Document And Entity Information
Document And Entity Information | 3 Months Ended |
Feb. 28, 2023 shares | |
Class of Stock [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Feb. 28, 2023 |
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 Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Current Fiscal Year End Date | --11-30 |
Entity Shell Company | false |
Entity Central Index Key | 0000920760 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Common Class A | |
Class of Stock [Line Items] | |
Title of 12(b) Security | Class A Common Stock, par value $.10 |
Trading Symbol | LEN |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 253,773,163 |
Common Class B | |
Class of Stock [Line Items] | |
Title of 12(b) Security | Class B Common Stock, par value $.10 |
Trading Symbol | LEN.B |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 35,627,560 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 28, 2023 | Nov. 30, 2022 | |
Inventories: | |||
Total assets | [1] | $ 36,573,154 | $ 37,984,295 |
Stockholders' equity: | |||
Preferred stock | [2] | 0 | 0 |
Additional paid-in capital | [2] | 5,503,789 | 5,417,796 |
Retained earnings | [2] | 19,350,060 | 18,861,417 |
Treasury stock at cost | [2] | (468,347) | (210,389) |
Accumulated other comprehensive income | [2] | 3,259 | 2,408 |
Total stockholders’ equity | [2] | 24,418,255 | 24,100,500 |
Noncontrolling interests | [2] | 137,032 | 139,867 |
Total equity | [2] | 24,555,287 | 24,240,367 |
Total liabilities | [2] | 12,017,867 | 13,743,928 |
Total liabilities and equity | [2] | 36,573,154 | 37,984,295 |
Operating Segments | |||
ASSETS | |||
Cash and cash equivalents | 4,242,856 | 4,778,720 | |
Restricted cash | 31,301 | 37,050 | |
Receivables, net | 999,966 | 1,614,277 | |
Inventories: | |||
Total inventories | 22,067,833 | 21,862,453 | |
Investments in unconsolidated entities | 2,129,933 | 2,137,813 | |
Goodwill | 3,632,058 | 3,632,058 | |
Other assets | 1,644,859 | 1,530,218 | |
Total assets | 36,573,154 | 37,984,295 | |
LIABILITIES AND EQUITY | |||
Senior notes and other debts payable, net | 5,221,801 | 6,199,136 | |
Stockholders' equity: | |||
Total liabilities | 12,017,867 | 13,743,928 | |
Common Class A | |||
Stockholders' equity: | |||
Common stock | [2] | 25,834 | 25,608 |
Common Class B | |||
Stockholders' equity: | |||
Common stock | [2] | 3,660 | 3,660 |
Homebuilding | |||
Inventories: | |||
Finished homes and construction in progress | [1] | 11,945,232 | 11,718,507 |
Land and land under development | [1] | 7,459,185 | 7,382,273 |
Consolidated inventory not owned | [1] | 2,223,469 | 2,331,231 |
Total inventories | [1] | 21,627,886 | 21,432,011 |
Investments in unconsolidated entities | [1] | 1,178,802 | 1,173,164 |
Goodwill | [1] | 3,442,359 | 3,442,359 |
Other assets | [1] | 1,412,654 | 1,323,478 |
Total assets | [1] | 32,302,100 | 32,684,162 |
LIABILITIES AND EQUITY | |||
Accounts payable | [2] | 1,490,808 | 1,616,128 |
Liabilities related to consolidated inventory not owned | [2] | 1,867,373 | 1,967,551 |
Senior notes and other debts payable, net | [2] | 4,033,335 | 4,047,294 |
Other liabilities | [2] | 2,937,472 | 3,347,673 |
Stockholders' equity: | |||
Total liabilities | [2] | 10,328,988 | 10,978,646 |
Homebuilding | Operating Segments | |||
ASSETS | |||
Cash and cash equivalents | [1] | 4,057,956 | 4,616,124 |
Restricted cash | [1] | 22,504 | 23,046 |
Receivables, net | [1] | 559,939 | 673,980 |
Inventories: | |||
Total inventories | 21,627,886 | 21,432,011 | |
Investments in unconsolidated entities | 1,178,802 | 1,173,164 | |
Goodwill | 3,442,359 | 3,442,359 | |
Other assets | 1,412,654 | 1,323,478 | |
Total assets | 32,302,100 | 32,684,162 | |
LIABILITIES AND EQUITY | |||
Senior notes and other debts payable, net | 4,033,335 | 4,047,294 | |
Stockholders' equity: | |||
Total liabilities | 10,328,988 | 10,978,646 | |
Financial Services | |||
Inventories: | |||
Total assets | [1] | 2,213,421 | 3,254,257 |
Stockholders' equity: | |||
Total liabilities | [2] | 1,317,775 | 2,353,904 |
Financial Services | Operating Segments | |||
ASSETS | |||
Cash and cash equivalents | 163,000 | 139,378 | |
Restricted cash | 8,797 | 14,004 | |
Receivables, net | 329,331 | 826,163 | |
Inventories: | |||
Total inventories | 0 | 0 | |
Investments in unconsolidated entities | 0 | 0 | |
Goodwill | 189,699 | 189,699 | |
Other assets | 101,947 | 119,815 | |
Total assets | 2,213,421 | 3,254,257 | |
LIABILITIES AND EQUITY | |||
Senior notes and other debts payable, net | 1,171,638 | 2,135,093 | |
Stockholders' equity: | |||
Total liabilities | 1,317,775 | 2,353,904 | |
Multifamily | |||
Inventories: | |||
Total assets | [1] | 1,266,777 | 1,257,337 |
Stockholders' equity: | |||
Total liabilities | [2] | 283,380 | 313,484 |
Multifamily | Operating Segments | |||
ASSETS | |||
Cash and cash equivalents | 15,075 | 17,827 | |
Restricted cash | 0 | 0 | |
Receivables, net | 110,696 | 114,134 | |
Inventories: | |||
Total inventories | 439,947 | 430,442 | |
Investments in unconsolidated entities | 635,499 | 648,126 | |
Goodwill | 0 | 0 | |
Other assets | 65,560 | 46,808 | |
Total assets | 1,266,777 | 1,257,337 | |
LIABILITIES AND EQUITY | |||
Senior notes and other debts payable, net | 16,828 | 16,749 | |
Stockholders' equity: | |||
Total liabilities | 283,380 | 313,484 | |
Lennar Other | |||
Inventories: | |||
Total assets | [1] | 790,856 | 788,539 |
Stockholders' equity: | |||
Total liabilities | [2] | 87,724 | 97,894 |
Lennar Other | Operating Segments | |||
ASSETS | |||
Cash and cash equivalents | 6,825 | 5,391 | |
Restricted cash | 0 | 0 | |
Receivables, net | 0 | 0 | |
Inventories: | |||
Total inventories | 0 | 0 | |
Investments in unconsolidated entities | 315,632 | 316,523 | |
Goodwill | 0 | 0 | |
Other assets | 64,698 | 40,117 | |
Total assets | 790,856 | 788,539 | |
LIABILITIES AND EQUITY | |||
Senior notes and other debts payable, net | 0 | 0 | |
Stockholders' equity: | |||
Total liabilities | $ 87,724 | $ 97,894 | |
[1] Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations ("ASC 810"), the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities ("VIEs") and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations. As of February 28, 2023, total assets include $1.4 billion related to consolidated VIEs of which $31.1 million is included in Homebuilding cash and cash equivalents, $0.7 million in Homebuilding receivables, net, $59.0 million in Homebuilding finished homes and construction in progress, $742.4 million in Homebuilding land and land under development, $502.0 million in Homebuilding consolidated inventory not owned, $0.7 million in Homebuilding investments in unconsolidated entities, $21.1 million in Homebuilding other assets, $31.0 million in Multifamily assets and $6.8 million in Lennar Other assets. 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 $9.0 million in Lennar Other assets. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Feb. 28, 2023 | Nov. 30, 2022 | |
Total assets | [1] | $ 36,573,154 | $ 37,984,295 |
Total liabilities | [2] | $ 12,017,867 | $ 13,743,928 |
Common Class A | |||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 | |
Common stock, shares authorized | 400,000,000 | 400,000,000 | |
Common stock, shares issued | 258,339,930 | 256,084,147 | |
Treasury stock, shares | 4,566,767 | 2,455,387 | |
Common Class B | |||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 | |
Common stock, shares authorized | 90,000,000 | 90,000,000 | |
Common stock, shares issued | 36,601,215 | 36,601,215 | |
Treasury stock, shares | 973,655 | 419,860 | |
Homebuilding | |||
Total assets | [1] | $ 32,302,100 | $ 32,684,162 |
Finished homes and construction in progress | [1] | 11,945,232 | 11,718,507 |
Land and land under development | [1] | 7,459,185 | 7,382,273 |
Consolidated inventory not owned | [1] | 2,223,469 | 2,331,231 |
Investments in unconsolidated entities | [1] | 1,178,802 | 1,173,164 |
Other assets | [1] | 1,412,654 | 1,323,478 |
Total liabilities | [2] | 10,328,988 | 10,978,646 |
Accounts payable | [2] | 1,490,808 | 1,616,128 |
Liabilities related to consolidated inventory not owned | [2] | 1,867,373 | 1,967,551 |
Senior notes and other debts payable, net | [2] | 4,033,335 | 4,047,294 |
Other liabilities | [2] | 2,937,472 | 3,347,673 |
Multifamily | |||
Total assets | [1] | 1,266,777 | 1,257,337 |
Total liabilities | [2] | 283,380 | 313,484 |
Lennar Other | |||
Total assets | [1] | 790,856 | 788,539 |
Total liabilities | [2] | 87,724 | 97,894 |
Variable Interest Entity, Primary Beneficiary | |||
Total assets | 1,400,000 | 1,400,000 | |
Total liabilities | 580,000 | 620,400 | |
Variable Interest Entity, Primary Beneficiary | Homebuilding | |||
Cash and cash equivalents | 31,100 | 56,900 | |
Receivables, net | 700 | 300 | |
Finished homes and construction in progress | 59,000 | 29,400 | |
Land and land under development | 742,400 | 736,500 | |
Consolidated inventory not owned | 502,000 | 533,800 | |
Investments in unconsolidated entities | 700 | 1,000 | |
Other assets | 21,100 | 23,000 | |
Accounts payable | 64,400 | 66,900 | |
Liabilities related to consolidated inventory not owned | 477,600 | 510,900 | |
Senior notes and other debts payable, net | 30,100 | 29,400 | |
Other liabilities | 2,100 | 7,200 | |
Variable Interest Entity, Primary Beneficiary | Multifamily | |||
Total assets | 31,000 | 33,200 | |
Total liabilities | 3,700 | 3,800 | |
Variable Interest Entity, Primary Beneficiary | Lennar Other | |||
Total assets | 6,800 | 9,000 | |
Total liabilities | $ 2,100 | $ 2,200 | |
[1] Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations ("ASC 810"), the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities ("VIEs") and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations. As of February 28, 2023, total assets include $1.4 billion related to consolidated VIEs of which $31.1 million is included in Homebuilding cash and cash equivalents, $0.7 million in Homebuilding receivables, net, $59.0 million in Homebuilding finished homes and construction in progress, $742.4 million in Homebuilding land and land under development, $502.0 million in Homebuilding consolidated inventory not owned, $0.7 million in Homebuilding investments in unconsolidated entities, $21.1 million in Homebuilding other assets, $31.0 million in Multifamily assets and $6.8 million in Lennar Other assets. 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 $9.0 million in Lennar Other assets. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Cost and expenses: | ||
Earnings (loss) before income taxes | $ 784,453 | $ 676,735 |
Provision for income taxes | (185,145) | (167,420) |
Net earnings (including net earnings attributable to noncontrolling interests) | 599,308 | 509,315 |
Less: Net earnings attributable to noncontrolling interests | 2,774 | 5,734 |
Net earnings attributable to Lennar | 596,534 | 503,581 |
Other comprehensive income, net of tax: | ||
Net unrealized gain on securities available-for-sale | 851 | 742 |
Reclassification adjustments for gain included in earnings, net of tax | 0 | 2,285 |
Total other comprehensive income, net of tax | 851 | 3,027 |
Total comprehensive income attributable to Lennar | 597,385 | 506,608 |
Total comprehensive income attributable to noncontrolling interests | $ 2,774 | $ 5,734 |
Basic earnings per share (in dollars per share) | $ 2.06 | $ 1.70 |
Diluted earnings per share (in dollars per share) | $ 2.06 | $ 1.69 |
Operating Segments And Corporate | ||
Cost and expenses: | ||
Total costs and expenses | $ 5,674,155 | $ 5,123,151 |
Earnings (loss) before income taxes | 784,453 | 676,735 |
Operating Segments | ||
Revenues [Abstract] | ||
Revenues | 6,490,429 | 6,203,516 |
Corporate and Unallocated | ||
Cost and expenses: | ||
Corporate general and administrative | 126,106 | 113,661 |
Charitable foundation contribution | 13,659 | 12,538 |
Earnings (loss) before income taxes | (139,765) | (126,199) |
Homebuilding | Operating Segments | ||
Revenues [Abstract] | ||
Revenues | 6,156,305 | 5,752,205 |
Cost and expenses: | ||
Cost and expenses | 5,274,714 | 4,641,898 |
Equity in earnings (loss) from unconsolidated entities, other income (expense), net, and other gain (loss) | 3,186 | (286) |
Homebuilding other income (expense), net | 22,062 | (171) |
Earnings (loss) before income taxes | 906,839 | 1,109,850 |
Financial Services | Operating Segments | ||
Revenues [Abstract] | ||
Revenues | 182,981 | 176,701 |
Cost and expenses: | ||
Cost and expenses | 104,244 | 85,910 |
Earnings (loss) before income taxes | 78,737 | 90,791 |
Multifamily | Operating Segments | ||
Revenues [Abstract] | ||
Revenues | 143,523 | 267,359 |
Cost and expenses: | ||
Cost and expenses | 148,956 | 263,737 |
Equity in earnings (loss) from unconsolidated entities, other income (expense), net, and other gain (loss) | (16,168) | 1,805 |
Earnings (loss) before income taxes | (21,601) | 5,427 |
Lennar Other | Operating Segments | ||
Revenues [Abstract] | ||
Revenues | 7,620 | 7,251 |
Cost and expenses: | ||
Cost and expenses | 6,476 | 5,407 |
Equity in earnings (loss) from unconsolidated entities, other income (expense), net, and other gain (loss) | (16,947) | (9,808) |
Lennar Other unrealized loss from technology investments | (23,954) | (395,170) |
Earnings (loss) before income taxes | $ (39,757) | $ (403,134) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | ||
Cash flows from operating activities: | |||
Net earnings (including net earnings attributable to noncontrolling interests) | $ 599,308 | $ 509,315 | |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 20,305 | 20,089 | |
Amortization of discount/premium on debt, net | (838) | (490) | |
Equity in loss from unconsolidated entities | 31,187 | 9,752 | |
Distributions of earnings from unconsolidated entities | 4,623 | 4,822 | |
Share-based compensation expense | 86,558 | 81,457 | |
Deferred income tax benefit | (81,940) | (54,032) | |
Loans held-for-sale unrealized loss | 31,462 | 27,387 | |
Lennar Other unrealized losses from technology investments | 23,954 | 395,170 | |
Valuation adjustments and write-offs of option deposits, pre-acquisition costs and other assets | 25,846 | 11,509 | |
Changes in assets and liabilities: | |||
Decrease in receivables | 602,757 | 380,502 | |
Increase in inventories, excluding valuation adjustments and write-offs of option deposits and pre-acquisition costs | (177,705) | (1,913,634) | |
Increase in other assets | (8,139) | (49,968) | |
Decrease in loans held-for-sale | 511,807 | 409,435 | |
(Decrease) increase in accounts payable and other liabilities | (690,980) | 96,455 | |
Net cash provided by (used in) operating activities | 978,205 | (72,231) | |
Cash flows from investing activities: | |||
Net additions of operating properties and equipment | (5,423) | (5,780) | |
Investments in and contributions to unconsolidated entities | (57,281) | (138,909) | |
Distributions of capital from unconsolidated entities | 23,993 | 173,561 | |
Proceeds from sale of commercial mortgage-backed securities bonds | 0 | 9,191 | |
Decrease in Financial Services loans held-for-investment, net | 418 | 11,431 | |
Purchases of investment securities | 0 | (71,269) | |
Proceeds from maturities/sales of investment securities | 1,938 | 1,783 | |
Net cash used in investing activities | (36,355) | (19,992) | |
Cash flows from financing activities: | |||
Net repayments under warehouse facilities | (963,455) | (528,667) | |
Principal payments on notes payable and other borrowings | (26,621) | (18,776) | |
Proceeds from liabilities related to consolidated inventory not owned | 70,369 | 199,483 | |
Payments related to consolidated inventory not owned | (177,891) | (166,100) | |
Payments related to other liabilities, net | (1,257) | 0 | |
Receipts related to noncontrolling interests | 2,497 | 6,984 | |
Payments related to noncontrolling interests | (21,256) | (59,388) | |
Common stock: | |||
Repurchases | (257,958) | (581,300) | |
Dividends | (107,891) | (110,122) | |
Net cash used in financing activities | (1,483,463) | (1,257,886) | |
Net decrease in cash and cash equivalents and restricted cash | (541,613) | (1,350,109) | |
Cash and cash equivalents and restricted cash at beginning of period | 4,815,770 | 2,955,683 | |
Cash and cash equivalents and restricted cash at end of period | 4,274,157 | 1,605,574 | |
Total cash and cash equivalents and restricted cash | 4,274,157 | 1,605,574 | |
Operating Segments | |||
Common stock: | |||
Cash and cash equivalents and restricted cash at end of period | 4,274,157 | 1,605,574 | |
Cash and cash equivalents | 4,242,856 | ||
Restricted cash | 31,301 | ||
Total cash and cash equivalents and restricted cash | 4,274,157 | 1,605,574 | |
Homebuilding | Operating Segments | |||
Common stock: | |||
Cash and cash equivalents | 4,057,956 | [1] | 1,366,597 |
Restricted cash | 22,504 | [1] | 27,025 |
Financial Services | Operating Segments | |||
Common stock: | |||
Cash and cash equivalents | 163,000 | 168,032 | |
Restricted cash | 8,797 | 6,724 | |
Multifamily | Operating Segments | |||
Common stock: | |||
Cash and cash equivalents | 15,075 | 34,439 | |
Restricted cash | 0 | ||
Lennar Other | Operating Segments | |||
Common stock: | |||
Cash and cash equivalents | 6,825 | 2,757 | |
Restricted cash | 0 | ||
Lennar Homebuilding and Lennar Multifamily | Operating Segments | |||
Homebuilding and Multifamily: | |||
Purchases of inventories and other assets financed by sellers | 13,500 | 6,150 | |
Non-cash contributions to unconsolidated entities | $ 120 | $ 124,864 | |
[1] Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations ("ASC 810"), the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities ("VIEs") and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations. As of February 28, 2023, total assets include $1.4 billion related to consolidated VIEs of which $31.1 million is included in Homebuilding cash and cash equivalents, $0.7 million in Homebuilding receivables, net, $59.0 million in Homebuilding finished homes and construction in progress, $742.4 million in Homebuilding land and land under development, $502.0 million in Homebuilding consolidated inventory not owned, $0.7 million in Homebuilding investments in unconsolidated entities, $21.1 million in Homebuilding other assets, $31.0 million in Multifamily assets and $6.8 million in Lennar Other assets. 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. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Feb. 28, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Basis of Consolidation The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended November 30, 2022. The basis of consolidation is unchanged from the disclosure in the Company's Notes to Consolidated Financial Statements section in its Form 10-K for the year ended November 30, 2022. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for the fair presentation of the accompanying condensed consolidated financial statements have been made. The Company has historically experienced, and expects to continue to experience, variability in quarterly results. The condensed consolidated statements of operations for the three months ended February 28, 2023 are not necessarily indicative of the results to be expected for the full year. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Cash and Cash Equivalents Homebuilding cash and cash equivalents as of February 28, 2023 and November 30, 2022 included $488.0 million and $1.0 billion, respectively, of cash held in escrow for approximately two days. Share-based Payments During the three months ended February 28, 2023 and 2022, the Company granted employees 1.6 million and 1.4 million of nonvested shares, respectively. Recently Adopted Accounting Pronouncements 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, 2024, with earlier adoption permitted. In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform - Scope, ” which clarified the scope and application of the original guidance. In December 2022, the FASB issued ASU 2022-06, "Reference Rate Reform - Deferral of the Sunset Date of Topic 848," |
Operating and Reporting Segment
Operating and Reporting Segments | 3 Months Ended |
Feb. 28, 2023 | |
Segment Reporting [Abstract] | |
Operating and Reporting Segments | Operating and Reporting Segments The Company's homebuilding operations construct and sell homes primarily for first-time, move-up and active adult homebuyers primarily under the Lennar brand name. In addition, the Company's homebuilding operations purchase, develop and sell land to third parties. The Company's chief operating decision makers manage and assess the Company’s performance at a regional level. Therefore, the Company performed an assessment of its operating segments in accordance with ASC 280, Segment Reporting , and determined that the following are its operating and reportable segments: Homebuilding segments: (1) East (2) Central (3) Texas (4) West (5) Financial Services (6) Multifamily (7) Lennar Other The assets and liabilities related to the Company’s segments were as follows: (In thousands) February 28, 2023 Assets: Homebuilding Financial Multifamily Lennar Total Cash and cash equivalents $ 4,057,956 163,000 15,075 6,825 4,242,856 Restricted cash 22,504 8,797 — — 31,301 Receivables, net (1) 559,939 329,331 110,696 — 999,966 Inventories 21,627,886 — 439,947 — 22,067,833 Loans held-for-sale (2) — 1,233,466 — — 1,233,466 Investments in equity securities (3) — — — 367,369 367,369 Investments available-for-sale (4) — — — 36,332 36,332 Loans held-for-investment, net — 45,327 — — 45,327 Investments held-to-maturity — 141,854 — — 141,854 Investments in unconsolidated entities 1,178,802 — 635,499 315,632 2,129,933 Goodwill 3,442,359 189,699 — — 3,632,058 Other assets 1,412,654 101,947 65,560 64,698 1,644,859 $ 32,302,100 2,213,421 1,266,777 790,856 36,573,154 Liabilities: Notes and other debts payable, net $ 4,033,335 1,171,638 16,828 — 5,221,801 Accounts payable and other liabilities 6,295,653 146,137 266,552 87,724 6,796,066 $ 10,328,988 1,317,775 283,380 87,724 12,017,867 (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-investment, 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 (1) Receivables, net for Financial Services primarily related to loans sold to investors for which the Company had not yet been paid as of February 28, 2023 and November 30, 2022, 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 without readily available fair values as of both February 28, 2023 and November 30, 2022, 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 on the condensed consolidated balance sheet. Financial information relating to the Company’s segments was as follows: Three Months Ended February 28, 2023 (In thousands) Homebuilding Financial Services Multifamily Lennar Other Corporate and Total Revenues $ 6,156,305 182,981 143,523 7,620 — 6,490,429 Operating earnings (loss) 906,839 78,737 (21,601) (39,757) — 924,218 Corporate general and administrative expenses — — — — 126,106 126,106 Charitable foundation contribution — — — — 13,659 13,659 Earnings (loss) before income taxes 906,839 78,737 (21,601) (39,757) (139,765) 784,453 Three Months Ended February 28, 2022 Revenues $ 5,752,205 176,701 267,359 7,251 — 6,203,516 Operating earnings (loss) 1,109,850 90,791 5,427 (403,134) — 802,934 Corporate general and administrative expenses — — — — 113,661 113,661 Charitable foundation contribution — — — — 12,538 12,538 Earnings (loss) before income taxes 1,109,850 90,791 5,427 (403,134) (126,199) 676,735 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 FivePoint Holdings, LLC ("FivePoint") The assets related to the Company’s homebuilding segments were as follows: (In thousands) East Central Texas West Other Corporate and Unallocated Total Homebuilding February 28, 2023 $ 6,800,191 4,074,510 3,592,725 12,076,029 1,371,403 4,387,242 32,302,100 November 30, 2022 6,877,581 4,010,610 3,742,663 12,182,709 1,382,864 4,487,735 32,684,162 Financial information relating to the Company’s homebuilding segments was as follows: Three Months Ended February 28, 2023 (In thousands) East Central Texas West Other Total Homebuilding Revenues $ 1,875,977 1,048,007 1,022,052 2,205,061 5,208 6,156,305 Operating earnings (loss) 424,196 130,522 125,319 230,500 (3,698) 906,839 Three Months Ended February 28, 2022 Revenues $ 1,670,186 1,109,272 812,619 2,150,798 9,330 5,752,205 Operating earnings (loss) 351,995 152,078 171,312 441,448 (6,983) 1,109,850 Financial Services Operations of the Financial Services segment include primarily mortgage financing, title and closing services primarily for buyers of the Company’s homes. It also includes originating and selling into securitizations commercial mortgage loans through its LMF Commercial business. Financial Services’ operating earnings consist of revenues generated primarily from mortgage financing, title and closing services, and property and casualty insurance, less the cost of such services and certain selling, general and administrative expenses incurred by the segment. The Financial Services segment operates generally in the same states as the Company’s homebuilding operations. At February 28, 2023, the Financial Services warehouse facilities were all 364-day repurchase facilities and were used to fund residential mortgages or commercial mortgages for LMF Commercial as follows: (In thousands) Maximum Aggregate Commitment Residential facilities maturing: May 2023 $ 200,000 August 2023 600,000 December 2023 500,000 Total - Residential facilities $ 1,300,000 LMF Commercial facilities maturing July 2023 $ 50,000 November 2023 100,000 December 2023 400,000 Total - LMF Commercial facilities $ 550,000 Total $ 1,850,000 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 80% interests in the originated commercial loans financed. Borrowings and collateral under the facilities and their prior year predecessors were as follows: (In thousands) February 28, 2023 November 30, 2022 Borrowings under the residential facilities $ 1,028,283 1,877,411 Collateral under the residential facilities 1,064,394 1,950,155 Borrowings under the LMF Commercial facilities 11,397 124,399 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 three months ended February 28, 2023 and 2022. Loan origination liabilities were $12.1 million and $11.8 million as of February 28, 2023 and November 30, 2022, respectively, and included in Financial Services’ liabilities in the Company's condensed consolidated balance sheets. LMF Commercial - loans held-for-sale LMF Commercial originated commercial loans as follows: Three Months Ended February 28, (Dollars in thousands) 2023 2022 Originations (1) $ 79,480 264,845 Sold 77,200 178,082 Securitizations 1 1 (1) During both the three months ended February 28, 2023 and 2022, all the commercial loans originated were recorded as loans held-for-sale, which are held at fair value. Investments held-to-maturity At February 28, 2023 and November 30, 2022, 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 either the three months ended February 28, 2023 or 2022. The Company has financing agreements to finance CMBS that have been purchased as investments by the Financial Services segment. Details related to Financial Services' CMBS were as follows: (Dollars in thousands) February 28, 2023 November 30, 2022 Carrying value $ 141,854 143,251 Outstanding debt, net of debt issuance costs 131,959 133,283 Incurred interest rate 3.4% 3.4% February 28, 2023 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 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 (loss) from mark-to-market adjustments on the Company's technology investments: Three Months Ended February 28, (In thousands) 2023 2022 Blend Labs (BLND) $ 586 (7,442) Hippo (HIPO) 6,632 (124,457) Opendoor (OPEN) (7,691) (143,361) SmartRent (SMRT) 1,305 (44,363) Sonder (SOND) (320) (506) Sunnova (NOVA) (24,466) (75,041) Lennar Other unrealized losses from technology investments $ (23,954) (395,170) |
Investments in Unconsolidated E
Investments in Unconsolidated Entities | 3 Months Ended |
Feb. 28, 2023 | |
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: (In thousands) February 28, 2023 November 30, 2022 Investments in unconsolidated entities (1) (2) $ 1,178,802 1,173,164 Underlying equity in unconsolidated entities' net assets (1) 1,524,006 1,504,315 (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 February 28, 2023 and November 30, 2022, the carrying amount of the Company's investment was $395.3 million and $382.9 million, respectively. As of February 28, 2023 and November 30, 2022, the Homebuilding segment's unconsolidated entities had non-recourse debt with completion guarantees of $340.2 million and $333.6 million, respectively. The Company has an immaterial amount of recourse exposure to debt of the Homebuilding unconsolidated entities in which it has investments. While the Company sometimes guarantees debt of unconsolidated entities, in most instances the Company’s partners have also guaranteed that debt and are required to contribute their shares of any payments. In most instances, the amount of guaranteed debt of an unconsolidated entity is less than the value of the collateral securing it. As of both February 28, 2023 and November 30, 2022, the fair values of the repayment guarantees, maintenance guarantees, and completion guarantees were not material. The Company believes that as of February 28, 2023, 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 7 of the Notes to Condensed Consolidated Financial Statements). The details related to these are unchanged from the disclosure in the Company's Notes to the Financial Statements section in its Form 10-K for the year ended November 30, 2022. In 2021, the Company formed the Upward America Venture LP ("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 people who will live in them. Upward America has raised equity commitments totaling $1.6 billion. The commitments are primarily from institutional investors, including $125 million committed by Lennar. As of February 28, 2023 and November 30, 2022, the carrying amount of the Company's investment in Upward America was $34.3 million and $37.7 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. The details related to these are unchanged from the disclosure in the Company's Notes to the Financial Statements section in its Form 10-K for the year ended November 30, 2022. As of both February 28, 2023 and November 30, 2022, the fair value of the completion guarantees was immaterial. As of February 28, 2023 and November 30, 2022, Multifamily segment's unconsolidated entities had non-recourse debt with completion guarantees of $1.2 billion and $1.0 billion, respectively. In many instances, the Multifamily segment is appointed as the construction, development and property manager for its Multifamily unconsolidated entities and receives fees for performing this function. The Multifamily segment also provides general contractor services for construction of some of the rental properties owned by unconsolidated entities in which the Company has investments. The details of the activity were as follows: Three Months Ended February 28, (In thousands) 2023 2022 General contractor services, net of deferrals $ 125,402 117,263 General contractor costs 120,733 113,233 Land sales to joint ventures — 131,553 Management fee income, net of deferrals 18,121 13,127 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. The Multifamily segment completed the initial closing of the Fund. The Multifamily segment expects the Fund to have almost $1 billion in equity and Lennar's ownership percentage in the Fund is 4%. The Company currently has a $20.3 million investment in the Fund. Additional dollars will be committed as opportunities are identified by the Fund Details of LMV I and LMV II as of and during the three months ended February 28, 2023 are included below: February 28, 2023 (In thousands) LMV I LMV II Lennar's carrying value of investments $ 211,275 290,766 Equity commitments 2,204,016 1,257,700 Equity commitments called 2,154,328 1,141,649 Lennar's equity commitments 504,016 381,000 Lennar's equity commitments called 500,381 366,804 Lennar's remaining commitments (1) 3,635 14,196 Distributions to Lennar during the three months ended February 28, 2023 — — (1) While there are remaining commitments with LMV I, there are no plans for additional capital calls. 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 $177.7 million and $185.1 million as of February 28, 2023 and November 30, 2022, respectively. In addition, the Company is entitled to a portion of the carried interest distributions by those funds. The Company also had strategic technology investments in unconsolidated entities and investment funds of $137.9 million and $131.5 million, as of February 28, 2023 and November 30, 2022, respectively. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Feb. 28, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity The following tables reflect the changes in equity attributable to both Lennar Corporation and the noncontrolling interests of its consolidated subsidiaries in which it has less than a 100% ownership interest for the three months ended February 28, 2023 and 2022: Three Months Ended February 28, 2023 (In thousands) Total Class A Class B Additional Treasury Accumulated Other Comprehensive Income Retained Noncontrolling Balance at November 30, 2022 $ 24,240,367 25,608 3,660 5,417,796 (210,389) 2,408 18,861,417 139,867 Net earnings (including net earnings attributable to noncontrolling interests) 599,308 — — — — — 596,534 2,774 Employee stock and directors plans (66,990) 226 — (189) (67,027) — — — Purchases of treasury stock (190,931) — — — (190,931) — — — Amortization of restricted stock 86,558 — — 86,558 — — — — Cash dividends (107,891) — — — — — (107,891) — Receipts related to noncontrolling interests 2,497 — — — — — — 2,497 Payments related to noncontrolling interests (21,256) — — — — — — (21,256) Non-cash purchase or activity of noncontrolling interests, net 12,774 — — (376) — — — 13,150 Total other comprehensive income, net of tax 851 — — — — 851 — — Balance at February 28, 2023 $ 24,555,287 25,834 3,660 5,503,789 (468,347) 3,259 19,350,060 137,032 Three Months Ended February 28, 2022 (In thousands) Total Class A Class B Additional Treasury Accumulated Other Comprehensive Income (Loss) Retained Noncontrolling Balance at November 30, 2021 $ 20,996,282 30,050 3,944 8,807,891 (2,709,448) (1,341) 14,685,329 179,857 Net earnings (including net earnings attributable to noncontrolling interests) 509,315 — — — — — 503,581 5,734 Employee stock and directors plans (54,886) 193 — (140) (54,939) — — — Purchases of treasury stock (526,361) — — — (526,361) — — — Amortization of restricted stock 81,457 — — 81,457 — — — — Cash dividends (110,122) — — — — — (110,122) — Receipts related to noncontrolling interests 6,984 — — — — — — 6,984 Payments related to noncontrolling interests (59,388) — — — — — — (59,388) Non-cash purchase or activity of noncontrolling interests, net 1,124 — — (34,057) — — — 35,181 Total other comprehensive income, net of tax 3,027 — — — — 3,027 — — Balance at February 28, 2022 $ 20,847,432 30,243 3,944 8,855,151 (3,290,748) 1,686 15,078,788 168,368 On February 10, 2023, the Company paid cash dividends of $0.375 per share on both its Class A and Class B common stock to holders of record at the close of business on January 27, 2023, as declared by its Board of Directors on January 12, 2023. The Company approved and paid cash dividends of $0.375 per share for each of the four quarters of 2022 on both its Class A and Class B common stock. In March 2022, the Company's Board of Directors approved an authorization for the Company to repurchase up to the lesser of $2 billion in value, or 30 million in shares, of its outstanding Class A or Class B common stock. The repurchase authorization has no expiration date. The authorization was in addition to what was remaining of the October 2021 stock repurchase program. The following table represents the repurchases of the Company's Class A and Class B common stock under the authorized repurchase programs: Three Months Ended February 28, 2023 2022 (Dollars in thousands, except price per share) Class A Class B Class A Class B Shares repurchased 1,446,205 553,795 4,616,000 652,000 Total purchase price $ 143,068 $ 46,105 $ 472,924 $ 53,331 Average price per share $ 98.93 $ 83.25 $ 102.45 $ 81.80 |
Income Taxes
Income Taxes | 3 Months Ended |
Feb. 28, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes and effective tax rate were as follows: Three Months Ended February 28, (Dollars in thousands) 2023 2022 Provision for income taxes $185,145 167,420 Effective tax rate (1) 23.7% 25.0% |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Feb. 28, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net earnings attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. All outstanding nonvested shares that contain non-forfeitable rights to dividends or dividend equivalents that participate in undistributed earnings with common stock are considered participating securities and are included in computing earnings per share pursuant to the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating securities according to dividends or dividend equivalents and participation rights in undistributed earnings. The Company’s restricted common stock ("nonvested shares") is considered participating securities. Basic and diluted earnings per share were calculated as follows: Three Months Ended February 28, (In thousands, except per share amounts) 2023 2022 Numerator: Net earnings attributable to Lennar $ 596,534 503,581 Less: distributed earnings allocated to nonvested shares 724 780 Less: undistributed earnings allocated to nonvested shares 5,895 4,548 Numerator for basic earnings per share 589,915 498,253 Less: net amount attributable to Rialto's Carried Interest Incentive Plan (1) 1,038 1,798 Numerator for diluted earnings per share $ 588,877 496,455 Denominator: Denominator for basic earnings per share - weighted average common shares outstanding 286,074 293,930 Denominator for diluted earnings per share - weighted average common shares outstanding 286,074 293,930 Basic earnings per share $ 2.06 1.70 Diluted earnings per share $ 2.06 1.69 (1) The amounts presented relate to Rialto's Carried Interest Incentive Plan and represent the difference between the advanced tax distributions received from the Rialto funds included in the Lennar Other segment and the amount Lennar is assumed to own. For both the three months ended February 28, 2023 and 2022, there were no options to purchase shares of common stock that were outstanding and anti-dilutive. |
Homebuilding Senior Notes and O
Homebuilding Senior Notes and Other Debts Payable | 3 Months Ended |
Feb. 28, 2023 | |
Debt Disclosure [Abstract] | |
Homebuilding Senior Notes and Other Debts Payable | Homebuilding Senior Notes and Other Debts Payable (Dollars in thousands) February 28, 2023 November 30, 2022 4.875% senior notes due December 2023 $ 399,369 399,169 4.50% senior notes due 2024 649,156 648,975 5.875% senior notes due 2024 432,961 434,128 4.75% senior notes due 2025 499,003 498,892 5.25% senior notes due 2026 403,953 404,257 5.00% senior notes due 2027 351,645 351,741 4.75% senior notes due 2027 896,446 896,259 Mortgage notes on land and other debt 400,802 413,873 $ 4,033,335 4,047,294 The carrying amounts of the senior notes in the table above are net of debt issuance costs of $6.9 million and $7.6 million as of February 28, 2023 and November 30, 2022, respectively. The maximum available borrowings on the Company's unsecured revolving credit facility (the "Credit Facility") were as follows: (In thousands) February 28, 2023 Commitment - maturing in April 2024 $ 350,000 Commitment - maturing in May 2027 2,225,000 Total commitment $ 2,575,000 Accordion feature 425,000 Total maximum borrowings capacity $ 3,000,000 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. The maturity, debt covenants and details of the Credit Facility are unchanged from the disclosure in the Company's Financial Condition and Capital Resources section in its Form 10-K for the year ended November 30, 2022. In addition to the Credit Facility, the Company has other letter of credit facilities with different financial institutions. The Company's processes for posting performance and financial letters of credit and surety bonds are unchanged from the disclosure in the Company's Financial Condition and Capital Resources section in its Form 10-K for the year ended November 30, 2022. The Company's outstanding performance letters of credit and surety bonds are disclosed below: (In thousands) February 28, 2023 November 30, 2022 Performance letters of credit $ 1,236,516 1,259,033 Financial letters of credit 457,117 503,659 Surety bonds 4,166,287 4,136,715 Anticipated future costs primarily for site improvements related to performance surety bonds 2,288,199 2,273,694 |
Product Warranty
Product Warranty | 3 Months Ended |
Feb. 28, 2023 | |
Product Warranties Disclosures [Abstract] | |
Product Warranty | Product Warranty Warranty and similar reserves for homes are established at an amount estimated to be adequate to cover potential costs for materials and labor with regard to warranty-type claims expected to be incurred subsequent to the delivery of a home. Reserves are determined based on historical data and trends with respect to similar product types and geographical areas. The activity in the Company’s warranty reserve, which is included in Homebuilding other liabilities, was as follows: Three Months Ended February 28, (In thousands) 2023 2022 Warranty reserve, beginning of the period $ 418,017 377,021 Warranties issued 53,679 49,192 Adjustments to pre-existing warranties from changes in estimates (1) (4,058) 4,724 Payments (64,304) (56,791) Warranty reserve, end of period $ 403,334 374,146 (1) The adjustments to pre-existing warranties from changes in estimates during the three months ended February 28, 2023 and 2022 primarily related to specific claims in certain of the Company's homebuilding communities and other adjustments. |
Financial Instruments and Fair
Financial Instruments and Fair Value Disclosures | 3 Months Ended |
Feb. 28, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Disclosures | Financial Instruments and Fair Value Disclosures The following table presents the carrying amounts and estimated fair values of financial instruments held or issued by the Company at February 28, 2023 and November 30, 2022, using available market information and what the Company believes to be appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies might have a material effect on the estimated fair value amounts. The table excludes cash and cash equivalents, restricted cash, receivables, net and accounts payable, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments. February 28, 2023 November 30, 2022 (In thousands) Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value ASSETS Financial Services: Loans held-for-investment, net Level 3 $ 45,327 45,334 45,636 45,647 Investments held-to-maturity Level 3 141,854 141,767 143,251 143,208 LIABILITIES Homebuilding senior notes and other debts payable, net Level 2 $ 4,033,335 3,958,592 4,047,294 3,993,242 Financial Services notes and other debts payable, net Level 2 1,171,638 1,172,302 2,135,093 2,135,797 Multifamily notes payable, net Level 2 16,828 16,828 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 Hierarchy Fair Value at (In thousands) February 28, 2023 November 30, 2022 Financial Services Assets: Residential loans held-for-sale Level 2 $ 1,207,631 1,750,712 LMF Commercial loans held-for-sale Level 3 25,835 25,599 Mortgage servicing rights Level 3 3,450 3,463 Forward options Level 1 $ 6,167 9,473 Lennar Other: Investments in equity securities Level 1 $ 189,324 212,981 Investments available-for-sale Level 3 36,332 35,482 Residential and LMF Commercial loans held-for-sale in the table above include: February 28, 2023 November 30, 2022 (In thousands) Aggregate Principal Balance Change in Fair Value Aggregate Principal Balance Change in Fair Value Residential loans held-for-sale $ 1,222,860 (15,229) 1,734,480 16,233 LMF Commercial loans held-for-sale 26,280 (445) 24,000 1,599 Financial Services residential loans held-for-sale - Fair value is based on independent quoted market prices, where available, or the prices for other mortgage whole loans with similar characteristics. The Company recognizes the fair value of its rights to service a mortgage loan as revenue upon entering into an interest rate lock loan commitment with a borrower. The fair value of these are included in Financial Services’ loans held-for-sale as of February 28, 2023 and November 30, 2022. 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 commercial loans held-for-sale is calculated from model-based techniques that use discounted cash flow assumptions and the Company’s own estimates of CMBS spreads, market interest rate movements and the underlying loan credit quality. The details and methods of the calculation are unchanged from the fair value disclosure in the Company's Notes to the Financial Statements section in its Form 10-K for the year ended November 30, 2022. These methods use unobservable inputs in estimating a discount rate that is used to assign a value to each loan. While the cash payments on the loans are contractual, the discount rate used and assumptions regarding the relative size of each class in the CMBS capital structure can significantly impact the valuation. Therefore, the estimates used could differ materially from the fair value determined when the loans are sold to a securitization trust. Mortgage servicing rights - Financial Services records mortgage servicing rights when it sells loans on a servicing-retained basis or through the acquisition or assumption of the right to service a financial asset. The fair value of the mortgage servicing rights is calculated using third-party valuations. The key assumptions, which are generally unobservable inputs, used in the valuation of the mortgage servicing rights include mortgage prepayment rates, discount rates and delinquency rates and are noted below: Unobservable inputs As of February 28, 2023 As of November 30, 2022 Mortgage prepayment rate 8% 8% Discount rate 13% 13% Delinquency rate 8% 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 condensed consolidated statements of operations and comprehensive income. Lennar Other investments available-for-sale - The fair value of investments available-for-sale is calculated from model-based techniques that use discounted cash flow assumptions and the Company’s own estimates of CMBS spreads, market interest rate movements and the underlying loan credit quality. Loan values are calculated by allocating the change in value of an assumed CMBS capital structure to each loan. The value of an assumed CMBS capital structure is calculated, generally, by discounting the cash flows associated with each CMBS class at market interest rates and at the Company’s own estimate of CMBS spreads. The changes in fair values for Level 1 and Level 2 financial instruments measured on a recurring basis are shown below by financial instrument and financial statement line item: Three Months Ended February 28, (In thousands) 2023 2022 Changes in fair value included in Financial Services revenues: Loans held-for-sale $ (31,462) (27,387) Mortgage loan commitments (48,844) 13,797 Forward contracts 91,509 9,900 Forward options (852) — Changes in fair value included in Lennar Other unrealized loss from technology investments: Investments in equity securities $ (23,954) (395,170) Changes in fair value included in other comprehensive income, net of tax: Lennar Other investments available-for-sale $ 851 742 Interest on Financial Services loans held-for-sale and LMF Commercial loans held-for-sale measured at fair value is calculated based on the interest rate of the loans and recorded as revenues in the Financial Services’ statement of operations. The following table represents the reconciliation of the beginning and ending balance for the Level 3 recurring fair value measurements in the Company's Financial Services segment: Three Months Ended February 28, 2023 2022 (In thousands) Mortgage servicing rights LMF Commercial loans held-for-sale Mortgage servicing rights LMF Commercial loans held-for-sale Beginning balance $ 3,463 25,599 2,492 68 Purchases/loan originations 51 79,480 82 264,845 Sales/loan originations sold, including those not settled — (77,200) — (178,082) Disposals/settlements (63) — (159) — Changes in fair value (1) (1) (445) 378 (590) Interest and principal paydowns — (1,599) — (446) Ending balance $ 3,450 25,835 2,793 85,795 (1) Changes in fair value for LMF Commercial loans held-for-sale and Financial Services mortgage servicing rights are included in Financial Services' revenues. The Company’s assets measured at fair value on a nonrecurring basis are those assets for which the Company has recorded valuation adjustments and write-offs. The fair values included in the table below represent only those assets whose carrying values were adjusted to fair value during the respective periods disclosed. The assets measured at fair value on a nonrecurring basis are summarized below: Three Months Ended February 28, 2023 2022 (In thousands) Fair Value Carrying Value Fair Value Total Losses, Net (1) Carrying Value Fair Value Total Losses, Net (1) Non-financial assets - Homebuilding: Finished homes and construction in progress (2) Level 3 $ 164,544 158,237 (6,307) 15,358 13,841 (1,517) Land and land under development (2) Level 3 39,616 23,142 (16,474) 20,752 10,760 (9,992) Other assets (3) Level 3 3,065 — (3,065) — — — (1) Represents losses due to valuation adjustments and deposit and pre-acquisition write-offs recorded during the respective periods. (2) Valuation adjustments for finished homes and construction in progress, and land and land under development were included in Homebuilding costs and expenses. During the three months ended February 28, 2023, total losses, net, for land and land underdevelopment included $14.5 million of deposit and pre-acquisition cost write-offs. (3) Valuation adjustments related to investments in unconsolidated entities were included in Homebuilding other income (expense), net in the Company's condensed consolidated statements of operations and comprehensive income for the three months ended February 28, 2023. Finished homes and construction in progress are included within inventories. Inventories are stated at cost unless the inventory within a community is determined to be impaired, in which case the impaired inventory is written down to fair value. The Company disclosed its accounting policy related to inventories and its review for indicators of impairment in the Summary of Significant Accounting Policies in its Form 10-K for the year ended November 30, 2022. 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. On a quarterly basis, the Company reviews its active communities for indicators of potential impairments. The table below summarizes communities reviewed for indicators of impairment and communities with valuation adjustments recorded: Communities with valuation adjustments At or for the Three Months Ended # of active communities # of communities with potential indicator of impairment # of communities Fair Value (in thousands) Valuation Adjustments (in thousands) February 28, 2023 1,210 27 — $ — $ — February 28, 2022 1,199 5 — — — |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Feb. 28, 2023 | |
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. Based on the Company's evaluation, there were no variable interest entities ("VIEs") that were consolidated or deconsolidated during the three months ended February 28, 2023. The carrying amount of the Company's consolidated VIEs' assets and non-recourse liabilities are disclosed in the footnote to the condensed consolidated balance sheets. A VIE’s assets can only be used to settle obligations of that VIE. The VIEs are not guarantors of the Company’s senior notes or other debts payable. The assets held by a VIE are usually a 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 VIE’s lenders. Other than debt guarantee agreements with 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 related estimated maximum exposure to loss were as follows: February 28, 2023 November 30, 2022 (In thousands) Investments in Lennar’s Maximum Investments in Lennar’s Maximum Homebuilding (1) $ 637,253 720,432 586,935 718,719 Multifamily (2) 384,537 403,752 607,484 633,934 Financial Services (3) 141,854 141,854 143,251 143,251 Lennar Other (4) 63,349 63,349 55,952 55,952 $ 1,226,993 1,329,387 1,393,622 1,551,856 (1) As of February 28, 2023 and November 30, 2022, the Company's 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 $68.6 million and $77.3 million, respectively, commitment to fund capital in Upward America. In addition, as of February 28, 2023, there was recourse debt of a VIE of $10.5 million and as of November 30, 2022, there was $52.7 million of receivables relating to a short-term loan and management fee owed to the Company by Upward America. (2) As of February 28, 2023 and November 30, 2022, the Company's 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 1 and LMV II in addition to the investment also included the remaining combined equity commitment of $14.2 million and $19.3 million as of February 28, 2023 and November 30, 2022, respectively, for future expenditures related to the construction and development of its projects. Decrease in exposure for the three months ended February 28, 2023 is primarily due to the removal of LMV I as the Fund does not expect to call for equity in the future. As a result, LMV I is not a VIE as of February 28, 2023. (3) As of February 28, 2023 and November 30, 2022, the Company's 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) As of February 28, 2023, the Company's 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 February 28, 2023 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 third party land holding companies in which the Company holds option contracts for land to determine whether they are VIEs and, if so, whether the Company is the primary beneficiary of certain of these land holding companies. 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 associated land holding company. Land under option included in consolidated inventory not owned which was consolidated as a result of the Company being deemed the primary beneficiary of land holding companies was immaterial as of February 28, 2023. Therefore, consolidated inventory not owned as of February 28, 2023 primarily consists of land related to land sale transactions that did not meet the criteria for revenue recognition and derecognition of land by the Company as a result of the Company maintaining an option to repurchase the land in the future. During the three months ended February 28, 2023, consolidated inventory not owned decreased by $107.8 million with a corresponding decrease to liabilities related to consolidated inventory not owned in the accompanying condensed consolidated balance sheet as of February 28, 2023. The decrease was primarily due to an increase in homesite takedowns in the quarter. To reflect the purchase price of the homesite takedowns, the Company had a net reclass related to option deposits from consolidated inventory not owned to finished homes and construction in progress in the accompanying condensed consolidated balance sheet as of February 28, 2023. The liabilities related to consolidated inventory not owned primarily represent the difference between the option exercise prices for the optioned land and the Company’s cash deposits. The Company's exposure to losses on its option contracts with third parties and unconsolidated entities were as follows: (Dollars in thousands) February 28, 2023 November 30, 2022 Non-refundable option deposits and pre-acquisition costs $ 1,992,028 1,990,946 Letters of credit in lieu of cash deposits under certain land and option contracts 140,002 163,942 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Feb. 28, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities The Company is party to various claims, legal actions and complaints relating to homes sold by the Company 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 condensed 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. 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) February 28, 2023 November 30, 2022 Right-of-use assets $ 143,457 149,966 Lease liabilities 152,157 158,832 Weighted-average remaining lease term (in years) 7.8 7.9 Weighted-average discount rate 3.1% 3.0% Future minimum payments under the noncancellable leases in effect at February 28, 2023 were as follows: (In thousands) Lease Payments 2023 $ 25,877 2024 28,766 2025 24,298 2026 18,948 2027 16,130 2027 and thereafter 56,957 Total future minimum lease payments (1) $ 170,976 Less: Interest (2) 18,819 Present value of lease liabilities (2) $ 152,157 (1) Total future minimum lease payments exclude variable lease costs of $22.7 million and short-term lease costs of $2.7 million. (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. The Company recognized the lease liabilities on its condensed consolidated balance sheets within accounts payable and other liabilities of the respective segments. The Company's rental expense on lease liabilities were as follows: Three Months Ended February 28, (In thousands) 2023 2022 Rental expense $ 26,904 25,641 On occasion, the Company may sublease rented space which is no longer used for the Company's operations. For both the three months ended February 28, 2023 and 2022, the Company had an immaterial amount of sublease income. |
Basis of Presentation (Policy)
Basis of Presentation (Policy) | 3 Months Ended |
Feb. 28, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. |
Basis of Consolidation | These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended November 30, 2022. The basis of consolidation is unchanged from the disclosure in the Company's Notes to Consolidated Financial Statements section in its Form 10-K for the year ended November 30, 2022. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for the fair presentation of the accompanying condensed consolidated financial statements have been made. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In 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, 2024, with earlier adoption permitted. In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform - Scope, ” which clarified the scope and application of the original guidance. In December 2022, the FASB issued ASU 2022-06, "Reference Rate Reform - Deferral of the Sunset Date of Topic 848," |
Operating and Reporting Segme_2
Operating and Reporting Segments (Tables) | 3 Months Ended |
Feb. 28, 2023 | |
Segment Reporting [Abstract] | |
Disclosure Of Financial Information Relating To Company's Operations | The assets and liabilities related to the Company’s segments were as follows: (In thousands) February 28, 2023 Assets: Homebuilding Financial Multifamily Lennar Total Cash and cash equivalents $ 4,057,956 163,000 15,075 6,825 4,242,856 Restricted cash 22,504 8,797 — — 31,301 Receivables, net (1) 559,939 329,331 110,696 — 999,966 Inventories 21,627,886 — 439,947 — 22,067,833 Loans held-for-sale (2) — 1,233,466 — — 1,233,466 Investments in equity securities (3) — — — 367,369 367,369 Investments available-for-sale (4) — — — 36,332 36,332 Loans held-for-investment, net — 45,327 — — 45,327 Investments held-to-maturity — 141,854 — — 141,854 Investments in unconsolidated entities 1,178,802 — 635,499 315,632 2,129,933 Goodwill 3,442,359 189,699 — — 3,632,058 Other assets 1,412,654 101,947 65,560 64,698 1,644,859 $ 32,302,100 2,213,421 1,266,777 790,856 36,573,154 Liabilities: Notes and other debts payable, net $ 4,033,335 1,171,638 16,828 — 5,221,801 Accounts payable and other liabilities 6,295,653 146,137 266,552 87,724 6,796,066 $ 10,328,988 1,317,775 283,380 87,724 12,017,867 (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-investment, 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 (1) Receivables, net for Financial Services primarily related to loans sold to investors for which the Company had not yet been paid as of February 28, 2023 and November 30, 2022, 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 without readily available fair values as of both February 28, 2023 and November 30, 2022, 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 on the condensed consolidated balance sheet. Financial information relating to the Company’s segments was as follows: Three Months Ended February 28, 2023 (In thousands) Homebuilding Financial Services Multifamily Lennar Other Corporate and Total Revenues $ 6,156,305 182,981 143,523 7,620 — 6,490,429 Operating earnings (loss) 906,839 78,737 (21,601) (39,757) — 924,218 Corporate general and administrative expenses — — — — 126,106 126,106 Charitable foundation contribution — — — — 13,659 13,659 Earnings (loss) before income taxes 906,839 78,737 (21,601) (39,757) (139,765) 784,453 Three Months Ended February 28, 2022 Revenues $ 5,752,205 176,701 267,359 7,251 — 6,203,516 Operating earnings (loss) 1,109,850 90,791 5,427 (403,134) — 802,934 Corporate general and administrative expenses — — — — 113,661 113,661 Charitable foundation contribution — — — — 12,538 12,538 Earnings (loss) before income taxes 1,109,850 90,791 5,427 (403,134) (126,199) 676,735 The assets related to the Company’s homebuilding segments were as follows: (In thousands) East Central Texas West Other Corporate and Unallocated Total Homebuilding February 28, 2023 $ 6,800,191 4,074,510 3,592,725 12,076,029 1,371,403 4,387,242 32,302,100 November 30, 2022 6,877,581 4,010,610 3,742,663 12,182,709 1,382,864 4,487,735 32,684,162 Financial information relating to the Company’s homebuilding segments was as follows: Three Months Ended February 28, 2023 (In thousands) East Central Texas West Other Total Homebuilding Revenues $ 1,875,977 1,048,007 1,022,052 2,205,061 5,208 6,156,305 Operating earnings (loss) 424,196 130,522 125,319 230,500 (3,698) 906,839 Three Months Ended February 28, 2022 Revenues $ 1,670,186 1,109,272 812,619 2,150,798 9,330 5,752,205 Operating earnings (loss) 351,995 152,078 171,312 441,448 (6,983) 1,109,850 |
Schedule of Line of Credit Facilities | At February 28, 2023, the Financial Services warehouse facilities were all 364-day repurchase facilities and were used to fund residential mortgages or commercial mortgages for LMF Commercial as follows: (In thousands) Maximum Aggregate Commitment Residential facilities maturing: May 2023 $ 200,000 August 2023 600,000 December 2023 500,000 Total - Residential facilities $ 1,300,000 LMF Commercial facilities maturing July 2023 $ 50,000 November 2023 100,000 December 2023 400,000 Total - LMF Commercial facilities $ 550,000 Total $ 1,850,000 Borrowings and collateral under the facilities and their prior year predecessors were as follows: (In thousands) February 28, 2023 November 30, 2022 Borrowings under the residential facilities $ 1,028,283 1,877,411 Collateral under the residential facilities 1,064,394 1,950,155 Borrowings under the LMF Commercial facilities 11,397 124,399 The maximum available borrowings on the Company's unsecured revolving credit facility (the "Credit Facility") were as follows: (In thousands) February 28, 2023 Commitment - maturing in April 2024 $ 350,000 Commitment - maturing in May 2027 2,225,000 Total commitment $ 2,575,000 Accordion feature 425,000 Total maximum borrowings capacity $ 3,000,000 (In thousands) February 28, 2023 November 30, 2022 Performance letters of credit $ 1,236,516 1,259,033 Financial letters of credit 457,117 503,659 Surety bonds 4,166,287 4,136,715 Anticipated future costs primarily for site improvements related to performance surety bonds 2,288,199 2,273,694 |
Schedule of Loans Held for Sale | LMF Commercial originated commercial loans as follows: Three Months Ended February 28, (Dollars in thousands) 2023 2022 Originations (1) $ 79,480 264,845 Sold 77,200 178,082 Securitizations 1 1 (1) During both the three months ended February 28, 2023 and 2022, all the commercial loans originated were recorded as loans held-for-sale, which are held at fair value. |
Schedule of Commercial Mortgage-Backed Securities | Details related to Financial Services' CMBS were as follows: (Dollars in thousands) February 28, 2023 November 30, 2022 Carrying value $ 141,854 143,251 Outstanding debt, net of debt issuance costs 131,959 133,283 Incurred interest rate 3.4% 3.4% |
Schedule of Fair Value Inputs for Commercial Mortgage-Backed Securities | February 28, 2023 Discount rates at purchase 6% — 84% Coupon rates 2.0% — 5.3% Distribution dates October 2027 — December 2028 Stated maturity dates October 2050 — December 2051 Unobservable inputs As of February 28, 2023 As of November 30, 2022 Mortgage prepayment rate 8% 8% Discount rate 13% 13% Delinquency rate 8% 7% |
Unrealized Gain (Loss) on Investments | The following is a detail of Lennar Other unrealized gains (loss) from mark-to-market adjustments on the Company's technology investments: Three Months Ended February 28, (In thousands) 2023 2022 Blend Labs (BLND) $ 586 (7,442) Hippo (HIPO) 6,632 (124,457) Opendoor (OPEN) (7,691) (143,361) SmartRent (SMRT) 1,305 (44,363) Sonder (SOND) (320) (506) Sunnova (NOVA) (24,466) (75,041) Lennar Other unrealized losses from technology investments $ (23,954) (395,170) |
Investments in Unconsolidated_2
Investments in Unconsolidated Entities (Tables) | 3 Months Ended |
Feb. 28, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Entities | The investments in the Company's Homebuilding unconsolidated entities were as follows: (In thousands) February 28, 2023 November 30, 2022 Investments in unconsolidated entities (1) (2) $ 1,178,802 1,173,164 Underlying equity in unconsolidated entities' net assets (1) 1,524,006 1,504,315 (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 February 28, 2023 and November 30, 2022, the carrying amount of the Company's investment was $395.3 million and $382.9 million, respectively. In many instances, the Multifamily segment is appointed as the construction, development and property manager for its Multifamily unconsolidated entities and receives fees for performing this function. The Multifamily segment also provides general contractor services for construction of some of the rental properties owned by unconsolidated entities in which the Company has investments. The details of the activity were as follows: Three Months Ended February 28, (In thousands) 2023 2022 General contractor services, net of deferrals $ 125,402 117,263 General contractor costs 120,733 113,233 Land sales to joint ventures — 131,553 Management fee income, net of deferrals 18,121 13,127 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. The Multifamily segment completed the initial closing of the Fund. The Multifamily segment expects the Fund to have almost $1 billion in equity and Lennar's ownership percentage in the Fund is 4%. The Company currently has a $20.3 million investment in the Fund. Additional dollars will be committed as opportunities are identified by the Fund Details of LMV I and LMV II as of and during the three months ended February 28, 2023 are included below: February 28, 2023 (In thousands) LMV I LMV II Lennar's carrying value of investments $ 211,275 290,766 Equity commitments 2,204,016 1,257,700 Equity commitments called 2,154,328 1,141,649 Lennar's equity commitments 504,016 381,000 Lennar's equity commitments called 500,381 366,804 Lennar's remaining commitments (1) 3,635 14,196 Distributions to Lennar during the three months ended February 28, 2023 — — |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Feb. 28, 2023 | |
Equity [Abstract] | |
Schedule of Changes in Equity | The following tables reflect the changes in equity attributable to both Lennar Corporation and the noncontrolling interests of its consolidated subsidiaries in which it has less than a 100% ownership interest for the three months ended February 28, 2023 and 2022: Three Months Ended February 28, 2023 (In thousands) Total Class A Class B Additional Treasury Accumulated Other Comprehensive Income Retained Noncontrolling Balance at November 30, 2022 $ 24,240,367 25,608 3,660 5,417,796 (210,389) 2,408 18,861,417 139,867 Net earnings (including net earnings attributable to noncontrolling interests) 599,308 — — — — — 596,534 2,774 Employee stock and directors plans (66,990) 226 — (189) (67,027) — — — Purchases of treasury stock (190,931) — — — (190,931) — — — Amortization of restricted stock 86,558 — — 86,558 — — — — Cash dividends (107,891) — — — — — (107,891) — Receipts related to noncontrolling interests 2,497 — — — — — — 2,497 Payments related to noncontrolling interests (21,256) — — — — — — (21,256) Non-cash purchase or activity of noncontrolling interests, net 12,774 — — (376) — — — 13,150 Total other comprehensive income, net of tax 851 — — — — 851 — — Balance at February 28, 2023 $ 24,555,287 25,834 3,660 5,503,789 (468,347) 3,259 19,350,060 137,032 Three Months Ended February 28, 2022 (In thousands) Total Class A Class B Additional Treasury Accumulated Other Comprehensive Income (Loss) Retained Noncontrolling Balance at November 30, 2021 $ 20,996,282 30,050 3,944 8,807,891 (2,709,448) (1,341) 14,685,329 179,857 Net earnings (including net earnings attributable to noncontrolling interests) 509,315 — — — — — 503,581 5,734 Employee stock and directors plans (54,886) 193 — (140) (54,939) — — — Purchases of treasury stock (526,361) — — — (526,361) — — — Amortization of restricted stock 81,457 — — 81,457 — — — — Cash dividends (110,122) — — — — — (110,122) — Receipts related to noncontrolling interests 6,984 — — — — — — 6,984 Payments related to noncontrolling interests (59,388) — — — — — — (59,388) Non-cash purchase or activity of noncontrolling interests, net 1,124 — — (34,057) — — — 35,181 Total other comprehensive income, net of tax 3,027 — — — — 3,027 — — Balance at February 28, 2022 $ 20,847,432 30,243 3,944 8,855,151 (3,290,748) 1,686 15,078,788 168,368 Three Months Ended February 28, 2023 2022 (Dollars in thousands, except price per share) Class A Class B Class A Class B Shares repurchased 1,446,205 553,795 4,616,000 652,000 Total purchase price $ 143,068 $ 46,105 $ 472,924 $ 53,331 Average price per share $ 98.93 $ 83.25 $ 102.45 $ 81.80 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Feb. 28, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Benefit (Provision) and Effective Tax Rate | The provision for income taxes and effective tax rate were as follows: Three Months Ended February 28, (Dollars in thousands) 2023 2022 Provision for income taxes $185,145 167,420 Effective tax rate (1) 23.7% 25.0% |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Feb. 28, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator In Earnings Per Share | Basic and diluted earnings per share were calculated as follows: Three Months Ended February 28, (In thousands, except per share amounts) 2023 2022 Numerator: Net earnings attributable to Lennar $ 596,534 503,581 Less: distributed earnings allocated to nonvested shares 724 780 Less: undistributed earnings allocated to nonvested shares 5,895 4,548 Numerator for basic earnings per share 589,915 498,253 Less: net amount attributable to Rialto's Carried Interest Incentive Plan (1) 1,038 1,798 Numerator for diluted earnings per share $ 588,877 496,455 Denominator: Denominator for basic earnings per share - weighted average common shares outstanding 286,074 293,930 Denominator for diluted earnings per share - weighted average common shares outstanding 286,074 293,930 Basic earnings per share $ 2.06 1.70 Diluted earnings per share $ 2.06 1.69 (1) The amounts presented relate to Rialto's Carried Interest Incentive Plan and represent the difference between the advanced tax distributions received from the Rialto funds included in the Lennar Other segment and the amount Lennar is assumed to own. |
Homebuilding Senior Notes and_2
Homebuilding Senior Notes and Other Debts Payable (Tables) | 3 Months Ended |
Feb. 28, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Senior Notes and Other Debts Payable | (Dollars in thousands) February 28, 2023 November 30, 2022 4.875% senior notes due December 2023 $ 399,369 399,169 4.50% senior notes due 2024 649,156 648,975 5.875% senior notes due 2024 432,961 434,128 4.75% senior notes due 2025 499,003 498,892 5.25% senior notes due 2026 403,953 404,257 5.00% senior notes due 2027 351,645 351,741 4.75% senior notes due 2027 896,446 896,259 Mortgage notes on land and other debt 400,802 413,873 $ 4,033,335 4,047,294 |
Schedule of Letter of Credit Facilities | At February 28, 2023, the Financial Services warehouse facilities were all 364-day repurchase facilities and were used to fund residential mortgages or commercial mortgages for LMF Commercial as follows: (In thousands) Maximum Aggregate Commitment Residential facilities maturing: May 2023 $ 200,000 August 2023 600,000 December 2023 500,000 Total - Residential facilities $ 1,300,000 LMF Commercial facilities maturing July 2023 $ 50,000 November 2023 100,000 December 2023 400,000 Total - LMF Commercial facilities $ 550,000 Total $ 1,850,000 Borrowings and collateral under the facilities and their prior year predecessors were as follows: (In thousands) February 28, 2023 November 30, 2022 Borrowings under the residential facilities $ 1,028,283 1,877,411 Collateral under the residential facilities 1,064,394 1,950,155 Borrowings under the LMF Commercial facilities 11,397 124,399 The maximum available borrowings on the Company's unsecured revolving credit facility (the "Credit Facility") were as follows: (In thousands) February 28, 2023 Commitment - maturing in April 2024 $ 350,000 Commitment - maturing in May 2027 2,225,000 Total commitment $ 2,575,000 Accordion feature 425,000 Total maximum borrowings capacity $ 3,000,000 (In thousands) February 28, 2023 November 30, 2022 Performance letters of credit $ 1,236,516 1,259,033 Financial letters of credit 457,117 503,659 Surety bonds 4,166,287 4,136,715 Anticipated future costs primarily for site improvements related to performance surety bonds 2,288,199 2,273,694 |
Product Warranty (Tables)
Product Warranty (Tables) | 3 Months Ended |
Feb. 28, 2023 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Reserve | The activity in the Company’s warranty reserve, which is included in Homebuilding other liabilities, was as follows: Three Months Ended February 28, (In thousands) 2023 2022 Warranty reserve, beginning of the period $ 418,017 377,021 Warranties issued 53,679 49,192 Adjustments to pre-existing warranties from changes in estimates (1) (4,058) 4,724 Payments (64,304) (56,791) Warranty reserve, end of period $ 403,334 374,146 (1) The adjustments to pre-existing warranties from changes in estimates during the three months ended February 28, 2023 and 2022 primarily related to specific claims in certain of the Company's homebuilding communities and other adjustments. |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Disclosures (Tables) | 3 Months Ended |
Feb. 28, 2023 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts And Estimated Fair Value Of Financial Instruments | The following table presents the carrying amounts and estimated fair values of financial instruments held or issued by the Company at February 28, 2023 and November 30, 2022, using available market information and what the Company believes to be appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies might have a material effect on the estimated fair value amounts. The table excludes cash and cash equivalents, restricted cash, receivables, net and accounts payable, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments. February 28, 2023 November 30, 2022 (In thousands) Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value ASSETS Financial Services: Loans held-for-investment, net Level 3 $ 45,327 45,334 45,636 45,647 Investments held-to-maturity Level 3 141,854 141,767 143,251 143,208 LIABILITIES Homebuilding senior notes and other debts payable, net Level 2 $ 4,033,335 3,958,592 4,047,294 3,993,242 Financial Services notes and other debts payable, net Level 2 1,171,638 1,172,302 2,135,093 2,135,797 Multifamily notes payable, net Level 2 16,828 16,828 16,749 16,749 |
Fair Value Measured On Recurring Basis | The Company’s financial instruments measured at fair value on a recurring basis are summarized below: Fair Value Hierarchy Fair Value at (In thousands) February 28, 2023 November 30, 2022 Financial Services Assets: Residential loans held-for-sale Level 2 $ 1,207,631 1,750,712 LMF Commercial loans held-for-sale Level 3 25,835 25,599 Mortgage servicing rights Level 3 3,450 3,463 Forward options Level 1 $ 6,167 9,473 Lennar Other: Investments in equity securities Level 1 $ 189,324 212,981 Investments available-for-sale Level 3 36,332 35,482 Residential and LMF Commercial loans held-for-sale in the table above include: February 28, 2023 November 30, 2022 (In thousands) Aggregate Principal Balance Change in Fair Value Aggregate Principal Balance Change in Fair Value Residential loans held-for-sale $ 1,222,860 (15,229) 1,734,480 16,233 LMF Commercial loans held-for-sale 26,280 (445) 24,000 1,599 |
Schedule of Unobservable Inputs Used in Discounted Cash Flow Model to Determine the Fair Value of Communities | February 28, 2023 Discount rates at purchase 6% — 84% Coupon rates 2.0% — 5.3% Distribution dates October 2027 — December 2028 Stated maturity dates October 2050 — December 2051 Unobservable inputs As of February 28, 2023 As of November 30, 2022 Mortgage prepayment rate 8% 8% Discount rate 13% 13% Delinquency rate 8% 7% |
Schedule Of Gains And Losses Of Financial Instruments Measured on a Recurring Basis | The changes in fair values for Level 1 and Level 2 financial instruments measured on a recurring basis are shown below by financial instrument and financial statement line item: Three Months Ended February 28, (In thousands) 2023 2022 Changes in fair value included in Financial Services revenues: Loans held-for-sale $ (31,462) (27,387) Mortgage loan commitments (48,844) 13,797 Forward contracts 91,509 9,900 Forward options (852) — Changes in fair value included in Lennar Other unrealized loss from technology investments: Investments in equity securities $ (23,954) (395,170) Changes in fair value included in other comprehensive income, net of tax: Lennar Other investments available-for-sale $ 851 742 |
Reconciliation Of Beginning And Ending Balance For The Company's Level 3 Recurring Fair Value Measurements | The following table represents the reconciliation of the beginning and ending balance for the Level 3 recurring fair value measurements in the Company's Financial Services segment: Three Months Ended February 28, 2023 2022 (In thousands) Mortgage servicing rights LMF Commercial loans held-for-sale Mortgage servicing rights LMF Commercial loans held-for-sale Beginning balance $ 3,463 25,599 2,492 68 Purchases/loan originations 51 79,480 82 264,845 Sales/loan originations sold, including those not settled — (77,200) — (178,082) Disposals/settlements (63) — (159) — Changes in fair value (1) (1) (445) 378 (590) Interest and principal paydowns — (1,599) — (446) Ending balance $ 3,450 25,835 2,793 85,795 (1) Changes in fair value for LMF Commercial loans held-for-sale and Financial Services mortgage servicing rights are included in Financial Services' revenues. |
Fair Value Measurements, Nonrecurring | The assets measured at fair value on a nonrecurring basis are summarized below: Three Months Ended February 28, 2023 2022 (In thousands) Fair Value Carrying Value Fair Value Total Losses, Net (1) Carrying Value Fair Value Total Losses, Net (1) Non-financial assets - Homebuilding: Finished homes and construction in progress (2) Level 3 $ 164,544 158,237 (6,307) 15,358 13,841 (1,517) Land and land under development (2) Level 3 39,616 23,142 (16,474) 20,752 10,760 (9,992) Other assets (3) Level 3 3,065 — (3,065) — — — (1) Represents losses due to valuation adjustments and deposit and pre-acquisition write-offs recorded during the respective periods. (2) Valuation adjustments for finished homes and construction in progress, and land and land under development were included in Homebuilding costs and expenses. During the three months ended February 28, 2023, total losses, net, for land and land underdevelopment included $14.5 million of deposit and pre-acquisition cost write-offs. (3) Valuation adjustments related to investments in unconsolidated entities were included in Homebuilding other income (expense), net in the Company's condensed consolidated statements of operations and comprehensive income for the three months ended February 28, 2023. Communities with valuation adjustments At or for the Three Months Ended # of active communities # of communities with potential indicator of impairment # of communities Fair Value (in thousands) Valuation Adjustments (in thousands) February 28, 2023 1,210 27 — $ — $ — February 28, 2022 1,199 5 — — — |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Feb. 28, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Estimated Maximum Exposure To Loss | The Company’s recorded investments in VIEs that are unconsolidated and related estimated maximum exposure to loss were as follows: February 28, 2023 November 30, 2022 (In thousands) Investments in Lennar’s Maximum Investments in Lennar’s Maximum Homebuilding (1) $ 637,253 720,432 586,935 718,719 Multifamily (2) 384,537 403,752 607,484 633,934 Financial Services (3) 141,854 141,854 143,251 143,251 Lennar Other (4) 63,349 63,349 55,952 55,952 $ 1,226,993 1,329,387 1,393,622 1,551,856 (1) As of February 28, 2023 and November 30, 2022, the Company's 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 $68.6 million and $77.3 million, respectively, commitment to fund capital in Upward America. In addition, as of February 28, 2023, there was recourse debt of a VIE of $10.5 million and as of November 30, 2022, there was $52.7 million of receivables relating to a short-term loan and management fee owed to the Company by Upward America. (2) As of February 28, 2023 and November 30, 2022, the Company's 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 1 and LMV II in addition to the investment also included the remaining combined equity commitment of $14.2 million and $19.3 million as of February 28, 2023 and November 30, 2022, respectively, for future expenditures related to the construction and development of its projects. Decrease in exposure for the three months ended February 28, 2023 is primarily due to the removal of LMV I as the Fund does not expect to call for equity in the future. As a result, LMV I is not a VIE as of February 28, 2023. (3) As of February 28, 2023 and November 30, 2022, the Company's 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) As of February 28, 2023, the Company's 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: (Dollars in thousands) February 28, 2023 November 30, 2022 Non-refundable option deposits and pre-acquisition costs $ 1,992,028 1,990,946 Letters of credit in lieu of cash deposits under certain land and option contracts 140,002 163,942 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Feb. 28, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Additional Information About Leases | The following table includes additional information about the Company's leases: (Dollars in thousands) February 28, 2023 November 30, 2022 Right-of-use assets $ 143,457 149,966 Lease liabilities 152,157 158,832 Weighted-average remaining lease term (in years) 7.8 7.9 Weighted-average discount rate 3.1% 3.0% |
Future Minimum Payments Under Noncancellable Leases | Future minimum payments under the noncancellable leases in effect at February 28, 2023 were as follows: (In thousands) Lease Payments 2023 $ 25,877 2024 28,766 2025 24,298 2026 18,948 2027 16,130 2027 and thereafter 56,957 Total future minimum lease payments (1) $ 170,976 Less: Interest (2) 18,819 Present value of lease liabilities (2) $ 152,157 (1) Total future minimum lease payments exclude variable lease costs of $22.7 million and short-term lease costs of $2.7 million. (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. The Company recognized the lease liabilities on its condensed consolidated balance sheets within accounts payable and other liabilities of the respective segments. |
Lease, Cost | The Company's rental expense on lease liabilities were as follows: Three Months Ended February 28, (In thousands) 2023 2022 Rental expense $ 26,904 25,641 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Nov. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash and cash equivalents held in escrow | $ 488 | $ 1,000 | |
Cash and cash equivalents held in escrow, deposit period | 2 days | ||
Nonvested shares granted (in shares) | 1.6 | 1.4 |
Operating and Reporting Segme_3
Operating and Reporting Segments (Disclosure Of Assets and Liabilities) (Details) - USD ($) $ in Thousands | Feb. 28, 2023 | Nov. 30, 2022 | Feb. 28, 2022 | |||
Segment Reporting Information [Line Items] | ||||||
Total assets | [1] | $ 36,573,154 | $ 37,984,295 | |||
Total liabilities | [2] | 12,017,867 | 13,743,928 | |||
Equity securities without readily determinable fair values | 178,000 | 178,000 | ||||
Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Cash and cash equivalents | 4,242,856 | 4,778,720 | ||||
Restricted cash | 31,301 | 37,050 | ||||
Receivables, net | 999,966 | 1,614,277 | ||||
Inventories | 22,067,833 | 21,862,453 | ||||
Loans held-for-sale | 1,233,466 | 1,776,311 | ||||
Investments in equity securities | 367,369 | 391,026 | ||||
Investments available-for-sale | 36,332 | 35,482 | ||||
Loans held-for-investment, net | 45,327 | 45,636 | ||||
Debt Securities, Held-to-maturity | 141,854 | 143,251 | ||||
Investments in unconsolidated entities | 2,129,933 | 2,137,813 | ||||
Goodwill | 3,632,058 | 3,632,058 | ||||
Other assets | 1,644,859 | 1,530,218 | ||||
Total assets | 36,573,154 | 37,984,295 | ||||
Senior notes and other debts payable, net | 5,221,801 | 6,199,136 | ||||
Accounts payable and other liabilities | 6,796,066 | 7,544,792 | ||||
Total liabilities | 12,017,867 | 13,743,928 | ||||
Homebuilding | ||||||
Segment Reporting Information [Line Items] | ||||||
Inventories | [1] | 21,627,886 | 21,432,011 | |||
Investments in unconsolidated entities | [1] | 1,178,802 | 1,173,164 | |||
Goodwill | [1] | 3,442,359 | 3,442,359 | |||
Other assets | [1] | 1,412,654 | 1,323,478 | |||
Total assets | [1] | 32,302,100 | 32,684,162 | |||
Senior notes and other debts payable, net | [2] | 4,033,335 | 4,047,294 | |||
Total liabilities | [2] | 10,328,988 | 10,978,646 | |||
Homebuilding | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Cash and cash equivalents | 4,057,956 | [1] | 4,616,124 | [1] | $ 1,366,597 | |
Restricted cash | 22,504 | [1] | 23,046 | [1] | 27,025 | |
Receivables, net | [1] | 559,939 | 673,980 | |||
Inventories | 21,627,886 | 21,432,011 | ||||
Loans held-for-sale | 0 | 0 | ||||
Investments in equity securities | 0 | 0 | ||||
Investments available-for-sale | 0 | 0 | ||||
Loans held-for-investment, net | 0 | 0 | ||||
Debt Securities, Held-to-maturity | 0 | 0 | ||||
Investments in unconsolidated entities | 1,178,802 | 1,173,164 | ||||
Goodwill | 3,442,359 | 3,442,359 | ||||
Other assets | 1,412,654 | 1,323,478 | ||||
Total assets | 32,302,100 | 32,684,162 | ||||
Senior notes and other debts payable, net | 4,033,335 | 4,047,294 | ||||
Accounts payable and other liabilities | 6,295,653 | 6,931,352 | ||||
Total liabilities | 10,328,988 | 10,978,646 | ||||
Financial Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Total assets | [1] | 2,213,421 | 3,254,257 | |||
Total liabilities | [2] | 1,317,775 | 2,353,904 | |||
Financial Services | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Cash and cash equivalents | 163,000 | 139,378 | 168,032 | |||
Restricted cash | 8,797 | 14,004 | 6,724 | |||
Receivables, net | 329,331 | 826,163 | ||||
Inventories | 0 | 0 | ||||
Loans held-for-sale | 1,233,466 | 1,776,311 | ||||
Investments in equity securities | 0 | 0 | ||||
Investments available-for-sale | 0 | 0 | ||||
Loans held-for-investment, net | 45,327 | 45,636 | ||||
Debt Securities, Held-to-maturity | 141,854 | 143,251 | ||||
Investments in unconsolidated entities | 0 | 0 | ||||
Goodwill | 189,699 | 189,699 | ||||
Other assets | 101,947 | 119,815 | ||||
Total assets | 2,213,421 | 3,254,257 | ||||
Senior notes and other debts payable, net | 1,171,638 | 2,135,093 | ||||
Accounts payable and other liabilities | 146,137 | 218,811 | ||||
Total liabilities | 1,317,775 | 2,353,904 | ||||
Multifamily | ||||||
Segment Reporting Information [Line Items] | ||||||
Total assets | [1] | 1,266,777 | 1,257,337 | |||
Total liabilities | [2] | 283,380 | 313,484 | |||
Multifamily | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Cash and cash equivalents | 15,075 | 17,827 | 34,439 | |||
Restricted cash | 0 | 0 | ||||
Receivables, net | 110,696 | 114,134 | ||||
Inventories | 439,947 | 430,442 | ||||
Loans held-for-sale | 0 | 0 | ||||
Investments in equity securities | 0 | 0 | ||||
Investments available-for-sale | 0 | 0 | ||||
Loans held-for-investment, net | 0 | 0 | ||||
Debt Securities, Held-to-maturity | 0 | 0 | ||||
Investments in unconsolidated entities | 635,499 | 648,126 | ||||
Goodwill | 0 | 0 | ||||
Other assets | 65,560 | 46,808 | ||||
Total assets | 1,266,777 | 1,257,337 | ||||
Senior notes and other debts payable, net | 16,828 | 16,749 | ||||
Accounts payable and other liabilities | 266,552 | 296,735 | ||||
Total liabilities | 283,380 | 313,484 | ||||
Lennar Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Total assets | [1] | 790,856 | 788,539 | |||
Total liabilities | [2] | 87,724 | 97,894 | |||
Lennar Other | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Cash and cash equivalents | 6,825 | 5,391 | $ 2,757 | |||
Restricted cash | 0 | 0 | ||||
Receivables, net | 0 | 0 | ||||
Inventories | 0 | 0 | ||||
Loans held-for-sale | 0 | 0 | ||||
Investments in equity securities | 367,369 | 391,026 | ||||
Investments available-for-sale | 36,332 | 35,482 | ||||
Loans held-for-investment, net | 0 | 0 | ||||
Debt Securities, Held-to-maturity | 0 | 0 | ||||
Investments in unconsolidated entities | 315,632 | 316,523 | ||||
Goodwill | 0 | 0 | ||||
Other assets | 64,698 | 40,117 | ||||
Total assets | 790,856 | 788,539 | ||||
Senior notes and other debts payable, net | 0 | 0 | ||||
Accounts payable and other liabilities | 87,724 | 97,894 | ||||
Total liabilities | $ 87,724 | $ 97,894 | ||||
[1] Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations ("ASC 810"), the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities ("VIEs") and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations. As of February 28, 2023, total assets include $1.4 billion related to consolidated VIEs of which $31.1 million is included in Homebuilding cash and cash equivalents, $0.7 million in Homebuilding receivables, net, $59.0 million in Homebuilding finished homes and construction in progress, $742.4 million in Homebuilding land and land under development, $502.0 million in Homebuilding consolidated inventory not owned, $0.7 million in Homebuilding investments in unconsolidated entities, $21.1 million in Homebuilding other assets, $31.0 million in Multifamily assets and $6.8 million in Lennar Other assets. 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 $9.0 million in Lennar Other assets. |
Operating and Reporting Segme_4
Operating and Reporting Segments (Financial Information Related to Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Segment Reporting Information [Line Items] | ||
Earnings (loss) before income taxes | $ 784,453 | $ 676,735 |
Operating Segments And Corporate | ||
Segment Reporting Information [Line Items] | ||
Earnings (loss) before income taxes | 784,453 | 676,735 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 6,490,429 | 6,203,516 |
Operating earnings (loss) | 924,218 | 802,934 |
Operating Segments | Homebuilding | ||
Segment Reporting Information [Line Items] | ||
Revenues | 6,156,305 | 5,752,205 |
Operating earnings (loss) | 906,839 | 1,109,850 |
Earnings (loss) before income taxes | 906,839 | 1,109,850 |
Operating Segments | Financial Services | ||
Segment Reporting Information [Line Items] | ||
Revenues | 182,981 | 176,701 |
Operating earnings (loss) | 78,737 | 90,791 |
Earnings (loss) before income taxes | 78,737 | 90,791 |
Operating Segments | Multifamily | ||
Segment Reporting Information [Line Items] | ||
Revenues | 143,523 | 267,359 |
Operating earnings (loss) | (21,601) | 5,427 |
Earnings (loss) before income taxes | (21,601) | 5,427 |
Operating Segments | Lennar Other | ||
Segment Reporting Information [Line Items] | ||
Revenues | 7,620 | 7,251 |
Operating earnings (loss) | (39,757) | (403,134) |
Earnings (loss) before income taxes | (39,757) | (403,134) |
Corporate and Unallocated | ||
Segment Reporting Information [Line Items] | ||
Corporate general and administrative expenses | 126,106 | 113,661 |
Charitable foundation contribution | 13,659 | 12,538 |
Earnings (loss) before income taxes | $ (139,765) | $ (126,199) |
Operating and Reporting Segme_5
Operating and Reporting Segments (Homebuilding Assets) (Details) - USD ($) $ in Thousands | Feb. 28, 2023 | Nov. 30, 2022 | |
Segment Reporting Information [Line Items] | |||
Assets | [1] | $ 36,573,154 | $ 37,984,295 |
Homebuilding | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 32,302,100 | 32,684,162 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | 36,573,154 | 37,984,295 | |
Operating Segments | East | |||
Segment Reporting Information [Line Items] | |||
Assets | 6,800,191 | 6,877,581 | |
Operating Segments | Central | |||
Segment Reporting Information [Line Items] | |||
Assets | 4,074,510 | 4,010,610 | |
Operating Segments | Texas | |||
Segment Reporting Information [Line Items] | |||
Assets | 3,592,725 | 3,742,663 | |
Operating Segments | West | |||
Segment Reporting Information [Line Items] | |||
Assets | 12,076,029 | 12,182,709 | |
Operating Segments | Other | |||
Segment Reporting Information [Line Items] | |||
Assets | 1,371,403 | 1,382,864 | |
Operating Segments | Homebuilding | |||
Segment Reporting Information [Line Items] | |||
Assets | 32,302,100 | 32,684,162 | |
Corporate and Unallocated | |||
Segment Reporting Information [Line Items] | |||
Assets | 4,387,242 | 4,487,735 | |
Operating Segments And Corporate | Homebuilding | |||
Segment Reporting Information [Line Items] | |||
Assets | $ 32,302,100 | $ 32,684,162 | |
[1] Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations ("ASC 810"), the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities ("VIEs") and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations. As of February 28, 2023, total assets include $1.4 billion related to consolidated VIEs of which $31.1 million is included in Homebuilding cash and cash equivalents, $0.7 million in Homebuilding receivables, net, $59.0 million in Homebuilding finished homes and construction in progress, $742.4 million in Homebuilding land and land under development, $502.0 million in Homebuilding consolidated inventory not owned, $0.7 million in Homebuilding investments in unconsolidated entities, $21.1 million in Homebuilding other assets, $31.0 million in Multifamily assets and $6.8 million in Lennar Other assets. 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 $9.0 million in Lennar Other assets. |
Operating and Reporting Segme_6
Operating and Reporting Segments (Homebuilding Financial Information) (Details) - Operating Segments - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 6,490,429 | $ 6,203,516 |
Operating earnings (loss) | 924,218 | 802,934 |
Homebuilding | ||
Segment Reporting Information [Line Items] | ||
Revenues | 6,156,305 | 5,752,205 |
Operating earnings (loss) | 906,839 | 1,109,850 |
East | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,875,977 | 1,670,186 |
Operating earnings (loss) | 424,196 | 351,995 |
Central | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,048,007 | 1,109,272 |
Operating earnings (loss) | 130,522 | 152,078 |
Texas | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,022,052 | 812,619 |
Operating earnings (loss) | 125,319 | 171,312 |
West | ||
Segment Reporting Information [Line Items] | ||
Revenues | 2,205,061 | 2,150,798 |
Operating earnings (loss) | 230,500 | 441,448 |
Other | ||
Segment Reporting Information [Line Items] | ||
Revenues | 5,208 | 9,330 |
Operating earnings (loss) | $ (3,698) | $ (6,983) |
Operating and Reporting Segme_7
Operating and Reporting Segments (Disclosure of Facilities) (Details) - Financial Services - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2023 | Nov. 30, 2022 | |
Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 1,850,000 | |
Residential facilities | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 1,300,000 | |
Borrowings under facility | 1,028,283 | $ 1,877,411 |
Collateral under facilities | 1,064,394 | 1,950,155 |
May 2023 | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 200,000 | |
August 2023 | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 600,000 | |
December 2023 | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 500,000 | |
Commercial facilities | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 550,000 | |
July 2023 | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 50,000 | |
November 2023 | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 100,000 | |
December 2023 | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 400,000 | |
Warehouse Repurchase Facility | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Facility, term | 364 days | |
Warehouse Repurchase Facility | Commercial facilities | ||
Line of Credit Facility [Line Items] | ||
Borrowings under facility | $ 11,397 | $ 124,399 |
Operating and Reporting Segme_8
Operating and Reporting Segments (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Nov. 30, 2022 | |
Doma Holdings, Inc | |||
Segment Reporting Information [Line Items] | |||
Unconsolidated entities ownership percentage | 25% | ||
Financial Services | Loss origination liability | |||
Segment Reporting Information [Line Items] | |||
Loan origination liabilities | $ 12,100,000 | $ 11,800,000 | |
Financial Services | Warehouse Repurchase Facility | |||
Segment Reporting Information [Line Items] | |||
Collateral percentage | 80% | ||
CMBS | Financial Services | |||
Segment Reporting Information [Line Items] | |||
Impairment charges for CMBS securities | $ 0 | $ 0 |
Operating and Reporting Segme_9
Operating and Reporting Segments (Loans Held-for-Sale) (Details) - Financial Services $ in Thousands | 3 Months Ended | |
Feb. 28, 2023 USD ($) transaction | Feb. 28, 2022 USD ($) transaction | |
Segment Reporting Information [Line Items] | ||
Originations | $ 79,480 | $ 264,845 |
Sold | $ 77,200 | $ 178,082 |
Securitizations | transaction | 1 | 1 |
Operating and Reporting Segm_10
Operating and Reporting Segments (Commercial Mortgage-Backed Securities) (Details) - Financial Services - USD ($) $ in Thousands | Feb. 28, 2023 | Nov. 30, 2022 |
Financing Agreement to Purchase Commercial Mortgage Backed Securities | Secured Debt | ||
Segment Reporting Information [Line Items] | ||
Outstanding debt, net of debt issuance costs | $ 131,959 | $ 133,283 |
Incurred interest rate | 3.40% | 3.40% |
CMBS | ||
Segment Reporting Information [Line Items] | ||
Debt Securities, Held-to-maturity | $ 141,854 | $ 143,251 |
Operating and Reporting Segm_11
Operating and Reporting Segments (Fair Value Inputs for Commercial Mortgage-Backed Securities) (Details) - CMBS - Financial Services | 3 Months Ended |
Feb. 28, 2023 | |
Minimum | |
Segment Reporting Information [Line Items] | |
Discount rates at purchase | 6% |
Coupon rates | 2% |
Maximum | |
Segment Reporting Information [Line Items] | |
Discount rates at purchase | 84% |
Coupon rates | 5.30% |
Operating and Reporting Segm_12
Operating and Reporting Segments - Unrealized Gain (Loss) on Investments (Details) - Lennar Other - Operating Segments - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Segment Reporting Information [Line Items] | ||
Lennar Other unrealized loss from technology investments | $ (23,954) | $ (395,170) |
Blend Labs | ||
Segment Reporting Information [Line Items] | ||
Lennar Other unrealized loss from technology investments | 586 | (7,442) |
Hippo | ||
Segment Reporting Information [Line Items] | ||
Lennar Other unrealized loss from technology investments | 6,632 | (124,457) |
Opendoor | ||
Segment Reporting Information [Line Items] | ||
Lennar Other unrealized loss from technology investments | (7,691) | (143,361) |
SmartRent | ||
Segment Reporting Information [Line Items] | ||
Lennar Other unrealized loss from technology investments | 1,305 | (44,363) |
Sonder | ||
Segment Reporting Information [Line Items] | ||
Lennar Other unrealized loss from technology investments | (320) | (506) |
Sunnova | ||
Segment Reporting Information [Line Items] | ||
Lennar Other unrealized loss from technology investments | $ (24,466) | $ (75,041) |
Investments in Unconsolidated_3
Investments in Unconsolidated Entities (Homebuilding Unconsolidated Entities) (Details) - USD ($) $ in Thousands | Feb. 28, 2023 | Nov. 30, 2022 | |
FivePoint Unconsolidated Entity | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated entities | $ 395,300 | $ 382,900 | |
Unconsolidated entities ownership percentage | 40% | ||
Homebuilding | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated entities | [1] | $ 1,178,802 | 1,173,164 |
Underlying equity in unconsolidated partners' net assets | $ 1,524,006 | $ 1,504,315 | |
[1] Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations ("ASC 810"), the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities ("VIEs") and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations. As of February 28, 2023, total assets include $1.4 billion related to consolidated VIEs of which $31.1 million is included in Homebuilding cash and cash equivalents, $0.7 million in Homebuilding receivables, net, $59.0 million in Homebuilding finished homes and construction in progress, $742.4 million in Homebuilding land and land under development, $502.0 million in Homebuilding consolidated inventory not owned, $0.7 million in Homebuilding investments in unconsolidated entities, $21.1 million in Homebuilding other assets, $31.0 million in Multifamily assets and $6.8 million in Lennar Other assets. 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 $9.0 million in Lennar Other assets. |
Investments in Unconsolidated_4
Investments in Unconsolidated Entities (Narrative) (Details) - USD ($) $ in Thousands | Feb. 28, 2023 | Nov. 30, 2022 | |
Upward America Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Total equity commitments | $ 1,600,000 | ||
Upward America Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Total equity commitments | 125,000 | ||
Lennar's carrying value of investments | 34,300 | $ 37,700 | |
Homebuilding | |||
Schedule of Equity Method Investments [Line Items] | |||
Non-recourse debt with completion guarantees | 340,200 | 333,600 | |
Lennar's carrying value of investments | [1] | 1,178,802 | 1,173,164 |
Multifamily | |||
Schedule of Equity Method Investments [Line Items] | |||
Non-recourse debt with completion guarantees | 1,200,000 | 1,000,000 | |
Multifamily | Lennar Multifamily Fund | |||
Schedule of Equity Method Investments [Line Items] | |||
Total equity commitments | $ 1,000,000 | ||
Fund ownership percentage | 4% | ||
Lennar's carrying value of investments | $ 20,300 | ||
Lennar Other | Rialto Funds and Investment Vehicles | |||
Schedule of Equity Method Investments [Line Items] | |||
Lennar's carrying value of investments | 177,700 | 185,100 | |
Lennar Other | Strategic Technology Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Lennar's carrying value of investments | $ 137,900 | $ 131,500 | |
[1] Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations ("ASC 810"), the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities ("VIEs") and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations. As of February 28, 2023, total assets include $1.4 billion related to consolidated VIEs of which $31.1 million is included in Homebuilding cash and cash equivalents, $0.7 million in Homebuilding receivables, net, $59.0 million in Homebuilding finished homes and construction in progress, $742.4 million in Homebuilding land and land under development, $502.0 million in Homebuilding consolidated inventory not owned, $0.7 million in Homebuilding investments in unconsolidated entities, $21.1 million in Homebuilding other assets, $31.0 million in Multifamily assets and $6.8 million in Lennar Other assets. 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 $9.0 million in Lennar Other assets. |
Investments in Unconsolidated_5
Investments in Unconsolidated Entities (Multifamily Income and Costs) (Details) - Multifamily - Unconsolidated Entities - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
General Contractor Services | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenues | $ 125,402 | $ 117,263 |
Cost of revenue | 120,733 | 113,233 |
Land | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenues | 0 | 131,553 |
Management Fee | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenues | $ 18,121 | $ 13,127 |
Investments in Unconsolidated_6
Investments in Unconsolidated Entities (Details of Multifamily Unconsolidated Entities) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||
Distributions of earnings from unconsolidated entities | $ 4,623 | $ 4,822 |
Multifamily | LMV I | ||
Schedule of Equity Method Investments [Line Items] | ||
Lennar's carrying value of investments | 211,275 | |
Equity commitments | 2,204,016 | |
Equity commitments called | 2,154,328 | |
Lennar's equity commitments | 504,016 | |
Lennar's equity commitments called | 500,381 | |
Lennar's remaining commitments (1) | 3,635 | |
Distributions of earnings from unconsolidated entities | 0 | |
Multifamily | LMV II | ||
Schedule of Equity Method Investments [Line Items] | ||
Lennar's carrying value of investments | 290,766 | |
Equity commitments | 1,257,700 | |
Equity commitments called | 1,141,649 | |
Lennar's equity commitments | 381,000 | |
Lennar's equity commitments called | 366,804 | |
Lennar's remaining commitments (1) | 14,196 | |
Distributions of earnings from unconsolidated entities | $ 0 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule Of Changes In Equity) (Details) - USD ($) | 3 Months Ended | ||||||||
Feb. 10, 2023 | Feb. 28, 2023 | Nov. 30, 2022 | Aug. 31, 2022 | May 31, 2022 | Feb. 28, 2022 | Mar. 31, 2022 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance, beginning | $ 24,240,367,000 | [1] | $ 20,847,432,000 | $ 20,996,282,000 | |||||
Net earnings (including net earnings attributable to noncontrolling interests) | 599,308,000 | 509,315,000 | |||||||
Employee stock and directors plans | (66,990,000) | (54,886,000) | |||||||
Purchases of treasury stock | (190,931,000) | (526,361,000) | |||||||
Amortization of restricted stock | 86,558,000 | 81,457,000 | |||||||
Cash dividends | (107,891,000) | (110,122,000) | |||||||
Receipts related to noncontrolling interests | 2,497,000 | 6,984,000 | |||||||
Payments related to noncontrolling interests | (21,256,000) | (59,388,000) | |||||||
Non-cash purchase or activity of noncontrolling interests, net | 12,774,000 | 1,124,000 | |||||||
Total other comprehensive income, net of tax | 851,000 | 3,027,000 | |||||||
Balance, ending | 24,555,287,000 | [1] | $ 24,240,367,000 | [1] | $ 20,847,432,000 | ||||
Cash dividend paid (in dollars per share) | $ 0.375 | $ 0.375 | $ 0.375 | $ 0.375 | $ 0.375 | ||||
Stock repurchase program, authorized value | $ 2,000,000,000 | ||||||||
Stock repurchase program, authorized shares (in shares) | 30,000,000 | ||||||||
Additional Paid - in Capital | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance, beginning | 5,417,796,000 | $ 8,855,151,000 | $ 8,807,891,000 | ||||||
Employee stock and directors plans | (189,000) | (140,000) | |||||||
Amortization of restricted stock | 86,558,000 | 81,457,000 | |||||||
Non-cash purchase or activity of noncontrolling interests, net | (376,000) | (34,057,000) | |||||||
Balance, ending | 5,503,789,000 | $ 5,417,796,000 | 8,855,151,000 | ||||||
Treasury Stock | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance, beginning | (210,389,000) | (3,290,748,000) | (2,709,448,000) | ||||||
Employee stock and directors plans | (67,027,000) | (54,939,000) | |||||||
Purchases of treasury stock | (190,931,000) | (526,361,000) | |||||||
Balance, ending | (468,347,000) | (210,389,000) | (3,290,748,000) | ||||||
Accumulated Other Comprehensive Income | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance, beginning | 2,408,000 | 1,686,000 | (1,341,000) | ||||||
Total other comprehensive income, net of tax | 851,000 | 3,027,000 | |||||||
Balance, ending | 3,259,000 | 2,408,000 | 1,686,000 | ||||||
Retained Earnings | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance, beginning | 18,861,417,000 | 15,078,788,000 | 14,685,329,000 | ||||||
Net earnings (including net earnings attributable to noncontrolling interests) | 596,534,000 | 503,581,000 | |||||||
Cash dividends | (107,891,000) | (110,122,000) | |||||||
Balance, ending | 19,350,060,000 | 18,861,417,000 | 15,078,788,000 | ||||||
Noncontrolling Interests | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance, beginning | 139,867,000 | 168,368,000 | 179,857,000 | ||||||
Net earnings (including net earnings attributable to noncontrolling interests) | 2,774,000 | 5,734,000 | |||||||
Receipts related to noncontrolling interests | 2,497,000 | 6,984,000 | |||||||
Payments related to noncontrolling interests | (21,256,000) | (59,388,000) | |||||||
Non-cash purchase or activity of noncontrolling interests, net | 13,150,000 | 35,181,000 | |||||||
Balance, ending | $ 137,032,000 | 139,867,000 | $ 168,368,000 | ||||||
Common Class A | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Shares repurchased during period (in shares) | 1,446,205 | 4,616,000 | |||||||
Total purchase price | $ 143,068,000 | $ 472,924,000 | |||||||
Average share price of shares repurchased (in dollars per share) | $ 98.93 | $ 102.45 | |||||||
Common Class A | Common Stock | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance, beginning | $ 25,608,000 | 30,243,000 | $ 30,050,000 | ||||||
Employee stock and directors plans | 226,000 | 193,000 | |||||||
Balance, ending | $ 25,834,000 | 25,608,000 | $ 30,243,000 | ||||||
Common Class B | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Shares repurchased during period (in shares) | 553,795 | 652,000 | |||||||
Total purchase price | $ 46,105,000 | $ 53,331,000 | |||||||
Average share price of shares repurchased (in dollars per share) | $ 83.25 | $ 81.80 | |||||||
Common Class B | Common Stock | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance, beginning | $ 3,660,000 | $ 3,944,000 | $ 3,944,000 | ||||||
Balance, ending | $ 3,660,000 | $ 3,660,000 | $ 3,944,000 | ||||||
[1]As of February 28, 2023, total liabilities include $580.0 million related to consolidated VIEs as to which there was no recourse against the Company, of which $64.4 million is included in Homebuilding accounts payable, $477.6 million in Homebuilding liabilities related to consolidated inventory not owned, $30.1 million in Homebuilding senior notes and other debts payable, $2.1 million in Homebuilding other liabilities, $3.7 million in Multifamily liabilities and $2.1 million in Lennar Other liabilities.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 debt payable, $7.2 million in Homebuilding other liabilities, $3.8 million in Multifamily liabilities and $2.2 million in Lennar Other liabilities. |
Income Taxes (Income Tax Benefi
Income Taxes (Income Tax Benefit (Provision) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 185,145 | $ 167,420 |
Effective tax rate | 23.70% | 25% |
Schedule of Basic and Diluted E
Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Numerator: | ||
Net earnings attributable to Lennar | $ 596,534 | $ 503,581 |
Less: distributed earnings allocated to nonvested shares | 724 | 780 |
Less: undistributed earnings allocated to nonvested shares | 5,895 | 4,548 |
Numerator for basic earnings per share | 589,915 | 498,253 |
Less: net amount attributable to noncontrolling interests in Rialto's Carried Interest Incentive Plan | 1,038 | 1,798 |
Numerator for diluted earnings per share | $ 588,877 | $ 496,455 |
Denominator: | ||
Denominator for basic earnings per share-weighted average common shares outstanding (shares) | 286,074 | 293,930 |
Denominator for diluted earnings per share-weighted average common shares outstanding (shares) | 286,074 | 293,930 |
Basic earnings per share (in dollars per share) | $ 2.06 | $ 1.70 |
Diluted earnings per share (in dollars per share) | $ 2.06 | $ 1.69 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Options to purchase outstanding and anti-dilutive shares (in shares) | 0 | 0 |
Homebuilding Senior Notes and_3
Homebuilding Senior Notes and Other Debts Payable (Schedule of Senior Notes and Other Debts Payable) (Details) - Homebuilding - USD ($) $ in Thousands | Feb. 28, 2023 | Nov. 30, 2022 | |
Debt Instrument [Line Items] | |||
Senior notes and other debts payable, net | [1] | $ 4,033,335 | $ 4,047,294 |
Senior Notes | 4.875% senior notes due December 2023 | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.875% | ||
Senior notes and other debts payable, net | $ 399,369 | 399,169 | |
Senior Notes | 4.50% senior notes due 2024 | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.50% | ||
Senior notes and other debts payable, net | $ 649,156 | 648,975 | |
Senior Notes | 5.875% senior notes due 2024 | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.875% | ||
Senior notes and other debts payable, net | $ 432,961 | 434,128 | |
Senior Notes | 4.75% senior notes due 2025 | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.75% | ||
Senior notes and other debts payable, net | $ 499,003 | 498,892 | |
Senior Notes | 5.25% senior notes due 2026 | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.25% | ||
Senior notes and other debts payable, net | $ 403,953 | 404,257 | |
Senior Notes | 5.00% senior notes due 2027 | |||
Debt Instrument [Line Items] | |||
Interest rate | 5% | ||
Senior notes and other debts payable, net | $ 351,645 | 351,741 | |
Senior Notes | 4.75% senior notes due 2027 | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.75% | ||
Senior notes and other debts payable, net | $ 896,446 | 896,259 | |
Mortgage notes on land and other debt | |||
Debt Instrument [Line Items] | |||
Senior notes and other debts payable, net | $ 400,802 | $ 413,873 | |
[1]As of February 28, 2023, total liabilities include $580.0 million related to consolidated VIEs as to which there was no recourse against the Company, of which $64.4 million is included in Homebuilding accounts payable, $477.6 million in Homebuilding liabilities related to consolidated inventory not owned, $30.1 million in Homebuilding senior notes and other debts payable, $2.1 million in Homebuilding other liabilities, $3.7 million in Multifamily liabilities and $2.1 million in Lennar Other liabilities.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 debt payable, $7.2 million in Homebuilding other liabilities, $3.8 million in Multifamily liabilities and $2.2 million in Lennar Other liabilities. |
Homebuilding Senior Notes and_4
Homebuilding Senior Notes and Other Debts Payable (Narrative) (Details) - Homebuilding - USD ($) | Feb. 28, 2023 | Nov. 30, 2022 |
Letter of Credit | ||
Debt Instrument [Line Items] | ||
Maximum borrowings | $ 500,000,000 | |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt issuance cost | $ 6,900,000 | $ 7,600,000 |
Homebuilding Senior Notes and_5
Homebuilding Senior Notes and Other Debts Payable (Credit Facility) (Details) - Unsecured revolving credit facility - Homebuilding | Feb. 28, 2023 USD ($) |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 2,575,000,000 |
Accordion feature | 425,000,000 |
Maximum borrowing capacity after accordion feature | 3,000,000,000 |
Commitment - maturing in April 2024 | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | 350,000,000 |
Commitment - maturing in May 2027 | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 2,225,000,000 |
Homebuilding Senior Notes and_6
Homebuilding Senior Notes and Other Debts Payable (Letter of Credit Facilities) (Details) - USD ($) $ in Thousands | Feb. 28, 2023 | Nov. 30, 2022 |
Performance letters of credit | ||
Line of Credit Facility [Line Items] | ||
Letters of credit | $ 1,236,516 | $ 1,259,033 |
Financial letters of credit | ||
Line of Credit Facility [Line Items] | ||
Letters of credit | 457,117 | 503,659 |
Surety bonds | ||
Line of Credit Facility [Line Items] | ||
Letters of credit | 4,166,287 | 4,136,715 |
Anticipated future costs primarily for site improvements related to performance surety bonds | ||
Line of Credit Facility [Line Items] | ||
Letters of credit | $ 2,288,199 | $ 2,273,694 |
Product Warranty (Schedule of P
Product Warranty (Schedule of Product Warranty Reserve) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Warranty reserve, beginning of the period | $ 418,017 | $ 377,021 |
Warranties issued | 53,679 | 49,192 |
Adjustments to pre-existing warranties from changes in estimates | (4,058) | 4,724 |
Payments | (64,304) | (56,791) |
Warranty reserve, end of period | $ 403,334 | $ 374,146 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Disclosures - (Carrying Amounts And Estimated Fair Value Of Financial Instruments) (Details) - USD ($) $ in Thousands | Feb. 28, 2023 | Nov. 30, 2022 |
Financial Services | Level 3 | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable and loans held-for-investment | $ 45,327 | $ 45,636 |
Investments held-to-maturity | 141,854 | 143,251 |
Financial Services | Level 3 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable and loans held-for-investment | 45,334 | 45,647 |
Investments held-to-maturity | 141,767 | 143,208 |
Financial Services | Level 1 | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | 1,171,638 | 2,135,093 |
Financial Services | Level 1 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | 1,172,302 | 2,135,797 |
Homebuilding | Level 1 | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | 4,033,335 | 4,047,294 |
Homebuilding | Level 1 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | 3,958,592 | 3,993,242 |
Multifamily | Level 1 | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | 16,828 | 16,749 |
Multifamily | Level 1 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | $ 16,828 | $ 16,749 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Disclosures - (Fair Value Measured On Recurring Basis) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Feb. 28, 2023 | Nov. 30, 2022 |
Level 1 | Financial Services | Forward options | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Derivative asset | $ 6,167 | $ 9,473 |
Level 1 | Lennar Other | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Investments in equity securities | 189,324 | 212,981 |
Level 3 | Financial Services | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Mortgage servicing rights | 3,450 | 3,463 |
Level 3 | Lennar Other | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Investments available-for-sale | 36,332 | 35,482 |
Residential | Loans held-for-sale | Financial Services | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Aggregate principal balance | 1,222,860 | 1,734,480 |
Aggregate fair value of loans (below) in excess of principal balance | (15,229) | 16,233 |
Residential | Level 1 | Financial Services | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 1,207,631 | 1,750,712 |
Commercial | Loans held-for-sale | Financial Services | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Aggregate principal balance | 26,280 | 24,000 |
Aggregate fair value of loans (below) in excess of principal balance | (445) | 1,599 |
Commercial | Level 3 | Financial Services | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | $ 25,835 | $ 25,599 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Disclosures - (Mortgage Servicing Rights Unobservable Inputs) (Details) - Financial Services - Level 3 | Feb. 28, 2023 | Nov. 30, 2022 |
Mortgage prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs for valuation of mortgage servicing rights | 0.08 | 0.08 |
Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs for valuation of mortgage servicing rights | 0.13 | 0.13 |
Delinquency rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs for valuation of mortgage servicing rights | 0.08 | 0.07 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Disclosures - (Schedule Of Gains And Losses Of Financial Instruments) (Details) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Changes in fair value included in other comprehensive income (loss), net of tax | $ 851 | $ 742 |
Fair Value, Measurements, Recurring | Financial Services | Loans held-for-sale | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Lennar Other unrealized loss from technology investments | (31,462) | (27,387) |
Fair Value, Measurements, Recurring | Financial Services | Mortgage loan commitments | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Lennar Other unrealized loss from technology investments | (48,844) | 13,797 |
Fair Value, Measurements, Recurring | Financial Services | Forward contracts | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Lennar Other unrealized loss from technology investments | 91,509 | 9,900 |
Fair Value, Measurements, Recurring | Financial Services | Forward options | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Lennar Other unrealized loss from technology investments | (852) | 0 |
Fair Value, Measurements, Recurring | Lennar Other | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Changes in fair value included in other comprehensive income (loss), net of tax | 851 | 742 |
Fair Value, Measurements, Recurring | Lennar Other | Equity Securities | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Lennar Other unrealized loss from technology investments | $ (23,954) | $ (395,170) |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Disclosures - (Reconciliation Of Beginning And Ending Balance For The Company's Level 3 Recurring Fair Value Measurements) (Details) - Financial Services - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Mortgage servicing rights | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 3,463 | $ 2,492 |
Purchases/loan originations | 51 | 82 |
Sales/loan originations sold, including those not settled | 0 | 0 |
Disposals/settlements | (63) | (159) |
Changes in fair value | (1) | 378 |
Interest and principal paydowns | 0 | 0 |
Ending balance | 3,450 | 2,793 |
LMF Commercial loans held-for-sale | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 25,599 | 68 |
Purchases/loan originations | 79,480 | 264,845 |
Sales/loan originations sold, including those not settled | (77,200) | (178,082) |
Disposals/settlements | 0 | 0 |
Changes in fair value | (445) | (590) |
Interest and principal paydowns | (1,599) | (446) |
Ending balance | $ 25,835 | $ 85,795 |
Financial Instruments and Fai_8
Financial Instruments and Fair Value Disclosures - (Fair Value Assets Measured On Nonrecurring Basis) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Inventory Write-down | $ 0 | $ 0 |
Homebuilding | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Inventory Write-down | 14,500 | |
Fair Value, Measurements, Nonrecurring | Level 3 | Homebuilding | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Finished homes and construction in progress, carrying value | 164,544 | 15,358 |
Finished homes and construction in progress, fair value | 158,237 | 13,841 |
Finished homes and construction in progress, total losses, net | (6,307) | (1,517) |
Land and land under development, carrying value | 39,616 | 20,752 |
Land and land under development, fair value | 23,142 | 10,760 |
Land and land under development, total losses, net | (16,474) | (9,992) |
Other assets, carrying value | 3,065 | 0 |
Other assets, fair value | 0 | 0 |
Other assets, total losses, net | $ (3,065) | $ 0 |
Financial Instruments and Fai_9
Financial Instruments and Fair Value Disclosures - (Narrative) (Details) - community | Feb. 28, 2023 | Feb. 28, 2022 |
Fair Value Disclosures [Abstract] | ||
Active communities | 1,210 | 1,199 |
Financial Instruments and Fa_10
Financial Instruments and Fair Value Disclosures - (Communities with Indicators for Impairment) (Details) $ in Thousands | 3 Months Ended | |
Feb. 28, 2023 USD ($) community | Feb. 28, 2022 USD ($) community | |
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Active communities | 1,210 | 1,199 |
Number of Communities with potential indicator of impairment | 27 | 5 |
Number of communities with valuation adjustments | 0 | 0 |
Valuation adjustments | $ | $ 0 | $ 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Fair value of communities with valuation adjustments | $ | $ 0 | $ 0 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 28, 2023 | Nov. 30, 2022 | ||
Variable Interest Entity [Line Items] | |||
Assets | [1] | $ 36,573,154 | $ 37,984,295 |
Total liabilities | [2] | 12,017,867 | $ 13,743,928 |
Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Increase in consolidated inventory | $ 107,800 | ||
[1] Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations ("ASC 810"), the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities ("VIEs") and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations. As of February 28, 2023, total assets include $1.4 billion related to consolidated VIEs of which $31.1 million is included in Homebuilding cash and cash equivalents, $0.7 million in Homebuilding receivables, net, $59.0 million in Homebuilding finished homes and construction in progress, $742.4 million in Homebuilding land and land under development, $502.0 million in Homebuilding consolidated inventory not owned, $0.7 million in Homebuilding investments in unconsolidated entities, $21.1 million in Homebuilding other assets, $31.0 million in Multifamily assets and $6.8 million in Lennar Other assets. 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 $9.0 million in Lennar Other assets. |
Variable Interest Entities (Est
Variable Interest Entities (Estimated Maximum Exposure To Loss) (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands | Feb. 28, 2023 | Nov. 30, 2022 |
Variable Interest Entity [Line Items] | ||
Investments in Unconsolidated VIEs | $ 1,226,993 | $ 1,393,622 |
Lennar’s Maximum Exposure to Loss | 1,329,387 | 1,551,856 |
Homebuilding | ||
Variable Interest Entity [Line Items] | ||
Investments in Unconsolidated VIEs | 637,253 | 586,935 |
Lennar’s Maximum Exposure to Loss | 720,432 | 718,719 |
Homebuilding | Upward America Venture | Commitment to fund capital | ||
Variable Interest Entity [Line Items] | ||
Obligations related to VIEs | 68,600 | 77,300 |
Homebuilding | Upward America Venture | Commitment for short-term loan and management fee receivable | ||
Variable Interest Entity [Line Items] | ||
Obligations related to VIEs | 52,700 | |
Homebuilding | Upward America Venture | Commitment for recourse debt | ||
Variable Interest Entity [Line Items] | ||
Obligations related to VIEs | 10,500 | |
Multifamily | ||
Variable Interest Entity [Line Items] | ||
Investments in Unconsolidated VIEs | 384,537 | 607,484 |
Lennar’s Maximum Exposure to Loss | 403,752 | 633,934 |
Multifamily | Equity Commitments | ||
Variable Interest Entity [Line Items] | ||
Obligations related to VIEs | (14,200) | (19,300) |
Financial Services | ||
Variable Interest Entity [Line Items] | ||
Investments in Unconsolidated VIEs | 141,854 | 143,251 |
Lennar’s Maximum Exposure to Loss | 141,854 | 143,251 |
Lennar Other | ||
Variable Interest Entity [Line Items] | ||
Investments in Unconsolidated VIEs | 63,349 | 55,952 |
Lennar’s Maximum Exposure to Loss | $ 63,349 | $ 55,952 |
Variable Interest Entities (Exp
Variable Interest Entities (Exposure to Losses) (Details) - Variable Interest Entity, Not Primary Beneficiary Including Third Parties - USD ($) $ in Thousands | Feb. 28, 2023 | Nov. 30, 2022 |
Variable Interest Entity [Line Items] | ||
Non-refundable option deposits and pre-acquisition costs | $ 1,992,028 | $ 1,990,946 |
Financial Standby Letters of Credit | ||
Variable Interest Entity [Line Items] | ||
Letters of credit in lieu of cash deposits under certain land and option contracts | $ 140,002 | $ 163,942 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities - (Additional Information About Leases) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Nov. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Right-of-use assets | $ 143,457 | $ 149,966 | |
Lease liabilities | $ 152,157 | $ 158,832 | |
Weighted-average remaining lease term (in years) | 7 years 9 months 18 days | 7 years 10 months 24 days | |
Weighted-average discount rate | 3.10% | 3% | |
Rental expense | $ 26,904 | $ 25,641 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - (Future MInimum Payments Under Noncancellable Leases) (Details) - USD ($) $ in Thousands | Feb. 28, 2023 | Nov. 30, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
2023 | $ 25,877 | |
2024 | 28,766 | |
2025 | 24,298 | |
2026 | 18,948 | |
2027 | 16,130 | |
2027 and thereafter | 56,957 | |
Total future minimum lease payments | 170,976 | |
Less: Interest | 18,819 | |
Present value of lease liabilities | 152,157 | $ 158,832 |
Variable lease costs | 22,700 | |
Short-term lease costs | $ 2,700 | |
Weighted-average remaining lease term (in years) | 7 years 9 months 18 days | 7 years 10 months 24 days |
Weighted-average discount rate | 3.10% | 3% |