Lennar Homebuilding Investments In Unconsolidated Entities (Tables)

12 Months Ended

Nov. 30, 2022

Equity Method Investments and Joint Ventures [Abstract]

The investments in the Company's Homebuilding unconsolidated entities were as follows:


	November 30,
(In thousands)	2022		2021
Investments in unconsolidated entities (1) (2)	$	1,173,164	972,084
Underlying equity in unconsolidated entities' net assets (1)	1,504,315		1,301,719

(1)The basis difference was primarily as a result of the Company contributing its investment in three strategic joint ventures with a higher fair value than book value for an investment in the FivePoint entity.

(2)Included in the Company's recorded investments in Homebuilding unconsolidated entities is the Company's 40% ownership of FivePoint. As of November 30, 2022 and 2021, the carrying amount of the Company's investment was $382.9 million and $381.6 million, respectively.

The details of the activity was as follows:


	Years Ended November 30,
(In thousands)	2022		2021	2020
Land sales revenues (1)	$	94,513	57,944	99,935
Management fees and reimbursement of expenses, net of deferrals	20,792		16,464	2,363

(1)The Company does not include in its Homebuilding equity in loss from unconsolidated entities its pro-rata share of unconsolidated entities’ earnings resulting from land sales to its homebuilding divisions. Instead, the Company accounts for those earnings as a reduction of the cost of purchasing the land from the unconsolidated entities. This in effect defers recognition of the Company’s share of the unconsolidated entities’ earnings related to these sales until the Company delivers a home and title passes to a third-party homebuyer.

The details of the activity were as follows:


	Years Ended November 30,
(In thousands)	2022		2021	2020
General contractor services, net of deferrals	$	498,142	549,400	400,808
General contractor costs	478,620		533,398	383,649
Land sales to joint ventures	237,477		15,105	83,944
Management fee income	63,823		56,573	56,253

Details of LMV I and LMV II as of and during the year ended November 30, 2022 are included below:



(In thousands)	LMV I		LMV II
Lennar's carrying value of investment	$	217,099	293,831
Equity commitments	2,204,016		1,257,700
Equity commitments called	2,152,324		1,206,664
Lennar's equity commitments	504,016		381,000
Lennar's equity commitments called	499,919		365,807
Lennar's remaining commitments	4,097		15,193
Distributions to Lennar	25,576		12,555

Summarized condensed financial information on a combined 100% basis related to the Company's unconsolidated entities that are accounted for under the equity method was as follows:


(In thousands)	November 30, 2022
Assets:	Homebuilding		Multifamily	Lennar Other	Total
Cash and cash equivalents	$	366,276	53,121	413,698	833,095
Loans receivable	—		—	25,045	25,045
Real estate owned	—		—	213,103	213,103
Investment securities	—		—	2,543,715	2,543,715
Investments in partnerships	—		—	165,599	165,599
Inventories	5,391,285		1,000	—	5,392,285
Operating properties and equipment	56,687		7,090,294	—	7,146,981
Other assets	1,378,156		523,152	223,821	2,125,129
	$	7,192,404	7,667,567	3,584,981	18,444,952
Liabilities and equity:
Accounts payable and other liabilities	$	994,603	245,266	170,649	1,410,518

Debt (1)	1,383,302		4,318,774	333,317	6,035,393
Equity	4,814,499		3,103,527	3,081,015	10,999,041
	$	7,192,404	7,667,567	3,584,981	18,444,952
Investments in unconsolidated entities	$	1,173,164	648,126	316,523	2,137,813


(In thousands)	November 30, 2021
Assets:	Homebuilding		Multifamily	Lennar Other	Total
Cash and cash equivalents	$	460,901	25,972	430,807	917,680
Loans receivable	—		—	65,971	65,971
Real estate owned	—		—	279,200	279,200
Investment securities	—		—	2,461,788	2,461,788
Investments in partnerships	—		—	346,042	346,042
Inventories	4,666,454		—	—	4,666,454
Operating properties and equipment	44,802		6,406,500	—	6,451,302
Other assets	1,044,771		111,750	219,680	1,376,201
	$	6,216,928	6,544,222	3,803,488	16,564,638
Liabilities and equity:
Accounts payable and other liabilities	$	904,078	240,928	179,879	1,324,885

Debt (1)	1,216,721		3,407,362	399,632	5,023,715
Equity	4,096,129		2,895,932	3,223,977	10,216,038
	$	6,216,928	6,544,222	3,803,488	16,564,638
Investments in unconsolidated entities	$	972,084	654,029	346,270	1,972,383

(1)Debt noted above is net of debt issuance costs. As of November 30, 2022 and 2021, this includes $18.4 million and $11.9 million, respectively, for Homebuilding, $26.4 million and $23.4 million, respectively, for Multifamily and an immaterial amount of debt issuance costs for Lennar Other.


(In thousands)
Statement of Operations Years Ended:	Revenues		Cost and expenses	Other income (expense), net (1)	Net earnings (loss) of unconsolidated entities	Equity in earnings (loss) from unconsolidated entities
November 30, 2022	$	1,747,336	1,695,272	197,056	249,120	(36,302)
November 30, 2021	1,383,266		1,448,775	187,625	122,116	48,993
November 30, 2020	1,362,686		1,221,873	(244,680)	(103,867)	(13,939)

(1)Other income (expense), net included realized and unrealized gains (losses) on investments.