Company: LEN
Filing Date: 2025-07-01
Form Type: 10-Q
Source: 0001628280-25-033777
Chunk: 118

Company: LENNAR CORP /NEW/
Filing Date: 2025-07-01
Form: 10-Q
Item: Item 8
Chunk 118
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, the fair values approximate their carrying value due to variable interest pricing terms and the short-term nature of the majority of the borrowings.Homebuilding - For senior notes and other debts payable, the fair value of fixed-rate borrowings is primarily based on quoted market prices and the fair value of variable-rate borrowings is based on expected future cash flows calculated using current market forward rates.Fair Value Measurements:GAAP provides a framework for measuring fair value, expands disclosures about fair value measurements and establishes a fair value hierarchy which prioritizes the inputs used in measuring fair value summarized as follows:Level 1: Fair value determined based on quoted prices in active markets for identical assets.Level 2: Fair value determined using significant other observable inputs.Level 3: Fair value determined using significant unobservable inputs.

21

Lennar Corporation and SubsidiariesNotes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

The Company’s financial instruments measured at fair value on a recurring basis are summarized below:Fair Value HierarchyFair Value at(In thousands)May 31, 2025November 30, 2024Financial Services Assets:Residential loans held-for-saleLevel 2$1,814,797 2,200,402 LMF Commercial loans held-for-saleLevel 372,203 50,316 Mortgage servicing rightsLevel 33,467 3,463 Forward optionsLevel 12,037 1,458 Lennar Other Assets:Investments in equity securitiesLevel 1$82,714 204,777 Investments available-for-saleLevel 339,069 40,578 Residential and LMF Commercial loans held-for-sale in the table above include:At May 31, 2025At November 30, 2024(In thousands)Aggregate Principal BalanceChange in Fair ValueAggregate Principal BalanceChange in Fair ValueResidential loans held-for-sale$1,880,054 (65,257)2,263,310 (62,907)LMF Commercial loans held-for-sale72,950 (747)50,020 296 The estimated fair values of the Company's financial instruments have been determined by using available market information and what the Company believes to be appropriate valuation methodologies. Considerable judgement is required in interpreting market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies might have a material effect on the estimated fair value amounts. The following methods and assumptions are used by the Company in estimating