Cover Page
Cover Page | 3 Months Ended |
Feb. 28, 2022$ / sharesshares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Feb. 28, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q1 |
Entity Registrant Name | KB HOME |
Entity Central Index Key | 0000795266 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Current Fiscal Year End Date | --11-30 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock Shares Outstanding | 88,622,129 |
Entity Shell Company | false |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity File Number | 001-09195 |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 95-3666267 |
Entity Address, Address Line One | 10990 Wilshire Boulevard |
Entity Address, City or Town | Los Angeles |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 90024 |
City Area Code | 310 |
Local Phone Number | 231-4000 |
Common Stock, Par or Stated Value Per Share | $ / shares | $ 1 |
Document Quarterly Report | true |
Document Transition Report | false |
Grantor Stock Ownership Trust | |
Document Information [Line Items] | |
Entity Common Stock Shares Outstanding | 6,705,247 |
Common Stock | |
Document Information [Line Items] | |
Title of 12(b) Security | Common Stock (par value $1.00 per share) |
Trading Symbol | KBH |
Security Exchange Name | NYSE |
Rights | |
Document Information [Line Items] | |
Title of 12(b) Security | Rights to Purchase Series A Participating Cumulative Preferred Stock |
Trading Symbol | KBH |
Security Exchange Name | NYSE |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Total revenues | $ 1,398,789 | $ 1,141,738 |
Equity in income of unconsolidated joint ventures | 5,171 | 6,274 |
Income (Loss) from Continuing Operations before Income Taxes, Domestic | 178,057 | 123,551 |
Income tax expense | (43,800) | (26,500) |
Net income | $ 134,257 | $ 97,051 |
Earnings per share: | ||
Basic (in dollars per share) | $ 1.51 | $ 1.05 |
Diluted (in dollars per share) | $ 1.47 | $ 1.02 |
Weighted average shares outstanding: | ||
Basic (in shares) | 88,285 | 91,716 |
Diluted (in shares) | 91,067 | 94,903 |
Home Building [Member] | ||
Total revenues | $ 1,394,154 | $ 1,138,008 |
Costs of goods and services sold | (1,082,112) | (901,909) |
Selling, general and administrative expenses | (142,480) | (122,005) |
Operating income | 169,562 | 114,094 |
Interest income | 36 | 653 |
Equity in income of unconsolidated joint ventures | 23 | 304 |
Income (Loss) from Continuing Operations before Income Taxes, Domestic | 169,621 | 115,051 |
Financial Service [Member] | ||
Total revenues | 4,635 | 3,730 |
Selling, general and administrative expenses | (1,347) | (1,200) |
Operating income | 3,288 | 2,530 |
Equity in income of unconsolidated joint ventures | 5,148 | 5,970 |
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $ 8,436 | $ 8,500 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Feb. 28, 2022 | Nov. 30, 2021 | |
Assets | |||
Cash and cash equivalents | $ 242,737 | ||
Inventories | 5,197,833 | $ 4,802,829 | |
Total assets | 6,188,327 | 5,835,918 | |
Liabilities and stockholders’ equity | |||
Accrued expenses and other liabilities | 756,905 | ||
Mortgages and notes payable | 1,934,948 | 1,685,027 | |
Common stock | 100,711 | 100,711 | |
Paid-in capital | 828,238 | 848,620 | |
Retained earnings | 2,499,491 | 2,379,364 | |
Accumulated other comprehensive loss | (19,119) | (19,119) | |
Grantor stock ownership trust, at cost | (72,718) | (72,718) | |
Treasury stock, at cost | (202,287) | (217,383) | |
Total stockholders’ equity | 3,134,316 | 3,019,475 | |
Total liabilities and stockholders’ equity | 6,188,327 | 5,835,918 | |
Home Building [Member] | |||
Assets | |||
Cash and cash equivalents | 240,688 | 290,764 | |
Receivables | 313,116 | 304,191 | |
Inventories | 5,197,833 | 4,802,829 | |
Investments in unconsolidated joint ventures | 38,375 | 36,088 | |
Property and equipment, net | 79,247 | 76,313 | |
Deferred tax assets, net | 172,978 | 177,378 | |
Other assets | 104,716 | 104,153 | |
Total assets | 6,146,953 | 5,791,716 | |
Liabilities and stockholders’ equity | |||
Accounts payable | 382,003 | 371,826 | |
Accrued expenses and other liabilities | 734,252 | 756,905 | |
Mortgages and notes payable | 1,934,948 | 1,685,027 | |
Total Liabilities | 3,051,203 | 2,813,758 | |
Financial Service [Member] | |||
Assets | |||
Cash and cash equivalents | 2,049 | 1,372 | |
Receivables | 1,810 | 2,166 | |
Investments in unconsolidated joint ventures | 12,415 | 16,317 | |
Other assets | [1] | 25,100 | 24,347 |
Total assets | 41,374 | 44,202 | |
Liabilities and stockholders’ equity | |||
Financial services | $ 2,808 | $ 2,685 | |
[1] | Other assets at February 28, 2022 and November 30, 2021 included $24.9 million and $24.1 million, respectively, of contract assets for estimated future renewal commissions. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 134,257 | $ 97,051 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Equity in income of unconsolidated joint ventures | (5,171) | (6,274) |
Distributions of earnings from unconsolidated joint ventures | 9,295 | 5,750 |
Amortization of premiums and issuance costs | 549 | 644 |
Depreciation and amortization | 7,627 | 7,080 |
Deferred income taxes | 4,400 | 16,000 |
Stock-based compensation | 6,867 | 5,572 |
Inventory impairments and land option contract abandonments | 175 | 4,064 |
Changes in assets and liabilities: | ||
Receivables | (8,569) | 23,332 |
Inventories | (405,851) | (229,137) |
Accounts payable, accrued expenses and other liabilities | 2,069 | (10,130) |
Other, net | 3,317 | 6,783 |
Net cash used in operating activities | (251,035) | (79,265) |
Cash flows from investing activities: | ||
Contributions to unconsolidated joint ventures | (8,568) | (2,625) |
Return of investments in unconsolidated joint ventures | 1,255 | 0 |
Purchases of property and equipment, net | (10,563) | (9,098) |
Net cash used in investing activities | (17,876) | (11,723) |
Cash flows from financing activities: | ||
Borrowings under revolving credit facility | 675,000 | 0 |
Repayments under revolving credit facility | (425,000) | 0 |
Issuance costs for unsecured revolving credit facility | (3,805) | 0 |
Payments on mortgages and land contracts due to land sellers and other loans | (400) | (600) |
Issuance of common stock under employee stock plans | 0 | 2,538 |
Tax payments associated with stock-based compensation awards | (12,153) | (8,456) |
Payments of cash dividends | (14,130) | (14,064) |
Net cash provided by (used in) financing activities | 219,512 | (20,582) |
Net decrease in cash and cash equivalents | (49,399) | (111,570) |
Cash and cash equivalents at beginning of period | 292,136 | 682,529 |
Cash and cash equivalents at end of period | $ 242,737 | $ 570,959 |
Supplemental Disclosure to Cons
Supplemental Disclosure to Consolidated Statements of Cash Flows | 3 Months Ended |
Feb. 28, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Disclosure to Consolidated Statements of Cash Flows | Supplemental Disclosure to Consolidated Statements of Cash Flows The following are supplemental disclosures to the consolidated statements of cash flows (in thousands): Three Months Ended February 28, 2022 2021 Summary of cash and cash equivalents at end of period: Homebuilding $ 240,688 $ 569,793 Financial services 2,049 1,166 Total $ 242,737 $ 570,959 Supplemental disclosures of cash flow information: Interest paid, net of amounts capitalized $ (7,606) $ (3,860) Income taxes paid 340 81 Supplemental disclosures of non-cash activities: Decrease in consolidated inventories not owned (14,623) (1,863) Increase in inventories due to distributions of land and land development from an unconsolidated joint venture 3,951 3,261 |
Supplemental Disclosure to Co_2
Supplemental Disclosure to Consolidated Statements of Cash Flows | 3 Months Ended |
Feb. 28, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Supplemental Cash Flow Disclosures | The following are supplemental disclosures to the consolidated statements of cash flows (in thousands): Three Months Ended February 28, 2022 2021 Summary of cash and cash equivalents at end of period: Homebuilding $ 240,688 $ 569,793 Financial services 2,049 1,166 Total $ 242,737 $ 570,959 Supplemental disclosures of cash flow information: Interest paid, net of amounts capitalized $ (7,606) $ (3,860) Income taxes paid 340 81 Supplemental disclosures of non-cash activities: Decrease in consolidated inventories not owned (14,623) (1,863) Increase in inventories due to distributions of land and land development from an unconsolidated joint venture 3,951 3,261 |
Supplemental Disclosure to Co_3
Supplemental Disclosure to Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Nov. 30, 2021 | |
Summary of cash and cash equivalents at end of period: | |||
Cash and cash equivalents | $ 242,737 | $ 570,959 | |
Supplemental disclosures of cash flow information: | |||
Interest paid, net of amounts capitalized | (7,606) | (3,860) | |
Income taxes paid | 340 | 81 | |
Supplemental disclosures of non-cash activities: | |||
Decrease in consolidated inventories not owned | (14,623) | (1,863) | |
Inspirada Builders LLC | |||
Supplemental disclosures of non-cash activities: | |||
Increase in inventories due to distributions of land and land development from an unconsolidated joint venture | 3,951 | 3,261 | |
Home Building [Member] | |||
Summary of cash and cash equivalents at end of period: | |||
Cash and cash equivalents | 240,688 | 569,793 | $ 290,764 |
Financial Service [Member] | |||
Summary of cash and cash equivalents at end of period: | |||
Cash and cash equivalents | $ 2,049 | $ 1,166 | $ 1,372 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Feb. 28, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of Presentation. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended November 30, 2021, which are contained in our Annual Report on Form 10-K for that period. The consolidated balance sheet at November 30, 2021 has been taken from the audited consolidated financial statements as of that date. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) considered necessary for the fair presentation of our results for the interim periods presented. The results of our consolidated operations for the three months ended February 28, 2022 are not necessarily indicative of the results to be expected for the full year due to seasonal variations in operating results and other factors. Unless the context indicates otherwise, the terms “we,” “our,” and “us” used in this report refer to KB Home, a Delaware corporation, and its subsidiaries. Impact of COVID-19 Pandemic on Consolidated Financial Statements. The 2019 coronavirus disease (“COVID-19”) pandemic and related responses by public health and governmental authorities to contain and combat the outbreak and spread (“COVID-19 control responses”) have adversely affected many economic sectors, significantly disrupted the global supply chain and fueled producer price and consumer inflation. Our business was impacted by these issues during the three months ended February 28, 2022. We experienced, among other things, ongoing construction services availability constraints, supply chain bottlenecks and rising and volatile raw and other building material prices amid uneven availability, particularly for lumber. In addition, we encountered delays related to state and municipal construction permitting, inspection and utility processes. All these factors, to varying degrees, extended our construction cycle times, delayed home deliveries and community openings and raised our costs in the 2022 first quarter. They could also negatively impact our growth, margins and financial results in future periods, as could additional significant COVID-19-related disruptions, if they emerge. At the same time, we continue to experience strong demand for our products and believe we are well-positioned to operate effectively through the present environment. Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Cash and Cash Equivalents. We consider all highly liquid short-term investments purchased with an original maturity of three months or less to be cash equivalents. Our cash equivalents totaled $15.3 million at February 28, 2022 and $15.4 million at November 30, 2021. At February 28, 2022 and November 30, 2021, the majority of our cash and cash equivalents was invested in interest-bearing bank deposit accounts. Comprehensive Income. Our comprehensive income was $134.3 million for the three months ended February 28, 2022 and $97.1 million for the three months ended February 28, 2021. Our comprehensive income for each of the three-month periods ended February 28, 2022 and 2021 was equal to our net income for the respective periods. Adoption of New Accounting Pronouncement . In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”), which simplifies the accounting for income taxes, eliminates certain exceptions within Accounting Standards Codification Topic 740, “Income Taxes” (“ASC 740”), and clarifies certain aspects of ASC 740 to promote consistency among reporting entities. Our adoption of ASU 2019-12, effective December 1, 2021, did not have a material impact on our consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted . In March 2020, the FASB issued Accounting Standards Update No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”), which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued because of reference rate reform. The guidance was effective beginning March 12, 2020 and can be applied prospectively through December 31, 2022. In January 2021, the FASB issued Accounting Standards Update No. 2021-01, “Reference Rate Reform (Topic 848): Scope” (“ASU 2021-01”), which |
Segment Information
Segment Information | 3 Months Ended |
Feb. 28, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We have identified five operating reporting segments, comprised of four homebuilding reporting segments and one financial services reporting segment. As of February 28, 2022, our homebuilding reporting segments conducted ongoing operations in the following states: West Coast: California, Idaho and Washington Southwest: Arizona and Nevada Central: Colorado and Texas Southeast: Florida and North Carolina Our homebuilding reporting segments are engaged in the acquisition and development of land primarily for residential purposes and offer a wide variety of homes that are designed to appeal to first-time, first move-up and active adult homebuyers. Our homebuilding operations generate most of their revenues from the delivery of completed homes to homebuyers. They also earn revenues from the sale of land. Our financial services reporting segment offers property and casualty insurance and, in certain instances, earthquake, flood and personal property insurance to our homebuyers in the same markets as our homebuilding reporting segments, and provides title services in the majority of our markets located within our Southwest, Central and Southeast homebuilding reporting segments. Our financial services reporting segment earns revenues primarily from insurance commissions and from the provision of title services. We offer mortgage banking services, including residential consumer mortgage loan (“mortgage loan”) originations, to our homebuyers indirectly through KBHS Home Loans, LLC (“KBHS”), our unconsolidated joint venture with GR Alliance Ventures, LLC (“GR Alliance”). We and GR Alliance each have a 50.0% ownership interest, with GR Alliance providing management oversight of KBHS’ operations. Our reporting segments follow the same accounting policies used for our consolidated financial statements. The results of each reporting segment are not necessarily indicative of the results that would have occurred had the segment been an independent, stand-alone entity during the periods presented, nor are they indicative of the results to be expected in future periods. The following tables present financial information relating to our homebuilding reporting segments (in thousands): Three Months Ended February 28, 2022 2021 Revenues: West Coast $ 658,874 $ 514,516 Southwest 209,767 187,685 Central 355,322 309,708 Southeast 170,191 126,099 Total $ 1,394,154 $ 1,138,008 Three Months Ended February 28, 2022 2021 Pretax income (loss): West Coast $ 110,034 $ 58,631 Southwest 35,905 33,055 Central 38,116 40,992 Southeast 20,266 12,115 Corporate and other (34,700) (29,742) Total $ 169,621 $ 115,051 Inventory impairment and land option contract abandonment charges: West Coast $ — $ 3,801 Southwest 109 128 Central 66 — Southeast — 135 Total $ 175 $ 4,064 February 28, November 30, Assets: West Coast $ 2,704,711 $ 2,520,374 Southwest 997,514 938,300 Central 1,283,385 1,168,242 Southeast 740,145 684,752 Corporate and other 421,198 480,048 Total $ 6,146,953 $ 5,791,716 |
Financial Services
Financial Services | 3 Months Ended |
Feb. 28, 2022 | |
Segment Reporting [Abstract] | |
Financial Services | Financial Services The following tables present financial information relating to our financial services reporting segment (in thousands): Three Months Ended February 28, 2022 2021 Revenues Insurance commissions $ 2,518 $ 1,848 Title services 2,101 1,882 Other 16 — Total 4,635 3,730 Expenses General and administrative (1,347) (1,200) Operating income 3,288 2,530 Equity in income of unconsolidated joint ventures 5,148 5,970 Pretax income $ 8,436 $ 8,500 February 28, November 30, Assets Cash and cash equivalents $ 2,049 $ 1,372 Receivables 1,810 2,166 Investments in unconsolidated joint ventures 12,415 16,317 Other assets (a) 25,100 24,347 Total assets $ 41,374 $ 44,202 Liabilities Accounts payable and accrued expenses $ 2,808 $ 2,685 Total liabilities $ 2,808 $ 2,685 (a) Other assets at February 28, 2022 and November 30, 2021 included $24.9 million and $24.1 million, respectively, of contract assets for estimated future renewal commissions. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Feb. 28, 2022 | |
Earnings Per Share, Basic and Diluted [Abstract] | |
Earnings Per Share | Earnings Per Share Basic and diluted earnings per share were calculated as follows (in thousands, except per share amounts): Three Months Ended February 28, 2022 2021 Numerator: Net income $ 134,257 $ 97,051 Less: Distributed earnings allocated to nonvested restricted stock (65) (63) Less: Undistributed earnings allocated to nonvested restricted stock (584) (381) Numerator for basic earnings per share 133,608 96,607 Effect of dilutive securities: Add: Undistributed earnings allocated to nonvested restricted stock 584 381 Less: Undistributed earnings reallocated to nonvested restricted stock (566) (368) Numerator for diluted earnings per share $ 133,626 $ 96,620 Denominator: Weighted average shares outstanding — basic 88,285 91,716 Effect of dilutive securities: Share-based payments 2,782 3,187 Weighted average shares outstanding — diluted 91,067 94,903 Basic earnings per share $ 1.51 $ 1.05 Diluted earnings per share $ 1.47 $ 1.02 We compute earnings per share using the two-class method, which is an allocation of earnings between the holders of common stock and a company’s participating security holders. Our outstanding nonvested shares of restricted stock contain non-forfeitable rights to dividends and, therefore, are considered participating securities for purposes of computing earnings per share pursuant to the two-class method. We had no other participating securities at February 28, 2022 or 2021. For the three-month periods ended February 28, 2022 and 2021, no outstanding stock options were excluded from the diluted earnings per share calculations. Contingently issuable shares associated with outstanding performance-based |
Receivables
Receivables | 3 Months Ended |
Feb. 28, 2022 | |
Receivables [Abstract] | |
Receivables | ReceivablesReceivables consisted of the following (in thousands): February 28, November 30, Due from utility companies, improvement districts and municipalities $ 160,070 $ 151,284 Recoveries related to self-insurance and other legal claims 84,706 95,063 Refundable deposits and bonds 14,526 13,681 Other 58,923 49,359 Subtotal 318,225 309,387 Allowance for doubtful accounts (5,109) (5,196) Total $ 313,116 $ 304,191 |
Inventories
Inventories | 3 Months Ended |
Feb. 28, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in thousands): February 28, November 30, Homes completed or under construction $ 2,369,054 $ 2,103,038 Land under development 2,828,779 2,699,791 Total $ 5,197,833 $ 4,802,829 Land under development at February 28, 2022 and November 30, 2021 included land held for future development or sale of $52.9 million and $45.2 million, respectively. Interest is capitalized to inventories while the related communities or land parcels are being actively developed and until homes are completed or the land is available for immediate sale. Capitalized interest is amortized to construction and land costs as the related inventories are delivered to homebuyers or land buyers (as applicable). In the case of land held for future development and land held for sale, applicable interest is expensed as incurred. Our interest costs were as follows (in thousands): Three Months Ended February 28, 2022 2021 Capitalized interest at beginning of period $ 161,119 $ 190,113 Interest incurred 28,303 31,092 Interest amortized to construction and land costs (a) (29,773) (32,650) Capitalized interest at end of period $ 159,649 $ 188,555 (a) For the three months ended February 28, 2021, interest amortized to construction and land costs included a nominal amount related to land sales during the period. |
Inventory Impairments and Land
Inventory Impairments and Land Option Contract Abandonments | 3 Months Ended |
Feb. 28, 2022 | |
Inventory Impairments and Land Option Contract Abandonments [Abstract] | |
Inventory Impairments and Land Option Contract Abandonments | Inventory Impairments and Land Option Contract AbandonmentsEach community or land parcel in our owned inventory is assessed on a quarterly basis to determine if indicators of potential impairment exist. We record an inventory impairment charge on a community or land parcel that is active or held for future development when indicators of potential impairment exist and the carrying value of the real estate asset is greater than the undiscounted future net cash flows the asset is expected to generate. These real estate assets are written down to fair value, which is primarily determined based on the estimated future net cash flows discounted for inherent risk associated with each such asset, or other valuation techniques. We record an inventory impairment charge on land held for sale when the carrying value of a land parcel is greater than its fair value. These real estate assets are written down to fair value, less associated costs to sell. The estimated fair values of such assets are generally based on bona fide letters of intent from outside parties, executed sales contracts, broker quotes or similar information. We evaluated one active community for recoverability as of February 28, 2022 with a carrying value of $6.6 million. As of November 30, 2021, no active communities or land parcels were evaluated for recoverability. In addition, we evaluated land held for future development for recoverability as of both February 28, 2022 and November 30, 2021. Based on the results of our evaluations, we recognized no inventory impairment charges for the three months ended February 28, 2022 and $3.6 million of such charges for the three months ended February 28, 2021. The inventory impairment charges for the 2021 first quarter reflected our decisions to make changes in our operational strategies aimed at more quickly monetizing our investment in certain communities by accelerating the overall pace for selling, building and delivering homes therein, including communities on land previously held for future development. The following table summarizes significant quantitative unobservable inputs we utilized in our fair value measurements with respect to the impaired communities written down to fair value: Three Months Ended Unobservable Input February 28, 2021 Average selling price $471,000 Deliveries per month 5 Discount rate 19% As of February 28, 2022, the aggregate carrying value of our inventory that had been impacted by inventory impairment charges was $90.6 million, representing seven communities and various other land parcels. As of November 30, 2021, the aggregate carrying value of our inventory that had been impacted by inventory impairment charges was $87.7 million, representing 11 communities and various other land parcels. Our inventory controlled under land option contracts and other similar contracts is assessed on a quarterly basis to determine whether it continues to meet our investment return standards. When a decision is made not to exercise certain land option contracts and other similar contracts due to market conditions and/or changes in our marketing strategy, we write off the related inventory costs, including non-refundable deposits and unrecoverable pre-acquisition costs. Based on the results of our assessments, we recognized land option contract abandonment charges of $.2 million for the three months ended February 28, 2022 and $.4 million for the three months ended February 28, 2021. Due to the judgment and assumptions applied in our inventory impairment and land option contract abandonment assessment processes, and in our estimations of the remaining operating lives of our inventory assets and the realization of our inventory balances, particularly as to land held for future development, it is possible that actual results could differ substantially from those estimated. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Feb. 28, 2022 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities Unconsolidated Joint Ventures. We participate in joint ventures from time to time that conduct land acquisition, land development and/or other homebuilding activities in various markets where our homebuilding operations are located. Our investments in these joint ventures may create a variable interest in a variable interest entity (“VIE”), depending on the contractual terms of the arrangement. We analyze our joint ventures under the variable interest model to determine whether they are VIEs and, if so, whether we are the primary beneficiary. Based on our analyses, we determined that one of our joint ventures at February 28, 2022 and November 30, 2021 was a VIE, but we were not the primary beneficiary of the VIE. Therefore, all of our joint ventures at February 28, 2022 and November 30, 2021 were unconsolidated and accounted for under the equity method because we did not have a controlling financial interest. Land Option Contracts and Other Similar Contracts. In the ordinary course of our business, we enter into land option contracts and other similar contracts with third parties and unconsolidated entities to acquire rights to land for the construction of homes. Under these contracts, we typically make a specified option payment or earnest money deposit in consideration for the right to purchase land in the future, usually at a predetermined price. We analyze each of our land option contracts and other similar contracts under the variable interest model to determine whether the land seller is a VIE and, if so, whether we are the primary beneficiary. Although we do not have legal title to the underlying land, we are required to consolidate a VIE if we are the primary beneficiary. As a result of our analyses, we determined that as of February 28, 2022 and November 30, 2021, we were not the primary beneficiary of any VIEs from which we have acquired rights to land under land option contracts and other similar contracts. We perform ongoing reassessments of whether we are the primary beneficiary of a VIE. The following table presents a summary of our interests in land option contracts and other similar contracts (in thousands): February 28, 2022 November 30, 2021 Cash Aggregate Cash Aggregate Unconsolidated VIEs $ 28,979 $ 914,780 $ 38,333 $ 1,093,669 Other land option contracts and other similar contracts 35,652 816,672 36,176 766,182 Total $ 64,631 $ 1,731,452 $ 74,509 $ 1,859,851 In addition to the cash deposits presented in the table above, our exposure to loss related to our land option contracts and other similar contracts with third parties and unconsolidated entities consisted of pre-acquisition costs of $37.9 million at February 28, 2022 and $38.1 million at November 30, 2021. These pre-acquisition costs and cash deposits were included in inventories in our consolidated balance sheets. |
Investments in Unconsolidated J
Investments in Unconsolidated Joint Ventures | 3 Months Ended |
Feb. 28, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Joint Ventures | Investments in Unconsolidated Joint Ventures We have investments in unconsolidated joint ventures that conduct land acquisition, land development and/or other homebuilding activities in various markets where our homebuilding operations are located. We and our unconsolidated joint venture partners make initial and/or ongoing capital contributions to these unconsolidated joint ventures, typically on a pro rata basis, according to our respective equity interests. The obligations to make capital contributions are governed by each such unconsolidated joint venture’s respective operating agreement and related governing documents. As of both February 28, 2022 and November 30, 2021, we had investments in six unconsolidated joint ventures. The following table presents combined condensed information from the statements of operations for our unconsolidated joint ventures (in thousands): Three Months Ended February 28, 2022 2021 Revenues $ 2,850 $ 9,691 Construction and land costs (2,299) (8,125) Other expense, net (430) (879) Income $ 121 $ 687 The lower combined revenues and construction and land costs for the three months ended February 28, 2022, as compared to the year-earlier period, mainly reflected a decrease in the number of homes delivered from an unconsolidated joint venture in California that delivered its last home in the 2021 second quarter. The following table presents combined condensed balance sheet information for our unconsolidated joint ventures (in thousands): February 28, November 30, Assets Cash $ 21,281 $ 15,731 Receivables 872 795 Inventories 67,472 64,034 Other assets 47 50 Total assets $ 89,672 $ 80,610 Liabilities and equity Accounts payable and other liabilities $ 16,135 $ 12,285 Equity 73,537 68,325 Total liabilities and equity $ 89,672 $ 80,610 |
Other Assets
Other Assets | 3 Months Ended |
Feb. 28, 2022 | |
Other Assets [Abstract] | |
Other Assets | Other Assets Other assets consisted of the following (in thousands): February 28, November 30, Cash surrender value of corporate-owned life insurance contracts $ 66,672 $ 68,748 Lease right-of-use assets 26,314 27,508 Prepaid expenses 6,600 6,344 Debt issuance costs associated with unsecured revolving credit facility, net 5,130 1,553 Total $ 104,716 $ 104,153 |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 3 Months Ended |
Feb. 28, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Liabilities | Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consisted of the following (in thousands): February 28, November 30, Self-insurance and other legal liabilities $ 233,704 $ 239,129 Employee compensation and related benefits 131,042 192,549 Warranty liability 97,466 96,153 Customer deposits 83,246 71,032 Federal and state taxes payable 47,388 8,290 Accrued interest payable 32,160 24,554 Lease liabilities 28,113 29,279 Inventory-related obligations (a) 20,664 36,146 Real estate and business taxes 15,917 17,563 Other 44,552 42,210 Total $ 734,252 $ 756,905 (a) Represents liabilities for financing arrangements discussed in Note 8 – Variable Interest Entities, as well as liabilities for fixed or determinable amounts associated with tax increment financing entity (“TIFE”) assessments. As homes are delivered, our obligation to pay the remaining TIFE assessments associated with each underlying lot is transferred to |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
Feb. 28, 2022 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | Leases We lease certain property and equipment for use in our operations. We recognize lease expense for these leases generally on a straight-line basis over the lease term and combine lease and non-lease components for all leases. Lease right-of-use assets and lease liabilities are recorded on our consolidated balance sheets for leases with an expected term at the commencement date of more than 12 months. Lease expense is included in selling, general and administrative expenses in our consolidated statements of operations and includes costs for leases with terms of more than 12 months as well as short-term leases with terms of 12 months or less. Our total lease expense for each of the three-month periods ended February 28, 2022 and 2021 was $4.3 million , and included short-term lease costs of $1.2 million and $1.3 million, respectively. Variable lease costs and external sublease income for the three-month periods ended February 28, 2022 and 2021 were immaterial. The following table presents our lease right-of-use assets and lease liabilities (dollars in thousands): February 28, November 30, Lease right-of-use assets (a) $ 26,485 $ 27,693 Lease liabilities (b) 28,302 29,481 (a) Represents lease right-of-use assets within our homebuilding operations and financial services operations of $26.3 million and $.2 million, respectively, at February 28, 2022, and $27.5 million and $.2 million, respectively, at November 30, 2021. (b) Represents lease liabilities within our homebuilding operations and financial services operations of $28.1 million and $.2 million, respectively, at February 28, 2022, and $29.3 million and $.2 million, respectively, at November 30, 2021. |
Income Taxes
Income Taxes | 3 Months Ended |
Feb. 28, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income Tax Expense. Our income tax expense and effective tax rates were as follows (dollars in thousands): Three Months Ended February 28, 2022 2021 Income tax expense $ 43,800 $ 26,500 Effective tax rate 24.6 % 21.4 % Our income tax expense and effective tax rate for the three months ended February 28, 2022 reflected the favorable impacts of $2.2 million of excess tax benefits related to stock-based compensation and $.2 million of federal tax credits we earned primarily from building energy-efficient homes, partially offset by $1.7 million of non-deductible executive compensation expense under Internal Revenue Code Section 162(m). Our income tax expense and effective tax rate for the three months ended February 28, 2021 reflected the favorable impacts of $3.5 million of excess tax benefits related to stock-based compensation and $2.7 million of federal tax credits we earned primarily from building energy-efficient homes, partly offset by $1.4 million of non-deductible executive compensation expense. The federal energy tax credits for the three months ended February 28, 2022 and 2021 resulted from legislation enacted in December 2020 and earlier periods. The federal tax credit for building new energy-efficient homes expired for homes delivered after December 31, 2021. The Coronavirus Aid, Relief, and Economic Security Act, enacted on March 27, 2020, provided an Employee Retention Credit (“ERC”), which is a refundable payroll tax credit that encouraged businesses to keep employees on the payroll during the COVID-19 pandemic. Eligible employers could qualify for up to $5,000 of credit for each employee based on certain wages paid after March 12, 2020 and before January 1, 2021. Based on our evaluation of this provision and the significant pandemic-related impacts on our operations in 2020, we recognized an ERC of $4.3 million as an offset to payroll tax expenses within selling, general and administrative expenses in our consolidated statements of operations upon filing for the refund in the 2021 first quarter. We received the refund in the 2021 fourth quarter. In June 2020, California enacted tax legislation that approved the suspension of California net operating loss (“NOL”) deductions for tax years 2020, 2021 and 2022. On February 9, 2022, California enacted legislation restoring the NOL deduction for tax years beginning on or after January 1, 2022, which would be effective for our 2023 fiscal year. Although the suspension of California NOL deductions did not have an impact on our income tax expense for the three months ended February 28, 2022, it contributed to the year-over-year increase in the amount of taxes we paid in this period. Deferred Tax Asset Valuation Allowance. We evaluate our deferred tax assets quarterly to determine if adjustments to our valuation allowance are required based on the consideration of all available positive and negative evidence using a “more likely than not” standard with respect to whether deferred tax assets will be realized. Our evaluation considers, among other factors, our historical operating results, our expectation of future profitability, the duration of the applicable statutory carryforward periods, and conditions in the housing market and the broader economy. The ultimate realization of our deferred tax assets depends primarily on our ability to generate future taxable income during the periods in which the related deferred tax assets become deductible. The value of our deferred tax assets depends on applicable income tax rates. Our deferred tax assets of $190.4 million as of February 28, 2022 and $194.8 million as of November 30, 2021 were each partly offset by a valuation allowance of $17.4 million. The deferred tax asset valuation allowances as of February 28, 2022 and November 30, 2021 were primarily related to certain state NOLs that had not met the “more likely than not” realization standard at those dates. Based on the evaluation of our deferred tax assets as of February 28, 2022, we determined that most of our deferred tax assets would be realized. Therefore, no adjustments to our deferred tax valuation allowance were needed for the three months ended February 28, 2022. We will continue to evaluate both the positive and negative evidence on a quarterly basis in determining the need for a valuation allowance with respect to our deferred tax assets. The accounting for deferred tax assets is based upon estimates of future results. Changes in positive and negative evidence, including differences between estimated and actual results, could result in changes in the valuation of our deferred tax assets that could have a material impact on our consolidated financial statements. Changes in existing federal and state tax laws and corporate income tax rates could also affect actual tax results and the realization of deferred tax assets over time. |
Notes Payable
Notes Payable | 3 Months Ended |
Feb. 28, 2022 | |
Debt Disclosure [Abstract] | |
Notes Payable | Notes Payable Notes payable consisted of the following (in thousands): February 28, November 30, Unsecured revolving credit facility $ 250,000 $ — Mortgages and land contracts due to land sellers and other loans 4,927 5,327 7.50% Senior notes due September 15, 2022 349,635 349,471 7.625% Senior notes due May 15, 2023 350,661 350,788 6.875% Senior notes due June 15, 2027 297,267 297,161 4.80% Senior notes due November 15, 2029 296,984 296,905 4.00% Senior notes due June 15, 2031 385,474 385,375 Total $ 1,934,948 $ 1,685,027 The carrying amounts of our senior notes listed above are net of unamortized debt issuance costs and premiums, which totaled $10.0 million at February 28, 2022 and $10.3 million at November 30, 2021. Unsecured Revolving Credit Facility. On February 18, 2022, we entered into an amendment to our unsecured revolving credit facility with various banks (“Credit Facility”) that increased its borrowing capacity from $800.0 million to $1.09 billion and extended its maturity from October 7, 2023 to February 18, 2027. The Credit Facility contains an uncommitted accordion feature under which its aggregate principal amount of available loans can be increased to a maximum of $1.29 billion under certain conditions, including obtaining additional bank commitments. The Credit Facility also contains a sublimit of $250.0 million for the issuance of letters of credit. Interest on amounts borrowed under the Credit Facility accrues at a rate based on either a Secured Overnight Financing Rate (“SOFR”) or a base rate, plus a spread that depends on our consolidated leverage ratio (“Leverage Ratio”), as defined under the Credit Facility. Interest is payable quarterly (base rate) or each month or three months (adjusted term SOFR). The Credit Facility also requires the payment of a commitment fee at a per annum rate ranging from .15% to .35% of the unused commitment, based on our Leverage Ratio. Under the terms of the Credit Facility, we are required, among other things, to maintain compliance with various covenants, including financial covenants relating to our consolidated tangible net worth, Leverage Ratio, and either a consolidated interest coverage ratio (“Interest Coverage Ratio”) or minimum level of liquidity, each as defined therein. The amount of the Credit Facility available for cash borrowings and the issuance of letters of credit depends on the total cash borrowings and letters of credit outstanding under the Credit Facility and the maximum available amount under the terms of the Credit Facility. As of February 28, 2022, we had $250.0 million of cash borrowings and $8.6 million of letters of credit outstanding under the Credit Facility. Therefore, as of February 28, 2022, we had $831.4 million available for cash borrowings under the Credit Facility, with up to $241.4 million of that amount available for the issuance of letters of credit. Letter of Credit Facility. We maintain an unsecured letter of credit agreement with a financial institution (“LOC Facility”) to obtain letters of credit from time to time in the ordinary course of operating our business. Under the LOC Facility, which expires on February 13, 2025, we may issue up to $75.0 million of letters of credit. As of February 28, 2022 and November 30, 2021, we had letters of credit outstanding under the LOC Facility of $36.7 million and $34.6 million, respectively. Mortgages and Land Contracts Due to Land Sellers and Other Loans. As of February 28, 2022, inventories having a carrying value of $18.5 million were pledged to collateralize mortgages and land contracts due to land sellers and other loans. Senior Notes. All the senior notes outstanding at February 28, 2022 and November 30, 2021 represent senior unsecured obligations that are guaranteed by certain of our subsidiaries and rank equally in right of payment with all of our and our guarantor subsidiaries’ existing unsecured and unsubordinated indebtedness. All of our senior notes were issued in underwritten public offerings. Interest on each of these senior notes is payable semi-annually. The indenture governing our senior notes does not contain any financial covenants. Subject to specified exceptions, the indenture contains certain restrictive covenants that, among other things, limit our ability to incur secured indebtedness, or engage in sale and leaseback transactions involving property above a certain specified value. In addition, the indenture contains certain limitations related to mergers, consolidations, and sales of assets. As of February 28, 2022, we were in compliance with the applicable terms of all of our covenants and other requirements under the Credit Facility, the senior notes, the indenture, and the mortgages and land contracts due to land sellers and other loans. Our ability to access the Credit Facility for cash borrowings and letters of credit and our ability to secure future debt financing depend, in part, on our ability to remain in such compliance. As of February 28, 2022, principal payments on senior notes, mortgages and land contracts due to land sellers and other loans are due during each year ending November 30 as follows: 2022 – $353.2 million; 2023 – $351.7 million; 2024 – $0; 2025 – $0; 2026 – $0; and thereafter – $990.0 million. |
Fair Value Disclosures
Fair Value Disclosures | 3 Months Ended |
Feb. 28, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures Fair value measurements of assets and liabilities are categorized based on the following hierarchy: Level 1 Fair value determined based on quoted prices in active markets for identical assets or liabilities. Level 2 Fair value determined using significant observable inputs, such as quoted prices for similar assets or liabilities or quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs that are derived principally from or corroborated by observable market data, by correlation or other means. Level 3 Fair value determined using significant unobservable inputs, such as pricing models, discounted cash flows, or similar techniques. Fair value measurements are used for inventories on a nonrecurring basis when events and circumstances indicate that their carrying value is not recoverable. The following table presents the fair value hierarchy and our assets measured at fair value on a nonrecurring basis for the three months ended February 28, 2022 and the year ended November 30, 2021 (in thousands): February 28, 2022 November 30, 2021 Description Fair Value Hierarchy Pre-Impairment Value Inventory Impairment Charges Fair Value (a) Pre-Impairment Value Inventory Impairment Charges Fair Value (a) Inventories Level 3 $ — $ — $ — $ 27,923 $ (9,903) $ 18,020 (a) Amounts represent the aggregate fair value for real estate assets impacted by inventory impairment charges during the applicable period, as of the date that the fair value measurements were made. The carrying value for these real estate assets may have subsequently increased or decreased from the fair value reflected due to activity that has occurred since the measurement date. The fair values for inventories that were determined using Level 3 inputs were based on the estimated future net cash flows discounted for inherent risk associated with each underlying asset. The following table presents the fair value hierarchy, carrying value and estimated fair value of our financial instruments, except those for which the carrying values approximate fair values (in thousands): February 28, 2022 November 30, 2021 Description Fair Value Carrying Estimated Carrying Estimated Financial Liabilities: Senior notes Level 2 $ 1,680,021 $ 1,726,050 $ 1,679,700 $ 1,796,500 (a) The carrying values for the senior notes, as presented, include unamortized debt issuance costs. Debt issuance costs are not factored into the estimated fair values of these notes. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Feb. 28, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments and contingencies include typical obligations of homebuilders for the completion of contracts and those incurred in the ordinary course of business. Warranty . We provide a limited warranty on all of our homes. The specific terms and conditions of our limited warranty program vary depending upon the markets in which we do business. We generally provide a structural warranty of 10 years, a warranty on electrical, heating, cooling, plumbing and certain other building systems each varying from two We estimate the costs that may be incurred under each limited warranty and record a liability in the amount of such costs at the time the revenue associated with the sale of each home is recognized. Our primary assumption in estimating the amounts we accrue for warranty costs is that historical claims experience is a strong indicator of future claims experience. Factors that affect our warranty liability include the number of homes delivered, historical and anticipated rates of warranty claims, and cost per claim. We periodically assess the adequacy of our accrued warranty liability, which is included in accrued expenses and other liabilities in our consolidated balance sheets, and adjust the amount as necessary based on our assessment. Our assessment includes the review of our actual warranty costs incurred to identify trends and changes in our warranty claims experience, and considers our home construction quality and customer service initiatives and outside events. While we believe the warranty liability currently reflected in our consolidated balance sheets to be adequate, unanticipated changes or developments in the legal environment, local weather, land or environmental conditions, quality of materials or methods used in the construction of homes or customer service practices and/or our warranty claims experience could have a significant impact on our actual warranty costs in future periods and such amounts could differ significantly from our current estimates. The changes in our warranty liability were as follows (in thousands): Three Months Ended February 28, 2022 2021 Balance at beginning of period $ 96,153 $ 91,646 Warranties issued 7,890 7,457 Payments (6,577) (6,416) Balance at end of period $ 97,466 $ 92,687 Guarantees. In the normal course of our business, we issue certain representations, warranties and guarantees related to our home sales and land sales. Based on historical experience, we do not believe any potential liability with respect to these representations, warranties or guarantees would be material to our consolidated financial statements. Self-Insurance. We maintain, and require the majority of our independent contractors to maintain, general liability insurance (including construction defect and bodily injury coverage) and workers’ compensation insurance. These insurance policies protect us against a portion of our risk of loss from claims related to our homebuilding activities, subject to certain self-insured retentions, deductibles and other coverage limits. We also maintain certain other insurance policies. Costs associated with our self-insurance programs are included in selling, general and administrative expenses. In Arizona, California, Colorado and Nevada, our contractors’ general liability insurance primarily takes the form of a wrap-up policy under a program where eligible independent contractors are enrolled as insureds on each community. Enrolled contractors contribute toward the cost of the insurance and agree to pay a contractual amount in the future if there is a claim related to their work. To the extent provided under the wrap-up program, we absorb the enrolled contractors’ general liability associated with the work performed on our homes within the applicable community as part of our overall general liability insurance and our self-insurance. We self-insure a portion of our overall risk through the use of a captive insurance subsidiary, which provides coverage for our exposure to construction defect, bodily injury and property damage claims and related litigation or regulatory actions, up to certain limits. Our self-insurance liability generally covers the costs of settlements and/or repairs, if any, as well as our costs to defend and resolve the following types of claims: • Construction defect : Construction defect claims, which represent the largest component of our self-insurance liability, typically originate through a legal or regulatory process rather than directly by a homeowner and involve the alleged occurrence of a condition affecting two or more homes within the same community, or they involve a common area or homeowners’ association property within a community. These claims typically involve higher costs to resolve than individual homeowner warranty claims, and the rate of claims is highly variable. • Bodily injury : Bodily injury claims typically involve individuals (other than our employees) who claim they were injured while on our property or as a result of our operations. • Property damage : Property damage claims generally involve claims by third parties for alleged damage to real or personal property as a result of our operations. Such claims may occasionally include those made against us by owners of property located near our communities. Our self-insurance liability at each reporting date represents the estimated costs of reported claims, claims incurred but not yet reported, and claim adjustment expenses. The amount of our self-insurance liability is based on an analysis performed by a third-party actuary that uses our historical claim and expense data, as well as industry data to estimate these overall costs. Key assumptions used in developing these estimates include claim frequencies, severities and resolution patterns, which can occur over an extended period of time. These estimates are subject to variability due to the length of time between the delivery of a home to a homebuyer and when a construction defect claim is made, and the ultimate resolution of such claim; uncertainties regarding such claims relative to our markets and the types of products we build; and legal or regulatory actions and/or interpretations, among other factors. Due to the degree of judgment involved and the potential for variability in these underlying assumptions, our actual future costs could differ from those estimated. In addition, changes in the frequency and severity of reported claims and the estimates to resolve claims can impact the trends and assumptions used in the actuarial analysis, which could be material to our consolidated financial statements. Though state regulations vary, construction defect claims are reported and resolved over a long period of time, which can extend for 10 years or more. As a result, the majority of the estimated self-insurance liability based on the actuarial analysis relates to claims incurred but not yet reported. Therefore, adjustments related to individual existing claims generally do not significantly impact the overall estimated liability. Adjustments to our liabilities related to homes delivered in prior years are recorded in the period in which a change in our estimate occurs. Our self-insurance liability is presented on a gross basis for all periods without consideration of insurance recoveries and amounts we have paid on behalf of and expect to recover from other parties, if any. Estimated probable insurance and other recoveries of $57.0 million and $57.8 million are included in receivables in our consolidated balance sheets at February 28, 2022 and November 30, 2021, respectively. These self-insurance recoveries are principally based on actuarially determined amounts and depend on various factors, including, among other things, the above-described claim cost estimates, our insurance policy coverage limits for the applicable policy year(s), historical third-party recovery rates, insurance industry practices, the regulatory environment and legal precedent, and are subject to a high degree of variability from period to period. Because of the inherent uncertainty and variability in these assumptions, our actual insurance recoveries could differ significantly from amounts currently estimated. The changes in our self-insurance liability were as follows (in thousands): Three Months Ended February 28, 2022 2021 Balance at beginning of period $ 189,131 $ 194,180 Self-insurance provided 4,739 4,583 Payments (2,466) (5,500) Adjustments (a) (810) 182 Balance at end of period $ 190,594 $ 193,445 (a) Represents net changes in estimated probable recoveries related to self-insurance, which are recorded in receivables, to present our self-insurance liability on a gross basis. For most of our claims, there is no interaction between our warranty liability and self-insurance liability. Typically, if a matter is identified at its outset as either a warranty or self-insurance claim, it remains as such through its resolution. However, there can be instances of interaction between the liabilities, such as where individual homeowners in a community separately request warranty repairs to their homes to address a similar condition or issue and subsequently join together to initiate, or potentially initiate, a legal process with respect to that condition or issue and/or the repair work we have undertaken. In these instances, the claims and related repair work generally are initially covered by our warranty liability, and the costs associated with resolving the legal matter (including any additional repair work) are covered by our self-insurance liability. The payments we make in connection with claims and related repair work, whether covered within our warranty liability and/or our self-insurance liability, may be recovered from our insurers to the extent such payments exceed the self-insured retentions or deductibles under our general liability insurance policies. Also, in certain instances, in the course of resolving a claim, we pay amounts in advance of and/or on behalf of an independent contractor(s) or their insurer(s) and believe we will be reimbursed for such payments. Estimates of all such amounts, if any, are recorded as receivables in our consolidated balance sheets when any such recovery is considered probable. Florida Chapter 558 Actions . We and certain of our trade partners continue to receive claims from attorneys on behalf of individual owners of our homes and/or homeowners’ associations that allege, pursuant to Chapter 558 of the Florida Statutes, various construction defects, with most relating to stucco and water-intrusion issues. The claims primarily involve homes in our Jacksonville, Orlando, and Tampa operations. Under Chapter 558, homeowners must serve written notice of a construction defect(s) and provide the served construction and/or design contractor(s) with an opportunity to respond to the noticed issue(s) before they can file a lawsuit. Although we have resolved many of these claims without litigation, and a number of others have been resolved with applicable trade partners or their insurers covering the related costs, as of February 28, 2022, we had approximately 554 outstanding noticed claims, and some are scheduled for trial over the next few quarters and beyond. In addition, some of our trade partners’ insurers in some of these cases have informed us of their inability to continue to pay claims-related costs. At February 28, 2022, we had an accrual for our estimated probable loss for these matters and a receivable for estimated probable insurance recoveries. While it is reasonably possible that our loss could exceed the amount accrued and our recoveries could be less than the amount recorded, at this time, we are unable to estimate the total amount of the loss in excess of the accrued amount and/or associated with a shortfall in the recoveries that is reasonably possible. In addition, although we believe it is probable we will receive additional claims in future periods, we are unable to reasonably estimate the number of such claims or the amount or range of any potential losses associated with such claims as each of these is dependent on several factors, including the actions of third parties over which we have no control; the nature of any specific claims; and our evaluation of the particular facts surrounding each such claim. Townhome Community Construction Defect Claims. In the 2016 fourth quarter, we received claims from a homeowners association alleging there were construction defects, primarily involving roofing and stucco issues, at a completed townhome community in Northern California totaling approximately $25.0 million. At November 30, 2021, we had an accrual for our estimated probable loss in this matter and a receivable for estimated probable insurance recoveries that reflected the status of our investigation to such date. In February 2022, we reached a settlement with the homeowners association, agreeing to pay approximately $12.0 million, with a portion thereof to be covered by our direct insurer, plus an assignment of claims against a window manufacturer. The total amount of the settlement was covered within our previously established self-insurance accrual and had no material impact on our consolidated financial statements for the 2022 first quarter. Performance Bonds and Letters of Credit . We are often required to provide to various municipalities and other government agencies performance bonds and/or letters of credit to secure the completion of our projects and/or in support of obligations to build community improvements such as roads, sewers, water systems and other utilities, and to support similar development activities by certain of our unconsolidated joint ventures. At February 28, 2022, we had $1.15 billion of performance bonds and $45.3 million of letters of credit outstanding. At November 30, 2021, we had $1.11 billion of performance bonds and $43.2 million of letters of credit outstanding. If any such performance bonds or letters of credit are called, we would be obligated to reimburse the issuer of the performance bond or letter of credit. We do not believe that a material amount of any currently outstanding performance bonds or letters of credit will be called. Performance bonds do not have stated expiration dates. Rather, we are released from the performance bonds as the underlying performance is completed. The expiration dates of some letters of credit issued in connection with community improvements coincide with the expected completion dates of the related projects or obligations. Most letters of credit, however, are issued with an initial term of one year and are typically extended on a year-to-year basis until the related performance obligations are completed. Land Option Contracts and Other Similar Contracts . In the ordinary course of our business, we enter into land option contracts and other similar contracts to acquire rights to land for the construction of homes. At February 28, 2022, we had total cash deposits of $64.6 million to purchase land having an aggregate purchase price of $1.73 billion. Our land option contracts and other similar contracts generally do not contain provisions requiring our specific performance. |
Legal Matters
Legal Matters | 3 Months Ended |
Feb. 28, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters | Legal MattersWe are involved in litigation and regulatory proceedings incidental to our business that are in various procedural stages. We believe the accruals we have recorded for probable and reasonably estimable losses with respect to these proceedings are adequate and that, as of February 28, 2022, it was not reasonably possible that an additional material loss had been incurred in an amount in excess of the estimated amounts already recognized or disclosed in our consolidated financial statements. We evaluate our accruals for litigation and regulatory proceedings at least quarterly and, as appropriate, adjust them to reflect (a) the facts and circumstances known to us at the time, including information regarding negotiations, settlements, rulings and other relevant events and developments; (b) the advice and analyses of counsel; and (c) the assumptions and judgment of management. Similar factors and considerations are used in establishing new accruals for proceedings as to which losses have become probable and reasonably estimable at the time an evaluation is made. Our accruals for litigation and regulatory proceedings are presented on a gross basis without consideration of recoveries and amounts we have paid on behalf of and expect to recover from other parties, if any. Estimates of recoveries and amounts we have paid on behalf of and expect to recover from other parties, if any, are recorded as receivables when such recoveries are considered probable. Based on our experience, we believe the amounts that may be claimed or alleged against us in these proceedings are not a meaningful indicator of our potential liability. The outcome of any of these proceedings, including the defense and other litigation-related costs and expenses we may incur, however, is inherently uncertain and could differ significantly from the estimate reflected in a related accrual, if made. Therefore, it is possible that the ultimate outcome of any proceeding, if in excess of a related accrual or if an accrual had not been made, could be material to our consolidated financial statements. Pursuant to SEC rules, we will disclose any proceeding in which a governmental authority is a party and that arises under any federal, state or local provisions enacted or adopted regulating the discharge of materials into the environment or primarily for the purpose of protecting the environment only where we believe that such proceeding will result in monetary sanctions on us, exclusive of interest and costs, above $1.0 million or is otherwise material to our consolidated financial statements. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Feb. 28, 2022 | |
Equity [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity A summary of changes in stockholders’ equity is presented below (in thousands): Three Months Ended February 28, 2022 and 2021 Number of Shares Common Grantor Treasury Common Stock Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Grantor Stock Treasury Stock Total Stockholders’ Equity Balance at November 30, 2021 100,711 (6,705) (5,785) $ 100,711 $ 848,620 $ 2,379,364 $ (19,119) $ (72,718) $ (217,383) $ 3,019,475 Net income — — — — — 134,257 — — — 134,257 Dividends on common stock — — — — — (14,130) — — — (14,130) Stock awards — — 721 — (27,249) — — — 27,249 — Stock-based compensation — — — — 6,867 — — — — 6,867 Tax payments associated with stock-based compensation awards — — (320) — — — — — (12,153) (12,153) Balance at February 28, 2022 100,711 (6,705) (5,384) $ 100,711 $ 828,238 $ 2,499,491 $ (19,119) $ (72,718) $ (202,287) $ 3,134,316 Balance at November 30, 2020 99,869 (7,124) (1,107) $ 99,869 $ 824,306 $ 1,868,896 $ (22,276) $ (77,265) $ (27,761) $ 2,665,769 Cumulative effect of adoption of new accounting standard for credit losses — — — — — (226) — — — (226) Net income — — — — — 97,051 — — — 97,051 Dividends on common stock — — — — — (14,064) — — — (14,064) Employee stock options/other 173 — — 173 2,365 — — — — 2,538 Stock awards — 419 10 — (4,787) — — 4,547 240 — Stock-based compensation — — — — 5,572 — — — — 5,572 Tax payments associated with stock-based compensation awards — — (208) — — — — — (8,456) (8,456) Balance at February 28, 2021 100,042 (6,705) (1,305) $ 100,042 $ 827,456 $ 1,951,657 $ (22,276) $ (72,718) $ (35,977) $ 2,748,184 On February 17, 2022, the management development and compensation committee of our board of directors approved the payout of 674,677 shares of our common stock in connection with the vesting of PSUs that were granted to certain employees on October 4, 2018. The shares paid out under the PSUs reflected our achievement of certain performance measures that were based on cumulative earnings per share, average return on invested capital, and revenue growth relative to a peer group of high-production public homebuilding companies over the three-year period from December 1, 2018 through November 30, 2021. Of the shares of common stock paid out, 319,815 shares, or $12.2 million, were purchased by us in the 2022 first quarter to satisfy the recipients’ withholding taxes on the vesting of the PSUs. The shares purchased were not considered repurchases under the authorizations described below. As of February 28, 2022, we were authorized to repurchase 331,400 shares of our common stock under a board of directors approved share repurchase program. We did not repurchase any of our common stock under this program in the three months ended February 28, 2022. Unrelated to the share repurchase program, our board of directors authorized in 2014 the repurchase of not more than 680,000 shares of our outstanding common stock, and also authorized potential future grants of up to 680,000 stock payment awards under the KB Home 2014 Equity Incentive Plan (“2014 Plan”), in each case solely as necessary for director elections in respect of outstanding stock appreciation rights awards granted under our Non-Employee Directors Compensation Plan. The 2014 Plan was amended in April 2016. As of February 28, 2022, we have not repurchased any shares and no stock payment awards have been granted under the 2014 Plan, as amended, pursuant to the respective board of directors’ authorizations. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Feb. 28, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock Options. At both February 28, 2022 and November 30, 2021, we had 1,674,393 stock options outstanding and exercisable with a weighted average exercise price of $15.56. We have not granted any stock option awards since 2016. As of February 28, 2022, stock options outstanding and stock options exercisable each had a weighted average remaining contractual life of 3.6 years. As all outstanding stock options have been fully vested since 2019, there was no unrecognized compensation expense related to stock option awards at February 28, 2022 and no stock-based compensation expense associated with stock options for the three-month periods ended February 28, 2022 and 2021. Stock options outstanding and stock options exercisable each had an aggregate intrinsic value of $38.6 million at February 28, 2022. (The intrinsic value of a stock option is the amount by which the market value of a share of the underlying common stock exceeds the exercise price of the stock option.) |
Subsequent Events
Subsequent Events | Apr. 07, 2022 |
Subsequent Events [Abstract] | |
Subsequent Events | 21. Subsequent Event On April 7, 2022, our board of directors authorized us to repurchase up to $300.0 million of our outstanding common stock. This authorization replaced a prior board of directors authorization, as discussed in Note 18 – Stockholders’ Equity, which had 331,400 shares remaining for repurchase. Repurchases under the new authorization may occur periodically through open market purchases, privately negotiated transactions or otherwise, with the timing and amount at management’s discretion and dependent on market, business and other conditions. This share repurchase authorization will continue in effect until fully used or earlier terminated or suspended by our board of directors, and does not obligate us to purchase any shares. As of the date of this report, we have not repurchased any shares under this authorization. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Feb. 28, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Cash and Cash Equivalents and Restricted Cash | We consider all highly liquid short-term investments purchased with an original maturity of three months or less to be cash equivalents. Our cash equivalents totaled $15.3 million at February 28, 2022 and $15.4 million at November 30, 2021. At February 28, 2022 and November 30, 2021, the majority of our cash and cash equivalents was invested in interest-bearing bank deposit accounts. |
Comprehensive Income | Our comprehensive income was $134.3 million for the three months ended February 28, 2022 and $97.1 million for the three months ended February 28, 2021. Our comprehensive income for each of the three-month periods ended February 28, 2022 and 2021 was equal to our net income for the respective periods. |
Adoption of New Accounting Pronouncement and Recent Accounting Pronouncements | Adoption of New Accounting Pronouncement . In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”), which simplifies the accounting for income taxes, eliminates certain exceptions within Accounting Standards Codification Topic 740, “Income Taxes” (“ASC 740”), and clarifies certain aspects of ASC 740 to promote consistency among reporting entities. Our adoption of ASU 2019-12, effective December 1, 2021, did not have a material impact on our consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted . In March 2020, the FASB issued Accounting Standards Update No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”), which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued because of reference rate reform. The guidance was effective beginning March 12, 2020 and can be applied prospectively through December 31, 2022. In January 2021, the FASB issued Accounting Standards Update No. 2021-01, “Reference Rate Reform (Topic 848): Scope” (“ASU 2021-01”), which |
Segment Reporting (ASC 280) | We have identified five operating reporting segments, comprised of four homebuilding reporting segments and one financial services reporting segment. As of February 28, 2022, our homebuilding reporting segments conducted ongoing operations in the following states: West Coast: California, Idaho and Washington Southwest: Arizona and Nevada Central: Colorado and Texas Southeast: Florida and North Carolina Our homebuilding reporting segments are engaged in the acquisition and development of land primarily for residential purposes and offer a wide variety of homes that are designed to appeal to first-time, first move-up and active adult homebuyers. Our homebuilding operations generate most of their revenues from the delivery of completed homes to homebuyers. They also earn revenues from the sale of land. Our financial services reporting segment offers property and casualty insurance and, in certain instances, earthquake, flood and personal property insurance to our homebuyers in the same markets as our homebuilding reporting segments, and provides title services in the majority of our markets located within our Southwest, Central and Southeast homebuilding reporting segments. Our financial services reporting segment earns revenues primarily from insurance commissions and from the provision of title services. We offer mortgage banking services, including residential consumer mortgage loan (“mortgage loan”) originations, to our homebuyers indirectly through KBHS Home Loans, LLC (“KBHS”), our unconsolidated joint venture with GR Alliance Ventures, LLC (“GR Alliance”). We and GR Alliance each have a 50.0% ownership interest, with GR Alliance providing management oversight of KBHS’ operations. Our reporting segments follow the same accounting policies used for our consolidated financial statements. The results of each reporting segment are not necessarily indicative of the results that would have occurred had the segment been an independent, stand-alone entity during the periods presented, nor are they indicative of the results to be expected in future periods. |
Earnings Per Share (ASC 260) | We compute earnings per share using the two-class method, which is an allocation of earnings between the holders of common stock and a company’s participating security holders. Our outstanding nonvested shares of restricted stock contain non-forfeitable rights to dividends and, therefore, are considered participating securities for purposes of computing earnings per share pursuant to the two-class method. We had no other participating securities at February 28, 2022 or 2021. |
Property, Plant and Equipment (ASC 360) | Each community or land parcel in our owned inventory is assessed on a quarterly basis to determine if indicators of potential impairment exist. We record an inventory impairment charge on a community or land parcel that is active or held for future development when indicators of potential impairment exist and the carrying value of the real estate asset is greater than the undiscounted future net cash flows the asset is expected to generate. These real estate assets are written down to fair value, which is primarily determined based on the estimated future net cash flows discounted for inherent risk associated with each such asset, or other valuation techniques. We record an inventory impairment charge on land held for sale when the carrying value of a land parcel is greater than its fair value. These real estate assets are written down to fair value, less associated costs to sell. The estimated fair values of such assets are generally based on bona fide letters of intent from outside parties, executed sales contracts, broker quotes or similar information. |
Consolidation (ASC 810) | We participate in joint ventures from time to time that conduct land acquisition, land development and/or other homebuilding activities in various markets where our homebuilding operations are located. Our investments in these joint ventures may create a variable interest in a variable interest entity (“VIE”), depending on the contractual terms of the arrangement. We analyze our joint ventures under the variable interest model to determine whether they are VIEs and, if so, whether we are the primary beneficiary. Based on our analyses, we determined that one of our joint ventures at February 28, 2022 and November 30, 2021 was a VIE, but we were not the primary beneficiary of the VIE. Therefore, all of our joint ventures at February 28, 2022 and November 30, 2021 were unconsolidated and accounted for under the equity method because we did not have a controlling financial interest. Land Option Contracts and Other Similar Contracts. In the ordinary course of our business, we enter into land option contracts and other similar contracts with third parties and unconsolidated entities to acquire rights to land for the construction of homes. Under these contracts, we typically make a specified option payment or earnest money deposit in consideration for the right to purchase land in the future, usually at a predetermined price. We analyze each of our land option contracts and other similar contracts under the variable interest model to determine whether the land seller is a VIE and, if so, whether we are the primary beneficiary. Although we do not have legal title to the underlying land, we are required to consolidate a VIE if we are the primary beneficiary. As a result of our analyses, we determined that as of |
Debt (ASC 470) | For land option contracts and other similar contracts where the land seller entity is not required to be consolidated under the variable interest model, we consider whether such contracts should be accounted for as financing arrangements. Land option contracts and other similar contracts that may be considered financing arrangements include those we enter into with third-party land financiers or developers in conjunction with such third parties acquiring a specific land parcel(s) on our behalf, at our direction, and those with other landowners where we or our designee make improvements to the optioned land parcel(s) during the applicable option period. For these land option contracts and other similar contracts, we record the remaining purchase price of the associated land parcel(s) in inventories in our consolidated balance sheets with a corresponding financing obligation if we determine that we are effectively compelled to exercise the option to purchase the land parcel(s). As a result of our evaluations of land option contracts and other similar contracts for financing arrangements, we recorded inventories in our consolidated balance sheets, with a corresponding increase to accrued expenses and other liabilities, of $11.9 million at February 28, 2022 and $26.5 million at November 30, 2021. |
Income Taxes (ASC 740) | We evaluate our deferred tax assets quarterly to determine if adjustments to our valuation allowance are required based on the consideration of all available positive and negative evidence using a “more likely than not” standard with respect to whether deferred tax assets will be realized. Our evaluation considers, among other factors, our historical operating results, our expectation of future profitability, the duration of the applicable statutory carryforward periods, and conditions in the housing market and the broader economy. The ultimate realization of our deferred tax assets depends primarily on our ability to generate future taxable income during the periods in which the related deferred tax assets become deductible. The value of our deferred tax assets depends on applicable income tax rates. |
Fair Value Measurements and Disclosures (ASC 820) | Fair value measurements of assets and liabilities are categorized based on the following hierarchy: Level 1 Fair value determined based on quoted prices in active markets for identical assets or liabilities. Level 2 Fair value determined using significant observable inputs, such as quoted prices for similar assets or liabilities or quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs that are derived principally from or corroborated by observable market data, by correlation or other means. Level 3 Fair value determined using significant unobservable inputs, such as pricing models, discounted cash flows, or similar techniques. |
Guarantees (ASC 460) | Guarantees. In the normal course of our business, we issue certain representations, warranties and guarantees related to our home sales and land sales. Based on historical experience, we do not believe any potential liability with respect to these representations, warranties or guarantees would be material to our consolidated financial statements. |
Self-Insurance | Self-Insurance. We maintain, and require the majority of our independent contractors to maintain, general liability insurance (including construction defect and bodily injury coverage) and workers’ compensation insurance. These insurance policies protect us against a portion of our risk of loss from claims related to our homebuilding activities, subject to certain self-insured retentions, deductibles and other coverage limits. We also maintain certain other insurance policies. Costs associated with our self-insurance programs are included in selling, general and administrative expenses. In Arizona, California, Colorado and Nevada, our contractors’ general liability insurance primarily takes the form of a wrap-up policy under a program where eligible independent contractors are enrolled as insureds on each community. Enrolled contractors contribute toward the cost of the insurance and agree to pay a contractual amount in the future if there is a claim related to their work. To the extent provided under the wrap-up program, we absorb the enrolled contractors’ general liability associated with the work performed on our homes within the applicable community as part of our overall general liability insurance and our self-insurance. We self-insure a portion of our overall risk through the use of a captive insurance subsidiary, which provides coverage for our exposure to construction defect, bodily injury and property damage claims and related litigation or regulatory actions, up to certain limits. Our self-insurance liability generally covers the costs of settlements and/or repairs, if any, as well as our costs to defend and resolve the following types of claims: • Construction defect : Construction defect claims, which represent the largest component of our self-insurance liability, typically originate through a legal or regulatory process rather than directly by a homeowner and involve the alleged occurrence of a condition affecting two or more homes within the same community, or they involve a common area or homeowners’ association property within a community. These claims typically involve higher costs to resolve than individual homeowner warranty claims, and the rate of claims is highly variable. • Bodily injury : Bodily injury claims typically involve individuals (other than our employees) who claim they were injured while on our property or as a result of our operations. • Property damage : Property damage claims generally involve claims by third parties for alleged damage to real or personal property as a result of our operations. Such claims may occasionally include those made against us by owners of property located near our communities. Our self-insurance liability at each reporting date represents the estimated costs of reported claims, claims incurred but not yet reported, and claim adjustment expenses. The amount of our self-insurance liability is based on an analysis performed by a third-party actuary that uses our historical claim and expense data, as well as industry data to estimate these overall costs. Key assumptions used in developing these estimates include claim frequencies, severities and resolution patterns, which can occur over an extended period of time. These estimates are subject to variability due to the length of time between the delivery of a home to a homebuyer and when a construction defect claim is made, and the ultimate resolution of such claim; uncertainties regarding such claims relative to our markets and the types of products we build; and legal or regulatory actions and/or interpretations, among other factors. Due to the degree of judgment involved and the potential for variability in these underlying assumptions, our actual future costs could differ from those estimated. In addition, changes in the frequency and severity of reported claims and the estimates to resolve claims can impact the trends and assumptions used in the actuarial analysis, which could be material to our consolidated financial statements. Though state regulations vary, construction defect claims are reported and resolved over a long period of time, which can extend for 10 years or more. As a result, the majority of the estimated self-insurance liability based on the actuarial analysis relates to claims incurred but not yet reported. Therefore, adjustments related to individual existing claims generally do not significantly impact the overall estimated liability. Adjustments to our liabilities related to homes delivered in prior years are recorded in the period in which a change in our estimate occurs. |
Warranty | Warranty . We provide a limited warranty on all of our homes. The specific terms and conditions of our limited warranty program vary depending upon the markets in which we do business. We generally provide a structural warranty of 10 years, a warranty on electrical, heating, cooling, plumbing and certain other building systems each varying from two |
Inventory (Policies)
Inventory (Policies) | 3 Months Ended |
Feb. 28, 2022 | |
Inventory Disclosure [Abstract] | |
Interest Capitalization, Policy | Interest is capitalized to inventories while the related communities or land parcels are being actively developed and until homes are completed or the land is available for immediate sale. Capitalized interest is amortized to construction and land costs as the related inventories are delivered to homebuyers or land buyers (as applicable). In the case of land held for future development and land held for sale, applicable interest is expensed as incurred. |
Leases (Policies)
Leases (Policies) | 3 Months Ended |
Feb. 28, 2022 | |
Leases [Abstract] | |
Lessee, Leases | We lease certain property and equipment for use in our operations. We recognize lease expense for these leases generally on a straight-line basis over the lease term and combine lease and non-lease components for all leases. Lease right-of-use assets and lease liabilities are recorded on our consolidated balance sheets for leases with an expected term at the commencement date of more than 12 months. Lease expense is included in selling, general and administrative expenses in our consolidated statements of operations and includes costs for leases with terms of more than 12 months as well as short-term leases with terms of 12 months or less. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Feb. 28, 2022 | |
Segment Reporting [Abstract] | |
Financial Information Relating to Company Reporting Segments | The following tables present financial information relating to our homebuilding reporting segments (in thousands): Three Months Ended February 28, 2022 2021 Revenues: West Coast $ 658,874 $ 514,516 Southwest 209,767 187,685 Central 355,322 309,708 Southeast 170,191 126,099 Total $ 1,394,154 $ 1,138,008 Three Months Ended February 28, 2022 2021 Pretax income (loss): West Coast $ 110,034 $ 58,631 Southwest 35,905 33,055 Central 38,116 40,992 Southeast 20,266 12,115 Corporate and other (34,700) (29,742) Total $ 169,621 $ 115,051 Inventory impairment and land option contract abandonment charges: West Coast $ — $ 3,801 Southwest 109 128 Central 66 — Southeast — 135 Total $ 175 $ 4,064 February 28, November 30, Assets: West Coast $ 2,704,711 $ 2,520,374 Southwest 997,514 938,300 Central 1,283,385 1,168,242 Southeast 740,145 684,752 Corporate and other 421,198 480,048 Total $ 6,146,953 $ 5,791,716 |
Financial Services (Tables)
Financial Services (Tables) | 3 Months Ended |
Feb. 28, 2022 | |
Segment Reporting Information [Line Items] | |
Financial Services Income (Loss) | The following tables present financial information relating to our financial services reporting segment (in thousands): Three Months Ended February 28, 2022 2021 Revenues Insurance commissions $ 2,518 $ 1,848 Title services 2,101 1,882 Other 16 — Total 4,635 3,730 Expenses General and administrative (1,347) (1,200) Operating income 3,288 2,530 Equity in income of unconsolidated joint ventures 5,148 5,970 Pretax income $ 8,436 $ 8,500 |
Financial Service [Member] | |
Segment Reporting Information [Line Items] | |
Schedule of Financial Services Assets and Liabilities | February 28, November 30, Assets Cash and cash equivalents $ 2,049 $ 1,372 Receivables 1,810 2,166 Investments in unconsolidated joint ventures 12,415 16,317 Other assets (a) 25,100 24,347 Total assets $ 41,374 $ 44,202 Liabilities Accounts payable and accrued expenses $ 2,808 $ 2,685 Total liabilities $ 2,808 $ 2,685 (a) Other assets at February 28, 2022 and November 30, 2021 included $24.9 million and $24.1 million, respectively, of contract assets for estimated future renewal commissions. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Feb. 28, 2022 | |
Earnings Per Share, Basic and Diluted [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Basic and diluted earnings per share were calculated as follows (in thousands, except per share amounts): Three Months Ended February 28, 2022 2021 Numerator: Net income $ 134,257 $ 97,051 Less: Distributed earnings allocated to nonvested restricted stock (65) (63) Less: Undistributed earnings allocated to nonvested restricted stock (584) (381) Numerator for basic earnings per share 133,608 96,607 Effect of dilutive securities: Add: Undistributed earnings allocated to nonvested restricted stock 584 381 Less: Undistributed earnings reallocated to nonvested restricted stock (566) (368) Numerator for diluted earnings per share $ 133,626 $ 96,620 Denominator: Weighted average shares outstanding — basic 88,285 91,716 Effect of dilutive securities: Share-based payments 2,782 3,187 Weighted average shares outstanding — diluted 91,067 94,903 Basic earnings per share $ 1.51 $ 1.05 Diluted earnings per share $ 1.47 $ 1.02 |
Receivables (Tables)
Receivables (Tables) | 3 Months Ended |
Feb. 28, 2022 | |
Receivables [Abstract] | |
Schedule of Receivables | Receivables consisted of the following (in thousands): February 28, November 30, Due from utility companies, improvement districts and municipalities $ 160,070 $ 151,284 Recoveries related to self-insurance and other legal claims 84,706 95,063 Refundable deposits and bonds 14,526 13,681 Other 58,923 49,359 Subtotal 318,225 309,387 Allowance for doubtful accounts (5,109) (5,196) Total $ 313,116 $ 304,191 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Feb. 28, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following (in thousands): February 28, November 30, Homes completed or under construction $ 2,369,054 $ 2,103,038 Land under development 2,828,779 2,699,791 Total $ 5,197,833 $ 4,802,829 |
Schedule of Capitalized Interest Costs | Our interest costs were as follows (in thousands): Three Months Ended February 28, 2022 2021 Capitalized interest at beginning of period $ 161,119 $ 190,113 Interest incurred 28,303 31,092 Interest amortized to construction and land costs (a) (29,773) (32,650) Capitalized interest at end of period $ 159,649 $ 188,555 (a) For the three months ended February 28, 2021, interest amortized to construction and land costs included a nominal amount related to land sales during the period. |
Inventory Impairments and Lan_2
Inventory Impairments and Land Option Contract Abandonments (Tables) | 3 Months Ended |
Feb. 28, 2022 | |
Inventory Impairments and Land Option Contract Abandonments [Abstract] | |
Schedule of Significant Unobservable Inputs | The following table summarizes significant quantitative unobservable inputs we utilized in our fair value measurements with respect to the impaired communities written down to fair value: Three Months Ended Unobservable Input February 28, 2021 Average selling price $471,000 Deliveries per month 5 Discount rate 19% |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Feb. 28, 2022 | |
Variable Interest Entities [Abstract] | |
Summary of Interests in Land Option Contracts | The following table presents a summary of our interests in land option contracts and other similar contracts (in thousands): February 28, 2022 November 30, 2021 Cash Aggregate Cash Aggregate Unconsolidated VIEs $ 28,979 $ 914,780 $ 38,333 $ 1,093,669 Other land option contracts and other similar contracts 35,652 816,672 36,176 766,182 Total $ 64,631 $ 1,731,452 $ 74,509 $ 1,859,851 |
Investments in Unconsolidated_2
Investments in Unconsolidated Joint Ventures (Tables) | 3 Months Ended |
Feb. 28, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Statements of Operations of Unconsolidated Joint Ventures | The following table presents combined condensed information from the statements of operations for our unconsolidated joint ventures (in thousands): Three Months Ended February 28, 2022 2021 Revenues $ 2,850 $ 9,691 Construction and land costs (2,299) (8,125) Other expense, net (430) (879) Income $ 121 $ 687 |
Balance Sheets of Unconsolidated Joint Ventures | The following table presents combined condensed balance sheet information for our unconsolidated joint ventures (in thousands): February 28, November 30, Assets Cash $ 21,281 $ 15,731 Receivables 872 795 Inventories 67,472 64,034 Other assets 47 50 Total assets $ 89,672 $ 80,610 Liabilities and equity Accounts payable and other liabilities $ 16,135 $ 12,285 Equity 73,537 68,325 Total liabilities and equity $ 89,672 $ 80,610 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Feb. 28, 2022 | |
Other Assets [Abstract] | |
Schedule of Other Assets | Other assets consisted of the following (in thousands): February 28, November 30, Cash surrender value of corporate-owned life insurance contracts $ 66,672 $ 68,748 Lease right-of-use assets 26,314 27,508 Prepaid expenses 6,600 6,344 Debt issuance costs associated with unsecured revolving credit facility, net 5,130 1,553 Total $ 104,716 $ 104,153 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 3 Months Ended |
Feb. 28, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consisted of the following (in thousands): February 28, November 30, Self-insurance and other legal liabilities $ 233,704 $ 239,129 Employee compensation and related benefits 131,042 192,549 Warranty liability 97,466 96,153 Customer deposits 83,246 71,032 Federal and state taxes payable 47,388 8,290 Accrued interest payable 32,160 24,554 Lease liabilities 28,113 29,279 Inventory-related obligations (a) 20,664 36,146 Real estate and business taxes 15,917 17,563 Other 44,552 42,210 Total $ 734,252 $ 756,905 (a) Represents liabilities for financing arrangements discussed in Note 8 – Variable Interest Entities, as well as liabilities for fixed or determinable amounts associated with tax increment financing entity (“TIFE”) assessments. As homes are delivered, our obligation to pay the remaining TIFE assessments associated with each underlying lot is transferred to |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Feb. 28, 2022 | |
Leases [Abstract] | |
Operating Lease, Lease Income [Table Text Block] | The following table presents our lease right-of-use assets and lease liabilities (dollars in thousands): February 28, November 30, Lease right-of-use assets (a) $ 26,485 $ 27,693 Lease liabilities (b) 28,302 29,481 (a) Represents lease right-of-use assets within our homebuilding operations and financial services operations of $26.3 million and $.2 million, respectively, at February 28, 2022, and $27.5 million and $.2 million, respectively, at November 30, 2021. (b) Represents lease liabilities within our homebuilding operations and financial services operations of $28.1 million and $.2 million, respectively, at February 28, 2022, and $29.3 million and $.2 million, respectively, at November 30, 2021. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Feb. 28, 2022 | |
Income Tax Disclosure [Abstract] | |
Income tax benefit computed at the statutory U.S federal income tax rate and income tax benefit (expense) provided in the consolidated statements of operations | Our income tax expense and effective tax rates were as follows (dollars in thousands): Three Months Ended February 28, 2022 2021 Income tax expense $ 43,800 $ 26,500 Effective tax rate 24.6 % 21.4 % |
Notes Payable (Tables)
Notes Payable (Tables) | 3 Months Ended |
Feb. 28, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Mortgages and Notes Payable | Notes payable consisted of the following (in thousands): February 28, November 30, Unsecured revolving credit facility $ 250,000 $ — Mortgages and land contracts due to land sellers and other loans 4,927 5,327 7.50% Senior notes due September 15, 2022 349,635 349,471 7.625% Senior notes due May 15, 2023 350,661 350,788 6.875% Senior notes due June 15, 2027 297,267 297,161 4.80% Senior notes due November 15, 2029 296,984 296,905 4.00% Senior notes due June 15, 2031 385,474 385,375 Total $ 1,934,948 $ 1,685,027 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 3 Months Ended |
Feb. 28, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on Nonrecurring Basis | The following table presents the fair value hierarchy and our assets measured at fair value on a nonrecurring basis for the three months ended February 28, 2022 and the year ended November 30, 2021 (in thousands): February 28, 2022 November 30, 2021 Description Fair Value Hierarchy Pre-Impairment Value Inventory Impairment Charges Fair Value (a) Pre-Impairment Value Inventory Impairment Charges Fair Value (a) Inventories Level 3 $ — $ — $ — $ 27,923 $ (9,903) $ 18,020 (a) Amounts represent the aggregate fair value for real estate assets impacted by inventory impairment charges during the applicable period, as of the date that the fair value measurements were made. The carrying value for these real estate assets may have subsequently increased or decreased from the fair value reflected due to activity that has occurred since the measurement date. |
Schedule of Fair Value Hierarchy, Carrying Values, and Estimated Fair Values of Financial Instruments | The following table presents the fair value hierarchy, carrying value and estimated fair value of our financial instruments, except those for which the carrying values approximate fair values (in thousands): February 28, 2022 November 30, 2021 Description Fair Value Carrying Estimated Carrying Estimated Financial Liabilities: Senior notes Level 2 $ 1,680,021 $ 1,726,050 $ 1,679,700 $ 1,796,500 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Feb. 28, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Changes in the Warranty Liability | The changes in our warranty liability were as follows (in thousands): Three Months Ended February 28, 2022 2021 Balance at beginning of period $ 96,153 $ 91,646 Warranties issued 7,890 7,457 Payments (6,577) (6,416) Balance at end of period $ 97,466 $ 92,687 |
Schedule of Self-Insurance Liability | The changes in our self-insurance liability were as follows (in thousands): Three Months Ended February 28, 2022 2021 Balance at beginning of period $ 189,131 $ 194,180 Self-insurance provided 4,739 4,583 Payments (2,466) (5,500) Adjustments (a) (810) 182 Balance at end of period $ 190,594 $ 193,445 (a) Represents net changes in estimated probable recoveries related to self-insurance, which are recorded in receivables, to present our self-insurance liability on a gross basis. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Feb. 28, 2022 | |
Equity [Abstract] | |
Summary of Changes in Stockholders’ Equity | A summary of changes in stockholders’ equity is presented below (in thousands): Three Months Ended February 28, 2022 and 2021 Number of Shares Common Grantor Treasury Common Stock Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Grantor Stock Treasury Stock Total Stockholders’ Equity Balance at November 30, 2021 100,711 (6,705) (5,785) $ 100,711 $ 848,620 $ 2,379,364 $ (19,119) $ (72,718) $ (217,383) $ 3,019,475 Net income — — — — — 134,257 — — — 134,257 Dividends on common stock — — — — — (14,130) — — — (14,130) Stock awards — — 721 — (27,249) — — — 27,249 — Stock-based compensation — — — — 6,867 — — — — 6,867 Tax payments associated with stock-based compensation awards — — (320) — — — — — (12,153) (12,153) Balance at February 28, 2022 100,711 (6,705) (5,384) $ 100,711 $ 828,238 $ 2,499,491 $ (19,119) $ (72,718) $ (202,287) $ 3,134,316 Balance at November 30, 2020 99,869 (7,124) (1,107) $ 99,869 $ 824,306 $ 1,868,896 $ (22,276) $ (77,265) $ (27,761) $ 2,665,769 Cumulative effect of adoption of new accounting standard for credit losses — — — — — (226) — — — (226) Net income — — — — — 97,051 — — — 97,051 Dividends on common stock — — — — — (14,064) — — — (14,064) Employee stock options/other 173 — — 173 2,365 — — — — 2,538 Stock awards — 419 10 — (4,787) — — 4,547 240 — Stock-based compensation — — — — 5,572 — — — — 5,572 Tax payments associated with stock-based compensation awards — — (208) — — — — — (8,456) (8,456) Balance at February 28, 2021 100,042 (6,705) (1,305) $ 100,042 $ 827,456 $ 1,951,657 $ (22,276) $ (72,718) $ (35,977) $ 2,748,184 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Narratives) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Feb. 28, 2022 | Feb. 28, 2021 | Nov. 30, 2021 | Nov. 30, 2020 | |
Equity | $ 3,134,316 | $ 2,748,184 | $ 3,019,475 | $ 2,665,769 |
Cash equivalents | 15,300 | 15,400 | ||
Other comprehensive income (loss) | 134,300 | 97,100 | ||
Retained earnings | 2,499,491 | 2,379,364 | ||
Financial Service [Member] | ||||
Contract assets | 24,900 | 24,100 | ||
Retained Earnings [Member] | ||||
Equity | $ 2,499,491 | $ 1,951,657 | $ 2,379,364 | 1,868,896 |
Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||
Equity | (226) | |||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings [Member] | ||||
Equity | $ (226) |
Segment Information (Narratives
Segment Information (Narratives) (Details) | 3 Months Ended |
Feb. 28, 2022segment | |
Schedule of Equity Method Investments [Line Items] | |
Number of reporting segments | 5 |
KBHS, LLC [Member] | Financial Service [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest in the venture | 50.00% |
KBHS, LLC [Member] | GR Alliance Ventures, LLC [Domain] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest in the venture | 50.00% |
Home Building [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Number of reporting segments | 4 |
Financial Service [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Number of reporting segments | 1 |
Segment Information (Segment Fi
Segment Information (Segment Financial Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Nov. 30, 2021 | |
Segment Reporting Information [Line Items] | |||
Inventory impairments and land option contract abandonments | $ 175 | $ 4,064 | |
Revenues: | |||
Total revenues | 1,398,789 | 1,141,738 | |
Pretax income (loss): | |||
Pretax income (loss) | 178,057 | 123,551 | |
Inventories: Homes under Construction | 2,369,054 | $ 2,103,038 | |
Inventories: Land under development | 2,828,779 | 2,699,791 | |
Inventories: Land held for future development or sale | 52,900 | 45,200 | |
Inventories | 5,197,833 | 4,802,829 | |
Assets | |||
Total assets | 6,188,327 | 5,835,918 | |
Land Option Contract Abandonment [Member] | |||
Pretax income (loss): | |||
Land option contract abandonment charges | 200 | 400 | |
Home Building [Member] | |||
Segment Reporting Information [Line Items] | |||
Inventory impairments and land option contract abandonments | 175 | 4,064 | |
Revenues: | |||
Total revenues | 1,394,154 | 1,138,008 | |
Pretax income (loss): | |||
Pretax income (loss) | 169,621 | 115,051 | |
Inventories | 5,197,833 | 4,802,829 | |
Assets | |||
Total assets | 6,146,953 | 5,791,716 | |
Home Building [Member] | West Coast [Member] | |||
Segment Reporting Information [Line Items] | |||
Inventory impairments and land option contract abandonments | 0 | 3,801 | |
Revenues: | |||
Total revenues | 658,874 | 514,516 | |
Pretax income (loss): | |||
Pretax income (loss) | 110,034 | 58,631 | |
Assets | |||
Total assets | 2,704,711 | 2,520,374 | |
Home Building [Member] | Southwest [Member] | |||
Segment Reporting Information [Line Items] | |||
Inventory impairments and land option contract abandonments | 109 | 128 | |
Revenues: | |||
Total revenues | 209,767 | 187,685 | |
Pretax income (loss): | |||
Pretax income (loss) | 35,905 | 33,055 | |
Assets | |||
Total assets | 997,514 | 938,300 | |
Home Building [Member] | Central [Member] | |||
Segment Reporting Information [Line Items] | |||
Inventory impairments and land option contract abandonments | 66 | 0 | |
Revenues: | |||
Total revenues | 355,322 | 309,708 | |
Pretax income (loss): | |||
Pretax income (loss) | 38,116 | 40,992 | |
Assets | |||
Total assets | 1,283,385 | 1,168,242 | |
Home Building [Member] | Southeast [Member] | |||
Segment Reporting Information [Line Items] | |||
Inventory impairments and land option contract abandonments | 0 | 135 | |
Revenues: | |||
Total revenues | 170,191 | 126,099 | |
Pretax income (loss): | |||
Pretax income (loss) | 20,266 | 12,115 | |
Assets | |||
Total assets | 740,145 | 684,752 | |
Home Building [Member] | Corporate and Other [Member] | |||
Pretax income (loss): | |||
Pretax income (loss) | (34,700) | $ (29,742) | |
Assets | |||
Total assets | $ 421,198 | $ 480,048 |
Financial Services (Schedule of
Financial Services (Schedule of Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Revenues | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,398,789 | $ 1,141,738 |
Expenses | ||
Equity in income of unconsolidated joint ventures | 5,171 | 6,274 |
Pretax income | 178,057 | 123,551 |
Financial Service [Member] | ||
Revenues | ||
Insurance commissions | 2,518 | 1,848 |
Title services | 2,101 | 1,882 |
Other | 16 | 0 |
Revenue from Contract with Customer, Excluding Assessed Tax | 4,635 | 3,730 |
Selling, General and Administrative Expense | 1,347 | 1,200 |
Expenses | ||
Operating income | 3,288 | 2,530 |
Equity in income of unconsolidated joint ventures | 5,148 | 5,970 |
Pretax income | $ 8,436 | $ 8,500 |
Financial Services (Schedule _2
Financial Services (Schedule of Assets and Liabilities) (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Nov. 30, 2021 | Feb. 28, 2021 | |
Assets | ||||
Cash and cash equivalents | $ 242,737 | $ 570,959 | ||
Total assets | 6,188,327 | $ 5,835,918 | ||
Financial Service [Member] | ||||
Assets | ||||
Cash and cash equivalents | 2,049 | 1,372 | $ 1,166 | |
Receivables | 1,810 | 2,166 | ||
Investments in unconsolidated joint ventures | 12,415 | 16,317 | ||
Other assets | [1] | 25,100 | 24,347 | |
Total assets | 41,374 | 44,202 | ||
Liabilities | ||||
Accounts payable and accrued expenses | 2,808 | 2,685 | ||
Total liabilities | 2,808 | 2,685 | ||
Contract assets | $ 24,900 | $ 24,100 | ||
[1] | Other assets at February 28, 2022 and November 30, 2021 included $24.9 million and $24.1 million, respectively, of contract assets for estimated future renewal commissions. |
Earnings Per Share (Basic and D
Earnings Per Share (Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Numerator: | ||
Net income | $ 134,257 | $ 97,051 |
Less: Distributed earnings allocated to nonvested restricted stock | (65) | (63) |
Less: Undistributed earnings allocated to nonvested restricted stock | (584) | (381) |
Numerator for basic earnings per share | 133,608 | 96,607 |
Add: Undistributed earnings allocated to nonvested restricted stock | 584 | 381 |
Less: Undistributed earnings reallocated to nonvested restricted stock | (566) | (368) |
Numerator for diluted earnings per share | $ 133,626 | $ 96,620 |
Denominator: | ||
Weighted average shares outstanding — basic (in shares) | 88,285 | 91,716 |
Effect of dilutive securities: Share-based payments (in shares) | 2,782 | 3,187 |
Weighted average shares outstanding — diluted (in shares) | 91,067 | 94,903 |
Basic earnings (loss) per share (in dollars per share) | $ 1.51 | $ 1.05 |
Diluted earnings (loss) per share (in dollars per share) | $ 1.47 | $ 1.02 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Nov. 30, 2021 |
Receivables [Abstract] | ||
Due from utility companies, improvement districts and municipalities | $ 160,070 | $ 151,284 |
Recoveries related to self-insurance and other legal claims | 84,706 | 95,063 |
Refundable deposits and bonds | 14,526 | 13,681 |
Other | 58,923 | 49,359 |
Subtotal | 318,225 | 309,387 |
Allowance for doubtful accounts | $ (5,109) | $ (5,196) |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Nov. 30, 2021 |
Inventories | ||
Homes completed or under construction | $ 2,369,054 | $ 2,103,038 |
Land under development | 2,828,779 | 2,699,791 |
Total | 5,197,833 | 4,802,829 |
Land held for future development | $ 52,900 | 45,200 |
Inventory, Land Held-for-sale | $ 600 |
Inventories (Schedule of Capita
Inventories (Schedule of Capitalized Interest Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | ||
Interest Costs | |||
Capitalized interest at beginning of period | $ 161,119 | $ 190,113 | |
Interest incurred | 28,303 | 31,092 | |
Interest amortized to construction and land costs | [1] | (29,773) | (32,650) |
Capitalized interest at end of period | 159,649 | 188,555 | |
Land [Member] | |||
Interest Costs | |||
Interest amortized to construction and land costs | $ 0 | $ (200) | |
[1] | For the three months ended February 28, 2021, interest amortized to construction and land costs included a nominal amount related to land sales during the period. |
Inventory Impairments and Lan_3
Inventory Impairments and Land Option Contract Abandonments (Narratives) (Details) | 3 Months Ended | |||
Feb. 28, 2022USD ($)lotproperty | Feb. 28, 2021USD ($)delivery | Nov. 30, 2021USD ($)property | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Number of land parcels or communities evaluated for recoverability | property | 1 | 0 | ||
Carrying value of communities or land parcels evaluated for impairment | $ 6,600,000 | |||
Inventory impairment charges | 0 | $ 3,600,000 | ||
Aggregate carrying value of inventory impacted by pretax, noncash inventory impairment charges | $ 90,600,000 | $ 87,700,000 | ||
Number of communities and various other land parcels impacted by pretax, noncash inventory impairment charges | 7 | 11 | ||
Minimum [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Average Selling price | [1] | $ 471,000 | ||
Deliveries per month | delivery | [1] | 5 | ||
Discount Rate, Percent | [1] | 19.00% | ||
Maximum [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Deliveries per month | delivery | 5 | |||
Land Option Contract Abandonment [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Land option contract abandonment charges | $ 200,000 | $ 400,000 | ||
[1] | The ranges of inputs used in each period primarily reflect differences between the housing markets where each impacted community is located, rather than fluctuations in prevailing market conditions. |
Variable Interest Entities (Det
Variable Interest Entities (Details) $ in Thousands | Feb. 28, 2022USD ($)joint_venture | Nov. 30, 2021USD ($)joint_venture |
Variable Interest Entity [Line Items] | ||
Number of investments in unconsolidated joint ventures | joint_venture | 6 | 6 |
Cash Deposits | $ 64,631 | $ 74,509 |
Aggregate Purchase Price | 1,731,452 | 1,859,851 |
Pre-acquisition costs related to land option contracts and other similar contracts | 37,900 | 38,100 |
Increase in inventories and accrued expenses and other liabilities | $ 11,900 | $ 26,500 |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Number of investments in unconsolidated joint ventures | joint_venture | 1 | 1 |
Cash Deposits | $ 28,979 | $ 38,333 |
Aggregate Purchase Price | 914,780 | 1,093,669 |
Non-VIE Land Option Contracts And Other Similar Contracts [Member] | ||
Variable Interest Entity [Line Items] | ||
Cash Deposits | 35,652 | 36,176 |
Aggregate Purchase Price | $ 816,672 | $ 766,182 |
Investments in Unconsolidated_3
Investments in Unconsolidated Joint Ventures (Financial Information for Unconsolidated Joint Ventures) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Feb. 28, 2022 | Feb. 28, 2021 | Nov. 30, 2021 | Nov. 30, 2020 | |
Assets | ||||
Total assets | $ 6,188,327 | $ 5,835,918 | ||
Liabilities and equity | ||||
Equity | 3,134,316 | $ 2,748,184 | 3,019,475 | $ 2,665,769 |
Total liabilities and stockholders’ equity | 6,188,327 | 5,835,918 | ||
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||||
Statements of operations of unconsolidated joint venture | ||||
Revenues | 2,850 | 9,691 | ||
Cost of Revenue | (2,299) | (8,125) | ||
Other Nonoperating Income (Expense) | (430) | (879) | ||
Income | 121 | $ 687 | ||
Assets | ||||
Cash | 21,281 | 15,731 | ||
Receivables | 872 | 795 | ||
Inventory, Real Estate | 67,472 | 64,034 | ||
Other Assets | 47 | 50 | ||
Total assets | 89,672 | 80,610 | ||
Liabilities and equity | ||||
Accounts payable and other liabilities | 16,135 | 12,285 | ||
Equity | 73,537 | 68,325 | ||
Total liabilities and stockholders’ equity | $ 89,672 | $ 80,610 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Nov. 30, 2021 | |
Lease right-of-use assets | [1] | $ 26,485 | $ 27,693 |
Home Building [Member] | |||
Cash surrender value of corporate-owned life insurance contracts | 66,672 | 68,748 | |
Lease right-of-use assets | 26,314 | 27,508 | |
Prepaid expenses | 6,600 | 6,344 | |
Debt issuance costs associated with unsecured revolving credit facility, net | 5,130 | 1,553 | |
Total | $ 104,716 | $ 104,153 | |
[1] | Represents lease right-of-use assets within our homebuilding operations and financial services operations of $26.3 million and $.2 million, respectively, at February 28, 2022, and $27.5 million and $.2 million, respectively, at November 30, 2021 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Nov. 30, 2021 | Feb. 28, 2021 | Nov. 30, 2020 | |
Operating Lease, Liability | [1] | $ 28,302 | $ 29,481 | ||
Self-insurance and other legal liabilities | 233,704 | 239,129 | |||
Employee compensation and related benefits | 131,042 | 192,549 | |||
Warranty liability | 97,466 | 96,153 | $ 92,687 | $ 91,646 | |
Contract with Customer, Liability | 83,246 | 71,032 | |||
Accrued Income Taxes, Noncurrent | 47,388 | 8,290 | |||
Accrued interest payable | 32,160 | 24,554 | |||
Inventory-related liabilities | [2] | 20,664 | 36,146 | ||
Real estate and business taxes | 15,917 | 17,563 | |||
Other | 44,552 | 42,210 | |||
Total | 756,905 | ||||
Home Building [Member] | |||||
Operating Lease, Liability | 28,113 | 29,279 | |||
Total | $ 734,252 | $ 756,905 | |||
[1] | Represents lease liabilities within our homebuilding operations and financial services operations of $28.1 million and $.2 million, respectively, at February 28, 2022, and $29.3 million and $.2 million, respectively, at November 30, 2021. | ||||
[2] | Represents liabilities for financing arrangements discussed in Note 8 – Variable Interest Entities, as well as liabilities for fixed or determinable amounts associated with tax increment financing entity (“TIFE”) assessments. As homes are delivered, our obligation to pay the remaining TIFE assessments associated with each underlying lot is transferred to the homebuyer. As such, these assessment obligations will be paid by us only to the extent we do not deliver homes on applicable lots before the related TIFE obligations mature. |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Feb. 28, 2022 | Feb. 28, 2021 | Nov. 30, 2021 | ||
Lease, Cost | $ 4,300 | $ 4,300 | ||
Lease right-of-use assets | [1] | 26,485 | $ 27,693 | |
Operating Lease, Liability | [2] | 28,302 | 29,481 | |
Short-term Lease, Cost | 1,200 | $ 1,300 | ||
Home Building [Member] | ||||
Lease right-of-use assets | 26,314 | 27,508 | ||
Operating Lease, Liability | 28,113 | 29,279 | ||
Financial Service [Member] | ||||
Lease right-of-use assets | 200 | 200 | ||
Operating Lease, Liability | $ 200 | $ 200 | ||
[1] | Represents lease right-of-use assets within our homebuilding operations and financial services operations of $26.3 million and $.2 million, respectively, at February 28, 2022, and $27.5 million and $.2 million, respectively, at November 30, 2021 | |||
[2] | Represents lease liabilities within our homebuilding operations and financial services operations of $28.1 million and $.2 million, respectively, at February 28, 2022, and $29.3 million and $.2 million, respectively, at November 30, 2021. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 10 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Dec. 31, 2020 | Nov. 30, 2021 | |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||
Income tax expense | $ 43,800,000 | $ 26,500,000 | ||
Effective tax rate | 24.60% | 21.40% | ||
Net (increase) reduction in valuation allowance | $ 0 | |||
Excess tax benefits related to stock-based compensation | (2,200,000) | $ (3,500,000) | ||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Amount | 1,700,000 | 1,400,000 | ||
Tax credits | (200,000) | (2,700,000) | ||
Deferred tax assets | 190,400,000 | $ 194,800,000 | ||
Valuation allowance | 17,400,000 | 17,400,000 | ||
Adjustments to deferred tax valuation allowance | 0 | |||
Gross unrecognized tax benefits (including interest and penalties) | 900,000 | 900,000 | ||
CARES Act Employee Retention Credit | 4,300,000 | |||
Income Tax Contingency [Line Items] | ||||
Share-based Payment Arrangement, Expense, Tax Benefit | 2,200,000 | 3,500,000 | ||
Net (increase) reduction in valuation allowance | 0 | |||
Gross unrecognized tax benefits (including interest and penalties) | 900,000 | 900,000 | ||
Tax credits | (200,000) | $ (2,700,000) | ||
Deferred Tax Assets, Valuation Allowance | $ 17,400,000 | $ 17,400,000 | ||
Maximum [Member] | ||||
Income Tax Contingency [Line Items] | ||||
RefundableTaxCreditAllowedPerEmployeeCARESAct | $ 5,000 |
Notes Payable (Schedule Notes P
Notes Payable (Schedule Notes Payable) (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Nov. 30, 2021 |
Debt Instrument [Line Items] | ||
Mortgages and notes payable | $ 1,934,948 | $ 1,685,027 |
Mortgages and land contracts due to land sellers and other loans | ||
Debt Instrument [Line Items] | ||
Mortgages and notes payable | $ 4,927 | 5,327 |
Senior Notes [Member] | 7.50% Senior notes due September 15, 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, rate | 7.50% | |
Mortgages and notes payable | $ 349,635 | 349,471 |
Senior Notes [Member] | 7.625% Senior notes due May 15, 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, rate | 7.625% | |
Mortgages and notes payable | $ 350,661 | 350,788 |
Senior Notes [Member] | 6.875% Senior notes due June 15, 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, rate | 6.875% | |
Mortgages and notes payable | $ 297,267 | 297,161 |
Senior Notes [Member] | 4.80% Senior notes due November 15, 2029 | ||
Debt Instrument [Line Items] | ||
Senior notes, rate | 4.80% | |
Mortgages and notes payable | $ 296,984 | 296,905 |
Senior Notes [Member] | 4.00% Senior notes due June 15, 2031 | ||
Debt Instrument [Line Items] | ||
Senior notes, rate | 4.00% | |
Mortgages and notes payable | $ 385,474 | 385,375 |
Revolving Credit Facility [Member] | Unsecured revolving credit facility | ||
Debt Instrument [Line Items] | ||
Mortgages and notes payable | $ 250,000 | $ 0 |
Notes Payable (Narratives) (Det
Notes Payable (Narratives) (Details) - USD ($) | Feb. 28, 2022 | Feb. 28, 2022 | Feb. 17, 2022 | Nov. 30, 2021 |
Debt Instrument [Line Items] | ||||
Unamortized debt issuance costs, premiums and discounts | $ 10,000,000 | $ 10,000,000 | $ 10,300,000 | |
Letters of credit outstanding | 45,300,000 | 45,300,000 | 43,200,000 | |
Inventories pledged to collateralize mortgages and land contracts, carrying value | 18,500,000 | 18,500,000 | ||
Repayments of principal, 2019 | 353,200,000 | 353,200,000 | ||
Repayments of principal, 2020 | 351,700,000 | 351,700,000 | ||
Repayments of principal, 2021 | 0 | 0 | ||
Repayments of principal, 2022 | 0 | 0 | ||
Repayments of principal, thereafter | 990,000,000 | 990,000,000 | ||
Repayments of principal, 2023 | $ 0 | $ 0 | ||
6.875% Senior notes due June 15, 2027 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes, rate | 6.875% | 6.875% | ||
7.625% Senior notes due May 15, 2023 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes, rate | 7.625% | 7.625% | ||
4.00% Senior notes due June 15, 2031 | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes, rate | 4.00% | 4.00% | ||
4.80% Senior notes due November 15, 2029 | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes, rate | 4.80% | 4.80% | ||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Unsecured revolving credit facility, borrowing capacity | $ 1,090,000,000 | $ 1,090,000,000 | 800,000,000 | |
Unsecured revolving credit facility, expiration date | Feb. 18, 2027 | Oct. 7, 2023 | ||
Unsecured revolving credit facility, maximum borrowing capacity | $ 1,290,000,000 | 1,290,000,000 | ||
Credit facility, letters of credit outstanding | 250,000,000 | 250,000,000 | ||
Unsecured revolving credit facility, remaining borrowing capacity | $ 831,400,000 | $ 831,400,000 | ||
Revolving Credit Facility [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.15% | |||
Revolving Credit Facility [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.35% | |||
Letter of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Unsecured revolving credit facility, maximum borrowing capacity | $ 250,000,000 | $ 250,000,000 | ||
Credit facility, letters of credit outstanding | 8,600,000 | 8,600,000 | ||
Unsecured revolving credit facility, remaining borrowing capacity | 241,400,000 | 241,400,000 | ||
LOC Facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Unsecured revolving credit facility, borrowing capacity | 75,000,000 | $ 75,000,000 | ||
Unsecured revolving credit facility, expiration date | Feb. 13, 2025 | |||
Letters of credit outstanding | $ 36,700,000 | $ 36,700,000 | $ 34,600,000 |
Fair Value Disclosures (Assets
Fair Value Disclosures (Assets Measured at Fair Value on Nonrecurring Basis) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Nov. 30, 2021 | ||
Assets measured at fair value on a nonrecurring basis | ||||
Inventory Impairment Charges | $ 0 | $ (3,600) | ||
Fair Value, Nonrecurring [Member] | Level 3 | ||||
Assets measured at fair value on a nonrecurring basis | ||||
Pre-Impairment Value | 0 | $ 27,923 | ||
Inventory Impairment Charges | 0 | (9,903) | ||
Fair Value | [1] | $ 0 | $ 18,020 | |
[1] | Amounts represent the aggregate fair value for real estate assets impacted by inventory impairment charges during the applicable period, as of the date that the fair value measurements were made. The carrying value for these real estate assets may have subsequently increased or decreased from the fair value reflected due to activity that has occurred since the measurement date. |
Fair Value Disclosures (Fair Va
Fair Value Disclosures (Fair Value Hierarchy, Carrying Values, and Estimated Fair Values of Financial Instruments) (Details) - Level 2 - Senior Notes [Member] - USD ($) $ in Thousands | Feb. 28, 2022 | Nov. 30, 2021 | |
Carrying Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior notes | [1] | $ 1,680,021 | $ 1,679,700 |
Estimate of Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior notes | $ 1,726,050 | $ 1,796,500 | |
[1] | The carrying values for the senior notes, as presented, include unamortized debt issuance costs. Debt issuance costs are not factored into the estimated fair values of these notes. |
Commitments and Contingencies_2
Commitments and Contingencies (Narratives) (Details) $ in Thousands | 3 Months Ended | ||
Feb. 28, 2022USD ($)executivesclaim_filedhome | Nov. 30, 2021USD ($) | Nov. 30, 2016USD ($) | |
Loss Contingencies [Line Items] | |||
Minimum warranty on electrical and other building systems (in years) | 2 years | ||
Maximum warranty on electrical and other building systems (in years) | 5 years | ||
Warranty for other components of the home (in years) | 1 year | ||
Performance bonds | $ 1,150,000 | $ 1,110,000 | |
Letters of credit outstanding | $ 45,300 | 43,200 | |
Warranty for other components of a home (in years) | 1 year | ||
Cash deposits | $ 64,631 | 74,509 | |
Aggregate purchase price of land | 1,731,452 | 1,859,851 | |
Cost Method Investments, Original Cost | $ 1,800 | ||
Cost Method Investments, Number of Executives with Ownership Interests | executives | 16 | ||
Damages from Product Defects [Member] | |||
Loss Contingencies [Line Items] | |||
Structural warranty provided by the company (in years) | 10 years | ||
Minimum number of affected homes for construction defect claims | home | 2 | ||
Warranty Obligations [Member] | |||
Loss Contingencies [Line Items] | |||
Structural warranty provided by the company (in years) | 10 years | ||
Self Insurance [Member] | |||
Loss Contingencies [Line Items] | |||
Recoveries related to warranty and other claims | $ 57,000 | $ 57,800 | |
Northern California Townhome Community [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency Accrual | $ 25,000 | ||
Loss Contingency, Loss in Period | $ 12,000 | ||
Chapter 558 of the Florida Statutes [Member] | |||
Loss Contingencies [Line Items] | |||
Outstanding noticed claims | claim_filed | 554 |
Commitments and Contingencies_3
Commitments and Contingencies (Changes in the Warranty and Self-Insurance Liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | ||
Changes in the Warranty Liability | |||
Balance at beginning of period | $ 96,153 | $ 91,646 | |
Warranties issued | 7,890 | 7,457 | |
Payments | (6,577) | (6,416) | |
Balance at end of period | 97,466 | 92,687 | |
Movement In Self Insurance Reserve [Roll Forward] | |||
Balance at beginning of period | 189,131 | 194,180 | |
Self-insurance expense | 4,739 | 4,583 | |
Payments | (2,466) | (5,500) | |
Balance at end of period | 190,594 | 193,445 | |
Self Insurance [Member] | |||
Movement In Self Insurance Reserve [Roll Forward] | |||
Increase (Decrease) in Insurance Liabilities | [1] | $ (810) | $ 182 |
[1] | Represents net changes in estimated probable recoveries related to self-insurance, which are recorded in receivables, to present our self-insurance liability on a gross basis. |
Legal Matters (Details)
Legal Matters (Details) | 3 Months Ended |
Feb. 28, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Applicability and Impact of Environmental Laws | Pursuant to SEC rules, we will disclose any proceeding in which a governmental authority is a party and that arises under any federal, state or local provisions enacted or adopted regulating the discharge of materials into the environment or primarily for the purpose of protecting the environment only where we believe that such proceeding will result in monetary sanctions on us, exclusive of interest and costs, above $1.0 million or is otherwise material to our consolidated financial statements |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Beginning balance | $ 3,019,475 | $ 2,665,769 |
Net income | 134,257 | 97,051 |
Dividends on common stock | (14,130) | (14,064) |
Employee stock options/other | 2,538 | |
Stock awards | 0 | 0 |
Stock-based compensation | 6,867 | 5,572 |
Tax payments associated with stock-based compensation awards | 12,153 | 8,456 |
Ending balance | $ 3,134,316 | 2,748,184 |
Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Beginning balance | $ (226) | |
Grantor Stock Ownership Trust | ||
Beginning balance (in shares) | 6,705 | 7,124 |
Beginning balance | $ (72,718) | $ (77,265) |
Stock awards (in shares) | 419 | |
Stock awards | $ 4,547 | |
Ending balance (in shares) | 6,705 | 6,705 |
Ending balance | $ (72,718) | $ (72,718) |
Accumulated Other Comprehensive Income | ||
Beginning balance | (19,119) | (22,276) |
Ending balance | $ (19,119) | $ (22,276) |
Treasury Stock | ||
Beginning balance (in shares) | 5,785 | 1,107 |
Beginning balance | $ (217,383) | $ (27,761) |
Employee stock options/other (in shares) | 0 | |
Employee stock options/other | $ 0 | |
Stock awards (in shares) | 721 | 10 |
Stock awards | $ 27,249 | $ 240 |
Tax payments associated with stock-based compensation awards ( in shares) | (320) | (208) |
Tax payments associated with stock-based compensation awards | $ 12,153 | $ 8,456 |
Ending balance (in shares) | 5,384 | 1,305 |
Ending balance | $ (202,287) | $ (35,977) |
Paid-in Capital | ||
Beginning balance | 848,620 | 824,306 |
Employee stock options/other | 2,365 | |
Stock awards | (27,249) | (4,787) |
Stock-based compensation | 6,867 | 5,572 |
Ending balance | $ 828,238 | $ 827,456 |
Common Stock | ||
Beginning balance (in shares) | (100,711) | (99,869) |
Beginning balance | $ 100,711 | $ 99,869 |
Employee stock options/other (in shares) | (173) | |
Employee stock options/other | $ 173 | |
Stock awards (in shares) | 0 | 0 |
Stock awards | $ 0 | $ 0 |
Ending balance (in shares) | (100,711) | (100,042) |
Ending balance | $ 100,711 | $ 100,042 |
Retained Earnings [Member] | ||
Beginning balance | 2,379,364 | 1,868,896 |
Net income | 134,257 | 97,051 |
Dividends on common stock | (14,130) | (14,064) |
Ending balance | $ 2,499,491 | 1,951,657 |
Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
Beginning balance | $ (226) |
Stockholders' Equity (Narrative
Stockholders' Equity (Narratives) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 17, 2022 | Nov. 30, 2021 | Jul. 17, 2014 | |
Debt Instrument [Line Items] | |||||
Payment, Tax Withholding, Share-based Payment Arrangement | $ 12,153 | $ 8,456 | |||
Cash dividends declared per common share (in dollars per share) | $ 0.15 | $ 0.15 | |||
Dividend paid in each quarter (in dollars per share) | $ 0.15 | $ 0.15 | |||
Options outstanding (in shares) | 1,674,393 | 1,674,393 | |||
Shares Withheld to Pay Taxes [Member] | |||||
Debt Instrument [Line Items] | |||||
Common stock repurchased (in shares) | 319,815 | ||||
Payment, Tax Withholding, Share-based Payment Arrangement | $ 12,200 | ||||
July 2021 Stock Repurchase Program | |||||
Debt Instrument [Line Items] | |||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 331,400 | ||||
Director Plan SARs [Domain] | |||||
Debt Instrument [Line Items] | |||||
Number of common stock, authorized, approved under a board approved stock repurchase program (in shares) | 680,000 | ||||
2014 Equity Incentive Plan [Domain] | |||||
Debt Instrument [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 680,000 | ||||
Performance Shares [Member] | PSU 2018 [Domain] | |||||
Debt Instrument [Line Items] | |||||
Common Stock, Shares, Issued (in shares) | 674,677 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narratives) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Nov. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options outstanding (in shares) | 1,674,393 | 1,674,393 | |
Options exercisable at end of period (in dollars per share) | $ 15.56 | $ 15.56 | |
Weighted average remaining contractual life of stock options outstanding | 3 years 7 months 6 days | ||
Weighted average remaining contractual life of stock options exercisable | 3 years 7 months 6 days | ||
Aggregate intrinsic value of stock options exercisable | $ 38,600 | ||
Aggregate intrinsic value of stock options outstanding | $ 38,600 | ||
Options exercisable at end of period (in shares) | 1,674,393 | 1,674,393 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 15.56 | $ 15.56 | |
Equity Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 0 | ||
Stock-based compensation expense (income) associated with stock options, total | 0 | $ 0 | |
Restricted Stock and Performance Unit Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense (income) associated with stock options, total | $ 6,900 | $ 5,600 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Apr. 07, 2022 | Feb. 28, 2022 |
April 2022 Stock Repurchase Program | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Stock Repurchase Program, Authorized Amount | $ 300,000,000 | |
July 2021 Stock Repurchase Program | ||
Subsequent Event [Line Items] | ||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 331,400 | |
July 2021 Stock Repurchase Program | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 331,400 |