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Financial Instruments and Fair Value Disclosures (Tables)
 3 Months Ended
Feb. 29, 2020
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 29, 2020 and November 30, 2019, 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 29, 2020
 
November 30, 2019
(In thousands)
Fair Value Hierarchy
 
Carrying Amount
 
Fair Value
 
Carrying Amount
 
Fair Value
ASSETS
 
 
 
 
 
 
 
 
 
Financial Services:
 
 
 
 
 
 
 
 
 
Loans held-for-investment, net
Level 3
 
$
70,763

 
67,266

 
73,867

 
69,708

Investments held-to-maturity
Level 3
 
$
165,303

 
200,787

 
166,012

 
195,962

Investments held-to-maturity
Level 2
 
$
18,642

 
18,680

 
24,277

 
24,257

Lennar Other:
 
 
 
 
 
 
 
 
 
Investments held-to-maturity
Level 3
 
$
—

 
—

 
54,117

 
56,415

LIABILITIES
 
 
 
 
 
 
 
 
 
Homebuilding senior notes and other debts payable, net
Level 2
 
$
8,115,498

 
8,535,225

 
7,776,638

 
8,144,632

Financial Services notes and other debts payable, net
Level 2
 
$
990,152

 
992,011

 
1,745,755

 
1,745,782

Multifamily note payable, net
Level 2
 
$
—

 
—

 
36,125

 
36,125

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

 
15,178

 
15,178

 
15,178
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,
2020
 
Fair Value at
November 30,
2019
Financial Services Assets:
 
 
 
 
 
Residential loans held-for-sale (1)
Level 2
 
$
870,294

 
1,447,715

LMF Commercial loans held-for-sale (2)
Level 3
 
$
300,402

 
197,224

Mortgage servicing rights
Level 3
 
$
12,576

 
24,679

Lennar Other:
 
 
 
 
 
Investments available-for-sale
Level 3
 
$
53,402

 
—


(1)
The aggregate fair value of residential loans held-for-sale of $870.3 million at February 29, 2020 exceeded their aggregate principal balance of $835.6 million by $34.7 million. The aggregate fair value of residential loans held-for-sale of $1.4 billion at November 30, 2019 exceeded their aggregate principal balance of $1.4 billion by $42.2 million.
(2)
The aggregate fair value of LMF Commercial loans held-for-sale of $300.4 million at February 29, 2020 exceeded their aggregate principal balance of $294.1 million by $6.4 million. The aggregate fair value of LMF Commercial loans held-for-sale of $197.2 million at November 30, 2019 exceeded their aggregate principal balance of $196.3 million by $0.9 million.
Schedule of Unobservable Inputs Used in Discounted Cash Flow Model to Determine the Fair Value of Communities The key assumptions, which are generally unobservable inputs, used in the valuation of the mortgage servicing rights include mortgage prepayment rates, discount rates and delinquency rates and are noted below:
 
Three Months Ended
 
February 29, 2020
Unobservable inputs
 
Mortgage prepayment rate
21%
Discount rate
13%
Delinquency rate
9%

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 29, 2020:
 
Three Months Ended
 
February 29, 2020
Unobservable inputs
Range
Average selling price
$
201,000

-
$970,000
Absorption rate per quarter (homes)
3

-
15
Discount rate
20%
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 29,
 
February 28,
(In thousands)
2020
 
2019
Changes in fair value included in Financial Services revenues:
 
 
 
Loans held-for-sale
$
(7,493
)
 
(10,120
)
Mortgage loan commitments
14,895

 
(259
)
Forward contracts
(9,361
)
 
8,853

Changes in fair value included in other comprehensive income (loss), net of tax:
 
 
 
Financial Services investments available-for-sale
(46
)
 
208
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 in the Company's Financial Services segment:
 
Three Months Ended
 
February 29, 2020
 
February 28, 2019
(In thousands)
Mortgage servicing rights
 
LMF Commercial loans held-for-sale
 
Mortgage servicing rights
 
LMF Commercial loans held-for-sale
Beginning balance
$
24,679

 
197,224

 
37,206

 
61,691

Purchases/loan originations
746

 
412,250

 
1,586

 
270,123

Sales/loan originations sold, including those not settled
—

 
(314,439
)
 
—

 
(200,588
)
Disposals/settlements
(1,289
)
 
—

 
(908
)
 
—

Changes in fair value (1)
(11,560
)
 
5,601

 
(2,436
)
 
(486
)
Interest and principal paydowns
—

 
(234
)
 
—

 
302

Ending balance
$
12,576

 
300,402

 
35,448

 
131,042


(1)
Changes in fair value for LMF Commercial loans held-for-sale and Financial Services mortgage servicing rights are included in Financial Services' revenues.
Fair Value Measurements, Nonrecurring The assets measured at fair value on a nonrecurring basis are summarized below:
 
 
 
Three Months Ended
 
 
 
February 29, 2020
 
February 28, 2019
(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:
 
 
 
 
 
 
 
 
 
 
 
 
 
Finished homes and construction in progress (1)
Level 3
 
$
73,006

 
59,284

 
(13,722
)
 
—

 
—

 
—

Land and land under development (1)
Level 3
 
$
22,453

 
11,660

 
(10,793
)
 
6,954

 
3,001

 
(3,953
)

(1)
Valuation adjustments were included in Homebuilding costs and expenses in the Company's condensed consolidated statements of operations and comprehensive income (loss).
The table below summarizes communities reviewed for indicators of impairment and communities with valuation adjustments recorded:
 
 
 
Communities with valuation adjustments

 
# of communities with potential indicator of impairment
 
# of communities
 
Fair Value
(in thousands)
 
Valuation Adjustments
(in thousands)
Three Months Ended
 
 
 
 
 
 
 
February 29, 2020
33
 
6

 
$45,123
 
$19,944
February 28, 2019
54
 
—

 
—
 
—