Supplemental Financial Information

6 Months Ended

May 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The indentures governing the Company’s 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, 3.25% convertible senior notes due 2021, 4.750% 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 May 31, 2016 they were guaranteeing Lennar Corporation's letter of credit facilities and its Credit Facility, disclosed in Note 11. 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 May 31, 2016 was as follows:

Condensed Consolidating Balance Sheet

May 31, 2016



(In thousands)	Lennar Corporation		Guarantor Subsidiaries	Non-Guarantor Subsidiaries	Consolidating Adjustments		Total
ASSETS
Lennar Homebuilding:
Cash and cash equivalents, restricted cash and receivables, net	$	361,522	279,672	10,711	—		651,905
Inventories	—		9,368,371	281,332	—		9,649,703
Investments in unconsolidated entities	—		768,069	17,814	—		785,883
Other assets	197,626		349,288	81,234	18,407		646,555
Investments in subsidiaries	3,918,687		126,179	—	(4,044,866	)	—
Intercompany	7,238,368		—	—	(7,238,368	)	—
	11,716,203		10,891,579	391,091	(11,264,827	)	11,734,046
Rialto	—		—	1,171,987	—		1,171,987
Lennar Financial Services	—		92,606	1,335,975	(4,902	)	1,423,679
Lennar Multifamily	—		—	531,594	(13,505	)	518,089
Total assets	$	11,716,203	10,984,185	3,430,647	(11,283,234	)	14,847,801
LIABILITIES AND EQUITY
Lennar Homebuilding:
Accounts payable and other liabilities	$	525,737	693,769	67,109	—		1,286,615
Liabilities related to consolidated inventory not owned	—		19,390	96,424	—		115,814
Senior notes and other debts payable	5,072,100		233,285	10,850	—		5,316,235
Intercompany	—		6,397,212	841,156	(7,238,368	)	—
	5,597,837		7,343,656	1,015,539	(7,238,368	)	6,718,664
Rialto	—		—	596,628	—		596,628
Lennar Financial Services	—		33,770	1,045,728	—		1,079,498
Lennar Multifamily	—		—	90,077	—		90,077
Total liabilities	5,597,837		7,377,426	2,747,972	(7,238,368	)	8,484,867
Stockholders’ equity	6,118,366		3,606,759	438,107	(4,044,866	)	6,118,366
Noncontrolling interests	—		—	244,568	—		244,568
Total equity	6,118,366		3,606,759	682,675	(4,044,866	)	6,362,934
Total liabilities and equity	$	11,716,203	10,984,185	3,430,647	(11,283,234	)	14,847,801

Condensed 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

Condensed Consolidating Statement of Operations and Comprehensive Income

Three Months Ended May 31, 2016



(In thousands)	Lennar Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments		Total
Revenues:
Lennar Homebuilding	$	—		2,450,885		—		—		2,450,885
Lennar Financial Services	—			53,310		127,642		(5,012	)	175,940
Rialto	—			—		44,838		—		44,838
Lennar Multifamily	—			—		74,171		(19	)	74,152
Total revenues	—			2,504,195		246,651		(5,031	)	2,745,815
Cost and expenses:
Lennar Homebuilding	—			2,126,412		(6,231	)	(7,893	)	2,112,288
Lennar Financial Services	—			48,204		81,255		2,393		131,852
Rialto	—			—		50,260		(57	)	50,203
Lennar Multifamily	—			—		73,217		—		73,217
Corporate general and administrative	54,282			254		—		1,266		55,802
Total costs and expenses	54,282			2,174,870		198,501		(4,291	)	2,423,362
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities	—			(10,860	)	1,227		—		(9,633	)
Lennar Homebuilding other income (expense), net	729			23,816		(8,899	)	(721	)	14,925
Other interest expense	(1,461		)	(1,193	)	—		1,461		(1,193	)
Rialto equity in earnings from unconsolidated entities	—			—		6,864		—		6,864
Rialto other expense, net	—			—		(19,585	)	—		(19,585	)
Lennar Multifamily equity in earnings from unconsolidated entities	—			—		14,008		—		14,008
Earnings (loss) before income taxes	(55,014		)	341,088		41,765		—		327,839
Benefit (provision) for income taxes	18,025			(108,653	)	(13,173	)	—		(103,801	)
Equity in earnings from subsidiaries	255,458			15,458		—		(270,916	)	—
Net earnings (including net earnings attributable to noncontrolling interests)	218,469			247,893		28,592		(270,916	)	224,038
Less: Net earnings attributable to noncontrolling interests	—			—		5,569		—		5,569
Net earnings attributable to Lennar	$	218,469		247,893		23,023		(270,916	)	218,469
Other comprehensive income, net of tax:
Net unrealized gain on securities available-for-sale	$	—		—		919		—		919
Reclassification adjustments for gains included in earnings, net of tax	—			—		(6	)	—		(6	)
Other comprehensive income attributable to Lennar	$	218,469		247,893		23,936		(270,916	)	219,382
Other comprehensive income attributable to noncontrolling interests	$	—		—		5,569		—		5,569

Condensed Consolidating Statement of Operations and Comprehensive Income

Three Months Ended May 31, 2015



(In thousands)	Lennar Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments		Total
Revenues:
Lennar Homebuilding	$	—		2,115,812		—		—		2,115,812
Lennar Financial Services	—			52,822		122,075		(5,012	)	169,885
Rialto	—			—		67,931		—		67,931
Lennar Multifamily	—			—		38,981		(5	)	38,976
Total revenues	—			2,168,634		228,987		(5,017	)	2,392,604
Cost and expenses:
Lennar Homebuilding	—			1,807,439		19,511		(1,468	)	1,825,482
Lennar Financial Services	—			49,524		84,816		(3,508	)	130,832
Rialto	—			—		67,506		—		67,506
Lennar Multifamily	—			—		47,260		—		47,260
Corporate general and administrative	48,941			—		—		1,266		50,207
Total costs and expenses	48,941			1,856,963		219,093		(3,710	)	2,121,287
Lennar Homebuilding equity in earnings from unconsolidated entities	—			3,892		2,602		—		6,494
Lennar Homebuilding other income (expense), net	163			1,277		(1,504	)	(153	)	(217	)
Other interest expense	(1,460		)	(3,818	)	—		1,460		(3,818	)
Rialto equity in earnings from unconsolidated entities	—			—		7,328		—		7,328
Rialto other expense, net	—			—		(872	)	—		(872	)
Lennar Multifamily equity in loss from unconsolidated entities	—			—		(422	)	—		(422	)
Earnings (loss) before income taxes	(50,238		)	313,022		17,026		—		279,810
Benefit (provision) for income taxes	17,196			(105,552	)	(6,870	)	—		(95,226	)
Equity in earnings from subsidiaries	219,792			6,236		—		(226,028	)	—
Net earnings (including net earnings attributable to noncontrolling interests)	186,750			213,706		10,156		(226,028	)	184,584
Less: Net earnings attributable to noncontrolling interests	—			—		1,568		—		1,568
Net earnings attributable to Lennar	$	186,750		213,706		8,588		(226,028	)	183,016
Other comprehensive income, net of tax:
Net unrealized loss on securities available-for-sale	$	—		—		(94	)	—		(94	)
Reclassification adjustments for gains included in earnings, net of tax	—			—		(23	)	—		(23	)
Other comprehensive income attributable to Lennar	$	186,750		213,706		8,471		(226,028	)	182,899
Other comprehensive earnings attributable to noncontrolling interests	$	—		—		1,568		—		1,568

Condensed Consolidating Statement of Operations and Comprehensive Income

Six Months Ended May 31, 2016



(In thousands)	Lennar Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments		Total
Revenues:
Lennar Homebuilding	$	—		4,237,366		—		—		4,237,366
Lennar Financial Services	—			93,920		215,984		(10,008	)	299,896
Rialto	—			—		88,549		—		88,549
Lennar Multifamily	—			—		113,700		(32	)	113,668
Total revenues	—			4,331,286		418,233		(10,040	)	4,739,479
Cost and expenses:
Lennar Homebuilding	—			3,682,578		8,632		(10,717	)	3,680,493
Lennar Financial Services	—			90,016		151,324		(463	)	240,877
Rialto	—			—		93,477		(367	)	93,110
Lennar Multifamily	—			—		120,237		—		120,237
Corporate general and administrative	100,430			509		—		2,531		103,470
Total costs and expenses	100,430			3,773,103		373,670		(9,016	)	4,238,187
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities	—			(7,011	)	378		—		(6,633	)
Lennar Homebuilding other income, net	1,899			15,300		126		(1,881	)	15,444
Other interest expense	(2,905		)	(2,350	)	—		2,905		(2,350	)
Rialto equity in earnings from unconsolidated entities	—			—		8,361		—		8,361
Rialto other expense, net	—			—		(20,276	)	—		(20,276	)
Lennar Multifamily equity in earnings from unconsolidated entities	—			—		33,694		—		33,694
Earnings (loss) before income taxes	(101,436		)	564,122		66,846		—		529,532
Benefit (provision) for income taxes	31,060			(170,363	)	(20,739	)	—		(160,042	)
Equity in earnings from subsidiaries	432,925			19,996		—		(452,921	)	—
Net earnings (including net earnings attributable to noncontrolling interests)	362,549			413,755		46,107		(452,921	)	369,490
Less: Net earnings attributable to noncontrolling interests	—			—		6,941		—		6,941
Net earnings attributable to Lennar	$	362,549		413,755		39,166		(452,921	)	362,549
Other comprehensive income, net of tax:
Net unrealized gain on securities available-for-sale	$	—		—		482		—		482
Reclassification adjustments for gains included in earnings, net of tax	—			—		(6	)	—		(6	)
Other comprehensive income attributable to Lennar	$	362,549		413,755		39,642		(452,921	)	363,025
Other comprehensive income attributable to noncontrolling interests	$	—		—		6,941		—		6,941

Condensed Consolidating Statement of Operations and Comprehensive Income

Six Months Ended May 31, 2015



(In thousands)	Lennar Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments		Total
Revenues:
Lennar Homebuilding	$	—		3,557,470		—		—		3,557,470
Lennar Financial Services	—			90,971		213,734		(9,993	)	294,712
Rialto	—			—		109,128		—		109,128
Lennar Multifamily	—			—		75,438		(5	)	75,433
Total revenues	—			3,648,441		398,300		(9,998	)	4,036,743
Cost and expenses:
Lennar Homebuilding	—			3,076,932		20,030		(6,305	)	3,090,657
Lennar Financial Services	—			87,750		156,092		(3,710	)	240,132
Rialto	—			—		108,287		—		108,287
Lennar Multifamily	—			—		89,221		—		89,221
Corporate general and administrative	91,330			—		—		2,531		93,861
Total costs and expenses	91,330			3,164,682		373,630		(7,484	)	3,622,158
Lennar Homebuilding equity in earnings from unconsolidated entities	—			26,387		9,006		—		35,393
Lennar Homebuilding other income (expense), net	394			7,601		(1,504	)	(375	)	6,116
Other interest expense	(2,889		)	(7,889	)	—		2,889		(7,889	)
Rialto equity in earnings from unconsolidated entities	—			—		9,992		—		9,992
Rialto other expense, net	—			—		(1,144	)	—		(1,144	)
Lennar Multifamily equity in loss from unconsolidated entities	—			—		(600	)	—		(600	)
Earnings (loss) before income taxes	(93,825		)	509,858		40,420		—		456,453
Benefit (provision) for income taxes	32,098			(171,646	)	(15,404	)	—		(154,952	)
Equity in earnings from subsidiaries	359,706			20,086		—		(379,792	)	—
Net earnings (including net earnings attributable to noncontrolling interests)	297,979			358,298		25,016		(379,792	)	301,501
Less: Net earnings attributable to noncontrolling interests	—			—		3,522		—		3,522
Net earnings attributable to Lennar	$	297,979		358,298		21,494		(379,792	)	297,979
Other comprehensive income, net of tax:
Net unrealized gain on securities available-for-sale	$	—		—		106		—		106
Reclassification adjustments for gains included in earnings, net of tax	$	—		—		(23	)	—		(23	)
Other comprehensive income attributable to Lennar	$	297,979		358,298		21,577		(379,792	)	298,062
Other comprehensive earnings attributable to noncontrolling interests	$	—		—		3,522		—		3,522

Condensed Consolidating Statement of Cash Flows

Six Months Ended May 31, 2016



(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)	$	362,549		413,755		46,107		(452,921	)	369,490
Distributions of earnings from guarantor and non-guarantor subsidiaries	432,925			19,996		—		(452,921	)	—
Other adjustments to reconcile net earnings (including net earnings attributable to noncontrolling interests) to net cash provided by (used in) operating activities	(412,335		)	(789,132	)	203,674		452,921		(544,872	)
Net cash provided by (used in) operating activities	383,139			(355,381	)	249,781		(452,921	)	(175,382	)
Cash flows from investing activities:
Investments in and contributions to unconsolidated entities, net of distributions of capital	—			(65,441	)	(41,775	)	—		(107,216	)
Proceeds from sales of real estate owned	—			—		43,412		—		43,412
Receipts of principal payments on loans receivable	—			—		5,484		—		5,484
Originations of loans receivable	—			—		(16,864	)	—		(16,864	)
Purchases of commercial mortgage-backed securities bonds	—			—		(33,005	)	—		(33,005	)
Other	(6,704		)	(30,269	)	(4,465	)	—		(41,438	)
Distributions of capital from guarantor and non-guarantor subsidiaries	40,000			40,000		—		(80,000	)	—
Intercompany	(1,008,886		)	—		—		1,008,886		—
Net cash used in investing activities	(975,590		)	(55,710	)	(47,213	)	928,886		(149,627	)
Cash flows from financing activities:
Net borrowings under unsecured revolving credit facility	375,000			—		—		—		375,000
Net repayments under warehouse facilities	—			—		(230,206	)	—		(230,206	)
Proceeds from senior notes and debt issuance costs	495,974			—		(746	)	—		495,228
Redemption of senior notes	(250,000		)	—		—		—		(250,000	)
Conversions and exchanges of convertible senior notes	(233,893		)	—		—		—		(233,893	)
Principal payments on Rialto notes payable	—			—		(2,999	)	—		(2,999	)
Net repayments on other borrowings	—			(87,532	)			—		(87,532	)
Net payments related to noncontrolling interests	—					(73,028	)	—		(73,028	)
Excess tax benefits from share-based awards	7,039			—		—		—		7,039
Common stock:
Issuances	594			—		—		—		594
Repurchases	(971		)	—		—		—		(971	)
Dividends	(17,191		)	(453,755	)	(79,166	)	532,921		(17,191	)
Intercompany	—			879,733		129,153		(1,008,886	)	—
Net cash provided by (used in) financing activities	376,552			338,446		(256,992	)	(475,965	)	(17,959	)
Net decrease in cash and cash equivalents	(215,899		)	(72,645	)	(54,424	)	—		(342,968	)
Cash and cash equivalents at beginning of period	575,821			336,048		246,576		—		1,158,445
Cash and cash equivalents at end of period	$	359,922		263,403		192,152		—		815,477

Condensed Consolidating Statement of Cash Flows

Six Months Ended May 31, 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)	$	297,979		358,298		25,016		(379,792	)	301,501
Distributions of earnings from guarantor and non-guarantor subsidiaries	359,706			20,086		—		(379,792	)	—
Other adjustments to reconcile net earnings (including net earnings attributable to noncontrolling interests) to net cash provided by (used in) operating activities	(315,966		)	(985,129	)	(374,731	)	379,792		(1,296,034	)
Net cash provided by (used in) operating activities	341,719			(606,745	)	(349,715	)	(379,792	)	(994,533	)
Cash flows from investing activities:
Proceeds from sale of operating properties	—			—		73,732		—		73,732
Investments in and contributions to unconsolidated entities, net of distributions of capital	—			(11,716	)	(19,786	)	—		(31,502	)
Proceeds from sales of real estate owned	—			—		55,812		—		55,812
Receipts of principal payments on loans receivable	—			—		13,335		—		13,335
Other	(23,345		)	(42,038	)	(53,330	)	—		(118,713	)
Distribution of capital from guarantor and non-guarantor subsidiaries	30,000			30,000		—		(60,000	)	—
Intercompany	(1,286,061		)	—		—		1,286,061		—
Net cash provided by (used in) investing activities	(1,279,406		)	(23,754	)	69,763		1,226,061		(7,336	)
Cash flows from financing activities:
Net borrowings under unsecured revolving credit facility	450,000			—		—		—		450,000
Net borrowings under warehouse facilities	—			—		189,632		—		189,632
Proceeds from senior notes and debt issuance costs	744,409			—		(294	)	—		744,115
Redemption of senior notes	(500,000		)	—		—		—		(500,000	)
Principal repayments on Rialto notes payable including structured notes	—			—		(20,940	)	—		(20,940	)
Net proceeds (repayments) on other borrowings	20,988			(88,647	)	(69,501	)	—		(137,160	)
Net payments related to noncontrolling interests	—			—		(77,570	)	—		(77,570	)
Excess tax benefit from share-based awards	113			—		—		—		113
Common stock:
Issuances	9,412			—		—		—		9,412
Repurchases	(972		)	—		—		—		(972	)
Dividends	(16,418		)	(388,298	)	(51,494	)	439,792		(16,418	)
Intercompany	—			1,089,924		196,137		(1,286,061	)	—
Net cash provided by financing activities	707,532			612,979		165,970		(846,269	)	640,212
Net decrease in cash and cash equivalents	(230,155		)	(17,520	)	(113,982	)	—		(361,657	)
Cash and cash equivalents at beginning of period	633,318			255,501		392,995		—		1,281,814
Cash and cash equivalents at end of period	$	403,163		237,981		279,013		—		920,157