Company: LEN
Filing Date: 2025-10-03
Form Type: 10-Q
Source: 0001628280-25-044086
Chunk: 118

Company: LENNAR CORP /NEW/
Filing Date: 2025-10-03
Form: 10-Q
Item: Item 8
Chunk 118
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 November 30, 2024(In thousands)Fair Value HierarchyCarrying AmountFair ValueCarrying AmountFair ValueASSETSFinancial Services:Loans held-for-investment, net (1)Level 3$— — 60,969 61,044 Loans held-for-sale (1)Level 350,284 50,284 — — Investments held-to-maturityLevel 3133,558 133,413 135,646 138,160 LIABILITIESHomebuilding senior notes and other debt payable, netLevel 2$3,523,766 3,562,272 2,258,283 2,264,375 Financial Services notes and other debt payable, netLevel 21,863,845 1,864,336 1,930,956 1,931,515 (1)As of August 31, 2025, loans held-for-investment of $61.0 million (fair value of $50.3 million) were transferred to loans held-for-sale, based on the Company’s intent to sell the loans in the near future.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. The fair value of residential loans held-for-sale for which there is no active market for similar mortgage loans is determined using an independent third-party valuation that uses a discounted cash flow model to estimate fair value and is categorized as Level 3. The key assumptions used in the model, which are generally unobservable inputs, are mortgage prepayment rates, default rates, loss severity rates, and discount rates. Loans held-for-sale are carried at the lower of cost or fair value. 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.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