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Financial Instruments and Fair Value Disclosures (Tables)
 6 Months Ended
May 31, 2016
Fair Value Disclosures [Abstract]  
Carrying Amounts And Estimated Fair Value Of Financial Instruments The table excludes cash and cash equivalents, restricted cash, receivables, net and accounts payable, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments.
 
 
 
May 31, 2016
 
November 30, 2015
 
Fair Value
 
Carrying
 
Fair
 
Carrying
 
Fair
(In thousands)
Hierarchy
 
Amount
 
Value
 
Amount
 
Value
ASSETS
 
 
 
 
 
 
 
 
 
Rialto:
 
 
 
 
 
 
 
 
 
Loans receivable, net
Level 3
 
$
163,805

 
166,599

 
164,826

 
169,302

Investments held-to-maturity
Level 3
 
$
60,076

 
59,881

 
25,625

 
25,227

Lennar Financial Services:
 
 
 
 
 
 
 
 
 
Loans held-for-investment, net
Level 3
 
$
30,671

 
29,206

 
30,998

 
29,931

Investments held-to-maturity
Level 2
 
$
35,307

 
35,362

 
40,174

 
40,098

LIABILITIES
 
 
 
 
 
 
 
 
 
Lennar Homebuilding senior notes and other debts payable
Level 2
 
$
5,316,235

 
5,770,652

 
5,025,130

 
5,936,327

Rialto notes and other debts payable
Level 2
 
$
543,310

 
562,888

 
771,728

 
803,013

Lennar Financial Services notes and other debts payable
Level 2
 
$
854,055

 
854,055

 
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
May 31,
2016
 
Fair Value at
November 30,
2015
Rialto Financial Assets:
 
 
 
 
 
Loans held-for-sale (1)
Level 3
 
$
199,415

 
316,275

Credit default swaps (2)
Level 2
 
$
3,396

 
6,153

Rialto Financial Liabilities:
 
 
 
 
 
Interest rate swaps and swap futures (3)
Level 1
 
$
105

 
978

Lennar Financial Services Assets (Liabilities):
 
 
 
 
 
Loans held-for-sale (4)
Level 2
 
$
862,289

 
843,252

Investments available-for-sale
Level 1
 
$
49,083

 
42,827

Mortgage loan commitments
Level 2
 
$
18,882

 
13,060

Forward contracts
Level 2
 
$
(1,649
)
 
531

Mortgage servicing rights
Level 3
 
$
18,241

 
16,770


(1)
The aggregate fair value of Rialto loans held-for-sale of $199.4 million at May 31, 2016 is below their aggregate principal balance of $200.0 million by $0.6 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)
Rialto credit default swaps are included within Rialto's other assets.
(3)
Rialto interest rate swaps and swap futures are included within Rialto's other liabilities.
(4)
The aggregate fair value of Lennar Financial Services loans held-for-sale of $862.3 million at May 31, 2016 exceeds their aggregate principal balance of $830.4 million by $31.9 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 Measured on a Recurring Basis 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
 
Six Months Ended
 
May 31,
 
May 31,
(In thousands)
2016
 
2015
 
2016
 
2015
Changes in fair value included in Lennar Financial Services revenues:
 
 
 
 
 
 
 
Loans held-for-sale
$
3,121

 
4,181

 
3,634

 
(3,119
)
Mortgage loan commitments
$
(231
)
 
(84
)
 
5,822

 
6,195

Forward contracts
$
7,988

 
210

 
(2,180
)
 
7,731

Investments available-for-sale
$
6

 
23

 
6

 
23

Changes in fair value included in Rialto revenues:
 
 
 
 
 
 
 
Financial Assets:
 
 
 
 
 
 
 
Credit default swaps
$
(3,408
)
 
(332
)
 
23

 
(824
)
Financial Liabilities:
 
 
 
 
 
 
 
Interest rate swaps and swap futures
$
5,879

 
464

 
873

 
431

Changes in fair value included in other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
Lennar Financial Services investments available-for-sale
$
919

 
(94
)
 
482

 
106
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 May 31,
 
2016
 
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
$
15,810

 
243,230

 
16,786

 
360,045

Purchases/loan originations
2,375

 
348,188

 
652

 
683,179

Sales/loan originations sold, including those not settled
—

 
(386,226
)
 
—

 
(723,479
)
Disposals/settlements
(943
)
 
—

 
(1,095
)
 
—

Changes in fair value (1)
999

 
(5,293
)
 
161

 
(1,547
)
Interest and principal paydowns
—

 
(484
)
 
—

 
(161
)
Ending balance
$
18,241

 
199,415

 
16,504

 
318,037

 
Six Months Ended May 31,
 
2016
 
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
3,994

 
653,973

 
996

 
1,248,694

Sales/loan originations sold, including those not settled
—

 
(767,892
)
 
—

 
(1,041,583
)
Disposals/settlements
(1,570
)
 
—

 
(1,874
)
 
—

Changes in fair value (1)
(953
)
 
(1,209
)
 
29

 
(2,301
)
Interest and principal paydowns
—

 
(1,732
)
 
—

 
(369
)
Ending balance
$
18,241

 
199,415

 
16,504

 
318,037

(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 assets measured at fair value on a nonrecurring basis are summarized below:
 
 
 
Three Months Ended May 31,
 
 
 
2016
 
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
 
$
56,010

 
51,628

 
(4,382
)
 
81,108

 
79,523

 
(1,585
)
Non-financial assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Lennar Homebuilding:
 
 
 
 
 
 
 
 
 
 
 
 
 
Finished homes and construction in progress (2)
Level 3
 
$
—

 
—

 
—

 
46,339

 
36,736

 
(9,603
)
Land and land under development (2)
Level 3
 
$
1,855

 
1,500

 
(355
)
 
—

 
—

 
—

Rialto:
 
 
 
 
 
 
 
 
 
 
 
 
 
REO - held-for-sale (3):
 
 
 
 
 
 
 
 
 
 
 
 
 
Upon acquisition/transfer
Level 3
 
$
12,950

 
12,173

 
(777
)
 
8,733

 
8,209

 
(524
)
Upon management periodic valuations
Level 3
 
$
17,892

 
13,870

 
(4,022
)
 
11,258

 
8,828

 
(2,430
)
REO - held-and-used, net (4):
 
 
 
 
 
 
 
 
 
 
 
 
 
Upon acquisition/transfer
Level 3
 
$
2,520

 
2,636

 
116

 
4,689

 
5,431

 
742

Upon management periodic valuations
Level 3
 
$
1,827

 
1,113

 
(714
)
 
—

 
—

 
—

 
 
 
Six Months Ended May 31,
 
 
 
2016
 
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
 
$
63,627

 
56,906

 
(6,721
)
 
103,209

 
100,400

 
(2,809
)
Non-financial assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Lennar Homebuilding:
 
 
 
 
 
 
 
 
 
 
 
 
 
Finished homes and construction in progress (2)
Level 3
 
$
—

 
—

 
—

 
46,339

 
36,736

 
(9,603
)
Land and land under development (2)
Level 3
 
$
5,682

 
4,925

 
(757
)
 
—

 
—

 
—

Rialto:
 
 
 
 
 
 
 
 
 
 
 
 
 
REO - held-for-sale (3):
 
 
 
 
 
 
 
 
 
 
 
 
 
Upon acquisition/transfer
Level 3
 
$
25,733

 
24,189

 
(1,544
)
 
13,617

 
12,800

 
(817
)
Upon management periodic valuations
Level 3
 
$
34,322

 
27,519

 
(6,803
)
 
16,862

 
13,307

 
(3,555
)
REO - held-and-used, net (4):
 
 
 
 
 
 
 
 
 
 
 
 
 
Upon acquisition/transfer
Level 3
 
$
7,703

 
11,303

 
3,600

 
13,326

 
14,343

 
1,017

Upon management periodic valuations
Level 3
 
$
4,916

 
4,113

 
(803
)
 
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 and six months ended May 31, 2016 and 2015.
(2)
Valuation adjustments were included in Lennar Homebuilding costs and expenses in the Company's condensed consolidated statement of operations for the three and six months ended May 31, 2016 and 2015.
(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 and six months ended May 31, 2016 and 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 and six months ended May 31, 2016 and 2015.
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques The table below summarizes the most significant unobservable inputs used in the Company's discounted cash flow model to determine the fair value of its communities for which the Company recorded valuation adjustments during the six months ended May 31, 2015:
 
Six Months Ended
 
May 31, 2015
Unobservable inputs
 
Average selling price

$1,300,000

Absorption rate per quarter (homes)
9

Discount rate
12
%