What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2022-01-28 compared with 2021-01-22 · 121 added, 64 removed, 189 unchanged (49% of the section changed)

Overview of Lennar Corporation

We are the largest homebuilder in the United States by home sale revenues and net earnings, an originator of residential and commercial mortgage loans, a provider of title insurance and closing services and a developer of multifamily rental properties.

In addition, we are involved in a venture that will invest in single family rental homes, and we have interests in companies that are engaged in applying technology to improve the homebuilding industry and real estate related aspects of the financial services industry.

We are the largest homebuilder in the United States by net earnings, an originator of residential and commercial mortgage loans, a provider of title insurance and closing services and a developer of multifamily rental properties.

In addition, we are a sponsor and manager of funds engaged in development and ownership of multifamily rental properties and a sponsor and manager of a fund engaged in ownership of single family rental properties.

We also have investments in companies that are engaged in applying technology to improve the homebuilding industry and real estate related aspects of the financial services industry.

Our homebuilding operations are the most substantial part of our business, generating $25.5 billion in revenues, or approximately 94% of consolidated revenues, in fiscal 2021.

2 unchanged sentences

Georgia, Illinois, Indiana, Maryland, Minnesota, North Carolina, Tennessee and Virginia

Arizona, California, Colorado, Nevada, Oregon, Utah and Washington

Urban divisions

Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah and Washington

Urban divisions and other homebuilding related investments primarily in California, including Five Point Holdings, LLC ("FivePoint")

Our other reportable segments are Financial Services, Multifamily and Lennar Other.

11 unchanged sentences

("CalAtlantic"), a major homebuilder which was building homes across the homebuilding spectrum, from entry level to luxury, in 43 metropolitan statistical areas spanning 19 states, and providing mortgage, title and escrow services.

In fiscal 2020, as the coronavirus ("COVID-19") pandemic caused the shutdown of large portions of our national economy, we accelerated various technology initiatives that made our home sale process safer, including selling homes virtually or through self-guided tours and digital closings.

As a robust housing market took shape, technology initiatives also helped meet strong housing demand.

We are focused on increasing the efficiencies in our building process and reducing selling, general and administrative expenses by using technology, deferring home sale price commitments until construction costs are finalized to protect against anticipated future cost escalations and using innovative strategies to reduce customer acquisition costs.

We also continue to focus on divesting non-core assets, possibly including our Multifamily platform, and migrating toward being more of a pure-play homebuilding and financial services company.

In addition, we are continuing our pivot to a land light operating model by controlling the timing of land purchases, reducing our years owned supply of homesites and increasing the percentage of land controlled through options or agreements versus owned land.

This included entering into arrangements in which third parties or joint ventures will purchase land we designate and give us options to purchase the land in the future.

Shortly after the end of fiscal 2020, we entered into a venture that will invest in single family rental homes.

In fiscal 2020, as the coronavirus ("COVID-19") pandemic caused the shutdown of large portions of our national economy, we accelerated the use of various technology initiatives that made our home sale process safer, including selling homes virtually or through self-guided tours and digital closings.

As a robust housing market took shape in the second half of 2020 and throughout 2021, technology initiatives helped us meet strong housing demand and reduce our marketing and other selling costs.

We are focused on increasing efficiencies in our building process and reducing selling, general and administrative expenses by using technology, deferring home sale price commitments until construction costs are finalized to protect against cost escalations and using innovative strategies to reduce customer acquisition costs.

We also continue to focus on divesting non-core assets through a planned spin-off to our stockholders of our Multifamily and single-family home rental platforms and some investment assets.

This will continue our migration toward being more of a pure homebuilding and financial services company.

In addition, we are continuing our pivot to a land light operating model by increasing the percentage of land controlled through options or agreements versus owned land and controlling the timing of land purchases, which reduce our years supply of owned homesites.

Homebuilding Operations

2 unchanged sentences

We primarily sell homes in communities targeted to first-time, move-up, active adult, and luxury homebuyers.

During 2020, we emphasized communities that targeted first time homebuyers, many of whom were moving out of urban locations in response to the COVID-19 pandemic.

The average sales price of a Lennar home varies depending on product and geographic location.

7 unchanged sentences

Our Next Gen ® home provides what can be a home within a home to accommodate children or parents or can be an office from which to work remotely.

• Flexible Operating Structure - Our local operating structure gives us the flexibility to make operating decisions based on local homebuilding conditions and customer preferences, while our centralized management structure provides oversight for our homebuilding operations.

• Digital Marketing - We are increasingly advertising homes through digital channels, which is significantly increasing the efficiency of our marketing efforts.

• Strategic partners and investments - We partner with and/or invest in technology companies that are looking to improve the homebuilding and financial services industries to better serve our customers and increase efficiencies.

• Land light strategy - We are focused on reducing our years owned supply of homesites and increasing the percentage of land controlled through options or agreements versus owned land.

• Digital Marketing - We are increasingly advertising homes through digital channels, which is significantly increasing the cost effectiveness of our marketing efforts.

• Technology Focused - We partner with and/or invest in technology companies that are looking to improve the homebuilding and financial services industries to increase efficiencies and create a better customer experience.

• Land light strategy - We are focused on reducing our years supply of owned homesites and increasing the percentage of land we control through options or agreements, including agreements with strategic land funds, versus owned land.

Diversified Program of Property Acquisition

1 unchanged sentence

Land purchases are subject to specified underwriting criteria and are made through our diversified program of property acquisition, which may consist of:

• Acquiring land directly from individual land owners/developers or homebuilders;

• Acquiring land directly from individual land owners/developers, or other homebuilders;

• Acquiring local or regional homebuilders that own, or have options to purchase, land in strategic markets;

• Acquiring land through option contracts, which generally enables us to control portions of properties owned by third parties (including land funds) or entities in which we have investments until we have determined whether to exercise the options;

• Acquiring land through option contracts, which generally enables us to control portions of properties owned by third parties (including strategic land funds) or entities in which we have investments until we have determined whether to exercise the options;

• Acquiring access to land through joint ventures or partnerships, which among other benefits, limits the amount of our capital invested in land while helping to ensure our access to potential future homesites and allowing us to participate in strategic ventures;

8 unchanged sentences

At November 30, 2021, we were actively building and marketing homes in 1,263 communities, including four communities being constructed by unconsolidated entities.

This was a decrease from the 1,283 communities, including five communities being constructed by unconsolidated entities, in which we were actively building and marketing homes at November 30, 2019.

The decrease was the result of accelerated sales pace and deliveries as well as a result of delayed openings due to the COVID-19 pandemic.

We anticipate the community count will increase by about 10% in fiscal 2021.

This was an increase from the 1,177 communities, including four communities being constructed by unconsolidated entities, in which we were actively building and marketing homes at November 30, 2020.

Even though our community count increased in 2021, the number of homes we built was limited by shortages of both construction materials and skilled labor.

We generally supervise and control the development of land and the design and building of our residential communities with a relatively small labor force.

2 unchanged sentences

The price schedules may be subject to change to meet changes in labor and material costs or for other reasons.

Although homebuilders throughout the country have sometimes encountered shortages of materials and skilled labor, because of our size and our builder of choice program, where we work with our trade partners to drive efficiencies, we have been less affected by these shortages than many of our competitors.

We believe that the current availability of raw materials and labor to our subcontractors are in most locations adequate for our planned levels of operation.

Although we, like homebuilders throughout the country, have encountered shortages of materials and skilled labor during 2021, we believe that because of our size and our builder of choice program, where we work with our trade partners to drive efficiencies, we believe we have been less affected by these shortages than many of our competitors.

We generally do not own heavy construction equipment.

We finance construction and land development activities primarily with cash generated from operations and corporate debt.

We finance construction and land development activities primarily with cash generated from operations and historically from proceeds of corporate debt.

We offer a diversified line of homes for first-time, move-up, active adult, luxury and multi-generational homebuyers in a variety of locations ranging from urban infill communities to suburban golf course communities.

4 unchanged sentences

We also sell homes through independent realtors.

In response to COVID-19, we have made it possible for potential homebuyers to take virtual tours of model homes.

We have also made it possible for potential homebuyers to take virtual tours of model homes.

Our marketing strategy has increasingly involved advertising through digital channels including real estate listing sites, paid search, display advertising, social media and e-mail marketing, all of which drive traffic to our website, www.lennar.com.

28 unchanged sentences

This is discussed in greater detail in Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7 of this Report.

FivePoint - We own an approximately 40% interest in FivePoint, which is a publicly traded developer of three large master planned mixed-use developments in California (Newhall Ranch, Great Park Neighborhoods, and the San Francisco Shipyard and Candlestick Point).

Single Family Rental Operations

In the first quarter of 2021, the Company formed the Upward America Venture (“Upward America”), and is managing and participating in Upward America.

Upward America is an investment fund that acquires new single-family homes in high growth markets across the United States and rents them to the people who will live in them.

Upward America has raised equity commitments totaling $1.25 billion primarily from institutional investors, including $125 million committed by Lennar.

By leveraging these equity investments, Upward America will be positioned to acquire over $4.0 billion of new single-family homes and townhomes from Lennar and potentially other homebuilders.

During the year ended November 30, 2021, Lennar delivered 1,457 homes to Upward America.

Subsequent to November 30, 2021, the equity commitments were increased to $1.6 billion.

FivePoint Holdings LLC

We own an indirect approximately 40% interest in FivePoint Holdings LLC, which is a publicly traded developer of three large master planned mixed-use developments in California (Newhall Ranch, Great Park Neighborhoods, and San Francisco Shipyard/Candlestick Point).

We sometimes purchase properties from FivePoint for use in our homebuilding operations.

Our Executive Chairman is a director of FivePoint.

Until recently, we had no role in the management of FivePoint, except that our Executive Chairman was a member of its Board.

However, in August 2021, our Executive Chairman became the non-employee Executive Chairman of the Board of Directors (but not the chief executive officer) of FivePoint.

As of November 30, 2021, the carrying amount of our investment in FivePoint was $381.6 million.

Solar Business

Our solar business is focused on providing homeowners the ability to purchase or lease solar power systems that generate much of a home's annual expected energy needs.

In fiscal 2020, our solar business operated in California, Colorado, Florida, Maryland, Nevada, South Carolina, and Texas.

Financial Services Operations

Residential Mortgage Financing

We offer conforming conventional, FHA-insured and VA-guaranteed residential mortgage loan products and other home mortgage products primarily to buyers of our homes through our financial services subsidiary, Lennar Mortgage (formerly Eagle Home Mortgage, LLC), from locations in most of the states in which we have homebuilding operations.

We offer conforming conventional, FHA-insured and VA-guaranteed residential mortgage loan products and other home mortgage products primarily to buyers of our homes through our financial services subsidiary, Lennar Mortgage, from locations in most of the states in which we have homebuilding operations.

In fiscal year 2021, our financial services subsidiaries provided loans to 75% of our homebuyers who obtained mortgage financing in areas where we offered services.

6 unchanged sentences

We finance our mortgage loan activities with borrowings under our financial services warehouse facilities or from our operating funds.

At November 30, 2020, Financial Services had four warehouse residential facilities maturing at various dates through fiscal 2021 with a total maximum borrowing capacity of $1.8 billion including an uncommitted amount of $700 million.

At November 30, 2021, Financial Services had four warehouse residential facilities maturing at various dates through fiscal 2022 with a total maximum borrowing capacity of $2.3 billion including an uncommitted amount of $1.1 billion.

We expect the facilities to be renewed or replaced with other facilities when they mature.

2 unchanged sentences

We have been using new technology to automate portions of our mortgage loan origination process.

This has reduced our origination costs from approximately $8,400 and $5,600 per loan in the fourth quarters of 2018 and 2019, respectively, to approximately $5,500 per loan in the fourth quarter of 2020.

This new technology has also made the mortgage financing

process easier for homebuyers and improved the customer experience.

In response to COVID-19, this new technology has also enabled us to increase the number of digital closings, with digital document signing and where possible digital notarization.

This new technology has made the mortgage financing process easier for homebuyers and improved the customer experience.

This new technology has also enabled us to increase the number of digital closings, with digital document signing and where possible digital notarization.

Title, Insurance and Closing Services

During 2020, we provided title insurance and closing services to our homebuyers and others in approximately 61,100 real estate transactions in 34 states, through Lennar Title (formerly CalAtlantic Title) compared to approximately 59,700 real estate transactions during 2019.

We are licensed to provide title insurance and closing services for residential and/or commercial transactions in 38 states to our homebuyers and others.

During 2021 and 2020, we closed approximately 67,500 and 61,100 real estate transactions, respectively, in 18 states.

Commercial Mortgage Origination

Our LMF Commercial subsidiary originates and sells into securitizations first mortgage loans, which are secured by income producing commercial properties.

The loans generally are between $5 million and $50 million each.

LMF Commercial also originates floating rate loans secured by commercial real estate properties, many of which are in transition, undergoing lease-up, sell-out, renovation or repositioning.

In order to finance LMF Commercial lending activities, as of November 30, 2020, LMF Commercial had five warehouse repurchase financing agreements maturing between December 2020 and December 2021 with commitments totaling $800 million, which includes $50 million for floating rate loans.

In order to finance LMF Commercial lending activities, as of November 30, 2021, LMF Commercial had four warehouse repurchase financing agreements maturing between December 2021 and July 2023 with commitments totaling $550 million.

Multifamily Operations

2 unchanged sentences

Our Multifamily segment is one of the largest developers of apartment communities across the country.

At November 30, 2020, it had interests in 65 communities with development costs of approximately $7.8 billion, of which 34 communities were completed and operating, seven communities were partially completed and leasing, 21 communities were under construction and the remaining communities were owned by the joint ventures.

At November 30, 2021, it had interests in 66 communities with development costs of approximately $7.9 billion, of which 43 communities were completed and operating, six communities were partially completed and leasing and 17 communities were under construction.

As of November 30, 2021, our Multifamily segment also had a pipeline of potential future projects, which were under contract or had letters of intent, totaling approximately $8.5 billion in anticipated development costs across a number of states that will be developed primarily by unconsolidated entities.

2 unchanged sentences

However, more recently we have focused on creating, participating in and managing ventures that build multifamily properties with the intention of retaining them after they are completed.

Our current ventures, Lennar Multifamily Venture Fund I LP ("LMV I") and Lennar Multifamily Venture Fund II LP ("LMV II"), are both long-term multifamily development investment vehicles involved in the development, construction and property management of class-A multifamily assets.

For additional information about our investments in and relationships with unconsolidated entities, see Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7 of this Report.

Strategic Technology Investments

We strategically invest in technology initiatives that, among other things, help us enhance the homebuying experience, reduce our SG&A expenses and stay at the forefront of homebuilding innovation.

Our strategic investments include, among others, Opendoor, a company that uses technology to streamline the home buying and selling process;

Blend, a company that provides a digital mortgage application platform;

Hippo Analytics, a company that provides home insurance in a more efficient and effective way;

States Title, a company that built a predictive analytics platform for title insurers;

and Notarize, a company that provides online notarizations.

At November 30, 2020, our investment in strategic technology ventures was $324.0 million, which was included in our Lennar Other and Financial Services segments.

In December 2020, one of our strategic investments, Opendoor, began trading on the Nasdaq stock market for which we expect to record a significant unrealized gain in the first quarter of fiscal 2021.

We strategically invest in companies involved in technology initiatives that, among other things, help us enhance the homebuying or home ownership experience, reduce our SG&A expenses and help us stay at the forefront of homebuilding innovation.

Six of the companies in which we have strategic investments are publicly traded.

• Blend, a company that is a digital lending platform developer simplifying and fast tracking the consumer finance process;

• Doma, a company that built a predictive analytics platform for title insurers;

• Hippo, a company that provides an efficient means of obtaining home insurance;

• Opendoor, a company that uses technology to significantly streamline the homebuying and selling process;

• SmartRent, an enterprise smart home automation company;

• Sunnova, a leading national residential solar company, to which during 2021 we sold our solar business in return for equity.

Each of the investments listed above, except Doma, is reflected in our financial statements at fair value, with changes to the fair values of those investments generating gains or losses on our quarterly financial statements.

Doma is accounted for using the equity method.

At November 30, 2021, the book value (including those recorded at fair value) of our investment in strategic technology investments was $1.2 billion and is included in our Lennar Other segment,

Rialto Fund Investments

Until November 30, 2018, we had a group of subsidiaries, including Rialto Capital Management, LLC, that primarily managed real estate related investment funds and other real estate related investment vehicles.

We sold the Rialto Management Group on November 30, 2018, however, we retained the right to receive carried interest distributions from some of the funds and other investment vehicles it manages.

We also retained limited partner investments in Rialto funds and investment vehicles

that totaled $190.4 million as of November 30, 2020, and are committed to invest as much as an additional $3.3 million in Rialto funds.

We sold the Rialto Management Group on November 30, 2018.

However, we retained the right to receive carried interest distributions from some of the funds and other investment vehicles Rialto manages.

We also retained limited partner investments in Rialto funds and investment vehicles that totaled $200.6 million as of November 30, 2021, and we are committed to invest as much as an additional $1.2 million in Rialto funds.

We historically have experienced, and expect to continue to experience, variability in quarterly results.

1 unchanged sentence

However, a variety of factors can alter seasonal patterns.

In 2020, the shutdown of large portions of our national economy in March and April due to the COVID-19 pandemic temporarily reduced our home sales, and therefore altered our normal seasonal pattern.

For example, in 2020, the shutdown of large portions of our national economy in March and April due to the COVID-19 pandemic temporarily reduced our home sales, and therefore altered our normal seasonal pattern.

The residential homebuilding industry is highly competitive.

7 unchanged sentences

• Inclusion of built-in Wi-Fi, solar power systems and advanced technology in many of our homes;

• Our consumer insight capabilities allows us to continually stay tapped into consumer preferences and feedback so we can continuously evolve and fine-tune our offerings, processes and communications for our Customers;

• Financial position as a result of our ability to finance land purchases and development activities with operating revenues and corporate level borrowing;

3 unchanged sentences

• Quality construction and home warranty programs, which are supported by a responsive customer care team;

• Our builder of choice program through which we maximize the efficiency of our suppliers' dealing with us;

• Size and scale in leading markets;

Our residential financial services operations compete with other mortgage lenders, including national, regional and local mortgage bankers and brokers, banks, savings and loan associations, non-bank mortgage lenders and other financial institutions, in the origination and sale of residential mortgage loans.

• Strategic investments in technology initiatives through our LEN X business that help us enhance the homebuying and home ownership experience, and helps us stay at the forefront of homebuilding innovation.

Our residential financial services operations compete with other residential mortgage lenders, including national, regional and local mortgage bankers and brokers, banks, savings and loan associations, non-bank mortgage lenders and other financial institutions, in the origination and sale of residential mortgage loans.

Principal competitive factors include interest rates and other features of mortgage loan products available to the consumer.

2 unchanged sentences

Our LMF Commercial subsidiary's commercial mortgage origination and sale business competes with a wide variety of banks and other lenders that offer small and mid-sized mortgage loans to commercial enterprises.

Competition is based primarily on service, price and relationships with mortgage brokers and other referral sources.

Competition is based

primarily on service, price and relationships with mortgage brokers and other referral sources.

LMF Commercial is run by highly seasoned managers who have been originating and securitizing loans for over 29 years and can benefit from long-standing relationships with referral sources, as well as being able to leverage Lennar's infrastructure facilities for rapid market entrances and analysis.

1 unchanged sentence

Additionally, we believe access to Lennar's local homebuilding teams provides LMF Commercial with a distinct advantage in its evaluation of real estate assets.

Our multifamily operations compete with other multifamily apartment developers and operators, including REITs, across the United States.

In addition, our multifamily operations compete in securing capital, partners and equity, and in securing tenants with the large supply of already existing rental apartments.

Our multifamily operations and the funds they manage compete with other multifamily apartment developers and operators, including REITs, across the United States.

In addition, our multifamily operations compete with a variety of investment vehicles in securing capital, partners and equity, and compete in securing tenants with the large supply of already existing rental apartments, as well as with sellers of homes.

Principal competitive factors include location, rental price and quality, and management of the apartment buildings.

Our single family home rental fund competes with other single family home rental developers and operators, including REITs, across the United States.

In addition, our single family home rental operations compete with a variety of investment vehicles in securing capital, partners and equity, and compete in securing tenants with the large supply of already existing single family rental homes as well as with sellers of homes.

Principal competitive factors include location, rental price and quality, and management of the homes.

The residential communities and multifamily apartment developments that we build are subject to a large variety of local, state and federal statutes, ordinances, rules and regulations relating to, among other things, zoning, construction permits or entitlements, construction materials, density, building design and property elevation, building codes and handling of waste.

1 unchanged sentence

These laws and regulations are subject to frequent change and often increase construction costs.

For example, the

California Energy Commission adopted a requirement that most newly built homes in California must have rooftop solar panels.

In some instances, we must comply with laws that require commitments from us to provide roads and other offsite infrastructure, and may require them to be in place prior to the commencement of new construction.

For example, the California Energy Commission recently adopted a requirement that most newly built homes in California must have rooftop solar panels.

These laws and regulations are usually administered by counties and municipalities and may result in fees and assessments or building moratoriums.

1 unchanged sentence

Also, some states are attempting to make homebuilders responsible for violations of wage and other labor laws by their subcontractors.

The COVID-19 pandemic has slowed down the approval process in many government offices, which has in many instances delayed our being able to begin constructing homes in particular communities.

Residential homebuilding and apartment development are also subject to a variety of local, state and federal statutes, ordinances, rules and regulations concerning the protection of health and the environment.

2 unchanged sentences

Over the years, several cities and counties in which we have developments have submitted to voters "slow growth" initiatives and other ballot measures that could impact the affordability and availability of land suitable for residential development within those localities.

Although many of these initiatives have been defeated, we believe that if similar initiatives were approved, residential construction by us and others within certain cities or counties could be seriously impacted.

Although many of these initiatives have been defeated, if similar initiatives were approved, residential construction by us and others within certain cities or counties could be seriously impacted.

In order to make it possible for some of our homebuyers to obtain FHA-insured or VA-guaranteed mortgages, we must construct the homes they buy in compliance with regulations promulgated by those agencies.

12 unchanged sentences

We are also subject to regulations promulgated by the Federal Consumer Financial Protection Bureau regarding residential mortgage loans.

We are focused on creating environmentally sustainable products, and our purchasing power enables us to include green features in our homes.

Each new home we build is healthier and more energy efficient, and has less impact on the environment, than prior generations of homes as a result of features like:

• Low-VOC paint that reduces pollution;

• WaterSense® faucets that reduce water flow without sacrificing performance;

• Low-E windows that reduce infrared and ultraviolet light coming into the home;

• Energy Star® appliances that reduce energy consumption.

In addition, our home design and engineering work optimizes efficiency of building materials and reduces construction waste.

We also believe in the value of clean energy from solar power, which is why we formed our own captive solar power company in 2013.

In 2021, we sold our SunStreet solar operations to Sunnova Energy International, a leading national residential solar company, in exchange for stock in the company.

We believe Sunnova will be better able than us at maximizing the potential of the SunStreet solar operations.

We are also partnering with Sunnova for it to be our exclusive solar and battery storage provider, and we are working with Sunnova on the development of community solar microgrids.

Human Capital

Our associates are our most valuable asset, and we are committed to building a workforce that supports each associate’s unique professional journey.

Our associates are our most valuable asset, and we are committed to supporting each associate’s (i.e., employee's) unique career journey.

We believe having an inclusive work environment, where everyone has a sense of belonging, not only drives engagement but fosters innovation, which is critical to driving growth.

Our “Everyone’s Included” mantra anchors our unique culture.

Our success starts and ends with having the best talent, and, as a result, we are focused on attracting, developing, engaging and retaining our associates.

1 unchanged sentence

We are committed to the health and safety of our associates and trade partners.

During fiscal 2020, as a result of the COVID-19 pandemic, we implemented additional safety protocols to protect our associates, trade partners and homebuyers, including protocols regarding social distancing, daily health checks and working remotely.

During fiscal 2020 and continuing through fiscal 2021, as a result of the COVID-19 pandemic, we implemented additional safety protocols to protect our associates, trade partners and homebuyers, including protocols regarding social distancing, daily health checks and working remotely.

Our experienced teams adapted quickly to the changes and have managed our business successfully during this challenging time.

4 unchanged sentences

It also includes the people who head our homebuilding divisions and non-homebuilding segments.

And it includes the many people who are

involved in design, construction oversight, marketing and other aspects of our homebuilding business and in carrying out our other activities.

And it includes the many people who are involved in design, construction oversight, marketing and other aspects of our homebuilding business and in carrying out our other activities.

At November 30, 2021, we employed 10,753 individuals of whom 8,323 were involved in the Homebuilding operations, 1,688 were involved in the Financial Services operations and 742 were involved in the Multifamily operations, compared to November 30, 2020, when we employed 9,495 individuals of whom 7,309 were involved in the Homebuilding operations, 1,545 were involved in the Financial Services operations and 641 were involved in the Multifamily operations.

1 unchanged sentence

However, we subcontract many phases of our homebuilding operations and some of the subcontractors we use have employees who are represented by labor unions.

We have policies that prohibit us from discriminating in employment opportunities on the basis of race or gender, and we take active steps to afford employment opportunities to under-represented ethnic groups.

NYSE Certification

5 unchanged sentences

We caution you that the information on our website is not part of this or any other report we file with, or furnish to, the SEC.

Special Note Regarding Forward-Looking Statements

This annual report on Form 10-K contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.

These statements concern expectations, beliefs, projections, plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts.

These forward-looking statements typically include the words “anticipate,” “believe,” “consider,” “estimate,” “expect,” “forecast,” “intend,” “objective,” “plan,” “predict,” “projection,” “seek,” “strategy,” “target,” “will” or other words of similar meaning.

Some of them are opinions formed based upon general observations, anecdotal evidence and industry experience, but that are not supported by specific investigation or analysis.

These forward-looking statements reflect our current views about future events and are subject to risks, uncertainties and assumptions.

We wish to caution readers that certain important factors may have affected and could in the future affect our actual results and could cause actual results to differ significantly from what is anticipated by our forward-looking statements.

The most important factors that could cause actual results to differ materially from those anticipated by our forward-looking statements include, but are not limited to:

the potential negative impact to our business of the ongoing coronavirus (“COVID-19”) pandemic, the duration, impact and severity of which is highly uncertain;

continuation of supply shortages and increased costs related to construction materials and labor;

cost increases related to real estate taxes and insurance;

reduced availability of mortgage financing, increased interest rates and increased competition in the mortgage industry;

reductions in the market value of our investments in public companies;

an extended slowdown in the real estate markets across the nation, including a slowdown in either the market for single family homes or the multifamily rental market;

our inability to successfully execute our strategies, including our land lighter strategy and our strategy to monetize non-core assets;

changes in general economic and financial conditions that reduce demand for our products and services, lower our profit margins or reduce our access to credit;

our inability to acquire land at anticipated prices;

the possibility that we will incur nonrecurring costs that affect earnings in one or more reporting periods;

decreased demand for our homes or Multifamily rental properties;

the possibility that the benefit from our increasing use of technology will not justify its cost;

increased competition for home sales from other sellers of new and resale homes;

our inability to pay down debt;

government actions or other factors that might force us to terminate our program of repurchasing our stock;

a decline in the value of our land inventories and resulting write-downs of the carrying value of our real estate assets;

the failure of the participants in various joint ventures to honor their commitments;

difficulty obtaining land-use entitlements or construction financing;

natural disasters and other unforeseen events for which our insurance does not provide adequate coverage;

new laws or regulatory changes that adversely affect the profitability of our businesses;

our inability to refinance our debt on terms that are as favorable as our current arrangements;

and changes in accounting conventions that adversely affect our reported earnings.

Please see "Item 1A-Risk Factors" of this Annual Report for a further discussion of these and other risks and uncertainties which could affect our future results.

We undertake no obligation to revise any forward-looking statements to reflect events or circumstances after the date of those statements or to reflect the occurrence of anticipated or unanticipated events, except to the extent we are legally required to disclose certain matters in SEC filings or otherwise.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business