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Financial Instruments and Fair Value Disclosure (Tables) | 12 Months Ended
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Nov. 30, 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 by the Company at November 30, 2021 and 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.
|  |  | November 30,
|  |  | 2021 |  | 2020
| Fair Value |  | Carrying |  | Fair |  | Carrying |  | Fair
(In thousands) | Hierarchy |  | Amount |  | Value |  | Amount |  | Value
ASSETS |  |  |  |  |  |  |  |  |
Financial Services: |  |  |  |  |  |  |  |  |
Loans held-for-investment, net | Level 3 |  | $ | 44,582 |  |  | 44,594 |  |  | 72,626 |  |  | 70,808 |
Investments held-to-maturity | Level 3 |  | 157,808 |  |  | 184,495 |  |  | 164,230 |  |  | 196,047 |
LIABILITIES |  |  |  |  |  |  |  |  |
Homebuilding senior notes and other debts payable, net | Level 2 |  | $ | 4,652,338 |  |  | 5,046,721 |  |  | 5,955,758 |  |  | 6,581,798 |
Financial Services notes and other debts payable, net | Level 2 |  | 1,726,026 |  |  | 1,726,860 |  |  | 1,463,919 |  |  | 1,464,850 |
Lennar Other notes and other debts payable, net | Level 2 |  | — |  |  | — |  |  | 1,906 |  |  | 1,906 |
Fair Value Measured on a Recurring Basis | The Company’s financial instruments measured at fair value on a recurring basis are summarized below:
|  |  | Fair Value at November 30,
(In thousands) | Fair Value Hierarchy |  | 2021 |  | 2020
Financial Services Assets: |  |  |  |  |
Residential loans held-for-sale | Level 2 |  | $ | 1,636,283 |  |  | 1,296,517 |
LMF Commercial loans held-for-sale | Level 3 |  | 68 |  |  | 193,588 |
Mortgage servicing rights | Level 3 |  | 2,492 |  |  | 2,113 |
Lennar Other: |  |  |  |  |
Investments in equity securities | Level 1 |  | 906,539 |  |  | — |
Investments available-for-sale | Level 3 |  | 41,654 |  |  | 53,497 |
Residential and LMF Commercial loans held-for-sale in the table above include:
| November 30,
| 2021 |  | 2020
(In thousands) | Aggregate Principal Balance |  |  |  | Change in Fair Value |  | Aggregate Principal Balance |  |  |  | Change in Fair Value
Residential loans held-for-sale | $ | 1,586,764 |  |  |  |  | 49,519 |  |  | 1,232,548 |  |  |  |  | 63,969 |
LMF Commercial loans held-for-sale | — |  |  |  |  | 68 |  |  | 194,362 |  |  |  |  | (774) |
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:
| Years Ended November 30,
| 2021 |  | 2020
(In thousands) | Mortgage servicing rights |  |  |  | LMF Commercial loans held-for-sale |  | Mortgage servicing rights |  |  |  | LMF Commercial loans held-for-sale
Beginning of year | $ | 2,113 |  |  |  |  | 193,588 |  |  | 24,679 |  |  |  |  | 197,224 |
Purchases/loan originations | 584 |  |  |  |  | 774,905 |  |  | 2,378 |  |  |  |  | 703,777 |
Sales/loan originations sold, including those not settled | — |  |  |  |  | (931,023) |  |  | — |  |  |  |  | (705,089) |
Disposals/settlements (1) | (1,365) |  |  |  |  | (35,837) |  |  | (10,322) |  |  |  |  | — |
Changes in fair value (2) | 1,160 |  |  |  |  | (388) |  |  | (14,622) |  |  |  |  | (25) |
Interest and principal paydowns | — |  |  |  |  | (1,177) |  |  | — |  |  |  |  | (2,299) |
End of year | $ | 2,492 |  |  |  |  | 68 |  |  | 2,113 |  |  |  |  | 193,588 |
(1)The year ended November 30, 2021 includes $28.5 million of loans sold/paid outside of LMF Commercial’s six securitizations and $7.3 million of loans converted to loans held-for-investment. The year ended November 30, 2020 includes $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.
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:
| Years Ended November 30,
(In thousands) | 2021 |  | 2020 |  | 2019
Changes in fair value included in Financial Services revenues: |  |  |  |  |
Loans held-for-sale | $ | (14,449) |  |  | 21,765 |  |  | 4,891 |
Mortgage loan commitments | (8,302) |  |  | 12,774 |  |  | (85) |
Forward contracts | 11,513 |  |  | (9,805) |  |  | 6,504 |
Changes in fair value included in Lennar Other realized and unrealized gains: |  |  |  |  |
Investments in equity securities | $ | 510,802 |  |  | — |  |  | — |
Changes in fair value included in other comprehensive income (loss), net of tax: |  |  |  |  |
Lennar Other investments available-for-sale | $ | (536) |  |  | (805) |  |  | — |
Financial Services investments available-for-sale | — |  |  | (46) |  |  | 1,040 |
Schedule of Significant Unobservable Inputs Used to Determine 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 years ended November 30, 2021 and 2020:
| Years Ended November 30,
| 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%
| November 30, 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
| November 30, 2021
Unobservable inputs |
Mortgage prepayment rate | 13 | %
Discount rate | 13 | %
Delinquency rate | 4 | %
Communities Reviewed for Indicators of Impairment and Communities with Valuation Adjustments Needed | The table below summarizes communities reviewed for indicators of impairment and communities with valuation adjustments recorded:
| At November 30, |  | Communities with valuation adjustments for the years ended November 30, |  |  |
| # of communities with potential indicator of impairment |  | # of communities |  | Fair Value (in thousands) |  | Valuation Adjustments (in thousands) |  |  |
2021 | 4 |  | 1 |  |  | $ | 5,267 |  |  | $ | 11,849 |  |  |  |
2020 | 10 |  | 16 |  |  | 79,734 |  |  | 44,811 |  |  |  |
The assets measured at fair value on a nonrecurring basis are summarized below:
| Years Ended November 30,
|  |  | 2021 |  | 2020 |  | 2019
(In thousands) | Fair Value Hierarchy |  | Carrying Value |  | Fair Value |  | Total Losses, Net (1) |  | 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 (2) | Level 3 |  | $ | 32,364 |  |  | 16,342 |  |  | (16,022) |  |  | 176,637 |  |  | 148,684 |  |  | (27,953) |  |  | 218,942 |  |  | 205,201 |  |  | (13,741) |
Land and land under development (2) | Level 3 |  | 35,775 |  |  | 26,841 |  |  | (8,934) |  |  | 182,137 |  |  | 92,355 |  |  | (89,782) |  |  | 121,564 |  |  | 82,816 |  |  | (38,748) |
Other assets (2) | Level 3 |  | 12,764 |  |  | 12,024 |  |  | (740) |  |  | — |  |  | — |  |  | — |  |  | 60,363 |  |  | 56,727 |  |  | (3,636) |
(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 year. (2)Valuation adjustments for finished homes, construction in progress and land and land under development were included in Homebuilding costs and expenses and valuation adjustments for other assets were included in homebuilding other income (expense), net in the Company's consolidated statements of operations for the years ended November 30, 2021, 2020 and 2019.

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- Definition Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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