Document And Entity Information
Document And Entity Information | 3 Months Ended |
Feb. 29, 2024 shares | |
Class of Stock [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Feb. 29, 2024 |
Document Transition Report | false |
Entity File Number | 1-11749 |
Entity Registrant Name | LENNAR CORP /NEW/ |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 95-4337490 |
Entity Address, Address Line One | 5505 Waterford District Drive |
Entity Address, City or Town | Miami |
Entity Address, State or Province | FL |
Entity Address, Postal Zip Code | 33126 |
City Area Code | 305 |
Local Phone Number | 559-4000 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Current Fiscal Year End Date | --11-30 |
Entity Shell Company | false |
Entity Central Index Key | 0000920760 |
Document Fiscal Year Focus | 2024 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Common Class A | |
Class of Stock [Line Items] | |
Title of 12(b) Security | Class A Common Stock, par value $.10 |
Trading Symbol | LEN |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 245,036,430 |
Common Class B | |
Class of Stock [Line Items] | |
Title of 12(b) Security | Class B Common Stock, par value $.10 |
Trading Symbol | LEN.B |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 33,307,143 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 29, 2024 | Nov. 30, 2023 | |
Inventories: | |||
Total assets | [1] | $ 38,951,199 | $ 39,234,303 |
Stockholders' equity: | |||
Preferred stock | [2] | 0 | 0 |
Additional paid-in capital | [2] | 5,651,836 | 5,570,009 |
Retained earnings | [2] | 22,949,315 | 22,369,368 |
Treasury stock at cost | [2] | (1,988,200) | (1,393,100) |
Accumulated other comprehensive income | [2] | 5,241 | 4,879 |
Total stockholders’ equity | [2] | 26,647,835 | 26,580,664 |
Noncontrolling interests | [2] | 130,095 | 121,302 |
Total equity | [2] | 26,777,930 | 26,701,966 |
Total liabilities | [2] | 12,173,269 | 12,532,337 |
Total liabilities and equity | [2] | 38,951,199 | 39,234,303 |
Common Class A | |||
Stockholders' equity: | |||
Common stock | [2] | 25,983 | 25,848 |
Common Class B | |||
Stockholders' equity: | |||
Common stock | [2] | 3,660 | 3,660 |
Homebuilding | |||
ASSETS | |||
Cash and cash equivalents | [1] | 4,950,128 | 6,273,724 |
Restricted cash | [1] | 12,635 | 13,481 |
Receivables, net | [1] | 897,371 | 887,992 |
Inventories: | |||
Finished homes and construction in progress | [1] | 11,092,036 | 10,455,666 |
Land and land under development | [1] | 4,734,113 | 4,904,541 |
Inventory owned | 15,826,149 | 15,360,207 | |
Consolidated inventory not owned | [1] | 3,547,921 | 2,992,528 |
Inventory owned and consolidated inventory not owned | [1] | 19,374,070 | 18,352,735 |
Deposits and pre-acquisition costs on real estate | 2,408,877 | 2,002,154 | |
Investments in unconsolidated entities | [1] | 1,206,564 | 1,143,909 |
Goodwill | [1] | 3,442,359 | 3,442,359 |
Other assets | [1] | 1,473,563 | 1,512,038 |
Total assets | [1] | 33,765,567 | 33,628,392 |
LIABILITIES AND EQUITY | |||
Accounts payable | [2] | 1,565,464 | 1,631,401 |
Liabilities related to consolidated inventory not owned | [2] | 3,043,888 | 2,540,894 |
Senior notes and other debts payable, net | [2] | 2,830,332 | 2,816,482 |
Other liabilities | [2] | 2,689,263 | 2,739,217 |
Stockholders' equity: | |||
Total liabilities | [2] | 10,128,947 | 9,727,994 |
Lennar Financial Services | |||
Inventories: | |||
Total assets | [1] | 3,056,442 | 3,566,546 |
Stockholders' equity: | |||
Total liabilities | [2] | 1,721,333 | 2,447,039 |
Multifamily | |||
Inventories: | |||
Total assets | [1] | 1,379,279 | 1,381,513 |
Stockholders' equity: | |||
Total liabilities | [2] | 249,625 | 278,177 |
Lennar Other | |||
Inventories: | |||
Total assets | [1] | 749,911 | 657,852 |
Stockholders' equity: | |||
Total liabilities | [2] | 73,364 | 79,127 |
Operating Segments | |||
ASSETS | |||
Cash and cash equivalents | 5,213,765 | 6,474,497 | |
Restricted cash | 47,703 | 96,441 | |
Receivables, net | 1,284,692 | 1,696,205 | |
Inventories: | |||
Inventory owned and consolidated inventory not owned | 19,942,759 | 18,897,670 | |
Deposits and pre-acquisition costs on real estate | 2,440,662 | 2,034,217 | |
Investments in unconsolidated entities | 2,082,693 | 2,020,005 | |
Goodwill | 3,632,058 | 3,632,058 | |
Other assets | 1,791,040 | 1,765,066 | |
LIABILITIES AND EQUITY | |||
Senior notes and other debts payable, net | 4,394,622 | 4,984,028 | |
Operating Segments | Homebuilding | |||
ASSETS | |||
Cash and cash equivalents | 4,950,128 | 6,273,724 | |
Restricted cash | 12,635 | 13,481 | |
Receivables, net | 897,371 | 887,992 | |
Inventories: | |||
Inventory owned and consolidated inventory not owned | 19,374,070 | 18,352,735 | |
Deposits and pre-acquisition costs on real estate | 2,408,877 | 2,002,154 | |
Investments in unconsolidated entities | 1,206,564 | 1,143,909 | |
Goodwill | 3,442,359 | 3,442,359 | |
Other assets | 1,473,563 | 1,512,038 | |
Total assets | 33,765,567 | 33,628,392 | |
LIABILITIES AND EQUITY | |||
Senior notes and other debts payable, net | 2,830,332 | 2,816,482 | |
Stockholders' equity: | |||
Total liabilities | 10,128,947 | 9,727,994 | |
Operating Segments | Lennar Financial Services | |||
ASSETS | |||
Cash and cash equivalents | 233,846 | 159,491 | |
Restricted cash | 35,068 | 82,960 | |
Receivables, net | 304,716 | 716,071 | |
Inventories: | |||
Inventory owned and consolidated inventory not owned | 0 | 0 | |
Deposits and pre-acquisition costs on real estate | 0 | 0 | |
Investments in unconsolidated entities | 0 | 0 | |
Goodwill | 189,699 | 189,699 | |
Other assets | 109,847 | 135,377 | |
Total assets | 3,056,442 | 3,566,546 | |
LIABILITIES AND EQUITY | |||
Senior notes and other debts payable, net | 1,564,290 | 2,163,805 | |
Stockholders' equity: | |||
Total liabilities | 1,721,333 | 2,447,039 | |
Operating Segments | Multifamily | |||
ASSETS | |||
Cash and cash equivalents | 27,091 | 39,334 | |
Restricted cash | 0 | 0 | |
Receivables, net | 82,605 | 92,142 | |
Inventories: | |||
Inventory owned and consolidated inventory not owned | 568,689 | 544,935 | |
Deposits and pre-acquisition costs on real estate | 31,785 | 32,063 | |
Investments in unconsolidated entities | 586,438 | 599,852 | |
Goodwill | 0 | 0 | |
Other assets | 82,671 | 73,187 | |
Total assets | 1,379,279 | 1,381,513 | |
LIABILITIES AND EQUITY | |||
Senior notes and other debts payable, net | 0 | 3,741 | |
Stockholders' equity: | |||
Total liabilities | 249,625 | 278,177 | |
Operating Segments | Lennar Other | |||
ASSETS | |||
Cash and cash equivalents | 2,700 | 1,948 | |
Restricted cash | 0 | 0 | |
Receivables, net | 0 | 0 | |
Inventories: | |||
Inventory owned and consolidated inventory not owned | 0 | 0 | |
Deposits and pre-acquisition costs on real estate | 0 | 0 | |
Investments in unconsolidated entities | 289,691 | 276,244 | |
Goodwill | 0 | 0 | |
Other assets | 124,959 | 44,464 | |
Total assets | 749,911 | 657,852 | |
LIABILITIES AND EQUITY | |||
Senior notes and other debts payable, net | 0 | 0 | |
Stockholders' equity: | |||
Total liabilities | $ 73,364 | $ 79,127 | |
[1] Under certain provisions of Accounting Standards Codification (“ASC”) Topic 810, Consolidations (“ASC 810”), the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities (“VIEs”) and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations. As of February 29, 2024, total assets include $2.7 billion related to consolidated VIEs of which $40.8 million is included in Homebuilding cash and cash equivalents, $2.0 million in Homebuilding receivables, net, $9.8 million in Homebuilding finished homes and construction in progress, $633.4 million in Homebuilding land and land under development, $67.1 million in Homebuilding deposits and pre-acquisition costs on real estate, $1.9 billion in Homebuilding consolidated inventory not owned, $0.3 million in Homebuilding investments in unconsolidated entities, $26.7 million in Homebuilding other assets and $33.1 million in Multifamily assets. As of November 30, 2023, total assets include $1.9 billion related to consolidated VIEs of which $22.8 million is included in Homebuilding cash and cash equivalents, $1.8 million in Homebuilding receivables, net, $18.3 million in Homebuilding finished homes and construction in progress, $628.0 million in Homebuilding land and land under development, $55.0 million in Homebuilding deposits and pre-acquisition costs on real estate, $1.2 billion in Homebuilding consolidated inventory not owned, $0.3 million in Homebuilding investments in unconsolidated entities, $23.0 million in Homebuilding other assets and $32.6 million in Multifamily assets. As of February 29, 2024, total liabilities include $1.8 billion related to consolidated VIEs as to which there was no recourse against the Company, of which $17.7 million is included in Homebuilding accounts payable, $1.7 billion in Homebuilding liabilities related to consolidated inventory not owned, $6.0 million in Homebuilding senior notes and other debts payable, $88.5 million in Homebuilding other liabilities, and $0.9 million in Multifamily liabilities. As of November 30, 2023, total liabilities include $1.2 billion related to consolidated VIEs as to which there was no recourse against the Company, of which $53.7 million is included in Homebuilding accounts payable, $1.1 billion in Homebuilding liabilities related to consolidated inventory not owned, $38.1 million in Homebuilding other liabilities, and $4.1 million in Multifamily liabilities. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Feb. 29, 2024 | Nov. 30, 2023 | |
Total assets | [1] | $ 38,951,199 | $ 39,234,303 |
Total liabilities | [2] | $ 12,173,269 | $ 12,532,337 |
Common Class A | |||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 | |
Common stock, shares authorized | 400,000,000 | 400,000,000 | |
Common stock, shares issued | 259,834,181 | 258,475,012 | |
Treasury stock, shares | 14,797,751 | 11,207,889 | |
Common Class B | |||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 | |
Common stock, shares authorized | 90,000,000 | 90,000,000 | |
Common stock, shares issued | 36,601,215 | 36,601,215 | |
Treasury stock, shares | 3,294,072 | 2,920,200 | |
Homebuilding | |||
Total assets | [1] | $ 33,765,567 | $ 33,628,392 |
Cash and cash equivalents | [1] | 4,950,128 | 6,273,724 |
Restricted cash | [1] | 12,635 | 13,481 |
Receivables, net | [1] | 897,371 | 887,992 |
Finished homes and construction in progress | [1] | 11,092,036 | 10,455,666 |
Land and land under development | [1] | 4,734,113 | 4,904,541 |
Consolidated inventory not owned | [1] | 3,547,921 | 2,992,528 |
Investments in unconsolidated entities | [1] | 1,206,564 | 1,143,909 |
Other assets | [1] | 1,473,563 | 1,512,038 |
Total liabilities | [2] | 10,128,947 | 9,727,994 |
Accounts payable | [2] | 1,565,464 | 1,631,401 |
Liabilities related to consolidated inventory not owned | [2] | 3,043,888 | 2,540,894 |
Senior notes and other debts payable, net | [2] | 2,830,332 | 2,816,482 |
Other liabilities | [2] | 2,689,263 | 2,739,217 |
Multifamily | |||
Total assets | [1] | 1,379,279 | 1,381,513 |
Total liabilities | [2] | 249,625 | 278,177 |
Lennar Other | |||
Total assets | [1] | 749,911 | 657,852 |
Total liabilities | [2] | 73,364 | 79,127 |
Variable Interest Entity, Primary Beneficiary | |||
Total assets | 2,700,000 | 1,900,000 | |
Total liabilities | 1,800,000 | 1,200,000 | |
Variable Interest Entity, Primary Beneficiary | Homebuilding | |||
Cash and cash equivalents | 40,800 | 22,800 | |
Receivables, net | 2,000 | 1,800 | |
Finished homes and construction in progress | 9,800 | 18,300 | |
Land and land under development | 633,400 | 628,000 | |
Consolidated inventory not owned | 1,900,000 | 1,200,000 | |
Investments in unconsolidated entities | 300 | 300 | |
Other assets | 26,700 | 23,000 | |
Accounts payable | 17,700 | 53,700 | |
Liabilities related to consolidated inventory not owned | 1,700,000 | 1,100,000 | |
Senior notes and other debts payable, net | 6,000 | ||
Other liabilities | 88,500 | 38,100 | |
Inventory, Real Estate, Homebuilding Deposits and Pre-Acquisition Costs | 67,100 | 55,000 | |
Variable Interest Entity, Primary Beneficiary | Multifamily | |||
Total assets | 33,100 | 32,600 | |
Total liabilities | $ 900 | $ 4,100 | |
[1] Under certain provisions of Accounting Standards Codification (“ASC”) Topic 810, Consolidations (“ASC 810”), the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities (“VIEs”) and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations. As of February 29, 2024, total assets include $2.7 billion related to consolidated VIEs of which $40.8 million is included in Homebuilding cash and cash equivalents, $2.0 million in Homebuilding receivables, net, $9.8 million in Homebuilding finished homes and construction in progress, $633.4 million in Homebuilding land and land under development, $67.1 million in Homebuilding deposits and pre-acquisition costs on real estate, $1.9 billion in Homebuilding consolidated inventory not owned, $0.3 million in Homebuilding investments in unconsolidated entities, $26.7 million in Homebuilding other assets and $33.1 million in Multifamily assets. As of November 30, 2023, total assets include $1.9 billion related to consolidated VIEs of which $22.8 million is included in Homebuilding cash and cash equivalents, $1.8 million in Homebuilding receivables, net, $18.3 million in Homebuilding finished homes and construction in progress, $628.0 million in Homebuilding land and land under development, $55.0 million in Homebuilding deposits and pre-acquisition costs on real estate, $1.2 billion in Homebuilding consolidated inventory not owned, $0.3 million in Homebuilding investments in unconsolidated entities, $23.0 million in Homebuilding other assets and $32.6 million in Multifamily assets. As of February 29, 2024, total liabilities include $1.8 billion related to consolidated VIEs as to which there was no recourse against the Company, of which $17.7 million is included in Homebuilding accounts payable, $1.7 billion in Homebuilding liabilities related to consolidated inventory not owned, $6.0 million in Homebuilding senior notes and other debts payable, $88.5 million in Homebuilding other liabilities, and $0.9 million in Multifamily liabilities. As of November 30, 2023, total liabilities include $1.2 billion related to consolidated VIEs as to which there was no recourse against the Company, of which $53.7 million is included in Homebuilding accounts payable, $1.1 billion in Homebuilding liabilities related to consolidated inventory not owned, $38.1 million in Homebuilding other liabilities, and $4.1 million in Multifamily liabilities. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 29, 2024 | Feb. 28, 2023 | |
Revenues [Abstract] | ||
Revenues | $ 7,312,930 | $ 6,490,429 |
Cost and expenses: | ||
Corporate general and administrative | 157,321 | 126,106 |
Charitable foundation contribution | 16,798 | 13,659 |
Total costs and expenses | 6,411,834 | 5,674,155 |
Equity in losses from unconsolidated entities | (30,545) | (31,187) |
Other income (expense), net and other gains (losses) | 65,372 | 23,320 |
Earnings before income taxes | 930,786 | 784,453 |
Provision for income taxes | (210,865) | (185,145) |
Net earnings (including net earnings attributable to noncontrolling interests) | 719,921 | 599,308 |
Less: Net earnings attributable to noncontrolling interests | 587 | 2,774 |
Net earnings attributable to Lennar | 719,334 | 596,534 |
Other comprehensive income, net of tax: | ||
Net unrealized gain on securities available-for-sale | 362 | 851 |
Total other comprehensive income, net of tax | 362 | 851 |
Total comprehensive income attributable to Lennar | 719,696 | 597,385 |
Total comprehensive income attributable to noncontrolling interests | $ 587 | $ 2,774 |
Basic earnings per share (in dollars per share) | $ 2.57 | $ 2.06 |
Diluted earnings per share (in dollars per share) | $ 2.57 | $ 2.06 |
Operating Segments | ||
Revenues [Abstract] | ||
Revenues | $ 7,312,930 | $ 6,490,429 |
Homebuilding | Operating Segments | ||
Revenues [Abstract] | ||
Revenues | 6,930,991 | 6,156,305 |
Cost and expenses: | ||
Cost and expenses | 5,977,536 | 5,274,714 |
Lennar Financial Services | Operating Segments | ||
Revenues [Abstract] | ||
Revenues | 249,720 | 182,981 |
Cost and expenses: | ||
Cost and expenses | 118,424 | 104,244 |
Multifamily | Operating Segments | ||
Revenues [Abstract] | ||
Revenues | 129,677 | 143,523 |
Cost and expenses: | ||
Cost and expenses | 132,667 | 148,956 |
Lennar Other | Operating Segments | ||
Revenues [Abstract] | ||
Revenues | 2,542 | 7,620 |
Cost and expenses: | ||
Cost and expenses | 9,088 | 6,476 |
Lennar Other unrealized losses from technology investments | $ (5,137) | $ (23,954) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |||
Feb. 29, 2024 | Feb. 28, 2023 | Nov. 30, 2023 | ||
Cash flows from operating activities: | ||||
Net earnings (including net earnings attributable to noncontrolling interests) | $ 719,921 | $ 599,308 | ||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||
Depreciation and amortization | 27,139 | 20,305 | ||
Amortization of discount/premium and accretion on debt, net | 39 | (838) | ||
Equity in loss from unconsolidated entities | 30,545 | 31,187 | ||
Distributions of earnings from unconsolidated entities | 8,422 | 4,623 | ||
Share-based compensation expense | 87,680 | 86,558 | ||
Deferred income tax (benefit) expense | 11,979 | (81,940) | ||
Loans held-for-sale unrealized loss | 46,052 | 31,462 | ||
Lennar Other unrealized losses from technology investments and other (gains) losses | 2,555 | 21,372 | ||
Gain on sale of other assets | (2,671) | 0 | ||
Valuation adjustments and write-offs of option deposits and pre-acquisition costs on real estate, and other assets | 6,609 | 25,846 | ||
Changes in assets and liabilities: | ||||
Decrease in receivables | 379,102 | 602,757 | ||
Increase in inventories, excluding valuation adjustments | (285,023) | (156,229) | ||
Increase In Deposits And Pre-acquisition Costs On Real Estate | (410,936) | (21,476) | ||
Decrease (increase) in other assets | 19,061 | (5,557) | ||
Decrease in loans held-for-sale | 53,797 | 511,807 | ||
Decrease in accounts payable and other liabilities | (326,404) | (690,980) | ||
Net cash provided by operating activities | 367,867 | 978,205 | ||
Cash flows from investing activities: | ||||
Net additions of operating properties and equipment | (72,925) | (5,423) | ||
Proceeds from the sale of other assets | 5,094 | 0 | ||
Investments in and contributions to unconsolidated entities | (117,593) | (57,281) | ||
Distributions of capital from unconsolidated entities | 35,330 | 23,993 | ||
Decrease in Financial Services loans held-for-investment | 2,749 | 418 | ||
Purchases of investment securities | (2,063) | 0 | ||
Proceeds from maturities/sales of investment securities | 1,493 | 1,938 | ||
Net cash used in investing activities | (147,915) | (36,355) | ||
Cash flows from financing activities: | ||||
Net repayments under warehouse facilities | (599,514) | (963,455) | ||
Principal payments on notes payable and other borrowings | (3,750) | (26,621) | ||
Proceeds from other borrowings | 6,230 | 0 | ||
Proceeds from liabilities related to consolidated inventory not owned | 67,650 | 70,369 | ||
Payments related to liabilities related to consolidated inventory not owned | (252,446) | (177,891) | ||
Payments related to other liabilities, net | (16,922) | (1,257) | ||
Receipts related to noncontrolling interests | 5,796 | 2,497 | ||
Payments related to noncontrolling interests | (1,979) | (21,256) | ||
Common stock: | ||||
Repurchases | (595,100) | (257,958) | ||
Dividends | (139,387) | (107,891) | ||
Net cash used in financing activities | (1,529,422) | (1,483,463) | ||
Net decrease in cash and cash equivalents and restricted cash | (1,309,470) | (541,613) | ||
Cash and cash equivalents and restricted cash at beginning of period | 6,570,938 | 4,815,770 | ||
Cash and cash equivalents and restricted cash at end of period | 5,261,468 | 4,274,157 | ||
Total cash and cash equivalents and restricted cash | 5,261,468 | 4,274,157 | $ 6,570,938 | |
Operating Segments | ||||
Common stock: | ||||
Cash and cash equivalents and restricted cash at end of period | 5,261,468 | 4,274,157 | ||
Cash and cash equivalents | 5,213,765 | 6,474,497 | ||
Restricted cash | 47,703 | 96,441 | ||
Total cash and cash equivalents and restricted cash | 5,261,468 | 4,274,157 | ||
Homebuilding | ||||
Common stock: | ||||
Cash and cash equivalents | [1] | 4,950,128 | 6,273,724 | |
Restricted cash | [1] | 12,635 | 13,481 | |
Homebuilding | Operating Segments | ||||
Common stock: | ||||
Cash and cash equivalents | 4,950,128 | 4,057,956 | 6,273,724 | |
Restricted cash | 12,635 | 22,504 | 13,481 | |
Lennar Financial Services | Operating Segments | ||||
Common stock: | ||||
Cash and cash equivalents | 233,846 | 163,000 | 159,491 | |
Restricted cash | 35,068 | 8,797 | 82,960 | |
Multifamily | Operating Segments | ||||
Common stock: | ||||
Cash and cash equivalents | 27,091 | 15,075 | 39,334 | |
Restricted cash | 0 | 0 | ||
Lennar Other | Operating Segments | ||||
Common stock: | ||||
Cash and cash equivalents | 2,700 | 6,825 | 1,948 | |
Restricted cash | 0 | $ 0 | ||
Lennar Homebuilding and Lennar Multifamily | Operating Segments | ||||
Homebuilding and Multifamily: | ||||
Purchases of inventories, land under development and other assets financed by sellers | $ 23,081 | $ 13,500 | ||
[1] Under certain provisions of Accounting Standards Codification (“ASC”) Topic 810, Consolidations (“ASC 810”), the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities (“VIEs”) and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations. As of February 29, 2024, total assets include $2.7 billion related to consolidated VIEs of which $40.8 million is included in Homebuilding cash and cash equivalents, $2.0 million in Homebuilding receivables, net, $9.8 million in Homebuilding finished homes and construction in progress, $633.4 million in Homebuilding land and land under development, $67.1 million in Homebuilding deposits and pre-acquisition costs on real estate, $1.9 billion in Homebuilding consolidated inventory not owned, $0.3 million in Homebuilding investments in unconsolidated entities, $26.7 million in Homebuilding other assets and $33.1 million in Multifamily assets. As of November 30, 2023, total assets include $1.9 billion related to consolidated VIEs of which $22.8 million is included in Homebuilding cash and cash equivalents, $1.8 million in Homebuilding receivables, net, $18.3 million in Homebuilding finished homes and construction in progress, $628.0 million in Homebuilding land and land under development, $55.0 million in Homebuilding deposits and pre-acquisition costs on real estate, $1.2 billion in Homebuilding consolidated inventory not owned, $0.3 million in Homebuilding investments in unconsolidated entities, $23.0 million in Homebuilding other assets and $32.6 million in Multifamily assets. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Feb. 29, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Basis of Consolidation The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended November 30, 2023. The basis of consolidation is unchanged from the disclosure in the Company's Notes to Consolidated Financial Statements section in its Annual Report on Form 10-K for the year ended November 30, 2023. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for the fair presentation of the accompanying condensed consolidated financial statements have been made. Seasonality The Company has historically experienced, and expects to continue to experience, variability in quarterly results. The condensed consolidated statements of operations for the three months ended February 29, 2024 are not necessarily indicative of the results to be expected for the full year. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Cash and Cash Equivalents Homebuilding cash and cash equivalents as of February 29, 2024 and November 30, 2023 included $512.0 million and $594.8 million, respectively, of cash held in escrow for approximately two days. Share-based Payments During the three months ended February 29, 2024 and February 28, 2023, the Company granted employees 1.2 million and 1.6 million of nonvested shares, respectively. Recently Adopted Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09 (“ASU 2023-09”) Income Taxes (Topic 740): Improvements to Income Tax Disclosures . ASU 2023-09 requires public companies to annually (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate). ASU 2023-09 will be effective for the annual reporting periods in fiscal years beginning after December 15, 2024. The Company is currently evaluating ASU 2023-09 and does not expect it to have a material effect on the Company’s condensed consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, “ Improvements to Reportable Segment Disclosures ” (“ASU 2023-07”). ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within the segment measure of profit or loss, an amount and description of its composition for other segment items to reconcile to segment profit or loss, and the title and position of the entity’s CODM. ASU 2023-07 will be applied retrospectively and is effective for annual reporting periods in fiscal years beginning after December 15, 2023, and interim reporting periods in fiscal years beginning after December 31, 2024. The Company is currently reviewing the impact that the adoption of ASU 2023-07 may have on its condensed consolidated financial statements and disclosures. Reclassifications Certain amounts in the Company's condensed consolidated statement of operations of prior year have been reclassified to conform to the fiscal 2024 presentation. These reclassifications had no impact on the Company's total assets, total equity, revenues or net earnings in its condensed consolidated financial statements. |
Operating and Reporting Segment
Operating and Reporting Segments | 3 Months Ended |
Feb. 29, 2024 | |
Segment Reporting [Abstract] | |
Operating and Reporting Segments | Operating and Reporting Segments The Company's homebuilding operations construct and sell homes primarily for first-time, move-up and active adult homebuyers primarily under the Lennar brand name. In addition, the Company's homebuilding operations purchase, develop and sell land to third parties. The Company's chief operating decision makers manage and assess the Company’s performance at a regional level. Therefore, the Company performed an assessment of its operating segments in accordance with ASC 280, Segment Reporting , and determined that the following are its operating and reportable segments: Homebuilding segments: (1) East (2) Central (3) Texas (4) West (5) Financial Services (6) Multifamily (7) Lennar Other The assets and liabilities related to the Company’s segments were as follows: (In thousands) February 29, 2024 Assets: Homebuilding Financial Multifamily Lennar Total Cash and cash equivalents $ 4,950,128 233,846 27,091 2,700 5,213,765 Restricted cash 12,635 35,068 — — 47,703 Receivables, net (1) 897,371 304,716 82,605 — 1,284,692 Inventory owned and consolidated inventory not owned 19,374,070 — 568,689 — 19,942,759 Loans held-for-sale (2) — 1,986,715 — — 1,986,715 Investments in equity securities (3) — — — 294,246 294,246 Investments available-for-sale (4) — — — 38,315 38,315 Loans held-for-investment, net — 56,845 — — 56,845 Investments held-to-maturity — 139,706 — — 139,706 Deposits and pre-acquisition costs on real estate 2,408,877 — 31,785 — 2,440,662 Investments in unconsolidated entities 1,206,564 — 586,438 289,691 2,082,693 Goodwill 3,442,359 189,699 — — 3,632,058 Other assets 1,473,563 109,847 82,671 124,959 1,791,040 Total assets $ 33,765,567 3,056,442 1,379,279 749,911 38,951,199 Liabilities: Notes and other debts payable, net $ 2,830,332 1,564,290 — — 4,394,622 Accounts payable, liabilities related to consolidated inventory not owned and other liabilities 7,298,615 157,043 249,625 73,364 7,778,647 Total liabilities $ 10,128,947 1,721,333 249,625 73,364 12,173,269 (In thousands) November 30, 2023 Assets: Homebuilding Financial Multifamily Lennar Total Cash and cash equivalents $ 6,273,724 159,491 39,334 1,948 6,474,497 Restricted cash 13,481 82,960 — — 96,441 Receivables, net (1) 887,992 716,071 92,142 — 1,696,205 Inventory owned and consolidated inventory not owned 18,352,735 — 544,935 — 18,897,670 Loans held-for-sale (2) — 2,086,809 — — 2,086,809 Investments in equity securities (3) — — — 297,243 297,243 Investments available-for-sale (4) — — — 37,953 37,953 Loans held-for-investment, net — 55,463 — — 55,463 Investments held-to-maturity — 140,676 — — 140,676 Deposits and pre-acquisition costs on real estate 2,002,154 — 32,063 — 2,034,217 Investments in unconsolidated entities 1,143,909 — 599,852 276,244 2,020,005 Goodwill 3,442,359 189,699 — — 3,632,058 Other assets 1,512,038 135,377 73,187 44,464 1,765,066 Total assets $ 33,628,392 3,566,546 1,381,513 657,852 39,234,303 Liabilities: Notes and other debts payable, net $ 2,816,482 2,163,805 3,741 — 4,984,028 Accounts payable, liabilities related to consolidated inventory not owned and other liabilities 6,911,512 283,234 274,436 79,127 7,548,309 Total liabilities $ 9,727,994 2,447,039 278,177 79,127 12,532,337 (1) Receivables, net for Financial Services primarily related to loans sold to investors for which the Company had not yet been paid as of February 29, 2024 and November 30, 2023, 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 $123.1 million and $121.0 million without readily available fair values as of February 29, 2024 and November 30, 2023, respectively. (4) Investments available-for-sale are carried at fair value with changes in fair value recorded as a component of accumulated other comprehensive income (loss) on the condensed consolidated balance sheet. Financial information relating to the Company’s segments was as follows: Three Months Ended (In thousands) February 29, 2024 February 28, 2023 Revenues: Homebuilding $ 6,930,991 6,156,305 Financial Services 249,720 182,981 Multifamily 129,677 143,523 Lennar Other 2,542 7,620 $ 7,312,930 6,490,429 Earnings (loss) before income taxes: Homebuilding $ 1,028,796 906,839 Financial Services 131,296 78,737 Multifamily (15,639) (21,601) Lennar Other (39,548) (39,757) Corporate and Unallocated (1) (174,119) (139,765) $ 930,786 784,453 (1) Corporate and unallocated consists primarily of corporate general and administrative expenses and charitable foundation contributions. Homebuilding Segments Information about homebuilding activities in states which are not economically similar to other states in the same geographic areas is grouped under “Homebuilding Other,” which is not considered a reportable segment. Evaluation of segment performance is based primarily on operating earnings (loss) before income taxes. Operations of the Company’s Homebuilding segments primarily include the construction and sale of single-family attached and detached homes as well as the purchase, development and sale of residential land directly and through the Company’s unconsolidated entities. Operating earnings (loss) for the Homebuilding segments consist of revenues generated from the sales of homes and land, other revenues from management fees and forfeited deposits, equity in earnings (loss) from unconsolidated entities and other income (expense), net, less the cost of homes sold and land sold, and selling, general and administrative expenses incurred by the segment. Homebuilding Other also includes management of a fund that acquires single-family homes and holds them as rental properties. The Company’s reportable Homebuilding segments and all other homebuilding operations not required to be reported separately have homebuilding divisions located in: East: Alabama, Florida, New Jersey and Pennsylvania Central: Georgia, Illinois, Indiana, Maryland, Minnesota, North Carolina, South Carolina, Tennessee, and Virginia Texas: Texas West: Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah and Washington Other: Urban divisions and other homebuilding related investments primarily in California, including FivePoint Holdings, LLC (“FivePoint”) The assets related to the Company’s homebuilding segments were as follows: February 29, 2024 November 30, 2023 (In thousands) East $ 6,827,717 6,563,568 Central 4,737,106 4,511,496 Texas 3,632,938 3,337,280 West 11,933,146 11,298,812 Other 1,544,543 1,511,541 Corporate and Unallocated 5,090,117 6,405,695 Total Homebuilding $ 33,765,567 33,628,392 Financial information relating to the Company’s homebuilding segments was as follows: Three Months Ended (In thousands) February 29, 2024 February 28, 2023 Revenues East $ 1,922,797 1,697,843 Central 1,396,455 1,226,141 Texas 1,071,786 1,022,052 West 2,530,061 2,205,061 Other 9,892 5,208 $ 6,930,991 6,156,305 Operating earnings (loss) East $ 376,881 398,432 Central 161,616 156,286 Texas 168,513 125,319 West 308,787 230,500 Other 12,999 (3,698) $ 1,028,796 906,839 Financial Services Operations of the Financial Services segment include mortgage financing, title and closing services primarily for buyers of the Company’s homes. They also include originating and selling into securitizations commercial mortgage loans through its LMF Commercial business. Financial Services’ operating earnings consist of revenues generated primarily from mortgage financing, title and closing services, and sales of property and casualty insurance, less the cost of such services and certain selling, general and administrative expenses incurred by the segment. The Financial Services segment operates generally in the same states as the Company’s homebuilding operations. At February 29, 2024, the Financial Services segment had warehouse facilities which were all 364-day repurchase facilities and were used to fund residential mortgages or commercial mortgages for LMF Commercial as follows: Maximum Aggregate Commitment (In thousands) Committed Amount Uncommitted Amount Total Residential facilities maturing: March 2024 (1) $ 500,000 — 500,000 April 2024 250,000 250,000 500,000 May 2024 600,000 — 600,000 June 2024 100,000 100,000 200,000 September 2024 100,000 100,000 200,000 Total residential facilities $ 1,550,000 450,000 2,000,000 LMF commercial facilities maturing: December 2024 200,000 — 200,000 January 2025 100,000 — 100,000 Total LMF commercial facilities $ 300,000 — 300,000 Total $ 2,300,000 (1) Subsequent to February 29, 2024, the maturity date was extended to June 2024. The Financial Services segment uses residential mortgage loan 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 finance LMF Commercial loan originations and securitization activities and were secured by up to 80% interests in the originated commercial loans financed. Borrowings and collateral under the facilities were as follows: (In thousands) February 29, 2024 November 30, 2023 Borrowings under the residential facilities $ 1,344,468 2,020,187 Collateral under the residential facilities 1,395,837 2,097,020 Borrowings under the LMF Commercial facilities 89,555 12,525 If the facilities are not renewed or replaced, the borrowings under the lines of credit will be repaid by selling the mortgage loans held-for-sale to investors and by collecting receivables on loans sold but not yet paid for. Without the facilities, the Financial Services segment would have to use cash from operations and other funding sources to finance its lending activities. Substantially all of the residential loans the Financial Services segment originates are sold within a short period in the secondary mortgage market on a servicing released, non-recourse basis. After the loans are sold, the Company retains potential liability for possible claims by purchasers that it breached certain limited industry-standard representations and warranties in the loan sale agreements. Purchasers sometimes try to defray losses by purporting to have found inaccuracies related to sellers’ representations and warranties in particular loan sale agreements. Mortgage investors could seek to have the Company buy back mortgage loans or compensate them for losses incurred on mortgage loans that the Company has sold based on claims that the Company breached its limited representations or warranties. The Company’s mortgage operations have established accruals for possible losses associated with mortgage loans previously originated and sold to investors. The Company establishes accruals for such possible losses based upon, among other things, an analysis of repurchase requests received, an estimate of potential repurchase claims not yet received and actual past repurchases and losses through the disposition of affected loans, as well as previous settlements. While the Company believes that it has adequately reserved for known losses and projected repurchase requests, given the volatility in the residential mortgage industry and the uncertainty regarding the ultimate resolution of these claims, if either actual repurchases or the losses incurred resolving those repurchases exceed the Company’s expectations, additional recourse expense may be incurred. The provision for loan losses was immaterial for both the three months ended February 29, 2024 and February 28, 2023. Loan origination liabilities were $17.7 million and $17.6 million as of February 29, 2024 and November 30, 2023, respectively, and included in Financial Services’ liabilities in the Company's condensed consolidated balance sheets. LMF Commercial - loans held-for-sale LMF Commercial originated commercial loans as follows: Three Months Ended (Dollars in thousands) February 29, 2024 February 28, 2023 Originations (1) $ 140,825 79,480 Sold 26,950 77,200 Securitizations 2 1 (1) During both the three months ended February 29, 2024 and February 28, 2023, the commercial loans originated were recorded as loans held-for-sale, which are held at fair value. Investments held-to-maturity At February 29, 2024 and November 30, 2023, the Financial Services segment held commercial mortgage-backed securities (“CMBS”). These securities are classified as held-to-maturity based on the segment's intent and ability to hold the securities until maturity and changes in estimated cash flows are reviewed periodically to determine if an other-than-temporary impairment has occurred. Based on the segment’s assessment, no impairment charges were recorded during the three months ended February 29, 2024 and February 28, 2023. The Company has financing agreements to finance CMBS that have been purchased as investments by the Financial Services segment. Details related to Financial Services' CMBS were as follows: (Dollars in thousands) February 29, 2024 November 30, 2023 Carrying value $ 139,706 140,676 Outstanding debt, net of debt issuance costs 130,267 131,093 Incurred interest rate 3.4% 3.4% February 29, 2024 Discount rates at purchase 6% — 84% Coupon rates 2.0% — 5.3% Distribution dates October 2027 — December 2028 Stated maturity dates October 2050 — December 2051 Multifamily The Company is actively involved, primarily through unconsolidated funds and joint ventures, in the development, construction and property management of multifamily rental properties. The Multifamily segment focuses on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S. markets. The Multifamily Segment (i) manages, and owns interests in, funds that are engaged in the development of multifamily residential communities with the intention of holding the newly constructed and occupied properties as income and fee generating assets, and (ii) manages, and owns interests in, joint ventures that are engaged in the development of multifamily residential communities, in most instances with the intention of selling them when they are built and substantially occupied. The multifamily business is a vertically integrated platform with capabilities spanning development, construction, property management, asset management, and capital markets. Revenues are generated from the sales of land, from construction activities, and management and promote fees generated from joint ventures and other gains (which includes sales of buildings), less the cost of sales of land sold, expenses related to construction activities and general and administrative expenses. Operations of the Multifamily Segment also include equity in earnings (loss) from unconsolidated entities. Lennar Other Lennar Other primarily includes strategic investments in technology companies, primarily managed by the Company's LEN X subsidiary, and fund interests the Company retained when it sold the Rialto Capital Management ( “Rialto”) asset and investment management platform. Operations of the Lennar Other segment include operating earnings (loss) consisting of revenues generated primarily from the Company's share of carried interests in the Rialto fund investments, along with equity in earnings (loss) from the Rialto fund investments and technology investments, realized and unrealized gains (losses) from investments in equity securities and other income (expense), net from the remaining assets related to the Company's former Rialto segment. The Company has investments in Blend Labs, Inc. (“Blend Labs”), Hippo Holdings, Inc. (“Hippo”), Opendoor Technologies, Inc. (“Opendoor”), SmartRent, Inc. (“SmartRent”), Sonder Holdings, Inc. (“Sonder”) and Sunnova Energy International, Inc. (“Sunnova”), which are held at market and will therefore change depending on the value of the Company's shareholdings in those entities on the last day of each quarter. All the investments are accounted for as investments in equity securities which are held at fair value and the changes in fair values are recognized through earnings. The following is a detail of Lennar Other unrealized gains (losses) from mark-to-market adjustments on the Company's technology investments: Three Months Ended (In thousands) February 29, 2024 February 28, 2023 Blend Labs (BLND) $ 2,936 586 Hippo (HIPO) 16,449 6,632 Opendoor (OPEN) 1,315 (7,691) SmartRent (SMRT) (1,963) 1,305 Sonder (SOND) 51 (320) Sunnova (NOVA) (23,925) (24,466) Lennar Other unrealized losses from technology investments $ (5,137) (23,954) Doma Holdings, Inc. (“Doma”), which went public during the year ended November 30, 2021, is an investment that was accounted for under the equity method due to the Company's significant ownership interest of 25% of Doma which allowed the Company to exercise significant influence. As of February 29, 2024, the Company’s carrying value in Doma was zero as a result of allocated losses from Doma. |
Investments in Unconsolidated E
Investments in Unconsolidated Entities | 3 Months Ended |
Feb. 29, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Entities | Investments in Unconsolidated Entities Homebuilding Unconsolidated Entities The investments in the Company's Homebuilding unconsolidated entities were as follows: (In thousands) February 29, 2024 November 30, 2023 Investments in unconsolidated entities (1) (2) $ 1,206,564 1,143,909 Underlying equity in unconsolidated entities' net assets (1) 1,473,819 1,436,239 (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 FivePoint. (2) Included in the Company's recorded investments in Homebuilding unconsolidated entities is the Company's 40% ownership of FivePoint. As of February 29, 2024 and November 30, 2023, the carrying amount of the Company's investment was $444.5 million and $422.2 million, respectively. As of February 29, 2024 and November 30, 2023, the Homebuilding segment's unconsolidated entities had non-recourse debt with completion guarantees of $279.6 million and $316.5 million, respectively. The Company has an immaterial amount of recourse exposure to debt of the Homebuilding unconsolidated entities in which it has investments. While the Company sometimes guarantees debt of unconsolidated entities, in most instances the Company’s partners have also guaranteed that debt and are required to contribute their shares of any payments. In most instances, the amount of guaranteed debt of an unconsolidated entity is less than the value of the collateral securing it. As of both February 29, 2024 and November 30, 2023, the fair values of the repayment guarantees, maintenance guarantees, and completion guarantees were not material. The Company believes that as of February 29, 2024, in the event it becomes legally obligated to perform under a guarantee of the obligation of a Homebuilding unconsolidated entity due to a triggering event under a guarantee, the collateral would be sufficient to repay at least a significant portion of the obligation or the Company and its partners would contribute additional capital into the venture. In certain instances, the Company has placed performance letters of credit and surety bonds with municipalities with regard to obligations of its joint ventures (see Note 7 of the Notes to Condensed Consolidated Financial Statements). The details related to these are unchanged from the disclosure in the Company's Notes to the Financial Statements section in its Annual Report on Form 10-K for the year ended November 30, 2023. In 2021, the Company formed the Upward America Venture LP (“Upward America”), and is managing and participating in Upward America. Upward America is an investment fund that acquires new single-family homes in high growth markets across the United States and rents them to the people who will live in them. Upward America has raised equity commitments totaling $1.6 billion. The commitments are primarily from institutional investors, including $125 million committed by Lennar. As of February 29, 2024 and November 30, 2023, the carrying amount of the Company's investment in Upward America was $11.2 million and $14.8 million, respectively. Multifamily Unconsolidated Entities The unconsolidated joint ventures in which the Multifamily segment has investments usually finance their activities with a combination of partner equity and debt financing. In connection with many of the bank loans to Multifamily unconsolidated joint ventures, the Company (or entities related to them) have been required to give guarantees of completion and cost over-runs to the lenders and partners. The details related to these are unchanged from the disclosure in the Company's Notes to the Financial Statements section in its Annual Report on Form 10-K for the year ended November 30, 2023. As of both February 29, 2024 and November 30, 2023, the fair value of the completion guarantees was immaterial. As of February 29, 2024 and November 30, 2023, Multifamily segment's unconsolidated entities had non-recourse debt with completion guarantees of $1.1 billion and $1.4 billion, respectively. In many instances, the Multifamily segment is appointed as the construction, development and property manager for its Multifamily unconsolidated entities and receives fees for performing this function. Each Multifamily real estate investment trust, JV and fund has unilateral decision making rights related to development and other sales activity through its executive committee or asset management committee. The Multifamily segment also provides general contractor services for construction of some of the rental properties owned by unconsolidated entities in which the Company has investments. In some situations, the Multifamily segment sells land to various joint ventures and funds. The details of the activity were as follows: Three Months Ended (In thousands) February 29, 2024 February 28, 2023 General contractor services, net of deferrals $ 101,635 125,402 General contractor costs 95,688 120,733 Management fee income, net of deferrals 16,042 18,121 The Multifamily segment includes managing and investing in Multifamily Venture Fund I (“LMV I”), Multifamily Venture Fund II LP (“LMV II”) and Canada Pension Plan Investments Fund (the “CPPIB Fund”), which are long-term multifamily development investment vehicles involved in the development, construction and property management of class-A multifamily assets. The Multifamily segment completed the initial closing of the CPPIB Fund. The Multifamily segment expects the CPPIB Fund to have almost $1.0 billion in equity and Lennar's ownership percentage in the CPPIB Fund is 4%. As of February 29, 2024, the Company had a $23.1 million investment in the CPPIB Fund. Additional dollars will be committed as opportunities are identified by the CPPIB Fund. Details of LMV I and LMV II as of and during the three months ended February 29, 2024 are included below: February 29, 2024 (In thousands) LMV I LMV II Lennar's carrying value of investments $ 185,262 261,305 Equity commitments 2,204,016 1,257,700 Equity commitments called 2,154,328 1,218,619 Lennar's equity commitments 504,016 381,000 Lennar's equity commitments called 500,381 368,170 Lennar's remaining commitments (1) 3,635 12,830 Distributions to Lennar during the three months ended February 29, 2024 — 208 (1) While there are remaining commitments with LMV I and LMV II, there are no plans for additional capital calls. Other Unconsolidated Entities Lennar Other's unconsolidated entities include fund investments the Company retained when it sold the Rialto assets and investment management platform in 2018, as well as strategic investments in technology companies and investment funds. The Company's investment in the Rialto funds totaled $142.2 million and $148.7 million as of February 29, 2024 and November 30, 2023, respectively. In addition, the Company is entitled to a portion of the carried interest distributions by those funds. The Company also had strategic technology investments in unconsolidated entities and investment funds with a carrying value of $147.5 million and $127.5 million, as of February 29, 2024 and November 30, 2023, respectively. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Feb. 29, 2024 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity The following tables reflect the changes in equity attributable to both Lennar Corporation and the noncontrolling interests of its consolidated subsidiaries in which it has less than a 100% ownership interest for the three months ended February 29, 2024 and February 28, 2023: Three Months Ended February 29, 2024 (In thousands) Total Class A Class B Additional Treasury Accumulated Other Comprehensive Income Retained Noncontrolling Balance at November 30, 2023 $ 26,701,966 25,848 3,660 5,570,009 (1,393,100) 4,879 22,369,368 121,302 Net earnings (including net earnings attributable to noncontrolling interests) 719,921 — — — — — 719,334 587 Employee stock and directors plans (83,473) 135 — (65) (83,543) — — — Purchases of treasury stock (511,557) — — — (511,557) — — — Amortization of restricted stock 87,680 — — 87,680 — — — — Cash dividends (139,387) — — — — — (139,387) — Receipts related to noncontrolling interests 5,796 — — — — — — 5,796 Payments related to noncontrolling interests (1,979) — — — — — — (1,979) Non-cash purchase or activity of noncontrolling interests, net (1,399) — — (5,788) — — — 4,389 Total other comprehensive income, net of tax 362 — — — — 362 — — Balance at February 29, 2024 $ 26,777,930 25,983 3,660 5,651,836 (1,988,200) 5,241 22,949,315 130,095 Three Months Ended February 28, 2023 (In thousands) Total Class A Class B Additional Treasury Accumulated Other Comprehensive Income Retained Noncontrolling Balance at November 30, 2022 $ 24,240,367 25,608 3,660 5,417,796 (210,389) 2,408 18,861,417 139,867 Net earnings (including net earnings attributable to noncontrolling interests) 599,308 — — — — — 596,534 2,774 Employee stock and directors plans (66,990) 226 — (189) (67,027) — — — Purchases of treasury stock (190,931) — — — (190,931) — — — Amortization of restricted stock 86,558 — — 86,558 — — — — Cash dividends (107,891) — — — — — (107,891) — Receipts related to noncontrolling interests 2,497 — — — — — — 2,497 Payments related to noncontrolling interests (21,256) — — — — — — (21,256) Non-cash purchase or activity of noncontrolling interests, net 12,774 — — (376) — — — 13,150 Total other comprehensive income, net of tax 851 — — — — 851 — — Balance at February 28, 2023 $ 24,555,287 25,834 3,660 5,503,789 (468,347) 3,259 19,350,060 137,032 On February 7, 2024, the Company paid a quarterly cash dividend of $0.50 per share for both of its Class A and Class B common stock to holders of record at the close of business on January 24, 2024, as declared by its Board of Directors on January 9, 2024. The Company approved and paid cash dividends of $0.375 per share for each of the four quarters of 2023 on both its Class A and Class B common stock. In March 2022, the Company's Board of Directors approved an authorization for the Company to repurchase up to the lesser of $2 billion in value, or 30 million in shares, of its outstanding Class A or Class B common stock. The repurchase authorization has no expiration date. The authorization was in addition to what was remaining of the October 2021 stock repurchase program. In January 2024, the Company's Board of Directors authorized an increase to its stock repurchase program to enable it to repurchase up to an additional $5 billion in value of its outstanding Class A or Class B common stock. Repurchases are authorized to be made in open-market or private transactions. The repurchase authorization has no expiration date. The following table sets forth the repurchases of the Company's Class A and Class B common stock under the authorized repurchase programs: Three Months Ended February 29, 2024 February 28, 2023 (Dollars in thousands, except price per share) Class A Class B Class A Class B Shares repurchased 3,026,128 373,872 1,446,205 553,795 Total purchase price $ 454,788 $ 51,637 $ 143,068 $ 46,105 Average price per share $ 150.29 $ 138.11 $ 98.93 $ 83.25 |
Income Taxes
Income Taxes | 3 Months Ended |
Feb. 29, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes and effective tax rate were as follows: Three Months Ended (Dollars in thousands) February 29, 2024 February 28, 2023 Provision for income taxes $210,865 185,145 Effective tax rate (1) 22.7% 23.7% (1) |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Feb. 29, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net earnings attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. All outstanding nonvested shares that contain non-forfeitable rights to dividends or dividend equivalents that participate in undistributed earnings with common stock are considered participating securities and are included in computing earnings per share pursuant to the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating securities according to dividends or dividend equivalents and participation rights in undistributed earnings. The Company’s restricted common stock (“nonvested shares”) is considered participating securities. Basic and diluted earnings per share were calculated as follows: Three Months Ended (In thousands, except per share amounts) February 29, 2024 February 28, 2023 Numerator: Net earnings attributable to Lennar $ 719,334 596,534 Less: distributed earnings allocated to nonvested shares 1,023 724 Less: undistributed earnings allocated to nonvested shares 5,877 5,895 Numerator for basic earnings per share 712,434 589,915 Less: net amount attributable to Rialto's Carried Interest Incentive Plan (1) — 1,038 Numerator for diluted earnings per share $ 712,434 588,877 Denominator: Denominator for basic earnings per share - weighted average common shares outstanding 276,946 286,074 Denominator for diluted earnings per share - weighted average common shares outstanding 276,946 286,074 Basic earnings per share $ 2.57 2.06 Diluted earnings per share $ 2.57 2.06 (1) The amount presented relate to Rialto's Carried Interest Incentive Plan and represents the difference between the advanced tax distributions received from the Rialto funds included in the Lennar Other segment and the amount Lennar is assumed to own. For both the three months ended February 29, 2024 and February 28, 2023, there were no options to purchase shares of common stock that were outstanding and anti-dilutive. |
Homebuilding Senior Notes and O
Homebuilding Senior Notes and Other Debts Payable | 3 Months Ended |
Feb. 29, 2024 | |
Debt Disclosure [Abstract] | |
Homebuilding Senior Notes and Other Debts Payable | Homebuilding Senior Notes and Other Debts Payable (Dollars in thousands) February 29, 2024 November 30, 2023 4.50% senior notes due 2024 $ 453,792 453,682 4.75% senior notes due 2025 499,447 499,336 5.25% senior notes due 2026 402,737 403,040 5.00% senior notes due 2027 351,261 351,357 4.75% senior notes due 2027 797,513 797,347 Mortgage notes on land and other debt 325,582 311,720 $ 2,830,332 2,816,482 The carrying amounts of the senior notes in the table above are net of debt issuance costs of $3.8 million and $4.2 million as of February 29, 2024 and November 30, 2023, respectively. The maximum available borrowings on the Company's unsecured revolving credit facility (the “Credit Facility”) were as follows: (In thousands) February 29, 2024 Commitments - maturing in April 2024 $ 350,000 Commitments - maturing in May 2027 2,225,000 Total commitments $ 2,575,000 Accordion feature 425,000 Total maximum borrowings capacity $ 3,000,000 The proceeds available under the Credit Facility, which are subject to specified conditions for borrowing, may be used for working capital and general corporate purposes. The Credit Facility also provides that up to $500 million in commitments may be used for letters of credit. The maturity, debt covenants and details of the Credit Facility are unchanged from the disclosure in the Company's Financial Condition and Capital Resources section in its Annual Report on Form 10-K for the year ended November 30, 2023. In addition to the Credit Facility, the Company has other letter of credit facilities with different financial institutions. The Company's processes for posting performance and financial letters of credit and surety bonds are unchanged from the disclosure in the Company's Financial Condition and Capital Resources section in its Annual Report on Form 10-K for the year ended November 30, 2023. The Company's outstanding letters of credit and surety bonds are disclosed below: (In thousands) February 29, 2024 November 30, 2023 Performance letters of credit $ 1,526,220 1,404,541 Financial letters of credit 476,545 417,976 Surety bonds 4,596,432 4,508,428 Anticipated future costs primarily for site improvements related to performance surety bonds 2,588,531 2,499,680 |
Financial Instruments and Fair
Financial Instruments and Fair Value Disclosures | 3 Months Ended |
Feb. 29, 2024 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Disclosures | Financial Instruments and Fair Value Disclosures The following table presents the carrying amounts and estimated fair values of financial instruments held or issued by the Company at February 29, 2024 and November 30, 2023, using available market information and what the Company believes to be appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies might have a material effect on the estimated fair value amounts. The table excludes cash and cash equivalents, restricted cash, receivables, net and accounts payable, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments. February 29, 2024 November 30, 2023 (In thousands) Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value ASSETS Financial Services: Loans held-for-investment, net Level 3 $ 56,845 56,845 55,463 55,463 Investments held-to-maturity Level 3 139,706 140,886 140,676 139,396 LIABILITIES Homebuilding senior notes and other debts payable, net Level 2 $ 2,830,332 2,808,473 2,816,482 2,785,712 Financial Services notes and other debts payable, net Level 2 1,564,290 1,564,710 2,163,805 2,164,441 Multifamily notes payable, net Level 2 — — 3,741 3,741 The following methods and assumptions are used by the Company in estimating fair values: Financial Services - The fair values above are based on quoted market prices, if available. The fair values for instruments that do not have quoted market prices are estimated by the Company on the basis of discounted cash flows or other financial information. For notes and other debts payable, the fair values approximate their carrying value due to variable interest pricing terms and the short-term nature of the majority of the borrowings. Homebuilding - For senior notes and other debts payable, the fair value of fixed-rate borrowings is primarily based on quoted market prices and the fair value of variable-rate borrowings is based on expected future cash flows calculated using current market forward rates. Multifamily - For notes payable, the fair values approximate their carrying value due to variable interest pricing terms and the short-term nature of the borrowings. Fair Value Measurements: GAAP provides a framework for measuring fair value, expands disclosures about fair value measurements and establishes a fair value hierarchy which prioritizes the inputs used in measuring fair value summarized as follows: Level 1: Fair value determined based on quoted prices in active markets for identical assets. Level 2: Fair value determined using significant other observable inputs. Level 3: Fair value determined using significant unobservable inputs. The Company’s financial instruments measured at fair value on a recurring basis are summarized below: Fair Value Hierarchy Fair Value at (In thousands) February 29, 2024 November 30, 2023 Financial Services Assets: Residential loans held-for-sale Level 2 $ 1,861,318 2,073,350 LMF Commercial loans held-for-sale Level 3 125,397 13,459 Mortgage servicing rights Level 3 3,475 3,440 Forward options Level 1 4,319 5,937 Lennar Other Assets: Investments in equity securities Level 1 $ 171,137 176,198 Investments available-for-sale Level 3 38,315 37,953 Residential and LMF Commercial loans held-for-sale in the table above include: February 29, 2024 November 30, 2023 (In thousands) Aggregate Principal Balance Change in Fair Value Aggregate Principal Balance Change in Fair Value Residential loans held-for-sale $ 1,917,795 (56,477) 2,083,776 (10,426) LMF Commercial loans held-for-sale 127,525 (2,128) 13,650 (191) Financial Services residential loans held-for-sale - Fair value is based on independent quoted market prices, where available, or the prices for other mortgage whole loans with similar characteristics. The Company recognizes the fair value of its rights to service a mortgage loan as revenue upon entering into an interest rate lock loan commitment with a borrower. The fair value of these are included in Financial Services’ loans held-for-sale as of February 29, 2024 and November 30, 2023. Fair value of servicing rights is determined based on actual sales of servicing rights on loans with similar characteristics. LMF Commercial loans held-for-sale - The fair value of commercial loans held-for-sale is calculated from model-based techniques that use discounted cash flow assumptions and the Company’s own estimates of CMBS spreads, market interest rate movements and the underlying loan credit quality. The details and methods of the calculation are unchanged from the fair value disclosure in the Company's Notes to the Financial Statements section in its Annual Report on Form 10-K for the year ended November 30, 2023. These methods use unobservable inputs in estimating a discount rate that is used to assign a value to each loan. While the cash payments on the loans are contractual, the discount rate used and assumptions regarding the relative size of each class in the CMBS capital structure can significantly impact the valuation. Therefore, the estimates used could differ materially from the fair value determined when the loans are sold to a securitization trust. Mortgage servicing rights - Financial Services records mortgage servicing rights when it sells loans on a servicing-retained basis or through the acquisition or assumption of the right to service a financial asset. The fair value of the mortgage servicing rights is calculated using third-party valuations. The key assumptions, which are generally unobservable inputs, used in the valuation of the mortgage servicing rights include mortgage prepayment rates, discount rates and delinquency rates and are noted below: As of February 29, 2024 As of November 30, 2023 Unobservable inputs Mortgage prepayment rate 8% 8% Discount rate 13% 13% Delinquency rate 9% 9% Forward options - Fair value of forward options is based on independent quoted market prices for similar financial instruments. The fair value of these are included in Financial Services' other assets and the Company recognizes the changes in the fair value of the premium paid as Financial Services' Revenue. Lennar Other investments in equity securities - The fair value of investments in equity securities was calculated based on independent quoted market prices. The Company’s investments in equity securities were recorded at fair value with all changes in fair value recorded to Lennar Other unrealized gains (losses) from technology investments on the Company’s condensed consolidated statements of operations and comprehensive income. Lennar Other investments available-for-sale - The fair value of investments available-for-sale is calculated from model-based techniques that use discounted cash flow assumptions and the Company’s own estimates of CMBS spreads, market interest rate movements and the underlying loan credit quality. Loan values are calculated by allocating the change in value of an assumed CMBS capital structure to each loan. The value of an assumed CMBS capital structure is calculated, generally, by discounting the cash flows associated with each CMBS class at market interest rates and at the Company’s own estimate of CMBS spreads. The changes in fair values for Level 1 and Level 2 financial instruments measured on a recurring basis are shown below by financial instrument and financial statement line item: Three Months Ended (In thousands) February 29, 2024 February 28, 2023 Changes in fair value included in Financial Services revenues: Loans held-for-sale $ (46,052) (31,462) Mortgage loan commitments (30,655) (48,844) Forward contracts 101,846 91,509 Forward options (344) (852) Changes in fair value included in Lennar Other unrealized losses from technology investments: Investments in equity securities $ (5,137) (23,954) Changes in fair value included in other comprehensive income, net of tax: Lennar Other investments available-for-sale $ 362 851 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 sets forth the reconciliation of the beginning and ending balance for the Level 3 recurring fair value measurements in the Company's Financial Services segment: Three Months Ended February 29, 2024 February 28, 2023 (In thousands) Mortgage servicing rights LMF Commercial loans held-for-sale Mortgage servicing rights LMF Commercial loans held-for-sale Beginning balance $ 3,440 13,459 3,463 25,599 Purchases/loan originations 61 140,825 51 79,480 Sales/loan originations sold, including those not settled — (26,950) — (77,200) Disposals/settlements (26) — (63) — Changes in fair value (1) — (2,128) (1) (445) Interest and principal paydowns — 191 — (1,599) Ending balance $ 3,475 125,397 3,450 25,835 (1) Changes in fair value for LMF Commercial loans held-for-sale and Financial Services mortgage servicing rights are included in Financial Services' revenues. The Company’s assets measured at fair value on a nonrecurring basis are those assets for which the Company has recorded valuation adjustments and write-offs. The fair values included in the table below represent only those assets whose carrying values were adjusted to fair value during the respective periods disclosed. The assets measured at fair value on a nonrecurring basis are summarized below: Three Months Ended February 29, 2024 February 28, 2023 (In thousands) Fair Value Carrying Value Fair Value Total Losses, Net (1) Carrying Value Fair Value Total Losses, Net (1) Non-financial assets - Homebuilding: Finished homes and construction in progress (2) Level 3 $ 71,756 68,017 (3,739) 164,544 158,237 (6,307) Land and land under development (2) Level 3 2,870 — (2,870) 39,616 23,142 (16,474) Investments in unconsolidated entities (3) Level 3 — — — 3,065 — (3,065) (1) Represents losses due to valuation adjustments and deposit and pre-acquisition write-offs recorded during the respective periods. (2) Valuation adjustments for finished homes and construction in progress, and land and land under development were included in Homebuilding costs and expenses. During the three months ended February 29, 2024 and February 28, 2023, total losses, net, for land and land under development included $2.9 million and $14.5 million, respectively, of deposit and pre-acquisition cost write-offs. (3) Valuation adjustments related to investments in unconsolidated entities were primarily included in Homebuilding other income (expense), net in the Company's condensed consolidated statements of operations and comprehensive income for the three months ended February 28, 2023. Finished homes and construction in progress are included within inventories. Inventories are stated at cost unless the inventory within a community is determined to be impaired, in which case the impaired inventory is written down to fair value. The Company disclosed its accounting policy related to inventories and its review for indicators of impairment in the Summary of Significant Accounting Policies in its Annual Report on Form 10-K for the year ended November 30, 2023. The Company estimates the fair value of inventory evaluated for impairment based on market conditions and assumptions made by management at the time the inventory is evaluated, which may differ materially from actual results if market conditions or assumptions change. For example, changes in market conditions and other specific developments or changes in assumptions may cause the Company to re-evaluate its strategy regarding previously impaired inventory, as well as inventory not currently impaired but for which indicators of impairment may arise if market deterioration occurs, and certain other assets that could result in further valuation adjustments and/or additional write-offs of option deposits and pre-acquisition costs due to abandonment of those options contracts. On a quarterly basis, the Company reviews its active communities for indicators of potential impairments. The table below summarizes communities reviewed for indicators of impairment and communities with valuation adjustments recorded: Communities with valuation adjustments At or for the Three Months Ended # of active communities # of communities with potential indicator of impairment # of communities Fair Value (in thousands) Valuation Adjustments (in thousands) February 29, 2024 1,227 31 2 $ 4,863 $ (1,521) February 28, 2023 1,210 27 — — — The table below summarizes the most significant unobservable inputs used in the Company's discounted cash flow model to determine the fair value of its communities for which the Company recorded valuation adjustments: Three Months Ended February 29, 2024 Unobservable inputs Range Average selling price (1) $178,000 — 197,000 Absorption rate per quarter (homes) 10 — 13 Discount rate 20% (1) Represents the projected average selling price on future deliveries for communities in which the Company recorded valuation adjustments during the quarter ended February 29, 2024. The Company disclosed its accounting policy related to investments in unconsolidated entities and its review for indicators of impairment for the long-lived assets of an unconsolidated entity and the decline in the fair value of an investment below the carrying value in the Summary of Significant Accounting Policies in its Annual Report on Form 10-K for the year ended November 30, 2023. The Company evaluates if a decrease in the fair value of an investment below the 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, (3) the length of the time and the extent to which the market value has been less than cost and (4) various other factors, which include age of the venture, relationships with the other partners and banks, general economic market conditions, land status, length of the time and the extent to which the market value has been below the carrying value, and liquidity needs of the unconsolidated entity. The Company generally estimates the fair value of an investment in an unconsolidated entity by using a cash flow analysis for estimated future net distributions from an unconsolidated entity, subject to the perceived risks associated with the unconsolidated entity’s cash flow streams. During the three months ended February 29, 2024, the Company evaluated the fair value of its investments in unconsolidated entities using a cash flow analysis and concluded that the investments had no other-than-temporary impairment. The Company estimates the fair value of investments in unconsolidated entities evaluated for impairment based on market conditions and assumptions made by management at the time the investment is evaluated, which may differ materially from actual results if market conditions or assumptions change. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Feb. 29, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities During the three months ended February 29, 2024, the Company evaluated the joint venture (“JV”) agreements of its JV's that were formed or that had reconsideration events, such as changes in the governing documents or to debt arrangements. Based on the Company's evaluation, there were no variable interest entities (“VIEs”) that were consolidated or deconsolidated during the three months ended February 29, 2024. The carrying amount of the Company's consolidated VIEs' assets and non-recourse liabilities are disclosed in the footnote to the condensed consolidated balance sheets. A VIE’s assets can only be used to settle obligations of that VIE. The VIEs are not guarantors of the Company’s senior notes or other debts payable. The assets held by a VIE are usually collateral for that VIE’s debt. The Company and other partners do not generally have an obligation to make capital contributions to a VIE unless the Company and/or the other partner(s) have entered into debt guarantees with VIE’s lenders. Other than debt guarantee agreements with VIE’s lenders, there are no liquidity arrangements or agreements to fund capital or purchase assets that could require the Company to provide financial support to a VIE. While the Company has option contracts to purchase land from certain of its VIEs, the Company is not required to purchase the assets and could walk away from the contracts, but that would require forfeiture of deposits and pre-acquisition costs. Unconsolidated VIEs The Company’s recorded investments in VIEs that are unconsolidated and related estimated maximum exposure to loss were as follows: February 29, 2024 November 30, 2023 (In thousands) Investments in Lennar’s Maximum Investments in Lennar’s Maximum Homebuilding (1) $ 706,374 826,038 659,224 787,226 Multifamily (2) 388,109 406,710 384,718 402,735 Financial Services (3) 139,706 139,706 140,676 140,676 Lennar Other (4) 74,019 74,019 56,009 56,009 $ 1,308,208 1,446,473 1,240,627 1,386,646 (1) As of February 29, 2024 and November 30, 2023, the Company's maximum exposure to loss of Homebuilding's investments in unconsolidated VIEs was limited to its investments in unconsolidated VIEs, except with regard to the Company's remaining commitment to fund capital in Upward America of $68.8 million and $69.8 million, respectively. In addition, as of February 29, 2024 and November 30, 2023, there was recourse debt of a VIE of $42.0 million and $42.1 million, respectively. (2) As of February 29, 2024 and November 30, 2023, the Company's maximum exposure to loss of Multifamily's investments in unconsolidated VIEs was primarily limited to its investments in the unconsolidated VIEs. The maximum exposure for LMV II, in addition to the investment, also included the remaining combined equity commitment of $12.8 million as of both February 29, 2024 and November 30, 2023 for future expenditures related to the construction and development of its projects. (3) As of both February 29, 2024 and November 30, 2023, the Company's maximum exposure to loss of the Financial Services segment was limited to its investment in the unconsolidated VIEs and related to the Financial Services' CMBS investments held-to-maturity. (4) At February 29, 2024, the Company's maximum recourse exposure to loss of the Lennar Other segment was limited to its investments in the unconsolidated VIEs. The Company and its JV partners generally fund JVs as needed and in accordance with business plans to allow the entities to finance their activities. Because such JVs are expected to make future capital calls in order to continue to finance their activities, the entities are determined to be VIEs as of February 29, 2024 in accordance with ASC 810 due to insufficient equity at risk. While these entities are VIEs, the Company has determined that the power to direct the activities of the VIEs that most significantly impact the VIEs’ economic performance is generally shared and the Company and its partners are not de-facto agents. While the Company generally manages the day-to-day operations of the VIEs, each of these VIEs has an executive committee made up of representatives from each partner. The members of the executive committee have equal votes and major decisions require unanimous consent and approval from all members. The Company does not have the unilateral ability to exercise participating voting rights without partner consent. There are no liquidity arrangements or agreements to fund capital or purchase assets that could require the Company to provide financial support to the VIEs. Except for the unconsolidated VIEs discussed above, the Company and the other partners did not guarantee any debt of the other unconsolidated VIEs. While the Company has option contracts to purchase land from certain of its unconsolidated VIEs, the Company is not required to purchase the assets and could walk away from the contracts. Option Contracts The Company has access to land through option contracts, which generally enable it to control portions of properties owned by third parties (including land banks) until the Company has determined whether to exercise the options. The Company evaluates option contracts with third party land holding companies 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, and makes a significant deposit or pre-acquisition cost investment for optioned land, or is otherwise economically compelled to takedown the optioned land it may need to consolidate the land under option at the purchase price of the optioned land. Land under option with third party holding companies that the Company was economically compelled to takedown was $1.9 billion as of February 29, 2024 and is included in consolidated inventory not owned. Consolidated inventory not owned related to land financing transactions, which are land sale transactions that did not meet the criteria for revenue recognition and derecognition of land by the Company as a result of the Company maintaining an option to repurchase the land in the future, was $1.7 billion as of February 29, 2024. During the three months ended February 29, 2024, consolidated inventory not owned increased by $555.4 million with a corresponding increase to liabilities related to consolidated inventory not owned in the accompanying condensed consolidated balance sheet as of February 29, 2024. The increase was primarily due to land financing transactions and the consolidation of homesites under option that the Company is economically compelled to takedown. These increases were partially offset by homesite 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 finished homes and construction in progress in the accompanying condensed consolidated balance sheet as of February 29, 2024. The liabilities related to consolidated inventory not owned primarily represent the difference between the option exercise prices for the optioned land and the Company’s cash deposits. The Company's exposure to losses on its option contracts with third parties and unconsolidated entities was as follows: (Dollars in thousands) February 29, 2024 November 30, 2023 Non-refundable option deposits and pre-acquisition costs $ 2,325,346 1,949,219 Non-refundable option deposits included in consolidated inventory not owned 504,033 451,632 Letters of credit in lieu of cash deposits under certain land and option contracts 226,816 198,920 For the three months ended February 29, 2024, the Company purchased a significant portion of land from one land bank (the “Land Bank”). There were no amounts due to the Land Bank as of February 29, 2024, resulting from land purchases as the full purchase price of the land is typically paid to the Land Bank at closing when land is purchased by the Company. As of February 29, 2024, the total deposits and pre-acquisition costs on real estate relating to contracts with the Land Bank were $669.9 million. As of February 29, 2024, total consolidated inventory not owned and liabilities related to consolidated inventory not owned relating to contracts with the Land Bank were $886.2 million and $749.2 million, respectively. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Feb. 29, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities The Company is party to various claims, legal actions and complaints relating to homes sold by the Company arising in the ordinary course of business. In the opinion of management, the disposition of these matters will not have a material adverse effect on the Company’s condensed consolidated financial statements. From time to time, the Company is also a party to various lawsuits involving purchases and sales of real property. These lawsuits often include claims regarding representations and warranties made in connection with the transfer of properties and disputes regarding the obligation to purchase or sell properties. The Company does not believe that the ultimate resolution of these claims or lawsuits will have a material adverse effect on its business or financial position. However, the financial effect of litigation concerning purchases and sales of property may depend upon the value of the subject property, which may have changed from the time the agreement for purchase or sale was entered into. Product Warranty Warranty and similar reserves for homes are established at an amount estimated to be adequate to cover potential costs for materials and labor with regard to warranty-type claims expected to be incurred subsequent to the delivery of a home. Reserves are determined based on historical data and trends with respect to similar product types and geographical areas. The activity in the Company’s warranty reserve, which is included in Homebuilding other liabilities, was as follows: Three Months Ended (In thousands) February 29, 2024 February 28, 2023 Warranty reserve, beginning of the period $ 414,796 418,017 Warranties issued 61,776 53,679 Adjustments to pre-existing warranties from changes in estimates (1) (2,904) (4,058) Payments (68,110) (64,304) Warranty reserve, end of period $ 405,558 403,334 (1) The adjustments to pre-existing warranties from changes in estimates during the three months ended February 29, 2024 and February 28, 2023 primarily related to specific claims in certain of the Company's homebuilding communities and other adjustments. Leases The Company has entered into agreements to lease certain office facilities and equipment under operating leases. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. Right-of-use (“ROU”) assets and lease liabilities are recorded on the balance sheet for all leases, except leases with an initial term of 12 months or less. Many of the Company's leases include options to renew. The exercise of lease renewal options is at the Company's option and therefore renewal option payments have not been included in the ROU assets or lease liabilities. The following table includes additional information about the Company's leases: (Dollars in thousands) February 29, 2024 November 30, 2023 Right-of-use assets $ 104,784 145,812 Lease liabilities 112,671 154,271 Weighted-average remaining lease term (in years) 5.0 7.5 Weighted-average discount rate 3.8% 3.4% 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 February 29, 2024 were as follows: (In thousands) Lease Payments 2024 $ 22,939 2025 27,790 2026 22,092 2027 17,418 2028 and thereafter 34,262 Total future minimum lease payments (1) $ 124,501 Less: Interest (2) 11,830 Present value of lease liabilities (2) $ 112,671 (1) Total future minimum lease payments exclude variable lease costs of $15.3 million and short-term lease costs of $2.4 million. (2) The Company's leases do not include a readily determinable implicit rate. As such, the Company has estimated the discount rate for these leases to determine the present value of lease payments at the lease commencement date or as of December 1, 2019, which was the effective date of ASU 2016-02. The Company recognized the lease liabilities on its condensed consolidated balance sheets within accounts payable and other liabilities of the respective segments. The Company's rental expense on lease liabilities were as follows: Three Months Ended (In thousands) February 29, 2024 February 28, 2023 Rental expense $ 26,217 26,904 In December 2023, the Company purchased its corporate headquarters building in which the Company had previously leased office space. This building contains approximately 213,200 square feet of office space, of which the Company leases approximately 53,000 square feet of unused office space to other tenants. On occasion, the Company may sublease rented space which is no longer used for the Company's operations. For both the three months ended February 29, 2024 and February 28, 2023, the Company had an immaterial amount of sublease income. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 29, 2024 | Feb. 28, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) Attributable to Parent | $ 719,334 | $ 596,534 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Feb. 29, 2024 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Jeff J. McCall [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On February 9, 2024, Jeff J. McCall, Executive Vice President, entered into a trading plan designed to satisfy the affirmative defense of Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “Plan”). The Plan provided for sales of up to 30,000 shares of our common stock beginning on May 10, 2024 until December 10, 2024 or once all of the shares have been sold. The trading plan was adopted in accordance with our insider trading policy. Actual sale transactions will be disclosed publicly in filings with the SEC in accordance with applicable securities laws, rules and regulations. |
Name | Jeff J. McCall |
Title | Executive Vice President |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | February 9, 2024 |
Arrangement Duration | 214 days |
Aggregate Available | 30,000 |
Basis of Presentation (Policy)
Basis of Presentation (Policy) | 3 Months Ended |
Feb. 29, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. |
Basis of Consolidation | These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended November 30, 2023. The basis of consolidation is unchanged from the disclosure in the Company's Notes to Consolidated Financial Statements section in its Annual Report on Form 10-K for the year ended November 30, 2023. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for the fair presentation of the accompanying condensed consolidated financial statements have been made. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09 (“ASU 2023-09”) Income Taxes (Topic 740): Improvements to Income Tax Disclosures . ASU 2023-09 requires public companies to annually (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate). ASU 2023-09 will be effective for the annual reporting periods in fiscal years beginning after December 15, 2024. The Company is currently evaluating ASU 2023-09 and does not expect it to have a material effect on the Company’s condensed consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, “ Improvements to Reportable Segment Disclosures ” (“ASU 2023-07”). ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within the segment measure of profit or loss, an amount and description of its composition for other segment items to reconcile to segment profit or loss, and the title and position of the entity’s CODM. ASU 2023-07 will be applied retrospectively and is effective for annual reporting periods in fiscal years beginning after December 15, 2023, and interim reporting periods in fiscal years beginning after December 31, 2024. The Company is currently reviewing the impact that the adoption of ASU 2023-07 may have on its condensed consolidated financial statements and disclosures. |
Reclassifications | Reclassifications Certain amounts in the Company's condensed consolidated statement of operations of prior year have been reclassified to conform to the fiscal 2024 presentation. These reclassifications had no impact on the Company's total assets, total equity, revenues or net earnings in its condensed consolidated financial statements. |
Operating and Reporting Segme_2
Operating and Reporting Segments (Tables) | 3 Months Ended |
Feb. 29, 2024 | |
Segment Reporting [Abstract] | |
Disclosure Of Financial Information Relating To Company's Operations | The assets and liabilities related to the Company’s segments were as follows: (In thousands) February 29, 2024 Assets: Homebuilding Financial Multifamily Lennar Total Cash and cash equivalents $ 4,950,128 233,846 27,091 2,700 5,213,765 Restricted cash 12,635 35,068 — — 47,703 Receivables, net (1) 897,371 304,716 82,605 — 1,284,692 Inventory owned and consolidated inventory not owned 19,374,070 — 568,689 — 19,942,759 Loans held-for-sale (2) — 1,986,715 — — 1,986,715 Investments in equity securities (3) — — — 294,246 294,246 Investments available-for-sale (4) — — — 38,315 38,315 Loans held-for-investment, net — 56,845 — — 56,845 Investments held-to-maturity — 139,706 — — 139,706 Deposits and pre-acquisition costs on real estate 2,408,877 — 31,785 — 2,440,662 Investments in unconsolidated entities 1,206,564 — 586,438 289,691 2,082,693 Goodwill 3,442,359 189,699 — — 3,632,058 Other assets 1,473,563 109,847 82,671 124,959 1,791,040 Total assets $ 33,765,567 3,056,442 1,379,279 749,911 38,951,199 Liabilities: Notes and other debts payable, net $ 2,830,332 1,564,290 — — 4,394,622 Accounts payable, liabilities related to consolidated inventory not owned and other liabilities 7,298,615 157,043 249,625 73,364 7,778,647 Total liabilities $ 10,128,947 1,721,333 249,625 73,364 12,173,269 (In thousands) November 30, 2023 Assets: Homebuilding Financial Multifamily Lennar Total Cash and cash equivalents $ 6,273,724 159,491 39,334 1,948 6,474,497 Restricted cash 13,481 82,960 — — 96,441 Receivables, net (1) 887,992 716,071 92,142 — 1,696,205 Inventory owned and consolidated inventory not owned 18,352,735 — 544,935 — 18,897,670 Loans held-for-sale (2) — 2,086,809 — — 2,086,809 Investments in equity securities (3) — — — 297,243 297,243 Investments available-for-sale (4) — — — 37,953 37,953 Loans held-for-investment, net — 55,463 — — 55,463 Investments held-to-maturity — 140,676 — — 140,676 Deposits and pre-acquisition costs on real estate 2,002,154 — 32,063 — 2,034,217 Investments in unconsolidated entities 1,143,909 — 599,852 276,244 2,020,005 Goodwill 3,442,359 189,699 — — 3,632,058 Other assets 1,512,038 135,377 73,187 44,464 1,765,066 Total assets $ 33,628,392 3,566,546 1,381,513 657,852 39,234,303 Liabilities: Notes and other debts payable, net $ 2,816,482 2,163,805 3,741 — 4,984,028 Accounts payable, liabilities related to consolidated inventory not owned and other liabilities 6,911,512 283,234 274,436 79,127 7,548,309 Total liabilities $ 9,727,994 2,447,039 278,177 79,127 12,532,337 (1) Receivables, net for Financial Services primarily related to loans sold to investors for which the Company had not yet been paid as of February 29, 2024 and November 30, 2023, 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 $123.1 million and $121.0 million without readily available fair values as of February 29, 2024 and November 30, 2023, respectively. (4) Investments available-for-sale are carried at fair value with changes in fair value recorded as a component of accumulated other comprehensive income (loss) on the condensed consolidated balance sheet. Financial information relating to the Company’s segments was as follows: Three Months Ended (In thousands) February 29, 2024 February 28, 2023 Revenues: Homebuilding $ 6,930,991 6,156,305 Financial Services 249,720 182,981 Multifamily 129,677 143,523 Lennar Other 2,542 7,620 $ 7,312,930 6,490,429 Earnings (loss) before income taxes: Homebuilding $ 1,028,796 906,839 Financial Services 131,296 78,737 Multifamily (15,639) (21,601) Lennar Other (39,548) (39,757) Corporate and Unallocated (1) (174,119) (139,765) $ 930,786 784,453 (1) Corporate and unallocated consists primarily of corporate general and administrative expenses and charitable foundation contributions. The assets related to the Company’s homebuilding segments were as follows: February 29, 2024 November 30, 2023 (In thousands) East $ 6,827,717 6,563,568 Central 4,737,106 4,511,496 Texas 3,632,938 3,337,280 West 11,933,146 11,298,812 Other 1,544,543 1,511,541 Corporate and Unallocated 5,090,117 6,405,695 Total Homebuilding $ 33,765,567 33,628,392 Financial information relating to the Company’s homebuilding segments was as follows: Three Months Ended (In thousands) February 29, 2024 February 28, 2023 Revenues East $ 1,922,797 1,697,843 Central 1,396,455 1,226,141 Texas 1,071,786 1,022,052 West 2,530,061 2,205,061 Other 9,892 5,208 $ 6,930,991 6,156,305 Operating earnings (loss) East $ 376,881 398,432 Central 161,616 156,286 Texas 168,513 125,319 West 308,787 230,500 Other 12,999 (3,698) $ 1,028,796 906,839 |
Schedule of Line of Credit Facilities | At February 29, 2024, the Financial Services segment had warehouse facilities which were all 364-day repurchase facilities and were used to fund residential mortgages or commercial mortgages for LMF Commercial as follows: Maximum Aggregate Commitment (In thousands) Committed Amount Uncommitted Amount Total Residential facilities maturing: March 2024 (1) $ 500,000 — 500,000 April 2024 250,000 250,000 500,000 May 2024 600,000 — 600,000 June 2024 100,000 100,000 200,000 September 2024 100,000 100,000 200,000 Total residential facilities $ 1,550,000 450,000 2,000,000 LMF commercial facilities maturing: December 2024 200,000 — 200,000 January 2025 100,000 — 100,000 Total LMF commercial facilities $ 300,000 — 300,000 Total $ 2,300,000 (1) Subsequent to February 29, 2024, the maturity date was extended to June 2024. Borrowings and collateral under the facilities were as follows: (In thousands) February 29, 2024 November 30, 2023 Borrowings under the residential facilities $ 1,344,468 2,020,187 Collateral under the residential facilities 1,395,837 2,097,020 Borrowings under the LMF Commercial facilities 89,555 12,525 The maximum available borrowings on the Company's unsecured revolving credit facility (the “Credit Facility”) were as follows: (In thousands) February 29, 2024 Commitments - maturing in April 2024 $ 350,000 Commitments - maturing in May 2027 2,225,000 Total commitments $ 2,575,000 Accordion feature 425,000 Total maximum borrowings capacity $ 3,000,000 (In thousands) February 29, 2024 November 30, 2023 Performance letters of credit $ 1,526,220 1,404,541 Financial letters of credit 476,545 417,976 Surety bonds 4,596,432 4,508,428 Anticipated future costs primarily for site improvements related to performance surety bonds 2,588,531 2,499,680 |
Schedule of Loans Held for Sale | LMF Commercial originated commercial loans as follows: Three Months Ended (Dollars in thousands) February 29, 2024 February 28, 2023 Originations (1) $ 140,825 79,480 Sold 26,950 77,200 Securitizations 2 1 (1) During both the three months ended February 29, 2024 and February 28, 2023, the commercial loans originated were recorded as loans held-for-sale, which are held at fair value. |
Schedule of Commercial Mortgage-Backed Securities | Details related to Financial Services' CMBS were as follows: (Dollars in thousands) February 29, 2024 November 30, 2023 Carrying value $ 139,706 140,676 Outstanding debt, net of debt issuance costs 130,267 131,093 Incurred interest rate 3.4% 3.4% |
Schedule of Fair Value Inputs for Commercial Mortgage-Backed Securities | February 29, 2024 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 As of February 29, 2024 As of November 30, 2023 Unobservable inputs Mortgage prepayment rate 8% 8% Discount rate 13% 13% Delinquency rate 9% 9% The table below summarizes the most significant unobservable inputs used in the Company's discounted cash flow model to determine the fair value of its communities for which the Company recorded valuation adjustments: Three Months Ended February 29, 2024 Unobservable inputs Range Average selling price (1) $178,000 — 197,000 Absorption rate per quarter (homes) 10 — 13 Discount rate 20% (1) Represents the projected average selling price on future deliveries for communities in which the Company recorded valuation adjustments during the quarter ended February 29, 2024. |
Unrealized Gain (Loss) on Investments | The following is a detail of Lennar Other unrealized gains (losses) from mark-to-market adjustments on the Company's technology investments: Three Months Ended (In thousands) February 29, 2024 February 28, 2023 Blend Labs (BLND) $ 2,936 586 Hippo (HIPO) 16,449 6,632 Opendoor (OPEN) 1,315 (7,691) SmartRent (SMRT) (1,963) 1,305 Sonder (SOND) 51 (320) Sunnova (NOVA) (23,925) (24,466) Lennar Other unrealized losses from technology investments $ (5,137) (23,954) |
Investments in Unconsolidated_2
Investments in Unconsolidated Entities (Tables) | 3 Months Ended |
Feb. 29, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Entities | The investments in the Company's Homebuilding unconsolidated entities were as follows: (In thousands) February 29, 2024 November 30, 2023 Investments in unconsolidated entities (1) (2) $ 1,206,564 1,143,909 Underlying equity in unconsolidated entities' net assets (1) 1,473,819 1,436,239 (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 FivePoint. (2) Included in the Company's recorded investments in Homebuilding unconsolidated entities is the Company's 40% ownership of FivePoint. As of February 29, 2024 and November 30, 2023, the carrying amount of the Company's investment was $444.5 million and $422.2 million, respectively. In many instances, the Multifamily segment is appointed as the construction, development and property manager for its Multifamily unconsolidated entities and receives fees for performing this function. Each Multifamily real estate investment trust, JV and fund has unilateral decision making rights related to development and other sales activity through its executive committee or asset management committee. The Multifamily segment also provides general contractor services for construction of some of the rental properties owned by unconsolidated entities in which the Company has investments. In some situations, the Multifamily segment sells land to various joint ventures and funds. The details of the activity were as follows: Three Months Ended (In thousands) February 29, 2024 February 28, 2023 General contractor services, net of deferrals $ 101,635 125,402 General contractor costs 95,688 120,733 Management fee income, net of deferrals 16,042 18,121 Details of LMV I and LMV II as of and during the three months ended February 29, 2024 are included below: February 29, 2024 (In thousands) LMV I LMV II Lennar's carrying value of investments $ 185,262 261,305 Equity commitments 2,204,016 1,257,700 Equity commitments called 2,154,328 1,218,619 Lennar's equity commitments 504,016 381,000 Lennar's equity commitments called 500,381 368,170 Lennar's remaining commitments (1) 3,635 12,830 Distributions to Lennar during the three months ended February 29, 2024 — 208 (1) |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Feb. 29, 2024 | |
Equity [Abstract] | |
Schedule of Changes in Equity | The following tables reflect the changes in equity attributable to both Lennar Corporation and the noncontrolling interests of its consolidated subsidiaries in which it has less than a 100% ownership interest for the three months ended February 29, 2024 and February 28, 2023: Three Months Ended February 29, 2024 (In thousands) Total Class A Class B Additional Treasury Accumulated Other Comprehensive Income Retained Noncontrolling Balance at November 30, 2023 $ 26,701,966 25,848 3,660 5,570,009 (1,393,100) 4,879 22,369,368 121,302 Net earnings (including net earnings attributable to noncontrolling interests) 719,921 — — — — — 719,334 587 Employee stock and directors plans (83,473) 135 — (65) (83,543) — — — Purchases of treasury stock (511,557) — — — (511,557) — — — Amortization of restricted stock 87,680 — — 87,680 — — — — Cash dividends (139,387) — — — — — (139,387) — Receipts related to noncontrolling interests 5,796 — — — — — — 5,796 Payments related to noncontrolling interests (1,979) — — — — — — (1,979) Non-cash purchase or activity of noncontrolling interests, net (1,399) — — (5,788) — — — 4,389 Total other comprehensive income, net of tax 362 — — — — 362 — — Balance at February 29, 2024 $ 26,777,930 25,983 3,660 5,651,836 (1,988,200) 5,241 22,949,315 130,095 Three Months Ended February 28, 2023 (In thousands) Total Class A Class B Additional Treasury Accumulated Other Comprehensive Income Retained Noncontrolling Balance at November 30, 2022 $ 24,240,367 25,608 3,660 5,417,796 (210,389) 2,408 18,861,417 139,867 Net earnings (including net earnings attributable to noncontrolling interests) 599,308 — — — — — 596,534 2,774 Employee stock and directors plans (66,990) 226 — (189) (67,027) — — — Purchases of treasury stock (190,931) — — — (190,931) — — — Amortization of restricted stock 86,558 — — 86,558 — — — — Cash dividends (107,891) — — — — — (107,891) — Receipts related to noncontrolling interests 2,497 — — — — — — 2,497 Payments related to noncontrolling interests (21,256) — — — — — — (21,256) Non-cash purchase or activity of noncontrolling interests, net 12,774 — — (376) — — — 13,150 Total other comprehensive income, net of tax 851 — — — — 851 — — Balance at February 28, 2023 $ 24,555,287 25,834 3,660 5,503,789 (468,347) 3,259 19,350,060 137,032 Three Months Ended February 29, 2024 February 28, 2023 (Dollars in thousands, except price per share) Class A Class B Class A Class B Shares repurchased 3,026,128 373,872 1,446,205 553,795 Total purchase price $ 454,788 $ 51,637 $ 143,068 $ 46,105 Average price per share $ 150.29 $ 138.11 $ 98.93 $ 83.25 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Feb. 29, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Benefit (Provision) and Effective Tax Rate | The provision for income taxes and effective tax rate were as follows: Three Months Ended (Dollars in thousands) February 29, 2024 February 28, 2023 Provision for income taxes $210,865 185,145 Effective tax rate (1) 22.7% 23.7% (1) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Feb. 29, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator In Earnings Per Share | Basic and diluted earnings per share were calculated as follows: Three Months Ended (In thousands, except per share amounts) February 29, 2024 February 28, 2023 Numerator: Net earnings attributable to Lennar $ 719,334 596,534 Less: distributed earnings allocated to nonvested shares 1,023 724 Less: undistributed earnings allocated to nonvested shares 5,877 5,895 Numerator for basic earnings per share 712,434 589,915 Less: net amount attributable to Rialto's Carried Interest Incentive Plan (1) — 1,038 Numerator for diluted earnings per share $ 712,434 588,877 Denominator: Denominator for basic earnings per share - weighted average common shares outstanding 276,946 286,074 Denominator for diluted earnings per share - weighted average common shares outstanding 276,946 286,074 Basic earnings per share $ 2.57 2.06 Diluted earnings per share $ 2.57 2.06 (1) The amount presented relate to Rialto's Carried Interest Incentive Plan and represents the difference between the advanced tax distributions received from the Rialto funds included in the Lennar Other segment and the amount Lennar is assumed to own. |
Homebuilding Senior Notes and_2
Homebuilding Senior Notes and Other Debts Payable (Tables) | 3 Months Ended |
Feb. 29, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Senior Notes and Other Debts Payable | (Dollars in thousands) February 29, 2024 November 30, 2023 4.50% senior notes due 2024 $ 453,792 453,682 4.75% senior notes due 2025 499,447 499,336 5.25% senior notes due 2026 402,737 403,040 5.00% senior notes due 2027 351,261 351,357 4.75% senior notes due 2027 797,513 797,347 Mortgage notes on land and other debt 325,582 311,720 $ 2,830,332 2,816,482 |
Schedule of Letter of Credit Facilities | At February 29, 2024, the Financial Services segment had warehouse facilities which were all 364-day repurchase facilities and were used to fund residential mortgages or commercial mortgages for LMF Commercial as follows: Maximum Aggregate Commitment (In thousands) Committed Amount Uncommitted Amount Total Residential facilities maturing: March 2024 (1) $ 500,000 — 500,000 April 2024 250,000 250,000 500,000 May 2024 600,000 — 600,000 June 2024 100,000 100,000 200,000 September 2024 100,000 100,000 200,000 Total residential facilities $ 1,550,000 450,000 2,000,000 LMF commercial facilities maturing: December 2024 200,000 — 200,000 January 2025 100,000 — 100,000 Total LMF commercial facilities $ 300,000 — 300,000 Total $ 2,300,000 (1) Subsequent to February 29, 2024, the maturity date was extended to June 2024. Borrowings and collateral under the facilities were as follows: (In thousands) February 29, 2024 November 30, 2023 Borrowings under the residential facilities $ 1,344,468 2,020,187 Collateral under the residential facilities 1,395,837 2,097,020 Borrowings under the LMF Commercial facilities 89,555 12,525 The maximum available borrowings on the Company's unsecured revolving credit facility (the “Credit Facility”) were as follows: (In thousands) February 29, 2024 Commitments - maturing in April 2024 $ 350,000 Commitments - maturing in May 2027 2,225,000 Total commitments $ 2,575,000 Accordion feature 425,000 Total maximum borrowings capacity $ 3,000,000 (In thousands) February 29, 2024 November 30, 2023 Performance letters of credit $ 1,526,220 1,404,541 Financial letters of credit 476,545 417,976 Surety bonds 4,596,432 4,508,428 Anticipated future costs primarily for site improvements related to performance surety bonds 2,588,531 2,499,680 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Disclosures (Tables) | 3 Months Ended |
Feb. 29, 2024 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts And Estimated Fair Value Of Financial Instruments | The following table presents the carrying amounts and estimated fair values of financial instruments held or issued by the Company at February 29, 2024 and November 30, 2023, using available market information and what the Company believes to be appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies might have a material effect on the estimated fair value amounts. The table excludes cash and cash equivalents, restricted cash, receivables, net and accounts payable, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments. February 29, 2024 November 30, 2023 (In thousands) Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value ASSETS Financial Services: Loans held-for-investment, net Level 3 $ 56,845 56,845 55,463 55,463 Investments held-to-maturity Level 3 139,706 140,886 140,676 139,396 LIABILITIES Homebuilding senior notes and other debts payable, net Level 2 $ 2,830,332 2,808,473 2,816,482 2,785,712 Financial Services notes and other debts payable, net Level 2 1,564,290 1,564,710 2,163,805 2,164,441 Multifamily notes payable, net Level 2 — — 3,741 3,741 |
Fair Value Measured On Recurring Basis | The Company’s financial instruments measured at fair value on a recurring basis are summarized below: Fair Value Hierarchy Fair Value at (In thousands) February 29, 2024 November 30, 2023 Financial Services Assets: Residential loans held-for-sale Level 2 $ 1,861,318 2,073,350 LMF Commercial loans held-for-sale Level 3 125,397 13,459 Mortgage servicing rights Level 3 3,475 3,440 Forward options Level 1 4,319 5,937 Lennar Other Assets: Investments in equity securities Level 1 $ 171,137 176,198 Investments available-for-sale Level 3 38,315 37,953 Residential and LMF Commercial loans held-for-sale in the table above include: February 29, 2024 November 30, 2023 (In thousands) Aggregate Principal Balance Change in Fair Value Aggregate Principal Balance Change in Fair Value Residential loans held-for-sale $ 1,917,795 (56,477) 2,083,776 (10,426) LMF Commercial loans held-for-sale 127,525 (2,128) 13,650 (191) |
Schedule of Unobservable Inputs Used in Discounted Cash Flow Model to Determine the Fair Value of Communities | February 29, 2024 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 As of February 29, 2024 As of November 30, 2023 Unobservable inputs Mortgage prepayment rate 8% 8% Discount rate 13% 13% Delinquency rate 9% 9% The table below summarizes the most significant unobservable inputs used in the Company's discounted cash flow model to determine the fair value of its communities for which the Company recorded valuation adjustments: Three Months Ended February 29, 2024 Unobservable inputs Range Average selling price (1) $178,000 — 197,000 Absorption rate per quarter (homes) 10 — 13 Discount rate 20% (1) Represents the projected average selling price on future deliveries for communities in which the Company recorded valuation adjustments during the quarter ended February 29, 2024. |
Schedule Of Gains And Losses Of Financial Instruments Measured on a Recurring Basis | The changes in fair values for Level 1 and Level 2 financial instruments measured on a recurring basis are shown below by financial instrument and financial statement line item: Three Months Ended (In thousands) February 29, 2024 February 28, 2023 Changes in fair value included in Financial Services revenues: Loans held-for-sale $ (46,052) (31,462) Mortgage loan commitments (30,655) (48,844) Forward contracts 101,846 91,509 Forward options (344) (852) Changes in fair value included in Lennar Other unrealized losses from technology investments: Investments in equity securities $ (5,137) (23,954) Changes in fair value included in other comprehensive income, net of tax: Lennar Other investments available-for-sale $ 362 851 |
Reconciliation Of Beginning And Ending Balance For The Company's Level 3 Recurring Fair Value Measurements | The following table sets forth the reconciliation of the beginning and ending balance for the Level 3 recurring fair value measurements in the Company's Financial Services segment: Three Months Ended February 29, 2024 February 28, 2023 (In thousands) Mortgage servicing rights LMF Commercial loans held-for-sale Mortgage servicing rights LMF Commercial loans held-for-sale Beginning balance $ 3,440 13,459 3,463 25,599 Purchases/loan originations 61 140,825 51 79,480 Sales/loan originations sold, including those not settled — (26,950) — (77,200) Disposals/settlements (26) — (63) — Changes in fair value (1) — (2,128) (1) (445) Interest and principal paydowns — 191 — (1,599) Ending balance $ 3,475 125,397 3,450 25,835 (1) Changes in fair value for LMF Commercial loans held-for-sale and Financial Services mortgage servicing rights are included in Financial Services' revenues. |
Fair Value Measurements, Nonrecurring | The assets measured at fair value on a nonrecurring basis are summarized below: Three Months Ended February 29, 2024 February 28, 2023 (In thousands) Fair Value Carrying Value Fair Value Total Losses, Net (1) Carrying Value Fair Value Total Losses, Net (1) Non-financial assets - Homebuilding: Finished homes and construction in progress (2) Level 3 $ 71,756 68,017 (3,739) 164,544 158,237 (6,307) Land and land under development (2) Level 3 2,870 — (2,870) 39,616 23,142 (16,474) Investments in unconsolidated entities (3) Level 3 — — — 3,065 — (3,065) (1) Represents losses due to valuation adjustments and deposit and pre-acquisition write-offs recorded during the respective periods. (2) Valuation adjustments for finished homes and construction in progress, and land and land under development were included in Homebuilding costs and expenses. During the three months ended February 29, 2024 and February 28, 2023, total losses, net, for land and land under development included $2.9 million and $14.5 million, respectively, of deposit and pre-acquisition cost write-offs. (3) Valuation adjustments related to investments in unconsolidated entities were primarily included in Homebuilding other income (expense), net in the Company's condensed consolidated statements of operations and comprehensive income for the three months ended February 28, 2023. Communities with valuation adjustments At or for the Three Months Ended # of active communities # of communities with potential indicator of impairment # of communities Fair Value (in thousands) Valuation Adjustments (in thousands) February 29, 2024 1,227 31 2 $ 4,863 $ (1,521) February 28, 2023 1,210 27 — — — |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Feb. 29, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Estimated Maximum Exposure To Loss | The Company’s recorded investments in VIEs that are unconsolidated and related estimated maximum exposure to loss were as follows: February 29, 2024 November 30, 2023 (In thousands) Investments in Lennar’s Maximum Investments in Lennar’s Maximum Homebuilding (1) $ 706,374 826,038 659,224 787,226 Multifamily (2) 388,109 406,710 384,718 402,735 Financial Services (3) 139,706 139,706 140,676 140,676 Lennar Other (4) 74,019 74,019 56,009 56,009 $ 1,308,208 1,446,473 1,240,627 1,386,646 (1) As of February 29, 2024 and November 30, 2023, the Company's maximum exposure to loss of Homebuilding's investments in unconsolidated VIEs was limited to its investments in unconsolidated VIEs, except with regard to the Company's remaining commitment to fund capital in Upward America of $68.8 million and $69.8 million, respectively. In addition, as of February 29, 2024 and November 30, 2023, there was recourse debt of a VIE of $42.0 million and $42.1 million, respectively. (2) As of February 29, 2024 and November 30, 2023, the Company's maximum exposure to loss of Multifamily's investments in unconsolidated VIEs was primarily limited to its investments in the unconsolidated VIEs. The maximum exposure for LMV II, in addition to the investment, also included the remaining combined equity commitment of $12.8 million as of both February 29, 2024 and November 30, 2023 for future expenditures related to the construction and development of its projects. (3) As of both February 29, 2024 and November 30, 2023, the Company's maximum exposure to loss of the Financial Services segment was limited to its investment in the unconsolidated VIEs and related to the Financial Services' CMBS investments held-to-maturity. (4) At February 29, 2024, the Company's maximum recourse exposure to loss of the Lennar Other segment was limited to its investments in the unconsolidated VIEs. The Company's exposure to losses on its option contracts with third parties and unconsolidated entities was as follows: (Dollars in thousands) February 29, 2024 November 30, 2023 Non-refundable option deposits and pre-acquisition costs $ 2,325,346 1,949,219 Non-refundable option deposits included in consolidated inventory not owned 504,033 451,632 Letters of credit in lieu of cash deposits under certain land and option contracts 226,816 198,920 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Feb. 29, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Reserve | The activity in the Company’s warranty reserve, which is included in Homebuilding other liabilities, was as follows: Three Months Ended (In thousands) February 29, 2024 February 28, 2023 Warranty reserve, beginning of the period $ 414,796 418,017 Warranties issued 61,776 53,679 Adjustments to pre-existing warranties from changes in estimates (1) (2,904) (4,058) Payments (68,110) (64,304) Warranty reserve, end of period $ 405,558 403,334 (1) The adjustments to pre-existing warranties from changes in estimates during the three months ended February 29, 2024 and February 28, 2023 primarily related to specific claims in certain of the Company's homebuilding communities and other adjustments. |
Additional Information About Leases | The following table includes additional information about the Company's leases: (Dollars in thousands) February 29, 2024 November 30, 2023 Right-of-use assets $ 104,784 145,812 Lease liabilities 112,671 154,271 Weighted-average remaining lease term (in years) 5.0 7.5 Weighted-average discount rate 3.8% 3.4% |
Lease, Cost | The Company's rental expense on lease liabilities were as follows: Three Months Ended (In thousands) February 29, 2024 February 28, 2023 Rental expense $ 26,217 26,904 |
Future Minimum Payments Under Noncancellable Leases | Future minimum payments under the noncancellable leases in effect at February 29, 2024 were as follows: (In thousands) Lease Payments 2024 $ 22,939 2025 27,790 2026 22,092 2027 17,418 2028 and thereafter 34,262 Total future minimum lease payments (1) $ 124,501 Less: Interest (2) 11,830 Present value of lease liabilities (2) $ 112,671 (1) Total future minimum lease payments exclude variable lease costs of $15.3 million and short-term lease costs of $2.4 million. (2) The Company's leases do not include a readily determinable implicit rate. As such, the Company has estimated the discount rate for these leases to determine the present value of lease payments at the lease commencement date or as of December 1, 2019, which was the effective date of ASU 2016-02. The Company recognized the lease liabilities on its condensed consolidated balance sheets within accounts payable and other liabilities of the respective segments. |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Nov. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash and cash equivalents held in escrow | $ 512 | $ 594.8 | |
Cash and cash equivalents held in escrow, deposit period | 2 days | ||
Nonvested shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Nonvested shares granted (in shares) | 1.2 | 1.6 |
Operating and Reporting Segme_3
Operating and Reporting Segments (Disclosure Of Assets and Liabilities) (Details) - USD ($) $ in Thousands | Feb. 29, 2024 | Nov. 30, 2023 | Feb. 28, 2023 | |
Segment Reporting Information [Line Items] | ||||
Total assets | [1] | $ 38,951,199 | $ 39,234,303 | |
Total liabilities | [2] | 12,173,269 | 12,532,337 | |
Equity securities without readily determinable fair values | 123,100 | 121,000 | ||
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 5,213,765 | 6,474,497 | ||
Restricted cash | 47,703 | 96,441 | ||
Receivables, net | 1,284,692 | 1,696,205 | ||
Inventory owned and consolidated inventory not owned | 19,942,759 | 18,897,670 | ||
Loans held-for-sale | 1,986,715 | 2,086,809 | ||
Investments in equity securities | 294,246 | 297,243 | ||
Investments available-for-sale | 38,315 | 37,953 | ||
Loans held-for-investment, net | 56,845 | 55,463 | ||
Investments held-to-maturity | 139,706 | 140,676 | ||
Deposits and pre-acquisition costs on real estate | 2,440,662 | 2,034,217 | ||
Investments in unconsolidated entities | 2,082,693 | 2,020,005 | ||
Goodwill | 3,632,058 | 3,632,058 | ||
Other assets | 1,791,040 | 1,765,066 | ||
Senior notes and other debts payable, net | 4,394,622 | 4,984,028 | ||
Accounts payable, liabilities related to consolidated inventory not owned and other liabilities | 7,778,647 | 7,548,309 | ||
Homebuilding | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | [1] | 4,950,128 | 6,273,724 | |
Restricted cash | [1] | 12,635 | 13,481 | |
Receivables, net | [1] | 897,371 | 887,992 | |
Inventory owned and consolidated inventory not owned | [1] | 19,374,070 | 18,352,735 | |
Deposits and pre-acquisition costs on real estate | 2,408,877 | 2,002,154 | ||
Investments in unconsolidated entities | [1] | 1,206,564 | 1,143,909 | |
Goodwill | [1] | 3,442,359 | 3,442,359 | |
Other assets | [1] | 1,473,563 | 1,512,038 | |
Total assets | [1] | 33,765,567 | 33,628,392 | |
Senior notes and other debts payable, net | [2] | 2,830,332 | 2,816,482 | |
Total liabilities | [2] | 10,128,947 | 9,727,994 | |
Homebuilding | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 4,950,128 | 6,273,724 | $ 4,057,956 | |
Restricted cash | 12,635 | 13,481 | 22,504 | |
Receivables, net | 897,371 | 887,992 | ||
Inventory owned and consolidated inventory not owned | 19,374,070 | 18,352,735 | ||
Loans held-for-sale | 0 | 0 | ||
Investments in equity securities | 0 | 0 | ||
Investments available-for-sale | 0 | 0 | ||
Loans held-for-investment, net | 0 | 0 | ||
Investments held-to-maturity | 0 | 0 | ||
Deposits and pre-acquisition costs on real estate | 2,408,877 | 2,002,154 | ||
Investments in unconsolidated entities | 1,206,564 | 1,143,909 | ||
Goodwill | 3,442,359 | 3,442,359 | ||
Other assets | 1,473,563 | 1,512,038 | ||
Total assets | 33,765,567 | 33,628,392 | ||
Senior notes and other debts payable, net | 2,830,332 | 2,816,482 | ||
Accounts payable, liabilities related to consolidated inventory not owned and other liabilities | 7,298,615 | 6,911,512 | ||
Total liabilities | 10,128,947 | 9,727,994 | ||
Lennar Financial Services | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | [1] | 3,056,442 | 3,566,546 | |
Total liabilities | [2] | 1,721,333 | 2,447,039 | |
Lennar Financial Services | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 233,846 | 159,491 | 163,000 | |
Restricted cash | 35,068 | 82,960 | 8,797 | |
Receivables, net | 304,716 | 716,071 | ||
Inventory owned and consolidated inventory not owned | 0 | 0 | ||
Loans held-for-sale | 1,986,715 | 2,086,809 | ||
Investments in equity securities | 0 | 0 | ||
Investments available-for-sale | 0 | 0 | ||
Loans held-for-investment, net | 56,845 | 55,463 | ||
Investments held-to-maturity | 139,706 | 140,676 | ||
Deposits and pre-acquisition costs on real estate | 0 | 0 | ||
Investments in unconsolidated entities | 0 | 0 | ||
Goodwill | 189,699 | 189,699 | ||
Other assets | 109,847 | 135,377 | ||
Total assets | 3,056,442 | 3,566,546 | ||
Senior notes and other debts payable, net | 1,564,290 | 2,163,805 | ||
Accounts payable, liabilities related to consolidated inventory not owned and other liabilities | 157,043 | 283,234 | ||
Total liabilities | 1,721,333 | 2,447,039 | ||
Multifamily | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | [1] | 1,379,279 | 1,381,513 | |
Total liabilities | [2] | 249,625 | 278,177 | |
Multifamily | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 27,091 | 39,334 | 15,075 | |
Restricted cash | 0 | 0 | ||
Receivables, net | 82,605 | 92,142 | ||
Inventory owned and consolidated inventory not owned | 568,689 | 544,935 | ||
Loans held-for-sale | 0 | 0 | ||
Investments in equity securities | 0 | 0 | ||
Investments available-for-sale | 0 | 0 | ||
Loans held-for-investment, net | 0 | 0 | ||
Investments held-to-maturity | 0 | 0 | ||
Deposits and pre-acquisition costs on real estate | 31,785 | 32,063 | ||
Investments in unconsolidated entities | 586,438 | 599,852 | ||
Goodwill | 0 | 0 | ||
Other assets | 82,671 | 73,187 | ||
Total assets | 1,379,279 | 1,381,513 | ||
Senior notes and other debts payable, net | 0 | 3,741 | ||
Accounts payable, liabilities related to consolidated inventory not owned and other liabilities | 249,625 | 274,436 | ||
Total liabilities | 249,625 | 278,177 | ||
Lennar Other | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | [1] | 749,911 | 657,852 | |
Total liabilities | [2] | 73,364 | 79,127 | |
Lennar Other | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 2,700 | 1,948 | $ 6,825 | |
Restricted cash | 0 | 0 | ||
Receivables, net | 0 | 0 | ||
Inventory owned and consolidated inventory not owned | 0 | 0 | ||
Loans held-for-sale | 0 | 0 | ||
Investments in equity securities | 294,246 | 297,243 | ||
Investments available-for-sale | 38,315 | 37,953 | ||
Loans held-for-investment, net | 0 | 0 | ||
Investments held-to-maturity | 0 | 0 | ||
Deposits and pre-acquisition costs on real estate | 0 | 0 | ||
Investments in unconsolidated entities | 289,691 | 276,244 | ||
Goodwill | 0 | 0 | ||
Other assets | 124,959 | 44,464 | ||
Total assets | 749,911 | 657,852 | ||
Senior notes and other debts payable, net | 0 | 0 | ||
Accounts payable, liabilities related to consolidated inventory not owned and other liabilities | 73,364 | 79,127 | ||
Total liabilities | $ 73,364 | $ 79,127 | ||
[1] Under certain provisions of Accounting Standards Codification (“ASC”) Topic 810, Consolidations (“ASC 810”), the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities (“VIEs”) and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations. As of February 29, 2024, total assets include $2.7 billion related to consolidated VIEs of which $40.8 million is included in Homebuilding cash and cash equivalents, $2.0 million in Homebuilding receivables, net, $9.8 million in Homebuilding finished homes and construction in progress, $633.4 million in Homebuilding land and land under development, $67.1 million in Homebuilding deposits and pre-acquisition costs on real estate, $1.9 billion in Homebuilding consolidated inventory not owned, $0.3 million in Homebuilding investments in unconsolidated entities, $26.7 million in Homebuilding other assets and $33.1 million in Multifamily assets. As of November 30, 2023, total assets include $1.9 billion related to consolidated VIEs of which $22.8 million is included in Homebuilding cash and cash equivalents, $1.8 million in Homebuilding receivables, net, $18.3 million in Homebuilding finished homes and construction in progress, $628.0 million in Homebuilding land and land under development, $55.0 million in Homebuilding deposits and pre-acquisition costs on real estate, $1.2 billion in Homebuilding consolidated inventory not owned, $0.3 million in Homebuilding investments in unconsolidated entities, $23.0 million in Homebuilding other assets and $32.6 million in Multifamily assets. As of February 29, 2024, total liabilities include $1.8 billion related to consolidated VIEs as to which there was no recourse against the Company, of which $17.7 million is included in Homebuilding accounts payable, $1.7 billion in Homebuilding liabilities related to consolidated inventory not owned, $6.0 million in Homebuilding senior notes and other debts payable, $88.5 million in Homebuilding other liabilities, and $0.9 million in Multifamily liabilities. As of November 30, 2023, total liabilities include $1.2 billion related to consolidated VIEs as to which there was no recourse against the Company, of which $53.7 million is included in Homebuilding accounts payable, $1.1 billion in Homebuilding liabilities related to consolidated inventory not owned, $38.1 million in Homebuilding other liabilities, and $4.1 million in Multifamily liabilities. |
Operating and Reporting Segme_4
Operating and Reporting Segments (Financial Information Related to Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 29, 2024 | Feb. 28, 2023 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 7,312,930 | $ 6,490,429 |
Operating Segments And Corporate | ||
Segment Reporting Information [Line Items] | ||
Operating earnings (loss) | 930,786 | 784,453 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 7,312,930 | 6,490,429 |
Operating Segments | Homebuilding | ||
Segment Reporting Information [Line Items] | ||
Revenues | 6,930,991 | 6,156,305 |
Operating earnings (loss) | 1,028,796 | 906,839 |
Operating Segments | Lennar Financial Services | ||
Segment Reporting Information [Line Items] | ||
Revenues | 249,720 | 182,981 |
Operating earnings (loss) | 131,296 | 78,737 |
Operating Segments | Multifamily | ||
Segment Reporting Information [Line Items] | ||
Revenues | 129,677 | 143,523 |
Operating earnings (loss) | (15,639) | (21,601) |
Operating Segments | Lennar Other | ||
Segment Reporting Information [Line Items] | ||
Revenues | 2,542 | 7,620 |
Operating earnings (loss) | (39,548) | (39,757) |
Corporate and Unallocated | ||
Segment Reporting Information [Line Items] | ||
Operating earnings (loss) | $ (174,119) | $ (139,765) |
Operating and Reporting Segme_5
Operating and Reporting Segments (Homebuilding Assets) (Details) - USD ($) $ in Thousands | Feb. 29, 2024 | Nov. 30, 2023 | |
Segment Reporting Information [Line Items] | |||
Assets | [1] | $ 38,951,199 | $ 39,234,303 |
Homebuilding | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 33,765,567 | 33,628,392 |
Operating Segments | Homebuilding | |||
Segment Reporting Information [Line Items] | |||
Assets | 33,765,567 | 33,628,392 | |
Operating Segments | East | |||
Segment Reporting Information [Line Items] | |||
Assets | 6,827,717 | 6,563,568 | |
Operating Segments | Central | |||
Segment Reporting Information [Line Items] | |||
Assets | 4,737,106 | 4,511,496 | |
Operating Segments | Texas | |||
Segment Reporting Information [Line Items] | |||
Assets | 3,632,938 | 3,337,280 | |
Operating Segments | West | |||
Segment Reporting Information [Line Items] | |||
Assets | 11,933,146 | 11,298,812 | |
Operating Segments | Other | |||
Segment Reporting Information [Line Items] | |||
Assets | 1,544,543 | 1,511,541 | |
Corporate and Unallocated | |||
Segment Reporting Information [Line Items] | |||
Assets | $ 5,090,117 | $ 6,405,695 | |
[1] Under certain provisions of Accounting Standards Codification (“ASC”) Topic 810, Consolidations (“ASC 810”), the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities (“VIEs”) and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations. As of February 29, 2024, total assets include $2.7 billion related to consolidated VIEs of which $40.8 million is included in Homebuilding cash and cash equivalents, $2.0 million in Homebuilding receivables, net, $9.8 million in Homebuilding finished homes and construction in progress, $633.4 million in Homebuilding land and land under development, $67.1 million in Homebuilding deposits and pre-acquisition costs on real estate, $1.9 billion in Homebuilding consolidated inventory not owned, $0.3 million in Homebuilding investments in unconsolidated entities, $26.7 million in Homebuilding other assets and $33.1 million in Multifamily assets. As of November 30, 2023, total assets include $1.9 billion related to consolidated VIEs of which $22.8 million is included in Homebuilding cash and cash equivalents, $1.8 million in Homebuilding receivables, net, $18.3 million in Homebuilding finished homes and construction in progress, $628.0 million in Homebuilding land and land under development, $55.0 million in Homebuilding deposits and pre-acquisition costs on real estate, $1.2 billion in Homebuilding consolidated inventory not owned, $0.3 million in Homebuilding investments in unconsolidated entities, $23.0 million in Homebuilding other assets and $32.6 million in Multifamily assets. |
Operating and Reporting Segme_6
Operating and Reporting Segments (Homebuilding Financial Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 29, 2024 | Feb. 28, 2023 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 7,312,930 | $ 6,490,429 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 7,312,930 | 6,490,429 |
Homebuilding | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 6,930,991 | 6,156,305 |
Operating earnings (loss) | 1,028,796 | 906,839 |
East | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,922,797 | 1,697,843 |
Operating earnings (loss) | 376,881 | 398,432 |
Central | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,396,455 | 1,226,141 |
Operating earnings (loss) | 161,616 | 156,286 |
Texas | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,071,786 | 1,022,052 |
Operating earnings (loss) | 168,513 | 125,319 |
West | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 2,530,061 | 2,205,061 |
Operating earnings (loss) | 308,787 | 230,500 |
Other | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 9,892 | 5,208 |
Operating earnings (loss) | $ 12,999 | $ (3,698) |
Operating and Reporting Segme_7
Operating and Reporting Segments (Disclosure of Facilities) (Details) - Lennar Financial Services - USD ($) | 3 Months Ended | |
Feb. 29, 2024 | Nov. 30, 2023 | |
Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 2,300,000,000 | |
Residential Warehouse Repurchase Facility | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 2,000,000,000 | |
Residential Warehouse Repurchase Facility | Warehouse Repurchase Facility | Committed | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 1,550,000,000 | |
Residential Warehouse Repurchase Facility | Warehouse Repurchase Facility | Uncommitted | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 450,000,000 | |
Residential Warehouse Repurchase Facility Extended to Due in June 2024 | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 500,000,000 | |
Residential Warehouse Repurchase Facility Extended to Due in June 2024 | Warehouse Repurchase Facility | Committed | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 500,000,000 | |
Residential Warehouse Repurchase Facility Extended to Due in June 2024 | Warehouse Repurchase Facility | Uncommitted | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 0 | |
Residential Warehouse Repurchase Facility Due in April 2024 | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 500,000,000 | |
Residential Warehouse Repurchase Facility Due in April 2024 | Warehouse Repurchase Facility | Committed | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 250,000,000 | |
Residential Warehouse Repurchase Facility Due in April 2024 | Warehouse Repurchase Facility | Uncommitted | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 250,000,000 | |
Residential Warehouse Repurchase Facility Due May 2024 | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 600,000,000 | |
Residential Warehouse Repurchase Facility Due June 2024 | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 200,000,000 | |
Residential Warehouse Repurchase Facility Due June 2024 | Warehouse Repurchase Facility | Committed | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 100,000,000 | |
Residential Warehouse Repurchase Facility Due June 2024 | Warehouse Repurchase Facility | Uncommitted | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 100,000,000 | |
Residential Warehouse Repurchase Facility Due September 2024 | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 200,000,000 | |
Residential Warehouse Repurchase Facility Due September 2024 | Warehouse Repurchase Facility | Committed | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 100,000,000 | |
Residential Warehouse Repurchase Facility Due September 2024 | Warehouse Repurchase Facility | Uncommitted | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 100,000,000 | |
Commercial facilities | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 300,000,000 | |
Commercial facilities | Warehouse Repurchase Facility | Committed | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 300,000,000 | |
Commercial Warehouse Repurchase Facility Due December 2024 | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 200,000,000 | |
Commercial Warehouse Repurchase Facility Due December 2024 | Warehouse Repurchase Facility | Committed | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 200,000,000 | |
Commercial Warehouse Repurchase Facility Due January 2025 | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 100,000,000 | |
Commercial Warehouse Repurchase Facility Due January 2025 | Warehouse Repurchase Facility | Committed | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 100,000,000 | |
Residential facilities | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Borrowings under facility | 1,344,468,000 | $ 2,020,187,000 |
Residential facilities | Warehouse Repurchase Facility | Asset Pledged as Collateral | ||
Line of Credit Facility [Line Items] | ||
Borrowings under facility | $ 1,395,837,000 | 2,097,020,000 |
Warehouse Repurchase Facility | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Facility, term | 364 days | |
Warehouse Repurchase Facility | Commercial facilities | ||
Line of Credit Facility [Line Items] | ||
Borrowings under facility | $ 89,555,000 | $ 12,525,000 |
Operating and Reporting Segme_8
Operating and Reporting Segments (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Nov. 30, 2023 | |
Doma Holdings, Inc | |||
Segment Reporting Information [Line Items] | |||
Unconsolidated entities ownership percentage | 25% | ||
Lennar Financial Services | Loss origination liability | |||
Segment Reporting Information [Line Items] | |||
Loan origination liabilities | $ 17,700,000 | $ 17,600,000 | |
Lennar Financial Services | Warehouse Repurchase Facility | |||
Segment Reporting Information [Line Items] | |||
Collateral percentage | 80% | ||
CMBS | Lennar Financial Services | |||
Segment Reporting Information [Line Items] | |||
Impairment charges for CMBS securities | $ 0 | $ 0 |
Operating and Reporting Segme_9
Operating and Reporting Segments (Loans Held-for-Sale) (Details) - Lennar Financial Services $ in Thousands | 3 Months Ended | |
Feb. 29, 2024 USD ($) transaction | Feb. 28, 2023 USD ($) transaction | |
Segment Reporting Information [Line Items] | ||
Originations | $ 140,825 | $ 79,480 |
Sold | $ 26,950 | $ 77,200 |
Securitizations | transaction | 2 | 1 |
Operating and Reporting Segm_10
Operating and Reporting Segments (Commercial Mortgage-Backed Securities) (Details) - Lennar Financial Services - USD ($) $ in Thousands | Feb. 29, 2024 | Nov. 30, 2023 |
Financing Agreement to Purchase Commercial Mortgage Backed Securities | Secured Debt | ||
Segment Reporting Information [Line Items] | ||
Outstanding debt, net of debt issuance costs | $ 130,267 | $ 131,093 |
Incurred interest rate | 3.40% | 3.40% |
CMBS | ||
Segment Reporting Information [Line Items] | ||
Investments held-to-maturity | $ 139,706 | $ 140,676 |
Operating and Reporting Segm_11
Operating and Reporting Segments (Fair Value Inputs for Commercial Mortgage-Backed Securities) (Details) - CMBS - Lennar Financial Services | 3 Months Ended |
Feb. 29, 2024 | |
Minimum | |
Segment Reporting Information [Line Items] | |
Discount rates at purchase | 6% |
Coupon rates | 2% |
Maximum | |
Segment Reporting Information [Line Items] | |
Discount rates at purchase | 84% |
Coupon rates | 5.30% |
Operating and Reporting Segm_12
Operating and Reporting Segments - Unrealized Gain (Loss) on Investments (Details) - Lennar Other - Operating Segments - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 29, 2024 | Feb. 28, 2023 | |
Segment Reporting Information [Line Items] | ||
Lennar Other unrealized losses from technology investments | $ (5,137) | $ (23,954) |
Blend Labs | ||
Segment Reporting Information [Line Items] | ||
Lennar Other unrealized losses from technology investments | 2,936 | 586 |
Hippo | ||
Segment Reporting Information [Line Items] | ||
Lennar Other unrealized losses from technology investments | 16,449 | 6,632 |
Opendoor | ||
Segment Reporting Information [Line Items] | ||
Lennar Other unrealized losses from technology investments | 1,315 | (7,691) |
SmartRent | ||
Segment Reporting Information [Line Items] | ||
Lennar Other unrealized losses from technology investments | (1,963) | 1,305 |
Sonder | ||
Segment Reporting Information [Line Items] | ||
Lennar Other unrealized losses from technology investments | 51 | (320) |
Sunnova | ||
Segment Reporting Information [Line Items] | ||
Lennar Other unrealized losses from technology investments | $ (23,925) | $ (24,466) |
Investments in Unconsolidated_3
Investments in Unconsolidated Entities (Homebuilding Unconsolidated Entities) (Details) - USD ($) $ in Thousands | Feb. 29, 2024 | Nov. 30, 2023 | |
FivePoint Unconsolidated Entity | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated entities | $ 444,500 | $ 422,200 | |
Unconsolidated entities ownership percentage | 40% | ||
Homebuilding | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated entities | [1] | $ 1,206,564 | 1,143,909 |
Underlying equity in unconsolidated partners' net assets | $ 1,473,819 | $ 1,436,239 | |
[1] Under certain provisions of Accounting Standards Codification (“ASC”) Topic 810, Consolidations (“ASC 810”), the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities (“VIEs”) and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations. As of February 29, 2024, total assets include $2.7 billion related to consolidated VIEs of which $40.8 million is included in Homebuilding cash and cash equivalents, $2.0 million in Homebuilding receivables, net, $9.8 million in Homebuilding finished homes and construction in progress, $633.4 million in Homebuilding land and land under development, $67.1 million in Homebuilding deposits and pre-acquisition costs on real estate, $1.9 billion in Homebuilding consolidated inventory not owned, $0.3 million in Homebuilding investments in unconsolidated entities, $26.7 million in Homebuilding other assets and $33.1 million in Multifamily assets. As of November 30, 2023, total assets include $1.9 billion related to consolidated VIEs of which $22.8 million is included in Homebuilding cash and cash equivalents, $1.8 million in Homebuilding receivables, net, $18.3 million in Homebuilding finished homes and construction in progress, $628.0 million in Homebuilding land and land under development, $55.0 million in Homebuilding deposits and pre-acquisition costs on real estate, $1.2 billion in Homebuilding consolidated inventory not owned, $0.3 million in Homebuilding investments in unconsolidated entities, $23.0 million in Homebuilding other assets and $32.6 million in Multifamily assets. |
Investments in Unconsolidated_4
Investments in Unconsolidated Entities (Narrative) (Details) - USD ($) $ in Thousands | Feb. 29, 2024 | Nov. 30, 2023 | |
Upward America Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Total equity commitments | $ 1,600,000 | ||
Upward America Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Total equity commitments | 125,000 | ||
Lennar's carrying value of investments | 11,200 | $ 14,800 | |
Homebuilding | |||
Schedule of Equity Method Investments [Line Items] | |||
Non-recourse debt with completion guarantees | 279,600 | 316,500 | |
Lennar's carrying value of investments | [1] | 1,206,564 | 1,143,909 |
Multifamily | |||
Schedule of Equity Method Investments [Line Items] | |||
Non-recourse debt with completion guarantees | 1,100,000 | 1,400,000 | |
Multifamily | Lennar Multifamily Fund | |||
Schedule of Equity Method Investments [Line Items] | |||
Total equity commitments | $ 1,000,000 | ||
Fund ownership percentage | 4% | ||
Lennar's carrying value of investments | $ 23,100 | ||
Lennar Other | Rialto Funds and Investment Vehicles | |||
Schedule of Equity Method Investments [Line Items] | |||
Lennar's carrying value of investments | 142,200 | 148,700 | |
Lennar Other | Strategic Technology Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Lennar's carrying value of investments | $ 147,500 | $ 127,500 | |
[1] Under certain provisions of Accounting Standards Codification (“ASC”) Topic 810, Consolidations (“ASC 810”), the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities (“VIEs”) and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations. As of February 29, 2024, total assets include $2.7 billion related to consolidated VIEs of which $40.8 million is included in Homebuilding cash and cash equivalents, $2.0 million in Homebuilding receivables, net, $9.8 million in Homebuilding finished homes and construction in progress, $633.4 million in Homebuilding land and land under development, $67.1 million in Homebuilding deposits and pre-acquisition costs on real estate, $1.9 billion in Homebuilding consolidated inventory not owned, $0.3 million in Homebuilding investments in unconsolidated entities, $26.7 million in Homebuilding other assets and $33.1 million in Multifamily assets. As of November 30, 2023, total assets include $1.9 billion related to consolidated VIEs of which $22.8 million is included in Homebuilding cash and cash equivalents, $1.8 million in Homebuilding receivables, net, $18.3 million in Homebuilding finished homes and construction in progress, $628.0 million in Homebuilding land and land under development, $55.0 million in Homebuilding deposits and pre-acquisition costs on real estate, $1.2 billion in Homebuilding consolidated inventory not owned, $0.3 million in Homebuilding investments in unconsolidated entities, $23.0 million in Homebuilding other assets and $32.6 million in Multifamily assets. |
Investments in Unconsolidated_5
Investments in Unconsolidated Entities (Multifamily Income and Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 29, 2024 | Feb. 28, 2023 | |
Schedule of Equity Method Investments [Line Items] | ||
Revenues | $ 7,312,930 | $ 6,490,429 |
General Contractor Services | Multifamily | Unconsolidated Entities | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenues | 101,635 | 125,402 |
Cost of revenue | 95,688 | 120,733 |
Management Fee | Multifamily | Unconsolidated Entities | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenues | $ 16,042 | $ 18,121 |
Investments in Unconsolidated_6
Investments in Unconsolidated Entities (Details of Multifamily Unconsolidated Entities) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 29, 2024 | Feb. 28, 2023 | |
Schedule of Equity Method Investments [Line Items] | ||
Distributions of earnings from unconsolidated entities | $ 8,422 | $ 4,623 |
Multifamily | LMV I | ||
Schedule of Equity Method Investments [Line Items] | ||
Lennar's carrying value of investments | 185,262 | |
Equity commitments | 2,204,016 | |
Equity commitments called | 2,154,328 | |
Lennar's equity commitments | 504,016 | |
Lennar's equity commitments called | 500,381 | |
Lennar's remaining commitments (1) | 3,635 | |
Distributions of earnings from unconsolidated entities | 0 | |
Multifamily | LMV II | ||
Schedule of Equity Method Investments [Line Items] | ||
Lennar's carrying value of investments | 261,305 | |
Equity commitments | 1,257,700 | |
Equity commitments called | 1,218,619 | |
Lennar's equity commitments | 381,000 | |
Lennar's equity commitments called | 368,170 | |
Lennar's remaining commitments (1) | 12,830 | |
Distributions of earnings from unconsolidated entities | $ 208 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule Of Changes In Equity) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||||||
Feb. 07, 2024 | Jan. 31, 2024 | Feb. 29, 2024 | Nov. 30, 2023 | Feb. 28, 2023 | Mar. 31, 2022 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance, beginning | $ 26,701,966,000 | [1] | $ 24,240,367,000 | |||||
Net earnings (including net earnings attributable to noncontrolling interests) | 719,921,000 | 599,308,000 | ||||||
Employee stock and directors plans | (83,473,000) | (66,990,000) | ||||||
Purchases of treasury stock | (511,557,000) | (190,931,000) | ||||||
Amortization of restricted stock | 87,680,000 | 86,558,000 | ||||||
Cash dividends | (139,387,000) | (107,891,000) | ||||||
Receipts related to noncontrolling interests | 5,796,000 | 2,497,000 | ||||||
Payments related to noncontrolling interests | (1,979,000) | (21,256,000) | ||||||
Non-cash purchase or activity of noncontrolling interests, net | (1,399,000) | 12,774,000 | ||||||
Total other comprehensive income, net of tax | 362,000 | 851,000 | ||||||
Balance, ending | 26,777,930,000 | [1] | $ 26,701,966,000 | [1] | 24,555,287,000 | |||
Cash dividend paid (in dollars per share) | $ 0.50 | |||||||
Stock repurchase program, authorized value | $ 2,000,000,000 | |||||||
Stock repurchase program, authorized shares (in shares) | 30,000,000 | |||||||
Additional shares authorized for repurchase, amount | $ 5,000,000,000 | |||||||
Additional Paid - in Capital | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance, beginning | 5,570,009,000 | 5,417,796,000 | ||||||
Employee stock and directors plans | (65,000) | (189,000) | ||||||
Amortization of restricted stock | 87,680,000 | 86,558,000 | ||||||
Non-cash purchase or activity of noncontrolling interests, net | (5,788,000) | (376,000) | ||||||
Balance, ending | 5,651,836,000 | 5,570,009,000 | 5,503,789,000 | |||||
Treasury Stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance, beginning | (1,393,100,000) | (210,389,000) | ||||||
Employee stock and directors plans | (83,543,000) | (67,027,000) | ||||||
Purchases of treasury stock | (511,557,000) | (190,931,000) | ||||||
Balance, ending | (1,988,200,000) | (1,393,100,000) | (468,347,000) | |||||
Accumulated Other Comprehensive Income | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance, beginning | 4,879,000 | 2,408,000 | ||||||
Total other comprehensive income, net of tax | 362,000 | 851,000 | ||||||
Balance, ending | 5,241,000 | 4,879,000 | 3,259,000 | |||||
Retained Earnings | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance, beginning | 22,369,368,000 | 18,861,417,000 | ||||||
Net earnings (including net earnings attributable to noncontrolling interests) | 719,334,000 | 596,534,000 | ||||||
Cash dividends | (139,387,000) | (107,891,000) | ||||||
Balance, ending | 22,949,315,000 | 22,369,368,000 | 19,350,060,000 | |||||
Noncontrolling Interests | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance, beginning | 121,302,000 | 139,867,000 | ||||||
Net earnings (including net earnings attributable to noncontrolling interests) | 587,000 | 2,774,000 | ||||||
Receipts related to noncontrolling interests | 5,796,000 | 2,497,000 | ||||||
Payments related to noncontrolling interests | (1,979,000) | (21,256,000) | ||||||
Non-cash purchase or activity of noncontrolling interests, net | 4,389,000 | 13,150,000 | ||||||
Balance, ending | $ 130,095,000 | $ 121,302,000 | $ 137,032,000 | |||||
Common Class A | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cash dividend declared (in dollars per share) | $ 0.375 | |||||||
Cash dividend paid (in dollars per share) | $ 0.375 | |||||||
Shares repurchased during period (in shares) | 3,026,128 | 1,446,205 | ||||||
Total purchase price | $ 454,788,000 | $ 143,068,000 | ||||||
Average share price of shares repurchased (in dollars per share) | $ 150.29 | $ 98.93 | ||||||
Common Class A | Common Stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance, beginning | $ 25,848,000 | $ 25,608,000 | ||||||
Employee stock and directors plans | 135,000 | 226,000 | ||||||
Balance, ending | $ 25,983,000 | $ 25,848,000 | $ 25,834,000 | |||||
Common Class B | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cash dividend declared (in dollars per share) | $ 0.375 | |||||||
Cash dividend paid (in dollars per share) | $ 0.375 | |||||||
Shares repurchased during period (in shares) | 373,872 | 553,795 | ||||||
Total purchase price | $ 51,637,000 | $ 46,105,000 | ||||||
Average share price of shares repurchased (in dollars per share) | $ 138.11 | $ 83.25 | ||||||
Common Class B | Common Stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Balance, beginning | $ 3,660,000 | $ 3,660,000 | ||||||
Balance, ending | $ 3,660,000 | $ 3,660,000 | $ 3,660,000 | |||||
[1] As of February 29, 2024, total liabilities include $1.8 billion related to consolidated VIEs as to which there was no recourse against the Company, of which $17.7 million is included in Homebuilding accounts payable, $1.7 billion in Homebuilding liabilities related to consolidated inventory not owned, $6.0 million in Homebuilding senior notes and other debts payable, $88.5 million in Homebuilding other liabilities, and $0.9 million in Multifamily liabilities. As of November 30, 2023, total liabilities include $1.2 billion related to consolidated VIEs as to which there was no recourse against the Company, of which $53.7 million is included in Homebuilding accounts payable, $1.1 billion in Homebuilding liabilities related to consolidated inventory not owned, $38.1 million in Homebuilding other liabilities, and $4.1 million in Multifamily liabilities. |
Income Taxes (Income Tax Benefi
Income Taxes (Income Tax Benefit (Provision) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 29, 2024 | Feb. 28, 2023 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 210,865 | $ 185,145 |
Effective tax rate | 22.70% | 23.70% |
Schedule of Basic and Diluted E
Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Feb. 29, 2024 | Feb. 28, 2023 | |
Numerator: | ||
Net earnings attributable to Lennar | $ 719,334 | $ 596,534 |
Less: distributed earnings allocated to nonvested shares | 1,023 | 724 |
Less: undistributed earnings allocated to nonvested shares | 5,877 | 5,895 |
Numerator for basic earnings per share | 712,434 | 589,915 |
Less: net amount attributable to noncontrolling interests in Rialto's Carried Interest Incentive Plan | 0 | 1,038 |
Numerator for diluted earnings per share | $ 712,434 | $ 588,877 |
Denominator: | ||
Denominator for basic earnings per share-weighted average common shares outstanding (shares) | 276,946 | 286,074 |
Denominator for diluted earnings per share-weighted average common shares outstanding (shares) | 276,946 | 286,074 |
Basic earnings per share (in dollars per share) | $ 2.57 | $ 2.06 |
Diluted earnings per share (in dollars per share) | $ 2.57 | $ 2.06 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | |
Feb. 29, 2024 | Feb. 28, 2023 | |
Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Options to purchase outstanding and anti-dilutive shares (in shares) | 0 | 0 |
Homebuilding Senior Notes and_3
Homebuilding Senior Notes and Other Debts Payable (Schedule of Senior Notes and Other Debts Payable) (Details) - Homebuilding - USD ($) $ in Thousands | Feb. 29, 2024 | Nov. 30, 2023 | |
Debt Instrument [Line Items] | |||
Senior notes and other debts payable, net | [1] | $ 2,830,332 | $ 2,816,482 |
Senior Notes | 4.50% senior notes due 2024 | |||
Debt Instrument [Line Items] | |||
Interest rate (percent) | 4.50% | ||
Senior notes and other debts payable, net | $ 453,792 | 453,682 | |
Senior Notes | 4.75% senior notes due 2025 | |||
Debt Instrument [Line Items] | |||
Interest rate (percent) | 4.75% | ||
Senior notes and other debts payable, net | $ 499,447 | 499,336 | |
Senior Notes | 5.25% senior notes due 2026 | |||
Debt Instrument [Line Items] | |||
Interest rate (percent) | 5.25% | ||
Senior notes and other debts payable, net | $ 402,737 | 403,040 | |
Senior Notes | 5.00% senior notes due 2027 | |||
Debt Instrument [Line Items] | |||
Interest rate (percent) | 5% | ||
Senior notes and other debts payable, net | $ 351,261 | 351,357 | |
Senior Notes | 4.75% senior notes due 2027 | |||
Debt Instrument [Line Items] | |||
Interest rate (percent) | 4.75% | ||
Senior notes and other debts payable, net | $ 797,513 | 797,347 | |
Mortgage notes on land and other debt | |||
Debt Instrument [Line Items] | |||
Senior notes and other debts payable, net | $ 325,582 | $ 311,720 | |
[1] As of February 29, 2024, total liabilities include $1.8 billion related to consolidated VIEs as to which there was no recourse against the Company, of which $17.7 million is included in Homebuilding accounts payable, $1.7 billion in Homebuilding liabilities related to consolidated inventory not owned, $6.0 million in Homebuilding senior notes and other debts payable, $88.5 million in Homebuilding other liabilities, and $0.9 million in Multifamily liabilities. As of November 30, 2023, total liabilities include $1.2 billion related to consolidated VIEs as to which there was no recourse against the Company, of which $53.7 million is included in Homebuilding accounts payable, $1.1 billion in Homebuilding liabilities related to consolidated inventory not owned, $38.1 million in Homebuilding other liabilities, and $4.1 million in Multifamily liabilities. |
Homebuilding Senior Notes and_4
Homebuilding Senior Notes and Other Debts Payable (Narrative) (Details) - Homebuilding - USD ($) | Feb. 29, 2024 | Nov. 30, 2023 |
Letter of Credit | ||
Debt Instrument [Line Items] | ||
Maximum borrowings | $ 500,000,000 | |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt issuance cost | $ 3,800,000 | $ 4,200,000 |
Homebuilding Senior Notes and_5
Homebuilding Senior Notes and Other Debts Payable (Credit Facility) (Details) - Unsecured revolving credit facility - Homebuilding | Feb. 29, 2024 USD ($) |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 2,575,000,000 |
Accordion feature | 425,000,000 |
Maximum borrowing capacity after accordion feature | 3,000,000,000 |
Commitments - maturing in April 2024 | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | 350,000,000 |
Commitments - maturing in May 2027 | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 2,225,000,000 |
Homebuilding Senior Notes and_6
Homebuilding Senior Notes and Other Debts Payable (Letter of Credit Facilities) (Details) - USD ($) $ in Thousands | Feb. 29, 2024 | Nov. 30, 2023 |
Performance letters of credit | ||
Line of Credit Facility [Line Items] | ||
Letters of credit | $ 1,526,220 | $ 1,404,541 |
Financial letters of credit | ||
Line of Credit Facility [Line Items] | ||
Letters of credit | 476,545 | 417,976 |
Surety bonds | ||
Line of Credit Facility [Line Items] | ||
Letters of credit | 4,596,432 | 4,508,428 |
Anticipated future costs primarily for site improvements related to performance surety bonds | ||
Line of Credit Facility [Line Items] | ||
Letters of credit | $ 2,588,531 | $ 2,499,680 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Disclosures - (Carrying Amounts And Estimated Fair Value Of Financial Instruments) (Details) - USD ($) $ in Thousands | Feb. 29, 2024 | Nov. 30, 2023 |
Lennar Financial Services | Level 3 | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans held-for-investment | $ 56,845 | $ 55,463 |
Investments held-to-maturity | 139,706 | 140,676 |
Lennar Financial Services | Level 3 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans held-for-investment | 56,845 | 55,463 |
Investments held-to-maturity | 140,886 | 139,396 |
Lennar Financial Services | Level 1 | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | 1,564,290 | 2,163,805 |
Lennar Financial Services | Level 1 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | 1,564,710 | 2,164,441 |
Homebuilding | Level 1 | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | 2,830,332 | 2,816,482 |
Homebuilding | Level 1 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | 2,808,473 | 2,785,712 |
Multifamily | Level 1 | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | 0 | 3,741 |
Multifamily | Level 1 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | $ 0 | $ 3,741 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Disclosures - (Fair Value Measured On Recurring Basis) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Feb. 29, 2024 | Nov. 30, 2023 |
Level 1 | Lennar Financial Services | Forward options | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Derivative asset | $ 4,319 | $ 5,937 |
Level 1 | Lennar Other | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Investments in equity securities | 171,137 | 176,198 |
Level 3 | Lennar Financial Services | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Mortgage servicing rights | 3,475 | 3,440 |
Level 3 | Lennar Other | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Investments available-for-sale | 38,315 | 37,953 |
Residential | Loans held-for-sale | Lennar Financial Services | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Aggregate principal balance | 1,917,795 | 2,083,776 |
Aggregate fair value of loans (below) in excess of principal balance | (56,477) | (10,426) |
Residential | Level 1 | Lennar Financial Services | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 1,861,318 | 2,073,350 |
Commercial | Loans held-for-sale | Lennar Financial Services | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Aggregate principal balance | 127,525 | 13,650 |
Aggregate fair value of loans (below) in excess of principal balance | (2,128) | (191) |
Commercial | Level 3 | Lennar Financial Services | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | $ 125,397 | $ 13,459 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Disclosures - (Mortgage Servicing Rights Unobservable Inputs) (Details) - Lennar Financial Services - Level 3 | Feb. 29, 2024 | Nov. 30, 2023 |
Mortgage prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs for valuation of mortgage servicing rights | 0.08 | 0.08 |
Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs for valuation of mortgage servicing rights | 0.13 | 0.13 |
Delinquency rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs for valuation of mortgage servicing rights | 0.09 | 0.09 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Disclosures - (Schedule Of Gains And Losses Of Financial Instruments) (Details) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 29, 2024 | Feb. 28, 2023 | |
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Changes in fair value included in other comprehensive income (loss), net of tax | $ 362 | $ 851 |
Fair Value, Measurements, Recurring | Lennar Financial Services | Loans held-for-sale | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Lennar Other unrealized losses from technology investments | (46,052) | (31,462) |
Fair Value, Measurements, Recurring | Lennar Financial Services | Mortgage loan commitments | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Lennar Other unrealized losses from technology investments | (30,655) | (48,844) |
Fair Value, Measurements, Recurring | Lennar Financial Services | Forward contracts | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Lennar Other unrealized losses from technology investments | 101,846 | 91,509 |
Fair Value, Measurements, Recurring | Lennar Financial Services | Forward options | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Lennar Other unrealized losses from technology investments | (344) | (852) |
Fair Value, Measurements, Recurring | Lennar Other | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Changes in fair value included in other comprehensive income (loss), net of tax | 362 | 851 |
Fair Value, Measurements, Recurring | Lennar Other | Equity Securities | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Lennar Other unrealized losses from technology investments | $ (5,137) | $ (23,954) |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Disclosures - (Reconciliation Of Beginning And Ending Balance For The Company's Level 3 Recurring Fair Value Measurements) (Details) - Lennar Financial Services - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 29, 2024 | Feb. 28, 2023 | |
Mortgage servicing rights | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 3,440 | $ 3,463 |
Purchases/loan originations | 61 | 51 |
Sales/loan originations sold, including those not settled | 0 | 0 |
Disposals/settlements | (26) | (63) |
Changes in fair value | 0 | (1) |
Interest and principal paydowns | 0 | 0 |
Ending balance | 3,475 | 3,450 |
LMF Commercial loans held-for-sale | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 13,459 | 25,599 |
Purchases/loan originations | 140,825 | 79,480 |
Sales/loan originations sold, including those not settled | (26,950) | (77,200) |
Disposals/settlements | 0 | 0 |
Changes in fair value | (2,128) | (445) |
Interest and principal paydowns | 191 | (1,599) |
Ending balance | $ 125,397 | $ 25,835 |
Financial Instruments and Fai_8
Financial Instruments and Fair Value Disclosures - (Fair Value Assets Measured On Nonrecurring Basis) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 29, 2024 | Feb. 28, 2023 | |
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Inventory Write-down | $ 1,521 | $ 0 |
Homebuilding | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Inventory Write-down | 2,900 | 14,500 |
Fair Value, Measurements, Nonrecurring | Level 3 | Homebuilding | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Finished homes and construction in progress, carrying value | 71,756 | 164,544 |
Finished homes and construction in progress, fair value | 68,017 | 158,237 |
Finished homes and construction in progress, total losses, net | (3,739) | (6,307) |
Land and land under development, carrying value | 2,870 | 39,616 |
Land and land under development, fair value | 0 | 23,142 |
Land and land under development, total losses, net | (2,870) | (16,474) |
Other assets, carrying value | 0 | 3,065 |
Other assets, fair value | 0 | 0 |
Other assets, total losses, net | $ 0 | $ (3,065) |
Financial Instruments and Fai_9
Financial Instruments and Fair Value Disclosures - (Narrative) (Details) - community | Feb. 29, 2024 | Feb. 28, 2023 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Active communities | 1,227 | 1,210 |
Financial Instruments and Fa_10
Financial Instruments and Fair Value Disclosures - (Communities with Indicators for Impairment) (Details) $ in Thousands | 3 Months Ended | |
Feb. 29, 2024 USD ($) community | Feb. 28, 2023 USD ($) community | |
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Active communities | 1,227 | 1,210 |
Number of Communities with potential indicator of impairment | 31 | 27 |
Number of communities with valuation adjustments | 2 | 0 |
Valuation adjustments | $ | $ (1,521) | $ 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Fair value of communities with valuation adjustments | $ | $ 4,863 | $ 0 |
Financial Instruments and Fa_11
Financial Instruments and Fair Value Disclosures - (Unobservable Inputs Used in Discounted Cash Flow Model to Determine the Fair Value of Communities) (Details) | Feb. 29, 2024 |
Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Unobservable inputs | 0.20 |
Minimum | Average selling price (1) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Unobservable inputs | 178,000 |
Minimum | Absorption rate per quarter (homes) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Unobservable inputs | 10 |
Maximum | Average selling price (1) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Unobservable inputs | 197,000,000 |
Maximum | Absorption rate per quarter (homes) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Unobservable inputs | 13 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 29, 2024 | Nov. 30, 2023 | ||
Variable Interest Entity [Line Items] | |||
Total liabilities | [1] | $ 12,173,269 | $ 12,532,337 |
Homebuilding | |||
Variable Interest Entity [Line Items] | |||
Total liabilities | [1] | 10,128,947 | 9,727,994 |
Consolidated inventory not owned | [2] | 3,547,921 | 2,992,528 |
Deposits and pre-acquisition costs on real estate | 2,408,877 | 2,002,154 | |
Liabilities related to consolidated inventory not owned | [1] | 3,043,888 | 2,540,894 |
Land Bank | Homebuilding | |||
Variable Interest Entity [Line Items] | |||
Consolidated inventory not owned | 886,200 | ||
Deposits and pre-acquisition costs on real estate | 669,900 | ||
Liabilities related to consolidated inventory not owned | 749,200 | ||
Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Increase in consolidated inventory | 555,400 | ||
Consolidated inventory not owned | 1,900,000 | ||
Consolidated inventory not owned, not recorded | 1,700,000 | ||
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Total liabilities | 1,800,000 | 1,200,000 | |
Variable Interest Entity, Primary Beneficiary | Homebuilding | |||
Variable Interest Entity [Line Items] | |||
Consolidated inventory not owned | 1,900,000 | 1,200,000 | |
Liabilities related to consolidated inventory not owned | $ 1,700,000 | $ 1,100,000 | |
[1] As of February 29, 2024, total liabilities include $1.8 billion related to consolidated VIEs as to which there was no recourse against the Company, of which $17.7 million is included in Homebuilding accounts payable, $1.7 billion in Homebuilding liabilities related to consolidated inventory not owned, $6.0 million in Homebuilding senior notes and other debts payable, $88.5 million in Homebuilding other liabilities, and $0.9 million in Multifamily liabilities. As of November 30, 2023, total liabilities include $1.2 billion related to consolidated VIEs as to which there was no recourse against the Company, of which $53.7 million is included in Homebuilding accounts payable, $1.1 billion in Homebuilding liabilities related to consolidated inventory not owned, $38.1 million in Homebuilding other liabilities, and $4.1 million in Multifamily liabilities. Under certain provisions of Accounting Standards Codification (“ASC”) Topic 810, Consolidations (“ASC 810”), the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities (“VIEs”) and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations. As of February 29, 2024, total assets include $2.7 billion related to consolidated VIEs of which $40.8 million is included in Homebuilding cash and cash equivalents, $2.0 million in Homebuilding receivables, net, $9.8 million in Homebuilding finished homes and construction in progress, $633.4 million in Homebuilding land and land under development, $67.1 million in Homebuilding deposits and pre-acquisition costs on real estate, $1.9 billion in Homebuilding consolidated inventory not owned, $0.3 million in Homebuilding investments in unconsolidated entities, $26.7 million in Homebuilding other assets and $33.1 million in Multifamily assets. As of November 30, 2023, total assets include $1.9 billion related to consolidated VIEs of which $22.8 million is included in Homebuilding cash and cash equivalents, $1.8 million in Homebuilding receivables, net, $18.3 million in Homebuilding finished homes and construction in progress, $628.0 million in Homebuilding land and land under development, $55.0 million in Homebuilding deposits and pre-acquisition costs on real estate, $1.2 billion in Homebuilding consolidated inventory not owned, $0.3 million in Homebuilding investments in unconsolidated entities, $23.0 million in Homebuilding other assets and $32.6 million in Multifamily assets. |
Variable Interest Entities (Est
Variable Interest Entities (Estimated Maximum Exposure To Loss) (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands | Feb. 29, 2024 | Nov. 30, 2023 |
Variable Interest Entity [Line Items] | ||
Investments in Unconsolidated VIEs | $ 1,308,208 | $ 1,240,627 |
Lennar’s Maximum Exposure to Loss | 1,446,473 | 1,386,646 |
Homebuilding | ||
Variable Interest Entity [Line Items] | ||
Investments in Unconsolidated VIEs | 706,374 | 659,224 |
Lennar’s Maximum Exposure to Loss | 826,038 | 787,226 |
Homebuilding | Upward America Venture | Commitment to fund capital | ||
Variable Interest Entity [Line Items] | ||
Obligations related to VIEs | 68,800 | 69,800 |
Homebuilding | Upward America Venture | Commitment for recourse debt | ||
Variable Interest Entity [Line Items] | ||
Obligations related to VIEs | 42,000 | 42,100 |
Multifamily | ||
Variable Interest Entity [Line Items] | ||
Investments in Unconsolidated VIEs | 388,109 | 384,718 |
Lennar’s Maximum Exposure to Loss | 406,710 | 402,735 |
Multifamily | Equity Commitments | ||
Variable Interest Entity [Line Items] | ||
Obligations related to VIEs | 12,800 | |
Lennar Financial Services | ||
Variable Interest Entity [Line Items] | ||
Investments in Unconsolidated VIEs | 139,706 | 140,676 |
Lennar’s Maximum Exposure to Loss | 139,706 | 140,676 |
Lennar Other | ||
Variable Interest Entity [Line Items] | ||
Investments in Unconsolidated VIEs | 74,019 | 56,009 |
Lennar’s Maximum Exposure to Loss | $ 74,019 | $ 56,009 |
Variable Interest Entities (Exp
Variable Interest Entities (Exposure to Losses) (Details) - Variable Interest Entity, Not Primary Beneficiary Including Third Parties - USD ($) $ in Thousands | Feb. 29, 2024 | Nov. 30, 2023 |
Variable Interest Entity [Line Items] | ||
Non-refundable option deposits and pre-acquisition costs | $ 2,325,346 | $ 1,949,219 |
Non-refundable option deposits included in consolidated inventory not owned | 504,033 | 451,632 |
Financial Standby Letters of Credit | ||
Variable Interest Entity [Line Items] | ||
Letters of credit in lieu of cash deposits under certain land and option contracts | $ 226,816 | $ 198,920 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities - (Schedule of Product Warranty Reserve) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 29, 2024 | Feb. 28, 2023 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Warranty reserve, beginning of the period | $ 414,796 | $ 418,017 |
Warranties issued | 61,776 | 53,679 |
Adjustments to pre-existing warranties from changes in estimates | (2,904) | (4,058) |
Payments | (68,110) | (64,304) |
Warranty reserve, end of period | $ 405,558 | $ 403,334 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - (Additional Information About Leases) (Details) $ in Thousands | 3 Months Ended | |||
Feb. 29, 2024 USD ($) | Feb. 28, 2023 USD ($) | Dec. 31, 2023 ft² | Nov. 30, 2023 USD ($) | |
Contingencies | ||||
Right-of-use assets | $ 104,784 | $ 145,812 | ||
Lease liabilities | $ 112,671 | $ 154,271 | ||
Weighted-average remaining lease term (in years) | 5 years | 7 years 6 months | ||
Weighted-average discount rate | 3.80% | 3.40% | ||
Rental expense | $ 26,217 | $ 26,904 | ||
Headquarters | ||||
Contingencies | ||||
Area of real estate property (sqft) | ft² | 213,200 | |||
Leased Unused Office Space | ||||
Contingencies | ||||
Area of real estate property (sqft) | ft² | 53,000 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities - (Future MInimum Payments Under Noncancellable Leases) (Details) - USD ($) $ in Thousands | Feb. 29, 2024 | Nov. 30, 2023 |
Commitments and Contingencies Disclosure [Abstract] | ||
2024 | $ 22,939 | |
2025 | 27,790 | |
2026 | 22,092 | |
2027 | 17,418 | |
2028 and thereafter | 34,262 | |
Total future minimum lease payments | 124,501 | |
Less: Interest | 11,830 | |
Present value of lease liabilities | 112,671 | $ 154,271 |
Variable lease costs | 15,300 | |
Short-term lease costs | $ 2,400 | |
Weighted-average remaining lease term (in years) | 5 years | 7 years 6 months |
Weighted-average discount rate | 3.80% | 3.40% |