10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended February 28, 2013

Commission File Number: 1-11749

Lennar Corporation

(Exact name of registrant as specified in its charter)

Delaware	95-4337490
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

700 Northwest 107th Avenue, Miami, Florida 33172

(Address of principal executive offices) (Zip Code)

(305) 559-4000

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    YES  ý    NO  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    YES  ý    NO  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	ý	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    YES  ¨    NO  ý

Common stock outstanding as of March 31, 2013:

Class A161,082,667

Class B   31,303,195

Part I. Financial Information

Item 1. Financial Statements

Lennar Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

(Dollars in thousands, except shares and per share amounts)

(unaudited)

	February 28,		November 30,
	2013 (1)		2012 (1)
ASSETS
Lennar Homebuilding:
Cash and cash equivalents	$	1,112,728	1,146,867
Restricted cash	8,085		8,096
Receivables, net	58,175		53,745
Inventories:
Finished homes and construction in progress	1,945,434		1,625,048
Land and land under development	3,341,069		3,119,804
Consolidated inventory not owned	325,473		326,861
Total inventories	5,611,976		5,071,713
Investments in unconsolidated entities	577,342		565,360
Other assets	973,565		956,070
	8,341,871		7,801,851
Rialto Investments:
Cash and cash equivalents	64,188		105,310
Defeasance cash to retire notes payable	4,655		223,813
Loans receivable, net	406,207		436,535
Real estate owned, held-for-sale	178,678		134,161
Real estate owned, held-and-used, net	547,273		601,022
Investments in unconsolidated entities	106,609		108,140
Other assets	34,623		38,379
	1,342,233		1,647,360
Lennar Financial Services	748,165		912,995
Total assets	$	10,432,269	10,362,206

(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 February 28, 2013, total assets include $1,837.4 million related to consolidated VIEs of which $15.9 million is included in Lennar Homebuilding cash and cash equivalents, $6.0 million in Lennar Homebuilding receivables, net, $65.6 million in Lennar Homebuilding finished homes and construction in progress, $485.6 million in Lennar Homebuilding land and land under development, $65.9 million in Lennar Homebuilding consolidated inventory not owned, $44.5 million in Lennar Homebuilding investments in unconsolidated entities, $223.2 million in Lennar Homebuilding other assets, $63.3 million in Rialto Investments cash and cash equivalents, $4.7 million in Rialto Investments defeasance cash to retire notes payable, $318.5 million in Rialto Investments loans receivable, net, $115.3 million in Rialto Investments real estate owned, held-for-sale, $422.8 million in Rialto Investments real estate owned, held-and-used, net $0.6 million in Rialto Investments in unconsolidated entities and $5.5 million in Rialto Investments other assets.

As of November 30, 2012, total assets include $2,128.6 million related to consolidated VIEs of which $13.2 million is included in Lennar Homebuilding cash and cash equivalents, $6.0 million in Lennar Homebuilding receivables, net, $57.4 million in Lennar Homebuilding finished homes and construction in progress, $482.6 million in Lennar Homebuilding land and land under development, $65.2 million in Lennar Homebuilding consolidated inventory not owned, $43.7 million in Lennar Homebuilding investments in unconsolidated entities, $224.1 million in Lennar Homebuilding other assets, $104.8 million in Rialto Investments cash and cash equivalents, $223.8 million in Rialto Investments defeasance cash to retire notes payable, $350.2 million in Rialto Investments loans receivable, net, $94.2 million in Rialto Investments real estate owned, held-for-sale, $454.9 million in Rialto Investments real estate owned, held-and-used, net, $0.7 million in Rialto Investments in unconsolidated entities and $7.8 million in Rialto Investments other assets.

See accompanying notes to condensed consolidated financial statements.

2

Lennar Corporation and Subsidiaries

Condensed Consolidated Balance Sheets – (Continued)

(Dollars in thousands, except shares and per share amounts)

(unaudited)

	February 28,			November 30,
	2013 (2)			2012 (2)
LIABILITIES AND EQUITY
Lennar Homebuilding:
Accounts payable	$	229,880		220,690
Liabilities related to consolidated inventory not owned	266,803			268,159
Senior notes and other debts payable	4,505,662			4,005,051
Other liabilities	600,569			635,524
	5,602,914			5,129,424
Rialto Investments:
Notes payable and other liabilities	285,166			600,602
Lennar Financial Services	474,549			630,972
Total liabilities	6,362,629			6,360,998
Stockholders’ equity:
Preferred stock	—			—
Class A common stock of $0.10 par value; Authorized: February 28, 2013 and November 30, 2012      - 300,000,000 shares; Issued: February 28, 2013 - 172,726,088 shares and November 30, 2012      -172,397,149 shares	17,273			17,240
Class B common stock of $0.10 par value; Authorized: February 28, 2013 and November 30, 2012      - 90,000,000 shares; Issued: February 28, 2013 - 32,982,815 shares and November 30, 2012      - 32,982,815 shares	3,298			3,298
Additional paid-in capital	2,436,078			2,421,941
Retained earnings	1,654,930			1,605,131
Treasury stock, at cost; February 28, 2013 - 11,702,017 Class A common shares and 1,679,620      Class B common shares; November 30, 2012 - 12,152,816 Class A common shares and      1,679,620 Class B common shares	(615,698		)	(632,846	)
Total stockholders’ equity	3,495,881			3,414,764
Noncontrolling interests	573,759			586,444
Total equity	4,069,640			4,001,208
Total liabilities and equity	$	10,432,269		10,362,206

(2) As of February 28, 2013, total liabilities include $435.3 million related to consolidated VIEs as to which there was no recourse against the Company, of which $10.1 million is included in Lennar Homebuilding accounts payable, $35.8 million in Lennar Homebuilding liabilities related to consolidated inventory not owned, $186.7 million in Lennar Homebuilding senior notes and other debts payable, $14.5 million in Lennar Homebuilding other liabilities and $188.2 million in Rialto Investments notes payable and other liabilities.

As of November 30, 2012, total liabilities include $737.2 million related to consolidated VIEs as to which there was no recourse against the Company, of which $10.6 million is included in Lennar Homebuilding accounts payable, $35.9 million in Lennar Homebuilding liabilities related to consolidated inventory not owned, $181.6 million in Lennar Homebuilding senior notes and other debts payable, $15.7 million in Lennar Homebuilding other liabilities and $493.4 million in Rialto Investments notes payable and other liabilities.

See accompanying notes to condensed consolidated financial statements.

3

Lennar Corporation and Subsidiaries

Condensed Consolidated Statements of Operations

(Dollars in thousands, except per share amounts)

(unaudited)

	Three Months Ended
	February 28,			February 29,
	2013			2012
Revenues:
Lennar Homebuilding	$	868,444		624,433
Lennar Financial Services	95,880			68,215
Rialto Investments	25,622			32,208
Total revenues	989,946			724,856
Costs and expenses:
Lennar Homebuilding	778,674			584,745
Lennar Financial Services	79,778			59,965
Rialto Investments	31,771			33,370
Corporate general and administrative	31,270			26,842
Total costs and expenses	921,493			704,922
Lennar Homebuilding equity in earnings (loss) unconsolidated entities	(867		)	1,083
Lennar Homebuilding other income, net	4,266			4,067
Other interest expense	(26,031		)	(24,849	)
Rialto Investments equity in earnings from unconsolidated entities	6,173			18,458
Rialto Investments other income (expense), net	1,327			(12,240	)
Earnings before income taxes	53,321			6,453
Benefit for income taxes	3,637			1,524
Net earnings (including net loss attributable to noncontrolling interests)	$	56,958		7,977
Less: Net loss attributable to noncontrolling interests (1)	(534		)	(6,991	)
Net earnings attributable to Lennar	$	57,492		14,968
Basic earnings per share	$	0.30		0.08
Diluted earnings per share	$	0.26		0.08
Cash dividends per each Class A and Class B common share	$	0.04		0.04
Comprehensive earnings attributable to Lennar	$	57,492		14,968
Comprehensive loss attributable to noncontrolling interests	$	(534	)	(6,991	)

(1) Net loss attributable to noncontrolling interests for the three months ended February 28, 2013 and February 29, 2012 includes ($0.3) million and ($4.3) million, respectively, related to the FDIC’s interest in the portfolio of real estate loans that the Company acquired in partnership with the FDIC.

See accompanying notes to condensed consolidated financial statements.

4

Lennar Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Dollars in thousands)

(unaudited)

	Three Months Ended
	February 28,			February 29,
	2013			2012
Cash flows from operating activities:
Net earnings (including net loss attributable to noncontrolling interests)	$	56,958		7,977
Adjustments to reconcile net earnings (including net loss attributable to noncontrolling interests) to net cash used in operating activities:
Depreciation and amortization	6,333			7,630
Amortization of discount/premium on debt, net	5,540			5,371
Lennar Homebuilding equity in (earnings) loss from unconsolidated entities	867			(1,083	)
Distributions of earnings from Lennar Homebuilding unconsolidated entities	53			126
Rialto Investments equity in earnings from unconsolidated entities	(6,173		)	(18,458	)
Distributions of earnings from Rialto Investments unconsolidated entities	107			757
Share based compensation expense	6,486			8,161
Tax benefit from share-based awards	3,164			—
Excess tax benefits from share-based awards	(3,013		)	—
Deferred income tax benefit	(7,730		)	—
Gains on retirement of Lennar Homebuilding other debts payable	(1,000		)	(988	)
Unrealized and realized gains on Rialto Investments real estate owned	(10,136		)	(5,831	)
Impairments of Rialto Investments loans receivable and REO	7,885			4,748
Valuation adjustments and write-offs of option deposits and pre-acquisition costs	1,713			2,326
Changes in assets and liabilities:
Decrease in restricted cash	417			773
(Increase) decrease in receivables	(240		)	101,672
Increase in inventories, excluding valuation adjustments and write-offs of option deposits and pre-acquisition costs	(514,597		)	(172,159	)
(Increase) decrease in other assets	5,559			(1,183	)
Decrease in Lennar Financial Services loans-held-for-sale	167,423			30,866
Decrease in accounts payable and other liabilities	(41,108		)	(103,149	)
Net cash used in operating activities	(321,492		)	(132,444	)
Cash flows from investing activities:
Net (additions) disposals of operating properties and equipment	(1,261		)	1,140
Investments in and contributions to Lennar Homebuilding unconsolidated entities	(14,708		)	(26,810	)
Distributions of capital from Lennar Homebuilding unconsolidated entities	17,456			9,897
Investments in and contributions to Rialto Investments unconsolidated entities	—			(7,294	)
Distributions of capital from Rialto Investments unconsolidated entities	7,680			81
Decrease in Rialto Investments defeasance cash to retire notes payable	219,158			108,163
Receipts of principal payments on Rialto Investments loans receivable	18,434			33,549
Proceeds from sales of Rialto Investments real estate owned	34,451			37,868
Improvements to Rialto Investments real estate owned	(1,716		)	(3,963	)
Purchase of loans receivable	(5,250		)	—
Purchases of Lennar Homebuilding investments available-for-sale	(15,417		)	(2,408	)
Proceeds from sales of Lennar Homebuilding investments available-for-sale	—			6,436
Decrease in Lennar Financial Services loans held-for-investment, net	446			447
Purchases of Lennar Financial Services investment securities	(13,357		)	(1,150	)
Proceeds from maturities of Lennar Financial Services investment securities	14,130			750
Net cash provided by investing activities	$	260,046		156,706

See accompanying notes to condensed consolidated financial statements.

5

Lennar Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Dollars in thousands)

(unaudited)

	Three Months Ended
	February 28,			February 29,
	2013			2012
Cash flows from financing activities:
Net repayments under Lennar Financial Services debt	$	(146,061	)	(150,684	)
Proceeds from senior notes	450,000			50,000
Debt issuance costs of senior notes and convertible senior notes	(4,730		)	(1,035	)
Principal repayments on Rialto Investments notes payable	(304,123		)	(170,026	)
Proceeds from other borrowings	58,092			28,090
Principal payments on other borrowings	(63,926		)	(20,267	)
Exercise of land option contracts from an unconsolidated land investment venture	(1,270		)	(4,628	)
Receipts related to noncontrolling interests	434			391
Payments related to noncontrolling interests	(12,585		)	—
Excess tax benefits from share-based awards	3,013			—
Common stock:
Issuances	21,668			10,761
Dividends	(7,693		)	(7,562	)
Net cash used in financing activities	(7,181		)	(264,960	)
Net decrease in cash and cash equivalents	(68,627		)	(240,698	)
Cash and cash equivalents at beginning of period	1,310,743			1,163,604
Cash and cash equivalents at end of period	$	1,242,116		922,906
Summary of cash and cash equivalents:
Lennar Homebuilding	$	1,112,728		792,165
Lennar Financial Services	65,200			56,555
Rialto Investments	64,188			74,186
	$	1,242,116		922,906
Supplemental disclosures of non-cash investing and financing activities:
Lennar Homebuilding:
Non-cash contributions to unconsolidated entities	$	16,734		1,314
Inventory acquired in satisfaction of other assets including investments available-for-sale	$	—		90,385
Non-cash purchases of investments available-for-sale	$	—		12,520
Purchases of inventories and other assets financed by sellers	$	59,821		49,615
Rialto Investments:
Real estate owned acquired in satisfaction/partial satisfaction of loans receivable	$	15,321		41,588

See accompanying notes to condensed consolidated financial statements.

6

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(unaudited)

(1) 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 VIEs (see Note 15) 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, 2012. 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 months ended February 28, 2013 are not necessarily indicative of the results to be expected for the full year.

Rialto Management Fees Revenue

The Rialto Investments segment provides services to a variety of legal entities and investment vehicles such as funds, joint ventures, co-invests, and other private equity structures to manage their respective investments. As a result, Rialto earns and receives management fees, underwriting fees, due diligence fees and liquidation fees on asset resolutions. The management fees and other forms of compensation to Rialto vary on a deal by deal basis and can increase after meeting certain investment hurdles. Management fees related to the Rialto Investments segment are included in Rialto Investments revenue and are recorded when contract terms are met, fees are determinable and collectability is reasonably assured. We believe the way we record Rialto Investments' management fees revenue is a significant accounting policy because it is a significant portion of Rialto Investments segment's revenues and will continue to grow in the future as the segment manages more assets.

Reclassifications

Certain prior year amounts in the condensed consolidated financial statements have been reclassified to conform with the 2013 presentation. These reclassifications had no impact on the Company’s results of operations.

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.

7

(2) Operating and Reporting Segments

The Company’s operating segments are aggregated into reportable segments, based primarily upon similar economic characteristics, geography and product type. The Company’s reportable segments consist of:

(1) Homebuilding East

(2) Homebuilding Central

(3) Homebuilding West

(4) Homebuilding Southeast Florida

(5) Homebuilding Houston

(6) Lennar Financial Services

(7) Rialto Investments

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, equity in earnings (loss) from unconsolidated entities and other income (expense), net, less the cost of homes sold and land sold, selling, general and administrative expenses and other interest expense of the segment.

The Company’s reportable homebuilding segments and all other homebuilding operations not required to be reported separately have operations located in:

East: Florida⁽¹⁾, Georgia, Maryland, New Jersey, North Carolina, South Carolina and Virginia

Central: Arizona, Colorado and Texas⁽²⁾ 

West: California and Nevada

Southeast Florida: Southeast Florida

Houston: Houston, Texas

Other: Illinois, Minnesota, Oregon and Washington

(1)Florida in the East reportable segment excludes Southeast Florida, which is its own reportable segment.

(2)Texas in the Central reportable segment excludes Houston, Texas, which is its own reportable segment.

Operations of the Lennar Financial Services segment include mortgage financing, title insurance and closing services for both buyers of the Company’s homes and others. Substantially all of the loans the Lennar 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. Lennar Financial Services’ operating earnings consist of revenues generated primarily from mortgage financing, title insurance and closing services, less the cost of such services and certain selling, general and administrative expenses incurred by the segment. The Lennar Financial Services segment operates generally in the same states as the Company’s homebuilding operations, as well as in other states.

Operations of the Rialto Investments (“Rialto”) segment include sourcing, underwriting, pricing, managing and ultimately monetizing real estate and real estate related assets, as well as providing similar services to others in markets across the country. Rialto’s operating earnings consists of revenues generated primarily from accretable interest income associated with portfolios of real estate loans acquired in partnership with the FDIC and other portfolios of real estate loans and assets acquired, asset management, due diligence and underwriting fees derived from the segment's Real Estate Investment Fund, LP (the “Fund I”), fees for sub-advisory services, other income (expense), net, consisting primarily of net gains upon foreclosure of real estate owned (“REO”) and net gains on sale of REO, and equity in earnings (loss) from unconsolidated entities, less the costs incurred by the segment for managing portfolios, REO expenses and other general administrative expenses.

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 2012 Annual Report on Form 10-K. 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.

8

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

(In thousands)	February 28, 2013		November 30, 2012
Assets:
Homebuilding East	$	1,640,261	1,565,439
Homebuilding Central	820,877		729,300
Homebuilding West	2,601,065		2,396,515
Homebuilding Southeast Florida	678,094		603,360
Homebuilding Houston	312,404		273,605
Homebuilding Other (1)	805,786		724,461
Rialto Investments (2)	1,342,233		1,647,360
Lennar Financial Services	748,165		912,995
Corporate and unallocated	1,483,384		1,509,171
Total assets	$	10,432,269	10,362,206

(1) Includes assets related to the Company's multifamily business of $63.2 million and $29.1 million, respectively, as of February 28, 2013 and November 30, 2012.

(2) Consists primarily of assets of consolidated VIEs (see Note 8).

	Three Months Ended
	February 28,			February 29,
(In thousands)	2013			2012
Revenues:
Homebuilding East	$	288,892		244,833
Homebuilding Central	149,032			85,713
Homebuilding West	174,075			123,085
Homebuilding Southeast Florida	71,851			49,789
Homebuilding Houston	108,518			84,834
Homebuilding Other	76,076			36,179
Lennar Financial Services	95,880			68,215
Rialto Investments	25,622			32,208
Total revenues (1)	$	989,946		724,856
Operating earnings (loss):
Homebuilding East	$	22,875		13,947
Homebuilding Central	13,957			1,064
Homebuilding West	12,603			(7,573	)
Homebuilding Southeast Florida	9,408			6,634
Homebuilding Houston	9,506			4,516
Homebuilding Other	(1,211		)	1,401
Lennar Financial Services	16,102			8,250
Rialto Investments	1,351			5,056
Total operating earnings	84,591			33,295
Corporate general and administrative expenses	31,270			26,842
Earnings before income taxes	$	53,321		6,453

(1) Total revenues are net of sales incentives of $74.0 million ($23,300 per home delivered) for the three months ended February 28, 2013, compared to $84.5 million ($34,200 per home delivered) for the three months ended February 29, 2012.

9

Valuation adjustments and write-offs relating to the Company’s homebuilding operations were as follows:

	Three Months Ended
	February 28,		February 29,
(In thousands)	2013		2012
Valuation adjustments to finished homes, CIP and land on which the Company intends to build homes:
East	$	49	217
Central	37		153
West	98		530
Southeast Florida	1,050		328
Houston	—		61
Other	21		736
Total	1,255		2,025
Valuation adjustments to land the Company intends to sell or has sold to third parties:
East	83		—
Central	2		—
West	158		—
Total	243		—
Write-offs of option deposits and pre-acquisition costs:
East	171		7
Central	26		49
West	18		232
Other	—		2
Total	215		290
Valuation adjustments to investments of unconsolidated entities:
East	—		11
Total	—		11
Total valuation adjustments and write-offs of option deposits and pre-acquisition costs	$	1,713	2,326

During the three months ended February 28, 2013, the Company recorded lower valuation adjustments than during the three months ended February 29, 2012. Changes in market conditions and other specific developments may cause the Company to re-evaluate its strategy regarding certain 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.

10

(3) Lennar Homebuilding Investments in Unconsolidated Entities

Summarized condensed financial information on a combined 100% basis related to Lennar Homebuilding’s unconsolidated entities that are accounted for by the equity method was as follows:

Statements of Operations

	Three Months Ended
	February 28,			February 29,
(In thousands)	2013			2012
Revenues	$	81,224		82,644
Costs and expenses	81,637			83,422
Other income	13,361			—
Net earnings (loss) of unconsolidated entities	$	12,948		(778	)
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities	$	(867	)	1,083

Balance Sheets

(In thousands)	February 28, 2013		November 30, 2012
Assets:
Cash and cash equivalents	$	167,418	157,340
Inventories	2,802,210		2,792,064
Other assets	183,024		250,940
	$	3,152,652	3,200,344
Liabilities and equity:
Accounts payable and other liabilities	$	255,369	310,496
Debt	718,154		759,803
Equity	2,179,129		2,130,045
	$	3,152,652	3,200,344

As of February 28, 2013 and November 30, 2012, the Company’s recorded investments in Lennar Homebuilding unconsolidated entities were $577.3 million and $565.4 million, respectively, while the underlying equity in Lennar Homebuilding unconsolidated entities partners’ net assets as of February 28, 2013 and November 30, 2012 was $690.6 million, and $681.6 million, respectively, primarily as a result of the Company buying its interest in a partner's equity in a Lennar Homebuilding unconsolidated entity at a discount to book value.

In fiscal 2007, the Company sold a portfolio of land to a strategic land investment venture with Morgan Stanley Real Estate Fund II, L.P., an affiliate of Morgan Stanley & Co., Inc., in which the Company has approximately a 20% ownership interest and 50% voting rights. Due to the nature of the Company’s continuing involvement, the transaction did not qualify as a sale by the Company under GAAP; thus, the inventory has remained on the Company’s condensed consolidated balance sheet in consolidated inventory not owned. As of February 28, 2013 and November 30, 2012, the portfolio of land (including land development costs) of $255.8 million and $264.9 million, respectively, is also reflected as inventory in the summarized condensed financial information related to Lennar Homebuilding’s unconsolidated entities.

The Lennar 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.

11

The summary of the Company’s net recourse exposure related to Lennar Homebuilding unconsolidated entities in which the Company has investments was as follows:

(In thousands)	February 28, 2013			November 30, 2012
Several recourse debt - repayment	$	40,773		48,020
Joint and several recourse debt - repayment	15,000			18,695
The Company’s maximum recourse exposure	55,773			66,715
Less: joint and several reimbursement agreements with the Company’s partners	(13,500		)	(16,826	)
The Company’s net recourse exposure	$	42,273		49,889

During the three months ended February 28, 2013, the Company’s maximum recourse exposure related to indebtedness of Lennar Homebuilding unconsolidated entities decreased by $10.9 million primarily related to the joint ventures selling assets and other transactions.

The recourse debt exposure in the previous table represents the Company’s maximum recourse exposure to loss from guarantees and does not take into account the underlying value of the collateral or the other assets of the borrowers that are available to repay the debt or to reimburse the Company for any payments on its guarantees. The Lennar Homebuilding unconsolidated entities that have recourse debt have a significant amount of assets and equity. The summarized balance sheets of Lennar Homebuilding’s unconsolidated entities with recourse debt were as follows:

(In thousands)	February 28, 2013		November 30, 2012
Assets	$	1,811,292	1,843,163
Liabilities	$	732,346	765,295
Equity	$	1,078,946	1,077,868

In addition, in most instances in which the Company has guaranteed debt of a Lennar Homebuilding unconsolidated entity, the Company’s partners have also guaranteed that debt and are required to contribute their share of the guarantee payments. Historically, the Company has had repayment guarantees and/or maintenance guarantees. 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 the event of default, if the Company’s venture partner does not have adequate financial resources to meet its obligations under the reimbursement agreement, the Company may be liable for more than its proportionate share, up to its maximum recourse exposure, which is the full amount covered by the joint and several guarantee. The maintenance guarantees only apply if the value of the collateral (generally land and improvements) is less than a specified percentage of the loan balance. If the Company is required to make a payment under a maintenance guarantee to bring the value of the collateral above the specified percentage of the loan balance, the payment would constitute a capital contribution or loan to the Lennar 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 February 28, 2013 and November 30, 2012, the Company does not have any maintenance guarantees related to its Lennar Homebuilding unconsolidated entities.

In connection with many of the loans to Lennar 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.

During the three months ended February 28, 2013, there were no loan paydowns by Lennar relating to recourse debt. During the three months ended February 29, 2012, there were other loan paydowns of $3.4 million. During both the three months ended February 28, 2013 and February 29, 2012, there were no payments under completion guarantees.

As of February 28, 2013, the fair values of the repayment guarantees and completion guarantees were not material. The Company believes that as of February 28, 2013, in the event it becomes legally obligated to perform under a guarantee of the obligation of a Lennar Homebuilding unconsolidated entity due to a triggering event under a guarantee, most of the time the collateral should 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 for its joint ventures (see Note 11).

12

The total debt of the Lennar Homebuilding unconsolidated entities in which the Company has investments was as follows:

(In thousands)	February 28, 2013			November 30, 2012
The Company’s net recourse exposure	$	42,273		49,889
Reimbursement agreements from partners	13,500			16,826
The Company’s maximum recourse exposure	$	55,773		66,715
Non-recourse bank debt and other debt (partner’s share of several recourse)	$	93,066		114,900
Non-recourse land seller debt or other debt	18,488			26,340
Non-recourse debt with completion guarantees	464,044			458,418
Non-recourse debt without completion guarantees	86,783			93,430
Non-recourse debt to the Company	662,381			693,088
Total debt	$	718,154		759,803
The Company’s maximum recourse exposure as a % of total JV debt	8		%	9	%

(4) 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 three months ended February 28, 2013 and February 29, 2012:

				Stockholders’ Equity
(In thousands)	Total Equity			Class A Common Stock	Class B Common Stock	Additional Paid in Capital	Treasury Stock		Retained Earnings		Noncontrolling Interests
Balance at November 30, 2012	$	4,001,208		17,240	3,298	2,421,941	(632,846	)	1,605,131		586,444
Net earnings (including net loss    attributable to noncontrolling    interests)	56,958			—	—	—	—		57,492		(534	)
Employee stock and directors    plans	21,668			33	—	4,487	17,148		—		—
Tax benefit from employee stock    plans and vesting of restricted    stock	3,164			—	—	3,164	—		—		—
Amortization of restricted stock	6,486			—	—	6,486	—		—		—
Cash dividends	(7,693		)	—	—	—	—		(7,693	)	—
Receipts related to    noncontrolling interests	434			—	—	—	—		—		434
Payments related to    noncontrolling interests	(12,585		)	—	—	—	—		—		(12,585	)
Balance at February 28, 2013	$	4,069,640		17,273	3,298	2,436,078	(615,698	)	1,654,930		573,759

				Stockholders’ Equity
(In thousands)	Total Equity			Class A Common Stock	Class B Common Stock	Additional Paid in Capital	Treasury Stock		Retained Earnings		Noncontrolling Interests
Balance at November 30, 2011	$	3,303,525		16,910	3,298	2,341,079	(621,220	)	956,401		607,057
Net earnings (including net    loss attributable to    noncontrolling interests)	7,977			—	—	—	—		14,968		(6,991	)
Employee stock and directors    plans	11,646			46	—	6,078	5,522		—		—
Amortization of restricted stock	7,276			—	—	7,276	—		—		—
Cash dividends	(7,562		)	—	—	—	—		(7,562	)	—
Receipts related to    noncontrolling interests	391			—	—	—	—		—		391
Balance at February 29, 2012	$	3,323,253		16,956	3,298	2,354,433	(615,698	)	963,807		600,457

The Company has a stock repurchase program which permits the purchase of up to 20 million shares of its outstanding common stock. During the three months ended February 28, 2013 and February 29, 2012, there were no repurchases of

13

common stock under the stock repurchase program. As of February 28, 2013, 6.2 million shares of common stock can be repurchased in the future under the program.

During three months ended February 28, 2013 and February 29, 2012, treasury stock decreased by 0.5 million and 0.3 million, respectively, in Class A common shares due to activity related to the Company's equity compensation plan.

(5) Income Taxes

A reduction of the carrying amounts of deferred tax assets by a valuation allowance is required, if based on the available evidence, it is more likely than not that such assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed each reporting period by the Company based on the more-likely-than-not realization threshold criterion. In the assessment of the need for a valuation allowance, appropriate consideration is given to all positive and negative evidence related to the realization of the deferred tax assets. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, actual earnings, forecasts of future profitability, the duration of statutory carryforward periods, the Company’s experience with loss carryforwards not expiring unused and tax planning alternatives.

During the year ended November 30, 2012, the Company concluded that it was more likely than not that the majority of its deferred tax assets would be utilized. This conclusion was based on a detailed evaluation of all relevant evidence, both positive and negative as detailed in the Company's Form 10-K for the year ended November 30, 2012. Accordingly, the Company reversed a majority of its valuation allowance against its deferred tax assets. As of November 30, 2012, the Company had a valuation allowance of $88.8 million, primarily related to state net operating loss ("NOL") carryforwards.

During the three months ended February 28, 2013, the Company concluded that it was more likely than not that a portion of its state NOL carryforwards related to which a valuation allowance had been established would be utilized. This conclusion was based on additional positive evidence including actual and forecasted profitability. Accordingly, during the three months ended February 28, 2013, the Company reversed $25.1 million of its valuation allowance against its state NOL carryforwards. This reversal was partially offset by a tax provision of $21.5 million primarily related to pre-tax earnings during the three months ended February 28, 2013. Therefore, the Company had a $3.6 million net benefit for income taxes during the three months ended February 28, 2013. During the three months ended February 29, 2012, the Company recorded a tax benefit of $1.5 million, primarily related to a refund claim for certain losses carried back to a prior year. Based on an analysis utilizing objectively verifiable evidence, it was not more likely than not that certain state NOL carryforwards would be utilized due to an inability to carry back these losses in most states and short carryforward periods that exist in certain states. As a result, as of February 28, 2013, the Company had a valuation allowance of $63.7 million against its deferred tax assets, primarily related to state NOL carryforwards. In future periods, some or all of the remaining allowance could be reversed if additional sufficient positive evidence is present indicating that it is more likely than not that a portion or all of the Company's remaining deferred tax assets will be realized.

As of February 28, 2013, the Company's deferred tax assets, net, were $475.3 million, of which $481.2 million were deferred tax assets included in Lennar Homebuilding's other assets on the Company's condensed consolidated balance sheets and $5.9 million were deferred tax liabilities included in Lennar Financial Services segment's liabilities on the Company's condensed consolidated balance sheets.

At February 28, 2013 and November 30, 2012, the Company had federal tax effected NOL carryforwards totaling $279.7 million and $278.8 million, respectively, that may be carried forward up to 20 years to offset future taxable income and begin to expire in 2025. As of February 28, 2013, the Company needs to generate $1.0 billion of pre-tax earnings in future periods to realize all of its federal NOL carryforwards and federal deductible temporary tax differences. At February 28, 2013 and November, 30, 2012, the Company had state tax effected NOL carryforwards totaling $173.5 million and $173.6 million, respectively, that may be carried forward from 5 to 20 years, depending on the tax jurisdiction, with losses expiring between 2013 and 2032. As of February 28, 2013, state NOL carryforwards totaling $7.9 million may expire over the next twelve months if sufficient taxable income is not generated to utilize the net operating losses. At February 28, 2013 and November, 30, 2012, the Company had a valuation allowance of $59.5 million and $84.6 million, respectively, against its state NOL carryforwards because the Company believes it is more likely than not that a portion of its state NOL carryforwards will not be realized due to the limited carryforward periods in certain states.

At February 28, 2013 and November 30, 2012, the Company had $8.8 million and $12.3 million of gross unrecognized tax benefits. If the Company were to recognize its gross unrecognized tax benefits as of February 28, 2013, $5.7 million would affect the Company’s effective tax rate. The Company expects the total amount of unrecognized tax benefits to decrease by $1.6 million within twelve months as a result of anticipated settlements with various taxing authorities.

During the three months ended February 28, 2013, the Company’s gross unrecognized tax benefits decreased by $3.5 million primarily as a result of state tax payments resulting from a previously settled IRS examination. The decrease in gross

14

unrecognized tax benefits had no effect on the Company’s effective tax rate, which was (6.75%). As a result of the partial reversal of the valuation allowance against the Company's deferred tax assets, the effective tax rate is not reflective of the Company's historical tax rate.

At February 28, 2013, the Company had $18.1 million accrued for interest and penalties, of which $0.4 million was recorded during the three months ended February 28, 2013. During the three months ended February 28, 2013, the accrual for interest and penalties was reduced by $2.8 million primarily as a result of the payment of interest related to state tax payments resulting from a previously settled IRS examination. At November 30, 2012, the Company had $20.5 million accrued for interest and penalties.

The IRS is currently examining the Company’s federal income tax return for fiscal year 2011 and certain state taxing authorities are examining various fiscal years. The final outcome of these examinations is not yet determinable. The statute of limitations for the Company’s major tax jurisdictions remains open for examination for fiscal year 2005 and subsequent years. The Company participates in the Compliance Assurance Process, "CAP," an IRS examination program. This program operates as a contemporaneous exam throughout the year in order to keep exam cycles current and achieve a higher level of compliance.

(6) 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”) are considered participating securities.

Basic and diluted earnings per share were calculated as follows:

	Three Months Ended
	February 28,		February 29,
(In thousands, except per share amounts)	2013		2012
Numerator:
Net earnings attributable to Lennar	$	57,492	14,968
Less: distributed earnings allocated to nonvested shares	102		115
Less: undistributed earnings allocated to nonvested shares	664		113
Numerator for basic earnings per share	56,726		14,740
Plus: interest on 2.00% convertible senior notes due 2020 and     3.25% convertible senior notes due 2021	2,826		2,911
Plus: undistributed earnings allocated to convertible shares	662		113
Less: undistributed earnings reallocated to convertible shares	588		137
Numerator for diluted earnings per share	$	59,626	17,627
Denominator:
Denominator for basic earnings per share - weighted average     common shares outstanding	189,548		185,997
Effect of dilutive securities:
Shared based payments	573		883
Convertible senior notes	35,896		26,933
Denominator for diluted earnings per share - weighted average     common shares outstanding	226,017		213,813
Basic earnings per share	$	0.30	0.08
Diluted earnings per share	$	0.26	0.08

For the three months ended February 28, 2013, there were no options to purchase shares of Class A stock that were outstanding and anti-dilutive. For three months ended February 29, 2012, options to purchase 0.3 million shares of Class A stock were outstanding and anti-dilutive.

15

(7) Lennar Financial Services Segment

The assets and liabilities related to the Lennar Financial Services segment were as follows:

(In thousands)	February 28, 2013		November 30, 2012
Assets:
Cash and cash equivalents	$	65,200	58,566
Restricted cash	12,566		12,972
Receivables, net (1)	171,580		172,230
Loans held-for-sale (2)	334,658		502,318
Loans held-for-investment, net	23,593		23,982
Investments held-to-maturity	62,746		63,924
Goodwill	34,046		34,046
Other (3)	43,776		44,957
	$	748,165	912,995
Liabilities:
Notes and other debts payable	$	311,933	457,994
Other (4)	162,616		172,978
	$	474,549	630,972

(1) Receivables, net primarily relate to loans sold to investors for which the Company had not yet been paid as of February 28, 2013 and November 30, 2012, respectively.

(2) Loans held-for-sale relate to unsold loans carried at fair value.

(3) Other assets include mortgage loan commitments carried at fair value of $12.0 million and $12.7 million as of February 28, 2013 and November 30, 2012, respectively.

(4) Other liabilities include $75.7 million and $76.1 million as of February 28, 2013 and November 30, 2012, respectively, of certain of the Company’s self-insurance reserves related to general liability and workers’ compensation. Other liabilities also include forward contracts carried at fair value of $2.1 million and $2.6 million as of February 28, 2013 and November 30, 2012, respectively.

At February 28, 2013, the Lennar Financial Services segment had a 364-day warehouse repurchase facility with a maximum aggregate commitment of $100 million and an additional uncommitted amount of $100 million that matures in February 2014, a 364-day warehouse repurchase facility with a maximum aggregate commitment of $200 million that matures in July 2013, a 364-day warehouse repurchase facility with a maximum aggregate commitment of $150 million that matures February 2014 (plus a $100 million accordion feature that is usable from 10 days prior to quarter-end through 20 days after quarter-end) and a 364-day warehouse facility with a maximum aggregate commitment of $60 million, that matures November 2013. As of February 28, 2013, the maximum aggregate commitment and uncommitted amount under these facilities totaled $610 million and $100 million, respectively.

The Lennar Financial Services segment uses these facilities to finance its lending activities until the mortgage loans are sold to investors and expects the facilities to be renewed or replaced with other facilities when they mature. Borrowings under the facilities were $311.9 million and $458.0 million at February 28, 2013 and November 30, 2012, respectively, and were collateralized by mortgage loans and receivables on loans sold to investors but not yet paid for with outstanding principal balances of $405.7 million and $509.1 million at February 28, 2013 and November 30, 2012, respectively. If the facilities are not renewed, the borrowings under the lines of credit will be paid off by selling the mortgage loans held-for-sale to investors and by collecting on receivables on loans sold but not yet paid. Without the facilities, the Lennar Financial Services segment would have to use cash from operations and other funding sources to finance its lending activities.

Substantially all of the loans the Lennar 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 agreement. There has been an increased industry-wide effort by purchasers to defray their losses during the unfavorable economic environment by purporting to have found inaccuracies related to sellers’ representations and warranties in particular loan sale agreements. The Company’s mortgage operations have established reserves for possible losses associated with mortgage loans previously originated and sold to investors. The Company establishes reserves for such possible losses based upon, among other things, an analysis of repurchase requests received, an estimate of potential repurchase claims not yet

16

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 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 Lennar Financial Services’ liabilities in the condensed consolidated balance sheets. The activity in the Company’s loan origination liabilities was as follows:

	Three Months Ended
	February 28,			February 29,
(In thousands)	2013			2012
Loan origination liabilities, beginning of period	$	7,250		6,050
Provision for losses during the period	413			93
Adjustments to pre-existing provisions for losses from changes in estimates	96			8
Payments/settlements	(153		)	(190	)
Loan origination liabilities, end of period	$	7,606		5,961

For Lennar Financial Services loans held-for-investment, net, a loan is deemed impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Interest income is not accrued or recognized on impaired loans unless payment is received. Impaired loans are written-off if and when the loan is no longer secured by collateral. The total unpaid principal balance of the impaired loans as of February 28, 2013 and November 30, 2012 was $7.8 million and $7.3 million, respectively. At February 28, 2013, the recorded investment in the impaired loans with a valuation allowance was $3.4 million, net of an allowance of $4.4 million. At November 30, 2012, the recorded investment in the impaired loans with a valuation allowance was $2.9 million, net of an allowance of $4.4 million. The average recorded investment in impaired loans totaled $3.2 million and $3.6 million for the three months ended February 28, 2013 and February 29, 2012.

17

(8) Rialto Investments Segment

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

(In thousands)	February 28, 2013		November 30, 2012
Assets:
Cash and cash equivalents	$	64,188	105,310
Defeasance cash to retire notes payable	4,655		223,813
Loans receivable, net	406,207		436,535
Real estate owned - held-for-sale	178,678		134,161
Real estate owned - held-and-used, net	547,273		601,022
Investments in unconsolidated entities	106,609		108,140
Investments held-to-maturity	15,262		15,012
Other	19,361		23,367
	$	1,342,233	1,647,360
Liabilities:
Notes payable	$	270,357	574,480
Other	14,809		26,122
	$	285,166	600,602

Rialto’s operating earnings were as follows:

	Three Months Ended
	February 28,		February 29,
(In thousands)	2013		2012
Revenues	$	25,622	32,208
Costs and expenses	31,771		33,370
Rialto Investments equity in earnings from unconsolidated entities	6,173		18,458
Rialto Investments other income (expense), net	1,327		(12,240	)
Operating earnings (1)	$	1,351	5,056

(1) Operating earnings for the three months ended February 28, 2013 and February 29, 2012 include net loss attributable to noncontrolling interests of ($0.3) million and ($4.3) million, respectively.

The following is a detail of Rialto Investments other income (expense), net for the periods indicated:

	Three Months Ended
	February 28,			February 29,
(In thousands)	2013			2012
Realized gains on REO sales, net	$	8,671		42
Unrealized gains on transfer of loans receivable to REO, net	670			1,952
REO expenses	(12,556		)	(18,074	)
Rental income	4,542			3,840
Rialto Investments other income (expense), net	$	1,327		(12,240	)

Loans Receivable

In February 2010, the Rialto segment acquired indirectly 40% managing member equity interests in two limited liability companies (“LLCs”), in partnership with the FDIC. The LLCs hold performing and non-performing loans formerly owned by 22 failed financial institutions and when the Rialto segment acquired its interests in the LLCs, the two portfolios consisted of approximately 5,500 distressed residential and commercial real estate loans (“FDIC Portfolios”). The FDIC retained 60% equity interests in the LLCs and provided $626.9 million of financing with 0% interest, which is non-recourse to the Company and the LLCs. As of February 28, 2013 and November 30, 2012, the notes payable balance was $167.2 million and $470.0 million, respectively; however, as of February 28, 2013 and November 30, 2012, $4.7 million and $223.8 million, respectively, of cash collections on loans in excess of expenses were deposited in a defeasance account, established for the repayment of the notes payable, under the agreement with the FDIC. The funds in the defeasance account are being and will be used to retire the notes payable upon their maturity. During the three months ended February 28, 2013, the LLCs retired $302.8 million principal

18

amount of the notes payable under the agreement with the FDIC through the defeasance account. In February 2013, the Rialto segment and the FDIC entered into a forbearance agreement whereby the FDIC temporarily waived its right to reissue a new purchase money note for the remaining $11.2 million balance of the portion of the notes payable that was due on February 25, 2013 until July 25, 2013. This forbearance does not meet the definition of an extension in the financing agreement and thus, no triggering event is deemed to have occurred. The Company agreed to disburse all available funds in the defeasance account on a monthly basis to the FDIC until the remaining $11.2 million balance of the portion of the notes payable that was due on February 25, 2013 was paid in full, but no later than July 25, 2013. In March 2013, the Company paid the remaining balance of the notes payable that was due on February 25, 2013 with cash disbursed from the defeasance account.

The LLCs met the accounting definition of VIEs and since the Company was determined to be the primary beneficiary, the Company consolidated the LLCs. At February 28, 2013, these consolidated LLCs had total combined assets and liabilities of $930.7 million and $188.2 million, respectively. At November 30, 2012, these consolidated LLCs had total combined assets and liabilities of $1,236.4 million and $493.4 million, respectively.

In September 2010, the Rialto segment acquired approximately 400 distressed residential and commercial real estate loans (“Bank Portfolios”) and over 300 REO properties from three financial institutions. The Company paid $310 million for the distressed real estate and real estate related assets of which $124 million was financed through a 5-year senior unsecured note provided by one of the selling institutions of which $33.0 million of principal amount was retired in 2012.

The following table displays the loans receivable by aggregate collateral type:

(In thousands)	February 28, 2013		November 30, 2012
Land	$	202,094	216,095
Single family homes	82,999		93,207
Commercial properties	89,512		96,226
Multi-family homes	17,200		12,776
Other	14,402		18,231
Loans receivable	$	406,207	436,535

With regard to loans accounted for under ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, (“ASC 310-30”), the Rialto segment estimated the cash flows, at acquisition, it expected to collect on the FDIC Portfolios and Bank Portfolios. In accordance with ASC 310-30, the difference between the contractually required payments and the cash flows expected to be collected at acquisition is referred to as the nonaccretable difference. This difference is neither accreted into income nor recorded on the Company’s condensed consolidated balance sheets. The excess of cash flows expected to be collected over the cost of the loans acquired is referred to as the accretable yield and is recognized in interest income over the remaining life of the loans using the effective yield method.

The Rialto segment periodically evaluates its estimate of cash flows expected to be collected on its FDIC Portfolios and Bank Portfolios. These evaluations require the continued use of key assumptions and estimates, similar to those used in the initial estimate of fair value of the loans to allocate purchase price. Subsequent changes in the estimated cash flows expected to be collected may result in changes in the accretable yield and nonaccretable difference or reclassifications from nonaccretable yield to accretable yield. Increases in the cash flows expected to be collected will generally result in an increase in interest income over the remaining life of the loan or pool of loans. Decreases in expected cash flows due to further credit deterioration will generally result in an impairment charge recognized as a provision for loan losses, resulting in an increase to the allowance for loan losses.

The outstanding balance and carrying value of loans accounted for under ASC 310-30 was as follows:

(In thousands)	February 28, 2013		November 30, 2012
Outstanding principal balance	$	766,840	812,187
Carrying value	$	372,105	396,200

19

The activity in the accretable yield for the FDIC Portfolios and Bank Portfolios during the three months ended February 28, 2013 and February 29, 2012 were as follows:

(In thousands)	February 28, 2013			February 29, 2012
Accretable yield, beginning of period	$	112,899		209,480
Additions	18,949			1,838
Deletions	(19,915		)	(10,635	)
Accretions	(13,845		)	(21,403	)
Accretable yield, end of period	$	98,088		179,280

Additions primarily represent reclasses from nonaccretable yield to accretable yield on the portfolios. Deletions represent loan impairments and disposal of loans, which includes foreclosure of underlying collateral and result in the removal of the loans from the accretable yield portfolios.

When forecasted principal and interest cannot be reasonably estimated at the loan acquisition date, management classifies the loan as nonaccrual and accounts for these assets in accordance with ASC 310-10, Receivables (“ASC 310-10”). When a loan is classified as nonaccrual, any subsequent cash receipt is accounted for using the cost recovery method. In accordance with ASC 310-10, a loan is considered impaired when based on current information and events it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected. Although these loans met the definition of ASC 310-10, these loans were not considered impaired relative to the Company’s recorded investment at the time of acquisition since they were acquired at a substantial discount to their unpaid principal balance. A provision for loan losses is recognized when the recorded investment in the loan is in excess of its fair value. The fair value of the loan is determined by using either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral less estimated costs to sell.

The following tables represent nonaccrual loans in the FDIC Portfolios and Bank Portfolios accounted for under ASC 310-10 aggregated by collateral type:

February 28, 2013

			Recorded Investment
(In thousands)	Unpaid Principal Balance		With Allowance	Without Allowance	Total  Recorded Investment
Land	$	8,659	2,429	1,321	3,750
Single family homes	17,748		6,730	2,316	9,046
Commercial properties	32,638		692	20,614	21,306
Loans receivable	$	59,045	9,851	24,251	34,102

November 30, 2012

			Recorded Investment
(In thousands)	Unpaid Principal  Balance		With Allowance	Without Allowance	Total  Recorded Investment
Land	$	23,163	4,983	2,844	7,827
Single family homes	18,966		8,311	2,244	10,555
Commercial properties	35,996		1,006	20,947	21,953
Loans receivable	$	78,125	14,300	26,035	40,335

The average recorded investment in impaired loans totaled approximately $37 million and $69 million for the three months ended February 28, 2013 and February 29, 2012, respectively.

The loans receivable portfolios consist of loans acquired at a discount. Based on the nature of these loans, the portfolios are managed by assessing the risks related to the likelihood of collection of payments from borrowers and guarantors, as well as monitoring the value of the underlying collateral. The following are the risk categories for the loans receivable portfolios:

Accrual — Loans in which forecasted cash flows under the loan agreement, as it might be modified from time to time, can be reasonably estimated at the date of acquisition. The risk associated with loans in this category relates to the possible default by the borrower with respect to principal and interest payments and the possible decline in value of the underlying

20

collateral and thus, both could cause a decline in the forecasted cash flows used to determine accretable yield income and the recognition of an impairment through an allowance for loan losses. As of February 28, 2013, the Company had an allowance on these loans of $16.9 million. During the three months ended February 28, 2013, the Company recorded $6.1 million of provision for loan losses offset by charge-offs of $1.4 million upon resolution of the loans. As of November 30, 2012, the Company had an allowance on these loans of $12.2 million. During the three months ended February 29, 2012, the Company did not record any provision for loan losses or charge-offs on these loans.

Nonaccrual — Loans in which forecasted principal and interest could not be reasonably estimated at the date of acquisition. Although the Company believes the recorded investment balance will ultimately be realized, the risk of nonaccrual loans relates to a decline in the value of the collateral securing the outstanding obligation and the recognition of an impairment through an allowance for loan losses if the recorded investment in the loan exceeds the fair value of the collateral less estimated cost to sell. As of February 28, 2013 and November 30, 2012, the Company had an allowance on these loans of $1.7 million and $3.7 million, respectively. During the three months ended February 28, 2013 and February 29, 2012, the Company recorded $1.0 million and $0.9 million, respectively, of provision for loan losses offset by charge-offs of $3.0 million and $1.6 million, respectively, upon foreclosure of the loans.

Accrual and nonaccrual loans receivable by risk categories were as follows:

February 28, 2013

(In thousands)	Accrual		Nonaccrual	Total
Land	$	198,344	3,750	202,094
Single family homes	73,953		9,046	82,999
Commercial properties	68,206		21,306	89,512
Multi-family homes	17,200		—	17,200
Other	14,402		—	14,402
Loans receivable	$	372,105	34,102	406,207

November 30, 2012

(In thousands)	Accrual		Nonaccrual	Total
Land	$	208,268	7,827	216,095
Single family homes	82,652		10,555	93,207
Commercial properties	74,273		21,953	96,226
Multi-family homes	12,776		—	12,776
Other	18,231		—	18,231
Loans receivable	$	396,200	40,335	436,535

In order to assess the risk associated with each risk category, the Rialto segment evaluates the forecasted cash flows and the value of the underlying collateral securing loans receivable on a quarterly basis or when an event occurs that suggest a decline in the collateral’s fair value.

Real Estate Owned

The acquisition of properties acquired through, or in lieu of, loan foreclosure are reported within the condensed consolidated balance sheets as REO held-and-used, net and REO held-for-sale. When a property is determined to be held-and-used, net, the asset is recorded at fair value and depreciated over its useful life using the straight line method. When certain criteria set forth in ASC 360, Property, Plant and Equipment, are met; the property is classified as held-for-sale. When a real estate asset is classified as held-for-sale, the property is recorded at the lower of its cost basis or fair value less estimated costs to sell. The fair value of REO held-for-sale are determined in part by placing reliance on third party appraisals of the properties and/or internally prepared analyses of recent offers or prices on comparable properties in the proximate vicinity.

Upon the acquisition of REO through loan foreclosure, gains and losses are recorded in Rialto Investments other income (expense), net. The amount by which the recorded investment in the loan is less than the REO’s fair value (net of estimated cost to sell if held-for-sale), is recorded as an unrealized gain upon foreclosure. The amount by which the recorded investment in the loan is greater than the REO’s fair value (net of estimated cost to sell if held-for-sale) is generally recorded as a provision for loan losses.

21

At times, the Company may foreclose on a loan from an accrual loan pool in which the removal of the loan does not cause an overall decrease in the expected cash flows of the loan pool, and as such, no provision for loan losses is required to be recorded. However, the amount by which the recorded investment in the loan is greater than the REO’s fair value (net of estimated cost to sell if held-for-sale) is recorded as an unrealized loss upon foreclosure.

The following tables present the activity in REO: 

	Three Months Ended
	February 28,			February 29,
(In thousands)	2013			2012
REO - held-for-sale, beginning of period	$	134,161		143,677
Additions	594			1,134
Improvements	1,016			3,963
Sales	(25,780		)	(36,844	)
Impairments	(699		)	(1,240	)
Transfers to/from held-and-used, net (1)	69,386			(9,111	)
REO - held-for-sale, end of period	$	178,678		101,579

	Three Months Ended
	February 28,			February 29,
(In thousands)	2013			2012
REO - held-and-used, net, beginning of period	$	601,022		582,111
Additions	16,192			46,241
Improvements	700			—
Sales	—			(981	)
Impairments	(96		)	(2,597	)
Depreciation	(1,159		)	(3,315	)
Transfers to/from held-for-sale (1)	(69,386		)	9,111
REO - held-and-used, net, end of period	$	547,273		630,570

(1) During the three months ended February 28, 2013 and February 29, 2012, the Rialto segment transferred certain properties to/from REO held-and-used, net to/from REO held-for-sale as a result of changes in the disposition strategy of the real estate assets.

For the three months ended February 28, 2013, the Company recorded $8.7 million of net gains from sales of REO. For the three months ended February 28, 2013 and February 29, 2012, the Company recorded net gains of $1.5 million and $5.8 million, respectively, from acquisitions of REO through foreclosure. These net gains are recorded in Rialto Investments other income (expense), net.

Investments

In 2010, the Rialto segment invested in approximately $43 million of non-investment grade commercial mortgage-backed securities (“CMBS”) for $19.4 million, representing a 55% discount to par value. The CMBS have a stated and assumed final distribution date of November 2020 and a stated maturity date of October 2057. The Rialto segment reviews changes in estimated cash flows periodically, to determine if other-than-temporary impairment has occurred on its investment securities. Based on the Rialto segment’s assessment, no impairment charges were recorded during both the three months ended February 28, 2013 and February 29, 2012.The carrying value of the investment securities at February 28, 2013 and November 30, 2012, was $15.3 million and $15.0 million, respectively. The Rialto segment classified these securities as held-to-maturity based on its intent and ability to hold the securities until maturity.

In 2010, 2011 and 2012, the Rialto segment obtained investors in Fund I who made equity commitments of $700 million (including $75 million committed by the Company). All capital commitments have been called and funded, and Fund I is closed to additional commitments. Fund I was determined to have the attributes of an investment company in accordance with ASC 946, Financial Services – Investment Companies, the attributes of which are different from the attributes that would cause a company to be an investment company for purposes of the Investment Company Act of 1940. As a result, Fund I’s assets and liabilities are recorded at fair value with increases/decreases in fair value recorded in the statement of operations of Fund I, the

22

Company’s share of which are recorded in the Rialto Investments equity in earnings from unconsolidated entities financial statement line item.

During the three months ended February 28, 2013, the Company received distributions of $7.7 million as a return of capital. During the three months ended February 29, 2012, the Company contributed $7.3 million to Fund I. As of February 28, 2013 and November 30, 2012, the carrying value of the Company’s investment in Fund I was $97.6 million and $98.9 million, respectively. For the three months ended February 28, 2013 and February 29, 2012, the Company’s share of earnings from Fund I was $6.4 million and $7.6 million, respectively.

Additionally, another subsidiary in the Rialto segment has approximately a 5% investment in a service and infrastructure provider to the residential home loan market (the “Servicer Provider”), which provides services to the consolidated LLCs, among others. As of both February 28, 2013 and November 30, 2012, the carrying value of the Company’s investment in the Servicer Provider was $8.4 million.

In December 2012, the Rialto segment completed the first closing of and Real Estate Fund II, LP ("Fund II") with initial equity commitments of approximately $260 million, including $100 million committed by the Company. No cash was funded at the time of the closing. Fund II's objective during its three-year investment period is to invest in distressed real estate assets and other related investments that fit Fund II's investment parameters. In March 2013, $75 million of the $260 million in equity commitments was called, of which, the Company contributed its portion of approximately $29 million.

Summarized condensed financial information on a combined 100% basis related to Rialto’s investments in unconsolidated entities that are accounted for by the equity method was as follows:

Balance Sheets

(In thousands)	February 28, 2013		November 30, 2012
Assets:
Cash and cash equivalents	$	82,820	299,172
Loans receivable	388,033		361,286
Real estate owned	187,413		161,964
Investment securities	234,505		182,399
Investments in real estate partnerships	127,931		72,903
Other assets	182,528		199,839
	$	1,203,230	1,277,563
Liabilities and equity:
Accounts payable and other liabilities	$	145,115	155,928
Notes payable	80,213		120,431
Partner loans	163,516		163,516
Equity	814,386		837,688
	$	1,203,230	1,277,563

Statements of Operations

	Three Months Ended
	February 28,		February 29,
(In thousands)	2013		2012
Revenues	$	53,343	122,405
Costs and expenses	59,114		51,185
Other income, net (1)	56,001		266,440
Net earnings of unconsolidated entities	$	50,230	337,660
Rialto Investments equity in earnings from unconsolidated entities	$	6,173	18,458

(1) Other income, net, for the three months ended February 29, 2012 includes the AB PPIP Fund's mark-to-market unrealized gains and unrealized losses, all of which the Company’s portion is a small percentage.

23

(9) Lennar Homebuilding Cash and Cash Equivalents

Cash and cash equivalents as of February 28, 2013 and November 30, 2012 included $134.1 million and $193.0 million, respectively, of cash held in escrow for approximately three days.

(10) Lennar Homebuilding Restricted Cash

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.

(11) Lennar Homebuilding Senior Notes and Other Debts Payable

(Dollars in thousands)	February 28, 2013		November 30, 2012
5.95% senior notes due 2013	$	62,932	62,932
5.50% senior notes due 2014	249,294		249,294
5.60% senior notes due 2015	500,651		500,769
6.50% senior notes due 2016	249,868		249,851
4.75% senior notes due 2017	400,000		400,000
12.25% senior notes due 2017	394,871		394,457
4.125% senior notes due 2018	274,995		—
6.95% senior notes due 2018	248,017		247,873
2.00% convertible senior notes due 2020	276,500		276,500
2.75% convertible senior notes due 2020	405,331		401,787
3.25% convertible senior notes due 2021	400,000		400,000
4.750% senior notes due 2022	521,628		350,000
Mortgages notes on land and other debt	521,575		471,588
	$	4,505,662	4,005,051

At February 28, 2013, the Company had a $150 million Letter of Credit and Reimbursement Agreement ("LC Agreement") with certain financial institutions, which may be increased to $200 million, but for which there are currently no commitments for the additional $50 million. In addition, at February 28, 2013, the Company also had a $50 million Letter of Credit and Reimbursement Agreement with certain financial institutions that had a $50 million accordion feature for which there are currently no commitments, and a $200 million Letter of Credit Facility with a financial institution. Additionally, in May 2012, the Company entered into a 3-year unsecured revolving credit facility (the "Credit Facility") with certain financial institutions that expires in May 2015. As of February 28, 2013, the maximum aggregate commitment under the Credit Facility was $525 million, of which $500 million was committed and $25 million was available through an accordion feature, subject to additional commitments. As of February 28, 2013, the Company had no outstanding borrowings under the Credit Facility. The Company believes it was in compliance with its debt covenants at February 28, 2013.

The Company’s performance letters of credit outstanding were $115.8 million and $107.5 million, respectively, at February 28, 2013 and November 30, 2012. The Company’s financial letters of credit outstanding were $209.0 million and $204.7 million, respectively, at February 28, 2013 and November 30, 2012. Performance letters of credit are generally posted with regulatory bodies to guarantee the Company’s performance of certain development and construction activities, and 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 February 28, 2013, the Company had outstanding performance and surety bonds related to site improvements at various projects (including certain projects in the Company’s joint ventures) of $614.7 million. 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 February 28, 2013, there were approximately $360.6 million, or 59%, 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.

During the three months ended February 28, 2013, the Company issued $275 million aggregate principal amount of 4.125% senior notes due 2018 (the "4.125% Senior Notes") at a price of 99.998% in a private placement and an additional $175

24

million aggregate principal amount of its 4.750% senior notes due 2022 ("4.750% Senior Notes") at a price of 98.073% in a private placement. Proceeds from the offerings, after payment of expenses, were $272.0 million and $172.2 million, respectively. The Company will use the net proceeds of the sale of the 4.125% Senior Notes and the 4.750% Senior Notes for working capital and general corporate purposes, which may include repayment or repurchase of its other outstanding senior notes. Interest on the 4.125% Senior Notes is due semi-annually beginning September 15, 2013. The 4.125% Senior Notes are unsecured and unsubordinated, but are guaranteed by substantially all of the Company's 100% owned homebuilding subsidiaries. Interest on the 4.750% Senior Notes is due semi-annually beginning May 15, 2013. The 4.750% Senior Notes are unsecured and unsubordinated, but are guaranteed by substantially all of the Company's 100% owned homebuilding subsidiaries. At February 28, 2013, the carrying amount of the 4.125% Senior Notes was $275.0 million. At February 28, 2013 and November 30, 2012, the carrying amount of the 4.750% Senior Notes was $521.6 million and $350.0 million, respectively.

In November 2011, the Company issued $350 million aggregate principal amount of 3.25% convertible senior notes due 2021 (the “3.25% Convertible Senior Notes”). During the three months ended February 29, 2012, the initial purchasers of the 3.25% Convertible Senior Notes purchased an additional $50 million aggregate principal amount to cover over-allotments. At both February 28, 2013 and November 30, 2012, the carrying and principal amount of the 3.25% Convertible Senior Notes was $400.0 million. The 3.25% Convertible Senior Notes are convertible into shares of Class A common stock at any time prior to maturity or redemption at the initial conversion rate of 42.5555 shares of Class A common stock per $1,000 principal amount of the 3.25% Convertible Senior Notes or 17,022,200 Class A common shares if all the 3.25% Convertible Senior Notes are converted, which is equivalent to an initial conversion price of approximately $23.50 per share of Class A common stock, subject to anti-dilution adjustments. The shares are included in the calculation of diluted earnings per share. Holders of the 3.25% Convertible Senior Notes have the right to require the Company to repurchase them for cash equal to 100% of their principal amount, plus accrued but unpaid interest on November 15, 2016.The Company has the right to redeem the 3.25% Convertible Senior Notes at any time on or after November 20, 2016 for 100% of their principal amount, plus accrued but unpaid interest. The 3.25% Convertible Senior Notes are unsecured and unsubordinated, but are guaranteed by substantially all of the Company's 100% owned homebuilding subsidiaries.

The 2.75% convertible senior notes due 2020 (the “2.75% Convertible Senior Notes”) are convertible into cash, shares of Class A common stock or a combination of both, at the Company’s election. However, it is the Company’s intent to settle the face value of the 2.75% Convertible Senior Notes in cash. Prior to the second quarter of 2012, the shares were not historically included in the calculation of diluted earnings per share primarily because it is the Company’s intent to settle the face value of the 2.75% Convertible Senior Notes in cash and the Company's volume weighted average stock price did not exceed the conversion price. However, the Company’s volume weighted average stock price for the three months ended February 28, 2013 was $39.54, which exceeded the conversion price, thus 8.9 million shares were included in the calculation of diluted earnings per share. Holders may convert the 2.75% Convertible Senior Notes at the initial conversion rate of 45.1794 shares of Class A common stock per $1,000 principal amount or 20,150,012 Class A common shares if all the 2.75% Convertible Senior Notes are converted, which is equivalent to an initial conversion price of approximately $22.13 per share of Class A common stock. Holders of the 2.75% Convertible Senior Notes have the right to require the Company to repurchase them for cash equal to 100% of their principal amount, plus accrued but unpaid interest, on December 15, 2015.The Company has the right to redeem the 2.75% Convertible Senior Notes at any time on or after December 20, 2015 for 100% of their principal amount, plus accrued but unpaid interest. The 2.75% Convertible Senior Notes are unsecured and unsubordinated, but are guaranteed by substantially all of the Company's 100% owned homebuilding subsidiaries.

Certain provisions under ASC 470, Debt, require the issuer of certain convertible debt instruments that may be settled in cash on conversion to separately account for the liability and equity components of the instrument in a manner that reflects the issuer’s non-convertible debt borrowing rate. The Company has applied these provisions to its 2.75% Convertible Senior Notes. At both February 28, 2013 and November 30, 2012, the principal amount of the 2.75% Convertible Senior Notes was $446.0 million. At February 28, 2013 and November 30, 2012, the carrying amount of the equity component included in stockholders’ equity was $40.7 million and $44.2 million, respectively, and the net carrying amount of the 2.75% Convertible Senior Notes included in Lennar Homebuilding senior notes and other debts payable was $405.3 million and $401.8 million, respectively.

The 2.00% convertible senior notes due 2020 (the “2.00% Convertible Senior Notes”) are convertible into shares of Class A common stock at the initial conversion rate of 36.1827 shares of Class A common stock per $1,000 principal amount of the 2.00% Convertible Senior Notes or 10,004,517 Class A common shares if all the 2.00% Convertible Senior Notes are converted, which is equivalent to an initial conversion price of approximately $27.64 per share of Class A common stock, subject to anti-dilution adjustments. The shares are included in the calculation of diluted earnings per share. At both February 28, 2013 and November 30, 2012, the carrying and principal amount of the 2.00% Convertible Senior Notes was $276.5 million. Holders of the 2.00% Convertible Senior Notes have the right to require the Company to repurchase them for cash equal to 100% of their principal amount, plus accrued but unpaid interest, on each of December 1, 2013 and December 1, 2015.The Company has the right to redeem the 2.00% Convertible Senior Notes at any time on or after December 1, 2013 for

25

100% of their principal amount, plus accrued but unpaid interest. The 2.00% Convertible Senior Notes are unsecured and unsubordinated, but are guaranteed by substantially all of the Company's 100% owned homebuilding subsidiaries.

Although the guarantees by substantially all of the Company's 100% owned homebuilding subsidiaries 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.

(12) 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 other liabilities in the accompanying condensed consolidated balance sheets. The activity in the Company’s warranty reserve was as follows:

	Three Months Ended
	February 28,			February 29,
(In thousands)	2013			2012
Warranty reserve, beginning of period	$	84,188		88,120
Warranties issued during the period	8,759			6,855
Adjustments to pre-existing warranties from changes in estimates	2,949			1,367
Payments	(10,688		)	(10,625	)
Warranty reserve, end of period	$	85,208		85,717

As of February 28, 2013, the Company has identified approximately 1,010 homes delivered in Florida primarily during its 2006 and 2007 fiscal years that are confirmed to have had defective Chinese drywall and resulting damage. This represents a small percentage of homes the Company delivered nationally (1.2%) during those fiscal years. Defective Chinese drywall is an industry-wide issue as other homebuilders have publicly disclosed that they have experienced similar issues with defective Chinese drywall. Based on its efforts to date, the Company has not identified defective Chinese drywall in homes delivered by the Company outside of Florida. The Company has offered to replace defective Chinese drywall when it has been found in homes the Company has built, and has done so in substantially all affected homes. Drywall claims for approximately 40 of the 1,010 homes will be resolved through settlement of the drywall multi-district class action litigation in the United States District Court for the Eastern District of Louisiana.

Through February 28, 2013, the Company has accrued $82.2 million of warranty reserves related to defective Chinese drywall. There were no additional amounts accrued during the three months ended February 28, 2013. As of February 28, 2013 and November 30, 2012, the warranty reserve related to Chinese drywall, net of payments, was $2.5 million and $2.9 million, respectively. The Company has received, and continues to seek, reimbursement from its subcontractors, insurers and others for costs the Company has incurred or expects to incur to investigate and repair defective Chinese drywall and resulting damage.

26

(13) Share-Based Payment

During the three months ended February 28, 2013, the Company did not grant any stock options or nonvested shares. During the three months ended February 29, 2012, the Company did not grant any stock options and granted an immaterial number of nonvested shares. Compensation expense related to the Company’s share-based payment awards was as follows:

	Three Months Ended
	February 28,		February 29,
(In thousands)	2013		2012
Stock options	$	—	885
Nonvested shares	6,486		7,276
Total compensation expense for share-based awards	$	6,486	8,161

(14) Financial Instruments

The following table presents the carrying amounts and estimated fair values of financial instruments held by the Company at February 28, 2013 and November 30, 2012, 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, defeasance cash to retire notes payable, receivables, net and accounts payable, all of which had fair values approximating their carrying amounts due to the short maturities of these instruments.

		February 28, 2013			November 30, 2012
	Fair Value	Carrying		Fair	Carrying	Fair
(In thousands)	Hierarchy	Amount		Value	Amount	Value
ASSETS
Rialto Investments:
Loans receivable, net	Level 3	$	406,207	426,366	436,535	450,281
Investments held-to-maturity	Level 3	$	15,262	15,159	15,012	14,904
Lennar Financial Services:
Loans held-for-investment, net	Level 3	$	23,593	25,274	23,982	24,949
Investments held-to-maturity	Level 2	$	62,746	62,796	63,924	63,877
LIABILITIES
Lennar Homebuilding:
Senior notes and other debts payable	Level 2	$	4,505,662	5,545,976	4,005,051	5,035,670
Rialto Investments:
Notes payable	Level 2	$	270,357	264,484	574,480	568,702
Lennar Financial Services:
Notes and other debts payable	Level 2	$	311,933	311,933	457,994	457,994

The following methods and assumptions are used by the Company in estimating fair values:

Lennar Homebuilding—For senior notes and other debts payable, the fair value of fixed-rate borrowings is 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.

Rialto Investments—The fair values for loans receivable is based on discounted cash flows, or the fair value of the collateral less estimated cost to sell. The fair value for investments held-to-maturity is based on discounted cash flows. For notes payable, the fair value of the zero percent interest notes guaranteed by the FDIC was calculated based on a 2-year treasury yield, and the fair value of other notes payable was calculated based on discounted cash flows using the Company’s weighted average borrowing rate.

Lennar 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.

27

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:

Financial Instruments	Fair Value Hierarchy	Fair Value at February 28, 2013			Fair Value at November 30, 2012
(In thousands)
Lennar Financial Services:
Loans held-for-sale (1)	Level 2	$	334,658		502,318
Mortgage loan commitments	Level 2	$	12,008		12,713
Forward contracts	Level 2	$	(2,128	)	(2,570	)
Lennar Homebuilding:
Investments available-for-sale	Level 3	$	31,818		19,591

(1) The aggregate fair value of loans held-for-sale of $334.7 million at February 28, 2013 exceeds their aggregate principal balance of $322.3 million by $12.4 million. The aggregate fair value of loans held-for-sale of $502.3 million at November 30, 2012 exceeds their aggregate principal balance of $479.1 million by $23.2 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:

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 is included in Lennar Financial Services’ loans held-for-sale as of February 28, 2013 and November 30, 2012. Fair value of servicing rights is determined based on actual sales of servicing rights on loans with similar characteristics.

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 Lennar Financial Services segment has committed to originate the loans. The fair value of commitments to sell loan contracts is the estimated amount that the Lennar Financial Services segment would receive or pay to terminate the commitments at the reporting date based on market prices for similar financial instruments.

Forward contracts— Fair value is based on quoted market prices for similar financial instruments.

Investments available-for-sale— The fair value of these investments are based on third party valuations.

28

Gains and losses of Lennar Financial Services financial instruments measured at fair value from initial measurement and subsequent changes in fair value are recognized in the Lennar Financial Services segment’s operating earnings. There were no gains or losses recognized for the Lennar Homebuilding investments available-for-sale during the three months ended February 28, 2013 and February 29, 2012. The changes in fair values that are included in operating earnings are shown, by financial instrument and financial statement line item below:

	Three Months Ended
	February 28,			February 29,
(In thousands)	2013			2012
Changes in fair value included in Lennar Financial Services revenues:
Loans held-for-sale	$	(10,780	)	(1,307	)
Mortgage loan commitments	$	(705	)	1,442
Forward contracts	$	442		735

Interest income on loans held-for-sale measured at fair value is calculated based on the interest rate of the loan and recorded in interest income in the Lennar Financial Services’ statement of operations.

The following table represents a reconciliation of the beginning and ending balance for the Company’s Level 3 recurring fair value measurements (investments available-for-sale) included in the Lennar Homebuilding segment’s other assets:

	Three Months Ended
(In thousands)	February 28, 2013		February 29, 2012
Investments available-for-sale, beginning of period	$	19,591	42,892
Purchases and other (1)	12,227		14,928
Sales	—		(6,436	)
Settlements (2)	—		(33,148	)
Investments available-for-sale, end of period	$	31,818	18,236

(1) Represents investments in community development district bonds that mature at various dates between 2022 and 2042.

(2) The investments available-for-sale that were settled during the three months ended February 29, 2012 related to investments in community development district bonds, which were in default by the borrower and regarding which the Company foreclosed on the underlying real estate collateral. Therefore, these investments were reclassified from other assets to land and land under development.

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 and Rialto Investments real estate owned assets. The fair value included in the tables below represent only those assets whose carrying value were adjusted to fair value during the respective periods disclosed. The assets measured at fair value on a nonrecurring basis are summarized below:

Non-financial assets	Fair Value Hierarchy	Fair Value Three Months Ended February 28, 2013		Total Gains (Losses) (1)
(In thousands)
Lennar Homebuilding:
Finished homes and construction in progress (2)	Level 3	$	2,941	(1,255	)
Rialto Investments:
REO - held-for-sale (3)	Level 3	$	8,447	(271	)
REO - held-and-used, net (4)	Level 3	$	18,211	941

(1) Represents total losses due to valuation adjustments, total gains from acquisitions of real estate through foreclosure and REO impairments recorded during the three months ended February 28, 2013.

(2) Finished homes and construction in progress with an aggregate carrying value of $4.2 million were written down to their fair value of $2.9 million, resulting in valuation adjustments of $1.3 million, which were included in Lennar Homebuilding costs and expenses in the Company’s statement of operations for the three months ended February 28, 2013.

(3) REO, held-for-sale, assets are initially recorded at fair value less estimated costs to sell at the time of acquisition through, or in lieu of, loan foreclosure. Upon acquisition, the REO, held-for-sale, had a carrying value of $0.2 million and a fair value of $0.6 million. The fair value of REO, held-for-sale, is based upon the appraised value at the time of foreclosure or

29

management’s best estimate. The gains upon acquisition of REO, held-for-sale, were $0.4 million. As part of management’s periodic valuations of its REO, held-for-sale, during the three months ended February 28, 2013, REO, held-for-sale, with an aggregate value of $8.5 million were written down to their fair value of $7.8 million, resulting in impairments of $0.7 million. These gains and impairments are included within Rialto Investments other income (expense), net, in the Company’s statement of operations for the three months ended February 28, 2013.

(4) REO, held-and-used, net, assets are initially recorded at fair value at the time of acquisition through, or in lieu of, loan foreclosure. Upon acquisition, the REO, held-and-used, net, had a carrying value of $15.2 million and a fair value of $16.2 million. The fair value of REO, held-and-used, net, is based upon the appraised value at the time of foreclosure or management’s best estimate. The gains upon acquisition of REO, held-and-used, net, were $1.0 million. As part of management’s periodic valuations of its REO, held-and-used, net, during the three months ended February 28, 2013, REO, held-and-used, net, with an aggregate value of $2.1 million were written down to their fair value of $2.0 million, resulting in impairments of $0.1 million. These gains and impairments are included within Rialto Investments other income (expense), net, in the Company’s statement of operations for the three months ended February 28, 2013.

Non-financial assets	Fair Value Hierarchy	Fair Value Three Months Ended February 29, 2012		Total Gains (Losses) (1)
(In thousands)
Lennar Homebuilding:
Finished homes and construction in progress (2)	Level 3	$	1,548	(2,025	)
Rialto Investments:
REO - held-for-sale (3)	Level 3	$	11,423	(462	)
REO - held-and-used, net (4)	Level 3	$	54,289	2,414

(1) Represents total losses due to valuation adjustments, total gains from acquisitions of real estate through foreclosure and REO impairments recorded during the three months ended February 29, 2012.

(2) Finished homes and construction in progress with an aggregate carrying value of $3.5 million were written down to their fair value of $1.5 million, resulting in valuation adjustments of $2.0 million, which were included in Lennar Homebuilding costs and expenses in the Company’s statement of operations for the three months ended February 29, 2012.

(3) REO, held-for-sale, assets are initially recorded at fair value less estimated costs to sell at the time of acquisition through, or in lieu of, loan foreclosure. Upon acquisition, the REO, held-for-sale, had a carrying value of $0.3 million and a fair value of $1.1 million. The fair value of REO, held-for-sale, is based upon the appraised value at the time of foreclosure or management’s best estimate. The gains upon acquisition of REO, held-for-sale, were $0.8 million. As part of management's periodic valuations of its REO, held-for-sale, during the three months ended February 29, 2012, REO, held-for-sale, with an aggregate value of $11.5 million were written down to their fair value of $10.3 million, resulting in impairments of $1.2 million. These gains and impairments are included within Rialto Investments other income (expense), net in the Company's statement of operations for the three months ended February 29, 2012.

(4) REO, held-and-used, net, assets are initially recorded at fair value at the time of acquisition through, or in lieu of, loan foreclosure. Upon acquisition, the REO, held-and-used, net, had a carrying value of $41.2 million and a fair value of $46.2 million. The fair value of REO, held-and-used, net, is based upon the appraised value at the time of foreclosure or management’s best estimate. The gains upon acquisition of REO, held-and-used, net, were $5.0 million. As part of management's periodic valuations of its REO, held-and-used, net, during the three months ended February 29, 2012, REO, held-and-used, net, with an aggregate value of $10.6 million were written down to their fair value of $8.0 million, resulting in impairments of $2.6 million. These gains and impairments are included within the Rialto Investments other income (expense), net, in the Company’s statement of operations for the three months ended February 29, 2012.

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. Inventory costs include land, land development and home construction costs, real estate taxes, deposits on land purchase contracts and interest related to development and construction. Construction overhead and selling expenses are expensed as incurred. Homes held-for-sale are classified as inventories until delivered. Land, land development, amenities and other costs are accumulated by specific area and allocated to homes within the respective areas. The Company reviews its inventory for indicators of impairment by evaluating each community during each reporting period. The inventory within each community is categorized as finished homes and construction in progress or land under development based on the development state of the community. There were 482 and 424 active communities, excluding unconsolidated entities, as of February 28, 2013 and February 29, 2012, respectively. If the undiscounted cash flows expected to be generated by a community are less than its carrying amount, an impairment charge is recorded to write down the carrying amount of such community to its estimated fair

30

value.

In conducting its review for indicators of impairment on a community level, the Company evaluates, among other things, the margins on homes that have been delivered, margins on homes under sales contracts in backlog, projected margins with regard to future home sales over the life of the community, projected margins with regard to future land sales and the estimated fair value of the land itself. The Company pays particular attention to communities in which inventory is moving at a slower than anticipated absorption pace and communities whose average sales price and/or margins are trending downward and are anticipated to continue to trend downward. From this review, the Company identifies communities whose carrying values exceed their undiscounted cash flows.

The Company estimates the fair value of its communities using a discounted cash flow model. The projected cash flows for each community are significantly impacted by estimates related to market supply and demand, product type by community, homesite sizes, sales pace, sales prices, sales incentives, construction costs, sales and marketing expenses, the local economy, competitive conditions, labor costs, costs of materials and other factors for that particular community. Every division evaluates the historical performance of each of its communities as well as current trends in the market and economy impacting the community and its surrounding areas. These trends are analyzed for each of the estimates listed above. For example, since the start of the downturn in the housing market, the Company has found ways to reduce its construction costs in many communities, and this reduction in construction costs in addition to change in product type in many communities has impacted future estimated cash flows.

Each of the homebuilding markets in which the Company operates is unique, as homebuilding has historically been a local business driven by local market conditions and demographics. Each of the Company’s homebuilding markets has specific supply and demand relationships reflective of local economic conditions. The Company’s projected cash flows are impacted by many assumptions. Some of the most critical assumptions in the Company’s cash flow model are projected absorption pace for home sales, sales prices and costs to build and deliver homes on a community by community basis.

In order to arrive at the assumed absorption pace for home sales included in the Company’s cash flow model, the Company analyzes its historical absorption pace in the community as well as other comparable communities in the geographical area. In addition, the Company considers internal and external market studies and trends, which generally include, but are not limited to, statistics on population demographics, unemployment rates and availability of competing product in the geographic area where the community is located. When analyzing the Company’s historical absorption pace for home sales and corresponding internal and external market studies, the Company places greater emphasis on more current metrics and trends such as the absorption pace realized in its most recent quarters as well as forecasted population demographics, unemployment rates and availability of competing product. Generally, if the Company notices a variation from historical results over a span of two fiscal quarters, the Company considers such variation to be the establishment of a trend and adjusts its historical information accordingly in order to develop assumptions on the projected absorption pace in the cash flow model for a community.

In order to determine the assumed sales prices included in its cash flow models, the Company analyzes the historical sales prices realized on homes it delivered in the community and other comparable communities in the geographical area as well as the sales prices included in its current backlog for such communities. In addition, the Company considers internal and external market studies and trends, which generally include, but are not limited to, statistics on sales prices in neighboring communities and sales prices on similar products in non-neighboring communities in the geographic area where the community is located. When analyzing its historical sales prices and corresponding market studies, the Company also places greater emphasis on more current metrics and trends such as future forecasted sales prices in neighboring communities as well as future forecasted sales prices for similar products in non-neighboring communities. Generally, if the Company notices a variation from historical results over a span of two fiscal quarters, the Company considers such variation to be the establishment of a trend and adjusts its historical information accordingly in order to develop assumptions on the projected sales prices in the cash flow model for a community.

In order to arrive at the Company’s assumed costs to build and deliver homes, the Company generally assumes a cost structure reflecting contracts currently in place with its vendors adjusted for any anticipated cost reduction initiatives or increases in cost structure. Costs assumed in the cash flow model for the Company’s communities are generally based on the rates the Company is currently obligated to pay under existing contracts with its vendors adjusted for any anticipated cost reduction initiatives or increases in cost structure.

Since the estimates and assumptions included in the Company’s cash flow models are based upon historical results and projected trends, they do not anticipate unexpected changes in market conditions or strategies that may lead the Company to incur additional impairment charges in the future.

Using all available information, the Company calculates its best estimate of projected cash flows for each community. While many of the estimates are calculated based on historical and projected trends, all estimates are subjective and change

31

from market to market and community to community as market and economic conditions change. The determination of fair value also requires discounting the estimated cash flows at a rate the Company believes a market participant would determine to be commensurate with the inherent risks associated with the assets and related estimated cash flow streams. The discount rate used in determining each asset’s fair value depends on the community’s projected life and development stage. The Company generally uses a discount rate of approximately 20%, subject to the perceived risks associated with the community’s cash flow streams relative to its inventory.

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, further market deterioration or changes in assumptions may lead to the Company incurring additional impairment charges on previously impaired inventory, as well as on inventory not currently impaired but for which indicators of impairment may arise if further market deterioration occurs.

In the three months ended February 28, 2013, the Company reviewed its communities for potential indicators of impairments and identified 24 communities with 759 homesites and a corresponding carrying value of $44.7 million as having potential indicators of impairment. Of those communities identified, the Company recorded impairments on 32 homesites in 3 communities with a corresponding carrying value of $4.2 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 three months ended February 28, 2013:

Unobservable inputs	Range
Average selling price		$163,000	-	$279,000
Absorption rate per quarter (homes)	2		-	12
Discount rate	20%

The Company evaluates its investments in unconsolidated entities for indicators of impairment during each reporting period. A series of operating losses of an investee or other factors may indicate that a decrease in value of the Company’s investment in the unconsolidated entity has occurred which is other-than-temporary. The amount of impairment recognized is the excess of the investment’s carrying amount over its estimated fair value.

The evaluation of the Company’s investment in unconsolidated entities includes certain critical assumptions made by management: (1) projected future distributions from the unconsolidated entities, (2) discount rates applied to the future distributions and (3) various other factors.

The Company’s assumptions on the projected future distributions from the unconsolidated entities are dependent on market conditions. Specifically, distributions are dependent on cash to be generated from the sale of inventory by the unconsolidated entities. Such inventory is also reviewed for potential impairment by the unconsolidated entities. The unconsolidated entities generally use a discount rate of approximately 20% in their reviews for impairment, subject to the perceived risks associated with the community’s cash flow streams relative to its inventory. If a valuation adjustment is recorded by an unconsolidated entity related to its assets, the Company’s proportionate share is reflected in the Company’s homebuilding equity in earnings (loss) from unconsolidated entities with a corresponding decrease to its investment in unconsolidated entities. In certain instances, the Company may be required to record additional losses relating to its investment in unconsolidated entities, if the Company’s investment in the unconsolidated entity, or a portion thereof, is deemed to be other than temporarily impaired. These losses are included in Lennar Homebuilding other income, net.

Additionally, the Company considers various qualitative factors to determine if a decrease in the value of the investment is other-than-temporary. These factors include age of the venture, intent and ability for the Company to recover its investment in the entity, financial condition and long-term prospects of the entity, short-term liquidity needs of the unconsolidated entity, trends in the general economic environment of the land, entitlement status of the land held by the unconsolidated entity, overall projected returns on investment, defaults under contracts with third parties (including bank debt), recoverability of the investment through future cash flows and relationships with the other partners and banks. If the Company believes that the decline in the fair value of the investment is temporary, then no impairment is recorded.

REO represents real estate that the Rialto segment has taken control or has effective control of in partial or full satisfaction of loans receivable. At the time of acquisition of a property through foreclosure of a loan, REO is recorded at fair value less estimated costs to sell if classified as held-for-sale or at fair value if classified as held-and-used, which becomes the property’s new basis. The fair values of these assets are determined in part by placing reliance on third party appraisals of the properties and/or internally prepared analyses of recent offers or prices on comparable properties in the proximate vicinity. The third party appraisals and internally developed analyses are significantly impacted by the local market economy, market supply and demand, competitive conditions and prices on comparable properties, adjusted for date of sale, location, property size, and

32

other factors. Each REO is unique and is analyzed in the context of the particular market where the property is located. In order to establish the significant assumptions for a particular REO, the Company analyzes historical trends, including trends achieved by our local homebuilding operations, if applicable, and current trends in the market and economy impacting the REO. Using available trend information, the Company then calculates its best estimate of fair value, which can include projected cash flows discounted at a rate the Company believes a market participant would determine to be commensurate with the inherent risks associated with the assets and related estimated cash flow streams. These methods use unobservable inputs to develop fair value for the Company’s REO. Due to the volume and variance of unobservable inputs, resulting from the uniqueness of each of the Company's REO, the Company does not use a standard range of unobservable inputs with respect to its evaluation of REO. However, for operating properties within REO, the Company may also use estimated cash flows multiplied by a capitalization rate to determine the fair value of the property. For the three months ended February 28, 2013, the capitalization rates used to estimate fair value ranged from 8% to 12% and varied based on the location of the asset, asset type and occupancy rates for the operating properties.

Changes in economic factors, consumer demand and market conditions, among other things, could materially impact estimates used in the third party appraisals and/or internally prepared analyses of recent offers or prices on comparable properties. Thus, estimates can differ significantly from the amounts ultimately realized by the Rialto segment from disposition of these assets. The amount by which the recorded investment in the loan is less than the REO’s fair value (net of estimated cost to sell if held-for-sale), is recorded as an unrealized gain on foreclosure in the Company’s statement of operations. The amount by which the recorded investment in the loan is greater than the REO’s fair value (net of estimated cost to sell if held-for-sale) is initially recorded as an impairment in the Company’s statement of operations.

(15) Consolidation of Variable Interest Entities

GAAP requires the consolidation of VIEs in which an enterprise has a controlling financial interest. A controlling financial interest will have both of the following characteristics: (a) the power to direct the activities of a VIE that most significantly impact the VIEs economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.

The Company’s variable interest in VIEs may be in the form of (1) equity ownership, (2) contracts to purchase assets, (3) management and development agreements between the Company and a VIE, (4) loans provided by the Company to a VIE or other partner and/or (5) guarantees provided by members to banks and other third parties. The Company examines specific criteria and uses its judgment when determining if the Company is the primary beneficiary of a VIE. Factors considered in determining whether the Company is the primary beneficiary include risk and reward sharing, experience and financial condition of other partner(s), voting rights, involvement in day-to-day capital and operating decisions, representation on a VIE’s executive committee, existence of unilateral kick-out rights or voting rights, level of economic disproportionality, if any, between the Company and the other partner(s) and contracts to purchase assets from VIEs.

Generally, all major decision making in the Company’s joint ventures is shared between all partners. In particular, business plans and budgets are generally required to be unanimously approved by all partners. Usually, management and other fees earned by the Company are nominal and believed to be at market and there is no significant economic disproportionality between the Company and other partners. Generally, the Company purchases less than a majority of the joint venture’s assets and the purchase prices under the Company’s option contracts are believed to be at market.

Generally, Lennar Homebuilding unconsolidated entities become VIEs and consolidate when the other partner(s) lack the intent and financial wherewithal to remain in the entity. As a result, the Company continues to fund operations and debt paydowns through partner loans or substituted capital contributions.

The Company evaluated the joint venture agreements of its joint ventures that were formed or that had reconsideration events during the three months ended February 28, 2013. Based on the Company's evaluation, there were no entities that consolidated during the three months ended February 28, 2013. In addition, during the three months ended February 28, 2013, there were no VIEs that were deconsolidated.

At February 28, 2013 and November 30, 2012, the Company’s recorded investments in Lennar Homebuilding unconsolidated entities were $577.3 million and $565.4 million, respectively, and the Rialto segment’s investments in unconsolidated entities as of February 28, 2013 and November 30, 2012 were $106.6 million and $108.1 million, respectively.

Consolidated VIEs

As of February 28, 2013, the carrying amounts of the VIEs’ assets and non-recourse liabilities that consolidated were $1.8 billion and $435.3 million, respectively. Those assets are owned by, and those liabilities are obligations of, the VIEs, not the Company.

33

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. In addition, 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 agreements with a VIE’s banks, which may include debt guarantees and LC agreements, 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

The Company’s recorded investment in VIEs that are unconsolidated and its estimated maximum exposure to loss were as follows:

As of February 28, 2013

(In thousands)	Investments in Unconsolidated VIEs		Lennar’s Maximum Exposure to Loss
Lennar Homebuilding (1)	$	90,300	117,204
Rialto Investments (2)	23,626		23,626
	$	113,926	140,830

As of November 30, 2012

(In thousands)	Investments in Unconsolidated VIEs		Lennar’s Maximum Exposure to Loss
Lennar Homebuilding (1)	$	85,500	109,278
Rialto Investments (2)	23,587		23,587
	$	109,087	132,865

(1) At February 28, 2013, the maximum exposure to loss of Lennar Homebuilding’s investments in unconsolidated VIEs is limited to its investment in the unconsolidated VIEs, except with regard to $15.0 million of recourse debt of one of the unconsolidated VIEs, which is included in the Company’s maximum recourse related to Lennar Homebuilding unconsolidated entities, and $11.6 million of letters of credit outstanding for certain of the unconsolidated VIEs that in the event of default under its debt agreement the letter of credit will be drawn upon. At November 30, 2012, the maximum exposure to loss of Lennar Homebuilding’s investments in unconsolidated VIEs is limited to its investment in the unconsolidated VIEs, except with regard to $18.7 million of recourse debt of one of the unconsolidated VIEs, which is included in the Company’s maximum recourse related to Lennar Homebuilding unconsolidated entities and $4.8 million of letters of credit outstanding for certain of the unconsolidated VIEs that in the event of default under its debt agreement the letter of credit will be drawn upon.

(2) At both February 28, 2013 and November 30, 2012, the maximum recourse exposure to loss of Rialto’s investment in unconsolidated VIEs was its investments in unconsolidated entities. At February 28, 2013 and November 30, 2012, investments in unconsolidated VIEs and Lennar’s maximum exposure to loss include $15.3 million and $15.0 million, respectively, related to Rialto’s 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. 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. Furthermore, the Company’s economic interest is not significantly disproportionate to the point where it would indicate that the Company has the power to direct these activities.

The Company and other partners do not generally have an obligation to make capital contributions to the VIEs, except for $15.0 million of recourse debt of one of the Lennar Homebuilding unconsolidated VIEs and $11.6 million of letters of credit outstanding for one of the Lennar Homebuilding unconsolidated VIEs that in the event of default under its debt agreement the letter of credit will be drawn upon. Except for the Lennar Homebuilding unconsolidated VIEs discussed above, the Company and the other partners did not guarantee any debt of the other unconsolidated VIEs. There are no liquidity arrangements or

34

agreements to fund capital or purchase assets that could require the Company to provide financial support to the 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.

A majority of the Company’s option contracts require a non-refundable cash deposit or irrevocable letter of credit based on a percentage of the purchase price of the land. The Company’s option contracts sometimes include price adjustment provisions, which adjust the purchase price of the land to its approximate fair value at the time of acquisition or are based on the fair value at the time of takedown.

The Company’s investments in option contracts are recorded at cost unless those investments are determined to be impaired, in which case the Company’s investments are written down to fair value. The Company reviews option contracts for indicators of impairment during each reporting period. The most significant indicator of impairment is a decline in the fair value of the optioned property such that the purchase and development of the optioned property would no longer meet the Company’s targeted return on investment with appropriate consideration given to the length of time available to exercise the option. Such declines could be caused by a variety of factors including increased competition, decreases in demand or changes in local regulations that adversely impact the cost of development. Changes in any of these factors would cause the Company to re-evaluate the likelihood of exercising its land options.

Some option contracts contain a predetermined take-down schedule for the optioned land parcels. However, in almost all instances, the Company is not required to purchase land in accordance with those take-down schedules. In substantially all instances, the Company has the right and ability to not exercise its option and forfeit its deposit without further penalty, other than termination of the option and loss of any unapplied portion of its deposit and pre-acquisition costs. Therefore, in substantially all instances, the Company does not consider the take-down price to be a firm contractual obligation.

When the Company does not intend to exercise an option, it writes off any unapplied deposit and pre-acquisition costs associated with the option contract.

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, it is required to consolidate the land under option at the purchase price of the optioned land. During the three months ended February 28, 2013, the effect of consolidation of these option contracts was a net increase of $6.4 million to consolidated inventory not owned with a corresponding increase to liabilities related to consolidated inventory not owned in the accompanying condensed consolidated balance sheet as of February 28, 2013. To reflect the purchase price of the inventory consolidated, the Company reclassified the related option deposits from land under development to consolidated inventory not owned in the accompanying condensed consolidated balance sheet as of February 28, 2013. 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 increase to consolidated inventory not owned was offset by the Company exercising its options to acquire land under certain contracts previously consolidated resulting in a net decrease in consolidated inventory not owned of $1.4 million for the three months ended February 28, 2013.

The Company’s exposure to loss related to its option contracts with third parties and unconsolidated entities consisted of its non-refundable option deposits and pre-acquisition costs totaling $134.6 million and $176.7 million, respectively, at February 28, 2013 and November 30, 2012. Additionally, the Company had posted $38.9 million and $42.5 million, respectively, of letters of credit in lieu of cash deposits under certain option contracts as of February 28, 2013 and November 30, 2012.

35

(16) New Accounting Pronouncements

In June 2011, the FASB issued ASU 2011-05, Presentation of Comprehensive Income, (“ASU 2011-05”). ASU 2011-05 requires the presentation of comprehensive income in either (1) a continuous statement of comprehensive income or (2) two separate but consecutive statements. ASU 2011-05 was effective for the Company’s quarter ended February 28, 2013. The adoption of ASU 2011-05 did not have a material effect on the Company’s condensed consolidated financial statements, but required a change in the presentation of the Company’s comprehensive income from the notes of the consolidated financial statements to the face of the condensed consolidated financial statements.

In September 2011, the FASB issued ASU 2011-08, Testing Goodwill for Impairment, (“ASU 2011-08”), which amends the guidance in ASC 350-20, Intangibles – Goodwill and Other – Goodwill. Under ASU 2011-08, entities have the option of performing a qualitative assessment before calculating the fair value of the reporting unit when testing goodwill for impairment. If the fair value of the reporting unit is determined, based on qualitative factors, to be more likely than not less than the carrying amount of the reporting unit, then entities are required to perform the two-step goodwill impairment test. ASU 2011-08 was effective for the Company’s fiscal year beginning December 1, 2012. The adoption of ASU 2011-08 did not have a material effect on the Company’s condensed consolidated financial statements.

36

(17) 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, 4.125% senior notes due 2018, 6.95% senior notes due 2018, 2.00% convertible senior notes due 2020, 2.75% convertible senior notes due 2020, 3.25% convertible senior notes due 2021 and 4.750% senior notes due 2022 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 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 February 28, 2013. The guarantees are full, unconditional and joint and several and the guarantor subsidiaries are 100% directly or indirectly owned by Lennar Corporation. 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, 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 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. Supplemental information for the subsidiaries that were guarantor subsidiaries at February 28, 2013 was as follows:

Condensed Consolidating Balance Sheet

February 28, 2013

(In thousands)	Lennar Corporation		Guarantor Subsidiaries	Non-Guarantor Subsidiaries	Eliminations		Total
ASSETS
Lennar Homebuilding:
Cash and cash equivalents, restricted cash and      receivables, net	$	934,338	222,307	22,343	—		1,178,988
Inventories	—		5,061,731	550,245	—		5,611,976
Investments in unconsolidated entities	—		532,882	44,460	—		577,342
Other assets	51,269		721,073	222,816	(21,593	)	973,565
Investments in subsidiaries	3,508,365		796,925	—	(4,305,290	)	—
Intercompany	3,236,190		—	—	(3,236,190	)	—
	7,730,162		7,334,918	839,864	(7,563,073	)	8,341,871
Rialto Investments	—		—	1,342,233	—		1,342,233
Lennar Financial Services	—		73,130	675,035	—		748,165
Total assets	$	7,730,162	7,408,048	2,857,132	(7,563,073	)	10,432,269
LIABILITIES AND EQUITY
Lennar Homebuilding:
Accounts payable and other liabilities	$	250,194	566,996	34,852	(21,593	)	830,449
Liabilities related to consolidated inventory not owned	—		266,803	—	—		266,803
Senior notes and other debts payable	3,984,087		286,081	235,494	—		4,505,662
Intercompany	—		2,751,152	485,038	(3,236,190	)	—
	4,234,281		3,871,032	755,384	(3,257,783	)	5,602,914
Rialto Investments	—		—	285,166	—		285,166
Lennar Financial Services	—		28,651	445,898	—		474,549
Total liabilities	4,234,281		3,899,683	1,486,448	(3,257,783	)	6,362,629
Stockholders’ equity	3,495,881		3,508,365	796,925	(4,305,290	)	3,495,881
Noncontrolling interests	—		—	573,759	—		573,759
Total equity	3,495,881		3,508,365	1,370,684	(4,305,290	)	4,069,640
Total liabilities and equity	$	7,730,162	7,408,048	2,857,132	(7,563,073	)	10,432,269

37

(17) Supplemental Financial Information - (Continued)

Condensed Consolidating Balance Sheet

November 30, 2012

(In thousands)	Lennar Corporation			Guarantor Subsidiaries	Non-Guarantor Subsidiaries	Eliminations		Total
ASSETS
Lennar Homebuilding:
Cash and cash equivalents, restricted cash and      receivables, net	$	962,116		226,047	20,545	—		1,208,708
Inventories	—			4,532,755	538,958	—		5,071,713
Investments in unconsolidated entities	—			521,662	43,698	—		565,360
Other assets	55,625			677,692	222,753	—		956,070
Investments in subsidiaries	3,488,054			770,119	—	(4,258,173	)	—
	4,505,795			6,728,275	825,954	(4,258,173	)	7,801,851
Rialto Investments	—			—	1,647,360	—		1,647,360
Lennar Financial Services	—			77,637	835,358	—		912,995
Total assets	$	4,505,795		6,805,912	3,308,672	(4,258,173	)	10,362,206
LIABILITIES AND EQUITY
Lennar Homebuilding:
Accounts payable and other liabilities	$	279,926		533,882	42,406	—		856,214
Liabilities related to consolidated inventory not owned	—			268,159	—	—		268,159
Senior notes and other debts payable	3,533,463			245,665	225,923	—		4,005,051
Intercompany	(2,722,358		)	2,239,096	483,262	—		—
	1,091,031			3,286,802	751,591	—		5,129,424
Rialto Investments	—			—	600,602	—		600,602
Lennar Financial Services	—			31,056	599,916	—		630,972
Total liabilities	1,091,031			3,317,858	1,952,109	—		6,360,998
Stockholders’ equity	3,414,764			3,488,054	770,119	(4,258,173	)	3,414,764
Noncontrolling interests	—			—	586,444	—		586,444
Total equity	3,414,764			3,488,054	1,356,563	(4,258,173	)	4,001,208
Total liabilities and equity	$	4,505,795		6,805,912	3,308,672	(4,258,173	)	10,362,206

38

(17) Supplemental Financial Information - (Continued)

Condensed Consolidating Statement of Operations

Three Months EndedFebruary 28, 2013

(In thousands)	Lennar Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Total
Revenues:
Lennar Homebuilding	$	—		868,444		—		—		868,444
Lennar Financial Services	—			36,076		65,010		(5,206	)	95,880
Rialto Investments	—			—		25,622		—		25,622
Total revenues	—			904,520		90,632		(5,206	)	989,946
Cost and expenses:
Lennar Homebuilding	—			776,024		3,022		(372	)	778,674
Lennar Financial Services	—			37,018		47,656		(4,896	)	79,778
Rialto Investments	—			—		31,771		—		31,771
Corporate general and administrative	30,005			—		—		1,265		31,270
Total costs and expenses	30,005			813,042		82,449		(4,003	)	921,493
Lennar Homebuilding equity in earnings (loss) from     unconsolidated entities	—			(1,490	)	623		—		(867	)
Lennar Homebuilding other income, net	228			4,256		—		(218	)	4,266
Other interest expense	(1,421		)	(26,031	)	—		1,421		(26,031	)
Rialto Investments equity in earnings from     unconsolidated entities	—			—		6,173		—		6,173
Rialto Investments other income, net	—			—		1,327		—		1,327
Earnings (loss) before income taxes	(31,198		)	68,213		16,306		—		53,321
Benefit (provision) for income taxes	7,402			2,950		(6,715	)	—		3,637
Equity in earnings from subsidiaries	81,288			10,125		—		(91,413	)	—
Net earnings (including net loss attributable to     noncontrolling interests)	57,492			81,288		9,591		(91,413	)	56,958
Less: Net loss attributable to noncontrolling interests	—			—		(534	)	—		(534	)
Net earnings attributable to Lennar	$	57,492		81,288		10,125		(91,413	)	57,492

39

(17) Supplemental Financial Information - (Continued)

Condensed Consolidating Statement of Operations

Three Months Ended February 29, 2012

(In thousands)	Lennar Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Total
Revenues:
Lennar Homebuilding	$	—		624,028		405		—		624,433
Lennar Financial Services	—			34,550		37,982		(4,317	)	68,215
Rialto Investments	—			—		32,208		—		32,208
Total revenues	—			658,578		70,595		(4,317	)	724,856
Cost and expenses:
Lennar Homebuilding	—			580,510		4,375		(140	)	584,745
Lennar Financial Services	—			34,966		28,918		(3,919	)	59,965
Rialto Investments	—			78		33,370		(78	)	33,370
Corporate general and administrative	25,499			—		—		1,343		26,842
Total costs and expenses	25,499			615,554		66,663		(2,794	)	704,922
Lennar Homebuilding equity in earnings (loss) from     unconsolidated entities	—			1,141		(58	)	—		1,083
Lennar Homebuilding other income (expense), net	(77		)	4,058		—		86		4,067
Other interest expense	(1,437		)	(24,849	)	—		1,437		(24,849	)
Rialto Investments equity in earnings from     unconsolidated entities	—			—		18,458		—		18,458
Rialto Investments other expense, net	—			—		(12,240	)	—		(12,240	)
Earnings (loss) before income taxes	(27,013		)	23,374		10,092		—		6,453
Benefit (provision) for income taxes	12,609			(6,034	)	(5,051	)	—		1,524
Equity in earnings from subsidiaries	29,372			12,032		—		(41,404	)	—
Net earnings (including net loss attributable to     noncontrolling interests)	14,968			29,372		5,041		(41,404	)	7,977
Less: Net loss attributable to noncontrolling interests	—			—		(6,991	)	—		(6,991	)
Net earnings attributable to Lennar	$	14,968		29,372		12,032		(41,404	)	14,968

40

(17) Supplemental Financial Information - (Continued)

Condensed Consolidating Statement of Cash Flows

Three Months EndedFebruary 28, 2013

(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)	$	57,492		81,288		9,591		(91,413	)	56,958
Adjustments to reconcile net earnings (including net      loss attributable to noncontrolling interests) to net      cash provided by (used in) operating activities	(30,899		)	(492,197	)	136,916		7,730		(378,450	)
Net cash provided by (used in) operating activities	26,593			(410,909	)	146,507		(83,683	)	(321,492	)
Cash flows from investing activities:
Investments in and contributions to Lennar      Homebuilding unconsolidated entities, net	—			2,940		(192	)	—		2,748
Investments in and contributions to Rialto Investments      consolidated and unconsolidated entities, net	—			—		7,680		—		7,680
Decrease in Rialto Investments defeasance cash to      retire notes payable	—			—		219,158		—		219,158
Receipts of principal payments on Rialto Investments      loans receivable	—			—		18,434		—		18,434
Proceeds from sales of Rialto Investments real      estate owned	—			—		34,451		—		34,451
Other	—			(15,924	)	(6,501	)	—		(22,425	)
Net cash provided by (used in) investing activities	—			(12,984	)	273,030		—		260,046
Cash flows from financing activities:
Net repayments under Lennar Financial Services debt	—			(20	)	(146,041	)	—		(146,061	)
Net proceeds from senior notes	445,270			—		—		—		445,270
Principal repayments on Rialto Investments      notes payable	—			—		(304,123	)	—		(304,123	)
Net borrowings (repayments) on other borrowings	—			(12,434	)	6,600		—		(5,834	)
Exercise of land option contracts from an      unconsolidated land investment venture	—			(1,270	)	—		—		(1,270	)
Net payments related to noncontrolling interests	—			—		(12,151	)	—		(12,151	)
Excess tax benefits from share-based awards	3,013			—		—		—		3,013
Common stock:
Issuances	21,668			—		—		—		21,668
Dividends	(7,693		)	—		—		—		(7,693	)
Intercompany	(523,037		)	433,966		5,388		83,683		—
Net cash provided by (used in) financing activities	(60,779		)	420,242		(450,327	)	83,683		(7,181	)
Net decrease in cash and cash equivalents	(34,186		)	(3,651	)	(30,790	)	—		(68,627	)
Cash and cash equivalents at beginning of period	953,478			192,373		164,892		—		1,310,743
Cash and cash equivalents at end of period	$	919,292		188,722		134,102		—		1,242,116

41

(17) Supplemental Financial Information - (Continued)

Condensed Consolidating Statement of Cash Flows

Three Months EndedFebruary 29, 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)	$	14,968		29,372		5,041		(41,404	)	7,977
Adjustments to reconcile net earnings (including net      loss attributable to noncontrolling interests) to      net cash provided by (used in) operating activities	(46,874		)	(229,062	)	94,111		41,404		(140,421	)
Net cash provided by (used in) operating activities	(31,906		)	(199,690	)	99,152		—		(132,444	)
Cash flows from investing activities:
Investments in and contributions to Lennar      Homebuilding unconsolidated entities, net	—			(16,465	)	(448	)	—		(16,913	)
Investments in and contributions to Rialto Investments      consolidated and unconsolidated entities, net	—			—		(7,213	)	—		(7,213	)
Decrease in Rialto Investments defeasance cash to      retire notes payable	—			—		108,163		—		108,163
Receipts of principal payments on Rialto Investments      loans receivable	—			—		33,549		—		33,549
Proceeds from sales of Rialto Investments real       estate owned	—			—		37,868		—		37,868
Other	—			5,147		(3,895	)	—		1,252
Net cash provided by (used) in investing activities	—			(11,318	)	168,024		—		156,706
Cash flows from financing activities:
Net repayments under Lennar Financial Services debt	—			(55	)	(150,629	)	—		(150,684	)
Net proceeds from convertible senior notes	48,965			—		—		—		48,965
Principal repayments on Rialto Investments notes payable	—			—		(170,026	)	—		(170,026	)
Net borrowings (repayments) on other borrowings	—			12,296		(4,473	)	—		7,823
Exercise of land option contracts from an      unconsolidated land investment venture	—			(4,628	)	—		—		(4,628	)
Net receipts related to noncontrolling interests	—			—		391		—		391
Common stock:
Issuances	10,761			—		—		—		10,761
Dividends	(7,562		)	—		—		—		(7,562	)
Intercompany	(212,652		)	165,478		47,174		—		—
Net cash provided by (used in) financing activities	(160,488		)	173,091		(277,563	)	—		(264,960	)
Net decrease in cash and cash equivalents	(192,394		)	(37,917	)	(10,387	)	—		(240,698	)
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	$	671,843		134,101		116,962		—		922,906

42

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and accompanying notes included under Item 1 of this Report and our audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for our fiscal year ended November 30, 2012.

Some of the statements in this Management’s Discussion and Analysis of Financial Condition and Results of Operations, and elsewhere in this Quarterly Report on Form 10-Q, are “forward-looking statements,” as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include statements regarding our business, financial condition, results of operations, cash flows, strategies and prospects. You can identify forward-looking statements by the fact that these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties. Many factors could cause our actual activities or results to differ materially from the activities and results anticipated in forward-looking statements. These factors include those described under the caption “Risk Factors” included in Item 1A of our Annual Report on Form 10-K for our fiscal year ended November 30, 2012. We do not undertake any obligation to update forward-looking statements, except as required by Federal securities laws.

Outlook

During the first quarter of 2013, we continued to see improvement in the marketplace. Current market conditions are being driven by strong demand resulting from low interest rates and attractive home prices, which have led to very affordable monthly payments, compared to rising rental rates. Overall, we are experiencing more traffic in our communities, and have improved our sales pace while increasing prices in many of our communities during the first quarter of 2013. Our new orders and backlog increased 34% and 82%, respectively, from the prior year.

In fiscal 2013, our principal focus in our homebuilding operations will continue to be on improving our operating margin on the homes we sell by increasing sales prices and reducing sales incentives, to offset increasing labor and material costs, as well as taking advantage of the steps we have taken over the past several years to reduce costs and right-size our overhead structure. In addition, we continue to invest in carefully underwritten strategic land acquisitions in well-positioned markets that we expect to continue to support our homebuilding operations going forward and help us increase operating leverage as deliveries increase. Our Financial Services segment benefited during the first quarter of 2013 from an increase in refinancing transactions and our growing homebuilding operations resulting in a strong quarter with operating earnings of $16.1 million compared to $8.3 million prior year. Although we expect a less robust refinancing market in the remainder of 2013, our Financial Services segment should continue to be a strong profit generator in 2013. We believe that 2013 will be a transitional year for our Rialto Investments segment as the PPIP fund was successfully completed at the end of fiscal 2012 and the first closing of our second fund was completed in December of 2012 and it will be ramping up throughout 2013.

As we enter fiscal 2013, we believe that all the segments of our company are well positioned. Our company's main driver of earnings will continue to be our homebuilding operations, but we are also focused on multiple platforms including Rialto, Mutlifamily, Financial Services and FivePoint, which manages several of our strategic long-term joint ventures, in order to create additional shareholder value. We are on track to achieve another year of substantial profitability in 2013 as the housing market recovery continues and we continue to benefit from our strategic land acquisitions and new community openings.

43

(1) Results of Operations

Overview

We historically have experienced, and expect to continue to experience, variability in quarterly results. Our results of operations for the three months ended February 28, 2013 are not necessarily indicative of the results to be expected for the full year. Gross margin percentages tend to increase as the year progresses since there are a lower number of deliveries and more community start-ups in the first two quarters of our fiscal year.

Our net earnings attributable to Lennar were $57.5 million, or $0.30 per basic share and $0.26 per diluted share, in the first quarter of 2013, which included a net benefit for income taxes of $3.6 million. The benefit for income taxes included a reversal of our deferred tax asset valuation allowance of $25.1 million, partially offset by a tax provision of $21.5 million primarily related to first quarter 2013 pre-tax earnings. This compared to net earnings attributable to Lennar of $15.0 million, or $0.08 per basic and diluted share, in the first quarter of 2012. During the three months ended February 28, 2013, there was an increase in our homebuilding operating earnings primarily due to an increase in the number of home deliveries and in the average sales price of homes delivered in our homebuilding operations, partially offset by an increase in materials and labor costs. We believe it is likely that our price increases will continue to out pace cost increases. In addition, there was an increase in the operating earnings of our Lennar Financial Services segment primarily due to increased volume and margins as a result of an increase in refinance transactions and homebuilding deliveries. These increases in operating earnings were partially offset by a decrease in the operating earnings of our Rialto segment primarily due to a decrease in equity in earnings of its unconsolidated entities as a result of the PPIP fund being liquidated at the end of 2012 and no contributions from the second fund which is just starting to ramp up operations.

Financial information relating to our operations was as follows:

	Three Months Ended
	February 28,			February 29,
(In thousands)	2013			2012
Lennar Homebuilding revenues:
Sales of homes	$	855,081		610,700
Sales of land	13,363			13,733
Total Lennar Homebuilding revenues	868,444			624,433
Lennar Homebuilding costs and expenses:
Costs of homes sold	666,084			482,822
Cost of land sold	10,348			10,836
Selling, general and administrative	102,242			91,087
Total Lennar Homebuilding costs and expenses	778,674			584,745
Lennar Homebuilding operating margins	89,770			39,688
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities	(867		)	1,083
Lennar Homebuilding other income, net	4,266			4,067
Other interest expense	(26,031		)	(24,849	)
Lennar Homebuilding operating earnings	$	67,138		19,989
Lennar Financial Services revenues	$	95,880		68,215
Lennar Financial Services costs and expenses	79,778			59,965
Lennar Financial Services operating earnings	$	16,102		8,250
Rialto Investments revenues	$	25,622		32,208
Rialto Investments costs and expenses	31,771			33,370
Rialto Investments equity in earnings from unconsolidated entities	6,173			18,458
Rialto Investments other income (expense), net	1,327			(12,240	)
Rialto Investments operating earnings	$	1,351		5,056
Total operating earnings	$	84,591		33,295
Corporate general administrative expenses	(31,270		)	(26,842	)
Earnings before income taxes	$	53,321		6,453

44

Three Months Ended February 28, 2013 versus Three Months Ended February 29, 2012

Revenues from home sales increased 40% in the first quarter of 2013 to $855.1 million from $610.7 million in 2012. Revenues were higher primarily due to a 28% increase in the number of home deliveries, excluding unconsolidated entities, and a 9% increase in the average sales price of homes delivered. New home deliveries, excluding unconsolidated entities, increased to 3,174 homes in the first quarter of 2013 from 2,472 homes in the first quarter of 2012. There was an increase in home deliveries in all our Homebuilding segments and Homebuilding Other. The average sales price of homes delivered increased to $269,000 in the first quarter of 2013 from $246,000 in the same period last year, driven primarily by an increase in the average sales price of home deliveries in all of our homebuilding segments, except our Homebuilding West segment and Homebuilding Other, primarily due to increase in pricing in many of our markets as the market recovery continues. The average sales price of home deliveries decreased in our Homebuilding West segment primarily due to a shift in product mix in California due to the timing of deliveries from active communities with a lower average sales price. In Homebuilding Other the average sales price decreased primarily due to new home deliveries from our new operations in Washington and Oregon which have a lower average sales price than the other states in Homebuilding Other. Sales incentives offered to homebuyers were $23,300 per home delivered in the first quarter of 2013, or 8.0% as a percentage of home sales revenue, compared to $34,200 per home delivered in the same period last year, or 12.2% as a percentage of home sales revenue, and $25,800 per home delivered in the fourth quarter of 2012, or 9.0% as a percentage of home sales revenue.

Gross margins on home sales were $189.0 million, or 22.1%, in the first quarter of 2013, compared to $127.9 million, or 20.9%, in the first quarter of 2012. Gross margin percentage on home sales improved compared to last year, primarily due to a greater percentage of deliveries from our new higher margin communities (communities where land was acquired subsequent to November 30, 2008), which made up 57% of our deliveries, a decrease in sales incentives offered to homebuyers as a percentage of revenue from home sales, an increase in the average sales price of homes delivered and lower valuation adjustments, partially offset by an increase in materials and labor costs. Gross profits on land sales totaled $3.0 million in the first quarter of 2013, compared to $2.9 million in the first quarter of 2012.

Selling, general and administrative expenses were $102.2 million in the first quarter of 2013, compared to $91.1 million in the first quarter of 2012. As a percentage of revenues from home sales, selling, general and administrative expenses improved to 12.0% in the first quarter of 2013, from 14.9% in the first quarter of 2012, due to improved operating leverage as a result of increased absorption per community.

Lennar Homebuilding equity in earnings (loss) from unconsolidated entities was ($0.9) million in the first quarter of 2013, related to our share of operating losses of Lennar Homebuilding unconsolidated entities, compared to Lennar Homebuilding equity in earnings (loss) of $1.1 million in the first quarter of 2012.

Lennar Homebuilding other income, net, totaled $4.3 million in the first quarter of 2013, compared to $4.1 million in the first quarter of 2012.

Lennar Homebuilding interest expense was $46.3 million in the first quarter of 2013 ($19.4 million was included in cost of homes sold, $0.8 million in cost of land sold and $26.0 million in other interest expense), compared to $41.3 million in the first quarter of 2012 ($16.1 million was included in cost of homes sold, $0.4 million in cost of land sold and $24.8 million in other interest expense). Interest expense increased due to an increase in our outstanding debt and an increase in deliveries, partially offset by a lower weighted average interest rate compared to the same period last year.

Operating earnings for the Lennar Financial Services segment were $16.1 million in the first quarter of 2013, compared to $8.3 million in the first quarter of 2012. The increase in profitability was primarily due to increased volume and margins in the segment's mortgage operations as a result of an increase in refinance transactions and homebuilding deliveries.

In the first quarter of 2013, operating earnings for the Rialto Investments segment were $1.7 million (which included $1.4 million operating earnings and an add back of $0.3 million of net loss attributable to noncontrolling interests), compared to operating earnings of $9.4 million (which included $5.1 million of operating earnings and an add back $4.3 million of net loss attributable to noncontrolling interests) in the same period last year. In the first quarter of 2013, revenues in this segment were $25.6 million, which consisted primarily of accretable interest income associated with the segment’s portfolio of real estate loans and fees for managing and servicing assets, compared to revenues of $32.2 million in the same period last year. Revenues decreased primarily due to lower interest income as a result of a decrease in the portfolio of loans, reflecting Rialto Investments segment's shift in focus to managing assets for funds it creates rather than acquiring assets. Expenses in this segment were $31.8 million, in the first quarter of 2013, which consisted primarily of costs related to its portfolio operations, loan impairments of $7.1 million primarily associated with the segment's FDIC loan portfolio (before noncontrolling interests) and other general and administrative expenses, compared to expenses of $33.4 million, which consisted primarily of costs related to its portfolio operations, due diligence expenses related to both completed and abandoned transactions, and other general and administrative expenses in the same period last year.

45

The segment also had equity in earnings from unconsolidated entities of $6.2 million in the first quarter of 2013, which included $6.4 million of equity in earnings related to our share of earnings from the Rialto Real Estate Fund (the “Fund I”). This compared to equity in earnings from unconsolidated entities of $18.5 million in the first quarter of 2012, which included $8.4 million of net gains primarily related to unrealized gains for our share of the mark-to-market adjustments of the investment portfolio underlying the AllianceBernstein L.P. ("AB") fund formed under the Federal government's Public-Private Investment Program ("PPIP") that was liquidated at the end of 2012, $2.6 million of interest income earned by the AB PPIP fund and $7.6 million of equity in earnings related to our share of Fund I.

In the first quarter of 2013, Rialto Investments other income (expense), net, was $1.3 million, which consisted primarily of rental income and gains realized on the sale of real estate owned ("REO"), partially offset by expenses related to owning and maintaining REO. In the first quarter of 2012, Rialto Investments other income (expense), net, was ($12.2) million, which consisted primarily of expenses related to owning and maintaining real estate owned, partially offset by rental income and gains from acquisition of REO through foreclosure.

Corporate general and administrative expenses were $31.3 million, or 3.2% as a percentage of total revenues, in the first quarter of 2013, compared to $26.8 million, or 3.7% as a percentage of total revenues, in the first quarter of 2012. The increase in corporate general and administrative expenses was primarily due to an increase in personnel related expenses as a result of variable compensation expense.

Net loss attributable to noncontrolling interests were ($0.5) million and ($7.0) million, respectively, in the first quarter of 2013 and 2012, primarily attributable to noncontrolling interests related to our homebuilding and Rialto Investments segments. Net loss attributable to noncontrolling interests of our Rialto Investments segment was primarily related to the FDIC’s interest in the portfolio of real estate loans that we acquired in partnership with the FDIC.

A reduction of the carrying amounts of deferred tax assets by a valuation allowance is required if, based on available evidence, it is more likely than not that such assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed quarterly based on the more-likely-than-not realization threshold criterion. In the assessment of the need for a valuation allowance, appropriate consideration is given to all positive and negative evidence related to the realization of the deferred tax assets. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carryforward periods, our experience with loss carryforwards not expiring unused and tax planning alternatives.

During the first quarter of 2013, we concluded that it was more likely than not that a portion of our state net operating loss ("NOL") carryforwards related to which a valuation allowance had been established would be utilized. This conclusion was based on additional positive evidence including actual and forecasted profitability. Accordingly, during the first quarter of 2013, we reversed $25.1 million of the valuation allowance against the state NOL carryforwards. This reversal was partially offset by a tax provision of $21.5 million primarily related to first quarter 2013 pre-tax earnings. Therefore, we had a $3.6 million net benefit for income taxes for the first quarter of 2013. During the first quarter of 2012, we recorded a tax benefit of $1.5 million, primarily related to a refund claim for certain losses carried back to a prior year. Based on an analysis utilizing objectively verifiable evidence, it was not more likely than not that certain state NOL carryforwards would be utilized due to an inability to carry back these losses in most states and short carryforward periods that exist in certain states. As a result, as of February 28, 2013, we had a valuation allowance of $63.7 million against our deferred tax assets, primarily related to state NOL carryforwards. In future periods, some or all of the remaining allowance could be reversed if sufficient additional positive evidence is present indicating that it is more likely than not that a portion or all of our remaining deferred tax assets will be realized. Our overall effective income tax rates were (6.75%) and (11.33%), respectively, for the three months ended February 28, 2013 and February 29, 2012. The negative effective tax rates were primarily related to the reversal of our valuation allowance in the three months ended February 28, 2013 and a refund claim for certain losses carried back to a prior year in the three months ended February 29, 2012.

46

Homebuilding Segments

We have grouped our homebuilding activities into five reportable segments, which we refer to as Homebuilding East, Homebuilding Central, Homebuilding West, Homebuilding Southeast Florida and Homebuilding Houston, based primarily upon similar economic characteristics, geography and product type. Information about homebuilding activities in states that do not have economic characteristics that are similar to those in other states in the same geographic area is grouped under “Homebuilding Other,” which is not a reportable segment. References in this Management’s Discussion and Analysis of Financial Condition and Results of Operations to homebuilding segments are to those reportable segments.

At February 28, 2013, our reportable homebuilding segments and Homebuilding Other consisted of homebuilding divisions located in:

East: Florida⁽¹⁾, Georgia, Maryland, New Jersey, North Carolina, South Carolina and Virginia

Central: Arizona, Colorado and Texas⁽²⁾ 

West: California and Nevada

Southeast Florida: Southeast Florida

Houston: Houston, Texas

Other: Illinois, Minnesota, Oregon and Washington

(1) Florida in the East reportable segment excludes Southeast Florida, which is its own reportable segment.

(2) Texas in the Central reportable segment excludes Houston, Texas, which is its own reportable segment.

The following tables set forth selected financial and operational information related to our homebuilding operations for the periods indicated:

Selected Financial and Operational Data

	Three Months Ended
	February 28,		February 29,
(In thousands)	2013		2012
East:
Sales of homes	$	286,854	236,264
Sales of land	2,038		8,569
Total East	288,892		244,833
Central:
Sales of homes	147,958		84,927
Sales of land	1,074		786
Total Central	149,032		85,713
West:
Sales of homes	173,585		122,850
Sales of land	490		235
Total West	174,075		123,085
Southeast Florida:
Sales of homes	71,851		49,789
Total Southeast Florida	71,851		49,789
Houston:
Sales of homes	98,995		80,768
Sales of land	9,523		4,066
Total Houston	108,518		84,834
Other:
Sales of homes	75,838		36,102
Sales of land	238		77
Total Other	76,076		36,179
Total homebuilding revenues	$	868,444	624,433

47

	Three Months Ended
	February 28,			February 29,
(In thousands)	2013			2012
Operating earnings (loss):
East:
Sales of homes	$	30,785		17,627
Sales of land	351			1,800
Equity in earnings from unconsolidated entities	83			31
Other income (expense), net	(1,251		)	1,431
Other interest expense	(7,093		)	(6,942	)
Total East	22,875			13,947
Central:
Sales of homes	17,487			4,039
Sales of land	161			92
Equity in loss from unconsolidated entities	(2		)	(36	)
Other income (expense), net	(330		)	709
Other interest expense	(3,359		)	(3,740	)
Total Central	13,957			1,064
West:
Sales of homes	13,806			(2,227	)
Sales of land	(42		)	(73	)
Equity in earnings (loss) from unconsolidated entities	(263		)	1,340
Other income, net	8,057			1,823
Other interest expense	(8,955		)	(8,436	)
Total West	12,603			(7,573	)
Southeast Florida:
Sales of homes	10,577			8,580
Equity in loss from unconsolidated entities	(230		)	(245	)
Other income, net	1,405			444
Other interest expense	(2,344		)	(2,145	)
Total Southeast Florida	9,408			6,634
Houston:
Sales of homes	8,151			4,686
Sales of land	2,494			1,057
Equity in loss from unconsolidated entities	(4		)	(7	)
Other income (expense), net	113			(50	)
Other interest expense	(1,248		)	(1,170	)
Total Houston	9,506			4,516
Other:
Sales of homes	5,949			4,086
Sales of land	51			21
Equity in loss from unconsolidated entities	(451		)	—
Other expense, net	(3,728		)	(290	)
Other interest expense	(3,032		)	(2,416	)
Total Other	(1,211		)	1,401
Total homebuilding operating earnings	$	67,138		19,989

48

Summary of Homebuilding Data

Deliveries:

	Three Months Ended
	Homes		Dollar Value (In thousands)			Average Sales Price
	February 28, 2013	February 29, 2012	February 28, 2013		February 29, 2012	February 28, 2013		February 29, 2012
East	1,140	1,062	$	288,205	237,021	$	253,000	223,000
Central	575	387	147,957		84,927	257,000		219,000
West	599	394	180,749		126,015	302,000		320,000
Southeast Florida	265	187	71,851		49,788	271,000		266,000
Houston	383	352	98,995		80,768	258,000		229,000
Other	224	100	75,837		36,103	339,000		361,000
Total	3,186	2,482	$	863,594	614,622	$	271,000	248,000

Of the total homes delivered listed above, 12 homes with a dollar value of $8.5 million and an average sales price of $709,000 represent home deliveries from unconsolidated entities for the three months ended February 28, 2013, compared to 10 deliveries with a dollar value of $3.9 million and an average sales price of $392,000 for the three months ended February 29, 2012.

Sales Incentives (1):

	Three Months Ended
	Sales Incentives (In thousands)			Average Sales Incentives Per Home Delivered			Sales Incentives as a % of Revenue
	February 28, 2013		February 29, 2012	February 28, 2013		February 29, 2012	February 28, 2013		February 29, 2012
East	$	32,902	36,077	$	28,900	34,100	10.3	%	13.3	%
Central	10,010		12,991	17,400		33,600	6.3	%	13.2	%
West	6,253		11,985	10,600		31,000	3.5	%	8.9	%
Southeast Florida	7,997		6,820	30,200		36,500	10.0	%	12.1	%
Houston	13,017		12,608	34,000		35,800	11.6	%	13.5	%
Other	3,844		3,973	17,200		39,700	4.8	%	9.9	%
Total	$	74,023	84,454	$	23,300	34,200	8.0	%	12.2	%

(1) Sales incentives relate to home deliveries during the period, excluding deliveries by unconsolidated entities.

New Orders (2):

	Three Months Ended
	Homes		Dollar Value (In thousands)			Average Sales Price
	February 28, 2013	February 29, 2012	February 28, 2013		February 29, 2012	February 28, 2013		February 29, 2012
East	1,552	1,246	$	412,769	292,490	$	266,000	235,000
Central	655	481	175,092		104,051	267,000		216,000
West	578	515	190,097		157,598	329,000		306,000
Southeast Florida	501	225	150,673		62,462	301,000		278,000
Houston	517	424	137,846		97,947	267,000		231,000
Other	252	131	91,104		48,786	362,000		372,000
Total	4,055	3,022	$	1,157,581	763,334	$	285,000	253,000

(2) New orders represent the number of new sales contracts executed with homebuyers, net of cancellations, during the three months ended February 28, 2013 and February 29, 2012.

Of the total new orders listed above, 13 homes with a dollar value of $8.6 million and an average sales price of $661,000 represent new orders from unconsolidated entities for the three months ended February 28, 2013, compared to 23 new orders with a dollar value of $8.9 million and an average sales price of $387,000 for the three months ended February 29, 2012.

49

Backlog:

	Homes		Dollar Value (In thousands)			Average Sales Price
	February 28, 2013	February 29, 2012	February 28, 2013		February 29, 2012	February 28, 2013		February 29, 2012
East	1,788	1,132	$	494,760	278,092	$	277,000	246,000
Central	733	403	195,762		84,245	267,000		209,000
West	687	419	212,545		129,173	309,000		308,000
Southeast Florida	705	204	220,098		64,920	312,000		318,000
Houston	650	427	174,370		96,948	268,000		227,000
Other	359	126	158,845		58,007	442,000		460,000
Total	4,922	2,711	$	1,456,380	711,385	$	296,000	262,000

Of the total homes in backlog listed above, 6 homes with a backlog dollar value of $3.6 million and an average sales price of $601,000 represent the backlog from unconsolidated entities at February 28, 2013, compared with backlog from unconsolidated entities of 15 homes with a backlog dollar value of $6.0 million and an average sales price of $399,000 at February 29, 2012.

Backlog represents the number of homes under sales contracts. Homes are sold using sales contracts, which are generally accompanied by sales deposits. In some instances, purchasers are permitted to cancel sales if they fail to qualify for financing or under certain other circumstances. The cancellation rates for the three months ended February 28, 2013 was within a range that is consistent with our historical cancellation rates. We experienced cancellation rates in our homebuilding segments and Homebuilding Other as follows:

	Three Months Ended
	February 28, 2013		February 29, 2012
East	14	%	18	%
Central	18	%	19	%
West	16	%	15	%
Southeast Florida	11	%	14	%
Houston	18	%	22	%
Other	12	%	7	%
Total	15	%	18	%

Active Communities:

	February 28, 2013	February 29, 2012
East	190	153
Central	72	70
West	62	68
Southeast Florida	27	29
Houston	79	74
Other	54	32
Total	484	426

Of the total active communities listed above, 2 communities represent active communities being developed by unconsolidated entities during the periods ended February 28, 2013 and February 29, 2012.

50

Deliveries from New Higher Margin Communities (3):

	Homes		Dollar Value (In thousands)			Average Sales Price
	February 28, 2013	February 29, 2012	February 28, 2013		February 29, 2012	February 28, 2013		February 29, 2012
East	765	528	$	190,948	111,496	$	250,000	211,000
Central	238	144	59,344		32,807	249,000		228,000
West	371	214	101,432		67,939	273,000		317,000
Southeast Florida	177	128	52,609		37,527	297,000		293,000
Houston	92	58	26,014		11,905	283,000		205,000
Other	174	36	58,611		16,957	337,000		471,000
Total	1,817	1,108	$	488,958	278,631	$	269,000	251,000

(3) Deliveries from new higher margin communities represent deliveries from communities where land was acquired subsequent to November 30, 2008, and is a subset of the deliveries included in the deliveries table.

Three Months Ended February 28, 2013 versus Three Months Ended February 29, 2012

Homebuilding East: Homebuilding revenues increased for the three months ended February 28, 2013, compared to the three months ended February 29, 2012, primarily due to an increase in the number of home deliveries and average sales price of homes delivered in all of the states in the segment, except Maryland and Virginia, in which deliveries and average sales price decreased for the three months ended February 28, 2013, compared to the same period last year. The increase in the number of deliveries was primarily driven by an increase in demand as evidenced by higher traffic volume in some of our communities, compared to the same period last year, resulting in an increase in our home sales per community. The increase in the average sales price of homes delivered was primarily because we have been able to increase the sales price of homes delivered and/or reduce sales incentives in certain of our communities as the market recovers in certain areas. The decrease in deliveries in Maryland and Virginia is due to the timing of opening and closing of communities. The average sales price decrease in Maryland and Virginia was primarily related to product mix as the prior year results included a community with a high average sales price that did not have deliveries in the first quarter of 2013. Gross margins on home sales were $67.6 million, or 23.6%, for the three months ended February 28, 2013, compared to gross margins on home sales of $50.8 million, or 21.5%, for the three months ended February 29, 2012. Gross margin percentage on homes increased compared to last year primarily due to a greater percentage of deliveries from our new higher margin communities, a decrease in sales incentives offered to homebuyers as a percentage of revenues from home sales (10.3% in 2013, compared to 13.3% in 2012) and lower valuation adjustments, partially offset by a 12% increase in direct construction and land costs per home due to increases in material and labor costs.

Homebuilding Central: Homebuilding revenues increased for the three months ended February 28, 2013 compared to the three months ended February 29, 2012, primarily due to an increase in the number of home deliveries in all of the states in the segment and an increase in the average sales price of homes delivered in all states in the segment. The increase in the number of deliveries was primarily driven by an increase in demand as evidenced by higher traffic volume in some of our communities, compared to the same period last year, resulting in an increase in our home sales per community. The increase in the average sales price of homes delivered was primarily because we have been able to increase the sales price of homes delivered and/or reduce sales incentives in certain of our communities as the market recovers in certain areas. Gross margins on home sales were $29.5 million, or 19.9%, for the three months ended February 28, 2013, compared to gross margins on home sales of $15.0 million, or 17.7%, for the three months ended February 29, 2012. Gross margin percentage on homes sales improved compared to last year primarily due to a greater percentage of deliveries from our new higher margin communities, a decrease in sales incentives offered to homebuyers as a percentage of revenues from home sales (6.3% in 2013, compared to 13.2% in 2012) and lower valuation adjustments, partially offset by a 12% increase in direct construction and land costs per home due to increases in material and labor costs.

Homebuilding West: Homebuilding revenues increased for the three months ended February 28, 2013, compared to the three months ended February 29, 2012, primarily due to an increase in the number of home deliveries in all of the states in the segment, partially offset by a 6% decrease in the average sales price in California. The increase in the number of deliveries was primarily driven by an increase in demand as evidenced by higher traffic volume in some of our communities, compared to the same period last year, resulting in an increase in our home sales per community. The decrease in the average sales price of homes delivered in California, was primarily related to a change in product mix due to the timing of deliveries from active communities with a lower average sales price, which also resulted in lower direct construction and land costs per home. Gross margins on home sales were $37.6 million, or 21.6%, for the three months ended February 28, 2013, compared to gross margins on home sales of $23.0 million, or 18.7%, for the three months ended February 29, 2012. Gross margin percentage on homes

51

sales increased compared to last year primarily due to a greater percentage of deliveries from our new higher margin communities, a decrease in sales incentives offered to homebuyers as a percentage of revenues from home sales (3.5% in 2013, compared to 8.9% in 2012) and lower valuation adjustments, partially offset by the decrease in average sales price per home delivered.

Homebuilding Southeast Florida: Homebuilding revenues increased for the three months ended February 28, 2013, compared to the three months ended February 29, 2012, primarily due to an increase in the number of home deliveries in this segment driven by an increase in demand as evidenced by higher traffic volume in some of our communities, compared to the same period last year, resulting in an increase in our home sales per community. Gross margins on home sales were $18.4 million, or 25.6%, for the three months ended February 28, 2013, compared to gross margins on home sales of $14.3 million, or 28.8%, for the three months ended February 29, 2012. Gross margin percentage on homes sales decreased compared to last year primarily due to higher valuation adjustments and a 18% increase in direct construction costs per home due to increases in material and labor costs, partially offset by a 17% decrease in land costs per home due to the mix of home deliveries and a decrease in sales incentives offered to homebuyers as a percentage of revenues from home sales (10.0% in 2013, compared to 12.1% in 2012).

Homebuilding Houston: Homebuilding revenues increased for the three months ended February 28, 2013, compared to the three months ended February 29, 2012, primarily due to an increase in the number of home deliveries and an increase in the average sales price of homes delivered in this segment. The increase in the number of home deliveries was primarily driven by an increase in demand, compared to the same period last year, resulting in an increase in our home sales per community. The increase in the average sales price of homes delivered was primarily because we have been able to increase the sales price of homes delivered and/or reduce sales incentives in certain of our communities as the market recovers in certain areas. Gross margins on home sales were $20.7 million, or 20.9%, for the three months ended February 28, 2013, compared to gross margins on home sales of $15.2 million, or 18.8%, for the three months ended February 29, 2012. Gross margin percentage on homes sales increased compared to last year primarily due to a greater percentage of deliveries from our new higher margin communities, a decrease in sales incentives offered to homebuyers as a percentage of revenues from home sales (11.6% in 2013, compared to 13.5% in 2012), partially offset by a 9% increase in direct construction and land costs per home due to increases in material and labor costs.

Homebuilding Other: Homebuilding revenues increased for the three months ended February 28, 2013, compared to the three months ended February 29, 2012, primarily due to an increase in the number of home deliveries in all of the states of Homebuilding Other except for New York and Illinois, which are states with only a few active communities. The increase in homebuilding revenues was partially offset by a decrease in the average sales price of homes delivered. The increase in deliveries was primarily driven by an increase in demand, compared to the same period last year, resulting in an increase in our home sales per community and increased deliveries in Oregon and Washington, which are new operations. The average sales price decreased primarily due to new home deliveries from our new operations in Washington and Oregon which have a lower average sales price than the other states in Homebuilding Other, which also resulted in lower direct construction and land costs per home. Gross margins on home sales were $15.2 million, or 20.0%, for the three months ended February 28, 2013, compared to gross margins on home sales of $9.6 million, or 26.5%, for the three months ended February 29, 2012. Gross margin percentage on homes sales decreased primarily due to lower gross margins in Minnesota as a result of non-recurring benefits recorded during the three months ended February 29, 2012 related to changes in cost-to-complete estimates for certain communities in their close-out phase, as well as lower gross margins from the new operations in Washington due to start up costs. This decrease was offset by a decrease in sales incentives offered to homebuyers as a percentage of revenues from home sales (4.8% in 2013, compared to 9.9% in 2012) and lower valuation adjustments.

At February 28, 2013 and February 29, 2012, we owned 112,068 homesites and 100,465 homesites, respectively, and had access to an additional 22,542 homesites and 16,621 homesites, respectively, through either option contracts with third parties or agreements with unconsolidated entities in which we have investments. At November 30, 2012, we owned 107,138 homesites and had access to an additional 21,346 homesites through either option contracts with third parties or agreements with unconsolidated entities in which we have investments. At February 28, 2013, 3.7% of the homesites we owned were subject to home purchase contracts. At February 28, 2013 and February 29, 2012, our backlog of sales contracts was 4,922 homes ($1,456.4 million) and 2,711 homes ($711.4 million), respectively. The increase in backlog was primarily attributable to an increase in new orders in the three months ended February 28, 2013, compared to the three months ended February 29, 2012.

52

Lennar Financial Services Segment

Our Lennar Financial Services reportable segment provides mortgage financing, title insurance and closing services for both buyers of our homes and others. Substantially all of the loans the Lennar 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, we retain potential liability for possible claims by purchasers that we breached certain limited industry-standard representations and warranties in the loan sale agreements. The following table sets forth selected financial and operation information related to our Lennar Financial Services segment:

	Three Months Ended
	February 28,			February 29,
(Dollars in thousands)	2013			2012
Revenues	$	95,880		68,215
Costs and expenses	79,778			59,965
Operating earnings	$	16,102		8,250
Dollar value of mortgages originated	$	1,188,000		743,000
Number of mortgages originated	5,100			3,500
Mortgage capture rate of Lennar homebuyers	79		%	78	%
Number of title and closing service transactions	25,500			22,600
Number of title policies issued	41,200			27,300

Rialto Investments Segment

Our Rialto reportable segment focuses on real estate investments and asset management. Rialto utilizes its vertically-integrated investment and operating platform to underwrite, diligence, acquire, manage, workout and add value to diverse portfolios of real estate loans, properties and securities, as well as providing strategic real estate capital. Rialto's primary focus is to manage third party capital and funds or entities it manages have invested in, and primarily on their behalf. Rialto has commenced the workout and/or oversight of billions of dollars of real estate assets across the United States, including commercial and residential real estate loans and properties, as well as mortgage backed securities with the objective of generating superior, risk-adjusted returns. To date, many of the investment and management opportunities have arisen from the dislocation in the United States real estate markets and the restructuring and recapitalization of those markets.

Rialto is the sponsor of and an investor in private equity vehicles that invest in and manage real estate related assets. This has included Fund I in which investors have committed and contributed a total of $700 million of equity (including $75 million by us). In addition, in December 2012, Rialto Real Estate Fund II, LP (“Fund II”) had its first closing of investor commitments of $260 million (including $100 million by us). Rialto also earns fees for its role as a manager of these vehicles and for providing asset management and other services to those vehicles and other third parties. The following table presents the results of operations of our Rialto segment for the periods indicated:

	Three Months Ended
	February 28,		February 29,
(In thousands)	2013		2012
Revenues	$	25,622	32,208
Costs and expenses	31,771		33,370
Rialto Investments equity in earnings from unconsolidated entities	6,173		18,458
Rialto Investments other income (expense), net	1,327		(12,240	)
Operating earnings (1)	$	1,351	5,056

(1) Operating earnings for the three months ended February 28, 2013 and February 29, 2012 include net loss attributable to noncontrolling interests of ($0.3) million and ($4.3) million, respectively.

53

The following is a detail of Rialto Investments other income (expense), net for the periods indicated:

	Three Months Ended
	February 28,			February 29,
(In thousands)	2013			2012
Realized gains on REO sales, net	$	8,671		42
Unrealized gains on transfer of loans receivable to REO, net	670			1,952
REO expenses	(12,556		)	(18,074	)
Rental income	4,542			3,840
Rialto Investments other income (expense), net	$	1,327		(12,240	)

Distressed Asset Portfolios

In February 2010, the Rialto segment acquired indirectly 40% managing member equity interests in two limited liability companies (“LLCs”), in partnership with the FDIC. The LLCs hold performing and non-performing loans formerly owned by 22 failed financial institutions and when the Rialto segment acquired its interests in the LLCs, the two portfolios consisted of approximately 5,500 distressed residential and commercial real estate loans. The FDIC retained 60% equity interests in the LLCs and provided $626.9 million of financing with 0% interest, which is non-recourse to us and the LLCs. As of February 28, 2013, and November 30, 2012, the notes payable balance was $167.2 million and $470.0 million, respectively; however, as of February 28, 2013 and November 30, 2012, $4.7 million and $223.8 million, respectively, of cash collections on loans in excess of expenses had been deposited in a defeasance account, established for the repayment of the notes payable, under the agreement with the FDIC. The funds in the defeasance account will be used to retire the notes payable upon their maturity. During the three months ended February 28, 2013, the LLCs retired $302.8 million principal amount of the notes payable under the agreement with the FDIC through the defeasance account. In February 2013, the Rialto segment and the FDIC entered into a forbearance agreement whereby the FDIC temporarily waived its right to reissue a new purchase money note for the remaining $11.2 million balance of the portion of the notes payable that was due on February 25, 2013 until July 25, 2013. This forbearance does not meet the definition of an extension in the financing agreement and thus, no triggering event is deemed to have occurred. We agreed to disburse all available funds in the defeasance account on a monthly basis to the FDIC until the remaining $11.2 million balance of the portion of the notes payable that was due on February 25, 2013 was paid in full, but no later than July 25, 2013. In March 2013, we paid the remaining balance of the notes payable that was due on February 25, 2013 with cash disbursed from the defeasance account.

The LLCs met the accounting definition of variable interest entities (“VIEs”) and since we were determined to be the primary beneficiary, we consolidated the LLCs. At February 28, 2013, these consolidated LLCs had total combined assets and liabilities of $930.7 million and $188.2 million, respectively. At November 30, 2012, these consolidated LLCs had total combined assets and liabilities of $1,236.4 million and $493.4 million, respectively.

In September 2010, the Rialto segment acquired approximately 400 distressed residential and commercial real estate loans and over 300 REO properties from three financial institutions. We paid $310 million for the distressed real estate and real estate related assets of which, $124 million was financed through a 5-year senior unsecured note provided by one of the selling institutions. As of February 28, 2013, there was $90.9 million outstanding.

Investments

In 2010, 2011 and 2012, the Rialto segment obtained investors in Fund I who made equity commitments of $700 million (including $75 million committed by us). All capital commitments have been called and funded, and Fund I is closed to additional commitments. During the three months ended February 28, 2013, we received distributions of $7.7 million as a return of capital. During the three months ended February 29, 2012, we contributed $7.3 million to Fund I. As of February 28, 2013 and November 30, 2012, the carrying value of our investment in Fund I was $97.6 million and $98.9 million, respectively. For the three months ended February 28, 2013, and February 29, 2012, our share of earnings from Fund I was $6.4 million and $7.6 million, respectively.

In addition, in 2010, the Rialto segment also invested in approximately $43 million of non-investment grade CMBS for $19.4 million, representing a 55% discount to par value. As of February 28, 2013 and November 30, 2012, the carrying value of the investment securities was $15.3 million and $15.0 million, respectively.

In December 2012, our Rialto segment completed the first closing of its second real estate investment fund ("Fund II") with initial equity commitments of approximately $260 million, including $100 million committed by us. Among other things, Fund II's documents prohibit us, including our Rialto segment, from acquiring real estate assets that might be suitable for Fund

54

II, before Fund II is fully invested or committed, other than residential properties we acquire in connection with our homebuilding activities. In March 2013, $75 million of the $260 million in equity commitments was called, of which, we contributed our portion of approximately $29 million.

Additionally, another subsidiary in the Rialto segment has approximately a 5% investment in a service and infrastructure provider to the residential home loan market (the “Servicer Provider”), which provides services to the consolidated LLCs, among others. As of both February 28, 2013 and November 30, 2012, the carrying value of our investment in the Servicer Provider was $8.4 million.

2) Financial Condition and Capital Resources

At February 28, 2013, we had cash and cash equivalents related to our homebuilding, financial services and Rialto operations of $1.2 billion, compared to $1.3 billion at November 30, 2012 and $0.9 billion at February 29, 2012.

We finance our land acquisition and development activities, construction activities, financial services activities, Rialto activities and general operating needs primarily with cash generated from our operations, debt issuances and equity offerings, as well as cash borrowed under our warehouse lines of credit and our credit facility.

Operating Cash Flow Activities

During the three months ended February 28, 2013 and February 29, 2012, cash used in operating activities totaled $321.5 million and $132.4 million, respectively. During the three months ended February 28, 2013, cash used in operating activities were impacted by an increase in inventories due to strategic land purchases and a decrease in accounts payable and other liabilities, partially offset by our net earnings (net of our deferred income tax benefit) and a decrease in Lennar Financial Services loans held-for-sale.

During the three months ended February 29, 2012, cash used in operating activities were impacted bya decrease in accounts payable and other liabilities, an increase in inventories due to strategic land purchases, partially offset by a decrease in receivables and a decrease in Lennar Financial Services loans held-for-sale.

Investing Cash Flow Activities

During the three months ended February 28, 2013 and February 29, 2012, cash provided by investing activities totaled $260.0 million and $156.7 million, respectively. During the three months ended February 28, 2013, we received $18.4 million of principal payments on Rialto Investments loans receivable and $34.5 million of proceeds from the sales of REO. In addition, cash increased due to a $219.2 million decrease in Rialto Investments defeasance cash, $17.5 million of distributions of capital from Lennar Homebuilding unconsolidated entities and $7.7 million of distributions of capital from the Rialto Investments' unconsolidated entities, primarily related to Fund I. This was partially offset by $14.7 million of cash contributions to Lennar Homebuilding unconsolidated entities primarily for working capital.

During the three months ended February 29, 2012, we received $33.5 million of principal payments on Rialto Investments loans receivable and $37.9 million of proceeds from the sale of REO. In addition, cash increased due to a $108.2 million decrease in Rialto Investments defeasance cash and $9.9 million of distributions of capital from Lennar Homebuilding unconsolidated entities. This was offset by $26.8 million of cash contributions to Lennar Homebuilding unconsolidated entities primarily for working capital and debt reduction and $7.3 million of cash contributions to the Fund I, a Rialto Investments' unconsolidated entity.

We are always evaluating the possibility of acquiring homebuilders and other companies. However, at February 28, 2013, we had no agreements or understandings regarding any significant transactions.

Financing Cash Flow Activities

During the three months ended February 28, 2013, our cash used in financing activities of $7.2 million was primarily attributed to principal payments on Rialto Investments notes payable, net repayments under our Lennar Financial Services’ 364-day warehouse repurchase facilities and principal payments on other borrowings, offset by the receipt of proceeds related to the sale of $275 million principal amount of our 4.125% senior notes due 2018 (the "4.125% Senior Notes") and the sale of an additional $175 million aggregate principal amount of our 4.750% senior notes due 2022 (the "4.750% Senior Notes"). During the three months ended February 29, 2012, our cash used in financing activities of $265.0 million was primarily attributed to principal payments on Rialto Investments notes payable, net repayments under our Lennar Financial Services’ 364-day warehouse repurchase facilities and principal payments on other borrowings, partially offset by the receipt of proceeds of the sale of an additional $50 million aggregate principal amount of our 3.25% convertible senior notes due 2021 that the initial purchasers acquired to cover over-allotments.

55

Debt to total capital ratios are financial measures commonly used in the homebuilding industry and are presented to assist in understanding the leverage of our Lennar Homebuilding operations. Management believes providing this measure of leverage of our Lennar Homebuilding operations enables management and readers of our financial statements to better understand our financial position and performance. Lennar Homebuilding debt to total capital and net Lennar Homebuilding debt to total capital are calculated as follows:

(Dollars in thousands)	February 28, 2013			November 30, 2012		February 29, 2012
Lennar Homebuilding debt	$	4,505,662		4,005,051		3,472,937
Stockholders’ equity	3,495,881			3,414,764		2,722,796
Total capital	$	8,001,543		7,419,815		6,195,733
Lennar Homebuilding debt to total capital	56.3		%	54.0	%	56.1	%
Lennar Homebuilding debt	$	4,505,662		4,005,051		3,472,937
Less: Lennar Homebuilding cash and cash equivalents	1,112,728			1,146,867		792,165
Net Lennar Homebuilding debt	$	3,392,934		2,858,184		2,680,772
Net Lennar Homebuilding debt to total capital (1)	49.3		%	45.6	%	49.6	%

(1) Net Lennar Homebuilding debt to total capital consists of net Lennar Homebuilding debt (Lennar Homebuilding debt less Lennar Homebuilding cash and cash equivalents) divided by total capital (net Lennar Homebuilding debt plus stockholders’ equity).

At February 28, 2013, Lennar Homebuilding debt to total capital was higher compared to February 29, 2012, due to an increase in Lennar Homebuilding debt primarily as a result of an increase in our senior notes, partially offset by an increase in stockholder’s equity primarily related to our net earnings, which included the partial reversal of our deferred tax asset valuation allowance of $491.5 million during 2012.

In addition to the use of capital in our homebuilding, financial services and Rialto operations, we actively evaluate various other uses of capital, which fit into our homebuilding, financial services and Rialto strategies and appear to meet our profitability and return on capital goals. This may include acquisitions of, or investments in, other entities, the payment of dividends or repurchases of our outstanding common stock or debt. These activities may be funded through any combination of our warehouse lines of credit, cash generated from operations, sales of assets or the issuance into capital markets of debt, common stock or preferred stock.

Our Lennar Homebuilding average debt outstanding was $4.2 billion with an average rate for interest incurred of 5.1% for the three months ended February 28, 2013, compared to $3.4 billion with an average rate for interest incurred of 5.5% for the three months ended February 29, 2012. Interest incurred related to homebuilding debt for the three months ended February 28, 2013 was $61.4 million, compared to $53.3 million in the same period last year.

At February 28, 2013, we had a $150 million Letter of Credit and Reimbursement Agreement with certain financial institutions, which may be increased to $200 million, but for which there are currently no commitments for the additional $50 million. At February 28, 2013, we also had a $50 million Letter of Credit and Reimbursement Agreement with certain financial institutions that had a $50 million accordion feature for which there are currently no commitments, and a $200 million Letter of Credit Facility with a financial institution. Additionally, in May 2012, we entered into a 3-year unsecured revolving credit facility (the "Credit Facility") with certain financial institutions that expires in May 2015. As of February 28, 2013, the maximum aggregate commitment under the Credit Facility was $525 million, of which $500 million was committed and $25 million was available through an accordion feature, subject to additional commitments. As of February 28, 2013, we had no outstanding borrowings under the Credit Facility. We believe we were in compliance with our debt covenants at February 28, 2013.

Our performance letters of credit outstanding were $115.8 million and $107.5 million, respectively, at February 28, 2013 and November 30, 2012. Our financial letters of credit outstanding were $209.0 million and $204.7 million, respectively, at February 28, 2013 and November 30, 2012. Performance letters of credit are generally posted with regulatory bodies to guarantee our performance of certain development and construction activities, and financial letters of credit are generally posted in lieu of cash deposits on option contracts, for insurance risks, credit enhancements and as other collateral.

During the three months ended February 28, 2013, we issued $275 million aggregate principal amount of our 4.125% senior notes due 2018 at a price of 99.998% in a private placement and an additional $175 million aggregate principal amount of our 4.750% senior notes due 2022 at a price of 98.073% in a private placement. Proceeds from the offerings, after payment of expenses, were $272.0 million and $172.2 million, respectively. We will use the net proceeds of the sale of the 4.125% Senior Notes and the 4.750% Senior Notes for working capital and general corporate purposes, which may include repayment

56

or repurchase of our other outstanding senior notes. Interest on the 4.125% Senior Notes is due semi-annually beginning September 15, 2013. Our 4.125% Senior Notes are unsecured and unsubordinated, but are guaranteed by substantially all of our 100% owned homebuilding subsidiaries. Interest on our 4.750% Senior Notes is due semi-annually beginning May 15, 2013. Our 4.750% Senior Notes are unsecured and unsubordinated, but are guaranteed by substantially all of our 100% owned homebuilding subsidiaries. At February 28, 2013, the carrying amount of our 4.125% Senior Notes was $275.0 million. At February 28, 2013 and November 30, 2012, the carrying amount of our 4.750% Senior Notes was $521.6 million and $350.0 million, respectively.

Currently, substantially all of our 100% owned homebuilding subsidiaries are guaranteeing all our Senior Notes (the “Guaranteed Notes”). The guarantees are full and unconditional. The principal reason our 100% owned homebuilding subsidiaries guaranteed the Guaranteed Notes is so holders of the Guaranteed Notes will have rights at least as great with regard to our subsidiaries as any other holders of a material amount of our unsecured debt. Therefore, the guarantees of the Guaranteed Notes will remain in effect only while the guarantor subsidiaries guarantee a material amount of the debt of Lennar Corporation, as a separate entity, to others. At any time when a guarantor subsidiary is no longer guaranteeing at least $75 million of Lennar Corporation’s debt other than the Guaranteed Notes, either directly or by guaranteeing other subsidiaries’ obligations as guarantors of Lennar Corporation’s debt, the guarantor subsidiaries’ guarantee of the Guaranteed Notes will be suspended. Therefore, if the guarantor subsidiaries cease guaranteeing Lennar Corporation’s obligations under our Credit Facility and our letter of credit facilities and are not guarantors of any new debt, the guarantor subsidiaries’ guarantees of the Guaranteed Notes will be suspended until such time, if any, as they again are guaranteeing at least $75 million of Lennar Corporation’s debt other than the Guaranteed Notes.

If our guarantor subsidiaries are guaranteeing revolving credit lines totaling at least $75 million, we will treat the guarantees of the Guaranteed Notes as remaining in effect even during periods when Lennar Corporation’s borrowings under the revolving credit lines are less than $75 million.

In addition, 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.

Under the Credit Facility agreement (the "Agreement"), as of the end of each fiscal quarter, we are required to maintain minimum consolidated tangible net worth of approximately $1.5 billion plus the sum of 50% of the cumulative consolidated net income from February 29, 2012, if positive, and 50% of the net cash proceeds from any equity offerings from and after February 29, 2012. We are required to maintain a leverage ratio of 67% or less at the end of each fiscal quarter during our 2012 fiscal year, starting with our second fiscal quarter of 2012, and through the first two fiscal quarters of our 2013 fiscal year; a leverage ratio of 65% or less at the end of the last two fiscal quarters of our 2013 fiscal year and through the first two fiscal quarters of our 2014 fiscal year; and a leverage ratio of 60% or less at the end of the last two fiscal quarters of our 2014 fiscal year through the maturity of the Agreement in May 2015. As of the end of each fiscal quarter, we are also required to maintain either (1) liquidity in an amount equal to or greater than 1.00x consolidated interest incurred for the last twelve months then ended or (2) an interest coverage ratio of equal to or greater than 1.50:1.00 for the last twelve months then ended.

57

The following are computations of the minimum net worth test, maximum leverage ratio, and liquidity test, as calculated per the Agreement as of February 28, 2013:

(Dollars in thousands)	Covenant Level			Level Achieved as of February 28, 2013
Minimum net worth test (1)	$	1,789,673		2,598,445
Maximum leverage ratio (2)	67.0		%	48.2	%
Liquidity test (3)	1.00			5.00

The terms minimum net worth test, maximum leverage ratio and liquidity test used in the Agreement are specifically calculated per the Agreement and differ in specified ways from comparable GAAP or common usage terms. Our minimum net worth test, maximum leverage ratio and liquidity test were calculated for purposes of the Agreement as of February 28, 2013 as follows:

(1) The minimum consolidated tangible net worth and the consolidated tangible net worth as calculated per the Agreement are as follows:

Minimum consolidated tangible net worth
(Dollars in thousands)	As of February 28, 2013
Stated minimum consolidated tangible net worth per the Agreement	$	1,459,657
Plus: 50% of cumulative consolidated net income as calculated per the Agreement, if positive	330,016
Required minimum consolidated tangible net worth per the Agreement	$	1,789,673

Consolidated tangible net worth
(Dollars in thousands)	As of February 28, 2013
Total equity	$	4,069,640
Less: Intangible assets (a)	(51,972		)
Tangible net worth as calculated per the Agreement	4,017,668
Less: Consolidated equity of mortgage banking, Rialto and other designated subsidiaries (b)	(1,295,422		)
Less: Lennar Homebuilding noncontrolling interests	(123,801		)
Consolidated tangible net worth as calculated per the Agreement	$	2,598,445

(a) Intangible assets represent the Financial Services' title operations goodwill and title plant assets.

(b) Consolidated equity of mortgage banking subsidiaries represents the equity of the Lennar Financial Services segment's mortgage banking operations. Consolidated equity of other designated subsidiaries represents the equity of certain subsidiaries included within the Lennar Financial Services segment's title operations that are prohibited from being guarantors under this Agreement. The consolidated equity of Rialto, as calculated per the Agreement, represents Rialto total assets minus Rialto total liabilities as disclosed in Note 8 of the notes to our condensed consolidated financial statements as of February 28, 2013. The consolidated equity of mortgage banking subsidiaries, Rialto and other designated subsidiaries are included in equity in our condensed consolidated balance sheet as of February 28, 2013.

58

(2) The leverage ratio as calculated per the Agreement is as follows:

Leverage ratio:
(Dollars in thousands)	As of February 28, 2013
Lennar Homebuilding senior notes and other debts payable	$	4,505,662
Less: Debt of Lennar Homebuilding consolidated entities (a)	(235,494		)
Funded debt as calculated per the Agreement	4,270,168
Plus: Financial letters of credit (b)	209,593
Plus: Lennar's recourse exposure related to Lennar Homebuilding unconsolidated/consolidated entities, net (c)	91,047
Consolidated indebtedness as calculated per the Agreement	4,570,808
Less: Unrestricted cash and cash equivalents in excess of required liquidity per the Agreement (d)	(1,118,337		)
Numerator as calculated per the Agreement	$	3,452,471
Denominator as calculated per the Agreement	$	7,169,253
Leverage ratio (e)	48.2		%

(a) Debt of our Lennar Homebuilding consolidated entities is included in Lennar Homebuilding senior notes and other debts payable in our condensed consolidated balance sheet as of February 28, 2013.

(b) Our financial letters of credit outstanding include $209.0 million disclosed in Note 11 of the notes to our condensed consolidated financial statements as of February 28, 2013 and $0.6 million of financial letters of credit related to the Financial Services segment's title operations.

(c) Lennar's recourse exposure related to the Lennar Homebuilding unconsolidated and consolidated entities, net includes $42.3 million of net recourse exposure related to Lennar Homebuilding unconsolidated entities and $48.8 million of recourse exposure related to Lennar Homebuilding consolidated entities, which is included in Lennar Homebuilding senior notes and other debts payable in our condensed consolidated balance sheet as of February 28, 2013.

(d) Unrestricted cash and cash equivalents include $1,112.7 million of Lennar Homebuilding cash and cash equivalents and $15.6 million of Lennar Financial Services cash and cash equivalents, excluding cash and cash equivalents from mortgage banking subsidiaries and other designated subsidiaries within the Lennar Financial Services segment.

(e) Leverage ratio consists of the numerator as calculated per the Agreement divided by the denominator as calculated per the Agreement (consolidated indebtedness as calculated per the Agreement, plus consolidated tangible net worth as calculated per the Agreement).

(3) Liquidity as calculated per the Agreement is as follows:

Liquidity test
(Dollars in thousands)	As of February 28, 2013
Unrestricted cash and cash equivalents as calculated per the Agreement (a)	$	1,112,401
Consolidated interest incurred as calculated per the Agreement (b)	$	222,535
Liquidity (c)	5.00

(a) Unrestricted cash and cash and cash equivalents at February 28, 2013 for the liquidity test calculation includes $1,112.7 million of Lennar Homebuilding cash and cash equivalents plus $15.6 million of Lennar Financial Services cash and cash equivalents, excluding cash and cash equivalents from mortgage banking subsidiaries and other designated subsidiaries within the Lennar Financial Services segment, minus $15.9 million of cash and cash equivalents of Lennar Homebuilding consolidated joint ventures.

(b) Consolidated interest incurred as calculated per the Agreement for the last twelve months ended February 28, 2013 includes Lennar Homebuilding interest incurred of $230.1 million, minus (1) interest incurred related to our partner's share of Lennar Homebuilding consolidated joint ventures included within Lennar Homebuilding interest incurred, (2) Lennar Homebuilding interest income included within Lennar Homebuilding other income, net, and (3) Lennar Financial Services interest income, excluding interest income from mortgage banking subsidiaries and other designated subsidiaries within the Lennar Financial Services operations.

(c) We are only required to maintain either (1) liquidity in an amount equal to or greater than 1.00x consolidated interest incurred for the last twelve months then ended or (2) an interest coverage ratio of equal to or greater

59

than 1.50:1.00 for the last twelve months then ended. Since we passed the liquidity test, we were not required to disclose the interest coverage ratio test, which we also passed.

At February 28, 2013, our Lennar Financial Services segment had a 364-day warehouse repurchase facility with a maximum aggregate commitment of $100 million and an additional uncommitted amount of $100 million that matures in February 2014, a 364-day warehouse repurchase facility with a maximum aggregate commitment of $200 million that matures in July 2013, and a 364-day warehouse repurchase facility with a maximum aggregate commitment of $150 million that matures February 2014 (plus a $100 million accordion feature that is usable from 10 days prior to quarter-end through 20 days after the quarter-end) and a 364-day warehouse facility with a maximum aggregate commitment of $60 million that matures November 2013. As of February 28, 2013, the maximum aggregate commitment and uncommitted amount under these facilities totaled $610 million and $100 million, respectively.

Our Lennar Financial Services segment uses these facilities to finance its lending activities until the mortgage loans are sold to investors and expects the facilities to be renewed or replaced with other facilities when they mature. Borrowings under the facilities were $311.9 million and $458.0 million at February 28, 2013 and November 30, 2012, respectively, and were collateralized by mortgage loans and receivables on loans sold to investors but not yet paid for with outstanding principal balances of $405.7 million and $509.1 million, at February 28, 2013 and November 30, 2012, respectively.

Since our Lennar Financial Services segment’s borrowings under the warehouse repurchase facilities are generally repaid with the proceeds from the sale of mortgage loans and receivables on loans that secure those borrowings, the facilities are not likely to be a call on our current cash or future cash resources. If the facilities are not renewed, the borrowings under the lines of credit will be paid off by selling mortgage loans held-for-sale and by collecting on receivables on loans sold to investors but not yet paid. Without the facilities, our Lennar Financial Services segment would have to use cash from operations and other funding sources to finance its lending activities.

Changes in Capital Structure

We have a stock repurchase program which permits the purchase of up to 20 million shares of our outstanding common stock. During both the three months ended February 28, 2013 and February 29, 2012, there were no repurchases of common stock under the stock repurchase program. As of February 28, 2013, 6.2 million shares of common stock can be repurchased in the future under the program.

During the three months ended February 28, 2013 and February 29, 2012 treasury stock decreased by 0.5 million and 0.3 million, respectively, in Class A common shares due to activity related to our equity compensation plan.

On February 15, 2013, we paid cash dividends of $0.04 per share for both our Class A and Class B common stock to holders of record at the close of business on February 1, 2013, as declared by our Board of Directors on January 17, 2013.

Based on our current financial condition and credit relationships, we believe that our operations and borrowing resources will provide for our current and long-term capital requirements at our anticipated levels of activity.

Off-Balance Sheet Arrangements

Lennar Homebuilding: Investments in Unconsolidated Entities

At February 28, 2013, we had equity investments in 38 homebuilding and land unconsolidated entities (of which 7 had recourse debt, 4 non-recourse debt and 27 had no debt), compared to 36 homebuilding and land unconsolidated entities at November 30, 2012. In addition, we had 4 multifamily unconsolidated entities as of February 28, 2013, compared to 2 multifamily unconsolidated entities as November 30, 2012, as we continued to grow our multifamily business during the first quarter. Historically, we invested in unconsolidated entities that acquired and developed land (1) for our homebuilding operations or for sale to third parties or (2) for the construction of homes for sale to third-party homebuyers. Through these entities, we primarily sought to reduce and share our risk by limiting the amount of our capital invested in land, while obtaining access to potential future homesites and allowing us to participate in strategic ventures. The use of these entities also, in some instances, enabled us to acquire land to which we could not otherwise obtain access, or could not obtain access on as favorable terms, without the participation of a strategic partner. Participants in these joint ventures have been land owners/developers, other homebuilders and financial or strategic partners. Joint ventures with land owners/developers have given us access to homesites owned or controlled by our partners. Joint ventures with other homebuilders have provided us with the ability to bid jointly with our partners for large land parcels. Joint ventures with financial partners have allowed us to combine our homebuilding expertise with access to our partners’ capital. Joint ventures with strategic partners have allowed us to combine our homebuilding expertise with the specific expertise (e.g. commercial or infill experience) of our partner. Each joint venture is governed by an executive committee consisting of members from the partners.

60

Summarized condensed financial information on a combined 100% basis related to Lennar Homebuilding’s unconsolidated entities that are accounted for by the equity method was as follows:

Statements of Operations and Selected Information

	Three Months Ended
	February 28,			February 29,
(Dollars in thousands)	2013			2012
Revenues	$	81,224		82,644
Costs and expenses	81,637			83,422
Other income	13,361			—
Net earnings (loss) of unconsolidated entities	$	12,948		(778	)
Our share of net earnings	$	1,385		607
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities	$	(867	)	1,083
Our cumulative share of net earnings - deferred at February 28, 2013 and February 29, 2012, respectively	$	1,482		4,321
Our investments in unconsolidated entities	$	577,342		563,364
Equity of the unconsolidated entities	$	2,179,129		2,089,703
Our investment % in the unconsolidated entities	26		%	27	%

Balance Sheets

(In thousands)	February 28, 2013		November 30, 2012
Assets:
Cash and cash equivalents	$	167,418	157,340
Inventories	2,802,210		2,792,064
Other assets	183,024		250,940
	$	3,152,652	3,200,344
Liabilities and equity:
Accounts payable and other liabilities	$	255,369	310,496
Debt	718,154		759,803
Equity	2,179,129		2,130,045
	$	3,152,652	3,200,344

As of February 28, 2013 and November 30, 2012, our recorded investments in Lennar Homebuilding unconsolidated entities were $577.3 million and $565.4 million, respectively, while the underlying equity in Lennar Homebuilding unconsolidated entities partners’ net assets as of February 28, 2013 and November 30, 2012 was $690.6 million and $681.6 million, respectively, primarily as a result of us buying an interest in a partner's equity in a Lennar Homebuilding unconsolidated entity at a discount to book value.

In fiscal 2007, we sold a portfolio of land to a strategic land investment venture with Morgan Stanley Real Estate Fund II, L.P., an affiliate of Morgan Stanley & Co., Inc., in which we have approximately a 20% ownership interest and 50% voting rights. Due to the nature of our continuing involvement, the transaction did not qualify as a sale by us under GAAP; thus, the inventory has remained on our condensed consolidated balance sheets in consolidated inventory not owned. As of February 28, 2013 and November 30, 2012, the portfolio of land (including land development costs) of $255.8 million and $264.9 million, respectively, is also reflected as inventory in the summarized condensed financial information related to Lennar Homebuilding’s unconsolidated entities.

61

Debt to total capital of the Lennar Homebuilding unconsolidated entities in which we have investments was calculated as follows:

(Dollars in thousands)	February 28, 2013			November 30, 2012
Debt	$	718,154		759,803
Equity	2,179,129			2,130,045
Total capital	$	2,897,283		2,889,848
Debt to total capital of our unconsolidated entities	24.8		%	26.3	%

Our investments in Lennar Homebuilding unconsolidated entities by type of venture were as follows:

(In thousands)	February 28, 2013		November 30, 2012
Land development	$	508,235	493,917
Homebuilding	69,107		71,443
Total investments	$	577,342	565,360

The summary of our net recourse exposure related to the Lennar Homebuilding unconsolidated entities in which we have investments was as follows:

(In thousands)	February 28, 2013			November 30, 2012
Several recourse debt - repayment	$	40,773		48,020
Joint and several recourse debt - repayment	15,000			18,695
Lennar’s maximum recourse exposure	55,773			66,715
Less: joint and several reimbursement agreements with our partners	(13,500		)	(16,826	)
Lennar’s net recourse exposure	$	42,273		49,889

During the three months ended February 28, 2013, our maximum recourse exposure related to indebtedness of Lennar Homebuilding unconsolidated entities decreased by $10.9 million primarily related to the joint ventures selling assets and other transactions.

Indebtedness of an unconsolidated entity is secured by its own assets. Some unconsolidated entities own multiple properties and other assets. There is no cross collateralization of debt to different unconsolidated entities. We also do not use our investment in one unconsolidated entity as collateral for the debt in another unconsolidated entity or commingle funds among Lennar Homebuilding unconsolidated entities.

In connection with a loan to a Lennar Homebuilding unconsolidated entity, we and our partners often guarantee to a lender either jointly and severally or on a several basis, any or all of the following: (i) the completion of the development, in whole or in part, (ii) indemnification of the lender from environmental issues, (iii) indemnification of the lender from “bad boy acts” of the unconsolidated entity (or full recourse liability in the event of unauthorized transfer or bankruptcy) and (iv) that the loan to value and/or loan to cost will not exceed a certain percentage (maintenance or remargining guarantee) or that a percentage of the outstanding loan will be repaid (repayment guarantee).

In connection with loans to an unconsolidated entity where there is a joint and several guarantee, we generally have a reimbursement agreement with our partner. The reimbursement agreement provides that neither party is responsible for more than its proportionate share of the guarantee. However, if our joint venture partner does not have adequate financial resources to meet its obligations under the reimbursement agreement, we may be liable for more than our proportionate share, up to our maximum exposure, which is the full amount covered by the joint and several guarantee.

62

The recourse debt exposure in the previous table represents our maximum exposure to loss from guarantees and does not take into account the underlying value of the collateral or the other assets of the borrowers that are available to repay debt or to reimburse us for any payments on our guarantees. The Lennar Homebuilding unconsolidated entities that have recourse debt have a significant amount of assets and equity. The summarized balance sheets of the Lennar Homebuilding unconsolidated entities with recourse debt were as follows.

(In thousands)	February 28, 2013		November 30, 2012
Assets	$	1,811,292	1,843,163
Liabilities	$	732,346	765,295
Equity	$	1,078,946	1,077,868

In addition, in most instances in which we have guaranteed debt of a Lennar Homebuilding unconsolidated entity, our partners have also guaranteed that debt and are required to contribute their share of the guarantee payment. Historically, we have had repayment guarantees and maintenance guarantees. In a repayment guarantee, we and our venture partners guarantee repayment of a portion or all of the debt in the event of a default before the lender would have to exercise its rights against the collateral. In the event of default, if our venture partner does not have adequate financial resources to meet its obligation under our reimbursement agreement, we may be liable for more than our proportionate share, up to our maximum recourse exposure, which is the full amount covered by the joint and several guarantee. The maintenance guarantees only apply if the value of the collateral (generally land and improvements) is less than a specified percentage of the loan balance. If we are required to make a payment under a maintenance guarantee to bring the value of the collateral above the specified percentage of the loan balance, the payment would generally constitute a capital contribution or loan to the Lennar Homebuilding unconsolidated entity and increase our share of any funds the unconsolidated entity distributes. As of both February 28, 2013 and November 30, 2012, we do not have any maintenance guarantees related to our Lennar Homebuilding unconsolidated entities.

In connection with many of the loans to Lennar Homebuilding unconsolidated entities, we and our 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.

During the three months ended February 28, 2013, there were no loan paydowns by Lennar relating to recourse debt. During the three months ended February 29, 2012, there were other loan paydowns of $3.4 million. During both the three months ended February 28, 2013 and February 29, 2012, there were no payments under completion guarantees.

As of February 28, 2013, the fair values of the repayment guarantees and completion guarantees were not material. We believe that as of February 28, 2013, in the event we become legally obligated to perform under a guarantee of the obligation of a Lennar Homebuilding unconsolidated entity due to a triggering event under a guarantee, most of the time the collateral should be sufficient to repay at least a significant portion of the obligation or we and our partners would contribute additional capital into the venture. In certain instances, we have placed performance letters of credit and surety bonds with municipalities for our joint ventures.

The total debt of Lennar Homebuilding unconsolidated entities in which we have investments was as follows:

(In thousands)	February 28, 2013			November 30, 2012
Lennar’s net recourse exposure	$	42,273		49,889
Reimbursement agreements from partners	13,500			16,826
Lennar’s maximum recourse exposure	$	55,773		66,715
Non-recourse bank debt and other debt (partner’s share of several recourse)	$	93,066		114,900
Non-recourse land seller debt or other debt	18,488			26,340
Non-recourse debt with completion guarantees	464,044			458,418
Non-recourse debt without completion guarantees	86,783			93,430
Non-recourse debt to Lennar	662,381			693,088
Total debt	$	718,154		759,803
Lennar’s maximum recourse exposure as a % of total JV debt	8		%	9	%

In view of recent credit market conditions, it is not uncommon for lenders to real estate developers, including joint ventures in which we have interests, to assert non-monetary defaults (such as failure to meet construction completion deadlines

63

or declines in the market value of collateral below required amounts) or technical monetary defaults against the real estate developers. In most instances, those asserted defaults are resolved by modifications of the loan terms, additional equity investments or other concessions by the borrowers. In addition, in some instances, real estate developers, including joint ventures in which we have interests, are forced to request temporary waivers of covenants in loan documents or modifications of loan terms, which are often, but not always obtained. However, in some instances developers, including joint ventures in which we have interests, are not able to meet their monetary obligations to lenders, and are thus declared in default. Because we sometimes guarantee all or portions of the obligations to lenders of joint ventures in which we have interests, when these joint ventures default on their obligations, lenders may or may not have claims against us. Normally, we do not make payments with regard to guarantees of joint venture obligations while the joint ventures are contesting assertions regarding sums due to their lenders. When it is determined that a joint venture is obligated to make a payment that we have guaranteed and the joint venture will not be able to make that payment, we accrue the amounts probable to be paid by us as a liability. Although we generally fulfill our guarantee obligations within a reasonable time after we determine that we are obligated with regard to them, at any point in time it is likely that we will have some balance of unpaid guarantee liability. At both February 28, 2013 and November 30, 2012, we had no liabilities accrued for unpaid guarantees of joint venture indebtedness on our condensed consolidated balance sheets.

The following table summarizes the principal maturities of our Lennar Homebuilding unconsolidated entities (“JVs”) debt as per current debt arrangements as of February 28, 2013 and does not represent estimates of future cash payments that will be made to reduce debt balances. Many JV loans have extension options in the loan agreements that would allow the loans to be extended into future years.

			Principal Maturities of Unconsolidated JVs by Period
(In thousands)	Total JV Assets (1)		Total JV Debt	2013	2014	2015	Thereafter	Other Debt (2)
Net recourse debt to Lennar	$		42,273	16,298	4,412	1,500	20,063	—
Reimbursement agreements			13,500	—	—	13,500	—	—
Maximum recourse debt exposure to     Lennar	1,811,292		55,773	16,298	4,412	15,000	20,063	—
Debt without recourse to Lennar	253,879		662,381	92,275	26,895	34,953	486,255	22,003
Total	$	2,065,171	718,154	108,573	31,307	49,953	506,318	22,003

(1) Excludes unconsolidated joint venture assets where the joint venture has no debt.

(2) Represents land seller debt and other debt.

The following table is a breakdown of the assets, debt and equity of the Lennar Homebuilding unconsolidated joint ventures by partner type as of February 28, 2013:

(Dollars in thousands)	Total JV Assets		Maximum Recourse Debt Exposure to Lennar		Reimbursement Agreements	Net Recourse Debt to Lennar	Total Debt Without Recourse to Lennar	Total JV Debt	Total JV Equity	JV Debt to Total Capital Ratio		Remaining Homes/ Homesites in JV
Partner Type:
Financial	$	2,322,780	33,434		13,500	19,934	510,448	543,882	1,543,995	26	%	38,921
Land Owners/Developers	401,931		17,928		—	17,928	82,729	100,657	287,267	26	%	14,432
Strategic	145,360		1,911		—	1,911	17,912	19,823	118,979	14	%	2,014
Other Builders	282,581		2,500		—	2,500	29,289	31,789	228,888	12	%	4,549
Total	$	3,152,652	55,773		13,500	42,273	640,378	696,151	2,179,129	24	%	59,916
Land seller debt and other debt			$	—	—	—	22,003	22,003
Total JV debt			$	55,773	13,500	42,273	662,381	718,154

64

The table below indicates the assets, debt and equity of our 10 largest Lennar Homebuilding unconsolidated joint venture investments as of February 28, 2013:

(Dollars in thousands)	Lennar’s Investment		Total JV Assets	Maximum Recourse Debt Exposure to Lennar		Reimbursement Agreements	Net Recourse Debt to Lennar	Total Debt Without Recourse to Lennar	Total JV Debt	Total JV Equity	JV Debt to Total Capital Ratio
Top Ten JVs (1):
Heritage Fields El Toro	$	143,663	1,499,646	18,434		—	18,434	484,416	502,850	898,044	36	%
Central Park West Holdings	54,435		87,311	15,000		13,500	1,500	26,031	41,031	44,748	48	%
Newhall Land Development	47,620		396,244	—		—	—	—	—	277,286	—	%
Ballpark Village	42,727		132,471	—		—	—	46,910	46,910	85,135	36	%
Runkle Canyon	38,472		78,070	—		—	—	—	—	76,944	—	%
MS Rialto Residential Holdings	33,172		267,361	—		—	—	—	—	259,943	—	%
Treasure Island Community Development	27,750		56,862	—		—	—	—	—	55,531	—	%
LS College Park	27,343		54,970	—		—	—	—	—	53,530	—	%
Rocking Horse Partners	20,496		47,874	—		—	—	5,958	5,958	40,980	13	%
Krome Groves Land Trust	19,321		90,001	11,684		—	11,684	23,366	35,050	49,591	41	%
10 largest JV investments	454,999		2,710,810	45,118		13,500	31,618	586,681	631,799	1,841,732	26	%
Other JVs	122,343		441,842	10,655		—	10,655	53,697	64,352	337,397	16	%
Total	$	577,342	3,152,652	55,773		13,500	42,273	640,378	696,151	2,179,129	24	%
Land seller debt and other debt				$	—	—	—	22,003	22,003
Total JV debt				$	55,773	13,500	42,273	662,381	718,154

(1) All of the joint ventures presented in the table above operate in our Homebuilding West segment except for Rocking Horse Partners and Willow Springs Properties, which operate in our Homebuilding Central segment and MS Rialto Residential Holdings, which operates in all of our homebuilding segments and Homebuilding Other.

The table below indicates the percentage of assets, debt and equity of our 10 largest Lennar Homebuilding unconsolidated joint venture investments, as of February 28, 2013:

	% of Total JV Assets		% of Maximum Recourse Debt Exposure to Lennar		% of Net Recourse Debt to Lennar		% of Total Debt Without Recourse to Lennar		% of Total JV Equity
10 largest JVs	86	%	81	%	75	%	92	%	85	%
Other JVs	14	%	19	%	25	%	8	%	15	%
Total	100	%	100	%	100	%	100	%	100	%

Rialto Investments: Investments in Unconsolidated Entities

In 2010, 2011 and 2012, the Rialto segment obtained investors in Fund I who made equity commitments of $700 million (including $75 million committed by us). All capital commitments have been called and funded. Fund I is closed to additional commitments. During the three months ended February 28, 2013, we received distributions of $7.7 million as a return of capital. During the three months ended February 29, 2012, we contributed $7.3 million to Fund I. As of February 28, 2013 and November 30, 2012, the carrying value of our investment in Fund I was $97.6 million and $98.9 million, respectively. For the three months ended February 28, 2013 and February 29, 2012, our share of earnings from Fund I was $6.4 million and $7.6 million, respectively.

In December 2012, our Rialto segment completed the first closing of its second real estate investment fund ("Fund II") with initial equity commitments of approximately $260 million (including $100 million committed by us). Among other things, Fund II's documents prohibit us, including our Rialto segment, from acquiring real estate assets that might be suitable for Fund II, before Fund II is fully invested or committed, other than residential properties we acquire in connection with our

65

homebuilding activities. In March 2013, $75 million of the $260 million in equity commitments was called, of which, we contributed our portion of approximately $29 million.

Additionally, another subsidiary in our Rialto segment has approximately a 5% investment in the Servicer Provider, which provides services to the consolidated LLCs, among others. As of both February 28, 2013 and November 30, 2012, the carrying value of our investment in the Servicer Provider was $8.4 million.

Summarized condensed financial information on a combined 100% basis related to Rialto’s investment in unconsolidated entities that are accounted for by the equity method was as follows:

Balance Sheets

(In thousands)	February 28, 2013		November 30, 2012
Assets:
Cash and cash equivalents	$	82,820	299,172
Loans receivable	388,033		361,286
Real estate owned	187,413		161,964
Investment securities	234,505		182,399
Investments in real estate partnerships	127,931		72,903
Other assets	182,528		199,839
	$	1,203,230	1,277,563
Liabilities and equity:
Accounts payable and other liabilities	$	145,115	155,928
Notes payable	80,213		120,431
Partner loans	163,516		163,516
Equity	814,386		837,688
	$	1,203,230	1,277,563

Statements of Operations

	Three Months Ended
	February 28,		February 29,
(In thousands)	2013		2012
Revenues	$	53,343	122,405
Costs and expenses	59,114		51,185
Other income, net (1)	56,001		266,440
Net earnings of unconsolidated entities	$	50,230	337,660
Rialto Investments equity in earnings from unconsolidated entities	$	6,173	18,458

(1) Other income, net, for the three months ended February 29, 2012 includes the AB PPIP Fund’s mark-to-market unrealized gains and unrealized losses, as well as realized gains from the sale of investments in the portfolio underlying the AB PPIP fund, all of which our portion is a small percentage.

66

Option Contracts

We have access to land through option contracts, which generally enables us to control portions of properties owned by third parties (including land funds) and unconsolidated entities until we have determined whether to exercise the options.

The table below indicates the number of homesites owned and homesites to which we had access through option contracts with third parties (“optioned”) or unconsolidated JVs (i.e., controlled homesites) at February 28, 2013 and February 29, 2012:

	Controlled Homesites
February 28, 2013	Optioned	JVs	Total	Owned Homesites	Total Homesites
East	4,709	283	4,992	35,241	40,233
Central	3,293	1,175	4,468	18,290	22,758
West	2,345	5,803	8,148	32,011	40,159
Southeast Florida	1,925	351	2,276	8,281	10,557
Houston	1,143	272	1,415	12,356	13,771
Other	1,205	38	1,243	5,889	7,132
Total homesites	14,620	7,922	22,542	112,068	134,610

	Controlled Homesites
February 29, 2012	Optioned	JVs	Total	Owned Homesites	Total Homesites
East	4,389	379	4,768	33,066	37,834
Central	996	1,199	2,195	16,137	18,332
West	996	6,045	7,041	27,860	34,901
Southeast Florida	961	333	1,294	8,402	9,696
Houston	903	295	1,198	9,800	10,998
Other	107	18	125	5,200	5,325
Total homesites	8,352	8,269	16,621	100,465	117,086

We evaluate all option contracts for land to determine whether they are VIEs and, if so, whether we are the primary beneficiary of certain of these option contracts. Although we do not have legal title to the optioned land, if we are deemed to be the primary beneficiary, we are required to consolidate the land under option at the purchase price of the optioned land. During the three months ended February 28, 2013, the effect of consolidation of these option contracts was a net increase of $6.4 million to consolidated inventory not owned with a corresponding increase to liabilities related to consolidated inventory not owned in our condensed consolidated balance sheet as of February 28, 2013. To reflect the purchase price of the inventory consolidated, we reclassified the related option deposits from land under development to consolidated inventory not owned in the accompanying condensed consolidated balance sheet as of February 28, 2013. The liabilities related to consolidated inventory not owned primarily represent the difference between the option exercise prices for the optioned land and our cash deposits. The increase to consolidated inventory not owned was offset by our exercise of options to acquire land under certain contracts previously consolidated, resulting in a net decrease in consolidated inventory not owned of $1.4 million for the three months ended February 28, 2013.

Our exposure to loss related to our option contracts with third parties and unconsolidated entities consisted of our non-refundable option deposits and pre-acquisitions costs totaling $134.6 million and $176.7 million, respectively, at February 28, 2013 and November 30, 2012. Additionally, we had posted $38.9 million and $42.5 million, respectively, of letters of credit in lieu of cash deposits under certain option contracts as of February 28, 2013 and November 30, 2012.

67

Contractual Obligations and Commercial Commitments

During the three months ended February 28, 2013, our contractual obligations and commercial commitments with regard to debt related to our operations changed. During the three months ended February 28, 2013, we issued $275 million aggregate principal amount of our 4.125% senior notes due 2017 and an additional $175 million aggregate principal amount of our 4.750% senior notes due 2022. During the three months ended February 28, 2013, we also retired $304.1 million of Rialto Investments notes payable. The following summarizes our contractual debt obligations as of February 28, 2013:

	Payments Due by Period
(In thousands)	Total		Nine Months ending November 30, 2013	December 1, 2013 through November 30, 2014	December 1, 2014 through November 30, 2016	December 1, 2016 through November 30, 2018	Thereafter
Lennar Homebuilding - Senior notes and other debts payable	$	4,505,662	212,138	389,327	902,673	1,086,588	1,914,936
Lennar Financial Services - Notes and other     debts payable	311,933		311,933	—	—	—	—
Interest commitments under interest      bearing debt (1)	1,117,967		168,143	215,323	347,177	205,514	181,810
Rialto Investments - Notes payable (2)	270,357		12,323	191,510	64,048	2,324	152
Operating leases	103,922		20,633	22,693	28,039	16,677	15,880
Total contractual obligations (3)	$	6,309,841	725,170	818,853	1,341,937	1,311,103	2,112,778

(1) Interest commitments on variable interest-bearing debt are determined based on the interest rate as of February 28, 2013.

(2) Amount includes $167.2 million of notes payable that was consolidated as part of the LLC consolidation related to the FDIC transaction and is non-recourse to Lennar; however, $4.7 million of cash collections on loans in excess of expenses had been deposited in a defeasance account established for the repayment of the FDIC notes payable.

(3) Total contractual obligations excludes our gross unrecognized tax benefits of $8.8 million as of February 28, 2013 because we are unable to make reasonable estimates as to the period of cash settlement with the respective taxing authorities.

We are subject to the usual obligations associated with entering into contracts (including option contracts) for the purchase, development and sale of real estate in the routine conduct of our business. Option contracts for the purchase of land generally enable us to defer acquiring portions of properties owned by third parties and unconsolidated entities until we have determined whether to exercise our options. This reduces our financial risk associated with land holdings. At February 28, 2013, we had access to 22,542 homesites through option contracts with third parties and unconsolidated entities in which we have investments. At February 28, 2013, we had $134.6 million of non-refundable option deposits and pre-acquisition costs related to certain of these homesites and $38.9 million of letters of credit posted in lieu of cash deposits under certain option contracts.

At February 28, 2013, we had letters of credit outstanding in the amount of $324.8 million (which included the $38.9 million of letters of credit discussed above). These letters of credit are generally posted either with regulatory bodies to guarantee our performance of certain development and construction activities, or in lieu of cash deposits on option contracts, for insurance risks, credit enhancements and as other collateral. Additionally, at February 28, 2013, we had outstanding performance and surety bonds related to site improvements at various projects (including certain projects in our joint ventures) of $614.7 million. Although significant development and construction activities have been completed related to these site improvements, these bonds are generally not released until all of the development and construction activities are completed. As of February 28, 2013, there were approximately $360.6 million, or 59%, of anticipated future costs to complete related to these site improvements. We do not presently anticipate any draws upon these bonds or letters of credit, but if any such draws occur, we do not believe they would have a material effect on our financial position, results of operations or cash flows.

Our Lennar Financial Services segment had a pipeline of loan applications in process of $1.3 billion at February 28, 2013. Loans in process for which interest rates were committed to the borrowers and builder commitments for loan programs totaled approximately $386.7 million as of February 28, 2013. Substantially all of these commitments were for periods of 60 days or less. Since a portion of these commitments is expected to expire without being exercised by the borrowers or because borrowers may not meet certain criteria at the time of closing, the total commitments do not necessarily represent future cash requirements.

Our Lennar Financial Services segment uses mandatory mortgage-backed securities (“MBS”) forward commitments, option contracts and investor commitments to hedge our 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 our counterparties to investment banks, federally regulated bank affiliates and other investors meeting our credit standards. Our risk, in the event of default by the purchaser, is the difference

68

between the contract price and fair value of the MBS forward commitments and option contracts. At February 28, 2013, we had open commitments amounting to $553.5 million to sell MBS with varying settlement dates through May 2013.

(3) New Accounting Pronouncements

See Note 16 of our condensed consolidated financial statements included under Item 1 of this Report for a discussion of new accounting pronouncements applicable to our Company.

(4) Critical Accounting Policies

We believe that there have been no significant changes to our critical accounting policies during the three months ended February 28, 2013 as compared to those we disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended November 30, 2012.

69

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to market risks related to fluctuations in interest rates on our investments, debt obligations, loans held-for-sale and loans held-for-investment. We utilize forward commitments and option contracts to mitigate the risks associated with our mortgage loan portfolio.

During the three months ended February 28, 2013, our market risks with regard to debt related to our operations changed. During the three months ended February 28, 2013, we issued $275 million aggregate principal amount of our 4.125% Senior Notes and an additional $175 million aggregate principal amount of our 4.750% Senior Notes. During the three months ended February 28, 2013, we also retired $304.1 million of Rialto Investments notes payable.

Information Regarding Interest Rate Sensitivity

Principal (Notional) Amount by

Expected Maturity and Average Interest Rate

February 28, 2013

	Nine Months Ending November 30,			Years Ending November 30,														Fair Value at February 28,
(Dollars in millions)	2013			2014		2015		2016		2017		2018		Thereafter		Total		2013
LIABILITIES:
Lennar Homebuilding:
Senior Notes and    other debts payable
Fixed rate	$	93.2		284.0		507.1		256.9		394.9		648.7		1,914.9		4,099.7		5,117.3
Average interest rate	2.0		%	5.4	%	5.6	%	6.4	%	12.3	%	5.6	%	3.5	%	5.2	%	—
Variable rate	$	119.0		105.3		106.2		32.5		43.0		—		—		406.0		428.7
Average interest rate	3.8		%	7.1	%	5.2	%	7.6	%	3.2	%	—		—		5.3	%	—
Lennar Financial Services:
Variable rate	$	311.9		—		—		—		—		—		—		311.9		311.9
Average interest rate	2.7		%	—		—		—		—		—		—		2.7	%	—
Rialto Investments:
Fixed rate (1)	$	12.3		158.5		1.2		4.8		1.2		1.2		0.2		179.4		178.5
Average interest rate	0.8		%	0.1	%	6.0	%	6.2	%	5.9	%	5.9	%	6.0	%	0.4	%	—
Variable rate	$	—		33.0		57.9		—		—		—		—		90.9		86.0
Average interest rate	—			4.5	%	4.5	%	—		—		—		—		4.5	%	—

(1) Amount includes $167.2 million of notes payable that was consolidated as part of the LLC consolidation related to the FDIC transaction and is non-recourse to Lennar; however, $4.7 million of cash collections on loans in excess of expenses had been deposited in a defeasance account established for the repayment of the FDIC notes payable.

Item 4. Controls and Procedures

Our Chief Executive Officer and Chief Financial Officer participated in an evaluation by our management of the effectiveness of our disclosure controls and procedures as of the end of our fiscal quarter that ended on February 28, 2013. Based on their participation in that evaluation, our CEO and CFO concluded that our disclosure controls and procedures were effective as of February 28, 2013 to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and to ensure that information required to be disclosed in our reports filed or furnished under the Securities Exchange Act of 1934, as amended, is accumulated and communicated to our management, including our CEO and CFO, as appropriate, to allow timely decisions regarding required disclosures.

Our CEO and CFO also participated in an evaluation by our management of any changes in our internal control over financial reporting that occurred during the quarter ended February 28, 2013. That evaluation did not identify any changes that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

70

Part II. Other Information

Item 1 - 5. Not Applicable

Item 6. Exhibits

10.1.	Indenture dated February 4, 2013, between Lennar and the Bank of New York Mellon Trust Company, N.A., as trustee (relating to Lennar's 4.125% Senior Notes due 2018).
31.1.	Rule 13a-14(a) certification by Stuart A. Miller, Chief Executive Officer.
31.2.	Rule 13a-14(a) certification by Bruce E. Gross, Vice President and Chief Financial Officer.
32.	Section 1350 certifications by Stuart A. Miller, Chief Executive Officer, and Bruce E. Gross, Vice President and Chief Financial Officer.
101.	The following financial statements from Lennar Corporation Quarterly Report on Form 10-Q for the quarter ended February 28, 2013, filed on April 9, 2013, were formatted in XBRL (Extensible Business Reporting Language); (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statements of Cash Flows and (iv) the Notes to Condensed Consolidated Financial Statements.*

* In accordance with Rule 406T of Regulation S-T, the XBRL related to information in Exhibit 101 to this Quarterly Report on Form 10-Q shall not be deemed to be “filed” for purposes of Section 18 of Exchange Act, or otherwise subject to the liability of that section, and shall not be part of any registration or other document filed under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

71

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Lennar Corporation
	(Registrant)
Date: April 9, 2013	/s/    Bruce E. Gross
	Bruce E. Gross
	Vice President and Chief Financial Officer
Date: April 9, 2013	/s/    David M. Collins
	David M. Collins
	Controller

72

EX-10.1

Exhibit 10.1

LENNAR CORPORATION

as Issuer,

the GUARANTORS

party hereto

and

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

as Trustee

INDENTURE

Dated as of February 4, 2013

4.125% Senior Notes due 2018, Series A

4.125% Senior Notes due 2018, Series B

TIA Section		Indenture Section
310	(a)(1)	7.10
	(a)(2)	7.10
	(a)(3)	N.A.
	(a)(4)	N.A.
	(a)(5)	7.10
	(b)	7.8; 7.10; 11.2
	(c)	N.A.
311	(a)	7.11
	(b)	7.11
	(c)	N.A.
312	(a)	2.5
	(b)	11.4
	(c)	11.4
313	(a)	7.6
	(b)(1)	N.A.
	(b)(2)	N.A.
	(c)	7.6; 11.2
	(d)	7.6
314	(a)	4.2; 4.4; 11.2
	(b)	N.A.
	(c)(1)	7.2; 11.5
	(c)(2)	7.2; 11.5
	(c)(3)	N.A.
	(d)	N.A.
	(e)	11.6
	(f)	N.A.
315	(a)	7.1(b)
	(b)	7.5; 11.2
	(c)	7.1(a)
	(d)	6.5; 7.1(c)
	(e)	6.12
316	(a)(1)(A)	6.5
	(a)(1)(B)	6.4
	(a)(2)	N.A.
	(b)	6.7
	(c)	1.1, 2.5, 9.4
317	(a)(1)	6.8
	(a)(2)	6.9
	(b)	2.4
318	(a)	11.1
	(c)	11.1

N.A. means Not Applicable.
Note:	This cross-reference table shall not, for any purpose, be deemed to be a part of the Indenture.

(i)

ARTICLE I.	DEFINITIONS AND INCORPORATION BY REFERENCE	1
	Section 1.1. Definitions	1
	Section 1.2. Incorporation by Reference of TIA	10
	Section 1.3. Rules of Construction	10
ARTICLE II.	THE NOTES	11
	Section 2.1. Form and Dating	11
	Section 2.2. Execution and Authentication; Aggregate Principal Amount	12
	Section 2.3. Registrar and Paying Agent	12
	Section 2.4. Paying Agent to Hold Assets in Trust	13
	Section 2.5. Holder Lists	13
	Section 2.6. Transfer and Exchange	13
	Section 2.7. Replacement Notes	14
	Section 2.8. Outstanding Notes	14
	Section 2.9. Treasury Notes	15
	Section 2.10. Temporary Notes	15
	Section 2.11. Cancellation	15
	Section 2.12. Defaulted Interest	15
	Section 2.13. CUSIP Number	16
	Section 2.14. Deposit of Monies	16
	Section 2.15. Restrictive Legends	17
	Section 2.16. Book-Entry Provisions for Global Security	17
	Section 2.17. Special Transfer Provisions	18
	Section 2.18. Additional Interest Under Registration Rights Agreement	21
ARTICLE III.	REDEMPTION	21
	Section 3.1. Optional Redemption by the Company	21
ARTICLE IV.	COVENANTS	22
	Section 4.1. Payment of Notes	22
	Section 4.2. Reporting	22
	Section 4.3. Corporate Existence	23
	Section 4.4. Compliance Certificate	23
	Section 4.5. Further Instruments and Acts	23
	Section 4.6. Limitations on Liens	23
	Section 4.7. Sale-Leaseback Transactions	25
	Section 4.8. Furnishing Guarantees	26
	Section 4.9. Change of Control	27
ARTICLE V.	SUCCESSOR CORPORATION	30
	Section 5.1. Company May Consolidate, etc., Only on Certain Terms	30
	Section 5.2. Successor Corporation Substituted	30
ARTICLE VI.	DEFAULTS AND REMEDIES	30
	Section 6.1. Events of Default	30
	Section 6.2. Acceleration of Maturity; Rescission and Annulment	31
	Section 6.3. Other Remedies	33

(ii)

	Section 6.4. Waiver of Existing Defaults	33
	Section 6.5. Control by Majority	33
	Section 6.6. Payments of Notes on Default; Suit Therefor	33
	Section 6.7. Limitation on Suits	34
	Section 6.8. Collection Suit by Trustee	34
	Section 6.9. Trustee May File Proofs of Claim	34
	Section 6.10. Restoration of Positions	35
	Section 6.11. Priorities	34
	Section 6.12. Undertaking for Costs	35
	Section 6.13. Stay, Extension or Usury Laws	35
	Section 6.14 Liability of Stockholders, Officers, Directors and Incorporators	36
ARTICLE VII.	TRUSTEE	36
	Section 7.1. Duties of Trustee	36
	Section 7.2. Rights of Trustee	37
	Section 7.3. Individual Rights of Trustee	38
	Section 7.4. Trustee’s Disclaimer	38
	Section 7.5. Notice of Defaults	39
	Section 7.6. Reports by Trustee	39
	Section 7.7. Compensation and Indemnity	39
	Section 7.8. Replacement of Trustee	40
	Section 7.9. Successor Trustee by Merger, etc	41
	Section 7.10. Eligibility; Disqualification	41
	Section 7.11. Preferential Collection of Claims	41
ARTICLE VIII.	DISCHARGE OF INDENTURE	41
	Section 8.1. Termination of the Company’s Obligations	41
	Section 8.2. Application of Trust Money	42
	Section 8.3. Officers’ Certificate; Opinion of Counsel	42
	Section 8.4. Repayment to the Company	42
	Section 8.5. Reinstatement	42
ARTICLE IX.	MODIFICATION OF THE INDENTURE	43
	Section 9.1. Without Consent of Holders	43
	Section 9.2. With Consent of Holders	43
	Section 9.3. Compliance with Trust Indenture Act	44
	Section 9.4. Revocation and Effect of Consents	44
	Section 9.5. Notation on or Exchange of Notes	44
	Section 9.6. Trustee to Sign Amendments, etc	44
ARTICLE X.	GUARANTEE OF NOTES	45
	Section 10.1. Unconditional Guarantee	45
	Section 10.2. Limitations on Guarantees; Release or Suspension of Particular Guarantors’ Obligations	46
	Section 10.3. Execution and Delivery of Guarantee	46
	Section 10.4. Release of a Guarantor due to Extraordinary Events	47
	Section 10.5. Waiver of Subrogation	47
	Section 10.6. No Set-Off	47
	Section 10.7. Obligations Absolute	48

(iii)

	Section 10.8. Obligations Continuing	48
	Section 10.9. Obligations Not Reduced	48
	Section 10.10. Obligations Reinstated	48
	Section 10.11. Obligations Not Affected	48
	Section 10.12. Waiver	49
	Section 10.13. No Obligation to Take Action Against the Company	50
	Section 10.14. Dealing with the Company and Others	50
	Section 10.15. Default and Enforcement	50
	Section 10.16. Amendment, etc	50
	Section 10.17. Acknowledgment	51
	Section 10.18. Costs and Expenses	51
	Section 10.19. No Merger or Waiver; Cumulative Remedies	51
	Section 10.20. Survival of Obligations	51
	Section 10.21. Guarantee in Addition to Other Obligations	51
	Section 10.22. Severability	51
	Section 10.23. Successors and Assigns	51
	Section 10.24. Acknowledgement under TIA	52
ARTICLE XI.	MISCELLANEOUS	52
	Section 11.1. TIA Controls	52
	Section 11.2. Notices	52
	Section 11.3. Electronic Instructions/Directions	53
	Section 11.4 Communications by Holders with Other Holders	53
	Section 11.5. Certificate and Opinion as to Conditions Precedent	53
	Section 11.6. Statements Required in Certificate or Opinion	54
	Section 11.7. Rules by Trustee, Paying Agent, Registrar	54
	Section 11.8. Legal Holidays	54
	Section 11.9. Governing Law	55
	Section 11.10. No Adverse Interpretation of Other Agreements	55
	Section 11.11. No Personal Liability	55
	Section 11.12. Successors	55
	Section 11.13. Duplicate Originals	55
	Section 11.14. Waiver of Jury Trial	55
	Section 11.15. Force Majeure	55
	Section 11.16. Severability	56

(iv)

Exhibit A:	Form of Series A Note
Exhibit B:	Form of Series B Note
Exhibit C:	Restrictive Legend
Exhibit D:	Form of Certificate to be Delivered in Connection with Transfers to Non-QIB Accredited Investors
Exhibit E:	Form of Certificate to be Delivered in Connection with Transfers Pursuant to Regulation S
Exhibit F:	Form of Guarantee
Schedule I:	Guarantors

(v)

INDENTURE, dated as of February 4, 2013, among LENNAR CORPORATION, a Delaware corporation (the “Company”), each of the Guarantors party hereto and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee (the “Trustee”).

The Company has duly authorized the creation of an issue of its 4.125% Senior Notes due 2018, Series A and its 4.125% Senior Notes due 2018, Series B to be issued in exchange for the 4.125% Senior Notes due 2018, Series A pursuant to the Registration Rights Agreement (as defined herein) and, to provide therefor, the Company has duly authorized the execution and delivery of this Indenture. All things necessary to make the Notes (as defined), when duly issued and executed by the Company, and authenticated and delivered hereunder, the valid obligations of the Company, and to make this Indenture a legal, valid and binding agreement of the Company, have been done.

Each party hereto agrees as follows for the benefit of the other parties and for the equal and ratable benefit of the Holders (as defined herein) of the Company’s 4.125% Senior Notes due 2018, Series A and Series B.

ARTICLE I.

DEFINITIONS AND INCORPORATION BY REFERENCE

Section 1.1.    Definitions.

“Additional Interest” shall have the meaning set forth in the Registration Rights Agreement.

“Affiliate”of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person. For the purposes of this definition, “control” when used with respect to any specified Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing.

“Agent” means any Registrar, Paying Agent or co-Registrar.

“Agent Members” has the meaning provided in Section 2.16.

“Authenticating Agent” has the meaning provided in Section 2.2.

“Bankruptcy Law” has the meaning provided in Section 6.1.

“Board of Directors” means the Board of Directors of the Company.

“Board Resolution” means a resolution by the Board of Directors or Executive Committee of the Company certified by its Secretary or an Assistant Secretary as being duly adopted and in full force and effect.

- 1 -

“Business Day” means each Monday, Tuesday, Wednesday, Thursday or Friday which is not a Legal Holiday in New York, New York.

“Capital Stock” means, with respect to any Person, any and all shares, interests, participations or other equivalents (however designated) of or in such Person’s capital stock or other equity interests, and options, rights or warrants to purchase such capital stock or other equity interests, whether now outstanding or issued after the Issue Date.

“Change of Control Offer” has the meaning provided in Section 4.9(a).

“Change of Control Payment” has the meaning provided in Section 4.9(a).

“Change of Control Payment Date” has the meaning provided in Section 4.9(a).

“Class A Common Stock” shall mean the Company’s Class A common stock, par value $.10 per share.

“Comparable Treasury Issue”means the United States Treasury security selected by the Reference Treasury Dealer as having a maturity comparable to the remaining term of the Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Notes.

“Comparable Treasury Price”means, with respect to any Redemption Date, (i) the average of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) on the third Business Day preceding such Redemption Date, as set forth in the daily statistical release (or any successor release) published by the Federal Reserve Bank of New York and designated “Composite 3:30 p.m. Quotations for U.S. Government Securities,” or (ii) if such release (or any successor release) is not published or does not contain such prices on such Business Day, (A) the average of the Reference Treasury Dealer Quotations for such date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (B) if the Quotation Agent obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such Reference Treasury Dealer Quotations.

“Consolidated Net Tangible Assets”means the total amount of assets which would be included on a consolidated balance sheet of the Company and the Restricted Subsidiaries under GAAP (less applicable reserves and other properly deductible items) after deducting therefrom:

(A) all short-term liabilities, i.e., liabilities payable by their terms less than one year from the date of determination and not renewable or extendable at the option of the obligor for a period ending more than one year after such date, and liabilities in respect of retiree benefits other than pensions for which the Restricted Subsidiaries are required to accrue pursuant to former Statement of Financial Accounting Standards No. 106 (now ASC No. 715);

(B) investments in Subsidiaries that are not Restricted Subsidiaries; and

- 2 -

(C) all assets reflected on the Company’s balance sheet as the carrying value of goodwill, trade names, trademarks, patents, unamortized debt discount, unamortized expense incurred in the issuance of debt and other intangible assets.

“Corporate Trust Office” means the principal office of the Trustee at which at any time its corporate trust business shall be administered, which office at the date hereof is located at 10161 Centurion Parkway North, Jacksonville, Florida 32256 Attention:  Corporate Trust Administration, or such other address as the Trustee may designate from time to time by notice to the Holders and the Company, or the principal corporate trust office of any successor Trustee (or such other address as such successor Trustee may designate from time to time by notice to the Holders and the Company).

“Custodian” has the meaning provided in Section 6.1.

“Default” means any event which, upon the giving of notice or passage of time, or both, would be an Event of Default.

“Default Interest Payment Date” has the meaning provided in Section 2.12.

“Depositary” means The Depository Trust Company, its nominees and successors.

“$” means the lawful currency of the United States.

“Event of Default” has the meaning provided in Section 6.1.

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

“Exchange Notes” means the 4.125% Senior Notes due 2018, Series B to be issued in exchange for the Initial Notes pursuant to (i) the Registration Rights Agreement, or (ii) with respect to Initial Notes issued under this Indenture subsequent to the Issue Date pursuant to Section 2.2, a registration rights agreement substantially identical to the Registration Rights Agreement.

“Exchange Offer” has the meaning provided in the Registration Rights Agreement.

“Fiscal Year” means the period commencing on December 1 of a year and ending on the next November 30 or such other period (not to exceed 12 months or 53 weeks) as the Company may from time to time adopt as its fiscal year.

“Funded Debt”of any Person means all Indebtedness for borrowed money created, incurred, assumed or guaranteed in any manner by such Person, and all Indebtedness, contingent or otherwise, incurred or assumed by such Person in connection with the acquisition of any business, property or asset, which in each case matures more than one year after, or which by its terms is renewable or extendible or payable out of the proceeds of similar Indebtedness incurred pursuant to the terms of any revolving credit agreement or any similar agreement at the option of such Person for a period ending more than one year after the date as of which Funded

- 3 -

Debt is being determined; provided, however, that Funded Debt shall not include (i) any Indebtedness for the payment, redemption or satisfaction of which money (or evidences of indebtedness, if permitted under the instrument creating or evidencing such indebtedness) in the necessary amount shall have been irrevocably deposited in trust with a trustee or proper depositary either on or before the maturity or redemption date thereof or (ii) any Indebtedness of such Person to any of its subsidiaries or of any subsidiary to such Person or any other subsidiary or (iii) any Indebtedness incurred in connection with the financing of operating, construction or acquisition projects, provided that the recourse for such Indebtedness is limited to the assets of such projects.

“GAAP” means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as may be approved by a significant segment of the accounting profession of the United States, as in effect on the Issue Date.

“Global Note” has the meaning provided in Section 2.1.

“Guarantee” has the meaning provided in Section 10.1.

“Guarantor” means (a) initially, each of the Guarantors set forth on Schedule I to this Indenture, and (b) each of the Company’s Subsidiaries that in the future executes a Guarantee in substantially the form of Exhibit F hereto in which such Subsidiary agrees to be bound by the terms hereof as Guarantor, in each case, subject to release or suspension as provided in Article X.

“Holder” means a Person in whose name a Note is registered on the Registrar’s books.

“IAI Global Note” means a permanent global note in registered form representing the aggregate principal amount of Notes sold to Institutional Accredited Investors.

“Indebtedness”means, with respect to the Company or any Subsidiary, and without duplication, (a) the principal of and premium, if any, and interest on, and fees, costs, enforcement expenses, collateral protection expenses and other reimbursement or indemnity obligations in respect to all indebtedness or obligations of the Company or any Subsidiary to any Person, including but not limited to banks and other lending institutions, for money borrowed that is evidenced by a note, bond, debenture, loan agreement, or similar instrument or agreement (including purchase money obligations with original maturities in excess of one year and noncontingent reimbursement obligations in respect of amounts paid under letters of credit); (b) all reimbursement obligations and other liabilities (contingent or otherwise) of the Company or any Subsidiary with respect to letters of credit, bank guarantees or bankers’ acceptances, (c) all obligations and liabilities (contingent or otherwise) in respect of leases of the Company or any Subsidiary required, in conformity with GAAP, to be accounted for as capital lease obligations on the balance sheet of the Company, (d) all obligations of the Company or any Subsidiary (contingent or otherwise) with respect to an interest rate or other swap, cap or collar agreement or other similar instrument or agreement or foreign currency hedge, exchange, purchase or

- 4 -

similar instrument or agreement, (e) all direct or indirect guaranties or similar agreements by the Company or any Subsidiary in respect of, and obligations or liabilities (contingent or otherwise) of the Company or such Subsidiary to purchase or otherwise acquire, or otherwise assure a creditor against loss in respect of, indebtedness, obligations or liabilities of another Person of the kind described in clauses (a) through (d), (f) any indebtedness or other obligations, excluding any operating leases the Company or any Subsidiary is currently (or may become) a party to, described in clauses (a) through (d) secured by any Lien existing on property which is owned or held by the Company or Subsidiary, regardless of whether the indebtedness or other obligation secured thereby shall have been assumed by the Company or such Subsidiary and (g) any and all deferrals, renewals, extensions and refinancing of, or amendments, modifications or supplements to, any indebtedness, obligation or liability of the kind described in clauses (a) through (f).

“Indenture” means this Indenture, as amended or supplemented from time to time in accordance with the terms hereof.

“Initial Notes” means, collectively, (i) the 4.125% Senior Notes due 2018, Series A, of the Company issued on the Issue Date and (ii) any other 4.125% Senior Notes due 2018, Series A that are issued under this Indenture, subsequent to the Issue Date, pursuant to Section 2.2, for so long as each such securities constitute Restricted Securities.

“Initial Purchasers” means Citigroup Global Markets Inc., J.P. Morgan Securities LLC, UBS Securities LLC, BMO Capital Markets Corp., Deutsche Bank Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, PNC Capital Markets LLC and Comerica Securities, Inc.

“Institutional Accredited Investor” means an institution that is an “accredited investor” as that term is defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act.

“Interest Payment Date”means the stated maturity of an installment of interest on the Notes.

“Issue Date” means February 4, 2013.

“Legal Holiday” means a Saturday, a Sunday or a day on which banking institutions or trust companies are authorized or required by law to remain closed.

“Lien”means any mortgage, pledge, lien, encumbrance, charge or security interest of any kind.

“Maturity Date” means December 1, 2018.

“Net Worth” of any Person means the total consolidated stockholders’ equity of the Person determined in accordance with GAAP.

“Non-Recourse Indebtedness” means any Indebtedness of the Company or any Restricted Subsidiary for which the holder of such Indebtedness has no recourse, directly or indirectly, to the Company or such Restricted Subsidiary for the principal of, premium, if any, and interest on such Indebtedness, and for which the Company or such Restricted Subsidiary is not, directly or indirectly, obligated or otherwise liable for the principal of, premium, if any, and

- 5 -

interest on such Indebtedness, except pursuant to mortgages, deeds of trust or other security interests or other recourse, obligations or liabilities, in respect of specific land or other real property interests of the Company or such Restricted Subsidiary securing such Indebtedness; provided, however, that recourse, obligations or liabilities solely for indemnities, breaches of warranties or representations contained in such mortgages, deeds of trust or grants of security interests in respect of Indebtedness will not prevent that Indebtedness from being classified as Non-Recourse Indebtedness.

“Non-U.S. Person” means a person who is not a U.S. person, as defined in Regulation S.

“Notes” means, collectively, the Initial Notes, the Private Exchange Notes, if any, and the Unrestricted Notes, treated as a single class of securities, as amended or supplemented from time to time in accordance with the terms of this Indenture, that are issued pursuant to this Indenture.

“Obligations” means all obligations for principal, premium, interest, penalties, fees, indemnifications, reimbursements, damages and other liabilities payable under the documentation governing the Notes.

“Officer” means the Chairman of the Board, any Vice Chairman of the Board, the Chief Executive Officer, the President, any Executive Vice President or Vice President, the Treasurer, the Secretary, the Controller or any Assistant Secretary of a Person.

“Officers’ Certificate” when used with respect to the Company means a certificate signed by two Officers. Each such certificate will comply with Section 314 of the TIA and include the statements described in Section 11.6.

“Opinion of Counsel” means a written opinion acceptable to the Trustee from legal counsel. That counsel may be an employee of or counsel to the Company.

“Paying Agent” has the meaning provided in Section 2.3.

“Permitted Liens”has the meaning provided in Section 4.6.

“Permitted Sale-Leaseback Transactions” has the meaning provided in Section 4.7.

“Person”means any individual, corporation, partnership, limited liability company, joint venture, joint-stock company, trust, unincorporated organization or government or any government agency or political subdivision.

“Physical Notes” has the meaning provided in Section 2.1.

“Primary Treasury Dealer” means a primary U.S. Government securities dealer in the United States.

- 6 -

“Private Exchange Notes” shall have the meaning provided in the Registration Rights Agreement(s).

“Private Placement Legend” means the legend initially set forth on the Initial Notes in the form set forth in Exhibit A.

“Property” of any Person means all types of real, personal, tangible, intangible or mixed property owned by such Person, whether or not included in the most recent consolidated balance sheet of such Person and its Subsidiaries under GAAP.

“Qualified Institutional Buyer” or “QIB” shall have the meaning specified in Rule 144A.

“Quotation Agent”means any Reference Treasury Dealer appointed by the Company.

“Record Date”means the Record Date specified in the Notes.

“Redemption Date” when used with respect to any Note to be redeemed, means the date fixed for such redemption by or pursuant to this Indenture.

“Redemption Price”when used with respect to any Note to be redeemed, means the price at which it is to be redeemed pursuant to this Indenture and the Notes. For the avoidance of doubt, the Redemption Price excludes accrued interest to the Redemption Date.

“Reference Treasury Dealer”means (a) each of Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, UBS Securities LLC and BMO Capital Markets Corp. (or their respective affiliates which are Primary Treasury Dealers), and their respective successors; provided, however, that if any of the foregoing shall not be a Primary Treasury Dealer the Company shall substitute another Primary Treasury Dealer; and (b) any other Primary Treasury Dealer(s) selected by the Company.

“Reference Treasury Dealer Quotations”means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Quotation Agent by such Reference Treasury Dealer at 5:00 p.m. on the third Business Day preceding such Redemption Date.

“Registrar” has the meaning provided in Section 2.3.

“Registration Rights Agreement” means, as applicable, (a) the Registration Rights Agreement dated as of the Issue Date among the Company, the Guarantors and Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, UBS Securities LLC and BMO Capital Markets Corp., as the representatives of the Initial Purchasers, relating to the Notes or (b) any registration rights agreement, substantially identical to the Registration Rights Agreement, entered into among the

- 7 -

Company, the Guarantors and the respective purchasers or their representatives or representative, on substantially identical terms, relating to any Initial Notes issued pursuant to Section 2.2.

“Regulation S” means Regulation S under the Securities Act.

“Regulation S Global Note” means a permanent global note in registered form representing the aggregate principal amount of Notes sold in reliance on Regulation S.

“Remaining Scheduled Payments” means, with respect to any Note to be redeemed, the remaining scheduled payments of the principal (or the portion of the principal) that is being redeemed and interest thereon that would be due after the related Redemption Date but for such redemption; provided, however, that, if such Redemption Date is not an Interest Payment Date with respect to such Note, the amount of the next succeeding scheduled interest payment thereon will be reduced by the amount of interest accrued thereon to such Redemption Date.

“Repurchase Price” means, with respect to any Note to be repurchased, the price at which it is to be repurchased pursuant to this Indenture.

“Restricted Security” has the meaning assigned to such term in Rule 144(a)(3) under the Securities Act; provided, however, that the Trustee shall be entitled to request and conclusively rely on an Opinion of Counsel with respect to whether any Note constitutes a Restricted Security.

“Restricted Subsidiary” means (a) all existing wholly-owned Subsidiaries, other than finance company Subsidiaries and any foreign Subsidiaries, and (b) all future wholly-owned Subsidiaries that become Guarantors, in each case, until such time as such Subsidiary is released in accordance with the terms of this Indenture.

“Rule 144A” means Rule 144A under the Securities Act.

“Sale-Leaseback Transaction” means a sale or transfer made by the Company or a Restricted Subsidiary of any property which is either (A) a manufacturing facility, office building or warehouse whose book value equals or exceeds 1% of Consolidated Net Tangible Assets as of the date of determination, or (B) another property (not including a model home) which exceeds 5% of Consolidated Net Tangible Assets as of the date of determination, if such sale or transfer is made with the agreement, commitment or intention of leasing such property to the Company or a Restricted Subsidiary.

“SEC” means the Securities and Exchange Commission.

“Securities Act” means the Securities Act of 1933, as amended.

“State” means any state of the United States or the District of Columbia.

“Significant Subsidiary” means any Subsidiary (a) whose revenues exceed 10% of the Total Consolidated Revenues of the Company, in each case for the most recent Fiscal Year,

- 8 -

or (b) whose Net Worth exceeds 10% of the Company’s Total Consolidated Stockholders’ Equity, in each case as of the end of the most recent Fiscal Year.

“Subsidiary”means (i) a corporation or other entity of which a majority in voting power of the stock or other interests is owned by the Company, by a Subsidiary of the Company or by the Company and one or more Subsidiaries of the Company or (ii) a partnership, the sole general partner or partners of which are the Company and/or any Subsidiary and of which the Company or any Subsidiary owns at least 25% in value of the equity.

“Total Consolidated Revenues” means, with respect to any date of determination, the Company’s total consolidated revenues as shown on its most recent consolidated statement of operations that is contained or incorporated in the latest annual report on Form 10-K (or equivalent report) or quarterly report on Form 10-Q (or equivalent report) filed with the SEC, and is as of a date not more than 181 days prior to the date of determination, in the case of the consolidated statement of operations contained or incorporated in an annual report on Form 10-K, or 135 days prior to the date of determination, in the case of the consolidated condensed statement of operations contained in a quarterly report on Form 10-Q.

“Total Consolidated Stockholders’ Equity” means, with respect to any date of determination, the Company’s total consolidated stockholders’ equity as shown on its most recent consolidated balance sheet that is contained or incorporated in the latest annual report on Form 10-K (or equivalent report) or quarterly report on Form 10-Q (or equivalent report) filed with the SEC, and is as of a date not more than 181 days prior to the date of determination, in the case of the consolidated balance sheet contained or incorporated in an annual report on Form 10-K, or 135 days prior to the date of determination, in the case of the consolidated condensed balance sheet contained in a quarterly report on Form 10-Q.

“Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date.

“Trustee”means the Person named as such in this Indenture and, subject to the provisions of Article Seven of this Indenture, any successor to that Person.

“TIA” means the Trust Indenture Act of 1939, as amended, as in effect on the date of this Indenture, except as otherwise provided in Section 9.3.

“Trust Officer” means any officer within the corporate trust department of the Trustee, including any vice president, assistant vice president, senior associate, assistant secretary, assistant treasurer, trust officer or any other officer of the Trustee who customarily performs functions similar to those performed by the Persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred because of such Person’s knowledge of and familiarity with the particular subject and who shall have direct responsibility for the administration of this Indenture.

“United States” means the United States of America.

- 9 -

“Unrestricted Notes” means one or more Notes that do not and are not required to bear the Private Placement Legend, including, without limitation, the Exchange Notes.

“U.S. Government Obligations” means direct obligations of, and obligations guaranteed by, the United States of America for the payment of which the full faith and credit of the United States of America is pledged.

“U.S. Legal Tender” means such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts.

Section 1.2.Incorporation by Reference of TIA. Whenever this Indenture refers to a provision of the TIA, such provision is incorporated by reference in, and made a part of, this Indenture. The following TIA terms used in this Indenture have the following meanings:

“indenture securities” means the Notes.

“indenture security holder” means a Holder.

“indenture to be qualified” means this Indenture.

“indenture trustee” or “institutional trustee” means the Trustee.

“obligor” on the indenture securities means the Company or any other obligor on the Notes.

All other TIA terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule and not otherwise defined herein have the meanings assigned to them therein.

Section 1.3.Rules of Construction. Unless the context otherwise requires:

(1)    a term has the meaning assigned to it;

(2)    an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP as of any date of determination;

(3) “or” is not exclusive;

(4)    words in the singular include the plural, and words in the plural include the singular;

(5)    “herein,” “hereof” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision;

(6)    any reference to a statute, law or regulation means that statute, law or regulation as amended and in effect from time to time and includes any successor statute,

- 10 -

law or regulation; provided, however, that any reference to the Bankruptcy Law shall mean the Bankruptcy Law as applicable to the relevant case; and

(7)    any reference to interest on, or in respect of, any Note in this Indenture shall be deemed to include Additional Interest if, in such context, Additional Interest is, was or would be payable pursuant to Section 2.18.

ARTICLE II.THE NOTES

Section 2.1.Form and Dating. The Initial Notes and the Trustee’s certificate of authentication relating thereto shall be substantially in the form of Exhibit A hereto, provided, that any Initial Notes issued in a public offering shall be substantially in the form of Exhibit B hereto. The Exchange Notes and the Trustee’s certificate of authentication relating thereto shall be substantially in the form of Exhibit B hereto. The Notes may have notations, legends or endorsements required by law, stock exchange rule or depositary rule or usage. The Company and the Trustee shall approve the form of the Notes and any notation, legend or endorsement on them. Each Note shall be dated the date of its issuance and authentication and shall show the date of its authentication. The Notes shall be designated as the “4.125% Senior Notes due 2018.”

The terms and provisions contained in the Notes annexed hereto as Exhibits A and B shall constitute, and are hereby expressly made, a part of this Indenture and, to the extent applicable, the Company and the Trustee, by their execution and delivery of this Indenture, expressly agree to such terms and provisions and to be bound thereby.

Notes offered and sold in reliance on Rule 144A and Notes offered and sold in reliance on Regulation S shall be issued initially in the form of one or more permanent global Notes in registered form, substantially in the form set forth in Exhibit A (each, a “Global Note”), deposited with the Trustee, as custodian for the Depositary, duly executed by the Company and authenticated by the Trustee as hereinafter provided and shall bear the legend set forth in Exhibit C. The aggregate principal amount of a Global Note may from time to time be increased or decreased by adjustments made on the records of the Trustee, as custodian for the Depositary, as hereinafter provided.

Notes issued in exchange for interests in a Global Note pursuant to Section 2.16 may be issued and Notes offered and sold in reliance on any other exemption from registration under the Securities Act other than as described in the preceding paragraph shall be issued in the form of permanent certificated Notes in registered form in substantially the form set forth in Exhibit A (the “Physical Notes”).

All Notes offered and sold in reliance on Regulation S shall remain in the form of a Global Note until the consummation of the Exchange Offer pursuant to the Registration Rights Agreement; provided, however, that all of the time periods specified in the Registration Rights Agreement to be complied with by the Company have been so complied with.

- 11 -

Section 2.2.Execution and Authentication; Aggregate Principal Amount. An Officer of the Company (duly authorized by all requisite corporate actions) shall sign and attest to the Notes for the Company by manual or facsimile signature.

If an Officer whose signature is on a Note was an Officer at the time of such execution but no longer holds that office or position at the time the Trustee authenticates the Note, the Note shall nevertheless be valid.

A Note shall not be valid until an authorized signatory of the Trustee manually signs the certificate of authentication on the Note. The signature shall be conclusive evidence that the Note has been authenticated under this Indenture.

The Trustee shall authenticate all (i) Initial Notes, (ii) Private Exchange Notes from time to time for issue only in exchange for a like principal amount of Initial Notes and (iii) Unrestricted Notes from time to time upon a written order of the Company in the form of an Officers’ Certificate of the Company. Each such written order shall specify the amount of Notes to be authenticated and the date on which the Notes are to be authenticated, whether the Notes are to be Initial Notes, Private Exchange Notes or Unrestricted Notes and whether the Notes are to be issued as Physical Notes or Global Notes or such other information as the Trustee may reasonably request.

The Trustee may appoint an authenticating agent (the “Authenticating Agent”) reasonably acceptable to the Company to authenticate Notes. Unless otherwise provided in the appointment, an Authenticating Agent may authenticate Notes whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by such Authenticating Agent. An Authenticating Agent has the same rights as an Agent to deal with the Company or with any Affiliate of the Company.

The Notes shall be issuable in fully registered form only, without coupons, in denominations of $1,000 and integral multiples of $1,000. Subject to applicable law, the aggregate principal amount of the Notes which may be authenticated and delivered on the Issue Date shall not exceed $275 million; provided, however, that the Company may, without the consent of the Holders, issue additional Notes under this Indenture at any time thereafter.

Section 2.3.Registrar and Paying Agent. The Company shall maintain an office or agency (which shall be located in the City of Jacksonville, State of Florida) where (a) Notes may be presented or surrendered for registration of transfer or for exchange (“Registrar”), (b) Notes may be presented or surrendered for payment (“Paying Agent”) and (c) notices and demands to or upon the Company in respect of the Notes and this Indenture may be served. The Registrar shall keep a register of the Notes and of their transfer and exchange. The Company may have one or more co-Registrars and one or more additional paying agents reasonably acceptable to the Trustee. The term “Paying Agent” includes any additional Paying Agent. The Company may act as its own Paying Agent. If the Company elects to act as its own Paying Agent, the Company will notify the Trustee of its election and will hold for the benefit of the Holders all assets for the payment of principal of, premium, if any, or interest on, the Notes.

- 12 -

The Company shall enter into an appropriate agency agreement with any Agent not a party to this Indenture, which agreement shall incorporate the provisions of the TIA and implement the provisions of this Indenture that relate to such Agent. The Company shall notify the Trustee of the name and address of any such Agent. If the Company shall fail to maintain a Registrar or Paying Agent, the Trustee shall act as such.

The Company initially appoints the Trustee as Registrar, Paying Agent and custodian for service of demands and notices in connection with the Notes. Any of the Registrar, the Paying Agent or any other agent may resign upon 30 days’ notice to the Company.

Section 2.4.Paying Agent to Hold Assets in Trust. The Company shall require each Paying Agent other than the Trustee to agree in writing that such Paying Agent shall hold in trust for the benefit of the Holders or the Trustee all assets held by the Paying Agent for the payment of principal of, premium, if any, or interest on, the Notes (whether such assets have been distributed to it by the Company or any other obligor on the Notes), and the Company and the Paying Agent shall notify the Trustee in writing of any Default by the Company (or any other obligor on the Notes) in making any such payment. The Company at any time may require a Paying Agent to distribute all assets held by it to the Trustee and account for any assets disbursed and the Trustee may at any time during the continuance of any payment Default, upon written request to a Paying Agent, require such Paying Agent to distribute all assets held by it to the Trustee and to account for any assets distributed. Upon distribution to the Trustee of all assets that shall have been delivered to the Paying Agent, the Paying Agent shall have no further liability for such assets.

Section 2.5.Holder Lists. The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of the Holders and shall otherwise comply with TIA Section 312(a). If the Trustee is not the Registrar, the Company shall furnish or cause the Registrar to furnish to the Trustee five (5) Business Days before each Record Date and at such other times as the Trustee may request in writing a list as of such date and in such form as the Trustee may reasonably require of the names and addresses of the Holders, which list may be conclusively relied upon by the Trustee, and the Company shall otherwise comply with TIA Section 312(a).

Each date on which such list is issued shall serve as a record date under TIA Section 316(c) for purposes of determining the identity of Holders entitled to vote or consent to any action authorized or permitted by TIA Section 316(a).

Section 2.6.Transfer and Exchange. Subject to Sections 2.16 and 2.17, when Notes are presented to the Registrar or a co-Registrar with a request to register the transfer of such Notes or to exchange such Notes for an equal principal amount of Notes of other authorized denominations, the Registrar or co-Registrar shall register the transfer or make the exchange as requested if its requirements for such transaction are met; provided, however, that the Notes presented or surrendered for registration of transfer or exchange shall be duly endorsed or accompanied by a written instrument of transfer in form satisfactory to the Company, the Trustee and the Registrar or co-Registrar, duly executed by the Holder thereof or his attorney duly authorized in writing. To permit registration of transfers and exchanges, the Company shall execute and the Trustee shall authenticate Notes at the Registrar’s or co-Registrar’s request. No

- 13 -

service charge shall be made for any registration of transfer or exchange, but the Company and the Trustee may require payment of a sum sufficient to cover any transfer tax, fee or similar governmental charge payable in connection therewith (other than any such transfer taxes or similar governmental charge payable upon exchanges or transfers pursuant to Section 2.10 or 3.1, in which event the Company shall be responsible for the payment of such taxes or charges).

The Registrar or co-Registrar shall not be required to register the transfer of or exchange of any Note (i) during a period beginning at the opening of business 15 days before the mailing of a notice of redemption of Notes and ending at the close of business on the day of such mailing and (ii) selected for redemption in whole or in part pursuant to Article III, except the unredeemed portion of any Note being redeemed in part.

Any Holder of a beneficial interest in a Global Note shall, by acceptance of such Global Note, agree that transfers of beneficial interests in such Global Notes may be effected only through a book entry system maintained by the Holder of such Global Note (or its agent), and that ownership of a beneficial interest in the Note shall be required to be reflected in a book entry system.

Section 2.7.Replacement Notes. If a mutilated Note is surrendered to the Trustee or if the Holder of a Note claims that the Note has been lost, destroyed or wrongfully taken, the Company shall issue and the Trustee shall, upon receipt of a written order from the Company, authenticate a replacement Note if the Trustee’s requirements are met. If required by the Trustee or the Company, such Holder must provide an indemnity bond or other indemnity of reasonable tenor, sufficient in the reasonable judgment of the Company and the Trustee, to protect the Company, the Trustee or any Agent from any loss which any of them may suffer if a Note is replaced. Every replacement Note shall constitute an additional obligation of the Company.

Section 2.8.Outstanding Notes. Notes outstanding at any time are all the Notes that have been authenticated by the Trustee except those canceled by it, those delivered to it for cancellation and those described in this Section as not outstanding. Subject to the provisions of Section 2.9, a Note does not cease to be outstanding because the Company or any of its Affiliates holds the Note.

If a Note is replaced pursuant to Section 2.7 (other than a mutilated Note surrendered for replacement), it ceases to be outstanding unless the Trustee receives proof satisfactory to it that the replaced Note is held by a protected purchaser. A mutilated Note ceases to be outstanding upon surrender of such Note and replacement thereof pursuant to Section 2.7.

If, on a Redemption Date, a repurchase date or the Maturity Date, the Paying Agent holds U.S. Legal Tender or U.S. Government Obligations sufficient to pay all of the principal, premium, if any, and interest due on the Notes payable on that date and is not prohibited from paying such money to the Holders pursuant to the terms of this Indenture, then on and after that date such Notes shall be deemed not to be outstanding and interest on them shall cease to accrue.

- 14 -

Section 2.9.Treasury Notes. In determining whether the Holders of the required principal amount of Notes have concurred in any direction, waiver, consent or notice, Notes owned by the Company or an Affiliate of the Company shall be considered as though they are not outstanding, except that for the purposes of determining whether the Trustee shall be protected in relying on any such direction, waiver or consent, only Notes which a Trust Officer of the Trustee has been informed in writing by the Company to be so owned shall be so considered. The Company shall notify the Trustee, in writing, when either it or, to its knowledge, any of its Affiliates repurchases or otherwise acquires Notes, of the aggregate principal amount of such Notes so repurchased or otherwise acquired and such other information as the Trustee may reasonably request and the Trustee shall be entitled to rely thereon.

Section 2.10.Temporary Notes. Until typewritten or printed Notes are ready for delivery, the Company may prepare and the Trustee shall authenticate temporary Notes upon receipt of a written order of the Company in the form of an Officers’ Certificate. The Officers’ Certificate shall specify the amount of temporary Notes to be authenticated and the date on which the temporary Notes are to be authenticated. Temporary Notes shall be substantially in the form of typewritten or printed Notes but may have variations that the Company considers appropriate for temporary Notes and so indicates in the Officers’ Certificate. Without unreasonable delay, the Company shall prepare and the Trustee shall authenticate, upon receipt of a written order of the Company pursuant to Section 2.2, typewritten or printed Notes in exchange for temporary Notes.

Section 2.11.Cancellation. The Company at any time may deliver Notes to the Trustee for cancellation. The Registrar and the Paying Agent shall forward to the Trustee any Notes surrendered to them for transfer, exchange or payment. At the written direction of the Company, the Trustee, or at the direction of the Trustee acting pursuant to such direction from the Company, the Registrar or the Paying Agent, and no one else, shall cancel and, at the written direction of the Company, shall dispose, in its customary manner, of all Notes surrendered for transfer, exchange, payment or cancellation. Subject to Section 2.7, the Company may not issue new Notes to replace Notes that it has paid or delivered to the Trustee for cancellation. If the Company shall acquire any of the Notes, such acquisition shall not operate as a redemption or satisfaction of the Indebtedness represented by such Notes unless and until the same are surrendered to the Trustee for cancellation pursuant to this Section 2.11.

Section 2.12.Defaulted Interest. The Company shall pay from time to time on demand (i) interest on overdue principal and (ii) to the extent lawful, interest on overdue installments of interest (without regard to any applicable grace periods), in each case, at the rate of interest borne by the Notes, plus one percent per annum from and including the relevant payment date to but excluding the date on which such defaulted amounts shall have been paid by the Company. All such interest will be computed on the basis of a 360-day year comprised of twelve 30-day months, and, in the case of a partial month, the actual number of days elapsed.

If the Company defaults in a payment of interest on the Notes, it shall pay the defaulted interest, plus (to the extent lawful) any interest payable on the defaulted interest, to the Persons who are Holders on a subsequent special record date, which special record date shall be the fifteenth day next preceding the date fixed by the Company for the payment of defaulted interest or the next succeeding Business Day if such date is not a Business Day. The Company

- 15 -

shall notify the Trustee in writing of the amount of defaulted interest proposed to be paid on each Note and the date of the proposed payment (a “Default Interest Payment Date”), and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of such defaulted interest or shall make arrangements satisfactory to the Trustee for such deposit on or prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such defaulted interest as provided in this Section; provided,however, that in no event shall the Company deposit monies proposed to be paid in respect of defaulted interest later than 11:00 a.m. New York City time on the proposed Default Interest Payment Date. At least 15 days before the subsequent special record date, the Company shall mail (or cause to be mailed) to each Holder, as of a recent date selected by the Company, with a copy to the Trustee at least 20 days prior to such special record date, a notice that states the subsequent special record date, the Default Interest Payment Date and the amount of defaulted interest, and interest payable on such defaulted interest, if any, to be paid. Notwithstanding the foregoing, any interest which is paid prior to the expiration of the 30-day period set forth in Section 6.1(1) shall be paid to Holders as of the regular record date for the Interest Payment Date for which interest has not been paid. Notwithstanding the foregoing, the Company may make payment of any defaulted interest in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes may be listed, and upon such notice as may be required by such exchange.

Section 2.13.CUSIP Number. In issuing the Notes, the Company may use a “CUSIP” number, and, if so, the Company shall use the CUSIP number in notices of redemption or exchange as a convenience to Holders; provided, however, that any such notice may state that no representation is thereby deemed to be made as to the correctness or accuracy of the CUSIP number printed in the notice or on the Notes, and that reliance may be placed only on the other identification numbers printed on the Notes. The Company shall promptly notify the Trustee in writing of any change in the CUSIP number.

In the event that the Company shall issue and the Trustee shall authenticate any Notes issued under this Indenture subsequent to the Issue Date pursuant to Section 2.2, the Company shall use its reasonable efforts to obtain the same CUSIP number for such Notes as is printed on the Notes outstanding at such time and provide written notice to the Trustee to such effect; provided, however, that if any series of Notes issued under this Indenture subsequent to the Issue Date is determined, pursuant to an Opinion of Counsel of the Company, to be a different class of security than the Notes outstanding at such time for federal income tax or securities laws purposes, the Company shall use its reasonable efforts to obtain a “CUSIP” number for such Notes that is different than the CUSIP number printed on the Notes then outstanding and cause such opinion to be delivered to the Trustee. Notwithstanding the foregoing or any other provision herein to the contrary, all Notes issued under this Indenture shall vote and consent together on all matters as one class and no series of Notes will have the right to vote or consent as a separate class on any matter.

Section 2.14.Deposit of Monies. Prior to 11:00 a.m. New York City time on each Interest Payment Date, Maturity Date or Redemption Date, the Company shall have deposited with the Paying Agent in immediately available funds money sufficient to make cash payments, if any, due on such Interest Payment Date, Maturity Date or Redemption Date, as the

- 16 -

case may be, in a timely manner which permits the Paying Agent to remit payment to the Holders on such Interest Payment Date, Maturity Date or Redemption Date, as the case may be.

Section 2.15.Restrictive Legends. Each Global Note and Physical Note that constitutes a Restricted Security shall bear the Private Placement Legend on the face thereof until after the first anniversary of the later of the Issue Date and the last date on which the Company or any Affiliate of the Company was the owner of such Note (or any predecessor security) (or such shorter period of time as permitted by Rule 144 under the Securities Act or any successor provision thereunder, provided that any restrictive legend shall have been removed) (or such longer period of time as may be required under the Securities Act or applicable state securities laws in an Opinion of Counsel for the Company, unless otherwise agreed by the Company and the Holder thereof); provided, however, that if any Initial Notes are issued after the Issue Date pursuant to Section 2.2, the period of resale restrictions applicable to Initial Notes previously offered and sold in reliance on Rule 144A under the Securities Act that constitute Restricted Securities shall automatically be extended to the last day of the period of any resale restrictions imposed on such additional Initial Notes issued pursuant to Section 2.2.

Each Global Note shall also bear the legend as set forth in Exhibit C.

Section 2.16.Book-Entry Provisions for Global Security.

(a)The Global Notes initially shall (i) be registered in the name of the Depositary or the nominee of such Depositary, (ii) be delivered to the Trustee as custodian for such Depositary and (iii) bear the legend as set forth in Exhibit C.

(b)Members of, or participants in, the Depositary (“Agent Members”) shall have no rights under this Indenture with respect to any Global Note held on their behalf by the Depositary, or the Trustee as its custodian, or under the Global Notes, and the Depositary may be treated by the Company, the Trustee and any Agent of the Company or the Trustee as the absolute owner of such Global Note for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Company, the Trustee or any Agent of the Company or the Trustee from giving effect to any written certification, proxy or other authorization furnished by the Depositary or impair, as between the Depositary and its Agent Members, the operation of customary practices governing the exercise of the rights of a Holder of any Note.

(c)Transfers of a Global Note shall be limited to transfers in whole, but not in part, to the Depositary, its successors or their respective nominees. Interests of beneficial owners in a Global Note may be transferred or exchanged for Physical Notes in accordance with the rules and procedures of the Depositary and the provisions of Section 2.17. In addition, Physical Notes shall be transferred to all beneficial owners in exchange for their beneficial interests in a Global Note if (i) the Depositary notifies the Company that it is unwilling or unable to continue as Depositary for the Global Notes and a successor depositary is not appointed by the Company within 90 days of such notice or (ii) an Event of Default has occurred and is continuing and the Registrar has received a written request from the Depositary to issue Physical Notes.

(d)In connection with any transfer or exchange of a portion of the beneficial interest in a Global Note to beneficial owners pursuant to paragraph (c) of this Section 2.16, the

- 17 -

Registrar shall (if one or more Physical Notes are to be issued) reflect on its books and records the date and a decrease in the principal amount of such Global Note in an amount equal to the principal amount of the beneficial interest in the Global Note to be transferred, and the Company shall execute and the Trustee, upon receipt of a written order from the Company, shall authenticate and deliver, one or more Physical Notes of like tenor and amount.

(e)In connection with the transfer of an entire Global Note to beneficial owners pursuant to paragraph (c) of this Section 2.16, such Global Note shall be deemed to be surrendered to the Trustee for cancellation, and the Company shall execute and the Trustee, upon receipt of a written order from the Company, shall authenticate and deliver, to each beneficial owner identified by the Depositary in exchange for its beneficial interest in the Global Note, an equal aggregate principal amount of Physical Notes of authorized denominations.

(f)Any Physical Note constituting a Restricted Security delivered in exchange for an interest in a Global Note pursuant to paragraph (c) of this Section 2.16 shall, except as otherwise provided by Section 2.17(a)(i)(x) and (c), bear the Private Placement Legend.

(g)The Holder of a Global Note may grant proxies and otherwise authorize any Person, including Agent Members and Persons that may hold interests through Agent Members, to take any action which a Holder is entitled to take under this Indenture or the Notes.

Section 2.17.Special Transfer Provisions.

(a)Transfers to Non-QIB Institutional Accredited Investors and Non-U.S. Persons. The following provisions shall apply with respect to the registration of any proposed transfer of a Note constituting a Restricted Security to any Institutional Accredited Investor which is not a QIB or to any Non-U.S. Person:

(i)the Registrar shall register the transfer of any Note constituting a Restricted Security, whether or not such Note bears the Private Placement Legend, if (x) the requested transfer is after the first anniversary of the Issue Date (provided, however, that (1) neither the Company nor any Affiliate of the Company has held any beneficial interest in such Note, or portion thereof, or predecessor security at any time on or prior to the first anniversary of the Issue Date and (2) if any Initial Notes are issued after the Issue Date pursuant to Section 2.2, the period of resale restrictions applicable to such Note shall automatically be extended to the last day of the period of any resale restrictions imposed on such additional Initial Notes issued pursuant to Section 2.2) or (y) (1) in the case of a transfer to an Institutional Accredited Investor which is not a QIB (excluding Non-U.S. Persons), the proposed transferee has delivered to the Registrar a certificate substantially in the form of Exhibit D hereto or (2) in the case of a transfer to a Non-U.S. Person, the proposed transferor has delivered to the Registrar a certificate substantially in the form of Exhibit E hereto; and

(ii)if the proposed transferee is an Agent Member and the Notes to be transferred consist of Physical Notes which after transfer are to be evidenced by an interest in the IAI Global Note or Regulation S Global Note, as the case may be, upon

- 18 -

receipt by the Registrar of (x) written instructions given in accordance with the Depositary’s and the Registrar’s procedures and (y) the appropriate certificate, if any, required by clause (y) of paragraph (i) above, the Registrar shall register the transfer and reflect on its books and records the date and an increase in the principal amount of the IAI Global Note or Regulation S Global Note, as the case may be, in an amount equal to the principal amount of Physical Notes to be transferred, and the Trustee shall cancel the Physical Notes so transferred; and

(iii)if the proposed transferor is an Agent Member seeking to transfer an interest in a Global Note, upon receipt by the Registrar of (x) written instructions given in accordance with the Depositary’s and the Registrar’s procedures and (y) the appropriate certificate, if any, required by clause (y) of paragraph (i) above, the Registrar shall register the transfer and reflect on its books and records the date and (A) a decrease in the principal amount of the Global Note from which such interests are to be transferred in an amount equal to the principal amount of the Notes to be transferred and (B) an increase in the principal amount of the IAI Global Note or the Regulation S Global Note, as the case may be, to which the interests are to be transferred in an amount equal to the principal amount of the Notes to be transferred.

(b)Transfers to QIBs. The following provisions shall apply with respect to the registration of any proposed transfer of a Note constituting a Restricted Security to a QIB (excluding transfers to Non-U.S. Persons):

(i)the Registrar shall register the transfer of any Restricted Security if such transfer is being made by a proposed transferor who has checked the box provided for on the form of Note stating, or has otherwise advised the Company and the Registrar in writing, that the sale has been made in compliance with the provisions of Rule 144A to a transferee who has signed the certification provided for on the form of Note stating, or has otherwise advised the Company and the Registrar in writing, that it is purchasing the Note for its own account or an account with respect to which it exercises sole investment discretion and that it and any such account is a QIB within the meaning of Rule 144A, and is aware that the sale to it is being made in reliance on Rule 144A and acknowledges that it has received such information regarding the Company as it has requested pursuant to Rule 144A or has determined not to request such information and that it is aware that the transferor is relying upon its foregoing representations in order to claim the exemption from registration provided by Rule 144A; and

(ii)if the proposed transferee is an Agent Member, and the Notes to be transferred consist of Physical Notes which after transfer are to be evidenced by an interest in a Global Note, upon receipt by the Registrar of written instructions given in accordance with the Depositary’s and the Registrar’s procedures, the Registrar shall reflect on its books and records the date and an increase in the principal amount of such Global Note in an amount equal to the principal amount of the Physical Notes to be transferred, and the Trustee shall cancel the Physical Notes so transferred; and

(iii)if the proposed transferor is an Agent Member seeking to transfer an interest in the IAI Global Note or the Regulation S Global Note, upon receipt by the

- 19 -

Registrar of written instructions given in accordance with the Depositary’s and the Registrar’s procedures, the Registrar shall register the transfer and reflect on its books and records the date and (A) a decrease in the principal amount of the IAI Global Note or the Regulation S Global Note, as the case may be, in an amount equal to the principal amount of the Notes to be transferred and (B) an increase in the principal amount of the Global Note in an amount equal to the principal amount of the Notes to be transferred.

(c)Restrictions on Transfer and Exchange of Global Notes. Notwithstanding any other provisions of this Indenture, a Global Note may not be transferred as a whole except by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary.

(d)Private Placement Legend. Upon the transfer, exchange or replacement of Notes not bearing the Private Placement Legend, the Registrar shall deliver Notes that do not bear the Private Placement Legend. Upon the transfer, exchange or replacement of Notes bearing the Private Placement Legend, the Registrar shall deliver only Notes that bear the Private Placement Legend unless (i) the requested transfer is after the first anniversary of the Issue Date (provided, however, that (x) neither the Company nor any Affiliate of the Company has held any beneficial interest in such Note, or portion thereof, or any predecessor security at any time prior to or on the first anniversary of the Issue Date and (y) if any Initial Notes are issued after the Issue Date pursuant to Section 2.2, the period of resale restrictions applicable to such Note bearing the Private Placement Legend shall automatically be extended to the last day of the period of any resale restrictions imposed on such additional Initial Notes issued pursuant to Section 2.2), or (ii) there is delivered to the Registrar an Opinion of Counsel reasonably satisfactory to the Company and the Trustee to the effect that neither such legend nor the related restrictions on transfer are required in order to maintain compliance with the provisions of the Securities Act.

(e)General. By its acceptance of any Note bearing the Private Placement Legend, each Holder of such a Note acknowledges the restrictions on transfer of such Note set forth in this Indenture and in the Private Placement Legend and agrees that it will transfer such Note only as provided in this Indenture.

The Registrar shall retain copies of all letters, notices and other written communications received pursuant to Section 2.16 or this Section 2.17. The Company shall have the right to inspect and make copies of all such letters, notices or other written communications at any reasonable time during the Registrar’s normal business hours upon the giving of reasonable written notice to the Registrar.

(f)Transfer of Notes Held by Affiliates. Any certificate (i) evidencing a Note that has been transferred to an Affiliate of the Company within one year after the Issue Date (or if any Initial Notes are issued after the Issue Date pursuant to Section 2.2, the last day of the period of any resale restrictions imposed on such additional Initial Notes issued pursuant to Section 2.2), as evidenced by a notation on the Assignment Form for such transfer or in the representation letter delivered in respect thereof or (ii) evidencing a Note that has been acquired from an Affiliate of the Company (other than by an Affiliate of the Company) in a transaction or

- 20 -

a chain of transactions not involving any public offering, shall, until the later of (x) one year after the last date on which the Company or any Affiliate of the Company was an owner of such Note and (y) if any Initial Notes are issued after the Issue Date pursuant to Section 2.2, the last day of the period of any resale restrictions imposed on such additional Initial Notes issued pursuant to Section 2.2, in each case, bear the Private Placement Legend, unless otherwise agreed by the Company (with written notice thereof to the Trustee).

(g)Notice of Affiliate Purchases. In connection with the purchase or sale of any Note or any beneficial interest therein by the Company or any Affiliate thereof (other than a sale to the Initial Purchasers pursuant to the Purchase Agreement, dated as of January 30, 2013, by and among the Company and Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, UBS Securities LLC, and BMO Capital Markets Corp., as the representatives of the Initial Purchasers), the Company shall file with the Trustee and Registrar a written notice identifying the transaction as such for the purposes hereof.

Section 2.18.Additional Interest Under Registration Rights Agreement. Under certain circumstances, the Company shall be obligated to pay Additional Interest to the Holders, all as set forth in Section 4 of the Registration Rights Agreement.

ARTICLE III.
REDEMPTION

Section 3.1.Optional Redemption by the Company.

(a)Right to Redeem; Notice to Trustee. The Company, at its option, may redeem the Notes in accordance with the provisions of paragraphs 5 and 6 of the Notes. If the Company elects to redeem Notes pursuant to paragraph 5 of the Notes, it shall notify the Trustee in writing of the Redemption Date, the principal amount of Notes to be redeemed and the Redemption Price that would be in effect if such Notes were being redeemed on the date of the notice. The Company shall give the notice to the Trustee provided for in this Section 3.1(a) at least 45 days but not more than 60 days before the Redemption Date (unless a shorter notice shall be satisfactory to the Trustee).

(b)Notice of Redemption. At least 30 days but not more than 60 days before a Redemption Date, the Company shall mail or cause to be mailed a notice of redemption by first-class mail to the Trustee and to each Holder of Notes to be redeemed at such Holder’s address as it appears on the Note register.

The notice shall identify the Notes to be redeemed and shall state:

(i)the Redemption Date;

(ii)the Redemption Price that would be in effect if such Notes were being redeemed on the date of the notice;

(iii)the name and address of the Paying Agent;

- 21 -

(iv)that Notes called for redemption must be presented and surrendered to the Paying Agent to collect the Redemption Price and any accrued interest;

(v)that interest on Notes called for redemption shall cease to accrue on and after the Redemption Date and, unless the Company defaults in making the redemption payment, the only remaining right of the Holder shall be to receive payment of the Redemption Price upon presentation and surrender to the Paying Agent of the Notes;

(vi)if fewer than all the outstanding Notes are to be redeemed, the certificate number (if any) and principal amounts of the particular Notes to be redeemed; and

(vii)the CUSIP number or numbers for the Notes called for redemption.

At the Company’s request, the Trustee shall give the notice of redemption in the Company’s name and at the Company’s expense. In such event, the Company will provide the Trustee with the notice to be delivered to the Holders, which shall contain the information required by clauses (i) through (vii).

(c)Effect of Notice of Redemption. Once notice of redemption is mailed, Notes called for redemption become due and payable on the Redemption Date and at the Redemption Price stated in the notice. Upon presentation and surrender to the Paying Agent, Notes called for redemption shall be paid at the Redemption Price, together with any accrued interest.

(d)Sinking Fund. There shall be no sinking fund provided for the Notes.

ARTICLE IV.
COVENANTS

Section 4.1.Payment of Notes. The Company will promptly pay or cause to be paid the principal of, premium, if any, and interest, if any, on each of the Notes at the places and time and in the manner provided in the Notes and this Indenture. An installment of principal, premium or interest will be considered paid on the date it is due if the Trustee or Paying Agent holds on that date in accordance with this Indenture money designated for and sufficient to pay the installment then due.

The Company will pay or cause to be paid interest on overdue principal at the rate specified in the Notes; it will also pay interest on overdue installments of interest at the same rate, to the extent lawful.

Section 4.2.Reporting. The Company will file with the Trustee within 15 days after filing with the SEC, copies of its annual reports and of the information, documents, and other reports (or copies of such portions of any of the foregoing as the SEC may by rules and regulations prescribe) which the Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. The Company also will comply with the other provisions of TIA Section 314(a).

- 22 -

Delivery of such reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officers’ Certificates).

Section 4.3.Corporate Existence. Subject to Article V, the Company will do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence, rights (charter and statutory) and franchises; provided, however, that the Company will not be required to preserve any such right or franchise if the Board of Directors determines that the preservation of the right or franchise is no longer desirable in the conduct of the business of the Company and that its loss will not be disadvantageous in any material respect to the Holders.

Section 4.4.Compliance Certificate. The Company will deliver to the Trustee within 120 days after the end of each Fiscal Year of the Company an Officers’ Certificate stating that in the course of the performance by the authorized signers of their duties as Officers of the Company they would normally have knowledge of any Default or Event of Default by the Company and whether or not the authorized signers know of any Default or Event of Default that occurred during the Fiscal Year. If they do, the Officers’ Certificate will describe the Default or Event of Default, its status and what action the Company is taking or proposes to take with respect thereto. The Company also will comply with TIA Section 314(a)(4). For the purposes of this provision of this Indenture, compliance is determined without regard to any grace period or requirement of notice under this Indenture.

Section 4.5.Further Instruments and Acts. Upon request of the Trustee, the Company will execute and deliver such further instruments and do such further acts as may be reasonably necessary or proper to carry out more effectively the purpose of this Indenture.

Section 4.6.Limitations on Liens. The Company shall not, nor shall it permit any Restricted Subsidiary to, create, assume, incur or suffer to exist any Lien, upon any of its properties or assets, whether owned on the Issue Date or thereafter acquired, unless (1) if such Lien secures Indebtedness which is pari passu with the Notes, then the Notes are secured by a Lien on the same properties or assets on an equal and ratable basis with the obligation so secured until such time as such obligation is no longer secured by a Lien, (2) if such Lien secures Indebtedness which is subordinated to the Notes, then the Notes are secured by a Lien on the same properties or assets and the Lien securing such Indebtedness is subordinated to the Lien granted to the Holders to the same extent as such Indebtedness is subordinated to the Notes or (3) such Lien is a Permitted Lien (as defined below).

The following Liens constitute “Permitted Liens”:

(a)Liens on property of a Person existing at the time such Person is merged into or consolidated with or otherwise acquired by the Company or any Restricted Subsidiary, provided that such Liens were in existence prior to, and were not created in contemplation of, such merger, consolidation or acquisition and do not extend to any assets other than those of the Person merged into or consolidated with the Company or a Restricted Subsidiary;

- 23 -

(b)Liens on property existing at the time of acquisition thereof by the Company or any Restricted Subsidiary; provided that such Liens were in existence prior to, and were not created in contemplation of, such acquisition and do not extend to any assets other than the property acquired;

(c)Liens imposed by law such as carriers’, warehouseman’s or mechanics’ Liens, and other Liens to secure the performance of statutory obligations, surety or appeal bonds, performance bonds or other obligations of a like nature incurred in the ordinary course of business;

(d)Liens incurred in connection with pollution control, industrial revenue, water, sewage or any similar bonds;

(e)Liens securing Indebtedness representing, or incurred to finance, the cost of acquiring, constructing or improving any assets, provided that the principal amount of such Indebtedness does not exceed 100% of such cost, including construction charges;

(f)Liens securing Indebtedness (A) between a Restricted Subsidiary and the Company, or (B) between Restricted Subsidiaries;

(g)Liens incurred in the ordinary course of business to secure performance of obligations with respect to statutory or regulatory requirements, performance or return-of-money bonds, surety bonds or other obligations of a like nature, in each case which are not incurred in connection with the borrowing of money, the obtaining of advances or credit or the payment of the deferred purchase price of property and which do not in the aggregate impair in any material respect the use of property in the operation of the Company’s business taken as a whole;

(h)pledges or deposits under workmen’s compensation laws, unemployment insurance laws or similar legislation, or good faith deposits in connection with bids, tenders, contracts (other than for the payment of indebtedness) or leases to which the Company or any Restricted Subsidiary is a party, or deposits to secure public or statutory obligations of the Company or of any Restricted Subsidiary or deposits for the payment of rent, in each case incurred in the ordinary course of business;

(i)Liens granted to any bank or other institution on the payments to be made to such institution by the Company or any Subsidiary pursuant to any interest rate swap or similar agreement or foreign currency hedge, exchange or similar agreement designed to provide protection against fluctuations in interest rates and currency exchange rates, respectively, provided that such agreements are entered into in, or are incidental to, the ordinary course of business;

(j)Liens arising solely by virtue of any statutory or common law provision relating to banker’s Liens, rights of set off or similar rights and remedies;

(k)Liens arising from the Uniform Commercial Code financing statements regarding leases;

- 24 -

(l)Liens securing indebtedness incurred to finance the acquisition, construction, improvement, development or expansion of a property which is given within 180 days of the acquisition, construction, improvement, development or expansion of such property and which is limited to such property;

(m)Liens incurred in connection with Non-Recourse Indebtedness;

(n)Liens existing on the Issue Date;

(o)Liens for taxes, assessments or governmental charges or claims that are not yet delinquent or that are being contested in good faith by appropriate proceedings promptly instituted and diligently concluded; provided that any reserve or other appropriate provision as shall be required in conformity with GAAP shall have been made therefor;

(p)Liens securing refinancing Indebtedness; provided that any such Lien does not extend to or cover any property or assets other than the property or assets securing Indebtedness so refunded, refinanced or extended;

(q)easements, rights-of-way and other similar encumbrances incurred in the ordinary course of business and encumbrances consisting of zoning restrictions, licenses, restrictions on the use of property or minor imperfections in title thereto which, in the aggregate, are not material in amount, and which do not in any case materially detract from the Company’s properties subject thereto; and

(r)any extensions, substitutions, modifications, replacements or renewals of the Permitted Liens described above.

Notwithstanding the foregoing, the Company may, and may permit any Restricted Subsidiary to, create, assume, incur or suffer to exist any Lien upon any of its properties or assets that is not a Permitted Lien without equally and ratably securing the Notes if, at the time the Indebtedness secured by the Lien is incurred, the aggregate amount of all Indebtedness then outstanding secured by such Lien and all other Liens, together with the aggregate net sale proceeds from all Sale-Leaseback Transactions which are not Permitted Sale-Leaseback Transactions, does not exceed 20% of the Total Consolidated Stockholders’ Equity of the Company; provided that Indebtedness secured by Permitted Liens shall not be included in the amount of such secured Indebtedness.

Section 4.7.Sale-Leaseback Transactions. The Company shall not, and shall not permit any Restricted Subsidiary to, after the date hereof, enter into any Sale-Leaseback Transaction other than Permitted Sale-Leaseback Transactions (as defined below). The following Sale-Leaseback Transactions constitute “Permitted Sale-Leaseback Transactions”:

(a)a Sale-Leaseback Transaction involving the leasing by the Company or any Restricted Subsidiary of model homes in the Company’s (including its Subsidiaries’) communities;

(b)a Sale-Leaseback Transaction relating to a property entered into within 180 days after the later of the date of acquisition of such property by the Company or a

- 25 -

Restricted Subsidiary or the date of the completion of construction or commencement of full operations on such property, whichever is later;

(c)a Sale-Leaseback Transaction where the Company, within 365 days after such Sale-Leaseback Transaction, applies or causes to be applied to the retirement of any Funded Debt of the Company or any Restricted Subsidiary (other than Funded Debt which by its terms or the terms of the instrument by which it was issued is subordinate in right of payment to the Notes) proceeds of the sale of such property, but only to the extent of the amount of proceeds so applied;

(d)a Sale-Leaseback Transaction where the Company or any Restricted Subsidiary would, on the effective date of such sale or transfer, be entitled, pursuant to this Indenture, to issue, assume or guarantee Indebtedness secured by a Lien upon the relevant property, at least equal in amount to the then present value (discounted at the actual rate of interest of the Sale-Leaseback Transaction) of the obligation for the net rental payments in respect of such Sale-Leaseback Transaction without equally and ratably securing the Notes;

(e)a Sale-Leaseback Transaction between the Company and any Restricted Subsidiary or among Restricted Subsidiaries, provided that the lessor shall be the Company or a wholly-owned Restricted Subsidiary; and

(f)a Sale-Leaseback Transaction which has a lease of no more than three years in length.

Notwithstanding the foregoing, the Company may, and may permit any Restricted Subsidiary to, effect any Sale-Leaseback Transaction involving any real or tangible personal property which is not a Permitted Sale-Leaseback Transaction, provided that at the time of the Sale-Leaseback Transaction the aggregate net sales proceeds from all Sale-Leaseback Transactions which are not Permitted Sale-Leaseback Transactions, together with all Indebtedness secured by Liens other than Permitted Liens, does not exceed 20% of the Total Consolidated Stockholders’ Equity of the Company.

Section 4.8.Furnishing Guarantees. The Company shall cause each existing or future wholly-owned Subsidiary (other than its finance company Subsidiaries and any foreign Subsidiaries) that guarantees any of the Company’s Indebtedness or guarantees the obligations of any Subsidiary as a guarantor of the Company’s Indebtedness to become a Guarantor by causing such Subsidiary, as promptly as practicable, but in any event not later than the date on which such Subsidiary becomes a guarantor of any other Indebtedness of the Company or any Subsidiary, to execute and deliver to the Trustee a Guarantee in substantially the form of Exhibit F hereto and the Company shall furnish to the Trustee an Officers’ Certificate stating that all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with, and an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied with.

- 26 -

Section 4.9.Change of Control.

(a)If a Change of Control Triggering Event occurs, unless the Company has exercised its option to redeem the Notes by notifying the Holders to that effect as described in Section 3.1 above, the Company shall make an offer (a “Change of Control Offer”) to each Holder of Notes to repurchase all or any part (equal to one thousand U.S. dollars ($1,000) or integral multiples of $1,000 in excess thereof) of that Holder’s Notes on the terms set forth in this Section 4.9. In a Change of Control Offer, the Company shall offer payment in cash equal to 101% of the aggregate principal amount of the Notes repurchased, plus accrued and unpaid interest, if any, on the Notes repurchased to the date of repurchase (a “Change of Control Payment”). Within 30 days following any Change of Control Triggering Event or, at the Company’s option, prior to any Change of Control, but after public announcement of the transaction that constitutes or may constitute the Change of Control, the Company shall mail a notice to Holders, describing the transaction that constitutes or may constitute the Change of Control Triggering Event and offering to repurchase the Notes on the date specified in the notice, which date will be no earlier than 30 days and no later than 60 days from the date that notice is mailed, other than as may be required by law (a “Change of Control Payment Date”). The notice shall, if mailed prior to the date of consummation of the Change of Control, state that the Change of Control Offer is conditioned on the Change of Control Triggering Event occurring on or prior to the applicable Change of Control Payment Date.

(b)On each Change of Control Payment Date, the Company shall, to the extent lawful:

(i)accept for payment all Notes or portions of Notes properly tendered pursuant to the Change of Control Offer;

(ii)deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Notes or portions of Notes properly tendered; and

(iii)deliver or cause to be delivered to the Trustee the Notes properly accepted together with an Officers’ Certificate stating the aggregate principal amount of Notes or portions of Notes being repurchased and that all conditions precedent provided for herein to the Change of Control Offer and to the repurchase by the Company of Notes pursuant to the Change of Control Offer have been complied with.

(c)The Company shall not be required to make a Change of Control Offer upon the occurrence of a Change of Control Triggering Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the Company and the third party repurchases all Notes properly tendered and not withdrawn under its offer.

The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase of the Notes as a result of a

- 27 -

Change of Control Triggering Event. To the extent that the provisions of any such securities laws or regulations conflict with the Change of Control Offer provisions herein, the Company will comply with those securities laws and regulations and shall not be deemed to have breached its obligations under the Change of Control Offer provisions herein by virtue of any such conflict.

(d)As used herein:

“Change of Control” means the occurrence of any of the following: (1) the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the Company’s assets and the assets of its Subsidiaries, taken as a whole, to any person, other than the Company or one of its Subsidiaries; (2) the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any person becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the Company’s outstanding Voting Stock or other Voting Stock into which the Company’s Voting Stock is reclassified, consolidated, exchanged or changed, measured by voting power rather than number of shares; (3) the Company consolidates with, or merges with or into, any person, or any person consolidates with, or merges with or into, the Company, in any such event pursuant to a transaction in which any of the Company’s outstanding Voting Stock or the Voting Stock of such other person is converted into or exchanged for cash, securities or other property, other than any such transaction where the shares of the Company’s Voting Stock outstanding immediately prior to such transaction constitute, or are converted into or exchanged for, a majority of the Voting Stock of the surviving person or any direct or indirect parent company of the surviving person immediately after giving effect to such transaction; (4) the first day on which a majority of the members of the Board of Directors are not Continuing Directors; or (5) the adoption of a plan relating to the Company’s liquidation or dissolution.

Notwithstanding the foregoing, a transaction (or series of related transactions) will not be deemed to involve a Change of Control under clause (2) above if, either:

(i)(A) the Company becomes a direct or indirect wholly-owned Subsidiary of a holding company and (B)(1) the direct or indirect holders of the Voting Stock of such holding company immediately following that transaction are substantially the same as the holders of the Company’s Voting Stock immediately prior to that transaction or (2) the shares of the Company’s Voting Stock outstanding immediately prior to such transaction are converted into or exchanged for, a majority of the Voting Stock of such holding company immediately after giving effect to such transaction; or

(ii)(A) Stuart Miller, together with members of his immediate family, directly or indirectly, becomes the beneficial owner of more than 50%, but less than 66

The term “person,” as used in this definition of Change of Control, has the meaning given thereto in Section 13(d)(3) of the Exchange Act.

- 28 -

“Change of Control Triggering Event” means the occurrence of both a Change of Control and a Rating Event.

“Continuing Directors” means, as of any date of determination, any member of the Board of Directors who (1) was a member of the Board of Directors on the Issue Date or (2) was nominated for election, elected or appointed to the Board of Directors with the approval of a majority of the Continuing Directors who were members of the Board of Directors at the time of the nomination, election or appointment (either by a specific vote or by approval of the Company’s proxy statement in which that member was named as a nominee for election as a director, without objection to the nomination).

“Fitch” means Fitch Inc. and its successors.

“Investment Grade Rating” means a rating equal to or higher than Baa3 (or the equivalent) by Moody’s, BBB- (or the equivalent) by S&P and BBB- (or the equivalent) by Fitch, and the equivalent investment grade credit rating from any replacement rating agency or rating agencies selected by the Company.

“Moody’s” means Moody’s Investors Service, Inc. and its successors.

“Rating Agencies” means (1) each of Moody’s, S&P and Fitch; and (2) if any of Moody’s, S&P or Fitch ceases to rate the Notes or fails to make a rating of the Notes publicly available for reasons beyond the Company’s control, a “nationally recognized statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act selected by the Company (as certified by a resolution of the Board of Directors) as a replacement agency for Moody’s, S&P or Fitch, or all of them, as the case may be.

“Rating Event” means the rating on the Notes is lowered by at least two of the three Rating Agencies and the Notes are rated below an Investment Grade Rating by at least two of the three Rating Agencies, (and, if there is a split among the three Rating Agencies, by the two Rating Agencies with the lowest ratings) in any case on any day during the period (which period will be extended so long as the rating of the Notes is under publicly announced consideration for a possible downgrade by any of the Rating Agencies) commencing 60 days prior to the earlier of (1) the first public notice of the occurrence of a Change of Control or (2) the first public notice of the Company’s intention to effect a Change of Control and ending 60 days following consummation of such Change of Control.

“S&P” means Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc., and its successors.

“Voting Stock” means, with respect to any specified “person” (as that term is used in Section 13(d)(3) of the Exchange Act) as of any date, the capital stock of that person that is at the time entitled to vote generally in the election of the board of directors of that person.

- 29 -

ARTICLE V.
SUCCESSOR CORPORATION

Section 5.1.Company May Consolidate, etc., Only on Certain Terms. The Company will not consolidate with or merge into any other corporation or convey, transfer or lease its properties and assets substantially as an entirety to any Person, unless:

(1)the corporation formed by the consolidation or into which the Company is merged or the Person which acquires by conveyance or transfer, or which leases, the properties and assets of the Company substantially as an entirety will be a corporation organized and existing under the laws of the United States of America, a State of the United States of America or the District of Columbia and expressly assumes, by one or more supplemental indentures, executed and delivered to the Trustee, in form satisfactory to the Trustee, the due and punctual payment of the principal of, premium, if any, and interest, if any, on all the Notes and the performance of every covenant of this Indenture to be performed or observed by the Company;

(2)immediately after giving effect to the transaction, no Default or Event of Default will have occurred and be continuing; and

(3)the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that the consolidation, merger, conveyance, transfer or lease and the supplemental indenture (or the supplemental indentures together) comply with this Article and that all the conditions precedent relating to the transaction set forth in this Section have been fulfilled.

Section 5.2.Successor Corporation Substituted. Upon any event described in Section 5.1, the successor corporation will succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture, and, except in connection with a lease transaction, the predecessor corporation will be relieved of all obligations and covenants under this Indenture.

ARTICLE VI.
DEFAULTS AND REMEDIES

Section 6.1.Events of Default.

An “Event of Default” occurs if:

(1)there is a default by the Company in the payment when due of interest on the Notes, which default continues for a period of 30 days;

(2)there is a default by the Company in the payment when due of the principal or Redemption Price or Repurchase Price due with respect to the Notes;

- 30 -

(3)there is a default by the Company or any Restricted Subsidiary with respect to its obligation to pay Indebtedness for money borrowed by the Company or a Restricted Subsidiary (other than any Non-Recourse Indebtedness), which default shall have resulted in the acceleration of, or be a failure to pay at final maturity, Indebtedness aggregating more than $50 million;

(4)there is a failure to perform any other covenant or warranty of the Company herein, which continues for 30 days after written notice;

(5)final judgments or orders are rendered against the Company or any Restricted Subsidiary which require the payment by the Company or any Restricted Subsidiary of an amount (to the extent not covered by insurance) in excess of $50 million and such judgments or orders remain unstayed or unsatisfied for more than 60 days and are not being contested in good faith by appropriate proceedings;

(6)the Company or any Significant Subsidiary (or group of Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary), pursuant to any Bankruptcy Law applicable to the Company or such Significant Subsidiary (or group of Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary): (A) commences a voluntary case; (B) consents to the entry of an order for relief against it or them in an involuntary case against it or them; (C) consents to the appointment of a Custodian of it or them or for any substantial part of its or their property; or (D) makes a general assignment for the benefit of its or their creditors; or

(7)a court of competent jurisdiction enters an order or decree under any applicable Bankruptcy Law: (A) for relief in an involuntary case against the Company or any Significant Subsidiary (or group of Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary); (B) appointing a Custodian of the Company or any Significant Subsidiary (or group of Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary) or for any substantial part of its or their respective property; or (C) ordering the winding up or liquidation of the Company or any Significant Subsidiary (or group of Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary); and the order or decree remains unstayed and in effect for 90 days.

Each of the occurrences described in clauses (1) through (7) of this Section 6.1 will constitute an Event of Default whatever the reason for the occurrence and whether it is voluntary or involuntary or is effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body.

The term “Bankruptcy Law” means Title 11 of the United States Code or any similar United States Federal or State law for the relief of debtors. The term “Custodian” means any receiver, trustee, assignee, liquidator, custodian or similar official under any Bankruptcy Law.

A Default under clause (4) of this Section 6.1 is not an Event of Default until the Holders of at least 25% in principal amount of the then outstanding Notes with regard to which the Company has failed to comply with a covenant or agreement notify the Company and the

- 31 -

Trustee, of the Default and the Company does not cure the Default within 30 days after the giving of the notice. The notice must specify the Default, demand that it be remedied and state that the notice is a “Notice of Default.”

The Company will deliver to the Trustee, within 20 days after it occurs, written notice in the form of an Officers’ Certificate of any event of which the Company is aware which with the giving of notice and the lapse of time would become an Event of Default under clause (4), its status and what action the Company is taking or proposes to take with respect to it.

Section 6.2.Acceleration of Maturity; Rescission and Annulment. If an Event of Default occurs and is continuing, unless the principal of the Notes has already become due and payable, the Trustee by notice to the Company, or the Holders of not less than 25% in aggregate principal amount of the Notes then outstanding by notice to the Company and the Trustee, may declare the outstanding principal of the Notes and any accrued and unpaid interest through the date of such declaration on all of the Notes to be immediately due and payable. Upon such a declaration, such outstanding principal amount and accrued and unpaid interest, if any, shall be due and payable immediately. If an Event of Default specified in Section 6.1(6) or (7) occurs and is continuing, the outstanding principal amount of the Notes shall automatically become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holders. The Holders of a majority in aggregate principal amount of the Notes then outstanding, on behalf of the Holders of all of the Notes, by notice to the Company and the Trustee (and without notice to any other Holder), may rescind any acceleration and its consequences if the rescission would not conflict with any judgment or decree and if all existing Events of Default have been cured or waived except nonpayment of the outstanding principal amount of any of the Notes that has become due solely as a result of acceleration and if all amounts due to the Trustee under Section 7.7 have been paid. No such rescission shall affect any subsequent Default or Event of Default or impair any right consequent thereto.

In case the Trustee shall have proceeded to enforce any right under this Indenture and such proceedings shall have been discontinued or abandoned because of such waiver or rescission and annulment or for any other reason or shall have been determined adversely to the Trustee, then and in every such case the Company, the Holders of Notes, and the Trustee shall be restored respectively to their several positions and rights hereunder and all rights, remedies and powers of the Company, the Holders of Notes, and the Trustee shall continue as though no such proceeding had been taken.

The Trustee shall, within 90 days after a Trust Officer has actual knowledge of the occurrence of a Default or any Event of Default, mail to all Holders, as the names and addresses of such Holders appear upon the Note register, notice of all Defaults or Events of Default known to such Trust Officer, unless such Default or Event of Default is cured or waived before the giving of such notice and provided that, except in the case of default in the payment of the principal, interest, Redemption Price or Repurchase Price, as the case may be, on any of the Notes, the Trustee shall be protected in withholding such notice if and so long as a trust committee of directors and/or officers of the Trustee in good faith determines that the withholding of such notice is in the interest of the Holders.

- 32 -

The Holders of a majority in principal amount of the Notes then outstanding shall have the right to direct the time, method and place of conducting any proceedings for any remedy available to the Trustee, subject to the limitations specified herein.

Section 6.3.Other Remedies. If an Event of Default as to the Notes occurs and is continuing, the Trustee may pursue any available remedy to collect the payment of principal of, premium, if any, and interest, if any, on the Notes or to enforce the performance of any provision under this Indenture.

The Trustee may maintain a proceeding even if it does not possess any of the Notes or does not produce any of them in the proceeding. A delay or omission by the Trustee or any Securityholder in exercising any right or remedy accruing upon an Event of Default will not impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default. No remedy is exclusive of any other remedy. All available remedies are cumulative.

Section 6.4.Waiver of Existing Defaults. The Holders of a majority in aggregate principal amount of the Notes then outstanding, on behalf of the Holders of all the Notes, by notice to the Trustee may consent to the waiver of any past Default with regard to the Notes and its consequences except (i) a default in the payment of interest or premium, if any, on, or the principal of, Notes, (ii) a failure to redeem or repurchase any Notes as required under this Indenture or (iii) a default in respect of a covenant or a provision that under Section 9.2 cannot be modified or amended without the consent of the Holders of all Notes then outstanding. The defaults described in clauses (i), (ii) and (iii) in the previous sentence may be waived with the consent of the Holders of all Notes then outstanding. When a Default or Event of Default is waived, it is deemed cured and not continuing, but no waiver will extend to any subsequent or other Default or impair any consequent right. Without limiting the provisions of Section 7.7, the Trustee shall be compensated by the Company for all costs and expenses incurred by it in connection with any action taken by it pursuant to this Section 6.4.

Section 6.5.Control by Majority. The Holders of a majority in principal amount of the Notes then outstanding may direct the time, method and place of conducting any proceeding for any remedy available to the Trustee with regard to the Notes or of exercising any trust or power conferred on the Trustee with regard to the Notes. However, the Trustee may refuse to follow any direction that conflicts with law or this Indenture or, subject to Section 7.1, that the Trustee determines is unduly prejudicial to the rights of other Holders or that would involve the Trustee in personal liability; provided, however, that the Trustee may take any other action deemed proper by the Trustee that is not inconsistent with such direction. Prior to taking any action as a result of a direction given under this Section, the Trustee will be entitled to indemnification satisfactory to it in its sole discretion against all losses and expenses caused by taking or not taking that action.

Section 6.6.Payments of Notes on Default; Suit Therefor. The Company covenants that upon the occurrence of an Event of Default described in Section 6.1(1) or (2), then, upon demand of the Trustee, the Company will pay to the Trustee, for the benefit of the Holders, the whole amount that will then have become due and payable on all such Notes for principal, premium, if any, and interest, with interest on the overdue principal and premium, if any, and (to the extent that payment of such interest is enforceable under applicable law) on the

- 33 -

overdue installments of interest at the rate borne by the Notes, plus one percent; and, in addition, such further amount as will be sufficient to cover the costs and expenses of collection, including reasonable compensation to the Trustee, its agents, attorneys and counsel, and any expenses or liabilities incurred by the Trustee hereunder other than through its negligence or bad faith. Until such demand by the Trustee, the Company may pay the principal of and premium, if any, and interest on the Notes to the registered Holders, whether or not the Notes are overdue.

Section 6.7.Limitation on Suits. A Holder may not pursue any remedy with respect to this Indenture unless:

(1) the Holder gives to the Trustee written notice stating that an Event of Default is continuing;

(2) the Holders of at least 25% in principal amount of the Notes then outstanding make a written request to the Trustee to pursue the remedy;

(3) such Holder or Holders offer to the Trustee indemnity or security reasonably satisfactory to the Trustee against any cost, loss, liability or expense;

(4) the Trustee does not comply with the request within 60 days after receipt of the request and the offer of security or indemnity, and the Event of Default has not been waived; and

(5) the Trustee has received no inconsistent direction from the Holders of a majority in principal amount of the Notes then outstanding during such 60-day period.

A Holder may not use this Indenture to prejudice the rights of another Holder or to obtain a preference or priority over another Holder.

Section 6.8.Collection Suit by Trustee. If an Event of Default in payment of principal, premium, if any, or interest, if any, specified in clause (1) or (2) of Section 6.1 occurs and is continuing, the Trustee may recover judgment in its own name and as trustee of an express trust against the Company for the whole amount of principal, premium, if any, and interest remaining unpaid (together with interest on that unpaid interest to the extent lawful) and the amounts provided for in Section 7.7.

Section 6.9.Trustee May File Proofs of Claim. The Trustee may file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Trustee and the Holders allowed in any judicial proceedings relative to the Company, its creditors or its property and, unless prohibited by law or applicable regulations, may vote on behalf of the Holders in any election of a trustee in bankruptcy or other Person performing similar functions, and any Custodian in any such judicial proceeding is hereby authorized by each Holder to make payments to the Trustee and, if the Trustee consents to the making of such payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and its counsel, and any other amounts due the Trustee under Section 7.7.

- 34 -

Section 6.10.Restoration of Positions. If a judicial proceeding by the Trustee or a Holder to enforce any right or remedy under this Indenture is dismissed or decided favorably to the Company, except as otherwise provided in the judicial proceeding, the Company, the Trustee and the Holders will be restored to the positions they would have been in if the judicial proceeding had not been instituted.

Section 6.11.Priorities. If the Trustee collects any money pursuant to this Article VI with respect to the Notes, it will pay out the money or property in the following order:

FIRST: to the Trustee for amounts due under Section 7.7;

SECOND: to the Holders for amounts due and unpaid on the Notes for principal, premium and interest, ratably, without preference or priority of any kind, according to the amounts due and payable on the Notes for principal, premium and interest, respectively; and

THIRD: to the Company.

The Trustee may fix a record date and payment date for any payment to the Holders pursuant to this Section. At least 15 days before the record date, the Company will mail to each Holder and the Trustee a notice that states the record date, the payment date and the amount to be paid.

Section 6.12.Undertaking for Costs. In any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken or omitted by it as Trustee, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant. This Section 6.12 does not apply to a suit by the Trustee, a suit by a Holder pursuant to Section 6.7, or a suit by Holders of in aggregate more than 10% in principal amount of the Notes then outstanding, or to any suit instituted by any Holder for the enforcement of the payment of the principal of, premium, if any, or interest on any Note held by that Holder on or after the due date provided in the Note.

Section 6.13.Stay, Extension or Usury Laws. The Company agrees (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever claim, and will resist any and all efforts to be compelled to take the benefit or advantage of, any stay or extension law or any usury or other law, wherever enacted, now or at any subsequent time in force, which would prohibit or forgive the Company from paying all or any portion of the principal of, premium, if any, and/or interest on any of the Notes as contemplated in this Indenture, or which may affect the covenants or performance of this Indenture, and the Company (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law and agrees that it will not hinder, delay or impede the execution of any power granted to the Trustee in this Indenture, but (to the extent that it may lawfully do so) will suffer and permit the execution of any such power as though no such law had been enacted.

- 35 -

Section 6.14.Liability of Stockholders, Officers, Directors and Incorporators. No director, officer, employee, incorporator, stockholder or partner, as such, past, present or future, of the Company, any of its successor corporations or any Subsidiary of the foregoing will have any personal liability in respect of the Company’s obligations under this Indenture or any Notes by reason of his or its status as such; provided, however, that nothing in this Indenture or in the Notes will prevent recourse to and enforcement of the liability of any stockholder or subscriber to Capital Stock in respect of shares of Capital Stock which have not been fully paid up.

ARTICLE VII.
TRUSTEE

Section 7.1.Duties of Trustee.

(a)If an Event of Default has occurred and is continuing, the Trustee will exercise the rights and powers vested in it by this Indenture and use the same degree of care and skill in their exercise as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs.

(b)Except during the continuance of an Event of Default:

(i)the Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture and no implied covenants or obligations will be read into this Indenture against the Trustee; and

(ii)the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed in them, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture in the absence of bad faith on the Trustee’s part; provided, however, that, in the case of any such certificates or opinions whereby any provisions thereof are specifically required to be furnished to the Trustee, then the Trustee will examine the certificates and opinions to determine whether or not they substantially conform to the requirements of this Indenture, but need not confirm or investigate the accuracy of mathematical calculations or other facts stated therein.

(c)The Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act, or its own willful misconduct, except that:

(1)this paragraph does not limit the effect of paragraph (b) of this Section 7.1;

(2)the Trustee will not be liable for any error of judgment made in good faith by a Trust Officer, unless it is proved that the Trustee was negligent in ascertaining the pertinent facts;

- 36 -

(3)the Trustee will not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to Section 6.5; and

(4)the Trustee will not be required to expend or risk its own funds or otherwise incur financial liability in the performance of any of its duties under this Indenture or in the exercise of any of its rights or powers, if it has reasonable grounds to believe repayment of the funds or adequate indemnity against the risk or liability is not reasonably assured to it.

(d)Every provision of this Indenture relating to the conduct or affecting the liability of or affording protection to the Trustee is subject to the provisions of this Section 7.1 and to the provisions of the TIA.

(e)The Trustee may refuse to perform any duty or exercise any right or power unless it receives indemnity satisfactory to it against any loss, liability or expense.

(f)The Trustee will not be liable for interest on any money received by it except as the Trustee may agree with the Company. Money and Government Obligations held in trust by the Trustee need not be segregated from other funds or items except to the extent required by law.

Section 7.2.Rights of Trustee.

(a)The Trustee may conclusively rely on any document believed by it to be genuine and to have been signed or presented by the proper Person. The Trustee need not investigate any fact or matter stated in the document.

(b)Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate and an Opinion of Counsel. The Trustee will not be liable for any action it takes or omits to take in good faith in reliance on such an Officers’ Certificate or Opinion of Counsel.

(c)The Trustee may act through agents or attorneys and will not be responsible for the misconduct or negligence of any agent appointed with due care.

(d)The Trustee will not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within its rights or powers, except conduct which constitutes willful misconduct, negligence or bad faith.

(e)The Trustee may consult with counsel of its selection, and the Trustee will not be liable for any action it takes or omits in reliance on, and in accordance with, the advice of such counsel or any Opinion of Counsel.

(f)The Trustee will not be required to investigate any facts or matters stated in any document, but if it decides to investigate any matters or facts, the Trustee or its agents or attorneys will be entitled to examine the books, records and premises of the Company at the sole cost of the Company and shall incur no liability or additional liability of any kind by reason of such inquiry or investigation.

- 37 -

(g)In no event shall the Trustee be responsible or liable for special, indirect, or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action.

(h)The rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and other Person employed to act hereunder.

(i)The Trustee may request that the Company deliver a certificate setting forth the names of individuals and/or titles of officers authorized at such time to take specified actions pursuant to this Indenture.

(j)The Trustee shall not be deemed to have notice of any Default or Event of Default except any Default or Event of Default occurring pursuant to clause (1) or (2) of Section 6.1 if, at the time of the occurrence of such Default or Event of Default, the Trustee is the Paying Agent, unless a Trust Officer of the Trustee has actual knowledge thereof or unless written notice of any event which is in fact such a default is received by a Trust Officer of the Trustee at the Corporate Trust Office of the Trustee, and such notice references the Securities and this Indenture.

(k)The permissive rights of the Trustee enumerated herein shall not be construed as duties.

(l)Any request or direction of the Company mentioned herein shall be sufficiently evidenced by a Officers’ Certificate and any resolution of the Board of Directors may be sufficiently evidenced by a Board Resolution.

(m)Subject to Section 7.1, the Trustee shall be under no obligation to exercise any of the rights or powers under this Indenture at the request or direction of any of the Holders unless such Holders have offered to the Trustee indemnity or security reasonably satisfactory to it against any loss, liability or expense.

Section 7.3.Individual Rights of Trustee. The Trustee in its individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal with the Company or any of its Affiliates with the same rights it would have if it were not Trustee. Any Paying Agent, Registrar, co-registrar or co-paying agent may do the same with like rights. However, the Trustee must comply with Sections 7.10 and 7.11.

Section 7.4.Trustee’s Disclaimer. The Trustee (i) is not responsible for and makes no representation as to the validity or adequacy of this Indenture, (ii) will not be accountable for the Company’s use of the proceeds from the Notes, and (iii) will not be responsible for any statement of the Company in this Indenture, other than the Trustee’s certificate of authentication, or in any document used in the sale of the Notes, other than statements, if any, provided in writing by the Trustee for use in such a document.

- 38 -

Section 7.5.Notice of Defaults. The Trustee will give to the Holders notice of any Default with regard to the Notes known to the Trustee, within 90 days after it occurs, unless such Default shall have been cured or waived; provided, that, except in the case of a Default in the payment of the principal of, or premium, if any, or interest on any Note, the Trustee will be protected in withholding notice of the Default if and so long as a committee of its Trust Officers in good faith determines that the withholding of the notice is in the interests of the Holders.

Section 7.6.Reports by Trustee. Within 60 days after each November 30 beginning with the November 30 following the date of this Indenture, the Trustee will mail to each Holder, at the name and address which appears on the registration books of the Company, and to each Holder who has, within the two years preceding the mailing, filed that person’s name and address with the Trustee for that purpose and each Holder whose name and address have been furnished to the Trustee pursuant to Section 2.5, a brief report dated as of that November 30 which complies with TIA Section 313(a). The Trustee also will comply with TIA Section 313(b).

A copy of each report will at the time of its mailing to Holders be filed with each stock exchange on which the Notes are listed and also with the SEC. The Company will promptly notify the Trustee when the Notes are listed on, or delisted from, any stock exchange and of any delisting of the Notes.

Section 7.7.Compensation and Indemnity. The Company will pay to the Trustee from time to time reasonable compensation for its services as the Company and the Trustee shall from time to time agree in writing. The Trustee’s compensation will not be limited by any law on compensation of a trustee of an express trust. The Company will reimburse the Trustee upon request for all reasonable out-of-pocket expenses incurred or disbursements and advances made by it, including costs of collection, in addition to the compensation for its services. Those expenses will include the reasonable compensation and expenses, disbursements and advances of the Trustee’s agents, counsel, accountants and experts. The Company will indemnify the Trustee against any and all loss, claim, damage, liability or expense (including reasonable attorneys’ fees) incurred by it in connection with the administration of the trust created by this Indenture and the performance of its duties under this Indenture. The Trustee will notify the Company promptly of any claim for which it may seek indemnity. Failure by the Trustee to so notify the Company will not relieve the Company of its obligations under this Section. The Company will defend the claim and the Trustee may have separate counsel and the Company will pay the fees and expenses of such counsel. The Company need not pay for any settlement made without its consent, which shall not be unreasonably withheld or delayed. The Company need not reimburse any expense or indemnify against any loss, expense or liability incurred by the Trustee to the extent it is due to the Trustee’s own willful misconduct, negligence or bad faith.

To secure the Company’s obligation to make payments to the Trustee under this Section 7.7, the Trustee will have a lien prior to the Notes on all money or property held or collected by the Trustee, other than money or property held in trust to pay principal or interest on the Notes. Those obligations of the Company will survive the satisfaction and discharge of this Indenture.

- 39 -

When the Trustee incurs expenses or renders services after an Event of Default specified in clause (6) or (7) of Section 6.1 occurs, the expenses and the compensation for the services of the Trustee are intended to constitute expenses of administration under any Bankruptcy Law.

For purposes of this Section 7.7, “Trustee” will include any predecessor Trustee, but the willful misconduct, negligence or bad faith of any Trustee will not affect the rights of any other Trustee under this Section 7.7.

The provisions of this Section 7.7 shall survive the termination of this Indenture and the resignation or removal of the Trustee.

Section 7.8.Replacement of Trustee. The Trustee may resign at any time by so notifying the Company. The Holders of a majority in aggregate principal amount of the Notes then outstanding may remove the Trustee by so notifying the Trustee and the Company and may appoint a successor Trustee. The Company may remove the Trustee if:

(1) the Trustee fails to comply with Section 7.10;

(2) the Trustee is adjudged bankrupt or insolvent or an order for relief is entered with respect to the Trustee under any Bankruptcy Law;

(3) a receiver or other public officer takes charge of the Trustee or its property; or

(4) the Trustee becomes incapable of acting.

If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Company will promptly appoint a successor Trustee. Within one year after the successor Trustee takes office, the Holders of a majority in aggregate principal amount of the Notes then outstanding may appoint a successor Trustee to replace the successor Trustee appointed by the Company.

No removal or appointment of a Trustee will be valid if that removal or appointment would conflict with any law applicable to the Company.

A successor Trustee will deliver a written acceptance of its appointment to the retiring Trustee and to the Company. Immediately after that, the retiring Trustee will, subject to the lien provided for in Section 7.7, transfer all property held by it as a Trustee to the successor Trustee, the resignation or removal of the retiring Trustee will become effective, and the successor Trustee will have all the rights, powers and duties of the Trustee under this Indenture. A successor Trustee will mail notice of its succession to each Holder.

If a successor Trustee does not take office within 60 days after the retiring Trustee resigns or is removed, the retiring Trustee (at the expense of the Company), the Company or the Holders of a majority in aggregate principal amount of the Notes then outstanding may petition any court of competent jurisdiction for the appointment of a successor Trustee.

- 40 -

If the Trustee fails to comply with Section 7.10, any Holder may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

Notwithstanding the replacement of the Trustee pursuant to this Section, the Company’s obligations under Section 7.7 will continue for the benefit of the retiring Trustee.

Section 7.9.Successor Trustee by Merger, etc. If the Trustee consolidates with, merges or converts into, or transfers all or substantially all of its corporate trust assets to, another Person, the resulting, surviving or transferee Person will, without any further act, be the successor Trustee.

If at the time a successor by merger, conversion or consolidation to the Trustee succeeds to the trusts created by this Indenture and any of the Notes have been authenticated but not delivered, the successor to the Trustee may adopt the certificate of authentication of the predecessor Trustee, and deliver the Notes which were authenticated by the predecessor Trustee; and if at that time any of the Notes have not been authenticated, the successor to the Trustee may authenticate those Notes either in the name of the predecessor or in its own name as the successor to the Trustee; and in either case the certificates of authentication will have the full force provided in this Indenture for certificates of authentication.

Section 7.10.Eligibility; Disqualification. The Trustee will at all times satisfy the requirements of TIA Section 310(a). The Trustee will at all times have a combined capital and surplus of at least $50 million as set forth in its most recently published annual report of condition, which will be deemed for this paragraph to be its combined capital and surplus. The Trustee will comply with TIA Section 310(b), including the optional provision permitted by the second sentence of TIA Section 310(b)(9).

Section 7.11.Preferential Collection of Claims. The Trustee will comply with TIA Section 311(a), excluding any creditor relationship listed in TIA Section 311(b). A Trustee who has resigned or been removed will be subject to TIA Section 311(a) to the extent indicated.

ARTICLE VIII.
DISCHARGE OF INDENTURE

Section 8.1.Termination of the Company’s Obligations. When (1) the Company shall deliver to the Trustee for cancellation all Notes theretofore authenticated (other than any Notes which have been destroyed, lost or stolen and in lieu of or in substitution for which other Notes shall have been authenticated and delivered) and not theretofore canceled, or (2) all the Notes not theretofore canceled or delivered to the Trustee for cancellation shall have become due and payable, or are by their terms to become due and payable within one year, whether at stated maturity or upon redemption and the Company shall deposit with the Trustee, in trust, monies and/or U.S. Government Obligations sufficient to pay at the Maturity Date or Redemption Date, as applicable, all sums which will become due with regard to all Notes theretofore authenticated (other than any Notes which shall have been mutilated, destroyed, lost

- 41 -

or stolen and in lieu of or in substitution for which other Notes shall have been authenticated and delivered) and not theretofore canceled or delivered to the Trustee for cancellation, including the principal amount and interest accrued to the Maturity Date or Redemption Date, as applicable, and if the Company shall also pay or cause to be paid all other sums payable hereunder by the Company, then this Indenture shall cease to be of further effect with respect to the Notes (except as to (i) remaining rights of registration of transfer, substitution and exchange of Notes, (ii) rights hereunder of Holders to receive payments of the principal amount, including interest due with respect to the Notes and the other rights, duties and obligations of Holders, as beneficiaries hereof with respect to the amounts, if any, so deposited with the Trustee and (iii) the rights, obligations and immunities of the Trustee under this Indenture with respect to the Notes), and the Trustee, on demand of the Company accompanied by an Officers’ Certificate and an Opinion of Counsel as required by Section 8.3 and at the cost and expense of the Company, shall execute proper instruments acknowledging satisfaction of and discharging this Indenture with respect to the Notes; the Company, however, hereby agrees to reimburse the Trustee for any costs or expenses thereafter reasonably and properly incurred by the Trustee, and to compensate the Trustee for any services thereafter reasonably and properly rendered by the Trustee, in connection with this Indenture or the Notes.

Section 8.2.Application of Trust Money. Subject to Section 8.4, the Trustee will hold in trust money or U.S. Government Obligations deposited with it pursuant to Section 8.1. It will apply the deposited money and the money from the U.S. Government Obligations through the Paying Agent and in accordance with this Indenture to the payment of principal of, premium, if any, and interest, if any, on the Notes with regard to which the money or U.S. Government Obligations were deposited.

Section 8.3.Officers’ Certificate; Opinion of Counsel. Upon any application or demand by the Company to the Trustee to take any action under Section 8.1, the Company shall furnish to the Trustee an Officers’ Certificate stating that all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with, and an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied with.

Each such Officers’ Certificate and Opinion of Counsel provided for in this Indenture and delivered to the Trustee with respect to compliance with a condition or covenant pursuant to the previous paragraph shall comply with the provisions of Section 11.5.

Section 8.4.Repayment to the Company. The Trustee and the Paying Agent will promptly pay to the Company upon request any excess money or securities held by them at any time. The Trustee and the Paying Agent will pay to the Company upon request any money held by them for the payment of principal, premium or interest that remains unclaimed for two years. After such payment, all liability of the Trustee and the Paying Agent with respect to that money will cease.

Section 8.5.Reinstatement. If the Trustee or the Paying Agent is unable to apply any money in accordance with Section 8.2 by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the Company’s obligations under this Indenture shall be revived and reinstated with respect to

- 42 -

the Notes as though no deposit had occurred pursuant to Section 8.1 until such time as the Trustee or the Paying Agent is permitted to apply all such money in accordance with Section 8.2; provided, however, that if the Company makes any payment of principal amount or Redemption Price of or interest on any Note following the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Notes to receive such payment from the money held by the Trustee or Paying Agent.

ARTICLE IX.
MODIFICATION OF THE INDENTURE

Section 9.1.Without Consent of Holders. The Company and the Trustee may amend or supplement this Indenture or the Notes without notice to or consent of any Holder:

(1)to cure any ambiguity, defect or inconsistency that does not adversely affect the rights of any Holder;

(2)to make any change that does not adversely affect the rights of any Holder;

(3)to comply with Article 5;

(4)to add to the covenants of the Company further covenants, restrictions or conditions that the Board of Directors and the Trustee shall consider to be for the benefit of the Holders of Notes, and to make the occurrence, or the occurrence and continuance, of a default in any such additional covenants, restrictions or conditions a Default or an Event of Default permitting the enforcement of all or any of the several remedies provided in this Indenture;

(5)to evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Notes; or

(6)to modify, eliminate or add to the provisions of this Indenture to such extent as shall be necessary for this Indenture to comply with the TIA, or under any similar federal statute hereafter enacted.

After an amendment under this Section becomes effective, the Company will mail to the Holders a notice briefly describing the amendment. The failure to give such notice to all Holders, or any defect in a notice, will not impair or affect the validity of an amendment under this Section.

Section 9.2.With Consent of Holders. The Company and the Trustee may amend or supplement this Indenture or the Notes without notice to any Holder but with the written consent of the Holders of a majority in aggregate principal amount of the Notes then outstanding. The Holders of a majority in principal amount of the Notes then outstanding may waive compliance by the Company with any provision of this Indenture or the Notes without notice to any Holder. However, without the consent of the Holder so affected, no amendment, supplement or waiver, including a waiver pursuant to Section 6.4, may:

- 43 -

(1)extend the fixed maturity of any Note or any installment of interest thereon, reduce the principal amount, interest rate, Redemption Price, Repurchase Price or amount due upon acceleration, impair the right of a Holder to institute suit for the payment thereof, change the currency in which the Notes are payable;

(2)reduce the percentage of Notes required to consent to an amendment, supplement or waiver;

(3)release any Guarantor except as provided in Article X hereof; or

(4)make any change in Section 6.2 or Section 6.4 or the second sentence of this Section.

It will not be necessary for the consent of the Holders under this Section to approve the particular form of any proposed amendment, supplement or waiver, but it will be sufficient if the consent approves the substance of the amendment, supplement or waiver.

Section 9.3.Compliance with Trust Indenture Act. Every amendment or supplement to this Indenture or the Notes will comply with the TIA as then in effect.

Section 9.4.Revocation and Effect of Consents. A consent to an amendment, supplement or waiver by a Holder will bind the Holder and every subsequent Holder of a Note or portion of a Note that evidences the same debt as the consenting Holder’s Note, even if notation of the consent is not made on any Note. However, any such Holder or subsequent Holder may revoke the consent as to the Holder’s Note or portion of a Note. For a revocation to be effective, the Trustee must receive notice of the revocation before the date the amendment, supplement or waiver becomes effective. After an amendment, supplement or waiver becomes effective in accordance with its terms, it will bind every Holder of every Note.

Section 9.5.Notation on or Exchange of Notes. If an amendment, supplement or waiver changes the terms of the Notes, the Trustee may require the Holder of a Note to deliver the Holder’s Note to the Trustee, who will place an appropriate notation about the amendment, supplement or waiver on the Note and will return it to the Holder. Alternatively, the Company may, in exchange for the Note, issue, and the Trustee will authenticate, a new Note that reflects the amendment, supplement or waiver.

Section 9.6.Trustee to Sign Amendments, etc. The Trustee will sign any amendment, supplement or waiver authorized pursuant to Article II or this Article IX if the amendment, supplement or waiver does not adversely affect the rights, duties, liabilities or immunities of the Trustee. If it does adversely affect those rights, liabilities or immunities, the Trustee may but need not sign it. The Company may not sign an amendment or supplement until the amendment or supplement is approved by an appropriate Board Resolution.

In signing such amendment the Trustee shall receive indemnity reasonably satisfactory to it and shall receive, and shall be fully protected in relying upon, in addition to the documents required by Section 11.4, an Officers’ Certificate and an Opinion of Counsel each stating that such amendment is authorized or permitted by this Indenture and the TIA.

- 44 -

ARTICLE X.
GUARANTEE OF NOTES

Section 10.1.Unconditional Guarantee. Except as provided in Section 10.2 or Section 10.4, each Guarantor hereby jointly and severally, unconditionally and irrevocably guarantees (such guarantee to be referred to herein as a “Guarantee”) to each Holder of a Note authenticated and delivered by the Trustee and to the Trustee and its successors and assigns, that: (a) all amounts due with respect to the Notes shall be duly and punctually paid in full when due, whether at maturity, by acceleration or otherwise, and interest on the overdue principal and (to the extent permitted by law) interest, if any, on the Notes and all other obligations of the Company or the Guarantors to the Holders or the Trustee hereunder or thereunder and all other obligations shall be promptly paid in full or performed, all in accordance with the terms hereof and thereof; and (b) in case of any extension of time of payment or renewal of any Notes or any of such other obligations, the same shall be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at maturity, by acceleration or otherwise. Failing payment when due of any amount so guaranteed, or failing performance of any other obligation of the Company to the Holders under this Indenture or under the Notes, for whatever reason, each Guarantor shall be obligated to pay, or to perform or cause the performance of, the same immediately. An Event of Default under this Indenture or the Notes shall constitute an event of default under each Guarantee, and shall entitle the Holders of Notes to accelerate the obligations of the Guarantors hereunder in the same manner and to the same extent as the obligations of the Company.

Each of the Guarantors hereby agrees that, subject to Section 10.2 and Section 10.4, its obligations hereunder shall be unconditional, irrespective of the validity, regularity or enforceability of the Notes or this Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with respect to any provisions hereof or thereof, any release of any other Guarantor, the recovery of any judgment against the Company, any action to enforce the same, whether or not a Guarantee is affixed to any particular Note, or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a guarantor. Each of the Guarantors hereby waives the benefit of diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy of the Company, any right to require a proceeding first against the Company, protest, notice and all demands whatsoever and covenants that its Guarantee shall not be discharged except by complete performance of the obligations contained in the Notes, this Indenture and each Guarantee. Each Guarantee is a guarantee of payment and not of collection. Each Guarantor further agrees that, as between it, on the one hand, and the Holders of Notes and the Trustee, on the other hand, (a) subject to this Article X, the maturity of the obligations guaranteed hereby may be accelerated as provided in Article VI hereof for the purposes of each Guarantee, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the obligations guaranteed hereby, and (b) in the event of any acceleration of such obligations as provided in Article VI hereof, such obligations (whether or not due and payable) shall forthwith become due and payable by the Guarantors for the purpose of each Guarantee.

No director, officer, employee, incorporator, stockholder or partner, as such, past, present or future, of any Guarantor, as such, shall have any personal liability under any

- 45 -

Guarantee by reason of his, her or its status as such director, officer, employee, incorporator, stockholder or partner.

Each Guarantor that makes a payment or distribution under its Guarantee shall be entitled to a contribution from each other Guarantor in an amount pro rata, based on the net assets of each Guarantor, determined in accordance with GAAP.

Section 10.2.Limitations on Guarantees; Release or Suspension of Particular Guarantors’ Obligations. The obligations of each Guarantor under its Guarantee will be limited to the maximum amount which, after giving effect to all other contingent and fixed liabilities of such Guarantor and after giving effect to any collections from or payments made by or on behalf of any other Guarantors in respect of the obligations of such other Guarantors under their Guarantees or pursuant to their contribution obligations under this Indenture, will result in the obligations of such Guarantor under its Guarantee not constituting a fraudulent conveyance or fraudulent transfer under federal or state law.

Additionally, if any Guarantor is released from its Guarantee (rather than a suspension of its Guarantee) of the outstanding Indebtedness of the Company or the obligations of any Restricted Subsidiary as a guarantor of the Company’s Indebtedness, such Guarantor shall be automatically released from its obligations as Guarantor, and from and after such date, such Guarantor shall cease to constitute a Guarantor and a Restricted Subsidiary.

The obligations of a Guarantor will be automatically suspended, and such Guarantor shall not constitute a guarantor and shall not have any obligations with regard to the Notes, during any period when the principal amount of the Company’s obligations and any Subsidiary’s obligations as a guarantor of the Company’s obligations (without duplication), in each case other than the Notes and other Indebtedness containing provisions similar to this, that the Guarantor is guaranteeing total less than $75 million.

Section 10.3.Execution and Delivery of Guarantee. To further evidence the Guarantee set forth in Section 10.1, each Guarantor hereby agrees to execute and deliver to the Trustee a Guarantee in substantially the form of Exhibit F hereto. Such Guarantee shall be executed on behalf of each Guarantor by either manual or facsimile signature of an officer or agent of each Guarantor, each of whom, in each case, shall have been duly authorized to so execute by all requisite corporate action. The validity and enforceability of any Guarantee shall not be affected by the fact that it is not affixed to any Note or Notes.

If an officer or agent of a Guarantor whose signature is on this Indenture or a Guarantee no longer holds that office at the time the Trustee authenticates a Note to which such Guarantee relates or at any time thereafter, such Guarantor’s Guarantee of such Note shall be valid nevertheless.

The delivery of any Note by the Trustee, after the authentication thereof hereunder, shall constitute due delivery of any Guarantee set forth in this Indenture on behalf of each Guarantor.

- 46 -

Section 10.4.Release of a Guarantor due to Extraordinary Events. If no Default exists or would exist under this Indenture, upon the sale or disposition of all or substantially all of the assets of a Guarantor, or all of the Capital Stock of a Guarantor (including by consolidation, merger, issuance or otherwise), by the Company or a Subsidiary of the Company, or upon the consolidation or merger of a Guarantor with or into any Person (in each case, other than to the Company or an Affiliate of the Company or a Subsidiary), or if any Guarantor is dissolved or liquidated, such Guarantor and each Subsidiary of such Guarantor that is also a Guarantor, or the Person acquiring such assets (in the event of a sale or other disposition of all or substantially all of the assets of such Guarantor), shall be deemed automatically and unconditionally released and discharged from all of its obligations under this Article X without any further action required on the part of the Trustee or any Holder.

The Trustee shall execute any documents reasonably requested by the Company or a Guarantor in order to evidence the release of such Guarantor from its Obligations under its Guarantee of the Notes under this Article X.

Nothing contained in this Indenture or in any of the Notes shall prevent any consolidation or merger of a Guarantor with or into the Company or another Guarantor or shall prevent any sale or conveyance of the property of a Guarantor as an entirety or substantially as an entirety to the Company or another Guarantor.

Section 10.5.Waiver of Subrogation. Until this Indenture is discharged and all of the Notes are discharged and paid in full, each Guarantor hereby irrevocably waives and agrees not to exercise any claim or other rights which it may now or hereafter acquire against the Company that arise from the existence, payment, performance or enforcement of the Company’s obligations under the Notes or this Indenture and such Guarantor’s obligations under its Guarantee and this Indenture, in any such instance including, without limitation, any right of subrogation, reimbursement, exoneration, contribution, indemnification, and any right to participate in any claim or remedy of the Holders against the Company, whether or not such claim, remedy or right arises in equity, or under contract, statute or common law, including, without limitation, the right to take or receive from the Company, directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security on account of such claim or other rights. If any amount shall be paid to any Guarantor in violation of the preceding sentence and any amounts owing to the Trustee or the Holders of Notes under the Notes, this Indenture, or any other document or instrument delivered under or in connection with such agreements or instruments, shall not have been paid in full, such amount shall have been deemed to have been paid to such Guarantor for the benefit of, and held in trust for the benefit of, the Trustee or the Holders and shall forthwith be paid to the Trustee for the benefit of itself or such Holders to be credited and applied to the obligations in favor of the Trustee or the Holders, as the case may be, whether matured or unmatured, in accordance with the terms of this Indenture. Each Guarantor acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated by this Indenture and that the waiver set forth in this Section 10.5 is knowingly made in contemplation of such benefits.

Section 10.6.No Set-Off. Each payment to be made by a Guarantor hereunder in respect of the Obligations shall be payable in the currency or currencies in which

- 47 -

such Obligations are denominated, and shall be made without set-off, counterclaim, reduction or diminution of any kind or nature.

Section 10.7.Obligations Absolute. The obligations of each Guarantor hereunder are and shall be absolute and unconditional and any monies or amounts expressed to be owing or payable by each Guarantor hereunder which may not be recoverable from such Guarantor on the basis of a Guarantee shall be recoverable from such Guarantor as a primary obligor and principal debtor in respect thereof.

Section 10.8.Obligations Continuing. Except as provided in Section 10.2 or Section 10.4, the obligations of each Guarantor hereunder shall be continuing and shall remain in full force and effect until all the obligations have been paid and satisfied in full. Each Guarantor agrees with the Trustee that it will from time to time deliver to the Trustee suitable acknowledgments of its continued liability hereunder and under any other instrument or instruments in such form as counsel to the Trustee may advise and as will prevent any action brought against it in respect of any default hereunder being barred by any statute of limitations now or hereafter in force and, in the event of the failure of a Guarantor so to do, it hereby irrevocably appoints the Trustee the attorney and agent of such Guarantor to make, execute and deliver such written acknowledgment or acknowledgments or other instruments as may from time to time become necessary or advisable, in the judgment of the Trustee on the advice of counsel, to fully maintain and keep in force the liability of such Guarantor hereunder.

Section 10.9.Obligations Not Reduced. Except as otherwise provided in Sections 10.2 and 10.4, the obligations of each Guarantor hereunder shall not be satisfied, reduced or discharged except solely by the payment of such principal, premium, if any, interest, fees and other monies or amounts as may at any time prior to discharge of this Indenture pursuant to Article VIII be or become owing or payable under or by virtue of or otherwise in connection with the Notes or this Indenture.

Section 10.10.Obligations Reinstated. The Obligations of each Guarantor hereunder shall continue to be effective or shall be reinstated, as the case may be, if at any time any payment which would otherwise have reduced the obligations of any Guarantor hereunder (whether such payment shall have been made by or on behalf of the Company or by or on behalf of a Guarantor) is rescinded or reclaimed from the Trustee or any of the Holders upon the insolvency, bankruptcy, liquidation or reorganization of the Company or any Guarantor or otherwise, all as though such payment had not been made. If demand for, or acceleration of the time for, payment by the Company is stayed upon the insolvency, bankruptcy, liquidation or reorganization of the Company, all such Indebtedness otherwise subject to demand for payment or acceleration shall nonetheless be payable by each Guarantor as provided herein.

Section 10.11.Obligations Not Affected. Except as otherwise provided in Sections 10.2 and 10.4, the Obligations of each Guarantor hereunder shall not be affected, impaired or diminished in any way by any act, omission, matter or thing whatsoever, occurring before, upon or after any demand for payment hereunder (and whether or not known or consented to by any Guarantor or any of the Holders) which, but for this provision, might constitute a whole or partial defense to a claim against any Guarantor hereunder or might operate to release or otherwise exonerate any Guarantor from any of its obligations hereunder or

- 48 -

otherwise affect such obligations, whether occasioned by default of any of the Holders or otherwise, including, without limitation:

(a)any limitation of status or power, disability, incapacity or other circumstance relating to the Company or any other Person, including any insolvency, bankruptcy, liquidation, reorganization, readjustment, composition, dissolution, winding up or other proceeding involving or affecting the Company or any other Person;

(b)any irregularity, defect, unenforceability or invalidity in respect of any indebtedness or other obligation of the Company or any other Person under this Indenture, the Notes or any other document or instrument;

(c)any failure of the Company, whether or not without fault on its part, to perform or comply with any of the provisions of this Indenture or the Notes, or to give notice thereof to a Guarantor;

(d)the taking or enforcing or exercising or the refusal or neglect to take or enforce or exercise any right or remedy from or against the Company or any other Person or their respective assets or the release or discharge of any such right or remedy;

(e)the granting of time, renewals, extensions, compromises, concessions, waivers, releases, discharges and other indulgences to the Company or any other Person;

(f)any change in the time, manner or place of payment of, or in any other term of, any of the Notes, or any other amendment, variation, supplement, replacement or waiver of, or any consent to departure from, any of the Notes or this Indenture, including, without limitation, any increase or decrease in any amount due with respect to any of the Notes;

(g)any change in the ownership, control, name, objects, businesses, assets, capital structure or constitution of the Company or a Guarantor;

(h)any merger or amalgamation of the Company or a Guarantor with any Person or Persons;

(i)the occurrence of any change in the laws, rules, regulations or ordinances of any jurisdiction by any present or future action of any governmental authority or court amending, varying, reducing or otherwise affecting, or purporting to amend, vary, reduce or otherwise affect, any of the Obligations or the obligations of a Guarantor under its Guarantee; and

(j)any other circumstance (other than by complete, irrevocable payment) that might otherwise constitute a legal or equitable discharge or defense of the Company under this Indenture or the Notes or of a Guarantor in respect of its Guarantee hereunder.

Section 10.12.Waiver. Without in any way limiting the provisions of Section 10.1 hereof, each Guarantor hereby waives notice of acceptance hereof, notice of any liability of any Guarantor hereunder, notice or proof of reliance by the Holders upon the obligations of any Guarantor hereunder, and diligence, presentment, demand for payment on the

- 49 -

Company, protest, notice of dishonor or non-payment of any of the Obligations, or other notice or formalities to the Company or any Guarantor of any kind whatsoever.

Section 10.13.No Obligation to Take Action Against the Company. Neither the Trustee nor any other Person shall have any obligation to enforce or exhaust any rights or remedies or to take any other steps under any security for the Obligations or against the Company or any other Person or any Property of the Company or any other Person before the Trustee is entitled to demand payment and performance by any or all Guarantors of their liabilities and Obligations under their Guarantees or under this Indenture.

Section 10.14.Dealing with the Company and Others. The Holders, without releasing, discharging, limiting or otherwise affecting in whole or in part the obligations and liabilities of any Guarantor hereunder and without the consent of or notice to any Guarantor, may:

(a)grant time, renewals, extensions, compromises, concessions, waivers, releases, discharges and other indulgences to the Company or any other Person;

(b)take or abstain from taking security or collateral from the Company or from perfecting security or collateral of the Company;

(c)release, discharge, compromise, realize, enforce or otherwise deal with or do any act or thing in respect of (with or without consideration) any and all collateral, mortgages or other security given by the Company or any third party with respect to the obligations or matters contemplated by this Indenture or the Notes;

(d)accept compromises or arrangements from the Company;

(e)apply all monies at any time received from the Company or from any security upon such part of the Obligations as the Holders may see fit or change any such application in whole or in part from time to time as the Holders may see fit; and

(f)otherwise deal with, or waive or modify their right to deal with, the Company and all other Persons and any security as the Holders or the Trustee may see fit.

Section 10.15.Default and Enforcement. If any Guarantor fails to pay in accordance with Section 10.1 hereof, the Trustee may proceed in its name as trustee hereunder in the enforcement of the Guarantee of any such Guarantor and such Guarantor’s obligations thereunder and hereunder by any remedy provided by law, whether by legal proceedings or otherwise, and to recover from such Guarantor the Obligations.

Section 10.16.Amendment, etc. No amendment, modification or waiver of any provision of this Indenture relating to any Guarantor or consent to any departure by any Guarantor or any other Person from any such provision will in any event be effective or affect the Obligation of any other Guarantor unless it is signed by such Guarantor and the Trustee.

- 50 -

Section 10.17.Acknowledgment. Each Guarantor hereby acknowledges communication of the terms of this Indenture and the Notes and consents to and approves of the same.

Section 10.18.Costs and Expenses. Each Guarantor shall pay on demand by the Trustee any and all costs, fees and expenses (including, without limitation, legal fees) incurred by the Trustee, its agents, advisors and counsel or any of the Holders in enforcing any of their rights under any Guarantee.

Section 10.19.No Merger or Waiver; Cumulative Remedies. No Guarantee shall operate by way of merger of any of the obligations of a Guarantor under any other agreement, including, without limitation, this Indenture. No failure to exercise and no delay in exercising, on the part of the Trustee or the Holders, any right, remedy, power or privilege hereunder or under the Notes or the Guarantees, shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder or under this Indenture or the Notes or the Guarantees preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges in the Guarantee and under this Indenture, the Notes and any other document or instrument between a Guarantor and/or the Company and the Trustee are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

Section 10.20.Survival of Obligations. Without prejudice to the survival of any of the other obligations of each Guarantor hereunder, the obligations of each Guarantor under Section 10.1 shall survive until the indefeasible payment in full of the Obligations and shall be enforceable against such Guarantor without regard to and without giving effect to any defense, right of offset or counterclaim available to or which may be asserted by the Company or any Guarantor.

Section 10.21.Guarantee in Addition to Other Obligations. The obligations of each Guarantor under its Guarantee and this Indenture are in addition to and not in substitution for any other obligations to the Trustee or to any of the Holders in relation to this Indenture or the Notes and any guarantees or security at any time held by or for the benefit of any of them.

Section 10.22.Severability. Any provision of this Article X which is prohibited or unenforceable in any jurisdiction shall not invalidate the remaining provisions and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction unless its removal would substantially defeat the basic intent, spirit and purpose of this Indenture and this Article X.

Section 10.23.Successors and Assigns. Each Guarantee shall be binding upon and inure to the benefit of each Guarantor and the Trustee and the Holders and their respective successors and permitted assigns, except that no Guarantor may assign any of its Obligations hereunder or thereunder.

- 51 -

Section 10.24.Acknowledgement under TIA. Each Guarantor acknowledges that, by virtue of its Guarantee, it is becoming an “obligor” on indenture securities under the TIA.

ARTICLE XI.
MISCELLANEOUS

Section 11.1.TIA Controls.

If any provision of this Indenture limits, qualifies, or conflicts with another provision which is required to be included in this Indenture by the TIA, the required provision shall control; provided, however, that this Section 11.1 shall not of itself require that this Indenture or the Trustee be qualified under the TIA or constitute any admission or acknowledgment by any party hereto that any such qualification is required prior to the time this Indenture and the Trustee are required by the TIA to be so qualified.

Section 11.2.Notices.

Any notices or other communications required or permitted hereunder shall be in writing, and shall be sufficiently given if made by hand delivery, by facsimile, by telecopier or overnight courier guaranteeing next-day delivery or registered or certified mail, postage prepaid, return receipt requested, addressed as follows:

if to the Company or the Guarantors:

Lennar Corporation700 N.W. 107th AvenueMiami, Florida 33172
Attention: General Counsel
Facsimile: (305) 229-6650

with a copy to:

K&L Gates LLP599 Lexington AvenueNew York, NY 10022
Attention: David W. Bernstein
Facsimile: (212) 536-3901

if to the Trustee:

The Bank of New York Mellon Trust Company, N.A.10161 Centurion Parkway North
2^nd FloorJacksonville, FL 32256
Attention: Corporate Trust Administration

- 52 -

Each of the Company and the Trustee by written notice to the other may designate additional or different addresses for notices to such Person. Any notice or communication to the Company or the Trustee shall be deemed to have been given or made as of the date so delivered if hand delivered; when answered back, if telexed; when receipt is acknowledged, if faxed; and five (5) calendar days after mailing if sent by registered or certified mail, postage prepaid (except that a notice of change of address shall not be deemed to have been given until actually received by the addressee).

Any notice or communication mailed to a Holder shall be mailed by first class mail, certified or registered return receipt requested, or by overnight courier guaranteeing next day delivery to its address as it appears on the registration books of the Registrar; provided that notices given to Holders holding Notes in book-entry form may be given through the facilities of the Depositary or any successor depository. Any notice or communication shall be mailed to any Person as described in TIA Section 313(c), to the extent required by the TIA.

Failure to mail a notice or communication to a Holder or any defect in it shall not affect its sufficiency with respect to other Holders. If a notice or communication is mailed in the manner provided above, it is duly given, whether or not the addressee receives it.

Section 11.3.Electronic Instructions/Directions. The Trustee agrees to accept and act upon instructions or directions pursuant to this Indenture sent by unsecured e-mail, facsimile transmission or other similar unsecured electronic methods; provided, however, that (a) the party providing such written instructions, subsequent to such transmission of written instructions, shall provide the originally executed instructions or directions to the Trustee in a timely manner, and (b) such originally executed instructions or directions shall be signed by an authorized representative of the party providing such instructions or directions.  If a party elects to give the Trustee e-mail or facsimile instructions (or instructions by a similar electronic method) and the Trustee in its discretion elects to act upon such instructions, the Trustee’s understanding of such instructions shall be deemed controlling.  The Trustee shall not be liable for any losses, costs or expenses arising directly or indirectly from the Trustee’s reliance upon and compliance with such instructions notwithstanding such instructions conflict or are inconsistent with a subsequent written instruction.  The party providing electronic instructions agrees to assume all risks arising out of the use of such electronic methods to submit instructions and directions to the Trustee, including without limitation the risk of the Trustee acting on unauthorized instructions, and the risk or interception and misuse by third parties.

Section 11.4.Communications by Holders with Other Holders.

Holders may communicate pursuant to TIA Section 312(b) with other Holders with respect to their rights under this Indenture or the Notes. The Company, the Trustee, the Registrar and any other Person shall have the protection of TIA Section 312(c).

Section 11.5.Certificate and Opinion as to Conditions Precedent.

Upon any request or application by the Company to the Trustee to take any action under this Indenture, the Company shall furnish to the Trustee:

- 53 -

(5)an Officers’ Certificate, in form and substance satisfactory to the Trustee, stating that, in the opinion of the signers, all conditions precedent to be performed, if any, provided for in this Indenture relating to the proposed action have been complied with; and

(6)an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent to be performed, if any, provided for in this Indenture relating to the proposed action have been complied with (which counsel, as to factual matters, may rely on an Officers’ Certificate).

Section 11.6.Statements Required in Certificate or Opinion.

Each certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture, other than the Officers’ Certificate required by Section 4.4, shall include:

(1)a statement that the Person making such certificate or opinion has read such covenant or condition;

(2)a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based;

(3)a statement that, in the opinion of such Person, he has made such examination or investigation as is reasonably necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and

(4)a statement as to whether or not, in the opinion of such Person, such condition or covenant has been complied with.

Section 11.7.Rules by Trustee, Paying Agent, Registrar.

The Trustee may make reasonable rules in accordance with the Trustee’s customary practices for action by or at a meeting of Holders. The Paying Agent or Registrar may make reasonable rules forits functions.

Section 11.8.Legal Holidays.

If any payment date is due on a day other than a Business Day, such payment may be made on the next succeeding Business Day with the same force and effect as if made on the date that the relevant payment was due, and no interest shall accrue for the intervening period.

- 54 -

Section 11.9.Governing Law.

THIS INDENTURE AND THE NOTES, AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THE INDENTURE OR THE NOTES, SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BUT OTHERWISE WITHOUT REGARD TO CONFLICT OF LAWS RULES THAT WOULD APPLY THE LAWS OF ANY OTHER JURISDICTION. Each of the parties hereto agrees to submit to the jurisdiction of the courts of the State of New York sitting in the County of New York, or of the United States of America for the Southern District of New York in any action or proceeding arising out of or relating to this Indenture.

Section 11.10.No Adverse Interpretation of Other Agreements.

This Indenture may not be used to interpret another indenture, loan or debt agreement of the Company or any of its Subsidiaries. Any such indenture, loan or debt agreement may not be used to interpret this Indenture.

Section 11.11.No Personal Liability.

No director, officer, employee, incorporator, stockholder or partner, as such, past, present or future, of the Company, any of its successor corporations or any Subsidiary of the foregoing shall have any liability for any Obligations of the Company under the Notes or this Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of Notes by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for the issuance of the Notes.

Section 11.12.Successors. All agreements of the Company in this Indenture and the Notes shall bind their successors and permitted assigns. All agreements of the Trustee in this Indenture shall bind its successors and permitted assigns.

Section 11.13.Duplicate Originals. All parties may sign any number of copies of this Indenture. Each signed copy shall be an original, but all of them together shall represent the same agreement.

Section 11.14.Waiver of Jury Trial. EACH OF THE COMPANY, THE GUARANTORS AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTION CONTEMPLATED HEREBY.

Section 11.15.Force Majeure. In no event shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services; it being understood that the

- 55 -

Trustee shall use reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.

Section 11.16.Severability. In case any one or more of the provisions in this Indenture or in the Notes shall be held invalid, illegal or unenforceable, in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions shall not in any way be affected or impaired thereby, it being intended that all of the provisions hereof shall be enforceable to the full extent permitted by law.

[Signature page follows]

- 56 -

IN WITNESS WHEREOF, the parties to this Indenture have caused it to be duly executed as of the day and year first above written.

LENNAR CORPORATION

By:      /s/ Bruce Gross            

Name:    Bruce Gross
Title:    Vice President and    Chief Financial Officer

Authorized signatory for each of the Guarantors listed on Schedule I hereto

By:      /s/ Mark Sustana            

Name:    Mark Sustana
Title:    Secretary

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee

By:      /s/ Lawrence Dillard        

Name:    Lawrence Dillard
Title:    Vice President

[Signature Page to Indenture]

EXHIBIT A

[FORM OF SERIES A NOTE]

THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THIS SECURITY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.

THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS SECURITY MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) TO THE ISSUER OR ANY SUBSIDIARY OF THE ISSUER, (II) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (III) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” (AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT), (IV) IN AN OFFSHORE TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (V) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR (VI) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE U.S., AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY SUBSEQUENT PURCHASER OF THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

[THE FOREGOING LEGEND MAY BE REMOVED FROM THE SECURITY ON SATISFACTION OF THE CONDITIONS SPECIFIED IN THE INDENTURE.]

A-1

CUSIP No.: [●]

LENNAR CORPORATION

4.125% SENIOR NOTES DUE 2018, SERIES A

No. [●]    $[●]

Interest Rate:    4.125% per annum

Interest Payment Dates: March 15 and September 15, commencing September 15, 2013

Record Dates: March 1 and September 1

LENNAR CORPORATION, a Delaware corporation (the “Company,” which term includes any successor entities), for value received, promises to pay to or registered assigns, on December 1, 2018 (the “Maturity Date”), the principal amount of Dollars ($ ), together with interest thereon as hereinafter provided.

Reference is made to the further provisions of this Note contained herein, which will for all purposes have the same effect as if set forth at this place.

A-2

IN WITNESS WHEREOF, Lennar Corporation has caused this instrument to be signed manually or by facsimile by its duly authorized officer.

LENNAR CORPORATION

By: Name:
Title:

Dated: _____________________

A-3

TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

This is one of the Notes described in
the within-mentioned Indenture.

THE BANK OF NEW YORK MELLON
TRUST COMPANY, N.A., as Trustee

By: Authorized Signatory

Dated: _____________________

A-4

(REVERSE OF SECURITY)

4.125% Senior Note due 2018, Series A

Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to them in the Indenture relating to the Notes, dated as of February 4, 2013 (as amended from time to time, the “Indenture”), by and among Lennar Corporation, a Delaware corporation (the “Company”), the Guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”).

1.    INTEREST

The Company promises to pay interest on the principal amount of this Note at the rate per annum set forth above. Interest on the Notes will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from the Issue Date. The Company shall pay interest semi-annually in arrears on each Interest Payment Date, commencing as of the Interest Payment Date referred to above, on the Maturity Date and upon redemption. Interest will be computed on the basis of a 360-day year of twelve 30-day months and, in the case of a partial month, the actual number of days elapsed.

Payments of the Redemption Price, Change of Control Payment, principal and interest that are not made when due will accrue interest per annum at the rate of interest borne by the Notes, plus one percent, from and including, the relevant payment date to, but excluding, the date on which such defaulted amounts shall have been paid by the Company in accordance with the Indenture.

2.        METHOD OF PAYMENT

Subject to the terms and conditions of the Indenture, the Company shall (a) pay interest on the Notes (except defaulted interest) to the Persons who are the registered Holders of Notes at the close of business on the Record Date immediately preceding the Interest Payment Date even if the Notes are canceled, transferred or exchanged after such Record Date, and (b) make all other payments in respect of the Notes to the Persons who are registered Holders of Notes at the close of business on the Business Day preceding the Redemption Date or Maturity, as the case may be. Holders must surrender Notes to a Paying Agent to collect such payments in respect of the Notes referred to in clause (b) of the preceding sentence. The Company shall pay cash amounts in money of the United States that at the time of payment is legal tender for payment of public and private debts. However, the Company may make the cash payments by check payable in such money.

3.        PAYING AGENT, AND REGISTRAR

A-5

Initially, The Bank of New York Mellon Trust Company, N.A., a national banking association, shall act as Paying Agent and Registrar. The Company may appoint and change any Paying Agent, Registrar or co-registrar without notice, other than notice to the Trustee. The Company or any of its Subsidiaries or any of their Affiliates may act as Paying Agent, Registrar or co-registrar.

4.        INDENTURE

The Company issued the Notes under the Indenture. This Note is one of a duly authorized issue of Notes of the Company designated as its 4.125% Senior Notes due 2018, Series A (the “Initial Notes”). The Notes include the Initial Notes, the Private Exchange Notes and the Unrestricted Notes, as defined below, issued in exchange for the Initial Notes pursuant to the Registration Rights Agreement. The Initial Notes, the Private Exchange Notes and the Unrestricted Notes are treated as a single class of securities under the Indenture. The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939 (the “TIA”), as in effect on the date of the Indenture. Notwithstanding anything to the contrary herein, the Notes are subject to all such terms, and Holders of Notes are referred to the Indenture and the TIA for a statement of such terms. The Notes are general unsecured obligations of the Company. Each Holder, by accepting a Note, agrees to be bound by all of the terms and provisions of the Indenture, as the same may be amended from time to time in accordance with its terms.

5.        REDEMPTION AT THE OPTION OF THE COMPANY

No sinking fund is provided for the Notes. The Notes are redeemable as a whole, or in part, at any time and from time to time at the option of the Company. If the Company elects to redeem the Notes more than 60 days prior to the Maturity Date, the Redemption Price shall be equal to the greater of: (a) 100% of their principal amount; and (b) the present value of the Remaining Scheduled Payments on the Notes being redeemed on the Redemption Date, discounted to the Redemption Date, on a semiannual basis, at the Treasury Rate plus 50 basis points (0.50%). If the Company elects to redeem the Notes on or after the date that is 60 days prior to the Maturity Date, the Redemption Price shall be equal to 100% of their principal amount. In either case, the Company will also pay accrued interest on the principal amount of the Notes to be redeemed up to, but not including, the Redemption Date.

6.        NOTICE OF REDEMPTION AT THE OPTION OF THE COMPANY

Notice of redemption at the option of the Company shall be mailed at least 30 days but not more than 60 days before the Redemption Date to each Holder of Notes to be redeemed at the Holder’s registered address. If money sufficient to pay the Redemption Price of all Notes (or portions thereof) to be redeemed on the Redemption Date, together with all interest thereon accrued to but not including the Redemption Date, is deposited with the Paying Agent prior to or on the Redemption Date, interest ceases to accrue on such Notes or portions thereof

A-6

beginning on such Redemption Date. Notes in denominations larger than $1,000 may be redeemed in part but only in integral multiples of $1,000.

7.        REGISTRATION RIGHTS

Pursuant to the Registration Rights Agreement, the Company will be obligated to consummate an exchange offer pursuant to which the Holder of this Note shall have the right to exchange this Note for the Company’s 4.125% Senior Notes due 2018, Series B (the “Unrestricted Notes”), which will be registered under the Securities Act, in like principal amount and having terms identical in all material respects as the Initial Notes. The Holders of the Initial Notes shall be entitled to receive certain additional interest payments in the event such exchange offer is not consummated and upon certain other conditions, all pursuant to and in accordance with the terms of the Registration Rights Agreement.

8.        DENOMINATIONS; TRANSFER; EXCHANGE

The Notes are in registered form, without coupons, in denominations of $1,000 and integral multiplies of $1,000. A Holder may transfer Notes in accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any governmental taxes and fees required by law or permitted by the Indenture. The Registrar need not transfer or exchange any Notes selected for redemption (except, in the case of a Note to be redeemed in part, the portion of the Note not to be redeemed) or any Notes for a period of 15 days before any selection of Notes to be redeemed.

9.        PERSONS DEEMED OWNERS

The registered Holder of this Note may be treated as the owner of this Note for all purposes.

10.        UNCLAIMED MONEY OR PROPERTY

The Trustee and the Paying Agent shall return to the Company upon written request any money or property held by them for the payment of any amount with respect to the Notes that remains unclaimed for two years; provided, however, that the Trustee or such Paying Agent, before being required to make any such return, shall at the expense of the Company cause to be published once in a newspaper of general circulation in The City of New York or mail to each such Holder notice that such money or property remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such publication or mailing, any unclaimed money or property then remaining shall be returned to the Company. After return to the Company, Holders entitled to the money or property must look to the Company for payment as general creditors unless an applicable abandoned property law designates another Person, and all liability of the Trustee and Paying Agent with respect to the money or property will cease.

11.        AMENDMENT; WAIVER

A-7

Subject to certain exceptions set forth in the Indenture, (i) the Indenture or the Notes may be amended with the written consent of the Holders of at least a majority in aggregate principal amount of the Notes at the time outstanding and (ii) certain defaults or noncompliance with certain provisions may be waived with the written consent of the Holders of a majority in aggregate principal amount of the Notes at the time outstanding. Subject to certain exceptions set forth in the Indenture, without the consent of any Holder, the Company and the Trustee may amend the Indenture or the Notes to cure any ambiguity, defect or inconsistency, to make any change that does not adversely affect the right of any Holder, to convey, transfer, assign, mortgage or pledge to the Trustee as security for the Notes any property or assets, to evidence the succession of another corporation to the Company (or successive successions) and the assumption by the successor corporation of the covenants, agreements and obligations of the Company, to add to the covenants of the Company such further covenants, restrictions or conditions as the Board of Directors and the Trustee shall consider to be for the benefit of the Holders of Notes, and to make the occurrence, or the occurrence and continuance, of a default in any such additional covenants, restrictions or conditions a Default or an Event of Default permitting the enforcement of all or any of the several remedies provided in the Indenture, to evidence and provide for the acceptance of appointment hereunder of a successor Trustee with respect to the Notes, or to modify, eliminate or add to the provisions of the Indenture to such extent as shall be necessary for the Indenture to comply with the TIA, or under any similar federal statute hereafter enacted.

12.        DEFAULTS AND REMEDIES

Under the Indenture, Events of Default include (i) a default by the Company in the payment of any interest which continues for more than 30 days after the due date, (ii) a default by the Company in the payment of any principal or Redemption Price or Repurchase Price due with respect to the Notes; (iii) a default by the Company or any Restricted Subsidiary with respect to its obligation to pay Indebtedness for money borrowed by the Company or a Restricted Subsidiary (other than Non-Recourse Indebtedness), which default shall have resulted in the acceleration of, or be a failure to pay at final maturity, Indebtedness aggregating more than $50 million; (iv) a failure to perform any other covenant or warranty of the Company herein and in the Indenture, which continues for 30 days after written notice; (v) final judgments or orders are rendered against the Company or any Restricted Subsidiary which require the payment by the Company or any Restricted Subsidiary of an amount (to the extent not covered by insurance) in excess of $50 million and such judgments or orders remain unstayed or unsatisfied for more than 60 days and are not being contested in good faith by appropriate proceedings; (vi) the Company or any Significant Subsidiary (or group of Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary), pursuant to any Bankruptcy Law applicable to the Company or such Significant Subsidiary (or group of Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary): (A) commences a voluntary case; (B) consents to the entry of an order for relief against it or them in an involuntary case against it or them; (C) consents to the appointment of a Custodian of it or them or for any substantial part of its or their property; or (D) makes a general assignment for the benefit of its or their creditors; or (vii) a court of competent jurisdiction enters an order or decree under any applicable Bankruptcy Law: (A) for relief in an involuntary case against the Company or any Significant Subsidiary (or group of Subsidiaries

A-8

that, taken as a whole, would constitute a Significant Subsidiary); (B) appointing a Custodian of the Company or any Significant Subsidiary (or group of Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary) or for any substantial part of its or their respective property; or (C) ordering the winding up or liquidation of the Company or any Significant Subsidiary (or group of Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary); and the order or decree remains unstayed and in effect for 90 days. If an Event of Default occurs and is continuing, the Trustee, or the Holders of at least 25% in aggregate principal amount of the Notes at the time outstanding, may declare the outstanding principal of the Notes and any accrued and unpaid interest through the date of such declaration on all of the Notes to be immediately due and payable. Certain events of bankruptcy or insolvency are Events of Default which shall result in the outstanding principal amount of all Notes being declared due and payable immediately upon the occurrence of such Events of Default.

Holders may not enforce the Indenture or the Notes except as provided in the Indenture. The Trustee may refuse to enforce the Indenture and the Notes unless it receives indemnity or security satisfactory to it. Subject to certain limitations, conditions and exceptions, Holders of a majority in aggregate principal amount of the Notes at the time outstanding may direct the Trustee in its exercise of any trust or power, including the annulment of a declaration of acceleration. The Trustee may withhold from Holders notice of any continuing default (except a default in payment of amounts specified in clauses (i) and (ii) above) if it determines that withholding notice is in their interests.

13.        TRUSTEE DEALINGS WITH THE COMPANY

The Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of Notes and may otherwise deal with and collect obligations owed to it by the Company or its Affiliates and may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not Trustee.

14.        NO RECOURSE AGAINST OTHERS

A director, officer, employee, incorporator, stockholder or partner, as such, of the Company, any of the Company’s successor corporations or any Subsidiary of the foregoing shall not have any liability for any obligations of the Company under the Notes or the Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. By accepting a Note, each Holder waives and releases all such liability. The waiver and release are part of the consideration for the issue of the Notes.

15.        GUARANTEES

This Note will be entitled to the benefits of certain Guarantees, if any, made for the benefit of the Holders. Reference is hereby made to the Indenture for a statement of the respective rights, limitations of rights, duties and obligations thereunder of the Guarantors, the Trustee and the Holders.

A-9

16.        RANKING

The Notes shall be direct, unsecured obligations of the Company and shall rank paripassu in right of payment with all other unsecured and unsubordinated indebtedness of the Company. The Guarantees shall be direct, unsecured obligations of the Guarantors and shall rank paripassu in right of payment with all other unsecured and unsubordinated indebtedness of the Guarantors.

17.        AUTHENTICATION

This Note shall not be valid until an authorized officer of the Trustee manually signs the Trustee’s Certificate of Authentication on the other side of this Note.

18.        ABBREVIATIONS

Customary abbreviations may be used in the name of a Holder or an assignee, such as TEN COM (=tenants in common), TENANT (=tenants by the entireties), JT TEN (=joint tenants with right of survivorship and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors Act).

19.        GOVERNING LAW

THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN THE INDENTURE AND THIS NOTE.

20.        CHANGE OF CONTROL

If a Change of Control Triggering Event occurs, unless the Company has exercised its option to redeem the Notes by notifying the Holders to that effect as described above, the Company shall make an offer (a “Change of Control Offer”) to each Holder of Notes to repurchase all or any part (equal to one thousand U.S. dollars ($1,000) or integral multiples of $1,000 in excess thereof) of that Holder’s Notes on the terms set forth below. In a Change of Control Offer, the Company shall offer payment in cash equal to 101% of the aggregate principal amount of the Notes repurchased, plus accrued and unpaid interest, if any, on the Notes repurchased to the date of repurchase (a “Change of Control Payment”). Within 30 days following any Change of Control Triggering Event or, at the Company’s option, prior to any Change of Control, but after public announcement of the transaction that constitutes or may constitute the Change of Control, the Company shall mail a notice to Holders, describing the transaction that constitutes or may constitute the Change of Control Triggering Event and offering to repurchase the Notes on the date specified in the notice, which date will be no earlier than 30 days and no later than 60 days from the date that notice is mailed, other than as may be required by law (a “Change of Control Payment Date”). The notice shall, if mailed prior to the date of consummation of the Change of Control, state that the Change of Control Offer is conditioned on the Change of Control Triggering Event occurring on or prior to the applicable Change of Control Payment Date.

A-10

On each Change of Control Payment Date, the Company shall, to the extent lawful, accept for payment all Notes or portions of Notes properly tendered pursuant to the Change of Control Offer, deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Notes or portions of Notes properly tendered, and deliver or cause to be delivered to the Trustee the Notes properly accepted together with an Officers’ Certificate stating the aggregate principal amount of Notes or portions of Notes being repurchased and that all conditions precedent provided for in the Indenture to the Change of Control Offer and to the repurchase by the Company of Notes pursuant to the Change of Control Offer have been complied with.

The Company shall not be required to make a Change of Control Offer upon the occurrence of a Change of Control Triggering Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the Company and the third party repurchases all Notes properly tendered and not withdrawn under its offer.

The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase of the Notes as a result of a Change of Control Triggering Event. To the extent that the provisions of any such securities laws or regulations conflict with the Change of Control Offer provisions herein, the Company will comply with those securities laws and regulations and shall not be deemed to have breached its obligations under the Change of Control Offer provisions herein and in the Indenture by virtue of any such conflict.

The Company shall furnish to any Holder upon written request and without charge a copy of the Indenture which has in it the text of this Note in larger type. Requests may be made to:

Lennar Corporation

700 N.W. 107^th Avenue

Miami, Florida 33172

Attn: General Counsel

A-11

ASSIGNMENT FORM

If you, the Holder, want to assign this Note, fill in the form below and have your signature guaranteed:

I or we assign and transfer this Note to:

____________________________________________

____________________________________________

____________________________________________

(Print or type name, address and zip code and social security or tax ID number of assignee)

and irrevocably appoint _____________________, agent to transfer this Note on the books of the Company. The agent may substitute another to act for him.

Dated: ______________

Signed: _______________________

(Sign exactly as your name appears

on the other side of this Note)

Signature Guarantee: ________________________

Signature must be guaranteed by an “eligible guarantor institution,” that is, a bank, stockbroker, savings and loan association or credit union meeting the requirements of the Registrar, which requirements include membership or participation in the Securities Transfer Agents Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934.

In connection with any transfer of this Note occurring prior to the date which is the earlier of (i) the date of the declaration by the SEC of the effectiveness of a registration statement under the Securities Act of 1933, as amended (the “Securities Act”), covering resales of this Note (which effectiveness shall not have been suspended or terminated at the date of the transfer) and (ii) the later of (x) the first anniversary of the Issue Date and (y) if the Note constitutes a Restricted Security and any Initial Notes are issued after the Issue Date pursuant to Section 2.2 of the Indenture, the last day of the period of any resale restrictions imposed on such additional Initial Notes issued pursuant to Section 2.2 of the Indenture (provided, however, that neither the Company nor any affiliate of the Company has held any beneficial interest in such Note, or portion thereof, or any predecessor security at any time on or prior to such date), the undersigned confirms that it has not utilized any general solicitation or general advertising in connection with the transfer:

[Check One]

A-12

(1) ___ to the Company or a Subsidiary thereof; or

(2) ___ pursuant to and in compliance with Rule 144A under the Securities Act; or

(3) ___ to an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act) that has furnished to the Trustee a signed letter containing certain representations and agreements (the form of which letter can be obtained from the Trustee); or

(4) ___ outside the United States to a “foreign person” in compliance with Rule 904 of Regulation S under the Securities Act; or

(5) ___ pursuant to the exemption from registration provided by Rule 144 under the Securities Act; or

(6) ___ pursuant to an effective registration statement under the Securities Act; or

(7) ___ pursuant to another available exemption from the registration requirements of the Securities Act.

and unless the box below is checked, the undersigned confirms that such Note is not being transferred to an “affiliate” of the Company as defined in Rule 144 under the Securities Act (an “Affiliate”):

The transferee is an Affiliate of the Company.

Unless one of the items is checked, the Trustee will refuse to register any of the Notes evidenced by this certificate in the name of any person other than the registered Holder thereof; provided, however, that if item (3), (4), (5) or (7) is checked, the Company or the Trustee may require, prior to registering any such transfer of the Notes, in their sole discretion, such written legal opinions, certifications (including an investment letter in the case of box (3) or (4) and other information as the Trustee or the Company have reasonably requested to confirm that such transfer is being made pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.

If none of the foregoing items are checked, the Trustee or Registrar shall not be obligated to register this Note in the name of any person other than the Holder hereof unless and until the conditions to any such transfer of registration set forth herein and in Section 2.17 of the Indenture shall have been satisfied.

Dated: ___________________        Signed: ________________________

(Sign exactly as your name appears

on the other side of this Note)

Signature Guarantee: ___________________________

A-13

TO BE COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED

The undersigned represents and warrants that it is purchasing this Note for its own account or an account with respect to which it exercises sole investment discretion and that it and any such account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act and is aware that the sale to it is being made in reliance on Rule 144A and acknowledges that it has received such information regarding the Company as the undersigned has requested pursuant to Rule 144A or has determined not to request such information and that it is aware that the transferor is relying upon the undersigned’s foregoing representations in order to claim the exemption from registration provided by Rule 144A.

Dated:

NOTICE:    To be executed by                                an executive officer

A-14

EXHIBIT B

[FORM OF SERIES B NOTE]

CUSIP No.: [●]

LENNAR CORPORATION

4.125% SENIOR NOTES DUE 2018

SERIES B

No. [●]    $[●]

Interest Rate:    4.125% per annum

Interest Payment Dates: March 15 and September 15, commencing September 15, 2013

Record Dates: March 1 and September 1

LENNAR CORPORATION, a Delaware corporation (the “Company,” which term includes any successor entities), for value received, promises to pay to or registered assigns, on December 1, 2018 (the “Maturity Date”), the principal amount of Dollars ($ ), together with interest thereon as hereinafter provided.

Reference is made to the further provisions of this Note contained herein, which will for all purposes have the same effect as if set forth at this place.

B-1

IN WITNESS WHEREOF, Lennar Corporation has caused this instrument to be signed manually or by facsimile by its duly authorized officers.

LENNAR CORPORATION

By: Name:
Title:

Dated: _____________________

B-2

TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

This is one of the Notes described in
the within-mentioned Indenture.

THE BANK OF NEW YORK MELLON
TRUST COMPANY, N.A., as Trustee

By: Authorized Signatory

Dated: _____________________

B-3

(REVERSE OF SECURITY)

4.125% Senior Note due 2018, Series B

Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to them in the Indenture relating to the Notes, dated as of February 4, 2013 (as amended from time to time, the “Indenture”), by and among Lennar Corporation, a Delaware corporation (the “Company”), the Guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”).

1.    INTEREST

The Company promises to pay interest on the principal amount of this Note at the rate per annum set forth above. Interest on the Notes will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from the Issue Date. The Company shall pay interest semi-annually in arrears on each Interest Payment Date, commencing as of the Interest Payment Date referred to above, on the Maturity Date and upon redemption. Interest will be computed on the basis of a 360-day year of twelve 30-day months and, in the case of a partial month, the actual number of days elapsed.

Payments of the Redemption Price, Change of Control Payment, principal and interest that are not made when due will accrue interest per annum at the rate of interest borne by the Notes, plus one percent, from and including, the relevant payment date to, but excluding, the date on which such defaulted amounts shall have been paid by the Company in accordance with the Indenture.

2.        METHOD OF PAYMENT

Subject to the terms and conditions of the Indenture, the Company shall (a) pay interest on the Notes (except defaulted interest) to the Persons who are the registered Holders of Notes at the close of business on the Record Date immediately preceding the Interest Payment Date even if the Notes are canceled transferred or exchanged after such Record Date, and (b) make all other payments in respect of the Notes to the Persons who are registered Holders of Notes at the close of business on the Business Day preceding the Redemption Date or the Maturity Date, as the case may be. Holders must surrender Notes to a Paying Agent to collect such payments in respect of the Notes referred to in clause (b) of the preceding sentence. The Company shall pay cash amounts in money of the United States that at the time of payment is legal tender for payment of public and private debts. However, the Company may make the cash payments by check payable in such money.

3.        PAYING AGENT, AND REGISTRAR

Initially, The Bank of New York Mellon Trust Company, N.A., a national banking association, shall act as Paying Agent and Registrar. The Company may appoint and change any Paying Agent, Registrar or co-registrar without notice, other than notice to the Trustee. The

B-4

Company or any of its Subsidiaries or any of their Affiliates may act as Paying Agent, Registrar or co-registrar.

4.        INDENTURE

The Company issued the Notes under the Indenture. This Note is one of a duly authorized issue of Notes of the Company designated as its 4.125% Senior Notes due 2018, Series B (the “Unrestricted Notes”). The Notes include the Initial Notes, the Private Exchange Notes and the Unrestricted Notes, issued in exchange for the Initial Notes pursuant to the Registration Rights Agreement. The Initial Notes, the Private Exchange Notes and the Unrestricted Notes are treated as a single class of securities under the Indenture. The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939 (the “TIA”), as in effect on the date of the Indenture. Notwithstanding anything to the contrary herein, the Notes are subject to all such terms, and Holders of Notes are referred to the Indenture and the TIA for a statement of such terms. The Notes are general unsecured obligations of the Company. Each Holder, by accepting a Note, agrees to be bound by all of the terms and provisions of the Indenture, as the same may be amended from time to time in accordance with its terms.

5.        REDEMPTION AT THE OPTION OF THE COMPANY

No sinking fund is provided for the Notes. The Notes are redeemable as a whole, or in part, at any time and from time to time at the option of the Company. If the Company elects to redeem the Notes more than 60 days prior to the Maturity Date, the Redemption Price shall be equal to the greater of: (a) 100% of their principal amount; and (b) the present value of the Remaining Scheduled Payments on the Notes being redeemed on the Redemption Date, discounted to the Redemption Date, on a semiannual basis, at the Treasury Rate plus 50 basis points (0.50%). If the Company elects to redeem the Notes on or after the date that is 60 days prior to the Maturity Date, the Redemption Price shall be equal to 100% of their principal amount. In either case, the Company will also pay accrued interest on the principal amount of the Notes to be redeemed up to, but not including, the Redemption Date.

6.        NOTICE OF REDEMPTION AT THE OPTION OF THE COMPANY

Notice of redemption at the option of the Company shall be mailed at least 30 days but not more than 60 days before the Redemption Date to each Holder of Notes to be redeemed at the Holder’s registered address. If money sufficient to pay the Redemption Price of all Notes (or portions thereof) to be redeemed on the Redemption Date, together with all interest thereon accrued to but not including the Redemption Date, is deposited with the Paying Agent prior to or on the Redemption Date, interest ceases to accrue on such Notes or portions thereof beginning on such Redemption Date. Notes in denominations larger than $1,000 may be redeemed in part but only in integral multiples of $1,000.

B-5

7.        DENOMINATIONS; TRANSFER; EXCHANGE

The Notes are in registered form, without coupons, in denominations of $1,000 and integral multiplies of $1,000. A Holder may transfer Notes in accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any governmental taxes and fees required by law or permitted by the Indenture. The Registrar need not transfer or exchange any Notes selected for redemption (except, in the case of a Note to be redeemed in part, the portion of the Note not to be redeemed) or any Notes for a period of 15 days before any selection of Notes to be redeemed.

8.        PERSONS DEEMED OWNERS

The registered Holder of this Note may be treated as the owner of this Note for all purposes.

9.        UNCLAIMED MONEY OR PROPERTY

The Trustee and the Paying Agent shall return to the Company upon written request any money or property held by them for the payment of any amount with respect to the Notes that remains unclaimed for two years; provided, however, that the Trustee or such Paying Agent, before being required to make any such return, shall at the expense of the Company cause to be published once in a newspaper of general circulation in The City of New York or mail to each such Holder notice that such money or property remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such publication or mailing, any unclaimed money or property then remaining shall be returned to the Company. After return to the Company, Holders entitled to the money or property must look to the Company for payment as general creditors unless an applicable abandoned property law designates another Person, and all liability of the Trustee and Paying Agent with respect to the money or property will cease.

10.        AMENDMENT; WAIVER

Subject to certain exceptions set forth in the Indenture, (i) the Indenture or the Notes may be amended with the written consent of the Holders of at least a majority in aggregate principal amount of the Notes at the time outstanding and (ii) certain defaults or noncompliance with certain provisions may be waived with the written consent of the Holders of a majority in aggregate principal amount of the Notes at the time outstanding. Subject to certain exceptions set forth in the Indenture, without the consent of any Holder, the Company and the Trustee may amend the Indenture or the Notes to cure any ambiguity, defect or inconsistency, to make any change that does not adversely affect the right of any Holder, to convey, transfer, assign, mortgage or pledge to the Trustee as security for the Notes any property or assets, to evidence the succession of another corporation to the Company (or successive successions) and the assumption by the successor corporation of the covenants, agreements and obligations of the Company, to add to the covenants of the Company such further covenants, restrictions or conditions as the Board of Directors and the Trustee shall consider to be for the benefit of the Holders of Notes, and to make the occurrence, or the occurrence and continuance, of a default in

B-6

any such additional covenants, restrictions or conditions a Default or an Event of Default permitting the enforcement of all or any of the several remedies provided in the Indenture, to evidence and provide for the acceptance of appointment hereunder of a successor Trustee with respect to the Notes, or to modify, eliminate or add to the provisions of the Indenture to such extent as shall be necessary for the Indenture to comply with the TIA, or under any similar federal statute hereafter enacted.

11.        DEFAULTS AND REMEDIES

Under the Indenture, Events of Default include (i) a default by the Company in the payment of any interest which continues for more than 30 days after the due date, (ii) a default by the Company in the payment of any principal or Redemption Price or Repurchase Price due with respect to the Notes; (iii) a default by the Company or any Restricted Subsidiary with respect to its obligation to pay Indebtedness for money borrowed by the Company or a Restricted Subsidiary (other than Non-Recourse Indebtedness), which default shall have resulted in the acceleration of, or be a failure to pay at final maturity, Indebtedness aggregating more than $50 million; (iv) a failure to perform any other covenant or warranty of the Company herein and in the Indenture, which continues for 30 days after written notice; (v) final judgments or orders are rendered against the Company or any Restricted Subsidiary which require the payment by the Company or any Restricted Subsidiary of an amount (to the extent not covered by insurance) in excess of $50 million and such judgments or orders remain unstayed or unsatisfied for more than 60 days and are not being contested in good faith by appropriate proceedings; (vi) the Company or any Significant Subsidiary (or group of Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary), pursuant to any Bankruptcy Law applicable to the Company or such Significant Subsidiary (or group of Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary): (A) commences a voluntary case; (B) consents to the entry of an order for relief against it or them in an involuntary case against it or them; (C) consents to the appointment of a Custodian of it or them or for any substantial part of its or their property; or (D) makes a general assignment for the benefit of its or their creditors; or (vii) a court of competent jurisdiction enters an order or decree under any applicable Bankruptcy Law: (A) for relief in an involuntary case against the Company or any Significant Subsidiary (or group of Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary); (B) appointing a Custodian of the Company or any Significant Subsidiary (or group of Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary) or for any substantial part of its or their respective property; or (C) ordering the winding up or liquidation of the Company or any Significant Subsidiary (or group of Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary); and the order or decree remains unstayed and in effect for 90 days. If an Event of Default occurs and is continuing, the Trustee, or the Holders of at least 25% in aggregate principal amount of the Notes at the time outstanding, may declare the outstanding principal of the Notes and any accrued and unpaid interest through the date of such declaration on all of the Notes to be immediately due and payable. Certain events of bankruptcy or insolvency are Events of Default which shall result in the outstanding principal amount of all Notes being declared due and payable immediately upon the occurrence of such Events of Default.

B-7

Holders may not enforce the Indenture or the Notes except as provided in the Indenture. The Trustee may refuse to enforce the Indenture and the Notes unless it receives indemnity or security satisfactory to it. Subject to certain limitations, conditions and exceptions, Holders of a majority in aggregate principal amount of the Notes at the time outstanding may direct the Trustee in its exercise of any trust or power, including the annulment of a declaration of acceleration. The Trustee may withhold from Holders notice of any continuing default (except a default in payment of amounts specified in clauses (i) and (ii) above) if it determines that withholding notice is in their interests.

12.        TRUSTEE DEALINGS WITH THE COMPANY

The Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of Notes and may otherwise deal with and collect obligations owed to it by the Company or its Affiliates and may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not Trustee.

13.        NO RECOURSE AGAINST OTHERS

A director, officer, employee, incorporator, stockholder or partner, as such, of the Company, any of the Company’s successor corporations or any Subsidiary of the foregoing shall not have any liability for any obligations of the Company under the Notes or the Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. By accepting a Note, each Holder waives and releases all such liability. The waiver and release are part of the consideration for the issue of the Notes.

14.        GUARANTEES

This Note will be entitled to the benefits of certain Guarantees, if any, made for the benefit of the Holders. Reference is hereby made to the Indenture for a statement of the respective rights, limitations of rights, duties and obligations thereunder of the Guarantors, the Trustee and the Holders.

15.        RANKING

The Notes shall be direct, unsecured obligations of the Company and shall rank paripassu in right of payment with all other unsecured and unsubordinated indebtedness of the Company. The Guarantees shall be direct, unsecured obligations of the Guarantors and shall rank paripassu in right of payment with all other unsecured and unsubordinated indebtedness of the Guarantors.

16.        AUTHENTICATION

This Note shall not be valid until an authorized officer of the Trustee manually signs the Trustee’s Certificate of Authentication on the other side of this Note.

17.        ABBREVIATIONS

B-8

Customary abbreviations may be used in the name of a Holder or an assignee, such as TEN COM (=tenants in common), TENANT (=tenants by the entireties), JT TEN (=joint tenants with right of survivorship and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors Act).

18.        GOVERNING LAW

THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN THE INDENTURE AND THIS NOTE.

19.        CHANGE OF CONTROL

If a Change of Control Triggering Event occurs, unless the Company has exercised its option to redeem those Notes by notifying the Holders to that effect as described above, the Company shall make an offer (a “Change of Control Offer”) to each Holder of Notes to repurchase all or any part (equal to one thousand U.S. dollars ($1,000) or integral multiples of $1,000 in excess thereof) of that Holder’s Notes on the terms set forth below. In a Change of Control Offer, the Company shall offer payment in cash equal to 101% of the aggregate principal amount of the Notes repurchased, plus accrued and unpaid interest, if any, on the Notes repurchased to the date of repurchase (a “Change of Control Payment”). Within 30 days following any Change of Control Triggering Event or, at the Company’s option, prior to any Change of Control, but after public announcement of the transaction that constitutes or may constitute the Change of Control, the Company shall mail a notice to Holders, describing the transaction that constitutes or may constitute the Change of Control Triggering Event and offering to repurchase the Notes on the date specified in the notice, which date will be no earlier than 30 days and no later than 60 days from the date that notice is mailed, other than as may be required by law (a “Change of Control Payment Date”). The notice shall, if mailed prior to the date of consummation of the Change of Control, state that the Change of Control Offer is conditioned on the Change of Control Triggering Event occurring on or prior to the applicable Change of Control Payment Date.

On each Change of Control Payment Date, the Company shall, to the extent lawful, accept for payment all Notes or portions of Notes properly tendered pursuant to the Change of Control Offer, deposit with the paying agent an amount equal to the Change of Control Payment in respect of all Notes or portions of Notes properly tendered, and deliver or cause to be delivered to the Trustee the Notes properly accepted together with an Officers’ Certificate stating the aggregate principal amount of Notes or portions of Notes being repurchased and that all conditions precedent provided for in the Indenture to the Change of Control Offer and to the repurchase by the Company of Notes pursuant to the Change of Control Offer have been complied with.

The Company shall not be required to make a Change of Control Offer upon the occurrence of a Change of Control Triggering Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the Company and the third party repurchases all Notes properly tendered and not withdrawn under its offer.

B-9

The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase of the Notes as a result of a Change of Control Triggering Event. To the extent that the provisions of any such securities laws or regulations conflict with the Change of Control Offer provisions herein, the Company will comply with those securities laws and regulations and shall not be deemed to have breached its obligations under the Change of Control Offer provisions herein and in the Indenture by virtue of any such conflict.

The Company shall furnish to any Holder upon written request and without charge a copy of the Indenture which has in it the text of this Note in larger type. Requests may be made to:

Lennar Corporation

700 N.W. 107^th Avenue

Miami, Florida 33172

Attn: General Counsel

B-10

ASSIGNMENT FORM

If you, the Holder, want to assign this Note, fill in the form below and have your signature guaranteed:

I or we assign and transfer this Note to:

__________________________________________

__________________________________________

__________________________________________

(Print or type name, address and zip code and social security or tax ID number of assignee)

and irrevocably appoint ________________________, agent to transfer this Note on the books of the Company. The agent may substitute another to act for him.

Dated: ____________    Signed: ______________________

(Sign exactly as your name appears

on the other side of this Note)

Signature Guarantee: ______________________

Signature must be guaranteed by an “eligible guarantor institution,” that is, a bank, stockbroker, savings and loan association or credit union meeting the requirements of the Registrar, which requirements include membership or participation in the Securities Transfer Agents Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934.

B-11

EXHIBIT C

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEEOF THE DEPOSITARY, OR BY ANY SUCH NOMINEE OF THE DEPOSITARY, OR BY THE DEPOSITARY OR NOMINEE OF SUCH SUCCESSOR DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTEDBY ANAUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, ANEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENTFOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANYCERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. REPRESENTATIVE OR TO SUCHOTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OFDTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUEOR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THEREGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF CEDE &CO. OR TO ASUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERSMADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN SECTION 2.17 OF THE INDENTURE.

C-1

EXHIBIT D

Form of Certificate To Be

Delivered in Connection with

Transfers to Non-QIB Accredited Investors

[Date]

Ladies and Gentlemen:

In connection with our proposed purchase of 4.125% Senior Notes due 2018, Series A (the “Notes”) of Lennar Corporation (“the Company”), we confirm that:

1.    We understand that any subsequent transfer of the Notes is subject to certain restrictions and conditions set forth in the indenture relating to the Notes (the “Indenture”) and the undersigned agrees to be bound by, and not to resell, pledge or otherwise transfer the Notes except in compliance with, such restrictions and conditions and the Securities Act of 1933, as amended (the “Securities Act”), and all applicable State securities laws.

2.    We understand that the offer and sale of the Notes have not been registered under the Securities Act or any other applicable securities law, and that the Notes may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except as permitted in the following sentence. We agree, on our own behalf and on behalf of any accounts for which we are acting as hereinafter stated, that if we should sell any Notes, we will do so only (i) to the Company or any subsidiary thereof, (ii) inside the United States in accordance with Rule 144A under the Securities Act to a person who we reasonably believe is a “qualified institutional buyer” (as defined in Rule 144A promulgated under the Securities Act), (iii) inside the United States to an institutional “accredited investor” (as defined below) that, prior to such transfer, furnishes (or has furnished on its behalf by a U.S. broker-dealer) to the Trustee (as defined in the Indenture) a signed letter containing certain representations and agreements relating to the restrictions on transfer of the Notes (the form of which letter can be obtained from the Trustee), (iv) outside the United States in accordance with Rule 904 of Regulation S promulgated under the Securities Act, (v) pursuant to the exemption from registration provided by Rule 144 under the Securities Act (if available), or (vi) pursuant to an effective registration statement under the Securities Act, and we further agree to provide to any person purchasing any of the Notes from us a notice advising such purchaser that resales of the Notes are restricted as stated herein.

3.    We understand that, on any proposed resale of any Notes, we will be required to furnish to the Trustee and the Company such certification, legal opinions and other information as the Trustee and the Company may reasonably require to confirm that the proposed sale complies with the foregoing restrictions. We further understand that the Notes purchased by us will bear a legend to the foregoing effect.

D-1

4.    We are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) and have such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of our investment in the Notes, and we and any accounts for which we are acting are each able to bear the economic risk of our or their investment, as the case may be.

5.    We are acquiring the Notes purchased by us for our account or for one or more accounts (each of which is an institutional “accredited investor”) as to each of which we exercise sole investment discretion.

6.    We have received a copy of the Company’s Offering Memorandum dated January 30, 2013, and acknowledge that we have had access to such financial and other information, and have been afforded the opportunity to ask such questions of representatives of the Company and receive answers thereto, as we deem necessary in connection with our decision to purchase the Notes.

You, the Company, the Initial Purchasers and others are entitled to rely upon this letter and are irrevocably authorized to produce this letter or a copy hereof to any interested party in any administrative or legal proceedingor official inquiry with respect to the matters covered hereby.

Very truly yours,

[Name of Transferee]

By:    ________________

Name:

Title:

D-2

EXHIBIT E

Form of Certificate To Be Delivered

in Connection with Transfers

Pursuant to Regulation S

Re: Lennar Corporation (the “Company”) 4.125% Senior Notes, Series A due 2018 (the “Notes”)

Ladies and Gentlemen:

In connection with our proposed sale of $__________ aggregate principal amount of the Notes, we confirm that such sale has been effected pursuant to and in accordance with Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and, accordingly, we represent that:

(1)    the offer of the Notes was not made to a person in the United States;

(2)    either (a) at the time the buy offer was originated, the transferee was outside the United States or we and any person acting on our behalf reasonably believed that the transferee was outside the United States, or (b) the transaction was executed in, on or through the facilities of a designated offshore securities market and neither we nor any person acting on our behalf knows that the transaction has been prearranged with a buyer in the United States;

(3)    no directed selling efforts have been made in the United States in contravention of the requirements of Rule 903(b) or Rule 904(b) of Regulation S, as applicable;

(4)    the transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act; and

(5)    we have advised the transferee of the transfer restrictions applicable to the Notes.

You, the Company, the Initial Purchasers and others are entitled to rely upon this letter and are irrevocably authorized to produce this letter or a copy hereof to any interested party in any administrative or legal proceedings or official inquiry with respect to the matters covered hereby. Terms used in this certificate have the meanings set forth in Regulation S.

Very truly yours,

[Name of Transferor]

By:    ________________

Name:

Title:

E-1

EXHIBIT F

GUARANTEE

For value received, each of the Persons named in Schedule I hereto (collectively, the “Guarantors”) hereby unconditionally guarantees, as principal obligor and not only as a surety, to the Holders of the 4.125% Senior Notes due 2018 (the “Notes”) of Lennar Corporation, a Delaware corporation (the “Company”), the cash payments in United States Dollars of any amounts due with respect to the Notes in the amounts and at the times when due and interest on all overdue amounts, to the extent lawful, and the payment or performance of all other obligations of the Company under the Indenture (as defined below) or the Notes, to the Holders and the Trustee (as defined below), all in accordance with and subject to the terms and limitations of the Notes, Article X of the Indenture and this Guarantee. The validity and enforceability of this Guarantee shall not be affected by the fact that it is not affixed to any particular Note.

Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Indenture, dated as of February 4, 2013, among the Company, the Guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”), as amended or supplemented (the “Indenture”), governing the Company’s issuance of the Notes.

The obligations of each of the Guarantors to the Holders of Notes and to the Trustee pursuant to this Guarantee and the Indenture are expressly set forth in Article X of the Indenture and reference is hereby made to the Indenture for the precise terms of this Guarantee and all of the other provisions of the Indenture to which this Guarantee relates.

THIS GUARANTEE, AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS GUARANTEE, SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BUT OTHERWISE WITHOUT REGARD TO CONFLICT OF LAWS RULES THAT WOULD APPLY THE LAWS OF ANY OTHER JURISDICTION. Each of the Guarantors hereto agrees to submit to the jurisdiction of the courts of the State of New York sitting in the County of New York, or of the United States of America for the Southern District of New York in any action or proceeding arising out of or relating to this Guarantee.

This Guarantee is subject to suspension and release upon the terms set forth in the Indenture.

The undersigned acknowledge that this Guarantee is subject to the TIA and each of the undersigned agrees to discharge its duties under the TIA.

F-1

IN WITNESS WHEREOF, each of the Guarantors listed on Schedule I hereto has caused this Guarantee to be duly executed.

Dated:

Authorized signatory for each of the Guarantors

listed on Schedule I hereto

By:

Name:    
Title:

F-2

SCHEDULE I

Guarantors

308 Furman, Ltd.

360 Developers, LLC

Ann Arundel Farms, Ltd.

Aquaterra Utilities, Inc.

Asbury Woods L.L.C.

Astoria Options, LLC

Autumn Creek Development, Ltd.

Aylon, LLC

Bainebridge 249, LLC

Bay Colony Expansion 369, Ltd.

Bay River Colony Development, Ltd.

BB Investment Holdings, LLC

BCI Properties, LLC

Bellagio Lennar, LLC

Belle Meade LEN Holdings, LLC

Belle Meade Partners, LLC

BPH I, LLC

Bramalea California, Inc.

Bressi Gardenlane, LLC

Builders LP, Inc.

Cambria L.L.C.

Cary Woods, LLC

Casa Marina Development, LLC

Schedule I - 1

Caswell Acquisition Group, LLC

Cedar Lakes II, LLC

Chancellor Place at Hamilton, LLC

Cherrytree II LLC

CL Ventures, LLC

Coco Palm 82, LLC

Colonial Heritage LLC

Concord Station, LLP

Coto de Caza, Ltd., Limited Partnership

Coventry L.L.C.

CPFE, LLC

CP Red Oak Management, LLC

CP Red Oak Partners, Ltd.

Creekside Crossing, L.L.C.

Danville Tassajara Partners, LLC

Darcy-Joliet, LLC

DBJ Holdings, LLC

DTC Holdings of Florida, LLC

Estates Seven, LLC

Evergreen Village LLC

EV, LLC

F&R Florida Homes, LLC

F&R QVI Home Investments USA, LLC

FLORDADE LLC

Fox-Maple Associates, LLC

F-2

Friendswood Development Company, LLC

Garco Investments, LLC

Greentree Holdings, LLC

Greystone Construction, Inc.

Greystone Homes of Nevada, Inc.

Greystone Homes, Inc.

Greystone Nevada, LLC

Greywall Club L.L.C.

Hammocks Lennar, LLC

Harveston, LLC

Haverford Venture L.L.C.

Haverton L.L.C.

HCC Investors, LLC

Heathcote Commons LLC

Heritage of Auburn Hills, L.L.C.

Hewitts Landing Trustee, LLC

Home Buyer's Advantage Realty, Inc.

Homecraft Corporation

HTC Golf Club, LLC

Inactive Companies, LLC

Independence L.L.C.

Isles at Bayshore Club, LLC

Lakelands at Easton, L.L.C.

Lakeside Farm, LLC

Largo Park Multifamily Developer, LLC

F-3

LCD Asante, LLC

Legends Club, LLC

Legends Golf Club, LLC

LEN - Belle Meade, LLC

LEN – CG South, LLC

LEN - Palm Vista, LLC

LEN Paradise Cable, LLC

LEN Paradise Operating, LLC

Len Paradise, LLC

Lencraft, LLC

LENH I, LLC

Len-Hawks Point, LLC

Lennar - BVHP, LLC

Lennar Aircraft I, LLC

Lennar Arizona Construction, Inc.

Lennar Arizona, Inc.

Lennar Associates Management Holding Company

Lennar Associates Management, LLC

Lennar Avenue One, LLC

Lennar Bridges, LLC

Lennar Buffington Colorado Crossing, L.P.

Lennar Buffington Zachary Scott, L.P.

Lennar Carolinas, LLC

Lennar Central Park, LLC

Lennar Central Region Sweep, Inc.

F-4

Lennar Central Texas, L.P.

Lennar Chicago, Inc.

Lennar Cobra, LLC

Lennar Colorado, LLC

Lennar Colorado Minerals LLC

Lennar Communities Development, Inc.

Lennar Communities Nevada, LLC

Lennar Communities of Chicago L.L.C.

Lennar Communities, Inc.

Lennar Construction, Inc.

Lennar Coto Holdings, L.L.C.

Lennar Developers, Inc.

Lennar Distressed Investments, LLC

Lennar Family of Builders GP, Inc.

Lennar Family of Builders Limited Partnership

Lennar Fresno, Inc.

Lennar Gardens, LLC

Lennar Georgia, Inc.

Lennar Greer Ranch Venture, LLC

Lennar Heritage Fields, LLC

Lennar Hingham Holdings, LLC

Lennar Hingham JV, LLC

Lennar Homes Holding, LLC

Lennar Homes NJ, LLC

Lennar Homes of Arizona, Inc.

F-5

Lennar Homes of California, Inc.

Lennar Homes of Texas Land and Construction, Ltd.

Lennar Homes of Texas Sales and Marketing, Ltd.

Lennar Homes, LLC

Lennar Illinois Trading Company, LLC

Lennar Imperial Holdings Limited Partnership

Lennar International Holding, LLC

Lennar International, LLC

Lennar Land Partners Sub II, Inc.

Lennar Land Partners Sub, Inc.

Lennar Layton, LLC

Lennar Long Beach Promenade Partners, LLC

Lennar Lytle, LLC

Lennar Mare Island, LLC

Lennar Marina A Funding, LLC

Lennar Massachusetts Properties, Inc.

Lennar Middletown, LLC

Lennar Multifamily Investors, LLC

Lennar New Jersey Properties, Inc.

Lennar New York, LLC

Lennar Northeast Properties LLC

Lennar Northeast Properties, Inc.

Lennar Northwest, Inc.

Lennar Pacific Properties Management, Inc.

Lennar Pacific Properties, Inc.

F-6

Lennar Pacific, Inc.

Lennar PI Acquisition, LLC

Lennar PI Property Acquisition, LLC

Lennar PIS Management Company, LLC

Lennar PNW, Inc.

Lennar Point, LLC

Lennar Port Imperial South, LLC

Lennar Realty, Inc.

Lennar Renaissance, Inc.

Lennar Reno, LLC

Lennar Riverside West Urban Renewal Company, L.L.C.

Lennar Riverside West, LLC

Lennar Sacramento, Inc.

Lennar Sales Corp.

Lennar San Jose Holdings, Inc.

Lennar/Shadeland, LLC

Lennar Southland I, Inc.

Lennar Southwest Holding Corp.

Lennar Spencer's Crossing, LLC

Lennar Texas Holding Company

Lennar Trading Company, LP

Lennar Ventures, LLC

Lennar West Valley, LLC

Lennar.com Inc.

Lennar/LNR Camino Palomar, LLC

F-7

Lennar-Lantana Boatyard, Inc.

LEN-Ryan 1, LLC

Len-Verandahs, LLP

LFS Holding Company, LLC

LH Eastwind, LLC

LH-EH Layton Lakes Estates, LLC

LHI Renaissance, LLC

LMI Fullerton, LLC

LMI Glencoe Dallas, LLC

LMI Las Colinas Station, LLC

LMI Naperville, LLC

LMI Naperville Investor, LLC

LMI Park Central, LLC

LMI Pearl Apartment Homes, LLC

LMICS, LLC

LMI-Contractors, LLC

LMI-Jacksonville Investor, LLC

LMI-JC Developer, LLC

LMI-JC, LLC

LMI-South Kings Development, LLC

LMI-West Seattle, LLC

LNC at Meadowbrook, LLC

LNC at Ravenna, LLC

LNC Communities I, Inc.

LNC Communities II, LLC

F-8

LNC Communities III, Inc.

LNC Communities IV, LLC

LNC Communities IX, LLC

LNC Communities V, LLC

LNC Communities VI, LLC

LNC Communities VII, LLC

LNC Communities VIII, LLC

LNC Northeast Mortgage, Inc.

LNC Pennsylvania Realty, Inc.

Long Beach Development, LLC

Lori Gardens Associates II, LLC

Lori Gardens Associates III, LLC

Lori Gardens Associates, L.L.C.

Lorton Station, LLC

LW D'Andrea, LLC

Madrona Ridge L.L.C.

Madrona Village L.L.C.

Madrona Village Mews L.L.C.

Majestic Woods, LLC

Marble Mountain Partners, LLC

Mid-County Utilities, Inc.

Mission Viejo 12S Venture, LP

Mission Viejo Holdings, Inc.

Moffett Meadows Partners, LLC

NC Properties I, LLC

F-9

NC Properties II, LLC

Northbridge L.L.C.

Northeastern Properties LP, Inc.

OHC/Ascot Belle Meade, LLC

One SR, L.P.

Palm Gardens At Doral Clubhouse, LLC

Palm Gardens at Doral, LLC

Palm Vista Preserve, LLC

PD-Len Boca Raton, LLC

PD-Len Delray, LLC

PG Properties Holding, LLC

Pioneer Meadows Development, LLC

Pioneer Meadows Investments, LLC

POMAC, LLC

Prestonfield L.L.C.

Providence Lakes, LLP

PT Metro, LLC

Raintree Village II L.L.C.

Raintree Village, L.L.C.

Renaissance Joint Venture

Reserve @ Pleasant Grove II LLC

Reserve @ Pleasant Grove LLC

Reserve at River Park, LLC

Reserve at South Harrison, LLC

Rivendell Joint Venture

F-10

Rivenhome Corporation

RMV, LLC

Rutenberg Homes of Texas, Inc.

Rutenberg Homes, Inc. (Florida)

Rye Hill Company, LLC

R-Ranch Development, LLC

R-Ranch Orlando Lender, LLC

S. Florida Construction II, LLC

S. Florida Construction III, LLC

S. Florida Construction, LLC

San Lucia, LLC

Santa Ana Transit Village, LLC

Savannah Development, Ltd.

Savell Gulley Development, LLC

Scarsdale, LTD.

Schulz Ranch Developers, LLC

Seminole/70th, LLC

Siena at Old Orchard, LLC

South Development, LLC

Southbank Holding, LLC

Spanish Springs Development, LLC

St. Charles Active Adult Community, LLC

Stoney Corporation

Stoney Holdings, LLC

Stoneybrook Clubhouse, Inc.

F-11

Stoneybrook Joint Venture

Strategic Cable Technologies, L.P.

Strategic Holdings, Inc. d/b/a Lennar Communications Ventures (LCV)

Strategic Technologies, LLC

Summerfield Venture L.L.C.

Summerwood, LLC

SunStreet Energy Group, LLC

TCO QVI, LLC

Temecula Valley, LLC

Terra Division, LLC

The Baywinds Land Trust

The Bridges at Rancho Santa Fe Sales Company, Inc.

The Bridges Club at Rancho Santa Fe, Inc.

The LNC Northeast Group, Inc.

The Preserve at Coconut Creek, LLC

Treviso Holding, LLC

Tustin Villas Partners, LLC

Tustin Vistas Partners, LLC

U.S. Home Corporation

U.S. Home of Arizona Construction Co.

U.S. Home Realty, Inc.

U.S.H. Los Prados, Inc.

U.S.H. Realty, Inc.

USH - Flag, LLC

USH (West Lake), Inc.

F-12

USH Equity Corporation

USH LEE, LLC

USH Woodbridge, Inc.

UST Lennar GP PIS 10, LLC

UST Lennar GP PIS 7, LLC

Valencia at Doral, LLC

Vineyard Point 2009, LLC

WCP, LLC

West Chocolate Bayou Development, LLC

West Lake Village, LLC

West Seattle Project X, LLC

West Van Buren L.L.C.

Westchase, Inc.

Willowbrook Investors, LLC

Woodbridge Multifamily Developer I, LLC

Wright Farm, L.L.C.

F-13

EX-31.1

Exhibit 31.1

Chief Executive Officer's Certification

I, Stuart A. Miller, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Lennar Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: April 9, 2013	/s/ Stuart A. Miller
	Name:	Stuart A. Miller
	Title:	Chief Executive Officer

EX-31.2

Exhibit 31.2

Chief Financial Officer’s Certification

I, Bruce E. Gross, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Lennar Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: April 9, 2013	/s/ Bruce E. Gross
	Name:	Bruce E. Gross
	Title:	Vice President and Chief Financial Officer

EX-32

Exhibit 32

Officers' Section 1350 Certifications

Each of the undersigned officers of Lennar Corporation, a Delaware corporation (the “Company”), hereby certifies that (i) the Company's Quarterly Report on Form 10-Q for the period ended February 28, 2013 fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 and (ii) the information contained in the Company's Quarterly Report on Form 10-Q for the period ended February 28, 2013 fairly presents, in all material respects, the financial condition and results of operations of the Company, at and for the periods indicated.

Date: April 9, 2013	/s/ Stuart A. Miller
	Name:	Stuart A. Miller
	Title:	Chief Executive Officer
Date: April 9, 2013	/s/ Bruce E. Gross
	Name:	Bruce E. Gross
	Title:	Vice President and Chief Financial Officer

XML

Lennar Homebuilding Investments In Unconsolidated Entities (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Feb. 28, 2013	Feb. 29, 2012	Aug. 31, 2012	Aug. 31, 2011	Feb. 28, 2013 Morgan Stanley & Co., Inc. [Member]	Nov. 30, 2012 Morgan Stanley & Co., Inc. [Member]	Feb. 28, 2013 Lennar Homebuilding [Member]		Nov. 30, 2012 Lennar Homebuilding [Member]
Schedule of Equity Method Investments [Line Items]
Investments in unconsolidated entities							$ 577,342	[1]	$ 565,360	[1]
Underlying equity in unconsolidated partners' net assets							690,600		681,600
Ownership interest					20.00%
Voting rights percentage					50.00%
Inventories					255,800	264,900	2,802,210		2,792,064
Reduction of maximum recourse exposure related to indebtedness of unconsolidated entities	10,900
Other loan paydowns	0	3,400
Payments under completion guarantees	$ 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 February 28, 2013, total assets include $1,837.4 million related to consolidated VIEs of which $15.9 million is included in Lennar Homebuilding cash and cash equivalents, $6.0 million in Lennar Homebuilding receivables, net, $65.6 million in Lennar Homebuilding finished homes and construction in progress, $485.6 million in Lennar Homebuilding land and land under development, $65.9 million in Lennar Homebuilding consolidated inventory not owned, $44.5 million in Lennar Homebuilding investments in unconsolidated entities, $223.2 million in Lennar Homebuilding other assets, $63.3 million in Rialto Investments cash and cash equivalents, $4.7 million in Rialto Investments defeasance cash to retire notes payable, $318.5 million in Rialto Investments loans receivable, net, $115.3 million in Rialto Investments real estate owned, held-for-sale, $422.8 million in Rialto Investments real estate owned, held-and-used, net $0.6 million in Rialto Investments in unconsolidated entities and $5.5 million in Rialto Investments other assets.As of November 30, 2012, total assets include $2,128.6 million related to consolidated VIEs of which $13.2 million is included in Lennar Homebuilding cash and cash equivalents, $6.0 million in Lennar Homebuilding receivables, net, $57.4 million in Lennar Homebuilding finished homes and construction in progress, $482.6 million in Lennar Homebuilding land and land under development, $65.2 million in Lennar Homebuilding consolidated inventory not owned, $43.7 million in Lennar Homebuilding investments in unconsolidated entities, $224.1 million in Lennar Homebuilding other assets, $104.8 million in Rialto Investments cash and cash equivalents, $223.8 million in Rialto Investments defeasance cash to retire notes payable, $350.2 million in Rialto Investments loans receivable, net, $94.2 million in Rialto Investments real estate owned, held-for-sale, $454.9 million in Rialto Investments real estate owned, held-and-used, net, $0.7 million in Rialto Investments in unconsolidated entities and $7.8 million in Rialto Investments other assets.

XML

Rialto Investments Segment (Operating Earnings Related To Rialto Segment) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Feb. 28, 2013		Feb. 29, 2012
Segment Reporting Information [Line Items]
Operating earnings (loss)	$ 84,591		$ 33,295
Noncontrolling interest income (loss)	(534)	[1]	(6,991)	[1]
Rialto Investments [Member]
Segment Reporting Information [Line Items]
Rialto Investments, Revenues	25,622		32,208
Rialto Investments, Cost and expenses	31,771		33,370
Rialto Investments equity in earnings (loss) from unconsolidated entities	6,173		18,458
Rialto Investments other income (expense), net	1,327		(12,240)
Operating earnings (loss)	1,351	[2]	5,056	[2]
Noncontrolling interest income (loss)	$ (300)		$ (4,300)

[1] Net loss attributable to noncontrolling interests for the three months ended February 28, 2013 and February 29, 2012 includes ($0.3) million and ($4.3) million, respectively, related to the FDIC’s interest in the portfolio of real estate loans that the Company acquired in partnership with the FDIC.

[2] (1)Operating earnings for the three months ended February 28, 2013 and February 29, 2012 include net loss attributable to noncontrolling interests of ($0.3) million and ($4.3) million, respectively.

XML

Earnings Per Share (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		1 Months Ended		1 Months Ended
	Feb. 28, 2013	Feb. 29, 2012	May 31, 2010 2.00% Convertible Senior Notes Due 2020 [Member]	Feb. 28, 2013 2.00% Convertible Senior Notes Due 2020 [Member]	Nov. 30, 2011 3.25% Convertible Senior Notes Due 2021 [Member]	Feb. 28, 2013 3.25% Convertible Senior Notes Due 2021 [Member]
Earnings Per Share [Line Items]
Net earnings attributable to Lennar	$ 57,492	$ 14,968
Less: distributed earnings allocated to nonvested shares	102	115
Less: undistributed earnings allocated to nonvested shares	664	113
Numerator for basic earnings per share	56,726	14,740
Plus: interest on 2.00% convertible senior notes due 2020 and 3.25% convertible senior notes due 2021	2,826	2,911
Plus: undistributed earnings allocated to convertible shares	662	113
Less: undistributed earnings reallocated to convertible shares	588	137
Numerator for diluted earnings per share	$ 59,626	$ 17,627
Denominator for basic earnings per share-weighted average common shares outstanding	189,548	185,997
Shared based payments	573	883
2.00% convertible senior notes due 2020 and 3.25% convertible senior notes due 2021	35,896	26,933
Denominator for diluted earnings per share-weighted average common shares outstanding	226,017	213,813
Basic earnings per share	$ 0.30	$ 0.08
Diluted earnings per share	$ 0.26	$ 0.08
Interest rate			2.00%	2.00%	3.25%	3.25%
Senior notes maturity year			2020		2021
Options to purchase outstanding and anti-dilutive shares	0	300

XML

Financial Instruments (Fair Value Measured On Recurring Basis) (Details) (USD $) In Thousands, unless otherwise specified	Feb. 28, 2013		Nov. 30, 2012
Financial Instruments [Line Items]
Aggregate principal balance of loans held-for-sale	$ 322,250		$ 479,130
Fair Value, Option, Aggregate Differences, Loans held-for-sale	12,400		23,200
Lennar Financial Services [Member] | Fair Value, Inputs, Level 2 [Member]
Financial Instruments [Line Items]
Loans Held-for-sale, Fair Value Disclosure	334,658		502,318
Lennar Financial Services [Member] | Loans Held-For-Sale [Member] | Fair Value, Inputs, Level 2 [Member]
Financial Instruments [Line Items]
Loans Held-for-sale, Fair Value Disclosure	334,658	[1]	502,318	[1]
Lennar Financial Services [Member] | Mortgage Loan Commitments [Member] | Fair Value, Inputs, Level 2 [Member]
Financial Instruments [Line Items]
Mortgage Loan Commitments	12,008		12,713
Lennar Financial Services [Member] | Forward Contracts [Member] | Fair Value, Inputs, Level 2 [Member]
Financial Instruments [Line Items]
Other Liabilities, Fair Value Disclosure	(2,128)		(2,570)
Lennar Homebuilding [Member] | Investments Available For Sale [Member] | Fair Value, Inputs, Level 3 [Member]
Financial Instruments [Line Items]
Investments available-for-sale	$ 31,818		$ 19,591

[1] The aggregate fair value of loans held-for-sale of $334.7 million at February 28, 2013 exceeds their aggregate principal balance of $322.3 million by $12.4 million. The aggregate fair value of loans held-for-sale of $502.3 million at November 30, 2012 exceeds their aggregate principal balance of $479.1 million by $23.2 million.

XML

Rialto Investments Segment Rialto Investments Segment (Other Income Expense) (Details) (Rialto Investments [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended
	Feb. 28, 2013	Feb. 29, 2012
Rialto Investments [Member]
Component of Operating Other Cost and Expense [Line Items]
Gains from sales of REO	$ 8,671	$ 42
Net Gains (Losses) Impairments on REO	670	1,952
Real Estate owned, expenses	(12,556)	(18,074)
Rental Income, Nonoperating	4,542	3,840
Other Nonoperating Income (Expense)	$ 1,327	$ (12,240)

XML

Supplemental Financial Information (Condensed Consolidating Balance Sheet) (Details) (USD $) In Thousands, unless otherwise specified	Feb. 28, 2013		Nov. 30, 2012		Feb. 29, 2012	Nov. 30, 2011
Condensed Financial Statements, Captions [Line Items]
Total assets	$ 10,432,269	[1]	$ 10,362,206	[1]
Senior notes and other debts payable	4,505,662		4,005,051
Total liabilities	6,362,629	[2]	6,360,998	[2]
Stockholders' equity	3,495,881	[2]	3,414,764	[2]
Noncontrolling interests	573,759	[2]	586,444	[2]
Total equity	4,069,640	[2]	4,001,208	[2]	3,323,253	3,303,525
Total liabilities and equity	10,432,269	[2]	10,362,206	[2]
Lennar Corporation [Member]
Condensed Financial Statements, Captions [Line Items]
Total assets	7,730,162		4,505,795
Total liabilities	4,234,281		1,091,031
Stockholders' equity	3,495,881		3,414,764
Total equity	3,495,881		3,414,764
Total liabilities and equity	7,730,162		4,505,795
Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Total assets	7,408,048		6,805,912
Total liabilities	3,899,683		3,317,858
Stockholders' equity	3,508,365		3,488,054
Total equity	3,508,365		3,488,054
Total liabilities and equity	7,408,048		6,805,912
Non-Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Total assets	2,857,132		3,308,672
Total liabilities	1,486,448		1,952,109
Stockholders' equity	796,925		770,119
Noncontrolling interests	573,759		586,444
Total equity	1,370,684		1,356,563
Total liabilities and equity	2,857,132		3,308,672
Eliminations [Member]
Condensed Financial Statements, Captions [Line Items]
Total assets	(7,563,073)		(4,258,173)
Total liabilities	(3,257,783)
Stockholders' equity	(4,305,290)		(4,258,173)
Total equity	(4,305,290)		(4,258,173)
Total liabilities and equity	(7,563,073)		(4,258,173)
Lennar Homebuilding [Member]
Condensed Financial Statements, Captions [Line Items]
Cash and cash equivalents, restricted cash and receivables, net	1,178,988		1,208,708
Inventories	5,611,976	[1]	5,071,713	[1]
Investments in unconsolidated entities	577,342	[1]	565,360	[1]
Other assets	973,565	[1]	956,070	[1]
Investments in subsidiaries
Total assets	8,341,871	[1]	7,801,851	[1]
Accounts payable and other liabilities	830,449		856,214
Liabilities related to consolidated inventory not owned	266,803	[2]	268,159	[2]
Senior notes and other debts payable	4,505,662	[2]	4,005,051	[2]
Intercompany
Total liabilities	5,602,914	[2]	5,129,424	[2]
Lennar Homebuilding [Member] | Lennar Corporation [Member]
Condensed Financial Statements, Captions [Line Items]
Cash and cash equivalents, restricted cash and receivables, net	934,338		962,116
Other assets	51,269		55,625
Investments in subsidiaries	3,508,365		3,488,054
Total assets	7,730,162		4,505,795
Accounts payable and other liabilities	250,194		279,926
Senior notes and other debts payable	3,984,087		3,533,463
Intercompany			(2,722,358)
Total liabilities	4,234,281		1,091,031
Lennar Homebuilding [Member] | Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Cash and cash equivalents, restricted cash and receivables, net	222,307		226,047
Inventories	5,061,731		4,532,755
Investments in unconsolidated entities	532,882		521,662
Other assets	721,073		677,692
Investments in subsidiaries	796,925		770,119
Total assets	7,334,918		6,728,275
Accounts payable and other liabilities	566,996		533,882
Liabilities related to consolidated inventory not owned	266,803		268,159
Senior notes and other debts payable	286,081		245,665
Intercompany	2,751,152		2,239,096
Total liabilities	3,871,032		3,286,802
Lennar Homebuilding [Member] | Non-Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Cash and cash equivalents, restricted cash and receivables, net	22,343		20,545
Inventories	550,245		538,958
Investments in unconsolidated entities	44,460		43,698
Other assets	222,816		222,753
Total assets	839,864		825,954
Accounts payable and other liabilities	34,852		42,406
Senior notes and other debts payable	235,494		225,923
Intercompany	485,038		483,262
Total liabilities	755,384		751,591
Lennar Homebuilding [Member] | Eliminations [Member]
Condensed Financial Statements, Captions [Line Items]
Other assets	(21,593)		0
Investments in subsidiaries	(4,305,290)		(4,258,173)
Total assets	(7,563,073)		(4,258,173)
Accounts payable and other liabilities	(21,593)		0
Intercompany	(3,236,190)
Total liabilities	(3,257,783)
Rialto Investments [Member]
Condensed Financial Statements, Captions [Line Items]
Investments in unconsolidated entities	106,609	[1]	108,140	[1]
Other assets	34,623	[1]	38,379	[1]
Total assets	1,342,233	[1],[3]	1,647,360	[1],[3]
Senior notes and other debts payable	270,357	[2]	574,480	[2]
Total liabilities	285,166	[2]	600,602	[2]
Rialto Investments [Member] | Non-Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Total assets	1,342,233		1,647,360
Total liabilities	285,166		600,602
Lennar Financial Services [Member]
Condensed Financial Statements, Captions [Line Items]
Other assets	43,776	[4]	44,957	[4]
Total assets	748,165	[1]	912,995	[1]
Total liabilities	474,549	[2]	630,972	[2]
Lennar Financial Services [Member] | Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Total assets	73,130		77,637
Total liabilities	28,651		31,056
Lennar Financial Services [Member] | Non-Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Total assets	675,035		835,358
Total liabilities	$ 445,898		$ 599,916

[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 February 28, 2013, total assets include $1,837.4 million related to consolidated VIEs of which $15.9 million is included in Lennar Homebuilding cash and cash equivalents, $6.0 million in Lennar Homebuilding receivables, net, $65.6 million in Lennar Homebuilding finished homes and construction in progress, $485.6 million in Lennar Homebuilding land and land under development, $65.9 million in Lennar Homebuilding consolidated inventory not owned, $44.5 million in Lennar Homebuilding investments in unconsolidated entities, $223.2 million in Lennar Homebuilding other assets, $63.3 million in Rialto Investments cash and cash equivalents, $4.7 million in Rialto Investments defeasance cash to retire notes payable, $318.5 million in Rialto Investments loans receivable, net, $115.3 million in Rialto Investments real estate owned, held-for-sale, $422.8 million in Rialto Investments real estate owned, held-and-used, net $0.6 million in Rialto Investments in unconsolidated entities and $5.5 million in Rialto Investments other assets.As of November 30, 2012, total assets include $2,128.6 million related to consolidated VIEs of which $13.2 million is included in Lennar Homebuilding cash and cash equivalents, $6.0 million in Lennar Homebuilding receivables, net, $57.4 million in Lennar Homebuilding finished homes and construction in progress, $482.6 million in Lennar Homebuilding land and land under development, $65.2 million in Lennar Homebuilding consolidated inventory not owned, $43.7 million in Lennar Homebuilding investments in unconsolidated entities, $224.1 million in Lennar Homebuilding other assets, $104.8 million in Rialto Investments cash and cash equivalents, $223.8 million in Rialto Investments defeasance cash to retire notes payable, $350.2 million in Rialto Investments loans receivable, net, $94.2 million in Rialto Investments real estate owned, held-for-sale, $454.9 million in Rialto Investments real estate owned, held-and-used, net, $0.7 million in Rialto Investments in unconsolidated entities and $7.8 million in Rialto Investments other assets.

[2] As of February 28, 2013, total liabilities include $435.3 million related to consolidated VIEs as to which there was no recourse against the Company, of which $10.1 million is included in Lennar Homebuilding accounts payable, $35.8 million in Lennar Homebuilding liabilities related to consolidated inventory not owned, $186.7 million in Lennar Homebuilding senior notes and other debts payable, $14.5 million in Lennar Homebuilding other liabilities and $188.2 million in Rialto Investments notes payable and other liabilities.As of November 30, 2012, total liabilities include $737.2 million related to consolidated VIEs as to which there was no recourse against the Company, of which $10.6 million is included in Lennar Homebuilding accounts payable, $35.9 million in Lennar Homebuilding liabilities related to consolidated inventory not owned, $181.6 million in Lennar Homebuilding senior notes and other debts payable, $15.7 million in Lennar Homebuilding other liabilities and $493.4 million in Rialto Investments notes payable and other liabilities.

[3] Consists primarily of assets of consolidated VIEs (see Note 8).

[4] Other assets include mortgage loan commitments carried at fair value of $12.0 million and $12.7 million as of February 28, 2013 and November 30, 2012

XML

Stockholders' Equity (Schedule Of Changes In Equity) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Feb. 28, 2013		Feb. 29, 2012
Balance, beginning	$ 4,001,208	[1]	$ 3,303,525
Net earnings (including net earnings (loss) attributable to noncontrolling interests)	56,958		7,977
Employee stock and directors plans	21,668		11,646
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation	3,164		0
Restricted Stock or Unit Expense	6,486		7,276
Dividends	(7,693)		(7,562)
Receipts related to noncontrolling interests	434		391
Payments related to noncontrolling interests	(12,585)		0
Balance, ending	4,069,640	[1]	3,323,253
Additional Paid-in Capital [Member]
Balance, beginning	2,421,941		2,341,079
Net earnings (including net earnings (loss) attributable to noncontrolling interests)
Employee stock and directors plans	4,487		6,078
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation	3,164
Restricted Stock or Unit Expense	6,486		7,276
Dividends
Receipts related to noncontrolling interests
Payments related to noncontrolling interests
Balance, ending	2,436,078		2,354,433
Treasury Stock [Member]
Balance, beginning	(632,846)		(621,220)
Net earnings (including net earnings (loss) attributable to noncontrolling interests)
Employee stock and directors plans	17,148		5,522
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation
Restricted Stock or Unit Expense
Dividends
Receipts related to noncontrolling interests
Payments related to noncontrolling interests
Balance, ending	(615,698)		(615,698)
Retained Earnings [Member]
Balance, beginning	1,605,131		956,401
Net earnings (including net earnings (loss) attributable to noncontrolling interests)	57,492		14,968
Employee stock and directors plans
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation
Restricted Stock or Unit Expense
Dividends	(7,693)		(7,562)
Receipts related to noncontrolling interests
Payments related to noncontrolling interests
Balance, ending	1,654,930		963,807
Noncontrolling Interests [Member]
Balance, beginning	586,444		607,057
Net earnings (including net earnings (loss) attributable to noncontrolling interests)	(534)		(6,991)
Employee stock and directors plans
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation
Restricted Stock or Unit Expense
Dividends
Receipts related to noncontrolling interests	434		391
Payments related to noncontrolling interests	(12,585)
Balance, ending	573,759		600,457
Class A Common Stock [Member]
Balance, beginning	17,240		16,910
Net earnings (including net earnings (loss) attributable to noncontrolling interests)
Employee stock and directors plans	33		46
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation
Restricted Stock or Unit Expense
Dividends
Receipts related to noncontrolling interests
Payments related to noncontrolling interests
Balance, ending	17,273		16,956
Class B Common Stock [Member]
Balance, beginning	3,298		3,298
Net earnings (including net earnings (loss) attributable to noncontrolling interests)
Employee stock and directors plans
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation
Restricted Stock or Unit Expense
Dividends
Receipts related to noncontrolling interests
Payments related to noncontrolling interests
Balance, ending	$ 3,298		$ 3,298

[1] As of February 28, 2013, total liabilities include $435.3 million related to consolidated VIEs as to which there was no recourse against the Company, of which $10.1 million is included in Lennar Homebuilding accounts payable, $35.8 million in Lennar Homebuilding liabilities related to consolidated inventory not owned, $186.7 million in Lennar Homebuilding senior notes and other debts payable, $14.5 million in Lennar Homebuilding other liabilities and $188.2 million in Rialto Investments notes payable and other liabilities.As of November 30, 2012, total liabilities include $737.2 million related to consolidated VIEs as to which there was no recourse against the Company, of which $10.6 million is included in Lennar Homebuilding accounts payable, $35.9 million in Lennar Homebuilding liabilities related to consolidated inventory not owned, $181.6 million in Lennar Homebuilding senior notes and other debts payable, $15.7 million in Lennar Homebuilding other liabilities and $493.4 million in Rialto Investments notes payable and other liabilities.

XML

Financial Instruments (Tables)

3 Months Ended

Feb. 28, 2013

Fair Value Disclosures [Abstract]

Carrying Amounts And Estimated Fair Value Of Financial Instruments

		February 28, 2013			November 30, 2012
	Fair Value	Carrying		Fair	Carrying	Fair
(In thousands)	Hierarchy	Amount		Value	Amount	Value
ASSETS
Rialto Investments:
Loans receivable, net	Level 3	$	406,207	426,366	436,535	450,281
Investments held-to-maturity	Level 3	$	15,262	15,159	15,012	14,904
Lennar Financial Services:
Loans held-for-investment, net	Level 3	$	23,593	25,274	23,982	24,949
Investments held-to-maturity	Level 2	$	62,746	62,796	63,924	63,877
LIABILITIES
Lennar Homebuilding:
Senior notes and other debts payable	Level 2	$	4,505,662	5,545,976	4,005,051	5,035,670
Rialto Investments:
Notes payable	Level 2	$	270,357	264,484	574,480	568,702
Lennar Financial Services:
Notes and other debts payable	Level 2	$	311,933	311,933	457,994	457,994

Fair Value Measured On Recurring Basis

The Company’s financial instruments measured at fair value on a recurring basis are summarized below:

Financial Instruments	Fair Value Hierarchy	Fair Value at February 28, 2013			Fair Value at November 30, 2012
(In thousands)
Lennar Financial Services:
Loans held-for-sale (1)	Level 2	$	334,658		502,318
Mortgage loan commitments	Level 2	$	12,008		12,713
Forward contracts	Level 2	$	(2,128	)	(2,570	)
Lennar Homebuilding:
Investments available-for-sale	Level 3	$	31,818		19,591

(1) The aggregate fair value of loans held-for-sale of $334.7 million at February 28, 2013 exceeds their aggregate principal balance of $322.3 million by $12.4 million. The aggregate fair value of loans held-for-sale of $502.3 million at November 30, 2012 exceeds their aggregate principal balance of $479.1 million by $23.2 million.

Schedule Of Gains And Losses Of Financial Instruments

The changes in fair values that are included in operating earnings are shown, by financial instrument and financial statement line item below:

	Three Months Ended
	February 28,			February 29,
(In thousands)	2013			2012
Changes in fair value included in Lennar Financial Services revenues:
Loans held-for-sale	$	(10,780	)	(1,307	)
Mortgage loan commitments	$	(705	)	1,442
Forward contracts	$	442		735

Reconciliation Of Beginning And Ending Balance For The Company's Level 3 Recurring Fair Value Measurements

The following table represents a reconciliation of the beginning and ending balance for the Company’s Level 3 recurring fair value measurements (investments available-for-sale) included in the Lennar Homebuilding segment’s other assets:

	Three Months Ended
(In thousands)	February 28, 2013		February 29, 2012
Investments available-for-sale, beginning of period	$	19,591	42,892
Purchases and other (1)	12,227		14,928
Sales	—		(6,436	)
Settlements (2)	—		(33,148	)
Investments available-for-sale, end of period	$	31,818	18,236

(1) Represents investments in community development district bonds that mature at various dates between 2022 and 2042.

(2) The investments available-for-sale that were settled during the three months ended February 29, 2012 related to investments in community development district bonds, which were in default by the borrower and regarding which the Company foreclosed on the underlying real estate collateral. Therefore, these investments were reclassified from other assets to land and land under development.

Fair Value Measurements, Nonrecurring [Table Text Block]

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 and Rialto Investments real estate owned assets. The fair value included in the tables below represent only those assets whose carrying value were adjusted to fair value during the respective periods disclosed. The assets measured at fair value on a nonrecurring basis are summarized below:

Non-financial assets	Fair Value Hierarchy	Fair Value Three Months Ended February 28, 2013		Total Gains (Losses) (1)
(In thousands)
Lennar Homebuilding:
Finished homes and construction in progress (2)	Level 3	$	2,941	(1,255	)
Rialto Investments:
REO - held-for-sale (3)	Level 3	$	8,447	(271	)
REO - held-and-used, net (4)	Level 3	$	18,211	941

(1) Represents total losses due to valuation adjustments, total gains from acquisitions of real estate through foreclosure and REO impairments recorded during the three months ended February 28, 2013.

(2) Finished homes and construction in progress with an aggregate carrying value of $4.2 million were written down to their fair value of $2.9 million, resulting in valuation adjustments of $1.3 million, which were included in Lennar Homebuilding costs and expenses in the Company’s statement of operations for the three months ended February 28, 2013.

(3) REO, held-for-sale, assets are initially recorded at fair value less estimated costs to sell at the time of acquisition through, or in lieu of, loan foreclosure. Upon acquisition, the REO, held-for-sale, had a carrying value of $0.2 million and a fair value of $0.6 million. The fair value of REO, held-for-sale, is based upon the appraised value at the time of foreclosure or management’s best estimate. The gains upon acquisition of REO, held-for-sale, were $0.4 million. As part of management’s periodic valuations of its REO, held-for-sale, during the three months ended February 28, 2013, REO, held-for-sale, with an aggregate value of $8.5 million were written down to their fair value of $7.8 million, resulting in impairments of $0.7 million. These gains and impairments are included within Rialto Investments other income (expense), net, in the Company’s statement of operations for the three months ended February 28, 2013.

(4) REO, held-and-used, net, assets are initially recorded at fair value at the time of acquisition through, or in lieu of, loan foreclosure. Upon acquisition, the REO, held-and-used, net, had a carrying value of $15.2 million and a fair value of $16.2 million. The fair value of REO, held-and-used, net, is based upon the appraised value at the time of foreclosure or management’s best estimate. The gains upon acquisition of REO, held-and-used, net, were $1.0 million. As part of management’s periodic valuations of its REO, held-and-used, net, during the three months ended February 28, 2013, REO, held-and-used, net, with an aggregate value of $2.1 million were written down to their fair value of $2.0 million, resulting in impairments of $0.1 million. These gains and impairments are included within Rialto Investments other income (expense), net, in the Company’s statement of operations for the three months ended February 28, 2013.

Non-financial assets	Fair Value Hierarchy	Fair Value Three Months Ended February 29, 2012		Total Gains (Losses) (1)
(In thousands)
Lennar Homebuilding:
Finished homes and construction in progress (2)	Level 3	$	1,548	(2,025	)
Rialto Investments:
REO - held-for-sale (3)	Level 3	$	11,423	(462	)
REO - held-and-used, net (4)	Level 3	$	54,289	2,414

(1) Represents total losses due to valuation adjustments, total gains from acquisitions of real estate through foreclosure and REO impairments recorded during the three months ended February 29, 2012.

(2) Finished homes and construction in progress with an aggregate carrying value of $3.5 million were written down to their fair value of $1.5 million, resulting in valuation adjustments of $2.0 million, which were included in Lennar Homebuilding costs and expenses in the Company’s statement of operations for the three months ended February 29, 2012.

(3) REO, held-for-sale, assets are initially recorded at fair value less estimated costs to sell at the time of acquisition through, or in lieu of, loan foreclosure. Upon acquisition, the REO, held-for-sale, had a carrying value of $0.3 million and a fair value of $1.1 million. The fair value of REO, held-for-sale, is based upon the appraised value at the time of foreclosure or management’s best estimate. The gains upon acquisition of REO, held-for-sale, were $0.8 million. As part of management's periodic valuations of its REO, held-for-sale, during the three months ended February 29, 2012, REO, held-for-sale, with an aggregate value of $11.5 million were written down to their fair value of $10.3 million, resulting in impairments of $1.2 million. These gains and impairments are included within Rialto Investments other income (expense), net in the Company's statement of operations for the three months ended February 29, 2012.

(4) REO, held-and-used, net, assets are initially recorded at fair value at the time of acquisition through, or in lieu of, loan foreclosure. Upon acquisition, the REO, held-and-used, net, had a carrying value of $41.2 million and a fair value of $46.2 million. The fair value of REO, held-and-used, net, is based upon the appraised value at the time of foreclosure or management’s best estimate. The gains upon acquisition of REO, held-and-used, net, were $5.0 million. As part of management's periodic valuations of its REO, held-and-used, net, during the three months ended February 29, 2012, REO, held-and-used, net, with an aggregate value of $10.6 million were written down to their fair value of $8.0 million, resulting in impairments of $2.6 million. These gains and impairments are included within the Rialto Investments other income (expense), net, in the Company’s statement of operations for the three months ended February 29, 2012.

Fair Value, Measurement Inputs, Disclosure [Table Text Block]

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 three months ended February 28, 2013:

Unobservable inputs	Range
Average selling price		$163,000	-	$279,000
Absorption rate per quarter (homes)	2		-	12
Discount rate	20%

XML

Supplemental Financial Information (Condensed Consolidating Statement Of Operations) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Feb. 28, 2013		Feb. 29, 2012
Condensed Financial Statements, Captions [Line Items]
Total revenues	$ 989,946	[1]	$ 724,856	[1]
Corporate general and administrative	31,270		26,842
Total costs and expenses	921,493		704,922
Other interest expense	(26,031)		(24,849)
Earnings (loss) before income taxes	53,321		6,453
Benefit for income taxes	3,637		1,524
Equity in earnings from subsidiaries
Net earnings (including net earnings (loss) attributable to noncontrolling interests)	56,958		7,977
Less: Net earnings (loss) attributable to noncontrolling interests	(534)	[2]	(6,991)	[2]
Net earnings attributable to Lennar	57,492		14,968
Lennar Corporation [Member]
Condensed Financial Statements, Captions [Line Items]
Total revenues
Corporate general and administrative	30,005		25,499
Total costs and expenses	30,005		25,499
Other interest expense	(1,421)		(1,437)
Earnings (loss) before income taxes	(31,198)		(27,013)
Benefit for income taxes	7,402		12,609
Equity in earnings from subsidiaries	81,288		29,372
Net earnings (including net earnings (loss) attributable to noncontrolling interests)	57,492		14,968
Less: Net earnings (loss) attributable to noncontrolling interests
Net earnings attributable to Lennar	57,492		14,968
Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Total revenues	904,520		658,578
Corporate general and administrative
Total costs and expenses	813,042		615,554
Other interest expense	(26,031)		(24,849)
Earnings (loss) before income taxes	68,213		23,374
Benefit for income taxes	2,950		(6,034)
Equity in earnings from subsidiaries	10,125		12,032
Net earnings (including net earnings (loss) attributable to noncontrolling interests)	81,288		29,372
Less: Net earnings (loss) attributable to noncontrolling interests
Net earnings attributable to Lennar	81,288		29,372
Non-Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Total revenues	90,632		70,595
Corporate general and administrative
Total costs and expenses	82,449		66,663
Other interest expense
Earnings (loss) before income taxes	16,306		10,092
Benefit for income taxes	(6,715)		(5,051)
Equity in earnings from subsidiaries
Net earnings (including net earnings (loss) attributable to noncontrolling interests)	9,591		5,041
Less: Net earnings (loss) attributable to noncontrolling interests	(534)		(6,991)
Net earnings attributable to Lennar	10,125		12,032
Eliminations [Member]
Condensed Financial Statements, Captions [Line Items]
Total revenues	(5,206)		(4,317)
Corporate general and administrative	1,265		1,343
Total costs and expenses	(4,003)		(2,794)
Other interest expense	1,421		1,437
Earnings (loss) before income taxes
Benefit for income taxes
Equity in earnings from subsidiaries	(91,413)		(41,404)
Net earnings (including net earnings (loss) attributable to noncontrolling interests)	(91,413)		(41,404)
Less: Net earnings (loss) attributable to noncontrolling interests
Net earnings attributable to Lennar	(91,413)		(41,404)
Lennar Homebuilding [Member]
Condensed Financial Statements, Captions [Line Items]
Real estate revenue	868,444		624,433
Lennar Homebuilding, Cost and expenses	778,674		584,745
Equity in earnings (loss) from unconsolidated entities	(867)		1,083
Other income (expense), net	4,266		4,067
Lennar Homebuilding [Member] | Lennar Corporation [Member]
Condensed Financial Statements, Captions [Line Items]
Real estate revenue
Lennar Homebuilding, Cost and expenses
Equity in earnings (loss) from unconsolidated entities
Other income (expense), net	228		(77)
Lennar Homebuilding [Member] | Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Real estate revenue	868,444		624,028
Lennar Homebuilding, Cost and expenses	776,024		580,510
Equity in earnings (loss) from unconsolidated entities	(1,490)		1,141
Other income (expense), net	4,256		4,058
Lennar Homebuilding [Member] | Non-Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Real estate revenue	0		405
Lennar Homebuilding, Cost and expenses	3,022		4,375
Equity in earnings (loss) from unconsolidated entities	623		(58)
Other income (expense), net
Lennar Homebuilding [Member] | Eliminations [Member]
Condensed Financial Statements, Captions [Line Items]
Real estate revenue
Lennar Homebuilding, Cost and expenses	(372)		(140)
Equity in earnings (loss) from unconsolidated entities
Other income (expense), net	(218)		86
Lennar Financial Services [Member]
Condensed Financial Statements, Captions [Line Items]
Financial Services Revenue	95,880		68,215
Lennar Financial Services, Cost and expenses	79,778		59,965
Lennar Financial Services [Member] | Lennar Corporation [Member]
Condensed Financial Statements, Captions [Line Items]
Financial Services Revenue
Lennar Financial Services, Cost and expenses
Lennar Financial Services [Member] | Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Financial Services Revenue	36,076		34,550
Lennar Financial Services, Cost and expenses	37,018		34,966
Lennar Financial Services [Member] | Non-Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Financial Services Revenue	65,010		37,982
Lennar Financial Services, Cost and expenses	47,656		28,918
Lennar Financial Services [Member] | Eliminations [Member]
Condensed Financial Statements, Captions [Line Items]
Financial Services Revenue	(5,206)		(4,317)
Lennar Financial Services, Cost and expenses	(4,896)		(3,919)
Rialto Investments [Member]
Condensed Financial Statements, Captions [Line Items]
Rialto Investments, Revenues	25,622		32,208
Rialto Investments, Cost and expenses	31,771		33,370
Equity in earnings (loss) from unconsolidated entities	6,173		18,458
Other income (expense), net	1,327		(12,240)
Less: Net earnings (loss) attributable to noncontrolling interests	(300)		(4,300)
Rialto Investments [Member] | Lennar Corporation [Member]
Condensed Financial Statements, Captions [Line Items]
Rialto Investments, Revenues
Rialto Investments, Cost and expenses
Equity in earnings (loss) from unconsolidated entities
Other income (expense), net
Rialto Investments [Member] | Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Rialto Investments, Revenues
Rialto Investments, Cost and expenses	0		78
Equity in earnings (loss) from unconsolidated entities
Other income (expense), net
Rialto Investments [Member] | Non-Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Rialto Investments, Revenues	25,622		32,208
Rialto Investments, Cost and expenses	31,771		33,370
Equity in earnings (loss) from unconsolidated entities	6,173		18,458
Other income (expense), net	1,327		(12,240)
Rialto Investments [Member] | Eliminations [Member]
Condensed Financial Statements, Captions [Line Items]
Rialto Investments, Revenues
Rialto Investments, Cost and expenses	0		(78)
Equity in earnings (loss) from unconsolidated entities
Other income (expense), net

[1] Total revenues are net of sales incentives of $74.0 million ($23,300 per home delivered) for the three months ended February 28, 2013, compared to $84.5 million ($34,200 per home delivered) for the three months ended February 29, 2012.

[2] Net loss attributable to noncontrolling interests for the three months ended February 28, 2013 and February 29, 2012 includes ($0.3) million and ($4.3) million, respectively, related to the FDIC’s interest in the portfolio of real estate loans that the Company acquired in partnership with the FDIC.

XML

Financial Instruments (Fair Value Assets Measured On Nonrecurring Basis) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Feb. 28, 2013		Feb. 29, 2012
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Gains (Losses) on Investments in unconsolidated entities	$ 0		$ (11)
Fair Value Inputs, Discount Rate	20.00%
Lennar Homebuilding [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Finished homes and construction in progress carrying value before impairments	44,749
Lennar Homebuilding [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Finished homes and construction in progress, Fair Value	2,941	[1]	1,548	[2]
Total Gains (Losses) on Finished homes and construction in process	(1,255)	[1],[3]	(2,025)	[2],[4]
Finished homes and construction in progress carrying value before impairments	4,196		3,500
Rialto Investments [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
REO Held For Sale Fair Value	8,447	[5]	11,423	[6]
REO held-for-sale carrying value before gains	200		300
REO held-for-sale fair value after gains	600		1,134
Gains (Losses) on REO held-for-sale	400		778
REO held-for-sale carrying value before impairments	8,500		11,529
REO held-for-sale fair value after impairments	7,800		10,289
REO held-for-sale, impairments	700		(1,240)
REO held-and-used carrying value before gains	15,200		41,200
REO held-and-used fair value after gains	16,200		46,241
Gains (Losses) on REO held-and-used	1,000		5,011
REO held-and-used carrying value before impairments	2,100		10,645
REO held-and-used fair value after impairments	2,000		8,048
Real Estate Held and Used, Impairments	100		(2,597)
Net Gains Losses Impairments On REO Held For Sale	(271)	[3],[5]	(462)	[4],[6]
REO Held And Used Fair Value	18,211	[7]	54,289	[8]
Net Gains (Losses) Impairments On REO Held And Used	$ 941	[3],[7]	$ 2,414	[4],[8]

[1] Finished homes and construction in progress with an aggregate carrying value of $4.2 million were written down to their fair value of $2.9 million, resulting in valuation adjustments of $1.3 million, which were included in Lennar Homebuilding costs and expenses in the Company’s statement of operations for the three months ended February 28, 2013.

[2] Finished homes and construction in progress with an aggregate carrying value of $3.5 million were written down to their fair value of $1.5 million, resulting in valuation adjustments of $2.0 million, which were included in Lennar Homebuilding costs and expenses in the Company’s statement of operations for the three months ended February 29, 2012

[3] Represents total losses due to valuation adjustments, total gains from acquisitions of real estate through foreclosure and REO impairments recorded during the three months ended February 28, 2013.

[4] Represents total losses due to valuation adjustments, total gains from acquisitions of real estate through foreclosure and REO impairments recorded during the three months ended February 29, 2012.

[5] REO, held-for-sale, assets are initially recorded at fair value less estimated costs to sell at the time of acquisition through, or in lieu of, loan foreclosure. Upon acquisition, the REO, held-for-sale, had a carrying value of $0.2 million and a fair value of $0.6 million. The fair value of REO, held-for-sale, is based upon the appraised value at the time of foreclosure or management’s best estimate. The gains upon acquisition of REO, held-for-sale, were $0.4 million. As part of management’s periodic valuations of its REO, held-for-sale, during the three months ended February 28, 2013, REO, held-for-sale, with an aggregate value of $8.5 million were written down to their fair value of $7.8 million, resulting in impairments of $0.7 million. These gains and impairments are included within Rialto Investments other income (expense), net, in the Company’s statement of operations for the three months ended February 28, 2013.

[6] REO, held-for-sale, assets are initially recorded at fair value less estimated costs to sell at the time of acquisition through, or in lieu of, loan foreclosure. Upon acquisition, the REO, held-for-sale, had a carrying value of $0.3 million and a fair value of $1.1 million. The fair value of REO, held-for-sale, is based upon the appraised value at the time of foreclosure or management’s best estimate. The gains upon acquisition of REO, held-for-sale, were $0.8 million. As part of management's periodic valuations of its REO, held-for-sale, during the three months ended February 29, 2012, REO, held-for-sale, with an aggregate value of $11.5 million were written down to their fair value of $10.3 million, resulting in impairments of $1.2 million. These gains and impairments are included within Rialto Investments other income (expense), net in the Company's statement of operations for the three months ended February 29, 2012.

[7] REO, held-and-used, net, assets are initially recorded at fair value at the time of acquisition through, or in lieu of, loan foreclosure. Upon acquisition, the REO, held-and-used, net, had a carrying value of $15.2 million and a fair value of $16.2 million. The fair value of REO, held-and-used, net, is based upon the appraised value at the time of foreclosure or management’s best estimate. The gains upon acquisition of REO, held-and-used, net, were $1.0 million. As part of management’s periodic valuations of its REO, held-and-used, net, during the three months ended February 28, 2013, REO, held-and-used, net, with an aggregate value of $2.1 million were written down to their fair value of $2.0 million, resulting in impairments of $0.1 million. These gains and impairments are included within Rialto Investments other income (expense), net, in the Company’s statement of operations for the three months ended February 28, 2013.

[8] REO, held-and-used, net, assets are initially recorded at fair value at the time of acquisition through, or in lieu of, loan foreclosure. Upon acquisition, the REO, held-and-used, net, had a carrying value of $41.2 million and a fair value of $46.2 million. The fair value of REO, held-and-used, net, is based upon the appraised value at the time of foreclosure or management’s best estimate. The gains upon acquisition of REO, held-and-used, net, were $5.0 million. As part of management's periodic valuations of its REO, held-and-used, net, during the three months ended February 29, 2012, REO, held-and-used, net, with an aggregate value of $10.6 million were written down to their fair value of $8.0 million, resulting in impairments of $2.6 million. These gains and impairments are included within the Rialto Investments other income (expense), net, in the Company’s statement of operations for the three months ended February 29, 2012.

XML

Rialto Investments Segment (Outstanding Balance And Carrying Value Of Loans) (Details) (Rialto Investments [Member], USD $) In Thousands, unless otherwise specified	Feb. 28, 2013	Nov. 30, 2012
Rialto Investments [Member]
Segment Reporting Information [Line Items]
Outstanding principal balance	$ 766,840	$ 812,187
Carrying value	$ 372,105	$ 396,200

XML

Consolidation Of Variable Interest Entities (Estimated Maximum Exposure To Loss) (Details) (USD $) In Thousands, unless otherwise specified	Feb. 28, 2013		Nov. 30, 2012
Lennar Homebuilding [Member]
Variable Interest Entity [Line Items]
Equity Method Investments	$ 577,342	[1]	$ 565,360	[1]
Rialto Investments [Member]
Variable Interest Entity [Line Items]
Equity Method Investments	106,609	[1]	108,140	[1]
Investments held-to-maturity	15,262	[1]	15,012	[1]
Lennar Financial Services [Member]
Variable Interest Entity [Line Items]
Investments held-to-maturity	62,746		63,924
Recourse Debt [Member] | Lennar Homebuilding [Member]
Variable Interest Entity [Line Items]
Lennar's Maximum Exposure to Loss	15,000		18,700
Lennar Homebuilding Unconsolidated VIE [Member]
Variable Interest Entity [Line Items]
Letters of credit outstanding, amount	11,600		4,800
Variable Interest Entity, Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Equity Method Investments	113,926		109,087
Lennar's Maximum Exposure to Loss	140,830		132,865
Variable Interest Entity, Primary Beneficiary [Member] | Lennar Homebuilding [Member]
Variable Interest Entity [Line Items]
Equity Method Investments	90,300	[2]	85,500	[2]
Lennar's Maximum Exposure to Loss	117,204	[2]	109,278	[2]
Variable Interest Entity, Primary Beneficiary [Member] | Rialto Investments [Member]
Variable Interest Entity [Line Items]
Equity Method Investments	23,626	[3]	23,587	[3]
Lennar's Maximum Exposure to Loss	$ 23,626	[3]	$ 23,587	[3]

[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 February 28, 2013, total assets include $1,837.4 million related to consolidated VIEs of which $15.9 million is included in Lennar Homebuilding cash and cash equivalents, $6.0 million in Lennar Homebuilding receivables, net, $65.6 million in Lennar Homebuilding finished homes and construction in progress, $485.6 million in Lennar Homebuilding land and land under development, $65.9 million in Lennar Homebuilding consolidated inventory not owned, $44.5 million in Lennar Homebuilding investments in unconsolidated entities, $223.2 million in Lennar Homebuilding other assets, $63.3 million in Rialto Investments cash and cash equivalents, $4.7 million in Rialto Investments defeasance cash to retire notes payable, $318.5 million in Rialto Investments loans receivable, net, $115.3 million in Rialto Investments real estate owned, held-for-sale, $422.8 million in Rialto Investments real estate owned, held-and-used, net $0.6 million in Rialto Investments in unconsolidated entities and $5.5 million in Rialto Investments other assets.As of November 30, 2012, total assets include $2,128.6 million related to consolidated VIEs of which $13.2 million is included in Lennar Homebuilding cash and cash equivalents, $6.0 million in Lennar Homebuilding receivables, net, $57.4 million in Lennar Homebuilding finished homes and construction in progress, $482.6 million in Lennar Homebuilding land and land under development, $65.2 million in Lennar Homebuilding consolidated inventory not owned, $43.7 million in Lennar Homebuilding investments in unconsolidated entities, $224.1 million in Lennar Homebuilding other assets, $104.8 million in Rialto Investments cash and cash equivalents, $223.8 million in Rialto Investments defeasance cash to retire notes payable, $350.2 million in Rialto Investments loans receivable, net, $94.2 million in Rialto Investments real estate owned, held-for-sale, $454.9 million in Rialto Investments real estate owned, held-and-used, net, $0.7 million in Rialto Investments in unconsolidated entities and $7.8 million in Rialto Investments other assets.

[2] At February 28, 2013, the maximum exposure to loss of Lennar Homebuilding’s investments in unconsolidated VIEs is limited to its investment in the unconsolidated VIEs, except with regard to $15.0 million of recourse debt of one of the unconsolidated VIEs, which is included in the Company’s maximum recourse related to Lennar Homebuilding unconsolidated entities, and $11.6 million of letters of credit outstanding for certain of the unconsolidated VIEs that in the event of default under its debt agreement the letter of credit will be drawn upon. At November 30, 2012, the maximum exposure to loss of Lennar Homebuilding’s investments in unconsolidated VIEs is limited to its investment in the unconsolidated VIEs, except with regard to $18.7 million of recourse debt of one of the unconsolidated VIEs, which is included in the Company’s maximum recourse related to Lennar Homebuilding unconsolidated entities and $4.8 million of letters of credit outstanding for certain of the unconsolidated VIEs that in the event of default under its debt agreement the letter of credit will be drawn upon.

[3] At both February 28, 2013 and November 30, 2012, the maximum recourse exposure to loss of Rialto’s investment in unconsolidated VIEs was its investments in unconsolidated entities. At February 28, 2013 and November 30, 2012, investments in unconsolidated VIEs and Lennar’s maximum exposure to loss include $15.3 million and $15.0 million, respectively, related to Rialto’s investments held-to-maturity.

XML

Supplemental Financial Information (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Feb. 28, 2013	Feb. 28, 2013 5.95% Senior Notes Due 2013 [Member]	Feb. 28, 2013 5.50% Senior Notes Due 2014 [Member]	Feb. 28, 2013 5.60% Senior Notes Due 2015 [Member]	Feb. 28, 2013 6.50% Senior Notes Due 2016 [Member]	Feb. 28, 2013 4.75% Senior Notes Due 2017 [Member]	Feb. 28, 2013 12.25% Senior Notes Due 2017 [Member]	Feb. 28, 2013 4.125% Senior Notes Due 2018 [Member]	Feb. 28, 2013 6.95% Senior Notes Due 2018 [Member]	Feb. 28, 2013 2.00% Convertible Senior Notes Due 2020 [Member]	May 31, 2010 2.00% Convertible Senior Notes Due 2020 [Member]	Feb. 28, 2013 2.75% Convertible Senior Notes Due 2020 [Member]	Nov. 30, 2010 2.75% Convertible Senior Notes Due 2020 [Member]	Feb. 28, 2013 3.25% Convertible Senior Notes Due 2021 [Member]	Nov. 30, 2011 3.25% Convertible Senior Notes Due 2021 [Member]	Nov. 30, 2012 4.750% Senior Notes Due 2022 [Member]	Feb. 28, 2013 Letter Of Credit Agreement 3 [Member]	Feb. 28, 2013 Letter of Credit Agreement 1 [Member]
Condensed Financial Statements, Captions [Line Items]
Interest rate		5.95%	5.50%	5.60%	6.50%	4.75%	12.25%	4.125%	6.95%	2.00%	2.00%	2.75%	2.75%	3.25%	3.25%	4.75%
Guarantee by subsidiaries	$ 75,000
Line of credit facility current borrowing capacity																	$ 200,000	$ 150,000

XML

Financial Instruments (Schedule Of Gains And Losses Of Financial Instruments) (Details) (Lennar Financial Services [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended
	Feb. 28, 2013	Feb. 29, 2012
Loans Held-For-Sale [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Gains and losses of financial instruments	$ (10,780)	$ (1,307)
Mortgage Loan Commitments [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Gains and losses of financial instruments	(705)	1,442
Forward Contracts [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Gains and losses of financial instruments	$ 442	$ 735

XML

Lennar Homebuilding Investments In Unconsolidated Entities (Tables)

3 Months Ended

Feb. 28, 2013

Schedule of Equity Method Investments [Line Items]

Statements Of Operations

Summarized condensed financial information on a combined 100% basis related to Lennar Homebuilding’s unconsolidated entities that are accounted for by the equity method was as follows:

Statements of Operations

	Three Months Ended
	February 28,			February 29,
(In thousands)	2013			2012
Revenues	$	81,224		82,644
Costs and expenses	81,637			83,422
Other income	13,361			—
Net earnings (loss) of unconsolidated entities	$	12,948		(778	)
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities	$	(867	)	1,083

Statements of Operations

	Three Months Ended
	February 28,		February 29,
(In thousands)	2013		2012
Revenues	$	53,343	122,405
Costs and expenses	59,114		51,185
Other income, net (1)	56,001		266,440
Net earnings of unconsolidated entities	$	50,230	337,660
Rialto Investments equity in earnings from unconsolidated entities	$	6,173	18,458

(1) Other income, net, for the three months ended February 29, 2012 includes the AB PPIP Fund's mark-to-market unrealized gains and unrealized losses, all of which the Company’s portion is a small percentage

Balance Sheets

Balance Sheets

(In thousands)	February 28, 2013		November 30, 2012
Assets:
Cash and cash equivalents	$	167,418	157,340
Inventories	2,802,210		2,792,064
Other assets	183,024		250,940
	$	3,152,652	3,200,344
Liabilities and equity:
Accounts payable and other liabilities	$	255,369	310,496
Debt	718,154		759,803
Equity	2,179,129		2,130,045
	$	3,152,652	3,200,344

Summary Of Net Recourse Exposure To Unconsolidated Entities

The summary of the Company’s net recourse exposure related to Lennar Homebuilding unconsolidated entities in which the Company has investments was as follows:

(In thousands)	February 28, 2013			November 30, 2012
Several recourse debt - repayment	$	40,773		48,020
Joint and several recourse debt - repayment	15,000			18,695
The Company’s maximum recourse exposure	55,773			66,715
Less: joint and several reimbursement agreements with the Company’s partners	(13,500		)	(16,826	)
The Company’s net recourse exposure	$	42,273		49,889

Summarized Balance Sheets Of Unconsolidated Entities With Recourse Debt

The summarized balance sheets of Lennar Homebuilding’s unconsolidated entities with recourse debt were as follows:

(In thousands)	February 28, 2013		November 30, 2012
Assets	$	1,811,292	1,843,163
Liabilities	$	732,346	765,295
Equity	$	1,078,946	1,077,868

Total Debt Of Unconsolidated Entities

The total debt of the Lennar Homebuilding unconsolidated entities in which the Company has investments was as follows:

(In thousands)	February 28, 2013			November 30, 2012
The Company’s net recourse exposure	$	42,273		49,889
Reimbursement agreements from partners	13,500			16,826
The Company’s maximum recourse exposure	$	55,773		66,715
Non-recourse bank debt and other debt (partner’s share of several recourse)	$	93,066		114,900
Non-recourse land seller debt or other debt	18,488			26,340
Non-recourse debt with completion guarantees	464,044			458,418
Non-recourse debt without completion guarantees	86,783			93,430
Non-recourse debt to the Company	662,381			693,088
Total debt	$	718,154		759,803
The Company’s maximum recourse exposure as a % of total JV debt	8		%	9	%

XML

Lennar Financial Services Segment (Schedule Of Assets And Liabilities) (Details) (USD $) In Thousands, unless otherwise specified	Feb. 28, 2013		Nov. 30, 2012		Feb. 29, 2012	Nov. 30, 2011
Segment Reporting Information [Line Items]
Cash and cash equivalents	$ 1,242,116		$ 1,310,743		$ 922,906	$ 1,163,604
Total assets	10,432,269	[1]	10,362,206	[1]
Total liabilities	6,362,629	[2]	6,360,998	[2]
Lennar Financial Services [Member]
Segment Reporting Information [Line Items]
Cash and cash equivalents	65,200		58,566		56,555
Restricted cash	12,566		12,972
Receivables, net	171,580	[3]	172,230	[3]
Loans held-for-sale	334,658	[4]	502,318	[4]
Loans held-for-investment, net	23,593		23,982
Investments held-to-maturity	62,746		63,924
Goodwill	34,046		34,046
Other assets	43,776	[5]	44,957	[5]
Total assets	748,165	[1]	912,995	[1]
Notes and Loans Payable	311,933		457,994
Other liabilities	162,616	[6]	172,978	[6]
Total liabilities	474,549	[2]	630,972	[2]
Self-insurance reserves	75,700		76,100
Mortgage Loan Commitments [Member] | Lennar Financial Services [Member]
Segment Reporting Information [Line Items]
Other assets	12,000		12,700
Forward Contracts [Member] | Lennar Financial Services [Member]
Segment Reporting Information [Line Items]
Other liabilities	$ 2,100		$ 2,600

[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 February 28, 2013, total assets include $1,837.4 million related to consolidated VIEs of which $15.9 million is included in Lennar Homebuilding cash and cash equivalents, $6.0 million in Lennar Homebuilding receivables, net, $65.6 million in Lennar Homebuilding finished homes and construction in progress, $485.6 million in Lennar Homebuilding land and land under development, $65.9 million in Lennar Homebuilding consolidated inventory not owned, $44.5 million in Lennar Homebuilding investments in unconsolidated entities, $223.2 million in Lennar Homebuilding other assets, $63.3 million in Rialto Investments cash and cash equivalents, $4.7 million in Rialto Investments defeasance cash to retire notes payable, $318.5 million in Rialto Investments loans receivable, net, $115.3 million in Rialto Investments real estate owned, held-for-sale, $422.8 million in Rialto Investments real estate owned, held-and-used, net $0.6 million in Rialto Investments in unconsolidated entities and $5.5 million in Rialto Investments other assets.As of November 30, 2012, total assets include $2,128.6 million related to consolidated VIEs of which $13.2 million is included in Lennar Homebuilding cash and cash equivalents, $6.0 million in Lennar Homebuilding receivables, net, $57.4 million in Lennar Homebuilding finished homes and construction in progress, $482.6 million in Lennar Homebuilding land and land under development, $65.2 million in Lennar Homebuilding consolidated inventory not owned, $43.7 million in Lennar Homebuilding investments in unconsolidated entities, $224.1 million in Lennar Homebuilding other assets, $104.8 million in Rialto Investments cash and cash equivalents, $223.8 million in Rialto Investments defeasance cash to retire notes payable, $350.2 million in Rialto Investments loans receivable, net, $94.2 million in Rialto Investments real estate owned, held-for-sale, $454.9 million in Rialto Investments real estate owned, held-and-used, net, $0.7 million in Rialto Investments in unconsolidated entities and $7.8 million in Rialto Investments other assets.

[2] As of February 28, 2013, total liabilities include $435.3 million related to consolidated VIEs as to which there was no recourse against the Company, of which $10.1 million is included in Lennar Homebuilding accounts payable, $35.8 million in Lennar Homebuilding liabilities related to consolidated inventory not owned, $186.7 million in Lennar Homebuilding senior notes and other debts payable, $14.5 million in Lennar Homebuilding other liabilities and $188.2 million in Rialto Investments notes payable and other liabilities.As of November 30, 2012, total liabilities include $737.2 million related to consolidated VIEs as to which there was no recourse against the Company, of which $10.6 million is included in Lennar Homebuilding accounts payable, $35.9 million in Lennar Homebuilding liabilities related to consolidated inventory not owned, $181.6 million in Lennar Homebuilding senior notes and other debts payable, $15.7 million in Lennar Homebuilding other liabilities and $493.4 million in Rialto Investments notes payable and other liabilities.

[3] Receivables, net primarily relate to loans sold to investors for which the Company had not yet been paid as of February 28, 2013 and November 30, 2012, respectively.

[4] Loans held-for-sale relate to unsold loans carried at fair value.

[5] Other assets include mortgage loan commitments carried at fair value of $12.0 million and $12.7 million as of February 28, 2013 and November 30, 2012

[6] Other liabilities include $75.7 million and $76.1 million as of February 28, 2013 and November 30, 2012, respectively, of certain of the Company’s self-insurance reserves related to general liability and workers’ compensation. Other liabilities also include forward contracts carried at fair value of $2.1 million and $2.6 million as of February 28, 2013 and November 30, 2012

XML

Lennar Homebuilding Investments In Unconsolidated Entities (Summary Of Net Recourse Exposure To Unconsolidated Entities) (Details) (USD $) In Thousands, unless otherwise specified	Feb. 28, 2013	Nov. 30, 2012
Equity Method Investments and Joint Ventures [Abstract]
Several recourse debt - repayment	$ 40,773	$ 48,020
Joint and several recourse debt - repayment	15,000	18,695
The Company's maximum recourse exposure	55,773	66,715
Less: joint and several reimbursement agreements with the Company's partners	(13,500)	(16,826)
The Company's net recourse exposure	$ 42,273	$ 49,889

XML

Consolidation Of Variable Interest Entities (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Feb. 28, 2013		Nov. 30, 2012
Variable Interest Entity [Line Items]
Consolidated VIEs assets	$ 1,837,400		$ 2,128,600
Consolidated VIEs non-recourse liabilities	435,300		737,200
Increase in consolidated inventory and related liabilities	6,400
Decrease in consolidated inventory and related liabilities	1,400
Non-refundable option deposits and pre-acquisition costs	134,600		176,700
Letters of credit	38,900		42,500
Lennar Homebuilding [Member]
Variable Interest Entity [Line Items]
Investments in unconsolidated entities	577,342	[1]	565,360	[1]
Rialto Investments [Member]
Variable Interest Entity [Line Items]
Investments in unconsolidated entities	106,609	[1]	108,140	[1]
Consolidated VIEs assets	930,700		1,236,400
Consolidated VIEs non-recourse liabilities	188,200		493,400
Recourse Debt [Member] | Lennar Homebuilding [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	15,000		18,700
Lennar Homebuilding Unconsolidated VIE [Member]
Variable Interest Entity [Line Items]
Letters of credit outstanding, amount	$ 11,600		$ 4,800

[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 February 28, 2013, total assets include $1,837.4 million related to consolidated VIEs of which $15.9 million is included in Lennar Homebuilding cash and cash equivalents, $6.0 million in Lennar Homebuilding receivables, net, $65.6 million in Lennar Homebuilding finished homes and construction in progress, $485.6 million in Lennar Homebuilding land and land under development, $65.9 million in Lennar Homebuilding consolidated inventory not owned, $44.5 million in Lennar Homebuilding investments in unconsolidated entities, $223.2 million in Lennar Homebuilding other assets, $63.3 million in Rialto Investments cash and cash equivalents, $4.7 million in Rialto Investments defeasance cash to retire notes payable, $318.5 million in Rialto Investments loans receivable, net, $115.3 million in Rialto Investments real estate owned, held-for-sale, $422.8 million in Rialto Investments real estate owned, held-and-used, net $0.6 million in Rialto Investments in unconsolidated entities and $5.5 million in Rialto Investments other assets.As of November 30, 2012, total assets include $2,128.6 million related to consolidated VIEs of which $13.2 million is included in Lennar Homebuilding cash and cash equivalents, $6.0 million in Lennar Homebuilding receivables, net, $57.4 million in Lennar Homebuilding finished homes and construction in progress, $482.6 million in Lennar Homebuilding land and land under development, $65.2 million in Lennar Homebuilding consolidated inventory not owned, $43.7 million in Lennar Homebuilding investments in unconsolidated entities, $224.1 million in Lennar Homebuilding other assets, $104.8 million in Rialto Investments cash and cash equivalents, $223.8 million in Rialto Investments defeasance cash to retire notes payable, $350.2 million in Rialto Investments loans receivable, net, $94.2 million in Rialto Investments real estate owned, held-for-sale, $454.9 million in Rialto Investments real estate owned, held-and-used, net, $0.7 million in Rialto Investments in unconsolidated entities and $7.8 million in Rialto Investments other assets.

XML

Operating And Reporting Segments (Disclosure Of Financial Information Relating To Company's Operations) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Feb. 28, 2013		Feb. 29, 2012
Revenues:
Total revenues	$ 989,946	[1]	$ 724,856	[1]
Operating Income (Loss) [Abstract]
Total operating earnings	84,591		33,295
General and Administrative Expense	31,270		26,842
Earnings before income taxes	53,321		6,453
Sales incentives	74,023		84,454
Sales incentives per home delivered	23,300		34,200
Homebuilding East [Member]
Revenues:
Real estate revenues	288,892		244,833
Operating Income (Loss) [Abstract]
Total operating earnings	22,875		13,947
Homebuilding Central [Member]
Revenues:
Real estate revenues	149,032		85,713
Operating Income (Loss) [Abstract]
Total operating earnings	13,957		1,064
Homebuilding West [Member]
Revenues:
Real estate revenues	174,075		123,085
Operating Income (Loss) [Abstract]
Total operating earnings	12,603		(7,573)
Homebuilding Southeast Florida [Member]
Revenues:
Real estate revenues	71,851		49,789
Operating Income (Loss) [Abstract]
Total operating earnings	9,408		6,634
Homebuilding Houston [Member]
Revenues:
Real estate revenues	108,518		84,834
Operating Income (Loss) [Abstract]
Total operating earnings	9,506		4,516
Homebuilding Other [Member]
Revenues:
Real estate revenues	76,076		36,179
Operating Income (Loss) [Abstract]
Total operating earnings	(1,211)		1,401
Rialto Investments [Member]
Revenues:
Rialto Investments, Revenues	25,622		32,208
Operating Income (Loss) [Abstract]
Total operating earnings	1,351	[2]	5,056	[2]
Lennar Financial Services [Member]
Revenues:
Financial Services, Revenues	95,880		68,215
Operating Income (Loss) [Abstract]
Total operating earnings	$ 16,102		$ 8,250

[1] Total revenues are net of sales incentives of $74.0 million ($23,300 per home delivered) for the three months ended February 28, 2013, compared to $84.5 million ($34,200 per home delivered) for the three months ended February 29, 2012.

[2] (1)Operating earnings for the three months ended February 28, 2013 and February 29, 2012 include net loss attributable to noncontrolling interests of ($0.3) million and ($4.3) million, respectively.

XML

Rialto Investments Segment (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended			3 Months Ended			1 Months Ended	12 Months Ended				3 Months Ended				1 Months Ended		3 Months Ended
	Feb. 28, 2013	Feb. 29, 2012	Nov. 30, 2012	Feb. 28, 2013 Real Estate Investment Fund [Member]	Feb. 29, 2012 Real Estate Investment Fund [Member]	Nov. 30, 2012 Real Estate Investment Fund [Member]	Sep. 30, 2010 Bank Portfolios [Member]	Nov. 30, 2012 Bank Portfolios [Member]	Nov. 30, 2010 Commercial Mortgage-Backed Securities [Member]	Feb. 28, 2013 Servicer Provider [Member]	Nov. 30, 2012 Servicer Provider [Member]	Feb. 28, 2013 FDIC [Member]	Nov. 30, 2012 FDIC [Member]	Feb. 28, 2010 FDIC [Member]	Feb. 28, 2013 Rialto Segment And Fdic [Member]	Mar. 31, 2013 Real Estate Investment Fund II [Member]	Feb. 28, 2013 Real Estate Investment Fund II [Member]	Feb. 28, 2013 Rialto Investments [Member]		Feb. 29, 2012 Rialto Investments [Member]	Nov. 30, 2012 Rialto Investments [Member]
Segment Reporting Information [Line Items]
Gains from sales of REO																		$ 8,671		$ 42
Gains (losses) upon acquisition of REO																		1,500		5,800
Managing member equity interests in two limited liability companies														40.00%
Number of failed financial institutions														22
Number of distressed residential and commercial real estate loans							400							5,500
Managing member equity interests percentage														60.00%
Notes payable	4,505,662		4,005,051				124,000					167,200	470,000	626,900	11,200			270,357	[1]		574,480	[1]
Financing interest rate														0.00%
Defeasance cash to retire notes payable																		4,655	[2]		223,813	[2]
Principal amount of notes payable retired	(304,123)	(170,026)						33,000				302,800						(304,123)		(170,026)
Total consolidated VIEs assets	1,837,400		2,128,600															930,700			1,236,400
Total consolidated VIEs liabilities	435,300		737,200															188,200			493,400
Number of real estate owned properties							300
Payments for distressed real estate and real estate related assets							310,000
Average recorded investment in loans																		37,000		69,000
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses																		16,900			12,200
Impaired financing receivable, related allowance																		1,700			3,700
Provision for loan losses																		1,000		900
Charge-offs upon foreclosure of loans																		3,000		1,600
Value of investment prior to discount									43,000
Actual investment made									19,400
Discount on investment percentage									55.00%
Final distribution date									November 2020
Stated maturity date									October 2057
Investments held-to-maturity																		15,262	[2]		15,012	[2]
Investment commitment						75,000											100,000
Equity Commitment Called																75,000
Equity commitments						700,000											260,000
Total contributions and investments to unconsolidated entities by company					7,300											29,000		0		7,294
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital				7,700														7,680		81
Investments in unconsolidated entities				97,600		98,900				8,400	8,400							106,609	[2]		108,140	[2]
Rialto Investments equity in earnings (loss) from unconsolidated entities				6,400	7,600													6,173		18,458
Retained equity interests										5.00%
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision for Loan Losses																		6,100
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities, Write-Downs																		$ 1,400

[1] As of February 28, 2013, total liabilities include $435.3 million related to consolidated VIEs as to which there was no recourse against the Company, of which $10.1 million is included in Lennar Homebuilding accounts payable, $35.8 million in Lennar Homebuilding liabilities related to consolidated inventory not owned, $186.7 million in Lennar Homebuilding senior notes and other debts payable, $14.5 million in Lennar Homebuilding other liabilities and $188.2 million in Rialto Investments notes payable and other liabilities.As of November 30, 2012, total liabilities include $737.2 million related to consolidated VIEs as to which there was no recourse against the Company, of which $10.6 million is included in Lennar Homebuilding accounts payable, $35.9 million in Lennar Homebuilding liabilities related to consolidated inventory not owned, $181.6 million in Lennar Homebuilding senior notes and other debts payable, $15.7 million in Lennar Homebuilding other liabilities and $493.4 million in Rialto Investments notes payable and other liabilities.

[2] 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 February 28, 2013, total assets include $1,837.4 million related to consolidated VIEs of which $15.9 million is included in Lennar Homebuilding cash and cash equivalents, $6.0 million in Lennar Homebuilding receivables, net, $65.6 million in Lennar Homebuilding finished homes and construction in progress, $485.6 million in Lennar Homebuilding land and land under development, $65.9 million in Lennar Homebuilding consolidated inventory not owned, $44.5 million in Lennar Homebuilding investments in unconsolidated entities, $223.2 million in Lennar Homebuilding other assets, $63.3 million in Rialto Investments cash and cash equivalents, $4.7 million in Rialto Investments defeasance cash to retire notes payable, $318.5 million in Rialto Investments loans receivable, net, $115.3 million in Rialto Investments real estate owned, held-for-sale, $422.8 million in Rialto Investments real estate owned, held-and-used, net $0.6 million in Rialto Investments in unconsolidated entities and $5.5 million in Rialto Investments other assets.As of November 30, 2012, total assets include $2,128.6 million related to consolidated VIEs of which $13.2 million is included in Lennar Homebuilding cash and cash equivalents, $6.0 million in Lennar Homebuilding receivables, net, $57.4 million in Lennar Homebuilding finished homes and construction in progress, $482.6 million in Lennar Homebuilding land and land under development, $65.2 million in Lennar Homebuilding consolidated inventory not owned, $43.7 million in Lennar Homebuilding investments in unconsolidated entities, $224.1 million in Lennar Homebuilding other assets, $104.8 million in Rialto Investments cash and cash equivalents, $223.8 million in Rialto Investments defeasance cash to retire notes payable, $350.2 million in Rialto Investments loans receivable, net, $94.2 million in Rialto Investments real estate owned, held-for-sale, $454.9 million in Rialto Investments real estate owned, held-and-used, net, $0.7 million in Rialto Investments in unconsolidated entities and $7.8 million in Rialto Investments other assets.

XML

Product Warranty (Schedule Of Product Warranty Reserve) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Feb. 28, 2013	Feb. 29, 2012
Product Warranties Disclosures [Abstract]
Warranty reserve, beginning of period	$ 84,188	$ 88,120
Warranties issued during the period	8,759	6,855
Adjustments to pre-existing warranties from changes in estimates	2,949	1,367
Payments	(10,688)	(10,625)
Warranty reserve, end of period	$ 85,208	$ 85,717

XML

Rialto Investments Segment (Changes In Real Estate Owned) (Details) (Rialto Investments [Member], USD $) In Thousands, unless otherwise specified					3 Months Ended
	Feb. 28, 2013		Nov. 30, 2012		Feb. 28, 2013 Real Estate Owned [Member]		Feb. 29, 2012 Real Estate Owned [Member]
Segment Reporting Information [Line Items]
REO - held-for-sale, beginning of period	$ 178,678	[1]	$ 134,161	[1]	$ 134,161		$ 143,677
REO - held-for-sale, additions					594		1,134
REO - held-for-sale, improvements					1,016		3,963
REO - held-for-sale, sales					(25,780)		(36,844)
REO - held-for-sale, impairments					(699)		(1,240)
REO - held-for-sale, transfers to from held-and-used, net					69,386	[2]	(9,111)	[2]
REO - held-for-sale, net, end of period	178,678	[1]	134,161	[1]	178,678		101,579
REO - held-and-used, net, beginning of period	547,273	[1]	601,022	[1]	601,022		582,111
REO - held-and-used, additions					16,192		46,241
REO - held-and-used, improvements					700		0
REO - held-and-used, sales					0		(981)
REO - held-and-used, impairments					(96)		(2,597)
REO - held-and-used, depreciation					(1,159)		(3,315)
REO - held-and-used, transfers to from held-for-sale					(69,386)	[2]	9,111	[2]
REO - held-and-used, net, end of period	$ 547,273	[1]	$ 601,022	[1]	$ 547,273		$ 630,570

[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 February 28, 2013, total assets include $1,837.4 million related to consolidated VIEs of which $15.9 million is included in Lennar Homebuilding cash and cash equivalents, $6.0 million in Lennar Homebuilding receivables, net, $65.6 million in Lennar Homebuilding finished homes and construction in progress, $485.6 million in Lennar Homebuilding land and land under development, $65.9 million in Lennar Homebuilding consolidated inventory not owned, $44.5 million in Lennar Homebuilding investments in unconsolidated entities, $223.2 million in Lennar Homebuilding other assets, $63.3 million in Rialto Investments cash and cash equivalents, $4.7 million in Rialto Investments defeasance cash to retire notes payable, $318.5 million in Rialto Investments loans receivable, net, $115.3 million in Rialto Investments real estate owned, held-for-sale, $422.8 million in Rialto Investments real estate owned, held-and-used, net $0.6 million in Rialto Investments in unconsolidated entities and $5.5 million in Rialto Investments other assets.As of November 30, 2012, total assets include $2,128.6 million related to consolidated VIEs of which $13.2 million is included in Lennar Homebuilding cash and cash equivalents, $6.0 million in Lennar Homebuilding receivables, net, $57.4 million in Lennar Homebuilding finished homes and construction in progress, $482.6 million in Lennar Homebuilding land and land under development, $65.2 million in Lennar Homebuilding consolidated inventory not owned, $43.7 million in Lennar Homebuilding investments in unconsolidated entities, $224.1 million in Lennar Homebuilding other assets, $104.8 million in Rialto Investments cash and cash equivalents, $223.8 million in Rialto Investments defeasance cash to retire notes payable, $350.2 million in Rialto Investments loans receivable, net, $94.2 million in Rialto Investments real estate owned, held-for-sale, $454.9 million in Rialto Investments real estate owned, held-and-used, net, $0.7 million in Rialto Investments in unconsolidated entities and $7.8 million in Rialto Investments other assets.

[2] (1)During the three months ended February 28, 2013 and February 29, 2012, the Rialto segment transferred certain properties to/from REO held-and-used, net to/from REO held-for-sale as a result of changes in the disposition strategy of the real estate assets.

XML

Income Taxes (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Feb. 28, 2013	Feb. 29, 2012	Nov. 30, 2012
Valuation Allowance [Line Items]
Income Tax Provision	$ 21,500
Deferred tax assets, valuation allowance	63,700		88,800
Deferred Tax Assets, Net	475,300
Deferred Tax Assets, Operating Loss Carryforwards	279,700		278,800
Deferred Tax Assets, Operating Loss Carryforwards, state expire in one year	7,900
Operating Loss Carryforwards, Valuation Allowance	59,500		84,600
Deferred Tax Assets, Operating Loss Carryforwards, State and Local	173,500		173,600
Federal taxable income necessary to recognize deferred tax asset	1,000,000
Income tax benefit	(3,637)	(1,524)
Unrecognized tax benefits	8,800		12,300
Unrecognized tax benefits that would impact effective tax rate if recognized	5,700
Unrecognized tax benefits reductions from various taxing authorities	1,600
Decreases due to settlements with taxing authorities	3,500
Effective Income Tax Rate, Continuing Operations	(6.75%)
Income tax penalties and interest accrued	18,100		20,500
Income tax penalties and interest accrued recorded during the period	400
Decrease in accrued interest and penalties	2,800
State Deferred Tax Asset [Member]
Valuation Allowance [Line Items]
Reversal of deferred tax asset, valuation allowance	25,100
Lennar Homebuilding [Member]
Valuation Allowance [Line Items]
Deferred Tax Assets, Net	481,200
Lennar Financial Services [Member]
Valuation Allowance [Line Items]
Deferred Tax Assets, Net	$ (5,900)
Federal Net Operating Loss Carryforwards [Member]
Valuation Allowance [Line Items]
Operating Loss Carryforwards, Expiration Dates	20
State Net Operating Loss Carryforwards Years [Member]
Valuation Allowance [Line Items]
Operating Loss Carryforwards, Expiration Dates	2013 and 2032
State Net Operating Loss Carryforwards High End Range [Member]
Valuation Allowance [Line Items]
Operating Loss Carryforwards, Expiration Dates	20
State Net Operating Loss Carryforwards [Member]
Valuation Allowance [Line Items]
Operating Loss Carryforwards, Expiration Dates	5
Federal Net Operating Loss Carryforwards Year [Member]
Valuation Allowance [Line Items]
Operating Loss Carryforwards, Expiration Dates	2025

XML

Stockholders' Equity

3 Months Ended

Feb. 28, 2013

Stockholders' Equity Note [Abstract]

Stockholders' Equity

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 three months ended February 28, 2013 and February 29, 2012:

				Stockholders’ Equity
(In thousands)	Total Equity			Class A Common Stock	Class B Common Stock	Additional Paid in Capital	Treasury Stock		Retained Earnings		Noncontrolling Interests
Balance at November 30, 2012	$	4,001,208		17,240	3,298	2,421,941	(632,846	)	1,605,131		586,444
Net earnings (including net loss    attributable to noncontrolling    interests)	56,958			—	—	—	—		57,492		(534	)
Employee stock and directors    plans	21,668			33	—	4,487	17,148		—		—
Tax benefit from employee stock    plans and vesting of restricted    stock	3,164			—	—	3,164	—		—		—
Amortization of restricted stock	6,486			—	—	6,486	—		—		—
Cash dividends	(7,693		)	—	—	—	—		(7,693	)	—
Receipts related to    noncontrolling interests	434			—	—	—	—		—		434
Payments related to    noncontrolling interests	(12,585		)	—	—	—	—		—		(12,585	)
Balance at February 28, 2013	$	4,069,640		17,273	3,298	2,436,078	(615,698	)	1,654,930		573,759

				Stockholders’ Equity
(In thousands)	Total Equity			Class A Common Stock	Class B Common Stock	Additional Paid in Capital	Treasury Stock		Retained Earnings		Noncontrolling Interests
Balance at November 30, 2011	$	3,303,525		16,910	3,298	2,341,079	(621,220	)	956,401		607,057
Net earnings (including net    loss attributable to    noncontrolling interests)	7,977			—	—	—	—		14,968		(6,991	)
Employee stock and directors    plans	11,646			46	—	6,078	5,522		—		—
Amortization of restricted stock	7,276			—	—	7,276	—		—		—
Cash dividends	(7,562		)	—	—	—	—		(7,562	)	—
Receipts related to    noncontrolling interests	391			—	—	—	—		—		391
Balance at February 29, 2012	$	3,323,253		16,956	3,298	2,354,433	(615,698	)	963,807		600,457

The Company has a stock repurchase program which permits the purchase of up to 20 million shares of its outstanding common stock. During the three months ended February 28, 2013 and February 29, 2012, there were no repurchases of common stock under the stock repurchase program. As of February 28, 2013, 6.2 million shares of common stock can be repurchased in the future under the program.

During three months ended February 28, 2013 and February 29, 2012, treasury stock decreased by 0.5 million and 0.3 million, respectively, in Class A common shares due to activity related to the Company's equity compensation plan.

XML

Rialto Investments Segment (Condensed Financial Information By Equity Method Investment) (Details) (Rialto Investments [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended
	Feb. 28, 2013		Feb. 29, 2012		Nov. 30, 2012
Rialto Investments [Member]
Segment Reporting Information [Line Items]
Cash and cash equivalents	$ 82,820				$ 299,172
Loans receivable	388,033				361,286
Real estate owned	187,413				161,964
Investment securities	234,505				182,399
Equity Method Investment Summarized Financial Information Investments In Real Estate Partnerships	127,931				72,903
Other assets	182,528				199,839
Total Assets	1,203,230				1,277,563
Accounts payable and other liabilities	145,115				155,928
Notes payable	80,213				120,431
Partner loans	163,516				163,516
Equity	814,386				837,688
Total liabilities and equity	1,203,230				1,277,563
Revenues	53,343		122,405
Costs and expenses	59,114		51,185
Other income, net	56,001	[1]	266,440	[1]
Net earnings (loss) of unconsolidated entities	50,230		337,660
Rialto Investments' share of net earnings (loss) recognized	$ 6,173		$ 18,458

[1] (1)Other income, net, for the three months ended February 29, 2012 includes the AB PPIP Fund's mark-to-market unrealized gains and unrealized losses, all of which the Company’s portion is a small percentage

XML

Lennar Homebuilding Investments In Unconsolidated Entities (Summarized Balance Sheets Of Unconsolidated Entities With Recourse Debt) (Details) (USD $) In Thousands, unless otherwise specified	Feb. 28, 2013	Nov. 30, 2012
Equity Method Investments and Joint Ventures [Abstract]
Assets	$ 1,811,292	$ 1,843,163
Liabilities	732,346	765,295
Equity	$ 1,078,946	$ 1,077,868

XML

Rialto Investments Segment (Tables)

3 Months Ended

Feb. 28, 2013

Segment Reporting Information [Line Items]

Assets And Liabilities Related To Rialto Segment

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

(In thousands)	February 28, 2013		November 30, 2012
Assets:
Cash and cash equivalents	$	64,188	105,310
Defeasance cash to retire notes payable	4,655		223,813
Loans receivable, net	406,207		436,535
Real estate owned - held-for-sale	178,678		134,161
Real estate owned - held-and-used, net	547,273		601,022
Investments in unconsolidated entities	106,609		108,140
Investments held-to-maturity	15,262		15,012
Other	19,361		23,367
	$	1,342,233	1,647,360
Liabilities:
Notes payable	$	270,357	574,480
Other	14,809		26,122
	$	285,166	600,602

Operating Earnings Related To Rialto Segment

Rialto’s operating earnings were as follows:

	Three Months Ended
	February 28,		February 29,
(In thousands)	2013		2012
Revenues	$	25,622	32,208
Costs and expenses	31,771		33,370
Rialto Investments equity in earnings from unconsolidated entities	6,173		18,458
Rialto Investments other income (expense), net	1,327		(12,240	)
Operating earnings (1)	$	1,351	5,056

(1) Operating earnings for the three months ended February 28, 2013 and February 29, 2012 include net loss attributable to noncontrolling interests of ($0.3) million and ($4.3) million, respectively.

Other Income (Expense), Net Related To Rialto Segment [Text Block]

The following is a detail of Rialto Investments other income (expense), net for the periods indicated:

	Three Months Ended
	February 28,			February 29,
(In thousands)	2013			2012
Realized gains on REO sales, net	$	8,671		42
Unrealized gains on transfer of loans receivable to REO, net	670			1,952
REO expenses	(12,556		)	(18,074	)
Rental income	4,542			3,840
Rialto Investments other income (expense), net	$	1,327		(12,240	)

Loans Receivable By Aggregate Collateral Type

The following table displays the loans receivable by aggregate collateral type:

(In thousands)	February 28, 2013		November 30, 2012
Land	$	202,094	216,095
Single family homes	82,999		93,207
Commercial properties	89,512		96,226
Multi-family homes	17,200		12,776
Other	14,402		18,231
Loans receivable	$	406,207	436,535

Outstanding Balance And Carrying Value Of Loans

The outstanding balance and carrying value of loans accounted for under ASC 310-30 was as follows:

(In thousands)	February 28, 2013		November 30, 2012
Outstanding principal balance	$	766,840	812,187
Carrying value	$	372,105	396,200

Accretable Yield For The FDIC Portfolios And Bank Portfolios

The activity in the accretable yield for the FDIC Portfolios and Bank Portfolios during the three months ended February 28, 2013 and February 29, 2012 were as follows:

(In thousands)	February 28, 2013			February 29, 2012
Accretable yield, beginning of period	$	112,899		209,480
Additions	18,949			1,838
Deletions	(19,915		)	(10,635	)
Accretions	(13,845		)	(21,403	)
Accretable yield, end of period	$	98,088		179,280

Additions primarily represent reclasses from nonaccretable yield to accretable yield on the portfolios. Deletions represent loan impairments and disposal of loans, which includes foreclosure of underlying collateral and result in the removal of the loans from the accretable yield portfolios.

Nonaccrual Loans

The following tables represent nonaccrual loans in the FDIC Portfolios and Bank Portfolios accounted for under ASC 310-10 aggregated by collateral type:

February 28, 2013

			Recorded Investment
(In thousands)	Unpaid Principal Balance		With Allowance	Without Allowance	Total  Recorded Investment
Land	$	8,659	2,429	1,321	3,750
Single family homes	17,748		6,730	2,316	9,046
Commercial properties	32,638		692	20,614	21,306
Loans receivable	$	59,045	9,851	24,251	34,102

November 30, 2012

			Recorded Investment
(In thousands)	Unpaid Principal  Balance		With Allowance	Without Allowance	Total  Recorded Investment
Land	$	23,163	4,983	2,844	7,827
Single family homes	18,966		8,311	2,244	10,555
Commercial properties	35,996		1,006	20,947	21,953
Loans receivable	$	78,125	14,300	26,035	40,335

Risk Indicators

Accrual and nonaccrual loans receivable by risk categories were as follows:

February 28, 2013

(In thousands)	Accrual		Nonaccrual	Total
Land	$	198,344	3,750	202,094
Single family homes	73,953		9,046	82,999
Commercial properties	68,206		21,306	89,512
Multi-family homes	17,200		—	17,200
Other	14,402		—	14,402
Loans receivable	$	372,105	34,102	406,207

November 30, 2012

(In thousands)	Accrual		Nonaccrual	Total
Land	$	208,268	7,827	216,095
Single family homes	82,652		10,555	93,207
Commercial properties	74,273		21,953	96,226
Multi-family homes	12,776		—	12,776
Other	18,231		—	18,231
Loans receivable	$	396,200	40,335	436,535

Changes In Real Estate Owned

The following tables present the activity in REO: 

	Three Months Ended
	February 28,			February 29,
(In thousands)	2013			2012
REO - held-for-sale, beginning of period	$	134,161		143,677
Additions	594			1,134
Improvements	1,016			3,963
Sales	(25,780		)	(36,844	)
Impairments	(699		)	(1,240	)
Transfers to/from held-and-used, net (1)	69,386			(9,111	)
REO - held-for-sale, end of period	$	178,678		101,579

	Three Months Ended
	February 28,			February 29,
(In thousands)	2013			2012
REO - held-and-used, net, beginning of period	$	601,022		582,111
Additions	16,192			46,241
Improvements	700			—
Sales	—			(981	)
Impairments	(96		)	(2,597	)
Depreciation	(1,159		)	(3,315	)
Transfers to/from held-for-sale (1)	(69,386		)	9,111
REO - held-and-used, net, end of period	$	547,273		630,570

(1) During the three months ended February 28, 2013 and February 29, 2012, the Rialto segment transferred certain properties to/from REO held-and-used, net to/from REO held-for-sale as a result of changes in the disposition strategy of the real estate assets.

Condensed Financial Information By Equity Method Investment, Balance Sheets

Balance Sheets

(In thousands)	February 28, 2013		November 30, 2012
Assets:
Cash and cash equivalents	$	82,820	299,172
Loans receivable	388,033		361,286
Real estate owned	187,413		161,964
Investment securities	234,505		182,399
Investments in real estate partnerships	127,931		72,903
Other assets	182,528		199,839
	$	1,203,230	1,277,563
Liabilities and equity:
Accounts payable and other liabilities	$	145,115	155,928
Notes payable	80,213		120,431
Partner loans	163,516		163,516
Equity	814,386		837,688
	$	1,203,230	1,277,563

Condensed Financial Information By Equity Method Investment, Statements Of Operations

Summarized condensed financial information on a combined 100% basis related to Lennar Homebuilding’s unconsolidated entities that are accounted for by the equity method was as follows:

Statements of Operations

	Three Months Ended
	February 28,			February 29,
(In thousands)	2013			2012
Revenues	$	81,224		82,644
Costs and expenses	81,637			83,422
Other income	13,361			—
Net earnings (loss) of unconsolidated entities	$	12,948		(778	)
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities	$	(867	)	1,083

Statements of Operations

	Three Months Ended
	February 28,		February 29,
(In thousands)	2013		2012
Revenues	$	53,343	122,405
Costs and expenses	59,114		51,185
Other income, net (1)	56,001		266,440
Net earnings of unconsolidated entities	$	50,230	337,660
Rialto Investments equity in earnings from unconsolidated entities	$	6,173	18,458

(1) Other income, net, for the three months ended February 29, 2012 includes the AB PPIP Fund's mark-to-market unrealized gains and unrealized losses, all of which the Company’s portion is a small percentage

XML

Lennar Financial Services Segment (Tables)

3 Months Ended

Feb. 28, 2013

Lennar Financial Services Segment [Abstract]

Schedule Of Assets And Liabilities

The assets and liabilities related to the Lennar Financial Services segment were as follows:

(In thousands)	February 28, 2013		November 30, 2012
Assets:
Cash and cash equivalents	$	65,200	58,566
Restricted cash	12,566		12,972
Receivables, net (1)	171,580		172,230
Loans held-for-sale (2)	334,658		502,318
Loans held-for-investment, net	23,593		23,982
Investments held-to-maturity	62,746		63,924
Goodwill	34,046		34,046
Other (3)	43,776		44,957
	$	748,165	912,995
Liabilities:
Notes and other debts payable	$	311,933	457,994
Other (4)	162,616		172,978
	$	474,549	630,972

(1) Receivables, net primarily relate to loans sold to investors for which the Company had not yet been paid as of February 28, 2013 and November 30, 2012, respectively.

(2) Loans held-for-sale relate to unsold loans carried at fair value.

(3) Other assets include mortgage loan commitments carried at fair value of $12.0 million and $12.7 million as of February 28, 2013 and November 30, 2012, respectively.

(4) Other liabilities include $75.7 million and $76.1 million as of February 28, 2013 and November 30, 2012, respectively, of certain of the Company’s self-insurance reserves related to general liability and workers’ compensation. Other liabilities also include forward contracts carried at fair value of $2.1 million and $2.6 million as of February 28, 2013 and November 30, 2012

Schedule Of Loan Origination Liabilities

The activity in the Company’s loan origination liabilities was as follows:

	Three Months Ended
	February 28,			February 29,
(In thousands)	2013			2012
Loan origination liabilities, beginning of period	$	7,250		6,050
Provision for losses during the period	413			93
Adjustments to pre-existing provisions for losses from changes in estimates	96			8
Payments/settlements	(153		)	(190	)
Loan origination liabilities, end of period	$	7,606		5,961

XML

Rialto Investments Segment (Loans Receivable By Aggregate Collateral Type) (Details) (USD $) In Thousands, unless otherwise specified	Feb. 28, 2013		Nov. 30, 2012
Rialto Investments [Member]
Segment Reporting Information [Line Items]
Loans receivable, net	$ 406,207	[1]	$ 436,535	[1]
Land [Member]
Segment Reporting Information [Line Items]
Loans receivable, net	202,094		216,095
Single Family Homes [Member]
Segment Reporting Information [Line Items]
Loans receivable, net	82,999		93,207
Commercial Properties [Member]
Segment Reporting Information [Line Items]
Loans receivable, net	89,512		96,226
Multi Family Homes [Member]
Segment Reporting Information [Line Items]
Loans receivable, net	17,200		12,776
Other [Member]
Segment Reporting Information [Line Items]
Loans receivable, net	$ 14,402		$ 18,231

[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 February 28, 2013, total assets include $1,837.4 million related to consolidated VIEs of which $15.9 million is included in Lennar Homebuilding cash and cash equivalents, $6.0 million in Lennar Homebuilding receivables, net, $65.6 million in Lennar Homebuilding finished homes and construction in progress, $485.6 million in Lennar Homebuilding land and land under development, $65.9 million in Lennar Homebuilding consolidated inventory not owned, $44.5 million in Lennar Homebuilding investments in unconsolidated entities, $223.2 million in Lennar Homebuilding other assets, $63.3 million in Rialto Investments cash and cash equivalents, $4.7 million in Rialto Investments defeasance cash to retire notes payable, $318.5 million in Rialto Investments loans receivable, net, $115.3 million in Rialto Investments real estate owned, held-for-sale, $422.8 million in Rialto Investments real estate owned, held-and-used, net $0.6 million in Rialto Investments in unconsolidated entities and $5.5 million in Rialto Investments other assets.As of November 30, 2012, total assets include $2,128.6 million related to consolidated VIEs of which $13.2 million is included in Lennar Homebuilding cash and cash equivalents, $6.0 million in Lennar Homebuilding receivables, net, $57.4 million in Lennar Homebuilding finished homes and construction in progress, $482.6 million in Lennar Homebuilding land and land under development, $65.2 million in Lennar Homebuilding consolidated inventory not owned, $43.7 million in Lennar Homebuilding investments in unconsolidated entities, $224.1 million in Lennar Homebuilding other assets, $104.8 million in Rialto Investments cash and cash equivalents, $223.8 million in Rialto Investments defeasance cash to retire notes payable, $350.2 million in Rialto Investments loans receivable, net, $94.2 million in Rialto Investments real estate owned, held-for-sale, $454.9 million in Rialto Investments real estate owned, held-and-used, net, $0.7 million in Rialto Investments in unconsolidated entities and $7.8 million in Rialto Investments other assets.

XML

Lennar Homebuilding Investments In Unconsolidated Entities (Total Debt Of Unconsolidated Entities) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Feb. 28, 2013	Nov. 30, 2012
Schedule of Equity Method Investments [Line Items]
Net Recourse Exposure	$ 42,273	$ 49,889
Joint And Several Reimbursement Agreements With Companys Partners	(13,500)	(16,826)
The Company's maximum recourse exposure	55,773	66,715
Lennar Homebuilding [Member]
Schedule of Equity Method Investments [Line Items]
Net Recourse Exposure	42,273	49,889
Joint And Several Reimbursement Agreements With Companys Partners	13,500	16,826
The Company's maximum recourse exposure	55,773	66,715
Non-recourse bank debt and other debt (partner's share of several recourse)	93,066	114,900
Non-recourse land seller debt or other debt	18,488	26,340
Non-recourse debt with completion guarantees	464,044	458,418
Non-recourse debt without completion guarantees	86,783	93,430
Non-recourse debt to the Company	662,381	693,088
Total debt	$ 718,154	$ 759,803
The Company's maximum recourse exposure as a % of total JV debt	8.00%	9.00%

XML

Lennar Homebuilding Senior Notes And Other Debts Payable (Tables)

3 Months Ended

Feb. 28, 2013

Debt Disclosure [Abstract]

Schedule Of Senior Notes And Other Debts Payable

(Dollars in thousands)	February 28, 2013		November 30, 2012
5.95% senior notes due 2013	$	62,932	62,932
5.50% senior notes due 2014	249,294		249,294
5.60% senior notes due 2015	500,651		500,769
6.50% senior notes due 2016	249,868		249,851
4.75% senior notes due 2017	400,000		400,000
12.25% senior notes due 2017	394,871		394,457
4.125% senior notes due 2018	274,995		—
6.95% senior notes due 2018	248,017		247,873
2.00% convertible senior notes due 2020	276,500		276,500
2.75% convertible senior notes due 2020	405,331		401,787
3.25% convertible senior notes due 2021	400,000		400,000
4.750% senior notes due 2022	521,628		350,000
Mortgages notes on land and other debt	521,575		471,588
	$	4,505,662	4,005,051

XML

Product Warranty (Tables)

3 Months Ended

Feb. 28, 2013

Product Warranties Disclosures [Abstract]

Schedule Of Product Warranty Reserve

The activity in the Company’s warranty reserve was as follows:

	Three Months Ended
	February 28,			February 29,
(In thousands)	2013			2012
Warranty reserve, beginning of period	$	84,188		88,120
Warranties issued during the period	8,759			6,855
Adjustments to pre-existing warranties from changes in estimates	2,949			1,367
Payments	(10,688		)	(10,625	)
Warranty reserve, end of period	$	85,208		85,717

XML

Lennar Homebuilding Investments In Unconsolidated Entities

3 Months Ended

Feb. 28, 2013

Equity Method Investments and Joint Ventures [Abstract]

Lennar Homebuilding Investments In Unconsolidated Entities

Lennar Homebuilding Investments in Unconsolidated Entities

Summarized condensed financial information on a combined 100% basis related to Lennar Homebuilding’s unconsolidated entities that are accounted for by the equity method was as follows:

Statements of Operations

	Three Months Ended
	February 28,			February 29,
(In thousands)	2013			2012
Revenues	$	81,224		82,644
Costs and expenses	81,637			83,422
Other income	13,361			—
Net earnings (loss) of unconsolidated entities	$	12,948		(778	)
Lennar Homebuilding equity in earnings (loss) from unconsolidated entities	$	(867	)	1,083

Balance Sheets

(In thousands)	February 28, 2013		November 30, 2012
Assets:
Cash and cash equivalents	$	167,418	157,340
Inventories	2,802,210		2,792,064
Other assets	183,024		250,940
	$	3,152,652	3,200,344
Liabilities and equity:
Accounts payable and other liabilities	$	255,369	310,496
Debt	718,154		759,803
Equity	2,179,129		2,130,045
	$	3,152,652	3,200,344

As of February 28, 2013 and November 30, 2012, the Company’s recorded investments in Lennar Homebuilding unconsolidated entities were $577.3 million and $565.4 million, respectively, while the underlying equity in Lennar Homebuilding unconsolidated entities partners’ net assets as of February 28, 2013 and November 30, 2012 was $690.6 million, and $681.6 million, respectively, primarily as a result of the Company buying its interest in a partner's equity in a Lennar Homebuilding unconsolidated entity at a discount to book value.

In fiscal 2007, the Company sold a portfolio of land to a strategic land investment venture with Morgan Stanley Real Estate Fund II, L.P., an affiliate of Morgan Stanley & Co., Inc., in which the Company has approximately a 20% ownership interest and 50% voting rights. Due to the nature of the Company’s continuing involvement, the transaction did not qualify as a sale by the Company under GAAP; thus, the inventory has remained on the Company’s condensed consolidated balance sheet in consolidated inventory not owned. As of February 28, 2013 and November 30, 2012, the portfolio of land (including land development costs) of $255.8 million and $264.9 million, respectively, is also reflected as inventory in the summarized condensed financial information related to Lennar Homebuilding’s unconsolidated entities.

The Lennar 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 summary of the Company’s net recourse exposure related to Lennar Homebuilding unconsolidated entities in which the Company has investments was as follows:

(In thousands)	February 28, 2013			November 30, 2012
Several recourse debt - repayment	$	40,773		48,020
Joint and several recourse debt - repayment	15,000			18,695
The Company’s maximum recourse exposure	55,773			66,715
Less: joint and several reimbursement agreements with the Company’s partners	(13,500		)	(16,826	)
The Company’s net recourse exposure	$	42,273		49,889

During the three months ended February 28, 2013, the Company’s maximum recourse exposure related to indebtedness of Lennar Homebuilding unconsolidated entities decreased by $10.9 million primarily related to the joint ventures selling assets and other transactions.

The recourse debt exposure in the previous table represents the Company’s maximum recourse exposure to loss from guarantees and does not take into account the underlying value of the collateral or the other assets of the borrowers that are available to repay the debt or to reimburse the Company for any payments on its guarantees. The Lennar Homebuilding unconsolidated entities that have recourse debt have a significant amount of assets and equity. The summarized balance sheets of Lennar Homebuilding’s unconsolidated entities with recourse debt were as follows:

(In thousands)	February 28, 2013		November 30, 2012
Assets	$	1,811,292	1,843,163
Liabilities	$	732,346	765,295
Equity	$	1,078,946	1,077,868

In addition, in most instances in which the Company has guaranteed debt of a Lennar Homebuilding unconsolidated entity, the Company’s partners have also guaranteed that debt and are required to contribute their share of the guarantee payments. Historically, the Company has had repayment guarantees and/or maintenance guarantees. 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 the event of default, if the Company’s venture partner does not have adequate financial resources to meet its obligations under the reimbursement agreement, the Company may be liable for more than its proportionate share, up to its maximum recourse exposure, which is the full amount covered by the joint and several guarantee. The maintenance guarantees only apply if the value of the collateral (generally land and improvements) is less than a specified percentage of the loan balance. If the Company is required to make a payment under a maintenance guarantee to bring the value of the collateral above the specified percentage of the loan balance, the payment would constitute a capital contribution or loan to the Lennar 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 February 28, 2013 and November 30, 2012, the Company does not have any maintenance guarantees related to its Lennar Homebuilding unconsolidated entities.

In connection with many of the loans to Lennar 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.

During the three months ended February 28, 2013, there were no loan paydowns by Lennar relating to recourse debt. During the three months ended February 29, 2012, there were other loan paydowns of $3.4 million. During both the three months ended February 28, 2013 and February 29, 2012, there were no payments under completion guarantees.

As of February 28, 2013, the fair values of the repayment guarantees and completion guarantees were not material. The Company believes that as of February 28, 2013, in the event it becomes legally obligated to perform under a guarantee of the obligation of a Lennar Homebuilding unconsolidated entity due to a triggering event under a guarantee, most of the time the collateral should 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 for its joint ventures (see Note 11).

The total debt of the Lennar Homebuilding unconsolidated entities in which the Company has investments was as follows:

(In thousands)	February 28, 2013			November 30, 2012
The Company’s net recourse exposure	$	42,273		49,889
Reimbursement agreements from partners	13,500			16,826
The Company’s maximum recourse exposure	$	55,773		66,715
Non-recourse bank debt and other debt (partner’s share of several recourse)	$	93,066		114,900
Non-recourse land seller debt or other debt	18,488			26,340
Non-recourse debt with completion guarantees	464,044			458,418
Non-recourse debt without completion guarantees	86,783			93,430
Non-recourse debt to the Company	662,381			693,088
Total debt	$	718,154		759,803
The Company’s maximum recourse exposure as a % of total JV debt	8		%	9	%

XML

Share-Based Payment (Tables)

3 Months Ended

Feb. 28, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Compensation Expense, Share-Based Payment Awards

Compensation expense related to the Company’s share-based payment awards was as follows:

	Three Months Ended
	February 28,		February 29,
(In thousands)	2013		2012
Stock options	$	—	885
Nonvested shares	6,486		7,276
Total compensation expense for share-based awards	$	6,486	8,161

XML

Lennar Homebuilding Investments In Unconsolidated Entities (Statements Of Operations) (Details) (Lennar Homebuilding [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended
	Feb. 28, 2013	Feb. 29, 2012
Lennar Homebuilding [Member]
Schedule of Equity Method Investments [Line Items]
Total revenues	$ 81,224	$ 82,644
Costs and expenses	81,637	83,422
Equity Method Investment Summarized Financial Information Other Income	13,361	0
Net earnings (loss) of unconsolidated entities	12,948	(778)
Equity in earnings (loss) from unconsolidated entities	$ (867)	$ 1,083

XML

Rialto Investments Segment (Assets And Liabilities Related To Rialto Segment) (Details) (USD $) In Thousands, unless otherwise specified	Feb. 28, 2013		Nov. 30, 2012		Feb. 29, 2012	Nov. 30, 2011
Segment Reporting Information [Line Items]
Cash and cash equivalents	$ 1,242,116		$ 1,310,743		$ 922,906	$ 1,163,604
Total assets	10,432,269	[1]	10,362,206	[1]
Notes payable	4,505,662		4,005,051
Total liabilities	6,362,629	[2]	6,360,998	[2]
Rialto Investments [Member]
Segment Reporting Information [Line Items]
Cash and cash equivalents	64,188	[1]	105,310	[1]	74,186
Defeasance cash to retire notes payable	4,655	[1]	223,813	[1]
Loans receivable, net	406,207	[1]	436,535	[1]
Real estate owned - held-for-sale	178,678	[1]	134,161	[1]
Real estate owned - held-and-used, net	547,273	[1]	601,022	[1]
Investments in unconsolidated entities	106,609	[1]	108,140	[1]
Investments held-to-maturity	15,262	[1]	15,012	[1]
Other assets	19,361	[1]	23,367	[1]
Total assets	1,342,233	[1],[3]	1,647,360	[1],[3]
Notes payable	270,357	[2]	574,480	[2]
Other liabilities	14,809	[2]	26,122	[2]
Total liabilities	$ 285,166	[2]	$ 600,602	[2]

[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 February 28, 2013, total assets include $1,837.4 million related to consolidated VIEs of which $15.9 million is included in Lennar Homebuilding cash and cash equivalents, $6.0 million in Lennar Homebuilding receivables, net, $65.6 million in Lennar Homebuilding finished homes and construction in progress, $485.6 million in Lennar Homebuilding land and land under development, $65.9 million in Lennar Homebuilding consolidated inventory not owned, $44.5 million in Lennar Homebuilding investments in unconsolidated entities, $223.2 million in Lennar Homebuilding other assets, $63.3 million in Rialto Investments cash and cash equivalents, $4.7 million in Rialto Investments defeasance cash to retire notes payable, $318.5 million in Rialto Investments loans receivable, net, $115.3 million in Rialto Investments real estate owned, held-for-sale, $422.8 million in Rialto Investments real estate owned, held-and-used, net $0.6 million in Rialto Investments in unconsolidated entities and $5.5 million in Rialto Investments other assets.As of November 30, 2012, total assets include $2,128.6 million related to consolidated VIEs of which $13.2 million is included in Lennar Homebuilding cash and cash equivalents, $6.0 million in Lennar Homebuilding receivables, net, $57.4 million in Lennar Homebuilding finished homes and construction in progress, $482.6 million in Lennar Homebuilding land and land under development, $65.2 million in Lennar Homebuilding consolidated inventory not owned, $43.7 million in Lennar Homebuilding investments in unconsolidated entities, $224.1 million in Lennar Homebuilding other assets, $104.8 million in Rialto Investments cash and cash equivalents, $223.8 million in Rialto Investments defeasance cash to retire notes payable, $350.2 million in Rialto Investments loans receivable, net, $94.2 million in Rialto Investments real estate owned, held-for-sale, $454.9 million in Rialto Investments real estate owned, held-and-used, net, $0.7 million in Rialto Investments in unconsolidated entities and $7.8 million in Rialto Investments other assets.

[2] As of February 28, 2013, total liabilities include $435.3 million related to consolidated VIEs as to which there was no recourse against the Company, of which $10.1 million is included in Lennar Homebuilding accounts payable, $35.8 million in Lennar Homebuilding liabilities related to consolidated inventory not owned, $186.7 million in Lennar Homebuilding senior notes and other debts payable, $14.5 million in Lennar Homebuilding other liabilities and $188.2 million in Rialto Investments notes payable and other liabilities.As of November 30, 2012, total liabilities include $737.2 million related to consolidated VIEs as to which there was no recourse against the Company, of which $10.6 million is included in Lennar Homebuilding accounts payable, $35.9 million in Lennar Homebuilding liabilities related to consolidated inventory not owned, $181.6 million in Lennar Homebuilding senior notes and other debts payable, $15.7 million in Lennar Homebuilding other liabilities and $493.4 million in Rialto Investments notes payable and other liabilities.

[3] Consists primarily of assets of consolidated VIEs (see Note 8).

XML

Financial Instruments (Reconciliation Of Beginning And Ending Balance For The Company's Level 3 Recurring Fair Value Measurements) (Details) (Available-for-sale Securities [Member], Lennar Homebuilding [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended
	Feb. 28, 2013		Feb. 29, 2012
Available-for-sale Securities [Member] | Lennar Homebuilding [Member]
Investments available-for-sale, beginning of period	$ 19,591		$ 42,892
Purchases and other	12,227	[1]	14,928	[1]
Sales	0		(6,436)
Settlements	0	[2]	(33,148)	[2]
Investments available-for-sale, end of period	$ 31,818		$ 18,236

[1] Represents investments in community development district bonds that mature at various dates between 2022 and 2042.

[2] The investments available-for-sale that were settled during the three months ended February 29, 2012 related to investments in community development district bonds, which were in default by the borrower and regarding which the Company foreclosed on the underlying real estate collateral. Therefore, these investments were reclassified from other assets to land and land under development.

XML

Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Feb. 28, 2013		Nov. 30, 2012
ASSETS
Cash and cash equivalents	$ 1,242,116		$ 1,310,743
Inventories:
Total assets	10,432,269	[1]	10,362,206	[1]
LIABILITIES AND EQUITY
Senior notes and other debts payable	4,505,662		4,005,051
Total liabilities	6,362,629	[2]	6,360,998	[2]
Stockholders' equity:
Preferred stock	0	[2]	0	[2]
Additional paid-in capital	2,436,078	[2]	2,421,941	[2]
Retained earnings	1,654,930	[2]	1,605,131	[2]
Treasury stock, at cost; August 31, 2012 - 11,702,017 Class A common shares and 1,679,620 Class B common shares; November 30, 2011 - 12,000,017 Class A common shares and 1,679,620 Class B common shares	(615,698)	[2]	(632,846)	[2]
Total stockholders' equity	3,495,881	[2]	3,414,764	[2]
Noncontrolling interests	573,759	[2]	586,444	[2]
Total equity	4,069,640	[2]	4,001,208	[2]
Total liabilities and equity	10,432,269	[2]	10,362,206	[2]
Lennar Homebuilding [Member]
ASSETS
Cash and cash equivalents	1,112,728	[1]	1,146,867	[1]
Restricted cash	8,085	[1]	8,096	[1]
Receivables, net	58,175	[1]	53,745	[1]
Inventories:
Finished homes and construction in progress	1,945,434	[1]	1,625,048	[1]
Land and land under development	3,341,069	[1]	3,119,804	[1]
Consolidated inventory not owned	325,473	[1]	326,861	[1]
Total inventories	5,611,976	[1]	5,071,713	[1]
Investments in unconsolidated entities	577,342	[1]	565,360	[1]
Other assets	973,565	[1]	956,070	[1]
Total assets	8,341,871	[1]	7,801,851	[1]
LIABILITIES AND EQUITY
Accounts payable	229,880	[2]	220,690	[2]
Liabilities related to consolidated inventory not owned	266,803	[2]	268,159	[2]
Senior notes and other debts payable	4,505,662	[2]	4,005,051	[2]
Other liabilities	600,569	[2]	635,524	[2]
Total liabilities	5,602,914	[2]	5,129,424	[2]
Rialto Investments [Member]
ASSETS
Cash and cash equivalents	64,188	[1]	105,310	[1]
Inventories:
Investments in unconsolidated entities	106,609	[1]	108,140	[1]
Other assets	34,623	[1]	38,379	[1]
Defeasance cash to retire notes payable	4,655	[1]	223,813	[1]
Loans receivable, net	406,207	[1]	436,535	[1]
Real estate owned, held-for-sale	178,678	[1]	134,161	[1]
Real estate owned, held-and-used, net	547,273	[1]	601,022	[1]
Total assets	1,342,233	[1],[3]	1,647,360	[1],[3]
LIABILITIES AND EQUITY
Senior notes and other debts payable	270,357	[2]	574,480	[2]
Other liabilities	14,809	[2]	26,122	[2]
Total liabilities	285,166	[2]	600,602	[2]
Lennar Financial Services [Member]
ASSETS
Cash and cash equivalents	65,200		58,566
Restricted cash	12,566		12,972
Receivables, net	171,580	[4]	172,230	[4]
Inventories:
Other assets	43,776	[5]	44,957	[5]
Total assets	748,165	[1]	912,995	[1]
LIABILITIES AND EQUITY
Other liabilities	162,616	[6]	172,978	[6]
Total liabilities	474,549	[2]	630,972	[2]
Class A Common Stock [Member]
Stockholders' equity:
Common stock	17,273	[2]	17,240	[2]
Total equity	17,273		17,240
Class B Common Stock [Member]
Stockholders' equity:
Common stock	3,298	[2]	3,298	[2]
Total equity	$ 3,298		$ 3,298

[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 February 28, 2013, total assets include $1,837.4 million related to consolidated VIEs of which $15.9 million is included in Lennar Homebuilding cash and cash equivalents, $6.0 million in Lennar Homebuilding receivables, net, $65.6 million in Lennar Homebuilding finished homes and construction in progress, $485.6 million in Lennar Homebuilding land and land under development, $65.9 million in Lennar Homebuilding consolidated inventory not owned, $44.5 million in Lennar Homebuilding investments in unconsolidated entities, $223.2 million in Lennar Homebuilding other assets, $63.3 million in Rialto Investments cash and cash equivalents, $4.7 million in Rialto Investments defeasance cash to retire notes payable, $318.5 million in Rialto Investments loans receivable, net, $115.3 million in Rialto Investments real estate owned, held-for-sale, $422.8 million in Rialto Investments real estate owned, held-and-used, net $0.6 million in Rialto Investments in unconsolidated entities and $5.5 million in Rialto Investments other assets.As of November 30, 2012, total assets include $2,128.6 million related to consolidated VIEs of which $13.2 million is included in Lennar Homebuilding cash and cash equivalents, $6.0 million in Lennar Homebuilding receivables, net, $57.4 million in Lennar Homebuilding finished homes and construction in progress, $482.6 million in Lennar Homebuilding land and land under development, $65.2 million in Lennar Homebuilding consolidated inventory not owned, $43.7 million in Lennar Homebuilding investments in unconsolidated entities, $224.1 million in Lennar Homebuilding other assets, $104.8 million in Rialto Investments cash and cash equivalents, $223.8 million in Rialto Investments defeasance cash to retire notes payable, $350.2 million in Rialto Investments loans receivable, net, $94.2 million in Rialto Investments real estate owned, held-for-sale, $454.9 million in Rialto Investments real estate owned, held-and-used, net, $0.7 million in Rialto Investments in unconsolidated entities and $7.8 million in Rialto Investments other assets.

[2] As of February 28, 2013, total liabilities include $435.3 million related to consolidated VIEs as to which there was no recourse against the Company, of which $10.1 million is included in Lennar Homebuilding accounts payable, $35.8 million in Lennar Homebuilding liabilities related to consolidated inventory not owned, $186.7 million in Lennar Homebuilding senior notes and other debts payable, $14.5 million in Lennar Homebuilding other liabilities and $188.2 million in Rialto Investments notes payable and other liabilities.As of November 30, 2012, total liabilities include $737.2 million related to consolidated VIEs as to which there was no recourse against the Company, of which $10.6 million is included in Lennar Homebuilding accounts payable, $35.9 million in Lennar Homebuilding liabilities related to consolidated inventory not owned, $181.6 million in Lennar Homebuilding senior notes and other debts payable, $15.7 million in Lennar Homebuilding other liabilities and $493.4 million in Rialto Investments notes payable and other liabilities.

[3] Consists primarily of assets of consolidated VIEs (see Note 8).

[4] Receivables, net primarily relate to loans sold to investors for which the Company had not yet been paid as of February 28, 2013 and November 30, 2012, respectively.

[5] Other assets include mortgage loan commitments carried at fair value of $12.0 million and $12.7 million as of February 28, 2013 and November 30, 2012

[6] Other liabilities include $75.7 million and $76.1 million as of February 28, 2013 and November 30, 2012, respectively, of certain of the Company’s self-insurance reserves related to general liability and workers’ compensation. Other liabilities also include forward contracts carried at fair value of $2.1 million and $2.6 million as of February 28, 2013 and November 30, 2012

XML

Stockholders' Equity (Narrative) (Details) In Millions, unless otherwise specified	3 Months Ended
	Feb. 28, 2013	Feb. 29, 2012
Stockholders' Equity Note [Abstract]
Maximum noncontrolling interest percentage in subsidiaries	100.00%	100.00%
Maximum number of shares to repurchase	20.0
Repurchases of common stock	0	0
Common stock that can be repurchased in the future	6.2
Shares Paid for Tax Withholding for Share Based Compensation	0.5	0.3

XML

Basis Of Presentation

3 Months Ended

Feb. 28, 2013

Basis Of Presentation [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 VIEs (see Note 15) 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, 2012. 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 months ended February 28, 2013 are not necessarily indicative of the results to be expected for the full year.

Rialto Management Fees Revenue

The Rialto Investments segment provides services to a variety of legal entities and investment vehicles such as funds, joint ventures, co-invests, and other private equity structures to manage their respective investments. As a result, Rialto earns and receives management fees, underwriting fees, due diligence fees and liquidation fees on asset resolutions. The management fees and other forms of compensation to Rialto vary on a deal by deal basis and can increase after meeting certain investment hurdles. Management fees related to the Rialto Investments segment are included in Rialto Investments revenue and are recorded when contract terms are met, fees are determinable and collectability is reasonably assured. We believe the way we record Rialto Investments' management fees revenue is a significant accounting policy because it is a significant portion of Rialto Investments segment's revenues and will continue to grow in the future as the segment manages more assets.

Reclassifications

Certain prior year amounts in the condensed consolidated financial statements have been reclassified to conform with the 2013 presentation. These reclassifications had no impact on the Company’s results of operations.

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.

XML

Rialto Investments Segment (Nonaccrual Loans) (Details) (USD $) In Thousands, unless otherwise specified	Feb. 28, 2013	Nov. 30, 2012
Rialto Investments [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Recorded Investment	$ 34,102	$ 40,335
Land [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid Principal Balance	8,659	23,163
Impaired Financing Receivable, with Related Allowance, Recorded Investment	2,429	4,983
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	1,321	2,844
Total Recorded Investment	3,750	7,827
Single Family Homes [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid Principal Balance	17,748	18,966
Impaired Financing Receivable, with Related Allowance, Recorded Investment	6,730	8,311
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	2,316	2,244
Total Recorded Investment	9,046	10,555
Commercial Properties [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid Principal Balance	32,638	35,996
Impaired Financing Receivable, with Related Allowance, Recorded Investment	692	1,006
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	20,614	20,947
Total Recorded Investment	21,306	21,953
Loans Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unpaid Principal Balance	59,045	78,125
Impaired Financing Receivable, with Related Allowance, Recorded Investment	9,851	14,300
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	24,251	26,035
Total Recorded Investment	$ 34,102	$ 40,335

XML

Supplemental Financial Information (Tables)

3 Months Ended

Feb. 28, 2013

Supplemental Financial Information [Abstract]

Consolidating Balance Sheet

Condensed Consolidating Balance Sheet

February 28, 2013

(In thousands)	Lennar Corporation		Guarantor Subsidiaries	Non-Guarantor Subsidiaries	Eliminations		Total
ASSETS
Lennar Homebuilding:
Cash and cash equivalents, restricted cash and      receivables, net	$	934,338	222,307	22,343	—		1,178,988
Inventories	—		5,061,731	550,245	—		5,611,976
Investments in unconsolidated entities	—		532,882	44,460	—		577,342
Other assets	51,269		721,073	222,816	(21,593	)	973,565
Investments in subsidiaries	3,508,365		796,925	—	(4,305,290	)	—
Intercompany	3,236,190		—	—	(3,236,190	)	—
	7,730,162		7,334,918	839,864	(7,563,073	)	8,341,871
Rialto Investments	—		—	1,342,233	—		1,342,233
Lennar Financial Services	—		73,130	675,035	—		748,165
Total assets	$	7,730,162	7,408,048	2,857,132	(7,563,073	)	10,432,269
LIABILITIES AND EQUITY
Lennar Homebuilding:
Accounts payable and other liabilities	$	250,194	566,996	34,852	(21,593	)	830,449
Liabilities related to consolidated inventory not owned	—		266,803	—	—		266,803
Senior notes and other debts payable	3,984,087		286,081	235,494	—		4,505,662
Intercompany	—		2,751,152	485,038	(3,236,190	)	—
	4,234,281		3,871,032	755,384	(3,257,783	)	5,602,914
Rialto Investments	—		—	285,166	—		285,166
Lennar Financial Services	—		28,651	445,898	—		474,549
Total liabilities	4,234,281		3,899,683	1,486,448	(3,257,783	)	6,362,629
Stockholders’ equity	3,495,881		3,508,365	796,925	(4,305,290	)	3,495,881
Noncontrolling interests	—		—	573,759	—		573,759
Total equity	3,495,881		3,508,365	1,370,684	(4,305,290	)	4,069,640
Total liabilities and equity	$	7,730,162	7,408,048	2,857,132	(7,563,073	)	10,432,269

Condensed Consolidating Balance Sheet

November 30, 2012

(In thousands)	Lennar Corporation			Guarantor Subsidiaries	Non-Guarantor Subsidiaries	Eliminations		Total
ASSETS
Lennar Homebuilding:
Cash and cash equivalents, restricted cash and      receivables, net	$	962,116		226,047	20,545	—		1,208,708
Inventories	—			4,532,755	538,958	—		5,071,713
Investments in unconsolidated entities	—			521,662	43,698	—		565,360
Other assets	55,625			677,692	222,753	—		956,070
Investments in subsidiaries	3,488,054			770,119	—	(4,258,173	)	—
	4,505,795			6,728,275	825,954	(4,258,173	)	7,801,851
Rialto Investments	—			—	1,647,360	—		1,647,360
Lennar Financial Services	—			77,637	835,358	—		912,995
Total assets	$	4,505,795		6,805,912	3,308,672	(4,258,173	)	10,362,206
LIABILITIES AND EQUITY
Lennar Homebuilding:
Accounts payable and other liabilities	$	279,926		533,882	42,406	—		856,214
Liabilities related to consolidated inventory not owned	—			268,159	—	—		268,159
Senior notes and other debts payable	3,533,463			245,665	225,923	—		4,005,051
Intercompany	(2,722,358		)	2,239,096	483,262	—		—
	1,091,031			3,286,802	751,591	—		5,129,424
Rialto Investments	—			—	600,602	—		600,602
Lennar Financial Services	—			31,056	599,916	—		630,972
Total liabilities	1,091,031			3,317,858	1,952,109	—		6,360,998
Stockholders’ equity	3,414,764			3,488,054	770,119	(4,258,173	)	3,414,764
Noncontrolling interests	—			—	586,444	—		586,444
Total equity	3,414,764			3,488,054	1,356,563	(4,258,173	)	4,001,208
Total liabilities and equity	$	4,505,795		6,805,912	3,308,672	(4,258,173	)	10,362,206

Consolidating Statement Of Operations

Condensed Consolidating Statement of Operations

Three Months EndedFebruary 28, 2013

(In thousands)	Lennar Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Total
Revenues:
Lennar Homebuilding	$	—		868,444		—		—		868,444
Lennar Financial Services	—			36,076		65,010		(5,206	)	95,880
Rialto Investments	—			—		25,622		—		25,622
Total revenues	—			904,520		90,632		(5,206	)	989,946
Cost and expenses:
Lennar Homebuilding	—			776,024		3,022		(372	)	778,674
Lennar Financial Services	—			37,018		47,656		(4,896	)	79,778
Rialto Investments	—			—		31,771		—		31,771
Corporate general and administrative	30,005			—		—		1,265		31,270
Total costs and expenses	30,005			813,042		82,449		(4,003	)	921,493
Lennar Homebuilding equity in earnings (loss) from     unconsolidated entities	—			(1,490	)	623		—		(867	)
Lennar Homebuilding other income, net	228			4,256		—		(218	)	4,266
Other interest expense	(1,421		)	(26,031	)	—		1,421		(26,031	)
Rialto Investments equity in earnings from     unconsolidated entities	—			—		6,173		—		6,173
Rialto Investments other income, net	—			—		1,327		—		1,327
Earnings (loss) before income taxes	(31,198		)	68,213		16,306		—		53,321
Benefit (provision) for income taxes	7,402			2,950		(6,715	)	—		3,637
Equity in earnings from subsidiaries	81,288			10,125		—		(91,413	)	—
Net earnings (including net loss attributable to     noncontrolling interests)	57,492			81,288		9,591		(91,413	)	56,958
Less: Net loss attributable to noncontrolling interests	—			—		(534	)	—		(534	)
Net earnings attributable to Lennar	$	57,492		81,288		10,125		(91,413	)	57,492

Condensed Consolidating Statement of Operations

Three Months Ended February 29, 2012

(In thousands)	Lennar Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Total
Revenues:
Lennar Homebuilding	$	—		624,028		405		—		624,433
Lennar Financial Services	—			34,550		37,982		(4,317	)	68,215
Rialto Investments	—			—		32,208		—		32,208
Total revenues	—			658,578		70,595		(4,317	)	724,856
Cost and expenses:
Lennar Homebuilding	—			580,510		4,375		(140	)	584,745
Lennar Financial Services	—			34,966		28,918		(3,919	)	59,965
Rialto Investments	—			78		33,370		(78	)	33,370
Corporate general and administrative	25,499			—		—		1,343		26,842
Total costs and expenses	25,499			615,554		66,663		(2,794	)	704,922
Lennar Homebuilding equity in earnings (loss) from     unconsolidated entities	—			1,141		(58	)	—		1,083
Lennar Homebuilding other income (expense), net	(77		)	4,058		—		86		4,067
Other interest expense	(1,437		)	(24,849	)	—		1,437		(24,849	)
Rialto Investments equity in earnings from     unconsolidated entities	—			—		18,458		—		18,458
Rialto Investments other expense, net	—			—		(12,240	)	—		(12,240	)
Earnings (loss) before income taxes	(27,013		)	23,374		10,092		—		6,453
Benefit (provision) for income taxes	12,609			(6,034	)	(5,051	)	—		1,524
Equity in earnings from subsidiaries	29,372			12,032		—		(41,404	)	—
Net earnings (including net loss attributable to     noncontrolling interests)	14,968			29,372		5,041		(41,404	)	7,977
Less: Net loss attributable to noncontrolling interests	—			—		(6,991	)	—		(6,991	)
Net earnings attributable to Lennar	$	14,968		29,372		12,032		(41,404	)	14,968

Consolidating Statement Of Cash Flows

Condensed Consolidating Statement of Cash Flows

Three Months EndedFebruary 28, 2013

(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)	$	57,492		81,288		9,591		(91,413	)	56,958
Adjustments to reconcile net earnings (including net      loss attributable to noncontrolling interests) to net      cash provided by (used in) operating activities	(30,899		)	(492,197	)	136,916		7,730		(378,450	)
Net cash provided by (used in) operating activities	26,593			(410,909	)	146,507		(83,683	)	(321,492	)
Cash flows from investing activities:
Investments in and contributions to Lennar      Homebuilding unconsolidated entities, net	—			2,940		(192	)	—		2,748
Investments in and contributions to Rialto Investments      consolidated and unconsolidated entities, net	—			—		7,680		—		7,680
Decrease in Rialto Investments defeasance cash to      retire notes payable	—			—		219,158		—		219,158
Receipts of principal payments on Rialto Investments      loans receivable	—			—		18,434		—		18,434
Proceeds from sales of Rialto Investments real      estate owned	—			—		34,451		—		34,451
Other	—			(15,924	)	(6,501	)	—		(22,425	)
Net cash provided by (used in) investing activities	—			(12,984	)	273,030		—		260,046
Cash flows from financing activities:
Net repayments under Lennar Financial Services debt	—			(20	)	(146,041	)	—		(146,061	)
Net proceeds from senior notes	445,270			—		—		—		445,270
Principal repayments on Rialto Investments      notes payable	—			—		(304,123	)	—		(304,123	)
Net borrowings (repayments) on other borrowings	—			(12,434	)	6,600		—		(5,834	)
Exercise of land option contracts from an      unconsolidated land investment venture	—			(1,270	)	—		—		(1,270	)
Net payments related to noncontrolling interests	—			—		(12,151	)	—		(12,151	)
Excess tax benefits from share-based awards	3,013			—		—		—		3,013
Common stock:
Issuances	21,668			—		—		—		21,668
Dividends	(7,693		)	—		—		—		(7,693	)
Intercompany	(523,037		)	433,966		5,388		83,683		—
Net cash provided by (used in) financing activities	(60,779		)	420,242		(450,327	)	83,683		(7,181	)
Net decrease in cash and cash equivalents	(34,186		)	(3,651	)	(30,790	)	—		(68,627	)
Cash and cash equivalents at beginning of period	953,478			192,373		164,892		—		1,310,743
Cash and cash equivalents at end of period	$	919,292		188,722		134,102		—		1,242,116

Condensed Consolidating Statement of Cash Flows

Three Months EndedFebruary 29, 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)	$	14,968		29,372		5,041		(41,404	)	7,977
Adjustments to reconcile net earnings (including net      loss attributable to noncontrolling interests) to      net cash provided by (used in) operating activities	(46,874		)	(229,062	)	94,111		41,404		(140,421	)
Net cash provided by (used in) operating activities	(31,906		)	(199,690	)	99,152		—		(132,444	)
Cash flows from investing activities:
Investments in and contributions to Lennar      Homebuilding unconsolidated entities, net	—			(16,465	)	(448	)	—		(16,913	)
Investments in and contributions to Rialto Investments      consolidated and unconsolidated entities, net	—			—		(7,213	)	—		(7,213	)
Decrease in Rialto Investments defeasance cash to      retire notes payable	—			—		108,163		—		108,163
Receipts of principal payments on Rialto Investments      loans receivable	—			—		33,549		—		33,549
Proceeds from sales of Rialto Investments real       estate owned	—			—		37,868		—		37,868
Other	—			5,147		(3,895	)	—		1,252
Net cash provided by (used) in investing activities	—			(11,318	)	168,024		—		156,706
Cash flows from financing activities:
Net repayments under Lennar Financial Services debt	—			(55	)	(150,629	)	—		(150,684	)
Net proceeds from convertible senior notes	48,965			—		—		—		48,965
Principal repayments on Rialto Investments notes payable	—			—		(170,026	)	—		(170,026	)
Net borrowings (repayments) on other borrowings	—			12,296		(4,473	)	—		7,823
Exercise of land option contracts from an      unconsolidated land investment venture	—			(4,628	)	—		—		(4,628	)
Net receipts related to noncontrolling interests	—			—		391		—		391
Common stock:
Issuances	10,761			—		—		—		10,761
Dividends	(7,562		)	—		—		—		(7,562	)
Intercompany	(212,652		)	165,478		47,174		—		—
Net cash provided by (used in) financing activities	(160,488		)	173,091		(277,563	)	—		(264,960	)
Net decrease in cash and cash equivalents	(192,394		)	(37,917	)	(10,387	)	—		(240,698	)
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	$	671,843		134,101		116,962		—		922,906

XML

Lennar Homebuilding Senior Notes And Other Debts Payable (Schedule Of Senior Notes And Other Debts Payable) (Details) (USD $) In Thousands, unless otherwise specified																																		3 Months Ended		3 Months Ended		3 Months Ended		3 Months Ended		3 Months Ended		3 Months Ended		3 Months Ended		3 Months Ended		3 Months Ended		3 Months Ended
	Feb. 28, 2013	Nov. 30, 2012	Feb. 28, 2013 5.95% Senior Notes Due 2013 [Member]	Nov. 30, 2012 5.95% Senior Notes Due 2013 [Member]	Feb. 28, 2013 5.50% Senior Notes Due 2014 [Member]	Nov. 30, 2012 5.50% Senior Notes Due 2014 [Member]	Feb. 28, 2013 5.60% Senior Notes Due 2015 [Member]	Nov. 30, 2012 5.60% Senior Notes Due 2015 [Member]	Feb. 28, 2013 6.50% Senior Notes Due 2016 [Member]	Nov. 30, 2012 6.50% Senior Notes Due 2016 [Member]	Feb. 28, 2013 4.75% Senior Notes Due 2017 [Member]	Nov. 30, 2012 4.75% Senior Notes Due 2017 [Member]	Feb. 28, 2013 12.25% Senior Notes Due 2017 [Member]	Nov. 30, 2012 12.25% Senior Notes Due 2017 [Member]	Feb. 28, 2013 4.125% Senior Notes Due 2018 [Member]	Nov. 30, 2012 4.125% Senior Notes Due 2018 [Member]	Feb. 28, 2013 6.95% Senior Notes Due 2018 [Member]	Nov. 30, 2012 6.95% Senior Notes Due 2018 [Member]	Feb. 28, 2013 2.00% Convertible Senior Notes Due 2020 [Member]	Nov. 30, 2012 2.00% Convertible Senior Notes Due 2020 [Member]	May 31, 2010 2.00% Convertible Senior Notes Due 2020 [Member]	Feb. 28, 2013 2.75% Convertible Senior Notes Due 2020 [Member]	Nov. 30, 2012 2.75% Convertible Senior Notes Due 2020 [Member]	Nov. 30, 2010 2.75% Convertible Senior Notes Due 2020 [Member]	Feb. 28, 2013 3.25% Convertible Senior Notes Due 2021 [Member]	Nov. 30, 2012 3.25% Convertible Senior Notes Due 2021 [Member]	Nov. 30, 2011 3.25% Convertible Senior Notes Due 2021 [Member]	Feb. 28, 2013 4.750% Senior Notes Due 2022 [Member]	Nov. 30, 2012 4.750% Senior Notes Due 2022 [Member]	Feb. 28, 2013 Lennar Homebuilding [Member]		Nov. 30, 2012 Lennar Homebuilding [Member]		Feb. 28, 2013 Lennar Homebuilding [Member] 5.95% Senior Notes Due 2013 [Member]	Nov. 30, 2012 Lennar Homebuilding [Member] 5.95% Senior Notes Due 2013 [Member]	Feb. 28, 2013 Lennar Homebuilding [Member] 5.50% Senior Notes Due 2014 [Member]	Nov. 30, 2012 Lennar Homebuilding [Member] 5.50% Senior Notes Due 2014 [Member]	Feb. 28, 2013 Lennar Homebuilding [Member] 5.60% Senior Notes Due 2015 [Member]	Nov. 30, 2012 Lennar Homebuilding [Member] 5.60% Senior Notes Due 2015 [Member]	Feb. 28, 2013 Lennar Homebuilding [Member] 6.50% Senior Notes Due 2016 [Member]	Nov. 30, 2012 Lennar Homebuilding [Member] 6.50% Senior Notes Due 2016 [Member]	Feb. 28, 2013 Lennar Homebuilding [Member] 4.75% Senior Notes Due 2017 [Member]	Nov. 30, 2012 Lennar Homebuilding [Member] 4.75% Senior Notes Due 2017 [Member]	Feb. 28, 2013 Lennar Homebuilding [Member] 12.25% Senior Notes Due 2017 [Member]	Nov. 30, 2012 Lennar Homebuilding [Member] 12.25% Senior Notes Due 2017 [Member]	Feb. 28, 2013 Lennar Homebuilding [Member] 6.95% Senior Notes Due 2018 [Member]	Nov. 30, 2012 Lennar Homebuilding [Member] 6.95% Senior Notes Due 2018 [Member]	Feb. 28, 2013 Lennar Homebuilding [Member] 2.00% Convertible Senior Notes Due 2020 [Member]	Nov. 30, 2012 Lennar Homebuilding [Member] 2.00% Convertible Senior Notes Due 2020 [Member]	Feb. 28, 2013 Lennar Homebuilding [Member] 2.75% Convertible Senior Notes Due 2020 [Member]	Nov. 30, 2012 Lennar Homebuilding [Member] 2.75% Convertible Senior Notes Due 2020 [Member]	Feb. 28, 2013 Lennar Homebuilding [Member] 3.25% Convertible Senior Notes Due 2021 [Member]	Nov. 30, 2012 Lennar Homebuilding [Member] 3.25% Convertible Senior Notes Due 2021 [Member]
Debt Instrument [Line Items]
Mortgage notes on land and other debt	$ 521,575	$ 471,588
Notes payable	4,505,662	4,005,051																												4,505,662	[1]	4,005,051	[1]
Interest rate			5.95%		5.50%		5.60%		6.50%		4.75%		12.25%		4.125%		6.95%		2.00%		2.00%	2.75%		2.75%	3.25%		3.25%		4.75%					5.95%	5.95%	5.50%	5.50%	5.60%	5.60%	6.50%	6.50%	4.75%	4.75%	12.25%	12.25%	6.95%	6.95%	2.00%	2.00%	2.75%	2.75%	3.25%	3.25%
Senior Notes			$ 62,932	$ 62,932	$ 249,294	$ 249,294	$ 500,651	$ 500,769	$ 249,868	$ 249,851	$ 400,000	$ 400,000	$ 394,871	$ 394,457	$ 274,995	$ 0	$ 248,017	$ 247,873	$ 276,500	$ 276,500		$ 405,331	$ 401,787		$ 400,000	$ 400,000		$ 521,628	$ 350,000
Debt instrument maturity year																																		2013		2014		2015		2016		2017		2017		2018		2020		2020		2021

[1] As of February 28, 2013, total liabilities include $435.3 million related to consolidated VIEs as to which there was no recourse against the Company, of which $10.1 million is included in Lennar Homebuilding accounts payable, $35.8 million in Lennar Homebuilding liabilities related to consolidated inventory not owned, $186.7 million in Lennar Homebuilding senior notes and other debts payable, $14.5 million in Lennar Homebuilding other liabilities and $188.2 million in Rialto Investments notes payable and other liabilities.As of November 30, 2012, total liabilities include $737.2 million related to consolidated VIEs as to which there was no recourse against the Company, of which $10.6 million is included in Lennar Homebuilding accounts payable, $35.9 million in Lennar Homebuilding liabilities related to consolidated inventory not owned, $181.6 million in Lennar Homebuilding senior notes and other debts payable, $15.7 million in Lennar Homebuilding other liabilities and $493.4 million in Rialto Investments notes payable and other liabilities.

XML

Supplemental Financial Information

3 Months Ended

Feb. 28, 2013

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, 4.125% senior notes due 2018, 6.95% senior notes due 2018, 2.00% convertible senior notes due 2020, 2.75% convertible senior notes due 2020, 3.25% convertible senior notes due 2021 and 4.750% senior notes due 2022 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 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 February 28, 2013. The guarantees are full, unconditional and joint and several and the guarantor subsidiaries are 100% directly or indirectly owned by Lennar Corporation. 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, 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 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. Supplemental information for the subsidiaries that were guarantor subsidiaries at February 28, 2013 was as follows:

Condensed Consolidating Balance Sheet

February 28, 2013

(In thousands)	Lennar Corporation		Guarantor Subsidiaries	Non-Guarantor Subsidiaries	Eliminations		Total
ASSETS
Lennar Homebuilding:
Cash and cash equivalents, restricted cash and      receivables, net	$	934,338	222,307	22,343	—		1,178,988
Inventories	—		5,061,731	550,245	—		5,611,976
Investments in unconsolidated entities	—		532,882	44,460	—		577,342
Other assets	51,269		721,073	222,816	(21,593	)	973,565
Investments in subsidiaries	3,508,365		796,925	—	(4,305,290	)	—
Intercompany	3,236,190		—	—	(3,236,190	)	—
	7,730,162		7,334,918	839,864	(7,563,073	)	8,341,871
Rialto Investments	—		—	1,342,233	—		1,342,233
Lennar Financial Services	—		73,130	675,035	—		748,165
Total assets	$	7,730,162	7,408,048	2,857,132	(7,563,073	)	10,432,269
LIABILITIES AND EQUITY
Lennar Homebuilding:
Accounts payable and other liabilities	$	250,194	566,996	34,852	(21,593	)	830,449
Liabilities related to consolidated inventory not owned	—		266,803	—	—		266,803
Senior notes and other debts payable	3,984,087		286,081	235,494	—		4,505,662
Intercompany	—		2,751,152	485,038	(3,236,190	)	—
	4,234,281		3,871,032	755,384	(3,257,783	)	5,602,914
Rialto Investments	—		—	285,166	—		285,166
Lennar Financial Services	—		28,651	445,898	—		474,549
Total liabilities	4,234,281		3,899,683	1,486,448	(3,257,783	)	6,362,629
Stockholders’ equity	3,495,881		3,508,365	796,925	(4,305,290	)	3,495,881
Noncontrolling interests	—		—	573,759	—		573,759
Total equity	3,495,881		3,508,365	1,370,684	(4,305,290	)	4,069,640
Total liabilities and equity	$	7,730,162	7,408,048	2,857,132	(7,563,073	)	10,432,269

Condensed Consolidating Balance Sheet

November 30, 2012

(In thousands)	Lennar Corporation			Guarantor Subsidiaries	Non-Guarantor Subsidiaries	Eliminations		Total
ASSETS
Lennar Homebuilding:
Cash and cash equivalents, restricted cash and      receivables, net	$	962,116		226,047	20,545	—		1,208,708
Inventories	—			4,532,755	538,958	—		5,071,713
Investments in unconsolidated entities	—			521,662	43,698	—		565,360
Other assets	55,625			677,692	222,753	—		956,070
Investments in subsidiaries	3,488,054			770,119	—	(4,258,173	)	—
	4,505,795			6,728,275	825,954	(4,258,173	)	7,801,851
Rialto Investments	—			—	1,647,360	—		1,647,360
Lennar Financial Services	—			77,637	835,358	—		912,995
Total assets	$	4,505,795		6,805,912	3,308,672	(4,258,173	)	10,362,206
LIABILITIES AND EQUITY
Lennar Homebuilding:
Accounts payable and other liabilities	$	279,926		533,882	42,406	—		856,214
Liabilities related to consolidated inventory not owned	—			268,159	—	—		268,159
Senior notes and other debts payable	3,533,463			245,665	225,923	—		4,005,051
Intercompany	(2,722,358		)	2,239,096	483,262	—		—
	1,091,031			3,286,802	751,591	—		5,129,424
Rialto Investments	—			—	600,602	—		600,602
Lennar Financial Services	—			31,056	599,916	—		630,972
Total liabilities	1,091,031			3,317,858	1,952,109	—		6,360,998
Stockholders’ equity	3,414,764			3,488,054	770,119	(4,258,173	)	3,414,764
Noncontrolling interests	—			—	586,444	—		586,444
Total equity	3,414,764			3,488,054	1,356,563	(4,258,173	)	4,001,208
Total liabilities and equity	$	4,505,795		6,805,912	3,308,672	(4,258,173	)	10,362,206

Condensed Consolidating Statement of Operations

Three Months EndedFebruary 28, 2013

(In thousands)	Lennar Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Total
Revenues:
Lennar Homebuilding	$	—		868,444		—		—		868,444
Lennar Financial Services	—			36,076		65,010		(5,206	)	95,880
Rialto Investments	—			—		25,622		—		25,622
Total revenues	—			904,520		90,632		(5,206	)	989,946
Cost and expenses:
Lennar Homebuilding	—			776,024		3,022		(372	)	778,674
Lennar Financial Services	—			37,018		47,656		(4,896	)	79,778
Rialto Investments	—			—		31,771		—		31,771
Corporate general and administrative	30,005			—		—		1,265		31,270
Total costs and expenses	30,005			813,042		82,449		(4,003	)	921,493
Lennar Homebuilding equity in earnings (loss) from     unconsolidated entities	—			(1,490	)	623		—		(867	)
Lennar Homebuilding other income, net	228			4,256		—		(218	)	4,266
Other interest expense	(1,421		)	(26,031	)	—		1,421		(26,031	)
Rialto Investments equity in earnings from     unconsolidated entities	—			—		6,173		—		6,173
Rialto Investments other income, net	—			—		1,327		—		1,327
Earnings (loss) before income taxes	(31,198		)	68,213		16,306		—		53,321
Benefit (provision) for income taxes	7,402			2,950		(6,715	)	—		3,637
Equity in earnings from subsidiaries	81,288			10,125		—		(91,413	)	—
Net earnings (including net loss attributable to     noncontrolling interests)	57,492			81,288		9,591		(91,413	)	56,958
Less: Net loss attributable to noncontrolling interests	—			—		(534	)	—		(534	)
Net earnings attributable to Lennar	$	57,492		81,288		10,125		(91,413	)	57,492

Condensed Consolidating Statement of Operations

Three Months Ended February 29, 2012

(In thousands)	Lennar Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Total
Revenues:
Lennar Homebuilding	$	—		624,028		405		—		624,433
Lennar Financial Services	—			34,550		37,982		(4,317	)	68,215
Rialto Investments	—			—		32,208		—		32,208
Total revenues	—			658,578		70,595		(4,317	)	724,856
Cost and expenses:
Lennar Homebuilding	—			580,510		4,375		(140	)	584,745
Lennar Financial Services	—			34,966		28,918		(3,919	)	59,965
Rialto Investments	—			78		33,370		(78	)	33,370
Corporate general and administrative	25,499			—		—		1,343		26,842
Total costs and expenses	25,499			615,554		66,663		(2,794	)	704,922
Lennar Homebuilding equity in earnings (loss) from     unconsolidated entities	—			1,141		(58	)	—		1,083
Lennar Homebuilding other income (expense), net	(77		)	4,058		—		86		4,067
Other interest expense	(1,437		)	(24,849	)	—		1,437		(24,849	)
Rialto Investments equity in earnings from     unconsolidated entities	—			—		18,458		—		18,458
Rialto Investments other expense, net	—			—		(12,240	)	—		(12,240	)
Earnings (loss) before income taxes	(27,013		)	23,374		10,092		—		6,453
Benefit (provision) for income taxes	12,609			(6,034	)	(5,051	)	—		1,524
Equity in earnings from subsidiaries	29,372			12,032		—		(41,404	)	—
Net earnings (including net loss attributable to     noncontrolling interests)	14,968			29,372		5,041		(41,404	)	7,977
Less: Net loss attributable to noncontrolling interests	—			—		(6,991	)	—		(6,991	)
Net earnings attributable to Lennar	$	14,968		29,372		12,032		(41,404	)	14,968

Condensed Consolidating Statement of Cash Flows

Three Months EndedFebruary 28, 2013

(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)	$	57,492		81,288		9,591		(91,413	)	56,958
Adjustments to reconcile net earnings (including net      loss attributable to noncontrolling interests) to net      cash provided by (used in) operating activities	(30,899		)	(492,197	)	136,916		7,730		(378,450	)
Net cash provided by (used in) operating activities	26,593			(410,909	)	146,507		(83,683	)	(321,492	)
Cash flows from investing activities:
Investments in and contributions to Lennar      Homebuilding unconsolidated entities, net	—			2,940		(192	)	—		2,748
Investments in and contributions to Rialto Investments      consolidated and unconsolidated entities, net	—			—		7,680		—		7,680
Decrease in Rialto Investments defeasance cash to      retire notes payable	—			—		219,158		—		219,158
Receipts of principal payments on Rialto Investments      loans receivable	—			—		18,434		—		18,434
Proceeds from sales of Rialto Investments real      estate owned	—			—		34,451		—		34,451
Other	—			(15,924	)	(6,501	)	—		(22,425	)
Net cash provided by (used in) investing activities	—			(12,984	)	273,030		—		260,046
Cash flows from financing activities:
Net repayments under Lennar Financial Services debt	—			(20	)	(146,041	)	—		(146,061	)
Net proceeds from senior notes	445,270			—		—		—		445,270
Principal repayments on Rialto Investments      notes payable	—			—		(304,123	)	—		(304,123	)
Net borrowings (repayments) on other borrowings	—			(12,434	)	6,600		—		(5,834	)
Exercise of land option contracts from an      unconsolidated land investment venture	—			(1,270	)	—		—		(1,270	)
Net payments related to noncontrolling interests	—			—		(12,151	)	—		(12,151	)
Excess tax benefits from share-based awards	3,013			—		—		—		3,013
Common stock:
Issuances	21,668			—		—		—		21,668
Dividends	(7,693		)	—		—		—		(7,693	)
Intercompany	(523,037		)	433,966		5,388		83,683		—
Net cash provided by (used in) financing activities	(60,779		)	420,242		(450,327	)	83,683		(7,181	)
Net decrease in cash and cash equivalents	(34,186		)	(3,651	)	(30,790	)	—		(68,627	)
Cash and cash equivalents at beginning of period	953,478			192,373		164,892		—		1,310,743
Cash and cash equivalents at end of period	$	919,292		188,722		134,102		—		1,242,116

Condensed Consolidating Statement of Cash Flows

Three Months EndedFebruary 29, 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)	$	14,968		29,372		5,041		(41,404	)	7,977
Adjustments to reconcile net earnings (including net      loss attributable to noncontrolling interests) to      net cash provided by (used in) operating activities	(46,874		)	(229,062	)	94,111		41,404		(140,421	)
Net cash provided by (used in) operating activities	(31,906		)	(199,690	)	99,152		—		(132,444	)
Cash flows from investing activities:
Investments in and contributions to Lennar      Homebuilding unconsolidated entities, net	—			(16,465	)	(448	)	—		(16,913	)
Investments in and contributions to Rialto Investments      consolidated and unconsolidated entities, net	—			—		(7,213	)	—		(7,213	)
Decrease in Rialto Investments defeasance cash to      retire notes payable	—			—		108,163		—		108,163
Receipts of principal payments on Rialto Investments      loans receivable	—			—		33,549		—		33,549
Proceeds from sales of Rialto Investments real       estate owned	—			—		37,868		—		37,868
Other	—			5,147		(3,895	)	—		1,252
Net cash provided by (used) in investing activities	—			(11,318	)	168,024		—		156,706
Cash flows from financing activities:
Net repayments under Lennar Financial Services debt	—			(55	)	(150,629	)	—		(150,684	)
Net proceeds from convertible senior notes	48,965			—		—		—		48,965
Principal repayments on Rialto Investments notes payable	—			—		(170,026	)	—		(170,026	)
Net borrowings (repayments) on other borrowings	—			12,296		(4,473	)	—		7,823
Exercise of land option contracts from an      unconsolidated land investment venture	—			(4,628	)	—		—		(4,628	)
Net receipts related to noncontrolling interests	—			—		391		—		391
Common stock:
Issuances	10,761			—		—		—		10,761
Dividends	(7,562		)	—		—		—		(7,562	)
Intercompany	(212,652		)	165,478		47,174		—		—
Net cash provided by (used in) financing activities	(160,488		)	173,091		(277,563	)	—		(264,960	)
Net decrease in cash and cash equivalents	(192,394		)	(37,917	)	(10,387	)	—		(240,698	)
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	$	671,843		134,101		116,962		—		922,906

XML

Operating And Reporting Segments Operating And Reporting Segments (Disclosure Of Financial Information Relating To Company's Operations, Assets) (Details) (USD $) In Thousands, unless otherwise specified	Feb. 28, 2013		Nov. 30, 2012
Segment Reporting Information [Line Items]
Assets	$ 10,432,269	[1]	$ 10,362,206	[1]
Homebuilding East [Member]
Segment Reporting Information [Line Items]
Assets	1,640,261		1,565,439
Homebuilding Central [Member]
Segment Reporting Information [Line Items]
Assets	820,877		729,300
Homebuilding West [Member]
Segment Reporting Information [Line Items]
Assets	2,601,065		2,396,515
Homebuilding Southeast Florida [Member]
Segment Reporting Information [Line Items]
Assets	678,094		603,360
Homebuilding Houston [Member]
Segment Reporting Information [Line Items]
Assets	312,404		273,605
Homebuilding Other [Member]
Segment Reporting Information [Line Items]
Assets	805,786	[2]	724,461	[2]
Lennar Financial Services [Member]
Segment Reporting Information [Line Items]
Assets	748,165	[1]	912,995	[1]
Unallocated Amount to Segment [Member]
Segment Reporting Information [Line Items]
Assets	1,483,384		1,509,171
Multifamily Business [Member] | Homebuilding Other [Member]
Segment Reporting Information [Line Items]
Assets	$ 63,183	[2]	$ 29,122	[2]

[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 February 28, 2013, total assets include $1,837.4 million related to consolidated VIEs of which $15.9 million is included in Lennar Homebuilding cash and cash equivalents, $6.0 million in Lennar Homebuilding receivables, net, $65.6 million in Lennar Homebuilding finished homes and construction in progress, $485.6 million in Lennar Homebuilding land and land under development, $65.9 million in Lennar Homebuilding consolidated inventory not owned, $44.5 million in Lennar Homebuilding investments in unconsolidated entities, $223.2 million in Lennar Homebuilding other assets, $63.3 million in Rialto Investments cash and cash equivalents, $4.7 million in Rialto Investments defeasance cash to retire notes payable, $318.5 million in Rialto Investments loans receivable, net, $115.3 million in Rialto Investments real estate owned, held-for-sale, $422.8 million in Rialto Investments real estate owned, held-and-used, net $0.6 million in Rialto Investments in unconsolidated entities and $5.5 million in Rialto Investments other assets.As of November 30, 2012, total assets include $2,128.6 million related to consolidated VIEs of which $13.2 million is included in Lennar Homebuilding cash and cash equivalents, $6.0 million in Lennar Homebuilding receivables, net, $57.4 million in Lennar Homebuilding finished homes and construction in progress, $482.6 million in Lennar Homebuilding land and land under development, $65.2 million in Lennar Homebuilding consolidated inventory not owned, $43.7 million in Lennar Homebuilding investments in unconsolidated entities, $224.1 million in Lennar Homebuilding other assets, $104.8 million in Rialto Investments cash and cash equivalents, $223.8 million in Rialto Investments defeasance cash to retire notes payable, $350.2 million in Rialto Investments loans receivable, net, $94.2 million in Rialto Investments real estate owned, held-for-sale, $454.9 million in Rialto Investments real estate owned, held-and-used, net, $0.7 million in Rialto Investments in unconsolidated entities and $7.8 million in Rialto Investments other assets.

[2] Includes assets related to the Company's multifamily business of $63.2 million and $29.1 million, respectively, as of February 28, 2013 and November 30, 2012.

XML

Operating And Reporting Segments (Tables)

3 Months Ended

Feb. 28, 2013

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)	February 28, 2013		November 30, 2012
Assets:
Homebuilding East	$	1,640,261	1,565,439
Homebuilding Central	820,877		729,300
Homebuilding West	2,601,065		2,396,515
Homebuilding Southeast Florida	678,094		603,360
Homebuilding Houston	312,404		273,605
Homebuilding Other (1)	805,786		724,461
Rialto Investments (2)	1,342,233		1,647,360
Lennar Financial Services	748,165		912,995
Corporate and unallocated	1,483,384		1,509,171
Total assets	$	10,432,269	10,362,206

(1) Includes assets related to the Company's multifamily business of $63.2 million and $29.1 million, respectively, as of February 28, 2013 and November 30, 2012.

(2) Consists primarily of assets of consolidated VIEs (see Note 8).

	Three Months Ended
	February 28,			February 29,
(In thousands)	2013			2012
Revenues:
Homebuilding East	$	288,892		244,833
Homebuilding Central	149,032			85,713
Homebuilding West	174,075			123,085
Homebuilding Southeast Florida	71,851			49,789
Homebuilding Houston	108,518			84,834
Homebuilding Other	76,076			36,179
Lennar Financial Services	95,880			68,215
Rialto Investments	25,622			32,208
Total revenues (1)	$	989,946		724,856
Operating earnings (loss):
Homebuilding East	$	22,875		13,947
Homebuilding Central	13,957			1,064
Homebuilding West	12,603			(7,573	)
Homebuilding Southeast Florida	9,408			6,634
Homebuilding Houston	9,506			4,516
Homebuilding Other	(1,211		)	1,401
Lennar Financial Services	16,102			8,250
Rialto Investments	1,351			5,056
Total operating earnings	84,591			33,295
Corporate general and administrative expenses	31,270			26,842
Earnings before income taxes	$	53,321		6,453

(1) Total revenues are net of sales incentives of $74.0 million ($23,300 per home delivered) for the three months ended February 28, 2013, compared to $84.5 million ($34,200 per home delivered) for the three months ended February 29, 2012.

Disclosure Of Valuation Adjustments And Write-Offs Relating To Company's Homebuilding Operations

Valuation adjustments and write-offs relating to the Company’s homebuilding operations were as follows:

	Three Months Ended
	February 28,		February 29,
(In thousands)	2013		2012
Valuation adjustments to finished homes, CIP and land on which the Company intends to build homes:
East	$	49	217
Central	37		153
West	98		530
Southeast Florida	1,050		328
Houston	—		61
Other	21		736
Total	1,255		2,025
Valuation adjustments to land the Company intends to sell or has sold to third parties:
East	83		—
Central	2		—
West	158		—
Total	243		—
Write-offs of option deposits and pre-acquisition costs:
East	171		7
Central	26		49
West	18		232
Other	—		2
Total	215		290
Valuation adjustments to investments of unconsolidated entities:
East	—		11
Total	—		11
Total valuation adjustments and write-offs of option deposits and pre-acquisition costs	$	1,713	2,326

XML

Share-Based Payment (Compensation Expense, Share-Based Payment Awards) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Feb. 28, 2013	Feb. 29, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock options	$ 0	$ 885
Nonvested shares	6,486	7,276
Total compensation expense for share-based awards	$ 6,486	$ 8,161

XML

Operating And Reporting Segments

3 Months Ended

Feb. 28, 2013

Segment Reporting [Abstract]

Operating And Reporting Segments

Operating and Reporting Segments

The Company’s operating segments are aggregated into reportable segments, based primarily upon similar economic characteristics, geography and product type. The Company’s reportable segments consist of:

(1) Homebuilding East

(2) Homebuilding Central

(3) Homebuilding West

(4) Homebuilding Southeast Florida

(5) Homebuilding Houston

(6) Lennar Financial Services

(7) Rialto Investments

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, equity in earnings (loss) from unconsolidated entities and other income (expense), net, less the cost of homes sold and land sold, selling, general and administrative expenses and other interest expense of the segment.

The Company’s reportable homebuilding segments and all other homebuilding operations not required to be reported separately have operations located in:

East: Florida⁽¹⁾, Georgia, Maryland, New Jersey, North Carolina, South Carolina and Virginia

Central: Arizona, Colorado and Texas⁽²⁾ 

West: California and Nevada

Southeast Florida: Southeast Florida

Houston: Houston, Texas

Other: Illinois, Minnesota, Oregon and Washington

(1)Florida in the East reportable segment excludes Southeast Florida, which is its own reportable segment.

(2)Texas in the Central reportable segment excludes Houston, Texas, which is its own reportable segment.

Operations of the Lennar Financial Services segment include mortgage financing, title insurance and closing services for both buyers of the Company’s homes and others. Substantially all of the loans the Lennar 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. Lennar Financial Services’ operating earnings consist of revenues generated primarily from mortgage financing, title insurance and closing services, less the cost of such services and certain selling, general and administrative expenses incurred by the segment. The Lennar Financial Services segment operates generally in the same states as the Company’s homebuilding operations, as well as in other states.

Operations of the Rialto Investments (“Rialto”) segment include sourcing, underwriting, pricing, managing and ultimately monetizing real estate and real estate related assets, as well as providing similar services to others in markets across the country. Rialto’s operating earnings consists of revenues generated primarily from accretable interest income associated with portfolios of real estate loans acquired in partnership with the FDIC and other portfolios of real estate loans and assets acquired, asset management, due diligence and underwriting fees derived from the segment's Real Estate Investment Fund, LP (the “Fund I”), fees for sub-advisory services, other income (expense), net, consisting primarily of net gains upon foreclosure of real estate owned (“REO”) and net gains on sale of REO, and equity in earnings (loss) from unconsolidated entities, less the costs incurred by the segment for managing portfolios, REO expenses and other general administrative expenses.

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 2012 Annual Report on Form 10-K. 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)	February 28, 2013		November 30, 2012
Assets:
Homebuilding East	$	1,640,261	1,565,439
Homebuilding Central	820,877		729,300
Homebuilding West	2,601,065		2,396,515
Homebuilding Southeast Florida	678,094		603,360
Homebuilding Houston	312,404		273,605
Homebuilding Other (1)	805,786		724,461
Rialto Investments (2)	1,342,233		1,647,360
Lennar Financial Services	748,165		912,995
Corporate and unallocated	1,483,384		1,509,171
Total assets	$	10,432,269	10,362,206

(1) Includes assets related to the Company's multifamily business of $63.2 million and $29.1 million, respectively, as of February 28, 2013 and November 30, 2012.

(2) Consists primarily of assets of consolidated VIEs (see Note 8).

	Three Months Ended
	February 28,			February 29,
(In thousands)	2013			2012
Revenues:
Homebuilding East	$	288,892		244,833
Homebuilding Central	149,032			85,713
Homebuilding West	174,075			123,085
Homebuilding Southeast Florida	71,851			49,789
Homebuilding Houston	108,518			84,834
Homebuilding Other	76,076			36,179
Lennar Financial Services	95,880			68,215
Rialto Investments	25,622			32,208
Total revenues (1)	$	989,946		724,856
Operating earnings (loss):
Homebuilding East	$	22,875		13,947
Homebuilding Central	13,957			1,064
Homebuilding West	12,603			(7,573	)
Homebuilding Southeast Florida	9,408			6,634
Homebuilding Houston	9,506			4,516
Homebuilding Other	(1,211		)	1,401
Lennar Financial Services	16,102			8,250
Rialto Investments	1,351			5,056
Total operating earnings	84,591			33,295
Corporate general and administrative expenses	31,270			26,842
Earnings before income taxes	$	53,321		6,453

(1) Total revenues are net of sales incentives of $74.0 million ($23,300 per home delivered) for the three months ended February 28, 2013, compared to $84.5 million ($34,200 per home delivered) for the three months ended February 29, 2012.

Valuation adjustments and write-offs relating to the Company’s homebuilding operations were as follows:

	Three Months Ended
	February 28,		February 29,
(In thousands)	2013		2012
Valuation adjustments to finished homes, CIP and land on which the Company intends to build homes:
East	$	49	217
Central	37		153
West	98		530
Southeast Florida	1,050		328
Houston	—		61
Other	21		736
Total	1,255		2,025
Valuation adjustments to land the Company intends to sell or has sold to third parties:
East	83		—
Central	2		—
West	158		—
Total	243		—
Write-offs of option deposits and pre-acquisition costs:
East	171		7
Central	26		49
West	18		232
Other	—		2
Total	215		290
Valuation adjustments to investments of unconsolidated entities:
East	—		11
Total	—		11
Total valuation adjustments and write-offs of option deposits and pre-acquisition costs	$	1,713	2,326

During the three months ended February 28, 2013, the Company recorded lower valuation adjustments than during the three months ended February 29, 2012. Changes in market conditions and other specific developments may cause the Company to re-evaluate its strategy regarding certain 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.

XML

Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Feb. 28, 2013	Nov. 30, 2012
Stockholders' Equity:
Total consolidated VIEs assets	$ 1,837,400	$ 2,128,600
Total consolidated VIEs liabilities	435,300	737,200
Class A Common Stock [Member]
Stockholders' Equity:
Common Stock, par value	$ 0.10	$ 0.10
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	172,726,088	172,397,149
Treasury stock, shares	11,702,017	12,152,816
Class B Common Stock [Member]
Stockholders' Equity:
Common Stock, par value	$ 0.10	$ 0.10
Common stock, shares authorized	90,000,000	90,000,000
Common stock, shares issued	32,982,815	32,982,815
Treasury stock, shares	1,679,620	1,679,620
Lennar Homebuilding Consolidated VIEs [Member]
Stockholders' Equity:
Cash and cash equivalents	15,900	13,200
Receivables, net	6,000	6,000
Finished homes and construction in progress	65,600	57,400
Land and land under development	485,600	482,600
Consolidated inventory not owned	65,900	65,200
Investments in unconsolidated entities	44,500	43,700
Other assets	223,200	224,100
Accounts payable	10,100	10,600
Liabilities related to consolidated inventory not owned	35,800	35,900
Senior notes and other debts payable	186,700	181,600
Other liabilities	14,500	15,700
Rialto Investments Consolidated VIEs [Member]
Stockholders' Equity:
Cash and cash equivalents	63,300	104,800
Investments in unconsolidated entities	600	700
Other assets	5,500	7,800
Defeasance cash to retire notes payable	4,700	223,800
Loans receivable	318,500	350,200
Real estate owned, held for sale	115,300	94,200
Real estate owned held-and-used, net	422,800	454,900
Consolidated VIEs Notes Payable And Other Liabilities	$ 188,200	$ 493,400

XML

Product Warranty

3 Months Ended

Feb. 28, 2013

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 other liabilities in the accompanying condensed consolidated balance sheets. The activity in the Company’s warranty reserve was as follows:

	Three Months Ended
	February 28,			February 29,
(In thousands)	2013			2012
Warranty reserve, beginning of period	$	84,188		88,120
Warranties issued during the period	8,759			6,855
Adjustments to pre-existing warranties from changes in estimates	2,949			1,367
Payments	(10,688		)	(10,625	)
Warranty reserve, end of period	$	85,208		85,717

As of February 28, 2013, the Company has identified approximately 1,010 homes delivered in Florida primarily during its 2006 and 2007 fiscal years that are confirmed to have had defective Chinese drywall and resulting damage. This represents a small percentage of homes the Company delivered nationally (1.2%) during those fiscal years. Defective Chinese drywall is an industry-wide issue as other homebuilders have publicly disclosed that they have experienced similar issues with defective Chinese drywall. Based on its efforts to date, the Company has not identified defective Chinese drywall in homes delivered by the Company outside of Florida. The Company has offered to replace defective Chinese drywall when it has been found in homes the Company has built, and has done so in substantially all affected homes. Drywall claims for approximately 40 of the 1,010 homes will be resolved through settlement of the drywall multi-district class action litigation in the United States District Court for the Eastern District of Louisiana.

Through February 28, 2013, the Company has accrued $82.2 million of warranty reserves related to defective Chinese drywall. There were no additional amounts accrued during the three months ended February 28, 2013. As of February 28, 2013 and November 30, 2012, the warranty reserve related to Chinese drywall, net of payments, was $2.5 million and $2.9 million, respectively. The Company has received, and continues to seek, reimbursement from its subcontractors, insurers and others for costs the Company has incurred or expects to incur to investigate and repair defective Chinese drywall and resulting damage.

XML

Document And Entity Information	3 Months Ended
	Feb. 28, 2013	Mar. 31, 2013 Class A Common Stock [Member]	Mar. 31, 2013 Class B Common Stock [Member]
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	Feb. 28, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		161,082,667	31,303,195

XML

Share-Based Payment

3 Months Ended

Feb. 28, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Payment

Share-Based Payment

During the three months ended February 28, 2013, the Company did not grant any stock options or nonvested shares. During the three months ended February 29, 2012, the Company did not grant any stock options and granted an immaterial number of nonvested shares. Compensation expense related to the Company’s share-based payment awards was as follows:

	Three Months Ended
	February 28,		February 29,
(In thousands)	2013		2012
Stock options	$	—	885
Nonvested shares	6,486		7,276
Total compensation expense for share-based awards	$	6,486	8,161

XML

Supplemental Financial Information (Condensed Consolidating Statement Of Cash Flows) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Feb. 28, 2013		Feb. 29, 2012
Condensed Financial Statements, Captions [Line Items]
Net earnings (including net earnings (loss) attributable to noncontrolling interests)	$ 56,958		$ 7,977
Adjustments to reconcile net earnings (including net earnings attributable to noncontrolling interests) to net cash provided by (used in) operating activities	(378,450)		(140,421)
Net cash provided by (used in) operating activities	(321,492)		(132,444)
Other	(22,425)		1,252
Net cash provided by (used in) investing activities	260,046		156,706
Net Proceeds From Convertible Senior Notes			48,965
Net proceeds from senior notes	445,270
Principal repayments on Rialto Investments notes payable	(304,123)		(170,026)
Proceeds from (Repayments of) Other Debt	(5,834)		7,823
Exercise of land option contracts from an unconsolidated land investment venture	(1,270)		(4,628)
Net payments related to noncontrolling interests	(12,151)		391
Excess tax benefits from share-based awards	3,013		0
Issuances	21,668		10,761
Dividends	(7,693)		(7,562)
Intercompany
Net cash used in financing activities	(7,181)		(264,960)
Net decrease in cash and cash equivalents	(68,627)		(240,698)
Cash and cash equivalents at beginning of period	1,310,743		1,163,604
Cash and cash equivalents at end of period	1,242,116		922,906
Lennar Corporation [Member]
Condensed Financial Statements, Captions [Line Items]
Net earnings (including net earnings (loss) attributable to noncontrolling interests)	57,492		14,968
Adjustments to reconcile net earnings (including net earnings attributable to noncontrolling interests) to net cash provided by (used in) operating activities	(30,899)		(46,874)
Net cash provided by (used in) operating activities	26,593		(31,906)
Other
Net cash provided by (used in) investing activities
Net Proceeds From Convertible Senior Notes			48,965
Net proceeds from senior notes	445,270
Principal repayments on Rialto Investments notes payable
Proceeds from (Repayments of) Other Debt
Exercise of land option contracts from an unconsolidated land investment venture
Net payments related to noncontrolling interests
Excess tax benefits from share-based awards	3,013
Issuances	21,668		10,761
Dividends	(7,693)		(7,562)
Intercompany	(523,037)		(212,652)
Net cash used in financing activities	(60,779)		(160,488)
Net decrease in cash and cash equivalents	(34,186)		(192,394)
Cash and cash equivalents at beginning of period	953,478		864,237
Cash and cash equivalents at end of period	919,292		671,843
Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Net earnings (including net earnings (loss) attributable to noncontrolling interests)	81,288		29,372
Adjustments to reconcile net earnings (including net earnings attributable to noncontrolling interests) to net cash provided by (used in) operating activities	(492,197)		(229,062)
Net cash provided by (used in) operating activities	(410,909)		(199,690)
Other	(15,924)		5,147
Net cash provided by (used in) investing activities	(12,984)		(11,318)
Net Proceeds From Convertible Senior Notes			0
Net proceeds from senior notes
Principal repayments on Rialto Investments notes payable
Proceeds from (Repayments of) Other Debt	(12,434)		12,296
Exercise of land option contracts from an unconsolidated land investment venture	(1,270)		(4,628)
Net payments related to noncontrolling interests
Excess tax benefits from share-based awards	0
Issuances
Dividends
Intercompany	433,966		165,478
Net cash used in financing activities	420,242		173,091
Net decrease in cash and cash equivalents	(3,651)		(37,917)
Cash and cash equivalents at beginning of period	192,373		172,018
Cash and cash equivalents at end of period	188,722		134,101
Non-Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Net earnings (including net earnings (loss) attributable to noncontrolling interests)	9,591		5,041
Adjustments to reconcile net earnings (including net earnings attributable to noncontrolling interests) to net cash provided by (used in) operating activities	136,916		94,111
Net cash provided by (used in) operating activities	146,507		99,152
Other	(6,501)		(3,895)
Net cash provided by (used in) investing activities	273,030		168,024
Net Proceeds From Convertible Senior Notes			0
Net proceeds from senior notes
Principal repayments on Rialto Investments notes payable	(304,123)		(170,026)
Proceeds from (Repayments of) Other Debt	6,600		(4,473)
Exercise of land option contracts from an unconsolidated land investment venture
Net payments related to noncontrolling interests	(12,151)		391
Excess tax benefits from share-based awards	0
Issuances
Dividends
Intercompany	5,388		47,174
Net cash used in financing activities	(450,327)		(277,563)
Net decrease in cash and cash equivalents	(30,790)		(10,387)
Cash and cash equivalents at beginning of period	164,892		127,349
Cash and cash equivalents at end of period	134,102		116,962
Eliminations [Member]
Condensed Financial Statements, Captions [Line Items]
Net earnings (including net earnings (loss) attributable to noncontrolling interests)	(91,413)		(41,404)
Adjustments to reconcile net earnings (including net earnings attributable to noncontrolling interests) to net cash provided by (used in) operating activities	7,730		41,404
Net cash provided by (used in) operating activities	(83,683)		0
Other
Net cash provided by (used in) investing activities
Net Proceeds From Convertible Senior Notes			0
Net proceeds from senior notes
Principal repayments on Rialto Investments notes payable
Proceeds from (Repayments of) Other Debt
Exercise of land option contracts from an unconsolidated land investment venture
Net payments related to noncontrolling interests
Excess tax benefits from share-based awards	0
Issuances
Dividends
Intercompany	83,683		0
Net cash used in financing activities	83,683		0
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
Lennar Homebuilding [Member]
Condensed Financial Statements, Captions [Line Items]
Intercompany Assets
Investments in and contributions to unconsolidated entities, net	2,748		(16,913)
Cash and cash equivalents at beginning of period	1,146,867	[1]
Cash and cash equivalents at end of period	1,112,728	[1]	792,165
Lennar Homebuilding [Member] | Lennar Corporation [Member]
Condensed Financial Statements, Captions [Line Items]
Intercompany Assets	3,236,190
Investments in and contributions to unconsolidated entities, net
Lennar Homebuilding [Member] | Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Intercompany Assets
Investments in and contributions to unconsolidated entities, net	2,940		(16,465)
Lennar Homebuilding [Member] | Non-Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Intercompany Assets
Investments in and contributions to unconsolidated entities, net	(192)		(448)
Lennar Homebuilding [Member] | Eliminations [Member]
Condensed Financial Statements, Captions [Line Items]
Intercompany Assets	(3,236,190)
Investments in and contributions to unconsolidated entities, net
Rialto Investments [Member]
Condensed Financial Statements, Captions [Line Items]
Investments in and contributions to unconsolidated entities, net	7,680		(7,213)
Decrease (increase) in Rialto Investments defeasance cash to retire notes payable	219,158		108,163
Receipts of principal payments on Rialto Investments loans receivable	18,434		33,549
Proceeds from sales of Rialto Investments real estate owned	34,451		37,868
Principal repayments on Rialto Investments notes payable	(304,123)		(170,026)
Cash and cash equivalents at beginning of period	105,310	[1]
Cash and cash equivalents at end of period	64,188	[1]	74,186
Rialto Investments [Member] | Lennar Corporation [Member]
Condensed Financial Statements, Captions [Line Items]
Investments in and contributions to unconsolidated entities, net
Decrease (increase) in Rialto Investments defeasance cash to retire notes payable
Receipts of principal payments on Rialto Investments loans receivable
Proceeds from sales of Rialto Investments real estate owned
Rialto Investments [Member] | Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Investments in and contributions to unconsolidated entities, net
Decrease (increase) in Rialto Investments defeasance cash to retire notes payable
Receipts of principal payments on Rialto Investments loans receivable
Proceeds from sales of Rialto Investments real estate owned
Rialto Investments [Member] | Non-Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Investments in and contributions to unconsolidated entities, net	7,680		(7,213)
Decrease (increase) in Rialto Investments defeasance cash to retire notes payable	219,158		108,163
Receipts of principal payments on Rialto Investments loans receivable	18,434		33,549
Proceeds from sales of Rialto Investments real estate owned	34,451		37,868
Rialto Investments [Member] | Eliminations [Member]
Condensed Financial Statements, Captions [Line Items]
Investments in and contributions to unconsolidated entities, net
Decrease (increase) in Rialto Investments defeasance cash to retire notes payable
Receipts of principal payments on Rialto Investments loans receivable
Proceeds from sales of Rialto Investments real estate owned
Lennar Financial Services [Member]
Condensed Financial Statements, Captions [Line Items]
Net repayments under Lennar Financial Services debt	(146,061)		(150,684)
Cash and cash equivalents at beginning of period	58,566
Cash and cash equivalents at end of period	65,200		56,555
Lennar Financial Services [Member] | Lennar Corporation [Member]
Condensed Financial Statements, Captions [Line Items]
Net repayments under Lennar Financial Services debt
Lennar Financial Services [Member] | Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Net repayments under Lennar Financial Services debt	(20)		(55)
Lennar Financial Services [Member] | Non-Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Net repayments under Lennar Financial Services debt	(146,041)		(150,629)
Lennar Financial Services [Member] | Eliminations [Member]
Condensed Financial Statements, Captions [Line Items]
Net repayments under Lennar Financial Services debt

[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 February 28, 2013, total assets include $1,837.4 million related to consolidated VIEs of which $15.9 million is included in Lennar Homebuilding cash and cash equivalents, $6.0 million in Lennar Homebuilding receivables, net, $65.6 million in Lennar Homebuilding finished homes and construction in progress, $485.6 million in Lennar Homebuilding land and land under development, $65.9 million in Lennar Homebuilding consolidated inventory not owned, $44.5 million in Lennar Homebuilding investments in unconsolidated entities, $223.2 million in Lennar Homebuilding other assets, $63.3 million in Rialto Investments cash and cash equivalents, $4.7 million in Rialto Investments defeasance cash to retire notes payable, $318.5 million in Rialto Investments loans receivable, net, $115.3 million in Rialto Investments real estate owned, held-for-sale, $422.8 million in Rialto Investments real estate owned, held-and-used, net $0.6 million in Rialto Investments in unconsolidated entities and $5.5 million in Rialto Investments other assets.As of November 30, 2012, total assets include $2,128.6 million related to consolidated VIEs of which $13.2 million is included in Lennar Homebuilding cash and cash equivalents, $6.0 million in Lennar Homebuilding receivables, net, $57.4 million in Lennar Homebuilding finished homes and construction in progress, $482.6 million in Lennar Homebuilding land and land under development, $65.2 million in Lennar Homebuilding consolidated inventory not owned, $43.7 million in Lennar Homebuilding investments in unconsolidated entities, $224.1 million in Lennar Homebuilding other assets, $104.8 million in Rialto Investments cash and cash equivalents, $223.8 million in Rialto Investments defeasance cash to retire notes payable, $350.2 million in Rialto Investments loans receivable, net, $94.2 million in Rialto Investments real estate owned, held-for-sale, $454.9 million in Rialto Investments real estate owned, held-and-used, net, $0.7 million in Rialto Investments in unconsolidated entities and $7.8 million in Rialto Investments other assets.

XML

Condensed Consolidated Statements Of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Feb. 28, 2013		Feb. 29, 2012
Revenues:
Total revenues	$ 989,946	[1]	$ 724,856	[1]
Cost and expenses:
Corporate general and administrative	31,270		26,842
Total costs and expenses	921,493		704,922
Other interest expense	(26,031)		(24,849)
Earnings before income taxes	53,321		6,453
Benefit for income taxes	3,637		1,524
Net earnings (including net earnings (loss) attributable to noncontrolling interests)	56,958		7,977
Less: Net earnings (loss) attributable to noncontrolling interests	(534)	[2]	(6,991)	[2]
Net earnings attributable to Lennar	57,492		14,968
Basic earnings per share	$ 0.30		$ 0.08
Diluted earnings per share	$ 0.26		$ 0.08
Cash dividends per each Class A and Class B common share	$ 0.04		$ 0.04
Comprehensive Income (Loss), Net of Tax, Attributable to Lennar	57,492		14,968
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interests	(534)		(6,991)
Lennar Homebuilding [Member]
Revenues:
Lennar Homebuilding	868,444		624,433
Cost and expenses:
Lennar Homebuilding	778,674		584,745
Equity in earnings (loss) from unconsolidated entities	(867)		1,083
Other income (expense), net	4,266		4,067
Lennar Financial Services [Member]
Revenues:
Lennar Financial Services	95,880		68,215
Cost and expenses:
Lennar Financial Services	79,778		59,965
Rialto Investments [Member]
Revenues:
Rialto Investments, Revenues	25,622		32,208
Cost and expenses:
Rialto Investments, Cost and expenses	31,771		33,370
Equity in earnings (loss) from unconsolidated entities	6,173		18,458
Other income (expense), net	1,327		(12,240)
Less: Net earnings (loss) attributable to noncontrolling interests	$ (300)		$ (4,300)

[1] Total revenues are net of sales incentives of $74.0 million ($23,300 per home delivered) for the three months ended February 28, 2013, compared to $84.5 million ($34,200 per home delivered) for the three months ended February 29, 2012.

[2] Net loss attributable to noncontrolling interests for the three months ended February 28, 2013 and February 29, 2012 includes ($0.3) million and ($4.3) million, respectively, related to the FDIC’s interest in the portfolio of real estate loans that the Company acquired in partnership with the FDIC.

XML

Lennar Financial Services Segment

3 Months Ended

Feb. 28, 2013

Lennar Financial Services Segment [Abstract]

Lennar Financial Services Segment

Lennar Financial Services Segment

The assets and liabilities related to the Lennar Financial Services segment were as follows:

(In thousands)	February 28, 2013		November 30, 2012
Assets:
Cash and cash equivalents	$	65,200	58,566
Restricted cash	12,566		12,972
Receivables, net (1)	171,580		172,230
Loans held-for-sale (2)	334,658		502,318
Loans held-for-investment, net	23,593		23,982
Investments held-to-maturity	62,746		63,924
Goodwill	34,046		34,046
Other (3)	43,776		44,957
	$	748,165	912,995
Liabilities:
Notes and other debts payable	$	311,933	457,994
Other (4)	162,616		172,978
	$	474,549	630,972

(1) Receivables, net primarily relate to loans sold to investors for which the Company had not yet been paid as of February 28, 2013 and November 30, 2012, respectively.

(2) Loans held-for-sale relate to unsold loans carried at fair value.

(3) Other assets include mortgage loan commitments carried at fair value of $12.0 million and $12.7 million as of February 28, 2013 and November 30, 2012, respectively.

(4) Other liabilities include $75.7 million and $76.1 million as of February 28, 2013 and November 30, 2012, respectively, of certain of the Company’s self-insurance reserves related to general liability and workers’ compensation. Other liabilities also include forward contracts carried at fair value of $2.1 million and $2.6 million as of February 28, 2013 and November 30, 2012, respectively.

At February 28, 2013, the Lennar Financial Services segment had a 364-day warehouse repurchase facility with a maximum aggregate commitment of $100 million and an additional uncommitted amount of $100 million that matures in February 2014, a 364-day warehouse repurchase facility with a maximum aggregate commitment of $200 million that matures in July 2013, a 364-day warehouse repurchase facility with a maximum aggregate commitment of $150 million that matures February 2014 (plus a $100 million accordion feature that is usable from 10 days prior to quarter-end through 20 days after quarter-end) and a 364-day warehouse facility with a maximum aggregate commitment of $60 million, that matures November 2013. As of February 28, 2013, the maximum aggregate commitment and uncommitted amount under these facilities totaled $610 million and $100 million, respectively.

The Lennar Financial Services segment uses these facilities to finance its lending activities until the mortgage loans are sold to investors and expects the facilities to be renewed or replaced with other facilities when they mature. Borrowings under the facilities were $311.9 million and $458.0 million at February 28, 2013 and November 30, 2012, respectively, and were collateralized by mortgage loans and receivables on loans sold to investors but not yet paid for with outstanding principal balances of $405.7 million and $509.1 million at February 28, 2013 and November 30, 2012, respectively. If the facilities are not renewed, the borrowings under the lines of credit will be paid off by selling the mortgage loans held-for-sale to investors and by collecting on receivables on loans sold but not yet paid. Without the facilities, the Lennar Financial Services segment would have to use cash from operations and other funding sources to finance its lending activities.

Substantially all of the loans the Lennar 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 agreement. There has been an increased industry-wide effort by purchasers to defray their losses during the unfavorable economic environment by purporting to have found inaccuracies related to sellers’ representations and warranties in particular loan sale agreements. The Company’s mortgage operations have established reserves for possible losses associated with mortgage loans previously originated and sold to investors. The Company establishes reserves 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 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 Lennar Financial Services’ liabilities in the condensed consolidated balance sheets. The activity in the Company’s loan origination liabilities was as follows:

	Three Months Ended
	February 28,			February 29,
(In thousands)	2013			2012
Loan origination liabilities, beginning of period	$	7,250		6,050
Provision for losses during the period	413			93
Adjustments to pre-existing provisions for losses from changes in estimates	96			8
Payments/settlements	(153		)	(190	)
Loan origination liabilities, end of period	$	7,606		5,961

For Lennar Financial Services loans held-for-investment, net, a loan is deemed impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Interest income is not accrued or recognized on impaired loans unless payment is received. Impaired loans are written-off if and when the loan is no longer secured by collateral. The total unpaid principal balance of the impaired loans as of February 28, 2013 and November 30, 2012 was $7.8 million and $7.3 million, respectively. At February 28, 2013, the recorded investment in the impaired loans with a valuation allowance was $3.4 million, net of an allowance of $4.4 million. At November 30, 2012, the recorded investment in the impaired loans with a valuation allowance was $2.9 million, net of an allowance of $4.4 million. The average recorded investment in impaired loans totaled $3.2 million and $3.6 million for the three months ended February 28, 2013 and February 29, 2012.

XML

Earnings Per Share

3 Months Ended

Feb. 28, 2013

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”) are considered participating securities.

Basic and diluted earnings per share were calculated as follows:

	Three Months Ended
	February 28,		February 29,
(In thousands, except per share amounts)	2013		2012
Numerator:
Net earnings attributable to Lennar	$	57,492	14,968
Less: distributed earnings allocated to nonvested shares	102		115
Less: undistributed earnings allocated to nonvested shares	664		113
Numerator for basic earnings per share	56,726		14,740
Plus: interest on 2.00% convertible senior notes due 2020 and     3.25% convertible senior notes due 2021	2,826		2,911
Plus: undistributed earnings allocated to convertible shares	662		113
Less: undistributed earnings reallocated to convertible shares	588		137
Numerator for diluted earnings per share	$	59,626	17,627
Denominator:
Denominator for basic earnings per share - weighted average     common shares outstanding	189,548		185,997
Effect of dilutive securities:
Shared based payments	573		883
Convertible senior notes	35,896		26,933
Denominator for diluted earnings per share - weighted average     common shares outstanding	226,017		213,813
Basic earnings per share	$	0.30	0.08
Diluted earnings per share	$	0.26	0.08

For the three months ended February 28, 2013, there were no options to purchase shares of Class A stock that were outstanding and anti-dilutive. For three months ended February 29, 2012, options to purchase 0.3 million shares of Class A stock were outstanding and anti-dilutive.

XML

Basis Of Presentation (Policy)

3 Months Ended

Feb. 28, 2013

Basis Of Presentation [Abstract]

Basis Of Consolidation

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 VIEs (see Note 15) 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, 2012. 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 months ended February 28, 2013 are not necessarily indicative of the results to be expected for the full year.

Revenue Recognition, Services, Management Fees [Policy Text Block]

Rialto Management Fees Revenue

The Rialto Investments segment provides services to a variety of legal entities and investment vehicles such as funds, joint ventures, co-invests, and other private equity structures to manage their respective investments. As a result, Rialto earns and receives management fees, underwriting fees, due diligence fees and liquidation fees on asset resolutions. The management fees and other forms of compensation to Rialto vary on a deal by deal basis and can increase after meeting certain investment hurdles. Management fees related to the Rialto Investments segment are included in Rialto Investments revenue and are recorded when contract terms are met, fees are determinable and collectability is reasonably assured. We believe the way we record Rialto Investments' management fees revenue is a significant accounting policy because it is a significant portion of Rialto Investments segment's revenues and will continue to grow in the future as the segment manages more assets.

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.

XML

Financial Instruments

3 Months Ended

Feb. 28, 2013

Fair Value Disclosures [Abstract]

Financial Instruments

Financial Instruments

The following table presents the carrying amounts and estimated fair values of financial instruments held by the Company at February 28, 2013 and November 30, 2012, 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, defeasance cash to retire notes payable, receivables, net and accounts payable, all of which had fair values approximating their carrying amounts due to the short maturities of these instruments.

		February 28, 2013			November 30, 2012
	Fair Value	Carrying		Fair	Carrying	Fair
(In thousands)	Hierarchy	Amount		Value	Amount	Value
ASSETS
Rialto Investments:
Loans receivable, net	Level 3	$	406,207	426,366	436,535	450,281
Investments held-to-maturity	Level 3	$	15,262	15,159	15,012	14,904
Lennar Financial Services:
Loans held-for-investment, net	Level 3	$	23,593	25,274	23,982	24,949
Investments held-to-maturity	Level 2	$	62,746	62,796	63,924	63,877
LIABILITIES
Lennar Homebuilding:
Senior notes and other debts payable	Level 2	$	4,505,662	5,545,976	4,005,051	5,035,670
Rialto Investments:
Notes payable	Level 2	$	270,357	264,484	574,480	568,702
Lennar Financial Services:
Notes and other debts payable	Level 2	$	311,933	311,933	457,994	457,994

The following methods and assumptions are used by the Company in estimating fair values:

Lennar Homebuilding—For senior notes and other debts payable, the fair value of fixed-rate borrowings is 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.

Rialto Investments—The fair values for loans receivable is based on discounted cash flows, or the fair value of the collateral less estimated cost to sell. The fair value for investments held-to-maturity is based on discounted cash flows. For notes payable, the fair value of the zero percent interest notes guaranteed by the FDIC was calculated based on a 2-year treasury yield, and the fair value of other notes payable was calculated based on discounted cash flows using the Company’s weighted average borrowing rate.

Lennar 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.

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:

Financial Instruments	Fair Value Hierarchy	Fair Value at February 28, 2013			Fair Value at November 30, 2012
(In thousands)
Lennar Financial Services:
Loans held-for-sale (1)	Level 2	$	334,658		502,318
Mortgage loan commitments	Level 2	$	12,008		12,713
Forward contracts	Level 2	$	(2,128	)	(2,570	)
Lennar Homebuilding:
Investments available-for-sale	Level 3	$	31,818		19,591

(1) The aggregate fair value of loans held-for-sale of $334.7 million at February 28, 2013 exceeds their aggregate principal balance of $322.3 million by $12.4 million. The aggregate fair value of loans held-for-sale of $502.3 million at November 30, 2012 exceeds their aggregate principal balance of $479.1 million by $23.2 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:

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 is included in Lennar Financial Services’ loans held-for-sale as of February 28, 2013 and November 30, 2012. Fair value of servicing rights is determined based on actual sales of servicing rights on loans with similar characteristics.

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 Lennar Financial Services segment has committed to originate the loans. The fair value of commitments to sell loan contracts is the estimated amount that the Lennar Financial Services segment would receive or pay to terminate the commitments at the reporting date based on market prices for similar financial instruments.

Forward contracts— Fair value is based on quoted market prices for similar financial instruments.

Investments available-for-sale— The fair value of these investments are based on third party valuations.

Gains and losses of Lennar Financial Services financial instruments measured at fair value from initial measurement and subsequent changes in fair value are recognized in the Lennar Financial Services segment’s operating earnings. There were no gains or losses recognized for the Lennar Homebuilding investments available-for-sale during the three months ended February 28, 2013 and February 29, 2012. The changes in fair values that are included in operating earnings are shown, by financial instrument and financial statement line item below:

	Three Months Ended
	February 28,			February 29,
(In thousands)	2013			2012
Changes in fair value included in Lennar Financial Services revenues:
Loans held-for-sale	$	(10,780	)	(1,307	)
Mortgage loan commitments	$	(705	)	1,442
Forward contracts	$	442		735

Interest income on loans held-for-sale measured at fair value is calculated based on the interest rate of the loan and recorded in interest income in the Lennar Financial Services’ statement of operations.

The following table represents a reconciliation of the beginning and ending balance for the Company’s Level 3 recurring fair value measurements (investments available-for-sale) included in the Lennar Homebuilding segment’s other assets:

	Three Months Ended
(In thousands)	February 28, 2013		February 29, 2012
Investments available-for-sale, beginning of period	$	19,591	42,892
Purchases and other (1)	12,227		14,928
Sales	—		(6,436	)
Settlements (2)	—		(33,148	)
Investments available-for-sale, end of period	$	31,818	18,236

(1) Represents investments in community development district bonds that mature at various dates between 2022 and 2042.

(2) The investments available-for-sale that were settled during the three months ended February 29, 2012 related to investments in community development district bonds, which were in default by the borrower and regarding which the Company foreclosed on the underlying real estate collateral. Therefore, these investments were reclassified from other assets to land and land under development.

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 and Rialto Investments real estate owned assets. The fair value included in the tables below represent only those assets whose carrying value were adjusted to fair value during the respective periods disclosed. The assets measured at fair value on a nonrecurring basis are summarized below:

Non-financial assets	Fair Value Hierarchy	Fair Value Three Months Ended February 28, 2013		Total Gains (Losses) (1)
(In thousands)
Lennar Homebuilding:
Finished homes and construction in progress (2)	Level 3	$	2,941	(1,255	)
Rialto Investments:
REO - held-for-sale (3)	Level 3	$	8,447	(271	)
REO - held-and-used, net (4)	Level 3	$	18,211	941

(1) Represents total losses due to valuation adjustments, total gains from acquisitions of real estate through foreclosure and REO impairments recorded during the three months ended February 28, 2013.

(2) Finished homes and construction in progress with an aggregate carrying value of $4.2 million were written down to their fair value of $2.9 million, resulting in valuation adjustments of $1.3 million, which were included in Lennar Homebuilding costs and expenses in the Company’s statement of operations for the three months ended February 28, 2013.

(3) REO, held-for-sale, assets are initially recorded at fair value less estimated costs to sell at the time of acquisition through, or in lieu of, loan foreclosure. Upon acquisition, the REO, held-for-sale, had a carrying value of $0.2 million and a fair value of $0.6 million. The fair value of REO, held-for-sale, is based upon the appraised value at the time of foreclosure or management’s best estimate. The gains upon acquisition of REO, held-for-sale, were $0.4 million. As part of management’s periodic valuations of its REO, held-for-sale, during the three months ended February 28, 2013, REO, held-for-sale, with an aggregate value of $8.5 million were written down to their fair value of $7.8 million, resulting in impairments of $0.7 million. These gains and impairments are included within Rialto Investments other income (expense), net, in the Company’s statement of operations for the three months ended February 28, 2013.

(4) REO, held-and-used, net, assets are initially recorded at fair value at the time of acquisition through, or in lieu of, loan foreclosure. Upon acquisition, the REO, held-and-used, net, had a carrying value of $15.2 million and a fair value of $16.2 million. The fair value of REO, held-and-used, net, is based upon the appraised value at the time of foreclosure or management’s best estimate. The gains upon acquisition of REO, held-and-used, net, were $1.0 million. As part of management’s periodic valuations of its REO, held-and-used, net, during the three months ended February 28, 2013, REO, held-and-used, net, with an aggregate value of $2.1 million were written down to their fair value of $2.0 million, resulting in impairments of $0.1 million. These gains and impairments are included within Rialto Investments other income (expense), net, in the Company’s statement of operations for the three months ended February 28, 2013.

Non-financial assets	Fair Value Hierarchy	Fair Value Three Months Ended February 29, 2012		Total Gains (Losses) (1)
(In thousands)
Lennar Homebuilding:
Finished homes and construction in progress (2)	Level 3	$	1,548	(2,025	)
Rialto Investments:
REO - held-for-sale (3)	Level 3	$	11,423	(462	)
REO - held-and-used, net (4)	Level 3	$	54,289	2,414

(1) Represents total losses due to valuation adjustments, total gains from acquisitions of real estate through foreclosure and REO impairments recorded during the three months ended February 29, 2012.

(2) Finished homes and construction in progress with an aggregate carrying value of $3.5 million were written down to their fair value of $1.5 million, resulting in valuation adjustments of $2.0 million, which were included in Lennar Homebuilding costs and expenses in the Company’s statement of operations for the three months ended February 29, 2012.

(3) REO, held-for-sale, assets are initially recorded at fair value less estimated costs to sell at the time of acquisition through, or in lieu of, loan foreclosure. Upon acquisition, the REO, held-for-sale, had a carrying value of $0.3 million and a fair value of $1.1 million. The fair value of REO, held-for-sale, is based upon the appraised value at the time of foreclosure or management’s best estimate. The gains upon acquisition of REO, held-for-sale, were $0.8 million. As part of management's periodic valuations of its REO, held-for-sale, during the three months ended February 29, 2012, REO, held-for-sale, with an aggregate value of $11.5 million were written down to their fair value of $10.3 million, resulting in impairments of $1.2 million. These gains and impairments are included within Rialto Investments other income (expense), net in the Company's statement of operations for the three months ended February 29, 2012.

(4) REO, held-and-used, net, assets are initially recorded at fair value at the time of acquisition through, or in lieu of, loan foreclosure. Upon acquisition, the REO, held-and-used, net, had a carrying value of $41.2 million and a fair value of $46.2 million. The fair value of REO, held-and-used, net, is based upon the appraised value at the time of foreclosure or management’s best estimate. The gains upon acquisition of REO, held-and-used, net, were $5.0 million. As part of management's periodic valuations of its REO, held-and-used, net, during the three months ended February 29, 2012, REO, held-and-used, net, with an aggregate value of $10.6 million were written down to their fair value of $8.0 million, resulting in impairments of $2.6 million. These gains and impairments are included within the Rialto Investments other income (expense), net, in the Company’s statement of operations for the three months ended February 29, 2012.

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. Inventory costs include land, land development and home construction costs, real estate taxes, deposits on land purchase contracts and interest related to development and construction. Construction overhead and selling expenses are expensed as incurred. Homes held-for-sale are classified as inventories until delivered. Land, land development, amenities and other costs are accumulated by specific area and allocated to homes within the respective areas. The Company reviews its inventory for indicators of impairment by evaluating each community during each reporting period. The inventory within each community is categorized as finished homes and construction in progress or land under development based on the development state of the community. There were 482 and 424 active communities, excluding unconsolidated entities, as of February 28, 2013 and February 29, 2012, respectively. If the undiscounted cash flows expected to be generated by a community are less than its carrying amount, an impairment charge is recorded to write down the carrying amount of such community to its estimated fair value.

In conducting its review for indicators of impairment on a community level, the Company evaluates, among other things, the margins on homes that have been delivered, margins on homes under sales contracts in backlog, projected margins with regard to future home sales over the life of the community, projected margins with regard to future land sales and the estimated fair value of the land itself. The Company pays particular attention to communities in which inventory is moving at a slower than anticipated absorption pace and communities whose average sales price and/or margins are trending downward and are anticipated to continue to trend downward. From this review, the Company identifies communities whose carrying values exceed their undiscounted cash flows.

The Company estimates the fair value of its communities using a discounted cash flow model. The projected cash flows for each community are significantly impacted by estimates related to market supply and demand, product type by community, homesite sizes, sales pace, sales prices, sales incentives, construction costs, sales and marketing expenses, the local economy, competitive conditions, labor costs, costs of materials and other factors for that particular community. Every division evaluates the historical performance of each of its communities as well as current trends in the market and economy impacting the community and its surrounding areas. These trends are analyzed for each of the estimates listed above. For example, since the start of the downturn in the housing market, the Company has found ways to reduce its construction costs in many communities, and this reduction in construction costs in addition to change in product type in many communities has impacted future estimated cash flows.

Each of the homebuilding markets in which the Company operates is unique, as homebuilding has historically been a local business driven by local market conditions and demographics. Each of the Company’s homebuilding markets has specific supply and demand relationships reflective of local economic conditions. The Company’s projected cash flows are impacted by many assumptions. Some of the most critical assumptions in the Company’s cash flow model are projected absorption pace for home sales, sales prices and costs to build and deliver homes on a community by community basis.

In order to arrive at the assumed absorption pace for home sales included in the Company’s cash flow model, the Company analyzes its historical absorption pace in the community as well as other comparable communities in the geographical area. In addition, the Company considers internal and external market studies and trends, which generally include, but are not limited to, statistics on population demographics, unemployment rates and availability of competing product in the geographic area where the community is located. When analyzing the Company’s historical absorption pace for home sales and corresponding internal and external market studies, the Company places greater emphasis on more current metrics and trends such as the absorption pace realized in its most recent quarters as well as forecasted population demographics, unemployment rates and availability of competing product. Generally, if the Company notices a variation from historical results over a span of two fiscal quarters, the Company considers such variation to be the establishment of a trend and adjusts its historical information accordingly in order to develop assumptions on the projected absorption pace in the cash flow model for a community.

In order to determine the assumed sales prices included in its cash flow models, the Company analyzes the historical sales prices realized on homes it delivered in the community and other comparable communities in the geographical area as well as the sales prices included in its current backlog for such communities. In addition, the Company considers internal and external market studies and trends, which generally include, but are not limited to, statistics on sales prices in neighboring communities and sales prices on similar products in non-neighboring communities in the geographic area where the community is located. When analyzing its historical sales prices and corresponding market studies, the Company also places greater emphasis on more current metrics and trends such as future forecasted sales prices in neighboring communities as well as future forecasted sales prices for similar products in non-neighboring communities. Generally, if the Company notices a variation from historical results over a span of two fiscal quarters, the Company considers such variation to be the establishment of a trend and adjusts its historical information accordingly in order to develop assumptions on the projected sales prices in the cash flow model for a community.

In order to arrive at the Company’s assumed costs to build and deliver homes, the Company generally assumes a cost structure reflecting contracts currently in place with its vendors adjusted for any anticipated cost reduction initiatives or increases in cost structure. Costs assumed in the cash flow model for the Company’s communities are generally based on the rates the Company is currently obligated to pay under existing contracts with its vendors adjusted for any anticipated cost reduction initiatives or increases in cost structure.

Since the estimates and assumptions included in the Company’s cash flow models are based upon historical results and projected trends, they do not anticipate unexpected changes in market conditions or strategies that may lead the Company to incur additional impairment charges in the future.

Using all available information, the Company calculates its best estimate of projected cash flows for each community. While many of the estimates are calculated based on historical and projected trends, all estimates are subjective and change from market to market and community to community as market and economic conditions change. The determination of fair value also requires discounting the estimated cash flows at a rate the Company believes a market participant would determine to be commensurate with the inherent risks associated with the assets and related estimated cash flow streams. The discount rate used in determining each asset’s fair value depends on the community’s projected life and development stage. The Company generally uses a discount rate of approximately 20%, subject to the perceived risks associated with the community’s cash flow streams relative to its inventory.

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, further market deterioration or changes in assumptions may lead to the Company incurring additional impairment charges on previously impaired inventory, as well as on inventory not currently impaired but for which indicators of impairment may arise if further market deterioration occurs.

In the three months ended February 28, 2013, the Company reviewed its communities for potential indicators of impairments and identified 24 communities with 759 homesites and a corresponding carrying value of $44.7 million as having potential indicators of impairment. Of those communities identified, the Company recorded impairments on 32 homesites in 3 communities with a corresponding carrying value of $4.2 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 three months ended February 28, 2013:

Unobservable inputs	Range
Average selling price		$163,000	-	$279,000
Absorption rate per quarter (homes)	2		-	12
Discount rate	20%

The Company evaluates its investments in unconsolidated entities for indicators of impairment during each reporting period. A series of operating losses of an investee or other factors may indicate that a decrease in value of the Company’s investment in the unconsolidated entity has occurred which is other-than-temporary. The amount of impairment recognized is the excess of the investment’s carrying amount over its estimated fair value.

The evaluation of the Company’s investment in unconsolidated entities includes certain critical assumptions made by management: (1) projected future distributions from the unconsolidated entities, (2) discount rates applied to the future distributions and (3) various other factors.

The Company’s assumptions on the projected future distributions from the unconsolidated entities are dependent on market conditions. Specifically, distributions are dependent on cash to be generated from the sale of inventory by the unconsolidated entities. Such inventory is also reviewed for potential impairment by the unconsolidated entities. The unconsolidated entities generally use a discount rate of approximately 20% in their reviews for impairment, subject to the perceived risks associated with the community’s cash flow streams relative to its inventory. If a valuation adjustment is recorded by an unconsolidated entity related to its assets, the Company’s proportionate share is reflected in the Company’s homebuilding equity in earnings (loss) from unconsolidated entities with a corresponding decrease to its investment in unconsolidated entities. In certain instances, the Company may be required to record additional losses relating to its investment in unconsolidated entities, if the Company’s investment in the unconsolidated entity, or a portion thereof, is deemed to be other than temporarily impaired. These losses are included in Lennar Homebuilding other income, net.

Additionally, the Company considers various qualitative factors to determine if a decrease in the value of the investment is other-than-temporary. These factors include age of the venture, intent and ability for the Company to recover its investment in the entity, financial condition and long-term prospects of the entity, short-term liquidity needs of the unconsolidated entity, trends in the general economic environment of the land, entitlement status of the land held by the unconsolidated entity, overall projected returns on investment, defaults under contracts with third parties (including bank debt), recoverability of the investment through future cash flows and relationships with the other partners and banks. If the Company believes that the decline in the fair value of the investment is temporary, then no impairment is recorded.

REO represents real estate that the Rialto segment has taken control or has effective control of in partial or full satisfaction of loans receivable. At the time of acquisition of a property through foreclosure of a loan, REO is recorded at fair value less estimated costs to sell if classified as held-for-sale or at fair value if classified as held-and-used, which becomes the property’s new basis. The fair values of these assets are determined in part by placing reliance on third party appraisals of the properties and/or internally prepared analyses of recent offers or prices on comparable properties in the proximate vicinity. The third party appraisals and internally developed analyses are significantly impacted by the local market economy, market supply and demand, competitive conditions and prices on comparable properties, adjusted for date of sale, location, property size, and other factors. Each REO is unique and is analyzed in the context of the particular market where the property is located. In order to establish the significant assumptions for a particular REO, the Company analyzes historical trends, including trends achieved by our local homebuilding operations, if applicable, and current trends in the market and economy impacting the REO. Using available trend information, the Company then calculates its best estimate of fair value, which can include projected cash flows discounted at a rate the Company believes a market participant would determine to be commensurate with the inherent risks associated with the assets and related estimated cash flow streams. These methods use unobservable inputs to develop fair value for the Company’s REO. Due to the volume and variance of unobservable inputs, resulting from the uniqueness of each of the Company's REO, the Company does not use a standard range of unobservable inputs with respect to its evaluation of REO. However, for operating properties within REO, the Company may also use estimated cash flows multiplied by a capitalization rate to determine the fair value of the property. For the three months ended February 28, 2013, the capitalization rates used to estimate fair value ranged from 8% to 12% and varied based on the location of the asset, asset type and occupancy rates for the operating properties.

Changes in economic factors, consumer demand and market conditions, among other things, could materially impact estimates used in the third party appraisals and/or internally prepared analyses of recent offers or prices on comparable properties. Thus, estimates can differ significantly from the amounts ultimately realized by the Rialto segment from disposition of these assets. The amount by which the recorded investment in the loan is less than the REO’s fair value (net of estimated cost to sell if held-for-sale), is recorded as an unrealized gain on foreclosure in the Company’s statement of operations. The amount by which the recorded investment in the loan is greater than the REO’s fair value (net of estimated cost to sell if held-for-sale) is initially recorded as an impairment in the Company’s statement of operations.

XML

Lennar Homebuilding Restricted Cash

3 Months Ended

Feb. 28, 2013

Lennar Homebuilding Restricted Cash [Abstract]

Lennar Homebuilding Restricted Cash

Lennar Homebuilding Restricted Cash

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.

XML

Rialto Investments Segment (Risk Indicators) (Details) (USD $) In Thousands, unless otherwise specified	Feb. 28, 2013		Nov. 30, 2012
Rialto Investments [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value	$ 372,105		$ 396,200
Nonaccrual	34,102		40,335
Notes Loans And Financing Receivable Net	406,207	[1]	436,535	[1]
Land [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value	198,344		208,268
Nonaccrual	3,750		7,827
Notes Loans And Financing Receivable Net	202,094		216,095
Single Family Homes [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value	73,953		82,652
Nonaccrual	9,046		10,555
Notes Loans And Financing Receivable Net	82,999		93,207
Commercial Properties [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value	68,206		74,273
Nonaccrual	21,306		21,953
Notes Loans And Financing Receivable Net	89,512		96,226
Multi Family Homes [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value	17,200		12,776
Nonaccrual	0		0
Notes Loans And Financing Receivable Net	17,200		12,776
Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value	14,402		18,231
Nonaccrual	0		0
Notes Loans And Financing Receivable Net	$ 14,402		$ 18,231

[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 February 28, 2013, total assets include $1,837.4 million related to consolidated VIEs of which $15.9 million is included in Lennar Homebuilding cash and cash equivalents, $6.0 million in Lennar Homebuilding receivables, net, $65.6 million in Lennar Homebuilding finished homes and construction in progress, $485.6 million in Lennar Homebuilding land and land under development, $65.9 million in Lennar Homebuilding consolidated inventory not owned, $44.5 million in Lennar Homebuilding investments in unconsolidated entities, $223.2 million in Lennar Homebuilding other assets, $63.3 million in Rialto Investments cash and cash equivalents, $4.7 million in Rialto Investments defeasance cash to retire notes payable, $318.5 million in Rialto Investments loans receivable, net, $115.3 million in Rialto Investments real estate owned, held-for-sale, $422.8 million in Rialto Investments real estate owned, held-and-used, net $0.6 million in Rialto Investments in unconsolidated entities and $5.5 million in Rialto Investments other assets.As of November 30, 2012, total assets include $2,128.6 million related to consolidated VIEs of which $13.2 million is included in Lennar Homebuilding cash and cash equivalents, $6.0 million in Lennar Homebuilding receivables, net, $57.4 million in Lennar Homebuilding finished homes and construction in progress, $482.6 million in Lennar Homebuilding land and land under development, $65.2 million in Lennar Homebuilding consolidated inventory not owned, $43.7 million in Lennar Homebuilding investments in unconsolidated entities, $224.1 million in Lennar Homebuilding other assets, $104.8 million in Rialto Investments cash and cash equivalents, $223.8 million in Rialto Investments defeasance cash to retire notes payable, $350.2 million in Rialto Investments loans receivable, net, $94.2 million in Rialto Investments real estate owned, held-for-sale, $454.9 million in Rialto Investments real estate owned, held-and-used, net, $0.7 million in Rialto Investments in unconsolidated entities and $7.8 million in Rialto Investments other assets.

XML

Rialto Investments Segment

3 Months Ended

Feb. 28, 2013

Rialto Investments Segment [Abstract]

Rialto Investments Segment

Rialto Investments Segment

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

(In thousands)	February 28, 2013		November 30, 2012
Assets:
Cash and cash equivalents	$	64,188	105,310
Defeasance cash to retire notes payable	4,655		223,813
Loans receivable, net	406,207		436,535
Real estate owned - held-for-sale	178,678		134,161
Real estate owned - held-and-used, net	547,273		601,022
Investments in unconsolidated entities	106,609		108,140
Investments held-to-maturity	15,262		15,012
Other	19,361		23,367
	$	1,342,233	1,647,360
Liabilities:
Notes payable	$	270,357	574,480
Other	14,809		26,122
	$	285,166	600,602

Rialto’s operating earnings were as follows:

	Three Months Ended
	February 28,		February 29,
(In thousands)	2013		2012
Revenues	$	25,622	32,208
Costs and expenses	31,771		33,370
Rialto Investments equity in earnings from unconsolidated entities	6,173		18,458
Rialto Investments other income (expense), net	1,327		(12,240	)
Operating earnings (1)	$	1,351	5,056

(1) Operating earnings for the three months ended February 28, 2013 and February 29, 2012 include net loss attributable to noncontrolling interests of ($0.3) million and ($4.3) million, respectively.

The following is a detail of Rialto Investments other income (expense), net for the periods indicated:

	Three Months Ended
	February 28,			February 29,
(In thousands)	2013			2012
Realized gains on REO sales, net	$	8,671		42
Unrealized gains on transfer of loans receivable to REO, net	670			1,952
REO expenses	(12,556		)	(18,074	)
Rental income	4,542			3,840
Rialto Investments other income (expense), net	$	1,327		(12,240	)

Loans Receivable

In February 2010, the Rialto segment acquired indirectly 40% managing member equity interests in two limited liability companies (“LLCs”), in partnership with the FDIC. The LLCs hold performing and non-performing loans formerly owned by 22 failed financial institutions and when the Rialto segment acquired its interests in the LLCs, the two portfolios consisted of approximately 5,500 distressed residential and commercial real estate loans (“FDIC Portfolios”). The FDIC retained 60% equity interests in the LLCs and provided $626.9 million of financing with 0% interest, which is non-recourse to the Company and the LLCs. As of February 28, 2013 and November 30, 2012, the notes payable balance was $167.2 million and $470.0 million, respectively; however, as of February 28, 2013 and November 30, 2012, $4.7 million and $223.8 million, respectively, of cash collections on loans in excess of expenses were deposited in a defeasance account, established for the repayment of the notes payable, under the agreement with the FDIC. The funds in the defeasance account are being and will be used to retire the notes payable upon their maturity. During the three months ended February 28, 2013, the LLCs retired $302.8 million principal amount of the notes payable under the agreement with the FDIC through the defeasance account. In February 2013, the Rialto segment and the FDIC entered into a forbearance agreement whereby the FDIC temporarily waived its right to reissue a new purchase money note for the remaining $11.2 million balance of the portion of the notes payable that was due on February 25, 2013 until July 25, 2013. This forbearance does not meet the definition of an extension in the financing agreement and thus, no triggering event is deemed to have occurred. The Company agreed to disburse all available funds in the defeasance account on a monthly basis to the FDIC until the remaining $11.2 million balance of the portion of the notes payable that was due on February 25, 2013 was paid in full, but no later than July 25, 2013. In March 2013, the Company paid the remaining balance of the notes payable that was due on February 25, 2013 with cash disbursed from the defeasance account.

The LLCs met the accounting definition of VIEs and since the Company was determined to be the primary beneficiary, the Company consolidated the LLCs. At February 28, 2013, these consolidated LLCs had total combined assets and liabilities of $930.7 million and $188.2 million, respectively. At November 30, 2012, these consolidated LLCs had total combined assets and liabilities of $1,236.4 million and $493.4 million, respectively.

In September 2010, the Rialto segment acquired approximately 400 distressed residential and commercial real estate loans (“Bank Portfolios”) and over 300 REO properties from three financial institutions. The Company paid $310 million for the distressed real estate and real estate related assets of which $124 million was financed through a 5-year senior unsecured note provided by one of the selling institutions of which $33.0 million of principal amount was retired in 2012.

The following table displays the loans receivable by aggregate collateral type:

(In thousands)	February 28, 2013		November 30, 2012
Land	$	202,094	216,095
Single family homes	82,999		93,207
Commercial properties	89,512		96,226
Multi-family homes	17,200		12,776
Other	14,402		18,231
Loans receivable	$	406,207	436,535

With regard to loans accounted for under ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, (“ASC 310-30”), the Rialto segment estimated the cash flows, at acquisition, it expected to collect on the FDIC Portfolios and Bank Portfolios. In accordance with ASC 310-30, the difference between the contractually required payments and the cash flows expected to be collected at acquisition is referred to as the nonaccretable difference. This difference is neither accreted into income nor recorded on the Company’s condensed consolidated balance sheets. The excess of cash flows expected to be collected over the cost of the loans acquired is referred to as the accretable yield and is recognized in interest income over the remaining life of the loans using the effective yield method.

The Rialto segment periodically evaluates its estimate of cash flows expected to be collected on its FDIC Portfolios and Bank Portfolios. These evaluations require the continued use of key assumptions and estimates, similar to those used in the initial estimate of fair value of the loans to allocate purchase price. Subsequent changes in the estimated cash flows expected to be collected may result in changes in the accretable yield and nonaccretable difference or reclassifications from nonaccretable yield to accretable yield. Increases in the cash flows expected to be collected will generally result in an increase in interest income over the remaining life of the loan or pool of loans. Decreases in expected cash flows due to further credit deterioration will generally result in an impairment charge recognized as a provision for loan losses, resulting in an increase to the allowance for loan losses.

The outstanding balance and carrying value of loans accounted for under ASC 310-30 was as follows:

(In thousands)	February 28, 2013		November 30, 2012
Outstanding principal balance	$	766,840	812,187
Carrying value	$	372,105	396,200

The activity in the accretable yield for the FDIC Portfolios and Bank Portfolios during the three months ended February 28, 2013 and February 29, 2012 were as follows:

(In thousands)	February 28, 2013			February 29, 2012
Accretable yield, beginning of period	$	112,899		209,480
Additions	18,949			1,838
Deletions	(19,915		)	(10,635	)
Accretions	(13,845		)	(21,403	)
Accretable yield, end of period	$	98,088		179,280

Additions primarily represent reclasses from nonaccretable yield to accretable yield on the portfolios. Deletions represent loan impairments and disposal of loans, which includes foreclosure of underlying collateral and result in the removal of the loans from the accretable yield portfolios.

When forecasted principal and interest cannot be reasonably estimated at the loan acquisition date, management classifies the loan as nonaccrual and accounts for these assets in accordance with ASC 310-10, Receivables (“ASC 310-10”). When a loan is classified as nonaccrual, any subsequent cash receipt is accounted for using the cost recovery method. In accordance with ASC 310-10, a loan is considered impaired when based on current information and events it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected. Although these loans met the definition of ASC 310-10, these loans were not considered impaired relative to the Company’s recorded investment at the time of acquisition since they were acquired at a substantial discount to their unpaid principal balance. A provision for loan losses is recognized when the recorded investment in the loan is in excess of its fair value. The fair value of the loan is determined by using either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral less estimated costs to sell.

The following tables represent nonaccrual loans in the FDIC Portfolios and Bank Portfolios accounted for under ASC 310-10 aggregated by collateral type:

February 28, 2013

			Recorded Investment
(In thousands)	Unpaid Principal Balance		With Allowance	Without Allowance	Total  Recorded Investment
Land	$	8,659	2,429	1,321	3,750
Single family homes	17,748		6,730	2,316	9,046
Commercial properties	32,638		692	20,614	21,306
Loans receivable	$	59,045	9,851	24,251	34,102

November 30, 2012

			Recorded Investment
(In thousands)	Unpaid Principal  Balance		With Allowance	Without Allowance	Total  Recorded Investment
Land	$	23,163	4,983	2,844	7,827
Single family homes	18,966		8,311	2,244	10,555
Commercial properties	35,996		1,006	20,947	21,953
Loans receivable	$	78,125	14,300	26,035	40,335

The average recorded investment in impaired loans totaled approximately $37 million and $69 million for the three months ended February 28, 2013 and February 29, 2012, respectively.

The loans receivable portfolios consist of loans acquired at a discount. Based on the nature of these loans, the portfolios are managed by assessing the risks related to the likelihood of collection of payments from borrowers and guarantors, as well as monitoring the value of the underlying collateral. The following are the risk categories for the loans receivable portfolios:

Accrual — Loans in which forecasted cash flows under the loan agreement, as it might be modified from time to time, can be reasonably estimated at the date of acquisition. The risk associated with loans in this category relates to the possible default by the borrower with respect to principal and interest payments and the possible decline in value of the underlying collateral and thus, both could cause a decline in the forecasted cash flows used to determine accretable yield income and the recognition of an impairment through an allowance for loan losses. As of February 28, 2013, the Company had an allowance on these loans of $16.9 million. During the three months ended February 28, 2013, the Company recorded $6.1 million of provision for loan losses offset by charge-offs of $1.4 million upon resolution of the loans. As of November 30, 2012, the Company had an allowance on these loans of $12.2 million. During the three months ended February 29, 2012, the Company did not record any provision for loan losses or charge-offs on these loans.

Nonaccrual — Loans in which forecasted principal and interest could not be reasonably estimated at the date of acquisition. Although the Company believes the recorded investment balance will ultimately be realized, the risk of nonaccrual loans relates to a decline in the value of the collateral securing the outstanding obligation and the recognition of an impairment through an allowance for loan losses if the recorded investment in the loan exceeds the fair value of the collateral less estimated cost to sell. As of February 28, 2013 and November 30, 2012, the Company had an allowance on these loans of $1.7 million and $3.7 million, respectively. During the three months ended February 28, 2013 and February 29, 2012, the Company recorded $1.0 million and $0.9 million, respectively, of provision for loan losses offset by charge-offs of $3.0 million and $1.6 million, respectively, upon foreclosure of the loans.

Accrual and nonaccrual loans receivable by risk categories were as follows:

February 28, 2013

(In thousands)	Accrual		Nonaccrual	Total
Land	$	198,344	3,750	202,094
Single family homes	73,953		9,046	82,999
Commercial properties	68,206		21,306	89,512
Multi-family homes	17,200		—	17,200
Other	14,402		—	14,402
Loans receivable	$	372,105	34,102	406,207

November 30, 2012

(In thousands)	Accrual		Nonaccrual	Total
Land	$	208,268	7,827	216,095
Single family homes	82,652		10,555	93,207
Commercial properties	74,273		21,953	96,226
Multi-family homes	12,776		—	12,776
Other	18,231		—	18,231
Loans receivable	$	396,200	40,335	436,535

In order to assess the risk associated with each risk category, the Rialto segment evaluates the forecasted cash flows and the value of the underlying collateral securing loans receivable on a quarterly basis or when an event occurs that suggest a decline in the collateral’s fair value.

Real Estate Owned

The acquisition of properties acquired through, or in lieu of, loan foreclosure are reported within the condensed consolidated balance sheets as REO held-and-used, net and REO held-for-sale. When a property is determined to be held-and-used, net, the asset is recorded at fair value and depreciated over its useful life using the straight line method. When certain criteria set forth in ASC 360, Property, Plant and Equipment, are met; the property is classified as held-for-sale. When a real estate asset is classified as held-for-sale, the property is recorded at the lower of its cost basis or fair value less estimated costs to sell. The fair value of REO held-for-sale are determined in part by placing reliance on third party appraisals of the properties and/or internally prepared analyses of recent offers or prices on comparable properties in the proximate vicinity.

Upon the acquisition of REO through loan foreclosure, gains and losses are recorded in Rialto Investments other income (expense), net. The amount by which the recorded investment in the loan is less than the REO’s fair value (net of estimated cost to sell if held-for-sale), is recorded as an unrealized gain upon foreclosure. The amount by which the recorded investment in the loan is greater than the REO’s fair value (net of estimated cost to sell if held-for-sale) is generally recorded as a provision for loan losses.

At times, the Company may foreclose on a loan from an accrual loan pool in which the removal of the loan does not cause an overall decrease in the expected cash flows of the loan pool, and as such, no provision for loan losses is required to be recorded. However, the amount by which the recorded investment in the loan is greater than the REO’s fair value (net of estimated cost to sell if held-for-sale) is recorded as an unrealized loss upon foreclosure.

The following tables present the activity in REO: 

	Three Months Ended
	February 28,			February 29,
(In thousands)	2013			2012
REO - held-for-sale, beginning of period	$	134,161		143,677
Additions	594			1,134
Improvements	1,016			3,963
Sales	(25,780		)	(36,844	)
Impairments	(699		)	(1,240	)
Transfers to/from held-and-used, net (1)	69,386			(9,111	)
REO - held-for-sale, end of period	$	178,678		101,579

	Three Months Ended
	February 28,			February 29,
(In thousands)	2013			2012
REO - held-and-used, net, beginning of period	$	601,022		582,111
Additions	16,192			46,241
Improvements	700			—
Sales	—			(981	)
Impairments	(96		)	(2,597	)
Depreciation	(1,159		)	(3,315	)
Transfers to/from held-for-sale (1)	(69,386		)	9,111
REO - held-and-used, net, end of period	$	547,273		630,570

(1) During the three months ended February 28, 2013 and February 29, 2012, the Rialto segment transferred certain properties to/from REO held-and-used, net to/from REO held-for-sale as a result of changes in the disposition strategy of the real estate assets.

For the three months ended February 28, 2013, the Company recorded $8.7 million of net gains from sales of REO. For the three months ended February 28, 2013 and February 29, 2012, the Company recorded net gains of $1.5 million and $5.8 million, respectively, from acquisitions of REO through foreclosure. These net gains are recorded in Rialto Investments other income (expense), net.

Investments

In 2010, the Rialto segment invested in approximately $43 million of non-investment grade commercial mortgage-backed securities (“CMBS”) for $19.4 million, representing a 55% discount to par value. The CMBS have a stated and assumed final distribution date of November 2020 and a stated maturity date of October 2057. The Rialto segment reviews changes in estimated cash flows periodically, to determine if other-than-temporary impairment has occurred on its investment securities. Based on the Rialto segment’s assessment, no impairment charges were recorded during both the three months ended February 28, 2013 and February 29, 2012.The carrying value of the investment securities at February 28, 2013 and November 30, 2012, was $15.3 million and $15.0 million, respectively. The Rialto segment classified these securities as held-to-maturity based on its intent and ability to hold the securities until maturity.

In 2010, 2011 and 2012, the Rialto segment obtained investors in Fund I who made equity commitments of $700 million (including $75 million committed by the Company). All capital commitments have been called and funded, and Fund I is closed to additional commitments. Fund I was determined to have the attributes of an investment company in accordance with ASC 946, Financial Services – Investment Companies, the attributes of which are different from the attributes that would cause a company to be an investment company for purposes of the Investment Company Act of 1940. As a result, Fund I’s assets and liabilities are recorded at fair value with increases/decreases in fair value recorded in the statement of operations of Fund I, the Company’s share of which are recorded in the Rialto Investments equity in earnings from unconsolidated entities financial statement line item.

During the three months ended February 28, 2013, the Company received distributions of $7.7 million as a return of capital. During the three months ended February 29, 2012, the Company contributed $7.3 million to Fund I. As of February 28, 2013 and November 30, 2012, the carrying value of the Company’s investment in Fund I was $97.6 million and $98.9 million, respectively. For the three months ended February 28, 2013 and February 29, 2012, the Company’s share of earnings from Fund I was $6.4 million and $7.6 million, respectively.

Additionally, another subsidiary in the Rialto segment has approximately a 5% investment in a service and infrastructure provider to the residential home loan market (the “Servicer Provider”), which provides services to the consolidated LLCs, among others. As of both February 28, 2013 and November 30, 2012, the carrying value of the Company’s investment in the Servicer Provider was $8.4 million.

In December 2012, the Rialto segment completed the first closing of and Real Estate Fund II, LP ("Fund II") with initial equity commitments of approximately $260 million, including $100 million committed by the Company. No cash was funded at the time of the closing. Fund II's objective during its three-year investment period is to invest in distressed real estate assets and other related investments that fit Fund II's investment parameters. In March 2013, $75 million of the $260 million in equity commitments was called, of which, the Company contributed its portion of approximately $29 million.

Summarized condensed financial information on a combined 100% basis related to Rialto’s investments in unconsolidated entities that are accounted for by the equity method was as follows:

Balance Sheets

(In thousands)	February 28, 2013		November 30, 2012
Assets:
Cash and cash equivalents	$	82,820	299,172
Loans receivable	388,033		361,286
Real estate owned	187,413		161,964
Investment securities	234,505		182,399
Investments in real estate partnerships	127,931		72,903
Other assets	182,528		199,839
	$	1,203,230	1,277,563
Liabilities and equity:
Accounts payable and other liabilities	$	145,115	155,928
Notes payable	80,213		120,431
Partner loans	163,516		163,516
Equity	814,386		837,688
	$	1,203,230	1,277,563

Statements of Operations

	Three Months Ended
	February 28,		February 29,
(In thousands)	2013		2012
Revenues	$	53,343	122,405
Costs and expenses	59,114		51,185
Other income, net (1)	56,001		266,440
Net earnings of unconsolidated entities	$	50,230	337,660
Rialto Investments equity in earnings from unconsolidated entities	$	6,173	18,458

(1) Other income, net, for the three months ended February 29, 2012 includes the AB PPIP Fund's mark-to-market unrealized gains and unrealized losses, all of which the Company’s portion is a small percentage.

XML

Lennar Homebuilding Cash And Cash Equivalents

3 Months Ended

Feb. 28, 2013

Cash and Cash Equivalents [Abstract]

Lennar Homebuilding Cash And Cash Equivalents

Lennar Homebuilding Cash and Cash Equivalents

Cash and cash equivalents as of February 28, 2013 and November 30, 2012 included $134.1 million and $193.0 million, respectively, of cash held in escrow for approximately three days.

XML

Lennar Homebuilding Senior Notes And Other Debts Payable

3 Months Ended

Feb. 28, 2013

Debt Disclosure [Abstract]

Lennar Homebuilding Senior Notes And Other Debts Payable

Lennar Homebuilding Senior Notes and Other Debts Payable

(Dollars in thousands)	February 28, 2013		November 30, 2012
5.95% senior notes due 2013	$	62,932	62,932
5.50% senior notes due 2014	249,294		249,294
5.60% senior notes due 2015	500,651		500,769
6.50% senior notes due 2016	249,868		249,851
4.75% senior notes due 2017	400,000		400,000
12.25% senior notes due 2017	394,871		394,457
4.125% senior notes due 2018	274,995		—
6.95% senior notes due 2018	248,017		247,873
2.00% convertible senior notes due 2020	276,500		276,500
2.75% convertible senior notes due 2020	405,331		401,787
3.25% convertible senior notes due 2021	400,000		400,000
4.750% senior notes due 2022	521,628		350,000
Mortgages notes on land and other debt	521,575		471,588
	$	4,505,662	4,005,051

At February 28, 2013, the Company had a $150 million Letter of Credit and Reimbursement Agreement ("LC Agreement") with certain financial institutions, which may be increased to $200 million, but for which there are currently no commitments for the additional $50 million. In addition, at February 28, 2013, the Company also had a $50 million Letter of Credit and Reimbursement Agreement with certain financial institutions that had a $50 million accordion feature for which there are currently no commitments, and a $200 million Letter of Credit Facility with a financial institution. Additionally, in May 2012, the Company entered into a 3-year unsecured revolving credit facility (the "Credit Facility") with certain financial institutions that expires in May 2015. As of February 28, 2013, the maximum aggregate commitment under the Credit Facility was $525 million, of which $500 million was committed and $25 million was available through an accordion feature, subject to additional commitments. As of February 28, 2013, the Company had no outstanding borrowings under the Credit Facility. The Company believes it was in compliance with its debt covenants at February 28, 2013.

The Company’s performance letters of credit outstanding were $115.8 million and $107.5 million, respectively, at February 28, 2013 and November 30, 2012. The Company’s financial letters of credit outstanding were $209.0 million and $204.7 million, respectively, at February 28, 2013 and November 30, 2012. Performance letters of credit are generally posted with regulatory bodies to guarantee the Company’s performance of certain development and construction activities, and 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 February 28, 2013, the Company had outstanding performance and surety bonds related to site improvements at various projects (including certain projects in the Company’s joint ventures) of $614.7 million. 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 February 28, 2013, there were approximately $360.6 million, or 59%, 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.

During the three months ended February 28, 2013, the Company issued $275 million aggregate principal amount of 4.125% senior notes due 2018 (the "4.125% Senior Notes") at a price of 99.998% in a private placement and an additional $175 million aggregate principal amount of its 4.750% senior notes due 2022 ("4.750% Senior Notes") at a price of 98.073% in a private placement. Proceeds from the offerings, after payment of expenses, were $272.0 million and $172.2 million, respectively. The Company will use the net proceeds of the sale of the 4.125% Senior Notes and the 4.750% Senior Notes for working capital and general corporate purposes, which may include repayment or repurchase of its other outstanding senior notes. Interest on the 4.125% Senior Notes is due semi-annually beginning September 15, 2013. The 4.125% Senior Notes are unsecured and unsubordinated, but are guaranteed by substantially all of the Company's 100% owned homebuilding subsidiaries. Interest on the 4.750% Senior Notes is due semi-annually beginning May 15, 2013. The 4.750% Senior Notes are unsecured and unsubordinated, but are guaranteed by substantially all of the Company's 100% owned homebuilding subsidiaries. At February 28, 2013, the carrying amount of the 4.125% Senior Notes was $275.0 million. At February 28, 2013 and November 30, 2012, the carrying amount of the 4.750% Senior Notes was $521.6 million and $350.0 million, respectively.

In November 2011, the Company issued $350 million aggregate principal amount of 3.25% convertible senior notes due 2021 (the “3.25% Convertible Senior Notes”). During the three months ended February 29, 2012, the initial purchasers of the 3.25% Convertible Senior Notes purchased an additional $50 million aggregate principal amount to cover over-allotments. At both February 28, 2013 and November 30, 2012, the carrying and principal amount of the 3.25% Convertible Senior Notes was $400.0 million. The 3.25% Convertible Senior Notes are convertible into shares of Class A common stock at any time prior to maturity or redemption at the initial conversion rate of 42.5555 shares of Class A common stock per $1,000 principal amount of the 3.25% Convertible Senior Notes or 17,022,200 Class A common shares if all the 3.25% Convertible Senior Notes are converted, which is equivalent to an initial conversion price of approximately $23.50 per share of Class A common stock, subject to anti-dilution adjustments. The shares are included in the calculation of diluted earnings per share. Holders of the 3.25% Convertible Senior Notes have the right to require the Company to repurchase them for cash equal to 100% of their principal amount, plus accrued but unpaid interest on November 15, 2016.The Company has the right to redeem the 3.25% Convertible Senior Notes at any time on or after November 20, 2016 for 100% of their principal amount, plus accrued but unpaid interest. The 3.25% Convertible Senior Notes are unsecured and unsubordinated, but are guaranteed by substantially all of the Company's 100% owned homebuilding subsidiaries.

The 2.75% convertible senior notes due 2020 (the “2.75% Convertible Senior Notes”) are convertible into cash, shares of Class A common stock or a combination of both, at the Company’s election. However, it is the Company’s intent to settle the face value of the 2.75% Convertible Senior Notes in cash. Prior to the second quarter of 2012, the shares were not historically included in the calculation of diluted earnings per share primarily because it is the Company’s intent to settle the face value of the 2.75% Convertible Senior Notes in cash and the Company's volume weighted average stock price did not exceed the conversion price. However, the Company’s volume weighted average stock price for the three months ended February 28, 2013 was $39.54, which exceeded the conversion price, thus 8.9 million shares were included in the calculation of diluted earnings per share. Holders may convert the 2.75% Convertible Senior Notes at the initial conversion rate of 45.1794 shares of Class A common stock per $1,000 principal amount or 20,150,012 Class A common shares if all the 2.75% Convertible Senior Notes are converted, which is equivalent to an initial conversion price of approximately $22.13 per share of Class A common stock. Holders of the 2.75% Convertible Senior Notes have the right to require the Company to repurchase them for cash equal to 100% of their principal amount, plus accrued but unpaid interest, on December 15, 2015.The Company has the right to redeem the 2.75% Convertible Senior Notes at any time on or after December 20, 2015 for 100% of their principal amount, plus accrued but unpaid interest. The 2.75% Convertible Senior Notes are unsecured and unsubordinated, but are guaranteed by substantially all of the Company's 100% owned homebuilding subsidiaries.

Certain provisions under ASC 470, Debt, require the issuer of certain convertible debt instruments that may be settled in cash on conversion to separately account for the liability and equity components of the instrument in a manner that reflects the issuer’s non-convertible debt borrowing rate. The Company has applied these provisions to its 2.75% Convertible Senior Notes. At both February 28, 2013 and November 30, 2012, the principal amount of the 2.75% Convertible Senior Notes was $446.0 million. At February 28, 2013 and November 30, 2012, the carrying amount of the equity component included in stockholders’ equity was $40.7 million and $44.2 million, respectively, and the net carrying amount of the 2.75% Convertible Senior Notes included in Lennar Homebuilding senior notes and other debts payable was $405.3 million and $401.8 million, respectively.

The 2.00% convertible senior notes due 2020 (the “2.00% Convertible Senior Notes”) are convertible into shares of Class A common stock at the initial conversion rate of 36.1827 shares of Class A common stock per $1,000 principal amount of the 2.00% Convertible Senior Notes or 10,004,517 Class A common shares if all the 2.00% Convertible Senior Notes are converted, which is equivalent to an initial conversion price of approximately $27.64 per share of Class A common stock, subject to anti-dilution adjustments. The shares are included in the calculation of diluted earnings per share. At both February 28, 2013 and November 30, 2012, the carrying and principal amount of the 2.00% Convertible Senior Notes was $276.5 million. Holders of the 2.00% Convertible Senior Notes have the right to require the Company to repurchase them for cash equal to 100% of their principal amount, plus accrued but unpaid interest, on each of December 1, 2013 and December 1, 2015.The Company has the right to redeem the 2.00% Convertible Senior Notes at any time on or after December 1, 2013 for 100% of their principal amount, plus accrued but unpaid interest. The 2.00% Convertible Senior Notes are unsecured and unsubordinated, but are guaranteed by substantially all of the Company's 100% owned homebuilding subsidiaries.

Although the guarantees by substantially all of the Company's 100% owned homebuilding subsidiaries 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.

XML

Lennar Homebuilding Senior Notes And Other Debts Payable (Narrative) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		1 Months Ended			1 Months Ended	3 Months Ended												1 Months Ended	3 Months Ended					3 Months Ended		3 Months Ended						1 Months Ended						3 Months Ended
	Feb. 28, 2013	Feb. 29, 2012	May 31, 2010 2.00% Convertible Senior Notes Due 2020 [Member]	Feb. 28, 2013 2.00% Convertible Senior Notes Due 2020 [Member]	Nov. 30, 2012 2.00% Convertible Senior Notes Due 2020 [Member]	Nov. 30, 2010 2.75% Convertible Senior Notes Due 2020 [Member]	Feb. 28, 2013 2.75% Convertible Senior Notes Due 2020 [Member]	Nov. 30, 2012 2.75% Convertible Senior Notes Due 2020 [Member]	Feb. 28, 2013 5.95% Senior Notes Due 2013 [Member]	Nov. 30, 2012 5.95% Senior Notes Due 2013 [Member]	Feb. 28, 2013 5.50% Senior Notes Due 2014 [Member]	Nov. 30, 2012 5.50% Senior Notes Due 2014 [Member]	Feb. 28, 2013 5.60% Senior Notes Due 2015 [Member]	Nov. 30, 2012 5.60% Senior Notes Due 2015 [Member]	Feb. 28, 2013 6.50% Senior Notes Due 2016 [Member]	Nov. 30, 2012 6.50% Senior Notes Due 2016 [Member]	Feb. 28, 2013 6.95% Senior Notes Due 2018 [Member]	Nov. 30, 2012 6.95% Senior Notes Due 2018 [Member]	Nov. 30, 2011 3.25% Convertible Senior Notes Due 2021 [Member]	Feb. 29, 2012 3.25% Convertible Senior Notes Due 2021 [Member]	Feb. 28, 2013 3.25% Convertible Senior Notes Due 2021 [Member]	Nov. 30, 2012 3.25% Convertible Senior Notes Due 2021 [Member]	Feb. 28, 2013 4.75% Senior Notes Due 2017 [Member]	Nov. 30, 2012 4.75% Senior Notes Due 2017 [Member]	Feb. 28, 2013 4.125% Senior Notes Due 2018 [Member]	Nov. 30, 2012 4.125% Senior Notes Due 2018 [Member]	Feb. 28, 2013 4.750% Senior Notes Due 2022 [Member]	Nov. 30, 2012 4.750% Senior Notes Due 2022 [Member]	Feb. 28, 2013 Letter of Credit Agreement 1 [Member]	Feb. 28, 2013 Letter Of Credit Agreement 2 [Member]	Feb. 28, 2013 Letter Of Credit Agreement 3 [Member]	Feb. 28, 2013 Letter of Credit Agreement 4 [Member]	May 31, 2010 Holders Of Debt Instrument [Member] 2.00% Convertible Senior Notes Due 2020 [Member]	Nov. 30, 2010 Holders Of Debt Instrument [Member] 2.75% Convertible Senior Notes Due 2020 [Member]	Nov. 30, 2011 Holders Of Debt Instrument [Member] 3.25% Convertible Senior Notes Due 2021 [Member]	May 31, 2010 Company Conversion Right To Debt Instrument [Member] 2.00% Convertible Senior Notes Due 2020 [Member]	Nov. 30, 2010 Company Conversion Right To Debt Instrument [Member] 2.75% Convertible Senior Notes Due 2020 [Member]	Nov. 30, 2011 Company Conversion Right To Debt Instrument [Member] 3.25% Convertible Senior Notes Due 2021 [Member]	Feb. 28, 2013 Lennar Homebuilding [Member]	Feb. 28, 2013 Lennar Homebuilding [Member] 2.00% Convertible Senior Notes Due 2020 [Member]	Nov. 30, 2012 Lennar Homebuilding [Member] 2.00% Convertible Senior Notes Due 2020 [Member]	Feb. 28, 2013 Lennar Homebuilding [Member] 2.75% Convertible Senior Notes Due 2020 [Member]	Nov. 30, 2012 Lennar Homebuilding [Member] 2.75% Convertible Senior Notes Due 2020 [Member]	Feb. 28, 2013 Lennar Homebuilding [Member] 5.95% Senior Notes Due 2013 [Member]	Nov. 30, 2012 Lennar Homebuilding [Member] 5.95% Senior Notes Due 2013 [Member]	Feb. 28, 2013 Lennar Homebuilding [Member] 5.50% Senior Notes Due 2014 [Member]	Nov. 30, 2012 Lennar Homebuilding [Member] 5.50% Senior Notes Due 2014 [Member]	Feb. 28, 2013 Lennar Homebuilding [Member] 5.60% Senior Notes Due 2015 [Member]	Nov. 30, 2012 Lennar Homebuilding [Member] 5.60% Senior Notes Due 2015 [Member]	Feb. 28, 2013 Lennar Homebuilding [Member] 6.50% Senior Notes Due 2016 [Member]	Nov. 30, 2012 Lennar Homebuilding [Member] 6.50% Senior Notes Due 2016 [Member]	Feb. 28, 2013 Lennar Homebuilding [Member] 6.95% Senior Notes Due 2018 [Member]	Nov. 30, 2012 Lennar Homebuilding [Member] 6.95% Senior Notes Due 2018 [Member]	Feb. 28, 2013 Lennar Homebuilding [Member] 3.25% Convertible Senior Notes Due 2021 [Member]	Nov. 30, 2012 Lennar Homebuilding [Member] 3.25% Convertible Senior Notes Due 2021 [Member]	Feb. 28, 2013 Lennar Homebuilding [Member] 4.75% Senior Notes Due 2017 [Member]	Nov. 30, 2012 Lennar Homebuilding [Member] 4.75% Senior Notes Due 2017 [Member]	Feb. 28, 2013 Lennar Homebuilding [Member] Performance Letters Of Credit [Member]	Nov. 30, 2012 Lennar Homebuilding [Member] Performance Letters Of Credit [Member]	Feb. 28, 2013 Lennar Homebuilding [Member] Financial Letters Of Credit [Member]	Nov. 30, 2012 Lennar Homebuilding [Member] Financial Letters Of Credit [Member]
Debt Instrument [Line Items]
Outstanding revolving credit facility																																$ 0
Line of credit facility current borrowing capacity																													150,000	50,000	200,000	500,000
Line of credit facility maximum borrowing capacity																													200,000			525,000
Letter of credit facility additional capacity																													50,000	50,000		25,000
Letters of credit outstanding, amount																																																										115,800	107,500	209,000	204,700
Outstanding performance and surety bonds																																							614,700
Uncompleted site improvements amount																																							360,600
Uncompleted site improvements percent																																							59.00%
Debt instrument, principal amount				276,500	276,500		446,000	446,000											350,000		400,000	400,000			275,000		175,000
Interest rate			2.00%	2.00%		2.75%	2.75%		5.95%		5.50%		5.60%		6.50%		6.95%		3.25%		3.25%		4.75%		4.125%			4.75%												2.00%	2.00%	2.75%	2.75%	5.95%	5.95%	5.50%	5.50%	5.60%	5.60%	6.50%	6.50%	6.95%	6.95%	3.25%	3.25%	4.75%	4.75%
Private Placement Price, Percent of Face Value																									99.998%		98.073%
Net Proceeds From Senior Notes	445,270																								272,000		172,200
Debt instrument, additional principal amount																				50,000
Senior Notes				276,500	276,500		405,331	401,787	62,932	62,932	249,294	249,294	500,651	500,769	249,868	249,851	248,017	247,873			400,000	400,000	400,000	400,000	274,995	0	521,628	350,000
Debt instrument, convertible, conversion ratio			36.1827			45.1794													42.5555
Debt conversion, converted instrument, per principal amount			1			1													1
Debt conversion, converted instrument, shares issued			10,004,517			20,150,012													17,022,200
Debt instrument, convertible, conversion price			$ 27.64			$ 22.13													$ 23.50
Debt instrument, unamortized discount							40,700	44,200
Debt instrument convertible terms of conversion feature																																	Holders of the 2.00% Convertible Senior Notes have the right to require the Company to repurchase them for cash equal to 100% of their principal amount, plus accrued but unpaid interest, on each of December 1, 2013 and December 1, 2015.	Holders of the 2.75% Convertible Senior Notes have the right to require the Company to repurchase them for cash equal to 100% of their principal amount, plus accrued but unpaid interest, on December 15, 2015.	Holders of the 3.25% Convertible Senior Notes have the right to require the Company to repurchase them for cash equal to 100% of their principal amount, plus accrued but unpaid interest on November 15, 2016.	The Company has the right to redeem the 2.00% Convertible Senior Notes at any time on or after December 1, 2013 for 100% of their principal amount, plus accrued but unpaid interest.	The Company has the right to redeem the 2.75% Convertible Senior Notes at any time on or after December 20, 2015 for 100% of their principal amount, plus accrued but unpaid interest.	The Company has the right to redeem the 3.25% Convertible Senior Notes at any time on or after November 20, 2016 for 100% of their principal amount, plus accrued but unpaid interest.
Volume weighted average stock price							$ 39.54
Shares included in the calculation of diluted earnings per share	35,896,000	26,933,000					8,900,000
Guarantee By Subsidiaries	$ 75,000

XML

Product Warranty (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Feb. 28, 2013 homes	Feb. 29, 2012	Nov. 30, 2012	Nov. 30, 2011
Product Warranty [Line Items]
Chinese drywall number of homes	1,010
Chinese drywall percentage of homes	1.20%
Chinese drywall number of homes resolved through class action	40
Chinese drywall accrual	$ 82,200
Warranties issued during the period	8,759	6,855
Warranty reserve, net of payments	85,208	85,717	84,188	88,120
Chinese Drywall [Member]
Product Warranty [Line Items]
Warranties issued during the period	0
Warranty reserve, net of payments	$ 2,500		$ 2,900

XML

Lennar Homebuilding Cash And Cash Equivalents (Details) (USD $) In Millions, unless otherwise specified	Feb. 28, 2013	Nov. 30, 2012
Cash and Cash Equivalents [Abstract]
Cash held in escrow	$ 134.1	$ 193.0

XML

Consolidation Of Variable Interest Entities (Tables)

3 Months Ended

Feb. 28, 2013

Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure [Abstract]

Estimated Maximum Exposure To Loss

The Company’s recorded investment in VIEs that are unconsolidated and its estimated maximum exposure to loss were as follows:

As of February 28, 2013

(In thousands)	Investments in Unconsolidated VIEs		Lennar’s Maximum Exposure to Loss
Lennar Homebuilding (1)	$	90,300	117,204
Rialto Investments (2)	23,626		23,626
	$	113,926	140,830

As of November 30, 2012

(In thousands)	Investments in Unconsolidated VIEs		Lennar’s Maximum Exposure to Loss
Lennar Homebuilding (1)	$	85,500	109,278
Rialto Investments (2)	23,587		23,587
	$	109,087	132,865

(1) At February 28, 2013, the maximum exposure to loss of Lennar Homebuilding’s investments in unconsolidated VIEs is limited to its investment in the unconsolidated VIEs, except with regard to $15.0 million of recourse debt of one of the unconsolidated VIEs, which is included in the Company’s maximum recourse related to Lennar Homebuilding unconsolidated entities, and $11.6 million of letters of credit outstanding for certain of the unconsolidated VIEs that in the event of default under its debt agreement the letter of credit will be drawn upon. At November 30, 2012, the maximum exposure to loss of Lennar Homebuilding’s investments in unconsolidated VIEs is limited to its investment in the unconsolidated VIEs, except with regard to $18.7 million of recourse debt of one of the unconsolidated VIEs, which is included in the Company’s maximum recourse related to Lennar Homebuilding unconsolidated entities and $4.8 million of letters of credit outstanding for certain of the unconsolidated VIEs that in the event of default under its debt agreement the letter of credit will be drawn upon.

(2) At both February 28, 2013 and November 30, 2012, the maximum recourse exposure to loss of Rialto’s investment in unconsolidated VIEs was its investments in unconsolidated entities. At February 28, 2013 and November 30, 2012, investments in unconsolidated VIEs and Lennar’s maximum exposure to loss include $15.3 million and $15.0 million, respectively, related to Rialto’s investments held-to-maturity.

XML

Lennar Financial Services Segment (Schedule Of Loan Origination Liabilities) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Feb. 28, 2013	Feb. 29, 2012
Lennar Financial Services Segment [Abstract]
Loan origination liabilities, beginning of period	$ 7,250	$ 6,050
Provision for losses during the period	413	93
Adjustments to pre-existing provisions for losses from changes in estimates	96	8
Payments/settlements	(153)	(190)
Loan origination liabilities, end of period	$ 7,606	$ 5,961

XML

New Accounting Pronouncements

3 Months Ended

Feb. 28, 2013

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New Accounting Pronouncements

New Accounting Pronouncements

In June 2011, the FASB issued ASU 2011-05, Presentation of Comprehensive Income, (“ASU 2011-05”). ASU 2011-05 requires the presentation of comprehensive income in either (1) a continuous statement of comprehensive income or (2) two separate but consecutive statements. ASU 2011-05 was effective for the Company’s quarter ended February 28, 2013. The adoption of ASU 2011-05 did not have a material effect on the Company’s condensed consolidated financial statements, but required a change in the presentation of the Company’s comprehensive income from the notes of the consolidated financial statements to the face of the condensed consolidated financial statements.

In September 2011, the FASB issued ASU 2011-08, Testing Goodwill for Impairment, (“ASU 2011-08”), which amends the guidance in ASC 350-20, Intangibles – Goodwill and Other – Goodwill. Under ASU 2011-08, entities have the option of performing a qualitative assessment before calculating the fair value of the reporting unit when testing goodwill for impairment. If the fair value of the reporting unit is determined, based on qualitative factors, to be more likely than not less than the carrying amount of the reporting unit, then entities are required to perform the two-step goodwill impairment test. ASU 2011-08 was effective for the Company’s fiscal year beginning December 1, 2012. The adoption of ASU 2011-08 did not have a material effect on the Company’s condensed consolidated financial statements.

XML

Stockholders' Equity (Tables)

3 Months Ended

Feb. 28, 2013

Stockholders' Equity Note [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 three months ended February 28, 2013 and February 29, 2012:

				Stockholders’ Equity
(In thousands)	Total Equity			Class A Common Stock	Class B Common Stock	Additional Paid in Capital	Treasury Stock		Retained Earnings		Noncontrolling Interests
Balance at November 30, 2012	$	4,001,208		17,240	3,298	2,421,941	(632,846	)	1,605,131		586,444
Net earnings (including net loss    attributable to noncontrolling    interests)	56,958			—	—	—	—		57,492		(534	)
Employee stock and directors    plans	21,668			33	—	4,487	17,148		—		—
Tax benefit from employee stock    plans and vesting of restricted    stock	3,164			—	—	3,164	—		—		—
Amortization of restricted stock	6,486			—	—	6,486	—		—		—
Cash dividends	(7,693		)	—	—	—	—		(7,693	)	—
Receipts related to    noncontrolling interests	434			—	—	—	—		—		434
Payments related to    noncontrolling interests	(12,585		)	—	—	—	—		—		(12,585	)
Balance at February 28, 2013	$	4,069,640		17,273	3,298	2,436,078	(615,698	)	1,654,930		573,759

				Stockholders’ Equity
(In thousands)	Total Equity			Class A Common Stock	Class B Common Stock	Additional Paid in Capital	Treasury Stock		Retained Earnings		Noncontrolling Interests
Balance at November 30, 2011	$	3,303,525		16,910	3,298	2,341,079	(621,220	)	956,401		607,057
Net earnings (including net    loss attributable to    noncontrolling interests)	7,977			—	—	—	—		14,968		(6,991	)
Employee stock and directors    plans	11,646			46	—	6,078	5,522		—		—
Amortization of restricted stock	7,276			—	—	7,276	—		—		—
Cash dividends	(7,562		)	—	—	—	—		(7,562	)	—
Receipts related to    noncontrolling interests	391			—	—	—	—		—		391
Balance at February 29, 2012	$	3,323,253		16,956	3,298	2,354,433	(615,698	)	963,807		600,457

XML

Lennar Financial Services Segment (Narrative) (Details) (Lennar Financial Services [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended
	Feb. 28, 2013	Feb. 29, 2012	Nov. 30, 2012
Segment Reporting Information [Line Items]
Maximum aggregate commitment	$ 610,000
Additional uncommitted amount	100,000
Borrowings under the facilities	311,900		458,000
Collateralized mortgage loans and receivable loans sold to investors but not yet paid, principal balances	405,700		509,100
Impaired financing receivable, unpaid principal balance	7,800		7,300
Impaired financing receivable, recorded investment	3,400		2,900
Impaired financing receivable, related allowance	4,400		4,400
Impaired financing receivable, average recorded investment	3,200	3,600
Warehouse Repurchase Facility 1 [Member]
Segment Reporting Information [Line Items]
Maximum aggregate commitment	100,000
Additional uncommitted amount	100,000
Maturity date	February 2014
Warehouse Repurchase Facility 2 [Member]
Segment Reporting Information [Line Items]
Maximum aggregate commitment	150,000
Additional Committed Borrowing Capacity under the Credit Facility	100,000
Maturity date	February 2014
Warehouse Agreement Borrowings [Member]
Segment Reporting Information [Line Items]
Maximum aggregate commitment	200,000
Maturity date	July 2013
Warehouse Repurchase Facility 3 [Member]
Segment Reporting Information [Line Items]
Maximum aggregate commitment	$ 60,000
Maturity date	November 2013

XML

Lennar Homebuilding Investments In Unconsolidated Entities (Balance Sheets) (Details) (Lennar Homebuilding [Member], USD $) In Thousands, unless otherwise specified	Feb. 28, 2013	Nov. 30, 2012
Lennar Homebuilding [Member]
Schedule of Equity Method Investments [Line Items]
Cash and cash equivalents	$ 167,418	$ 157,340
Inventories	2,802,210	2,792,064
Other assets	183,024	250,940
Total Assets	3,152,652	3,200,344
Accounts payable and other liabilities	255,369	310,496
Debt	718,154	759,803
Equity	2,179,129	2,130,045
Total liabilities and equity	$ 3,152,652	$ 3,200,344

XML

Condensed Consolidated Statements Of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Feb. 28, 2013		Feb. 29, 2012
Cash flows from operating activities:
Net earnings (including net earnings (loss) attributable to noncontrolling interests)	$ 56,958		$ 7,977
Adjustments to reconcile net earnings (including net earnings (loss) attributable to noncontrolling interests) to net cash provided by (used in) operating activities:
Depreciation and amortization	6,333		7,630
Amortization of discount/premium on debt, net	5,540		5,371
Share based compensation expense	6,486		8,161
Tax benefit from share-based awards	3,164		0
Excess tax benefits from share-based awards	(3,013)		0
Deferred income tax benefit	(7,730)		0
Changes in assets and liabilities:
Decrease in restricted cash	417		773
Decrease in receivables	(240)		101,672
Increase in inventories, excluding valuation adjustments and write-offs of option deposits and pre-acquisition costs	(514,597)		(172,159)
Increase in other assets	5,559		(1,183)
Decrease in accounts payable and other liabilities	(41,108)		(103,149)
Net cash provided by (used in) operating activities	(321,492)		(132,444)
Cash flows from investing activities:
Net disposals (additions) of operating properties and equipment	(1,261)		1,140
Net cash provided by (used in) investing activities	260,046		156,706
Cash flows from financing activities:
Proceeds from Issuance of Senior Long-term Debt	450,000		50,000
Debt issuance costs	(4,730)		(1,035)
Principal repayments on Rialto Investments notes payable	(304,123)		(170,026)
Proceeds from other borrowings	58,092		28,090
Principal payments on other borrowings	(63,926)		(20,267)
Exercise of land option contracts from an unconsolidated land investment venture	(1,270)		(4,628)
Receipts related to noncontrolling interests	434		391
Payments related to noncontrolling interests	(12,585)		0
Excess tax benefits from share-based awards	3,013		0
Common stock:
Issuances	21,668		10,761
Payments of Ordinary Dividends, Common Stock	(7,693)		(7,562)
Net cash used in financing activities	(7,181)		(264,960)
Net decrease in cash and cash equivalents	(68,627)		(240,698)
Cash and cash equivalents at beginning of period	1,310,743		1,163,604
Cash and cash equivalents at end of period	1,242,116		922,906
Lennar Homebuilding [Member]
Adjustments to reconcile net earnings (including net earnings (loss) attributable to noncontrolling interests) to net cash provided by (used in) operating activities:
Equity in earnings from unconsolidated entities	867		(1,083)
Distributions of earnings from unconsolidated entities	53		126
Valuation adjustments and write-offs of option deposits and pre-acquisition costs, other receivables and other assets	1,713		2,326
Cash flows from investing activities:
Investments in and contributions to unconsolidated entities	(14,708)		(26,810)
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital	17,456		9,897
Purchases of Lennar Homebuilding investments available-for-sale	(15,417)		(2,408)
Proceeds from sales of Lennar Homebuilding investments available-for-sale	0		6,436
Common stock:
Cash and cash equivalents at beginning of period	1,146,867	[1]
Cash and cash equivalents at end of period	1,112,728	[1]	792,165
Supplemental disclosures of non-cash investing and financing activities:
Non-cash contributions to unconsolidated entities	16,734		1,314
Inventory acquired in satisfaction of other assets including investments available-for-sale	0		90,385
Non-cash purchases of investments available-for-sale	0		12,520
Purchases of inventories financed by sellers	59,821		49,615
Rialto Investments [Member]
Adjustments to reconcile net earnings (including net earnings (loss) attributable to noncontrolling interests) to net cash provided by (used in) operating activities:
Equity in earnings from unconsolidated entities	(6,173)		(18,458)
Distributions of earnings from unconsolidated entities	107		757
Unrealized and realized gains on Rialto Investments real estate owned	(10,136)		(5,831)
Valuation adjustments and write-offs of option deposits and pre-acquisition costs, other receivables and other assets	7,885		4,748
Cash flows from investing activities:
Investments in and contributions to unconsolidated entities	0		(7,294)
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital	7,680		81
Decrease (increase) in Rialto Investments defeasance cash to retire notes payable	219,158		108,163
Receipts Of Principal Payments On Loans Receivable	18,434		33,549
Proceeds from sales of Rialto Investments real estate owned	34,451		37,868
Improvements in Rialto Investments real estate owned	(1,716)		(3,963)
Payments to Acquire Notes Receivable	(5,250)		0
Cash flows from financing activities:
Principal repayments on Rialto Investments notes payable	(304,123)		(170,026)
Common stock:
Cash and cash equivalents at beginning of period	105,310	[1]
Cash and cash equivalents at end of period	64,188	[1]	74,186
Supplemental disclosures of non-cash investing and financing activities:
Real estate owned acquired in satisfaction/partial satisfaction of loans receivable	15,321		41,588
Lennar Financial Services [Member]
Changes in assets and liabilities:
Decrease in Lennar Financial Services loans-held-for-sale	167,423		30,866
Cash flows from investing activities:
Decrease in Lennar Financial Services loans held-for-investment, net	446		447
Purchases of Lennar Financial Services investment securities	(13,357)		(1,150)
Proceeds from maturities of Lennar Financial Services investment securities	14,130		750
Cash flows from financing activities:
Net repayments under Lennar Financial Services debt	(146,061)		(150,684)
Common stock:
Cash and cash equivalents at beginning of period	58,566
Cash and cash equivalents at end of period	65,200		56,555
Debt [Member] | Lennar Homebuilding [Member]
Adjustments to reconcile net earnings (including net earnings (loss) attributable to noncontrolling interests) to net cash provided by (used in) operating activities:
Gains (Losses) on Lennar Homebuilding senior notes	(1,000)		(988)
Noncontrolling Interests [Member]
Cash flows from operating activities:
Net earnings (including net earnings (loss) attributable to noncontrolling interests)	(534)		(6,991)
Adjustments to reconcile net earnings (including net earnings (loss) attributable to noncontrolling interests) to net cash provided by (used in) operating activities:
Tax benefit from share-based awards
Cash flows from financing activities:
Receipts related to noncontrolling interests	434		391
Payments related to noncontrolling interests	$ (12,585)

[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 February 28, 2013, total assets include $1,837.4 million related to consolidated VIEs of which $15.9 million is included in Lennar Homebuilding cash and cash equivalents, $6.0 million in Lennar Homebuilding receivables, net, $65.6 million in Lennar Homebuilding finished homes and construction in progress, $485.6 million in Lennar Homebuilding land and land under development, $65.9 million in Lennar Homebuilding consolidated inventory not owned, $44.5 million in Lennar Homebuilding investments in unconsolidated entities, $223.2 million in Lennar Homebuilding other assets, $63.3 million in Rialto Investments cash and cash equivalents, $4.7 million in Rialto Investments defeasance cash to retire notes payable, $318.5 million in Rialto Investments loans receivable, net, $115.3 million in Rialto Investments real estate owned, held-for-sale, $422.8 million in Rialto Investments real estate owned, held-and-used, net $0.6 million in Rialto Investments in unconsolidated entities and $5.5 million in Rialto Investments other assets.As of November 30, 2012, total assets include $2,128.6 million related to consolidated VIEs of which $13.2 million is included in Lennar Homebuilding cash and cash equivalents, $6.0 million in Lennar Homebuilding receivables, net, $57.4 million in Lennar Homebuilding finished homes and construction in progress, $482.6 million in Lennar Homebuilding land and land under development, $65.2 million in Lennar Homebuilding consolidated inventory not owned, $43.7 million in Lennar Homebuilding investments in unconsolidated entities, $224.1 million in Lennar Homebuilding other assets, $104.8 million in Rialto Investments cash and cash equivalents, $223.8 million in Rialto Investments defeasance cash to retire notes payable, $350.2 million in Rialto Investments loans receivable, net, $94.2 million in Rialto Investments real estate owned, held-for-sale, $454.9 million in Rialto Investments real estate owned, held-and-used, net, $0.7 million in Rialto Investments in unconsolidated entities and $7.8 million in Rialto Investments other assets.

XML

Income Taxes

3 Months Ended

Feb. 28, 2013

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

A reduction of the carrying amounts of deferred tax assets by a valuation allowance is required, if based on the available evidence, it is more likely than not that such assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed each reporting period by the Company based on the more-likely-than-not realization threshold criterion. In the assessment of the need for a valuation allowance, appropriate consideration is given to all positive and negative evidence related to the realization of the deferred tax assets. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, actual earnings, forecasts of future profitability, the duration of statutory carryforward periods, the Company’s experience with loss carryforwards not expiring unused and tax planning alternatives.

During the year ended November 30, 2012, the Company concluded that it was more likely than not that the majority of its deferred tax assets would be utilized. This conclusion was based on a detailed evaluation of all relevant evidence, both positive and negative as detailed in the Company's Form 10-K for the year ended November 30, 2012. Accordingly, the Company reversed a majority of its valuation allowance against its deferred tax assets. As of November 30, 2012, the Company had a valuation allowance of $88.8 million, primarily related to state net operating loss ("NOL") carryforwards.

During the three months ended February 28, 2013, the Company concluded that it was more likely than not that a portion of its state NOL carryforwards related to which a valuation allowance had been established would be utilized. This conclusion was based on additional positive evidence including actual and forecasted profitability. Accordingly, during the three months ended February 28, 2013, the Company reversed $25.1 million of its valuation allowance against its state NOL carryforwards. This reversal was partially offset by a tax provision of $21.5 million primarily related to pre-tax earnings during the three months ended February 28, 2013. Therefore, the Company had a $3.6 million net benefit for income taxes during the three months ended February 28, 2013. During the three months ended February 29, 2012, the Company recorded a tax benefit of $1.5 million, primarily related to a refund claim for certain losses carried back to a prior year. Based on an analysis utilizing objectively verifiable evidence, it was not more likely than not that certain state NOL carryforwards would be utilized due to an inability to carry back these losses in most states and short carryforward periods that exist in certain states. As a result, as of February 28, 2013, the Company had a valuation allowance of $63.7 million against its deferred tax assets, primarily related to state NOL carryforwards. In future periods, some or all of the remaining allowance could be reversed if additional sufficient positive evidence is present indicating that it is more likely than not that a portion or all of the Company's remaining deferred tax assets will be realized.

As of February 28, 2013, the Company's deferred tax assets, net, were $475.3 million, of which $481.2 million were deferred tax assets included in Lennar Homebuilding's other assets on the Company's condensed consolidated balance sheets and $5.9 million were deferred tax liabilities included in Lennar Financial Services segment's liabilities on the Company's condensed consolidated balance sheets.

At February 28, 2013 and November 30, 2012, the Company had federal tax effected NOL carryforwards totaling $279.7 million and $278.8 million, respectively, that may be carried forward up to 20 years to offset future taxable income and begin to expire in 2025. As of February 28, 2013, the Company needs to generate $1.0 billion of pre-tax earnings in future periods to realize all of its federal NOL carryforwards and federal deductible temporary tax differences. At February 28, 2013 and November, 30, 2012, the Company had state tax effected NOL carryforwards totaling $173.5 million and $173.6 million, respectively, that may be carried forward from 5 to 20 years, depending on the tax jurisdiction, with losses expiring between 2013 and 2032. As of February 28, 2013, state NOL carryforwards totaling $7.9 million may expire over the next twelve months if sufficient taxable income is not generated to utilize the net operating losses. At February 28, 2013 and November, 30, 2012, the Company had a valuation allowance of $59.5 million and $84.6 million, respectively, against its state NOL carryforwards because the Company believes it is more likely than not that a portion of its state NOL carryforwards will not be realized due to the limited carryforward periods in certain states.

At February 28, 2013 and November 30, 2012, the Company had $8.8 million and $12.3 million of gross unrecognized tax benefits. If the Company were to recognize its gross unrecognized tax benefits as of February 28, 2013, $5.7 million would affect the Company’s effective tax rate. The Company expects the total amount of unrecognized tax benefits to decrease by $1.6 million within twelve months as a result of anticipated settlements with various taxing authorities.

During the three months ended February 28, 2013, the Company’s gross unrecognized tax benefits decreased by $3.5 million primarily as a result of state tax payments resulting from a previously settled IRS examination. The decrease in gross unrecognized tax benefits had no effect on the Company’s effective tax rate, which was (6.75%). As a result of the partial reversal of the valuation allowance against the Company's deferred tax assets, the effective tax rate is not reflective of the Company's historical tax rate.

At February 28, 2013, the Company had $18.1 million accrued for interest and penalties, of which $0.4 million was recorded during the three months ended February 28, 2013. During the three months ended February 28, 2013, the accrual for interest and penalties was reduced by $2.8 million primarily as a result of the payment of interest related to state tax payments resulting from a previously settled IRS examination. At November 30, 2012, the Company had $20.5 million accrued for interest and penalties.

The IRS is currently examining the Company’s federal income tax return for fiscal year 2011 and certain state taxing authorities are examining various fiscal years. The final outcome of these examinations is not yet determinable. The statute of limitations for the Company’s major tax jurisdictions remains open for examination for fiscal year 2005 and subsequent years. The Company participates in the Compliance Assurance Process, "CAP," an IRS examination program. This program operates as a contemporaneous exam throughout the year in order to keep exam cycles current and achieve a higher level of compliance.

XML

Rialto Investments Segment (Accretable Yield For The FDIC Portfolios And Bank Portfolios) (Details) (Rialto Investments [Member], FDIC Portfolios And Bank Portfolios [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended
	Feb. 28, 2013	Feb. 29, 2012
Rialto Investments [Member] | FDIC Portfolios And Bank Portfolios [Member]
Segment Reporting Information [Line Items]
Accretable yield, beginning of period	$ 112,899	$ 209,480
Additions	18,949	1,838
Deletions	(19,915)	(10,635)
Accretions	(13,845)	(21,403)
Accretable yield, end of period	$ 98,088	$ 179,280

XML

Financial Instruments (Carrying Amounts And Estimated Fair Value Of Financial Instruments) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Feb. 28, 2013	Nov. 30, 2012
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable, Carrying Amount	$ 4,505,662	$ 4,005,051
Rialto Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans receivable, net	406,207	436,535
Loans receivable, Fair Value	426,366	450,281
Investments held-to-maturity, Carrying Amount	15,262	15,012
Investments held-to-maturity, Fair Value	15,159	14,904
Notes payable, Carrying Amount	270,357	574,480
Notes payable, Fair Value	264,484	568,702
Interest rate	0.00%
Treasury yield calculated term (in years)	2 years
Lennar Financial Services [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments held-to-maturity, Carrying Amount	62,746	63,924
Investments held-to-maturity, Fair Value	62,796	63,877
Loans held-for-investment, net, Carrying Amount	23,593	23,982
Loans held-for-investment, net, Fair Value	25,274	24,949
Notes and other debts payable, Carrying Amount	311,933	457,994
Notes and other debts payable, Fair Value	311,933	457,994
Lennar Homebuilding [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable, Carrying Amount	4,505,662	4,005,051
Notes payable, Fair Value	$ 5,545,976	$ 5,035,670

XML

Earnings Per Share (Tables)

3 Months Ended

Feb. 28, 2013

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
	February 28,		February 29,
(In thousands, except per share amounts)	2013		2012
Numerator:
Net earnings attributable to Lennar	$	57,492	14,968
Less: distributed earnings allocated to nonvested shares	102		115
Less: undistributed earnings allocated to nonvested shares	664		113
Numerator for basic earnings per share	56,726		14,740
Plus: interest on 2.00% convertible senior notes due 2020 and     3.25% convertible senior notes due 2021	2,826		2,911
Plus: undistributed earnings allocated to convertible shares	662		113
Less: undistributed earnings reallocated to convertible shares	588		137
Numerator for diluted earnings per share	$	59,626	17,627
Denominator:
Denominator for basic earnings per share - weighted average     common shares outstanding	189,548		185,997
Effect of dilutive securities:
Shared based payments	573		883
Convertible senior notes	35,896		26,933
Denominator for diluted earnings per share - weighted average     common shares outstanding	226,017		213,813
Basic earnings per share	$	0.30	0.08
Diluted earnings per share	$	0.26	0.08

XML

Financial Instruments (Unobservable inputs) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Feb. 28, 2013 homes communities	Feb. 29, 2012 communities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]
Number of communities assessed for impairment	24
Active communities	482	424
Fair Value Inputs, Discount Rate	20.00%
Number of homesites assessed for impairment	759
Number of homesites impaired	32
Number of communities impaired	3
Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]
Average selling price	279,000
Absorption rate per quarter (homes)	12
Capitalization rate	12.00%
Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]
Average selling price	163,000
Absorption rate per quarter (homes)	2
Capitalization rate	8.00%
Lennar Homebuilding [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]
Finished Homes And Construction In Progress Carrying Value Before Impairments	44,749

XML

Operating And Reporting Segments (Disclosure Of Valuation Adjustments And Write-Offs Relating To Company's Homebuilding Operations) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Feb. 28, 2013	Feb. 29, 2012
Segment Reporting Information [Line Items]
Valuation adjustments related to finished homes	$ 1,255	$ 2,025
Valuation adjustments to land	243	0
Write-offs of option deposits	215	290
Valuation adjustments to investments of unconsolidated entities	0	11
Total valuation adjustments and write-offs of option deposits and pre-acquisition costs, other receivables and other assets	1,713	2,326
Homebuilding East [Member]
Segment Reporting Information [Line Items]
Valuation adjustments related to finished homes	49	217
Valuation adjustments to land	83	0
Write-offs of option deposits	171	7
Valuation adjustments to investments of unconsolidated entities	0	11
Homebuilding Central [Member]
Segment Reporting Information [Line Items]
Valuation adjustments related to finished homes	37	153
Valuation adjustments to land	2	0
Write-offs of option deposits	26	49
Homebuilding West [Member]
Segment Reporting Information [Line Items]
Valuation adjustments related to finished homes	98	530
Valuation adjustments to land	158	0
Write-offs of option deposits	18	232
Homebuilding Southeast Florida [Member]
Segment Reporting Information [Line Items]
Valuation adjustments related to finished homes	1,050	328
Homebuilding Houston [Member]
Segment Reporting Information [Line Items]
Valuation adjustments related to finished homes	0	61
Homebuilding Other [Member]
Segment Reporting Information [Line Items]
Valuation adjustments related to finished homes	21	736
Write-offs of option deposits	$ 0	$ 2

XML

Consolidation Of Variable Interest Entities

3 Months Ended

Feb. 28, 2013

Consolidation Of Variable Interest Entities [Abstract]

Consolidation of Variable Interest Entities

Consolidation of Variable Interest Entities

GAAP requires the consolidation of VIEs in which an enterprise has a controlling financial interest. A controlling financial interest will have both of the following characteristics: (a) the power to direct the activities of a VIE that most significantly impact the VIEs economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.

The Company’s variable interest in VIEs may be in the form of (1) equity ownership, (2) contracts to purchase assets, (3) management and development agreements between the Company and a VIE, (4) loans provided by the Company to a VIE or other partner and/or (5) guarantees provided by members to banks and other third parties. The Company examines specific criteria and uses its judgment when determining if the Company is the primary beneficiary of a VIE. Factors considered in determining whether the Company is the primary beneficiary include risk and reward sharing, experience and financial condition of other partner(s), voting rights, involvement in day-to-day capital and operating decisions, representation on a VIE’s executive committee, existence of unilateral kick-out rights or voting rights, level of economic disproportionality, if any, between the Company and the other partner(s) and contracts to purchase assets from VIEs.

Generally, all major decision making in the Company’s joint ventures is shared between all partners. In particular, business plans and budgets are generally required to be unanimously approved by all partners. Usually, management and other fees earned by the Company are nominal and believed to be at market and there is no significant economic disproportionality between the Company and other partners. Generally, the Company purchases less than a majority of the joint venture’s assets and the purchase prices under the Company’s option contracts are believed to be at market.

Generally, Lennar Homebuilding unconsolidated entities become VIEs and consolidate when the other partner(s) lack the intent and financial wherewithal to remain in the entity. As a result, the Company continues to fund operations and debt paydowns through partner loans or substituted capital contributions.

The Company evaluated the joint venture agreements of its joint ventures that were formed or that had reconsideration events during the three months ended February 28, 2013. Based on the Company's evaluation, there were no entities that consolidated during the three months ended February 28, 2013. In addition, during the three months ended February 28, 2013, there were no VIEs that were deconsolidated.

At February 28, 2013 and November 30, 2012, the Company’s recorded investments in Lennar Homebuilding unconsolidated entities were $577.3 million and $565.4 million, respectively, and the Rialto segment’s investments in unconsolidated entities as of February 28, 2013 and November 30, 2012 were $106.6 million and $108.1 million, respectively.

Consolidated VIEs

As of February 28, 2013, the carrying amounts of the VIEs’ assets and non-recourse liabilities that consolidated were $1.8 billion and $435.3 million, respectively. Those assets are owned by, and those liabilities are obligations of, the VIEs, not the Company.

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. In addition, 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 agreements with a VIE’s banks, which may include debt guarantees and LC agreements, 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

The Company’s recorded investment in VIEs that are unconsolidated and its estimated maximum exposure to loss were as follows:

As of February 28, 2013

(In thousands)	Investments in Unconsolidated VIEs		Lennar’s Maximum Exposure to Loss
Lennar Homebuilding (1)	$	90,300	117,204
Rialto Investments (2)	23,626		23,626
	$	113,926	140,830

As of November 30, 2012

(In thousands)	Investments in Unconsolidated VIEs		Lennar’s Maximum Exposure to Loss
Lennar Homebuilding (1)	$	85,500	109,278
Rialto Investments (2)	23,587		23,587
	$	109,087	132,865

(1) At February 28, 2013, the maximum exposure to loss of Lennar Homebuilding’s investments in unconsolidated VIEs is limited to its investment in the unconsolidated VIEs, except with regard to $15.0 million of recourse debt of one of the unconsolidated VIEs, which is included in the Company’s maximum recourse related to Lennar Homebuilding unconsolidated entities, and $11.6 million of letters of credit outstanding for certain of the unconsolidated VIEs that in the event of default under its debt agreement the letter of credit will be drawn upon. At November 30, 2012, the maximum exposure to loss of Lennar Homebuilding’s investments in unconsolidated VIEs is limited to its investment in the unconsolidated VIEs, except with regard to $18.7 million of recourse debt of one of the unconsolidated VIEs, which is included in the Company’s maximum recourse related to Lennar Homebuilding unconsolidated entities and $4.8 million of letters of credit outstanding for certain of the unconsolidated VIEs that in the event of default under its debt agreement the letter of credit will be drawn upon.

(2) At both February 28, 2013 and November 30, 2012, the maximum recourse exposure to loss of Rialto’s investment in unconsolidated VIEs was its investments in unconsolidated entities. At February 28, 2013 and November 30, 2012, investments in unconsolidated VIEs and Lennar’s maximum exposure to loss include $15.3 million and $15.0 million, respectively, related to Rialto’s 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. 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. Furthermore, the Company’s economic interest is not significantly disproportionate to the point where it would indicate that the Company has the power to direct these activities.

The Company and other partners do not generally have an obligation to make capital contributions to the VIEs, except for $15.0 million of recourse debt of one of the Lennar Homebuilding unconsolidated VIEs and $11.6 million of letters of credit outstanding for one of the Lennar Homebuilding unconsolidated VIEs that in the event of default under its debt agreement the letter of credit will be drawn upon. Except for the Lennar Homebuilding unconsolidated VIEs discussed above, the Company and the other partners did not guarantee any debt of the other unconsolidated VIEs. 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. 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.

A majority of the Company’s option contracts require a non-refundable cash deposit or irrevocable letter of credit based on a percentage of the purchase price of the land. The Company’s option contracts sometimes include price adjustment provisions, which adjust the purchase price of the land to its approximate fair value at the time of acquisition or are based on the fair value at the time of takedown.

The Company’s investments in option contracts are recorded at cost unless those investments are determined to be impaired, in which case the Company’s investments are written down to fair value. The Company reviews option contracts for indicators of impairment during each reporting period. The most significant indicator of impairment is a decline in the fair value of the optioned property such that the purchase and development of the optioned property would no longer meet the Company’s targeted return on investment with appropriate consideration given to the length of time available to exercise the option. Such declines could be caused by a variety of factors including increased competition, decreases in demand or changes in local regulations that adversely impact the cost of development. Changes in any of these factors would cause the Company to re-evaluate the likelihood of exercising its land options.

Some option contracts contain a predetermined take-down schedule for the optioned land parcels. However, in almost all instances, the Company is not required to purchase land in accordance with those take-down schedules. In substantially all instances, the Company has the right and ability to not exercise its option and forfeit its deposit without further penalty, other than termination of the option and loss of any unapplied portion of its deposit and pre-acquisition costs. Therefore, in substantially all instances, the Company does not consider the take-down price to be a firm contractual obligation.

When the Company does not intend to exercise an option, it writes off any unapplied deposit and pre-acquisition costs associated with the option contract.

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, it is required to consolidate the land under option at the purchase price of the optioned land. During the three months ended February 28, 2013, the effect of consolidation of these option contracts was a net increase of $6.4 million to consolidated inventory not owned with a corresponding increase to liabilities related to consolidated inventory not owned in the accompanying condensed consolidated balance sheet as of February 28, 2013. To reflect the purchase price of the inventory consolidated, the Company reclassified the related option deposits from land under development to consolidated inventory not owned in the accompanying condensed consolidated balance sheet as of February 28, 2013. 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 increase to consolidated inventory not owned was offset by the Company exercising its options to acquire land under certain contracts previously consolidated resulting in a net decrease in consolidated inventory not owned of $1.4 million for the three months ended February 28, 2013.

The Company’s exposure to loss related to its option contracts with third parties and unconsolidated entities consisted of its non-refundable option deposits and pre-acquisition costs totaling $134.6 million and $176.7 million, respectively, at February 28, 2013 and November 30, 2012. Additionally, the Company had posted $38.9 million and $42.5 million, respectively, of letters of credit in lieu of cash deposits under certain option contracts as of February 28, 2013 and November 30, 2012.