Exhibit 99.2
Supplemental Financial Information
Credit Facilities, 5.95% senior notes due 2013, 7 5/8% senior notes due 2009 and 9.95% senior notes due 2010
The Company’s obligations to pay principal, premium, if any, and interest under the Company’s Credit Facilities, 5.95% senior notes due 2013, 7 5/8% senior notes due 2009 and 9.95% senior notes due 2010 are guaranteed on a joint and several basis by substantially all of the Company’s subsidiaries, other than finance company subsidiaries and foreign subsidiaries. The guarantees are full and unconditional and the guarantor subsidiaries are 100% directly or indirectly owned by Lennar Corporation. The Company has determined that separate, full financial statements of the guarantors of the Credit Facilities and senior notes described above would not be material to investors and, accordingly, supplemental financial information for the guarantors is presented as follows:
Consolidating Condensed Balance Sheet
May 31, 2004
(Unaudited)
| (In thousands) |
Lennar Corporation |
Guarantor Subsidiaries |
Non-Guarantor Subsidiaries |
Eliminations |
Total | |||||||||
| ASSETS |
||||||||||||||
| Homebuilding: |
||||||||||||||
| Cash and receivables, net |
$ | 1,644 | 263,381 | — | — | 265,025 | ||||||||
| Inventories |
— | 4,768,660 | 6,683 | — | 4,775,343 | |||||||||
| Investments in unconsolidated entities |
— | 696,020 | — | — | 696,020 | |||||||||
| Other assets |
86,205 | 357,939 | 46 | — | 444,190 | |||||||||
| Investments in subsidiaries |
4,041,250 | 423,368 | — | (4,464,618 | ) | — | ||||||||
| 4,129,099 | 6,509,368 | 6,729 | (4,464,618 | ) | 6,180,578 | |||||||||
| Financial services |
— | 21,071 | 805,583 | (11,149 | ) | 815,505 | ||||||||
| Total assets |
$ | 4,129,099 | 6,530,439 | 812,312 | (4,475,767 | ) | 6,996,083 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||||||||
| Homebuilding: |
||||||||||||||
| Accounts payable and other liabilities |
$ | 745,164 | 326,200 | — | (43 | ) | 1,071,321 | |||||||
| Liabilities related to consolidated inventory not owned |
— | 201,888 | — | — | 201,888 | |||||||||
| Senior notes and other debts payable, net |
1,489,449 | 115,731 | — | (11,106 | ) | 1,594,074 | ||||||||
| Intercompany |
(1,585,490 | ) | 1,838,703 | (253,213 | ) | — | — | |||||||
| 649,123 | 2,482,522 | (253,213 | ) | (11,149 | ) | 2,867,283 | ||||||||
| Financial services |
— | 6,667 | 642,157 | — | 648,824 | |||||||||
| Total liabilities |
649,123 | 2,489,189 | 388,944 | (11,149 | ) | 3,516,107 | ||||||||
| Stockholders’ equity |
3,479,976 | 4,041,250 | 423,368 | (4,464,618 | ) | 3,479,976 | ||||||||
| Total liabilities and stockholders’ equity |
$ | 4,129,099 | 6,530,439 | 812,312 | (4,475,767 | ) | 6,996,083 | |||||||
Supplemental Financial Information, Continued
Consolidating Condensed Balance Sheet
November 30, 2003
| (In thousands) |
Lennar Corporation |
Guarantor Subsidiaries |
Non-Guarantor Subsidiaries |
Eliminations |
Total | |||||||||
| ASSETS |
||||||||||||||
| Homebuilding: |
||||||||||||||
| Cash and receivables, net |
$ | 895,715 | 365,953 | — | — | 1,261,668 | ||||||||
| Inventories |
— | 3,649,493 | 6,608 | — | 3,656,101 | |||||||||
| Investments in unconsolidated entities |
16,346 | 373,988 | — | — | 390,334 | |||||||||
| Other assets |
99,614 | 351,005 | — | — | 450,619 | |||||||||
| Investments in subsidiaries |
3,541,747 | 390,722 | — | (3,932,469 | ) | — | ||||||||
| 4,553,422 | 5,131,161 | 6,608 | (3,932,469 | ) | 5,758,722 | |||||||||
| Financial services |
— | 16,285 | 1,000,425 | — | 1,016,710 | |||||||||
| Total assets |
$ | 4,553,422 | 5,147,446 | 1,007,033 | (3,932,469 | ) | 6,775,432 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||||||||
| Homebuilding: |
||||||||||||||
| Accounts payable and other liabilities |
$ | 325,695 | 715,041 | 225 | — | 1,040,961 | ||||||||
| Liabilities related to consolidated inventory not owned |
— | 45,214 | — | — | 45,214 | |||||||||
| Senior notes and other debts payable, net |
1,476,860 | 75,357 | — | — | 1,552,217 | |||||||||
| Intercompany |
(512,907 | ) | 762,867 | (249,960 | ) | — | — | |||||||
| 1,289,648 | 1,598,479 | (249,735 | ) | — | 2,638,392 | |||||||||
| Financial services |
— | 7,220 | 866,046 | — | 873,266 | |||||||||
| Total liabilities |
1,289,648 | 1,605,699 | 616,311 | — | 3,511,658 | |||||||||
| Stockholders’ equity |
3,263,774 | 3,541,747 | 390,722 | (3,932,469 | ) | 3,263,774 | ||||||||
| Total liabilities and stockholders’ equity |
$ | 4,553,422 | 5,147,446 | 1,007,033 | (3,932,469 | ) | 6,775,432 | |||||||
2
Supplemental Financial Information, Continued
Consolidating Condensed Statement of Earnings
Three Months Ended May 31, 2004
(Unaudited)
| (In thousands) |
Lennar Corporation |
Guarantor Subsidiaries |
Non-Guarantor Subsidiaries |
Eliminations |
Total | ||||||||
| Revenues: |
|||||||||||||
| Homebuilding |
$ | — | 2,210,723 | — | — | 2,210,723 | |||||||
| Financial services |
— | 8,448 | 129,032 | (5,318 | ) | 132,162 | |||||||
| Total revenues |
— | 2,219,171 | 129,032 | (5,318 | ) | 2,342,885 | |||||||
| Costs and expenses: |
|||||||||||||
| Homebuilding |
— | 1,921,367 | 163 | (657 | ) | 1,920,873 | |||||||
| Financial services |
— | 2,612 | 101,917 | (4,661 | ) | 99,868 | |||||||
| Corporate general and administrative |
31,251 | — | — | — | 31,251 | ||||||||
| Total costs and expenses |
31,251 | 1,923,979 | 102,080 | (5,318 | ) | 2,051,992 | |||||||
| Equity in earnings from unconsolidated entities |
— | 13,958 | — | — | 13,958 | ||||||||
| Management fees and other income, net |
— | 18,701 | — | — | 18,701 | ||||||||
| Earnings (loss) before provision (benefit) for income taxes |
(31,251 | ) | 327,851 | 26,952 | — | 323,552 | |||||||
| Provision (benefit) for income taxes |
(11,900 | ) | 123,764 | 10,277 | — | 122,141 | |||||||
| Equity in earnings (losses) from subsidiaries |
220,762 | 16,675 | — | (237,437 | ) | — | |||||||
| Net earnings (loss) |
$ | 201,411 | 220,762 | 16,675 | (237,437 | ) | 201,411 | ||||||
Consolidating Condensed Statement of Earnings
Three Months Ended May 31, 2003
(Unaudited)
| (In thousands) |
Lennar Corporation |
Guarantor Subsidiaries |
Non-Guarantor Subsidiaries |
Eliminations |
Total | ||||||||
| Revenues: |
|||||||||||||
| Homebuilding |
$ | — | 1,967,013 | — | — | 1,967,013 | |||||||
| Financial services |
— | 5,588 | 135,682 | (5,175 | ) | 136,095 | |||||||
| Total revenues |
— | 1,972,601 | 135,682 | (5,175 | ) | 2,103,108 | |||||||
| Costs and expenses: |
|||||||||||||
| Homebuilding |
— | 1,738,562 | 159 | (1,180 | ) | 1,737,541 | |||||||
| Financial services |
— | 5,645 | 97,267 | (3,995 | ) | 98,917 | |||||||
| Corporate general and administrative |
25,727 | — | — | — | 25,727 | ||||||||
| Total costs and expenses |
25,727 | 1,744,207 | 97,426 | (5,175 | ) | 1,862,185 | |||||||
| Equity in earnings from unconsolidated entities |
— | 11,316 | — | — | 11,316 | ||||||||
| Management fees and other income, net |
— | 5,295 | — | — | 5,295 | ||||||||
| Earnings (loss) before provision (benefit) for income taxes |
(25,727 | ) | 245,005 | 38,256 | — | 257,534 | |||||||
| Provision (benefit) for income taxes |
(9,802 | ) | 92,490 | 14,531 | — | 97,219 | |||||||
| Equity in earnings (losses) from subsidiaries |
176,240 | 23,725 | — | (199,965 | ) | — | |||||||
| Net earnings (loss) |
$ | 160,315 | 176,240 | 23,725 | (199,965 | ) | 160,315 | ||||||
3
Supplemental Financial Information, Continued
Consolidating Condensed Statement of Earnings
Six Months Ended May 31, 2004
(Unaudited)
| (In thousands) |
Lennar Corporation |
Guarantor Subsidiaries |
Non-Guarantor Subsidiaries |
Eliminations |
Total | ||||||||
| Revenues: |
|||||||||||||
| Homebuilding |
$ | — | 3,968,105 | — | — | 3,968,105 | |||||||
| Financial services |
— | 10,650 | 236,146 | (9,109 | ) | 237,687 | |||||||
| Total revenues |
— | 3,978,755 | 236,146 | (9,109 | ) | 4,205,792 | |||||||
| Costs and expenses: |
|||||||||||||
| Homebuilding |
— | 3,472,935 | 422 | (1,170 | ) | 3,472,187 | |||||||
| Financial services |
— | 5,311 | 185,026 | (7,939 | ) | 182,398 | |||||||
| Corporate general and administrative |
59,929 | — | — | — | 59,929 | ||||||||
| Total costs and expenses |
59,929 | 3,478,246 | 185,448 | (9,109 | ) | 3,714,514 | |||||||
| Equity in earnings from unconsolidated entities |
— | 19,235 | — | — | 19,235 | ||||||||
| Management fees and other income, net |
— | 36,737 | — | — | 36,737 | ||||||||
| Earnings (loss) before provision (benefit) for income taxes |
(59,929 | ) | 556,481 | 50,698 | — | 547,250 | |||||||
| Provision (benefit) for income taxes |
(22,719 | ) | 210,072 | 19,234 | — | 206,587 | |||||||
| Equity in earnings (losses) from subsidiaries |
377,873 | 31,464 | — | (409,337 | ) | — | |||||||
| Net earnings (loss) |
$ | 340,663 | 377,873 | 31,464 | (409,337 | ) | 340,663 | ||||||
| Consolidating Condensed Statement of Earnings Six Months Ended May 31, 2003 (Unaudited) | |||||||||||||
| (In thousands) |
Lennar Corporation |
Guarantor Subsidiaries |
Non-Guarantor Subsidiaries |
Eliminations |
Total | ||||||||
| Revenues: |
|||||||||||||
| Homebuilding |
$ | — | 3,439,348 | — | — | 3,439,348 | |||||||
| Financial services |
— | 6,884 | 263,481 | (6,135 | ) | 264,230 | |||||||
| Total revenues |
— | 3,446,232 | 263,481 | (6,135 | ) | 3,703,578 | |||||||
| Costs and expenses: |
|||||||||||||
| Homebuilding |
— | 3,067,644 | 293 | (2,140 | ) | 3,065,797 | |||||||
| Financial services |
— | 7,216 | 189,486 | (3,995 | ) | 192,707 | |||||||
| Corporate general and administrative |
47,391 | — | — | — | 47,391 | ||||||||
| Total costs and expenses |
47,391 | 3,074,860 | 189,779 | (6,135 | ) | 3,305,895 | |||||||
| Equity in earnings from unconsolidated entities |
— | 19,918 | — | — | 19,918 | ||||||||
| Management fees and other income, net |
— | 10,725 | — | — | 10,725 | ||||||||
| Earnings (loss) before provision (benefit) for income taxes |
(47,391 | ) | 402,015 | 73,702 | — | 428,326 | |||||||
| Provision (benefit) for income taxes |
(18,051 | ) | 151,761 | 27,983 | — | 161,693 | |||||||
| Equity in earnings (losses) from subsidiaries |
295,973 | 45,719 | — | (341,692 | ) | — | |||||||
| Net earnings (loss) |
$ | 266,633 | 295,973 | 45,719 | (341,692 | ) | 266,633 | ||||||
4
Supplemental Financial Information, Continued
Consolidating Condensed Statement of Cash Flows
Six Months Ended May 31, 2004
(Unaudited)
| (In thousands) |
Lennar Corporation |
Guarantor Subsidiaries |
Non-Guarantor Subsidiaries |
Eliminations |
Total |
|||||||||||
| Cash flows from operating activities: |
||||||||||||||||
| Net earnings (loss) |
$ | 340,663 | 377,873 | 31,464 | (409,337 | ) | 340,663 | |||||||||
| Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities |
89,206 | (1,357,584 | ) | 208,301 | 420,443 | (639,634 | ) | |||||||||
| Net cash provided by (used in) operating activities |
429,869 | (979,711 | ) | 239,765 | 11,106 | (298,971 | ) | |||||||||
| Cash flows from investing activities: |
||||||||||||||||
| Increase in investments in unconsolidated entities, net |
— | (277,541 | ) | — | — | (277,541 | ) | |||||||||
| Acquisitions, net of cash acquired |
— | (55,634 | ) | (8,472 | ) | — | (64,106 | ) | ||||||||
| Other |
(11,533 | ) | (5,119 | ) | (6,087 | ) | — | (22,739 | ) | |||||||
| Net cash used in investing activities |
(11,533 | ) | (338,294 | ) | (14,559 | ) | — | (364,386 | ) | |||||||
| Cash flows from financing activities: |
||||||||||||||||
| Net borrowings (repayments) under other borrowings |
(296,000 | ) | (28,887 | ) | 43 | (11,106 | ) | (335,950 | ) | |||||||
| Net repayments under financial services short-term debt |
— | — | (208,641 | ) | — | (208,641 | ) | |||||||||
| Net proceeds from issuance of senior floating-rate notes |
298,500 | — | — | — | 298,500 | |||||||||||
| Common stock: |
||||||||||||||||
| Issuances |
11,561 | — | — | — | 11,561 | |||||||||||
| Repurchases |
(109,644 | ) | — | — | — | (109,644 | ) | |||||||||
| Dividends |
(39,106 | ) | — | — | — | (39,106 | ) | |||||||||
| Intercompany |
(1,177,150 | ) | 1,179,933 | (2,783 | ) | — | — | |||||||||
| Net cash provided by (used in) financing activities |
(1,311,839 | ) | 1,151,046 | (211,381 | ) | (11,106 | ) | (383,280 | ) | |||||||
| Net increase (decrease) in cash |
(893,503 | ) | (166,959 | ) | 13,825 | — | (1,046,637 | ) | ||||||||
| Cash at beginning of period |
893,503 | 307,795 | 69,574 | — | 1,270,872 | |||||||||||
| Cash at end of period |
$ | — | 140,836 | 83,399 | — | 224,235 | ||||||||||
5
Supplemental Financial Information, Continued
Consolidating Condensed Statement of Cash Flows
Six Months Ended May 31, 2003
(Unaudited)
| (In thousands) |
Lennar Corporation |
Guarantor Subsidiaries |
Non-Guarantor Subsidiaries |
Eliminations |
Total |
|||||||||||
| Cash flows from operating activities: |
||||||||||||||||
| Net earnings (loss) |
$ | 266,633 | 295,973 | 45,719 | (341,692 | ) | 266,633 | |||||||||
| Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities |
(362,157 | ) | (601,413 | ) | 233,530 | 334,769 | (395,271 | ) | ||||||||
| Net cash provided by (used in) operating activities |
(95,524 | ) | (305,440 | ) | 279,249 | (6,923 | ) | (128,638 | ) | |||||||
| Cash flows from investing activities: |
||||||||||||||||
| Decrease in investments in unconsolidated entities, net |
— | 35,914 | — | — | 35,914 | |||||||||||
| Acquisitions, net of cash acquired |
— | (100,668 | ) | (7,261 | ) | — | (107,929 | ) | ||||||||
| Other |
(5,091 | ) | 387 | (10,161 | ) | — | (14,865 | ) | ||||||||
| Net cash used in investing activities |
(5,091 | ) | (64,367 | ) | (17,422 | ) | — | (86,880 | ) | |||||||
| Cash flows from financing activities: |
||||||||||||||||
| Net borrowings (repayments) under other borrowings |
(93,000 | ) | (72,745 | ) | 132 | 6,923 | (158,690 | ) | ||||||||
| Net repayments under financial services short-term debt |
— | — | (211,681 | ) | — | (211,681 | ) | |||||||||
| Net proceeds from issuance of 5.95% senior notes |
341,730 | — | — | — | 341,730 | |||||||||||
| Common stock: |
||||||||||||||||
| Issuances |
7,832 | — | — | — | 7,832 | |||||||||||
| Dividends |
(1,993 | ) | — | — | — | (1,993 | ) | |||||||||
| Intercompany |
(409,288 | ) | 447,448 | (38,160 | ) | — | — | |||||||||
| Net cash provided by (used in) financing activities |
(154,719 | ) | 374,703 | (249,709 | ) | 6,923 | (22,802 | ) | ||||||||
| Net increase (decrease) in cash |
(255,334 | ) | 4,896 | 12,118 | — | (238,320 | ) | |||||||||
| Cash at beginning of period |
621,163 | 109,995 | 46,001 | — | 777,159 | |||||||||||
| Cash at end of period |
$ | 365,829 | 114,891 | 58,119 | — | 538,839 | ||||||||||
6
Supplemental Financial Information, Continued
Senior floating-rate notes due 2009
The Company’s obligations to pay principal, premium, if any, and interest under the Company’s senior floating-rate notes due 2009 are guaranteed on a joint and several basis by substantially all of the Company’s subsidiaries formed or acquired on or before October 9, 2001, other than finance company subsidiaries and foreign subsidiaries. The guarantees are full and unconditional and the guarantor subsidiaries are 100% directly or indirectly owned by Lennar Corporation. The Company has determined that separate, full financial statements of the guarantors would not be material to investors and, accordingly, supplemental financial information for the guarantors is presented below. In June 2004, the Company filed a registration statement under the Securities Act of 1933 relating to an offer to exchange the notes guaranteed by subsidiaries formed or acquired on or before October 9, 2001 for notes guaranteed by substantially all of the Company’s subsidiaries, other than finance company subsidiaries and foreign subsidiaries.
Consolidating Condensed Balance Sheet
May 31, 2004
(Unaudited)
| (In thousands) |
Lennar Corporation |
Guarantor Subsidiaries |
Non-Guarantor Subsidiaries |
Eliminations |
Total | ||||||||
| ASSETS |
|||||||||||||
| Homebuilding: |
|||||||||||||
| Cash and receivables, net |
$ | 1,644 | 242,974 | 20,407 | — | 265,025 | |||||||
| Inventories |
— | 4,287,664 | 487,679 | — | 4,775,343 | ||||||||
| Investments in unconsolidated entities |
— | 671,105 | 24,915 | — | 696,020 | ||||||||
| Other assets |
86,205 | 252,716 | 105,269 | — | 444,190 | ||||||||
| Investments in subsidiaries |
4,041,250 | 423,368 | — | (4,464,618 | ) | — | |||||||
| 4,129,099 | 5,877,827 | 638,270 | (4,464,618 | ) | 6,180,578 | ||||||||
| Financial services |
— | 21,071 | 805,583 | (11,149 | ) | 815,505 | |||||||
| Total assets |
$ | 4,129,099 | 5,898,898 | 1,443,853 | (4,475,767 | ) | 6,996,083 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||||||||||
| Homebuilding: |
|||||||||||||
| Accounts payable and other liabilities |
$ | 745,164 | 279,339 | 46,861 | (43 | ) | 1,071,321 | ||||||
| Liabilities related to consolidated inventory not owned |
— | 193,703 | 8,185 | — | 201,888 | ||||||||
| Senior notes and other debts payable, net |
1,489,449 | 115,731 | — | (11,106 | ) | 1,594,074 | |||||||
| Intercompany |
(1,585,490 | ) | 1,352,888 | 232,602 | — | — | |||||||
| 649,123 | 1,941,661 | 287,648 | (11,149 | ) | 2,867,283 | ||||||||
| Financial services |
— | 6,667 | 642,157 | — | 648,824 | ||||||||
| Total liabilities |
649,123 | 1,948,328 | 929,805 | (11,149 | ) | 3,516,107 | |||||||
| Stockholders’ equity |
3,479,976 | 3,950,570 | 514,048 | (4,464,618 | ) | 3,479,976 | |||||||
| Total liabilities and stockholders’ equity |
$ | 4,129,099 | 5,898,898 | 1,443,853 | (4,475,767 | ) | 6,996,083 | ||||||
7
Supplemental Financial Information, Continued
Consolidating Condensed Balance Sheet
November 30, 2003
| (In thousands) |
Lennar Corporation |
Guarantor Subsidiaries |
Non-Guarantor Subsidiaries |
Eliminations |
Total | ||||||||
| ASSETS |
|||||||||||||
| Homebuilding: |
|||||||||||||
| Cash and receivables, net |
$ | 895,715 | 340,163 | 25,790 | — | 1,261,668 | |||||||
| Inventories |
— | 3,258,796 | 397,305 | — | 3,656,101 | ||||||||
| Investments in unconsolidated entities |
16,346 | 364,499 | 9,489 | — | 390,334 | ||||||||
| Other assets |
99,614 | 249,499 | 101,506 | — | 450,619 | ||||||||
| Investments in subsidiaries |
3,541,747 | 390,722 | — | (3,932,469 | ) | — | |||||||
| 4,553,422 | 4,603,679 | 534,090 | (3,932,469 | ) | 5,758,722 | ||||||||
| Financial services |
— | 16,285 | 1,000,425 | — | 1,016,710 | ||||||||
| Total assets |
$ | 4,553,422 | 4,619,964 | 1,534,515 | (3,932,469 | ) | 6,775,432 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||||||||||
| Homebuilding: |
|||||||||||||
| Accounts payable and other liabilities |
$ | 325,695 | 658,057 | 57,209 | — | 1,040,961 | |||||||
| Liabilities related to consolidated inventory not owned |
— | 45,214 | — | — | 45,214 | ||||||||
| Senior notes and other debts payable, net |
1,476,860 | 75,321 | 36 | — | 1,552,217 | ||||||||
| Intercompany |
(512,907 | ) | 369,936 | 142,971 | — | — | |||||||
| 1,289,648 | 1,148,528 | 200,216 | — | 2,638,392 | |||||||||
| Financial services |
— | 7,220 | 866,046 | — | 873,266 | ||||||||
| Total liabilities |
1,289,648 | 1,155,748 | 1,066,262 | — | 3,511,658 | ||||||||
| Stockholders’ equity |
3,263,774 | 3,464,216 | 468,253 | (3,932,469 | ) | 3,263,774 | |||||||
| Total liabilities and stockholders’ equity |
$ | 4,553,422 | 4,619,964 | 1,534,515 | (3,932,469 | ) | 6,775,432 | ||||||
8
Supplemental Financial Information, Continued
Consolidating Condensed Statement of Earnings
Three Months Ended May 31, 2004
(Unaudited)
| (In thousands) |
Lennar Corporation |
Guarantor Subsidiaries |
Non-Guarantor Subsidiaries |
Eliminations |
Total | |||||||||
| Revenues: |
||||||||||||||
| Homebuilding |
$ | — | 2,014,390 | 196,333 | — | 2,210,723 | ||||||||
| Financial services |
— | 8,448 | 129,032 | (5,318 | ) | 132,162 | ||||||||
| Total revenues |
— | 2,022,838 | 325,365 | (5,318 | ) | 2,342,885 | ||||||||
| Costs and expenses: |
||||||||||||||
| Homebuilding |
— | 1,738,033 | 183,497 | (657 | ) | 1,920,873 | ||||||||
| Financial services |
— | 2,612 | 101,917 | (4,661 | ) | 99,868 | ||||||||
| Corporate general and administrative |
31,251 | — | — | — | 31,251 | |||||||||
| Total costs and expenses |
31,251 | 1,740,645 | 285,414 | (5,318 | ) | 2,051,992 | ||||||||
| Equity in earnings (losses) from unconsolidated entities |
— | 14,980 | (1,022 | ) | — | 13,958 | ||||||||
| Management fees and other income, net |
— | 18,302 | 399 | — | 18,701 | |||||||||
| Earnings (loss) before provision (benefit) for income taxes |
(31,251 | ) | 315,475 | 39,328 | — | 323,552 | ||||||||
| Provision (benefit) for income taxes |
(11,900 | ) | 119,092 | 14,949 | — | 122,141 | ||||||||
| Equity in earnings (losses) from subsidiaries |
220,762 | 16,675 | — | (237,437 | ) | — | ||||||||
| Net earnings (loss) |
$ | 201,411 | 213,058 | 24,379 | (237,437 | ) | 201,411 | |||||||
| Consolidating Condensed Statement of Earnings Three Months Ended May 31, 2003 (Unaudited) | ||||||||||||||
| (In thousands) |
Lennar Corporation |
Guarantor Subsidiaries |
Non-Guarantor Subsidiaries |
Eliminations |
Total | |||||||||
| Revenues: |
||||||||||||||
| Homebuilding |
$ | — | 1,758,878 | 208,135 | — | 1,967,013 | ||||||||
| Financial services |
— | 5,588 | 135,682 | (5,175 | ) | 136,095 | ||||||||
| Total revenues |
— | 1,764,466 | 343,817 | (5,175 | ) | 2,103,108 | ||||||||
| Costs and expenses: |
||||||||||||||
| Homebuilding |
— | 1,551,066 | 187,655 | (1,180 | ) | 1,737,541 | ||||||||
| Financial services |
— | 5,645 | 97,267 | (3,995 | ) | 98,917 | ||||||||
| Corporate general and administrative |
25,727 | — | — | — | 25,727 | |||||||||
| Total costs and expenses |
25,727 | 1,556,711 | 284,922 | (5,175 | ) | 1,862,185 | ||||||||
| Equity in earnings (losses) from unconsolidated entities |
— | 11,343 | (27 | ) | — | 11,316 | ||||||||
| Management fees and other income, net |
— | 4,882 | 413 | — | 5,295 | |||||||||
| Earnings (loss) before provision (benefit) for income taxes |
(25,727 | ) | 223,980 | 59,281 | — | 257,534 | ||||||||
| Provision (benefit) for income taxes |
(9,802 | ) | 84,553 | 22,468 | — | 97,219 | ||||||||
| Equity in earnings (losses) from subsidiaries |
176,240 | 23,725 | — | (199,965 | ) | — | ||||||||
| Net earnings (loss) |
$ | 160,315 | 163,152 | 36,813 | (199,965 | ) | 160,315 | |||||||
9
Supplemental Financial Information, Continued
Consolidating Condensed Statement of Earnings
Six Months Ended May 31, 2004
(Unaudited)
| (In thousands) |
Lennar Corporation |
Guarantor Subsidiaries |
Non-Guarantor Subsidiaries |
Eliminations |
Total | |||||||||
| Revenues: |
||||||||||||||
| Homebuilding |
$ | — | 3,630,406 | 337,699 | — | 3,968,105 | ||||||||
| Financial services |
— | 10,650 | 236,146 | (9,109 | ) | 237,687 | ||||||||
| Total revenues |
— | 3,641,056 | 573,845 | (9,109 | ) | 4,205,792 | ||||||||
| Costs and expenses: |
||||||||||||||
| Homebuilding |
— | 3,157,024 | 316,333 | (1,170 | ) | 3,472,187 | ||||||||
| Financial services |
— | 5,311 | 185,026 | (7,939 | ) | 182,398 | ||||||||
| Corporate general and administrative |
59,929 | — | — | — | 59,929 | |||||||||
| Total costs and expenses |
59,929 | 3,162,335 | 501,359 | (9,109 | ) | 3,714,514 | ||||||||
| Equity in earnings (losses) from unconsolidated entities |
— | 22,224 | (2,989 | ) | — | 19,235 | ||||||||
| Management fees and other income, net |
— | 34,413 | 2,324 | — | 36,737 | |||||||||
| Earnings (loss) before provision (benefit) for income taxes |
(59,929 | ) | 535,358 | 71,821 | — | 547,250 | ||||||||
| Provision (benefit) for income taxes |
(22,719 | ) | 202,098 | 27,208 | — | 206,587 | ||||||||
| Equity in earnings (losses) from subsidiaries |
377,873 | 31,464 | — | (409,337 | ) | — | ||||||||
| Net earnings (loss) |
$ | 340,663 | 364,724 | 44,613 | (409,337 | ) | 340,663 | |||||||
Consolidating Condensed Statement of Earnings
Six Months Ended May 31, 2003
(Unaudited)
| (In thousands) |
Lennar Corporation |
Guarantor Subsidiaries |
Non-Guarantor Subsidiaries |
Eliminations |
Total | |||||||||
| Revenues: |
||||||||||||||
| Homebuilding |
$ | — | 3,055,017 | 384,331 | — | 3,439,348 | ||||||||
| Financial services |
— | 6,884 | 263,481 | (6,135 | ) | 264,230 | ||||||||
| Total revenues |
— | 3,061,901 | 647,812 | (6,135 | ) | 3,703,578 | ||||||||
| Costs and expenses: |
||||||||||||||
| Homebuilding |
— | 2,720,157 | 347,780 | (2,140 | ) | 3,065,797 | ||||||||
| Financial services |
— | 7,216 | 189,486 | (3,995 | ) | 192,707 | ||||||||
| Corporate general and administrative |
47,391 | — | — | — | 47,391 | |||||||||
| Total costs and expenses |
47,391 | 2,727,373 | 537,266 | (6,135 | ) | 3,305,895 | ||||||||
| Equity in earnings (losses) from unconsolidated entities |
— | 19,938 | (20 | ) | — | 19,918 | ||||||||
| Management fees and other income, net |
— | 9,779 | 946 | — | 10,725 | |||||||||
| Earnings (loss) before provision (benefit) for income taxes |
(47,391 | ) | 364,245 | 111,472 | — | 428,326 | ||||||||
| Provision (benefit) for income taxes |
(18,051 | ) | 137,503 | 42,241 | — | 161,693 | ||||||||
| Equity in earnings (losses) from subsidiaries |
295,973 | 45,719 | — | (341,692 | ) | — | ||||||||
| Net earnings (loss) |
$ | 266,633 | 272,461 | 69,231 | (341,692 | ) | 266,633 | |||||||
10
Supplemental Financial Information, Continued
Consolidating Condensed Statement of Cash Flows
Six Months Ended May 31, 2004
(Unaudited)
| (In thousands) |
Lennar Corporation |
Guarantor Subsidiaries |
Non-Guarantor Subsidiaries |
Eliminations |
Total |
|||||||||||
| Cash flows from operating activities: |
||||||||||||||||
| Net earnings (loss) |
$ | 340,663 | 364,724 | 44,613 | (409,337 | ) | 340,663 | |||||||||
| Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities |
89,206 | (1,261,679 | ) | 112,396 | 420,443 | (639,634 | ) | |||||||||
| Net cash provided by (used in) operating activities |
429,869 | (896,955 | ) | 157,009 | 11,106 | (298,971 | ) | |||||||||
| Cash flows from investing activities: |
||||||||||||||||
| Increase in investments in unconsolidated entities, net |
— | (259,126 | ) | (18,415 | ) | — | (277,541 | ) | ||||||||
| Acquisitions, net of cash acquired |
— | (55,634 | ) | (8,472 | ) | — | (64,106 | ) | ||||||||
| Other |
(11,533 | ) | (4,509 | ) | (6,697 | ) | — | (22,739 | ) | |||||||
| Net cash used in investing activities |
(11,533 | ) | (319,269 | ) | (33,584 | ) | — | (364,386 | ) | |||||||
| Cash flows from financing activities: |
||||||||||||||||
| Net borrowings (repayments) under other borrowings |
(296,000 | ) | (28,851 | ) | 7 | (11,106 | ) | (335,950 | ) | |||||||
| Net repayments under financial services short-term debt |
— | — | (208,641 | ) | — | (208,641 | ) | |||||||||
| Net proceeds from issuance of senior floating-rate notes |
298,500 | — | — | — | 298,500 | |||||||||||
| Common stock: |
||||||||||||||||
| Issuances |
11,561 | — | — | — | 11,561 | |||||||||||
| Repurchases |
(109,644 | ) | — | — | — | (109,644 | ) | |||||||||
| Dividends |
(39,106 | ) | — | — | — | (39,106 | ) | |||||||||
| Intercompany |
(1,177,150 | ) | 1,087,049 | 90,101 | — | — | ||||||||||
| Net cash provided by (used in) financing activities |
(1,311,839 | ) | 1,058,198 | (118,533 | ) | (11,106 | ) | (383,280 | ) | |||||||
| Net increase (decrease) in cash |
(893,503 | ) | (158,026 | ) | 4,892 | — | (1,046,637 | ) | ||||||||
| Cash at beginning of period |
893,503 | 284,907 | 92,462 | — | 1,270,872 | |||||||||||
| Cash at end of period |
$ | — | 126,881 | 97,354 | — | 224,235 | ||||||||||
11
Supplemental Financial Information, Continued
Consolidating Condensed Statement of Cash Flows
Six Months Ended May 31, 2003
(Unaudited)
| (In thousands) |
Lennar Corporation |
Guarantor Subsidiaries |
Non-Guarantor Subsidiaries |
Eliminations |
Total |
|||||||||||
| Cash flows from operating activities: |
||||||||||||||||
| Net earnings (loss) |
$ | 266,633 | 272,461 | 69,231 | (341,692 | ) | 266,633 | |||||||||
| Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities |
(362,157 | ) | (520,184 | ) | 152,301 | 334,769 | (395,271 | ) | ||||||||
| Net cash provided by (used in) operating activities |
(95,524 | ) | (247,723 | ) | 221,532 | (6,923 | ) | (128,638 | ) | |||||||
| Cash flows from investing activities: |
||||||||||||||||
| (Increase) decrease in investments in unconsolidated entities, net |
— | 36,114 | (200 | ) | — | 35,914 | ||||||||||
| Acquisitions, net of cash acquired |
— | — | (107,929 | ) | — | (107,929 | ) | |||||||||
| Other |
(5,091 | ) | 798 | (10,572 | ) | — | (14,865 | ) | ||||||||
| Net cash provided by (used in) investing activities |
(5,091 | ) | 36,912 | (118,701 | ) | — | (86,880 | ) | ||||||||
| Cash flows from financing activities: |
||||||||||||||||
| Net borrowings (repayments) under other borrowings |
(93,000 | ) | (57,225 | ) | (15,388 | ) | 6,923 | (158,690 | ) | |||||||
| Net repayments under financial services short-term debt |
— | — | (211,681 | ) | — | (211,681 | ) | |||||||||
| Net proceeds from issuance of 5.95% senior notes |
341,730 | — | — | — | 341,730 | |||||||||||
| Common stock: |
||||||||||||||||
| Issuances |
7,832 | — | — | — | 7,832 | |||||||||||
| Dividends |
(1,993 | ) | — | — | — | (1,993 | ) | |||||||||
| Intercompany |
(409,288 | ) | 285,643 | 123,645 | — | — | ||||||||||
| Net cash provided by (used in) financing activities |
(154,719 | ) | 228,418 | (103,424 | ) | 6,923 | (22,802 | ) | ||||||||
| Net increase (decrease) in cash |
(255,334 | ) | 17,607 | (593 | ) | — | (238,320 | ) | ||||||||
| Cash at beginning of period |
621,163 | 97,284 | 58,712 | — | 777,159 | |||||||||||
| Cash at end of period |
$ | 365,829 | 114,891 | 58,119 | — | 538,839 | ||||||||||
12