The Company's homebuilding operations construct and sell homes primarily for first-time, move-up and active adult homebuyers primarily under the Lennar brand name. In addition, the Company's homebuilding operations purchase, develop and sell land to third parties. In connection with the CalAtlantic acquisition, the Company experienced significant growth in its operations. As a result, in 2018, the Company's chief operating decision makers ("CODM") reassessed how they evaluate the business and allocate resources. The CODM manage and assess the Company’s performance at a regional level. Therefore, in 2018 the Company performed an assessment of its operating segments in accordance with ASC 280, Segment Reporting, (“ASC 280”) and determined that each of its four homebuilding regions, financial services operations, multifamily operations and Rialto operations are its operating segments. Prior to this change, in accordance with the aggregation criteria defined in ASC 280, the Company’s operating segments were aggregated into reportable segments, based primarily upon similar economic characteristics, geography and product type. In addition, in the first quarter of 2019, as a result of the reclassification of RMF and certain other Rialto assets from the Rialto segment to the Financial Services segment effective December 1, 2018, the Company has renamed the Rialto segment as "Lennar Other" and included in this segment certain strategic technology investments, which were reclassified from Homebuilding to Lennar Other. Prior periods have been reclassified to conform with the 2019 presentation. The Company’s reportable segments consist of:

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, other revenues from management fees and forfeited deposits, equity in earnings (loss) from unconsolidated entities and other income (expense), net, less the cost of homes sold and land sold, and selling, general and administrative expenses incurred by the segment.

Operations of the Financial Services segment include primarily mortgage financing, title and closing services primarily for buyers of the Company’s homes. It also includes originating and selling into securitizations commercial mortgage loans through its RMF business. The Financial Services segment sells substantially all of the loans it originates within a short period of time 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. Financial Services’ operating earnings consist of revenues generated primarily from mortgage financing, title and closing services, and property and casualty insurance, less the cost of such services and certain selling, general and administrative expenses incurred by the segment. The Financial Services segment operates generally in the same states as the Company’s homebuilding operations as well as in other states.

Operations of the Multifamily segment include revenues generated from the sales of land, revenue from construction activities, and management and promote fees generated from joint ventures and equity in earnings (loss) from unconsolidated entities and other gains (which includes sales of buildings), less the cost of sales of land sold, expenses related to construction activities and general and administrative expenses.

Operations of the Lennar Other segment include operating earnings (loss) consisting of revenues generated primarily from the Company's share of carried interests in the Rialto fund investments retained after the sale of Rialto's asset and investment management platform, along with equity in earnings (loss) from the Rialto fund investments and strategic technology investments, and other income (expense), net from the remaining assets related to the Company's former Rialto segment.

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, 2018, except that as a result of the adoption of ASC 606 as of December 1, 2018, the Company updated its revenue recognition policies as noted in Note 1 of the Notes to the Condensed Consolidated Financial Statements. The Company's 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.



(In thousands)	May 31, 2019		November 30, 2018
Assets:
Homebuilding East	$	6,987,845	7,183,758
Homebuilding Central	2,782,430		2,522,799
Homebuilding Texas	2,449,590		2,311,760
Homebuilding West	10,954,282		10,291,385
Homebuilding Other	1,238,115		1,013,367
Financial Services	2,468,263		2,778,910
Multifamily	1,046,196		874,219
Lennar Other	549,150		588,959
Corporate and unallocated	1,107,193		1,001,024
Total assets	$	29,583,064	28,566,181
Homebuilding goodwill	$	3,442,359	3,442,359
Financial Services goodwill (1)	$	215,516	237,688



	Three Months Ended					Six Months Ended
	May 31,					May 31,
(In thousands)	2019			2018		2019		2018
Revenues:
Homebuilding East	$	1,737,342		1,566,743		2,964,155		2,479,706
Homebuilding Central	613,785			636,523		1,048,852		891,092
Homebuilding Texas	693,212			700,767		1,111,729		1,056,865
Homebuilding West	2,143,023			2,144,613		3,683,920		3,272,569
Homebuilding Other	8,237			15,351		10,664		25,858
Financial Services (1)	204,216			249,709		347,527		445,796
Multifamily	147,412			117,693		244,806		210,949
Lennar Other	15,663			27,662		19,319		57,017
Total revenues (2)	$	5,562,890		5,459,061		9,430,972		8,439,852
Operating earnings (loss) (3):
Homebuilding East	$	210,464		153,893		345,847		255,222
Homebuilding Central	55,344			25,138		86,270		34,174
Homebuilding Texas	75,374			37,652		107,652		51,665
Homebuilding West	272,904			224,595		463,565		364,024
Homebuilding Other (4)	(32,297		)	(16,135	)	(51,950	)	133,985
Total Homebuilding operating earnings	581,789			425,143		951,384		839,070
Financial Services	56,217			55,774		75,189		81,636
Multifamily	(4,322		)	14,788		2,475		13,587
Lennar Other	1,828			3,895		4,931		6,740
Corporate and unallocated (5)	(76,113		)	(108,790	)	(155,456	)	(280,795	)
Earnings before income taxes	$	559,399		390,810		878,523		660,238



(In thousands)	May 31, 2019		November 30, 2018
Assets:
Cash and cash equivalents	$	171,892	188,485
Restricted cash	14,868		17,944
Receivables, net (1)	230,452		731,169
Loans held-for-sale (2)	1,420,275		1,213,889
Loans held-for-investment, net	76,248		70,216
Investments held-to-maturity	199,412		189,472
Investments available-for-sale (3)	3,356		4,161
Goodwill	215,516		237,688
Other assets (4)	136,244		125,886
	$	2,468,263	2,778,910
Liabilities:
Notes and other debts payable	$	1,214,017	1,558,702
Other liabilities (5)	266,989		309,500
	$	1,481,006	1,868,202

In connection with the sale of the majority of its retail title agency business and title insurance underwriter in the first quarter of 2019, the Company provided seller financing and received a substantial minority equity ownership stake in the buyer. The combination of both the equity and debt components of this transaction caused the transaction not to meet the accounting requirements for sale treatment and, therefore, the Company is required to consolidate the buyer’s results at this time.

At May 31, 2019, the Financial Services warehouse facilities used to fund residential mortgages were as follows:



(In thousands)	Maximum Aggregate Commitment
364-day warehouse repurchase facility that matures June 2019 (1)	$	700,000
364-day warehouse repurchase facility that matures August 2019 (2)	300,000
364-day warehouse repurchase facility that matures October 2019 (3)	500,000
364-day warehouse repurchase facility that matures March 2020 (4)	300,000
Total	$	1,800,000

The Financial Services segment uses these facilities to finance its residential 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 $882.0 million and $1.3 billion at May 31, 2019 and November 30, 2018, respectively, and were collateralized by residential mortgage loans and receivables on loans sold to investors but not yet paid for with outstanding principal balances of $911.5 million and $1.3 billion at May 31, 2019 and November 30, 2018, 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

Substantially all of the residential loans the 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 residential 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 Financial Services’ liabilities in the Company's condensed consolidated balance sheets.



	Three Months Ended					Six Months Ended
	May 31,					May 31,
(In thousands)	2019			2018		2019		2018
Loan origination liabilities, beginning of period	$	6,697		27,110		48,584		22,543
Provision for losses	914			990		1,587		1,637
Origination liabilities assumed related to CalAtlantic acquisition	—			—		—		3,959
Payments/settlements	(187		)	(84	)	(42,747	)	(123	)
Loan origination liabilities, end of period	$	7,424		28,016		7,424		28,016

During the six months ended May 31, 2019, RMF originated commercial loans with a total principal balance of $720.6 million, of which $705.3 million were recorded as loans held-for-sale, and sold $500.5 million of commercial loans into five separate securitizations. As of May 31, 2019, $61.0 million of originated loans were sold into a securitization trust but not settled and thus were included as receivables, net. As of November 30, 2018, there were no unsettled transactions.

At May 31, 2019, the RMF warehouse facilities were as follows:



(In thousands)	Maximum Aggregate Commitment
364-day warehouse repurchase facility that matures November 2019	$	200,000
364-day warehouse repurchase facility that matures December 2019	250,000
364-day warehouse repurchase facility that matures December 2019	200,000
364-day warehouse repurchase facility that matures December 2019	200,000
Total - Loans origination and securitization business	$	850,000
Warehouse repurchase facility that matures December 2019 (two - one year extensions) (1)	50,000
Total	$	900,000

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. If the facilities are not renewed or replaced, the borrowings under the lines of credit will be paid off by selling the loans held-for-sale to investors. Without the facilities, the Financial Services segment would have to use cash from operations and other funding sources to finance its lending activities.

At May 31, 2019 and November 30, 2018, the carrying value of Financial Services' commercial mortgage-backed securities ("CMBS") was $167.0 million and $137.0 million, respectively. These securities were purchased at discounts ranging from 6% to 84% with coupon rates ranging from 2.0% to 5.3%, stated and assumed final distribution dates between October 2027 and December 2028, and stated maturity dates between October 2050 and December 2051. The Financial Services segment reviews changes in estimated cash flows periodically to determine if an other-than-temporary impairment has occurred on its CMBS. Based on the segment’s assessment, no impairment charges were recorded during either the three or the six months ended May 31, 2019 or 2018. The Financial Services segment classifies these securities as held-to-maturity based on its intent and ability to hold the securities until maturity. The Company has financing agreements to finance CMBS that have been purchased as investments by the Financial Services segment. At May 31, 2019 and November 30, 2018, the carrying amount, net of debt issuance costs, of outstanding debt in these agreements was $155.4 million and $123.7 million, respectively, and the interest is incurred at a fixed rate of 3.2% to 4.1%.

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



(In thousands)	May 31, 2019		November 30, 2018
Assets:
Cash and cash equivalents	$	5,203	7,832
Receivables (1)	80,270		73,829
Land under development	347,989		277,894
Investments in unconsolidated entities	510,223		481,129
Other assets	102,511		33,535
	$	1,046,196	874,219
Liabilities:
Accounts payable and other liabilities	$	175,654	170,616
Notes payable (2)	39,662		—
	$	215,316	170,616

The unconsolidated entities in which the 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 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. 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 increase 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 May 31, 2019 and November 30, 2018, the fair value of the completion guarantees was immaterial. Additionally, as of May 31, 2019 and November 30, 2018, the Multifamily segment had $1.2 million and $4.6 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 are included in the disclosure in Note 12 related to the Company's performance and financial letters of credit. As of both May 31, 2019 and November 30, 2018, Multifamily segment's unconsolidated entities had non-recourse debt with completion guarantees of $1.0 billion.

In many instances, the Multifamily segment is appointed as the construction, development and property manager for certain of its Multifamily unconsolidated entities and receives fees for performing this function. During the three and six months ended May 31, 2019, the Multifamily segment recorded fee income, net of deferrals, from its unconsolidated entities of $13.3 million and $26.4 million, respectively. During the three and six months ended May 31, 2018, the Multifamily segment recorded fee income, net of deferrals, from its unconsolidated entities of $12.4 million and $23.9 million, respectively.

The 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 and six months ended May 31, 2019, the Multifamily segment provided general contractor services, net of deferrals, totaling $99.2 million and $181.6 million, respectively, which were partially offset by costs related to those services of $95.2 million and $174.6 million, respectively. During the three and six months ended May 31, 2018, the Multifamily segment provided general contractor services, net of deferrals, totaling $97.0 million and $178.8 million, respectively, which were partially offset by costs related to those services of $93.6 million and $172.2 million, respectively.

Lennar Multifamily Venture I ("LMV I") 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 six months ended May 31, 2019, $121.8 million in equity commitments were called, of which the Company contributed its portion of $30.2 million. During the six months ended May 31, 2019, the Company received $9.5 million of distributions as a return of capital from the LMV I. As of May 31, 2019, $1.9 billion of the $2.2 billion in equity commitments had been called, of which the Company had contributed $471.1 million, representing its pro-rata portion of the called equity, resulting in a remaining equity commitment for the Company of $32.9 million. As of May 31, 2019 and November 30, 2018, the carrying value of the Company's investment in the LMV I was $395.4 million and $383.4 million, respectively.

In March 2018, the Multifamily segment completed the first closing of a second Multifamily Venture, Multifamily Venture II LP ("LMV II"), for the development, construction and property management of class-A multifamily assets. During the three months ended May 31, 2019, LMV II's equity commitments were increased by an additional $471 million, including a $126 million additional co-investment commitment by Lennar. As of May 31, 2019, LMV II had approximately $1.3 billion of equity commitments, including a $381 million co-investment commitment by Lennar comprised of cash, undeveloped land and preacquisition costs. During the six months ended May 31, 2019, $138.3 million in equity commitments were called, of which the Company contributed $23.5 million, which was made up of $64.5 million of inventory and cash contributions, offset by $40.9 million of distributions as a return of capital resulting in a remaining commitment for the Company of $276.3 million. As of May 31, 2019, $349.4 million of the $1.3 billion in equity commitments had been called. As of May 31, 2019 and November 30, 2018, the carrying value of the Company's investment in LMV II was $85.0 million and $63.0 million, respectively. The difference between the Company's net contributions and the carrying value of the Company's investments was related to a basis difference. LMV II was seeded initially with eight undeveloped multifamily assets that were previously purchased by the Multifamily segment totaling approximately 3,000 apartments with projected project costs of approximately $1.3 billion. As of May 31, 2019, LMV II was seeded with ten undeveloped assets totaling approximately 3,800 apartments with projected costs of approximately $1.6 billion. Subsequent to May 31, 2019, the Multifamily segment announced the final closing of LMV II with $1.3 billion of equity commitments.

Balance Sheets



(Dollars in thousands)	May 31, 2019		November 30, 2018
Assets:
Cash and cash equivalents	$	28,217	61,571
Operating properties and equipment	4,063,560		3,708,613
Other assets	50,227		40,899
	$	4,142,004	3,811,083
Liabilities and equity:
Accounts payable and other liabilities	$	190,785	199,119
Notes payable (1)	1,596,850		1,381,656
Equity	2,354,369		2,230,308
	$	4,142,004	3,811,083
Multifamily investments in unconsolidated entities	$	510,223	481,129



	Three Months Ended				Six Months Ended
	May 31,				May 31,
(Dollars in thousands)	2019			2018	2019		2018
Revenues	$	38,609		27,121	73,980		51,073
Costs and expenses	55,085			43,482	111,213		75,277
Other income, net	—			31,562	21,400		38,869
Net earnings (loss) of unconsolidated entities	$	(16,476	)	15,201	(15,833	)	14,665
Multifamily equity in earnings (loss) from unconsolidated entities and other gain (1)	$	(3,018	)	14,281	7,563		17,023

During the six months ended May 31, 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 and six months ended May 31, 2018, the Multifamily segment sold two and three operating properties, respectively, through its unconsolidated entities resulting in the segment's $17.4 million and $21.5 million share of gains, respectively.



(In thousands)	May 31, 2019		November 30, 2018
Assets:
Cash and cash equivalents	$	15,768	24,334
Restricted cash	975		7,175
Real estate owned, net	6,758		25,632
Investments in unconsolidated entities	429,943		424,104
Investments held-to-maturity	60,449		59,974
Other assets	35,257		47,740
	$	549,150	588,959
Liabilities:
Notes and other debts payable	$	15,178	14,488
Other liabilities	14,861		53,020
	$	30,039	67,508

At May 31, 2019 and November 30, 2018, the carrying value of Lennar Other's CMBS was $60.4 million and $60.0 million, respectively. These securities were purchased at discounts ranging from 6.5% to 86.1% with coupon rates ranging from 1.3% to 4.0%, stated and assumed final distribution dates between November 2020 and October 2026, and stated maturity dates between November 2049 and March 2059. The Company reviews changes in estimated cash flows periodically to determine if an other-than-temporary impairment has occurred on its CMBS. Based on the Company’s assessment, no impairment charges were recorded during either the three or the six months ended May 31, 2019 or 2018. The Company classifies these securities as held-to-maturity based on its intent and ability to hold the securities until maturity. The Company has financing agreements to finance CMBS that have been purchased as investments by the segment. At May 31, 2019 and November 30, 2018, the carrying amount, net of debt issuance costs, of outstanding debt in these agreements was $13.3 million and $12.6 million, respectively, and the interest is incurred at a rate of 4.7% to 4.8%.