Supplemental Financial Information

6 Months Ended

May 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The indentures governing the Company’s 4.500% senior notes due 2019, 4.50% senior notes due 2019, 6.625% senior notes due 2020, 2.95% senior notes due 2020, 8.375% senior notes due 2021, 4.750% senior notes due 2021, 6.25% senior notes due 2021, 4.125% senior notes due 2022, 5.375% senior notes due 2022, 4.750% senior notes due 2022, 4.875% senior notes due 2023, 4.500% senior notes due 2024, 5.875% senior notes due 2024, 4.750% senior notes due 2025, 5.25% senior notes due 2026, 5.00% senior notes due 2027 and 4.75% senior notes due 2027 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 May 31, 2019 they were guaranteeing Lennar Corporation's letter of credit facilities and its Credit Facility, disclosed in Note 12 of the Notes to the Condensed Consolidated Financial Statements. 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 of Lennar senior notes 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 May 31, 2019 was as follows:

Condensed Consolidating Balance Sheet

May 31, 2019



(In thousands)	Lennar Corporation		Guarantor Subsidiaries	Non-Guarantor Subsidiaries	Consolidating Adjustments		Total
ASSETS
Homebuilding:
Cash and cash equivalents, restricted cash and receivables, net	$	405,826	549,492	160,642	—		1,115,960
Inventories	—		18,233,687	540,801	—		18,774,488
Investments in unconsolidated entities	—		979,605	4,078	—		983,683
Goodwill	—		3,442,359	—	—		3,442,359
Other assets	350,057		699,458	190,544	(37,094	)	1,202,965
Investments in subsidiaries	10,455,362		120,157	—	(10,575,519	)	—
Intercompany	13,167,409		—	—	(13,167,409	)	—
	24,378,654		24,024,758	896,065	(23,780,022	)	25,519,455
Financial Services	—		237,468	2,231,461	(666	)	2,468,263
Multifamily	—		—	1,046,196	—		1,046,196
Lennar Other	—		119,083	430,067	—		549,150
Total assets	$	24,378,654	24,381,309	4,603,789	(23,780,688	)	29,583,064
LIABILITIES AND EQUITY
Homebuilding:
Accounts payable and other liabilities	$	716,066	1,882,106	312,528	(37,760	)	2,872,940
Liabilities related to consolidated inventory not owned	—		346,287	—	—		346,287
Senior notes and other debts payable	8,503,284		470,107	417,550	—		9,390,941
Intercompany	—		11,290,326	1,877,083	(13,167,409	)	—
	9,219,350		13,988,826	2,607,161	(13,205,169	)	12,610,168
Financial Services	—		31,982	1,449,024	—		1,481,006
Multifamily	—		—	215,316	—		215,316
Lennar Other	—		—	30,039	—		30,039
Total liabilities	9,219,350		14,020,808	4,301,540	(13,205,169	)	14,336,529
Stockholders’ equity	15,159,304		10,360,501	215,018	(10,575,519	)	15,159,304
Noncontrolling interests	—		—	87,231	—		87,231
Total equity	15,159,304		10,360,501	302,249	(10,575,519	)	15,246,535
Total liabilities and equity	$	24,378,654	24,381,309	4,603,789	(23,780,688	)	29,583,064

Condensed Consolidating Balance Sheet

November 30, 2018



(In thousands)	Lennar Corporation		Guarantor Subsidiaries	Non-Guarantor Subsidiaries	Consolidating Adjustments		Total
ASSETS
Homebuilding:
Cash and cash equivalents, restricted cash and receivables, net	$	637,083	886,059	63,905	—		1,587,047
Inventories	—		16,679,245	389,459	—		17,068,704
Investments in unconsolidated entities	—		857,238	12,963	—		870,201
Goodwill	—		3,442,359	—	—		3,442,359
Other assets	339,307		878,582	164,848	(26,955	)	1,355,782
Investments in subsidiaries	10,562,273		89,044	—	(10,651,317	)	—
Intercompany	11,815,491		—	—	(11,815,491	)	—
	23,354,154		22,832,527	631,175	(22,493,763	)	24,324,093
Financial Services	—		232,632	2,547,167	(889	)	2,778,910
Multifamily	—		—	874,219	—		874,219
Lennar Other	—		126,725	462,234	—		588,959
Total assets	$	23,354,154	23,191,884	4,514,795	(22,494,652	)	28,566,181
LIABILITIES AND EQUITY
Homebuilding:
Accounts payable and other liabilities	$	804,232	1,977,579	303,473	(27,844	)	3,057,440
Liabilities related to consolidated inventory not owned	—		162,090	13,500	—		175,590
Senior notes and other debts payable	7,968,387		523,589	51,892	—		8,543,868
Intercompany	—		10,116,590	1,698,901	(11,815,491	)	—
	8,772,619		12,779,848	2,067,766	(11,843,335	)	11,776,898
Financial Services	—		51,535	1,816,667	—		1,868,202
Multifamily	—		—	170,616	—		170,616
Lennar Other	—		—	67,508	—		67,508
Total liabilities	8,772,619		12,831,383	4,122,557	(11,843,335	)	13,883,224
Stockholders’ equity	14,581,535		10,360,501	290,816	(10,651,317	)	14,581,535
Noncontrolling interests	—		—	101,422	—		101,422
Total equity	14,581,535		10,360,501	392,238	(10,651,317	)	14,682,957
Total liabilities and equity	$	23,354,154	23,191,884	4,514,795	(22,494,652	)	28,566,181

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

Three Months Ended May 31, 2019



(In thousands)	Lennar Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments		Total
Revenues:
Homebuilding	$	—		5,175,289		20,310		—		5,195,599
Financial Services	—			36,353		172,729		(4,866	)	204,216
Multifamily	—			—		147,412		—		147,412
Lennar Other	—			—		15,663		—		15,663
Total revenues	—			5,211,642		356,114		(4,866	)	5,562,890
Cost and expenses:
Homebuilding	—			4,561,235		19,594		6,430		4,587,259
Financial Services	—			20,829		139,510		(12,340	)	147,999
Multifamily	—			—		148,716		—		148,716
Lennar Other	—			—		3,194		—		3,194
Corporate general and administrative	74,321			527		—		1,265		76,113
Total costs and expenses	74,321			4,582,591		311,014		(4,645	)	4,963,281
Homebuilding equity in earnings from unconsolidated entities	—			19,537		77		—		19,614
Homebuilding other income (expenses), net	(222		)	(48,550	)	2,386		221		(46,165	)
Multifamily equity in loss from unconsolidated entities and other gain	—			—		(3,018	)	—		(3,018	)
Lennar Other equity in loss from unconsolidated entities	—			(4,239	)	(739	)	—		(4,978	)
Lennar Other expense, net	—			—		(5,663	)	—		(5,663	)
Earnings (loss) before income taxes	(74,543		)	595,799		38,143		—		559,399
Benefit (provision) for income taxes	18,653			(148,736	)	(10,447	)	—		(140,530	)
Equity in earnings from subsidiaries	477,362			28,703		—		(506,065	)	—
Net earnings (including net loss attributable to noncontrolling interests)	421,472			475,766		27,696		(506,065	)	418,869
Less: Net loss attributable to noncontrolling interests	—			—		(2,603	)	—		(2,603	)
Net earnings attributable to Lennar	$	421,472		475,766		30,299		(506,065	)	421,472
Other comprehensive income, net of tax:
Net unrealized gain on securities available-for-sale	$	—		—		561		—		561
Reclassification adjustments for gains included in earnings, net of tax	—			—		(176	)	—		(176	)
Total other comprehensive income, net of tax	$	—		—		385		—		385
Total comprehensive income attributable to Lennar	$	421,472		475,766		30,684		(506,065	)	421,857
Total comprehensive loss attributable to noncontrolling interests	$	—		—		(2,603	)	—		(2,603	)

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

Three Months Ended May 31, 2018



(In thousands)	Lennar Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments		Total
Revenues:
Homebuilding	$	—		5,022,769		41,228		—		5,063,997
Financial Services	—			100,257		154,473		(5,020	)	249,710
Multifamily	—			—		117,693		—		117,693
Lennar Other	—			—		27,661		—		27,661
Total revenues	—			5,123,026		341,055		(5,020	)	5,459,061
Cost and expenses:
Homebuilding	—			4,597,434		39,352		(723	)	4,636,063
Financial Services	—			89,752		110,427		(6,244	)	193,935
Multifamily	—			—		117,186		—		117,186
Lennar Other	—			—		25,127		(3,369	)	21,758
Acquisition and integration costs related to CalAtlantic	—			23,875		—		—		23,875
Corporate general and administrative	82,962			605		—		1,348		84,915
Total costs and expenses	82,962			4,711,666		292,092		(8,988	)	5,077,732
Homebuilding equity in earnings (loss) from unconsolidated entities	—			(12,789	)	119		—		(12,670	)
Homebuilding other income, net	3,978			6,889		2,980		(3,968	)	9,879
Multifamily equity in earnings from unconsolidated entities and other gain	—			—		14,281		—		14,281
Lennar Other equity in earnings from unconsolidated entities	—			444		4,116		—		4,560
Lennar Other expense, net	—			(55	)	(6,514	)	—		(6,569	)
Earnings (loss) before income taxes	(78,984		)	405,849		63,945		—		390,810
Benefit (provision) for income taxes	13,957			(74,781	)	(15,137	)	—		(75,961	)
Equity in earnings from subsidiaries	375,284			28,718		—		(404,002	)	—
Net earnings (including net earnings attributable to noncontrolling interests)	310,257			359,786		48,808		(404,002	)	314,849
Less: Net earnings attributable to noncontrolling interests	—			—		4,592		—		4,592
Net earnings attributable to Lennar	$	310,257		359,786		44,216		(404,002	)	310,257
Other comprehensive loss, net of tax:
Net unrealized loss on securities available-for-sale	$	—		—		(589	)	—		(589	)
Reclassification adjustments for gains included in net earnings, net of tax	—			—		(126	)	—		(126	)
Total other comprehensive loss, net of tax	$	—		—		(715	)	—		(715	)
Total comprehensive income attributable to Lennar	$	310,257		359,786		43,501		(404,002	)	309,542
Total comprehensive income attributable to noncontrolling interests	$	—		—		4,592		—		4,592

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

Six Months Ended May 31, 2019



(In thousands)	Lennar Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments		Total
Revenues:
Homebuilding	$	—		8,789,330		29,990		—		8,819,320
Financial Services	—			85,270		271,978		(9,721	)	347,527
Multifamily	—			—		244,806		—		244,806
Lennar Other	—			—		19,319		—		19,319
Total revenues	—			8,874,600		566,093		(9,721	)	9,430,972
Cost and expenses:
Homebuilding	—			7,787,164		31,901		7,029		7,826,094
Financial Services	—			59,207		231,778		(18,647	)	272,338
Multifamily	—			—		249,894		—		249,894
Lennar Other	—			—		4,816		—		4,816
Corporate general and administrative	151,850			1,076		—		2,530		155,456
Total costs and expenses	151,850			7,847,447		518,389		(9,088	)	8,508,598
Homebuilding equity in earnings from unconsolidated entities	—			5,586		272		—		5,858
Homebuilding other income (expenses), net	(630		)	(50,946	)	3,243		633		(47,700	)
Multifamily equity in earnings from unconsolidated entities and other gain	—			—		7,563		—		7,563
Lennar Other equity in earnings (loss) from unconsolidated entities	—			(7,585	)	10,937		—		3,352
Lennar Other expenses, net	—			—		(12,924	)	—		(12,924	)
Earnings (loss) before income taxes	(152,480		)	974,208		56,795		—		878,523
Benefit (provision) for income taxes	38,090			(242,575	)	(15,745	)	—		(220,230	)
Equity in earnings from subsidiaries	775,772			33,476		—		(809,248	)	—
Net earnings (including net earnings attributable to noncontrolling interests)	661,382			765,109		41,050		(809,248	)	658,293
Less: Net loss attributable to noncontrolling interests	—			—		(3,089	)	—		(3,089	)
Net earnings attributable to Lennar	$	661,382		765,109		44,139		(809,248	)	661,382
Other comprehensive income, net of tax:
Net unrealized gain on securities available-for-sale	$	—		—		769		—		769
Reclassification adjustments for gains included in earnings, net of tax	—			—		(176	)	—		(176	)
Total other comprehensive income, net of tax	$	—		—		593		—		593
Total comprehensive income attributable to Lennar	$	661,382		765,109		44,732		(809,248	)	661,975
Total comprehensive income attributable to noncontrolling interests	$	—		—		(3,089	)	—		(3,089	)

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

Six Months Ended May 31, 2018



(In thousands)	Lennar Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments		Total
Revenues:
Homebuilding	$	—		7,675,963		50,127		—		7,726,090
Financial Services	—			173,269		282,522		(9,994	)	445,797
Multifamily	—			—		210,949		—		210,949
Lennar Other	—			—		57,016		—		57,016
Total revenues	—			7,849,232		600,614		(9,994	)	8,439,852
Cost and expenses:
Homebuilding	—			6,991,238		51,615		(2,757	)	7,040,096
Financial Services	—			164,228		212,324		(12,393	)	364,159
Multifamily	—			—		214,385		—		214,385
Lennar Other	—			—		51,735		(3,369	)	48,366
Acquisition and integration costs related to CalAtlantic	—			128,070		—		—		128,070
Corporate general and administrative	148,885			1,209		—		2,631		152,725
Total costs and expenses	148,885			7,284,745		530,059		(15,888	)	7,947,801
Homebuilding equity in loss from unconsolidated entities	—			(26,761	)	(37	)	—		(26,798	)
Homebuilding other income, net	5,913			175,252		4,603		(5,894	)	179,874
Multifamily equity in earnings from unconsolidated entities	—			—		17,023		—		17,023
Lennar Other equity in earnings from unconsolidated entities	—			285		13,230		—		13,515
Lennar Other expense, net	—			(122	)	(15,305	)	—		(15,427	)
Earnings (loss) before income taxes	(142,972		)	713,141		90,069		—		660,238
Benefit (provision) for income taxes	45,522			(225,224	)	(28,870	)	—		(208,572	)
Equity in earnings from subsidiaries	543,922			38,918		—		(582,840	)	—
Net earnings (including net earnings attributable to noncontrolling interests)	446,472			526,835		61,199		(582,840	)	451,666
Less: Net earnings attributable to noncontrolling interests	—			—		5,194		—		5,194
Net earnings attributable to Lennar	$	446,472		526,835		56,005		(582,840	)	446,472
Other comprehensive loss, net of tax:
Net unrealized loss on securities available-for-sale	$	—		—		(1,247	)	—		(1,247	)
Reclassification adjustments for gains included in earnings, net of tax	—			—		(126	)	—		(126	)
Total other comprehensive loss, net of tax	$	—		—		(1,373	)	—		(1,373	)
Total comprehensive income attributable to Lennar	$	446,472		526,835		54,632		(582,840	)	445,099
Total comprehensive income attributable to noncontrolling interests	$	—		—		5,194		—		5,194

Condensed Consolidating Statement of Cash Flows

Six Months Ended May 31, 2019



(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)	$	661,382		765,109		41,050		(809,248	)	658,293
Distributions of earnings from guarantor and non-guarantor subsidiaries	775,772			33,476		—		(809,248	)	—
Other adjustments to reconcile net earnings (including net loss attributable to noncontrolling interests) to net cash provided by operating activities	(819,869		)	(1,222,713	)	145,151		809,248		(1,088,183	)
Net cash provided by (used in) operating activities	617,285			(424,128	)	186,201		(809,248	)	(429,890	)
Cash flows from investing activities:
Investments in and contributions to unconsolidated entities, net of distributions of capital	—			(99,052	)	11,716		—		(87,336	)
Proceeds from sales of real estate owned	—			—		4,210		—		4,210
Proceeds from sale of investment in unconsolidated entity	—			—		17,790		—		17,790
Proceeds from sales of Financial Services' businesses	—			21,317		3,129		—		24,446
Other	(170		)	(30,185	)	(20,341	)	—		(50,696	)
Intercompany	(1,263,527		)	—		—		1,263,527		—
Net cash provided by (used in) investing activities	(1,263,697		)	(107,920	)	16,504		1,263,527		(91,586	)
Cash flows from financing activities:
Net borrowings under unsecured revolving credit facilities	550,000			—		—		—		550,000
Net borrowings (repayments) under warehouse facilities	—			170		(365,354	)	—		(365,184	)
Net borrowings (repayments) on convertible senior notes, other borrowings, other liabilities, and other notes payable	—			(101,052	)	3,657		—		(97,395	)
Net repayments related to noncontrolling interests	—			—		(14,380	)	—		(14,380	)
Common stock:
Issuances	634			—		—		—		634
Repurchases	(101,229		)	—		—		—		(101,229	)
Dividends	(25,877		)	(765,109	)	(44,139	)	809,248		(25,877	)
Intercompany	—			1,057,135		206,392		(1,263,527	)	—
Net cash provided by (used in) financing activities	423,528			191,144		(213,824	)	(454,279	)	(53,431	)
Net decrease in cash and cash equivalents and restricted cash	(222,884		)	(340,904	)	(11,119	)	—		(574,907	)
Cash and cash equivalents and restricted cash at beginning of period	624,694			721,603		249,681		—		1,595,978
Cash and cash equivalents and restricted cash at end of period	$	401,810		380,699		238,562		—		1,021,071

Condensed Consolidating Statement of Cash Flows

Six Months Ended May 31, 2018



(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)	$	446,472		526,835		61,199		(582,840	)	451,666
Distributions of earnings from guarantor and non-guarantor subsidiaries	543,922			38,918		—		(582,840	)	—
Other adjustments to reconcile net earnings (including net earnings attributable to noncontrolling interests) to net cash provided by (used in) operating activities	(712,549		)	(107,511	)	(194,932	)	582,840		(432,152	)
Net cash provided by (used in) operating activities	277,845			458,242		(133,733	)	(582,840	)	19,514
Cash flows from investing activities:
Investments in and contributions to unconsolidated entities, net of distributions of capital	—			24,013		(14,043	)	—		9,970
Proceeds from sales of real estate owned	—			—		21,658		—		21,658
Proceeds from sale of investment in unconsolidated entity	—			175,179		—		—		175,179
Purchases of commercial mortgage-backed securities bonds	—			—		(31,068	)	—		(31,068	)
Acquisition, net of cash and restricted cash acquired	(1,140,367		)	23,035		39,368		—		(1,077,964	)
Other	(21,568		)	(5,933	)	(21,588	)	—		(49,089	)
Distributions of capital from guarantor and non-guarantor subsidiaries	65,000			20,000		—		(85,000	)	—
Intercompany	(1,034,631		)	—		—		1,034,631		—
Net cash provided by (used in) investing activities	(2,131,566		)	236,294		(5,673	)	949,631		(951,314	)
Cash flows from financing activities:
Net borrowings (repayments) under unsecured revolving credit facilities	950,000			(454,700	)	—		—		495,300
Net borrowings (repayments) under warehouse facilities	—			(54	)	7,764		—		7,710
Debt issuance costs	(9,109		)	—		(2,992	)	—		(12,101	)
Net payments on other borrowings, other liabilities, Lennar Other senior notes and other notes payable	—			(52,999	)	(295,046	)	—		(348,045	)
Redemption of senior notes	(484,332		)	(90,668	)	—		—		(575,000	)
Conversions and exchanges of convertible senior notes	—			(59,145	)	—		—		(59,145	)
Net payments related to noncontrolling interests	—			—		(26,530	)	—		(26,530	)
Common stock:
Issuances	3,184			—		—		—		3,184
Repurchases	(28,526		)	—		—		—		(28,526	)
Dividends	(22,780		)	(591,835	)	(76,005	)	667,840		(22,780	)
Intercompany	—			624,070		410,561		(1,034,631	)	—
Net cash provided by (used in) financing activities	408,437			(625,331	)	17,752		(366,791	)	(565,933	)
Net (decrease) increase in cash and cash equivalents and restricted cash	(1,445,284		)	69,205		(121,654	)	—		(1,497,733	)
Cash and cash equivalents and restricted cash at beginning of period	1,938,555			366,946		388,583		—		2,694,084
Cash and cash equivalents and restricted cash at end of period	$	493,271		436,151		266,929		—		1,196,351