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Financial Instruments (Tables)
 3 Months Ended
Feb. 29, 2016
Fair Value Disclosures [Abstract]  
Carrying Amounts And Estimated Fair Value Of Financial Instruments
 
 
 
February 29, 2016
 
November 30, 2015
 
Fair Value
 
Carrying
 
Fair
 
Carrying
 
Fair
(In thousands)
Hierarchy
 
Amount
 
Value
 
Amount
 
Value
ASSETS
 
 
 
 
 
 
 
 
 
Rialto:
 
 
 
 
 
 
 
 
 
Loans receivable, net
Level 3
 
$
166,536

 
170,485

 
164,826

 
169,302

Investments held-to-maturity
Level 3
 
$
49,309

 
48,800

 
25,625

 
25,227

Lennar Financial Services:
 
 
 
 
 
 
 
 
 
Loans held-for-investment, net
Level 3
 
$
31,223

 
30,333

 
30,998

 
29,931

Investments held-to-maturity
Level 2
 
$
39,268

 
39,127

 
40,174

 
40,098

LIABILITIES
 
 
 
 
 
 
 
 
 
Lennar Homebuilding senior notes and other debts payable
Level 2
 
$
5,333,981

 
5,846,813

 
5,025,130

 
5,936,327

Rialto notes and other debts payable
Level 2
 
$
609,150

 
631,629

 
771,728

 
803,013

Lennar Financial Services notes and other debts payable
Level 2
 
$
625,322

 
625,322

 
858,300

 
858,300
Fair Value Measured On Recurring Basis
The Company’s financial instruments measured at fair value on a recurring basis are summarized below:
(In thousands)
Fair Value
Hierarchy
 
Fair Value at
February 29,
2016
 
Fair Value at
November 30,
2015
Rialto Financial Assets:
 
 
 
 
 
Loans held-for-sale (1)
Level 3
 
$
243,230

 
316,275

Credit default swaps
Level 2
 
$
9,770

 
6,153

Rialto Financial Liabilities:
 
 
 
 
 
Interest rate swaps and swap futures
Level 1
 
$
5,983

 
978

Lennar Financial Services Assets (Liabilities):
 
 
 
 
 
Loans held-for-sale (2)
Level 2
 
$
684,406

 
843,252

Investments available-for-sale
Level 1
 
$
45,180

 
42,827

Mortgage loan commitments
Level 2
 
$
19,113

 
13,060

Forward contracts
Level 2
 
$
(9,637
)
 
531

Mortgage servicing rights
Level 3
 
$
15,810

 
16,770


(1)
The aggregate fair value of Rialto loans held-for-sale of $243.2 million at February 29, 2016 exceeds their aggregate principal balance of $238.1 million by $5.1 million. The aggregate fair value of loans held-for-sale of $316.3 million at November 30, 2015 exceeds their aggregate principal balance of $314.3 million by $2.0 million.
(2)
The aggregate fair value of Lennar Financial Services loans held-for-sale of $684.4 million at February 29, 2016 exceeds their aggregate principal balance of $655.6 million by $28.8 million. The aggregate fair value of loans held-for-sale of $843.3 million at November 30, 2015 exceeds their aggregate principal balance of $815.0 million by $28.2 million.
Schedule Of Gains And Losses Of Financial Instruments
The changes in fair values for Level 1 and Level 2 financial instruments measured on a recurring basis are shown below by financial instrument and financial statement line item:
 
Three Months Ended
 
February 29,
 
February 28,
(In thousands)
2016
 
2015
Changes in fair value included in Lennar Financial Services revenues:
 
 
 
Loans held-for-sale
$
513

 
(7,300
)
Mortgage loan commitments
$
6,053

 
6,279

Forward contracts
$
(10,168
)
 
7,521

Changes in fair value included in Rialto revenues:
 
 
 
Financial Assets:
 
 
 
Credit default swaps
$
3,431

 
(492
)
Financial Liabilities:
 
 
 
Interest rate swaps and swap futures
$
(5,006
)
 
(33
)
Changes in fair value included in other comprehensive income (loss):
 
 
 
Lennar Financial Services investments available-for-sale
$
(437
)
 
200
Reconciliation Of Beginning And Ending Balance For The Company's Level 3 Recurring Fair Value Measurements
The following table represents the reconciliation of the beginning and ending balance for the Level 3 recurring fair value measurements:
 
Three Months Ended
 
February 29, 2016
 
February 28, 2015
 
Lennar Financial Services
 
Rialto
 
Lennar Financial Services
 
Rialto
(In thousands)
Mortgage servicing rights
 
Loans held-for-sale
 
Mortgage servicing rights
 
Loans held-for-sale
Beginning balance
$
16,770

 
316,275

 
17,353

 
113,596

Purchases/loan originations
1,619

 
305,785

 
344

 
565,515

Sales/loan originations sold, including those not settled
—

 
(381,666
)
 
—

 
(318,104
)
Disposals/settlements
(627
)
 
—

 
(779
)
 
—

Changes in fair value (1)
(1,952
)
 
4,084

 
(132
)
 
(754
)
Interest and principal paydowns
—

 
(1,248
)
 
—

 
(208
)
Ending balance
$
15,810

 
243,230

 
16,786

 
360,045


(1)
Changes in fair value for Rialto loans held-for-sale and Lennar Financial Services mortgage servicing rights are included in Rialto's and Lennar Financial Services' revenues, respectively.
Fair Value Measurements, Nonrecurring
The Company’s assets measured at fair value on a nonrecurring basis are those assets for which the Company has recorded valuation adjustments and write-offs. The fair values included in the table below represents only those assets whose carrying value were adjusted to fair value during the respective periods disclosed. The assets measured at fair value on a nonrecurring basis are summarized below:
 
 
 
Three Months Ended
 
 
 
February 29, 2016
 
February 28, 2015
(In thousands)
Fair Value
Hierarchy
 
Carrying Value
 
Fair Value
 
Total Gains (Losses) (1)
 
Carrying Value
 
Fair Value
 
Total Gains (Losses) (1)
Financial assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Rialto:
 
 
 
 
 
 
 
 
 
 
 
 
 
Impaired loans receivable
Level 3
 
$
60,666

 
58,327

 
(2,339
)
 
117,949

 
116,725

 
(1,224
)
Non-financial assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Lennar Homebuilding:
 
 
 
 
 
 
 
 
 
 
 
 
 
Land and land under development (2)
Level 3
 
$
3,827

 
3,425

 
(402
)
 
—

 
—

 
—

Rialto:
 
 
 
 
 
 
 
 
 
 
 
 
 
REO - held-for-sale (3):
 
 
 
 
 
 
 
 
 
 
 
 
 
Upon acquisition/transfer
Level 3
 
$
12,783

 
12,016

 
(767
)
 
4,883

 
4,590

 
(293
)
Upon management periodic valuations
Level 3
 
$
16,430

 
13,649

 
(2,781
)
 
5,604

 
4,479

 
(1,125
)
REO - held-and-used, net (4):
 
 
 
 
 
 
 
 
 
 
 
 
 
Upon acquisition/transfer
Level 3
 
$
5,183

 
8,667

 
3,484

 
8,637

 
8,912

 
275

Upon management periodic valuations
Level 3
 
$
3,089

 
3,000

 
(89
)
 
2,689

 
1,276

 
(1,413
)
(1)
Represents losses due to valuation adjustments, write-offs, gains (losses) from transfers or acquisitions of real estate through foreclosure and REO impairments recorded during the three months ended February 29, 2016 and February 28, 2015.
(2)
Valuation adjustments were included in Lennar Homebuilding costs and expenses in the Company's condensed consolidated statement of operations for the three months ended February 29, 2016.
(3)
REO held-for-sale assets are initially recorded at fair value less estimated costs to sell at the time of the transfer or acquisition through, or in lieu of, loan foreclosure. The fair value of REO held-for-sale is based upon appraised value at the time of foreclosure or management's best estimate. In addition, management periodically performs valuations of its REO held-for-sale. The losses upon the transfer or acquisition of REO and impairments were included in Rialto other expense, net, in the Company’s condensed consolidated statement of operations for the three months ended February 29, 2016 and February 28, 2015.
(4)
REO held-and-used, net, assets are initially recorded at fair value at the time of acquisition through, or in lieu of, loan foreclosure. The fair value of REO held-and-used, net, is based upon the appraised value at the time of foreclosure or management’s best estimate. In addition, management periodically performs valuations of its REO held-and-used, net. The gains upon acquisition of REO held-and-used, net and impairments were included in Rialto other expense, net, in the Company’s condensed consolidated statement of operations for the three months ended February 29, 2016 and February 28, 2015.