Supplemental Financial Information

The indentures governing the Company’s 6.50% senior notes due 2016, 12.25% senior notes due 2017, 4.75% senior notes due 2017, 6.95% senior notes due 2018, 4.125% senior notes due 2018, 4.500% senior notes due 2019, 4.50% senior notes due 2019, 2.75% convertible senior notes due 2020, 3.25% convertible senior notes due 2021, 4.750% senior notes due 2022, 4.875% senior notes due 2023 and 4.750% senior notes due 2025 require that, if any of the Company’s 100% owned subsidiaries, other than its finance company subsidiaries and foreign subsidiaries, directly or indirectly guarantee at least $75 million principal amount of debt of Lennar Corporation, those subsidiaries must also guarantee Lennar Corporation’s obligations with regard to its senior notes. The entities referred to as “guarantors” in the following tables are subsidiaries that are not finance company subsidiaries or foreign subsidiaries and were guaranteeing the senior notes because at November 30, 2015 they were guaranteeing Lennar Corporation's letter of credit facilities and its Credit Facility, disclosed in Note 6. The guarantees are full, unconditional and joint and several and the guarantor subsidiaries are 100% directly or indirectly owned by Lennar Corporation. A subsidiary's guarantee will be suspended at any time when it is not directly or indirectly guaranteeing at least $75 million principal amount of debt of Lennar Corporation, and a subsidiary will be released from its guarantee and any other obligations it may have regarding the senior notes if all or substantially all its assets, or all of its capital stock, are sold or otherwise disposed of.

For purposes of the condensed consolidating statement of cash flows included in the following supplemental financial information, the Company's accounting policy is to treat cash received by Lennar Corporation ("the Parent") from its subsidiaries, to the extent of net earnings from such subsidiaries as a dividend and accordingly a return on investment within cash flows from operating activities. Distributions of capital received by the Parent from its subsidiaries are reflected as cash flows from investing activities. The cash outflows associated with the return on investment dividends and distributions of capital received by the Parent are reflected by the Guarantor and Non-Guarantor subsidiaries in the Dividends line item within cash flows from financing activities. All other cash flows between the Parent and its subsidiaries represent the settlement of receivables and payables between such entities in conjunction with the Parent's centralized cash management arrangement with its subsidiaries, which operates with the characteristics of a revolving credit facility, and are accordingly reflected net in the Intercompany line item within cash flows from investing activities for the Parent and net in the Intercompany line item within cash flows from financing activities for the Guarantor and Non-Guarantor subsidiaries.

Supplemental information for the subsidiaries that were guarantor subsidiaries at November 30, 2015 was as follows:

Consolidating Balance Sheet November 30, 2015

(In thousands)	Lennar Corporation		Guarantor Subsidiaries	Non-Guarantor Subsidiaries	Consolidating Adjustments		Total
ASSETS
Lennar Homebuilding:
Cash and cash equivalents, restricted cash and receivables, net	$	595,921	372,146	13,384	—		981,451
Inventories	—		8,571,769	168,827	—		8,740,596
Investments in unconsolidated entities	—		692,879	48,672	—		741,551
Other assets	193,360		324,050	75,108	16,704		609,222
Investments in subsidiaries	3,958,687		176,660	—	(4,135,347	)	—
Intercompany	6,227,193		—	—	(6,227,193	)	—
	10,975,161		10,137,504	305,991	(10,345,836	)	11,072,820
Rialto	—		—	1,505,500	—		1,505,500
Lennar Financial Services	—		89,532	1,341,565	(5,260	)	1,425,837
Lennar Multifamily	—		—	426,796	(11,444	)	415,352
Total assets	$	10,975,161	10,227,036	3,579,852	(10,362,540	)	14,419,509
LIABILITIES AND EQUITY
Lennar Homebuilding:
Accounts payable and other liabilities	$	579,468	710,460	85,796	—		1,375,724
Liabilities related to consolidated inventory not owned	—		51,431	—	—		51,431
Senior notes and other debts payable	4,746,749		267,531	10,850	—		5,025,130
Intercompany	—		5,514,610	712,583	(6,227,193	)	—
	5,326,217		6,544,032	809,229	(6,227,193	)	6,452,285
Rialto	—		—	866,224	—		866,224
Lennar Financial Services	—		36,229	1,047,749	—		1,083,978
Lennar Multifamily	—		—	66,950	—		66,950
Total liabilities	$	5,326,217	6,580,261	2,790,152	(6,227,193	)	8,469,437
Stockholders’ equity	5,648,944		3,646,775	488,572	(4,135,347	)	5,648,944
Noncontrolling interests	—		—	301,128	—		301,128
Total equity	5,648,944		3,646,775	789,700	(4,135,347	)	5,950,072
Total liabilities and equity	$	10,975,161	10,227,036	3,579,852	(10,362,540	)	14,419,509

Consolidating Balance Sheet November 30, 2014

(In thousands)	Lennar Corporation		Guarantor Subsidiaries	Non-Guarantor Subsidiaries	Consolidating Adjustments		Total
ASSETS
Lennar Homebuilding:
Cash and cash equivalents, restricted cash and receivables, net	$	653,491	321,765	13,766	—		989,022
Inventories	—		7,517,261	219,339	—		7,736,600
Investments in unconsolidated entities	—		622,663	34,174	—		656,837
Other assets	130,617		385,143	120,591	7,291		643,642
Investments in subsidiaries	4,073,687		299,432	—	(4,373,119	)	—
Intercompany	4,709,544		—	—	(4,709,544	)	—
	9,567,339		9,146,264	387,870	(9,075,372	)	10,026,101
Rialto	—		—	1,451,983	—		1,451,983
Lennar Financial Services	—		76,428	1,100,625	—		1,177,053
Lennar Multifamily	—		—	268,975	(961	)	268,014
Total assets	$	9,567,339	9,222,692	3,209,453	(9,076,333	)	12,923,151
LIABILITIES AND EQUITY
Lennar Homebuilding:
Accounts payable and other liabilities	$	447,104	748,991	79,699	—		1,275,794
Liabilities related to consolidated inventory not owned	—		45,028	—	—		45,028
Senior notes and other debts payable	4,293,215		287,700	80,351	—		4,661,266
Intercompany	—		4,350,505	359,039	(4,709,544	)	—
	4,740,319		5,432,224	519,089	(4,709,544	)	5,982,088
Rialto	—		—	740,875	—		740,875
Lennar Financial Services	—		28,705	861,608	6,330		896,643
Lennar Multifamily	—		—	52,243	—		52,243
Total liabilities	$	4,740,319	5,460,929	2,173,815	(4,703,214	)	7,671,849
Stockholders’ equity	4,827,020		3,761,763	611,356	(4,373,119	)	4,827,020
Noncontrolling interests	—		—	424,282	—		424,282
Total equity	4,827,020		3,761,763	1,035,638	(4,373,119	)	5,251,302
Total liabilities and equity	$	9,567,339	9,222,692	3,209,453	(9,076,333	)	12,923,151

Consolidating Statement of Operations and Comprehensive Income (Loss) Year Ended November 30, 2015

(In thousands)	Lennar Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments		Total
Revenues:
Lennar Homebuilding	$	—		8,466,945		—		—		8,466,945
Lennar Financial Services	—			194,993		445,535		(20,001	)	620,527
Rialto	—			—		221,923		—		221,923
Lennar Multifamily	—			—		164,639		(26	)	164,613
Total revenues	—			8,661,938		832,097		(20,027	)	9,474,008
Cost and expenses:
Lennar Homebuilding	—			7,231,495		49,327		(15,983	)	7,264,839
Lennar Financial Services	—			181,805		316,003		(5,076	)	492,732
Rialto	—			—		223,933		(1,058	)	222,875
Lennar Multifamily	—			—		191,302		—		191,302
Corporate general and administrative	210,377			806		—		5,061		216,244
Total costs and expenses	210,377			7,414,106		780,565		(17,056	)	8,387,992
Lennar Homebuilding equity in earnings from unconsolidated entities	—			49,134		14,239		—		63,373
Lennar Homebuilding other income (expense), net	(1,124		)	4,903		17,660		(2,823	)	18,616
Other interest expense	(5,794		)	(12,454	)	—		5,794		(12,454	)
Rialto equity in earnings from unconsolidated entities	—			—		22,293		—		22,293
Rialto other income, net	—			—		12,254		—		12,254
Lennar Multifamily equity in earnings from unconsolidated entities	—			—		19,518		—		19,518
Earnings (loss) before income taxes	(217,295		)	1,289,415		137,496		—		1,209,616
Benefit (provision) for income taxes	71,099			(412,301	)	(49,214	)	—		(390,416	)
Equity in earnings from subsidiaries	949,090			51,956		—		(1,001,046	)	—
Net earnings (including net earnings attributable to noncontrolling interests)	802,894			929,070		88,282		(1,001,046	)	819,200
Less: Net earnings attributable to noncontrolling interests	—			—		16,306		—		16,306
Net earnings attributable to Lennar	$	802,894		929,070		71,976		(1,001,046	)	802,894
Other comprehensive loss, net of tax:
Net unrealized loss on securities available-for-sale	$	—		—		(65	)	—		(65	)
Reclassification adjustments for gains included in net earnings, net of tax	—			—		(26	)	—		(26	)
Other comprehensive income attributable to Lennar	$	802,894		929,070		71,885		(1,001,046	)	802,803
Other comprehensive income attributable to noncontrolling interests	$	—		—		16,306		—		16,306

Consolidating Statement of Operations and Comprehensive Income (Loss) Year Ended November 30, 2014

(In thousands)	Lennar Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments		Total
Revenues:
Lennar Homebuilding	$	—		7,023,678		1,452		—		7,025,130
Lennar Financial Services	—			161,145		315,123		(21,887	)	454,381
Rialto	—			—		230,521		—		230,521
Lennar Multifamily	—			—		69,780		—		69,780
Total revenues	—			7,184,823		616,876		(21,887	)	7,779,812
Cost and expenses:
Lennar Homebuilding	—			5,961,062		9,444		(8,477	)	5,962,029
Lennar Financial Services	—			153,975		233,162		(12,894	)	374,243
Rialto	—			—		249,114		—		249,114
Lennar Multifamily	—			—		95,227		—		95,227
Corporate general and administrative	172,099			—		—		5,062		177,161
Total costs and expenses	172,099			6,115,037		586,947		(16,309	)	6,857,774
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities	—			(4,140	)	3,785		—		(355	)
Lennar Homebuilding other income, net	254			4,726		2,762		(216	)	7,526
Other interest expense	(5,794		)	(36,551	)	—		5,794		(36,551	)
Rialto equity in earnings from unconsolidated entities	—			—		59,277		—		59,277
Rialto other income, net	—			—		3,395		—		3,395
Lennar Multifamily equity in earnings from unconsolidated entities	—			—		14,454		—		14,454
Earnings (loss) before income taxes	(177,639		)	1,033,821		113,602		—		969,784
Benefit (provision) for income taxes	61,818			(357,277	)	(45,632	)	—		(341,091	)
Equity in earnings from subsidiaries	754,737			39,691		—		(794,428	)	—
Net earnings (including net loss attributable to noncontrolling interests)	638,916			716,235		67,970		(794,428	)	628,693
Less: Net loss attributable to noncontrolling interests	—			—		(10,223	)	—		(10,223	)
Net earnings attributable to Lennar	$	638,916		716,235		78,193		(794,428	)	638,916
Other comprehensive earnings, net of tax:
Net unrealized loss on securities available-for-sale	$	—		—		130		—		130
Other comprehensive earnings attributable to Lennar	$	638,916		716,235		78,323		(794,428	)	639,046
Other comprehensive loss attributable to noncontrolling interests	$	—		—		(10,223	)	—		(10,223	)

Consolidating Statement of Operations and Comprehensive Income (Loss) Year Ended November 30, 2013

(In thousands)	Lennar Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments		Total
Revenues:
Lennar Homebuilding	$	—		5,317,890		37,057		—		5,354,947
Lennar Financial Services	—			162,939		285,474		(21,071	)	427,342
Rialto	—			—		138,060		—		138,060
Lennar Multifamily	—			—		14,746		—		14,746
Total revenues	—			5,480,829		475,337		(21,071	)	5,935,095
Cost and expenses:
Lennar Homebuilding	—			4,546,670		25,129		7,309		4,579,108
Lennar Financial Services	—			157,351		212,380		(28,175	)	341,556
Rialto	—			—		151,072		—		151,072
Lennar Multifamily	—			—		31,463		—		31,463
Corporate general and administrative	140,999			—		—		5,061		146,060
Total costs and expenses	140,999			4,704,021		420,044		(15,805	)	5,249,259
Lennar Homebuilding equity in earnings from unconsolidated entities	—			22,966		837		—		23,803
Lennar Homebuilding other income (expense), net	542			27,446		(138	)	(504	)	27,346
Other interest expense	(5,770		)	(93,913	)	—		5,770		(93,913	)
Rialto equity in earnings from unconsolidated entities	—			—		22,353		—		22,353
Rialto other income, net	—			—		16,787		—		16,787
Lennar Multifamily equity in loss from unconsolidated entities	—			—		(271	)	—		(271	)
Earnings (loss) before income taxes	(146,227		)	733,307		94,861		—		681,941
Benefit (provision) for income taxes	54,353			(204,940	)	(26,428	)	—		(177,015	)
Equity in earnings from subsidiaries	571,548			44,980		—		(616,528	)	—
Net earnings (including net earnings attributable to noncontrolling interests)	479,674			573,347		68,433		(616,528	)	504,926
Less: Net earnings attributable to noncontrolling interests	—			—		25,252		—		25,252
Net earnings attributable to Lennar	$	479,674		573,347		43,181		(616,528	)	479,674
Comprehensive earnings attributable to Lennar	$	479,674		573,347		43,181		(616,528	)	479,674
Comprehensive earnings attributable to noncontrolling interests	$	—		—		25,252		—		25,252

Consolidating Statement of Cash Flows Year Ended November 30, 2015

(In thousands)	Lennar Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments		Total
Cash flows from operating activities:
Net earnings (including net earnings attributable to noncontrolling interests)	$	802,894		929,070		88,282		(1,001,046	)	819,200
Distributions of earnings from guarantor and non-guarantor subsidiaries	949,090			51,956		—		(1,001,046	)	—
Other adjustments to reconcile net earnings (including net earnings attributable to noncontrolling interests) to net cash provided by (used in) operating activities	(782,575		)	(861,284	)	(596,033	)	1,001,046		(1,238,846	)
Net cash provided by (used in) operating activities	969,409			119,742		(507,751	)	(1,001,046	)	(419,646	)
Cash flows from investing activities:
Investments in and contributions to unconsolidated entities, net of distributions of capital	—			(90,267	)	(5,674	)	—		(95,941	)
Proceeds from sales of real estate owned	—			—		155,295		—		155,295
Receipts of principal payments on loans receivable	—			—		28,389		—		28,389
Proceeds from sale of operating properties	—			73,732		—		—		73,732
Originations of loans receivable	—			—		(78,703	)	—		(78,703	)
Other	(5,988		)	(96,180	)	(78,997	)	—		(181,165	)
Distributions of capital from guarantor and non-guarantor subsidiaries	115,000			115,050		—		(230,050	)	—
Intercompany	(1,514,775		)	—		—		1,514,775		—
Net cash provided by (used in) investing activities	(1,405,763		)	2,335		20,310		1,284,725		(98,393	)
Cash flows from financing activities:
Net borrowings under warehouse facilities	—			—		366,290		—		366,290
Proceeds from senior notes and debt issuance costs	1,137,826			—		(2,986	)	—		1,134,840
Redemption of senior notes and conversion and exchanges of convertible senior notes	(712,107		)	—		—		—		(712,107	)
Principal repayments on Rialto notes payable including structured notes	—			—		(58,923	)	—		(58,923	)
Net repayments on other borrowings	—			(156,490	)	—		—		(156,490	)
Net payments related to noncontrolling interests	—			—		(132,078	)	—		(132,078	)
Excess tax benefits from share-based awards	113			—		—		—		113
Common stock:
Issuances	9,405			—		—		—		9,405
Repurchases	(23,188		)	—		—		—		(23,188	)
Dividends	(33,192		)	(1,044,070	)	(187,026	)	1,231,096		(33,192	)
Intercompany	—			1,161,617		353,158		(1,514,775	)	—
Net cash provided by (used in) financing activities	378,857			(38,943	)	338,435		(283,679	)	394,670
Net increase (decrease) in cash and cash equivalents	(57,497		)	83,134		(149,006	)	—		(123,369	)
Cash and cash equivalents at beginning of period	633,318			252,914		395,582		—		1,281,814
Cash and cash equivalents at end of period	$	575,821		336,048		246,576		—		1,158,445

Consolidating Statement of Cash Flows Year Ended November 30, 2014

(In thousands)	Lennar Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments		Total
Cash flows from operating activities:
Net earnings (including net loss attributable to noncontrolling interests)	$	638,916		716,235		67,970		(794,428	)	628,693
Distributions of earnings from guarantor and non-guarantor subsidiaries	754,737			39,691		—		(794,428	)	—
Other adjustments to reconcile net earnings (including net loss attributable to noncontrolling interests) to net cash provided by (used in) operating activities	(583,119		)	(1,108,430	)	(520,060	)	794,428		(1,417,181	)
Net cash provided by (used in) operating activities	810,534			(352,504	)	(452,090	)	(794,428	)	(788,488	)
Cash flows from investing activities:
Distributions of capital from unconsolidated entities, net of investments in and contributions to	—			63,990		55,533		—		119,523
Proceeds from sales of real estate owned	—			—		269,698		—		269,698
Receipts of principal payments on loans receivable, net	—			—		24,019		—		24,019
Proceeds from sale of operating properties	—			43,937		—		—		43,937
Other	(2,347		)	19,027		(35,498	)	—		(18,818	)
Distributions of capital from guarantor and non-guarantor subsidiaries	232,200			65,200		—		(297,400	)	—
Intercompany	(1,515,367		)	—		—		1,515,367		—
Net cash provided by (used in) investing activities	(1,285,514		)	192,154		313,752		1,217,967		438,359
Cash flows from financing activities:
Net borrowings under warehouse facilities	—			—		389,535		—		389,535
Net proceeds from senior notes and structured notes	843,300			—		196,180		—		1,039,480
Redemption of senior notes	(250,000		)	—		—		—		(250,000	)
Principal repayments on Rialto notes payable	—			—		(75,879	)	—		(75,879	)
Net repayments on other borrowings	—			(241,539	)	(23,750	)	—		(265,289	)
Exercise of land option contracts from an unconsolidated land investment venture	—			(1,540	)	—		—		(1,540	)
Net payments related to noncontrolling interests	—			—		(142,766	)	—		(142,766	)
Excess tax benefits from share-based awards	7,497			—		—		—		7,497
Common stock:
Issuances	13,599			—		—		—		13,599
Repurchases	(20,424		)	—		—		—		(20,424	)
Dividends	(32,775		)	(781,435	)	(310,393	)	1,091,828		(32,775	)
Intercompany	—			1,285,786		229,581		(1,515,367	)	—
Net cash provided by financing activities	561,197			261,272		262,508		(423,539	)	661,438
Net increase in cash and cash equivalents	86,217			100,922		124,170		—		311,309
Cash and cash equivalents at beginning of period	547,101			151,992		271,412		—		970,505
Cash and cash equivalents at end of period	$	633,318		252,914		395,582		—		1,281,814

Consolidating Statement of Cash Flows Year Ended November 30, 2013

(In thousands)	Lennar Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments		Total
Cash flows from operating activities:
Net earnings (including net earnings attributable to noncontrolling interests)	$	479,674		573,347		68,433		(616,528	)	504,926
Distributions of earnings from guarantor and non-guarantor subsidiaries	571,548			44,980		—		(616,528	)	—
Other adjustments to reconcile net earnings (including net earnings attributable to noncontrolling interests) to net cash provided by (used in) operating activities	(555,792		)	(1,322,939	)	(50,437	)	616,528		(1,312,640	)
Net cash provided by (used in) operating activities	495,430			(704,612	)	17,996		(616,528	)	(807,714	)
Cash flows from investing activities:
Distributions of capital and (investments in and contributions to) from unconsolidated entities, net	—			98,819		(22,207	)	—		76,612
Proceeds from sales of real estate owned	—			—		239,215		—		239,215
Decrease in Rialto defeasance cash to retire notes payable	—			—		223,813		—		223,813
Receipts of principal payments on loans receivable, net	—			—		66,788		—		66,788
Proceeds from sale of operating properties	—			—		140,564		—		140,564
Other	(233		)	(46,230	)	(11,280	)	—		(57,743	)
Intercompany	(1,333,932		)	—		—		1,333,932		—
Net cash provided by (used in) investing activities	(1,334,165		)	52,589		636,893		1,333,932		689,249
Cash flows from financing activities:
Net repayments under warehouse facilities	—			—		(7,811	)	—		(7,811	)
Net proceeds from convertible and senior notes	494,329			—		—		—		494,329
Redemption of senior notes	(63,001		)	(750	)	—		—		(63,751	)
Net proceeds from Rialto senior notes	—			—		242,736		—		242,736
Principal repayments on Rialto notes payable	—			—		(471,255	)	—		(471,255	)
Net repayments on other borrowings	—			(67,984	)	(126,779	)	—		(194,763	)
Exercise of land option contracts from an unconsolidated land investment venture	—			(28,869	)	—		—		(28,869	)
Net payments related to noncontrolling interests	—			—		(193,419	)			(193,419	)
Excess tax benefits from share-based awards	10,148			—		—		—		10,148
Common stock:
Issuances	34,114			—		—		—		34,114
Repurchases	(12,320		)	—		—		—		(12,320	)
Dividends	(30,912		)	(573,347	)	(43,181	)	616,528		(30,912	)
Intercompany	—			1,283,156		50,776		(1,333,932	)	—
Net cash provided by (used in) financing activities	432,358			612,206		(548,933	)	(717,404	)	(221,773	)
Net increase (decrease) in cash and cash equivalents	(406,377		)	(39,817	)	105,956		—		(340,238	)
Cash and cash equivalents at beginning of period	953,478			191,809		165,456		—		1,310,743
Cash and cash equivalents at end of period	$	547,101		151,992		271,412		—		970,505