Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and accompanying notes included under Item 1 of this Report and our audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K, for our fiscal year ended November 30, 2021.

Some of the statements in this Management’s Discussion and Analysis of Financial Condition and Results of Operations, and elsewhere in this Quarterly Report on Form 10-Q, are "forward-looking statements," within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements typically include the words “anticipate,” “believe,” “consider,” “estimate,” “expect,” “forecast,” “intend,” “objective,” “plan,” “predict,” “projection,” “seek,” “strategy,” “target,” “will” or other words of similar meaning. Forward-looking statements contained herein may include opinions or beliefs regarding market conditions and similar matters. In many instances, those opinions and beliefs are based upon general observations by members of our management, anecdotal evidence and our experience in the conduct of our businesses, without specific investigation or analyses. Therefore, while they reflect our view of the industries and markets in which we are involved, they should not be viewed as reflecting verifiable views or views that are necessarily shared by all who are involved in those industries or markets. These statements concern expectations, beliefs, projections, plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts.

The forward-looking statements reflect our current views about future events and are subject to risks, uncertainties and assumptions. We wish to caution readers that certain important factors may have affected and could in the future affect our actual results and could cause actual results to differ significantly from what is anticipated by our forward-looking statements.

The most important factors that could cause actual results to differ materially from those anticipated by our forward-looking statements include, but are not limited to: an extended slowdown in the real estate markets in which we have significant homebuilding activity, including a slowdown in either the market for single family homes or the multifamily rental market; changes in general economic and financial conditions that reduce demand for our products and services, lower our profit margins or reduce our access to credit; decreased demand for our homes or Multifamily rental properties; the impact of inflation or a higher interest rate environment; the potential negative impact to our business of the ongoing coronavirus (“COVID-19”) pandemic, the duration, impact and severity of which is highly uncertain; continuation of supply shortages and increased costs related to construction materials and labor; cost increases related to real estate taxes and insurance; reduced availability or increased cost of mortgage financing for homebuyers; increased interest rates or increased competition in the mortgage industry; reductions in the market value of our investments in public companies; our inability to successfully execute our strategies, including our land lighter strategy and our strategy to monetize noncore assets; our inability to acquire land at anticipated prices; the possibility that we will incur nonrecurring costs that affect earnings in one or more reporting periods; increased competition for home sales from other sellers of new and resale homes; our inability to pay down debt; government actions or other factors that might force us to terminate our program of repurchasing our stock; a decline in the

value of our land inventories and resulting write-downs of the carrying value of our real estate assets; the failure of the participants in various joint ventures to honor their commitments; difficulty obtaining land-use entitlements or construction financing; natural disasters and other unforeseen events for which our insurance does not provide adequate coverage; new laws

or regulatory changes that adversely affect the profitability of our businesses; our inability to refinance our debt on terms that are as favorable as our current arrangements; and changes in accounting conventions that adversely affect our reported earnings.

Please see our Form 10-K for the fiscal year ended November 30, 2021 and our other filings with the SEC for a further discussion of these and other risks and uncertainties which could affect our future results. We undertake no obligation, other than those imposed by securities laws, to publicly revise any forward-looking statements to reflect events or circumstances after the date of those statements or to reflect the occurrence of anticipated or unanticipated events.

Outlook

Our second quarter results demonstrated strength and excellent performance throughout the quarter. However, the weight of a rapid doubling of interest rates over six months, together with accelerated price appreciation, began to drive buyers in many markets to pause and reconsider. We began to see these effects after quarter end. Despite the pause, demand remains reasonably strong as household formation has continued to rise and buyers still have down payments and are able to qualify for mortgages. Buyers are seeking shelter and protection against inflationary pressures as scarcity of rentals drives rents higher. Owning a home with a fixed rate mortgage provides protection against annual or biennial rent increases. Although we have adjusted downward prices in some markets, even those prices remain higher than a year ago. Supply remains limited across the country and the need for affordable workforce housing continues to be at crisis levels. Production must catch up to the growing household numbers as production of dwellings over the past decade has lagged prior decades by as many as five million homes.

Although market conditions in some markets are no longer as positive as they had been, indicators that this would happen have been building since the Federal Reserve's tightening began. Given the Federal Reserve's expressed commitment to combat inflation, we can expect continued market tightening until inflation subsides. We are focused on making the changes that are necessary to stay ahead of the trend. So far in June, new orders and traffic have weakened in many of our markets due to a rapid spike in mortgage rates and headwinds from negative economic headlines. Many markets have also slowed because we have entered the seasonably slower part of the year. To maintain sales momentum, we have offered mortgage buy down programs and increased sales incentives. We have adjusted prices in various communities to the levels that are necessary to maintain reasonable sales volumes. Our price reductions have led to sales upticks, which leads us to believe there is still underlying strength in the market. With respect to our financial services business, the mortgage market has become extraordinarily competitive as refinancings have all but halted and sales of previously owned homes have declined. As a result, margins on sales of mortgages into the secondary market have been decreasing.

Although deliveries have been constrained by supply chain disruptions and an increase in labor costs, for the first time since the supply disruptions began, we saw a flattening in cycle time - the time it takes us to build a home increased by only five days over the past four months. This may signal that supply chain problems have peaked. But it also is because we and our suppliers have become much better at managing supply problems. The pace at which we are starting new homes has been constrained by delays in getting permits. We are matching our sales to our starts, rather than trying to match our starts to what we can sell. We continue to strategically acquire land, primarily through options. This continues our land-light strategy as our percentage of homesites controlled increased by May 31, 2022 to 62% from 50% in the prior year, while our years’ supply of land owned decreased to 3.1 years as compared to 3.3 years last year. We are also continuing to pay down debt as it comes due, with the next tranche maturing in November 2022, and we are continuing to repurchase our stock.

Our playbook going forward will be to use our dynamic pricing model week by week to price products to current market conditions in order to maximize pricing and margin while we maintain a carefully limited inventory level. We continue to sell our homes later in the construction cycle to maximize prices and reduce the likelihood of costs increasing after we commit to sales prices. We will continue to build and to adjust prices in order to fill the housing shortage and provide much-needed workforce housing across markets. We will continue to work to improve our SG&A leverage and we expect to drive efficiencies through technology and process improvement to offset market adjustments. We will continue to focus on cash flow and our bottom line to protect and enhance our already strong balance sheet. Finally, we expect to conclude our long-planned spin-off by year end. We have formed a company, named Quarterra Group, In. (“Quarterra”), which will have three asset management verticals - multifamily residential, single family for rent and land banking and similar land finance strategies. When it is spun off, Quarterra will remove $2.5 billion of assets from our balance sheet, without materially affecting our earnings.

We believe we are well positioned financially, organizationally and technologically to thrive in this evolving housing market. We recognize that interest rates are rising and inflation continues to be a significant headwind. It is difficult to provide the more targeted guidance that we typically offer given the uncertainty about market conditions, so we are providing broader than normal ranges in our guidance for our third quarter. We expect our new orders for the third quarter of 2022 to be in the range of 16,000 to 18,000 homes, and we anticipate our third quarter deliveries to be in the range of 17,000 to 18,500 homes. We expect gross margins to be in the range of 28.5% to 29.5, and we expect our SG&A as a percentage of home sale revenues to be between 6.0% and 6.5%. We believe we are still on track to reach our goal of 2.75 years’ land owned and 65% homesites controlled by year-end. As we look to the remainder of 2022, we recognize that there are challenges in the market to which we must pay careful attention. But there are also opportunities. We look forward to meeting the challenges and taking advantage of the opportunities to make Lennar an even stronger company in the future.

(1) Results of Operations

Overview

We historically have experienced, and expect to continue to experience, variability in quarterly results. Our results of operations for the three and six months ended May 31, 2022 are not necessarily indicative of the results to be expected for the full year. Our homebuilding business is seasonal in nature and generally reflects higher levels of new home order activity in our second and third fiscal quarters and increased deliveries in the second half of our fiscal year. However, a variety of factors can alter seasonal patterns.

Our net earnings attributable to Lennar were $1.3 billion, or $4.49 per diluted share ($4.50 per basic share), in the second quarter of 2022, compared to net earnings attributable to Lennar of $831.4 million, or $2.65 per diluted share ($2.66 per basic share), in the second quarter of 2021. Results included unrealized mark-to-market losses of $78 million in the second quarter of 2022 and unrealized mark-to-market gains of $272.6 million in the second quarter of 2021 on our publicly traded technology investments. Excluding mark-to-market losses on technology investments in both years and a gain on the sale of our residential solar business in the prior year, second quarter net earnings attributable to Lennar in 2022 were $1.4 billion, or $4.69 per diluted share, compared to second quarter net earnings attributable to Lennar in 2021 of $923.6 million, or $2.95 per diluted share.

Financial information relating to our operations was as follows:

			Three Months Ended May 31, 2022
(In thousands)			Homebuilding						Financial Services						Multifamily						Lennar Other						Corporate						Total
Revenues:
Sales of homes			$	7,963,683					—						—						—						—						7,963,683
Sales of land			7,524						—						—						—						—						7,524
Other revenues			6,775						200,166						176,021						4,527						—						387,489
Total revenues			7,977,982						200,166						176,021						4,527						—						8,358,696
Costs and expenses:
Costs of homes sold			5,610,783						—						—						—						—						5,610,783
Costs of land sold			7,815						—						—						—						—						7,815
Selling, general and administrative expenses			486,555						—						—						—						—						486,555
Other costs and expenses			—						96,231						175,152						8,236						—						279,619
Total costs and expenses			6,105,153						96,231						175,152						8,236						—						6,384,772
Equity in earnings (loss) from unconsolidated entities, Multifamily other gain and Lennar Other other income (expense), net, and other gain (loss)			4,862						—						(201)						(26,750)						—						(22,089)
Other income, net			2,720						—						—						—						—						2,720
Lennar Other unrealized losses from technology investments			—						—						—						(77,965)						—						(77,965)
Operating earnings (loss)			$	1,880,411					103,935						668						(108,424)						—						1,876,590
Corporate general and administrative expenses			—						—						—						—						105,207						105,207
Charitable foundation contribution			—						—						—						—						16,549						16,549
Earnings (loss) before income taxes			$	1,880,411					103,935						668						(108,424)						(121,756)						1,754,834

			Three Months Ended May 31, 2021
(In thousands)			Homebuilding						Financial Services						Multifamily						Lennar Other						Corporate						Total
Revenues:
Sales of homes			$	5,980,731					—						—						—						—						5,980,731
Sales of land			38,785						—						—						—						—						38,785
Other revenues			8,525						218,747						177,473						5,984						—						410,729
Total revenues			6,028,041						218,747						177,473						5,984						—						6,430,245
Costs and expenses:
Costs of homes sold			4,421,373						—						—						—						—						4,421,373
Costs of land sold			32,979						—						—						—						—						32,979
Selling, general and administrative expenses			455,164						—						—						—						—						455,164
Other costs and expenses			—						97,427						168,930						5,732						—						272,089
Total costs and expenses			4,909,516						97,427						168,930						5,732						—						5,181,605
Equity in earnings (loss) from unconsolidated entities, Multifamily other gain and Lennar Other other income (expense), net, and other gain (loss) (1)			(1,688)						—						13,854						218,276						—						230,442
Other expense, net			(4,362)						—						—						—						—						(4,362)
Lennar Other unrealized losses from technology investments			—						—						—						(272,625)						—						(272,625)
Operating earnings (loss)			$	1,112,475					121,320						22,397						(54,097)						—						1,202,095
Corporate general and administrative expenses			—						—						—						—						90,717						90,717
Charitable foundation contribution			—						—						—						—						14,493						14,493
Earnings (loss) before income taxes			$	1,112,475					121,320						22,397						(54,097)						(105,210)						1,096,885

(1) During the three months ended May 31, 2021, our Lennar Other segment realized a gain of $151.5 million on the sale of our residential solar business.

			Six Months Ended May 31, 2022
(In thousands)			Homebuilding						Financial Services						Multifamily						Lennar Other						Corporate						Total
Revenues:
Sales of homes			$	13,685,440					—						—						—						—						13,685,440
Sales of land			31,491						—						—						—						—						31,491
Other revenues (1)			13,256						376,867						443,380						11,778						—						845,281
Total revenues			13,730,187						376,867						443,380						11,778						—						14,562,212
Costs and expenses:
Costs of homes sold			9,795,647						—						—						—						—						9,795,647
Costs of land sold			36,371						—						—						—						—						36,371
Selling, general and administrative expenses			915,033						—						—						—						—						915,033
Other costs and expenses			—						182,141						438,889						13,643						—						634,673
Total costs and expenses			10,747,051						182,141						438,889						13,643						—						11,381,724
Equity in earnings (loss) from unconsolidated entities and Multifamily other gain and Lennar Other other income (expense), net, and other gain (loss)			4,576						—						1,604						(36,558)						—						(30,378)
Other expense, net			2,549						—						—						—						—						2,549
Lennar Other unrealized losses from technology investments			—						—						—						(473,135)						—						(473,135)
Operating earnings (loss)			$	2,990,261					194,726						6,095						(511,558)						—						2,679,524
Corporate general and administrative expenses			—						—						—						—						218,868						218,868
Charitable foundation contribution			—						—						—						—						29,087						29,087
Earnings (loss) before income taxes			$	2,990,261					194,726						6,095						(511,558)						(247,955)						2,431,569

(1)During the six months ended May 31, 2022 , Other revenues in our Multifamily segment included land sales to unconsolidated entities of $147.8 million.

			Six Months Ended May 31, 2021
(In thousands)			Homebuilding						Financial Services						Multifamily						Lennar Other						Corporate						Total
Revenues:
Sales of homes			$	10,871,645					—						—						—						—						10,871,645
Sales of land			86,428						—						—						—						—						86,428
Other revenues			13,024						462,816						308,916						12,884						—						797,640
Total revenues			10,971,097						462,816						308,916						12,884						—						11,755,713
Homebuilding costs and expenses:
Costs of homes sold			8,088,235						—						—						—						—						8,088,235
Costs of land sold			74,167						—						—						—						—						74,167
Selling, general and administrative			865,400						—						—						—						—						865,400
Other costs and expenses			—						195,289						299,979						9,984												505,252
Total costs and expenses			9,027,802						195,289						299,979						9,984						—						9,533,054
Equity in earnings (loss) from unconsolidated entities and Multifamily other gain and Lennar Other other income (expense), net, and other gain (loss) (1)			(6,253)						—						12,586						217,229						—						223,562
Other income, net			8,613						—						—												—						8,613
Lennar Other unrealized losses from technology investments			—						—						—						197,120						—						197,120
Operating earnings			$	1,945,655					267,527						21,523						417,249						—						2,651,954
Corporate general and administrative expenses			—						—						—						—						201,248						201,248
Charitable foundation contribution			$	—					—						—						—						26,807						26,807
Earnings (loss) before income taxes			$	1,945,655					267,527						21,523						417,249						(228,055)						2,423,899

(1) During the six months ended May 31, 2021, our Lennar Other segment realized a gain of $151.5 million on the sale of our residential solar business.

Three Months Ended May 31, 2022 versus Three Months Ended May 31, 2021

Revenues from home sales increased 33% in the second quarter of 2022 to $8.0 billion from $6.0 billion in the second quarter of 2021. Revenues were higher primarily due to a 14% increase in the number of home deliveries to 16,549 homes from 14,493 homes and a 17% increase in the average sales price to $483,000 from $414,000.

Gross margin on home sales were $2.4 billion, or 29.5%, in the second quarter of 2022, compared to $1.6 billion, or 26.1%, in the second quarter of 2021. During the second quarter of 2022, an increase in revenues per square foot was offset by an increase in costs per square foot primarily due to higher material and labor costs. Overall, gross margins improved year over year as land costs remained relatively flat while interest expense decreased as a result of our focus on reducing debt.

Selling, general and administrative expenses were $486.6 million in the second quarter of 2022, compared to $455.2 million in the second quarter of 2021. As a percentage of revenues from home sales, selling, general and administrative expenses improved to 6.1% in the second quarter of 2022, from 7.6% in the second quarter of 2021. This was the lowest percentage for a second quarter in our history primarily due to a decrease in broker commissions and the benefits of our technology efforts.

Operating earnings for our Financial Services segment were $103.9 million in the second quarter of 2022, compared to $121.3 million in the second quarter of 2021. The decrease in operating earnings was primarily due to lower mortgage net margins driven by a more competitive mortgage market, partially offset by an increase in rate lock volume and an increase in profit per order in our title business.

Operating earnings for our Multifamily segment were $0.7 million in the second quarter of 2022, compared to $22.4 million in the second quarter of 2021. Operating loss for our Lennar Other segment was $108.4 million in the second quarter of 2022, compared to $54.1 million in the second quarter of 2021. Lennar Other operating loss in the second quarter of 2022 was primarily due to mark-to-market losses on our publicly traded technology investments. Lennar Other operating loss in the second quarter of 2021 was primarily due to mark-to-market losses on our publicly traded technology investments, partially offset by the gain on the sale of our residential solar business.

Six Months Ended May 31, 2022 versus Six Months Ended May 31, 2021

Revenues from home sales increased 26% in the six months ended May 31, 2022 to $13.7 billion from $10.9 billion in the six months ended May 31, 2021. Revenues were higher primarily due to a 9% increase in the number of home deliveries to 29,087 from 26,807 and a 16% increase in the average sales price to $472,000 from $406,000.

Gross margin on home sales were $3.9 billion, or 28.4%, in the six months ended May 31, 2022, compared to $2.8 billion, or 25.6%, in the six months ended May 31, 2021. During the six months ended May 31, 2022, an increase in revenues per square foot was offset by an increase in costs per square foot primarily due to higher material and labor costs. Overall, gross margins improved year over year as land costs remained relatively flat while interest expense decreased as a result of our focus on reducing debt.

Selling, general and administrative expenses were $915.0 million in the six months ended May 31, 2022, compared to $865.4 million in the six months ended May 31, 2021. As a percentage of revenues from home sales, selling, general and administrative expenses improved to 6.7% in the six months ended May 31, 2022, from 8.0% in the six months ended May 31, 2021. The improvement was primarily due to a decrease in broker commissions and the benefits of our technology efforts.

Operating earnings for our Financial Services segment were $194.7 million in the six months ended May 31, 2022, compared to $267.5 million in the six months ended May 31, 2021. The decrease in operating earnings was primarily due to lower mortgage net margins driven by a more competitive mortgage market, partially offset by an increase in rate lock volume.

Operating earnings for our Multifamily segment were $6.1 million in the six months ended May 31, 2022, compared to $21.5 million in the six months ended May 31, 2021. Operating loss for our Lennar Other segment was $511.6 million in the six months ended May 31, 2022, compared to operating earnings of $417.2 million in the six months ended May 31, 2021. Lennar Other operating loss for the six months ended May 31, 2022 was primarily due to mark-to-market losses on our publicly traded technology investments. Lennar Other operating earnings for the six months ended May 31, 2021 was primarily due to mark-to-market unrealized gains on our publicly traded technology investments and the gain on the sale of our residential solar business.

For the six months ended May 31, 2022 and 2021, we had a tax provision of $599.7 million and $570.2 million, respectively, which resulted in an overall effective income tax rate of 24.7% and 23.7%, respectively. The overall effective income tax rate was higher in 2022 primarily due to the expiration of the new energy efficient home tax credit.

Homebuilding Segments

At May 31, 2022, our reportable Homebuilding segments and Homebuilding Other are outlined in Note 2 of the Notes to Condensed Consolidated Financial Statements. The following tables set forth selected financial and operational information related to our homebuilding operations for the periods indicated:

Selected Financial and Operational Data

			Three Months Ended May 31, 2022
			Gross Margins																		Operating Earnings (Loss)
($ in thousands)			Sales of Homes Revenue						Costs of Sales of Homes						Gross Margin %						Net Margins on Sales of Homes (1)						Gross Margins (Loss) on Sales of Land						Other Revenue						Equity in Earnings (Loss) from Unconsolidated Entities						Other Income (Expense), net						Operating Earnings (Loss)
East			$	2,209,967					1,510,758						31.6		%				546,589						(619)						1,195						(659)						7,313						553,819
Central			1,283,763						981,832						23.5		%				206,893						—						226						302						(626)						206,795
Texas			1,093,533						747,861						31.6		%				272,934						473						255						—						(805)						272,857
West			3,367,261						2,360,554						29.9		%				846,340						(145)						678						2,571						(1,595)						847,849
Other (2)			9,159						9,778						(6.8)		%				(6,411)						—						4,421						2,648						(1,567)						(909)
Totals			$	7,963,683					5,610,783						29.5		%				1,866,345						(291)						6,775						4,862						2,720						1,880,411

			Three Months Ended May 31, 2021
			Gross Margins																		Operating Earnings (Loss)
($ in thousands)			Sales of Homes Revenue						Costs of Sales of Homes						Gross Margin %						Net Margins on Sales of Homes (1)						Gross Margins on Sales of Land						Other Revenue						Equity in Earnings (Loss) from Unconsolidated Entities						Other Income (Expense), net						Operating Earnings (Loss)
East			$	1,551,030					1,115,010						28.1		%				307,978						1,335						1,768						(59)						(1,195)						309,827
Central			1,093,190						846,427						22.6		%				157,429						774						579						317						(51)						159,048
Texas			790,391						551,067						30.3		%				173,803						1,837						562						387						(532)						176,057
West			2,543,263						1,893,148						25.6		%				491,223						1,860						1,311						(921)						(662)						492,811
Other (2)			2,857						15,721						(450.3)		%				(26,239)						—						4,305						(1,412)						(1,922)						(25,268)
Totals			$	5,980,731					4,421,373						26.1		%				1,104,194						5,806						8,525						(1,688)						(4,362)						1,112,475

			Six Months Ended May 31, 2022
			Gross Margins																		Operating Earnings (Loss)
($ in thousands)			Sales of Homes Revenue						Costs of Sales of Homes						Gross Margin %						Net Margins on Sales of Homes (1)						Gross Margins (Loss) on Sales of Land						Other Revenue						Equity in Earnings (Loss) from Unconsolidated Entities						Other Income (Expense), net						Operating Earnings (Loss)
East			$	3,872,958					2,687,311						30.6		%				898,143						(6,293)						1,992						(2,017)						13,989						905,814
Central			2,389,693						1,852,445						22.5		%				357,268						1,619						460						431						(905)						358,873
Texas			1,899,163						1,321,703						30.4		%				442,875						2,871						497						—						(2,074)						444,169
West			5,509,465						3,918,290						28.9		%				1,290,864						(984)						1,559						2,707						(4,849)						1,289,297
Other (2)			14,161						15,898						(12.3)		%				(14,390)						(2,093)						8,748						3,455						(3,612)						(7,892)
Totals			$	13,685,440					9,795,647						28.4		%				2,974,760						(4,880)						13,256						4,576						2,549						2,990,261

			Six Months Ended May 31, 2021
			Gross Margins																		Operating Earnings (Loss)
($ in thousands)			Sales of Homes Revenue						Costs of Sales of Homes						Gross Margin %						Net Margins on Sales of Homes (1)						Gross Margins on Sales of Land						Other Revenue						Equity in Earnings (Loss) from Unconsolidated Entities						Other Income (Expense), net						Operating Earnings (Loss)
East			$	2,898,641					2,103,873						27.4		%				549,512						6,411						3,186						(551)						13,352						571,910
Central			2,019,628						1,559,973						22.8		%				289,528						751						984						415						(607)						291,071
Texas			1,426,801						1,002,264						29.8		%				302,964						2,871						820						541						(1,496)						305,700
West			4,520,071						3,400,875						24.8		%				809,213						2,228						2,361						41						674						814,517
Other (2)			6,504						21,250						(226.7)		%				(33,207)						—						5,673						(6,699)						(3,310)						(37,543)
Totals			$	10,871,645					8,088,235						25.6		%				1,918,010						12,261						13,024						(6,253)						8,613						1,945,655

(1)Net margins on sales of homes include selling, general and administrative expenses.

(2)Negative gross and net margins were due to period costs and impairments in Urban divisions that impact costs of homes sold without sufficient sales of homes revenue to offset those costs.

Summary of Homebuilding Data

Deliveries:

			Three Months Ended
			Homes												Dollar Value (In thousands)												Average Sales Price
			May 31,												May 31,												May 31,
			2022						2021						2022						2021						2022						2021
East			5,198						4,480						$	2,225,725					1,560,934						$	428,000					348,000
Central			2,944						2,761						1,283,763						1,093,190						436,000						396,000
Texas			3,288						2,747						1,093,533						790,391						333,000						288,000
West			5,110						4,502						3,367,261						2,543,263						659,000						565,000
Other			9						3						9,159						2,857						1,018,000						952,000
Total			16,549						14,493						$	7,979,441					5,990,635						$	483,000					414,000

Of the total homes delivered listed above, 44 homes with a dollar value of $15.8 million and an average sales price of $358,000 represent home deliveries from unconsolidated entities for the three months ended May 31, 2022, compared to 31 home deliveries with a dollar value of $9.9 million and an average sales price of $319,000 for the three months ended May 31, 2021.

			Six Months Ended
			Homes												Dollar Value (In thousands)												Average Sales Price
			May 31,												May 31,												May 31,
			2022						2021						2022						2021						2022						2021
East			9,280						8,400						$	3,898,097					2,912,235						$	420,000					347,000
Central			5,465						5,180						2,389,692						2,019,628						437,000						390,000
Texas			5,825						5,096						1,899,163						1,426,802						326,000						280,000
West			8,502						8,124						5,509,465						4,520,071						648,000						556,000
Other			15						7						14,161						6,504						944,000						929,000
Total			29,087						26,807						$	13,710,578					10,885,240						$	472,000					406,000

Of the total homes delivered listed above, 69 homes with a dollar value of $25.1 million and an average sales price of $364,000 represent home deliveries from unconsolidated entities for the six months ended May 31, 2022, compared to 43 home deliveries with a dollar value of $13.6 million and an average sales price of $316,000 for the six months ended May 31, 2021.

New Orders (1):

			Three Months Ended
			Active Communities												Homes												Dollar Value (In thousands)												Average Sales Price
			May 31,												May 31,												May 31,												May 31,
			2022						2021						2022						2021						2022						2021						2022						2021
East			354						351						5,973						5,351						$	2,753,770					1,987,929						$	461,000					372,000
Central			315						297						3,576						3,416						1,663,354						1,399,730						465,000						410,000
Texas			205						232						3,375						3,250						1,189,263						1,000,013						352,000						308,000
West			348						342						4,858						5,135						3,482,679						3,172,569						717,000						618,000
Other			3						3						10						5						9,203						5,146						920,000						1,029,000
Total			1,225						1,225						17,792						17,157						$	9,098,269					7,565,387						$	511,000					441,000

Of the total homes listed above, 60 homes with a dollar value of $30.8 million and an average sales price of $514,000 represent homes in seven active communities from unconsolidated entities for the three months ended May 31, 2022, compared to 32 homes with a dollar value of $9.9 million and an average sales price of $373,000 in four active communities for the three months ended May 31, 2021.

			Six Months Ended
			Homes												Dollar Value (In thousands)												Average Sales Price
			May 31,												May 31,												May 31,
			2022						2021						2022						2021						2022						2021
East			10,883						10,165						$	4,886,826					3,688,041						$	449,000					363,000
Central			6,688						6,742						3,065,492						2,733,356						458,000						405,000
Texas			6,141						6,025						2,111,048						1,812,182						344,000						301,000
West			9,812						9,787						6,818,611						5,864,964						695,000						599,000
Other			15						8						13,831						8,121						922,000						1,015,000
Total			33,539						32,727						$	16,895,808					14,106,664						$	504,000					431,000

Of the total new orders listed above, 104 homes with a dollar value of $48.2 million and an average sales price of $463,000 represent new orders from unconsolidated entities for the six months ended May 31, 2022, compared to 67 new orders with a dollar value of $23.5 million and an average sales price of $351,000 for the six months ended May 31, 2021.

(1)Homes represent the number of new sales contracts executed with homebuyers, net of cancellations, during the three and six months ended May 31, 2022 and 2021.

Backlog:

			At
			Homes												Dollar Value (In thousands)												Average Sales Price
			May 31,												May 31,												May 31,
			2022						2021						2022						2021						2022						2021
East			9,882						7,778						$	4,566,295					3,086,740						$	462,000					397,000
Central			6,381						5,933						3,010,596						2,475,900						472,000						417,000
Texas			4,582						3,752						1,665,155						1,209,965						363,000						322,000
West			7,775						7,275						5,444,307						4,258,324						700,000						585,000
Other			4						3						3,611						3,465						903,000						1,155,000
Total			28,624						24,741						$	14,689,964					11,034,394						$	513,000					446,000

Of the total homes in backlog listed above, 114 homes with a backlog dollar value of $51.7 million and an average sales price of $453,000 represent the backlog from unconsolidated entities at May 31, 2022, compared to 62 homes with a backlog dollar value of $21.4 million and an average sales price of $345,000 at May 31, 2021. During the six months ended May 31, 2022, we acquired 347 homes and 54 homes in backlog in the East and Central Homebuilding segment, respectively.

Backlog represents the number of homes under sales contracts. Homes are sold using sales contracts, which are generally accompanied by sales deposits. In some instances, purchasers are permitted to cancel sales if they fail to qualify for financing or under certain other circumstances. Various state and federal laws and regulations may sometimes give purchasers a right to cancel homes in backlog. We do not recognize revenue on homes under sales contracts until the sales are closed and title passes to the new homeowners.

Three Months Ended May 31, 2022 versus Three Months Ended May 31, 2021

Homebuilding East: Revenues from home sales increased in the second quarter of 2022 compared to the second quarter of 2021, primarily due to an increase in the number of home deliveries in all the states in the segment except in New Jersey and an increase in the average sales price of homes delivered in all the states of the segment. The increase in the number of home deliveries was primarily driven by an increase in the number of active communities. The decrease in the number of home deliveries in New Jersey was primarily due to a decrease in the number of active communities due to the timing of opening and

closing of communities as a result of supply chain disruptions. The increase in the average sales price of homes delivered was primarily due to favorable market conditions. In the second quarter of 2022, an increase in revenues per square foot was partially offset by an increase in costs per square foot primarily due to higher material and labor costs. Overall, gross margin percentage on home deliveries improved year over year as land costs remained relatively flat.

Homebuilding Central: Revenues from home sales increased in the second quarter of 2022 compared to the second quarter of 2021, primarily due to an increase in the number of home deliveries in all the states in the segment except in North Carolina and Virginia, and an increase in the average sales price of homes delivered in all the states in the segment except in Georgia, Maryland and Tennessee. The increase in the number of home deliveries was primarily driven by an increase in active communities. The decrease in the number of home deliveries in North Carolina and Virginia was primarily due to a decrease in the number of deliveries per active community due to the timing of opening and closing of communities as a result of supply chain disruptions. The increase in the average sales price of homes delivered was primarily due to favorable market conditions. The decrease in the average sales price of homes delivered in Georgia, Maryland and Tennessee was primarily driven by a change in product mix due to a higher percentage of deliveries in lower-priced communities. In the second quarter of 2022, an increase in revenues per square foot was offset by an increase in costs per square foot primarily due to higher material and labor costs. Overall, gross margin percentage on home deliveries improved year over year as land costs remained relatively flat.

Homebuilding Texas: Revenues from home sales increased in the second quarter of 2022 compared to the second quarter of 2021, primarily due to an increase in the number of home deliveries and an increase in the average sales price of homes delivered. The increase in the number of home deliveries was primarily driven by an increase in deliveries per active community over the same period last year. The increase in the average sales price of homes delivered was primarily due to favorable market conditions. In the second quarter of 2022, an increase in revenues per square foot was offset by an increase in costs per square foot primarily due to higher material and labor costs. Overall, gross margin percentage on home deliveries improved year over year as land costs remained relatively flat.

Homebuilding West: Revenues from home sales increased in the second quarter of 2022 compared to the second quarter of 2021, primarily due to an increase in the number of home deliveries in all the states in the segment except in Utah, and an increase in the average sales price of homes delivered in all the states in the segment. The increase in the number of home deliveries was primarily driven by an increase in deliveries per active community over the same period last year. The decrease in the number of home deliveries in Utah was primarily due to a decrease in the number of deliveries per active community due to the timing of opening and closing of communities as a result of supply chain disruptions. The increase in the average sales price of homes delivered was primarily due to favorable market conditions. In the second quarter of 2022, an increase in revenues per square foot was offset by an increase in costs per square foot primarily due to higher material and labor costs. Overall, gross margin percentage on home deliveries improved year over year as land costs remained relatively flat.

Six Months Ended May 31, 2022 versus Six Months Ended May 31, 2021

Homebuilding East: Revenues from home sales increased in the six months ended May 31, 2022 compared to the six months ended May 31, 2021, primarily due to an increase in the number of home deliveries and an increase the average sales price of homes delivered in all the states in the segment. The increase in the number of home deliveries was primarily driven by an increase in the number of active communities. The increase in the average sales price of homes delivered was primarily due to favorable market conditions. In the six months ended May 31, 2022, an increase in revenues per square foot was partially offset by an increase in costs per square foot primarily due to higher material and labor costs. Overall, gross margin percentage on home deliveries improved year over year as land costs remained relatively flat.

Homebuilding Central: Revenues from home sales increased in the six months ended May 31, 2022 compared to the six months ended May 31, 2021, primarily due to an increase in the number of home deliveries in all the states in the segment except in North Carolina and Virginia, and an increase in the average sales price of homes delivered in all the states of the segment except in Georgia and Tennessee. The increase in the number of home deliveries was primarily driven by an increase in active communities. The decrease in the number of home deliveries in North Carolina and Virginia was primarily due to a decrease in the number of deliveries per active community due to the timing of opening and closing of communities as a result of supply chain disruptions. The increase in the average sales price of homes delivered was primarily due to favorable market conditions. The decrease in the average sales price of homes delivered in Georgia and Tennessee was primarily driven by a change in product mix due to a higher percentage of deliveries in lower-priced communities. In the six months ended May 31, 2022, an increase in revenues per square foot was less than offset by an increase in costs per square foot primarily due to higher material and labor costs. Overall, gross margin percentage on home deliveries was slightly down year over year while land costs remained relatively flat.

Homebuilding Texas: Revenues from home sales increased in the six months ended May 31, 2022 compared to the six months ended May 31, 2021, primarily due to an increase in the number of home deliveries and an increase in the average sales price of homes delivered. The increase in the number of home deliveries was primarily driven by an increase in deliveries per active community over the same period last year. The increase in the average sales price of homes delivered was primarily due

to favorable market conditions. In the six months ended May 31, 2022, an increase in revenues per square foot was offset by an increase in costs per square foot primarily due to higher material and labor costs. Overall, gross margin percentage on home deliveries improved year over year as land costs remained relatively flat.

Homebuilding West: Revenues from home sales increased in the six months ended May 31, 2022 compared to the six months ended May 31, 2021, primarily due to an increase in the number of home deliveries in all the states in the segment except in Arizona, Nevada and Utah, and an increase in the average sales price of homes delivered in all the states in the segment. The decrease in the number of home deliveries in Arizona, Nevada and Utah was primarily due to a decrease in the number of deliveries per active community due to the timing of opening and closing of communities as a result of supply chain disruptions. The increase in the average sales price of homes delivered was primarily due to favorable market conditions. In the six months ended May 31, 2022, an increase in revenues per square foot was offset by an increase in costs per square foot primarily due to higher material and labor costs. Overall, gross margin percentage on home deliveries improved year over year as land costs remained relatively flat.Financial Services Segment

Our Financial Services reportable segment provides mortgage financing, title and closing services primarily for buyers of our homes. The segment also originates and sells into securitizations commercial mortgage loans through its LMF Commercial business. Our Financial Services segment sells substantially all of the residential loans it originates within a short period in the secondary mortgage market, the majority of which are sold on a servicing released, non-recourse basis. After the loans are sold, we retain potential liability for possible claims by purchasers that we breached certain limited industry-standard representations and warranties in the loan sale agreements.

The following table sets forth selected financial and operational information related to the residential mortgage and title activities of our Financial Services segment:

			Three Months Ended												Six Months Ended
			May 31,												May 31,
(Dollars in thousands)			2022						2021						2022						2021
Dollar value of mortgages originated			$	3,507,000					3,186,000						6,267,000						5,947,000
Number of mortgages originated			9,200						9,500						16,500						17,900
Mortgage capture rate of Lennar homebuyers			69		%				74		%				71		%				75		%
Number of title and closing service transactions			17,400						17,100						31,100						32,100

At May 31, 2022 and November 30, 2021, the carrying value of Financial Services' commercial mortgage-backed securities ("CMBS") was $155.8 million and $157.8 million, respectively. Details of these securities and related debt are within Note 2 of the Notes to Condensed Consolidated Financial Statements.

Multifamily Segment

We have been actively involved, primarily through unconsolidated funds and joint ventures, in the development, construction and property management of multifamily rental properties. Our Multifamily segment focuses on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S. markets.

The following tables provide information related to our investment in the Multifamily segment:

Balance Sheets
(In thousands)			May 31, 2022						November 30, 2021
Multifamily investments in unconsolidated entities			$	638,559					654,029
Lennar's net investment in Multifamily			934,022						976,676

Statement of Operations			Three Months Ended												Six Months Ended
			May 31,												May 31,
(Dollars in thousands)			2022						2021						2022						2021
Number of operating properties/investments sold through joint ventures			—						1						—						1
Lennar's share of gains on the sale of operating properties/investments			$	—					14,784						—						14,784

Lennar Other Segment

Lennar Other primarily includes strategic investments in technology companies, primarily managed by our LENX subsidiary, and fund interests we retained when we sold the Rialto Capital Management ("Rialto") asset and investment management platform in 2018. At May 31, 2022 and November 30, 2021, we had $1.0 billion and $1.5 billion, respectively, of assets in our Lennar Other segment, which included investments in unconsolidated entities of $325.3 million and $346.3 million, respectively. The investments in equity securities of Blend Labs, Inc. ("Blend Labs"), Hippo Holdings, Inc. ("Hippo"), Opendoor, Inc. ("Opendoor"), SmartRent, Inc. ("SmartRent"), Sonder Holdings, Inc. ("Sonder"), and Sunnova Energy International, Inc. ("Sunnova") are held at market and will therefore change depending on the value of our share holdings in those entities on the last day of each quarter. The following is a detail of Lennar Other unrealized gains (losses) from technology investments:

			Three Months Ended												Six Months Ended
			May 31,												May 31,
(In thousands)			2022						2021						2022						2021
Blend Labs (BLND) mark-to-market			$	(13,550)					—						(20,992)						—
Hippo (HIPO) mark-to-market			(37,946)						—						(162,403)						—
Opendoor (OPEN) mark-to-market			(20,999)						(234,290)						(164,360)						235,455
SmartRent (SMRT) mark-to-market			(3,950)						—						(48,313)						—
Sonder (SOND) mark-to-market			(1,626)						—						(2,132)						—
Sunnova (NOVA) mark-to-market			106						(38,335)						(74,935)						(38,335)
Lennar Other unrealized gains (losses) from technology investments			$	(77,965)					(272,625)						(473,135)						197,120

(2) Financial Condition and Capital Resources

At May 31, 2022, we had cash and cash equivalents and restricted cash related to our homebuilding, financial services, multifamily and other operations of $1.6 billion, compared to $3.0 billion at November 30, 2021 and $2.8 billion at May 31, 2021.

We finance all of our activities, including homebuilding, financial services, multifamily, other and general operating needs, primarily with cash generated from our operations, debt issuances and cash borrowed under our warehouse lines of credit and our unsecured revolving credit facility (the "Credit Facility"). At May 31, 2022, we had $1.3 billion of homebuilding cash and cash equivalents and no outstanding borrowings under our $2.575 billion revolving credit facility, thereby providing $3.9 billion of available capacity.

Operating Cash Flow Activities

During the six months ended May 31, 2022 and 2021, cash provided by operating activities totaled $53 million and $718 million, respectively. During the six months ended May 31, 2022, cash provided by operating activities was impacted primarily by our net earnings, gross of Lennar Other mark-to-market loss on our publicly trade technology investments and other loss of $483 million, a decrease in loans held-for-sale of $336 million primarily related to the sale of loans originated by our Financial Services segment, an increase in accounts payable and other liabilities of $277 million and a decrease in receivables of $126 million primarily related to a decrease in Financial Services' receivables, net, which are loans sold to investors for which we have not been paid. This was partially offset by an increase in inventories due to strategic land purchases, land development and construction costs of $3.1 billion.

During the six months ended May 31, 2021, cash provided by operating activities was impacted primarily by our net earnings, a decrease in loans held-for-sale of $444 million primarily related to the sale of loans originated by our Financial Services segment, an increase in accounts payable and other liabilities of $185 million, and a decrease in receivables of $118 million, partially offset by an increase in inventories due to strategic land purchases, and land development and construction costs of $1.6 billion.

Investing Cash Flow Activities

During the six months ended May 31, 2022 and 2021, cash used in investing activities totaled $65 million and $50 million, respectively. During the six months ended May 31, 2022, our cash used in investing activities was primarily due to cash contributions of $261 million to unconsolidated entities, which included (1) $197 million to Homebuilding unconsolidated entities (2) $53 million to Lennar Other unconsolidated entities and (3) $11 million to Multifamily unconsolidated entities. In addition, we had $79 million of purchases of investment securities related to strategic technology investments included in the Lennar Other segment. This was partially offset by distributions of capital from unconsolidated entities of $239 million, which primarily included (1) $156 million from Multifamily unconsolidated entities, (2) $67 million from Homebuilding unconsolidated entities, and (3) $16 million from our Lennar Other unconsolidated entities.

During the six months ended May 31, 2021, our cash used in investing activities was primarily due to cash contributions of $282 million to unconsolidated entities, which included (1) $178.6 million to Homebuilding unconsolidated entities, (2) $57.8 million to Multifamily unconsolidated entities, and (3) $45.8 million to the strategic technology investments included in the Lennar Other segment. This was partially offset by distributions of capital from unconsolidated entities of $231.5 million, which primarily included (1) $134.2 million from Homebuilding unconsolidated entities, (2) $80.1 million from Multifamily unconsolidated entities, and (3) $17.2 million from the unconsolidated Rialto real estate funds included in our Lennar Other segment.

Financing Cash Flow Activities

During the six months ended May 31, 2022 and 2021, cash used in financing activities totaled $1.4 billion and $818 million, respectively. During the six months ended May 31, 2022, cash used in financing activities was primarily due to (1) $404 million of net repayments under our Financial Services' warehouse facilities, which included the LMF Commercial warehouse repurchase facilities; (2) $906 million of repurchases of our common stock, which included $847 million of repurchases under our repurchase program and $58 million of repurchases related to our equity compensation plan; and (3) $221 million of dividend payments. These were partially offset by $210 million of net proceeds from liabilities related to consolidated inventory not owned due to activity with land banks.

During the six months ended May 31, 2021, cash used in financing activities was primarily impacted by (1) $535.7 million of net repayments under our Financial Services' warehouse facilities, which included the LMF Commercial warehouse repurchase facilities; (2) $156.3 million of dividend payments; and (3) repurchases of our common stock for $173.6 million, which included $141.6 million of repurchases under our repurchase program and $32.1 million of repurchases related to our equity compensation plan. These were partially offset by $301.9 million of proceeds from liabilities related to consolidated inventory not owned due to land sales to land banks.

Debt to total capital ratios are financial measures commonly used in the homebuilding industry and are presented to assist in understanding the leverage of our homebuilding operations. Homebuilding debt to total capital and net Homebuilding debt to total capital are calculated as follows:

(Dollars in thousands)			May 31, 2022						November 30, 2021						May 31, 2021
Homebuilding debt			$	4,645,791					4,652,338						5,894,342
Stockholders’ equity			21,598,255						20,816,425						19,576,108
Total capital			$	26,244,046					25,468,763						25,470,450
Homebuilding debt to total capital			17.7		%				18.3		%				23.1		%
Homebuilding debt			$	4,645,791					4,652,338						5,894,342
Less: Homebuilding cash and cash equivalents			1,314,741						2,735,213						2,581,583
Net Homebuilding debt			$	3,331,050					1,917,125						3,312,759
Net Homebuilding debt to total capital (1)			13.4		%				8.4		%				14.5		%

(1)Net homebuilding debt to total capital is a non-GAAP financial measure defined as net homebuilding debt (homebuilding debt less homebuilding cash and cash equivalents) divided by total capital (net homebuilding debt plus stockholders' equity). We believe the ratio of net homebuilding debt to total capital is a relevant and a useful financial measure to investors in understanding the leverage employed in homebuilding operations. However, because net homebuilding debt to total capital is not calculated in accordance with GAAP, this financial measure should not be considered in isolation or as an alternative to financial measures prescribed by GAAP. Rather, this non-GAAP financial measure should be used to supplement our GAAP results.

At May 31, 2022, Homebuilding debt to total capital was lower compared to November 30, 2021, primarily as a result of an increase in stockholders' equity due to net earnings, partially offset by share repurchases. At May 31, 2022, Homebuilding debt to total capital was lower compared to May 31, 2021, primarily as a result of a decrease in Homebuilding debt due to debt pay downs and an increase in stockholders' equity due to net earnings, partially offset by share repurchases.

We are continually exploring various types of transactions to manage our leverage and liquidity positions, take advantage of market opportunities and increase our revenues and earnings. These transactions may include the issuance of additional indebtedness, the repurchase of our outstanding indebtedness, the repurchase of our common stock, the acquisition of homebuilders and other companies, the purchase or sale of assets or lines of business, the issuance of common stock or securities convertible into shares of common stock, and/or the pursuit of other financing alternatives. In connection with some of our non-homebuilding businesses, we are also considering other types of transactions such as sales, restructurings, joint ventures, spin-offs or initial public offerings as we continue to move back towards being a pure play homebuilding company.

We have announced an intention to spin-off to our stockholders our asset management businesses (Lennar Multifamily and Lennar Single Family Rental) and some of our other non-core assets. We expect the spin-off to take place by the end of 2022.

Our Homebuilding senior notes and other debts payable as well as letters of credit and surety bonds are summarized within Note 7 of the Notes to Condensed Consolidated Financial Statements. Our Homebuilding average debt outstanding and the average rates of interest was as follows:

			Six Months Ended
			May 31,
(Dollars in thousands)			2022						2021
Homebuilding average debt outstanding			$	5,087,360					$	5,981,490
Average interest rate			4.6		%				4.9		%
Interest incurred			$	121,732					142,517

In May 2022, we amended the credit agreement governing our unsecured revolving credit facility (the “Credit Facility") to increase the commitment from $2.5 billion to $2.575 billion and extended the maturity to May 2027, except for $350 million which matures in April 2024. The Credit Facility has a $425 million accordion feature, subject to additional commitments, thus the maximum borrowings are $3.0 billion. The proceeds available under the Credit Facility, which are subject to specified conditions for borrowing, may be used for working capital and general corporate purposes. The credit agreement also provides that up to $500 million in commitments may be used for letters of credit. Under our Credit Facility agreement, we are required to maintain a minimum consolidated tangible net worth, a maximum leverage ratio and either a liquidity or an interest coverage ratio. These ratios are calculated per the Credit Facility agreement, which involves adjustments to GAAP financial measures. We believe we were in compliance with our debt covenants as of May 31, 2022. The following summarizes our debt covenant requirements and our actual levels or ratios with respect to those covenants as calculated per the Credit Facility agreement as of May 31, 2022:

(Dollars in thousands)			Covenant Level						Level Achieved as of May 31, 2022
Minimum net worth test			$	10,919,391					15,123,049
Maximum leverage ratio			65.0		%				19.5		%
Liquidity test			1.00						15.15

Financial Services Warehouse Facilities

Our Financial Services segment uses the residential warehouse facilities to finance its residential lending activities until the mortgage loans are sold to investors and the proceeds are collected. The facilities are non-recourse to us and are expected to be renewed or replaced with other facilities when they mature. The LMF Commercial facilities finance LMF Commercial loan origination and securitization activities and were secured by up to an 80% interest in the originated commercial loans financed. These facilities and the related borrowings and collateral are detailed in Note 2 of the Notes to Condensed Consolidated Financial Statements.

Changes in Capital Structure

In October 2021, the Board of Directors authorized an increase to our stock repurchase program to enable us to repurchase up to the lesser of an additional $1 billion in value, or 25 million in shares, of our outstanding Class A or Class B common stock. As a result of prior authorizations being almost exhausted, in March 2022, our Board of Directors approved an additional authorization for us to repurchase up to the lesser of $2 billion in value, or 30 million in shares, of our outstanding Class A or Class B common stock. The repurchase authorization has no expiration date. The details of our Class A and Class B common stock repurchases under the authorized repurchase programs for the three and six months ended May 31, 2022 and 2021 are included in Note 4 of the Notes to Condensed Consolidated Financial Statements.

During the six months ended May 31, 2022, treasury stock decreased due to our retirement of 46.7 million and 2.8 million treasury shares of Class A and Class B common stock, respectively, as authorized by our Board of Directors. The retirement of Class A and Class B common stock in treasury resulted in a reclass between treasury shares and additional paid-in capital within stockholders' equity. This decrease in treasury shares was partially offset by our repurchase of 8.2 million and 1.1 million shares of Class A and Class B common stock, respectively, through our stock repurchase program. During the six months ended May 31, 2021, treasury shares increased due to our repurchase of 1.9 million shares of Class A and Class B common stock primarily due to our repurchase of 1.5 million shares of Class A and Class B common stock through our stock repurchase program.

On June 22, 2022, our Board of Directors declared a quarterly cash dividend of $0.375 per share on both our Class A and Class B common stock, payable on July 21, 2022 to holders of record at the close of business on July 7, 2022. On May 10, 2022, we paid cash dividends of $0.375 per share on both our Class A and Class B common stock to holders of record at the close of business on April 26, 2022, as declared by our Board of Directors on April 12, 2022. We approved and paid cash dividends of $0.250 per share for each of the four quarters of 2021 on both its Class A and Class B common stock.

Based on our current financial condition and credit relationships, we believe that our operations and borrowing resources will provide for our current and long-term capital requirements at our anticipated levels of activity.

Supplemental Financial Information

Currently, certain of our 100% owned subsidiaries, which are primarily homebuilding subsidiaries, are guaranteeing all our senior notes. The guarantees are full and unconditional.

The indentures governing our senior notes require that, if any of our 100% owned subsidiaries, other than our finance company subsidiaries and foreign subsidiaries, directly or indirectly guarantee at least $75 million principal amount of debt of Lennar Corporation (other than senior notes), those subsidiaries must also guarantee Lennar Corporation’s obligations with regard to its senior notes. Included in the following tables as part of “Obligors” together with Lennar Corporation are subsidiary entities that are not finance company subsidiaries or foreign subsidiaries and were guaranteeing the senior notes because at May 31, 2022 they were guaranteeing Lennar Corporation's letter of credit facilities and its Credit Facility, disclosed in Note 7 of the Notes to Condensed Consolidated Financial Statements. The guarantees are full, unconditional and joint and several and the guarantor subsidiaries are 100% directly or indirectly owned by Lennar Corporation. A subsidiary's guarantee of Lennar senior notes will be suspended at any time when it is not directly or indirectly guaranteeing at least $75 million principal amount of debt of Lennar Corporation (other than senior notes), and 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.

Supplemental information for the Obligors, which excludes non-guarantor subsidiaries and intercompany transactions, at May 31, 2022 is included in the following tables. Intercompany balances and transactions within the Obligors have been eliminated and amounts attributable to the Obligors' investment in consolidated subsidiaries that have not issued or guaranteed the senior notes have been excluded. Amounts due from and transactions with nonobligor subsidiaries and related parties are separately disclosed:

(In thousands)			May 31, 2022						November 30, 2021
Due from non-guarantor subsidiaries			$	15,629,491					4,187,044
Equity method investments			1,031,783						937,920
Total assets			34,808,404						30,750,296
Total liabilities			9,990,538						9,631,796

			Six Months Ended
(In thousands)			May 31, 2022
Total revenues			$	12,489,613
Operating earnings			2,719,162
Earnings before income taxes			2,475,436
Net earnings attributable to Lennar			1,862,647

Off-Balance Sheet Arrangements

Homebuilding: Investments in Unconsolidated Entities

As of May 31, 2022, we had equity investments in 47 active homebuilding and land unconsolidated entities (of which three had recourse debt, 14 had non-recourse debt and 30 had no debt) compared to 41 active homebuilding and land unconsolidated entities at November 30, 2021. Historically, we have invested in unconsolidated entities that acquired and developed land (1) for our homebuilding operations or for sale to third parties or (2) for the construction of homes for sale to third-party homebuyers. Through these entities, we have primarily sought to reduce and share our risk by limiting the amount of our capital invested in land, while obtaining access to potential future homesites and allowing us to participate in strategic ventures. The use of these entities also, in some instances, has enabled us to acquire land to which we could not otherwise obtain access, or could not obtain access on as favorable terms, without the participation of a strategic partner. Participants in these joint ventures have been land owners/developers, other homebuilders and financial or strategic partners. Joint ventures with land owners/developers have given us access to homesites owned or controlled by our partners. Joint ventures with other homebuilders have provided us with the ability to bid jointly with our partners for large land parcels. Joint ventures with financial partners have allowed us to combine our homebuilding expertise with access to our partners’ capital. Joint ventures with strategic partners have allowed us to combine our homebuilding expertise with the specific expertise (e.g. commercial or infill experience) of our partners. Each joint venture is governed by an executive committee consisting of members from the partners. Details regarding these investments, balances and debt are included in Note 3 of the Notes to Condensed Consolidated Financial Statements.

The following table summarizes the principal maturities of our Homebuilding unconsolidated entities ("JVs") debt as per current debt arrangements as of May 31, 2022. It does not represent estimates of future cash payments that will be made to reduce debt balances. Many JV loans have extension options in the loan agreements that would allow the loans to be extended into future years.

									Principal Maturities of Unconsolidated JVs by Period
(In thousands)									Total JV Debt						2022						2023						2024						Thereafter						Other
Debt without recourse to Lennar									$	1,222,548					83,023						108,857						374,337						656,331						—
Land seller and other debt									13,508						—						—						—						—						13,508
Maximum recourse debt exposure to Lennar									3,303						—						—						—						3,303						—
Debt issuance costs									(13,828)						—						—						—						—						(13,828)
Total									$	1,225,531					83,023						108,857						374,337						659,634						(320)

Multifamily: Investments in Unconsolidated Entities

At May 31, 2022, Multifamily had equity investments in 19 unconsolidated entities that are engaged in multifamily residential developments (of which 12 had non-recourse debt and 7 had no debt), compared to 17 unconsolidated entities at November 30, 2021. We invest in unconsolidated entities that acquire and develop land to construct multifamily rental properties. Through these entities, we are focusing on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S. markets. Initially, we participated in building multifamily developments and selling them soon after they were completed. Recently, however, we have been focused on developing properties with the intention of retaining them. Participants in these joint ventures have been financial partners. Joint ventures with financial partners have allowed us to combine our development and construction expertise with access to our partners’ capital. Each joint venture is governed by an operating agreement that provides significant substantive participating voting rights on major decisions to our partners.

The Multifamily segment includes LMV I, LMV II and a new Multifamily Fund, which are long-term multifamily development investment vehicles involved in the development, construction and property management of class-A multifamily assets. Details of each as of and during the six months ended May 31, 2022 are included in Note 3 of the Notes to Condensed Consolidated Financial Statements.

We regularly monitor the results of both our Homebuilding and Multifamily unconsolidated joint ventures and any trends that may affect their future liquidity or results of operations. We also monitor the performance of joint ventures in which we have investments on a regular basis to assess compliance with debt covenants. For those joint ventures not in compliance with the debt covenants, we evaluate and assess possible impairment of our investment. We believe all of the joint ventures were in compliance with applicable debt covenants at May 31, 2022.

The following table summarizes the principal maturities of our Multifamily unconsolidated entities debt as per current debt arrangements as of May 31, 2022. It does not represent estimates of future cash payments that will be made to reduce debt balances.

									Principal Maturities of Unconsolidated JVs by Period
(In thousands)									Total JV Debt						2022						2023						2024						Thereafter						Other
Debt without recourse to Lennar									$	3,962,022					347,265						1,230,742						893,349						1,490,666						—
Debt issuance costs									(23,426)						—						—						—						—						(23,426)
Total									$	3,938,596					347,265						1,230,742						893,349						1,490,666						(23,426)

Lennar Other: Investments in Unconsolidated Entities

As part of the sale of the Rialto investment and asset management platform in 2018, we retained our ability to receive a portion of payments with regard to carried interests if funds meet specified performance thresholds. We periodically receive advance distributions related to the carried interests in order to cover income tax obligations resulting from allocations of taxable income to the carried interests. These distributions are not subject to clawbacks but will reduce future carried interest payments to which we become entitled from the applicable funds and have been recorded as revenues. Our investment in the Rialto funds and investment vehicles totaled $200.1 million and $200.6 million as of May 31, 2022 and November 30, 2021, respectively.

As of May 31, 2022 and November 30, 2021, we had strategic technology investments in unconsolidated entities of $123.7 million and $145.6 million, respectively. Our strategic technology investments through LENX business help to enhance the homebuying and home ownership experience, and help us stay at the forefront of homebuilding innovation.

We own an approximately 40% interest in FivePoint Holdings, LLC., a NYSE listed company, and companies it manages, which own three large multi-use properties in California.

We manage, and have an investment in, Upward America Fund, which purchases single family homes and operates them as rental properties.

Option Contracts

We often obtain access to land through option contracts, which generally enable us to control portions of properties owned by third parties (including land funds) and unconsolidated entities until we have determined whether to exercise the options.

The table below indicates the number of homesites owned and homesites to which we had access through option contracts with third parties ("optioned") or unconsolidated JVs (i.e., controlled homesites):

			Controlled Homesites																														Years of
May 31, 2022			Optioned						JVs						Total						Owned Homesites						Total Homesites						Supply Owned (1)
East			109,986						—						109,986						54,610						164,596
Central			42,281						—						42,281						41,674						83,955
Texas			90,443						—						90,443						44,388						134,831
West			70,434						—						70,434						49,997						120,431
Other			—						5,758						5,758						2,028						7,786
Total homesites			313,144						5,758						318,902						192,697						511,599						3.1
% of total homesites															62		%				38		%

			Controlled Homesites																														Years of
May 31, 2021			Optioned						JVs						Total						Owned Homesites						Total Homesites						Supply Owned (1)
East			55,537						5,750						61,287						55,218						116,505
Central			24,283						92						24,375						41,816						66,191
Texas			43,447						—						43,447						38,332						81,779
West			52,347						3,444						55,791						51,336						107,127
Other			4						7,569						7,573						2,235						9,808
Total homesites			175,618						16,855						192,473						188,937						381,410						3.3
% of total homesites															50		%				50		%

(1)Based on trailing twelve months of home deliveries.

Details on option contracts and related consolidated inventory not owned and exposure are included in Note 10 of the Notes to Condensed Consolidated Financial Statements.

Contractual Obligations and Commercial Commitments

Our contractual obligations and commercial commitments have not changed materially from those reported in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended November 30, 2021. There were no outstanding borrowings under our Credit Facility as of May 31, 2022.

(3) Recently Adopted Accounting Pronouncements

See Note 1 of the Notes to Condensed Consolidated Financial Statements included under Item 1 of this Report for a discussion of recently adopted accounting pronouncements.

(4) Critical Accounting Policies

We believe that there have been no significant changes to our critical accounting policies during the six months ended May 31, 2022 as compared to those we disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K, for the year ended November 30, 2021. While our critical accounting policies have not significantly changed during the six months ended May 31, 2022, the following provides additional disclosures about our revenue recognition accounting policy.

Revenue Recognition

Homebuilding revenues and related profits from sales of homes are recognized at the time of the closing of a sale, when title to and possession of the property are transferred to the homebuyer. We typically offer sales incentives to homebuyers that consist primarily of price discounts on individual homes, financing incentives and optional upgrades (such as upgraded appliances, cabinetry and flooring) without charge. These incentives are accounted for as a reduction in the sales price of the homes. The optional upgrades may be the only sales incentive offered for a particular home, or they may be offered collectively with a discount on the base price of the home. The cost we include for the optional upgrades is included in our cost of home

sales. Because the upgrades are provided without additional charge, no revenue is recognized related to the upgrade(s). See Note 1 of the Notes to Condensed Consolidated Financial Statements.