Homebuilding Investments in Unconsolidated Entities (Tables)

3 Months Ended

Feb. 28, 2019

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

Balance Sheets

(In thousands)	February 28, 2019		November 30, 2018
Assets:
Cash and cash equivalents	$	741,581	781,833
Inventories	4,315,061		4,291,470
Other assets	1,041,639		1,045,274
	$	6,098,281	6,118,577
Liabilities and equity:
Accounts payable and other liabilities	$	868,466	874,355
Debt (1)	1,219,163		1,202,556
Equity	4,010,652		4,041,666
	$	6,098,281	6,118,577
Homebuilding investments in unconsolidated entities (2)	$	924,056	870,201

(1) Debt presented above is net of debt issuance costs of $11.3 million and $12.4 million, as of February 28, 2019 and November 30, 2018, respectively.

(2)

Homebuilding investments in unconsolidated entities as of February 28, 2019 and November 30, 2018, do not include $67.0 million and $62.0 million, respectively, of the negative investment balance for one unconsolidated entity as it was reclassed to other liabilities.Summarized condensed financial information on a combined 100% basis related to Homebuilding’s unconsolidated entities that are accounted for by the equity method was as follows:Statements of Operations

	Three Months Ended
	February 28,
(In thousands)	2019		2018
Revenues	90,644		68,189
Costs and expenses	123,751		107,424
Other income	197		—
Net loss of unconsolidated entities	(32,910	)	(39,235	)
Homebuilding equity in loss from unconsolidated entities	(13,756	)	(14,128	)

The total debt of the Homebuilding unconsolidated entities in which the Company has investments, including Lennar's maximum recourse exposure, were as follows:

(Dollars in thousands)	February 28, 2019			November 30, 2018
Non-recourse bank debt and other debt (partner’s share of several recourse)	$	41,816		48,313
Non-recourse debt with completion guarantees	233,115			239,568
Non-recourse debt without completion guarantees	896,219			861,371
Non-recourse debt to the Company	1,171,150			1,149,252
The Company’s maximum recourse exposure (1)	59,266			65,707
Debt issuance costs	(11,253		)	(12,403	)
Total debt	$	1,219,163		1,202,556
The Company’s maximum recourse exposure as a % of total JV debt	5		%	5	%

(1)

As of February 28, 2019 and November 30, 2018, the Company's maximum recourse exposure was primarily related to the Company providing repayment guarantees on three and four unconsolidated entities' debt, respectively.Summarized condensed financial information on a combined 100% basis related to Multifamily's investments in unconsolidated entities that are accounted for by the equity method was as follows:

Balance Sheets

(In thousands)	February 28, 2019		November 30, 2018
Assets:
Cash and cash equivalents	$	37,533	61,571
Operating properties and equipment	3,798,753		3,708,613
Other assets	43,746		40,899
	$	3,880,032	3,811,083
Liabilities and equity:
Accounts payable and other liabilities	$	186,555	199,119
Notes payable (1)	1,449,294		1,381,656
Equity	2,244,183		2,230,308
	$	3,880,032	3,811,083
Multifamily investments in unconsolidated entities	$	485,140	481,129

(1) Notes payable are net of debt issuance costs of $18.2 million and $15.7 million, as of February 28, 2019 and November 30, 2018, respectively.

Statements of Operations

	Three Months Ended
	February 28,
(In thousands)	2019		2018
Revenues	$	35,371	23,952
Costs and expenses	56,128		31,795
Other income, net	21,400		7,307
Net earnings (loss) of unconsolidated entities	$	643	(536	)
Multifamily equity in earnings (loss) from unconsolidated entities and other gain (1)	$	10,581	2,742

(1)

During the three months ended February 28, 2019, the Multifamily segment sold, through its unconsolidated entities, one operating property and an investment in an operating property resulting in the segment's $15.5 million share of gains. The gain of $11.9 million recognized on the sale of the investment in an operating property and recognition of the Company's share of deferred development fees that were capitalized at the joint venture level are included in Multifamily equity in earnings (loss) from unconsolidated entities and other gain, and are not included in net earnings (loss) of unconsolidated entities. During the three months ended February 28, 2018, the Multifamily segment sold one operating property through an unconsolidated entity resulting in the segment's $4.1 million share of gains.