Lennar Homebuilding Investments In Unconsolidated Entities (Tables)

12 Months Ended

Nov. 30, 2021

Equity Method Investments and Joint Ventures [Abstract]

The investments in Company's Homebuilding unconsolidated entities were as follows:


	November 30,
(In thousands)	2021		2020
Investments in unconsolidated entities (1) (2)	$	972,084	953,177
Underlying equity in unconsolidated entities' net assets (1)	1,301,719		1,269,701

(1)The basis difference was primarily as a result of the Company contributing its investment in three strategic joint ventures with a higher fair value than book value for an investment in the FivePoint entity and deferring equity in earnings on land sales to the Company.

(2)Included in the Company's recorded investments in Homebuilding unconsolidated entities is the Company's 40% ownership of FivePoint. As of November 30, 2021 and 2020, the carrying amount of the Company's investment was $381.6 million and $392.1 million, respectively.

The details of the activity was as follows:


	Years Ended November 30,
(In thousands)	2021		2020	2019
Land sales revenues (1)	$	57,944	99,935	82,966
Management fees and reimbursement of expenses, net of deferrals	16,464		2,363	2,716

(1)The Company does not include in its Homebuilding equity in loss from unconsolidated entities its pro-rata share of unconsolidated entities’ earnings resulting from land sales to its homebuilding divisions. Instead, the Company accounts for those earnings as a reduction of the cost of purchasing the land from the unconsolidated entities. This in effect defers recognition of the Company’s share of the unconsolidated entities’ earnings related to these sales until the Company delivers a home and title passes to a third-party homebuyer.

The details of the activity was as follows:


	Years Ended November 30,
(In thousands)	2021		2020	2019
General contractor services, net of deferrals	$	549,400	400,808	355,388
General contractor costs	533,398		383,649	340,081
Management fee income	56,573		56,253	53,597

Details of each as of and during the year ended November 30, 2021 are included below:


	November 30, 2021
(In thousands)	LMV I		LMV II
Lennar's carrying value of investments	$	254,732	320,565
Equity commitments	2,204,016		1,257,700
Equity commitments called	2,149,357		1,201,475
Lennar's equity commitments	504,016		381,000
Lennar's equity commitments called	499,031		362,913
Lennar's remaining commitments	4,985		18,087
Distributions to Lennar during the year ended November 30, 2021	67,197		9,672

Summarized condensed financial information on a combined 100% basis related to the Company's unconsolidated entities that are accounted for under the equity method was as follows:


(In thousands)	November 30, 2021
Assets:	Homebuilding		Multifamily	Lennar Other	Total
Cash and cash equivalents	$	460,901	25,972	430,807	917,680
Loans receivable	—		—	65,971	65,971
Real estate owned	—		—	279,200	279,200
Investment securities	—		—	2,461,788	2,461,788
Investments in partnerships	—		—	346,042	346,042
Inventories	4,666,454		—	—	4,666,454
Operating properties and equipment	44,802		6,406,500	—	6,451,302
Other assets	1,044,771		111,750	219,680	1,376,201
	$	6,216,928	6,544,222	3,803,488	16,564,638
Liabilities and equity:
Accounts payable and other liabilities	$	904,078	240,928	179,879	1,324,885

Debt (1)	1,216,721		3,407,362	399,632	5,023,715
Equity	4,096,129		2,895,932	3,223,977	10,216,038
	$	6,216,928	6,544,222	3,803,488	16,564,638
Investments in unconsolidated entities	$	972,084	654,029	346,270	1,972,383


(In thousands)	November 30, 2020
Assets:	Homebuilding		Multifamily	Lennar Other	Total
Cash and cash equivalents	$	546,013	94,801	284,517	814,222
Loans receivable	—		—	95,281	95,281
Real estate owned	—		—	295,391	295,391
Investment securities	—		—	2,169,480	2,093,766
Investments in partnerships	—		—	260,721	260,721
Inventories	4,527,371		—	—	4,527,371
Operating properties and equipment	148,020		5,392,681	23,968	5,564,669
Other assets	862,875		115,968	1,263,881	2,077,942
	$	6,084,279	5,603,450	4,393,239	15,729,363
Liabilities and equity:
Accounts payable and other liabilities	$	866,812	219,522	190,384	1,117,447

Debt (1)	1,085,639		2,519,567	292,313	3,897,519
Equity	4,131,828		2,864,361	3,910,542	10,714,397
	$	6,084,279	5,603,450	4,393,239	15,729,363
Investments in unconsolidated entities	$	953,177	724,647	387,097	2,064,921

(1)Debt noted above is net of debt issuance costs. As of November 30, 2021 and 2020 this includes $11.9 million and $11.8 million, respectively, for Homebuilding, $23.4 million and $31.1 million, respectively, for Multifamily and an immaterial amount of debt issuance costs for Lennar Other.


(In thousands)
Statement of Operations Years Ended:	Revenues		Cost and expenses	Other income (expense), net (1)	Net earnings (loss) of unconsolidated entities	Equity in earnings (loss) from unconsolidated entities
November 30, 2021	$	1,383,266	1,448,775	187,625	122,116	48,993
November 30, 2020	1,362,686		1,221,873	(244,680)	(103,867)	(13,939)
November 30, 2019	782,712		774,550	347,018	355,180	13,393

(1)Other income (expense), net included realized and unrealized gains (losses) on investments.