3 unchanged sentences
Opinion on the Financial Statements
−Removed: We have audited the accompanying consolidated balance sheets of Lennar Corporation and subsidiaries (the "Company") as of November 30, 2023 and 2022, the related consolidated statements of operations and comprehensive income (loss), stockholders' equity, and cash flows, for each of the three years in the period ended November 30, 2023, and the related notes and the financial statement schedule listed in the Index at Item 15 (collectively referred to as the "consolidated financial statements").
+Added: We have audited the accompanying consolidated balance sheets of Lennar Corporation and subsidiaries (the "Company") as of November 30, 2024 and 2023, the related consolidated statements of operations and comprehensive income (loss), equity, and cash flows, for each of the three years in the period ended November 30, 2024, and the related notes and the financial statement schedule listed in the Index at Item 15 (collectively referred to as the "consolidated financial statements").
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of November 30, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended November 30, 2024 in conformity with accounting principles generally accepted in the United States of America.
12 unchanged sentences
Critical Audit Matter
−Removed: The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.
+Added: The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.
The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
16 unchanged sentences
◦ If an entity is determined to be a VIE, considering whether the Company appropriately determined the primary beneficiary by evaluating the contractual arrangements of the entity to determine if the Company has the power to direct activities that most significantly impact the VIE’s economic performance, and if the Company has the obligation to absorb losses of the entity or the right to receive benefits from the entity that could be significant to the VIE.
−Removed: ◦ For consolidated joint ventures, evaluated whether any reconsideration events occurred during the year that would result in deconsolidation, and if so, verified that deconsolidation occurred properly.
+Added: ◦ For consolidated joint ventures, evaluating whether any reconsideration events occurred during the year that would result in deconsolidation, and if so, verify that deconsolidation occurred properly.
◦ Evaluating the evidence obtained in other areas of the audit to determine if there were additional reconsideration events that had not been identified by the Company, including, among others, reading joint venture board minutes and agreeing the terms of certain joint venture agreements and side agreements, if any.
26 unchanged sentences
(1) Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its consolidated balance sheets the assets of consolidated variable interest entities ("VIEs") that are owned by the consolidated VIEs and liabilities of consolidated VIEs as to which there is no recourse against the Company.
−Removed: 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 .
−Removed: As of November 30, 2022, total assets include $ 1.4 billion related to consolidated VIEs of which $ 56.9 million is included in Homebuilding cash and cash equivalents, $ 0.3 million in Homebuilding receivables, net, $ 29.4 million in Homebuilding finished homes and construction in progress, $ 687.8 million in Homebuilding land and land under development, $ 48.7 million in Homebuilding deposits and pre-acquisition costs on real estate, $ 533.8 million in Homebuilding consolidated inventory not owned, $ 1.0 million in Homebuilding investments in unconsolidated entities, $ 23.0 million in Homebuilding other assets, $ 33.2 million in Multifamily assets and $9.0 million in Lennar Other assets.
+Added: As of November 30, 2024, total assets include $ 3.7 billion related to consolidated VIEs of which $ 67.0 million is included in Homebuilding cash and cash equivalents, $ 6.0 million in Homebuilding receivables, net, $ 9.7 million in Homebuilding finished homes and construction in progress, $ 602.9 million in Homebuilding land and land under development, $ 2.8 billion in Homebuilding consolidated inventory not owned, $ 71.8 million in Homebuilding deposits and pre-acquisition costs on real estate, $ 0.3 million in Homebuilding investments in unconsolidated entities, $ 42.3 million in Homebuilding other assets and $ 33.9 million in Multifamily assets.
+Added: 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, $ 1.2 billion in Homebuilding consolidated inventory not owned, $ 55.0 million in Homebuilding deposits and pre-acquisition costs on real estate, $ 0.3 million in Homebuilding investments in unconsolidated entities, $ 23.0 million in Homebuilding other assets and $ 32.6 million in Multifamily assets.
See accompanying notes to consolidated financial statements.
2 unchanged sentences
November 30, 2024 and 2023
−Removed: (Dollars in thousands except per share amounts)
+Added: (Dollars in thousands except share and per share amounts)
LIABILITIES AND EQUITY
9 unchanged sentences
Total liabilities 13,291,556 12,532,337
+Added: Commitments and contingent liabilities (See Note 9)
Stockholders’ equity:
20 unchanged sentences
Total liabilities and equity $ 41,312,781 39,234,303
+Added: (2) As of November 30, 2024, total liabilities include $ 2.7 billion related to consolidated VIEs as to which there was no recourse against the Company, of which $ 67.3 million is included in Homebuilding accounts payable, $ 2.6 billion in Homebuilding liabilities related to consolidated inventory not owned, $ 6.0 million in Homebuilding senior notes and other debts payable, net, $ 45.8 million in Homebuilding other liabilities and $ 1.0 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.
−Removed: As of November 30, 2022, total liabilities include $ 620.4 million related to consolidated VIEs as to which there was no recourse against the Company, of which $ 66.9 million is included in Homebuilding accounts payable, $ 510.9 million in Homebuilding liabilities related to consolidated inventory not owned, $ 29.4 million in Homebuilding senior notes and other debts payable, $ 7.2 million in Homebuilding other liabilities, $ 3.8 million in Multifamily liabilities and $2.2 million in Lennar Other liabilities.
See accompanying notes to consolidated financial statements.
25 unchanged sentences
Net earnings attributable to Lennar $ 3,932,533 3,938,511 4,614,125
−Removed: Other comprehensive income (loss), net of tax:
−Removed: Net unrealized gain (loss) on securities available-for-sale $ 2,471 1,464 ( 536 )
+Added: Other comprehensive income, net of tax:
+Added: Net unrealized gains on securities available-for-sale $ 2,650 2,471 1,464
Reclassification adjustments for gains included in net
earnings — — 2,285
−Removed: Total other comprehensive income (loss), net of tax $ 2,471 3,749 ( 536 )
+Added: Total other comprehensive income, net of tax $ 2,650 2,471 3,749
Total comprehensive income attributable to Lennar $ 3,935,183 3,940,982 4,617,874
42 unchanged sentences
Beginning balance 4,879 2,408 ( 1,341 )
−Removed: Total other comprehensive income (loss), net of tax 2,471 3,749 ( 536 )
+Added: Total other comprehensive income, net of tax 2,650 2,471 3,749
Balance at November 30, 7,529 4,879 2,408
25 unchanged sentences
Deferred income tax (benefit) expense 60,426 ( 67,968 ) ( 246,653 )
−Removed: Loans held-for-sale unrealized loss 26,658 33,287 14,449
+Added: Loans held-for-sale unrealized losses 52,482 26,658 33,287
Lennar Other unrealized (gains) losses from technology investments and other (gains) losses ( 67,226 ) 112,541 672,212
−Removed: Gain on sale of other assets, operating properties and equipment, CMBS bonds and other liabilities ( 7,015 ) ( 7,617 ) ( 27,678 )
−Removed: Gain on sale of interest in unconsolidated entity and other Multifamily gain — — ( 1,167 )
−Removed: Gain on sale of Financial Services' portfolio/businesses — — ( 3,811 )
+Added: Gains on sale of operating properties and equipment and other assets ( 38,837 ) ( 7,015 ) ( 7,617 )
Gain on redemption/repurchases of senior notes and other debts payable ( 825 ) ( 9,611 ) —
6 unchanged sentences
Increase in loans held-for-sale ( 218,393 ) ( 366,728 ) ( 202,920 )
−Removed: (Decrease) increase in accounts payable and other liabilities ( 625,862 ) 701,113 881,309
+Added: Increase (decrease) in accounts payable and other liabilities 380,380 ( 625,862 ) 701,113
Net cash provided by operating activities $ 2,403,379 5,179,738 3,265,668
1 unchanged sentence
Net additions to operating properties and equipment $ ( 171,503 ) ( 99,799 ) ( 57,214 )
−Removed: Proceeds from the sale of other assets 13,215 24,686 41,551
−Removed: Proceeds from sale of investment in consolidated/unconsolidated joint ventures — — 32,340
−Removed: Proceeds from sale of Financial Services' portfolio/businesses — — 3,327
+Added: Proceeds from the sale of operating properties and equipment and other assets 61,441 13,215 24,686
Investments in and contributions to unconsolidated entities ( 425,562 ) ( 201,042 ) ( 447,401 )
2 unchanged sentences
Proceeds from sale of commercial mortgage-backed securities bonds — — 9,191
−Removed: Decrease in Financial Services loans held-for-investment 14,329 19,491 29,397
+Added: (Increase) decrease in Financial Services loans held-for-investment ( 734 ) 14,329 19,491
Purchases of investment securities ( 4,519 ) ( 8,000 ) ( 93,769 )
8 unchanged sentences
Cash flows from financing activities:
−Removed: Net borrowings under warehouse facilities $ 28,712 409,067 262,107
+Added: Net (repayments) borrowings under warehouse facilities $ ( 232,848 ) 28,712 409,067
Redemption/repurchases of senior notes ( 553,865 ) ( 1,121,133 ) ( 575,000 )
Principal payments on notes payable and other borrowings ( 43,524 ) ( 105,118 ) ( 48,079 )
−Removed: Proceeds from other borrowings — — 13,973
Proceeds from liabilities related to consolidated inventory not owned 195,524 461,312 1,167,227
−Removed: Payments related to consolidated inventory not owned ( 842,781 ) ( 682,385 ) ( 350,583 )
−Removed: (Payments) proceeds related to other liabilities, net ( 5,187 ) ( 21,249 ) 25,564
+Added: Payments related to liabilities related to consolidated inventory not owned ( 209,333 ) ( 842,781 ) ( 682,385 )
+Added: Payments related to other liabilities, net ( 5,684 ) ( 5,187 ) ( 21,249 )
Receipts related to noncontrolling interests 20,117 21,149 41,816
4 unchanged sentences
Net cash used in financing activities $ ( 3,681,550 ) ( 3,247,589 ) ( 1,277,279 )
−Removed: Net increase in cash and cash equivalents and restricted cash 1,755,168 1,860,087 22,953
+Added: Net (decrease) increase in cash and cash equivalents and restricted cash ( 1,580,728 ) 1,755,168 1,860,087
Cash and cash equivalents and restricted cash at beginning of year 6,570,938 4,815,770 2,955,683
12 unchanged sentences
Supplemental disclosures of non-cash investing and financing activities:
−Removed: Purchases of inventories, land under development and other assets financed by sellers $ 13,500 36,947 141,319
+Added: Purchases of inventories financed by sellers $ 35,292 13,500 36,947
Net non-cash contributions to unconsolidated entities 23,354 367 232,616
30 unchanged sentences
Advertising costs were $ 190.9 million, $ 146.0 million and $ 102.1 million for the years ended November 30, 2024, 2023 and 2022, respectively.
+Added: These costs were included in Homebuilding costs and expenses in the Company's consolidated statements of operations and comprehensive income (loss) for the years ended November 30, 2024, 2023 and 2022.
Share-Based Payments
9 unchanged sentences
Financial Services restricted cash consists of upfront deposits and application fees LMF Commercial receives before originating loans and is recognized as income once the loan has been originated, as well as cash held in escrow by the Company’s loan service provider on behalf of customers and lenders which is disbursed in accordance with agreements between the transacting parties.
−Removed: Homebuilding cash and cash equivalents as of November 30, 2023 and 2022 included $ 594.8 million and $ 1.0 billion, respectively, of cash held in escrow for approximately two days .
+Added: Homebuilding cash and cash equivalents as of November 30, 2024 and 2023 included $ 265.6 million and $ 594.8
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
+Added: million, respectively, of cash held in escrow for approximately two days .
At November 30, 2024 and 2023, Homebuilding accounts receivable primarily related to receivables from land banks for land development, rebates and joint ventures.
4 unchanged sentences
Balances as of November 30, 2024 and 2023 are noted below:
+Added: At November 30,
(In thousands) 2024 2023
4 unchanged sentences
Receivables, net $ 1,053,211 887,992
−Removed: (1) Receivables, net as of November 30, 2022 included $ 50 million related to a short-term loan due from Upward America that was repaid subsequent to November 30, 2022.
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.
−Removed: Inventory costs include land, land development and home construction costs, real estate taxes, and interest related to development and construction.
+Added: Inventory costs include land, land development, home construction costs, real estate taxes, and interest related to development and construction.
Construction overhead and selling expenses are expensed as incurred.
2 unchanged sentences
The Company reviews its inventory for indicators of impairment by evaluating each community during each reporting period.
−Removed: The inventory within each community is categorized as finished homes and construction in progress or land under development based on the development state of the community.
+Added: The inventory within each community is categorized as finished homes, construction in progress or land under development based on the development state of the community.
There were 1,436 and 1,255 active communities, excluding unconsolidated entities, as of November 30, 2024 and 2023, respectively.
−Removed: If the undiscounted cash flows expected to be generated by a community are less than its carrying amount, an impairment charge is recorded to write down the carrying amount of such community to its estimated fair value.
+Added: If the undiscounted projected cash flows expected to be generated by a community are less than its carrying amount, an impairment charge is recorded to write down the carrying amount of such community to its estimated fair value.
In conducting its review for indicators of impairment on a community level, the Company evaluates, among other things, the margins on homes that have been delivered, margins on homes under sales contracts in backlog, projected margins with regard to future home sales over the life of the community, projected margins with regard to future land sales and the estimated fair value of the land itself.
10 unchanged sentences
In order to arrive at the assumed absorption pace for home sales and the assumed sales prices included in the Company’s cash flow model, the Company analyzes its historical absorption pace and historical sales prices in the community and in other comparable communities in the geographical area.
−Removed: In addition, the Company considers internal and external market studies and places greater emphasis on more current metrics and trends, which generally include, but are not limited to, statistics and forecasts on population demographics and on sales prices in neighboring communities, unemployment rates and
+Added: In addition, the Company considers internal and external market studies and places greater emphasis on more current metrics and trends, which generally include, but are not limited to, statistics and forecasts on population demographics and on sales prices in neighboring communities, unemployment rates and availability and sales prices of competing product in the geographical area where the community is located as well as the
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
−Removed: availability and sales prices of competing product in the geographical area where the community is located as well as the absorption pace realized in its most recent quarters and the sales prices included in the Company's current backlog for such communities.
+Added: absorption pace realized in its most recent quarters and the sales prices included in the Company's current backlog for such communities.
Generally, if the Company notices a variation from historical results over a span of two fiscal quarters, the Company considers such variation to be the establishment of a trend and adjusts its historical information accordingly in order to develop assumptions on the projected absorption pace and sales prices in the cash flow model for a community.
2 unchanged sentences
Since the estimates and assumptions included in the Company’s cash flow models are based upon historical results and projected trends, they do not anticipate unexpected changes in market conditions or strategies that may lead the Company to incur additional impairment charges in the future.
−Removed: The determination of fair value requires discounting the estimated cash flows at a rate the Company believes a market participant would determine to be commensurate with the inherent risks associated with the assets and related estimated cash flow streams.
+Added: The determination of fair value requires discounting the projected cash flows at a rate the Company believes a market participant would determine to be commensurate with the inherent risks associated with the assets and related estimated cash flow streams.
The discount rate used in determining each asset’s fair value depends on the community’s projected life and development stage.
21 unchanged sentences
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.
−Removed: During the year ended November 30, 2023, consolidated inventory not owned increased by $ 661.3 million with a corresponding increase to liabilities related to consolidated inventory not owned in the accompanying consolidated balance sheet as of November 30, 2023.
−Removed: The increase was primarily due to reclassifications from land and land under development to consolidated inventory not owned during the year ended November 30, 2023 as the
+Added: During the year ended November 30, 2024, consolidated inventory not owned increased by $ 1.1 billion with a corresponding increase to liabilities related to consolidated inventory not owned in the accompanying consolidated balance sheet as of November 30, 2024.
+Added: The increase was primarily due to consolidation of land bank option contracts and reclassifications from land and land under development to consolidated inventory not owned during
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
−Removed: Company continued to focus on increasing its controlled homesites as compared to owned homesites.
+Added: the year ended November 30, 2024 as the Company continued to focus on increasing its controlled homesites as compared to owned homesites.
The increase was partially offset by takedowns during the year ended November 30, 2024.
9 unchanged sentences
However, in substantially all instances, the Company has the right and ability to not exercise its option and forfeit its deposit without further penalty, other than termination of the option and loss of any unapplied portion of its deposit and pre-acquisition costs and the incurrence of any applicable termination fee associated with the option contract.
−Removed: Therefore, in substantially all instances, the Company does not consider the take-down price to be a firm contractual obligation.
+Added: Therefore, in all instances, the Company does not consider the take-down price to be a firm contractual obligation.
In determining whether to walk away from an option contract, the Company evaluates the option primarily based upon its expected cash flows from the property under option.
1 unchanged sentence
During the years ended November 30, 2024 and 2023, the Company wrote-off $ 5.1 million and $ 19.9 million, respectively, of deposit and pre-acquisition costs.
−Removed: To reflect the purchase price of homesite takedowns related to option contracts that the Company decided to exercise, 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 consolidated balance sheet as of November 30, 2023.
+Added: To reflect the purchase price of homesite take-downs related to option contracts that the Company decided to exercise, 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 consolidated balance sheet as of November 30, 2024.
Investments in Unconsolidated Entities
The Company evaluates the long-lived assets in unconsolidated entities for indicators of impairment during each reporting period.
−Removed: If a valuation adjustment is recorded by an unconsolidated entity related to its assets, the Company generally uses a discount rate between 10 % and 20 %, subject to the perceived risks associated with the community’s cash flow streams relative to its inventory or operating assets.
−Removed: The Company’s proportionate share of a valuation adjustment is reflected in the Company's Homebuilding, Multifamily or Lennar Other equity in earnings (loss) from unconsolidated entities with a corresponding decrease to its Homebuilding, Multifamily or Lennar Other investment in unconsolidated entities.
−Removed: Additionally, the Company evaluates if a decrease in the fair value of an investment below its carrying value is other-than-temporary.
−Removed: This evaluation includes certain critical assumptions made by management:
−Removed: (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 and liquidity needs of the unconsolidated entity.
−Removed: If the decline in the fair value of the investment is other-than-temporary, then these losses are included in Homebuilding other income, net, Multifamily other gain (loss) or Lennar Other other gain (loss).
−Removed: During the year ended November 30, 2023, the Company estimated the fair value of an investment in an unconsolidated entity using a cash flow analysis with a 15 % discount rate and concluded that the investment had an other-than-temporary impairment of $ 36.8 million included in Homebuilding other income (expense) , net in the Company's consolidated statements of operations and comprehensive income.
+Added: The Company’s proportionate share of a valuation adjustment is reflected in the Company's Homebuilding, Multifamily or Lennar Other equity in earnings (losses) from unconsolidated entities with a corresponding decrease to its Homebuilding, Multifamily or Lennar Other investment in unconsolidated entities.
+Added: Additionally, the Company evaluates whether a decrease in the fair value of an investment below its carrying value is other-than- temporary.
+Added: This evaluation includes an assessment of:
+Added: (1) projected future distributions from the unconsolidated entities, (2) the length of the time and the extent to which the market value has been less than cost and (3) various other factors, which include, but are not limited to, relationships with the other partners and banks, general economic market conditions, unfavorable regulatory actions, land status and liquidity needs of the unconsolidated entity.
+Added: If the Company determines from the evaluation of the indicators that the decline in the fair value of the investment is other-than-temporary, the Company will write-down the investment to fair value.
+Added: The impairment, if any, would be included in Homebuilding other income, net, Multifamily other gain (loss) or Lennar Other other gain (loss).
+Added: During the year ended November 30, 2024, the Company evaluated its investments in unconsolidated entities and concluded that no material other-than-temporary impairments were required.
+Added: During the year ended November 30, 2023, the Company estimated the fair value of an investment in an unconsolidated entity using a cash flow analysis with a 15 % discount rate and concluded that the investment had an other-than-temporary impairment of $ 36.8 million included in other income (expense) , net in the Company's consolidated statements of operations and comprehensive income (loss).
The Company tracks its share of cumulative earnings and distributions of its joint ventures ("JVs").
2 unchanged sentences
Variable Interest Entities
−Removed: GAAP requires the assessment of whether an entity is a VIE and, if so, if the Company is the primary beneficiary at the inception of the entity or at a reconsideration event.
+Added: GAAP requires the assessment of whether an entity is a variable interest entity ("VIE") and, if so, if the Company is the primary beneficiary at the inception of the entity or at a reconsideration event.
Additionally, GAAP requires the consolidation of VIEs in which an enterprise has a controlling financial interest.
−Removed: A controlling financial interest will have both of the following characteristics:
+Added: A controlling financial interest will have both
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
−Removed: the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.
+Added: of the following characteristics:
+Added: (a) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.
The Company’s variable interest in VIEs may be in the form of (1) equity ownership, (2) contracts to purchase assets, (3) management and development agreements between the Company and a VIE, (4) loans provided by the Company to a VIE or other partner and/or (5) guarantees provided by members to banks and other third parties.
4 unchanged sentences
In particular, business plans and budgets are generally required to be unanimously approved by all partners.
−Removed: Generally, the Company purchases less than a majority of the JV’s assets and the purchase prices under its option contracts are at market.
−Removed: Generally, Homebuilding and Multifamily unconsolidated entities are determined to be VIEs due to insufficient equity at risk for the JV entity as the partner(s) continue to provide subordinated financial support in the form of capital contributions.
−Removed: Homebuilding and Multifamily unconsolidated entities become VIEs and consolidate if the other partner(s) lack the intent and financial wherewithal to remain in the entity.
+Added: Generally, the Company has options on less than a majority of the JV’s assets at the balance sheet date and the purchase prices under its option contracts are initially negotiated at fair value.
+Added: Generally, Homebuilding, Multifamily and Lennar Other unconsolidated entities are determined to be VIEs due to insufficient equity at risk for the JV entity as the partner(s) continue to provide subordinated financial support in the form of capital contributions.
+Added: Homebuilding, Multifamily and Lennar Other unconsolidated entities become VIEs and consolidate if the other partner(s) lack the intent or financial wherewithal to remain in the entity.
As a result, the Company continues to fund operations and debt paydowns through partner loans or substituted capital contributions.
−Removed: Goodwill is recorded with acquisitions of businesses when the purchase price of the business exceeds the fair value of the net tangible and identifiable assets acquired.
−Removed: In accordance with ASC Topic 350, Intangibles-Goodwill and Other ("ASC 350"), the Company evaluates goodwill for potential impairment on at least an annual basis.
+Added: Goodwill is recorded with regard to acquisitions of businesses when the purchase price of the business exceeds the fair value of the net tangible and identifiable assets acquired.
+Added: In accordance with ASC 350, Intangibles-Goodwill and Other , the Company evaluates goodwill for potential impairment on at least an annual basis.
The Company has the option to perform a qualitative or quantitative assessment to determine whether the fair value of a reporting unit exceeds its carrying value.
Qualitative factors may include, but are not limited to, economic conditions, industry and market considerations, cost factors, overall financial performance of the reporting units and other entity and reporting unit specific events.
−Removed: The fair value estimate is derived through various valuation methods, including the use of discounted expected future cash flows of each reporting unit.
+Added: If a quantitative assessment is performed, the fair value estimate is derived through various valuation methods, including the use of discounted expected future cash flows of each reporting unit.
The expected future cash flows for each reporting unit are significantly impacted by current market conditions.
If these market conditions and resulting expected future cash flows for each reporting unit decline significantly, the actual results for each segment could differ from the Company's estimate, which may cause goodwill to be impaired.
−Removed: The annual goodwill impairment analysis was performed as of September 30, 2023, and no impairment was recorded.
+Added: The annual qualitative goodwill impairment analysis was performed as of September 30, 2024, and no impairment was recorded.
Operating Properties and Equipment
5 unchanged sentences
Operating properties and equipment are included in Homebuilding other assets in the consolidated balance sheets and were as follows:
+Added: At November 30,
(In thousands) 2024 2023
4 unchanged sentences
Accumulated depreciation and amortization ( 291,420 ) ( 265,831 )
−Removed: $ 404,789 355,095
+Added: Total $ 516,198 404,789
(1) Operating properties primarily include solar systems, rental operations and commercial properties.
30 unchanged sentences
Total interest expense $ 179,992 257,893 312,731
−Removed: (1) Included in Homebuilding other income, net.
+Added: (1) Included in Homebuilding other income (expense), net.
The Company records income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and attributable to operating loss and tax credit carryforwards.
50 unchanged sentences
As of November 30, 2024, Stuart Miller, the Company’s Executive Chairman and Co-Chief Executive Officer, directly owned, or controlled through family-owned entities, shares of Class A and Class B common stock, which represented approximately 40 % voting power of the Company’s stock.
−Removed: 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.
−Removed: The repurchase authorization has no expiration date.
−Removed: The authorization was in addition to what was remaining of the October 2021 stock repurchase program.
−Removed: Subsequent to November 30, 2023, the Company's Board of Directors authorized an increase to its stock repurchase program to enable the Company to repurchase up to an additional $ 5 billion in value of our outstanding Class A or Class B common stock.
+Added: 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.
+Added: This authorization was in addition to what was remaining of the Company's March 2022 stock repurchase program.
The repurchase authorization has no expiration date.
−Removed: November 30, 2023 November 30, 2022
+Added: At November 30, 2024, we have a remaining authorization to repurchase $ 3.4 billion in value of the Company's Class A or B common stock.
+Added: Years Ended November 30,
(Dollars in thousands, except price per share) Class A Class B Class A Class B
25 unchanged sentences
2,711,021 $ 114.72
+Added: At November 30, 2024, there was $ 134.2 million of unrecognized compensation expense related to unvested share-based awards granted under the Company’s share-based payment plan, all of which relates to nonvested shares with a weighted
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
−Removed: At November 30, 2023, there was $ 112.5 million of unrecognized compensation expense related to unvested share-based awards granted under the Company’s share-based payment plan, all of which relates to nonvested shares with a weighted average remaining contractual life of 1.8 years.
+Added: average remaining contractual life of 1.8 years.
For the years ended November 30, 2024, 2023 and 2022, 1.7 million, 2.0 million and 1.6 million nonvested shares, respectively, vested each year.
31 unchanged sentences
The Financial Services segment, in the normal course of business, uses derivative financial instruments to reduce its exposure to fluctuations in mortgage-related interest rates.
−Removed: The segment uses mortgage-backed securities ("MBS") forward commitments, option contracts, future contracts and investor commitments to protect the value of fixed rate-locked loan
+Added: The segment uses mortgage-backed securities ("MBS") forward commitments, option contracts, future contracts and investor commitments to protect the value of fixed rate-locked loan commitments and loans held-for-sale from fluctuations in mortgage-related interest rates.
+Added: These derivative financial instruments are carried at fair value with the changes in fair value included in Financial Services revenues.
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
−Removed: commitments and loans held-for-sale from fluctuations in mortgage-related interest rates.
−Removed: These derivative financial instruments are carried at fair value with the changes in fair value included in Financial Services revenues.
LMF Commercial - Loans Held-for-Sale
The originated mortgage loans are classified as loans held-for-sale and are recorded at fair value.
−Removed: The Company elected the fair value option for LMF Commercial's loans held-for-sale in accordance with Accounting Standards Codification ("ASC") 825, Financial Instruments , which permits entities to measure various financial instruments and certain other items at fair value on a contract-by-contract basis.
+Added: The Company elected the fair value option for LMF Commercial's loans held-for-sale in accordance with ASC 825, Financial Instruments , which permits entities to measure various financial instruments and certain other items at fair value on a contract-by-contract basis.
Management believes that carrying loans held-for-sale at fair value improves financial reporting by mitigating volatility in reported earnings caused by measuring the fair value of the loans and the derivative instruments, which are also carried at fair value, used to economically hedge them without having to apply complex hedge accounting provisions.
5 unchanged sentences
Management Fees and General Contractor Revenue
−Removed: The Multifamily segment provides management services with respect to the development, construction and property management of rental projects in joint ventures in which the Company has investments.
+Added: The Multifamily segment provides management services with respect to the development, construction and property management of rental projects in joint ventures in which the Company has investments or the funds the Company manages.
As a result, the Multifamily segment earns and receives fees, which are generally based upon a stated percentage of development and construction costs and a percentage of gross rental collections.
−Removed: In addition, the Multifamily segment provides general contractor services for the construction of some of its rental projects.
+Added: In addition, the Multifamily segment provides general contractor services for the construction of some of the rental projects.
Both management fees and general contractor revenue are recognized over the period in which the services are performed using an input method, which properly depicts the level of effort required to complete the management or construction services.
2 unchanged sentences
Recently Adopted Accounting Pronouncements
−Removed: In December, 2023, the FASB issued ASU 2023-09 (“ASU 2023-09”) Income Taxes (Topic 740):
−Removed: Improvements to Income Tax Disclosures .
+Added: In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (“ASU 2024-03”), which requires disclosure of disaggregated information about certain income statement expense line items in the notes to the financial statements on an interim and annual basis.
+Added: ASU 2024-03 will be effective for the annual reporting periods in fiscal years beginning after December 15, 2026, with early adoption permitted.
+Added: The Company is currently evaluating the impact that the adoption of ASU 2024-03 will have on its consolidated financial statements.
+Added: In December, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):
+Added: Improvements to Income Tax Disclosures (“ASU 2023-09”).
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.
−Removed: The Company is currently evaluating ASU 2023-09 and does not expect it to have a material effect on the Company’s consolidated financial statements.
+Added: The Company is currently evaluating ASU 2023-09 and does not expect it to have a material effect on its consolidated financial statements.
In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures ("ASU 2023-07").
2 unchanged sentences
The Company is currently reviewing the impact that the adoption of ASU 2023-07 may have on its consolidated financial statements and disclosure.
−Removed: In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-04, Reference Rate Reform, which provides optional expedients and exceptions for applying U.S.
−Removed: GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (LIBOR) or by another reference rate expected to be discontinued.
−Removed: The guidance was effective beginning March 12, 2020 and can be applied prospectively through December 31, 2024, with earlier adoption permitted.
−Removed: In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform - Scope, which clarified the scope and application of the original guidance.
−Removed: In December 2022, the FASB issued ASU 2022-06 Reference Rate Reform - Deferral of the Sunset Date of Topic 848, which defers the sunset date from December 31, 2022 to December 31, 2024.
−Removed: The adoption of ASU 2020-04 did not have a material impact on the Company's consolidated financial statements.
Reclassifications
−Removed: Certain amounts in the Company's consolidated statement of operations and consolidated balance sheets of prior year have been reclassified to conform to the fiscal 2023 presentation.
−Removed: These reclassifications had no impact on the Company's total assets, total equity, revenues or net earnings in its consolidated financial statements.
+Added: Certain prior year segment information in the consolidated financial statements has been reclassified to conform with the 2024 presentation.
+Added: This reclassification was for operational purposes and between segments and had no impact on the Company's total assets, total equity, revenue, or net income in the consolidated financial statements.
LENNAR CORPORATION AND SUBSIDIARIES
13 unchanged sentences
The assets and liabilities related to the Company’s segments were as follows:
−Removed: (In thousands) November 30, 2023
+Added: (In thousands) At November 30, 2024
Homebuilding Financial
3 unchanged sentences
Receivables, net (1) 1,053,211 545,752 53,595 — 1,652,558
−Removed: Inventories 18,352,735 — 544,935 — 18,897,670
+Added: Inventory owned and consolidated inventory not owned 19,719,551 — 592,879 — 20,312,430
+Added: Deposits and pre-acquisition costs on real estate 3,625,372 — 32,643 — 3,658,015
+Added: Investments in unconsolidated entities 1,344,836 — 503,303 379,435 2,227,574
Loans held-for-sale (2) — 2,250,718 — — 2,250,718
3 unchanged sentences
Investments held-to-maturity — 135,646 — — 135,646
−Removed: Deposits and pre-acquisition costs on real estate 2,002,154 — 32,063 — 2,034,217
−Removed: 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 1,734,698 89,637 93,450 86,430 2,004,215
−Removed: $ 33,628,392 3,566,546 1,381,513 657,852 39,234,303
+Added: Total assets $ 35,594,469 3,516,550 1,306,818 894,944 41,312,781
Notes and other debts payable, net $ 2,258,283 1,930,956 — — 4,189,239
+Added: Liabilities related to consolidated inventory not owned 3,563,934 — — — 3,563,934
Accounts payable and other liabilities 5,040,992 209,752 181,883 105,756 5,538,383
+Added: Total liabilities
$ 10,863,209 2,140,708 181,883 105,756 13,291,556
1 unchanged sentence
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
−Removed: (In thousands) November 30, 2022
+Added: (In thousands) At November 30, 2023
Homebuilding Financial
3 unchanged sentences
Receivables, net (1) 887,992 716,071 92,142 — 1,696,205
−Removed: Inventories 19,698,286 — 401,619 — 20,099,905
+Added: Inventory owned and consolidated inventory not owned 18,352,735 — 544,935 — 18,897,670
+Added: Deposits and pre-acquisition costs on real estate 2,002,154 — 32,063 — 2,034,217
+Added: Investments in unconsolidated entities 1,143,909 — 599,852 276,244 2,020,005
Loans held-for-sale (2) — 2,086,809 — — 2,086,809
3 unchanged sentences
Investments held-to-maturity — 140,676 — — 140,676
−Removed: Deposits and pre-acquisition costs on real estate 1,733,725 — 28,823 — 1,762,548
−Removed: Investments in unconsolidated entities 1,173,164 — 648,126 316,523 2,137,813
Goodwill 3,442,359 189,699 — — 3,632,058
Other assets 1,512,038 135,377 73,187 44,464 1,765,066
−Removed: $ 32,684,162 3,254,257 1,257,337 788,539 37,984,295
+Added: Total assets $ 33,628,392 3,566,546 1,381,513 657,852 39,234,303
Notes and other debts payable, net $ 2,816,482 2,163,805 3,741 — 4,984,028
+Added: Liabilities related to consolidated inventory not owned 2,540,894 — — — 2,540,894
Accounts payable and other liabilities 4,370,618 283,234 274,436 79,127 5,007,415
−Removed: $ 10,978,646 2,353,904 313,484 97,894 13,743,928
−Removed: (1) Receivables, net for Financial Services primarily related to loans sold to investors for which the Company had not yet been paid as of November 30, 2023 and November 30, 2022, respectively.
+Added: Total liabilities $ 9,727,994 2,447,039 278,177 79,127 12,532,337
+Added: (1) Receivables, net for Financial Services primarily related to loans sold to investors for which the Company had not yet been paid as of November 30, 2024 and 2023, respectively.
(2) Loans held-for-sale related to unsold residential and commercial loans carried at fair value.
−Removed: (3) Investments in equity securities include investments of $ 121.0 million and $ 178.0 million without readily available fair values as of November 30, 2023 and November 30, 2022, respectively.
−Removed: (4) Investments available-for-sale are carried at fair value with changes in fair value recorded as a component of accumulated other comprehensive income (loss) on the consolidated balance sheets.
+Added: (3) Investments in equity securities include investments of $ 143.0 million and $ 121.0 million without readily available fair values as of November 30, 2024 and 2023, respectively.
+Added: (4) Investments available-for-sale are carried at fair value with changes in fair value recorded as a component of accumulated other comprehensive income (loss) on the consolidated balance sheet.
Financial information relating to the Company’s segments was as follows:
15 unchanged sentences
(2) Financial Services operating earnings for the year ended November 30, 2022, included a $ 35.5 million one-time charge due to an increase in a litigation accrual related to a court judgement.
−Removed: (3) Operating loss for Lennar Other for the year ended November 30, 2023 included $ 50.2 million of mark-to-market unrealized losses on the Company's publicly traded technology investments and a $ 65.0 million write-off of one of the Company's non-public technology investments.
−Removed: Operating loss for Lennar Other for the year ended November 30, 2022 included $ 655.1 million of mark-to-market unrealized losses on the Company's publicly traded technology investments.
−Removed: Operating earnings for Lennar Other for the year ended November 30, 2021 included $ 510.8 million of mark-to-market unrealized gains on the Company's publicly traded technology investments.
+Added: (3) Operating loss for Lennar Other for the year ended November 30, 2024 included $ 25.2 million of mark-to-market unrealized gains on the Company's publicly traded technology investments and a $ 46.5 million one-time gain on the sale of a technology investment.
+Added: Operating loss for Lennar Other for the year ended November 30, 2023 included $ 50.2 million of mark-to-market unrealized losses on the
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
+Added: Company's publicly traded technology investments and a $ 65.0 million write-off of one of the Company's non-public technology investments.
+Added: Operating loss for Lennar Other for the year ended November 30, 2022 included $ 655.1 million of mark-to-market unrealized losses on the Company's publicly traded technology investments.
(4) Corporate and unallocated expenses primarily represent costs of operations at the Company's corporate headquarters in Miami.
5 unchanged sentences
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.
−Removed: 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.
+Added: 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 (losses) 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:
−Removed: Alabama, Florida, New Jersey , Pennsylvania and South Carolina
−Removed: Georgia, Illinois, Indiana, Maryland, Minnesota, North Carolina, Tennessee and Virginia
+Added: Alabama, Florida, New Jersey and Pennsylvania
+Added: Georgia, Illinois, Indiana, Maryland, Minnesota, North Carolina, South Carolina, Tennessee and Virginia
Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah and Washington
1 unchanged sentence
The assets related to the Company's Homebuilding segments were as follows:
+Added: At November 30,
(In thousands) 2024 2023
38 unchanged sentences
$ 129,196 133,253 104,290
−Removed: Net addition to (disposal of) operating properties and equipment:
+Added: Net addition to operating properties and equipment:
East $ 734 637 2,065
9 unchanged sentences
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.
−Removed: Financial Services’ operating earnings consist of revenues generated primarily from mortgage financing, title and closing services, and property and casualty insurance, less the cost of such services and certain selling, general and administrative expenses incurred by the segment.
+Added: 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.
5 unchanged sentences
Residential facilities maturing:
−Removed: December 2023 (1) $ 500,000 — 500,000
April 2025 $ 250,000 250,000 500,000
−Removed: May 2024 (2) 1,500,000 — 1,500,000
June 2025 1,400,000 — 1,400,000
−Removed: September 2024 100,000 100,000 200,000
+Added: August 2025 325,000 325,000 650,000
+Added: October 2025 100,000 100,000 200,000
+Added: December 2026 375,000 — 375,000
Total residential facilities $ 2,450,000 675,000 3,125,000
LMF commercial facilities maturing:
−Removed: November 2023 (1) 100,000 — 100,000
December 2024 (1) 200,000 — 200,000
+Added: January 2025 100,000 — 100,000
Total LMF commercial facilities $ 300,000 — 300,000
Total $ 3,425,000
−Removed: (1) Subsequent to November 30, 2023, the maturity date of December 2023 was extended to March 2024 and the maturity date of November 2023 was extended to January 2024.
−Removed: (2) In December 2023, the maximum aggregate commitment was reduced to $ 600 million until maturity in May 2024.
−Removed: (3) Consists of two commercial facilities each with maximum aggregate commitment amounts of $ 200 million.
−Removed: Subsequent to November 30, 2023, one of the facility's maturity date was extended to December 2024.
+Added: (1) Subsequent to November 30, 2024, the maturity date was extended to December 2025.
The Financial Services segment uses the residential mortgage loan warehouse facilities to finance its residential lending activities until the mortgage loans are sold to investors and the proceeds are collected.
2 unchanged sentences
Borrowings and collateral under the facilities were as follows:
+Added: At November 30,
(In thousands) 2024 2023
14 unchanged sentences
The provision for loan losses was immaterial for both the years ended November 30, 2024 and 2023.
−Removed: As of November 30, 2023 and 2022, loan origination liabilities were $ 17.6 million and $ 11.8 million, respectively, and included in Financial Services’ liabilities in the Company's consolidated balance sheets.
+Added: Loan origination liabilities were $ 16.7 million and $ 17.6 million, as of November 30, 2024 and 2023, respectively, and included in Financial Services’ liabilities in the Company's consolidated balance sheets.
LENNAR CORPORATION AND SUBSIDIARIES
14 unchanged sentences
Details related to Financial Services' CMBS were as follows:
+Added: At November 30,
(Dollars in thousands) 2024 2023
2 unchanged sentences
Incurred interest rate 3.4 % 3.4 %
−Removed: November 30, 2023
+Added: At November 30, 2024
Discount rates at purchase 6 % — 84 %
6 unchanged sentences
The multifamily business is a vertically integrated platform with capabilities spanning development, construction, property management, asset management, and capital markets.
−Removed: 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.
−Removed: Operations of the Multifamily Segment also include equity in earnings (loss) from unconsolidated entities.
+Added: Revenues are generated from the sales of land, from construction activities, and from management and promote fees generated from funds and joint ventures, less the cost of sales of land sold, expenses related to construction activities and general and administrative expenses.
+Added: Operations of the Multifamily Segment also include equity in earnings (losses) from unconsolidated entities and other gains, which includes proceeds of sales of buildings and investments.
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.
−Removed: 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.
+Added: 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 (losses) 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.
3 unchanged sentences
("SmartRent"), Sonder Holdings, Inc.
−Removed: ("Sonder") and Sunnova Energy International, Inc.
−Removed: ("Sunnova"), which are held at market and will therefore change depending on the value of the Company's
+Added: ("Sonder") and Sunnova Energy
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
−Removed: shareholdings in those entities on the last day of each quarter.
+Added: International, Inc.
+Added: ("Sunnova"), which are held at market and the carrying value of which 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.
−Removed: The following is a detail of Lennar Other unrealized losses from mark-to-market adjustments on the Company's technology investments:
+Added: The following is a detail of Lennar Other unrealized gains (losses) from mark-to-market adjustments on the Company's technology investments:
Years Ended November 30,
6 unchanged sentences
Sunnova (NOVA) ( 33,356 ) ( 57,798 )
−Removed: Lennar Other unrealized losses from technology investments $ ( 50,162 ) ( 655,094 )
+Added: Lennar Other unrealized gains (losses) from technology investments $ 25,180 ( 50,162 )
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.
−Removed: As of November 30, 2023, the Company's carrying value in Doma was zero as a result of allocated losses from Doma.
+Added: During the year ended November 30, 2024, the Company sold its investment in Doma and recorded a gain of $ 20.9 million in other income (expense), net, in the consolidated statement of operations and comprehensive income (loss).
+Added: During the year ended November 30, 2024, there was a $ 46.5 million one-time realized gain in Lennar Other on the sale of a technology investment that was included in other income (expense), net and other gains (losses) on the Company’s consolidated statements of operations and comprehensive income.
During the year ended November 30, 2023, the Company wrote off $ 65.0 million relating to one of the Company's non-public technology cost method investments which was recorded in Other income (expense), net and other gains (losses) in the Company’s consolidated statements of operations and comprehensive income (loss).
2 unchanged sentences
The investments in the Company's Homebuilding unconsolidated entities were as follows:
+Added: At November 30,
(In thousands) 2024 2023
15 unchanged sentences
Management fees and reimbursement of expenses, net of deferrals 12,969 16,306 20,792
−Removed: (1) The Company does not include in its Homebuilding equity in loss from unconsolidated entities its pro-rata share of unconsolidated entities’ earnings resulting from land sales to its homebuilding divisions.
+Added: (1) The Company does not include in its Homebuilding equity in earnings (losses) from unconsolidated entities its pro-rata share of unconsolidated entities’ earnings (losses) resulting from land sales to the Company's homebuilding divisions.
Instead, the Company accounts for those earnings as a reduction of the cost of purchasing the land from the unconsolidated entities.
This in effect defers recognition of the Company’s share of the unconsolidated entities’ earnings related to these sales until the Company delivers a home and title passes to a third-party homebuyer.
−Removed: The total debt of the Homebuilding unconsolidated entities in which the Company has investments was $ 1.4 billion as of both November 30, 2023 and 2022, of which the Company's maximum recourse exposure was $ 42.1 million and $ 9.1 million as of November 30, 2023 and 2022, respectively.
−Removed: In most instances in which the Company has guaranteed debt of an unconsolidated entity, the Company’s partners have also guaranteed that debt and are required to contribute their share of the guarantee payments.
−Removed: In a repayment guarantee, the Company and its venture partners guarantee repayment of a portion or all of the debt in the event of default before the lender would have to exercise its rights against the collateral.
−Removed: The maintenance
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
−Removed: guarantees only apply if the value of the collateral (generally land and improvements) is less than a specified percentage of the loan balance.
+Added: The total debt of the Homebuilding unconsolidated entities in which the Company has investments was $ 1.3 billion and $ 1.4 billion as of November 30, 2024 and 2023, respectively, of which the Company's maximum recourse exposure was $ 44.2 million and $ 42.1 million as of November 30, 2024 and 2023, respectively.
+Added: In most instances in which the Company has guaranteed debt of an unconsolidated entity, the Company’s partners have also guaranteed that debt and are required to contribute their share of the guarantee payments.
+Added: In a repayment guarantee, the Company and its venture partners guarantee repayment of a portion or all of the debt in the event of default before the lender would have to exercise its rights against the collateral.
+Added: The maintenance guarantees only apply if the value of the collateral (generally land and improvements) is less than a specified percentage of the loan balance.
The Company would be required to make a payment under a maintenance guarantee to bring the value of the collateral above the specified percentage of the loan balance.
3 unchanged sentences
If the Company is required to make a payment under any guarantee, the payment would generally constitute a capital contribution or loan to the Homebuilding unconsolidated entity and increase the Company's investment in the unconsolidated entity and its share of any funds the entity distributes.
+Added: The Company has an immaterial amount of recourse exposure to debt of the Homebuilding unconsolidated entities in which it has investments.
+Added: 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.
+Added: In most instances, the amount of guaranteed debt of an unconsolidated entity is less than value of the collateral securing it.
As of both November 30, 2024 and 2023, the fair values of the repayment guarantees, maintenance guarantees and completion guarantees were not material.
1 unchanged sentence
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 4 of the Notes to Consolidated Financial Statements).
−Removed: 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.
−Removed: Upward America has raised equity commitments totaling $ 1.6 billion.
+Added: The Upward America Ventures LP ("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.
+Added: Upward America could raise equity commitments totaling $ 1.0 billion.
The commitments are primarily from institutional investors, including $ 78 million committed by Lennar.
−Removed: During the year ended November 30, 2023, Lennar delivered 558 homes to Upward America.
As of November 30, 2024 and 2023, the carrying amount of the Company's investment in Upward America was $ 20.8 million and $ 14.8 million, respectively.
1 unchanged sentence
The unconsolidated joint ventures in which the Multifamily segment has investments usually finance their activities with a combination of partner equity and debt financing.
−Removed: 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.
+Added: In connection with many of the bank loans to the Multifamily unconsolidated joint ventures, the Company (or entities related to them) has been required to give guarantees of completion and cost over-runs to the lenders and partners.
Those completion guarantees may require that the guarantors complete the construction of the improvements for which the financing was obtained.
2 unchanged sentences
As of both November 30, 2024 and 2023, the fair value of the completion guarantees was immaterial.
−Removed: As of November 30, 2023 and 2022, Multifamily segment's unconsolidated entities had non-recourse debt with completion guarantees of $ 1.4 billion and $ 1.0 billion, respectively.
+Added: As of November 30, 2024 and 2023, the Multifamily segment's unconsolidated entities had non-recourse debt with completion guarantees of $ 907.8 million and $ 1.4 billion, respectively.
+Added: The decrease in the non-recourse debt with completion guarantees was due to completion of projects and sale of rental operation projects in Multifamily Venture Fund I.
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.
−Removed: Each Multifamily real estate investment trust has unilateral decision making rights related to development activities through its board of directors.
+Added: 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.
1 unchanged sentence
The details of the activity were as follows:
+Added: LENNAR CORPORATION AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Years Ended November 30,
4 unchanged sentences
Management fee income, net of deferrals 49,419 67,901 63,823
−Removed: The Multifamily segment includes Multifamily Venture Fund I ("LMV I"), Multifamily Venture Fund II LP ("LMV II") and Canada Pension Plan Investments Fund (the "Fund"), which are long-term multifamily development investment vehicles involved in the development, construction and property management of class-A multifamily assets.
−Removed: The Multifamily segment completed the initial closing of the Fund.
−Removed: The Multifamily segment expects the Fund to have almost $ 1.0 billion in equity and Lennar's ownership percentage in the Fund is 4 %.
−Removed: As of November 30, 2023, the Company has a $ 21.9 million investment in the Fund.
−Removed: Additional dollars will be committed as opportunities are identified by the Fund.
−Removed: LENNAR CORPORATION AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
+Added: 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.
+Added: The Multifamily segment completed the closing of the CPPIB Fund.
+Added: 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 %.
+Added: As of November 30, 2024, the Company has a $ 26.5 million investment in the CPPIB Fund.
+Added: 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 year ended November 30, 2024 are included below:
(In thousands) LMV I LMV II
−Removed: Lennar's carrying value of investment $ 193,829 267,874
+Added: Lennar's carrying value of investments $ 126,784 228,496
Equity commitments 2,204,016 1,257,700
3 unchanged sentences
Lennar's remaining commitments (1) 3,635 12,830
−Removed: Distributions to Lennar during the year ended November 30, 2023 — —
−Removed: (1) While there are remaining commitments with LMV I, there are no plans for additional capital calls.
+Added: Distributions to Lennar 199,519 12,820
+Added: (1) While there are remaining commitments with LMV I and LMV II, there are no plans for additional capital calls.
+Added: As of November 30, 2023, there were 38 rental operation projects in LMV I.
+Added: During the second half of fiscal 2024, the LMV I partners decided to liquidate and sell 38 rental operation projects of LMV I as the fund has come to the end of its contractual life.
+Added: During the year ended November 30, 2024, 33 LMV I rental operation projects were sold to various third-party buyers.
+Added: The Company recognized a net gain of $ 211.5 million on the sale of these rental operations projects which was recorded as equity in earnings (losses) in the condensed consolidated statement of operations.
+Added: As a result, the Company received net cash distributions of $ 199.5 million.
Lennar Other Unconsolidated Entities
−Removed: Lennar Other's unconsolidated entities includes fund investments the Company retained when it sold the Rialto assets and investment management platform in 2018, as well as strategic investments in technology companies and investment funds.
−Removed: The Company's investment in the Rialto funds and investment vehicles totaled $ 148.7 million and $ 185.1 million as of November 30, 2023 and November 30, 2022, respectively.
+Added: 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.
+Added: The Company's investment in the Rialto funds totaled $ 140.1 million and $ 148.7 million as of November 30, 2024 and November 30, 2023, respectively.
In addition, the Company is entitled to a portion of the carried interest distributions by those funds.
−Removed: The Company also had strategic technology investments in unconsolidated entities and investment funds of $ 127.5 million and $ 131.5 million, as of November 30, 2023 and November 30, 2022, respectively.
+Added: The Company also had strategic technology investments in unconsolidated entities and investment funds with a carrying value of $ 239.3 million and $ 127.5 million, as of November 30, 2024 and November 30, 2023, respectively.
+Added: During the year ended November 30, 2024, there was a $ 46.5 million one-time realized gain in Lennar Other on the sale of a technology investment that was included in other income (expense), net and other gains (losses) on the Company's consolidated statements of operations and comprehensive income (loss).
+Added: LENNAR CORPORATION AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Condensed Financial Information of Unconsolidated Entities
1 unchanged sentence
Financial information relating to the Company’s unconsolidated entities was as follows:
−Removed: (In thousands) November 30, 2023
+Added: Balance Sheets
+Added: (In thousands) At November 30, 2024
Homebuilding Multifamily Lennar
13 unchanged sentences
$ 7,232,708 6,133,294 2,457,506 15,823,508
−Removed: LENNAR CORPORATION AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
−Removed: (In thousands) November 30, 2022
+Added: (In thousands) At November 30, 2023
Homebuilding Multifamily Lennar
15 unchanged sentences
As of November 30, 2024 and 2023, this includes $ 3.2 million and $ 13.0 million, respectively, for Homebuilding, $ 16.1 million and $ 19.5 million, respectively, for Multifamily and an immaterial amount of debt issuance costs for Lennar Other.
+Added: Statements of Operations
(In thousands)
−Removed: Statement of Operations
−Removed: Revenues Cost and expenses Other income (expense), net (1) Net earnings (loss) of unconsolidated entities Equity in earnings (loss) from unconsolidated entities
+Added: Revenues Costs and expenses Other income (expense), net (1) Net earnings (losses) of unconsolidated entities Equity in earnings (losses) from unconsolidated entities
November 30, 2024 $ 1,719,012 1,841,128 608,145 486,029 164,099
2 unchanged sentences
(1) Other income (expense), net included realized and unrealized gains (losses) on investments.
+Added: LENNAR CORPORATION AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Homebuilding Senior Notes and Other Debts Payable
+Added: At November 30,
(Dollars in thousands) 2024 2023
8 unchanged sentences
4.50 % senior notes due 2024
−Removed: 797,347 896,259
−Removed: 4.875 % senior notes due December 2023
−Removed: 5.875 % senior notes due 2024
Mortgage notes on land and other debt 307,440 311,720
$ 2,258,283 2,816,482
−Removed: (1) During the year ended November 30, 2023, the Company repurchased $ 196.1 million and $ 100.0 million aggregate principal amount of 4.500 % senior notes due April 2024 and 4.75 % senior notes due November 2027, respectively, through open market repurchases.
+Added: (1) During the year ended November 30, 2024, the Company repurchased $ 100 million aggregate principal amount of senior notes due November 2027, through open market repurchases.
The carrying amounts of the senior notes in the table above are net of debt issuance costs of $ 2.4 million and $ 4.2 million, as of November 30, 2024 and 2023, respectively.
−Removed: In November 2023, the Company redeemed $ 378 million aggregate principal amount of its 4.875 % senior notes due December 2023 at an early redemption price of 100% of the principal amount outstanding.
−Removed: In addition, during the year ended November 30, 2023, the Company repurchased $ 21.8 million aggregate principal amount of these senior notes through open market repurchases .
−Removed: In August 2023, the Company redeemed $ 425 million aggregate principal amount of its 5.875 % senior notes due November 2024 at an early redemption price of 100 % of the principal amount outstanding using cash on hand, resulting in a pre-tax gain of $ 6.0 million, included in Homebuilding other income (expense), net.
−Removed: LENNAR CORPORATION AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
−Removed: The maximum available borrowings on the Company's unsecured revolving credit facility (the "Credit Facility") were as follows:
−Removed: (In thousands) November 30, 2023
−Removed: Commitments - maturing in April 2024 $ 350,000
+Added: In April 2024, the Company redeemed $ 454 million aggregate principal amount of its 4.50 % senior notes due April 2024.
+Added: The redemption price, which was paid in cash, was 100 % of the principal amount outstanding.
+Added: In April 2024, $ 350 million of the Company's unsecured revolving credit facility matured.
+Added: In November 2024, the Company amended and restated the credit agreement governing its unsecured revolving credit facility (the "Credit Facility").
+Added: The maximum available borrowings on the Credit Facility were as follows:
+Added: (In thousands) At November 30, 2024
Commitments - maturing in May 2027 $ 225,000
+Added: Commitments - maturing in November 2029 2,650,000
Total commitments $ 2,875,000
14 unchanged sentences
The Company's outstanding letters of credit and surety bonds are below:
+Added: At November 30,
(In thousands) 2024 2023
3 unchanged sentences
Anticipated future costs primarily for site improvements related to performance surety bonds 2,766,088 2,499,680
+Added: LENNAR CORPORATION AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The terms of each of the Company's senior notes outstanding at November 30, 2024 were as follows:
4 unchanged sentences
5.25 % senior notes due 2026
−Removed: 500,000 495,528 100 % April 2015
−Removed: 5.25 % senior notes due 2026
400,000 (3) (3) (3)
8 unchanged sentences
As part of the purchase accounting, the senior notes have been recorded at their fair value as of the date of acquisition (February 12, 2018).
+Added: (4) As of November 30, 2024, the principal amount remaining to be paid upon maturity was $ 700 million.
All of the senior notes are guaranteed by certain of the Company's 100% owned subsidiaries, which are primarily the Company's homebuilding subsidiaries.
−Removed: Although the guarantees are full, unconditional and joint and several while they are in effect, (i) a subsidiary will have its guarantee suspended at any time when it is not directly or indirectly guaranteeing at least $ 75 million of debt of Lennar Corporation (the parent company) other than senior notes, and (ii) a subsidiary will be released
−Removed: LENNAR CORPORATION AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
−Removed: from its guarantee and any other obligations it may have regarding the senior notes if all or substantially all its assets, or all of its capital stock, are sold or otherwise disposed of.
+Added: Although the guarantees are full, unconditional and joint and several while they are in effect, (i) a subsidiary will have its guarantee suspended at any time when it is not directly or indirectly guaranteeing at least $ 75 million of debt of Lennar Corporation (the parent company) other than senior notes, and (ii) a subsidiary will be released from its guarantee and any other obligations it may have regarding the senior notes if all or substantially all its assets, or all of its capital stock, are sold or otherwise disposed of.
The terms of the Company's mortgage on land and other debt at November 30, 2024 were as follows:
−Removed: As of November 30, Various Maturity Dates Through Interest Rates Up To Average Interest Rate
+Added: At November 30, Various Maturity Dates Through Interest Rates Up To Average Interest Rate
(Dollars in thousands) 2024 2023
7 unchanged sentences
The Company expects to pay its near-term maturities as they come due through either cash generated from operations, the issuance of additional debt or equity offerings or borrowings under the Company's Credit Facility.
+Added: LENNAR CORPORATION AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The provision for income taxes consisted of the following:
14 unchanged sentences
Tax credits (1) ( 1.85 ) ( 1.48 ) ( 2.16 )
−Removed: Nondeductible compensation — — 0.49
Tax reserves and interest expense, net (2) ( 0.01 ) — ( 0.83 )
2 unchanged sentences
Effective rate 23.64 % 23.96 % 22.84 %
−Removed: (1) During fiscal year 2022, Congress enacted the Inflation Reduction Act which included a retroactive extension of the new energy efficient
+Added: (1) During 2022, Congress enacted the Inflation Reduction Act which included a retroactive extension of the new energy efficient
home tax credit through 2032.
−Removed: (2) Includes a $ 50.2 million benefit related to the resolution of an uncertain tax position during fiscal year 2022.
+Added: (2) Includes a $ 50.2 million benefit related to the resolution of an uncertain tax position during 2022.
LENNAR CORPORATION AND SUBSIDIARIES
2 unchanged sentences
The tax effects of significant temporary differences that give rise to the net deferred tax assets were as follows:
+Added: At November 30,
(In thousands) 2024 2023
14 unchanged sentences
Deferred income 181,145 168,316
+Added: Unrealized gains on investments in equity securities 5,358 —
Other liabilities 28,855 55,734
2 unchanged sentences
The detail of the Company's net deferred tax assets (liabilities) was as follows:
−Removed: Years Ended November 30,
+Added: At November 30,
(In thousands) 2024 2023
8 unchanged sentences
This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, actual earnings, forecasts of future profitability, the duration of statutory carryforward periods, the Company’s experience with loss carryforwards not expiring unused and tax planning alternatives.
−Removed: As of November 30,
+Added: At November 30,
(In thousands) 2024 2023
14 unchanged sentences
The following summarizes the changes in interest and penalties accrued with respect to gross unrecognized tax benefits:
−Removed: Years Ended November 30,
(In thousands) 2024 2023
Accrued interest and penalties, beginning of the year $ — —
−Removed: Accrual of interest and penalties (primarily related to state audits) 95 —
−Removed: Reduction of interest and penalties ( 95 ) ( 59,937 )
+Added: Accrual of interest and penalties — 95
+Added: Interest income from audits and refund claims ( 434 ) —
+Added: Increase (reduction) of interest and penalties 434 ( 95 )
Accrued interest and penalties, end of the year $ — —
−Removed: The IRS is currently examining the Company's federal income tax returns for fiscal year 2022, and certain state taxing authorities are examining various fiscal years.
−Removed: The final outcome of these examinations is not yet determinable.
−Removed: The statute of limitations for the Company's major tax jurisdictions remains open for examination for fiscal year 2015 and subsequent years.
−Removed: The Company participates in an IRS examination program, Compliance Assurance Process, "CAP".
+Added: The Company participates in an IRS examination program, the Compliance Assurance Process ("CAP").
This program operates as a contemporaneous exam throughout the year in order to keep exam cycles current and achieve a higher level of compliance.
+Added: Certain state taxing authorities are examining various fiscal years.
+Added: The final outcome of these examinations is not yet determinable.
+Added: The statute of limitations for the Company's major tax jurisdictions remains open for examination for 2019 and subsequent years.
Earnings Per Share
15 unchanged sentences
Financial Instruments and Fair Value Disclosures
−Removed: The following table presents the carrying amounts and estimated fair values of financial instruments held or issued by the Company at November 30, 2023 and 2022, using available market information and what the Company believes to be appropriate valuation methodologies.
−Removed: Considerable judgment is required in interpreting market data to develop the estimates of fair value.
−Removed: The use of different market assumptions and/or estimation methodologies might have a material effect on the
+Added: The following table presents the carrying amounts and estimated fair values of financial instruments held or issued by the Company at November 30, 2024 and 2023, using available market information and what the Company believes to be
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
−Removed: estimated fair value amounts.
+Added: appropriate valuation methodologies.
+Added: Considerable judgment is required in interpreting market data to develop the estimates of fair value.
+Added: 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.
+Added: At November 30,
Fair Value Carrying Fair Carrying Fair
3 unchanged sentences
Investments held-to-maturity Level 3 135,646 138,160 140,676 139,396
−Removed: Homebuilding senior notes and other debts payable, net Level 2 $ 2,816,482 2,785,712 4,047,294 3,993,242
−Removed: Financial Services notes and other debts payable, net Level 2 2,163,805 2,164,441 2,135,093 2,135,797
+Added: Homebuilding senior notes and other debt payable, net Level 2 $ 2,258,283 2,264,375 2,816,482 2,785,712
+Added: Financial Services notes and other debt payable, net Level 2 1,930,956 1,931,515 2,163,805 2,164,441
Multifamily notes payable, net Level 2 — — 3,741 3,741
73 unchanged sentences
Investments in equity securities $ 25,180 ( 50,162 ) ( 655,094 )
−Removed: Changes in fair value included in other comprehensive income (loss), net of tax:
+Added: Changes in fair value included in other comprehensive income, net of tax:
Lennar Other investments available-for-sale $ 2,650 2,471 1,464
11 unchanged sentences
Ending balance $ 3,463 50,316 3,440 13,459
+Added: (1) LMF Commercial includes $ 9.5 million of loans that was converted to loans held-for-sale during the year ended November 30, 2024.
(2) Changes in fair value for LMF Commercial loans held-for-sale and Financial Services mortgage servicing rights are included in Financial Services' revenues.
+Added: LENNAR CORPORATION AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
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.
−Removed: The fair values included in the tables below represent only those assets whose carrying values were adjusted to fair value during the respective periods disclosed.
+Added: 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:
10 unchanged sentences
Level 3 — — — 52,147 49,539 ( 2,608 ) 135,844 126,135 ( 9,709 )
−Removed: Other assets (2)
−Removed: Level 3 — — — — — — 12,764 12,024 ( 740 )
+Added: Deposits and pre-acquisition costs on real estate (3) Level 3 5,120 — ( 5,120 ) 19,914 — ( 19,914 ) 47,893 — ( 47,893 )
Investments in unconsolidated entities (4) Level 3 — — — 78,834 37,792 ( 41,042 ) 1,454 — ( 1,454 )
+Added: Non-financial assets
+Added: Land and land under development (5) Level 3 $ 139,980 49,970 ( 90,010 ) — — — — — —
+Added: Investments in unconsolidated entities (6) Level 3 24,753 — ( 24,753 ) — — — — — —
(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.
−Removed: During the years ended November 30, 2023 and 2022, total losses, net, for land and land under development included $ 19.9 million and $ 47.9 million, respectively, of deposit and pre-acquisition cost write-offs.
−Removed: LENNAR CORPORATION AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
−Removed: (3) Valuation adjustments related to investments in unconsolidated entities were primarily included in Homebuilding other income (expense), net in the Company's consolidated statements of operations and comprehensive income for the year ended November 30, 2023.
+Added: (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).
+Added: (4) Valuation adjustments related to Homebuilding investments in unconsolidated entities were primarily included in other income (expense), net in the Company's consolidated statements of operations and comprehensive income (loss) for the years ended November 30, 2023 and 2022, respectively.
+Added: (5) Valuation adjustments for land and land under development were included in Multifamily costs and expenses.
+Added: (6) Valuation adjustments related to Multifamily investments in unconsolidated entities were included in other income (expense), net in the Company's consolidated statements of operations and comprehensive income (loss) for the year ended November 30, 2024.
During the year ended November 30, 2023, the Company wrote off $ 65.0 million relating to one of the Company's non-public technology cost method investments which was recorded in Other income (expense), net and other gains (losses) in the Company’s consolidated statements of operations and comprehensive income (loss).
−Removed: See Note 1 for a detailed description of the Company’s process for identifying and recording valuation adjustments related to Homebuilding inventory.
+Added: See Note 1 for a detailed description of the Company’s process for identifying and recording valuation adjustments related to Homebuilding inventory and investments in unconsolidated entities.
Variable Interest Entities
−Removed: During the year ended November 30, 2023, 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.
−Removed: Based on the Company's evaluation, there were no variable interest entities ("VIEs") that were consolidated or deconsolidated during the year ended November 30, 2023.
−Removed: The carrying amount of the Company's consolidated VIE's assets and non-recourse liabilities are disclosed in the footnote to the consolidated balance sheets.
+Added: The Company evaluated the joint venture ("JV") agreements of its JV's that were formed or that had reconsideration events, such as changes in the governing documents or to debt arrangements during the year ended November 30, 2024 and based on the Company's evaluation, it consolidated one entity that had a total assets and liabilities of $ 3.6 million and $ 3.2 million, respectively.
+Added: During the year ended November 30, 2024, there were no variable interest entities ("VIEs") that were deconsolidated.
+Added: The carrying amount of the Company's consolidated VIE's assets and non-recourse liabilities are disclosed in the footnotes to the consolidated balance sheets.
A VIE’s assets can only be used to settle obligations of that VIE.
1 unchanged sentence
The assets held by a VIE are usually collateral for that VIE’s debt.
−Removed: The Company and other partners do not generally have an obligation to make capital contributions to a VIE unless the Company and/or the other partner(s) have entered into debt guarantees with the VIE’s lenders.
+Added: The Company and other partners do not generally have an obligation to make capital contributions to a VIE, other than as a result of capital calls in accordance with business plans, unless the Company and/or the other partner(s) have entered into debt guarantees with the 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.
+Added: LENNAR CORPORATION AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Unconsolidated VIEs
The Company’s recorded investments in VIEs that are unconsolidated and related estimated maximum exposure to loss were as follows:
−Removed: As of November 30,
+Added: At November 30,
(In thousands) Investments in Unconsolidated VIEs Lennar’s Maximum Exposure to Loss Investments in
7 unchanged sentences
(1) As of November 30, 2024 and 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 $ 20.4 million and $ 69.8 million, respectively.
−Removed: In addition, as of November 30, 2023, there was recourse debt of VIEs of $ 42.1 million and as of November 30, 2022, there was $ 52.7 million of receivables relating to a short-term loan and management fee owed to the Company by Upward America.
+Added: In addition, as of November 30, 2024 and 2023, there was recourse debt of VIEs of $ 44.2 million and $ 42.1 million, respectively.
(2) As of November 30, 2024 and 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.
−Removed: The maximum exposure for LMV I and LMV II in addition to the investment also included the remaining combined equity commitment of $ 12.8 million and $ 19.3 million as of November 30, 2023 and 2022, respectively, for future expenditures related to the construction and development of its projects.
−Removed: The decrease in exposure for the year ended November 30, 2023 is primarily due to the removal of LMV I as the Fund does not expect to call for equity in the future.
−Removed: As a result, LMV I is not a VIE as of November 30, 2023.
−Removed: (3) As of both November 30, 2023 and 2022, the Company's maximum exposure to loss of the Financial Services segment was limited to its investment in the unconsolidated VIEs and related to the Financial Services' CMBS investments held-to-maturity.
−Removed: (4) At November 30, 2023, the Company's maximum recourse exposure to loss of the Lennar Other segment was limited to its investments in the unconsolidated VIEs.
−Removed: LENNAR CORPORATION AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
+Added: The maximum exposure for LMV II, in addition to the investment, also included the remaining combined equity commitment of $ 12.8 million as of November 30, 2023, for expenditures related to the construction and development of its projects.
+Added: The decrease in exposure as of November 30, 2024 is primarily due to the removal of LMV II as the fund does not expect to call for equity in the future.
+Added: As a result, LMV II is not a VIE as of November 30, 2024.
+Added: (3) As of both November 30, 2024 and 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 held-to-maturity investments.
+Added: (4) At November 30, 2024 and 2023, the Company's maximum recourse exposure to loss of the Lennar Other segment was limited to its investments in the unconsolidated VIEs.
+Added: The increase in exposure was due to the Company entering into a new JV which is a VIE and its continued contributions to 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.
11 unchanged sentences
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.
−Removed: Land under option with third party holding companies that the Company was economically compelled to takedown was $ 1.2 billion as of November 30, 2023 and is included in consolidated inventory not owned.
+Added: As of November 30, 2024, land under option with third parties that the Company was economically compelled to takedown was $ 2.8 billion, of which $ 1.5 billion were land purchase contract obligations due to land banks upon maturity of the contracts.
+Added: The Company’s intention is to have other land banks close on the land purchase commitments and the Company will option the land from the land banks.
+Added: Land under option with third parties 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 $ 1.2 billion as of November 30, 2024.
+Added: LENNAR CORPORATION AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The Company’s exposure to losses on its option contracts with third parties and unconsolidated entities was as follows:
+Added: At November 30,
(In thousands) 2024 2023
Non-refundable option deposits and pre-acquisition costs $ 3,529,889 1,949,219
+Added: Non-refundable option deposits included in consolidated inventory not owned 520,731 451,632
Letters of credit in lieu of cash deposits under certain land and option contracts 341,834 198,920
−Removed: For the year ended November 30, 2023, the Company purchased a significant portion of land from one land bank (the "land bank”).
−Removed: There were no amounts due to the land bank as of November 30, 2023, 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.
−Removed: As of November 30, 2023, the total deposits and pre-acquisition costs on real estate relating to contracts with the land bank were $ 438.7 million.
−Removed: As of November 30, 2023, total consolidated inventory not owned and liabilities related to consolidated inventory not owned relating to contracts with the land bank were $ 693.1 million and $ 577.9 million, respectively.
−Removed: The Company believes there are other land banks that could be substituted should the land bank become unavailable or non-competitive with respect to land banking of future land.
−Removed: Thus, the Company does not believe that the loss of the Company’s relationship with this land bank would have a material adverse effect on the Company’s business, financial condition or cash flows.
+Added: For the year ended November 30, 2024, the Company purchased a significant portion of land from two land banks (the "Land Banks”).
+Added: There were no amounts due to the Land Banks as of November 30, 2024, resulting from land purchases as the full purchase price of the land is typically paid to the Land Banks at closing when land is purchased by the Company.
+Added: As of November 30, 2024, the total deposits and pre-acquisition costs on real estate relating to contracts with the Land Banks were $ 1.4 billion.
+Added: As of November 30, 2024, total consolidated inventory not owned and liabilities related to consolidated inventory not owned relating to contracts with the Land Banks were $ 726.5 million and $ 560.0 million, respectively.
+Added: The Company believes there are other land banks that could be substituted should the Land Banks become unavailable or non-competitive with respect to land banking of future land.
+Added: Thus, the Company does not believe that the loss of the Company’s relationship with these Land Banks would have a material adverse effect on the Company’s business, financial condition or cash flows.
Commitments and Contingent Liabilities
5 unchanged sentences
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.
−Removed: LENNAR CORPORATION AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The Company is subject to the usual obligations associated with entering into contracts (including option contracts) for the purchase, development and sale of real estate, which it does in the routine conduct of its business.
8 unchanged sentences
The following table includes additional information about the Company's leases:
−Removed: (Dollars in thousands) November 30, 2023
+Added: (Dollars in thousands) At November 30, 2024
Right-of-use assets $ 275,248
2 unchanged sentences
Weighted-average discount rate 5.0 %
+Added: LENNAR CORPORATION AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The Company has entered into agreements to lease certain office facilities and equipment under operating leases.
6 unchanged sentences
Present value of lease liabilities (2) $ 262,119
−Removed: (1) Future minimum lease payments exclude variable lease costs and short-term lease costs, which were $ 21.1 million and $ 2.0 million, respectively.
+Added: (1) Total future minimum lease payments exclude variable lease costs of $ 24.6 million and short-term lease costs of $ 2.2 million.
(2) The Company's leases do not include a readily determinable implicit rate.
5 unchanged sentences
Rental expense $ 125,621 104,653 105,414
−Removed: On occasion, the Company may sublease rented space which is no longer used for the Company's operations.
+Added: In December 2023, the Company purchased its corporate headquarters building in which the Company had previously leased office space.
+Added: 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.
+Added: On occasion, the Company may sublease other rented space which is no longer used for the Company's operations.
For both the years ended November 30, 2024 and 2023, the Company had an immaterial amount of sublease income.
5 unchanged sentences
The Company does not presently anticipate any draws upon these bonds that would have a material effect on its consolidated financial statements.
−Removed: LENNAR CORPORATION AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Substantially all of the loans the Financial Services segment originates are sold within a short period in the secondary mortgage market on a servicing-released, non-recourse basis.
After the loans are sold, the Company retains potential liability for possible claims by purchasers that it breached certain limited industry-standard representations and warranties in the loan sale agreements.
−Removed: Purchasers continue to try to defray any losses incurred by purporting to have found inaccuracies related to sellers’ representations and warranties in particular loan sale agreements.
+Added: Purchasers sometimes try to defray any losses incurred by purporting to have found inaccuracies related to sellers’ representations and warranties in particular loan sale agreements.
Mortgage investors or others could seek to have the Company buy back mortgage loans or compensate them for losses incurred on mortgage loans that the Company has sold based on claims that the Company breached its limited representations or warranties.
3 unchanged sentences
Loan origination liabilities are included in Financial Services’ liabilities in the Company's consolidated balance sheets.
+Added: LENNAR CORPORATION AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
1 unchanged sentence
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.