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Financial Instruments and Fair Value Disclosures (Tables)
 6 Months Ended
May 31, 2019
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 May 31, 2019 and November 30, 2018, 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.
 
 
 
May 31, 2019
 
November 30, 2018
(In thousands)
Fair Value
Hierarchy
 
Carrying
Amount
 
Fair Value
 
Carrying
Amount
 
Fair Value
ASSETS
 
 
 
 
 
 
 
 
 
Financial Services:
 
 
 
 
 
 
 
 
 
Loans held-for-investment, net
Level 3
 
$
76,248

 
71,872

 
70,216

 
63,794

Investments held-to-maturity
Level 3
 
$
167,014

 
194,796

 
136,982

 
149,767

Investments held-to-maturity
Level 2
 
$
32,398

 
32,366

 
52,490

 
52,220

Lennar Other:
 
 
 
 
 
 
 
 
 
Investments held-to-maturity
Level 3
 
$
60,449

 
64,364

 
59,974

 
72,986

LIABILITIES
 
 
 
 
 
 
 
 
 
Homebuilding senior notes and other debts payable
Level 2
 
$
9,390,941

 
9,560,305

 
8,543,868

 
8,336,166

Financial Services notes and other debts payable
Level 2
 
$
1,214,017

 
1,215,548

 
1,558,702

 
1,559,718

Multifamily notes payable
Level 2
 
$
39,662

 
39,662

 
—

 
—

Lennar Other notes and other debts payable
Level 2
 
$
15,178

 
15,178

 
14,488

 
14,488
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,
2019
 
Fair Value at
November 30,
2018
Financial Services Assets (Liabilities):
 
 
 
 
 
RMF loans held-for-sale (1)
Level 3
 
$
259,599

 
61,691

Financial Services residential loans held-for-sale (2)
Level 2
 
$
1,160,676

 
1,152,198

Investments available-for-sale
Level 1
 
$
3,356

 
4,161

Mortgage loan commitments
Level 2
 
$
25,225

 
16,373

Forward contracts
Level 2
 
$
(11,273
)
 
(10,360
)
Mortgage servicing rights
Level 3
 
$
29,419

 
37,206


(1)
The aggregate fair value of RMF loans held-for-sale of $259.6 million at May 31, 2019 exceeded their aggregate principal balance of $255.7 million by $3.9 million. The aggregate fair value of RMF loans held-for-sale of $61.7 million at November 30, 2018 exceeded their aggregate principal balance of $61.0 million by $0.7 million.
(2)
The aggregate fair value of Financial Services residential loans held-for-sale of $1.2 billion at May 31, 2019 exceeded their aggregate principal balance of $1.1 billion by $40.2 million. The aggregate fair value of Financial Services residential loans held-for-sale of $1.2 billion at November 30, 2018 exceeded their aggregate principal balance of $1.1 billion by $37.3 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)
2019
 
2018
 
2019
 
2018
Changes in fair value included in Financial Services revenues:
 
 
 
 
 
 
 
Loans held-for-sale
$
13,007

 
16,586

 
2,887

 
289

Mortgage loan commitments
9,111

 
13,438

 
8,852

 
15,219

Forward contracts
(9,766
)
 
(11,039
)
 
(913
)
 
(7,876
)
Investments available-for-sale
176

 
126

 
176

 
126

Changes in fair value included in other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
Financial Services investments available-for-sale
561

 
(589
)
 
769

 
(1,247
)
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,
 
2019
 
2018
 
Financial Services
(In thousands)
Mortgage servicing rights
 
RMF loans held-for-sale
 
Mortgage servicing rights
 
RMF loans held-for-sale
Beginning balance
$
35,448

 
131,042

 
36,772

 
123,398

Purchases/loan originations
672

 
435,189

 
1,857

 
425,870

Sales/loan originations sold, including those not settled
—

 
(299,962
)
 
—

 
(228,141
)
Disposals/settlements
(1,378
)
 
(9,920
)
 
(3,326
)
 
—

Changes in fair value (1)
(5,323
)
 
3,022

 
(711
)
 
2,618

Interest and principal paydowns
—

 
228

 
—

 
1,628

Ending balance
$
29,419

 
259,599

 
34,592

 
325,373

 
Six Months Ended May 31,
 
2019
 
2018
 
Financial Services
(In thousands)
Mortgage servicing rights
 
RMF loans held-for-sale
 
Mortgage servicing rights
 
RMF loans held-for-sale
Beginning balance
$
37,206

 
61,691

 
31,163

 
234,403

Purchases/loan originations
2,259

 
705,311

 
4,145

 
663,835

Sales/loan originations sold, including those not settled
—

 
(500,549
)
 
—

 
(575,853
)
Disposals/settlements
(2,287
)
 
(9,920
)
 
(4,539
)
 
—

Changes in fair value (1)
(7,759
)
 
3,324

 
3,823

 
3,370

Interest and principal paydowns
—

 
(258
)
 
—

 
(382
)
Ending balance
$
29,419

 
259,599

 
34,592

 
325,373


(1)
Changes in fair value for RMF loans held-for-sale and Financial Services mortgage servicing rights are included in RMF's and 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,
 
 
 
2019
 
2018
(In thousands)
Fair Value
Hierarchy
 
Carrying Value
 
Fair Value
 
Total Losses, Net (1)
 
Carrying Value
 
Fair Value
 
Total Losses, Net (1)
Non-financial assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Homebuilding:
 
 
 
 
 
 
 
 
 
 
 
 
 
Land and land under development (1)
Level 3
 
$
—

 
—

 
—

 
13,858

 
3,122

 
(10,736
)

 
 
 
Six Months Ended May 31,
 
 
 
2019
 
2018
(In thousands)
Fair Value
Hierarchy
 
Carrying Value
 
Fair Value
 
Total Losses, Net (1)
 
Carrying Value
 
Fair Value
 
Total Losses, Net (1)
Non-financial assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Homebuilding:
 
 
 
 
 
 
 
 
 
 
 
 
 
Land and land under development (1)
Level 3
 
$
6,954

 
3,001

 
(3,953
)
 
66,787

 
46,687

 
(20,100
)

(1)
Valuation adjustments were included in Homebuilding costs and expenses in the Company's condensed consolidated statements of operations and comprehensive income (loss)
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, 2018:
 
Six Months Ended
 
May 31, 2018
Unobservable inputs
Range
Average selling price
$233,000
-
$572,000
Absorption rate per quarter (homes)
5
-
16
Discount rate
20%