Schedule of Segment Reporting Information |
Financial information relating to the Company’s operations was as follows: | | | | | | | | | | | | November 30, | (In thousands) | 2017 | | 2016 | | 2015 | Assets: | | | | | | Homebuilding East (1) | $ | 4,754,581 |
| | 3,512,990 |
| | 3,140,604 |
| Homebuilding Central | 2,037,905 |
| | 1,993,403 |
| | 1,902,581 |
| Homebuilding West | 5,165,218 |
| | 4,318,924 |
| | 4,157,616 |
| Homebuilding Other | 960,541 |
| | 907,523 |
| | 858,000 |
| Lennar Financial Services | 1,689,508 |
| | 1,754,672 |
| | 1,425,837 |
| Rialto | 1,153,840 |
| | 1,276,210 |
| | 1,505,500 |
| Lennar Multifamily | 710,725 |
| | 526,131 |
| | 415,352 |
| Corporate and unallocated | 2,272,716 |
| | 1,071,928 |
| | 1,014,019 |
| Total assets | $ | 18,745,034 |
| | 15,361,781 |
| | 14,419,509 |
| Lennar Homebuilding investments in unconsolidated entities: | | | | | | Homebuilding East | $ | 68,670 |
| | 62,900 |
| | 40,573 |
| Homebuilding Central | 25,220 |
| | 36,031 |
| | 35,925 |
| Homebuilding West | 791,995 |
| | 696,471 |
| | 649,170 |
| Homebuilding Other | 14,884 |
| | 16,321 |
| | 15,883 |
| Total Lennar Homebuilding investments in unconsolidated entities | $ | 900,769 |
| | 811,723 |
| | 741,551 |
| Rialto investments in unconsolidated entities | $ | 265,418 |
| | 245,741 |
| | 224,869 |
| Lennar Multifamily investments in unconsolidated entities | $ | 407,544 |
| | 318,559 |
| | 250,876 |
| Lennar Homebuilding goodwill (2) | $ | 136,566 |
| | — |
| | — |
| Lennar Financial Services goodwill (2) | $ | 59,838 |
| | 39,838 |
| | 38,854 |
| Rialto goodwill | $ | 5,396 |
| | 5,396 |
| | 5,396 |
|
| | (1) | Homebuilding East segment includes the provisional fair values of homebuilding assets acquired as part of the WCI acquisition. |
| | (2) | In connection with the WCI acquisition, the Company allocated $136.6 million of goodwill to the Lennar Homebuilding East reportable segment and $20.0 million to the Lennar Financial Services segment. These amounts are provisional pending completion of the fair value analysis of acquired assets and liabilities. |
| | | | | | | | | | | | Years Ended November 30, | (In thousands) | 2017 | | 2016 | | 2015 | Revenues: | | | | | | Homebuilding East | $ | 4,612,565 |
| | 3,941,336 |
| | 3,563,678 |
| Homebuilding Central | 2,509,292 |
| | 2,283,579 |
| | 1,944,312 |
| Homebuilding West | 3,197,174 |
| | 2,757,658 |
| | 2,365,519 |
| Homebuilding Other | 881,211 |
| | 758,764 |
| | 593,436 |
| Lennar Financial Services | 770,109 |
| | 687,255 |
| | 620,527 |
| Rialto | 281,243 |
| | 233,966 |
| | 221,923 |
| Lennar Multifamily | 394,771 |
| | 287,441 |
| | 164,613 |
| Total revenues (1) | $ | 12,646,365 |
| | 10,949,999 |
| | 9,474,008 |
| Operating earnings (loss): | | | | | | Homebuilding East (2) | $ | 483,684 |
| | 617,175 |
| | 580,863 |
| Homebuilding Central | 269,462 |
| | 245,975 |
| | 208,698 |
| Homebuilding West (3) | 403,935 |
| | 396,346 |
| | 435,818 |
| Homebuilding Other | 111,958 |
| | 85,436 |
| | 46,262 |
| Lennar Financial Services | 155,524 |
| | 163,617 |
| | 127,795 |
| Rialto (4) | (22,495 | ) | | (16,692 | ) | | 33,595 |
| Lennar Multifamily (5) | 73,432 |
| | 71,174 |
| | (7,171 | ) | Total operating earnings | 1,475,500 |
| | 1,563,031 |
| | 1,425,860 |
| Corporate general and administrative expenses | 285,889 |
| | 232,562 |
| | 216,244 |
| Earnings before income taxes | $ | 1,189,611 |
| | 1,330,469 |
| | 1,209,616 |
|
| | (1) | Total revenues were net of sales incentives of $665.7 million ($22,700 per home delivered) for the year ended November 30, 2017, $596.3 million ($22,500 per home delivered) for the year ended November 30, 2016 and $518.1 million ($21,400 per home delivered) for the year ended November 30, 2015. |
| | (2) | Homebuilding East operating earnings for the year ended November 30, 2017 included a $140 million loss due to litigation (see Note 17). |
| | (3) | For the years ended November 30, 2017 and 2016, Homebuilding West's operating earnings included an equity in loss from unconsolidated entities of $55.2 million and $49.7 million, respectively, refer to the following table for additional details. |
| | (4) | For the year ended November 30, 2017, Rialto's operating loss included $96.2 million of gross REO and loan impairments ($44.7 million net of noncontrolling interests) as Rialto liquidated most of the remaining assets of the FDIC portfolio. For the year ended November 30, 2016, Rialto's operating loss included a $16.0 million write-off of uncollectible receivables related to a hospital, which was acquired through the resolution of one of Rialto's loans from a 2010 portfolio. |
| | (5) | For the years ended November 30, 2017, 2016 and 2015, Lennar Multifamily's operating earnings included $85.7 million, $85.5 million and $19.5 million of equity in earnings from unconsolidated entities primarily as a result of $96.7 million, $91.0 million and $22.2 million, respectively, share of gains from the sale of seven, seven and two operating properties, respectively, by its unconsolidated entities. |
| | | | | | | | | | | | Years Ended November 30, | (In thousands) | 2017 | | 2016 | | 2015 | Lennar Homebuilding interest expense: | | | | | | Homebuilding East | $ | 100,288 |
| | 92,541 |
| | 94,425 |
| Homebuilding Central | 55,212 |
| | 48,879 |
| | 41,280 |
| Homebuilding West | 103,100 |
| | 87,293 |
| | 70,397 |
| Homebuilding Other | 19,209 |
| | 16,348 |
| | 14,045 |
| Total Lennar Homebuilding interest expense | $ | 277,809 |
| | 245,061 |
| | 220,147 |
| Lennar Financial Services interest income, net | $ | 13,331 |
| | 12,388 |
| | 13,547 |
| Rialto interest expense | $ | 42,004 |
| | 40,303 |
| | 43,127 |
| Depreciation and amortization: | | | | | | Homebuilding East | $ | 19,922 |
| | 18,713 |
| | 16,877 |
| Homebuilding Central | 11,007 |
| | 10,328 |
| | 9,881 |
| Homebuilding West | 22,741 |
| | 19,437 |
| | 17,683 |
| Homebuilding Other | 4,772 |
| | 4,562 |
| | 4,477 |
| Lennar Financial Services | 9,992 |
| | 7,667 |
| | 6,100 |
| Rialto | 5,194 |
| | 7,590 |
| | 7,758 |
| Lennar Multifamily | 2,910 |
| | 2,472 |
| | 1,110 |
| Corporate and unallocated | 51,142 |
| | 34,966 |
| | 23,522 |
| Total depreciation and amortization | $ | 127,680 |
| | 105,735 |
| | 87,408 |
| Net additions to (disposals of) operating properties and equipment: | | | | | | Homebuilding East | $ | 2 |
| | (10,379 | ) | | 316 |
| Homebuilding Central | (48 | ) | | 2,385 |
| | (18 | ) | Homebuilding West (1) | 13,912 |
| | 24,438 |
| | (11,482 | ) | Homebuilding Other (2) | 29,927 |
| | 26,727 |
| | (72,472 | ) | Lennar Financial Services | 11,185 |
| | 6,218 |
| | 3,306 |
| Rialto | 4,115 |
| | 1,908 |
| | 9,382 |
| Lennar Multifamily | 12,657 |
| | 1,666 |
| | 2,147 |
| Corporate and unallocated | 40,023 |
| | 12,645 |
| | 27,466 |
| Total net additions (disposals of) operating properties and equipment | $ | 111,773 |
| | 65,608 |
| | (41,355 | ) | Lennar Homebuilding equity in earnings (loss) from unconsolidated entities: | | | | | | Homebuilding East | $ | 1,413 |
| | (230 | ) | | 118 |
| Homebuilding Central | (7,447 | ) | | 401 |
| | 75 |
| Homebuilding West (3) | (55,181 | ) | | (49,731 | ) | | 62,960 |
| Homebuilding Other | (493 | ) | | 285 |
| | 220 |
| Total Lennar Homebuilding equity in earnings (loss) from unconsolidated entities | $ | (61,708 | ) | | (49,275 | ) | | 63,373 |
| Rialto equity in earnings from unconsolidated entities | $ | 25,447 |
| | 18,961 |
| | 22,293 |
| Lennar Multifamily equity in earnings from unconsolidated entities | $ | 85,739 |
| | 85,519 |
| | 19,518 |
|
| | (1) | For the year ended November 30, 2017, net disposals of operating properties and equipment included the sale of an operating property with a basis of $47.0 million. For the year ended November 30, 2015, net disposals of operating properties and equipment included the sale of an operating property with a basis of $59.4 million. |
| | (2) | For the year ended November 30, 2015, net disposals of operating properties and equipment included the sale of an operating property with a basis of $73.3 million. |
| | (3) | For the year ended November 30, 2017, equity in loss included the Company's share of operational net losses from unconsolidated entities driven by general and administrative expenses and valuation adjustments, partially offset by profits from land sales. For the year ended November 30, 2016, equity in loss included the Company's share of costs associated with the FivePoint combination (described in Note 5) and operational net losses from the new FivePoint unconsolidated entity, totaling $42.6 million, partially offset by $12.7 million of equity in earnings primarily due to sales of homesites to third parties by one of the Company's unconsolidated entities. For the year ended November 30, 2015, equity in earnings included $82.8 million of equity in earnings from one of the Company's unconsolidated entities. |
The assets and liabilities related to the Lennar Financial Services segment were as follows: | | | | | | | | | November 30, | (In thousands) | 2017 | | 2016 | Assets: | | | | Cash and cash equivalents | $ | 117,410 |
| | 123,964 |
| Restricted cash | 12,006 |
| | 17,053 |
| Receivables, net (1) | 313,252 |
| | 409,528 |
| Loans held-for-sale (2) | 937,516 |
| | 939,405 |
| Loans held-for-investment, net | 44,193 |
| | 30,004 |
| Investments held-to-maturity | 52,327 |
| | 41,991 |
| Investments available-for-sale (3) | 57,439 |
| | 53,570 |
| Goodwill (4) | 59,838 |
| | 39,838 |
| Other (5) | 95,527 |
| | 99,319 |
| | $ | 1,689,508 |
| | 1,754,672 |
| Liabilities: | | | | Notes and other debts payable | $ | 937,431 |
| | 1,077,228 |
| Other (6) | 240,383 |
| | 241,055 |
| | $ | 1,177,814 |
| | 1,318,283 |
|
| | (2) | Loans held-for-sale related to unsold 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). |
| | (4) | As of November 30, 2017, goodwill included $20 million related to the WCI acquisition. The amount provided herein is provisional, pending completion of the fair value analysis of WCI's acquired assets and liabilities assumed. |
| | (5) | As of November 30, 2017 and 2016, other assets included mortgage loan commitments carried at fair value of $9.9 million and $7.4 million, respectively, and mortgage servicing rights carried at fair value of $31.2 million and $23.9 million, respectively. In addition, other assets also included forward contracts carried at fair value of $1.7 million and $26.5 million as of November 30, 2017 and November 30, 2016, respectively. |
| | (6) | As of November 30, 2017 and 2016, other liabilities included $57.7 million and $57.4 million, respectively, of certain of the Company’s self-insurance reserves related to construction defects, general liability and workers’ compensation. |
The assets and liabilities related to the Rialto segment were as follows: | | | | | | | | | November 30, | (In thousands) | 2017 | | 2016 | Assets: | | | | Cash and cash equivalents | $ | 241,861 |
| | 148,827 |
| Restricted cash | 22,466 |
| | 9,935 |
| Receivables, net (1) | — |
| | 204,518 |
| Loans held-for-sale (2) | 236,018 |
| | 126,947 |
| Loans receivable, net | 1,933 |
| | 111,608 |
| Real estate owned, net | 86,047 |
| | 243,703 |
| Investments in unconsolidated entities | 265,418 |
| | 245,741 |
| Investments held-to-maturity | 179,659 |
| | 71,260 |
| Other | 120,438 |
| | 113,671 |
| | $ | 1,153,840 |
| | 1,276,210 |
| Liabilities: | | | | Notes and other debts payable (3) | $ | 625,081 |
| | 622,335 |
| Other | 94,975 |
| | 85,645 |
| | $ | 720,056 |
| | 707,980 |
|
| | (1) | Receivables, net primarily related to loans sold but not settled as of November 30, 2016. |
| | (2) | Loans held-for-sale related to unsold loans originated by RMF carried at fair value and loans in the FDIC Portfolios carried at lower of cost or market. |
| | (3) | As of November 30, 2017 and 2016, notes and other debts payable primarily included $349.4 million and $348.7 million, respectively, related to Rialto's 7.00% senior notes due 2018 (the "7.00% Senior Notes"), and $162.1 million and $223.5 million, respectively, related to Rialto's warehouse repurchase facilities. |
The assets and liabilities related to the Lennar Multifamily segment were as follows: | | | | | | | | | November 30, | (In thousands) | 2017 | | 2016 | Assets: | | | | Cash and cash equivalents | $ | 8,676 |
| | 6,600 |
| Receivables (1) | 69,678 |
| | 58,929 |
| Land under development | 208,618 |
| | 139,713 |
| Investments in unconsolidated entities | 407,544 |
| | 318,559 |
| Other assets | 16,209 |
| | 2,330 |
| | $ | 710,725 |
| | 526,131 |
| Liabilities: | | | | Accounts payable and other liabilities | $ | 149,715 |
| | 117,973 |
| | $ | 149,715 |
| | 117,973 |
|
| | (1) | Receivables primarily related to general contractor services, net of deferrals and management fee income receivables due from unconsolidated entities as of November 30, 2017 and 2016. |
|