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Supplemental Financial Information
6 Months Ended
May 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Supplemental Financial Information Supplemental Financial Information
The indentures governing the Company’s senior notes 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 are not finance company subsidiaries or foreign subsidiaries and were guaranteeing the senior notes because at May 31, 2020 they were guaranteeing Lennar Corporation's letter of credit facilities and its Credit Facility, disclosed in Note 7 of the Notes to the Condensed Consolidated Financial Statements. The guarantees are full, unconditional and joint and several and the guarantor subsidiaries are 100% directly or indirectly owned by Lennar Corporation. A subsidiary's guarantee of Lennar senior notes will be suspended at any time when it is not directly or indirectly guaranteeing at least $75 million principal amount 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 by Lennar Corporation (the "Parent") 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. Distributions of capital received by the Parent from its subsidiaries are reflected as cash flows from investing activities. The cash outflows associated with the return on investment dividends and distributions of capital received by the Parent are reflected by the Guarantor and Non-Guarantor subsidiaries in the Dividends line item within cash flows from financing activities. All other cash flows between the Parent and its subsidiaries represent the settlement of receivables and payables between such entities in conjunction with the Parent's centralized cash management arrangement with its subsidiaries, which operates with the characteristics of a revolving credit facility, and are accordingly reflected net in the Intercompany line item within cash flows from investing activities for the Parent and net in the Intercompany line item within cash flows from financing activities for the Guarantor and Non-Guarantor subsidiaries.
Supplemental information for the subsidiaries that were guarantor subsidiaries at May 31, 2020 was as follows:
Condensed Consolidating Balance Sheet
May 31, 2020
(In thousands)Lennar
Corporation
Guarantor
Subsidiaries
Non-Guarantor
Subsidiaries
Consolidating AdjustmentsTotal
ASSETS
Homebuilding:
Cash and cash equivalents, restricted cash and receivables, net$1,000,333  695,182  12,230  —  1,707,745  
Inventories—  17,528,852  418,554  —  17,947,406  
Investments in unconsolidated entities—  971,058  1,986  —  973,044  
Goodwill—  3,442,359  —  —  3,442,359  
Other assets392,355  468,610  251,743  (32,522) 1,080,186  
Investments in subsidiaries10,270,732  21,757  —  (10,292,489) —  
Intercompany12,267,017  —  —  (12,267,017) —  
23,930,437  23,127,818  684,513  (22,592,028) 25,150,740  
Financial Services—  249,999  2,329,154  (1,348) 2,577,805  
Multifamily—  —  1,127,929  —  1,127,929  
Lennar Other—  187,352  281,789  (16,590) 452,551  
Total assets$23,930,437  23,565,169  4,423,385  (22,609,966) 29,309,025  
LIABILITIES AND EQUITY
Homebuilding:
Accounts payable and other liabilities$832,049  1,821,132  331,807  (50,460) 2,934,528  
Liabilities related to consolidated inventory not owned—  344,074  —  —  344,074  
Senior notes and other debts payable6,555,685  865,539  74,450  —  7,495,674  
Intercompany—  10,145,745  2,121,272  (12,267,017) —  
7,387,734  13,176,490  2,527,529  (12,317,477) 10,774,276  
Financial Services—  30,344  1,633,204  —  1,663,548  
Multifamily—  —  222,387  —  222,387  
Lennar Other—  —  16,190  —  16,190  
Total liabilities7,387,734  13,206,834  4,399,310  (12,317,477) 12,676,401  
Total stockholders’ equity16,542,703  10,358,335  (65,846) (10,292,489) 16,542,703  
Noncontrolling interests—  —  89,921  89,921  
Total equity16,542,703  10,358,335  24,075  (10,292,489) 16,632,624  
Total liabilities and equity$23,930,437  23,565,169  4,423,385  (22,609,966) 29,309,025  
Condensed Consolidating Balance Sheet
November 30, 2019
(In thousands)Lennar
Corporation
Guarantor
Subsidiaries
Non-Guarantor
Subsidiaries
Consolidating AdjustmentsTotal
ASSETS
Homebuilding:
Cash and cash equivalents, restricted cash and receivables, net
$722,172  794,588  22,894  —  1,539,654  
Inventories—  17,396,139  380,368  —  17,776,507  
Investments in unconsolidated entities—  1,006,541  2,494  —  1,009,035  
Goodwill—  3,442,359  —  —  3,442,359  
Other assets344,941  500,356  217,607  (41,220) 1,021,684  
Investments in subsidiaries10,453,165  26,773  —  (10,479,938) —  
Intercompany12,027,996  —  —  (12,027,996) —  
23,548,274  23,166,756  623,363  (22,549,154) 24,789,239  
Financial Services—  275,812  2,731,285  (1,073) 3,006,024  
Multifamily—  —  1,068,831  —  1,068,831  
Lennar Other—  158,194  339,988  (2,765) 495,417  
Total assets$23,548,274  23,600,762  4,763,467  (22,552,992) 29,359,511  
LIABILITIES AND EQUITY
Homebuilding:
Accounts payable and other liabilities$760,981  1,935,366  318,845  (45,058) 2,970,134  
Liabilities related to consolidated inventory not owned—  260,266  —  —  260,266  
Senior notes and other debts payable6,837,776  885,783  53,079  —  7,776,638  
Intercompany—  10,122,374  1,905,622  (12,027,996) —  
7,598,757  13,203,789  2,277,546  (12,073,054) 11,007,038  
Financial Services—  40,235  2,016,215  —  2,056,450  
Multifamily—  —  232,155  —  232,155  
Lennar Other—  —  30,038  —  30,038  
Total liabilities7,598,757  13,244,024  4,555,954  (12,073,054) 13,325,681  
Total stockholders’ equity15,949,517  10,356,738  123,200  (10,479,938) 15,949,517  
Noncontrolling interests—  —  84,313  —  84,313  
Total equity15,949,517  10,356,738  207,513  (10,479,938) 16,033,830  
Total liabilities and equity$23,548,274  23,600,762  4,763,467  (22,552,992) 29,359,511  
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
Three Months Ended May 31, 2020
(In thousands)Lennar
Corporation
Guarantor
Subsidiaries
Non-Guarantor
Subsidiaries
Consolidating AdjustmentsTotal
Revenues:
Homebuilding$—  4,939,857  9,627  —  4,949,484  
Financial Services—  35,534  166,712  (5,983) 196,263  
Multifamily—  —  123,117  —  123,117  
Lennar Other—  —  18,509  —  18,509  
Total revenues—  4,975,391  317,965  (5,983) 5,287,373  
Cost and expenses:
Homebuilding—  4,302,960  13,304  (2,933) 4,313,331  
Financial Services—  21,146  93,176  (3,967) 110,355  
Multifamily—  —  123,473  —  123,473  
Lennar Other—  —  (1,072) —  (1,072) 
Corporate general and administrative80,544  1,641  —  1,266  83,451  
Total costs and expenses80,544  4,325,747  228,881  (5,634) 4,629,538  
Homebuilding equity in earnings (loss) from unconsolidated entities
—  (9,222) 122  —  (9,100) 
Homebuilding other income (expense), net(349) 2,809  1,499  349  4,308  
Financial Services gain on deconsolidation—  61,418  —  —  61,418  
Multifamily equity in loss from unconsolidated entities
—  —  (282) —  (282) 
Lennar Other equity in loss from unconsolidated entities
—  (3,922) (22,720) —  (26,642) 
Lennar Other income (expense), net—   (10,966) —  (10,960) 
Earnings (loss) before income taxes(80,893) 700,733  56,737  —  676,577  
Benefit (provision) for income taxes22,411  (165,874) (17,016) —  (160,479) 
Equity in earnings from subsidiaries575,888  56,130  —  (632,018) —  
Net earnings (including net loss attributable to noncontrolling interests)
517,406  590,989  39,721  (632,018) 516,098  
Less: Net loss attributable to noncontrolling interests
—  —  (1,308) —  (1,308) 
Net earnings attributable to Lennar$517,406  590,989  41,029  (632,018) 517,406  
Other comprehensive loss, net of tax:
Net unrealized loss on securities available-for-sale
$—  —  (338) —  (338) 
Reclassification adjustments for gains included in earnings, net of tax
—  —  (452) —  (452) 
Total other comprehensive loss, net of tax$—  —  (790) —  (790) 
Total comprehensive income attributable to Lennar$517,406  590,989  40,239  (632,018) 516,616  
Total comprehensive loss attributable to noncontrolling interests
$—  —  (1,308) —  (1,308) 
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
Three Months Ended May 31, 2019
(In thousands)Lennar
Corporation
Guarantor
Subsidiaries
Non-Guarantor
Subsidiaries
Consolidating AdjustmentsTotal
Revenues:
Homebuilding$—  5,175,289  20,310  —  5,195,599  
Financial Services—  36,353  172,729  (4,866) 204,216  
Multifamily—  —  147,412  —  147,412  
Lennar Other—  —  15,663  —  15,663  
Total revenues—  5,211,642  356,114  (4,866) 5,562,890  
Cost and expenses:
Homebuilding—  4,561,235  19,594  6,430  4,587,259  
Financial Services—  20,829  139,510  (12,340) 147,999  
Multifamily—  —  148,716  —  148,716  
Lennar Other—  —  3,194  —  3,194  
Corporate general and administrative74,321  527  —  1,265  76,113  
Total costs and expenses74,321  4,582,591  311,014  (4,645) 4,963,281  
Homebuilding equity in earnings from unconsolidated entities—  19,537  77  —  19,614  
Homebuilding other income (expense), net(222) (48,550) 2,386  221  (46,165) 
Multifamily equity in loss from unconsolidated entities and other gain—  —  (3,018) —  (3,018) 
Lennar Other equity in loss from unconsolidated entities—  (4,239) (739) —  (4,978) 
Lennar Other expense, net—  —  (5,663) —  (5,663) 
Earnings (loss) before income taxes(74,543) 595,799  38,143  —  559,399  
Benefit (provision) for income taxes18,653  (148,736) (10,447) —  (140,530) 
Equity in earnings from subsidiaries477,362  28,703  —  (506,065) —  
Net earnings (including net loss attributable to noncontrolling interests)
421,472  475,766  27,696  (506,065) 418,869  
Less: Net loss attributable to noncontrolling interests—  —  (2,603) —  (2,603) 
Net earnings attributable to Lennar$421,472  475,766  30,299  (506,065) 421,472  
Other comprehensive income, net of tax:
Net unrealized gain on securities available-for-sale$—  —  561  —  561  
Reclassification adjustments for gains included in net earnings, net of tax—  —  (176) —  (176) 
Total other comprehensive income, net of tax
$—  —  385  —  385  
Total comprehensive income attributable to Lennar$421,472  475,766  30,684  (506,065) 421,857  
Total comprehensive loss attributable to noncontrolling interests$—  —  (2,603) —  (2,603) 
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
Six Months Ended May 31, 2020
(In thousands)Lennar
Corporation
Guarantor
Subsidiaries
Non-Guarantor
Subsidiaries
Consolidating AdjustmentsTotal
Revenues:
Homebuilding$—  9,096,000  25,600  —  9,121,600  
Financial Services—  64,528  342,365  (11,969) 394,924  
Multifamily—  —  255,734  —  255,734  
Lennar Other—  —  20,452  —  20,452  
Total revenues—  9,160,528  644,151  (11,969) 9,792,710  
Cost and expenses:
Homebuilding—  7,987,657  30,647  (7,167) 8,011,137  
Financial Services—  37,599  230,727  (6,627) 261,699  
Multifamily—  —  260,821  —  260,821  
Lennar Other—  —  1,502  —  1,502  
Corporate general and administrative164,554  3,213  —  2,531  170,298  
Total costs and expenses164,554  8,028,469  523,697  (11,263) 8,705,457  
Homebuilding equity in earnings (loss) from unconsolidated entities
—  (13,956) 310  —  (13,646) 
 Homebuilding other income (expense), net(706) (8,239) 3,181  706  (5,058) 
Financial Services gain on deconsolidation—  61,418  —  —  61,418  
Multifamily equity in earnings from unconsolidated entities and other gain
—  —  6,234  —  6,234  
Lennar Other equity in loss from unconsolidated entities
—  (8,852) (17,671) —  (26,523) 
Lennar Other income (expense), net—   (9,555) —  (9,549) 
Earnings (loss) before income taxes(165,260) 1,162,436  102,953  —  1,100,129  
Benefit (provision) for income taxes28,739  (191,711) (29,836) —  (192,808) 
Equity in earnings from subsidiaries1,052,379  80,835  —  (1,133,214) —  
Net earnings (including net loss attributable to noncontrolling interests)
915,858  1,051,560  73,117  (1,133,214) 907,321  
Less: Net loss attributable to noncontrolling interests
—  —  (8,537) —  (8,537) 
Net earnings attributable to Lennar$915,858  1,051,560  81,654  (1,133,214) 915,858  
Other comprehensive loss, net of tax:
Net unrealized loss on securities available-for-sale$—  —  (384) —  (384) 
Reclassification adjustments for gain included in earnings, net of tax
—  —  (452) —  (452) 
Total other comprehensive loss, net of tax$—  —  (836) —  (836) 
Total comprehensive income attributable to Lennar$915,858  1,051,560  80,818  (1,133,214) 915,022  
Total comprehensive loss attributable to noncontrolling interests
$—  —  (8,537) —  (8,537) 
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
Six Months Ended May 31, 2019
(In thousands)Lennar
Corporation
Guarantor
Subsidiaries
Non-Guarantor
Subsidiaries
Consolidating AdjustmentsTotal
Revenues:
Homebuilding$—  8,789,330  29,990  —  8,819,320  
Financial Services—  85,270  271,978  (9,721) 347,527  
Multifamily—  —  244,806  —  244,806  
Lennar Other—  —  19,319  —  19,319  
Total revenues—  8,874,600  566,093  (9,721) 9,430,972  
Cost and expenses:
Homebuilding—  7,787,164  31,901  7,029  7,826,094  
Financial Services—  59,207  231,778  (18,647) 272,338  
Multifamily—  —  249,894  —  249,894  
Lennar Other—  —  4,816  —  4,816  
Corporate general and administrative151,850  1,076  —  2,530  155,456  
Total costs and expenses151,850  7,847,447  518,389  (9,088) 8,508,598  
Homebuilding equity in earnings from unconsolidated entities
—  5,586  272  —  5,858  
Homebuilding other income (expense), net(630) (50,946) 3,243  633  (47,700) 
Multifamily equity in earnings from unconsolidated entities
—  —  7,563  —  7,563  
Lennar Other equity in earnings (loss) from unconsolidated entities
—  (7,585) 10,937  —  3,352  
Lennar Other expense, net—  —  (12,924) —  (12,924) 
Earnings (loss) before income taxes(152,480) 974,208  56,795  —  878,523  
Benefit (provision) for income taxes38,090  (242,575) (15,745) —  (220,230) 
Equity in earnings from subsidiaries775,772  33,476  —  (809,248) —  
Net earnings (including net earnings attributable to noncontrolling interests)
661,382  765,109  41,050  (809,248) 658,293  
Less: Net loss attributable to noncontrolling interests—  —  (3,089) —  (3,089) 
Net earnings attributable to Lennar$661,382  765,109  44,139  (809,248) 661,382  
Other comprehensive loss, net of tax:
Net unrealized gain on securities available-for-sale
$—  —  769  —  769  
Reclassification adjustments for gains included in earnings, net of tax
—  —  (176) —  (176) 
Total other comprehensive income, net of tax$—  —  593  —  593  
Total comprehensive income attributable to Lennar$661,382  765,109  44,732  (809,248) 661,975  
Total comprehensive loss attributable to noncontrolling interests
$—  —  (3,089) —  (3,089) 
Condensed Consolidating Statement of Cash Flows
Six Months Ended May 31, 2020
(In thousands)Lennar
Corporation
Guarantor
Subsidiaries
Non-Guarantor
Subsidiaries
Consolidating AdjustmentsTotal
Cash flows from operating activities:
Net earnings (including net loss attributable to noncontrolling interests)
$915,858  1,051,560  73,117  (1,133,214) 907,321  
Distributions of earnings from guarantor and non-guarantor subsidiaries
1,052,379  80,835  —  (1,133,214) —  
Other adjustments to reconcile net earnings (including net loss attributable to noncontrolling interests) to net cash provided by operating activities
(980,620) (149,064) 399,952  1,133,214  403,482  
Net cash provided by operating activities987,617  983,331  473,069  (1,133,214) 1,310,803  
Cash flows from investing activities:
Investments in and contributions to unconsolidated entities/deconsolidation of a previously consolidated entity, net of distributions of capital
—  (17,986) (169,705) —  (187,691) 
Proceeds from the sales of operating properties and equipment and other assets
—  29,727  —  —  29,727  
Other(1,767) 28,454  (42,765) —  (16,078) 
Intercompany(58,949) —  —  58,949  —  
Net cash provided by (used in) investing activities(60,716) 40,195  (212,470) 58,949  (174,042) 
Cash flows from financing activities:
Net borrowings (repayments) under warehouse facilities
—  404  (310,620) —  (310,216) 
Net borrowings (repayments) on senior notes, other borrowings, other liabilities, and other notes payable
(267,708) (123,505) 127,097  —  (264,116) 
Common stock:
Repurchases(296,093) —  —  —  (296,093) 
Dividends(78,145) (1,051,560) (81,654) 1,133,214  (78,145) 
Intercompany—  39,591  19,358  (58,949) —  
Net cash used in financing activities(641,946) (1,135,070) (245,819) 1,074,265  (948,570) 
Net increase (decrease) in cash and cash equivalents and restricted cash
284,955  (111,544) 14,780  —  188,191  
Cash and cash equivalents and restricted cash at beginning of period
713,828  532,304  222,559  —  1,468,691  
Cash and cash equivalents and restricted cash at end of period
$998,783  420,760  237,339  —  1,656,882  
Condensed Consolidating Statement of Cash Flows
Six Months Ended May 31, 2019
(In thousands)Lennar
Corporation
Guarantor
Subsidiaries
Non-Guarantor
Subsidiaries
Consolidating AdjustmentsTotal
Cash flows from operating activities:
Net earnings (including net loss attributable to noncontrolling interests)
$661,382  765,109  41,050  (809,248) 658,293  
Distributions of earnings from guarantor and non-guarantor subsidiaries
775,772  33,476  —  (809,248) —  
Other adjustments to reconcile net earnings (including net loss attributable to noncontrolling interests) to net cash provided by (used in) operating activities
(819,869) (1,222,713) 145,151  809,248  (1,088,183) 
Net cash provided by (used in) operating activities617,285  (424,128) 186,201  (809,248) (429,890) 
Cash flows from investing activities:
Investments in and contributions to unconsolidated entities, net of distributions of capital
—  (99,052) 11,716  —  (87,336) 
Proceeds from sales of real estate owned
—  —  4,210  —  4,210  
Proceeds from sale of investment in unconsolidated entity
—  —  17,790  —  17,790  
Proceeds from sales of Financial Services' businesses
—  21,317  3,129  —  24,446  
Other(170) (30,185) (20,341) —  (50,696) 
Intercompany(1,263,527) —  —  1,263,527  —  
Net cash provided by (used in) investing activities(1,263,697) (107,920) 16,504  1,263,527  (91,586) 
Cash flows from financing activities:
Net borrowings under unsecured revolving credit facilities
550,000  —  —  —  550,000  
Net borrowings (repayments) under warehouse facilities
—  170  (365,354) —  (365,184) 
Net borrowings (repayments) on convertible senior notes, other borrowings, other liabilities, and other notes payable
—  (101,052) 3,657  —  (97,395) 
Net repayments related to noncontrolling interests—  —  (14,380) —  (14,380) 
Common stock:
Issuances634  —  —  —  634  
Repurchases(101,229) —  —  —  (101,229) 
Dividends(25,877) (765,109) (44,139) 809,248  (25,877) 
Intercompany—  1,057,135  206,392  (1,263,527) —  
Net cash provided by (used in) financing activities423,528  191,144  (213,824) (454,279) (53,431) 
Net decrease in cash and cash equivalents and restricted cash
(222,884) (340,904) (11,119) —  (574,907) 
Cash and cash equivalents and restricted cash at beginning of period
624,694  721,603  249,681  —  1,595,978  
Cash and cash equivalents and restricted cash at end of period
$401,810  380,699  238,562  —  1,021,071