Lennar Other (Tables)

9 Months Ended

Aug. 31, 2019

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



(In thousands)	August 31, 2019		November 30, 2018
Assets:
Homebuilding East	$	6,996,012	7,183,758
Homebuilding Central	2,866,868		2,522,799
Homebuilding Texas	2,428,952		2,311,760
Homebuilding West	11,003,703		10,291,385
Homebuilding Other	1,202,051		1,013,367
Financial Services	2,329,786		2,778,910
Multifamily	1,020,842		874,219
Lennar Other	552,968		588,959
Corporate and unallocated	1,058,265		1,001,024
Total assets	$	29,459,447	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					Nine Months Ended
	August 31,					August 31,
(In thousands)	2019			2018		2019		2018
Revenues:
Homebuilding East	$	1,843,670		1,701,622		4,807,825		4,181,328
Homebuilding Central	724,753			670,908		1,773,605		1,562,000
Homebuilding Texas	713,376			729,150		1,825,105		1,786,015
Homebuilding West	2,063,323			2,174,564		5,747,243		5,447,133
Homebuilding Other	93,876			9,498		104,540		35,356
Financial Services (1)	224,502			258,208		572,029		704,004
Multifamily	183,958			101,064		428,764		312,013
Lennar Other	9,600			27,555		28,919		84,572
Total revenues (2)	$	5,857,058		5,672,569		15,288,030		14,112,421
Operating earnings (loss) (3):
Homebuilding East	$	256,715		199,205		602,562		454,427
Homebuilding Central	79,209			69,018		165,479		103,192
Homebuilding Texas	78,298			70,742		185,950		122,407
Homebuilding West	259,424			292,050		722,989		656,074
Homebuilding Other (4)	(14,664		)	(22,261	)	(66,614	)	111,724
Total Homebuilding operating earnings	658,982			608,754		1,610,366		1,447,824
Financial Services	74,698			60,515		149,887		142,151
Multifamily	10,225			(3,853	)	12,700		9,734
Lennar Other	15,793			8,840		20,724		15,580
Corporate and unallocated (5)	(92,615		)	(108,338	)	(248,071	)	(389,133	)
Earnings before income taxes	$	667,083		565,918		1,545,606		1,226,156


(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 retail agency business and title insurance underwriter.


(2)	Total revenues were net of sales incentives of $330.2 million ($24,400 per home delivered) and $890.7 million ($25,400 per home delivered) for the three and nine months ended August 31, 2019, respectively, compared to $289.0 million ($22,900 per home delivered) and $717.0 million ($22,800 per home delivered) for the three and nine months ended August 31, 2018, respectively.


(3)	All Homebuilding segments were impacted by purchase accounting adjustments that totaled $84.2 million and $376.0 million for the three and nine months ended August 31, 2018, respectively.

(4)

Homebuilding Other operating loss during the nine months ended August 31, 2019 included a one-time loss of $48.9 million from the consolidation of a previously unconsolidated entity. Homebuilding Other operating earnings during the nine months ended August 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 nine months ended August 31, 2018, $12.0 million and $140.1 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)	August 31, 2019		November 30, 2018
Assets:
Cash and cash equivalents	$	228,217	188,485
Restricted cash	10,189		17,944
Receivables, net (1)	255,083		731,169
Loans held-for-sale (2)	1,228,592		1,213,889
Loans held-for-investment, net	73,366		70,216
Investments held-to-maturity	193,268		189,472
Investments available-for-sale (3)	3,597		4,161
Goodwill	215,516		237,688
Other assets (4)	121,958		125,886
	$	2,329,786	2,778,910
Liabilities:
Notes and other debts payable	$	1,156,078	1,558,702
Other liabilities (5)	299,378		309,500
	$	1,455,456	1,868,202


(1)	Receivables, net primarily related to loans sold to investors for which the Company had not yet been paid as of August 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 August 31, 2019 and November 30, 2018, other assets included mortgage loan commitments carried at fair value of $25.9 million and $16.4 million, respectively, and mortgage servicing rights carried at fair value of $23.1 million and $37.2 million, respectively.

(5)

As of August 31, 2019 and November 30, 2018, other liabilities included $63.4 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 August 31, 2019 and November 30, 2018, other liabilities also included forward contracts carried at fair value of $9.6 million and $10.4 million, respectively.

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



(In thousands)	August 31, 2019		November 30, 2018
Assets:
Cash and cash equivalents	$	16,478	7,832
Receivables (1)	78,016		73,829
Land under development	284,595		277,894
Investments in unconsolidated entities	539,697		481,129
Other assets	102,056		33,535
	$	1,020,842	874,219
Liabilities:
Accounts payable and other liabilities	$	176,914	170,616
Notes payable (2)	36,140		—
	$	213,054	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.

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



(In thousands)	August 31, 2019		November 30, 2018
Assets:
Cash and cash equivalents	$	5,362	24,334
Restricted cash	975		7,175
Real estate owned, net	2,943		25,632
Investments in unconsolidated entities	447,734		424,104
Investments held-to-maturity	60,803		59,974
Other assets	35,151		47,740
	$	552,968	588,959
Liabilities:
Notes and other debts payable	$	15,131	14,488
Other liabilities	9,496		53,020
	$	24,627	67,508