AMERICAN TOWER CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) market and lease the unused tower space on the broadcast towers (the Economic Rights).
TV Azteca retains title to these towers and is responsible for their operation and maintenance.
The Company is entitled to 100% of the revenues generated from leases with tenants on the unused space and is responsible for any incremental operating expenses associated with those tenants.
The term of the Economic Rights Agreement is seventy years; however, TV Azteca has the right to purchase, at fair market value, the Economic Rights from the Company at any time during the last fifty years of the agreement.
Should TV Azteca elect to purchase the Economic Rights (in whole or in part), it would also be obligated to repay a proportional amount of the loan discussed above at the time of such election.
The Company’s obligation to pay TV Azteca $1.5 million annually would also be reduced proportionally.
The Company has accounted for the annual payment of $1.5 million as a capital lease (initially recording an asset and a corresponding liability of approximately $18.6 million).
The capital lease asset and the discount on the note, which aggregate approximately $30.2 million, represent the cost to acquire the Economic Rights and are being amortized over the seventy-year life of the Economic Rights agreement.
On a quarterly basis, the Company assesses the recoverability of its note receivable from TV Azteca.
As of December 31, 2007 and 2006, the Company has assessed the recoverability of the note receivable from TV Azteca and concluded that no adjustment to its carrying value is required.
A former executive officer and former director of the Company served as a director of TV Azteca from December 1999 to February 2006.
As of December 31, 2007 and 2006, the Company also had other long-term notes receivable outstanding of approximately $4.3 million and $11.0 million, respectively.8.
DERIVATIVE FINANCIAL INSTRUMENTS The Company enters into interest rate protection agreements to manage exposure on the variable rate debt under its credit facilities and to manage variability in cash flows relating to forecasted interest payments.
Under these agreements, the Company is exposed to credit risk to the extent that a counterparty fails to meet the terms of a contract.
Such exposure was limited to the current value of the contract at the time the counterparty fails to perform.
The Company believes its contracts as of December 31, 2007 and 2006 are with credit worthy institutions.
As of December 31, 2007 and 2006, the carrying amounts of the Company’s derivative financial instruments, along with the estimated fair values of the related assets reflected in notes receivable and other long-term assets and (liabilities) reflected in other long-term liabilities in the accompanying consolidated balance sheet, are as follows (in thousands except percentages):
## Table 0 ##
LENNAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) 133 The Company’s assets measured at fair value on a nonrecurring basis are those assets for which the Company has recorded valuation adjustments and write-offs and Rialto real estate owned assets.
The fair value included in the tables below represent only those assets whose carrying value were adjusted to fair value during the respective years disclosed.
The assets measured at fair value on a nonrecurring basis are summarized below: Non-financial assets
## Table 1 ##
(1) Represents total losses due to valuation adjustments or gains (losses) from acquisition of real estate through foreclosure recorded during the year ended November 30, 2013.
(2) Finished homes and construction in progress with an aggregate carrying value of $16.5 million were written down to their fair value of $12.0 million, resulting in valuation adjustments of $4.5 million, which were included in Lennar Homebuilding costs and expenses in the Company’s statement of operations for the year ended November 30, 2013.
(3) Lennar Homebuilding investments in unconsolidated entities with an aggregate carrying value of $20.9 million were written down to their fair value of $20.0 million, resulting in valuation adjustments of $0.9 million, which were included in other income, net in the Company's statement of operations for the year ended November 30, 2013.
(4) REO held-for-sale, assets are initially recorded at fair value less estimated costs to sell at the time of acquisition through, or in lieu of, loan foreclosure.
Upon acquisition, the REO held-for-sale, had a carrying value of $14.4 million and a fair value of $16.0 million.
The fair value of REO held-for-sale, is based upon the appraised value at the time of foreclosure or management’s best estimate.
The gains upon acquisition of REO held-for-sale, were $1.6 million.
As part of management’s periodic valuations of its REO held-for-sale, during the year ended November 30, 2013, REO held-for-sale, with an aggregate value of $26.8 million were written down to their fair value of $21.2 million, resulting in impairments of $5.6 million.
These gains and impairments are included within Rialto other income (expense), net, in the Company’s statement of operations for the year ended November 30, 2013.
(5) REO held-and-used, net, assets are initially recorded at fair value at the time of acquisition through, or in lieu of, loan foreclosure.
Upon acquisition, the REO held-and-used, net, had a carrying value of $79.8 million and a fair value of $86.3 million.
The fair value of REO held-and-used, net, is based upon the appraised value at the time of foreclosure or management’s best estimate.
The gains upon acquisition of REO held-and-used, net, were $6.5 million.
As part of management’s periodic valuations of its REO held-and-used, net, during the year ended November 30, 2013, REO held-and-used, net, with an aggregate value of $22.7 million were written down to their fair value of $12.2 million, resulting in impairments of $10.5 million.
These gains and impairments are included within Rialto other income (expense), net, in the Company’s statement of operations for the year ended November 30, 2013.
Non-financial assets
## Table 2 ##
(1) Represents total losses due to valuation adjustments or gains (losses) from acquisition of real estate through foreclosure recorded during the year ended November 30, 2012.
(2) Finished homes and construction in progress with an aggregate carrying value of $25.8 million were written down to their fair value of $14.8 million, resulting in valuation adjustments of $11.0 million, which were included in Lennar Homebuilding costs and expenses in the Company’s statement of operations for the year ended November 30, 2012.
(3) Land under development with an aggregate carrying value of $18.0 million were written down to their fair value of $16.2 million, resulting in valuation adjustments of $1.9 million, which were included in Lennar Homebuilding costs and expenses in the Company’s statement of operations for the year ended November 30, 2012.
(4) REO held-for-sale, assets are initially recorded at fair value less estimated cost to sell at the time of acquisition through, or in lieu of, loan foreclosure.
Upon acquisition, the REO held-for-sale, had a carrying value of $14.3 million and a fair value of $10.0 million.
The fair value of REO held-for-sale, is based upon the appraised value at the time of foreclosure or management's best
The following table details our gross margins on home sales for the years ended November 30, 2013, 2012 and 2011 for each of our reportable homebuilding segments and Homebuilding Other:
## Table 3 ##
2013 versus 2012 East: Homebuilding revenues increased in 2013, compared to 2012, primarily due to an increase in the number of home deliveries and average sales price in all of the states in the segment.
The increase in the number of deliveries was primarily driven by an increase in our backlog demand as demand continues to outpace supply, which is constrained by limited land availability and fewer competing homebuilders.
The increase in the average sales price of homes delivered was primarily because we have been able to increase the sales price of homes delivered and/or reduce sales incentives in certain of our communities as the market recovery continues.
Gross margins on home sales were $475.5 million, or 26.0%, in 2013, compared to gross margins on home sales of $304.2 million, or 23.7%, in 2012.
Gross margin percentage on homes increased compared to last year primarily due to a greater percentage of deliveries from our new higher margin communities, a decrease in sales incentives offered to homebuyers as a percentage of revenues from home sales (8.2% in 2013, compared to 11.7% in 2012) and lower valuation adjustments, partially offset by a 9% increase in direct construction and land costs per home due to an increase in labor, materials and land costs.
Central: Homebuilding revenues increased in 2013, compared to 2012, primarily due to an increase in the number of home deliveries and average sales price of homes delivered in all states in the segment.
The increase in the number of deliveries was primarily driven by an increase in our backlog demand as demand continues to outpace supply, which is constrained by limited land availability and fewer competing homebuilders.
The increase in the average sales price of homes delivered was primarily because we have been able to increase the sales price of homes delivered and/or reduce sales incentives in certain of our communities as the market recovery continues.
Gross margins on home sales were $144.9 million, or 19.7%, in 2013, compared to gross margins on home sales of $96.5 million, or 19.8%, in 2012.
Gross margin percentage on homes decreased slightly compared to last year primarily due to a 15% increase in direct construction and land costs per home due to increases in labor, material and land costs, partially offset by a greater percentage of deliveries from our new higher margin communities and a decrease in sales incentives offered to homebuyers as a percentage of revenues from home sales (6.5% in 2013, compared to 9.1% in 2012).

<table><tr><td>As of December 31, 2007</td><td>Notional Amount</td><td>Interest Rate</td><td>Term</td><td>Carrying Amount and Fair Value</td></tr><tr><td>Interest rate swap agreement</td><td>$150,000</td><td>3.95%</td><td>Expiring in 2009</td><td>$-369</td></tr><tr><td>Interest rate swap agreement</td><td>100,000</td><td>4.08%</td><td>Expiring in 2010</td><td>-571</td></tr><tr><td>Total</td><td>$250,000</td><td></td><td></td><td>$-940</td></tr></table>
<table><tr><td>(In thousands)</td><td>FairValueHierarchy</td><td>Fair Value Year Ended November 30, 2013</td><td>Total Gains(Losses) (1)</td></tr><tr><td>Lennar Homebuilding:</td><td></td><td></td><td></td></tr><tr><td>Finished homes and construction in progress -2</td><td>Level 3</td><td>$11,995</td><td>-4,458</td></tr><tr><td>Investment in unconsolidated entities -3</td><td>Level 3</td><td>$20,024</td><td>-897</td></tr><tr><td>Rialto Investments:</td><td></td><td></td><td></td></tr><tr><td>REO - held-for-sale -4</td><td>Level 3</td><td>$37,185</td><td>-3,955</td></tr><tr><td>REO - held-and-used, net -5</td><td>Level 3</td><td>$98,488</td><td>-4,030</td></tr></table>
<table><tr><td>(In thousands)</td><td>FairValueHierarchy</td><td>Fair Value Year Ended November 30, 2012</td><td>Total Gains(Losses) (1)</td></tr><tr><td>Lennar Homebuilding:</td><td></td><td></td><td></td></tr><tr><td>Finished homes and construction in progress -2</td><td>Level 3</td><td>$14,755</td><td>-11,029</td></tr><tr><td>Land and land under development -3</td><td>Level 3</td><td>$16,166</td><td>-1,878</td></tr><tr><td>Rialto Investments:</td><td></td><td></td><td></td></tr><tr><td>REO - held-for-sale -4</td><td>Level 3</td><td>$27,126</td><td>-6,917</td></tr><tr><td>REO - held-and-used, net -5</td><td>Level 3</td><td>$201,414</td><td>-4,243</td></tr></table>
<table><tr><td></td><td colspan="5">Years Ended November 30,</td><td></td></tr><tr><td>(In thousands)</td><td>2013</td><td></td><td>2012</td><td></td><td>2011</td><td></td></tr><tr><td>East:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Sales of homes</td><td>$1,828,543</td><td></td><td>1,283,441</td><td></td><td>1,009,750</td><td></td></tr><tr><td>Cost of homes sold</td><td>1,353,048</td><td></td><td>979,219</td><td></td><td>779,538</td><td></td></tr><tr><td>Gross margins on home sales</td><td>475,495</td><td>26.0%</td><td>304,222</td><td>23.7%</td><td>230,212</td><td>22.8%</td></tr><tr><td>Central:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Sales of homes</td><td>736,557</td><td></td><td>487,317</td><td></td><td>355,350</td><td></td></tr><tr><td>Cost of homes sold</td><td>591,611</td><td></td><td>390,823</td><td></td><td>313,311</td><td></td></tr><tr><td>Gross margins on home sales</td><td>144,946</td><td>19.7%</td><td>96,494</td><td>19.8%</td><td>42,039</td><td>11.8%</td></tr><tr><td>West:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Sales of homes</td><td>1,160,842</td><td></td><td>683,267</td><td></td><td>531,984</td><td></td></tr><tr><td>Cost of homes sold</td><td>840,619</td><td></td><td>540,982</td><td></td><td>426,922</td><td></td></tr><tr><td>Gross margins on home sales</td><td>320,223</td><td>27.6%</td><td>142,285</td><td>20.8%</td><td>105,062</td><td>19.7%</td></tr><tr><td>Southeast Florida:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Sales of homes</td><td>502,175</td><td></td><td>353,841</td><td></td><td>239,608</td><td></td></tr><tr><td>Cost of homes sold</td><td>352,684</td><td></td><td>256,672</td><td></td><td>182,155</td><td></td></tr><tr><td>Gross margins on home sales</td><td>149,491</td><td>29.8%</td><td>97,169</td><td>27.5%</td><td>57,453</td><td>24.0%</td></tr><tr><td>Houston:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Sales of homes</td><td>604,212</td><td></td><td>449,580</td><td></td><td>321,908</td><td></td></tr><tr><td>Cost of homes sold</td><td>464,612</td><td></td><td>354,981</td><td></td><td>263,037</td><td></td></tr><tr><td>Gross margins on home sales</td><td>139,600</td><td>23.1%</td><td>94,599</td><td>21.0%</td><td>58,871</td><td>18.3%</td></tr><tr><td>Other</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Sales of homes</td><td>459,743</td><td></td><td>234,731</td><td></td><td>166,185</td><td></td></tr><tr><td>Cost of homes sold</td><td>371,238</td><td></td><td>176,154</td><td></td><td>136,451</td><td></td></tr><tr><td>Gross margins on home sales</td><td>88,505</td><td>19.3%</td><td>58,577</td><td>25.0%</td><td>29,734</td><td>17.9%</td></tr><tr><td>Total gross margins on home sales</td><td>$1,318,260</td><td>24.9%</td><td>793,346</td><td>22.7%</td><td>523,371</td><td>19.9%</td></tr></table>

Question: Which year is Total gross margins on home sales the most,in terms of Years Ended November 30?
Answer: 2013