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Supplemental Financial Information
9 Months Ended
Aug. 31, 2012
Supplemental Financial Information [Abstract]  
Supplemental Financial Information
Supplemental Financial Information
The indentures governing the principal amounts of the Company’s 5.95% senior notes due 2013, 5.50% senior notes due 2014, 5.60% senior notes due 2015, 6.50% senior notes due 2016, 4.75% senior notes due 2017, 12.25% senior notes due 2017, 6.95% senior notes due 2018, 2.00% convertible senior notes due 2020, 2.75% convertible senior notes due 2020 and 3.25% convertible senior notes due 2021 require that, if any of the Company’s wholly 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 were guaranteeing the senior notes because they were guaranteeing the $150 million LC Agreement, the $200 million Letter of Credit Facility and the Credit Facility at August 31, 2012. The guarantees are full and unconditional and the guarantor subsidiaries are 100% directly or indirectly owned by Lennar Corporation. The guarantees are joint and several, subject to limitations as to each guarantor designed to eliminate fraudulent conveyance concerns. Supplemental information for the guarantors is as follows:
Condensed Consolidating Balance Sheet
August 31, 2012
(In thousands)
Lennar
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
ASSETS
 
 
 
 
 
 
 
 
 
Lennar Homebuilding:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents, restricted cash and
     receivables, net
$
574,032

 
150,667

 
20,187

 

 
744,886

Inventories

 
4,506,482

 
529,168

 

 
5,035,650

Investments in unconsolidated entities

 
526,519

 
44,147

 

 
570,666

Other assets
46,542

 
646,380

 
220,547

 

 
913,469

Investments in subsidiaries
3,416,526

 
724,539

 

 
(4,141,065
)
 

 
4,037,100

 
6,554,587

 
814,049

 
(4,141,065
)
 
7,264,671

Rialto Investments

 

 
1,674,392

 

 
1,674,392

Lennar Financial Services

 
74,819

 
704,618

 

 
779,437

Total assets
$
4,037,100

 
6,629,406

 
3,193,059

 
(4,141,065
)
 
9,718,500

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Lennar Homebuilding:
 
 
 
 
 
 
 
 
 
Accounts payable and other liabilities
$
234,976

 
514,332

 
32,318

 

 
781,626

Liabilities related to consolidated inventory not owned

 
268,207

 

 

 
268,207

Senior notes and other debts payable
3,179,887

 
269,178

 
222,530

 

 
3,671,595

Intercompany
(2,649,485
)
 
2,132,830

 
516,655

 

 

 
765,378

 
3,184,547

 
771,503

 

 
4,721,428

Rialto Investments

 

 
614,390

 

 
614,390

Lennar Financial Services

 
28,333

 
495,972

 

 
524,305

Total liabilities
765,378

 
3,212,880

 
1,881,865

 

 
5,860,123

Stockholders’ equity
3,271,722

 
3,416,526

 
724,539

 
(4,141,065
)
 
3,271,722

Noncontrolling interests

 

 
586,655

 

 
586,655

Total equity
3,271,722

 
3,416,526

 
1,311,194

 
(4,141,065
)
 
3,858,377

Total liabilities and equity
$
4,037,100

 
6,629,406

 
3,193,059

 
(4,141,065
)
 
9,718,500

Condensed Consolidating Balance Sheet
November 30, 2011
(In thousands)
Lennar
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
ASSETS
 
 
 
 
 
 
 
 
 
Lennar Homebuilding:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents, restricted cash and
     receivables, net
$
871,376

 
190,483

 
24,920

 

 
1,086,779

Inventories

 
3,822,009

 
538,526

 

 
4,360,535

Investments in unconsolidated entities

 
502,363

 
43,397

 

 
545,760

Other assets
35,722

 
269,392

 
219,580

 

 
524,694

Investments in subsidiaries
3,368,336

 
611,311

 

 
(3,979,647
)
 

 
4,275,434

 
5,395,558

 
826,423

 
(3,979,647
)
 
6,517,768

Rialto Investments

 

 
1,897,148

 

 
1,897,148

Lennar Financial Services

 
149,842

 
589,913

 

 
739,755

Total assets
$
4,275,434

 
5,545,400

 
3,313,484

 
(3,979,647
)
 
9,154,671

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Lennar Homebuilding:
 
 
 
 
 
 
 
 
 
Accounts payable and other liabilities
$
290,337

 
483,590

 
29,405

 

 
803,332

Liabilities related to consolidated inventory not owned

 
326,200

 

 

 
326,200

Senior notes and other debts payable
2,922,855

 
215,840

 
224,064

 

 
3,362,759

Intercompany
(1,634,226
)
 
1,105,872

 
528,354

 

 

 
1,578,966

 
2,131,502

 
781,823

 

 
4,492,291

Rialto Investments

 

 
796,120

 

 
796,120

Lennar Financial Services

 
45,562

 
517,173

 

 
562,735

Total liabilities
1,578,966

 
2,177,064

 
2,095,116

 

 
5,851,146

Stockholders’ equity
2,696,468

 
3,368,336

 
611,311

 
(3,979,647
)
 
2,696,468

Noncontrolling interests

 

 
607,057

 

 
607,057

Total equity
2,696,468

 
3,368,336

 
1,218,368

 
(3,979,647
)
 
3,303,525

Total liabilities and equity
$
4,275,434

 
5,545,400

 
3,313,484

 
(3,979,647
)
 
9,154,671

Condensed Consolidating Statement of Operations
Three Months Ended August 31, 2012
(In thousands)
Lennar
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
Revenues:
 
 
 
 
 
 
 
 
 
Lennar Homebuilding
$

 
955,800

 

 

 
955,800

Lennar Financial Services

 
43,163

 
68,091

 
(4,490
)
 
106,764

Rialto Investments

 

 
37,194

 

 
37,194

Total revenues

 
998,963

 
105,285

 
(4,490
)
 
1,099,758

Cost and expenses:
 
 
 
 
 
 
 
 
 
Lennar Homebuilding

 
845,316

 
4,403

 
713

 
850,432

Lennar Financial Services

 
40,266

 
46,233

 
(5,058
)
 
81,441

Rialto Investments

 

 
46,396

 

 
46,396

Corporate general and administrative
31,021

 

 

 
1,265

 
32,286

Total costs and expenses
31,021

 
885,582

 
97,032

 
(3,080
)
 
1,010,555

Lennar Homebuilding equity in loss from
    unconsolidated entities

 
(5,835
)
 
(156
)
 

 
(5,991
)
Lennar Homebuilding other income (expense), net
72

 
(5,435
)
 

 
(43
)
 
(5,406
)
Other interest expense
(1,453
)
 
(22,659
)
 

 
1,453

 
(22,659
)
Rialto Investments equity in earnings from
    unconsolidated entities

 

 
13,551

 

 
13,551

Rialto Investments other expense, net

 

 
(10,063
)
 

 
(10,063
)
Earnings (loss) before income taxes
(32,402
)
 
79,452

 
11,585

 

 
58,635

Benefit (provision) for income taxes
(8,090
)
 
44,373

 
(23,507
)
 

 
12,776

Equity in earnings from subsidiaries
127,601

 
3,776

 

 
(131,377
)
 

Net earnings (loss) (including net loss attributable to
    noncontrolling interests)
87,109

 
127,601

 
(11,922
)
 
(131,377
)
 
71,411

Less: Net loss attributable to noncontrolling interests

 

 
(15,698
)
 

 
(15,698
)
Net earnings attributable to Lennar
$
87,109

 
127,601

 
3,776

 
(131,377
)
 
87,109

Condensed Consolidating Statement of Operations
Three Months Ended August 31, 2011
(In thousands)
Lennar
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
Revenues:
 
 
 
 
 
 
 
 
 
Lennar Homebuilding
$

 
706,256

 
5,498

 

 
711,754

Lennar Financial Services

 
35,133

 
35,532

 
(4,291
)
 
66,374

Rialto Investments

 

 
42,065

 

 
42,065

Total revenues

 
741,389

 
83,095

 
(4,291
)
 
820,193

Cost and expenses:
 
 
 
 
 
 
 
 
 
Lennar Homebuilding

 
654,924

 
10,190

 
(2,205
)
 
662,909

Lennar Financial Services

 
33,719

 
26,080

 
(1,413
)
 
58,386

Rialto Investments

 

 
33,562

 

 
33,562

Corporate general and administrative
21,571

 

 

 
1,205

 
22,776

Total costs and expenses
21,571

 
688,643

 
69,832

 
(2,413
)
 
777,633

Lennar Homebuilding equity in loss from
    unconsolidated entities

 
(4,440
)
 
(112
)
 

 
(4,552
)
Lennar Homebuilding other income (expense), net
(417
)
 
6,931

 

 
426

 
6,940

Other interest expense
(1,452
)
 
(24,107
)
 

 
1,452

 
(24,107
)
Rialto Investments equity in loss from
    unconsolidated entities

 

 
(6,505
)
 

 
(6,505
)
Rialto Investments other income, net

 

 
9,743

 

 
9,743

Earnings (loss) before income taxes
(23,440
)
 
31,130

 
16,389

 

 
24,079

Benefit (provision) for income taxes
8,463

 
(6,488
)
 
(2,554
)
 

 
(579
)
Equity in earnings from subsidiaries
35,707

 
11,065

 

 
(46,772
)
 

Net earnings (including net earnings attributable to
    noncontrolling interests)
20,730

 
35,707

 
13,835

 
(46,772
)
 
23,500

Less: Net earnings attributable to noncontrolling interests

 

 
2,770

 

 
2,770

Net earnings attributable to Lennar
$
20,730

 
35,707

 
11,065

 
(46,772
)
 
20,730

Condensed Consolidating Statement of Operations
Nine Months Ended August 31, 2012
(In thousands)
Lennar
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
Revenues:
 
 
 
 
 
 
 
 
 
Lennar Homebuilding
$

 
2,387,916

 
405

 

 
2,388,321

Lennar Financial Services

 
113,678

 
163,153

 
(13,257
)
 
263,574

Rialto Investments

 

 
102,874

 

 
102,874

Total revenues

 
2,501,594

 
266,432

 
(13,257
)
 
2,754,769

Cost and expenses:
 
 
 
 
 
 
 
 
 
Lennar Homebuilding

 
2,151,982

 
12,257

 
2,780

 
2,167,019

Lennar Financial Services

 
110,711

 
116,562

 
(15,252
)
 
212,021

Rialto Investments

 

 
109,964

 

 
109,964

Corporate general and administrative
84,500

 

 

 
3,796

 
88,296

Total costs and expenses
84,500

 
2,262,693

 
238,783

 
(8,676
)
 
2,577,300

Lennar Homebuilding equity in loss from
    unconsolidated entities

 
(13,880
)
 
(409
)
 

 
(14,289
)
Lennar Homebuilding other income (expense), net
(210
)
 
11,390

 

 
239

 
11,419

Other interest expense
(4,342
)
 
(71,311
)
 

 
4,342

 
(71,311
)
Rialto Investments equity in earnings from
    unconsolidated entities

 

 
37,578

 

 
37,578

Rialto Investments other expense, net

 

 
(23,675
)
 

 
(23,675
)
Earnings (loss) before income taxes
(89,052
)
 
165,100

 
41,143

 

 
117,191

Benefit (provision) for income taxes
2,671

 
449,440

 
(35,490
)
 

 
416,621

Equity in earnings from subsidiaries
641,161

 
26,621

 

 
(667,782
)
 

Net earnings (including net loss attributable to
    noncontrolling interests)
554,780

 
641,161

 
5,653

 
(667,782
)
 
533,812

Less: Net loss attributable to noncontrolling interests

 

 
(20,968
)
 

 
(20,968
)
Net earnings attributable to Lennar
$
554,780

 
641,161

 
26,621

 
(667,782
)
 
554,780

Condensed Consolidating Statement of Operations
Nine Months Ended August 31, 2011
(In thousands)
Lennar
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
Revenues:
 
 
 
 
 
 
 
 
 
Lennar Homebuilding
$

 
1,813,528

 
27,411

 

 
1,840,939

Lennar Financial Services

 
101,828

 
105,088

 
(23,407
)
 
183,509

Rialto Investments

 

 
118,283

 

 
118,283

Total revenues

 
1,915,356

 
250,782

 
(23,407
)
 
2,142,731

Cost and expenses:
 
 
 
 
 
 
 
 
 
Lennar Homebuilding

 
1,703,368

 
43,709

 
(5,694
)
 
1,741,383

Lennar Financial Services

 
104,498

 
82,837

 
(15,492
)
 
171,843

Rialto Investments

 

 
94,184

 

 
94,184

Corporate general and administrative
62,986

 

 

 
3,740

 
66,726

Total costs and expenses
62,986

 
1,807,866

 
220,730

 
(17,446
)
 
2,074,136

Lennar Homebuilding equity in earnings (loss) from
    unconsolidated entities

 
6,872

 
(346
)
 

 
6,526

Lennar Homebuilding other income, net
8,737

 
46,383

 

 
(8,709
)
 
46,411

Other interest expense
(14,670
)
 
(68,654
)
 

 
14,670

 
(68,654
)
Rialto Investments equity in loss from
    unconsolidated entities

 

 
(4,953
)
 

 
(4,953
)
Rialto Investments other income, net

 

 
38,275

 

 
38,275

Earnings (loss) before income taxes
(68,919
)
 
92,091

 
63,028

 

 
86,200

Benefit (provision) for income taxes
32,170

 
(23,048
)
 
(8,249
)
 

 
873

Equity in earnings from subsidiaries
98,670

 
29,627

 

 
(128,297
)
 

Net earnings (including net earnings attributable to
    noncontrolling interests)
61,921

 
98,670

 
54,779

 
(128,297
)
 
87,073

Less: Net earnings attributable to noncontrolling interests

 

 
25,152

 

 
25,152

Net earnings attributable to Lennar
$
61,921

 
98,670

 
29,627

 
(128,297
)
 
61,921

Condensed Consolidating Statement of Cash Flows
Nine Months Ended August 31, 2012
(In thousands)
Lennar
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net earnings (including net loss attributable to
      noncontrolling interests)
$
554,780

 
641,161

 
5,653

 
(667,782
)
 
533,812

Adjustments to reconcile net earnings (including net
     loss attributable to noncontrolling interests) to net
     cash provided by (used in) operating activities
(1,996
)
 
(1,578,847
)
 
(111,258
)
 
667,782

 
(1,024,319
)
Net cash provided by (used in) operating activities
552,784

 
(937,686
)
 
(105,605
)
 

 
(490,507
)
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Investments in and contributions to Lennar
     Homebuilding unconsolidated entities, net

 
(28,007
)
 
(1,142
)
 

 
(29,149
)
Distributions of capital from Rialto Investments
     unconsolidated entities, net

 

 
54,646

 

 
54,646

Decrease in Rialto Investments defeasance cash to
     retire notes payable

 

 
33,411

 

 
33,411

Receipts of principal payments on Rialto Investments
     loans receivable

 

 
52,913

 

 
52,913

Proceeds from sales of Rialto Investments real
     estate owned

 

 
121,848

 

 
121,848

Other
(218
)
 
3,807

 
3,692

 

 
7,281

Net cash provided by (used in) investing activities
(218
)
 
(24,200
)
 
265,368

 

 
240,950

Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Net repayments under Lennar Financial Services debt

 
(77
)
 
(52,343
)
 

 
(52,420
)
Net proceeds from convertible senior notes and
     senior notes
445,186

 

 

 

 
445,186

Partial redemption of senior notes
(210,862
)
 

 

 

 
(210,862
)
Principal repayments on Rialto Investments
     notes payable

 

 
(170,889
)
 

 
(170,889
)
Net repayments on other borrowings

 
(22,895
)
 
(4,473
)
 

 
(27,368
)
Exercise of land option contracts from an
     unconsolidated land investment venture

 
(48,242
)
 

 

 
(48,242
)
Net receipts related to noncontrolling interests

 

 
566

 

 
566

Excess tax benefits from share-based awards
1,572

 

 

 

 
1,572

Common stock:
 
 
 
 
 
 
 
 
 
Issuances
16,323

 

 

 

 
16,323

Dividends
(22,755
)
 

 

 

 
(22,755
)
Intercompany
(1,077,007
)
 
981,589

 
95,418

 

 

Net cash provided by (used in) financing activities
(847,543
)
 
910,375

 
(131,721
)
 

 
(68,889
)
Net increase (decrease) in cash and cash equivalents
(294,977
)
 
(51,511
)
 
28,042

 

 
(318,446
)
Cash and cash equivalents at beginning of period
864,237

 
172,018

 
127,349

 

 
1,163,604

Cash and cash equivalents at end of period
$
569,260

 
120,507

 
155,391

 

 
845,158

Condensed Consolidating Statement of Cash Flows
Nine Months Ended August 31, 2011
(In thousands)
Lennar
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Total
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net earnings (including net earnings attributable to
      noncontrolling interests)
$
61,921

 
98,670

 
54,779

 
(128,297
)
 
87,073

Adjustments to reconcile net earnings (including net
     earnings attributable to noncontrolling interests) to
     net cash provided by (used in) operating activities
34,414

 
(362,442
)
 
(2,925
)
 
128,297

 
(202,656
)
Net cash provided by (used in) operating activities
96,335

 
(263,772
)
 
51,854

 

 
(115,583
)
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Investments in and contributions to Lennar
     Homebuilding unconsolidated entities, net

 
(60,027
)
 
(4,158
)
 

 
(64,185
)
Investments in and contributions to Rialto Investments
     unconsolidated entities, net

 

 
(64,360
)
 

 
(64,360
)
Increase in Rialto Investments defeasance cash to
     retire notes payable

 

 
(88,358
)
 

 
(88,358
)
Receipts of principal payments on Rialto Investments
     loans receivable

 

 
52,849

 

 
52,849

Proceeds from sales of Rialto Investments real
      estate owned

 

 
55,283

 

 
55,283

Other
(8
)
 
(44,063
)
 
(8,787
)
 

 
(52,858
)
Net cash used in investing activities
(8
)
 
(104,090
)
 
(57,531
)
 

 
(161,629
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Net repayments under Lennar Financial Services debt

 
(15
)
 
(56,298
)
 

 
(56,313
)
Net repayments on other borrowings

 
(43,450
)
 
(38,056
)
 

 
(81,506
)
Exercise of land option contracts from an
     unconsolidated land investment venture

 
(33,827
)
 

 

 
(33,827
)
Net payments related to noncontrolling interests

 

 
(1,322
)
 

 
(1,322
)
Excess tax benefits from share-based awards
283

 

 

 

 
283

Common stock:
 
 
 
 
 
 
 
 
 
Issuances
5,547

 

 

 

 
5,547

Repurchases
(29
)
 

 

 

 
(29
)
Dividends
(22,425
)
 

 

 

 
(22,425
)
Intercompany
(488,655
)
 
408,663

 
79,992

 

 

Net cash provided by (used in) financing activities
(505,279
)
 
331,371

 
(15,684
)
 

 
(189,592
)
Net decrease in cash and cash equivalents
(408,952
)
 
(36,491
)
 
(21,361
)
 

 
(466,804
)
Cash and cash equivalents at beginning of period
1,071,542

 
179,215

 
143,378

 

 
1,394,135

Cash and cash equivalents at end of period
$
662,590

 
142,724

 
122,017

 

 
927,331