Supplemental Financial Information

9 Months Ended

Aug. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The indentures governing the Company’s 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, 4.125% senior notes due 2022, 4.750% senior notes due 2022, 4.875% senior notes due 2023, 4.50% senior notes due 2024 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 August 31, 2017 they were guaranteeing Lennar Corporation's letter of credit facilities and its Credit Facility, disclosed in Note 12. 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 August 31, 2017 was as follows:

Condensed Consolidating Balance Sheet

August 31, 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	$	385,066	258,646	16,570	—		660,282
Inventories	—		10,625,325	296,259	—		10,921,584
Investments in unconsolidated entities	—		999,819	16,769	—		1,016,588
Goodwill	—		140,270	—	—		140,270
Other assets	247,684		597,581	108,265	(16,734	)	936,796
Investments in subsidiaries	4,481,309		52,454	—	(4,533,763	)	—
Intercompany	8,214,897		—	—	(8,214,897	)	—
	13,328,956		12,674,095	437,863	(12,765,394	)	13,675,520
Lennar Financial Services	—		125,493	1,262,213	(2,518	)	1,385,188
Rialto	—		—	1,195,407	—		1,195,407
Lennar Multifamily	—		—	683,258	—		683,258
Total assets	$	13,328,956	12,799,588	3,578,741	(12,767,912	)	16,939,373
LIABILITIES AND EQUITY
Lennar Homebuilding:
Accounts payable and other liabilities	$	556,909	918,602	136,621	(19,252	)	1,592,880
Liabilities related to consolidated inventory not owned	—		368,179	13,500	—		381,679
Senior notes and other debts payable	5,217,787		280,249	25,729	—		5,523,765
Intercompany	—		7,032,364	1,182,533	(8,214,897	)	—
	5,774,696		8,599,394	1,358,383	(8,234,149	)	7,498,324
Lennar Financial Services	—		39,806	910,292	—		950,098
Rialto	—		—	703,329	—		703,329
Lennar Multifamily	—		—	128,162	—		128,162
Total liabilities	5,774,696		8,639,200	3,100,166	(8,234,149	)	9,279,913
Stockholders’ equity	7,554,260		4,160,388	373,375	(4,533,763	)	7,554,260
Noncontrolling interests	—		—	105,200	—		105,200
Total equity	7,554,260		4,160,388	478,575	(4,533,763	)	7,659,460
Total liabilities and equity	$	13,328,956	12,799,588	3,578,741	(12,767,912	)	16,939,373

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
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
Rialto	—		—	1,276,210	—		1,276,210
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
Lennar Financial Services	—		38,530	1,279,753	—		1,318,283
Rialto	—		—	707,980	—		707,980
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 (Loss)

Three Months Ended August 31, 2017



(In thousands)	Lennar Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments		Total
Revenues:
Lennar Homebuilding	$	—		2,872,920		12,275		—		2,885,195
Lennar Financial Services	—			90,220		129,853		(5,017	)	215,056
Rialto	—			—		57,810		—		57,810
Lennar Multifamily	—			—		103,457		(42	)	103,415
Total revenues	—			2,963,140		303,395		(5,059	)	3,261,476
Cost and expenses:
Lennar Homebuilding	—			2,483,401		12,107		(3,443	)	2,492,065
Lennar Financial Services	—			79,077		89,656		(2,734	)	165,999
Rialto	—			—		49,574		(71	)	49,503
Lennar Multifamily	—			—		105,956		—		105,956
Corporate general and administrative	71,285			310		—		1,265		72,860
Total costs and expenses	71,285			2,562,788		257,293		(4,983	)	2,886,383
Lennar Homebuilding equity in loss from unconsolidated entities	—			(9,647	)	(4	)	—		(9,651	)
Lennar Homebuilding other income (expense), net	(67		)	1,244		1,544		76		2,797
Rialto equity in earnings from unconsolidated entities	—			—		4,858		—		4,858
Rialto other expense, net	—			—		(16,357	)	—		(16,357	)
Lennar Multifamily equity in earnings from unconsolidated entities	—			—		11,645		—		11,645
Earnings (loss) before income taxes	(71,352		)	391,949		47,788		—		368,385
Benefit (provision) for income taxes	23,689			(128,170	)	(20,314	)	—		(124,795	)
Equity in earnings from subsidiaries	296,828			22,477		—		(319,305	)	—
Net earnings (including net loss attributable to noncontrolling interests)	249,165			286,256		27,474		(319,305	)	243,590
Less: Net loss attributable to noncontrolling interests	—			—		(5,575	)	—		(5,575	)
Net earnings attributable to Lennar	$	249,165		286,256		33,049		(319,305	)	249,165
Other comprehensive income, net of tax:
Net unrealized gains on securities available-for-sale	$	—		—		165		—		165
Other comprehensive income attributable to Lennar	$	249,165		286,256		33,214		(319,305	)	249,330
Other comprehensive loss attributable to noncontrolling interests	$	—		—		(5,575	)	—		(5,575	)

Condensed Consolidating Statement of Operations and Comprehensive Income

Three Months Ended August 31, 2016



(In thousands)	Lennar Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments		Total
Revenues:
Lennar Homebuilding	$	—		2,492,189		4,780		—		2,496,969
Lennar Financial Services	—			60,518		135,939		(5,013	)	191,444
Rialto	—			—		63,885		—		63,885
Lennar Multifamily	—			—		81,620		(24	)	81,596
Total revenues	—			2,552,707		286,224		(5,037	)	2,833,894
Cost and expenses:
Lennar Homebuilding	—			2,157,506		7,309		(788	)	2,164,027
Lennar Financial Services	—			50,602		92,431		(4,837	)	138,196
Rialto	—			—		62,721		(415	)	62,306
Lennar Multifamily	—			—		84,007		—		84,007
Corporate general and administrative	59,644			255		—		1,265		61,164
Total costs and expenses	59,644			2,208,363		246,468		(4,775	)	2,509,700
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities	—			(18,127	)	93		—		(18,034	)
Lennar Homebuilding other income, net	(251		)	28,850		1,113		262		29,974
Rialto equity in earnings from unconsolidated entities	—			—		5,976		—		5,976
Rialto other expense, net	—			—		(7,612	)	—		(7,612	)
Lennar Multifamily equity in earnings from unconsolidated entities	—			—		5,060		—		5,060
Earnings (loss) before income taxes	(59,895		)	355,067		44,386		—		339,558
Benefit (provision) for income taxes	18,646			(106,867	)	(18,206	)	—		(106,427	)
Equity in earnings from subsidiaries	277,091			22,301		—		(299,392	)	—
Net earnings (including net loss attributable to noncontrolling interests)	235,842			270,501		26,180		(299,392	)	233,131
Less: Net loss attributable to noncontrolling interests	—			—		(2,711	)	—		(2,711	)
Net earnings attributable to Lennar	$	235,842		270,501		28,891		(299,392	)	235,842
Other comprehensive income, net of tax:
Net unrealized gain on securities available-for-sale	$	—		—		639		—		639
Reclassification adjustments for gains included in earnings, net of tax	—			—		(31	)	—		(31	)
Other comprehensive income attributable to Lennar	$	235,842		270,501		29,499		(299,392	)	236,450
Other comprehensive loss attributable to noncontrolling interests	$	—		—		(2,711	)	—		(2,711	)

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

Nine Months Ended August 31, 2017



(In thousands)	Lennar Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments		Total
Revenues:
Lennar Homebuilding	$	—		7,761,414		28,216		—		7,789,630
Lennar Financial Services	—			227,325		359,152		(15,015	)	571,462
Rialto	—			—		207,804		—		207,804
Lennar Multifamily	—			—		292,009		(109	)	291,900
Total revenues	—			7,988,739		887,181		(15,124	)	8,860,796
Cost and expenses:
Lennar Homebuilding	—			6,802,418		30,693		(4,002	)	6,829,109
Lennar Financial Services	—			205,875		266,317		(14,178	)	458,014
Rialto	—			—		175,705		(213	)	175,492
Lennar Multifamily	—			—		301,303		—		301,303
Corporate general and administrative	195,681			856		—		3,796		200,333
Total costs and expenses	195,681			7,009,149		774,018		(14,597	)	7,964,251
Lennar Homebuilding equity in loss from unconsolidated entities	—			(42,675	)	(16	)	—		(42,691	)
Lennar Homebuilding other income (expense), net	(498		)	7,897		4,438		527		12,364
Lennar Homebuilding loss due to litigation	—			(140,000	)	—		—		(140,000	)
Rialto equity in earnings from unconsolidated entities	—			—		11,310		—		11,310
Rialto other expense, net	—			—		(54,119	)	—		(54,119	)
Lennar Multifamily equity in earnings from unconsolidated entities	—			—		44,219		—		44,219
Earnings (loss) before income taxes	(196,179		)	804,812		118,995		—		727,628
Benefit (provision) for income taxes	65,955			(263,886	)	(55,725	)	—		(253,656	)
Equity in earnings from subsidiaries	631,114			50,785		—		(681,899	)	—
Net earnings (including net loss attributable to noncontrolling interests)	500,890			591,711		63,270		(681,899	)	473,972
Less: Net loss attributable to noncontrolling interests	—			—		(26,918	)	—		(26,918	)
Net earnings attributable to Lennar	$	500,890		591,711		90,188		(681,899	)	500,890
Other comprehensive income, net of tax:
Net unrealized gain on securities available-for-sale	$	—		—		1,556		—		1,556
Reclassification adjustments for loss included in earnings, net of tax	—			—		4		—		4
Other comprehensive income attributable to Lennar	$	500,890		591,711		91,748		(681,899	)	502,450
Other comprehensive loss attributable to noncontrolling interests	$	—		—		(26,918	)	—		(26,918	)

Condensed Consolidating Statement of Operations and Comprehensive Income

Nine Months Ended August 31, 2016



(In thousands)	Lennar Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments		Total
Revenues:
Lennar Homebuilding	$	—		6,729,555		4,780		—		6,734,335
Lennar Financial Services	—			154,438		351,923		(15,021	)	491,340
Rialto	—			—		152,434		—		152,434
Lennar Multifamily	—			—		195,320		(56	)	195,264
Total revenues	—			6,883,993		704,457		(15,077	)	7,573,373
Cost and expenses:
Lennar Homebuilding	—			5,840,084		15,941		(11,505	)	5,844,520
Lennar Financial Services	—			140,618		243,755		(5,300	)	379,073
Rialto	—			—		156,198		(782	)	155,416
Lennar Multifamily	—			—		204,244		—		204,244
Corporate general and administrative	160,074			764		—		3,796		164,634
Total costs and expenses	160,074			5,981,466		620,138		(13,791	)	6,747,887
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities	—			(25,138	)	471		—		(24,667	)
Lennar Homebuilding other income (expense), net	(1,257		)	41,800		1,239		1,286		43,068
Rialto equity in earnings from unconsolidated entities	—			—		14,337		—		14,337
Rialto other expense, net	—			—		(27,888	)	—		(27,888	)
Lennar Multifamily equity in earnings from unconsolidated entities	—			—		38,754		—		38,754
Earnings (loss) before income taxes	(161,331		)	919,189		111,232		—		869,090
Benefit (provision) for income taxes	49,706			(277,230	)	(38,945	)	—		(266,469	)
Equity in earnings from subsidiaries	710,016			42,297		—		(752,313	)	—
Net earnings (including net earnings attributable to noncontrolling interests)	598,391			684,256		72,287		(752,313	)	602,621
Less: Net earnings attributable to noncontrolling interests	—			—		4,230		—		4,230
Net earnings attributable to Lennar	$	598,391		684,256		68,057		(752,313	)	598,391
Other comprehensive income, net of tax:
Net unrealized gain on securities available-for-sale	$	—		—		1,121		—		1,121
Reclassification adjustments for gains included in earnings, net of tax	—			—		(37	)	—		(37	)
Other comprehensive income attributable to Lennar	$	598,391		684,256		69,141		(752,313	)	599,475
Other comprehensive income attributable to noncontrolling interests	$	—		—		4,230		—		4,230

Condensed Consolidating Statement of Cash Flows

Nine Months Ended August 31, 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)	$	500,890		591,711		63,270		(681,899	)	473,972
Distributions of earnings from guarantor and non-guarantor subsidiaries	631,114			50,785		—		(681,899	)	—
Other adjustments to reconcile net earnings (including net loss attributable to noncontrolling interests) to net cash provided by operating activities	(495,120		)	(596,338	)	263,300		681,899		(146,259	)
Net cash provided by operating activities	636,884			46,158		326,570		(681,899	)	327,713
Cash flows from investing activities:
Investments in and contributions to unconsolidated entities, net of distributions of capital	—			(232,378	)	(25,622	)	—		(258,000	)
Proceeds from sales of real estate owned	—			—		72,952		—		72,952
Receipt of principal payment on loans held-for-sale	—			—		5,937		—		5,937
Originations of loans receivable	—			—		(57,375	)	—		(57,375	)
Purchases of commercial mortgage-backed securities bonds	—			—		(70,187	)	—		(70,187	)
Acquisition, net of cash acquired	(611,103		)	—		(296	)	—		(611,399	)
Other	(6,174		)	(36,168	)	2,863		—		(39,479	)
Distributions of capital from guarantor and non-guarantor subsidiaries	80,000			80,000		—		(160,000	)	—
Intercompany	(1,200,426		)	—		—		1,200,426		—
Net cash used in investing activities	(1,737,703		)	(188,546	)	(71,728	)	1,040,426		(957,551	)
Cash flows from financing activities:
Net repayments under warehouse facilities	—			(78	)	(397,682	)	—		(397,760	)
Proceeds from senior notes and debt issuance costs	1,240,089			—		(6,786	)	—		1,233,303
Redemption of senior notes	(400,000		)	(258,595	)	—		—		(658,595	)
Net proceeds on Rialto notes payable	—			—		44,550		—		44,550
Net proceeds (payments) on other borrowings	—			(50,691	)	71,323		—		20,632
Net payments related to noncontrolling interests	—					(51,483	)	—		(51,483	)
Excess tax benefits from share-based awards	1,980			—		—		—		1,980
Common stock:
Issuances	693			—		—		—		693
Repurchases	(27,104		)	—		—		—		(27,104	)
Dividends	(28,181		)	(671,711	)	(170,188	)	841,899		(28,181	)
Intercompany	—			951,237		249,189		(1,200,426	)	—
Net cash provided by (used in) financing activities	787,477			(29,838	)	(261,077	)	(358,527	)	138,035
Net decrease in cash and cash equivalents	(313,342		)	(172,226	)	(6,235	)	—		(491,803	)
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	$	383,770		204,844		249,112		—		837,726

Condensed Consolidating Statement of Cash Flows

Nine Months Ended August 31, 2016



(In thousands)	Lennar Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments		Total
Cash flows from operating activities:
Net earnings (including net earnings attributable to noncontrolling interests)	$	598,391		684,256		72,287		(752,313	)	602,621
Distributions of earnings from guarantor and non-guarantor subsidiaries	710,016			42,297		—		(752,313	)	—
Other adjustments to reconcile net earnings (including net earnings attributable to noncontrolling interests) to net cash provided by (used in) operating activities	(712,476		)	(707,332	)	61,794		752,313		(605,701	)
Net cash provided by (used in) operating activities	595,931			19,221		134,081		(752,313	)	(3,080	)
Cash flows from investing activities:
Proceeds from sale of operating properties and equipment	—			17,450		—		—		17,450
Investments in and contributions to unconsolidated entities, net of distributions of capital	—			(100,475	)	(9,752	)	—		(110,227	)
Proceeds from sales of real estate owned	—			—		66,638		—		66,638
Originations/purchases of loans receivable	—			—		(56,507	)	—		(56,507	)
Receipts of principal payments on loans receivable and other	—			—		57,733		—		57,733
Purchases of commercial mortgage-backed securities bonds	—			—		(33,005	)	—		(33,005	)
Other	(8,836		)	(41,120	)	(8,801	)	—		(58,757	)
Distributions of capital from guarantor and non-guarantor subsidiaries	40,000			40,000		—		(80,000	)	—
Intercompany	(956,734		)	—		—		956,734		—
Net cash provided by (used in) investing activities	(925,570		)	(84,145	)	16,306		876,734		(116,675	)
Cash flows from financing activities:
Net borrowings under unsecured revolving credit facility	125,000			—		—		—		125,000
Net (repayments) borrowings under warehouse facilities	—			141		(137,466	)	—		(137,325	)
Proceeds from senior notes and debt issuance costs	495,974			—		(931	)	—		495,043
Redemption of senior notes	(250,000		)	—		—		—		(250,000	)
Conversions and exchanges of convertible senior notes	(233,893		)	—		—		—		(233,893	)
Principal payments on Rialto notes payable including structured notes	—			—		(4,121	)	—		(4,121	)
Net payments on other borrowings	—			(99,804	)			—		(99,804	)
Net payments related to noncontrolling interests	—					(97,912	)	—		(97,912	)
Excess tax benefits from share-based awards	7,039			—		—		—		7,039
Common stock:
Issuances	19,471			—		—		—		19,471
Repurchases	(19,871		)	—		—		—		(19,871	)
Dividends	(26,222		)	(724,256	)	(108,057	)	832,313		(26,222	)
Intercompany	—			782,877		173,857		(956,734	)	—
Net cash provided by (used in) financing activities	117,498			(41,042	)	(174,630	)	(124,421	)	(222,595	)
Net decrease in cash and cash equivalents	(212,141		)	(105,966	)	(24,243	)	—		(342,350	)
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	$	363,680		230,082		222,333		—		816,095