Operating and Reporting Segments

3 Months Ended

Feb. 28, 2017

Segment Reporting [Abstract]

Operating and Reporting Segments

Operating and Reporting Segments

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:

(1) Homebuilding East

(2) Homebuilding Central

(3) Homebuilding West

(4) Lennar Financial Services

(5) Rialto

(6) Lennar Multifamily

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 loss due to litigation accrual 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⁽¹⁾, 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

(1) Florida includes the financial information related to WCI from the date of acquisition (February 10, 2017) to February 28, 2017.

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 Rialto Mortgage Finance ("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 the sales of land, revenue from construction activities and management fees generated from joint ventures and equity in earnings (loss) from unconsolidated entities, less the cost of sales of land, 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 in the Company’s Form 10-K for the year ended November 30, 2016. 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:

(In thousands)	February 28, 2017		November 30, 2016
Assets:
Homebuilding East (1)	$	4,791,376	3,512,990
Homebuilding Central	2,070,652		1,993,403
Homebuilding West	4,606,982		4,318,924
Homebuilding Other	900,876		907,523
Rialto	1,228,874		1,276,210
Lennar Financial Services	1,231,708		1,754,672
Lennar Multifamily	610,161		526,131
Corporate and unallocated	789,484		1,071,928
Total assets	$	16,230,113	15,361,781
Lennar Homebuilding goodwill (2)	$	143,298	—
Rialto goodwill	$	5,396	5,396
Lennar Financial Services goodwill (2)	$	59,838	39,838

(1) Homebuilding East segment includes the provisional fair values of homebuilding assets acquired as part of the WCI acquisition.

(2) In connection with the WCI acquisition, the Company allocated $143.3 million of goodwill to the Lennar Homebuilding East reportable segment and $20.0 million to the Lennar Financial Services segment. These amounts are provisional pending completion of the fair value analysis of acquired assets and liabilities.

	Three Months Ended
	February 28,			February 29,
(In thousands)	2017			2016
Revenues:
Homebuilding East	$	767,726		659,054
Homebuilding Central	516,181			413,840
Homebuilding West	552,798			551,339
Homebuilding Other	181,989			162,248
Lennar Financial Services	148,043			123,956
Rialto	82,006			43,711
Lennar Multifamily	88,685			39,516
Total revenues (1)	$	2,337,428		1,993,664
Operating earnings (loss):
Homebuilding East (2)		($55,709	)	84,706
Homebuilding Central	52,858			33,195
Homebuilding West	53,360			88,834
Homebuilding Other	20,829			13,903
Lennar Financial Services	20,664			14,931
Rialto	(843		)	1,610
Lennar Multifamily	19,183			12,182
Total operating earnings	110,342			249,361
Corporate general and administrative expenses	60,699			47,668
Earnings before income taxes	$	49,643		201,693

(1) Total revenues were net of sales incentives of $123.5 million ($22,700 per home delivered) for the three months ended February 28, 2017, compared to $103.7 million ($21,600 per home delivered) for the three months ended February 29, 2016.

(2)

Homebuilding East operating loss for the three months ended February 28, 2017 included a $140 million loss on litigation accrual (see Note 17).

Lennar Financial Services Segment

The assets and liabilities related to the Lennar Financial Services segment were as follows:

(In thousands)	February 28, 2017		November 30, 2016
Assets:
Cash and cash equivalents	$	119,308	123,964
Restricted cash	10,380		17,053
Receivables, net (1)	141,941		409,528
Loans held-for-sale (2)	682,029		939,405
Loans held-for-investment, net	32,180		30,004
Investments held-to-maturity	48,104		41,991
Investments available-for-sale (3)	55,841		53,570
Goodwill (4)	59,838		39,838
Other (5)	82,087		99,319
	$	1,231,708	1,754,672
Liabilities:
Notes and other debts payable	$	560,275	1,077,228
Other (6)	228,064		241,055
	$	788,339	1,318,283

(1) Receivables, net primarily related to loans sold to investors for which the Company had not yet been paid as of February 28, 2017 and November 30, 2016, 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 February 28, 2017, goodwill included $20.0 million of goodwill related to the WCI acquisition. The amount provided herein is provisional, pending completion of the fair value analysis of WCI's acquired assets and liabilities assumed. See Note 2.

(5) As of February 28, 2017 and November 30, 2016, other assets included mortgage loan commitments carried at fair value of $13.7 million and $7.4 million, respectively, and mortgage servicing rights carried at fair value of $26.5 million and $23.9 million, respectively. In addition, other assets also included forward contracts carried at fair value of $26.5 million as of November 30, 2016.

(6) As of February 28, 2017 and November 30, 2016, other liabilities included $57.5 million and $57.4 million, respectively, of certain of the Company’s self-insurance reserves related to construction defects, general liability and workers’ compensation. Other liabilities also included forward contracts carried at fair value of $1.7 million as of February 28, 2017.

At February 28, 2017, the Lennar Financial Services segment warehouse facilities were as follows:

(In thousands)	Maximum Aggregate Commitment
364-day warehouse repurchase facility that matures June 2017	$	400,000
364-day warehouse repurchase facility that matures September 2017	300,000
364-day warehouse repurchase facility that matures December 2017 (1)	400,000
Total	$	1,100,000

(1) Maximum aggregate commitment includes an uncommitted amount of $250 million.

The Lennar Financial Services segment uses these facilities to finance its lending activities until the mortgage loans are sold to investors and the proceeds are collected. The facilities are non-recourse to the Company and are expected to be renewed or replaced with other facilities when they mature. Borrowings under the facilities and their prior year predecessors were $560.0 million and $1.1 billion at February 28, 2017 and November 30, 2016, respectively, and were collateralized by mortgage loans and receivables on loans sold to investors but not yet paid for with outstanding principal balances of $582.0 million and $1.1 billion at February 28, 2017 and November 30, 2016, respectively. If the facilities are not renewed or replaced, the borrowings under the lines of credit will be paid off by selling the mortgage loans held-for-sale to investors and by collecting on receivables on loans sold but not yet paid for. Without the facilities, the Lennar Financial Services segment would have to use cash from operations and other funding sources to finance its lending activities.

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 accruals for possible losses associated with mortgage loans previously originated and sold to investors. The Company establishes accruals for such possible losses 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. 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. Loan origination liabilities are included in Lennar Financial Services’ liabilities in the Company's condensed consolidated balance sheets.

The activity in the Company’s loan origination liabilities was as follows:

	Three Months Ended
	February 28,			February 29,
(In thousands)	2017			2016
Loan origination liabilities, beginning of period	$	24,905		19,492
Provision for losses	878			788
Payments/settlements	(780		)	(172	)
Loan origination liabilities, end of period	$	25,003		20,108

Rialto Segment

The assets and liabilities related to the Rialto segment were as follows:

(In thousands)	February 28, 2017		November 30, 2016
Assets:
Cash and cash equivalents	$	162,513	148,827
Restricted cash (1)	5,630		9,935
Receivables, net (2)	209,025		204,518
Loans held-for-sale (3)	44,939		126,947
Loans receivable, net	106,476		111,608
Real estate owned, net	208,793		243,703
Investments in unconsolidated entities	235,066		245,741
Investments held-to-maturity	112,216		71,260
Other	144,216		113,671
	$	1,228,874	1,276,210
Liabilities:
Notes and other debts payable (4)	$	626,042	622,335
Other	54,078		85,645
	$	680,120	707,980

(1) Restricted cash primarily consists of upfront deposits and application fees 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.

(2) Receivables, net primarily related to loans sold but not settled as of February 28, 2017 and November 30, 2016.

(3) Loans held-for-sale related to unsold loans originated by RMF carried at fair value.

(4) As of February 28, 2017 and November 30, 2016, notes and other debts payable primarily included $348.9 million and $348.7 million, respectively, related to Rialto's 7.00% senior notes due 2018, and $197.1 million and 223.5 million, respectively, related to Rialto's warehouse repurchase facilities.

Rialto Mortgage Finance - loans held-for-sale

During the three months ended February 28, 2017, RMF originated loans with a total principal balance of $403.7 million of which $394.3 million were recorded as loans held-for-sale and $9.3 million were recorded as accrual loans within loans receivable, net, and sold $477.7 million of loans into three separate securitizations. During the three months ended February 29, 2016, RMF originated loans with a total principal balance of $315.3 million of which $305.8 million were recorded as loans held-for-sale and $9.5 million as accrual loans within loans receivables, net, and sold $380.2 million of loans into two separate securitizations. As of February 28, 2017 and November 30, 2016, originated loans with an unpaid principal balance of $195.8 million and $199.8 million, respectively, were sold into a securitization trust but not settled and thus were included as receivables, net.

FDIC Portfolios

In 2010, the Rialto segment acquired indirectly 40% managing member equity interests in two limited liability companies ("LLCs") 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.

In February 2017, the FDIC exercised its “clean-up call rights” under the Amended and Restated Limited Liability Company Agreement (“Operating Agreement”). As a result, Rialto has 150 days to liquidate and sell the assets in the FDIC Portfolios in accordance with the Operating Agreement. After July 10, 2017, the FDIC can, at its discretion, sell any remaining assets. At February 28, 2017, the consolidated LLCs had total combined assets of $173.2 million, which primarily included $116.7 million of real estate owned, net and $32.0 million of loans receivable, net.

Warehouse Facilities

At February 28, 2017, Rialto warehouse facilities were as follows:

(In thousands)	Maximum Aggregate Commitment
364-day warehouse repurchase facility that matures April 2017 (1)	$	500,000
Warehouse repurchase facility that matures December 2017	200,000
364-day warehouse repurchase facility that matures January 2018	250,000
Total - Loan origination and securitization business (RMF)	$	950,000
Warehouse repurchase facility that matures August 2018 (two - one year extensions) (2)	100,000
Total	$	1,050,000

(1) Rialto has the option of a six month extension of the warehouse repurchase facility.

(2) 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 as of both February 28, 2017 and November 30, 2016.

Borrowings under the facilities that finance RMF's loan originations and securitization activities were $153.8 million and $180.2 million as of February 28, 2017 and November 30, 2016, 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.

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 is 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:

								February 28, 2017		February 28, 2017		November 30, 2016
(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	$	700,006	$	700,006	$	75,000	$	75,000	$	49,445	58,116
Rialto Real Estate Fund II, LP	2012	1,305,000		1,305,000		100,000		100,000		90,837		96,192
Rialto Mezzanine Partners Fund, LP	2013	300,000		300,000		33,799		33,799		22,655		23,643
Rialto Capital CMBS Funds	2014	119,174		119,174		52,474		52,474		50,222		50,519
Rialto Real Estate Fund III	2015	1,625,605		182,909		100,000		9,805		11,559		9,093
Rialto Credit Partnership, LP	2016	220,000		88,730		19,999		8,066		8,243		5,794
Other investments										2,105		2,384
										$	235,066	245,741

During the three months ended February 28, 2017 and February 29, 2016, Rialto received $0.9 million and $4.9 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. In addition, Rialto received $10.0 million of distributions with regard to its carried interest in Rialto Real Estate Fund, LP. These 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 carried interest 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:

Balance Sheets

(In thousands)	February 28, 2017		November 30, 2016
Assets:
Cash and cash equivalents	$	150,154	230,229
Loans receivable	418,802		406,812
Real estate owned	393,601		439,191
Investment securities	1,405,256		1,379,155
Investments in partnerships	430,844		398,535
Other assets	47,090		29,036
	$	2,845,747	2,882,958
Liabilities and equity:
Accounts payable and other liabilities	$	51,959	36,131
Notes payable (1)	557,712		532,264
Equity	2,236,076		2,314,563
	$	2,845,747	2,882,958

(1) Notes payable presented above are net of debt issuance costs of $2.9 million, as of both February 28, 2017 and November 30, 2016.

Statements of Operations

	Three Months Ended
	February 28,		February 29,
(In thousands)	2017		2016
Revenues	$	57,156	44,296
Costs and expenses	28,001		20,899
Other income (expense), net (1)	327		(15,162	)
Net earnings of unconsolidated entities	$	29,482	8,235
Rialto equity in earnings from unconsolidated entities	$	722	1,497

(1) Other income (expense), net, included realized and unrealized gains (losses) on investments.

At February 28, 2017 and November 30, 2016, the carrying value of Rialto's commercial mortgage-backed securities ("CMBS") was $112.2 million and $71.3 million, respectively. These securities were purchased at discounts ranging from 9% to 78% with coupon rates ranging from 1.3% to 4.4%, stated and assumed final distribution dates between November 2020 and February 2027, and stated maturity dates between November 2043 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 the Rialto segment’s assessment, no impairment charges were recorded during either the three months ended February 28, 2017 or February 29, 2016. The Rialto segment classified these securities as held-to-maturity based on its intent and ability to hold the securities until maturity.)

Lennar Multifamily Segment

The 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:

(In thousands)	February 28, 2017		November 30, 2016
Assets:
Cash and cash equivalents	$	6,423	6,600
Receivables (1)	64,388		58,929
Land under development	161,317		139,713
Investments in unconsolidated entities	346,767		318,559
Other assets	31,266		2,330
	$	610,161	526,131
Liabilities:
Accounts payable and other liabilities	$	105,560	117,973

(1) Receivables primarily related to general contractor services and management fee income receivables due from unconsolidated entities as of February 28, 2017 and November 30, 2016, respectively.

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 February 28, 2017 and November 30, 2016, the fair value of the completion guarantees was immaterial. Additionally, as of February 28, 2017 and November 30, 2016, the Lennar Multifamily segment had $18.3 million and $32.0 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 12 related to the Company's performance and financial letters of credit. As of February 28, 2017 and November 30, 2016, Lennar Multifamily segment's unconsolidated entities had non-recourse debt with completion guarantees of $665.5 million and $589.4 million, respectively.

In many instances, the Lennar Multifamily segment is appointed as the construction, development and property manager for certain of its Lennar Multifamily unconsolidated entities and receives fees for performing this function. During the three months ended February 28, 2017 and February 29, 2016, the Lennar Multifamily segment recorded fee income, net of deferrals, from its unconsolidated entities of $13.0 million and $8.1 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 an investment. During the three months ended February 28, 2017 and February 29, 2016, the Lennar Multifamily segment provided general contractor services totaling $75.7 million and $31.4 million, respectively, which were partially offset by costs related to those services of $73.7 million and $30.6 million, respectively.

The Lennar Multifamily Venture (the "Venture") is a long-term multifamily development investment vehicle involved in the development, construction and property management of class-A multifamily assets with $2.2 billion in equity commitments, including a $504 million co-investment commitment by Lennar comprised of cash, undeveloped land and preacquisition costs. During the three months ended February 28, 2017, $150.7 million in equity commitments were called, of which the Company contributed $33.9 million representing the Company's pro-rata portion of the called equity. During the three months ended February 28, 2017, the Company received no distributions as a return of capital from the Venture. As of February 28, 2017, $1.1 billion of the $2.2 billion in equity commitments had been called, of which the Company had contributed $249.7 million representing its pro-rata portion of the called equity, resulting in a remaining equity commitment for the Company of $254.3 million. As of February 28, 2017 and November 30, 2016, the carrying value of the Company's investment in the Venture was $230.0 million and $198.2 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:

Balance Sheets

(In thousands)	February 28, 2017		November 30, 2016
Assets:
Cash and cash equivalents	$	57,975	43,658
Operating properties and equipment	2,415,610		2,210,627
Other assets	30,808		33,703
	$	2,504,393	2,287,988
Liabilities and equity:
Accounts payable and other liabilities	$	206,376	196,617
Notes payable (1)	649,034		577,085
Equity	1,648,983		1,514,286
	$	2,504,393	2,287,988

(1) Notes payable presented above are net of debt issuance costs of $16.5 million and $12.3 million, as of February 28, 2017 and November 30, 2016, respectively.

Statements of Operations

	Three Months Ended
	February 28,		February 29,
(In thousands)	2017		2016
Revenues	$	11,617	8,314
Costs and expenses	22,346		11,672
Other income, net	50,539		40,122
Net earnings of unconsolidated entities	$	39,810	36,764
Lennar Multifamily equity in earnings from unconsolidated entities (1)	$	23,147	19,686

(1)

For the three months ended February 28, 2017, Lennar Multifamily equity in earnings from unconsolidated entities included the segment's $26.0 million share of gains as a result of the sale of two operating properties by its unconsolidated entities. For the three months ended February 29, 2016, Lennar Multifamily equity in earnings from unconsolidated entities included the segment's $20.4 million share of gain as a result of a sale of an operating property by one of its unconsolidated entities.