(1) Lennar Homebuilding costs and expenses include S$1.3 million, $373.5 million and $340.5 million, respectively, of valuation adjustments and write-offs of option deposits and pre-acquisition cots for the years ended November 30, 2010, 2009 and 2008. (2) Lennar Financial Services costs and expenses for the year ended November 30, 2008 incluce a $27.2 million impairment of goodwill. (3) Lennar Homebuilding equity in loss from unconsolidated entities includes the Company's share of valuation adjustments related to astets of unconsolidated entities in which the Company has investments of $10.5 million, $101.9 million and $32.2 million, respectively, for the years ended November 30, 2010, 2009 and 2008. (4) Lennar Homebuilding other income (expense), net includes valuation adjustments to invesments in Lennar Homebuilding unconsolidated entities of $1,7 million, $89.0 million and $172.8 million, respcctively, for the years ended November 30, 2010, 2009 and 2008. (5) Benefit (provision) for income taxes for the year ended November 30, 2010 primarily related to settlements with various taxing authorities. For the year ended November 30, 2009, benefit (provision) for income taxes includes a reversal of the Company's deferred tax assct valuation allowance of $351.8 million. For the year ended November 30, 2008, benefit (provision) for income taxes includes a $730.8 million valuation allowance recorded sgainst the Company's deferred tax assets. (6) Net carnings (loss) attributable to noncontrolling interests for the year nded Novenber 30, 2010 includes $33.2 million related to the FDIC's interest in the portfolio of real estate loans thar the Company acquired in partnership with the FDIC Net canings (loss) attributable to noncontrolling interests for the year endec November 30, 2009 includes ($13.6) million recorded as a result of $27.2 million of valuation adjustments to iaventories of 30%owned consolidated joint ventures. Required Would you consider the presencation to be a multiple-oep income statement or a single step income statement) Comment &. Does tappear that there is a 100% ownenhip in all consolidated subsidiaries? Ha subsidiary were not consolidated but rather accounted for using the equity method, would this change net carnings tloss)? Explain, d. Descr be equity in loss from unconsolidated entides. e. Comment os Noer 1. Does this none project favorably on the future of Lensar Corporation? Explain. f. Comment on Note 2. Why take sn impuirment for goodwill under financial services? LENNAR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS Years Ended November 30, 2010, 2009 and 2008 2010 2009 2008 (Dollars in thousands, except per share amounts) Revenues: Lennar Homebuilding Lennar Financial services Rialto Investments Total revenues Costs and expenses: Lennar Homebuikding (1) Lennar Financial services (2) Rialto Investments Corporate general and administrative Total costs and expenses Lennar Homebuilding equity in loss from unconsolidated entities (3) Lennar Homebuilding other income (expense), net (4) Other interest expense $2,705,639 275,786 92,597 3,074,022 2,834,285 285,102 4,263,038 312,379 3,119,387 4,575,417 2,543,323 244,502 67,904 93,926 2,949,655 3,210,386 249,120 2,528 117,565 3.579,599 4,541,881 343,369 129,752 5,015,002 (10,966) 19,135 (70,245) (130,917) (98,425) (70,850) (59,156) (172,387) (27,594) Gain on recapitalizaion of Lennar Homebuilding unconsolidated enity Rialto Investments equity in earnings from unconsolidated entities Rialto Investments other income, net Earnings (loss) before income taxes Benefit (provision) for income taxes (5) Net earnings (loss) (including net carnings (loss) attributable to noscontrolling interests) 133,097 15,363 17,251 94,725 25,734 (760,404) 314,345 (565,625) (547,557) 120,459 (446,059) (1,113,182) 2010 2009 2008 (Dollars in thousands, except per share amounts) Lesse Net carnings (doss) attributable to noncontrolling interests (6) Nat carnings (Joss) attributable to Lennar Basle earnings (en) per share Dilused carnings (loss) per share 25,198 95261 (28,912) (417,147 (2.45) (2.45) (4,097) 1,109,085) (7.01) (7.01) 0.31 0.1