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 Quarterly Report on Form 10Q and our audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the fiscal year ended November 30, 2022.

Outlook

In these current market conditions, the Lennar team has remained focused on balancing and maintaining production and sales pace, reducing cycle time and increasing cash flow, improving inventory turn and driving strong bottom line earnings, which have produced solid results for the quarter. As a result, we ended the third quarter with stronger-than-expected revenues and deliveries, strong profitability and cash flow, a fortified balance sheet, strong liquidity and low leverage. Our third quarter results reflect consistent adherence to the core operating strategies that we have described in prior quarters against the backdrop of an evolving economic environment and a constructively configured housing landscape.

The economic environment for the homebuilding industry has stabilized relative to the aggressive interest rate climb that defined the environment in 2022. We have entered a phase of more measured adjustments to curtail inflation while the Fed reduces its balance sheet and engages other mechanisms to reduce capital in the market. Although persistent inflation remains, aggressive interest rate hikes which began in 2022 have given way to moderated and measured rate movements, allowing the market to adjust in a more orderly fashion. While the Fed is working to reduce overall capital levels, the elimination of sharp turns and aggressive moves is generally conducive to consumers gaining access to sufficient capital for their necessities, including housing. Against that backdrop, the current housing market is generally defined by a low supply of, and strong demand for, affordable products. Consumers have adjusted to and accepted higher interest rates for longer terms and are willing to purchase or rent what they can afford. Strong demand for housing has returned within the limits of affordability. The market has attracted consumers by adjusting prices, increasing incentives and driving down production costs to facilitate homebuying by customers, and customers have responded, with the understanding that the cost of housing will likely continue to be higher.

Although declining year-over-year through price reductions, together with the use of interest rate buy-downs and other incentives, the average sales price of homes has now stabilized with not much change sequentially. Concurrently, multifamily supply is increasing, and in some geographies, we have seen excess supply, which is moderating rental rates. As such, we do not expect a significant decrease or increase in rents. Overall, we believe that the housing market has leveled, and while net average sales prices are lower, cancellations have been normalizing and margins have stabilized, as cost reductions in value engineering provide an offset to the price reductions. In addition, we believe that the new supply of homes will be limited as developed land is also in short supply and increasingly more expensive to develop. This is expected to continue to limit available inventory and maintain the imbalance between supply and demand. With volume and production as constants, we use margin as our volatility shock absorber. If market conditions deteriorate, we compromise margin through price reductions and increased incentives, but we generate strong cash flow. If conditions improve, we improve margins and bottom line while also generating strong cash flow. Our primary focus is on cash flow.

Against this backdrop, we have remained focused on our core strategies that are driving our company forward.

• Focus on Production and Volume to Drive Efficiency, Cash Flow and Margins - We will continue to remain production and volume-focused, with a primary focus on driving production efficiency, higher inventory turns, higher cash flow and strong margins, while focusing on return on assets. At the same time, we will continue to keep production pace and sales pace closely matched using our digital marketing and Dynamic Pricing Model.

*•*Work Side-by-Side with Our Trade Partners on Costs and Cost Structure - We will continue to work side-by-side with our trade partners to maintain our now properly configured cost structure relative to the current sale price environment while we continue to reduce cycle time to pre-supply chain crisis levels. We have held costs down as the market has stabilized, as reflected in our margin improvement and in the number of homes that were construction-ready and available for delivery in the third quarter.

*•*Sharpen Attention on Land and Land Bank Strategies - We will continue to sharpen our attention on land and land acquisitions, as well as land and land bank strategies. We have made significant progress in reducing land held on our balance sheet, which now stands at 1.5 years owned and 73% controlled homesites. Like our trade partners, our land partners or sellers have become strategic partners in maintaining volume and increasing market share while concurrently helping to reduce costs.

*•*Manage Operating Costs and Reduce S,G&A Expense - We will continue to manage our operating costs and reduce our S,G&A expense so that even at lower gross margins, we will drive a strong net margin. We have been improving our S,G&A leverage over the past years quarter-by-quarter to new record lows and many of those changes, though not all, are hard-wired. We have seen upward pressure on some of our sales, marketing and realtor costs in order to find purchasers and drive new sales. However, we believe if we continue to drive volume, we’ll be able to constrain increases and manage to attractive cost levels and net margins.

*•*Maintain Tight Inventory Control - We will continue to maintain tight inventory control. We have recently significantly improved inventory control by focusing on selling homes in inventory and increasing our attention to, among other things, underperforming communities and products and plans that are not selling as expected. We are

focused on clearing homes that are complete and closable, rather than selling homes that we intend to close many quarters in the future. We have significantly reduced cycle time and expect to continue to bring down our cycle time down to pre-pandemic levels. This will free up a significant amount of cash that currently is tied up in the increased inventory dollars related to homes under construction.

*•*Focus on Cash Flow and Bottom Line to Enhance our Balance Sheet - We will continue to focus on our cash flow and bottom line to protect and enhance our already strong balance sheet. We expect to continue to generate considerable earnings and cash flow which will give us the flexibility to retire debt and repurchase our stock opportunistically, which will improve total shareholder returns and return on equity.

In summary, the housing market has continued to be defined by housing shortage and generally strong demand that is prepared to transact. Accordingly, we executed on our core strategies against the economic and industry backdrop. Given consistent execution, we are extremely well positioned for continued success as strong demand for affordable offerings continues to exceed the current short supply. Knowing what to do and executing our plan has driven this quarter's success and ensures consistent success for the foreseeable future. As we look ahead to a successful fourth quarter and into 2024, we are positioned for and expect to see much of the same as we go forward.

We will continue to provide limited guidance to give some boundaries for various components of our expected results for the fourth quarter and full year 2023. We expect our new orders for the fourth quarter of 2023 to be in the range of 16,200 and 17,200 homes. We expect our deliveries for the fourth quarter to be between 21,500 and 22,500 homes with a gross margin between 24.4% and 24.6%. We expect our S,G&A expenses as a percentage of home sale revenues to be between 6.7% and 6.9% as we continue to focus on maintaining sales and production paces. We expect our fourth quarter ending community count to increase mid-single digits year-over-year. Our fourth quarter average sales price should be consistent with the third quarter. Additionally, we are targeting delivery volume for the full year 2023 to be between 70,800 and 71,800 homes which is an increase of 7% to 8% year-over-year.

(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 nine months ended August 31, 2023 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 $1.1 billion, or $3.87 per diluted share, in the third quarter of 2023, compared to net earnings attributable to Lennar of $1.5 billion, or $5.03 per diluted share, in the third quarter of 2022. Results for the third quarter of 2023 included unrealized mark-to-market losses of $15.7 million on our publicly traded technology investments. Results for the third quarter of 2022 included unrealized mark-to-market losses of $85.8 million, a $35.5 million one-time charge due to an increase in a litigation accrual related to a court judgment and a $53.6 million benefit in income taxes primarily related to the resolution of an uncertain state tax position. Excluding mark-to-market losses on technology investments in both years and one-time items in the prior year, third quarter net earnings attributable to Lennar in 2023 were $1.1 billion or $3.91 per diluted share, compared to third quarter net earnings attributable to Lennar in 2022 of $1.5 billion or $5.18 per diluted share.

Financial information relating to our operations was as follows:

			Three Months Ended August 31, 2023
(In thousands)			Homebuilding						Financial Services						Multifamily						Lennar Other						Corporate						Total
Revenues:
Sales of homes			$	8,285,873					—						—						—						—						8,285,873
Sales of land			20,430						—						—						—						—						20,430
Other revenues			12,312						266,206						137,394						7,388						—						423,300
Total revenues			8,318,615						266,206						137,394						7,388						—						8,729,603
Costs and expenses:
Costs of homes sold			6,261,578						—						—						—						—						6,261,578
Costs of land sold			18,720						—						—						—						—						18,720
Selling, general and administrative expenses			582,765						—						—						—						—						582,765
Other costs and expenses			—						117,211						139,759						6,155						—						263,125
Total costs and expenses			6,863,063						117,211						139,759						6,155						—						7,126,188
Equity in loss from unconsolidated entities			(4,016)						—						(6,922)						(13,051)						—						(23,989)
Other income (expense), net and other gains (losses)			42,284						—						554						1,313						—						44,151
Lennar Other unrealized losses from technology investments			—						—						—						(15,713)						—						(15,713)
Operating earnings (loss)			$	1,493,820					148,995						(8,733)						(26,218)						—						1,607,864
Corporate general and administrative expenses			—						—						—						—						114,144						114,144
Charitable foundation contribution			—						—						—						—						18,559						18,559
Earnings (loss) before income taxes			$	1,493,820					148,995						(8,733)						(26,218)						(132,703)						1,475,161

			Three Months Ended August 31, 2022
(In thousands)			Homebuilding						Financial Services						Multifamily						Lennar Other						Corporate						Total
Revenues:
Sales of homes			$	8,439,125					—						—						—						—						8,439,125
Sales of land			32,397						—						—						—						—						32,397
Other revenues (1)			7,974						202,078						243,056						9,801						—						462,909
Total revenues			8,479,496						202,078						243,056						9,801						—						8,934,431
Costs and expenses:
Costs of homes sold			5,973,889						—						—						—						—						5,973,889
Costs of land sold			34,994						—						—						—						—						34,994
Selling, general and administrative expenses			485,854						—						—						—						—						485,854
Other costs and expenses			—						138,730						215,433						10,007						—						364,170
Total costs and expenses			6,494,737						138,730						215,433						10,007						—						6,858,907
Equity in earnings (loss) from unconsolidated entities			(14,652)						—						20,863						(19,521)						—						(13,310)
Other income (expense), net and other gains (losses)			(6,883)						—						1						(12,414)						—						(19,296)
Lennar Other unrealized losses from technology investments			—						—						—						(85,839)						—						(85,839)
Operating earnings (loss)			$	1,963,224					63,348						48,487						(117,980)						—						1,957,079
Corporate general and administrative expenses			—						—						—						—						115,557						115,557
Charitable foundation contribution			—						—						—						—						17,248						17,248
Earnings (loss) before income taxes			$	1,963,224					63,348						48,487						(117,980)						(132,805)						1,824,274

			Nine Months Ended August 31, 2023
(In thousands)			Homebuilding						Financial Services						Multifamily						Lennar Other						Corporate						Total
Revenues:
Sales of homes			$	22,016,279					—						—						—						—						22,016,279
Sales of land			46,462						—						—						—						—						46,462
Other revenues			82,196						672,166						432,661						15,419						—						1,202,442
Total revenues			22,144,937						672,166						432,661						15,419						—						23,265,183
Costs and expenses:
Costs of homes sold			16,980,746						—						—						—						—						16,980,746
Costs of land sold			52,729						—						—						—						—						52,729
Selling, general and administrative expenses			1,543,259						—						—						—						—						1,543,259
Other costs and expenses			—						331,835						443,069						19,426						—						794,330
Total costs and expenses			18,576,734						331,835						443,069						19,426						—						19,371,064
Equity in loss from unconsolidated entities			(13,109)						—						(29,331)						(62,491)												(104,931)
Other income (expense), net and other gains (losses)			59,974						—						1,243						(3,706)												57,511
Lennar Other unrealized losses from technology investments			—						—						—						(14,170)												(14,170)
Operating earnings (loss)			$	3,615,068					340,331						(38,496)						(84,374)						—						3,832,529
Corporate general and administrative expenses			—						—						—						—						365,002						365,002
Charitable foundation contribution			—						—						—						—						49,292						49,292
Earnings (loss) before income taxes			$	3,615,068					340,331						(38,496)						(84,374)						(414,294)						3,418,235

			Nine Months Ended August 31, 2022
(In thousands)			Homebuilding						Financial Services						Multifamily						Lennar Other						Corporate						Total
Revenues:
Sales of homes			$	22,124,565					—						—						—						—						22,124,565
Sales of land			63,888						—						—						—						—						63,888
Other revenues (1)			21,230						578,945						686,436						21,579						—						1,308,190
Total revenues			22,209,683						578,945						686,436						21,579						—						23,496,643
Homebuilding costs and expenses:
Costs of homes sold			15,769,536						—						—						—						—						15,769,536
Costs of land sold			71,365						—						—						—						—						71,365
Selling, general and administrative			1,400,887						—						—						—						—						1,400,887
Other costs and expenses			—						320,871						654,322						23,650						—						998,843
Total costs and expenses			17,241,788						320,871						654,322						23,650						—						18,240,631
Equity in earnings (loss) from unconsolidated entities			(10,076)						—						22,429						(47,224)						—						(34,871)
Other income (expense), net and other gains (losses)			(4,334)						—						39						(21,269)						—						(25,564)
Lennar Other unrealized losses from technology investments			—						—						—						(558,974)						—						(558,974)
Operating earnings			$	4,953,485					258,074						54,582						(629,538)						—						4,636,603
Corporate general and administrative expenses			—						—						—						—						334,425						334,425
Charitable foundation contribution			—						—						—						—						46,335						46,335
Earnings (loss) before income taxes			$	4,953,485					258,074						54,582						(629,538)						(380,760)						4,255,843

(1) During the three and nine months ended August 31, 2022, other revenues in our Multifamily segment included land sales to unconsolidated entities of $62.2 million and $210.0 million, respectively.

Three Months Ended August 31, 2023 versus Three Months Ended August 31, 2022

Revenues from home sales decreased 2% in the third quarter of 2023 to $8.3 billion from $8.4 billion in the third quarter of 2022. Revenues were lower primarily due to a 9% decrease in average sales price of home deliveries, partially offset by an 8% increase in the number of home deliveries. New home deliveries increased to 18,559 homes in the third quarter of 2023 from 17,248 homes in the third quarter of 2022. The average sales price of homes delivered was $448,000 in the third quarter of 2023, compared to $491,000 in the third quarter of 2022. The decrease in average sales price of homes delivered in the third quarter of 2023 compared to the same period last year was primarily due to pricing to market and product mix.

Gross margins on home sales were $2.0 billion, or 24.4%, in the third quarter of 2023, compared to $2.5 billion, or 29.2%, in the third quarter of 2022. During the third quarter of 2023, gross margins decreased because revenues per square foot decreased year over year as we priced homes to market, which was partially offset by a decrease in costs per square foot due to lower material costs. In addition, land costs increased year over year.

Selling, general and administrative expenses were $582.8 million in the third quarter of 2023, compared to $485.9 million in the third quarter of 2022. As a percentage of revenues from home sales, selling, general and administrative expenses increased to 7.0% in the third quarter of 2023, from 5.8% in the third quarter of 2022, primarily due to an increase in the use of brokers due to current market conditions.

Operating earnings for the Financial Services segment were $149.0 million ($148.3 million net of noncontrolling interests) in the third quarter of 2023, compared to $63.0 million in the third quarter of 2022. In 2022, the operating earnings included a $35.5 million one-time charge due to an increase in a litigation accrual related to a court judgment. Excluding this one-time charge, operating earnings were $98.5 million in the third quarter of 2022. The increase in operating earnings in 2023 was primarily due to a higher profit per locked loan in our mortgage business as a result of higher margins, and higher lock volume because of an increased capture rate. There was also an increase in profitability in our title business primarily due to benefits of our technology efforts.

Operating loss for the Multifamily segment was $8.7 million in the third quarter of 2023, compared to operating earnings of $48.5 million ($45.9 million net of noncontrolling interests) in the third quarter of 2022. Operating loss for the Lennar Other segment was $26.2 million in the third quarter of 2023, compared to operating loss of $118.0 million in the third quarter of 2022. Lennar Other operating loss in the third quarter of 2023 was due to operating losses from certain strategic investments and mark-to-market losses on our publicly traded technology investments. Lennar Other operating loss in the third quarter of 2022 was primarily due to mark-to-market losses on our technology investments.

Nine Months Ended August 31, 2023 versus Nine Months Ended August 31, 2022

Revenues from home sales were $22.0 billion and $22.1 billion in the nine months ended August 31, 2023 and 2022, respectively. Revenues were flat primarily because of a 6% increase in the number of home deliveries, which was offset by a 6% decrease in average sales price of home deliveries. New home deliveries increased to 49,292 homes in the nine months ended August 31, 2023 from 46,335 homes in the nine months ended August 31, 2022. The average sales price of homes delivered was $448,000 in the nine months ended August 31, 2023, compared to $479,000 in the nine months ended August 31, 2022. The decrease in average sales price of homes delivered in the nine months ended August 31, 2023 compared to the same period last year was primarily due to pricing to market and product mix.

Gross margins on home sales were $5.0 billion, or 22.9%, in the nine months ended August 31, 2023, compared to $6.4 billion, or 28.7%, in the nine months ended August 31, 2022. During the nine months ended August 31, 2023, gross margins decreased because revenues per square foot decreased year over year as we priced homes to market and costs per square foot increased primarily due to higher material and labor costs. In addition, land costs increased year over year.

Selling, general and administrative expenses were $1.5 billion in the nine months ended August 31, 2023, compared to $1.4 billion in the nine months ended August 31, 2022. As a percentage of revenues from home sales, selling, general and administrative expenses increased to 7.0% in the nine months ended August 31, 2023, from 6.3% in the nine months ended August 31, 2022, primarily due to an increase in the use of brokers due to current market conditions.

During the nine months ended August 31, 2023, our homebuilding operating earnings included $102.7 million of interest income due to an increase in cash balances and higher interest rates, which was partially offset by an impairment of $36.8 million of an investment in a joint venture.

Operating earnings for the Financial Services segment were $340.3 million ($338.7 million net of noncontrolling interests) in the nine months ended August 31, 2023, compared to $257.1 million in the nine months ended August 31, 2022. In 2022, operating earnings included a $35.5 million one-time charge due to an increase in a litigation accrual related to a court judgment. Excluding this one-time charge, operating earnings were $292.6 million in the third quarter of 2022. The increase in operating earnings in 2023 was primarily due to a higher profit per locked loan in our mortgage business as a result of higher margins, and higher lock volume because of an increased capture rate. There was also an increase in profitability in our title business primarily due to benefits of our technology efforts.

Operating loss for the Multifamily segment was $38.5 million ($38.4 million net of noncontrolling interests) in the nine months ended August 31, 2023, compared to operating earnings of $54.6 million ($52.0 million net of noncontrolling interests) in the nine months ended August 31, 2022. Operating loss for the Lennar Other segment was $85.8 million in the nine months ended August 31, 2023, compared to operating loss of $629.5 million in the nine months ended August 31, 2022. Lennar Other operating loss in the nine months ended August 31, 2023 was primarily related to operating losses from certain strategic

investments. Lennar Other operating loss in the nine months ended August 31, 2022 was primarily due to mark-to-market losses on our publicly traded technology investments.

For the nine months ended August 31, 2023 and 2022, we had tax provisions of $824.2 million and $951.3 million, respectively, which resulted in overall effective income tax rates of 24.2% and 22.4%, respectively. In the nine months ended August 31, 2023, our overall effective income tax rate was higher than last year, primarily due to the resolution of an uncertain state tax position and the retroactive reinstatement of the new energy efficient home credit, both during the third quarter of 2022.

Homebuilding Segments

At August 31, 2023, 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 August 31, 2023
			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			$	2,397,446					1,677,337						30.0		%				528,089						21						3,353						5,699						16,538						553,700
Central			1,598,527						1,224,134						23.4		%				252,147						6						1,582						1,029						6,778						261,542
Texas			1,174,858						878,430						25.2		%				214,919						749						897						—						3,306						219,871
West			3,108,783						2,467,213						20.6		%				464,351						934						2,421						(90)						12,352						479,968
Other (2)			6,259						14,464						(131.1)		%				(17,976)						—						4,059						(10,654)						3,310						(21,261)
Totals			$	8,285,873					6,261,578						24.4		%				1,441,530						1,710						12,312						(4,016)						42,284						1,493,820

			Three Months Ended August 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			$	2,521,247					1,722,167						31.7		%				642,974						(1,618)						879						505						(259)						642,482
Central			1,566,610						1,191,833						23.9		%				271,939						625						429						215						(856)						272,351
Texas			1,138,901						789,121						30.7		%				279,148						105						342						—						(781)						278,814
West			3,208,713						2,262,658						29.5		%				790,072						(1,709)						1,036						2,137						(3,093)						788,443
Other (2)			3,654						8,110						(121.9)		%				(4,751)						—						5,288						(17,509)						(1,894)						(18,866)
Totals			$	8,439,125					5,973,889						29.2		%				1,979,382						(2,597)						7,974						(14,652)						(6,883)						1,963,224

			Nine Months Ended August 31, 2023
			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			$	6,573,925					4,647,466						29.3		%				1,410,551						(1,809)						27,646						12,057						35,374						1,483,819
Central			4,022,372						3,147,086						21.8		%				558,979						6,671						23,263						802						17,425						607,140
Texas			3,329,348						2,586,507						22.3		%				512,886						16						6,060						—						9,269						528,231
West			8,075,810						6,573,159						18.6		%				1,036,142						(11,145)						12,906						1,572						26,465						1,065,940
Other (2)			14,824						26,528						(79.0)		%				(26,284)						—						12,321						(27,540)						(28,559)						(70,062)
Totals			$	22,016,279					16,980,746						22.9		%				3,492,274						(6,267)						82,196						(13,109)						59,974						3,615,068

			Nine Months Ended August 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			$	6,394,206					4,409,479						31.0		%				1,541,118						(7,911)						2,871						(1,512)						13,730						1,548,296
Central			3,956,302						3,044,277						23.1		%				629,206						2,244						889						646						(1,761)						631,224
Texas			3,038,064						2,110,824						30.5		%				722,023						2,976						839						—						(2,855)						722,983
West			8,718,178						6,180,948						29.1		%				2,080,936						(2,693)						2,595						4,844						(7,942)						2,077,740
Other (2)			17,815						24,008						(34.8)		%				(19,141)						(2,093)						14,036						(14,054)						(5,506)						(26,758)
Totals			$	22,124,565					15,769,536						28.7		%				4,954,142						(7,477)						21,230						(10,076)						(4,334)						4,953,485

(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/or 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
			August 31,												August 31,												August 31,
			2023						2022						2023						2022						2023						2022
East			5,605						5,647						$	2,430,072					2,538,479						$	434,000					450,000
Central			3,807						3,501						1,598,527						1,566,610						420,000						447,000
Texas			4,102						3,447						1,174,859						1,138,901						286,000						330,000
West			5,036						4,649						3,108,783						3,208,713						617,000						690,000
Other			9						4						6,258						3,655						695,000						914,000
Total			18,559						17,248						$	8,318,499					8,456,358						$	448,000					491,000

Of the total homes delivered listed above, 66 homes with a dollar value of $32.6 million and an average sales price of $494,000 represent home deliveries from unconsolidated entities for the three months ended August 31, 2023, compared to 46 home deliveries with a dollar value of $17.2 million and an average sales price of $375,000 for the three months ended August 31, 2022.

			Nine Months Ended
			Homes												Dollar Value (In thousands)												Average Sales Price
			August 31,												August 31,												August 31,
			2023						2022						2023						2022						2023						2022
East			15,272						14,927						$	6,669,141					6,436,576						$	437,000					431,000
Central			9,327						8,966						4,022,372						3,956,302						431,000						441,000
Texas			11,431						9,272						3,329,349						3,038,064						291,000						328,000
West			13,243						13,151						8,075,810						8,718,178						610,000						663,000
Other			19						19						14,824						17,816						780,000						938,000
Total			49,292						46,335						$	22,111,496					22,166,936						$	448,000					479,000

Of the total homes delivered listed above, 201 homes with a dollar value of $95.2 million and an average sales price of $474,000 represent home deliveries from unconsolidated entities for the nine months ended August 31, 2023, compared to 115 home deliveries with a dollar value of $42.4 million and an average sales price of $368,000 for the nine months ended August 31, 2022.

Sales Incentives (1):

															Three Months Ended
									Average Sales Incentives Per Home Delivered												Sales Incentives as a % of Revenue
									August 31,												August 31,
															2023						2022						2023						2022
East															$	30,600					8,300						6.6		%				1.8		%
Central															27,200						7,500						6.1		%				1.6		%
Texas															49,300						19,200						14.7		%				5.5		%
West															39,200						15,600						6.0		%				2.2		%
Other															89,800						86,900						11.4		%				8.7		%
Total															$	36,400					12,300						7.5		%				2.5		%

															Nine Months Ended
									Average Sales Incentives Per Home Delivered												Sales Incentives as a % of Revenue
									August 31,												August 31,
															2023						2022						2023						2022
East															$	31,200					7,000						6.7		%				1.6		%
Central															30,500						6,600						6.6		%				1.5		%
Texas															57,500						15,200						16.5		%				4.4		%
West															48,800						10,200						7.4		%				1.5		%
Other															95,300						93,500						10.9		%				9.1		%
Total															$	42,000					9,500						8.6		%				1.9		%

(1) Sales incentives relate to home deliveries during the period, excluding deliveries by unconsolidated entities.

New Orders (2):

			Three Months Ended
			Active Communities												Homes												Dollar Value (In thousands)												Average Sales Price
			August 31,												August 31,												August 31,												August 31,
			2023						2022						2023						2022						2023						2022						2023						2022
East			362						328						5,779						5,675						$	2,398,206					2,514,776						$	415,000					443,000
Central			277						296						4,003						3,033						1,669,911						1,348,226						417,000						445,000
Texas			235						217						4,730						2,577						1,302,268						776,156						275,000						301,000
West			375						345						5,140						3,077						3,261,380						2,015,897						635,000						655,000
Other			4						3						14						4						7,877						2,668						563,000						667,000
Total			1,253						1,189						19,666						14,366						$	8,639,642					6,657,723						$	439,000					463,000

Of the total homes listed above, 82 homes with a dollar value of $42.0 million and an average sales price of $512,000 represent homes in six active communities from unconsolidated entities for the three months ended August 31, 2023, compared to 79 homes with a dollar value of $39.4 million and an average sales price of $499,000 in seven active communities for the three months ended August 31, 2022.

			Nine Months Ended
			Homes												Dollar Value (In thousands)												Average Sales Price
			August 31,												August 31,												August 31,
			2023						2022						2023						2022						2023						2022
East			15,540						16,558						$	6,606,656					7,401,602						$	425,000					447,000
Central			9,926						9,721						4,179,439						4,413,718						421,000						454,000
Texas			11,604						8,718						3,261,481						2,887,204						281,000						331,000
West			14,650						12,889						9,159,865						8,834,508						625,000						685,000
Other			25						19						17,106						16,499						684,000						868,000
Total			51,745						47,905						$	23,224,547					23,553,531						$	449,000					492,000

Of the total homes delivered listed above, 252 homes with a dollar value of $117.3 million and an average sales price of $465,000 represent home deliveries from unconsolidated entities for the nine months ended August 31, 2023, compared to 183 home deliveries with a dollar value of $87.5 million and an average sales price of $478,000 for the nine months ended August 31, 2022.

(2)Homes represent the number of new sales contracts executed with homebuyers, net of cancellations, during the three and nine months ended August 31, 2023 and 2022.

We experienced cancellation rates in our Homebuilding segments and Homebuilding other as follows:

			Three Months Ended												Nine Months Ended
			August 31,												August 31,
			2023						2022						2023						2022
East			13		%				12		%				16		%				9		%
Central			10		%				15		%				16		%				9		%
Texas			17		%				33		%				20		%				24		%
West			13		%				31		%				13		%				18		%
Other			—		%				—		%				7		%				50		%
Total			13		%				21		%				16		%				14		%

Backlog:

			Homes												Dollar Value (In thousands)												Average Sales Price
			As of August 31,												As of August 31,												As of August 31,
			2023						2022						2023						2022						2023						2022
East			8,973						9,903						$	3,757,839					4,538,997						$	419,000					458,000
Central			4,624						5,912						2,012,497						2,791,899						435,000						472,000
Texas			2,870						3,712						769,216						1,302,409						268,000						351,000
West			4,847						6,203						3,310,533						4,251,491						683,000						685,000
Other			7						4						3,446						2,626						492,000						656,000
Total			21,321						25,734						$	9,853,531					12,887,422						$	462,000					501,000

Of the total homes in backlog listed above, 217 homes with a backlog dollar value of $99.8 million and an average sales price of $460,000 represent the backlog from unconsolidated entities at August 31, 2023, compared to 147 homes with a backlog dollar value of $73.8 million and an average sales price of $502,000 at August 31, 2022.

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 August 31, 2023 versus Three Months Ended August 31, 2022

Homebuilding East: Revenues from home sales decreased in the third quarter of 2023 compared to the third quarter of 2022, primarily due to a decrease in the number of home deliveries in Florida and New Jersey and a decrease in the average sales price of homes delivered in all the states in the segment except in New Jersey. The decrease in the number of home deliveries in Florida and New Jersey was due to a decrease in deliveries per active community due to the timing of opening and closing of communities. The increase in the number of home deliveries in Alabama, Pennsylvania and South Carolina was primarily due to an increase in the number of deliveries per active community. The decrease in the average sales price of homes delivered in Alabama, Florida, Pennsylvania and South Carolina was primarily due to pricing to market and product mix. The increase in the average sales price of homes delivered in New Jersey was primarily due to product mix. In the third quarter of 2023, an increase in revenues per square foot was more than offset by an increase in costs per square foot primarily due to higher material and labor costs, thus gross margin percentage of home deliveries decreased. In addition, land costs increased year over year.

Homebuilding Central: Revenues from home sales increased in the third quarter of 2023 compared to the third quarter of 2022, primarily due to an increase in the number of home deliveries in all the states in the segment except in Georgia, Tennessee and Virginia, which was partially offset by a decrease in the average sales price of homes delivered in all the states in the segment except in Illinois and Tennessee. The increase in the number of home deliveries in Illinois, Indiana, Maryland, Minnesota and North Carolina was primarily due to an increase in the number of deliveries per active community. The decrease in the number of home deliveries in other states in the segment was primarily due to a decrease in the number of deliveries per active community due to the timing of opening and closing of communities. The decrease in the average sales price of homes delivered in Georgia, Indiana, Maryland, Minnesota, North Carolina and Virginia was primarily due to pricing to market and product mix. The increase in the average sales price of homes delivered in other states in the segment was primarily due to product mix. In the third quarter of 2023, a decrease in revenues per square foot was partially offset by a decrease in costs per square foot, which resulted in a decrease in gross margin percentage of home deliveries. In addition, land costs remained relatively flat year over year.

Homebuilding Texas: Revenues from home sales increased in the third quarter of 2023 compared to the third quarter of 2022, primarily due to an increase in the number of home deliveries, which was partially offset by a decrease in the average sales price of homes delivered. The increase in the number of home deliveries was primarily due to an increase in the number of active communities. The decrease in the average sales price of homes delivered was primarily due to pricing to market. In the third quarter of 2023, a decrease in revenues per square foot was partially offset by a decrease in costs per square foot, which resulted in a decrease in gross margin percentage of home deliveries. In addition, land costs increased year over year.

Homebuilding West: Revenues from home sales decreased in the third quarter of 2023 compared to the third quarter of 2022, primarily due to a decrease in the average sales price of homes delivered in all the states in the segment which was partially offset by an increase in the number of home deliveries in all the states in the segment except in Utah and Washington. The decrease in the average sales price of homes delivered in all the states in the segment was primarily due to pricing to market and product mix. The increase in the number of home deliveries in Arizona, California, Colorado, Idaho, Nevada and Oregon was primarily due to an increase in the number of active communities and deliveries per active community. The decrease in the number of home deliveries in other states in the segment was primarily due to a decrease in the number of deliveries per active community due to the timing of opening and closing of communities. In the third quarter of 2023, a decrease in revenues per square foot was partially offset by a decrease in costs per square foot, which resulted in a decrease in gross margin percentage of home deliveries. In addition, land costs increased year over year.

Nine Months Ended August 31, 2023 versus Nine Months Ended August 31, 2022

Homebuilding East: Revenues from home sales increased in the nine months ended August 31, 2023 compared to the nine months ended August 31, 2022, 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 in the segment except in Alabama. The increase in the number of home deliveries in Alabama, Florida, Pennsylvania and South Carolina was primarily due to 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 deliveries per active community due to the timing of opening and closing of communities. The increase in the average sales price of homes delivered in Florida, New Jersey, Pennsylvania and South Carolina was primarily due to product mix. The decrease in the average sales price of homes delivered in Alabama was primarily due to pricing to market and product mix. In the nine months ended August 31, 2023, an increase in revenues per

square foot was more than offset by an increase in costs per square foot primarily due to higher materials and labor costs, thus gross margin percentage of home deliveries decreased. In addition, land costs increased year over year.

Homebuilding Central: Revenues from home sales increased in the nine months ended August 31, 2023 compared to the nine months ended August 31, 2022, primarily due to an increase in the number of home deliveries in all the states in the segment except in Georgia, Tennessee and Virginia, which was partially offset by a decrease in the average sales price of homes delivered in all the states in the segment except in Illinois, Indiana, Maryland and Tennessee. The increase in the number of home deliveries in Illinois, Indiana, Maryland, Minnesota and North Carolina was primarily due to an increase in the number of deliveries per active community. The decrease in the number of home deliveries in other states in the segment was primarily due to a decrease in the number of deliveries per active community due to the timing of opening and closing of communities. The decrease in the average sales price of homes delivered in Georgia, Minnesota, North Carolina and Virginia was primarily due to pricing to market and product mix. The increase in the average sales price of homes delivered in other states in the segment was primarily due to product mix. In the nine months ended August 31, 2023, a decrease in revenues per square foot and an increase in costs per square foot due to higher materials and labor costs, resulted in a decrease in gross margin percentage of home deliveries. In addition, land costs remained relatively flat year over year.

Homebuilding Texas: Revenues from home sales increased in the nine months ended August 31, 2023, compared to the nine months ended August 31, 2022, primarily due to an increase in the number of home deliveries, which was partially offset by a decrease in the average sales price of homes delivered. The increase in the number of home deliveries was primarily due to an increase in the number of active communities and deliveries per active community. The decrease in the average sales price of homes delivered was primarily due to pricing to market. In the nine months ended August 31, 2023, a decrease in revenues per square foot and an increase in costs per square foot primarily due to higher materials and labor costs, resulted in a decrease in gross margin percentage of home deliveries. In addition, land costs increased year over year.

Homebuilding West: Revenues from home sales decreased in the nine months ended August 31, 2023 compared to the nine months ended August 31, 2022, primarily due to a decrease in the average sales price of homes delivered in all the states in the segment, which was partially offset by an increase in the number of home deliveries in all the states in the segment except in California, Colorado, Utah and Washington. The decrease in the average sales price of homes delivered in all the states in the segment was primarily due to pricing to market and product mix. The increase in the number of home deliveries in Arizona, Idaho, Nevada and Oregon was primarily due to an increase in the number of deliveries per active community. The decrease in the number of home deliveries in other states of the segment was primarily due to a decrease in the number of deliveries per active community due to the timing of opening and closing of communities. In the nine months ended August 31, 2023, a decrease in revenues per square foot and an increase in costs per square foot primarily due to higher materials and labor costs, resulted in a decrease in gross margin percentage of home deliveries. In addition, land costs increased year over year.

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												Nine Months Ended
			August 31,												August 31,
(Dollars in thousands)			2023						2022						2023						2022
Dollar value of mortgages originated			$	4,435,000					3,549,000						11,531,000						9,816,000
Number of mortgages originated			11,900						9,200						31,200						25,700
Mortgage capture rate of Lennar homebuyers			81%						67%						79%						70%
Number of title and closing service transactions			18,900						17,500						50,800						48,500

At August 31, 2023 and November 30, 2022, the carrying value of Financial Services' commercial mortgage-backed securities was $141.0 million and $143.3 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 table provides information related to our investment in the Multifamily segment:

Balance Sheets
(In thousands)			August 31, 2023						November 30, 2022
Multifamily investments in unconsolidated entities			$	623,269					648,126
Lennar's net investment in Multifamily			1,056,365						935,961

Statement of Operations			Three Months Ended												Nine Months Ended
			August 31,												August 31,
(Dollars in thousands)			2023						2022						2023						2022
Number of operating properties/investments sold through joint ventures			—						1						—						1
Lennar's share of gains on the sale of operating properties/investments			$	—					19,730						—						19,730

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 August 31, 2023 and November 30, 2022, we had $773.6 million and $788.5 million, respectively, of assets in our Lennar Other segment, which included investments in unconsolidated entities of $288.5 million and $316.5 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 carried at market and will therefore change depending on the market value of our shareholdings in those entities on the last day of each quarter. The following is a detail of Lennar Other unrealized gains (losses) from mark-to-market adjustments on our technology investments:

			Three Months Ended												Nine Months Ended
			August 31,												August 31,
(In thousands)			2023						2022						2023						2022
Blend Labs (BLND)			$	386					(518)						(360)						(21,510)
Hippo (HIPO)			(17,166)						(32,933)						(14,933)						(195,336)
Opendoor (OPEN)			23,638						(54,391)						38,459						(218,751)
SmartRent (SMRT)			(1,707)						(23,118)						8,219						(71,431)
Sonder (SOND)			(91)						(168)						(549)						(2,300)
Sunnova (NOVA)			(20,773)						25,289						(45,006)						(49,646)
Lennar Other unrealized losses from technology investments			$	(15,713)					(85,839)						(14,170)						(558,974)

(2) Financial Condition and Capital Resources

At August 31, 2023, we had cash and cash equivalents and restricted cash related to our homebuilding, financial services, multifamily and other operations of $4.1 billion, compared to $4.8 billion at November 30, 2022 and $1.6 billion at August 31, 2022.

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 August 31, 2023, we had $3.9 billion of homebuilding cash and cash equivalents and no outstanding borrowings under our $2.6 billion revolving credit facility, thereby providing approximately $6.5 billion of available capacity.

Operating Cash Flow Activities

During the nine months ended August 31, 2023 and 2022, cash provided by operating activities totaled $2.6 billion and $551 million, respectively. During the nine months ended August 31, 2023, cash provided by operating activities was impacted primarily by our net earnings, a decrease in loans held-for-sale of $434 million primarily related to the sale of loans originated by our Financial Services segment and a decrease in receivables of $168 million primarily related to a decrease in Financial Services receivables, net, which are loans sold to investors for which we have not yet been paid. This was partially offset by a decrease in accounts payable and other liabilities of $882 million, primarily due to the payment of income taxes and an increase in other assets of $101 million.

During the nine months ended August 31, 2022, cash provided by operating activities was impacted primarily by our net earnings, excluding Lennar Other mark-to-market losses on our publicly trade technology investments and other losses of $579 million, a decrease in loans held-for-sale of $319 million primarily related to the sale of loans originated by our Financial Services segment, and an increase in accounts payable and other liabilities of $181 million. This was partially offset by an increase in inventories due to strategic land purchases, land development and construction costs of $3.9 billion and an increase in receivables of $164.4 million primarily related to an increase in Financial Services receivables, net, which are loans sold to investors for which we have not yet been paid.

Investing Cash Flow Activities

During the nine months ended August 31, 2023 and 2022, cash used in investing activities totaled $115 million and $131 million, respectively. During the nine months ended August 31, 2023, our cash used in investing activities was primarily due to cash contributions of $153 million to unconsolidated entities, which included (1) $75 million to Homebuilding unconsolidated entities, (2) $58 million to Lennar other unconsolidated entities and (3) $20 million to Multifamily unconsolidated entities. This was partially offset by distributions of capital from unconsolidated entities of $70 million, which primarily included (1) $48 million from Homebuilding unconsolidated entities, (2) $21 million from our Lennar Other unconsolidated entities, and (3) $1 million from Multifamily entities.

During the nine months ended August 31, 2022, our cash used in investing activities was primarily due to cash contributions of $396.7 million to unconsolidated entities, which included (1) $276 million to Homebuilding unconsolidated entities, (2) $100.7 million to Lennar Other unconsolidated entities, and (3) $20 million to Multifamily unconsolidated entities. In addition, we had $94 million of purchases of investment securities related to technology investments included in the Lennar Other segment. This was partially offset by distributions of capital from unconsolidated entities of $332 million, which primarily included (1) $230 million from Multifamily unconsolidated entities, (2) $47 million from Homebuilding unconsolidated entities, and (3) $56 million from our Lennar Other unconsolidated entities.

Financing Cash Flow Activities

During the nine months ended August 31, 2023 and 2022, cash used in financing activities totaled $3.2 billion and $1.8 billion, respectively. During the nine months ended August 31, 2023, cash used in financing activities was primarily due to (1) $981 million of net repayments under our Financial Services' warehouse facilities; (2) $842 million in repurchases of our common stock, which included $769 million of repurchases under our repurchase program and $72 million of repurchases related to our equity compensation plan; (3) the early redemption of $425 million aggregate principal amount of our 5.875% senior notes due November 2024; (4) $208 million of repurchases of our senior notes due in fiscal year 2024 (5) $325 million of dividend payments; and (6) $256 million of net payments from liabilities related to consolidated inventory not owned due to activity with land banks.

During the nine months ended August 31, 2022, cash used in financing activities was primarily due to (1) the early redemption of $575 million aggregate principal amount of 4.75% senior notes due November 2022; (2) $238 million of net repayments under our Financial Services' warehouse facilities; (3) $919 million of repurchases of our common stock, which included $847 million of repurchases under our repurchase program and $72 million of repurchases related to our equity compensation plan; and (4) $330 million of dividend payments. These were partially offset by $328 million of net proceeds from liabilities related to consolidated inventory not owned due to activity with 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)			August 31, 2023						November 30, 2022						August 31, 2022
Homebuilding debt			$	3,320,119					4,047,294						4,057,496
Stockholders’ equity			25,656,619						24,100,500						22,977,278
Total capital			$	28,976,738					28,147,794						27,034,774
Homebuilding debt to total capital			11.5		%				14.4		%				15.0		%
Homebuilding debt			$	3,320,119					4,047,294						4,057,496
Less: Homebuilding cash and cash equivalents			3,887,809						4,616,124						1,309,364
Net Homebuilding debt			$	(567,690)					(568,830)						2,748,132
Net Homebuilding debt to total capital (1)			(2.3)		%				(2.4)		%				10.7		%

(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 August 31, 2023, Homebuilding debt to total capital was lower compared to both November 30, 2022 and August 31, 2022, primarily as a result of an increase in stockholders' equity due to net earnings and a decrease in homebuilding debt due to debt paydowns and debt repurchases, 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.

Subject to market conditions, we plan to spin off our Multifamily and single family home for rent asset management businesses, together with some investment assets, by transferring them to a newly formed subsidiary, Quarterra Group, Inc. ("Quarterra"), and distributing the stock of that subsidiary to our stockholders. That would make us more of a pure play homebuilding company. At this time, we have deferred this transaction due to market conditions.

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:

			Nine Months Ended
			August 31,
(Dollars in thousands)			2023						2022
Homebuilding average debt outstanding			$	3,890,590					$	4,921,656
Average interest rate			4.9%						4.7%
Interest incurred			$	146,206					180,869

The maximum available borrowings on our unsecured revolving credit facility (the "Credit Facility") were as follows:

(In thousands)						August 31, 2023
Commitments - maturing in April 2024						$	350,000
Commitments - maturing in May 2027						2,225,000
Total commitments						$	2,575,000
Accordion feature						425,000
Total maximum borrowings capacity						$	3,000,000

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 Facility also provides that up to $500 million in commitments may be used for letters of credit. The maturity, debt covenants and details of the Credit Facility are unchanged from the disclosure in our Financial Condition and Capital Resources section in our Annual Report on Form 10-K for the fiscal year ended November 30, 2022. In addition to the Credit Facility, we have other letter of credit facilities with different financial institutions.

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 August 31, 2023. 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 August 31, 2023:

(Dollars in thousands)			Covenant Level						Level Achieved as of August 31, 2023
Minimum net worth test			$	13,024,540					19,231,774
Maximum leverage ratio			65.0%						(0.8)%
Liquidity test			1.00						74.91

Financial Services Warehouse Facilities

Our Financial Services segment uses residential mortgage loan 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 warehouse facilities finance LMF Commercial loan origination and securitization activities and were secured by up to 80% interests 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 March 2022, our Board of Directors approved an 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. This authorization was in addition to what was remaining of our October 2021 stock repurchase program. The details of our Class A and Class B common stock repurchases under the authorized repurchase program for the nine months ended August 31, 2023 and 2022 are included in Note 4 of the Notes to Condensed Consolidated Financial Statements.

During the nine months ended August 31, 2023, treasury shares increased by 7.8 million shares primarily due to our repurchase of 7.0 million shares of Class A and Class B common stock through our stock repurchase program. During the nine months ended August 31, 2022, treasury shares 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. During the nine months ended August 31, 2022, 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.

On September 27, 2023, the Company's Board of Directors declared a quarterly cash dividend of $0.375 per share on both its Class A and Class B common stock, payable on October 26, 2023 to holders of record at the close of business on October 12, 2023. On July 21, 2023, the company paid a cash dividend of $0.375 per share on both of its Class A and Class B common stock to holders of record at the close of business on July 7, 2023, as declared by its Board of Directors on June 22,2023. We approved and paid cash dividends of $0.375 per share for each of the four quarters of 2022 on both our 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 August 31, 2023 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 August 31, 2023 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)			August 31, 2023						November 30, 2022
Due from non-guarantor subsidiaries			$	20,808,708					17,959,091
Equity method investments			1,004,248						1,090,831
Total assets			43,764,258						40,929,435
Total liabilities			9,370,601						10,455,359

			Nine Months Ended
(In thousands)			August 31, 2023
Total revenues			$	21,850,498
Operating earnings			3,526,895
Earnings before income taxes			3,120,832
Net earnings attributable to Lennar			2,365,125

Off-Balance Sheet Arrangements

We regularly monitor the results of our Homebuilding, Multifamily and Lennar Other 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 investments. We believe that substantially all of the joint ventures were in compliance with applicable debt covenants at August 31, 2023, except for one joint venture that had an other-than-temporary impairment which is included in Note 8 of the Notes to Condensed Consolidated Financial Statements.

Homebuilding: Investments in Unconsolidated Entities

As of August 31, 2023, we had equity investments in 51 active homebuilding and land unconsolidated entities (of which 4 had recourse debt, 15 had non-recourse debt and 32 had no debt) and 48 active homebuilding and land unconsolidated entities at November 30, 2022. 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 August 31, 2023. 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						2023						2024						2025						Thereafter						Other
Bank debt without recourse to Lennar									$	1,355,552					92,095						385,080						753,811						124,566						—
Land seller and other debt without recourse to Lennar									9,131						—						—						—						9,131						—
Maximum recourse debt exposure to Lennar									10,525						—						—						—						10,525						—
Debt issuance costs									(14,712)						—						—						—						—						(14,712)
Total									$	1,360,496					92,095						385,080						753,811						144,222						(14,712)

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.

Multifamily: Investments in Unconsolidated Entities

At August 31, 2023, Multifamily had equity investments in 22 active unconsolidated entities that are engaged in multifamily residential developments (of which 19 had non-recourse debt and 3 had no debt) and 23 active unconsolidated entities at November 30, 2022. 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. 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 Canada Pension Plan Investments 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 nine months ended August 31, 2023 are included in Note 3 of the Notes to Condensed Consolidated Financial Statements.

The following table summarizes the principal maturities of our Multifamily unconsolidated entities debt as per current debt arrangements as of August 31, 2023. 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						2023						2024						2025						Thereafter						Other
Debt without recourse to Lennar									$	4,781,414					573,408						1,645,042						1,338,774						1,224,190						—
Debt issuance costs									(20,738)						—						—						—						—						(20,738)
Total									$	4,760,676					573,408						1,645,042						1,338,774						1,224,190						(20,738)

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 certain 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 reduce future carried interest payments to which we become entitled from the applicable funds and were recorded as equity in earnings (loss) in the condensed consolidated statement of operations. Our investment in the Rialto funds totaled $162.8 million and $185.1 million as of August 31, 2023 and November 30, 2022, respectively.

As of August 31, 2023 and November 30, 2022, we had strategic technology investments in unconsolidated entities of $125.8 million and $131.5 million, respectively. Our strategic technology investments through our LENX business help to enhance the homebuying and home ownership experience, and help us stay at the forefront of homebuilding innovation.

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 to which we had access through option contracts with third parties and unconsolidated JVs (i.e., controlled homesites) and homesites owned (excluding homes in inventory):

																																	Years of
August 31, 2023															Controlled Homesites						Owned Homesites						Total Homesites						Supply Owned (1)
East															94,607						31,534						126,141
Central															44,145						25,468						69,613
Texas															77,866						24,946						102,812
West															61,721						23,176						84,897
Other															5,411						1,891						7,302
Total homesites															283,750						107,015						390,765						1.5
% of total homesites															73%						27%

																																	Years of
August 31, 2022															Controlled Homesites						Owned Homesites						Total Homesites						Supply Owned (1)
East															104,754						39,994						144,748
Central															41,538						32,473						74,011
Texas															87,868						33,020						120,888
West															67,070						33,181						100,251
Other															5,758						1,891						7,649
Total homesites															306,988						140,559						447,547						2.2
% of total homesites															69%						31%

(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 9 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, 2022, except for a decrease of $979.0 million borrowings under the Financial Services' warehouse repurchase facilities and a decrease of $719.0 million in Homebuilding senior notes and other debts payable.

(3) Recently Adopted Accounting Pronouncements

See Note 1 of the Notes to Condensed Consolidated Financial Statements included under Item 1 of this Quarterly Report on Form 10-Q 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 nine months ended August 31, 2023 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 fiscal year ended November 30, 2022.