Operating and Reporting Segments (Tables)

6 Months Ended

May 31, 2019

Disclosure Of Financial Information Relating To Company's Operations

Financial information relating to the Company’s operations was as follows:



(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


(1)	Decrease in goodwill related to the Financial Services' segment sale of substantially all of its retail mortgage and its real estate brokerage business.



	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


(1)	Financial Services revenues are lower period over period primarily due to the loss of revenues as a result of the sales of substantially all of the segment's retail mortgage business and the segment's real estate brokerage business.


(2)	Total revenues were net of sales incentives of $338.1 million ($26,600 per home delivered) and $560.4 million ($26,100 per home delivered) for the three and six months ended May 31, 2019, respectively, compared to $278.1 million ($23,000 per home delivered) and $428.0 million ($22,800 per home delivered) for the three and six months ended May 31, 2018, respectively.


(3)	All Homebuilding segments were impacted by purchase accounting adjustments that totaled $236.8 million and $291.9 million for the three and six months ended May 31, 2018, respectively.

(4)

Homebuilding Other operating earnings during the three and six months ended May 31, 2019 included a one-time loss of $48.9 million from the consolidation of a previously unconsolidated entity, partially offset by equity in earnings from one Homebuilding unconsolidated entity. Homebuilding Other operating earnings during the six months ended May 31, 2018 included $164.9 million related to a gain on the sale of an 80% interest in one of Homebuilding's strategic joint ventures, Treasure Island Holdings.

(5)

Corporate and unallocated includes corporate, general and administrative expenses, and for the three and six months ended May 31, 2018, $23.9 million and $128.1 million, respectively, of acquisition and integration costs related to the CalAtlantic acquisition.

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



(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


(1)	Receivables, net primarily related to loans sold to investors for which the Company had not yet been paid as of May 31, 2019 and November 30, 2018, respectively.


(2)	Loans held-for-sale related to unsold residential and commercial loans carried at fair value.


(3)	Investments available-for-sale are carried at fair value with changes in fair value recorded as a component of accumulated other comprehensive income (loss) on the condensed consolidated balance sheet.


(4)	As of May 31, 2019 and November 30, 2018, other assets included mortgage loan commitments carried at fair value of $25.2 million and $16.4 million, respectively, and mortgage servicing rights carried at fair value of $29.4 million and $37.2 million, respectively.

(5)

As of May 31, 2019 and November 30, 2018, other liabilities included $61.0 million and $60.3 million, respectively, of certain of the Company’s self-insurance reserves related to construction defects, general liability and workers’ compensation. In addition, as of May 31, 2019 and November 30, 2018, other liabilities also included forward contracts carried at fair value of $11.3 million and $10.4 million, respectively.

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


(1)	Receivables primarily related to general contractor services, net of deferrals and management fee income receivables due from unconsolidated entities.

(2)

Notes payable are net of debt issuance costs.

e assets and liabilities related to Lennar Other were as follows:



(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