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Financial Instruments and Fair Value Disclosures (Tables)

6 Months Ended

May 31, 2021

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 May 31, 2021 and November 30, 2020, 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, 2021												November 30, 2020
(In thousands)			Fair Value Hierarchy						Carrying Amount						Fair Value						Carrying Amount						Fair Value
ASSETS
Financial Services:
Loans held-for-investment, net			Level 3						$	77,680					77,780						72,626						70,808
Investments held-to-maturity			Level 3						162,919						193,781						164,230						196,047
LIABILITIES
Homebuilding senior notes and other debts payable, net			Level 2						$	5,894,342					6,414,267						5,955,758						6,581,798
Financial Services notes and other debts payable, net			Level 2						928,185						929,051						1,463,919						1,464,850
Lennar Other notes and other debts payable, net			Level 2						1,906						1,906						1,906						1,906

Fair Value Measured On Recurring Basis

The Company’s financial instruments measured at fair value on a recurring basis are summarized below:

			Fair Value Hierarchy						Fair Value at
(In thousands)									May 31, 2021						November 30, 2020
Financial Services Assets:
Residential loans held-for-sale			Level 2						$	851,518					1,296,517
LMF Commercial loans held-for-sale			Level 3						163,920						193,588
Mortgage servicing rights			Level 3						2,602						2,113
Lennar Other:
Investments in equity securities			Level 1						$	461,238					—
Investments available-for-sale			Level 3						41,563						53,497

Residential and LMF Commercial loans held-for-sale in the table above include:

			May 31, 2021												November 30, 2020
(In thousands)			Aggregate Principal Balance												Change in Fair Value						Aggregate Principal Balance												Change in Fair Value
Residential loans held-for-sale			$	817,901											33,617						1,232,548												63,969
LMF Commercial loans held-for-sale			167,948												(4,028)						194,362												(774)

Schedule of Unobservable Inputs Used in Discounted Cash Flow Model to Determine the Fair Value of Communities

			May 31, 2021
Discount rates at purchase			6%			—			84%
Coupon rates			2.0%			—			5.3%
Distribution dates			October 2027			—			December 2028
Stated maturity dates			October 2050			—			December 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 inputs			As of May 31, 2021						As of November 30, 2020
Mortgage prepayment rate			13%						18%
Discount rate			14%						12%
Delinquency rate			3%						4%

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:

			Six Months Ended
			May 31,
			2021						2020
Unobservable inputs									Range
Average selling price			$635,000												201,000			-			970,000
Absorption rate per quarter (homes)			11												3			-			15
Discount rate			20%						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												Six Months Ended
			May 31,												May 31,
(In thousands)			2021						2020						2021						2020
Changes in fair value included in Financial Services revenues:
Loans held-for-sale			$	4,669					5,270						(30,352)						(2,223)
Mortgage loan commitments			5,057						13,816						142						28,711
Forward contracts			(23,953)						8,478						10,285						(883)
Changes in fair value included in Lennar Other realized and unrealized gain (loss):
Investments in equity securities			$	(272,625)					—						197,120						—
Changes in fair value included in other comprehensive loss, net of tax:
Lennar Other investments available-for-sale			$	316					(338)						(626)						(384)

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
			May 31, 2021												May 31, 2020
(In thousands)			Mortgage servicing rights						LMF Commercial loans held-for-sale						Mortgage servicing rights						LMF Commercial loans held-for-sale
Beginning balance			$	1,499					123,148						12,576						300,402
Purchases/loan originations			20						201,296						607						5,400
Sales/loan originations sold, including those not settled			—						(155,740)						—						(143,285)
Disposals/settlements (1)			(58)						(7,300)						(8,908)						—
Changes in fair value (2)			1,141						2,825						(3,037)						(2,334)
Interest and principal paydowns			—						(309)						—						(298)
Ending balance			$	2,602					163,920						1,238						159,885

			Six Months Ended
			May 31, 2021												May 31, 2020
(In thousands)			Mortgage servicing rights						LMF Commercial loans held-for-sale						Mortgage servicing rights						LMF Commercial loans held-for-sale
Beginning balance			$	2,113					193,588						24,679						197,224
Purchases/loan originations			443						420,796						1,354						417,650
Sales/loan originations sold, including those not settled			—						(438,705)						—						(457,724)
Disposals/settlements (1)			(1,095)						(7,300)						(10,197)						—
Changes in fair value (2)			1,141						(3,942)						(14,598)						3,267
Interest and principal paydowns			—						(517)						—						(532)
Ending balance			$	2,602					163,920						1,238						159,885

(1)The three and six months ended May 31, 2020 include $7.5 million related to the sale of a servicing portfolio.

(2)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
									May 31, 2021																		May 31, 2020
(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						$	19,240					6,378						(12,862)						68,802						61,119						(7,683)
Land and land under development (1)			Level 3						78						—						(78)						42,609						9,709						(32,900)

									Six Months Ended
									May 31, 2021																		May 31, 2020
(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						$	21,784					8,728						(13,056)						141,809						120,404						(21,405)
Land and land under development (1)			Level 3						520						—						(520)						65,062						21,369						(43,693)

(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 active communities						# of communities with potential indicator of impairment																		# of communities																		Fair Value (in thousands)						Valuation Adjustments (in thousands)
At or for the Six Months Ended
May 31, 2021			1,221						10																		1																		$	17,117					$	11,849
May 31, 2020			1,241						41																		9																		69,137						32,072

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