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Financial Instruments and Fair Value Disclosures (Tables)
3 Months Ended
Feb. 28, 2022
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 or issued by the Company at February 28, 2022 and November 30, 2021, 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, 2022November 30, 2021
(In thousands)Fair Value HierarchyCarrying AmountFair ValueCarrying AmountFair Value
ASSETS
Financial Services:
Loans held-for-investment, netLevel 3$33,168 33,179 44,582 44,594 
Investments held-to-maturityLevel 3156,587 175,538 157,808 184,495 
LIABILITIES
Homebuilding senior notes and other debts payable, netLevel 2$4,639,222 4,889,702 4,652,338 5,046,721 
Financial Services notes and other debts payable, netLevel 21,197,360 1,198,107 1,726,026 1,726,860 
Fair Value Measured On Recurring Basis
The Company’s financial instruments measured at fair value on a recurring basis are summarized below:
Fair Value HierarchyFair Value at
(In thousands)February 28, 2022November 30, 2021
Financial Services Assets:
Residential loans held-for-saleLevel 2$1,113,808 1,636,283 
LMF Commercial loans held-for-saleLevel 385,795 68 
Mortgage servicing rightsLevel 32,793 2,492 
Lennar Other:
Investments in equity securitiesLevel 1$502,755 906,539 
Investments available-for-saleLevel 334,760 41,654 
Residential and LMF Commercial loans held-for-sale in the table above include:
February 28, 2022November 30, 2021
(In thousands)Aggregate Principal BalanceChange in Fair ValueAggregate Principal BalanceChange in Fair Value
Residential loans held-for-sale$1,091,676 22,132 1,586,764 49,519 
LMF Commercial loans held-for-sale
86,385 (590)— 68 
Schedule of Unobservable Inputs Used in Discounted Cash Flow Model to Determine the Fair Value of Communities
February 28, 2022
Discount rates at purchase6%84%
Coupon rates2.0%5.3%
Distribution datesOctober 2027December 2028
Stated maturity datesOctober 2050December 2051
The key assumptions, which are generally unobservable inputs, used in the valuation of the mortgage servicing rights include mortgage prepayment rates, discount rates and delinquency rates and are noted below:
Unobservable inputsAs of February 28, 2022As of November 30, 2021
Mortgage prepayment rate11%13%
Discount rate13%13%
Delinquency rate 5%4%
Schedule Of Gains And Losses Of Financial Instruments Measured on a Recurring Basis
The changes in fair values for Level 1 and Level 2 financial instruments measured on a recurring basis are shown below by financial instrument and financial statement line item:
Three Months Ended
February 28,
(In thousands)20222021
Changes in fair value included in Financial Services revenues:
Loans held-for-sale$(27,387)(35,021)
Mortgage loan commitments13,797 (4,915)
Forward contracts9,990 34,238 
Changes in fair value included in Lennar Other unrealized gain (loss) from technology investments:
Investments in equity securities$(395,170)469,745 
Changes in fair value included in other comprehensive gain (loss), net of tax:
Lennar Other investments available-for-sale$742 (942)
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 28,
20222021
(In thousands)Mortgage servicing rightsLMF Commercial loans held-for-saleMortgage servicing rightsLMF Commercial loans held-for-sale
Beginning balance$2,492 68 2,113 193,588 
Purchases/loan originations82 264,845 424 219,500 
Sales/loan originations sold, including those not settled— (178,082)— (282,965)
Disposals/settlements(159)— (1,038)— 
Changes in fair value (1)378 (590)— (6,767)
Interest and principal paydowns— (446)— (208)
Ending balance$2,793 85,795 1,499 123,148 
(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 28,
20222021
(In thousands)Fair Value
Hierarchy
Carrying ValueFair ValueTotal Losses, Net (1)Carrying ValueFair ValueTotal Losses, Net (1)
Non-financial assets - Homebuilding:
Finished homes and construction in progressLevel 3$15,358 13,841 (1,517)442 — (442)
Land and land under developmentLevel 320,752 10,760 (9,992)2,543 2,350 (193)
(1)Valuation adjustments were included in Homebuilding costs and expenses in the Company's condensed consolidated statements of operations and comprehensive income.
The table below summarizes communities reviewed for indicators of impairment and communities with valuation adjustments recorded:
Communities with valuation adjustments
At or for the Three Months Ended# of active communities# of communities with potential indicator of impairment# of communities
Fair Value
(in thousands)
Valuation Adjustments
(in thousands)
February 28, 20221,1995$— $— 
February 28, 20211,15810— —