Estimated Maximum Exposure To Loss |
The Company’s recorded investment in unconsolidated VIEs and its estimated maximum exposure to loss were as follows: As of August 31, 2014 | | | | | | | | (In thousands) | Investments in Unconsolidated VIEs | | Lennar’s Maximum Exposure to Loss | Lennar Homebuilding (1) | $ | 169,584 |
| | 239,855 |
| Rialto Investments (2) | 16,968 |
| | 16,968 |
| Lennar Multifamily (3) | 41,670 |
| | 66,041 |
| | $ | 228,222 |
| | 322,864 |
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As of November 30, 2013 | | | | | | | | (In thousands) | Investments in Unconsolidated VIEs | | Lennar’s Maximum Exposure to Loss | Lennar Homebuilding (1) | $ | 195,720 |
| | 301,315 |
| Rialto Investments (2) | 24,393 |
| | 24,393 |
| Lennar Multifamily (3) | 25,874 |
| | 55,002 |
| | $ | 245,987 |
| | 380,710 |
|
| | (1) | At August 31, 2014, the maximum exposure to loss of Lennar Homebuilding’s investments in unconsolidated VIEs is limited to its investments in the unconsolidated VIEs, except with regard to a $70.0 million remaining commitment to fund an unconsolidated entity for further expenses up until the unconsolidated entity obtains permanent financing. At November 30, 2013, the maximum exposure to loss of Lennar Homebuilding’s investments in unconsolidated VIEs was limited to its investments in the unconsolidated VIEs, except with regard to $90.5 million remaining commitment to fund an unconsolidated entity that was formed in 2013 for further expenses up until the unconsolidated entity obtains permanent financing and $15.0 million of recourse debt of one of the unconsolidated VIEs, which is included in the Company’s maximum exposure to loss related to Lennar Homebuilding unconsolidated entities. |
| | (2) | At both August 31, 2014 and November 30, 2013, the maximum recourse exposure to loss of Rialto’s investments in unconsolidated VIEs is limited to its investments in the unconsolidated VIEs. At August 31, 2014 and November 30, 2013, investments in unconsolidated VIEs and Lennar’s maximum exposure to loss include $17.0 million and $16.1 million, respectively, related to Rialto’s investments held-to-maturity. |
| | (3) | At August 31, 2014 and November 30, 2013, the maximum exposure to loss of Lennar Multifamily's investments in unconsolidated VIEs is limited to its investments in the unconsolidated VIEs, except with regard to $23.4 million and $28.0 million, respectively, of letters of credit outstanding for certain of the unconsolidated VIEs that could be drawn upon in the event of default under their debt agreements. |
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