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Financial Instruments and Fair Value Disclosures (Tables)
 6 Months Ended
May 31, 2017
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, 2017
 
November 30, 2016
 
Fair Value
 
Carrying
 
Fair
 
Carrying
 
Fair
(In thousands)
Hierarchy
 
Amount
 
Value
 
Amount
 
Value
ASSETS
 
 
 
 
 
 
 
 
 
Rialto:
 
 
 
 
 
 
 
 
 
Loans receivable, net
Level 3
 
$
65,326

 
65,326

 
111,608

 
113,747

Investments held-to-maturity
Level 3
 
$
112,452

 
112,747

 
71,260

 
69,992

Lennar Financial Services:
 
 
 
 
 
 
 
 
 
Loans held-for-investment, net
Level 3
 
$
32,691

 
31,211

 
30,004

 
31,233

Investments held-to-maturity
Level 2
 
$
54,824

 
54,857

 
41,991

 
42,058

LIABILITIES
 
 
 
 
 
 
 
 
 
Lennar Homebuilding senior notes and other debts payable
Level 2
 
$
5,767,689

 
5,964,645

 
4,575,977

 
4,669,643

Rialto notes and other debts payable
Level 2
 
$
781,845

 
803,943

 
622,335

 
646,366

Lennar Financial Services notes and other debts payable
Level 2
 
$
792,623

 
792,623

 
1,077,228

 
1,077,228
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,
2017
 
Fair Value at
November 30,
2016
Rialto Financial Assets:
 
 
 
 
 
RMF loans held-for-sale (1)
Level 3
 
$
82,803

 
126,947

Credit default swaps (2)
Level 2
 
$
2,046

 
2,863

Rialto Financial Liabilities:
 
 
 
 
 
Interest rate swaps and swap futures (3)
Level 2
 
$
906

 
6

Lennar Financial Services Assets (Liabilities):
 
 
 
 
 
Loans held-for-sale (4)
Level 2
 
$
820,443

 
939,405

Investments available-for-sale
Level 1
 
$
56,005

 
53,570

Mortgage loan commitments
Level 2
 
$
18,372

 
7,437

Forward contracts
Level 2
 
$
(6,796
)
 
26,467

Mortgage servicing rights
Level 3
 
$
27,370

 
23,930


(1)
The aggregate fair value of RMF loans held-for-sale of $82.8 million at May 31, 2017 exceeds their aggregate principal balance of $80.4 million by $2.4 million. The aggregate fair value of loans held-for-sale of $126.9 million at November 30, 2016 was below their aggregate principal balance of $127.8 million by $0.9 million.
(2)
Rialto's credit default swaps are included within Rialto's other assets.
(3)
Rialto's 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 $820.4 million at May 31, 2017 exceeds their aggregate principal balance of $788.0 million by $32.4 million. The aggregate fair value of Lennar Financial Services loans held-for-sale of $939.4 million at November 30, 2016 exceeded their aggregate principal balance of $931.0 million by $8.4 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)
2017
 
2016
 
2017
 
2016
Changes in fair value included in Lennar Financial Services revenues:
 
 
 
 
 
 
 
Loans held-for-sale
$
10,737

 
3,121

 
24,037

 
3,634

Mortgage loan commitments
$
4,715

 
(231
)
 
10,935

 
5,822

Forward contracts
$
(5,049
)
 
7,988

 
(33,263
)
 
(2,180
)
Investments available-for-sale
$
(4
)
 
6

 
(4
)
 
6

Changes in fair value included in Rialto revenues:
 
 
 
 
 
 
 
Financial Assets:
 
 
 
 
 
 
 
Credit default swaps
$
(885
)
 
(3,408
)
 
(1,316
)
 
23

Financial Liabilities:
 
 
 
 
 
 
 
Interest rate swaps and swap futures
$
(787
)
 
5,879

 
(900
)
 
873

Changes in fair value included in other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
Lennar Financial Services investments available-for-sale
$
419

 
919

 
1,391

 
482
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,
 
2017
 
2016
 
Lennar Financial Services
 
Rialto
 
Lennar Financial Services
 
Rialto
(In thousands)
Mortgage servicing rights
 
RMF loans held-for-sale
 
Mortgage servicing rights
 
RMF loans held-for-sale
Beginning balance
$
26,497

 
44,939

 
15,810

 
243,230

Purchases/loan originations
2,866

 
429,320

 
2,375

 
348,188

Sales/loan originations sold, including those not settled
—

 
(392,678
)
 
—

 
(386,226
)
Disposals/settlements
(904
)
 
—

 
(943
)
 
—

Changes in fair value (1)
(1,089
)
 
1,078

 
999

 
(5,293
)
Interest and principal paydowns
—

 
144

 
—

 
(484
)
Ending balance
$
27,370

 
82,803

 
18,241

 
199,415

 
Six Months Ended May 31,
 
2017
 
2016
 
Lennar Financial Services
 
Rialto
 
Lennar Financial Services
 
Rialto
(In thousands)
Mortgage servicing rights
 
RMF loans held-for-sale
 
Mortgage servicing rights
 
RMF loans held-for-sale
Beginning balance
$
23,930

 
126,947

 
16,770

 
316,275

Purchases/loan originations
5,712

 
823,660

 
3,994

 
653,973

Sales/loan originations sold, including those not settled
—

 
(870,394
)
 
—

 
(767,892
)
Disposals/settlements
(1,795
)
 
—

 
(1,570
)
 
—

Changes in fair value (1)
(477
)
 
2,498

 
(953
)
 
(1,209
)
Interest and principal paydowns
—

 
92

 
—

 
(1,732
)
Ending balance
$
27,370

 
82,803

 
18,241

 
199,415


(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,
 
 
 
2017
 
2016
(In thousands)
Fair Value
Hierarchy
 
Carrying Value
 
Fair Value
 
Total Losses, Net (1)
 
Carrying Value
 
Fair Value
 
Total Losses, Net (1)
Financial assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Rialto:
 
 
 
 
 
 
 
 
 
 
 
 
 
Impaired loans receivable
Level 3
 
$
4

 
—

 
(4
)
 
56,010

 
51,628

 
(4,382
)
FDIC Portfolios loans held-for-sale
Level 3
 
$
29,030

 
23,812

 
(5,218
)
 
—

 
—

 
—

Non-financial assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Lennar Homebuilding:
 
 
 
 
 
 
 
 
 
 
 
 
 
Finished homes and construction in progress (2)
Level 3
 
$
6,659

 
2,745

 
(3,914
)
 
—

 
—

 
—

Land and land under development (2)
Level 3
 
$
6,771

 
3,094

 
(3,677
)
 
1,855

 
1,500

 
(355
)
Rialto:
 
 
 
 
 
 
 
 
 
 
 
 
 
REO, net (3):
 
 
 
 
 
 
 
 
 
 
 
 
 
Upon acquisition/transfer
Level 3
 
$
21,429

 
20,271

 
(1,158
)
 
15,470

 
14,809

 
(661
)
Upon management periodic valuations
Level 3
 
$
50,075

 
36,250

 
(13,825
)
 
19,719

 
14,983

 
(4,736
)

 
 
 
Six Months Ended May 31,
 
 
 
2017
 
2016
(In thousands)
Fair Value
Hierarchy
 
Carrying Value
 
Fair Value
 
Total Losses, Net (1)
 
Carrying Value
 
Fair Value
 
Total Gains (Losses), Net (1)
Financial assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Rialto:
 
 
 
 
 
 
 
 
 
 
 
 
 
Impaired loans receivable
Level 3
 
$
31,554

 
18,885

 
(12,669
)
 
63,627

 
56,906

 
(6,721
)
FDIC Portfolios loans held-for-sale
Level 3
 
$
29,030

 
23,812

 
(5,218
)
 
—

 
—

 
—

Non-financial assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Lennar Homebuilding:
 
 
 
 
 
 
 
 
 
 
 
 
 
Finished homes and construction in progress (2)
Level 3
 
$
6,659

 
2,745

 
(3,914
)
 
—

 
—

 
—

Land and land under development (2)
Level 3
 
$
6,771

 
3,094

 
(3,677
)
 
5,682

 
4,925

 
(757
)
Rialto:
 
 
 
 
 
 
 
 
 
 
 
 
 
REO, net (3):
 
 
 
 
 
 
 
 
 
 
 
 
 
Upon acquisition/transfer
Level 3
 
$
30,303

 
28,690

 
(1,613
)
 
33,436

 
35,492

 
2,056

Upon management periodic valuations
Level 3
 
$
84,330

 
58,176

 
(26,154
)
 
39,238

 
31,632

 
(7,606
)
(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, 2017 and 2016.
(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, 2017 and 2016.
(3)
The fair value of REO, net is based upon appraised value at the time of foreclosure or management's best estimate. In addition, management periodically performs valuations of its REO. The losses, net 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, 2017 and 2016.
Schedule of Unobservable Inputs Used in Discounted Cash Flow Model to Determine the Fair Value of Communities 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, 2017:
 
Six Months Ended
 
May 31, 2017
Unobservable inputs
Range
Average selling price
$
125,000

-
$567,000
Absorption rate per quarter (homes)
4

-
10
Discount rate
20%