Document And Entity Information
Document And Entity Information | 6 Months Ended |
May 31, 2019shares | |
Class of Stock [Line Items] | |
Entity Registrant Name | LENNAR CORP /NEW/ |
Entity Central Index Key | 0000920760 |
Current Fiscal Year End Date | --11-30 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | May 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Entity Emerging Growth Company | false |
Entity Small Business | false |
Entity Current Reporting Status | Yes |
Entity Shell Company | false |
Class A Common Stock | |
Class of Stock [Line Items] | |
Entity Common Stock, Shares Outstanding | 284,403,290 |
Class B Common Stock | |
Class of Stock [Line Items] | |
Entity Common Stock, Shares Outstanding | 37,743,090 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | May 31, 2019 | Nov. 30, 2018 | |
Inventories: | |||
Total assets | [1] | $ 29,583,064 | $ 28,566,181 |
LIABILITIES AND EQUITY | |||
Total liabilities | [2] | 14,336,529 | 13,883,224 |
Stockholders' equity: | |||
Preferred stock | [2] | 0 | 0 |
Additional paid-in capital | [2] | 8,529,828 | 8,496,677 |
Retained earnings | [2] | 7,132,908 | 6,487,650 |
Treasury stock, at cost; May 31, 2019 - 10,630,966 shares of Class A common stock and 1,699,559 shares of Class B common stock; November 30, 2018 - 8,498,203 shares of Class A common stock and 1,698,424 shares of Class B common stock | [2] | (537,106) | (435,869) |
Accumulated other comprehensive income (loss) | [2] | 227 | (366) |
Total stockholders’ equity | [2] | 15,159,304 | 14,581,535 |
Noncontrolling interests | [2] | 87,231 | 101,422 |
Total equity | [2] | 15,246,535 | 14,682,957 |
Total liabilities and equity | [2] | 29,583,064 | 28,566,181 |
Class A Common Stock | |||
Stockholders' equity: | |||
Common stock | [2] | 29,503 | 29,499 |
Class B Common Stock | |||
Stockholders' equity: | |||
Common stock | [2] | 3,944 | 3,944 |
Homebuilding | |||
ASSETS | |||
Cash and cash equivalents | [1] | 800,678 | 1,337,807 |
Restricted cash | [1] | 11,687 | 12,399 |
Receivables, net | [1] | 303,595 | 236,841 |
Inventories: | |||
Finished homes and construction in progress | [1] | 10,045,155 | 8,681,357 |
Land and land under development | [1] | 8,334,678 | 8,178,388 |
Consolidated inventory not owned | [1] | 394,655 | 208,959 |
Total inventories | [1] | 18,774,488 | 17,068,704 |
Investments in unconsolidated entities | [1] | 983,683 | 870,201 |
Goodwill | [1] | 3,442,359 | 3,442,359 |
Other assets | [1] | 1,202,965 | 1,355,782 |
Total assets | [1] | 25,519,455 | 24,324,093 |
LIABILITIES AND EQUITY | |||
Accounts payable | [2] | 1,067,984 | 1,154,782 |
Liabilities related to consolidated inventory not owned | [2] | 346,287 | 175,590 |
Senior notes and other debts payable | [2] | 9,390,941 | 8,543,868 |
Other liabilities | [2] | 1,804,956 | 1,902,658 |
Total liabilities | [2] | 12,610,168 | 11,776,898 |
Financial Services | |||
ASSETS | |||
Cash and cash equivalents | 171,892 | 188,485 | |
Restricted cash | 14,868 | 17,944 | |
Receivables, net | 230,452 | 731,169 | |
Inventories: | |||
Goodwill | 215,516 | 237,688 | |
Other assets | 136,244 | 125,886 | |
Total assets | [1] | 2,468,263 | 2,778,910 |
LIABILITIES AND EQUITY | |||
Other liabilities | 266,989 | 309,500 | |
Total liabilities | [2] | 1,481,006 | 1,868,202 |
Multifamily | |||
ASSETS | |||
Cash and cash equivalents | 5,203 | 7,832 | |
Receivables, net | 80,270 | 73,829 | |
Inventories: | |||
Land and land under development | 347,989 | 277,894 | |
Investments in unconsolidated entities | 510,223 | 481,129 | |
Other assets | 102,511 | 33,535 | |
Total assets | [1] | 1,046,196 | 874,219 |
LIABILITIES AND EQUITY | |||
Total liabilities | [2] | 215,316 | 170,616 |
Lennar Other | |||
ASSETS | |||
Cash and cash equivalents | 15,768 | 24,334 | |
Restricted cash | 975 | 7,175 | |
Inventories: | |||
Investments in unconsolidated entities | 429,943 | 424,104 | |
Other assets | 35,257 | 47,740 | |
Total assets | [1] | 549,150 | 588,959 |
LIABILITIES AND EQUITY | |||
Other liabilities | 14,861 | 53,020 | |
Total liabilities | [2] | 30,039 | 67,508 |
Variable Interest Entity, Primary Beneficiary | |||
Inventories: | |||
Total assets | 1,400,000 | 666,200 | |
LIABILITIES AND EQUITY | |||
Total liabilities | 928,900 | 242,500 | |
Variable Interest Entity, Primary Beneficiary | Homebuilding | |||
ASSETS | |||
Cash and cash equivalents | 52,900 | 57,600 | |
Receivables, net | 103,300 | 200 | |
Inventories: | |||
Finished homes and construction in progress | 240,100 | 81,700 | |
Land and land under development | 301,000 | 293,100 | |
Consolidated inventory not owned | 394,700 | 209,000 | |
Investments in unconsolidated entities | 4,100 | 3,800 | |
Other assets | 10,400 | 10,500 | |
LIABILITIES AND EQUITY | |||
Accounts payable | 17,300 | 11,400 | |
Liabilities related to consolidated inventory not owned | 346,300 | 175,600 | |
Senior notes and other debts payable | [2] | 370,700 | 51,900 |
Other liabilities | 1,700 | 2,600 | |
Variable Interest Entity, Primary Beneficiary | Financial Services | |||
Inventories: | |||
Other assets | 187,200 | ||
LIABILITIES AND EQUITY | |||
Total liabilities | 190,600 | ||
Variable Interest Entity, Primary Beneficiary | Multifamily | |||
Inventories: | |||
Total assets | 50,800 | ||
LIABILITIES AND EQUITY | |||
Total liabilities | 1,000 | ||
Variable Interest Entity, Primary Beneficiary | Lennar Other | |||
Inventories: | |||
Total assets | 7,200 | 10,300 | |
LIABILITIES AND EQUITY | |||
Total liabilities | $ 1,300 | $ 1,000 | |
[1] | Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities ("VIEs") and liabilities of consolidated VIEs as to which neither Lennar Corporation, or any of its subsidiaries, has any obligations. As of May 31, 2019 , total assets include $1.4 billion related to consolidated VIEs of which $52.9 million is included in Homebuilding cash and cash equivalents, $103.3 million in Homebuilding receivables, net, $240.1 million in Homebuilding finished homes and construction in progress, $301.0 million in Homebuilding land and land under development, $394.7 million in Homebuilding consolidated inventory not owned, $4.1 million in Homebuilding investments in unconsolidated entities, $10.4 million in Homebuilding other assets, $187.2 million in Financial Services assets, $50.8 million in Multifamily assets and $7.2 million in Lennar Other assets. As of November 30, 2018 , total assets include $666.2 million related to consolidated VIEs of which $57.6 million is included in Homebuilding cash and cash equivalents, $0.2 million in Homebuilding receivables, net, $81.7 million in Homebuilding finished homes and construction in progress, $293.1 million in Homebuilding land and land under development, $209.0 million in Homebuilding consolidated inventory not owned, $3.8 million in Homebuilding investments in unconsolidated entities, $10.5 million in Homebuilding other assets and $10.3 million in Lennar Other assets. | ||
[2] | Under certain provisions of ASC 810, the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated VIEs and liabilities of consolidated VIEs as to which neither Lennar Corporation, or any of its subsidiaries, has any obligations. As of May 31, 2019 , total liabilities include $928.9 million related to consolidated VIEs as to which there was no recourse against the Company, of which $17.3 million is included in Homebuilding accounts payable, $370.7 million in Homebuilding senior notes and other debts payable, $346.3 million in Homebuilding liabilities related to consolidated inventory not owned, $1.7 million in Homebuilding other liabilities, $190.6 million in Financial Services liabilities, $1.0 million in Multifamily liabilities and $1.3 million in Lennar Other liabilities. As of November 30, 2018 , total liabilities include $242.5 million related to consolidated VIEs as to which there was no recourse against the Company, of which $11.4 million is included in Homebuilding accounts payable, $51.9 million in Homebuilding senior notes and other debt payable, $175.6 million in Homebuilding liabilities related to consolidated inventory not owned, $2.6 million in Homebuilding other liabilities and $1.0 million in Lennar Other liabilities. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | May 31, 2019 | Nov. 30, 2018 | |
Total assets | [1] | $ 29,583,064 | $ 28,566,181 |
Total liabilities | [2] | $ 14,336,529 | $ 13,883,224 |
Class A Common Stock | |||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 | |
Common stock, shares authorized | 400,000,000 | 400,000,000 | |
Common stock, shares issued | 295,034,256 | 294,992,562 | |
Treasury stock, shares | 10,630,966 | 8,498,203 | |
Class B Common Stock | |||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 | |
Common stock, shares authorized | 90,000,000 | 90,000,000 | |
Common stock, shares issued | 39,442,649 | 39,442,219 | |
Treasury stock, shares | 1,699,559 | 1,698,424 | |
Homebuilding | |||
Total assets | [1] | $ 25,519,455 | $ 24,324,093 |
Cash and cash equivalents | [1] | 800,678 | 1,337,807 |
Receivables, net | [1] | 303,595 | 236,841 |
Finished homes and construction in progress | [1] | 10,045,155 | 8,681,357 |
Land and land under development | [1] | 8,334,678 | 8,178,388 |
Consolidated inventory not owned | [1] | 394,655 | 208,959 |
Investments in unconsolidated entities | [1] | 983,683 | 870,201 |
Other assets | [1] | 1,202,965 | 1,355,782 |
Total liabilities | [2] | 12,610,168 | 11,776,898 |
Accounts payable | [2] | 1,067,984 | 1,154,782 |
Senior notes and other debts payable | [2] | 9,390,941 | 8,543,868 |
Liabilities related to consolidated inventory not owned | [2] | 346,287 | 175,590 |
Other liabilities | [2] | 1,804,956 | 1,902,658 |
Financial Services | |||
Total assets | [1] | 2,468,263 | 2,778,910 |
Cash and cash equivalents | 171,892 | 188,485 | |
Receivables, net | 230,452 | 731,169 | |
Other assets | 136,244 | 125,886 | |
Total liabilities | [2] | 1,481,006 | 1,868,202 |
Other liabilities | 266,989 | 309,500 | |
Multifamily | |||
Total assets | [1] | 1,046,196 | 874,219 |
Cash and cash equivalents | 5,203 | 7,832 | |
Receivables, net | 80,270 | 73,829 | |
Land and land under development | 347,989 | 277,894 | |
Investments in unconsolidated entities | 510,223 | 481,129 | |
Other assets | 102,511 | 33,535 | |
Total liabilities | [2] | 215,316 | 170,616 |
Lennar Other | |||
Total assets | [1] | 549,150 | 588,959 |
Cash and cash equivalents | 15,768 | 24,334 | |
Investments in unconsolidated entities | 429,943 | 424,104 | |
Other assets | 35,257 | 47,740 | |
Total liabilities | [2] | 30,039 | 67,508 |
Other liabilities | 14,861 | 53,020 | |
Variable Interest Entity, Primary Beneficiary | |||
Total assets | 1,400,000 | 666,200 | |
Total liabilities | 928,900 | 242,500 | |
Variable Interest Entity, Primary Beneficiary | Homebuilding | |||
Cash and cash equivalents | 52,900 | 57,600 | |
Receivables, net | 103,300 | 200 | |
Finished homes and construction in progress | 240,100 | 81,700 | |
Land and land under development | 301,000 | 293,100 | |
Consolidated inventory not owned | 394,700 | 209,000 | |
Investments in unconsolidated entities | 4,100 | 3,800 | |
Other assets | 10,400 | 10,500 | |
Accounts payable | 17,300 | 11,400 | |
Senior notes and other debts payable | [2] | 370,700 | 51,900 |
Liabilities related to consolidated inventory not owned | 346,300 | 175,600 | |
Other liabilities | 1,700 | 2,600 | |
Variable Interest Entity, Primary Beneficiary | Financial Services | |||
Other assets | 187,200 | ||
Total liabilities | 190,600 | ||
Variable Interest Entity, Primary Beneficiary | Multifamily | |||
Total assets | 50,800 | ||
Total liabilities | 1,000 | ||
Variable Interest Entity, Primary Beneficiary | Lennar Other | |||
Total assets | 7,200 | 10,300 | |
Total liabilities | $ 1,300 | $ 1,000 | |
[1] | Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities ("VIEs") and liabilities of consolidated VIEs as to which neither Lennar Corporation, or any of its subsidiaries, has any obligations. As of May 31, 2019 , total assets include $1.4 billion related to consolidated VIEs of which $52.9 million is included in Homebuilding cash and cash equivalents, $103.3 million in Homebuilding receivables, net, $240.1 million in Homebuilding finished homes and construction in progress, $301.0 million in Homebuilding land and land under development, $394.7 million in Homebuilding consolidated inventory not owned, $4.1 million in Homebuilding investments in unconsolidated entities, $10.4 million in Homebuilding other assets, $187.2 million in Financial Services assets, $50.8 million in Multifamily assets and $7.2 million in Lennar Other assets. As of November 30, 2018 , total assets include $666.2 million related to consolidated VIEs of which $57.6 million is included in Homebuilding cash and cash equivalents, $0.2 million in Homebuilding receivables, net, $81.7 million in Homebuilding finished homes and construction in progress, $293.1 million in Homebuilding land and land under development, $209.0 million in Homebuilding consolidated inventory not owned, $3.8 million in Homebuilding investments in unconsolidated entities, $10.5 million in Homebuilding other assets and $10.3 million in Lennar Other assets. | ||
[2] | Under certain provisions of ASC 810, the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated VIEs and liabilities of consolidated VIEs as to which neither Lennar Corporation, or any of its subsidiaries, has any obligations. As of May 31, 2019 , total liabilities include $928.9 million related to consolidated VIEs as to which there was no recourse against the Company, of which $17.3 million is included in Homebuilding accounts payable, $370.7 million in Homebuilding senior notes and other debts payable, $346.3 million in Homebuilding liabilities related to consolidated inventory not owned, $1.7 million in Homebuilding other liabilities, $190.6 million in Financial Services liabilities, $1.0 million in Multifamily liabilities and $1.3 million in Lennar Other liabilities. As of November 30, 2018 , total liabilities include $242.5 million related to consolidated VIEs as to which there was no recourse against the Company, of which $11.4 million is included in Homebuilding accounts payable, $51.9 million in Homebuilding senior notes and other debt payable, $175.6 million in Homebuilding liabilities related to consolidated inventory not owned, $2.6 million in Homebuilding other liabilities and $1.0 million in Lennar Other liabilities. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | ||
Revenues: | |||||
Revenues | $ 5,562,890 | $ 5,459,061 | $ 9,430,972 | $ 8,439,852 | |
Cost and expenses: | |||||
Acquisition and integration costs related to CalAtlantic | 0 | 23,875 | 0 | 128,070 | |
Corporate general and administrative | 76,113 | 84,915 | 155,456 | 152,725 | |
Total costs and expenses | 4,963,281 | 5,077,732 | 8,508,598 | 7,947,801 | |
Equity in earnings (loss) from unconsolidated entities | (5,908) | (3,740) | |||
Earnings before income taxes | 559,399 | 390,810 | 878,523 | 660,238 | |
Provision for income taxes | [1] | (140,530) | (75,961) | (220,230) | (208,572) |
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | 418,869 | 314,849 | 658,293 | 451,666 | |
Less: Net earnings (loss) attributable to noncontrolling interests | (2,603) | 4,592 | (3,089) | 5,194 | |
Net earnings attributable to Lennar | 421,472 | 310,257 | 661,382 | 446,472 | |
Other comprehensive income (loss), net of tax: | |||||
Net unrealized gain (loss) on securities available-for-sale | 561 | (589) | 769 | (1,247) | |
Reclassification adjustments for gains included in earnings, net of tax | (176) | (126) | (176) | (126) | |
Total other comprehensive income (loss), net of tax | 385 | (715) | 593 | (1,373) | |
Total comprehensive income attributable to Lennar | 421,857 | 309,542 | 661,975 | 445,099 | |
Total comprehensive income (loss) attributable to noncontrolling interests | $ (2,603) | $ 4,592 | $ (3,089) | $ 5,194 | |
Basic earnings per share (in dollars per share) | $ 1.31 | $ 0.95 | $ 2.05 | $ 1.53 | |
Diluted earnings per share (in dollars per share) | $ 1.30 | $ 0.94 | $ 2.03 | $ 1.52 | |
Loss on consolidation of previously unconsolidated entity | $ 48,874 | $ 0 | |||
Write down of deferred tax asset resulting from Tax Cuts and Jobs Act | 68,600 | ||||
Homebuilding | |||||
Revenues: | |||||
Revenues | $ 5,195,599 | $ 5,063,997 | 8,819,320 | 7,726,090 | |
Cost and expenses: | |||||
Cost and expenses | 4,587,259 | 4,636,063 | 7,826,094 | 7,040,096 | |
Equity in earnings (loss) from unconsolidated entities | 19,614 | (12,670) | 5,858 | (26,798) | |
Other income (expense), net | (46,165) | 9,879 | (47,700) | 179,874 | |
Financial Services | |||||
Revenues: | |||||
Revenues | 204,216 | 249,710 | 347,527 | 445,797 | |
Cost and expenses: | |||||
Cost and expenses | 147,999 | 193,935 | 272,338 | 364,159 | |
Multifamily | |||||
Revenues: | |||||
Revenues | 147,412 | 117,693 | 244,806 | 210,949 | |
Cost and expenses: | |||||
Cost and expenses | 148,716 | 117,186 | 249,894 | 214,385 | |
Equity in earnings (loss) from unconsolidated entities | (3,018) | 14,281 | 7,563 | 17,023 | |
Lennar Other | |||||
Revenues: | |||||
Revenues | 15,663 | 27,661 | 19,319 | 57,016 | |
Cost and expenses: | |||||
Cost and expenses | 3,194 | 21,758 | 4,816 | 48,366 | |
Equity in earnings (loss) from unconsolidated entities | (4,978) | 4,560 | 3,352 | 13,515 | |
Other income (expense), net | (5,663) | (6,569) | (12,924) | (15,427) | |
Earnings before income taxes | 660,238 | ||||
Operating Segments | Homebuilding | |||||
Revenues: | |||||
Revenues | 5,195,599 | 5,063,997 | 8,819,320 | 7,726,090 | |
Cost and expenses: | |||||
Cost and expenses | 4,587,259 | 4,636,063 | 7,826,094 | 7,040,096 | |
Equity in earnings (loss) from unconsolidated entities | 19,614 | (12,670) | 5,858 | (26,798) | |
Other income (expense), net | [2] | (46,165) | 9,879 | (47,700) | 179,874 |
Other comprehensive income (loss), net of tax: | |||||
Loss on consolidation of previously unconsolidated entity | 48,900 | ||||
Operating Segments | Financial Services | |||||
Revenues: | |||||
Revenues | 204,216 | 249,709 | 347,527 | 445,796 | |
Cost and expenses: | |||||
Cost and expenses | 147,999 | 193,935 | 272,338 | 364,160 | |
Operating Segments | Multifamily | |||||
Revenues: | |||||
Revenues | 147,412 | 117,693 | 244,806 | 210,949 | |
Cost and expenses: | |||||
Cost and expenses | 148,716 | 117,186 | 249,894 | 214,385 | |
Income (Loss) from Equity Method Investments and other gain | (3,018) | 14,281 | 7,563 | 17,023 | |
Operating Segments | Lennar Other | |||||
Revenues: | |||||
Revenues | 15,663 | 27,662 | 19,319 | 57,017 | |
Cost and expenses: | |||||
Cost and expenses | 3,194 | 21,758 | 4,816 | 48,365 | |
Equity in earnings (loss) from unconsolidated entities | (4,978) | 4,560 | 3,352 | 13,515 | |
Other income (expense), net | (5,663) | (6,569) | (12,924) | (15,427) | |
Operating Segments | Homebuilding Other | |||||
Revenues: | |||||
Revenues | 8,237 | $ 15,351 | 10,664 | $ 25,858 | |
Other comprehensive income (loss), net of tax: | |||||
Loss on consolidation of previously unconsolidated entity | $ 48,900 | $ 48,900 | |||
[1] | Provision for income taxes for the six months ended May 31, 2018 includes a non-cash one-time write down of deferred tax assets of $68.6 million resulting from the Tax Cuts and Jobs Act enacted in December 2017. | ||||
[2] | Homebuilding other expense, net for the three and six months ended May 31, 2019 includes a one-time loss of $48.9 million relating to the consolidation of a previously unconsolidated entity. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Cash flows from operating activities: | ||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | $ 658,293 | $ 451,666 |
Adjustments to reconcile net earnings to net cash used in operating activities: | ||
Depreciation and amortization | 40,986 | 41,430 |
Amortization of discount/premium and accretion on debt, net | (13,335) | (11,984) |
Equity in loss from unconsolidated entities | 5,908 | 3,740 |
Distributions of earnings from unconsolidated entities | 4,037 | 18,685 |
Share-based compensation expense | 31,390 | 33,720 |
Deferred income tax expense | 101,477 | 46,895 |
Gain on sale of operating properties and equipment | 0 | (5,107) |
Gain on sale of other assets | (218) | 0 |
Loss on consolidation of previously unconsolidated entity | 48,874 | 0 |
Gain on sale of interest in unconsolidated entities and other Multifamily gain | (10,865) | (164,880) |
Gain on sale of Financial Services' businesses | (2,168) | 0 |
Unrealized and realized gains on real estate owned | (1,253) | (1,770) |
Impairments of loans receivable, loans held-for-sale and real estate owned | 0 | 6,009 |
Valuation adjustments and write-offs of option deposits and pre-acquisition costs | 10,602 | 25,807 |
Changes in assets and liabilities: | ||
Decrease in receivables | 542,054 | 44,248 |
Increase in inventories, excluding valuation adjustments and write-offs of option deposits and pre-acquisition costs | (1,501,423) | (408,913) |
Decrease (increase) in other assets | 66,464 | (119,698) |
Increase in loans held-for-sale | (206,349) | (43,903) |
Increase (decrease) in accounts payable and other liabilities | (192,548) | 111,049 |
Net cash (used in) provided by operating activities | (429,890) | 19,514 |
Cash flows from investing activities: | ||
Net additions of operating properties and equipment | (47,766) | (58,935) |
Proceeds from the sale of operating properties and equipment | 0 | 22,820 |
Proceeds from sale of investment in unconsolidated entity | 17,790 | 175,179 |
Proceeds from sale of Financial Services' businesses | 24,446 | 0 |
Investments in and contributions to unconsolidated entities | (230,744) | (186,103) |
Distributions of capital from unconsolidated entities | 140,888 | 196,073 |
Proceeds from sales of real estate owned | 4,210 | 21,658 |
Receipts of principal payments on loans receivable and other | 1,811 | 2,147 |
Purchases of commercial mortgage-backed securities bonds | 0 | (31,068) |
Acquisitions, net of cash and restricted cash acquired | 0 | (1,077,964) |
Increase in Financial Services loans held-for-investment, net | (5,975) | (3,012) |
Purchases of investment securities | (31,462) | (32,369) |
Proceeds from maturities/sales of investments securities | 35,416 | 20,578 |
Other payments, net | (200) | (318) |
Net cash used in investing activities | (91,586) | (951,314) |
Cash flows from financing activities: | ||
Proceeds from other borrowings | 28,620 | 64,072 |
Principal payments on other borrowings | (123,681) | (410,549) |
Payments related to other liabilities | (1,046) | (1,568) |
Receipts related to noncontrolling interests | 8,937 | 3,882 |
Debt issuance costs | 0 | (12,101) |
Redemption of senior notes | 0 | (575,000) |
Conversions and exchanges on convertible senior notes | (1,288) | (59,145) |
Payments related to noncontrolling interests | (23,317) | (30,412) |
Common stock: | ||
Issuances | 634 | 3,184 |
Repurchases | (101,229) | (28,526) |
Dividends | (25,877) | (22,780) |
Net cash used in financing activities | (53,431) | (565,933) |
Net decrease in cash and cash equivalents and restricted cash | (574,907) | (1,497,733) |
Cash and cash equivalents and restricted cash at beginning of period | 1,595,978 | 2,694,084 |
Cash and cash equivalents and restricted cash at end of period | 1,021,071 | 1,196,351 |
Consolidation/deconsolidation of unconsolidated/consolidated entities, net: | ||
Inventories | 187,506 | 35,430 |
Receivables | 102,959 | 7,198 |
Operating properties and equipment and other assets | 53,412 | 0 |
Investments in unconsolidated entities | 67,925 | (25,614) |
Notes payable | (383,212) | 0 |
Other liabilities | (19,696) | (17,014) |
Noncontrolling interests | (8,894) | 0 |
Homebuilding | ||
Adjustments to reconcile net earnings to net cash used in operating activities: | ||
Equity in loss from unconsolidated entities | (5,858) | 26,798 |
Lennar Other | ||
Adjustments to reconcile net earnings to net cash used in operating activities: | ||
Equity in loss from unconsolidated entities | (3,352) | (13,515) |
Multifamily | ||
Adjustments to reconcile net earnings to net cash used in operating activities: | ||
Equity in loss from unconsolidated entities | (7,563) | (17,023) |
Lennar Homebuilding and Lennar Multifamily | ||
Homebuilding and Multifamily: | ||
Purchases of inventories and other assets financed by sellers | 46,631 | 45,078 |
Non-cash contributions to unconsolidated entities | 0 | 87,269 |
Conversions and exchanges on convertible senior notes | 0 | 217,154 |
Equity component of acquisition consideration | 0 | 5,070,006 |
Consolidating Adjustments | ||
Cash flows from operating activities: | ||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | (809,248) | (582,840) |
Changes in assets and liabilities: | ||
Net cash (used in) provided by operating activities | (809,248) | (582,840) |
Cash flows from investing activities: | ||
Proceeds from sale of investment in unconsolidated entity | 0 | |
Proceeds from sale of Financial Services' businesses | 0 | |
Proceeds from sales of real estate owned | 0 | 0 |
Purchases of commercial mortgage-backed securities bonds | 0 | |
Acquisitions, net of cash and restricted cash acquired | 0 | |
Net cash used in investing activities | 1,263,527 | 949,631 |
Cash flows from financing activities: | ||
Redemption of senior notes | 0 | |
Conversions and exchanges on convertible senior notes | 0 | |
Common stock: | ||
Issuances | 0 | 0 |
Repurchases | 0 | 0 |
Dividends | 809,248 | 667,840 |
Net cash used in financing activities | (454,279) | (366,791) |
Net decrease in cash and cash equivalents and restricted cash | 0 | 0 |
Cash and cash equivalents and restricted cash at beginning of period | 0 | 0 |
Cash and cash equivalents and restricted cash at end of period | 0 | 0 |
Consolidating Adjustments | Homebuilding | ||
Adjustments to reconcile net earnings to net cash used in operating activities: | ||
Equity in loss from unconsolidated entities | 0 | 0 |
Consolidating Adjustments | Lennar Other | ||
Adjustments to reconcile net earnings to net cash used in operating activities: | ||
Equity in loss from unconsolidated entities | 0 | 0 |
Consolidating Adjustments | Multifamily | ||
Adjustments to reconcile net earnings to net cash used in operating activities: | ||
Equity in loss from unconsolidated entities | 0 | 0 |
Operating Segments | ||
Common stock: | ||
Cash and cash equivalents and restricted cash at end of period | 1,021,071 | 1,196,351 |
Operating Segments | Homebuilding | ||
Adjustments to reconcile net earnings to net cash used in operating activities: | ||
Equity in loss from unconsolidated entities | (5,858) | 26,798 |
Loss on consolidation of previously unconsolidated entity | 48,900 | |
Common stock: | ||
Cash and cash equivalents and restricted cash at end of period | 812,365 | 949,262 |
Operating Segments | Financial Services | ||
Common stock: | ||
Cash and cash equivalents and restricted cash at end of period | 186,760 | 175,884 |
Operating Segments | Lennar Other | ||
Adjustments to reconcile net earnings to net cash used in operating activities: | ||
Equity in loss from unconsolidated entities | (3,352) | (13,515) |
Common stock: | ||
Cash and cash equivalents and restricted cash at end of period | 16,743 | 55,825 |
Operating Segments | Multifamily | ||
Common stock: | ||
Cash and cash equivalents and restricted cash at end of period | 5,203 | 15,380 |
Unsecured Revolving Credit Facility | ||
Cash flows from financing activities: | ||
Net borrowings under credit facilities | 550,000 | 495,300 |
Unsecured Revolving Credit Facility | Consolidating Adjustments | ||
Cash flows from financing activities: | ||
Net borrowings under credit facilities | 0 | 0 |
Warehouse Repurchase Facility | ||
Cash flows from financing activities: | ||
Net borrowings under credit facilities | (365,184) | 7,710 |
Warehouse Repurchase Facility | Consolidating Adjustments | ||
Cash flows from financing activities: | ||
Net borrowings under credit facilities | 0 | 0 |
Lennar Corporation | Reportable Legal Entities | ||
Cash flows from operating activities: | ||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | 661,382 | 446,472 |
Changes in assets and liabilities: | ||
Net cash (used in) provided by operating activities | 617,285 | 277,845 |
Cash flows from investing activities: | ||
Proceeds from sale of investment in unconsolidated entity | 0 | |
Proceeds from sale of Financial Services' businesses | 0 | |
Proceeds from sales of real estate owned | 0 | 0 |
Purchases of commercial mortgage-backed securities bonds | 0 | |
Acquisitions, net of cash and restricted cash acquired | (1,140,367) | |
Net cash used in investing activities | (1,263,697) | (2,131,566) |
Cash flows from financing activities: | ||
Redemption of senior notes | (484,332) | |
Conversions and exchanges on convertible senior notes | 0 | |
Common stock: | ||
Issuances | 634 | 3,184 |
Repurchases | (101,229) | (28,526) |
Dividends | (25,877) | (22,780) |
Net cash used in financing activities | 423,528 | 408,437 |
Net decrease in cash and cash equivalents and restricted cash | (222,884) | (1,445,284) |
Cash and cash equivalents and restricted cash at beginning of period | 624,694 | 1,938,555 |
Cash and cash equivalents and restricted cash at end of period | 401,810 | 493,271 |
Lennar Corporation | Reportable Legal Entities | Homebuilding | ||
Adjustments to reconcile net earnings to net cash used in operating activities: | ||
Equity in loss from unconsolidated entities | 0 | 0 |
Lennar Corporation | Reportable Legal Entities | Lennar Other | ||
Adjustments to reconcile net earnings to net cash used in operating activities: | ||
Equity in loss from unconsolidated entities | 0 | 0 |
Lennar Corporation | Reportable Legal Entities | Multifamily | ||
Adjustments to reconcile net earnings to net cash used in operating activities: | ||
Equity in loss from unconsolidated entities | 0 | 0 |
Lennar Corporation | Unsecured Revolving Credit Facility | Reportable Legal Entities | ||
Cash flows from financing activities: | ||
Net borrowings under credit facilities | 550,000 | 950,000 |
Lennar Corporation | Warehouse Repurchase Facility | Reportable Legal Entities | ||
Cash flows from financing activities: | ||
Net borrowings under credit facilities | 0 | 0 |
Guarantor Subsidiaries | Reportable Legal Entities | ||
Cash flows from operating activities: | ||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | 765,109 | 526,835 |
Changes in assets and liabilities: | ||
Net cash (used in) provided by operating activities | (424,128) | 458,242 |
Cash flows from investing activities: | ||
Proceeds from sale of investment in unconsolidated entity | 175,179 | |
Proceeds from sale of Financial Services' businesses | 21,317 | |
Proceeds from sales of real estate owned | 0 | 0 |
Purchases of commercial mortgage-backed securities bonds | 0 | |
Acquisitions, net of cash and restricted cash acquired | 23,035 | |
Net cash used in investing activities | (107,920) | 236,294 |
Cash flows from financing activities: | ||
Redemption of senior notes | (90,668) | |
Conversions and exchanges on convertible senior notes | (59,145) | |
Common stock: | ||
Issuances | 0 | 0 |
Repurchases | 0 | 0 |
Dividends | (765,109) | (591,835) |
Net cash used in financing activities | 191,144 | (625,331) |
Net decrease in cash and cash equivalents and restricted cash | (340,904) | 69,205 |
Cash and cash equivalents and restricted cash at beginning of period | 721,603 | 366,946 |
Cash and cash equivalents and restricted cash at end of period | 380,699 | 436,151 |
Guarantor Subsidiaries | Reportable Legal Entities | Homebuilding | ||
Adjustments to reconcile net earnings to net cash used in operating activities: | ||
Equity in loss from unconsolidated entities | (5,586) | 26,761 |
Guarantor Subsidiaries | Reportable Legal Entities | Lennar Other | ||
Adjustments to reconcile net earnings to net cash used in operating activities: | ||
Equity in loss from unconsolidated entities | 7,585 | (285) |
Guarantor Subsidiaries | Reportable Legal Entities | Multifamily | ||
Adjustments to reconcile net earnings to net cash used in operating activities: | ||
Equity in loss from unconsolidated entities | 0 | 0 |
Guarantor Subsidiaries | Unsecured Revolving Credit Facility | Reportable Legal Entities | ||
Cash flows from financing activities: | ||
Net borrowings under credit facilities | 0 | (454,700) |
Guarantor Subsidiaries | Warehouse Repurchase Facility | Reportable Legal Entities | ||
Cash flows from financing activities: | ||
Net borrowings under credit facilities | 170 | (54) |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||
Cash flows from operating activities: | ||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | 41,050 | 61,199 |
Changes in assets and liabilities: | ||
Net cash (used in) provided by operating activities | 186,201 | (133,733) |
Cash flows from investing activities: | ||
Proceeds from sale of investment in unconsolidated entity | 0 | |
Proceeds from sale of Financial Services' businesses | 3,129 | |
Proceeds from sales of real estate owned | 4,210 | 21,658 |
Purchases of commercial mortgage-backed securities bonds | (31,068) | |
Acquisitions, net of cash and restricted cash acquired | 39,368 | |
Net cash used in investing activities | 16,504 | (5,673) |
Cash flows from financing activities: | ||
Redemption of senior notes | 0 | |
Conversions and exchanges on convertible senior notes | 0 | |
Common stock: | ||
Issuances | 0 | 0 |
Repurchases | 0 | 0 |
Dividends | (44,139) | (76,005) |
Net cash used in financing activities | (213,824) | 17,752 |
Net decrease in cash and cash equivalents and restricted cash | (11,119) | (121,654) |
Cash and cash equivalents and restricted cash at beginning of period | 249,681 | 388,583 |
Cash and cash equivalents and restricted cash at end of period | 238,562 | 266,929 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | Homebuilding | ||
Adjustments to reconcile net earnings to net cash used in operating activities: | ||
Equity in loss from unconsolidated entities | (272) | 37 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | Lennar Other | ||
Adjustments to reconcile net earnings to net cash used in operating activities: | ||
Equity in loss from unconsolidated entities | (10,937) | (13,230) |
Non-Guarantor Subsidiaries | Reportable Legal Entities | Multifamily | ||
Adjustments to reconcile net earnings to net cash used in operating activities: | ||
Equity in loss from unconsolidated entities | (7,563) | (17,023) |
Non-Guarantor Subsidiaries | Unsecured Revolving Credit Facility | Reportable Legal Entities | ||
Cash flows from financing activities: | ||
Net borrowings under credit facilities | 0 | 0 |
Non-Guarantor Subsidiaries | Warehouse Repurchase Facility | Reportable Legal Entities | ||
Cash flows from financing activities: | ||
Net borrowings under credit facilities | $ (365,354) | 7,764 |
Senior Notes | ||
Cash flows from financing activities: | ||
Debt issuance costs | (12,101) | |
Senior Notes | Consolidating Adjustments | ||
Cash flows from financing activities: | ||
Debt issuance costs | 0 | |
Senior Notes | Lennar Corporation | Reportable Legal Entities | ||
Cash flows from financing activities: | ||
Debt issuance costs | (9,109) | |
Senior Notes | Guarantor Subsidiaries | Reportable Legal Entities | ||
Cash flows from financing activities: | ||
Debt issuance costs | 0 | |
Senior Notes | Non-Guarantor Subsidiaries | Reportable Legal Entities | ||
Cash flows from financing activities: | ||
Debt issuance costs | $ (2,992) |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
May 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Basis of Consolidation The accompanying condensed consolidated financial statements include the accounts of Lennar Corporation and all subsidiaries, partnerships and other entities in which Lennar Corporation has a controlling interest and variable interest entities ("VIEs") (see Note 16 of the Notes to the Condensed Consolidated Financial Statements) in which Lennar Corporation is deemed to be the primary beneficiary (the "Company"). The Company’s investments in both unconsolidated entities in which a significant, but less than controlling, interest is held and in VIEs in which the Company is not deemed to be the primary beneficiary, are accounted for by the equity method. All intercompany transactions and balances have been eliminated in consolidation. The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended November 30, 2018 . In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for the fair presentation of the accompanying condensed consolidated financial statements have been made. The Company has historically experienced, and expects to continue to experience, variability in quarterly results. The condensed consolidated statements of operations for the three and six months ended May 31, 2019 are not necessarily indicative of the results to be expected for the full year. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, Revenue from Contracts with Customers , ("ASU 2014-09"). ASU 2014-09 provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update creates a five-step model that requires entities to exercise judgment when considering the terms of the contract(s) which include (i) identifying the contract(s) with the customer, (ii) identifying the separate performance obligations in the contract, (iii) determining the transaction price, (iv) allocating the transaction price to the separate performance obligations, and (v) recognizing revenue when each performance obligation is satisfied. ASU 2014-09 became effective for the Company’s fiscal year beginning December 1, 2018 and subsequent interim periods. Subsequent to the issuance of ASU 2014-09, the FASB has issued several ASUs such as ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients , and ASU 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets , among others. These ASUs do not change the core principle of the guidance stated in ASU 2014-09, instead these amendments are intended to clarify and improve operability of certain topics included within the revenue standard. These ASUs had the same effective date and transition requirements as ASU 2014-09. The Company has adopted the modified retrospective method. The Company recorded an immaterial net increase to retained earnings as of December 1, 2018, due to the cumulative impact of adopting ASU 2014-09, with the impact primarily related to the recognition of deferral of net margin from home deliveries. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"). ASU 2016-15 reduces the existing diversity in practice in financial reporting across all industries by clarifying certain existing principles in ASC 230, Statement of Cash Flows , including providing additional guidance on how and what an entity should consider in determining the classification of certain cash flows. ASU 2016-15 was effective for the Company’s fiscal year beginning December 1, 2018 and subsequent interim periods. The adoption of ASU 2016-15 did not have a material effect on the Company’s consolidated financial statements. The Company adopted ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash , effective December 1, 2018. The amendments in the standard require that the statement of cash flows explain the change during the period in the total of cash and cash equivalents and restricted cash. As a result, the Company's beginning-of-period and end-of-period cash balances presented in the condensed consolidated statements of cash flows were retrospectively adjusted to include restricted cash with cash and cash equivalents. In accordance with Securities and Exchange Commission ("SEC") Final Rule Release No. 33-10532, Disclosure Update and Simplification, the Company removed the presentation of cash dividends per each Class A and Class B common share from the accompanying condensed consolidated statements of operations and comprehensive income (loss). This is now disclosed with the analysis of changes in stockholders' equity within Note 5 of the Notes to the Condensed Consolidated Financial Statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"). ASU 2016-01 modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Under the new guidance, entities have to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicality exception. A practicality exception will apply to those equity investments that do not have a readily determinable fair value and do not qualify for the practical expedient to estimate fair value under ASC 820, Fair Value Measurements, and as such, these investments may be measured at cost. ASU 2016-01 was effective for the Company’s fiscal year beginning December 1, 2018 and subsequent interim periods. The adoption of ASU 2016-01 did not have a material impact on the Company’s condensed consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business ("ASU 2017-01"). ASU 2017- 01 clarifies the definition of a business with the objective of addressing whether transactions involving in-substance nonfinancial assets, held directly or in a subsidiary, should be accounted for as acquisitions or disposals of nonfinancial assets or of businesses. ASU 2017-01 was effective for the Company’s fiscal year beginning December 1, 2018 and subsequent interim periods. The adoption of ASU 2017-01 did not have a material impact on the Company’s condensed consolidated financial statements. Revenue Recognition Homebuilding revenues and related profits from sales of homes are recognized at the time of the closing of a sale, when title to and possession of the property are transferred to the homebuyer. The Company’s performance obligation, to deliver the agreed-upon home, is generally satisfied in less than one year from the original contract date. Cash proceeds from home closings held in escrow for the Company’s benefit, typically for approximately three days, are included in Homebuilding cash and cash equivalents in the Condensed Consolidated Balance Sheets and disclosed in Note 11 of the Notes to the Condensed Consolidated Financial Statements. Contract liabilities include customer deposits liabilities related to sold but undelivered homes that are included in other liabilities in the Condensed Consolidated Balance Sheets. The Company periodically elects to sell parcels of land to third parties. Cash consideration from land sales is typically due on the closing date, which is generally when performance obligations are satisfied and revenue is recognized as title to and possession of the property are transferred to the buyer. The Company’s financial services’ operations recognize revenues as follows: Title premiums on policies issued directly by the Company are recognized as revenue on the effective date of the title policies. Escrow fees and loan origination revenues are recognized at the time the related real estate transactions are completed, usually upon the close of escrow. Revenues from title policies issued by independent agents are recognized as revenue when notice of issuance is received from the agent, which is generally when cash payment is received by the Company. The Company’s Multifamily segment provides management services with respect to the development, construction and property management of rental projects in joint ventures in which the Company has investments. As a result, the Multifamily segment earns and receives fees, which are generally based upon a stated percentage of development and construction costs and a percentage of gross rental collections. These fees are recorded over the period in which the services are performed using an input method, which properly depicts the level of effort required to complete the management services. In addition, the Multifamily segment provides general contractor services for the construction of some of its rental projects and recognizes the revenue over the period in which the services are performed using an input method, which properly depicts the level of effort required to complete the construction services. These customer contracts require the Company to provide management and general contractor services which represents a performance obligation that the Company satisfies over time. Management fees and general contractor services in the Multifamily segment are included in Multifamily revenue. Reclassifications Certain prior year amounts in the condensed consolidated financial statements have been reclassified to conform with the 2019 presentation. The Company's segments were adjusted to reflect Rialto Mortgage Finance ("RMF") and certain other Rialto assets within the Financial Services segment effective December 1, 2018. The remaining assets retained related to the Company's former Rialto segment were included in the Lennar Other segment. In addition, the Company's strategic technology investments, which were part of Homebuilding, were reclassified to be included in the Lennar Other segment. These reclassifications were between segments and had no impact on the Company's total assets, total equity, revenue or net income in the condensed consolidated financial statements. |
Business Acquisition
Business Acquisition | 6 Months Ended |
May 31, 2019 | |
Business Combinations [Abstract] | |
Business Acquisition | Business Acquisitions Acquisition of CalAtlantic Group, Inc. On February 12, 2018, the Company completed the acquisition of CalAtlantic Group, Inc. (“CalAtlantic”) through a transaction in which CalAtlantic was merged with and into a wholly-owned subsidiary of the Company (“Merger Sub”), with Merger Sub continuing as the surviving corporation and a wholly-owned subsidiary of the Company (the “Merger”). CalAtlantic was a homebuilder which built homes across the homebuilding spectrum, from entry level to luxury, in 43 metropolitan statistical areas spanning 19 states. CalAtlantic also provided mortgage, title and escrow services. A primary reason for the acquisition was to increase local market concentration in order to generate synergies and efficiencies. Based on an evaluation of the provisions of ASC Topic 805, Business Combinations , ("ASC 805"), Lennar Corporation was determined to be the acquirer for accounting purposes. The $3.3 billion allocated to Homebuilding goodwill and the $175 million allocated to Financial Services goodwill is final and represents the excess of the purchase price over the estimated fair value of assets acquired and liabilities assumed. The following table summarizes the purchase price allocation based on the estimated fair value of net assets acquired and liabilities assumed at the date of acquisition: (Dollars in thousands) CalAtlantic shares of common stock outstanding 118,025,879 CalAtlantic shares electing cash conversion 24,083,091 CalAtlantic shares exchanged 93,942,788 Exchange ratio for Class A common stock 0.885 Exchange ratio for Class B common stock 0.0177 Number of shares of Lennar Class A common stock issued in exchange 83,138,277 Number of shares of Lennar Class B common stock issued in exchange (due to Class B common stock dividend) 1,662,172 Consideration attributable to Class A common stock $ 4,933,425 Consideration attributable to Class B common stock 77,823 Consideration attributable to equity awards that convert upon change of control 58,758 Consideration attributable to cash including fractional shares 1,162,341 Total purchase price $ 6,232,347 (In thousands) ASSETS Homebuilding: Cash and cash equivalents, restricted cash and receivables, net $ 55,191 Inventories 6,239,147 Intangible asset (1) 8,000 Investments in unconsolidated entities 151,900 Goodwill (2) 3,305,792 Other assets 561,151 Total Homebuilding assets 10,321,181 Financial Services (2) 355,128 Total assets 10,676,309 LIABILITIES Homebuilding: Accounts payable 306 Senior notes payable and other debts 3,926,152 Other liabilities (3) 374,656 Total Homebuilding liabilities 4,301,114 Financial Services 124,418 Total liabilities 4,425,532 Noncontrolling interests (4) 18,430 Total purchase price $ 6,232,347 (1) Intangible asset includes trade name. The amortization period for the trade name was six months . (2) Goodwill represents the excess of the purchase price over the fair value of assets acquired and liabilities assumed, and it is generally not deductible for income tax purposes. As of the Merger date, goodwill consisted primarily of expected greater efficiencies and opportunities due to increased concentration of local market share, reduced general and administrative costs and reduced homebuilding costs resulting from the merger and cost savings as a result of additional homebuilding and non-homebuilding synergies. The allocation of goodwill among the Company's reporting segments included $1.1 billion to Homebuilding East, $495.0 million to Homebuilding Central, $342.2 million to Homebuilding Texas, $1.4 billion to Homebuilding West, and $175.4 million to Financial Services. (3) Other liabilities includes contingencies assumed at the Merger date, which includes warranty and legal reserves. Warranty reserves for homes are established at an amount estimated to be adequate to cover potential costs for materials and labor with regard to warranty-type claims expected to be incurred subsequent to the delivery of a home. Warranty reserves are determined based on historical data and trends with respect to similar product types and geographical areas. Consistent with ASC 450, Contingencies, legal reserves are established when a loss is considered probable and the amount of loss can be reasonably estimated. (4) Fair value of noncontrolling interests was measured using discounted cash flows of expected future contributions and distributions. Homebuilding revenue and net earnings attributable to Lennar for the three and six months ended May 31, 2018 included $2.1 billion and $2.5 billion , respectively, of home sales revenues, and earnings (loss) before income taxes included $56.5 million and ($52.0) million , respectively, of a pre-tax earnings (loss) from CalAtlantic since the date of acquisition, which included acquisition and integration costs of $23.9 million and $128.1 million , respectively. These transaction expenses were included within acquisition and integration costs related to CalAtlantic in the accompanying condensed consolidated statement of operations for the three and six months ended May 31, 2018 . |
Operating and Reporting Segment
Operating and Reporting Segments | 6 Months Ended |
May 31, 2019 | |
Segment Reporting [Abstract] | |
Operating and Reporting Segments | Operating and Reporting Segments 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: (1) Homebuilding East (2) Homebuilding Central (3) Homebuilding Texas (4) Homebuilding West (5) Financial Services (6) Multifamily (7) Lennar Other Information about homebuilding activities in states which are not economically similar to other states in the same geographic area is grouped under "Homebuilding Other," which is not considered a reportable segment. 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. The Company’s reportable Homebuilding segments and all other homebuilding operations not required to be reported separately have homebuilding divisions located in: East: Florida, New Jersey, North Carolina and South Carolina Central: Georgia, Illinois, Indiana, Maryland, Minnesota and Virginia Texas: Texas West: Arizona, California, Colorado, Nevada, Oregon, Utah and Washington Other: Urban divisions and other homebuilding related investments primarily in California, including FivePoint Holdings, LLC ("FivePoint") 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. Financial information relating to the Company’s operations was as follows: (In thousands) May 31, November 30, 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. Financial Services Segment The assets and liabilities related to the Financial Services segment were as follows: (In thousands) May 31, November 30, 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. 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 (1) Subsequent to May 31, 2019, the warehouse repurchase facility maturity was extended to June 2020 and the maximum aggregate commitment amount decreased to $500 million . (2) Maximum aggregate commitment includes an uncommitted amount of $300 million . (3) Maximum aggregate commitment includes an uncommitted amount of $400 million . (4) Maximum aggregate commitment includes an uncommitted amount of $300 million . 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 by collecting receivables on loans sold but not yet paid for. Without the facilities, the Financial Services segment would have to use cash from operations and other funding sources to finance its lending activities. 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. The activity in the Company’s loan origination liabilities was as follows: 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 Rialto Mortgage Finance - loans held-for-sale 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. During the six months ended May 31, 2018 , RMF originated commercial loans with a total principal balance of $663.8 million , all of which were recorded as loans held-for-sale, and sold $556.3 million of commercial loans into six separate securitizations. 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 (1) RMF uses this warehouse repurchase facility to finance the origination of floating rate accrual loans, which are reported as accrual loans within loans held-for-investment, net. There were no borrowings under this facility as of both May 31, 2019 and November 30, 2018 . Borrowings under the facilities that finance RMF's commercial loan originations and securitization activities were $155.9 million and $178.8 million as of May 31, 2019 and November 30, 2018 , respectively, and were secured by a 75% interest in the originated commercial loans financed. The facilities require immediate repayment of the 75% interest in the 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. Investments held-to-maturity 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% . Multifamily Segment The Company is actively involved, primarily through unconsolidated entities, in the development, construction and property management of multifamily rental properties. The Multifamily segment focuses on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S. markets. The assets and liabilities related to the Multifamily segment were as follows: (In thousands) May 31, November 30, 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. 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. Summarized condensed financial information on a combined 100% basis related to Multifamily's investments in unconsolidated entities that are accounted for by the equity method was as follows: Balance Sheets (Dollars in thousands) May 31, November 30, 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 (1) Notes payable are net of debt issuance costs of $21.0 million and $15.7 million , as of May 31, 2019 and November 30, 2018 , respectively. Statements of Operations 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 (1) 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. Lennar Other primarily includes fund investments the Company retained when it sold the Rialto asset and investment management platform, as well as strategic investments in technology companies. The assets and liabilities related to Lennar Other were as follows: (In thousands) May 31, November 30, 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 Investments held-to-maturity 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% . |
Homebuilding Investments In Unc
Homebuilding Investments In Unconsolidated Entities | 6 Months Ended |
May 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Homebuilding Investments in Unconsolidated Entities | Homebuilding Investments in Unconsolidated Entities Summarized condensed financial information on a combined 100% basis related to Homebuilding’s unconsolidated entities that are accounted for by the equity method was as follows: Statements of Operations Three Months Ended Six Months Ended May 31, May 31, (In thousands) 2019 2018 2019 2018 Revenues $ 65,686 100,952 156,330 169,141 Costs and expenses 90,363 148,678 214,114 256,102 Other income (1) 75,868 105,192 76,065 105,192 Net earnings of unconsolidated entities $ 51,191 57,466 18,281 18,231 Homebuilding equity in earnings (loss) from unconsolidated entities $ 19,614 (12,670 ) 5,858 (26,798 ) (1) During the three and six months ended May 31, 2019 , other income was primarily attributable to a $64.9 million gain on the settlement of contingent consideration recorded by one Homebuilding unconsolidated entity, of which the Company's pro-rata share was $25.9 million . During the three and six months ended May 31, 2018 , other income was primarily due to FivePoint recording income resulting from the Tax Cuts and Jobs Act of 2017’s reduction in its corporate tax rate to reduce its liability pursuant to its tax receivable agreement (“TRA Liability”) with its non-controlling interests. However, the Company has a 70% interest in the FivePoint TRA Liability. Therefore, the Company did not include in Homebuilding’s equity in earnings (loss) from unconsolidated entities its pro-rata share of earnings related to the Company’s portion of the TRA Liability. As a result, the Company’s unconsolidated entities have net earnings, but the Company has an equity in loss from unconsolidated entities. For the three and six months ended May 31, 2019 , Homebuilding equity in earnings from unconsolidated entities was primarily attributable to the Company's share of net operating income from one of Homebuilding's unconsolidated entities which was primarily attributable to a gain on settlement of contingent consideration. For the three and six months ended May 31, 2018 , Homebuilding equity in loss from unconsolidated entities was primarily attributable to the Company's share of valuation adjustments related to assets of Homebuilding's unconsolidated entities and the Company's share of net operating losses from its unconsolidated entities excluding other income. Balance Sheets (In thousands) May 31, November 30, Assets: Cash and cash equivalents $ 651,681 781,833 Inventories 4,177,728 4,291,470 Other assets 988,714 1,045,274 $ 5,818,123 6,118,577 Liabilities and equity: Accounts payable and other liabilities $ 757,410 874,355 Debt (1) 825,275 1,202,556 Equity 4,235,438 4,041,666 $ 5,818,123 6,118,577 Homebuilding investments in unconsolidated entities (2) $ 983,683 870,201 (1) Debt presented above is net of debt issuance costs of $9.9 million and $12.4 million , as of May 31, 2019 and November 30, 2018 , respectively. The decrease in debt was primarily related to the Company's consolidation of a previously unconsolidated entity as of May 31, 2019 . (2) Homebuilding investments in unconsolidated entities as of November 30, 2018 , does not include $62.0 million of the negative investment balance for one unconsolidated entity as it was reclassed to other liabilities. As of May 31, 2019 and November 30, 2018 , the Company’s recorded investments in Homebuilding unconsolidated entities were $983.7 million and $870.2 million , respectively, while the underlying equity in Homebuilding unconsolidated entities partners’ net assets as of May 31, 2019 and November 30, 2018 was $1.3 billion and $1.2 billion , respectively. 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 and deferring equity in earnings on land sales to the Company. Included in the Company's recorded investments in Homebuilding unconsolidated entities is the Company's 40% ownership of FivePoint. As of May 31, 2019 and November 30, 2018 , the carrying amount of the Company's investment was $389.1 million and $342.7 million , respectively. During the six months ended May 31, 2018 , the Company sold 80% of a strategic joint venture to a third-party resulting in a gain of $164.9 million recorded in Homebuilding other income, net within the accompanying Condensed Consolidated Statement of Operations and Comprehensive Income (Loss). The Homebuilding unconsolidated entities in which the Company has investments usually finance their activities with a combination of partner equity and debt financing. In some instances, the Company and its partners have guaranteed debt of certain unconsolidated entities. The total debt of the Homebuilding unconsolidated entities in which the Company has investments, including Lennar's maximum recourse exposure, were as follows: (Dollars in thousands) May 31, November 30, Non-recourse bank debt and other debt (partner’s share of several recourse) $ 46,816 48,313 Non-recourse debt with completion guarantees 144,588 239,568 Non-recourse debt without completion guarantees 634,086 861,371 Non-recourse debt to the Company 825,490 1,149,252 The Company’s maximum recourse exposure (1) 9,653 65,707 Debt issuance costs (9,868 ) (12,403 ) Total debt (1) $ 825,275 1,202,556 The Company’s maximum recourse exposure as a % of total JV debt 1 % 5 % (1) As of May 31, 2019 and November 30, 2018 , the Company's maximum recourse exposure was primarily related to the Company providing repayment guarantees on two and four unconsolidated entities' debt, respectively. The decrease in maximum recourse exposure and total debt was primarily related to the Company's consolidation of a previously unconsolidated entity as of May 31, 2019 . In most instances in which the Company has guaranteed debt of a Homebuilding unconsolidated entity, the Company’s partners have also guaranteed that debt and are required to contribute their share of the guarantee payments. In a repayment guarantee, the Company and its venture partners guarantee repayment of a portion or all of the debt in the event of default before the lender would have to exercise its rights against the collateral. In connection with many of the loans to Homebuilding unconsolidated entities, the Company and its joint venture partners (or entities related to them) have been required to give guarantees of completion to the lenders. Those completion guarantees may require that the guarantors complete the construction of the improvements for which the financing was obtained. If the construction is to be done in phases, the guarantee generally is limited to completing only the phases as to which construction has already commenced and for which loan proceeds were used. If the Company is required to make a payment under any guarantee, the payment would constitute a capital contribution or loan to the Homebuilding unconsolidated entity and increase the Company’s investment in the unconsolidated entity and its share of any funds the unconsolidated entity distributes. As of both May 31, 2019 and November 30, 2018 , the fair values of the repayment guarantees, maintenance guarantees, and completion guarantees were not material. The Company believes that as of May 31, 2019 , in the event it becomes legally obligated to perform under a guarantee of the obligation of a Homebuilding unconsolidated entity due to a triggering event under a guarantee, the collateral would be sufficient to repay at least a significant portion of the obligation or the Company and its partners would contribute additional capital into the venture. In certain instances, the Company has placed performance letters of credit and surety bonds with municipalities with regard to obligations of its joint ventures (see Note 12 of the Notes to the Condensed Consolidated Financial Statements). |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
May 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity The following table reflects the changes in equity attributable to both Lennar Corporation and the noncontrolling interests of its consolidated subsidiaries in which it has less than a 100% ownership interest for both the six months ended May 31, 2019 and 2018 : Stockholders’ Equity (In thousands) Total Equity Class A Class B Additional Treasury Stock Accumulated Other Comprehensive Income (Loss) Retained Earnings Noncontrolling Interests Balance at November 30, 2018 $ 14,682,957 29,499 3,944 8,496,677 (435,869 ) (366 ) 6,487,650 101,422 Net earnings (including net loss attributable to noncontrolling interests) 658,293 — — — — — 661,382 (3,089 ) Employee stock and directors plans (691 ) 4 — 1,761 (2,456 ) — — — Purchases of treasury stock (98,781 ) — — — (98,781 ) — — — Amortization of restricted stock 31,390 — — 31,390 — — — — Cash dividends (25,877 ) — — — — — (25,877 ) — Receipts related to noncontrolling interests 8,937 — — — — — — 8,937 Payments related to noncontrolling interests (23,317 ) — — — — — — (23,317 ) Non-cash consolidations, net 8,894 — — — — — — 8,894 Cumulative-effect of accounting change (see Note 1 to the Notes to the Condensed Consolidated Financial Statements) 9,753 — — — — — 9,753 — Non-cash activity related to noncontrolling interests (5,616 ) — — — — — — (5,616 ) Total other comprehensive income, net of tax 593 — — — — 593 — — Balance at May 31, 2019 $ 15,246,535 29,503 3,944 8,529,828 (537,106 ) 227 7,132,908 87,231 Stockholders’ Equity (In thousands) Total Equity Class A Class B Additional Treasury Stock Accumulated Other Comprehensive Income (Loss) Retained Earnings Noncontrolling Interests Balance at November 30, 2017 $ 7,986,132 20,543 3,769 3,142,013 (136,020 ) 1,034 4,840,978 113,815 Net earnings (including net earnings attributable to noncontrolling interests) 451,666 — — — — — 446,472 5,194 Employee stock and directors plans (24,205 ) 57 — 4,266 (28,532 ) — 4 — Stock issuance in connection with CalAtlantic acquisition 5,070,006 8,408 168 5,061,430 — — — — Conversion of convertible senior notes to Class A common stock 217,154 365 7 216,782 — — — — Amortization of restricted stock 33,720 — — 33,720 — — — — Cash dividends (22,780 ) — — — — — (22,780 ) — Receipts related to noncontrolling interests 3,882 — — — — — — 3,882 Payments related to noncontrolling interests (30,412 ) — — — — — — (30,412 ) Non-cash activity to noncontrolling interests 15,080 — — — — — — 15,080 Total other comprehensive loss, net of tax (1,373 ) — — — — (1,373 ) — — Balance at May 31, 2018 $ 13,698,870 29,373 3,944 8,458,211 (164,552 ) (339 ) 5,264,674 107,559 On April 10, 2019, the Company's Board of Directors declared a quarterly cash dividend of $0.04 per share on both of its Class A and Class B common stock, payable on May 8, 2019 to holder of record at the close of business on April 24, 2019. On June 26, 2019, the Company's Board of Directors declared a quarterly cash dividend of $0.04 per share on both of its Class A and Class B common stock, payable on July 25, 2019 to holder of record at the close of business on July 11, 2019. The Company approved and paid cash dividends of $0.04 per share for both its Class A and Class B common stock in each quarter for the year ended November 30, 2018. In January 2019, the Company's Board of Directors authorized the repurchase of up to the lesser of $1 billion in value, or 25 million in shares of the Company's outstanding Class A and Class B common stock. The repurchase has no expiration date. During the three months ended May 31, 2019 , under this repurchase program, the Company repurchased one million shares of its Class A common stock for approximately $51.8 million at an average share price of $51.76 . During the six months ended May 31, 2019 , under this repurchase program, the Company repurchased two million shares of its Class A common stock for approximately $98.8 million at an average share price of $49.37 . |
Income Taxes
Income Taxes | 6 Months Ended |
May 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes and effective tax rate were as follows: Three Months Ended Six Months Ended May 31, May 31, (Dollars in thousands) 2019 2018 2019 2018 Provision for income taxes $140,530 75,961 220,230 208,572 Effective tax rate (1) 25.0 % 19.7 % 25.0 % 31.8 % (1) For the three and six months ended May 31, 2019 , the effective tax rate included state income tax expense and non-deductible executive compensation, partially offset by solar tax credits. For the three months ended May 31, 2018 , the effective tax rate included tax benefits for the domestic production activities deduction and energy tax credits, offset primarily by state income tax expenses. For the six months ended May 31, 2018 , the effective tax rate included a $68.6 million non-cash one-time write down of the deferred tax assets due to the enactment of the Tax Cuts and Jobs Act, offset primarily by tax benefits for the domestic production activities deduction and energy tax credits. Excluding the impact of the write down of the deferred tax assets, the effective tax rate for the six months ended May 31, 2018 was 21.4% . As of May 31, 2019 and November 30, 2018 , the Company's deferred tax assets, net, included in the condensed consolidated balance sheets were $413.5 million and $515.5 million , respectively. As of both May 31, 2019 and November 30, 2018 , the Company had $14.7 million of gross unrecognized tax benefits. At May 31, 2019 , the Company had $54.2 million accrued for interest and penalties, which increased $1.3 million during the six months ended May 31, 2019 . At November 30, 2018 , the Company had $52.9 million accrued for interest and penalties. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
May 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net earnings attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. All outstanding nonvested shares that contain non-forfeitable rights to dividends or dividend equivalents that participate in undistributed earnings with common stock are considered participating securities and are included in computing earnings per share pursuant to the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating securities according to dividends or dividend equivalents and participation rights in undistributed earnings. The Company’s restricted common stock ("nonvested shares") is considered participating securities. Basic and diluted earnings per share were calculated as follows: Three Months Ended Six Months Ended May 31, May 31, (In thousands, except per share amounts) 2019 2018 2019 2018 Numerator: Net earnings attributable to Lennar $ 421,472 310,257 661,382 446,472 Less: distributed earnings allocated to nonvested shares 94 99 193 214 Less: undistributed earnings allocated to nonvested shares 3,063 2,557 4,987 3,929 Numerator for basic earnings per share 418,315 307,601 656,202 442,329 Less: net amount attributable to noncontrolling interests in Rialto's Carried Interest Incentive Plan (1) 3,331 240 3,654 449 Plus: interest on convertible senior notes — 54 — 80 Plus: undistributed earnings allocated to convertible shares — 12 — 15 Numerator for diluted earnings per share $ 414,984 307,427 652,548 441,975 Denominator: Denominator for basic earnings per share - weighted average common shares outstanding 320,329 325,259 320,834 289,462 Effect of dilutive securities: Shared based payments 1 92 6 73 Convertible senior notes — 1,467 — 1,098 Denominator for diluted earnings per share - weighted average common shares outstanding 320,330 326,818 320,840 290,633 Basic earnings per share $ 1.31 0.95 2.05 1.53 Diluted earnings per share $ 1.30 0.94 2.03 1.52 (1) The amounts presented relate to Rialto's Carried Interest Incentive Plan and represent the difference between the advanced tax distributions received from the Rialto funds included in the Lennar Other segment and the amount Lennar is assumed to own. For both the three and six months ended May 31, 2019 and 2018 , there were no options to purchase shares of common stock that were outstanding and anti-dilutive. |
Financial Services Segment
Financial Services Segment | 6 Months Ended |
May 31, 2019 | |
Segment Reporting [Abstract] | |
Operating and Reporting Segments | Operating and Reporting Segments 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: (1) Homebuilding East (2) Homebuilding Central (3) Homebuilding Texas (4) Homebuilding West (5) Financial Services (6) Multifamily (7) Lennar Other Information about homebuilding activities in states which are not economically similar to other states in the same geographic area is grouped under "Homebuilding Other," which is not considered a reportable segment. 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. The Company’s reportable Homebuilding segments and all other homebuilding operations not required to be reported separately have homebuilding divisions located in: East: Florida, New Jersey, North Carolina and South Carolina Central: Georgia, Illinois, Indiana, Maryland, Minnesota and Virginia Texas: Texas West: Arizona, California, Colorado, Nevada, Oregon, Utah and Washington Other: Urban divisions and other homebuilding related investments primarily in California, including FivePoint Holdings, LLC ("FivePoint") 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. Financial information relating to the Company’s operations was as follows: (In thousands) May 31, November 30, 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. Financial Services Segment The assets and liabilities related to the Financial Services segment were as follows: (In thousands) May 31, November 30, 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. 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 (1) Subsequent to May 31, 2019, the warehouse repurchase facility maturity was extended to June 2020 and the maximum aggregate commitment amount decreased to $500 million . (2) Maximum aggregate commitment includes an uncommitted amount of $300 million . (3) Maximum aggregate commitment includes an uncommitted amount of $400 million . (4) Maximum aggregate commitment includes an uncommitted amount of $300 million . 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 by collecting receivables on loans sold but not yet paid for. Without the facilities, the Financial Services segment would have to use cash from operations and other funding sources to finance its lending activities. 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. The activity in the Company’s loan origination liabilities was as follows: 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 Rialto Mortgage Finance - loans held-for-sale 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. During the six months ended May 31, 2018 , RMF originated commercial loans with a total principal balance of $663.8 million , all of which were recorded as loans held-for-sale, and sold $556.3 million of commercial loans into six separate securitizations. 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 (1) RMF uses this warehouse repurchase facility to finance the origination of floating rate accrual loans, which are reported as accrual loans within loans held-for-investment, net. There were no borrowings under this facility as of both May 31, 2019 and November 30, 2018 . Borrowings under the facilities that finance RMF's commercial loan originations and securitization activities were $155.9 million and $178.8 million as of May 31, 2019 and November 30, 2018 , respectively, and were secured by a 75% interest in the originated commercial loans financed. The facilities require immediate repayment of the 75% interest in the 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. Investments held-to-maturity 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% . Multifamily Segment The Company is actively involved, primarily through unconsolidated entities, in the development, construction and property management of multifamily rental properties. The Multifamily segment focuses on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S. markets. The assets and liabilities related to the Multifamily segment were as follows: (In thousands) May 31, November 30, 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. 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. Summarized condensed financial information on a combined 100% basis related to Multifamily's investments in unconsolidated entities that are accounted for by the equity method was as follows: Balance Sheets (Dollars in thousands) May 31, November 30, 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 (1) Notes payable are net of debt issuance costs of $21.0 million and $15.7 million , as of May 31, 2019 and November 30, 2018 , respectively. Statements of Operations 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 (1) 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. Lennar Other primarily includes fund investments the Company retained when it sold the Rialto asset and investment management platform, as well as strategic investments in technology companies. The assets and liabilities related to Lennar Other were as follows: (In thousands) May 31, November 30, 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 Investments held-to-maturity 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% . |
Multifamily Segment
Multifamily Segment | 6 Months Ended |
May 31, 2019 | |
Segment Reporting [Abstract] | |
Operating and Reporting Segments | Operating and Reporting Segments 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: (1) Homebuilding East (2) Homebuilding Central (3) Homebuilding Texas (4) Homebuilding West (5) Financial Services (6) Multifamily (7) Lennar Other Information about homebuilding activities in states which are not economically similar to other states in the same geographic area is grouped under "Homebuilding Other," which is not considered a reportable segment. 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. The Company’s reportable Homebuilding segments and all other homebuilding operations not required to be reported separately have homebuilding divisions located in: East: Florida, New Jersey, North Carolina and South Carolina Central: Georgia, Illinois, Indiana, Maryland, Minnesota and Virginia Texas: Texas West: Arizona, California, Colorado, Nevada, Oregon, Utah and Washington Other: Urban divisions and other homebuilding related investments primarily in California, including FivePoint Holdings, LLC ("FivePoint") 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. Financial information relating to the Company’s operations was as follows: (In thousands) May 31, November 30, 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. Financial Services Segment The assets and liabilities related to the Financial Services segment were as follows: (In thousands) May 31, November 30, 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. 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 (1) Subsequent to May 31, 2019, the warehouse repurchase facility maturity was extended to June 2020 and the maximum aggregate commitment amount decreased to $500 million . (2) Maximum aggregate commitment includes an uncommitted amount of $300 million . (3) Maximum aggregate commitment includes an uncommitted amount of $400 million . (4) Maximum aggregate commitment includes an uncommitted amount of $300 million . 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 by collecting receivables on loans sold but not yet paid for. Without the facilities, the Financial Services segment would have to use cash from operations and other funding sources to finance its lending activities. 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. The activity in the Company’s loan origination liabilities was as follows: 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 Rialto Mortgage Finance - loans held-for-sale 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. During the six months ended May 31, 2018 , RMF originated commercial loans with a total principal balance of $663.8 million , all of which were recorded as loans held-for-sale, and sold $556.3 million of commercial loans into six separate securitizations. 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 (1) RMF uses this warehouse repurchase facility to finance the origination of floating rate accrual loans, which are reported as accrual loans within loans held-for-investment, net. There were no borrowings under this facility as of both May 31, 2019 and November 30, 2018 . Borrowings under the facilities that finance RMF's commercial loan originations and securitization activities were $155.9 million and $178.8 million as of May 31, 2019 and November 30, 2018 , respectively, and were secured by a 75% interest in the originated commercial loans financed. The facilities require immediate repayment of the 75% interest in the 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. Investments held-to-maturity 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% . Multifamily Segment The Company is actively involved, primarily through unconsolidated entities, in the development, construction and property management of multifamily rental properties. The Multifamily segment focuses on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S. markets. The assets and liabilities related to the Multifamily segment were as follows: (In thousands) May 31, November 30, 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. 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. Summarized condensed financial information on a combined 100% basis related to Multifamily's investments in unconsolidated entities that are accounted for by the equity method was as follows: Balance Sheets (Dollars in thousands) May 31, November 30, 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 (1) Notes payable are net of debt issuance costs of $21.0 million and $15.7 million , as of May 31, 2019 and November 30, 2018 , respectively. Statements of Operations 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 (1) 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. Lennar Other primarily includes fund investments the Company retained when it sold the Rialto asset and investment management platform, as well as strategic investments in technology companies. The assets and liabilities related to Lennar Other were as follows: (In thousands) May 31, November 30, 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 Investments held-to-maturity 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% . |
Lennar Other
Lennar Other | 6 Months Ended |
May 31, 2019 | |
Segment Reporting [Abstract] | |
Operating and Reporting Segments | Operating and Reporting Segments 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: (1) Homebuilding East (2) Homebuilding Central (3) Homebuilding Texas (4) Homebuilding West (5) Financial Services (6) Multifamily (7) Lennar Other Information about homebuilding activities in states which are not economically similar to other states in the same geographic area is grouped under "Homebuilding Other," which is not considered a reportable segment. 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. The Company’s reportable Homebuilding segments and all other homebuilding operations not required to be reported separately have homebuilding divisions located in: East: Florida, New Jersey, North Carolina and South Carolina Central: Georgia, Illinois, Indiana, Maryland, Minnesota and Virginia Texas: Texas West: Arizona, California, Colorado, Nevada, Oregon, Utah and Washington Other: Urban divisions and other homebuilding related investments primarily in California, including FivePoint Holdings, LLC ("FivePoint") 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. Financial information relating to the Company’s operations was as follows: (In thousands) May 31, November 30, 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. Financial Services Segment The assets and liabilities related to the Financial Services segment were as follows: (In thousands) May 31, November 30, 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. 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 (1) Subsequent to May 31, 2019, the warehouse repurchase facility maturity was extended to June 2020 and the maximum aggregate commitment amount decreased to $500 million . (2) Maximum aggregate commitment includes an uncommitted amount of $300 million . (3) Maximum aggregate commitment includes an uncommitted amount of $400 million . (4) Maximum aggregate commitment includes an uncommitted amount of $300 million . 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 by collecting receivables on loans sold but not yet paid for. Without the facilities, the Financial Services segment would have to use cash from operations and other funding sources to finance its lending activities. 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. The activity in the Company’s loan origination liabilities was as follows: 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 Rialto Mortgage Finance - loans held-for-sale 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. During the six months ended May 31, 2018 , RMF originated commercial loans with a total principal balance of $663.8 million , all of which were recorded as loans held-for-sale, and sold $556.3 million of commercial loans into six separate securitizations. 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 (1) RMF uses this warehouse repurchase facility to finance the origination of floating rate accrual loans, which are reported as accrual loans within loans held-for-investment, net. There were no borrowings under this facility as of both May 31, 2019 and November 30, 2018 . Borrowings under the facilities that finance RMF's commercial loan originations and securitization activities were $155.9 million and $178.8 million as of May 31, 2019 and November 30, 2018 , respectively, and were secured by a 75% interest in the originated commercial loans financed. The facilities require immediate repayment of the 75% interest in the 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. Investments held-to-maturity 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% . Multifamily Segment The Company is actively involved, primarily through unconsolidated entities, in the development, construction and property management of multifamily rental properties. The Multifamily segment focuses on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S. markets. The assets and liabilities related to the Multifamily segment were as follows: (In thousands) May 31, November 30, 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. 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. Summarized condensed financial information on a combined 100% basis related to Multifamily's investments in unconsolidated entities that are accounted for by the equity method was as follows: Balance Sheets (Dollars in thousands) May 31, November 30, 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 (1) Notes payable are net of debt issuance costs of $21.0 million and $15.7 million , as of May 31, 2019 and November 30, 2018 , respectively. Statements of Operations 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 (1) 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. Lennar Other primarily includes fund investments the Company retained when it sold the Rialto asset and investment management platform, as well as strategic investments in technology companies. The assets and liabilities related to Lennar Other were as follows: (In thousands) May 31, November 30, 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 Investments held-to-maturity 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% . |
Cash and Cash Equivalents and R
Cash and Cash Equivalents and Restricted Cash | 6 Months Ended |
May 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Due to the short maturity period of cash equivalents, the carrying amounts of these instruments approximate their fair values. Homebuilding restricted cash consists of customer deposits on home sales held in restricted accounts until title transfers to the homebuyer, as required by the state and local governments in which the homes were sold, as well as funds on deposit to secure and support performance obligations. Financial Services’ restricted cash primarily consists of cash balances required by certain warehouse lines of credit agreements and proceeds from loan sales not yet remitted to a warehouse bank. Financial Services' restricted cash also included upfront deposits and application fees RMF receives before originating loans and is recognized as income once the loan has been originated, as well as cash held in escrow by the Company’s loan servicer provider on behalf of customers and lenders and is disbursed in accordance with agreements between the transacting parties. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the condensed consolidated statements of cash flows to the respective condensed consolidated balance sheets: May 31, (In thousands) 2019 2018 Homebuilding: Cash and cash equivalents $ 800,678 931,753 Restricted cash 11,687 17,509 Financial Services: Cash and cash equivalents 171,892 162,992 Restricted cash 14,868 12,892 Multifamily: Cash and cash equivalents 5,203 15,380 Lennar Other: Cash and cash equivalents 15,768 43,729 Restricted cash 975 12,096 Total cash and cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows $ 1,021,071 1,196,351 Homebuilding cash and cash equivalents as of May 31, 2019 and November 30, 2018 included $478.9 million and $926.1 million , respectively, of cash held in escrow for approximately three days . |
Homebuilding Senior Notes and O
Homebuilding Senior Notes and Other Debts Payable | 6 Months Ended |
May 31, 2019 | |
Debt Disclosure [Abstract] | |
Homebuilding Senior Notes and Other Debts Payable | Homebuilding Senior Notes and Other Debts Payable (Dollars in thousands) May 31, November 30, Unsecured revolving credit facility $ 550,000 — 4.500% senior notes due 2019 499,981 499,585 4.50% senior notes due 2019 599,602 599,176 6.625% senior notes due 2020 (1) 307,701 311,735 2.95% senior notes due 2020 299,129 298,838 8.375% senior notes due 2021 (1) 427,378 435,897 4.750% senior notes due 2021 498,502 498,111 6.25% senior notes due December 2021 (1) 312,768 315,283 4.125% senior notes due 2022 597,390 596,894 5.375% senior notes due 2022 (1) 259,627 261,055 4.750% senior notes due 2022 571,104 570,564 4.875% senior notes due December 2023 396,156 395,759 4.500% senior notes due 2024 646,440 646,078 5.875% senior notes due 2024 (1) 450,496 452,833 4.750% senior notes due 2025 497,336 497,114 5.25% senior notes due 2026 (1) 408,527 409,133 5.00% senior notes due 2027 (1) 353,083 353,275 4.75% senior notes due 2027 892,672 892,297 0.25% convertible senior notes due 2019 — 1,291 Mortgage notes on land and other debt 823,049 508,950 $ 9,390,941 8,543,868 (1) These notes were obligations of CalAtlantic when it was acquired, and were subsequently exchanged in part for notes of Lennar Corporation as follows: $267.7 million principal amount of 6.625% senior notes due 2020 , $397.6 million principal amount of 8.375% senior notes due 2021 , $292.0 million principal amount of 6.25% senior notes due 2021 , $240.8 million principal amount of 5.375% senior notes due 2022 , $421.4 million principal amount of 5.875% senior notes due 2024 , $395.5 million principal amount of 5.25% senior notes due 2026 and $347.3 million principal amount of 5.00% senior notes due 2027 . As part of purchase accounting, the senior notes have been recorded at their fair value as of the date of acquisition (February 12, 2018). The carrying amounts of the senior notes in the table above are net of debt issuance costs of $26.9 million and $31.2 million as of May 31, 2019 and November 30, 2018 , respectively. In April 2019, the Company amended the credit agreement governing its unsecured revolving credit facility (the "Credit Facility") to increase the commitments from $2.3 billion to $2.4 billion and extend the maturity one year to April 2024, with $50 million maturing in June 2020. The Credit Facility has a $400 million accordion feature, subject to additional commitments, thus the maximum borrowings are $2.8 billion . The proceeds available under the Credit Facility, which are subject to specified conditions for borrowing, may be used for working capital and general corporate purposes. The credit agreement also provides that up to $500 million in commitments may be used for letters of credit. Under the Credit Facility agreement, the Company is required to maintain a minimum consolidated tangible net worth, a maximum leverage ratio and either a liquidity or an interest coverage ratio. These ratios are calculated per the Credit Facility agreement, which involves adjustments to GAAP financial measures. The Company believes it was in compliance with its debt covenants at May 31, 2019 . In addition, the Company had $315 million of letter of credit facilities with different financial institutions. The Company’s performance letters of credit outstanding were $663.0 million and $598.4 million , at May 31, 2019 and November 30, 2018 , respectively. The Company’s financial letters of credit outstanding were $158.5 million and $165.4 million , at May 31, 2019 and November 30, 2018 , respectively. Performance letters of credit are generally posted with regulatory bodies to guarantee the Company’s performance of certain development and construction activities. Financial letters of credit are generally posted in lieu of cash deposits on option contracts, for insurance risks, credit enhancements and as other collateral. Additionally, at May 31, 2019 , the Company had outstanding surety bonds of $2.8 billion including performance surety bonds related to site improvements at various projects (including certain projects in the Company’s joint ventures) and financial surety bonds. Although significant development and construction activities have been completed related to these site improvements, these bonds are generally not released until all development and construction activities are completed. As of May 31, 2019 , there were approximately $1.3 billion , or 46% , of anticipated future costs to complete related to these site improvements. The Company does not presently anticipate any draws upon these bonds or letters of credit, but if any such draws occur, the Company does not believe they would have a material effect on its financial position, results of operations or cash flows. Subsequent to May 31, 2019, the Company redeemed $500 million aggregate principal amount of its 4.500% senior notes due June 2019. The redemption price, which was paid in cash, was 100% of the principal amount plus accrued but unpaid interest. The Company's senior notes are guaranteed by substantially all of the Company's 100% owned homebuilding subsidiaries and some of the Company's other subsidiaries. Although the guarantees are full, unconditional and joint and several while they are in effect, (i) a subsidiary will cease to be a guarantor at any time when it is not directly or indirectly guaranteeing at least $75 million of debt of Lennar Corporation (the parent company), and (ii) 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. |
Product Warranty
Product Warranty | 6 Months Ended |
May 31, 2019 | |
Product Warranties Disclosures [Abstract] | |
Product Warranty | Product Warranty Warranty and similar reserves for homes are established at an amount estimated to be adequate to cover potential costs for materials and labor with regard to warranty-type claims expected to be incurred subsequent to the delivery of a home. Reserves are determined based on historical data and trends with respect to similar product types and geographical areas. The Company regularly monitors the warranty reserve and makes adjustments to its pre-existing warranties in order to reflect changes in trends and historical data as information becomes available. Warranty reserves are included in Homebuilding other liabilities in the condensed consolidated balance sheets. The activity in the Company’s warranty reserve was as follows: Three Months Ended Six Months Ended May 31, May 31, (In thousands) 2019 2018 2019 2018 Warranty reserve, beginning of the period $ 295,622 270,056 319,109 164,619 Warranties issued 47,855 47,855 81,826 72,544 Adjustments to pre-existing warranties from changes in estimates (1) 2,004 7,227 (7,523 ) 10,095 Warranties assumed related to acquisitions — 9,150 — 117,554 Payments (53,857 ) (39,578 ) (101,788 ) (70,102 ) Warranty reserve, end of period $ 291,624 294,710 291,624 294,710 (1) The adjustments to pre-existing warranties from changes in estimates are primarily related to specific claims for certain of the Company's homebuilding communities and other adjustments. |
Share-Based Payments
Share-Based Payments | 6 Months Ended |
May 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payments | Share-Based Payments During the three and six months ended May 31, 2019 , the Company granted employees an immaterial number of nonvested shares. During the three months ended May 31, 2018 , the Company granted employees an immaterial number of nonvested shares. During the six months ended May 31, 2018 the Company granted 0.4 million nonvested shares. Compensation expense related to the Company’s nonvested shares for the three and six months ended May 31, 2019 was $14.5 million and $31.4 million , respectively. Compensation expense related to the Company’s nonvested shares for the three and six months ended May 31, 2018 was $16.0 million and $33.7 million , respectively. |
Financial Instruments and Fair
Financial Instruments and Fair Value Disclosures | 6 Months Ended |
May 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Disclosures | Financial Instruments and Fair Value Disclosures The following table presents the carrying amounts and estimated fair values of financial instruments held by the Company at May 31, 2019 and November 30, 2018 , using available market information and what the Company believes to be appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies might have a material effect on the estimated fair value amounts. The table excludes cash and cash equivalents, restricted cash, receivables, net and accounts payable, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments. May 31, 2019 November 30, 2018 (In thousands) Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value ASSETS Financial Services: Loans held-for-investment, net Level 3 $ 76,248 71,872 70,216 63,794 Investments held-to-maturity Level 3 $ 167,014 194,796 136,982 149,767 Investments held-to-maturity Level 2 $ 32,398 32,366 52,490 52,220 Lennar Other: Investments held-to-maturity Level 3 $ 60,449 64,364 59,974 72,986 LIABILITIES Homebuilding senior notes and other debts payable Level 2 $ 9,390,941 9,560,305 8,543,868 8,336,166 Financial Services notes and other debts payable Level 2 $ 1,214,017 1,215,548 1,558,702 1,559,718 Multifamily notes payable Level 2 $ 39,662 39,662 — — Lennar Other notes and other debts payable Level 2 $ 15,178 15,178 14,488 14,488 The following methods and assumptions are used by the Company in estimating fair values: Financial Services —The fair values above are based on quoted market prices, if available. The fair values for instruments that do not have quoted market prices are estimated by the Company on the basis of discounted cash flows or other financial information. For notes and other debts payable, the fair values approximate their carrying value due to variable interest pricing terms and the short-term nature of the borrowings. Lennar Other —The fair value for investments held-to-maturity is based on discounted cash flows. For notes and other debts payable, the fair value is calculated based on discounted cash flows using quoted interest rates and for the warehouse repurchase financing agreements fair values approximate their carrying value due to their short-term maturities. Homebuilding —For senior notes and other debts payable, the fair value of fixed-rate borrowings is primarily based on quoted market prices and the fair value of variable-rate borrowings is based on expected future cash flows calculated using current market forward rates. Multifamily —For notes payable, the fair values approximate their carrying value due to variable interest pricing terms and the short-term nature of the borrowings. Fair Value Measurements: GAAP provides a framework for measuring fair value, expands disclosures about fair value measurements and establishes a fair value hierarchy which prioritizes the inputs used in measuring fair value summarized as follows: Level 1: Fair value determined based on quoted prices in active markets for identical assets. Level 2: Fair value determined using significant other observable inputs. Level 3: Fair value determined using significant unobservable inputs. The Company’s financial instruments measured at fair value on a recurring basis are summarized below: (In thousands) Fair Value Hierarchy Fair Value at Fair Value at Financial Services Assets (Liabilities): RMF loans held-for-sale (1) Level 3 $ 259,599 61,691 Financial Services residential loans held-for-sale (2) Level 2 $ 1,160,676 1,152,198 Investments available-for-sale Level 1 $ 3,356 4,161 Mortgage loan commitments Level 2 $ 25,225 16,373 Forward contracts Level 2 $ (11,273 ) (10,360 ) Mortgage servicing rights Level 3 $ 29,419 37,206 (1) The aggregate fair value of RMF loans held-for-sale of $259.6 million at May 31, 2019 exceeded their aggregate principal balance of $255.7 million by $3.9 million . The aggregate fair value of RMF loans held-for-sale of $61.7 million at November 30, 2018 exceeded their aggregate principal balance of $61.0 million by $0.7 million . (2) The aggregate fair value of Financial Services residential loans held-for-sale of $1.2 billion at May 31, 2019 exceeded their aggregate principal balance of $1.1 billion by $40.2 million . The aggregate fair value of Financial Services residential loans held-for-sale of $1.2 billion at November 30, 2018 exceeded their aggregate principal balance of $1.1 billion by $37.3 million . The estimated fair values of the Company’s financial instruments have been determined by using available market information and what the Company believes to be appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies might have a material effect on the estimated fair value amounts. The following methods and assumptions are used by the Company in estimating fair values: RMF loans held-for-sale - The fair value of loans held-for-sale is calculated from model-based techniques that use discounted cash flow assumptions and the Company’s own estimates of CMBS spreads, market interest rate movements and the underlying loan credit quality. Loan values are calculated by allocating the change in value of an assumed CMBS capital structure to each loan. The value of an assumed CMBS capital structure is calculated, generally, by discounting the cash flows associated with each CMBS class at market interest rates and at the Company’s own estimate of CMBS spreads. The Company estimates CMBS spreads by observing the pricing of recent CMBS offerings, secondary CMBS markets, changes in the CMBX index, and general capital and commercial real estate market conditions. Considerations in estimating CMBS spreads include comparing the Company’s current loan portfolio with comparable CMBS offerings containing loans with similar duration, credit quality and collateral composition. These methods use unobservable inputs in estimating a discount rate that is used to assign a value to each loan. While the cash payments on the loans are contractual, the discount rate used and assumptions regarding the relative size of each class in the CMBS capital structure can significantly impact the valuation. Therefore, the estimates used could differ materially from the fair value determined when the loans are sold to a securitization trust. Financial Services residential loans held-for-sale - Fair value is based on independent quoted market prices, where available, or the prices for other mortgage whole loans with similar characteristics. Management believes carrying loans held-for-sale at fair value improves financial reporting by mitigating volatility in reported earnings caused by measuring the fair value of the loans and the derivative instruments used to economically hedge them without having to apply complex hedge accounting provisions. In addition, the Company recognizes the fair value of its rights to service a mortgage loan as revenue upon entering into an interest rate lock loan commitment with a borrower. The fair value of these servicing rights was included in Financial Services’ loans held-for-sale as of May 31, 2019 and November 30, 2018 . Fair value of servicing rights is determined based on actual sales of servicing rights on loans with similar characteristics. Financial Services investments available-for-sale - The fair value of these investments is based on the quoted market prices for similar financial instruments. Financial Services mortgage loan commitments - Fair value of commitments to originate loans is based upon the difference between the current value of similar loans and the price at which the Financial Services segment has committed to originate the loans. The fair value of commitments to sell loan contracts is the estimated amount that the Financial Services segment would receive or pay to terminate the commitments at the reporting date based on market prices for similar financial instruments. In addition, the Company recognizes the fair value of its rights to service a mortgage loan as revenue upon entering into an interest rate lock loan commitment with a borrower. The fair value of servicing rights is determined based on actual sales of servicing rights on loans with similar characteristics. The fair value of the mortgage loan commitments and related servicing rights is included in Financial Services’ other assets. Financial Services forward contracts - Fair value is based on quoted market prices for similar financial instruments. The fair value of forward contracts was included in the Financial Services segment's other liabilities as of May 31, 2019 and November 30, 2018 . The Financial Services segment uses mandatory mortgage-backed securities ("MBS") forward commitments, option contracts and investor commitments to hedge its mortgage-related interest rate exposure. These instruments involve, to varying degrees, elements of credit and interest rate risk. Credit risk associated with MBS forward commitments, option contracts and loan sales transactions is managed by limiting the Company’s counterparties to investment banks, federally regulated bank affiliates and other investors meeting the Company’s credit standards. The segment’s risk, in the event of default by the purchaser, is the difference between the contract price and fair value of the MBS forward commitments and option contracts. At May 31, 2019 , the segment had open commitments amounting to $1.5 billion to sell MBS with varying settlement dates through August 2019. Financial Services mortgage servicing rights - Financial Services records mortgage servicing rights when it sells loans on a servicing-retained basis or through the acquisition or assumption of the right to service a financial asset. The fair value of the mortgage servicing rights is calculated using third-party valuations. The key assumptions, which are generally unobservable inputs, used in the valuation of the mortgage servicing rights include mortgage prepayment rates, discount rates and delinquency rates. As of May 31, 2019 , the key assumptions used in determining the fair value include a 16.3% mortgage prepayment rate, a 12.4% discount rate and a 7.7% delinquency rate. The fair value of mortgage servicing rights is included in the Financial Services segment's other assets. The changes in fair values for Level 1 and Level 2 financial instruments measured on a recurring basis are shown below by financial instrument and financial statement line item: Three Months Ended Six Months Ended May 31, May 31, (In thousands) 2019 2018 2019 2018 Changes in fair value included in Financial Services revenues: Loans held-for-sale $ 13,007 16,586 2,887 289 Mortgage loan commitments 9,111 13,438 8,852 15,219 Forward contracts (9,766 ) (11,039 ) (913 ) (7,876 ) Investments available-for-sale 176 126 176 126 Changes in fair value included in other comprehensive income (loss), net of tax: Financial Services investments available-for-sale 561 (589 ) 769 (1,247 ) Interest on Financial Services loans held-for-sale and RMF loans held-for-sale measured at fair value is calculated based on the interest rate of the loans and recorded as revenues in the Financial Services’ statement of operations and RMF's statement of operations, respectively. The following table represents the reconciliation of the beginning and ending balance for the Level 3 recurring fair value measurements: Three Months Ended May 31, 2019 2018 Financial Services (In thousands) Mortgage servicing rights RMF loans held-for-sale Mortgage servicing rights RMF loans held-for-sale Beginning balance $ 35,448 131,042 36,772 123,398 Purchases/loan originations 672 435,189 1,857 425,870 Sales/loan originations sold, including those not settled — (299,962 ) — (228,141 ) Disposals/settlements (1,378 ) (9,920 ) (3,326 ) — Changes in fair value (1) (5,323 ) 3,022 (711 ) 2,618 Interest and principal paydowns — 228 — 1,628 Ending balance $ 29,419 259,599 34,592 325,373 Six Months Ended May 31, 2019 2018 Financial Services (In thousands) Mortgage servicing rights RMF loans held-for-sale Mortgage servicing rights RMF loans held-for-sale Beginning balance $ 37,206 61,691 31,163 234,403 Purchases/loan originations 2,259 705,311 4,145 663,835 Sales/loan originations sold, including those not settled — (500,549 ) — (575,853 ) Disposals/settlements (2,287 ) (9,920 ) (4,539 ) — Changes in fair value (1) (7,759 ) 3,324 3,823 3,370 Interest and principal paydowns — (258 ) — (382 ) Ending balance $ 29,419 259,599 34,592 325,373 (1) Changes in fair value for RMF loans held-for-sale and Financial Services mortgage servicing rights are included in RMF's and Financial Services' revenues, respectively. The Company’s assets measured at fair value on a nonrecurring basis are those assets for which the Company has recorded valuation adjustments and write-offs. The fair values included in the table below represent only those assets whose carrying values were adjusted to fair value during the respective periods disclosed. The assets measured at fair value on a nonrecurring basis are summarized below: Three Months Ended May 31, 2019 2018 (In thousands) Fair Value Hierarchy Carrying Value Fair Value Total Losses, Net (1) Carrying Value Fair Value Total Losses, Net (1) Non-financial assets Homebuilding: Land and land under development (1) Level 3 $ — — — 13,858 3,122 (10,736 ) Six Months Ended May 31, 2019 2018 (In thousands) Fair Value Hierarchy Carrying Value Fair Value Total Losses, Net (1) Carrying Value Fair Value Total Losses, Net (1) Non-financial assets Homebuilding: Land and land under development (1) Level 3 $ 6,954 3,001 (3,953 ) 66,787 46,687 (20,100 ) (1) Valuation adjustments were included in Homebuilding costs and expenses in the Company's condensed consolidated statements of operations and comprehensive income (loss). Finished homes and construction in progress are included within inventories. Inventories are stated at cost unless the inventory within a community is determined to be impaired, in which case the impaired inventory is written down to fair value. The Company disclosed its accounting policy related to inventories and its review for indicators of impairment in the Summary of Significant Accounting Policies in its Form 10-K for the year ended November 30, 2018 . The Company estimates the fair value of inventory evaluated for impairment based on market conditions and assumptions made by management at the time the inventory is evaluated, which may differ materially from actual results if market conditions or assumptions change. For example, changes in market conditions and other specific developments or changes in assumptions may cause the Company to re-evaluate its strategy regarding previously impaired inventory, as well as inventory not currently impaired but for which indicators of impairment may arise if market deterioration occurs, and certain other assets that could result in further valuation adjustments and/or additional write-offs of option deposits and pre-acquisition costs due to abandonment of those options contracts. On a quarterly basis, the Company reviews its active communities for indicators of potential impairments. As of both May 31, 2019 and 2018 , there were 1,320 active communities, excluding unconsolidated entities, respectively. As of May 31, 2019 , the Company identified 52 communities with 2,213 homesites and a corresponding carrying value of $415.2 million as having potential indicators of impairment. For the six months ended May 31, 2019 , the Company recorded no valuation adjustments related to these communities. As of May 31, 2018 , the Company identified 19 communities with 1,013 homesites and a corresponding carrying value of $113.2 million as having potential indicators of impairment. For the six months ended May 31, 2018 , the Company recorded valuation adjustments of $17.6 million on 570 homesites in three communities with a carrying value of $31.3 million . The table below summarizes the most significant unobservable inputs used in the Company's discounted cash flow model to determine the fair value of its communities for which the Company recorded valuation adjustments during the six months ended May 31, 2018 : Six Months Ended May 31, 2018 Unobservable inputs Range Average selling price $233,000 - $572,000 Absorption rate per quarter (homes) 5 - 16 Discount rate 20% |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
May 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities The Company evaluated the joint venture agreements of its joint ventures that were formed or that had reconsideration events, such as changes in the governing documents or to debt arrangements, during the six months ended May 31, 2019 . Based on the Company's evaluation, during the six months ended May 31, 2019 , the Company consolidated four entities that had a total combined assets and liabilities of $500.7 million and $585.0 million , respectively. During the six months ended May 31, 2019 , there were no VIEs that were deconsolidated. Consolidated VIEs As of May 31, 2019 , the carrying amounts of the VIEs’ assets and non-recourse liabilities that consolidated were $1.4 billion and $928.9 million , respectively. As of November 30, 2018 , the carrying amounts of the VIEs’ assets and non-recourse liabilities that consolidated were $666.2 million and $242.5 million , respectively. Those assets are owned by, and those liabilities are obligations of, the VIEs, not the Company. The increase in VIEs' assets and non-recourse liabilities during the six months ended May 31, 2019 was primarily due to the consolidation of a previously unconsolidated entity, which resulted from a reconsideration event that required the reassessment of a homebuilding unconsolidated entity. The reconsideration event was the change of the entity’s conclusion with respect to future capital calls required to fund operations and debt repayments. Upon reconsideration, the Company determined that the homebuilding entity continued to meet the accounting definition of a VIE and the Company was deemed to be the primary beneficiary. The Company consolidated the previously unconsolidated entity’s net assets at estimated fair value. The determination of fair value of the homebuilding entity’s net assets requires the discounting of estimated cash flows at a rate the Company believes a market participant would determine to be commensurate with the inherent risks associated with the homebuilding entity and related cash flow streams. The Company used a 15% discount rate in determining the fair value of the entity, which was subject to perceived risks associated with the entity’s cash flow streams. There was no non-controlling interest recorded in consolidation. As a result, the Company recorded a one-time loss of $48.9 million from the consolidation which was included in Homebuilding other income (expense), net on the condensed consolidated statements of operations. At May 31, 2019, the consolidated homebuilding entity had total assets and liabilities of $240.5 million and $356.4 million , respectively. A VIE’s assets can only be used to settle obligations of that VIE. The VIEs are not guarantors of the Company’s senior notes or other debts payable. The assets held by a VIE usually are collateral for that VIE’s debt. The Company and other partners do not generally have an obligation to make capital contributions to a VIE unless the Company and/or the other partner(s) have entered into debt guarantees with a VIE’s banks. Other than debt guarantee agreements with a VIE’s banks, there are no liquidity arrangements or agreements to fund capital or purchase assets that could require the Company to provide financial support to a VIE. While the Company has option contracts to purchase land from certain of its VIEs, the Company is not required to purchase the assets and could walk away from the contracts. Unconsolidated VIEs At May 31, 2019 and November 30, 2018 , the Company’s recorded investments in VIEs that are unconsolidated and its estimated maximum exposure to loss were as follows: May 31, 2019 November 30, 2018 (In thousands) Investments in Unconsolidated VIEs Lennar’s Maximum Exposure to Loss Investments in Lennar’s Maximum Homebuilding (1) $ 103,818 104,117 123,064 184,945 Multifamily (2) 495,513 810,723 463,534 710,754 Financial Services (3) 167,014 167,014 136,982 136,982 Lennar Other (4) 65,374 65,374 63,919 63,919 $ 831,719 1,147,228 787,499 1,096,600 (1) As of May 31, 2019 , the maximum exposure to loss of Homebuilding’s investments in unconsolidated VIEs was limited primarily to its investments in the unconsolidated VIEs. As of November 30, 2018 , the maximum exposure to loss of Homebuilding’s investments in unconsolidated VIEs was limited to its investments in the unconsolidated VIEs, except with regard to repayment guarantees of one unconsolidated entity's debt of $54.8 million . (2) As of May 31, 2019 and November 30, 2018 , the maximum exposure to loss of Multifamily's investments in unconsolidated VIEs was limited to its investments in the unconsolidated VIEs, except with regard to the remaining equity commitment of $309.2 million and $237.0 million , respectively, to fund LMV I and LMV II for future expenditures related to the construction and development of its projects and $1.2 million and $4.6 million , respectively, of letters of credit outstanding for certain of the unconsolidated VIEs that could be drawn upon in the event of default under their debt agreements. (3) At both May 31, 2019 and November 30, 2018 , the maximum recourse exposure to loss of the Financial Services segment was limited to its investments in the unconsolidated VIEs, which included $167.0 million and $137.0 million , respectively, related to the Financial Services' CMBS investments held-to-maturity. (4) At both May 31, 2019 and November 30, 2018 , the maximum recourse exposure to loss of the Lennar Other segment was limited to its investments in the unconsolidated VIEs, which included $60.4 million and $60.0 million , respectively, related to the Lennar Other segment's CMBS investments held-to-maturity. While these entities are VIEs, the Company has determined that the power to direct the activities of the VIEs that most significantly impact the VIEs’ economic performance is generally shared and the Company and its partners are not de-facto agents. While the Company generally manages the day-to-day operations of the VIEs, each of these VIEs has an executive committee made up of representatives from each partner. The members of the executive committee have equal votes and major decisions require unanimous consent and approval from all members. The Company does not have the unilateral ability to exercise participating voting rights without partner consent. As of May 31, 2019 , the Company and other partners did not have an obligation to make capital contributions to the VIEs, except for $309.2 million remaining equity commitment to fund LMV I and LMV II for future expenditures related to the construction and development of the projects and $1.2 million of letters of credit outstanding for certain Multifamily unconsolidated VIEs that could be drawn upon in the event of default under their debt agreements. In addition, there are no liquidity arrangements or agreements to fund capital or purchase assets that could require the Company to provide financial support to the VIEs. Except for the unconsolidated VIEs discussed above, the Company and the other partners did not guarantee any debt of the other unconsolidated VIEs. While the Company has option contracts to purchase land from certain of its unconsolidated VIEs, the Company is not required to purchase the assets and could walk away from the contracts. Option Contracts The Company has access to land through option contracts, which generally enables it to control portions of properties owned by third parties (including land funds) and unconsolidated entities until the Company has determined whether to exercise the option. The Company evaluates all option contracts for land to determine whether they are VIEs and, if so, whether the Company is the primary beneficiary of certain of these option contracts. Although the Company does not have legal title to the optioned land, if the Company is deemed to be the primary beneficiary or makes a significant deposit for optioned land, it may need to consolidate the land under option at the purchase price of the optioned land. During the six months ended May 31, 2019 , consolidated inventory not owned increased by $185.7 million with a corresponding increase to liabilities related to consolidated inventory not owned in the accompanying condensed consolidated balance sheet as of May 31, 2019 . The increase was primarily related to the consolidation of option contracts, partially offset by the Company exercising its options to acquire land under previously consolidated contracts. To reflect the purchase price of the inventory consolidated, the Company had a net reclass related to option deposits from consolidated inventory not owned to land under development in the accompanying condensed consolidated balance sheet as of May 31, 2019 . The liabilities related to consolidated inventory not owned primarily represent the difference between the option exercise prices for the optioned land and the Company’s cash deposits. The Company’s exposure to losses related to its option contracts with third parties and unconsolidated entities consisted of its non-refundable option deposits and pre-acquisition costs totaling $326.8 million and $209.5 million at May 31, 2019 and November 30, 2018 , respectively. Additionally, the Company had posted $69.1 million and $72.4 million of letters of credit in lieu of cash deposits under certain land and option contracts as of May 31, 2019 and November 30, 2018 , respectively. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 6 Months Ended |
May 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities The Company is a party to various claims, legal actions and complaints arising in the ordinary course of business. In the opinion of management, the disposition of these matters will not have a material adverse effect on the Company’s consolidated financial statements. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
May 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In March 2016, the FASB issued ASU 2016-02, Leases ("ASU 2016-02"), which provides guidance for accounting for leases. ASU 2016-02 requires lessees to classify leases as either finance or operating leases and to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of the lease classification. The lease classification will determine whether the lease expense is recognized based on an effective interest rate method or on a straight line basis over the term of the lease. Accounting for lessors remains largely unchanged from current GAAP. ASU 2016-02 will be effective for the Company’s fiscal year beginning December 1, 2019 and subsequent interim periods. The Company is currently evaluating the impact the adoption of ASU 2016-02 will have on the Company's condensed consolidated financial statements. Subsequent to the issuance of ASU 2016-02, the FASB issued ASUs 2018-01, Land Easement Practical Expedient for Transition to Topic 842 , 2018-10, Codification Improvements to Topic 842, Leases , 2018-11, Leases (Topic 842): Targeted Improvements, 2018-20, Narrow-Scope Improvements for Lessors , and 2019-01, Leases (Topic 842) Codification Improvements . These ASUs do not change the core principle of the guidance in ASU 2016-02. Instead these amendments are intended to clarify and improve operability of certain topics included within the credit losses standard. These ASUs will have the same effective date and transition requirements as ASU 2016-02. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). ASU 2016-13 significantly changes the impairment model for most financial assets and certain other instruments. ASU 2016-13 will require immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, which will generally result in earlier recognition of allowances for credit losses on loans and other financial instruments. ASU 2016-13 is effective for the Company's fiscal year beginning December 1, 2020 and subsequent interim periods. The Company is currently evaluating the impact the adoption of ASU 2016-13 will have on its condensed consolidated financial statements. Subsequent to the issuance of ASU 2016-13, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments —Credit Losses and ASU 2019-05, Financial Instruments —Credit Losses (Topic 326) Targeted Transition Relief . These ASUs do not change the core principle of the guidance in ASU 2016-13. Instead these amendments are intended to clarify and improve operability of certain topics included within the credit losses standard. These ASUs will have the same effective date and transition requirements as ASU 2016-13. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Accounting for Goodwill Impairment ("ASU 2017-04"). ASU 2017-04 removes the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. A goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 will be effective for the Company’s fiscal year beginning December 1, 2020. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact the adoption of ASU 2017-04 will have on the Company's condensed consolidated financial statements. |
Supplemental Financial Informat
Supplemental Financial Information | 6 Months Ended |
May 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Information | Supplemental Financial Information 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 Guarantor Non-Guarantor 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 Guarantor Non-Guarantor 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 Guarantor Non-Guarantor 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 Guarantor Non-Guarantor 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 Guarantor Non-Guarantor 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 |
Basis of Presentation (Policy)
Basis of Presentation (Policy) | 6 Months Ended |
May 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Consolidation | Basis of Consolidation |
Basis of Accounting | The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended November 30, 2018 . In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for the fair presentation of the accompanying condensed consolidated financial statements have been made. The Company has historically experienced, and expects to continue to experience, variability in quarterly results. The condensed consolidated statements of operations for the three and six months ended May 31, 2019 are not necessarily indicative of the results to be expected for the full year. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Revenue from Contract with Customer [Policy Text Block] | Revenue Recognition Homebuilding revenues and related profits from sales of homes are recognized at the time of the closing of a sale, when title to and possession of the property are transferred to the homebuyer. The Company’s performance obligation, to deliver the agreed-upon home, is generally satisfied in less than one year from the original contract date. Cash proceeds from home closings held in escrow for the Company’s benefit, typically for approximately three days, are included in Homebuilding cash and cash equivalents in the Condensed Consolidated Balance Sheets and disclosed in Note 11 of the Notes to the Condensed Consolidated Financial Statements. Contract liabilities include customer deposits liabilities related to sold but undelivered homes that are included in other liabilities in the Condensed Consolidated Balance Sheets. The Company periodically elects to sell parcels of land to third parties. Cash consideration from land sales is typically due on the closing date, which is generally when performance obligations are satisfied and revenue is recognized as title to and possession of the property are transferred to the buyer. The Company’s financial services’ operations recognize revenues as follows: Title premiums on policies issued directly by the Company are recognized as revenue on the effective date of the title policies. Escrow fees and loan origination revenues are recognized at the time the related real estate transactions are completed, usually upon the close of escrow. Revenues from title policies issued by independent agents are recognized as revenue when notice of issuance is received from the agent, which is generally when cash payment is received by the Company. The Company’s Multifamily segment provides management services with respect to the development, construction and property management of rental projects in joint ventures in which the Company has investments. As a result, the Multifamily segment earns and receives fees, which are generally based upon a stated percentage of development and construction costs and a percentage of gross rental collections. These fees are recorded over the period in which the services are performed using an input method, which properly depicts the level of effort required to complete the management services. In addition, the Multifamily segment provides general contractor services for the construction of some of its rental projects and recognizes the revenue over the period in which the services are performed using an input method, which properly depicts the level of effort required to complete the construction services. These customer contracts require the Company to provide management and general contractor services which represents a performance obligation that the Company satisfies over time. Management fees and general contractor services in the Multifamily segment are included in Multifamily revenue. |
Reclassifications | Reclassifications Certain prior year amounts in the condensed consolidated financial statements have been reclassified to conform with the 2019 presentation. The Company's segments were adjusted to reflect Rialto Mortgage Finance ("RMF") and certain other Rialto assets within the Financial Services segment effective December 1, 2018. The remaining assets retained related to the Company's former Rialto segment were included in the Lennar Other segment. In addition, the Company's strategic technology investments, which were part of Homebuilding, were reclassified to be included in the Lennar Other segment. These reclassifications were between segments and had no impact on the Company's total assets, total equity, revenue or net income in the condensed consolidated financial statements. |
New Accounting Pronouncements | New Accounting Pronouncements In March 2016, the FASB issued ASU 2016-02, Leases ("ASU 2016-02"), which provides guidance for accounting for leases. ASU 2016-02 requires lessees to classify leases as either finance or operating leases and to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of the lease classification. The lease classification will determine whether the lease expense is recognized based on an effective interest rate method or on a straight line basis over the term of the lease. Accounting for lessors remains largely unchanged from current GAAP. ASU 2016-02 will be effective for the Company’s fiscal year beginning December 1, 2019 and subsequent interim periods. The Company is currently evaluating the impact the adoption of ASU 2016-02 will have on the Company's condensed consolidated financial statements. Subsequent to the issuance of ASU 2016-02, the FASB issued ASUs 2018-01, Land Easement Practical Expedient for Transition to Topic 842 , 2018-10, Codification Improvements to Topic 842, Leases , 2018-11, Leases (Topic 842): Targeted Improvements, 2018-20, Narrow-Scope Improvements for Lessors , and 2019-01, Leases (Topic 842) Codification Improvements . These ASUs do not change the core principle of the guidance in ASU 2016-02. Instead these amendments are intended to clarify and improve operability of certain topics included within the credit losses standard. These ASUs will have the same effective date and transition requirements as ASU 2016-02. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). ASU 2016-13 significantly changes the impairment model for most financial assets and certain other instruments. ASU 2016-13 will require immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, which will generally result in earlier recognition of allowances for credit losses on loans and other financial instruments. ASU 2016-13 is effective for the Company's fiscal year beginning December 1, 2020 and subsequent interim periods. The Company is currently evaluating the impact the adoption of ASU 2016-13 will have on its condensed consolidated financial statements. Subsequent to the issuance of ASU 2016-13, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments —Credit Losses and ASU 2019-05, Financial Instruments —Credit Losses (Topic 326) Targeted Transition Relief . These ASUs do not change the core principle of the guidance in ASU 2016-13. Instead these amendments are intended to clarify and improve operability of certain topics included within the credit losses standard. These ASUs will have the same effective date and transition requirements as ASU 2016-13. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Accounting for Goodwill Impairment ("ASU 2017-04"). ASU 2017-04 removes the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. A goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 will be effective for the Company’s fiscal year beginning December 1, 2020. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact the adoption of ASU 2017-04 will have on the Company's condensed consolidated financial statements. |
Business Acquisition (Tables)
Business Acquisition (Tables) | 6 Months Ended |
May 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions | The following table summarizes the purchase price allocation based on the estimated fair value of net assets acquired and liabilities assumed at the date of acquisition: (Dollars in thousands) CalAtlantic shares of common stock outstanding 118,025,879 CalAtlantic shares electing cash conversion 24,083,091 CalAtlantic shares exchanged 93,942,788 Exchange ratio for Class A common stock 0.885 Exchange ratio for Class B common stock 0.0177 Number of shares of Lennar Class A common stock issued in exchange 83,138,277 Number of shares of Lennar Class B common stock issued in exchange (due to Class B common stock dividend) 1,662,172 Consideration attributable to Class A common stock $ 4,933,425 Consideration attributable to Class B common stock 77,823 Consideration attributable to equity awards that convert upon change of control 58,758 Consideration attributable to cash including fractional shares 1,162,341 Total purchase price $ 6,232,347 |
Schedule of Assets and Liabilities Assumed | (In thousands) ASSETS Homebuilding: Cash and cash equivalents, restricted cash and receivables, net $ 55,191 Inventories 6,239,147 Intangible asset (1) 8,000 Investments in unconsolidated entities 151,900 Goodwill (2) 3,305,792 Other assets 561,151 Total Homebuilding assets 10,321,181 Financial Services (2) 355,128 Total assets 10,676,309 LIABILITIES Homebuilding: Accounts payable 306 Senior notes payable and other debts 3,926,152 Other liabilities (3) 374,656 Total Homebuilding liabilities 4,301,114 Financial Services 124,418 Total liabilities 4,425,532 Noncontrolling interests (4) 18,430 Total purchase price $ 6,232,347 (1) Intangible asset includes trade name. The amortization period for the trade name was six months . (2) Goodwill represents the excess of the purchase price over the fair value of assets acquired and liabilities assumed, and it is generally not deductible for income tax purposes. As of the Merger date, goodwill consisted primarily of expected greater efficiencies and opportunities due to increased concentration of local market share, reduced general and administrative costs and reduced homebuilding costs resulting from the merger and cost savings as a result of additional homebuilding and non-homebuilding synergies. The allocation of goodwill among the Company's reporting segments included $1.1 billion to Homebuilding East, $495.0 million to Homebuilding Central, $342.2 million to Homebuilding Texas, $1.4 billion to Homebuilding West, and $175.4 million to Financial Services. (3) Other liabilities includes contingencies assumed at the Merger date, which includes warranty and legal reserves. Warranty reserves for homes are established at an amount estimated to be adequate to cover potential costs for materials and labor with regard to warranty-type claims expected to be incurred subsequent to the delivery of a home. Warranty reserves are determined based on historical data and trends with respect to similar product types and geographical areas. Consistent with ASC 450, Contingencies, legal reserves are established when a loss is considered probable and the amount of loss can be reasonably estimated. (4) Fair value of noncontrolling interests was measured using discounted cash flows of expected future contributions and distributions. |
Operating and Reporting Segme_2
Operating and Reporting Segments (Tables) | 6 Months Ended |
May 31, 2019 | |
Segment Reporting [Abstract] | |
Disclosure Of Financial Information Relating To Company's Operations | Financial information relating to the Company’s operations was as follows: (In thousands) May 31, November 30, 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, November 30, 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, November 30, 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. (In thousands) May 31, November 30, 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 |
Homebuilding Investments in U_2
Homebuilding Investments in Unconsolidated Entities (Tables) | 6 Months Ended |
May 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Balance Sheets (In thousands) May 31, November 30, Assets: Cash and cash equivalents $ 651,681 781,833 Inventories 4,177,728 4,291,470 Other assets 988,714 1,045,274 $ 5,818,123 6,118,577 Liabilities and equity: Accounts payable and other liabilities $ 757,410 874,355 Debt (1) 825,275 1,202,556 Equity 4,235,438 4,041,666 $ 5,818,123 6,118,577 Homebuilding investments in unconsolidated entities (2) $ 983,683 870,201 (1) Debt presented above is net of debt issuance costs of $9.9 million and $12.4 million , as of May 31, 2019 and November 30, 2018 , respectively. The decrease in debt was primarily related to the Company's consolidation of a previously unconsolidated entity as of May 31, 2019 . (2) Homebuilding investments in unconsolidated entities as of November 30, 2018 , does not include $62.0 million of the negative investment balance for one unconsolidated entity as it was reclassed to other liabilities. The total debt of the Homebuilding unconsolidated entities in which the Company has investments, including Lennar's maximum recourse exposure, were as follows: (Dollars in thousands) May 31, November 30, Non-recourse bank debt and other debt (partner’s share of several recourse) $ 46,816 48,313 Non-recourse debt with completion guarantees 144,588 239,568 Non-recourse debt without completion guarantees 634,086 861,371 Non-recourse debt to the Company 825,490 1,149,252 The Company’s maximum recourse exposure (1) 9,653 65,707 Debt issuance costs (9,868 ) (12,403 ) Total debt (1) $ 825,275 1,202,556 The Company’s maximum recourse exposure as a % of total JV debt 1 % 5 % (1) As of May 31, 2019 and November 30, 2018 , the Company's maximum recourse exposure was primarily related to the Company providing repayment guarantees on two and four unconsolidated entities' debt, respectively. The decrease in maximum recourse exposure and total debt was primarily related to the Company's consolidation of a previously unconsolidated entity as of May 31, 2019 . Summarized condensed financial information on a combined 100% basis related to Homebuilding’s unconsolidated entities that are accounted for by the equity method was as follows: Statements of Operations Three Months Ended Six Months Ended May 31, May 31, (In thousands) 2019 2018 2019 2018 Revenues $ 65,686 100,952 156,330 169,141 Costs and expenses 90,363 148,678 214,114 256,102 Other income (1) 75,868 105,192 76,065 105,192 Net earnings of unconsolidated entities $ 51,191 57,466 18,281 18,231 Homebuilding equity in earnings (loss) from unconsolidated entities $ 19,614 (12,670 ) 5,858 (26,798 ) (1) During the three and six months ended May 31, 2019 , other income was primarily attributable to a $64.9 million gain on the settlement of contingent consideration recorded by one Homebuilding unconsolidated entity, of which the Company's pro-rata share was $25.9 million . During the three and six months ended May 31, 2018 , other income was primarily due to FivePoint recording income resulting from the Tax Cuts and Jobs Act of 2017’s reduction in its corporate tax rate to reduce its liability pursuant to its tax receivable agreement (“TRA Liability”) with its non-controlling interests. However, the Company has a 70% interest in the FivePoint TRA Liability. Therefore, the Company did not include in Homebuilding’s equity in earnings (loss) from unconsolidated entities its pro-rata share of earnings related to the Company’s portion of the TRA Liability. As a result, the Company’s unconsolidated entities have net earnings, but the Company has an equity in loss from unconsolidated entities. Summarized condensed financial information on a combined 100% basis related to Multifamily's investments in unconsolidated entities that are accounted for by the equity method was as follows: Balance Sheets (Dollars in thousands) May 31, November 30, 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 (1) Notes payable are net of debt issuance costs of $21.0 million and $15.7 million , as of May 31, 2019 and November 30, 2018 , respectively. Statements of Operations 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 (1) 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. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
May 31, 2019 | |
Equity [Abstract] | |
Schedule of Changes in Equity | The following table reflects the changes in equity attributable to both Lennar Corporation and the noncontrolling interests of its consolidated subsidiaries in which it has less than a 100% ownership interest for both the six months ended May 31, 2019 and 2018 : Stockholders’ Equity (In thousands) Total Equity Class A Class B Additional Treasury Stock Accumulated Other Comprehensive Income (Loss) Retained Earnings Noncontrolling Interests Balance at November 30, 2018 $ 14,682,957 29,499 3,944 8,496,677 (435,869 ) (366 ) 6,487,650 101,422 Net earnings (including net loss attributable to noncontrolling interests) 658,293 — — — — — 661,382 (3,089 ) Employee stock and directors plans (691 ) 4 — 1,761 (2,456 ) — — — Purchases of treasury stock (98,781 ) — — — (98,781 ) — — — Amortization of restricted stock 31,390 — — 31,390 — — — — Cash dividends (25,877 ) — — — — — (25,877 ) — Receipts related to noncontrolling interests 8,937 — — — — — — 8,937 Payments related to noncontrolling interests (23,317 ) — — — — — — (23,317 ) Non-cash consolidations, net 8,894 — — — — — — 8,894 Cumulative-effect of accounting change (see Note 1 to the Notes to the Condensed Consolidated Financial Statements) 9,753 — — — — — 9,753 — Non-cash activity related to noncontrolling interests (5,616 ) — — — — — — (5,616 ) Total other comprehensive income, net of tax 593 — — — — 593 — — Balance at May 31, 2019 $ 15,246,535 29,503 3,944 8,529,828 (537,106 ) 227 7,132,908 87,231 Stockholders’ Equity (In thousands) Total Equity Class A Class B Additional Treasury Stock Accumulated Other Comprehensive Income (Loss) Retained Earnings Noncontrolling Interests Balance at November 30, 2017 $ 7,986,132 20,543 3,769 3,142,013 (136,020 ) 1,034 4,840,978 113,815 Net earnings (including net earnings attributable to noncontrolling interests) 451,666 — — — — — 446,472 5,194 Employee stock and directors plans (24,205 ) 57 — 4,266 (28,532 ) — 4 — Stock issuance in connection with CalAtlantic acquisition 5,070,006 8,408 168 5,061,430 — — — — Conversion of convertible senior notes to Class A common stock 217,154 365 7 216,782 — — — — Amortization of restricted stock 33,720 — — 33,720 — — — — Cash dividends (22,780 ) — — — — — (22,780 ) — Receipts related to noncontrolling interests 3,882 — — — — — — 3,882 Payments related to noncontrolling interests (30,412 ) — — — — — — (30,412 ) Non-cash activity to noncontrolling interests 15,080 — — — — — — 15,080 Total other comprehensive loss, net of tax (1,373 ) — — — — (1,373 ) — — Balance at May 31, 2018 $ 13,698,870 29,373 3,944 8,458,211 (164,552 ) (339 ) 5,264,674 107,559 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
May 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Benefit (Provision) and Effective Tax Rate | The provision for income taxes and effective tax rate were as follows: Three Months Ended Six Months Ended May 31, May 31, (Dollars in thousands) 2019 2018 2019 2018 Provision for income taxes $140,530 75,961 220,230 208,572 Effective tax rate (1) 25.0 % 19.7 % 25.0 % 31.8 % (1) For the three and six months ended May 31, 2019 , the effective tax rate included state income tax expense and non-deductible executive compensation, partially offset by solar tax credits. For the three months ended May 31, 2018 , the effective tax rate included tax benefits for the domestic production activities deduction and energy tax credits, offset primarily by state income tax expenses. For the six months ended May 31, 2018 , the effective tax rate included a $68.6 million non-cash one-time write down of the deferred tax assets due to the enactment of the Tax Cuts and Jobs Act, offset primarily by tax benefits for the domestic production activities deduction and energy tax credits. Excluding the impact of the write down of the deferred tax assets, the effective tax rate for the six months ended May 31, 2018 was 21.4% . |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
May 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator In Earnings Per Share | Basic and diluted earnings per share were calculated as follows: Three Months Ended Six Months Ended May 31, May 31, (In thousands, except per share amounts) 2019 2018 2019 2018 Numerator: Net earnings attributable to Lennar $ 421,472 310,257 661,382 446,472 Less: distributed earnings allocated to nonvested shares 94 99 193 214 Less: undistributed earnings allocated to nonvested shares 3,063 2,557 4,987 3,929 Numerator for basic earnings per share 418,315 307,601 656,202 442,329 Less: net amount attributable to noncontrolling interests in Rialto's Carried Interest Incentive Plan (1) 3,331 240 3,654 449 Plus: interest on convertible senior notes — 54 — 80 Plus: undistributed earnings allocated to convertible shares — 12 — 15 Numerator for diluted earnings per share $ 414,984 307,427 652,548 441,975 Denominator: Denominator for basic earnings per share - weighted average common shares outstanding 320,329 325,259 320,834 289,462 Effect of dilutive securities: Shared based payments 1 92 6 73 Convertible senior notes — 1,467 — 1,098 Denominator for diluted earnings per share - weighted average common shares outstanding 320,330 326,818 320,840 290,633 Basic earnings per share $ 1.31 0.95 2.05 1.53 Diluted earnings per share $ 1.30 0.94 2.03 1.52 (1) The amounts presented relate to Rialto's Carried Interest Incentive Plan and represent the difference between the advanced tax distributions received from the Rialto funds included in the Lennar Other segment and the amount Lennar is assumed to own. |
Financial Services Segment (Tab
Financial Services Segment (Tables) | 6 Months Ended |
May 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Assets and Liabilities | Financial information relating to the Company’s operations was as follows: (In thousands) May 31, November 30, 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, November 30, 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, November 30, 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. (In thousands) May 31, November 30, 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 |
Schedule of Line of Credit Facilities | 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 (1) RMF uses this warehouse repurchase facility to finance the origination of floating rate accrual loans, which are reported as accrual loans within loans held-for-investment, net. There were no borrowings under this facility as of both May 31, 2019 and November 30, 2018 . 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 (1) Subsequent to May 31, 2019, the warehouse repurchase facility maturity was extended to June 2020 and the maximum aggregate commitment amount decreased to $500 million . (2) Maximum aggregate commitment includes an uncommitted amount of $300 million . (3) Maximum aggregate commitment includes an uncommitted amount of $400 million . (4) Maximum aggregate commitment includes an uncommitted amount of $300 million . |
Schedule of Loan Origination Liabilities | The activity in the Company’s loan origination liabilities was as follows: 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 |
Multifamily Segment (Tables)
Multifamily Segment (Tables) | 6 Months Ended |
May 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Assets and Liabilities | Financial information relating to the Company’s operations was as follows: (In thousands) May 31, November 30, 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, November 30, 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, November 30, 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. (In thousands) May 31, November 30, 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 |
Equity Method Investments | Balance Sheets (In thousands) May 31, November 30, Assets: Cash and cash equivalents $ 651,681 781,833 Inventories 4,177,728 4,291,470 Other assets 988,714 1,045,274 $ 5,818,123 6,118,577 Liabilities and equity: Accounts payable and other liabilities $ 757,410 874,355 Debt (1) 825,275 1,202,556 Equity 4,235,438 4,041,666 $ 5,818,123 6,118,577 Homebuilding investments in unconsolidated entities (2) $ 983,683 870,201 (1) Debt presented above is net of debt issuance costs of $9.9 million and $12.4 million , as of May 31, 2019 and November 30, 2018 , respectively. The decrease in debt was primarily related to the Company's consolidation of a previously unconsolidated entity as of May 31, 2019 . (2) Homebuilding investments in unconsolidated entities as of November 30, 2018 , does not include $62.0 million of the negative investment balance for one unconsolidated entity as it was reclassed to other liabilities. The total debt of the Homebuilding unconsolidated entities in which the Company has investments, including Lennar's maximum recourse exposure, were as follows: (Dollars in thousands) May 31, November 30, Non-recourse bank debt and other debt (partner’s share of several recourse) $ 46,816 48,313 Non-recourse debt with completion guarantees 144,588 239,568 Non-recourse debt without completion guarantees 634,086 861,371 Non-recourse debt to the Company 825,490 1,149,252 The Company’s maximum recourse exposure (1) 9,653 65,707 Debt issuance costs (9,868 ) (12,403 ) Total debt (1) $ 825,275 1,202,556 The Company’s maximum recourse exposure as a % of total JV debt 1 % 5 % (1) As of May 31, 2019 and November 30, 2018 , the Company's maximum recourse exposure was primarily related to the Company providing repayment guarantees on two and four unconsolidated entities' debt, respectively. The decrease in maximum recourse exposure and total debt was primarily related to the Company's consolidation of a previously unconsolidated entity as of May 31, 2019 . Summarized condensed financial information on a combined 100% basis related to Homebuilding’s unconsolidated entities that are accounted for by the equity method was as follows: Statements of Operations Three Months Ended Six Months Ended May 31, May 31, (In thousands) 2019 2018 2019 2018 Revenues $ 65,686 100,952 156,330 169,141 Costs and expenses 90,363 148,678 214,114 256,102 Other income (1) 75,868 105,192 76,065 105,192 Net earnings of unconsolidated entities $ 51,191 57,466 18,281 18,231 Homebuilding equity in earnings (loss) from unconsolidated entities $ 19,614 (12,670 ) 5,858 (26,798 ) (1) During the three and six months ended May 31, 2019 , other income was primarily attributable to a $64.9 million gain on the settlement of contingent consideration recorded by one Homebuilding unconsolidated entity, of which the Company's pro-rata share was $25.9 million . During the three and six months ended May 31, 2018 , other income was primarily due to FivePoint recording income resulting from the Tax Cuts and Jobs Act of 2017’s reduction in its corporate tax rate to reduce its liability pursuant to its tax receivable agreement (“TRA Liability”) with its non-controlling interests. However, the Company has a 70% interest in the FivePoint TRA Liability. Therefore, the Company did not include in Homebuilding’s equity in earnings (loss) from unconsolidated entities its pro-rata share of earnings related to the Company’s portion of the TRA Liability. As a result, the Company’s unconsolidated entities have net earnings, but the Company has an equity in loss from unconsolidated entities. Summarized condensed financial information on a combined 100% basis related to Multifamily's investments in unconsolidated entities that are accounted for by the equity method was as follows: Balance Sheets (Dollars in thousands) May 31, November 30, 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 (1) Notes payable are net of debt issuance costs of $21.0 million and $15.7 million , as of May 31, 2019 and November 30, 2018 , respectively. Statements of Operations 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 (1) 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. |
Lennar Other (Tables)
Lennar Other (Tables) | 6 Months Ended |
May 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Assets and Liabilities | Financial information relating to the Company’s operations was as follows: (In thousands) May 31, November 30, 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, November 30, 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, November 30, 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. (In thousands) May 31, November 30, 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 |
Cash and Cash Equivalents and_2
Cash and Cash Equivalents and Restricted Cash (Tables) | 6 Months Ended |
May 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of cash and cash equivalents and restricted cash | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the condensed consolidated statements of cash flows to the respective condensed consolidated balance sheets: May 31, (In thousands) 2019 2018 Homebuilding: Cash and cash equivalents $ 800,678 931,753 Restricted cash 11,687 17,509 Financial Services: Cash and cash equivalents 171,892 162,992 Restricted cash 14,868 12,892 Multifamily: Cash and cash equivalents 5,203 15,380 Lennar Other: Cash and cash equivalents 15,768 43,729 Restricted cash 975 12,096 Total cash and cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows $ 1,021,071 1,196,351 |
Homebuilding Senior Notes and_2
Homebuilding Senior Notes and Other Debts Payable (Tables) | 6 Months Ended |
May 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Senior Notes and Other Debts Payable | (Dollars in thousands) May 31, November 30, Unsecured revolving credit facility $ 550,000 — 4.500% senior notes due 2019 499,981 499,585 4.50% senior notes due 2019 599,602 599,176 6.625% senior notes due 2020 (1) 307,701 311,735 2.95% senior notes due 2020 299,129 298,838 8.375% senior notes due 2021 (1) 427,378 435,897 4.750% senior notes due 2021 498,502 498,111 6.25% senior notes due December 2021 (1) 312,768 315,283 4.125% senior notes due 2022 597,390 596,894 5.375% senior notes due 2022 (1) 259,627 261,055 4.750% senior notes due 2022 571,104 570,564 4.875% senior notes due December 2023 396,156 395,759 4.500% senior notes due 2024 646,440 646,078 5.875% senior notes due 2024 (1) 450,496 452,833 4.750% senior notes due 2025 497,336 497,114 5.25% senior notes due 2026 (1) 408,527 409,133 5.00% senior notes due 2027 (1) 353,083 353,275 4.75% senior notes due 2027 892,672 892,297 0.25% convertible senior notes due 2019 — 1,291 Mortgage notes on land and other debt 823,049 508,950 $ 9,390,941 8,543,868 (1) These notes were obligations of CalAtlantic when it was acquired, and were subsequently exchanged in part for notes of Lennar Corporation as follows: $267.7 million principal amount of 6.625% senior notes due 2020 , $397.6 million principal amount of 8.375% senior notes due 2021 , $292.0 million principal amount of 6.25% senior notes due 2021 , $240.8 million principal amount of 5.375% senior notes due 2022 , $421.4 million principal amount of 5.875% senior notes due 2024 , $395.5 million principal amount of 5.25% senior notes due 2026 and $347.3 million principal amount of 5.00% senior notes due 2027 . As part of purchase accounting, the senior notes have been recorded at their fair value as of the date of acquisition (February 12, 2018). |
Product Warranty (Tables)
Product Warranty (Tables) | 6 Months Ended |
May 31, 2019 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Reserve | The activity in the Company’s warranty reserve was as follows: Three Months Ended Six Months Ended May 31, May 31, (In thousands) 2019 2018 2019 2018 Warranty reserve, beginning of the period $ 295,622 270,056 319,109 164,619 Warranties issued 47,855 47,855 81,826 72,544 Adjustments to pre-existing warranties from changes in estimates (1) 2,004 7,227 (7,523 ) 10,095 Warranties assumed related to acquisitions — 9,150 — 117,554 Payments (53,857 ) (39,578 ) (101,788 ) (70,102 ) Warranty reserve, end of period $ 291,624 294,710 291,624 294,710 (1) The adjustments to pre-existing warranties from changes in estimates are primarily related to specific claims for certain of the Company's homebuilding communities and other adjustments. |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Disclosures (Tables) | 6 Months Ended |
May 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts And Estimated Fair Value Of Financial Instruments | The following table presents the carrying amounts and estimated fair values of financial instruments held by the Company at May 31, 2019 and November 30, 2018 , using available market information and what the Company believes to be appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies might have a material effect on the estimated fair value amounts. The table excludes cash and cash equivalents, restricted cash, receivables, net and accounts payable, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments. May 31, 2019 November 30, 2018 (In thousands) Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value ASSETS Financial Services: Loans held-for-investment, net Level 3 $ 76,248 71,872 70,216 63,794 Investments held-to-maturity Level 3 $ 167,014 194,796 136,982 149,767 Investments held-to-maturity Level 2 $ 32,398 32,366 52,490 52,220 Lennar Other: Investments held-to-maturity Level 3 $ 60,449 64,364 59,974 72,986 LIABILITIES Homebuilding senior notes and other debts payable Level 2 $ 9,390,941 9,560,305 8,543,868 8,336,166 Financial Services notes and other debts payable Level 2 $ 1,214,017 1,215,548 1,558,702 1,559,718 Multifamily notes payable Level 2 $ 39,662 39,662 — — Lennar Other notes and other debts payable Level 2 $ 15,178 15,178 14,488 14,488 |
Fair Value Measured On Recurring Basis | The Company’s financial instruments measured at fair value on a recurring basis are summarized below: (In thousands) Fair Value Hierarchy Fair Value at Fair Value at Financial Services Assets (Liabilities): RMF loans held-for-sale (1) Level 3 $ 259,599 61,691 Financial Services residential loans held-for-sale (2) Level 2 $ 1,160,676 1,152,198 Investments available-for-sale Level 1 $ 3,356 4,161 Mortgage loan commitments Level 2 $ 25,225 16,373 Forward contracts Level 2 $ (11,273 ) (10,360 ) Mortgage servicing rights Level 3 $ 29,419 37,206 (1) The aggregate fair value of RMF loans held-for-sale of $259.6 million at May 31, 2019 exceeded their aggregate principal balance of $255.7 million by $3.9 million . The aggregate fair value of RMF loans held-for-sale of $61.7 million at November 30, 2018 exceeded their aggregate principal balance of $61.0 million by $0.7 million . (2) The aggregate fair value of Financial Services residential loans held-for-sale of $1.2 billion at May 31, 2019 exceeded their aggregate principal balance of $1.1 billion by $40.2 million . The aggregate fair value of Financial Services residential loans held-for-sale of $1.2 billion at November 30, 2018 exceeded their aggregate principal balance of $1.1 billion by $37.3 million . |
Schedule Of Gains And Losses Of Financial Instruments Measured on a Recurring Basis | The changes in fair values for Level 1 and Level 2 financial instruments measured on a recurring basis are shown below by financial instrument and financial statement line item: Three Months Ended Six Months Ended May 31, May 31, (In thousands) 2019 2018 2019 2018 Changes in fair value included in Financial Services revenues: Loans held-for-sale $ 13,007 16,586 2,887 289 Mortgage loan commitments 9,111 13,438 8,852 15,219 Forward contracts (9,766 ) (11,039 ) (913 ) (7,876 ) Investments available-for-sale 176 126 176 126 Changes in fair value included in other comprehensive income (loss), net of tax: Financial Services investments available-for-sale 561 (589 ) 769 (1,247 ) |
Reconciliation Of Beginning And Ending Balance For The Company's Level 3 Recurring Fair Value Measurements | The following table represents the reconciliation of the beginning and ending balance for the Level 3 recurring fair value measurements: Three Months Ended May 31, 2019 2018 Financial Services (In thousands) Mortgage servicing rights RMF loans held-for-sale Mortgage servicing rights RMF loans held-for-sale Beginning balance $ 35,448 131,042 36,772 123,398 Purchases/loan originations 672 435,189 1,857 425,870 Sales/loan originations sold, including those not settled — (299,962 ) — (228,141 ) Disposals/settlements (1,378 ) (9,920 ) (3,326 ) — Changes in fair value (1) (5,323 ) 3,022 (711 ) 2,618 Interest and principal paydowns — 228 — 1,628 Ending balance $ 29,419 259,599 34,592 325,373 Six Months Ended May 31, 2019 2018 Financial Services (In thousands) Mortgage servicing rights RMF loans held-for-sale Mortgage servicing rights RMF loans held-for-sale Beginning balance $ 37,206 61,691 31,163 234,403 Purchases/loan originations 2,259 705,311 4,145 663,835 Sales/loan originations sold, including those not settled — (500,549 ) — (575,853 ) Disposals/settlements (2,287 ) (9,920 ) (4,539 ) — Changes in fair value (1) (7,759 ) 3,324 3,823 3,370 Interest and principal paydowns — (258 ) — (382 ) Ending balance $ 29,419 259,599 34,592 325,373 (1) Changes in fair value for RMF loans held-for-sale and Financial Services mortgage servicing rights are included in RMF's and Financial Services' revenues, respectively. |
Fair Value Measurements, Nonrecurring | The assets measured at fair value on a nonrecurring basis are summarized below: Three Months Ended May 31, 2019 2018 (In thousands) Fair Value Hierarchy Carrying Value Fair Value Total Losses, Net (1) Carrying Value Fair Value Total Losses, Net (1) Non-financial assets Homebuilding: Land and land under development (1) Level 3 $ — — — 13,858 3,122 (10,736 ) Six Months Ended May 31, 2019 2018 (In thousands) Fair Value Hierarchy Carrying Value Fair Value Total Losses, Net (1) Carrying Value Fair Value Total Losses, Net (1) Non-financial assets Homebuilding: Land and land under development (1) Level 3 $ 6,954 3,001 (3,953 ) 66,787 46,687 (20,100 ) (1) |
Schedule of Unobservable Inputs Used in Discounted Cash Flow Model to Determine the Fair Value of Communities | The table below summarizes the most significant unobservable inputs used in the Company's discounted cash flow model to determine the fair value of its communities for which the Company recorded valuation adjustments during the six months ended May 31, 2018 : Six Months Ended May 31, 2018 Unobservable inputs Range Average selling price $233,000 - $572,000 Absorption rate per quarter (homes) 5 - 16 Discount rate 20% |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
May 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Estimated Maximum Exposure To Loss | At May 31, 2019 and November 30, 2018 , the Company’s recorded investments in VIEs that are unconsolidated and its estimated maximum exposure to loss were as follows: May 31, 2019 November 30, 2018 (In thousands) Investments in Unconsolidated VIEs Lennar’s Maximum Exposure to Loss Investments in Lennar’s Maximum Homebuilding (1) $ 103,818 104,117 123,064 184,945 Multifamily (2) 495,513 810,723 463,534 710,754 Financial Services (3) 167,014 167,014 136,982 136,982 Lennar Other (4) 65,374 65,374 63,919 63,919 $ 831,719 1,147,228 787,499 1,096,600 (1) As of May 31, 2019 , the maximum exposure to loss of Homebuilding’s investments in unconsolidated VIEs was limited primarily to its investments in the unconsolidated VIEs. As of November 30, 2018 , the maximum exposure to loss of Homebuilding’s investments in unconsolidated VIEs was limited to its investments in the unconsolidated VIEs, except with regard to repayment guarantees of one unconsolidated entity's debt of $54.8 million . (2) As of May 31, 2019 and November 30, 2018 , the maximum exposure to loss of Multifamily's investments in unconsolidated VIEs was limited to its investments in the unconsolidated VIEs, except with regard to the remaining equity commitment of $309.2 million and $237.0 million , respectively, to fund LMV I and LMV II for future expenditures related to the construction and development of its projects and $1.2 million and $4.6 million , respectively, of letters of credit outstanding for certain of the unconsolidated VIEs that could be drawn upon in the event of default under their debt agreements. (3) At both May 31, 2019 and November 30, 2018 , the maximum recourse exposure to loss of the Financial Services segment was limited to its investments in the unconsolidated VIEs, which included $167.0 million and $137.0 million , respectively, related to the Financial Services' CMBS investments held-to-maturity. (4) At both May 31, 2019 and November 30, 2018 , the maximum recourse exposure to loss of the Lennar Other segment was limited to its investments in the unconsolidated VIEs, which included $60.4 million and $60.0 million , respectively, related to the Lennar Other segment's CMBS investments held-to-maturity. |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 6 Months Ended |
May 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet May 31, 2019 (In thousands) Lennar Guarantor Non-Guarantor 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 | Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Three Months Ended May 31, 2019 (In thousands) Lennar Guarantor Non-Guarantor 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 Guarantor Non-Guarantor 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 Guarantor Non-Guarantor 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 Guarantor Non-Guarantor 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 | 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 |
Business Acquisition (Narrative
Business Acquisition (Narrative) (Details) $ in Thousands | Feb. 12, 2018USD ($)metropolitan_areastate | May 31, 2019USD ($) | May 31, 2018USD ($) | May 31, 2019USD ($) | May 31, 2018USD ($) | Nov. 30, 2018USD ($) | |
Business Acquisition [Line Items] | |||||||
Transaction costs | $ 0 | $ 23,875 | $ 0 | $ 128,070 | |||
Financial Services | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 215,516 | 215,516 | $ 237,688 | ||||
Homebuilding | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | [1] | $ 3,442,359 | $ 3,442,359 | $ 3,442,359 | |||
Homebuilding | 4.125% senior notes due 2022 | |||||||
Business Acquisition [Line Items] | |||||||
Interest rate | 4.125% | 4.125% | |||||
Senior Notes | Homebuilding | 4.125% senior notes due 2022 | |||||||
Business Acquisition [Line Items] | |||||||
Interest rate | 4.125% | 4.125% | |||||
CalAtlantic Group, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Number of metropolitan areas | metropolitan_area | 43 | ||||||
Number of states | state | 19 | ||||||
Consideration attributable to cash including fractional shares | $ 1,162,341 | ||||||
Revenue since acquisition | 2,100,000 | 2,500,000 | |||||
Pre-tax earnings since acquisition | 56,500 | (52,000) | |||||
Transaction costs | $ 23,900 | $ 128,100 | |||||
Goodwill | 3,300,000 | ||||||
CalAtlantic Group, Inc. | Homebuilding Texas | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 342,200 | ||||||
CalAtlantic Group, Inc. | Homebuilding West | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 1,400,000 | ||||||
CalAtlantic Group, Inc. | Financial Services | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 175,400 | ||||||
CalAtlantic Group, Inc. | Homebuilding | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 3,305,792 | ||||||
CalAtlantic Group, Inc. | Homebuilding East | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 1,100,000 | ||||||
[1] | Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities ("VIEs") and liabilities of consolidated VIEs as to which neither Lennar Corporation, or any of its subsidiaries, has any obligations. As of May 31, 2019 , total assets include $1.4 billion related to consolidated VIEs of which $52.9 million is included in Homebuilding cash and cash equivalents, $103.3 million in Homebuilding receivables, net, $240.1 million in Homebuilding finished homes and construction in progress, $301.0 million in Homebuilding land and land under development, $394.7 million in Homebuilding consolidated inventory not owned, $4.1 million in Homebuilding investments in unconsolidated entities, $10.4 million in Homebuilding other assets, $187.2 million in Financial Services assets, $50.8 million in Multifamily assets and $7.2 million in Lennar Other assets. As of November 30, 2018 , total assets include $666.2 million related to consolidated VIEs of which $57.6 million is included in Homebuilding cash and cash equivalents, $0.2 million in Homebuilding receivables, net, $81.7 million in Homebuilding finished homes and construction in progress, $293.1 million in Homebuilding land and land under development, $209.0 million in Homebuilding consolidated inventory not owned, $3.8 million in Homebuilding investments in unconsolidated entities, $10.5 million in Homebuilding other assets and $10.3 million in Lennar Other assets. |
Business Acquisition (Purchase
Business Acquisition (Purchase Price) (Details) $ in Thousands | Feb. 12, 2018USD ($)shares |
CalAtlantic Group, Inc. | |
Business Acquisition [Line Items] | |
Goodwill | $ 3,300,000 |
CalAtlantic shares assumed to elect cash conversion (in shares) | shares | 24,083,091 |
CalAtlantic shares assumed to exchange (in shares) | shares | 93,942,788 |
Consideration attributable to cash including fractional shares | $ 1,162,341 |
Total purchase price | $ 6,232,347 |
CalAtlantic Group, Inc. | Class A Common Stock | |
Business Acquisition [Line Items] | |
Exchange ratio for Class A common stock | 0.885 |
Number of shares of common stock to be issued in exchange (in shares) | shares | 83,138,277 |
Consideration attributable to common stock and equity awards (in shares) | $ 4,933,425 |
CalAtlantic Group, Inc. | Class B Common Stock | |
Business Acquisition [Line Items] | |
Exchange ratio for Class A common stock | 0.0177 |
Number of shares of common stock to be issued in exchange (in shares) | shares | 1,662,172 |
Consideration attributable to common stock and equity awards (in shares) | $ 77,823 |
CalAtlantic Group, Inc. | |
Business Acquisition [Line Items] | |
Common stock outstanding (in shares) | shares | 118,025,879 |
Equity Awards Convertible Upon Change in Control | CalAtlantic Group, Inc. | |
Business Acquisition [Line Items] | |
Consideration attributable to common stock and equity awards (in shares) | $ 58,758 |
Homebuilding Central | CalAtlantic Group, Inc. | |
Business Acquisition [Line Items] | |
Goodwill | $ 495,000 |
Business Acquisition (Schedule
Business Acquisition (Schedule of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Feb. 12, 2018 | May 31, 2019 | Nov. 30, 2018 | |
Homebuilding | ||||
Inventories: | ||||
Goodwill | [1] | $ 3,442,359 | $ 3,442,359 | |
Financial Services | ||||
Inventories: | ||||
Goodwill | $ 215,516 | $ 237,688 | ||
CalAtlantic Group, Inc. | ||||
Inventories: | ||||
Goodwill | $ 3,300,000 | |||
Total assets | 10,676,309 | |||
LIABILITIES | ||||
Total liabilities | 4,425,532 | |||
Noncontrolling interests | 18,430 | |||
Total purchase price | 6,232,347 | |||
CalAtlantic Group, Inc. | Homebuilding | ||||
ASSETS | ||||
Cash and cash equivalents, restricted cash and receivables, net | 55,191 | |||
Inventories: | ||||
Inventories | 6,239,147 | |||
Intangible assets | 8,000 | |||
Investments in unconsolidated entities | 151,900 | |||
Goodwill | 3,305,792 | |||
Other assets | 561,151 | |||
Total assets | 10,321,181 | |||
LIABILITIES | ||||
Accounts payable | 306 | |||
Senior notes and other debts payable | 3,926,152 | |||
Other liabilities | 374,656 | |||
Total liabilities | 4,301,114 | |||
CalAtlantic Group, Inc. | Financial Services | ||||
Inventories: | ||||
Goodwill | 175,400 | |||
Total assets | 355,128 | |||
LIABILITIES | ||||
Total liabilities | 124,418 | |||
CalAtlantic Group, Inc. | Homebuilding East | ||||
Inventories: | ||||
Goodwill | $ 1,100,000 | |||
CalAtlantic Group, Inc. | Trade Name | Homebuilding | ||||
LIABILITIES | ||||
Amortization period | 6 months | |||
[1] | Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities ("VIEs") and liabilities of consolidated VIEs as to which neither Lennar Corporation, or any of its subsidiaries, has any obligations. As of May 31, 2019 , total assets include $1.4 billion related to consolidated VIEs of which $52.9 million is included in Homebuilding cash and cash equivalents, $103.3 million in Homebuilding receivables, net, $240.1 million in Homebuilding finished homes and construction in progress, $301.0 million in Homebuilding land and land under development, $394.7 million in Homebuilding consolidated inventory not owned, $4.1 million in Homebuilding investments in unconsolidated entities, $10.4 million in Homebuilding other assets, $187.2 million in Financial Services assets, $50.8 million in Multifamily assets and $7.2 million in Lennar Other assets. As of November 30, 2018 , total assets include $666.2 million related to consolidated VIEs of which $57.6 million is included in Homebuilding cash and cash equivalents, $0.2 million in Homebuilding receivables, net, $81.7 million in Homebuilding finished homes and construction in progress, $293.1 million in Homebuilding land and land under development, $209.0 million in Homebuilding consolidated inventory not owned, $3.8 million in Homebuilding investments in unconsolidated entities, $10.5 million in Homebuilding other assets and $10.3 million in Lennar Other assets. |
Operating and Reporting Segme_3
Operating and Reporting Segments (Disclosure Of Financial Information Relating To Company's Operations) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
May 31, 2019USD ($)$ / homes | May 31, 2018USD ($)$ / homes | May 31, 2019USD ($)$ / homes | May 31, 2018USD ($)$ / homes | Nov. 30, 2018USD ($) | Feb. 12, 2018USD ($) | ||
Segment Reporting Information [Line Items] | |||||||
Assets | [1] | $ 29,583,064 | $ 29,583,064 | $ 28,566,181 | |||
Revenues | 5,562,890 | $ 5,459,061 | 9,430,972 | $ 8,439,852 | |||
Operating earnings (loss): | |||||||
Operating earnings | 559,399 | 390,810 | 878,523 | 660,238 | |||
Sales incentives | $ 338,100 | $ 278,100 | $ 560,400 | $ 428,000 | |||
Sales incentives per home delivered (in dollars per home) | $ / homes | 26,600 | 23,000 | 26,100 | 22,800 | |||
Loss on consolidation of previously unconsolidated entity | $ 48,874 | $ 0 | |||||
Gain on sale of strategic joint venture | 10,865 | 164,880 | |||||
Acquisition and integration costs related to CalAtlantic | $ 0 | $ 23,875 | 0 | 128,070 | |||
CalAtlantic Group, Inc. | |||||||
Segment Reporting Information [Line Items] | |||||||
Goodwill | $ 3,300,000 | ||||||
Operating earnings (loss): | |||||||
Acquisition and integration costs related to CalAtlantic | 23,900 | 128,100 | |||||
Homebuilding East | CalAtlantic Group, Inc. | |||||||
Segment Reporting Information [Line Items] | |||||||
Goodwill | 1,100,000 | ||||||
Homebuilding Central | CalAtlantic Group, Inc. | |||||||
Segment Reporting Information [Line Items] | |||||||
Goodwill | 495,000 | ||||||
Homebuilding Texas | CalAtlantic Group, Inc. | |||||||
Segment Reporting Information [Line Items] | |||||||
Goodwill | 342,200 | ||||||
Homebuilding West | CalAtlantic Group, Inc. | |||||||
Segment Reporting Information [Line Items] | |||||||
Goodwill | 1,400,000 | ||||||
Homebuilding | |||||||
Segment Reporting Information [Line Items] | |||||||
Assets | [1] | 25,519,455 | 25,519,455 | 24,324,093 | |||
Goodwill | [1] | 3,442,359 | 3,442,359 | 3,442,359 | |||
Revenues | 5,195,599 | 5,063,997 | 8,819,320 | 7,726,090 | |||
Operating earnings (loss): | |||||||
Operating earnings | 581,789 | $ 425,143 | 951,384 | 839,070 | |||
Homebuilding | Treasure Island Holdings | |||||||
Operating earnings (loss): | |||||||
Gain on sale of strategic joint venture | $ 164,900 | ||||||
Ownership interest in strategic joint venture | 80.00% | 80.00% | |||||
Homebuilding | CalAtlantic Group, Inc. | |||||||
Segment Reporting Information [Line Items] | |||||||
Goodwill | 3,305,792 | ||||||
Financial Services | |||||||
Segment Reporting Information [Line Items] | |||||||
Assets | [1] | 2,468,263 | 2,468,263 | 2,778,910 | |||
Goodwill | 215,516 | 215,516 | 237,688 | ||||
Revenues | 204,216 | $ 249,710 | 347,527 | $ 445,797 | |||
Financial Services | CalAtlantic Group, Inc. | |||||||
Segment Reporting Information [Line Items] | |||||||
Goodwill | $ 175,400 | ||||||
Multifamily | |||||||
Segment Reporting Information [Line Items] | |||||||
Assets | [1] | 1,046,196 | 1,046,196 | 874,219 | |||
Revenues | 147,412 | 117,693 | 244,806 | 210,949 | |||
Lennar Other | |||||||
Segment Reporting Information [Line Items] | |||||||
Assets | [1] | 549,150 | 549,150 | 588,959 | |||
Revenues | 15,663 | 27,661 | 19,319 | 57,016 | |||
Operating Segments | |||||||
Operating earnings (loss): | |||||||
Operating earnings | (76,113) | (108,790) | (155,456) | (280,795) | |||
Operating Segments | Homebuilding East | |||||||
Segment Reporting Information [Line Items] | |||||||
Assets | 6,987,845 | 6,987,845 | 7,183,758 | ||||
Revenues | 1,737,342 | 1,566,743 | 2,964,155 | 2,479,706 | |||
Operating earnings (loss): | |||||||
Operating earnings | 210,464 | 153,893 | 345,847 | 255,222 | |||
Operating Segments | Homebuilding Central | |||||||
Segment Reporting Information [Line Items] | |||||||
Assets | 2,782,430 | 2,782,430 | 2,522,799 | ||||
Revenues | 613,785 | 636,523 | 1,048,852 | 891,092 | |||
Operating earnings (loss): | |||||||
Operating earnings | 55,344 | 25,138 | 86,270 | 34,174 | |||
Operating Segments | Homebuilding Texas | |||||||
Segment Reporting Information [Line Items] | |||||||
Assets | 2,449,590 | 2,449,590 | 2,311,760 | ||||
Revenues | 693,212 | 700,767 | 1,111,729 | 1,056,865 | |||
Operating earnings (loss): | |||||||
Operating earnings | 75,374 | 37,652 | 107,652 | 51,665 | |||
Operating Segments | Homebuilding West | |||||||
Segment Reporting Information [Line Items] | |||||||
Assets | 10,954,282 | 10,954,282 | 10,291,385 | ||||
Revenues | 2,143,023 | 2,144,613 | 3,683,920 | 3,272,569 | |||
Operating earnings (loss): | |||||||
Operating earnings | 272,904 | 224,595 | 463,565 | 364,024 | |||
Operating Segments | Homebuilding Other | |||||||
Segment Reporting Information [Line Items] | |||||||
Assets | 1,238,115 | 1,238,115 | 1,013,367 | ||||
Revenues | 8,237 | 15,351 | 10,664 | 25,858 | |||
Operating earnings (loss): | |||||||
Operating earnings | (32,297) | (16,135) | (51,950) | 133,985 | |||
Loss on consolidation of previously unconsolidated entity | 48,900 | 48,900 | |||||
Operating Segments | Homebuilding | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 5,195,599 | 5,063,997 | 8,819,320 | 7,726,090 | |||
Operating earnings (loss): | |||||||
Purchase accounting adjustments | 236,800 | 291,900 | |||||
Loss on consolidation of previously unconsolidated entity | 48,900 | ||||||
Operating Segments | Financial Services | |||||||
Segment Reporting Information [Line Items] | |||||||
Assets | 2,468,263 | 2,468,263 | 2,778,910 | ||||
Revenues | 204,216 | 249,709 | 347,527 | 445,796 | |||
Operating earnings (loss): | |||||||
Operating earnings | 56,217 | 55,774 | 75,189 | 81,636 | |||
Operating Segments | Multifamily | |||||||
Segment Reporting Information [Line Items] | |||||||
Assets | 1,046,196 | 1,046,196 | 874,219 | ||||
Revenues | 147,412 | 117,693 | 244,806 | 210,949 | |||
Operating earnings (loss): | |||||||
Operating earnings | (4,322) | 14,788 | 2,475 | 13,587 | |||
Operating Segments | Lennar Other | |||||||
Segment Reporting Information [Line Items] | |||||||
Assets | 549,150 | 549,150 | 588,959 | ||||
Revenues | 15,663 | 27,662 | 19,319 | 57,017 | |||
Operating earnings (loss): | |||||||
Operating earnings | 1,828 | $ 3,895 | 4,931 | $ 6,740 | |||
Corporate and unallocated | |||||||
Segment Reporting Information [Line Items] | |||||||
Assets | $ 1,107,193 | $ 1,107,193 | $ 1,001,024 | ||||
[1] | Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities ("VIEs") and liabilities of consolidated VIEs as to which neither Lennar Corporation, or any of its subsidiaries, has any obligations. As of May 31, 2019 , total assets include $1.4 billion related to consolidated VIEs of which $52.9 million is included in Homebuilding cash and cash equivalents, $103.3 million in Homebuilding receivables, net, $240.1 million in Homebuilding finished homes and construction in progress, $301.0 million in Homebuilding land and land under development, $394.7 million in Homebuilding consolidated inventory not owned, $4.1 million in Homebuilding investments in unconsolidated entities, $10.4 million in Homebuilding other assets, $187.2 million in Financial Services assets, $50.8 million in Multifamily assets and $7.2 million in Lennar Other assets. As of November 30, 2018 , total assets include $666.2 million related to consolidated VIEs of which $57.6 million is included in Homebuilding cash and cash equivalents, $0.2 million in Homebuilding receivables, net, $81.7 million in Homebuilding finished homes and construction in progress, $293.1 million in Homebuilding land and land under development, $209.0 million in Homebuilding consolidated inventory not owned, $3.8 million in Homebuilding investments in unconsolidated entities, $10.5 million in Homebuilding other assets and $10.3 million in Lennar Other assets. |
Homebuilding Investments in U_3
Homebuilding Investments in Unconsolidated Entities (Statements Of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity in earnings (loss) from unconsolidated entities | $ (5,908) | $ (3,740) | ||
Contingent consideration received by unconsolidated entity | 64,900 | |||
Company's share of contingent consideration received by unconsolidated entity | 25,900 | |||
Homebuilding | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | $ 65,686 | $ 100,952 | 156,330 | 169,141 |
Costs and expenses | 90,363 | 148,678 | 214,114 | 256,102 |
Other income (1) | 75,868 | 105,192 | 76,065 | 105,192 |
Net earnings of unconsolidated entities | 51,191 | 57,466 | 18,281 | 18,231 |
Equity in earnings (loss) from unconsolidated entities | $ 19,614 | $ (12,670) | $ 5,858 | $ (26,798) |
FivePoint Unconsolidated Entity | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Company's interest in TRA liability | 70.00% | 70.00% |
Homebuilding Investments in U_4
Homebuilding Investments in Unconsolidated Entities (Narrative) (Details) $ in Thousands | 6 Months Ended | ||||
May 31, 2019USD ($)investment | May 31, 2018USD ($) | Feb. 28, 2019 | Nov. 30, 2018USD ($) | ||
Schedule of Equity Method Investments [Line Items] | |||||
Gain on sale of strategic joint venture | $ 10,865 | $ 164,880 | |||
FivePoint Unconsolidated Entity | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Unconsolidated entities ownership percentage | 40.00% | ||||
Investments in unconsolidated entities | 389,100 | $ 342,700 | |||
Homebuilding | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments in unconsolidated entities | [1] | 983,683 | 870,201 | ||
Underlying equity in unconsolidated partners' net assets | $ 1,300,000 | $ 1,200,000 | |||
Homebuilding | Joint Ventures Previously Managed by FivePoint Communities | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of investments in joint ventures contributed | investment | 3 | ||||
Homebuilding | Treasure Island Holdings | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Unconsolidated entities ownership percentage | 80.00% | ||||
Gain on sale of strategic joint venture | $ 164,900 | ||||
[1] | Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities ("VIEs") and liabilities of consolidated VIEs as to which neither Lennar Corporation, or any of its subsidiaries, has any obligations. As of May 31, 2019 , total assets include $1.4 billion related to consolidated VIEs of which $52.9 million is included in Homebuilding cash and cash equivalents, $103.3 million in Homebuilding receivables, net, $240.1 million in Homebuilding finished homes and construction in progress, $301.0 million in Homebuilding land and land under development, $394.7 million in Homebuilding consolidated inventory not owned, $4.1 million in Homebuilding investments in unconsolidated entities, $10.4 million in Homebuilding other assets, $187.2 million in Financial Services assets, $50.8 million in Multifamily assets and $7.2 million in Lennar Other assets. As of November 30, 2018 , total assets include $666.2 million related to consolidated VIEs of which $57.6 million is included in Homebuilding cash and cash equivalents, $0.2 million in Homebuilding receivables, net, $81.7 million in Homebuilding finished homes and construction in progress, $293.1 million in Homebuilding land and land under development, $209.0 million in Homebuilding consolidated inventory not owned, $3.8 million in Homebuilding investments in unconsolidated entities, $10.5 million in Homebuilding other assets and $10.3 million in Lennar Other assets. |
Homebuilding Investments in U_5
Homebuilding Investments in Unconsolidated Entities (Balance Sheets) (Details) - Homebuilding - USD ($) $ in Thousands | May 31, 2019 | Nov. 30, 2018 | |
Assets: | |||
Cash and cash equivalents | $ 651,681 | $ 781,833 | |
Inventories | 4,177,728 | 4,291,470 | |
Other assets | 988,714 | 1,045,274 | |
Total assets | 5,818,123 | 6,118,577 | |
Liabilities and equity: | |||
Accounts payable and other liabilities | 757,410 | 874,355 | |
Debt | 825,275 | 1,202,556 | |
Equity | 4,235,438 | 4,041,666 | |
Total liabilities and equity | 5,818,123 | 6,118,577 | |
Investment | [1] | 983,683 | 870,201 |
Debt issue costs | $ 9,868 | 12,403 | |
Investments recorded as negative investments for one unconsolidated entity | $ (62,000) | ||
[1] | Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities ("VIEs") and liabilities of consolidated VIEs as to which neither Lennar Corporation, or any of its subsidiaries, has any obligations. As of May 31, 2019 , total assets include $1.4 billion related to consolidated VIEs of which $52.9 million is included in Homebuilding cash and cash equivalents, $103.3 million in Homebuilding receivables, net, $240.1 million in Homebuilding finished homes and construction in progress, $301.0 million in Homebuilding land and land under development, $394.7 million in Homebuilding consolidated inventory not owned, $4.1 million in Homebuilding investments in unconsolidated entities, $10.4 million in Homebuilding other assets, $187.2 million in Financial Services assets, $50.8 million in Multifamily assets and $7.2 million in Lennar Other assets. As of November 30, 2018 , total assets include $666.2 million related to consolidated VIEs of which $57.6 million is included in Homebuilding cash and cash equivalents, $0.2 million in Homebuilding receivables, net, $81.7 million in Homebuilding finished homes and construction in progress, $293.1 million in Homebuilding land and land under development, $209.0 million in Homebuilding consolidated inventory not owned, $3.8 million in Homebuilding investments in unconsolidated entities, $10.5 million in Homebuilding other assets and $10.3 million in Lennar Other assets. |
Homebuilding Investments in U_6
Homebuilding Investments in Unconsolidated Entities (Total Debt Of Unconsolidated Entities) (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
May 31, 2019USD ($)joint_venture | Nov. 30, 2018USD ($)joint_venture | |
Schedule of Equity Method Investments [Line Items] | ||
Number of unconsolidated entities debt repayment guarantee | joint_venture | 2 | 4 |
Homebuilding | ||
Schedule of Equity Method Investments [Line Items] | ||
Non-recourse bank debt and other debt (partner’s share of several recourse) | $ 46,816 | $ 48,313 |
Non-recourse debt with completion guarantees | 144,588 | 239,568 |
Non-recourse debt without completion guarantees | 634,086 | 861,371 |
Non-recourse debt to the Company | 825,490 | 1,149,252 |
The Company’s maximum recourse exposure | 9,653 | 65,707 |
Debt issuance costs | (9,868) | (12,403) |
Total debt (1) | $ 825,275 | $ 1,202,556 |
The Company’s maximum recourse exposure as a % of total JV debt | 1.00% | 5.00% |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule Of Changes In Equity) (Details) - USD ($) | Jul. 25, 2019 | May 08, 2019 | May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | Aug. 31, 2018 | Nov. 30, 2018 | Jan. 31, 2019 | Dec. 01, 2018 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Balance, beginning | $ 14,682,957,000 | [1] | $ 7,986,132,000 | $ 7,986,132,000 | $ 7,986,132,000 | ||||||||
Net earnings (including net loss attributable to noncontrolling interests) | $ 418,869,000 | $ 314,849,000 | 658,293,000 | 451,666,000 | |||||||||
Employee stock and directors plans | (691,000) | (24,205,000) | |||||||||||
Purchases of treasury stock | (98,781,000) | ||||||||||||
Stock issuance in connection with CalAtlantic acquisition | 5,070,006,000 | ||||||||||||
Amortization of restricted stock | 31,390,000 | 33,720,000 | |||||||||||
Cash dividends | (25,877,000) | (22,780,000) | |||||||||||
Receipts related to noncontrolling interests | 8,937,000 | 3,882,000 | |||||||||||
Payments related to noncontrolling interests | (23,317,000) | (30,412,000) | |||||||||||
Non-cash distributions to noncontrolling interests | 15,080,000 | ||||||||||||
Non-cash consolidations, net | 8,894,000 | ||||||||||||
Cumulative-effect of accounting change (see Note 1 to the Notes to the Condensed Consolidated Financial Statements) | $ 9,753,000 | ||||||||||||
Non-cash activity related to noncontrolling interests | (5,616,000) | ||||||||||||
Total other comprehensive income, net of tax | 593,000 | (1,373,000) | |||||||||||
Balance, ending | $ 15,246,535,000 | [1] | 13,698,870,000 | $ 15,246,535,000 | [1] | 13,698,870,000 | 14,682,957,000 | [1] | |||||
Stock repurchase program, authorized value | $ 1,000,000,000 | ||||||||||||
Stock repurchase program, authorized shares | 25,000,000 | ||||||||||||
Shares repurchased during period | 1,000,000 | 2,000,000 | |||||||||||
Shares repurchased during period, value | $ 51,800,000 | $ 98,800,000 | |||||||||||
Average share price of shares repurchased (in dollars per share) | $ 51.76 | $ 49.37 | |||||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities, Net of Adjustments | 217,154,000 | ||||||||||||
Additional Paid - in Capital | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Balance, beginning | $ 8,496,677,000 | 3,142,013,000 | 3,142,013,000 | 3,142,013,000 | |||||||||
Employee stock and directors plans | 1,761,000 | 4,266,000 | |||||||||||
Stock issuance in connection with CalAtlantic acquisition | 5,061,430,000 | ||||||||||||
Amortization of restricted stock | 31,390,000 | 33,720,000 | |||||||||||
Non-cash activity related to noncontrolling interests | 0 | ||||||||||||
Balance, ending | $ 8,529,828,000 | 8,458,211,000 | 8,529,828,000 | 8,458,211,000 | 8,496,677,000 | ||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities, Net of Adjustments | 216,782,000 | ||||||||||||
Treasury Stock | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Balance, beginning | (435,869,000) | (136,020,000) | (136,020,000) | (136,020,000) | |||||||||
Employee stock and directors plans | (2,456,000) | (28,532,000) | |||||||||||
Purchases of treasury stock | (98,781,000) | ||||||||||||
Stock issuance in connection with CalAtlantic acquisition | 0 | ||||||||||||
Balance, ending | (537,106,000) | (164,552,000) | (537,106,000) | (164,552,000) | (435,869,000) | ||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Balance, beginning | (366,000) | 1,034,000 | 1,034,000 | 1,034,000 | |||||||||
Total other comprehensive income, net of tax | 593,000 | (1,373,000) | |||||||||||
Balance, ending | 227,000 | (339,000) | 227,000 | (339,000) | (366,000) | ||||||||
Retained Earnings | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Balance, beginning | 6,487,650,000 | 4,840,978,000 | 4,840,978,000 | 4,840,978,000 | |||||||||
Net earnings (including net loss attributable to noncontrolling interests) | 661,382,000 | 446,472,000 | |||||||||||
Employee stock and directors plans | 4,000 | ||||||||||||
Cash dividends | (25,877,000) | (22,780,000) | |||||||||||
Cumulative-effect of accounting change (see Note 1 to the Notes to the Condensed Consolidated Financial Statements) | $ 9,753,000 | ||||||||||||
Balance, ending | 7,132,908,000 | 5,264,674,000 | 7,132,908,000 | 5,264,674,000 | 6,487,650,000 | ||||||||
Noncontrolling Interests | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Balance, beginning | 101,422,000 | 113,815,000 | 113,815,000 | 113,815,000 | |||||||||
Net earnings (including net loss attributable to noncontrolling interests) | (3,089,000) | 5,194,000 | |||||||||||
Receipts related to noncontrolling interests | 8,937,000 | 3,882,000 | |||||||||||
Payments related to noncontrolling interests | (23,317,000) | (30,412,000) | |||||||||||
Non-cash distributions to noncontrolling interests | 15,080,000 | ||||||||||||
Non-cash consolidations, net | 8,894,000 | ||||||||||||
Non-cash activity related to noncontrolling interests | (5,616,000) | ||||||||||||
Balance, ending | 87,231,000 | 107,559,000 | 87,231,000 | 107,559,000 | $ 101,422,000 | ||||||||
Class A Common Stock | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Cash dividends (in dollars per share) | $ 0.04 | $ 0.04 | |||||||||||
Class A Common Stock | Common Stock | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Balance, beginning | 29,499,000 | 20,543,000 | 20,543,000 | $ 20,543,000 | |||||||||
Employee stock and directors plans | 4,000 | 57,000 | |||||||||||
Stock issuance in connection with CalAtlantic acquisition | 8,408,000 | ||||||||||||
Balance, ending | 29,503,000 | 29,373,000 | 29,503,000 | 29,373,000 | 29,499,000 | ||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities, Net of Adjustments | 365,000 | ||||||||||||
Class B Common Stock | Common Stock | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Balance, beginning | 3,944,000 | 3,769,000 | $ 3,769,000 | 3,769,000 | |||||||||
Stock issuance in connection with CalAtlantic acquisition | 168,000 | ||||||||||||
Balance, ending | $ 3,944,000 | $ 3,944,000 | $ 3,944,000 | 3,944,000 | $ 3,944,000 | ||||||||
Stock Issued During Period, Value, Conversion of Convertible Securities, Net of Adjustments | $ 7,000 | ||||||||||||
Subsequent Event | Class A Common Stock | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Cash dividends (in dollars per share) | $ 0.04 | ||||||||||||
[1] | Under certain provisions of ASC 810, the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated VIEs and liabilities of consolidated VIEs as to which neither Lennar Corporation, or any of its subsidiaries, has any obligations. As of May 31, 2019 , total liabilities include $928.9 million related to consolidated VIEs as to which there was no recourse against the Company, of which $17.3 million is included in Homebuilding accounts payable, $370.7 million in Homebuilding senior notes and other debts payable, $346.3 million in Homebuilding liabilities related to consolidated inventory not owned, $1.7 million in Homebuilding other liabilities, $190.6 million in Financial Services liabilities, $1.0 million in Multifamily liabilities and $1.3 million in Lennar Other liabilities. As of November 30, 2018 , total liabilities include $242.5 million related to consolidated VIEs as to which there was no recourse against the Company, of which $11.4 million is included in Homebuilding accounts payable, $51.9 million in Homebuilding senior notes and other debt payable, $175.6 million in Homebuilding liabilities related to consolidated inventory not owned, $2.6 million in Homebuilding other liabilities and $1.0 million in Lennar Other liabilities. |
Income Taxes (Income Tax Benefi
Income Taxes (Income Tax Benefit (Provision) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | ||
Income Tax Disclosure [Abstract] | |||||
Benefit (provision) for income taxes | [1] | $ 140,530 | $ 75,961 | $ 220,230 | $ 208,572 |
Effective tax rate | 25.00% | 19.70% | 25.00% | 31.80% | |
Write down of deferred tax asset resulting from Tax Cuts and Jobs Act | $ 68,600 | ||||
Excluding impact of write down of deferred tax assets, percent | 21.40% | ||||
[1] | Provision for income taxes for the six months ended May 31, 2018 includes a non-cash one-time write down of deferred tax assets of $68.6 million resulting from the Tax Cuts and Jobs Act enacted in December 2017. |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
May 31, 2019 | Nov. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets | $ 413.5 | $ 515.5 |
Unrecognized tax benefits | 14.7 | 14.7 |
Change in income tax penalties and interest expense | 1.3 | |
Income tax penalties and interest accrued | $ 54.2 | $ 52.9 |
Schedule of Basic and Diluted E
Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Numerator: | ||||
Net earnings attributable to Lennar | $ 421,472 | $ 310,257 | $ 661,382 | $ 446,472 |
Less: distributed earnings allocated to nonvested shares | 94 | 99 | 193 | 214 |
Less: undistributed earnings allocated to nonvested shares | 3,063 | 2,557 | 4,987 | 3,929 |
Numerator for basic earnings per share | 418,315 | 307,601 | 656,202 | 442,329 |
Less: net amount attributable to noncontrolling interests in Rialto's Carried Interest Incentive Plan | 3,331 | 240 | 3,654 | 449 |
Plus: interest on convertible senior notes | 0 | 54 | 0 | 80 |
Plus: undistributed earnings allocated to convertible shares | 0 | 12 | 0 | 15 |
Numerator for diluted earnings per share | $ 414,984 | $ 307,427 | $ 652,548 | $ 441,975 |
Denominator: | ||||
Denominator for basic earnings per share-weighted average common shares outstanding (shares) | 320,329 | 325,259 | 320,834 | 289,462 |
Effect of dilutive securities: | ||||
Share-based payments (shares) | 1 | 92 | 6 | 73 |
Convertible senior notes (shares) | 0 | 1,467 | 0 | 1,098 |
Denominator for diluted earnings per share-weighted average common shares outstanding (shares) | 320,330 | 326,818 | 320,840 | 290,633 |
Basic earnings per share (in dollars per share) | $ 1.31 | $ 0.95 | $ 2.05 | $ 1.53 |
Diluted earnings per share (in dollars per share) | $ 1.30 | $ 0.94 | $ 2.03 | $ 1.52 |
Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Options to purchase outstanding and anti-dilutive shares | 0 | 0 | 0 | 0 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Options to purchase outstanding and anti-dilutive shares | 0 | 0 | 0 | 0 |
Financial Services Segment (Sch
Financial Services Segment (Schedule Of Assets And Liabilities) (Details) - USD ($) $ in Thousands | May 31, 2019 | Nov. 30, 2018 | May 31, 2018 | Feb. 12, 2018 | |
Assets: | |||||
Total assets | [1] | $ 29,583,064 | $ 28,566,181 | ||
Liabilities: | |||||
Total liabilities | [2] | 14,336,529 | 13,883,224 | ||
CalAtlantic Group, Inc. | |||||
Assets: | |||||
Goodwill | $ 3,300,000 | ||||
Financial Services | |||||
Assets: | |||||
Cash and cash equivalents | 171,892 | 188,485 | $ 162,992 | ||
Restricted cash | 14,868 | 17,944 | 12,892 | ||
Receivables, net | 230,452 | 731,169 | |||
Lennar Financial Services loans held-for-sale | 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 | 3,356 | 4,161 | |||
Goodwill | 215,516 | 237,688 | |||
Other | 136,244 | 125,886 | |||
Total assets | [1] | 2,468,263 | 2,778,910 | ||
Liabilities: | |||||
Notes and other debts payable | 1,214,017 | 1,558,702 | |||
Other | 266,989 | 309,500 | |||
Total liabilities | [2] | 1,481,006 | 1,868,202 | ||
Self-insurance reserves | 61,000 | 60,300 | |||
Financial Services | Servicing Contracts | |||||
Liabilities: | |||||
Mortgage servicing rights | 29,400 | 37,200 | |||
Financial Services | Mortgage loan commitments | |||||
Liabilities: | |||||
Other asset | 25,200 | 16,400 | |||
Financial Services | Forward Contracts | |||||
Liabilities: | |||||
Other liability | (11,300) | (10,400) | |||
Financial Services | CalAtlantic Group, Inc. | |||||
Assets: | |||||
Goodwill | $ 175,400 | ||||
Lennar Other | |||||
Assets: | |||||
Cash and cash equivalents | 15,768 | 24,334 | 43,729 | ||
Restricted cash | 975 | 7,175 | $ 12,096 | ||
Investments held-to-maturity | 60,449 | 59,974 | |||
Other | 35,257 | 47,740 | |||
Total assets | [1] | 549,150 | 588,959 | ||
Liabilities: | |||||
Other | 14,861 | 53,020 | |||
Total liabilities | [2] | $ 30,039 | $ 67,508 | ||
[1] | Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities ("VIEs") and liabilities of consolidated VIEs as to which neither Lennar Corporation, or any of its subsidiaries, has any obligations. As of May 31, 2019 , total assets include $1.4 billion related to consolidated VIEs of which $52.9 million is included in Homebuilding cash and cash equivalents, $103.3 million in Homebuilding receivables, net, $240.1 million in Homebuilding finished homes and construction in progress, $301.0 million in Homebuilding land and land under development, $394.7 million in Homebuilding consolidated inventory not owned, $4.1 million in Homebuilding investments in unconsolidated entities, $10.4 million in Homebuilding other assets, $187.2 million in Financial Services assets, $50.8 million in Multifamily assets and $7.2 million in Lennar Other assets. As of November 30, 2018 , total assets include $666.2 million related to consolidated VIEs of which $57.6 million is included in Homebuilding cash and cash equivalents, $0.2 million in Homebuilding receivables, net, $81.7 million in Homebuilding finished homes and construction in progress, $293.1 million in Homebuilding land and land under development, $209.0 million in Homebuilding consolidated inventory not owned, $3.8 million in Homebuilding investments in unconsolidated entities, $10.5 million in Homebuilding other assets and $10.3 million in Lennar Other assets. | ||||
[2] | Under certain provisions of ASC 810, the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated VIEs and liabilities of consolidated VIEs as to which neither Lennar Corporation, or any of its subsidiaries, has any obligations. As of May 31, 2019 , total liabilities include $928.9 million related to consolidated VIEs as to which there was no recourse against the Company, of which $17.3 million is included in Homebuilding accounts payable, $370.7 million in Homebuilding senior notes and other debts payable, $346.3 million in Homebuilding liabilities related to consolidated inventory not owned, $1.7 million in Homebuilding other liabilities, $190.6 million in Financial Services liabilities, $1.0 million in Multifamily liabilities and $1.3 million in Lennar Other liabilities. As of November 30, 2018 , total liabilities include $242.5 million related to consolidated VIEs as to which there was no recourse against the Company, of which $11.4 million is included in Homebuilding accounts payable, $51.9 million in Homebuilding senior notes and other debt payable, $175.6 million in Homebuilding liabilities related to consolidated inventory not owned, $2.6 million in Homebuilding other liabilities and $1.0 million in Lennar Other liabilities. |
Financial Services Segment (S_2
Financial Services Segment (Schedule of Credit Facilities) (Details) | 6 Months Ended | |
May 31, 2019USD ($)extension | Jun. 30, 2019USD ($) | |
Financial Services | Warehouse Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum Aggregate Commitment | $ 1,800,000,000 | |
Financial Services | Warehouse Repurchase Facility | 364-day warehouse repurchase facility that matures June 2019 | ||
Line of Credit Facility [Line Items] | ||
Maximum Aggregate Commitment | $ 700,000,000 | |
Facility, term | 364 days | |
Financial Services | Warehouse Repurchase Facility | 364-day warehouse repurchase facility that matures July 2019 | ||
Line of Credit Facility [Line Items] | ||
Maximum Aggregate Commitment | $ 300,000,000 | |
Facility, term | 364 days | |
Uncommitted amount | $ 300,000,000 | |
Financial Services | Warehouse Repurchase Facility | 364-day warehouse repurchase facility that matures October 2019 | ||
Line of Credit Facility [Line Items] | ||
Maximum Aggregate Commitment | $ 500,000,000 | |
Facility, term | 364 days | |
Uncommitted amount | $ 400,000,000 | |
Financial Services | Warehouse Repurchase Facility | 364-day warehouse repurchase facility that matures March 2020 | ||
Line of Credit Facility [Line Items] | ||
Maximum Aggregate Commitment | $ 300,000,000 | |
Facility, term | 364 days | |
Financial Services | Warehouse Repurchase Facility | Warehouse repurchase facility that matures December 2019 (two - one year extensions) | ||
Line of Credit Facility [Line Items] | ||
Uncommitted amount | $ 300,000,000 | |
Lennar Other | 364-day warehouse repurchase facility that matures November 2019 | ||
Line of Credit Facility [Line Items] | ||
Facility, term | 364 days | |
Lennar Other | 364-day warehouse repurchase facility that matures December 2019 | ||
Line of Credit Facility [Line Items] | ||
Facility, term | 364 days | |
Lennar Other | 364-day warehouse repurchase facility that matures December 2019 | ||
Line of Credit Facility [Line Items] | ||
Facility, term | 364 days | |
Lennar Other | 364-day warehouse repurchase facility that matures December 2019 | ||
Line of Credit Facility [Line Items] | ||
Facility, term | 364 days | |
Lennar Other | Warehouse Repurchase Facility | 364-day warehouse repurchase facility that matures December 2019 | ||
Line of Credit Facility [Line Items] | ||
Maximum Aggregate Commitment | $ 200,000,000 | |
Lennar Other | Warehouse Repurchase Facility | 364-day warehouse repurchase facility that matures December 2019 | ||
Line of Credit Facility [Line Items] | ||
Maximum Aggregate Commitment | 200,000,000 | |
Warehouse Repurchase Facility | Lennar Other | ||
Line of Credit Facility [Line Items] | ||
Maximum Aggregate Commitment | 900,000,000 | |
Warehouse Repurchase Facility | Lennar Other | 364-day warehouse repurchase facility that matures November 2019 | ||
Line of Credit Facility [Line Items] | ||
Maximum Aggregate Commitment | 200,000,000 | |
Warehouse Repurchase Facility | Lennar Other | Warehouse repurchase facility that matures December 2019 (two - one year extensions) | ||
Line of Credit Facility [Line Items] | ||
Maximum Aggregate Commitment | $ 50,000,000 | |
Debt Instrument, Extension Term | 1 year | |
Debt Instrument, Number of Extensions | extension | 2 | |
Long-term Line of Credit | $ 0 | |
Rialto Mortgage Finance | Warehouse Repurchase Facility | Lennar Other | ||
Line of Credit Facility [Line Items] | ||
Maximum Aggregate Commitment | 850,000,000 | |
Rialto Mortgage Finance | Warehouse Repurchase Facility | Lennar Other | 364-day warehouse repurchase facility that matures December 2019 | ||
Line of Credit Facility [Line Items] | ||
Maximum Aggregate Commitment | $ 250,000,000 | |
Subsequent Event | Financial Services | Warehouse Repurchase Facility | 364-day warehouse repurchase facility that matures June 2020 | ||
Line of Credit Facility [Line Items] | ||
Maximum Aggregate Commitment | $ 500,000,000 |
Financial Services Segment (Nar
Financial Services Segment (Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||||
May 31, 2019USD ($) | May 31, 2018USD ($) | May 31, 2019USD ($)transaction | May 31, 2018USD ($)transaction | Nov. 30, 2018USD ($) | ||
Financial Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Notes and other debts payable | $ 1,214,017,000 | $ 1,214,017,000 | $ 1,558,702,000 | |||
Outstanding principal balance | 911,500,000 | 911,500,000 | 1,300,000,000 | |||
Investments held-to-maturity | 199,412,000 | 199,412,000 | 189,472,000 | |||
Lennar Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Originations of loans receivable | 720,600,000 | $ 663,800,000 | ||||
Origination of loans receivables, held-for-sale | 705,300,000 | |||||
Sale of loans held-for-sale | 500,500,000 | $ 556,300,000 | ||||
Unsettled securitized loans included as receivables | 61,000,000 | $ 61,000,000 | ||||
Number of securitization transactions | transaction | 5 | 6 | ||||
Unsettled transactions | $ 0 | $ 0 | ||||
Collateralized interest in originated commercial loans financed | 75.00% | 75.00% | ||||
Investments held-to-maturity | $ 60,449,000 | $ 60,449,000 | 59,974,000 | |||
Warehouse Repurchase Facility | Financial Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Notes and other debts payable | 882,000,000 | 882,000,000 | 1,300,000,000 | |||
Financing Agreement to Purchase Commercial Mortgage Backed Securities | Secured Debt | Lennar Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Senior notes and other debts payable | $ 155,400,000 | $ 155,400,000 | $ 123,700,000 | |||
Financing Agreement to Purchase Commercial Mortgage Backed Securities | Secured Debt | Minimum | Lennar Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest rate | 3.20% | 3.20% | 4.10% | |||
Warehouse Repurchase Facility | Lennar Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Borrowings under loan originations and securitizations activities | $ 155,900,000 | $ 155,900,000 | $ 178,800,000 | |||
CMBS | Financial Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Investments held-to-maturity | 167,000,000 | 167,000,000 | 137,000,000 | |||
CMBS | Lennar Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Senior notes and other debts payable | 13,300,000 | 13,300,000 | 12,600,000 | |||
Investments held-to-maturity | 60,400,000 | 60,400,000 | $ 60,000,000 | [1] | ||
Impairment charges for CMBS securities | $ 0 | $ 0 | $ 0 | $ 0 | ||
CMBS | Minimum | Financial Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Discount rate as a percentage of face value for held-to-maturity securities | 6.00% | |||||
Coupon rate for held-to-maturity securities | 2.00% | |||||
CMBS | Minimum | Lennar Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest rate | 4.70% | 4.70% | ||||
Discount rate as a percentage of face value for held-to-maturity securities | 6.50% | |||||
Coupon rate for held-to-maturity securities | 1.30% | |||||
CMBS | Maximum | Financial Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Discount rate as a percentage of face value for held-to-maturity securities | 84.00% | |||||
Coupon rate for held-to-maturity securities | 5.30% | |||||
CMBS | Maximum | Lennar Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest rate | 4.80% | 4.80% | ||||
Discount rate as a percentage of face value for held-to-maturity securities | 86.10% | |||||
Coupon rate for held-to-maturity securities | 4.00% | |||||
[1] | Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities ("VIEs") and liabilities of consolidated VIEs as to which neither Lennar Corporation, or any of its subsidiaries, has any obligations. As of May 31, 2019 , total assets include $1.4 billion related to consolidated VIEs of which $52.9 million is included in Homebuilding cash and cash equivalents, $103.3 million in Homebuilding receivables, net, $240.1 million in Homebuilding finished homes and construction in progress, $301.0 million in Homebuilding land and land under development, $394.7 million in Homebuilding consolidated inventory not owned, $4.1 million in Homebuilding investments in unconsolidated entities, $10.4 million in Homebuilding other assets, $187.2 million in Financial Services assets, $50.8 million in Multifamily assets and $7.2 million in Lennar Other assets. As of November 30, 2018 , total assets include $666.2 million related to consolidated VIEs of which $57.6 million is included in Homebuilding cash and cash equivalents, $0.2 million in Homebuilding receivables, net, $81.7 million in Homebuilding finished homes and construction in progress, $293.1 million in Homebuilding land and land under development, $209.0 million in Homebuilding consolidated inventory not owned, $3.8 million in Homebuilding investments in unconsolidated entities, $10.5 million in Homebuilding other assets and $10.3 million in Lennar Other assets. |
Financial Services Segment (S_3
Financial Services Segment (Schedule Of Loan Origination Liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Loss Contingency Accrual [Roll Forward] | ||||
Origination liabilities assumed related to CalAtlantic acquisition | $ 0 | $ 0 | $ 0 | $ 3,959 |
Financial Services | Loss origination liability | ||||
Loss Contingency Accrual [Roll Forward] | ||||
Loan origination liabilities, beginning of period | 6,697 | 27,110 | 48,584 | 22,543 |
Provision for losses | 914 | 990 | 1,587 | 1,637 |
Payments/settlements | (187) | (84) | (42,747) | (123) |
Loan origination liabilities, end of period | $ 7,424 | $ 28,016 | $ 7,424 | $ 28,016 |
Multifamily Segment (Assets and
Multifamily Segment (Assets and Liabilities related to Multifamily Segment) (Details) - USD ($) $ in Thousands | May 31, 2019 | Nov. 30, 2018 | May 31, 2018 | |
Assets: | ||||
Total assets | [1] | $ 29,583,064 | $ 28,566,181 | |
Liabilities: | ||||
Total liabilities | [2] | 14,336,529 | 13,883,224 | |
Multifamily | ||||
Assets: | ||||
Cash and cash equivalents | 5,203 | 7,832 | $ 15,380 | |
Receivables, net | 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 | ||
Total assets | [1] | 1,046,196 | 874,219 | |
Liabilities: | ||||
Accounts payable and other liabilities | 175,654 | 170,616 | ||
Notes payable | 39,662 | 0 | ||
Total liabilities | [2] | $ 215,316 | $ 170,616 | |
[1] | Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities ("VIEs") and liabilities of consolidated VIEs as to which neither Lennar Corporation, or any of its subsidiaries, has any obligations. As of May 31, 2019 , total assets include $1.4 billion related to consolidated VIEs of which $52.9 million is included in Homebuilding cash and cash equivalents, $103.3 million in Homebuilding receivables, net, $240.1 million in Homebuilding finished homes and construction in progress, $301.0 million in Homebuilding land and land under development, $394.7 million in Homebuilding consolidated inventory not owned, $4.1 million in Homebuilding investments in unconsolidated entities, $10.4 million in Homebuilding other assets, $187.2 million in Financial Services assets, $50.8 million in Multifamily assets and $7.2 million in Lennar Other assets. As of November 30, 2018 , total assets include $666.2 million related to consolidated VIEs of which $57.6 million is included in Homebuilding cash and cash equivalents, $0.2 million in Homebuilding receivables, net, $81.7 million in Homebuilding finished homes and construction in progress, $293.1 million in Homebuilding land and land under development, $209.0 million in Homebuilding consolidated inventory not owned, $3.8 million in Homebuilding investments in unconsolidated entities, $10.5 million in Homebuilding other assets and $10.3 million in Lennar Other assets. | |||
[2] | Under certain provisions of ASC 810, the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated VIEs and liabilities of consolidated VIEs as to which neither Lennar Corporation, or any of its subsidiaries, has any obligations. As of May 31, 2019 , total liabilities include $928.9 million related to consolidated VIEs as to which there was no recourse against the Company, of which $17.3 million is included in Homebuilding accounts payable, $370.7 million in Homebuilding senior notes and other debts payable, $346.3 million in Homebuilding liabilities related to consolidated inventory not owned, $1.7 million in Homebuilding other liabilities, $190.6 million in Financial Services liabilities, $1.0 million in Multifamily liabilities and $1.3 million in Lennar Other liabilities. As of November 30, 2018 , total liabilities include $242.5 million related to consolidated VIEs as to which there was no recourse against the Company, of which $11.4 million is included in Homebuilding accounts payable, $51.9 million in Homebuilding senior notes and other debt payable, $175.6 million in Homebuilding liabilities related to consolidated inventory not owned, $2.6 million in Homebuilding other liabilities and $1.0 million in Lennar Other liabilities. |
Multifamily (Narrative) (Detail
Multifamily (Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2018asset | May 31, 2019USD ($)apartment | May 31, 2018USD ($) | May 31, 2019USD ($)apartmentasset | May 31, 2018USD ($) | Mar. 31, 2019USD ($)apartment | Nov. 30, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||||||
Distributions of capital from unconsolidated entities | $ 140,888 | $ 196,073 | |||||
Multifamily | |||||||
Segment Reporting Information [Line Items] | |||||||
Non-recourse debt with completion guarantees | $ 1,000,000 | 1,000,000 | $ 1,000,000 | ||||
Investments in unconsolidated entities | 510,223 | 510,223 | 481,129 | ||||
Gain on disposition of assets | $ 17,400 | 15,500 | 21,500 | ||||
Multifamily | Variable Interest Entity, Not Primary Beneficiary | Equity Commitments | |||||||
Segment Reporting Information [Line Items] | |||||||
Obligations related to VIEs | 237,000 | ||||||
Multifamily | Lennar Multifamily Venture | |||||||
Segment Reporting Information [Line Items] | |||||||
Total equity commitments | 2,200,000 | 2,200,000 | |||||
Equity commitments | 504,000 | 504,000 | |||||
Equity commitments called during period | 121,800 | ||||||
Equity commitment contributions during period | 30,200 | ||||||
Distributions of capital from unconsolidated entities | 9,500 | ||||||
Equity Commitments Called | 1,900,000 | 1,900,000 | |||||
Funds contributed by the company | 471,100 | 471,100 | |||||
Investments in unconsolidated entities | 395,400 | 395,400 | 383,400 | ||||
Multifamily | Lennar Multifamily Venture | Variable Interest Entity, Not Primary Beneficiary | Equity Commitments | |||||||
Segment Reporting Information [Line Items] | |||||||
Obligations related to VIEs | 32,900 | 32,900 | |||||
Multifamily | Lennar Multifamily Venture II LP | |||||||
Segment Reporting Information [Line Items] | |||||||
Total equity commitments | 1,300,000 | 1,300,000 | |||||
Equity commitments | 381,000 | 381,000 | |||||
Change in total equity commitments | 471,000 | ||||||
Change in equity commitments | 126,000 | ||||||
Equity commitments called during period | 138,300 | ||||||
Equity commitment contributions during period | 23,500 | ||||||
Equity commitment contributions during period, inventory and ash | 64,500 | ||||||
Remaining equity commitment | 276,300 | 276,300 | |||||
Distributions of capital from unconsolidated entities | 40,900 | ||||||
Equity Commitments Called | 349,400 | 349,400 | |||||
Investments in unconsolidated entities | $ 85,000 | $ 85,000 | 63,000 | ||||
Number of assets transferred | asset | 8 | 10 | |||||
Number of apartments | apartment | 3,800 | 3,800 | 3,000 | ||||
Projected project costs | $ 1,600,000 | $ 1,600,000 | $ 1,300,000 | ||||
Multifamily | Financial Letters of Credit | |||||||
Segment Reporting Information [Line Items] | |||||||
Letters of credit outstanding | 1,200 | 1,200 | $ 4,600 | ||||
Management Fee | Multifamily | Unconsolidated Entities | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue | 13,300 | 12,400 | 26,400 | 23,900 | |||
General Contractor Services | Multifamily | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue | 99,200 | 97,000 | 181,600 | 178,800 | |||
Cost of revenue | $ 95,200 | $ 93,600 | $ 174,600 | $ 172,200 |
Multifamily Segment (Condensed
Multifamily Segment (Condensed Financial Information by Equity Method Investments) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
May 31, 2019USD ($) | May 31, 2018USD ($)property | May 31, 2019USD ($)property | May 31, 2018USD ($)property | Nov. 30, 2018USD ($) | |
Liabilities and equity: | |||||
Equity in earnings (loss) from unconsolidated entities | $ (5,908) | $ (3,740) | |||
Multifamily | |||||
Assets: | |||||
Cash and cash equivalents | $ 28,217 | 28,217 | $ 61,571 | ||
Operating properties and equipment | 4,063,560 | 4,063,560 | 3,708,613 | ||
Other assets | 50,227 | 50,227 | 40,899 | ||
Total assets | 4,142,004 | 4,142,004 | 3,811,083 | ||
Liabilities and equity: | |||||
Accounts payable and other liabilities | 190,785 | 190,785 | 199,119 | ||
Notes payable | 1,596,850 | 1,596,850 | 1,381,656 | ||
Equity | 2,354,369 | 2,354,369 | 2,230,308 | ||
Total liabilities and equity | 4,142,004 | 4,142,004 | 3,811,083 | ||
Investment | 510,223 | 510,223 | 481,129 | ||
Debt issuance cost | 21,000 | 21,000 | $ 15,700 | ||
Revenues | 38,609 | $ 27,121 | 73,980 | 51,073 | |
Costs and expenses | 55,085 | 43,482 | 111,213 | 75,277 | |
Other income (expense), net | 0 | 31,562 | 21,400 | 38,869 | |
Net earnings of unconsolidated entities | (16,476) | 15,201 | (15,833) | 14,665 | |
Equity in earnings (loss) from unconsolidated entities | $ (3,018) | $ 14,281 | $ 7,563 | $ 17,023 | |
Number of operating properties sold | property | 2 | 1 | 3 | ||
Gain on disposition of assets | $ 17,400 | $ 15,500 | $ 21,500 | ||
Deferred development fees | $ 11,900 |
Lennar Other Segment (Assets An
Lennar Other Segment (Assets And Liabilities By Segment) (Details) - USD ($) $ in Thousands | May 31, 2019 | Nov. 30, 2018 | May 31, 2018 | |
Assets: | ||||
Total assets | [1] | $ 29,583,064 | $ 28,566,181 | |
Liabilities: | ||||
Total liabilities | [2] | 14,336,529 | 13,883,224 | |
Lennar Other | ||||
Assets: | ||||
Cash and cash equivalents | 15,768 | 24,334 | $ 43,729 | |
Restricted cash | 975 | 7,175 | $ 12,096 | |
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 | 35,257 | 47,740 | ||
Total assets | [1] | 549,150 | 588,959 | |
Liabilities: | ||||
Notes and other debts payable | 15,178 | 14,488 | ||
Other | 14,861 | 53,020 | ||
Total liabilities | [2] | $ 30,039 | $ 67,508 | |
[1] | Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities ("VIEs") and liabilities of consolidated VIEs as to which neither Lennar Corporation, or any of its subsidiaries, has any obligations. As of May 31, 2019 , total assets include $1.4 billion related to consolidated VIEs of which $52.9 million is included in Homebuilding cash and cash equivalents, $103.3 million in Homebuilding receivables, net, $240.1 million in Homebuilding finished homes and construction in progress, $301.0 million in Homebuilding land and land under development, $394.7 million in Homebuilding consolidated inventory not owned, $4.1 million in Homebuilding investments in unconsolidated entities, $10.4 million in Homebuilding other assets, $187.2 million in Financial Services assets, $50.8 million in Multifamily assets and $7.2 million in Lennar Other assets. As of November 30, 2018 , total assets include $666.2 million related to consolidated VIEs of which $57.6 million is included in Homebuilding cash and cash equivalents, $0.2 million in Homebuilding receivables, net, $81.7 million in Homebuilding finished homes and construction in progress, $293.1 million in Homebuilding land and land under development, $209.0 million in Homebuilding consolidated inventory not owned, $3.8 million in Homebuilding investments in unconsolidated entities, $10.5 million in Homebuilding other assets and $10.3 million in Lennar Other assets. | |||
[2] | Under certain provisions of ASC 810, the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated VIEs and liabilities of consolidated VIEs as to which neither Lennar Corporation, or any of its subsidiaries, has any obligations. As of May 31, 2019 , total liabilities include $928.9 million related to consolidated VIEs as to which there was no recourse against the Company, of which $17.3 million is included in Homebuilding accounts payable, $370.7 million in Homebuilding senior notes and other debts payable, $346.3 million in Homebuilding liabilities related to consolidated inventory not owned, $1.7 million in Homebuilding other liabilities, $190.6 million in Financial Services liabilities, $1.0 million in Multifamily liabilities and $1.3 million in Lennar Other liabilities. As of November 30, 2018 , total liabilities include $242.5 million related to consolidated VIEs as to which there was no recourse against the Company, of which $11.4 million is included in Homebuilding accounts payable, $51.9 million in Homebuilding senior notes and other debt payable, $175.6 million in Homebuilding liabilities related to consolidated inventory not owned, $2.6 million in Homebuilding other liabilities and $1.0 million in Lennar Other liabilities. |
Lennar Other Segment (Narrative
Lennar Other Segment (Narrative) (Details) - Lennar Other - USD ($) | 3 Months Ended | 6 Months Ended | ||||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | Nov. 30, 2018 | ||
Segment Reporting Information [Line Items] | ||||||
Investments held-to-maturity | $ 60,449,000 | $ 60,449,000 | $ 59,974,000 | |||
CMBS | ||||||
Segment Reporting Information [Line Items] | ||||||
Investments held-to-maturity | 60,400,000 | 60,400,000 | 60,000,000 | [1] | ||
Impairment charges for CMBS securities | 0 | $ 0 | 0 | $ 0 | ||
Outstanding debt | $ 13,300,000 | $ 13,300,000 | $ 12,600,000 | |||
CMBS | Minimum | ||||||
Segment Reporting Information [Line Items] | ||||||
Discount rate as a percentage of face value for held-to-maturity securities | 6.50% | |||||
Coupon rate for held-to-maturity securities | 1.30% | |||||
Interest rate | 4.70% | 4.70% | ||||
CMBS | Maximum | ||||||
Segment Reporting Information [Line Items] | ||||||
Discount rate as a percentage of face value for held-to-maturity securities | 86.10% | |||||
Coupon rate for held-to-maturity securities | 4.00% | |||||
Interest rate | 4.80% | 4.80% | ||||
[1] | Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities ("VIEs") and liabilities of consolidated VIEs as to which neither Lennar Corporation, or any of its subsidiaries, has any obligations. As of May 31, 2019 , total assets include $1.4 billion related to consolidated VIEs of which $52.9 million is included in Homebuilding cash and cash equivalents, $103.3 million in Homebuilding receivables, net, $240.1 million in Homebuilding finished homes and construction in progress, $301.0 million in Homebuilding land and land under development, $394.7 million in Homebuilding consolidated inventory not owned, $4.1 million in Homebuilding investments in unconsolidated entities, $10.4 million in Homebuilding other assets, $187.2 million in Financial Services assets, $50.8 million in Multifamily assets and $7.2 million in Lennar Other assets. As of November 30, 2018 , total assets include $666.2 million related to consolidated VIEs of which $57.6 million is included in Homebuilding cash and cash equivalents, $0.2 million in Homebuilding receivables, net, $81.7 million in Homebuilding finished homes and construction in progress, $293.1 million in Homebuilding land and land under development, $209.0 million in Homebuilding consolidated inventory not owned, $3.8 million in Homebuilding investments in unconsolidated entities, $10.5 million in Homebuilding other assets and $10.3 million in Lennar Other assets. |
Cash and Cash Equivalents and_3
Cash and Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | 6 Months Ended | |||||
May 31, 2019 | Nov. 30, 2018 | May 31, 2018 | Nov. 30, 2017 | |||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Total cash and cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows | $ 1,021,071 | $ 1,595,978 | $ 1,196,351 | $ 2,694,084 | ||
Cash held in escrow | $ 478,900 | 926,100 | ||||
Escrow deposit period | 3 days | |||||
Homebuilding | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Cash and cash equivalents | $ 800,678 | [1] | 1,337,807 | [1] | 931,753 | |
Restricted cash | 11,687 | [1] | 12,399 | [1] | 17,509 | |
Financial Services | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Cash and cash equivalents | 171,892 | 188,485 | 162,992 | |||
Restricted cash | 14,868 | 17,944 | 12,892 | |||
Multifamily | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Cash and cash equivalents | 5,203 | 7,832 | 15,380 | |||
Lennar Other | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Cash and cash equivalents | 15,768 | 24,334 | 43,729 | |||
Restricted cash | $ 975 | $ 7,175 | $ 12,096 | |||
[1] | Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities ("VIEs") and liabilities of consolidated VIEs as to which neither Lennar Corporation, or any of its subsidiaries, has any obligations. As of May 31, 2019 , total assets include $1.4 billion related to consolidated VIEs of which $52.9 million is included in Homebuilding cash and cash equivalents, $103.3 million in Homebuilding receivables, net, $240.1 million in Homebuilding finished homes and construction in progress, $301.0 million in Homebuilding land and land under development, $394.7 million in Homebuilding consolidated inventory not owned, $4.1 million in Homebuilding investments in unconsolidated entities, $10.4 million in Homebuilding other assets, $187.2 million in Financial Services assets, $50.8 million in Multifamily assets and $7.2 million in Lennar Other assets. As of November 30, 2018 , total assets include $666.2 million related to consolidated VIEs of which $57.6 million is included in Homebuilding cash and cash equivalents, $0.2 million in Homebuilding receivables, net, $81.7 million in Homebuilding finished homes and construction in progress, $293.1 million in Homebuilding land and land under development, $209.0 million in Homebuilding consolidated inventory not owned, $3.8 million in Homebuilding investments in unconsolidated entities, $10.5 million in Homebuilding other assets and $10.3 million in Lennar Other assets. |
Homebuilding Senior Notes and_3
Homebuilding Senior Notes and Other Debts Payable (Schedule of Senior Notes and Other Debts Payable) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | May 31, 2019 | Nov. 30, 2018 | |
Senior Notes | 4.500% senior notes due 2019 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.50% | 4.50% | ||
Senior Notes | 4.50% senior notes due 2019 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.50% | |||
Senior Notes | 4.750% senior notes due 2021 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.75% | |||
Senior Notes | 4.750% senior notes due 2022 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.75% | |||
Senior Notes | 4.875% senior notes due December 2023 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.875% | |||
Senior Notes | 4.750% senior notes due 2025 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.75% | |||
Homebuilding | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable | [1] | $ 9,390,941 | $ 8,543,868 | |
Homebuilding | 4.125% senior notes due 2022 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.125% | |||
Homebuilding | 4.500% senior notes due 2024 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.50% | |||
Homebuilding | Senior Notes | 4.500% senior notes due 2019 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable | $ 499,981 | 499,585 | ||
Interest rate | 4.50% | |||
Homebuilding | Senior Notes | 4.50% senior notes due 2019 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable | $ 599,602 | 599,176 | ||
Interest rate | 4.50% | |||
Homebuilding | Senior Notes | 6.625% senior notes due 2020 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable | $ 307,701 | 311,735 | ||
Interest rate | 6.625% | |||
Homebuilding | Senior Notes | 2.95% senior notes due 2020 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable | $ 299,129 | 298,838 | ||
Interest rate | 2.95% | |||
Homebuilding | Senior Notes | 8.375% senior notes due 2021 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable | $ 427,378 | 435,897 | ||
Interest rate | 8.375% | |||
Homebuilding | Senior Notes | 4.750% senior notes due 2021 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable | $ 498,502 | 498,111 | ||
Interest rate | 4.75% | |||
Homebuilding | Senior Notes | 6.25% senior notes due December 2021 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable | $ 312,768 | 315,283 | ||
Interest rate | 6.25% | |||
Homebuilding | Senior Notes | 4.125% senior notes due 2022 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable | $ 597,390 | 596,894 | ||
Interest rate | 4.125% | |||
Homebuilding | Senior Notes | 5.375% senior notes due 2022 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable | $ 259,627 | 261,055 | ||
Interest rate | 5.375% | |||
Homebuilding | Senior Notes | 4.750% senior notes due 2022 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable | $ 571,104 | 570,564 | ||
Interest rate | 4.75% | |||
Homebuilding | Senior Notes | 4.875% senior notes due December 2023 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable | $ 396,156 | 395,759 | ||
Interest rate | 4.875% | |||
Homebuilding | Senior Notes | 4.500% senior notes due 2024 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable | $ 646,440 | 646,078 | ||
Interest rate | 4.50% | |||
Homebuilding | Senior Notes | 5.875% senior notes due 2024 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable | $ 450,496 | 452,833 | ||
Interest rate | 5.875% | |||
Homebuilding | Senior Notes | 4.750% senior notes due 2025 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable | $ 497,336 | 497,114 | ||
Interest rate | 4.75% | |||
Homebuilding | Senior Notes | 5.25% senior notes due 2026 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable | $ 408,527 | 409,133 | ||
Interest rate | 5.25% | |||
Homebuilding | Senior Notes | 5.00% senior notes due 2027 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable | $ 353,083 | 353,275 | ||
Interest rate | 5.00% | |||
Homebuilding | Senior Notes | 4.75% senior notes due 2027 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable | $ 892,672 | 892,297 | ||
Interest rate | 4.75% | |||
Homebuilding | Senior Notes | 0.25% convertible senior notes due 2019 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable | $ 0 | 1,291 | ||
Interest rate | 0.25% | |||
Homebuilding | Mortgage notes on land and other debt | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable | $ 823,049 | 508,950 | ||
Homebuilding | Unsecured revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable | 550,000 | $ 0 | ||
CalAtlantic Group, Inc. | Senior Notes | 6.625% senior notes due 2020 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable | 267,700 | |||
CalAtlantic Group, Inc. | Senior Notes | 8.375% senior notes due 2021 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable | 397,600 | |||
CalAtlantic Group, Inc. | Senior Notes | 6.25% senior notes due December 2021 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable | 292,000 | |||
CalAtlantic Group, Inc. | Senior Notes | 5.375% senior notes due 2022 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable | 240,800 | |||
CalAtlantic Group, Inc. | Senior Notes | 5.875% senior notes due 2024 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable | 421,400 | |||
CalAtlantic Group, Inc. | Senior Notes | 5.25% senior notes due 2026 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable | 395,500 | |||
CalAtlantic Group, Inc. | Senior Notes | 5.00% senior notes due 2027 | ||||
Debt Instrument [Line Items] | ||||
Senior notes and other debts payable | $ 347,300 | |||
[1] | Under certain provisions of ASC 810, the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated VIEs and liabilities of consolidated VIEs as to which neither Lennar Corporation, or any of its subsidiaries, has any obligations. As of May 31, 2019 , total liabilities include $928.9 million related to consolidated VIEs as to which there was no recourse against the Company, of which $17.3 million is included in Homebuilding accounts payable, $370.7 million in Homebuilding senior notes and other debts payable, $346.3 million in Homebuilding liabilities related to consolidated inventory not owned, $1.7 million in Homebuilding other liabilities, $190.6 million in Financial Services liabilities, $1.0 million in Multifamily liabilities and $1.3 million in Lennar Other liabilities. As of November 30, 2018 , total liabilities include $242.5 million related to consolidated VIEs as to which there was no recourse against the Company, of which $11.4 million is included in Homebuilding accounts payable, $51.9 million in Homebuilding senior notes and other debt payable, $175.6 million in Homebuilding liabilities related to consolidated inventory not owned, $2.6 million in Homebuilding other liabilities and $1.0 million in Lennar Other liabilities. |
Homebuilding Senior Notes and_4
Homebuilding Senior Notes and Other Debts Payable (Narrative) (Details) - USD ($) | Jun. 30, 2019 | May 31, 2019 | Apr. 30, 2019 | Mar. 31, 2019 | Nov. 30, 2018 |
Senior Notes | 4.500% senior notes due 2019 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.50% | 4.50% | |||
Homebuilding | |||||
Debt Instrument [Line Items] | |||||
Guarantee by subsidiaries | $ 75,000,000 | ||||
Homebuilding | Surety Bond | |||||
Debt Instrument [Line Items] | |||||
Outstanding performance and surety bonds | 2,800,000,000 | ||||
Uncompleted site improvements amount | $ 1,300,000,000 | ||||
Uncompleted site improvements percent | 46.00% | ||||
Homebuilding | Unsecured revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 2,800,000,000 | ||||
Accordion feature | 400,000,000 | ||||
Homebuilding | Unsecured revolving credit facility | Credit Facility Due in April 2023 | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 2,300,000,000 | ||||
Homebuilding | Unsecured revolving credit facility | Credit Facility Due in April 2024 | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 2,400,000,000 | ||||
Homebuilding | Unsecured revolving credit facility | Credit Facility Due in June 2020 | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 50,000,000 | ||||
Homebuilding | Letter of Credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 315,000,000 | ||||
Homebuilding | Performance Letters of Credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 500,000,000 | ||||
Letters of credit outstanding | 663,000,000 | $ 598,400,000 | |||
Homebuilding | Financial Letters of Credit | |||||
Debt Instrument [Line Items] | |||||
Letters of credit outstanding | 158,500,000 | 165,400,000 | |||
Homebuilding | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt issuance cost | $ 26,900,000 | $ 31,200,000 | |||
Homebuilding | Senior Notes | 4.500% senior notes due 2019 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.50% | ||||
Subsequent Event | Homebuilding | Senior Notes | 4.500% senior notes due 2019 | |||||
Debt Instrument [Line Items] | |||||
Repayments of principal | $ 500,000,000 | ||||
Redemption price | 100.00% |
Product Warranty (Schedule of P
Product Warranty (Schedule of Product Warranty Reserve) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Warranty reserve, beginning of the period | $ 295,622 | $ 270,056 | $ 319,109 | $ 164,619 |
Warranties issued | 47,855 | 47,855 | 81,826 | 72,544 |
Adjustments to pre-existing warranties from changes in estimates | 2,004 | 7,227 | (7,523) | 10,095 |
Warranties assumed related to acquisitions | 0 | 9,150 | 0 | 117,554 |
Payments | (53,857) | (39,578) | (101,788) | (70,102) |
Warranty reserve, end of period | $ 291,624 | $ 294,710 | $ 291,624 | $ 294,710 |
Share-Based Payments (Compensat
Share-Based Payments (Compensation Expense, Share-Based Payment Awards) (Details) - Nonvested shares - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Nonvested shares granted (in shares) | 0 | 0 | 0 | 400 |
Compensation expense for share-based awards | $ 14.5 | $ 16 | $ 31.4 | $ 33.7 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Disclosures - (Carrying Amounts And Estimated Fair Value Of Financial Instruments) (Details) - USD ($) $ in Thousands | May 31, 2019 | Nov. 30, 2018 |
Financial Services | Level 3 | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable and loans held-for-investment | $ 76,248 | $ 70,216 |
Investments held-to-maturity | 167,014 | 136,982 |
Financial Services | Level 3 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable and loans held-for-investment | 71,872 | 63,794 |
Investments held-to-maturity | 194,796 | 149,767 |
Financial Services | Level 2 | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments held-to-maturity | 32,398 | 52,490 |
Notes and other debts payable | 1,214,017 | 1,558,702 |
Financial Services | Level 2 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments held-to-maturity | 32,366 | 52,220 |
Notes and other debts payable | 1,215,548 | 1,559,718 |
Homebuilding | Level 2 | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | 9,390,941 | 8,543,868 |
Homebuilding | Level 2 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | 9,560,305 | 8,336,166 |
Multifamily | Level 2 | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | 39,662 | 0 |
Multifamily | Level 2 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | 39,662 | 0 |
Lennar Other | Level 3 | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments held-to-maturity | 60,449 | 59,974 |
Lennar Other | Level 3 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments held-to-maturity | 64,364 | 72,986 |
Lennar Other | Level 2 | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | 15,178 | 14,488 |
Lennar Other | Level 2 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes and other debts payable | $ 15,178 | $ 14,488 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Disclosures - (Fair Value Measured On Recurring Basis) (Details) - USD ($) $ in Thousands | May 31, 2019 | Nov. 30, 2018 |
Lennar Other | Fair Value, Measurements, Recurring | RMF loans held-for-sale | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Aggregate principal balance | $ 255,700 | $ 61,000 |
Aggregate fair value of loans (below) in excess of principal balance | 3,900 | 700 |
Lennar Other | Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 259,599 | 61,691 |
Financial Services | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Investments available-for-sale | 3,356 | 4,161 |
Financial Services | Mortgage loan commitments | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Financial asset | 25,200 | 16,400 |
Financial Services | Fair Value, Measurements, Recurring | RMF loans held-for-sale | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Aggregate principal balance | 1,100,000 | 1,100,000 |
Aggregate fair value of loans (below) in excess of principal balance | 40,200 | 37,300 |
Financial Services | Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Investments available-for-sale | 3,356 | 4,161 |
Financial Services | Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 1,160,676 | 1,152,198 |
Financial Services | Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Mortgage servicing rights | 29,419 | 37,206 |
Financial Services | Fair Value, Measurements, Recurring | Mortgage loan commitments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Financial asset | 25,225 | 16,373 |
Financial Services | Fair Value, Measurements, Recurring | Forward contracts | Level 2 | ||
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||
Forward contracts | $ (11,273) | $ (10,360) |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Disclosures - (Narrative) (Details) | 6 Months Ended | |
May 31, 2019USD ($)communityhomes | May 31, 2018USD ($)communityhomes | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Active communities | community | 1,320 | 1,320 |
Number of communities assessed for impairment | community | 52 | 19 |
Number of homesites assessed for impairment | homes | 2,213 | 1,013 |
Inventory with potential indicators of impairment | $ 415,200,000 | $ 113,200,000 |
Valuation adjustments to inventory | 0 | $ 17,600,000 |
Number of homes impaired | homes | 570 | |
Number of communities impaired | community | 3 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Carrying value of homesites impaired | $ 31,300,000 | |
Commitments to Sell MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Open commitments | $ 1,500,000,000 | |
Mortgage Prepayment Rate | Level 3 | Financial Services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Unobservable inputs for valuation of mortgage servicing rights | 0.163 | |
Discount Rate | Level 3 | Financial Services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Unobservable inputs for valuation of mortgage servicing rights | 0.124 | |
Delinquency Rate | Level 3 | Financial Services | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Unobservable inputs for valuation of mortgage servicing rights | 0.077 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Disclosures - (Schedule Of Gains And Losses Of Financial Instruments) (Details) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||||
Changes in fair value included in other comprehensive income (loss), net of tax | $ 561 | $ (589) | $ 769 | $ (1,247) |
Fair Value, Measurements, Recurring | ||||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||||
Changes in fair value included in other comprehensive income (loss), net of tax | 561 | (589) | 769 | (1,247) |
Fair Value, Measurements, Recurring | Financial Services | Loans held-for-sale | ||||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||||
Changes in fair value included in revenue | 13,007 | 16,586 | 2,887 | 289 |
Fair Value, Measurements, Recurring | Financial Services | Mortgage loan commitments | ||||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||||
Changes in fair value included in revenue | 9,111 | 13,438 | 8,852 | 15,219 |
Fair Value, Measurements, Recurring | Financial Services | Forward contracts | ||||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||||
Changes in fair value included in revenue | (9,766) | (11,039) | (913) | (7,876) |
Fair Value, Measurements, Recurring | Financial Services | Investments available-for-sale | ||||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||||
Changes in fair value included in revenue | $ 176 | $ 126 | $ 176 | $ 126 |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Disclosures - (Reconciliation Of Beginning And Ending Balance For The Company's Level 3 Recurring Fair Value Measurements) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Mortgage servicing rights | Financial Services | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 35,448 | $ 36,772 | $ 37,206 | $ 31,163 |
Purchases/loan originations | 672 | 1,857 | 2,259 | 4,145 |
Sales/loan originations sold, including those not settled | 0 | 0 | 0 | 0 |
Disposals/settlements | (1,378) | (3,326) | (2,287) | (4,539) |
Changes in fair value | (5,323) | (711) | (7,759) | 3,823 |
Interest and principal paydowns | 0 | 0 | 0 | 0 |
Ending balance | 29,419 | 34,592 | 29,419 | 34,592 |
RMF loans held-for-sale | Lennar Other | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 131,042 | 123,398 | 61,691 | 234,403 |
Purchases/loan originations | 435,189 | 425,870 | 705,311 | 663,835 |
Sales/loan originations sold, including those not settled | (299,962) | (228,141) | (500,549) | (575,853) |
Disposals/settlements | (9,920) | 0 | (9,920) | 0 |
Changes in fair value | 3,022 | 2,618 | 3,324 | 3,370 |
Interest and principal paydowns | 228 | 1,628 | (258) | (382) |
Ending balance | $ 259,599 | $ 325,373 | $ 259,599 | $ 325,373 |
Financial Instruments and Fai_8
Financial Instruments and Fair Value Disclosures - (Fair Value Assets Measured On Nonrecurring Basis) (Details) - Fair Value, Measurements, Nonrecurring - Level 3 - Homebuilding - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Fair Value, Assets and Liabilities Measured on a Recuring and Nonrecurring Basis [Line Items] | ||||
Land and land under development, carrying value | $ 0 | $ 13,858 | $ 6,954 | $ 66,787 |
Land and land under development, fair value | 0 | 3,122 | 3,001 | 46,687 |
Land and land under development, total gains (losses) | $ 0 | $ (10,736) | $ (3,953) | $ (20,100) |
Financial Instruments and Fai_9
Financial Instruments and Fair Value Disclosures - (Unobservable Inputs Used in Discounted Cash Flow Model to Determine the Fair Value of Communities) (Details) $ / homes in Thousands | May 31, 2018$ / homes |
Average selling price | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | |
Unobservable inputs | 233,000 |
Discount rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | |
Unobservable inputs | 0.20 |
Minimum | Absorption rate per quarter (homes) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | |
Unobservable inputs | 5 |
Maximum | Average selling price | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | |
Unobservable inputs | 572,000 |
Maximum | Absorption rate per quarter (homes) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | |
Unobservable inputs | 16 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 31, 2019USD ($)joint_venture | May 31, 2019USD ($)joint_ventureentity | May 31, 2018USD ($) | Nov. 30, 2018USD ($)joint_venture | |
Variable Interest Entity [Line Items] | ||||
Number of entities consolidated | entity | 4 | |||
VIE assets consolidated | $ 500,700 | |||
VIE liabilities consolidated | 585,000 | |||
Consolidated VIEs assets | $ 1,400,000 | 1,400,000 | $ 666,200 | |
Consolidated VIEs liabilities | $ 928,900 | 928,900 | $ 242,500 | |
Loss on consolidation of previously unconsolidated entity | $ 48,874 | $ 0 | ||
Number of unconsolidated entities debt repayment guarantee | joint_venture | 2 | 2 | 4 | |
Variable Interest Entity, Not Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Decrease in consolidated inventory | $ 185,700 | |||
Variable Interest Entity, Not Primary Beneficiary Including Third Parties | ||||
Variable Interest Entity [Line Items] | ||||
Non-refundable option deposits and pre-acquisition costs | $ 326,800 | 326,800 | $ 209,500 | |
Financial Standby Letters of Credit | Variable Interest Entity, Not Primary Beneficiary Including Third Parties | ||||
Variable Interest Entity [Line Items] | ||||
Letters of credit outstanding | $ 69,100 | $ 69,100 | 72,400 | |
Multifamily | Equity Commitments | Variable Interest Entity, Not Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Obligations to make capital contributions to VIEs | (237,000) | |||
Multifamily | Financial Standby Letters of Credit | Variable Interest Entity, Not Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Obligations to make capital contributions to VIEs | (4,600) | |||
Homebuilding | Variable Interest Entity, Not Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Obligations to make capital contributions to VIEs | $ (54,800) | |||
Discount rate | ||||
Variable Interest Entity [Line Items] | ||||
Unconsolidated entity, measurement input | 0.15 | 0.15 | ||
Operating Segments | Homebuilding Other | ||||
Variable Interest Entity [Line Items] | ||||
Loss on consolidation of previously unconsolidated entity | $ 48,900 | $ 48,900 | ||
Operating Segments | Multifamily | Equity Commitments | Variable Interest Entity, Not Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Obligations to make capital contributions to VIEs | (309,200) | (309,200) | ||
Operating Segments | Multifamily | Financial Standby Letters of Credit | Variable Interest Entity, Not Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Obligations to make capital contributions to VIEs | (1,200) | (1,200) | ||
Operating Segments | Homebuilding | ||||
Variable Interest Entity [Line Items] | ||||
Consolidated VIEs assets | 240,500 | 240,500 | ||
Consolidated VIEs liabilities | $ 356,400 | 356,400 | ||
Loss on consolidation of previously unconsolidated entity | $ 48,900 |
Variable Interest Entities (Est
Variable Interest Entities (Estimated Maximum Exposure To Loss) (Details) - USD ($) $ in Thousands | May 31, 2019 | Nov. 30, 2018 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investments in Unconsolidated VIEs | $ 831,719 | $ 787,499 |
Lennar’s Maximum Exposure to Loss | 1,147,228 | 1,096,600 |
Homebuilding | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investments in Unconsolidated VIEs | 103,818 | 123,064 |
Lennar’s Maximum Exposure to Loss | 104,117 | 184,945 |
Obligations related to VIEs | 54,800 | |
Multifamily | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investments in Unconsolidated VIEs | 495,513 | 463,534 |
Lennar’s Maximum Exposure to Loss | 810,723 | 710,754 |
Multifamily | Variable Interest Entity, Not Primary Beneficiary | Equity Commitments | ||
Variable Interest Entity [Line Items] | ||
Obligations related to VIEs | 237,000 | |
Multifamily | Variable Interest Entity, Not Primary Beneficiary | Financial Standby Letters of Credit | ||
Variable Interest Entity [Line Items] | ||
Obligations related to VIEs | 4,600 | |
Financial Services | ||
Variable Interest Entity [Line Items] | ||
Investments held-to-maturity | 199,412 | 189,472 |
Financial Services | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investments in Unconsolidated VIEs | 167,014 | 136,982 |
Lennar’s Maximum Exposure to Loss | 167,014 | 136,982 |
Investments held-to-maturity | 167,000 | 137,000 |
Lennar Other | ||
Variable Interest Entity [Line Items] | ||
Investments held-to-maturity | 60,449 | 59,974 |
Lennar Other | Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investments in Unconsolidated VIEs | 65,374 | 63,919 |
Lennar’s Maximum Exposure to Loss | 65,374 | 63,919 |
Investments held-to-maturity | 60,400 | $ 60,000 |
Operating Segments | Multifamily | Variable Interest Entity, Not Primary Beneficiary | Equity Commitments | ||
Variable Interest Entity [Line Items] | ||
Obligations related to VIEs | 309,200 | |
Operating Segments | Multifamily | Variable Interest Entity, Not Primary Beneficiary | Financial Standby Letters of Credit | ||
Variable Interest Entity [Line Items] | ||
Obligations related to VIEs | $ 1,200 |
Supplemental Financial Inform_3
Supplemental Financial Information (Narrative) (Details) - USD ($) | 6 Months Ended | |
May 31, 2019 | Jun. 30, 2019 | |
Senior Notes | 4.500% senior notes due 2019 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.50% | 4.50% |
Senior Notes | 4.50% senior notes due 2019 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.50% | |
Senior Notes | 4.750% senior notes due 2021 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.75% | |
Senior Notes | 4.750% senior notes due 2022 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.75% | |
Senior Notes | 4.875% senior notes due December 2023 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.875% | |
Senior Notes | 4.750% senior notes due 2025 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.75% | |
Homebuilding | ||
Debt Instrument [Line Items] | ||
Guarantee by subsidiaries | $ 75,000,000 | |
Homebuilding | 4.125% senior notes due 2022 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.125% | |
Homebuilding | 4.500% senior notes due 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.50% | |
Homebuilding | Senior Notes | 0.25% convertible senior notes due 2019 | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.25% | |
Homebuilding | Senior Notes | 4.500% senior notes due 2019 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.50% | |
Homebuilding | Senior Notes | 4.50% senior notes due 2019 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.50% | |
Homebuilding | Senior Notes | 4.750% senior notes due 2021 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.75% | |
Homebuilding | Senior Notes | 6.25% senior notes due December 2021 | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.25% | |
Homebuilding | Senior Notes | 4.125% senior notes due 2022 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.125% | |
Homebuilding | Senior Notes | 5.375% senior notes due 2022 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.375% | |
Homebuilding | Senior Notes | 4.750% senior notes due 2022 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.75% | |
Homebuilding | Senior Notes | 4.875% senior notes due December 2023 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.875% | |
Homebuilding | Senior Notes | 4.500% senior notes due 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.50% | |
Homebuilding | Senior Notes | 5.875% senior notes due 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.875% | |
Homebuilding | Senior Notes | 4.750% senior notes due 2025 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.75% | |
Homebuilding | Senior Notes | 6.625% senior notes due 2020 | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.625% | |
Homebuilding | Senior Notes | 2.95% senior notes due 2020 | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.95% | |
Homebuilding | Senior Notes | 8.375% senior notes due 2021 | ||
Debt Instrument [Line Items] | ||
Interest rate | 8.375% | |
Homebuilding | Senior Notes | 5.25% senior notes due 2026 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.25% | |
Homebuilding | Senior Notes | 5.00% senior notes due 2027 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.00% | |
Homebuilding | Senior Notes | 4.75% senior notes due 2027 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.75% |
Supplemental Financial Inform_4
Supplemental Financial Information (Condensed Consolidating Balance Sheet) (Details) - USD ($) $ in Thousands | May 31, 2019 | Nov. 30, 2018 | May 31, 2018 | Nov. 30, 2017 | |||
Assets: | |||||||
Total assets | [1] | $ 29,583,064 | $ 28,566,181 | ||||
LIABILITIES AND EQUITY | |||||||
Total liabilities | [2] | 14,336,529 | 13,883,224 | ||||
Stockholders’ equity | [2] | 15,159,304 | 14,581,535 | ||||
Noncontrolling interests | [2] | 87,231 | 101,422 | ||||
Total equity | 15,246,535 | [2] | 14,682,957 | [2] | $ 13,698,870 | $ 7,986,132 | |
Total liabilities and equity | [2] | 29,583,064 | 28,566,181 | ||||
Homebuilding | |||||||
Assets: | |||||||
Cash and cash equivalents, restricted cash and receivables, net | 1,115,960 | 1,587,047 | |||||
Inventories | 18,774,488 | 17,068,704 | |||||
Investments in unconsolidated entities | [1] | 983,683 | 870,201 | ||||
Goodwill | [1] | 3,442,359 | 3,442,359 | ||||
Other assets | [1] | 1,202,965 | 1,355,782 | ||||
Investments in subsidiaries | 0 | 0 | |||||
Intercompany | 0 | 0 | |||||
Total assets | [1] | 25,519,455 | 24,324,093 | ||||
LIABILITIES AND EQUITY | |||||||
Accounts payable and other liabilities | 2,872,940 | 3,057,440 | |||||
Liabilities related to consolidated inventory not owned | [2] | 346,287 | 175,590 | ||||
Senior notes and other debts payable | [2] | 9,390,941 | 8,543,868 | ||||
Intercompany | 0 | 0 | |||||
Total liabilities | [2] | 12,610,168 | 11,776,898 | ||||
Financial Services | |||||||
Assets: | |||||||
Goodwill | 215,516 | 237,688 | |||||
Other assets | 136,244 | 125,886 | |||||
Total assets | [1] | 2,468,263 | 2,778,910 | ||||
LIABILITIES AND EQUITY | |||||||
Total liabilities | [2] | 1,481,006 | 1,868,202 | ||||
Multifamily | |||||||
Assets: | |||||||
Investments in unconsolidated entities | 510,223 | 481,129 | |||||
Other assets | 102,511 | 33,535 | |||||
Total assets | [1] | 1,046,196 | 874,219 | ||||
LIABILITIES AND EQUITY | |||||||
Accounts payable and other liabilities | 175,654 | 170,616 | |||||
Total liabilities | [2] | 215,316 | 170,616 | ||||
Lennar Other | |||||||
Assets: | |||||||
Investments in unconsolidated entities | 429,943 | 424,104 | |||||
Other assets | 35,257 | 47,740 | |||||
Total assets | [1] | 549,150 | 588,959 | ||||
LIABILITIES AND EQUITY | |||||||
Total liabilities | [2] | 30,039 | 67,508 | ||||
Reportable Legal Entities | Lennar Corporation | |||||||
Assets: | |||||||
Total assets | 24,378,654 | 23,354,154 | |||||
LIABILITIES AND EQUITY | |||||||
Total liabilities | 9,219,350 | 8,772,619 | |||||
Stockholders’ equity | 15,159,304 | 14,581,535 | |||||
Noncontrolling interests | 0 | 0 | |||||
Total equity | 15,159,304 | 14,581,535 | |||||
Total liabilities and equity | 24,378,654 | 23,354,154 | |||||
Reportable Legal Entities | Lennar Corporation | Homebuilding | |||||||
Assets: | |||||||
Cash and cash equivalents, restricted cash and receivables, net | 405,826 | 637,083 | |||||
Inventories | 0 | 0 | |||||
Investments in unconsolidated entities | 0 | 0 | |||||
Goodwill | 0 | 0 | |||||
Other assets | 350,057 | 339,307 | |||||
Investments in subsidiaries | 10,455,362 | 10,562,273 | |||||
Intercompany | 13,167,409 | 11,815,491 | |||||
Total assets | 24,378,654 | 23,354,154 | |||||
LIABILITIES AND EQUITY | |||||||
Accounts payable and other liabilities | 716,066 | 804,232 | |||||
Liabilities related to consolidated inventory not owned | 0 | 0 | |||||
Senior notes and other debts payable | 8,503,284 | 7,968,387 | |||||
Intercompany | 0 | 0 | |||||
Total liabilities | 9,219,350 | 8,772,619 | |||||
Reportable Legal Entities | Lennar Corporation | Financial Services | |||||||
Assets: | |||||||
Total assets | 0 | 0 | |||||
LIABILITIES AND EQUITY | |||||||
Total liabilities | 0 | 0 | |||||
Reportable Legal Entities | Lennar Corporation | Multifamily | |||||||
Assets: | |||||||
Total assets | 0 | 0 | |||||
LIABILITIES AND EQUITY | |||||||
Total liabilities | 0 | 0 | |||||
Reportable Legal Entities | Lennar Corporation | Lennar Other | |||||||
Assets: | |||||||
Total assets | 0 | 0 | |||||
LIABILITIES AND EQUITY | |||||||
Total liabilities | 0 | 0 | |||||
Reportable Legal Entities | Guarantor Subsidiaries | |||||||
Assets: | |||||||
Total assets | 24,381,309 | 23,191,884 | |||||
LIABILITIES AND EQUITY | |||||||
Total liabilities | 14,020,808 | 12,831,383 | |||||
Stockholders’ equity | 10,360,501 | 10,360,501 | |||||
Noncontrolling interests | 0 | 0 | |||||
Total equity | 10,360,501 | 10,360,501 | |||||
Total liabilities and equity | 24,381,309 | 23,191,884 | |||||
Reportable Legal Entities | Guarantor Subsidiaries | Homebuilding | |||||||
Assets: | |||||||
Cash and cash equivalents, restricted cash and receivables, net | 549,492 | 886,059 | |||||
Inventories | 18,233,687 | 16,679,245 | |||||
Investments in unconsolidated entities | 979,605 | 857,238 | |||||
Goodwill | 3,442,359 | 3,442,359 | |||||
Other assets | 699,458 | 878,582 | |||||
Investments in subsidiaries | 120,157 | 89,044 | |||||
Intercompany | 0 | 0 | |||||
Total assets | 24,024,758 | 22,832,527 | |||||
LIABILITIES AND EQUITY | |||||||
Accounts payable and other liabilities | 1,882,106 | 1,977,579 | |||||
Liabilities related to consolidated inventory not owned | 346,287 | 162,090 | |||||
Senior notes and other debts payable | 470,107 | 523,589 | |||||
Intercompany | 11,290,326 | 10,116,590 | |||||
Total liabilities | 13,988,826 | 12,779,848 | |||||
Reportable Legal Entities | Guarantor Subsidiaries | Financial Services | |||||||
Assets: | |||||||
Total assets | 237,468 | 232,632 | |||||
LIABILITIES AND EQUITY | |||||||
Total liabilities | 31,982 | 51,535 | |||||
Reportable Legal Entities | Guarantor Subsidiaries | Multifamily | |||||||
Assets: | |||||||
Total assets | 0 | 0 | |||||
LIABILITIES AND EQUITY | |||||||
Total liabilities | 0 | 0 | |||||
Reportable Legal Entities | Guarantor Subsidiaries | Lennar Other | |||||||
Assets: | |||||||
Total assets | 119,083 | 126,725 | |||||
LIABILITIES AND EQUITY | |||||||
Total liabilities | 0 | 0 | |||||
Reportable Legal Entities | Non-Guarantor Subsidiaries | |||||||
Assets: | |||||||
Total assets | 4,603,789 | 4,514,795 | |||||
LIABILITIES AND EQUITY | |||||||
Total liabilities | 4,301,540 | 4,122,557 | |||||
Stockholders’ equity | 215,018 | 290,816 | |||||
Noncontrolling interests | 87,231 | 101,422 | |||||
Total equity | 302,249 | 392,238 | |||||
Total liabilities and equity | 4,603,789 | 4,514,795 | |||||
Reportable Legal Entities | Non-Guarantor Subsidiaries | Homebuilding | |||||||
Assets: | |||||||
Cash and cash equivalents, restricted cash and receivables, net | 160,642 | 63,905 | |||||
Inventories | 540,801 | 389,459 | |||||
Investments in unconsolidated entities | 4,078 | 12,963 | |||||
Other assets | 190,544 | 164,848 | |||||
Investments in subsidiaries | 0 | 0 | |||||
Intercompany | 0 | 0 | |||||
Total assets | 896,065 | 631,175 | |||||
LIABILITIES AND EQUITY | |||||||
Accounts payable and other liabilities | 312,528 | 303,473 | |||||
Liabilities related to consolidated inventory not owned | 13,500 | ||||||
Senior notes and other debts payable | 417,550 | 51,892 | |||||
Intercompany | 1,877,083 | 1,698,901 | |||||
Total liabilities | 2,607,161 | 2,067,766 | |||||
Reportable Legal Entities | Non-Guarantor Subsidiaries | Financial Services | |||||||
Assets: | |||||||
Total assets | 2,231,461 | 2,547,167 | |||||
LIABILITIES AND EQUITY | |||||||
Total liabilities | 1,449,024 | 1,816,667 | |||||
Reportable Legal Entities | Non-Guarantor Subsidiaries | Multifamily | |||||||
Assets: | |||||||
Total assets | 1,046,196 | 874,219 | |||||
LIABILITIES AND EQUITY | |||||||
Total liabilities | 215,316 | 170,616 | |||||
Reportable Legal Entities | Non-Guarantor Subsidiaries | Lennar Other | |||||||
Assets: | |||||||
Total assets | 430,067 | 462,234 | |||||
LIABILITIES AND EQUITY | |||||||
Total liabilities | 30,039 | 67,508 | |||||
Consolidating Adjustments | |||||||
Assets: | |||||||
Total assets | (23,780,688) | (22,494,652) | |||||
LIABILITIES AND EQUITY | |||||||
Total liabilities | (13,205,169) | (11,843,335) | |||||
Stockholders’ equity | (10,575,519) | (10,651,317) | |||||
Noncontrolling interests | 0 | 0 | |||||
Total equity | (10,575,519) | (10,651,317) | |||||
Total liabilities and equity | (23,780,688) | (22,494,652) | |||||
Consolidating Adjustments | Homebuilding | |||||||
Assets: | |||||||
Cash and cash equivalents, restricted cash and receivables, net | 0 | 0 | |||||
Inventories | 0 | 0 | |||||
Investments in unconsolidated entities | 0 | 0 | |||||
Goodwill | 0 | 0 | |||||
Other assets | (37,094) | (26,955) | |||||
Investments in subsidiaries | (10,575,519) | (10,651,317) | |||||
Intercompany | (13,167,409) | (11,815,491) | |||||
Total assets | (23,780,022) | (22,493,763) | |||||
LIABILITIES AND EQUITY | |||||||
Accounts payable and other liabilities | (37,760) | (27,844) | |||||
Liabilities related to consolidated inventory not owned | 0 | 0 | |||||
Senior notes and other debts payable | 0 | 0 | |||||
Intercompany | (13,167,409) | (11,815,491) | |||||
Total liabilities | (13,205,169) | (11,843,335) | |||||
Consolidating Adjustments | Financial Services | |||||||
Assets: | |||||||
Total assets | (666) | (889) | |||||
LIABILITIES AND EQUITY | |||||||
Total liabilities | 0 | 0 | |||||
Consolidating Adjustments | Multifamily | |||||||
Assets: | |||||||
Total assets | 0 | 0 | |||||
LIABILITIES AND EQUITY | |||||||
Total liabilities | 0 | 0 | |||||
Consolidating Adjustments | Lennar Other | |||||||
Assets: | |||||||
Total assets | 0 | 0 | |||||
LIABILITIES AND EQUITY | |||||||
Total liabilities | $ 0 | $ 0 | |||||
[1] | Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations , ("ASC 810") the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities ("VIEs") and liabilities of consolidated VIEs as to which neither Lennar Corporation, or any of its subsidiaries, has any obligations. As of May 31, 2019 , total assets include $1.4 billion related to consolidated VIEs of which $52.9 million is included in Homebuilding cash and cash equivalents, $103.3 million in Homebuilding receivables, net, $240.1 million in Homebuilding finished homes and construction in progress, $301.0 million in Homebuilding land and land under development, $394.7 million in Homebuilding consolidated inventory not owned, $4.1 million in Homebuilding investments in unconsolidated entities, $10.4 million in Homebuilding other assets, $187.2 million in Financial Services assets, $50.8 million in Multifamily assets and $7.2 million in Lennar Other assets. As of November 30, 2018 , total assets include $666.2 million related to consolidated VIEs of which $57.6 million is included in Homebuilding cash and cash equivalents, $0.2 million in Homebuilding receivables, net, $81.7 million in Homebuilding finished homes and construction in progress, $293.1 million in Homebuilding land and land under development, $209.0 million in Homebuilding consolidated inventory not owned, $3.8 million in Homebuilding investments in unconsolidated entities, $10.5 million in Homebuilding other assets and $10.3 million in Lennar Other assets. | ||||||
[2] | Under certain provisions of ASC 810, the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated VIEs and liabilities of consolidated VIEs as to which neither Lennar Corporation, or any of its subsidiaries, has any obligations. As of May 31, 2019 , total liabilities include $928.9 million related to consolidated VIEs as to which there was no recourse against the Company, of which $17.3 million is included in Homebuilding accounts payable, $370.7 million in Homebuilding senior notes and other debts payable, $346.3 million in Homebuilding liabilities related to consolidated inventory not owned, $1.7 million in Homebuilding other liabilities, $190.6 million in Financial Services liabilities, $1.0 million in Multifamily liabilities and $1.3 million in Lennar Other liabilities. As of November 30, 2018 , total liabilities include $242.5 million related to consolidated VIEs as to which there was no recourse against the Company, of which $11.4 million is included in Homebuilding accounts payable, $51.9 million in Homebuilding senior notes and other debt payable, $175.6 million in Homebuilding liabilities related to consolidated inventory not owned, $2.6 million in Homebuilding other liabilities and $1.0 million in Lennar Other liabilities. |
Supplemental Financial Inform_5
Supplemental Financial Information (Condensed Consolidating Statement of Operations and Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | ||
Revenues: | |||||
Revenues | $ 5,562,890 | $ 5,459,061 | $ 9,430,972 | $ 8,439,852 | |
Cost and expenses: | |||||
Acquisition and integration costs related to CalAtlantic | 0 | 23,875 | 0 | 128,070 | |
Corporate general and administrative | 76,113 | 84,915 | 155,456 | 152,725 | |
Total costs and expenses | 4,963,281 | 5,077,732 | 8,508,598 | 7,947,801 | |
Equity in earnings (loss) from unconsolidated entities | (5,908) | (3,740) | |||
Earnings before income taxes | 559,399 | 390,810 | 878,523 | 660,238 | |
Benefit (provision) for income taxes | [1] | (140,530) | (75,961) | (220,230) | (208,572) |
Equity in earnings from subsidiaries | 0 | 0 | 0 | ||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | 418,869 | 314,849 | 658,293 | 451,666 | |
Less: Net earnings (loss) attributable to noncontrolling interests | (2,603) | 4,592 | (3,089) | 5,194 | |
Net earnings attributable to Lennar | 421,472 | 310,257 | 661,382 | 446,472 | |
Other comprehensive income (loss), net of tax: | |||||
Net unrealized gain (loss) on securities available-for-sale | 561 | (589) | 769 | (1,247) | |
Reclassification adjustments for gains included in earnings, net of tax | (176) | (126) | (176) | (126) | |
Total other comprehensive income (loss), net of tax | 385 | (715) | 593 | (1,373) | |
Total comprehensive income attributable to Lennar | 421,857 | 309,542 | 661,975 | 445,099 | |
Total comprehensive income (loss) attributable to noncontrolling interests | (2,603) | 4,592 | (3,089) | 5,194 | |
Homebuilding | |||||
Revenues: | |||||
Revenues | 5,195,599 | 5,063,997 | 8,819,320 | 7,726,090 | |
Cost and expenses: | |||||
Cost and expenses | 4,587,259 | 4,636,063 | 7,826,094 | 7,040,096 | |
Equity in earnings (loss) from unconsolidated entities | 19,614 | (12,670) | 5,858 | (26,798) | |
Other income (expense), net | (46,165) | 9,879 | (47,700) | 179,874 | |
Financial Services | |||||
Revenues: | |||||
Revenues | 204,216 | 249,710 | 347,527 | 445,797 | |
Cost and expenses: | |||||
Cost and expenses | 147,999 | 193,935 | 272,338 | 364,159 | |
Multifamily | |||||
Revenues: | |||||
Revenues | 147,412 | 117,693 | 244,806 | 210,949 | |
Cost and expenses: | |||||
Cost and expenses | 148,716 | 117,186 | 249,894 | 214,385 | |
Equity in earnings (loss) from unconsolidated entities | (3,018) | 14,281 | 7,563 | 17,023 | |
Lennar Other | |||||
Revenues: | |||||
Revenues | 15,663 | 27,661 | 19,319 | 57,016 | |
Cost and expenses: | |||||
Cost and expenses | 3,194 | 21,758 | 4,816 | 48,366 | |
Equity in earnings (loss) from unconsolidated entities | (4,978) | 4,560 | 3,352 | 13,515 | |
Other income (expense), net | (5,663) | (6,569) | (12,924) | (15,427) | |
Earnings before income taxes | 660,238 | ||||
Reportable Legal Entities | Lennar Corporation | |||||
Revenues: | |||||
Revenues | 0 | 0 | 0 | 0 | |
Cost and expenses: | |||||
Acquisition and integration costs related to CalAtlantic | 0 | 0 | |||
Corporate general and administrative | 74,321 | 82,962 | 151,850 | 148,885 | |
Total costs and expenses | 74,321 | 82,962 | 151,850 | 148,885 | |
Earnings before income taxes | (74,543) | (78,984) | (152,480) | ||
Benefit (provision) for income taxes | 18,653 | 13,957 | 38,090 | 45,522 | |
Equity in earnings from subsidiaries | 477,362 | 375,284 | 775,772 | 543,922 | |
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | 421,472 | 310,257 | 661,382 | 446,472 | |
Less: Net earnings (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Net earnings attributable to Lennar | 421,472 | 310,257 | 661,382 | 446,472 | |
Other comprehensive income (loss), net of tax: | |||||
Net unrealized gain (loss) on securities available-for-sale | 0 | 0 | 0 | 0 | |
Reclassification adjustments for gains included in earnings, net of tax | 0 | 0 | 0 | 0 | |
Total other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 | |
Total comprehensive income attributable to Lennar | 421,472 | 310,257 | 661,382 | 446,472 | |
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Reportable Legal Entities | Lennar Corporation | Homebuilding | |||||
Revenues: | |||||
Revenues | 0 | 0 | 0 | 0 | |
Cost and expenses: | |||||
Cost and expenses | 0 | 0 | 0 | 0 | |
Equity in earnings (loss) from unconsolidated entities | 0 | 0 | 0 | 0 | |
Other income (expense), net | (222) | 3,978 | (630) | 5,913 | |
Reportable Legal Entities | Lennar Corporation | Financial Services | |||||
Revenues: | |||||
Revenues | 0 | 0 | 0 | 0 | |
Cost and expenses: | |||||
Cost and expenses | 0 | 0 | 0 | 0 | |
Reportable Legal Entities | Lennar Corporation | Multifamily | |||||
Revenues: | |||||
Revenues | 0 | 0 | 0 | 0 | |
Cost and expenses: | |||||
Cost and expenses | 0 | 0 | 0 | 0 | |
Equity in earnings (loss) from unconsolidated entities | 0 | 0 | 0 | 0 | |
Reportable Legal Entities | Lennar Corporation | Lennar Other | |||||
Revenues: | |||||
Revenues | 0 | 0 | 0 | 0 | |
Cost and expenses: | |||||
Cost and expenses | 0 | 0 | 0 | 0 | |
Equity in earnings (loss) from unconsolidated entities | 0 | 0 | 0 | 0 | |
Other income (expense), net | 0 | 0 | 0 | 0 | |
Earnings before income taxes | (142,972) | ||||
Reportable Legal Entities | Guarantor Subsidiaries | |||||
Revenues: | |||||
Revenues | 5,211,642 | 5,123,026 | 8,874,600 | 7,849,232 | |
Cost and expenses: | |||||
Acquisition and integration costs related to CalAtlantic | 23,875 | 128,070 | |||
Corporate general and administrative | 527 | 605 | 1,076 | 1,209 | |
Total costs and expenses | 4,582,591 | 4,711,666 | 7,847,447 | 7,284,745 | |
Earnings before income taxes | 595,799 | 405,849 | 974,208 | ||
Benefit (provision) for income taxes | (148,736) | (74,781) | (242,575) | (225,224) | |
Equity in earnings from subsidiaries | 28,703 | 28,718 | 33,476 | 38,918 | |
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | 475,766 | 359,786 | 765,109 | 526,835 | |
Less: Net earnings (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Net earnings attributable to Lennar | 475,766 | 359,786 | 765,109 | 526,835 | |
Other comprehensive income (loss), net of tax: | |||||
Net unrealized gain (loss) on securities available-for-sale | 0 | 0 | 0 | 0 | |
Reclassification adjustments for gains included in earnings, net of tax | 0 | 0 | 0 | 0 | |
Total other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 | |
Total comprehensive income attributable to Lennar | 475,766 | 359,786 | 765,109 | 526,835 | |
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Reportable Legal Entities | Guarantor Subsidiaries | Homebuilding | |||||
Revenues: | |||||
Revenues | 5,175,289 | 5,022,769 | 8,789,330 | 7,675,963 | |
Cost and expenses: | |||||
Cost and expenses | 4,561,235 | 4,597,434 | 7,787,164 | 6,991,238 | |
Equity in earnings (loss) from unconsolidated entities | 19,537 | (12,789) | 5,586 | (26,761) | |
Other income (expense), net | (48,550) | 6,889 | (50,946) | 175,252 | |
Reportable Legal Entities | Guarantor Subsidiaries | Financial Services | |||||
Revenues: | |||||
Revenues | 36,353 | 100,257 | 85,270 | 173,269 | |
Cost and expenses: | |||||
Cost and expenses | 20,829 | 89,752 | 59,207 | 164,228 | |
Reportable Legal Entities | Guarantor Subsidiaries | Multifamily | |||||
Revenues: | |||||
Revenues | 0 | 0 | 0 | 0 | |
Cost and expenses: | |||||
Cost and expenses | 0 | 0 | 0 | 0 | |
Equity in earnings (loss) from unconsolidated entities | 0 | 0 | 0 | 0 | |
Reportable Legal Entities | Guarantor Subsidiaries | Lennar Other | |||||
Revenues: | |||||
Revenues | 0 | 0 | 0 | 0 | |
Cost and expenses: | |||||
Cost and expenses | 0 | 0 | 0 | 0 | |
Equity in earnings (loss) from unconsolidated entities | (4,239) | 444 | (7,585) | 285 | |
Other income (expense), net | 0 | (55) | 0 | (122) | |
Earnings before income taxes | 713,141 | ||||
Reportable Legal Entities | Non-Guarantor Subsidiaries | |||||
Revenues: | |||||
Revenues | 356,114 | 341,055 | 566,093 | 600,614 | |
Cost and expenses: | |||||
Acquisition and integration costs related to CalAtlantic | 0 | 0 | |||
Corporate general and administrative | 0 | 0 | 0 | 0 | |
Total costs and expenses | 311,014 | 292,092 | 518,389 | 530,059 | |
Earnings before income taxes | 38,143 | 63,945 | 56,795 | ||
Benefit (provision) for income taxes | (10,447) | (15,137) | (15,745) | (28,870) | |
Equity in earnings from subsidiaries | 0 | 0 | 0 | ||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | 27,696 | 48,808 | 41,050 | 61,199 | |
Less: Net earnings (loss) attributable to noncontrolling interests | (2,603) | 4,592 | (3,089) | 5,194 | |
Net earnings attributable to Lennar | 30,299 | 44,216 | 44,139 | 56,005 | |
Other comprehensive income (loss), net of tax: | |||||
Net unrealized gain (loss) on securities available-for-sale | 561 | (589) | 769 | (1,247) | |
Reclassification adjustments for gains included in earnings, net of tax | (176) | (126) | (176) | (126) | |
Total other comprehensive income (loss), net of tax | 385 | (715) | 593 | (1,373) | |
Total comprehensive income attributable to Lennar | 30,684 | 43,501 | 44,732 | 54,632 | |
Total comprehensive income (loss) attributable to noncontrolling interests | (2,603) | 4,592 | (3,089) | 5,194 | |
Reportable Legal Entities | Non-Guarantor Subsidiaries | Homebuilding | |||||
Revenues: | |||||
Revenues | 20,310 | 41,228 | 29,990 | 50,127 | |
Cost and expenses: | |||||
Cost and expenses | 19,594 | 39,352 | 31,901 | 51,615 | |
Equity in earnings (loss) from unconsolidated entities | 77 | 119 | 272 | (37) | |
Other income (expense), net | 2,386 | 2,980 | 3,243 | 4,603 | |
Reportable Legal Entities | Non-Guarantor Subsidiaries | Financial Services | |||||
Revenues: | |||||
Revenues | 172,729 | 154,473 | 271,978 | 282,522 | |
Cost and expenses: | |||||
Cost and expenses | 139,510 | 110,427 | 231,778 | 212,324 | |
Reportable Legal Entities | Non-Guarantor Subsidiaries | Multifamily | |||||
Revenues: | |||||
Revenues | 147,412 | 117,693 | 244,806 | 210,949 | |
Cost and expenses: | |||||
Cost and expenses | 148,716 | 117,186 | 249,894 | 214,385 | |
Equity in earnings (loss) from unconsolidated entities | (3,018) | 14,281 | 7,563 | 17,023 | |
Reportable Legal Entities | Non-Guarantor Subsidiaries | Lennar Other | |||||
Revenues: | |||||
Revenues | 15,663 | 27,661 | 19,319 | 57,016 | |
Cost and expenses: | |||||
Cost and expenses | 3,194 | 25,127 | 4,816 | 51,735 | |
Equity in earnings (loss) from unconsolidated entities | (739) | 4,116 | 10,937 | 13,230 | |
Other income (expense), net | (5,663) | (6,514) | (12,924) | (15,305) | |
Earnings before income taxes | 90,069 | ||||
Consolidating Adjustments | |||||
Revenues: | |||||
Revenues | (4,866) | (5,020) | (9,721) | (9,994) | |
Cost and expenses: | |||||
Acquisition and integration costs related to CalAtlantic | 0 | 0 | |||
Corporate general and administrative | 1,265 | 1,348 | 2,530 | 2,631 | |
Total costs and expenses | (4,645) | (8,988) | (9,088) | (15,888) | |
Earnings before income taxes | 0 | 0 | 0 | ||
Benefit (provision) for income taxes | 0 | 0 | 0 | 0 | |
Equity in earnings from subsidiaries | (506,065) | (404,002) | (809,248) | (582,840) | |
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | (506,065) | (404,002) | (809,248) | (582,840) | |
Less: Net earnings (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Net earnings attributable to Lennar | (506,065) | (404,002) | (809,248) | (582,840) | |
Other comprehensive income (loss), net of tax: | |||||
Net unrealized gain (loss) on securities available-for-sale | 0 | 0 | 0 | 0 | |
Reclassification adjustments for gains included in earnings, net of tax | 0 | 0 | 0 | 0 | |
Total other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 | |
Total comprehensive income attributable to Lennar | (506,065) | (404,002) | (809,248) | (582,840) | |
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Consolidating Adjustments | Homebuilding | |||||
Revenues: | |||||
Revenues | 0 | 0 | 0 | 0 | |
Cost and expenses: | |||||
Cost and expenses | 6,430 | (723) | 7,029 | (2,757) | |
Equity in earnings (loss) from unconsolidated entities | 0 | 0 | 0 | 0 | |
Other income (expense), net | 221 | (3,968) | 633 | (5,894) | |
Consolidating Adjustments | Financial Services | |||||
Revenues: | |||||
Revenues | (4,866) | (5,020) | (9,721) | (9,994) | |
Cost and expenses: | |||||
Cost and expenses | (12,340) | (6,244) | (18,647) | (12,393) | |
Consolidating Adjustments | Multifamily | |||||
Revenues: | |||||
Revenues | 0 | 0 | 0 | 0 | |
Cost and expenses: | |||||
Cost and expenses | 0 | 0 | 0 | 0 | |
Equity in earnings (loss) from unconsolidated entities | 0 | 0 | 0 | 0 | |
Consolidating Adjustments | Lennar Other | |||||
Revenues: | |||||
Revenues | 0 | 0 | 0 | 0 | |
Cost and expenses: | |||||
Cost and expenses | 0 | (3,369) | 0 | (3,369) | |
Equity in earnings (loss) from unconsolidated entities | 0 | 0 | 0 | 0 | |
Other income (expense), net | $ 0 | $ 0 | $ 0 | 0 | |
Earnings before income taxes | $ 0 | ||||
[1] | Provision for income taxes for the six months ended May 31, 2018 includes a non-cash one-time write down of deferred tax assets of $68.6 million resulting from the Tax Cuts and Jobs Act enacted in December 2017. |
Supplemental Financial Inform_6
Supplemental Financial Information (Condensed Consolidating Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |
Cash flows from operating activities: | ||||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | $ 418,869 | $ 314,849 | $ 658,293 | $ 451,666 |
Distributions of earnings from guarantor and non-guarantor subsidiaries | 0 | 0 | ||
Other adjustments to reconcile net earnings (including net loss attributable to noncontrolling interests) to net cash provided by operating activities | (1,088,183) | (432,152) | ||
Net cash (used in) provided by operating activities | (429,890) | 19,514 | ||
Cash flows from investing activities: | ||||
Investments in and contributions to unconsolidated entities, net of distributions of capital | (87,336) | 9,970 | ||
Proceeds from sales of real estate owned | 4,210 | 21,658 | ||
Proceeds from sale of investment in unconsolidated entity | 17,790 | 175,179 | ||
Purchases of commercial mortgage-backed securities bonds | 0 | (31,068) | ||
Proceeds from sale of investment in unconsolidated entity | 17,790 | |||
Proceeds from sale of Financial Services' businesses | 24,446 | 0 | ||
Acquisitions, net of cash and restricted cash acquired | 0 | (1,077,964) | ||
Other | (50,696) | (49,089) | ||
Distributions of capital from guarantor and non-guarantor subsidiaries | 0 | |||
Intercompany | 0 | 0 | ||
Net cash used in investing activities | (91,586) | (951,314) | ||
Cash flows from financing activities: | ||||
Debt issuance costs | 0 | (12,101) | ||
Redemption of senior notes | 0 | (575,000) | ||
Net payments on other borrowings, other liabilities, Lennar Other senior notes and other notes payable | (97,395) | (348,045) | ||
Net repayments related to noncontrolling interests | (14,380) | (26,530) | ||
Common stock: | ||||
Issuances | 634 | 3,184 | ||
Repurchases | (101,229) | (28,526) | ||
Dividends | (25,877) | (22,780) | ||
Intercompany | 0 | 0 | ||
Net cash used in financing activities | (53,431) | (565,933) | ||
Net decrease in cash and cash equivalents and restricted cash | (574,907) | (1,497,733) | ||
Cash and cash equivalents and restricted cash at beginning of period | 1,595,978 | 2,694,084 | ||
Cash and cash equivalents and restricted cash at end of period | 1,021,071 | 1,196,351 | 1,021,071 | 1,196,351 |
Unsecured Revolving Credit Facility | ||||
Cash flows from financing activities: | ||||
Net borrowings under credit facilities | 550,000 | 495,300 | ||
Warehouse Repurchase Facility | ||||
Cash flows from financing activities: | ||||
Net borrowings under credit facilities | (365,184) | 7,710 | ||
Reportable Legal Entities | Lennar Corporation | ||||
Cash flows from operating activities: | ||||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | 421,472 | 310,257 | 661,382 | 446,472 |
Distributions of earnings from guarantor and non-guarantor subsidiaries | 775,772 | 543,922 | ||
Other adjustments to reconcile net earnings (including net loss attributable to noncontrolling interests) to net cash provided by operating activities | (819,869) | (712,549) | ||
Net cash (used in) provided by operating activities | 617,285 | 277,845 | ||
Cash flows from investing activities: | ||||
Investments in and contributions to unconsolidated entities, net of distributions of capital | 0 | 0 | ||
Proceeds from sales of real estate owned | 0 | 0 | ||
Proceeds from sale of investment in unconsolidated entity | 0 | |||
Purchases of commercial mortgage-backed securities bonds | 0 | |||
Proceeds from sale of investment in unconsolidated entity | 0 | |||
Proceeds from sale of Financial Services' businesses | 0 | |||
Acquisitions, net of cash and restricted cash acquired | (1,140,367) | |||
Other | (170) | (21,568) | ||
Distributions of capital from guarantor and non-guarantor subsidiaries | 65,000 | |||
Intercompany | (1,263,527) | (1,034,631) | ||
Net cash used in investing activities | (1,263,697) | (2,131,566) | ||
Cash flows from financing activities: | ||||
Redemption of senior notes | (484,332) | |||
Net payments on other borrowings, other liabilities, Lennar Other senior notes and other notes payable | 0 | 0 | ||
Net repayments related to noncontrolling interests | 0 | 0 | ||
Common stock: | ||||
Issuances | 634 | 3,184 | ||
Repurchases | (101,229) | (28,526) | ||
Dividends | (25,877) | (22,780) | ||
Intercompany | 0 | 0 | ||
Net cash used in financing activities | 423,528 | 408,437 | ||
Net decrease in cash and cash equivalents and restricted cash | (222,884) | (1,445,284) | ||
Cash and cash equivalents and restricted cash at beginning of period | 624,694 | 1,938,555 | ||
Cash and cash equivalents and restricted cash at end of period | 401,810 | 493,271 | 401,810 | 493,271 |
Reportable Legal Entities | Lennar Corporation | Unsecured Revolving Credit Facility | ||||
Cash flows from financing activities: | ||||
Net borrowings under credit facilities | 550,000 | 950,000 | ||
Reportable Legal Entities | Lennar Corporation | Warehouse Repurchase Facility | ||||
Cash flows from financing activities: | ||||
Net borrowings under credit facilities | 0 | 0 | ||
Reportable Legal Entities | Guarantor Subsidiaries | ||||
Cash flows from operating activities: | ||||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | 475,766 | 359,786 | 765,109 | 526,835 |
Distributions of earnings from guarantor and non-guarantor subsidiaries | 33,476 | 38,918 | ||
Other adjustments to reconcile net earnings (including net loss attributable to noncontrolling interests) to net cash provided by operating activities | (1,222,713) | (107,511) | ||
Net cash (used in) provided by operating activities | (424,128) | 458,242 | ||
Cash flows from investing activities: | ||||
Investments in and contributions to unconsolidated entities, net of distributions of capital | (99,052) | 24,013 | ||
Proceeds from sales of real estate owned | 0 | 0 | ||
Proceeds from sale of investment in unconsolidated entity | 175,179 | |||
Purchases of commercial mortgage-backed securities bonds | 0 | |||
Proceeds from sale of investment in unconsolidated entity | 0 | |||
Proceeds from sale of Financial Services' businesses | 21,317 | |||
Acquisitions, net of cash and restricted cash acquired | 23,035 | |||
Other | (30,185) | (5,933) | ||
Distributions of capital from guarantor and non-guarantor subsidiaries | 20,000 | |||
Intercompany | 0 | 0 | ||
Net cash used in investing activities | (107,920) | 236,294 | ||
Cash flows from financing activities: | ||||
Redemption of senior notes | (90,668) | |||
Net payments on other borrowings, other liabilities, Lennar Other senior notes and other notes payable | (101,052) | (52,999) | ||
Net repayments related to noncontrolling interests | 0 | 0 | ||
Common stock: | ||||
Issuances | 0 | 0 | ||
Repurchases | 0 | 0 | ||
Dividends | (765,109) | (591,835) | ||
Intercompany | 1,057,135 | 624,070 | ||
Net cash used in financing activities | 191,144 | (625,331) | ||
Net decrease in cash and cash equivalents and restricted cash | (340,904) | 69,205 | ||
Cash and cash equivalents and restricted cash at beginning of period | 721,603 | 366,946 | ||
Cash and cash equivalents and restricted cash at end of period | 380,699 | 436,151 | 380,699 | 436,151 |
Reportable Legal Entities | Guarantor Subsidiaries | Unsecured Revolving Credit Facility | ||||
Cash flows from financing activities: | ||||
Net borrowings under credit facilities | 0 | (454,700) | ||
Reportable Legal Entities | Guarantor Subsidiaries | Warehouse Repurchase Facility | ||||
Cash flows from financing activities: | ||||
Net borrowings under credit facilities | 170 | (54) | ||
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
Cash flows from operating activities: | ||||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | 27,696 | 48,808 | 41,050 | 61,199 |
Distributions of earnings from guarantor and non-guarantor subsidiaries | 0 | 0 | ||
Other adjustments to reconcile net earnings (including net loss attributable to noncontrolling interests) to net cash provided by operating activities | 145,151 | (194,932) | ||
Net cash (used in) provided by operating activities | 186,201 | (133,733) | ||
Cash flows from investing activities: | ||||
Investments in and contributions to unconsolidated entities, net of distributions of capital | 11,716 | (14,043) | ||
Proceeds from sales of real estate owned | 4,210 | 21,658 | ||
Proceeds from sale of investment in unconsolidated entity | 0 | |||
Purchases of commercial mortgage-backed securities bonds | (31,068) | |||
Proceeds from sale of investment in unconsolidated entity | 17,790 | |||
Proceeds from sale of Financial Services' businesses | 3,129 | |||
Acquisitions, net of cash and restricted cash acquired | 39,368 | |||
Other | (20,341) | (21,588) | ||
Distributions of capital from guarantor and non-guarantor subsidiaries | 0 | |||
Intercompany | 0 | 0 | ||
Net cash used in investing activities | 16,504 | (5,673) | ||
Cash flows from financing activities: | ||||
Redemption of senior notes | 0 | |||
Net payments on other borrowings, other liabilities, Lennar Other senior notes and other notes payable | 3,657 | (295,046) | ||
Net repayments related to noncontrolling interests | (14,380) | (26,530) | ||
Common stock: | ||||
Issuances | 0 | 0 | ||
Repurchases | 0 | 0 | ||
Dividends | (44,139) | (76,005) | ||
Intercompany | 206,392 | 410,561 | ||
Net cash used in financing activities | (213,824) | 17,752 | ||
Net decrease in cash and cash equivalents and restricted cash | (11,119) | (121,654) | ||
Cash and cash equivalents and restricted cash at beginning of period | 249,681 | 388,583 | ||
Cash and cash equivalents and restricted cash at end of period | 238,562 | 266,929 | 238,562 | 266,929 |
Reportable Legal Entities | Non-Guarantor Subsidiaries | Unsecured Revolving Credit Facility | ||||
Cash flows from financing activities: | ||||
Net borrowings under credit facilities | 0 | 0 | ||
Reportable Legal Entities | Non-Guarantor Subsidiaries | Warehouse Repurchase Facility | ||||
Cash flows from financing activities: | ||||
Net borrowings under credit facilities | (365,354) | 7,764 | ||
Consolidating Adjustments | ||||
Cash flows from operating activities: | ||||
Net earnings (including net earnings (loss) attributable to noncontrolling interests) | (506,065) | (404,002) | (809,248) | (582,840) |
Distributions of earnings from guarantor and non-guarantor subsidiaries | (809,248) | (582,840) | ||
Other adjustments to reconcile net earnings (including net loss attributable to noncontrolling interests) to net cash provided by operating activities | 809,248 | 582,840 | ||
Net cash (used in) provided by operating activities | (809,248) | (582,840) | ||
Cash flows from investing activities: | ||||
Investments in and contributions to unconsolidated entities, net of distributions of capital | 0 | 0 | ||
Proceeds from sales of real estate owned | 0 | 0 | ||
Proceeds from sale of investment in unconsolidated entity | 0 | |||
Purchases of commercial mortgage-backed securities bonds | 0 | |||
Proceeds from sale of investment in unconsolidated entity | 0 | |||
Proceeds from sale of Financial Services' businesses | 0 | |||
Acquisitions, net of cash and restricted cash acquired | 0 | |||
Other | 0 | 0 | ||
Distributions of capital from guarantor and non-guarantor subsidiaries | (85,000) | |||
Intercompany | 1,263,527 | 1,034,631 | ||
Net cash used in investing activities | 1,263,527 | 949,631 | ||
Cash flows from financing activities: | ||||
Redemption of senior notes | 0 | |||
Net payments on other borrowings, other liabilities, Lennar Other senior notes and other notes payable | 0 | 0 | ||
Net repayments related to noncontrolling interests | 0 | 0 | ||
Common stock: | ||||
Issuances | 0 | 0 | ||
Repurchases | 0 | 0 | ||
Dividends | 809,248 | 667,840 | ||
Intercompany | (1,263,527) | (1,034,631) | ||
Net cash used in financing activities | (454,279) | (366,791) | ||
Net decrease in cash and cash equivalents and restricted cash | 0 | 0 | ||
Cash and cash equivalents and restricted cash at beginning of period | 0 | 0 | ||
Cash and cash equivalents and restricted cash at end of period | $ 0 | $ 0 | 0 | 0 |
Consolidating Adjustments | Unsecured Revolving Credit Facility | ||||
Cash flows from financing activities: | ||||
Net borrowings under credit facilities | 0 | 0 | ||
Consolidating Adjustments | Warehouse Repurchase Facility | ||||
Cash flows from financing activities: | ||||
Net borrowings under credit facilities | $ 0 | 0 | ||
Senior Notes | ||||
Cash flows from financing activities: | ||||
Debt issuance costs | (12,101) | |||
Senior Notes | Reportable Legal Entities | Lennar Corporation | ||||
Cash flows from financing activities: | ||||
Debt issuance costs | (9,109) | |||
Senior Notes | Reportable Legal Entities | Guarantor Subsidiaries | ||||
Cash flows from financing activities: | ||||
Debt issuance costs | 0 | |||
Senior Notes | Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
Cash flows from financing activities: | ||||
Debt issuance costs | (2,992) | |||
Senior Notes | Consolidating Adjustments | ||||
Cash flows from financing activities: | ||||
Debt issuance costs | $ 0 |