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Financial Instruments and Fair Value Disclosures (Tables)
 3 Months Ended
Feb. 28, 2018
Fair Value Disclosures [Abstract]  
Carrying Amounts And Estimated Fair Value Of Financial Instruments The following table presents the carrying amounts and estimated fair values of financial instruments held by the Company at February 28, 2018 and November 30, 2017, using available market information and what the Company believes to be appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies might have a material effect on the estimated fair value amounts. 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.
 
 
 
February 28, 2018
 
November 30, 2017
(In thousands)
Fair Value
Hierarchy
 
Carrying
Amount
 
Fair Value
 
Carrying
Amount
 
Fair Value
ASSETS
 
 
 
 
 
 
 
 
 
Rialto:
 
 
 
 
 
 
 
 
 
Loans receivable, net
Level 3
 
$
1,932

 
1,932

 
1,933

 
1,933

Investments held-to-maturity
Level 3
 
$
210,882

 
229,551

 
179,659

 
199,190

Lennar Financial Services:
 
 
 
 
 
 
 
 
 
Loans held-for-investment, net
Level 3
 
$
69,832

 
63,171

 
44,193

 
41,795

Investments held-to-maturity
Level 2
 
$
60,831

 
60,441

 
52,327

 
52,189

LIABILITIES
 
 
 
 
 
 
 
 
 
Lennar Homebuilding senior notes and other debts payable
Level 2
 
$
10,382,540

 
10,476,731

 
6,410,003

 
6,598,848

Rialto notes payable and other debts payable
Level 2
 
$
438,879

 
448,114

 
625,081

 
644,644

Lennar financial Services notes and other debts payable
Level 2
 
$
772,240

 
772,240

 
937,431

 
937,431
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 28,
2018
 
Fair Value at
November 30,
2017
Rialto Financial Assets:
 
 
 
 
 
RMF loans held-for-sale (1)
Level 3
 
$
123,398

 
234,403

Credit default swaps (2)
Level 2
 
$
1,084

 
995

Lennar Financial Services Assets (Liabilities):
 
 
 
 
 
Loans held-for-sale (3)
Level 2
 
$
689,172

 
937,516

Investments available-for-sale
Level 1
 
$
57,768

 
57,439

Mortgage loan commitments
Level 2
 
$
11,654

 
9,873

Forward contracts
Level 2
 
$
4,844

 
1,681

Mortgage servicing rights
Level 3
 
$
36,772

 
31,163


(1)
The aggregate fair value of Rialto loans held-for-sale of $123.4 million at February 28, 2018 is below their aggregate principal balance of $125.5 million by $2.1 million. The aggregate fair value of loans held-for-sale of $234.4 million at November 30, 2017 was below their aggregate principal balance of $235.4 million by $1.0 million.
(2)
Rialto's credit default swaps are included within Rialto's other assets.
(3)
The aggregate fair value of Lennar Financial Services loans held-for-sale of $689.2 million at February 28, 2018 exceeds their aggregate principal balance of $676.8 million by $12.4 million. The aggregate fair value of Lennar Financial Services loans held-for-sale of $937.5 million at November 30, 2017 exceeded their aggregate principal balance of $908.8 million by $28.7 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
 
February 28,
(In thousands)
2018
 
2017
Changes in fair value included in Lennar Financial Services revenues:
 
 
 
Loans held-for-sale
$
(16,297
)
 
13,300

Mortgage loan commitments
$
1,781

 
6,220

Forward contracts
$
3,163

 
(28,214
)
Changes in fair value included in Rialto revenues:
 
 
 
Financial Assets:
 
 
 
Credit default swaps
$
89

 
(431
)
Changes in fair value included in other comprehensive income (loss), net of tax:
 
 
 
Lennar Financial Services investment available-for-sale
$
(658
)
 
972
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 28,
 
2018
 
2017
 
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
$
31,163

 
234,403

 
23,930

 
126,947

Purchases/loan originations
2,288

 
237,965

 
2,846

 
394,340

Sales/loan originations sold, including those not settled
—

 
(347,712
)
 
—

 
(477,716
)
Disposals/settlements
(1,213
)
 
—

 
(891
)
 
—

Changes in fair value (1)
4,534

 
753

 
612

 
1,420

Interest and principal paydowns
—

 
(2,011
)
 
—

 
(52
)
Ending balance
$
36,772

 
123,398

 
26,497

 
44,939


(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 February 28,
 
 
 
2018
 
2017
(In thousands)
Fair Value
Hierarchy
 
Carrying Value
 
Fair Value
 
Total Gains (Losses), Net (1)
 
Carrying Value
 
Fair Value
 
Total Losses, Net (1)
Financial assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Rialto:
 
 
 
 
 
 
 
 
 
 
 
 
 
Impaired loans receivable
Level 3
 
$
—

 
—

 
—

 
31,550

 
18,885

 
(12,665
)
Non-financial assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Lennar Homebuilding:
 
 
 
 
 
 
 
 
 
 
 
 
 
Land and land under development (2)
Level 3
 
$
52,929

 
43,565

 
(9,364
)
 
—

 
—

 
—

Rialto:
 
 
 
 
 
 
 
 
 
 
 
 
 
REO, net (3):
 
 
 
 
 
 
 
 
 
 
 
 
 
Upon acquisition/transfer
Level 3
 
$
—

 
—

 
—

 
8,850

 
8,394

 
(456
)
Upon management periodic valuations
Level 3
 
$
16,453

 
10,968

 
(5,485
)
 
52,425

 
40,096

 
(12,329
)

(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 28, 2018 and 2017.
(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 28, 2018 and 2017.
(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 months ended February 28, 2018 and 2017.
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 three months ended February 28, 2018:
 
Three Months Ended
 
February 28, 2018
Unobservable inputs
 
Average selling price
$572,000
Absorption rate per quarter (homes)
6
Discount rate
20%