Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Nov. 30, 2021 | Dec. 31, 2021 | May 31, 2021 | |
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Nov. 30, 2021 | ||
Current Fiscal Year End Date | --11-30 | ||
Document Transition Report | false | ||
Entity File Number | 1-11749 | ||
Entity Registrant Name | LENNAR CORP /NEW/ | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 95-4337490 | ||
Entity Address, Address Line One | 700 Northwest 107th Avenue | ||
Entity Address, City or Town | Miami | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33172 | ||
City Area Code | 305 | ||
Local Phone Number | 559-4000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 27,924,845,491 | ||
Documents Incorporated by Reference | Related Section Documents III Definitive Proxy Statement to be filed pursuant to Regulation 14A on or before March 30, 2022. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000920760 | ||
Class A Common Stock | |||
Title of 12(b) Security | Class A Common Stock, par value 10¢ | ||
Trading Symbol | LEN | ||
Security Exchange Name | NYSE | ||
Entity Common Stock, Shares Outstanding | 261,373,994 | ||
Class B Common Stock | |||
Title of 12(b) Security | Class B Common Stock, par value 10¢ | ||
Trading Symbol | LEN.B | ||
Security Exchange Name | NYSE | ||
Entity Common Stock, Shares Outstanding | 37,505,788 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Nov. 30, 2021 | Nov. 30, 2020 | ||
Inventories: | ||||
Investments in unconsolidated entities | $ 1,972,383 | $ 2,064,921 | ||
Total assets | [1] | 33,207,778 | 29,935,177 | |
LIABILITIES AND EQUITY | ||||
Total liabilities | [2] | 12,211,496 | 11,835,776 | |
Stockholders’ equity: | ||||
Preferred stock | [2] | 0 | 0 | |
Additional paid-in capital | [2] | 8,807,891 | 8,676,056 | |
Retained earnings | [2] | 14,685,329 | 10,564,994 | |
Treasury stock, at cost; 2021 - 38,586,961 shares of Class A common stock and 1,922,016 shares of Class B common stock; 2020 - 23,864,589 shares of Class A common stock and 1,822,016 shares of Class B common stock | [2] | (2,709,448) | (1,279,227) | |
Accumulated other comprehensive loss | [2] | (1,341) | (805) | |
Total stockholders’ equity | [2] | 20,816,425 | 17,994,856 | |
Noncontrolling interests | [2] | 179,857 | 104,545 | |
Total equity | [2] | 20,996,282 | 18,099,401 | |
Total liabilities and equity | [2] | 33,207,778 | 29,935,177 | |
Class A Common Stock | ||||
Stockholders’ equity: | ||||
Common stock | [2] | 30,050 | 29,894 | |
Class B Common Stock | ||||
Stockholders’ equity: | ||||
Common stock | [2] | 3,944 | 3,944 | |
Homebuilding | ||||
ASSETS | ||||
Cash and cash equivalents | [1] | 2,735,213 | 2,703,986 | |
Restricted cash | [1] | 21,927 | 15,211 | |
Receivables, net | [1] | 490,278 | 298,671 | |
Inventories: | ||||
Finished homes and construction in progress | [1] | 10,446,139 | 8,593,399 | |
Land and land under development | [1] | 7,108,142 | 7,495,262 | |
Consolidated inventory not owned | [1] | 1,161,023 | 836,567 | |
Total inventories | [1] | 18,715,304 | 16,925,228 | |
Investments in unconsolidated entities | [1] | 972,084 | 953,177 | |
Goodwill | 3,442,359 | [1] | 3,442,359 | |
Other assets | [1] | 1,090,654 | 1,190,793 | |
Total assets | [1] | 27,467,819 | 25,529,425 | |
LIABILITIES AND EQUITY | ||||
Accounts payable | [2] | 1,321,247 | 1,037,338 | |
Liabilities related to consolidated inventory not owned | [2] | 976,602 | 706,691 | |
Senior notes and other debts payable, net | [2] | 4,652,338 | 5,955,758 | |
Other liabilities | [2] | 2,920,055 | 2,225,864 | |
Total liabilities | [2] | 9,870,242 | 9,925,651 | |
Financial Services | ||||
ASSETS | ||||
Cash and cash equivalents | 167,021 | 116,171 | ||
Restricted cash | 12,012 | 54,481 | ||
Inventories: | ||||
Total assets | [1] | 2,964,367 | 2,708,118 | |
LIABILITIES AND EQUITY | ||||
Total liabilities | [2] | 1,906,343 | 1,644,248 | |
Multifamily | ||||
ASSETS | ||||
Cash and cash equivalents | 16,850 | 38,963 | ||
Inventories: | ||||
Investments in unconsolidated entities | 654,029 | 724,647 | ||
Total assets | [1] | 1,311,747 | 1,175,908 | |
LIABILITIES AND EQUITY | ||||
Total liabilities | [2] | 288,930 | 252,911 | |
Lennar Other | ||||
ASSETS | ||||
Cash and cash equivalents | 2,660 | 3,918 | ||
Restricted cash | 0 | 0 | ||
Inventories: | ||||
Investments in unconsolidated entities | 346,270 | 387,097 | ||
Total assets | [1] | 1,463,845 | 521,726 | |
LIABILITIES AND EQUITY | ||||
Total liabilities | [2] | $ 145,981 | $ 12,966 | |
[1] | Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its consolidated balance sheets the assets of consolidated variable interest entities ("VIEs") that are owned by the consolidated VIEs and liabilities of consolidated VIEs as to which there is no recourse against the Company. As of November 30, 2021, total assets include $1.1 billion related to consolidated VIEs of which $60.9 million is included in Homebuilding cash and cash equivalents, $4.4 million in Homebuilding receivables, net, $14.3 million in Homebuilding finished homes and construction in progress, $697.1 million in Homebuilding land and land under development, $239.2 million in Homebuilding consolidated inventory not owned, $1.1 million in Homebuilding investments in unconsolidated entities, $17.4 million in Homebuilding other assets and $80.6 million in Multifamily assets. As of November 30, 2020, total assets include $1.1 billion related to consolidated VIEs of which $32.1 million is included in Homebuilding cash and cash equivalents, $0.1 million in Homebuilding receivables, net, $14.2 million in Homebuilding finished homes and construction in progress, $486.8 million in Homebuilding land and land under development, $426.3 million in Homebuilding consolidated inventory not owned, $1.6 million in Homebuilding investments in unconsolidated entities, $120.6 million in Homebuilding other assets and $39.9 million in Multifamily assets. | |||
[2] | As of November 30, 2021, total liabilities include $258.5 million related to consolidated VIEs as to which there was no recourse against the Company, of which $26.6 million is included in Homebuilding accounts payable, $196.6 million in Homebuilding liabilities related to consolidated inventory not owned, $20.1 million in Homebuilding senior notes and other debts payable, $12.3 million in Homebuilding other liabilities and $2.8 million in Multifamily liabilities.As of November 30, 2020, total liabilities include $528.5 million related to consolidated VIEs as to which there was no recourse against the Company, of which $28.4 million is included in Homebuilding accounts payable, $351.4 million in Homebuilding liabilities related to consolidated inventory not owned, $129.1 million in Homebuilding senior notes and other debts payable, $9.9 million in Homebuilding other liabilities and $9.8 million in Multifamily liabilities. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Nov. 30, 2021 | Nov. 30, 2020 | |
Total assets | [1] | $ 33,207,778 | $ 29,935,177 |
Investments in unconsolidated entities | 1,972,383 | 2,064,921 | |
Operating properties and equipment, net | 339,906 | 411,518 | |
Total liabilities | [2] | 12,211,496 | 11,835,776 |
Variable Interest Entity, Primary Beneficiary | |||
Total assets | 1,100,000 | 1,100,000 | |
Total liabilities | $ 258,500 | $ 528,500 | |
Class A Common Stock | |||
Common stock, par value (in USD per share) | $ 0.10 | $ 0.10 | |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 | |
Common stock, shares issued (in shares) | 300,500,075 | 298,942,836 | |
Treasury stock, shares (in shares) | 38,586,961 | 23,864,589 | |
Class B Common Stock | |||
Common stock, par value (in USD per share) | $ 0.10 | $ 0.10 | |
Common stock, shares authorized (in shares) | 90,000,000 | 90,000,000 | |
Common stock, shares issued (in shares) | 39,443,168 | 39,443,168 | |
Treasury stock, shares (in shares) | 1,922,016 | 1,822,016 | |
Homebuilding | |||
Total assets | [1] | $ 27,467,819 | $ 25,529,425 |
Cash and cash equivalents | [1] | 2,735,213 | 2,703,986 |
Receivables, net | [1] | 490,278 | 298,671 |
Finished homes and construction in progress | [1] | 10,446,139 | 8,593,399 |
Land and land under development | [1] | 7,108,142 | 7,495,262 |
Consolidated inventory not owned | [1] | 1,161,023 | 836,567 |
Investments in unconsolidated entities | [1] | 972,084 | 953,177 |
Other assets | [1] | 1,090,654 | 1,190,793 |
Total liabilities | [2] | 9,870,242 | 9,925,651 |
Accounts payable | [2] | 1,321,247 | 1,037,338 |
Senior notes and other debts payable, net | [2] | 4,652,338 | 5,955,758 |
Liabilities related to consolidated inventory not owned | [2] | 976,602 | 706,691 |
Other liabilities | [2] | 2,920,055 | 2,225,864 |
Homebuilding | Variable Interest Entity, Primary Beneficiary | |||
Cash and cash equivalents | 60,900 | 32,100 | |
Receivables, net | 4,400 | 100 | |
Finished homes and construction in progress | 14,300 | 14,200 | |
Land and land under development | 697,100 | 486,800 | |
Consolidated inventory not owned | 239,200 | 426,300 | |
Investments in unconsolidated entities | 1,100 | 1,600 | |
Other assets | 17,400 | 120,600 | |
Accounts payable | 26,600 | 28,400 | |
Senior notes and other debts payable, net | 20,100 | 129,100 | |
Liabilities related to consolidated inventory not owned | 196,600 | 351,400 | |
Other liabilities | 12,300 | 9,900 | |
Lennar Other | |||
Total assets | [1] | 1,463,845 | 521,726 |
Cash and cash equivalents | 2,660 | 3,918 | |
Investments in unconsolidated entities | 346,270 | 387,097 | |
Total liabilities | [2] | 145,981 | 12,966 |
Multifamily | |||
Total assets | [1] | 1,311,747 | 1,175,908 |
Cash and cash equivalents | 16,850 | 38,963 | |
Investments in unconsolidated entities | 654,029 | 724,647 | |
Total liabilities | [2] | 288,930 | 252,911 |
Multifamily | Variable Interest Entity, Primary Beneficiary | |||
Total assets | 80,600 | 39,900 | |
Total liabilities | 2,800 | 9,800 | |
Financial Services | |||
Total assets | [1] | 2,964,367 | 2,708,118 |
Cash and cash equivalents | 167,021 | 116,171 | |
Total liabilities | [2] | $ 1,906,343 | $ 1,644,248 |
[1] | Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its consolidated balance sheets the assets of consolidated variable interest entities ("VIEs") that are owned by the consolidated VIEs and liabilities of consolidated VIEs as to which there is no recourse against the Company. As of November 30, 2021, total assets include $1.1 billion related to consolidated VIEs of which $60.9 million is included in Homebuilding cash and cash equivalents, $4.4 million in Homebuilding receivables, net, $14.3 million in Homebuilding finished homes and construction in progress, $697.1 million in Homebuilding land and land under development, $239.2 million in Homebuilding consolidated inventory not owned, $1.1 million in Homebuilding investments in unconsolidated entities, $17.4 million in Homebuilding other assets and $80.6 million in Multifamily assets. As of November 30, 2020, total assets include $1.1 billion related to consolidated VIEs of which $32.1 million is included in Homebuilding cash and cash equivalents, $0.1 million in Homebuilding receivables, net, $14.2 million in Homebuilding finished homes and construction in progress, $486.8 million in Homebuilding land and land under development, $426.3 million in Homebuilding consolidated inventory not owned, $1.6 million in Homebuilding investments in unconsolidated entities, $120.6 million in Homebuilding other assets and $39.9 million in Multifamily assets. | ||
[2] | As of November 30, 2021, total liabilities include $258.5 million related to consolidated VIEs as to which there was no recourse against the Company, of which $26.6 million is included in Homebuilding accounts payable, $196.6 million in Homebuilding liabilities related to consolidated inventory not owned, $20.1 million in Homebuilding senior notes and other debts payable, $12.3 million in Homebuilding other liabilities and $2.8 million in Multifamily liabilities.As of November 30, 2020, total liabilities include $528.5 million related to consolidated VIEs as to which there was no recourse against the Company, of which $28.4 million is included in Homebuilding accounts payable, $351.4 million in Homebuilding liabilities related to consolidated inventory not owned, $129.1 million in Homebuilding senior notes and other debts payable, $9.9 million in Homebuilding other liabilities and $9.8 million in Multifamily liabilities. |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | |
Revenues: | |||
Total revenues | $ 27,130,676 | $ 22,488,854 | $ 22,259,561 |
Costs and expenses: | |||
Corporate general and administrative | 398,381 | 333,446 | 321,188 |
Contribution Expense | 59,825 | 24,972 | 19,926 |
Total costs and expenses | 22,052,243 | 19,373,164 | 19,798,380 |
Equity in earnings (loss) from unconsolidated entities | 48,993 | (22,127) | 2,528 |
Earnings before income taxes | 5,819,058 | 3,123,788 | 2,434,292 |
Provision for income taxes | (1,362,509) | (656,235) | (592,173) |
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | 4,456,549 | 2,467,553 | 1,842,119 |
Less: Net earnings (loss) attributable to noncontrolling interests | 26,438 | 2,517 | (6,933) |
Net earnings attributable to Lennar | 4,430,111 | 2,465,036 | 1,849,052 |
Other comprehensive income (loss), net of tax: | |||
Net unrealized gain (loss) on securities available-for-sale | (536) | (851) | 1,040 |
Reclassification adjustments for gains included in net earnings | 0 | (452) | (176) |
Total other comprehensive income (loss), net of tax | (536) | (1,303) | 864 |
Total comprehensive income attributable to Lennar | 4,429,575 | 2,463,733 | 1,849,916 |
Total comprehensive income (loss) attributable to noncontrolling interests | $ 26,438 | $ 2,517 | $ (6,933) |
Basic earnings per share (in USD per share) | $ 14.28 | $ 7.88 | $ 5.76 |
Diluted earnings per share (in USD per share) | $ 14.27 | $ 7.85 | $ 5.74 |
Homebuilding | Operating Segments | |||
Revenues: | |||
Total revenues | $ 25,545,242 | $ 20,981,136 | $ 20,793,216 |
Costs and expenses: | |||
Costs and expenses | 20,502,541 | 17,961,644 | 18,245,700 |
Corporate general and administrative | 0 | 0 | 0 |
Contribution Expense | 0 | 0 | 0 |
Equity in earnings (loss) from unconsolidated entities | (14,205) | (836) | (13,273) |
Other income (expense), net | 3,266 | (29,749) | (31,338) |
Earnings before income taxes | 5,031,762 | 2,988,907 | 2,502,905 |
Financial Services | Operating Segments | |||
Revenues: | |||
Total revenues | 898,745 | 890,311 | 824,810 |
Costs and expenses: | |||
Costs and expenses | 407,731 | 470,777 | 600,168 |
Corporate general and administrative | 0 | 0 | 0 |
Contribution Expense | 0 | 0 | 0 |
Financial Services gain on deconsolidation | 0 | 61,418 | 0 |
Earnings before income taxes | 491,014 | 480,952 | 224,642 |
Multifamily | Operating Segments | |||
Revenues: | |||
Total revenues | 665,232 | 576,328 | 604,700 |
Costs and expenses: | |||
Costs and expenses | 652,810 | 575,581 | 599,604 |
Corporate general and administrative | 0 | 0 | 0 |
Contribution Expense | 0 | 0 | 0 |
Multifamily equity in earnings from unconsolidated entities and other gain | 9,031 | 21,934 | 11,294 |
Earnings before income taxes | 21,453 | 22,681 | 16,390 |
Lennar Other | Operating Segments | |||
Revenues: | |||
Total revenues | 21,457 | 41,079 | 36,835 |
Costs and expenses: | |||
Costs and expenses | 30,955 | 6,744 | 11,794 |
Corporate general and administrative | 0 | 0 | 0 |
Contribution Expense | 0 | 0 | 0 |
Other income (expense), net | 680,576 | 0 | 0 |
Lennar Other equity in earnings (loss) from unconsolidated entities and other income (expense), net | 61,957 | (44,669) | 6,428 |
Earnings before income taxes | $ 733,035 | $ (10,334) | $ 31,469 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Class A Common Stock | Class B Common Stock | Common StockClass A Common Stock | Common StockClass B Common Stock | Additional Paid-In Capital | Retained Earnings | Retained EarningsCumulative-effect of accounting change | Retained EarningsClass A Common Stock | Retained EarningsClass B Common Stock | Treasury Stock | Accumulated Comprehensive Other Income (Loss) | Total Stockholders' Equity | Noncontrolling Interests | |
Beginning balance at Nov. 30, 2018 | $ 29,499 | $ 3,944 | $ 8,496,677 | $ 6,487,650 | $ 9,753 | $ (435,869) | $ (366) | $ 101,422 | |||||||
Statement of Equity [Roll Forward] | |||||||||||||||
Employee stock and director plans | 213 | 415 | (29,049) | ||||||||||||
Amortization of restricted stock | 86,940 | ||||||||||||||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | $ 1,842,119 | 1,849,052 | (6,933) | ||||||||||||
Cash dividends | $ (45,418) | $ (6,036) | |||||||||||||
Purchases of treasury stock | (492,939) | ||||||||||||||
Total other comprehensive income (loss), net of tax | 864 | ||||||||||||||
Receipts related to noncontrolling interests | 27,859 | ||||||||||||||
Payments related to noncontrolling interests | (43,734) | ||||||||||||||
Non-cash consolidations/deconsolidations, net | 8,894 | ||||||||||||||
Non-cash purchase or activity of noncontrolling interests, net | (5,813) | (3,195) | |||||||||||||
Ending balance at Nov. 30, 2019 | 16,033,830 | 29,712 | 3,944 | 8,578,219 | 8,295,001 | 0 | (957,857) | 498 | $ 15,949,517 | 84,313 | |||||
Statement of Equity [Roll Forward] | |||||||||||||||
Employee stock and director plans | 182 | 576 | (32,855) | ||||||||||||
Amortization of restricted stock | 107,131 | ||||||||||||||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | 2,467,553 | 2,465,036 | 2,517 | ||||||||||||
Cash dividends | (171,520) | (23,523) | |||||||||||||
Purchases of treasury stock | $ (282,274) | $ (6,155) | (288,515) | ||||||||||||
Total other comprehensive income (loss), net of tax | (1,303) | ||||||||||||||
Receipts related to noncontrolling interests | 176,617 | ||||||||||||||
Payments related to noncontrolling interests | (42,349) | ||||||||||||||
Non-cash consolidations/deconsolidations, net | (114,712) | ||||||||||||||
Non-cash purchase or activity of noncontrolling interests, net | (9,870) | (1,841) | |||||||||||||
Ending balance at Nov. 30, 2020 | 18,099,401 | [1] | 29,894 | 3,944 | 8,676,056 | 10,564,994 | $ 0 | (1,279,227) | (805) | 17,994,856 | 104,545 | ||||
Statement of Equity [Roll Forward] | |||||||||||||||
Employee stock and director plans | 156 | 1,207 | (64,662) | ||||||||||||
Amortization of restricted stock | 135,090 | ||||||||||||||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | 4,456,549 | 4,430,111 | 26,438 | ||||||||||||
Cash dividends | $ (272,162) | $ (37,614) | |||||||||||||
Purchases of treasury stock | $ (1,357,081) | $ (8,197) | (1,365,559) | ||||||||||||
Total other comprehensive income (loss), net of tax | (536) | ||||||||||||||
Receipts related to noncontrolling interests | 69,675 | ||||||||||||||
Payments related to noncontrolling interests | (24,605) | ||||||||||||||
Non-cash consolidations/deconsolidations, net | 0 | ||||||||||||||
Non-cash purchase or activity of noncontrolling interests, net | (4,462) | 3,804 | |||||||||||||
Ending balance at Nov. 30, 2021 | $ 20,996,282 | [1] | $ 30,050 | $ 3,944 | $ 8,807,891 | $ 14,685,329 | $ (2,709,448) | $ (1,341) | $ 20,816,425 | $ 179,857 | |||||
[1] | As of November 30, 2021, total liabilities include $258.5 million related to consolidated VIEs as to which there was no recourse against the Company, of which $26.6 million is included in Homebuilding accounts payable, $196.6 million in Homebuilding liabilities related to consolidated inventory not owned, $20.1 million in Homebuilding senior notes and other debts payable, $12.3 million in Homebuilding other liabilities and $2.8 million in Multifamily liabilities.As of November 30, 2020, total liabilities include $528.5 million related to consolidated VIEs as to which there was no recourse against the Company, of which $28.4 million is included in Homebuilding accounts payable, $351.4 million in Homebuilding liabilities related to consolidated inventory not owned, $129.1 million in Homebuilding senior notes and other debts payable, $9.9 million in Homebuilding other liabilities and $9.8 million in Multifamily liabilities. |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | |
Class A Common Stock | |||
Cash dividends (in USD per share) | $ 1 | $ 0.625 | $ 0.16 |
Class B Common Stock | |||
Cash dividends (in USD per share) | $ 1 | $ 0.625 | $ 0.16 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | |||
Cash flows from operating activities: | |||||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | $ 4,456,549 | $ 2,467,553 | $ 1,842,119 | ||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||
Depreciation and amortization | 85,954 | 94,553 | 92,200 | ||
Amortization of discount/premium on debt, net | (6,775) | (24,775) | (26,210) | ||
Equity in (earnings) loss from unconsolidated entities | (48,993) | 22,127 | (2,528) | ||
Distributions of earnings from unconsolidated entities | 45,984 | 62,073 | 12,753 | ||
Share-based compensation expense | 134,621 | 107,131 | 86,940 | ||
Deferred income tax expense | 191,627 | 92,082 | 235,493 | ||
Unrealized Gain (Loss) on Financing Receivables, Held-for-sale | 14,449 | (21,765) | (4,891) | ||
Loss on Extinguishment of Debt | (2,204) | 7,997 | 0 | ||
(Gain) loss on sale of other assets, operating properties and equipment, CMBS bonds, other liabilities and real estate owned | (27,678) | (8,626) | (23,124) | ||
(Gain) loss on deconsolidation/consolidation of an entity | 0 | (56,594) | 48,874 | ||
Valuation adjustments and write-offs of option deposits and pre-acquisition costs, other receivables and other assets | 25,696 | 117,825 | 56,125 | ||
Changes in assets and liabilities: | |||||
(Increase) decrease in receivables | (289,776) | 25,868 | 312,255 | ||
(Increase) decrease in inventories, excluding valuation adjustments and write-offs of option deposits and pre-acquisition costs | (1,960,614) | 781,362 | (623,644) | ||
(Increase) decrease in other assets | (121,036) | 90,534 | (69,699) | ||
(Increase) decrease in loans held-for-sale | (160,785) | 176,617 | (426,448) | ||
Increase (decrease) in accounts payable and other liabilities | 881,309 | 266,488 | (14,639) | ||
Net cash provided by operating activities | 2,532,774 | 4,190,819 | 1,482,343 | ||
Cash flows from investing activities: | |||||
Net additions to operating properties and equipment | (65,172) | (72,752) | (86,497) | ||
Proceeds from the sale of operating properties and equipment, other assets, CMBS bonds and real estate owned | 41,551 | 33,934 | 79,307 | ||
Proceeds from Divestiture of Interest in Joint Venture | 32,340 | 0 | 17,790 | ||
Investments in and contributions to unconsolidated entities/deconsolidation of previously consolidated entity | (408,183) | (486,217) | (436,325) | ||
Distributions of capital from unconsolidated and consolidated entities | 362,181 | 220,713 | 405,677 | ||
Proceeds from sale of commercial mortgage-backed securities bonds | 11,307 | 3,248 | 0 | ||
Receipts of principal payments on loans receivable and other | 0 | 0 | 2,382 | ||
Decrease (increase) in Financial Services loans held-for-investment, net | 29,397 | (3,122) | (3,516) | ||
Purchases of investment securities | (128,162) | (45,548) | (36,261) | ||
Proceeds from maturities/sales of investment securities | 16,312 | 52,918 | 52,593 | ||
Other receipts, net | 16 | 1,643 | 0 | ||
Net cash (used in) provided by investing activities | (105,086) | (280,205) | 19,596 | ||
Cash flows from financing activities: | |||||
Redemption of senior notes | (1,159,851) | (1,499,999) | (1,101,288) | ||
Principal payments on notes payable and other borrowings | (195,212) | (604,995) | (189,479) | ||
Proceeds from other borrowings | 13,973 | 92,688 | 88,751 | ||
Proceeds from other liabilities | 694,185 | 346,406 | 0 | ||
Payments for Turn of Inventory Not Owned, Financing Activities | (350,583) | 0 | 0 | ||
(Payments) proceeds related to other liabilities, net | 25,564 | (116,541) | (3,850) | ||
Receipts related to noncontrolling interests | 69,675 | 176,617 | 27,859 | ||
Payments related to noncontrolling interests | (24,605) | (42,349) | (43,734) | ||
Common stock: | |||||
Issuances | 0 | 0 | 493 | ||
Repurchases | (1,430,212) | (321,524) | (523,074) | ||
Dividends | (309,776) | (195,043) | (51,454) | ||
Net cash used in financing activities | (2,404,735) | (2,446,575) | (1,629,224) | ||
Net increase (decrease) in cash and cash equivalents | 22,953 | 1,464,039 | (127,285) | ||
Summary of cash and cash equivalents and restricted cash: | |||||
Cash and cash equivalents and restricted cash at beginning of year | 2,932,730 | 1,468,691 | 1,595,976 | ||
Cash and cash equivalents and restricted cash at end of year | 2,955,683 | 2,932,730 | 1,468,691 | ||
Supplemental disclosures of cash flow information: | |||||
Cash paid for interest, net of amounts capitalized | 47,720 | 97,336 | 49,870 | ||
Cash paid for income taxes, net | 1,140,858 | 402,180 | 261,445 | ||
Supplemental disclosures of non-cash investing and financing activities: | |||||
Purchases of inventories, land under development and other assets financed by sellers | 141,319 | 120,796 | 101,300 | ||
Net non-cash contributions (distributions) to unconsolidated entities | 27,880 | 97,281 | 156,075 | ||
Non-cash sale of operating properties and equipment and other assets | 0 | 0 | 48,671 | ||
Non-cash right of use assets recognized due to adoption of ASU 2016-02 | 0 | 150,702 | 0 | ||
Non-cash lease liabilities recognized due to adoption of ASU 2016-02 | 0 | 159,717 | 0 | ||
Homebuilding | |||||
Summary of cash and cash equivalents and restricted cash: | |||||
Cash and cash equivalents | 2,735,213 | [1] | 2,703,986 | [1] | 1,200,832 |
Restricted cash | 21,927 | [1] | 15,211 | [1] | 9,698 |
Lennar Other | |||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||
Unrealized Gain (Loss) on Investments | (680,576) | 0 | 0 | ||
Summary of cash and cash equivalents and restricted cash: | |||||
Cash and cash equivalents | 2,660 | 3,918 | 2,340 | ||
Restricted cash | 0 | 0 | 975 | ||
Financial Services | |||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||
Gain on sale of businesses | (3,811) | (5,014) | (2,368) | ||
Cash flows from investing activities: | |||||
Proceeds from sale of business | 3,327 | 14,978 | 24,446 | ||
Summary of cash and cash equivalents and restricted cash: | |||||
Cash and cash equivalents | 167,021 | 116,171 | 234,113 | ||
Restricted cash | 12,012 | 54,481 | 12,022 | ||
Consolidation/deconsolidation of unconsolidated/consolidated entities, net: | |||||
Financial Services assets | 0 | (217,565) | 0 | ||
Financial Services liabilities | 0 | 115,175 | 0 | ||
Noncontrolling interests | 0 | 102,390 | 0 | ||
Multifamily | |||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||
Gain on sale of interest in unconsolidated entity and other Multifamily gain | (1,167) | (4,617) | (10,865) | ||
Summary of cash and cash equivalents and restricted cash: | |||||
Cash and cash equivalents | 16,850 | 38,963 | 8,711 | ||
Segments Other Than Financial Services | |||||
Consolidation/deconsolidation of unconsolidated/consolidated entities, net: | |||||
Noncontrolling interests | 0 | 12,323 | (8,894) | ||
Inventories | 0 | 95,476 | 187,506 | ||
Receivables | 0 | 0 | 102,959 | ||
Operating properties and equipment and other assets | 0 | 6,870 | 53,412 | ||
Investments in unconsolidated entities | 0 | (68,290) | 67,925 | ||
Notes payable | 0 | (44,924) | (383,212) | ||
Other liabilities | 0 | (1,455) | (19,696) | ||
Warehouse Repurchase Facility | |||||
Cash flows from financing activities: | |||||
Net (repayments) borrowings under lines of credit | $ 262,107 | $ (281,835) | $ 166,552 | ||
[1] | Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its consolidated balance sheets the assets of consolidated variable interest entities ("VIEs") that are owned by the consolidated VIEs and liabilities of consolidated VIEs as to which there is no recourse against the Company. As of November 30, 2021, total assets include $1.1 billion related to consolidated VIEs of which $60.9 million is included in Homebuilding cash and cash equivalents, $4.4 million in Homebuilding receivables, net, $14.3 million in Homebuilding finished homes and construction in progress, $697.1 million in Homebuilding land and land under development, $239.2 million in Homebuilding consolidated inventory not owned, $1.1 million in Homebuilding investments in unconsolidated entities, $17.4 million in Homebuilding other assets and $80.6 million in Multifamily assets. As of November 30, 2020, total assets include $1.1 billion related to consolidated VIEs of which $32.1 million is included in Homebuilding cash and cash equivalents, $0.1 million in Homebuilding receivables, net, $14.2 million in Homebuilding finished homes and construction in progress, $486.8 million in Homebuilding land and land under development, $426.3 million in Homebuilding consolidated inventory not owned, $1.6 million in Homebuilding investments in unconsolidated entities, $120.6 million in Homebuilding other assets and $39.9 million in Multifamily assets. |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Nov. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Consolidation The accompanying consolidated financial statements include the accounts of Lennar Corporation and all subsidiaries, partnerships and other entities in which Lennar Corporation has a controlling interest and VIEs (see Note 8) in which Lennar Corporation is deemed the primary beneficiary (the "Company"). The Company’s investments in both unconsolidated entities in which a significant, but less than controlling, interest is held and in VIEs in which the Company is not deemed to be the primary beneficiary are accounted for by the equity method. All intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Revenue Recognition Homebuilding revenues and related profits from sales of homes are recognized at the time of the closing of a sale, when title to and possession of the property are transferred to the homebuyer. The Company’s performance obligation, to deliver the agreed-upon home, is generally satisfied in less than one year from the original contract date. Cash proceeds from home closings held in escrow for the Company’s benefit, typically for approximately three to four days, are included in Homebuilding cash and cash equivalents in the Company's consolidated balance sheets. Contract liabilities include customer deposits liabilities related to sold but undelivered homes that are included in other liabilities in the Company's consolidated balance sheets. The Company periodically elects to sell parcels of land to third parties. Cash consideration from land sales is typically due on the closing date, which is generally when performance obligations are satisfied and revenue is recognized as title to and possession of the property are transferred to the buyer. Advertising Costs The Company expenses advertising costs as incurred. Advertising costs were $74.2 million, $72.6 million and $84.3 million for the years ended November 30, 2021, 2020 and 2019, respectively. Share-Based Payments The Company has share-based awards outstanding under the 2016 Equity Incentive Plan (the "Plan"), which provides for the granting of stock options, stock appreciation rights, restricted common stock ("nonvested shares") and other share based awards to officers, associates and directors. The exercise prices of stock options may not be less than the market value of the common stock on the date of the grant. Exercises are permitted in installments determined when options are granted. Each stock option will expire on a date determined at the time of the grant, but not more than 10 years after the date of the grant. The Company accounts for stock option awards and nonvested share awards granted under the Plan based on the estimated grant date fair value. Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Due to the short maturity period of cash equivalents, the carrying amounts of these instruments approximate their fair values. Homebuilding restricted cash consists of customer deposits on home sales held in restricted accounts until title transfers to the homebuyer, as required by the state and local governments in which the homes were sold, as well as funds on deposit to secure and support performance obligations. Financial Services restricted cash consists of upfront deposits and application fees LMF Commercial receives before originating loans and is recognized as income once the loan has been originated, as well as cash held in escrow by the Company’s loan service provider on behalf of customers and lenders and is disbursed in accordance with agreements between the transacting parties. Homebuilding cash and cash equivalents as of November 30, 2021 and 2020 included $940.4 million and $314.3 million, respectively, of cash held in escrow for approximately three days. Receivables At November 30, 2021 and 2020, Homebuilding accounts receivable related primarily to other receivables and rebates. The Company performs ongoing credit evaluations of its customers and generally does not require collateral for accounts receivable. Mortgages and notes receivable arising from the sale of homes and land are generally collateralized by the property sold to the buyer. Allowances are maintained for potential credit losses based on historical experience, present economic conditions and other factors considered relevant by the Company. Balances for the years ended November 30, 2021 and 2020 are noted below: November 30, (In thousands) 2021 2020 Accounts receivable $ 245,004 133,560 Mortgages and notes receivable 247,805 167,909 492,809 301,469 Allowance for credit losses (2,531) (2,798) Receivables, net (1) $ 490,278 298,671 (1) At November 30, 2021, receivables, net included an $85 million short-term loan due from Upward America that was repaid subsequent to November 30, 2021. Inventories Finished homes and construction in progress are included within inventories. Inventories are stated at cost unless the inventory within a community is determined to be impaired, in which case the impaired inventory is written down to fair value. Inventory costs include land, land development and home construction costs, real estate taxes, deposits on land purchase contracts and interest related to development and construction. Construction overhead and selling expenses are expensed as incurred. Homes held-for-sale are classified as inventories until delivered. Land, land development, amenities and other costs are accumulated by specific area and allocated to homes within the respective areas. The Company reviews its inventory for indicators of impairment by evaluating each community during each reporting period. The inventory within each community is categorized as finished homes and construction in progress or land under development based on the development state of the community. There were 1,259 and 1,173 active communities, excluding unconsolidated entities, as of November 30, 2021 and 2020, respectively. If the undiscounted cash flows expected to be generated by a community are less than its carrying amount, an impairment charge is recorded to write down the carrying amount of such community to its estimated fair value. In conducting its review for indicators of impairment on a community level, the Company evaluates, among other things, the margins on homes that have been delivered, margins on homes under sales contracts in backlog, projected margins with regard to future home sales over the life of the community, projected margins with regard to future land sales and the estimated fair value of the land itself. The Company pays particular attention to communities in which inventory is moving at a slower than anticipated absorption pace and communities whose average sales price and/or margins are trending downward and are anticipated to continue to trend downward. From this review, the Company identifies communities in which to assess if the carrying values exceed their undiscounted projected cash flows. The Company estimates the fair value of its communities using a discounted cash flow model. The projected cash flows for each community are significantly impacted by estimates related to market supply and demand, product type by community, homesite sizes, sales pace, sales prices, sales incentives, construction costs, sales and marketing expenses, the local economy, competitive conditions, labor costs, costs of materials and other factors for that particular community. Every division evaluates the historical performance of each of its communities as well as current trends in the market and economy impacting the community and its surrounding areas. These trends are analyzed for each of the estimates listed above. Each of the homebuilding markets in which the Company operates is unique, as homebuilding has historically been a local business driven by local market conditions and demographics. Each of the Company’s homebuilding markets has specific supply and demand relationships reflective of local economic conditions. The Company’s projected cash flows are impacted by many assumptions. Some of the most critical assumptions in the Company’s cash flow model are projected absorption pace for home sales, sales prices and costs to build and deliver homes on a community by community basis. In order to arrive at the assumed absorption pace for home sales and the assumed sales prices included in the Company’s cash flow model, the Company analyzes its historical absorption pace and historical sales prices in the community and in other comparable communities in the geographical area. In addition, the Company considers internal and external market studies and places greater emphasis on more current metrics and trends, which generally include, but are not limited to, statistics and forecasts on population demographics and on sales prices in neighboring communities, unemployment rates and availability and sales prices of competing product in the geographical area where the community is located as well as the absorption pace realized in its most recent quarters and the sales prices included in the Company's current backlog for such communities. Generally, if the Company notices a variation from historical results over a span of two fiscal quarters, the Company considers such variation to be the establishment of a trend and adjusts its historical information accordingly in order to develop assumptions on the projected absorption pace and sales prices in the cash flow model for a community. In order to arrive at the Company’s assumed costs to build and deliver homes, the Company generally assumes a cost structure reflecting contracts currently in place with its vendors adjusted for any anticipated cost reduction initiatives or increases in cost structure. Those costs assumed are used in the cash flow model for the Company’s communities. Since the estimates and assumptions included in the Company’s cash flow models are based upon historical results and projected trends, they do not anticipate unexpected changes in market conditions or strategies that may lead the Company to incur additional impairment charges in the future. The determination of fair value requires discounting the estimated cash flows at a rate the Company believes a market participant would determine to be commensurate with the inherent risks associated with the assets and related estimated cash flow streams. The discount rate used in determining each asset’s fair value depends on the community’s projected life and development stage. The Company estimates the fair value of inventory evaluated for impairment based on market conditions and assumptions made by management at the time the inventory is evaluated, which may differ materially from actual results if market conditions or assumptions change. For example, changes in market conditions and other specific developments or changes in assumptions may cause the Company to re-evaluate its strategy regarding previously impaired inventory, as well as inventory not currently impaired but for which indicators of impairment may arise if market deterioration occurs, and certain other assets that could result in further valuation adjustments and/or additional write-offs of option deposits and pre-acquisition costs due to abandonment of those options contracts. The table below summarizes communities reviewed for indicators of impairment and communities with valuation adjustments recorded: At November 30, Communities with valuation adjustments # of communities with potential indicator of impairment # of communities Fair Value Valuation Adjustments 2021 4 1 $ 5,267 $ 11,849 2020 10 16 79,734 44,811 The table below summarizes the most significant unobservable inputs used in the Company's discounted cash flow model to determine the fair value of its communities for which the Company recorded valuation adjustments during the years ended November 30, 2021 and 2020: Years Ended November 30, 2021 2020 Unobservable inputs Range Average selling price $635,000 $201,000 - $970,000 Absorption rate per quarter (homes) 11 3 - 15 Discount rate 20% 20% The Company also has access to land inventory through option contracts, which generally enables the Company to defer acquiring portions of properties owned by third parties (including land funds) and unconsolidated entities until it has determined whether to exercise its option. A majority of the Company’s option contracts require a non-refundable cash deposit or irrevocable letter of credit based on a percentage of the purchase price of the land. The Company’s option contracts sometimes include price adjustment provisions, which adjust the purchase price of the land to its approximate fair value at the time of acquisition or are based on the fair value at the time of takedown. In determining whether to walk away from an option contract, the Company evaluates the option primarily based upon its expected cash flows from the property under option. If the Company intends to walk away from an option contract, it records a charge to earnings in the period such decision is made for the deposit amount and any related pre-acquisition costs associated with the option contract. Some option contracts contain a predetermined take-down schedule for the optioned land parcels. However, in almost all instances, the Company is not required to purchase land in accordance with those take-down schedules. In substantially all instances, the Company has the right and ability to not exercise its option and forfeit its deposit without further penalty, other than termination of the option and loss of any unapplied portion of its deposit and pre-acquisition costs. Therefore, in substantially all instances, the Company does not consider the take-down price to be a firm contractual obligation. When the Company does not intend to exercise an option, it writes off any unapplied deposit and pre-acquisition costs associated with the option contract. Investments in Unconsolidated Entities The Company evaluates the long-lived assets in unconsolidated entities for indicators of impairment during each reporting period. If a valuation adjustment is recorded by an unconsolidated entity related to its assets, the Company generally uses a discount rate between 10% and 20%, subject to the perceived risks associated with the community’s cash flow streams relative to its inventory or operating assets. The Company’s proportionate share of a valuation adjustment is reflected in the Company's Homebuilding, Multifamily or Lennar Other equity in earnings (loss) from unconsolidated entities with a corresponding decrease to its Homebuilding, Multifamily or Lennar Other investment in unconsolidated entities. Additionally, the Company evaluates if a decrease in the value of an investment below its carrying value is other-than-temporary. This evaluation includes certain critical assumptions made by management: (1) projected future distributions from the unconsolidated entities, (2) discount rates applied to the future distributions and (3) various other factors, which include age of the venture, relationships with the other partners and banks, general economic market conditions, land status and liquidity needs of the unconsolidated entity. If the decline in the fair value of the investment is other-than-temporary, then these losses are included in Homebuilding other income, net, Multifamily other gain (loss) or Lennar Other other gain (loss). The Company tracks its share of cumulative earnings and distributions of its joint ventures ("JVs"). For purposes of classifying distributions received from JVs in the Company’s consolidated statements of cash flows, cumulative distributions are treated as returns on capital to the extent of cumulative earnings and included in the Company’s consolidated statements of cash flows as operating activities. Cumulative distributions in excess of the Company’s share of cumulative earnings are treated as returns of capital and included in the Company’s consolidated statements of cash flows as cash from investing activities. Variable Interest Entities GAAP requires the assessment of whether an entity is a VIE and, if so, if the Company is the primary beneficiary at the inception of the entity or at a reconsideration event. Additionally, GAAP requires the consolidation of VIEs in which an enterprise has a controlling financial interest. A controlling financial interest will have both of the following characteristics: (a) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company’s variable interest in VIEs may be in the form of (1) equity ownership, (2) contracts to purchase assets, (3) management and development agreements between the Company and a VIE, (4) loans provided by the Company to a VIE or other partner and/or (5) guarantees provided by members to banks and other third parties. The Company examines specific criteria and uses its judgment when determining if it is the primary beneficiary of a VIE. Factors considered in determining whether the Company is the primary beneficiary include risk and reward sharing, experience and financial condition of other partner(s), voting rights, involvement in day-to-day capital and operating decisions, representation on a VIE’s executive committee, existence of unilateral kick-out rights or voting rights, level of economic disproportionality, if any, between the Company and the other partner(s) and contracts to purchase assets from VIEs. The determination whether an entity is a VIE and, if so, whether the Company is the primary beneficiary may require it to exercise significant judgment. Generally, all major decision making in the Company’s joint ventures is shared among all partners. In particular, business plans and budgets are generally required to be unanimously approved by all partners. Usually, management and other fees earned by the Company are nominal and believed to be at market and there is no significant economic disproportionality between the Company and other partners. Generally, the Company purchases less than a majority of the JV’s assets and the purchase prices under its option contracts are believed to be at market. Generally, Homebuilding and Multifamily unconsolidated entities become VIEs and consolidate when the other partner(s) lack the intent and financial wherewithal to remain in the entity. As a result, the Company continues to fund operations and debt paydowns through partner loans or substituted capital contributions. Goodwill Goodwill is recorded with acquisitions of businesses when the purchase price of the business exceeds the fair value of the net tangible and identifiable assets acquired. In accordance with ASC Topic 350, Intangibles-Goodwill and Other ("ASC 350"), the Company evaluates goodwill for potential impairment on at least an annual basis. The Company has the option to perform a qualitative or quantitative assessment to determine whether the fair value of a reporting unit exceeds its carrying value. Qualitative factors may include, but are not limited to economic conditions, industry and market considerations, cost factors, overall financial performance of the reporting units and other entity and reporting unit specific events. The fair value estimate is derived through various valuation methods, including the use of discounted expected future cash flows of each reporting unit. The expected future cash flows for each segment are significantly impacted by current market conditions. If these market conditions and resulting expected future cash flows for each reporting unit decline significantly, the actual results for each segment could differ from the Company's estimate, which would cause goodwill to be impaired. The annual goodwill impairment analysis was performed as of September 30, 2021 and no impairment was recorded. Operating Properties and Equipment Operating properties and equipment are recorded at cost and are included in other assets in the consolidated balance sheets. The assets are depreciated over their estimated useful lives using the straight-line method. At the time operating properties and equipment are disposed of, the asset and related accumulated depreciation are removed from the accounts and any resulting gain or loss is credited or charged to earnings. The estimated useful life for operating properties is 30 years, for furniture, fixtures and equipment is two Operating properties and equipment are included in Homebuilding other assets in the consolidated balance sheets and were as follows: November 30, (In thousands) 2021 2020 Operating properties (1) $ 309,367 386,646 Leasehold improvements 56,620 57,084 Furniture, fixtures and equipment 172,774 145,307 538,761 589,037 Accumulated depreciation and amortization (198,855) (177,519) $ 339,906 411,518 (1) Operating properties primarily include solar systems, rental operations and commercial properties. Investment Securities The Company holds investment securities classified as available-for-sale or held-to-maturity. Available-for-sale securities are recorded at fair value. Any unrealized holding gains or losses on available-for-sale securities are reported as accumulated other comprehensive gain or loss, which is a separate component of stockholders’ equity, net of tax, until realized. Securities classified as held-to-maturity are carried at amortized cost because they are purchased with the intent and ability to hold to maturity. At November 30, 2021 and 2020, the Financial Services segment had investment securities classified as held-to-maturity totaling $157.8 million and $164.2 million, respectively, which consist mainly of commercial mortgage-backed securities ("CMBS"), corporate debt obligations, U.S. government agency obligations, certificates of deposit and U.S. treasury securities that mature at various dates, mainly within three years. At November 30, 2021 and 2020, the Lennar Other segment had investment securities classified as held-for-sale totaling $41.7 million and $53.5 million, respectively. Additionally, the Lennar Other segment had investments in equity securities with a readily determinable fair value (publicly traded common stock), not accounted for under the equity method, that are recorded at fair value with unrealized gains and losses included in earnings. For equity securities without a readily determinable fair value, the investment is recorded at cost, less any impairment, plus or minus adjustments related to observable transactions for the same or similar securities, with unrealized gains and losses included in earnings. The Lennar Other segment had investments in equity securities of $1.0 billion and $68.8 million, as of November 30, 2021 and 2020, respectively. For equity method investments in the Lennar Other segment, the Company records the investment as Lennar Other investments in unconsolidated entities. The Company regularly reviews its investments in unconsolidated entities to determine whether there is a decline in fair value below book value. If there is a decline that is other-than-temporary, the investment is written down to fair value. There was no impairment recorded during the years ended November 30, 2021 and 2020. Interest and Real Estate Taxes Interest and real estate taxes attributable to land and homes are capitalized as inventory costs while they are being actively developed. Interest related to homebuilding and land, including interest costs relieved from inventories, is included in costs of homes sold and costs of land sold. Interest expense related to the Financial Services and Multifamily operations is included in its costs and expenses. During the years ended November 30, 2021, 2020 and 2019, interest incurred by the Company’s homebuilding operations related to homebuilding debt was $275.1 million, $353.4 million and $422.7 million, respectively; interest capitalized into inventories was $254.9 million, $331.0 million and $405.1 million, respectively. Interest expense was included in costs of homes sold, costs of land sold and other interest expense as follows: Years Ended November 30, (In thousands) 2021 2020 2019 Interest expense in costs of homes sold $ 342,756 349,109 371,821 Interest expense in costs of land sold 2,475 2,594 5,554 Other interest expense (1) 20,142 22,401 17,620 Total interest expense $ 365,373 374,104 394,995 (1) Included in Homebuilding other income (expense), net. Income Taxes The Company records income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and attributable to operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which the temporary differences are expected to be recovered or paid. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period when the changes are enacted. Interest related to unrecognized tax benefits is recognized in the financial statements as a component of income tax expense. A reduction of the carrying amounts of deferred tax assets by a valuation allowance is required if, based on the available evidence, it is more likely than not that such assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed each reporting period by the Company based on the consideration of all available positive and negative evidence using a "more-likely-than-not" standard with respect to whether deferred tax assets will be realized. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, actual earnings, forecasts of future profitability, the duration of statutory carryforward periods, the Company’s experience with loss carryforwards not expiring unused and tax planning alternatives. Based on the analysis of positive and negative evidence, the Company believed that there was enough positive evidence for the Company to conclude that it was more likely than not that the Company would realize the majority of its deferred tax assets. As of November 30, 2021 and 2020, the Company's net deferred tax assets included a valuation allowance of $2.7 million and $4.4 million, respectively. See Note 5 for additional information. Other Liabilities Reflected within the consolidated balance sheets, the other liabilities balance as of November 30, 2021 and 2020, included accrued interest payable, product warranty (as noted below), accrued bonuses, accrued wages and benefits, lease liabilities, deferred income, customer deposits, income taxes payable, and other accrued liabilities. Product Warranty Warranty and similar reserves for homes are established at an amount estimated to be adequate to cover potential costs for materials and labor with regard to warranty-type claims expected to be incurred subsequent to the delivery of a home. Reserves are determined based on historical data and trends with respect to similar product types and geographical areas. The Company regularly monitors the warranty reserve and makes adjustments to its pre-existing warranties in order to reflect changes in trends and historical data as information becomes available. Warranty reserves are included in Homebuilding other liabilities in the consolidated balance sheets. The activity in the Company’s warranty reserve was as follows: Years Ended November 30, (In thousands) 2021 2020 Warranty reserve, beginning of year $ 341,765 294,138 Warranties issued 217,641 191,311 Adjustments to pre-existing warranties from changes in estimates (1) 29,436 29,461 Payments (211,821) (173,145) Warranty reserve, end of year $ 377,021 341,765 (1) The adjustments to pre-existing warranties from changes in estimates during the years ended November 30, 2021 and 2020 primarily related to specific claims in certain of the Company's homebuilding communities and other adjustments. Self-Insurance Certain insurable risks such as construction defects, general liability, medical and workers’ compensation are self-insured by the Company up to certain limits. Undiscounted accruals for claims under the Company’s self-insurance program are based on claims filed and estimates for claims incurred but not yet reported. The Company’s self-insurance reserve, net of expected recoveries, as of November 30, 2021 and 2020 was $169.1 million and $125.4 million which is included in Homebuilding other liabilities. Amounts incurred in excess of the Company's self-insurance occurrence or aggregate retention limits are covered by insurance up to the Company's purchased coverage levels. The Company's insurance policies are maintained with highly-rated underwriters for whom the Company believes counterparty default risk is not significant. Earnings per Share Basic earnings per share is computed by dividing net earnings attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in earnings of the Company. All outstanding nonvested shares that contain non-forfeitable rights to dividends or dividend equivalents that participate in undistributed earnings with common stock are considered participating securities and are included in computing earnings per share pursuant to the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating securities according to dividends or dividend equivalents and participation rights in undistributed earnings. The Company’s restricted common stock ("nonvested shares") are considered participating securities. Preferred Stock The Company is authorized to issue 500,000 shares of preferred stock with a par value of $10 per share and 100 million shares of participating preferred stock with a par value of $0.10 per share. No shares of preferred stock or participating preferred stock have been issued as of November 30, 2021 and 2020. Common Stock During the year ended November 30, 2021, the Company’s Class A and Class B common stockholders received a per share annual dividend of $1.00. During the years ended 2020 and 2019, the Company’s Class A and Class B common stockholders received a per share annual dividend of $0.625 and $0.16, respectively. The only significant difference between the Class A common stock and Class B common stock is that Class A common stock entitles holders to one vote per share and the Class B common stock entitles holders to ten votes per share. As of November 30, 2021, Stuart Miller, the Company’s Executive Chairman, directly owned, or controlled through family-owned entities, shares of Class A and Class B common stock, which represented approximately 35% voting power of the Company’s stock. In January 2021, the Company's Board of Directors authorized a stock repurchase program, which replaced a January 2019 stock repurchase program, under which the Company was authorized to purchase up to the lesser of $1 billion in value, or 25 million in shares, of the Company’s outstanding Class A or Class B common stock. The repurchase authority has no expiration date. In October 2021, the Board of Directors authorized an increase to the stock repurchase program to enable the Company to repurchase up to the lesser of an additional $1 billion in value, or 25 million in shares, of the Company's outstanding Class A or Class B common stock. The repurchase authority has no expiration date. Shortly after the new authorization, the January 2021 stock repurchase program was completed as the Company had purchased |
Operating And Reporting Segment
Operating And Reporting Segments | 12 Months Ended |
Nov. 30, 2021 | |
Segment Reporting [Abstract] | |
Operating And Reporting Segments | Operating and Reporting Segments The Company's homebuilding operations construct and sell homes primarily for first-time, move-up and active adult homebuyers primarily under the Lennar brand name. In addition, the Company's homebuilding operations purchase, develop and sell land to third parties. The Company's chief operating decision makers manage and assess the Company's performance at a regional level. Therefore, the Company performed an assessment of its operating segments in accordance with ASC 280, Segment Reporting , and determined that the following are its operating and reportable segments: Homebuilding segments: (1) East (2) Central (3) Texas (4) West (5) Financial Services (6) Multifamily (7) Lennar Other The assets and liabilities related to the Company’s segments were as follows: (In thousands) November 30, 2021 Assets: Homebuilding Financial Multifamily Lennar Total Cash and cash equivalents $ 2,735,213 167,021 16,850 2,660 2,921,744 Restricted cash 21,927 12,012 — — 33,939 Receivables, net (1) 490,278 708,165 98,405 — 1,296,848 Inventories 18,715,304 — 454,093 — 19,169,397 Loans held-for-sale (2) — 1,636,351 — — 1,636,351 Investments in equity securities (3) 1,006,599 1,006,599 Investments available-for-sale (4) — — — 41,654 41,654 Loans held-for-investments, net — 44,582 — — 44,582 Investments held-to-maturity — 157,808 — — 157,808 Investments in unconsolidated entities 972,084 — 654,029 346,270 1,972,383 Goodwill 3,442,359 189,699 — — 3,632,058 Other assets 1,090,654 48,729 88,370 66,662 1,294,415 $ 27,467,819 2,964,367 1,311,747 1,463,845 33,207,778 Liabilities: Notes and other debts payable, net $ 4,652,338 1,726,026 — — 6,378,364 Accounts payable and other liabilities 5,217,904 180,317 288,930 145,981 5,833,132 $ 9,870,242 1,906,343 288,930 145,981 12,211,496 (In thousands) November 30, 2020 Assets: Homebuilding Financial Multifamily Lennar Total Cash and cash equivalents $ 2,703,986 116,171 38,963 3,918 2,863,038 Restricted cash 15,211 54,481 — — 69,692 Receivables, net (1) 298,671 552,779 86,629 — 938,079 Inventories 16,925,228 — 249,920 — 17,175,148 Loans held-for-sale (2) — 1,490,105 — — 1,490,105 Investments in equity securities (3) — — — 68,771 68,771 Investments available-for-sale (4) — — — 53,497 53,497 Loans held-for-investments, net — 72,626 — — 72,626 Investments held-to-maturity — 164,230 — — 164,230 Investments in unconsolidated entities 953,177 — 724,647 387,097 2,064,921 Goodwill 3,442,359 189,699 — — 3,632,058 Other assets 1,190,793 68,027 75,749 8,443 1,343,012 $ 25,529,425 2,708,118 1,175,908 521,726 29,935,177 Liabilities: Notes and other debts payable, net $ 5,955,758 1,463,919 — 1,906 7,421,583 Accounts payable and other liabilities 3,969,893 180,329 252,911 11,060 4,414,193 $ 9,925,651 1,644,248 252,911 12,966 11,835,776 (1) Receivables, net for Financial Services primarily related to loans sold to investors for which the Company had not yet been paid as of November 30, 2021 and November 30, 2020, respectively. (2) Loans held-for-sale related to unsold residential and commercial loans carried at fair value. (3) Investments in equity securities include investments of $100.1 million and $68.8 million without readily available fair values as of November 30, 2021 and November 30, 2020, respectively. (4) Investments available-for-sale are carried at fair value with changes in fair value recorded as a component of accumulated other comprehensive income (loss) on the consolidated balance sheets. Financial information relating to the Company’s segments was as follows: Year ended November 30, 2021 (In thousands) Homebuilding Financial Multifamily Lennar Corporate and Total Revenues $ 25,545,242 898,745 665,232 21,457 — 27,130,676 Operating earnings 5,031,762 491,014 21,453 733,035 — 6,277,264 Corporate general and administrative expenses — — — — (398,381) (398,381) Charitable foundation contribution — — — — (59,825) (59,825) Earnings before income taxes 5,031,762 491,014 21,453 733,035 (458,206) 5,819,058 Year ended November 30, 2020 (In thousands) Homebuilding Financial Multifamily Lennar Corporate and Total Revenues $ 20,981,136 890,311 576,328 41,079 — 22,488,854 Operating earnings (loss) 2,988,907 480,952 22,681 (10,334) — 3,482,206 Corporate general and administrative expenses — — — — (333,446) (333,446) Charitable foundation contribution — — — — (24,972) (24,972) Earnings (loss) before income taxes 2,988,907 480,952 22,681 (10,334) (358,418) 3,123,788 Year ended November 30, 2019 (In thousands) Homebuilding Financial Multifamily Lennar Corporate and Total Revenues $ 20,793,216 824,810 604,700 36,835 — 22,259,561 Operating earnings 2,502,905 224,642 16,390 31,469 — 2,775,406 Corporate general and administrative expenses — — — — (321,188) (321,188) Charitable foundation contribution — — — — (19,926) (19,926) Earnings before income taxes 2,502,905 224,642 16,390 31,469 (341,114) 2,434,292 (1) Operating loss for Lennar Other for the year ended November 30, 2020 included a $25.0 million write-down of assets held by Rialto legacy funds because of the disruption in the capital markets as a result of COVID-19 and the economic shutdown. (2) Corporate and unallocated expenses primarily represent costs of operations at the Company's corporate headquarters in Miami. These operations include the Company's executive offices, information technology, treasury, corporate accounting and tax, legal, internal audit and human resources. Also included are property expenses related to the leases of corporate offices, data processing, general corporate expenses and charitable foundation contribution to the Lennar Foundation. Homebuilding Segments Information about homebuilding activities in states which are not economically similar to other states in the same geographic area is grouped under "Homebuilding Other," which is not considered a reportable segment. Evaluation of segment performance is based primarily on operating earnings (loss) before income taxes. Operations of the Company’s homebuilding segments primarily include the construction and sale of single-family attached and detached homes, as well as the purchase, development and sale of residential land directly and through the Company’s unconsolidated entities. Operating earnings (loss) for the homebuilding segments consist of revenues generated from the sales of homes and land, equity in earnings (loss) from unconsolidated entities and other income (expense), net, less the cost of homes sold and land sold, selling, general and administrative expenses incurred by the segment. The Company’s reportable homebuilding segments and all other homebuilding operations not required to be reported separately, have homebuilding divisions located in: East: Florida, New Jersey , Pennsylvania and South Carolina Central: Georgia, Illinois, Indiana, Maryland, Minnesota, North Carolina, Tennessee and Virginia Texas: Texas West: Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah and Washington Other: Urban divisions and other homebuilding related investments primarily in California, including Five Point Holdings, LLC ("FivePoint") The assets related to the Company's homebuilding segments were as follows: (In thousands) East Central Texas West Other Corporate and Total Balance at November 30, 2021 $ 5,854,057 3,782,847 2,801,192 11,171,741 1,443,163 2,414,819 27,467,819 Balance at November 30, 2020 5,308,114 3,438,600 2,150,916 10,504,374 1,301,618 2,825,803 25,529,425 Financial information relating to the Company’s homebuilding segments was as follows: Year ended November 30, 2021 (In thousands) East Central Texas West Other Total Revenues $ 6,870,944 4,826,535 3,241,321 10,563,756 42,686 25,545,242 Operating earnings (loss) 1,455,432 720,419 730,465 2,192,446 (67,000) 5,031,762 Interest expense 90,314 58,899 28,764 176,633 10,763 365,373 Depreciation and amortization 24,531 16,118 9,821 49,691 1,238 101,399 Net additions to (disposals of) operating properties and equipment 219 239 (9) 26,375 14,950 41,774 Year ended November 30, 2020 (In thousands) East Central Texas West Other Total Revenues $ 5,715,028 4,093,693 2,709,681 8,437,167 25,567 20,981,136 Operating earnings (loss) 933,297 482,929 421,594 1,241,494 (90,407) 2,988,907 Interest expense 93,245 58,777 29,901 178,498 13,683 374,104 Depreciation and amortization 21,504 13,659 9,366 50,316 249 95,094 Net additions to (disposals of) operating properties 955 (11,370) 712 165,869 (32) 156,134 Year ended November 30, 2019 (In thousands) East Central Texas West Other Total Homebuilding Revenues $ 5,717,858 4,120,085 2,578,962 8,227,304 149,007 20,793,216 Operating earnings (loss) 830,619 431,372 285,874 1,050,850 (95,810) 2,502,905 Interest expense 96,569 64,104 37,144 183,906 13,272 394,995 Depreciation and amortization 20,623 11,356 8,395 45,456 369 86,199 Net additions to (disposals of) operating properties and equipment (31,338) 89 950 63,803 (1,214) 32,290 Financial Services Operations of the Financial Services segment include primarily mortgage financing, title and closing services primarily for buyers of the Company’s homes. It also includes originating and selling into securitizations commercial mortgage loans through its LMF Commercial business. The Financial Services segment sells substantially all of the loans it originates within a short period of time in the secondary mortgage market, the majority of which are sold on a servicing released, non-recourse basis. After the loans are sold, the Company retains potential liability for possible claims by purchasers that it breached certain limited industry standard representations and warranties in the loan sale agreements. Financial Services’ operating earnings consist of revenues generated primarily from mortgage financing, title and closing services, and property and casualty insurance, less the cost of such services and certain selling, general and administrative expenses incurred by the segment. The Financial Services segment operates generally in the same states as the Company’s homebuilding operations as well as in other states. At November 30, 2021, the Financial Services segment had warehouse facilities, all of which were 364-day repurchase facilities and were used to fund residential mortgages or commercial mortgages for LMF Commercial as follows: (In thousands) Maximum Aggregate Commitment Residential facilities maturing: December 2021 (1) $ 500,000 April 2022 700,000 July 2022 600,000 October 2022 500,000 Total - Residential facilities $ 2,300,000 LMF Commercial facilities maturing: December 2021 (1) $ 400,000 November 2022 100,000 July 2023 50,000 Total - LMF Commercial facilities $ 550,000 Total $ 2,850,000 (1) Subsequent to November 30, 2021, the maturity date was extended to December 2022. The Financial Services segment uses the residential warehouse 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, which are guaranteed by Lennar Corporation, finance LMF Commercial loan originations and securitization activities and are 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: November 30, (In thousands) 2021 2020 Borrowings under the residential facilities $ 1,482,258 1,185,797 Collateral under the residential facilities 1,539,641 1,231,619 Borrowings under the LMF Commercial facilities 96,294 124,617 If the facilities are not renewed or replaced, the borrowings under the lines of credit will be repaid by selling the mortgage loans held-for-sale to investors and by collecting receivables on loans sold but not yet paid for. Without the facilities, the Financial Services segment would have to use cash from operations and other funding sources to finance its lending activities. Substantially all of the residential loans the Financial Services segment originates are sold within a short period in the secondary mortgage market on a servicing released, non-recourse basis. After the loans are sold, the Company retains potential liability for possible claims by purchasers that it breached certain limited industry-standard representations and warranties in the loan sale agreements. Purchasers sometimes try to defray losses by purporting to have found inaccuracies related to sellers’ representations and warranties in particular loan sale agreements. Mortgage investors could seek to have the Company buy back mortgage loans or compensate them for losses incurred on mortgage loans that the Company has sold based on claims that the Company breached its limited representations or warranties. The Company’s mortgage operations have established accruals for possible losses associated with mortgage loans previously originated and sold to investors. The Company establishes accruals for such possible losses based upon, among other things, an analysis of repurchase requests received, an estimate of potential repurchase claims not yet received and actual past repurchases and losses through the disposition of affected loans as well as previous settlements. While the Company believes that it has adequately reserved for known losses and projected repurchase requests, given the volatility in the residential mortgage industry and the uncertainty regarding the ultimate resolution of these claims, if either actual repurchases or the losses incurred resolving those repurchases exceed the Company’s expectations, additional recourse expense may be incurred. Loan origination liabilities are included in Financial Services’ liabilities in the Company's consolidated balance sheets. LMF Commercial - loans held-for-sale LMF Commercial originated commercial loans as follows: November 30, (Dollars in thousands) 2021 2020 Originations (1) $ 770,107 703,777 Sold $ 931,023 705,089 Securitizations 6 5 (1) During both the year ended November 30, 2021 and 2020 all the commercial loans originated were recorded as loans held-for-sale, which are held at fair value. Investments held-to-maturity At November 30, 2021 and 2020, the Financial Services segment held commercial mortgage-backed securities ("CMBS"). These securities are classified as held-to-maturity based on its intent and ability to hold the securities until maturity and changes in estimated cash flows are reviewed periodically to determine if an other-than-temporary impairment has occurred. Based on the segment’s assessment, no impairment charges were recorded during the years ended November 30, 2021 or 2020. The Company has financing agreements to finance CMBS that have been purchased as investments by the Financial Services segment. Details related to Financial Services' CMBS were as follows: (Dollars in thousands) November 30, 2021 November 30, 2020 Carrying value $ 157,808 164,230 Outstanding debt, net of debt issuance costs $ 147,474 153,505 Incurred interest rate 3.4 % 3.4 % November 30, 2021 Discount rates at purchase 6% — 84% Coupon rates 2.0% — 5.3% Distribution dates October 2027 — December 2028 Stated maturity dates October 2050 — December 2051 Multifamily The Company is actively involved, primarily through unconsolidated entities, in the development, construction and property management of multifamily rental properties. The Multifamily segment focuses on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S. markets. Operations of the Multifamily segment include revenues generated from land sales, revenue from construction activities and management fees generated from joint ventures, and equity in earnings from unconsolidated entities, less the cost of land sold, expenses related to construction activities and general and administrative expenses. Lennar Other Lennar Other primarily includes strategic investments in technology companies, primarily managed by the Company's LENX subsidiary, and fund interests the Company retained when it sold the Rialto asset and investment management platform. Operations of the Lennar Other segment include revenues generated primarily from the Company's share of carried interests in the Rialto fund investments retained after the sale of Rialto's asset and investment management platform, along with equity in earnings (loss) from the Rialto fund investments and strategic technology investments, gains (losses) from investments in equity securities and other income (expense), net from the remaining assets related to the Company's former Rialto segment. During the year ended November 30, 2021, the Company completed the sale of the Company's residential solar business to Sunnova Energy International Inc. ("Sunnova") for shares in Sunnova. The Company recorded a gain of $153.0 million upon the closing of the sale. The calculation of the gain included the fair value of 3.1 million shares in initial consideration received at closing and the fair value of potential shares to be received upon achievement of earnouts. The significant unobservable fair value assumptions used in the calculation were a terminal value multiple of 3 and a 15% discount rate. The fair value of the earnouts was also based on the probability of achieving full or partial earnouts. The investments in Opendoor Technologies, Inc. ("Opendoor"), Sunnova, Hippo Holdings, Inc. ("Hippo"), SmartRent, Inc. ("SmartRent") and Blend Labs, Inc. ("Blend") 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. For the years ended November 30, 2020 and 2019, there were no mark to market gains on our strategic investments in technology companies. The following is a detail of Lennar Other realized and unrealized gains (losses): Year Ended November 30, (In thousands) 2021 Opendoor (OPEN) mark to market $ 239,312 Hippo (HIPO) mark to market 207,634 SmartRent (SMRT) mark to market 79,483 Sunnova (NOVA) mark to market (8,883) Blend Labs (BLND) mark to market (6,744) Gain on sale of solar business 158,069 Other realized gains 11,705 $ 680,576 During the year ended November 30, 2021, Opendoor, Hippo, SmartRent and Blend began trading and the Company began to mark to market the Company's share holdings in the public entities. The mark to market recognition was due to the entities in which the Company holds the investments going public and the loss of a contractual right to a board seat, where applicable, during the year ended November 30, 2021 and the investments now being accounted for as investments in equity securities which are held at fair value and the changes in fair value are recognized through earnings. As of November 30, 2020, the investments, other than SmartRent since the first investment was made in fiscal 2021, were included in the Company's investments in unconsolidated entities and were accounted for using the equity method. In addition, as previously noted, Doma Holdings, Inc. ("Doma") went public during the third quarter of 2021. Doma is an investment that continues to be accounted for under the equity method due to the Company's significant ownership interest which allows the Company to exercise significant influence. As of November 30, 2021, the Company owns approximately 25.0% of Doma and the carrying amount of the Company's investment is $53.7 million. Each reportable segment follows the same accounting policies described in Note 1—"Summary of Significant Accounting Policies" to the consolidated financial statements. Operational results of each segment are not necessarily indicative of the results that would have occurred had the segment been an independent, stand-alone entity during the periods presented. |
Investments In Unconsolidated E
Investments In Unconsolidated Entities | 12 Months Ended |
Nov. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments In Unconsolidated Entities | Investments in Unconsolidated Entities Homebuilding Unconsolidated Entities The investments in Company's Homebuilding unconsolidated entities were as follows: November 30, (In thousands) 2021 2020 Investments in unconsolidated entities (1) (2) $ 972,084 953,177 Underlying equity in unconsolidated entities' net assets (1) 1,301,719 1,269,701 (1) The basis difference was primarily as a result of the Company contributing its investment in three strategic joint ventures with a higher fair value than book value for an investment in the FivePoint entity and deferring equity in earnings on land sales to the Company. (2) Included in the Company's recorded investments in Homebuilding unconsolidated entities is the Company's 40% ownership of FivePoint. As of November 30, 2021 and 2020, the carrying amount of the Company's investment was $381.6 million and $392.1 million, respectively. The Company’s partners generally are unrelated homebuilders, land owners/developers and financial or other strategic partners. The unconsolidated entities follow accounting principles that are in all material respects the same as those used by the Company. The Company shares in the profits and losses of these unconsolidated entities generally in accordance with its ownership interests. In many instances, the Company is appointed as the day-to-day manager under the direction of a management committee that has shared powers among the partners of the unconsolidated entities and the Company receives management fees and/or reimbursement of expenses for performing this function. The Company and/or its partners sometimes obtain options or enter into other arrangements under which the Company can purchase portions of the land held by the unconsolidated entities. Option prices are generally negotiated prices that approximate fair value when the Company receives the options. The details of the activity was as follows: Years Ended November 30, (In thousands) 2021 2020 2019 Land sales revenues (1) $ 57,944 99,935 82,966 Management fees and reimbursement of expenses, net of deferrals 16,464 2,363 2,716 (1) The Company does not include in its Homebuilding equity in loss from unconsolidated entities its pro-rata share of unconsolidated entities’ earnings resulting from land sales to its homebuilding divisions. Instead, the Company accounts for those earnings as a reduction of the cost of purchasing the land from the unconsolidated entities. This in effect defers recognition of the Company’s share of the unconsolidated entities’ earnings related to these sales until the Company delivers a home and title passes to a third-party homebuyer. The total debt of the Homebuilding unconsolidated entities in which the Company has investments was $1.2 billion and $1.1 billion as of November 30, 2021 and 2020, respectively, of which the Company's maximum recourse exposure was $5.3 million and $4.9 million as of November 30, 2021 and 2020, respectively. In most instances in which the Company has guaranteed debt of an unconsolidated entity, the Company’s partners have also guaranteed that debt and are required to contribute their share of the guarantee payments. In a repayment guarantee, the Company and its venture partners guarantee repayment of a portion or all of the debt in the event of default before the lender would have to exercise its rights against the collateral. In a completion guarantee, the Company and its venture partners have been required to give guarantees of completion to the lenders. Those completion guarantees may require that the guarantors complete the construction of the improvements for which the financing was obtained. As of November 30, 2021 and 2020, the Homebuilding segment's unconsolidated entities had non-recourse debt with completion guarantees of $241.0 million and $183.3 million, respectively. If the Company is required to make a payment under any guarantee, the payment would generally constitute a capital contribution or loan to the Homebuilding unconsolidated entity and increase the Company's investment in the unconsolidated entity and its share of any funds the entity distributes. As of both November 30, 2021 and 2020, the fair values of the repayment, maintenance guarantees and completion guarantees were not material. The Company believes that as of November 30, 2021, 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 should 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 for its joint ventures (see Note 4). In the first quarter of 2021, the Company formed the Upward America Venture (“Upward America”), and is managing and participating in Upward America. Upward America is an investment fund that acquires new single-family homes in high growth markets across the United States and rents them to the people who will live in them. Upward America has raised equity commitments totaling $1.25 billion primarily from institutional investors, including $125 million committed by Lennar. During the year ended November 30, 2021, Lennar delivered 1,457 homes to Upward America. Subsequent to November 30, 2021, the equity commitments were increased to $1.6 billion. Multifamily Unconsolidated Entities The unconsolidated entities in which the Multifamily segment has investments usually finance their activities with a combination of partner equity and debt financing. In connection with many of the loans to Multifamily unconsolidated entities, the Company (or entities related to them) has been required to give guarantees of completion and cost over-runs to the lenders and partners. Those completion guarantees may require that the guarantors complete the construction of the improvements for which the financing was obtained. Additionally, the Company guarantees the construction costs of the project as construction cost over-runs would be paid by the Company. Generally, these payments would increase the Company's investment in the entities and would increase its share of funds the entities distribute after the achievement of certain thresholds. As of both November 30, 2021 and 2020, the fair value of the completion guarantees was immaterial. As of November 30, 2021 and 2020, Multifamily segment's unconsolidated entities had non-recourse debt with completion guarantees of $855.2 million and $722.9 million, respectively. In many instances, the Multifamily segment is appointed as the construction, development and property manager for its Multifamily unconsolidated entities and receives fees for performing this function. The Multifamily segment also provides general contractor services for construction of some of the rental properties owned by unconsolidated entities in which the Company has investments. The details of the activity was as follows: Years Ended November 30, (In thousands) 2021 2020 2019 General contractor services, net of deferrals $ 549,400 400,808 355,388 General contractor costs 533,398 383,649 340,081 Management fee income 56,573 56,253 53,597 The Multifamily segment includes Multifamily Venture Fund I (the "LMV I") and Multifamily Venture Fund II LP (the "LMV II"), which are long-term multifamily development investment vehicles involved in the development, construction and ownership of class-A multifamily rental properties. Details of each as of and during the year ended November 30, 2021 are included below: November 30, 2021 (In thousands) LMV I LMV II Lennar's carrying value of investments $ 254,732 320,565 Equity commitments 2,204,016 1,257,700 Equity commitments called 2,149,357 1,201,475 Lennar's equity commitments 504,016 381,000 Lennar's equity commitments called 499,031 362,913 Lennar's remaining commitments 4,985 18,087 Distributions to Lennar during the year ended November 30, 2021 67,197 9,672 Lennar Other Lennar Other primarily includes fund investments the Company retained when it sold the Rialto asset and investment management platform, as well as strategic investments in technology companies. Condensed Financial Information of Unconsolidated Entities Summarized condensed financial information on a combined 100% basis related to the Company's unconsolidated entities that are accounted for under the equity method was as follows: (In thousands) November 30, 2021 Assets: Homebuilding Multifamily Lennar Total Cash and cash equivalents $ 460,901 25,972 430,807 917,680 Loans receivable — — 65,971 65,971 Real estate owned — — 279,200 279,200 Investment securities — — 2,461,788 2,461,788 Investments in partnerships — — 346,042 346,042 Inventories 4,666,454 — — 4,666,454 Operating properties and equipment 44,802 6,406,500 — 6,451,302 Other assets 1,044,771 111,750 219,680 1,376,201 $ 6,216,928 6,544,222 3,803,488 16,564,638 Liabilities and equity: Accounts payable and other liabilities $ 904,078 240,928 179,879 1,324,885 Debt (1) 1,216,721 3,407,362 399,632 5,023,715 Equity 4,096,129 2,895,932 3,223,977 10,216,038 $ 6,216,928 6,544,222 3,803,488 16,564,638 Investments in unconsolidated entities $ 972,084 654,029 346,270 1,972,383 (In thousands) November 30, 2020 Assets: Homebuilding Multifamily Lennar Total Cash and cash equivalents $ 546,013 94,801 284,517 814,222 Loans receivable — — 95,281 95,281 Real estate owned — — 295,391 295,391 Investment securities — — 2,169,480 2,093,766 Investments in partnerships — — 260,721 260,721 Inventories 4,527,371 — — 4,527,371 Operating properties and equipment 148,020 5,392,681 23,968 5,564,669 Other assets 862,875 115,968 1,263,881 2,077,942 $ 6,084,279 5,603,450 4,393,239 15,729,363 Liabilities and equity: Accounts payable and other liabilities $ 866,812 219,522 190,384 1,117,447 Debt (1) 1,085,639 2,519,567 292,313 3,897,519 Equity 4,131,828 2,864,361 3,910,542 10,714,397 $ 6,084,279 5,603,450 4,393,239 15,729,363 Investments in unconsolidated entities $ 953,177 724,647 387,097 2,064,921 (1) Debt noted above is net of debt issuance costs. As of November 30, 2021 and 2020 this includes $11.9 million and $11.8 million, respectively, for Homebuilding, $23.4 million and $31.1 million, respectively, for Multifamily and an immaterial amount of debt issuance costs for Lennar Other. (In thousands) Statement of Operations Years Ended: Revenues Cost and expenses Other income (expense), net (1) Net earnings (loss) of unconsolidated entities Equity in earnings (loss) from unconsolidated entities November 30, 2021 $ 1,383,266 1,448,775 187,625 122,116 48,993 November 30, 2020 1,362,686 1,221,873 (244,680) (103,867) (13,939) November 30, 2019 782,712 774,550 347,018 355,180 13,393 (1) Other income (expense), net included realized and unrealized gains (losses) on investments. |
Lennar Homebuilding Senior Note
Lennar Homebuilding Senior Notes And Other Debts Payable | 12 Months Ended |
Nov. 30, 2021 | |
Debt Disclosure [Abstract] | |
Lennar Homebuilding Senior Notes And Other Debts Payable | Homebuilding Senior Notes and Other Debts Payable November 30, (Dollars in thousands) 2021 2020 4.750% senior notes due 2022 $ 573,840 572,724 4.875% senior notes due December 2023 398,345 397,347 4.500% senior notes due 2024 648,253 647,528 5.875% senior notes due 2024 438,810 443,484 4.750% senior notes due 2025 498,446 498,002 5.25% senior notes due 2026 405,497 406,709 5.00% senior notes due 2027 352,124 352,508 4.75% senior notes due 2027 895,510 894,760 6.25% senior notes due December 2021 — 305,221 4.125% senior notes due 2022 — 598,876 5.375% senior notes due 2022 — 255,342 Mortgage notes on land and other debt 441,513 583,257 $ 4,652,338 5,955,758 The carrying amounts of the senior notes listed above are net of debt issuance costs of $11.0 million and $15.9 million, as of November 30, 2021 and 2020, respectively. In June 2021, the Company retired $300 million aggregate principal amount of its 6.25% senior notes due December 2021 at par. In October 2021, the Company retired $600 million aggregate principal amount of its 4.125% senior notes due January 2022 at par. In November 2021, the Company retired early, at a premium, $250 million aggregate principal amount of its 5.375% senior notes due October 2022. The loss on early retirement of the $250 million senior notes was $7.4 million. At November 30, 2021, the Company had an unsecured revolving credit facility (the "Credit Facility") with maximum borrowings of $2.5 billion maturing in 2024, that included a $300 million accordion feature, subject to additional commitments, thus the maximum borrowings could be $2.8 billion. The credit agreement also provides that up to $500 million in commitments may be used for letters of credit. As of both November 30, 2021 and 2020, the Company had no outstanding borrowings under the Credit Facility. Under the Credit Facility agreement, the Company is required to maintain a minimum consolidated tangible net worth, a maximum leverage ratio and either a liquidity or an interest coverage ratio. These ratios are calculated per the Credit Facility agreement, which involves adjustments to GAAP financial measures. The Company believes it was in compliance with its debt covenants at November 30, 2021. In addition to the Credit Facility, the Company has other letter of credit facilities with different financial institutions. Performance letters of credit are generally posted with regulatory bodies to guarantee the Company’s performance of certain development and construction activities. Financial letters of credit are generally posted in lieu of cash deposits on option contracts, for insurance risks, credit enhancements and as other collateral. Additionally, at November 30, 2021, the Company had outstanding surety bonds including performance surety bonds related to site improvements at various projects (including certain projects of the Company’s joint ventures) and financial surety bonds. Although significant development and construction activities have been completed related to these site improvements, these bonds are generally not released until all development and construction activities are completed. The Company does not presently anticipate any draws upon these bonds or letters of credit, but if any such draws occur, the Company does not believe they would have a material effect on its financial position, results of operations or cash flows. The Company's outstanding letters of credit and surety bonds are described below: November 30, (In thousands) 2021 2020 Performance letters of credit $ 924,584 752,096 Financial letters of credit 425,843 283,193 Surety bonds 3,553,047 3,087,711 Anticipated future costs primarily for site improvements related to performance surety bonds 1,690,861 1,584,642 The terms of each of the Company's senior notes outstanding at November 30, 2021 were as follows: Senior Notes Outstanding (1) Principal Amount Net Proceeds (2) Price Dates Issued (Dollars in thousands) 4.750% senior notes due 2022 $ 575,000 $ 567,585 (4) October 2012, February 2013, April 2013 4.875% senior notes due December 2023 400,000 393,622 99.169 % November 2015 4.500% senior notes due 2024 650,000 644,838 100 % April 2017 5.875% senior notes due 2024 425,000 (3) (3) (3) 4.750% senior notes due 2025 500,000 495,528 100 % April 2015 5.25% senior notes due 2026 400,000 (3) (3) (3) 5.00% senior notes due 2027 350,000 (3) (3) (3) 4.75% senior notes due 2027 900,000 894,650 100 % November 2017 (1) Interest is payable semi-annually for each of the series of senior notes. The senior notes are unsecured and unsubordinated, but are guaranteed by substantially all of the Company's 100% owned homebuilding subsidiaries. (2) The Company generally has historically used the net proceeds for working capital and general corporate purposes, which can include the repayment or repurchase of other outstanding senior notes. (3) These notes were obligations of CalAtlantic when it was acquired, and were subsequently exchanged in part for notes of the Company. As part of purchase accounting, the senior notes have been recorded at their fair value as of the date of acquisition (February 12, 2018). (4) The Company issued $350 million aggregate principal amount at a price of 100%, $175 million aggregate principal amount at a price of 98.073% and $50 million aggregate principal amount at a price of 98.250%. The Company's senior notes are guaranteed by substantially all of the Company's 100% owned homebuilding subsidiaries and some of the Company's other subsidiaries. Although the guarantees are full, unconditional and joint and several while they are in effect, (i) a subsidiary will have its guarantee suspended at any time when it is not directly or indirectly guaranteeing at least $75 million of debt of Lennar Corporation (the parent company) other than senior notes, and (ii) a subsidiary will be released from its guarantee and any other obligations it may have regarding the senior notes if all or substantially all its assets, or all of its capital stock, are sold or otherwise disposed of. At November 30, 2021, the Company had mortgage notes on land and other debt due at various dates through 2036 bearing interest at rates up to 8.0% with an average interest rate of 4.0%. At November 30, 2021 and 2020, the carrying amount of the mortgage notes on land and other debt was $441.5 million and $583.3 million, respectively. During the years ended November 30, 2021 and 2020, the Company retired $195.2 million and $555.6 million, respectively, of mortgage notes on land and other debt. The minimum aggregate principal maturities of Homebuilding senior notes and other debts payable during the five years subsequent to November 30, 2021 and thereafter are as follows: (In thousands) Debt 2022 $ 718,279 2023 104,387 2024 1,529,977 2025 591,432 2026 402,794 Thereafter 1,294,642 The Company expects to pay its near-term maturities as they come due through cash generated from operations, the issuance of additional debt or equity offerings as well as borrowings under the Company's Credit Facility. |
Income Taxes
Income Taxes | 12 Months Ended |
Nov. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes consisted of the following: Years Ended November 30, (In thousands) 2021 2020 2019 Current: Federal $ 924,474 428,907 298,701 State 245,941 135,246 53,400 $ 1,170,415 564,153 352,101 Deferred: Federal $ 149,349 59,065 165,080 State 42,745 33,017 74,992 192,094 92,082 240,072 $ 1,362,509 656,235 592,173 A reconciliation of the statutory rate and the effective tax rate was as follows: Percentage of Pretax Income 2021 2020 2019 Statutory rate 21.00 % 21.00 % 21.00 % State income taxes, net of federal income tax benefit 4.03 4.00 4.17 Tax credits (1) (1.73) (4.46) (1.49) Nondeductible compensation 0.49 0.57 0.45 Tax reserves and interest expense, net 0.03 — (0.03) Deferred tax asset valuation allowance, net (0.01) — (0.02) Other (0.29) (0.09) 0.18 Effective rate 23.52 % 21.02 % 24.26 % (1) During fiscal year 2020, Congress extended the new energy efficient home tax credit for homes delivered from 2018 to 2021, with retroactive effect for 2018 and 2019. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of significant temporary differences that give rise to the net deferred tax assets were as follows: November 30, (In thousands) 2021 2020 Deferred tax assets: Inventory valuation adjustments $ 94,624 136,868 Reserves and accruals 187,466 161,984 Net operating loss carryforwards 74,902 88,021 Capitalized expenses 174,405 130,910 Investments in unconsolidated entities 48,913 67,405 Employee stock incentive plan 37,813 25,060 Other assets 49,828 51,655 Total deferred tax assets 667,951 661,903 Valuation allowance (2,693) (4,411) Total deferred tax assets after valuation allowance 665,258 657,492 Deferred tax liabilities: Capitalized expenses 187,332 181,729 Deferred income 272,827 240,903 Unrealized gains on investments in equity securities 164,534 — Other liabilities 44,810 47,478 Total deferred tax liabilities 669,503 470,110 Net deferred tax assets (liabilities) $ (4,245) 187,382 The detail of the Company's net deferred tax assets (liabilities) was as follows: November 30, (In thousands) 2021 2020 Net deferred tax assets (liabilities): (1) Homebuilding $ 84,198 119,467 Financial Services (1,431) 1,024 Multifamily 64,247 38,155 Lennar Other (151,259) 28,736 Net deferred tax assets (liabilities) $ (4,245) 187,382 (1) Net deferred tax assets and net deferred tax liabilities detailed above are included within other assets and other liabilities in the respective segments. A reduction of the carrying amounts of deferred tax assets by a valuation allowance is required if, based on the available evidence, it is more likely than not that such assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed each reporting period by the Company based on the consideration of all available positive and negative evidence using a "more-likely-than-not" standard with respect to whether deferred tax assets will be realized. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, actual earnings, forecasts of future profitability, the duration of statutory carryforward periods, the Company’s experience with loss carryforwards not expiring unused and tax planning alternatives. November 30, (In thousands) 2021 2020 Valuation allowance (1) $ (2,693) (4,411) Federal tax effected NOL carryforwards (2) 32,968 36,264 State tax effected NOL carryforwards (3) 41,935 51,757 (1) As of November 30, 2021 and 2020, the deferred tax assets included valuation allowances primarily related to state net operating loss ("NOL") carryforwards that are not more likely than not to be utilized due to an inability to carry back these losses in most states and short carryforward periods that exist in certain states. (2) At November 30, 2021 and 2020, the Company had federal tax effected NOL carryforwards that may be carried forward to offset future taxable income and begin to expire in 2029. (3) At November 30, 2021 and 2020, the Company had state tax effected NOL carryforwards that may be carried forward from 10 to 20 years or indefinitely, depending on the tax jurisdiction, with certain losses expiring between 2022 and 2039. The following table summarizes the changes in gross unrecognized tax benefits: Years Ended November 30, (In thousands) 2021 2020 2019 Gross unrecognized tax benefits, beginning of year $ 12,285 12,856 14,667 Lapse of statute of limitations — (349) (1,811) Decreases due to settlements with tax authorities — (222) — Gross unrecognized tax benefits, end of year $ 12,285 12,285 12,856 If the Company were to recognize its gross unrecognized tax benefits as of November 30, 2021, $9.7 million would affect the Company’s effective tax rate. The Company believes it is reasonably possible that its gross unrecognized tax benefits could decrease by up to $12.3 million within the following twelve months. The following summarizes the changes in interest and penalties accrued with respect to gross unrecognized tax benefits: November 30, (In thousands) 2021 2020 Accrued interest and penalties, beginning of the year $ 57,764 55,333 Accrual of interest and penalties (primarily related to state audits) 2,173 2,802 Reduction of interest and penalties — (371) Accrued interest and penalties, end of the year $ 59,937 57,764 The IRS is currently examining the Company's federal tax income tax returns for fiscal year 2020, and certain state taxing authorities are examining various fiscal years. The final outcome of these examinations is not yet determinable. The statute of limitations for the Company's major tax jurisdictions remains open for examination for fiscal year 2005 and subsequent years. The Company participates in an IRS examination program, Compliance Assurance Process, "CAP". This program operates as a contemporaneous exam throughout the year in order to keep exam cycles current and achieve a higher level of compliance. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Nov. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic and diluted earnings per share were calculated as follows: Years Ended November 30, (In thousands, except per share amounts) 2021 2020 2019 Numerator: Net earnings attributable to Lennar $ 4,430,111 2,465,036 1,849,052 Less: distributed earnings allocated to nonvested shares 2,690 1,658 420 Less: undistributed earnings allocated to nonvested shares 50,229 26,731 15,722 Numerator for basic earnings per share 4,377,192 2,436,647 1,832,910 Less: net amount attributable to noncontrolling interests in Rialto's Carried Interest Incentive Plan (1) 2,907 8,971 4,204 Numerator for diluted earnings per share $ 4,374,285 2,427,676 1,828,706 Denominator: Denominator for basic earnings per share - weighted average common shares outstanding 306,612 309,406 318,419 Effect of dilutive securities: Share-based payments — 1 3 Denominator for diluted earnings per share - weighted average common shares outstanding 306,612 309,407 318,422 Basic earnings per share $ 14.28 7.88 5.76 Diluted earnings per share $ 14.27 7.85 5.74 (1) The amounts presented above relate to Rialto's Carried Interest Incentive Plan and represent the difference between the advanced tax distributions received by the Lennar Other segment and the amount Lennar, as the parent company, is assumed to own. For the years ended November 30, 2021, 2020 and 2019, there were no options to purchase shares of common stock that were outstanding and anti-dilutive. |
Financial Instruments and Fair
Financial Instruments and Fair Value Disclosure | 12 Months Ended |
Nov. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Disclosure | Financial Instruments and Fair Value Disclosures The following table presents the carrying amounts and estimated fair values of financial instruments held by the Company at November 30, 2021 and 2020, using available market information and what the Company believes to be appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies might have a material effect on the estimated fair value amounts. The table excludes cash and cash equivalents, restricted cash, receivables, net, and accounts payable, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments. November 30, 2021 2020 Fair Value Carrying Fair Carrying Fair (In thousands) Hierarchy Amount Value Amount Value ASSETS Financial Services: Loans held-for-investment, net Level 3 $ 44,582 44,594 72,626 70,808 Investments held-to-maturity Level 3 157,808 184,495 164,230 196,047 LIABILITIES Homebuilding senior notes and other debts payable, net Level 2 $ 4,652,338 5,046,721 5,955,758 6,581,798 Financial Services notes and other debts payable, net Level 2 1,726,026 1,726,860 1,463,919 1,464,850 Lennar Other notes and other debts payable, net Level 2 — — 1,906 1,906 The following methods and assumptions are used by the Company in estimating fair values: Financial Services —The fair values above are based on quoted market prices, if available. The fair values for instruments that do not have quoted market prices are estimated by the Company on the basis of discounted cash flows or other financial information. For notes and other debts payable, the fair values approximate their carrying value due to variable interest pricing terms and the short-term nature of the majority of the borrowings. Homebuilding —For senior notes and other debts payable, the fair value of fixed-rate borrowings is primarily based on quoted market prices and the fair value of variable-rate borrowings is based on expected future cash flows calculated using current market forward rates. Lennar Other —The fair value for notes payable approximate their carrying value due to variable interest pricing terms and the short-term nature of the borrowings. Fair Value Measurements GAAP provides a framework for measuring fair value, expands disclosures about fair value measurements and establishes a fair value hierarchy which prioritizes the inputs used in measuring fair value summarized as follows: Level 1: Fair value determined based on quoted prices in active markets for identical assets. Level 2: Fair value determined using significant other observable inputs. Level 3: Fair value determined using significant unobservable inputs. The Company’s financial instruments measured at fair value on a recurring basis are summarized below: Fair Value at November 30, (In thousands) Fair 2021 2020 Financial Services Assets: Residential loans held-for-sale Level 2 $ 1,636,283 1,296,517 LMF Commercial loans held-for-sale Level 3 68 193,588 Mortgage servicing rights Level 3 2,492 2,113 Lennar Other: Investments in equity securities Level 1 906,539 — Investments available-for-sale Level 3 41,654 53,497 Residential and LMF Commercial loans held-for-sale in the table above include: November 30, 2021 2020 (In thousands) Aggregate Principal Balance Change in Fair Value Aggregate Principal Balance Change in Fair Value Residential loans held-for-sale $ 1,586,764 49,519 1,232,548 63,969 LMF Commercial loans held-for-sale — 68 194,362 (774) The estimated fair values of the Company’s financial instruments have been determined by using available market information and what the Company believes to be appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies might have a material effect on the estimated fair value amounts. The following methods and assumptions are used by the Company in estimating fair values: Financial Services residential loans held-for-sale — Fair value is based on independent quoted market prices, where available, or the prices for other mortgage whole loans with similar characteristics. The Company recognizes the fair value of its rights to service a mortgage loan as revenue upon entering into an interest rate lock loan commitment with a borrower. The fair value of these are included in Financial Services’ loans held-for-sale as of November 30, 2021 and 2020. Fair value of servicing rights is determined based on actual sales of servicing rights on loans with similar characteristics. LMF Commercial loans held-for-sale — The fair value of loans held-for-sale is calculated from model-based techniques that use discounted cash flow assumptions and the Company’s own estimates of CMBS spreads, market interest rate movements and the underlying loan credit quality. Loan values are calculated by allocating the change in value of an assumed CMBS capital structure to each loan. The value of an assumed CMBS capital structure is calculated, generally, by discounting the cash flows associated with each CMBS class at market interest rates and at the Company’s own estimate of CMBS spreads. The Company estimates CMBS spreads by observing the pricing of recent CMBS offerings, secondary CMBS markets, changes in the CMBX index, and general capital and commercial real estate market conditions. Considerations in estimating CMBS spreads include comparing the Company’s current loan portfolio with comparable CMBS offerings containing loans with similar duration, credit quality and collateral composition. These methods use unobservable inputs in estimating a discount rate that is used to assign a value to each loan. While the cash payments on the loans are contractual, the discount rate used and assumptions regarding the relative size of each class in the CMBS capital structure can significantly impact the valuation. Therefore, the estimates used could differ materially from the fair value determined when the loans are sold to a securitization trust. Financial Services mortgage servicing rights — Financial Services records mortgage servicing rights when it sells loans on a servicing-retained basis or through the acquisition or assumption of the right to service a financial asset. The fair value of the mortgage servicing rights is calculated using third-party valuations. The key assumptions, which are generally unobservable inputs, used in the valuation of the mortgage servicing rights include mortgage prepayment rates, discount rates and delinquency rates and are noted below: November 30, 2021 Unobservable inputs Mortgage prepayment rate 13 % Discount rate 13 % Delinquency rate 4 % 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 of the Company’s consolidated statements of operations and comprehensive income (loss). Lennar Other investments available-for-sale - The fair value of investments available-for-sale is calculated from model-based techniques that use discounted cash flow assumptions and the Company’s own estimates of CMBS spreads, market interest rate movements and the underlying loan credit quality. Loan values are calculated by allocating the change in value of an assumed CMBS capital structure to each loan. The value of an assumed CMBS capital structure is calculated, generally, by discounting the cash flows associated with each CMBS class at market interest rates and at the Company’s own estimate of CMBS spreads. The changes in fair values for Level 1 and Level 2 financial instruments measured on a recurring basis are shown below by financial instrument and financial statement line item: Years Ended November 30, (In thousands) 2021 2020 2019 Changes in fair value included in Financial Services revenues: Loans held-for-sale $ (14,449) 21,765 4,891 Mortgage loan commitments (8,302) 12,774 (85) Forward contracts 11,513 (9,805) 6,504 Changes in fair value included in Lennar Other realized and unrealized gains: Investments in equity securities $ 510,802 — — Changes in fair value included in other comprehensive income (loss), net of tax: Lennar Other investments available-for-sale $ (536) (805) — Financial Services investments available-for-sale — (46) 1,040 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: Years Ended November 30, 2021 2020 (In thousands) Mortgage servicing rights LMF Commercial loans held-for-sale Mortgage servicing rights LMF Commercial loans held-for-sale Beginning of year $ 2,113 193,588 24,679 197,224 Purchases/loan originations 584 774,905 2,378 703,777 Sales/loan originations sold, including those not settled — (931,023) — (705,089) Disposals/settlements (1) (1,365) (35,837) (10,322) — Changes in fair value (2) 1,160 (388) (14,622) (25) Interest and principal paydowns — (1,177) — (2,299) End of year $ 2,492 68 2,113 193,588 (1) The year ended November 30, 2021 includes $28.5 million of loans sold/paid outside of LMF Commercial ’s six securitizations and $7.3 million of loans converted to loans held-for-investment. The year ended November 30, 2020 includes $7.5 million related to the sale of a servicing portfolio. (2) Changes in fair value for LMF Commercial loans held-for-sale and Financial Services mortgage servicing rights are included in Financial Services' revenues. The Company’s assets measured at fair value on a nonrecurring basis are those assets for which the Company has recorded valuation adjustments and write-offs. The fair values included in the tables below represent only those assets whose carrying values were adjusted to fair value during the respective periods disclosed. The assets measured at fair value on a nonrecurring basis are summarized below: Years Ended November 30, 2021 2020 2019 (In thousands) Fair Carrying Value Fair Value Total Carrying Value Fair Value Total Losses, Net (1) Carrying Value Fair Value Total Losses, Net (1) Non-financial assets Homebuilding: Finished homes and construction in progress (2) Level 3 $ 32,364 16,342 (16,022) 176,637 148,684 (27,953) 218,942 205,201 (13,741) Land and land under development (2) Level 3 35,775 26,841 (8,934) 182,137 92,355 (89,782) 121,564 82,816 (38,748) Other assets (2) Level 3 12,764 12,024 (740) — — — 60,363 56,727 (3,636) (1) Represents losses due to valuation adjustments, write-offs, gains (losses) from transfers or acquisitions of real estate through foreclosure and REO impairments recorded during the year. (2) Valuation adjustments for finished homes, construction in progress and land and land under development were included in Homebuilding costs and expenses and valuation adjustments for other assets were included in homebuilding other income (expense), net in the Company's consolidated statements of operations for the years ended November 30, 2021, 2020 and 2019. See Note 1 for a detailed description of the Company’s process for identifying and recording valuation adjustments related to Homebuilding inventory. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Nov. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities The Company evaluated the joint venture ("JV") agreements of its JV's that were formed or that had reconsideration events, such as changes in the governing documents or to debt arrangements during the year ended November 30, 2021 and based on the Company's evaluation, during the year ended November 30, 2021, the Company consolidated seven entities that had a total combined assets and liabilities of $77.1 million and $3.2 million, respectively. During the year ended November 30, 2021, there were no VIEs that were deconsolidated. During the year ended November 30, 2020, the Company's Financial Services segment deconsolidated one entity that had total assets and liabilities of $291.2 million and $204.1 million, respectively. In January 2019, this JV was formed by the sale of the Company’s retail title agency and its retail title insurance business to this JV entity. In exchange for the sale of the retail agency and retail title insurance business, the Company received 20% of the JV entity’s preferred stock, warrants exercisable to purchase additional shares of preferred stock in the JV entity and a note due from the JV to the Company. The JV entity’s reconsideration event was due to a significant equity raise that was completed during the three months ended May 31, 2020. The proceeds of the equity raise resulted in approximately a 43% reduction of the principal amount of debt owed by the JV entity to the Company as well as an approximately 20% reduction of the Company’s ownership interest in the JV. The JV remained a VIE at November 30, 2020, however, the Company concluded that it is no longer the primary beneficiary as the Company no longer has the power to direct the VIE. In aggregate, the resulting fair value of the equity investment and note receivable totaled $123.4 million, of which $70.8 million was included in Financial Services investments in unconsolidated entities at the time of deconsolidation. Upon deconsolidation, the Company recorded a gain of $61.4 million during the year ended November 30, 2020. In the current year, the investment in that entity has been reclassified to the Lennar Other Segment, as such, the investment as of November 30, 2020 has also been reclassed to the Lennar Other segment. See Note 1 for additional discussion regarding the reclass. The carrying amount of the Company's consolidated VIE's assets and non-recourse liabilities are disclosed in the footnote to the consolidated balance sheets. A VIE’s assets can only be used to settle obligations of that VIE. The VIEs are not guarantors of the Company’s senior notes and other debts payable. The assets held by a VIE usually are collateral for that VIE’s debt. The Company and other partners do not generally have an obligation to make capital contributions to a VIE unless the Company and/or the other partner(s) have entered into debt guarantees with the VIE’s banks. Other than debt guarantee agreements with a VIE’s banks, 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 At November 30, 2021 and 2020, the Company’s recorded investments in VIEs that are unconsolidated and its estimated maximum exposure to loss were as follows: November 30, 2021 2020 (In thousands) Investments in Unconsolidated VIEs Lennar’s Maximum Exposure to Loss Investments in Lennar’s Maximum Exposure to Loss Homebuilding (1) $ 107,323 301,619 89,654 89,828 Multifamily (2) 579,388 611,937 619,540 717,271 Financial Services (3) 157,808 157,808 164,230 164,230 Lennar Other (4) 12,680 12,680 76,023 130,177 $ 857,199 1,084,044 949,447 1,101,506 (1) As of November 30, 2021 and 2020, the maximum exposure to loss of Homebuilding's investments in unconsolidated VIEs was limited to its investments in unconsolidated VIEs, except as of November 30, 2021, with regard to the Company's remaining commitment to fund capital in the Upward America Venture, a single family for rent platform, and a short-term note provided by the Company to the Upward America Venture. (2) As of November 30, 2021 and 2020, the maximum exposure to loss of Multifamily's investments in unconsolidated VIEs was primarily limited to its investments in the unconsolidated VIEs, except with regard to the remaining equity commitment of $23.1 million and $88.1 million, respectively, to fund LMV I and LMV II for futre expenditures related to the construction and development of its projects. (3) As of both November 30, 2021 and 2020, the maximum exposure to loss of the Financial Services segment was limited to its investment in the unconsolidated entities VIEs and related to the Financial Services' CMBS investments held-to-maturity. (4) At November 30, 2021, the decrease in investments in unconsolidated VIEs and maximum exposure to loss was related to an entity which had a reconsideration event due to the payoff of a note receivable which caused the entity to no longer be considered a VIE. While these entities are VIEs, the Company has determined that the power to direct the activities of the VIEs that most significantly impact the VIEs’ economic performance is generally shared and the Company and its partners are not de-facto agents. While the Company generally manages the day-to-day operations of the VIEs, each of these VIEs has an executive committee made up of representatives from each partner. The members of the executive committee have equal votes and major decisions require unanimous consent and approval from all members. The Company does not have the unilateral ability to exercise participating voting rights without partner consent. There are no liquidity arrangements or agreements to fund capital or purchase assets that could require the Company to provide financial support to the VIEs. Except for the unconsolidated VIEs discussed above, the Company and the other partners did not guarantee any debt of the other unconsolidated VIEs. While the Company has option contracts to purchase land from certain of its unconsolidated VIEs, the Company is not required to purchase the assets and could walk away from the contracts. Option Contracts The Company has access to land through option contracts, which generally enable it to control portions of properties owned by third parties (including land funds) and unconsolidated entities until the Company has determined whether to exercise the options. The Company evaluates all option contracts for land to determine whether they are VIEs and, if so, whether the Company is the primary beneficiary of certain of these option contracts. Although the Company does not have legal title to the optioned land, if the Company is deemed to be the primary beneficiary or makes a significant deposit for optioned land, it may need to consolidate the land under option at the purchase price of the optioned land. During the year ended November 30, 2021, consolidated inventory not owned increased by $324.5 million with a corresponding increase to liabilities related to consolidated inventory not owned in the accompanying consolidated balance sheet as of November 30, 2021.The increase was primarily due to additions in the year ended November 30, 2021 as the Company focused on increasing its controlled homesites, partially offset by takedowns. To reflect the purchase price of the homesite takedowns, the Company had a net reclass related to option deposits from consolidated inventory not owned to land under development in the accompanying consolidated balance sheet as of November 30, 2021. The liabilities related to consolidated inventory not owned primarily represent the difference between the option exercise prices for the optioned land and the Company’s cash deposits. The Company’s exposure to loss related to its option contracts with third parties and unconsolidated entities were as follows: November 30, (In thousands) 2021 2020 Non-refundable option deposits and pre-acquisition costs $ 1,228,057 414,154 Letters of credit in lieu of cash deposits under certain land and option contracts 175,937 87,537 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Nov. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities The Company is party to various claims, legal actions and complaints arising in the ordinary course of business. In the opinion of management, the disposition of these matters will not have a material adverse effect on the Company’s consolidated financial statements. From time to time, the Company is also a party to various lawsuits involving purchases and sales of real property. These lawsuits include claims regarding representations and warranties made in connection with the transfer of properties and disputes regarding the obligation to purchase or sell properties. The Company does not believe that the ultimate resolution of these claims or lawsuits will have a material adverse effect on its business or financial position. However, the financial effect of litigation concerning purchases and sales of property may depend upon the value of the subject property, which may have changed from the time the agreement for purchase or sale was entered into. The Company is subject to the usual obligations associated with entering into contracts (including option contracts) for the purchase, development and sale of real estate, which it does in the routine conduct of its business. Option contracts generally enable the Company to control portions of properties owned by third parties (including land funds) and unconsolidated entities until the Company determines whether to exercise the option. The use of option contracts allows the Company to reduce the financial risks associated with long-term land holdings. At November 30, 2021, the Company had $1.2 billion of non-refundable option deposits and pre-acquisition costs related to certain of these homesites, which were included in inventories in the consolidated balance sheet. Leases The Company has entered into agreements to lease certain office facilities and equipment under operating leases. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. ROU assets and lease liabilities are recorded on the balance sheet for all leases, except leases with an initial term of 12 months or less. Many of the Company's leases include options to renew. The exercise of lease renewal options is at the Company's option and therefore renewal option payments have not been included in the ROU assets or lease liabilities. The following table includes additional information about the Company's leases: (Dollars in thousands) November 30, 2021 Right-of-use assets $ 155,616 Lease liabilities $ 163,513 Weighted-average remaining lease term (in years) 8.2 Weighted-average discount rate 2.8% The Company has entered into agreements to lease certain office facilities and equipment under operating leases. Future minimum payments under the noncancellable leases in effect at November 30, 2021 were as follows: (In thousands) Lease Payments 2022 $ 40,387 2023 28,878 2024 23,231 2025 18,797 2026 and thereafter 72,852 Total future minimum lease payments (1) $ 184,145 Less: Interest (2) 20,632 Present value of lease liabilities (2) $ 163,513 (1) Future minimum lease payments exclude variable lease costs and short-term lease costs, which were $29.2 million and $1.9 million, respectively, for the year ended November 30, 2021. This also does not include minimum lease payments for executed and legally enforceable leases that have not yet commenced. As of November 30, 2021, the minimum lease payments for these leases that have not yet commenced were immaterial. (2) The Company's leases do not include a readily determinable implicit rate. As such, the Company has estimated the discount rate for these leases to determine the present value of lease payments at the lease commencement date or as of December 1, 2019, which was the effective date of ASU 2016-02. The Company recognized the lease liabilities on its balance sheets within other liabilities The Company's rental expense was as follows: November 30, (In thousands) 2021 2020 2019 Rental expense $ 84,991 82,090 92,178 On occasion, the Company may sublease rented space which is no longer used for the Company's operations. For the year ended November 30, 2021, the Company had an immaterial amount of sublease income. The Company is committed, under various letters of credit, to perform certain development and construction activities and provide certain guarantees in the normal course of business. Outstanding letters of credit under these arrangements totaled $1.4 billion at November 30, 2021. Additionally, at November 30, 2021, the Company had outstanding surety bonds of $3.6 billion including performance surety bonds related to site improvements at various projects (including certain projects in the Company’s joint ventures) and financial surety bonds. Although significant development and construction activities have been completed related to these site improvements, these bonds are generally not released until all development and construction activities are completed. As of November 30, 2021, there were approximately $1.7 billion, or 48%, of anticipated future costs to complete related to these site improvements. The Company does not presently anticipate any draws upon these bonds that would have a material effect on its consolidated financial statements. Substantially all of the loans the Financial Services segment originates are sold within a short period in the secondary mortgage market on a servicing released, non-recourse basis. After the loans are sold, the Company retains potential liability for possible claims by purchasers that it breached certain limited industry-standard representations and warranties in the loan sale agreements. Over the last decade there has been an industry-wide effort by purchasers to defray their losses by purporting to have found inaccuracies related to sellers’ representations and warranties in particular loan sale agreements. Mortgage investors or others could seek to have the Company buy back mortgage loans or compensate them for losses incurred on mortgage loans that the Company has sold based on claims that the Company breached its limited representations or warranties. The Company’s mortgage operations have established accruals for possible losses associated with mortgage loans previously originated and sold to investors. The Company establishes accruals for such possible losses based upon, among other things, an analysis of repurchase requests received, an estimate of potential repurchase claims not yet received and actual past repurchases and losses through the disposition of affected loans as well as previous settlements. While the Company believes that it has adequately reserved for known losses and projected repurchase requests, given the volatility in the mortgage industry and the uncertainty regarding the ultimate resolution of these claims, if either actual repurchases or the losses incurred resolving those repurchases exceed the Company’s expectations, additional recourse expense may be incurred. Loan origination liabilities are included in Financial Services’ liabilities in the Company's consolidated balance sheets. |
Schedule II-Valuation And Quali
Schedule II-Valuation And Qualifying Accounts | 12 Months Ended |
Nov. 30, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II-Valuation And Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts Years Ended November 30, 2021, 2020 and 2019 Additions (In thousands) Beginning Charged to costs and expenses Charged (credited) to other accounts Deductions Ending Year ended November 30, 2021 Allowances deducted from assets to which they apply: Allowances for credit losses and notes and other receivables $ 2,394 79 59 (1) 2,531 Allowance for loan losses and loans receivable $ 4,012 — (31) (1,890) 2,091 Allowance against net deferred tax assets $ 4,411 — (1,556) (162) 2,693 Year ended November 30, 2020 Allowances deducted from assets to which they apply: Allowances for credit losses and notes and other receivables $ 3,379 661 (568) (1,078) 2,394 Allowance for loan losses and loans receivable $ 4,122 795 17 (922) 4,012 Allowance against net deferred tax assets $ 4,341 70 — — 4,411 Year ended November 30, 2019 Allowances deducted from assets to which they apply: Allowances for credit losses and notes and other receivables $ 2,793 1,404 (344) (474) 3,379 Allowance for loan losses and loans receivable $ 6,154 485 — (2,517) 4,122 Allowance against net deferred tax assets $ 7,219 — — (2,878) 4,341 |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Nov. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis Of Consolidation | The accompanying consolidated financial statements include the accounts of Lennar Corporation and all subsidiaries, partnerships and other entities in which Lennar Corporation has a controlling interest and VIEs (see Note 8) in which Lennar Corporation is deemed the primary beneficiary (the "Company"). The Company’s investments in both unconsolidated entities in which a significant, but less than controlling, interest is held and in VIEs in which the Company is not deemed to be the primary beneficiary are accounted for by the equity method. All intercompany transactions and balances have been eliminated in consolidation. |
Use Of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Revenue Recognition | Homebuilding revenues and related profits from sales of homes are recognized at the time of the closing of a sale, when title to and possession of the property are transferred to the homebuyer. The Company’s performance obligation, to deliver the agreed-upon home, is generally satisfied in less than one year from the original contract date. Cash proceeds from home closings held in escrow for the Company’s benefit, typically for approximately three to four days, are included in Homebuilding cash and cash equivalents in the Company's consolidated balance sheets. Contract liabilities include customer deposits liabilities related to sold but undelivered homes that are included in other liabilities in the Company's consolidated balance sheets. The Company periodically elects to sell parcels of land to third parties. Cash consideration from land sales is typically due on the closing date, which is generally when performance obligations are satisfied and revenue is recognized as title to and possession of the property are transferred to the buyer.Title premiums on policies issued directly by the Company are recognized as revenue on the effective date of the title policies. Escrow fees and loan origination revenues are recognized at the time the related real estate transactions are completed, usually upon the close of escrow. Revenues from title policies issued by independent agents are recognized as revenue when notice of issuance is received from the agent, which is generally when cash payment is received by the Company. Expected gains and losses from the sale of loans and their related servicing rights are included in the measurement of all written loan commitments that are accounted for at fair value through earnings at the time of commitment. Interest income on loans held-for-sale and loans held-for-investment is recognized as earned over the terms of the mortgage loans based on the contractual interest rates. Management Fees and General Contractor Revenue The Multifamily segment provides management services with respect to the development, construction and property management of rental projects in joint ventures in which the Company has investments. As a result, the Multifamily segment earns and receives fees, which are generally based upon a stated percentage of development and construction costs and a percentage of gross rental collections. In addition, the Multifamily segment provides general contractor services for the construction of some of its rental projects. Both management fees and general contractor revenue are recognized over the period in which the services are performed using an input method, which properly depicts the level of effort required to complete the management or construction services. These customer contracts require the Company to provide management and general |
Advertising Costs | The Company expenses advertising costs as incurred. |
Share-Based Payments | The Company has share-based awards outstanding under the 2016 Equity Incentive Plan (the "Plan"), which provides for the granting of stock options, stock appreciation rights, restricted common stock ("nonvested shares") and other share based awards to officers, associates and directors. The exercise prices of stock options may not be less than the market value of the common stock on the date of the grant. Exercises are permitted in installments determined when options are granted. Each stock option will expire on a date determined at the time of the grant, but not more than 10 years after the date of the grant. The Company accounts for stock option awards and nonvested share awards granted under the Plan based on the estimated grant date fair value. |
Cash And Cash Equivalents | The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Due to the short maturity period of cash equivalents, the carrying amounts of these instruments approximate their fair values. Homebuilding restricted cash consists of customer deposits on home sales held in restricted accounts until title transfers to the homebuyer, as required by the state and local governments in which the homes were sold, as well as funds on deposit to secure and support performance obligations. Financial Services restricted cash consists of upfront deposits and application fees LMF Commercial receives before originating loans and is recognized as income once the loan has been originated, as well as cash held in escrow by the Company’s loan service provider on behalf of customers and lenders and is disbursed in accordance with agreements between the transacting parties. |
Restricted Cash | The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Due to the short maturity period of cash equivalents, the carrying amounts of these instruments approximate their fair values. Homebuilding restricted cash consists of customer deposits on home sales held in restricted accounts until title transfers to the homebuyer, as required by the state and local governments in which the homes were sold, as well as funds on deposit to secure and support performance obligations. Financial Services restricted cash consists of upfront deposits and application fees LMF Commercial receives before originating loans and is recognized as income once the loan has been originated, as well as cash held in escrow by the Company’s loan service provider on behalf of customers and lenders and is disbursed in accordance with agreements between the transacting parties. |
Receivables | At November 30, 2021 and 2020, Homebuilding accounts receivable related primarily to other receivables and rebates. The Company performs ongoing credit evaluations of its customers and generally does not require collateral for accounts receivable. Mortgages and notes receivable arising from the sale of homes and land are generally collateralized by the property sold to the buyer. Allowances are maintained for potential credit losses based on historical experience, present economic conditions and other factors considered relevant by the Company. |
Inventories | Finished homes and construction in progress are included within inventories. Inventories are stated at cost unless the inventory within a community is determined to be impaired, in which case the impaired inventory is written down to fair value. Inventory costs include land, land development and home construction costs, real estate taxes, deposits on land purchase contracts and interest related to development and construction. Construction overhead and selling expenses are expensed as incurred. Homes held-for-sale are classified as inventories until delivered. Land, land development, amenities and other costs are accumulated by specific area and allocated to homes within the respective areas. The Company reviews its inventory for indicators of impairment by evaluating each community during each reporting period. The inventory within each community is categorized as finished homes and construction in progress or land under development based on the development state of the community. There were 1,259 and 1,173 active communities, excluding unconsolidated entities, as of November 30, 2021 and 2020, respectively. If the undiscounted cash flows expected to be generated by a community are less than its carrying amount, an impairment charge is recorded to write down the carrying amount of such community to its estimated fair value. In conducting its review for indicators of impairment on a community level, the Company evaluates, among other things, the margins on homes that have been delivered, margins on homes under sales contracts in backlog, projected margins with regard to future home sales over the life of the community, projected margins with regard to future land sales and the estimated fair value of the land itself. The Company pays particular attention to communities in which inventory is moving at a slower than anticipated absorption pace and communities whose average sales price and/or margins are trending downward and are anticipated to continue to trend downward. From this review, the Company identifies communities in which to assess if the carrying values exceed their undiscounted projected cash flows. The Company estimates the fair value of its communities using a discounted cash flow model. The projected cash flows for each community are significantly impacted by estimates related to market supply and demand, product type by community, homesite sizes, sales pace, sales prices, sales incentives, construction costs, sales and marketing expenses, the local economy, competitive conditions, labor costs, costs of materials and other factors for that particular community. Every division evaluates the historical performance of each of its communities as well as current trends in the market and economy impacting the community and its surrounding areas. These trends are analyzed for each of the estimates listed above. Each of the homebuilding markets in which the Company operates is unique, as homebuilding has historically been a local business driven by local market conditions and demographics. Each of the Company’s homebuilding markets has specific supply and demand relationships reflective of local economic conditions. The Company’s projected cash flows are impacted by many assumptions. Some of the most critical assumptions in the Company’s cash flow model are projected absorption pace for home sales, sales prices and costs to build and deliver homes on a community by community basis. In order to arrive at the assumed absorption pace for home sales and the assumed sales prices included in the Company’s cash flow model, the Company analyzes its historical absorption pace and historical sales prices in the community and in other comparable communities in the geographical area. In addition, the Company considers internal and external market studies and places greater emphasis on more current metrics and trends, which generally include, but are not limited to, statistics and forecasts on population demographics and on sales prices in neighboring communities, unemployment rates and availability and sales prices of competing product in the geographical area where the community is located as well as the absorption pace realized in its most recent quarters and the sales prices included in the Company's current backlog for such communities. Generally, if the Company notices a variation from historical results over a span of two fiscal quarters, the Company considers such variation to be the establishment of a trend and adjusts its historical information accordingly in order to develop assumptions on the projected absorption pace and sales prices in the cash flow model for a community. In order to arrive at the Company’s assumed costs to build and deliver homes, the Company generally assumes a cost structure reflecting contracts currently in place with its vendors adjusted for any anticipated cost reduction initiatives or increases in cost structure. Those costs assumed are used in the cash flow model for the Company’s communities. Since the estimates and assumptions included in the Company’s cash flow models are based upon historical results and projected trends, they do not anticipate unexpected changes in market conditions or strategies that may lead the Company to incur additional impairment charges in the future. The determination of fair value requires discounting the estimated cash flows at a rate the Company believes a market participant would determine to be commensurate with the inherent risks associated with the assets and related estimated cash flow streams. The discount rate used in determining each asset’s fair value depends on the community’s projected life and development stage. The Company estimates the fair value of inventory evaluated for impairment based on market conditions and assumptions made by management at the time the inventory is evaluated, which may differ materially from actual results if market conditions or assumptions change. For example, changes in market conditions and other specific developments or changes in assumptions may cause the Company to re-evaluate its strategy regarding previously impaired inventory, as well as inventory not currently impaired but for which indicators of impairment may arise if market deterioration occurs, and certain other assets that could result in further valuation adjustments and/or additional write-offs of option deposits and pre-acquisition costs due to abandonment of those options contracts. |
Inventories, Land Under Option Contracts | The Company also has access to land inventory through option contracts, which generally enables the Company to defer acquiring portions of properties owned by third parties (including land funds) and unconsolidated entities until it has determined whether to exercise its option. A majority of the Company’s option contracts require a non-refundable cash deposit or irrevocable letter of credit based on a percentage of the purchase price of the land. The Company’s option contracts sometimes include price adjustment provisions, which adjust the purchase price of the land to its approximate fair value at the time of acquisition or are based on the fair value at the time of takedown. In determining whether to walk away from an option contract, the Company evaluates the option primarily based upon its expected cash flows from the property under option. If the Company intends to walk away from an option contract, it records a charge to earnings in the period such decision is made for the deposit amount and any related pre-acquisition costs associated with the option contract. Some option contracts contain a predetermined take-down schedule for the optioned land parcels. However, in almost all instances, the Company is not required to purchase land in accordance with those take-down schedules. In substantially all instances, the Company has the right and ability to not exercise its option and forfeit its deposit without further penalty, other than termination of the option and loss of any unapplied portion of its deposit and pre-acquisition costs. Therefore, in substantially all instances, the Company does not consider the take-down price to be a firm contractual obligation. When the Company does not intend to exercise an option, it writes off any unapplied deposit and pre-acquisition costs associated with the option contract. |
Investments in Unconsolidated Entities | The Company evaluates the long-lived assets in unconsolidated entities for indicators of impairment during each reporting period. If a valuation adjustment is recorded by an unconsolidated entity related to its assets, the Company generally uses a discount rate between 10% and 20%, subject to the perceived risks associated with the community’s cash flow streams relative to its inventory or operating assets. The Company’s proportionate share of a valuation adjustment is reflected in the Company's Homebuilding, Multifamily or Lennar Other equity in earnings (loss) from unconsolidated entities with a corresponding decrease to its Homebuilding, Multifamily or Lennar Other investment in unconsolidated entities. Additionally, the Company evaluates if a decrease in the value of an investment below its carrying value is other-than-temporary. This evaluation includes certain critical assumptions made by management: (1) projected future distributions from the unconsolidated entities, (2) discount rates applied to the future distributions and (3) various other factors, which include age of the venture, relationships with the other partners and banks, general economic market conditions, land status and liquidity needs of the unconsolidated entity. If the decline in the fair value of the investment is other-than-temporary, then these losses are included in Homebuilding other income, net, Multifamily other gain (loss) or Lennar Other other gain (loss). The Company tracks its share of cumulative earnings and distributions of its joint ventures ("JVs"). For purposes of classifying distributions received from JVs in the Company’s consolidated statements of cash flows, cumulative distributions are treated as returns on capital to the extent of cumulative earnings and included in the Company’s consolidated statements of cash flows as operating activities. Cumulative distributions in excess of the Company’s share of cumulative earnings are treated as returns of capital and included in the Company’s consolidated statements of cash flows as cash from investing activities. |
Variable Interest Entities | GAAP requires the assessment of whether an entity is a VIE and, if so, if the Company is the primary beneficiary at the inception of the entity or at a reconsideration event. Additionally, GAAP requires the consolidation of VIEs in which an enterprise has a controlling financial interest. A controlling financial interest will have both of the following characteristics: (a) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company’s variable interest in VIEs may be in the form of (1) equity ownership, (2) contracts to purchase assets, (3) management and development agreements between the Company and a VIE, (4) loans provided by the Company to a VIE or other partner and/or (5) guarantees provided by members to banks and other third parties. The Company examines specific criteria and uses its judgment when determining if it is the primary beneficiary of a VIE. Factors considered in determining whether the Company is the primary beneficiary include risk and reward sharing, experience and financial condition of other partner(s), voting rights, involvement in day-to-day capital and operating decisions, representation on a VIE’s executive committee, existence of unilateral kick-out rights or voting rights, level of economic disproportionality, if any, between the Company and the other partner(s) and contracts to purchase assets from VIEs. The determination whether an entity is a VIE and, if so, whether the Company is the primary beneficiary may require it to exercise significant judgment. Generally, all major decision making in the Company’s joint ventures is shared among all partners. In particular, business plans and budgets are generally required to be unanimously approved by all partners. Usually, management and other fees earned by the Company are nominal and believed to be at market and there is no significant economic disproportionality between the Company and other partners. Generally, the Company purchases less than a majority of the JV’s assets and the purchase prices under its option contracts are believed to be at market. Generally, Homebuilding and Multifamily unconsolidated entities become VIEs and consolidate when the other partner(s) lack the intent and financial wherewithal to remain in the entity. As a result, the Company continues to fund operations and debt paydowns through partner loans or substituted capital contributions. |
Goodwill | Goodwill Goodwill is recorded with acquisitions of businesses when the purchase price of the business exceeds the fair value of the net tangible and identifiable assets acquired. In accordance with ASC Topic 350, Intangibles-Goodwill and Other ("ASC 350"), the Company evaluates goodwill for potential impairment on at least an annual basis. The Company has the option to perform a qualitative or quantitative assessment to determine whether the fair value of a reporting unit exceeds its carrying value. Qualitative factors may include, but are not limited to economic conditions, industry and market considerations, cost factors, overall financial performance of the reporting units and other entity and reporting unit specific events. The fair value estimate is derived through various valuation methods, including the use of discounted expected future cash flows of each reporting unit. The expected future cash flows for each segment are significantly impacted by current market conditions. If these market conditions and resulting expected future cash flows for each reporting unit decline significantly, the actual results for each segment could differ from the Company's estimate, which would cause goodwill to be impaired. The annual goodwill impairment analysis was performed as of September 30, 2021 and no impairment was recorded. |
Operating Properties And Equipment | Operating properties and equipment are recorded at cost and are included in other assets in the consolidated balance sheets. The assets are depreciated over their estimated useful lives using the straight-line method. At the time operating properties and equipment are disposed of, the asset and related accumulated depreciation are removed from the accounts and any resulting gain or loss is credited or charged to earnings. The estimated useful life for operating properties is 30 years, for furniture, fixtures and equipment is two |
Investment Securities | The Company holds investment securities classified as available-for-sale or held-to-maturity. Available-for-sale securities are recorded at fair value. Any unrealized holding gains or losses on available-for-sale securities are reported as accumulated other comprehensive gain or loss, which is a separate component of stockholders’ equity, net of tax, until realized. Securities classified as held-to-maturity are carried at amortized cost because they are purchased with the intent and ability to hold to maturity. |
Income Taxes | The Company records income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and attributable to operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which the temporary differences are expected to be recovered or paid. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period when the changes are enacted. Interest related to unrecognized tax benefits is recognized in the financial statements as a component of income tax expense. A reduction of the carrying amounts of deferred tax assets by a valuation allowance is required if, based on the available evidence, it is more likely than not that such assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed each reporting period by the Company based on the consideration of all available positive and negative evidence using a "more-likely-than-not" standard with respect to whether deferred tax assets will be realized. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, actual earnings, forecasts of future profitability, the duration of statutory carryforward periods, the Company’s experience with loss carryforwards not expiring unused and tax planning alternatives. |
Other Liabilities | Reflected within the consolidated balance sheets, the other liabilities balance as of November 30, 2021 and 2020, included accrued interest payable, product warranty (as noted below), accrued bonuses, accrued wages and benefits, lease liabilities, deferred income, customer deposits, income taxes payable, and other accrued liabilities. |
Product Warranty | Warranty and similar reserves for homes are established at an amount estimated to be adequate to cover potential costs for materials and labor with regard to warranty-type claims expected to be incurred subsequent to the delivery of a home. Reserves are determined based on historical data and trends with respect to similar product types and geographical areas. The Company regularly monitors the warranty reserve and makes adjustments to its pre-existing warranties in order to reflect changes in trends and historical data as information becomes available. Warranty reserves are included in Homebuilding other liabilities in the consolidated balance sheets. |
Self-Insurance | Certain insurable risks such as construction defects, general liability, medical and workers’ compensation are self-insured by the Company up to certain limits. Undiscounted accruals for claims under the Company’s self-insurance program are based on claims filed and estimates for claims incurred but not yet reported. The Company’s self-insurance reserve, net of expected recoveries, as of November 30, 2021 and 2020 was $169.1 million and $125.4 million which is included in Homebuilding other liabilities. Amounts incurred in excess of the Company's self-insurance occurrence or aggregate retention limits are covered by insurance up to the Company's purchased coverage levels. The Company's insurance policies are maintained with highly-rated underwriters for whom the Company believes counterparty default risk is not significant. |
Earnings Per Share | Basic earnings per share is computed by dividing net earnings attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in earnings of the Company. All outstanding nonvested shares that contain non-forfeitable rights to dividends or dividend equivalents that participate in undistributed earnings with common stock are considered participating securities and are included in computing earnings per share pursuant to the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating securities according to dividends or dividend equivalents and participation rights in undistributed earnings. The Company’s restricted common stock ("nonvested shares") are considered participating securities. |
Restrictions on Payment of Dividends | There are no restrictions on the payment of dividends on common stock by the Company. There are no agreements which restrict the payment of dividends by subsidiaries of the Company other than the need to maintain the financial ratios and net worth requirements under the Financial Services segment’s warehouse lines of credit, which restrict the payment of dividends from the Company’s mortgage subsidiaries following the occurrence and during the continuance of an event of default thereunder and limit dividends to 50% of net income in the absence of an event of default. |
401 (k) Plan | Under the Company’s 401(k) Plan (the "Plan"), contributions made by associates can be invested in a variety of mutual funds or proprietary funds provided by the Plan trustee. The Company may also make contributions for the benefit of associates. The Company records as compensation expense its contribution to the Plan. |
Loans Held-for-Sale | Loans held-for-sale by the Financial Services segment, including the rights to service the mortgage loans, are carried at fair value and changes in fair value are reflected in earnings. Premiums and discounts recorded on these loans are presented as an adjustment to the carrying amount of the loans and are not amortized. Management believes carrying loans held-for-sale at fair value improves financial reporting by mitigating volatility in reported earnings caused by measuring the fair value of the loans and the derivative instruments used to economically hedge them without having to apply complex hedge accounting provisions. In addition, the Financial Services segment recognizes the fair value of its rights to service a mortgage loan as revenue upon entering into an interest rate lock loan commitment with a borrower. The fair value of these servicing rights is included in Financial Services' other assets as of November 30, 2021 and 2020. Fair value of the servicing rights is determined based on values in the Company’s servicing sales contracts. The originated mortgage loans are classified as loans held-for-sale and are recorded at fair value. The Company elected the fair value option for LMF Commercial's loans held-for-sale in accordance with Accounting Standards Codification ("ASC") 825, Financial Instruments |
Provision for Losses | The Company establishes reserves for possible losses associated with mortgage loans previously originated and sold to investors based upon, among other things, an analysis of repurchase requests received, an estimate of potential repurchase claims not yet received and actual past repurchases and losses through the disposition of affected loans, as well as previous settlements. Loan origination liabilities are included in Financial Services’ liabilities in the consolidated balance sheets. |
Loans Held-for-Investment, Net | Loans for which the Company has the positive intent and ability to hold to maturity consist of mortgage loans carried at the principal amount outstanding, net of unamortized discounts and allowance for loan losses. Discounts are amortized over the estimated lives of the loans using the interest method. The Financial Services segment also provides an allowance for credit losses. The provision recorded and the adequacy of the related allowance is determined by management’s continuing evaluation of the loan portfolio in light of past loan loss experience, credit worthiness and nature of underlying collateral, present economic conditions and other factors considered relevant by the Company’s management. Anticipated changes in economic factors, which may influence the level of the allowance, are considered in the evaluation by the Company’s management when the likelihood of the changes can be reasonably determined. While the Company’s management uses the best information available to make such evaluations, future adjustments to the allowance may be necessary as a result of future economic and other conditions that may be beyond management’s control. |
Derivative Financial Instruments | The Financial Services segment, in the normal course of business, uses derivative financial instruments to reduce its exposure to fluctuations in mortgage-related interest rates. The segment uses mortgage-backed securities ("MBS") forward commitments, option contracts, future contracts and investor commitments to protect the value of fixed rate-locked loan commitments and loans held-for-sale from fluctuations in mortgage-related interest rates. These derivative financial instruments are carried at fair value with the changes in fair value included in Financial Services revenues. |
New Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13") . ASU 2016-13 significantly changes the impairment model for most financial assets and certain other instruments. ASU 2016-13 requires immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, which generally results in earlier recognition of allowances for credit losses on loans and other financial instruments. ASU 2016-13 was effective for the Company's fiscal year beginning December 1, 2020. The adoption of ASU 2016-13 did not have a material impact on the Company's consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Accounting for Goodwill Impairment ("ASU 2017-04"). ASU 2017-04 removes the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. A goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 was effective for the Company’s fiscal year beginning December 1, 2020. The adoption of ASU 2017-04 did not have a material impact on the Company's consolidated financial statements. New Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes ("ASU 2019-12"). ASU 2019- 12 will be effective for the Company’s fiscal year beginning December 1, 2022. The Company believes, the adoption of ASU 2019-12 will not have a material impact on the Company's consolidated financial statements . Reclassifications Certain prior year amounts in the consolidated financial statements have been reclassified to conform with the 2021 presentation. The Company reclassified the balance of its investment in Doma, formerly States Title, to which the Company sold the majority of the Financial Services segment's retail title agency business and title insurance underwriter in the first quarter of 2019, from the Financial Services segment to the Lennar Other segment in the consolidated balance sheets for all periods presented. This was reclassified to be included in the Company's strategic technology investments as the entity had announced that it would merge with a publicly traded special purpose acquisition company and during the year ended November 30, 2021 completed the merger and became a publicly traded entity. In addition, the Company reflected its contributions to its charitable foundation in a new line on its consolidated statements of operations for all periods presented. This was previously reflected in the Corporate general and administrative line. These reclassifications had no impact on the company's total assets, total equity, revenues or net earnings in its consolidated financial statements. |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Nov. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule Of Lennar Homebuilding Receivables | Balances for the years ended November 30, 2021 and 2020 are noted below: November 30, (In thousands) 2021 2020 Accounts receivable $ 245,004 133,560 Mortgages and notes receivable 247,805 167,909 492,809 301,469 Allowance for credit losses (2,531) (2,798) Receivables, net (1) $ 490,278 298,671 (1) At November 30, 2021, receivables, net included an $85 million short-term loan due from Upward America that was repaid subsequent to November 30, 2021. LMF Commercial originated commercial loans as follows: November 30, (Dollars in thousands) 2021 2020 Originations (1) $ 770,107 703,777 Sold $ 931,023 705,089 Securitizations 6 5 (1) During both the year ended November 30, 2021 and 2020 all the commercial loans originated were recorded as loans held-for-sale, which are held at fair value. |
Communities Reviewed for Indicators of Impairment and Communities with Valuation Adjustments Needed | The table below summarizes communities reviewed for indicators of impairment and communities with valuation adjustments recorded: At November 30, Communities with valuation adjustments # of communities with potential indicator of impairment # of communities Fair Value Valuation Adjustments 2021 4 1 $ 5,267 $ 11,849 2020 10 16 79,734 44,811 Years Ended November 30, 2021 2020 2019 (In thousands) Fair Carrying Value Fair Value Total Carrying Value Fair Value Total Losses, Net (1) Carrying Value Fair Value Total Losses, Net (1) Non-financial assets Homebuilding: Finished homes and construction in progress (2) Level 3 $ 32,364 16,342 (16,022) 176,637 148,684 (27,953) 218,942 205,201 (13,741) Land and land under development (2) Level 3 35,775 26,841 (8,934) 182,137 92,355 (89,782) 121,564 82,816 (38,748) Other assets (2) Level 3 12,764 12,024 (740) — — — 60,363 56,727 (3,636) (1) Represents losses due to valuation adjustments, write-offs, gains (losses) from transfers or acquisitions of real estate through foreclosure and REO impairments recorded during the year. (2) Valuation adjustments for finished homes, construction in progress and land and land under development were included in Homebuilding costs and expenses and valuation adjustments for other assets were included in homebuilding other income (expense), net in the Company's consolidated statements of operations for the years ended November 30, 2021, 2020 and 2019. |
Schedule of Significant Unobservable Inputs Used to Determine Fair Value of Communities | The table below summarizes the most significant unobservable inputs used in the Company's discounted cash flow model to determine the fair value of its communities for which the Company recorded valuation adjustments during the years ended November 30, 2021 and 2020: Years Ended November 30, 2021 2020 Unobservable inputs Range Average selling price $635,000 $201,000 - $970,000 Absorption rate per quarter (homes) 11 3 - 15 Discount rate 20% 20% November 30, 2021 Discount rates at purchase 6% — 84% Coupon rates 2.0% — 5.3% Distribution dates October 2027 — December 2028 Stated maturity dates October 2050 — December 2051 November 30, 2021 Unobservable inputs Mortgage prepayment rate 13 % Discount rate 13 % Delinquency rate 4 % |
Schedule Of Operating Properties And Equipment | Operating properties and equipment are included in Homebuilding other assets in the consolidated balance sheets and were as follows: November 30, (In thousands) 2021 2020 Operating properties (1) $ 309,367 386,646 Leasehold improvements 56,620 57,084 Furniture, fixtures and equipment 172,774 145,307 538,761 589,037 Accumulated depreciation and amortization (198,855) (177,519) $ 339,906 411,518 (1) Operating properties primarily include solar systems, rental operations and commercial properties. |
Schedule Of Interest Expense | Interest expense was included in costs of homes sold, costs of land sold and other interest expense as follows: Years Ended November 30, (In thousands) 2021 2020 2019 Interest expense in costs of homes sold $ 342,756 349,109 371,821 Interest expense in costs of land sold 2,475 2,594 5,554 Other interest expense (1) 20,142 22,401 17,620 Total interest expense $ 365,373 374,104 394,995 (1) Included in Homebuilding other income (expense), net. |
Schedule Of Warranty Reserve | The activity in the Company’s warranty reserve was as follows: Years Ended November 30, (In thousands) 2021 2020 Warranty reserve, beginning of year $ 341,765 294,138 Warranties issued 217,641 191,311 Adjustments to pre-existing warranties from changes in estimates (1) 29,436 29,461 Payments (211,821) (173,145) Warranty reserve, end of year $ 377,021 341,765 (1) The adjustments to pre-existing warranties from changes in estimates during the years ended November 30, 2021 and 2020 primarily related to specific claims in certain of the Company's homebuilding communities and other adjustments. |
Repurchase of Company's Common Stock | The following table provides information about the Company’s repurchases of Class A and Class B common stock for the years ended November 30, 2021 and 2020: Years Ended November 30, 2021 November 30, 2020 (Dollars in thousands, except price per share) Class A Class B Class A Class B Shares repurchased 13,910,000 100,000 4,250,000 115,000 Principal $ 1,357,081 $ 8,197 $ 282,274 $ 6,155 Average price per share $ 97.56 $ 81.97 $ 66.42 $ 53.52 |
Compensation Expense Related to Company's Share-based Awards | Compensation expense related to the Company’s share-based awards was as follows: Years Ended November 30, (In thousands) 2021 2020 2019 Total compensation expense for nonvested share-based awards $ 135,090 107,131 86,940 |
Schedule of Nonvested Shares Activity | A summary of the Company’s nonvested shares activity for the year ended November 30, 2021 was as follows: Shares Weighted Average Grant Date Fair Value Nonvested shares at November 30, 2020 3,546,576 $ 55.01 Grants 1,562,138 $ 80.95 Vested (1,829,016) $ 57.56 Forfeited (115,908) $ 62.49 Nonvested shares at November 30, 2021 3,163,790 $ 66.07 |
Loan Origination Liabilities | The activity in the Company’s loan origination liabilities was as follows: Years Ended November 30, (In thousands) 2021 2020 Loan origination liabilities, beginning of year $ 7,569 9,364 Provision for losses 4,639 11,924 Payments/settlements (538) (13,719) Loan origination liabilities, end of year $ 11,670 7,569 |
Operating And Reporting Segme_2
Operating And Reporting Segments (Tables) | 12 Months Ended |
Nov. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The assets and liabilities related to the Company’s segments were as follows: (In thousands) November 30, 2021 Assets: Homebuilding Financial Multifamily Lennar Total Cash and cash equivalents $ 2,735,213 167,021 16,850 2,660 2,921,744 Restricted cash 21,927 12,012 — — 33,939 Receivables, net (1) 490,278 708,165 98,405 — 1,296,848 Inventories 18,715,304 — 454,093 — 19,169,397 Loans held-for-sale (2) — 1,636,351 — — 1,636,351 Investments in equity securities (3) 1,006,599 1,006,599 Investments available-for-sale (4) — — — 41,654 41,654 Loans held-for-investments, net — 44,582 — — 44,582 Investments held-to-maturity — 157,808 — — 157,808 Investments in unconsolidated entities 972,084 — 654,029 346,270 1,972,383 Goodwill 3,442,359 189,699 — — 3,632,058 Other assets 1,090,654 48,729 88,370 66,662 1,294,415 $ 27,467,819 2,964,367 1,311,747 1,463,845 33,207,778 Liabilities: Notes and other debts payable, net $ 4,652,338 1,726,026 — — 6,378,364 Accounts payable and other liabilities 5,217,904 180,317 288,930 145,981 5,833,132 $ 9,870,242 1,906,343 288,930 145,981 12,211,496 (In thousands) November 30, 2020 Assets: Homebuilding Financial Multifamily Lennar Total Cash and cash equivalents $ 2,703,986 116,171 38,963 3,918 2,863,038 Restricted cash 15,211 54,481 — — 69,692 Receivables, net (1) 298,671 552,779 86,629 — 938,079 Inventories 16,925,228 — 249,920 — 17,175,148 Loans held-for-sale (2) — 1,490,105 — — 1,490,105 Investments in equity securities (3) — — — 68,771 68,771 Investments available-for-sale (4) — — — 53,497 53,497 Loans held-for-investments, net — 72,626 — — 72,626 Investments held-to-maturity — 164,230 — — 164,230 Investments in unconsolidated entities 953,177 — 724,647 387,097 2,064,921 Goodwill 3,442,359 189,699 — — 3,632,058 Other assets 1,190,793 68,027 75,749 8,443 1,343,012 $ 25,529,425 2,708,118 1,175,908 521,726 29,935,177 Liabilities: Notes and other debts payable, net $ 5,955,758 1,463,919 — 1,906 7,421,583 Accounts payable and other liabilities 3,969,893 180,329 252,911 11,060 4,414,193 $ 9,925,651 1,644,248 252,911 12,966 11,835,776 (1) Receivables, net for Financial Services primarily related to loans sold to investors for which the Company had not yet been paid as of November 30, 2021 and November 30, 2020, respectively. (2) Loans held-for-sale related to unsold residential and commercial loans carried at fair value. (3) Investments in equity securities include investments of $100.1 million and $68.8 million without readily available fair values as of November 30, 2021 and November 30, 2020, respectively. (4) Investments available-for-sale are carried at fair value with changes in fair value recorded as a component of accumulated other comprehensive income (loss) on the consolidated balance sheets. Financial information relating to the Company’s segments was as follows: Year ended November 30, 2021 (In thousands) Homebuilding Financial Multifamily Lennar Corporate and Total Revenues $ 25,545,242 898,745 665,232 21,457 — 27,130,676 Operating earnings 5,031,762 491,014 21,453 733,035 — 6,277,264 Corporate general and administrative expenses — — — — (398,381) (398,381) Charitable foundation contribution — — — — (59,825) (59,825) Earnings before income taxes 5,031,762 491,014 21,453 733,035 (458,206) 5,819,058 Year ended November 30, 2020 (In thousands) Homebuilding Financial Multifamily Lennar Corporate and Total Revenues $ 20,981,136 890,311 576,328 41,079 — 22,488,854 Operating earnings (loss) 2,988,907 480,952 22,681 (10,334) — 3,482,206 Corporate general and administrative expenses — — — — (333,446) (333,446) Charitable foundation contribution — — — — (24,972) (24,972) Earnings (loss) before income taxes 2,988,907 480,952 22,681 (10,334) (358,418) 3,123,788 Year ended November 30, 2019 (In thousands) Homebuilding Financial Multifamily Lennar Corporate and Total Revenues $ 20,793,216 824,810 604,700 36,835 — 22,259,561 Operating earnings 2,502,905 224,642 16,390 31,469 — 2,775,406 Corporate general and administrative expenses — — — — (321,188) (321,188) Charitable foundation contribution — — — — (19,926) (19,926) Earnings before income taxes 2,502,905 224,642 16,390 31,469 (341,114) 2,434,292 (1) Operating loss for Lennar Other for the year ended November 30, 2020 included a $25.0 million write-down of assets held by Rialto legacy funds because of the disruption in the capital markets as a result of COVID-19 and the economic shutdown. (2) Corporate and unallocated expenses primarily represent costs of operations at the Company's corporate headquarters in Miami. These operations include the Company's executive offices, information technology, treasury, corporate accounting and tax, legal, internal audit and human resources. Also included are property expenses related to the leases of corporate offices, data processing, general corporate expenses and charitable foundation contribution to the Lennar Foundation. The assets related to the Company's homebuilding segments were as follows: (In thousands) East Central Texas West Other Corporate and Total Balance at November 30, 2021 $ 5,854,057 3,782,847 2,801,192 11,171,741 1,443,163 2,414,819 27,467,819 Balance at November 30, 2020 5,308,114 3,438,600 2,150,916 10,504,374 1,301,618 2,825,803 25,529,425 Financial information relating to the Company’s homebuilding segments was as follows: Year ended November 30, 2021 (In thousands) East Central Texas West Other Total Revenues $ 6,870,944 4,826,535 3,241,321 10,563,756 42,686 25,545,242 Operating earnings (loss) 1,455,432 720,419 730,465 2,192,446 (67,000) 5,031,762 Interest expense 90,314 58,899 28,764 176,633 10,763 365,373 Depreciation and amortization 24,531 16,118 9,821 49,691 1,238 101,399 Net additions to (disposals of) operating properties and equipment 219 239 (9) 26,375 14,950 41,774 Year ended November 30, 2020 (In thousands) East Central Texas West Other Total Revenues $ 5,715,028 4,093,693 2,709,681 8,437,167 25,567 20,981,136 Operating earnings (loss) 933,297 482,929 421,594 1,241,494 (90,407) 2,988,907 Interest expense 93,245 58,777 29,901 178,498 13,683 374,104 Depreciation and amortization 21,504 13,659 9,366 50,316 249 95,094 Net additions to (disposals of) operating properties 955 (11,370) 712 165,869 (32) 156,134 Year ended November 30, 2019 (In thousands) East Central Texas West Other Total Homebuilding Revenues $ 5,717,858 4,120,085 2,578,962 8,227,304 149,007 20,793,216 Operating earnings (loss) 830,619 431,372 285,874 1,050,850 (95,810) 2,502,905 Interest expense 96,569 64,104 37,144 183,906 13,272 394,995 Depreciation and amortization 20,623 11,356 8,395 45,456 369 86,199 Net additions to (disposals of) operating properties and equipment (31,338) 89 950 63,803 (1,214) 32,290 |
Schedule of Line of Credit Facilities | At November 30, 2021, the Financial Services segment had warehouse facilities, all of which were 364-day repurchase facilities and were used to fund residential mortgages or commercial mortgages for LMF Commercial as follows: (In thousands) Maximum Aggregate Commitment Residential facilities maturing: December 2021 (1) $ 500,000 April 2022 700,000 July 2022 600,000 October 2022 500,000 Total - Residential facilities $ 2,300,000 LMF Commercial facilities maturing: December 2021 (1) $ 400,000 November 2022 100,000 July 2023 50,000 Total - LMF Commercial facilities $ 550,000 Total $ 2,850,000 (1) Subsequent to November 30, 2021, the maturity date was extended to December 2022. Borrowings and collateral under the facilities and their prior year predecessors were as follows: November 30, (In thousands) 2021 2020 Borrowings under the residential facilities $ 1,482,258 1,185,797 Collateral under the residential facilities 1,539,641 1,231,619 Borrowings under the LMF Commercial facilities 96,294 124,617 The Company's outstanding letters of credit and surety bonds are described below: November 30, (In thousands) 2021 2020 Performance letters of credit $ 924,584 752,096 Financial letters of credit 425,843 283,193 Surety bonds 3,553,047 3,087,711 Anticipated future costs primarily for site improvements related to performance surety bonds 1,690,861 1,584,642 |
Schedule Of Lennar Homebuilding Receivables | Balances for the years ended November 30, 2021 and 2020 are noted below: November 30, (In thousands) 2021 2020 Accounts receivable $ 245,004 133,560 Mortgages and notes receivable 247,805 167,909 492,809 301,469 Allowance for credit losses (2,531) (2,798) Receivables, net (1) $ 490,278 298,671 (1) At November 30, 2021, receivables, net included an $85 million short-term loan due from Upward America that was repaid subsequent to November 30, 2021. LMF Commercial originated commercial loans as follows: November 30, (Dollars in thousands) 2021 2020 Originations (1) $ 770,107 703,777 Sold $ 931,023 705,089 Securitizations 6 5 (1) During both the year ended November 30, 2021 and 2020 all the commercial loans originated were recorded as loans held-for-sale, which are held at fair value. |
Debt Securities, Held-to-maturity | Details related to Financial Services' CMBS were as follows: (Dollars in thousands) November 30, 2021 November 30, 2020 Carrying value $ 157,808 164,230 Outstanding debt, net of debt issuance costs $ 147,474 153,505 Incurred interest rate 3.4 % 3.4 % |
Schedule of Significant Unobservable Inputs Used to Determine Fair Value of Communities | The table below summarizes the most significant unobservable inputs used in the Company's discounted cash flow model to determine the fair value of its communities for which the Company recorded valuation adjustments during the years ended November 30, 2021 and 2020: Years Ended November 30, 2021 2020 Unobservable inputs Range Average selling price $635,000 $201,000 - $970,000 Absorption rate per quarter (homes) 11 3 - 15 Discount rate 20% 20% November 30, 2021 Discount rates at purchase 6% — 84% Coupon rates 2.0% — 5.3% Distribution dates October 2027 — December 2028 Stated maturity dates October 2050 — December 2051 November 30, 2021 Unobservable inputs Mortgage prepayment rate 13 % Discount rate 13 % Delinquency rate 4 % |
Unrealized Gain (Loss) on Investments | The following is a detail of Lennar Other realized and unrealized gains (losses): Year Ended November 30, (In thousands) 2021 Opendoor (OPEN) mark to market $ 239,312 Hippo (HIPO) mark to market 207,634 SmartRent (SMRT) mark to market 79,483 Sunnova (NOVA) mark to market (8,883) Blend Labs (BLND) mark to market (6,744) Gain on sale of solar business 158,069 Other realized gains 11,705 $ 680,576 |
Lennar Homebuilding Investments
Lennar Homebuilding Investments In Unconsolidated Entities (Tables) | 12 Months Ended |
Nov. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Unconsolidated Entities | The investments in Company's Homebuilding unconsolidated entities were as follows: November 30, (In thousands) 2021 2020 Investments in unconsolidated entities (1) (2) $ 972,084 953,177 Underlying equity in unconsolidated entities' net assets (1) 1,301,719 1,269,701 (1) The basis difference was primarily as a result of the Company contributing its investment in three strategic joint ventures with a higher fair value than book value for an investment in the FivePoint entity and deferring equity in earnings on land sales to the Company. (2) Included in the Company's recorded investments in Homebuilding unconsolidated entities is the Company's 40% ownership of FivePoint. As of November 30, 2021 and 2020, the carrying amount of the Company's investment was $381.6 million and $392.1 million, respectively. Years Ended November 30, (In thousands) 2021 2020 2019 Land sales revenues (1) $ 57,944 99,935 82,966 Management fees and reimbursement of expenses, net of deferrals 16,464 2,363 2,716 (1) The Company does not include in its Homebuilding equity in loss from unconsolidated entities its pro-rata share of unconsolidated entities’ earnings resulting from land sales to its homebuilding divisions. Instead, the Company accounts for those earnings as a reduction of the cost of purchasing the land from the unconsolidated entities. This in effect defers recognition of the Company’s share of the unconsolidated entities’ earnings related to these sales until the Company delivers a home and title passes to a third-party homebuyer. Years Ended November 30, (In thousands) 2021 2020 2019 General contractor services, net of deferrals $ 549,400 400,808 355,388 General contractor costs 533,398 383,649 340,081 Management fee income 56,573 56,253 53,597 November 30, 2021 (In thousands) LMV I LMV II Lennar's carrying value of investments $ 254,732 320,565 Equity commitments 2,204,016 1,257,700 Equity commitments called 2,149,357 1,201,475 Lennar's equity commitments 504,016 381,000 Lennar's equity commitments called 499,031 362,913 Lennar's remaining commitments 4,985 18,087 Distributions to Lennar during the year ended November 30, 2021 67,197 9,672 Summarized condensed financial information on a combined 100% basis related to the Company's unconsolidated entities that are accounted for under the equity method was as follows: (In thousands) November 30, 2021 Assets: Homebuilding Multifamily Lennar Total Cash and cash equivalents $ 460,901 25,972 430,807 917,680 Loans receivable — — 65,971 65,971 Real estate owned — — 279,200 279,200 Investment securities — — 2,461,788 2,461,788 Investments in partnerships — — 346,042 346,042 Inventories 4,666,454 — — 4,666,454 Operating properties and equipment 44,802 6,406,500 — 6,451,302 Other assets 1,044,771 111,750 219,680 1,376,201 $ 6,216,928 6,544,222 3,803,488 16,564,638 Liabilities and equity: Accounts payable and other liabilities $ 904,078 240,928 179,879 1,324,885 Debt (1) 1,216,721 3,407,362 399,632 5,023,715 Equity 4,096,129 2,895,932 3,223,977 10,216,038 $ 6,216,928 6,544,222 3,803,488 16,564,638 Investments in unconsolidated entities $ 972,084 654,029 346,270 1,972,383 (In thousands) November 30, 2020 Assets: Homebuilding Multifamily Lennar Total Cash and cash equivalents $ 546,013 94,801 284,517 814,222 Loans receivable — — 95,281 95,281 Real estate owned — — 295,391 295,391 Investment securities — — 2,169,480 2,093,766 Investments in partnerships — — 260,721 260,721 Inventories 4,527,371 — — 4,527,371 Operating properties and equipment 148,020 5,392,681 23,968 5,564,669 Other assets 862,875 115,968 1,263,881 2,077,942 $ 6,084,279 5,603,450 4,393,239 15,729,363 Liabilities and equity: Accounts payable and other liabilities $ 866,812 219,522 190,384 1,117,447 Debt (1) 1,085,639 2,519,567 292,313 3,897,519 Equity 4,131,828 2,864,361 3,910,542 10,714,397 $ 6,084,279 5,603,450 4,393,239 15,729,363 Investments in unconsolidated entities $ 953,177 724,647 387,097 2,064,921 (1) Debt noted above is net of debt issuance costs. As of November 30, 2021 and 2020 this includes $11.9 million and $11.8 million, respectively, for Homebuilding, $23.4 million and $31.1 million, respectively, for Multifamily and an immaterial amount of debt issuance costs for Lennar Other. (In thousands) Statement of Operations Years Ended: Revenues Cost and expenses Other income (expense), net (1) Net earnings (loss) of unconsolidated entities Equity in earnings (loss) from unconsolidated entities November 30, 2021 $ 1,383,266 1,448,775 187,625 122,116 48,993 November 30, 2020 1,362,686 1,221,873 (244,680) (103,867) (13,939) November 30, 2019 782,712 774,550 347,018 355,180 13,393 (1) Other income (expense), net included realized and unrealized gains (losses) on investments. |
Lennar Homebuilding Senior No_2
Lennar Homebuilding Senior Notes And Other Debts Payable (Tables) | 12 Months Ended |
Nov. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule Of Senior Notes And Other Debts Payable | November 30, (Dollars in thousands) 2021 2020 4.750% senior notes due 2022 $ 573,840 572,724 4.875% senior notes due December 2023 398,345 397,347 4.500% senior notes due 2024 648,253 647,528 5.875% senior notes due 2024 438,810 443,484 4.750% senior notes due 2025 498,446 498,002 5.25% senior notes due 2026 405,497 406,709 5.00% senior notes due 2027 352,124 352,508 4.75% senior notes due 2027 895,510 894,760 6.25% senior notes due December 2021 — 305,221 4.125% senior notes due 2022 — 598,876 5.375% senior notes due 2022 — 255,342 Mortgage notes on land and other debt 441,513 583,257 $ 4,652,338 5,955,758 The terms of each of the Company's senior notes outstanding at November 30, 2021 were as follows: Senior Notes Outstanding (1) Principal Amount Net Proceeds (2) Price Dates Issued (Dollars in thousands) 4.750% senior notes due 2022 $ 575,000 $ 567,585 (4) October 2012, February 2013, April 2013 4.875% senior notes due December 2023 400,000 393,622 99.169 % November 2015 4.500% senior notes due 2024 650,000 644,838 100 % April 2017 5.875% senior notes due 2024 425,000 (3) (3) (3) 4.750% senior notes due 2025 500,000 495,528 100 % April 2015 5.25% senior notes due 2026 400,000 (3) (3) (3) 5.00% senior notes due 2027 350,000 (3) (3) (3) 4.75% senior notes due 2027 900,000 894,650 100 % November 2017 (1) Interest is payable semi-annually for each of the series of senior notes. The senior notes are unsecured and unsubordinated, but are guaranteed by substantially all of the Company's 100% owned homebuilding subsidiaries. (2) The Company generally has historically used the net proceeds for working capital and general corporate purposes, which can include the repayment or repurchase of other outstanding senior notes. (3) These notes were obligations of CalAtlantic when it was acquired, and were subsequently exchanged in part for notes of the Company. As part of purchase accounting, the senior notes have been recorded at their fair value as of the date of acquisition (February 12, 2018). (4) The Company issued $350 million aggregate principal amount at a price of 100%, $175 million aggregate principal amount at a price of 98.073% and $50 million aggregate principal amount at a price of 98.250%. |
Schedule of Line of Credit Facilities | At November 30, 2021, the Financial Services segment had warehouse facilities, all of which were 364-day repurchase facilities and were used to fund residential mortgages or commercial mortgages for LMF Commercial as follows: (In thousands) Maximum Aggregate Commitment Residential facilities maturing: December 2021 (1) $ 500,000 April 2022 700,000 July 2022 600,000 October 2022 500,000 Total - Residential facilities $ 2,300,000 LMF Commercial facilities maturing: December 2021 (1) $ 400,000 November 2022 100,000 July 2023 50,000 Total - LMF Commercial facilities $ 550,000 Total $ 2,850,000 (1) Subsequent to November 30, 2021, the maturity date was extended to December 2022. Borrowings and collateral under the facilities and their prior year predecessors were as follows: November 30, (In thousands) 2021 2020 Borrowings under the residential facilities $ 1,482,258 1,185,797 Collateral under the residential facilities 1,539,641 1,231,619 Borrowings under the LMF Commercial facilities 96,294 124,617 The Company's outstanding letters of credit and surety bonds are described below: November 30, (In thousands) 2021 2020 Performance letters of credit $ 924,584 752,096 Financial letters of credit 425,843 283,193 Surety bonds 3,553,047 3,087,711 Anticipated future costs primarily for site improvements related to performance surety bonds 1,690,861 1,584,642 |
Schedule Of Maturities Of Senior Notes And Other Debts Payable | The minimum aggregate principal maturities of Homebuilding senior notes and other debts payable during the five years subsequent to November 30, 2021 and thereafter are as follows: (In thousands) Debt 2022 $ 718,279 2023 104,387 2024 1,529,977 2025 591,432 2026 402,794 Thereafter 1,294,642 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Nov. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Benefit (Provision) for Income Taxes | The provision for income taxes consisted of the following: Years Ended November 30, (In thousands) 2021 2020 2019 Current: Federal $ 924,474 428,907 298,701 State 245,941 135,246 53,400 $ 1,170,415 564,153 352,101 Deferred: Federal $ 149,349 59,065 165,080 State 42,745 33,017 74,992 192,094 92,082 240,072 $ 1,362,509 656,235 592,173 |
Reconciliation Of Statutory Rate And Effective Tax Rate | A reconciliation of the statutory rate and the effective tax rate was as follows: Percentage of Pretax Income 2021 2020 2019 Statutory rate 21.00 % 21.00 % 21.00 % State income taxes, net of federal income tax benefit 4.03 4.00 4.17 Tax credits (1) (1.73) (4.46) (1.49) Nondeductible compensation 0.49 0.57 0.45 Tax reserves and interest expense, net 0.03 — (0.03) Deferred tax asset valuation allowance, net (0.01) — (0.02) Other (0.29) (0.09) 0.18 Effective rate 23.52 % 21.02 % 24.26 % (1) During fiscal year 2020, Congress extended the new energy efficient home tax credit for homes delivered from 2018 to 2021, with retroactive effect for 2018 and 2019. |
Schedule of Deferred Income Taxes Assets And Liabilities | The tax effects of significant temporary differences that give rise to the net deferred tax assets were as follows: November 30, (In thousands) 2021 2020 Deferred tax assets: Inventory valuation adjustments $ 94,624 136,868 Reserves and accruals 187,466 161,984 Net operating loss carryforwards 74,902 88,021 Capitalized expenses 174,405 130,910 Investments in unconsolidated entities 48,913 67,405 Employee stock incentive plan 37,813 25,060 Other assets 49,828 51,655 Total deferred tax assets 667,951 661,903 Valuation allowance (2,693) (4,411) Total deferred tax assets after valuation allowance 665,258 657,492 Deferred tax liabilities: Capitalized expenses 187,332 181,729 Deferred income 272,827 240,903 Unrealized gains on investments in equity securities 164,534 — Other liabilities 44,810 47,478 Total deferred tax liabilities 669,503 470,110 Net deferred tax assets (liabilities) $ (4,245) 187,382 The detail of the Company's net deferred tax assets (liabilities) was as follows: November 30, (In thousands) 2021 2020 Net deferred tax assets (liabilities): (1) Homebuilding $ 84,198 119,467 Financial Services (1,431) 1,024 Multifamily 64,247 38,155 Lennar Other (151,259) 28,736 Net deferred tax assets (liabilities) $ (4,245) 187,382 (1) Net deferred tax assets and net deferred tax liabilities detailed above are included within other assets and other liabilities in the respective segments. November 30, (In thousands) 2021 2020 Valuation allowance (1) $ (2,693) (4,411) Federal tax effected NOL carryforwards (2) 32,968 36,264 State tax effected NOL carryforwards (3) 41,935 51,757 (1) As of November 30, 2021 and 2020, the deferred tax assets included valuation allowances primarily related to state net operating loss ("NOL") carryforwards that are not more likely than not to be utilized due to an inability to carry back these losses in most states and short carryforward periods that exist in certain states. (2) At November 30, 2021 and 2020, the Company had federal tax effected NOL carryforwards that may be carried forward to offset future taxable income and begin to expire in 2029. (3) At November 30, 2021 and 2020, the Company had state tax effected NOL carryforwards that may be carried forward from 10 to 20 years or indefinitely, depending on the tax jurisdiction, with certain losses expiring between 2022 and 2039. |
Summary Of Changes In Gross Unrecognized Tax Benefits | The following table summarizes the changes in gross unrecognized tax benefits: Years Ended November 30, (In thousands) 2021 2020 2019 Gross unrecognized tax benefits, beginning of year $ 12,285 12,856 14,667 Lapse of statute of limitations — (349) (1,811) Decreases due to settlements with tax authorities — (222) — Gross unrecognized tax benefits, end of year $ 12,285 12,285 12,856 The following summarizes the changes in interest and penalties accrued with respect to gross unrecognized tax benefits: November 30, (In thousands) 2021 2020 Accrued interest and penalties, beginning of the year $ 57,764 55,333 Accrual of interest and penalties (primarily related to state audits) 2,173 2,802 Reduction of interest and penalties — (371) Accrued interest and penalties, end of the year $ 59,937 57,764 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Nov. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | Basic and diluted earnings per share were calculated as follows: Years Ended November 30, (In thousands, except per share amounts) 2021 2020 2019 Numerator: Net earnings attributable to Lennar $ 4,430,111 2,465,036 1,849,052 Less: distributed earnings allocated to nonvested shares 2,690 1,658 420 Less: undistributed earnings allocated to nonvested shares 50,229 26,731 15,722 Numerator for basic earnings per share 4,377,192 2,436,647 1,832,910 Less: net amount attributable to noncontrolling interests in Rialto's Carried Interest Incentive Plan (1) 2,907 8,971 4,204 Numerator for diluted earnings per share $ 4,374,285 2,427,676 1,828,706 Denominator: Denominator for basic earnings per share - weighted average common shares outstanding 306,612 309,406 318,419 Effect of dilutive securities: Share-based payments — 1 3 Denominator for diluted earnings per share - weighted average common shares outstanding 306,612 309,407 318,422 Basic earnings per share $ 14.28 7.88 5.76 Diluted earnings per share $ 14.27 7.85 5.74 (1) The amounts presented above relate to Rialto's Carried Interest Incentive Plan and represent the difference between the advanced tax distributions received by the Lennar Other segment and the amount Lennar, as the parent company, is assumed to own. |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Disclosure (Tables) | 12 Months Ended |
Nov. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts and Estimated Fair Value of Financial Instruments | The following table presents the carrying amounts and estimated fair values of financial instruments held by the Company at November 30, 2021 and 2020, using available market information and what the Company believes to be appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies might have a material effect on the estimated fair value amounts. The table excludes cash and cash equivalents, restricted cash, receivables, net, and accounts payable, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments. November 30, 2021 2020 Fair Value Carrying Fair Carrying Fair (In thousands) Hierarchy Amount Value Amount Value ASSETS Financial Services: Loans held-for-investment, net Level 3 $ 44,582 44,594 72,626 70,808 Investments held-to-maturity Level 3 157,808 184,495 164,230 196,047 LIABILITIES Homebuilding senior notes and other debts payable, net Level 2 $ 4,652,338 5,046,721 5,955,758 6,581,798 Financial Services notes and other debts payable, net Level 2 1,726,026 1,726,860 1,463,919 1,464,850 Lennar Other notes and other debts payable, net Level 2 — — 1,906 1,906 |
Fair Value Measured on a Recurring Basis | The Company’s financial instruments measured at fair value on a recurring basis are summarized below: Fair Value at November 30, (In thousands) Fair 2021 2020 Financial Services Assets: Residential loans held-for-sale Level 2 $ 1,636,283 1,296,517 LMF Commercial loans held-for-sale Level 3 68 193,588 Mortgage servicing rights Level 3 2,492 2,113 Lennar Other: Investments in equity securities Level 1 906,539 — Investments available-for-sale Level 3 41,654 53,497 Residential and LMF Commercial loans held-for-sale in the table above include: November 30, 2021 2020 (In thousands) Aggregate Principal Balance Change in Fair Value Aggregate Principal Balance Change in Fair Value Residential loans held-for-sale $ 1,586,764 49,519 1,232,548 63,969 LMF Commercial loans held-for-sale — 68 194,362 (774) |
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: Years Ended November 30, 2021 2020 (In thousands) Mortgage servicing rights LMF Commercial loans held-for-sale Mortgage servicing rights LMF Commercial loans held-for-sale Beginning of year $ 2,113 193,588 24,679 197,224 Purchases/loan originations 584 774,905 2,378 703,777 Sales/loan originations sold, including those not settled — (931,023) — (705,089) Disposals/settlements (1) (1,365) (35,837) (10,322) — Changes in fair value (2) 1,160 (388) (14,622) (25) Interest and principal paydowns — (1,177) — (2,299) End of year $ 2,492 68 2,113 193,588 (1) The year ended November 30, 2021 includes $28.5 million of loans sold/paid outside of LMF Commercial ’s six securitizations and $7.3 million of loans converted to loans held-for-investment. The year ended November 30, 2020 includes $7.5 million related to the sale of a servicing portfolio. (2) Changes in fair value for LMF Commercial loans held-for-sale and Financial Services mortgage servicing rights are included in Financial Services' revenues. |
Schedule of Gains and Losses of Financial Instruments Measured on a Recurring Basis | The changes in fair values for Level 1 and Level 2 financial instruments measured on a recurring basis are shown below by financial instrument and financial statement line item: Years Ended November 30, (In thousands) 2021 2020 2019 Changes in fair value included in Financial Services revenues: Loans held-for-sale $ (14,449) 21,765 4,891 Mortgage loan commitments (8,302) 12,774 (85) Forward contracts 11,513 (9,805) 6,504 Changes in fair value included in Lennar Other realized and unrealized gains: Investments in equity securities $ 510,802 — — Changes in fair value included in other comprehensive income (loss), net of tax: Lennar Other investments available-for-sale $ (536) (805) — Financial Services investments available-for-sale — (46) 1,040 |
Schedule of Significant Unobservable Inputs Used to Determine Fair Value of Communities | The table below summarizes the most significant unobservable inputs used in the Company's discounted cash flow model to determine the fair value of its communities for which the Company recorded valuation adjustments during the years ended November 30, 2021 and 2020: Years Ended November 30, 2021 2020 Unobservable inputs Range Average selling price $635,000 $201,000 - $970,000 Absorption rate per quarter (homes) 11 3 - 15 Discount rate 20% 20% November 30, 2021 Discount rates at purchase 6% — 84% Coupon rates 2.0% — 5.3% Distribution dates October 2027 — December 2028 Stated maturity dates October 2050 — December 2051 November 30, 2021 Unobservable inputs Mortgage prepayment rate 13 % Discount rate 13 % Delinquency rate 4 % |
Communities Reviewed for Indicators of Impairment and Communities with Valuation Adjustments Needed | The table below summarizes communities reviewed for indicators of impairment and communities with valuation adjustments recorded: At November 30, Communities with valuation adjustments # of communities with potential indicator of impairment # of communities Fair Value Valuation Adjustments 2021 4 1 $ 5,267 $ 11,849 2020 10 16 79,734 44,811 Years Ended November 30, 2021 2020 2019 (In thousands) Fair Carrying Value Fair Value Total Carrying Value Fair Value Total Losses, Net (1) Carrying Value Fair Value Total Losses, Net (1) Non-financial assets Homebuilding: Finished homes and construction in progress (2) Level 3 $ 32,364 16,342 (16,022) 176,637 148,684 (27,953) 218,942 205,201 (13,741) Land and land under development (2) Level 3 35,775 26,841 (8,934) 182,137 92,355 (89,782) 121,564 82,816 (38,748) Other assets (2) Level 3 12,764 12,024 (740) — — — 60,363 56,727 (3,636) (1) Represents losses due to valuation adjustments, write-offs, gains (losses) from transfers or acquisitions of real estate through foreclosure and REO impairments recorded during the year. (2) Valuation adjustments for finished homes, construction in progress and land and land under development were included in Homebuilding costs and expenses and valuation adjustments for other assets were included in homebuilding other income (expense), net in the Company's consolidated statements of operations for the years ended November 30, 2021, 2020 and 2019. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Nov. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Unconsolidated VIEs | At November 30, 2021 and 2020, the Company’s recorded investments in VIEs that are unconsolidated and its estimated maximum exposure to loss were as follows: November 30, 2021 2020 (In thousands) Investments in Unconsolidated VIEs Lennar’s Maximum Exposure to Loss Investments in Lennar’s Maximum Exposure to Loss Homebuilding (1) $ 107,323 301,619 89,654 89,828 Multifamily (2) 579,388 611,937 619,540 717,271 Financial Services (3) 157,808 157,808 164,230 164,230 Lennar Other (4) 12,680 12,680 76,023 130,177 $ 857,199 1,084,044 949,447 1,101,506 (1) As of November 30, 2021 and 2020, the maximum exposure to loss of Homebuilding's investments in unconsolidated VIEs was limited to its investments in unconsolidated VIEs, except as of November 30, 2021, with regard to the Company's remaining commitment to fund capital in the Upward America Venture, a single family for rent platform, and a short-term note provided by the Company to the Upward America Venture. (2) As of November 30, 2021 and 2020, the maximum exposure to loss of Multifamily's investments in unconsolidated VIEs was primarily limited to its investments in the unconsolidated VIEs, except with regard to the remaining equity commitment of $23.1 million and $88.1 million, respectively, to fund LMV I and LMV II for futre expenditures related to the construction and development of its projects. (3) As of both November 30, 2021 and 2020, the maximum exposure to loss of the Financial Services segment was limited to its investment in the unconsolidated entities VIEs and related to the Financial Services' CMBS investments held-to-maturity. (4) At November 30, 2021, the decrease in investments in unconsolidated VIEs and maximum exposure to loss was related to an entity which had a reconsideration event due to the payoff of a note receivable which caused the entity to no longer be considered a VIE. The Company’s exposure to loss related to its option contracts with third parties and unconsolidated entities were as follows: November 30, (In thousands) 2021 2020 Non-refundable option deposits and pre-acquisition costs $ 1,228,057 414,154 Letters of credit in lieu of cash deposits under certain land and option contracts 175,937 87,537 |
Commitments And Contingent Li_2
Commitments And Contingent Liabilities (Tables) | 12 Months Ended |
Nov. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Assets And Liabilities, Lessee | The following table includes additional information about the Company's leases: (Dollars in thousands) November 30, 2021 Right-of-use assets $ 155,616 Lease liabilities $ 163,513 Weighted-average remaining lease term (in years) 8.2 Weighted-average discount rate 2.8% |
Lessee, Operating Lease, Liability, Maturity | The Company has entered into agreements to lease certain office facilities and equipment under operating leases. Future minimum payments under the noncancellable leases in effect at November 30, 2021 were as follows: (In thousands) Lease Payments 2022 $ 40,387 2023 28,878 2024 23,231 2025 18,797 2026 and thereafter 72,852 Total future minimum lease payments (1) $ 184,145 Less: Interest (2) 20,632 Present value of lease liabilities (2) $ 163,513 (1) Future minimum lease payments exclude variable lease costs and short-term lease costs, which were $29.2 million and $1.9 million, respectively, for the year ended November 30, 2021. This also does not include minimum lease payments for executed and legally enforceable leases that have not yet commenced. As of November 30, 2021, the minimum lease payments for these leases that have not yet commenced were immaterial. (2) The Company's leases do not include a readily determinable implicit rate. As such, the Company has estimated the discount rate for these leases to determine the present value of lease payments at the lease commencement date or as of December 1, 2019, which was the effective date of ASU 2016-02. The Company recognized the lease liabilities on its balance sheets within other liabilities |
Lease, Cost | The Company's rental expense was as follows: November 30, (In thousands) 2021 2020 2019 Rental expense $ 84,991 82,090 92,178 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | ||||
Nov. 30, 2021USD ($)votecommunities$ / sharesshares | Nov. 30, 2020USD ($)communities$ / sharesshares | Nov. 30, 2019USD ($)$ / sharesshares | Oct. 31, 2021USD ($)shares | Jan. 31, 2021USD ($)shares | |
Segment Reporting Information [Line Items] | |||||
Advertising costs | $ 74,200,000 | $ 72,600,000 | $ 84,300,000 | ||
Cash held in escrow | $ 940,400,000 | $ 314,300,000 | |||
Escrow deposit period | 3 days | 3 days | |||
Number of active communities | communities | 1,259 | 1,173 | |||
Held-to-maturity securities, term | 3 years | ||||
Deferred tax assets, valuation allowance | $ 2,693,000 | $ 4,411,000 | |||
Self-insurance reserve | $ 169,100,000 | 125,400,000 | |||
Authorized amount under stock repurchase program | $ 1,000,000,000 | $ 1,000,000,000 | |||
Originally authorized shares under the stock repurchase program (in shares) | shares | 25,000,000 | 25,000,000 | |||
Stock repurchase program, value repurchased | $ 1,000,000,000 | ||||
Maximum dividend rate as a percentage of net income in the event of default | 50.00% | ||||
Compensation expense | $ 29,400,000 | 27,300,000 | $ 24,500,000 | ||
Right-of-use assets | 155,616,000 | ||||
Operating lease liability | 163,513,000 | ||||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Available-for-sale securities | 41,654,000 | 53,497,000 | |||
Held-to-maturity securities | 157,808,000 | 164,230,000 | |||
Investments in equity securities | $ 1,006,599,000 | $ 68,771,000 | |||
Executive Chairman | |||||
Segment Reporting Information [Line Items] | |||||
Voting power | 35.00% | ||||
Preferred Stock | |||||
Segment Reporting Information [Line Items] | |||||
Preferred stock, shares authorized (in shares) | shares | 500,000 | ||||
Preferred stock, par value (in usd per share) | $ / shares | $ 10 | ||||
Participating Preferred Stock | |||||
Segment Reporting Information [Line Items] | |||||
Preferred stock, shares authorized (in shares) | shares | 100,000,000 | ||||
Preferred stock, par value (in usd per share) | $ / shares | $ 0.10 | ||||
Preferred stock, shares issued (in shares) | shares | 0 | ||||
Class A Common Stock | |||||
Segment Reporting Information [Line Items] | |||||
Cash dividends (in USD per share) | $ / shares | $ 1 | $ 0.625 | $ 0.16 | ||
Votes per share | vote | 1 | ||||
Class B Common Stock | |||||
Segment Reporting Information [Line Items] | |||||
Cash dividends (in USD per share) | $ / shares | $ 1 | $ 0.625 | $ 0.16 | ||
Votes per share | vote | 10 | ||||
Financial Services | |||||
Segment Reporting Information [Line Items] | |||||
Held-to-maturity securities | $ 157,800,000 | $ 164,200,000 | |||
Financial Services | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Available-for-sale securities | 0 | 0 | |||
Held-to-maturity securities | 157,808,000 | 164,230,000 | |||
Investments in equity securities | 0 | ||||
Lennar Other | |||||
Segment Reporting Information [Line Items] | |||||
Available-for-sale securities | 41,700,000 | 53,500,000 | |||
Lennar Other | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Available-for-sale securities | 41,654,000 | 53,497,000 | |||
Held-to-maturity securities | 0 | 0 | |||
Investments in equity securities | 1,006,599,000 | 68,771,000 | |||
Homebuilding | |||||
Segment Reporting Information [Line Items] | |||||
Interest incurred | 275,100,000 | 353,400,000 | $ 422,700,000 | ||
Interest capitalized | 254,900,000 | 331,000,000 | $ 405,100,000 | ||
Homebuilding | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Available-for-sale securities | 0 | 0 | |||
Held-to-maturity securities | 0 | 0 | |||
Investments in equity securities | $ 0 | ||||
Stock Option Awards | |||||
Segment Reporting Information [Line Items] | |||||
Expiration period | 10 years | ||||
Nonvested shares | |||||
Segment Reporting Information [Line Items] | |||||
Unrecognized compensation expense related to unvested share-based awards granted | $ 118,500,000 | ||||
Weighted average remaining contractual life of unrecognized compensation expense related to unvested share-based awards | 1 year 8 months 12 days | ||||
Nonvested shares vested (in shares) | shares | 1,829,016 | 1,400,000 | 1,400,000 | ||
Discount rate | Minimum | |||||
Segment Reporting Information [Line Items] | |||||
Communities, unobservable inputs | 0.10 | ||||
Discount rate | Maximum | |||||
Segment Reporting Information [Line Items] | |||||
Communities, unobservable inputs | 0.20 | ||||
Operating properties | |||||
Segment Reporting Information [Line Items] | |||||
Estimated useful life | 30 years | ||||
Furniture, fixtures and equipment | Minimum | |||||
Segment Reporting Information [Line Items] | |||||
Estimated useful life | 2 years | ||||
Furniture, fixtures and equipment | Maximum | |||||
Segment Reporting Information [Line Items] | |||||
Estimated useful life | 10 years | ||||
Leasehold improvements | |||||
Segment Reporting Information [Line Items] | |||||
Estimated useful life | 5 years |
Summary Of Significant Accoun_5
Summary Of Significant Accounting Policies (Receivables, Net) (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Nov. 30, 2020 |
Segment Reporting Information [Line Items] | ||
Receivables, gross | $ 492,809 | $ 301,469 |
Receivables, net | 490,278 | 298,671 |
Upward America | ||
Segment Reporting Information [Line Items] | ||
Due from related parties, current | 85,000 | |
Homebuilding | ||
Segment Reporting Information [Line Items] | ||
Accounts receivable | 245,004 | 133,560 |
Mortgages and notes receivable | 247,805 | 167,909 |
Allowance for credit losses | $ (2,531) | $ (2,798) |
Summary Of Significant Accoun_6
Summary Of Significant Accounting Policies Summary of Significant Accounting Policies (Communities with Indicators of Impairment and Communities with Valuation Adjustments Recorded) (Details) $ in Thousands | 12 Months Ended | |
Nov. 30, 2021USD ($)community | Nov. 30, 2020USD ($)community | |
Accounting Policies [Abstract] | ||
# of communities with potential indicator of impairment | community | 4 | 10 |
Communities with valuation adjustments, # of communities | community | 1 | 16 |
Communities with valuation adjustments, Fair Value | $ | $ 5,267 | $ 79,734 |
Communities with valuation adjustments, Valuation Adjustments | $ | $ 11,849 | $ 44,811 |
Summary Of Significant Accoun_7
Summary Of Significant Accounting Policies (Unobservable inputs) (Details) | Nov. 30, 2021homeUSD ($) | Nov. 30, 2020homeUSD ($) |
Average selling price | Level 3 | Discounted Cash Flow Model | Fair Value, Measurements, Nonrecurring | Minimum | ||
Segment Reporting Information [Line Items] | ||
Communities, unobservable inputs | $ | 635,000 | 201,000 |
Average selling price | Level 3 | Discounted Cash Flow Model | Fair Value, Measurements, Nonrecurring | Maximum | ||
Segment Reporting Information [Line Items] | ||
Communities, unobservable inputs | $ | 970,000 | |
Absorption rate per quarter (homes) | Level 3 | Discounted Cash Flow Model | Fair Value, Measurements, Nonrecurring | Minimum | ||
Segment Reporting Information [Line Items] | ||
Communities, unobservable inputs | home | 11 | 3 |
Absorption rate per quarter (homes) | Level 3 | Discounted Cash Flow Model | Fair Value, Measurements, Nonrecurring | Maximum | ||
Segment Reporting Information [Line Items] | ||
Communities, unobservable inputs | home | 15 | |
Discount rate | Minimum | ||
Segment Reporting Information [Line Items] | ||
Communities, unobservable inputs | 0.10 | |
Discount rate | Maximum | ||
Segment Reporting Information [Line Items] | ||
Communities, unobservable inputs | 0.20 | |
Discount rate | Level 3 | Discounted Cash Flow Model | Fair Value, Measurements, Nonrecurring | Minimum | ||
Segment Reporting Information [Line Items] | ||
Communities, unobservable inputs | 0.20 | 0.20 |
Summary Of Significant Accoun_8
Summary Of Significant Accounting Policies (Operating Properties and Equipment) (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Nov. 30, 2020 |
Property, Plant and Equipment [Line Items] | ||
Operating properties and equipment, gross | $ 538,761 | $ 589,037 |
Accumulated depreciation and amortization | (198,855) | (177,519) |
Operating properties and equipment, net | 339,906 | 411,518 |
Operating properties | ||
Property, Plant and Equipment [Line Items] | ||
Operating properties and equipment, gross | 309,367 | 386,646 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Operating properties and equipment, gross | 56,620 | 57,084 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Operating properties and equipment, gross | $ 172,774 | $ 145,307 |
Summary Of Significant Accoun_9
Summary Of Significant Accounting Policies (Schedule Of Interest Expense) (Details) - Homebuilding - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | |
Segment Reporting Information [Line Items] | |||
Other interest expense | $ 20,142 | $ 22,401 | $ 17,620 |
Total interest expense | 365,373 | 374,104 | 394,995 |
Inventory, Homes | |||
Segment Reporting Information [Line Items] | |||
Interest expense | 342,756 | 349,109 | 371,821 |
Inventory, Land | |||
Segment Reporting Information [Line Items] | |||
Interest expense | $ 2,475 | $ 2,594 | $ 5,554 |
Summary Of Significant Accou_10
Summary Of Significant Accounting Policies (Schedule Of Warranty Reserve) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Warranty reserve, beginning of year | $ 341,765 | $ 294,138 |
Warranties issued | 217,641 | 191,311 |
Adjustments to pre-existing warranties from changes in estimates | 29,436 | 29,461 |
Payments | (211,821) | (173,145) |
Warranty reserve, end of year | $ 377,021 | $ 341,765 |
Summary Of Significant Accou_11
Summary Of Significant Accounting Policies (Repurchase of Company's Common Stock) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Class A Common Stock | ||
Class of Stock [Line Items] | ||
Shares repurchased (in shares) | 13,910,000 | 4,250,000 |
Principal | $ 1,357,081 | $ 282,274 |
Average price per share (in usd per share) | $ 97.56 | $ 66.42 |
Class B Common Stock | ||
Class of Stock [Line Items] | ||
Shares repurchased (in shares) | 100,000 | 115,000 |
Principal | $ 8,197 | $ 6,155 |
Average price per share (in usd per share) | $ 81.97 | $ 53.52 |
Summary Of Significant Accou_12
Summary Of Significant Accounting Policies (Compensation Expense Related to the Company's Share-based Awards) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | |
Accounting Policies [Abstract] | |||
Total compensation expense for nonvested share-based awards | $ 135,090 | $ 107,131 | $ 86,940 |
Summary Of Significant Accou_13
Summary Of Significant Accounting Policies (Schedule Of Nonvested Shares Activity) (Details) - Nonvested shares - $ / shares | 12 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | |
Shares | |||
Beginning balance (in shares) | 3,546,576 | ||
Grants (in shares) | 1,562,138 | ||
Vested (in shares) | (1,829,016) | (1,400,000) | (1,400,000) |
Forfeited (in shares) | (115,908) | ||
Ending balance (in shares) | 3,163,790 | 3,546,576 | |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in USD per share) | $ 55.01 | ||
Grants (in USD per share) | 80.95 | $ 60.10 | $ 48.26 |
Vested (in USD per share) | 57.56 | ||
Forfeited (in USD per share) | 62.49 | ||
Ending balance (in USD per share) | $ 66.07 | $ 55.01 |
Summary Of Significant Accou_14
Summary Of Significant Accounting Policies (Loan Origination Liabilities) (Details) - Financial Services - Loan Origination Liabilities - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Loan Origination Liabilities [Roll Forward] | ||
Loan origination liabilities, beginning of year | $ 7,569 | $ 9,364 |
Provision for losses | 4,639 | 11,924 |
Payments/settlements | (538) | (13,719) |
Loan origination liabilities, end of year | $ 11,670 | $ 7,569 |
Operating And Reporting Segme_3
Operating And Reporting Segments (Schedule of Segment Assets and Liabilities) (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | |||
Segment Reporting Information [Line Items] | ||||||
Investments in unconsolidated entities | $ 1,972,383 | $ 2,064,921 | ||||
Total assets | [1] | 33,207,778 | 29,935,177 | |||
Total liabilities | [2] | 12,211,496 | 11,835,776 | |||
Equity Securities without Readily Determinable Fair Value, Amount | 100,100 | 68,800 | ||||
Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Cash and cash equivalents | 2,921,744 | 2,863,038 | ||||
Restricted cash | 33,939 | 69,692 | ||||
Receivables, net | 1,296,848 | 938,079 | ||||
Inventories | 19,169,397 | 17,175,148 | ||||
Loans held-for-sale | 1,636,351 | 1,490,105 | ||||
Investments in equity securities | 1,006,599 | 68,771 | ||||
Loans held-for-investment, net | 44,582 | 72,626 | ||||
Investments held-to-maturity | 157,808 | 164,230 | ||||
Investments available-for-sale | 41,654 | 53,497 | ||||
Investments in unconsolidated entities | 1,972,383 | 2,064,921 | ||||
Goodwill | 3,632,058 | 3,632,058 | ||||
Other assets | 1,294,415 | 1,343,012 | ||||
Total assets | 33,207,778 | 29,935,177 | ||||
Notes and other debts payable, net | 6,378,364 | 7,421,583 | ||||
Other liabilities | 5,833,132 | 4,414,193 | ||||
Total liabilities | 12,211,496 | 11,835,776 | ||||
Homebuilding | ||||||
Segment Reporting Information [Line Items] | ||||||
Cash and cash equivalents | 2,735,213 | [1] | 2,703,986 | [1] | $ 1,200,832 | |
Restricted cash | 21,927 | [1] | 15,211 | [1] | 9,698 | |
Receivables, net | [1] | 490,278 | 298,671 | |||
Inventories | [1] | 18,715,304 | 16,925,228 | |||
Investments in unconsolidated entities | [1] | 972,084 | 953,177 | |||
Goodwill | 3,442,359 | [1] | 3,442,359 | |||
Other assets | [1] | 1,090,654 | 1,190,793 | |||
Total assets | [1] | 27,467,819 | 25,529,425 | |||
Notes and other debts payable, net | [2] | 4,652,338 | 5,955,758 | |||
Total liabilities | [2] | 9,870,242 | 9,925,651 | |||
Homebuilding | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Cash and cash equivalents | 2,735,213 | 2,703,986 | ||||
Restricted cash | 21,927 | 15,211 | ||||
Receivables, net | 490,278 | 298,671 | ||||
Inventories | 18,715,304 | 16,925,228 | ||||
Loans held-for-sale | 0 | 0 | ||||
Investments in equity securities | 0 | |||||
Loans held-for-investment, net | 0 | 0 | ||||
Investments held-to-maturity | 0 | 0 | ||||
Investments available-for-sale | 0 | 0 | ||||
Investments in unconsolidated entities | 972,084 | 953,177 | ||||
Goodwill | 3,442,359 | 3,442,359 | ||||
Other assets | 1,090,654 | 1,190,793 | ||||
Total assets | 27,467,819 | 25,529,425 | ||||
Notes and other debts payable, net | 4,652,338 | 5,955,758 | ||||
Other liabilities | 5,217,904 | 3,969,893 | ||||
Total liabilities | 9,870,242 | 9,925,651 | ||||
Financial Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Cash and cash equivalents | 167,021 | 116,171 | 234,113 | |||
Restricted cash | 12,012 | 54,481 | 12,022 | |||
Investments held-to-maturity | 157,800 | 164,200 | ||||
Total assets | [1] | 2,964,367 | 2,708,118 | |||
Total liabilities | [2] | 1,906,343 | 1,644,248 | |||
Financial Services | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Cash and cash equivalents | 167,021 | 116,171 | ||||
Restricted cash | 12,012 | 54,481 | ||||
Receivables, net | 708,165 | 552,779 | ||||
Inventories | 0 | 0 | ||||
Loans held-for-sale | 1,636,351 | 1,490,105 | ||||
Investments in equity securities | 0 | |||||
Loans held-for-investment, net | 44,582 | 72,626 | ||||
Investments held-to-maturity | 157,808 | 164,230 | ||||
Investments available-for-sale | 0 | 0 | ||||
Investments in unconsolidated entities | 0 | 0 | ||||
Goodwill | 189,699 | 189,699 | ||||
Other assets | 48,729 | 68,027 | ||||
Total assets | 2,964,367 | 2,708,118 | ||||
Notes and other debts payable, net | 1,726,026 | 1,463,919 | ||||
Other liabilities | 180,317 | 180,329 | ||||
Total liabilities | 1,906,343 | 1,644,248 | ||||
Multifamily | ||||||
Segment Reporting Information [Line Items] | ||||||
Cash and cash equivalents | 16,850 | 38,963 | 8,711 | |||
Investments in unconsolidated entities | 654,029 | 724,647 | ||||
Total assets | [1] | 1,311,747 | 1,175,908 | |||
Total liabilities | [2] | 288,930 | 252,911 | |||
Multifamily | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Cash and cash equivalents | 16,850 | 38,963 | ||||
Restricted cash | 0 | 0 | ||||
Receivables, net | 98,405 | 86,629 | ||||
Inventories | 454,093 | 249,920 | ||||
Loans held-for-sale | 0 | 0 | ||||
Investments in equity securities | 0 | |||||
Loans held-for-investment, net | 0 | 0 | ||||
Investments held-to-maturity | 0 | 0 | ||||
Investments available-for-sale | 0 | 0 | ||||
Investments in unconsolidated entities | 654,029 | 724,647 | ||||
Goodwill | 0 | 0 | ||||
Other assets | 88,370 | 75,749 | ||||
Total assets | 1,311,747 | 1,175,908 | ||||
Notes and other debts payable, net | 0 | 0 | ||||
Other liabilities | 288,930 | 252,911 | ||||
Total liabilities | 288,930 | 252,911 | ||||
Lennar Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Cash and cash equivalents | 2,660 | 3,918 | 2,340 | |||
Restricted cash | 0 | 0 | $ 975 | |||
Investments available-for-sale | 41,700 | 53,500 | ||||
Investments in unconsolidated entities | 346,270 | 387,097 | ||||
Total assets | [1] | 1,463,845 | 521,726 | |||
Total liabilities | [2] | 145,981 | 12,966 | |||
Lennar Other | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Cash and cash equivalents | 2,660 | 3,918 | ||||
Restricted cash | 0 | 0 | ||||
Receivables, net | 0 | 0 | ||||
Inventories | 0 | 0 | ||||
Loans held-for-sale | 0 | 0 | ||||
Investments in equity securities | 1,006,599 | 68,771 | ||||
Loans held-for-investment, net | 0 | 0 | ||||
Investments held-to-maturity | 0 | 0 | ||||
Investments available-for-sale | 41,654 | 53,497 | ||||
Investments in unconsolidated entities | 346,270 | 387,097 | ||||
Goodwill | 0 | 0 | ||||
Other assets | 66,662 | 8,443 | ||||
Total assets | 1,463,845 | 521,726 | ||||
Notes and other debts payable, net | 0 | 1,906 | ||||
Other liabilities | 145,981 | 11,060 | ||||
Total liabilities | $ 145,981 | $ 12,966 | ||||
[1] | Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its consolidated balance sheets the assets of consolidated variable interest entities ("VIEs") that are owned by the consolidated VIEs and liabilities of consolidated VIEs as to which there is no recourse against the Company. As of November 30, 2021, total assets include $1.1 billion related to consolidated VIEs of which $60.9 million is included in Homebuilding cash and cash equivalents, $4.4 million in Homebuilding receivables, net, $14.3 million in Homebuilding finished homes and construction in progress, $697.1 million in Homebuilding land and land under development, $239.2 million in Homebuilding consolidated inventory not owned, $1.1 million in Homebuilding investments in unconsolidated entities, $17.4 million in Homebuilding other assets and $80.6 million in Multifamily assets. As of November 30, 2020, total assets include $1.1 billion related to consolidated VIEs of which $32.1 million is included in Homebuilding cash and cash equivalents, $0.1 million in Homebuilding receivables, net, $14.2 million in Homebuilding finished homes and construction in progress, $486.8 million in Homebuilding land and land under development, $426.3 million in Homebuilding consolidated inventory not owned, $1.6 million in Homebuilding investments in unconsolidated entities, $120.6 million in Homebuilding other assets and $39.9 million in Multifamily assets. | |||||
[2] | As of November 30, 2021, total liabilities include $258.5 million related to consolidated VIEs as to which there was no recourse against the Company, of which $26.6 million is included in Homebuilding accounts payable, $196.6 million in Homebuilding liabilities related to consolidated inventory not owned, $20.1 million in Homebuilding senior notes and other debts payable, $12.3 million in Homebuilding other liabilities and $2.8 million in Multifamily liabilities.As of November 30, 2020, total liabilities include $528.5 million related to consolidated VIEs as to which there was no recourse against the Company, of which $28.4 million is included in Homebuilding accounts payable, $351.4 million in Homebuilding liabilities related to consolidated inventory not owned, $129.1 million in Homebuilding senior notes and other debts payable, $9.9 million in Homebuilding other liabilities and $9.8 million in Multifamily liabilities. |
Operating and Reporting Segme_4
Operating and Reporting Segments (Financial Information Relating to Company's Segments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 27,130,676 | $ 22,488,854 | $ 22,259,561 |
Corporate general and administrative expenses | (398,381) | (333,446) | (321,188) |
Contribution Expense | (59,825) | (24,972) | (19,926) |
Earnings before income taxes | 5,819,058 | 3,123,788 | 2,434,292 |
Operating Segments | Homebuilding | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 25,545,242 | 20,981,136 | 20,793,216 |
Operating earnings | 5,031,762 | 2,988,907 | 2,502,905 |
Corporate general and administrative expenses | 0 | 0 | 0 |
Contribution Expense | 0 | 0 | 0 |
Earnings before income taxes | 5,031,762 | 2,988,907 | 2,502,905 |
Operating Segments | Financial Services | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 898,745 | 890,311 | 824,810 |
Operating earnings | 491,014 | 480,952 | 224,642 |
Corporate general and administrative expenses | 0 | 0 | 0 |
Contribution Expense | 0 | 0 | 0 |
Earnings before income taxes | 491,014 | 480,952 | 224,642 |
Operating Segments | Multifamily | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 665,232 | 576,328 | 604,700 |
Operating earnings | 21,453 | 22,681 | 16,390 |
Corporate general and administrative expenses | 0 | 0 | 0 |
Contribution Expense | 0 | 0 | 0 |
Earnings before income taxes | 21,453 | 22,681 | 16,390 |
Operating Segments | Lennar Other | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 21,457 | 41,079 | 36,835 |
Operating earnings | 733,035 | (10,334) | 31,469 |
Corporate general and administrative expenses | 0 | 0 | 0 |
Contribution Expense | 0 | 0 | 0 |
Earnings before income taxes | 733,035 | (10,334) | 31,469 |
Write-down of assets in unconsolidated entities | 25,000 | ||
Corporate and unallocated | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Operating earnings | 0 | 0 | 0 |
Corporate general and administrative expenses | (398,381) | (333,446) | (321,188) |
Contribution Expense | (59,825) | (24,972) | (19,926) |
Earnings before income taxes | (458,206) | (358,418) | (341,114) |
Operating Segments And Corporate Non Segment | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 27,130,676 | 22,488,854 | 22,259,561 |
Operating earnings | 6,277,264 | 3,482,206 | 2,775,406 |
Corporate general and administrative expenses | (398,381) | (333,446) | (321,188) |
Contribution Expense | (59,825) | (24,972) | (19,926) |
Earnings before income taxes | $ 5,819,058 | $ 3,123,788 | $ 2,434,292 |
Operating And Reporting Segme_5
Operating And Reporting Segments (Homebuilding Assets) (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Nov. 30, 2020 | |
Segment Reporting Information [Line Items] | |||
Assets | [1] | $ 33,207,778 | $ 29,935,177 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | 33,207,778 | 29,935,177 | |
Corporate and unallocated | |||
Segment Reporting Information [Line Items] | |||
Assets | 2,414,819 | 2,825,803 | |
East | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | 5,854,057 | 5,308,114 | |
Central | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | 3,782,847 | 3,438,600 | |
Texas | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | 2,801,192 | 2,150,916 | |
West | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | 11,171,741 | 10,504,374 | |
Other | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | 1,443,163 | 1,301,618 | |
Homebuilding | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 27,467,819 | 25,529,425 |
Homebuilding | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | 27,467,819 | 25,529,425 | |
Homebuilding | Operating Segments And Corporate Non Segment | |||
Segment Reporting Information [Line Items] | |||
Assets | $ 27,467,819 | $ 25,529,425 | |
[1] | Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its consolidated balance sheets the assets of consolidated variable interest entities ("VIEs") that are owned by the consolidated VIEs and liabilities of consolidated VIEs as to which there is no recourse against the Company. As of November 30, 2021, total assets include $1.1 billion related to consolidated VIEs of which $60.9 million is included in Homebuilding cash and cash equivalents, $4.4 million in Homebuilding receivables, net, $14.3 million in Homebuilding finished homes and construction in progress, $697.1 million in Homebuilding land and land under development, $239.2 million in Homebuilding consolidated inventory not owned, $1.1 million in Homebuilding investments in unconsolidated entities, $17.4 million in Homebuilding other assets and $80.6 million in Multifamily assets. As of November 30, 2020, total assets include $1.1 billion related to consolidated VIEs of which $32.1 million is included in Homebuilding cash and cash equivalents, $0.1 million in Homebuilding receivables, net, $14.2 million in Homebuilding finished homes and construction in progress, $486.8 million in Homebuilding land and land under development, $426.3 million in Homebuilding consolidated inventory not owned, $1.6 million in Homebuilding investments in unconsolidated entities, $120.6 million in Homebuilding other assets and $39.9 million in Multifamily assets. |
Operating And Reporting Segme_6
Operating And Reporting Segments (Homebuilding Financial Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 27,130,676 | $ 22,488,854 | $ 22,259,561 |
Depreciation and amortization | 85,954 | 94,553 | 92,200 |
Homebuilding | |||
Segment Reporting Information [Line Items] | |||
Interest expense | 365,373 | 374,104 | 394,995 |
Homebuilding | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 25,545,242 | 20,981,136 | 20,793,216 |
Operating earnings | 5,031,762 | 2,988,907 | 2,502,905 |
Interest expense | 365,373 | 374,104 | 394,995 |
Depreciation and amortization | 101,399 | 95,094 | 86,199 |
Net additions to (disposals of) operating properties and equipment | 41,774 | 156,134 | 32,290 |
East | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 6,870,944 | 5,715,028 | 5,717,858 |
Operating earnings | 1,455,432 | 933,297 | 830,619 |
Interest expense | 90,314 | 93,245 | 96,569 |
Depreciation and amortization | 24,531 | 21,504 | 20,623 |
Net additions to (disposals of) operating properties and equipment | 219 | 955 | (31,338) |
Central | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 4,826,535 | 4,093,693 | 4,120,085 |
Operating earnings | 720,419 | 482,929 | 431,372 |
Interest expense | 58,899 | 58,777 | 64,104 |
Depreciation and amortization | 16,118 | 13,659 | 11,356 |
Net additions to (disposals of) operating properties and equipment | 239 | (11,370) | 89 |
Texas | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 3,241,321 | 2,709,681 | 2,578,962 |
Operating earnings | 730,465 | 421,594 | 285,874 |
Interest expense | 28,764 | 29,901 | 37,144 |
Depreciation and amortization | 9,821 | 9,366 | 8,395 |
Net additions to (disposals of) operating properties and equipment | (9) | 712 | 950 |
West | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 10,563,756 | 8,437,167 | 8,227,304 |
Operating earnings | 2,192,446 | 1,241,494 | 1,050,850 |
Interest expense | 176,633 | 178,498 | 183,906 |
Depreciation and amortization | 49,691 | 50,316 | 45,456 |
Net additions to (disposals of) operating properties and equipment | 26,375 | 165,869 | 63,803 |
Other | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 42,686 | 25,567 | 149,007 |
Operating earnings | (67,000) | (90,407) | (95,810) |
Interest expense | 10,763 | 13,683 | 13,272 |
Depreciation and amortization | 1,238 | 249 | 369 |
Net additions to (disposals of) operating properties and equipment | $ 14,950 | $ (32) | $ (1,214) |
Operating And Reporting Segme_7
Operating And Reporting Segments (Financial Services Warehouse Facilities) (Details) - USD ($) | 12 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | |
Short-term Debt [Line Items] | |||
Total revenues | $ 27,130,676,000 | $ 22,488,854,000 | $ 22,259,561,000 |
Warehouse Repurchase Facility | Financial Services | |||
Short-term Debt [Line Items] | |||
Maximum Aggregate Commitment | $ 2,850,000,000 | ||
Warehouse repurchase facility term | 364 days | ||
Residential Warehouse Repurchase Facility Due in January 2021 | Warehouse Repurchase Facility | Financial Services | |||
Short-term Debt [Line Items] | |||
Maximum Aggregate Commitment | $ 500,000,000 | ||
Residential Warehouse Repurchase Facility Due in March 2021 | Warehouse Repurchase Facility | Financial Services | |||
Short-term Debt [Line Items] | |||
Maximum Aggregate Commitment | 700,000,000 | ||
Residential Warehouse Repurchase Facility Due in June 2021 | Warehouse Repurchase Facility | Financial Services | |||
Short-term Debt [Line Items] | |||
Maximum Aggregate Commitment | 600,000,000 | ||
Residential Warehouse Repurchase Facility Due in July 2021 | Warehouse Repurchase Facility | Financial Services | |||
Short-term Debt [Line Items] | |||
Maximum Aggregate Commitment | 500,000,000 | ||
Residential Warehouse Repurchase Facility | Warehouse Repurchase Facility | Financial Services | |||
Short-term Debt [Line Items] | |||
Maximum Aggregate Commitment | 2,300,000,000 | ||
Borrowings under facilities | 1,482,258,000 | 1,185,797,000 | |
Commercial Warehouse Repurchase Facility Due in December 2020 | Warehouse Repurchase Facility | Financial Services | |||
Short-term Debt [Line Items] | |||
Maximum Aggregate Commitment | 100,000,000 | ||
Commercial Warehouse Repurchase Facility Due in November 2021 | Warehouse Repurchase Facility | Financial Services | |||
Short-term Debt [Line Items] | |||
Maximum Aggregate Commitment | 400,000,000 | ||
Commercial Warehouse Repurchase Facility Due in December 2021 | Warehouse Repurchase Facility | Financial Services | |||
Short-term Debt [Line Items] | |||
Maximum Aggregate Commitment | 50,000,000 | ||
Commercial Warehouse Repurchase Facility | Warehouse Repurchase Facility | Financial Services | |||
Short-term Debt [Line Items] | |||
Maximum Aggregate Commitment | 550,000,000 | ||
Borrowings under facilities | $ 96,294,000 | $ 124,617,000 |
Operating And Reporting Segme_8
Operating And Reporting Segments (Narrative) (Details) $ in Thousands, shares in Millions | 12 Months Ended | |
Nov. 30, 2021USD ($)transactionshares | Nov. 30, 2020USD ($)transaction | |
Segment Reporting Information [Line Items] | ||
Investments in unconsolidated entities | $ 1,972,383 | $ 2,064,921 |
Doma Holdings, Inc | ||
Segment Reporting Information [Line Items] | ||
Ownership percentage | 25.00% | |
Investments in unconsolidated entities | $ 53,700 | |
Financial Services | ||
Segment Reporting Information [Line Items] | ||
Origination of loans | 770,107 | 703,777 |
Loans sold | $ 931,023 | $ 705,089 |
Number of securitizations | transaction | 6 | 5 |
Investments held-to-maturity | $ 157,800 | $ 164,200 |
Financial Services | Commercial Mortgage-Backed Securities | Minimum | ||
Segment Reporting Information [Line Items] | ||
Discount rate | 6.00% | |
Coupon rate | 2.00% | |
Financial Services | Commercial Mortgage-Backed Securities | Maximum | ||
Segment Reporting Information [Line Items] | ||
Discount rate | 84.00% | |
Coupon rate | 5.30% | |
Financial Services | Warehouse Repurchase Facility | ||
Segment Reporting Information [Line Items] | ||
Percentage of loan collateralized | 80.00% | |
Lennar Other | ||
Segment Reporting Information [Line Items] | ||
Investments in unconsolidated entities | $ 346,270 | $ 387,097 |
Lennar Other | Level 3 | Terminal Value Multiple | ||
Segment Reporting Information [Line Items] | ||
Discontinued Operation, Equity Consideration, Measurement Input | 3 | |
Lennar Other | Level 3 | Discount rate | ||
Segment Reporting Information [Line Items] | ||
Discontinued Operation, Equity Consideration, Measurement Input | 0.15 | |
Lennar Other | Disposal Group, Held-for-sale, Not Discontinued Operations | Sunnova Energy International Inc. | ||
Segment Reporting Information [Line Items] | ||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | $ 153,000 | |
Disposal Group, Including Discontinued Operation, Consideration, Equity Interest Received at Closing, Number of Shares | shares | 3.1 |
Operating and Reporting Segme_9
Operating and Reporting Segments (Loans Held-for-Sale) (Details) - Financial Services $ in Thousands | 12 Months Ended | |
Nov. 30, 2021USD ($)transaction | Nov. 30, 2020USD ($)transaction | |
Segment Reporting Information [Line Items] | ||
Origination of loans | $ 770,107 | $ 703,777 |
Loans sold | $ 931,023 | $ 705,089 |
Number of securitizations | transaction | 6 | 5 |
Operating and Reporting Segm_10
Operating and Reporting Segments (Commercial Mortgage-Backed Securities) (Details) - Financial Services - USD ($) $ in Thousands | Nov. 30, 2021 | Nov. 30, 2020 |
Carrying Amount | ||
Segment Reporting Information [Line Items] | ||
Carrying value | $ 157,808 | $ 164,230 |
Financing Agreement to Purchase Commercial Mortgage Backed Securities | Secured Debt | ||
Segment Reporting Information [Line Items] | ||
Notes and other debts payable, net | $ 147,474 | $ 153,505 |
Incurred interest rate | 3.40% | 3.40% |
Operating and Reporting Segm_11
Operating and Reporting Segments (Fair Value Inputs for Commercial Mortgage-Backed Securities) (Details) - Commercial Mortgage-Backed Securities - Financial Services | 12 Months Ended |
Nov. 30, 2021 | |
Minimum | |
Segment Reporting Information [Line Items] | |
Discount rate | 6.00% |
Coupon rate | 2.00% |
Maximum | |
Segment Reporting Information [Line Items] | |
Discount rate | 84.00% |
Coupon rate | 5.30% |
Operating And Reporting Segm_12
Operating And Reporting Segments (Financial Services Warehouse Facilities Outstanding) (Details) - Financial Services - Warehouse Repurchase Facility - USD ($) $ in Thousands | Nov. 30, 2021 | Nov. 30, 2020 |
Residential Warehouse Repurchase Facility | ||
Short-term Debt [Line Items] | ||
Borrowings under facilities | $ 1,482,258 | $ 1,185,797 |
Collateral under the residential facilities | 1,539,641 | 1,231,619 |
Commercial Warehouse Repurchase Facility | ||
Short-term Debt [Line Items] | ||
Borrowings under facilities | $ 96,294 | $ 124,617 |
Operating and Reporting Segm_13
Operating and Reporting Segments - Unrealized Gain (Loss) on Investments (Details) - Lennar Other - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | |
Segment Reporting Information [Line Items] | |||
Changes in fair value included in revenue | $ 680,576 | $ 0 | $ 0 |
Other realized gain | 11,705 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations | Solar Business | |||
Segment Reporting Information [Line Items] | |||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | 158,069 | ||
Opendoor | |||
Segment Reporting Information [Line Items] | |||
Changes in fair value included in revenue | 239,312 | ||
Hippo | |||
Segment Reporting Information [Line Items] | |||
Changes in fair value included in revenue | 207,634 | ||
SmartRent | |||
Segment Reporting Information [Line Items] | |||
Changes in fair value included in revenue | 79,483 | ||
Sunnova Energy International Inc. | |||
Segment Reporting Information [Line Items] | |||
Changes in fair value included in revenue | (8,883) | ||
Blend Labs | |||
Segment Reporting Information [Line Items] | |||
Changes in fair value included in revenue | $ (6,744) |
Investments In Unconsolidated_2
Investments In Unconsolidated Entities (Homebuilding Unconsolidated Entities) (Details) $ in Thousands | Nov. 30, 2021USD ($)investment | Nov. 30, 2020USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated entities | $ 1,972,383 | $ 2,064,921 | |
Underlying equity in unconsolidated entities' net assets | 1,301,719 | 1,269,701 | |
Homebuilding | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated entities | [1] | 972,084 | 953,177 |
Homebuilding | FivePoint Unconsolidated Entity | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated entities | $ 381,600 | $ 392,100 | |
Strategic joint ventures contributed | investment | 3 | ||
Ownership percentage | 40.00% | ||
[1] | Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its consolidated balance sheets the assets of consolidated variable interest entities ("VIEs") that are owned by the consolidated VIEs and liabilities of consolidated VIEs as to which there is no recourse against the Company. As of November 30, 2021, total assets include $1.1 billion related to consolidated VIEs of which $60.9 million is included in Homebuilding cash and cash equivalents, $4.4 million in Homebuilding receivables, net, $14.3 million in Homebuilding finished homes and construction in progress, $697.1 million in Homebuilding land and land under development, $239.2 million in Homebuilding consolidated inventory not owned, $1.1 million in Homebuilding investments in unconsolidated entities, $17.4 million in Homebuilding other assets and $80.6 million in Multifamily assets. As of November 30, 2020, total assets include $1.1 billion related to consolidated VIEs of which $32.1 million is included in Homebuilding cash and cash equivalents, $0.1 million in Homebuilding receivables, net, $14.2 million in Homebuilding finished homes and construction in progress, $486.8 million in Homebuilding land and land under development, $426.3 million in Homebuilding consolidated inventory not owned, $1.6 million in Homebuilding investments in unconsolidated entities, $120.6 million in Homebuilding other assets and $39.9 million in Multifamily assets. |
Investments In Unconsolidated_3
Investments In Unconsolidated Entities (Homebuilding Unconsolidated Entities Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Total revenues | $ 27,130,676 | $ 22,488,854 | $ 22,259,561 |
Land sales revenues | Unconsolidated Entities | Homebuilding | |||
Schedule of Equity Method Investments [Line Items] | |||
Total revenues | 57,944 | 99,935 | 82,966 |
Management fees and reimbursement of expenses, net of deferrals | Unconsolidated Entities | Homebuilding | |||
Schedule of Equity Method Investments [Line Items] | |||
Total revenues | $ 16,464 | $ 2,363 | $ 2,716 |
Investments In Unconsolidated_4
Investments In Unconsolidated Entities (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Nov. 30, 2021USD ($)property | Dec. 01, 2021USD ($) | Nov. 30, 2020USD ($) | |
Upward America Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment , Total Equity Commitments | $ 125 | ||
Number of Homes Delivered | property | 1,457 | ||
Homebuilding | |||
Schedule of Equity Method Investments [Line Items] | |||
Debt | $ 1,200 | $ 1,100 | |
Maximum recourse exposure | 5.3 | 4.9 | |
Unconsolidated entities non-recourse debt with completion guarantees | 241 | 183.3 | |
Multifamily | |||
Schedule of Equity Method Investments [Line Items] | |||
Unconsolidated entities non-recourse debt with completion guarantees | 855.2 | $ 722.9 | |
Upward America Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment , Total Equity Commitments | $ 1,250 | ||
Upward America Venture | Subsequent Event | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment , Total Equity Commitments | $ 1,600 |
Investments In Unconsolidated_5
Investments In Unconsolidated Entities (Multifamily Services Provided to Unconsolidated Entities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Total revenues | $ 27,130,676 | $ 22,488,854 | $ 22,259,561 |
Management fees and reimbursement of expenses, net of deferrals | Unconsolidated Entities | Multifamily | |||
Schedule of Equity Method Investments [Line Items] | |||
Total revenues | 56,573 | 56,253 | 53,597 |
General Contractor | Unconsolidated Entities | Multifamily | |||
Schedule of Equity Method Investments [Line Items] | |||
Total revenues | 549,400 | 400,808 | 355,388 |
Costs | $ 533,398 | $ 383,649 | $ 340,081 |
Investments In Unconsolidated_6
Investments In Unconsolidated Entities (Multifamily Venture Funds) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated entities | $ 1,972,383 | $ 2,064,921 | |
Distributions to Lennar during the year ended November 30, 2021 | 45,984 | 62,073 | $ 12,753 |
Multifamily | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated entities | 654,029 | $ 724,647 | |
Multifamily | LMV I | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated entities | 254,732 | ||
Equity commitments | 2,204,016 | ||
Equity commitments called | 2,149,357 | ||
Lennar's equity commitments | 504,016 | ||
Lennar's equity commitments called | 499,031 | ||
Lennar's remaining commitments | 4,985 | ||
Distributions to Lennar during the year ended November 30, 2021 | 67,197 | ||
Multifamily | LMV II | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated entities | 320,565 | ||
Equity commitments | 1,257,700 | ||
Equity commitments called | 1,201,475 | ||
Lennar's equity commitments | 381,000 | ||
Lennar's equity commitments called | 362,913 | ||
Lennar's remaining commitments | 18,087 | ||
Distributions to Lennar during the year ended November 30, 2021 | $ 9,672 |
Investments In Unconsolidated_7
Investments In Unconsolidated Entities (Summarized Financial Information of Unconsolidated Entities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | ||||
Assets: | ||||||
Total assets | [1] | $ 33,207,778 | $ 29,935,177 | |||
LIABILITIES AND EQUITY | ||||||
Equity | 20,996,282 | [2] | 18,099,401 | [2] | $ 16,033,830 | |
Total liabilities and equity | [2] | 33,207,778 | 29,935,177 | |||
Investments in unconsolidated entities | 1,972,383 | 2,064,921 | ||||
Statement of Operations Years Ended: | ||||||
Total revenues | 27,130,676 | 22,488,854 | 22,259,561 | |||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | 4,456,549 | 2,467,553 | 1,842,119 | |||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||||
Assets: | ||||||
Cash and cash equivalents | 917,680 | 814,222 | ||||
Loans receivable | 65,971 | 95,281 | ||||
Real estate owned | 279,200 | 295,391 | ||||
Investment securities | 2,461,788 | 2,093,766 | ||||
Investments in partnerships | 346,042 | 260,721 | ||||
Inventories | 4,666,454 | 4,527,371 | ||||
Operating properties and equipment | 6,451,302 | 5,564,669 | ||||
Other assets | 1,376,201 | 2,077,942 | ||||
Total assets | 16,564,638 | 15,729,363 | ||||
LIABILITIES AND EQUITY | ||||||
Accounts payable and other liabilities | 1,324,885 | 1,117,447 | ||||
Debt | 5,023,715 | 3,897,519 | ||||
Equity | 10,216,038 | 10,714,397 | ||||
Total liabilities and equity | 16,564,638 | 15,729,363 | ||||
Statement of Operations Years Ended: | ||||||
Total revenues | 1,383,266 | 1,362,686 | 782,712 | |||
Costs and expenses | 1,448,775 | 1,221,873 | 774,550 | |||
Other income | 187,625 | (244,680) | 347,018 | |||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | 122,116 | (103,867) | 355,180 | |||
Equity in earnings (loss) from unconsolidated entities | 48,993 | (13,939) | $ 13,393 | |||
Homebuilding | ||||||
Assets: | ||||||
Total assets | [1] | 27,467,819 | 25,529,425 | |||
LIABILITIES AND EQUITY | ||||||
Investments in unconsolidated entities | [1] | 972,084 | 953,177 | |||
Debt issuance costs | 11,900 | 11,800 | ||||
Homebuilding | Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||||
Assets: | ||||||
Cash and cash equivalents | 460,901 | 546,013 | ||||
Loans receivable | 0 | 0 | ||||
Real estate owned | 0 | 0 | ||||
Investment securities | 0 | 0 | ||||
Investments in partnerships | 0 | 0 | ||||
Inventories | 4,666,454 | 4,527,371 | ||||
Operating properties and equipment | 44,802 | 148,020 | ||||
Other assets | 1,044,771 | 862,875 | ||||
Total assets | 6,216,928 | 6,084,279 | ||||
LIABILITIES AND EQUITY | ||||||
Accounts payable and other liabilities | 904,078 | 866,812 | ||||
Debt | 1,216,721 | 1,085,639 | ||||
Equity | 4,096,129 | 4,131,828 | ||||
Total liabilities and equity | 6,216,928 | 6,084,279 | ||||
Financial Services | ||||||
Assets: | ||||||
Total assets | [1] | 2,964,367 | 2,708,118 | |||
Multifamily | ||||||
Assets: | ||||||
Total assets | [1] | 1,311,747 | 1,175,908 | |||
LIABILITIES AND EQUITY | ||||||
Investments in unconsolidated entities | 654,029 | 724,647 | ||||
Debt issuance costs | 23,400 | 31,100 | ||||
Multifamily | Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||||
Assets: | ||||||
Cash and cash equivalents | 25,972 | 94,801 | ||||
Loans receivable | 0 | 0 | ||||
Real estate owned | 0 | 0 | ||||
Investment securities | 0 | 0 | ||||
Investments in partnerships | 0 | 0 | ||||
Inventories | 0 | 0 | ||||
Operating properties and equipment | 6,406,500 | 5,392,681 | ||||
Other assets | 111,750 | 115,968 | ||||
Total assets | 6,544,222 | 5,603,450 | ||||
LIABILITIES AND EQUITY | ||||||
Accounts payable and other liabilities | 240,928 | 219,522 | ||||
Debt | 3,407,362 | 2,519,567 | ||||
Equity | 2,895,932 | 2,864,361 | ||||
Total liabilities and equity | 6,544,222 | 5,603,450 | ||||
Lennar Other | ||||||
Assets: | ||||||
Total assets | [1] | 1,463,845 | 521,726 | |||
LIABILITIES AND EQUITY | ||||||
Investments in unconsolidated entities | 346,270 | 387,097 | ||||
Lennar Other | Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||||
Assets: | ||||||
Cash and cash equivalents | 430,807 | 284,517 | ||||
Loans receivable | 65,971 | 95,281 | ||||
Real estate owned | 279,200 | 295,391 | ||||
Investment securities | 2,461,788 | 2,169,480 | ||||
Investments in partnerships | 346,042 | 260,721 | ||||
Inventories | 0 | 0 | ||||
Operating properties and equipment | 0 | 23,968 | ||||
Other assets | 219,680 | 1,263,881 | ||||
Total assets | 3,803,488 | 4,393,239 | ||||
LIABILITIES AND EQUITY | ||||||
Accounts payable and other liabilities | 179,879 | 190,384 | ||||
Debt | 399,632 | 292,313 | ||||
Equity | 3,223,977 | 3,910,542 | ||||
Total liabilities and equity | $ 3,803,488 | $ 4,393,239 | ||||
[1] | Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its consolidated balance sheets the assets of consolidated variable interest entities ("VIEs") that are owned by the consolidated VIEs and liabilities of consolidated VIEs as to which there is no recourse against the Company. As of November 30, 2021, total assets include $1.1 billion related to consolidated VIEs of which $60.9 million is included in Homebuilding cash and cash equivalents, $4.4 million in Homebuilding receivables, net, $14.3 million in Homebuilding finished homes and construction in progress, $697.1 million in Homebuilding land and land under development, $239.2 million in Homebuilding consolidated inventory not owned, $1.1 million in Homebuilding investments in unconsolidated entities, $17.4 million in Homebuilding other assets and $80.6 million in Multifamily assets. As of November 30, 2020, total assets include $1.1 billion related to consolidated VIEs of which $32.1 million is included in Homebuilding cash and cash equivalents, $0.1 million in Homebuilding receivables, net, $14.2 million in Homebuilding finished homes and construction in progress, $486.8 million in Homebuilding land and land under development, $426.3 million in Homebuilding consolidated inventory not owned, $1.6 million in Homebuilding investments in unconsolidated entities, $120.6 million in Homebuilding other assets and $39.9 million in Multifamily assets. | |||||
[2] | As of November 30, 2021, total liabilities include $258.5 million related to consolidated VIEs as to which there was no recourse against the Company, of which $26.6 million is included in Homebuilding accounts payable, $196.6 million in Homebuilding liabilities related to consolidated inventory not owned, $20.1 million in Homebuilding senior notes and other debts payable, $12.3 million in Homebuilding other liabilities and $2.8 million in Multifamily liabilities.As of November 30, 2020, total liabilities include $528.5 million related to consolidated VIEs as to which there was no recourse against the Company, of which $28.4 million is included in Homebuilding accounts payable, $351.4 million in Homebuilding liabilities related to consolidated inventory not owned, $129.1 million in Homebuilding senior notes and other debts payable, $9.9 million in Homebuilding other liabilities and $9.8 million in Multifamily liabilities. |
Lennar Homebuilding Senior No_3
Lennar Homebuilding Senior Notes And Other Debts Payable (Schedule Of Senior Notes And Other Debts Payable) (Details) - Homebuilding - USD ($) $ in Thousands | Nov. 30, 2021 | Oct. 31, 2021 | Jun. 30, 2021 | Nov. 30, 2020 | |
Debt Instrument [Line Items] | |||||
Senior notes and other debts payable, net | [1] | $ 4,652,338 | $ 5,955,758 | ||
Interest rate | 8.00% | ||||
Senior Notes | 6.25% senior notes due December 2021 | |||||
Debt Instrument [Line Items] | |||||
Senior notes and other debts payable, net | $ 0 | $ 300,000 | 305,221 | ||
Interest rate | 6.25% | ||||
Senior Notes | 4.125% senior notes due 2022 | |||||
Debt Instrument [Line Items] | |||||
Senior notes and other debts payable, net | $ 0 | $ 600,000 | 598,876 | ||
Interest rate | 4.125% | ||||
Senior Notes | 5.375% senior notes due 2022 | |||||
Debt Instrument [Line Items] | |||||
Senior notes and other debts payable, net | $ 0 | 255,342 | |||
Interest rate | 5.375% | ||||
Senior Notes | 4.750% senior notes due 2022 | |||||
Debt Instrument [Line Items] | |||||
Senior notes and other debts payable, net | $ 573,840 | 572,724 | |||
Interest rate | 4.75% | ||||
Senior Notes | 4.875% senior notes due December 2023 | |||||
Debt Instrument [Line Items] | |||||
Senior notes and other debts payable, net | $ 398,345 | 397,347 | |||
Interest rate | 4.875% | ||||
Senior Notes | 4.500% senior notes due 2024 | |||||
Debt Instrument [Line Items] | |||||
Senior notes and other debts payable, net | $ 648,253 | 647,528 | |||
Interest rate | 4.50% | ||||
Senior Notes | 5.875% senior notes due 2024 | |||||
Debt Instrument [Line Items] | |||||
Senior notes and other debts payable, net | $ 438,810 | 443,484 | |||
Interest rate | 5.875% | ||||
Senior Notes | 4.750% senior notes due 2025 | |||||
Debt Instrument [Line Items] | |||||
Senior notes and other debts payable, net | $ 498,446 | 498,002 | |||
Interest rate | 4.75% | ||||
Senior Notes | 5.25% senior notes due 2026 | |||||
Debt Instrument [Line Items] | |||||
Senior notes and other debts payable, net | $ 405,497 | 406,709 | |||
Interest rate | 5.25% | ||||
Senior Notes | 5.00% senior notes due 2027 | |||||
Debt Instrument [Line Items] | |||||
Senior notes and other debts payable, net | $ 352,124 | 352,508 | |||
Interest rate | 5.00% | ||||
Senior Notes | 4.75% senior notes due 2027 | |||||
Debt Instrument [Line Items] | |||||
Senior notes and other debts payable, net | $ 895,510 | 894,760 | |||
Interest rate | 4.75% | ||||
Mortgage notes on land and other debt | |||||
Debt Instrument [Line Items] | |||||
Senior notes and other debts payable, net | $ 441,513 | $ 583,257 | |||
[1] | As of November 30, 2021, total liabilities include $258.5 million related to consolidated VIEs as to which there was no recourse against the Company, of which $26.6 million is included in Homebuilding accounts payable, $196.6 million in Homebuilding liabilities related to consolidated inventory not owned, $20.1 million in Homebuilding senior notes and other debts payable, $12.3 million in Homebuilding other liabilities and $2.8 million in Multifamily liabilities.As of November 30, 2020, total liabilities include $528.5 million related to consolidated VIEs as to which there was no recourse against the Company, of which $28.4 million is included in Homebuilding accounts payable, $351.4 million in Homebuilding liabilities related to consolidated inventory not owned, $129.1 million in Homebuilding senior notes and other debts payable, $9.9 million in Homebuilding other liabilities and $9.8 million in Multifamily liabilities. |
Lennar Homebuilding Senior No_4
Lennar Homebuilding Senior Notes And Other Debts Payable (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||
Nov. 30, 2021 | Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | Oct. 31, 2021 | Jun. 30, 2021 | Sep. 30, 2019 | ||
Debt Instrument [Line Items] | ||||||||
Mortgages notes on land and other debt retired | $ 195,212,000 | $ 604,995,000 | $ 189,479,000 | |||||
Loss on Extinguishment of Debt | (2,204,000) | 7,997,000 | $ 0 | |||||
Homebuilding | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes and other debts payable, net | [1] | $ 4,652,338,000 | 4,652,338,000 | 5,955,758,000 | ||||
Minimum required guarantee of debt by subsidiaries to be a guarantor | $ 75,000,000 | |||||||
Interest rate | 8.00% | 8.00% | ||||||
Weighted average interest rate | 4.00% | 4.00% | ||||||
Homebuilding | Mortgage notes on land and other debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes and other debts payable, net | $ 441,513,000 | $ 441,513,000 | 583,257,000 | |||||
Mortgages notes on land and other debt retired | 195,200,000 | 555,600,000 | ||||||
Homebuilding | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issuance costs | 11,000,000 | 11,000,000 | 15,900,000 | |||||
Homebuilding | Senior Notes | 6.25% senior notes due December 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes and other debts payable, net | $ 0 | $ 0 | 305,221,000 | $ 300,000,000 | ||||
Interest rate | 6.25% | 6.25% | ||||||
Homebuilding | Senior Notes | 4.125% senior notes due 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes and other debts payable, net | $ 0 | $ 0 | 598,876,000 | $ 600,000,000 | ||||
Interest rate | 4.125% | 4.125% | ||||||
Homebuilding | Senior Notes | 5.375% senior notes due 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior notes and other debts payable, net | $ 0 | $ 0 | 255,342,000 | |||||
Interest rate | 5.375% | 5.375% | ||||||
Debt Instrument, Repurchased Face Amount | $ 250,000,000 | $ 250,000,000 | ||||||
Loss on Extinguishment of Debt | 7,400,000 | |||||||
Homebuilding | Unsecured Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowings | $ 2,500,000,000 | |||||||
Senior notes and other debts payable, net | 0 | 0 | $ 0 | |||||
Accordion feature | 300,000,000 | 300,000,000 | ||||||
Homebuilding | Unsecured Revolving Credit Facility | Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowings after accordion feature | 2,800,000,000 | 2,800,000,000 | ||||||
Homebuilding | Letters of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowings | $ 500,000,000 | $ 500,000,000 | ||||||
[1] | As of November 30, 2021, total liabilities include $258.5 million related to consolidated VIEs as to which there was no recourse against the Company, of which $26.6 million is included in Homebuilding accounts payable, $196.6 million in Homebuilding liabilities related to consolidated inventory not owned, $20.1 million in Homebuilding senior notes and other debts payable, $12.3 million in Homebuilding other liabilities and $2.8 million in Multifamily liabilities.As of November 30, 2020, total liabilities include $528.5 million related to consolidated VIEs as to which there was no recourse against the Company, of which $28.4 million is included in Homebuilding accounts payable, $351.4 million in Homebuilding liabilities related to consolidated inventory not owned, $129.1 million in Homebuilding senior notes and other debts payable, $9.9 million in Homebuilding other liabilities and $9.8 million in Multifamily liabilities. |
Lennar Homebuilding Senior No_5
Lennar Homebuilding Senior Notes And Other Debts Payable (Schedule of Letter of Credit Facilities) (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Nov. 30, 2020 |
Line of Credit Facility [Line Items] | ||
Letters of credit outstanding | $ 1,400,000 | |
Performance letters of credit | ||
Line of Credit Facility [Line Items] | ||
Letters of credit outstanding | 924,584 | $ 752,096 |
Financial Letters Of Credit | ||
Line of Credit Facility [Line Items] | ||
Letters of credit outstanding | 425,843 | 283,193 |
Surety bonds | ||
Line of Credit Facility [Line Items] | ||
Letters of credit outstanding | 3,553,047 | 3,087,711 |
Anticipated future costs primarily for site improvements related to performance surety bonds | ||
Line of Credit Facility [Line Items] | ||
Letters of credit outstanding | $ 1,690,861 | $ 1,584,642 |
Lennar Homebuilding Senior No_6
Lennar Homebuilding Senior Notes And Other Debts Payable (Schedule of Senior and Convertible Senior Notes) (Details) - Homebuilding - USD ($) | 1 Months Ended | 7 Months Ended | |||||
Nov. 30, 2017 | Apr. 30, 2017 | Nov. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2013 | Nov. 30, 2021 | Feb. 12, 2018 | |
Debt Instrument [Line Items] | |||||||
Interest rate | 8.00% | ||||||
Senior Notes | 6.25% senior notes due December 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 6.25% | ||||||
Senior Notes | 4.125% senior notes due 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 4.125% | ||||||
Senior Notes | 5.375% senior notes due 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 5.375% | ||||||
Senior Notes | 4.750% senior notes due 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 575,000,000 | ||||||
Net Proceeds | 567,585,000 | ||||||
Interest rate | 4.75% | ||||||
Senior Notes | 4.875% senior notes due December 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 400,000,000 | ||||||
Net Proceeds | $ 393,622,000 | ||||||
Price | 99.169% | ||||||
Interest rate | 4.875% | ||||||
Senior Notes | 4.500% senior notes due 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 650,000,000 | ||||||
Net Proceeds | $ 644,838,000 | ||||||
Price | 100.00% | ||||||
Interest rate | 4.50% | ||||||
Senior Notes | 5.875% senior notes due 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 425,000,000 | ||||||
Interest rate | 5.875% | ||||||
Senior Notes | 4.750% senior notes due 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 500,000,000 | ||||||
Net Proceeds | $ 495,528,000 | ||||||
Price | 100.00% | ||||||
Interest rate | 4.75% | ||||||
Senior Notes | 5.25% senior notes due 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | 400,000,000 | ||||||
Interest rate | 5.25% | ||||||
Senior Notes | 5.00% senior notes due 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 350,000,000 | ||||||
Interest rate | 5.00% | ||||||
Senior Notes | 4.75% senior notes due 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 900,000,000 | ||||||
Net Proceeds | $ 894,650,000 | ||||||
Price | 100.00% | ||||||
Interest rate | 4.75% | ||||||
Senior Notes | 4.750% Senior Notes Due 2022, Issued at 100% | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 350,000,000 | ||||||
Price | 100.00% | ||||||
Senior Notes | 4.750% Senior Notes Due 2022, Issued at 98.073% | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 175,000,000 | ||||||
Price | 98.073% | ||||||
Senior Notes | 4.750% Senior Notes Due 2022, Issued at 98.250% | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 50,000,000 | ||||||
Price | 98.25% |
Lennar Homebuilding Senior No_7
Lennar Homebuilding Senior Notes And Other Debts Payable (Schedule Of Maturities Of Senior Notes And Other Debts Payable) (Details) - Homebuilding $ in Thousands | Nov. 30, 2021USD ($) |
Segment Reporting Information [Line Items] | |
2022 | $ 718,279 |
2023 | 104,387 |
2024 | 1,529,977 |
2025 | 591,432 |
2026 | 402,794 |
Thereafter | $ 1,294,642 |
Income Taxes (Component Of Inco
Income Taxes (Component Of Income Taxes Benefit (Provision) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | |
Current: | |||
Federal | $ 924,474 | $ 428,907 | $ 298,701 |
State | 245,941 | 135,246 | 53,400 |
Current income tax benefit (expense) | 1,170,415 | 564,153 | 352,101 |
Deferred: | |||
Federal | 149,349 | 59,065 | 165,080 |
State | 42,745 | 33,017 | 74,992 |
Deferred income tax benefit (expense) | 192,094 | 92,082 | 240,072 |
Income tax benefit (expense) | $ 1,362,509 | $ 656,235 | $ 592,173 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Statutory Rate And Effective Tax Rate) (Details) | 12 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
Statutory rate | 21.00% | 21.00% | 21.00% |
State income taxes, net of federal income tax benefit | 4.03% | 4.00% | 4.17% |
Tax credits | (1.73%) | (4.46%) | (1.49%) |
Nondeductible compensation | 0.49% | 0.57% | 0.45% |
Tax reserves and interest expense, net | 0.03% | 0.00% | (0.03%) |
Deferred tax asset valuation allowance, net | (0.01%) | 0.00% | (0.02%) |
Other | (0.29%) | (0.09%) | 0.18% |
Effective rate | 23.52% | 21.02% | 24.26% |
Income Taxes (Deferred Income T
Income Taxes (Deferred Income Taxes Assets And Liabilities, Carrying Amount) (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Nov. 30, 2020 |
Deferred tax assets: | ||
Inventory valuation adjustments | $ 94,624 | $ 136,868 |
Reserves and accruals | 187,466 | 161,984 |
Net operating loss carryforwards | 74,902 | 88,021 |
Capitalized expenses | 174,405 | 130,910 |
Investments in unconsolidated entities | 48,913 | 67,405 |
Employee stock incentive plan | 37,813 | 25,060 |
Other assets | 49,828 | 51,655 |
Total deferred tax assets | 667,951 | 661,903 |
Valuation allowance | (2,693) | (4,411) |
Total deferred tax assets after valuation allowance | 665,258 | 657,492 |
Deferred tax liabilities: | ||
Capitalized expenses | 187,332 | 181,729 |
Deferred income | 272,827 | 240,903 |
Unrealized gains on investments in equity securities | 164,534 | 0 |
Other liabilities | 44,810 | 47,478 |
Total deferred tax liabilities | 669,503 | 470,110 |
Deferred Tax Liabilities, Net | $ (4,245) | |
Net deferred tax assets (liabilities) | $ 187,382 |
Income Taxes (Net Deferred Tax
Income Taxes (Net Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Nov. 30, 2020 |
Segment Reporting Information [Line Items] | ||
Net deferred tax assets | $ 187,382 | |
Net deferred tax liabilities | $ (4,245) | |
Homebuilding | ||
Segment Reporting Information [Line Items] | ||
Net deferred tax assets | 84,198 | 119,467 |
Financial Services | ||
Segment Reporting Information [Line Items] | ||
Net deferred tax assets | 1,024 | |
Net deferred tax liabilities | (1,431) | |
Multifamily | ||
Segment Reporting Information [Line Items] | ||
Net deferred tax assets | 64,247 | 38,155 |
Lennar Other | ||
Segment Reporting Information [Line Items] | ||
Net deferred tax assets | $ 28,736 | |
Net deferred tax liabilities | $ (151,259) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Operating Loss Carryforwards [Line Items] | ||
Deferred tax assets, valuation allowance | $ 2,693 | $ 4,411 |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 32,968 | 36,264 |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 41,935 | $ 51,757 |
State | Minimum | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforward, term | 10 years | |
State | Maximum | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforward, term | 20 years |
Income Taxes (Summary Of Change
Income Taxes (Summary Of Changes In Gross Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | |
Gross Unrecognized Tax Benefits [Roll Forward] | |||
Gross unrecognized tax benefits, beginning of year | $ 12,285 | $ 12,856 | $ 14,667 |
Lapse of statute of limitations | 0 | (349) | (1,811) |
Decreases due to settlements with tax authorities | 0 | (222) | 0 |
Gross unrecognized tax benefits, end of year | 12,285 | $ 12,285 | $ 12,856 |
Unrecognized tax benefits that would impact effective tax rate if recognized | $ 9,700 |
Income Taxes (Accrued Interests
Income Taxes (Accrued Interests and Penalties) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Accrued Interests and Penalties [Roll Forward] | ||
Accrued interest and penalties, beginning of the year | $ 57,764 | $ 55,333 |
Accrual of interest and penalties (primarily related to state audits) | 2,173 | 2,802 |
Reduction of interest and penalties | 0 | (371) |
Accrued interest and penalties, end of the year | $ 59,937 | $ 57,764 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | |
Numerator: | |||
Net earnings attributable to Lennar | $ 4,430,111 | $ 2,465,036 | $ 1,849,052 |
Less: distributed earnings allocated to nonvested shares | 2,690 | 1,658 | 420 |
Less: undistributed earnings allocated to nonvested shares | 50,229 | 26,731 | 15,722 |
Numerator for basic earnings per share | 4,377,192 | 2,436,647 | 1,832,910 |
Less: net amount attributable to noncontrolling interests in Rialto's Carried Interest Incentive Plan | 2,907 | 8,971 | 4,204 |
Numerator for diluted earnings per share | $ 4,374,285 | $ 2,427,676 | $ 1,828,706 |
Denominator: | |||
Denominator for basic earnings per share - weighted average common shares outstanding (in shares) | 306,612 | 309,406 | 318,419 |
Effect of dilutive securities: | |||
Share-based payments (in shares) | 0 | 1 | 3 |
Denominator for diluted earnings per share - weighted average common shares outstanding (in shares) | 306,612 | 309,407 | 318,422 |
Basic earnings per share (in USD per share) | $ 14.28 | $ 7.88 | $ 5.76 |
Diluted earnings per share (in USD per share) | $ 14.27 | $ 7.85 | $ 5.74 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 12 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | |
Stock Option Awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Options to purchase outstanding and anti-dilutive shares (in shares) | 0 | 0 | 0 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Disclosure (Carrying Amounts And Estimated Fair Value Of Financial Instruments) (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Nov. 30, 2020 |
Homebuilding | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | $ 4,652,338 | $ 5,955,758 |
Financial Services | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans held-for-investment, net | 44,582 | 72,626 |
Investments held-to-maturity | 157,808 | 164,230 |
Notes and other debts payable | 1,726,026 | 1,463,919 |
Lennar Other | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | 0 | 1,906 |
Level 3 | Financial Services | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans held-for-investment, net | 44,594 | 70,808 |
Investments held-to-maturity | 184,495 | 196,047 |
Level 2 | Homebuilding | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | 5,046,721 | 6,581,798 |
Level 2 | Financial Services | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | 1,726,860 | 1,464,850 |
Level 2 | Lennar Other | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | $ 0 | $ 1,906 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Disclosure (Fair Value Measured On Recurring Basis) (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Nov. 30, 2020 |
Residential Portfolio Segment | ||
Financial Instruments [Line Items] | ||
Aggregate principal balance of loans held-for-sale | $ 1,586,764 | $ 1,232,548 |
Aggregate fair value of loans held-for-sale in excess of principal balance | 49,519 | 63,969 |
Commercial Portfolio Segment | ||
Financial Instruments [Line Items] | ||
Aggregate principal balance of loans held-for-sale | 0 | 194,362 |
Aggregate fair value of loans held-for-sale in excess of principal balance | 68 | (774) |
Lennar Other | ||
Financial Instruments [Line Items] | ||
Investments available-for-sale | 41,700 | 53,500 |
Fair Value, Measurements, Recurring | Financial Services | Level 2 | Residential Portfolio Segment | ||
Financial Instruments [Line Items] | ||
Loans held-for-sale | 1,636,283 | 1,296,517 |
Fair Value, Measurements, Recurring | Financial Services | Level 3 | ||
Financial Instruments [Line Items] | ||
Mortgage servicing rights | 2,492 | 2,113 |
Fair Value, Measurements, Recurring | Financial Services | Level 3 | Commercial Portfolio Segment | ||
Financial Instruments [Line Items] | ||
Loans held-for-sale | 68 | 193,588 |
Fair Value, Measurements, Recurring | Lennar Other | Level 1 | ||
Financial Instruments [Line Items] | ||
Investments in equity securities | 906,539 | 0 |
Fair Value, Measurements, Recurring | Lennar Other | Level 3 | ||
Financial Instruments [Line Items] | ||
Investments available-for-sale | $ 41,654 | $ 53,497 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Disclosure (Narrative) (Details) - Financial Services - Mortgage servicing rights - Level 3 | Nov. 30, 2021 |
Mortgage prepayment rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Mortgage servicing rights, key assumptions | 0.13 |
Discount rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Mortgage servicing rights, key assumptions | 0.13 |
Delinquency rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Mortgage servicing rights, key assumptions | 0.04 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Disclosure (Schedule Of Gains And Losses Of Financial Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Changes in fair value included in other comprehensive income | $ (536) | $ (851) | $ 1,040 |
Lennar Other | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Changes in fair value included in revenue | 680,576 | 0 | 0 |
Fair Value, Measurements, Recurring | Loans held-for-sale | Financial Services | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Changes in fair value included in revenue | (14,449) | 21,765 | 4,891 |
Fair Value, Measurements, Recurring | Mortgage loan commitments | Financial Services | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Changes in fair value included in revenue | (8,302) | 12,774 | (85) |
Fair Value, Measurements, Recurring | Forward contracts | Financial Services | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Changes in fair value included in revenue | 11,513 | (9,805) | 6,504 |
Fair Value, Measurements, Recurring | Equity Securities | Lennar Other | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Changes in fair value included in revenue | 510,802 | 0 | 0 |
Fair Value, Measurements, Recurring | Lennar Other investments available-for-sale | Financial Services | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Changes in fair value included in other comprehensive income | 0 | (46) | 1,040 |
Fair Value, Measurements, Recurring | Lennar Other investments available-for-sale | Lennar Other | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Changes in fair value included in other comprehensive income | $ (536) | $ (805) | $ 0 |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Disclosure (Reconciliation of Beginning and Ending Balance of the Company's Level 3 Recurring Fair Value Measurements (Details) - Financial Services $ in Thousands | 12 Months Ended | |
Nov. 30, 2021USD ($)transaction | Nov. 30, 2020USD ($)transaction | |
Fair Value Assets Measures on Recurring Basis, Unobservable Inputs [Roll Forward] | ||
Number of securitizations | transaction | 6 | 5 |
Mortgage servicing rights | ||
Fair Value Assets Measures on Recurring Basis, Unobservable Inputs [Roll Forward] | ||
Beginning of year | $ 2,113 | $ 24,679 |
Purchases/loan originations | 584 | 2,378 |
Sales/loan originations sold, including those not settled | 0 | 0 |
Disposals/settlements | (1,365) | (10,322) |
Changes in fair value | 1,160 | (14,622) |
Interest and principal paydowns | 0 | 0 |
End of year | 2,492 | 2,113 |
Loans held-for-sale | ||
Fair Value Assets Measures on Recurring Basis, Unobservable Inputs [Roll Forward] | ||
Beginning of year | 193,588 | 197,224 |
Purchases/loan originations | 774,905 | 703,777 |
Sales/loan originations sold, including those not settled | (931,023) | (705,089) |
Disposals/settlements | (35,837) | 0 |
Changes in fair value | (388) | (25) |
Interest and principal paydowns | (1,177) | (2,299) |
End of year | 68 | 193,588 |
Asset converted to loans-held-for sale | 7,300 | |
Loans Held For Sale, Excluding Securitizations | ||
Fair Value Assets Measures on Recurring Basis, Unobservable Inputs [Roll Forward] | ||
Disposals/settlements | $ (28,500) | |
Mortgage servicing rights, servicing portfolio | ||
Fair Value Assets Measures on Recurring Basis, Unobservable Inputs [Roll Forward] | ||
Disposals/settlements | $ (7,500) |
Financial Instruments and Fai_8
Financial Instruments and Fair Value Disclosure (Fair Value Assets Measured On Nonrecurring Basis) (Details) - Fair Value, Measurements, Nonrecurring - Homebuilding - Level 3 - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Finished homes and construction in progress, carrying value | $ 32,364 | $ 176,637 | $ 218,942 |
Finished homes and construction in progress, fair value | 16,342 | 148,684 | 205,201 |
Finished homes and construction in progress, total gains and losses | (16,022) | (27,953) | (13,741) |
Land and land under development, carrying value | 35,775 | 182,137 | 121,564 |
Land and land under development, fair value | 26,841 | 92,355 | 82,816 |
Land and land under development, total gains (losses) | (8,934) | (89,782) | (38,748) |
Other assets, carrying value | 12,764 | 0 | 60,363 |
Other assets, fair value | 12,024 | 0 | 56,727 |
Other assets, total gains (loss) | $ (740) | $ 0 | $ (3,636) |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2019 | May 31, 2021 | Nov. 30, 2021USD ($)entity | Nov. 30, 2020USD ($) | ||
Variable Interest Entity [Line Items] | |||||
Assets | [1] | $ 33,207,778 | $ 29,935,177 | ||
Liabilities | [2] | 12,211,496 | 11,835,776 | ||
Letters of credit outstanding | 1,400,000 | ||||
Variable Interest Entity, Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Assets | 1,100,000 | 1,100,000 | |||
Liabilities | 258,500 | 528,500 | |||
Variable Interest Entity, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Assets | 857,199 | 949,447 | |||
Variable Interest Entity, Not Primary Beneficiary Including Third Parties | |||||
Variable Interest Entity [Line Items] | |||||
Increase in consolidated inventory not owned | 324,500 | ||||
Non-refundable option deposits and pre-acquisition costs | 1,228,057 | 414,154 | |||
Variable Interest Entity, Entities Consolidated | |||||
Variable Interest Entity [Line Items] | |||||
Assets | 77,100 | ||||
Liabilities | 3,200 | ||||
Letters of Credit | Variable Interest Entity, Not Primary Beneficiary Including Third Parties | |||||
Variable Interest Entity [Line Items] | |||||
Letters of credit outstanding | 175,937 | 87,537 | |||
Homebuilding | |||||
Variable Interest Entity [Line Items] | |||||
Assets | [1] | 27,467,819 | 25,529,425 | ||
Liabilities | [2] | $ 9,870,242 | 9,925,651 | ||
Homebuilding | Variable Interest Entity, Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Number of entities consolidated during period | entity | 7 | ||||
Homebuilding | Variable Interest Entity, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Assets | $ 107,323 | 89,654 | |||
Multifamily | |||||
Variable Interest Entity [Line Items] | |||||
Assets | [1] | 1,311,747 | 1,175,908 | ||
Liabilities | [2] | 288,930 | 252,911 | ||
Multifamily | Variable Interest Entity, Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Assets | 80,600 | 39,900 | |||
Liabilities | 2,800 | 9,800 | |||
Multifamily | Variable Interest Entity, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Assets | 579,388 | 619,540 | |||
Financial Services | |||||
Variable Interest Entity [Line Items] | |||||
Assets | [1] | 2,964,367 | 2,708,118 | ||
Liabilities | [2] | 1,906,343 | 1,644,248 | ||
Financial Services | Variable Interest Entity, Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
VIE assets deconsolidated during period | 291,200 | ||||
VIE liabilities deconsolidated during period | 204,100 | ||||
Percentage of stock owned | 20.00% | ||||
Reduction in principal amount of debt owed to the company | 43.00% | ||||
Reduction in ownership percentage | 20.00% | ||||
Financial Services | Variable Interest Entity, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Assets | 157,808 | $ 164,230 | |||
Fair value of equity investment and note receivable | 123,400 | ||||
Fair value of equity investment | 70,800 | ||||
Gain on deconsolidation | $ 61,400 | ||||
[1] | Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its consolidated balance sheets the assets of consolidated variable interest entities ("VIEs") that are owned by the consolidated VIEs and liabilities of consolidated VIEs as to which there is no recourse against the Company. As of November 30, 2021, total assets include $1.1 billion related to consolidated VIEs of which $60.9 million is included in Homebuilding cash and cash equivalents, $4.4 million in Homebuilding receivables, net, $14.3 million in Homebuilding finished homes and construction in progress, $697.1 million in Homebuilding land and land under development, $239.2 million in Homebuilding consolidated inventory not owned, $1.1 million in Homebuilding investments in unconsolidated entities, $17.4 million in Homebuilding other assets and $80.6 million in Multifamily assets. As of November 30, 2020, total assets include $1.1 billion related to consolidated VIEs of which $32.1 million is included in Homebuilding cash and cash equivalents, $0.1 million in Homebuilding receivables, net, $14.2 million in Homebuilding finished homes and construction in progress, $486.8 million in Homebuilding land and land under development, $426.3 million in Homebuilding consolidated inventory not owned, $1.6 million in Homebuilding investments in unconsolidated entities, $120.6 million in Homebuilding other assets and $39.9 million in Multifamily assets. | ||||
[2] | As of November 30, 2021, total liabilities include $258.5 million related to consolidated VIEs as to which there was no recourse against the Company, of which $26.6 million is included in Homebuilding accounts payable, $196.6 million in Homebuilding liabilities related to consolidated inventory not owned, $20.1 million in Homebuilding senior notes and other debts payable, $12.3 million in Homebuilding other liabilities and $2.8 million in Multifamily liabilities.As of November 30, 2020, total liabilities include $528.5 million related to consolidated VIEs as to which there was no recourse against the Company, of which $28.4 million is included in Homebuilding accounts payable, $351.4 million in Homebuilding liabilities related to consolidated inventory not owned, $129.1 million in Homebuilding senior notes and other debts payable, $9.9 million in Homebuilding other liabilities and $9.8 million in Multifamily liabilities. |
Variable Interest Entities (Est
Variable Interest Entities (Estimated Maximum Exposure To Loss) (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Nov. 30, 2020 | |
Variable Interest Entity [Line Items] | |||
Assets | [1] | $ 33,207,778 | $ 29,935,177 |
Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Assets | 857,199 | 949,447 | |
Lennar's Maximum Exposure to Loss | 1,084,044 | 1,101,506 | |
Homebuilding | |||
Variable Interest Entity [Line Items] | |||
Assets | [1] | 27,467,819 | 25,529,425 |
Homebuilding | Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Assets | 107,323 | 89,654 | |
Lennar's Maximum Exposure to Loss | 301,619 | 89,828 | |
Multifamily | |||
Variable Interest Entity [Line Items] | |||
Assets | [1] | 1,311,747 | 1,175,908 |
Multifamily | Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Assets | 579,388 | 619,540 | |
Lennar's Maximum Exposure to Loss | 611,937 | 717,271 | |
Multifamily | Equity Commitments | Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Obligations related to VIEs | 23,100 | 88,100 | |
Financial Services | |||
Variable Interest Entity [Line Items] | |||
Assets | [1] | 2,964,367 | 2,708,118 |
Financial Services | Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Assets | 157,808 | 164,230 | |
Lennar's Maximum Exposure to Loss | 157,808 | 164,230 | |
Lennar Other | |||
Variable Interest Entity [Line Items] | |||
Assets | [1] | 1,463,845 | 521,726 |
Lennar Other | Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Assets | 12,680 | 76,023 | |
Lennar's Maximum Exposure to Loss | $ 12,680 | $ 130,177 | |
[1] | Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its consolidated balance sheets the assets of consolidated variable interest entities ("VIEs") that are owned by the consolidated VIEs and liabilities of consolidated VIEs as to which there is no recourse against the Company. As of November 30, 2021, total assets include $1.1 billion related to consolidated VIEs of which $60.9 million is included in Homebuilding cash and cash equivalents, $4.4 million in Homebuilding receivables, net, $14.3 million in Homebuilding finished homes and construction in progress, $697.1 million in Homebuilding land and land under development, $239.2 million in Homebuilding consolidated inventory not owned, $1.1 million in Homebuilding investments in unconsolidated entities, $17.4 million in Homebuilding other assets and $80.6 million in Multifamily assets. As of November 30, 2020, total assets include $1.1 billion related to consolidated VIEs of which $32.1 million is included in Homebuilding cash and cash equivalents, $0.1 million in Homebuilding receivables, net, $14.2 million in Homebuilding finished homes and construction in progress, $486.8 million in Homebuilding land and land under development, $426.3 million in Homebuilding consolidated inventory not owned, $1.6 million in Homebuilding investments in unconsolidated entities, $120.6 million in Homebuilding other assets and $39.9 million in Multifamily assets. |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | |
Other Commitments [Line Items] | |||
Non-refundable option deposits and pre-acquisition costs | $ 1,200,000 | ||
Rental Expense | 84,991 | $ 82,090 | $ 92,178 |
Letters of credit outstanding | 1,400,000 | ||
Costs to Complete Related to Site Improvements | |||
Other Commitments [Line Items] | |||
Costs to complete related to site improvements | $ 1,700,000 | ||
Costs to complete related to site improvements as a percent | 48.00% | ||
Surety bonds | |||
Other Commitments [Line Items] | |||
Outstanding surety bonds | $ 3,600,000 |
Commitment and Contingencies (A
Commitment and Contingencies (Additional Information about Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Right-of-use assets | $ 155,616 | ||
Operating lease liability | $ 163,513 | ||
Operating Lease, Weighted Average Remaining Lease Term | 8 years 2 months 12 days | ||
Lessee, Operating Lease, Discount Rate | 2.80% | ||
Rental Expense | $ 84,991 | $ 82,090 | $ 92,178 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets |
Commitments And Contingent Li_4
Commitments And Contingent Liabilities (Future Minimum Payments Under Noncancellable Leases) (Details) $ in Thousands | Nov. 30, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | $ 40,387 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 28,878 |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 23,231 |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 18,797 |
Lessee, Operating Lease, Liability, Payments, Due after Year Four | 72,852 |
Lessee, Operating Lease, Liability, Payments, Due | 184,145 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 20,632 |
Operating lease liability | 163,513 |
Variable lease costs | 29,200 |
Short-term lease costs | $ 1,900 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities |
Schedule II-Valuation And Qua_2
Schedule II-Valuation And Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | |
Allowances for credit losses and notes and other receivables | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | $ 2,394 | $ 3,379 | $ 2,793 |
Additions, Charged to costs and expenses | 79 | 661 | 1,404 |
Additions, Charged (credited) to other accounts | 59 | (568) | (344) |
Deductions | (1) | (1,078) | (474) |
Ending balance | 2,531 | 2,394 | 3,379 |
Allowance for loan losses and loans receivable | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | 4,012 | 4,122 | 6,154 |
Additions, Charged to costs and expenses | 0 | 795 | 485 |
Additions, Charged (credited) to other accounts | (31) | 17 | 0 |
Deductions | (1,890) | (922) | (2,517) |
Ending balance | 2,091 | 4,012 | 4,122 |
Allowance against net deferred tax assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | 4,411 | 4,341 | 7,219 |
Additions, Charged to costs and expenses | 0 | 70 | 0 |
Additions, Charged (credited) to other accounts | (1,556) | 0 | 0 |
Deductions | (162) | 0 | (2,878) |
Ending balance | $ 2,693 | $ 4,411 | $ 4,341 |