Supplemental Financial Information

3 Months Ended

Feb. 28, 2017

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, 6.875% senior notes due 2021, 4.125% senior notes due 2022, 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 February 28, 2017 they were guaranteeing Lennar Corporation's letter of credit facilities and its Credit Facility, disclosed in Note 12. In addition, effective February 10, 2017, in connection with the acquisition of WCI, the Company agreed to become a co-issuer of the 6.875% senior notes due 2021 that were issued by WCI and guaranteed by several of its wholly-owned subsidiaries. Because WCI and those subsidiaries are in effect guarantors of the Company’s obligations as a co-issuer of the 6.875% senior notes due 2021, most of those subsidiaries must also guarantee the Company’s obligations with regard to its senior notes. As such, WCI and its subsidiaries are included in the subsidiaries that are referred to as “Guarantor Subsidiaries” in the following tables. The separate assets and liabilities of WCI and its subsidiaries are set forth in Note 2. The guarantees are full, unconditional and joint and several and the guarantor subsidiaries are 100% directly or indirectly owned by Lennar Corporation. A subsidiary's guarantee will be suspended at any time when it is not directly or indirectly guaranteeing at least $75 million principal amount of debt of Lennar Corporation, and a subsidiary will be released from its guarantee and any other obligations it may have regarding the senior notes if all or substantially all its assets, or all of its capital stock, are sold or otherwise disposed of.

For purposes of the condensed consolidating statement of cash flows included in the following supplemental financial information, the Company's accounting policy is to treat cash received by Lennar Corporation ("the Parent") from its subsidiaries, to the extent of net earnings from such subsidiaries as a dividend and accordingly a return on investment within cash flows from operating activities. Distributions of capital received by the Parent from its subsidiaries are reflected as cash flows from investing activities. The cash outflows associated with the return on investment dividends and distributions of capital received by the Parent are reflected by the Guarantor and Non-Guarantor subsidiaries in the Dividends line item within cash flows from financing activities. All other cash flows between the Parent and its subsidiaries represent the settlement of receivables and payables between such entities in conjunction with the Parent's centralized cash management arrangement with its subsidiaries, which operates with the characteristics of a revolving credit facility, and are accordingly reflected net in the Intercompany line item within cash flows from investing activities for the Parent and net in the Intercompany line item within cash flows from financing activities for the Guarantor and Non-Guarantor subsidiaries.Supplemental information for the subsidiaries that were guarantor subsidiaries at February 28, 2017 was as follows:

Condensed Consolidating Balance Sheet

February 28, 2017

(In thousands)	Lennar Corporation		Guarantor Subsidiaries	Non-Guarantor Subsidiaries	Consolidating Adjustments		Total
ASSETS
Lennar Homebuilding:
Cash and cash equivalents, restricted cash and receivables, net	$	406,180	311,979	16,806	—		734,965
Inventories	—		10,193,840	274,836	—		10,468,676
Investments in unconsolidated entities	—		893,275	16,809	—		910,084
Goodwill	—		143,298	—	—		143,298
Other assets	202,591		616,075	94,391	(10,710	)	902,347
Investments in subsidiaries	4,531,309		101,867	—	(4,633,176	)	—
Intercompany	7,648,203		—	—	(7,648,203	)	—
	12,788,283		12,260,334	402,842	(12,292,089	)	13,159,370
Rialto	—		—	1,228,874	—		1,228,874
Lennar Financial Services	—		128,022	1,106,866	(3,180	)	1,231,708
Lennar Multifamily	—		—	610,161	—		610,161
Total assets	$	12,788,283	12,388,356	3,348,743	(12,295,269	)	16,230,113
LIABILITIES AND EQUITY
Lennar Homebuilding:
Accounts payable and other liabilities	$	464,370	935,311	82,777	(13,890	)	1,468,568
Liabilities related to consolidated inventory not owned	—		139,945	13,500	—		153,445
Senior notes and other debts payable	5,217,860		551,918	8,528	—		5,778,306
Intercompany	—		6,515,937	1,132,266	(7,648,203	)	—
	5,682,230		8,143,111	1,237,071	(7,662,093	)	7,400,319
Rialto	—		—	680,120	—		680,120
Lennar Financial Services	—		36,707	751,632	—		788,339
Lennar Multifamily	—		—	105,560	—		105,560
Total liabilities	5,682,230		8,179,818	2,774,383	(7,662,093	)	8,974,338
Stockholders’ equity	7,106,053		4,208,538	424,638	(4,633,176	)	7,106,053
Noncontrolling interests	—		—	149,722	—		149,722
Total equity	7,106,053		4,208,538	574,360	(4,633,176	)	7,255,775
Total liabilities and equity	$	12,788,283	12,388,356	3,348,743	(12,295,269	)	16,230,113

Condensed 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	$	705,126	436,090	21,875	—		1,163,091
Inventories	—		8,901,874	277,052	—		9,178,926
Investments in unconsolidated entities	—		793,840	17,883	—		811,723
Other assets	227,267		346,865	84,224	(7,328	)	651,028
Investments in subsidiaries	3,918,687		130,878	—	(4,049,565	)	—
Intercompany	7,017,962		—	—	(7,017,962	)	—
	11,869,042		10,609,547	401,034	(11,074,855	)	11,804,768
Rialto	—		—	1,276,210	—		1,276,210
Lennar Financial Services loans held-for-sale	—		—	939,405	—		939,405
Lennar Financial Services all other assets	—		103,000	715,758	(3,491	)	815,267
Lennar Multifamily	—		—	526,131	—		526,131
Total assets	$	11,869,042	10,712,547	3,858,538	(11,078,346	)	15,361,781
LIABILITIES AND EQUITY
Lennar Homebuilding:
Accounts payable and other liabilities	$	473,103	778,249	79,462	(10,819	)	1,319,995
Liabilities related to consolidated inventory not owned	—		13,582	96,424	—		110,006
Senior notes and other debts payable	4,369,897		203,572	2,508	—		4,575,977
Intercompany	—		6,071,778	946,184	(7,017,962	)	—
	4,843,000		7,067,181	1,124,578	(7,028,781	)	6,005,978
Rialto	—		—	707,980	—		707,980
Lennar Financial Services	—		38,530	1,279,753	—		1,318,283
Lennar Multifamily	—		—	117,973	—		117,973
Total liabilities	4,843,000		7,105,711	3,230,284	(7,028,781	)	8,150,214
Stockholders’ equity	7,026,042		3,606,836	442,729	(4,049,565	)	7,026,042
Noncontrolling interests	—		—	185,525	—		185,525
Total equity	7,026,042		3,606,836	628,254	(4,049,565	)	7,211,567
Total liabilities and equity	$	11,869,042	10,712,547	3,858,538	(11,078,346	)	15,361,781

Condensed Consolidating Statement of Operations and Comprehensive Income

Three Months Ended February 28, 2017

(In thousands)	Lennar Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments		Total
Revenues:
Lennar Homebuilding	$	—		2,012,882		5,812		—		2,018,694
Lennar Financial Services	—			50,509		102,532		(4,998	)	148,043
Rialto	—			—		82,006		—		82,006
Lennar Multifamily	—			—		88,717		(32	)	88,685
Total revenues	—			2,063,391		279,067		(5,030	)	2,337,428
Cost and expenses:
Lennar Homebuilding	—			1,794,010		7,868		(317	)	1,801,561
Lennar Financial Services	—			49,056		83,988		(5,665	)	127,379
Rialto	—			—		66,965		(52	)	66,913
Lennar Multifamily	—			—		92,649		—		92,649
Corporate general and administrative	59,179			255		—		1,265		60,699
Total costs and expenses	59,179			1,843,321		251,470		(4,769	)	2,149,201
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities	—			(11,560	)	26		—		(11,534	)
Lennar Homebuilding other income (expense), net	(251		)	4,773		956		261		5,739
Lennar Homebuilding loss due to litigation accrual	—			(140,000	)	—		—		(140,000	)
Rialto equity in earnings from unconsolidated entities	—			—		722		—		722
Rialto other expense, net	—			—		(16,658	)	—		(16,658	)
Lennar Multifamily equity in earnings from unconsolidated entities	—			—		23,147		—		23,147
Earnings (loss) before income taxes	(59,430		)	73,283		35,790		—		49,643
Benefit (provision) for income taxes	20,444			(23,344	)	(17,069	)	—		(19,969	)
Equity in earnings from subsidiaries	77,066			6,893		—		(83,959	)	—
Net earnings (including net loss attributable to noncontrolling interests)	38,080			56,832		18,721		(83,959	)	29,674
Less: Net loss attributable to noncontrolling interests	—			—		(8,406	)	—		(8,406	)
Net earnings attributable to Lennar	$	38,080		56,832		27,127		(83,959	)	38,080
Other comprehensive income, net of tax:
Net unrealized gain on securities available-for-sale	$	—		—		972		—		972
Other comprehensive income attributable to Lennar	$	38,080		56,832		28,099		(83,959	)	39,052
Other comprehensive loss attributable to noncontrolling interests	$	—		—		(8,406	)	—		(8,406	)

Condensed Consolidating Statement of Operations and Comprehensive Income

Three Months Ended February 29, 2016

(In thousands)	Lennar Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments		Total
Revenues:
Lennar Homebuilding	$	—		1,786,481		—		—		1,786,481
Lennar Financial Services	—			40,610		88,342		(4,996	)	123,956
Rialto	—			—		43,711		—		43,711
Lennar Multifamily	—			—		39,529		(13	)	39,516
Total revenues	—			1,827,091		171,582		(5,009	)	1,993,664
Cost and expenses:
Lennar Homebuilding	—			1,556,166		14,863		(2,824	)	1,568,205
Lennar Financial Services	—			41,812		70,069		(2,856	)	109,025
Rialto	—			—		43,217		(310	)	42,907
Lennar Multifamily	—			—		47,020		—		47,020
Corporate general and administrative	46,148			255		—		1,265		47,668
Total costs and expenses	46,148			1,598,233		175,169		(4,725	)	1,814,825
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities	—			3,849		(849	)	—		3,000
Lennar Homebuilding other income (expense), net	(274		)	(9,673	)	9,025		284		(638	)
Rialto equity in earnings from unconsolidated entities	—			—		1,497		—		1,497
Rialto other expense, net	—			—		(691	)	—		(691	)
Lennar Multifamily equity in earnings from unconsolidated entities	—			—		19,686		—		19,686
Earnings (loss) before income taxes	(46,422		)	223,034		25,081		—		201,693
Benefit (provision) for income taxes	13,035			(61,710	)	(7,566	)	—		(56,241	)
Equity in earnings from subsidiaries	177,467			4,538		—		(182,005	)	—
Net earnings (including net earnings attributable to noncontrolling interests)	144,080			165,862		17,515		(182,005	)	145,452
Less: Net earnings attributable to noncontrolling interests	—			—		1,372		—		1,372
Net earnings attributable to Lennar	$	144,080		165,862		16,143		(182,005	)	144,080
Other comprehensive income, net of tax:
Net unrealized loss on securities available-for-sale	$	—		—		(437	)	—		(437	)
Other comprehensive income attributable to Lennar	$	144,080		165,862		15,706		(182,005	)	143,643
Other comprehensive income attributable to noncontrolling interests	$	—		—		1,372		—		1,372

Condensed Consolidating Statement of Cash Flows

Three Months Ended February 28, 2017

(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)	$	38,080		56,832		18,721		(83,959	)	29,674
Distributions of earnings from guarantor and non-guarantor subsidiaries	77,066			6,893		—		(83,959	)	—
Other adjustments to reconcile net earnings (including net loss attributable to noncontrolling interests) to net cash provided by (used in) operating activities	(41,356		)	(421,010	)	428,057		83,959		49,650
Net cash provided by (used in) operating activities	73,790			(357,285	)	446,778		(83,959	)	79,324
Cash flows from investing activities:
Investments in and contributions to unconsolidated entities, net of distributions of capital	—			(111,072	)	(673	)	—		(111,745	)
Proceeds from sales of real estate owned	—			—		24,215		—		24,215
Originations of loans receivable	—			—		(9,330	)	—		(9,330	)
Purchases of commercial mortgage-backed securities bonds	—			—		(40,357	)	—		(40,357	)
Acquisition, net of cash acquired	(596,172		)	—		—		—		(596,172	)
Other	(2,824		)	(9,303	)	(20,566	)	—		(32,693	)
Distributions of capital from guarantor and non-guarantor subsidiaries	30,000			30,000		—		(60,000	)	—
Intercompany	(634,418		)	—		—		634,418		—
Net cash used in investing activities	(1,203,414		)	(90,375	)	(46,711	)	574,418		(766,082	)
Cash flows from financing activities:
Net borrowings under unsecured revolving credit facility	250,000			—		—		—		250,000
Net repayments under warehouse facilities	—			(25	)	(543,331	)	—		(543,356	)
Proceeds from senior notes and debt issuance costs	595,160			—		(6,008	)	—		589,152
Net proceeds on Rialto notes payable	—			—		32,489		—		32,489
Net proceeds (payments) on other borrowings	—			(15,217	)	6,370		—		(8,847	)
Net payments related to noncontrolling interests	—					(25,718	)	—		(25,718	)
Excess tax benefits from share-based awards	1,953			—		—		—		1,953
Common stock:
Issuances	99			—		—		—		99
Repurchases	(83		)	—		—		—		(83	)
Dividends	(9,400		)	(86,832	)	(57,127	)	143,959		(9,400	)
Intercompany	—			440,388		194,030		(634,418	)	—
Net cash provided by (used in) financing activities	837,729			338,314		(399,295	)	(490,459	)	286,289
Net increase (decrease) in cash and cash equivalents	(291,895		)	(109,346	)	772		—		(400,469	)
Cash and cash equivalents at beginning of period	697,112			377,070		255,347		—		1,329,529
Cash and cash equivalents at end of period	$	405,217		267,724		256,119		—		929,060

Condensed Consolidating Statement of Cash Flows

Three Months Ended February 29, 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)	$	144,080		165,862		17,515		(182,005	)	145,452
Distributions of earnings from guarantor and non-guarantor subsidiaries	177,467			4,538		—		(182,005	)	—
Other adjustments to reconcile net earnings (including net earnings attributable to noncontrolling interests) to net cash provided by (used in) operating activities	(254,499		)	(660,587	)	371,742		182,005		(361,339	)
Net cash provided by (used in) operating activities	67,048			(490,187	)	389,257		(182,005	)	(215,887	)
Cash flows from investing activities:
Investments in and contributions to unconsolidated entities, net of distributions of capital	—			(32,149	)	(2,466	)	—		(34,615	)
Proceeds from sales of real estate owned	—			—		20,256		—		20,256
Originations of loans receivable	—			—		(10,046	)	—		(10,046	)
Purchases of commercial mortgage-backed securities bonds	—			—		(23,078	)	—		(23,078	)
Other	(3,400		)	(14,297	)	(1,406	)	—		(19,103	)
Distributions of capital from guarantor and non-guarantor subsidiaries	20,000			20,000		—		(40,000	)	—
Intercompany	(699,551		)	—		—		699,551		—
Net cash used in investing activities	(682,951		)	(26,446	)	(16,740	)	659,551		(66,586	)
Cash flows from financing activities:
Net borrowings under unsecured revolving credit facility	500,000			—		—		—		500,000
Net repayments under warehouse facilities	—			—		(395,233	)	—		(395,233	)
Debt issuance costs	—			—		(684	)	—		(684	)
Conversions and exchanges of convertible senior notes	(162,852		)	—		—		—		(162,852	)
Principal payments on Rialto notes payable	—			—		(669	)	—		(669	)
Net payments on other borrowings				(52,383	)	—		—		(52,383	)
Net payments related to noncontrolling interests	—			—		(41,950	)	—		(41,950	)
Excess tax benefits from share-based awards	7,029			—		—		—		7,029
Common stock:
Repurchases	(219		)	—		—		—		(219	)
Dividends	(8,552		)	(185,862	)	(36,143	)	222,005		(8,552	)
Intercompany	—			646,727		52,824		(699,551	)	—
Net cash provided by (used in) financing activities	335,406			408,482		(421,855	)	(477,546	)	(155,513	)
Net decrease in cash and cash equivalents	(280,497		)	(108,151	)	(49,338	)	—		(437,986	)
Cash and cash equivalents at beginning of period	575,821			336,048		246,576		—		1,158,445
Cash and cash equivalents at end of period	$	295,324		227,897		197,238		—		720,459