Equity Method Investments |
The total debt of the Lennar Homebuilding unconsolidated entities in which the Company has investments, including Lennar's maximum recourse exposure, were as follows: | | | | | | | | (Dollars in thousands) | August 31, 2016 | | November 30, 2015 | Non-recourse bank debt and other debt (partner’s share of several recourse) | $ | 48,792 |
| | 50,411 |
| Non-recourse land seller debt and other debt | 323,995 |
| | 324,000 |
| Non-recourse debt with completion guarantees | 137,152 |
| | 146,760 |
| Non-recourse debt without completion guarantees | 306,929 |
| | 260,734 |
| Non-recourse debt to the Company | 816,868 |
| | 781,905 |
| The Company’s maximum recourse exposure (1) | 48,628 |
| | 10,981 |
| Total debt | $ | 865,496 |
| | 792,886 |
| The Company’s maximum recourse exposure as a % of total JV debt | 6 | % | | 1 | % |
(1) The increase in the Company's maximum recourse exposure was primarily related to the Company providing a repayment guarantee on an unconsolidated entity's debt.Balance Sheets | | | | | | | | (In thousands) | August 31, 2016 | | November 30, 2015 | Assets: | | | | Cash and cash equivalents | $ | 369,203 |
| | 248,980 |
| Inventories | 3,798,070 |
| | 3,059,054 |
| Other assets | 1,354,826 |
| | 465,404 |
| | $ | 5,522,099 |
| | 3,773,438 |
| Liabilities and equity: | | | | Accounts payable and other liabilities | $ | 854,568 |
| | 288,192 |
| Debt | 865,496 |
| | 792,886 |
| Equity | 3,802,035 |
| | 2,692,360 |
| | $ | 5,522,099 |
| | 3,773,438 |
|
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 | | Nine Months Ended | | August 31, | | August 31, | (In thousands) | 2016 | | 2015 | | 2016 | | 2015 | Revenues | $ | 43,889 |
| | 141,599 |
| | 352,251 |
| | 765,346 |
| Costs and expenses | 110,649 |
| | 127,678 |
| | 409,219 |
| | 580,696 |
| Other income | — |
| | 46,400 |
| | — |
| | 49,343 |
| Net earnings (loss) of unconsolidated entities | $ | (66,760 | ) | | 60,321 |
| | (56,968 | ) | | 233,993 |
| Lennar Homebuilding equity in earnings (loss) from unconsolidated entities | $ | (18,034 | ) | | 13,300 |
| | (24,667 | ) | | 48,693 |
|
ance Sheets | | | | | | | | (In thousands) | August 31, 2016 | | November 30, 2015 | Assets: | | | | Cash and cash equivalents | $ | 159,683 |
| | 188,147 |
| Loans receivable | 396,543 |
| | 473,997 |
| Real estate owned | 566,012 |
| | 506,609 |
| Investment securities | 1,284,583 |
| | 1,092,476 |
| Investments in partnerships | 413,836 |
| | 429,979 |
| Other assets | 41,282 |
| | 30,340 |
| | $ | 2,861,939 |
| | 2,721,548 |
| Liabilities and equity: | | | | Accounts payable and other liabilities | $ | 27,605 |
| | 29,462 |
| Notes payable | 562,935 |
| | 374,498 |
| Equity | 2,271,399 |
| | 2,317,588 |
| | $ | 2,861,939 |
| | 2,721,548 |
|
Statements of Operations | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | August 31, | | August 31, | (In thousands) | 2016 | | 2015 | | 2016 | | 2015 | Revenues | $ | 51,485 |
| | 41,278 |
| | 147,021 |
| | 122,336 |
| Costs and expenses | 24,472 |
| | 24,937 |
| | 66,075 |
| | 73,024 |
| Other income, net (1) | 28,947 |
| | 60,106 |
| | 40,495 |
| | 121,457 |
| Net earnings of unconsolidated entities | $ | 55,960 |
| | 76,447 |
| | 121,441 |
| | 170,769 |
| Rialto equity in earnings from unconsolidated entities | $ | 5,976 |
| | 7,590 |
| | 14,337 |
| | 17,582 |
|
(1) Other income, net, included realized and unrealized gains (losses) on investments.employment.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: BalThe following table reflects Rialto's investments in funds that invest in and manage real estate related assets and other investments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | August 31, 2016 | | August 31, 2016 | | November 30, 2015 | (Dollars in thousands) | Inception Year | | Equity Commitments | | Equity Commitments Called | | Commitment to Fund by the Company | | Funds Contributed by the Company | | Investment | Rialto Real Estate Fund, LP | 2010 | | $ | 700,006 |
| | $ | 700,006 |
| | $ | 75,000 |
| | $ | 75,000 |
| | $ | 62,659 |
| | 68,570 |
| Rialto Real Estate Fund II, LP | 2012 | | 1,305,000 |
| | 1,305,000 |
| | 100,000 |
| | 100,000 |
| | 96,863 |
| | 99,947 |
| Rialto Mezzanine Partners Fund, LP | 2013 | | 300,000 |
| | 300,000 |
| | 33,799 |
| | 33,799 |
| | 26,310 |
| | 32,344 |
| Rialto Capital CMBS Funds | 2014 | | 111,753 |
| | 111,753 |
| | 47,057 |
| | 47,057 |
| | 47,270 |
| | 23,233 |
| Rialto Real Estate Fund III | 2015 | | 949,578 |
| | — |
| | 100,000 |
| | — |
| | 1,559 |
| | — |
| Rialto Credit Partnership, LP | 2016 | | 220,000 |
| | 51,150 |
| | 19,999 |
| | 4,650 |
| | 4,637 |
| | — |
| Other investments | | | | | | | | | | | 2,382 |
| | 775 |
| | | | | | | | | | | | $ | 241,680 |
| | 224,869 |
|
Rialto's share of earnings (loss) from unconsolidated entities was as follows: | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | August 31, | | August 31, | (In thousands) | 2016 | | 2015 | | 2016 | | 2015 | Rialto Real Estate Fund, LP | $ | 1,127 |
| | 4,158 |
| | 3,397 |
| | 7,948 |
| Rialto Real Estate Fund II, LP | 2,672 |
| | 2,354 |
| | 4,420 |
| | 5,533 |
| Rialto Mezzanine Partners Fund, LP | 703 |
| | 637 |
| | 2,128 |
| | 1,563 |
| Rialto Capital CMBS Funds | 1,471 |
| | 429 |
| | 3,051 |
| | 2,506 |
| Rialto Real Estate Fund III | 4 |
| | — |
| | 1,387 |
| | — |
| Rialto Credit Partnership, LP | (1 | ) | | — |
| | (13 | ) | | — |
| Other investments | — |
| | 12 |
| | (33 | ) | | 32 |
| Rialto equity in earnings from unconsolidated entities | $ | 5,976 |
| | 7,590 |
| | 14,337 |
| | 17,582 |
|
Summarized condensed financial information on a combined 100% basis related to Lennar Multifamily's investments in unconsolidated entities that are accounted for by the equity method was as follows:Balance Sheets | | | | | | | | (In thousands) | August 31, 2016 | | November 30, 2015 | Assets: | | | | Cash and cash equivalents | $ | 106,007 |
| | 39,579 |
| Operating properties and equipment | 2,007,129 |
| | 1,398,244 |
| Other assets | 49,728 |
| | 25,925 |
| | $ | 2,162,864 |
| | 1,463,748 |
| Liabilities and equity: | | | | Accounts payable and other liabilities | $ | 187,715 |
| | 179,551 |
| Notes payable | 628,237 |
| | 466,724 |
| Equity | 1,346,912 |
| | 817,473 |
| | $ | 2,162,864 |
| | 1,463,748 |
|
Statements of Operations | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | August 31, | | August 31, | (In thousands) | 2016 | | 2015 | | 2016 | | 2015 | Revenues | $ | 13,796 |
| | 4,067 |
| | 31,759 |
| | 9,236 |
| Costs and expenses | 24,611 |
| | 7,174 |
| | 50,341 |
| | 15,249 |
| Other income, net | 20,335 |
| | 13,330 |
| | 90,729 |
| | 13,330 |
| Net earnings of unconsolidated entities | $ | 9,520 |
| | 10,223 |
| | 72,147 |
| | 7,317 |
| Lennar Multifamily equity in earnings from unconsolidated entities (1) | $ | 5,060 |
| | 5,004 |
| | 38,754 |
| | 4,404 |
|
(1) For the three and nine months ended August 31, 2016, Lennar Multifamily equity in earnings from unconsolidated entities included the segment's $8.0 million and $43.8 million, respectively, share of gains as a result of the sale of one and three operating properties, respectively, by its unconsolidated entities. For both the three and nine months ended August 31, 2015, Lennar Multifamily equity in earnings from unconsolidated entities included the segment's $5.7 million share of a gain as a result of the sale of an operating property by one of its unconsolidated entities.The Company’s recorded investments in unconsolidated entities were as follows: | | | | | | | | (In thousands) | August 31, 2016 | | November 30, 2015 | Lennar Homebuilding | $ | 796,499 |
| | 741,551 |
| Rialto | $ | 241,680 |
| | 224,869 |
| Lennar Multifamily | $ | 304,032 |
| | 250,876 |
|
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