Company: LEN
Filing Date: 2025-04-04
Form Type: 10-Q
Source: 0001628280-25-016792
Chunk: 27

Company: LENNAR CORP /NEW/
Filing Date: 2025-04-04
Form: 10-Q
Item: Item 1
Chunk 27
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1,397,646 1,930,956 1,931,515 The following methods and assumptions are used by the Company in estimating fair values:Financial Services - The fair values above are based on quoted market prices, if available. The fair values for instruments that do not have quoted market prices are estimated by the Company on the basis of discounted cash flows or other financial information. For notes and other debt payable, the fair values approximate their carrying value due to variable interest pricing terms and the short-term nature of the majority of the borrowings.

19

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

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.The Company’s financial instruments measured at fair value on a recurring basis are summarized below:Fair Value HierarchyFair Value at(In thousands)February 28, 2025November 30, 2024Financial Services Assets:Residential loans held-for-saleLevel 2$1,753,103 2,200,402 LMF Commercial loans held-for-saleLevel 382,794 50,316 Mortgage servicing rightsLevel 33,297 3,463 Forward optionsLevel 12,693 1,458 Lennar Other Assets:Investments in equity securitiesLevel 1$112,154 204,777 Investments available-for-saleLevel 340,401 40,578 Residential and LMF Commercial loans held-for-sale in the table above include:February 28, 2025November 30, 2024(In thousands)Aggregate Principal BalanceChange in Fair ValueAggregate Principal BalanceChange in Fair ValueResidential loans held-for-sale$1,785,606 (32,503)2,263,310 (62,907)LMF Commercial loans held-for-sale83,075 (281)50,020