Lennar Homebuilding Investments In Unconsolidated Entities (Tables)

12 Months Ended

Nov. 30, 2017

Equity Method Investments and Joint Ventures [Abstract]

Schedule of Unconsolidated Entities

The total debt of the Lennar Homebuilding unconsolidated entities in which the Company has investments was as follows:

	November 30,
(Dollars in thousands)	2017			2016
Non-recourse bank debt and other debt (partner’s share of several recourse)	$	64,197		48,945
Non-recourse land seller debt and other debt (1)	1,997			323,995
Non-recourse debt with completion guarantees	255,903			147,100
Non-recourse debt without completion guarantees	351,800			320,372
Non-recourse debt to the Company	673,897			840,412
The Company’s maximum recourse exposure (2)	69,181			52,438
Debt issuance costs	(5,747		)	(4,186	)
Total debt	$	737,331		888,664
The Company’s maximum recourse exposure as a % of total JV debt	9		%	6	%

(1) Non-recourse land seller debt and other debt as of November 30, 2016, included a $320 million non-recourse note related to a transaction between one of the Company's unconsolidated entities and another unconsolidated joint venture, which was settled in December 2016.

(2) As of November 30, 2017 and 2016, the Company's maximum recourse exposure was primarily related to the Company providing a repayment guarantee on three unconsolidated entities' debt and two unconsolidated entities' debt, respectively.

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:

Statements of Operations
	Years Ended November 30,
(In thousands)	2017			2016		2015
Revenues	$	471,899		439,874		1,309,517
Costs and expenses	616,217			578,831		969,509
Other income	23,253			—		49,343
Net earnings (loss) of unconsolidated entities	$	(121,065	)	(138,957	)	389,351
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities	$	(61,708	)	(49,275	)	63,373

Balance Sheets
	November 30,
(In thousands)	2017		2016
Assets:
Cash and cash equivalents	$	953,261	221,334
Inventories	3,751,525		3,889,795
Other assets	1,061,507		1,334,116
	$	5,766,293	5,445,245
Liabilities and equity:
Accounts payable and other liabilities	$	832,151	791,245
Debt (1)	737,331		888,664
Equity	4,196,811		3,765,336
	$	5,766,293	5,445,245

(1) Debt presented above is net of debt issuance costs of $5.7 million and $4.2 million, as of November 30, 2017 and 2016, respectively.

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
	November 30,
(In thousands)	2017		2016
Assets:
Cash and cash equivalents	$	95,552	230,229
Loans receivable	538,317		406,812
Real estate owned	348,601		439,191
Investment securities	1,849,795		1,379,155
Investments in partnerships	393,874		398,535
Other assets	42,949		29,036
	$	3,269,088	2,882,958
Liabilities and equity:
Accounts payable and other liabilities	$	48,374	36,131
Notes payable (1)	576,810		532,264
Equity	2,643,904		2,314,563
	$	3,269,088	2,882,958

(1) Notes payable are net of debt issuance costs of $3.1 million and $2.9 million, as of November 30, 2017 and 2016, respectively.

Statements of Operations
	Years Ended November 30,
(In thousands)	2017		2016	2015
Revenues	$	238,981	200,346	170,921
Costs and expenses	104,343		96,343	97,162
Other income, net (1)	109,927		49,342	144,941
Net earnings of unconsolidated entities	$	244,565	153,345	218,700
Rialto equity in earnings from unconsolidated entities	$	25,447	18,961	22,293

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

The following table reflects Rialto's investments in funds that invest in and manage real estate related assets and other investments:

								November 30, 2017		November 30, 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	$	41,860	58,116
Rialto Real Estate Fund II, LP	2012	1,305,000		1,305,000		100,000		100,000		86,904		96,192
Rialto Mezzanine Partners Fund, LP	2013	300,000		300,000		33,799		33,799		19,189		23,643
Rialto Capital CMBS Funds	2014	119,174		119,174		52,474		52,474		54,018		50,519
Rialto Real Estate Fund III	2015	1,887,000		569,482		140,000		40,104		41,223		9,093
Rialto Credit Partnership, LP	2016	220,000		159,886		19,999		14,534		13,288		5,794
Other investments										8,936		2,384
										$	265,418	245,741

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
	November 30,
(In thousands)	2017		2016
Assets:
Cash and cash equivalents	$	37,073	43,658
Operating properties and equipment	2,952,070		2,210,627
Other assets	36,772		33,703
	$	3,025,915	2,287,988
Liabilities and equity:
Accounts payable and other liabilities	$	212,123	196,617
Notes payable (1)	879,047		577,085
Equity	1,934,745		1,514,286
	$	3,025,915	2,287,988

(1) Notes payable are net of debt issuance costs of $17.6 million and $12.3 million, as of November 30, 2017 and 2016, respectively.

Statements of Operations
	Years Ended November 30,
(In thousands)	2017		2016	2015
Revenues	$	67,578	45,287	16,309
Costs and expenses	108,610		68,976	27,190
Other income, net	207,793		191,385	43,340
Net earnings of unconsolidated entities	$	166,761	167,696	32,459
Lennar Multifamily equity in earnings from unconsolidated entities (1)	$	85,739	85,519	19,518

(1) During the year ended November 30, 2017, 2016 and 2015, the Lennar Multifamily segment sold seven, seven and two operating properties, respectively, through its unconsolidated entities resulting in the segment's $96.7 million, $91.0 million and $22.2 million share of gains, respectively.

The Company’s recorded investments in unconsolidated entities were as follows:

	November 30,
(In thousands)	2017		2016
Lennar Homebuilding	$	900,769	811,723
Rialto	$	265,418	245,741
Lennar Multifamily	$	407,544	318,559