors. The exercise prices of stock options may not be less than the market value of the common stock on the date of the grant. Exercises are permitted in installments determined when options are granted. Each stock option will expire on a date determined at the time of the grant, but not more than 10 years after the date of the grant. The Company accounts for stock option awards and nonvested share awards granted under the Plan based on the estimated grant date fair value. Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Due to the short maturity period of cash equivalents, the carrying amounts of these instruments approximate their fair values. Homebuilding restricted cash consists of customer deposits on home sales held in restricted accounts until title transfers to the homebuyer, as required by the state and local governments in which the homes were sold, as well as funds on deposit to secure and support performance obligations. Financial Services restricted cash consists of upfront deposits and application fees LMF Commercial receives before originating loans and is recognized as income once the loan has been originated, as well as cash held in escrow by the Company’s loan service provider on behalf of customers and lenders and is disbursed in accordance with agreements between the transacting parties. Homebuilding cash and cash equivalents as of November 30, 2022 and 2021 included $1.0 billion and $940.4 million, respectively, of cash held in escrow for approximately two days. Receivables At November 30, 2022 and 2021, Homebuilding accounts receivable primarily related to receivables from land banks for land development, rebates and joint ventures. The Company performs ongoing credit evaluations of its customers and generally does not require collateral for accounts receivable. Mortgages and notes receivable arising from the sale of homes and land are generally collateralized by the property sold to the buyer. Allowances are maintained for potential credit losses based on historical experience, present economic conditions and other factors considered relevant by the Company. Balances for the years ended November 30, 2022 and 2021 are noted below: November 30, (In thousands) 2022 2021 Accounts receivable $ 490,420 245,004 Mortgages and notes receivable 185,739 247,805 676,159 492,809 Allowance for credit losses (2,179) (2,531) Receivables, net (1) $ 673,980 490,278 (1) At November 30, 2022 and 2021, receivables, net included $50 million and $85 million, respectively, related to a short-term loan due from Upward America that was repaid subsequent to each year end. Inventories 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. Inventory costs include land, land development and home construction costs, real estate taxes, deposits on land purchase contracts and interest related to development and construction. Construction overhead and selling expenses are expensed as incurred. Homes held-for-sale are classified as inventories until delivered. Land, land development, amenities and other costs are accumulated by specific area and allocated to homes within the respective areas. The Company reviews its inventory for indicators of impairment by evaluating each community during each reporting period. The inventory within each community is categorized as finished homes and construction in progress or land under development based on the development state of the community. There were 1,200 and 1,259 active communities, excluding unconsolidated entities, as of November 30, 2022 and 2021, respectively. If the undiscounted cash flows expected to be generated by a community are less than its carrying amount, an impairment charge is recorded to write down the carrying amount of such community to its estimated fair value. In conducting its review for indicators of impairment on a community level, the Company evaluates, among other things, the margins on homes that have been delivered, margins on homes under sales contracts in backlog, projected margins with regard to future home sales over the life of the community, projected margins with regard to future land sales and the estimated fair value of the land itself. The Company pays particular attention to communities in which inventory is moving at a slower than anticipated absorption pace and communities whose average sales price and/or margins are trending downward and are anticipated to continue to trend downward. From this review, the Company identifies communities in which to assess if the carrying values exceed their undiscounted projected cash flows. The Company estimates the fair value of its communities using a discounted cash flow model. The projected cash flows for each community are significantly impacted by estimates related to market supply and demand, product type by community, homesite sizes, sales pace, sales prices, sales incentives, construction costs, sales and marketing expenses, the local economy, competitive conditions, labor costs, costs of materials and other factors for that particular community. Every division evaluates the historical performance of each of its communities as well as current trends in the market and economy impacting the community and its surrounding areas. These trends are analyzed for each of the estimates listed above. Each of the homebuilding markets in which the Company operates is unique, as homebuilding has historically been a local business driven by local market conditions and demographics. Each of the Company’s homebuilding markets has specific supply and demand relationships reflective of local economic conditions. The Company’s projected cash flows are impacted by many assumptions. Some of the most critical assumptions in the Company’s cash flow model are projected absorption pace for home sales, sales prices and costs to build and deliver homes on a community by community basis. In order to arrive at the assumed absorption pace for home sales and the assumed sales prices included in the Company’s cash flow model, the Company analyzes its historical absorption pace and historical sales prices in the community and in other comparable communities in the geographical area. In addition, the Company considers internal and external market studies and places greater emphasis on more current metrics and trends, which generally include, but are not limited to, statistics and forecasts on population demographics and on sales prices in neighboring communities, unemployment rates and availability and sales prices of competing product in the geographical area where the community is located as well as the absorption pace realized in its most recent quarters and the sales prices included in the Company's current backlog for such communities. Generally, if the Company notices a variation from historical results over a span of two fiscal quarters, the Company considers such variation to be the establishment of a trend and adjusts its historical information accordingly in order to develop assumptions on the projected absorption pace and sales prices in the cash flow model for a community. In order to arrive at the Company’s assumed costs to build and deliver homes, the Company generally assumes a cost structure reflecting contracts currently in place with its vendors adjusted for any anticipated cost reduction initiatives or increases in cost structure. Those costs assumed are used in the cash flow model for the Company’s communities. Since the estimates and assumptions included in the Company’s cash flow models are based upon historical results and projected trends, they do not anticipate unexpected changes in market conditions or strategies that may lead the Company to incur additional impairment charges in the future. The determination of fair value requires discounting the estimated cash flows at a rate the Company believes a market participant would determine to be commensurate with the inherent risks associated with the assets and related estimated cash flow streams. The discount rate used in determining each asset’s fair value depends on the community’s projected life and development stage. 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's valuation adjustments for finished homes and construction in progress were included in Homebuilding costs and expenses in the Company's consolidated statements of operations and comprehensive income (loss) for the years ended November 30, 2022 and 2021. The table below summarizes communities reviewed for indicators of impairment and communities with valuation adjustments recorded: At November 30, Communities with valuation adjustments # of communities with potential indicators of impairment # of communities Fair Value Valuation Adjustments 2022 15 9 $ 105,042 $ 33,563 2021 4 1 5,267 11,849 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: Years Ended November 30, 2022 2021 Unobservable inputs Range Average selling price (1) $233,000 — $753,000 $635,000 Absorption rate per quarter (homes) 2 — 12 11 Discount rate 20% 20% (1) Represents the projected average selling price on future deliveries for communities in which the Company recorded impairments on during the years ended November 30, 2022 and 2021. The Company also has access to land inventory through option contracts, which generally enables the Company to defer acquiring portions of properties owned by third parties (including land funds) and unconsolidated entities until it has determined whether to exercise its option. The use of option contracts allows the Company to reduce the financial risks associated with long-term land holdings. A majority of the Company’s option contracts require a non-refundable cash deposit or irrevocable letter of credit based on a percentage of the purchase price of the land. As of November 30, 2022, the Company had $2.0 billion of nonrefundable option deposits and pre-acquisition costs related to certain of these homesites, which were included in inventories in the accompanying consolidated balance sheet. The Company’s option contracts sometimes include price adjustment provisions, which adjust the purchase price of the land to its approximate fair value at the time of acquisition or are based on the fair value at the time of takedown. Some option contracts contain a predetermined take-down schedule for the optioned land parcels. However, in substantially all instances, the Company is not required to purchase land in accordance with those take-down schedules. In substantially all instances, the Company has the right and ability to not exercise its option and forfeit its deposit without further penalty, other than termination of the option and loss of any unapplied portion of its deposit and pre-acquisition costs and the incurrence of any applicable termination fee associated with the option contract. Therefore, in substantially all instances, the Company does not consider the take-down price to be a firm contractual obligation. In determining whether to walk away from an option contract, the Company evaluates the option primarily based upon its expected cash flows from the property under option. If the Company intends to walk away from an option contract, it records a charge to earnings in the period such decision is made for the unapplied deposit amount and any related pre-acquisition costs and accrues any applicable termination fee associated with the option contract. During the year ended November 30, 2022, the Company wrote-off $47.9 million of deposit and pre-acquisition costs. To reflect the purchase price of homesite takedowns related to option contracts that the Company decided to exercise, the Company had a net reclass related to option deposits from consolidated inventory not owned to finished homes and construction in progress in the accompanying consolidated balance sheet as of November 30, 2022. In the course of executing on the Company’s land light strategy, the Company may sell land to third parties (including land funds) and unconsolidated entities while maintaining an option to repurchase the land in the future. Although, such transactions include cash consideration from the buyer and the transfer of title from the Company to the buyer, such transactions do not meet the criteria for revenue recognition under GAAP due to the Company’s option to repurchase the land from the buyer in the future. As such, land related to such transactions remains on the Company’s accompanying consolidated balance sheet and is reclassified from land and land under development to consolidated inventory not owned. 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. During the year ended November 30, 2022, consolidated inventory not owned increased by $1.2 billion with a corresponding increase to liabilities related to consolidated inventory not owned in the accompanying consolidated balance sheet as of November 30, 2022. The increase was primarily due to reclassifications from land and land under development to consolidated inventory not owned during the year ended November 30, 2022 as the Company continued to focus on increasing its controlled homesites as compared to owned homesites. The increase was partially offset by takedowns during the year ended November 30, 2022. Investments in Unconsolidated Entities The Company evaluates the long-lived assets in unconsolidated entities for indicators of impairment during each reporting period. If a valuation adjustment is recorded by an unconsolidated entity related to its assets, the Company generally uses a discount rate between 10% and 20%, subject to the perceived risks associated with the community’s cash flow streams relative to its inventory or operating assets. The Company’s proportionate share of a valuation adjustment is reflected in the Company's Homebuilding, Multifamily or Lennar Other equity in earnings (loss) from unconsolidated entities with a corresponding decrease to its Homebuilding, Multifamily or Lennar Other investment in unconsolidated entities. Additionally, the Company evaluates if a decrease in the fair value of an investment below its carrying value is other-than-temporary. This evaluation includes certain critical assumptions made by management: (1) projected future distributions from the unconsolidated entities, (2) discount rates applied to the future distributions and (3) various other factors, which include age of the venture, relationships with the other partners and banks, general economic market conditions, land status and liquidity needs of the unconsolidated entity. If the decline in the fair value of the investment is other-than-temporary, then these losses are included in Homebuilding other income, net, Multifamily other gain (loss) or Lennar Other other gain (loss). The Company tracks its share of cumulative earnings and distributions of its joint ventures ("JVs"). For purposes of classifying distributions received from JVs in the Company’s consolidated statements of cash flows, cumulative distributions are treated as returns on capital to the extent of cumulative earnings and included in the Company’s consolidated statements of cash flows as operating activities. Cumulative distributions in excess of the Company’s share of cumulative earnings are treated as returns of capital and included in the Company’s consolidated statements of cash flows as cash from investing activities. Variable Interest Entities GAAP requires the assessment of whether an entity is a VIE and, if so, if the Company is the primary beneficiary at the inception of the entity or at a reconsideration event. Additionally, GAAP requires the consolidation of VIEs in which an enterprise has a controlling financial interest. A controlling financial interest will have both of the following characteristics: (a) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company’s variable interest in VIEs may be in the form of (1) equity ownership, (2) contracts to purchase assets, (3) management and development agreements between the Company and a VIE, (4) loans provided by the Company to a VIE or other partner and/or (5) guarantees provided by members to banks and other third parties. The Company examines specific criteria and uses its judgment when determining if it is the primary beneficiary of a VIE. Factors considered in determining whether the Company is the primary beneficiary include risk and reward sharing, experience and financial condition of other partner(s), voting rights, involvement in day-to-day capital and operating decisions, representation on a VIE’s executive committee, existence of unilateral kick-out rights or voting rights, level of economic disproportionality, if any, between the Company and the other partner(s) and contracts to purchase assets from VIEs. The determination whether an entity is a VIE and, if so, whether the Company is the primary beneficiary may require it to exercise significant judgment. Generally, all major decision making in the Company’s joint ventures is shared among all partners. In particular, business plans and budgets are generally required to be unanimously approved by all partners. Usually, management and other fees earned by the Company are nominal and believed to be at market and there is no significant economic disproportionality between the Company and other partners. Generally, the Company purchases less than a majority of the JV’s assets and the purchase prices under its option contracts are believed to be at market. Generally, Homebuilding and Multifamily unconsolidated entities become VIEs due to insufficient equity at risk for the JV entity as the partner(s) continue to provide subordinated financial support in the form of capital contributions. Homebuilding and Multifamily unconsolidated entities become VIEs and consolidate if the other partner(s) lack the intent and financial wherewithal to remain in the entity. As a result, the Company continues to fund operations and debt paydowns through partner loans or substituted capital contributions. Goodwill Goodwill is recorded with acquisitions of businesses when the purchase price of the business exceeds the fair value of the net tangible and identifiable assets acquired. In accordance with ASC Topic 350, Intangibles-Goodwill and Other ("ASC 350"), the Company evaluates goodwill for potential impairment on at least an annual basis. The Company has the option to perform a qualitative or quantitative assessment to determine whether the fair value of a reporting unit exceeds its carrying value. Qualitative factors may include, but are not limited to economic conditions, industry and market considerations, cost factors, overall financial performance of the reporting units and other entity and reporting unit specific events. The fair value estimate is derived through various valuation methods, including the use of discounted expected future cash flows of each reporting unit. The expected future cash flows for each segment are significantly impacted by current market conditions. If these market conditions and resulting expected future cash flows for each reporting unit decline significantly, the actual results for each segment could differ from the Company's estimate, which would cause goodwill to be impaired. The annual goodwill impairment analysis was performed as of September 30, 2022, and no impairment was recorded. Operating Properties and Equipment Operating properties and equipment are recorded at cost and are included in other assets in the consolidated balance sheets. The assets are depreciated over their estimated useful lives using the straight-line method. At the time operating properties and equipment are disposed of, the asset and related accumulated depreciation are removed from the accounts and any resulting gain or loss is credited or charged to earnings. The estimated useful life for operating properties is 30 years, for furniture, fixtures and equipment is two Operating properties and equipment are included in Homebuilding other assets in the consolidated balance sheets and were as follows: November 30, (In thousands) 2022 2021 Operating properties (1) $ 305,743 309,367 Leasehold improvements 68,951 56,620 Furniture, fixtures and equipment 207,223 172,774 581,917 538,761 Accumulated depreciation and amortization (226,822) (198,855) $ 355,095 339,906 (1) Operating properties primarily include solar systems, rental operations and commercial properties. Investment Securities The Company holds investment securities classified as available-for-sale or held-to-maturity. Available-for-sale securities are recorded at fair value. Any unrealized holding gains or losses on available-for-sale securities are reported as accumulated other comprehensive gain or loss, which is a separate component of stockholders’ equity, net of tax, until realized. Securities classified as held-to-maturity are carried at amortized cost because they are purchased with the intent and ability to hold to maturity. At November 30, 2022 and 2021, the Financial Services segment had investment securities classified as held-to-maturity totaling $143.3 million and $157.8 million, respectively, which consist mainly of commercial mortgage-backed securities ("CMBS"), corporate debt obligations, U.S. government agency obligations, certificates of deposit and U.S. treasury securities that mature at various dates, mainly within three years. At November 30, 2022 and 2021, the Lennar Other segment had investment securities classified as held-for-sale totaling $35.5 million and $41.7 million, respectively. Additionally, the Lennar Other segment had investments in equity securities with a readily determinable fair value (publicly traded common stock), not accounted for under the equity method, that are recorded at fair value with unrealized gains and losses included in earnings. For equity securities without a readily determinable fair value, the investment is recorded at cost, less any impairment, plus or minus adjustments related to observable transactions for the same or similar securities, with unrealized gains and losses included in earnings. The Lennar Other segment had investments in equity securities of $391.0 million and $1.0 billion that are recorded at fair value with unrealized gains and losses included in earnings, as of November 30, 2022 and 2021, respectively. For equity method investments in the Lennar Other segment, the Company records the investment as Lennar Other investments in unconsolidated entities. The Company regularly reviews its investments in unconsolidated entities to determine whether there is a decline in fair value below book value. If there is a decline that is other-than-temporary, the investment is written down to fair value. There was no impairment recorded during the years ended November 30, 2022 and 2021. Interest and Real Estate Taxes Interest and real estate taxes attributable to land and homes are capitalized as inventory costs while they are being actively developed. Interest related to homebuilding and land, including interest costs relieved from inventories, is included in costs of homes sold and costs of land sold. Interest expense related to the Financial Services and Multifamily operations is included in its costs and expenses. During the years ended November 30, 2022, 2021 and 2020, interest incurred by the Company’s homebuilding operations related to homebuilding debt was $230.8 million, $275.1 million and $353.4 million, respectively; interest capitalized into inventories was $211.7 million, $254.9 million and $331.0 million, respectively. Interest expense was included in costs of homes sold, costs of land sold and other interest expense as follows: Years Ended November 30, (In thousands) 2022 2021 2020 Interest expense in costs of homes sold $ 293,105 342,756 349,109 Interest expense in costs of land sold 498 2,475 2,594 Other interest expense (1) 19,128 20,142 22,401 Total interest expense $ 312,731 365,373 374,104 (1) Included in Homebuilding other income (expense), net. Income Taxes The Company records income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and attributable to operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which the temporary differences are expected to be recovered or paid. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period when the changes are enacted. Interest related to unrecognized tax benefits is recognized in the financial statements as a component of income tax expense. A reduction of the carrying amounts of deferred tax assets by a valuation allowance is required if, based on the available evidence, it is more likely than not that such assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed each reporting period by the Company based on the consideration of all available positive and negative evidence using a "more-likely-than-not" standard with respect to whether deferred tax assets will be realized. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, actual earnings, forecasts of future profitability, the duration of statutory carryforward periods, the Company’s experience with loss carryforwards not expiring unused and tax planning alternatives. Based on the analysis of positive and negative evidence, the Company believed that there was enough positive evidence for the Company to conclude that it was more likely than not that the Company would realize the majority of its deferred tax assets. As of November 30, 2022 and 2021, the Company's net deferred tax assets of $242.4 million and liabilities of $4.2 million included a valuation allowance of $2.9 million and $2.7 million, respectively. See Note 5 for additional information. Other Liabilities Reflected within the consolidated balance sheets, the other liabilities balance as of November 30, 2022 and 2021, included accrued interest payable, product warranty (as noted below), accrued bonuses, accrued wages and benefits, lease liabilities, deferred income, customer deposits, income taxes payable, and other accrued liabilities. 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 Company regularly monitors the warranty reserve and makes adjustments to its pre-existing warranties in order to reflect changes in trends and historical data as information becomes available. Warranty reserves are included in Homebuilding other liabilities in the consolidated balance sheets. The activity in the Company’s warranty reserve was as follows: Years Ended November 30, (In thousands) 2022 2021 Warranty reserve, beginning of year $ 377,021 341,765 Warranties issued 274,766 217,641 Adjustments to pre-existing warranties from changes in estimates (1) 26,222 29,436 Payments (259,992) (211,821) Warranty reserve, end of year $ 418,017 377,021 (1) The adjustments to pre-existing warranties from changes in estimates during the years ended November 30, 2022 and 2021 primarily related to specific claims in certain of the Company's homebuilding communities and other adjustments. Self-Insurance Reserves for estimated losses for construction defects, general liability and workers’ compensation have been established using the assistance of a |
Operating And Reporting Segment
Operating And Reporting Segments | 12 Months Ended |
Nov. 30, 2022 | |
Segment Reporting [Abstract] | |
Operating And Reporting Segments | Operating and Reporting Segments Each reportable segment follows the same accounting policies described in Note 1—"Summary of Significant Accounting Policies" to the consolidated financial statements. Operational results of each segment are not necessarily indicative of the results that would have occurred had the segment been an independent, stand-alone entity during the periods presented. 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) November 30, 2022 Assets: Homebuilding Financial Multifamily Lennar Total Cash and cash equivalents $ 4,616,124 139,378 17,827 5,391 4,778,720 Restricted cash 23,046 14,004 — — 37,050 Receivables, net (1) 673,980 826,163 114,134 — 1,614,277 Inventories 21,432,011 — 430,442 — 21,862,453 Loans held-for-sale (2) — 1,776,311 — — 1,776,311 Investments in equity securities (3) 391,026 391,026 Investments available-for-sale (4) — — — 35,482 35,482 Loans held-for-investments, net — 45,636 — — 45,636 Investments held-to-maturity — 143,251 — — 143,251 Investments in unconsolidated entities 1,173,164 — 648,126 316,523 2,137,813 Goodwill 3,442,359 189,699 — — 3,632,058 Other assets 1,323,478 119,815 46,808 40,117 1,530,218 $ 32,684,162 3,254,257 1,257,337 788,539 37,984,295 Liabilities: Notes and other debts payable, net $ 4,047,294 2,135,093 16,749 — 6,199,136 Accounts payable and other liabilities 6,931,352 218,811 296,735 97,894 7,544,792 $ 10,978,646 2,353,904 313,484 97,894 13,743,928 (In thousands) November 30, 2021 Assets: Homebuilding Financial Multifamily Lennar Total Cash and cash equivalents $ 2,735,213 167,021 16,850 2,660 2,921,744 Restricted cash 21,927 12,012 — — 33,939 Receivables, net (1) 490,278 708,165 98,405 — 1,296,848 Inventories 18,715,304 — 454,093 — 19,169,397 Loans held-for-sale (2) — 1,636,351 — — 1,636,351 Investments in equity securities (3) — — — 1,006,599 1,006,599 Investments available-for-sale (4) — — — 41,654 41,654 Loans held-for-investments, net — 44,582 — — 44,582 Investments held-to-maturity — 157,808 — — 157,808 Investments in unconsolidated entities 972,084 — 654,029 346,270 1,972,383 Goodwill 3,442,359 189,699 — — 3,632,058 Other assets 1,090,654 48,729 88,370 66,662 1,294,415 $ 27,467,819 2,964,367 1,311,747 1,463,845 33,207,778 Liabilities: Notes and other debts payable, net $ 4,652,338 1,726,026 — — 6,378,364 Accounts payable and other liabilities 5,217,904 180,317 288,930 145,981 5,833,132 $ 9,870,242 1,906,343 288,930 145,981 12,211,496 (1) Receivables, net for Financial Services primarily related to loans sold to investors for which the Company had not yet been paid as of November 30, 2022 and November 30, 2021, respectively. (2) Loans held-for-sale related to unsold residential and commercial loans carried at fair value. (3) Investments in equity securities include investments of $178.0 million and $100.1 million without readily available fair values as of November 30, 2022 and November 30, 2021, respectively. (4) Investments available-for-sale are carried at fair value with changes in fair value recorded as a component of accumulated other comprehensive income (loss) on the consolidated balance sheets. Financial information relating to the Company’s segments was as follows: Year ended November 30, 2022 (In thousands) Homebuilding Financial Multifamily Lennar Corporate and Total Revenues $ 31,951,335 809,680 865,603 44,392 — 33,671,010 Operating earnings (loss) 6,777,317 383,302 69,493 (734,649) — 6,495,463 Corporate general and administrative expenses — — — — (414,498) (414,498) Charitable foundation contribution — — — — (66,399) (66,399) Earnings (loss) before income taxes 6,777,317 383,302 69,493 (734,649) (480,897) 6,014,566 Year ended November 30, 2021 (In thousands) Homebuilding Financial Multifamily Lennar Corporate and Total Revenues $ 25,545,242 898,745 665,232 21,457 — 27,130,676 Operating earnings 5,031,762 491,014 21,453 733,035 — 6,277,264 Corporate general and administrative expenses — — — — (398,381) (398,381) Charitable foundation contribution — — — — (59,825) (59,825) Earnings before income taxes 5,031,762 491,014 21,453 733,035 (458,206) 5,819,058 Year ended November 30, 2020 (In thousands) Homebuilding Financial Multifamily Lennar Corporate and Total Revenues $ 20,981,136 890,311 576,328 41,079 — 22,488,854 Operating earnings (loss) 2,988,907 480,952 22,681 (10,334) — 3,482,206 Corporate general and administrative expenses — — — — (333,446) (333,446) Charitable foundation contribution — — — — (24,972) (24,972) Earnings (loss) before income taxes 2,988,907 480,952 22,681 (10,334) (358,418) 3,123,788 (1) Financial Services operating earnings for the year ended November 30, 2022 included a $35.5 million one-time charge due to an increase in a litigation accrual related to a court judgment. (2) Operating loss for Lennar Other for the year ended November 30, 2022 included a $655.1 million mark-to-market unrealized loss on the Company's publicly traded technology investments. Operating earnings for Lennar Other for the year ended November 30, 2021 included a $510.8 million mark-to-market unrealized gain on the Company's publicly traded technology investments. Operating loss for Lennar Other for the year ended November 30, 2020 included a $25.0 million write-down of assets held by Rialto legacy funds because of the disruption in the capital markets as a result of COVID-19 and the economic shutdown. (3) Corporate and unallocated expenses primarily represent costs of operations at the Company's corporate headquarters in Miami. These operations include the Company's executive offices, information technology, treasury, corporate accounting and tax, legal, internal audit and human resources. Also included are property expenses related to the leases of corporate offices, data processing, general corporate expenses and charitable foundation contribution to the Lennar Foundation. 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. Homebuilding Other also includes management of a fund that acquires single-family homes and holds them as rental properties. The Company’s reportable Homebuilding segments and all other homebuilding operations not required to be reported separately, have homebuilding divisions located in: East: Alabama, Florida, New Jersey , Pennsylvania and South Carolina Central: Georgia, Illinois, Indiana, Maryland, Minnesota, North Carolina, Tennessee 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 Five Point Holdings, LLC ("FivePoint") The assets related to the Company's Homebuilding segments were as follows: (In thousands) East Central Texas West Other Corporate and Total Balance at November 30, 2022 $ 6,877,581 4,010,610 3,742,663 12,182,709 1,382,864 4,487,735 32,684,162 Balance at November 30, 2021 5,854,057 3,782,847 2,801,192 11,171,741 1,443,163 2,414,819 27,467,819 Financial information relating to the Company’s Homebuilding segments was as follows: Year ended November 30, 2022 (In thousands) East Central Texas West Other Total Revenues $ 9,266,013 5,846,023 4,227,771 12,571,386 40,142 31,951,335 Operating earnings (loss) 2,240,256 889,231 929,237 2,773,597 (55,004) 6,777,317 Interest expense 78,345 54,547 29,442 140,017 10,380 312,731 Depreciation and amortization 24,888 15,219 9,354 54,055 774 104,290 Net additions to operating properties and equipment 2,651 363 136 1,414 6,537 11,101 Year ended November 30, 2021 (In thousands) East Central Texas West Other Total Revenues $ 6,870,944 4,826,535 3,241,321 10,563,756 42,686 25,545,242 Operating earnings (loss) 1,455,432 720,419 730,465 2,192,446 (67,000) 5,031,762 Interest expense 90,314 58,899 28,764 176,633 10,763 365,373 Depreciation and amortization 24,531 16,118 9,821 49,691 1,238 101,399 Net additions to (disposals of) operating properties 219 239 (9) 26,375 14,950 41,774 Year ended November 30, 2020 (In thousands) East Central Texas West Other Total Homebuilding Revenues $ 5,715,028 4,093,693 2,709,681 8,437,167 25,567 20,981,136 Operating earnings (loss) 933,297 482,929 421,594 1,241,494 (90,407) 2,988,907 Interest expense 93,245 58,777 29,901 178,498 13,683 374,104 Depreciation and amortization 21,504 13,659 9,366 50,316 249 95,094 Net additions to (disposals of) operating properties and equipment 955 (11,370) 712 165,869 (32) 156,134 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. The Financial Services segment sells substantially all of the loans it originates within a short period of time in the secondary mortgage market, the majority of which are sold 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. 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 November 30, 2022, the Financial Services warehouse facilities were 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: December 2022 (1) $ 800,000 May 2023 500,000 August 2023 1,000,000 Total - Residential facilities $ 2,300,000 LMF Commercial facilities maturing: December 2022 (1) $ 400,000 July 2023 50,000 November 2023 100,000 Total - LMF Commercial facilities $ 550,000 Total $ 2,850,000 (1) Subsequent to November 30, 2022, the maturity date was extended to December 2023. 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: November 30, (In thousands) 2022 2021 Borrowings under the residential facilities $ 1,877,411 1,482,258 Collateral under the residential facilities 1,950,155 1,539,641 Borrowings under the LMF Commercial facilities 124,399 96,294 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. The provision for loan losses was immaterial for both the years ended November 30, 2022 and 2021. As of November 30, 2022 and 2021, loan origination liabilities were $11.8 million and $11.7 million, respectively, and included in Financial Services’ liabilities in the Company's consolidated balance sheets. LMF Commercial - loans held-for-sale LMF Commercial originated commercial loans as follows: November 30, (Dollars in thousands) 2022 2021 Originations (1) $ 740,345 770,107 Sold $ 715,933 931,023 Securitizations 6 6 (1) During both years ended November 30, 2022 and 2021 all the commercial loans originated were recorded as loans held-for-sale, which are held at fair value. Investments held-to-maturity At November 30, 2022 and 2021, the Financial Services segment held commercial mortgage-backed securities ("CMBS"). These securities are classified as held-to-maturity based on the segment's 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 the years ended November 30, 2022 and 2021. 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) November 30, 2022 November 30, 2021 Carrying value $ 143,251 157,808 Outstanding debt, net of debt issuance costs $ 133,283 147,474 Incurred interest rate 3.4 % 3.4 % November 30, 2022 Discount rates at purchase 6% — 84% Coupon rates 2.0% — 5.3% Distribution dates October 2027 — December 2028 Stated maturity dates October 2050 — December 2051 Multifamily The Company is actively involved, primarily through unconsolidated funds and joint ventures, 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. The Multifamily Segment (i) manages, and owns interests in, funds that are engaged in the development of multifamily residential communities with the intention of holding the newly constructed and occupied properties as income and fee generating assets, and (ii) manages, and owns interests in, joint ventures that are engaged in the development of multifamily residential communities, in most instances with the intention of selling them when they are built and substantially occupied. Our multifamily business is a vertically integrated platform with capabilities spanning development, construction, property management, asset management, and capital markets. Revenues are generated from the sales of land, from construction activities, and management and promote fees generated from joint ventures and other gains (which includes sales of investments and buildings), less the cost of sales of land sold, expenses related to construction activities and general and administrative expenses. Operations of the Multifamily Segment also include equity in earnings (loss) from unconsolidated entities. 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 Capital Management ( "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, along with equity in earnings (loss) from the Rialto fund investments and technology investments, realized and unrealized gains (losses) from investments in equity securities and other income (expense), net from the remaining assets related to the Company's former Rialto segment. The Company has investments in Blend Labs, Inc. ("Blend Labs"), Hippo Holdings, Inc. ("Hippo"), Opendoor, Inc. ("Opendoor"), SmartRent, Inc. ("SmartRent"), Sonder Holdings, Inc. ("Sonder") and Sunnova Energy International, Inc. ("Sunnova"), which are held at market and will therefore change depending on the value of the Company's share holdings in those entities on the last day of each quarter. All the investments are accounted for as investments in equity securities which are held at fair value and the changes in fair values are recognized through earnings. The following is a detail of Lennar Other unrealized gains (losses) from the Company's technology investments: Years Ended November 30, (In thousands) 2022 2021 Blend Labs (BLND) mark-to-market $ (25,630) (6,744) Hippo (HIPO) mark-to-market (222,447) 207,634 Opendoor (OPEN) mark-to-market (265,276) 239,312 SmartRent (SMRT) mark-to-market (78,177) 79,483 Sonder (SOND) mark-to-market (2,339) — Sunnova (NOVA) mark-to-market (61,225) (8,883) Lennar Other unrealized gains (losses) from technology investments $ (655,094) 510,802 Doma Holdings, Inc. ("Doma"), which went public during the year ended November 30, 2021, is an investment that continues to be accounted for under the equity method due to the Company's significant ownership interest which allows the Company to exercise significant influence. As of November 30, 2022, the Company owned approximately 25% of Doma. |
Investments In Unconsolidated E
Investments In Unconsolidated Entities | 12 Months Ended |
Nov. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments In Unconsolidated Entities | Investments in Unconsolidated Entities Homebuilding Unconsolidated Entities The investments in the Company's Homebuilding unconsolidated entities were as follows: November 30, (In thousands) 2022 2021 Investments in unconsolidated entities (1) (2) $ 1,173,164 972,084 Underlying equity in unconsolidated entities' net assets (1) 1,504,315 1,301,719 (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. (2) Included in the Company's recorded investments in Homebuilding unconsolidated entities is the Company's 40% ownership of FivePoint. As of November 30, 2022 and 2021, the carrying amount of the Company's investment was $382.9 million and $381.6 million, respectively. The Company’s partners generally are unrelated homebuilders, land owners/developers and financial or other strategic partners. The unconsolidated entities follow accounting principles that are in all material respects the same as those used by the Company. The Company shares in the profits and losses of these unconsolidated entities generally in accordance with its ownership interests. In many instances, the Company is appointed as the day-to-day manager under the direction of a management committee that has shared powers among the partners of the unconsolidated entities and the Company receives management fees and/or reimbursement of expenses for performing this function. The Company and/or its partners sometimes obtain options or enter into other arrangements under which the Company can purchase portions of the land held by the unconsolidated entities. Option prices are generally negotiated prices that approximate fair value when the Company receives the options. The details of the activity was as follows: Years Ended November 30, (In thousands) 2022 2021 2020 Land sales revenues (1) $ 94,513 57,944 99,935 Management fees and reimbursement of expenses, net of deferrals 20,792 16,464 2,363 (1) The Company does not include in its Homebuilding equity in loss from unconsolidated entities its pro-rata share of unconsolidated entities’ earnings resulting from land sales to its homebuilding divisions. Instead, the Company accounts for those earnings as a reduction of the cost of purchasing the land from the unconsolidated entities. This in effect defers recognition of the Company’s share of the unconsolidated entities’ earnings related to these sales until the Company delivers a home and title passes to a third-party homebuyer. The total debt of the Homebuilding unconsolidated entities in which the Company has investments was $1.4 billion and $1.2 billion as of November 30, 2022 and 2021, respectively, of which the Company's maximum recourse exposure was $9.1 million and $5.3 million as of November 30, 2022 and 2021, respectively. In most instances in which the Company has guaranteed debt of an unconsolidated entity, the Company’s partners have also guaranteed that debt and are required to contribute their share of the guarantee payments. In a repayment guarantee, the Company and its venture partners guarantee repayment of a portion or all of the debt in the event of default before the lender would have to exercise its rights against the collateral. The maintenance guarantees only apply if the value of the collateral (generally land and improvements) is less than a specified percentage of the loan balance. The Company would be required to make a payment under a maintenance guarantee to bring the value of the collateral above the specified percentage of the loan balance. In a completion guarantee, the Company and its venture partners have been required to give guarantees of completion to the lenders. Those completion guarantees may require that the guarantors complete the construction of the improvements for which the financing was obtained. As of November 30, 2022 and 2021, the Homebuilding segment's unconsolidated entities had non-recourse debt with completion guarantees of $333.6 million and $241.0 million, respectively. If the Company is required to make a payment under any guarantee, the payment would generally constitute a capital contribution or loan to the Homebuilding unconsolidated entity and increase the Company's investment in the unconsolidated entity and its share of any funds the entity distributes. As of both November 30, 2022 and 2021, the fair values of the repayment guarantees, maintenance guarantees and completion guarantees were not material. The Company believes that as of November 30, 2022, in the event it becomes legally obligated to perform under a guarantee of the obligation of a Homebuilding unconsolidated entity due to a triggering event under a guarantee, the collateral would be sufficient to repay at least a significant portion of the obligation or the Company and its partners would contribute additional capital into the venture. In certain instances, the Company has placed performance letters of credit and surety bonds with municipalities with regard to obligations of its joint ventures (see Note 4 of the Notes to Consolidated Financial Statements). In 2021, the Company formed the Upward America Venture (“Upward America”), and is managing and participating in Upward America. Upward America is an investment fund that acquires new single-family homes in high growth markets across the United States and rents them to the people who will live in them. Upward America has raised equity commitments totaling $1.6 billion, including $350 million of equity commitments raised during the first quarter of 2022. The commitments are primarily from institutional investors, including $125 million committed by Lennar. During the year ended November 30, 2022, Lennar delivered 2,418 homes to Upward America. As of November 30, 2022 and November 30, 2021, the carrying amount of the Company's investment in Upward America was $37.7 million and $13.3 million, respectively. Multifamily Unconsolidated Entities The unconsolidated joint ventures 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 joint ventures, 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 November 30, 2022 and 2021, the fair value of the completion guarantees was immaterial. As of November 30, 2022 and 2021, Multifamily segment's unconsolidated entities had non-recourse debt with completion guarantees of $1.0 billion and $855.2 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. In some situations, the Multifamily segment sells land to various joint ventures and funds. The details of the activity were as follows: Years Ended November 30, (In thousands) 2022 2021 2020 General contractor services, net of deferrals $ 498,142 549,400 400,808 General contractor costs 478,620 533,398 383,649 Land sales to joint ventures 237,477 15,105 83,944 Management fee income 63,823 56,573 56,253 The Multifamily segment includes Multifamily Venture Fund I ("LMV I"), Multifamily Venture Fund II LP ("LMV II") and Canada Pension Plan Investments Fund (the "Fund"), which are long-term multifamily development investment vehicles involved in the development, construction and property management of class-A multifamily assets. During the first quarter of 2022, the Multifamily segment completed the initial closing of the Fund. The Multifamily segment expects the Fund to have almost $1.0 billion in equity and Lennar's stated ownership percentage in the Fund is 4%. The Company has a $26.0 million investment in the Fund as of November 30, 2022 . Additional dollars will be committed as opportunities are identified by the Fund. Details of LMV I and LMV II as of and during the year ended November 30, 2022 are included below: (In thousands) LMV I LMV II Lennar's carrying value of investment $ 217,099 293,831 Equity commitments 2,204,016 1,257,700 Equity commitments called 2,152,324 1,206,664 Lennar's equity commitments 504,016 381,000 Lennar's equity commitments called 499,919 365,807 Lennar's remaining commitments 4,097 15,193 Distributions to Lennar 25,576 12,555 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 in 2018, as well as strategic investments in technology companies and investment funds. The Company's investment in the Rialto funds and investment vehicles totaled $185.1 million and $200.6 million as of November 30, 2022 and November 30, 2021, respectively. The Company also had strategic technology investments in unconsolidated entities and investment funds of $131.5 million and $145.6 million, as of November 30, 2022 and November 30, 2021, respectively. Condensed Financial Information of Unconsolidated Entities Summarized condensed financial information on a combined 100% basis related to the Company's unconsolidated entities that are accounted for under the equity method was as follows: (In thousands) November 30, 2022 Assets: Homebuilding Multifamily Lennar Total Cash and cash equivalents $ 366,276 53,121 413,698 833,095 Loans receivable — — 25,045 25,045 Real estate owned — — 213,103 213,103 Investment securities — — 2,543,715 2,543,715 Investments in partnerships — — 165,599 165,599 Inventories 5,391,285 1,000 — 5,392,285 Operating properties and equipment 56,687 7,090,294 — 7,146,981 Other assets 1,378,156 523,152 223,821 2,125,129 $ 7,192,404 7,667,567 3,584,981 18,444,952 Liabilities and equity: Accounts payable and other liabilities $ 994,603 245,266 170,649 1,410,518 Debt (1) 1,383,302 4,318,774 333,317 6,035,393 Equity 4,814,499 3,103,527 3,081,015 10,999,041 $ 7,192,404 7,667,567 3,584,981 18,444,952 Investments in unconsolidated entities $ 1,173,164 648,126 316,523 2,137,813 (In thousands) November 30, 2021 Assets: Homebuilding Multifamily Lennar Total Cash and cash equivalents $ 460,901 25,972 430,807 917,680 Loans receivable — — 65,971 65,971 Real estate owned — — 279,200 279,200 Investment securities — — 2,461,788 2,461,788 Investments in partnerships — — 346,042 346,042 Inventories 4,666,454 — — 4,666,454 Operating properties and equipment 44,802 6,406,500 — 6,451,302 Other assets 1,044,771 111,750 219,680 1,376,201 $ 6,216,928 6,544,222 3,803,488 16,564,638 Liabilities and equity: Accounts payable and other liabilities $ 904,078 240,928 179,879 1,324,885 Debt (1) 1,216,721 3,407,362 399,632 5,023,715 Equity 4,096,129 2,895,932 3,223,977 10,216,038 $ 6,216,928 6,544,222 3,803,488 16,564,638 Investments in unconsolidated entities $ 972,084 654,029 346,270 1,972,383 (1) Debt noted above is net of debt issuance costs. As of November 30, 2022 and 2021, this includes $18.4 million and $11.9 million, respectively, for Homebuilding, $26.4 million and $23.4 million, respectively, for Multifamily and an immaterial amount of debt issuance costs for Lennar Other. (In thousands) Statement of Operations Years Ended: Revenues Cost and expenses Other income (expense), net (1) Net earnings (loss) of unconsolidated entities Equity in earnings (loss) from unconsolidated entities November 30, 2022 $ 1,747,336 1,695,272 197,056 249,120 (36,302) November 30, 2021 1,383,266 1,448,775 187,625 122,116 48,993 November 30, 2020 1,362,686 1,221,873 (244,680) (103,867) (13,939) (1) Other income (expense), net included realized and unrealized gains (losses) on investments. |
Homebuilding Senior Notes And O
Homebuilding Senior Notes And Other Debts Payable | 12 Months Ended |
Nov. 30, 2022 | |
Debt Disclosure [Abstract] | |
Homebuilding Senior Notes And Other Debts Payable | Homebuilding Senior Notes and Other Debts Payable November 30, (Dollars in thousands) 2022 2021 4.875% senior notes due December 2023 $ 399,169 398,345 4.500% senior notes due 2024 648,975 648,253 5.875% senior notes due 2024 434,128 438,810 4.750% senior notes due 2025 498,892 498,446 5.25% senior notes due 2026 404,257 405,497 5.00% senior notes due 2027 351,741 352,124 4.75% senior notes due 2027 896,259 895,510 4.750% senior notes due 2022 — 573,840 Mortgage notes on land and other debt 413,873 441,513 $ 4,047,294 4,652,338 The carrying amounts of the senior notes in the table above are net of debt issuance costs of $7.6 million and $11.0 million, as of November 30, 2022 and 2021, respectively. In August 2022, the Company redeemed early $575 million aggregate principal amount of its 4.750% senior notes due November 2022. The redemption price, which was paid in cash, was 100% of the principal amount plus accrued but unpaid interest. In May 2022, the Company amended the credit agreement governing its unsecured revolving credit facility (the “Credit Facility") which increased the commitment from $2.5 billion to $2.6 billion and extended the maturity to May 2027, except for $350 million which matures in April 2024.The Credit Facility has a $425 million accordion feature, subject to additional commitments, thus the maximum borrowings are $3.0 billion. The proceeds available under the Credit Facility, which are subject to specified conditions for borrowing, may be used for working capital and general corporate purposes. The credit agreement also provides that up to $500 million in commitments may be used for letters of credit. As of both November 30, 2022 and 2021, the Company had no outstanding borrowings under the Credit Facility. Under the Credit Facility agreement, the Company is required to maintain a minimum consolidated tangible net worth, a maximum leverage ratio and either a liquidity or an interest coverage ratio. These ratios are calculated per the Credit Facility agreement, which involves adjustments to GAAP financial measures. The Company believes it was in compliance with its debt covenants at November 30, 2022. In addition to the Credit Facility, the Company has other letter of credit facilities with different financial institutions. Performance letters of credit are generally posted with regulatory bodies to guarantee the Company’s performance of certain development and construction activities. Financial letters of credit are generally posted in lieu of cash deposits on option contracts, for insurance risks, credit enhancements and as other collateral. Additionally, at November 30, 2022, the Company had outstanding surety bonds including performance surety bonds related to site improvements at various projects (including certain projects of the Company’s joint ventures) and financial surety bonds. Although significant development and construction activities have been completed related to these site improvements, these bonds are generally not released until all development and construction activities are completed. The Company does not presently anticipate any draws upon these bonds or letters of credit, but if any such draws occur, the Company does not believe they would have a material effect on its financial position, results of operations or cash flows. The Company's outstanding letters of credit and surety bonds are below: November 30, (In thousands) 2022 2021 Performance letters of credit $ 1,259,033 924,584 Financial letters of credit 503,659 425,843 Surety bonds 4,136,715 3,553,047 Anticipated future costs primarily for site improvements related to performance surety bonds 2,273,694 1,690,861 The terms of each of the Company's senior notes outstanding at November 30, 2022 were as follows: Senior Notes Outstanding (1) Principal Amount Net Proceeds (2) Price Date Issued (Dollars in thousands) 4.875% senior notes due December 2023 $ 400,000 393,622 99.169 % November 2015 4.500% senior notes due 2024 650,000 644,838 100 % April 2017 5.875% senior notes due 2024 425,000 (3) (3) (3) 4.750% senior notes due 2025 500,000 495,528 100 % April 2015 5.25% senior notes due 2026 400,000 (3) (3) (3) 5.00% senior notes due 2027 350,000 (3) (3) (3) 4.75% senior notes due 2027 900,000 894,650 100 % November 2017 (1) Interest is payable semi-annually for each of the series of senior notes. The senior notes are unsecured and unsubordinated, but are guaranteed by substantially all of the Company's 100% owned homebuilding subsidiaries. (2) The Company generally has historically used the net proceeds for working capital and general corporate purposes, which can include the repayment or repurchase of other outstanding senior notes. (3) These notes were obligations of CalAtlantic when it was acquired, and were subsequently exchanged in part for notes of the Company. As part of purchase accounting, the senior notes have been recorded at their fair value as of the date of acquisition (February 12, 2018). All of the senior notes are guaranteed by certain of the Company's 100% owned subsidiaries, which are primarily the Company's homebuilding subsidiaries. Although the guarantees are full, unconditional and joint and several while they are in effect, (i) a subsidiary will have its guarantee suspended at any time when it is not directly or indirectly guaranteeing at least $75 million of debt of Lennar Corporation (the parent company) other than senior notes, and (ii) a subsidiary will be released from its guarantee and any other obligations it may have regarding the senior notes if all or substantially all its assets, or all of its capital stock, are sold or otherwise disposed of. At November 30, 2022, the Company had mortgage notes on land and other debt due at various dates through 2036 bearing interest at rates up to 8.0% with an average interest rate of 4.3%. At November 30, 2022 and 2021, the carrying amount of the mortgage notes on land and other debt was $413.9 million and $441.5 million, respectively. During the years ended November 30, 2022 and 2021, the Company retired $48.1 million and $195.2 million, respectively, of mortgage notes on land and other debt. The minimum aggregate principal maturities of Homebuilding senior notes and other debts payable during the five years subsequent to November 30, 2022 and thereafter are as follows: (In thousands) Debt Maturities 2023 $ 223,130 2024 1,537,367 2025 566,124 2026 404,486 2027 1,265,349 Thereafter 42,415 The Company expects to pay its near-term maturities as they come due through cash generated from operations, the issuance of additional debt or equity offerings as well as borrowings under the Company's Credit Facility. |
Income Taxes
Income Taxes | 12 Months Ended |
Nov. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes consisted of the following: Years Ended November 30, (In thousands) 2022 2021 2020 Current: Federal $ 1,282,037 924,474 428,907 State 330,681 245,941 135,246 $ 1,612,718 1,170,415 564,153 Deferred: Federal $ (193,667) 149,349 59,065 State (52,986) 42,745 33,017 (246,653) 192,094 92,082 $ 1,366,065 1,362,509 656,235 A reconciliation of the statutory rate and the effective tax rate was as follows: Percentage of Pretax Income 2022 2021 2020 Statutory rate 21.00 % 21.00 % 21.00 % State income taxes, net of federal income tax benefit 4.52 4.03 4.00 Tax credits (1) (2) (2.16) (1.73) (4.46) Nondeductible compensation — 0.49 0.57 Tax reserves and interest expense, net (3) (0.83) 0.03 — Deferred tax asset valuation allowance, net — (0.01) — Other 0.31 (0.29) (0.09) Effective rate 22.84 % 23.52 % 21.02 % (1) During fiscal year 2022, Congress enacted the Inflation Reduction Act which included a retroactive extension of the new energy efficient home tax credit through 2032. (2) During fiscal year 2020, Congress extended the new energy efficient home tax credit for homes delivered from 2018 to 2021, with retroactive effect for 2018 and 2019. (3) Includes a $50.2 million benefit related to the resolution of an uncertain tax position during fiscal year 2022. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of significant temporary differences that give rise to the net deferred tax assets were as follows: November 30, (In thousands) 2022 2021 Deferred tax assets: Inventory valuation adjustments $ 83,330 94,624 Reserves and accruals 199,451 187,466 Net operating loss carryforwards 61,741 74,902 Capitalized expenses 241,887 174,405 Investments in unconsolidated entities 16,311 48,913 Employee stock incentive plan 37,573 37,813 Other assets 82,673 49,828 Total deferred tax assets 722,966 667,951 Valuation allowance (2,903) (2,693) Total deferred tax assets after valuation allowance 720,063 665,258 Deferred tax liabilities: Capitalized expenses 177,726 187,332 Deferred income 253,659 272,827 Unrealized gains on investments in equity securities — 164,534 Other liabilities 46,270 44,810 Total deferred tax liabilities 477,655 669,503 Net deferred tax assets (liabilities) $ 242,408 (4,245) The detail of the Company's net deferred tax assets (liabilities) was as follows: November 30, (In thousands) 2022 2021 Net deferred tax assets (liabilities): (1) Homebuilding $ 154,143 84,198 Financial Services 15,376 (1,431) Multifamily 26,675 64,247 Lennar Other 46,214 (151,259) Net deferred tax assets (liabilities) $ 242,408 (4,245) (1) Net deferred tax assets and net deferred tax liabilities detailed above are included within other assets and other liabilities in the respective segments. A reduction of the carrying amounts of deferred tax assets by a valuation allowance is required if, based on the available evidence, it is more likely than not that such assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed each reporting period by the Company based on the consideration of all available positive and negative evidence using a "more-likely-than-not" standard with respect to whether deferred tax assets will be realized. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, actual earnings, forecasts of future profitability, the duration of statutory carryforward periods, the Company’s experience with loss carryforwards not expiring unused and tax planning alternatives. November 30, (In thousands) 2022 2021 Valuation allowance (1) $ (2,903) (2,693) Federal tax effected NOL carryforwards (2) 29,672 32,968 State tax effected NOL carryforwards (3) 32,069 41,935 (1) As of November 30, 2022 and 2021, the deferred tax assets included valuation allowances primarily related to state net operating loss ("NOL") carryforwards that are not more likely than not to be utilized due to an inability to carry back these losses in most states and short carryforward periods that exist in certain states. (2) At November 30, 2022 and 2021, the Company had federal tax effected NOL carryforwards that may be carried forward to offset future taxable income and begin to expire in 2029. (3) At November 30, 2022 and 2021, the Company had state tax effected NOL carryforwards that may be carried forward from 10 to 20 years or indefinitely, depending on the tax jurisdiction, with certain losses expiring between 2022 and 2039. The following table summarizes the changes in gross unrecognized tax benefits: Years Ended November 30, (In thousands) 2022 2021 2020 Gross unrecognized tax benefits, beginning of year $ 12,285 12,285 12,856 Lapse of statute of limitations — — (349) Decreases due to settlements with tax authorities (12,285) — (222) Gross unrecognized tax benefits, end of year $ — 12,285 12,285 The following summarizes the changes in interest and penalties accrued with respect to gross unrecognized tax benefits: November 30, (In thousands) 2022 2021 Accrued interest and penalties, beginning of the year $ 59,937 57,764 Accrual of interest and penalties (primarily related to state audits) — 2,173 Reduction of interest and penalties (59,937) — Accrued interest and penalties, end of the year $ — 59,937 The IRS is currently examining the Company's federal income tax returns for fiscal year 2021, and certain state taxing authorities are examining various fiscal years. The final outcome of these examinations is not yet determinable. The statute of limitations for the Company's major tax jurisdictions remains open for examination for fiscal year 2015 and subsequent years. The Company participates in an IRS examination program, Compliance Assurance Process, "CAP". This program operates as a contemporaneous exam throughout the year in order to keep exam cycles current and achieve a higher level of compliance. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Nov. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic and diluted earnings per share were calculated as follows: Years Ended November 30, (In thousands, except per share amounts) 2022 2021 2020 Numerator: Net earnings attributable to Lennar $ 4,614,125 4,430,111 2,465,036 Less: distributed earnings allocated to nonvested shares 4,471 2,690 1,658 Less: undistributed earnings allocated to nonvested shares 47,509 50,229 26,731 Numerator for basic earnings per share 4,562,145 4,377,192 2,436,647 Less: net amount attributable to noncontrolling interests in Rialto's Carried Interest Incentive Plan (1) 4,919 2,907 8,971 Numerator for diluted earnings per share $ 4,557,226 4,374,285 2,427,676 Denominator: Denominator for basic earnings per share - weighted average common shares outstanding 289,824 306,612 309,406 Effect of dilutive securities: Share-based payments — — 1 Denominator for diluted earnings per share - weighted average common shares outstanding 289,824 306,612 309,407 Basic earnings per share $ 15.74 14.28 7.88 Diluted earnings per share $ 15.72 14.27 7.85 (1) The amounts above relate to Rialto's Carried Interest Incentive Plan and represent the difference between the advanced tax distributions received by the Lennar Other segment and the amount Lennar, as the parent company, is assumed to own. For the years ended November 30, 2022, 2021 and 2020, there were no options to purchase shares of common stock that were outstanding and anti-dilutive. |
Financial Instruments and Fair
Financial Instruments and Fair Value Disclosure | 12 Months Ended |
Nov. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Disclosure | Financial Instruments and Fair Value Disclosures The following table presents the carrying amounts and estimated fair values of financial instruments held or issued by the Company at November 30, 2022 and 2021, 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. November 30, 2022 2021 Fair Value Carrying Fair Carrying Fair (In thousands) Hierarchy Amount Value Amount Value ASSETS Financial Services: Loans held-for-investment, net Level 3 $ 45,636 45,647 44,582 44,594 Investments held-to-maturity Level 3 143,251 143,208 157,808 184,495 LIABILITIES Homebuilding senior notes and other debts payable, net Level 2 $ 4,047,294 3,993,242 4,652,338 5,046,721 Financial Services notes and other debts payable, net Level 2 2,135,093 2,135,797 1,726,026 1,726,860 Multifamily notes payable, net Level 2 16,749 16,749 — — 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. Multifamily —For notes payable, the fair values 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 at November 30, (In thousands) Fair 2022 2021 Financial Services Assets: Residential loans held-for-sale Level 2 $ 1,750,712 1,636,283 LMF Commercial loans held-for-sale Level 3 25,599 68 Mortgage servicing rights Level 3 3,463 2,492 Forward options Level 1 9,473 — Lennar Other: Investments in equity securities Level 1 212,981 906,539 Investments available-for-sale Level 3 35,482 41,654 Residential and LMF Commercial loans held-for-sale in the table above include: November 30, 2022 2021 (In thousands) Aggregate Principal Balance Change in Fair Value Aggregate Principal Balance Change in Fair Value Residential loans held-for-sale $ 1,734,480 16,233 1,586,764 49,519 LMF Commercial loans held-for-sale 24,000 1,599 — 68 The estimated fair values of the Company’s financial instruments have been determined by 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 following methods and assumptions are used by the Company in estimating fair values: 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 November 30, 2022 and 2021. 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. 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 Company estimates CMBS spreads by observing the pricing of recent CMBS offerings, secondary CMBS markets, changes in the CMBX index, and general capital and commercial real estate market conditions. Considerations in estimating CMBS spreads include comparing the Company’s current loan portfolio with comparable CMBS offerings containing loans with similar duration, credit quality and collateral composition. 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: November 30, 2022 Unobservable inputs Mortgage prepayment rate 8% Discount rate 13% Delinquency rate 7% Forward options - Fair value of forward options is based on independent quoted market prices for similar financial instruments. The fair value of these are included in Financial Services' other assets and the Company recognizes the changes in the fair value of the premium paid as Financial Services' Revenue. Lennar Other investments in equity securities - The fair value of investments in equity securities was calculated based on independent quoted market prices. The Company’s investments in equity securities were recorded at fair value with all changes in fair value recorded to Lennar Other unrealized gain (loss) from technology investments on the Company’s consolidated statements of operations and comprehensive income (loss). 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: Years Ended November 30, (In thousands) 2022 2021 2020 Changes in fair value included in Financial Services revenues: Loans held-for-sale $ (33,287) (14,449) 21,765 Mortgage loan commitments 43,695 (8,302) 12,774 Forward contracts (48,790) 11,513 (9,805) Forward options (142) — — Changes in fair value included in Lennar Other unrealized gain (loss) from technology investments: Investments in equity securities $ (655,094) 510,802 — Changes in fair value included in other comprehensive income (loss), net of tax: Lennar Other investments available-for-sale $ 1,464 (536) (805) 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: Years Ended November 30, 2022 2021 (In thousands) Mortgage servicing rights LMF Commercial loans held-for-sale Mortgage servicing rights LMF Commercial loans held-for-sale Beginning of year $ 2,492 68 2,113 193,588 Purchases/loan originations 353 740,345 584 774,905 Sales/loan originations sold, including those not settled — (715,933) — (931,023) Disposals/settlements (1) (404) — (1,365) (35,837) Changes in fair value (2) 1,022 1,599 1,160 (388) Interest and principal paydowns — (480) — (1,177) End of year $ 3,463 25,599 2,492 68 (1) The year ended November 30, 2021 includes $28.5 million of loans sold/paid outside of LMF Commercial ’s six securitizations and $7.3 million of loans converted to loans held-for-investment. (2) 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 tables 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: Years Ended November 30, 2022 2021 2020 (In thousands) Fair Carrying Value Fair Value Total Carrying Value Fair Value Total Losses, Net (1) Carrying Value Fair Value Total Losses, Net (1) Non-financial assets Homebuilding: Finished homes and construction in progress (2) Level 3 $ 347,300 295,663 (51,637) 32,364 16,342 (16,022) 176,637 148,684 (27,953) Land and land under development (2) Level 3 183,737 126,135 (57,602) 35,775 26,841 (8,934) 182,137 92,355 (89,782) Other assets (2) Level 3 — — — 12,764 12,024 (740) — — — Investments in unconsolidated entities (2) Level 3 1,454 — (1,454) — — — — — — (1) Represents losses due to valuation adjustments and deposit and acore write-offs recorded during the year. (2) Valuation adjustments for finished homes and construction in progress, and land and land under development were included in Homebuilding costs and expenses. During the year ended November 30, 2022, total losses, net, for land and land underdevelopment included $47.9 million of deposit and pre-acquisition cost write-offs. Valuation adjustments related to investments in unconsolidated entities were included in equity in earnings (loss) from unconsolidated entities and/or Homebuilding other income (expense), net in the Company's consolidated statements of operations and comprehensive income for the years ended November 30, 2022, 2021 and 2020. See Note 1 for a detailed description of the Company’s process for identifying and recording valuation adjustments related to Homebuilding inventory. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Nov. 30, 2022 | |
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 year ended November 30, 2022 and based on the Company's evaluation, there were six entities that were consolidated and had a total combined assets of $134.8 million and an immaterial amount of liabilities. During the year ended November 30, 2022, there were four VIEs that deconsolidated that had total assets of $244.3 million and liabilities of $74.2 million. The carrying amount of the Company's consolidated VIE's assets and non-recourse liabilities are disclosed in the footnote to the 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 the VIE’s lenders. Other than debt guarantee agreements with the 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: November 30, 2022 2021 (In thousands) Investments in Unconsolidated VIEs Lennar’s Maximum Exposure to Loss Investments in Lennar’s Maximum Exposure to Loss Homebuilding (1) $ 586,935 718,719 107,323 301,619 Multifamily (2) 607,484 633,934 579,388 611,937 Financial Services (3) 143,251 143,251 157,808 157,808 Lennar Other (4) 55,952 55,952 12,680 12,680 $ 1,393,622 1,551,856 857,199 1,084,044 (1) As of November 30, 2022 and 2021, the maximum exposure to loss of Homebuilding's investments in unconsolidated VIEs was limited to its investments in unconsolidated VIEs, except with regard to the Company's remaining $77.3 million and $106.1 million, respectively, commitment to fund capital in Upward America, and $52.7 million and $87.9 million, respectively, of receivables relating to a short-term loan and management fee owed to the Company by Upward America. (2) As of November 30, 2022 and 2021, the maximum exposure to loss of Multifamily's investments in unconsolidated VIEs was primarily limited to its investments in the unconsolidated VIEs. The maximum exposure for LMV I and LMV II in addition to the investment also included to the remaining combined equity commitment of $19.3 million and $23.1 million as of November 30, 2022 and 2021, respectively, for future expenditures related to the construction and development of its projects. (3) As of both November 30, 2022 and 2021, the maximum exposure to loss of the Financial Services segment was limited to its investment in the unconsolidated VIEs and related to the Financial Services' CMBS investments held-to-maturity. (4) At November 30, 2022, the maximum recourse exposure to loss of the Lennar Other segment was limited to its investments in the unconsolidated VIEs. The Company and its JV partners generally fund JVs as needed and in accordance with business plans to allow the entities to finance their activities. Because such JVs are expected to make future capital calls in order to continue to finance their activities, the entities are determined to be VIEs as of November 30, 2022 in accordance with ASC 810 due to insufficient equity at risk. 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. The Company’s exposure to losses on its option contracts with third parties and unconsolidated entities were as follows: November 30, (In thousands) 2022 2021 Non-refundable option deposits and pre-acquisition costs $ 1,990,946 1,228,057 Letters of credit in lieu of cash deposits under certain land and option contracts 163,942 175,937 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Nov. 30, 2022 | |
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 often 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. The Company is subject to the usual obligations associated with entering into contracts (including option contracts) for the purchase, development and sale of real estate, which it does in the routine conduct of its business. Option contracts generally enable the Company to control portions of properties owned by third parties (including land funds) and unconsolidated entities until the Company determines whether to exercise the option. The use of option contracts allows the Company to reduce the financial risks associated with long-term land holdings. At November 30, 2022, the Company had $2.0 billion of non-refundable option deposits and pre-acquisition costs related to certain of these homesites, which were included in inventories in the consolidated balance sheet. 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. Right-of-use ("ROU") assets and 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) November 30, 2022 Right-of-use assets $ 149,966 Lease liabilities $ 158,832 Weighted-average remaining lease term (in years) 7.9 Weighted-average discount rate 3.0% The Company has entered into agreements to lease certain office facilities and equipment under operating leases. Future minimum payments under the noncancellable leases in effect at November 30, 2022 were as follows: (In thousands) Lease Payments 2023 $ 34,167 2024 28,672 2025 24,049 2026 18,753 2027 and thereafter 73,036 Total future minimum lease payments (1) $ 178,677 Less: Interest (2) 19,845 Present value of lease liabilities (2) $ 158,832 (1) Future minimum lease payments exclude variable lease costs and short-term lease costs, which were $23.0 million and $2.7 million, respectively. (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 November 30, 2022, the Company recognized the lease liabilities on its consolidated balance sheets within accounts payable and other liabilities of the respective segments. The Company's rental expense was as follows: Years Ended November 30, (In thousands) 2022 2021 2020 Rental expense $ 105,414 84,991 82,090 On occasion, the Company may sublease rented space which is no longer used for the Company's operations. For the years ended November 30, 2022 and 2021, the Company had an immaterial amount of sublease income. The Company is committed, under various letters of credit, to perform certain development and construction activities and provide certain guarantees in the normal course of business. Outstanding letters of credit under these arrangements totaled $1.8 billion at November 30, 2022. Additionally, at November 30, 2022, the Company had outstanding surety bonds of $4.1 billion including performance surety bonds related to site improvements at various projects (including certain projects in the Company’s joint ventures) and financial surety bonds. Although significant development and construction activities have been completed related to these site improvements, these bonds are generally not released until all development and construction activities are completed. As of November 30, 2022, there were approximately $2.3 billion, or 55%, of anticipated future costs to complete related to these site improvements. The Company does not presently anticipate any draws upon these bonds that would have a material effect on its consolidated financial statements. Substantially all of the 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. Since the 2008 housing downturn, there has been an industry-wide effort by purchasers to defray their losses by purporting to have found inaccuracies related to sellers’ representations and warranties in particular loan sale agreements. Mortgage investors or others 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 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 consolidated balance sheets. |
Schedule II-Valuation And Quali
Schedule II-Valuation And Qualifying Accounts | 12 Months Ended |
Nov. 30, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II-Valuation And Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts Years Ended November 30, 2022, 2021 and 2020 Additions (In thousands) Beginning Charged to costs and expenses Charged (credited) to other accounts Deductions Ending Year ended November 30, 2022 Allowances deducted from assets to which they apply: Allowance for credit losses against notes and other receivables $ 2,531 145 (497) — 2,179 Allowance for loan losses against loans receivable $ 2,091 9,127 — (88) 11,130 Allowance against net deferred tax assets $ 2,693 784 — (574) 2,903 Year ended November 30, 2021 Allowances deducted from assets to which they apply: Allowance for credit losses against notes and other receivables $ 2,394 79 59 (1) 2,531 Allowance for loan losses against loans receivable $ 4,012 — (31) (1,890) 2,091 Allowance against net deferred tax assets $ 4,411 — (1,556) (162) 2,693 Year ended November 30, 2020 Allowances deducted from assets to which they apply: Allowance for credit losses against notes and other receivables $ 3,379 661 (568) (1,078) 2,394 Allowance for loan losses against loans receivable $ 4,122 795 17 (922) 4,012 Allowance against net deferred tax assets $ 4,341 70 — — 4,411 |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Nov. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis Of Consolidation | The accompanying consolidated financial statements include the accounts of Lennar Corporation and all subsidiaries, partnerships and other entities in which Lennar Corporation has a controlling interest and VIEs (see Note 8) in which Lennar Corporation is deemed the primary beneficiary (the "Company"). The Company’s investments in both unconsolidated entities in which a significant, but less than controlling, interest is held and in VIEs in which the Company is not deemed to be the primary beneficiary are accounted for by the equity method. All intercompany transactions and balances have been eliminated in consolidation. |
Use Of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Revenue Recognition | Homebuilding revenues and related profits from sales of homes are recognized at the time of the closing of a sale, when title to and possession of the property are transferred to the homebuyer. In order to promote sales of the homes, the Company may offer sales incentives to homebuyers. The types of incentives vary on a community-by-community basis and home-by-home basis. They include primarily price discounts on individual homes and financing incentives, all of which are reflected as a reduction of home sales revenues. For the years ended November 30, 2022, 2021 and 2020, sales incentives offered to homebuyers averaged $17,300 per home, or 3.5% as a percentage of home sales revenues, $9,000 per home, or 2.1% as a percentage of home sales revenues and $19,800 per home, or 4.8% as a percentage of home sales revenues, respectively. The Company’s performance obligation, to deliver the agreed-upon home, is generally satisfied in less than one year from the original contract date. Cash proceeds from home closings are included in Homebuilding cash and cash equivalents in the Company's consolidated balance sheets. Contract liabilities include customer deposits liability related to sold but undelivered homes that are included in other liabilities in the Company's consolidated balance sheets. The Company periodically elects to sell parcels of land to third parties. Cash consideration from land sales is typically due on the closing date, which is generally when performance obligations are satisfied and revenue is recognized as title to and possession of the property are transferred to the buyer.Title premiums on policies issued directly by the Company are recognized as revenue on the effective date of the title policies. Escrow fees and loan origination revenues are recognized at the time the related real estate transactions are completed, usually upon the close of escrow. Expected gains and losses from the sale of loans and their related servicing rights are included in the measurement of all written loan commitments that are accounted for at fair value through earnings at the time of commitment. Interest income on loans held-for-sale and loans held-for-investment is recognized as earned over the terms of the mortgage loans based on the contractual interest rates. Management Fees and General Contractor Revenue The Multifamily segment provides management services with respect to the development, construction and property management of rental projects in joint ventures in which the Company has investments. As a result, the Multifamily segment earns and receives fees, which are generally based upon a stated percentage of development and construction costs and a percentage of gross rental collections. In addition, the Multifamily segment provides general contractor services for the construction of some of its rental projects. Both management fees and general contractor revenue are recognized over the period in which the services are performed using an input method, which properly depicts the level of effort required to complete the management or construction services. These customer contracts require the Company to provide management and general contractor services which represents a performance obligation that the Company satisfies over time. Management fees and general contractor services in the Multifamily segment are included in Multifamily revenue. |
Advertising Costs | The Company expenses advertising costs as incurred. |
Share-Based Payments | The Company has share-based awards outstanding under the 2016 Equity Incentive Plan (the "Plan"), which provides for the granting of stock options, stock appreciation rights, restricted common stock ("nonvested shares") and other share based awards to officers, associates and directors. The exercise prices of stock options may not be less than the market value of the common stock on the date of the grant. Exercises are permitted in installments determined when options are granted. Each stock option will expire on a date determined at the time of the grant, but not more than 10 years after the date of the grant. The Company accounts for stock option awards and nonvested share awards granted under the Plan based on the estimated grant date fair value. |
Cash And Cash Equivalents | The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Due to the short maturity period of cash equivalents, the carrying amounts of these instruments approximate their fair values. Homebuilding restricted cash consists of customer deposits on home sales held in restricted accounts until title transfers to the homebuyer, as required by the state and local governments in which the homes were sold, as well as funds on deposit to secure and support performance obligations. Financial Services restricted cash consists of upfront deposits and application fees LMF Commercial receives before originating loans and is recognized as income once the loan has been originated, as well as cash held in escrow by the Company’s loan service provider on behalf of customers and lenders and is disbursed in accordance with agreements between the transacting parties. |
Restricted Cash | The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Due to the short maturity period of cash equivalents, the carrying amounts of these instruments approximate their fair values. Homebuilding restricted cash consists of customer deposits on home sales held in restricted accounts until title transfers to the homebuyer, as required by the state and local governments in which the homes were sold, as well as funds on deposit to secure and support performance obligations. Financial Services restricted cash consists of upfront deposits and application fees LMF Commercial receives before originating loans and is recognized as income once the loan has been originated, as well as cash held in escrow by the Company’s loan service provider on behalf of customers and lenders and is disbursed in accordance with agreements between the transacting parties. |
Receivables | At November 30, 2022 and 2021, Homebuilding accounts receivable primarily related to receivables from land banks for land development, rebates and joint ventures. The Company performs ongoing credit evaluations of its customers and generally does not require collateral for accounts receivable. Mortgages and notes receivable arising from the sale of homes and land are generally collateralized by the property sold to the buyer. Allowances are maintained for potential credit losses based on historical experience, present economic conditions and other factors considered relevant by the Company. |
Inventories | 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. Inventory costs include land, land development and home construction costs, real estate taxes, deposits on land purchase contracts and interest related to development and construction. Construction overhead and selling expenses are expensed as incurred. Homes held-for-sale are classified as inventories until delivered. Land, land development, amenities and other costs are accumulated by specific area and allocated to homes within the respective areas. The Company reviews its inventory for indicators of impairment by evaluating each community during each reporting period. The inventory within each community is categorized as finished homes and construction in progress or land under development based on the development state of the community. There were 1,200 and 1,259 active communities, excluding unconsolidated entities, as of November 30, 2022 and 2021, respectively. If the undiscounted cash flows expected to be generated by a community are less than its carrying amount, an impairment charge is recorded to write down the carrying amount of such community to its estimated fair value. In conducting its review for indicators of impairment on a community level, the Company evaluates, among other things, the margins on homes that have been delivered, margins on homes under sales contracts in backlog, projected margins with regard to future home sales over the life of the community, projected margins with regard to future land sales and the estimated fair value of the land itself. The Company pays particular attention to communities in which inventory is moving at a slower than anticipated absorption pace and communities whose average sales price and/or margins are trending downward and are anticipated to continue to trend downward. From this review, the Company identifies communities in which to assess if the carrying values exceed their undiscounted projected cash flows. The Company estimates the fair value of its communities using a discounted cash flow model. The projected cash flows for each community are significantly impacted by estimates related to market supply and demand, product type by community, homesite sizes, sales pace, sales prices, sales incentives, construction costs, sales and marketing expenses, the local economy, competitive conditions, labor costs, costs of materials and other factors for that particular community. Every division evaluates the historical performance of each of its communities as well as current trends in the market and economy impacting the community and its surrounding areas. These trends are analyzed for each of the estimates listed above. Each of the homebuilding markets in which the Company operates is unique, as homebuilding has historically been a local business driven by local market conditions and demographics. Each of the Company’s homebuilding markets has specific supply and demand relationships reflective of local economic conditions. The Company’s projected cash flows are impacted by many assumptions. Some of the most critical assumptions in the Company’s cash flow model are projected absorption pace for home sales, sales prices and costs to build and deliver homes on a community by community basis. In order to arrive at the assumed absorption pace for home sales and the assumed sales prices included in the Company’s cash flow model, the Company analyzes its historical absorption pace and historical sales prices in the community and in other comparable communities in the geographical area. In addition, the Company considers internal and external market studies and places greater emphasis on more current metrics and trends, which generally include, but are not limited to, statistics and forecasts on population demographics and on sales prices in neighboring communities, unemployment rates and availability and sales prices of competing product in the geographical area where the community is located as well as the absorption pace realized in its most recent quarters and the sales prices included in the Company's current backlog for such communities. Generally, if the Company notices a variation from historical results over a span of two fiscal quarters, the Company considers such variation to be the establishment of a trend and adjusts its historical information accordingly in order to develop assumptions on the projected absorption pace and sales prices in the cash flow model for a community. In order to arrive at the Company’s assumed costs to build and deliver homes, the Company generally assumes a cost structure reflecting contracts currently in place with its vendors adjusted for any anticipated cost reduction initiatives or increases in cost structure. Those costs assumed are used in the cash flow model for the Company’s communities. Since the estimates and assumptions included in the Company’s cash flow models are based upon historical results and projected trends, they do not anticipate unexpected changes in market conditions or strategies that may lead the Company to incur additional impairment charges in the future. The determination of fair value requires discounting the estimated cash flows at a rate the Company believes a market participant would determine to be commensurate with the inherent risks associated with the assets and related estimated cash flow streams. The discount rate used in determining each asset’s fair value depends on the community’s projected life and development stage. 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. |
Inventories, Land Under Option Contracts | The Company also has access to land inventory through option contracts, which generally enables the Company to defer acquiring portions of properties owned by third parties (including land funds) and unconsolidated entities until it has determined whether to exercise its option. The use of option contracts allows the Company to reduce the financial risks associated with long-term land holdings. A majority of the Company’s option contracts require a non-refundable cash deposit or irrevocable letter of credit based on a percentage of the purchase price of the land. As of November 30, 2022, the Company had $2.0 billion of nonrefundable option deposits and pre-acquisition costs related to certain of these homesites, which were included in inventories in the accompanying consolidated balance sheet. The Company’s option contracts sometimes include price adjustment provisions, which adjust the purchase price of the land to its approximate fair value at the time of acquisition or are based on the fair value at the time of takedown. |
Investments in Unconsolidated Entities | The Company evaluates the long-lived assets in unconsolidated entities for indicators of impairment during each reporting period. If a valuation adjustment is recorded by an unconsolidated entity related to its assets, the Company generally uses a discount rate between 10% and 20%, subject to the perceived risks associated with the community’s cash flow streams relative to its inventory or operating assets. The Company’s proportionate share of a valuation adjustment is reflected in the Company's Homebuilding, Multifamily or Lennar Other equity in earnings (loss) from unconsolidated entities with a corresponding decrease to its Homebuilding, Multifamily or Lennar Other investment in unconsolidated entities. Additionally, the Company evaluates if a decrease in the fair value of an investment below its carrying value is other-than-temporary. This evaluation includes certain critical assumptions made by management: (1) projected future distributions from the unconsolidated entities, (2) discount rates applied to the future distributions and (3) various other factors, which include age of the venture, relationships with the other partners and banks, general economic market conditions, land status and liquidity needs of the unconsolidated entity. If the decline in the fair value of the investment is other-than-temporary, then these losses are included in Homebuilding other income, net, Multifamily other gain (loss) or Lennar Other other gain (loss). The Company tracks its share of cumulative earnings and distributions of its joint ventures ("JVs"). For purposes of classifying distributions received from JVs in the Company’s consolidated statements of cash flows, cumulative distributions are treated as returns on capital to the extent of cumulative earnings and included in the Company’s consolidated statements of cash flows as operating activities. Cumulative distributions in excess of the Company’s share of cumulative earnings are treated as returns of capital and included in the Company’s consolidated statements of cash flows as cash from investing activities. |
Variable Interest Entities | GAAP requires the assessment of whether an entity is a VIE and, if so, if the Company is the primary beneficiary at the inception of the entity or at a reconsideration event. Additionally, GAAP requires the consolidation of VIEs in which an enterprise has a controlling financial interest. A controlling financial interest will have both of the following characteristics: (a) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company’s variable interest in VIEs may be in the form of (1) equity ownership, (2) contracts to purchase assets, (3) management and development agreements between the Company and a VIE, (4) loans provided by the Company to a VIE or other partner and/or (5) guarantees provided by members to banks and other third parties. The Company examines specific criteria and uses its judgment when determining if it is the primary beneficiary of a VIE. Factors considered in determining whether the Company is the primary beneficiary include risk and reward sharing, experience and financial condition of other partner(s), voting rights, involvement in day-to-day capital and operating decisions, representation on a VIE’s executive committee, existence of unilateral kick-out rights or voting rights, level of economic disproportionality, if any, between the Company and the other partner(s) and contracts to purchase assets from VIEs. The determination whether an entity is a VIE and, if so, whether the Company is the primary beneficiary may require it to exercise significant judgment. Generally, all major decision making in the Company’s joint ventures is shared among all partners. In particular, business plans and budgets are generally required to be unanimously approved by all partners. Usually, management and other fees earned by the Company are nominal and believed to be at market and there is no significant economic disproportionality between the Company and other partners. Generally, the Company purchases less than a majority of the JV’s assets and the purchase prices under its option contracts are believed to be at market. Generally, Homebuilding and Multifamily unconsolidated entities become VIEs due to insufficient equity at risk for the JV entity as the partner(s) continue to provide subordinated financial support in the form of capital contributions. Homebuilding and Multifamily unconsolidated entities become VIEs and consolidate if the other partner(s) lack the intent and financial wherewithal to remain in the entity. As a result, the Company continues to fund operations and debt paydowns through partner loans or substituted capital contributions. |
Goodwill | Goodwill Goodwill is recorded with acquisitions of businesses when the purchase price of the business exceeds the fair value of the net tangible and identifiable assets acquired. In accordance with ASC Topic 350, Intangibles-Goodwill and Other ("ASC 350"), the Company evaluates goodwill for potential impairment on at least an annual basis. The Company has the option to perform a qualitative or quantitative assessment to determine whether the fair value of a reporting unit exceeds its carrying value. Qualitative factors may include, but are not limited to economic conditions, industry and market considerations, cost factors, overall financial performance of the reporting units and other entity and reporting unit specific events. The fair value estimate is derived through various valuation methods, including the use of discounted expected future cash flows of each reporting unit. The expected future cash flows for each segment are significantly impacted by current market conditions. If these market conditions and resulting expected future cash flows for each reporting unit decline significantly, the actual results for each segment could differ from the Company's estimate, which would cause goodwill to be impaired. The annual goodwill impairment analysis was performed as of September 30, 2022, and no impairment was recorded. |
Operating Properties And Equipment | Operating properties and equipment are recorded at cost and are included in other assets in the consolidated balance sheets. The assets are depreciated over their estimated useful lives using the straight-line method. At the time operating properties and equipment are disposed of, the asset and related accumulated depreciation are removed from the accounts and any resulting gain or loss is credited or charged to earnings. The estimated useful life for operating properties is 30 years, for furniture, fixtures and equipment is two |
Investment Securities | The Company holds investment securities classified as available-for-sale or held-to-maturity. Available-for-sale securities are recorded at fair value. Any unrealized holding gains or losses on available-for-sale securities are reported as accumulated other comprehensive gain or loss, which is a separate component of stockholders’ equity, net of tax, until realized. Securities classified as held-to-maturity are carried at amortized cost because they are purchased with the intent and ability to hold to maturity. |
Income Taxes | The Company records income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and attributable to operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which the temporary differences are expected to be recovered or paid. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period when the changes are enacted. Interest related to unrecognized tax benefits is recognized in the financial statements as a component of income tax expense. A reduction of the carrying amounts of deferred tax assets by a valuation allowance is required if, based on the available evidence, it is more likely than not that such assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed each reporting period by the Company based on the consideration of all available positive and negative evidence using a "more-likely-than-not" standard with respect to whether deferred tax assets will be realized. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, actual earnings, forecasts of future profitability, the duration of statutory carryforward periods, the Company’s experience with loss carryforwards not expiring unused and tax planning alternatives. |
Other Liabilities | Reflected within the consolidated balance sheets, the other liabilities balance as of November 30, 2022 and 2021, included accrued interest payable, product warranty (as noted below), accrued bonuses, accrued wages and benefits, lease liabilities, deferred income, customer deposits, income taxes payable, and other accrued liabilities. |
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 Company regularly monitors the warranty reserve and makes adjustments to its pre-existing warranties in order to reflect changes in trends and historical data as information becomes available. Warranty reserves are included in Homebuilding other liabilities in the consolidated balance sheets. |
Self-Insurance | Reserves for estimated losses for construction defects, general liability and workers’ compensation have been established using the assistance of a third-party actuary. The third-party actuary uses the Company's historical warranty and construction defect data to assist management in estimating the unpaid claims, claim adjustment expenses and incurred but not reported claims reserves for the risks that the Company is assuming under the general liability and construction defect programs. The estimates include provisions for inflation, claims handling and legal fees. These estimates are subject to a high degree of variability due to uncertainties such as trends in construction defect claims relative to the markets and the types of products the Company builds, claim settlement patterns, insurance industry practices and legal interpretations. Given the high degree of judgment required in determining these estimated liability amounts, actual future costs could differ significantly from the Company's currently estimated amounts. The Company’s self-insurance reserve, net of expected recoveries, as of November 30, 2022 and 2021 was $210.1 million and $169.1 million and was included in Homebuilding other liabilities. Amounts incurred in excess of the Company's self-insurance occurrence or aggregate retention limits are covered by insurance up to the Company's purchased coverage levels. The Company's insurance policies are maintained with highly-rated underwriters for whom the Company believes counterparty default risk is not significant. |
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 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") are considered participating securities. |
Restrictions on Payment of Dividends | There are no restrictions on the payment of dividends on common stock by the Company. There are no agreements which restrict the payment of dividends by subsidiaries of the Company other than the need to maintain the financial ratios and net worth requirements under the Financial Services segment’s warehouse lines of credit, which restrict the payment of dividends from the Company’s mortgage subsidiaries following the occurrence and during the continuance of an event of default thereunder. |
401 (k) Plan | Under the Company’s 401(k) Plan (the "Plan"), contributions made by associates can be invested in a variety of mutual funds or proprietary funds provided by the Plan trustee. The Company may also make contributions for the benefit of associates. The Company records as compensation expense its contribution to the Plan. |
Loans Held-for-Sale | Loans held-for-sale by the Financial Services segment, including the rights to service the mortgage loans, are carried at fair value and changes in fair value are reflected in earnings. Premiums and discounts recorded on these loans are presented as an adjustment to the carrying amount of the loans and are not amortized. Management believes carrying loans held-for-sale at fair value improves financial reporting by mitigating volatility in reported earnings caused by measuring the fair value of the loans and the derivative instruments used to economically hedge them without having to apply complex hedge accounting provisions. In addition, the Financial Services segment 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 servicing rights is included in Financial Services' other assets as of November 30, 2022 and 2021. Fair value of the servicing rights is determined based on values in the Company’s servicing sales contracts. The originated mortgage loans are classified as loans held-for-sale and are recorded at fair value. The Company elected the fair value option for LMF Commercial's loans held-for-sale in accordance with Accounting Standards Codification ("ASC") 825, Financial Instruments |
Provision for Losses | The Company establishes reserves for possible losses associated with mortgage loans previously originated and sold to investors 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. Loan origination liabilities are included in Financial Services’ liabilities in the consolidated balance sheets. |
Loans Held-for-Investment, Net | Loans for which the Company has the positive intent and ability to hold to maturity consist of mortgage loans carried at the principal amount outstanding, net of unamortized discounts and allowance for loan losses. Discounts are amortized over the estimated lives of the loans using the interest method. The Financial Services segment also provides an allowance for credit losses. The provision recorded and the adequacy of the related allowance is determined by management’s continuing evaluation of the loan portfolio in light of past loan loss experience, credit worthiness and nature of underlying collateral, present economic conditions and other factors considered relevant by the Company’s management. Anticipated changes in economic factors, which may influence the level of the |
Derivative Financial Instruments | The Financial Services segment, in the normal course of business, uses derivative financial instruments to reduce its exposure to fluctuations in mortgage-related interest rates. The segment uses mortgage-backed securities ("MBS") forward commitments, option contracts, future contracts and investor commitments to protect the value of fixed rate-locked loan commitments and loans held-for-sale from fluctuations in mortgage-related interest rates. These derivative financial instruments are carried at fair value with the changes in fair value included in Financial Services revenues. |
New Accounting Pronouncements | Recently Adopted 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 was effective for the Company’s fiscal year beginning December 1, 2021. The adoption of ASU 2019-12 did not have a material impact on the Company's consolidated financial statements. In March 2020, the Financial Accounting Standards Board (FASB) issued ASU 2020-04, “Reference Rate Reform,” which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (LIBOR) or by another reference rate expected to be discontinued. The guidance was effective beginning March 12, 2020 and can be applied prospectively through December 31, 2022. In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform - Scope,” which clarified the scope and application of the original guidance. The adoption of ASU 2020-04 did not have a material impact on the Company's consolidated financial statements. Reclassifications Certain prior year amounts in the consolidated financial statements have been reclassified to conform with the 2022 presentation. These reclassifications had no impact on the Company's total assets, total equity, revenues or net earnings in its consolidated financial statements. |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule Of Lennar Homebuilding Receivables | Balances for the years ended November 30, 2022 and 2021 are noted below: November 30, (In thousands) 2022 2021 Accounts receivable $ 490,420 245,004 Mortgages and notes receivable 185,739 247,805 676,159 492,809 Allowance for credit losses (2,179) (2,531) Receivables, net (1) $ 673,980 490,278 (1) At November 30, 2022 and 2021, receivables, net included $50 million and $85 million, respectively, related to a short-term loan due from Upward America that was repaid subsequent to each year end. LMF Commercial originated commercial loans as follows: November 30, (Dollars in thousands) 2022 2021 Originations (1) $ 740,345 770,107 Sold $ 715,933 931,023 Securitizations 6 6 (1) During both years ended November 30, 2022 and 2021 all the commercial loans originated were recorded as loans held-for-sale, which are held at fair value. |
Communities Reviewed for Indicators of Impairment and Communities with Valuation Adjustments Needed | aluation adjustments for finished homes and construction in progress were included in Homebuilding costs and expenses in the Company's consolidated statements of operations and comprehensive income (loss) for the years ended November 30, 2022 and 2021. The table below summarizes communities reviewed for indicators of impairment and communities with valuation adjustments recorded: At November 30, Communities with valuation adjustments # of communities with potential indicators of impairment # of communities Fair Value Valuation Adjustments 2022 15 9 $ 105,042 $ 33,563 2021 4 1 5,267 11,849 Years Ended November 30, 2022 2021 2020 (In thousands) Fair Carrying Value Fair Value Total Carrying Value Fair Value Total Losses, Net (1) Carrying Value Fair Value Total Losses, Net (1) Non-financial assets Homebuilding: Finished homes and construction in progress (2) Level 3 $ 347,300 295,663 (51,637) 32,364 16,342 (16,022) 176,637 148,684 (27,953) Land and land under development (2) Level 3 183,737 126,135 (57,602) 35,775 26,841 (8,934) 182,137 92,355 (89,782) Other assets (2) Level 3 — — — 12,764 12,024 (740) — — — Investments in unconsolidated entities (2) Level 3 1,454 — (1,454) — — — — — — (1) Represents losses due to valuation adjustments and deposit and acore write-offs recorded during the year. (2) Valuation adjustments for finished homes and construction in progress, and land and land under development were included in Homebuilding costs and expenses. During the year ended November 30, 2022, total losses, net, for land and land underdevelopment |
Schedule of Significant Unobservable Inputs Used to Determine Fair Value of Communities | 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: Years Ended November 30, 2022 2021 Unobservable inputs Range Average selling price (1) $233,000 — $753,000 $635,000 Absorption rate per quarter (homes) 2 — 12 11 Discount rate 20% 20% November 30, 2022 Discount rates at purchase 6% — 84% Coupon rates 2.0% — 5.3% Distribution dates October 2027 — December 2028 Stated maturity dates October 2050 — December 2051 November 30, 2022 Unobservable inputs Mortgage prepayment rate 8% Discount rate 13% Delinquency rate 7% |
Schedule Of Operating Properties And Equipment | Operating properties and equipment are included in Homebuilding other assets in the consolidated balance sheets and were as follows: November 30, (In thousands) 2022 2021 Operating properties (1) $ 305,743 309,367 Leasehold improvements 68,951 56,620 Furniture, fixtures and equipment 207,223 172,774 581,917 538,761 Accumulated depreciation and amortization (226,822) (198,855) $ 355,095 339,906 (1) Operating properties primarily include solar systems, rental operations and commercial properties. |
Schedule Of Interest Expense | Interest expense was included in costs of homes sold, costs of land sold and other interest expense as follows: Years Ended November 30, (In thousands) 2022 2021 2020 Interest expense in costs of homes sold $ 293,105 342,756 349,109 Interest expense in costs of land sold 498 2,475 2,594 Other interest expense (1) 19,128 20,142 22,401 Total interest expense $ 312,731 365,373 374,104 (1) Included in Homebuilding other income (expense), net. |
Schedule Of Warranty Reserve | The activity in the Company’s warranty reserve was as follows: Years Ended November 30, (In thousands) 2022 2021 Warranty reserve, beginning of year $ 377,021 341,765 Warranties issued 274,766 217,641 Adjustments to pre-existing warranties from changes in estimates (1) 26,222 29,436 Payments (259,992) (211,821) Warranty reserve, end of year $ 418,017 377,021 (1) The adjustments to pre-existing warranties from changes in estimates during the years ended November 30, 2022 and 2021 primarily related to specific claims in certain of the Company's homebuilding communities and other adjustments. |
Repurchase of Company's Common Stock | The following table provides information about the Company’s repurchases of Class A and Class B common stock: Years Ended November 30, 2022 November 30, 2021 (Dollars in thousands, except price per share) Class A Class B Class A Class B Shares repurchased 9,628,203 1,339,797 13,910,000 100,000 Total purchase price $ 868,788 $ 98,613 $ 1,357,081 $ 8,197 Average price per share $ 90.23 $ 73.60 $ 97.56 $ 81.97 |
Compensation Expense Related to Company's Share-based Awards | Compensation expense related to the Company’s share-based awards was as follows: Years Ended November 30, (In thousands) 2022 2021 2020 Total compensation expense for nonvested share-based awards $ 184,086 135,090 107,131 |
Schedule of Nonvested Shares Activity | A summary of the Company’s nonvested shares activity for the year ended November 30, 2022 was as follows: Shares Weighted Average Grant Date Fair Value Nonvested shares at November 30, 2021 3,163,790 $ 66.07 Grants 1,697,986 $ 88.92 Vested (1,581,744) $ 61.39 Forfeited (127,886) $ 74.38 Nonvested shares at November 30, 2022 3,152,146 $ 80.39 |
Loan Origination Liabilities | The activity in the Company’s loan origination liabilities was as follows: Years Ended November 30, (In thousands) 2022 2021 Loan origination liabilities, beginning of year $ 11,670 7,569 Provision for losses 966 4,639 Payments (849) (538) Loan origination liabilities, end of year $ 11,787 11,670 |
Operating And Reporting Segme_2
Operating And Reporting Segments (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The assets and liabilities related to the Company’s segments were as follows: (In thousands) November 30, 2022 Assets: Homebuilding Financial Multifamily Lennar Total Cash and cash equivalents $ 4,616,124 139,378 17,827 5,391 4,778,720 Restricted cash 23,046 14,004 — — 37,050 Receivables, net (1) 673,980 826,163 114,134 — 1,614,277 Inventories 21,432,011 — 430,442 — 21,862,453 Loans held-for-sale (2) — 1,776,311 — — 1,776,311 Investments in equity securities (3) 391,026 391,026 Investments available-for-sale (4) — — — 35,482 35,482 Loans held-for-investments, net — 45,636 — — 45,636 Investments held-to-maturity — 143,251 — — 143,251 Investments in unconsolidated entities 1,173,164 — 648,126 316,523 2,137,813 Goodwill 3,442,359 189,699 — — 3,632,058 Other assets 1,323,478 119,815 46,808 40,117 1,530,218 $ 32,684,162 3,254,257 1,257,337 788,539 37,984,295 Liabilities: Notes and other debts payable, net $ 4,047,294 2,135,093 16,749 — 6,199,136 Accounts payable and other liabilities 6,931,352 218,811 296,735 97,894 7,544,792 $ 10,978,646 2,353,904 313,484 97,894 13,743,928 (In thousands) November 30, 2021 Assets: Homebuilding Financial Multifamily Lennar Total Cash and cash equivalents $ 2,735,213 167,021 16,850 2,660 2,921,744 Restricted cash 21,927 12,012 — — 33,939 Receivables, net (1) 490,278 708,165 98,405 — 1,296,848 Inventories 18,715,304 — 454,093 — 19,169,397 Loans held-for-sale (2) — 1,636,351 — — 1,636,351 Investments in equity securities (3) — — — 1,006,599 1,006,599 Investments available-for-sale (4) — — — 41,654 41,654 Loans held-for-investments, net — 44,582 — — 44,582 Investments held-to-maturity — 157,808 — — 157,808 Investments in unconsolidated entities 972,084 — 654,029 346,270 1,972,383 Goodwill 3,442,359 189,699 — — 3,632,058 Other assets 1,090,654 48,729 88,370 66,662 1,294,415 $ 27,467,819 2,964,367 1,311,747 1,463,845 33,207,778 Liabilities: Notes and other debts payable, net $ 4,652,338 1,726,026 — — 6,378,364 Accounts payable and other liabilities 5,217,904 180,317 288,930 145,981 5,833,132 $ 9,870,242 1,906,343 288,930 145,981 12,211,496 (1) Receivables, net for Financial Services primarily related to loans sold to investors for which the Company had not yet been paid as of November 30, 2022 and November 30, 2021, respectively. (2) Loans held-for-sale related to unsold residential and commercial loans carried at fair value. (3) Investments in equity securities include investments of $178.0 million and $100.1 million without readily available fair values as of November 30, 2022 and November 30, 2021, respectively. (4) Investments available-for-sale are carried at fair value with changes in fair value recorded as a component of accumulated other comprehensive income (loss) on the consolidated balance sheets. Financial information relating to the Company’s segments was as follows: Year ended November 30, 2022 (In thousands) Homebuilding Financial Multifamily Lennar Corporate and Total Revenues $ 31,951,335 809,680 865,603 44,392 — 33,671,010 Operating earnings (loss) 6,777,317 383,302 69,493 (734,649) — 6,495,463 Corporate general and administrative expenses — — — — (414,498) (414,498) Charitable foundation contribution — — — — (66,399) (66,399) Earnings (loss) before income taxes 6,777,317 383,302 69,493 (734,649) (480,897) 6,014,566 Year ended November 30, 2021 (In thousands) Homebuilding Financial Multifamily Lennar Corporate and Total Revenues $ 25,545,242 898,745 665,232 21,457 — 27,130,676 Operating earnings 5,031,762 491,014 21,453 733,035 — 6,277,264 Corporate general and administrative expenses — — — — (398,381) (398,381) Charitable foundation contribution — — — — (59,825) (59,825) Earnings before income taxes 5,031,762 491,014 21,453 733,035 (458,206) 5,819,058 Year ended November 30, 2020 (In thousands) Homebuilding Financial Multifamily Lennar Corporate and Total Revenues $ 20,981,136 890,311 576,328 41,079 — 22,488,854 Operating earnings (loss) 2,988,907 480,952 22,681 (10,334) — 3,482,206 Corporate general and administrative expenses — — — — (333,446) (333,446) Charitable foundation contribution — — — — (24,972) (24,972) Earnings (loss) before income taxes 2,988,907 480,952 22,681 (10,334) (358,418) 3,123,788 (1) Financial Services operating earnings for the year ended November 30, 2022 included a $35.5 million one-time charge due to an increase in a litigation accrual related to a court judgment. (2) Operating loss for Lennar Other for the year ended November 30, 2022 included a $655.1 million mark-to-market unrealized loss on the Company's publicly traded technology investments. Operating earnings for Lennar Other for the year ended November 30, 2021 included a $510.8 million mark-to-market unrealized gain on the Company's publicly traded technology investments. Operating loss for Lennar Other for the year ended November 30, 2020 included a $25.0 million write-down of assets held by Rialto legacy funds because of the disruption in the capital markets as a result of COVID-19 and the economic shutdown. (3) Corporate and unallocated expenses primarily represent costs of operations at the Company's corporate headquarters in Miami. These operations include the Company's executive offices, information technology, treasury, corporate accounting and tax, legal, internal audit and human resources. Also included are property expenses related to the leases of corporate offices, data processing, general corporate expenses and charitable foundation contribution to the Lennar Foundation. The assets related to the Company's Homebuilding segments were as follows: (In thousands) East Central Texas West Other Corporate and Total Balance at November 30, 2022 $ 6,877,581 4,010,610 3,742,663 12,182,709 1,382,864 4,487,735 32,684,162 Balance at November 30, 2021 5,854,057 3,782,847 2,801,192 11,171,741 1,443,163 2,414,819 27,467,819 Financial information relating to the Company’s Homebuilding segments was as follows: Year ended November 30, 2022 (In thousands) East Central Texas West Other Total Revenues $ 9,266,013 5,846,023 4,227,771 12,571,386 40,142 31,951,335 Operating earnings (loss) 2,240,256 889,231 929,237 2,773,597 (55,004) 6,777,317 Interest expense 78,345 54,547 29,442 140,017 10,380 312,731 Depreciation and amortization 24,888 15,219 9,354 54,055 774 104,290 Net additions to operating properties and equipment 2,651 363 136 1,414 6,537 11,101 Year ended November 30, 2021 (In thousands) East Central Texas West Other Total Revenues $ 6,870,944 4,826,535 3,241,321 10,563,756 42,686 25,545,242 Operating earnings (loss) 1,455,432 720,419 730,465 2,192,446 (67,000) 5,031,762 Interest expense 90,314 58,899 28,764 176,633 10,763 365,373 Depreciation and amortization 24,531 16,118 9,821 49,691 1,238 101,399 Net additions to (disposals of) operating properties 219 239 (9) 26,375 14,950 41,774 Year ended November 30, 2020 (In thousands) East Central Texas West Other Total Homebuilding Revenues $ 5,715,028 4,093,693 2,709,681 8,437,167 25,567 20,981,136 Operating earnings (loss) 933,297 482,929 421,594 1,241,494 (90,407) 2,988,907 Interest expense 93,245 58,777 29,901 178,498 13,683 374,104 Depreciation and amortization 21,504 13,659 9,366 50,316 249 95,094 Net additions to (disposals of) operating properties and equipment 955 (11,370) 712 165,869 (32) 156,134 |
Schedule of Line of Credit Facilities | At November 30, 2022, the Financial Services warehouse facilities were 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: December 2022 (1) $ 800,000 May 2023 500,000 August 2023 1,000,000 Total - Residential facilities $ 2,300,000 LMF Commercial facilities maturing: December 2022 (1) $ 400,000 July 2023 50,000 November 2023 100,000 Total - LMF Commercial facilities $ 550,000 Total $ 2,850,000 (1) Subsequent to November 30, 2022, the maturity date was extended to December 2023. Borrowings and collateral under the facilities and their prior year predecessors were as follows: November 30, (In thousands) 2022 2021 Borrowings under the residential facilities $ 1,877,411 1,482,258 Collateral under the residential facilities 1,950,155 1,539,641 Borrowings under the LMF Commercial facilities 124,399 96,294 The Company's outstanding letters of credit and surety bonds are below: November 30, (In thousands) 2022 2021 Performance letters of credit $ 1,259,033 924,584 Financial letters of credit 503,659 425,843 Surety bonds 4,136,715 3,553,047 Anticipated future costs primarily for site improvements related to performance surety bonds 2,273,694 1,690,861 |
Schedule Of Lennar Homebuilding Receivables | Balances for the years ended November 30, 2022 and 2021 are noted below: November 30, (In thousands) 2022 2021 Accounts receivable $ 490,420 245,004 Mortgages and notes receivable 185,739 247,805 676,159 492,809 Allowance for credit losses (2,179) (2,531) Receivables, net (1) $ 673,980 490,278 (1) At November 30, 2022 and 2021, receivables, net included $50 million and $85 million, respectively, related to a short-term loan due from Upward America that was repaid subsequent to each year end. LMF Commercial originated commercial loans as follows: November 30, (Dollars in thousands) 2022 2021 Originations (1) $ 740,345 770,107 Sold $ 715,933 931,023 Securitizations 6 6 (1) During both years ended November 30, 2022 and 2021 all the commercial loans originated were recorded as loans held-for-sale, which are held at fair value. |
Debt Securities, Held-to-maturity | Details related to Financial Services' CMBS were as follows: (Dollars in thousands) November 30, 2022 November 30, 2021 Carrying value $ 143,251 157,808 Outstanding debt, net of debt issuance costs $ 133,283 147,474 Incurred interest rate 3.4 % 3.4 % |
Schedule of Significant Unobservable Inputs Used to Determine Fair Value of Communities | 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: Years Ended November 30, 2022 2021 Unobservable inputs Range Average selling price (1) $233,000 — $753,000 $635,000 Absorption rate per quarter (homes) 2 — 12 11 Discount rate 20% 20% November 30, 2022 Discount rates at purchase 6% — 84% Coupon rates 2.0% — 5.3% Distribution dates October 2027 — December 2028 Stated maturity dates October 2050 — December 2051 November 30, 2022 Unobservable inputs Mortgage prepayment rate 8% Discount rate 13% Delinquency rate 7% |
Unrealized Gain (Loss) on Investments | Years Ended November 30, (In thousands) 2022 2021 Blend Labs (BLND) mark-to-market $ (25,630) (6,744) Hippo (HIPO) mark-to-market (222,447) 207,634 Opendoor (OPEN) mark-to-market (265,276) 239,312 SmartRent (SMRT) mark-to-market (78,177) 79,483 Sonder (SOND) mark-to-market (2,339) — Sunnova (NOVA) mark-to-market (61,225) (8,883) Lennar Other unrealized gains (losses) from technology investments $ (655,094) 510,802 |
Lennar Homebuilding Investments
Lennar Homebuilding Investments In Unconsolidated Entities (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Unconsolidated Entities | The investments in the Company's Homebuilding unconsolidated entities were as follows: November 30, (In thousands) 2022 2021 Investments in unconsolidated entities (1) (2) $ 1,173,164 972,084 Underlying equity in unconsolidated entities' net assets (1) 1,504,315 1,301,719 (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. (2) Included in the Company's recorded investments in Homebuilding unconsolidated entities is the Company's 40% ownership of FivePoint. As of November 30, 2022 and 2021, the carrying amount of the Company's investment was $382.9 million and $381.6 million, respectively. Years Ended November 30, (In thousands) 2022 2021 2020 Land sales revenues (1) $ 94,513 57,944 99,935 Management fees and reimbursement of expenses, net of deferrals 20,792 16,464 2,363 (1) The Company does not include in its Homebuilding equity in loss from unconsolidated entities its pro-rata share of unconsolidated entities’ earnings resulting from land sales to its homebuilding divisions. Instead, the Company accounts for those earnings as a reduction of the cost of purchasing the land from the unconsolidated entities. This in effect defers recognition of the Company’s share of the unconsolidated entities’ earnings related to these sales until the Company delivers a home and title passes to a third-party homebuyer. Years Ended November 30, (In thousands) 2022 2021 2020 General contractor services, net of deferrals $ 498,142 549,400 400,808 General contractor costs 478,620 533,398 383,649 Land sales to joint ventures 237,477 15,105 83,944 Management fee income 63,823 56,573 56,253 Details of LMV I and LMV II as of and during the year ended November 30, 2022 are included below: (In thousands) LMV I LMV II Lennar's carrying value of investment $ 217,099 293,831 Equity commitments 2,204,016 1,257,700 Equity commitments called 2,152,324 1,206,664 Lennar's equity commitments 504,016 381,000 Lennar's equity commitments called 499,919 365,807 Lennar's remaining commitments 4,097 15,193 Distributions to Lennar 25,576 12,555 Summarized condensed financial information on a combined 100% basis related to the Company's unconsolidated entities that are accounted for under the equity method was as follows: (In thousands) November 30, 2022 Assets: Homebuilding Multifamily Lennar Total Cash and cash equivalents $ 366,276 53,121 413,698 833,095 Loans receivable — — 25,045 25,045 Real estate owned — — 213,103 213,103 Investment securities — — 2,543,715 2,543,715 Investments in partnerships — — 165,599 165,599 Inventories 5,391,285 1,000 — 5,392,285 Operating properties and equipment 56,687 7,090,294 — 7,146,981 Other assets 1,378,156 523,152 223,821 2,125,129 $ 7,192,404 7,667,567 3,584,981 18,444,952 Liabilities and equity: Accounts payable and other liabilities $ 994,603 245,266 170,649 1,410,518 Debt (1) 1,383,302 4,318,774 333,317 6,035,393 Equity 4,814,499 3,103,527 3,081,015 10,999,041 $ 7,192,404 7,667,567 3,584,981 18,444,952 Investments in unconsolidated entities $ 1,173,164 648,126 316,523 2,137,813 (In thousands) November 30, 2021 Assets: Homebuilding Multifamily Lennar Total Cash and cash equivalents $ 460,901 25,972 430,807 917,680 Loans receivable — — 65,971 65,971 Real estate owned — — 279,200 279,200 Investment securities — — 2,461,788 2,461,788 Investments in partnerships — — 346,042 346,042 Inventories 4,666,454 — — 4,666,454 Operating properties and equipment 44,802 6,406,500 — 6,451,302 Other assets 1,044,771 111,750 219,680 1,376,201 $ 6,216,928 6,544,222 3,803,488 16,564,638 Liabilities and equity: Accounts payable and other liabilities $ 904,078 240,928 179,879 1,324,885 Debt (1) 1,216,721 3,407,362 399,632 5,023,715 Equity 4,096,129 2,895,932 3,223,977 10,216,038 $ 6,216,928 6,544,222 3,803,488 16,564,638 Investments in unconsolidated entities $ 972,084 654,029 346,270 1,972,383 (1) Debt noted above is net of debt issuance costs. As of November 30, 2022 and 2021, this includes $18.4 million and $11.9 million, respectively, for Homebuilding, $26.4 million and $23.4 million, respectively, for Multifamily and an immaterial amount of debt issuance costs for Lennar Other. (In thousands) Statement of Operations Years Ended: Revenues Cost and expenses Other income (expense), net (1) Net earnings (loss) of unconsolidated entities Equity in earnings (loss) from unconsolidated entities November 30, 2022 $ 1,747,336 1,695,272 197,056 249,120 (36,302) November 30, 2021 1,383,266 1,448,775 187,625 122,116 48,993 November 30, 2020 1,362,686 1,221,873 (244,680) (103,867) (13,939) (1) Other income (expense), net included realized and unrealized gains (losses) on investments. |
Homebuilding Senior Notes And_2
Homebuilding Senior Notes And Other Debts Payable (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule Of Senior Notes And Other Debts Payable | November 30, (Dollars in thousands) 2022 2021 4.875% senior notes due December 2023 $ 399,169 398,345 4.500% senior notes due 2024 648,975 648,253 5.875% senior notes due 2024 434,128 438,810 4.750% senior notes due 2025 498,892 498,446 5.25% senior notes due 2026 404,257 405,497 5.00% senior notes due 2027 351,741 352,124 4.75% senior notes due 2027 896,259 895,510 4.750% senior notes due 2022 — 573,840 Mortgage notes on land and other debt 413,873 441,513 $ 4,047,294 4,652,338 The terms of each of the Company's senior notes outstanding at November 30, 2022 were as follows: Senior Notes Outstanding (1) Principal Amount Net Proceeds (2) Price Date Issued (Dollars in thousands) 4.875% senior notes due December 2023 $ 400,000 393,622 99.169 % November 2015 4.500% senior notes due 2024 650,000 644,838 100 % April 2017 5.875% senior notes due 2024 425,000 (3) (3) (3) 4.750% senior notes due 2025 500,000 495,528 100 % April 2015 5.25% senior notes due 2026 400,000 (3) (3) (3) 5.00% senior notes due 2027 350,000 (3) (3) (3) 4.75% senior notes due 2027 900,000 894,650 100 % November 2017 (1) Interest is payable semi-annually for each of the series of senior notes. The senior notes are unsecured and unsubordinated, but are guaranteed by substantially all of the Company's 100% owned homebuilding subsidiaries. (2) The Company generally has historically used the net proceeds for working capital and general corporate purposes, which can include the repayment or repurchase of other outstanding senior notes. (3) These notes were obligations of CalAtlantic when it was acquired, and were subsequently exchanged in part for notes of the Company. As part of purchase accounting, the senior notes have been recorded at their fair value as of the date of acquisition (February 12, 2018). |
Schedule of Line of Credit Facilities | At November 30, 2022, the Financial Services warehouse facilities were 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: December 2022 (1) $ 800,000 May 2023 500,000 August 2023 1,000,000 Total - Residential facilities $ 2,300,000 LMF Commercial facilities maturing: December 2022 (1) $ 400,000 July 2023 50,000 November 2023 100,000 Total - LMF Commercial facilities $ 550,000 Total $ 2,850,000 (1) Subsequent to November 30, 2022, the maturity date was extended to December 2023. Borrowings and collateral under the facilities and their prior year predecessors were as follows: November 30, (In thousands) 2022 2021 Borrowings under the residential facilities $ 1,877,411 1,482,258 Collateral under the residential facilities 1,950,155 1,539,641 Borrowings under the LMF Commercial facilities 124,399 96,294 The Company's outstanding letters of credit and surety bonds are below: November 30, (In thousands) 2022 2021 Performance letters of credit $ 1,259,033 924,584 Financial letters of credit 503,659 425,843 Surety bonds 4,136,715 3,553,047 Anticipated future costs primarily for site improvements related to performance surety bonds 2,273,694 1,690,861 |
Schedule Of Maturities Of Senior Notes And Other Debts Payable | The minimum aggregate principal maturities of Homebuilding senior notes and other debts payable during the five years subsequent to November 30, 2022 and thereafter are as follows: (In thousands) Debt Maturities 2023 $ 223,130 2024 1,537,367 2025 566,124 2026 404,486 2027 1,265,349 Thereafter 42,415 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Benefit (Provision) for Income Taxes | The provision for income taxes consisted of the following: Years Ended November 30, (In thousands) 2022 2021 2020 Current: Federal $ 1,282,037 924,474 428,907 State 330,681 245,941 135,246 $ 1,612,718 1,170,415 564,153 Deferred: Federal $ (193,667) 149,349 59,065 State (52,986) 42,745 33,017 (246,653) 192,094 92,082 $ 1,366,065 1,362,509 656,235 |
Reconciliation Of Statutory Rate And Effective Tax Rate | A reconciliation of the statutory rate and the effective tax rate was as follows: Percentage of Pretax Income 2022 2021 2020 Statutory rate 21.00 % 21.00 % 21.00 % State income taxes, net of federal income tax benefit 4.52 4.03 4.00 Tax credits (1) (2) (2.16) (1.73) (4.46) Nondeductible compensation — 0.49 0.57 Tax reserves and interest expense, net (3) (0.83) 0.03 — Deferred tax asset valuation allowance, net — (0.01) — Other 0.31 (0.29) (0.09) Effective rate 22.84 % 23.52 % 21.02 % (1) During fiscal year 2022, Congress enacted the Inflation Reduction Act which included a retroactive extension of the new energy efficient home tax credit through 2032. (2) During fiscal year 2020, Congress extended the new energy efficient home tax credit for homes delivered from 2018 to 2021, with retroactive effect for 2018 and 2019. (3) Includes a $50.2 million benefit related to the resolution of an uncertain tax position during fiscal year 2022. |
Schedule of Deferred Income Taxes Assets And Liabilities | The tax effects of significant temporary differences that give rise to the net deferred tax assets were as follows: November 30, (In thousands) 2022 2021 Deferred tax assets: Inventory valuation adjustments $ 83,330 94,624 Reserves and accruals 199,451 187,466 Net operating loss carryforwards 61,741 74,902 Capitalized expenses 241,887 174,405 Investments in unconsolidated entities 16,311 48,913 Employee stock incentive plan 37,573 37,813 Other assets 82,673 49,828 Total deferred tax assets 722,966 667,951 Valuation allowance (2,903) (2,693) Total deferred tax assets after valuation allowance 720,063 665,258 Deferred tax liabilities: Capitalized expenses 177,726 187,332 Deferred income 253,659 272,827 Unrealized gains on investments in equity securities — 164,534 Other liabilities 46,270 44,810 Total deferred tax liabilities 477,655 669,503 Net deferred tax assets (liabilities) $ 242,408 (4,245) The detail of the Company's net deferred tax assets (liabilities) was as follows: November 30, (In thousands) 2022 2021 Net deferred tax assets (liabilities): (1) Homebuilding $ 154,143 84,198 Financial Services 15,376 (1,431) Multifamily 26,675 64,247 Lennar Other 46,214 (151,259) Net deferred tax assets (liabilities) $ 242,408 (4,245) (1) Net deferred tax assets and net deferred tax liabilities detailed above are included within other assets and other liabilities in the respective segments. November 30, (In thousands) 2022 2021 Valuation allowance (1) $ (2,903) (2,693) Federal tax effected NOL carryforwards (2) 29,672 32,968 State tax effected NOL carryforwards (3) 32,069 41,935 (1) As of November 30, 2022 and 2021, the deferred tax assets included valuation allowances primarily related to state net operating loss ("NOL") carryforwards that are not more likely than not to be utilized due to an inability to carry back these losses in most states and short carryforward periods that exist in certain states. (2) At November 30, 2022 and 2021, the Company had federal tax effected NOL carryforwards that may be carried forward to offset future taxable income and begin to expire in 2029. (3) At November 30, 2022 and 2021, the Company had state tax effected NOL carryforwards that may be carried forward from 10 to 20 years or indefinitely, depending on the tax jurisdiction, with certain losses expiring between 2022 and 2039. |
Summary Of Changes In Gross Unrecognized Tax Benefits | The following table summarizes the changes in gross unrecognized tax benefits: Years Ended November 30, (In thousands) 2022 2021 2020 Gross unrecognized tax benefits, beginning of year $ 12,285 12,285 12,856 Lapse of statute of limitations — — (349) Decreases due to settlements with tax authorities (12,285) — (222) Gross unrecognized tax benefits, end of year $ — 12,285 12,285 The following summarizes the changes in interest and penalties accrued with respect to gross unrecognized tax benefits: November 30, (In thousands) 2022 2021 Accrued interest and penalties, beginning of the year $ 59,937 57,764 Accrual of interest and penalties (primarily related to state audits) — 2,173 Reduction of interest and penalties (59,937) — Accrued interest and penalties, end of the year $ — 59,937 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | Basic and diluted earnings per share were calculated as follows: Years Ended November 30, (In thousands, except per share amounts) 2022 2021 2020 Numerator: Net earnings attributable to Lennar $ 4,614,125 4,430,111 2,465,036 Less: distributed earnings allocated to nonvested shares 4,471 2,690 1,658 Less: undistributed earnings allocated to nonvested shares 47,509 50,229 26,731 Numerator for basic earnings per share 4,562,145 4,377,192 2,436,647 Less: net amount attributable to noncontrolling interests in Rialto's Carried Interest Incentive Plan (1) 4,919 2,907 8,971 Numerator for diluted earnings per share $ 4,557,226 4,374,285 2,427,676 Denominator: Denominator for basic earnings per share - weighted average common shares outstanding 289,824 306,612 309,406 Effect of dilutive securities: Share-based payments — — 1 Denominator for diluted earnings per share - weighted average common shares outstanding 289,824 306,612 309,407 Basic earnings per share $ 15.74 14.28 7.88 Diluted earnings per share $ 15.72 14.27 7.85 (1) The amounts above relate to Rialto's Carried Interest Incentive Plan and represent the difference between the advanced tax distributions received by the Lennar Other segment and the amount Lennar, as the parent company, is assumed to own. |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Disclosure (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts and Estimated Fair Value of Financial Instruments | The following table presents the carrying amounts and estimated fair values of financial instruments held or issued by the Company at November 30, 2022 and 2021, 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. November 30, 2022 2021 Fair Value Carrying Fair Carrying Fair (In thousands) Hierarchy Amount Value Amount Value ASSETS Financial Services: Loans held-for-investment, net Level 3 $ 45,636 45,647 44,582 44,594 Investments held-to-maturity Level 3 143,251 143,208 157,808 184,495 LIABILITIES Homebuilding senior notes and other debts payable, net Level 2 $ 4,047,294 3,993,242 4,652,338 5,046,721 Financial Services notes and other debts payable, net Level 2 2,135,093 2,135,797 1,726,026 1,726,860 Multifamily notes payable, net Level 2 16,749 16,749 — — |
Fair Value Measured on a Recurring Basis | The Company’s financial instruments measured at fair value on a recurring basis are summarized below: Fair Value at November 30, (In thousands) Fair 2022 2021 Financial Services Assets: Residential loans held-for-sale Level 2 $ 1,750,712 1,636,283 LMF Commercial loans held-for-sale Level 3 25,599 68 Mortgage servicing rights Level 3 3,463 2,492 Forward options Level 1 9,473 — Lennar Other: Investments in equity securities Level 1 212,981 906,539 Investments available-for-sale Level 3 35,482 41,654 Residential and LMF Commercial loans held-for-sale in the table above include: November 30, 2022 2021 (In thousands) Aggregate Principal Balance Change in Fair Value Aggregate Principal Balance Change in Fair Value Residential loans held-for-sale $ 1,734,480 16,233 1,586,764 49,519 LMF Commercial loans held-for-sale 24,000 1,599 — 68 |
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: Years Ended November 30, 2022 2021 (In thousands) Mortgage servicing rights LMF Commercial loans held-for-sale Mortgage servicing rights LMF Commercial loans held-for-sale Beginning of year $ 2,492 68 2,113 193,588 Purchases/loan originations 353 740,345 584 774,905 Sales/loan originations sold, including those not settled — (715,933) — (931,023) Disposals/settlements (1) (404) — (1,365) (35,837) Changes in fair value (2) 1,022 1,599 1,160 (388) Interest and principal paydowns — (480) — (1,177) End of year $ 3,463 25,599 2,492 68 (1) The year ended November 30, 2021 includes $28.5 million of loans sold/paid outside of LMF Commercial ’s six securitizations and $7.3 million of loans converted to loans held-for-investment. (2) Changes in fair value for LMF Commercial loans held-for-sale and Financial Services mortgage servicing rights are included in Financial Services' revenues. |
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: Years Ended November 30, (In thousands) 2022 2021 2020 Changes in fair value included in Financial Services revenues: Loans held-for-sale $ (33,287) (14,449) 21,765 Mortgage loan commitments 43,695 (8,302) 12,774 Forward contracts (48,790) 11,513 (9,805) Forward options (142) — — Changes in fair value included in Lennar Other unrealized gain (loss) from technology investments: Investments in equity securities $ (655,094) 510,802 — Changes in fair value included in other comprehensive income (loss), net of tax: Lennar Other investments available-for-sale $ 1,464 (536) (805) |
Schedule of Significant Unobservable Inputs Used to Determine Fair Value of Communities | 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: Years Ended November 30, 2022 2021 Unobservable inputs Range Average selling price (1) $233,000 — $753,000 $635,000 Absorption rate per quarter (homes) 2 — 12 11 Discount rate 20% 20% November 30, 2022 Discount rates at purchase 6% — 84% Coupon rates 2.0% — 5.3% Distribution dates October 2027 — December 2028 Stated maturity dates October 2050 — December 2051 November 30, 2022 Unobservable inputs Mortgage prepayment rate 8% Discount rate 13% Delinquency rate 7% |
Communities Reviewed for Indicators of Impairment and Communities with Valuation Adjustments Needed | aluation adjustments for finished homes and construction in progress were included in Homebuilding costs and expenses in the Company's consolidated statements of operations and comprehensive income (loss) for the years ended November 30, 2022 and 2021. The table below summarizes communities reviewed for indicators of impairment and communities with valuation adjustments recorded: At November 30, Communities with valuation adjustments # of communities with potential indicators of impairment # of communities Fair Value Valuation Adjustments 2022 15 9 $ 105,042 $ 33,563 2021 4 1 5,267 11,849 Years Ended November 30, 2022 2021 2020 (In thousands) Fair Carrying Value Fair Value Total Carrying Value Fair Value Total Losses, Net (1) Carrying Value Fair Value Total Losses, Net (1) Non-financial assets Homebuilding: Finished homes and construction in progress (2) Level 3 $ 347,300 295,663 (51,637) 32,364 16,342 (16,022) 176,637 148,684 (27,953) Land and land under development (2) Level 3 183,737 126,135 (57,602) 35,775 26,841 (8,934) 182,137 92,355 (89,782) Other assets (2) Level 3 — — — 12,764 12,024 (740) — — — Investments in unconsolidated entities (2) Level 3 1,454 — (1,454) — — — — — — (1) Represents losses due to valuation adjustments and deposit and acore write-offs recorded during the year. (2) Valuation adjustments for finished homes and construction in progress, and land and land under development were included in Homebuilding costs and expenses. During the year ended November 30, 2022, total losses, net, for land and land underdevelopment |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Unconsolidated VIEs | he Company’s recorded investments in VIEs that are unconsolidated and its estimated maximum exposure to loss were as follows: November 30, 2022 2021 (In thousands) Investments in Unconsolidated VIEs Lennar’s Maximum Exposure to Loss Investments in Lennar’s Maximum Exposure to Loss Homebuilding (1) $ 586,935 718,719 107,323 301,619 Multifamily (2) 607,484 633,934 579,388 611,937 Financial Services (3) 143,251 143,251 157,808 157,808 Lennar Other (4) 55,952 55,952 12,680 12,680 $ 1,393,622 1,551,856 857,199 1,084,044 (1) As of November 30, 2022 and 2021, the maximum exposure to loss of Homebuilding's investments in unconsolidated VIEs was limited to its investments in unconsolidated VIEs, except with regard to the Company's remaining $77.3 million and $106.1 million, respectively, commitment to fund capital in Upward America, and $52.7 million and $87.9 million, respectively, of receivables relating to a short-term loan and management fee owed to the Company by Upward America. (2) As of November 30, 2022 and 2021, the maximum exposure to loss of Multifamily's investments in unconsolidated VIEs was primarily limited to its investments in the unconsolidated VIEs. The maximum exposure for LMV I and LMV II in addition to the investment also included to the remaining combined equity commitment of $19.3 million and $23.1 million as of November 30, 2022 and 2021, respectively, for future expenditures related to the construction and development of its projects. (3) As of both November 30, 2022 and 2021, the maximum exposure to loss of the Financial Services segment was limited to its investment in the unconsolidated VIEs and related to the Financial Services' CMBS investments held-to-maturity. (4) At November 30, 2022, the maximum recourse exposure to loss of the Lennar Other segment was limited to its investments in the unconsolidated VIEs. The Company’s exposure to losses on its option contracts with third parties and unconsolidated entities were as follows: November 30, (In thousands) 2022 2021 Non-refundable option deposits and pre-acquisition costs $ 1,990,946 1,228,057 Letters of credit in lieu of cash deposits under certain land and option contracts 163,942 175,937 |
Commitments And Contingent Li_2
Commitments And Contingent Liabilities (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Assets And Liabilities, Lessee | The following table includes additional information about the Company's leases: (Dollars in thousands) November 30, 2022 Right-of-use assets $ 149,966 Lease liabilities $ 158,832 Weighted-average remaining lease term (in years) 7.9 Weighted-average discount rate 3.0% |
Lessee, Operating Lease, Liability, Maturity | The Company has entered into agreements to lease certain office facilities and equipment under operating leases. Future minimum payments under the noncancellable leases in effect at November 30, 2022 were as follows: (In thousands) Lease Payments 2023 $ 34,167 2024 28,672 2025 24,049 2026 18,753 2027 and thereafter 73,036 Total future minimum lease payments (1) $ 178,677 Less: Interest (2) 19,845 Present value of lease liabilities (2) $ 158,832 (1) Future minimum lease payments exclude variable lease costs and short-term lease costs, which were $23.0 million and $2.7 million, respectively. (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 November 30, 2022, the Company recognized the lease liabilities on its consolidated balance sheets within accounts payable and other liabilities of the respective segments. |
Lease, Cost | The Company's rental expense was as follows: Years Ended November 30, (In thousands) 2022 2021 2020 Rental expense $ 105,414 84,991 82,090 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | ||||
Nov. 30, 2022 USD ($) vote communities $ / shares shares | Nov. 30, 2021 USD ($) communities $ / shares shares | Nov. 30, 2020 USD ($) $ / shares shares | Mar. 31, 2022 USD ($) shares | Oct. 31, 2021 USD ($) shares | |
Segment Reporting Information [Line Items] | |||||
Advertising costs | $ 102,100,000 | $ 74,200,000 | $ 72,600,000 | ||
Cash held in escrow | $ 1,000,000,000 | $ 940,400,000 | |||
Escrow deposit period | 2 days | 2 days | |||
Number of active communities | communities | 1,200 | 1,259 | |||
Land under Purchase Options, Deposit | $ 2,000,000,000 | ||||
Held-to-maturity securities, term | 3 years | ||||
Deferred tax assets after valuation allowance | $ 720,063,000 | $ 665,258,000 | |||
Net deferred tax liabilities | (4,245,000) | ||||
Deferred tax assets, valuation allowance | 2,903,000 | 2,693,000 | |||
Self-insurance reserve | 210,100,000 | 169,100,000 | |||
Authorized amount under stock repurchase program | $ 2,000,000,000 | $ 1,000,000,000 | |||
Originally authorized shares under the stock repurchase program (in shares) | shares | 30,000,000 | 25,000,000 | |||
Compensation expense | 37,500,000 | 29,400,000 | $ 27,300,000 | ||
Right-of-use assets | 149,966,000 | ||||
Operating lease liability | 158,832,000 | ||||
Net deferred tax assets | 242,408,000 | ||||
Variable Interest Entity, Not Primary Beneficiary Including Third Parties | |||||
Segment Reporting Information [Line Items] | |||||
Increase in consolidated inventory not owned | 1,200,000,000 | ||||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Available-for-sale securities | 35,482,000 | 41,654,000 | |||
Held-to-maturity securities | 143,251,000 | 157,808,000 | |||
Investments in equity securities | $ 391,026,000 | $ 1,006,599,000 | |||
Executive Chairman | |||||
Segment Reporting Information [Line Items] | |||||
Voting power | 36% | ||||
Preferred Stock | |||||
Segment Reporting Information [Line Items] | |||||
Preferred stock, shares authorized (in shares) | shares | 500,000 | ||||
Preferred stock, par value (in usd per share) | $ / shares | $ 10 | ||||
Participating Preferred Stock | |||||
Segment Reporting Information [Line Items] | |||||
Preferred stock, shares authorized (in shares) | shares | 100,000,000 | ||||
Preferred stock, par value (in usd per share) | $ / shares | $ 0.10 | ||||
Preferred stock, shares issued (in shares) | shares | 0 | ||||
Class A Common Stock | |||||
Segment Reporting Information [Line Items] | |||||
Cash dividends (in USD per share) | $ / shares | $ 1.50 | $ 1 | $ 0.625 | ||
Votes per share | vote | 1 | ||||
Stock repurchased (in shares) | shares | 9,600,000 | ||||
Class A Common Stock | Common Stock | |||||
Segment Reporting Information [Line Items] | |||||
Treasury stock retired (in shares) | shares | 46,700,000 | ||||
Class B Common Stock | |||||
Segment Reporting Information [Line Items] | |||||
Cash dividends (in USD per share) | $ / shares | $ 1.50 | $ 1 | $ 0.625 | ||
Votes per share | vote | 10 | ||||
Stock repurchased (in shares) | shares | 1,300,000 | ||||
Class B Common Stock | Common Stock | |||||
Segment Reporting Information [Line Items] | |||||
Treasury stock retired (in shares) | shares | 2,800,000 | ||||
Financial Services | |||||
Segment Reporting Information [Line Items] | |||||
Net deferred tax liabilities | $ (1,431,000) | ||||
Net deferred tax assets | $ 15,376,000 | ||||
Financial Services | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Available-for-sale securities | 0 | 0 | |||
Held-to-maturity securities | 143,251,000 | 157,808,000 | |||
Investments in equity securities | 0 | ||||
Lennar Other | |||||
Segment Reporting Information [Line Items] | |||||
Available-for-sale securities | 35,500,000 | 41,700,000 | |||
Net deferred tax liabilities | (151,259,000) | ||||
Net deferred tax assets | 46,214,000 | ||||
Lennar Other | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Available-for-sale securities | 35,482,000 | 41,654,000 | |||
Held-to-maturity securities | 0 | 0 | |||
Investments in equity securities | 391,026,000 | 1,006,599,000 | |||
Homebuilding | |||||
Segment Reporting Information [Line Items] | |||||
Sales incentive, amount per home | $ 17,300 | $ 9,000 | $ 19,800 | ||
Sales incentive, amount per home, percentage | 3.50% | 2.10% | 4.80% | ||
Inventory write-down | $ 47,900,000 | ||||
Interest incurred | 230,800,000 | $ 275,100,000 | $ 353,400,000 | ||
Interest capitalized | 211,700,000 | 254,900,000 | $ 331,000,000 | ||
Net deferred tax assets | 154,143,000 | 84,198,000 | |||
Homebuilding | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Available-for-sale securities | 0 | 0 | |||
Held-to-maturity securities | 0 | 0 | |||
Investments in equity securities | $ 0 | ||||
Stock Option Awards | |||||
Segment Reporting Information [Line Items] | |||||
Expiration period | 10 years | ||||
Nonvested shares | |||||
Segment Reporting Information [Line Items] | |||||
Unrecognized compensation expense related to unvested share-based awards granted | $ 177,000,000 | ||||
Weighted average remaining contractual life of unrecognized compensation expense related to unvested share-based awards | 1 year 10 months 24 days | ||||
Nonvested shares vested (in shares) | shares | 1,581,744 | 1,800,000 | 1,400,000 | ||
Discount rate | Minimum | |||||
Segment Reporting Information [Line Items] | |||||
Communities, unobservable inputs | 0.10 | ||||
Discount rate | Maximum | |||||
Segment Reporting Information [Line Items] | |||||
Communities, unobservable inputs | 0.20 | ||||
Operating properties | |||||
Segment Reporting Information [Line Items] | |||||
Estimated useful life | 30 years | ||||
Furniture, fixtures and equipment | Minimum | |||||
Segment Reporting Information [Line Items] | |||||
Estimated useful life | 2 years | ||||
Furniture, fixtures and equipment | Maximum | |||||
Segment Reporting Information [Line Items] | |||||
Estimated useful life | 10 years | ||||
Leasehold improvements | |||||
Segment Reporting Information [Line Items] | |||||
Estimated useful life | 5 years |
Summary Of Significant Accoun_5
Summary Of Significant Accounting Policies (Receivables, Net) (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 |
Segment Reporting Information [Line Items] | ||
Receivables, gross | $ 676,159 | $ 492,809 |
Receivables, net | 673,980 | 490,278 |
Upward America | ||
Segment Reporting Information [Line Items] | ||
Due from related parties, current | 50,000 | 85,000 |
Homebuilding | ||
Segment Reporting Information [Line Items] | ||
Accounts receivable | 490,420 | 245,004 |
Mortgages and notes receivable | 185,739 | 247,805 |
Allowance for credit losses | $ (2,179) | $ (2,531) |
Summary Of Significant Accoun_6
Summary Of Significant Accounting Policies (Communities with Indicators of Impairment and Communities with Valuation Adjustments Recorded) (Details) $ in Thousands | 12 Months Ended | |
Nov. 30, 2022 USD ($) community | Nov. 30, 2021 USD ($) community | |
Accounting Policies [Abstract] | ||
# of communities with potential indicators of impairment | community | 15 | 4 |
Communities with valuation adjustments, # of communities | community | 9 | 1 |
Communities with valuation adjustments, Fair Value | $ | $ 105,042 | $ 5,267 |
Communities with valuation adjustments, Valuation Adjustments | $ | $ 33,563 | $ 11,849 |
Summary Of Significant Accoun_7
Summary Of Significant Accounting Policies (Unobservable inputs) (Details) | Nov. 30, 2022 home USD ($) | Nov. 30, 2021 USD ($) home |
Average selling price (1) | Level 3 | Discounted Cash Flow Model | Fair Value, Measurements, Nonrecurring | Minimum | ||
Segment Reporting Information [Line Items] | ||
Communities, unobservable inputs | $ | 233,000 | 635,000 |
Average selling price (1) | Level 3 | Discounted Cash Flow Model | Fair Value, Measurements, Nonrecurring | Maximum | ||
Segment Reporting Information [Line Items] | ||
Communities, unobservable inputs | $ | 753,000 | |
Absorption rate per quarter (homes) | Level 3 | Discounted Cash Flow Model | Fair Value, Measurements, Nonrecurring | Minimum | ||
Segment Reporting Information [Line Items] | ||
Communities, unobservable inputs | home | 2 | 11 |
Absorption rate per quarter (homes) | Level 3 | Discounted Cash Flow Model | Fair Value, Measurements, Nonrecurring | Maximum | ||
Segment Reporting Information [Line Items] | ||
Communities, unobservable inputs | home | 12 | |
Discount rate | Minimum | ||
Segment Reporting Information [Line Items] | ||
Communities, unobservable inputs | 0.10 | |
Discount rate | Maximum | ||
Segment Reporting Information [Line Items] | ||
Communities, unobservable inputs | 0.20 | |
Discount rate | Level 3 | Discounted Cash Flow Model | Fair Value, Measurements, Nonrecurring | Minimum | ||
Segment Reporting Information [Line Items] | ||
Communities, unobservable inputs | 0.20 | 0.20 |
Summary Of Significant Accoun_8
Summary Of Significant Accounting Policies (Operating Properties and Equipment) (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Operating properties and equipment, gross | $ 581,917 | $ 538,761 |
Accumulated depreciation and amortization | (226,822) | (198,855) |
Operating properties and equipment, net | 355,095 | 339,906 |
Operating properties | ||
Property, Plant and Equipment [Line Items] | ||
Operating properties and equipment, gross | 305,743 | 309,367 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Operating properties and equipment, gross | 68,951 | 56,620 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Operating properties and equipment, gross | $ 207,223 | $ 172,774 |
Summary Of Significant Accoun_9
Summary Of Significant Accounting Policies (Schedule Of Interest Expense) (Details) - Homebuilding - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Segment Reporting Information [Line Items] | |||
Other interest expense | $ 19,128 | $ 20,142 | $ 22,401 |
Total interest expense | 312,731 | 365,373 | 374,104 |
Inventory, Homes | |||
Segment Reporting Information [Line Items] | |||
Interest expense | 293,105 | 342,756 | 349,109 |
Inventory, Land | |||
Segment Reporting Information [Line Items] | |||
Interest expense | $ 498 | $ 2,475 | $ 2,594 |
Summary Of Significant Accou_10
Summary Of Significant Accounting Policies (Schedule Of Warranty Reserve) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Warranty reserve, beginning of year | $ 377,021 | $ 341,765 |
Warranties issued | 274,766 | 217,641 |
Adjustments to pre-existing warranties from changes in estimates | 26,222 | 29,436 |
Payments | (259,992) | (211,821) |
Warranty reserve, end of year | $ 418,017 | $ 377,021 |
Summary Of Significant Accou_11
Summary Of Significant Accounting Policies (Repurchase of Company's Common Stock) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Class A Common Stock | ||
Class of Stock [Line Items] | ||
Shares repurchased (in shares) | 9,628,203 | 13,910,000 |
Total purchase price | $ 868,788 | $ 1,357,081 |
Average price per share (in usd per share) | $ 90.23 | $ 97.56 |
Class B Common Stock | ||
Class of Stock [Line Items] | ||
Shares repurchased (in shares) | 1,339,797 | 100,000 |
Total purchase price | $ 98,613 | $ 8,197 |
Average price per share (in usd per share) | $ 73.60 | $ 81.97 |
Summary Of Significant Accou_12
Summary Of Significant Accounting Policies (Compensation Expense Related to the Company's Share-based Awards) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Accounting Policies [Abstract] | |||
Total compensation expense for nonvested share-based awards | $ 184,086 | $ 135,090 | $ 107,131 |
Summary Of Significant Accou_13
Summary Of Significant Accounting Policies (Schedule Of Nonvested Shares Activity) (Details) - Nonvested shares - $ / shares | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Shares | |||
Beginning balance (in shares) | 3,163,790 | ||
Grants (in shares) | 1,697,986 | ||
Vested (in shares) | (1,581,744) | (1,800,000) | (1,400,000) |
Forfeited (in shares) | (127,886) | ||
Ending balance (in shares) | 3,152,146 | 3,163,790 | |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in USD per share) | $ 66.07 | ||
Grants (in USD per share) | 88.92 | $ 80.95 | $ 60.10 |
Vested (in USD per share) | 61.39 | ||
Forfeited (in USD per share) | 74.38 | ||
Ending balance (in USD per share) | $ 80.39 | $ 66.07 |
Summary Of Significant Accou_14
Summary Of Significant Accounting Policies (Loan Origination Liabilities) (Details) - Financial Services - Loan Origination Liabilities - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Loan Origination Liabilities [Roll Forward] | ||
Loan origination liabilities, beginning of year | $ 11,670 | $ 7,569 |
Provision for losses | 966 | 4,639 |
Payments/settlements | (849) | (538) |
Loan origination liabilities, end of year | $ 11,787 | $ 11,670 |
Operating And Reporting Segme_3
Operating And Reporting Segments (Schedule of Segment Assets and Liabilities) (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | ||
Segment Reporting Information [Line Items] | |||||
Assets | [1] | $ 37,984,295 | $ 33,207,778 | ||
Total liabilities | [2] | 13,743,928 | 12,211,496 | ||
Equity Securities without Readily Determinable Fair Value, Amount | 178,000 | 100,100 | |||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Cash and cash equivalents | 4,778,720 | 2,921,744 | |||
Restricted cash | 37,050 | 33,939 | |||
Receivables, net | 1,614,277 | 1,296,848 | |||
Inventories | 21,862,453 | 19,169,397 | |||
Loans held-for-sale | 1,776,311 | 1,636,351 | |||
Investments in equity securities | 391,026 | 1,006,599 | |||
Loans held-for-investment, net | 45,636 | 44,582 | |||
Investments held-to-maturity | 143,251 | 157,808 | |||
Investments available-for-sale | 35,482 | 41,654 | |||
Investments in unconsolidated entities | 2,137,813 | 1,972,383 | |||
Goodwill | 3,632,058 | 3,632,058 | |||
Other assets | 1,530,218 | 1,294,415 | |||
Assets | 37,984,295 | 33,207,778 | |||
Notes and other debts payable, net | 6,199,136 | 6,378,364 | |||
Other liabilities | 7,544,792 | 5,833,132 | |||
Total liabilities | 13,743,928 | 12,211,496 | |||
Homebuilding | |||||
Segment Reporting Information [Line Items] | |||||
Cash and cash equivalents | [1] | 4,616,124 | 2,735,213 | ||
Restricted cash | [1] | 23,046 | 21,927 | ||
Receivables, net | [1] | 673,980 | 490,278 | ||
Inventories | [1] | 21,432,011 | 18,715,304 | ||
Investments in unconsolidated entities | [1] | 1,173,164 | 972,084 | ||
Goodwill | 3,442,359 | [1] | 3,442,359 | ||
Other assets | [1] | 1,323,478 | 1,090,654 | ||
Assets | [1] | 32,684,162 | 27,467,819 | ||
Notes and other debts payable, net | [2] | 4,047,294 | 4,652,338 | ||
Total liabilities | [2] | 10,978,646 | 9,870,242 | ||
Homebuilding | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Cash and cash equivalents | 4,616,124 | 2,735,213 | $ 2,703,986 | ||
Restricted cash | 23,046 | 21,927 | 15,211 | ||
Receivables, net | 673,980 | 490,278 | |||
Inventories | 21,432,011 | 18,715,304 | |||
Loans held-for-sale | 0 | 0 | |||
Investments in equity securities | 0 | ||||
Loans held-for-investment, net | 0 | 0 | |||
Investments held-to-maturity | 0 | 0 | |||
Investments available-for-sale | 0 | 0 | |||
Investments in unconsolidated entities | 1,173,164 | 972,084 | |||
Goodwill | 3,442,359 | 3,442,359 | |||
Other assets | 1,323,478 | 1,090,654 | |||
Assets | 32,684,162 | 27,467,819 | |||
Notes and other debts payable, net | 4,047,294 | 4,652,338 | |||
Other liabilities | 6,931,352 | 5,217,904 | |||
Total liabilities | 10,978,646 | 9,870,242 | |||
Financial Services | |||||
Segment Reporting Information [Line Items] | |||||
Assets | [1] | 3,254,257 | 2,964,367 | ||
Total liabilities | [2] | 2,353,904 | 1,906,343 | ||
Financial Services | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Cash and cash equivalents | 139,378 | 167,021 | 116,171 | ||
Restricted cash | 14,004 | 12,012 | 54,481 | ||
Receivables, net | 826,163 | 708,165 | |||
Inventories | 0 | 0 | |||
Loans held-for-sale | 1,776,311 | 1,636,351 | |||
Investments in equity securities | 0 | ||||
Loans held-for-investment, net | 45,636 | 44,582 | |||
Investments held-to-maturity | 143,251 | 157,808 | |||
Investments available-for-sale | 0 | 0 | |||
Investments in unconsolidated entities | 0 | 0 | |||
Goodwill | 189,699 | 189,699 | |||
Other assets | 119,815 | 48,729 | |||
Assets | 3,254,257 | 2,964,367 | |||
Notes and other debts payable, net | 2,135,093 | 1,726,026 | |||
Other liabilities | 218,811 | 180,317 | |||
Total liabilities | 2,353,904 | 1,906,343 | |||
Multifamily | |||||
Segment Reporting Information [Line Items] | |||||
Assets | [1] | 1,257,337 | 1,311,747 | ||
Total liabilities | [2] | 313,484 | 288,930 | ||
Multifamily | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Cash and cash equivalents | 17,827 | 16,850 | 38,963 | ||
Restricted cash | 0 | 0 | |||
Receivables, net | 114,134 | 98,405 | |||
Inventories | 430,442 | 454,093 | |||
Loans held-for-sale | 0 | 0 | |||
Investments in equity securities | 0 | ||||
Loans held-for-investment, net | 0 | 0 | |||
Investments held-to-maturity | 0 | 0 | |||
Investments available-for-sale | 0 | 0 | |||
Investments in unconsolidated entities | 648,126 | 654,029 | |||
Goodwill | 0 | 0 | |||
Other assets | 46,808 | 88,370 | |||
Assets | 1,257,337 | 1,311,747 | |||
Notes and other debts payable, net | 16,749 | 0 | |||
Other liabilities | 296,735 | 288,930 | |||
Total liabilities | 313,484 | 288,930 | |||
Lennar Other | |||||
Segment Reporting Information [Line Items] | |||||
Investments available-for-sale | 35,500 | 41,700 | |||
Assets | [1] | 788,539 | 1,463,845 | ||
Total liabilities | [2] | 97,894 | 145,981 | ||
Lennar Other | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Cash and cash equivalents | 5,391 | 2,660 | $ 3,918 | ||
Restricted cash | 0 | 0 | |||
Receivables, net | 0 | 0 | |||
Inventories | 0 | 0 | |||
Loans held-for-sale | 0 | 0 | |||
Investments in equity securities | 391,026 | 1,006,599 | |||
Loans held-for-investment, net | 0 | 0 | |||
Investments held-to-maturity | 0 | 0 | |||
Investments available-for-sale | 35,482 | 41,654 | |||
Investments in unconsolidated entities | 316,523 | 346,270 | |||
Goodwill | 0 | 0 | |||
Other assets | 40,117 | 66,662 | |||
Assets | 788,539 | 1,463,845 | |||
Notes and other debts payable, net | 0 | 0 | |||
Other liabilities | 97,894 | 145,981 | |||
Total liabilities | $ 97,894 | $ 145,981 | |||
[1] Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its consolidated balance sheets the assets of consolidated variable interest entities ("VIEs") that are owned by the consolidated VIEs and liabilities of consolidated VIEs as to which there is no recourse against the Company. As of November 30, 2022, total assets include $1.4 billion related to consolidated VIEs of which $56.9 million is included in Homebuilding cash and cash equivalents, $0.3 million in Homebuilding receivables, net, $29.4 million in Homebuilding finished homes and construction in progress, $736.5 million in Homebuilding land and land under development, $533.8 million in Homebuilding consolidated inventory not owned, $1.0 million in Homebuilding investments in unconsolidated entities, $23.0 million in Homebuilding other assets, $33.2 million in Multifamily assets and $9.0 million in Lennar Other assets . As of November 30, 2021, total assets include $1.1 billion related to consolidated VIEs of which $60.9 million is included in Homebuilding cash and cash equivalents, $4.4 million in Homebuilding receivables, net, $14.3 million in Homebuilding finished homes and construction in progress, $697.1 million in Homebuilding land and land under development, $239.2 million in Homebuilding consolidated inventory not owned, $1.1 million in Homebuilding investments in unconsolidated entities, $17.4 million in Homebuilding other assets and $80.6 million in Multifamily assets. As of November 30, 2022, total liabilities include $620.4 million related to consolidated VIEs as to which there was no recourse against the Company, of which $66.9 million is included in Homebuilding accounts payable, $510.9 million in Homebuilding liabilities related to consolidated inventory not owned, $29.4 million in Homebuilding senior notes and other debts payable, $7.2 million in Homebuilding other liabilities, $3.8 million in Multifamily liabilities and $2.2 million in Lennar Other liabilities. |
Operating and Reporting Segme_4
Operating and Reporting Segments (Financial Information Relating to Company's Segments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Segment Reporting Information [Line Items] | |||
Earnings (loss) before income taxes | $ 6,014,566 | $ 5,819,058 | $ 3,123,788 |
Lennar Other | |||
Segment Reporting Information [Line Items] | |||
Unrealized gain (loss) on investments | (655,094) | 510,802 | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 33,671,010 | 27,130,676 | 22,488,854 |
Operating earnings (loss) | 6,495,463 | 6,277,264 | 3,482,206 |
Operating Segments | Homebuilding | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 31,951,335 | 25,545,242 | 20,981,136 |
Operating earnings (loss) | 6,777,317 | 5,031,762 | 2,988,907 |
Earnings (loss) before income taxes | 6,777,317 | 5,031,762 | 2,988,907 |
Operating Segments | Financial Services | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 809,680 | 898,745 | 890,311 |
Operating earnings (loss) | 383,302 | 491,014 | 480,952 |
Earnings (loss) before income taxes | 383,302 | 491,014 | 480,952 |
Operating Segments | Financial Services | Court Judgment | |||
Segment Reporting Information [Line Items] | |||
Provision for losses | 35,500 | ||
Operating Segments | Multifamily | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 865,603 | 665,232 | 576,328 |
Operating earnings (loss) | 69,493 | 21,453 | 22,681 |
Earnings (loss) before income taxes | 69,493 | 21,453 | 22,681 |
Operating Segments | Lennar Other | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 44,392 | 21,457 | 41,079 |
Operating earnings (loss) | (734,649) | 733,035 | (10,334) |
Earnings (loss) before income taxes | (734,649) | 733,035 | (10,334) |
Unrealized gain (loss) on investments | (655,094) | 510,802 | 0 |
Write-down of assets in unconsolidated entities | 25,000 | ||
Corporate and unallocated | |||
Segment Reporting Information [Line Items] | |||
Corporate general and administrative expenses | (414,498) | (398,381) | (333,446) |
Contribution Expense | (66,399) | (59,825) | (24,972) |
Earnings (loss) before income taxes | (480,897) | (458,206) | (358,418) |
Operating Segments And Corporate Non Segment | |||
Segment Reporting Information [Line Items] | |||
Earnings (loss) before income taxes | $ 6,014,566 | $ 5,819,058 | $ 3,123,788 |
Operating And Reporting Segme_5
Operating And Reporting Segments (Homebuilding Assets) (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 | |
Segment Reporting Information [Line Items] | |||
Assets | [1] | $ 37,984,295 | $ 33,207,778 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | 37,984,295 | 33,207,778 | |
Corporate and unallocated | |||
Segment Reporting Information [Line Items] | |||
Assets | 4,487,735 | 2,414,819 | |
East | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | 6,877,581 | 5,854,057 | |
Central | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | 4,010,610 | 3,782,847 | |
Texas | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | 3,742,663 | 2,801,192 | |
West | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | 12,182,709 | 11,171,741 | |
Other | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | 1,382,864 | 1,443,163 | |
Homebuilding | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 32,684,162 | 27,467,819 |
Homebuilding | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | 32,684,162 | 27,467,819 | |
Homebuilding | Operating Segments And Corporate Non Segment | |||
Segment Reporting Information [Line Items] | |||
Assets | $ 32,684,162 | $ 27,467,819 | |
[1] Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its consolidated balance sheets the assets of consolidated variable interest entities ("VIEs") that are owned by the consolidated VIEs and liabilities of consolidated VIEs as to which there is no recourse against the Company. As of November 30, 2022, total assets include $1.4 billion related to consolidated VIEs of which $56.9 million is included in Homebuilding cash and cash equivalents, $0.3 million in Homebuilding receivables, net, $29.4 million in Homebuilding finished homes and construction in progress, $736.5 million in Homebuilding land and land under development, $533.8 million in Homebuilding consolidated inventory not owned, $1.0 million in Homebuilding investments in unconsolidated entities, $23.0 million in Homebuilding other assets, $33.2 million in Multifamily assets and $9.0 million in Lennar Other assets . As of November 30, 2021, total assets include $1.1 billion related to consolidated VIEs of which $60.9 million is included in Homebuilding cash and cash equivalents, $4.4 million in Homebuilding receivables, net, $14.3 million in Homebuilding finished homes and construction in progress, $697.1 million in Homebuilding land and land under development, $239.2 million in Homebuilding consolidated inventory not owned, $1.1 million in Homebuilding investments in unconsolidated entities, $17.4 million in Homebuilding other assets and $80.6 million in Multifamily assets. |
Operating And Reporting Segme_6
Operating And Reporting Segments (Homebuilding Financial Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 87,075 | $ 85,954 | $ 94,553 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 33,671,010 | 27,130,676 | 22,488,854 |
Operating earnings (loss) | 6,495,463 | 6,277,264 | 3,482,206 |
Homebuilding | |||
Segment Reporting Information [Line Items] | |||
Interest expense | 312,731 | 365,373 | 374,104 |
Homebuilding | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 31,951,335 | 25,545,242 | 20,981,136 |
Operating earnings (loss) | 6,777,317 | 5,031,762 | 2,988,907 |
Interest expense | 312,731 | 365,373 | 374,104 |
Depreciation and amortization | 104,290 | 101,399 | 95,094 |
Net additions to operating properties and equipment | 11,101 | 41,774 | 156,134 |
East | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 9,266,013 | 6,870,944 | 5,715,028 |
Operating earnings (loss) | 2,240,256 | 1,455,432 | 933,297 |
Interest expense | 78,345 | 90,314 | 93,245 |
Depreciation and amortization | 24,888 | 24,531 | 21,504 |
Net additions to operating properties and equipment | 2,651 | 219 | 955 |
Central | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 5,846,023 | 4,826,535 | 4,093,693 |
Operating earnings (loss) | 889,231 | 720,419 | 482,929 |
Interest expense | 54,547 | 58,899 | 58,777 |
Depreciation and amortization | 15,219 | 16,118 | 13,659 |
Net additions to operating properties and equipment | 363 | 239 | (11,370) |
Texas | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 4,227,771 | 3,241,321 | 2,709,681 |
Operating earnings (loss) | 929,237 | 730,465 | 421,594 |
Interest expense | 29,442 | 28,764 | 29,901 |
Depreciation and amortization | 9,354 | 9,821 | 9,366 |
Net additions to operating properties and equipment | 136 | (9) | 712 |
West | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 12,571,386 | 10,563,756 | 8,437,167 |
Operating earnings (loss) | 2,773,597 | 2,192,446 | 1,241,494 |
Interest expense | 140,017 | 176,633 | 178,498 |
Depreciation and amortization | 54,055 | 49,691 | 50,316 |
Net additions to operating properties and equipment | 1,414 | 26,375 | 165,869 |
Other | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 40,142 | 42,686 | 25,567 |
Operating earnings (loss) | (55,004) | (67,000) | (90,407) |
Interest expense | 10,380 | 10,763 | 13,683 |
Depreciation and amortization | 774 | 1,238 | 249 |
Net additions to operating properties and equipment | $ 6,537 | $ 14,950 | $ (32) |
Operating And Reporting Segme_7
Operating And Reporting Segments (Financial Services Warehouse Facilities) (Details) - Warehouse Repurchase Facility - Financial Services - USD ($) | 12 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Short-term Debt [Line Items] | ||
Maximum Aggregate Commitment | $ 2,850,000,000 | |
Warehouse repurchase facility term | 364 days | |
Residential Warehouse Repurchase Facility Due in March 2021 | ||
Short-term Debt [Line Items] | ||
Maximum Aggregate Commitment | $ 800,000,000 | |
Residential Warehouse Repurchase Facility Due in June 2021 | ||
Short-term Debt [Line Items] | ||
Maximum Aggregate Commitment | 500,000,000 | |
Residential Warehouse Repurchase Facility Due in July 2021 | ||
Short-term Debt [Line Items] | ||
Maximum Aggregate Commitment | 1,000,000,000 | |
Residential Warehouse Repurchase Facility | ||
Short-term Debt [Line Items] | ||
Maximum Aggregate Commitment | 2,300,000,000 | |
Borrowings under facilities | 1,877,411,000 | $ 1,482,258,000 |
Commercial Warehouse Repurchase Facility Due in December 2020 | ||
Short-term Debt [Line Items] | ||
Maximum Aggregate Commitment | 100,000,000 | |
Commercial Warehouse Repurchase Facility Due in November 2021 | ||
Short-term Debt [Line Items] | ||
Maximum Aggregate Commitment | 400,000,000 | |
Commercial Warehouse Repurchase Facility Due in December 2021 | ||
Short-term Debt [Line Items] | ||
Maximum Aggregate Commitment | 50,000,000 | |
Commercial Warehouse Repurchase Facility | ||
Short-term Debt [Line Items] | ||
Maximum Aggregate Commitment | 550,000,000 | |
Borrowings under facilities | $ 124,399,000 | $ 96,294,000 |
Operating And Reporting Segme_8
Operating And Reporting Segments (Narrative) (Details) $ in Thousands | 12 Months Ended | |||
Nov. 30, 2022 USD ($) transaction | Nov. 30, 2021 USD ($) transaction | Nov. 30, 2020 USD ($) | ||
Doma Holdings, Inc | ||||
Segment Reporting Information [Line Items] | ||||
Ownership percentage | 25% | |||
Financial Services | ||||
Segment Reporting Information [Line Items] | ||||
Origination of loans | $ 740,345 | $ 770,107 | ||
Loans sold | $ 715,933 | $ 931,023 | ||
Number of securitizations | transaction | 6 | 6 | ||
Financial Services | Loan Origination Liabilities | ||||
Segment Reporting Information [Line Items] | ||||
Loss Contingency Accrual | $ 11,787 | $ 11,670 | $ 7,569 | |
Financial Services | Commercial Mortgage-Backed Securities | Minimum | ||||
Segment Reporting Information [Line Items] | ||||
Discount rate | 6% | |||
Coupon rate | 2% | |||
Financial Services | Commercial Mortgage-Backed Securities | Maximum | ||||
Segment Reporting Information [Line Items] | ||||
Discount rate | 84% | |||
Coupon rate | 5.30% | |||
Financial Services | Warehouse Repurchase Facility | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of loan collateralized | 80% | |||
Homebuilding | ||||
Segment Reporting Information [Line Items] | ||||
Senior notes and other debts payable, net | [1] | $ 4,047,294 | 4,652,338 | |
Interest rate | 8% | |||
Investments in unconsolidated entities | [2] | $ 1,173,164 | $ 972,084 | |
[1] As of November 30, 2022, total liabilities include $620.4 million related to consolidated VIEs as to which there was no recourse against the Company, of which $66.9 million is included in Homebuilding accounts payable, $510.9 million in Homebuilding liabilities related to consolidated inventory not owned, $29.4 million in Homebuilding senior notes and other debts payable, $7.2 million in Homebuilding other liabilities, $3.8 million in Multifamily liabilities and $2.2 million in Lennar Other liabilities. Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its consolidated balance sheets the assets of consolidated variable interest entities ("VIEs") that are owned by the consolidated VIEs and liabilities of consolidated VIEs as to which there is no recourse against the Company. As of November 30, 2022, total assets include $1.4 billion related to consolidated VIEs of which $56.9 million is included in Homebuilding cash and cash equivalents, $0.3 million in Homebuilding receivables, net, $29.4 million in Homebuilding finished homes and construction in progress, $736.5 million in Homebuilding land and land under development, $533.8 million in Homebuilding consolidated inventory not owned, $1.0 million in Homebuilding investments in unconsolidated entities, $23.0 million in Homebuilding other assets, $33.2 million in Multifamily assets and $9.0 million in Lennar Other assets . As of November 30, 2021, total assets include $1.1 billion related to consolidated VIEs of which $60.9 million is included in Homebuilding cash and cash equivalents, $4.4 million in Homebuilding receivables, net, $14.3 million in Homebuilding finished homes and construction in progress, $697.1 million in Homebuilding land and land under development, $239.2 million in Homebuilding consolidated inventory not owned, $1.1 million in Homebuilding investments in unconsolidated entities, $17.4 million in Homebuilding other assets and $80.6 million in Multifamily assets. |
Operating and Reporting Segme_9
Operating and Reporting Segments (Loans Held-for-Sale) (Details) - Financial Services $ in Thousands | 12 Months Ended | |
Nov. 30, 2022 USD ($) transaction | Nov. 30, 2021 USD ($) transaction | |
Segment Reporting Information [Line Items] | ||
Origination of loans | $ 740,345 | $ 770,107 |
Loans sold | $ 715,933 | $ 931,023 |
Number of securitizations | transaction | 6 | 6 |
Operating and Reporting Segm_10
Operating and Reporting Segments (Commercial Mortgage-Backed Securities) (Details) - Financial Services - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 |
Carrying Amount | ||
Segment Reporting Information [Line Items] | ||
Carrying value | $ 143,251 | $ 157,808 |
Financing Agreement to Purchase Commercial Mortgage Backed Securities | Secured Debt | ||
Segment Reporting Information [Line Items] | ||
Notes and other debts payable, net | $ 133,283 | $ 147,474 |
Incurred interest rate | 3.40% | 3.40% |
Operating and Reporting Segm_11
Operating and Reporting Segments (Fair Value Inputs for Commercial Mortgage-Backed Securities) (Details) - Commercial Mortgage-Backed Securities - Financial Services | 12 Months Ended |
Nov. 30, 2022 | |
Minimum | |
Segment Reporting Information [Line Items] | |
Discount rate | 6% |
Coupon rate | 2% |
Maximum | |
Segment Reporting Information [Line Items] | |
Discount rate | 84% |
Coupon rate | 5.30% |
Operating And Reporting Segm_12
Operating And Reporting Segments (Financial Services Warehouse Facilities Outstanding) (Details) - Financial Services - Warehouse Repurchase Facility - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 |
Residential Warehouse Repurchase Facility | ||
Short-term Debt [Line Items] | ||
Borrowings under facilities | $ 1,877,411 | $ 1,482,258 |
Collateral under the residential facilities | 1,950,155 | 1,539,641 |
Commercial Warehouse Repurchase Facility | ||
Short-term Debt [Line Items] | ||
Borrowings under facilities | $ 124,399 | $ 96,294 |
Operating and Reporting Segm_13
Operating and Reporting Segments - Unrealized Gain (Loss) on Investments (Details) - Lennar Other - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Segment Reporting Information [Line Items] | ||
Lennar Other unrealized gain (loss) from technology investments | $ (655,094) | $ 510,802 |
Disposal Group, Held-for-sale, Not Discontinued Operations | Solar Business | ||
Segment Reporting Information [Line Items] | ||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | (61,225) | (8,883) |
Opendoor | ||
Segment Reporting Information [Line Items] | ||
Lennar Other unrealized gain (loss) from technology investments | (25,630) | (6,744) |
Hippo | ||
Segment Reporting Information [Line Items] | ||
Lennar Other unrealized gain (loss) from technology investments | (222,447) | 207,634 |
SmartRent | ||
Segment Reporting Information [Line Items] | ||
Lennar Other unrealized gain (loss) from technology investments | (265,276) | 239,312 |
Sunnova Energy International Inc. | ||
Segment Reporting Information [Line Items] | ||
Lennar Other unrealized gain (loss) from technology investments | (78,177) | 79,483 |
Blend Labs | ||
Segment Reporting Information [Line Items] | ||
Lennar Other unrealized gain (loss) from technology investments | $ (2,339) | $ 0 |
Investments In Unconsolidated_2
Investments In Unconsolidated Entities (Homebuilding Unconsolidated Entities) (Details) $ in Thousands | Nov. 30, 2022 USD ($) investment | Nov. 30, 2021 USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Underlying equity in unconsolidated entities' net assets | $ 1,504,315 | $ 1,301,719 | |
Homebuilding | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated entities | [1] | 1,173,164 | 972,084 |
Homebuilding | FivePoint Unconsolidated Entity | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated entities | $ 382,900 | $ 381,600 | |
Strategic joint ventures contributed | investment | 3 | ||
Ownership percentage | 40% | ||
[1] Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its consolidated balance sheets the assets of consolidated variable interest entities ("VIEs") that are owned by the consolidated VIEs and liabilities of consolidated VIEs as to which there is no recourse against the Company. As of November 30, 2022, total assets include $1.4 billion related to consolidated VIEs of which $56.9 million is included in Homebuilding cash and cash equivalents, $0.3 million in Homebuilding receivables, net, $29.4 million in Homebuilding finished homes and construction in progress, $736.5 million in Homebuilding land and land under development, $533.8 million in Homebuilding consolidated inventory not owned, $1.0 million in Homebuilding investments in unconsolidated entities, $23.0 million in Homebuilding other assets, $33.2 million in Multifamily assets and $9.0 million in Lennar Other assets . As of November 30, 2021, total assets include $1.1 billion related to consolidated VIEs of which $60.9 million is included in Homebuilding cash and cash equivalents, $4.4 million in Homebuilding receivables, net, $14.3 million in Homebuilding finished homes and construction in progress, $697.1 million in Homebuilding land and land under development, $239.2 million in Homebuilding consolidated inventory not owned, $1.1 million in Homebuilding investments in unconsolidated entities, $17.4 million in Homebuilding other assets and $80.6 million in Multifamily assets. |
Investments In Unconsolidated_3
Investments In Unconsolidated Entities (Homebuilding Unconsolidated Entities Activity) (Details) - Unconsolidated Entities - Homebuilding - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Land sales revenues | |||
Schedule of Equity Method Investments [Line Items] | |||
Total revenues | $ 94,513 | $ 57,944 | $ 99,935 |
Management fees and reimbursement of expenses, net of deferrals | |||
Schedule of Equity Method Investments [Line Items] | |||
Total revenues | $ 20,792 | $ 16,464 | $ 2,363 |
Investments In Unconsolidated_4
Investments In Unconsolidated Entities (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Feb. 28, 2022 USD ($) | Nov. 30, 2022 USD ($) property | Nov. 30, 2021 USD ($) | ||
Upward America Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment , Total Equity Commitments | $ 125,000 | |||
Number of Homes Delivered | property | 2,418 | |||
Investments in unconsolidated entities | $ 37,700 | $ 13,300 | ||
Homebuilding | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Debt | 1,400,000 | 1,200,000 | ||
Maximum recourse exposure | 9,100 | 5,300 | ||
Unconsolidated entities non-recourse debt with completion guarantees | 333,600 | 241,000 | ||
Investments in unconsolidated entities | [1] | 1,173,164 | 972,084 | |
Homebuilding | FivePoint Unconsolidated Entity | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments in unconsolidated entities | 382,900 | 381,600 | ||
Multifamily | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Unconsolidated entities non-recourse debt with completion guarantees | 1,000,000 | 855,200 | ||
Multifamily | Lennar Multifamily Fund | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment , Total Equity Commitments | 1,000,000 | |||
Investments in unconsolidated entities | $ 26,000 | |||
Fund Investment, Ownership Percentage | 4% | |||
Lennar Other | Rialto Funds and Investment Vehicles | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments in unconsolidated entities | $ 185,100 | 200,600 | ||
Lennar Other | Strategic Technology Investments | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments in unconsolidated entities | 131,500 | $ 145,600 | ||
Upward America Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment , Total Equity Commitments | $ 1,600,000 | |||
Equity Method Investment, Equity Commitments Raised During Period | $ 350,000 | |||
[1] Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its consolidated balance sheets the assets of consolidated variable interest entities ("VIEs") that are owned by the consolidated VIEs and liabilities of consolidated VIEs as to which there is no recourse against the Company. As of November 30, 2022, total assets include $1.4 billion related to consolidated VIEs of which $56.9 million is included in Homebuilding cash and cash equivalents, $0.3 million in Homebuilding receivables, net, $29.4 million in Homebuilding finished homes and construction in progress, $736.5 million in Homebuilding land and land under development, $533.8 million in Homebuilding consolidated inventory not owned, $1.0 million in Homebuilding investments in unconsolidated entities, $23.0 million in Homebuilding other assets, $33.2 million in Multifamily assets and $9.0 million in Lennar Other assets . As of November 30, 2021, total assets include $1.1 billion related to consolidated VIEs of which $60.9 million is included in Homebuilding cash and cash equivalents, $4.4 million in Homebuilding receivables, net, $14.3 million in Homebuilding finished homes and construction in progress, $697.1 million in Homebuilding land and land under development, $239.2 million in Homebuilding consolidated inventory not owned, $1.1 million in Homebuilding investments in unconsolidated entities, $17.4 million in Homebuilding other assets and $80.6 million in Multifamily assets. |
Investments In Unconsolidated_5
Investments In Unconsolidated Entities (Multifamily Services Provided to Unconsolidated Entities) (Details) - Unconsolidated Entities - Multifamily - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
General Contractor | |||
Schedule of Equity Method Investments [Line Items] | |||
Total revenues | $ 498,142 | $ 549,400 | $ 400,808 |
Costs | 478,620 | 533,398 | 383,649 |
Land sales revenues | |||
Schedule of Equity Method Investments [Line Items] | |||
Total revenues | 237,477 | 15,105 | 83,944 |
Management fees and reimbursement of expenses, net of deferrals | |||
Schedule of Equity Method Investments [Line Items] | |||
Total revenues | $ 63,823 | $ 56,573 | $ 56,253 |
Investments In Unconsolidated_6
Investments In Unconsolidated Entities (Multifamily Venture Funds) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||
Distributions to Lennar | $ 71,301 | $ 45,984 | $ 62,073 |
Multifamily | LMV I | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated entities | 217,099 | ||
Equity commitments | 2,204,016 | ||
Equity commitments called | 2,152,324 | ||
Lennar's equity commitments | 504,016 | ||
Lennar's equity commitments called | 499,919 | ||
Lennar's remaining commitments | 4,097 | ||
Distributions to Lennar | 25,576 | ||
Multifamily | LMV II | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated entities | 293,831 | ||
Equity commitments | 1,257,700 | ||
Equity commitments called | 1,206,664 | ||
Lennar's equity commitments | 381,000 | ||
Lennar's equity commitments called | 365,807 | ||
Lennar's remaining commitments | 15,193 | ||
Distributions to Lennar | $ 12,555 |
Investments In Unconsolidated_7
Investments In Unconsolidated Entities (Summarized Financial Information of Unconsolidated Entities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | ||||
Assets: | ||||||
Total assets | [1] | $ 37,984,295 | $ 33,207,778 | |||
LIABILITIES AND EQUITY | ||||||
Equity | 24,240,367 | [2] | 20,996,282 | [2] | $ 18,099,401 | |
Total liabilities and equity | [2] | 37,984,295 | 33,207,778 | |||
Statement of Operations Years Ended: | ||||||
Net earnings (including net earnings attributable to noncontrolling interests) | 4,648,501 | 4,456,549 | 2,467,553 | |||
Operating Segments | ||||||
Assets: | ||||||
Total assets | 37,984,295 | 33,207,778 | ||||
LIABILITIES AND EQUITY | ||||||
Investments in unconsolidated entities | 2,137,813 | 1,972,383 | ||||
Statement of Operations Years Ended: | ||||||
Total revenues | 33,671,010 | 27,130,676 | 22,488,854 | |||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||||
Assets: | ||||||
Cash and cash equivalents | 833,095 | 917,680 | ||||
Loans receivable | 25,045 | 65,971 | ||||
Real estate owned | 213,103 | 279,200 | ||||
Investment securities | 2,543,715 | 2,461,788 | ||||
Investments in partnerships | 165,599 | 346,042 | ||||
Inventories | 5,392,285 | 4,666,454 | ||||
Operating properties and equipment | 7,146,981 | 6,451,302 | ||||
Other assets | 2,125,129 | 1,376,201 | ||||
Total assets | 18,444,952 | 16,564,638 | ||||
LIABILITIES AND EQUITY | ||||||
Accounts payable and other liabilities | 1,410,518 | 1,324,885 | ||||
Debt | 6,035,393 | 5,023,715 | ||||
Equity | 10,999,041 | 10,216,038 | ||||
Total liabilities and equity | 18,444,952 | 16,564,638 | ||||
Statement of Operations Years Ended: | ||||||
Total revenues | 1,747,336 | 1,383,266 | 1,362,686 | |||
Costs and expenses | 1,695,272 | 1,448,775 | 1,221,873 | |||
Other income | 197,056 | 187,625 | (244,680) | |||
Net earnings (including net earnings attributable to noncontrolling interests) | 249,120 | 122,116 | (103,867) | |||
Equity in earnings (loss) from unconsolidated entities | (36,302) | 48,993 | (13,939) | |||
Homebuilding | ||||||
Assets: | ||||||
Total assets | [1] | 32,684,162 | 27,467,819 | |||
LIABILITIES AND EQUITY | ||||||
Investments in unconsolidated entities | [1] | 1,173,164 | 972,084 | |||
Debt issuance costs | 18,400 | 11,900 | ||||
Homebuilding | Operating Segments | ||||||
Assets: | ||||||
Total assets | 32,684,162 | 27,467,819 | ||||
LIABILITIES AND EQUITY | ||||||
Investments in unconsolidated entities | 1,173,164 | 972,084 | ||||
Statement of Operations Years Ended: | ||||||
Total revenues | 31,951,335 | 25,545,242 | 20,981,136 | |||
Homebuilding | Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||||
Assets: | ||||||
Cash and cash equivalents | 366,276 | 460,901 | ||||
Loans receivable | 0 | 0 | ||||
Real estate owned | 0 | 0 | ||||
Investment securities | 0 | 0 | ||||
Investments in partnerships | 0 | 0 | ||||
Inventories | 5,391,285 | 4,666,454 | ||||
Operating properties and equipment | 56,687 | 44,802 | ||||
Other assets | 1,378,156 | 1,044,771 | ||||
Total assets | 7,192,404 | 6,216,928 | ||||
LIABILITIES AND EQUITY | ||||||
Accounts payable and other liabilities | 994,603 | 904,078 | ||||
Debt | 1,383,302 | 1,216,721 | ||||
Equity | 4,814,499 | 4,096,129 | ||||
Total liabilities and equity | 7,192,404 | 6,216,928 | ||||
Financial Services | ||||||
Assets: | ||||||
Total assets | [1] | 3,254,257 | 2,964,367 | |||
Financial Services | Operating Segments | ||||||
Assets: | ||||||
Total assets | 3,254,257 | 2,964,367 | ||||
LIABILITIES AND EQUITY | ||||||
Investments in unconsolidated entities | 0 | 0 | ||||
Statement of Operations Years Ended: | ||||||
Total revenues | 809,680 | 898,745 | 890,311 | |||
Multifamily | ||||||
Assets: | ||||||
Total assets | [1] | 1,257,337 | 1,311,747 | |||
LIABILITIES AND EQUITY | ||||||
Debt issuance costs | 26,400 | 23,400 | ||||
Multifamily | Operating Segments | ||||||
Assets: | ||||||
Total assets | 1,257,337 | 1,311,747 | ||||
LIABILITIES AND EQUITY | ||||||
Investments in unconsolidated entities | 648,126 | 654,029 | ||||
Statement of Operations Years Ended: | ||||||
Total revenues | 865,603 | 665,232 | 576,328 | |||
Equity in earnings (loss) from unconsolidated entities | 52,821 | 9,031 | 21,934 | |||
Multifamily | Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||||
Assets: | ||||||
Cash and cash equivalents | 53,121 | 25,972 | ||||
Loans receivable | 0 | 0 | ||||
Real estate owned | 0 | 0 | ||||
Investment securities | 0 | 0 | ||||
Investments in partnerships | 0 | 0 | ||||
Inventories | 1,000 | 0 | ||||
Operating properties and equipment | 7,090,294 | 6,406,500 | ||||
Other assets | 523,152 | 111,750 | ||||
Total assets | 7,667,567 | 6,544,222 | ||||
LIABILITIES AND EQUITY | ||||||
Accounts payable and other liabilities | 245,266 | 240,928 | ||||
Debt | 4,318,774 | 3,407,362 | ||||
Equity | 3,103,527 | 2,895,932 | ||||
Total liabilities and equity | 7,667,567 | 6,544,222 | ||||
Lennar Other | ||||||
Assets: | ||||||
Total assets | [1] | 788,539 | 1,463,845 | |||
Lennar Other | Operating Segments | ||||||
Assets: | ||||||
Total assets | 788,539 | 1,463,845 | ||||
LIABILITIES AND EQUITY | ||||||
Investments in unconsolidated entities | 316,523 | 346,270 | ||||
Statement of Operations Years Ended: | ||||||
Total revenues | 44,392 | 21,457 | $ 41,079 | |||
Lennar Other | Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||||
Assets: | ||||||
Cash and cash equivalents | 413,698 | 430,807 | ||||
Loans receivable | 25,045 | 65,971 | ||||
Real estate owned | 213,103 | 279,200 | ||||
Investment securities | 2,543,715 | 2,461,788 | ||||
Investments in partnerships | 165,599 | 346,042 | ||||
Inventories | 0 | 0 | ||||
Operating properties and equipment | 0 | 0 | ||||
Other assets | 223,821 | 219,680 | ||||
Total assets | 3,584,981 | 3,803,488 | ||||
LIABILITIES AND EQUITY | ||||||
Accounts payable and other liabilities | 170,649 | 179,879 | ||||
Debt | 333,317 | 399,632 | ||||
Equity | 3,081,015 | 3,223,977 | ||||
Total liabilities and equity | $ 3,584,981 | $ 3,803,488 | ||||
[1] Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its consolidated balance sheets the assets of consolidated variable interest entities ("VIEs") that are owned by the consolidated VIEs and liabilities of consolidated VIEs as to which there is no recourse against the Company. As of November 30, 2022, total assets include $1.4 billion related to consolidated VIEs of which $56.9 million is included in Homebuilding cash and cash equivalents, $0.3 million in Homebuilding receivables, net, $29.4 million in Homebuilding finished homes and construction in progress, $736.5 million in Homebuilding land and land under development, $533.8 million in Homebuilding consolidated inventory not owned, $1.0 million in Homebuilding investments in unconsolidated entities, $23.0 million in Homebuilding other assets, $33.2 million in Multifamily assets and $9.0 million in Lennar Other assets . As of November 30, 2021, total assets include $1.1 billion related to consolidated VIEs of which $60.9 million is included in Homebuilding cash and cash equivalents, $4.4 million in Homebuilding receivables, net, $14.3 million in Homebuilding finished homes and construction in progress, $697.1 million in Homebuilding land and land under development, $239.2 million in Homebuilding consolidated inventory not owned, $1.1 million in Homebuilding investments in unconsolidated entities, $17.4 million in Homebuilding other assets and $80.6 million in Multifamily assets. As of November 30, 2022, total liabilities include $620.4 million related to consolidated VIEs as to which there was no recourse against the Company, of which $66.9 million is included in Homebuilding accounts payable, $510.9 million in Homebuilding liabilities related to consolidated inventory not owned, $29.4 million in Homebuilding senior notes and other debts payable, $7.2 million in Homebuilding other liabilities, $3.8 million in Multifamily liabilities and $2.2 million in Lennar Other liabilities. |
Homebuilding Senior Notes And_3
Homebuilding Senior Notes And Other Debts Payable (Schedule Of Senior Notes And Other Debts Payable) (Details) - Homebuilding - USD ($) $ in Thousands | Nov. 30, 2022 | Aug. 31, 2022 | Nov. 30, 2021 | |
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable, net | [1] | $ 4,047,294 | $ 4,652,338 | |
Interest rate | 8% | |||
Senior Notes | 4.875% senior notes due December 2023 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable, net | $ 399,169 | 398,345 | ||
Interest rate | 4.875% | |||
Senior Notes | 4.500% senior notes due 2024 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable, net | $ 648,975 | 648,253 | ||
Interest rate | 4.50% | |||
Senior Notes | 5.875% senior notes due 2024 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable, net | $ 434,128 | 438,810 | ||
Interest rate | 5.875% | |||
Senior Notes | 4.750% senior notes due 2025 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable, net | $ 498,892 | 498,446 | ||
Interest rate | 4.75% | |||
Senior Notes | 5.25% senior notes due 2026 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable, net | $ 404,257 | 405,497 | ||
Interest rate | 5.25% | |||
Senior Notes | 5.00% senior notes due 2027 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable, net | $ 351,741 | 352,124 | ||
Interest rate | 5% | |||
Senior Notes | 4.75% senior notes due 2027 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable, net | $ 896,259 | 895,510 | ||
Interest rate | 4.75% | |||
Senior Notes | 4.750% senior notes due 2022 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable, net | $ 0 | 573,840 | ||
Interest rate | 4.75% | 4.75% | ||
Mortgage notes on land and other debt | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable, net | $ 413,873 | $ 441,513 | ||
[1] As of November 30, 2022, total liabilities include $620.4 million related to consolidated VIEs as to which there was no recourse against the Company, of which $66.9 million is included in Homebuilding accounts payable, $510.9 million in Homebuilding liabilities related to consolidated inventory not owned, $29.4 million in Homebuilding senior notes and other debts payable, $7.2 million in Homebuilding other liabilities, $3.8 million in Multifamily liabilities and $2.2 million in Lennar Other liabilities. |
Homebuilding Senior Notes And_4
Homebuilding Senior Notes And Other Debts Payable (Narrative) (Details) - USD ($) | 12 Months Ended | ||||||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | Aug. 31, 2022 | May 31, 2022 | Apr. 30, 2022 | ||
Debt Instrument [Line Items] | |||||||
Mortgages notes on land and other debt retired | $ 48,079,000 | $ 195,212,000 | $ 604,995,000 | ||||
Loss on Extinguishment of Debt | 0 | (2,204,000) | $ 7,997,000 | ||||
Homebuilding | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes and other debts payable, net | [1] | 4,047,294,000 | 4,652,338,000 | ||||
Minimum required guarantee of debt by subsidiaries to be a guarantor | $ 75,000,000 | ||||||
Interest rate | 8% | ||||||
Weighted average interest rate | 4.30% | ||||||
Homebuilding | Mortgage notes on land and other debt | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes and other debts payable, net | $ 413,873,000 | 441,513,000 | |||||
Mortgages notes on land and other debt retired | 48,100,000 | 195,200,000 | |||||
Homebuilding | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt issuance costs | 7,600,000 | 11,000,000 | |||||
Homebuilding | Senior Notes | 4.750% senior notes due 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes and other debts payable, net | $ 0 | 573,840,000 | |||||
Interest rate | 4.75% | 4.75% | |||||
Debt Instrument, Repurchase Amount | $ 575,000,000 | ||||||
Homebuilding | Unsecured Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes and other debts payable, net | $ 0 | $ 0 | |||||
Accordion feature | 425,000,000 | ||||||
Homebuilding | Unsecured Revolving Credit Facility | Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowings | $ 2,600,000,000 | $ 2,500,000,000 | |||||
Maximum borrowings after accordion feature | 3,000,000,000 | ||||||
Homebuilding | Unsecured Revolving Credit Facility | Credit Facility, Maturing April 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowings | 350,000,000 | ||||||
Homebuilding | Letters of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowings | $ 500,000,000 | ||||||
[1] As of November 30, 2022, total liabilities include $620.4 million related to consolidated VIEs as to which there was no recourse against the Company, of which $66.9 million is included in Homebuilding accounts payable, $510.9 million in Homebuilding liabilities related to consolidated inventory not owned, $29.4 million in Homebuilding senior notes and other debts payable, $7.2 million in Homebuilding other liabilities, $3.8 million in Multifamily liabilities and $2.2 million in Lennar Other liabilities. |
Homebuilding Senior Notes And_5
Homebuilding Senior Notes And Other Debts Payable (Schedule of Letter of Credit Facilities) (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 |
Line of Credit Facility [Line Items] | ||
Letters of credit outstanding | $ 1,800,000 | |
Performance letters of credit | ||
Line of Credit Facility [Line Items] | ||
Letters of credit outstanding | 1,259,033 | $ 924,584 |
Financial Letters Of Credit | ||
Line of Credit Facility [Line Items] | ||
Letters of credit outstanding | 503,659 | 425,843 |
Surety bonds | ||
Line of Credit Facility [Line Items] | ||
Letters of credit outstanding | 4,136,715 | 3,553,047 |
Anticipated future costs primarily for site improvements related to performance surety bonds | ||
Line of Credit Facility [Line Items] | ||
Letters of credit outstanding | $ 2,273,694 | $ 1,690,861 |
Homebuilding Senior Notes And_6
Homebuilding Senior Notes And Other Debts Payable (Schedule of Senior and Convertible Senior Notes) (Details) - Homebuilding - USD ($) | 1 Months Ended | |||||||
Nov. 30, 2017 | Apr. 30, 2017 | Nov. 30, 2015 | Apr. 30, 2015 | Nov. 30, 2022 | Aug. 31, 2022 | Nov. 30, 2018 | Feb. 12, 2018 | |
Debt Instrument [Line Items] | ||||||||
Interest rate | 8% | |||||||
Senior Notes | 4.750% senior notes due 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 4.75% | 4.75% | ||||||
Senior Notes | 4.875% senior notes due December 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal Amount | $ 400,000,000 | |||||||
Net Proceeds | $ 393,622,000 | |||||||
Price | 99.169% | |||||||
Interest rate | 4.875% | |||||||
Senior Notes | 4.500% senior notes due 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal Amount | $ 650,000,000 | |||||||
Net Proceeds | $ 644,838,000 | |||||||
Price | 100% | |||||||
Interest rate | 4.50% | |||||||
Senior Notes | 5.875% senior notes due 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal Amount | $ 425,000,000 | |||||||
Interest rate | 5.875% | |||||||
Senior Notes | 4.750% senior notes due 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal Amount | $ 500,000,000 | |||||||
Net Proceeds | $ 495,528,000 | |||||||
Price | 100% | |||||||
Interest rate | 4.75% | |||||||
Senior Notes | 5.25% senior notes due 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal Amount | 400,000,000 | |||||||
Interest rate | 5.25% | |||||||
Senior Notes | 5.00% senior notes due 2027 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal Amount | $ 350,000,000 | |||||||
Interest rate | 5% | |||||||
Senior Notes | 4.75% senior notes due 2027 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal Amount | $ 900,000,000 | |||||||
Net Proceeds | $ 894,650,000 | |||||||
Price | 100% | |||||||
Interest rate | 4.75% |
Homebuilding Senior Notes And_7
Homebuilding Senior Notes And Other Debts Payable (Schedule Of Maturities Of Senior Notes And Other Debts Payable) (Details) - Homebuilding $ in Thousands | Nov. 30, 2022 USD ($) |
Segment Reporting Information [Line Items] | |
2023 | $ 223,130 |
2024 | 1,537,367 |
2025 | 566,124 |
2026 | 404,486 |
2027 | 1,265,349 |
Thereafter | $ 42,415 |
Income Taxes (Component Of Inco
Income Taxes (Component Of Income Taxes Benefit (Provision) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Current: | |||
Federal | $ 1,282,037 | $ 924,474 | $ 428,907 |
State | 330,681 | 245,941 | 135,246 |
Current income tax benefit (expense) | 1,612,718 | 1,170,415 | 564,153 |
Deferred: | |||
Federal | (193,667) | 149,349 | 59,065 |
State | (52,986) | 42,745 | 33,017 |
Deferred income tax benefit (expense) | (246,653) | 192,094 | 92,082 |
Income tax benefit (expense) | $ 1,366,065 | $ 1,362,509 | $ 656,235 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Statutory Rate And Effective Tax Rate) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||
Statutory rate | 21% | 21% | 21% |
State income taxes, net of federal income tax benefit | 4.52% | 4.03% | 4% |
Tax credits | (2.16%) | (1.73%) | (4.46%) |
Nondeductible compensation | 0% | 0.49% | 0.57% |
Tax reserves and interest expense, net | (0.83%) | 0.03% | 0% |
Deferred tax asset valuation allowance, net | 0% | (0.01%) | 0% |
Other | 0.31% | (0.29%) | (0.09%) |
Effective rate | 22.84% | 23.52% | 21.02% |
Resolution of uncertain tax position, benefit | $ 50.2 |
Income Taxes (Deferred Income T
Income Taxes (Deferred Income Taxes Assets And Liabilities, Carrying Amount) (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 |
Deferred tax assets: | ||
Inventory valuation adjustments | $ 83,330 | $ 94,624 |
Reserves and accruals | 199,451 | 187,466 |
Net operating loss carryforwards | 61,741 | 74,902 |
Capitalized expenses | 241,887 | 174,405 |
Investments in unconsolidated entities | 16,311 | 48,913 |
Employee stock incentive plan | 37,573 | 37,813 |
Other assets | 82,673 | 49,828 |
Total deferred tax assets | 722,966 | 667,951 |
Valuation allowance | (2,903) | (2,693) |
Total deferred tax assets after valuation allowance | 720,063 | 665,258 |
Deferred tax liabilities: | ||
Capitalized expenses | 177,726 | 187,332 |
Deferred income | 253,659 | 272,827 |
Unrealized gains on investments in equity securities | 0 | 164,534 |
Other liabilities | 46,270 | 44,810 |
Total deferred tax liabilities | 477,655 | 669,503 |
Net deferred tax assets | $ 242,408 | |
Net deferred tax liabilities | $ (4,245) |
Income Taxes (Net Deferred Tax
Income Taxes (Net Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 |
Segment Reporting Information [Line Items] | ||
Net deferred tax assets | $ (242,408) | |
Net deferred tax liabilities | $ (4,245) | |
Homebuilding | ||
Segment Reporting Information [Line Items] | ||
Net deferred tax assets | (154,143) | (84,198) |
Financial Services | ||
Segment Reporting Information [Line Items] | ||
Net deferred tax assets | (15,376) | |
Net deferred tax liabilities | (1,431) | |
Multifamily | ||
Segment Reporting Information [Line Items] | ||
Net deferred tax assets | (26,675) | (64,247) |
Lennar Other | ||
Segment Reporting Information [Line Items] | ||
Net deferred tax assets | $ (46,214) | |
Net deferred tax liabilities | $ (151,259) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Operating Loss Carryforwards [Line Items] | ||
Deferred tax assets, valuation allowance | $ 2,903 | $ 2,693 |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 29,672 | 32,968 |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 32,069 | $ 41,935 |
State | Minimum | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforward, term | 10 years | |
State | Maximum | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforward, term | 20 years |
Income Taxes (Summary Of Change
Income Taxes (Summary Of Changes In Gross Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Gross Unrecognized Tax Benefits [Roll Forward] | |||
Gross unrecognized tax benefits, beginning of year | $ 12,285 | $ 12,285 | $ 12,856 |
Lapse of statute of limitations | 0 | 0 | (349) |
Decreases due to settlements with tax authorities | (12,285) | 0 | (222) |
Gross unrecognized tax benefits, end of year | $ 0 | $ 12,285 | $ 12,285 |
Income Taxes (Accrued Interests
Income Taxes (Accrued Interests and Penalties) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Accrued Interests and Penalties [Roll Forward] | ||
Accrued interest and penalties, beginning of the year | $ 59,937 | $ 57,764 |
Accrual of interest and penalties (primarily related to state audits) | 0 | 2,173 |
Reduction of interest and penalties | (59,937) | 0 |
Accrued interest and penalties, end of the year | $ 0 | $ 59,937 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Numerator: | |||
Net earnings attributable to Lennar | $ 4,614,125 | $ 4,430,111 | $ 2,465,036 |
Less: distributed earnings allocated to nonvested shares | 4,471 | 2,690 | 1,658 |
Less: undistributed earnings allocated to nonvested shares | 47,509 | 50,229 | 26,731 |
Numerator for basic earnings per share | 4,562,145 | 4,377,192 | 2,436,647 |
Less: net amount attributable to noncontrolling interests in Rialto's Carried Interest Incentive Plan | 4,919 | 2,907 | 8,971 |
Numerator for diluted earnings per share | $ 4,557,226 | $ 4,374,285 | $ 2,427,676 |
Denominator: | |||
Denominator for basic earnings per share - weighted average common shares outstanding (in shares) | 289,824 | 306,612 | 309,406 |
Effect of dilutive securities: | |||
Share-based payments (in shares) | 0 | 0 | 1 |
Denominator for diluted earnings per share - weighted average common shares outstanding (in shares) | 289,824 | 306,612 | 309,407 |
Basic earnings per share (in USD per share) | $ 15.74 | $ 14.28 | $ 7.88 |
Diluted earnings per share (in USD per share) | $ 15.72 | $ 14.27 | $ 7.85 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Stock Option Awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Options to purchase outstanding and anti-dilutive shares (in shares) | 0 | 0 | 0 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Disclosure (Carrying Amounts And Estimated Fair Value Of Financial Instruments) (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 |
Homebuilding | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | $ 4,047,294 | $ 4,652,338 |
Financial Services | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans held-for-investment, net | 45,636 | 44,582 |
Investments held-to-maturity | 143,251 | 157,808 |
Notes and other debts payable | 2,135,093 | 1,726,026 |
Level 3 | Financial Services | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans held-for-investment, net | 45,647 | 44,594 |
Investments held-to-maturity | 143,208 | 184,495 |
Level 2 | Homebuilding | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | 3,993,242 | 5,046,721 |
Level 2 | Financial Services | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | 2,135,797 | 1,726,860 |
Level 2 | Multifamily | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | 16,749 | 0 |
Level 2 | Multifamily | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | $ 16,749 | $ 0 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Disclosure (Fair Value Measured On Recurring Basis) (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 |
Residential Portfolio Segment | ||
Financial Instruments [Line Items] | ||
Aggregate principal balance of loans held-for-sale | $ 1,734,480 | $ 1,586,764 |
Aggregate fair value of loans held-for-sale in excess of principal balance | 16,233 | 49,519 |
Commercial Portfolio Segment | ||
Financial Instruments [Line Items] | ||
Aggregate principal balance of loans held-for-sale | 24,000 | 0 |
Aggregate fair value of loans held-for-sale in excess of principal balance | 1,599 | 68 |
Lennar Other | ||
Financial Instruments [Line Items] | ||
Investments available-for-sale | 35,500 | 41,700 |
Fair Value, Measurements, Recurring | Financial Services | Level 1 | Forward options | ||
Financial Instruments [Line Items] | ||
Derivative asset | 9,473 | 0 |
Fair Value, Measurements, Recurring | Financial Services | Level 2 | Residential Portfolio Segment | ||
Financial Instruments [Line Items] | ||
Loans held-for-sale | 1,750,712 | 1,636,283 |
Fair Value, Measurements, Recurring | Financial Services | Level 3 | ||
Financial Instruments [Line Items] | ||
Mortgage servicing rights | 3,463 | 2,492 |
Fair Value, Measurements, Recurring | Financial Services | Level 3 | Commercial Portfolio Segment | ||
Financial Instruments [Line Items] | ||
Loans held-for-sale | 25,599 | 68 |
Fair Value, Measurements, Recurring | Lennar Other | Level 1 | ||
Financial Instruments [Line Items] | ||
Investments in equity securities | 212,981 | 906,539 |
Fair Value, Measurements, Recurring | Lennar Other | Level 3 | ||
Financial Instruments [Line Items] | ||
Investments available-for-sale | $ 35,482 | $ 41,654 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Disclosure (Narrative) (Details) - Financial Services - Mortgage servicing rights - Level 3 | Nov. 30, 2022 |
Mortgage prepayment rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Mortgage servicing rights, key assumptions | 0.08 |
Discount rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Mortgage servicing rights, key assumptions | 0.13 |
Delinquency rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Mortgage servicing rights, key assumptions | 0.07 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Disclosure (Schedule Of Gains And Losses Of Financial Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Changes in fair value included in other comprehensive income | $ 1,464 | $ (536) | $ (851) |
Lennar Other | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Lennar Other unrealized gain (loss) from technology investments | (655,094) | 510,802 | |
Fair Value, Measurements, Recurring | Loans held-for-sale | Financial Services | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Lennar Other unrealized gain (loss) from technology investments | (33,287) | (14,449) | 21,765 |
Fair Value, Measurements, Recurring | Mortgage loan commitments | Financial Services | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Lennar Other unrealized gain (loss) from technology investments | 43,695 | (8,302) | 12,774 |
Fair Value, Measurements, Recurring | Forward contracts | Financial Services | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Lennar Other unrealized gain (loss) from technology investments | (48,790) | 11,513 | (9,805) |
Fair Value, Measurements, Recurring | Forward options | Financial Services | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Lennar Other unrealized gain (loss) from technology investments | (142) | 0 | 0 |
Fair Value, Measurements, Recurring | Equity Securities | Lennar Other | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Lennar Other unrealized gain (loss) from technology investments | (655,094) | 510,802 | 0 |
Fair Value, Measurements, Recurring | Lennar Other investments available-for-sale | Lennar Other | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Changes in fair value included in other comprehensive income | $ 1,464 | $ (536) | $ (805) |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Disclosure (Reconciliation of Beginning and Ending Balance of the Company's Level 3 Recurring Fair Value Measurements (Details) - Financial Services $ in Thousands | 12 Months Ended | |
Nov. 30, 2022 USD ($) transaction | Nov. 30, 2021 USD ($) transaction | |
Fair Value Assets Measures on Recurring Basis, Unobservable Inputs [Roll Forward] | ||
Number of securitizations | transaction | 6 | 6 |
Mortgage servicing rights | ||
Fair Value Assets Measures on Recurring Basis, Unobservable Inputs [Roll Forward] | ||
Beginning of year | $ 2,492 | $ 2,113 |
Purchases/loan originations | 353 | 584 |
Sales/loan originations sold, including those not settled | 0 | 0 |
Disposals/settlements | (404) | (1,365) |
Changes in fair value | 1,022 | 1,160 |
Interest and principal paydowns | 0 | 0 |
End of year | 3,463 | 2,492 |
Loans held-for-sale | ||
Fair Value Assets Measures on Recurring Basis, Unobservable Inputs [Roll Forward] | ||
Beginning of year | 68 | 193,588 |
Purchases/loan originations | 740,345 | 774,905 |
Sales/loan originations sold, including those not settled | (715,933) | (931,023) |
Disposals/settlements | 0 | (35,837) |
Changes in fair value | 1,599 | (388) |
Interest and principal paydowns | (480) | (1,177) |
End of year | 25,599 | $ 68 |
Asset converted to loans-held-for sale | 7,300 | |
Loans Held For Sale, Excluding Securitizations | ||
Fair Value Assets Measures on Recurring Basis, Unobservable Inputs [Roll Forward] | ||
Disposals/settlements | $ (28,500) |
Financial Instruments and Fai_8
Financial Instruments and Fair Value Disclosure (Fair Value Assets Measured On Nonrecurring Basis) (Details) - Homebuilding - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Inventory write-down | $ 47,900 | ||
Fair Value, Measurements, Nonrecurring | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Finished homes and construction in progress, carrying value | 347,300 | $ 32,364 | $ 176,637 |
Finished homes and construction in progress, fair value | 295,663 | 16,342 | 148,684 |
Finished homes and construction in progress, total gains and losses | (51,637) | (16,022) | (27,953) |
Land and land under development, carrying value | 183,737 | 35,775 | 182,137 |
Land and land under development, fair value | 126,135 | 26,841 | 92,355 |
Land and land under development, total gains (losses) | (57,602) | (8,934) | (89,782) |
Other assets, carrying value | 0 | 12,764 | 0 |
Other assets, fair value | 0 | 12,024 | 0 |
Other assets, total gains (loss) | 0 | (740) | 0 |
Fair Value, Measurements, Nonrecurring | Level 3 | Equity Method Investments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets, Fair Value Adjustment | (1,454) | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 3 | Carrying Amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Equity Method Investments, Fair Value Disclosure | 1,454 | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 3 | Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Equity Method Investments, Fair Value Disclosure | $ 0 | $ 0 | $ 0 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 USD ($) entity | Nov. 30, 2021 USD ($) | ||
Variable Interest Entity [Line Items] | |||
Assets | [1] | $ 37,984,295 | $ 33,207,778 |
Liabilities | [2] | 13,743,928 | 12,211,496 |
Letters of credit outstanding | 1,800,000 | ||
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Assets | 1,400,000 | 1,100,000 | |
Liabilities | 620,400 | 258,500 | |
Variable Interest Entity, Entities Consolidated | |||
Variable Interest Entity [Line Items] | |||
Assets | 134,800 | ||
Variable Interest Entity, Four Entities Consolidated | |||
Variable Interest Entity [Line Items] | |||
Assets | 244,300 | ||
Liabilities | 74,200 | ||
Homebuilding | |||
Variable Interest Entity [Line Items] | |||
Assets | [1] | 32,684,162 | 27,467,819 |
Liabilities | [2] | $ 10,978,646 | 9,870,242 |
Homebuilding | Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Number of entities consolidated during period | entity | 6 | ||
Multifamily | |||
Variable Interest Entity [Line Items] | |||
Assets | [1] | $ 1,257,337 | 1,311,747 |
Liabilities | [2] | 313,484 | 288,930 |
Multifamily | Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Assets | 33,200 | 80,600 | |
Liabilities | 3,800 | 2,800 | |
Financial Services | |||
Variable Interest Entity [Line Items] | |||
Assets | [1] | 3,254,257 | 2,964,367 |
Liabilities | [2] | $ 2,353,904 | $ 1,906,343 |
[1] Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its consolidated balance sheets the assets of consolidated variable interest entities ("VIEs") that are owned by the consolidated VIEs and liabilities of consolidated VIEs as to which there is no recourse against the Company. As of November 30, 2022, total assets include $1.4 billion related to consolidated VIEs of which $56.9 million is included in Homebuilding cash and cash equivalents, $0.3 million in Homebuilding receivables, net, $29.4 million in Homebuilding finished homes and construction in progress, $736.5 million in Homebuilding land and land under development, $533.8 million in Homebuilding consolidated inventory not owned, $1.0 million in Homebuilding investments in unconsolidated entities, $23.0 million in Homebuilding other assets, $33.2 million in Multifamily assets and $9.0 million in Lennar Other assets . As of November 30, 2021, total assets include $1.1 billion related to consolidated VIEs of which $60.9 million is included in Homebuilding cash and cash equivalents, $4.4 million in Homebuilding receivables, net, $14.3 million in Homebuilding finished homes and construction in progress, $697.1 million in Homebuilding land and land under development, $239.2 million in Homebuilding consolidated inventory not owned, $1.1 million in Homebuilding investments in unconsolidated entities, $17.4 million in Homebuilding other assets and $80.6 million in Multifamily assets. As of November 30, 2022, total liabilities include $620.4 million related to consolidated VIEs as to which there was no recourse against the Company, of which $66.9 million is included in Homebuilding accounts payable, $510.9 million in Homebuilding liabilities related to consolidated inventory not owned, $29.4 million in Homebuilding senior notes and other debts payable, $7.2 million in Homebuilding other liabilities, $3.8 million in Multifamily liabilities and $2.2 million in Lennar Other liabilities. |
Variable Interest Entities (Est
Variable Interest Entities (Estimated Maximum Exposure To Loss) (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 | |
Variable Interest Entity [Line Items] | |||
Assets | [1] | $ 37,984,295 | $ 33,207,778 |
Letters of credit outstanding | 1,800,000 | ||
Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Assets | 1,393,622 | 857,199 | |
Lennar's Maximum Exposure to Loss | 1,551,856 | 1,084,044 | |
Variable Interest Entity, Not Primary Beneficiary Including Third Parties | |||
Variable Interest Entity [Line Items] | |||
Non-refundable option deposits and pre-acquisition costs | 1,990,946 | 1,228,057 | |
Variable Interest Entity, Not Primary Beneficiary Including Third Parties | Letters of Credit | |||
Variable Interest Entity [Line Items] | |||
Letters of credit outstanding | 163,942 | 175,937 | |
Homebuilding | |||
Variable Interest Entity [Line Items] | |||
Assets | [1] | 32,684,162 | 27,467,819 |
Homebuilding | Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Assets | 586,935 | 107,323 | |
Lennar's Maximum Exposure to Loss | 718,719 | 301,619 | |
Homebuilding | Upward America Venture | Variable Interest Entity, Not Primary Beneficiary | Commitment To Fund Capital | |||
Variable Interest Entity [Line Items] | |||
Obligations related to VIEs | 77,300 | 106,100 | |
Homebuilding | Upward America Venture | Variable Interest Entity, Not Primary Beneficiary | Commitment For Short-term Loan And Management Fee Receivable | |||
Variable Interest Entity [Line Items] | |||
Obligations related to VIEs | 52,700 | 87,900 | |
Multifamily | |||
Variable Interest Entity [Line Items] | |||
Assets | [1] | 1,257,337 | 1,311,747 |
Multifamily | Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Assets | 607,484 | 579,388 | |
Lennar's Maximum Exposure to Loss | 633,934 | 611,937 | |
Multifamily | Equity Commitments | Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Obligations related to VIEs | 19,300 | 23,100 | |
Financial Services | |||
Variable Interest Entity [Line Items] | |||
Assets | [1] | 3,254,257 | 2,964,367 |
Financial Services | Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Assets | 143,251 | 157,808 | |
Lennar's Maximum Exposure to Loss | 143,251 | 157,808 | |
Lennar Other | |||
Variable Interest Entity [Line Items] | |||
Assets | [1] | 788,539 | 1,463,845 |
Lennar Other | Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Assets | 55,952 | 12,680 | |
Lennar's Maximum Exposure to Loss | $ 55,952 | $ 12,680 | |
[1] Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its consolidated balance sheets the assets of consolidated variable interest entities ("VIEs") that are owned by the consolidated VIEs and liabilities of consolidated VIEs as to which there is no recourse against the Company. As of November 30, 2022, total assets include $1.4 billion related to consolidated VIEs of which $56.9 million is included in Homebuilding cash and cash equivalents, $0.3 million in Homebuilding receivables, net, $29.4 million in Homebuilding finished homes and construction in progress, $736.5 million in Homebuilding land and land under development, $533.8 million in Homebuilding consolidated inventory not owned, $1.0 million in Homebuilding investments in unconsolidated entities, $23.0 million in Homebuilding other assets, $33.2 million in Multifamily assets and $9.0 million in Lennar Other assets . As of November 30, 2021, total assets include $1.1 billion related to consolidated VIEs of which $60.9 million is included in Homebuilding cash and cash equivalents, $4.4 million in Homebuilding receivables, net, $14.3 million in Homebuilding finished homes and construction in progress, $697.1 million in Homebuilding land and land under development, $239.2 million in Homebuilding consolidated inventory not owned, $1.1 million in Homebuilding investments in unconsolidated entities, $17.4 million in Homebuilding other assets and $80.6 million in Multifamily assets. |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Other Commitments [Line Items] | |||
Non-refundable option deposits and pre-acquisition costs | $ 2,000,000 | ||
Rental Expense | 105,414 | $ 84,991 | $ 82,090 |
Letters of credit outstanding | 1,800,000 | ||
Costs to Complete Related to Site Improvements | |||
Other Commitments [Line Items] | |||
Costs to complete related to site improvements | $ 2,300,000 | ||
Costs to complete related to site improvements as a percent | 55% | ||
Surety bonds | |||
Other Commitments [Line Items] | |||
Outstanding surety bonds | $ 4,100,000 |
Commitment and Contingencies (A
Commitment and Contingencies (Additional Information about Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Right-of-use assets | $ 149,966 | ||
Operating lease liability | $ 158,832 | ||
Operating Lease, Weighted Average Remaining Lease Term | 7 years 10 months 24 days | ||
Lessee, Operating Lease, Discount Rate | 3% | ||
Rental Expense | $ 105,414 | $ 84,991 | $ 82,090 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | ||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities |
Commitments And Contingent Li_4
Commitments And Contingent Liabilities (Future Minimum Payments Under Noncancellable Leases) (Details) $ in Thousands | Nov. 30, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | $ 34,167 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 28,672 |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 24,049 |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 18,753 |
Lessee, Operating Lease, Liability, Payments, Due after Year Four | 73,036 |
Lessee, Operating Lease, Liability, Payments, Due | 178,677 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 19,845 |
Operating lease liability | 158,832 |
Variable lease costs | 23,000 |
Short-term lease costs | $ 2,700 |
Schedule II-Valuation And Qua_2
Schedule II-Valuation And Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Allowance for credit losses against notes and other receivables | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | $ 2,531 | $ 2,394 | $ 3,379 |
Additions, Charged to costs and expenses | 145 | 79 | 661 |
Additions, Charged (credited) to other accounts | (497) | 59 | (568) |
Deductions | 0 | (1) | (1,078) |
Ending balance | 2,179 | 2,531 | 2,394 |
Allowance for loan losses against loans receivable | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | 2,091 | 4,012 | 4,122 |
Additions, Charged to costs and expenses | 9,127 | 0 | 795 |
Additions, Charged (credited) to other accounts | 0 | (31) | 17 |
Deductions | (88) | (1,890) | (922) |
Ending balance | 11,130 | 2,091 | 4,012 |
Allowance against net deferred tax assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | 2,693 | 4,411 | 4,341 |
Additions, Charged to costs and expenses | 784 | 0 | 70 |
Additions, Charged (credited) to other accounts | 0 | (1,556) | 0 |
Deductions | (574) | (162) | 0 |
Ending balance | $ 2,903 | $ 2,693 | $ 4,411 |