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Lennar Annual Report (Amendment), Year Ended Nov 30, 2012

Filing Date
Filed August 1, 2013
Period End
November 30, 2012
Securities
LENLEN-B
In the record · 2016–202610-K1210-Q338-K129

LEN filed 12 annual reports (10-K), 33 quarterly reports (10-Q) and 129 current reports (8-K) between 2016 and 2026.

  1. FY2016 annual report10-K · Jan ’17Jan ’17
  2. Material agreement8-K · Apr ’19Apr ’19
  3. Leadership change8-K · Mar ’22Mar ’22
  4. Leadership change8-K · Nov ’25Nov ’25

01—Abstract

Summary

Summary of the 10-K/A filed August 1, 2013. Cited figures are marked; the original filing is the authoritative source.

Lennar Corporation reported consolidated revenues of $4.10 billiona for the fiscal year ended November 30, 2012, up from $3.10 billion in 2011, with homebuilding revenues of $3.58 billion, Lennar Financial Services revenues of $384.6 million and Rialto Investments revenues of $138.9 million.

Net earnings attributable to Lennar were $679.1 millionb, or $3.11 per diluted share, compared with $92.2 million in 2011. The result was driven largely by a $435.2 million income tax benefit, which reflected the reversal of $491.5 million of the valuation allowance against deferred tax assets after the company concluded it was more likely than not to realize most of those assets. Total operating earnings were $349.5 million, and the company recorded $28.8 million of valuation adjustments and write-offs during the year, down from $62.2 million in 2011.

At November 30, 2012, total assets were $10.36 billionc and total equity was $4.00 billion. Lennar Homebuilding senior notes and other debts payable totaled $4.01 billion, and cash and cash equivalents across segments were $1.31 billion. Operating activities used $424.6 million of cash in 2012, while investing activities provided $245.3 million and financing activities provided $326.5 million.

During the year the company issued $350 milliond of 4.750% senior notes due 2022 and $400 million of 4.75% senior notes due 2017, and it partially redeemed its 5.95% senior notes due 2013. Active communities rose to 457 from 420. This filing also includes revised supplemental consolidating financial information in Note 17.

The revisions relate to transactions between Lennar Corporation and its subsidiaries and, according to the filing, do not affect the consolidated financial statements. The auditor's report from Deloitte & Touche LLP is dated January 29, 2013, except for Note 17, which is dated July 31, 2013.

02—Key points

Key Highlights

  1. Total revenues of $4.10 billion for 2012, compared with $3.10 billion in 2011, led by Lennar Homebuilding revenues of $3.58 billion.
  2. Net earnings attributable to Lennar of $679.1 million, or $3.11 per diluted share, versus $92.2 million, or $0.48 per diluted share, in 2011.
  3. A $435.2 million income tax benefit, including the reversal of $491.5 million of the deferred tax asset valuation allowance; a valuation allowance of $88.8 million remained, mainly on state net operating loss carryforwards.
  4. Net deferred tax assets of $467.6 million at November 30, 2012, and federal and state net operating loss carryforwards of $452.4 million on a tax-effected basis.
  5. Total assets of $10.36 billion and total equity of $4.00 billion at November 30, 2012, with Lennar Homebuilding senior notes and other debts payable of $4.01 billion.
  6. Operating cash outflow of $424.6 million in 2012 driven by a $563.1 million increase in inventories, excluding valuation adjustments, while investing activities provided $245.3 million.
  7. Homebuilding valuation adjustments and write-offs totaled $28.8 million in 2012, down from $62.2 million in 2011; sales incentives were $388.2 million, or $28,300 per home delivered.

03—Questions

Frequently Asked Questions

  1. What drove the large net earnings increase in fiscal 2012?

    Net earnings attributable to Lennar rose to $679.1 million from $92.2 million, largely because of a $435.2 million income tax benefit. The benefit came mainly from reversing $491.5 million of the valuation allowance against deferred tax assets, after the company concluded it was more likely than not to realize most of them. Earnings before income taxes were $222.1 million, compared with $98.0 million in 2011.

  2. How much debt does Lennar carry and what did it issue in 2012?

    Lennar Homebuilding senior notes and other debts payable were $4.01 billion at November 30, 2012, up from $3.36 billion a year earlier. During 2012 the company issued $750 million of senior notes, including $350 million of 4.750% senior notes due 2022 and $400 million of 4.75% senior notes due 2017, and $50 million of additional 3.25% convertible senior notes. It also made a partial redemption of senior notes totaling $210.9 million and repurchased $204.7 million aggregate principal amount of its 5.95% senior notes due 2013 through a tender offer.

  3. What is the status of the company's Rialto Investments segment?

    Rialto Investments generated revenues of $138.9 million and operating earnings of $11.6 million in 2012, compared with revenues of $164.7 million and operating earnings of $63.5 million in 2011. Its loans receivable, net, were $436.5 million, down from $713.4 million, and it recorded $41.5 million of equity in earnings from unconsolidated entities. The segment's FDIC-related notes payable were $470.0 million at November 30, 2012, and the company's equity interest in the LLCs is 40%.

  4. Why did the company disclose revised supplemental information in this filing?

    Note 17 states that after the November 30, 2012 consolidated financial statements were issued, the company determined it needed to revise the presentation of its supplemental consolidating financial information. The revisions relate to transactions between Lennar Corporation and its subsidiaries, including intercompany accounts, equity in earnings, and cash flow classifications. The filing states these revisions do not affect the company's consolidated financial statements.

04—Continue

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