v3.25.2
Financial Instruments and Fair Value Disclosures (Tables)
 6 Months Ended
May 31, 2025
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 May 31, 2025 and November 30, 2024, 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.
At May 31, 2025At November 30, 2024
(In thousands)Fair Value HierarchyCarrying AmountFair ValueCarrying AmountFair Value
ASSETS
Financial Services:
Loans held-for-investment, netLevel 3$52,489 52,489 60,969 61,044 
Investments held-to-maturityLevel 3134,280 134,383 135,646 138,160 
LIABILITIES
Homebuilding senior notes and other debt payable, netLevel 2$2,791,987 2,810,004 2,258,283 2,264,375 
Financial Services notes and other debt payable, netLevel 21,416,138 1,416,639 1,930,956 1,931,515 
Fair Value Measured On Recurring Basis
The Company’s financial instruments measured at fair value on a recurring basis are summarized below:
Fair Value HierarchyFair Value at
(In thousands)May 31, 2025November 30, 2024
Financial Services Assets:
Residential loans held-for-saleLevel 2$1,814,797 2,200,402 
LMF Commercial loans held-for-saleLevel 372,203 50,316 
Mortgage servicing rightsLevel 33,467 3,463 
Forward optionsLevel 12,037 1,458 
Lennar Other Assets:
Investments in equity securitiesLevel 1$82,714 204,777 
Investments available-for-saleLevel 339,069 40,578 
Residential and LMF Commercial loans held-for-sale in the table above include:
At May 31, 2025At November 30, 2024
(In thousands)Aggregate Principal BalanceChange in Fair ValueAggregate Principal BalanceChange in Fair Value
Residential loans held-for-sale$1,880,054 (65,257)2,263,310 (62,907)
LMF Commercial loans held-for-sale
72,950 (747)50,020 296 
Schedule of Unobservable Inputs Used in Discounted Cash Flow Model to Determine the Fair Value of Communities
May 31, 2025
Range
Discount rates at purchase6%—84%
Coupon rates2.0%—5.3%
Distribution datesOctober 2027—December 2028
Stated maturity datesOctober 2050—December 2051
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:
May 31, 2025November 30, 2024
Unobservable inputs:
Mortgage prepayment rate8%8%
Discount rate13%13%
Delinquency rate 11%12%
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:
Six Months Ended May 31,
20252024
Unobservable inputsRangeRange
Average selling price (1)$168,000—872,000178,000—282,000
Absorption rate per quarter (homes)2—710—15
Discount rate20%20%
(1)Represents the projected average selling price on future deliveries for communities in which the Company recorded valuation adjustments during both the six months ended May 31, 2025 and 2024.
Schedule Of Gains And Losses Of Financial Instruments Measured on a Recurring Basis
The changes in fair values for Level 1 and Level 2 financial instruments measured on a recurring basis are shown below by financial instrument and financial statement line item:
Three Months EndedSix Months Ended
May 31,May 31,
(In thousands)2025202420252024
Changes in fair value included in Financial Services revenues:
Loans held-for-sale$(32,753)17,187 (2,350)(28,865)
Mortgage loan commitments(22,583)(1,447)10,921 (32,102)
Forward contracts76,955 (27,375)28,492 72,917 
Forward options(931)(710)203 (1,054)
Interest rate swaps3,458 (1,598)162 (44)
Changes in fair value included in Lennar Other realized and unrealized losses from technology investments:
Investments in equity securities$(29,440)(21,514)(91,943)(26,651)
Changes in fair value included in other comprehensive income (loss), net of tax:
Lennar Other investments available-for-sale$(1,332)1,355 (1,510)1,717 
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 May 31,
20252024
(In thousands)Mortgage servicing rightsLMF Commercial loans held-for-saleMortgage servicing rightsLMF Commercial loans held-for-sale
Beginning balance$3,297 82,794 3,475 125,397 
Purchases/loan originations251 180,875 171 71,510 
Sales/loan originations sold, including those not settled— (190,936)— (129,335)
Disposals/settlements(56)— (44)— 
Changes in fair value (1)(25)(466)50 (857)
Interest and principal paydowns— (64)— — 
Ending balance$3,467 72,203 3,652 66,715 
Six Months Ended May 31,
20252024
(In thousands)Mortgage servicing rightsLMF Commercial loans held-for-saleMortgage servicing rightsLMF Commercial loans held-for-sale
Beginning balance$3,463 50,316 3,440 13,459 
Purchases/loan originations277 308,840 232 212,335 
Sales/loan originations sold, including those not settled— (285,823)— (156,285)
Disposals/settlements(153)— (70)— 
Changes in fair value (1)(120)(747)50 (2,985)
Interest and principal paydowns— (383)— 191 
Ending balance$3,467 72,203 3,652 66,715 
(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 May 31,
20252024
(In thousands)Fair Value
Hierarchy		Carrying ValueFair ValueTotal Losses, Net (1)Carrying ValueFair ValueTotal Losses, Net (1)
Homebuilding - non-financial assets:
Finished homes and construction in progress (2)Level 3$470,734 421,051 (49,683)120,553 100,968 (19,585)
Deposits and pre-acquisition costs on real estate (3)Level 38,661 — (8,661)332 — (332)
Multifamily - non-financial assets:
Investments in unconsolidated entities (4)Level 3$3,122 — (3,122)— — — 
Six Months Ended May 31,
20252024
(In thousands)Fair Value
Hierarchy		Carrying ValueFair ValueTotal Losses, Net (1)Carrying ValueFair ValueTotal Losses, Net (1)
Homebuilding - non-financial assets:
Finished homes and construction in progress (2)Level 3$742,658 672,632 (70,026)192,309 168,985 (23,324)
Land and land under development (2)Level 3191 134 (57)— — — 
Deposits and pre-acquisition costs on real estate (3)Level 38,928 — (8,928)3,202 — (3,202)
Multifamily - non-financial assets:
Investments in unconsolidated entities (4)Level 3$10,716 — (10,716)— — — 
(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 in the Company's condensed consolidated financial statements.
(3)Forfeited deposits and write-off of pre-acquisition costs on real estate were included in Homebuilding costs and expenses in the Company's condensed consolidated statements of operations and comprehensive income (loss).
(4)Valuation adjustments related to investments in unconsolidated entities were primarily included in Multifamily other income (expense), net in the Company's condensed consolidated statements of operations and comprehensive income (loss) for the three and six months ended May 31, 2025.
The table below summarizes communities reviewed for indicators of impairment and communities with valuation adjustments recorded:
Communities with valuation adjustments
At or for the Six Months Ended# of active communities# of communities with potential indicator of impairment# of communities
Fair Value
(in thousands)
Valuation Adjustments
(in thousands)
May 31, 20251,61710214$35,482 $17,918 
May 31, 20241,24532425,769 15,263