Delaware | 95-4337490 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Name of each exchange on which registered | |
Class A Common Stock, par value 10¢ | New York Stock Exchange | |
Class B Common Stock, par value 10¢ | New York Stock Exchange |
Large accelerated filer ý | Accelerated filer ¨ | Non-accelerated filer ¨ | Smaller reporting company ¨ |
(Do not check if a smaller reporting company) |
Related Section | Documents |
III | Definitive Proxy Statement to be filed pursuant to Regulation 14A on or before March 30, 2017. |
LENNAR CORPORATION | ||||
FORM 10-K | ||||
For the fiscal year ended November 30, 2016 | ||||
Part I | ||||
Item 1. | ||||
Item 1A. | ||||
Item 1B. | ||||
Item 2. | ||||
Item 3. | ||||
Item 4. | ||||
Part II | ||||
Item 5. | ||||
Item 6. | ||||
Item 7. | ||||
Item 7A. | ||||
Item 8. | ||||
Item 9. | ||||
Item 9A. | ||||
Item 9B. | ||||
Part III | ||||
Item 10. | ||||
Item 11. | ||||
Item 12. | ||||
Item 13. | ||||
Item 14. | ||||
Part IV | ||||
Item 15. | ||||
Signatures | ||||
Financial Statement Schedule |
Item 1. | Business |
• | Strong Operating Margins - We believe our operating leverage combined with our attractive land purchases position us for strong operating margins. |
• | Everything’s Included® Approach - We are focused on distinguishing our products, including through our Everything’s Included® approach, which maximizes our purchasing power and enables us to include luxury features as standard items in our homes. |
• | Innovative Homebuilding - We are constantly innovating the homes we build to create products that better meet our customers' needs and desires. Our Next Gen® home, or a home within a home, provides a unique new home solution for multi-generational households as homebuyers often need to accommodate children and parents to share the cost of their mortgage and other living expenses. In fiscal 2016, we delivered 1,186 Next Gen® homes representing an increase of 18% from the prior year and 4% of total home deliveries, excluding unconsolidated entities. The average sales price of the Next Gen® homes delivered in fiscal 2016 was $461,000, which is 28% above the average sales price of total home deliveries, excluding unconsolidated entities. |
• | Flexible Operating Structure - Our local operating structure gives us the flexibility to make operating decisions based on local homebuilding conditions and customer preferences, while our centralized management structure provides oversight for our homebuilding operations. |
• | Acquiring land directly from individual land owners/developers or homebuilders; |
• | Acquiring local or regional homebuilders that own, or have options to purchase, land in strategic markets; |
• | Acquiring land through option contracts, which generally enables us to control portions of properties owned by third parties (including land funds) and unconsolidated entities in which we have investments until we have determined whether to exercise the options; |
• | Acquiring parcels of land through joint ventures or partnerships, which among other benefits, limits the amount of our capital invested in land while increasing our access to potential future homesites and allowing us to participate in strategic ventures; |
• | Acquiring land in conjunction with Lennar Multifamily; and |
• | Acquiring assets from banks and opportunity funds, often through relationships established by our Rialto segment. |
Private Equity Vehicle | Inception Year | Commitment |
Rialto Real Estate Fund, LP | 2010 | $700 million (including $75 million by us) |
Rialto Real Estate Fund II, LP | 2012 | $1.3 billion (including $100 million by us) |
Rialto Mezzanine Partners Fund, LP | 2013 | $300 million (including $34 million by us) |
Rialto Capital CMBS Funds | 2014 | $119 million (including $52 million by us) |
Rialto Real Estate Fund III | 2015 | $1.3 billion (including $100 million by us) |
Rialto Credit Partnership, LP | 2016 | $220 million (including $20 million by us) |
• | Everything’s Included® marketing program, which simplifies the home buying experience by including most desirable features as standard items; |
• | Innovative home designs, such as our Next Gen® homes that provide both privacy and togetherness for the multi-generational families; |
• | Financial position, where we continue to focus on inventory management and liquidity; |
• | Access to land, particularly in land-constrained markets; |
• | Access to distressed assets, primarily through relationships established by our Rialto segment; |
• | Pricing to current market conditions through sales incentives offered to homebuyers; |
• | Cost efficiencies realized through our national purchasing programs and production of value-engineered homes; and |
• | Quality construction and home warranty programs, which are supported by a responsive customer care team. |
Item 1A. | Risk Factors. |
• | we may be more vulnerable to general adverse economic and homebuilding industry conditions; |
• | we may have to pay higher interest rates upon refinancing indebtedness if interest rates rise, thereby reducing our earnings and cash flows; |
• | we may find it difficult to, or may be unable to, obtain additional financing to fund future working capital, capital expenditures and other general corporate requirements that would be in our best long-term interests; |
• | we may be required to dedicate a substantial portion of our cash flow from operations to the payment of principal and interest on our debt, reducing the cash flow available to fund operations and investments; |
• | we may have reduced flexibility in planning for, or reacting to, changes in our businesses or the industries in which they are conducted; |
• | we may have a competitive disadvantage relative to other companies in our industry that are less leveraged; and |
• | we may be required to sell debt or equity securities or sell some of our core assets, possibly on unfavorable terms, in order to meet payment obligations. |
Item 1B. | Unresolved Staff Comments. |
Name | Position | Age |
Stuart Miller | Chief Executive Officer | 59 |
Richard Beckwitt | President | 57 |
Jonathan M. Jaffe | Vice President and Chief Operating Officer | 57 |
Bruce Gross | Vice President and Chief Financial Officer | 58 |
Diane J. Bessette | Vice President and Treasurer | 56 |
Mark Sustana | Secretary and General Counsel | 55 |
David M. Collins | Controller | 47 |
Item 2. | Properties. |
Item 3. | Legal Proceedings. |
Item 4. | Mine Safety Disclosures. |
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. |
Class A Common Stock High/Low Prices | Cash Dividends Per Class A Share | ||||||
Fiscal Quarter | 2016 | 2015 | 2016 | 2015 | |||
First | $52.49 - 37.14 | $51.51 - 41.25 | 4¢ | 4¢ | |||
Second | $48.96 - 42.37 | $53.67 - 44.76 | 4¢ | 4¢ | |||
Third | $49.60 - 43.11 | $56.04 - 45.78 | 4¢ | 4¢ | |||
Fourth | $47.60 - 39.68 | $54.23 - 46.23 | 4¢ | 4¢ |
Class B Common Stock High/Low Prices | Cash Dividends Per Class B Share | ||||||
Fiscal Quarter | 2016 | 2015 | 2016 | 2015 | |||
First | $42.70 - 30.04 | $41.21 - 32.75 | 4¢ | 4¢ | |||
Second | $39.30 - 33.71 | $42.59 - 36.14 | 4¢ | 4¢ | |||
Third | $39.93 - 34.68 | $46.55 - 37.61 | 4¢ | 4¢ | |||
Fourth | $38.17 - 32.09 | $45.69 - 38.23 | 4¢ | 4¢ |
Period: | Total Number of Shares Purchased (1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Maximum Number of Shares that may yet be Purchased under the Plans or Programs (2) | ||||||||
September 1 to September 30, 2016 | 228 | $ | 43.20 | — | 6,218,968 | |||||||
October 1 to October 31, 2016 | 320 | $ | 42.13 | — | 6,218,968 | |||||||
November 1 to November 30, 2016 | 177 | $ | 41.40 | — | 6,218,968 |
(1) | Represents shares of Class A common stock withheld by us to cover withholding taxes due, at the election of certain holders of nonvested shares, with market value approximating the amount of withholding taxes due. |
(2) | In June 2001, our Board of Directors authorized a stock repurchase program under which we were authorized to purchase up to 20 million shares of our outstanding Class A common stock or Class B common stock. This repurchase authorization has no expiration date. |
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | |||||||||||||
Lennar Corporation | $ | 100 | 208 | 197 | 261 | 284 | 237 | |||||||||||
Dow Jones U.S. Home Construction Index | $ | 100 | 182 | 189 | 226 | 256 | 225 | |||||||||||
Dow Jones U.S. Total Market Index | $ | 100 | 116 | 152 | 176 | 180 | 194 |
Item 6. | Selected Financial Data. |
At or for the Years Ended November 30, | |||||||||||||||
(Dollars in thousands, except per share amounts) | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||
Results of Operations: | |||||||||||||||
Revenues: | |||||||||||||||
Lennar Homebuilding | $ | 9,741,337 | 8,466,945 | 7,025,130 | 5,354,947 | 3,581,232 | |||||||||
Lennar Financial Services | $ | 687,255 | 620,527 | 454,381 | 427,342 | 384,618 | |||||||||
Rialto | $ | 233,966 | 221,923 | 230,521 | 138,060 | 138,856 | |||||||||
Lennar Multifamily | $ | 287,441 | 164,613 | 69,780 | 14,746 | 426 | |||||||||
Total revenues | $ | 10,949,999 | 9,474,008 | 7,779,812 | 5,935,095 | 4,105,132 | |||||||||
Operating earnings (loss): | |||||||||||||||
Lennar Homebuilding | $ | 1,344,932 | 1,271,641 | 1,033,721 | 733,075 | 258,985 | |||||||||
Lennar Financial Services | $ | 163,617 | 127,795 | 80,138 | 85,786 | 84,782 | |||||||||
Rialto | $ | (16,692 | ) | 33,595 | 44,079 | 26,128 | 11,569 | ||||||||
Lennar Multifamily | $ | 71,174 | (7,171 | ) | (10,993 | ) | (16,988 | ) | (5,884 | ) | |||||
Corporate general and administrative expenses | $ | 232,562 | 216,244 | 177,161 | 146,060 | 127,338 | |||||||||
Earnings before income taxes | $ | 1,330,469 | 1,209,616 | 969,784 | 681,941 | 222,114 | |||||||||
Net earnings attributable to Lennar (1) | $ | 911,844 | 802,894 | 638,916 | 479,674 | 679,124 | |||||||||
Diluted earnings per share | $ | 3.93 | 3.46 | 2.80 | 2.15 | 3.11 | |||||||||
Cash dividends declared per each - Class A and Class B common stock | $ | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | |||||||||
Financial Position: | |||||||||||||||
Total assets | $ | 15,361,781 | 14,419,509 | 12,923,151 | 11,239,885 | 10,323,177 | |||||||||
Debt: | |||||||||||||||
Lennar Homebuilding | $ | 4,575,977 | 5,025,130 | 4,661,266 | 4,165,792 | 3,971,348 | |||||||||
Rialto | $ | 622,335 | 771,728 | 617,077 | 437,161 | 569,154 | |||||||||
Lennar Financial Services | $ | 1,077,228 | 858,300 | 704,143 | 374,166 | 457,994 | |||||||||
Lennar Multifamily | $ | — | — | — | 13,858 | — | |||||||||
Stockholders’ equity | $ | 7,026,042 | 5,648,944 | 4,827,020 | 4,168,901 | 3,414,764 | |||||||||
Total equity | $ | 7,211,567 | 5,950,072 | 5,251,302 | 4,627,470 | 4,001,208 | |||||||||
Shares outstanding (000s) | 234,475 | 211,146 | 205,039 | 204,412 | 191,548 | ||||||||||
Stockholders’ equity per share | $ | 29.96 | 26.75 | 23.54 | 20.39 | 17.83 | |||||||||
Lennar Homebuilding Data (including unconsolidated entities): | |||||||||||||||
Number of homes delivered | 26,563 | 24,292 | 21,003 | 18,290 | 13,802 | ||||||||||
New orders | 27,372 | 25,106 | 22,029 | 19,043 | 15,684 | ||||||||||
Backlog of home sales contracts | 7,623 | 6,646 | 5,832 | 4,806 | 4,053 | ||||||||||
Backlog dollar value | $ | 2,891,538 | 2,477,751 | 1,974,328 | 1,619,601 | 1,160,385 |
(1) | Net earnings attributable to Lennar for the year ended November 30, 2013 included $177.0 million net tax provision, which included a tax benefit of $67.1 million for a valuation allowance reversal. Net earnings attributable to Lennar for the year ended November 30, 2012 included $435.2 million of benefit for income taxes, which included a reversal of the majority of our deferred tax asset valuation allowance of $491.5 million, partially offset by a tax provision for fiscal year 2012 pre-tax earnings. |
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Years Ended November 30, | |||||||||
(Dollars in thousands) | 2016 | 2015 | 2014 | ||||||
Lennar Homebuilding revenues: | |||||||||
Sales of homes | $ | 9,558,517 | 8,335,904 | 6,839,642 | |||||
Sales of land | 182,820 | 131,041 | 185,488 | ||||||
Total Lennar Homebuilding revenues | 9,741,337 | 8,466,945 | 7,025,130 | ||||||
Lennar Homebuilding costs and expenses: | |||||||||
Costs of homes sold | 7,362,853 | 6,332,850 | 5,103,409 | ||||||
Costs of land sold | 138,111 | 100,939 | 143,797 | ||||||
Selling, general and administrative | 898,917 | 831,050 | 714,823 | ||||||
Total Lennar Homebuilding costs and expenses | 8,399,881 | 7,264,839 | 5,962,029 | ||||||
Lennar Homebuilding operating margins | 1,341,456 | 1,202,106 | 1,063,101 | ||||||
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities | (49,275 | ) | 63,373 | (355 | ) | ||||
Lennar Homebuilding other income, net | 57,377 | 18,616 | 7,526 | ||||||
Other interest expense | (4,626 | ) | (12,454 | ) | (36,551 | ) | |||
Lennar Homebuilding operating earnings | $ | 1,344,932 | 1,271,641 | 1,033,721 | |||||
Lennar Financial Services revenues | $ | 687,255 | 620,527 | 454,381 | |||||
Lennar Financial Services costs and expenses | 523,638 | 492,732 | 374,243 | ||||||
Lennar Financial Services operating earnings | $ | 163,617 | 127,795 | 80,138 | |||||
Rialto revenues | $ | 233,966 | 221,923 | 230,521 | |||||
Rialto costs and expenses | 229,769 | 222,875 | 249,114 | ||||||
Rialto equity in earnings from unconsolidated entities | 18,961 | 22,293 | 59,277 | ||||||
Rialto other income (expense), net | (39,850 | ) | 12,254 | 3,395 | |||||
Rialto operating earnings (loss) | $ | (16,692 | ) | 33,595 | 44,079 | ||||
Lennar Multifamily revenues | 287,441 | 164,613 | 69,780 | ||||||
Lennar Multifamily costs and expenses | 301,786 | 191,302 | 95,227 | ||||||
Lennar Multifamily equity in earnings from unconsolidated entities | 85,519 | 19,518 | 14,454 | ||||||
Lennar Multifamily operating earnings (loss) | $ | 71,174 | (7,171 | ) | (10,993 | ) | |||
Total operating earnings | $ | 1,563,031 | 1,425,860 | 1,146,945 | |||||
Corporate general and administrative expenses | 232,562 | 216,244 | 177,161 | ||||||
Earnings before income taxes | $ | 1,330,469 | 1,209,616 | 969,784 | |||||
Net earnings attributable to Lennar | $ | 911,844 | 802,894 | 638,916 | |||||
Gross margin as a % of revenue from home sales | 23.0 | % | 24.0 | % | 25.4 | % | |||
S,G&A expenses as a % of revenues from home sales | 9.4 | % | 10.0 | % | 10.5 | % | |||
Operating margin as a % of revenues from home sales | 13.6 | % | 14.1 | % | 14.9 | % | |||
Average sales price | $ | 361,000 | 344,000 | 326,000 |
Years Ended November 30, | |||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||
Homebuilding revenues: | |||||||||
East: | |||||||||
Sales of homes | $ | 3,887,217 | 3,524,691 | 2,915,463 | |||||
Sales of land | 54,119 | 38,987 | 25,116 | ||||||
Total East | 3,941,336 | 3,563,678 | 2,940,579 | ||||||
Central: | |||||||||
Sales of homes | 2,218,590 | 1,888,126 | 1,584,122 | ||||||
Sales of land | 64,989 | 56,186 | 65,931 | ||||||
Total Central | 2,283,579 | 1,944,312 | 1,650,053 | ||||||
West: | |||||||||
Sales of homes | 2,704,670 | 2,338,652 | 1,761,762 | ||||||
Sales of land | 52,988 | 26,867 | 34,613 | ||||||
Total West | 2,757,658 | 2,365,519 | 1,796,375 | ||||||
Other: | |||||||||
Sales of homes | 748,040 | 584,435 | 578,295 | ||||||
Sales of land | 10,724 | 9,001 | 59,828 | ||||||
Total Other | 758,764 | 593,436 | 638,123 | ||||||
Total homebuilding revenues | $ | 9,741,337 | 8,466,945 | 7,025,130 |
Years Ended November 30, | |||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||
Operating earnings: | |||||||||
East: | |||||||||
Sales of homes | $ | 578,207 | 578,185 | 500,412 | |||||
Sales of land | 22,035 | 10,448 | 9,160 | ||||||
Equity in earnings (loss) from unconsolidated entities | (230 | ) | 118 | 1,678 | |||||
Other income (expense), net (1) | 20,579 | (1,615 | ) | 5,185 | |||||
Other interest expense | (3,416 | ) | (6,273 | ) | (14,364 | ) | |||
Total East | 617,175 | 580,863 | 502,071 | ||||||
Central: | |||||||||
Sales of homes (2) | 245,103 | 196,372 | 180,248 | ||||||
Sales of land (3) | 2,038 | 13,595 | 17,113 | ||||||
Equity in earnings (loss) from unconsolidated entities | 401 | 75 | (10 | ) | |||||
Other income (expense), net | (1,393 | ) | 775 | (7,172 | ) | ||||
Other interest expense | (174 | ) | (2,119 | ) | (6,972 | ) | |||
Total Central | 245,975 | 208,698 | 183,207 | ||||||
West: | |||||||||
Sales of homes | 396,696 | 358,054 | 286,393 | ||||||
Sales of land | 16,689 | 446 | 11,851 | ||||||
Equity in earnings (loss) from unconsolidated entities (4) | (49,731 | ) | 62,960 | (1,647 | ) | ||||
Other income, net (5) | 33,728 | 17,564 | 7,652 | ||||||
Other interest expense | (1,036 | ) | (3,206 | ) | (11,530 | ) | |||
Total West | 396,346 | 435,818 | 292,719 | ||||||
Other: | |||||||||
Sales of homes | 76,741 | 39,393 | 54,357 | ||||||
Sales of land | 3,947 | 5,613 | 3,567 | ||||||
Equity in earnings (loss) from unconsolidated entities | 285 | 220 | (376 | ) | |||||
Other income, net | 4,463 | 1,892 | 1,861 | ||||||
Other interest expense | — | (856 | ) | (3,685 | ) | ||||
Total Other | 85,436 | 46,262 | 55,724 | ||||||
Total homebuilding operating earnings | $ | 1,344,932 | 1,271,641 | 1,033,721 |
(1) | Other income, net, for the year ended November 30, 2016, included gains of $14.5 million on the sales of three clubhouses. Other expense, net, for the year ended November 30, 2015 primarily related to a loss on a strategic sale of an operating property from one of our consolidated joint ventures, partially offset by noncontrolling interests. |
(2) | Sales of homes for the year ended November 30, 2014 included a $12.0 million insurance recovery and other nonrecurring items. |
(3) | Sales of land for the year ended November 30, 2016 included $6.3 million of valuation adjustments to land we intend to sell or have sold to third parties. |
(4) | Equity in loss from unconsolidated entities for the year ended November 30, 2016 included our share of costs associated with the FivePoint combination and operational net losses from the new FivePoint unconsolidated entity, totaling $42.6 million, partially offset by $12.7 million of equity in earnings from one of our unconsolidated entities primarily due to sales of homesites to third parties. Equity in earnings from unconsolidated entities for the year ended November 30, 2015 included $82.8 million of equity in earnings from one of our unconsolidated entities primarily due to the sale of a commercial property and homesites to third parties and a gain on debt extinguishment. Equity in loss from unconsolidated entities for the year ended November 30, 2014 included our share of operating losses from various unconsolidated entities, which included $4.3 million of our share of valuation adjustments related to assets of Lennar Homebuilding's unconsolidated entities, partially offset by $4.7 million of equity in earnings as a result of third-party land sales by one unconsolidated entity. |
(5) | Other income, net, for the year ended November 30, 2016 included $30.1 million of management fee income and a profit participation related to Lennar Homebuilding's strategic joint ventures. Other income, net, for the year ended November 30, 2015 included a $6.5 million gain on the sale of an operating property. |
Years Ended November 30, | ||||||||
Homes | ||||||||
2016 | 2015 | 2014 | ||||||
East | 12,483 | 11,515 | 9,910 | |||||
Central | 6,788 | 6,171 | 5,638 | |||||
West | 5,734 | 5,245 | 4,141 | |||||
Other | 1,558 | 1,361 | 1,314 | |||||
Total | 26,563 | 24,292 | 21,003 |
Years Ended November 30, | |||||||||||||||||||
Dollar Value (In thousands) | Average Sales Price | ||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||||
East | $ | 3,890,405 | 3,527,612 | 2,921,080 | $ | 312,000 | 306,000 | 295,000 | |||||||||||
Central | 2,218,590 | 1,888,127 | 1,584,122 | 327,000 | 306,000 | 281,000 | |||||||||||||
West | 2,757,112 | 2,383,432 | 1,775,587 | 481,000 | 454,000 | 429,000 | |||||||||||||
Other | 748,040 | 584,435 | 578,295 | 480,000 | 429,000 | 440,000 | |||||||||||||
Total | $ | 9,614,147 | 8,383,606 | 6,859,084 | $ | 362,000 | 345,000 | 327,000 |
Years Ended November 30, | |||||||||
(In thousands) | |||||||||
2016 | 2015 | 2014 | |||||||
East | $ | 278,979 | 258,594 | 231,255 | |||||
Central | 183,921 | 153,173 | 134,468 | ||||||
West | 101,337 | 80,617 | 59,148 | ||||||
Other | 32,062 | 25,679 | 24,286 | ||||||
Total | $ | 596,299 | 518,063 | 449,157 |
Years Ended November 30, | ||||||||||||||||||
Average Sales Incentives Per Home Delivered | Sales Incentives as a % of Revenue | |||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | |||||||||||||
East | $ | 22,400 | 22,500 | 23,400 | 6.7 | % | 6.8 | % | 7.4 | % | ||||||||
Central | 27,100 | 24,800 | 23,900 | 7.7 | % | 7.5 | % | 7.8 | % | |||||||||
West | 17,900 | 15,600 | 14,300 | 3.6 | % | 3.3 | % | 3.2 | % | |||||||||
Other | 20,600 | 18,900 | 18,500 | 4.1 | % | 4.2 | % | 4.0 | % | |||||||||
Total | $ | 22,500 | 21,400 | 21,400 | 5.9 | % | 5.9 | % | 6.2 | % |
(1) | Sales incentives relate to home deliveries during the period, excluding deliveries by unconsolidated entities. |
Years Ended November 30, | ||||||||
Homes | ||||||||
2016 | 2015 | 2014 | ||||||
East | 12,764 | 11,579 | 10,123 | |||||
Central | 7,041 | 6,448 | 6,116 | |||||
West | 5,910 | 5,608 | 4,516 | |||||
Other | 1,657 | 1,471 | 1,274 | |||||
Total | 27,372 | 25,106 | 22,029 |
Years Ended November 30, | |||||||||||||||||||
Dollar Value (In thousands) | Average Sales Price | ||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||||
East | $ | 3,977,605 | 3,570,496 | 2,989,452 | $ | 312,000 | 308,000 | 295,000 | |||||||||||
Central | 2,354,618 | 2,037,339 | 1,742,292 | 334,000 | 316,000 | 285,000 | |||||||||||||
West | 2,832,993 | 2,617,393 | 1,956,157 | 479,000 | 467,000 | 433,000 | |||||||||||||
Other | 788,721 | 663,247 | 522,411 | 476,000 | 451,000 | 410,000 | |||||||||||||
Total | $ | 9,953,937 | 8,888,475 | 7,210,312 | $ | 364,000 | 354,000 | 327,000 |
(2) | New orders represent the number of new sales contracts executed with homebuyers, net of cancellations, during the years ended November 30, 2016, 2015 and 2014. |
November 30, | ||||||||
Homes | ||||||||
2016 | 2015 | 2014 | ||||||
East (3) | 3,243 | 2,852 | 2,788 | |||||
Central | 2,321 | 2,068 | 1,791 | |||||
West | 1,530 | 1,354 | 991 | |||||
Other (4) | 529 | 372 | 262 | |||||
Total | 7,623 | 6,646 | 5,832 |
November 30, | |||||||||||||||||||
Dollar Value (In thousands) | Average Sales Price | ||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||||
East | $ | 1,065,425 | 928,098 | 886,810 | $ | 329,000 | 325,000 | 318,000 | |||||||||||
Central | 821,608 | 685,750 | 536,463 | 354,000 | 332,000 | 300,000 | |||||||||||||
West | 748,488 | 671,524 | 437,492 | 489,000 | 496,000 | 441,000 | |||||||||||||
Other | 256,017 | 192,379 | 113,563 | 484,000 | 517,000 | 433,000 | |||||||||||||
Total | $ | 2,891,538 | 2,477,751 | 1,974,328 | $ | 379,000 | 373,000 | 339,000 |
(3) | During the year ended November 30, 2016, we acquired 110 homes in backlog. |
(4) | During the year ended November 30, 2016, we acquired 58 homes in backlog. |
Years Ended November 30, | ||||||||
2016 | 2015 | 2014 | ||||||
East | 14 | % | 15 | % | 16 | % | ||
Central | 20 | % | 21 | % | 21 | % | ||
West | 15 | % | 13 | % | 14 | % | ||
Other | 11 | % | 11 | % | 13 | % | ||
Total | 16 | % | 16 | % | 17 | % |
November 30, | ||||||||
2016 | 2015 | 2014 | ||||||
East | 303 | 284 | 265 | |||||
Central | 199 | 206 | 195 | |||||
West | 135 | 119 | 111 | |||||
Other | 58 | 56 | 54 | |||||
Total | 695 | 665 | 625 |
Years Ended November 30, | ||||||||||
(Dollars in thousands) | 2016 | 2015 | 2014 | |||||||
East: | ||||||||||
Sales of homes | $ | 3,887,217 | 3,524,691 | 2,915,463 | ||||||
Costs of homes sold | 2,935,921 | 2,599,855 | 2,112,474 | |||||||
Gross margins on home sales | 951,296 | 24.5% | 924,836 | 26.2% | 802,989 | 27.5% | ||||
Central: | ||||||||||
Sales of homes | 2,218,590 | 1,888,126 | 1,584,122 | |||||||
Costs of homes sold | 1,752,781 | 1,485,243 | 1,225,638 | |||||||
Gross margins on home sales | 465,809 | 21.0% | 402,883 | 21.3% | 358,484 | 22.6% | ||||
West: | ||||||||||
Sales of homes | 2,704,670 | 2,338,652 | 1,761,762 | |||||||
Costs of homes sold | 2,086,480 | 1,773,651 | 1,305,208 | |||||||
Gross margins on home sales | 618,190 | 22.9% | 565,001 | 24.2% | 456,554 | 25.9% | ||||
Other: | ||||||||||
Sales of homes | 748,040 | 584,435 | 578,295 | |||||||
Costs of homes sold | 587,671 | 474,101 | 460,089 | |||||||
Gross margins on home sales | 160,369 | 21.4% | 110,334 | 18.9% | 118,206 | 20.4% | ||||
Total gross margins on home sales | $ | 2,195,664 | 23.0% | 2,003,054 | 24.0% | 1,736,233 | 25.4% |
Years Ended November 30, | |||||||||
(Dollars in thousands) | 2016 | 2015 | 2014 | ||||||
Revenues | $ | 687,255 | 620,527 | 454,381 | |||||
Costs and expenses | 523,638 | 492,732 | 374,243 | ||||||
Operating earnings | $ | 163,617 | 127,795 | 80,138 | |||||
Dollar value of mortgages originated | $ | 9,343,000 | 8,877,000 | 5,950,000 | |||||
Number of mortgages originated | 33,500 | 32,600 | 23,300 | ||||||
Mortgage capture rate of Lennar homebuyers | 82 | % | 82 | % | 78 | % | |||
Number of title and closing service transactions | 116,000 | 108,600 | 90,700 | ||||||
Number of title policies issued | 298,900 | 263,500 | 220,400 |
Years Ended November 30, | |||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||
Revenues | $ | 233,966 | 221,923 | 230,521 | |||||
Costs and expenses (1) | 229,769 | 222,875 | 249,114 | ||||||
Rialto equity in earnings from unconsolidated entities | 18,961 | 22,293 | 59,277 | ||||||
Rialto other income (expense), net | (39,850 | ) | 12,254 | 3,395 | |||||
Operating earnings (loss) (2) | $ | (16,692 | ) | 33,595 | 44,079 |
(1) | Costs and expenses included loan impairments of $18.2 million, $10.4 million and $57.1 million for the years ended November 30, 2016, 2015 and 2014, respectively, primarily associated with the segment's FDIC loans portfolio (before noncontrolling interests). |
(2) | Operating earnings (loss) for the years ended November 30, 2016, 2015 and 2014 included net earnings (loss) attributable to noncontrolling interests of ($18.8) million, $4.8 million and ($22.5) million, respectively. |
Years Ended November 30, | |||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||
Realized gains on REO sales, net | $ | 17,495 | 35,242 | 43,671 | |||||
Unrealized losses on transfer of loans receivable to REO and impairments, net | (23,087 | ) | (13,678 | ) | (26,107 | ) | |||
REO and other expenses | (54,008 | ) | (57,740 | ) | (58,067 | ) | |||
Rental and other income (1) | 19,750 | 48,430 | 43,898 | ||||||
Rialto other income (expense), net | $ | (39,850 | ) | 12,254 | 3,395 |
(1) | Rental and other income for the year ended November 30, 2016, included a $16.0 million write-off of uncollectible receivables related to the hospital. |
Private Equity Vehicle | Inception Year | Commitment |
Rialto Real Estate Fund, LP | 2010 | $700 million (including $75 million by us) |
Rialto Real Estate Fund II, LP | 2012 | $1.3 billion (including $100 million by us) |
Rialto Mezzanine Partners Fund, LP | 2013 | $300 million (including $34 million by us) |
Rialto Capital CMBS Funds | 2014 | $119 million (including $52 million by us) |
Rialto Real Estate Fund III | 2015 | $1.3 billion (including $100 million by us) |
Rialto Credit Partnership, LP | 2016 | $220 million (including $20 million by us) |
November 30, | ||||||
(Dollars in thousands) | 2016 | 2015 | ||||
Lennar Homebuilding debt | $ | 4,575,977 | 5,025,130 | |||
Stockholders’ equity | 7,026,042 | 5,648,944 | ||||
Total capital | $ | 11,602,019 | 10,674,074 | |||
Lennar Homebuilding debt to total capital | 39.4 | % | 47.1 | % | ||
Lennar Homebuilding debt | $ | 4,575,977 | 5,025,130 | |||
Less: Lennar Homebuilding cash and cash equivalents | 1,050,138 | 893,408 | ||||
Net Lennar Homebuilding debt | $ | 3,525,839 | 4,131,722 | |||
Net Lennar Homebuilding debt to total capital (1) | 33.4 | % | 42.2 | % |
(1) | Net Lennar Homebuilding debt to total capital is a non-GAAP financial measure defined as net Lennar Homebuilding debt (Lennar Homebuilding debt less Lennar Homebuilding cash and cash equivalents) divided by total capital (net Lennar Homebuilding debt plus stockholders' equity). We believe the ratio of net Lennar Homebuilding debt to total capital is a relevant and a useful financial measure to investors in understanding the leverage employed in our Lennar Homebuilding operations. However, because net Lennar Homebuilding debt to total capital is not calculated in accordance with GAAP, this financial measure should not be considered in isolation or as an alternative to financial measures prescribed by GAAP. Rather, this non-GAAP financial measure should be used to supplement our GAAP results. |
November 30, | ||||||
(Dollars in thousands) | 2016 | 2015 | ||||
12.25% senior notes due 2017 | $ | 398,232 | 396,252 | |||
4.75% senior notes due December 2017 | 398,479 | 397,736 | ||||
6.95% senior notes due 2018 | 248,474 | 247,632 | ||||
4.125% senior notes due December 2018 | 273,889 | 273,319 | ||||
4.500% senior notes due 2019 | 498,002 | 497,210 | ||||
4.50% senior notes due 2019 | 597,474 | 596,622 | ||||
4.750% senior notes due 2021 | 496,547 | — | ||||
4.750% senior notes due 2022 | 568,404 | 567,325 | ||||
4.875% senior notes due December 2023 | 394,170 | 393,545 | ||||
4.750% senior notes due 2025 | 496,226 | 495,784 | ||||
6.50% senior notes due 2016 | — | 249,905 | ||||
2.75% convertible senior notes due 2020 | — | 233,225 | ||||
3.25% convertible senior notes due 2021 | — | 398,194 | ||||
Mortgages notes on land and other debt | 206,080 | 278,381 | ||||
$ | 4,575,977 | 5,025,130 |
Senior Notes Outstanding (1) | Principal Amount | Net Proceeds (2) | Price | Dates Issued | |||||||||
(Dollars in thousands) | |||||||||||||
12.25% senior notes due 2017 | $ | 400,000 | $ | 386,700 | 98.098 | % | April 2009 | ||||||
4.75% senior notes due December 2017 | 400,000 | 395,900 | 100 | % | July 2012, August 2012 | ||||||||
6.95% senior notes due 2018 | 250,000 | 243,900 | 98.929 | % | May 2010 | ||||||||
4.125% senior notes due December 2018 | 275,000 | 271,718 | 99.998 | % | February 2013 | ||||||||
4.500% senior notes due 2019 | 500,000 | 495,725 | (3) | February 2014 | |||||||||
4.50% senior notes due 2019 | 600,000 | 595,801 | (4) | November 2014, February 2015 | |||||||||
4.750% senior notes due 2021 | 500,000 | 495,974 | 100 | % | March 2016 | ||||||||
4.750% senior notes due 2022 | 575,000 | 567,585 | (5) | October 2012, February 2013, April 2013 | |||||||||
4.875% senior notes due December 2023 | 400,000 | 393,622 | 99.169 | % | November 2015 | ||||||||
4.750% senior notes due 2025 | 500,000 | 495,528 | 100 | % | April 2015 |
(1) | Interest is payable semi-annually for each of the series of senior notes. The senior notes are unsecured and unsubordinated, but are guaranteed by substantially all of the our 100% owned homebuilding subsidiaries. |
(2) | We generally uses the net proceeds for working capital and general corporate purposes, which can include the repayment or repurchase of other outstanding senior notes. |
(3) | We issued $400 million aggregate principal amount at a price of 100% and $100 million aggregate principal amount at a price of 100.5%. |
(4) | We issued $350 million aggregate principal amount at a price of 100% and $250 million aggregate principal amount at a price of 100.25%. |
(5) | We issued $350 million aggregate principal amount at a price of 100%, $175 million aggregate principal amount at a price of 98.073% and $50 million aggregate principal amount at a price of 98.250%. |
(Dollars in thousands) | Covenant Level | Level Achieved as of November 30, 2016 | ||||
Minimum net worth test | $ | 3,000,798 | 5,769,195 | |||
Maximum leverage ratio | 65.0 | % | 35.4 | % | ||
Liquidity test (1) | 1.00 | 3.87 |
(1) | We are only required to maintain either (1) liquidity in an amount equal to or greater than 1.00x consolidated interest incurred for the last twelve months then ended or (2) an interest coverage ratio of equal to or greater than 1.50:1.00 for the last twelve months then ended. Although we are in compliance with our debt covenants for both calculations, we have only disclosed our liquidity test. |
(In thousands) | Maximum Aggregate Commitment | ||
364-day warehouse repurchase facility that matures December 2016 (1)(2) | $ | 400,000 | |
364-day warehouse repurchase facility that matures June 2017 (3) | 600,000 | ||
364-day warehouse repurchase facility that matures September 2017 | 300,000 | ||
Total | $ | 1,300,000 |
(1) | Maximum aggregate commitment includes an uncommitted amount of $250 million. |
(2) | Subsequent to November 30, 2016, the warehouse repurchase facility maturity date was extended to December 2017. |
(3) | In accordance with the amended warehouse repurchase facility agreement, the maximum aggregate commitment will be decreased to $400 million in the first quarter of fiscal 2017 and will be increased to $600 million in the second quarter of fiscal 2017. |
(In thousands) | Maximum Aggregate Commitment | ||
364-day warehouse repurchase facility that matures April 2017 (1)(2) | $ | 500,000 | |
364-day warehouse repurchase facility that matures January 2017 (1) | 250,000 | ||
Warehouse repurchase facility that matures December 2017 (1) | 200,000 | ||
Warehouse repurchase facility that matures August 2018 (two - one year extensions) (3) | 100,000 | ||
Totals | $ | 1,050,000 |
(1) | RMF uses these facilities to finance its loan origination and securitization business. |
(2) | The warehouse repurchase facility has the option of an additional six month extension. |
(3) | Rialto uses this warehouse repurchase facility to finance the origination of floating rate accrual loans which are reported as accrual loans within loans receivable, net. Borrowings under this facility were $43.3 million and $36.3 million as of November 30, 2016 and 2015, respectively. |
Years Ended November 30, | |||||||||
(Dollars in thousands) | 2016 | 2015 | 2014 | ||||||
Revenues | $ | 439,874 | 1,309,517 | 263,395 | |||||
Costs and expenses | 578,831 | 969,509 | 291,993 | ||||||
Other income | — | 49,343 | — | ||||||
Net earnings (loss) of unconsolidated entities | $ | (138,957 | ) | 389,351 | (28,598 | ) | |||
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities | $ | (49,275 | ) | 63,373 | (355 | ) | |||
Lennar Homebuilding cumulative share of net earnings - deferred at November 30 | $ | 41,495 | 42,651 | 6,593 | |||||
Lennar Homebuilding investments in unconsolidated entities | $ | 811,723 | 741,551 | 656,837 | |||||
Equity of the unconsolidated entities | $ | 3,765,336 | 2,692,360 | 2,278,941 | |||||
Lennar Homebuilding investment % in the unconsolidated entities (1) | 22 | % | 28 | % | 29 | % |
(1) | Our share of profit and cash distributions from the sales of land could be higher compared to our ownership interest in unconsolidated entities if certain specified internal rate of return or cash flow milestones are achieved. |
November 30, | ||||||
(In thousands) | 2016 | 2015 | ||||
Assets: | ||||||
Cash and cash equivalents | $ | 221,334 | 248,980 | |||
Inventories | 3,889,795 | 3,059,054 | ||||
Other assets | 1,338,302 | 465,404 | ||||
$ | 5,449,431 | 3,773,438 | ||||
Liabilities and equity: | ||||||
Accounts payable and other liabilities | $ | 791,245 | 288,192 | |||
Debt | 892,850 | 792,886 | ||||
Equity | 3,765,336 | 2,692,360 | ||||
$ | 5,449,431 | 3,773,438 |
November 30, | ||||||
(Dollars in thousands) | 2016 | 2015 | ||||
Debt | $ | 892,850 | 792,886 | |||
Equity | 3,765,336 | 2,692,360 | ||||
Total capital | $ | 4,658,186 | 3,485,246 | |||
Debt to total capital of our unconsolidated entities | 19.2 | % | 22.7 | % |
November 30, | ||||||
(In thousands) | 2016 | 2015 | ||||
Land development | $ | 787,138 | 691,850 | |||
Homebuilding | 24,585 | 49,701 | ||||
Total investments | $ | 811,723 | 741,551 |
November 30, | ||||||
(Dollars in thousands) | 2016 | 2015 | ||||
Non-recourse bank debt and other debt (partner’s share of several recourse) | $ | 48,945 | 50,411 | |||
Non-recourse land seller debt and other debt (1) | 323,995 | 324,000 | ||||
Non-recourse debt with completion guarantees | 147,100 | 146,760 | ||||
Non-recourse debt without completion guarantees | 320,372 | 260,734 | ||||
Non-recourse debt to the Lennar | 840,412 | 781,905 | ||||
Lennar’s maximum recourse exposure (2) | 52,438 | 10,981 | ||||
Total debt | $ | 892,850 | 792,886 | |||
Lennar’s maximum recourse exposure as a % of total JV debt | 6 | % | 1 | % |
(1) | Non-recourse land seller debt and other debt as of both November 30, 2016 and 2015, included a $320 million non-recourse note related to a transaction between one of our unconsolidated entities and another unconsolidated joint venture, described previously, which was settled subsequent to November 30, 2016. |
(2) | As of November 30, 2016, the increase in our maximum recourse exposure was primarily related to us providing a repayment guarantee on an unconsolidated entity's debt. |
Principal Maturities of Unconsolidated JVs by Period | |||||||||||||||||||
(In thousands) | Total JV Debt | 2017 | 2018 | 2019 | Thereafter | Other Debt (1) | |||||||||||||
Maximum recourse debt exposure to Lennar | $ | 52,438 | 9,015 | — | 38,136 | 5,287 | — | ||||||||||||
Debt without recourse to Lennar | 840,412 | 79,719 | 148,868 | 214,846 | 72,984 | 323,995 | |||||||||||||
Total | $ | 892,850 | 88,734 | 148,868 | 252,982 | 78,271 | 323,995 |
(1) | Represents land seller debt and other debt of which $320 million was due and settled in December 2016. |
(Dollars in thousands) | Lennar’s Investment | Total JV Assets | Maximum Recourse Debt Exposure to Lennar | Total Debt Without Recourse to Lennar | Total JV Debt | Total JV Equity | JV Debt to Total Capital Ratio | ||||||||||||||
Top Ten JVs (1): | |||||||||||||||||||||
FivePoint (2) | $ | 255,649 | 2,126,717 | — | 69,303 | 69,303 | 1,520,563 | 4 | % | ||||||||||||
Heritage Fields El Toro | 146,091 | 1,494,232 | — | 9,703 | 9,703 | 1,309,979 | 1 | % | |||||||||||||
Heritage Hills Irvine (3) | 63,304 | 511,328 | — | — | — | 171,878 | — | ||||||||||||||
Runkle Canyon | 45,163 | 134,633 | — | 42,861 | 42,861 | 90,326 | 32 | % | |||||||||||||
Treasure Island Community Development | 42,216 | 147,600 | — | 54,177 | 54,177 | 84,464 | 39 | % | |||||||||||||
Ballpark Village | 29,112 | 100,535 | — | 25,235 | 25,235 | 60,225 | 30 | % | |||||||||||||
Krome Groves Land Trust | 21,366 | 89,733 | 9,015 | 19,240 | 28,255 | 59,049 | 32 | % | |||||||||||||
MS Rialto Residential Holdings | 20,448 | 83,280 | — | — | — | 80,816 | — | ||||||||||||||
Fifth Wall Ventures SPV I | 20,359 | 20,365 | — | — | — | 20,361 | — | ||||||||||||||
Willow Springs Properties | 19,017 | 34,212 | — | — | — | 32,301 | — | ||||||||||||||
10 largest JV investments | 662,725 | 4,742,635 | 9,015 | 220,519 | 229,534 | 3,429,962 | 6 | % | |||||||||||||
Other JVs | 148,998 | 706,796 | 43,423 | 295,898 | 339,321 | 335,374 | 50 | % | |||||||||||||
Total | $ | 811,723 | 5,449,431 | 52,438 | 516,417 | 568,855 | 3,765,336 | 13 | % | ||||||||||||
Land seller debt and other debt (3) | — | 323,995 | 323,995 | ||||||||||||||||||
Total JV debt | 52,438 | 840,412 | 892,850 |
(1) | The 10 largest joint ventures presented above represent the majority of total JVs assets and equity and 17% of total JV maximum recourse debt exposure to Lennar and 43% of total JV debt without recourse to Lennar. In addition, all of the joint ventures presented in the table above operate in our Homebuilding West segment except for Krome Groves Land Trust, which operates in our Homebuilding East segment and Willow Springs Properties, which operates in our Homebuilding Central segment. |
(2) | The amounts presented above for FivePoint are preliminary and may be adjusted when additional information is obtained during the transaction's measurement period (a period of up to one year from the FivePoint combination). |
(3) | The Heritage Hills Irvine JV has a $320 million non-recourse note payable to Heritage Fields El Toro that was settled subsequent to November 30, 2016, which is included in land seller debt and other debt line item in the table. |
November 30, 2016 | November 30, 2016 | November 30, 2015 | ||||||||||||||||||||||
(In thousands) | Inception Year | Equity Commitments | Equity Commitments Called | Commitment to Fund by the Company | Funds Contributed by the Company | Investment | ||||||||||||||||||
Rialto Real Estate Fund, LP | 2010 | $ | 700,006 | $ | 700,006 | $ | 75,000 | $ | 75,000 | $ | 58,116 | 68,570 | ||||||||||||
Rialto Real Estate Fund II, LP | 2012 | 1,305,000 | 1,305,000 | 100,000 | 100,000 | 96,192 | 99,947 | |||||||||||||||||
Rialto Mezzanine Partners Fund, LP | 2013 | 300,000 | 300,000 | 33,799 | 33,799 | 23,643 | 32,344 | |||||||||||||||||
Rialto Capital CMBS Funds | 2014 | 119,174 | 119,174 | 52,474 | 52,474 | 50,519 | 23,233 | |||||||||||||||||
Rialto Real Estate Fund III | 2015 | 1,289,180 | 128,871 | 100,000 | 7,239 | 9,093 | — | |||||||||||||||||
Rialto Credit Partnership, LP | 2016 | 220,000 | 63,150 | 19,999 | 5,741 | 5,794 | — | |||||||||||||||||
Other investments | 2,384 | 775 | ||||||||||||||||||||||
$ | 245,741 | 224,869 |
Years Ended November 30, | |||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||
Rialto Real Estate Fund, LP | $ | 7,633 | 9,588 | 34,693 | |||||
Rialto Real Estate Fund II, LP | 100 | 9,383 | — | ||||||
Rialto Mezzanine Partners Fund, LP | 750 | 513 | — | ||||||
Rialto Capital CMBS Funds | 1,639 | 516 | — | ||||||
$ | 10,122 | 20,000 | 34,693 |
(In thousands) | Hypothetical Carried Interest | Paid as Advanced Tax Distribution | Hypothetical Carried Interest, Net | ||||||
Rialto Real Estate Fund, LP | $ | 168,925 | 51,913 | 117,012 | |||||
Rialto Real Estate Fund II, LP (1) | 33,551 | 9,484 | 24,067 | ||||||
$ | 202,476 | 61,397 | 141,079 |
(1) | Net of interests of participating employees (refer to paragraph below). |
November 30, | ||||||
(In thousands) | 2016 | 2015 | ||||
Assets: | ||||||
Cash and cash equivalents | $ | 230,229 | 188,147 | |||
Loans receivable | 406,812 | 473,997 | ||||
Real estate owned | 439,191 | 506,609 | ||||
Investment securities | 1,379,155 | 1,092,476 | ||||
Investments in partnerships | 398,535 | 429,979 | ||||
Other assets | 31,902 | 30,340 | ||||
$ | 2,885,824 | 2,721,548 | ||||
Liabilities and equity: | ||||||
Accounts payable and other liabilities | $ | 36,131 | 29,462 | |||
Notes payable | 535,130 | 374,498 | ||||
Equity | 2,314,563 | 2,317,588 | ||||
$ | 2,885,824 | 2,721,548 |
Years Ended November 30, | |||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||
Revenues | $ | 200,346 | 170,921 | 150,452 | |||||
Costs and expenses | 96,343 | 97,162 | 95,629 | ||||||
Other income, net (1) | 49,342 | 144,941 | 479,929 | ||||||
Net earnings of unconsolidated entities | $ | 153,345 | 218,700 | 534,752 | |||||
Rialto equity in earnings from unconsolidated entities | $ | 18,961 | 22,293 | 59,277 | |||||
Rialto's investments in unconsolidated entities | $ | 245,741 | 224,869 | 175,700 | |||||
Equity of the unconsolidated entities | $ | 2,314,563 | 2,317,588 | 1,767,912 | |||||
Rialto's investment % in the unconsolidated entities | 11 | % | 10 | % | 10 | % |
(1) | Other income, net, included realized and unrealized gains (losses) on investments. |
November 30, | ||||||
(In thousands) | 2016 | 2015 | ||||
Assets: | ||||||
Cash and cash equivalents | $ | 43,658 | 39,579 | |||
Operating properties and equipment | 2,210,627 | 1,398,244 | ||||
Other assets | 46,015 | 25,925 | ||||
$ | 2,300,300 | 1,463,748 | ||||
Liabilities and equity: | ||||||
Accounts payable and other liabilities | $ | 196,617 | 179,551 | |||
Notes payable | 589,397 | 466,724 | ||||
Equity | 1,514,286 | 817,473 | ||||
$ | 2,300,300 | 1,463,748 |
Principal Maturities of Lennar Multifamily Unconsolidated JVs by Period | ||||||||||||||||
(In thousands) | Total JV Debt | 2017 | 2018 | 2019 | Thereafter | |||||||||||
Debt without recourse to Lennar Multifamily | $ | 589,397 | 304,220 | 119,590 | 90,983 | 74,604 |
Years Ended November 30, | |||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||
Revenues | $ | 45,287 | 16,309 | 4,855 | |||||
Costs and expenses | 68,976 | 27,190 | 7,435 | ||||||
Other income, net | 191,385 | 43,340 | 35,068 | ||||||
Net earnings of unconsolidated entities | $ | 167,696 | 32,459 | 32,488 | |||||
Lennar Multifamily equity in earnings from unconsolidated entities (1) | $ | 85,519 | 19,518 | 14,454 | |||||
Our investments in unconsolidated entities | $ | 318,559 | 250,876 | 105,674 | |||||
Equity of the unconsolidated entities | $ | 1,514,286 | 817,473 | 426,793 | |||||
Our investment % in the unconsolidated entities (2) | 21 | % | 31 | % | 25 | % |
(1) | During the year ended November 30, 2016, Lennar Multifamily equity in earnings from unconsolidated entities included the segment's $91.0 million share of gains as a result of the sale of seven operating properties by its unconsolidated entities. During the years ended November 30, 2015 and 2014, Lennar Multifamily equity in earnings from unconsolidated entities included the segment's $22.2 million and $14.7 million share of gains, respectively, as a result of the sale of two operating properties each year by its unconsolidated entities. |
(2) | Our share of profit and cash distributions from sales of operating properties could be higher compared to our ownership interest in unconsolidated entities if certain specified internal rate of return milestones are achieved. |
Controlled Homesites | ||||||||||||||
November 30, 2016 | Optioned | JVs | Total | Owned Homesites | Total Homesites | |||||||||
East | 17,185 | 482 | 17,667 | 51,453 | 69,120 | |||||||||
Central | 5,726 | 1,135 | 6,861 | 32,690 | 39,551 | |||||||||
West | 2,409 | 4,899 | 7,308 | 35,451 | 42,759 | |||||||||
Other | 1,330 | — | 1,330 | 6,285 | 7,615 | |||||||||
Total homesites | 26,650 | 6,516 | 33,166 | 125,879 | 159,045 |
Controlled Homesites | ||||||||||||||
November 30, 2015 | Optioned | JVs | Total | Owned Homesites | Total Homesites | |||||||||
East | 21,922 | 494 | 22,416 | 50,212 | 72,628 | |||||||||
Central | 7,823 | 1,135 | 8,958 | 31,301 | 40,259 | |||||||||
West | 2,172 | 4,829 | 7,001 | 37,934 | 44,935 | |||||||||
Other | 1,574 | — | 1,574 | 6,467 | 8,041 | |||||||||
Total homesites | 33,491 | 6,458 | 39,949 | 125,914 | 165,863 |
Payments Due by Period | |||||||||||||||
(In thousands) | Total | Less than 1 year | 1 to 3 years | 3 to 5 years | More than 5 years | ||||||||||
Lennar Homebuilding - Senior notes and other debts payable (1) | $ | 4,605,330 | 478,333 | 2,078,329 | 523,718 | 1,524,950 | |||||||||
Lennar Financial Services - Notes and other debts payable | 1,077,228 | 1,077,045 | 183 | — | — | ||||||||||
Rialto - Notes and other debts payable (2) | 624,689 | 249,186 | 375,503 | — | — | ||||||||||
Interest commitments under interest bearing debt (3) | 930,940 | 251,344 | 340,822 | 178,627 | 160,147 | ||||||||||
Operating leases | 148,189 | 39,607 | 58,696 | 33,766 | 16,120 | ||||||||||
Other contractual obligations (4) | 395,219 | 250,419 | 108,800 | 36,000 | — | ||||||||||
Total contractual obligations (5) | $ | 7,781,595 | 2,345,934 | 2,962,333 | 772,111 | 1,701,217 |
(1) | The amounts presented in the table above exclude debt issuance costs and any discounts/premiums. Subsequent to November 30, 2016, we issued $600 million aggregate principal amount of 4.125% senior notes due 2022. |
(2) | Amounts include notes payable and other debts payable of $351.0 million related to Rialto's 7.00% Senior Notes, $223.5 million related to the Rialto warehouse repurchase facilities and $23.9 million related to Rialto's Structured Notes with an estimated final payment date of December 15, 2017. These amounts exclude debt issuance costs. |
(3) | Interest commitments on variable interest-bearing debt are determined based on the interest rate as of November 30, 2016. |
(4) | Amounts include $288.2 million remaining equity commitment to fund the Venture for future expenditures related to the construction and development of the projects, $92.8 million of commitments to fund Rialto's Fund III and $14.3 million of commitments to fund Rialto's RCP. |
(5) | Total contractual obligations exclude our gross unrecognized tax benefits and accrued interest and penalties totaling $58.3 million as of November 30, 2016, because we are unable to make reasonable estimates as to the period of cash settlement with the respective taxing authorities. |
• | Rialto/Lennar owns 40% of the equity of the LLCs and has the power to direct the activities of the LLCs that most significantly impact their economic performance through loan resolutions and the sale of REO. |
• | Rialto/Lennar has a management/servicer contract under which we earn a 0.5% servicing fee. |
• | Rialto/Lennar has guaranteed, as the servicer, its obligations under the servicing agreement up to $10 million. |
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk. |
Years Ending November 30, | Fair Value at November 30, | |||||||||||||||||||||||
(Dollars in millions) | 2017 | 2018 | 2019 | 2020 | 2021 | Thereafter | Total | 2016 | ||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Rialto: | ||||||||||||||||||||||||
Loans receivable, net: | ||||||||||||||||||||||||
Accrual loans: | ||||||||||||||||||||||||
Fixed rate | $ | — | — | — | — | — | 1.4 | 1.4 | 1.4 | |||||||||||||||
Average interest rate | — | — | — | — | — | 5.0 | % | 5.0 | % | — | ||||||||||||||
Variable rate | $ | 30.3 | 32.8 | — | — | — | — | 63.1 | 63.1 | |||||||||||||||
Average interest rate | 6.6 | % | 5.6 | % | — | — | — | — | 6.1 | % | — | |||||||||||||
Investments held-to-maturity: | ||||||||||||||||||||||||
Fixed rate | $ | — | — | — | 20.3 | — | 51.0 | 71.3 | 70.0 | |||||||||||||||
Average interest rate | — | — | — | 4.0 | % | — | 2.7 | % | 3.3 | % | — | |||||||||||||
Lennar Financial Services: | ||||||||||||||||||||||||
Loans held-for-investment, net and investments held-to-maturity: | ||||||||||||||||||||||||
Fixed rate | $ | 34.7 | 6.6 | 3.3 | 1.1 | 1.4 | 21.9 | 69.0 | 70.0 | |||||||||||||||
Average interest rate | 1.8 | % | 2.8 | % | 3.3 | % | 5.0 | % | 5.3 | % | 4.6 | % | 3.0 | % | — | |||||||||
Variable rate | $ | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 2.5 | 3.0 | 3.3 | |||||||||||||||
Average interest rate | 3.8 | % | 3.8 | % | 3.8 | % | 3.8 | % | 3.8 | % | 3.8 | % | 3.8 | % | — | |||||||||
LIABILITIES | ||||||||||||||||||||||||
Lennar Homebuilding: | ||||||||||||||||||||||||
Senior notes and other debts payable: | ||||||||||||||||||||||||
Fixed rate | $ | 435.0 | 682.6 | 1,380.0 | 3.8 | 508.2 | 1,525.0 | 4,534.6 | 4,626.4 | |||||||||||||||
Average interest rate | 11.5 | % | 5.4 | % | 4.4 | % | 3.9 | % | 4.8 | % | 4.8 | % | 5.4 | % | — | |||||||||
Variable rate | $ | 43.3 | 12.6 | 3.1 | 0.6 | 11.1 | — | 70.7 | 72.6 | |||||||||||||||
Average interest rate | 3.4 | % | 3.7 | % | 3.8 | % | 2.6 | % | 2.6 | % | — | 3.3 | % | — | ||||||||||
Rialto: | ||||||||||||||||||||||||
Notes and other debts payable: | ||||||||||||||||||||||||
Fixed rate | $ | 30.4 | 1.2 | 351.0 | — | — | — | 382.6 | 425.2 | |||||||||||||||
Average interest rate | 6.8 | % | 7.0 | % | 7.0 | % | — | — | — | 6.9 | % | — | ||||||||||||
Variable rate | $ | 218.8 | 23.3 | — | — | — | — | 242.1 | 223.5 | |||||||||||||||
Average interest rate | 2.8 | % | 2.8 | % | — | — | — | — | 2.8 | % | — | |||||||||||||
Lennar Financial Services: | ||||||||||||||||||||||||
Notes and other debts payable: | ||||||||||||||||||||||||
Variable rate | $ | 1,077.0 | 0.1 | 0.1 | — | — | — | 1,077.2 | 1,077.2 | |||||||||||||||
Average interest rate | 2.9 | % | 4.0 | % | 4.0 | % | — | — | — | 2.9 | % | — |
Item 8. | Financial Statements and Supplementary Data. |
2016 (1) | 2015 (1) | |||||
(Dollars in thousands, except shares and per share amounts) | ||||||
ASSETS | ||||||
Lennar Homebuilding: | ||||||
Cash and cash equivalents | $ | |||||
Restricted cash | ||||||
Receivables, net | ||||||
Inventories: | ||||||
Finished homes and construction in progress | ||||||
Land and land under development | ||||||
Consolidated inventory not owned | ||||||
Total inventories | ||||||
Investments in unconsolidated entities | ||||||
Other assets | ||||||
Rialto | ||||||
Lennar Financial Services | ||||||
Lennar Multifamily | ||||||
Total assets | $ |
(1) |
2016 (2) | 2015 (2) | |||||
(Dollars in thousands, except shares and per share amounts) | ||||||
LIABILITIES AND EQUITY | ||||||
Lennar Homebuilding: | ||||||
Accounts payable | $ | |||||
Liabilities related to consolidated inventory not owned | ||||||
Senior notes and other debts payable | ||||||
Other liabilities | ||||||
Rialto | ||||||
Lennar Financial Services | ||||||
Lennar Multifamily | ||||||
Total liabilities | ||||||
Stockholders’ equity: | ||||||
Preferred stock | ||||||
Class A common stock of $0.10 par value per share; Authorized: 2016 and 2015 - 300,000,000 shares; Issued: 2016 - 204,089,447 shares; 2015 - 180,658,550 shares | ||||||
Class B common stock of $0.10 par value per share; Authorized: 2016 and 2015 - 90,000,000 shares, Issued: 2016 - 32,982,815 shares; 2015 - 32,982,815 shares | ||||||
Additional paid-in capital | ||||||
Retained earnings | ||||||
Treasury stock, at cost; 2016 - 917,449 shares of Class A common stock and 1,679,620 shares of Class B common stock; 2015 - 815,959 shares of Class A common stock and 1,679,620 shares of Class B common stock | ( | ) | ( | ) | ||
Accumulated other comprehensive income (loss) | ( | ) | ||||
Total stockholders’ equity | ||||||
Noncontrolling interests | ||||||
Total equity | ||||||
Total liabilities and equity | $ |
(2) |
2016 | 2015 | 2014 | |||||||
(Dollars in thousands, except per share amounts) | |||||||||
Revenues: | |||||||||
Lennar Homebuilding | $ | ||||||||
Lennar Financial Services | |||||||||
Rialto | |||||||||
Lennar Multifamily | |||||||||
Total revenues | |||||||||
Cost and expenses: | |||||||||
Lennar Homebuilding | |||||||||
Lennar Financial Services | |||||||||
Rialto | |||||||||
Lennar Multifamily | |||||||||
Corporate general and administrative | |||||||||
Total costs and expenses | |||||||||
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities | ( | ) | ( | ) | |||||
Lennar Homebuilding other income, net | |||||||||
Other interest expense | ( | ) | ( | ) | ( | ) | |||
Rialto equity in earnings from unconsolidated entities | |||||||||
Rialto other income (expense), net | ( | ) | |||||||
Lennar Multifamily equity in earnings from unconsolidated entities | |||||||||
Earnings before income taxes | |||||||||
Provision for income taxes | ( | ) | ( | ) | ( | ) | |||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | |||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | ( | ) | |||||||
Net earnings attributable to Lennar | $ | ||||||||
Other comprehensive income, net of tax: | |||||||||
Net unrealized gain (loss) on securities available-for-sale | ( | ) | ( | ) | |||||
Reclassification adjustments for gains included in net earnings | ( | ) | ( | ) | |||||
Other comprehensive income attributable to Lennar | $ | ||||||||
Other comprehensive income (loss) attributable to noncontrolling interests | $ | ( | ) | ||||||
Basic earnings per share | $ | ||||||||
Diluted earnings per share | $ |
2016 | 2015 | 2014 | |||||||
(Dollars in thousands, except per share amounts) | |||||||||
Class A common stock: | |||||||||
Beginning balance | $ | ||||||||
Employee stock and director plans | |||||||||
Retirement of treasury stock | ( | ) | |||||||
Conversion of convertible senior notes to shares of Class A common stock | |||||||||
Balance at November 30, | |||||||||
Class B common stock - Balance at November 30, | |||||||||
Additional paid-in capital: | |||||||||
Beginning balance | |||||||||
Employee stock and director plans | |||||||||
Retirement of treasury stock | ( | ) | |||||||
Tax benefit from employee stock plans, vesting of restricted stock and conversion of convertible senior notes | |||||||||
Amortization of restricted stock | |||||||||
Conversion of convertible senior notes to shares of Class A common stock | ( | ) | |||||||
Balance at November 30, | |||||||||
Retained earnings: | |||||||||
Beginning balance | |||||||||
Net earnings attributable to Lennar | |||||||||
Cash dividends - Class A common stock ($0.16 per share) | ( | ) | ( | ) | ( | ) | |||
Cash dividends - Class B common stock ($0.16 per share) | ( | ) | ( | ) | ( | ) | |||
Balance at November 30, | |||||||||
Treasury stock, at cost: | |||||||||
Beginning balance | ( | ) | ( | ) | ( | ) | |||
Employee stock and directors plans | ( | ) | ( | ) | ( | ) | |||
Retirement of treasury stock | — | ||||||||
Balance at November 30, | ( | ) | ( | ) | ( | ) | |||
Accumulated comprehensive other income (loss): | |||||||||
Beginning balance | |||||||||
Other comprehensive income (loss), net of tax | ( | ) | ( | ) | |||||
Balance at November 30, | ( | ) | |||||||
Total stockholders’ equity | |||||||||
Noncontrolling interests: | |||||||||
Beginning balance | |||||||||
Net earnings (loss) attributable to noncontrolling interests | ( | ) | |||||||
Receipts related to noncontrolling interests | |||||||||
Payments related to noncontrolling interests | ( | ) | ( | ) | ( | ) | |||
Non-cash distributions to noncontrolling interests | ( | ) | |||||||
Non-cash consolidations (deconsolidations), net | ( | ) | |||||||
Non-cash purchase or activity of noncontrolling interests | |||||||||
Balance at November 30, | |||||||||
Total equity | $ |
2016 | 2015 | 2014 | |||||||
(In thousands) | |||||||||
Cash flows from operating activities: | |||||||||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | $ | ||||||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | |||||||||
Depreciation and amortization | |||||||||
Amortization of discount/premium on debt, net | |||||||||
Equity in earnings from unconsolidated entities | ( | ) | ( | ) | ( | ) | |||
Distributions of earnings from unconsolidated entities | |||||||||
Share-based compensation expense | |||||||||
Excess tax benefits from share-based awards | ( | ) | ( | ) | ( | ) | |||
Deferred income tax expense (benefit) | ( | ) | |||||||
Loss (gain) on retirement of debt and notes payable | ( | ) | |||||||
Gain on sale of operating properties and equipment | ( | ) | ( | ) | |||||
Unrealized and realized gains on real estate owned | ( | ) | ( | ) | ( | ) | |||
Impairments of loans receivable and real estate owned | |||||||||
Valuation adjustments and write-offs of option deposits and pre-acquisition costs, other receivables and other assets | |||||||||
Changes in assets and liabilities: | |||||||||
Decrease (increase) in restricted cash | ( | ) | |||||||
Increase in receivables | ( | ) | ( | ) | ( | ) | |||
Increase in inventories, excluding valuation adjustments and write-offs of option deposits and pre-acquisition costs | ( | ) | ( | ) | ( | ) | |||
Increase in other assets | ( | ) | ( | ) | ( | ) | |||
Decrease (increase) in loans held-for-sale | ( | ) | ( | ) | |||||
Increase in accounts payable and other liabilities | |||||||||
Net cash provided by (used in) operating activities | ( | ) | ( | ) | |||||
Cash flows from investing activities: | |||||||||
Increase in restricted cash related to LOCs | |||||||||
Net additions to operating properties and equipment | ( | ) | ( | ) | ( | ) | |||
Proceeds from the sale of operating properties and equipment | |||||||||
Investments in and contributions to unconsolidated entities | ( | ) | ( | ) | ( | ) | |||
Distributions of capital from unconsolidated entities | |||||||||
Proceeds from sales of real estate owned | |||||||||
Improvements to real estate owned | ( | ) | ( | ) | ( | ) | |||
Receipts of principal payments on loans receivable and other | |||||||||
Purchases of loans receivable and real estate owned | ( | ) | ( | ) | |||||
Originations of loans receivable | ( | ) | ( | ) | ( | ) | |||
Purchase of investment carried at cost | ( | ) | |||||||
Purchases of commercial mortgage-backed securities bond | ( | ) | ( | ) | ( | ) | |||
Proceeds from sale of commercial mortgage-backed securities bond | |||||||||
Acquisitions, net of cash acquired | ( | ) | ( | ) | |||||
Purchases of Lennar Homebuilding investments available-for-sale | ( | ) | ( | ) | |||||
Proceeds from sales of Lennar Homebuilding investments available-for-sale | |||||||||
Decrease (increase) in Lennar Financial Services held-for-investment, net | ( | ) | |||||||
Purchases of Lennar Financial Services investment securities | ( | ) | ( | ) | ( | ) | |||
Proceeds from maturities/sales of Lennar Financial Services investment securities | |||||||||
Net cash (used in) provided by investing activities | $ | ( | ) | ( | ) | ||||
Cash flows from financing activities: | |||||||||
Net borrowings under warehouse facilities | $ | ||||||||
Proceeds from senior notes | |||||||||
Debt issuance costs | ( | ) | ( | ) | ( | ) | |||
Redemption of senior notes | ( | ) | ( | ) | ( | ) | |||
Conversions and exchanges on convertible senior notes | ( | ) | ( | ) | |||||
Proceeds from Rialto structured notes | |||||||||
Principal payments on Rialto notes payable including structured notes | ( | ) | ( | ) | ( | ) | |||
Proceeds from other borrowings | |||||||||
Principal payments on other borrowings | ( | ) | ( | ) | ( | ) | |||
Exercise of land option contracts from an unconsolidated land investment venture | ( | ) | |||||||
Receipts related to noncontrolling interests | |||||||||
Payments related to noncontrolling interests | ( | ) | ( | ) | ( | ) | |||
Excess tax benefits from share-based awards | |||||||||
Common stock: | |||||||||
Issuances | |||||||||
Repurchases | ( | ) | ( | ) | ( | ) | |||
Dividends | ( | ) | ( | ) | ( | ) | |||
Net cash (used in) provided by financing activities | ( | ) | |||||||
Net increase (decrease) in cash and cash equivalents | ( | ) | |||||||
Cash and cash equivalents at beginning of year | |||||||||
Cash and cash equivalents at end of year | $ | ||||||||
Summary of cash and cash equivalents: | |||||||||
Lennar Homebuilding | $ | ||||||||
Rialto | |||||||||
Lennar Financial Services | |||||||||
Lennar Multifamily | |||||||||
$ | |||||||||
Supplemental disclosures of cash flow information: | |||||||||
Cash paid for interest, net of amounts capitalized | $ | ||||||||
Cash paid for income taxes, net | $ | ||||||||
Supplemental disclosures of non-cash investing and financing activities: | |||||||||
Lennar Homebuilding and Lennar Multifamily: | |||||||||
Purchases of inventories, land under development and other assets financed by sellers | $ | ||||||||
Net non-cash contributions to unconsolidated entities | $ | ||||||||
Conversion of convertible senior notes to equity | $ | ||||||||
Inventory acquired in satisfaction of other assets including investments available-for-sale | $ | ||||||||
Inventory acquired in partner buyout | $ | ||||||||
Non-cash sale of operating properties and equipment | $ | ( | ) | ||||||
Rialto: | |||||||||
Real estate owned acquired in satisfaction/partial satisfaction of loans receivable | $ | ||||||||
Non-cash acquisition of Servicer Provider | $ | ||||||||
Lennar Financial Services: | |||||||||
Purchase of mortgage servicing rights financed by seller | $ | ||||||||
Consolidation/deconsolidation of unconsolidated/consolidated entities, net: | |||||||||
Inventories | $ | ||||||||
Operating properties and equipment and other assets | $ | ( | ) | ( | ) | ||||
Investments in unconsolidated entities | $ | ( | ) | ( | ) | ||||
Liabilities related to consolidated inventory not owned | $ | ( | ) | ||||||
Other liabilities | $ | ||||||||
Noncontrolling interests | $ | ( | ) | ( | ) |
Years ended November 30, | |||||||
2015 | 2014 | ||||||
Unobservable inputs | Range | ||||||
Average selling price | $ | - | $ | $ | |||
Absorption rate per quarter (homes) | - | ||||||
Discount rate | % | - |
Years Ended November 30, | |||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||
Interest expense in costs of homes sold | $ | ||||||||
Interest expense in costs of land sold | |||||||||
Other interest expense | |||||||||
Total interest expense | $ |
November 30, | ||||||
(In thousands) | 2016 | 2015 | ||||
Warranty reserve, beginning of year | $ | |||||
Warranties issued | ||||||
Adjustments to pre-existing warranties from changes in estimates (1) | ||||||
Payments | ( | ) | ( | ) | ||
Warranty reserve, end of year | $ |
(1) |
November 30, | ||||||
(In thousands) | 2016 | 2015 | ||||
Loan origination liabilities, beginning of year | $ | |||||
Provision for losses | ||||||
Adjustments to pre-existing provisions for losses from changes in estimates (1) | ||||||
Payments/settlements | ( | ) | ( | ) | ||
Loan origination liabilities, end of year | $ |
(1) | The adjustments to pre-existing provisions for losses from changes in estimates for the years ended November 30, 2016 and 2015 primarily related to an adjustment for additional repurchase requests that were received beyond the estimated provision that was recorded. |
• | Rialto/Lennar owns |
• | Rialto/Lennar has a management/servicer contract under which the Company earns a |
• | Rialto/Lennar has guaranteed, as the servicer, its obligations under the servicing agreement up to $ |
• | The Company determined that Rialto’s general partner interest and all the limited partners’ interests qualify as equity investment at risk. |
• | Based on the capital structure of Fund I, Fund II, Fund III, Mezzanine Fund, and the RCP (100% capitalized via equity contributions), the Company was able to conclude that the equity investment at risk was sufficient to allow Fund I, Fund II, Fund III, Mezzanine Fund and the RCP to finance its activities without additional subordinated financial support. |
• | The general partner and the limited partners in Fund I, Fund II, Fund III, Mezzanine Fund and the RCP, collectively, have full decision-making ability as they collectively have the power to direct the activities of Fund I, Fund II, Fund III, Mezzanine Fund and the RCP, since Rialto, in addition to being a general partner with a substantive equity investment in Fund I, Fund II, Fund III, Mezzanine Fund and the RCP, also provides services to Fund I, Fund II, Fund III, Mezzanine Fund and the RCP, under a management agreement and an investment agreement, which are not separable from Rialto’s general partnership interest. |
• | As a result of all these factors, the Company has concluded that the power to direct the activities of Fund I, Fund II, Fund III, Mezzanine Fund, and the RCP reside in its general partnership interest and thus with the holders of the equity investment at risk. |
• | In addition, there are no guaranteed returns provided to the equity investors and the equity contributions are fully subjected to Fund I, Fund II, Fund III, Mezzanine Fund and the RCP's operational results, thus the equity investors absorb the expected negative and positive variability relative to Fund I, Fund II, Fund III, Mezzanine Fund and the RCP. |
• | Finally, substantially all of the activities of Fund I, Fund II, Fund III, Mezzanine Fund and the RCP are not conducted on behalf of any individual investor or related group that has disproportionately few voting rights (i.e., on behalf of any individual limited partner). |
(1) | Homebuilding East |
(2) | Homebuilding Central |
(3) | Homebuilding West |
(4) | Lennar Financial Services |
(5) | Rialto |
(6) | Lennar Multifamily |
November 30, | |||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||
Assets: | |||||||||
Homebuilding East | $ | ||||||||
Homebuilding Central | |||||||||
Homebuilding West | |||||||||
Homebuilding Other | |||||||||
Rialto | |||||||||
Lennar Financial Services | |||||||||
Lennar Multifamily | |||||||||
Corporate and unallocated | |||||||||
Total assets | $ | ||||||||
Lennar Homebuilding investments in unconsolidated entities: | |||||||||
Homebuilding East | $ | ||||||||
Homebuilding Central | |||||||||
Homebuilding West | |||||||||
Homebuilding Other | |||||||||
Total Lennar Homebuilding investments in unconsolidated entities | $ | ||||||||
Rialto investments in unconsolidated entities | $ | ||||||||
Lennar Multifamily investments in unconsolidated entities | $ | ||||||||
Rialto goodwill | $ | ||||||||
Lennar Financial Services goodwill | $ |
Years Ended November 30, | |||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||
Revenues: | |||||||||
Homebuilding East | $ | ||||||||
Homebuilding Central | |||||||||
Homebuilding West | |||||||||
Homebuilding Other | |||||||||
Lennar Financial Services | |||||||||
Rialto | |||||||||
Lennar Multifamily | |||||||||
Total revenues (1) | $ | ||||||||
Operating earnings (loss): | |||||||||
Homebuilding East | $ | ||||||||
Homebuilding Central | |||||||||
Homebuilding West (2) | |||||||||
Homebuilding Other | |||||||||
Lennar Financial Services | |||||||||
Rialto (3) | ( | ) | |||||||
Lennar Multifamily (4) | ( | ) | ( | ) | |||||
Total operating earnings | |||||||||
Corporate general and administrative expenses | |||||||||
Earnings before income taxes | $ |
(1) | Total revenues were net of sales incentives of $ |
(2) | For the year ended November 30, 2016, Homebuilding West's operating earnings included an equity in loss from unconsolidated entities of ($ |
(3) | For the year ended November 30, 2016, Rialto's operating loss included a $ |
(4) | For the year ended November 30, 2016, Lennar Multifamily's operating earnings included $ |
Years Ended November 30, | |||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||
Lennar Homebuilding interest expense: | |||||||||
Homebuilding East | $ | ||||||||
Homebuilding Central | |||||||||
Homebuilding West | |||||||||
Homebuilding Other | |||||||||
Total Lennar Homebuilding interest expense | $ | ||||||||
Lennar Financial Services interest income, net | $ | ||||||||
Rialto interest expense | $ | ||||||||
Depreciation and amortization: | |||||||||
Homebuilding East | $ | ||||||||
Homebuilding Central | |||||||||
Homebuilding West | |||||||||
Homebuilding Other | |||||||||
Lennar Financial Services | |||||||||
Rialto | |||||||||
Lennar Multifamily | |||||||||
Corporate and unallocated | |||||||||
Total depreciation and amortization | $ | ||||||||
Net additions to (disposals of) operating properties and equipment: | |||||||||
Homebuilding East (1) | $ | ( | ) | ( | ) | ||||
Homebuilding Central | ( | ) | |||||||
Homebuilding West (2) | ( | ) | |||||||
Homebuilding Other (3) | ( | ) | |||||||
Lennar Financial Services | |||||||||
Rialto | |||||||||
Lennar Multifamily | |||||||||
Corporate and unallocated | |||||||||
Total net additions (disposals of) operating properties and equipment | $ | ( | ) | ( | ) | ||||
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities: | |||||||||
Homebuilding East | $ | ( | ) | ||||||
Homebuilding Central | ( | ) | |||||||
Homebuilding West (4) | ( | ) | ( | ) | |||||
Homebuilding Other | ( | ) | |||||||
Total Lennar Homebuilding equity in earnings (loss) from unconsolidated entities | $ | ( | ) | ( | ) | ||||
Rialto equity in earnings from unconsolidated entities | $ | ||||||||
Lennar Multifamily equity in earnings from unconsolidated entities | $ |
(1) | For the year ended November 30, 2014, net disposals of operating properties and equipment included the sale of an operating property with a basis of $ |
(2) | For the year ended November 30, 2015, net disposals of operating properties and equipment included the sale of an operating property with a basis of $ |
(3) | For the year ended November 30, 2015, net disposals of operating properties and equipment included the sale of an operating property with a basis of $ |
(4) | For the year ended November 30, 2016, equity in loss included the Company's share of costs associated with the FivePoint combination (described in Note 4) and operational net losses from the new FivePoint unconsolidated entity, totaling $ |
November 30, | ||||||
(In thousands) | 2016 | 2015 | ||||
Accounts receivable | $ | |||||
Mortgage and notes receivable | ||||||
Income tax receivables | ||||||
Allowance for doubtful accounts | ( | ) | ( | ) | ||
$ |
Statements of Operations | |||||||||
Years Ended November 30, | |||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||
Revenues | $ | ||||||||
Costs and expenses | |||||||||
Other income | |||||||||
Net earnings (loss) of unconsolidated entities | $ | ( | ) | ( | ) | ||||
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities | $ | ( | ) | ( | ) |
Balance Sheets | ||||||
November 30, | ||||||
(In thousands) | 2016 | 2015 | ||||
Assets: | ||||||
Cash and cash equivalents | $ | |||||
Inventories | ||||||
Other assets | ||||||
$ | ||||||
Liabilities and equity: | ||||||
Accounts payable and other liabilities | $ | |||||
Debt | ||||||
Equity | ||||||
$ |
November 30, | ||||||
(Dollars in thousands) | 2016 | 2015 | ||||
Non-recourse bank debt and other debt (partner’s share of several recourse) | $ | |||||
Non-recourse land seller debt and other debt (1) | ||||||
Non-recourse debt with completion guarantees | ||||||
Non-recourse debt without completion guarantees | ||||||
Non-recourse debt to the Company | ||||||
The Company’s maximum recourse exposure (2) | ||||||
Total debt | $ | |||||
The Company’s maximum recourse exposure as a % of total JV debt | % | % |
(1) | Non-recourse land seller debt and other debt as of both November 30, 2016 and 2015, included a $ |
(2) |
November 30, | ||||||
(In thousands) | 2016 | 2015 | ||||
Operating properties (1) | $ | |||||
Leasehold improvements | ||||||
Furniture, fixtures and equipment | ||||||
Accumulated depreciation and amortization | ( | ) | ( | ) | ||
$ |
(1) |
November 30, | ||||||
(Dollars in thousands) | 2016 | 2015 | ||||
12.25% senior notes due 2017 | $ | |||||
4.75% senior notes due December 2017 | ||||||
6.95% senior notes due 2018 | ||||||
4.125% senior notes due December 2018 | ||||||
4.500% senior notes due 2019 | ||||||
4.50% senior notes due 2019 | ||||||
4.750% senior notes due 2021 | ||||||
4.750% senior notes due 2022 | ||||||
4.875% senior notes due December 2023 | ||||||
4.750% senior notes due 2025 | ||||||
6.50% senior notes due 2016 | ||||||
2.75% convertible senior notes due 2020 | ||||||
3.25% convertible senior notes due 2021 | ||||||
Mortgage notes on land and other debt | ||||||
$ |
Senior Notes Outstanding (1) | Principal Amount | Net Proceeds (2) | Price | Dates Issued | |||||||||
(Dollars in thousands) | |||||||||||||
12.25% senior notes due 2017 | $ | $ | % | April 2009 | |||||||||
4.75% senior notes due December 2017 | % | July 2012, August 2012 | |||||||||||
6.95% senior notes due 2018 | % | May 2010 | |||||||||||
4.125% senior notes due December 2018 | % | February 2013 | |||||||||||
4.500% senior notes due 2019 | (3) | February 2014 | |||||||||||
4.50% senior notes due 2019 | (4) | November 2014, February 2015 | |||||||||||
4.750% senior notes due 2021 | % | March 2016 | |||||||||||
4.750% senior notes due 2022 | (5) | October 2012, February 2013, April 2013 | |||||||||||
4.875% senior notes due December 2023 | % | November 2015 | |||||||||||
4.750% senior notes due 2025 | % | April 2015 |
(1) | Interest is payable semi-annually for each of the series of senior notes. The senior notes are unsecured and unsubordinated, but are guaranteed by substantially all of the Company's 100% owned homebuilding subsidiaries. |
(2) | The Company generally uses the net proceeds for working capital and general corporate purposes, which can include the repayment or repurchase of other outstanding senior notes. |
(3) | The Company issued $ |
(4) | The Company issued $ |
(5) |
(In thousands) | Debt Maturities | ||
2017 | $ | ||
2018 | |||
2019 | |||
2020 | |||
2021 | |||
Thereafter |
November 30, | ||||||
(In thousands) | 2016 | 2015 | ||||
Assets: | ||||||
Cash and cash equivalents | $ | |||||
Restricted cash | ||||||
Receivables, net (1) | ||||||
Loans held-for-sale (2) | ||||||
Loans held-for-investment, net | ||||||
Investments held-to-maturity | ||||||
Investments available-for-sale (3) | ||||||
Goodwill | ||||||
Other (4) | ||||||
$ | ||||||
Liabilities: | ||||||
Notes and other debts payable | $ | |||||
Other (5) | ||||||
$ |
(1) | Receivables, net, primarily related to loans sold to investors for which the Company had not yet been paid as of November 30, 2016 and 2015, respectively. |
(2) | Loans held-for-sale related to unsold loans carried at fair value. |
(3) | Investments available-for-sale are carried at fair value with changes in fair value recorded as a component of accumulated other comprehensive income (loss). |
(4) | As of November 30, 2016 and 2015, other assets included mortgage loan commitments carried at fair value of $ |
(5) |
(In thousands) | Maximum Aggregate Commitment | ||
364-day warehouse repurchase facility that matures December 2016 (1)(2) | $ | ||
364-day warehouse repurchase facility that matures June 2017 (3) | |||
364-day warehouse repurchase facility that matures September 2017 | |||
Total | $ |
(1) | Maximum aggregate commitment includes an uncommitted amount of $ |
(2) | Subsequent to November 30, 2016, the warehouse repurchase facility maturity date was extended to December 2017. |
(3) |
November 30, | ||||||
(In thousands) | 2016 | 2015 | ||||
Assets: | ||||||
Cash and cash equivalents | $ | |||||
Restricted cash | ||||||
Receivables, net (1) | ||||||
Loans held-for-sale (2) | ||||||
Loans receivable, net | ||||||
Real estate owned - held-for-sale | ||||||
Real estate owned - held-and-used, net | ||||||
Investments in unconsolidated entities | ||||||
Investments held-to-maturity | ||||||
Other | ||||||
$ | ||||||
Liabilities: | ||||||
Notes and other debts payable | $ | |||||
Other | ||||||
$ |
(1) | Receivables, net primarily related to loans sold but not settled as of November 30, 2016 and 2015. |
(2) |
Years Ended November 30, | |||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||
Realized gains on REO sales, net | $ | ||||||||
Unrealized losses on transfer of loans receivable to REO and impairments, net | ( | ) | ( | ) | ( | ) | |||
REO and other expenses | ( | ) | ( | ) | ( | ) | |||
Rental and other income (1) | |||||||||
Rialto other income (expense), net | $ | ( | ) |
(1) |
November 30, | ||||||
(In thousands) | 2016 | 2015 | ||||
Nonaccrual loans: FDIC and Bank Portfolios | $ | |||||
Accrual loans | ||||||
Loans receivable, net | $ |
Recorded Investment | ||||||||||||
(In thousands) | Unpaid Principal Balance | With Allowance | Without Allowance | Total Recorded Investment | ||||||||
Land | $ | |||||||||||
Single family homes | ||||||||||||
Commercial properties | ||||||||||||
Other | ||||||||||||
Nonaccrual loans | $ |
Recorded Investment | ||||||||||||
(In thousands) | Unpaid Principal Balance | With Allowance | Without Allowance | Total Recorded Investment | ||||||||
Land | $ | |||||||||||
Single family homes | ||||||||||||
Commercial properties | ||||||||||||
Other | ||||||||||||
Nonaccrual loans | $ |
November 30, | ||||||
(In thousands) | 2016 | 2015 | ||||
Allowance on nonaccrual loans, beginning of year | $ | |||||
Provision for loan losses | ||||||
Charge-offs | ( | ) | ( | ) | ||
Allowance on nonaccrual loans, end of year | $ |
November 30, | ||||||
(In thousands) | 2016 | 2015 | ||||
REO - held-for-sale, beginning of year | $ | |||||
Improvements | ||||||
Sales | ( | ) | ( | ) | ||
Impairments and unrealized losses | ( | ) | ( | ) | ||
Transfers to/from held-and-used, net (1) | ||||||
REO - held-for-sale, end of year | $ |
November 30, | ||||||
(In thousands) | 2016 | 2015 | ||||
REO - held-and-used, net, beginning of year | $ | |||||
Additions | ||||||
Improvements | ( | ) | ||||
Impairments | ( | ) | ( | ) | ||
Depreciation | ( | ) | ( | ) | ||
Transfers to held-for-sale (1) | ( | ) | ( | ) | ||
Other | ( | ) | ||||
REO - held-and-used, net, end of year | $ |
(1) |
(In thousands) | Maximum Aggregate Commitment | ||
364-day warehouse repurchase facility that matures April 2017 (1)(2) | $ | ||
364-day warehouse repurchase facility that matures January 2017 (1) | |||
Warehouse repurchase facility that matures December 2017 (1) | |||
Warehouse repurchase facility that matures August 2018 (two - one year extensions) (3) | |||
Totals | $ |
(1) | RMF uses these facilities to finance its loan origination and securitization activities. |
(2) | The warehouse repurchase facility has the option of an additional six month extension. |
(3) |
November 30, 2016 | November 30, 2016 | November 30, 2015 | ||||||||||||||||||||||
(Dollars in thousands) | Inception Year | Equity Commitments | Equity Commitments Called | Commitment to Fund by the Company | Funds Contributed by the Company | Investment | ||||||||||||||||||
Rialto Real Estate Fund, LP | 2010 | $ | $ | $ | $ | $ | ||||||||||||||||||
Rialto Real Estate Fund II, LP | 2012 | |||||||||||||||||||||||
Rialto Mezzanine Partners Fund, LP | 2013 | |||||||||||||||||||||||
Rialto Capital CMBS Funds | 2014 | |||||||||||||||||||||||
Rialto Real Estate Fund III | 2015 | |||||||||||||||||||||||
Rialto Credit Partnership, LP | 2016 | |||||||||||||||||||||||
Other investments | ||||||||||||||||||||||||
$ |
Years Ended November 30, | |||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||
Rialto Real Estate Fund, LP | $ | ||||||||
Rialto Real Estate Fund II, LP | |||||||||
Rialto Mezzanine Partners Fund, LP | |||||||||
Rialto Capital CMBS Funds | |||||||||
Rialto Real Estate Fund III (1) | ( | ) | |||||||
Rialto Credit Partnership, LP | |||||||||
Other investments | ( | ) | |||||||
Rialto equity in earnings from unconsolidated entities | $ |
(1) |
Balance Sheets | ||||||
November 30, | ||||||
(In thousands) | 2016 | 2015 | ||||
Assets: | ||||||
Cash and cash equivalents | $ | |||||
Loans receivable | ||||||
Real estate owned | ||||||
Investment securities | ||||||
Investments in partnerships | ||||||
Other assets | ||||||
$ | ||||||
Liabilities and equity: | ||||||
Accounts payable and other liabilities | $ | |||||
Notes payable | ||||||
Equity | ||||||
$ |
Statements of Operations | |||||||||
Years Ended November 30, | |||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||
Revenues | $ | ||||||||
Costs and expenses | |||||||||
Other income, net (1) | |||||||||
Net earnings of unconsolidated entities | $ | ||||||||
Rialto equity in earnings from unconsolidated entities | $ |
(1) |
November 30, | ||||||
(In thousands) | 2016 | 2015 | ||||
Assets: | ||||||
Cash and cash equivalents | $ | |||||
Receivables (1) | ||||||
Land under development | ||||||
Consolidated inventory not owned | ||||||
Investments in unconsolidated entities | ||||||
Other assets | ||||||
$ | ||||||
Liabilities: | ||||||
Accounts payable and other liabilities | $ | |||||
Liabilities related to consolidated inventory not owned | ||||||
$ |
(1) |
Balance Sheets | ||||||
November 30, | ||||||
(In thousands) | 2016 | 2015 | ||||
Assets: | ||||||
Cash and cash equivalents | $ | |||||
Operating properties and equipment | ||||||
Other assets | ||||||
$ | ||||||
Liabilities and equity: | ||||||
Accounts payable and other liabilities | $ | |||||
Notes payable | ||||||
Equity | ||||||
$ |
Statements of Operations | |||||||||
Years Ended November 30, | |||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||
Revenues | $ | ||||||||
Costs and expenses | |||||||||
Other income, net | |||||||||
Net earnings of unconsolidated entities | $ | ||||||||
Lennar Multifamily equity in earnings from unconsolidated entities (1) | $ |
(1) |
Years Ended November 30, | |||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||
Current: | |||||||||
Federal | $ | ( | ) | ( | ) | ( | ) | ||
State | ( | ) | ( | ) | |||||
$ | ( | ) | ( | ) | ( | ) | |||
Deferred: | |||||||||
Federal | $ | ( | ) | ( | ) | ||||
State | ( | ) | ( | ) | ( | ) | |||
( | ) | ( | ) | ||||||
$ | ( | ) | ( | ) | ( | ) |
Percentage of Pretax Income | ||||||||
2016 | 2015 | 2014 | ||||||
Statutory rate | % | % | % | |||||
State income taxes, net of federal income tax benefit | ||||||||
Domestic production activities deduction | ( | ) | ( | ) | ( | ) | ||
Tax reserves and interest expense | ( | ) | ||||||
Deferred tax asset valuation reversal | ( | ) | ( | ) | ( | ) | ||
State net operating loss adjustment (1) | ( | ) | ||||||
Tax credits | ( | ) | ( | ) | ( | ) | ||
Other | ( | ) | ( | ) | ||||
Effective rate | % | % | % |
(1) |
November 30, | ||||||
(In thousands) | 2016 | 2015 | ||||
Deferred tax assets: | ||||||
Inventory valuation adjustments | $ | |||||
Reserves and accruals | ||||||
Net operating loss carryforwards | ||||||
Rialto investments in partnerships | ||||||
Capitalized expenses | ||||||
Investments in unconsolidated entities | ||||||
Other assets | ||||||
Total deferred tax assets | ||||||
Valuation allowance | ( | ) | ( | ) | ||
Total deferred tax assets after valuation allowance | ||||||
Deferred tax liabilities: | ||||||
Capitalized expenses | ||||||
Deferred income | ||||||
Convertible debt basis difference | ||||||
Rialto investments in partnerships | ||||||
Other | ||||||
Total deferred tax liabilities | ||||||
Net deferred tax assets | $ |
November 30, | ||||||
(In thousands) | 2016 | 2015 | ||||
Net deferred tax assets (liabilities): (1) | ||||||
Lennar Homebuilding | $ | |||||
Rialto | ||||||
Lennar Financial Services | ||||||
Lennar Multifamily | ( | ) | ||||
Net deferred tax assets | $ |
(1) |
Years Ended November 30, | |||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||
Gross unrecognized tax benefits, beginning of year | $ | ||||||||
Increase due to tax positions taken during prior period (1) | |||||||||
Decreases due to settlements with taxing authorities (2) | ( | ) | |||||||
Gross unrecognized tax benefits, end of year | $ |
(1) | Increased the Company's effective tax rate for the year ended November 30, 2015 from |
(2) |
November 30, | ||||||
(In thousands) | 2016 | 2015 | ||||
Accrued interest and penalties, beginning of the year | $ | |||||
Accrual of interest and penalties (primarily related to federal and state audits) | ||||||
Reduction of interest and penalties (1) | ( | ) | ( | ) | ||
Accrued interest and penalties, end of the year | $ |
(1) |
Years Ended November 30, | |||||||||
(In thousands, except per share amounts) | 2016 | 2015 | 2014 | ||||||
Numerator: | |||||||||
Net earnings attributable to Lennar | $ | ||||||||
Less: distributed earnings allocated to nonvested shares | |||||||||
Less: undistributed earnings allocated to nonvested shares | |||||||||
Numerator for basic earnings per share | |||||||||
Less: net amount attributable to noncontrolling interests in Rialto's Carried Interest Incentive Plan (1) | |||||||||
Plus: interest on 3.25% convertible senior notes due 2021 | |||||||||
Plus: undistributed earnings allocated to convertible shares | |||||||||
Less: undistributed earnings reallocated to convertible shares | |||||||||
Numerator for diluted earnings per share | $ | ||||||||
Denominator: | |||||||||
Denominator for basic earnings per share - weighted average common shares outstanding | |||||||||
Effect of dilutive securities: | |||||||||
Share-based payments | |||||||||
Convertible senior notes | |||||||||
Denominator for diluted earnings per share - weighted average common shares outstanding | |||||||||
Basic earnings per share | $ | ||||||||
Diluted earnings per share | $ |
(1) |
Years ended November 30, | |||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||
Nonvested shares | $ | ||||||||
Stock options (1) | |||||||||
Total compensation expense for share-based awards | $ |
(1) |
Shares | Weighted Average Grant Date Fair Value | |||||
Nonvested shares at November 30, 2015 | $ | |||||
Grants | $ | |||||
Vested | ( | ) | $ | |||
Forfeited | ( | ) | $ | |||
Nonvested shares at November 30, 2016 | $ |
November 30, | ||||||||||||||
2016 | 2015 | |||||||||||||
Fair Value | Carrying | Fair | Carrying | Fair | ||||||||||
(In thousands) | Hierarchy | Amount | Value | Amount | Value | |||||||||
ASSETS | ||||||||||||||
Rialto: | ||||||||||||||
Loans receivable, net | Level 3 | $ | ||||||||||||
Investments held-to-maturity | Level 3 | $ | ||||||||||||
Lennar Financial Services: | ||||||||||||||
Loans held-for-investment, net | Level 3 | $ | ||||||||||||
Investments held-to-maturity | Level 2 | $ | ||||||||||||
LIABILITIES | ||||||||||||||
Lennar Homebuilding senior notes and other debts payable | Level 2 | $ | ||||||||||||
Rialto notes and other debts payable | Level 2 | $ | ||||||||||||
Lennar Financial Services notes and other debts payable | Level 2 | $ |
(In thousands) | Fair Value Hierarchy | Fair Value at November 30, 2016 | Fair Value at November 30, 2015 | |||||
Rialto Financial Assets: | ||||||||
Loans held-for-sale (1) | Level 3 | $ | ||||||
Credit default swaps (2) | Level 2 | $ | ||||||
Rialto Financial Liabilities: | ||||||||
Interest rate swaps and swap futures (3) | Level 1 | $ | ||||||
Lennar Financial Services Assets: | ||||||||
Loans held-for-sale (4) | Level 2 | $ | ||||||
Investments available-for-sale | Level 1 | $ | ||||||
Mortgage loan commitments | Level 2 | $ | ||||||
Forward contracts | Level 2 | $ | ||||||
Mortgage servicing rights | Level 3 | $ |
(1) | The aggregate fair value of Rialto loans held-for-sale of $ |
(2) | Rialto's credit default swaps are included within Rialto's other assets. |
(3) | Rialto's interest rate swaps and swap futures are included within Rialto's other liabilities. |
(4) |
Years Ended November 30, | |||||||||
(In thousands) | 2016 | 2015 | 2014 | ||||||
Changes in fair value included in Lennar Financial Services revenues: | |||||||||
Loans held-for-sale | $ | ( | ) | ( | ) | ||||
Mortgage loan commitments | $ | ( | ) | ||||||
Forward contracts | $ | ( | ) | ||||||
Investments available-for-sale | $ | ||||||||
Changes in fair value included in Rialto revenues: | |||||||||
Financial Assets: | |||||||||
Credit default swaps | $ | ( | ) | ( | ) | ||||
Financial Liabilities: | |||||||||
Interest rate swaps and swap futures | $ | ( | ) | ||||||
Changes in fair value included in other comprehensive income, net of tax: | |||||||||
Lennar Financial Services investments available-for-sale | $ | ( | ) | ( | ) |
Years Ended November 30, | ||||||||||||
2016 | 2015 | |||||||||||
Lennar Financial Services | Rialto | Lennar Financial Services | Rialto | |||||||||
(In thousands) | Mortgage servicing rights | Loans held-for-sale | Mortgage servicing rights | Loans held-for-sale | ||||||||
Beginning of year | $ | |||||||||||
Purchases/loan originations | ||||||||||||
Sales/loan originations sold, including those not settled | ( | ) | ( | ) | ||||||||
Disposals/settlements | ( | ) | ( | ) | ||||||||
Changes in fair value (1) | ( | ) | ( | ) | ( | ) | ||||||
Interest and principal paydowns | ( | ) | ||||||||||
End of year | $ |
(1) |
Years Ended November 30, | |||||||||||||||||||||||||||||
2016 | 2015 | 2014 | |||||||||||||||||||||||||||
(In thousands) | Fair Value Hierarchy | Carrying Value | Fair Value | Total Gains (Losses) (1) | Carrying Value | Fair Value | Total Gains (Losses) (1) | Carrying Value | Fair Value | Total Losses (1) | |||||||||||||||||||
Financial assets | |||||||||||||||||||||||||||||
Rialto: | |||||||||||||||||||||||||||||
Impaired loans receivable | Level 3 | $ | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Non-financial assets | |||||||||||||||||||||||||||||
Lennar Homebuilding: | |||||||||||||||||||||||||||||
Finished homes and construction in progress (2) | Level 3 | $ | ( | ) | ( | ) | |||||||||||||||||||||||
Land and land under development (2) | Level 3 | $ | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Rialto: | |||||||||||||||||||||||||||||
REO - held-for-sale (3) | |||||||||||||||||||||||||||||
Upon acquisition/transfer | Level 3 | $ | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Upon management periodic valuations | Level 3 | $ | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
REO - held-and-used, net (4) | |||||||||||||||||||||||||||||
Upon acquisition/transfer | Level 3 | $ | ( | ) | |||||||||||||||||||||||||
Upon management periodic valuations | Level 3 | $ | ( | ) | ( | ) | ( | ) |
(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 years ended November 30, 2016, 2015 and 2014. |
(2) | Valuation adjustments were included in Lennar Homebuilding costs and expenses in the Company's consolidated statement of operations for the years ended November 30, 2016, 2015 and 2014. |
(3) | REO held-for-sale assets are initially recorded at fair value less estimated costs to sell at the time of the transfer or acquisition through, or in lieu of, loan foreclosure. The fair value of REO held-for-sale is based upon appraised value at the time of foreclosure or management's best estimate. In addition, management periodically performs valuations of its REO held-for-sale. The gains (losses) upon the transfer or acquisition of REO and impairments were included in Rialto other income (expense), net, in the Company’s consolidated statement of operations for the years ended November 30, 2016, 2015 and 2014. |
(4) |
November 30, | ||||||
(In thousands) | 2016 | 2015 | ||||
Lennar Homebuilding | $ | |||||
Rialto | $ | |||||
Lennar Multifamily | $ |
November 30, 2016 | ||||||
(In thousands) | Investments in Unconsolidated VIEs | Lennar’s Maximum Exposure to Loss | ||||
Lennar Homebuilding (1) | $ | |||||
Rialto (2) | ||||||
Lennar Multifamily (3) | ||||||
$ |
November 30, 2015 | ||||||
(In thousands) | Investments in Unconsolidated VIEs | Lennar’s Maximum Exposure to Loss | ||||
Lennar Homebuilding (1) | $ | |||||
Rialto (2) | ||||||
Lennar Multifamily (3) | ||||||
$ |
(1) | At November 30, 2016, the maximum exposure to loss of Lennar Homebuilding’s investments in unconsolidated VIEs was limited to its investments in the unconsolidated VIEs, except with regard to a $ |
(2) | At both November 30, 2016 and 2015, the maximum recourse exposure to loss of Rialto’s investments in unconsolidated VIEs was limited to its investments in the unconsolidated entities VIEs. At November 30, 2016 and 2015, investments in unconsolidated VIEs and Lennar’s maximum exposure to loss included $ |
(3) |
(In thousands) | Lease Payments | ||
2017 | $ | ||
2018 | |||
2019 | |||
2020 | |||
2021 | |||
Thereafter |
Consolidating Balance Sheet November 30, 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 | $ | ||||||||||||||
Inventories | |||||||||||||||
Investments in unconsolidated entities | |||||||||||||||
Other assets | ( | ) | |||||||||||||
Investments in subsidiaries | ( | ) | |||||||||||||
Intercompany | ( | ) | |||||||||||||
( | ) | ||||||||||||||
Rialto | |||||||||||||||
Lennar Financial Services loans held-for-sale | — | — | |||||||||||||
Lennar Financial Services all other assets | ( | ) | |||||||||||||
Lennar Multifamily | |||||||||||||||
Total assets | $ | ( | ) | ||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||
Lennar Homebuilding: | |||||||||||||||
Accounts payable and other liabilities | $ | ( | ) | ||||||||||||
Liabilities related to consolidated inventory not owned | |||||||||||||||
Senior notes and other debts payable | |||||||||||||||
Intercompany | ( | ) | |||||||||||||
( | ) | ||||||||||||||
Rialto | |||||||||||||||
Lennar Financial Services | |||||||||||||||
Lennar Multifamily | |||||||||||||||
Total liabilities | $ | ( | ) | ||||||||||||
Stockholders’ equity | ( | ) | |||||||||||||
Noncontrolling interests | |||||||||||||||
Total equity | ( | ) | |||||||||||||
Total liabilities and equity | $ | ( | ) |
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 | $ | ||||||||||||||
Inventories | |||||||||||||||
Investments in unconsolidated entities | |||||||||||||||
Other assets | |||||||||||||||
Investments in subsidiaries | ( | ) | |||||||||||||
Intercompany | ( | ) | |||||||||||||
( | ) | ||||||||||||||
Rialto | |||||||||||||||
Lennar Financial Services loans held-for-sale | — | — | |||||||||||||
Lennar Financial Services all other assets | ( | ) | |||||||||||||
Lennar Multifamily | ( | ) | |||||||||||||
Total assets | $ | ( | ) | ||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||
Lennar Homebuilding: | |||||||||||||||
Accounts payable and other liabilities | $ | ||||||||||||||
Liabilities related to consolidated inventory not owned | — | ||||||||||||||
Senior notes and other debts payable | |||||||||||||||
Intercompany | ( | ) | |||||||||||||
( | ) | ||||||||||||||
Rialto | |||||||||||||||
Lennar Financial Services | |||||||||||||||
Lennar Multifamily | |||||||||||||||
Total liabilities | $ | ( | ) | ||||||||||||
Stockholders’ equity | ( | ) | |||||||||||||
Noncontrolling interests | |||||||||||||||
Total equity | ( | ) | |||||||||||||
Total liabilities and equity | $ | ( | ) |
Consolidating Statement of Operations and Comprehensive Income Year Ended November 30, 2016 | |||||||||||||||
(In thousands) | Lennar Corporation | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Total | ||||||||||
Revenues: | |||||||||||||||
Lennar Homebuilding | $ | ||||||||||||||
Lennar Financial Services | ( | ) | |||||||||||||
Rialto | |||||||||||||||
Lennar Multifamily | ( | ) | |||||||||||||
Total revenues | ( | ) | |||||||||||||
Cost and expenses: | |||||||||||||||
Lennar Homebuilding | ( | ) | |||||||||||||
Lennar Financial Services | ( | ) | |||||||||||||
Rialto | ( | ) | |||||||||||||
Lennar Multifamily | |||||||||||||||
Corporate general and administrative | |||||||||||||||
Total costs and expenses | ( | ) | |||||||||||||
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities | ( | ) | ( | ) | |||||||||||
Lennar Homebuilding other income, net | ( | ) | |||||||||||||
Other interest expense | ( | ) | ( | ) | ( | ) | |||||||||
Rialto equity in earnings from unconsolidated entities | |||||||||||||||
Rialto other expense, net | ( | ) | ( | ) | |||||||||||
Lennar Multifamily equity in earnings from unconsolidated entities | |||||||||||||||
Earnings (loss) before income taxes | ( | ) | |||||||||||||
Benefit (provision) for income taxes | ( | ) | ( | ) | ( | ) | |||||||||
Equity in earnings from subsidiaries | ( | ) | |||||||||||||
Net earnings (including net earnings attributable to noncontrolling interests) | ( | ) | |||||||||||||
Less: Net earnings attributable to noncontrolling interests | |||||||||||||||
Net earnings attributable to Lennar | $ | ( | ) | ||||||||||||
Other comprehensive income, net of tax: | |||||||||||||||
Net unrealized loss on securities available-for-sale | $ | ( | ) | ( | ) | ||||||||||
Reclassification adjustments for gains included in net earnings, net of tax | ( | ) | ( | ) | |||||||||||
Other comprehensive income attributable to Lennar | $ | ( | ) | ||||||||||||
Other comprehensive income attributable to noncontrolling interests | $ |
Consolidating Statement of Operations and Comprehensive Income Year Ended November 30, 2015 | |||||||||||||||
(In thousands) | Lennar Corporation | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Total | ||||||||||
Revenues: | |||||||||||||||
Lennar Homebuilding | $ | ||||||||||||||
Lennar Financial Services | ( | ) | |||||||||||||
Rialto | |||||||||||||||
Lennar Multifamily | ( | ) | |||||||||||||
Total revenues | ( | ) | |||||||||||||
Cost and expenses: | |||||||||||||||
Lennar Homebuilding | ( | ) | |||||||||||||
Lennar Financial Services | ( | ) | |||||||||||||
Rialto | ( | ) | |||||||||||||
Lennar Multifamily | |||||||||||||||
Corporate general and administrative | |||||||||||||||
Total costs and expenses | ( | ) | |||||||||||||
Lennar Homebuilding equity in earnings from unconsolidated entities | |||||||||||||||
Lennar Homebuilding other income (expense), net | ( | ) | ( | ) | |||||||||||
Other interest expense | ( | ) | ( | ) | ( | ) | |||||||||
Rialto equity in earnings from unconsolidated entities | |||||||||||||||
Rialto other income, net | |||||||||||||||
Lennar Multifamily equity in earnings from unconsolidated entities | |||||||||||||||
Earnings (loss) before income taxes | ( | ) | |||||||||||||
Benefit (provision) for income taxes | ( | ) | ( | ) | ( | ) | |||||||||
Equity in earnings from subsidiaries | ( | ) | |||||||||||||
Net earnings (including net earnings attributable to noncontrolling interests) | ( | ) | |||||||||||||
Less: Net earnings attributable to noncontrolling interests | |||||||||||||||
Net earnings attributable to Lennar | $ | ( | ) | ||||||||||||
Other comprehensive income, net of tax: | |||||||||||||||
Net unrealized loss on securities available-for-sale | $ | ( | ) | ( | ) | ||||||||||
Reclassification adjustments for gains included in net earnings | $ | ( | ) | ( | ) | ||||||||||
Other comprehensive income attributable to Lennar | $ | ( | ) | ||||||||||||
Other comprehensive earnings attributable to noncontrolling interests | $ |
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 | $ | ||||||||||||||
Lennar Financial Services | ( | ) | |||||||||||||
Rialto | |||||||||||||||
Lennar Multifamily | |||||||||||||||
Total revenues | ( | ) | |||||||||||||
Cost and expenses: | |||||||||||||||
Lennar Homebuilding | ( | ) | |||||||||||||
Lennar Financial Services | ( | ) | |||||||||||||
Rialto | |||||||||||||||
Lennar Multifamily | |||||||||||||||
Corporate general and administrative | — | ||||||||||||||
Total costs and expenses | ( | ) | |||||||||||||
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities | ( | ) | ( | ) | |||||||||||
Lennar Homebuilding other income, net | ( | ) | |||||||||||||
Other interest expense | ( | ) | ( | ) | ( | ) | |||||||||
Rialto equity in earnings from unconsolidated entities | |||||||||||||||
Rialto other income, net | |||||||||||||||
Lennar Multifamily equity in earnings from unconsolidated entities | |||||||||||||||
Earnings (loss) before income taxes | ( | ) | |||||||||||||
Benefit (provision) for income taxes | ( | ) | ( | ) | ( | ) | |||||||||
Equity in earnings from subsidiaries | ( | ) | |||||||||||||
Net earnings (including net loss attributable to noncontrolling interests) | ( | ) | |||||||||||||
Less: Net loss attributable to noncontrolling interests | ( | ) | ( | ) | |||||||||||
Net earnings attributable to Lennar | $ | ( | ) | ||||||||||||
Other comprehensive income, net of tax: | |||||||||||||||
Net unrealized loss on securities available-for-sale | $ | ||||||||||||||
Other comprehensive income attributable to Lennar | $ | ( | ) | ||||||||||||
Other comprehensive loss attributable to noncontrolling interests | $ | ( | ) | ( | ) |
Consolidating Statement of Cash Flows Year Ended November 30, 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) | $ | ( | ) | ||||||||||||
Distributions of earnings from guarantor and non-guarantor subsidiaries | ( | ) | |||||||||||||
Other adjustments to reconcile net earnings (including net earnings attributable to noncontrolling interests) to net cash provided by (used in) operating activities | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net cash provided by (used in) operating activities | ( | ) | ( | ) | |||||||||||
Cash flows from investing activities: | |||||||||||||||
Proceeds from sale of operating properties | |||||||||||||||
(Investments in and contributions to) and distributions of capital from unconsolidated entities, net | ( | ) | ( | ) | |||||||||||
Proceeds from sales of real estate owned | |||||||||||||||
Receipts of principal payments on loans receivable and other | |||||||||||||||
Originations of loans receivable | ( | ) | ( | ) | |||||||||||
Purchases of commercial mortgage-backed securities bonds | ( | ) | ( | ) | |||||||||||
Other | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Distributions of capital from guarantor and non-guarantor subsidiaries | ( | ) | |||||||||||||
Intercompany | ( | ) | |||||||||||||
Net cash provided by (used in) investing activities | ( | ) | ( | ) | ( | ) | |||||||||
Cash flows from financing activities: | |||||||||||||||
Net borrowings under warehouse facilities | |||||||||||||||
Proceeds from senior notes and debt issuance costs | ( | ) | |||||||||||||
Redemption of senior notes | ( | ) | ( | ) | |||||||||||
Conversions and exchanges of convertible senior notes | ( | ) | ( | ) | |||||||||||
Principal payments on Rialto notes payable including structured notes | ( | ) | ( | ) | |||||||||||
Net payments on other borrowings | ( | ) | ( | ) | ( | ) | |||||||||
Net payments related to noncontrolling interests | ( | ) | ( | ) | |||||||||||
Excess tax benefits from share-based awards | |||||||||||||||
Common stock: | |||||||||||||||
Issuances | |||||||||||||||
Repurchases | ( | ) | ( | ) | |||||||||||
Dividends | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Intercompany | ( | ) | |||||||||||||
Net cash provided by (used in) financing activities | ( | ) | ( | ) | ( | ) | |||||||||
Net increase in cash and cash equivalents | |||||||||||||||
Cash and cash equivalents at beginning of period | |||||||||||||||
Cash and cash equivalents at end of period | $ |
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) | $ | ( | ) | ||||||||||||
Distributions of earnings from guarantor and non-guarantor subsidiaries | ( | ) | |||||||||||||
Other adjustments to reconcile net earnings (including net earnings attributable to noncontrolling interests) to net cash provided by (used in) operating activities | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net cash provided by (used in) operating activities | ( | ) | ( | ) | ( | ) | |||||||||
Cash flows from investing activities: | |||||||||||||||
Proceeds from sale of operating properties | |||||||||||||||
Investments in and contributions to unconsolidated entities, net of distributions of capital | ( | ) | ( | ) | ( | ) | |||||||||
Proceeds from sales of real estate owned | |||||||||||||||
Receipts of principal payments on loans receivable and other | |||||||||||||||
Originations of loans receivable | ( | ) | ( | ) | |||||||||||
Other | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Distributions of capital from guarantor and non-guarantor subsidiaries | ( | ) | |||||||||||||
Intercompany | ( | ) | |||||||||||||
Net cash provided by (used in) investing activities | ( | ) | ( | ) | |||||||||||
Cash flows from financing activities: | |||||||||||||||
Net borrowings under warehouse facilities | |||||||||||||||
Proceeds from senior notes and debt issuance costs | ( | ) | |||||||||||||
Redemption of senior notes | ( | ) | ( | ) | |||||||||||
Conversions and exchanges of convertible senior notes | ( | ) | ( | ) | |||||||||||
Principal payments on Rialto notes payable including structured notes | ( | ) | ( | ) | |||||||||||
Net payments on other borrowings | ( | ) | — | ( | ) | ||||||||||
Net payments related to noncontrolling interests | ( | ) | ( | ) | |||||||||||
Excess tax benefits from share-based awards | |||||||||||||||
Common stock: | |||||||||||||||
Issuances | |||||||||||||||
Repurchases | ( | ) | ( | ) | |||||||||||
Dividends | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Intercompany | ( | ) | |||||||||||||
Net cash provided by (used in) financing activities | ( | ) | ( | ) | |||||||||||
Net increase (decrease) in cash and cash equivalents | ( | ) | ( | ) | ( | ) | |||||||||
Cash and cash equivalents at beginning of period | |||||||||||||||
Cash and cash equivalents at end of period | $ |
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) | $ | ( | ) | ||||||||||||
Distributions of earnings from guarantor and non-guarantor subsidiaries | ( | ) | |||||||||||||
Other adjustments to reconcile net earnings (including net loss attributable to noncontrolling interests) to net cash provided by (used in) operating activities | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net cash provided by (used in) operating activities | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Cash flows from investing activities: | |||||||||||||||
Proceeds from sale of operating properties | |||||||||||||||
Distributions of capital from unconsolidated entities, net of investments in and contributions to | |||||||||||||||
Proceeds from sales of real estate owned | |||||||||||||||
Receipts of principal payments on loans receivable, net | |||||||||||||||
Other | ( | ) | ( | ) | ( | ) | |||||||||
Distributions of capital from guarantor and non-guarantor subsidiaries | ( | ) | |||||||||||||
Intercompany | ( | ) | |||||||||||||
Net cash provided by (used in) investing activities | ( | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||
Net repayments under warehouse facilities | |||||||||||||||
Net proceeds from senior notes and structured notes | |||||||||||||||
Redemption of senior notes | ( | ) | ( | ) | |||||||||||
Principal payments on Rialto notes payable | ( | ) | ( | ) | |||||||||||
Net payments on other borrowings | — | ( | ) | ( | ) | ( | ) | ||||||||
Exercise of land option contracts from an unconsolidated land investment venture | — | ( | ) | — | ( | ) | |||||||||
Net payments related to noncontrolling interests | ( | ) | ( | ) | |||||||||||
Excess tax benefits from share-based awards | |||||||||||||||
Common stock: | |||||||||||||||
Issuances | |||||||||||||||
Repurchases | ( | ) | ( | ) | |||||||||||
Dividends | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Intercompany | ( | ) | |||||||||||||
Net cash provided by financing activities | ( | ) | |||||||||||||
Net increase in cash and cash equivalents | |||||||||||||||
Cash and cash equivalents at beginning of period | |||||||||||||||
Cash and cash equivalents at end of period | $ |
First | Second | Third | Fourth | |||||||||
(In thousands, except per share amounts) | ||||||||||||
2016 | ||||||||||||
Revenues | $ | |||||||||||
Gross profit from sales of homes | $ | |||||||||||
Earnings before income taxes | $ | |||||||||||
Net earnings attributable to Lennar | $ | |||||||||||
Earnings per share: | ||||||||||||
Basic | $ | |||||||||||
Diluted | $ | |||||||||||
2015 | ||||||||||||
Revenues | $ | |||||||||||
Gross profit from sales of homes | $ | |||||||||||
Earnings before income taxes | $ | |||||||||||
Net earnings attributable to Lennar | $ | |||||||||||
Earnings per share: | ||||||||||||
Basic | $ | |||||||||||
Diluted | $ |
/s/ DELOITTE & TOUCHE LLP |
Certified Public Accountants |
Miami, Florida |
January 20, 2017 |
Plan category | Number of shares to be issued upon exercise of outstanding options, warrants and rights (a) | Weighted-average exercise price of outstanding options, warrants and rights (b) | Number of shares remaining available for future issuance under equity compensation plans (excluding shares reflected in column (a)) c(1) | ||||||
Equity compensation plans approved by stockholders | 38,075 | $ | 45.83 | 13,797,140 | |||||
Equity compensation plans not approved by stockholders | — | — | — | ||||||
Total | 38,075 | $ | 45.83 | 13,797,140 |
(1) | Both shares of Class A and Class B common stock may be issued. |
(a) | Documents filed as part of this Report. |
1. | The following financial statements are contained in Item 8: |
Financial Statements | Page in this Report |
2. | The following financial statement schedule is included in this Report: |
Financial Statement Schedule | Page in this Report |
3. | The following exhibits are filed with this Report or incorporated by reference: |
2.1 | Contribution and Sale Agreement, dated as of July 2, 2015, by and among Five Point Holdings, Inc., Newhall Holding Company, LLC, Newhall Intermediary Holding Company, LLC, Newhall Land Development, LLC, The Shipyard Communities, LLC, UST Lennar HW Scala SF Joint Venture, HPSCP Opportunities, L.P., Heritage Fields LLC, Lennar Heritage Fields, LLC, MSD Heritage Fields, LLC, FPC-HF Venture I, LLC, Heritage Fields Capital Co-Investor Member LLC, LNR HF II, LLC, FivePoint Communities Management, Inc., Five Point Communities, LP, Lennar Homes of California, Inc. and Emile Haddad - Incorporated by reference to Exhibit 2.1 of the Company’s Current Report on Form 8-K, dated July 7, 2015. |
2.2 | Amended and Restated Contribution and Sale Agreement, dated as of July 2, 2015, as amended and restated as of December 17, 2015, by and among Five Point Holdings, Inc., Newhall Holding Company, LLC, Newhall Intermediary Holding Company, LLC, Newhall Land Development, LLC, The Shipyard Communities, LLC, UST Lennar HW Scala SF Joint Venture, HPSCP Opportunities, L.P., Heritage Fields LLC, Lennar Heritage Fields, LLC, MSD Heritage Fields, LLC, FPC HF Venture I, LLC, Heritage Fields Capital Co Investor Member LLC, LNR HF II, LLC, Five Point Communities Management, Inc., Five Point Communities, LP, Lennar Homes Of California, Inc., and Emile Haddad - Incorporated by reference to Exhibit 2.2 of the Company’s Current Report on Form 8-K, dated December 21, 2015. |
2.3 | Second Amended and Restated Contribution and Sale Agreement, dated as of July 2, 2015, as amended and restated as of May 2, 2016, by and among Five Point Holdings, Inc., Newhall Holding Company, LLC, Newhall Intermediary Holding Company, LLC, Newhall Land Development, LLC, The Shipyard Communities, LLC, UST Lennar HW Scala SF Joint Venture, HPSCP Opportunities, L.P., Heritage Fields LLC, LenFive, LLC, MSD Heritage Fields, LLC, FPC-HF Venture I, LLC, Heritage Fields Capital Co-Investor Member LLC, LNR HF II, LLC, Five Point Communities Management, Inc., Five Point Communities, LP, Lennar Homes of California, Inc. and Emile Haddad - Incorporated by reference to Exhibit 2.1 of the Company’s Current Report on Form 8-K, dated May 2, 2016. |
2.4 | Agreement and Plan of Merger among WCI Communities, Inc., Lennar Corporation, Marlin Green Corp., and Marlin Blue LLC Dated September 22, 2016 - Incorporated by reference to Exhibit 2.1 of the Company’s Current Report on Form 8-K, dated September 22, 2016. |
3.1 | Restated Certificate of Incorporation of the Company, dated January 14, 2015 - Incorporated by reference to Exhibit 3.1 of the Company’s Annual Report on Form 10-K for the fiscal year ended November 30, 2014. |
3.2 | Bylaws of the Company, as amended effective October 3, 2013 - Incorporated by reference to Exhibit 3.6 of the Company’s Current Report on Form 8-K, dated October 4, 2013. |
4.1 | Indenture, dated as of December 31, 1997, between Lennar Corporation and Bank One Trust Company, N.A., as trustee - Incorporated by reference to Exhibit 4 of the Company’s Registration Statement on Form S-3, Registration No. 333-45527, filed with the Commission on February 3, 1998. |
4.2 | Indenture, dated April 30, 2009, between Lennar and The Bank of New York Mellon, as trustee (relating to Lennar’s 12.25% Senior Notes due 2017) - Incorporated by reference to Exhibit 99.1 of the Company’s Current Report on Form 8-K, dated April 30, 2009. |
4.3 | Indenture, dated May 4, 2010, between Lennar and The Bank of New York Mellon, as trustee (relating to Lennar’s 6.95% Senior Notes due 2018) - Incorporated by reference to Exhibit 4.1 of the Company’s Registration Statement on Form S-4, Registration No. 333-167622, filed with the Commission on June 18, 2010. |
4.4 | Indenture, dated July 20, 2012, between Lennar and The Bank of New York Mellon Trust Company, N.A., as trustee (relating to Lennar’s 4.75% Senior Notes due 2017) - Incorporated by reference to Exhibit 4.1 of the Company's Registration Statement on Form S-4, Registration No. 333-183755, filed with the Commission on September 6, 2012. |
4.5 | Indenture, dated October 23, 2012, between Lennar and The Bank of New York Mellon Trust Company, N.A., as trustee (relating to Lennar’s 4.750% Senior Notes due 2022) - Incorporated by reference to Exhibit 4.12 of the Company's Annual Report on Form 10-K, for the fiscal year ended November 30, 2012. |
4.6 | Indenture, dated February 4, 2013, between Lennar and The Bank of New York Mellon Trust Company, N.A., as trustee (relating to Lennar’s 4.125% Senior Notes due 2018) - Incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 10-Q for the quarter ended February 28, 2013. |
4.7 | Eighth Supplemental Indenture, dated as of February 12, 2014, among Lennar Corporation, each of the guarantors identified therein and The Bank of New York Mellon, as trustee, including the form of 4.50% Senior Notes due 2019 - Incorporated by reference to Exhibit 4.12 of the Company’s Current Report on Form 8-K, dated February 13, 2014. |
4.8 | Ninth Supplemental Indenture, dated as of November 25, 2014, among Lennar Corporation, each of the guarantors identified therein and The Bank of New York Mellon, as trustee, including the form of 4.500% Senior Notes due 2019 - Incorporated by reference to Exhibit 4.13 of the Company’s Current Report on Form 8-K, dated November 25, 2014. |
4.9 | Tenth Supplemental Indenture, dated as of April 28, 2015, among Lennar Corporation, each of the guarantors identified therein and The Bank of New York Mellon, as trustee, including the form of 4.750% Senior Notes due 2025 - Incorporated by reference to Exhibit 4.14 of the Company’s Current Report on Form 8-K, dated April 29, 2015. |
4.10 | Eleventh Supplemental Indenture, dated as of November 5, 2015, among Lennar Corporation, each of the guarantors identified therein and The Bank of New York Mellon, as trustee, including the form of 4.875% Senior Notes due 2023 - Incorporated by reference to Exhibit 4.15 of the Company’s Current Report on Form 8-K, dated November 6, 2015. |
4.11 | Twelfth Supplemental Indenture, dated as of March 4, 2016, among Lennar Corporation, each of the guarantors identified therein and The Bank of New York Mellon, as trustee, including the form of 4.750% Senior Notes due 2021 - Incorporated by reference to Exhibit 4.16 of the Company’s Current Report on Form 8-K, dated March 4, 2016. |
10.1* | Lennar Corporation 2007 Equity Incentive Plan, as amended effective January 12, 2012 - Incorporated by reference to Exhibit 1 of the Company’s Proxy Statement on Schedule 14A dated March 2, 2012. |
10.2* | Lennar Corporation 2012 Incentive Compensation Plan - Incorporated by reference to Exhibit 2 of the Company’s Proxy Statement on Schedule 14A dated March 2, 2012. |
10.3* | Lennar Corporation Nonqualified Deferred Compensation Plan - Incorporated by reference to Exhibit 10 of the Company’s Quarterly Report on Form 10-Q for the quarter ended August 31, 2002. |
10.4* | Lennar Corporation 2016 Equity Incentive Plan - Incorporated by reference to Exhibit A of the Company’s Definitive Proxy Statement on Schedule 14A, filed with the Commission on March 2, 2016. |
10.5* | Lennar Corporation 2016 Incentive Compensation Plan - Incorporated by reference to Exhibit B of the Company’s Definitive Proxy Statement on Schedule 14A, filed with the Commission on March 2, 2016. |
10.6* | Aircraft Time-Sharing Agreement, dated August 17, 2005, between U.S. Home Corporation and Stuart Miller -Incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K, dated August 17, 2005. |
10.7* | Amendment No. 1 to Aircraft Time-Sharing Agreement, dated September 1, 2005, between U.S. Home Corporation and Stuart Miller - Incorporated by reference to Exhibit 10.16 of the Company’s Annual Report on Form 10-K for the fiscal year ended November 30, 2005. |
10.8 | Amended and Restated Aircraft Dry Lease Agreement, dated December 1, 2008, between U.S. Home Corporation and Stuart Miller - Incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K, dated February 18, 2009. |
10.9* | Aircraft Time-Sharing Agreement, dated January 26, 2011, between U.S. Home Corporation and Richard Beckwitt -Incorporated by reference to Exhibit 10.22 of the Company’s Annual Report on Form 10-K for the fiscal year ended November 30, 2010. |
10.10 | Membership Interest Purchase Agreement, dated as of November 30, 2007, by and among Lennar, Lennar Homes of California, Inc., the Sellers named in the agreement and MS Rialto Residential Holdings, LLC. - Incorporated by reference to Exhibit 10.23 of the Company’s Annual Report on Form 10-K for the fiscal year ended November 30, 2007. |
10.11 | Third Amended and Restated Credit Agreement, dated as of April 17, 2015, among Lennar Corporation, as borrower, JPMorgan Chase Bank, N.A., as swingline lender, issuing lender, and administrative agent, the several lenders from time to time parties thereto, and the other parties and agents therein - Incorporated by reference to Exhibit 10.21 of the Company’s Current Report on Form 8-K, dated April 20, 2015. |
10.12 | Third Amended and Restated Guarantee Agreement, dated as of April 17, 2015, among certain of Lennar Corporation’s subsidiaries in favor of guaranteed parties referred to therein - Incorporated by reference to Exhibit 10.22 of the Company’s Current Report on Form 8-K, dated April 20, 2015. |
10.13 | Fourth Amended and Restated Credit Agreement, dated as of June 24, 2016, among Lennar Corporation, as borrower, JPMorgan Chase Bank, N.A., as swingline lender, issuing lender, and administrative agent, the several lenders from time to time parties thereto, and the other parties and agents therein - Incorporated by reference to Exhibit 10.19 of the Company’s Current Report on Form 8-K, dated June 24, 2016. |
10.14 | Fourth Amended and Restated Guarantee Agreement, dated as of June 24, 2016, among certain of Lennar Corporation’s subsidiaries in favor of guaranteed parties referred to therein - Incorporated by reference to Exhibit 10.20 of the Company’s Current Report on Form 8-K, dated June 24, 2016. |
10.15 | Indenture, dated November 14, 2013, among Rialto Holdings, LLC, Rialto Corporation, the Guarantors named therein and Wells Fargo Bank, National Association, as trustee, including the form of 7.000% Senior Notes due 2018 - Incorporated by reference to Exhibit 10.20 of the Company’s Current Report on Form 8-K, dated November 14, 2013. |
10.16* | 2015 Award Agreements for Stuart Miller, Rick Beckwitt, Jonathan Jaffe, Bruce Gross and Mark Sustana - Incorporated by reference to Exhibit 10.18 of the Company’s Annual Report on Form 10-K for the fiscal year ended November 30, 2014. |
10.17* | 2016 Award Agreements for Stuart Miller, Rick Beckwitt, Jonathan Jaffe, Bruce Gross and Mark Sustana - Incorporated by reference to Exhibit 10.16 of the Company’s Annual Report on Form 10-K for the fiscal year ended November 30, 2015. |
10.18* | 2017 Award Agreements for Stuart Miller, Rick Beckwitt, Jonathan Jaffe, Bruce Gross and Mark Sustana.** |
10.19 | Form of Aircraft Time Sharing Agreement, dated February 12, 2015, between U.S. Home Corporation and Lessee -Incorporated by reference to Exhibit 10.19 of the Company’s Current Report on Form 8-K, dated February 19, 2015. |
10.20 | Amendment, dated February 12, 2015, to Amended and Restated Aircraft Dry Lease Agreement, dated December 1, 2008, among Lennar Aircraft I, LLC, U.S. Home Corporation and Stuart Miller - Incorporated by reference to Exhibit 10.20 of the Company’s Current Report on Form 8-K, dated February 19, 2015. |
21 | List of subsidiaries.** |
23 | Consent of Independent Registered Public Accounting Firm.** |
31.1 | Rule 13a-14a/15d-14(a) Certification of Stuart Miller.** |
31.2 | Rule 13a-14a/15d-14(a) Certification of Bruce Gross.** |
32 | Section 1350 Certifications of Stuart Miller and Bruce Gross.** |
101 | The following financial statements from Lennar Corporation Annual Report on Form 10-K for the year ended November 30, 2016, filed on January 20, 2017, formatted in XBRL (Extensible Business Reporting Language); (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations and Comprehensive Income (Loss), (iii) Consolidated Statements of Equity (iv) Consolidated Statements of Cash Flows and (v) the Notes to Consolidated Financial Statements. |
LENNAR CORPORATION | ||
/S/ STUART MILLER | ||
Stuart Miller | ||
Chief Executive Officer and Director | ||
Date: | January 20, 2017 |
Principal Executive Officer: | ||
Stuart Miller | /S/ STUART MILLER | |
Chief Executive Officer and Director | Date: | January 20, 2017 |
Principal Financial Officer: | ||
Bruce Gross | /S/ BRUCE GROSS | |
Vice President and Chief Financial Officer | Date: | January 20, 2017 |
Principal Accounting Officer: | ||
David M. Collins | /S/ DAVID M. COLLINS | |
Controller | Date: | January 20, 2017 |
Directors: | ||
Irving Bolotin | /S/ IRVING BOLOTIN | |
Date: | January 20, 2017 | |
Steven L. Gerard | /S/ STEVEN L. GERARD | |
Date: | January 20, 2017 | |
Theron I. ("Tig") Gilliam, Jr. | /s/ THERON I. ("TIG") GILLIAM, JR. | |
Date: | January 20, 2017 | |
Sherrill W. Hudson | /S/ SHERRILL W. HUDSON | |
Date: | January 20, 2017 | |
Sidney Lapidus | /S/ SIDNEY LAPIDUS | |
Date: | January 20, 2017 | |
Teri McClure | /S/ TERI MCCLURE | |
Date: | January 20, 2017 | |
Armando Olivera | /S/ ARMANDO OLIVERA | |
Date: | January 20, 2017 | |
Jeffrey Sonnenfeld | /S/ JEFFREY SONNENFELD | |
Date: | January 20, 2017 |
/s/ DELOITTE & TOUCHE LLP |
Certified Public Accountants |
Miami, Florida |
January 20, 2017 |
Additions | |||||||||||||||
(In thousands) | Beginning balance | Charged to costs and expenses | Charged (credited) to other accounts | Deductions | Ending balance | ||||||||||
Year ended November 30, 2016 | |||||||||||||||
Allowances deducted from assets to which they apply: | |||||||||||||||
Allowances for doubtful accounts and notes and other receivables | $ | ( | ) | ( | ) | ||||||||||
Allowance for loan losses and loans receivable | $ | ( | ) | ||||||||||||
Allowance against net deferred tax assets | $ | ( | ) | ||||||||||||
Year ended November 30, 2015 | |||||||||||||||
Allowances deducted from assets to which they apply: | |||||||||||||||
Allowances for doubtful accounts and notes and other receivables | $ | ( | ) | ( | ) | ||||||||||
Allowance for loan losses and loans receivable | $ | ( | ) | ||||||||||||
Allowance against net deferred tax assets | $ | ( | ) | ||||||||||||
Year ended November 30, 2014 | |||||||||||||||
Allowances deducted from assets to which they apply: | |||||||||||||||
Allowances for doubtful accounts and notes and other receivables | $ | ( | ) | ||||||||||||
Allowance for loan losses and loans receivable | $ | ( | ) | ||||||||||||
Allowance against net deferred tax assets | $ | ( | ) |
NAME | TARGET AWARD OPPORTUNITY [1] |
Stuart Miller | 1.00% of Lennar Corporation Pretax Income [2] |
• | The payment of any bonus shall be made no later than April 15th of the year following the fiscal year to which the bonus calculation applies, or if such day is not a business day, the next business day. |
• | 100% of the bonus payment is contingent on the recipient being employed with the Company on the applicable payment date. No bonus will be earned or paid unless the participant remains employed in good standing through such date. |
/S/ STUART MILLER | /S/ STEVEN L. GERARD | |
1/17/2017 | 1/12/2017 | |
Stuart Miller Chief Executive Officer Lennar Corporation | Steven Gerard Chairman, Compensation Committee Lennar Corporation |
NAME | TARGET AWARD OPPORTUNITY [1] |
Rick Beckwitt | 0.92% of Lennar Corporation Pretax Income [2] |
• | The payment of any bonus shall be made no later than April 15th of the year following the fiscal year to which the bonus calculation applies, or if such day is not a business day, the next business day. |
• | 100% of the bonus payment is contingent on the recipient being employed with the Company on the applicable payment date. No bonus will be earned or paid unless the participant remains employed in good standing through such date. |
/S/ RICK BECKWITT | /S/ STUART MILLER | |
1/12/2017 | 1/17/2017 | |
Rick Beckwitt President Lennar Corporation | Stuart Miller Chief Executive Officer Lennar Corporation |
NAME | TARGET AWARD OPPORTUNITY [1] |
Jon Jaffe | 0.92% of Lennar Corporation Pretax Income [2] |
• | The payment of any bonus shall be made no later than April 15th of the year following the fiscal year to which the bonus calculation applies, or if such day is not a business day, the next business day. |
• | 100% of the bonus payment is contingent on the recipient being employed with the Company on the applicable payment date. No bonus will be earned or paid unless the participant remains employed in good standing through such date. |
/S/ JON JAFFE | /S/ STUART MILLER | |
1/11/2017 | 1/17/2017 | |
Jon Jaffe Chief Operating Officer Lennar Corporation | Stuart Miller Chief Executive Officer Lennar Corporation |
NAME | DEPARTMENT | TARGET AWARD OPPORTUNITY [1] |
Bruce Gross | Executive | 100% of base salary + 1.00% of LFS Pretax Income |
PERFORMANCE CRITERIA (see definitions section for more detail) | PERCENT OF TARGET AWARD | PERFORMANCE LEVELS/ TARGET BONUS OPPORTUNITY | |
THRESHOLD | % OF TARGET | ||
Individual Performance — Based on annual Performance Appraisal review determined at the end of the fiscal year by current supervisor. | 60% | Good Very Good Excellent | 20% 40% 60% |
Corporate Governance, Company Policy and Procedure Adherence, and Internal Audit Evaluation — As determined by the Corporate Governance Committee | 40% | Good Very Good Excellent | 10% 25% 40% |
TOTAL [1] | 100% | ||
ADDITIONAL BONUS POTENTIAL: | |||
LFS Pretax Income | 1.00% | 1.00% of LFS Pretax Income | |
Pretax Achievement vs. Plan Upside Potential [2] | Up to +80% | • Exceeding Business Plan Profitability [2]• Amount and Success of Public Debt Raised• Successful WCI Integration & maximizing synergies • Establish Online Title Solution• Successfully grow Next Gen program in Corporate and LFS• Other Strategic Transactions |
• | The payment of any bonus shall be made no later than April 15th of the year following the fiscal year to which the bonus calculation applies, or if such day is not a business day, the next business day. |
• | 100% of the bonus payment is contingent on the recipient being employed with the Company on the applicable payment date. No bonus will be earned or paid unless the participant remains employed in good standing through such date. |
/S/ BRUCE GROSS | /S/ STUART MILLER | /S/ RICK BECKWITT | ||
1/12/2017 | 1/17/2017 | 1/12/2017 | ||
Bruce Gross Chief Financial Officer Lennar Corporation | Stuart Miller Chief Executive Officer Lennar Corporation | Rick Beckwitt President Lennar Corporation |
NAME | DEPARTMENT | TARGET AWARD OPPORTUNITY [1] |
Mark Sustana | Legal | 100% of base salary |
PERFORMANCE CRITERIA (see definitions section for more detail) | PERCENT OF TARGET AWARD | PERFORMANCE LEVELS/ TARGET BONUS OPPORTUNITY | |
THRESHOLD | % OF TARGET | ||
Individual Performance — Based on annual Performance Appraisal review determined at the end of the fiscal year by current supervisor. | 60% | Good Very Good Excellent | 20% 40% 60% |
Corporate Governance, Company Policy and Procedure Adherence, and Internal Audit Evaluation — As determined by the Corporate Governance Committee | 40% | Good Very Good Excellent | 10% 25% 40% |
TOTAL [1] | 100% | ||
UPSIDE POTENTIAL: | |||
Based on Achievement of Outperformance Goals | Up to +80% | • Exceeding Business Plan Profitability [2]• Successful WCI Integration & maximizing synergies • Tightly Managing Legal Expenses• Successful Resolution of Large Legal Cases |
• | The payment of any bonus shall be made no later than April 15th of the year following the fiscal year to which the bonus calculation applies, or if such day is not a business day, the next business day. |
• | 100% of the bonus payment is contingent on the recipient being employed with the Company on the applicable payment date. No bonus will be earned or paid unless the participant remains employed in good standing through such date. |
/S/ MARK SUSTANA | /S/ STUART MILLER | /S/ BRUCE GROSS | ||
1/12/2017 | 1/17/2017 | 1/12/2017 | ||
Mark Sustana General Counsel Lennar Corporation | Stuart Miller Chief Executive Officer Lennar Corporation | Bruce Gross Vice President & Chief Financial Officer Lennar Corporation |
LIST OF SUBSIDARIES AS OF NOVEMBER 30, 2016 | ||||
Company Name | State of Incorporation | DBAs | ||
308 Furman, Ltd. | TX | |||
360 Developers, LLC | FL | |||
Ann Arundel Farms, Ltd. | TX | |||
Aquaterra Utilities, Inc. | FL | |||
Asbury Woods L.L.C. | IL | |||
Astoria Options, LLC | DE | |||
Autumn Creek Development, Ltd. | TX | |||
Aylon, LLC | DE | |||
Bainebridge 249, LLC | FL | |||
Bay Colony Expansion 369, Ltd. | TX | |||
Bay River Colony Development, Ltd. | TX | |||
BB Investment Holdings, LLC | NV | |||
BCI Properties, LLC | NV | |||
Bellagio Lennar, LLC | FL | |||
Belle Meade LEN Holdings, LLC | FL | |||
Belle Meade Partners, LLC | FL | |||
Bonterra Lennar, LLC | FL | |||
BPH I, LLC | NV | |||
Bramalea California, Inc. | CA | |||
Bressi Gardenlane, LLC | DE | |||
Builders LP, Inc. | DE | |||
Cambria L.L.C. | IL | |||
Candlestick Retail Member, LLC | DE | |||
Cary Woods, LLC | IL | |||
Casa Marina Development, LLC | FL | |||
Caswell Acquisition Group, LLC | DE | |||
Central Park West Holdings, LLC | DE | |||
Cherrytree II LLC | MD | |||
CL Ventures, LLC | FL | |||
Club Bonterra Lennar, LLC | FL | |||
Coco Palm 82, LLC | FL | |||
Colonial Heritage LLC | VA | |||
Concord Station, LLP | FL | Club Concord Station | ||
Coventry L.L.C. | IL | |||
CP Red Oak Management, LLC | TX | |||
CP Red Oak Partners, Ltd. | TX | |||
CP Vertical Development Co. 1, LLC | DE | |||
CP/HPS Development Co. GP, LLC | DE | |||
CP/HPS Development Co.-C, LLC | DE | |||
CPFE, LLC | MD | |||
CPHP Development, LLC | DE | |||
Creekside Crossing, L.L.C. | IL |
LIST OF SUBSIDARIES AS OF NOVEMBER 30, 2016 | ||||
Company Name | State of Incorporation | DBAs | ||
Crest at Fondren Holdings, LLC | DE | |||
Crest at Fondren Investor, LLC | DE | |||
Danville Tassajara Partners, LLC | DE | |||
Darcy-Joliet L.L.C. | IL | |||
DBJ Holdings, LLC | NV | |||
DCA Financial, LLC | FL | |||
DTC Holdings of Florida, LLC | FL | |||
Durrell 33, LLC | NJ | |||
Eagle Bend Commercial, LLC | CO | |||
Eagle Home Mortgage of California, Inc. | CA | |||
Eagle Mortgage Holdings, LLC | DE | |||
Edgefield Holdings, LLC | DE | |||
Escena-PSC, LLC | DE | |||
Estates Seven, LLC | DE | |||
EV, LLC | MD | |||
Evergreen Village LLC | DE | |||
F&R Florida Homes, LLC | FL | |||
F&R QVI Home Investments USA, LLC | DE | |||
Fidelity Guaranty and Acceptance Corp. | DE | First Texas Fidelity Company | ||
Five Point Communities Management, Inc. | DE | |||
Five Point Communities, LP | DE | |||
FLORDADE LLC | FL | |||
Fox-Maple Associates, LLC | NJ | Maple Ridge Asociates, LLC | ||
Friendswood Development Company, LLC | TX | |||
Garco Investments, LLC | FL | |||
Greystone Construction, Inc. | AZ | |||
Greystone Homes of Nevada, Inc. | DE | |||
Greystone Nevada, LLC | DE | Lennar Homes | ||
Greywall Club L.L.C. | IL | |||
Hammocks Lennar LLC | FL | |||
Harveston, LLC | DE | |||
Haverton L.L.C. | IL | |||
HCC Investors, LLC | DE | |||
Heathcote Commons LLC | VA | |||
Heritage of Auburn Hills, L.L.C. | MI | |||
Hewitts Landing Trustee, LLC | MA | |||
Home Buyer's Advantage Realty, Inc. | TX | |||
Homecraft Corporation | TX | |||
HPS Development Co., LP | DE | |||
HPS Vertical Development Co., LLC | DE | |||
HPS Vertical Development Co.-B, LP | DE | |||
HPS Vertical Development Co.-D/E, LLC | DE | |||
HPS1 Block 1, LLC | DE |
LIST OF SUBSIDARIES AS OF NOVEMBER 30, 2016 | ||||
Company Name | State of Incorporation | DBAs | ||
HPS1 Block 48-1A, LLC | DE | |||
HPS1 Block 48-1B, LLC | DE | |||
HPS1 Block 48-2A, LLC | DE | |||
HPS1 Block 48-2B, LLC | DE | |||
HPS1 Block 48-3A, LLC | DE | |||
HPS1 Block 48-3B, LLC | DE | |||
HPS1 Block 50, LLC | DE | |||
HPS1 Block 51, LLC | DE | |||
HPS1 Block 52, LLC | DE | |||
HPS1 Block 53, LLC | DE | |||
HPS1 Block 54, LLC | DE | |||
HPS1 Block 55, LLC | DE | |||
HPS1 Block 56/57, LLC | DE | |||
HTC Golf Club, LLC | CO | |||
Inactive Companies, LLC | FL | |||
Independence L.L.C. | VA | |||
Independence Orlando, LLC | FL | |||
Isles at Bayshore Club, LLC | FL | |||
Kendall Hammocks Commercial, LLC | FL | |||
LAC MOUNTAIN VIEW INVESTOR, LLC | DE | |||
Lakelands at Easton, L.L.C. | MD | |||
Lakeside Farm, LLC | MD | |||
LCD Asante, LLC | DE | |||
LCI Downtown Doral Investor, LLC | DE | |||
LCI North DeKalb Investor GP, LLC | DE | |||
LCI North DeKalb Investor LP, LLC | DE | |||
Legends Club, LLC | FL | |||
Legends Golf Club, LLC | FL | |||
LEN - Belle Meade, LLC | FL | |||
Len - Little Harbor, LLC | DE | |||
LEN - OBS Windemere, LLC | DE | |||
LEN - Palm Vista, LLC | FL | |||
Len FW Investor, LLC | DE | |||
LEN Mirada Investor, LLC | DE | |||
LEN OT Holdings, LLC | FL | |||
LEN Paradise Cable, LLC | FL | |||
LEN Paradise Operating, LLC | FL | |||
Len Paradise, LLC | FL | |||
LEN-CG South, LLC | FL | |||
LenCom, LLC | DE | |||
Lencraft, LLC | MD | |||
LenFive Sub II, LLC | DE | |||
LenFive Sub III, LLC | DE |
LIST OF SUBSIDARIES AS OF NOVEMBER 30, 2016 | ||||
Company Name | State of Incorporation | DBAs | ||
LenFive Sub, LLC | DE | |||
LenFive, LLC | DE | |||
LENH I, LLC | FL | |||
Len-Hawks Point, LLC | FL | |||
Len-MN, LLC | DE | |||
Lennar Aircraft I, LLC | DE | |||
Lennar Arizona Construction, Inc. | AZ | |||
Lennar Arizona, Inc. | AZ | |||
Lennar Associates Management Holding Company | FL | |||
Lennar Associates Management, LLC | DE | |||
Lennar at Jackson, LLC | DE | |||
Lennar at Marlboro 79, LLC | DE | |||
Lennar at Monroe, LLC | DE | |||
Lennar Avenue One, LLC | DE | |||
Lennar Berkeley, LLC | NJ | |||
Lennar Bridges, LLC | CA | |||
Lennar Buffington Colorado Crossing, L.P. | TX | |||
Lennar Buffington Zachary Scott, L.P. | TX | |||
Lennar Carolinas, LLC | DE | |||
Lennar Central Park, LLC | DE | |||
Lennar Central Region Sweep, Inc. | NV | |||
Lennar Central Texas, L.P. | TX | |||
Lennar Chicago, Inc. | IL | Lennar | ||
Lennar Cobra, LLC | DE | |||
Lennar Colorado Minerals LLC | CO | |||
Lennar Colorado, LLC | CO | Blackstone Country Club | ||
Lennar Commercial, LLC | DE | |||
Lennar Communities Development, Inc. | DE | |||
Lennar Communities Nevada, LLC | NV | |||
Lennar Communities of Chicago L.L.C. | IL | |||
Lennar Communities, Inc. | CA | |||
Lennar Concord, LLC | DE | |||
Lennar Construction, Inc. | AZ | |||
Lennar Courts, LLC | FL | |||
Lennar Developers, Inc. | FL | |||
Lennar Ewing, LLC | NJ | |||
Lennar Family of Builders GP, Inc. | DE | |||
Lennar Family of Builders Limited Partnership | DE | |||
Lennar Financial Services, LLC | FL | |||
Lennar Flamingo, LLC | FL | |||
Lennar Fresno, Inc. | CA | |||
Lennar Gardens, LLC | FL | |||
Lennar Georgia, Inc. | GA |
LIST OF SUBSIDARIES AS OF NOVEMBER 30, 2016 | ||||
Company Name | State of Incorporation | DBAs | ||
Lennar Greer Ranch Venture, LLC | CA | |||
Lennar Heritage Fields, LLC | CA | |||
Lennar Hingham Holdings, LLC | DE | |||
Lennar Hingham JV, LLC | DE | |||
Lennar Homes Holding, LLC | DE | |||
Lennar Homes NJ, LLC | DE | |||
Lennar Homes of Arizona, Inc. | AZ | |||
Lennar Homes of California, Inc. | CA | |||
LENNAR HOMES OF TENNESSEE, LLC | DE | |||
Lennar Homes of Texas Land and Construction, Ltd. | TX | Friendswood Development Company | ||
Lennar Homes of Texas Land and Construction, Ltd. | TX | Village Builders Land Company | ||
Lennar Homes of Texas Sales and Marketing, Ltd. | TX | Kingswood Sales Associates | ||
Lennar Homes of Texas Sales and Marketing, Ltd. | TX | Houston Village Builders, Inc. | ||
Lennar Homes of Texas Sales and Marketing, Ltd. | TX | Friendswood Land Development Company | ||
Lennar Homes of Texas Sales and Marketing, Ltd. | TX | Bay Oaks Sales Associates | ||
Lennar Homes of Texas Sales and Marketing, Ltd. | TX | Lennar Homes | ||
Lennar Homes of Texas Sales and Marketing, Ltd. | TX | Lennar Homes of Texas | ||
Lennar Homes of Texas Sales and Marketing, Ltd. | TX | Lennar Homes of Texas, Inc. | ||
Lennar Homes of Texas Sales and Marketing, Ltd. | TX | U.S. Home | ||
Lennar Homes of Texas Sales and Marketing, Ltd. | TX | U.S. Home of Texas | ||
Lennar Homes of Texas Sales and Marketing, Ltd. | TX | U.S. Home of Texas, Inc. | ||
Lennar Homes of Texas Sales and Marketing, Ltd. | TX | NuHome Designs, Inc. | ||
Lennar Homes of Texas Sales and Marketing, Ltd. | TX | Village Builders, Inc. | ||
Lennar Homes of Texas Sales and Marketing, Ltd. | TX | NuHome of Texas, Inc. | ||
Lennar Homes of Texas Sales and Marketing, Ltd. | TX | NuHome Designs | ||
Lennar Homes of Texas Sales and Marketing, Ltd. | TX | NuHome of Texas | ||
Lennar Homes of Texas Sales and Marketing, Ltd. | TX | Village Builders | ||
Lennar Homes of Texas Sales and Marketing, Ltd. | TX | Friendswood Development Company | ||
Lennar Homes, LLC | FL | Baywinds Land Trust D/B/A Club Vineyards | ||
Lennar Homes, LLC | FL | Doral Park | ||
Lennar Homes, LLC | FL | Doral Park Joint Venture | ||
Lennar Homes, LLC | FL | The Breakers at Lennar's Pembroke Isles | ||
Lennar Homes, LLC | FL | Doral Park Country Club | ||
Lennar Homes, LLC | FL | Coco Pointe | ||
Lennar Homes, LLC | FL | The Point at Lennar's Pembroke Isles | ||
Lennar Homes, LLC | FL | The Royal Club | ||
Lennar Homes, LLC | FL | The Palace | ||
Lennar Homes, LLC | FL | Club Pembroke Isles | ||
Lennar Homes, LLC | FL | Walnut Creek | ||
Lennar Homes, LLC | FL | Lennars The Palms @ Pembroke Isles | ||
Lennar Homes, LLC | FL | Walnut Creek Club | ||
Lennar Homes, LLC | FL | Lennar Century 8th Street Developers | ||
Lennar Homes, LLC | FL | Your Hometown Builder |
LIST OF SUBSIDARIES AS OF NOVEMBER 30, 2016 | ||||
Company Name | State of Incorporation | DBAs | ||
Lennar Homes, LLC | FL | Lennar Communities | ||
Lennar Homes, LLC | FL | Verona Trace Club, Inc. | ||
Lennar Homes, LLC | FL | Lake Osborne Trailer Ranch | ||
Lennar Homes, LLC | FL | Tripson Estates Club, Inc. | ||
Lennar Homes, LLC | FL | Club Carriage Pointe | ||
Lennar Homes, LLC | FL | Club Tuscany Village | ||
Lennar Homes, LLC | FL | Club Silver Palms | ||
Lennar Homes, LLC | FL | Bent Creek Club, Inc. | ||
Lennar Homes, LLC | FL | U.S. Home | ||
Lennar Homes, LLC | FL | Verona Trace Club, Inc. | ||
Lennar Homes, LLC | FL | Club Malibu Bay | ||
Lennar Homes, LLC | FL | Copper Creek Club, Inc. | ||
Lennar Homes, LLC | FL | Isles of Bayshore Club | ||
Lennar Homes, LLC | FL | Club Miralago | ||
Lennar Homes, LLC | FL | Club Gardens by the Hammocks | ||
Lennar Homes, LLC | FL | Club Vineyards | ||
Lennar Imperial Holdings Limited Partnership | DE | |||
Lennar International Holding, LLC | DE | |||
Lennar International, LLC | DE | |||
Lennar Lakeside Investor, LLC | DE | |||
Lennar Layton, LLC | DE | |||
Lennar Long Beach Promenade Partners, LLC | DE | |||
Lennar Lytle, LLC | DE | |||
Lennar Mare Island, LLC | CA | |||
Lennar Marina A Funding, LLC | DE | |||
Lennar Massachusetts Properties, Inc. | DE | |||
Lennar MF Holdings, LLC | DE | |||
Lennar Middletown, LLC | NJ | |||
Lennar Multifamily BTC Venture GP Subsidiary, LLC | DE | |||
Lennar Multifamily BTC Venture GP, LLC | DE | |||
Lennar Multifamily BTC Venture LP, LLC | DE | |||
Lennar Multifamily BTC Venture Manager, LLC | DE | |||
Lennar Multifamily Communities, LLC | DE | LMC a Lennar Company | ||
Lennar Multifamily Venture DC LP | DE | |||
Lennar New Jersey Properties, Inc. | DE | |||
Lennar New York, LLC | NY | |||
Lennar Northeast Properties LLC | NJ | |||
Lennar Northeast Properties, Inc. | NV | |||
Lennar Northwest, Inc. | DE | |||
Lennar OHB, LLC | NJ | |||
Lennar Pacific Properties Management, Inc. | DE | |||
Lennar Pacific Properties, Inc. | DE | |||
Lennar Pacific, Inc. | DE |
LIST OF SUBSIDARIES AS OF NOVEMBER 30, 2016 | ||||
Company Name | State of Incorporation | DBAs | ||
Lennar PI Acquisition, LLC | NJ | |||
Lennar PI Property Acquisition, LLC | NJ | |||
Lennar PIS Management Company, LLC | DE | |||
Lennar Plumsted LLC | NJ | |||
Lennar Point, LLC | NJ | |||
Lennar Port Imperial South, LLC | DE | |||
Lennar Realty, Inc. | FL | |||
Lennar Reno, LLC | NV | Baker-Coleman Communities | ||
Lennar Reno, LLC | NV | Lennar Homes | ||
Lennar Reno, LLC | NV | Lennar Communities | ||
Lennar Rialto Investment LP | DE | |||
Lennar Riverside West Urban Renewal Company, L.L.C. | NJ | |||
Lennar Riverside West, LLC | DE | |||
Lennar Riverwalk, LLC | DE | |||
Lennar Sacramento, Inc. | CA | |||
Lennar Sales Corp. | CA | |||
Lennar Sierra Sunrise, LLC | CA | |||
Lennar Southland I, Inc. | CA | |||
Lennar Southwest Holding Corp. | NV | |||
Lennar Spencer's Crossing, LLC | DE | |||
Lennar Sun Ridge LLC | CA | |||
Lennar Texas Holding Company | TX | |||
Lennar Trading Company, LP | TX | |||
Lennar Ventures, LLC | FL | |||
Lennar West Valley, LLC | CA | |||
Lennar Winncrest, LLC | DE | |||
Lennar.com Inc. | FL | |||
Lennar/LNR Camino Palomar, LLC | CA | |||
Lennar/Shadeland, LLC | PA | |||
Lennar-Lantana Boatyard, Inc. | FL | |||
LEN-Ryan 1, LLC | FL | |||
Len-Verandahs, LLP | FL | |||
LFS Securities, LLC | FL | |||
LH Eastwind, LLC | FL | |||
LH-EH Layton Lakes Estates, LLC | AZ | |||
LHI Renaissance, LLC | FL | Club Oasis | ||
LMC 1001 Olive Investor, LLC | DE | |||
LMC 144th and Grant Investor, LLC | DE | |||
LMC 2401 Blake Street Holdings, LLC | DE | |||
LMC 2401 Blake Street Investor, LLC | DE | |||
LMC Axis Westminster Holdings, LLC | DE | |||
LMC Axis Westminster Investor, LLC | DE | |||
LMC Berkeley I Investor, LLC | DE |
LIST OF SUBSIDARIES AS OF NOVEMBER 30, 2016 | ||||
Company Name | State of Incorporation | DBAs | ||
LMC Berry Hill Lofts Holdings, LLC | DE | |||
LMC Berry Hill Lofts Investor, LLC | DE | |||
LMC Boca City Walk Developer, LLC | DE | |||
LMC Boca City Walk Investor, LLC | DE | |||
LMC Chandler and McClintock Holdings, LLC | DE | |||
LMC Charlotte Ballpark Developer, LLC | DE | |||
LMC Cityville Oak Park Holdings, LLC | DE | |||
LMC Cityville Oak Park Investor, LLC | DE | |||
LMC Construction, LLC | DE | |||
LMC Crest at Park West Holdings, LLC | DE | |||
LMC Development, LLC | DE | |||
LMC Emeryville I Investor, LLC | DE | |||
LMC Emeryville I Lennar Investor, LLC | DE | |||
LMC Gateway Investor, LLC | DE | |||
LMC Gateway Venture, LLC | DE | |||
LMC Gilman Square Investor, LLC | DE | |||
LMC Hollywood Highland Investor, LLC | DE | |||
LMC Huntington Crossing Holdings, LLC | DE | |||
LMC Living TRS, LP | DE | |||
LMC Living, Inc. | CA | |||
LMC Living, LLC | DE | |||
LMC Malden Station Investor, LLC | DE | LMI Soco Santa Fe, LLC | ||
LMC Millenia Investor II, LLC | DE | |||
LMC Millenia Investor, LLC | DE | |||
LMC Mountain View Holdings II, LLC | DE | |||
LMC NE Minneapolis Lot 2 Holdings, LLC | DE | |||
LMC New Bern Holdings, LLC | DE | |||
LMC New Bern Investor, LLC | DE | |||
LMC Oak Park Holdings, LLC | DE | |||
LMC Parkfield Holdings, LLC | DE | |||
LMC Parkfield Investor, LLC | DE | |||
LMC Righters Ferry Holdings, LLC | DE | |||
LMC River North Holdings, LLC | DE | |||
LMC San Francisco I Holdings, LLC | DE | |||
LMC Taylor Street Holdings, LLC | DE | |||
LMC Venture Developer, LLC | DE | |||
LMC West Loop Investor, LLC | DE | |||
LMI - Jacksonville Investor, LLC | DE | |||
LMI - South Kings Development Investor, LLC | DE | |||
LMI - West Seattle Holdings, LLC | DE | |||
LMI - West Seattle Investor, LLC | DE | |||
LMI - West Seattle, LLC | DE | |||
LMI (150 OCEAN) INVESTOR, LLC | DE |
LIST OF SUBSIDARIES AS OF NOVEMBER 30, 2016 | ||||
Company Name | State of Incorporation | DBAs | ||
LMI 99 Hudson Developer, LLC | DE | |||
LMI 99 Hudson Investor, LLC | DE | |||
LMI Cell Tower Investors, LLC | DE | |||
LMI City Walk Investor, LLC | DE | |||
LMI Collegedale Investor, LLC | DE | |||
LMI Collegedale, LLC | DE | |||
LMI Contractors, LLC | DE | |||
LMI Glencoe Dallas Investor, LLC | DE | |||
LMI Glenview Investor, LLC | DE | |||
LMI Lakes West Covina Investor, LLC | DE | |||
LMI Largo Park Investor, LLC | DE | |||
LMI Las Colinas Station, LLC | DE | |||
LMI Naperville Investor, LLC | DE | |||
LMI Pacific Tower, LLC | DE | |||
LMI Park Central Investor, LLC | DE | |||
LMI Park Central Two, LLC | DE | |||
LMI Peachtree Corners Investor, LLC | DE | |||
LMI Peachtree Corners, LLC | DE | |||
LMI Pearl Apartment Homes Investor, LLC | DE | |||
LMI Redwood City Investor, LLC | DE | |||
LMI TEMPE 601 W. RIO SALADO INVESTOR, LLC | DE | |||
LMI-AECOM Holdings, LLC | DE | |||
LMI-AECOM Jersey City, LLC | DE | |||
LMI-JC Developer, LLC | DE | |||
LMI-JC, LLC | DE | |||
LMV 1640 Broadway Holdings, LP | DE | |||
LMV 1701 Ballard REIT-DC, LP | DE | |||
LMV 19H Holdings, LP | DE | |||
LMV 19H REIT, LP | DE | |||
LMV 19H REIT-DC, LP | DE | |||
LMV 2026 Madison REIT-DC, LP | DE | |||
LMV 85 South Union REIT-DC, LP | DE | |||
LMV Annapolis Holdings, LLC | DE | |||
LMV Annapolis REIT, LLC | DE | |||
LMV Annapolis REIT-DC, LP | DE | |||
LMV Apache Terrace REIT-DC, LP | DE | |||
LMV ATown REIT-DC, LP | DE | |||
LMV Bloomington REIT-DC, LP | DE | |||
LMV Bolingbrook REIT-DC, LP | DE | |||
LMV Central at McDowell REIT-DC, LP | DE | |||
LMV East Village I REIT-DC, LP | DE | |||
LMV Edina REIT-DC, LP | DE | |||
LMV Interbay Holdings, LLC | DE |
LIST OF SUBSIDARIES AS OF NOVEMBER 30, 2016 | ||||
Company Name | State of Incorporation | DBAs | ||
LMV Little Italy REIT-DC, LP | DE | |||
LMV M Tower REIT-DC, LP | DE | |||
LMV Milpitas REIT-DC, LP | DE | |||
LMV NE Minneapolis REIT-DC, LP | DE | |||
LMV Oak Park REIT-DC, LP | DE | |||
LMV One20Fourth REIT-DC, LP | DE | |||
LMV Tysons REIT-DC, LP | DE | |||
LMV Vallagio III REIT-DC, LP | DE | |||
LMV Victory Block G REIT-DC, LP | DE | |||
LNC at Meadowbrook, LLC | IL | |||
LNC at Ravenna, LLC | IL | |||
LNC Communities I, Inc. | CO | |||
LNC Communities II, LLC | CO | Fortress Genesee III, LLC | ||
LNC Communities III, Inc. | CO | |||
LNC Communities IV, LLC | CO | |||
LNC Communities V, LLC | CO | |||
LNC Communities VI, LLC | CO | |||
LNC Communities VII, LLC | CO | |||
LNC Communities VIII, LLC | CO | |||
LNC Northeast Mortgage, Inc. | DE | |||
LNC Pennsylvania Realty, Inc. | PA | |||
Long Beach Development, LLC | TX | |||
Longleaf Acquisition, LLC | FL | |||
Lori Gardens Associates II, LLC | NJ | |||
Lori Gardens Associates III, LLC | NJ | |||
Lori Gardens Associates, L.L.C. | NJ | |||
Lorton Station, LLC | VA | |||
LS College Park, LLC | DE | |||
LW D'Andrea, LLC | DE | |||
Madrona Ridge L.L.C. | IL | |||
Madrona Village L.L.C. | IL | |||
Madrona Village Mews L.L.C. | IL | |||
Majestic Woods, LLC | NJ | |||
Maple and Broadway Holdings, LLC | DE | |||
Marlin Blue LLC | DE | |||
Marlin Green Corp. | DE | |||
Mid-County Utilities, Inc. | MD | |||
Miralago West Lennar, LLC | FL | |||
Mission Viejo 12S Venture, LP | CA | |||
Mission Viejo Holdings, Inc. | CA | |||
Moffett Meadows Partners, LLC | DE | |||
NASSA LLC | FL | |||
NC Properties I, LLC | DE |
LIST OF SUBSIDARIES AS OF NOVEMBER 30, 2016 | ||||
Company Name | State of Incorporation | DBAs | ||
NC Properties II, LLC | DE | |||
North American Advantage Insurance Services, LLC | TX | |||
North American Asset Development Corporation | CA | |||
North American Exchange Company | CA | |||
North American National Title Solutions, LLC | DE | |||
North American National Title Solutions, LLC | MD | |||
North American Services, LLC | CA | |||
North American Title Agency, Inc. | NJ | North American Abstract Agency | ||
North American Title Alliance, LLC | FL | North American Title Company | ||
North American Title Company | AZ | |||
North American Title Company | FL | |||
North American Title Company | IL | |||
North American Title Company | MN | |||
North American Title Company | NV | |||
North American Title Company | MD | |||
North American Title Company | TX | Southwest Land Title Company | ||
North American Title Company of Colorado | CO | |||
North American Title Company, Inc. | CA | |||
North American Title Company, LLC | OH | |||
North American Title Florida Alliance, LLC | FL | |||
North American Title Group, Inc. | FL | |||
North American Title Insurance Company | CA | |||
North American Title, LLC | UT | |||
Northbridge L.L.C. | IL | |||
Northeastern Properties LP, Inc. | NV | |||
OHC/Ascot Belle Meade, LLC | FL | |||
One SR, L.P. | TX | |||
Palm Gardens At Doral Clubhouse, LLC | FL | |||
Palm Gardens at Doral, LLC | FL | |||
Palm Springs Classic, LLC | DE | |||
Palm Vista Preserve, LLC | FL | |||
PD-Len Boca Raton, LLC | DE | |||
PG Properties Holding, LLC | NC | |||
Pioneer Meadows Development, LLC | NV | |||
Pioneer Meadows Investments, LLC | NV | |||
POMAC, LLC | MD | |||
Port Imperial South Building 14, LLC | NJ | |||
Portside Marina Developers, L.L.C. | NJ | |||
Portside Shipyard Developers, L.L.C. | NJ | |||
Portside SM Associates, L.L.C. | NJ | |||
Portside SM Holdings, L.L.C. | DE | |||
Prestonfield L.L.C. | IL | |||
Providence Lakes, LLP | FL |
LIST OF SUBSIDARIES AS OF NOVEMBER 30, 2016 | ||||
Company Name | State of Incorporation | DBAs | ||
PT Metro, LLC | DE | |||
Raintree Village II L.L.C. | IL | |||
Raintree Village L.L.C. | IL | |||
Ral-Len BM, LLC | DE | |||
Ral-Len, LLC | DE | |||
Renaissance Joint Venture | FL | |||
RES/CML 2009-1 CO-INVESTMENTS, LP | DE | |||
RES/CML INVESTMENTS, LLC | DE | |||
Reserve @ Pleasant Grove II LLC | NJ | Lennar | ||
Reserve @ Pleasant Grove LLC | NJ | |||
Reserve at River Park, LLC | NJ | |||
Reserve at South Harrison, LLC | NJ | |||
Rialto Capital Advisors of New York, LLC | DE | |||
Rialto Capital Advisors, LLC | DE | |||
Rialto Capital Management, LLC | DE | |||
Rialto Capital Partners, LLC | DE | |||
Rialto Capital Services, LLC | DE | |||
Rialto Capital Servicing, LLC | DE | |||
Rialto CMBS, LLC | DE | |||
Rialto Corporation | DE | |||
Rialto Holdings, LLC | DE | |||
Rialto Investments, LLC | DE | |||
RIALTO MEZZ HOLDINGS, LLC | DE | |||
Rialto Mezz Partners GP, LLC | DE | |||
Rialto Mortgage Finance, LLC | DE | |||
Rialto Mortgage Investments, LLC | DE | |||
Rialto Partners GP II, LLC | DE | |||
Rialto Partners GP, LLC | DE | |||
Rialto Property Management, Inc. | CA | |||
Rialto Property Management, LLC | DE | |||
Rialto REGI, LLC | FL | |||
Rialto RL CML 2009-1, LLC | DE | |||
Rialto RL RES 2009-1, LLC | DE | |||
Rivendell Joint Venture | FL | |||
Rivenhome Corporation | FL | |||
RL BB FINANCIAL, LLC | FL | |||
RL BB-SC CLR V, LLC | SC | |||
RL BB-SC CLR VI, LLC | SC | |||
RL CMBS Holdings, LLC | DE | |||
RL CMBS Investor, LLC | DE | |||
RL CML 2009-1 Investments, LLC | DE | |||
RL CML 2009-1, LLC | DE | |||
RL REGI FINANCIAL, LLC | FL |
LIST OF SUBSIDARIES AS OF NOVEMBER 30, 2016 | ||||
Company Name | State of Incorporation | DBAs | ||
RL RES 2009-1 Investments, LLC | DE | |||
RL RES 2009-1, LLC | DE | |||
RL-Regi-SC DDBS, LLC. | SC | |||
RMF Alliance, LLC | DE | |||
RMF Commercial, LLC | DE | |||
RMF Partner, LLC | DE | |||
RMF PR New York, LLC | DE | |||
RMF Sub 1, LLC | DE | |||
RMV, LLC | MD | |||
Rocking Horse Minerals, LLC | CO | |||
Rutenberg Homes of Texas, Inc. | TX | |||
Rutenberg Homes, Inc. | FL | |||
Rye Hill Company, LLC | NY | |||
S. Florida Construction II, LLC | FL | |||
S. Florida Construction III, LLC | FL | |||
S. Florida Construction, LLC | FL | |||
San Felipe Indemnity Co., Ltd. | Bermuda | |||
San Lucia, LLC | FL | |||
Santa Ana Transit Village, LLC | CA | |||
Savannah Development, Ltd. | TX | |||
Savell Gulley Development, LLC | TX | |||
SC 521 Indian Land Reserve South, LLC | DE | |||
SC 521 Indian Land Reserve, LLC | DE | |||
Scarsdale, LTD. | TX | |||
Schulz Ranch Developers, LLC | DE | |||
Seminole/70th, LLC | FL | |||
Siena at Old Orchard L.L.C. | IL | |||
SimplyTitle Company | FL | |||
South Development, LLC | FL | |||
Southbank Holding, LLC | FL | |||
Spanish Springs Development, LLC | NV | |||
St. Charles Active Adult Community, LLC | MD | |||
Stoney Corporation | FL | |||
Stoney Holdings, LLC | FL | |||
Stoneybrook Clubhouse, Inc. | FL | |||
Stoneybrook Joint Venture | FL | |||
Storey Lake Club, LLC | FL | |||
Storey Park Club, LLC | FL | |||
Strategic Holdings, Inc. | NV | Lennar Communications Ventures | ||
Strategic Technologies, LLC | FL | Strategic Cable Technologies - Texas, Inc. | ||
Summerfield Venture L.L.C. | IL | |||
Summerwood, LLC | MD | |||
SunStreet Energy Group, LLC | DE |
LIST OF SUBSIDARIES AS OF NOVEMBER 30, 2016 | ||||
Company Name | State of Incorporation | DBAs | ||
TCO QVI, LLC | DE | |||
Temecula Valley, LLC | DE | |||
Terra Division, LLC | MN | |||
The Baywinds Land Trust | FL | Baywinds Land Trust D/B/A Club Vineyards | ||
The Bridges at Rancho Santa Fe Sales Company, Inc. | CA | |||
The Bridges Club at Rancho Santa Fe, Inc. | CA | |||
The LNC Northeast Group, Inc. | DE | |||
The Oasis Club at LEN-CG South, LLC | DE | |||
The Preserve at Coconut Creek, LLC | FL | |||
The Vistas Club at LEN-CG South, LLC | FL | |||
Treasure Island Holdings, LLC | DE | |||
Treviso Holding, LLC | FL | |||
Two Lakes Lennar, LLC | DE | |||
U.S. Home Corporation | DE | Lennar | ||
U.S. Home Corporation | DE | Lennar Corporation | ||
U.S. Home of Arizona Construction Co. | AZ | |||
U.S. Home Realty, Inc. | TX | |||
U.S. Insurors, Inc. | FL | |||
U.S.H. Los Prados, Inc. | NV | |||
U.S.H. Realty, Inc. | VA | |||
Universal American Mortgage Company of California | CA | Eagle Home Mortgage of California | ||
Universal American Mortgage Company of California | CA | Eagle Home Mortgage | ||
Universal American Mortgage Company, LLC | FL | Universal American Mortgage Company | ||
Universal American Mortgage Company, LLC | FL | UAMC | ||
Universal American Mortgage Company, LLC | FL | Eagle Funding | ||
Universal American Mortgage Company, LLC | FL | UAMC d/b/a Eagle Home Mortgage | ||
Universal American Mortgage Company, LLC | FL | Eagle Home Mortgage of Washington | ||
Universal American Mortgage Company, LLC | FL | Eagle Funding of Washington | ||
Universal American Mortgage Company, LLC | FL | Eagle Home Mortgage | ||
Universal American Mortgage Company, LLC | FL | Eagle Home Mortgage of Oregon | ||
Universal American Mortgage Company, LLC | FL | Eagle Home Mortgage of Utah | ||
Universal American Mortgage Company, LLC | FL | Eagle Home Mortgage of Wyoming | ||
USH - Flag, LLC | FL | |||
USH Equity Corporation | NV | |||
USH Leasing, LLC | DE | |||
USH LEE, LLC | FL | |||
USH Woodbridge, Inc. | TX | |||
UST Lennar Collateral Sub, LLC | DE | |||
UST Lennar HW Scala SF Joint Venture, a Delaware general partnership | DE | |||
Valencia at Doral, LLC | FL | Valencia at Doral Club | ||
Venetian Lennar LLC | FL | |||
Vineyard Land, LLC | DE | |||
Vineyard Point 2009, LLC | CA | |||
Vista Palms Clubhouse, LLC | DE | |||
Waterview at Hanover, LLC | NJ |
LIST OF SUBSIDARIES AS OF NOVEMBER 30, 2016 | ||||
Company Name | State of Incorporation | DBAs | ||
WCP, LLC | SC | |||
West Chocolate Bayou Development, LLC | TX | |||
West Lake Village, LLC | NJ | |||
West Seattle Project X, LLC | DE | |||
West Van Buren L.L.C. | IL | |||
Westchase, Inc. | NV | |||
Westchase, Ltd. | TX | |||
White Course Lennar, LLC | FL | |||
Willowbrook Investors, LLC | NJ | |||
Winncrest Natomas, LLC | NV | |||
WIP Lennar OHB, LLC | NJ | |||
Woodbridge Multifamily Developer I, LLC | DE | |||
Wright Farm, L.L.C. | VA |
1. | I have reviewed this annual report on Form 10-K of Lennar Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
/S/ STUART MILLER | |
Name: Stuart Miller Title: Chief Executive Officer |
1. | I have reviewed this annual report on Form 10-K of Lennar Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
/S/ BRUCE GROSS | |
Name: Bruce Gross | |
Title: Vice President and Chief Financial Officer |
/S/ STUART MILLER | |
Name: Stuart Miller | |
Title: Chief Executive Officer | |
/S/ BRUCE GROSS | |
Name: Bruce Gross | |
Title: Vice President and Chief Financial Officer |
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Document And Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2016 |
Dec. 31, 2016 |
May 31, 2016 |
|
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Nov. 30, 2016 | ||
Document Fiscal Year Focus | 2016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | LENNAR CORP /NEW/ | ||
Entity Central Index Key | 0000920760 | ||
Current Fiscal Year End Date | --11-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 8,710,459,935 | ||
Class A Common Stock | |||
Entity Common Stock, Shares Outstanding | 203,190,098 | ||
Class B Common Stock | |||
Entity Common Stock, Shares Outstanding | 31,303,195 |
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands |
Nov. 30, 2016 |
Nov. 30, 2015 |
|||||
---|---|---|---|---|---|---|---|
ASSETS | |||||||
Cash and cash equivalents | $ 1,329,529 | $ 1,158,445 | |||||
Inventories: | |||||||
Total assets | [1] | 15,361,781 | 14,419,509 | ||||
LIABILITIES AND EQUITY | |||||||
Total liabilities | [2] | 8,150,214 | 8,469,437 | ||||
Stockholders’ equity: | |||||||
Preferred stock | [2] | 0 | 0 | ||||
Additional paid-in capital | [2] | 2,805,349 | 2,305,560 | ||||
Retained earnings | [2] | 4,306,256 | 3,429,736 | ||||
Treasury stock, at cost; 2016 - 917,449 shares of Class A common stock and 1,679,620 shares of Class B common stock; 2015 - 815,959 shares of Class A common stock and 1,679,620 shares of Class B common stock | [2] | (108,961) | (107,755) | ||||
Accumulated other comprehensive income (loss) | [2] | (309) | 39 | ||||
Total stockholders’ equity | [2] | 7,026,042 | 5,648,944 | ||||
Noncontrolling interests | [2] | 185,525 | 301,128 | ||||
Total equity | [2] | 7,211,567 | 5,950,072 | ||||
Total liabilities and equity | [2] | 15,361,781 | 14,419,509 | ||||
Class A Common Stock | |||||||
Stockholders’ equity: | |||||||
Common stock | [2] | 20,409 | 18,066 | ||||
Class B Common Stock | |||||||
Stockholders’ equity: | |||||||
Common stock | [2] | 3,298 | 3,298 | ||||
Lennar Homebuilding | |||||||
ASSETS | |||||||
Cash and cash equivalents | [1] | 1,050,138 | 893,408 | ||||
Restricted cash | [1] | 5,977 | 13,505 | ||||
Receivables, net | [1] | 106,976 | 74,538 | ||||
Inventories: | |||||||
Finished homes and construction in progress | [1] | 3,951,716 | 3,957,167 | ||||
Land and land under development | [1] | 5,106,191 | 4,724,578 | ||||
Consolidated inventory not owned | [1] | 121,019 | 58,851 | ||||
Total inventories | [1] | 9,178,926 | 8,740,596 | ||||
Investments in unconsolidated entities | [1] | 811,723 | 741,551 | ||||
Other assets | [1] | 651,028 | 609,222 | ||||
Total assets | [1] | 11,804,768 | 11,072,820 | ||||
LIABILITIES AND EQUITY | |||||||
Accounts payable | [2] | 478,546 | 475,909 | ||||
Liabilities related to consolidated inventory not owned | [2] | 110,006 | 51,431 | ||||
Senior notes and other debts payable | [2] | 4,575,977 | 5,025,130 | ||||
Other liabilities | [2] | 841,449 | 899,815 | ||||
Total liabilities | [2] | 6,005,978 | 6,452,285 | ||||
Rialto | |||||||
ASSETS | |||||||
Cash and cash equivalents | 148,827 | 150,219 | |||||
Restricted cash | 9,935 | 15,061 | |||||
Receivables, net | 204,518 | 154,948 | |||||
Inventories: | |||||||
Investments in unconsolidated entities | 245,741 | 224,869 | |||||
Other assets | 113,671 | 116,908 | |||||
Total assets | [1] | 1,276,210 | 1,505,500 | ||||
LIABILITIES AND EQUITY | |||||||
Other liabilities | 85,645 | 94,496 | |||||
Total liabilities | [2] | 707,980 | 866,224 | ||||
Lennar Financial Services | |||||||
ASSETS | |||||||
Cash and cash equivalents | 123,964 | 106,777 | |||||
Restricted cash | 17,053 | 13,961 | |||||
Receivables, net | 409,528 | 242,808 | |||||
Inventories: | |||||||
Other assets | 99,319 | 66,186 | |||||
Total assets | [1] | 1,754,672 | 1,425,837 | ||||
LIABILITIES AND EQUITY | |||||||
Other liabilities | 241,055 | 225,678 | |||||
Total liabilities | [2] | 1,318,283 | 1,083,978 | ||||
Lennar Multifamily | |||||||
ASSETS | |||||||
Cash and cash equivalents | 6,600 | 8,041 | |||||
Receivables, net | 58,929 | 33,480 | |||||
Inventories: | |||||||
Land and land under development | 139,713 | 115,982 | |||||
Consolidated inventory not owned | 0 | 5,508 | |||||
Investments in unconsolidated entities | 318,559 | 250,876 | |||||
Other assets | 2,330 | 1,465 | |||||
Total assets | [1] | 526,131 | 415,352 | ||||
LIABILITIES AND EQUITY | |||||||
Liabilities related to consolidated inventory not owned | 0 | 4,007 | |||||
Total liabilities | [2] | $ 117,973 | $ 66,950 | ||||
|
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Nov. 30, 2016 |
Nov. 30, 2015 |
|||||
---|---|---|---|---|---|---|---|
Total assets | [1] | $ 15,361,781 | $ 14,419,509 | ||||
Cash and cash equivalents | 1,329,529 | 1,158,445 | |||||
Total liabilities | [2] | $ 8,150,214 | $ 8,469,437 | ||||
Class A Common Stock | |||||||
Common stock, par value (in USD per share) | $ 0.10 | $ 0.10 | |||||
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 | |||||
Common stock, shares issued (in shares) | 204,089,447 | 180,658,550 | |||||
Treasury stock, shares (in shares) | 917,449 | 815,959 | |||||
Class B Common Stock | |||||||
Common stock, par value (in USD per share) | $ 0.10 | $ 0.10 | |||||
Common stock, shares authorized (in shares) | 90,000,000 | 90,000,000 | |||||
Common stock, shares issued (in shares) | 32,982,815 | 32,982,815 | |||||
Treasury stock, shares (in shares) | 1,679,620 | 1,679,620 | |||||
Lennar Homebuilding | |||||||
Total assets | [1] | $ 11,804,768 | $ 11,072,820 | ||||
Cash and cash equivalents | [1] | 1,050,138 | 893,408 | ||||
Receivables, net | [1] | 106,976 | 74,538 | ||||
Finished homes and construction in progress | [1] | 3,951,716 | 3,957,167 | ||||
Land and land under development | [1] | 5,106,191 | 4,724,578 | ||||
Consolidated inventory not owned | [1] | 121,019 | 58,851 | ||||
Investments in unconsolidated entities | [1] | 811,723 | 741,551 | ||||
Other | [1] | 651,028 | 609,222 | ||||
Total liabilities | [2] | 6,005,978 | 6,452,285 | ||||
Accounts payable | [2] | 478,546 | 475,909 | ||||
Liabilities related to consolidated inventory not owned | [2] | 110,006 | 51,431 | ||||
Other liabilities | [2] | 841,449 | 899,815 | ||||
Rialto | |||||||
Total assets | [1] | 1,276,210 | 1,505,500 | ||||
Cash and cash equivalents | 148,827 | 150,219 | |||||
Receivables, net | 204,518 | 154,948 | |||||
Investments in unconsolidated entities | 245,741 | 224,869 | |||||
Other | 113,671 | 116,908 | |||||
Total liabilities | [2] | 707,980 | 866,224 | ||||
Other liabilities | 85,645 | 94,496 | |||||
Lennar Multifamily | |||||||
Total assets | [1] | 526,131 | 415,352 | ||||
Cash and cash equivalents | 6,600 | 8,041 | |||||
Receivables, net | 58,929 | 33,480 | |||||
Land and land under development | 139,713 | 115,982 | |||||
Consolidated inventory not owned | 0 | 5,508 | |||||
Investments in unconsolidated entities | 318,559 | 250,876 | |||||
Other | 2,330 | 1,465 | |||||
Total liabilities | [2] | 117,973 | 66,950 | ||||
Liabilities related to consolidated inventory not owned | 0 | 4,007 | |||||
Variable Interest Entity, Primary Beneficiary | |||||||
Total assets | 536,300 | 652,300 | |||||
Total liabilities | 126,400 | 84,400 | |||||
Variable Interest Entity, Primary Beneficiary | Lennar Homebuilding | |||||||
Cash and cash equivalents | 13,300 | 9,600 | |||||
Receivables, net | 200 | 500 | |||||
Finished homes and construction in progress | 54,200 | 3,900 | |||||
Land and land under development | 106,300 | 154,200 | |||||
Consolidated inventory not owned | 121,000 | 58,900 | |||||
Investments in unconsolidated entities | 4,600 | 35,800 | |||||
Other | 13,900 | 22,700 | |||||
Accounts payable | 3,600 | 2,000 | |||||
Liabilities related to consolidated inventory not owned | 110,000 | 51,400 | |||||
Other liabilities | 2,500 | 15,600 | |||||
Variable Interest Entity, Primary Beneficiary | Rialto | |||||||
Total assets | 213,800 | 355,200 | |||||
Total liabilities | 10,300 | 11,300 | |||||
Variable Interest Entity, Primary Beneficiary | Lennar Multifamily | |||||||
Total assets | $ 8,800 | 11,500 | |||||
Total liabilities | $ 4,000 | ||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2016 |
Aug. 31, 2016 |
May 31, 2016 |
Feb. 29, 2016 |
Nov. 30, 2015 |
Aug. 31, 2015 |
May 31, 2015 |
Feb. 28, 2015 |
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Revenues: | |||||||||||
Total revenues | $ 3,376,626 | $ 2,833,894 | $ 2,745,815 | $ 1,993,664 | $ 2,945,567 | $ 2,491,698 | $ 2,392,604 | $ 1,644,139 | $ 10,949,999 | $ 9,474,008 | $ 7,779,812 |
Cost and expenses: | |||||||||||
Corporate general and administrative | 232,562 | 216,244 | 177,161 | ||||||||
Total costs and expenses | 9,687,636 | 8,387,992 | 6,857,774 | ||||||||
Equity in earnings (loss) from unconsolidated entities | 55,205 | 105,184 | 73,376 | ||||||||
Other interest expense | (4,626) | (12,454) | (36,551) | ||||||||
Earnings (loss) before income taxes | 461,379 | 339,558 | 327,839 | 201,693 | 432,505 | 320,658 | 279,810 | 176,643 | 1,330,469 | 1,209,616 | 969,784 |
Provision for income taxes | (417,378) | (390,416) | (341,091) | ||||||||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | 913,091 | 819,200 | 628,693 | ||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | 1,247 | 16,306 | (10,223) | ||||||||
Net earnings attributable to Lennar | $ 313,453 | $ 235,842 | $ 218,469 | $ 144,080 | $ 281,603 | $ 223,312 | $ 183,016 | $ 114,963 | 911,844 | 802,894 | 638,916 |
Other comprehensive income, net of tax: | |||||||||||
Net unrealized gain (loss) on securities available-for-sale | (295) | (65) | 130 | ||||||||
Reclassification adjustments for gains included in net earnings | (53) | (26) | 0 | ||||||||
Other comprehensive income attributable to Lennar | 911,496 | 802,803 | 639,046 | ||||||||
Other comprehensive income (loss) attributable to noncontrolling interests | $ 1,247 | $ 16,306 | $ (10,223) | ||||||||
Basic earnings per share (in USD per share) | $ 1.37 | $ 1.04 | $ 1.01 | $ 0.68 | $ 1.34 | $ 1.07 | $ 0.89 | $ 0.56 | $ 4.13 | $ 3.87 | $ 3.12 |
Diluted earnings per share (in USD per share) | $ 1.34 | $ 1.01 | $ 0.95 | $ 0.63 | $ 1.21 | $ 0.96 | $ 0.79 | $ 0.50 | $ 3.93 | $ 3.46 | $ 2.80 |
Lennar Homebuilding | |||||||||||
Revenues: | |||||||||||
Total revenues | $ 9,741,337 | $ 8,466,945 | $ 7,025,130 | ||||||||
Cost and expenses: | |||||||||||
Costs and expenses | 8,399,881 | 7,264,839 | 5,962,029 | ||||||||
Equity in earnings (loss) from unconsolidated entities | (49,275) | 63,373 | (355) | ||||||||
Other income (expense), net | 57,377 | 18,616 | 7,526 | ||||||||
Other interest expense | (245,061) | (220,147) | (201,539) | ||||||||
Lennar Financial Services | |||||||||||
Revenues: | |||||||||||
Total revenues | 687,255 | 620,527 | 454,381 | ||||||||
Cost and expenses: | |||||||||||
Costs and expenses | 523,638 | 492,732 | 374,243 | ||||||||
Rialto | |||||||||||
Revenues: | |||||||||||
Total revenues | 233,966 | 221,923 | 230,521 | ||||||||
Cost and expenses: | |||||||||||
Costs and expenses | 229,769 | 222,875 | 249,114 | ||||||||
Equity in earnings (loss) from unconsolidated entities | 18,961 | 22,293 | 59,277 | ||||||||
Other income (expense), net | (39,850) | 12,254 | 3,395 | ||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | (18,800) | 4,800 | (22,500) | ||||||||
Lennar Multifamily | |||||||||||
Revenues: | |||||||||||
Total revenues | 287,441 | 164,613 | 69,780 | ||||||||
Cost and expenses: | |||||||||||
Costs and expenses | 301,786 | 191,302 | 95,227 | ||||||||
Equity in earnings (loss) from unconsolidated entities | $ 85,519 | $ 19,518 | $ 14,454 |
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Class A Common Stock | |||
Cash dividends (in USD per share) | $ 0.16 | $ 0.16 | $ 0.16 |
Class B Common Stock | |||
Cash dividends (in USD per share) | $ 0.16 | $ 0.16 | $ 0.16 |
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
||||
Cash flows from operating activities: | ||||||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | $ 913,091 | $ 819,200 | $ 628,693 | |||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||||
Depreciation and amortization | 50,219 | 43,666 | 38,542 | |||
Amortization of discount/premium on debt, net | 14,619 | 19,874 | 21,387 | |||
Equity in earnings from unconsolidated entities | (55,205) | (105,184) | (73,376) | |||
Distributions of earnings from unconsolidated entities | 101,965 | 60,753 | 22,251 | |||
Share-based compensation expense | 55,516 | 43,873 | 40,718 | |||
Excess tax benefits from share-based awards | (7,039) | (113) | (7,497) | |||
Deferred income tax expense (benefit) | 97,485 | (5,637) | 75,324 | |||
Loss (gain) on retirement of debt and notes payable | 1,569 | 3,632 | (4,555) | |||
Gain on sale of operating properties and equipment | (14,457) | (5,945) | 0 | |||
Unrealized and realized gains on real estate owned | (21,380) | (36,380) | (36,901) | |||
Impairments of loans receivable and real estate owned | 45,201 | 25,179 | 76,450 | |||
Valuation adjustments and write-offs of option deposits and pre-acquisition costs, other receivables and other assets | 11,283 | 31,002 | 13,088 | |||
Changes in assets and liabilities: | ||||||
Decrease (increase) in restricted cash | 9,716 | 20,876 | (18,930) | |||
Increase in receivables | (260,844) | (86,432) | (113,001) | |||
Increase in inventories, excluding valuation adjustments and write-offs of option deposits and pre-acquisition costs | (503,527) | (1,126,907) | (1,367,415) | |||
Increase in other assets | (41,933) | (28,154) | (13,990) | |||
Decrease (increase) in loans held-for-sale | 90,093 | (318,739) | (395,363) | |||
Increase in accounts payable and other liabilities | 21,432 | 225,790 | 326,087 | |||
Net cash provided by (used in) operating activities | 507,804 | (419,646) | (788,488) | |||
Cash flows from investing activities: | ||||||
Increase in restricted cash related to LOCs | 0 | 2,030 | 37 | |||
Net additions to operating properties and equipment | (76,439) | (91,355) | (22,599) | |||
Proceeds from the sale of operating properties and equipment | 25,288 | 73,732 | 43,937 | |||
Investments in and contributions to unconsolidated entities | (425,761) | (314,937) | (159,783) | |||
Distributions of capital from unconsolidated entities | 323,190 | 218,996 | 279,306 | |||
Proceeds from sales of real estate owned | 97,871 | 155,295 | 269,698 | |||
Improvements to real estate owned | (1,906) | (8,477) | (14,278) | |||
Receipts of principal payments on loans receivable and other | 84,433 | 28,389 | 24,019 | |||
Purchases of loans receivable and real estate owned | (548) | (3,228) | 0 | |||
Originations of loans receivable | (56,507) | (78,703) | (7,000) | |||
Purchase of investment carried at cost | 0 | (18,000) | 0 | |||
Purchases of commercial mortgage-backed securities bond | (42,436) | (13,973) | (8,705) | |||
Proceeds from sale of commercial mortgage-backed securities bond | 0 | 7,014 | 9,171 | |||
Acquisitions, net of cash acquired | (725) | 0 | (5,489) | |||
Purchases of Lennar Homebuilding investments available-for-sale | 0 | (28,093) | (21,274) | |||
Proceeds from sales of Lennar Homebuilding investments available-for-sale | 541 | 0 | 51,934 | |||
Decrease (increase) in Lennar Financial Services held-for-investment, net | 963 | (5,022) | 1,102 | |||
Purchases of Lennar Financial Services investment securities | (37,764) | (45,687) | (40,627) | |||
Proceeds from maturities/sales of Lennar Financial Services investment securities | 23,963 | 23,626 | 38,910 | |||
Net cash (used in) provided by investing activities | (85,837) | (98,393) | 438,359 | |||
Cash flows from financing activities: | ||||||
Net borrowings under warehouse facilities | 107,465 | 366,290 | 389,535 | |||
Proceeds from senior notes | 499,024 | 1,146,647 | 955,025 | |||
Debt issuance costs | (4,740) | (11,807) | (9,989) | |||
Redemption of senior notes | (250,000) | (500,000) | (250,000) | |||
Conversions and exchanges on convertible senior notes | (234,028) | (212,107) | 0 | |||
Proceeds from other borrowings | 37,163 | 101,618 | 34,424 | |||
Principal payments on other borrowings | (210,968) | (258,108) | (299,713) | |||
Exercise of land option contracts from an unconsolidated land investment venture | 0 | 0 | (1,540) | |||
Receipts related to noncontrolling interests | 353 | 1,296 | 12,859 | |||
Payments related to noncontrolling interests | (127,410) | (133,374) | (155,625) | |||
Excess tax benefits from share-based awards | 7,039 | 113 | 7,497 | |||
Common stock: | ||||||
Issuances | 19,471 | 9,405 | 13,599 | |||
Repurchases | (19,902) | (23,188) | (20,424) | |||
Dividends | (35,324) | (33,192) | (32,775) | |||
Net cash (used in) provided by financing activities | (250,883) | 394,670 | 661,438 | |||
Net increase (decrease) in cash and cash equivalents | 171,084 | (123,369) | 311,309 | |||
Summary of cash and cash equivalents: | ||||||
Cash and cash equivalents at beginning of year | 1,158,445 | 1,281,814 | 970,505 | |||
Cash and cash equivalents at end of year | 1,329,529 | 1,158,445 | 1,281,814 | |||
Supplemental disclosures of cash flow information: | ||||||
Cash paid for interest, net of amounts capitalized | 66,570 | 87,132 | 68,366 | |||
Cash paid for income taxes, net | 374,731 | 336,796 | 202,374 | |||
Consolidation/deconsolidation of unconsolidated/consolidated entities, net: | ||||||
Inventories | 111,347 | 0 | 155,021 | |||
Operating properties and equipment and other assets | 0 | (17,421) | (7,218) | |||
Investments in unconsolidated entities | (2,445) | 2,948 | (30,647) | |||
Liabilities related to consolidated inventory not owned | (96,424) | 0 | 0 | |||
Other liabilities | 0 | 1,220 | 0 | |||
Noncontrolling interests | (12,478) | 13,253 | (117,156) | |||
Lennar Homebuilding | ||||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||||
Equity in earnings from unconsolidated entities | 49,275 | (63,373) | 355 | |||
Summary of cash and cash equivalents: | ||||||
Cash and cash equivalents at beginning of year | [1] | 893,408 | ||||
Cash and cash equivalents at end of year | [1] | 1,050,138 | 893,408 | |||
Lennar Homebuilding | Operating Segments | ||||||
Summary of cash and cash equivalents: | ||||||
Cash and cash equivalents at beginning of year | 893,408 | 885,729 | ||||
Cash and cash equivalents at end of year | 1,050,138 | 893,408 | 885,729 | |||
Rialto | ||||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||||
Equity in earnings from unconsolidated entities | (18,961) | (22,293) | (59,277) | |||
Unrealized and realized gains on real estate owned | (17,495) | (35,242) | (43,671) | |||
Cash flows from financing activities: | ||||||
Proceeds from Rialto structured notes | 0 | 0 | 94,444 | |||
Principal payments on Rialto notes payable including structured notes | (39,026) | (58,923) | (75,879) | |||
Summary of cash and cash equivalents: | ||||||
Cash and cash equivalents at beginning of year | 150,219 | |||||
Cash and cash equivalents at end of year | 148,827 | 150,219 | ||||
Rialto: | ||||||
Real estate owned acquired in satisfaction/partial satisfaction of loans receivable | 8,476 | 17,248 | 57,390 | |||
Non-cash acquisition of Servicer Provider | 0 | 0 | 8,317 | |||
Rialto | Operating Segments | ||||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||||
Equity in earnings from unconsolidated entities | (18,961) | (22,293) | (59,277) | |||
Summary of cash and cash equivalents: | ||||||
Cash and cash equivalents at beginning of year | 150,219 | 303,889 | ||||
Cash and cash equivalents at end of year | 148,827 | 150,219 | 303,889 | |||
Lennar Financial Services | ||||||
Summary of cash and cash equivalents: | ||||||
Cash and cash equivalents at beginning of year | 106,777 | |||||
Cash and cash equivalents at end of year | 123,964 | 106,777 | ||||
Lennar Financial Services: | ||||||
Purchase of mortgage servicing rights financed by seller | 0 | 0 | 5,697 | |||
Lennar Financial Services | Operating Segments | ||||||
Summary of cash and cash equivalents: | ||||||
Cash and cash equivalents at beginning of year | 106,777 | 90,010 | ||||
Cash and cash equivalents at end of year | 123,964 | 106,777 | 90,010 | |||
Lennar Multifamily | ||||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||||
Equity in earnings from unconsolidated entities | (85,519) | (19,518) | (14,454) | |||
Summary of cash and cash equivalents: | ||||||
Cash and cash equivalents at beginning of year | 8,041 | |||||
Cash and cash equivalents at end of year | 6,600 | 8,041 | ||||
Lennar Multifamily | Operating Segments | ||||||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||||||
Equity in earnings from unconsolidated entities | (85,519) | (19,518) | (14,454) | |||
Summary of cash and cash equivalents: | ||||||
Cash and cash equivalents at beginning of year | 8,041 | 2,186 | ||||
Cash and cash equivalents at end of year | 6,600 | 8,041 | 2,186 | |||
Lennar Homebuilding and Lennar Multifamily | ||||||
Lennar Homebuilding and Lennar Multifamily: | ||||||
Purchases of inventories, land under development and other assets financed by sellers | 101,504 | 66,819 | 129,881 | |||
Net non-cash contributions to unconsolidated entities | 107,935 | 205,327 | 106,132 | |||
Conversion of convertible senior notes to equity | 399,206 | 0 | 0 | |||
Inventory acquired in satisfaction of other assets including investments available-for-sale | 0 | 28,093 | 0 | |||
Inventory acquired in partner buyout | 0 | 64,440 | 0 | |||
Non-cash sale of operating properties and equipment | $ 0 | $ (59,397) | $ 0 | |||
|
Summary Of Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Consolidation The accompanying consolidated financial statements include the accounts of Lennar Corporation and all subsidiaries, partnerships and other entities in which Lennar Corporation has a controlling interest and VIEs (see Note 15) in which Lennar Corporation is deemed the primary beneficiary (the "Company"). The Company’s investments in both unconsolidated entities in which a significant, but less than controlling, interest is held and in VIEs in which the Company is not deemed to be the primary beneficiary are accounted for by the equity method. All intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Revenue Recognition Revenues from sales of homes are recognized when the sales are closed and title passes to the new homeowner, the new homeowner’s initial and continuing investment is adequate to demonstrate a commitment to pay for the home, the new homeowner’s receivable is not subject to future subordination and the Company does not have a substantial continuing involvement with the new home. Revenues from sales of land are recognized when a significant down payment is received, the earnings process is complete, title passes and collectability of the receivable is reasonably assured. See Lennar Financial Services, Rialto and Lennar Multifamily within this Note for disclosure of other revenue recognition policies related to those segments. Advertising Costs The Company expenses advertising costs as incurred. Advertising costs were $40.9 million, $47.9 million and $45.2 million for the years ended November 30, 2016, 2015 and 2014, respectively. Share-Based Payments The Company has share-based awards outstanding under the 2007 Equity Incentive Plan and the 2016 Equity Incentive Plan (the "Plans"), each of which provides for the granting of stock options, stock appreciation rights, restricted common stock ("nonvested shares") and other share based awards to officers, associates and directors. The exercise prices of stock options may not be less than the market value of the common stock on the date of the grant. Exercises are permitted in installments determined when options are granted. Each stock option will expire on a date determined at the time of the grant, but not more than ten years after the date of the grant. The Company accounts for stock option awards and nonvested share awards granted under the Plans based on the estimated grant date fair value. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Due to the short maturity period of cash equivalents, the carrying amounts of these instruments approximate their fair values. Cash and cash equivalents as of November 30, 2016 and 2015 included $460.5 million and $414.9 million, respectively, of cash held in escrow for approximately 3 days. Restricted Cash Lennar Homebuilding restricted cash consists of customer deposits on home sales held in restricted accounts until title transfers to the homebuyer, as required by the state and local governments in which the homes were sold, as well as funds on deposit to secure and support performance obligations. Rialto restricted cash primarily consists of upfront deposits and application fees Rialto Mortgage Finance ("RMF") receives before originating loans and is recognized as income once the loan has been originated as well as cash held in escrow by the Company’s loan servicer provider on behalf of customers and lenders and is disbursed in accordance with agreements between the transacting parties. Inventories Finished homes and construction in progress are included within inventories. Inventories are stated at cost unless the inventory within a community is determined to be impaired, in which case the impaired inventory is written down to fair value. Inventory costs include land, land development and home construction costs, real estate taxes, deposits on land purchase contracts and interest related to development and construction. Construction overhead and selling expenses are expensed as incurred. Homes held-for-sale are classified as inventories until delivered. Land, land development, amenities and other costs are accumulated by specific area and allocated to homes within the respective areas. The Company reviews its inventory for indicators of impairment by evaluating each community during each reporting period. The inventory within each community is categorized as finished homes and construction in progress or land under development based on the development state of the community. There were 693 and 662 active communities, excluding unconsolidated entities, as of November 30, 2016 and 2015, respectively. If the undiscounted cash flows expected to be generated by a community are less than its carrying amount, an impairment charge is recorded to write down the carrying amount of such community to its estimated fair value. In conducting its review for indicators of impairment on a community level, the Company evaluates, among other things, the margins on homes that have been delivered, margins on homes under sales contracts in backlog, projected margins with regard to future home sales over the life of the community, projected margins with regard to future land sales and the estimated fair value of the land itself. The Company pays particular attention to communities in which inventory is moving at a slower than anticipated absorption pace and communities whose average sales price and/or margins are trending downward and are anticipated to continue to trend downward. From this review, the Company identifies communities in which to assess if the carrying values exceed their undiscounted projected cash flows. The Company estimates the fair value of its communities using a discounted cash flow model. The projected cash flows for each community are significantly impacted by estimates related to market supply and demand, product type by community, homesite sizes, sales pace, sales prices, sales incentives, construction costs, sales and marketing expenses, the local economy, competitive conditions, labor costs, costs of materials and other factors for that particular community. Every division evaluates the historical performance of each of its communities as well as current trends in the market and economy impacting the community and its surrounding areas. These trends are analyzed for each of the estimates listed above. Each of the homebuilding markets in which the Company operates is unique, as homebuilding has historically been a local business driven by local market conditions and demographics. Each of the Company’s homebuilding markets has specific supply and demand relationships reflective of local economic conditions. The Company’s projected cash flows are impacted by many assumptions. Some of the most critical assumptions in the Company’s cash flow model are projected absorption pace for home sales, sales prices and costs to build and deliver homes on a community by community basis. In order to arrive at the assumed absorption pace for home sales and the assumed sales prices included in the Company’s cash flow model, the Company analyzes its historical absorption pace and historical sales prices in the community and in other comparable communities in the geographical area. In addition, the Company considers internal and external market studies and places greater emphasis on more current metrics and trends, which generally include, but are not limited to, statistics and forecasts on population demographics and on sales prices in neighboring communities, unemployment rates and availability and sales prices of competing product in the geographical area where the community is located as well as the absorption pace realized in its most recent quarters and the sales prices included in the Company's current backlog for such communities. Generally, if the Company notices a variation from historical results over a span of two fiscal quarters, the Company considers such variation to be the establishment of a trend and adjusts its historical information accordingly in order to develop assumptions on the projected absorption pace and sales prices in the cash flow model for a community. In order to arrive at the Company’s assumed costs to build and deliver homes, the Company generally assumes a cost structure reflecting contracts currently in place with its vendors adjusted for any anticipated cost reduction initiatives or increases in cost structure. Those costs assumed are used in the cash flow model for the Company’s communities. Since the estimates and assumptions included in the Company’s cash flow models are based upon historical results and projected trends, they do not anticipate unexpected changes in market conditions or strategies that may lead the Company to incur additional impairment charges in the future. The determination of fair value requires discounting the estimated cash flows at a rate the Company believes a market participant would determine to be commensurate with the inherent risks associated with the assets and related estimated cash flow streams. The discount rate used in determining each asset’s fair value depends on the community’s projected life and development stage. The Company generally uses a discount rate of approximately 20%, subject to the perceived risks associated with the community’s cash flow streams relative to its inventory. The Company estimates the fair value of inventory evaluated for impairment based on market conditions and assumptions made by management at the time the inventory is evaluated, which may differ materially from actual results if market conditions or assumptions change. For example, changes in market conditions and other specific developments or changes in assumptions may cause the Company to re-evaluate its strategy regarding previously impaired inventory, as well as inventory not currently impaired but for which indicators of impairment may arise if market deterioration occurs, and certain other assets that could result in further valuation adjustments and/or additional write-offs of option deposits and pre-acquisition costs due to abandonment of those options contracts. As of November 30, 2016, the Company reviewed its communities for potential indicators of impairments and identified 11 homebuilding communities with 663 homesites and a carrying value of $180.9 million as having potential indicators of impairment. For the year ended November 30, 2016, the Company recorded no valuation adjustments. As of November 30, 2015, the Company reviewed its communities for potential indicators of impairments and identified 13 homebuilding communities with 931 homesites and a carrying value of $121.7 million as having potential indicators of impairment. Of those communities, the Company recorded valuation adjustments of $8.1 million on 209 homesites in five communities with a carrying value of $19.4 million. 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, 2015 and 2014:
The Company also has access to land inventory through option contracts, which generally enables the Company to defer acquiring portions of properties owned by third parties and unconsolidated entities until it has determined whether to exercise its option. A majority of the Company’s option contracts require a non-refundable cash deposit or irrevocable letter of credit based on a percentage of the purchase price of the land. The Company’s option contracts sometimes include price adjustment provisions, which adjust the purchase price of the land to its approximate fair value at the time of acquisition or are based on the fair value at the time of takedown. In determining whether to walk away from an option contract, the Company evaluates the option primarily based upon its expected cash flows from the property under option. If the Company intends to walk away from an option contract, it records a charge to earnings in the period such decision is made for the deposit amount and any related pre-acquisition costs associated with the option contract. Some option contracts contain a predetermined take-down schedule for the optioned land parcels. However, in almost all instances, the Company is not required to purchase land in accordance with those take-down schedules. In substantially all instances, the Company has the right and ability to not exercise its option and forfeit its deposit without further penalty, other than termination of the option and loss of any unapplied portion of its deposit and pre-acquisition costs. Therefore, in substantially all instances, the Company does not consider the take-down price to be a firm contractual obligation. When the Company does not intend to exercise an option, it writes off any unapplied deposit and pre-acquisition costs associated with the option contract. Lennar Homebuilding and Lennar Multifamily Investments in Unconsolidated Entities The Company evaluates the long-lived assets in unconsolidated entities for indicators of impairment during each reporting period. If a valuation adjustment is recorded by an unconsolidated entity related to its assets, the Company generally uses a discount rate between 10% and 20%, subject to the perceived risks associated with the community’s cash flow streams relative to its inventory or operating assets. The Company’s proportionate share of a valuation adjustment is reflected in the Company's Lennar Homebuilding or Lennar Multifamily equity in earnings (loss) from unconsolidated entities with a corresponding decrease to its Lennar Homebuilding or Lennar Multifamily investment in unconsolidated entities. Additionally, the Company evaluates if a decrease in the value of an investment below its carrying value is other-than-temporary. This evaluation includes certain critical assumptions made by management: (1) projected future distributions from the unconsolidated entities, (2) discount rates applied to the future distributions and (3) various other factors, which include age of the venture, relationships with the other partners and banks, general economic market conditions, land status and liquidity needs of the unconsolidated entity. If the decline in the fair value of the investment is other-than-temporary, then these losses are included in Lennar Homebuilding other income, net or Lennar Multifamily costs and expenses. The Company tracks its share of cumulative earnings and distributions of its joint ventures ("JVs"). For purposes of classifying distributions received from JVs in the Company’s consolidated statements of cash flows, cumulative distributions are treated as returns on capital to the extent of cumulative earnings and included in the Company’s consolidated statements of cash flows as operating activities. Cumulative distributions in excess of the Company’s share of cumulative earnings are treated as returns of capital and included in the Company’s consolidated statements of cash flows as cash from investing activities. Consolidation of Variable Interest Entities GAAP requires the consolidation of VIEs in which an enterprise has a controlling financial interest. A controlling financial interest will have both of the following characteristics: (a) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company’s variable interest in VIEs may be in the form of (1) equity ownership, (2) contracts to purchase assets, (3) management and development agreements between the Company and a VIE, (4) loans provided by the Company to a VIE or other partner and/or (5) guarantees provided by members to banks and other third parties. The Company examines specific criteria and uses its judgment when determining if it is the primary beneficiary of a VIE. Factors considered in determining whether the Company is the primary beneficiary include risk and reward sharing, experience and financial condition of other partner(s), voting rights, involvement in day-to-day capital and operating decisions, representation on a VIE’s executive committee, existence of unilateral kick-out rights or voting rights, level of economic disproportionality, if any, between the Company and the other partner(s) and contracts to purchase assets from VIEs. The determination whether an entity is a VIE and, if so, whether the Company is the primary beneficiary may require it to exercise significant judgment. Generally, all major decision making in the Company’s joint ventures is shared among all partners. In particular, business plans and budgets are generally required to be unanimously approved by all partners. Usually, management and other fees earned by the Company are nominal and believed to be at market and there is no significant economic disproportionality between the Company and other partners. Generally, the Company purchases less than a majority of the JV’s assets and the purchase prices under its option contracts are believed to be at market. Generally, Lennar Homebuilding and Lennar Multifamily unconsolidated entities become VIEs and consolidate when the other partner(s) lack the intent and financial wherewithal to remain in the entity. As a result, the Company continues to fund operations and debt paydowns through partner loans or substituted capital contributions. Operating Properties and Equipment Operating properties and equipment are recorded at cost and are included in other assets in the consolidated balance sheets. The assets are depreciated over their estimated useful lives using the straight-line method. At the time operating properties and equipment are disposed of, the asset and related accumulated depreciation are removed from the accounts and any resulting gain or loss is credited or charged to earnings. The estimated useful life for operating properties is 30 years, for furniture, fixtures and equipment is two to ten years and for leasehold improvements is five years or the life of the lease, whichever is shorter. Operating properties are reviewed for possible impairment if there are indicators that their carrying amounts are not recoverable. Investment Securities Investment securities are classified as available-for-sale unless they are classified as trading or held-to-maturity. Securities classified as trading are carried at fair value and unrealized holding gains and losses are recorded in earnings. Available-for-sale securities are recorded at fair value. Any unrealized holding gains or losses on available-for-sale securities are reported as accumulated other comprehensive gain or loss, which is a separate component of stockholders’ equity, net of tax, until realized. Securities classified as held-to-maturity are carried at amortized cost because they are purchased with the intent and ability to hold to maturity. At November 30, 2016 and 2015, the Lennar Financial Services segment had investment securities classified as held-to-maturity totaling $42.0 million and $40.2 million, respectively, which consist mainly of corporate debt obligations, U.S. government agency obligations, certificates of deposit and U.S. treasury securities that mature at various dates, mainly within five years. Also, at November 30, 2016 and 2015, the Lennar Financial Services segment had available-for-sale securities totaling $53.6 million and $42.8 million, respectively, which consist primarily of preferred stock and mutual funds. These investments available-for-sale are carried at fair value with changes recorded as a component of accumulated other comprehensive income (loss). In addition, at November 30, 2016 and 2015, the Rialto segment had investment securities classified as held-to-maturity totaling $71.3 million and $25.6 million, respectively. The Rialto segment held-to-maturity securities consist of commercial mortgage-backed securities ("CMBS"). At both November 30, 2016 and 2015, the Company had no investment securities classified as trading. Interest and Real Estate Taxes Interest and real estate taxes attributable to land and homes are capitalized as inventory costs while they are being actively developed. Interest related to homebuilding and land, including interest costs relieved from inventories, is included in costs of homes sold and costs of land sold. Interest expense related to the Lennar Financial Services operations is included in its costs and expenses. During the years ended November 30, 2016, 2015 and 2014, interest incurred by the Company’s homebuilding operations related to homebuilding debt was $281.4 million, $288.5 million and $273.4 million, respectively; interest capitalized into inventories was $276.8 million, $276.1 million and $236.9 million, respectively. Interest expense was included in costs of homes sold, costs of land sold and other interest expense as follows:
Income Taxes The Company records income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and attributable to operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which the temporary differences are expected to be recovered or paid. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period when the changes are enacted. Interest related to unrecognized tax benefits is recognized in the financial statements as a component of income tax expense. A reduction of the carrying amounts of deferred tax assets by a valuation allowance is required if, based on the available evidence, it is more likely than not that such assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed each reporting period by the Company based on the consideration of all available positive and negative evidence using a "more-likely-than-not" standard with respect to whether deferred tax assets will be realized. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, actual earnings, forecasts of future profitability, the duration of statutory carryforward periods, the Company’s experience with loss carryforwards not expiring unused and tax planning alternatives. Based on the analysis of positive and negative evidence, the Company believed that there was enough positive evidence for the Company to conclude that it was more likely than not that the Company would realize the majority of its deferred tax assets. As of November 30, 2016 and 2015, the Company's net deferred tax assets included a valuation allowance of $5.8 million and $5.9 million, respectively. See Note 10 for additional information. Product Warranty Warranty and similar reserves for homes are established at an amount estimated to be adequate to cover potential costs for materials and labor with regard to warranty-type claims expected to be incurred subsequent to the delivery of a home. Reserves are determined based on historical data and trends with respect to similar product types and geographical areas. The Company regularly monitors the warranty reserve and makes adjustments to its pre-existing warranties in order to reflect changes in trends and historical data as information becomes available. Warranty reserves are included in Lennar Homebuilding other liabilities in the consolidated balance sheets. The activity in the Company’s warranty reserve was as follows:
Self-Insurance Certain insurable risks such as construction defects, general liability, medical and workers’ compensation are self-insured by the Company up to certain limits. Undiscounted accruals for claims under the Company’s self-insurance program are based on claims filed and estimates for claims incurred but not yet reported. The Company’s self-insurance reserve as of November 30, 2016 and 2015 was $87.6 million and $96.5 million, respectively, of which $57.4 million and $65.0 million, respectively, was included in Lennar Financial Services’ other liabilities in the respective years. Amounts incurred in excess of the Company's self-insurance occurrence or aggregate retention limits are covered by insurance up to the Company's purchased coverage levels. The Company's insurance policies are maintained with highly-rated underwriters for whom the Company believes counterparty default risk is not significant. Earnings per Share Basic earnings per share is computed by dividing net earnings attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in earnings of the Company. All outstanding nonvested shares that contain non-forfeitable rights to dividends or dividend equivalents that participate in undistributed earnings with common stock are considered participating securities and are included in computing earnings per share pursuant to the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating securities according to dividends or dividend equivalents and participation rights in undistributed earnings. The Company’s restricted common stock ("nonvested shares") are considered participating securities. Lennar Financial Services Revenue Recognition Title premiums on policies issued directly by the Company are recognized as revenue on the effective date of the title policies and escrow fees and loan origination revenues are recognized at the time the related real estate transactions are completed, usually upon the close of escrow. Revenues from title policies issued by independent agents are recognized as revenue when notice of issuance is received from the agent, which is generally when cash payment is received by the Company. Expected gains and losses from the sale of loans and their related servicing rights are included in the measurement of all written loan commitments that are accounted for at fair value through earnings at the time of commitment. Interest income on loans held-for-sale and loans held-for-investment is recognized as earned over the terms of the mortgage loans based on the contractual interest rates. Loans Held-for-Sale Loans held-for-sale by the Lennar Financial Services segment, including the rights to service the mortgage loans, are carried at fair value and changes in fair value are reflected in earnings. Premiums and discounts recorded on these loans are presented as an adjustment to the carrying amount of the loans and are not amortized. Management believes carrying loans held-for-sale at fair value improves financial reporting by mitigating volatility in reported earnings caused by measuring the fair value of the loans and the derivative instruments used to economically hedge them without having to apply complex hedge accounting provisions. In addition, the Lennar Financial Services segment recognizes the fair value of its rights to service a mortgage loan as revenue upon entering into an interest rate lock loan commitment with a borrower. The fair value of these servicing rights is included in Lennar Financial Services' other assets as of November 30, 2016 and 2015. Fair value of the servicing rights is determined based on values in the Company’s servicing sales contracts. Provision for Losses The Company establishes reserves for possible losses associated with mortgage loans previously originated and sold to investors based upon, among other things, an analysis of repurchase requests received, an estimate of potential repurchase claims not yet received and actual past repurchases and losses through the disposition of affected loans, as well as previous settlements. Loan origination liabilities are included in Lennar Financial Services’ liabilities in the consolidated balance sheets. The activity in the Company’s loan origination liabilities was as follows:
Loans Held-for-Investment, Net Loans for which the Company has the positive intent and ability to hold to maturity consist of mortgage loans carried at the principal amount outstanding, net of unamortized discounts and allowance for loan losses. Discounts are amortized over the estimated lives of the loans using the interest method. The Lennar Financial Services segment also provides an allowance for loan losses. The provision recorded and the adequacy of the related allowance is determined by management’s continuing evaluation of the loan portfolio in light of past loan loss experience, credit worthiness and nature of underlying collateral, present economic conditions and other factors considered relevant by the Company’s management. Anticipated changes in economic factors, which may influence the level of the allowance, are considered in the evaluation by the Company’s management when the likelihood of the changes can be reasonably determined. While the Company’s management uses the best information available to make such evaluations, future adjustments to the allowance may be necessary as a result of future economic and other conditions that may be beyond management’s control. Derivative Financial Instruments The Lennar Financial Services segment, in the normal course of business, uses derivative financial instruments to reduce its exposure to fluctuations in mortgage-related interest rates. The segment uses mortgage-backed securities ("MBS") forward commitments, option contracts, future contracts and investor commitments to protect the value of fixed rate-locked loan commitments and loans held-for-sale from fluctuations in mortgage-related interest rates. These derivative financial instruments are carried at fair value with the changes in fair value included in Lennar Financial Services revenues. Rialto Management Fee Revenue The Rialto segment provides services to a variety of legal entities and investment vehicles such as funds, joint ventures, co-invests, and other private equity structures to manage their respective investments. As a result, Rialto earns and receives management fees, underwriting fees and due diligence fees. These fees are included in Rialto revenues and are recorded over the period in which the services are performed, fees are determinable and collectability is reasonably assured. Rialto receives investment management fees from investment vehicles based on 1) a percentage of committed or called capital during the commitment period and called capital after the commitment period ends and 2) a percentage of invested capital less the portion of such invested capital utilized to acquire investments that have been sold (in whole or in part) or liquidated. Fees earned for underwriting and due diligence services are based on actual costs incurred. In certain situations, Rialto may earn additional fees when the return on assets managed exceeds contractually established thresholds. Such revenue is only booked when the contract terms are met, the contract is at, or near, completion and the amounts are known and collectability is reasonably assured. Since such revenue is recognized during the latter half of the life of the investment vehicle, after substantially all of the assets have been sold and investment gains and losses realized, the possibility of claw backs is limited. In addition, Rialto may also receive tax distributions in order to cover income tax obligations resulting from allocations of taxable income due to Rialto's carried interests in the funds. These distributions are not subject to clawbacks and therefore are recorded as revenue when received. Rialto Mortgage Finance - Loans Held-for-Sale The originated mortgage loans are classified as loans held-for-sale and are recorded at fair value. The Company elected the fair value option for RMF's loans held-for-sale in accordance with Accounting Standards Codification ("ASC") 825, Financial Instruments, which permits entities to measure various financial instruments and certain other items at fair value on a contract-by-contract basis. Management believes that carrying loans held-for-sale at fair value improves financial reporting by mitigating volatility in reported earnings caused by measuring the fair value of the loans and the derivative instruments, which are also carried at fair value, used to economically hedge them without having to apply complex hedge accounting provisions. Changes in fair values of the loans are reflected in Rialto revenues in the accompanying consolidated statements of operations. Interest income on these loans is calculated based on the interest rate of the loan and is recorded in Rialto revenues in the accompanying consolidated statements of operations. Substantially all of the mortgage loans originated are sold within a short period of time in a securitization on a servicing released, non-recourse basis; although, the Company remains liable for certain limited industry-standard representations and warranties related to loan sales. The Company recognizes revenue on the sale of loans into securitization trusts when control of the loans has been relinquished. Real Estate Owned Real estate owned ("REO") represents real estate that the Rialto segment has taken control in partial or full satisfaction of loans receivable. At the time of acquisition of a property through foreclosure of a loan, REO is recorded at fair value less estimated costs to sell if classified as held-for-sale or at fair value if classified as held-and-used, which becomes the property’s new basis. The fair values of these assets are determined in part by placing reliance on third-party appraisals of the properties and/or internally prepared analyses of recent offers or prices on comparable properties in the proximate vicinity. The third-party appraisals and internally developed analyses are significantly impacted by the local market economy, market supply and demand, competitive conditions and prices on comparable properties, adjusted for anticipated date of sale, location, property size, and other factors. Each REO is unique and is analyzed in the context of the particular market where the property is located. In order to establish the significant assumptions for a particular REO, the Company analyzes historical trends, including trends achieved by the Company's local homebuilding operations, if applicable, and current trends in the market and economy impacting the REO. Using available trend information, the Company then calculates its best estimate of fair value, which can include projected cash flows discounted at a rate the Company believes a market participant would determine to be commensurate with the inherent risks associated with the assets and related estimated cash flow streams. These methods use unobservable inputs to develop fair value for the Company’s REO. Due to the volume and variance of unobservable inputs, resulting from the uniqueness of each of the Company's REO, the Company does not use a standard range of unobservable inputs with respect to its evaluation of REO. However, for operating properties included within REO, the Company may also use estimated cash flows multiplied by a capitalization rate to determine the fair value of the property. Generally, the capitalization rates used to estimate fair value ranged from 8% to 12% and varied based on the location of the asset, asset type and occupancy rates for the operating properties. Changes in economic factors, consumer demand and market conditions, among other things, could materially impact estimates used in the third-party appraisals and/or internally prepared analyses of recent offers or prices on comparable properties. Thus, estimates can differ significantly from the amounts ultimately realized by the Rialto segment from disposition of these assets. The amount by which the recorded investment in the loan is less than the REO’s fair value (net of estimated cost to sell if held-for-sale), is recorded as an unrealized gain upon foreclosure in the Company’s consolidated statements of operations. The amount by which the recorded investment in the loan is greater than the REO’s fair value (net of estimated cost to sell if held-for-sale) is recorded as a provision for loan losses in the Company’s consolidated statements of operations. Additionally, REO includes real estate which Rialto has purchased directly from financial institutions. These REOs are recorded at cost or allocated cost if purchased in a bulk transaction. Subsequent to obtaining REO via foreclosure or directly from a financial institution, management periodically performs valuations using the methodologies described above such that the real estate is carried at the lower of its carrying value or current fair value, less estimated costs to sell if classified as held-for-sale. Held-and-used assets are tested for recoverability whenever changes in circumstances indicate that the carrying value may not be recoverable, and impairment losses are recorded for any amount by which the carrying value exceeds its fair value. Any subsequent impairment losses, operating expenses or income, and gains and losses on disposition of such properties are also recognized in Rialto other income (expense), net. REO assets classified as held-and-used are depreciated using a useful life of forty years for commercial properties and twenty seven and a half years for residential properties. REO assets classified as held-for-sale are not depreciated. Occasionally an asset will require certain improvements to yield a higher return. In accordance with ASC 970-340-25, Real Estate, construction costs incurred prior to acquisition or during development of the asset may be capitalized. Derivative Instruments The Rialto segment, in the normal course of business, uses derivative financial instruments on loans held-for-sale in order to minimize its exposure to fluctuations in mortgage-related interest rates as well as lessen its credit risk. The segment hedges interest rate exposure by entering into interest rate swaps and swap futures. These derivative financial instruments are carried at fair value with derivative instruments in gain positions recorded in other assets while derivative instruments in loss positions are recorded in other liabilities. Consolidations of Variable Interest Entities In 2010, the Rialto segment acquired indirectly 40% managing member equity interests in two limited liability companies ("LLCs"), in partnership with the FDIC. The Company determined that each of the LLCs met the definition of a VIE and that the Company was the primary beneficiary. In accordance with ASC 810-10-65-2, Consolidations, ("ASC 810-10-65-2"), the Company identified the activities that most significantly impact the LLCs’ economic performance and determined that it has the power to direct those activities. The economic performance of the LLCs is most significantly impacted by the performance of the LLCs’ portfolios of assets, which consisted primarily of distressed residential and commercial mortgage loans. Thus, the activities that most significantly impact the LLCs’ economic performance are the servicing and disposition of mortgage loans and real estate obtained through foreclosure of loans, restructuring of loans, or other planned activities associated with the monetizing of loans. At November 30, 2016, these consolidated LLCs had total combined assets and liabilities of $213.8 million and $10.3 million, respectively. At November 30, 2015, these consolidated LLCs had total combined assets and liabilities of $355.2 million and $11.3 million, respectively. The FDIC does not have the unilateral power to terminate the Company’s role in managing the LLCs and servicing the loan portfolios. While the FDIC has the right to prevent certain types of transactions (i.e., bulk sales, selling assets with recourse back to the selling entity, selling assets with representations and warranties and financing the sales of assets without the FDIC’s approval), the FDIC does not have full voting or blocking rights over the LLCs’ activities, making their voting rights protective in nature, not substantive participating voting rights. Other than as described in the preceding sentence, which are not the primary activities of the LLCs, the Company can cause the LLCs to enter into both the disposition and restructuring of loans without any involvement of the FDIC. Additionally, the FDIC has no voting rights with regard to the operation/management of the operating properties that are acquired upon foreclosure of loans (e.g. REO) and no voting rights over the business plans of the LLCs. The FDIC can make suggestions regarding the business plans, but the Company can decide not to follow the FDIC’s suggestions and not to incorporate them in the business plans. Since the FDIC’s voting rights are protective in nature and not substantive participating voting rights, the Company has the power to direct the activities that most significantly impact the LLCs’ economic performance. In accordance with ASC 810-10-65-2, the Company determined that it had an obligation to absorb losses of the LLCs that could potentially be significant to the LLCs or the right to receive benefits from the LLCs that could potentially be significant to the LLCs based on the following factors:
The Company is aware that the FDIC, as the owner of 60% of the equity of each of the LLCs, may also have an obligation to absorb losses of the LLCs that could potentially be significant to the LLCs. However, in accordance with ASC 810-10-25-38A, only one enterprise, if any, is expected to be identified as the primary beneficiary of a VIE. Since both criteria for consolidation in ASC 810-10-65-2 are met, the Company consolidated the LLCs. Voting Interest Entities Rialto Real Estate Fund, LP ("Fund I"), Rialto Real Estate Fund II, LP ("Fund II"), Rialto Real Estate Fund III ("Fund III"), Rialto Mezzanine Partners Fund, LP ("Mezzanine Fund") and the Rialto Credit Partnership, LP ("RCP") are unconsolidated entities and are accounted for under the equity method of accounting. They were determined to have the attributes of an investment company in accordance with ASC Topic 946, Financial Services – Investment Companies, the attributes of which are different from the attributes that would cause a company to be an investment company for purposes of the Investment Company Act of 1940. As a result, Fund I, Fund II, Fund III, Mezzanine Fund, and the RCP's assets and liabilities are recorded at fair value with increases/decreases in fair value recorded in their respective statements of operations, the Company’s share of which will be recorded in the Rialto equity in earnings (loss) from unconsolidated entities financial statement line item. The Company determined that Fund I, Fund II, Fund III, Mezzanine Fund, and the RCP are not variable interest entities but rather voting interest entities due to the following factors:
Having concluded that Fund I, Fund II, Fund III, Mezzanine Fund and the RCP are voting interest entities, the Company has evaluated the funds under the voting interest entity model to determine whether, as general partner, it has control over Fund I, Fund II, Fund III, Mezzanine Fund and the RCP. The Company determined that it does not control Fund I, Fund II, Fund III, Mezzanine Fund or the RCP as its general partner, because the unaffiliated limited partners have substantial kick-out rights and can remove Rialto as general partner at any time for cause or without cause through a simple majority vote of the limited partners or in the case of the RCP, and individual limited partner. In addition, there are no significant barriers to the exercise of these rights. As a result of determining that the Company does not control Fund I, Fund II, Fund III, Mezzanine Fund or the RCP under the voting interest entity model, Fund I, Fund II, Fund III, Mezzanine Fund and the RCP are not consolidated in the Company’s financial statements. Lennar Multifamily Management Fees and General Contractor Revenue The Lennar Multifamily segment provides management services with respect to the development, construction and property management of rental projects in joint ventures in which the Company has investments. As a result, the Lennar Multifamily segment earns and receives fees, which are generally based upon a stated percentage of development and construction costs and a percentage of gross rental collections. These fees are included in Lennar Multifamily revenue and are recorded over the period in which the services are performed, fees are determinable and collectability is reasonably assured. In addition, the Lennar Multifamily provides general contractor services for the construction of some of its rental projects and recognizes the revenue over the period in which the services are performed under the percentage of completion method. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, Revenue from Contracts with Customers, ("ASU 2014-09"). ASU 2014-09 provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASU 2014-09 will require an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update creates a five-step model that requires entities to exercise judgment when considering the terms of the contract(s) which include (i) identifying the contract(s) with the customer, (ii) identifying the separate performance obligations in the contract, (iii) determining the transaction price, (iv) allocating the transaction price to the separate performance obligations, and (v) recognizing revenue when each performance obligation is satisfied. In July 2015, the FASB deferred the effective date by one year and permitted early adoption of the standard, but not before the original effective date; therefore, ASU 2014-09 will be effective for the Company’s fiscal year beginning December 1, 2018 and subsequent interim periods. The Company has the option to apply the provisions of ASU 2014-09 either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of applying this ASU recognized at the date of initial application. The Company is currently evaluating the method and impact the adoption of ASU 2014-09 will have on the Company's consolidated financial statements. Subsequent to the issuance of ASU 2014-09, the FASB has issued several ASUs such as ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, and ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients among others. These ASUs do not change the core principle of the guidance stated in ASU 2014-09, instead these amendments are intended to clarify and improve operability of certain topics included within the revenue standard. These ASUs will have the same effective date and transition requirements as ASU 2014-09. The Company is currently evaluating the method and impact the adoption of these ASUs and ASU 2014-09 will have on the Company's consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis ("ASU 2015-02"). ASU 2015-02 amends the consolidation requirements and significantly changes the consolidation analysis required. ASU 2015-02 requires management to reevaluate all legal entities under a revised consolidation model specifically (i) modify the evaluation of whether limited partnership and similar legal entities are VIEs, (ii) eliminate the presumption that a general partner should consolidate a limited partnership, (iii) affect the consolidation analysis of reporting entities that are involved with VIEs particularly those that have fee arrangements and related party relationships, and (iv) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Act of 1940 for registered money market funds. ASU 2015-02 will be effective for the Company’s fiscal year beginning December 1, 2016 and subsequent interim periods. The adoption of ASU 2015-02 is not expected to have a material effect on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customers' Accounting for Fees Paid in a Cloud Computing Arrangement ("ASU 2015-05"). ASU 2015-05 provides guidance for a customer to determine whether a cloud computing arrangement contains a software license or should be accounted for as a service contract. ASU 2015-05 will be effective for the Company’s fiscal year beginning December 1, 2016 and subsequent interim periods. As permitted, the Company elected early adoption. The adoption of ASU 2015-05 did not have a material effect on the Company’s consolidated financial statements. In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments ("ASU 2015-16"). ASU 2015-16 requires an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. ASU 2015-16 will be effective for the Company’s fiscal year beginning December 1, 2017 and subsequent interim periods. The adoption of ASU 2015-16 is not expected to have a material effect on the Company’s consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"). ASU 2016-01 modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Under the new guidance, entities will have to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicality exception. A practicality exception will apply to those equity investments that do not have a readily determinable fair value and do not qualify for the practical expedient to estimate fair value under ASC 820, Fair Value Measurements, and as such these investments may be measured at cost. ASU 2016-01 will be effective for the Company’s fiscal year beginning December 1, 2018 and subsequent interim periods. The adoption of ASU 2016-01 is not expected to have a material effect on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-02, Leases ("ASU 2016-02"), which provides guidance for accounting for leases. ASU 2016-02 requires lessees to classify leases as either finance or operating leases and to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of the lease classification. The lease classification will determine whether the lease expense is recognized based on an effective interest rate method or on a straight line basis over the term of the lease. Accounting for lessors remains largely unchanged from current GAAP. ASU 2016-02 will be effective for the Company’s fiscal year beginning December 1, 2019 and subsequent interim periods. The Company is currently evaluating the impact the adoption of ASU 2016-02 will have on the Company's consolidated financial statements. In March 2016, the FASB issued ASU 2016-07, Investments- Equity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting ("ASU 2016-07"). ASU 2016-07 eliminates the requirement to apply the equity method of accounting retrospectively when a reporting entity obtains significant influence over a previously held investment. ASU 2016-07 will be effective for the Company’s fiscal year beginning December 1, 2017 and subsequent interim periods. The adoption of ASU 2016-07 is not expected to have a material effect on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). ASU 2016-09 simplifies several aspects related to the accounting for share-based payment transactions, including the accounting for income taxes, statutory tax withholding requirements and classification on the statement of cash flows. ASU 2016-09 will be effective for the Company’s fiscal year beginning December 1, 2017 and subsequent interim periods. The Company is currently evaluating the potential impact of ASU 2016-09 but the Company does not expect it to have a material impact on the Company's consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"). ASU 2016-15 reduces the existing diversity in practice in financial reporting across all industries by clarifying certain existing principles in ASC 230, Statement of Cash Flows, ("ASC 230") including providing additional guidance on how and what an entity should consider in determining the classification of certain cash flows. In addition, in November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash ("ASU 2016-18"). ASU 2016-18 clarifies certain existing principles in ASC 230, including providing additional guidance related to transfers between cash and restricted cash and how entities present, in their statement of cash flows, the cash receipts and cash payments that directly affect the restricted cash accounts. These ASUs will be effective for the Company’s fiscal year beginning December 1, 2018 and subsequent interim periods. Early adoption is permitted. The adoption of ASU 2016-15 and ASU 2016-18 will modify the Company's current disclosures and reclassifications within the consolidated statement of cash flows but they are not expected to have a material effect on the Company’s consolidated financial statements. Reclassifications/Revisions As a result of the Company's change in reportable segments during fiscal year 2016, the Company restated certain prior year amounts in the consolidated financial statements to conform with the 2016 presentation (see Note 2). These reclassifications had no impact on the Company's consolidated financial statements.
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Operating And Reporting Segments |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating And Reporting Segments | Operating and Reporting Segments As of and for the year ended November 30, 2016, the Company’s operating segments are aggregated into reportable segments, based primarily upon similar economic characteristics, geography and product type. The Company’s reportable segments consist of:
During the fourth quarter of 2016, the Company evaluated all of its reportable segments and as the Houston operating division, which previously had been reported a separate reportable segment, did not meet the reportable criteria set forth in ASC 280, Segment Reporting ("ASC 280"), the Company aggregated this operating division into the Homebuilding Central reportable segment as this division exhibits similar economic characteristics, geography and product type as the other divisions in Homebuilding Central. In addition, during the first quarter of 2016, the Company made the decision to divide the Southeast Florida operating division into two operating segments to maximize operational efficiencies given the continued growth of the division. As a result of this change in management structure, the Company re-evaluated its reportable segments and determined that neither operating segment met the reportable criteria set forth in ASC 280. The Company aggregated these operating segments into the Homebuilding East reportable segment as these divisions exhibit similar economic characteristics, geography and product type as the other divisions in Homebuilding East. All prior year segment information has been restated to conform with the 2016 presentation. The changes in the reportable segments have no effect on the Company's consolidated financial position, results of operations or cash flows for the periods presented. Information about homebuilding activities in states which are not economically similar to other states in the same geographic area is grouped under "Homebuilding Other," which is not considered a reportable segment. Evaluation of segment performance is based primarily on operating earnings (loss) before income taxes. Operations of the Company’s homebuilding segments primarily include the construction and sale of single-family attached and detached homes, as well as the purchase, development and sale of residential land directly and through the Company’s unconsolidated entities. Operating earnings (loss) for the homebuilding segments consist of revenues generated from the sales of homes and land, equity in earnings (loss) from unconsolidated entities and other income (expense), net, less the cost of homes sold and land sold, selling, general and administrative expenses and other interest expense of the segment. The Company’s reportable homebuilding segments and all other homebuilding operations not required to be reported separately, have homebuilding divisions located in: East: Florida, Georgia, Maryland, New Jersey, North Carolina, South Carolina and Virginia Central: Arizona, Colorado and Texas West: California and Nevada Other: Illinois, Minnesota, Oregon, Tennessee and Washington Operations of the Lennar Financial Services segment include primarily mortgage financing, title insurance and closing services for both buyers of the Company’s homes and others. The Lennar Financial Services segment sells substantially all of the loans it originates within a short period in the secondary mortgage market, the majority of which are sold on a servicing released, non-recourse basis. After the loans are sold, the Company retains potential liability for possible claims by purchasers that it breached certain limited industry-standard representations and warranties in the loan sale agreements. Lennar Financial Services’ operating earnings consist of revenues generated primarily from mortgage financing, title insurance and closing services, less the cost of such services and certain selling, general and administrative expenses incurred by the segment. The Lennar Financial Services segment operates generally in the same states as the Company’s homebuilding operations as well as in other states. Operations of the Rialto segment include raising, investing and managing third-party capital, originating and securitizing commercial mortgage loans as well as investing its own capital in real estate related mortgage loans, properties and related securities. Rialto utilizes its vertically-integrated investment and operating platform to underwrite, diligence, acquire, manage, workout and add value to diverse portfolios of real estate loans, properties and real estate related securities as well as providing strategic real estate capital. Rialto’s operating earnings consist of revenues generated primarily from gains from securitization transactions and interest income from the RMF business, interest income associated with portfolios of real estate loans acquired and other portfolios of real estate loans and assets acquired, asset management, due diligence and underwriting fees derived from the real estate investment funds managed by the Rialto segment, fees for sub-advisory services, other income (expense), net, and equity in earnings (loss) from unconsolidated entities, less the costs incurred by the segment for managing portfolios, costs related to RMF and other general and administrative expenses. Operations of the Lennar Multifamily segment include revenues generated from land sales, revenue from construction activities and management fees generated from joint ventures, and equity in earnings (loss) from unconsolidated entities, less the cost of land sold, expenses related to construction activities and general and administrative expenses. Each reportable segment follows the same accounting policies described in Note 1—"Summary of Significant Accounting Policies" to the consolidated financial statements. Operational results of each segment are not necessarily indicative of the results that would have occurred had the segment been an independent, stand-alone entity during the periods presented. Financial information relating to the Company’s operations was as follows:
The assets and liabilities related to the Lennar Financial Services segment were as follows:
At November 30, 2016, the Lennar Financial Services segment warehouse facilities were as follows:
The assets and liabilities related to the Rialto segment were as follows:
For the years ended November 30, 2016, 2015 and 2014, Rialto costs and expenses included loan impairments of $18.2 million, $10.4 million and $57.1 million, respectively, primarily associated with the segment's FDIC loans portfolio (before noncontrolling interests). For the years ended November 30, 2016, 2015 and 2014, Rialto operating earnings included net earnings (loss) attributable to noncontrolling interests of ($18.8) million, $4.8 million and ($22.5) million, respectively. The following is a detail of Rialto other income (expense), net:
Loans Receivable The following table represents loans receivable, net by type:
The nonaccrual loan portfolios consist primarily of loans acquired at a discount. In 2010, the Rialto segment acquired indirectly 40% managing member equity interests in two limited liability companies in partnership with the FDIC ("FDIC Portfolios"). The LLCs met the accounting definition of VIEs and since the Company was determined to be the primary beneficiary, the Company consolidated the LLCs. The Company was determined to be the primary beneficiary because it has the power to direct the activities of the LLCs that most significantly impact the LLCs' performance through Rialto's management and servicer contracts. At November 30, 2016 and 2015, these consolidated LLCs had total combined assets of $213.8 million and $355.2 million, respectively, and liabilities of $10.3 million and $11.3 million, respectively. In addition, in 2010 Rialto acquired 400 distressed residential and commercial real estate loans ("Bank Portfolios") and over 300 REO properties from three financial institutions. Based on the nature of these loans, the portfolios are managed by assessing the risks related to the likelihood of collection of payments from borrowers and guarantors, as well as monitoring the value of the underlying collateral. As of November 30, 2016 and 2015, management classified all loans receivable within the FDIC Portfolios and Bank Portfolios as nonaccrual loans as forecasted principal and interest cannot be reasonably estimated, and therefore, the Company accounts for these assets in accordance with ASC 310-10, Receivables. As of November 30, 2016, accrual loans included floating and fixed rate commercial property loans maturing between October 2017 and June 2018. Accrual loans as of November 30, 2015 included $17.1 million of convertible land loans that matured and were settled in July 2016 and $59.1 million of floating and fixed rate commercial property loans that were maturing between May 2016 and July 2018. The following tables represent nonaccrual loans in the FDIC Portfolios and Bank Portfolios accounted for under ASC 310-10 aggregated by collateral type: November 30, 2016
November 30, 2015
The average recorded investment in impaired loans totaled approximately $68 million and $109 million for the years ended November 30, 2016 and 2015, respectively. In order to assess the risk associated with each risk category, management evaluates the forecasted cash flows and the value of the underlying collateral securing the loans receivable on a quarterly basis or when an event occurs that suggests a decline in the collateral’s fair value. Allowance for Loan Losses The allowance for loan losses is a valuation reserve established through provisions for loan losses charged against Rialto’s operating earnings. For nonaccrual loans, the risk relates to a decline in the value of the collateral securing the outstanding obligation. If the recorded investment in the nonaccrual loan exceeds its fair value, an impairment is recognized through an allowance for loan losses. The activity in the Company's allowance rollforward related to nonaccrual loans was as follows:
For accrual loans an allowance is calculated based on a review of individual loans considered impaired. The analysis of impaired losses may be based on the present value of expected future cash flows discounted at the effective loan rate, an observable market price or the fair value of the underlying collateral on collateral dependent loans. In determining the collectability of certain loans, management also considers the fair value of any underlying collateral. Based on management's assessment, no allowance for loan losses were recorded for Rialto's accrual loans as of November 30, 2016 and 2015, respectively. Real Estate Owned The acquisition of properties acquired through, or in lieu of, loan foreclosure are reported within the consolidated balance sheets as REO held-and-used, net and REO held-for-sale. The following tables present the activity in REO:
For the years ended November 30, 2016, 2015 and 2014, the Company recorded net gains (losses) of $1.3 million, ($1.3) million and ($6.8) million, respectively, from acquisitions of REO through foreclosure. These net gains (losses) are recorded in Rialto other income (expense), net. Rialto Mortgage Finance - loans held-for-sale During the year ended November 30, 2016, RMF originated loans with a total principal balance of $1.8 billion, of which $1.7 billion were recorded as loans held-for-sale and $81.2 million were recorded as accrual loans within loans receivable, net, and sold $1.9 billion of loans into 11 separate securitizations. During the year ended November 30, 2015, RMF originated loans with a principal balance of $2.7 billion of which $2.6 billion were recorded as loans held-for-sale and $62.3 million were recorded as accrual loans within loans receivable, net, and sold $2.4 billion of loans into 12 separate securitizations. As of November 30, 2016 and 2015, originated loans with an unpaid principal balance of $199.8 million and $151.8 million, respectively, were sold into a securitization trust but not settled and thus were included as receivables, net. Notes and Other Debts Payable The Rialto segment has $350 million aggregate principal amount of the 7.00% senior notes due 2018 (the "7.00% Senior Notes"). Interest on the 7.00% Senior Notes is due semi-annually. As of November 30, 2016 and 2015, the carrying amount, net of debt issuance costs, of the 7.00% Senior Notes was $348.7 million and $347.9 million, respectively. Under the indenture, Rialto is subject to certain covenants limiting, among other things, Rialto’s ability to incur indebtedness, to make investments, to make distributions to, or enter into transactions with, Lennar or to create liens, subject to certain exceptions and qualifications. Rialto also has quarterly and annual reporting requirements, similar to an SEC registrant, to holders of the 7.00% Senior Notes. The Company believes Rialto was in compliance with its debt covenants at November 30, 2016. At November 30, 2016, Rialto warehouse facilities were as follows:
Borrowings under the facilities that finance RMF's loan originations and securitization activities were $180.2 million and $317.1 million as of November 30, 2016 and 2015, respectively, and were secured by a 75% interest in the originated commercial loans financed. The facilities require immediate repayment of the 75% interest in the secured commercial loans when the loans are sold in a securitization and the proceeds are collected. These warehouse repurchase facilities are non-recourse to the Company and are expected to be renewed or replaced with other facilities when they mature. In November 2016, Rialto paid the remaining outstanding principal amount of $30.3 million related to a $124 million senior unsecured note provided by one of the selling institutions in the Bank Portfolios and REO properties transaction. In 2014, Rialto issued two notes with a principal amount of $94.7 million through structured note offerings (the "Structured Notes") at a price of 100% and 99.5%, respectively, with annual coupon rates of 2.85%. and 5.00%, respectively, and collateralized by certain assets originally acquired in the Bank Portfolios. As of November 30, 2016 and 2015, the remaining outstanding principal amount, net of debt issuance costs, related to the Structured Notes was $23.9 million and $31.3 million, respectively and the estimated final payment date is December 15, 2017. Investments Generally, all of Rialto's investments in funds have the attributes of an investment company in accordance with ASC 946, Financial Services – Investment Companies, as amended by ASU 2013-08, Financial Services - Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements, the attributes of which are different from the attributes that would cause a company to be an investment company for purposes of the Investment Company Act of 1940. As a result, the assets and liabilities of the funds in which Rialto has investments in are recorded at fair value with increases/decreases in fair value recorded in their respective statements of operations and the Company’s share recorded in Rialto equity in earnings from unconsolidated entities in the Company's statement of operations. The following table reflects Rialto's investments in funds that invest in and manage real estate related assets and other investments:
Rialto's share of earnings (loss) from unconsolidated entities was as follows:
During the years ended November 30, 2016, 2015 and 2014, Rialto received $10.1 million, $20.0 million and $34.7 million, respectively, of advance distributions with regard to Rialto's carried interests in its real estate funds in order to cover income tax obligations resulting from allocations of taxable income to Rialto's carried interests in these funds. These advance distributions are not subject to clawbacks and therefore are included in Rialto's revenues. During 2015, Rialto adopted a Carried Interest Incentive Plan (the "Plan"), under which participating employees in the aggregate may receive up to 40% of the equity units of a limited liability company (a "Carried Interest Entity") that is entitled to distributions made by a fund or other investment vehicle (a "Fund") managed by a subsidiary of Rialto. As such, those employees receiving equity units in a Carried Interest Entity may benefit from distributions made by a Fund to the extent the Carried Interest Entity makes distributions to its equity holders. The units issued to employees are equity awards and are subject to vesting schedules and forfeiture or repurchase provisions in the case of a termination of employment. Summarized condensed financial information on a combined 100% basis related to Rialto’s investments in unconsolidated entities that are accounted for by the equity method was as follows:
At November 30, 2016 and 2015, the carrying value of Rialto's non-investment grade commercial mortgage-backed securities ("CMBS") was $71.3 million and $25.6 million, respectively. These securities were purchased at discount rates ranging from 39% to 72% with coupon rates ranging from 1.3% to 4.0%, stated and assumed final distribution dates between November 2020 and November 2026, and stated maturity dates between November 2048 and March 2059. The Rialto segment reviews changes in estimated cash flows periodically to determine if an other-than-temporary impairment has occurred on its CMBS. Based on management’s assessment, no impairment charges were recorded during any of the years ended November 30, 2016, 2015 and 2014. The Rialto segment classified these securities as held-to-maturity based on its intent and ability to hold the securities until maturity. In 2014, the Rialto segment invested $18 million in a private commercial real estate services company. The investment was carried at cost at November 30, 2016 and 2015 and is included in Rialto's other assets.Lennar Multifamily SegmentThe Company is actively involved, primarily through unconsolidated entities, in the development, construction and property management of multifamily rental properties. The Lennar Multifamily segment focuses on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S. markets. The assets and liabilities related to the Lennar Multifamily segment were as follows:
The unconsolidated entities in which the Lennar Multifamily segment has investments usually finance their activities with a combination of partner equity and debt financing. In connection with many of the loans to Lennar Multifamily unconsolidated entities, the Company (or entities related to them) has been required to give guarantees of completion and cost over-runs to the lenders and partners. Those completion guarantees may require that the guarantors complete the construction of the improvements for which the financing was obtained. If the construction is to be done in phases, the guarantee generally is limited to completing only the phases as to which construction has already commenced and for which loan proceeds were used. Additionally, the Company guarantees the construction costs of the project as construction cost over-runs would be paid by the Company. Generally, these payments would be increases to the Company's investment in the entities and would increase its share of funds the entities distribute after the achievement of certain thresholds. As of both November 30, 2016 and 2015, the fair value of the completion guarantees was immaterial. Additionally, as of November 30, 2016 and 2015, the Lennar Multifamily segment had $32.0 million and $37.9 million, respectively, of letters of credit outstanding primarily for credit enhancements for the bank debt of certain of its unconsolidated entities and deposits on land purchase contracts. These letters of credit outstanding are included in the disclosure in Note 6 related to the Company's performance and financial letters of credit. As of November 30, 2016 and 2015, the Lennar Multifamily segment's unconsolidated entities had non-recourse debt with completion guarantees of $589.4 million and $466.7 million, respectively. In many instances, the Lennar Multifamily segment is appointed as the construction, development and property manager of certain of its Lennar Multifamily unconsolidated entities and receives fees for performing this function. During the years ended November 30, 2016, 2015 and 2014, the Lennar Multifamily segment received fee income, net of deferrals, from its unconsolidated entities of $38.5 million, $27.2 million and $13.5 million, respectively. The Lennar Multifamily segment also provides general contractor services for construction of some of the rental properties owned by unconsolidated entities in which the Company has investments. During the years ended November 30, 2016, 2015 and 2014, the Lennar Multifamily segment provided general contractor services, net of deferrals, totaling $237.1 million, $142.7 million and $50.9 million, respectively, which were partially offset by costs related to those services of $228.6 million, $138.6 million and $49.0 million, respectively. In 2015, the Lennar Multifamily segment completed the initial closing of the Lennar Multifamily Venture (the "Venture") for the development, construction and property management of class-A multifamily assets with $1.1 billion of commitments. During the year ended November 30, 2016, the Venture received an additional $1.1 billion of equity commitments completing the fund raising for the Venture and increasing its total commitments to $2.2 billion, including a $504 million co-investment commitment by Lennar comprised of cash, undeveloped land and preacquisition costs. During the year ended November 30, 2016, $656.1 million in equity commitments were called, of which the Company contributed its portion of $203.8 million. During the year ended November 30, 2016, the Company received net distributions of $113.7 million as return of capital from the Venture when bringing new investors into the Venture. As of November 30, 2016, $931.6 million of the $2.2 billion in equity commitments had been called, of which the Company has contributed $215.8 million representing its pro-rata portion of the called equity, resulting in a remaining equity commitment for the Company of $288.2 million. As of November 30, 2016 and 2015, the carrying value of the Company's investment in the Venture was $198.2 million and $122.5 million, respectively. Summarized condensed financial information on a combined 100% basis related to Lennar Multifamily's investments in unconsolidated entities that are accounted for by the equity method was as follows:
(1) During the year ended November 30, 2016, Lennar Multifamily equity in earnings from unconsolidated entities included the segment's $91.0 million share of gains as a result of the sale of seven operating properties by its unconsolidated entities. During the years ended November 30, 2015 and 2014, Lennar Multifamily equity in earnings from unconsolidated entities included the segment's $22.2 million and $14.7 million share of gains, respectively, as a result of the sale of two operating properties each year by its unconsolidated entities.
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Lennar Homebuilding Receivables |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lennar Homebuilding Receivables | Lennar Homebuilding Receivables
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Lennar Homebuilding Investments In Unconsolidated Entities |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lennar Homebuilding Investments In Unconsolidated Entities | Lennar Homebuilding Investments in Unconsolidated Entities Summarized condensed financial information on a combined 100% basis related to Lennar Homebuilding’s unconsolidated entities that are accounted for by the equity method was as follows:
For the year ended November 30, 2016, Lennar Homebuilding equity in loss from unconsolidated entities was primarily attributable to the Company's share of costs associated with the FivePoint combination and operational net losses from the new FivePoint unconsolidated entity, totaling $42.6 million. This was partially offset by $12.7 million of equity in earnings primarily due to sales of homesites to third parties by one of the Company's unconsolidated entities. For the year ended November 30, 2015, Lennar Homebuilding equity in earnings included $82.8 million of equity in earnings from one of the Company's unconsolidated entities primarily due to (1) sales of approximately 800 homesites to a joint venture in which the Company has a 50% investment and for which the Company's portion of the gross profit from the sale was deferred, (2) sales of approximately 700 homesites and a commercial property to third parties and (3) a gain on debt extinguishment. In addition, for the year ended November 30, 2015, net earnings of unconsolidated entities included sales of approximately 300 homesites to Lennar by one of the Company's unconsolidated entities that resulted in $49.3 million of gross profit, of which the Company's portion was deferred. For the year ended November 30, 2014, Lennar Homebuilding equity in loss from unconsolidated entities related primarily to the Company's share of operating losses from various Lennar Homebuilding unconsolidated entities, which included $4.6 million of valuation adjustments related to assets of Lennar Homebuilding's unconsolidated entities, partially offset by $4.7 million of equity in earnings as a result of third-party land sales by one unconsolidated entity.
On May 2, 2016 (the "Closing Date"), the Company contributed, or obtained the right to contribute, its investment in three strategic joint ventures previously managed by FivePoint Communities in exchange for an investment in a FivePoint entity. The fair values of the assets contributed to this FivePoint entity, included within the unconsolidated entities summarized condensed balance sheet presented above, are preliminary and may be adjusted when additional information is obtained during the transaction's measurement period (a period of up to one year from the Closing Date) that may change the fair value allocation as of the acquisition date. A portion of the assets of one of the three strategic joint ventures was retained by Lennar and its venture partner in a new unconsolidated entity. The transactions did not have a material impact to the Company’s financial position or cash flows. The Company recorded its share of combination costs in equity in loss from unconsolidated entities on the consolidated statement of operations for the year ended November 30, 2016. As of November 30, 2016 and 2015, the Company’s recorded investments in Lennar Homebuilding unconsolidated entities were $811.7 million and $741.6 million, respectively, while the underlying equity in Lennar Homebuilding unconsolidated entities partners’ net assets as of November 30, 2016 and 2015 was $1.2 billion and $839.5 million, respectively. The basis difference is primarily as a result of the Company contributing its investment in three strategic joint ventures with a higher fair value than book value for an investment in the FivePoint entity and deferring equity in earnings on land sales to the Company. During the year ended November 30, 2015, one of the Company's unconsolidated entities sold approximately 800 homesites to a joint venture, in which the Company has a 50% investment, for $472 million of which $320.0 million was financed through a non-recourse note. This transaction resulted in $157.4 million of gross profit, of which the Company's portion was deferred. In addition, this transaction resulted in an increase in inventory, other assets and debt of the Lennar Homebuilding unconsolidated entities reflected in the summarized condensed financial information presented in the previous table for the year ended November 30, 2015. The Company’s partners generally are unrelated homebuilders, land owners/developers and financial or other strategic partners. The unconsolidated entities follow accounting principles that are in all material respects the same as those used by the Company. The Company shares in the profits and losses of these unconsolidated entities generally in accordance with its ownership interests. In many instances, the Company is appointed as the day-to-day manager under the direction of a management committee that has shared powers amongst the partners of the unconsolidated entities and the Company receives management fees and/or reimbursement of expenses for performing this function. During the years ended November 30, 2016, 2015 and 2014, the Company received management fees and reimbursement of expenses, net of deferrals, from Lennar Homebuilding unconsolidated entities totaling $13.2 million, $31.3 million and $30.7 million, respectively. The Company and/or its partners sometimes obtain options or enter into other arrangements under which the Company can purchase portions of the land held by the unconsolidated entities. Option prices are generally negotiated prices that approximate fair value when the Company receives the options. During the years ended November 30, 2016, 2015 and 2014, $130.4 million, $177.6 million and $59.0 million, respectively, of the unconsolidated entities’ revenues were from land sales to the Company. The Company does not include in its Lennar Homebuilding equity in earnings (loss) from unconsolidated entities its pro-rata share of unconsolidated entities’ earnings resulting from land sales to its homebuilding divisions. Instead, the Company accounts for those earnings as a reduction of the cost of purchasing the land from the unconsolidated entities. This in effect defers recognition of the Company’s share of the unconsolidated entities’ earnings related to these sales until the Company delivers a home and title passes to a third-party homebuyer. The Lennar Homebuilding entities in which the Company has investments usually finance their activities with a combination of partner equity and debt financing. In some instances, the Company and its partners have guaranteed debt of certain unconsolidated entities. The total debt of the Lennar Homebuilding unconsolidated entities in which the Company has investments was as follows:
In most instances in which the Company has guaranteed debt of a Lennar Homebuilding unconsolidated entity, the Company’s partners have also guaranteed that debt and are required to contribute their share of the guarantee payments. In a repayment guarantee, the Company and its venture partners guarantee repayment of a portion or all of the debt in the event of default before the lender would have to exercise its rights against the collateral. In connection with many of the loans to Lennar Homebuilding unconsolidated entities, the Company and its joint venture partners (or entities related to them) have been required to give guarantees of completion to the lenders. Those completion guarantees may require that the guarantors complete the construction of the improvements for which the financing was obtained. If the construction is to be done in phases, the guarantee generally is limited to completing only the phases as to which construction has already commenced and for which loan proceeds were used. If the Company is required to make a payment under any guarantee, the payment would constitute a capital contribution or loan to the Lennar Homebuilding unconsolidated entity and increase the Company's investment in the unconsolidated entity and its share of any funds the entity distributes. As of both November 30, 2016 and 2015, the fair values of the repayment guarantees and completion guarantees were not material. The Company believes that as of November 30, 2016, in the event it becomes legally obligated to perform under a guarantee of the obligation of a Lennar Homebuilding unconsolidated entity due to a triggering event under a guarantee, most of the time the collateral should be sufficient to repay at least a significant portion of the obligation or the Company and its partners would contribute additional capital into the venture. In certain instances, the Company has placed performance letters of credit and surety bonds with municipalities for its joint ventures (see Note 6).
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Lennar Homebuilding Operating Properties And Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lennar Homebuilding Operating Properties And Equipment | Lennar Homebuilding Operating Properties and Equipment Operating properties and equipment are included in Lennar Homebuilding other assets in the consolidated balance sheets and were as follows:
(1) Operating properties primarily include rental operations and commercial properties. During the year ended November 30, 2015, the Company sold operating properties with a basis of $132.7 million.
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Lennar Homebuilding Senior Notes And Other Debts Payable |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lennar Homebuilding Senior Notes And Other Debts Payable | Lennar Homebuilding Senior Notes and Other Debts Payable
The carrying amounts of the senior notes listed above are net of debt issuance costs of $22.1 million and $26.4 million, as of November 30, 2016 and 2015, respectively. In June 2016, the Company amended the credit agreement governing its unsecured revolving credit facility (the "Credit Facility") to increase the maximum borrowings from $1.6 billion to $1.8 billion. The maturity for $1.3 billion of the Credit Facility was extended from June 2019 to June 2020, with the remaining $160 million maturing in June 2018. As of November 30, 2016, the Credit Facility included a $298 million accordion feature, subject to additional commitments, with certain financial institutions. The proceeds available under the Credit Facility, which are subject to specified conditions for borrowing, may be used for working capital and general corporate purposes. The credit agreement also provides that up to $500 million in commitments may be used for letters of credit. As of both November 30, 2016 and 2015, the Company had no outstanding borrowings under the Credit Facility. Under the Credit Facility agreement, the Company is required to maintain a minimum consolidated tangible net worth, a maximum leverage ratio and either a liquidity or an interest coverage ratio. These ratios are calculated per the Credit Facility agreement, which involves adjustments to GAAP financial measures. The Company believes it was in compliance with its debt covenants at November 30, 2016. In addition, the Company had $320 million letter of credit facilities with different financial institutions at November 30, 2016. The Company’s performance letters of credit outstanding were $270.8 million and $236.5 million at November 30, 2016 and 2015, respectively. The Company’s financial letters of credit outstanding were $210.3 million and $216.7 million at November 30, 2016 and 2015, respectively. Performance letters of credit are generally posted with regulatory bodies to guarantee the Company’s performance of certain development and construction activities. Financial letters of credit are generally posted in lieu of cash deposits on option contracts, for insurance risks, credit enhancements and as other collateral. Additionally, at November 30, 2016, the Company had outstanding surety bonds of $1.4 billion including performance surety bonds related to site improvements at various projects (including certain projects of the Company’s joint ventures) and financial surety bonds including $223.4 million related to pending litigation. Although significant development and construction activities have been completed related to these site improvements, these bonds are generally not released until all development and construction activities are completed. As of November 30, 2016, there were approximately $488.9 million, or 42%, of anticipated future costs to complete related to these site improvements. The Company does not presently anticipate any draws upon these bonds or letters of credit, but if any such draws occur, the Company does not believe they would have a material effect on its financial position, results of operations or cash flows. The terms of each of the Company's senior notes outstanding at November 30, 2016 were as follows:
In March 2016, the Company retired its 6.50% senior notes due April 2016 (the "6.50% Senior Notes") for 100% of the $250 million outstanding principal amount, plus accrued and unpaid interest. During the year ended November 30, 2016, all of the $400 million aggregate principal amount of the 3.25% convertible senior notes due 2021 (the "3.25% Convertible Senior Notes") were converted or redeemed for 17.0 million shares of Class A common stock, plus accrued and unpaid interest through the date of the conversions/redemptions and small cash premiums. The 3.25% Convertible Senior Notes were converted at the initial conversion rate of 42.5555 shares of Class A common stock per $1,000 principal amount of the 3.25% Convertible Senior Notes, which is equivalent to an initial conversion price of approximately $23.50 per share of Class A common stock. For the year ended November 30, 2016, the calculation of diluted earnings per share included 11.9 million shares related to the dilutive effect of the 3.25% Convertible Senior Notes. For both the years ended November 30, 2015 and 2014, the calculation of diluted earnings per share included 17.0 million shares related to the dilutive effect of the 3.25% Convertible Senior Notes. During the year ended November 30, 2016, all of the remaining $234 million aggregate outstanding principal amount of the 2.75% convertible senior notes due December 2020 (the "2.75% Convertible Senior Notes") were converted or exchanged by the holders for approximately $234 million in cash and 5.2 million shares of Class A common stock, plus accrued and unpaid interest with respect to the exchanges. The 2.75% Convertible Senior Notes were convertible into cash, shares of Class A common stock or a combination of both, at the Company’s election. However, the Company settled the face value of the 2.75% Convertible Senior Notes in cash. Holders converted or exchanged the 2.75% Convertible Senior Notes at the initial conversion rate of 45.1794 shares of Class A common stock per $1,000 principal amount, which was equivalent to an initial conversion price of approximately $22.13 per share of Class A common stock. For the years ended November 30, 2016, 2015 and 2014, the calculation of diluted earnings per share included 0.4 million shares, 8.6 million shares and 9.0 million shares, respectively, related to the dilutive effect of the 2.75% Convertible Senior Notes. Subsequent to November 30, 2016, the Company issued $600 million aggregate principal amount of 4.125% senior notes due 2022 (the "4.125% Senior Notes") at a price of 100%. Proceeds from the offering, after underwriting fees but before expenses, are estimated to be $596.1 million. The Company will use the net proceeds from the sales of the 4.125% Senior Notes to fund all or a portion of the cash consideration for the Company's acquisition of WCI Communities, Inc. ("WCI"), to pay related costs and expenses related to the acquisition of WCI and/or for general corporate purposes, which may include the repayment or repurchase of the Company's debt. Interest on the 4.125% Senior Notes is due semi-annually beginning July 15, 2017. The 4.125% Senior Notes are unsecured and unsubordinated, but are guaranteed by substantially all of the Company's 100% owned homebuilding subsidiaries. The Company's senior notes are guaranteed by substantially all of the Company's 100% owned homebuilding subsidiaries and some of the Company's other subsidiaries. Although the guarantees are full, unconditional and joint and several while they are in effect, (i) a subsidiary will cease to be a guarantor at any time when it is not directly or indirectly guaranteeing at least $75 million of debt of Lennar Corporation (the parent company), and (ii) 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. At November 30, 2016, the Company had mortgage notes on land and other debt due at various dates through 2031 bearing interest at rates up to 7.5% with an average interest rate of 3.1%. At November 30, 2016 and 2015, the carrying amount of the mortgage notes on land and other debt was $206.1 million and $278.4 million, respectively. During the years ended November 30, 2016 and 2015, the Company retired $211.0 million and $258.1 million, respectively, of mortgage notes on land and other debt. The minimum aggregate principal maturities of senior notes and other debts payable during the five years subsequent to November 30, 2016 and thereafter are as follows:
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Lennar Financial Services Segment |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating And Reporting Segments | Operating and Reporting Segments As of and for the year ended November 30, 2016, the Company’s operating segments are aggregated into reportable segments, based primarily upon similar economic characteristics, geography and product type. The Company’s reportable segments consist of:
During the fourth quarter of 2016, the Company evaluated all of its reportable segments and as the Houston operating division, which previously had been reported a separate reportable segment, did not meet the reportable criteria set forth in ASC 280, Segment Reporting ("ASC 280"), the Company aggregated this operating division into the Homebuilding Central reportable segment as this division exhibits similar economic characteristics, geography and product type as the other divisions in Homebuilding Central. In addition, during the first quarter of 2016, the Company made the decision to divide the Southeast Florida operating division into two operating segments to maximize operational efficiencies given the continued growth of the division. As a result of this change in management structure, the Company re-evaluated its reportable segments and determined that neither operating segment met the reportable criteria set forth in ASC 280. The Company aggregated these operating segments into the Homebuilding East reportable segment as these divisions exhibit similar economic characteristics, geography and product type as the other divisions in Homebuilding East. All prior year segment information has been restated to conform with the 2016 presentation. The changes in the reportable segments have no effect on the Company's consolidated financial position, results of operations or cash flows for the periods presented. Information about homebuilding activities in states which are not economically similar to other states in the same geographic area is grouped under "Homebuilding Other," which is not considered a reportable segment. Evaluation of segment performance is based primarily on operating earnings (loss) before income taxes. Operations of the Company’s homebuilding segments primarily include the construction and sale of single-family attached and detached homes, as well as the purchase, development and sale of residential land directly and through the Company’s unconsolidated entities. Operating earnings (loss) for the homebuilding segments consist of revenues generated from the sales of homes and land, equity in earnings (loss) from unconsolidated entities and other income (expense), net, less the cost of homes sold and land sold, selling, general and administrative expenses and other interest expense of the segment. The Company’s reportable homebuilding segments and all other homebuilding operations not required to be reported separately, have homebuilding divisions located in: East: Florida, Georgia, Maryland, New Jersey, North Carolina, South Carolina and Virginia Central: Arizona, Colorado and Texas West: California and Nevada Other: Illinois, Minnesota, Oregon, Tennessee and Washington Operations of the Lennar Financial Services segment include primarily mortgage financing, title insurance and closing services for both buyers of the Company’s homes and others. The Lennar Financial Services segment sells substantially all of the loans it originates within a short period in the secondary mortgage market, the majority of which are sold on a servicing released, non-recourse basis. After the loans are sold, the Company retains potential liability for possible claims by purchasers that it breached certain limited industry-standard representations and warranties in the loan sale agreements. Lennar Financial Services’ operating earnings consist of revenues generated primarily from mortgage financing, title insurance and closing services, less the cost of such services and certain selling, general and administrative expenses incurred by the segment. The Lennar Financial Services segment operates generally in the same states as the Company’s homebuilding operations as well as in other states. Operations of the Rialto segment include raising, investing and managing third-party capital, originating and securitizing commercial mortgage loans as well as investing its own capital in real estate related mortgage loans, properties and related securities. Rialto utilizes its vertically-integrated investment and operating platform to underwrite, diligence, acquire, manage, workout and add value to diverse portfolios of real estate loans, properties and real estate related securities as well as providing strategic real estate capital. Rialto’s operating earnings consist of revenues generated primarily from gains from securitization transactions and interest income from the RMF business, interest income associated with portfolios of real estate loans acquired and other portfolios of real estate loans and assets acquired, asset management, due diligence and underwriting fees derived from the real estate investment funds managed by the Rialto segment, fees for sub-advisory services, other income (expense), net, and equity in earnings (loss) from unconsolidated entities, less the costs incurred by the segment for managing portfolios, costs related to RMF and other general and administrative expenses. Operations of the Lennar Multifamily segment include revenues generated from land sales, revenue from construction activities and management fees generated from joint ventures, and equity in earnings (loss) from unconsolidated entities, less the cost of land sold, expenses related to construction activities and general and administrative expenses. Each reportable segment follows the same accounting policies described in Note 1—"Summary of Significant Accounting Policies" to the consolidated financial statements. Operational results of each segment are not necessarily indicative of the results that would have occurred had the segment been an independent, stand-alone entity during the periods presented. Financial information relating to the Company’s operations was as follows:
The assets and liabilities related to the Lennar Financial Services segment were as follows:
At November 30, 2016, the Lennar Financial Services segment warehouse facilities were as follows:
The assets and liabilities related to the Rialto segment were as follows:
For the years ended November 30, 2016, 2015 and 2014, Rialto costs and expenses included loan impairments of $18.2 million, $10.4 million and $57.1 million, respectively, primarily associated with the segment's FDIC loans portfolio (before noncontrolling interests). For the years ended November 30, 2016, 2015 and 2014, Rialto operating earnings included net earnings (loss) attributable to noncontrolling interests of ($18.8) million, $4.8 million and ($22.5) million, respectively. The following is a detail of Rialto other income (expense), net:
Loans Receivable The following table represents loans receivable, net by type:
The nonaccrual loan portfolios consist primarily of loans acquired at a discount. In 2010, the Rialto segment acquired indirectly 40% managing member equity interests in two limited liability companies in partnership with the FDIC ("FDIC Portfolios"). The LLCs met the accounting definition of VIEs and since the Company was determined to be the primary beneficiary, the Company consolidated the LLCs. The Company was determined to be the primary beneficiary because it has the power to direct the activities of the LLCs that most significantly impact the LLCs' performance through Rialto's management and servicer contracts. At November 30, 2016 and 2015, these consolidated LLCs had total combined assets of $213.8 million and $355.2 million, respectively, and liabilities of $10.3 million and $11.3 million, respectively. In addition, in 2010 Rialto acquired 400 distressed residential and commercial real estate loans ("Bank Portfolios") and over 300 REO properties from three financial institutions. Based on the nature of these loans, the portfolios are managed by assessing the risks related to the likelihood of collection of payments from borrowers and guarantors, as well as monitoring the value of the underlying collateral. As of November 30, 2016 and 2015, management classified all loans receivable within the FDIC Portfolios and Bank Portfolios as nonaccrual loans as forecasted principal and interest cannot be reasonably estimated, and therefore, the Company accounts for these assets in accordance with ASC 310-10, Receivables. As of November 30, 2016, accrual loans included floating and fixed rate commercial property loans maturing between October 2017 and June 2018. Accrual loans as of November 30, 2015 included $17.1 million of convertible land loans that matured and were settled in July 2016 and $59.1 million of floating and fixed rate commercial property loans that were maturing between May 2016 and July 2018. The following tables represent nonaccrual loans in the FDIC Portfolios and Bank Portfolios accounted for under ASC 310-10 aggregated by collateral type: November 30, 2016
November 30, 2015
The average recorded investment in impaired loans totaled approximately $68 million and $109 million for the years ended November 30, 2016 and 2015, respectively. In order to assess the risk associated with each risk category, management evaluates the forecasted cash flows and the value of the underlying collateral securing the loans receivable on a quarterly basis or when an event occurs that suggests a decline in the collateral’s fair value. Allowance for Loan Losses The allowance for loan losses is a valuation reserve established through provisions for loan losses charged against Rialto’s operating earnings. For nonaccrual loans, the risk relates to a decline in the value of the collateral securing the outstanding obligation. If the recorded investment in the nonaccrual loan exceeds its fair value, an impairment is recognized through an allowance for loan losses. The activity in the Company's allowance rollforward related to nonaccrual loans was as follows:
For accrual loans an allowance is calculated based on a review of individual loans considered impaired. The analysis of impaired losses may be based on the present value of expected future cash flows discounted at the effective loan rate, an observable market price or the fair value of the underlying collateral on collateral dependent loans. In determining the collectability of certain loans, management also considers the fair value of any underlying collateral. Based on management's assessment, no allowance for loan losses were recorded for Rialto's accrual loans as of November 30, 2016 and 2015, respectively. Real Estate Owned The acquisition of properties acquired through, or in lieu of, loan foreclosure are reported within the consolidated balance sheets as REO held-and-used, net and REO held-for-sale. The following tables present the activity in REO:
For the years ended November 30, 2016, 2015 and 2014, the Company recorded net gains (losses) of $1.3 million, ($1.3) million and ($6.8) million, respectively, from acquisitions of REO through foreclosure. These net gains (losses) are recorded in Rialto other income (expense), net. Rialto Mortgage Finance - loans held-for-sale During the year ended November 30, 2016, RMF originated loans with a total principal balance of $1.8 billion, of which $1.7 billion were recorded as loans held-for-sale and $81.2 million were recorded as accrual loans within loans receivable, net, and sold $1.9 billion of loans into 11 separate securitizations. During the year ended November 30, 2015, RMF originated loans with a principal balance of $2.7 billion of which $2.6 billion were recorded as loans held-for-sale and $62.3 million were recorded as accrual loans within loans receivable, net, and sold $2.4 billion of loans into 12 separate securitizations. As of November 30, 2016 and 2015, originated loans with an unpaid principal balance of $199.8 million and $151.8 million, respectively, were sold into a securitization trust but not settled and thus were included as receivables, net. Notes and Other Debts Payable The Rialto segment has $350 million aggregate principal amount of the 7.00% senior notes due 2018 (the "7.00% Senior Notes"). Interest on the 7.00% Senior Notes is due semi-annually. As of November 30, 2016 and 2015, the carrying amount, net of debt issuance costs, of the 7.00% Senior Notes was $348.7 million and $347.9 million, respectively. Under the indenture, Rialto is subject to certain covenants limiting, among other things, Rialto’s ability to incur indebtedness, to make investments, to make distributions to, or enter into transactions with, Lennar or to create liens, subject to certain exceptions and qualifications. Rialto also has quarterly and annual reporting requirements, similar to an SEC registrant, to holders of the 7.00% Senior Notes. The Company believes Rialto was in compliance with its debt covenants at November 30, 2016. At November 30, 2016, Rialto warehouse facilities were as follows:
Borrowings under the facilities that finance RMF's loan originations and securitization activities were $180.2 million and $317.1 million as of November 30, 2016 and 2015, respectively, and were secured by a 75% interest in the originated commercial loans financed. The facilities require immediate repayment of the 75% interest in the secured commercial loans when the loans are sold in a securitization and the proceeds are collected. These warehouse repurchase facilities are non-recourse to the Company and are expected to be renewed or replaced with other facilities when they mature. In November 2016, Rialto paid the remaining outstanding principal amount of $30.3 million related to a $124 million senior unsecured note provided by one of the selling institutions in the Bank Portfolios and REO properties transaction. In 2014, Rialto issued two notes with a principal amount of $94.7 million through structured note offerings (the "Structured Notes") at a price of 100% and 99.5%, respectively, with annual coupon rates of 2.85%. and 5.00%, respectively, and collateralized by certain assets originally acquired in the Bank Portfolios. As of November 30, 2016 and 2015, the remaining outstanding principal amount, net of debt issuance costs, related to the Structured Notes was $23.9 million and $31.3 million, respectively and the estimated final payment date is December 15, 2017. Investments Generally, all of Rialto's investments in funds have the attributes of an investment company in accordance with ASC 946, Financial Services – Investment Companies, as amended by ASU 2013-08, Financial Services - Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements, the attributes of which are different from the attributes that would cause a company to be an investment company for purposes of the Investment Company Act of 1940. As a result, the assets and liabilities of the funds in which Rialto has investments in are recorded at fair value with increases/decreases in fair value recorded in their respective statements of operations and the Company’s share recorded in Rialto equity in earnings from unconsolidated entities in the Company's statement of operations. The following table reflects Rialto's investments in funds that invest in and manage real estate related assets and other investments:
Rialto's share of earnings (loss) from unconsolidated entities was as follows:
During the years ended November 30, 2016, 2015 and 2014, Rialto received $10.1 million, $20.0 million and $34.7 million, respectively, of advance distributions with regard to Rialto's carried interests in its real estate funds in order to cover income tax obligations resulting from allocations of taxable income to Rialto's carried interests in these funds. These advance distributions are not subject to clawbacks and therefore are included in Rialto's revenues. During 2015, Rialto adopted a Carried Interest Incentive Plan (the "Plan"), under which participating employees in the aggregate may receive up to 40% of the equity units of a limited liability company (a "Carried Interest Entity") that is entitled to distributions made by a fund or other investment vehicle (a "Fund") managed by a subsidiary of Rialto. As such, those employees receiving equity units in a Carried Interest Entity may benefit from distributions made by a Fund to the extent the Carried Interest Entity makes distributions to its equity holders. The units issued to employees are equity awards and are subject to vesting schedules and forfeiture or repurchase provisions in the case of a termination of employment. Summarized condensed financial information on a combined 100% basis related to Rialto’s investments in unconsolidated entities that are accounted for by the equity method was as follows:
At November 30, 2016 and 2015, the carrying value of Rialto's non-investment grade commercial mortgage-backed securities ("CMBS") was $71.3 million and $25.6 million, respectively. These securities were purchased at discount rates ranging from 39% to 72% with coupon rates ranging from 1.3% to 4.0%, stated and assumed final distribution dates between November 2020 and November 2026, and stated maturity dates between November 2048 and March 2059. The Rialto segment reviews changes in estimated cash flows periodically to determine if an other-than-temporary impairment has occurred on its CMBS. Based on management’s assessment, no impairment charges were recorded during any of the years ended November 30, 2016, 2015 and 2014. The Rialto segment classified these securities as held-to-maturity based on its intent and ability to hold the securities until maturity. In 2014, the Rialto segment invested $18 million in a private commercial real estate services company. The investment was carried at cost at November 30, 2016 and 2015 and is included in Rialto's other assets.Lennar Multifamily SegmentThe Company is actively involved, primarily through unconsolidated entities, in the development, construction and property management of multifamily rental properties. The Lennar Multifamily segment focuses on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S. markets. The assets and liabilities related to the Lennar Multifamily segment were as follows:
The unconsolidated entities in which the Lennar Multifamily segment has investments usually finance their activities with a combination of partner equity and debt financing. In connection with many of the loans to Lennar Multifamily unconsolidated entities, the Company (or entities related to them) has been required to give guarantees of completion and cost over-runs to the lenders and partners. Those completion guarantees may require that the guarantors complete the construction of the improvements for which the financing was obtained. If the construction is to be done in phases, the guarantee generally is limited to completing only the phases as to which construction has already commenced and for which loan proceeds were used. Additionally, the Company guarantees the construction costs of the project as construction cost over-runs would be paid by the Company. Generally, these payments would be increases to the Company's investment in the entities and would increase its share of funds the entities distribute after the achievement of certain thresholds. As of both November 30, 2016 and 2015, the fair value of the completion guarantees was immaterial. Additionally, as of November 30, 2016 and 2015, the Lennar Multifamily segment had $32.0 million and $37.9 million, respectively, of letters of credit outstanding primarily for credit enhancements for the bank debt of certain of its unconsolidated entities and deposits on land purchase contracts. These letters of credit outstanding are included in the disclosure in Note 6 related to the Company's performance and financial letters of credit. As of November 30, 2016 and 2015, the Lennar Multifamily segment's unconsolidated entities had non-recourse debt with completion guarantees of $589.4 million and $466.7 million, respectively. In many instances, the Lennar Multifamily segment is appointed as the construction, development and property manager of certain of its Lennar Multifamily unconsolidated entities and receives fees for performing this function. During the years ended November 30, 2016, 2015 and 2014, the Lennar Multifamily segment received fee income, net of deferrals, from its unconsolidated entities of $38.5 million, $27.2 million and $13.5 million, respectively. The Lennar Multifamily segment also provides general contractor services for construction of some of the rental properties owned by unconsolidated entities in which the Company has investments. During the years ended November 30, 2016, 2015 and 2014, the Lennar Multifamily segment provided general contractor services, net of deferrals, totaling $237.1 million, $142.7 million and $50.9 million, respectively, which were partially offset by costs related to those services of $228.6 million, $138.6 million and $49.0 million, respectively. In 2015, the Lennar Multifamily segment completed the initial closing of the Lennar Multifamily Venture (the "Venture") for the development, construction and property management of class-A multifamily assets with $1.1 billion of commitments. During the year ended November 30, 2016, the Venture received an additional $1.1 billion of equity commitments completing the fund raising for the Venture and increasing its total commitments to $2.2 billion, including a $504 million co-investment commitment by Lennar comprised of cash, undeveloped land and preacquisition costs. During the year ended November 30, 2016, $656.1 million in equity commitments were called, of which the Company contributed its portion of $203.8 million. During the year ended November 30, 2016, the Company received net distributions of $113.7 million as return of capital from the Venture when bringing new investors into the Venture. As of November 30, 2016, $931.6 million of the $2.2 billion in equity commitments had been called, of which the Company has contributed $215.8 million representing its pro-rata portion of the called equity, resulting in a remaining equity commitment for the Company of $288.2 million. As of November 30, 2016 and 2015, the carrying value of the Company's investment in the Venture was $198.2 million and $122.5 million, respectively. Summarized condensed financial information on a combined 100% basis related to Lennar Multifamily's investments in unconsolidated entities that are accounted for by the equity method was as follows:
(1) During the year ended November 30, 2016, Lennar Multifamily equity in earnings from unconsolidated entities included the segment's $91.0 million share of gains as a result of the sale of seven operating properties by its unconsolidated entities. During the years ended November 30, 2015 and 2014, Lennar Multifamily equity in earnings from unconsolidated entities included the segment's $22.2 million and $14.7 million share of gains, respectively, as a result of the sale of two operating properties each year by its unconsolidated entities.
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating And Reporting Segments | Operating and Reporting Segments As of and for the year ended November 30, 2016, the Company’s operating segments are aggregated into reportable segments, based primarily upon similar economic characteristics, geography and product type. The Company’s reportable segments consist of:
During the fourth quarter of 2016, the Company evaluated all of its reportable segments and as the Houston operating division, which previously had been reported a separate reportable segment, did not meet the reportable criteria set forth in ASC 280, Segment Reporting ("ASC 280"), the Company aggregated this operating division into the Homebuilding Central reportable segment as this division exhibits similar economic characteristics, geography and product type as the other divisions in Homebuilding Central. In addition, during the first quarter of 2016, the Company made the decision to divide the Southeast Florida operating division into two operating segments to maximize operational efficiencies given the continued growth of the division. As a result of this change in management structure, the Company re-evaluated its reportable segments and determined that neither operating segment met the reportable criteria set forth in ASC 280. The Company aggregated these operating segments into the Homebuilding East reportable segment as these divisions exhibit similar economic characteristics, geography and product type as the other divisions in Homebuilding East. All prior year segment information has been restated to conform with the 2016 presentation. The changes in the reportable segments have no effect on the Company's consolidated financial position, results of operations or cash flows for the periods presented. Information about homebuilding activities in states which are not economically similar to other states in the same geographic area is grouped under "Homebuilding Other," which is not considered a reportable segment. Evaluation of segment performance is based primarily on operating earnings (loss) before income taxes. Operations of the Company’s homebuilding segments primarily include the construction and sale of single-family attached and detached homes, as well as the purchase, development and sale of residential land directly and through the Company’s unconsolidated entities. Operating earnings (loss) for the homebuilding segments consist of revenues generated from the sales of homes and land, equity in earnings (loss) from unconsolidated entities and other income (expense), net, less the cost of homes sold and land sold, selling, general and administrative expenses and other interest expense of the segment. The Company’s reportable homebuilding segments and all other homebuilding operations not required to be reported separately, have homebuilding divisions located in: East: Florida, Georgia, Maryland, New Jersey, North Carolina, South Carolina and Virginia Central: Arizona, Colorado and Texas West: California and Nevada Other: Illinois, Minnesota, Oregon, Tennessee and Washington Operations of the Lennar Financial Services segment include primarily mortgage financing, title insurance and closing services for both buyers of the Company’s homes and others. The Lennar Financial Services segment sells substantially all of the loans it originates within a short period in the secondary mortgage market, the majority of which are sold on a servicing released, non-recourse basis. After the loans are sold, the Company retains potential liability for possible claims by purchasers that it breached certain limited industry-standard representations and warranties in the loan sale agreements. Lennar Financial Services’ operating earnings consist of revenues generated primarily from mortgage financing, title insurance and closing services, less the cost of such services and certain selling, general and administrative expenses incurred by the segment. The Lennar Financial Services segment operates generally in the same states as the Company’s homebuilding operations as well as in other states. Operations of the Rialto segment include raising, investing and managing third-party capital, originating and securitizing commercial mortgage loans as well as investing its own capital in real estate related mortgage loans, properties and related securities. Rialto utilizes its vertically-integrated investment and operating platform to underwrite, diligence, acquire, manage, workout and add value to diverse portfolios of real estate loans, properties and real estate related securities as well as providing strategic real estate capital. Rialto’s operating earnings consist of revenues generated primarily from gains from securitization transactions and interest income from the RMF business, interest income associated with portfolios of real estate loans acquired and other portfolios of real estate loans and assets acquired, asset management, due diligence and underwriting fees derived from the real estate investment funds managed by the Rialto segment, fees for sub-advisory services, other income (expense), net, and equity in earnings (loss) from unconsolidated entities, less the costs incurred by the segment for managing portfolios, costs related to RMF and other general and administrative expenses. Operations of the Lennar Multifamily segment include revenues generated from land sales, revenue from construction activities and management fees generated from joint ventures, and equity in earnings (loss) from unconsolidated entities, less the cost of land sold, expenses related to construction activities and general and administrative expenses. Each reportable segment follows the same accounting policies described in Note 1—"Summary of Significant Accounting Policies" to the consolidated financial statements. Operational results of each segment are not necessarily indicative of the results that would have occurred had the segment been an independent, stand-alone entity during the periods presented. Financial information relating to the Company’s operations was as follows:
The assets and liabilities related to the Lennar Financial Services segment were as follows:
At November 30, 2016, the Lennar Financial Services segment warehouse facilities were as follows:
The assets and liabilities related to the Rialto segment were as follows:
For the years ended November 30, 2016, 2015 and 2014, Rialto costs and expenses included loan impairments of $18.2 million, $10.4 million and $57.1 million, respectively, primarily associated with the segment's FDIC loans portfolio (before noncontrolling interests). For the years ended November 30, 2016, 2015 and 2014, Rialto operating earnings included net earnings (loss) attributable to noncontrolling interests of ($18.8) million, $4.8 million and ($22.5) million, respectively. The following is a detail of Rialto other income (expense), net:
Loans Receivable The following table represents loans receivable, net by type:
The nonaccrual loan portfolios consist primarily of loans acquired at a discount. In 2010, the Rialto segment acquired indirectly 40% managing member equity interests in two limited liability companies in partnership with the FDIC ("FDIC Portfolios"). The LLCs met the accounting definition of VIEs and since the Company was determined to be the primary beneficiary, the Company consolidated the LLCs. The Company was determined to be the primary beneficiary because it has the power to direct the activities of the LLCs that most significantly impact the LLCs' performance through Rialto's management and servicer contracts. At November 30, 2016 and 2015, these consolidated LLCs had total combined assets of $213.8 million and $355.2 million, respectively, and liabilities of $10.3 million and $11.3 million, respectively. In addition, in 2010 Rialto acquired 400 distressed residential and commercial real estate loans ("Bank Portfolios") and over 300 REO properties from three financial institutions. Based on the nature of these loans, the portfolios are managed by assessing the risks related to the likelihood of collection of payments from borrowers and guarantors, as well as monitoring the value of the underlying collateral. As of November 30, 2016 and 2015, management classified all loans receivable within the FDIC Portfolios and Bank Portfolios as nonaccrual loans as forecasted principal and interest cannot be reasonably estimated, and therefore, the Company accounts for these assets in accordance with ASC 310-10, Receivables. As of November 30, 2016, accrual loans included floating and fixed rate commercial property loans maturing between October 2017 and June 2018. Accrual loans as of November 30, 2015 included $17.1 million of convertible land loans that matured and were settled in July 2016 and $59.1 million of floating and fixed rate commercial property loans that were maturing between May 2016 and July 2018. The following tables represent nonaccrual loans in the FDIC Portfolios and Bank Portfolios accounted for under ASC 310-10 aggregated by collateral type: November 30, 2016
November 30, 2015
The average recorded investment in impaired loans totaled approximately $68 million and $109 million for the years ended November 30, 2016 and 2015, respectively. In order to assess the risk associated with each risk category, management evaluates the forecasted cash flows and the value of the underlying collateral securing the loans receivable on a quarterly basis or when an event occurs that suggests a decline in the collateral’s fair value. Allowance for Loan Losses The allowance for loan losses is a valuation reserve established through provisions for loan losses charged against Rialto’s operating earnings. For nonaccrual loans, the risk relates to a decline in the value of the collateral securing the outstanding obligation. If the recorded investment in the nonaccrual loan exceeds its fair value, an impairment is recognized through an allowance for loan losses. The activity in the Company's allowance rollforward related to nonaccrual loans was as follows:
For accrual loans an allowance is calculated based on a review of individual loans considered impaired. The analysis of impaired losses may be based on the present value of expected future cash flows discounted at the effective loan rate, an observable market price or the fair value of the underlying collateral on collateral dependent loans. In determining the collectability of certain loans, management also considers the fair value of any underlying collateral. Based on management's assessment, no allowance for loan losses were recorded for Rialto's accrual loans as of November 30, 2016 and 2015, respectively. Real Estate Owned The acquisition of properties acquired through, or in lieu of, loan foreclosure are reported within the consolidated balance sheets as REO held-and-used, net and REO held-for-sale. The following tables present the activity in REO:
For the years ended November 30, 2016, 2015 and 2014, the Company recorded net gains (losses) of $1.3 million, ($1.3) million and ($6.8) million, respectively, from acquisitions of REO through foreclosure. These net gains (losses) are recorded in Rialto other income (expense), net. Rialto Mortgage Finance - loans held-for-sale During the year ended November 30, 2016, RMF originated loans with a total principal balance of $1.8 billion, of which $1.7 billion were recorded as loans held-for-sale and $81.2 million were recorded as accrual loans within loans receivable, net, and sold $1.9 billion of loans into 11 separate securitizations. During the year ended November 30, 2015, RMF originated loans with a principal balance of $2.7 billion of which $2.6 billion were recorded as loans held-for-sale and $62.3 million were recorded as accrual loans within loans receivable, net, and sold $2.4 billion of loans into 12 separate securitizations. As of November 30, 2016 and 2015, originated loans with an unpaid principal balance of $199.8 million and $151.8 million, respectively, were sold into a securitization trust but not settled and thus were included as receivables, net. Notes and Other Debts Payable The Rialto segment has $350 million aggregate principal amount of the 7.00% senior notes due 2018 (the "7.00% Senior Notes"). Interest on the 7.00% Senior Notes is due semi-annually. As of November 30, 2016 and 2015, the carrying amount, net of debt issuance costs, of the 7.00% Senior Notes was $348.7 million and $347.9 million, respectively. Under the indenture, Rialto is subject to certain covenants limiting, among other things, Rialto’s ability to incur indebtedness, to make investments, to make distributions to, or enter into transactions with, Lennar or to create liens, subject to certain exceptions and qualifications. Rialto also has quarterly and annual reporting requirements, similar to an SEC registrant, to holders of the 7.00% Senior Notes. The Company believes Rialto was in compliance with its debt covenants at November 30, 2016. At November 30, 2016, Rialto warehouse facilities were as follows:
Borrowings under the facilities that finance RMF's loan originations and securitization activities were $180.2 million and $317.1 million as of November 30, 2016 and 2015, respectively, and were secured by a 75% interest in the originated commercial loans financed. The facilities require immediate repayment of the 75% interest in the secured commercial loans when the loans are sold in a securitization and the proceeds are collected. These warehouse repurchase facilities are non-recourse to the Company and are expected to be renewed or replaced with other facilities when they mature. In November 2016, Rialto paid the remaining outstanding principal amount of $30.3 million related to a $124 million senior unsecured note provided by one of the selling institutions in the Bank Portfolios and REO properties transaction. In 2014, Rialto issued two notes with a principal amount of $94.7 million through structured note offerings (the "Structured Notes") at a price of 100% and 99.5%, respectively, with annual coupon rates of 2.85%. and 5.00%, respectively, and collateralized by certain assets originally acquired in the Bank Portfolios. As of November 30, 2016 and 2015, the remaining outstanding principal amount, net of debt issuance costs, related to the Structured Notes was $23.9 million and $31.3 million, respectively and the estimated final payment date is December 15, 2017. Investments Generally, all of Rialto's investments in funds have the attributes of an investment company in accordance with ASC 946, Financial Services – Investment Companies, as amended by ASU 2013-08, Financial Services - Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements, the attributes of which are different from the attributes that would cause a company to be an investment company for purposes of the Investment Company Act of 1940. As a result, the assets and liabilities of the funds in which Rialto has investments in are recorded at fair value with increases/decreases in fair value recorded in their respective statements of operations and the Company’s share recorded in Rialto equity in earnings from unconsolidated entities in the Company's statement of operations. The following table reflects Rialto's investments in funds that invest in and manage real estate related assets and other investments:
Rialto's share of earnings (loss) from unconsolidated entities was as follows:
During the years ended November 30, 2016, 2015 and 2014, Rialto received $10.1 million, $20.0 million and $34.7 million, respectively, of advance distributions with regard to Rialto's carried interests in its real estate funds in order to cover income tax obligations resulting from allocations of taxable income to Rialto's carried interests in these funds. These advance distributions are not subject to clawbacks and therefore are included in Rialto's revenues. During 2015, Rialto adopted a Carried Interest Incentive Plan (the "Plan"), under which participating employees in the aggregate may receive up to 40% of the equity units of a limited liability company (a "Carried Interest Entity") that is entitled to distributions made by a fund or other investment vehicle (a "Fund") managed by a subsidiary of Rialto. As such, those employees receiving equity units in a Carried Interest Entity may benefit from distributions made by a Fund to the extent the Carried Interest Entity makes distributions to its equity holders. The units issued to employees are equity awards and are subject to vesting schedules and forfeiture or repurchase provisions in the case of a termination of employment. Summarized condensed financial information on a combined 100% basis related to Rialto’s investments in unconsolidated entities that are accounted for by the equity method was as follows:
At November 30, 2016 and 2015, the carrying value of Rialto's non-investment grade commercial mortgage-backed securities ("CMBS") was $71.3 million and $25.6 million, respectively. These securities were purchased at discount rates ranging from 39% to 72% with coupon rates ranging from 1.3% to 4.0%, stated and assumed final distribution dates between November 2020 and November 2026, and stated maturity dates between November 2048 and March 2059. The Rialto segment reviews changes in estimated cash flows periodically to determine if an other-than-temporary impairment has occurred on its CMBS. Based on management’s assessment, no impairment charges were recorded during any of the years ended November 30, 2016, 2015 and 2014. The Rialto segment classified these securities as held-to-maturity based on its intent and ability to hold the securities until maturity. In 2014, the Rialto segment invested $18 million in a private commercial real estate services company. The investment was carried at cost at November 30, 2016 and 2015 and is included in Rialto's other assets.Lennar Multifamily SegmentThe Company is actively involved, primarily through unconsolidated entities, in the development, construction and property management of multifamily rental properties. The Lennar Multifamily segment focuses on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S. markets. The assets and liabilities related to the Lennar Multifamily segment were as follows:
The unconsolidated entities in which the Lennar Multifamily segment has investments usually finance their activities with a combination of partner equity and debt financing. In connection with many of the loans to Lennar Multifamily unconsolidated entities, the Company (or entities related to them) has been required to give guarantees of completion and cost over-runs to the lenders and partners. Those completion guarantees may require that the guarantors complete the construction of the improvements for which the financing was obtained. If the construction is to be done in phases, the guarantee generally is limited to completing only the phases as to which construction has already commenced and for which loan proceeds were used. Additionally, the Company guarantees the construction costs of the project as construction cost over-runs would be paid by the Company. Generally, these payments would be increases to the Company's investment in the entities and would increase its share of funds the entities distribute after the achievement of certain thresholds. As of both November 30, 2016 and 2015, the fair value of the completion guarantees was immaterial. Additionally, as of November 30, 2016 and 2015, the Lennar Multifamily segment had $32.0 million and $37.9 million, respectively, of letters of credit outstanding primarily for credit enhancements for the bank debt of certain of its unconsolidated entities and deposits on land purchase contracts. These letters of credit outstanding are included in the disclosure in Note 6 related to the Company's performance and financial letters of credit. As of November 30, 2016 and 2015, the Lennar Multifamily segment's unconsolidated entities had non-recourse debt with completion guarantees of $589.4 million and $466.7 million, respectively. In many instances, the Lennar Multifamily segment is appointed as the construction, development and property manager of certain of its Lennar Multifamily unconsolidated entities and receives fees for performing this function. During the years ended November 30, 2016, 2015 and 2014, the Lennar Multifamily segment received fee income, net of deferrals, from its unconsolidated entities of $38.5 million, $27.2 million and $13.5 million, respectively. The Lennar Multifamily segment also provides general contractor services for construction of some of the rental properties owned by unconsolidated entities in which the Company has investments. During the years ended November 30, 2016, 2015 and 2014, the Lennar Multifamily segment provided general contractor services, net of deferrals, totaling $237.1 million, $142.7 million and $50.9 million, respectively, which were partially offset by costs related to those services of $228.6 million, $138.6 million and $49.0 million, respectively. In 2015, the Lennar Multifamily segment completed the initial closing of the Lennar Multifamily Venture (the "Venture") for the development, construction and property management of class-A multifamily assets with $1.1 billion of commitments. During the year ended November 30, 2016, the Venture received an additional $1.1 billion of equity commitments completing the fund raising for the Venture and increasing its total commitments to $2.2 billion, including a $504 million co-investment commitment by Lennar comprised of cash, undeveloped land and preacquisition costs. During the year ended November 30, 2016, $656.1 million in equity commitments were called, of which the Company contributed its portion of $203.8 million. During the year ended November 30, 2016, the Company received net distributions of $113.7 million as return of capital from the Venture when bringing new investors into the Venture. As of November 30, 2016, $931.6 million of the $2.2 billion in equity commitments had been called, of which the Company has contributed $215.8 million representing its pro-rata portion of the called equity, resulting in a remaining equity commitment for the Company of $288.2 million. As of November 30, 2016 and 2015, the carrying value of the Company's investment in the Venture was $198.2 million and $122.5 million, respectively. Summarized condensed financial information on a combined 100% basis related to Lennar Multifamily's investments in unconsolidated entities that are accounted for by the equity method was as follows:
(1) During the year ended November 30, 2016, Lennar Multifamily equity in earnings from unconsolidated entities included the segment's $91.0 million share of gains as a result of the sale of seven operating properties by its unconsolidated entities. During the years ended November 30, 2015 and 2014, Lennar Multifamily equity in earnings from unconsolidated entities included the segment's $22.2 million and $14.7 million share of gains, respectively, as a result of the sale of two operating properties each year by its unconsolidated entities.
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating And Reporting Segments | Operating and Reporting Segments As of and for the year ended November 30, 2016, the Company’s operating segments are aggregated into reportable segments, based primarily upon similar economic characteristics, geography and product type. The Company’s reportable segments consist of:
During the fourth quarter of 2016, the Company evaluated all of its reportable segments and as the Houston operating division, which previously had been reported a separate reportable segment, did not meet the reportable criteria set forth in ASC 280, Segment Reporting ("ASC 280"), the Company aggregated this operating division into the Homebuilding Central reportable segment as this division exhibits similar economic characteristics, geography and product type as the other divisions in Homebuilding Central. In addition, during the first quarter of 2016, the Company made the decision to divide the Southeast Florida operating division into two operating segments to maximize operational efficiencies given the continued growth of the division. As a result of this change in management structure, the Company re-evaluated its reportable segments and determined that neither operating segment met the reportable criteria set forth in ASC 280. The Company aggregated these operating segments into the Homebuilding East reportable segment as these divisions exhibit similar economic characteristics, geography and product type as the other divisions in Homebuilding East. All prior year segment information has been restated to conform with the 2016 presentation. The changes in the reportable segments have no effect on the Company's consolidated financial position, results of operations or cash flows for the periods presented. Information about homebuilding activities in states which are not economically similar to other states in the same geographic area is grouped under "Homebuilding Other," which is not considered a reportable segment. Evaluation of segment performance is based primarily on operating earnings (loss) before income taxes. Operations of the Company’s homebuilding segments primarily include the construction and sale of single-family attached and detached homes, as well as the purchase, development and sale of residential land directly and through the Company’s unconsolidated entities. Operating earnings (loss) for the homebuilding segments consist of revenues generated from the sales of homes and land, equity in earnings (loss) from unconsolidated entities and other income (expense), net, less the cost of homes sold and land sold, selling, general and administrative expenses and other interest expense of the segment. The Company’s reportable homebuilding segments and all other homebuilding operations not required to be reported separately, have homebuilding divisions located in: East: Florida, Georgia, Maryland, New Jersey, North Carolina, South Carolina and Virginia Central: Arizona, Colorado and Texas West: California and Nevada Other: Illinois, Minnesota, Oregon, Tennessee and Washington Operations of the Lennar Financial Services segment include primarily mortgage financing, title insurance and closing services for both buyers of the Company’s homes and others. The Lennar Financial Services segment sells substantially all of the loans it originates within a short period in the secondary mortgage market, the majority of which are sold on a servicing released, non-recourse basis. After the loans are sold, the Company retains potential liability for possible claims by purchasers that it breached certain limited industry-standard representations and warranties in the loan sale agreements. Lennar Financial Services’ operating earnings consist of revenues generated primarily from mortgage financing, title insurance and closing services, less the cost of such services and certain selling, general and administrative expenses incurred by the segment. The Lennar Financial Services segment operates generally in the same states as the Company’s homebuilding operations as well as in other states. Operations of the Rialto segment include raising, investing and managing third-party capital, originating and securitizing commercial mortgage loans as well as investing its own capital in real estate related mortgage loans, properties and related securities. Rialto utilizes its vertically-integrated investment and operating platform to underwrite, diligence, acquire, manage, workout and add value to diverse portfolios of real estate loans, properties and real estate related securities as well as providing strategic real estate capital. Rialto’s operating earnings consist of revenues generated primarily from gains from securitization transactions and interest income from the RMF business, interest income associated with portfolios of real estate loans acquired and other portfolios of real estate loans and assets acquired, asset management, due diligence and underwriting fees derived from the real estate investment funds managed by the Rialto segment, fees for sub-advisory services, other income (expense), net, and equity in earnings (loss) from unconsolidated entities, less the costs incurred by the segment for managing portfolios, costs related to RMF and other general and administrative expenses. Operations of the Lennar Multifamily segment include revenues generated from land sales, revenue from construction activities and management fees generated from joint ventures, and equity in earnings (loss) from unconsolidated entities, less the cost of land sold, expenses related to construction activities and general and administrative expenses. Each reportable segment follows the same accounting policies described in Note 1—"Summary of Significant Accounting Policies" to the consolidated financial statements. Operational results of each segment are not necessarily indicative of the results that would have occurred had the segment been an independent, stand-alone entity during the periods presented. Financial information relating to the Company’s operations was as follows:
The assets and liabilities related to the Lennar Financial Services segment were as follows:
At November 30, 2016, the Lennar Financial Services segment warehouse facilities were as follows:
The assets and liabilities related to the Rialto segment were as follows:
For the years ended November 30, 2016, 2015 and 2014, Rialto costs and expenses included loan impairments of $18.2 million, $10.4 million and $57.1 million, respectively, primarily associated with the segment's FDIC loans portfolio (before noncontrolling interests). For the years ended November 30, 2016, 2015 and 2014, Rialto operating earnings included net earnings (loss) attributable to noncontrolling interests of ($18.8) million, $4.8 million and ($22.5) million, respectively. The following is a detail of Rialto other income (expense), net:
Loans Receivable The following table represents loans receivable, net by type:
The nonaccrual loan portfolios consist primarily of loans acquired at a discount. In 2010, the Rialto segment acquired indirectly 40% managing member equity interests in two limited liability companies in partnership with the FDIC ("FDIC Portfolios"). The LLCs met the accounting definition of VIEs and since the Company was determined to be the primary beneficiary, the Company consolidated the LLCs. The Company was determined to be the primary beneficiary because it has the power to direct the activities of the LLCs that most significantly impact the LLCs' performance through Rialto's management and servicer contracts. At November 30, 2016 and 2015, these consolidated LLCs had total combined assets of $213.8 million and $355.2 million, respectively, and liabilities of $10.3 million and $11.3 million, respectively. In addition, in 2010 Rialto acquired 400 distressed residential and commercial real estate loans ("Bank Portfolios") and over 300 REO properties from three financial institutions. Based on the nature of these loans, the portfolios are managed by assessing the risks related to the likelihood of collection of payments from borrowers and guarantors, as well as monitoring the value of the underlying collateral. As of November 30, 2016 and 2015, management classified all loans receivable within the FDIC Portfolios and Bank Portfolios as nonaccrual loans as forecasted principal and interest cannot be reasonably estimated, and therefore, the Company accounts for these assets in accordance with ASC 310-10, Receivables. As of November 30, 2016, accrual loans included floating and fixed rate commercial property loans maturing between October 2017 and June 2018. Accrual loans as of November 30, 2015 included $17.1 million of convertible land loans that matured and were settled in July 2016 and $59.1 million of floating and fixed rate commercial property loans that were maturing between May 2016 and July 2018. The following tables represent nonaccrual loans in the FDIC Portfolios and Bank Portfolios accounted for under ASC 310-10 aggregated by collateral type: November 30, 2016
November 30, 2015
The average recorded investment in impaired loans totaled approximately $68 million and $109 million for the years ended November 30, 2016 and 2015, respectively. In order to assess the risk associated with each risk category, management evaluates the forecasted cash flows and the value of the underlying collateral securing the loans receivable on a quarterly basis or when an event occurs that suggests a decline in the collateral’s fair value. Allowance for Loan Losses The allowance for loan losses is a valuation reserve established through provisions for loan losses charged against Rialto’s operating earnings. For nonaccrual loans, the risk relates to a decline in the value of the collateral securing the outstanding obligation. If the recorded investment in the nonaccrual loan exceeds its fair value, an impairment is recognized through an allowance for loan losses. The activity in the Company's allowance rollforward related to nonaccrual loans was as follows:
For accrual loans an allowance is calculated based on a review of individual loans considered impaired. The analysis of impaired losses may be based on the present value of expected future cash flows discounted at the effective loan rate, an observable market price or the fair value of the underlying collateral on collateral dependent loans. In determining the collectability of certain loans, management also considers the fair value of any underlying collateral. Based on management's assessment, no allowance for loan losses were recorded for Rialto's accrual loans as of November 30, 2016 and 2015, respectively. Real Estate Owned The acquisition of properties acquired through, or in lieu of, loan foreclosure are reported within the consolidated balance sheets as REO held-and-used, net and REO held-for-sale. The following tables present the activity in REO:
For the years ended November 30, 2016, 2015 and 2014, the Company recorded net gains (losses) of $1.3 million, ($1.3) million and ($6.8) million, respectively, from acquisitions of REO through foreclosure. These net gains (losses) are recorded in Rialto other income (expense), net. Rialto Mortgage Finance - loans held-for-sale During the year ended November 30, 2016, RMF originated loans with a total principal balance of $1.8 billion, of which $1.7 billion were recorded as loans held-for-sale and $81.2 million were recorded as accrual loans within loans receivable, net, and sold $1.9 billion of loans into 11 separate securitizations. During the year ended November 30, 2015, RMF originated loans with a principal balance of $2.7 billion of which $2.6 billion were recorded as loans held-for-sale and $62.3 million were recorded as accrual loans within loans receivable, net, and sold $2.4 billion of loans into 12 separate securitizations. As of November 30, 2016 and 2015, originated loans with an unpaid principal balance of $199.8 million and $151.8 million, respectively, were sold into a securitization trust but not settled and thus were included as receivables, net. Notes and Other Debts Payable The Rialto segment has $350 million aggregate principal amount of the 7.00% senior notes due 2018 (the "7.00% Senior Notes"). Interest on the 7.00% Senior Notes is due semi-annually. As of November 30, 2016 and 2015, the carrying amount, net of debt issuance costs, of the 7.00% Senior Notes was $348.7 million and $347.9 million, respectively. Under the indenture, Rialto is subject to certain covenants limiting, among other things, Rialto’s ability to incur indebtedness, to make investments, to make distributions to, or enter into transactions with, Lennar or to create liens, subject to certain exceptions and qualifications. Rialto also has quarterly and annual reporting requirements, similar to an SEC registrant, to holders of the 7.00% Senior Notes. The Company believes Rialto was in compliance with its debt covenants at November 30, 2016. At November 30, 2016, Rialto warehouse facilities were as follows:
Borrowings under the facilities that finance RMF's loan originations and securitization activities were $180.2 million and $317.1 million as of November 30, 2016 and 2015, respectively, and were secured by a 75% interest in the originated commercial loans financed. The facilities require immediate repayment of the 75% interest in the secured commercial loans when the loans are sold in a securitization and the proceeds are collected. These warehouse repurchase facilities are non-recourse to the Company and are expected to be renewed or replaced with other facilities when they mature. In November 2016, Rialto paid the remaining outstanding principal amount of $30.3 million related to a $124 million senior unsecured note provided by one of the selling institutions in the Bank Portfolios and REO properties transaction. In 2014, Rialto issued two notes with a principal amount of $94.7 million through structured note offerings (the "Structured Notes") at a price of 100% and 99.5%, respectively, with annual coupon rates of 2.85%. and 5.00%, respectively, and collateralized by certain assets originally acquired in the Bank Portfolios. As of November 30, 2016 and 2015, the remaining outstanding principal amount, net of debt issuance costs, related to the Structured Notes was $23.9 million and $31.3 million, respectively and the estimated final payment date is December 15, 2017. Investments Generally, all of Rialto's investments in funds have the attributes of an investment company in accordance with ASC 946, Financial Services – Investment Companies, as amended by ASU 2013-08, Financial Services - Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements, the attributes of which are different from the attributes that would cause a company to be an investment company for purposes of the Investment Company Act of 1940. As a result, the assets and liabilities of the funds in which Rialto has investments in are recorded at fair value with increases/decreases in fair value recorded in their respective statements of operations and the Company’s share recorded in Rialto equity in earnings from unconsolidated entities in the Company's statement of operations. The following table reflects Rialto's investments in funds that invest in and manage real estate related assets and other investments:
Rialto's share of earnings (loss) from unconsolidated entities was as follows:
During the years ended November 30, 2016, 2015 and 2014, Rialto received $10.1 million, $20.0 million and $34.7 million, respectively, of advance distributions with regard to Rialto's carried interests in its real estate funds in order to cover income tax obligations resulting from allocations of taxable income to Rialto's carried interests in these funds. These advance distributions are not subject to clawbacks and therefore are included in Rialto's revenues. During 2015, Rialto adopted a Carried Interest Incentive Plan (the "Plan"), under which participating employees in the aggregate may receive up to 40% of the equity units of a limited liability company (a "Carried Interest Entity") that is entitled to distributions made by a fund or other investment vehicle (a "Fund") managed by a subsidiary of Rialto. As such, those employees receiving equity units in a Carried Interest Entity may benefit from distributions made by a Fund to the extent the Carried Interest Entity makes distributions to its equity holders. The units issued to employees are equity awards and are subject to vesting schedules and forfeiture or repurchase provisions in the case of a termination of employment. Summarized condensed financial information on a combined 100% basis related to Rialto’s investments in unconsolidated entities that are accounted for by the equity method was as follows:
At November 30, 2016 and 2015, the carrying value of Rialto's non-investment grade commercial mortgage-backed securities ("CMBS") was $71.3 million and $25.6 million, respectively. These securities were purchased at discount rates ranging from 39% to 72% with coupon rates ranging from 1.3% to 4.0%, stated and assumed final distribution dates between November 2020 and November 2026, and stated maturity dates between November 2048 and March 2059. The Rialto segment reviews changes in estimated cash flows periodically to determine if an other-than-temporary impairment has occurred on its CMBS. Based on management’s assessment, no impairment charges were recorded during any of the years ended November 30, 2016, 2015 and 2014. The Rialto segment classified these securities as held-to-maturity based on its intent and ability to hold the securities until maturity. In 2014, the Rialto segment invested $18 million in a private commercial real estate services company. The investment was carried at cost at November 30, 2016 and 2015 and is included in Rialto's other assets.Lennar Multifamily SegmentThe Company is actively involved, primarily through unconsolidated entities, in the development, construction and property management of multifamily rental properties. The Lennar Multifamily segment focuses on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S. markets. The assets and liabilities related to the Lennar Multifamily segment were as follows:
The unconsolidated entities in which the Lennar Multifamily segment has investments usually finance their activities with a combination of partner equity and debt financing. In connection with many of the loans to Lennar Multifamily unconsolidated entities, the Company (or entities related to them) has been required to give guarantees of completion and cost over-runs to the lenders and partners. Those completion guarantees may require that the guarantors complete the construction of the improvements for which the financing was obtained. If the construction is to be done in phases, the guarantee generally is limited to completing only the phases as to which construction has already commenced and for which loan proceeds were used. Additionally, the Company guarantees the construction costs of the project as construction cost over-runs would be paid by the Company. Generally, these payments would be increases to the Company's investment in the entities and would increase its share of funds the entities distribute after the achievement of certain thresholds. As of both November 30, 2016 and 2015, the fair value of the completion guarantees was immaterial. Additionally, as of November 30, 2016 and 2015, the Lennar Multifamily segment had $32.0 million and $37.9 million, respectively, of letters of credit outstanding primarily for credit enhancements for the bank debt of certain of its unconsolidated entities and deposits on land purchase contracts. These letters of credit outstanding are included in the disclosure in Note 6 related to the Company's performance and financial letters of credit. As of November 30, 2016 and 2015, the Lennar Multifamily segment's unconsolidated entities had non-recourse debt with completion guarantees of $589.4 million and $466.7 million, respectively. In many instances, the Lennar Multifamily segment is appointed as the construction, development and property manager of certain of its Lennar Multifamily unconsolidated entities and receives fees for performing this function. During the years ended November 30, 2016, 2015 and 2014, the Lennar Multifamily segment received fee income, net of deferrals, from its unconsolidated entities of $38.5 million, $27.2 million and $13.5 million, respectively. The Lennar Multifamily segment also provides general contractor services for construction of some of the rental properties owned by unconsolidated entities in which the Company has investments. During the years ended November 30, 2016, 2015 and 2014, the Lennar Multifamily segment provided general contractor services, net of deferrals, totaling $237.1 million, $142.7 million and $50.9 million, respectively, which were partially offset by costs related to those services of $228.6 million, $138.6 million and $49.0 million, respectively. In 2015, the Lennar Multifamily segment completed the initial closing of the Lennar Multifamily Venture (the "Venture") for the development, construction and property management of class-A multifamily assets with $1.1 billion of commitments. During the year ended November 30, 2016, the Venture received an additional $1.1 billion of equity commitments completing the fund raising for the Venture and increasing its total commitments to $2.2 billion, including a $504 million co-investment commitment by Lennar comprised of cash, undeveloped land and preacquisition costs. During the year ended November 30, 2016, $656.1 million in equity commitments were called, of which the Company contributed its portion of $203.8 million. During the year ended November 30, 2016, the Company received net distributions of $113.7 million as return of capital from the Venture when bringing new investors into the Venture. As of November 30, 2016, $931.6 million of the $2.2 billion in equity commitments had been called, of which the Company has contributed $215.8 million representing its pro-rata portion of the called equity, resulting in a remaining equity commitment for the Company of $288.2 million. As of November 30, 2016 and 2015, the carrying value of the Company's investment in the Venture was $198.2 million and $122.5 million, respectively. Summarized condensed financial information on a combined 100% basis related to Lennar Multifamily's investments in unconsolidated entities that are accounted for by the equity method was as follows:
(1) During the year ended November 30, 2016, Lennar Multifamily equity in earnings from unconsolidated entities included the segment's $91.0 million share of gains as a result of the sale of seven operating properties by its unconsolidated entities. During the years ended November 30, 2015 and 2014, Lennar Multifamily equity in earnings from unconsolidated entities included the segment's $22.2 million and $14.7 million share of gains, respectively, as a result of the sale of two operating properties each year by its unconsolidated entities.
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The benefit (provision) for income taxes consisted of the following:
A reconciliation of the statutory rate and the effective tax rate was as follows:
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of significant temporary differences that give rise to the net deferred tax assets were as follows:
The detail of the Company's net deferred tax assets were as follows:
A reduction of the carrying amounts of deferred tax assets by a valuation allowance is required if, based on the available evidence, it is more likely than not that such assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed each reporting period by the Company based on the consideration of all available positive and negative evidence using a "more-likely-than-not" standard with respect to whether deferred tax assets will be realized. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, actual earnings, forecasts of future profitability, the duration of statutory carryforward periods, the Company’s experience with loss carryforwards not expiring unused and tax planning alternatives. As of November 30, 2016 and 2015, the net deferred tax assets included a valuation allowance of $5.8 million and $5.9 million, respectively, primarily related to state net operating loss ("NOL") carryforwards that are not more likely than not to be utilized due to an inability to carry back these losses in most states and short carryforward periods that exist in certain states. During the years ended November 30, 2016 and 2015, the Company reversed $0.2 million and $2.1 million, respectively, of valuation allowance primarily due to the utilization of state net operating losses. At November 30, 2016 and 2015, the Company had federal tax effected NOL carryforwards totaling $1.8 million and $1.9 million, respectively, that may be carried forward up to 20 years to offset future taxable income and begin to expire in 2029. At November 30, 2016 and 2015, the Company had state tax effected NOL carryforwards totaling $90.6 million and $120.7 million, respectively, that may be carried forward from 5 to 20 years, depending on the tax jurisdiction, with losses expiring between 2017 and 2035. The following table summarizes the changes in gross unrecognized tax benefits:
If the Company were to recognize its gross unrecognized tax benefits as of November 30, 2016, $8.0 million would affect the Company’s effective tax rate. The Company does not expect the total amount of unrecognized tax benefits to increase or decrease by a material amount within the following twelve months. The following summarizes the changes in interest and penalties accrued with respect to gross unrecognized tax benefits:
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Basic and diluted earnings per share were calculated as follows:
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Capital Stock |
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Equity [Abstract] | |
Capital Stock | Capital Stock Preferred Stock The Company is authorized to issue 500,000 shares of preferred stock with a par value of $10 per share and 100 million shares of participating preferred stock with a par value of $0.10 per share. No shares of preferred stock or participating preferred stock have been issued as of November 30, 2016 and 2015. Common Stock During each of the years ended November 30, 2016, 2015 and 2014, the Company’s Class A and Class B common stockholders received a per share annual dividend of $0.16. The only significant difference between the Class A common stock and Class B common stock is that Class A common stock entitles holders to one vote per share and the Class B common stock entitles holders to ten votes per share. As of November 30, 2016, Stuart Miller, the Company’s Chief Executive Officer and a Director, directly owned, or controlled through family-owned entities, shares of Class A and Class B common stock, which represented approximately 42% voting power of the Company’s stock. The Company has a stock repurchase program adopted in 2001, which originally authorized the purchase of up to 20 million shares of its outstanding common stock. During the years ended November 30, 2016, 2015 and 2014, there were no share repurchases of common stock under the stock repurchase program. As of November 30, 2016, the remaining authorized shares that could be purchased under the stock repurchase program were 6.2 million shares of common stock. During the years ended November 30, 2016 and 2015, treasury stock increased by 0.1 million shares and 0.3 million shares, respectively, of Class A common stock primarily due to activity related to the Company's equity compensation plan. Restrictions on Payment of Dividends There are no restrictions on the payment of dividends on common stock by the Company. There are no agreements which restrict the payment of dividends by subsidiaries of the Company other than (i) the need to maintain the financial ratios and net worth requirements under the Lennar Financial Services segment’s warehouse lines of credit, which restrict the payment of dividends from the Company’s mortgage subsidiaries following the occurrence and during the continuance of an event of default thereunder and limit dividends to 50% of net income in the absence of an event of default, and (ii) the restriction under Rialto's 7.00% Senior Notes indenture that limits Rialto's ability to make distributions to Lennar. 401(k) Plan Under the Company’s 401(k) Plan (the "Plan"), contributions made by associates can be invested in a variety of mutual funds or proprietary funds provided by the Plan trustee. The Company may also make contributions for the benefit of associates. The Company records as compensation expense its contribution to the Plan. For the years ended November 30, 2016, 2015 and 2014, this amount was $15.7 million, $13.5 million and $10.2 million, respectively.
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Share-Based Payments |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payments | Share-Based Payments Compensation expense related to the Company’s share-based awards was as follows:
Cash flows resulting from tax benefits related to tax deductions in excess of the compensation expense recognized are classified as financing cash flows. For the years ended November 30, 2016, 2015 and 2014 there was $7.0 million, $0.1 million, and $7.5 million, respectively, of excess tax benefits from share-based awards primarily related to nonvested shares. The fair value of nonvested shares is determined based on the trading price of the Company’s common stock on the grant date. The weighted average fair value of nonvested shares granted during the years ended November 30, 2016, 2015 and 2014 was $45.10, $49.01 and $41.89, respectively. A summary of the Company’s nonvested shares activity for the year ended November 30, 2016 was as follows:
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Financial Instruments and Fair Value Disclosure |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments and Fair Value Disclosure | Financial Instruments and Fair Value Disclosures The following table presents the carrying amounts and estimated fair values of financial instruments held by the Company at November 30, 2016 and 2015, 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.
The following methods and assumptions are used by the Company in estimating fair values: Rialto—The fair values for loans receivable, net are based on the fair value of the collateral less estimated cost to sell or discounted cash flows, if estimable. The fair value for investments held-to-maturity is based on discounted cash flows. For notes and other debts payable, the fair value is calculated based on discounted cash flows using the Company’s weighted average borrowing rate and for the warehouse repurchase financing agreements fair values approximate their carrying value due to their short-term maturities. Lennar Financial Services—The fair values above are based on quoted market prices, if available. The fair values for instruments that do not have quoted market prices are estimated by the Company on the basis of discounted cash flows or other financial information. For notes and other debts payable, the fair values approximate their carrying value due to variable interest pricing terms and the short-term nature of the borrowings. Lennar Homebuilding—For senior notes and other debts payable, the fair value of fixed-rate borrowings is primarily based on quoted market prices and the fair value of variable-rate borrowings is based on expected future cash flows calculated using current market forward rates. Fair Value Measurements GAAP provides a framework for measuring fair value, expands disclosures about fair value measurements and establishes a fair value hierarchy which prioritizes the inputs used in measuring fair value summarized as follows: Level 1: Fair value determined based on quoted prices in active markets for identical assets. Level 2: Fair value determined using significant other observable inputs. Level 3: Fair value determined using significant unobservable inputs. The Company’s financial instruments measured at fair value on a recurring basis are summarized below:
The estimated fair values of the Company’s financial instruments have been determined by 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 following methods and assumptions are used by the Company in estimating fair values: Rialto loans held-for-sale— The fair value of loans held-for-sale is calculated from model-based techniques that use discounted cash flow assumptions and the Company’s own estimates of CMBS spreads, market interest rate movements and the underlying loan credit quality. Loan values are calculated by allocating the change in value of an assumed CMBS capital structure to each loan. The value of an assumed CMBS capital structure is calculated, generally, by discounting the cash flows associated with each CMBS class at market interest rates and at the Company’s own estimate of CMBS spreads. The Company estimates CMBS spreads by observing the pricing of recent CMBS offerings, secondary CMBS markets, changes in the CMBX index, and general capital and commercial real estate market conditions. Considerations in estimating CMBS spreads include comparing the Company’s current loan portfolio with comparable CMBS offerings containing loans with similar duration, credit quality and collateral composition. These methods use unobservable inputs in estimating a discount rate that is used to assign a value to each loan. While the cash payments on the loans are contractual, the discount rate used and assumptions regarding the relative size of each class in the CMBS capital structure can significantly impact the valuation. Therefore, the estimates used could differ materially from the fair value determined when the loans are sold to a securitization trust. Rialto interest rate swaps and swap futures— The fair value of interest rate swaps (derivatives) is based on observable values for underlying interest rates and market determined risk premiums. The fair value of interest rate swap futures (derivatives) is based on quoted market prices for identical investments traded in active markets. Rialto credit default swaps— The fair value of credit default swaps (derivatives) is based on quoted market prices for similar investments traded in active markets. Lennar Financial Services loans held-for-sale— Fair value is based on independent quoted market prices, where available, or the prices for other mortgage whole loans with similar characteristics. Management believes carrying loans held-for-sale at fair value improves financial reporting by mitigating volatility in reported earnings caused by measuring the fair value of the loans and the derivative instruments used to economically hedge them without having to apply complex hedge accounting provisions. In addition, the Company recognizes the fair value of its rights to service a mortgage loan as revenue upon entering into an interest rate lock loan commitment with a borrower. The fair value of these servicing rights is included in Lennar Financial Services’ loans held-for-sale as of November 30, 2016 and 2015. Fair value of servicing rights is determined based on actual sales of servicing rights on loans with similar characteristics. Lennar Financial Services investments available-for-sale— The fair value of these investments is based on the quoted market prices for similar financial instruments. Lennar Financial Services mortgage loan commitments— Fair value of commitments to originate loans is based upon the difference between the current value of similar loans and the price at which the Lennar Financial Services segment has committed to originate the loans. The fair value of commitments to sell loan contracts is the estimated amount that the Lennar Financial Services segment would receive or pay to terminate the commitments at the reporting date based on market prices for similar financial instruments. In addition, the Company recognizes the fair value of its rights to service a mortgage loan as revenue upon entering into an interest rate lock loan commitment with a borrower. The fair value of servicing rights is determined based on actual sales of servicing rights on loans with similar characteristics. The fair value of the mortgage loan commitments and related servicing rights is included in Lennar Financial Services’ other assets. Lennar Financial Services forward contracts— Fair value is based on quoted market prices for similar financial instruments. The fair value of forward contracts is included in the Lennar Financial Services segment's other assets as of November 30, 2016 and November 30, 2015. The Lennar Financial Services segment uses mandatory mortgage-backed securities ("MBS") forward commitments, option contracts and investor commitments to hedge its mortgage-related interest rate exposure. These instruments involve, to varying degrees, elements of credit and interest rate risk. Credit risk associated with MBS forward commitments, option contracts and loan sales transactions is managed by limiting the Company’s counterparties to investment banks, federally regulated bank affiliates and other investors meeting the Company’s credit standards. The segment’s risk, in the event of default by the purchaser, is the difference between the contract price and fair value of the MBS forward commitments and option contracts. At November 30, 2016, the segment had open commitments amounting to $1.2 billion to sell MBS with varying settlement dates through February 2017. Lennar Financial Services mortgage servicing rights — Lennar Financial Services records the value of mortgage servicing rights when it sells loans on a servicing-retained basis or through the acquisition or assumption of the right to service a financial asset. The fair value of the mortgage servicing rights is calculated using third-party valuations. The key assumptions, which are generally unobservable inputs, used in the valuation of the mortgage servicing rights include mortgage prepayment rates, discount rates and delinquency rates. As of November 30, 2016, the key assumptions used in determining the fair value include a 12.9% mortgage prepayment rate, a 12.4% discount rate and a 7.0% delinquency rate. The fair value of mortgage servicing rights is included in the Lennar Financial Services segment's other assets. 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:
Interest on Lennar Financial Services loans held-for-sale and Rialto loans held-for-sale measured at fair value is calculated based on the interest rate of the loan and recorded as revenues in the Lennar Financial Services’ statement of operations and Rialto's statement of operations, respectively. The following table represents the reconciliation of the beginning and ending balance for the Level 3 recurring fair value measurements:
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. The fair values included in the tables below represent only those assets whose carrying values were adjusted to fair value during the respective periods disclosed. The assets measured at fair value on a nonrecurring basis are summarized below:
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Consolidation Of Variable Interest Entities |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidation Of Variable Interest Entities | Consolidation of Variable Interest Entities The Company evaluated the joint venture agreements of its joint ventures that were formed or that had reconsideration events during the year ended November 30, 2016. Based on the Company’s evaluation, during the year ended November 30, 2016, the Company consolidated entities that had total combined assets of $122.1 million and liabilities of $96.4 million. During the year ended November 30, 2016, there were no VIEs that were deconsolidated. The Company’s recorded investments in unconsolidated entities were as follows:
Consolidated VIEs As of November 30, 2016, the carrying amount of the VIEs’ assets and non-recourse liabilities that consolidated was $536.3 million and $126.4 million, respectively. As of November 30, 2015, the carrying amount of the VIEs’ assets and non-recourse liabilities that consolidated was $652.3 million and $84.4 million, respectively. Those assets are owned by, and those liabilities are obligations of, the VIEs, not the Company. A VIE’s assets can only be used to settle obligations of that VIE. The VIEs are not guarantors of the Company’s senior notes and other debts payable. The assets held by a VIE usually are collateral for that VIE’s debt. The Company and other partners do not generally have an obligation to make capital contributions to a VIE unless the Company and/or the other partner(s) have entered into debt guarantees with the VIE’s banks. Other than debt guarantee agreements with a VIE’s banks, there are no liquidity arrangements or agreements to fund capital or purchase assets that could require the Company to provide financial support to a VIE. While the Company has option contracts to purchase land from certain of its VIEs, the Company is not required to purchase the assets and could walk away from the contracts. Unconsolidated VIEs At November 30, 2016 and 2015, the Company’s recorded investments in VIEs that are unconsolidated and its estimated maximum exposure to loss were as follows:
While these entities are VIEs, the Company has determined that the power to direct the activities of the VIEs that most significantly impact the VIEs’ economic performance is generally shared and the Company and its partners are not de-facto agents. While the Company generally manages the day-to-day operations of the VIEs, each of these VIEs has an executive committee made up of representatives from each partner. The members of the executive committee have equal votes and major decisions require unanimous consent and approval from all members. The Company does not have the unilateral ability to exercise participating voting rights without partner consent. As of November 30, 2016, the Company and other partners do not generally have an obligation to make capital contributions to the VIEs, except for $288.2 million remaining equity commitment to fund the Venture for future expenditures related to the construction and development of the projects and $19.7 million of letters of credit outstanding for certain Lennar Multifamily unconsolidated VIEs that could be drawn upon in the event of default under their debt agreements. In addition, there are no liquidity arrangements or agreements to fund capital or purchase assets that could require the Company to provide financial support to the VIEs, except with regard to a $43.4 million repayment guarantee of an unconsolidated entity's debt. Except for the unconsolidated VIEs discussed above, the Company and the other partners did not guarantee any debt of the other unconsolidated VIEs. While the Company has option contracts to purchase land from certain of its unconsolidated VIEs, the Company is not required to purchase the assets and could walk away from the contracts. Option Contracts The Company has access to land through option contracts, which generally enables it to control portions of properties owned by third parties (including land funds) and unconsolidated entities until the Company has determined whether to exercise the option. The Company evaluates all option contracts for land to determine whether they are VIEs and, if so, whether the Company is the primary beneficiary of certain of these option contracts. Although the Company does not have legal title to the optioned land, if the Company is deemed to be the primary beneficiary or makes a significant deposit for optioned land, it may need to consolidate the land under option at the purchase price of the optioned land. During the year ended November 30, 2016, consolidated inventory not owned increased by $62.2 million with a corresponding increase to liabilities related to consolidated inventory not owned in the accompanying consolidated balance sheet as of November 30, 2016. The increase was primarily related to the consolidation of an option agreement, partially offset by the Company exercising its option to acquire land under previously consolidated contracts. To reflect the purchase price of the inventory consolidated, the Company had a net reclass related to option deposits from land under development to consolidated inventory not owned in the accompanying consolidated balance sheet as of November 30, 2016. The liabilities related to consolidated inventory not owned primarily represent the difference between the option exercise prices for the optioned land and the Company’s cash deposits. The Company’s exposure to loss related to its option contracts with third parties and unconsolidated entities consisted of its non-refundable option deposits and pre-acquisition costs totaling $85.0 million and $89.2 million at November 30, 2016 and 2015, respectively. Additionally, the Company had posted $45.1 million and $70.4 million of letters of credit in lieu of cash deposits under certain land and option contracts as of November 30, 2016 and 2015, respectively.
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Commitments And Contingent Liabilities |
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Nov. 30, 2016 | |||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Commitments And Contingent Liabilities | Commitments and Contingent Liabilities The Company is party to various claims, legal actions and complaints arising in the ordinary course of business. In the opinion of management, the disposition of these matters will not have a material adverse effect on the Company’s consolidated financial statements. The Company is also a party to various lawsuits involving purchases and sales of real property. These lawsuits include claims regarding representations and warranties made in connection with the transfer of properties and disputes regarding the obligation to purchase or sell properties. The Company has been engaged in litigation since 2008 in the United States District Court for the District of Maryland regarding whether the Company is required by a contract it entered into in 2005 to purchase a property in Maryland. After entering into the contract, the Company later renegotiated the purchase price, reducing it from $200 million to $134 million, $20 million of which has been paid and subsequently written off, leaving a balance of $114 million. In January 2015, the District Court rendered a decision ordering the Company to purchase the property for the $114 million balance of the contract price, to pay interest at the rate of 12% per annum from May 27, 2008, and to reimburse the seller for real estate taxes and attorneys’ fees. The Company believes the decision is contrary to applicable law and has appealed the decision. The Company does not believe it is probable that a loss has occurred and, therefore, no liability has been recorded with respect to this case. If the District Court decision is affirmed in its entirety, the Company will purchase the property and record it at fair value, which the Company believes will not result in an impairment. The amount of interest the Company will be required to pay has been the subject of further proceedings before the court. On June 29, 2015, the court ruled that interest will be calculated as simple interest at the rate of 12% per annum from May 27, 2008 until the date the Company purchases the property. Simple interest on $114 million at 12% per annum will accrue at the rate of $13.7 million per year, totaling approximately $116 million as of November 30, 2016. In addition, if the Company is required to purchase the property, it will be obligated to reimburse the seller for real estate taxes, which currently total $1.6 million. The Company has not engaged in discovery regarding the amount of the plaintiffs’ attorneys’ fees. If the District Court decision is totally reversed on appeal, the Company will not have to purchase the property or pay interest, real estate taxes or attorneys’ fees. In its June 29, 2015 ruling, the District Court determined that the Company would be permitted to stay the judgment during appeal by posting a bond in the amount of $223.4 million related to pending litigation. The District Court calculated this amount by adding 12% per annum simple interest to the $114 million purchase price for the period beginning May 27, 2008 through May 26, 2016, the date the District Court estimated the appeal of the case would be concluded. The Company does not believe that the ultimate resolution of these claims or lawsuits will have a material adverse effect on its business or financial position. However, the financial effect of litigation concerning purchases and sales of property may depend upon the value of the subject property, which may have changed from the time the agreement for purchase or sale was entered into. The Company is subject to the usual obligations associated with entering into contracts (including option contracts) for the purchase, development and sale of real estate, which it does in the routine conduct of its business. Option contracts generally enable the Company to control portions of properties owned by third parties (including land funds) and unconsolidated entities until the Company determines whether to exercise the option. The use of option contracts allows the Company to reduce the financial risks associated with long-term land holdings. At November 30, 2016, the Company had $85.0 million of non-refundable option deposits and pre-acquisition costs related to certain of these homesites, which were included in inventories in the consolidated balance sheet. The Company has entered into agreements to lease certain office facilities and equipment under operating leases. Future minimum payments under the noncancellable leases in effect at November 30, 2016 were as follows:
Rental expense for the years ended November 30, 2016, 2015 and 2014 was $63.2 million, $55.9 million and $48.9 million, respectively. The Company is committed, under various letters of credit, to perform certain development and construction activities and provide certain guarantees in the normal course of business. Outstanding letters of credit under these arrangements totaled $481.1 million at November 30, 2016. Additionally, at November 30, 2016, the Company had outstanding surety bonds of $1.4 billion including performance surety bonds related to site improvements at various projects (including certain projects in the Company’s joint ventures) and financial surety bonds including $223.4 million related to pending litigation. Although significant development and construction activities have been completed related to these site improvements, these bonds are generally not released until all development and construction activities are completed. As of November 30, 2016, there were approximately $488.9 million, or 42%, of anticipated future costs to complete related to these site improvements. The Company does not presently anticipate any draws upon these bonds that would have a material effect on its consolidated financial statements. Substantially all of the loans the Lennar Financial Services segment originates are sold within a short period in the secondary mortgage market on a servicing released, non-recourse basis. After the loans are sold, the Company retains potential liability for possible claims by purchasers that it breached certain limited industry-standard representations and warranties in the loan sale agreements. Over the last several years there has been an industry-wide effort by purchasers to defray their losses by purporting to have found inaccuracies related to sellers’ representations and warranties in particular loan sale agreements. Mortgage investors could seek to have the Company buy back mortgage loans or compensate them for losses incurred on mortgage loans that the Company has sold based on claims that the Company breached its limited representations or warranties. The Company’s mortgage operations have established reserves for possible losses associated with mortgage loans previously originated and sold to investors. While the Company believes that it has adequately reserved for known losses and projected repurchase requests, given the volatility in the mortgage industry and the uncertainty regarding the ultimate resolution of these claims, if either actual repurchases or the losses incurred resolving those repurchases exceed the Company’s expectations, additional recourse expense may be incurred.
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Business Acquisition |
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Nov. 30, 2016 | |
Business Combinations [Abstract] | |
Business Acquisition | Business AcquisitionOn September 22, 2016, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with WCI, under which the Company will acquire WCI through a merger for a combination of the Company’s Class A common stock and cash totaling $23.50 per share of WCI common stock. It is currently anticipated that the merger consideration payable to WCI stockholders will be $11.75 in cash and $11.75 in Class A common stock, with the Class A common stock valued at the average of its volume weighted average price on the New York Stock Exchange ("NYSE") on each of the ten NYSE trading days before closing. However, the Company has the right to reduce the portion of the merger consideration that will be Class A common stock and increase the portion that will be cash, including the right to make the entire merger consideration cash. WCI can terminate the Merger Agreement to engage in a transaction that its Board of Directors deems to be more favorable to its stockholders than the transaction with the Company, unless the Company will match the deemed more favorable transaction. However, if WCI terminates the Merger Agreement to engage in another transaction, it will have to pay the Company a termination fee of $22.5 million. The Merger Agreement contains customary representations and warranties by the parties, and is subject to closing conditions, including the need for approval by the holders of WCI’s common stock. It is anticipated that a meeting of WCI stockholders to vote on the transaction will be held in February 2017, and, if the transaction is approved by the WCI stockholders, it will close promptly after the stockholder vote. |
Supplemental Financial Information |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Financial Information | Supplemental Financial Information 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, 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 November 30, 2016 they were guaranteeing Lennar Corporation's letter of credit facilities and its Credit Facility, described 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 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, 2016 was as follows:
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Quarterly Data (unaudited) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Data (unaudited) | Quarterly Data (unaudited)
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Schedule II-Valuation And Qualifying Accounts |
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Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule II-Valuation And Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts Years Ended November 30, 2016, 2015 and 2014
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Summary Of Significant Accounting Policies (Policy) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||
Basis Of Consolidation | The accompanying consolidated financial statements include the accounts of Lennar Corporation and all subsidiaries, partnerships and other entities in which Lennar Corporation has a controlling interest and VIEs (see Note 15) in which Lennar Corporation is deemed the primary beneficiary (the "Company"). The Company’s investments in both unconsolidated entities in which a significant, but less than controlling, interest is held and in VIEs in which the Company is not deemed to be the primary beneficiary are accounted for by the equity method. All intercompany transactions and balances have been eliminated in consolidation. | ||||||||||||||||||||||||||||||||||||
Use Of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. | ||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenues from sales of homes are recognized when the sales are closed and title passes to the new homeowner, the new homeowner’s initial and continuing investment is adequate to demonstrate a commitment to pay for the home, the new homeowner’s receivable is not subject to future subordination and the Company does not have a substantial continuing involvement with the new home. Revenues from sales of land are recognized when a significant down payment is received, the earnings process is complete, title passes and collectability of the receivable is reasonably assured. See Lennar Financial Services, Rialto and Lennar Multifamily within this Note for disclosure of other revenue recognition policies related to those segments.Title premiums on policies issued directly by the Company are recognized as revenue on the effective date of the title policies and escrow fees and loan origination revenues are recognized at the time the related real estate transactions are completed, usually upon the close of escrow. Revenues from title policies issued by independent agents are recognized as revenue when notice of issuance is received from the agent, which is generally when cash payment is received by the Company. Expected gains and losses from the sale of loans and their related servicing rights are included in the measurement of all written loan commitments that are accounted for at fair value through earnings at the time of commitment. Interest income on loans held-for-sale and loans held-for-investment is recognized as earned over the terms of the mortgage loans based on the contractual interest rates.The Lennar Multifamily segment provides management services with respect to the development, construction and property management of rental projects in joint ventures in which the Company has investments. As a result, the Lennar Multifamily segment earns and receives fees, which are generally based upon a stated percentage of development and construction costs and a percentage of gross rental collections. These fees are included in Lennar Multifamily revenue and are recorded over the period in which the services are performed, fees are determinable and collectability is reasonably assured. In addition, the Lennar Multifamily provides general contractor services for the construction of some of its rental projects and recognizes the revenue over the period in which the services are performed under the percentage of completion method.The Rialto segment provides services to a variety of legal entities and investment vehicles such as funds, joint ventures, co-invests, and other private equity structures to manage their respective investments. As a result, Rialto earns and receives management fees, underwriting fees and due diligence fees. These fees are included in Rialto revenues and are recorded over the period in which the services are performed, fees are determinable and collectability is reasonably assured. Rialto receives investment management fees from investment vehicles based on 1) a percentage of committed or called capital during the commitment period and called capital after the commitment period ends and 2) a percentage of invested capital less the portion of such invested capital utilized to acquire investments that have been sold (in whole or in part) or liquidated. Fees earned for underwriting and due diligence services are based on actual costs incurred. In certain situations, Rialto may earn additional fees when the return on assets managed exceeds contractually established thresholds. Such revenue is only booked when the contract terms are met, the contract is at, or near, completion and the amounts are known and collectability is reasonably assured. Since such revenue is recognized during the latter half of the life of the investment vehicle, after substantially all of the assets have been sold and investment gains and losses realized, the possibility of claw backs is limited. In addition, Rialto may also receive tax distributions in order to cover income tax obligations resulting from allocations of taxable income due to Rialto's carried interests in the funds. These distributions are not subject to clawbacks and therefore are recorded as revenue when received. | ||||||||||||||||||||||||||||||||||||
Advertising Costs | The Company expenses advertising costs as incurred. | ||||||||||||||||||||||||||||||||||||
Share-Based Payments | The Company has share-based awards outstanding under the 2007 Equity Incentive Plan and the 2016 Equity Incentive Plan (the "Plans"), each of which provides for the granting of stock options, stock appreciation rights, restricted common stock ("nonvested shares") and other share based awards to officers, associates and directors. The exercise prices of stock options may not be less than the market value of the common stock on the date of the grant. Exercises are permitted in installments determined when options are granted. Each stock option will expire on a date determined at the time of the grant, but not more than ten years after the date of the grant. The Company accounts for stock option awards and nonvested share awards granted under the Plans based on the estimated grant date fair value. | ||||||||||||||||||||||||||||||||||||
Cash And Cash Equivalents | The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Due to the short maturity period of cash equivalents, the carrying amounts of these instruments approximate their fair values. | ||||||||||||||||||||||||||||||||||||
Restricted Cash | Lennar Homebuilding restricted cash consists of customer deposits on home sales held in restricted accounts until title transfers to the homebuyer, as required by the state and local governments in which the homes were sold, as well as funds on deposit to secure and support performance obligations. Rialto restricted cash primarily consists of upfront deposits and application fees Rialto Mortgage Finance ("RMF") receives before originating loans and is recognized as income once the loan has been originated as well as cash held in escrow by the Company’s loan servicer provider on behalf of customers and lenders and is disbursed in accordance with agreements between the transacting parties. | ||||||||||||||||||||||||||||||||||||
Inventories | Finished homes and construction in progress are included within inventories. Inventories are stated at cost unless the inventory within a community is determined to be impaired, in which case the impaired inventory is written down to fair value. Inventory costs include land, land development and home construction costs, real estate taxes, deposits on land purchase contracts and interest related to development and construction. Construction overhead and selling expenses are expensed as incurred. Homes held-for-sale are classified as inventories until delivered. Land, land development, amenities and other costs are accumulated by specific area and allocated to homes within the respective areas. The Company reviews its inventory for indicators of impairment by evaluating each community during each reporting period. The inventory within each community is categorized as finished homes and construction in progress or land under development based on the development state of the community. There were 693 and 662 active communities, excluding unconsolidated entities, as of November 30, 2016 and 2015, respectively. If the undiscounted cash flows expected to be generated by a community are less than its carrying amount, an impairment charge is recorded to write down the carrying amount of such community to its estimated fair value. In conducting its review for indicators of impairment on a community level, the Company evaluates, among other things, the margins on homes that have been delivered, margins on homes under sales contracts in backlog, projected margins with regard to future home sales over the life of the community, projected margins with regard to future land sales and the estimated fair value of the land itself. The Company pays particular attention to communities in which inventory is moving at a slower than anticipated absorption pace and communities whose average sales price and/or margins are trending downward and are anticipated to continue to trend downward. From this review, the Company identifies communities in which to assess if the carrying values exceed their undiscounted projected cash flows. The Company estimates the fair value of its communities using a discounted cash flow model. The projected cash flows for each community are significantly impacted by estimates related to market supply and demand, product type by community, homesite sizes, sales pace, sales prices, sales incentives, construction costs, sales and marketing expenses, the local economy, competitive conditions, labor costs, costs of materials and other factors for that particular community. Every division evaluates the historical performance of each of its communities as well as current trends in the market and economy impacting the community and its surrounding areas. These trends are analyzed for each of the estimates listed above. Each of the homebuilding markets in which the Company operates is unique, as homebuilding has historically been a local business driven by local market conditions and demographics. Each of the Company’s homebuilding markets has specific supply and demand relationships reflective of local economic conditions. The Company’s projected cash flows are impacted by many assumptions. Some of the most critical assumptions in the Company’s cash flow model are projected absorption pace for home sales, sales prices and costs to build and deliver homes on a community by community basis. In order to arrive at the assumed absorption pace for home sales and the assumed sales prices included in the Company’s cash flow model, the Company analyzes its historical absorption pace and historical sales prices in the community and in other comparable communities in the geographical area. In addition, the Company considers internal and external market studies and places greater emphasis on more current metrics and trends, which generally include, but are not limited to, statistics and forecasts on population demographics and on sales prices in neighboring communities, unemployment rates and availability and sales prices of competing product in the geographical area where the community is located as well as the absorption pace realized in its most recent quarters and the sales prices included in the Company's current backlog for such communities. Generally, if the Company notices a variation from historical results over a span of two fiscal quarters, the Company considers such variation to be the establishment of a trend and adjusts its historical information accordingly in order to develop assumptions on the projected absorption pace and sales prices in the cash flow model for a community. In order to arrive at the Company’s assumed costs to build and deliver homes, the Company generally assumes a cost structure reflecting contracts currently in place with its vendors adjusted for any anticipated cost reduction initiatives or increases in cost structure. Those costs assumed are used in the cash flow model for the Company’s communities. Since the estimates and assumptions included in the Company’s cash flow models are based upon historical results and projected trends, they do not anticipate unexpected changes in market conditions or strategies that may lead the Company to incur additional impairment charges in the future. The determination of fair value requires discounting the estimated cash flows at a rate the Company believes a market participant would determine to be commensurate with the inherent risks associated with the assets and related estimated cash flow streams. The discount rate used in determining each asset’s fair value depends on the community’s projected life and development stage. The Company generally uses a discount rate of approximately 20%, subject to the perceived risks associated with the community’s cash flow streams relative to its inventory. The Company estimates the fair value of inventory evaluated for impairment based on market conditions and assumptions made by management at the time the inventory is evaluated, which may differ materially from actual results if market conditions or assumptions change. For example, changes in market conditions and other specific developments or changes in assumptions may cause the Company to re-evaluate its strategy regarding previously impaired inventory, as well as inventory not currently impaired but for which indicators of impairment may arise if market deterioration occurs, and certain other assets that could result in further valuation adjustments and/or additional write-offs of option deposits and pre-acquisition costs due to abandonment of those options contracts.Interest and real estate taxes attributable to land and homes are capitalized as inventory costs while they are being actively developed. Interest related to homebuilding and land, including interest costs relieved from inventories, is included in costs of homes sold and costs of land sold. Interest expense related to the Lennar Financial Services operations is included in its costs and expenses.
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Inventories, Land Under Option Contracts | The Company also has access to land inventory through option contracts, which generally enables the Company to defer acquiring portions of properties owned by third parties and unconsolidated entities until it has determined whether to exercise its option. A majority of the Company’s option contracts require a non-refundable cash deposit or irrevocable letter of credit based on a percentage of the purchase price of the land. The Company’s option contracts sometimes include price adjustment provisions, which adjust the purchase price of the land to its approximate fair value at the time of acquisition or are based on the fair value at the time of takedown. In determining whether to walk away from an option contract, the Company evaluates the option primarily based upon its expected cash flows from the property under option. If the Company intends to walk away from an option contract, it records a charge to earnings in the period such decision is made for the deposit amount and any related pre-acquisition costs associated with the option contract. Some option contracts contain a predetermined take-down schedule for the optioned land parcels. However, in almost all instances, the Company is not required to purchase land in accordance with those take-down schedules. In substantially all instances, the Company has the right and ability to not exercise its option and forfeit its deposit without further penalty, other than termination of the option and loss of any unapplied portion of its deposit and pre-acquisition costs. Therefore, in substantially all instances, the Company does not consider the take-down price to be a firm contractual obligation. When the Company does not intend to exercise an option, it writes off any unapplied deposit and pre-acquisition costs associated with the option contract.
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Lennar Homebuilding and Lennar Multifamily Investments in Unconsolidated Entities | The Company evaluates the long-lived assets in unconsolidated entities for indicators of impairment during each reporting period. If a valuation adjustment is recorded by an unconsolidated entity related to its assets, the Company generally uses a discount rate between 10% and 20%, subject to the perceived risks associated with the community’s cash flow streams relative to its inventory or operating assets. The Company’s proportionate share of a valuation adjustment is reflected in the Company's Lennar Homebuilding or Lennar Multifamily equity in earnings (loss) from unconsolidated entities with a corresponding decrease to its Lennar Homebuilding or Lennar Multifamily investment in unconsolidated entities. Additionally, the Company evaluates if a decrease in the value of an investment below its carrying value is other-than-temporary. This evaluation includes certain critical assumptions made by management: (1) projected future distributions from the unconsolidated entities, (2) discount rates applied to the future distributions and (3) various other factors, which include age of the venture, relationships with the other partners and banks, general economic market conditions, land status and liquidity needs of the unconsolidated entity. If the decline in the fair value of the investment is other-than-temporary, then these losses are included in Lennar Homebuilding other income, net or Lennar Multifamily costs and expenses. The Company tracks its share of cumulative earnings and distributions of its joint ventures ("JVs"). For purposes of classifying distributions received from JVs in the Company’s consolidated statements of cash flows, cumulative distributions are treated as returns on capital to the extent of cumulative earnings and included in the Company’s consolidated statements of cash flows as operating activities. Cumulative distributions in excess of the Company’s share of cumulative earnings are treated as returns of capital and included in the Company’s consolidated statements of cash flows as cash from investing activities.
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Consolidation Of Variable Interest Entities | In 2010, the Rialto segment acquired indirectly 40% managing member equity interests in two limited liability companies ("LLCs"), in partnership with the FDIC. The Company determined that each of the LLCs met the definition of a VIE and that the Company was the primary beneficiary. In accordance with ASC 810-10-65-2, Consolidations, ("ASC 810-10-65-2"), the Company identified the activities that most significantly impact the LLCs’ economic performance and determined that it has the power to direct those activities. The economic performance of the LLCs is most significantly impacted by the performance of the LLCs’ portfolios of assets, which consisted primarily of distressed residential and commercial mortgage loans. Thus, the activities that most significantly impact the LLCs’ economic performance are the servicing and disposition of mortgage loans and real estate obtained through foreclosure of loans, restructuring of loans, or other planned activities associated with the monetizing of loans. At November 30, 2016, these consolidated LLCs had total combined assets and liabilities of $213.8 million and $10.3 million, respectively. At November 30, 2015, these consolidated LLCs had total combined assets and liabilities of $355.2 million and $11.3 million, respectively. The FDIC does not have the unilateral power to terminate the Company’s role in managing the LLCs and servicing the loan portfolios. While the FDIC has the right to prevent certain types of transactions (i.e., bulk sales, selling assets with recourse back to the selling entity, selling assets with representations and warranties and financing the sales of assets without the FDIC’s approval), the FDIC does not have full voting or blocking rights over the LLCs’ activities, making their voting rights protective in nature, not substantive participating voting rights. Other than as described in the preceding sentence, which are not the primary activities of the LLCs, the Company can cause the LLCs to enter into both the disposition and restructuring of loans without any involvement of the FDIC. Additionally, the FDIC has no voting rights with regard to the operation/management of the operating properties that are acquired upon foreclosure of loans (e.g. REO) and no voting rights over the business plans of the LLCs. The FDIC can make suggestions regarding the business plans, but the Company can decide not to follow the FDIC’s suggestions and not to incorporate them in the business plans. Since the FDIC’s voting rights are protective in nature and not substantive participating voting rights, the Company has the power to direct the activities that most significantly impact the LLCs’ economic performance. In accordance with ASC 810-10-65-2, the Company determined that it had an obligation to absorb losses of the LLCs that could potentially be significant to the LLCs or the right to receive benefits from the LLCs that could potentially be significant to the LLCs based on the following factors:
The Company is aware that the FDIC, as the owner of 60% of the equity of each of the LLCs, may also have an obligation to absorb losses of the LLCs that could potentially be significant to the LLCs. However, in accordance with ASC 810-10-25-38A, only one enterprise, if any, is expected to be identified as the primary beneficiary of a VIE. Since both criteria for consolidation in ASC 810-10-65-2 are met, the Company consolidated the LLCs. Voting Interest Entities Rialto Real Estate Fund, LP ("Fund I"), Rialto Real Estate Fund II, LP ("Fund II"), Rialto Real Estate Fund III ("Fund III"), Rialto Mezzanine Partners Fund, LP ("Mezzanine Fund") and the Rialto Credit Partnership, LP ("RCP") are unconsolidated entities and are accounted for under the equity method of accounting. They were determined to have the attributes of an investment company in accordance with ASC Topic 946, Financial Services – Investment Companies, the attributes of which are different from the attributes that would cause a company to be an investment company for purposes of the Investment Company Act of 1940. As a result, Fund I, Fund II, Fund III, Mezzanine Fund, and the RCP's assets and liabilities are recorded at fair value with increases/decreases in fair value recorded in their respective statements of operations, the Company’s share of which will be recorded in the Rialto equity in earnings (loss) from unconsolidated entities financial statement line item. The Company determined that Fund I, Fund II, Fund III, Mezzanine Fund, and the RCP are not variable interest entities but rather voting interest entities due to the following factors:
The Company’s variable interest in VIEs may be in the form of (1) equity ownership, (2) contracts to purchase assets, (3) management and development agreements between the Company and a VIE, (4) loans provided by the Company to a VIE or other partner and/or (5) guarantees provided by members to banks and other third parties. The Company examines specific criteria and uses its judgment when determining if it is the primary beneficiary of a VIE. Factors considered in determining whether the Company is the primary beneficiary include risk and reward sharing, experience and financial condition of other partner(s), voting rights, involvement in day-to-day capital and operating decisions, representation on a VIE’s executive committee, existence of unilateral kick-out rights or voting rights, level of economic disproportionality, if any, between the Company and the other partner(s) and contracts to purchase assets from VIEs. The determination whether an entity is a VIE and, if so, whether the Company is the primary beneficiary may require it to exercise significant judgment. Generally, all major decision making in the Company’s joint ventures is shared among all partners. In particular, business plans and budgets are generally required to be unanimously approved by all partners. Usually, management and other fees earned by the Company are nominal and believed to be at market and there is no significant economic disproportionality between the Company and other partners. Generally, the Company purchases less than a majority of the JV’s assets and the purchase prices under its option contracts are believed to be at market. Generally, Lennar Homebuilding and Lennar Multifamily unconsolidated entities become VIEs and consolidate when the other partner(s) lack the intent and financial wherewithal to remain in the entity. As a result, the Company continues to fund operations and debt paydowns through partner loans or substituted capital contributions.
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Operating Properties And Equipment | Operating properties and equipment are recorded at cost and are included in other assets in the consolidated balance sheets. The assets are depreciated over their estimated useful lives using the straight-line method. At the time operating properties and equipment are disposed of, the asset and related accumulated depreciation are removed from the accounts and any resulting gain or loss is credited or charged to earnings. The estimated useful life for operating properties is 30 years, for furniture, fixtures and equipment is two to ten years and for leasehold improvements is five years or the life of the lease, whichever is shorter. Operating properties are reviewed for possible impairment if there are indicators that their carrying amounts are not recoverable. | ||||||||||||||||||||||||||||||||||||
Investment Securities | Investment securities are classified as available-for-sale unless they are classified as trading or held-to-maturity. Securities classified as trading are carried at fair value and unrealized holding gains and losses are recorded in earnings. Available-for-sale securities are recorded at fair value. Any unrealized holding gains or losses on available-for-sale securities are reported as accumulated other comprehensive gain or loss, which is a separate component of stockholders’ equity, net of tax, until realized. Securities classified as held-to-maturity are carried at amortized cost because they are purchased with the intent and ability to hold to maturity.At November 30, 2016 and 2015, the Lennar Financial Services segment had investment securities classified as held-to-maturity totaling $42.0 million and $40.2 million, respectively, which consist mainly of corporate debt obligations, U.S. government agency obligations, certificates of deposit and U.S. treasury securities that mature at various dates, mainly within five years. Also, at November 30, 2016 and 2015, the Lennar Financial Services segment had available-for-sale securities totaling $53.6 million and $42.8 million, respectively, which consist primarily of preferred stock and mutual funds. These investments available-for-sale are carried at fair value with changes recorded as a component of accumulated other comprehensive income (loss). | ||||||||||||||||||||||||||||||||||||
Income Taxes | The Company records income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and attributable to operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which the temporary differences are expected to be recovered or paid. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period when the changes are enacted. Interest related to unrecognized tax benefits is recognized in the financial statements as a component of income tax expense. A reduction of the carrying amounts of deferred tax assets by a valuation allowance is required if, based on the available evidence, it is more likely than not that such assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed each reporting period by the Company based on the consideration of all available positive and negative evidence using a "more-likely-than-not" standard with respect to whether deferred tax assets will be realized. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, actual earnings, forecasts of future profitability, the duration of statutory carryforward periods, the Company’s experience with loss carryforwards not expiring unused and tax planning alternatives. Based on the analysis of positive and negative evidence, the Company believed that there was enough positive evidence for the Company to conclude that it was more likely than not that the Company would realize the majority of its deferred tax assets.
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Product Warranty | Warranty and similar reserves for homes are established at an amount estimated to be adequate to cover potential costs for materials and labor with regard to warranty-type claims expected to be incurred subsequent to the delivery of a home. Reserves are determined based on historical data and trends with respect to similar product types and geographical areas. The Company regularly monitors the warranty reserve and makes adjustments to its pre-existing warranties in order to reflect changes in trends and historical data as information becomes available. Warranty reserves are included in Lennar Homebuilding other liabilities in the consolidated balance sheets. | ||||||||||||||||||||||||||||||||||||
Self-Insurance | Certain insurable risks such as construction defects, general liability, medical and workers’ compensation are self-insured by the Company up to certain limits. Undiscounted accruals for claims under the Company’s self-insurance program are based on claims filed and estimates for claims incurred but not yet reported. The Company’s self-insurance reserve as of November 30, 2016 and 2015 was $87.6 million and $96.5 million, respectively, of which $57.4 million and $65.0 million, respectively, was included in Lennar Financial Services’ other liabilities in the respective years. Amounts incurred in excess of the Company's self-insurance occurrence or aggregate retention limits are covered by insurance up to the Company's purchased coverage levels. The Company's insurance policies are maintained with highly-rated underwriters for whom the Company believes counterparty default risk is not significant. | ||||||||||||||||||||||||||||||||||||
Earnings Per Share | Basic earnings per share is computed by dividing net earnings attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in earnings of the Company.All outstanding nonvested shares that contain non-forfeitable rights to dividends or dividend equivalents that participate in undistributed earnings with common stock are considered participating securities and are included in computing earnings per share pursuant to the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating securities according to dividends or dividend equivalents and participation rights in undistributed earnings. The Company’s restricted common stock ("nonvested shares") are considered participating securities. | ||||||||||||||||||||||||||||||||||||
Loans Held-for-Sale | The originated mortgage loans are classified as loans held-for-sale and are recorded at fair value. The Company elected the fair value option for RMF's loans held-for-sale in accordance with Accounting Standards Codification ("ASC") 825, Financial Instruments, which permits entities to measure various financial instruments and certain other items at fair value on a contract-by-contract basis. Management believes that carrying loans held-for-sale at fair value improves financial reporting by mitigating volatility in reported earnings caused by measuring the fair value of the loans and the derivative instruments, which are also carried at fair value, used to economically hedge them without having to apply complex hedge accounting provisions. Changes in fair values of the loans are reflected in Rialto revenues in the accompanying consolidated statements of operations. Interest income on these loans is calculated based on the interest rate of the loan and is recorded in Rialto revenues in the accompanying consolidated statements of operations. Substantially all of the mortgage loans originated are sold within a short period of time in a securitization on a servicing released, non-recourse basis; although, the Company remains liable for certain limited industry-standard representations and warranties related to loan sales. The Company recognizes revenue on the sale of loans into securitization trusts when control of the loans has been relinquished. Loans held-for-sale by the Lennar Financial Services segment, including the rights to service the mortgage loans, are carried at fair value and changes in fair value are reflected in earnings. Premiums and discounts recorded on these loans are presented as an adjustment to the carrying amount of the loans and are not amortized. Management believes carrying loans held-for-sale at fair value improves financial reporting by mitigating volatility in reported earnings caused by measuring the fair value of the loans and the derivative instruments used to economically hedge them without having to apply complex hedge accounting provisions. In addition, the Lennar Financial Services segment recognizes the fair value of its rights to service a mortgage loan as revenue upon entering into an interest rate lock loan commitment with a borrower. The fair value of these servicing rights is included in Lennar Financial Services' other assets as of November 30, 2016 and 2015. Fair value of the servicing rights is determined based on values in the Company’s servicing sales contracts. | ||||||||||||||||||||||||||||||||||||
Provision for Losses | The Company establishes reserves for possible losses associated with mortgage loans previously originated and sold to investors based upon, among other things, an analysis of repurchase requests received, an estimate of potential repurchase claims not yet received and actual past repurchases and losses through the disposition of affected loans, as well as previous settlements. Loan origination liabilities are included in Lennar Financial Services’ liabilities in the consolidated balance sheets. | ||||||||||||||||||||||||||||||||||||
Loans Held-for-Investment, Net | Loans for which the Company has the positive intent and ability to hold to maturity consist of mortgage loans carried at the principal amount outstanding, net of unamortized discounts and allowance for loan losses. Discounts are amortized over the estimated lives of the loans using the interest method.The Lennar Financial Services segment also provides an allowance for loan losses. The provision recorded and the adequacy of the related allowance is determined by management’s continuing evaluation of the loan portfolio in light of past loan loss experience, credit worthiness and nature of underlying collateral, present economic conditions and other factors considered relevant by the Company’s management. Anticipated changes in economic factors, which may influence the level of the allowance, are considered in the evaluation by the Company’s management when the likelihood of the changes can be reasonably determined. While the Company’s management uses the best information available to make such evaluations, future adjustments to the allowance may be necessary as a result of future economic and other conditions that may be beyond management’s control. | ||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | The Lennar Financial Services segment, in the normal course of business, uses derivative financial instruments to reduce its exposure to fluctuations in mortgage-related interest rates. The segment uses mortgage-backed securities ("MBS") forward commitments, option contracts, future contracts and investor commitments to protect the value of fixed rate-locked loan commitments and loans held-for-sale from fluctuations in mortgage-related interest rates. These derivative financial instruments are carried at fair value with the changes in fair value included in Lennar Financial Services revenues.The Rialto segment, in the normal course of business, uses derivative financial instruments on loans held-for-sale in order to minimize its exposure to fluctuations in mortgage-related interest rates as well as lessen its credit risk. The segment hedges interest rate exposure by entering into interest rate swaps and swap futures. These derivative financial instruments are carried at fair value with derivative instruments in gain positions recorded in other assets while derivative instruments in loss positions are recorded in other liabilities. | ||||||||||||||||||||||||||||||||||||
Real Estate Owned | Real estate owned ("REO") represents real estate that the Rialto segment has taken control in partial or full satisfaction of loans receivable. At the time of acquisition of a property through foreclosure of a loan, REO is recorded at fair value less estimated costs to sell if classified as held-for-sale or at fair value if classified as held-and-used, which becomes the property’s new basis. The fair values of these assets are determined in part by placing reliance on third-party appraisals of the properties and/or internally prepared analyses of recent offers or prices on comparable properties in the proximate vicinity. The third-party appraisals and internally developed analyses are significantly impacted by the local market economy, market supply and demand, competitive conditions and prices on comparable properties, adjusted for anticipated date of sale, location, property size, and other factors. Each REO is unique and is analyzed in the context of the particular market where the property is located. In order to establish the significant assumptions for a particular REO, the Company analyzes historical trends, including trends achieved by the Company's local homebuilding operations, if applicable, and current trends in the market and economy impacting the REO. Using available trend information, the Company then calculates its best estimate of fair value, which can include projected cash flows discounted at a rate the Company believes a market participant would determine to be commensurate with the inherent risks associated with the assets and related estimated cash flow streams. These methods use unobservable inputs to develop fair value for the Company’s REO. Due to the volume and variance of unobservable inputs, resulting from the uniqueness of each of the Company's REO, the Company does not use a standard range of unobservable inputs with respect to its evaluation of REO. However, for operating properties included within REO, the Company may also use estimated cash flows multiplied by a capitalization rate to determine the fair value of the property. Generally, the capitalization rates used to estimate fair value ranged from 8% to 12% and varied based on the location of the asset, asset type and occupancy rates for the operating properties. Changes in economic factors, consumer demand and market conditions, among other things, could materially impact estimates used in the third-party appraisals and/or internally prepared analyses of recent offers or prices on comparable properties. Thus, estimates can differ significantly from the amounts ultimately realized by the Rialto segment from disposition of these assets. The amount by which the recorded investment in the loan is less than the REO’s fair value (net of estimated cost to sell if held-for-sale), is recorded as an unrealized gain upon foreclosure in the Company’s consolidated statements of operations. The amount by which the recorded investment in the loan is greater than the REO’s fair value (net of estimated cost to sell if held-for-sale) is recorded as a provision for loan losses in the Company’s consolidated statements of operations. Additionally, REO includes real estate which Rialto has purchased directly from financial institutions. These REOs are recorded at cost or allocated cost if purchased in a bulk transaction. Subsequent to obtaining REO via foreclosure or directly from a financial institution, management periodically performs valuations using the methodologies described above such that the real estate is carried at the lower of its carrying value or current fair value, less estimated costs to sell if classified as held-for-sale. Held-and-used assets are tested for recoverability whenever changes in circumstances indicate that the carrying value may not be recoverable, and impairment losses are recorded for any amount by which the carrying value exceeds its fair value. Any subsequent impairment losses, operating expenses or income, and gains and losses on disposition of such properties are also recognized in Rialto other income (expense), net. REO assets classified as held-and-used are depreciated using a useful life of forty years for commercial properties and twenty seven and a half years for residential properties. REO assets classified as held-for-sale are not depreciated. Occasionally an asset will require certain improvements to yield a higher return. In accordance with ASC 970-340-25, Real Estate, construction costs incurred prior to acquisition or during development of the asset may be capitalized.
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New Accounting Pronouncements | In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, Revenue from Contracts with Customers, ("ASU 2014-09"). ASU 2014-09 provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASU 2014-09 will require an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update creates a five-step model that requires entities to exercise judgment when considering the terms of the contract(s) which include (i) identifying the contract(s) with the customer, (ii) identifying the separate performance obligations in the contract, (iii) determining the transaction price, (iv) allocating the transaction price to the separate performance obligations, and (v) recognizing revenue when each performance obligation is satisfied. In July 2015, the FASB deferred the effective date by one year and permitted early adoption of the standard, but not before the original effective date; therefore, ASU 2014-09 will be effective for the Company’s fiscal year beginning December 1, 2018 and subsequent interim periods. The Company has the option to apply the provisions of ASU 2014-09 either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of applying this ASU recognized at the date of initial application. The Company is currently evaluating the method and impact the adoption of ASU 2014-09 will have on the Company's consolidated financial statements. Subsequent to the issuance of ASU 2014-09, the FASB has issued several ASUs such as ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, and ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients among others. These ASUs do not change the core principle of the guidance stated in ASU 2014-09, instead these amendments are intended to clarify and improve operability of certain topics included within the revenue standard. These ASUs will have the same effective date and transition requirements as ASU 2014-09. The Company is currently evaluating the method and impact the adoption of these ASUs and ASU 2014-09 will have on the Company's consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis ("ASU 2015-02"). ASU 2015-02 amends the consolidation requirements and significantly changes the consolidation analysis required. ASU 2015-02 requires management to reevaluate all legal entities under a revised consolidation model specifically (i) modify the evaluation of whether limited partnership and similar legal entities are VIEs, (ii) eliminate the presumption that a general partner should consolidate a limited partnership, (iii) affect the consolidation analysis of reporting entities that are involved with VIEs particularly those that have fee arrangements and related party relationships, and (iv) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Act of 1940 for registered money market funds. ASU 2015-02 will be effective for the Company’s fiscal year beginning December 1, 2016 and subsequent interim periods. The adoption of ASU 2015-02 is not expected to have a material effect on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customers' Accounting for Fees Paid in a Cloud Computing Arrangement ("ASU 2015-05"). ASU 2015-05 provides guidance for a customer to determine whether a cloud computing arrangement contains a software license or should be accounted for as a service contract. ASU 2015-05 will be effective for the Company’s fiscal year beginning December 1, 2016 and subsequent interim periods. As permitted, the Company elected early adoption. The adoption of ASU 2015-05 did not have a material effect on the Company’s consolidated financial statements. In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments ("ASU 2015-16"). ASU 2015-16 requires an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. ASU 2015-16 will be effective for the Company’s fiscal year beginning December 1, 2017 and subsequent interim periods. The adoption of ASU 2015-16 is not expected to have a material effect on the Company’s consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"). ASU 2016-01 modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Under the new guidance, entities will have to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicality exception. A practicality exception will apply to those equity investments that do not have a readily determinable fair value and do not qualify for the practical expedient to estimate fair value under ASC 820, Fair Value Measurements, and as such these investments may be measured at cost. ASU 2016-01 will be effective for the Company’s fiscal year beginning December 1, 2018 and subsequent interim periods. The adoption of ASU 2016-01 is not expected to have a material effect on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-02, Leases ("ASU 2016-02"), which provides guidance for accounting for leases. ASU 2016-02 requires lessees to classify leases as either finance or operating leases and to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of the lease classification. The lease classification will determine whether the lease expense is recognized based on an effective interest rate method or on a straight line basis over the term of the lease. Accounting for lessors remains largely unchanged from current GAAP. ASU 2016-02 will be effective for the Company’s fiscal year beginning December 1, 2019 and subsequent interim periods. The Company is currently evaluating the impact the adoption of ASU 2016-02 will have on the Company's consolidated financial statements. In March 2016, the FASB issued ASU 2016-07, Investments- Equity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting ("ASU 2016-07"). ASU 2016-07 eliminates the requirement to apply the equity method of accounting retrospectively when a reporting entity obtains significant influence over a previously held investment. ASU 2016-07 will be effective for the Company’s fiscal year beginning December 1, 2017 and subsequent interim periods. The adoption of ASU 2016-07 is not expected to have a material effect on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). ASU 2016-09 simplifies several aspects related to the accounting for share-based payment transactions, including the accounting for income taxes, statutory tax withholding requirements and classification on the statement of cash flows. ASU 2016-09 will be effective for the Company’s fiscal year beginning December 1, 2017 and subsequent interim periods. The Company is currently evaluating the potential impact of ASU 2016-09 but the Company does not expect it to have a material impact on the Company's consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"). ASU 2016-15 reduces the existing diversity in practice in financial reporting across all industries by clarifying certain existing principles in ASC 230, Statement of Cash Flows, ("ASC 230") including providing additional guidance on how and what an entity should consider in determining the classification of certain cash flows. In addition, in November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash ("ASU 2016-18"). ASU 2016-18 clarifies certain existing principles in ASC 230, including providing additional guidance related to transfers between cash and restricted cash and how entities present, in their statement of cash flows, the cash receipts and cash payments that directly affect the restricted cash accounts. These ASUs will be effective for the Company’s fiscal year beginning December 1, 2018 and subsequent interim periods. Early adoption is permitted. The adoption of ASU 2016-15 and ASU 2016-18 will modify the Company's current disclosures and reclassifications within the consolidated statement of cash flows but they are not expected to have a material effect on the Company’s consolidated financial statements. Reclassifications/Revisions As a result of the Company's change in reportable segments during fiscal year 2016, the Company restated certain prior year amounts in the consolidated financial statements to conform with the 2016 presentation (see Note 2). These reclassifications had no impact on the Company's consolidated financial statements. |
Summary Of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2015 and 2014:
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Schedule Of Interest Expense | Interest expense was included in costs of homes sold, costs of land sold and other interest expense as follows:
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Schedule Of Warranty Reserve | The activity in the Company’s warranty reserve was as follows:
(1) The adjustments to pre-existing warranties from changes in estimates during the years ended November 30, 2016 and 2015 primarily related to specific claims related to certain of our homebuilding communities and other adjustments.
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Loan Origination Liabilities | The activity in the Company’s loan origination liabilities was as follows:
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Operating And Reporting Segments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information | Financial information relating to the Company’s operations was as follows:
s, partially offset by $4.7 million of equity in earnings as a result of third-party land sales by one unconsolidated entity. For details refer to Note 4. The assets and liabilities related to the Lennar Financial Services segment were as follows:
(5) As of November 30, 2016 and 2015, other liabilities included $57.4 million and $65.0 million, respectively, of certain of the Company’s self-insurance reserves related to construction defects, general liability and workers’ compensation. The assets and liabilities related to the Rialto segment were as follows:
(2) Loans held-for-sale related to unsold loans originated by RMF carried at fair value.The assets and liabilities related to the Lennar Multifamily segment were as follows:
(1) Receivables primarily related to general contractor services and management fee income receivables as of November 30, 2016 and 2015.
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Lennar Homebuilding Receivables (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Lennar Homebuilding Receivables |
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Lennar Homebuilding Investments In Unconsolidated Entities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Unconsolidated Entities | Summarized condensed financial information on a combined 100% basis related to Lennar Homebuilding’s unconsolidated entities that are accounted for by the equity method was as follows:
(2) As of November 30, 2016, the Company's maximum recourse exposure was primarily related to the Company providing a repayment guarantee on an unconsolidated entity's debt.The following table reflects Rialto's investments in funds that invest in and manage real estate related assets and other investments:
Rialto's share of earnings (loss) from unconsolidated entities was as follows:
(1) Equity in loss from Fund III for the year ended November 30, 2015 related to formation costs incurred in November 2015.Summarized condensed financial information on a combined 100% basis related to Rialto’s investments in unconsolidated entities that are accounted for by the equity method was as follows:
(1) Other income, net included realized and unrealized gains (losses) on investments.Summarized condensed financial information on a combined 100% basis related to Lennar Multifamily's investments in unconsolidated entities that are accounted for by the equity method was as follows:
(1) During the year ended November 30, 2016, Lennar Multifamily equity in earnings from unconsolidated entities included the segment's $91.0 million share of gains as a result of the sale of seven operating properties by its unconsolidated entities. During the years ended November 30, 2015 and 2014, Lennar Multifamily equity in earnings from unconsolidated entities included the segment's $22.2 million and $14.7 million share of gains, respectively, as a result of the sale of two operating properties each year by its unconsolidated entities.The Company’s recorded investments in unconsolidated entities were as follows:
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Lennar Homebuilding Operating Properties And Equipment (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Operating Properties And Equipment | Operating properties and equipment are included in Lennar Homebuilding other assets in the consolidated balance sheets and were as follows:
(1) Operating properties primarily include rental operations and commercial properties. During the year ended November 30, 2015, the Company sold operating properties with a basis of $132.7 million.
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Lennar Homebuilding Senior Notes And Other Debts Payable (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Senior Notes And Other Debts Payable | The terms of each of the Company's senior notes outstanding at November 30, 2016 were as follows:
(5) The Company issued $350 million aggregate principal amount at a price of 100%, $175 million aggregate principal amount at a price of 98.073% and $50 million aggregate principal amount at a price of 98.250%.
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Schedule Of Maturities Of Senior Notes And Other Debts Payable | The minimum aggregate principal maturities of senior notes and other debts payable during the five years subsequent to November 30, 2016 and thereafter are as follows:
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Lennar Financial Services Segment (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Assets And Liabilities | Financial information relating to the Company’s operations was as follows:
s, partially offset by $4.7 million of equity in earnings as a result of third-party land sales by one unconsolidated entity. For details refer to Note 4. The assets and liabilities related to the Lennar Financial Services segment were as follows:
(5) As of November 30, 2016 and 2015, other liabilities included $57.4 million and $65.0 million, respectively, of certain of the Company’s self-insurance reserves related to construction defects, general liability and workers’ compensation. The assets and liabilities related to the Rialto segment were as follows:
(2) Loans held-for-sale related to unsold loans originated by RMF carried at fair value.The assets and liabilities related to the Lennar Multifamily segment were as follows:
(1) Receivables primarily related to general contractor services and management fee income receivables as of November 30, 2016 and 2015.
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Schedule of Line of Credit Facilities | At November 30, 2016, the Lennar Financial Services segment warehouse facilities were as follows:
(3) In accordance with the amended warehouse repurchase facility agreement, the maximum aggregate commitment will be decreased to $400 million in the first quarter of fiscal 2017 and will be increased to $600 million in the second quarter of fiscal 2017.At November 30, 2016, Rialto warehouse facilities were as follows:
(3) Rialto uses this warehouse repurchase facility to finance the origination of floating rate accrual loans which are reported as accrual loans within loans receivable, net. Borrowings under this facility were $43.3 million and $36.3 million as of November 30, 2016 and 2015, respectively.
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Rialto Segment (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Assets And Liabilities | Financial information relating to the Company’s operations was as follows:
s, partially offset by $4.7 million of equity in earnings as a result of third-party land sales by one unconsolidated entity. For details refer to Note 4. The assets and liabilities related to the Lennar Financial Services segment were as follows:
(5) As of November 30, 2016 and 2015, other liabilities included $57.4 million and $65.0 million, respectively, of certain of the Company’s self-insurance reserves related to construction defects, general liability and workers’ compensation. The assets and liabilities related to the Rialto segment were as follows:
(2) Loans held-for-sale related to unsold loans originated by RMF carried at fair value.The assets and liabilities related to the Lennar Multifamily segment were as follows:
(1) Receivables primarily related to general contractor services and management fee income receivables as of November 30, 2016 and 2015.
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Schedule of Other Income and Expense, Net | The following is a detail of Rialto other income (expense), net:
(1) Rental and other income for the year ended November 30, 2016, included a $16.0 million write-off of uncollectible receivables related to a hospital, which was acquired through the resolution of one of Rialto's loans from a 2010 portfolio. The hospital is managed by a third-party management company.
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Schedule of Loans Receivable, Net |
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Schedule of Nonaccrual Loans | The following tables represent nonaccrual loans in the FDIC Portfolios and Bank Portfolios accounted for under ASC 310-10 aggregated by collateral type: November 30, 2016
November 30, 2015
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Allowance Rollforward Related to Nonaccrual Loans | If the recorded investment in the nonaccrual loan exceeds its fair value, an impairment is recognized through an allowance for loan losses. The activity in the Company's allowance rollforward related to nonaccrual loans was as follows:
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Schedule of Activity in REO | The following tables present the activity in REO:
(1) During the years ended November 30, 2016 and 2015, the Rialto segment transferred certain properties to/from REO held-and-used, net to REO held-for-sale as a result of changes made in the disposition strategy of the real estate assets.
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Schedule of Line of Credit Facilities | At November 30, 2016, the Lennar Financial Services segment warehouse facilities were as follows:
(3) In accordance with the amended warehouse repurchase facility agreement, the maximum aggregate commitment will be decreased to $400 million in the first quarter of fiscal 2017 and will be increased to $600 million in the second quarter of fiscal 2017.At November 30, 2016, Rialto warehouse facilities were as follows:
(3) Rialto uses this warehouse repurchase facility to finance the origination of floating rate accrual loans which are reported as accrual loans within loans receivable, net. Borrowings under this facility were $43.3 million and $36.3 million as of November 30, 2016 and 2015, respectively.
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Schedule of Unconsolidated Entities | Summarized condensed financial information on a combined 100% basis related to Lennar Homebuilding’s unconsolidated entities that are accounted for by the equity method was as follows:
(2) As of November 30, 2016, the Company's maximum recourse exposure was primarily related to the Company providing a repayment guarantee on an unconsolidated entity's debt.The following table reflects Rialto's investments in funds that invest in and manage real estate related assets and other investments:
Rialto's share of earnings (loss) from unconsolidated entities was as follows:
(1) Equity in loss from Fund III for the year ended November 30, 2015 related to formation costs incurred in November 2015.Summarized condensed financial information on a combined 100% basis related to Rialto’s investments in unconsolidated entities that are accounted for by the equity method was as follows:
(1) Other income, net included realized and unrealized gains (losses) on investments.Summarized condensed financial information on a combined 100% basis related to Lennar Multifamily's investments in unconsolidated entities that are accounted for by the equity method was as follows:
(1) During the year ended November 30, 2016, Lennar Multifamily equity in earnings from unconsolidated entities included the segment's $91.0 million share of gains as a result of the sale of seven operating properties by its unconsolidated entities. During the years ended November 30, 2015 and 2014, Lennar Multifamily equity in earnings from unconsolidated entities included the segment's $22.2 million and $14.7 million share of gains, respectively, as a result of the sale of two operating properties each year by its unconsolidated entities.The Company’s recorded investments in unconsolidated entities were as follows:
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Lennar Multifamily Segment (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Assets And Liabilities | Financial information relating to the Company’s operations was as follows:
s, partially offset by $4.7 million of equity in earnings as a result of third-party land sales by one unconsolidated entity. For details refer to Note 4. The assets and liabilities related to the Lennar Financial Services segment were as follows:
(5) As of November 30, 2016 and 2015, other liabilities included $57.4 million and $65.0 million, respectively, of certain of the Company’s self-insurance reserves related to construction defects, general liability and workers’ compensation. The assets and liabilities related to the Rialto segment were as follows:
(2) Loans held-for-sale related to unsold loans originated by RMF carried at fair value.The assets and liabilities related to the Lennar Multifamily segment were as follows:
(1) Receivables primarily related to general contractor services and management fee income receivables as of November 30, 2016 and 2015.
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Schedule of Unconsolidated Entities | Summarized condensed financial information on a combined 100% basis related to Lennar Homebuilding’s unconsolidated entities that are accounted for by the equity method was as follows:
(2) As of November 30, 2016, the Company's maximum recourse exposure was primarily related to the Company providing a repayment guarantee on an unconsolidated entity's debt.The following table reflects Rialto's investments in funds that invest in and manage real estate related assets and other investments:
Rialto's share of earnings (loss) from unconsolidated entities was as follows:
(1) Equity in loss from Fund III for the year ended November 30, 2015 related to formation costs incurred in November 2015.Summarized condensed financial information on a combined 100% basis related to Rialto’s investments in unconsolidated entities that are accounted for by the equity method was as follows:
(1) Other income, net included realized and unrealized gains (losses) on investments.Summarized condensed financial information on a combined 100% basis related to Lennar Multifamily's investments in unconsolidated entities that are accounted for by the equity method was as follows:
(1) During the year ended November 30, 2016, Lennar Multifamily equity in earnings from unconsolidated entities included the segment's $91.0 million share of gains as a result of the sale of seven operating properties by its unconsolidated entities. During the years ended November 30, 2015 and 2014, Lennar Multifamily equity in earnings from unconsolidated entities included the segment's $22.2 million and $14.7 million share of gains, respectively, as a result of the sale of two operating properties each year by its unconsolidated entities.The Company’s recorded investments in unconsolidated entities were as follows:
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Income Taxes (Tables) |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Benefit (Provision) for Income Taxes | The benefit (provision) for income taxes consisted of the following:
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Reconciliation Of Statutory Rate And Effective Tax Rate | A reconciliation of the statutory rate and the effective tax rate was as follows:
(1) During the year ended November 30, 2015, the Company recorded a benefit for additional state net operating loss carryforwards as a result of the conclusion of a state tax examination.
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Schedule of Deferred Income Taxes Assets And Liabilities | The tax effects of significant temporary differences that give rise to the net deferred tax assets were as follows:
(1) Net deferred tax assets and net deferred tax liabilities detailed above are included within other assets and other liabilities in the respective segments.
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Summary Of Changes In Gross Unrecognized Tax Benefits | The following table summarizes the changes in gross unrecognized tax benefits:
(2) Decreased the Company's effective tax rate for the year November 30, 2014 from 35.13% to 34.80%.The following summarizes the changes in interest and penalties accrued with respect to gross unrecognized tax benefits:
(1) The Company's accrual for interest and penalties was reduced during the year ended November 30, 2016 primarily due to a settlement with the IRS.
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Earnings Per Share (Tables) |
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Nov. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Basic and Diluted Earnings Per Share | Basic and diluted earnings per share were calculated as follows:
(1) The amounts presented above relate to Rialto's Carried Interest Incentive Plan adopted in June 2015 (see Note 8) and represent the difference between the advanced tax distributions received by Rialto's subsidiary and the amount Lennar, as the parent company, is assumed to own.
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Share-Based Payments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Compensation Expense Related to the Company's Share-based Awards | Compensation expense related to the Company’s share-based awards was as follows:
(1) Stock options expense relates to stock option awards granted to Lennar's non-employee directors for the years ended November 30, 2015 and 2014. The fair value of these stock option awards was estimated on the date of grant using a Black-Scholes option-pricing model.
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Schedule of Nonvested Shares Activity | A summary of the Company’s nonvested shares activity for the year ended November 30, 2016 was as follows:
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Financial Instruments and Fair Value Disclosure (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2016 and 2015, 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.
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Fair Value Measured on a Recurring Basis | The Company’s financial instruments measured at fair value on a recurring basis are summarized below:
(4) The aggregate fair value of Lennar Financial Services loans held-for-sale of $939.4 million at November 30, 2016 exceeds their aggregate principal balance of $931.0 million by $8.4 million. The aggregate fair value of Lennar Financial Services loans held-for-sale of $843.3 million at November 30, 2015 exceeds their aggregate principal balance of $815.0 million by $28.2 million.
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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:
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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:
(1) Changes in fair value for Rialto loans held-for-sale and Lennar Financial Services mortgage servicing rights are included in Rialto's and Lennar Financial Services' revenues, respectively.
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Schedule of Fair Value Measurements, Nonrecurring | The assets measured at fair value on a nonrecurring basis are summarized below:
(4) REO held-and-used, net, assets are initially recorded at fair value at the time of acquisition through, or in lieu of, loan foreclosure. 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. In addition, management periodically performs valuations of its REO held-and-used, net. The gains (losses) upon acquisition of REO held-and-used, net and impairments were included in Rialto other income (expense), net, in the Company’s consolidated statement of operations for the years ended November 30, 2016, 2015 and 2014.
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Consolidation Of Variable Interest Entities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Unconsolidated Entities | Summarized condensed financial information on a combined 100% basis related to Lennar Homebuilding’s unconsolidated entities that are accounted for by the equity method was as follows:
(2) As of November 30, 2016, the Company's maximum recourse exposure was primarily related to the Company providing a repayment guarantee on an unconsolidated entity's debt.The following table reflects Rialto's investments in funds that invest in and manage real estate related assets and other investments:
Rialto's share of earnings (loss) from unconsolidated entities was as follows:
(1) Equity in loss from Fund III for the year ended November 30, 2015 related to formation costs incurred in November 2015.Summarized condensed financial information on a combined 100% basis related to Rialto’s investments in unconsolidated entities that are accounted for by the equity method was as follows:
(1) Other income, net included realized and unrealized gains (losses) on investments.Summarized condensed financial information on a combined 100% basis related to Lennar Multifamily's investments in unconsolidated entities that are accounted for by the equity method was as follows:
(1) During the year ended November 30, 2016, Lennar Multifamily equity in earnings from unconsolidated entities included the segment's $91.0 million share of gains as a result of the sale of seven operating properties by its unconsolidated entities. During the years ended November 30, 2015 and 2014, Lennar Multifamily equity in earnings from unconsolidated entities included the segment's $22.2 million and $14.7 million share of gains, respectively, as a result of the sale of two operating properties each year by its unconsolidated entities.The Company’s recorded investments in unconsolidated entities were as follows:
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Schedule of Estimated Maximum Exposure To Loss | At November 30, 2016 and 2015, the Company’s recorded investments in VIEs that are unconsolidated and its estimated maximum exposure to loss were as follows:
(3) As of November 30, 2016 and 2015, the remaining equity commitment of $288.2 million and $378.3 million, respectively, to fund the Venture for future expenditures related to the construction and development of its projects was included in Lennar's maximum exposure to loss. In addition, at November 30, 2016 and 2015, the maximum exposure to loss of Lennar Multifamily's investments in unconsolidated VIEs was limited to its investments in the unconsolidated VIEs, except with regard to $19.7 million and $30.0 million, respectively, of letters of credit outstanding for certain of the unconsolidated VIEs that could be drawn upon in the event of default under their debt agreements.
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Commitments And Contingent Liabilities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||
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Nov. 30, 2016 | |||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule Of Operating Leases | The Company has entered into agreements to lease certain office facilities and equipment under operating leases. Future minimum payments under the noncancellable leases in effect at November 30, 2016 were as follows:
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Supplemental Financial Information Supplemental Financial Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidating Balance Sheet | Supplemental information for the subsidiaries that were guarantor subsidiaries at November 30, 2016 was as follows:
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Consolidating Statement of Operations and Comprehensive Income (Loss) |
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Consolidating Statement of Cash Flows |
|
Quarterly Data (unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Quarterly Financial Information |
|
Summary of Significant Accounting Policies (Narrative) (Details) |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2016
USD ($)
communities
homes
|
Nov. 30, 2015
USD ($)
communities
homes
|
Nov. 30, 2016
USD ($)
communities
|
Nov. 30, 2015
USD ($)
communities
community
|
Nov. 30, 2014
USD ($)
|
Dec. 31, 2010
business
|
||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Advertising costs | $ 40,900,000 | $ 47,900,000 | $ 45,200,000 | ||||||||||||
Cash held in escrow | $ 460,500,000 | $ 414,900,000 | $ 460,500,000 | $ 414,900,000 | |||||||||||
Number of active communities | communities | 693 | 662 | 693 | 662 | |||||||||||
Number of communities with potential indicators of impairment | communities | 11 | 13 | |||||||||||||
Number of homesites with potential indicators of impairment | homes | 663 | 931 | |||||||||||||
Carrying value of homesites with potential indicators of impairment | $ 180,900,000 | $ 121,700,000 | $ 180,900,000 | $ 121,700,000 | |||||||||||
Valuation adjustments for homesites | $ 8,100,000 | 0 | |||||||||||||
Number of homesites impaired | homes | 209 | ||||||||||||||
Number of communities impaired | community | 5 | ||||||||||||||
Trading securities | 0 | $ 0 | 0 | $ 0 | |||||||||||
Deferred tax assets, valuation allowance | 5,773,000 | 5,945,000 | 5,773,000 | 5,945,000 | |||||||||||
Self-insurance reserve | 87,600,000 | 96,500,000 | 87,600,000 | 96,500,000 | |||||||||||
Assets | 15,361,781,000 | [1] | 14,419,509,000 | [1] | 15,361,781,000 | [1] | 14,419,509,000 | [1] | 12,923,151,000 | ||||||
Liabilities | [2] | $ 8,150,214,000 | 8,469,437,000 | $ 8,150,214,000 | 8,469,437,000 | ||||||||||
FDIC Portfolio | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Servicing fee, percentage | 0.50% | 0.50% | |||||||||||||
Obligations under servicing agreement | $ 10,000,000 | $ 10,000,000 | |||||||||||||
Ownership percentage, noncontrolling interest | 60.00% | 60.00% | |||||||||||||
Operating properties | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Estimated useful life | 30 years | ||||||||||||||
Leasehold improvements | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Estimated useful life | 5 years | ||||||||||||||
Lennar Financial Services | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Held-to-maturity securities | $ 41,991,000 | 40,174,000 | $ 41,991,000 | 40,174,000 | |||||||||||
Held-to-maturity securities, term | 5 years | ||||||||||||||
Available-for-sale securities | 53,570,000 | 42,827,000 | $ 53,570,000 | 42,827,000 | |||||||||||
Self-insurance reserve | 57,400,000 | 65,000,000.0 | 57,400,000 | 65,000,000.0 | |||||||||||
Assets | [1] | 1,754,672,000 | 1,425,837,000 | 1,754,672,000 | 1,425,837,000 | ||||||||||
Liabilities | [2] | 1,318,283,000 | 1,083,978,000 | 1,318,283,000 | 1,083,978,000 | ||||||||||
Rialto | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Held-to-maturity securities | 71,260,000 | 25,625,000 | 71,260,000 | 25,625,000 | |||||||||||
Assets | [1] | 1,276,210,000 | 1,505,500,000 | 1,276,210,000 | 1,505,500,000 | ||||||||||
Liabilities | [2] | 707,980,000 | 866,224,000 | 707,980,000 | 866,224,000 | ||||||||||
Rialto | FDIC Portfolio | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Ownership percentage | 40.00% | ||||||||||||||
Number of equity interests limited liability companies acquired | business | 2 | ||||||||||||||
Rialto | Variable Interest Entity, Primary Beneficiary | FDIC Portfolio | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Assets | 213,800,000 | 355,200,000 | 213,800,000 | 355,200,000 | |||||||||||
Liabilities | 10,300,000 | 11,300,000 | $ 10,300,000 | 11,300,000 | |||||||||||
Rialto | Commercial REO | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Estimated useful life | 40 years | ||||||||||||||
Rialto | Residential REO | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Estimated useful life | 27 years 6 months | ||||||||||||||
Lennar Homebuilding | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Interest incurred | $ 281,400,000 | 288,500,000 | 273,400,000 | ||||||||||||
Interest capitalized | 276,800,000 | 276,100,000 | $ 236,900,000 | ||||||||||||
Assets | [1] | 11,804,768,000 | 11,072,820,000 | 11,804,768,000 | 11,072,820,000 | ||||||||||
Liabilities | [2] | $ 6,005,978,000 | 6,452,285,000 | $ 6,005,978,000 | 6,452,285,000 | ||||||||||
Minimum | Furniture, Fixtures and Equipment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Estimated useful life | 2 years | ||||||||||||||
Maximum | Furniture, Fixtures and Equipment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Estimated useful life | 10 years | ||||||||||||||
Level 3 | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Carrying value of homesites impaired | $ 19,400,000 | $ 19,400,000 | |||||||||||||
Communities | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Discount rate | 20.00% | ||||||||||||||
Communities | Minimum | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Discount rate | 10.00% | ||||||||||||||
Communities | Maximum | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Discount rate | 20.00% | ||||||||||||||
Real Estate Owned | Minimum | Rialto | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Capitalization rate | 8.00% | ||||||||||||||
Real Estate Owned | Maximum | Rialto | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Capitalization rate | 12.00% | ||||||||||||||
Stock Option Awards | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Expiration period | 10 years | ||||||||||||||
|
Summary Of Significant Accounting Policies (Unobservable inputs) (Details) - Communities $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2016 |
Nov. 30, 2015
USD ($)
homes
|
Nov. 30, 2014
USD ($)
homes
|
|
Segment Reporting Information [Line Items] | |||
Discount rate | 20.00% | ||
Minimum | |||
Segment Reporting Information [Line Items] | |||
Discount rate | 10.00% | ||
Maximum | |||
Segment Reporting Information [Line Items] | |||
Discount rate | 20.00% | ||
Level 3 | Discounted Cash Flow Model | Fair Value, Measurements, Nonrecurring | |||
Segment Reporting Information [Line Items] | |||
Average selling price | $ | $ 164 | ||
Absorption rate per quarter (homes) | homes | 12 | ||
Discount rate | 20.00% | ||
Level 3 | Discounted Cash Flow Model | Fair Value, Measurements, Nonrecurring | Minimum | |||
Segment Reporting Information [Line Items] | |||
Average selling price | $ | $ 158 | ||
Absorption rate per quarter (homes) | homes | 3 | ||
Discount rate | 12.00% | ||
Level 3 | Discounted Cash Flow Model | Fair Value, Measurements, Nonrecurring | Maximum | |||
Segment Reporting Information [Line Items] | |||
Average selling price | $ | $ 1,300 | ||
Absorption rate per quarter (homes) | homes | 16 | ||
Discount rate | 20.00% |
Summary Of Significant Accounting Policies (Schedule Of Interest Expense) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Segment Reporting Information [Line Items] | |||
Total interest expense | $ 4,626 | $ 12,454 | $ 36,551 |
Lennar Homebuilding | |||
Segment Reporting Information [Line Items] | |||
Other interest expense | 4,626 | 12,454 | 36,551 |
Total interest expense | 245,061 | 220,147 | 201,539 |
Lennar Homebuilding | Inventory, Homes | |||
Segment Reporting Information [Line Items] | |||
Interest expense | 235,148 | 205,200 | 161,371 |
Lennar Homebuilding | Inventory, Land | |||
Segment Reporting Information [Line Items] | |||
Interest expense | $ 5,287 | $ 2,493 | $ 3,617 |
Summary Of Significant Accounting Policies (Schedule Of Warranty Reserve) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Nov. 30, 2016 |
Nov. 30, 2015 |
|
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Warranty reserve, beginning of year | $ 130,853 | $ 115,927 |
Warranties issued | 96,934 | 81,505 |
Adjustments to pre-existing warranties from changes in estimates | 2,079 | 11,451 |
Payments | (94,463) | (78,030) |
Warranty reserve, end of year | $ 135,403 | $ 130,853 |
Summary Of Significant Accounting Policies (Loan Origination Liabilities) (Details) - Lennar Financial Services - Loan Origination Liabilities - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Nov. 30, 2016 |
Nov. 30, 2015 |
|
Loan Origination Liabilities [Roll Forward] | ||
Loan origination liabilities, beginning of year | $ 19,492 | $ 11,818 |
Provision for losses | 4,627 | 4,040 |
Adjustments to pre-existing provisions for losses from changes in estimates | 1,224 | 4,415 |
Payments/settlements | (438) | (781) |
Loan origination liabilities, end of year | $ 24,905 | $ 19,492 |
Operating and Reporting Segments (Narrative) (Details) |
12 Months Ended |
---|---|
Nov. 30, 2016
segment
| |
Southeast Florida | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 2 |
Operating And Reporting Segments (Schedule of Segment Assets, Investments in Unconsolidated Entities, and Goodwill) (Details) - USD ($) $ in Thousands |
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
|||||
---|---|---|---|---|---|---|---|---|
Segment Reporting Information [Line Items] | ||||||||
Assets | $ 15,361,781 | [1] | $ 14,419,509 | [1] | $ 12,923,151 | |||
Lennar Homebuilding | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Assets | [1] | 11,804,768 | 11,072,820 | |||||
Investments in unconsolidated entities | 811,723 | [1] | 741,551 | [1] | 656,837 | |||
Rialto | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Assets | [1] | 1,276,210 | 1,505,500 | |||||
Investments in unconsolidated entities | 245,741 | 224,869 | ||||||
Goodwill | 5,396 | 5,396 | 5,396 | |||||
Lennar Financial Services | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Assets | [1] | 1,754,672 | 1,425,837 | |||||
Goodwill | 39,838 | 38,854 | 38,854 | |||||
Lennar Multifamily | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Assets | [1] | 526,131 | 415,352 | |||||
Investments in unconsolidated entities | 318,559 | 250,876 | ||||||
Operating Segments | Homebuilding East | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Assets | 3,512,990 | 3,140,604 | 3,046,684 | |||||
Investments in unconsolidated entities | 62,900 | 40,573 | 43,290 | |||||
Operating Segments | Homebuilding Central | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Assets | 1,993,403 | 1,902,581 | 1,632,529 | |||||
Investments in unconsolidated entities | 36,031 | 35,925 | 35,934 | |||||
Operating Segments | Homebuilding West | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Assets | 4,318,924 | 4,157,616 | 3,454,611 | |||||
Investments in unconsolidated entities | 696,471 | 649,170 | 564,643 | |||||
Operating Segments | Rialto | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Assets | 1,276,210 | 1,505,500 | 1,451,983 | |||||
Investments in unconsolidated entities | 245,741 | 224,869 | 175,700 | |||||
Operating Segments | Lennar Financial Services | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Assets | 1,754,672 | 1,425,837 | 1,177,053 | |||||
Operating Segments | Lennar Multifamily | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Assets | 526,131 | 415,352 | 268,014 | |||||
Investments in unconsolidated entities | 318,559 | 250,876 | 105,674 | |||||
Homebuilding Other | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Assets | 907,523 | 858,000 | 880,912 | |||||
Investments in unconsolidated entities | 16,321 | 15,883 | 12,970 | |||||
Corporate and unallocated | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Assets | $ 1,071,928 | $ 1,014,019 | $ 1,011,365 | |||||
|
Operating and Reporting Segments (Schedule of Segment Revenues, Operating Earnings (Loss), General and Administrative Expenses, and Earnings Before Income Taxes) (Details) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2016
USD ($)
|
Aug. 31, 2016
USD ($)
|
May 31, 2016
USD ($)
|
Feb. 29, 2016
USD ($)
|
Nov. 30, 2015
USD ($)
|
Aug. 31, 2015
USD ($)
|
May 31, 2015
USD ($)
|
Feb. 28, 2015
USD ($)
|
Nov. 30, 2016
USD ($)
property
$ / homes
|
Nov. 30, 2015
USD ($)
property
$ / homes
|
Nov. 30, 2014
USD ($)
property
$ / homes
|
|
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | $ 3,376,626 | $ 2,833,894 | $ 2,745,815 | $ 1,993,664 | $ 2,945,567 | $ 2,491,698 | $ 2,392,604 | $ 1,644,139 | $ 10,949,999 | $ 9,474,008 | $ 7,779,812 |
Operating earnings (loss) | 1,563,031 | 1,425,860 | 1,146,945 | ||||||||
Corporate general and administrative expenses | 232,562 | 216,244 | 177,161 | ||||||||
Earnings (loss) before income taxes | $ 461,379 | $ 339,558 | $ 327,839 | $ 201,693 | $ 432,505 | $ 320,658 | $ 279,810 | $ 176,643 | 1,330,469 | 1,209,616 | 969,784 |
Sales incentives | $ 596,300 | $ 518,100 | $ 449,200 | ||||||||
Sales incentives per home delivered (in USD per share) | $ / homes | 22,500 | 21,400 | 21,400 | ||||||||
Equity in earnings (loss) from unconsolidated entities | $ 55,205 | $ 105,184 | $ 73,376 | ||||||||
Lennar Financial Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 687,255 | 620,527 | 454,381 | ||||||||
Rialto | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 233,966 | 221,923 | 230,521 | ||||||||
Equity in earnings (loss) from unconsolidated entities | 18,961 | 22,293 | 59,277 | ||||||||
Lennar Multifamily | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 287,441 | 164,613 | 69,780 | ||||||||
Equity in earnings (loss) from unconsolidated entities | 85,519 | 19,518 | 14,454 | ||||||||
Gain on disposition of assets | $ 91,000 | $ 22,200 | $ 14,700 | ||||||||
Number of operating properties sold | property | 7 | 2 | 2 | ||||||||
Lennar Homebuilding | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | $ 9,741,337 | $ 8,466,945 | $ 7,025,130 | ||||||||
Equity in earnings (loss) from unconsolidated entities | (49,275) | 63,373 | (355) | ||||||||
Operating Segments | Homebuilding East | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 3,941,336 | 3,563,678 | 2,940,579 | ||||||||
Operating earnings (loss) | 617,175 | 580,863 | 502,071 | ||||||||
Equity in earnings (loss) from unconsolidated entities | (230) | 118 | 1,678 | ||||||||
Operating Segments | Homebuilding Central | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 2,283,579 | 1,944,312 | 1,650,053 | ||||||||
Operating earnings (loss) | 245,975 | 208,698 | 183,207 | ||||||||
Equity in earnings (loss) from unconsolidated entities | 401 | 75 | (10) | ||||||||
Operating Segments | Homebuilding West | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 2,757,658 | 2,365,519 | 1,796,375 | ||||||||
Operating earnings (loss) | 396,346 | 435,818 | 292,719 | ||||||||
Equity in earnings (loss) from unconsolidated entities | (49,731) | 62,960 | (1,647) | ||||||||
Operating Segments | Lennar Financial Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 687,255 | 620,527 | 454,381 | ||||||||
Operating earnings (loss) | 163,617 | 127,795 | 80,138 | ||||||||
Operating Segments | Rialto | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 233,966 | 221,923 | 230,521 | ||||||||
Operating earnings (loss) | (16,692) | 33,595 | 44,079 | ||||||||
Equity in earnings (loss) from unconsolidated entities | 18,961 | 22,293 | 59,277 | ||||||||
Operating Segments | Lennar Multifamily | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 287,441 | 164,613 | 69,780 | ||||||||
Operating earnings (loss) | 71,174 | (7,171) | (10,993) | ||||||||
Equity in earnings (loss) from unconsolidated entities | 85,519 | 19,518 | 14,454 | ||||||||
Homebuilding Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 758,764 | 593,436 | 638,123 | ||||||||
Operating earnings (loss) | 85,436 | 46,262 | 55,724 | ||||||||
Equity in earnings (loss) from unconsolidated entities | 285 | $ 220 | $ (376) | ||||||||
Hospital | Rialto | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Write-off of uncollectible receivables | $ 16,000 |
Operating and Reporting Segments (Schedule of Other Segment Financial Disclosures) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Segment Reporting Information [Line Items] | |||
Total interest expense | $ 4,626 | $ 12,454 | $ 36,551 |
Depreciation and amortization | 105,735 | 87,408 | 79,123 |
Net additions to (disposals of) operating properties and equipment | 65,608 | (41,355) | (21,338) |
Equity in earnings (loss) from unconsolidated entities | 55,205 | 105,184 | 73,376 |
Homebuilding West | FivePoint Unconsolidated Entity | |||
Segment Reporting Information [Line Items] | |||
Equity in earnings (loss) from unconsolidated entities | 42,600 | ||
Homebuilding West | Unconsolidated Entity | |||
Segment Reporting Information [Line Items] | |||
Equity in earnings (loss) from unconsolidated entities | 12,700 | 82,800 | 4,700 |
Lennar Homebuilding | |||
Segment Reporting Information [Line Items] | |||
Total interest expense | 245,061 | 220,147 | 201,539 |
Equity in earnings (loss) from unconsolidated entities | (49,275) | 63,373 | (355) |
Lennar Homebuilding | FivePoint Unconsolidated Entity | |||
Segment Reporting Information [Line Items] | |||
Equity in earnings (loss) from unconsolidated entities | 42,600 | ||
Lennar Homebuilding | Unconsolidated Entity | |||
Segment Reporting Information [Line Items] | |||
Equity in earnings (loss) from unconsolidated entities | 12,700 | 82,800 | |
Valuation adjustments related to assets of unconsolidated entities | 4,600 | ||
Rialto | |||
Segment Reporting Information [Line Items] | |||
Equity in earnings (loss) from unconsolidated entities | 18,961 | 22,293 | 59,277 |
Lennar Multifamily | |||
Segment Reporting Information [Line Items] | |||
Equity in earnings (loss) from unconsolidated entities | 85,519 | 19,518 | 14,454 |
Operating Segments | Homebuilding East | |||
Segment Reporting Information [Line Items] | |||
Total interest expense | 92,541 | 94,425 | 86,744 |
Depreciation and amortization | 18,713 | 16,877 | 13,899 |
Net additions to (disposals of) operating properties and equipment | (10,379) | 316 | (42,430) |
Equity in earnings (loss) from unconsolidated entities | (230) | 118 | 1,678 |
Disposal of operating properties and equipment | 44,100 | ||
Operating Segments | Homebuilding Central | |||
Segment Reporting Information [Line Items] | |||
Total interest expense | 48,879 | 41,280 | 39,507 |
Depreciation and amortization | 10,328 | 9,881 | 8,820 |
Net additions to (disposals of) operating properties and equipment | 2,385 | (18) | 584 |
Equity in earnings (loss) from unconsolidated entities | 401 | 75 | (10) |
Operating Segments | Homebuilding West | |||
Segment Reporting Information [Line Items] | |||
Total interest expense | 87,293 | 70,397 | 58,999 |
Depreciation and amortization | 19,437 | 17,683 | 14,533 |
Net additions to (disposals of) operating properties and equipment | 24,438 | (11,482) | 6,719 |
Equity in earnings (loss) from unconsolidated entities | (49,731) | 62,960 | (1,647) |
Disposal of operating properties and equipment | 59,400 | ||
Operating Segments | Homebuilding West | Unconsolidated Entity | |||
Segment Reporting Information [Line Items] | |||
Valuation adjustments related to assets of unconsolidated entities | 4,300 | ||
Operating Segments | Lennar Financial Services | |||
Segment Reporting Information [Line Items] | |||
Interest income, net | 12,388 | 13,547 | 6,585 |
Depreciation and amortization | 7,667 | 6,100 | 4,539 |
Net additions to (disposals of) operating properties and equipment | 6,218 | 3,306 | 4,502 |
Operating Segments | Rialto | |||
Segment Reporting Information [Line Items] | |||
Total interest expense | 40,303 | 43,127 | 36,531 |
Depreciation and amortization | 7,590 | 7,758 | 7,367 |
Net additions to (disposals of) operating properties and equipment | 1,908 | 9,382 | 4,361 |
Equity in earnings (loss) from unconsolidated entities | 18,961 | 22,293 | 59,277 |
Operating Segments | Lennar Multifamily | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 2,472 | 1,110 | 595 |
Net additions to (disposals of) operating properties and equipment | 1,666 | 2,147 | 1,907 |
Equity in earnings (loss) from unconsolidated entities | 85,519 | 19,518 | 14,454 |
Corporate and unallocated | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 34,966 | 23,522 | 23,641 |
Net additions to (disposals of) operating properties and equipment | 12,645 | 27,466 | 1,977 |
Homebuilding Other | |||
Segment Reporting Information [Line Items] | |||
Total interest expense | 16,348 | 14,045 | 16,289 |
Depreciation and amortization | 4,562 | 4,477 | 5,729 |
Net additions to (disposals of) operating properties and equipment | 26,727 | (72,472) | 1,042 |
Equity in earnings (loss) from unconsolidated entities | $ 285 | 220 | $ (376) |
Disposal of operating properties and equipment | $ 73,300 |
Lennar Homebuilding Receivables (Schedule Of Lennar Homebuilding Receivables) (Details) - Lennar Homebuilding - USD ($) $ in Thousands |
Nov. 30, 2016 |
Nov. 30, 2015 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 67,296 | $ 41,653 |
Mortgage and notes receivable | 39,788 | 22,365 |
Income tax receivables | 0 | 10,620 |
Receivable, gross | 107,084 | 74,638 |
Allowance for doubtful accounts | (108) | (100) |
Receivable, net | $ 106,976 | $ 74,538 |
Lennar Homebuilding Investments In Unconsolidated Entities (Statements Of Operations) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Schedule of Equity Method Investments [Line Items] | |||
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities | $ 55,205 | $ 105,184 | $ 73,376 |
Lennar Homebuilding | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenues | 439,874 | 1,309,517 | 263,395 |
Costs and expenses | 578,831 | 969,509 | 291,993 |
Other income | 0 | 49,343 | 0 |
Net earnings of unconsolidated entities | (138,957) | 389,351 | (28,598) |
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities | (49,275) | 63,373 | $ (355) |
Unconsolidated Entity | Lennar Homebuilding | |||
Schedule of Equity Method Investments [Line Items] | |||
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities | $ 12,700 | $ 82,800 |
Lennar Homebuilding Investments In Unconsolidated Entities (Narrative) (Details) $ in Thousands |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
May 02, 2016
investment
|
Nov. 30, 2016
USD ($)
investment
|
Nov. 30, 2015
USD ($)
homes
|
Nov. 30, 2014
USD ($)
|
|||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities | $ 55,205 | $ 105,184 | $ 73,376 | |||||
Lennar Homebuilding | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities | (49,275) | 63,373 | (355) | |||||
Investments in unconsolidated entities | 811,723 | [1] | 741,551 | [1] | 656,837 | |||
Underlying equity in unconsolidated partners' net assets | 1,200,000 | 839,500 | ||||||
Sale of homesites | 130,400 | 177,600 | 59,000 | |||||
Non-recourse land seller debt and other debt | 323,995 | 324,000 | ||||||
Lennar Homebuilding | Unconsolidated Entities | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Management fees and reimbursement of expenses | 13,200 | 31,300 | 30,700 | |||||
Lennar Homebuilding | FivePoint Unconsolidated Entity | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities | 42,600 | |||||||
Lennar Homebuilding | Unconsolidated Entity | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities | 12,700 | 82,800 | ||||||
Valuation adjustments related to assets of unconsolidated entities | $ 4,600 | |||||||
Non-recourse land seller debt and other debt | $ 320,000 | $ 320,000 | ||||||
Lennar Homebuilding | Joint Ventures Previously Managed by FivePoint Communities | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity Method Investment, Measurement Period | 1 year | |||||||
Strategic joint ventures contributed | investment | 3 | 3 | ||||||
Lennar Homebuilding | Joint Venture | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership percentage | 50.00% | |||||||
Lennar Homebuilding | Joint Venture | Unconsolidated Entity | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Number of homesites sold | homes | 800 | |||||||
Gross profit on sale of homesites | $ 157,400 | |||||||
Sale of homesites | $ 472,000 | |||||||
Lennar Homebuilding | Third Party | Unconsolidated Entity | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Number of homesites sold | homes | 700 | |||||||
Lennar Homebuilding | Lennar | Unconsolidated Entity | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Number of homesites sold | homes | 300 | |||||||
Gross profit on sale of homesites | $ 49,300 | |||||||
|
Lennar Homebuilding Investments In Unconsolidated Entities (Balance Sheets) (Details) - Lennar Homebuilding - USD ($) $ in Thousands |
Nov. 30, 2016 |
Nov. 30, 2015 |
---|---|---|
Assets: | ||
Cash and cash equivalents | $ 221,334 | $ 248,980 |
Inventories | 3,889,795 | 3,059,054 |
Other assets | 1,338,302 | 465,404 |
Assets | 5,449,431 | 3,773,438 |
Liabilities and equity: | ||
Accounts payable and other liabilities | 791,245 | 288,192 |
Debt | 892,850 | 792,886 |
Equity | 3,765,336 | 2,692,360 |
Liabilities and equity | $ 5,449,431 | $ 3,773,438 |
Lennar Homebuilding Investments In Unconsolidated Entities (Total Debt Of Unconsolidated Entities) (Details) - Lennar Homebuilding - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Nov. 30, 2016 |
Nov. 30, 2015 |
|
Schedule of Equity Method Investments [Line Items] | ||
Non-recourse bank debt and other debt (partner’s share of several recourse) | $ 48,945 | $ 50,411 |
Non-recourse land seller debt and other debt | 323,995 | 324,000 |
Non-recourse debt with completion guarantees | 147,100 | 146,760 |
Non-recourse debt without completion guarantees | 320,372 | 260,734 |
Non-recourse debt to the Company | 840,412 | 781,905 |
The Company’s maximum recourse exposure | 52,438 | 10,981 |
Total debt | $ 892,850 | $ 792,886 |
The Company’s maximum recourse exposure as a % of total JV debt | 6.00% | 1.00% |
Unconsolidated Entity | ||
Schedule of Equity Method Investments [Line Items] | ||
Non-recourse land seller debt and other debt | $ 320,000 | $ 320,000 |
Lennar Homebuilding Operating Properties And Equipment (Details) - USD ($) $ in Thousands |
Nov. 30, 2016 |
Nov. 30, 2015 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Operating properties and equipment, gross | $ 260,553 | $ 193,908 |
Accumulated depreciation and amortization | (86,939) | (78,351) |
Operating properties and equipment, net | 173,614 | 115,557 |
Operating properties | ||
Property, Plant and Equipment [Line Items] | ||
Operating properties and equipment, gross | 151,461 | 93,174 |
Sale of operating properties | 132,700 | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Operating properties and equipment, gross | 40,513 | 34,064 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Operating properties and equipment, gross | $ 68,579 | $ 66,670 |
Lennar Homebuilding Senior Notes And Other Debts Payable (Schedule Of Senior Notes And Other Debts Payable) (Details) - USD ($) $ in Thousands |
Nov. 30, 2016 |
Mar. 31, 2016 |
Nov. 30, 2015 |
||
---|---|---|---|---|---|
Lennar Homebuilding | |||||
Debt Instrument [Line Items] | |||||
Senior notes and other debts payable | [1] | $ 4,575,977 | $ 5,025,130 | ||
Interest rate | 7.50% | ||||
Senior Notes | 12.25% senior notes due 2017 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 12.25% | ||||
Senior Notes | 4.75% senior notes due December 2017 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.75% | ||||
Senior Notes | 6.95% senior notes due 2018 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 6.95% | ||||
Senior Notes | 4.125% senior notes due December 2018 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.125% | ||||
Senior Notes | 4.500% senior notes due 2019 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.50% | ||||
Senior Notes | 4.50% senior notes due 2019 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.50% | ||||
Senior Notes | 4.750% senior notes due 2021 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.75% | ||||
Senior Notes | 4.750% senior notes due 2022 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.75% | ||||
Senior Notes | 4.875% senior notes due December 2023 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.875% | ||||
Senior Notes | 4.750% senior notes due 2025 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.75% | ||||
Senior Notes | 3.25% convertible senior notes due 2021 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 3.25% | ||||
Senior Notes | Lennar Homebuilding | 12.25% senior notes due 2017 | |||||
Debt Instrument [Line Items] | |||||
Senior notes and other debts payable | $ 398,232 | 396,252 | |||
Interest rate | 12.25% | ||||
Senior Notes | Lennar Homebuilding | 4.75% senior notes due December 2017 | |||||
Debt Instrument [Line Items] | |||||
Senior notes and other debts payable | $ 398,479 | 397,736 | |||
Interest rate | 4.75% | ||||
Senior Notes | Lennar Homebuilding | 6.95% senior notes due 2018 | |||||
Debt Instrument [Line Items] | |||||
Senior notes and other debts payable | $ 248,474 | 247,632 | |||
Interest rate | 6.95% | ||||
Senior Notes | Lennar Homebuilding | 4.125% senior notes due December 2018 | |||||
Debt Instrument [Line Items] | |||||
Senior notes and other debts payable | $ 273,889 | 273,319 | |||
Interest rate | 4.125% | ||||
Senior Notes | Lennar Homebuilding | 4.500% senior notes due 2019 | |||||
Debt Instrument [Line Items] | |||||
Senior notes and other debts payable | $ 498,002 | 497,210 | |||
Interest rate | 4.50% | ||||
Senior Notes | Lennar Homebuilding | 4.50% senior notes due 2019 | |||||
Debt Instrument [Line Items] | |||||
Senior notes and other debts payable | $ 597,474 | 596,622 | |||
Interest rate | 4.50% | ||||
Senior Notes | Lennar Homebuilding | 4.750% senior notes due 2021 | |||||
Debt Instrument [Line Items] | |||||
Senior notes and other debts payable | $ 496,547 | 0 | |||
Interest rate | 4.75% | ||||
Senior Notes | Lennar Homebuilding | 4.750% senior notes due 2022 | |||||
Debt Instrument [Line Items] | |||||
Senior notes and other debts payable | $ 568,404 | 567,325 | |||
Interest rate | 4.75% | ||||
Senior Notes | Lennar Homebuilding | 4.875% senior notes due December 2023 | |||||
Debt Instrument [Line Items] | |||||
Senior notes and other debts payable | $ 394,170 | 393,545 | |||
Interest rate | 4.875% | ||||
Senior Notes | Lennar Homebuilding | 4.750% senior notes due 2025 | |||||
Debt Instrument [Line Items] | |||||
Senior notes and other debts payable | $ 496,226 | 495,784 | |||
Interest rate | 4.75% | ||||
Senior Notes | Lennar Homebuilding | 6.50% senior notes due 2016 | |||||
Debt Instrument [Line Items] | |||||
Senior notes and other debts payable | $ 0 | 249,905 | |||
Interest rate | 6.50% | 6.50% | |||
Senior Notes | Lennar Homebuilding | 2.75% convertible senior notes due 2020 | |||||
Debt Instrument [Line Items] | |||||
Senior notes and other debts payable | $ 0 | 233,225 | |||
Interest rate | 2.75% | ||||
Senior Notes | Lennar Homebuilding | 3.25% convertible senior notes due 2021 | |||||
Debt Instrument [Line Items] | |||||
Senior notes and other debts payable | $ 0 | 398,194 | |||
Interest rate | 3.25% | ||||
Mortgage notes on land and other debt | Lennar Homebuilding | |||||
Debt Instrument [Line Items] | |||||
Senior notes and other debts payable | $ 206,080 | $ 278,381 | |||
|
Lennar Homebuilding Senior Notes And Other Debts Payable (Narrative) (Details) $ / shares in Units, shares in Thousands |
2 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jan. 20, 2017
USD ($)
|
Nov. 30, 2016
USD ($)
$ / shares
shares
|
Nov. 30, 2015
USD ($)
shares
|
Nov. 30, 2014
USD ($)
shares
|
Jun. 30, 2016
USD ($)
|
May 31, 2016
USD ($)
|
Mar. 31, 2016
USD ($)
|
Jun. 29, 2015
USD ($)
|
|||
Debt Instrument [Line Items] | ||||||||||
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities | $ 55,205,000 | $ 105,184,000 | $ 73,376,000 | |||||||
Letters of credit outstanding | 481,100,000 | |||||||||
Proceeds from senior notes | $ 499,024,000 | $ 1,146,647,000 | $ 955,025,000 | |||||||
Shares included in the calculation for diluted earnings per share related to the dilutive effective of convertible senior notes (in shares) | shares | 12,288 | 25,614 | 26,023 | |||||||
Converted debt exchanged for cash | $ 234,028,000 | $ 212,107,000 | $ 0 | |||||||
Mortgages notes on land and other debt retired | 210,968,000 | 258,108,000 | 299,713,000 | |||||||
Surety Bond | District of Maryland | Pending Litigation | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Outstanding surety bonds | $ 223,400,000 | $ 223,400,000 | ||||||||
Senior Notes | 3.25% convertible senior notes due 2021 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 3.25% | |||||||||
Lennar Homebuilding | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities | $ (49,275,000) | 63,373,000 | $ (355,000) | |||||||
Senior notes and other debts payable | [1] | $ 4,575,977,000 | 5,025,130,000 | |||||||
Interest rate | 7.50% | |||||||||
Minimum required guarantee of debt by subsidiaries to be a guarantor | $ 75,000,000 | |||||||||
Weighted average interest rate | 3.10% | |||||||||
Lennar Homebuilding | Surety Bond | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Outstanding surety bonds | $ 1,400,000,000 | |||||||||
Anticipated future costs to complete site improvements | $ 488,900,000 | |||||||||
Anticipated future costs to complete site improvements as a percent | 42.00% | |||||||||
Lennar Homebuilding | Surety Bond | District of Maryland | Pending Litigation | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Outstanding surety bonds | $ 223,400,000 | |||||||||
Lennar Homebuilding | 4.125% senior notes due 2022 | Subsequent Event | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Proceeds from senior notes | $ 596,100,000 | |||||||||
Lennar Homebuilding | Unsecured Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowings | $ 1,800,000,000 | $ 1,600,000,000 | ||||||||
Accordion feature | 298,000,000 | |||||||||
Senior notes and other debts payable | 0 | 0 | ||||||||
Lennar Homebuilding | Unsecured Revolving Credit Facility | Credit Facility Due in June 2020 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowings | 1,300,000,000 | |||||||||
Lennar Homebuilding | Unsecured Revolving Credit Facility | Credit Facility Due in June 2018 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowings | $ 160,000,000 | |||||||||
Lennar Homebuilding | Letters of Credit | Letters of Credit Available for Issuance Under Unsecured Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowings | 500,000,000 | |||||||||
Lennar Homebuilding | Letters of Credit | Letters of Credit Available for Issuance from Other Financial Institutions | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowings | 320,000,000 | |||||||||
Lennar Homebuilding | Performance Letters Of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Letters of credit outstanding | 270,800,000 | 236,500,000 | ||||||||
Lennar Homebuilding | Financial Letters Of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Letters of credit outstanding | 210,300,000 | 216,700,000 | ||||||||
Lennar Homebuilding | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt issuance costs | $ 22,100,000 | 26,400,000 | ||||||||
Converted debt exchanged for shares (in shares) | shares | 17,000 | |||||||||
Lennar Homebuilding | Senior Notes | 4.125% senior notes due 2022 | Subsequent Event | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal Amount | $ 600,000,000 | |||||||||
Interest rate | 4.125% | |||||||||
Price | 100.00% | |||||||||
Lennar Homebuilding | Senior Notes | 6.50% senior notes due 2016 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior notes and other debts payable | $ 0 | 249,905,000 | ||||||||
Principal Amount | $ 250,000,000 | |||||||||
Interest rate | 6.50% | 6.50% | ||||||||
Price | 100.00% | |||||||||
Lennar Homebuilding | Senior Notes | 3.25% convertible senior notes due 2021 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior notes and other debts payable | $ 0 | $ 398,194,000 | ||||||||
Interest rate | 3.25% | |||||||||
Conversion rate | 0.0426 | |||||||||
Conversion price (in USD per share) | $ / shares | $ 23.50 | |||||||||
Shares included in the calculation for diluted earnings per share related to the dilutive effective of convertible senior notes (in shares) | shares | 11,900 | 17,000 | 17,000 | |||||||
Conversion of convertible senior notes to equity | $ 400,000,000 | |||||||||
Lennar Homebuilding | Senior Notes | 2.75% convertible senior notes due 2020 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior notes and other debts payable | $ 0 | $ 233,225,000 | ||||||||
Interest rate | 2.75% | |||||||||
Conversion rate | 0.0452 | |||||||||
Conversion price (in USD per share) | $ / shares | $ 22.13 | |||||||||
Shares included in the calculation for diluted earnings per share related to the dilutive effective of convertible senior notes (in shares) | shares | 400 | 8,600 | 9,000 | |||||||
Converted debt exchanged for shares (in shares) | shares | 5,200 | |||||||||
Aggregate outstanding principal amount of convertible debt | $ 234,000,000 | |||||||||
Converted debt exchanged for cash | 234,000,000 | |||||||||
Lennar Homebuilding | Mortgage notes on land and other debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior notes and other debts payable | 206,080,000 | $ 278,381,000 | ||||||||
Mortgages notes on land and other debt retired | $ 211,000,000.0 | $ 258,100,000 | ||||||||
|
Lennar Homebuilding Senior Notes And Other Debts Payable (Schedule of Senior and Convertible Senior Notes) (Details) - USD ($) |
1 Months Ended | 2 Months Ended | 4 Months Ended | 7 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Nov. 30, 2015 |
Apr. 30, 2015 |
Feb. 28, 2014 |
Feb. 28, 2013 |
May 31, 2010 |
Apr. 30, 2009 |
Aug. 31, 2012 |
Feb. 28, 2015 |
Apr. 30, 2013 |
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
Aug. 31, 2016 |
|
Debt Instrument [Line Items] | ||||||||||||||
Net Proceeds | $ 499,024,000 | $ 1,146,647,000 | $ 955,025,000 | |||||||||||
Senior Notes | 12.25% senior notes due 2017 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate | 12.25% | |||||||||||||
Senior Notes | 4.75% senior notes due December 2017 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate | 4.75% | |||||||||||||
Senior Notes | 6.95% senior notes due 2018 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate | 6.95% | |||||||||||||
Senior Notes | 4.125% senior notes due December 2018 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate | 4.125% | |||||||||||||
Senior Notes | 4.500% senior notes due 2019 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate | 4.50% | |||||||||||||
Senior Notes | 4.50% senior notes due 2019 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate | 4.50% | |||||||||||||
Senior Notes | 4.750% senior notes due 2021 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate | 4.75% | |||||||||||||
Senior Notes | 4.750% senior notes due 2022 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate | 4.75% | |||||||||||||
Senior Notes | 4.875% senior notes due December 2023 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate | 4.875% | |||||||||||||
Senior Notes | 4.750% senior notes due 2025 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate | 4.75% | |||||||||||||
Lennar Homebuilding | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate | 7.50% | |||||||||||||
Lennar Homebuilding | Senior Notes | 12.25% senior notes due 2017 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal Amount | $ 400,000,000 | |||||||||||||
Net Proceeds | $ 386,700,000 | |||||||||||||
Price | 98.098% | |||||||||||||
Interest rate | 12.25% | |||||||||||||
Lennar Homebuilding | Senior Notes | 4.75% senior notes due December 2017 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal Amount | $ 400,000,000 | |||||||||||||
Net Proceeds | $ 395,900,000 | |||||||||||||
Price | 100.00% | |||||||||||||
Interest rate | 4.75% | |||||||||||||
Lennar Homebuilding | Senior Notes | 6.95% senior notes due 2018 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal Amount | $ 250,000,000 | |||||||||||||
Net Proceeds | $ 243,900,000 | |||||||||||||
Price | 98.929% | |||||||||||||
Interest rate | 6.95% | |||||||||||||
Lennar Homebuilding | Senior Notes | 4.125% senior notes due December 2018 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal Amount | $ 275,000,000 | |||||||||||||
Net Proceeds | $ 271,718,000 | |||||||||||||
Price | 99.998% | |||||||||||||
Interest rate | 4.125% | |||||||||||||
Lennar Homebuilding | Senior Notes | 4.500% senior notes due 2019 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal Amount | $ 500,000,000 | |||||||||||||
Net Proceeds | 495,725,000 | |||||||||||||
Interest rate | 4.50% | |||||||||||||
Lennar Homebuilding | Senior Notes | 4.500% senior notes due 2019 issued at a price of 100% | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal Amount | $ 400,000,000 | |||||||||||||
Price | 100.00% | |||||||||||||
Lennar Homebuilding | Senior Notes | 4.500% senior notes due 2019 issued at a price of 100.5% | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal Amount | $ 100,000,000 | |||||||||||||
Price | 100.50% | |||||||||||||
Lennar Homebuilding | Senior Notes | 4.50% senior notes due 2019 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal Amount | $ 600,000,000 | |||||||||||||
Net Proceeds | 595,801,000 | |||||||||||||
Interest rate | 4.50% | |||||||||||||
Lennar Homebuilding | Senior Notes | 4.50% senior notes due 2019 issued at a price of 100% | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal Amount | $ 350,000,000 | |||||||||||||
Price | 100.00% | |||||||||||||
Lennar Homebuilding | Senior Notes | 4.50% senior notes due 2019 issued at a price of 100.25% | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal Amount | $ 250,000,000 | |||||||||||||
Price | 100.25% | |||||||||||||
Lennar Homebuilding | Senior Notes | 4.750% senior notes due 2021 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal Amount | $ 500,000,000 | |||||||||||||
Net Proceeds | $ 495,974,000 | |||||||||||||
Price | 100.00% | |||||||||||||
Interest rate | 4.75% | |||||||||||||
Lennar Homebuilding | Senior Notes | 4.750% senior notes due 2022 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal Amount | $ 575,000,000 | |||||||||||||
Net Proceeds | 567,585,000 | |||||||||||||
Interest rate | 4.75% | |||||||||||||
Lennar Homebuilding | Senior Notes | 4.750% senior notes due 2022 issued at a price of 100% | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal Amount | $ 350,000,000 | |||||||||||||
Price | 100.00% | |||||||||||||
Lennar Homebuilding | Senior Notes | 4.750% senior notes due 2022 issued at a price of 98.073% | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal Amount | $ 175,000,000 | |||||||||||||
Price | 98.073% | |||||||||||||
Lennar Homebuilding | Senior Notes | 4.750% senior notes due 2022 issued at a price of 98.250% | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal Amount | $ 50,000,000 | |||||||||||||
Price | 98.25% | |||||||||||||
Lennar Homebuilding | Senior Notes | 4.875% senior notes due December 2023 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal Amount | $ 400,000,000 | $ 400,000,000 | ||||||||||||
Net Proceeds | $ 393,622,000 | |||||||||||||
Price | 99.169% | 99.169% | ||||||||||||
Interest rate | 4.875% | |||||||||||||
Lennar Homebuilding | Senior Notes | 4.750% senior notes due 2025 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal Amount | $ 500,000,000 | |||||||||||||
Net Proceeds | $ 495,528,000 | |||||||||||||
Price | 100.00% | |||||||||||||
Interest rate | 4.75% |
Lennar Homebuilding Senior Notes And Other Debts Payable (Schedule Of Maturities Of Senior Notes And Other Debts Payable) (Details) - Lennar Homebuilding $ in Thousands |
Nov. 30, 2016
USD ($)
|
---|---|
Segment Reporting Information [Line Items] | |
2017 | $ 478,333 |
2018 | 695,208 |
2019 | 1,383,121 |
2020 | 4,396 |
2021 | 519,322 |
Thereafter | $ 1,524,950 |
Lennar Financial Services Segment (Schedule of Assets and Liabilities) (Details) - USD ($) $ in Thousands |
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
Nov. 30, 2013 |
|||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Assets: | |||||||||||
Cash and cash equivalents | $ 1,329,529 | $ 1,158,445 | $ 1,281,814 | $ 970,505 | |||||||
Total assets | 15,361,781 | [1] | 14,419,509 | [1] | 12,923,151 | ||||||
Liabilities: | |||||||||||
Total liabilities | [2] | 8,150,214 | 8,469,437 | ||||||||
Self insurance reserve | 87,600 | 96,500 | |||||||||
Lennar Financial Services | |||||||||||
Assets: | |||||||||||
Cash and cash equivalents | 123,964 | 106,777 | |||||||||
Restricted cash | 17,053 | 13,961 | |||||||||
Receivables, net | 409,528 | 242,808 | |||||||||
Loans held-for-sale | 939,405 | 843,252 | |||||||||
Loans held-for-investment, net | 30,004 | 30,998 | |||||||||
Investments held-to-maturity | 41,991 | 40,174 | |||||||||
Investments available-for-sale | 53,570 | 42,827 | |||||||||
Goodwill | 39,838 | 38,854 | $ 38,854 | ||||||||
Other | 99,319 | 66,186 | |||||||||
Total assets | [1] | 1,754,672 | 1,425,837 | ||||||||
Liabilities: | |||||||||||
Notes and other debts payable | 1,077,228 | 858,300 | |||||||||
Other | 241,055 | 225,678 | |||||||||
Total liabilities | [2] | 1,318,283 | 1,083,978 | ||||||||
Self insurance reserve | 57,400 | 65,000 | |||||||||
Lennar Financial Services | Mortgage servicing rights | |||||||||||
Liabilities: | |||||||||||
Mortgage servicing rights | 23,900 | 16,800 | |||||||||
Lennar Financial Services | Mortgage loan commitments | |||||||||||
Liabilities: | |||||||||||
Other assets | 7,400 | 13,100 | |||||||||
Lennar Financial Services | Forward contracts | |||||||||||
Liabilities: | |||||||||||
Other assets | $ 26,500 | $ 500 | |||||||||
|
Lennar Financial Services Segment (Warehouse Repurchase Facilities) (Details) - Lennar Financial Services - Warehouse Repurchase Facility - USD ($) |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2016 |
May 31, 2017 |
Feb. 28, 2017 |
|
Line of Credit Facility [Line Items] | |||
Maximum Aggregate Commitment | $ 1,300,000,000 | ||
364-day warehouse repurchase facility that matures December 2016 | |||
Line of Credit Facility [Line Items] | |||
Maximum Aggregate Commitment | $ 400,000,000 | ||
Warehouse repurchase facility term | 364 days | ||
Maximum Aggregate Commitment, uncommitted amount | $ 250,000,000 | ||
364-day warehouse repurchase facility that matures June 2017 | |||
Line of Credit Facility [Line Items] | |||
Maximum Aggregate Commitment | $ 600,000,000 | ||
Warehouse repurchase facility term | 364 days | ||
364-day warehouse repurchase facility that matures June 2017 | Forecast | |||
Line of Credit Facility [Line Items] | |||
Maximum Aggregate Commitment | $ 600,000,000 | $ 400,000,000 | |
364-day warehouse repurchase facility that matures September 2017 | |||
Line of Credit Facility [Line Items] | |||
Maximum Aggregate Commitment | $ 300,000,000 | ||
Warehouse repurchase facility term | 364 days |
Lennar Financial Services Segment (Narrative) (Details) - Lennar Financial Services - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Nov. 30, 2016 |
Nov. 30, 2015 |
|
Segment Reporting Information [Line Items] | ||
Borrowings under facilities | $ 1,077,228 | $ 858,300 |
Collateralized loans | 1,100,000 | 916,900 |
Warehouse Repurchase Facility | ||
Segment Reporting Information [Line Items] | ||
Borrowings under facilities | $ 1,100,000 | $ 858,300 |
Interest rate | 2.90% |
Rialto Segment (Assets And Liabilities Related To The Rialto Segment) (Details) - USD ($) $ in Thousands |
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
Nov. 30, 2013 |
|||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Assets: | |||||||||||
Cash and cash equivalents | $ 1,329,529 | $ 1,158,445 | $ 1,281,814 | $ 970,505 | |||||||
Total assets | 15,361,781 | [1] | 14,419,509 | [1] | 12,923,151 | ||||||
Liabilities: | |||||||||||
Total liabilities | [2] | 8,150,214 | 8,469,437 | ||||||||
Rialto | |||||||||||
Assets: | |||||||||||
Cash and cash equivalents | 148,827 | 150,219 | |||||||||
Restricted cash | 9,935 | 15,061 | |||||||||
Receivables, net | 204,518 | 154,948 | |||||||||
Loans held-for-sale | 126,947 | 316,275 | |||||||||
Loans receivable, net | 111,608 | 164,826 | |||||||||
Real estate owned - held-for-sale | 160,344 | 183,052 | 190,535 | ||||||||
Real estate owned - held-and-used, net | 83,359 | 153,717 | $ 255,795 | ||||||||
Investments in unconsolidated entities | 245,741 | 224,869 | |||||||||
Investments held-to-maturity | 71,260 | 25,625 | |||||||||
Other | 113,671 | 116,908 | |||||||||
Total assets | [1] | 1,276,210 | 1,505,500 | ||||||||
Liabilities: | |||||||||||
Notes and other debts payable | 622,335 | 771,728 | |||||||||
Other | 85,645 | 94,496 | |||||||||
Total liabilities | [2] | $ 707,980 | $ 866,224 | ||||||||
|
Rialto Segment (Narrative) (Details) |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2016
USD ($)
|
Nov. 30, 2016
USD ($)
transaction
|
Dec. 31, 2015 |
Nov. 30, 2015
USD ($)
transaction
|
Nov. 30, 2014
USD ($)
debt_instrument
|
Dec. 31, 2010
USD ($)
business
financial_institutions
property
loans
|
Dec. 31, 2014
USD ($)
|
|||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net income (loss) attributable to noncontrolling interest | $ 1,247,000 | $ 16,306,000 | $ (10,223,000) | ||||||||||||
Assets | $ 15,361,781,000 | [1] | 15,361,781,000 | [1] | 14,419,509,000 | [1] | $ 12,923,151,000 | ||||||||
Liabilities | [2] | $ 8,150,214,000 | 8,150,214,000 | 8,469,437,000 | |||||||||||
Origination of loans | $ 56,507,000 | 78,703,000 | |||||||||||||
Number of instruments issued | debt_instrument | 2 | ||||||||||||||
Senior Notes | 7.00% Senior Notes due 2018 | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Interest rate | 7.00% | 7.00% | |||||||||||||
Rialto | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Loan impairments | $ 18,200,000 | 10,400,000 | $ 57,100,000 | ||||||||||||
Net income (loss) attributable to noncontrolling interest | (18,800,000) | 4,800,000 | (22,500,000) | ||||||||||||
Assets | [1] | $ 1,276,210,000 | 1,276,210,000 | 1,505,500,000 | |||||||||||
Liabilities | [2] | 707,980,000 | 707,980,000 | 866,224,000 | |||||||||||
Accrual loans | 64,486,000 | 64,486,000 | 76,132,000 | ||||||||||||
Average recorded investment in impaired loans | 68,000,000 | 109,000,000 | |||||||||||||
Net gains from acquisitions of REO | 1,300,000 | ||||||||||||||
Net losses from acquisitions of REO | 1,300,000 | $ 6,800,000 | |||||||||||||
Borrowings under facilities | $ 622,335,000 | $ 622,335,000 | 771,728,000 | ||||||||||||
Percentage interest in loans | 75.00% | 75.00% | |||||||||||||
Maximum percentage of LLC equity units employees are eligible to receive as part of the carried interest incentive plan | 40.00% | ||||||||||||||
Investments held-to-maturity | $ 71,260,000 | $ 71,260,000 | 25,625,000 | ||||||||||||
Investment in private commercial real estate services company | $ 18,000,000 | ||||||||||||||
Rialto | 2.85% Structured Notes | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Interest rate | 2.85% | ||||||||||||||
Senior notes and other debts payable | 23,900,000 | 23,900,000 | 31,300,000 | ||||||||||||
Debt proceeds as a percentage of face value | 100.00% | ||||||||||||||
Rialto | 5.0% Structured Notes | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Interest rate | 5.00% | ||||||||||||||
Debt proceeds as a percentage of face value | 99.50% | ||||||||||||||
Rialto | Senior Notes | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Principal amount | $ 94,700,000 | ||||||||||||||
Rialto | Senior Notes | 7.00% Senior Notes due 2018 | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Principal amount | $ 350,000,000 | $ 350,000,000 | |||||||||||||
Interest rate | 7.00% | 7.00% | |||||||||||||
Senior notes and other debts payable | $ 348,700,000 | $ 348,700,000 | 347,900,000 | ||||||||||||
Rialto | Warehouse Repurchase Facility | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Borrowings under facilities | 180,200,000 | 180,200,000 | 317,100,000 | ||||||||||||
Rialto | Accrual Loans | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Allowance on accrual loans | 0 | 0 | |||||||||||||
Rialto | Rialto Mortgage Finance | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Origination of loans | 1,800,000,000 | 2,700,000,000 | |||||||||||||
Loans sold | $ 1,900,000,000 | $ 2,400,000,000 | |||||||||||||
Number of securitizations | transaction | 11 | 12 | |||||||||||||
Receivables from securitization | 199,800,000 | $ 199,800,000 | $ 151,800,000 | ||||||||||||
Rialto | Rialto Mortgage Finance | Accrual Loans | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Origination of loans | 81,200,000 | 62,300,000 | |||||||||||||
Rialto | Rialto Mortgage Finance | Loans held-for-sale | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Origination of loans | 1,700,000,000 | 2,600,000,000 | |||||||||||||
Rialto | Commercial Property Loan | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Accrual loans | 59,100,000 | ||||||||||||||
Rialto | Convertible Land Loan | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Accrual loans | 17,100,000 | ||||||||||||||
Rialto | Bank Portfolios | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Number of distressed residential and commercial real estate loans | loans | 400 | ||||||||||||||
Number of REO properties acquired | property | 300 | ||||||||||||||
Number of financial institutions real estate owned purchased from | financial_institutions | 3 | ||||||||||||||
Principal amount | $ 124,000,000 | ||||||||||||||
Senior notes and other debts payable | 30,300,000 | 30,300,000 | |||||||||||||
Rialto | Real Estate Funds | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Advanced distributions | 10,100,000 | 20,000,000.0 | 34,700,000 | ||||||||||||
Rialto | Commercial Mortgage-Backed Securities | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Investments held-to-maturity | $ 71,300,000 | 71,300,000 | 25,600,000 | ||||||||||||
Impairment charges | $ 0 | 0 | $ 0 | ||||||||||||
Rialto | Commercial Mortgage-Backed Securities | Maximum | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Discount rate | 72.00% | ||||||||||||||
Coupon rate | 4.00% | ||||||||||||||
Rialto | Commercial Mortgage-Backed Securities | Minimum | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Discount rate | 39.00% | ||||||||||||||
Coupon rate | 1.30% | ||||||||||||||
Rialto | FDIC Portfolio | Variable Interest Entity, Primary Beneficiary | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Assets | $ 213,800,000 | $ 213,800,000 | 355,200,000 | ||||||||||||
Liabilities | $ 10,300,000 | $ 10,300,000 | $ 11,300,000 | ||||||||||||
Rialto | FDIC Portfolio | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Managing member equity interests acquired | 40.00% | ||||||||||||||
Number of equity interests limited liability companies acquired | business | 2 | ||||||||||||||
|
Rialto Segment (Other Income Expense) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Segment Reporting Information [Line Items] | |||
Realized gains on REO sales, net | $ 21,380 | $ 36,380 | $ 36,901 |
Rialto | |||
Segment Reporting Information [Line Items] | |||
Realized gains on REO sales, net | 17,495 | 35,242 | 43,671 |
Unrealized losses on transfer of loans receivable to REO and impairments, net | (23,087) | (13,678) | (26,107) |
REO and other expenses | (54,008) | (57,740) | (58,067) |
Rental and other income | 19,750 | 48,430 | 43,898 |
Rialto other income (expense), net | (39,850) | $ 12,254 | $ 3,395 |
Hospital | Rialto | |||
Segment Reporting Information [Line Items] | |||
Write-off of uncollectible receivables | $ 16,000 |
Rialto Segment (Loans Receivable) (Details) - Rialto - USD ($) $ in Thousands |
Nov. 30, 2016 |
Nov. 30, 2015 |
---|---|---|
Segment Reporting Information [Line Items] | ||
Nonaccrual loans: FDIC and Bank Portfolios | $ 47,122 | $ 88,694 |
Accrual loans | 64,486 | 76,132 |
Loans receivable, net | $ 111,608 | $ 164,826 |
Rialto Segment (Nonaccrual Loans) (Details) - Rialto - USD ($) $ in Thousands |
Nov. 30, 2016 |
Nov. 30, 2015 |
---|---|---|
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | $ 164,015 | $ 276,813 |
Recorded Investment, With Allowance | 34,266 | 69,452 |
Recorded Investment, Without Allowance | 12,856 | 19,242 |
Total Recorded Investment | 47,122 | 88,694 |
Land | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 86,076 | 145,417 |
Recorded Investment, With Allowance | 30,157 | 59,740 |
Recorded Investment, Without Allowance | 2,273 | 1,165 |
Total Recorded Investment | 32,430 | 60,905 |
Single family homes | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 17,314 | 39,659 |
Recorded Investment, With Allowance | 2,835 | 8,344 |
Recorded Investment, Without Allowance | 2,348 | 3,459 |
Total Recorded Investment | 5,183 | 11,803 |
Commercial properties | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 9,949 | 13,458 |
Recorded Investment, With Allowance | 1,015 | 1,368 |
Recorded Investment, Without Allowance | 0 | 1,085 |
Total Recorded Investment | 1,015 | 2,453 |
Other | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 50,676 | 78,279 |
Recorded Investment, With Allowance | 259 | 0 |
Recorded Investment, Without Allowance | 8,235 | 13,533 |
Total Recorded Investment | $ 8,494 | $ 13,533 |
Rialto Segment (Allowance on Loan Receivables) (Details) - Nonperforming Financial Instruments [Member] - Rialto - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Nov. 30, 2016 |
Nov. 30, 2015 |
|
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance on nonaccrual loans, beginning of year | $ 35,625 | $ 58,326 |
Provision for loan losses | 30,227 | 35,625 |
Charge-offs | 18,229 | 10,363 |
Allowance on nonaccrual loans, end of year | $ (23,627) | $ (33,064) |
Rialto Segment (Activity in REO) (Details) - Rialto - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Nov. 30, 2016 |
Nov. 30, 2015 |
|
REO Held-For-Sale | ||
REO - held-for-sale, beginning of year | $ 183,052 | $ 190,535 |
Improvements | 3,006 | 5,535 |
Sales | (80,153) | (120,053) |
Impairments and unrealized losses | (25,153) | (12,192) |
Transfers to/from held-and-used, net | 79,592 | 119,227 |
REO - held-for-sale, end of year | 160,344 | 183,052 |
REO Held-and-Used | ||
REO - held-and-used, net, beginning of year | 153,717 | 255,795 |
Additions | 13,772 | 20,134 |
Improvements | (1,100) | 2,942 |
Impairments | (1,819) | (2,624) |
Depreciation | (1,619) | (2,339) |
Transfers to held-for-sale | (79,592) | (119,227) |
Other | 0 | (964) |
REO - held-and-used, net, end of year | $ 83,359 | $ 153,717 |
Rialto Segment (Schedule of Credit Facilities) (Details) - Rialto |
12 Months Ended | |
---|---|---|
Nov. 30, 2016
USD ($)
extension
|
Nov. 30, 2015
USD ($)
|
|
Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum Aggregate Commitment | $ 1,050,000,000 | |
364-day warehouse repurchase facility that matures April 2017 (one year extension) | ||
Line of Credit Facility [Line Items] | ||
Warehouse repurchase facility term | 364 days | |
364-day warehouse repurchase facility that matures April 2017 (one year extension) | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum Aggregate Commitment | $ 500,000,000 | |
364-day warehouse repurchase facility that matures January 2017 | ||
Line of Credit Facility [Line Items] | ||
Warehouse repurchase facility term | 364 days | |
364-day warehouse repurchase facility that matures January 2017 | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum Aggregate Commitment | $ 250,000,000 | |
Warehouse repurchase facility that matures December 2017 | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum Aggregate Commitment | 200,000,000 | |
Warehouse repurchase facility that matures August 2018 (two - one year extensions) | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum Aggregate Commitment | $ 100,000,000 | |
Warehouse repurchase facility extension term | 1 year | |
Warehouse repurchase facility number of extensions | extension | 2 | |
Borrowings under facility | $ 43,300,000 | $ 36,300,000 |
Rialto Segment (Equity Funds Related to Rialto Segment) (Details) - Rialto - USD ($) $ in Thousands |
Nov. 30, 2016 |
Nov. 30, 2015 |
---|---|---|
Schedule of Equity Method Investments [Line Items] | ||
Investment | $ 245,741 | $ 224,869 |
Rialto Real Estate Fund, LP | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Commitments | 700,006 | |
Equity Commitments Called | 700,006 | |
Commitment to Fund by the Company | 75,000 | |
Funds Contributed by the Company | 75,000 | |
Investment | 58,116 | 68,570 |
Rialto Real Estate Fund II, LP | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Commitments | 1,305,000 | |
Equity Commitments Called | 1,305,000 | |
Commitment to Fund by the Company | 100,000 | |
Funds Contributed by the Company | 100,000 | |
Investment | 96,192 | 99,947 |
Rialto Mezzanine Partners Fund, LP | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Commitments | 300,000 | |
Equity Commitments Called | 300,000 | |
Commitment to Fund by the Company | 33,799 | |
Funds Contributed by the Company | 33,799 | |
Investment | 23,643 | 32,344 |
Rialto Capital CMBS Funds | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Commitments | 119,174 | |
Equity Commitments Called | 119,174 | |
Commitment to Fund by the Company | 52,474 | |
Funds Contributed by the Company | 52,474 | |
Investment | 50,519 | 23,233 |
Rialto Real Estate Fund III | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Commitments | 1,289,180 | |
Equity Commitments Called | 128,871 | |
Commitment to Fund by the Company | 100,000 | |
Funds Contributed by the Company | 7,239 | |
Investment | 9,093 | 0 |
Rialto Credit Partnership, LP | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Commitments | 220,000 | |
Equity Commitments Called | 63,150 | |
Commitment to Fund by the Company | 19,999 | |
Funds Contributed by the Company | 5,741 | |
Investment | 5,794 | 0 |
Other investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment | 2,384 | $ 775 |
Bank Portfolios | ||
Schedule of Equity Method Investments [Line Items] | ||
Senior notes and other debts payable | $ 30,300 |
Rialto Segment (Equity in Earnings (Loss) on Investments) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Schedule of Equity Method Investments [Line Items] | |||
Equity in earnings (loss) from unconsolidated entities | $ 55,205 | $ 105,184 | $ 73,376 |
Rialto | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in earnings (loss) from unconsolidated entities | 18,961 | 22,293 | 59,277 |
Rialto | Rialto Real Estate Fund, LP | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in earnings (loss) from unconsolidated entities | 3,205 | 9,676 | 30,612 |
Rialto | Rialto Real Estate Fund II, LP | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in earnings (loss) from unconsolidated entities | 9,054 | 7,440 | 15,929 |
Rialto | Rialto Mezzanine Partners Fund, LP | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in earnings (loss) from unconsolidated entities | 2,944 | 2,194 | 1,913 |
Rialto | Rialto Capital CMBS Funds | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in earnings (loss) from unconsolidated entities | 1,805 | 3,013 | 10,823 |
Rialto | Rialto Real Estate Fund III | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in earnings (loss) from unconsolidated entities | 1,932 | (78) | 0 |
Rialto | Rialto Credit Partnership, LP | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in earnings (loss) from unconsolidated entities | 54 | 0 | 0 |
Rialto | Other investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in earnings (loss) from unconsolidated entities | $ (33) | $ 48 | $ 0 |
Rialto Segment (Condensed Financial Information By Equity Method Investment) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Statement of Operations | |||
Equity in earnings (loss) from unconsolidated entities | $ 55,205 | $ 105,184 | $ 73,376 |
Rialto | |||
Assets: | |||
Cash and cash equivalents | 230,229 | 188,147 | |
Loans receivable | 406,812 | 473,997 | |
Real estate owned | 439,191 | 506,609 | |
Investment securities | 1,379,155 | 1,092,476 | |
Investments in partnerships | 398,535 | 429,979 | |
Other assets | 31,902 | 30,340 | |
Assets | 2,885,824 | 2,721,548 | |
Liabilities and equity: | |||
Accounts payable and other liabilities | 36,131 | 29,462 | |
Notes payable | 535,130 | 374,498 | |
Equity | 2,314,563 | 2,317,588 | |
Liabilities and equity | 2,885,824 | 2,721,548 | |
Statement of Operations | |||
Revenues | 200,346 | 170,921 | 150,452 |
Costs and expenses | 96,343 | 97,162 | 95,629 |
Other income | 49,342 | 144,941 | 479,929 |
Net earnings of unconsolidated entities | 153,345 | 218,700 | 534,752 |
Equity in earnings (loss) from unconsolidated entities | $ 18,961 | $ 22,293 | $ 59,277 |
Lennar Multifamily Segment (Assets and Liabilities Related to the Multifamily Segment) (Details) - USD ($) $ in Thousands |
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
Nov. 30, 2013 |
|||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Assets: | |||||||||||
Cash and cash equivalents | $ 1,329,529 | $ 1,158,445 | $ 1,281,814 | $ 970,505 | |||||||
Total assets | 15,361,781 | [1] | 14,419,509 | [1] | $ 12,923,151 | ||||||
Liabilities: | |||||||||||
Total liabilities | [2] | 8,150,214 | 8,469,437 | ||||||||
Lennar Multifamily | |||||||||||
Assets: | |||||||||||
Cash and cash equivalents | 6,600 | 8,041 | |||||||||
Receivables, net | 58,929 | 33,480 | |||||||||
Land under development | 139,713 | 115,982 | |||||||||
Consolidated inventory not owned | 0 | 5,508 | |||||||||
Investments in unconsolidated entities | 318,559 | 250,876 | |||||||||
Other assets | 2,330 | 1,465 | |||||||||
Total assets | [1] | 526,131 | 415,352 | ||||||||
Liabilities: | |||||||||||
Accounts payable and other liabilities | 117,973 | 62,943 | |||||||||
Liabilities related to consolidated inventory not owned | 0 | 4,007 | |||||||||
Total liabilities | [2] | $ 117,973 | $ 66,950 | ||||||||
|
Lennar Multifamily Segment (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Nov. 30, 2016 |
Dec. 31, 2015 |
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Segment Reporting Information [Line Items] | ||||
Letters of credit outstanding | $ 481,100 | |||
Distributions of capital from unconsolidated entities | 323,190 | $ 218,996 | $ 279,306 | |
Lennar Multifamily | ||||
Segment Reporting Information [Line Items] | ||||
Unconsolidated entities non-recourse debt with completion guarantees | 589,400 | 466,700 | ||
General contractor services | 237,100 | 142,700 | 50,900 | |
General contractor costs | 228,600 | 138,600 | 49,000 | |
Investments in unconsolidated entities | 318,559 | 250,876 | ||
Lennar Multifamily | Variable Interest Entity, Not Primary Beneficiary | Equity Commitments | ||||
Segment Reporting Information [Line Items] | ||||
Remaining equity commitment | 288,200 | 378,300 | ||
Lennar Multifamily | Lennar Multifamily Venture | ||||
Segment Reporting Information [Line Items] | ||||
Additional equity commitments during period | 1,100,000 | $ 1,100,000 | ||
Total equity commitments | 2,200,000 | |||
Equity commitments | 504,000 | |||
Equity commitments called | 656,100 | |||
Equity commitment called | 203,800 | |||
Distributions of capital from unconsolidated entities | 113,700 | |||
Equity commitments called | 931,600 | |||
Funds contributed by the company | 215,800 | |||
Investments in unconsolidated entities | 198,200 | 122,500 | ||
Lennar Multifamily | Unconsolidated Entities | ||||
Segment Reporting Information [Line Items] | ||||
Fees income, net of deferrals | 38,500 | 27,200 | $ 13,500 | |
Lennar Multifamily | Financial Letters Of Credit | ||||
Segment Reporting Information [Line Items] | ||||
Letters of credit outstanding | $ 32,000 | $ 37,900 |
Lennar Multifamily Segment (Condensed Financial Information by Equity Method Investment) (Details) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2016
USD ($)
property
|
Nov. 30, 2015
USD ($)
property
|
Nov. 30, 2014
USD ($)
property
|
|
Statement of Operations | |||
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities | $ 55,205 | $ 105,184 | $ 73,376 |
Lennar Multifamily | |||
Assets: | |||
Cash and cash equivalents | 43,658 | 39,579 | |
Operating properties and equipment | 2,210,627 | 1,398,244 | |
Other assets | 46,015 | 25,925 | |
Assets | 2,300,300 | 1,463,748 | |
Liabilities and equity: | |||
Accounts payable and other liabilities | 196,617 | 179,551 | |
Notes payable | 589,397 | 466,724 | |
Equity | 1,514,286 | 817,473 | |
Liabilities and equity | 2,300,300 | 1,463,748 | |
Statement of Operations | |||
Revenues | 45,287 | 16,309 | 4,855 |
Costs and expenses | 68,976 | 27,190 | 7,435 |
Other income | 191,385 | 43,340 | 35,068 |
Net earnings of unconsolidated entities | 167,696 | 32,459 | 32,488 |
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities | 85,519 | 19,518 | 14,454 |
Gain on disposition of assets | $ 91,000 | $ 22,200 | $ 14,700 |
Number of operating properties sold | property | 7 | 2 | 2 |
Income Taxes (Component Of Income Taxes Benefit (Provision) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Current: | |||
Federal | $ (300,116) | $ (343,635) | $ (261,306) |
State | (19,777) | (52,420) | 3,340 |
Current income tax benefit (expense) | (319,893) | (396,055) | (257,966) |
Deferred: | |||
Federal | (43,775) | 12,872 | (42,847) |
State | (53,710) | (7,233) | (40,278) |
Deferred income tax benefit (expense) | (97,485) | 5,639 | (83,125) |
Income tax benefit (expense) | $ (417,378) | $ (390,416) | $ (341,091) |
Income Taxes (Reconciliation Of Statutory Rate And Effective Tax Rate) (Details) |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Income Tax Disclosure [Abstract] | |||
Statutory rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal income tax benefit | 3.21% | 3.22% | 3.17% |
Domestic production activities deduction | (2.78%) | (3.01%) | (2.81%) |
Tax reserves and interest expense | (0.89%) | 2.64% | 0.59% |
Deferred tax asset valuation reversal | (0.01%) | (0.09%) | (0.28%) |
State net operating loss adjustment | 0.00% | (3.00%) | 0.00% |
Tax credits | (3.46%) | (1.92%) | (0.41%) |
Other | 0.33% | (0.12%) | (0.46%) |
Effective rate | 31.40% | 32.72% | 34.80% |
Income Taxes (Deferred Income Taxes Assets And Liabilities, Carrying Amount) (Details) - USD ($) $ in Thousands |
Nov. 30, 2016 |
Nov. 30, 2015 |
---|---|---|
Deferred tax assets: | ||
Inventory valuation adjustments | $ 56,733 | $ 58,902 |
Reserves and accruals | 198,270 | 197,980 |
Net operating loss carryforwards | 92,362 | 122,573 |
Capitalized expenses | 106,270 | 91,873 |
Other assets | 57,890 | 45,725 |
Total deferred tax assets | 565,673 | 527,460 |
Valuation allowance | (5,773) | (5,945) |
Total deferred tax assets after valuation allowance | 559,900 | 521,515 |
Deferred tax liabilities: | ||
Capitalized expenses | 30,632 | 32,954 |
Deferred income | 226,195 | 104,270 |
Convertible debt basis difference | 0 | 229 |
Other | 25,675 | 32,282 |
Total deferred tax liabilities | 282,502 | 180,790 |
Net deferred tax assets | 277,398 | 340,725 |
Rialto | ||
Deferred tax assets: | ||
Investments in unconsolidated entities | 11,352 | 0 |
Deferred tax liabilities: | ||
Rialto investments in partnerships | 0 | 11,055 |
Net deferred tax assets | 26,547 | 10,518 |
Segments Other than Rialto | ||
Deferred tax assets: | ||
Investments in unconsolidated entities | $ 42,796 | $ 10,407 |
Income Taxes (Net Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands |
Nov. 30, 2016 |
Nov. 30, 2015 |
---|---|---|
Segment Reporting Information [Line Items] | ||
Net deferred tax assets | $ 277,398 | $ 340,725 |
Lennar Homebuilding | ||
Segment Reporting Information [Line Items] | ||
Net deferred tax assets | 249,714 | 327,645 |
Rialto | ||
Segment Reporting Information [Line Items] | ||
Net deferred tax assets | 26,547 | 10,518 |
Lennar Financial Services | ||
Segment Reporting Information [Line Items] | ||
Net deferred tax assets | 5,919 | 2,562 |
Lennar Multifamily | ||
Segment Reporting Information [Line Items] | ||
Net deferred tax assets | $ 0 | |
Net deferred tax liabilities | $ (4,782) |
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Nov. 30, 2016 |
Nov. 30, 2015 |
|
Operating Loss Carryforwards [Line Items] | ||
Deferred tax assets, valuation allowance | $ 5,773 | $ 5,945 |
Reversal of valuation allowance | 200 | 2,100 |
Unrecognized tax benefits that would impact effective tax rate if recognized | 8,000 | |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 1,800 | 1,900 |
Net operating loss carryforward, term | 20 years | |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 90,600 | $ 120,700 |
State | Minimum | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforward, term | 5 years | |
State | Maximum | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforward, term | 20 years |
Income Taxes (Summary Of Changes In Gross Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Gross Unrecognized Tax Benefits [Roll Forward] | |||
Gross unrecognized tax benefits, beginning of year | $ 12,285 | $ 7,257 | $ 10,459 |
Increase due to tax positions taken during prior period | 0 | 5,028 | 0 |
Decreases due to settlements with taxing authorities | 0 | 0 | (3,202) |
Gross unrecognized tax benefits, end of year | $ 12,285 | $ 12,285 | $ 7,257 |
Effective income tax rate before unrecognized tax benefits | 32.30% | 35.13% | |
Effective income tax rate | 31.40% | 32.72% | 34.80% |
Income Taxes (Accrued Interests and Penalties) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Nov. 30, 2016 |
Nov. 30, 2015 |
|
Accrued Interests and Penalties [Roll Forward] | ||
Accrued interest and penalties, beginning of the year | $ 65,145 | $ 31,469 |
Accrual of interest and penalties (primarily related to federal and state audits) | 3,251 | 33,841 |
Reduction of interest and penalties | (22,423) | (165) |
Accrued interest and penalties, end of the year | $ 45,973 | $ 65,145 |
Earnings Per Share (Schedule of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2016 |
Aug. 31, 2016 |
May 31, 2016 |
Feb. 29, 2016 |
Nov. 30, 2015 |
Aug. 31, 2015 |
May 31, 2015 |
Feb. 28, 2015 |
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Numerator: | |||||||||||
Net earnings attributable to Lennar | $ 313,453 | $ 235,842 | $ 218,469 | $ 144,080 | $ 281,603 | $ 223,312 | $ 183,016 | $ 114,963 | $ 911,844 | $ 802,894 | $ 638,916 |
Less: distributed earnings allocated to nonvested shares | 337 | 361 | 414 | ||||||||
Less: undistributed earnings allocated to nonvested shares | 8,852 | 8,371 | 7,379 | ||||||||
Numerator for basic earnings per share | 902,655 | 794,162 | 631,123 | ||||||||
Less: net amount attributable to noncontrolling interests in Rialto's Carried Interest Incentive Plan | 1,028 | 4,120 | 0 | ||||||||
Plus: interest on 3.25% convertible senior notes due 2021 | 5,528 | 7,928 | 7,928 | ||||||||
Plus: undistributed earnings allocated to convertible shares | 8,852 | 8,371 | 7,379 | ||||||||
Less: undistributed earnings reallocated to convertible shares | 8,438 | 7,528 | 6,632 | ||||||||
Numerator for diluted earnings per share | $ 907,569 | $ 798,813 | $ 639,798 | ||||||||
Denominator: | |||||||||||
Denominator for basic earnings per share - weighted average common shares outstanding (in shares) | 218,421 | 205,189 | 202,209 | ||||||||
Effect of dilutive securities: | |||||||||||
Share-based payments (in shares) | 3 | 9 | 8 | ||||||||
Convertible senior notes (in shares) | 12,288 | 25,614 | 26,023 | ||||||||
Denominator for diluted earnings per share - weighted average common shares outstanding (in shares) | 230,712 | 230,812 | 228,240 | ||||||||
Basic earnings per share (in USD per share) | $ 1.37 | $ 1.04 | $ 1.01 | $ 0.68 | $ 1.34 | $ 1.07 | $ 0.89 | $ 0.56 | $ 4.13 | $ 3.87 | $ 3.12 |
Diluted earnings per share (in USD per share) | $ 1.34 | $ 1.01 | $ 0.95 | $ 0.63 | $ 1.21 | $ 0.96 | $ 0.79 | $ 0.50 | $ 3.93 | $ 3.46 | $ 2.80 |
Senior Notes | 3.25% convertible senior notes due 2021 | |||||||||||
Effect of dilutive securities: | |||||||||||
Interest rate | 3.25% | 3.25% |
Earnings Per Share (Narrative) (Details) - shares |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Stock Option Awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Options to purchase outstanding and anti-dilutive shares (in shares) | 0 | 0 | 0 |
Capital Stock (Details) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2016
USD ($)
votes / shares
$ / shares
shares
|
Nov. 30, 2015
USD ($)
$ / shares
shares
|
Nov. 30, 2014
USD ($)
$ / shares
shares
|
|
Class of Stock [Line Items] | |||
Originally authorized shares under the stock repurchase program (in shares) | 20,000,000 | ||
Shares repurchased during period (in shares) | 0 | 0 | 0 |
Remaining authorized shares under the stock repurchase program (in shares) | 6,200,000 | ||
Maximum dividend rate as a percentage of net income in the event of default | 50.00% | ||
Compensation expense | $ | $ 15.7 | $ 13.5 | $ 10.2 |
7.00% Senior Notes due 2018 | Senior Notes | |||
Class of Stock [Line Items] | |||
Interest rate | 7.00% | ||
Treasury Stock | |||
Class of Stock [Line Items] | |||
Increase in treasury stock during period (in shares) | 100,000 | 300,000 | |
Chief Executive Officer | |||
Class of Stock [Line Items] | |||
Voting power | 42.00% | ||
Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized (in shares) | 500,000 | ||
Preferred stock, par value (in usd per share) | $ / shares | $ 10 | ||
Preferred stock, shares issued (in shares) | 0 | 0 | |
Participating Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized (in shares) | 100,000,000 | ||
Preferred stock, par value (in usd per share) | $ / shares | $ 0.10 | ||
Preferred stock, shares issued (in shares) | 0 | 0 | |
Class A Common Stock | |||
Class of Stock [Line Items] | |||
Common stock, per share annual dividend (in usd per share) | $ / shares | $ 0.16 | $ 0.16 | $ 0.16 |
Votes per share | votes / shares | 1 | ||
Class B Common Stock | |||
Class of Stock [Line Items] | |||
Common stock, per share annual dividend (in usd per share) | $ / shares | $ 0.16 | $ 0.16 | $ 0.16 |
Votes per share | votes / shares | 10 |
Share-Based Payments (Schedule of Compensation Expense Related to the Company's Share-Based Awards) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation expense for share-based awards | $ 55,516 | $ 43,873 | $ 40,718 |
Nonvested shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation expense for share-based awards | 55,516 | 43,742 | 40,581 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation expense for share-based awards | $ 0 | $ 131 | $ 137 |
Share-Based Payments (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash flows resulting from tax benefits related to tax deductions in excess of compensation expense | $ 7,039 | $ 113 | $ 7,497 |
Nonvested shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value of nonvested shares granted (in USD per share) | $ 45.10 | $ 49.01 | $ 41.89 |
Unrecognized compensation expense related to unvested share-based awards granted | $ 75,200 | ||
Weighted average remaining contractual life of unrecognized compensation expense related to unvested share-based awards | 1 year 10 months 24 days | ||
Nonvested shares vested (in shares) | 1,120,909 | 1,200,000 | 1,200,000 |
Share-Based Payments (Schedule Of Nonvested Shares Activity) (Details) - Nonvested shares - $ / shares |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Shares | |||
Beginning balance (in shares) | 2,251,553 | ||
Grants (in shares) | 1,228,096 | ||
Vested (in shares) | (1,120,909) | (1,200,000) | (1,200,000) |
Forfeited (in shares) | (75,761) | ||
Ending balance (in shares) | 2,282,979 | 2,251,553 | |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in USD per share) | $ 44.30 | ||
Grants (in USD per share) | 45.10 | $ 49.01 | $ 41.89 |
Vested (in USD per share) | 41.89 | ||
Forfeited (in USD per share) | 45.66 | ||
Ending balance (in USD per share) | $ 45.86 | $ 44.30 |
Financial Instruments and Fair Value Disclosure (Carrying Amounts And Estimated Fair Value Of Financial Instruments) (Details) - USD ($) $ in Thousands |
Nov. 30, 2016 |
Nov. 30, 2015 |
---|---|---|
Level 3 | Rialto | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | $ 111,608 | $ 164,826 |
Investments held-to-maturity | 71,260 | 25,625 |
Level 3 | Rialto | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 113,747 | 169,302 |
Investments held-to-maturity | 69,992 | 25,227 |
Level 3 | Lennar Financial Services | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 30,004 | 30,998 |
Level 3 | Lennar Financial Services | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 31,233 | 29,931 |
Level 2 | Lennar Homebuilding | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | 4,575,977 | 5,025,130 |
Level 2 | Lennar Homebuilding | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | 4,669,643 | 5,936,327 |
Level 2 | Rialto | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | 622,335 | 771,728 |
Level 2 | Rialto | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | 646,366 | 803,013 |
Level 2 | Lennar Financial Services | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments held-to-maturity | 41,991 | 40,174 |
Notes and other debts payable | 1,077,228 | 858,300 |
Level 2 | Lennar Financial Services | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments held-to-maturity | 42,058 | 40,098 |
Notes and other debts payable | $ 1,077,228 | $ 858,300 |
Financial Instruments and Fair Value Disclosure (Fair Value Measured On Recurring Basis) (Details) - USD ($) $ in Thousands |
Nov. 30, 2016 |
Nov. 30, 2015 |
---|---|---|
Lennar Financial Services | ||
Financial Instruments [Line Items] | ||
Investments available-for-sale | $ 53,570 | $ 42,827 |
Lennar Financial Services | Mortgage loan commitments | ||
Financial Instruments [Line Items] | ||
Derivative assets | 7,400 | 13,100 |
Lennar Financial Services | Forward contracts | ||
Financial Instruments [Line Items] | ||
Derivative assets | 26,500 | 500 |
Fair Value, Measurements, Recurring | Rialto | Loans held-for-sale | ||
Financial Instruments [Line Items] | ||
Aggregate principal balance of loans held-for-sale | 127,800 | 314,300 |
Aggregate fair value of loans held-for-sale in excess of principal balance | (900) | 2,000 |
Fair Value, Measurements, Recurring | Rialto | Level 1 | Interest rate swaps and swap futures | ||
Financial Instruments [Line Items] | ||
Derivative liabilities | 6 | 978 |
Fair Value, Measurements, Recurring | Rialto | Level 2 | Credit default swaps | ||
Financial Instruments [Line Items] | ||
Derivative assets | 2,863 | 6,153 |
Fair Value, Measurements, Recurring | Rialto | Level 3 | ||
Financial Instruments [Line Items] | ||
Loans held-for-sale | 126,947 | 316,275 |
Fair Value, Measurements, Recurring | Lennar Financial Services | Loans held-for-sale | ||
Financial Instruments [Line Items] | ||
Aggregate principal balance of loans held-for-sale | 931,000 | 815,000 |
Aggregate fair value of loans held-for-sale in excess of principal balance | 8,400 | 28,200 |
Fair Value, Measurements, Recurring | Lennar Financial Services | Level 1 | ||
Financial Instruments [Line Items] | ||
Investments available-for-sale | 53,570 | 42,827 |
Fair Value, Measurements, Recurring | Lennar Financial Services | Level 2 | ||
Financial Instruments [Line Items] | ||
Loans held-for-sale | 939,405 | 843,252 |
Fair Value, Measurements, Recurring | Lennar Financial Services | Level 2 | Mortgage loan commitments | ||
Financial Instruments [Line Items] | ||
Derivative assets | 7,437 | 13,060 |
Fair Value, Measurements, Recurring | Lennar Financial Services | Level 2 | Forward contracts | ||
Financial Instruments [Line Items] | ||
Derivative assets (liabilities) | 26,467 | 531 |
Fair Value, Measurements, Recurring | Lennar Financial Services | Level 3 | ||
Financial Instruments [Line Items] | ||
Mortgage servicing rights | $ 23,930 | $ 16,770 |
Financial Instruments and Fair Value Disclosure (Narrative) (Details) $ in Billions |
12 Months Ended |
---|---|
Nov. 30, 2016
USD ($)
| |
Lennar Financial Services | Mortgage servicing rights | Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Mortgage prepayment rate | 12.90% |
Discount rate | 12.40% |
Delinquency rate | 7.00% |
Forward Commitments, Mortgage Backed Securities | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Open commitments to sell MBS | $ 1.2 |
Financial Instruments and Fair Value Disclosure (Schedule Of Gains And Losses Of Financial Instruments) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Changes in fair value included in other comprehensive income | $ (295) | $ (65) | $ 130 |
Fair Value, Measurements, Recurring | Lennar Financial Services | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Changes in fair value included in other comprehensive income | (295) | (65) | 130 |
Fair Value, Measurements, Recurring | Loans held-for-sale | Lennar Financial Services | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Changes in fair value included in revenue | (19,865) | (4,137) | 17,124 |
Fair Value, Measurements, Recurring | Mortgage loan commitments | Lennar Financial Services | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Changes in fair value included in revenue | (5,623) | 373 | 5,352 |
Fair Value, Measurements, Recurring | Forward contracts | Lennar Financial Services | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Changes in fair value included in revenue | 25,936 | 8,107 | (9,020) |
Fair Value, Measurements, Recurring | Investments available-for-sale | Lennar Financial Services | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Changes in fair value included in revenue | 53 | 26 | 0 |
Fair Value, Measurements, Recurring | Liabilities | Interest rate swaps and swap futures | Rialto | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Changes in fair value included in revenue | 972 | 398 | (1,346) |
Fair Value, Measurements, Recurring | Assets | Credit default swaps | Rialto | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Changes in fair value included in revenue | $ (2,063) | $ 477 | $ (288) |
Financial Instruments and Fair Value Disclosure (Reconciliation of Beginning and Ending Balance of the Company's Level 3 Recurring Fair Value Measurements (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Nov. 30, 2016 |
Nov. 30, 2015 |
|
Mortgage servicing rights | Lennar Financial Services | ||
Fair Value Assets Measures on Recurring Basis, Unobservable Inputs [Roll Forward] | ||
Beginning of year | $ 16,770 | $ 17,353 |
Purchases/loan originations | 9,195 | 3,290 |
Sales/loan originations sold, including those not settled | 0 | 0 |
Disposals/settlements | (4,063) | (3,577) |
Changes in fair value | 2,028 | (296) |
Interest and principal paydowns | 0 | 0 |
End of year | 23,930 | 16,770 |
Loans held-for-sale | Rialto | ||
Fair Value Assets Measures on Recurring Basis, Unobservable Inputs [Roll Forward] | ||
Beginning of year | 316,275 | 113,596 |
Purchases/loan originations | 1,696,188 | 2,628,019 |
Sales/loan originations sold, including those not settled | (1,881,682) | (2,424,478) |
Disposals/settlements | 0 | 0 |
Changes in fair value | (1,759) | (899) |
Interest and principal paydowns | (2,075) | 37 |
End of year | $ 126,947 | $ 316,275 |
Financial Instruments and Fair Value Disclosure (Fair Value Assets Measured On Nonrecurring Basis) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Rialto | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Impaired loans receivable, total gains (losses) | $ (18,200) | $ (10,400) | $ (57,100) |
REO - held-for-sale upon management periodic valuations, total gains (losses) | (25,153) | (12,192) | |
REO - held-and-used, net upon management periodic valuations, total gains (losses) | (1,819) | (2,624) | |
Fair Value, Measurements, Nonrecurring | Rialto | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Impaired loans receivable, carrying value | 79,581 | 127,319 | 187,218 |
Impaired loans receivable, fair value | 61,352 | 116,956 | 130,105 |
Impaired loans receivable, total gains (losses) | (18,229) | (10,363) | (57,113) |
REO - held-for-sale upon acquisition/transfer, carrying value | 43,267 | 40,833 | 26,750 |
REO - held-for-sale upon acquisition/transfer, fair value | 40,671 | 38,383 | 25,145 |
REO - held-for-sale upon acquisition/transfer, total gains (losses) | (2,596) | (2,450) | (1,605) |
REO - held-for-sale upon management periodic valuations, carrying value | 87,009 | 36,730 | 50,115 |
REO - held-for-sale upon management periodic valuations, fair value | 64,452 | 26,988 | 42,279 |
REO - held-for-sale upon management periodic valuations, total gains (losses) | (22,557) | (9,742) | (7,836) |
REO - held-and-used, net upon acquisition/transfer, carrying value | 9,887 | 18,996 | 60,572 |
REO - held-and-used, net upon acquisition/transfer, fair value | 13,772 | 20,134 | 55,407 |
REO - held-and-used, net upon acquisition/transfer, total gains (losses) | 3,885 | 1,138 | (5,165) |
REO - held-and-used, net upon management periodic valuations, carrying value | 18,821 | 8,066 | 39,728 |
REO - held-and-used, net upon management periodic valuations, fair value | 17,002 | 5,442 | 28,227 |
REO - held-and-used, net upon management periodic valuations, total gains (losses) | (1,819) | (2,624) | (11,501) |
Fair Value, Measurements, Nonrecurring | Lennar Homebuilding | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Finished homes and construction in progress, carrying value | 0 | 59,913 | 8,071 |
Finished homes and construction in progress, fair value | 0 | 47,898 | 4,498 |
Finished homes and construction in progress, total gains and losses | 0 | (12,015) | (3,573) |
Land and land under development, carrying value | 29,418 | 32,500 | 7,013 |
Land and land under development, fair value | 22,925 | 20,033 | 6,143 |
Land and land under development, total gains (losses) | $ (6,493) | $ (12,467) | $ (870) |
Consolidation Of Variable Interest Entities (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Nov. 30, 2016 |
Nov. 30, 2015 |
|
Variable Interest Entity [Line Items] | ||
Consolidated entities, total combined combined assets | $ 122.1 | |
Consolidated entities, total combined combined liabilities | 96.4 | |
Consolidated VIEs assets | 536.3 | $ 652.3 |
Consolidated VIEs liabilities | 126.4 | 84.4 |
Letters of credit outstanding | 481.1 | |
Variable Interest Entity, Not Primary Beneficiary | Lennar Homebuilding | ||
Variable Interest Entity [Line Items] | ||
Obligations related to VIEs | 43.4 | 8.3 |
Variable Interest Entity, Not Primary Beneficiary | Lennar Multifamily | Equity Commitments | ||
Variable Interest Entity [Line Items] | ||
Obligations related to VIEs | 288.2 | 378.3 |
Variable Interest Entity, Not Primary Beneficiary | Lennar Multifamily | Letters of Credit | ||
Variable Interest Entity [Line Items] | ||
Obligations related to VIEs | 19.7 | 30.0 |
Variable Interest Entity, Not Primary Beneficiary Including Third Parties | ||
Variable Interest Entity [Line Items] | ||
Increase in consolidated inventory not owned | 62.2 | |
Non-refundable option deposits and pre-acquisition costs | 85.0 | 89.2 |
Variable Interest Entity, Not Primary Beneficiary Including Third Parties | Letters of Credit | ||
Variable Interest Entity [Line Items] | ||
Letters of credit outstanding | $ 45.1 | $ 70.4 |
Consolidation Of Variable Interest Entities (Investment in Unconsolidated Entities) (Details) - USD ($) $ in Thousands |
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
||||
---|---|---|---|---|---|---|---|
Lennar Homebuilding | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Investments in unconsolidated entities | $ 811,723 | [1] | $ 741,551 | [1] | $ 656,837 | ||
Rialto | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Investments in unconsolidated entities | 245,741 | 224,869 | |||||
Lennar Multifamily | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Investments in unconsolidated entities | $ 318,559 | $ 250,876 | |||||
|
Consolidation Of Variable Interest Entities (Estimated Maximum Exposure To Loss) (Details) - USD ($) $ in Thousands |
Nov. 30, 2016 |
Nov. 30, 2015 |
---|---|---|
Rialto | ||
Variable Interest Entity [Line Items] | ||
Investments held-to-maturity | $ 71,260 | $ 25,625 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investments in Unconsolidated VIEs | 433,128 | 305,690 |
Lennar’s Maximum Exposure to Loss | 785,157 | 723,682 |
Variable Interest Entity, Not Primary Beneficiary | Lennar Homebuilding | ||
Variable Interest Entity [Line Items] | ||
Investments in Unconsolidated VIEs | 120,940 | 102,706 |
Lennar’s Maximum Exposure to Loss | 164,804 | 111,215 |
Obligations related to VIEs | 43,400 | 8,300 |
Variable Interest Entity, Not Primary Beneficiary | Rialto | ||
Variable Interest Entity [Line Items] | ||
Investments in Unconsolidated VIEs | 71,260 | 25,625 |
Lennar’s Maximum Exposure to Loss | 71,260 | 25,625 |
Investments held-to-maturity | 71,300 | 25,600 |
Variable Interest Entity, Not Primary Beneficiary | Lennar Multifamily | ||
Variable Interest Entity [Line Items] | ||
Investments in Unconsolidated VIEs | 240,928 | 177,359 |
Lennar’s Maximum Exposure to Loss | 549,093 | 586,842 |
Variable Interest Entity, Not Primary Beneficiary | Lennar Multifamily | Equity Commitments | ||
Variable Interest Entity [Line Items] | ||
Obligations related to VIEs | 288,200 | 378,300 |
Variable Interest Entity, Not Primary Beneficiary | Lennar Multifamily | Letters of Credit | ||
Variable Interest Entity [Line Items] | ||
Obligations related to VIEs | $ 19,700 | $ 30,000 |
Commitments And Contingent Liabilities (Narrative) (Details) - USD ($) $ in Thousands |
1 Months Ended | 12 Months Ended | 109 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
May 31, 2016 |
Jan. 31, 2015 |
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
Jan. 31, 2015 |
Jun. 29, 2015 |
Dec. 31, 2005 |
|
Other Commitments [Line Items] | ||||||||
Amount paid on contract | $ 20,000 | |||||||
Non-refundable option deposits and pre-acquisition costs | $ 85,000 | |||||||
Rental expense | 63,200 | $ 55,900 | $ 48,900 | |||||
Letters of credit outstanding | 481,100 | |||||||
Costs to Complete Related to Site Improvements | ||||||||
Other Commitments [Line Items] | ||||||||
Costs to complete related to site improvements | $ 488,900 | |||||||
Costs to complete related to site improvements as a percent | 42.00% | |||||||
District of Maryland | ||||||||
Other Commitments [Line Items] | ||||||||
Annual interest amount | $ 13,700 | |||||||
District of Maryland | Real Estate Taxes | ||||||||
Other Commitments [Line Items] | ||||||||
Purchase price in litigation including interest | $ 1,600 | |||||||
District of Maryland | Interest | ||||||||
Other Commitments [Line Items] | ||||||||
Purchase price in litigation including interest | $ 116,000 | |||||||
District of Maryland | Judicial Ruling | ||||||||
Other Commitments [Line Items] | ||||||||
Purchase price in litigation | $ 114,000 | |||||||
Litigation interest rate | 12.00% | 12.00% | 12.00% | |||||
District of Maryland | Pending Litigation | Surety Bond | ||||||||
Other Commitments [Line Items] | ||||||||
Outstanding surety bonds | $ 223,400 | $ 223,400 | ||||||
Original Contract | ||||||||
Other Commitments [Line Items] | ||||||||
Purchase price | $ 200,000 | |||||||
Renegotiated Contract | ||||||||
Other Commitments [Line Items] | ||||||||
Purchase price | 134,000 | |||||||
Lennar Homebuilding | Surety Bond | ||||||||
Other Commitments [Line Items] | ||||||||
Outstanding surety bonds | 1,400,000 | |||||||
Lennar Homebuilding | District of Maryland | Pending Litigation | Surety Bond | ||||||||
Other Commitments [Line Items] | ||||||||
Outstanding surety bonds | $ 223,400 |
Commitments And Contingent Liabilities (Schedule Of Operating Leases) (Details) $ in Thousands |
Nov. 30, 2016
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
2017 | $ 35,443 |
2018 | 33,877 |
2019 | 24,816 |
2020 | 18,767 |
2021 | 14,999 |
Thereafter | $ 16,120 |
Business Acquisition (Narrative) (Details) - WCI Communities, Inc. $ / shares in Units, $ in Millions |
Sep. 22, 2016
USD ($)
$ / shares
|
---|---|
Business Acquisition [Line Items] | |
Anticipated consideration transferred (in USD per share) | $ 23.50 |
Anticipated consideration transferred, cash (in USD per share) | 11.75 |
Anticipated consideration transferred, stock (in USD per share) | $ 11.75 |
Trading days before closing | 10 days |
Termination fee | $ | $ 22.5 |
Supplemental Financial Information (Narrative) (Details) |
12 Months Ended |
---|---|
Nov. 30, 2016
USD ($)
| |
Senior Notes | 12.25% senior notes due 2017 | |
Debt Instrument [Line Items] | |
Interest rate | 12.25% |
Senior Notes | 4.75% senior notes due December 2017 | |
Debt Instrument [Line Items] | |
Interest rate | 4.75% |
Senior Notes | 6.95% senior notes due 2018 | |
Debt Instrument [Line Items] | |
Interest rate | 6.95% |
Senior Notes | 4.125% senior notes due December 2018 | |
Debt Instrument [Line Items] | |
Interest rate | 4.125% |
Senior Notes | 4.500% senior notes due 2019 | |
Debt Instrument [Line Items] | |
Interest rate | 4.50% |
Senior Notes | 4.50% senior notes due 2019 | |
Debt Instrument [Line Items] | |
Interest rate | 4.50% |
Senior Notes | 4.750% senior notes due 2021 | |
Debt Instrument [Line Items] | |
Interest rate | 4.75% |
Senior Notes | 4.750% senior notes due 2022 | |
Debt Instrument [Line Items] | |
Interest rate | 4.75% |
Senior Notes | 4.875% senior notes due December 2023 | |
Debt Instrument [Line Items] | |
Interest rate | 4.875% |
Senior Notes | 4.750% senior notes due 2025 | |
Debt Instrument [Line Items] | |
Interest rate | 4.75% |
Lennar Homebuilding | |
Debt Instrument [Line Items] | |
Interest rate | 7.50% |
Guarantee by subsidiaries | $ 75,000,000 |
Lennar Homebuilding | Senior Notes | 12.25% senior notes due 2017 | |
Debt Instrument [Line Items] | |
Interest rate | 12.25% |
Lennar Homebuilding | Senior Notes | 4.75% senior notes due December 2017 | |
Debt Instrument [Line Items] | |
Interest rate | 4.75% |
Lennar Homebuilding | Senior Notes | 6.95% senior notes due 2018 | |
Debt Instrument [Line Items] | |
Interest rate | 6.95% |
Lennar Homebuilding | Senior Notes | 4.125% senior notes due December 2018 | |
Debt Instrument [Line Items] | |
Interest rate | 4.125% |
Lennar Homebuilding | Senior Notes | 4.500% senior notes due 2019 | |
Debt Instrument [Line Items] | |
Interest rate | 4.50% |
Lennar Homebuilding | Senior Notes | 4.50% senior notes due 2019 | |
Debt Instrument [Line Items] | |
Interest rate | 4.50% |
Lennar Homebuilding | Senior Notes | 4.750% senior notes due 2021 | |
Debt Instrument [Line Items] | |
Interest rate | 4.75% |
Lennar Homebuilding | Senior Notes | 4.750% senior notes due 2022 | |
Debt Instrument [Line Items] | |
Interest rate | 4.75% |
Lennar Homebuilding | Senior Notes | 4.875% senior notes due December 2023 | |
Debt Instrument [Line Items] | |
Interest rate | 4.875% |
Lennar Homebuilding | Senior Notes | 4.750% senior notes due 2025 | |
Debt Instrument [Line Items] | |
Interest rate | 4.75% |
Supplemental Financial Information (Consolidating Balance Sheet) (Details) - USD ($) $ in Thousands |
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
|||||||
---|---|---|---|---|---|---|---|---|---|---|
Assets: | ||||||||||
Total assets | $ 15,361,781 | [1] | $ 14,419,509 | [1] | $ 12,923,151 | |||||
LIABILITIES AND EQUITY | ||||||||||
Total liabilities | [2] | 8,150,214 | 8,469,437 | |||||||
Stockholders’ equity | [2] | 7,026,042 | 5,648,944 | |||||||
Noncontrolling interests | [2] | 185,525 | 301,128 | |||||||
Total equity | 7,211,567 | [2] | 5,950,072 | [2] | 5,251,302 | |||||
Total liabilities and equity | [2] | 15,361,781 | 14,419,509 | |||||||
Lennar Homebuilding | ||||||||||
Assets: | ||||||||||
Cash and cash equivalents, restricted cash and receivables, net | 1,163,091 | 981,451 | ||||||||
Inventories | 9,178,926 | 8,740,596 | ||||||||
Investments in unconsolidated entities | 811,723 | [1] | 741,551 | [1] | $ 656,837 | |||||
Other assets | [1] | 651,028 | 609,222 | |||||||
Investments in subsidiaries | 0 | 0 | ||||||||
Intercompany | 0 | 0 | ||||||||
Total assets | [1] | 11,804,768 | 11,072,820 | |||||||
LIABILITIES AND EQUITY | ||||||||||
Accounts payable and other liabilities | 1,319,995 | 1,375,724 | ||||||||
Liabilities related to consolidated inventory not owned | [2] | 110,006 | 51,431 | |||||||
Senior notes and other debts payable | [2] | 4,575,977 | 5,025,130 | |||||||
Intercompany | 0 | 0 | ||||||||
Total liabilities | [2] | 6,005,978 | 6,452,285 | |||||||
Rialto | ||||||||||
Assets: | ||||||||||
Investments in unconsolidated entities | 245,741 | 224,869 | ||||||||
Other assets | 113,671 | 116,908 | ||||||||
Lennar Financial Services loans held-for-sale | 126,947 | 316,275 | ||||||||
Total assets | [1] | 1,276,210 | 1,505,500 | |||||||
LIABILITIES AND EQUITY | ||||||||||
Total liabilities | [2] | 707,980 | 866,224 | |||||||
Lennar Financial Services | ||||||||||
Assets: | ||||||||||
Other assets | 99,319 | 66,186 | ||||||||
Lennar Financial Services loans held-for-sale | 939,405 | 843,252 | ||||||||
Lennar Financial Services all other assets | 815,267 | 582,585 | ||||||||
Total assets | [1] | 1,754,672 | 1,425,837 | |||||||
LIABILITIES AND EQUITY | ||||||||||
Total liabilities | [2] | 1,318,283 | 1,083,978 | |||||||
Lennar Multifamily | ||||||||||
Assets: | ||||||||||
Investments in unconsolidated entities | 318,559 | 250,876 | ||||||||
Other assets | 2,330 | 1,465 | ||||||||
Total assets | [1] | 526,131 | 415,352 | |||||||
LIABILITIES AND EQUITY | ||||||||||
Accounts payable and other liabilities | 117,973 | 62,943 | ||||||||
Liabilities related to consolidated inventory not owned | 0 | 4,007 | ||||||||
Total liabilities | [2] | 117,973 | 66,950 | |||||||
Reportable Legal Entities | Lennar Corporation | ||||||||||
Assets: | ||||||||||
Total assets | 11,869,042 | 10,975,161 | ||||||||
LIABILITIES AND EQUITY | ||||||||||
Total liabilities | 4,843,000 | 5,326,217 | ||||||||
Stockholders’ equity | 7,026,042 | 5,648,944 | ||||||||
Noncontrolling interests | 0 | 0 | ||||||||
Total equity | 7,026,042 | 5,648,944 | ||||||||
Total liabilities and equity | 11,869,042 | 10,975,161 | ||||||||
Reportable Legal Entities | Lennar Corporation | Lennar Homebuilding | ||||||||||
Assets: | ||||||||||
Cash and cash equivalents, restricted cash and receivables, net | 705,126 | 595,921 | ||||||||
Inventories | 0 | 0 | ||||||||
Investments in unconsolidated entities | 0 | 0 | ||||||||
Other assets | 227,267 | 193,360 | ||||||||
Investments in subsidiaries | 3,918,687 | 3,958,687 | ||||||||
Intercompany | 7,017,962 | 6,227,193 | ||||||||
Total assets | 11,869,042 | 10,975,161 | ||||||||
LIABILITIES AND EQUITY | ||||||||||
Accounts payable and other liabilities | 473,103 | 579,468 | ||||||||
Liabilities related to consolidated inventory not owned | 0 | 0 | ||||||||
Senior notes and other debts payable | 4,369,897 | 4,746,749 | ||||||||
Intercompany | 0 | 0 | ||||||||
Total liabilities | 4,843,000 | 5,326,217 | ||||||||
Reportable Legal Entities | Lennar Corporation | Rialto | ||||||||||
Assets: | ||||||||||
Total assets | 0 | 0 | ||||||||
LIABILITIES AND EQUITY | ||||||||||
Total liabilities | 0 | 0 | ||||||||
Reportable Legal Entities | Lennar Corporation | Lennar Financial Services | ||||||||||
Assets: | ||||||||||
Lennar Financial Services loans held-for-sale | 0 | 0 | ||||||||
Lennar Financial Services all other assets | 0 | 0 | ||||||||
LIABILITIES AND EQUITY | ||||||||||
Total liabilities | 0 | 0 | ||||||||
Reportable Legal Entities | Lennar Corporation | Lennar Multifamily | ||||||||||
Assets: | ||||||||||
Total assets | 0 | 0 | ||||||||
LIABILITIES AND EQUITY | ||||||||||
Total liabilities | 0 | 0 | ||||||||
Reportable Legal Entities | Guarantor Subsidiaries | ||||||||||
Assets: | ||||||||||
Total assets | 10,712,547 | 10,227,036 | ||||||||
LIABILITIES AND EQUITY | ||||||||||
Total liabilities | 7,105,711 | 6,580,261 | ||||||||
Stockholders’ equity | 3,606,836 | 3,646,775 | ||||||||
Noncontrolling interests | 0 | 0 | ||||||||
Total equity | 3,606,836 | 3,646,775 | ||||||||
Total liabilities and equity | 10,712,547 | 10,227,036 | ||||||||
Reportable Legal Entities | Guarantor Subsidiaries | Lennar Homebuilding | ||||||||||
Assets: | ||||||||||
Cash and cash equivalents, restricted cash and receivables, net | 436,090 | 372,146 | ||||||||
Inventories | 8,901,874 | 8,571,769 | ||||||||
Investments in unconsolidated entities | 793,840 | 692,879 | ||||||||
Other assets | 346,865 | 324,050 | ||||||||
Investments in subsidiaries | 130,878 | 176,660 | ||||||||
Intercompany | 0 | 0 | ||||||||
Total assets | 10,609,547 | 10,137,504 | ||||||||
LIABILITIES AND EQUITY | ||||||||||
Accounts payable and other liabilities | 778,249 | 710,460 | ||||||||
Liabilities related to consolidated inventory not owned | 13,582 | 51,431 | ||||||||
Senior notes and other debts payable | 203,572 | 267,531 | ||||||||
Intercompany | 6,071,778 | 5,514,610 | ||||||||
Total liabilities | 7,067,181 | 6,544,032 | ||||||||
Reportable Legal Entities | Guarantor Subsidiaries | Rialto | ||||||||||
Assets: | ||||||||||
Total assets | 0 | 0 | ||||||||
LIABILITIES AND EQUITY | ||||||||||
Total liabilities | 0 | 0 | ||||||||
Reportable Legal Entities | Guarantor Subsidiaries | Lennar Financial Services | ||||||||||
Assets: | ||||||||||
Lennar Financial Services all other assets | 103,000 | 89,532 | ||||||||
LIABILITIES AND EQUITY | ||||||||||
Total liabilities | 38,530 | 36,229 | ||||||||
Reportable Legal Entities | Guarantor Subsidiaries | Lennar Multifamily | ||||||||||
Assets: | ||||||||||
Total assets | 0 | 0 | ||||||||
LIABILITIES AND EQUITY | ||||||||||
Total liabilities | 0 | |||||||||
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||||||||
Assets: | ||||||||||
Total assets | 3,858,538 | 3,579,852 | ||||||||
LIABILITIES AND EQUITY | ||||||||||
Total liabilities | 3,230,284 | 2,790,152 | ||||||||
Stockholders’ equity | 442,729 | 488,572 | ||||||||
Noncontrolling interests | 185,525 | 301,128 | ||||||||
Total equity | 628,254 | 789,700 | ||||||||
Total liabilities and equity | 3,858,538 | 3,579,852 | ||||||||
Reportable Legal Entities | Non-Guarantor Subsidiaries | Lennar Homebuilding | ||||||||||
Assets: | ||||||||||
Cash and cash equivalents, restricted cash and receivables, net | 21,875 | 13,384 | ||||||||
Inventories | 277,052 | 168,827 | ||||||||
Investments in unconsolidated entities | 17,883 | 48,672 | ||||||||
Other assets | 84,224 | 75,108 | ||||||||
Investments in subsidiaries | 0 | 0 | ||||||||
Intercompany | 0 | 0 | ||||||||
Total assets | 401,034 | 305,991 | ||||||||
LIABILITIES AND EQUITY | ||||||||||
Accounts payable and other liabilities | 79,462 | 85,796 | ||||||||
Liabilities related to consolidated inventory not owned | 96,424 | |||||||||
Senior notes and other debts payable | 2,508 | 10,850 | ||||||||
Intercompany | 946,184 | 712,583 | ||||||||
Total liabilities | 1,124,578 | 809,229 | ||||||||
Reportable Legal Entities | Non-Guarantor Subsidiaries | Rialto | ||||||||||
Assets: | ||||||||||
Total assets | 1,276,210 | 1,505,500 | ||||||||
LIABILITIES AND EQUITY | ||||||||||
Total liabilities | 707,980 | 866,224 | ||||||||
Reportable Legal Entities | Non-Guarantor Subsidiaries | Lennar Financial Services | ||||||||||
Assets: | ||||||||||
Lennar Financial Services loans held-for-sale | 939,405 | 843,252 | ||||||||
Lennar Financial Services all other assets | 715,758 | 498,313 | ||||||||
LIABILITIES AND EQUITY | ||||||||||
Total liabilities | 1,279,753 | 1,047,749 | ||||||||
Reportable Legal Entities | Non-Guarantor Subsidiaries | Lennar Multifamily | ||||||||||
Assets: | ||||||||||
Total assets | 526,131 | 426,796 | ||||||||
LIABILITIES AND EQUITY | ||||||||||
Total liabilities | 117,973 | 66,950 | ||||||||
Consolidating Adjustments | ||||||||||
Assets: | ||||||||||
Total assets | (11,078,346) | (10,362,540) | ||||||||
LIABILITIES AND EQUITY | ||||||||||
Total liabilities | (7,028,781) | (6,227,193) | ||||||||
Stockholders’ equity | (4,049,565) | (4,135,347) | ||||||||
Noncontrolling interests | 0 | 0 | ||||||||
Total equity | (4,049,565) | (4,135,347) | ||||||||
Total liabilities and equity | (11,078,346) | (10,362,540) | ||||||||
Consolidating Adjustments | Lennar Homebuilding | ||||||||||
Assets: | ||||||||||
Cash and cash equivalents, restricted cash and receivables, net | 0 | 0 | ||||||||
Inventories | 0 | 0 | ||||||||
Investments in unconsolidated entities | 0 | 0 | ||||||||
Other assets | (7,328) | 16,704 | ||||||||
Investments in subsidiaries | (4,049,565) | (4,135,347) | ||||||||
Intercompany | (7,017,962) | (6,227,193) | ||||||||
Total assets | (11,074,855) | (10,345,836) | ||||||||
LIABILITIES AND EQUITY | ||||||||||
Accounts payable and other liabilities | (10,819) | 0 | ||||||||
Liabilities related to consolidated inventory not owned | 0 | 0 | ||||||||
Senior notes and other debts payable | 0 | 0 | ||||||||
Intercompany | (7,017,962) | (6,227,193) | ||||||||
Total liabilities | (7,028,781) | (6,227,193) | ||||||||
Consolidating Adjustments | Rialto | ||||||||||
Assets: | ||||||||||
Total assets | 0 | 0 | ||||||||
LIABILITIES AND EQUITY | ||||||||||
Total liabilities | 0 | 0 | ||||||||
Consolidating Adjustments | Lennar Financial Services | ||||||||||
Assets: | ||||||||||
Lennar Financial Services all other assets | (3,491) | (5,260) | ||||||||
LIABILITIES AND EQUITY | ||||||||||
Total liabilities | 0 | 0 | ||||||||
Consolidating Adjustments | Lennar Multifamily | ||||||||||
Assets: | ||||||||||
Total assets | 0 | (11,444) | ||||||||
LIABILITIES AND EQUITY | ||||||||||
Total liabilities | $ 0 | $ 0 | ||||||||
|
Supplemental Financial Information (Condensed Consolidating Statement Of Operations and Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2016 |
Aug. 31, 2016 |
May 31, 2016 |
Feb. 29, 2016 |
Nov. 30, 2015 |
Aug. 31, 2015 |
May 31, 2015 |
Feb. 28, 2015 |
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Revenues: | |||||||||||
Total revenues | $ 3,376,626 | $ 2,833,894 | $ 2,745,815 | $ 1,993,664 | $ 2,945,567 | $ 2,491,698 | $ 2,392,604 | $ 1,644,139 | $ 10,949,999 | $ 9,474,008 | $ 7,779,812 |
Costs and Expenses [Abstract] | |||||||||||
Corporate general and administrative expenses | 232,562 | 216,244 | 177,161 | ||||||||
Total costs and expenses | 9,687,636 | 8,387,992 | 6,857,774 | ||||||||
Equity in earnings (loss) from unconsolidated entities | 55,205 | 105,184 | 73,376 | ||||||||
Other interest expense | (4,626) | (12,454) | (36,551) | ||||||||
Earnings (loss) before income taxes | 461,379 | 339,558 | 327,839 | 201,693 | 432,505 | 320,658 | 279,810 | 176,643 | 1,330,469 | 1,209,616 | 969,784 |
Benefit (provision) for income taxes | (417,378) | (390,416) | (341,091) | ||||||||
Equity in earnings from subsidiaries | 0 | 0 | 0 | ||||||||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | 913,091 | 819,200 | 628,693 | ||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | 1,247 | 16,306 | (10,223) | ||||||||
Net earnings attributable to Lennar | $ 313,453 | $ 235,842 | $ 218,469 | $ 144,080 | $ 281,603 | $ 223,312 | $ 183,016 | $ 114,963 | 911,844 | 802,894 | 638,916 |
Other comprehensive income, net of tax: | |||||||||||
Net unrealized gain (loss) on securities available-for-sale | (295) | (65) | 130 | ||||||||
Reclassification adjustments for gains included in net earnings | (53) | (26) | 0 | ||||||||
Other comprehensive income attributable to Lennar | 911,496 | 802,803 | 639,046 | ||||||||
Other comprehensive income (loss) attributable to noncontrolling interests | 1,247 | 16,306 | (10,223) | ||||||||
Lennar Homebuilding | |||||||||||
Revenues: | |||||||||||
Total revenues | 9,741,337 | 8,466,945 | 7,025,130 | ||||||||
Costs and Expenses [Abstract] | |||||||||||
Costs and expenses | 8,399,881 | 7,264,839 | 5,962,029 | ||||||||
Equity in earnings (loss) from unconsolidated entities | (49,275) | 63,373 | (355) | ||||||||
Other income (expense), net | 57,377 | 18,616 | 7,526 | ||||||||
Other interest expense | (245,061) | (220,147) | (201,539) | ||||||||
Lennar Financial Services | |||||||||||
Revenues: | |||||||||||
Total revenues | 687,255 | 620,527 | 454,381 | ||||||||
Costs and Expenses [Abstract] | |||||||||||
Costs and expenses | 523,638 | 492,732 | 374,243 | ||||||||
Rialto | |||||||||||
Revenues: | |||||||||||
Total revenues | 233,966 | 221,923 | 230,521 | ||||||||
Costs and Expenses [Abstract] | |||||||||||
Costs and expenses | 229,769 | 222,875 | 249,114 | ||||||||
Equity in earnings (loss) from unconsolidated entities | 18,961 | 22,293 | 59,277 | ||||||||
Other income (expense), net | (39,850) | 12,254 | 3,395 | ||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | (18,800) | 4,800 | (22,500) | ||||||||
Lennar Multifamily | |||||||||||
Revenues: | |||||||||||
Total revenues | 287,441 | 164,613 | 69,780 | ||||||||
Costs and Expenses [Abstract] | |||||||||||
Costs and expenses | 301,786 | 191,302 | 95,227 | ||||||||
Equity in earnings (loss) from unconsolidated entities | 85,519 | 19,518 | 14,454 | ||||||||
Reportable Legal Entities | Lennar Corporation | |||||||||||
Revenues: | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Costs and Expenses [Abstract] | |||||||||||
Corporate general and administrative expenses | 226,482 | 210,377 | 172,099 | ||||||||
Total costs and expenses | 226,482 | 210,377 | 172,099 | ||||||||
Other interest expense | (5,810) | (5,794) | (5,794) | ||||||||
Earnings (loss) before income taxes | (228,404) | (217,295) | (177,639) | ||||||||
Benefit (provision) for income taxes | 71,719 | 71,099 | 61,818 | ||||||||
Equity in earnings from subsidiaries | 1,068,529 | 949,090 | 754,737 | ||||||||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | 911,844 | 802,894 | 638,916 | ||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net earnings attributable to Lennar | 911,844 | 802,894 | 638,916 | ||||||||
Other comprehensive income, net of tax: | |||||||||||
Net unrealized gain (loss) on securities available-for-sale | 0 | 0 | 0 | ||||||||
Reclassification adjustments for gains included in net earnings | 0 | 0 | |||||||||
Other comprehensive income attributable to Lennar | 911,844 | 802,894 | 638,916 | ||||||||
Other comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Reportable Legal Entities | Lennar Corporation | Lennar Homebuilding | |||||||||||
Revenues: | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Costs and Expenses [Abstract] | |||||||||||
Costs and expenses | 0 | 0 | 0 | ||||||||
Equity in earnings (loss) from unconsolidated entities | 0 | 0 | 0 | ||||||||
Other income (expense), net | 3,888 | (1,124) | 254 | ||||||||
Reportable Legal Entities | Lennar Corporation | Lennar Financial Services | |||||||||||
Revenues: | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Costs and Expenses [Abstract] | |||||||||||
Costs and expenses | 0 | 0 | 0 | ||||||||
Reportable Legal Entities | Lennar Corporation | Rialto | |||||||||||
Revenues: | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Costs and Expenses [Abstract] | |||||||||||
Costs and expenses | 0 | 0 | 0 | ||||||||
Equity in earnings (loss) from unconsolidated entities | 0 | 0 | 0 | ||||||||
Other income (expense), net | 0 | 0 | 0 | ||||||||
Reportable Legal Entities | Lennar Corporation | Lennar Multifamily | |||||||||||
Revenues: | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Costs and Expenses [Abstract] | |||||||||||
Costs and expenses | 0 | 0 | 0 | ||||||||
Equity in earnings (loss) from unconsolidated entities | 0 | 0 | 0 | ||||||||
Reportable Legal Entities | Guarantor Subsidiaries | |||||||||||
Revenues: | |||||||||||
Total revenues | 9,946,859 | 8,661,938 | 7,184,823 | ||||||||
Costs and Expenses [Abstract] | |||||||||||
Corporate general and administrative expenses | 1,019 | 806 | |||||||||
Total costs and expenses | 8,583,060 | 7,414,106 | 6,115,037 | ||||||||
Other interest expense | (4,626) | (12,454) | (36,551) | ||||||||
Earnings (loss) before income taxes | 1,364,113 | 1,289,415 | 1,033,821 | ||||||||
Benefit (provision) for income taxes | (419,596) | (412,301) | (357,277) | ||||||||
Equity in earnings from subsidiaries | 63,278 | 51,956 | 39,691 | ||||||||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | 1,007,795 | 929,070 | 716,235 | ||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net earnings attributable to Lennar | 1,007,795 | 929,070 | 716,235 | ||||||||
Other comprehensive income, net of tax: | |||||||||||
Net unrealized gain (loss) on securities available-for-sale | 0 | 0 | 0 | ||||||||
Reclassification adjustments for gains included in net earnings | 0 | 0 | |||||||||
Other comprehensive income attributable to Lennar | 1,007,795 | 929,070 | 716,235 | ||||||||
Other comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Reportable Legal Entities | Guarantor Subsidiaries | Lennar Homebuilding | |||||||||||
Revenues: | |||||||||||
Total revenues | 9,731,122 | 8,466,945 | 7,023,678 | ||||||||
Costs and Expenses [Abstract] | |||||||||||
Costs and expenses | 8,389,469 | 7,231,495 | 5,961,062 | ||||||||
Equity in earnings (loss) from unconsolidated entities | (49,662) | 49,134 | (4,140) | ||||||||
Other income (expense), net | 54,602 | 4,903 | 4,726 | ||||||||
Reportable Legal Entities | Guarantor Subsidiaries | Lennar Financial Services | |||||||||||
Revenues: | |||||||||||
Total revenues | 215,737 | 194,993 | 161,145 | ||||||||
Costs and Expenses [Abstract] | |||||||||||
Costs and expenses | 192,572 | 181,805 | 153,975 | ||||||||
Reportable Legal Entities | Guarantor Subsidiaries | Rialto | |||||||||||
Revenues: | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Costs and Expenses [Abstract] | |||||||||||
Costs and expenses | 0 | 0 | 0 | ||||||||
Equity in earnings (loss) from unconsolidated entities | 0 | 0 | 0 | ||||||||
Other income (expense), net | 0 | 0 | 0 | ||||||||
Reportable Legal Entities | Guarantor Subsidiaries | Lennar Multifamily | |||||||||||
Revenues: | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Costs and Expenses [Abstract] | |||||||||||
Costs and expenses | 0 | 0 | 0 | ||||||||
Equity in earnings (loss) from unconsolidated entities | 0 | 0 | 0 | ||||||||
Reportable Legal Entities | Non-Guarantor Subsidiaries | |||||||||||
Revenues: | |||||||||||
Total revenues | 1,023,244 | 832,097 | 616,876 | ||||||||
Costs and Expenses [Abstract] | |||||||||||
Corporate general and administrative expenses | 0 | 0 | 0 | ||||||||
Total costs and expenses | 896,238 | 780,565 | 586,947 | ||||||||
Other interest expense | 0 | 0 | 0 | ||||||||
Earnings (loss) before income taxes | 194,760 | 137,496 | 113,602 | ||||||||
Benefit (provision) for income taxes | (69,501) | (49,214) | (45,632) | ||||||||
Equity in earnings from subsidiaries | 0 | 0 | 0 | ||||||||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | 125,259 | 88,282 | 67,970 | ||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | 1,247 | 16,306 | (10,223) | ||||||||
Net earnings attributable to Lennar | 124,012 | 71,976 | 78,193 | ||||||||
Other comprehensive income, net of tax: | |||||||||||
Net unrealized gain (loss) on securities available-for-sale | (295) | (65) | 130 | ||||||||
Reclassification adjustments for gains included in net earnings | (53) | (26) | |||||||||
Other comprehensive income attributable to Lennar | 123,664 | 71,885 | 78,323 | ||||||||
Other comprehensive income (loss) attributable to noncontrolling interests | 1,247 | 16,306 | (10,223) | ||||||||
Reportable Legal Entities | Non-Guarantor Subsidiaries | Lennar Homebuilding | |||||||||||
Revenues: | |||||||||||
Total revenues | 10,215 | 0 | 1,452 | ||||||||
Costs and Expenses [Abstract] | |||||||||||
Costs and expenses | 23,424 | 49,327 | 9,444 | ||||||||
Equity in earnings (loss) from unconsolidated entities | 387 | 14,239 | 3,785 | ||||||||
Other income (expense), net | 2,737 | 17,660 | 2,762 | ||||||||
Reportable Legal Entities | Non-Guarantor Subsidiaries | Lennar Financial Services | |||||||||||
Revenues: | |||||||||||
Total revenues | 491,536 | 445,535 | 315,123 | ||||||||
Costs and Expenses [Abstract] | |||||||||||
Costs and expenses | 340,463 | 316,003 | 233,162 | ||||||||
Reportable Legal Entities | Non-Guarantor Subsidiaries | Rialto | |||||||||||
Revenues: | |||||||||||
Total revenues | 233,966 | 221,923 | 230,521 | ||||||||
Costs and Expenses [Abstract] | |||||||||||
Costs and expenses | 230,565 | 223,933 | 249,114 | ||||||||
Equity in earnings (loss) from unconsolidated entities | 18,961 | 22,293 | 59,277 | ||||||||
Other income (expense), net | (39,850) | 12,254 | 3,395 | ||||||||
Reportable Legal Entities | Non-Guarantor Subsidiaries | Lennar Multifamily | |||||||||||
Revenues: | |||||||||||
Total revenues | 287,527 | 164,639 | 69,780 | ||||||||
Costs and Expenses [Abstract] | |||||||||||
Costs and expenses | 301,786 | 191,302 | 95,227 | ||||||||
Equity in earnings (loss) from unconsolidated entities | 85,519 | 19,518 | 14,454 | ||||||||
Consolidating Adjustments | |||||||||||
Revenues: | |||||||||||
Total revenues | (20,104) | (20,027) | (21,887) | ||||||||
Costs and Expenses [Abstract] | |||||||||||
Corporate general and administrative expenses | 5,061 | 5,061 | 5,062 | ||||||||
Total costs and expenses | (18,144) | (17,056) | (16,309) | ||||||||
Other interest expense | 5,810 | 5,794 | 5,794 | ||||||||
Earnings (loss) before income taxes | 0 | 0 | 0 | ||||||||
Benefit (provision) for income taxes | 0 | 0 | 0 | ||||||||
Equity in earnings from subsidiaries | (1,131,807) | (1,001,046) | (794,428) | ||||||||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | (1,131,807) | (1,001,046) | (794,428) | ||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net earnings attributable to Lennar | (1,131,807) | (1,001,046) | (794,428) | ||||||||
Other comprehensive income, net of tax: | |||||||||||
Net unrealized gain (loss) on securities available-for-sale | 0 | 0 | 0 | ||||||||
Reclassification adjustments for gains included in net earnings | 0 | 0 | |||||||||
Other comprehensive income attributable to Lennar | (1,131,807) | (1,001,046) | (794,428) | ||||||||
Other comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Consolidating Adjustments | Lennar Homebuilding | |||||||||||
Revenues: | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Costs and Expenses [Abstract] | |||||||||||
Costs and expenses | (13,012) | (15,983) | (8,477) | ||||||||
Equity in earnings (loss) from unconsolidated entities | 0 | 0 | 0 | ||||||||
Other income (expense), net | (3,850) | (2,823) | (216) | ||||||||
Consolidating Adjustments | Lennar Financial Services | |||||||||||
Revenues: | |||||||||||
Total revenues | (20,018) | (20,001) | (21,887) | ||||||||
Costs and Expenses [Abstract] | |||||||||||
Costs and expenses | (9,397) | (5,076) | (12,894) | ||||||||
Consolidating Adjustments | Rialto | |||||||||||
Revenues: | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Costs and Expenses [Abstract] | |||||||||||
Costs and expenses | (796) | (1,058) | 0 | ||||||||
Equity in earnings (loss) from unconsolidated entities | 0 | 0 | 0 | ||||||||
Other income (expense), net | 0 | 0 | 0 | ||||||||
Consolidating Adjustments | Lennar Multifamily | |||||||||||
Revenues: | |||||||||||
Total revenues | (86) | (26) | 0 | ||||||||
Costs and Expenses [Abstract] | |||||||||||
Costs and expenses | 0 | 0 | 0 | ||||||||
Equity in earnings (loss) from unconsolidated entities | $ 0 | $ 0 | $ 0 |
Supplemental Financial Information (Condensed Consolidating Statement Of Cash Flows) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Cash flows from operating activities: | |||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | $ 913,091 | $ 819,200 | $ 628,693 |
Distributions of earnings from guarantor and non-guarantor subsidiaries | 0 | 0 | 0 |
Other adjustments to reconcile net earnings (including net earnings attributable to noncontrolling interests) to net cash provided by (used in) operating activities | (405,287) | (1,238,846) | (1,417,181) |
Net cash provided by (used in) operating activities | 507,804 | (419,646) | (788,488) |
Cash flows from investing activities: | |||
Proceeds from sale of operating properties | 25,288 | 73,732 | 43,937 |
(Investments in and contributions to) and distributions of capital from unconsolidated entities, net | (102,571) | (95,941) | 119,523 |
Proceeds from sales of real estate owned | 97,871 | 155,295 | 269,698 |
Receipts of principal payments on loans receivable and other | 84,433 | 28,389 | 24,019 |
Originations of loans receivable | (56,507) | (78,703) | |
Purchases of commercial mortgage-backed securities bond | (42,436) | (13,973) | (8,705) |
Other | (91,915) | (181,165) | (18,818) |
Distributions of capital from guarantor and non-guarantor subsidiaries | 0 | 0 | 0 |
Intercompany | 0 | 0 | 0 |
Net cash (used in) provided by investing activities | (85,837) | (98,393) | 438,359 |
Cash flows from financing activities: | |||
Net borrowings under warehouse facilities | 107,465 | 366,290 | 389,535 |
Proceeds from senior notes and debt issuance costs | 494,284 | 1,134,840 | 1,039,480 |
Redemption of senior notes | (250,000) | (500,000) | (250,000) |
Conversions and exchanges on convertible senior notes | (234,028) | (212,107) | 0 |
Net payments on other borrowings | (173,805) | (156,490) | (265,289) |
Exercise of land option contracts from an unconsolidated land investment venture | 0 | 0 | (1,540) |
Net payments related to noncontrolling interests | (127,057) | (132,078) | (142,766) |
Excess tax benefits from share-based awards | 7,039 | 113 | 7,497 |
Common stock: | |||
Issuances | 19,471 | 9,405 | 13,599 |
Repurchases | (19,902) | (23,188) | (20,424) |
Dividends | (35,324) | (33,192) | (32,775) |
Intercompany | 0 | 0 | 0 |
Net cash (used in) provided by financing activities | (250,883) | 394,670 | 661,438 |
Net increase (decrease) in cash and cash equivalents | 171,084 | (123,369) | 311,309 |
Cash and cash equivalents at beginning of year | 1,158,445 | 1,281,814 | 970,505 |
Cash and cash equivalents at end of year | 1,329,529 | 1,158,445 | 1,281,814 |
Rialto | |||
Cash flows from financing activities: | |||
Principal payments on Rialto notes payable including structured notes | (39,026) | (58,923) | (75,879) |
Common stock: | |||
Cash and cash equivalents at beginning of year | 150,219 | ||
Cash and cash equivalents at end of year | 148,827 | 150,219 | |
Reportable Legal Entities | Lennar Corporation | |||
Cash flows from operating activities: | |||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | 911,844 | 802,894 | 638,916 |
Distributions of earnings from guarantor and non-guarantor subsidiaries | 1,068,529 | 949,090 | 754,737 |
Other adjustments to reconcile net earnings (including net earnings attributable to noncontrolling interests) to net cash provided by (used in) operating activities | (1,083,418) | (782,575) | (583,119) |
Net cash provided by (used in) operating activities | 896,955 | 969,409 | 810,534 |
Cash flows from investing activities: | |||
Proceeds from sale of operating properties | 0 | 0 | 0 |
(Investments in and contributions to) and distributions of capital from unconsolidated entities, net | 0 | 0 | 0 |
Proceeds from sales of real estate owned | 0 | 0 | 0 |
Receipts of principal payments on loans receivable and other | 0 | 0 | 0 |
Originations of loans receivable | 0 | 0 | |
Purchases of commercial mortgage-backed securities bond | 0 | ||
Other | (11,709) | (5,988) | (2,347) |
Distributions of capital from guarantor and non-guarantor subsidiaries | 40,000 | 115,000 | 232,200 |
Intercompany | (787,185) | (1,514,775) | (1,515,367) |
Net cash (used in) provided by investing activities | (758,894) | (1,405,763) | (1,285,514) |
Cash flows from financing activities: | |||
Net borrowings under warehouse facilities | 0 | 0 | 0 |
Proceeds from senior notes and debt issuance costs | 495,974 | 1,137,826 | 843,300 |
Redemption of senior notes | (250,000) | (500,000) | (250,000) |
Conversions and exchanges on convertible senior notes | (234,028) | (212,107) | |
Net payments on other borrowings | 0 | 0 | |
Net payments related to noncontrolling interests | 0 | 0 | 0 |
Excess tax benefits from share-based awards | 7,039 | 113 | 7,497 |
Common stock: | |||
Issuances | 19,471 | 9,405 | 13,599 |
Repurchases | (19,902) | (23,188) | (20,424) |
Dividends | (35,324) | (33,192) | (32,775) |
Intercompany | 0 | 0 | 0 |
Net cash (used in) provided by financing activities | (16,770) | 378,857 | 561,197 |
Net increase (decrease) in cash and cash equivalents | 121,291 | (57,497) | 86,217 |
Cash and cash equivalents at beginning of year | 575,821 | 633,318 | 547,101 |
Cash and cash equivalents at end of year | 697,112 | 575,821 | 633,318 |
Reportable Legal Entities | Lennar Corporation | Rialto | |||
Cash flows from financing activities: | |||
Principal payments on Rialto notes payable including structured notes | 0 | 0 | 0 |
Reportable Legal Entities | Guarantor Subsidiaries | |||
Cash flows from operating activities: | |||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | 1,007,795 | 929,070 | 716,235 |
Distributions of earnings from guarantor and non-guarantor subsidiaries | 63,278 | 51,956 | 39,691 |
Other adjustments to reconcile net earnings (including net earnings attributable to noncontrolling interests) to net cash provided by (used in) operating activities | (231,877) | (861,284) | (1,108,430) |
Net cash provided by (used in) operating activities | 839,196 | 119,742 | (352,504) |
Cash flows from investing activities: | |||
Proceeds from sale of operating properties | 25,288 | 73,732 | 43,937 |
(Investments in and contributions to) and distributions of capital from unconsolidated entities, net | (139,533) | (90,267) | 63,990 |
Proceeds from sales of real estate owned | 0 | 0 | 0 |
Receipts of principal payments on loans receivable and other | 0 | 0 | 0 |
Originations of loans receivable | 0 | 0 | |
Purchases of commercial mortgage-backed securities bond | 0 | ||
Other | (56,627) | (96,180) | 19,027 |
Distributions of capital from guarantor and non-guarantor subsidiaries | 34,000 | 115,050 | 65,200 |
Intercompany | 0 | 0 | 0 |
Net cash (used in) provided by investing activities | (136,872) | 2,335 | 192,154 |
Cash flows from financing activities: | |||
Net borrowings under warehouse facilities | 116 | 0 | 0 |
Proceeds from senior notes and debt issuance costs | 0 | 0 | 0 |
Redemption of senior notes | 0 | 0 | 0 |
Conversions and exchanges on convertible senior notes | 0 | 0 | |
Net payments on other borrowings | (165,463) | (156,490) | (241,539) |
Exercise of land option contracts from an unconsolidated land investment venture | (1,540) | ||
Net payments related to noncontrolling interests | 0 | 0 | 0 |
Excess tax benefits from share-based awards | 0 | 0 | 0 |
Common stock: | |||
Issuances | 0 | 0 | 0 |
Repurchases | 0 | 0 | 0 |
Dividends | (1,047,795) | (1,044,070) | (781,435) |
Intercompany | 551,840 | 1,161,617 | 1,285,786 |
Net cash (used in) provided by financing activities | (661,302) | (38,943) | 261,272 |
Net increase (decrease) in cash and cash equivalents | 41,022 | 83,134 | 100,922 |
Cash and cash equivalents at beginning of year | 336,048 | 252,914 | 151,992 |
Cash and cash equivalents at end of year | 377,070 | 336,048 | 252,914 |
Reportable Legal Entities | Guarantor Subsidiaries | Rialto | |||
Cash flows from financing activities: | |||
Principal payments on Rialto notes payable including structured notes | 0 | 0 | 0 |
Reportable Legal Entities | Non-Guarantor Subsidiaries | |||
Cash flows from operating activities: | |||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | 125,259 | 88,282 | 67,970 |
Distributions of earnings from guarantor and non-guarantor subsidiaries | 0 | 0 | 0 |
Other adjustments to reconcile net earnings (including net earnings attributable to noncontrolling interests) to net cash provided by (used in) operating activities | (221,799) | (596,033) | (520,060) |
Net cash provided by (used in) operating activities | (96,540) | (507,751) | (452,090) |
Cash flows from investing activities: | |||
Proceeds from sale of operating properties | 0 | 0 | 0 |
(Investments in and contributions to) and distributions of capital from unconsolidated entities, net | 36,962 | (5,674) | 55,533 |
Proceeds from sales of real estate owned | 97,871 | 155,295 | 269,698 |
Receipts of principal payments on loans receivable and other | 84,433 | 28,389 | 24,019 |
Originations of loans receivable | (56,507) | (78,703) | |
Purchases of commercial mortgage-backed securities bond | (42,436) | ||
Other | (23,579) | (78,997) | (35,498) |
Distributions of capital from guarantor and non-guarantor subsidiaries | 0 | 0 | 0 |
Intercompany | 0 | 0 | 0 |
Net cash (used in) provided by investing activities | 96,744 | 20,310 | 313,752 |
Cash flows from financing activities: | |||
Net borrowings under warehouse facilities | 107,349 | 366,290 | 389,535 |
Proceeds from senior notes and debt issuance costs | (1,690) | (2,986) | 196,180 |
Redemption of senior notes | 0 | 0 | 0 |
Conversions and exchanges on convertible senior notes | 0 | ||
Net payments on other borrowings | (8,342) | (23,750) | |
Net payments related to noncontrolling interests | (127,057) | (132,078) | (142,766) |
Excess tax benefits from share-based awards | 0 | 0 | 0 |
Common stock: | |||
Issuances | 0 | 0 | 0 |
Repurchases | 0 | 0 | 0 |
Dividends | (158,012) | (187,026) | (310,393) |
Intercompany | 235,345 | 353,158 | 229,581 |
Net cash (used in) provided by financing activities | 8,567 | 338,435 | 262,508 |
Net increase (decrease) in cash and cash equivalents | 8,771 | (149,006) | 124,170 |
Cash and cash equivalents at beginning of year | 246,576 | 395,582 | 271,412 |
Cash and cash equivalents at end of year | 255,347 | 246,576 | 395,582 |
Reportable Legal Entities | Non-Guarantor Subsidiaries | Rialto | |||
Cash flows from financing activities: | |||
Principal payments on Rialto notes payable including structured notes | (39,026) | (58,923) | (75,879) |
Consolidating Adjustments | |||
Cash flows from operating activities: | |||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | (1,131,807) | (1,001,046) | (794,428) |
Distributions of earnings from guarantor and non-guarantor subsidiaries | (1,131,807) | (1,001,046) | (794,428) |
Other adjustments to reconcile net earnings (including net earnings attributable to noncontrolling interests) to net cash provided by (used in) operating activities | 1,131,807 | 1,001,046 | 794,428 |
Net cash provided by (used in) operating activities | (1,131,807) | (1,001,046) | (794,428) |
Cash flows from investing activities: | |||
Proceeds from sale of operating properties | 0 | 0 | 0 |
(Investments in and contributions to) and distributions of capital from unconsolidated entities, net | 0 | 0 | 0 |
Proceeds from sales of real estate owned | 0 | 0 | 0 |
Receipts of principal payments on loans receivable and other | 0 | 0 | 0 |
Originations of loans receivable | 0 | 0 | |
Purchases of commercial mortgage-backed securities bond | 0 | ||
Other | 0 | 0 | 0 |
Distributions of capital from guarantor and non-guarantor subsidiaries | (74,000) | (230,050) | (297,400) |
Intercompany | 787,185 | 1,514,775 | 1,515,367 |
Net cash (used in) provided by investing activities | 713,185 | 1,284,725 | 1,217,967 |
Cash flows from financing activities: | |||
Net borrowings under warehouse facilities | 0 | 0 | 0 |
Proceeds from senior notes and debt issuance costs | 0 | 0 | 0 |
Redemption of senior notes | 0 | 0 | 0 |
Conversions and exchanges on convertible senior notes | 0 | 0 | |
Net payments on other borrowings | 0 | 0 | 0 |
Exercise of land option contracts from an unconsolidated land investment venture | 0 | ||
Net payments related to noncontrolling interests | 0 | 0 | |
Excess tax benefits from share-based awards | 0 | 0 | 0 |
Common stock: | |||
Issuances | 0 | 0 | 0 |
Repurchases | 0 | 0 | 0 |
Dividends | 1,205,807 | 1,231,096 | 1,091,828 |
Intercompany | (787,185) | (1,514,775) | (1,515,367) |
Net cash (used in) provided by financing activities | 418,622 | (283,679) | (423,539) |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of year | 0 | 0 | 0 |
Cash and cash equivalents at end of year | 0 | 0 | 0 |
Consolidating Adjustments | Rialto | |||
Cash flows from financing activities: | |||
Principal payments on Rialto notes payable including structured notes | $ 0 | $ 0 | $ 0 |
Quarterly Data (unaudited) (Schedule Of Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2016 |
Aug. 31, 2016 |
May 31, 2016 |
Feb. 29, 2016 |
Nov. 30, 2015 |
Aug. 31, 2015 |
May 31, 2015 |
Feb. 28, 2015 |
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 3,376,626 | $ 2,833,894 | $ 2,745,815 | $ 1,993,664 | $ 2,945,567 | $ 2,491,698 | $ 2,392,604 | $ 1,644,139 | $ 10,949,999 | $ 9,474,008 | $ 7,779,812 |
Gross profit from sales of homes | 683,519 | 551,676 | 561,523 | 398,946 | 651,066 | 531,362 | 495,854 | 324,772 | |||
Earnings before income taxes | 461,379 | 339,558 | 327,839 | 201,693 | 432,505 | 320,658 | 279,810 | 176,643 | 1,330,469 | 1,209,616 | 969,784 |
Net earnings attributable to Lennar | $ 313,453 | $ 235,842 | $ 218,469 | $ 144,080 | $ 281,603 | $ 223,312 | $ 183,016 | $ 114,963 | $ 911,844 | $ 802,894 | $ 638,916 |
Earnings per share: | |||||||||||
Basic (in USD per share) | $ 1.37 | $ 1.04 | $ 1.01 | $ 0.68 | $ 1.34 | $ 1.07 | $ 0.89 | $ 0.56 | $ 4.13 | $ 3.87 | $ 3.12 |
Diluted (in USD per share) | $ 1.34 | $ 1.01 | $ 0.95 | $ 0.63 | $ 1.21 | $ 0.96 | $ 0.79 | $ 0.50 | $ 3.93 | $ 3.46 | $ 2.80 |
Schedule II-Valuation And Qualifying Accounts (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Nov. 30, 2016 |
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Allowances for doubtful accounts and notes and other receivables | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | $ 768 | $ 3,257 | $ 3,067 |
Additions, Charged to costs and expenses | 125 | 370 | 207 |
Additions, Charged (credited) to other accounts | (88) | (2,528) | 323 |
Deductions | (477) | (331) | (340) |
Ending balance | 328 | 768 | 3,257 |
Allowance for loan losses and loans receivable | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | 39,486 | 62,104 | 24,687 |
Additions, Charged to costs and expenses | 18,818 | 11,465 | 57,207 |
Additions, Charged (credited) to other accounts | 0 | 0 | 0 |
Deductions | (24,729) | (34,083) | (19,790) |
Ending balance | 33,575 | 39,486 | 62,104 |
Allowance against net deferred tax assets | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | 5,945 | 8,029 | 12,706 |
Additions, Charged to costs and expenses | 0 | 0 | 0 |
Additions, Charged (credited) to other accounts | 0 | 0 | 0 |
Deductions | (172) | (2,084) | (4,677) |
Ending balance | $ 5,773 | $ 5,945 | $ 8,029 |
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