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Financial Instruments and Fair Value Disclosure (Tables)

12 Months Ended

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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