Cover
Cover - USD ($) | 12 Months Ended | |||
Nov. 30, 2022 | Dec. 31, 2022 | May 31, 2022 | Nov. 30, 2021 | |
Document Information [Line Items] | ||||
Document Type | 10-K | |||
Document Annual Report | true | |||
Document Period End Date | Nov. 30, 2022 | |||
Current Fiscal Year End Date | --11-30 | |||
Document Transition Report | false | |||
Entity File Number | 001-09195 | |||
Entity Registrant Name | KB HOME | |||
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 | |||
Entity Well-known Seasoned Issuer | Yes | |||
Entity Voluntary Filers | No | |||
Entity Current Reporting Status | Yes | |||
Entity Interactive Data Current | Yes | |||
Entity Filer Category | Large Accelerated Filer | |||
Entity Small Business | false | |||
Entity Emerging Growth Company | false | |||
ICFR Auditor Attestation Flag | true | |||
Entity Shell Company | false | |||
Entity Public Float | $ 3,237,609,721 | |||
Grantor stock ownership trust (in shares) | 6,705,247 | 6,705,247 | ||
Treasury stock (in shares) | 10,015,507 | 5,785,058 | ||
Entity Common Stock Shares Outstanding | 83,990,399 | |||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement for the 2023 Annual Meeting of Stockholders (incorporated into Part III). | |||
Entity Central Index Key | 0000795266 | |||
Amendment Flag | false | |||
Document Fiscal Year Focus | 2022 | |||
Document Fiscal Period Focus | FY | |||
Subsequent Event | Grantor Stock Ownership Trust | ||||
Document Information [Line Items] | ||||
Grantor stock ownership trust (in shares) | 6,705,247 | |||
Common Stock | ||||
Document Information [Line Items] | ||||
Title of 12(b) Security | Common Stock (par value $1.00 per share) | |||
Trading Symbol | KBH | |||
Security Exchange Name | NYSE | |||
Rights | ||||
Document Information [Line Items] | ||||
Title of 12(b) Security | Rights to Purchase Series A Participating Cumulative Preferred Stock | |||
No Trading Symbol Flag | true | |||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Nov. 30, 2022 | |
Auditor Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Los Angeles, California |
Auditor Firm ID | 42 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Revenues | $ 6,903,776 | $ 5,724,930 | $ 4,183,174 |
Equity in income (loss) of unconsolidated joint ventures | 19,934 | 23,184 | 33,628 |
Loss on early extinguishment of debt | (3,598) | (5,075) | 0 |
Total pretax income | 1,072,066 | 695,346 | 364,043 |
Income tax expense | (255,400) | (130,600) | (67,800) |
Net income | $ 816,666 | $ 564,746 | $ 296,243 |
Earnings per share: | |||
Basic (in dollars per share) | $ 9.35 | $ 6.22 | $ 3.26 |
Diluted (in dollars per share) | $ 9.09 | $ 6.01 | $ 3.13 |
Weighted average shares outstanding: | |||
Basic (in shares) | 86,861 | 90,401 | 90,464 |
Diluted (in shares) | 89,348 | 93,587 | 94,086 |
Homebuilding | |||
Revenues | $ 6,880,362 | $ 5,705,029 | $ 4,167,702 |
Construction and land costs | (5,213,343) | (4,469,311) | (3,380,451) |
Selling, general and administrative expenses | (629,645) | (574,376) | (470,779) |
Operating income | 1,037,374 | 661,342 | 316,472 |
Interest income | 704 | 1,049 | 2,554 |
Equity in income (loss) of unconsolidated joint ventures | (865) | (405) | 12,474 |
Loss on early extinguishment of debt | (3,598) | (5,075) | 0 |
Total pretax income | 1,033,615 | 656,911 | 331,500 |
Financial service | |||
Revenues | 23,414 | 19,901 | 15,472 |
Selling, general and administrative expenses | (5,762) | (5,055) | (4,083) |
Operating income | 17,652 | 14,846 | 11,389 |
Equity in income (loss) of unconsolidated joint ventures | 20,799 | 23,589 | 21,154 |
Total pretax income | $ 38,451 | $ 38,435 | $ 32,543 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 816,666 | $ 564,746 | $ 296,243 |
Net actuarial gain (loss) arising during the period | 17,463 | 2,664 | (8,412) |
Amortization of net actuarial loss | 1,090 | 1,575 | 963 |
Amortization of prior service cost | 0 | 86 | 425 |
Other comprehensive income (loss) before tax | 18,553 | 4,325 | (7,024) |
Income tax benefit (expense) related to items of other comprehensive income (loss) | (5,009) | (1,168) | 1,897 |
Other comprehensive income, net of tax | 13,544 | 3,157 | (5,127) |
Comprehensive income | $ 830,210 | $ 567,903 | $ 291,116 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 | |
Assets | |||
Cash and cash equivalents | $ 330,198 | $ 292,136 | |
Inventories | 5,543,176 | 4,802,829 | |
Property and equipment, net | 89,234 | 76,313 | |
Total assets | 6,651,930 | 5,835,918 | |
Liabilities and stockholders’ equity | |||
Accrued expenses and other liabilities | 736,971 | 756,905 | |
Notes payable | 1,838,511 | 1,685,027 | |
Stockholders’ equity: | |||
Preferred stock — $1.00 par value; 10,000,000 shares authorized; none issued | 0 | 0 | |
Common stock —$1.00 par value; 290,000,000 shares authorized at November 30, 2022 and 2021; 100,711,153 shares issued at November 30, 2022 and 2021 | 100,711 | 100,711 | |
Paid-in capital | 836,260 | 848,620 | |
Retained earnings | 3,143,578 | 2,379,364 | |
Accumulated other comprehensive loss | (5,575) | (19,119) | |
Grantor stock ownership trust, at cost: 6,705,247 shares at November 30, 2022 and 2021 | (72,718) | (72,718) | |
Treasury stock, at cost: 10,015,507 and 5,785,058 shares at November 30, 2022 and 2021, respectively | (341,461) | (217,383) | |
Total stockholders’ equity | 3,660,795 | 3,019,475 | |
Total liabilities and stockholders’ equity | $ 6,651,930 | $ 5,835,918 | |
Shares of common stock issued (in shares) | 100,711,153 | 100,711,153 | |
Grantor stock ownership trust (in shares) | 6,705,247 | 6,705,247 | |
Homebuilding | |||
Assets | |||
Cash and cash equivalents | $ 328,517 | $ 290,764 | |
Receivables | 322,767 | 304,191 | |
Inventories | 5,543,176 | 4,802,829 | |
Investments in unconsolidated joint ventures | 46,785 | 36,088 | |
Property and equipment, net | 89,234 | 76,313 | |
Deferred tax assets, net | 160,868 | 177,378 | |
Other assets | 101,051 | 104,153 | |
Total assets | 6,592,398 | 5,791,716 | |
Liabilities and stockholders’ equity | |||
Accounts payable | 412,525 | 371,826 | |
Accrued expenses and other liabilities | 736,971 | 756,905 | |
Notes payable | 1,838,511 | 1,685,027 | |
Total Homebuilding | 2,988,007 | 2,813,758 | |
Financial service | |||
Assets | |||
Cash and cash equivalents | 1,681 | 1,372 | |
Receivables | 3,475 | 2,166 | |
Investments in unconsolidated joint ventures | 26,678 | 16,317 | |
Other assets | [1] | 27,698 | 24,347 |
Total assets | 59,532 | 44,202 | |
Liabilities and stockholders’ equity | |||
Financial services | $ 3,128 | $ 2,685 | |
[1]Other assets at November 30, 2022 and 2021 included $27.6 million and $24.1 million, respectively, of contract assets for estimated future renewal commissions |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Nov. 30, 2022 | Nov. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 290,000,000 | 290,000,000 |
Common stock, shares issued (in shares) | 100,711,153 | 100,711,153 |
Grantor stock ownership trust (in shares) | 6,705,247 | 6,705,247 |
Treasury stock (in shares) | 10,015,507 | 5,785,058 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Grantor Stock Ownership Trust | Treasury Stock | Paid-in Capital | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Nov. 30, 2019 | 121,593,000 | (7,631,000) | |||||||
Treasury stock, beginning balance (in shares) at Nov. 30, 2019 | (24,356,000) | ||||||||
Beginning balance at Nov. 30, 2019 | $ 2,383,122 | $ 1,510 | $ 121,593 | $ (82,758) | $ (591,344) | $ 793,954 | $ 2,157,183 | $ 1,510 | $ (15,506) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Reclassification of stranded tax effects | 1,600 | 1,643 | (1,643) | ||||||
Net income | 296,243 | 296,243 | |||||||
Other comprehensive income (loss), net of tax | (5,127) | (5,127) | |||||||
Dividends on common stock | $ (38,065) | (38,065) | |||||||
Employee stock options/other (in shares) | 1,694,767 | 1,696,000 | 17,000 | ||||||
Employee stock options/other | $ 16,058 | $ 1,696 | $ 421 | 13,941 | |||||
Stock awards (in shares) | 68,000 | 507,000 | (15,000) | ||||||
Stock awards | $ 68 | $ 5,493 | $ (441) | (5,120) | |||||
Stock-based compensation | 21,531 | 21,531 | |||||||
Tax payments associated with stock-based compensation awards (in shares) | (241,000) | ||||||||
Tax payments associated with stock-based compensation awards | $ (9,503) | $ (9,503) | |||||||
Retirement of treasury stock (in shares) | (23,487,966) | (23,488,000) | 23,488,000 | ||||||
Retirement of treasury stock | $ (23,488) | $ 573,106 | (549,618) | ||||||
Ending balance (in shares) at Nov. 30, 2020 | 99,869,000 | (7,124,000) | |||||||
Treasury stock, ending balance (in shares) at Nov. 30, 2020 | (1,107,000) | ||||||||
Ending balance at Nov. 30, 2020 | $ 2,665,769 | $ (226) | $ 99,869 | $ (77,265) | $ (27,761) | 824,306 | 1,868,896 | $ (226) | (22,276) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 [Member] | ||||||||
Net income | $ 564,746 | 564,746 | |||||||
Other comprehensive income (loss), net of tax | 3,157 | 3,157 | |||||||
Dividends on common stock | $ (54,052) | (54,052) | |||||||
Employee stock options/other (in shares) | 788,321 | 798,000 | |||||||
Employee stock options/other | $ 11,689 | $ 798 | 10,891 | ||||||
Stock awards (in shares) | 44,000 | 419,000 | 199,000 | ||||||
Stock awards | $ 44 | $ 4,547 | $ 10,890 | (15,481) | |||||
Stock-based compensation | 28,904 | 28,904 | |||||||
Stock repurchases (in shares) | (4,669,000) | ||||||||
Stock repurchases | (188,175) | $ (188,175) | |||||||
Tax payments associated with stock-based compensation awards (in shares) | (208,000) | ||||||||
Tax payments associated with stock-based compensation awards | $ (12,337) | $ (12,337) | |||||||
Ending balance (in shares) at Nov. 30, 2021 | 100,711,000 | (6,705,000) | |||||||
Treasury stock, ending balance (in shares) at Nov. 30, 2021 | 5,785,058 | (5,785,000) | |||||||
Ending balance at Nov. 30, 2021 | $ 3,019,475 | $ 100,711 | $ (72,718) | $ (217,383) | 848,620 | 2,379,364 | (19,119) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 816,666 | 816,666 | |||||||
Other comprehensive income (loss), net of tax | 13,544 | 13,544 | |||||||
Dividends on common stock | $ (52,452) | (52,452) | |||||||
Employee stock options/other (in shares) | 0 | ||||||||
Stock awards (in shares) | 1,088,000 | ||||||||
Stock awards | $ 41,824 | (41,824) | |||||||
Stock-based compensation | $ 29,464 | 29,464 | |||||||
Stock repurchases (in shares) | (4,928,000) | ||||||||
Stock repurchases | (150,000) | $ (150,000) | |||||||
Tax payments associated with stock-based compensation awards (in shares) | (391,000) | ||||||||
Tax payments associated with stock-based compensation awards | $ (15,902) | $ (15,902) | |||||||
Ending balance (in shares) at Nov. 30, 2022 | 100,711,000 | (6,705,000) | |||||||
Treasury stock, ending balance (in shares) at Nov. 30, 2022 | 10,015,507 | (10,016,000) | |||||||
Ending balance at Nov. 30, 2022 | $ 3,660,795 | $ 100,711 | $ (72,718) | $ (341,461) | $ 836,260 | $ 3,143,578 | $ (5,575) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 816,666 | $ 564,746 | $ 296,243 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Equity in income of unconsolidated joint ventures | (19,934) | (23,184) | (33,628) |
Distributions of earnings from unconsolidated joint ventures | 11,038 | 18,511 | 35,649 |
Amortization of debt issuance costs and premiums | 2,322 | 2,852 | 2,498 |
Depreciation and amortization | 32,319 | 28,640 | 28,396 |
Deferred income taxes | 16,510 | 53,767 | 50,304 |
Loss on early extinguishment of debt | 3,598 | 5,075 | 0 |
Stock-based compensation | 29,464 | 28,904 | 21,531 |
Inventory impairments and land option contract abandonments | 37,301 | 11,953 | 28,669 |
Changes in assets and liabilities: | |||
Receivables | (19,885) | (32,014) | 59,257 |
Inventories | (785,557) | (897,750) | (183,233) |
Accounts payable, accrued expenses and other liabilities | 53,097 | 181,625 | 4,091 |
Other, net | 6,479 | 19,579 | 901 |
Net cash provided by (used in) operating activities | 183,418 | (37,296) | 310,678 |
Cash flows from investing activities: | |||
Contributions to unconsolidated joint ventures | (28,439) | (11,523) | (10,373) |
Return of investments in unconsolidated joint ventures | 1,900 | 12,838 | 12,651 |
Purchases of property and equipment, net | (45,234) | (39,399) | (28,841) |
Net cash used in investing activities | (71,773) | (38,084) | (26,563) |
Cash flows from financing activities: | |||
Proceeds from issuance of debt | 350,000 | 390,000 | 0 |
Repayment of senior notes | (703,598) | (455,075) | 0 |
Payment of issuance costs | (11,064) | (4,813) | 0 |
Borrowings under revolving credit facility | 1,685,000 | 340,000 | 0 |
Repayments under revolving credit facility | (1,535,000) | (340,000) | 0 |
Borrowings under senior unsecured term loan | 360,000 | 0 | 0 |
Payments on mortgages and land contracts due to land sellers and other loans | (567) | (2,250) | (24,934) |
Issuance of common stock under employee stock plans | 0 | 11,689 | 16,058 |
Stock repurchases | (150,000) | (188,175) | 0 |
Tax payments associated with stock-based compensation awards | (15,902) | (12,337) | (9,503) |
Payments of cash dividends | (52,452) | (54,052) | (38,065) |
Net cash used in financing activities | (73,583) | (315,013) | (56,444) |
Net increase (decrease) in cash and cash equivalents | 38,062 | (390,393) | 227,671 |
Cash and cash equivalents at beginning of year | 292,136 | 682,529 | 454,858 |
Cash and cash equivalents at end of year | $ 330,198 | $ 292,136 | $ 682,529 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Nov. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Operations. KB Home is a builder of attached and detached single-family residential homes, townhomes and condominiums. As of November 30, 2022, we conducted ongoing operations in Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, Texas and Washington. We also offer various insurance products to our homebuyers in the same markets as our homebuilding reporting segments, and provide title services in the majority of our markets located within our Southwest, Central and Southeast homebuilding reporting segments. We offer mortgage banking services, including mortgage loan originations, to our homebuyers indirectly through KBHS, which is an unconsolidated joint venture between us and a third party. Basis of Presentation. Our consolidated financial statements have been prepared in accordance with GAAP and include our accounts and those of the consolidated subsidiaries in which we have a controlling financial interest. All intercompany balances and transactions have been eliminated in consolidation. Investments in unconsolidated joint ventures in which we have less than a controlling financial interest are accounted for using the equity method. Impact of COVID-19 Pandemic on Consolidated Financial Statements. Since mid-March 2020, the COVID-19 pandemic and related 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 in 2020, 2021 and 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. In addition, we encountered delays related to state and municipal construction permitting, inspection and utility processes, which have been disrupted by key equipment shortages. All these factors to varying degrees, extended our construction cycle times, delayed home deliveries and community openings and raised our costs. These factors could also negatively affect our growth, margins and financial results in future periods and result in our recognizing charges for inventory impairments or land option contract abandonments, or both, related to our inventory assets. The impact of any or all of these, among other factors, could be material to our consolidated financial statements. In the 2020 second quarter, with the uncertainty surrounding the COVID-19 pandemic, and in prioritizing cash preservation and liquidity, we limited our land investments and curtailed our overhead expenditures, partly through workforce realignment and reductions. As a result, our selling, general and administrative expenses for 2020 included severance charges of $6.7 million. 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 $15.8 million at November 30, 2022 and $15.4 million at November 30, 2021. At November 30, 2022 and 2021, the majority of our cash equivalents was invested in interest-bearing bank deposit accounts. Receivables. We record receivables net of an allowance for doubtful accounts. This allowance for potential losses is established or maintained for expected uncollectible receivables. The allowance is estimated based on our evaluation of the receivables, taking into account historical collection experience, general economic conditions, specific credit risk of the counterparties and other relevant information. Property and Equipment and Depreciation. Property and equipment are recorded at cost and are depreciated using the straight-line method over their estimated useful lives as follows: computer software and equipment – two two three Homebuilding Operations. We recognize homebuilding revenue by applying the following steps in determining the timing and amount of revenue to recognize: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract, if applicable; and (5) recognize revenue when (or as) we satisfy a performance obligation. Our home sale transactions are made pursuant to contracts under which we typically have a single performance obligation to deliver a completed home to the homebuyer when closing conditions are met. Revenues from home sales are recognized when we have satisfied the performance obligation within the sales contract, which is generally when title to and possession of the home and the risks and rewards of ownership are transferred to the homebuyer on the closing date. Under our home sale contracts, we typically receive an initial cash deposit from the homebuyer at the time the sales contract is executed and receive the remaining consideration to which we are entitled, through a third-party escrow agent, at closing. Customer deposits related to sold but undelivered homes are included in accrued expenses and other liabilities. Concurrent with the recognition of revenues in our consolidated statements of operations, sales incentives in the form of price concessions on the selling price of a home are recorded as a reduction of revenues. The costs of sales incentives in the form of free or discounted products or services provided to homebuyers, including option upgrades and closing cost allowances, are reflected as construction and land costs because such incentives are identified in our home sale contracts with homebuyers as an intrinsic part of our single performance obligation to deliver and transfer title to their home for the transaction price stated in the contracts. Sales incentives that we may provide in the form of closing cost allowances are immaterial to the related revenues. Cash proceeds from home sale closings held by third-party escrow agents for our benefit, typically for less than five days, are considered deposits in-transit and classified as cash. Land sale transactions are made pursuant to contracts under which we typically have a performance obligation(s) to deliver specified land parcels to the buyer when closing conditions are met. We evaluate each land sale contract to determine our performance obligation(s) under the contract, including whether we have a distinct promise to perform post-closing land development work that is material within the context of the contract, and use objective criteria to determine our completion of the applicable performance obligation(s), whether at a point in time or over time. Revenues from land sales are recognized when we have satisfied the performance obligation(s) within the sales contract, which is generally when title to and possession of the land and the risks and rewards of ownership are transferred to the land buyer on the closing date. Under our land sale contracts, we typically receive an initial cash deposit from the buyer at the time the contract is executed and receive the remaining consideration to which we are entitled, through a third-party escrow agent, at closing. In the limited circumstances where we provide financing to the land buyer, we determine that collectability of the receivable is reasonably assured before we recognize revenue. In instances where we have a distinct and material performance obligation(s) within the context of a land sale contract to perform land development work after the closing date, a portion of the transaction price under the contract is allocated to such performance obligation(s) and is recognized as revenue over time based upon our estimated progress toward the satisfaction of the performance obligation(s). We generally measure our progress based on our costs incurred relative to the total costs expected to satisfy the performance obligation(s). While the payment terms for such a performance obligation(s) vary, we generally receive the final payment when we have completed our land development work to the specifications detailed in the applicable land sale contract and it has been accepted by the land buyer. Homebuilding revenues include forfeited deposits, which occur when home sale or land sale contracts that include a nonrefundable deposit are cancelled. Revenues from forfeited deposits are immaterial. Within our homebuilding operations, substantially all of our contracts with customers and the related performance obligations have an original expected duration of one year or less. Construction and land costs are comprised of direct and allocated costs, including estimated future costs for the limited warranty we provide on our homes, and certain amenities within a community. Land acquisition, land development and other common costs are generally allocated on a relative fair value basis to the homes or lots within the applicable community or land parcel. Land acquisition and land development costs include related interest and real estate taxes. Disaggregation of Revenues. Our homebuilding operations accounted for 99.7% of our total revenues for each of the years ended November 30, 2022 and 2021, with most of those revenues generated from home sale contracts with customers. Due to the nature of our revenue-generating activities, we believe the disaggregation of revenues as reported in our consolidated statements of operations, and as disclosed by homebuilding reporting segment in Note 2 – Segment Information and for our financial services reporting segment in Note 3 – Financial Services, fairly depicts how the nature, amount, timing and uncertainty of cash flows are affected by economic factors. Inventories . Housing and land inventories are stated at cost, unless the carrying value is determined not to be recoverable, in which case the affected inventories are written down to fair value or fair value less associated costs to sell. Real estate assets, such as our housing and land inventories, are tested for recoverability whenever events or changes in circumstances indicate that their carrying value may not be recoverable. Recoverability is measured by comparing the carrying value of an asset to the undiscounted future net cash flows expected to be generated by the asset. These impairment evaluations are significantly impacted by estimates for the amounts and timing of future revenues, costs and expenses, and other factors. If the carrying value of a real estate asset is determined not to be recoverable, the impairment charge to be recognized is measured by the amount by which the carrying value of the affected asset exceeds its estimated fair value. For land held for sale, if the fair value less associated costs to sell exceeds the asset’s carrying value, no impairment charge is recognized. Capitalized Interest. 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. Fair Value Measurements. Fair value measurements are used for inventories on a nonrecurring basis when events and circumstances indicate that their carrying value is not recoverable. For these real estate assets, fair value is determined based on the estimated future net cash flows discounted for inherent risk associated with each such asset, or other valuation techniques. Our financial instruments consist of cash and cash equivalents, corporate-owned life insurance, outstanding borrowings under the Credit Facility and the Term Loan, senior notes, and mortgages and land contracts due to land sellers and other loans. Fair value measurements of financial instruments are determined by various market data and other valuation techniques as appropriate. When available, we use quoted market prices in active markets to determine fair value. Financial Services Operations. Our financial services reporting segment, which includes the operations of KB HOME Mortgage Company, generates revenues primarily from insurance commissions and title services. Revenues from title services are recognized when policies are issued, which generally occurs at the time each applicable home sale is closed. We receive commissions from various third-party insurance carriers for arranging for the carriers to provide homeowner and other insurance policies for our homebuyers that elect to obtain such coverage. In addition, each time a homebuyer renews their insurance policy with the insurance carrier, we receive a renewal commission. Revenues from insurance commissions are recognized when the insurance carrier issues an initial insurance policy to our homebuyer, which generally occurs at the time each applicable home sale is closed. As our performance obligations for policy renewal commissions are satisfied upon issuance of the initial insurance policy, insurance commissions for renewals are considered variable consideration. Accordingly, we estimate the probable future renewal commissions when an initial policy is issued and record a corresponding contract asset and insurance commission revenues. We estimate the amount of variable consideration based on historical renewal trends and constrain the estimate such that it is probable that a significant reversal of cumulative recognized revenue will not occur. We also consider the likelihood and magnitude of a potential future reversal of revenue and update our assessment at the end of each reporting period. The contract assets for estimated future renewal commissions are included in other assets within our financial services reporting segment. Warranty Costs. We provide a limited warranty on all of our homes. 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 and adjust the amount as necessary based on our assessment. Our warranty liability is presented on a gross basis for all years 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. Self-Insurance. We self-insure a portion of our overall risk through the use of a captive insurance subsidiary. We record liabilities based on the estimated costs required to cover reported claims, claims incurred but not yet reported, and claim adjustment expenses. These estimated costs are based on an actuarial analysis of our historical claims and expense data, as well as industry data. Our self-insurance liability is presented on a gross basis for all years without consideration of insurance recoveries and amounts we have paid on behalf of and expect to recover from other parties, if any. Estimates of insurance 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. Community Sales Office and Other Marketing- and Model Home-Related Costs. Community sales office and other marketing- and model home-related costs are either recorded as inventories, capitalized as property and equipment, or expensed to selling, general and administrative expenses as incurred. Costs related to the construction of a model home, inclusive of upgrades that will be sold as part of the home, are recorded as inventories and recognized as construction and land costs when the model home is delivered to a homebuyer. Costs to furnish and ready a model home or on-site community sales facility that will not be sold as part of the model home, such as costs for model furnishings, community sales office and model complex grounds, sales office construction and sales office furniture and equipment, are capitalized as property and equipment under “model furnishings and sales office improvements.” Model furnishings and sales office improvements are depreciated to selling, general and administrative expenses over their estimated useful lives. Other costs related to the marketing of a community, removing the on-site community sales facility and readying a completed (model) home for sale are expensed to selling, general and administrative expenses as incurred. Advertising Costs. We expense advertising costs as incurred. We incurred advertising costs of $37.1 million in 2022, $28.0 million in 2021 and $29.3 million in 2020. Legal Fees. Legal fees associated with litigation and similar proceedings that are not expected to provide a benefit in future periods are generally expensed as incurred. Legal fees associated with land acquisition and development and other activities that are expected to provide a benefit in future periods are capitalized to inventories in our consolidated balance sheets as incurred. We expensed legal fees of $10.6 million in 2022, $11.5 million in 2021 and $11.6 million in 2020. Stock-Based Compensation. We measure and recognize compensation expense associated with our grant of equity-based awards at an amount equal to the fair value of share-based payments granted under compensation arrangements over the vesting period. We estimate the fair value of stock options granted using the Black-Scholes option-pricing model with assumptions based primarily on historical data. We estimate the fair value of other equity-based awards using the closing price of our common stock on the grant date. For PSUs, we recognize compensation expense ratably over the vesting period when it is probable that stated performance targets will be achieved and record cumulative adjustments in the period in which estimates change. We account for forfeitures of equity-based awards as they occur. Income Taxes. The provision for, or benefit from, income taxes is calculated using the asset and liability method, under which deferred tax assets and liabilities are recorded based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are evaluated on a quarterly basis to determine if adjustments to the valuation allowance are required. This evaluation is 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. 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 deferred tax assets in our consolidated balance sheets depends on applicable income tax rates. Accumulated Other Comprehensive Loss. The accumulated balances of other comprehensive loss in the consolidated balance sheets as of November 30, 2022 and 2021 were comprised solely of adjustments recorded directly to accumulated other comprehensive loss related to our benefit plan obligations. Such adjustments are made annually as of November 30, when our benefit plan obligations are remeasured. Earnings Per Share. 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 November 30, 2022, 2021 or 2020. Adoption of New Accounting Pronouncements . In February 2016, the FASB issued Accounting Standards Update No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), which requires leases with original lease terms of more than 12 months to be recorded on the balance sheet. On December 1, 2019, we adopted ASU 2016-02 and its related amendments (collectively, “ASC 842”) using the modified retrospective method. The adoption of ASC 842 resulted in our recording lease right-of-use assets and lease liabilities of $31.2 million on our consolidated balance sheet as of December 1, 2019. Lease right-of-use assets are classified within other assets accrued expenses and other liabilities In February 2018, the FASB issued Accounting Standards Update No. 2018-02, “Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”), which allows a reclassification from accumulated other comprehensive income (loss) to retained earnings for stranded tax effects resulting from the 2019 Tax Cuts and Jobs Act (“TCJA”), and requires certain disclosures about stranded tax effects. We adopted ASU 2018-02 effective December 1, 2019 and elected to reclassify the income tax effects of the TCJA from accumulated other comprehensive loss to retained earnings, which resulted in an increase of $1.6 million to both retained earnings and accumulated other comprehensive loss, with no impact on total stockholders’ equity. In June 2016, the FASB issued Accounting Standards Update No. 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which changes the impairment model for most financial assets and certain other instruments from an incurred loss approach to a new expected credit loss methodology. On December 1, 2020, we adopted ASU 2016-13 using the modified retrospective method and recorded a cumulative effect adjustment to decrease beginning retained earnings by $.2 million, net of tax, to establish an allowance for credit losses for certain receivables on our consolidated balance sheet. The adoption of ASU 2016-13 did not materially impact our consolidated statements of operations or cash flows. 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 2021-01, “Reference Rate Reform (Topic 848): Scope” (“ASU 2021-01”), which clarified the scope and application of the original guidance. We are currently evaluating the potential impact of adopting ASU 2020-04 and ASU 2021-01, but do not expect it to have a material impact on our consolidated financial statements. Reclassifications. Certain amounts in our consolidated financial statements of prior years have been reclassified to conform to the current period presentation. |
Segment Information
Segment Information | 12 Months Ended |
Nov. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information An operating segment is defined as a component of an enterprise for which separate financial information is available and for which segment results are evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. We have identified each of our homebuilding divisions as an operating segment. Our homebuilding operating segments have been aggregated into four homebuilding reporting segments based primarily on similarities in economic and geographic characteristics, product types, regulatory environments, methods used to sell and construct homes and land acquisition characteristics. We also have one financial services reporting segment. Management evaluates segment performance primarily based on segment pretax results. As of November 30, 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 segment earns revenues primarily from insurance commissions and from the provision of title services. We offer mortgage banking services, including mortgage loan originations, to our homebuyers indirectly through KBHS, our unconsolidated joint venture with GR Alliance. We and GR Alliance each have a 50.0% ownership interest, with GR Alliance providing management oversight of KBHS’ operations. The financial services reporting segment is separately reported in our consolidated financial statements. Corporate and other is a non-operating segment that develops and oversees the implementation of company-wide strategic initiatives and provides support to our reporting segments by centralizing certain administrative functions. Corporate management is responsible for, among other things, evaluating and selecting the geographic markets in which we operate, consistent with our overall business strategy; allocating capital resources to markets for land acquisition and development activities; making major personnel decisions related to employee compensation and benefits; and monitoring the financial and operational performance of our divisions. Corporate and other includes general and administrative expenses related to operating our corporate headquarters. A portion of the expenses incurred by Corporate and other is allocated to our homebuilding reporting segments. Our reporting segments follow the same accounting policies used for our consolidated financial statements as described in Note 1 – Summary of Significant Accounting Policies. 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): Years Ended November 30, 2022 2021 2020 Revenues: West Coast $ 3,050,506 $ 2,552,382 $ 1,748,582 Southwest 1,110,045 965,139 796,810 Central 1,749,231 1,503,857 1,192,869 Southeast 970,580 683,651 429,441 Total $ 6,880,362 $ 5,705,029 $ 4,167,702 Pretax income (loss): West Coast $ 519,524 $ 345,714 $ 151,039 Southwest 238,143 186,351 133,386 Central 272,002 200,159 128,802 Southeast 152,178 77,663 22,950 Corporate and other (148,232) (152,976) (104,677) Total $ 1,033,615 $ 656,911 $ 331,500 Equity in income (loss) of unconsolidated joint ventures: West Coast $ (612) $ 62 $ 12,972 Southwest (249) (466) (497) Central — — — Southeast (4) (1) (1) Total $ (865) $ (405) $ 12,474 Inventory impairment and land option contract abandonment charges: West Coast $ 27,354 $ 11,046 $ 21,941 Southwest 900 536 570 Central 3,318 131 5,520 Southeast 5,729 240 638 Total $ 37,301 $ 11,953 $ 28,669 November 30, 2022 2021 Inventories: West Coast $ 2,425,141 $ 2,300,096 Southwest 993,059 875,438 Central 1,278,420 995,811 Southeast 846,556 631,484 Total $ 5,543,176 $ 4,802,829 November 30, 2022 2021 Investments in unconsolidated joint ventures: West Coast $ 41,597 $ 33,576 Southwest 2,680 — Central — — Southeast 2,508 2,512 Total $ 46,785 $ 36,088 Assets: West Coast $ 2,631,598 $ 2,520,374 Southwest 1,074,912 938,300 Central 1,493,486 1,168,242 Southeast 929,208 684,752 Corporate and other 463,194 480,048 Total $ 6,592,398 $ 5,791,716 |
Financial Services
Financial Services | 12 Months Ended |
Nov. 30, 2022 | |
Segment Reporting [Abstract] | |
Financial Services | Financial Services The following tables present financial information relating to our financial services reporting segment (in thousands): Years Ended November 30, 2022 2021 2020 Revenues Insurance commissions $ 12,823 $ 10,486 $ 8,589 Title services 10,572 9,415 6,883 Other 19 — — Total 23,414 19,901 15,472 Expenses General and administrative (5,762) (5,055) (4,083) Operating income 17,652 14,846 11,389 Equity in income of unconsolidated joint ventures 20,799 23,589 21,154 Pretax income $ 38,451 $ 38,435 $ 32,543 November 30, 2022 2021 Assets Cash and cash equivalents $ 1,681 $ 1,372 Receivables 3,475 2,166 Investments in unconsolidated joint ventures 26,678 16,317 Other assets (a) 27,698 24,347 Total assets $ 59,532 $ 44,202 Liabilities Accounts payable and accrued expenses $ 3,128 $ 2,685 Total liabilities $ 3,128 $ 2,685 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Nov. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic and diluted earnings per share were calculated as follows (in thousands, except per share amounts): Years Ended November 30, 2022 2021 2020 Numerator: Net income $ 816,666 $ 564,746 $ 296,243 Less: Distributed earnings allocated to nonvested restricted stock (268) (253) (197) Less: Undistributed earnings allocated to nonvested restricted stock (3,904) (2,366) (1,329) Numerator for basic earnings per share 812,494 562,127 294,717 Effect of dilutive securities: Add: Undistributed earnings allocated to nonvested restricted stock 3,904 2,366 1,329 Less: Undistributed earnings reallocated to nonvested restricted stock (3,796) (2,286) (1,278) Numerator for diluted earnings per share $ 812,602 $ 562,207 $ 294,768 Denominator: Weighted average shares outstanding — basic 86,861 90,401 90,464 Effect of dilutive securities: Share-based payments 2,487 3,186 3,622 Weighted average shares outstanding — diluted 89,348 93,587 94,086 Basic earnings per share $ 9.35 $ 6.22 $ 3.26 Diluted earnings per share $ 9.09 $ 6.01 $ 3.13 |
Receivables
Receivables | 12 Months Ended |
Nov. 30, 2022 | |
Receivables [Abstract] | |
Receivables | Receivables Receivables consisted of the following (in thousands): November 30, 2022 2021 Due from utility companies, improvement districts and municipalities (a) $ 181,443 $ 151,284 Recoveries related to self-insurance and other legal claims 76,581 95,063 Refundable deposits and bonds 17,610 13,681 Other 52,201 49,359 Subtotal 327,835 309,387 Allowance for doubtful accounts (5,068) (5,196) Total $ 322,767 $ 304,191 (a) These receivables typically relate to infrastructure improvements we make with respect to our communities. We are generally reimbursed for the cost of such improvements when they are accepted by the utility company, improvement district or municipality, or after certain events occur, depending on the terms of the applicable agreements. These events may include, but are not limited to, the connection of utilities or the issuance of bonds by the respective improvement districts or municipalities. |
Inventories
Inventories | 12 Months Ended |
Nov. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in thousands): November 30, 2022 2021 Homes completed or under construction $ 2,414,675 $ 2,103,038 Land under development 3,128,501 2,699,791 Total $ 5,543,176 $ 4,802,829 Homes completed or under construction is comprised of costs associated with homes completed or in various stages of construction and includes direct construction and related land acquisition and land development costs. Land under development primarily consists of land acquisition and land development costs. Land development costs include capitalized interest and real estate taxes. When home construction begins, the associated land acquisition and land development costs are included in homes under construction. Land under development at November 30, 2022 and 2021 included land held for future development of $10.2 million and $44.6 million, respectively. Land held for future development principally relates to land where development activity has been suspended or has not yet begun but is expected to occur in the future. These assets are generally located in submarkets where conditions do not presently support further investment or development, or are subject to a building permit moratorium or regulatory restrictions, or are portions of larger land parcels that we plan to build out over several years and/or that have not yet been entitled. At November 30, 2022 and 2021, land under development also included land held for sale of $11.4 million and $.6 million, respectively. Our interest costs were as follows (in thousands): Years Ended November 30, 2022 2021 2020 Capitalized interest at beginning of year $ 161,119 $ 190,113 $ 195,738 Interest incurred 120,859 120,514 124,147 Interest amortized to construction and land costs (a) (136,484) (149,508) (129,772) Capitalized interest at end of year $ 145,494 $ 161,119 $ 190,113 (a) Interest amortized to construction and land costs for the years ended November 30, 2021 and 2020 included nominal amounts related to land sales during the periods. |
Inventory Impairments and Land
Inventory Impairments and Land Option Contract Abandonments | 12 Months Ended |
Nov. 30, 2022 | |
Inventory Impairments and Land Option Contract Abandonments [Abstract] | |
Inventory Impairments and Land Option Contract Abandonments | Inventory Impairments and Land Option Contract Abandonments Each community or land parcel in our owned inventory is assessed to determine if indicators of potential impairment exist. Impairment indicators are assessed separately for each community or land parcel on a quarterly basis and include, but are not limited to, the following: significant decreases in net orders, average selling prices, volume of homes delivered, gross profit margins on homes delivered or projected gross profit margins on homes in backlog or future deliveries; significant increases in budgeted land development and home construction costs or cancellation rates; or projected losses on expected future land sales. If indicators of potential impairment exist for a community or land parcel, the identified asset is evaluated for recoverability. We evaluated five, one and 11 communities or land parcels for recoverability as of November 30, 2022, 2021 and 2020, respectively. The carrying values of those communities or land parcels evaluated as of November 30, 2022, 2021 and 2020 were $118.7 million, $29.9 million and $123.4 million, respectively. In addition, we evaluated land held for future development for recoverability as of November 30, 2022, 2021 and 2020. Inventory impairment charges are included in construction and land costs in our consolidated statements of operations. When an indicator of potential impairment is identified for a community or land parcel, we test the asset for recoverability by comparing the carrying value of the asset to the undiscounted future net cash flows expected to be generated by the asset. The undiscounted future net cash flows are impacted by then-current conditions and trends in the market in which the asset is located as well as factors known to us at the time the cash flows are calculated. These factors may include recent trends in our orders, backlog, cancellation rates and volume of homes delivered, as well as our expectations related to the following: product offerings; market supply and demand, including estimated average selling prices and related price appreciation; and land development, home construction and overhead costs to be incurred and related cost inflation. With respect to the year ended November 30, 2022, these expectations considered the weakening in U.S. housing demand in the year’s second half, rising interest rates, elevated inflation levels, and significant year-over-year decreases in our net orders per community in the 2022 third and fourth quarters, driven in part by a substantial increase in cancellations. We also considered our lower year-end backlog, both in number of homes and value; estimated average selling prices and housing gross profit margins based on the current and anticipated conditions in the markets where assessed assets are located; and ongoing supply-chain disruptions and delays with respect to state and municipal permitting, inspection and utility processes on our construction cycle times. Based on these recoverability considerations, we recognized inventory impairment charges for certain inventory assets in the 2022 fourth quarter, as described below. With respect to the year ended November 30, 2021, our expectations considered the year-over-year increases in our overall average net orders per community, backlog levels, homes delivered and housing gross profit margin during the period as well as our experience that conditions in the markets where assessed assets were located were relatively stable or improved, with no significant deterioration identified or projected, as to revenue or cost drivers that would prevent or otherwise impact recoverability. Our inventory is assessed for potential impairment on a quarterly basis, and the assumptions used are reviewed and adjusted, as necessary, to reflect the market conditions and trends and our expectations at the time each assessment is performed. Given the inherent challenges and uncertainties in forecasting future results, our inventory assessments at the time they are made take into consideration whether a community or land parcel is active, meaning whether it is open for sales and/or undergoing development, or whether it is being held for future development or held for sale. Due to the short-term nature of active communities and land held for sale, as compared to land held for future development, our inventory assessments generally assume the continuation of then-current market conditions, subject to identifying information suggesting significant sustained changes in such conditions. Our assessments of active communities, at the time made, generally anticipate net orders, average selling prices, volume of homes delivered and costs for land development and home construction to continue at or near then-current levels through the particular asset’s estimated remaining life. Inventory assessments for our land held for future development consider then-current market conditions as well as subjective forecasts regarding the timing and costs of land development and home construction and related cost inflation; the product(s) to be offered; and the net orders, volume of homes delivered, and selling prices and related price appreciation of the offered product(s) when an associated community is anticipated to open for sales. We evaluate various factors to develop these forecasts, including the availability of and demand for homes and finished lots within the relevant marketplace; historical, current and expected future sales trends for the marketplace; and third-party data, if available. The estimates, expectations and assumptions used in each of our inventory assessments are specific to each community or land parcel based on what we believe are reasonable forecasts for their particular performance, and may vary among communities or land parcels and may vary over time. 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. Inputs used in our calculation of estimated discounted future net cash flows are specific to each affected real estate asset and are based on our expectations for each such asset as of the applicable measurement date, including, among others, expectations related to average selling prices and volume of homes delivered. The discount rates we used were impacted by one or more of the following at the time the calculation was made: the risk-free rate of return; expected risk premium based on estimated land development, home construction and delivery timelines; market risk from potential future price erosion; cost uncertainty due to land development or home construction cost increases; and other risks specific to the asset or conditions in the market in which the asset is located. 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. The following table summarizes ranges for significant quantitative unobservable inputs we utilized in our fair value measurements with respect to impaired communities, other than land held for sale, written down to fair value during the years presented: Years Ended November 30, Unobservable Input (a) 2022 2021 2020 Average selling price $475,500 - $1,076,200 $471,000 - $949,400 $301,600 - $1,127,100 Deliveries per month 2 - 4 4 - 5 1 - 4 Discount rate 17% - 21% 18% - 19% 17% - 18% (a) Ranges of inputs presented primarily reflect differences between the housing markets where each impacted community is located, rather than fluctuations in prevailing market conditions. Based on the results of our evaluations, we recognized inventory impairment charges of $24.1 million in 2022 related to four communities with a post-impairment fair value of $41.3 million. In 2021, we recognized inventory impairment charges of $9.9 million related to two communities with a post-impairment fair value of $18.0 million. In 2020, we recognized inventory impairment charges of $22.7 million related to 10 communities with a post-impairment fair value of $46.5 million. The impairment charges in 2022, 2021 and 2020 reflected our decisions to make changes in our operational strategies aimed at more quickly monetizing our investment in certain communities, mainly by accelerating the overall pace for selling, building and delivering homes therein, including communities on land previously held for future development. If we change our strategy or if there are changes in market conditions for any given asset, it is possible that we may recognize additional inventory impairment charges. As of November 30, 2022, the aggregate carrying value of our inventory that had been impacted by inventory impairment charges was $102.9 million, representing eight 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 to determine whether it continues to meet our investment return standards. Assessments are made separately for each optioned land parcel on a quarterly basis and are affected by the following factors relative to the market in which the asset is located, among others: current and/or anticipated net orders, average selling prices and volume of homes delivered; estimated land development and home construction costs; and projected profitability on expected future housing or land sales. 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 $13.2 million in 2022, $2.1 million in 2021 and $5.9 million in 2020. Land option contract abandonment charges are included in construction and land costs in our consolidated statements of operations. The estimated remaining life of each community or land parcel in our inventory depends on various factors, such as the total number of lots remaining; the expected timeline to acquire and entitle land and develop lots to build homes; the anticipated future net order and cancellation rates; and the expected timeline to build and deliver homes sold. While it is difficult to determine a precise timeframe for any particular inventory asset, based on current market conditions and expected delivery timelines, we estimate our inventory assets’ remaining operating lives to range generally from one year to in excess of 10 years, and expect to realize, on an overall basis, the majority of our inventory balance as of November 30, 2022 within five years. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Nov. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [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 November 30, 2022 and 2021 was a VIE, but we were not the primary beneficiary of the VIE. Therefore, all of our joint ventures at November 30, 2022 and 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. The use of these contracts generally allows us to reduce the market risks associated with direct land ownership and development, and reduce our capital and financial commitments, including interest and other carrying costs. Under these contracts, which generally do not contain provisions requiring our specific performance, 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. In determining whether we are the primary beneficiary, we consider, among other things, whether we have the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance. Such activities would include, among other things, determining or limiting the scope or purpose of the VIE, selling or transferring property owned or controlled by the VIE, or arranging financing for the VIE. As a result of our analyses, we determined that as of November 30, 2022 and 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): November 30, 2022 November 30, 2021 Cash Aggregate Cash Aggregate Unconsolidated VIEs $ 22,399 $ 635,502 $ 38,333 $ 1,093,669 Other land option contracts and other similar contracts 29,451 529,430 36,176 766,182 Total $ 51,850 $ 1,164,932 $ 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 $33.1 million at November 30, 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. 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). In making this determination with respect to a land option contract, we consider the non-refundable deposit(s) we have made and any non-reimbursable expenditures we have incurred for land improvement activities or other items up to the assessment date; additional costs associated with abandoning the contract; and our commitments, if any, to incur non-reimbursable costs associated with the contract. 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 $5.1 million at November 30, 2022 and $26.5 million at November 30, 2021. |
Investments in Unconsolidated J
Investments in Unconsolidated Joint Ventures | 12 Months Ended |
Nov. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Joint Ventures | Investments in Unconsolidated Joint Ventures Homebuilding. 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. Our partners in these unconsolidated joint ventures are unrelated homebuilders, and/or land developers and other real estate entities, or commercial enterprises. These investments are designed primarily to reduce market and development risks and to increase the number of lots we own or control. In some instances, participating in unconsolidated joint ventures has enabled us to acquire and develop land that we might not otherwise have had access to due to a project’s size, financing needs, duration of development or other circumstances. While we consider our participation in unconsolidated joint ventures as potentially beneficial to our homebuilding activities, we do not view such participation as essential. For distributions we receive from these unconsolidated joint ventures, we have elected to use the cumulative earnings approach for our consolidated statements of cash flows. Under the cumulative earnings approach, distributions up to the amount of cumulative equity in earnings recognized are treated as returns on investment within operating cash flows and those in excess of that amount are treated as returns of investment within investing cash flows. We typically have obtained rights to acquire portions of the land held by the unconsolidated joint ventures in which we currently participate. When an unconsolidated joint venture sells land to our homebuilding operations, we defer recognition of our share of such unconsolidated joint venture’s earnings (losses) until we recognize revenues on the corresponding home sale, which is generally when title to and possession of the home and the risks and rewards of ownership are transferred to the homebuyer on the closing date. At that time, we account for the earnings (losses) as a reduction (increase) to the cost of purchasing the land from the unconsolidated joint venture. We defer recognition of our share of such unconsolidated joint venture losses only to the extent profits are to be generated from the sale of the home to a homebuyer. We share in the earnings (losses) of these unconsolidated joint ventures generally in accordance with our respective equity interests. In some instances, we recognize earnings (losses) related to our investment in an unconsolidated joint venture that differ from our equity interest in the unconsolidated joint venture. This typically arises from our deferral of the unconsolidated joint venture’s earnings (losses) from land sales to us, or other items. We had investments in six unconsolidated joint ventures as of November 30, 2022 and 2021 and five unconsolidated joint ventures as of November 30, 2020. The following table presents combined condensed information from the statements of operations for our homebuilding unconsolidated joint ventures (in thousands): Years Ended November 30, 2022 2021 2020 Revenues $ 5,251 $ 14,818 $ 127,270 Construction and land costs (3,875) (12,398) (93,162) Other expenses, net (2,935) (2,640) (8,850) Income (loss) $ (1,559) $ (220) $ 25,258 The combined revenues and construction and land costs for 2021 and 2020 included the results of an unconsolidated joint venture in California, which delivered its last home in the 2021 second quarter. For the year ended November 30, 2022, combined revenues and construction and land costs were generated from land sales. The following table presents combined condensed balance sheet information for our homebuilding unconsolidated joint ventures (in thousands): November 30, 2022 2021 Assets Cash $ 14,066 $ 15,731 Receivables 3,394 795 Inventories 114,465 64,034 Other assets 633 50 Total assets $ 132,558 $ 80,610 Liabilities and equity Accounts payable and other liabilities $ 8,369 $ 12,285 Notes payable (a) 34,396 — Equity 89,793 68,325 Total liabilities and equity $ 132,558 $ 80,610 (a) As of November 30, 2022, one of our unconsolidated joint ventures had borrowings outstanding under a revolving line of credit it entered into with a third-party lender in April 2022 to finance its land acquisition, development and construction activities. Borrowings under this line of credit, which has a maximum commitment of $62.0 million, are secured by the underlying property and related project assets. The line of credit is scheduled to mature on April 19, 2026, unless extended or terminated pursuant to its applicable terms. None of our other unconsolidated joint ventures had outstanding debt at November 30, 2022 or 2021. We provide certain guarantees and indemnities to the lender in connection with the above-described revolving line of credit, including a guaranty of interest and carry costs; a guaranty to complete the construction of phases of the improvements for the project as such phases are commenced; a guaranty against losses suffered due to certain bad acts or failures to act by the unconsolidated joint venture or its partners; and an indemnity from environmental issues. Except to the extent related to the foregoing guarantees and indemnities, we do not have a guaranty or any other obligation to repay borrowings under the line of credit or to support the value of the underlying collateral. However, various financial and non-financial covenants apply under the line of credit and with respect to the related guaranty and indemnity obligations, and a failure to comply with such covenants could result in a default and cause the lender to seek to enforce such guaranty and indemnity obligations. As of the date of this report, we were in compliance with the relevant covenants. We do not believe that our existing exposure under our guaranty and indemnity obligations related to outstanding borrowings under the line of credit is material to our consolidated financial statements. Financial Services. The following table presents combined condensed information from the statements of operations for our financial services unconsolidated joint ventures, primarily comprised of KBHS (in thousands): Years Ended November 30, 2022 2021 2020 Revenues $ 115,173 $ 126,398 $ 108,417 Expenses (73,573) (79,221) (66,109) Income $ 41,600 $ 47,177 $ 42,308 Revenues are primarily generated from fees earned on mortgage loan originations, interest earned for the period loans are held by KBHS, and gains on the sales of mortgage loans held for sale. Gains on the sales of mortgage loans held for sale include the realized and unrealized gains and losses associated with changes in the fair value of such loans and any related derivative financial instruments. The following table presents combined condensed balance sheet information for our financial services unconsolidated joint ventures, primarily comprised of KBHS (in thousands): November 30, 2022 2021 Assets Cash and cash equivalents $ 28,120 $ 23,916 Mortgage loans held for sale 250,572 234,669 Other assets 33,176 14,060 Total assets $ 311,868 $ 272,645 Liabilities and equity Accounts payable and other liabilities $ 15,590 $ 18,375 Funding facilities 242,944 221,633 Equity 53,334 32,637 Total liabilities and equity $ 311,868 $ 272,645 Mortgage loans held for sale . Originated mortgage loans expected to be sold into the secondary market in the foreseeable future are reported as mortgage loans held for sale and carried in KBHS’ balance sheets at fair value, with changes in fair value recognized within revenues in KBHS’ statements of operations. Interest rate lock commitments . KBHS enters into IRLCs in connection with originating certain mortgage loans held for sale, at specified interest rates and within a specified period of time, with customers who have applied for a mortgage loan and meet certain credit and underwriting criteria. KBHS accounts for IRLCs as free-standing derivatives and does not designate any for hedge accounting. As a result, IRLCs are recognized in KBHS’ balance sheets at fair value, and gains or losses resulting from changes in fair value are recognized within revenues in KBHS’ statements of operations. The fair value of IRLCs is based on market prices, which includes an estimate of the fair value of the associated mortgage servicing rights, adjusted for estimated costs to originate the underlying mortgage loans as well as the probability that the mortgage loans will fund within the terms of the IRLCs. The fair value of IRLCs included in other assets in KBHS’ balance sheets was $29.8 million at November 30, 2022 and $9.5 million at November 30, 2021. The changes in the fair value of IRLCs, which were reported in revenues for the applicable periods, were gains of $20.3 million, $2.8 million and $4.0 million for 2022, 2021 and 2020, respectively. KBHS manages the interest rate and price risk associated with its outstanding IRLCs by entering into best efforts forward sale commitments under which mortgage loans locked with a borrower are simultaneously committed to a secondary market investor at a fixed price, subject to the underlying mortgage loans being funded. These best efforts forward sale commitments do not meet the definition of derivative financial instruments and are therefore not recorded in KBHS’ balance sheets. If the mortgage loans underlying the IRLCs do not fund, KBHS has no obligation to fulfill the secondary market investor commitments. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Nov. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): November 30, 2022 2021 Computer software and equipment $ 47,628 $ 39,938 Model furnishings and sales office improvements 100,276 87,702 Leasehold improvements, office furniture and equipment 18,910 17,922 Subtotal 166,814 145,562 Accumulated depreciation (77,580) (69,249) Total $ 89,234 $ 76,313 |
Other Assets
Other Assets | 12 Months Ended |
Nov. 30, 2022 | |
Other Assets [Abstract] | |
Other Assets | Other Assets Other assets consisted of the following (in thousands): November 30, 2022 2021 Cash surrender value of corporate-owned life insurance contracts $ 55,591 $ 68,748 Lease right-of-use assets 25,469 27,508 Prepaid expenses 15,645 6,344 Debt issuance costs associated with unsecured revolving credit facility, net 4,346 1,553 Total $ 101,051 $ 104,153 |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Nov. 30, 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): November 30, 2022 2021 Self-insurance and other legal liabilities $ 234,128 $ 239,129 Employee compensation and related benefits 182,443 192,549 Warranty liability 101,890 96,153 Customer deposits 76,738 71,032 Accrued interest payable 29,989 24,554 Lease liabilities 27,494 29,279 Inventory-related obligations (a) 19,136 36,146 Real estate and business taxes 17,557 17,563 Federal and state taxes payable 3,671 8,290 Other 43,925 42,210 Total $ 736,971 $ 756,905 |
Leases
Leases | 12 Months Ended |
Nov. 30, 2022 | |
Leases [Abstract] | |
Leases | 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 in our consolidated balance sheets for leases with an expected term at the commencement date of more than 12 months. Some of our leases include one or more renewal options, the exercise of which is generally at our discretion. Such options are excluded from the expected term of the lease unless we determine it is reasonably certain the option will be exercised. Lease liabilities are equal to the present value of the remaining lease payments while the amount of lease right-of-use assets is based on the lease liabilities, subject to adjustment, such as for lease incentives. Our leases do not provide a readily determinable implicit interest rate; therefore, we estimate our incremental borrowing rate to calculate the present value of remaining lease payments. In determining our incremental borrowing rate, we considered the lease term, market interest rates, current interest rates on our senior notes and the effects of collateralization. Our lease population at November 30, 2022 was comprised of operating leases where we are the lessee, primarily real estate leases for our corporate offices, division offices and design studios, as well as certain equipment leases. Our lease agreements do not contain any residual value guarantees or material restrictive covenants. 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. For the years ended November 30, 2022, 2021 and 2020, our total lease expense was $20.7 million, $17.3 million and $17.7 million, respectively, and included short-term lease costs of $7.7 million, $4.7 million and $6.0 million, respectively. Variable lease costs and external sublease income for the years ended November 30, 2022, 2021 and 2020 were immaterial. The following table presents our lease right-of-use assets, lease liabilities and the weighted-average remaining lease term and weighted-average discount rate (incremental borrowing rate) used in calculating the lease liabilities (dollars in thousands): November 30, 2022 2021 Lease right-of-use assets (a) $ 25,545 $ 27,693 Lease liabilities (b) 27,580 29,481 Weighted-average remaining lease term 3.5 years 3.8 years Weighted-average discount rate (incremental borrowing rate) 5.0 % 5.1 % (a) Represents lease right-of-use assets within our homebuilding operations and financial services operations of $25.5 million and $.1 million, respectively, at November 30, 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 $27.5 million and $.1 million, respectively, at November 30, 2022, and $29.3 million and $.2 million, respectively, at November 30, 2021. The following table presents additional information about our leases (in thousands): Years Ended November 30, 2022 2021 Lease right-of-use assets obtained in exchange for new lease liabilities $ 3,941 $ 1,526 Cash payments on lease liabilities 11,169 11,613 As of November 30, 2022, the future minimum lease payments required under our leases are as follows (in thousands): Years Ending November 30, 2023 $ 10,589 2024 8,235 2025 6,159 2026 2,296 2027 1,761 Thereafter 1,122 Total lease payments 30,162 Less: Interest (2,582) Present value of lease liabilities $ 27,580 |
Income Taxes
Income Taxes | 12 Months Ended |
Nov. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income Tax Expense. The components of the income tax expense in our consolidated statements of operations are as follows (in thousands): Federal State Total 2022 Current $ (194,400) $ (49,500) $ (243,900) Deferred (2,900) (8,600) (11,500) Income tax expense $ (197,300) $ (58,100) $ (255,400) 2021 Current $ (44,300) $ (33,700) $ (78,000) Deferred (47,200) (5,400) (52,600) Income tax expense $ (91,500) $ (39,100) $ (130,600) 2020 Current $ (12,100) $ (3,500) $ (15,600) Deferred (36,200) (16,000) (52,200) Income tax expense $ (48,300) $ (19,500) $ (67,800) Our effective tax rates were 23.8% for 2022, 18.8% for 2021 and 18.6% for 2020. In 2022, our income tax expense and effective tax rate reflected the favorable impacts of $22.6 million of federal tax credits we recognized primarily from building energy-efficient homes and $1.8 million of excess tax benefits related to stock-based compensation, partly offset by $9.7 million of non-deductible executive compensation expense under Internal Revenue Code Section 162(m). In 2021, our income tax expense and effective tax rate reflected the favorable impacts of $49.5 million of federal tax credits we recognized primarily from building energy-efficient homes and $7.1 million of excess tax benefits related to stock-based compensation, partly offset by $11.3 million of non-deductible executive compensation expense. In 2020, our income tax expense and effective tax rate reflected the favorable impacts of $18.7 million of federal tax credits we recognized primarily from building energy-efficient homes and $12.0 million of excess tax benefits related to stock-based compensation, partly offset by $5.7 million of non-deductible executive compensation expense. On August 16, 2022, the IRA was enacted into law. The IRA contains significant tax law changes, including a CAMT of 15% on adjusted financial statement income for applicable corporations, and a 1% excise tax on stock repurchases after December 31, 2022. If applicable, the CAMT will not be effective for us until our fiscal year ending November 30, 2024. The IRA also extends the federal tax credit for building new energy-efficient homes for homes delivered from January 1, 2022 (retroactively) through December 31, 2032, as well as modifies and increases it starting in 2023. Previously, the federal tax credit expired for homes delivered after December 31, 2021. The federal tax credits we recognized in 2022 reflected the impact of the extension under the IRA. We are currently evaluating the other potential effects of the IRA on our consolidated financial statements. The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), enacted on March 27, 2020, provided economic and other relief as a result of the COVID-19 pandemic. Among other things, the CARES Act accelerated the timetable for alternative minimum tax (“AMT”) credit refunds. As a result, in the 2020 second quarter, we filed a superseding 2019 federal income tax return claiming an additional refund of $39.3 million of AMT credits and reclassified this amount from deferred tax assets to receivables. We received this AMT credit refund in the 2021 first quarter. In the 2020 fourth quarter, an amended 2019 federal income tax return was filed to expedite our additional refund and to recognize federal tax credits we earned from building energy-efficient homes in 2019. These credits were in addition to the $43.3 million of AMT tax credits that we reclassified from deferred tax assets to receivables in the 2020 first quarter when we filed a preliminary 2019 federal income tax return. We received the $43.3 million AMT credit refund in the 2020 third quarter. Our accounting policy regarding the balance sheet presentation of AMT credits is to maintain the balance in deferred tax assets until a tax return is filed claiming a refund of a portion of the credit, at which time such amount will be presented in receivables. The CARES Act also provided an 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 ERC refund in the 2021 fourth quarter. In June 2020, California enacted tax legislation that approved the suspension of California 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 years ended November 30, 2022, 2021 or 2020, it contributed to the year-over-year increase in the amount of taxes we paid in 2022 and 2021. Deferred Tax Assets, Net. Deferred income taxes result from temporary differences in the financial and tax basis of assets and liabilities. Significant components of our deferred tax liabilities and assets are as follows (in thousands): November 30, 2022 2021 Deferred tax liabilities: Capitalized expenses $ 32,646 $ 36,660 State taxes 18,698 20,558 Depreciation and amortization 8,628 3,926 Other 416 1,555 Total 60,388 62,699 November 30, 2022 2021 Deferred tax assets: Warranty, legal and other accruals $ 63,424 $ 54,826 NOLs from 2006 through 2022 60,680 73,662 Employee benefits 55,382 56,384 Inventory impairment and land option contract abandonment charges 24,871 30,767 Capitalized expenses 24,665 26,849 Partnerships and joint ventures 7,386 8,265 Tax credits — 4,634 Other 1,948 2,090 Total 238,356 257,477 Valuation allowance (17,100) (17,400) Total 221,256 240,077 Deferred tax assets, net $ 160,868 $ 177,378 Reconciliation of Expected Income Tax Expense. The income tax expense computed at the statutory U.S. federal income tax rate and the income tax expense provided in our consolidated statements of operations differ as follows (dollars in thousands): Years Ended November 30, 2022 2021 2020 $ % $ % $ % Income tax expense computed at statutory rate $ (225,121) (21.0) % $ (146,023) (21.0) % $ (76,449) (21.0) % Tax credits 22,565 2.1 49,522 7.1 18,734 5.1 Depreciation and amortization 1,444 .2 5,872 .8 9,910 2.7 Valuation allowance for deferred tax assets 300 — 600 .1 1,200 .3 Non-deductible compensation (7,905) (0.7) (9,241) (1.3) (4,812) (1.3) State taxes, net of federal income tax benefit (46,139) (4.3) (31,378) (4.5) (16,395) (4.4) Other, net (544) (.1) 48 — 12 — Income tax expense $ (255,400) (23.8) % $ (130,600) (18.8) % $ (67,800) (18.6) % 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. In our evaluation, we give more significant weight to evidence that is objective in nature as compared to subjective evidence. Also, more significant weight is given to evidence that directly relates to our then-current financial performance as compared to indirect or less current evidence. 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 $178.0 million at November 30, 2022 and $194.8 million at November 30, 2021 were partially offset in each year by valuation allowances of $17.1 million and $17.4 million, respectively. The deferred tax asset valuation allowances at November 30, 2022 and 2021 were primarily related to certain state NOLs that had not met the “more likely than not” realization standard at those dates. As a result of our utilization of certain state NOLs, we reduced the valuation allowance by $.3 million in 2022. As of November 30, 2022, we would need to generate approximately $670 million of pretax income in future periods before 2042 to realize our deferred tax assets. Based on the evaluation of our deferred tax assets as of November 30, 2022 and 2021, we determined that most of our deferred tax assets would be realized. 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. The majority of the tax benefits associated with our NOLs can be carried forward for 20 years and applied to offset future taxable income. Depending on their applicable statutory period, the state NOL carryforwards of $60.7 million, if not utilized, will begin to expire between 2023 and 2042. State NOL carryforwards of $.1 million, $.2 million and $.4 million expired in 2022, 2021 and 2020, respectively. Unrecognized Tax Benefits. Gross unrecognized tax benefits are the differences between a tax position taken or expected to be taken in a tax return, and the benefit recognized for accounting purposes. A reconciliation of the beginning and ending balances of gross unrecognized tax benefits, including interest and penalties, is as follows (in thousands): Years Ended November 30, 2022 2021 2020 Balance at beginning of year $ 930 $ — $ — Increase as a result of tax position taken in prior years 45 930 — Balance at end of year $ 975 $ 930 $ — We had unrecognized tax benefits of $1.0 million as of November 30, 2022 and $.9 million as of November 30, 2021. Our unrecognized tax benefits are included in accrued expenses and other liabilities in our consolidated balance sheets. We recognize accrued interest and penalties related to unrecognized tax benefits in our consolidated financial statements as a component of the provision for income taxes. As of November 30, 2020, we had no gross unrecognized tax benefits. If these unrecognized tax benefits reverse in the future, they would have a beneficial impact on our effective tax rate at that time. During the next 12 months, it is possible that the amount of unrecognized tax benefits will change, but we are not able to provide a range of such change. The potential change will be related to increases due to new tax positions taken and the accrual of interest and penalties. Our total accrued interest and penalties related to unrecognized income tax benefits was less than $.1 million at November 30, 2022 and zero at 2021. Because of the impact of deferred tax accounting, other than interest and penalties, the disallowance of the shorter deductibility period would not affect our annual effective tax rate but would accelerate the payment of cash to a tax authority to an earlier period. The fiscal years ending 2019 and later remain open to federal examinations, while 2018 and later remain open to state examinations. |
Notes Payable
Notes Payable | 12 Months Ended |
Nov. 30, 2022 | |
Debt Disclosure [Abstract] | |
Notes Payable | Notes Payable Notes payable consisted of the following (in thousands): November 30, 2022 2021 Unsecured revolving credit facility $ 150,000 $ — Senior unsecured term loan 357,485 — Mortgages and land contracts due to land sellers and other loans (at an interest rate of 4.5% at November 30, 2022 and 2021) 4,760 5,327 7.50% Senior notes due September 15, 2022 — 349,471 7.625% Senior notes due May 15, 2023 — 350,788 6.875% Senior notes due June 15, 2027 297,595 297,161 4.80% Senior notes due November 15, 2029 297,230 296,905 7.25% Senior notes due July 15, 2030 345,663 — 4.00% Senior notes due June 15, 2031 385,778 385,375 Total $ 1,838,511 $ 1,685,027 The carrying amounts of the Term Loan and senior notes listed above are net of debt issuance costs and premiums, if applicable, which totaled $16.2 million at November 30, 2022 and $10.3 million at November 30, 2021. Unsecured Revolving Credit Facility. On February 18, 2022, we entered into an amendment to our 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 an adjusted term SOFR rate or a base rate, plus a spread that depends on our 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 an Interest Coverage Ratio or a minimum level of liquidity, each as defined therein. Our obligations to pay borrowings under the Credit Facility are guaranteed on a joint and several basis by our Guarantor Subsidiaries. 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 November 30, 2022, we had $150.0 million cash borrowings and $6.7 million of letters of credit outstanding under the Credit Facility. Therefore, as of November 30, 2022, we had $933.3 million available for cash borrowings under the Credit Facility, with up to $243.3 million of that amount available for the issuance of letters of credit. As of November 30, 2022, the weighted average annual interest rate on our outstanding borrowings under the Credit Facility was 5.1%. Senior Unsecured Term Loan. On August 25, 2022, we entered into the Term Loan with the lenders party thereto, and on October 3, 2022 obtained an additional lender commitment thereunder, pursuant to which the lenders committed up to $360.0 million. The Term Loan will mature on August 25, 2026, or earlier if we secure borrowings under the Credit Facility without similarly securing the Term Loan (subject to certain exceptions). Interest under the Term Loan generally will be based on either an adjusted term SOFR or a base rate, plus a spread that depends on our Leverage Ratio. The Term Loan contains various covenants that are substantially the same as those under the Credit Facility. Proceeds drawn under the Term Loan are guaranteed on a joint and several basis by our Guarantor Subsidiaries. As of November 30, 2022, the weighted average annual interest rate on our outstanding borrowings under the Term Loan was 5.6%. On November 14, 2022, we borrowed $360.0 million under the Term Loan and, on November 15, 2022, we used the proceeds toward the redemption of our $350.0 million in aggregate principal amount of 7.625% Senior Notes due 2023 at par. LOC Facility. We maintain an 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 November 30, 2022 and 2021, we had letters of credit outstanding under the LOC Facility of $36.4 million and $34.6 million, respectively. Mortgages and Land Contracts Due to Land Sellers and Other Loans. As of November 30, 2022, inventories having a carrying value of $31.3 million were pledged to collateralize mortgages and land contracts due to land sellers and other loans. Shelf Registration. Our 2020 Shelf Registration is filed with the SEC. The 2020 Shelf Registration registers the offering of securities that we may issue from time to time in amounts to be determined. Our ability to issue securities is subject to market conditions. Senior Notes. All the senior notes outstanding at November 30, 2022 and 2021 represent senior unsecured obligations that are guaranteed by certain of our subsidiaries and rank equally in right of payment with all of our existing and future 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 key terms of each of our senior notes outstanding as of November 30, 2022 were as follows (dollars in thousands): Redeemable Prior to Maturity Effective Interest Rate Notes Payable Principal Issuance Date Maturity Date 6.875% Senior notes $ 300,000 February 20, 2019 June 15, 2027 Yes (a) 7.1 % 4.80% Senior notes 300,000 November 4, 2019 November 15, 2029 Yes (a) 5.0 7.25% Senior notes 350,000 June 22, 2022 July 15, 2030 Yes (b) 7.5 4.00% Senior notes 390,000 June 9, 2021 June 15, 2031 Yes (a) 4.2 (a) At our option, these notes may be redeemed, in whole at any time or from time to time in part, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes being redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the notes being redeemed (exclusive of interest accrued to the applicable redemption date), discounted to the redemption date at a defined rate, plus, in each case, accrued and unpaid interest on the notes being redeemed to, but excluding, the applicable redemption date, except that six months prior to the stated maturity date for these notes, the redemption price will be equal to 100% of the principal amount of the notes being redeemed, plus accrued and unpaid interest on the notes being redeemed to, but excluding, the applicable redemption date. (b) At our option, these notes may be redeemed, in whole at any time or in part from time to time prior to July 15, 2025, at a redemption price equal to 100% of the principal amount of the notes being redeemed plus a “make whole” premium, plus accrued and unpaid interest, if any, to the redemption date. In addition, at any time or from time to time prior to July 15, 2025, an amount not to exceed the net proceeds of qualified equity offerings may be used at our option to redeem up to 40% of the aggregate principal amount of these notes, at a redemption price equal to 107.250% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding the redemption date. We may also elect to redeem the notes in whole at any time or in part from time to time, on or after July 15, 2025, at the applicable specified redemption price, including accrued and unpaid interest, if any, to the redemption date. If a change in control occurs as defined in the instruments governing our senior notes, we would be required to offer to purchase all of our outstanding senior notes at 101% of their principal amount, together with all accrued and unpaid interest, if any. On June 22, 2022, we completed the underwritten public offering of $350.0 million in aggregate principal amount of 7.25% Senior Notes due 2030 at 100% of their aggregate principal amount. Net proceeds from this offering totaled $345.5 million, after deducting the underwriting discount and our expenses relating to the offering. Interest on the 7.25% Senior Notes due 2030 is payable semi-annually in arrears on January 15 and July 15, commencing on January 15, 2023. These notes will mature on July 15, 2030. On July 7, 2022, we used the net proceeds from the issuance of the 7.25% Senior Notes due 2030, together with cash on hand, to retire our then-outstanding $350.0 million in aggregate principal amount of 7.50% Senior Notes due 2022 before their September 15, 2022 maturity date, by redemption pursuant to the optional redemption terms specified for such notes. We paid $353.6 million to redeem the notes and recorded a charge of $3.6 million for the early extinguishment of debt in the 2022 third quarter, primarily due to a make-whole premium paid to redeem these senior notes. On June 9, 2021, we completed the underwritten public offering of $390.0 million in aggregate principal amount of 4.00% Senior Notes due 2031 at 100% of their aggregate principal amount. Net proceeds from this offering totaled $385.2 million, after deducting the underwriting discount and our expenses relating to the offering. Interest on the 4.00% Senior Notes due 2031 is payable semi-annually in arrears on June 15 and December 15, commencing on December 15, 2021. These notes will mature on June 15, 2031. On June 9, 2021, we used a portion of the net proceeds from the issuance of the 4.00% Senior Notes due 2031 to purchase, pursuant to a tender offer that expired the previous day, $269.8 million in aggregate principal amount of our then-outstanding $450.0 million of 7.00% Senior Notes due 2021. We paid $274.9 million to purchase the notes and recorded a charge of $5.1 million for the early extinguishment of debt in the 2021 third quarter due to a premium paid under the tender offer and the unamortized original issue discount associated with the notes. On September 15, 2021, we redeemed the then-remaining $180.2 million in aggregate principal amount of the 7.00% Senior Notes due 2021 at par value pursuant to their terms. 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-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 the date of this report, we were in compliance with the applicable terms of all our covenants and other requirements under the Credit Facility, the Term Loan, 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. There are no agreements that restrict our payment of dividends other than the Credit Facility and the Term Loan, which would restrict our payment of certain dividends, such as cash dividends on our common stock, if a default under the Credit Facility or the Term Loan exists at the time of any such payment, or if any such payment would result in such a default (other than dividends paid within 60 days after declaration, if there was no default at the time of declaration). |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Nov. 30, 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 (in thousands): November 30, 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 $ 65,372 $ (24,077) $ 41,295 $ 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 primarily 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 values and estimated fair values of our financial instruments, except those for which the carrying values approximate fair values (in thousands): November 30, 2022 2021 Description Fair Value Hierarchy Carrying Estimated Carrying Estimated Financial Liabilities: Senior notes Level 2 $ 1,326,266 $ 1,205,875 $ 1,679,700 $ 1,796,500 (a) The carrying value for the senior notes, as presented, includes unamortized debt issuance costs. Debt issuance costs are not factored into the estimated fair values of these notes. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Nov. 30, 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): Years Ended November 30, 2022 2021 2020 Balance at beginning of year $ 96,153 $ 91,646 $ 88,839 Warranties issued 39,476 34,627 29,505 Payments (33,739) (26,120) (23,098) Adjustments — (4,000) (3,600) Balance at end of year $ 101,890 $ 96,153 $ 91,646 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 generally 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 certain 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 product 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 years 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 $32.7 million and $57.8 million are included in receivables in our consolidated balance sheets at November 30, 2022 and 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 year to year. 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): Years Ended November 30, 2022 2021 2020 Balance at beginning of year $ 189,131 $ 194,180 $ 177,765 Self-insurance provided 21,926 19,665 15,399 Payments (21,984) (29,369) (4,375) Adjustments (a) (13,096) 4,655 5,391 Balance at end of year $ 175,977 $ 189,131 $ 194,180 (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; an adjustment to increase our previously recorded liability by $7.0 million in 2022 and $6.8 million in 2021; and an adjustment to reduce our previously recorded liability by $4.0 million in 2020. The 2022 amount primarily reflected a change in the actuarially determined estimate of probable recoveries largely associated with higher self-insured retention levels in our more recent coverage years, and an insurance carrier’s payment of a portion of a townhome claim settlement reached in the 2022 first quarter. 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 November 30, 2022, we had approximately 531 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 November 30, 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. 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 November 30, 2022, we had $1.27 billion of performance bonds and $43.0 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 business, we enter into land option contracts and other similar contracts to acquire rights to land for the construction of homes. At November 30, 2022, we had total cash deposits of $51.9 million to purchase land having an aggregate purchase price of $1.16 billion. Our land option contracts and other similar contracts generally do not contain provisions requiring our specific performance. |
Legal Matters
Legal Matters | 12 Months Ended |
Nov. 30, 2022 | |
Loss Contingency, Information about Litigation Matters [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 November 30, 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 | 12 Months Ended |
Nov. 30, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Preferred Stock. To help protect the benefits of our NOLs and other deferred tax assets from an ownership change under Section 382, on January 22, 2009, we adopted a rights agreement and declared a dividend distribution of one preferred share purchase right for each outstanding share of common stock. Subject to the terms, provisions and conditions of the rights agreement, if the rights become exercisable, each right would initially represent the right to purchase from us 1/100th of a share of our Series A Participating Cumulative Preferred Stock for a purchase price of $85.00 (“Purchase Price”). If issued, each fractional share of preferred stock would generally give a stockholder approximately the same dividend, voting and liquidation rights as does one share of our common stock. However, prior to exercise, a right does not give its holder any rights as a stockholder, including without limitation any dividend, voting or liquidation rights. The rights will not be exercisable until the earlier of (a) 10 calendar days after a public announcement by us that a person or group has become an Acquiring Person (as defined under the rights agreement) and (b) 10 business days after the commencement of a tender or exchange offer by a person or group if upon consummation of the offer the person or group would beneficially own 4.9% or more of our outstanding common stock. Until these rights become exercisable (“Distribution Date”), common stock certificates and/or book-entry shares will evidence the rights and may contain a notation to that effect. Any transfer of shares of our common stock prior to the Distribution Date will constitute a transfer of the associated rights. After the Distribution Date, the rights may be transferred other than in connection with the transfer of the underlying shares of our common stock. If there is an Acquiring Person on the Distribution Date or a person or group becomes an Acquiring Person after the Distribution Date, each holder of a right, other than rights that are or were beneficially owned by an Acquiring Person, which will be void, will thereafter have the right to receive upon exercise of a right and payment of the Purchase Price, that number of shares of our common stock having a market value of two times the Purchase Price. After the later of the Distribution Date and the time we publicly announce that an Acquiring Person has become such, our board of directors may exchange the rights, other than rights that are or were beneficially owned by an Acquiring Person, which will be void, in whole or in part, at an exchange ratio of one share of common stock per right, subject to adjustment. At any time prior to the later of the Distribution Date and the time we publicly announce that an Acquiring Person becomes such, our board of directors may redeem all the then-outstanding rights in whole, but not in part, at a price of $.001 per right, subject to adjustment (“Redemption Price”). The redemption will be effective immediately upon the board of directors’ action, unless the action provides that such redemption will be effective at a subsequent time or upon the occurrence or nonoccurrence of one or more specified events, in which case the redemption will be effective in accordance with the provisions of the action. Immediately upon the effectiveness of the redemption of the rights, the right to exercise the rights will terminate and the only right of the holders of rights will be to receive the Redemption Price, with interest thereon. Per the rights agreement, as amended, the rights issued thereunder will expire on the earliest of (a) the close of business on April 30, 2024, (b) the time at which the rights are redeemed, (c) the time at which the rights are exchanged, (d) the time at which our board of directors determines that a related provision in our Restated Certificate of Incorporation is no longer necessary, and (e) the close of business on the first day of a taxable year of ours to which our board of directors determines that no tax benefits may be carried forward. Common Stock. On July 8, 2021, our board of directors authorized us to repurchase up to 5,000,000 shares of our outstanding common stock. This authorization reaffirmed and incorporated the then-current balance of 2,193,947 shares that remained under a prior board-approved share repurchase program. In 2021, we repurchased 4,668,600 shares of our common stock on the open market pursuant to this authorization at a total cost of $188.2 million. 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 the prior board of directors authorization, which had 331,400 shares remaining for repurchase. In 2022, we repurchased 4,927,499 shares of our common stock on the open market pursuant to this authorization at a total cost of $150.0 million. 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 November 30, 2022, we were authorized to repurchase up to $150.0 million of our outstanding common stock. On April 7, 2022, our board of directors also terminated a separate stock repurchase authorization it made in 2014 for the repurchase of not more than 680,000 shares of our outstanding common stock, solely as necessary for director elections in respect of Director Plan SARs. As the remaining outstanding Director Plan SARs expired in April 2022, this stock repurchase authorization was no longer needed. Our board of directors declared four quarterly cash dividends of $.15 per share of common stock in 2022 and 2021. In 2020, our board of directors declared quarterly cash dividends of $.09 per share of common stock in the first, second and third quarters. In the 2020 fourth quarter, our board of directors approved an increase in the quarterly cash dividend on our common stock to $.15 per share and declared a quarterly cash dividend at the new higher rate. All dividends declared during 2022, 2021 and 2020 were also paid during those years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Nov. 30, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table presents the changes in the balances of each component of accumulated other comprehensive loss (in thousands): Postretirement Benefit Plan Adjustments Total Accumulated Other Comprehensive Loss Balance at November 30, 2020 $ (22,276) Other comprehensive income before reclassifications 2,664 Amounts reclassified from accumulated other comprehensive loss 1,661 Income tax expense related to items of other comprehensive income (1,168) Other comprehensive income, net of tax 3,157 Balance at November 30, 2021 (19,119) Other comprehensive income before reclassifications 17,463 Amounts reclassified from accumulated other comprehensive loss 1,090 Income tax expense related to items of other comprehensive income (5,009) Other comprehensive income, net of tax 13,544 Balance at November 30, 2022 $ (5,575) The amounts reclassified from accumulated other comprehensive loss consisted of the following (in thousands): Years Ended November 30, Details About Accumulated Other Comprehensive Loss Components 2022 2021 2020 Postretirement benefit plan adjustments Amortization of net actuarial loss $ 1,090 $ 1,575 $ 963 Amortization of prior service cost — 86 425 Total reclassifications (a) $ 1,090 $ 1,661 $ 1,388 (a) The accumulated other comprehensive loss components are included in the computation of net periodic benefit costs as further discussed in Note 22 – Postretirement Benefits. |
Employee Benefit and Stock Plan
Employee Benefit and Stock Plans | 12 Months Ended |
Nov. 30, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Employee Benefit and Stock Plans | Employee Benefit and Stock Plans Most of our employees are eligible to participate in the KB Home 401(k) Savings Plan (“401(k) Plan”) under which we partially match employee contributions. The aggregate cost of the 401(k) Plan to us was $8.2 million in 2022, $7.2 million in 2021 and $6.5 million in 2020. The assets of the 401(k) Plan are held by a third-party trustee. The 401(k) Plan participants may direct the investment of their funds among one or more of the several fund options offered by the 401(k) Plan. As of November 30, 2022, 2021 and 2020, approximately 3%, 4% and 4%, respectively, of the 401(k) Plan’s net assets at each period were invested in our common stock. Equity Incentive Plan. We maintain one active equity incentive plan with an authorized aggregate issuance of 12,300,000 shares, plus shares available for grant under a prior equity incentive plan, and shares subject to outstanding awards under the prior equity incentive plan that subsequently expire or are canceled, forfeited, tendered or withheld to satisfy tax withholding obligations with respect to full value awards, or settled for cash. In addition, if an award made under our active equity incentive plan subsequently expires or is canceled, forfeited or settled for cash, then any shares associated with such award may, to the extent of such expiration, cancellation, forfeiture or cash settlement, be used again for new grants under the plan, and shares tendered or withheld to satisfy tax withholding obligations with respect to a full value award may be used again for new grants under the plan. Under our active equity incentive plan, grants of stock options and other similar awards reduce the plan’s share capacity on a 1-for-1 basis, and grants of restricted stock and other similar “full value” awards reduce the share capacity on a 1.78-for-1 basis. Any shares that again become available for grant will be added back to the equity incentive plan’s available grant capacity in the same manner in which they were initially deducted ( i.e ., 1-for-1 or 1.78-for-1). The plan provides that stock options and stock appreciation rights may be awarded for periods of up to 10 years. It also enables us to grant cash bonuses and other stock-based awards. Stock-Based Compensation. With the approval of the management development and compensation committee, consisting entirely of independent members of our board of directors, we have provided compensation benefits to certain of our employees in the form of stock options, restricted stock and PSUs. Certain stock-based compensation benefits are also provided to our non-employee directors pursuant to the Director Plan. Compensation expense related to equity-based awards is included in selling, general and administrative expenses in our consolidated statements of operations. The following table presents our stock-based compensation expense (in thousands): Years Ended November 30, 2022 2021 2020 Restricted stock $ 8,743 $ 7,139 $ 6,993 PSUs 18,757 19,512 13,069 Director awards 1,964 2,253 1,469 Total $ 29,464 $ 28,904 $ 21,531 Stock Options. Stock option transactions are summarized as follows: Years Ended November 30, 2022 2021 2020 Options Weighted Options Weighted Options Weighted Options outstanding at beginning of year 1,674,393 $ 15.56 2,462,714 $ 15.32 4,163,481 $ 13.00 Granted — — — — — — Exercised — — (788,321) 14.83 (1,694,767) 9.52 Cancelled — — — — (6,000) 45.16 Options outstanding at end of year 1,674,393 $ 15.56 1,674,393 $ 15.56 2,462,714 $ 15.32 Options exercisable at end of year 1,674,393 $ 15.56 1,674,393 $ 15.56 2,462,714 $ 15.32 Options available for grant at end of year 3,260,585 4,096,427 4,888,526 There were no stock options granted in 2022, 2021 or 2020. We have not granted any stock option awards since 2016. There were no stock options exercised in 2022. The total intrinsic value of stock options exercised was $22.1 million in 2021 and $48.2 million in 2020. The aggregate intrinsic value of stock options outstanding was $26.5 million, $40.9 million and $48.9 million at November 30, 2022, 2021 and 2020, respectively. The aggregate intrinsic value of stock options exercisable was $26.5 million at November 30, 2022, $40.9 million at November 30, 2021, and $48.9 million at November 30, 2020. The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the price of the option. Stock options outstanding and stock options exercisable at November 30, 2022 are summarized as follows: Options Outstanding Options Exercisable Range of Exercise Price Options Weighted Weighted Options Weighted Weighted $6.32 to $14.62 201,517 $ 14.62 1.9 201,517 $ 14.62 $14.63 to $14.92 663,000 14.92 2.9 663,000 14.92 $14.93 to $16.21 611,876 16.21 3.8 611,876 16.21 $16.22 to $16.63 198,000 16.63 0.9 198,000 16.63 $6.32 to $16.63 1,674,393 $ 15.56 2.9 1,674,393 $ 15.56 2.9 At November 30, 2022, there was no unrecognized stock-based compensation expense related to stock option awards as all these awards were fully vested. Restricted Stock. From time to time, we grant restricted stock to various employees as a compensation benefit. During the restriction periods, these employees are entitled to vote and to receive cash dividends on such shares. The restrictions imposed with respect to the shares granted lapse in installments within, or in full at the end of, three years after their grant date if certain conditions are met. Restricted stock transactions are summarized as follows: Years Ended November 30, 2022 2021 2020 Shares Weighted Shares Weighted Shares Weighted Outstanding at beginning of year 431,191 $ 19.22 423,215 $ 19.56 500,066 $ 20.66 Granted 347,131 27.49 286,709 40.55 265,187 35.57 Vested (192,840) 29.09 (265,131) 42.04 (304,095) 34.25 Cancelled (41,596) 38.58 (13,602) 34.43 (37,943) 28.18 Outstanding at end of year 543,886 $ 19.50 431,191 $ 19.22 423,215 $ 19.56 As of November 30, 2022, we had $15.8 million of total unrecognized compensation cost related to restricted stock awards that will be recognized over a weighted average period of approximately three years. Performance-Based Restricted Stock Units. On November 14, 2022, we granted PSUs to certain employees. Each PSU grant corresponds to a target amount of our common stock (“Award Shares”). Each PSU entitles the recipient to receive a grant of between 0% and 200% of the recipient’s Award Shares, and will vest based on our achieving, over a three-year period commencing on December 1, 2022 and ending on November 30, 2025, specified levels of (a) cumulative adjusted earnings per share; (b) average adjusted return on invested capital; and (c) revenue growth performance relative to a peer group of high-production public homebuilding companies. The grant date fair value of each such PSU was $30.12. On October 7, 2021, we granted PSUs to certain employees with similar terms as the 2022 PSU grants, except that the applicable performance period commenced on December 1, 2021 and ends on November 30, 2024. The grant date fair value of each such PSU was $39.31. On October 8, 2020, we granted PSUs to certain employees with similar terms as the 2022 PSU grants, except that the applicable performance period commenced on December 1, 2020 and ends on November 30, 2023. The grant date fair value of each such PSU was $40.06. PSU transactions are summarized as follows: Years Ended November 30, 2022 2021 2020 Shares Weighted Shares Weighted Shares Weighted Outstanding at beginning of year 1,392,864 $ 23.48 1,346,870 $ 23.25 1,262,664 $ 22.13 Granted 650,077 33.34 465,064 39.67 397,452 40.05 Vested (674,677) 38.00 (419,070) 40.70 (313,246) 40.04 Cancelled (95,107) 38.55 — — — — Outstanding at end of year 1,273,157 $ 19.70 1,392,864 $ 23.48 1,346,870 $ 23.25 The number of shares of our common stock actually granted to a recipient, if any, when a PSU vests will depend on the degree of achievement of the applicable performance measures during the applicable three-year period. The shares of our common stock that were granted under the terms of PSUs that vested in 2022 included an aggregate of 265,782 additional shares above the target amount awarded to the eligible recipients based on our achievement of certain levels of the three above-described metrics over the three-year period from December 1, 2018 through November 30, 2021. The shares of our common stock that were granted under the terms of PSUs that vested in 2021 included an aggregate of 119,733 additional shares above the target amount awarded to the eligible recipients based on our achievement of certain levels of the three above-described metrics over the three-year period from December 1, 2017 through November 30, 2020. The shares of our common stock that were granted under the terms of PSUs that vested in 2020 included an aggregate of 108,511 additional shares above the target amount awarded to the eligible recipients based on our achievement of certain levels of the three above-described metrics over the three-year period from December 1, 2016 through November 30, 2019. The PSUs do not have dividend or voting rights during the performance period. Compensation cost for PSUs is initially estimated based on target performance achievement and adjusted as appropriate throughout the performance period. Accordingly, future compensation costs associated with outstanding PSUs may increase or decrease based on the probability and extent of achievement with respect to the applicable performance measures. At November 30, 2022, we had $37.7 million of total unrecognized compensation cost related to unvested PSUs, which is expected to be recognized over a weighted-average period of approximately three years. Director Awards. We have granted Director Plan SARs and deferred common stock awards to our non-employee directors pursuant to the terms of the Director Plan and elections made by each director. All these awards were fully vested as of November 30, 2016. Director Plan SARs, which have not been granted since April 2014 as they ceased being a component of non-employee director compensation after that date, were stock settled, had terms of up to 15 years and were granted at an exercise price equal to the closing price of our common stock on the date of grant. There were no remaining Director Plan SARs outstanding at November 30, 2022. At November 30, 2021 and 2020, the aggregate outstanding Director Plan SARs were 70,849 and 155,569, respectively. At November 30, 2022, 2021 and 2020, the aggregate outstanding deferred common stock awards granted under the Director Plan were 409,648, 469,171 and 548,952, respectively. In addition, we have granted common stock on an unrestricted basis to our non-employee directors on the grant date pursuant to the Director Plan and elections made by each director. Grantor Stock Ownership Trust. We have a grantor stock ownership trust (“Trust”), administered by a third-party trustee, that holds and distributes the shares of common stock acquired to support certain employee compensation and employee benefit obligations under our existing stock option plan, the 401(k) Plan and other employee benefit plans. The existence of the Trust does not impact the amount of benefits or compensation that is paid under these plans. For financial reporting purposes, the Trust is consolidated with us, and therefore any dividend transactions between us and the Trust are eliminated. Acquired shares held by the Trust remain valued at the market price on the date of purchase and are shown as a reduction to stockholders’ equity in the consolidated balance sheets. The difference between the Trust share value and the market value on the date shares are released from the Trust is included in paid-in capital. Common stock held in the Trust is not considered outstanding in the computations of earnings per share. The Trust held 6,705,247 shares of common stock at both November 30, 2022 and 2021. The trustee votes shares held by the Trust in accordance with voting directions from eligible employees, as specified in a trust agreement with the trustee. |
Postretirement Benefits
Postretirement Benefits | 12 Months Ended |
Nov. 30, 2022 | |
Retirement Benefits [Abstract] | |
Postretirement Benefits | Postretirement Benefits We have a supplemental non-qualified, unfunded retirement plan, the KB Home Retirement Plan (“Retirement Plan”), effective as of July 11, 2002, pursuant to which we have offered to pay supplemental pension benefits to certain designated individuals (consisting of current and former employees) in connection with their retirement. The Retirement Plan was closed to new participants in 2004. We also have an unfunded death benefit plan, the KB Home Death Benefit Only Plan (“DBO Plan”), implemented on November 1, 2001, for certain designated individuals (consisting of current and former employees). The DBO Plan was closed to new participants in 2006. In connection with these plans and two other minor benefit programs, we have purchased cost recovery life insurance contracts on the lives of the designated individuals. The insurance contracts associated with the Retirement Plan and DBO Plan are held by a trust. The trust is the owner and beneficiary of such insurance contracts. The amount of the insurance coverage under the contracts is designed to provide sufficient funds to cover all costs of the plans if assumptions made as to employment term, mortality experience, policy earnings and other factors, as applicable, are realized. The cash surrender value of the Retirement Plan life insurance contracts was $35.3 million at November 30, 2022 and $40.5 million at November 30, 2021. We recognized investment losses on the cash surrender value of the Retirement Plan life insurance contracts of $3.1 million and $1.1 million in 2022 and 2021, and an investment gain of $.7 million in 2020. In 2022, 2021 and 2020, we paid $2.0 million, $1.9 million and $1.9 million, respectively, in benefits under the Retirement Plan to eligible former employees. The cash surrender value of the DBO Plan life insurance contracts was $16.8 million at November 30, 2022 and $18.5 million at November 30, 2021. We recognized investment losses on the cash surrender value of the DBO Plan life insurance contracts of $1.5 million in 2022 and $.3 million in 2021, and an investment gain of $.3 million in 2020. In 2022, we paid $.7 million in benefits under the DBO Plan. We did not pay out any benefits under the DBO Plan in 2021 or 2020. The net periodic benefit cost of our Retirement Plan and DBO Plan is included in selling, general and administrative expenses in our consolidated statements of operations and consisted of the following (in thousands): Years Ended November 30, 2022 2021 2020 Interest cost $ 1,853 $ 1,593 $ 1,950 Amortization of prior service cost — 85 425 Service cost 1,132 1,152 1,077 Amortization of net actuarial loss 998 1,443 912 Total $ 3,983 $ 4,273 $ 4,364 The liabilities related to these plans were $61.4 million at November 30, 2022 and $76.3 million at November 30, 2021, and are included in accrued expenses and other liabilities in the consolidated balance sheets. For the years ended November 30, 2022 and 2021, the discount rates we used for the plans were 4.8% and 2.3%, respectively. Benefit payments under our Retirement Plan and DBO Plan are expected to be paid during each year ending November 30 as follows: 2023 — $3.0 million; 2024 — $3.1 million; 2025 — $3.5 million; 2026 — $4.6 million; 2027 — $4.6 million; and for the five years ended November 30, 2032 — $24.4 million in the aggregate. |
Supplemental Disclosure to Cons
Supplemental Disclosure to Consolidated Statements of Cash Flows | 12 Months Ended |
Nov. 30, 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): Years Ended November 30, 2022 2021 2020 Summary of cash and cash equivalents at the end of the year: Homebuilding $ 328,517 $ 290,764 $ 681,190 Financial services 1,681 1,372 1,339 Total $ 330,198 $ 292,136 $ 682,529 Years Ended November 30, 2022 2021 2020 Supplemental disclosure of cash flow information: Interest paid, net of amounts capitalized $ (5,435) $ 7,087 $ 866 Income taxes paid 248,976 68,274 17,253 Income taxes refunded 452 39,450 44,336 Supplemental disclosure of non-cash activities: Increase in inventories due to distributions of land and land development from an unconsolidated joint venture 13,524 9,766 9,350 Increase (decrease) in consolidated inventories not owned (21,433) 7,071 7,254 Inventories acquired through seller financing — 2,910 21,712 Reclassification of federal tax refund from deferred tax assets to receivables — — 82,617 Increase in operating lease right-of-use assets and lease liabilities due to adoption of ASC 842 — — 31,199 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Nov. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation. Our consolidated financial statements have been prepared in accordance with GAAP and include our accounts and those of the consolidated subsidiaries in which we have a controlling financial interest. All intercompany balances and transactions have been eliminated in consolidation. Investments in unconsolidated joint ventures in which we have less than a controlling financial interest are accounted for using the equity method. |
Use of Estimates | 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 | 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. |
Receivables | Receivables. We record receivables net of an allowance for doubtful accounts. This allowance for potential losses is established or maintained for expected uncollectible receivables. The allowance is estimated based on our evaluation of the receivables, taking into account historical collection experience, general economic conditions, specific credit risk of the counterparties and other relevant information. |
Property and Equipment and Depreciation | Property and Equipment and Depreciation. Property and equipment are recorded at cost and are depreciated using the straight-line method over their estimated useful lives as follows: computer software and equipment – two two three |
Homebuilding Operations and Financial Services Operations | Homebuilding Operations. We recognize homebuilding revenue by applying the following steps in determining the timing and amount of revenue to recognize: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract, if applicable; and (5) recognize revenue when (or as) we satisfy a performance obligation. Our home sale transactions are made pursuant to contracts under which we typically have a single performance obligation to deliver a completed home to the homebuyer when closing conditions are met. Revenues from home sales are recognized when we have satisfied the performance obligation within the sales contract, which is generally when title to and possession of the home and the risks and rewards of ownership are transferred to the homebuyer on the closing date. Under our home sale contracts, we typically receive an initial cash deposit from the homebuyer at the time the sales contract is executed and receive the remaining consideration to which we are entitled, through a third-party escrow agent, at closing. Customer deposits related to sold but undelivered homes are included in accrued expenses and other liabilities. Concurrent with the recognition of revenues in our consolidated statements of operations, sales incentives in the form of price concessions on the selling price of a home are recorded as a reduction of revenues. The costs of sales incentives in the form of free or discounted products or services provided to homebuyers, including option upgrades and closing cost allowances, are reflected as construction and land costs because such incentives are identified in our home sale contracts with homebuyers as an intrinsic part of our single performance obligation to deliver and transfer title to their home for the transaction price stated in the contracts. Sales incentives that we may provide in the form of closing cost allowances are immaterial to the related revenues. Cash proceeds from home sale closings held by third-party escrow agents for our benefit, typically for less than five days, are considered deposits in-transit and classified as cash. Land sale transactions are made pursuant to contracts under which we typically have a performance obligation(s) to deliver specified land parcels to the buyer when closing conditions are met. We evaluate each land sale contract to determine our performance obligation(s) under the contract, including whether we have a distinct promise to perform post-closing land development work that is material within the context of the contract, and use objective criteria to determine our completion of the applicable performance obligation(s), whether at a point in time or over time. Revenues from land sales are recognized when we have satisfied the performance obligation(s) within the sales contract, which is generally when title to and possession of the land and the risks and rewards of ownership are transferred to the land buyer on the closing date. Under our land sale contracts, we typically receive an initial cash deposit from the buyer at the time the contract is executed and receive the remaining consideration to which we are entitled, through a third-party escrow agent, at closing. In the limited circumstances where we provide financing to the land buyer, we determine that collectability of the receivable is reasonably assured before we recognize revenue. In instances where we have a distinct and material performance obligation(s) within the context of a land sale contract to perform land development work after the closing date, a portion of the transaction price under the contract is allocated to such performance obligation(s) and is recognized as revenue over time based upon our estimated progress toward the satisfaction of the performance obligation(s). We generally measure our progress based on our costs incurred relative to the total costs expected to satisfy the performance obligation(s). While the payment terms for such a performance obligation(s) vary, we generally receive the final payment when we have completed our land development work to the specifications detailed in the applicable land sale contract and it has been accepted by the land buyer. Homebuilding revenues include forfeited deposits, which occur when home sale or land sale contracts that include a nonrefundable deposit are cancelled. Revenues from forfeited deposits are immaterial. Within our homebuilding operations, substantially all of our contracts with customers and the related performance obligations have an original expected duration of one year or less. Construction and land costs are comprised of direct and allocated costs, including estimated future costs for the limited warranty we provide on our homes, and certain amenities within a community. Land acquisition, land development and other common costs are generally allocated on a relative fair value basis to the homes or lots within the applicable community or land parcel. Land acquisition and land development costs include related interest and real estate taxes. |
Disaggregation of Revenues | Disaggregation of Revenues. Our homebuilding operations accounted for 99.7% of our total revenues for each of the years ended November 30, 2022 and 2021, with most of those revenues generated from home sale contracts with customers. Due to the nature of our revenue-generating activities, we believe the disaggregation of revenues as reported in our consolidated statements of operations, and as disclosed by homebuilding reporting segment in Note 2 – Segment Information and for our financial services reporting segment in Note 3 – Financial Services, fairly depicts how the nature, amount, timing and uncertainty of cash flows are affected by economic factors. |
Inventories | Inventories . Housing and land inventories are stated at cost, unless the carrying value is determined not to be recoverable, in which case the affected inventories are written down to fair value or fair value less associated costs to sell. Real estate assets, such as our housing and land inventories, are tested for recoverability whenever events or changes in circumstances indicate that their carrying value may not be recoverable. Recoverability is measured by comparing the carrying value of an asset to the undiscounted future net cash flows expected to be generated by the asset. These impairment evaluations are significantly impacted by estimates for the amounts and timing of future revenues, costs and expenses, and other factors. If the carrying value of a real estate asset is determined not to be recoverable, the impairment charge to be recognized is measured by the |
Capitalized Interest | Capitalized Interest. 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. |
Fair Value Measurements | Fair Value Measurements. Fair value measurements are used for inventories on a nonrecurring basis when events and circumstances indicate that their carrying value is not recoverable. For these real estate assets, fair value is determined based on the estimated future net cash flows discounted for inherent risk associated with each such asset, or other valuation techniques. |
Warranty Costs | Warranty Costs. We provide a limited warranty on all of our homes. 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 and adjust the amount as necessary based on our assessment. Our warranty liability is presented on a gross basis for all years 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. |
Self-Insurance | Self-Insurance. We self-insure a portion of our overall risk through the use of a captive insurance subsidiary. We record liabilities based on the estimated costs required to cover reported claims, claims incurred but not yet reported, and claim adjustment expenses. These estimated costs are based on an actuarial analysis of our historical claims and expense data, as well as industry data. Our self-insurance liability is presented on a gross basis for all years without consideration of insurance recoveries and amounts we have paid on behalf of and expect to recover from other parties, if any. Estimates of insurance 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. 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 generally 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 certain 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 product 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. |
Community Sales Office and Other Marketing- and Model Home-Related Costs | Community Sales Office and Other Marketing- and Model Home-Related Costs. Community sales office and other marketing- and model home-related costs are either recorded as inventories, capitalized as property and equipment, or expensed to selling, general and administrative expenses as incurred. Costs related to the construction of a model home, inclusive of upgrades that will be sold as part of the home, are recorded as inventories and recognized as construction and land costs when the model home is delivered to a homebuyer. Costs to furnish and ready a model home or on-site community sales facility that will not be sold as part of the model home, such as costs for model furnishings, community sales office and model complex grounds, sales office construction and sales office furniture and equipment, are capitalized as property and equipment under “model furnishings and sales office improvements.” Model furnishings and sales office improvements are depreciated to selling, general and administrative expenses over their estimated useful lives. Other costs related to the marketing of a |
Advertising Costs | Advertising Costs. We expense advertising costs as incurred. |
Legal Fees | Legal Fees. Legal fees associated with litigation and similar proceedings that are not expected to provide a benefit in future periods are generally expensed as incurred. Legal fees associated with land acquisition and development and other activities that are expected to provide a benefit in future periods are capitalized to inventories in our consolidated balance sheets as incurred. |
Stock-Based Compensation | Stock-Based Compensation. We measure and recognize compensation expense associated with our grant of equity-based awards at an amount equal to the fair value of share-based payments granted under compensation arrangements over the vesting period. We estimate the fair value of stock options granted using the Black-Scholes option-pricing model with assumptions based primarily on historical data. We estimate the fair value of other equity-based awards using the closing price of our common stock on the grant date. For PSUs, we recognize compensation expense ratably over the vesting period when it is probable that stated performance targets will be achieved and record cumulative adjustments in the period in which estimates change. We account for forfeitures of equity-based awards as they occur. |
Income Taxes | Income Taxes. The provision for, or benefit from, income taxes is calculated using the asset and liability method, under which deferred tax assets and liabilities are recorded based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are evaluated on a quarterly basis to determine if adjustments to the valuation allowance are required. This evaluation is 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. 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 deferred tax assets in our consolidated balance sheets depends on applicable income tax rates. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss. The accumulated balances of other comprehensive loss in the consolidated balance sheets as of November 30, 2022 and 2021 were comprised solely of adjustments recorded directly to accumulated other comprehensive loss related to our benefit plan obligations. Such adjustments are made annually as of November 30, when our benefit plan obligations are remeasured. |
Earnings Per Share | Earnings Per Share. 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 November 30, 2022, 2021 or 2020. |
Adoption of New Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Adopted | Adoption of New Accounting Pronouncements . In February 2016, the FASB issued Accounting Standards Update No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), which requires leases with original lease terms of more than 12 months to be recorded on the balance sheet. On December 1, 2019, we adopted ASU 2016-02 and its related amendments (collectively, “ASC 842”) using the modified retrospective method. The adoption of ASC 842 resulted in our recording lease right-of-use assets and lease liabilities of $31.2 million on our consolidated balance sheet as of December 1, 2019. Lease right-of-use assets are classified within other assets accrued expenses and other liabilities In February 2018, the FASB issued Accounting Standards Update No. 2018-02, “Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”), which allows a reclassification from accumulated other comprehensive income (loss) to retained earnings for stranded tax effects resulting from the 2019 Tax Cuts and Jobs Act (“TCJA”), and requires certain disclosures about stranded tax effects. We adopted ASU 2018-02 effective December 1, 2019 and elected to reclassify the income tax effects of the TCJA from accumulated other comprehensive loss to retained earnings, which resulted in an increase of $1.6 million to both retained earnings and accumulated other comprehensive loss, with no impact on total stockholders’ equity. In June 2016, the FASB issued Accounting Standards Update No. 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which changes the impairment model for most financial assets and certain other instruments from an incurred loss approach to a new expected credit loss methodology. On December 1, 2020, we adopted ASU 2016-13 using the modified retrospective method and recorded a cumulative effect adjustment to decrease beginning retained earnings by $.2 million, net of tax, to establish an allowance for credit losses for certain receivables on our consolidated balance sheet. The adoption of ASU 2016-13 did not materially impact our consolidated statements of operations or cash flows. 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 2021-01, “Reference Rate Reform (Topic 848): Scope” (“ASU 2021-01”), which clarified the scope and application of the original guidance. We are currently evaluating the potential impact of adopting ASU 2020-04 and ASU 2021-01, but do not expect it to have a material impact on our consolidated financial statements. |
Reclassifications | Reclassifications. Certain amounts in our consolidated financial statements of prior years have been reclassified to conform to the current period presentation. |
Segment Reporting | An operating segment is defined as a component of an enterprise for which separate financial information is available and for which segment results are evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. We have identified each of our homebuilding divisions as an operating segment. Our homebuilding operating segments have been aggregated into four homebuilding reporting segments based primarily on similarities in economic and geographic characteristics, product types, regulatory environments, methods used to sell and construct homes and land acquisition characteristics. We also have one financial services reporting segment. Management evaluates segment performance primarily based on segment pretax results. As of November 30, 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 segment earns revenues primarily from insurance commissions and from the provision of title services. We offer mortgage banking services, including mortgage loan originations, to our homebuyers indirectly through KBHS, our unconsolidated joint venture with GR Alliance. We and GR Alliance each have a 50.0% ownership interest, with GR Alliance providing management oversight of KBHS’ operations. The financial services reporting segment is separately reported in our consolidated financial statements. Corporate and other is a non-operating segment that develops and oversees the implementation of company-wide strategic initiatives and provides support to our reporting segments by centralizing certain administrative functions. Corporate management is responsible for, among other things, evaluating and selecting the geographic markets in which we operate, consistent with our overall business strategy; allocating capital resources to markets for land acquisition and development activities; making major personnel decisions related to employee compensation and benefits; and monitoring the financial and operational performance of our divisions. Corporate and other includes general and administrative expenses related to operating our corporate headquarters. A portion of the expenses incurred by Corporate and other is allocated to our homebuilding reporting segments. |
Inventory Impairment | Each community or land parcel in our owned inventory is assessed to determine if indicators of potential impairment exist. Impairment indicators are assessed separately for each community or land parcel on a quarterly basis and include, but are not limited to, the following: significant decreases in net orders, average selling prices, volume of homes delivered, gross profit margins on homes delivered or projected gross profit margins on homes in backlog or future deliveries; significant increases in budgeted land development and home construction costs or cancellation rates; or projected losses on expected future land sales. If indicators of potential impairment exist for a community or land parcel, the identified asset is evaluated for recoverability. |
Land under Option Arrangements | Our inventory controlled under land option contracts and other similar contracts is assessed to determine whether it continues to meet our investment return standards. Assessments are made separately for each optioned land parcel on a quarterly basis and are affected by the following factors relative to the market in which the asset is located, among others: current and/or anticipated net orders, average selling prices and volume of homes delivered; estimated land development and home construction costs; and projected profitability on expected future housing or land sales. 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. |
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 November 30, 2022 and 2021 was a VIE, but we were not the primary beneficiary of the VIE. Therefore, all of our joint ventures at November 30, 2022 and 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. The use of these contracts generally allows us to reduce the market risks associated with direct land ownership and development, and reduce our capital and financial commitments, including interest and other carrying costs. Under these contracts, which generally do not contain provisions requiring our specific performance, 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. |
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). In making this determination with respect to a land option contract, we consider the non-refundable deposit(s) we have made and any non-reimbursable expenditures we have incurred for land improvement activities or other items up to the assessment date; additional costs associated with abandoning the contract; and our commitments, if any, to incur non-reimbursable costs associated with the contract. |
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 in our consolidated balance sheets for leases with an expected term at the commencement date of more than 12 months. Some of our leases include one or more renewal options, the exercise of which is generally at our discretion. Such options are excluded from the expected term of the lease unless we determine it is reasonably certain the option will be exercised. Lease liabilities are equal to the present value of the remaining lease payments while the amount of lease right-of-use assets is based on the lease liabilities, subject to adjustment, such as for lease incentives. Our leases do not provide a readily determinable implicit interest rate; therefore, we estimate our incremental borrowing rate to calculate the present value of remaining lease payments. In determining our incremental borrowing rate, we considered the lease term, market interest rates, current interest rates on our senior notes and the effects of collateralization. Our lease population at November 30, 2022 was comprised of operating leases where we are the lessee, primarily real estate leases for our corporate offices, division offices and design studios, as well as certain equipment leases. Our lease agreements do not contain any residual value guarantees or material restrictive covenants.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. |
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. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information Relating to Company Reporting Segments | The following tables present financial information relating to our homebuilding reporting segments (in thousands): Years Ended November 30, 2022 2021 2020 Revenues: West Coast $ 3,050,506 $ 2,552,382 $ 1,748,582 Southwest 1,110,045 965,139 796,810 Central 1,749,231 1,503,857 1,192,869 Southeast 970,580 683,651 429,441 Total $ 6,880,362 $ 5,705,029 $ 4,167,702 Pretax income (loss): West Coast $ 519,524 $ 345,714 $ 151,039 Southwest 238,143 186,351 133,386 Central 272,002 200,159 128,802 Southeast 152,178 77,663 22,950 Corporate and other (148,232) (152,976) (104,677) Total $ 1,033,615 $ 656,911 $ 331,500 Equity in income (loss) of unconsolidated joint ventures: West Coast $ (612) $ 62 $ 12,972 Southwest (249) (466) (497) Central — — — Southeast (4) (1) (1) Total $ (865) $ (405) $ 12,474 Inventory impairment and land option contract abandonment charges: West Coast $ 27,354 $ 11,046 $ 21,941 Southwest 900 536 570 Central 3,318 131 5,520 Southeast 5,729 240 638 Total $ 37,301 $ 11,953 $ 28,669 November 30, 2022 2021 Inventories: West Coast $ 2,425,141 $ 2,300,096 Southwest 993,059 875,438 Central 1,278,420 995,811 Southeast 846,556 631,484 Total $ 5,543,176 $ 4,802,829 November 30, 2022 2021 Investments in unconsolidated joint ventures: West Coast $ 41,597 $ 33,576 Southwest 2,680 — Central — — Southeast 2,508 2,512 Total $ 46,785 $ 36,088 Assets: West Coast $ 2,631,598 $ 2,520,374 Southwest 1,074,912 938,300 Central 1,493,486 1,168,242 Southeast 929,208 684,752 Corporate and other 463,194 480,048 Total $ 6,592,398 $ 5,791,716 |
Financial Services (Tables)
Financial Services (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Segment Reporting Information [Line Items] | |
Schedule of Financial Services Income (Loss) | The following tables present financial information relating to our financial services reporting segment (in thousands): Years Ended November 30, 2022 2021 2020 Revenues Insurance commissions $ 12,823 $ 10,486 $ 8,589 Title services 10,572 9,415 6,883 Other 19 — — Total 23,414 19,901 15,472 Expenses General and administrative (5,762) (5,055) (4,083) Operating income 17,652 14,846 11,389 Equity in income of unconsolidated joint ventures 20,799 23,589 21,154 Pretax income $ 38,451 $ 38,435 $ 32,543 |
Financial service | |
Segment Reporting Information [Line Items] | |
Schedule of Financial Services Assets and Liabilities | November 30, 2022 2021 Assets Cash and cash equivalents $ 1,681 $ 1,372 Receivables 3,475 2,166 Investments in unconsolidated joint ventures 26,678 16,317 Other assets (a) 27,698 24,347 Total assets $ 59,532 $ 44,202 Liabilities Accounts payable and accrued expenses $ 3,128 $ 2,685 Total liabilities $ 3,128 $ 2,685 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Earnings Per Share [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): Years Ended November 30, 2022 2021 2020 Numerator: Net income $ 816,666 $ 564,746 $ 296,243 Less: Distributed earnings allocated to nonvested restricted stock (268) (253) (197) Less: Undistributed earnings allocated to nonvested restricted stock (3,904) (2,366) (1,329) Numerator for basic earnings per share 812,494 562,127 294,717 Effect of dilutive securities: Add: Undistributed earnings allocated to nonvested restricted stock 3,904 2,366 1,329 Less: Undistributed earnings reallocated to nonvested restricted stock (3,796) (2,286) (1,278) Numerator for diluted earnings per share $ 812,602 $ 562,207 $ 294,768 Denominator: Weighted average shares outstanding — basic 86,861 90,401 90,464 Effect of dilutive securities: Share-based payments 2,487 3,186 3,622 Weighted average shares outstanding — diluted 89,348 93,587 94,086 Basic earnings per share $ 9.35 $ 6.22 $ 3.26 Diluted earnings per share $ 9.09 $ 6.01 $ 3.13 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Receivables [Abstract] | |
Schedule of Receivables | Receivables consisted of the following (in thousands): November 30, 2022 2021 Due from utility companies, improvement districts and municipalities (a) $ 181,443 $ 151,284 Recoveries related to self-insurance and other legal claims 76,581 95,063 Refundable deposits and bonds 17,610 13,681 Other 52,201 49,359 Subtotal 327,835 309,387 Allowance for doubtful accounts (5,068) (5,196) Total $ 322,767 $ 304,191 (a) These receivables typically relate to infrastructure improvements we make with respect to our communities. We are generally reimbursed for the cost of such improvements when they are accepted by the utility company, improvement district or municipality, or after certain events occur, depending on the terms of the applicable agreements. These events may include, but are not limited to, the connection of utilities or the issuance of bonds by the respective improvement districts or municipalities. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following (in thousands): November 30, 2022 2021 Homes completed or under construction $ 2,414,675 $ 2,103,038 Land under development 3,128,501 2,699,791 Total $ 5,543,176 $ 4,802,829 |
Schedule of Capitalized Interest Costs | Our interest costs were as follows (in thousands): Years Ended November 30, 2022 2021 2020 Capitalized interest at beginning of year $ 161,119 $ 190,113 $ 195,738 Interest incurred 120,859 120,514 124,147 Interest amortized to construction and land costs (a) (136,484) (149,508) (129,772) Capitalized interest at end of year $ 145,494 $ 161,119 $ 190,113 (a) Interest amortized to construction and land costs for the years ended November 30, 2021 and 2020 included nominal amounts related to land sales during the periods. |
Inventory Impairments and Lan_2
Inventory Impairments and Land Option Contract Abandonments (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Inventory Impairments and Land Option Contract Abandonments [Abstract] | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | The following table summarizes ranges for significant quantitative unobservable inputs we utilized in our fair value measurements with respect to impaired communities, other than land held for sale, written down to fair value during the years presented: Years Ended November 30, Unobservable Input (a) 2022 2021 2020 Average selling price $475,500 - $1,076,200 $471,000 - $949,400 $301,600 - $1,127,100 Deliveries per month 2 - 4 4 - 5 1 - 4 Discount rate 17% - 21% 18% - 19% 17% - 18% (a) Ranges of inputs presented primarily reflect differences between the housing markets where each impacted community is located, rather than fluctuations in prevailing market conditions. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The following table presents a summary of our interests in land option contracts and other similar contracts (in thousands): November 30, 2022 November 30, 2021 Cash Aggregate Cash Aggregate Unconsolidated VIEs $ 22,399 $ 635,502 $ 38,333 $ 1,093,669 Other land option contracts and other similar contracts 29,451 529,430 36,176 766,182 Total $ 51,850 $ 1,164,932 $ 74,509 $ 1,859,851 |
Investments in Unconsolidated_2
Investments in Unconsolidated Joint Ventures (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Homebuilding | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of Statements of operations of unconsolidated joint ventures | The following table presents combined condensed information from the statements of operations for our homebuilding unconsolidated joint ventures (in thousands): Years Ended November 30, 2022 2021 2020 Revenues $ 5,251 $ 14,818 $ 127,270 Construction and land costs (3,875) (12,398) (93,162) Other expenses, net (2,935) (2,640) (8,850) Income (loss) $ (1,559) $ (220) $ 25,258 |
Schedule of Balance sheets of unconsolidated joint ventures | The following table presents combined condensed balance sheet information for our homebuilding unconsolidated joint ventures (in thousands): November 30, 2022 2021 Assets Cash $ 14,066 $ 15,731 Receivables 3,394 795 Inventories 114,465 64,034 Other assets 633 50 Total assets $ 132,558 $ 80,610 Liabilities and equity Accounts payable and other liabilities $ 8,369 $ 12,285 Notes payable (a) 34,396 — Equity 89,793 68,325 Total liabilities and equity $ 132,558 $ 80,610 (a) As of November 30, 2022, one of our unconsolidated joint ventures had borrowings outstanding under a revolving line of credit it entered into with a third-party lender in April 2022 to finance its land acquisition, development and construction activities. Borrowings under this line of credit, which has a maximum commitment of $62.0 million, are secured by the underlying property and related project assets. The line of credit is scheduled to mature on April 19, 2026, unless extended or terminated pursuant to its applicable terms. None of our other unconsolidated joint ventures had outstanding debt at November 30, 2022 or 2021. |
Financial service | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of Statements of operations of unconsolidated joint ventures | The following table presents combined condensed information from the statements of operations for our financial services unconsolidated joint ventures, primarily comprised of KBHS (in thousands): Years Ended November 30, 2022 2021 2020 Revenues $ 115,173 $ 126,398 $ 108,417 Expenses (73,573) (79,221) (66,109) Income $ 41,600 $ 47,177 $ 42,308 |
Schedule of Balance sheets of unconsolidated joint ventures | The following table presents combined condensed balance sheet information for our financial services unconsolidated joint ventures, primarily comprised of KBHS (in thousands): November 30, 2022 2021 Assets Cash and cash equivalents $ 28,120 $ 23,916 Mortgage loans held for sale 250,572 234,669 Other assets 33,176 14,060 Total assets $ 311,868 $ 272,645 Liabilities and equity Accounts payable and other liabilities $ 15,590 $ 18,375 Funding facilities 242,944 221,633 Equity 53,334 32,637 Total liabilities and equity $ 311,868 $ 272,645 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): November 30, 2022 2021 Computer software and equipment $ 47,628 $ 39,938 Model furnishings and sales office improvements 100,276 87,702 Leasehold improvements, office furniture and equipment 18,910 17,922 Subtotal 166,814 145,562 Accumulated depreciation (77,580) (69,249) Total $ 89,234 $ 76,313 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Other Assets [Abstract] | |
Schedule of Other Assets | Other assets consisted of the following (in thousands): November 30, 2022 2021 Cash surrender value of corporate-owned life insurance contracts $ 55,591 $ 68,748 Lease right-of-use assets 25,469 27,508 Prepaid expenses 15,645 6,344 Debt issuance costs associated with unsecured revolving credit facility, net 4,346 1,553 Total $ 101,051 $ 104,153 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consisted of the following (in thousands): November 30, 2022 2021 Self-insurance and other legal liabilities $ 234,128 $ 239,129 Employee compensation and related benefits 182,443 192,549 Warranty liability 101,890 96,153 Customer deposits 76,738 71,032 Accrued interest payable 29,989 24,554 Lease liabilities 27,494 29,279 Inventory-related obligations (a) 19,136 36,146 Real estate and business taxes 17,557 17,563 Federal and state taxes payable 3,671 8,290 Other 43,925 42,210 Total $ 736,971 $ 756,905 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Leases [Abstract] | |
Schedule of Lease Information | The following table presents our lease right-of-use assets, lease liabilities and the weighted-average remaining lease term and weighted-average discount rate (incremental borrowing rate) used in calculating the lease liabilities (dollars in thousands): November 30, 2022 2021 Lease right-of-use assets (a) $ 25,545 $ 27,693 Lease liabilities (b) 27,580 29,481 Weighted-average remaining lease term 3.5 years 3.8 years Weighted-average discount rate (incremental borrowing rate) 5.0 % 5.1 % (a) Represents lease right-of-use assets within our homebuilding operations and financial services operations of $25.5 million and $.1 million, respectively, at November 30, 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 $27.5 million and $.1 million, respectively, at November 30, 2022, and $29.3 million and $.2 million, respectively, at November 30, 2021. The following table presents additional information about our leases (in thousands): Years Ended November 30, 2022 2021 Lease right-of-use assets obtained in exchange for new lease liabilities $ 3,941 $ 1,526 Cash payments on lease liabilities 11,169 11,613 |
Schedule of Future Minimum Lease Payments | As of November 30, 2022, the future minimum lease payments required under our leases are as follows (in thousands): Years Ending November 30, 2023 $ 10,589 2024 8,235 2025 6,159 2026 2,296 2027 1,761 Thereafter 1,122 Total lease payments 30,162 Less: Interest (2,582) Present value of lease liabilities $ 27,580 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Component of Income Tax Benefit (Expense) in the Consolidated Statement of Operations | The components of the income tax expense in our consolidated statements of operations are as follows (in thousands): Federal State Total 2022 Current $ (194,400) $ (49,500) $ (243,900) Deferred (2,900) (8,600) (11,500) Income tax expense $ (197,300) $ (58,100) $ (255,400) 2021 Current $ (44,300) $ (33,700) $ (78,000) Deferred (47,200) (5,400) (52,600) Income tax expense $ (91,500) $ (39,100) $ (130,600) 2020 Current $ (12,100) $ (3,500) $ (15,600) Deferred (36,200) (16,000) (52,200) Income tax expense $ (48,300) $ (19,500) $ (67,800) |
Schedule of Components Of Deferred Tax Liabilities And Assets | Significant components of our deferred tax liabilities and assets are as follows (in thousands): November 30, 2022 2021 Deferred tax liabilities: Capitalized expenses $ 32,646 $ 36,660 State taxes 18,698 20,558 Depreciation and amortization 8,628 3,926 Other 416 1,555 Total 60,388 62,699 November 30, 2022 2021 Deferred tax assets: Warranty, legal and other accruals $ 63,424 $ 54,826 NOLs from 2006 through 2022 60,680 73,662 Employee benefits 55,382 56,384 Inventory impairment and land option contract abandonment charges 24,871 30,767 Capitalized expenses 24,665 26,849 Partnerships and joint ventures 7,386 8,265 Tax credits — 4,634 Other 1,948 2,090 Total 238,356 257,477 Valuation allowance (17,100) (17,400) Total 221,256 240,077 Deferred tax assets, net $ 160,868 $ 177,378 |
Schedule of 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 | The income tax expense computed at the statutory U.S. federal income tax rate and the income tax expense provided in our consolidated statements of operations differ as follows (dollars in thousands): Years Ended November 30, 2022 2021 2020 $ % $ % $ % Income tax expense computed at statutory rate $ (225,121) (21.0) % $ (146,023) (21.0) % $ (76,449) (21.0) % Tax credits 22,565 2.1 49,522 7.1 18,734 5.1 Depreciation and amortization 1,444 .2 5,872 .8 9,910 2.7 Valuation allowance for deferred tax assets 300 — 600 .1 1,200 .3 Non-deductible compensation (7,905) (0.7) (9,241) (1.3) (4,812) (1.3) State taxes, net of federal income tax benefit (46,139) (4.3) (31,378) (4.5) (16,395) (4.4) Other, net (544) (.1) 48 — 12 — Income tax expense $ (255,400) (23.8) % $ (130,600) (18.8) % $ (67,800) (18.6) % |
Schedule of Reconciliation of the beginning and ending balances of the gross unrecognized benefits | A reconciliation of the beginning and ending balances of gross unrecognized tax benefits, including interest and penalties, is as follows (in thousands): Years Ended November 30, 2022 2021 2020 Balance at beginning of year $ 930 $ — $ — Increase as a result of tax position taken in prior years 45 930 — Balance at end of year $ 975 $ 930 $ — |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Mortgages and Notes Payable | Notes payable consisted of the following (in thousands): November 30, 2022 2021 Unsecured revolving credit facility $ 150,000 $ — Senior unsecured term loan 357,485 — Mortgages and land contracts due to land sellers and other loans (at an interest rate of 4.5% at November 30, 2022 and 2021) 4,760 5,327 7.50% Senior notes due September 15, 2022 — 349,471 7.625% Senior notes due May 15, 2023 — 350,788 6.875% Senior notes due June 15, 2027 297,595 297,161 4.80% Senior notes due November 15, 2029 297,230 296,905 7.25% Senior notes due July 15, 2030 345,663 — 4.00% Senior notes due June 15, 2031 385,778 385,375 Total $ 1,838,511 $ 1,685,027 The key terms of each of our senior notes outstanding as of November 30, 2022 were as follows (dollars in thousands): Redeemable Prior to Maturity Effective Interest Rate Notes Payable Principal Issuance Date Maturity Date 6.875% Senior notes $ 300,000 February 20, 2019 June 15, 2027 Yes (a) 7.1 % 4.80% Senior notes 300,000 November 4, 2019 November 15, 2029 Yes (a) 5.0 7.25% Senior notes 350,000 June 22, 2022 July 15, 2030 Yes (b) 7.5 4.00% Senior notes 390,000 June 9, 2021 June 15, 2031 Yes (a) 4.2 (a) At our option, these notes may be redeemed, in whole at any time or from time to time in part, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes being redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the notes being redeemed (exclusive of interest accrued to the applicable redemption date), discounted to the redemption date at a defined rate, plus, in each case, accrued and unpaid interest on the notes being redeemed to, but excluding, the applicable redemption date, except that six months prior to the stated maturity date for these notes, the redemption price will be equal to 100% of the principal amount of the notes being redeemed, plus accrued and unpaid interest on the notes being redeemed to, but excluding, the applicable redemption date. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on a Nonrecurring Basis | The following table presents the fair value hierarchy and our assets measured at fair value on a nonrecurring basis (in thousands): November 30, 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 $ 65,372 $ (24,077) $ 41,295 $ 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 |
Schedule of Carrying Values and Estimated Fair Values of Financial Instruments | The following table presents the fair value hierarchy, carrying values and estimated fair values of our financial instruments, except those for which the carrying values approximate fair values (in thousands): November 30, 2022 2021 Description Fair Value Hierarchy Carrying Estimated Carrying Estimated Financial Liabilities: Senior notes Level 2 $ 1,326,266 $ 1,205,875 $ 1,679,700 $ 1,796,500 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | The changes in our warranty liability were as follows (in thousands): Years Ended November 30, 2022 2021 2020 Balance at beginning of year $ 96,153 $ 91,646 $ 88,839 Warranties issued 39,476 34,627 29,505 Payments (33,739) (26,120) (23,098) Adjustments — (4,000) (3,600) Balance at end of year $ 101,890 $ 96,153 $ 91,646 |
Schedule of Self-Insurance Liability | The changes in our self-insurance liability were as follows (in thousands): Years Ended November 30, 2022 2021 2020 Balance at beginning of year $ 189,131 $ 194,180 $ 177,765 Self-insurance provided 21,926 19,665 15,399 Payments (21,984) (29,369) (4,375) Adjustments (a) (13,096) 4,655 5,391 Balance at end of year $ 175,977 $ 189,131 $ 194,180 (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; an adjustment to increase our previously recorded liability by $7.0 million in 2022 and $6.8 million in 2021; and an adjustment to reduce our previously recorded liability by $4.0 million in 2020. The 2022 amount primarily reflected a change in the actuarially determined estimate of probable recoveries largely associated with higher self-insured retention levels in our more recent coverage years, and an insurance carrier’s payment of a portion of a townhome claim settlement reached in the 2022 first quarter. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Equity [Abstract] | |
Schedule of Changes in the Balances of Each Component of Accumulated Other Comprehensive Loss | The following table presents the changes in the balances of each component of accumulated other comprehensive loss (in thousands): Postretirement Benefit Plan Adjustments Total Accumulated Other Comprehensive Loss Balance at November 30, 2020 $ (22,276) Other comprehensive income before reclassifications 2,664 Amounts reclassified from accumulated other comprehensive loss 1,661 Income tax expense related to items of other comprehensive income (1,168) Other comprehensive income, net of tax 3,157 Balance at November 30, 2021 (19,119) Other comprehensive income before reclassifications 17,463 Amounts reclassified from accumulated other comprehensive loss 1,090 Income tax expense related to items of other comprehensive income (5,009) Other comprehensive income, net of tax 13,544 Balance at November 30, 2022 $ (5,575) |
Schedule of Amounts Reclassified from Accumulated Other Comprehensive Loss | The amounts reclassified from accumulated other comprehensive loss consisted of the following (in thousands): Years Ended November 30, Details About Accumulated Other Comprehensive Loss Components 2022 2021 2020 Postretirement benefit plan adjustments Amortization of net actuarial loss $ 1,090 $ 1,575 $ 963 Amortization of prior service cost — 86 425 Total reclassifications (a) $ 1,090 $ 1,661 $ 1,388 (a) The accumulated other comprehensive loss components are included in the computation of net periodic benefit costs as further discussed in Note 22 – Postretirement Benefits. |
Employee Benefit and Stock Pl_2
Employee Benefit and Stock Plans (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Based Compensation Expense | The following table presents our stock-based compensation expense (in thousands): Years Ended November 30, 2022 2021 2020 Restricted stock $ 8,743 $ 7,139 $ 6,993 PSUs 18,757 19,512 13,069 Director awards 1,964 2,253 1,469 Total $ 29,464 $ 28,904 $ 21,531 |
Schedule of Stock Option Transactions | Stock option transactions are summarized as follows: Years Ended November 30, 2022 2021 2020 Options Weighted Options Weighted Options Weighted Options outstanding at beginning of year 1,674,393 $ 15.56 2,462,714 $ 15.32 4,163,481 $ 13.00 Granted — — — — — — Exercised — — (788,321) 14.83 (1,694,767) 9.52 Cancelled — — — — (6,000) 45.16 Options outstanding at end of year 1,674,393 $ 15.56 1,674,393 $ 15.56 2,462,714 $ 15.32 Options exercisable at end of year 1,674,393 $ 15.56 1,674,393 $ 15.56 2,462,714 $ 15.32 Options available for grant at end of year 3,260,585 4,096,427 4,888,526 |
Schedule of Stock Options Outstanding and Stock Options Exercisable | Stock options outstanding and stock options exercisable at November 30, 2022 are summarized as follows: Options Outstanding Options Exercisable Range of Exercise Price Options Weighted Weighted Options Weighted Weighted $6.32 to $14.62 201,517 $ 14.62 1.9 201,517 $ 14.62 $14.63 to $14.92 663,000 14.92 2.9 663,000 14.92 $14.93 to $16.21 611,876 16.21 3.8 611,876 16.21 $16.22 to $16.63 198,000 16.63 0.9 198,000 16.63 $6.32 to $16.63 1,674,393 $ 15.56 2.9 1,674,393 $ 15.56 2.9 |
Schedule of Restricted Stock Transactions | Restricted stock transactions are summarized as follows: Years Ended November 30, 2022 2021 2020 Shares Weighted Shares Weighted Shares Weighted Outstanding at beginning of year 431,191 $ 19.22 423,215 $ 19.56 500,066 $ 20.66 Granted 347,131 27.49 286,709 40.55 265,187 35.57 Vested (192,840) 29.09 (265,131) 42.04 (304,095) 34.25 Cancelled (41,596) 38.58 (13,602) 34.43 (37,943) 28.18 Outstanding at end of year 543,886 $ 19.50 431,191 $ 19.22 423,215 $ 19.56 |
Schedule of Share Based Payments Performance Shares Activity | PSU transactions are summarized as follows: Years Ended November 30, 2022 2021 2020 Shares Weighted Shares Weighted Shares Weighted Outstanding at beginning of year 1,392,864 $ 23.48 1,346,870 $ 23.25 1,262,664 $ 22.13 Granted 650,077 33.34 465,064 39.67 397,452 40.05 Vested (674,677) 38.00 (419,070) 40.70 (313,246) 40.04 Cancelled (95,107) 38.55 — — — — Outstanding at end of year 1,273,157 $ 19.70 1,392,864 $ 23.48 1,346,870 $ 23.25 |
Postretirement Benefits (Tables
Postretirement Benefits (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The net periodic benefit cost of our Retirement Plan and DBO Plan is included in selling, general and administrative expenses in our consolidated statements of operations and consisted of the following (in thousands): Years Ended November 30, 2022 2021 2020 Interest cost $ 1,853 $ 1,593 $ 1,950 Amortization of prior service cost — 85 425 Service cost 1,132 1,152 1,077 Amortization of net actuarial loss 998 1,443 912 Total $ 3,983 $ 4,273 $ 4,364 |
Supplemental Disclosure to Co_2
Supplemental Disclosure to Consolidated Statements of Cash Flows (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Supplemental Disclosures to the Consolidated Statements Of Cash Flows | The following are supplemental disclosures to the consolidated statements of cash flows (in thousands): Years Ended November 30, 2022 2021 2020 Summary of cash and cash equivalents at the end of the year: Homebuilding $ 328,517 $ 290,764 $ 681,190 Financial services 1,681 1,372 1,339 Total $ 330,198 $ 292,136 $ 682,529 Years Ended November 30, 2022 2021 2020 Supplemental disclosure of cash flow information: Interest paid, net of amounts capitalized $ (5,435) $ 7,087 $ 866 Income taxes paid 248,976 68,274 17,253 Income taxes refunded 452 39,450 44,336 Supplemental disclosure of non-cash activities: Increase in inventories due to distributions of land and land development from an unconsolidated joint venture 13,524 9,766 9,350 Increase (decrease) in consolidated inventories not owned (21,433) 7,071 7,254 Inventories acquired through seller financing — 2,910 21,712 Reclassification of federal tax refund from deferred tax assets to receivables — — 82,617 Increase in operating lease right-of-use assets and lease liabilities due to adoption of ASC 842 — — 31,199 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
May 31, 2020 | Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | Dec. 01, 2020 | Dec. 01, 2019 | Nov. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Cash equivalents | $ 15,800 | $ 15,400 | |||||
Depreciation expense | 32,300 | 28,600 | $ 28,400 | ||||
Advertising costs incurred | 37,100 | 28,000 | 29,300 | ||||
Legal Fees | 10,600 | 11,500 | 11,600 | ||||
Operating lease, right-of-use asset | 25,545 | 27,693 | $ 31,200 | ||||
Operating lease liability | $ 27,580 | $ 29,481 | $ 31,200 | ||||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets | Other assets | ||||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accrued Liabilities | Accrued Liabilities | Accounts payable and accrued expenses | ||||
Stockholder's equity | $ 3,660,795 | $ 3,019,475 | 2,665,769 | $ 2,383,122 | |||
Reclassification of stranded tax effects | 1,600 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Stockholder's equity | (226) | 1,510 | |||||
Retained Earnings | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Stockholder's equity | 3,143,578 | 2,379,364 | 1,868,896 | 2,157,183 | |||
Reclassification of stranded tax effects | 1,643 | ||||||
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Stockholder's equity | $ (226) | $ (200) | $ 1,500 | $ 1,510 | |||
Homebuilding | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Operating lease, right-of-use asset | 25,469 | 27,508 | |||||
Operating lease liability | $ 27,494 | $ 29,279 | |||||
Product Concentration Risk | Revenue Benchmark | Homebuilding | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Concentration risk (in percent) | 99.70% | 99.70% | |||||
Minimum | Computer Hardware and Software | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Estimated useful life for depreciation of property and equipment | 2 years | ||||||
Minimum | Model Furnishings and Sales Office Improvements | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Estimated useful life for depreciation of property and equipment | 2 years | ||||||
Minimum | Furniture and Fixtures | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Estimated useful life for depreciation of property and equipment | 3 years | ||||||
Maximum | Computer Hardware and Software | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Estimated useful life for depreciation of property and equipment | 15 years | ||||||
Maximum | Model Furnishings and Sales Office Improvements | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Estimated useful life for depreciation of property and equipment | 3 years | ||||||
Maximum | Furniture and Fixtures | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Estimated useful life for depreciation of property and equipment | 10 years | ||||||
Employee Severance | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Severance charges | $ 6,700 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 12 Months Ended |
Nov. 30, 2022 segment | |
KBHS, LLC | Financial service | |
Segment Reporting Information [Line Items] | |
Ownership interest in joint venture | 50% |
KBHS, LLC | GR Alliance, LLC | |
Segment Reporting Information [Line Items] | |
Ownership interest in joint venture | 50% |
Homebuilding | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 4 |
Financial services | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 1 |
Segment Information (Segment Fi
Segment Information (Segment Financial Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 6,903,776 | $ 5,724,930 | $ 4,183,174 |
Pretax income (loss) | 1,072,066 | 695,346 | 364,043 |
Equity in income of unconsolidated joint ventures | 19,934 | 23,184 | 33,628 |
Inventory impairment and land option contract abandonment charges: | 37,301 | 11,953 | 28,669 |
Inventories: | 5,543,176 | 4,802,829 | |
Total assets | 6,651,930 | 5,835,918 | |
Homebuilding | |||
Segment Reporting Information [Line Items] | |||
Revenues | 6,880,362 | 5,705,029 | 4,167,702 |
Pretax income (loss) | 1,033,615 | 656,911 | 331,500 |
Equity in income of unconsolidated joint ventures | (865) | (405) | 12,474 |
Inventory impairment and land option contract abandonment charges: | 37,301 | 11,953 | 28,669 |
Inventories: | 5,543,176 | 4,802,829 | |
Investments in unconsolidated joint ventures | 46,785 | 36,088 | |
Total assets | 6,592,398 | 5,791,716 | |
Homebuilding | West Coast | |||
Segment Reporting Information [Line Items] | |||
Revenues | 3,050,506 | 2,552,382 | 1,748,582 |
Pretax income (loss) | 519,524 | 345,714 | 151,039 |
Equity in income of unconsolidated joint ventures | (612) | 62 | 12,972 |
Inventory impairment and land option contract abandonment charges: | 27,354 | 11,046 | 21,941 |
Inventories: | 2,425,141 | 2,300,096 | |
Investments in unconsolidated joint ventures | 41,597 | 33,576 | |
Total assets | 2,631,598 | 2,520,374 | |
Homebuilding | Southwest | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,110,045 | 965,139 | 796,810 |
Pretax income (loss) | 238,143 | 186,351 | 133,386 |
Equity in income of unconsolidated joint ventures | (249) | (466) | (497) |
Inventory impairment and land option contract abandonment charges: | 900 | 536 | 570 |
Inventories: | 993,059 | 875,438 | |
Investments in unconsolidated joint ventures | 2,680 | 0 | |
Total assets | 1,074,912 | 938,300 | |
Homebuilding | Central | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,749,231 | 1,503,857 | 1,192,869 |
Pretax income (loss) | 272,002 | 200,159 | 128,802 |
Equity in income of unconsolidated joint ventures | 0 | 0 | 0 |
Inventory impairment and land option contract abandonment charges: | 3,318 | 131 | 5,520 |
Inventories: | 1,278,420 | 995,811 | |
Investments in unconsolidated joint ventures | 0 | 0 | |
Total assets | 1,493,486 | 1,168,242 | |
Homebuilding | Southeast | |||
Segment Reporting Information [Line Items] | |||
Revenues | 970,580 | 683,651 | 429,441 |
Pretax income (loss) | 152,178 | 77,663 | 22,950 |
Equity in income of unconsolidated joint ventures | (4) | (1) | (1) |
Inventory impairment and land option contract abandonment charges: | 5,729 | 240 | 638 |
Inventories: | 846,556 | 631,484 | |
Investments in unconsolidated joint ventures | 2,508 | 2,512 | |
Total assets | 929,208 | 684,752 | |
Homebuilding | Corporate and other | |||
Segment Reporting Information [Line Items] | |||
Pretax income (loss) | (148,232) | (152,976) | $ (104,677) |
Total assets | $ 463,194 | $ 480,048 |
Financial Services (Schedule of
Financial Services (Schedule of Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Financial services: | |||
Total | $ 6,903,776 | $ 5,724,930 | $ 4,183,174 |
Expenses | |||
Equity in income of unconsolidated joint ventures | 19,934 | 23,184 | 33,628 |
Total pretax income | 1,072,066 | 695,346 | 364,043 |
Financial service | |||
Financial services: | |||
Insurance commissions | 12,823 | 10,486 | 8,589 |
Title services | 10,572 | 9,415 | 6,883 |
Other | 19 | 0 | 0 |
Total | 23,414 | 19,901 | 15,472 |
Expenses | |||
General and administrative | (5,762) | (5,055) | (4,083) |
Operating income | 17,652 | 14,846 | 11,389 |
Equity in income of unconsolidated joint ventures | 20,799 | 23,589 | 21,154 |
Total pretax income | $ 38,451 | $ 38,435 | $ 32,543 |
Financial Services (Schedule _2
Financial Services (Schedule of Assets and Liabilities) (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Assets | ||||
Cash and cash equivalents | $ 330,198 | $ 292,136 | $ 682,529 | |
Total assets | 6,651,930 | 5,835,918 | ||
Financial service | ||||
Assets | ||||
Cash and cash equivalents | 1,681 | 1,372 | $ 1,339 | |
Receivables | 3,475 | 2,166 | ||
Investments in unconsolidated joint ventures | 26,678 | 16,317 | ||
Other assets | [1] | 27,698 | 24,347 | |
Total assets | 59,532 | 44,202 | ||
Liabilities | ||||
Accounts payable and accrued expenses | 3,128 | 2,685 | ||
Total liabilities | 3,128 | 2,685 | ||
Contract assets for estimated future renewal commissions | $ 27,600 | $ 24,100 | ||
[1]Other assets at November 30, 2022 and 2021 included $27.6 million and $24.1 million, respectively, of contract assets for estimated future renewal commissions |
Earnings Per Share (Basic and D
Earnings Per Share (Basic and Diluted Loss Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Numerator: | |||
Net income | $ 816,666 | $ 564,746 | $ 296,243 |
Less: Distributed earnings allocated to nonvested restricted stock | (268) | (253) | (197) |
Less: Undistributed earnings allocated to nonvested restricted stock | (3,904) | (2,366) | (1,329) |
Numerator for basic earnings per share | 812,494 | 562,127 | 294,717 |
Add: Undistributed earnings allocated to nonvested restricted stock | 3,904 | 2,366 | 1,329 |
Less: Undistributed earnings reallocated to nonvested restricted stock | (3,796) | (2,286) | (1,278) |
Numerator for diluted earnings per share | $ 812,602 | $ 562,207 | $ 294,768 |
Denominator: | |||
Weighted average shares outstanding — basic (in shares) | 86,861 | 90,401 | 90,464 |
Effect of dilutive securities: Share-based payments (in shares) | 2,487 | 3,186 | 3,622 |
Weighted average shares outstanding — diluted (in shares) | 89,348 | 93,587 | 94,086 |
Basic earnings per share (in dollars per share) | $ 9.35 | $ 6.22 | $ 3.26 |
Diluted earnings per share (in dollars per share) | $ 9.09 | $ 6.01 | $ 3.13 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 | 0 |
Receivables (Details)
Receivables (Details) - Homebuilding - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Due from utility companies, improvement districts and municipalities | [1] | $ 181,443 | $ 151,284 |
Recoveries related to self-insurance and other legal claims | 76,581 | 95,063 | |
Refundable deposits and bonds | 17,610 | 13,681 | |
Other | 52,201 | 49,359 | |
Subtotal | 327,835 | 309,387 | |
Allowance for doubtful accounts | (5,068) | (5,196) | |
Total | $ 322,767 | $ 304,191 | |
[1]These receivables typically relate to infrastructure improvements we make with respect to our communities. We are generally reimbursed for the cost of such improvements when they are accepted by the utility company, improvement district or municipality, or after certain events occur, depending on the terms of the applicable agreements. These events may include, but are not limited to, the connection of utilities or the issuance of bonds by the respective improvement districts or municipalities |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 |
Inventories | ||
Homes completed or under construction | $ 2,414,675 | $ 2,103,038 |
Land under development | 3,128,501 | 2,699,791 |
Total | $ 5,543,176 | $ 4,802,829 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Millions | Nov. 30, 2022 | Nov. 30, 2021 |
Inventory Disclosure [Abstract] | ||
Land held for future development or sale | $ 10.2 | $ 44.6 |
Land held for future development | $ 11.4 | $ 0.6 |
Inventories (Schedule of Capita
Inventories (Schedule of Capitalized Interest Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Interest Costs | |||
Capitalized interest at beginning of year | $ 161,119 | $ 190,113 | $ 195,738 |
Interest incurred | 120,859 | 120,514 | 124,147 |
Interest amortized to construction and land costs | (136,484) | (149,508) | (129,772) |
Capitalized interest at end of year | $ 145,494 | $ 161,119 | $ 190,113 |
Inventory Impairments and Lan_3
Inventory Impairments and Land Option Contract Abandonments (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Nov. 30, 2022 USD ($) community property | Nov. 30, 2021 USD ($) property community | Nov. 30, 2020 USD ($) property | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Number of land parcels or communities evaluated for recoverability | property | 5 | 1 | 11 |
Carrying value of communities of land parcels evaluated for impairment | $ 118.7 | $ 29.9 | $ 123.4 |
Impairment of real estate | $ 24.1 | $ 9.9 | $ 22.7 |
Number of land parcels or communities associated with non cash inventory impairment charges | property | 4 | 2 | 10 |
Aggregate carrying value of inventory impacted by pretax, noncash inventory impairment charges | $ 102.9 | $ 87.7 | |
Number of communities and various other land parcels impacted by pretax, noncash inventory impairment charges | community | 8 | 11 | |
Expected realization period of inventory maximum | 5 years | ||
Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Expected realization period of inventory maximum | 1 year | ||
Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Expected realization period of inventory maximum | 10 years | ||
Estimate of Fair Value Measurement | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Fair value | $ 41.3 | $ 18 | $ 46.5 |
Land Option Contract Abandonment | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Loss on contract termination | $ 13.2 | $ 2.1 | $ 5.9 |
Inventory Impairments and Lan_4
Inventory Impairments and Land Option Contract Abandonments (Valuation Inputs) (Details) | 12 Months Ended | |||||
Nov. 30, 2022 USD ($) delivery | Nov. 30, 2021 USD ($) delivery | Nov. 30, 2020 USD ($) delivery | ||||
Minimum | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Average selling price | $ | [1] | $ 475,500 | $ 471,000 | $ 301,600 | ||
Deliveries per month | delivery | [1] | 2 | 4 | 1 | ||
Discount rate | [1] | 17% | 18% | 17% | ||
Maximum | ||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||||
Average selling price | $ | [1] | $ 1,076,200 | $ 949,400 | $ 1,127,100 | ||
Deliveries per month | delivery | [1] | 4 | 5 | 4 | ||
Discount rate | 21% | [1] | 19% | [1] | 18% | |
[1]Ranges of inputs presented 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 | Nov. 30, 2022 USD ($) joint_venture | Nov. 30, 2021 USD ($) joint_venture | Nov. 30, 2020 joint_venture |
Variable Interest Entity [Line Items] | |||
Number of investments in unconsolidated joint ventures | joint_venture | 6 | 6 | 5 |
Cash Deposits | $ 51,850 | $ 74,509 | |
Aggregate Purchase Price | 1,164,932 | 1,859,851 | |
Acquisition costs related to land option contracts and other similar contracts | 33,100 | 38,100 | |
Increase in inventories and accrued expenses and other liabilities | $ 5,100 | $ 26,500 | |
Unconsolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Number of investments in unconsolidated joint ventures | joint_venture | 1 | 1 | |
Cash Deposits | $ 22,399 | $ 38,333 | |
Aggregate Purchase Price | 635,502 | 1,093,669 | |
Other land option contracts and other similar contracts | |||
Variable Interest Entity [Line Items] | |||
Cash Deposits | 29,451 | 36,176 | |
Aggregate Purchase Price | $ 529,430 | $ 766,182 |
Investments in Unconsolidated_3
Investments in Unconsolidated Joint Ventures (Financial Information for Unconsolidated Joint Ventures) (Details) $ in Thousands | 12 Months Ended | ||||
Nov. 30, 2022 USD ($) joint_venture | Nov. 30, 2021 USD ($) joint_venture | Nov. 30, 2020 USD ($) joint_venture | Nov. 30, 2019 USD ($) | ||
Statements of Operations of Unconsolidated Joint Ventures [Abstract] | |||||
Net income | $ 816,666 | $ 564,746 | $ 296,243 | ||
Balance Sheets of Unconsolidated Joint Ventures [Abstract] | |||||
Cash and cash equivalents | 330,198 | 292,136 | 682,529 | ||
Total assets | 6,651,930 | 5,835,918 | |||
Liabilities and stockholders’ equity | |||||
Equity | 3,660,795 | 3,019,475 | $ 2,665,769 | $ 2,383,122 | |
Total liabilities and stockholders’ equity | $ 6,651,930 | $ 5,835,918 | |||
Number of investments in unconsolidated joint ventures | joint_venture | 6 | 6 | 5 | ||
Number of unconsolidated joint ventures with loan commitments | joint_venture | 1 | ||||
Number of Other Unconsolidated Joint Ventures With Outstanding Debt | joint_venture | 0 | 0 | |||
Homebuilding | |||||
Balance Sheets of Unconsolidated Joint Ventures [Abstract] | |||||
Cash and cash equivalents | $ 328,517 | $ 290,764 | $ 681,190 | ||
Other assets | 101,051 | 104,153 | |||
Total assets | 6,592,398 | 5,791,716 | |||
Financial service | |||||
Balance Sheets of Unconsolidated Joint Ventures [Abstract] | |||||
Cash and cash equivalents | 1,681 | 1,372 | 1,339 | ||
Other assets | [1] | 27,698 | 24,347 | ||
Total assets | 59,532 | 44,202 | |||
Financial service | Interest Rate Lock Commitments | |||||
Liabilities and stockholders’ equity | |||||
Derivative asset, notional amount | 29,800 | 9,500 | |||
Change in fair value included in gain on sale of mortgage loans held for sale | 20,300 | 2,800 | 4,000 | ||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Line of Credit | |||||
Liabilities and stockholders’ equity | |||||
Line of credit facility, current borrowing capacity | 62,000 | ||||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Homebuilding | |||||
Statements of Operations of Unconsolidated Joint Ventures [Abstract] | |||||
Revenues | 5,251 | 14,818 | 127,270 | ||
Construction and land costs | (3,875) | (12,398) | (93,162) | ||
Other expenses, net | (2,935) | (2,640) | (8,850) | ||
Net income | (1,559) | (220) | 25,258 | ||
Balance Sheets of Unconsolidated Joint Ventures [Abstract] | |||||
Cash | 14,066 | 15,731 | |||
Receivables | 3,394 | 795 | |||
Inventories | 114,465 | 64,034 | |||
Other assets | 633 | 50 | |||
Total assets | 132,558 | 80,610 | |||
Liabilities and stockholders’ equity | |||||
Accounts payable and other liabilities | 8,369 | 12,285 | |||
Notes payable | 34,396 | 0 | |||
Equity | 89,793 | 68,325 | |||
Total liabilities and stockholders’ equity | 132,558 | 80,610 | |||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Financial service | |||||
Statements of Operations of Unconsolidated Joint Ventures [Abstract] | |||||
Revenues | 115,173 | 126,398 | 108,417 | ||
Other expenses, net | (73,573) | (79,221) | (66,109) | ||
Net income | 41,600 | 47,177 | $ 42,308 | ||
Balance Sheets of Unconsolidated Joint Ventures [Abstract] | |||||
Cash and cash equivalents | 28,120 | 23,916 | |||
Mortgages Held-for-sale, Fair Value Disclosure | 250,572 | 234,669 | |||
Other assets | 33,176 | 14,060 | |||
Total assets | 311,868 | 272,645 | |||
Liabilities and stockholders’ equity | |||||
Accounts payable and other liabilities | 15,590 | 18,375 | |||
Funding facilities | 242,944 | 221,633 | |||
Equity | 53,334 | 32,637 | |||
Total liabilities and stockholders’ equity | $ 311,868 | $ 272,645 | |||
[1]Other assets at November 30, 2022 and 2021 included $27.6 million and $24.1 million, respectively, of contract assets for estimated future renewal commissions |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 166,814 | $ 145,562 |
Accumulated depreciation | (77,580) | (69,249) |
Total | 89,234 | 76,313 |
Computer software and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 47,628 | 39,938 |
Model furnishings and sales office improvements | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 100,276 | 87,702 |
Leasehold improvements, office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 18,910 | $ 17,922 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 | Dec. 01, 2019 |
Other Assets [Line Items] | |||
Lease right-of-use assets | $ 25,545 | $ 27,693 | $ 31,200 |
Homebuilding | |||
Other Assets [Line Items] | |||
Cash surrender value of corporate-owned life insurance contracts | 55,591 | 68,748 | |
Lease right-of-use assets | 25,469 | 27,508 | |
Prepaid expenses | 15,645 | 6,344 | |
Debt issuance costs associated with unsecured revolving credit facility, net | 4,346 | 1,553 | |
Total | $ 101,051 | $ 104,153 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | Dec. 01, 2019 | Nov. 30, 2019 | |
Lessee, Lease, Description [Line Items] | ||||||
Self-insurance and other legal liabilities | $ 234,128 | $ 239,129 | ||||
Employee compensation and related benefits | 182,443 | 192,549 | ||||
Warranty liability | 101,890 | 96,153 | $ 91,646 | $ 88,839 | ||
Customer deposits | 76,738 | 71,032 | ||||
Accrued interest payable | 29,989 | 24,554 | ||||
Lease liabilities | 27,580 | 29,481 | $ 31,200 | |||
Inventory-related obligations | [1] | 19,136 | 36,146 | |||
Real estate and business taxes | 17,557 | 17,563 | ||||
Federal and state taxes payable | 3,671 | 8,290 | ||||
Other | 43,925 | 42,210 | ||||
Total | 736,971 | 756,905 | ||||
Homebuilding | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Lease liabilities | 27,494 | 29,279 | ||||
Total | $ 736,971 | $ 756,905 | ||||
[1]Represents liabilities for financing arrangements discussed in Note 8 – Variable Interest Entities, as well as liabilities for fixed or determinable amounts associated with 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 (Narrative) (Details)
Leases (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Nov. 30, 2022 USD ($) leaseRenewalOption | Nov. 30, 2021 USD ($) | Nov. 30, 2020 USD ($) | |
Leases [Abstract] | |||
Number of lease renewal options (or more) | leaseRenewalOption | 1 | ||
Lease expense | $ 20.7 | $ 17.3 | $ 17.7 |
Short-term lease cost | $ 7.7 | $ 4.7 | $ 6 |
Leases (Lease Information) (Det
Leases (Lease Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Dec. 01, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Lease right-of-use assets | $ 25,545 | $ 27,693 | $ 31,200 |
Lease liabilities | $ 27,580 | $ 29,481 | $ 31,200 |
Weighted-average remaining lease term | 3 years 6 months | 3 years 9 months 18 days | |
Weighted-average discount rate (incremental borrowing rate) | 5% | 5.10% | |
Lease right-of-use assets obtained in exchange for new lease liabilities | $ 3,941 | $ 1,526 | |
Cash payments on lease liabilities | $ 11,169 | $ 11,613 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets | Other assets |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accrued Liabilities | Accrued Liabilities | Accounts payable and accrued expenses |
Homebuilding | |||
Lessee, Lease, Description [Line Items] | |||
Lease right-of-use assets | $ 25,469 | $ 27,508 | |
Lease liabilities | 27,494 | 29,279 | |
Financial service | |||
Lessee, Lease, Description [Line Items] | |||
Lease right-of-use assets | 100 | 200 | |
Lease liabilities | $ 100 | $ 200 |
Leases (Maturity) (Details)
Leases (Maturity) (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 | Dec. 01, 2019 |
Leases [Abstract] | |||
2023 | $ 10,589 | ||
2024 | 8,235 | ||
2025 | 6,159 | ||
2026 | 2,296 | ||
2027 | 1,761 | ||
Thereafter | 1,122 | ||
Total lease payments | 30,162 | ||
Less: Interest | (2,582) | ||
Operating lease liability | $ 27,580 | $ 29,481 | $ 31,200 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Federal | |||
Current | $ (194,400) | $ (44,300) | $ (12,100) |
Deferred | (2,900) | (47,200) | (36,200) |
Income tax expense | (197,300) | (91,500) | (48,300) |
State | |||
Current | (49,500) | (33,700) | (3,500) |
Deferred | (8,600) | (5,400) | (16,000) |
Income tax expense | (58,100) | (39,100) | (19,500) |
Total | |||
Current | (243,900) | (78,000) | (15,600) |
Deferred | (11,500) | (52,600) | (52,200) |
Income tax expense | $ (255,400) | $ (130,600) | $ (67,800) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | 10 Months Ended | 12 Months Ended | ||||||
Feb. 28, 2021 | May 31, 2020 | Feb. 29, 2020 | Dec. 31, 2020 | Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | Aug. 31, 2020 | Nov. 30, 2019 | |
Income Tax Contingency [Line Items] | |||||||||
Effective income tax rate (in percent) | 23.80% | 18.80% | 18.60% | ||||||
Income tax credits and adjustments | $ 22,600,000 | $ 49,500,000 | $ 18,700,000 | ||||||
Tax benefits from share-based compensation | 1,800,000 | 7,100,000 | 12,000,000 | ||||||
Nondeductible expense | 9,700,000 | 11,300,000 | 5,700,000 | ||||||
Income tax receivable due to AMT tax credit | $ 39,300,000 | $ 43,300,000 | |||||||
AMT credit refund | $ 43,300,000 | ||||||||
CARES Act employee retention credit | $ 4,300,000 | ||||||||
Deferred tax asset, net | (178,000,000) | (194,800,000) | |||||||
Valuation allowance | 17,100,000 | 17,400,000 | |||||||
Decrease in valuation allowance | $ 300,000 | ||||||||
Period for carry forward of tax benefits related to deferred tax assets | 20 years | ||||||||
Unrecognized tax benefits | $ 975,000 | 930,000 | 0 | $ 0 | |||||
Total accrued interest and penalties related to unrecognized income tax benefits (less than $.1 at November 30, 2022) | 100,000 | 0 | |||||||
State and Local Jurisdiction | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Operating loss carryforwards, expired | 100,000 | $ 200,000 | $ 400,000 | ||||||
State and Local Jurisdiction | Expiration between 2023 and 2042 | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Operating loss carryforwards | 60,700,000 | ||||||||
Tax Credit Carryforward, Expiring in 2038 | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Future income from continuing operations before income taxes | $ 670,000,000 | ||||||||
Maximum | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Refundable tax credit allowed per employee CARES act | $ 5,000 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets, Net) (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 |
Deferred tax liabilities: | ||
Capitalized expenses | $ 32,646 | $ 36,660 |
State taxes | 18,698 | 20,558 |
Depreciation and amortization | 8,628 | 3,926 |
Other | 416 | 1,555 |
Total | 60,388 | 62,699 |
Deferred tax assets: | ||
Warranty, legal and other accruals | 63,424 | 54,826 |
NOLs from 2006 through 2022 | 60,680 | 73,662 |
Employee benefits | 55,382 | 56,384 |
Inventory impairment and land option contract abandonment charges | 24,871 | 30,767 |
Capitalized expenses | 24,665 | 26,849 |
Partnerships and joint ventures | 7,386 | 8,265 |
Tax credits | 0 | 4,634 |
Other | 1,948 | 2,090 |
Total | 238,356 | 257,477 |
Valuation allowance | (17,100) | (17,400) |
Total | 221,256 | 240,077 |
Deferred tax assets, net | $ 160,868 | $ 177,378 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Expected Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Increase (decrease) resulting from | |||
Income tax expense computed at statutory rate | $ (225,121) | $ (146,023) | $ (76,449) |
Income tax benefit computed at statutory rate (percent) | (21.00%) | (21.00%) | (21.00%) |
Tax credits | $ 22,565 | $ 49,522 | $ 18,734 |
Tax credits (percent) | 2.10% | 7.10% | 5.10% |
Depreciation and amortization | $ 1,444 | $ 5,872 | $ 9,910 |
Depreciation and amortization (Percent) | 0.20% | 0.80% | 2.70% |
Valuation allowance for deferred tax assets | $ 300 | $ 600 | $ 1,200 |
Valuation allowance for deferred tax assets (percent) | 0% | 0.10% | 0.30% |
Non-deductible compensation | $ (7,905) | $ (9,241) | $ (4,812) |
Non-deductible compensation (percent) | (0.70%) | (1.30%) | (1.30%) |
State taxes, net of federal income tax benefit | $ (46,139) | $ (31,378) | $ (16,395) |
State taxes, net of federal income tax benefit (percent) | (4.30%) | (4.50%) | (4.40%) |
Other, net | $ (544) | $ 48 | $ 12 |
Other, net (percent) | (0.10%) | 0% | 0% |
Income tax expense | $ (255,400) | $ (130,600) | $ (67,800) |
Income tax expense (percent) | (23.80%) | (18.80%) | (18.60%) |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 930 | $ 0 | $ 0 |
Increase as a result of tax position taken in prior years | 45 | 930 | 0 |
Balance at end of year | $ 975 | $ 930 | $ 0 |
Notes Payable (Schedule of Note
Notes Payable (Schedule of Notes Payable) (Details) - USD ($) | Jun. 22, 2022 | Jun. 09, 2021 | Nov. 04, 2019 | Feb. 20, 2019 | Nov. 30, 2022 | Nov. 15, 2022 | Jul. 07, 2022 | Nov. 30, 2021 |
Debt Instrument [Line Items] | ||||||||
Notes payable | $ 1,838,511,000 | $ 1,685,027,000 | ||||||
Senior unsecured term loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | 360,000,000 | |||||||
Mortgages and land contracts due to land sellers and other loans (at interest rates of 7% at November 30, 2013 and 6% to 7% at November 30, 2012) | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes payable | $ 4,760,000 | 5,327,000 | ||||||
Stated interest rate percentage | 4.50% | |||||||
Senior Notes | 7.625% Senior notes due May 15, 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes payable | $ 0 | 350,788,000 | ||||||
Stated interest rate percentage | 7.625% | 7.625% | ||||||
Senior Notes | 7.50% Senior notes due September 15, 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes payable | $ 0 | 349,471,000 | ||||||
Stated interest rate percentage | 7.50% | 7.50% | ||||||
Senior Notes | 6.875% Senior notes due June 15, 2027 | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes payable | $ 297,595,000 | 297,161,000 | ||||||
Stated interest rate percentage | 6.875% | |||||||
Principal | $ 300,000,000 | |||||||
Effective interest rate | 7.10% | |||||||
Redemption price (percent) | 100% | |||||||
Senior Notes | 4.80% Senior notes due November 15, 2029 | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes payable | $ 297,230,000 | 296,905,000 | ||||||
Stated interest rate percentage | 4.80% | |||||||
Principal | $ 300,000,000 | |||||||
Effective interest rate | 5% | |||||||
Redemption price (percent) | 100% | |||||||
Senior Notes | 7.25% Senior notes due July 15, 2030 | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes payable | $ 345,663,000 | 0 | ||||||
Stated interest rate percentage | 7.25% | 7.25% | ||||||
Principal | $ 350,000,000 | |||||||
Effective interest rate | 7.50% | |||||||
Redemption price (percent) | 107.25% | |||||||
Senior Notes | 7.25% Senior notes due July 15, 2030 | Prior to July 25, 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price (percent) | 100% | |||||||
Redemption percentage of aggregate principal amount of notes issued (percent) | 40% | |||||||
Senior Notes | 4.00% Senior notes due June 15, 2031 | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes payable | $ 385,778,000 | 385,375,000 | ||||||
Stated interest rate percentage | 4% | 4% | ||||||
Principal | $ 390,000,000 | |||||||
Effective interest rate | 4.20% | |||||||
Redemption price (percent) | 100% | |||||||
Senior unsecured term loan | Senior unsecured term loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes payable | $ 357,485,000 | 0 | ||||||
Revolving Credit Facility | Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes payable | $ 150,000,000 | $ 0 |
Notes Payable - Narrative (Deta
Notes Payable - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||
Aug. 25, 2026 | Nov. 15, 2022 | Nov. 14, 2022 | Jul. 07, 2022 | Jun. 22, 2022 | Jun. 09, 2021 | Nov. 30, 2022 | Aug. 31, 2022 | Feb. 17, 2022 | Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | Sep. 15, 2021 | |
Debt Instrument [Line Items] | |||||||||||||
Debt issuance cost, premiums and discounts | $ 16,200,000 | $ 16,200,000 | $ 10,300,000 | ||||||||||
Borrowings under revolving credit facility | 1,685,000,000 | 340,000,000 | $ 0 | ||||||||||
Payment to purchase notes | $ 274,900,000 | ||||||||||||
Loss on early extinguishment of debt | 5,100,000 | 3,598,000 | 5,075,000 | $ 0 | |||||||||
Letters of credit outstanding | 43,000,000 | 43,000,000 | 43,200,000 | ||||||||||
Primarily inventories carrying value | 31,300,000 | 31,300,000 | |||||||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||||||||
Principal payments on senior notes, mortgages and land contracts due to land sellers and other loans due 2023 | 3,200,000 | 3,200,000 | |||||||||||
Principal payments on senior notes, mortgages and land contracts due to land sellers and other loans due 2024 | 1,000,000 | 1,000,000 | |||||||||||
Principal payments on senior notes, mortgages and land contracts due to land sellers and other loans due 2025 | 500,000 | 500,000 | |||||||||||
Principal payments on senior notes, mortgages and land contracts due to land sellers and other loans due 2026 | 360,000,000 | 360,000,000 | |||||||||||
Principal payments on senior notes, mortgages and land contracts due to land sellers and other loans due 2027 | 450,000,000 | 450,000,000 | |||||||||||
Principal payments on senior notes, mortgages and land contracts due to land sellers and other loans due thereafter | 1,040,000,000 | 1,040,000,000 | |||||||||||
Forecast | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, maturity date | Aug. 25, 2026 | ||||||||||||
Senior unsecured term loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal | $ 360,000,000 | $ 360,000,000 | |||||||||||
Borrowings under revolving credit facility | $ 360,000,000 | ||||||||||||
Senior Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Percentage of principal amount for purchase of notes if change in control | 101% | 101% | |||||||||||
Senior Notes | 7.625% Senior notes due May 15, 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayments of senior debt | $ 350,000,000 | ||||||||||||
Senior notes, rate | 7.625% | 7.625% | 7.625% | ||||||||||
Senior Notes | 7.25% Senior notes due July 15, 2030 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal | $ 350,000,000 | ||||||||||||
Senior notes, rate | 7.25% | 7.25% | 7.25% | ||||||||||
Redemption price (percent) | 107.25% | ||||||||||||
Conversion price premium | 100% | ||||||||||||
Proceeds from issuance of debt | $ 345,500,000 | ||||||||||||
Senior Notes | 7.50% Senior notes due September 15, 2022 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayments of senior debt | $ 350,000,000 | ||||||||||||
Senior notes, rate | 7.50% | 7.50% | 7.50% | ||||||||||
Payment to purchase notes | $ (353,600,000) | ||||||||||||
Loss on early extinguishment of debt | $ 3,600,000 | ||||||||||||
Senior Notes | 4.00% Senior notes due June 15, 2031 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal | $ 390,000,000 | ||||||||||||
Senior notes, rate | 4% | 4% | 4% | ||||||||||
Redemption price (percent) | 100% | ||||||||||||
Proceeds from issuance of debt | $ 385,200,000 | ||||||||||||
Senior Notes | Senior Notes Due 2021 at 7.00% | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal | $ 450,000,000 | ||||||||||||
Senior notes, rate | 7% | ||||||||||||
Debt instrument, repurchased face amount | $ 269,800,000 | ||||||||||||
Senior Notes | Senior Notes Due September 2021 at 7.00% | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Senior notes, rate | 7% | ||||||||||||
Debt instrument, repurchased face amount | $ 180,200,000 | ||||||||||||
Senior unsecured term loan | Senior unsecured term loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Weighted average interest rate (in percentage) | 5.60% | 5.60% | |||||||||||
Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Line of credit facility, current borrowing capacity | $ 1,090,000,000 | $ 1,090,000,000 | 800,000,000 | ||||||||||
Unsecured revolving credit facility, expiration date | Feb. 18, 2027 | Oct. 07, 2023 | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 1,290,000,000 | 1,290,000,000 | |||||||||||
Line of credit facility, amount outstanding | 150,000,000 | 150,000,000 | |||||||||||
Line of credit facility, remaining borrowing capacity | 933,300,000 | $ 933,300,000 | |||||||||||
Revolving Credit Facility | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Line of credit facility, unused capacity, commitment fee percentage | 0.15% | ||||||||||||
Revolving Credit Facility | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Line of credit facility, unused capacity, commitment fee percentage | 0.35% | ||||||||||||
Letter of Credit | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Line of credit facility, current borrowing capacity | 250,000,000 | $ 250,000,000 | |||||||||||
Line of credit facility, amount outstanding | 6,700,000 | 6,700,000 | |||||||||||
Line of credit facility, remaining borrowing capacity | $ 243,300,000 | $ 243,300,000 | |||||||||||
Weighted average interest rate (in percentage) | 5.10% | 5.10% | |||||||||||
LOC Facilities | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Line of credit facility, current borrowing capacity | $ 75,000,000 | $ 75,000,000 | |||||||||||
Letters of credit outstanding | $ 36,400,000 | $ 36,400,000 | $ 34,600,000 |
Fair Value Disclosures (Assets
Fair Value Disclosures (Assets Measured at Fair Value on a Nonrecurring Basis) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Inventory Impairment Charges | $ (24,100) | $ (9,900) | $ (22,700) | |
Level 3 | Fair Value, Measurements, Nonrecurring | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Pre-Impairment Value | 65,372 | 27,923 | ||
Inventory Impairment Charges | (24,077) | (9,903) | ||
Fair Value | [1] | $ 41,295 | $ 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 (Carryin
Fair Value Disclosures (Carrying Values and Estimated Fair Values of Financial Instruments) (Details) - Senior Notes - Level 2 - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 | |
Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior notes | [1] | $ 1,326,266 | $ 1,679,700 |
Estimated Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior notes | $ 1,205,875 | $ 1,796,500 | |
[1]The carrying value for the senior notes, as presented, includes 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 (Changes in Warranty Liability) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | ||
Changes in the Company's warranty liability | ||||
Balance at beginning of year | $ 96,153 | $ 91,646 | $ 88,839 | |
Warranties issued | 39,476 | 34,627 | 29,505 | |
Payments | (33,739) | (26,120) | (23,098) | |
Adjustments | 0 | (4,000) | (3,600) | |
Balance at end of year | 101,890 | 96,153 | 91,646 | |
Movement In Self Insurance Reserve [Roll Forward] | ||||
Balance at beginning of year | 189,131 | 194,180 | 177,765 | |
Self-insurance provided | 21,926 | 19,665 | 15,399 | |
Payments | (21,984) | (29,369) | (4,375) | |
Balance at end of year | 175,977 | 189,131 | 194,180 | |
Increase (decrease) in self insurance reserve | 7,000 | 6,800 | (4,000) | |
Self Insurance | ||||
Movement In Self Insurance Reserve [Roll Forward] | ||||
Adjustments | [1] | $ (13,096) | $ 4,655 | $ 5,391 |
[1]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; an adjustment to increase our previously recorded liability by $7.0 million in 2022 and $6.8 million in 2021; and an adjustment to reduce our previously recorded liability by $4.0 million in 2020. |
Commitments and Contingencies_3
Commitments and Contingencies (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Nov. 30, 2022 USD ($) claim_filed home | Nov. 30, 2021 USD ($) | |
Loss Contingencies [Line Items] | ||
Structural warranty provided by company (in years) | 10 years | |
Warranty for other components of home (in years) | 1 year | |
Performance bonds | $ 1,270,000 | $ 1,110,000 |
Letters of credit outstanding | 43,000 | 43,200 |
Cash Deposits | 51,850 | 74,509 |
Aggregate Purchase Price | $ 1,164,932 | 1,859,851 |
Minimum | ||
Loss Contingencies [Line Items] | ||
Warranty on electrical and other building systems (in years) | 2 years | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Warranty on electrical and other building systems (in years) | 5 years | |
LOC Facilities | ||
Loss Contingencies [Line Items] | ||
Letters of credit outstanding | $ 36,400 | 34,600 |
Expiration period | 1 year | |
Damages from Product Defects | ||
Loss Contingencies [Line Items] | ||
Minimum number of affected homes for construction defect claims | home | 2 | |
Self Insurance | ||
Loss Contingencies [Line Items] | ||
Reclassification of warranty recoveries to receivables | $ 32,700 | $ 57,800 |
Chapter 558 of the Florida Statutes | ||
Loss Contingencies [Line Items] | ||
Number of new claims filed | claim_filed | 531 | |
Warranty Obligations | ||
Loss Contingencies [Line Items] | ||
Structural warranty provided by company (in years) | 10 years |
Legal Matters (Details)
Legal Matters (Details) | 12 Months Ended |
Nov. 30, 2022 | |
Loss Contingency, Information about Litigation Matters [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) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Nov. 30, 2022 USD ($) preferredSharePurchaseRight $ / shares shares | Aug. 31, 2022 $ / shares | May 31, 2022 $ / shares | Feb. 28, 2022 $ / shares | Nov. 30, 2021 $ / shares | Aug. 31, 2021 $ / shares | May 31, 2021 $ / shares | Feb. 28, 2021 $ / shares | Nov. 30, 2020 $ / shares | Aug. 31, 2020 $ / shares | May 31, 2020 $ / shares | Feb. 29, 2020 $ / shares | Nov. 30, 2022 USD ($) preferredSharePurchaseRight $ / shares shares | Nov. 30, 2021 USD ($) shares | Nov. 30, 2020 USD ($) shares | Apr. 07, 2022 USD ($) shares | Jul. 08, 2021 shares | Jul. 07, 2021 shares | Jul. 17, 2014 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Dividend distribution, number of preferred share purchase rights for each outstanding common stock share | preferredSharePurchaseRight | 1 | 1 | |||||||||||||||||
Shares included in each purchase right in the 2021 Rights Agreement | 0.01 | 0.01 | |||||||||||||||||
Purchase price for right holders (per right) | $ / shares | $ 85 | $ 85 | |||||||||||||||||
Calendar days after a public announcement during which rights to be exercised | 10 days | ||||||||||||||||||
Business days after the commencement of a tender or exchange offer during which rights to be exercised | 10 days | ||||||||||||||||||
Beneficially ownership in company's outstanding common stock to be held by person or group to exercise rights | 4.90% | ||||||||||||||||||
Number of common shares issued for each purchase right | 1 | 1 | |||||||||||||||||
Price at which company may redeem all of the then outstanding rights (per right) | $ / shares | $ 0.001 | $ 0.001 | |||||||||||||||||
Cash dividends paid per common share (in dollars per share) | $ / shares | 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.09 | $ 0.09 | $ 0.09 | |||||||
Cash dividends declared per common share (in dollars per share) | $ / shares | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.09 | $ 0.09 | $ 0.09 | |||||||
Value of treasury stock acquired | $ | $ 15,902 | $ 12,337 | $ 9,503 | ||||||||||||||||
Retirement of treasury stock, shares | 23,487,966 | ||||||||||||||||||
Director Plan SARs | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Stock repurchase program, number of shares authorized to be repurchased (in shares) | 680,000 | ||||||||||||||||||
Treasury Stock | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Stock repurchased during period, (in shares) | 4,668,600 | ||||||||||||||||||
Stock repurchased during period, value | $ | $ 188,200 | ||||||||||||||||||
Value of treasury stock acquired | $ | 15,902 | 12,337 | $ 9,503 | ||||||||||||||||
Retirement of treasury stock, shares | (23,488,000) | ||||||||||||||||||
July 2021 Stock Repurchase Program | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Stock repurchase program, number of shares authorized to be repurchased (in shares) | 5,000,000 | ||||||||||||||||||
Remaining authorized number of shares available for repurchases | 331,400 | ||||||||||||||||||
May 2018 Stock Repurchase Program | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Remaining authorized number of shares available for repurchases | 2,193,947 | ||||||||||||||||||
April 2022 Stock Repurchase Program | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Stock repurchase program, remaining authorized repurchase amount | $ | $ 150,000 | $ 150,000 | $ 300,000 | ||||||||||||||||
April 2022 Stock Repurchase Program | Treasury Stock | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Stock repurchased during period, (in shares) | 4,927,499 | ||||||||||||||||||
Stock repurchased during period, value | $ | $ 150,000 | ||||||||||||||||||
Not Part of a Share Repurchase Program | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Value of treasury stock acquired | $ | $ 15,900 | $ 12,300 | $ 9,500 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Changes in the Balances of each Component of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | $ 3,019,475 | $ 2,665,769 | $ 2,383,122 | |
Amounts reclassified from accumulated other comprehensive loss | [1] | 1,090 | 1,661 | 1,388 |
Income tax expense related to items of other comprehensive income | (5,009) | (1,168) | 1,897 | |
Other comprehensive income, net of tax | 13,544 | 3,157 | (5,127) | |
Ending balance | 3,660,795 | 3,019,475 | 2,665,769 | |
Accumulated Define Benefit Plans Adjustment Member | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (19,119) | (22,276) | ||
Other comprehensive income before reclassifications | 17,463 | 2,664 | ||
Amounts reclassified from accumulated other comprehensive loss | 1,090 | 1,661 | ||
Income tax expense related to items of other comprehensive income | (5,009) | (1,168) | ||
Other comprehensive income, net of tax | 13,544 | 3,157 | ||
Ending balance | $ (5,575) | $ (19,119) | $ (22,276) | |
[1]The accumulated other comprehensive loss components are included in the computation of net periodic benefit costs as further discussed in Note 22 – Postretirement Benefits. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Amounts Reclassified from Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | ||
Equity [Abstract] | ||||
Amortization of net actuarial loss | $ 1,090 | $ 1,575 | $ 963 | |
Amortization of prior service cost | 0 | 86 | 425 | |
Total reclassifications | [1] | $ 1,090 | $ 1,661 | $ 1,388 |
[1]The accumulated other comprehensive loss components are included in the computation of net periodic benefit costs as further discussed in Note 22 – Postretirement Benefits. |
Employee Benefit and Stock Pl_3
Employee Benefit and Stock Plans (Narrative) (Details) | 12 Months Ended | ||||||
Nov. 14, 2022 $ / shares | Oct. 07, 2021 $ / shares | Oct. 08, 2020 $ / shares | Nov. 30, 2022 USD ($) plan $ / shares shares | Nov. 30, 2021 USD ($) $ / shares shares | Nov. 30, 2020 USD ($) $ / shares shares | Apr. 07, 2016 | |
Employee Benefit and Stock Plans (Textual) [Abstract] | |||||||
Number of active equity incentive plans | plan | 1 | ||||||
Granted (in shares) | 0 | 0 | 0 | ||||
Exercises in period, total intrinsic value | $ | $ 22,100,000 | $ 48,200,000 | |||||
Intrinsic value of stock options outstanding | $ | $ 26,500,000 | 40,900,000 | 48,900,000 | ||||
Intrinsic value of stock options exercisable | $ | $ 26,500,000 | $ 40,900,000 | $ 48,900,000 | ||||
Shares of common stock held in trust (in shares) | 6,705,247 | 6,705,247 | |||||
Stock options | |||||||
Employee Benefit and Stock Plans (Textual) [Abstract] | |||||||
Total unrecognized stock-based compensation expense related to unvested stock option awards | $ | $ 0 | ||||||
Restricted stock | |||||||
Employee Benefit and Stock Plans (Textual) [Abstract] | |||||||
Total unrecognized stock-based compensation expense related to unvested stock option awards | $ | $ 15,800,000 | ||||||
Minimum period of restriction imposed on share grant lapse | 3 years | ||||||
Unrecognized share-based compensation cost weighted average period | 3 years | ||||||
Granted, weighted average per share grant date fair value (in dollars per share) | $ / shares | $ 27.49 | $ 40.55 | $ 35.57 | ||||
Granted (in shares) | 347,131 | 286,709 | 265,187 | ||||
PSUs | |||||||
Employee Benefit and Stock Plans (Textual) [Abstract] | |||||||
Total unrecognized stock-based compensation expense related to unvested stock option awards | $ | $ 37,700,000 | ||||||
Minimum period of restriction imposed on share grant lapse | 3 years | ||||||
Unrecognized share-based compensation cost weighted average period | 3 years | ||||||
Granted, weighted average per share grant date fair value (in dollars per share) | $ / shares | $ 30.12 | $ 39.31 | $ 40.06 | $ 33.34 | $ 39.67 | $ 40.05 | |
Granted (in shares) | 650,077 | 465,064 | 397,452 | ||||
Director Plan SARs | |||||||
Employee Benefit and Stock Plans (Textual) [Abstract] | |||||||
Non option outstanding number (in shares) | 0 | 70,849 | 155,569 | ||||
Non-Employee Director Deferred Common Stock | |||||||
Employee Benefit and Stock Plans (Textual) [Abstract] | |||||||
Non option outstanding number (in shares) | 409,648 | 469,171 | 548,952 | ||||
Minimum | PSUs | |||||||
Employee Benefit and Stock Plans (Textual) [Abstract] | |||||||
Grant award percentage | 0% | ||||||
Maximum | PSUs | |||||||
Employee Benefit and Stock Plans (Textual) [Abstract] | |||||||
Grant award percentage | 200% | ||||||
Savings Plan | |||||||
Employee Benefit and Stock Plans (Textual) [Abstract] | |||||||
Aggregate cost related to saving plan | $ | $ 8,200,000 | $ 7,200,000 | $ 6,500,000 | ||||
Net assets invested in funds consisting common stock | 3% | 4% | 4% | ||||
2014 Equity Incentive Plan | |||||||
Employee Benefit and Stock Plans (Textual) [Abstract] | |||||||
Share based payments award terms of award | 10 years | ||||||
PSU 2017 | PSUs | |||||||
Employee Benefit and Stock Plans (Textual) [Abstract] | |||||||
Granted (in shares) | 119,733 | ||||||
PSU 2016 | PSUs | |||||||
Employee Benefit and Stock Plans (Textual) [Abstract] | |||||||
Granted (in shares) | 108,511 | ||||||
Director Plan SARs | |||||||
Employee Benefit and Stock Plans (Textual) [Abstract] | |||||||
Share based payments award terms of award | 15 years | ||||||
PSU 2018 | PSUs | |||||||
Employee Benefit and Stock Plans (Textual) [Abstract] | |||||||
Granted (in shares) | 265,782 | ||||||
Equity Incentive Plan | |||||||
Employee Benefit and Stock Plans (Textual) [Abstract] | |||||||
Number of shares authorized for issuance of stock based awards to employees | 12,300,000 | ||||||
Grant of stock option, Reduce the plan share capacity per share | 1 | ||||||
Grant of restricted stock, reduce the plan share capacity per share | 1.78 |
Employee Benefit and Stock Pl_4
Employee Benefit and Stock Plans (Stock Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense related to stock option grants | $ 29,464 | $ 28,904 | $ 21,531 |
Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense related to stock option grants | 8,743 | 7,139 | 6,993 |
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense related to stock option grants | 18,757 | 19,512 | 13,069 |
Director awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense related to stock option grants | $ 1,964 | $ 2,253 | $ 1,469 |
Employee Benefit and Stock Pl_5
Employee Benefit and Stock Plans (Stock Option Transactions) (Details) - $ / shares | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Stock Options | |||
Options outstanding at beginning of year (in shares) | 1,674,393 | 2,462,714 | 4,163,481 |
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | 0 | (788,321) | (1,694,767) |
Cancelled (in shares) | 0 | 0 | (6,000) |
Options outstanding at end of year (in shares) | 1,674,393 | 1,674,393 | 2,462,714 |
Options exercisable at end of year (in shares) | 1,674,393 | 1,674,393 | 2,462,714 |
Options available for grant at end of year (in shares) | 3,260,585 | 4,096,427 | 4,888,526 |
Weighted Average Exercise Price | |||
Options outstanding at beginning of year, Weighted Average Exercise Price in dollars per share (in dollars per share) | $ 15.56 | $ 15.32 | $ 13 |
Granted, Weighted Average Exercise Price (in dollars per share) | 0 | 0 | 0 |
Exercised, Weighted Average Exercise Price (in dollars per share) | 0 | 14.83 | 9.52 |
Cancelled, Weighted Average Exercise Price (in dollars per share) | 0 | 0 | 45.16 |
Options outstanding at end of year, Weighted Average Exercise Price in dollars per share (in dollars per share) | 15.56 | 15.56 | 15.32 |
Options exercisable at end of period, Weighted Average Exercise Price (in dollars per share) | $ 15.56 | $ 15.56 | $ 15.32 |
Employee Benefit and Stock Pl_6
Employee Benefit and Stock Plans (Stock Options Outstanding and Exercisable) (Details) | 12 Months Ended |
Nov. 30, 2022 $ / shares shares | |
Stock options outstanding and stock options exercisable | |
Range of exercise price, minimum (in dollars per share) | $ 6.32 |
Range of exercise price, maximum (in dollars per share) | $ 16.63 |
Options outstanding, options (in shares) | shares | 1,674,393 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 15.56 |
Options outstanding, weighted average remaining contractual life | 2 years 10 months 24 days |
Options exercisable, options (in shares) | shares | 1,674,393 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 15.56 |
Options exercisable, weighted average remaining contractual life (in years) | 2 years 10 months 24 days |
$6.32 to $14.62 | |
Stock options outstanding and stock options exercisable | |
Range of exercise price, minimum (in dollars per share) | $ 6.32 |
Range of exercise price, maximum (in dollars per share) | $ 14.62 |
Options outstanding, options (in shares) | shares | 201,517 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 14.62 |
Options outstanding, weighted average remaining contractual life | 1 year 10 months 24 days |
Options exercisable, options (in shares) | shares | 201,517 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 14.62 |
$14.63 to $14.92 | |
Stock options outstanding and stock options exercisable | |
Range of exercise price, minimum (in dollars per share) | 14.63 |
Range of exercise price, maximum (in dollars per share) | $ 14.92 |
Options outstanding, options (in shares) | shares | 663,000 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 14.92 |
Options outstanding, weighted average remaining contractual life | 2 years 10 months 24 days |
Options exercisable, options (in shares) | shares | 663,000 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 14.92 |
$14.93 to $16.21 | |
Stock options outstanding and stock options exercisable | |
Range of exercise price, minimum (in dollars per share) | 14.93 |
Range of exercise price, maximum (in dollars per share) | $ 16.21 |
Options outstanding, options (in shares) | shares | 611,876 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 16.21 |
Options outstanding, weighted average remaining contractual life | 3 years 9 months 18 days |
Options exercisable, options (in shares) | shares | 611,876 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 16.21 |
$16.22 to $16.63 | |
Stock options outstanding and stock options exercisable | |
Range of exercise price, minimum (in dollars per share) | 16.22 |
Range of exercise price, maximum (in dollars per share) | $ 16.63 |
Options outstanding, options (in shares) | shares | 198,000 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 16.63 |
Options outstanding, weighted average remaining contractual life | 10 months 24 days |
Options exercisable, options (in shares) | shares | 198,000 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 16.63 |
Employee Benefit and Stock Pl_7
Employee Benefit and Stock Plans (Restricted Stock and PSU Transactions) (Details) - $ / shares | 12 Months Ended | ||||||
Nov. 14, 2022 | Oct. 07, 2021 | Oct. 08, 2020 | Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | |
Restricted stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||
Outstanding at beginning of year (in shares) | 431,191 | 423,215 | 500,066 | ||||
Weighted average per share grant date fair value (in dollars per share) | $ 19.50 | $ 19.22 | $ 19.56 | $ 20.66 | |||
Granted (in shares) | 347,131 | 286,709 | 265,187 | ||||
Granted, weighted average per share grant date fair value (in dollars per share) | $ 27.49 | $ 40.55 | $ 35.57 | ||||
Vested (in shares) | (192,840) | (265,131) | (304,095) | ||||
Vested, weighted average per share grant date fair value (in dollars per share) | $ 29.09 | $ 42.04 | $ 34.25 | ||||
Cancelled (in shares) | (41,596) | (13,602) | (37,943) | ||||
Cancelled, weighted average per share grant date fair value (in dollars per share) | $ 38.58 | $ 34.43 | $ 28.18 | ||||
Outstanding at end of year (in shares) | 543,886 | 431,191 | 423,215 | ||||
PSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||
Outstanding at beginning of year (in shares) | 1,392,864 | 1,346,870 | 1,262,664 | ||||
Weighted average per share grant date fair value (in dollars per share) | $ 19.70 | $ 23.48 | $ 23.25 | $ 22.13 | |||
Granted (in shares) | 650,077 | 465,064 | 397,452 | ||||
Granted, weighted average per share grant date fair value (in dollars per share) | $ 30.12 | $ 39.31 | $ 40.06 | $ 33.34 | $ 39.67 | $ 40.05 | |
Vested (in shares) | (674,677) | (419,070) | (313,246) | ||||
Vested, weighted average per share grant date fair value (in dollars per share) | $ 38 | $ 40.70 | $ 40.04 | ||||
Cancelled (in shares) | (95,107) | 0 | 0 | ||||
Cancelled, weighted average per share grant date fair value (in dollars per share) | $ 38.55 | $ 0 | $ 0 | ||||
Outstanding at end of year (in shares) | 1,273,157 | 1,392,864 | 1,346,870 |
Postretirement Benefits (Narrat
Postretirement Benefits (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Liabilities related to postretirement benefit plan | $ 61.4 | $ 76.3 | |
Discounted rate for benefit plan | 4.80% | 2.30% | |
2023 | $ 3 | ||
2024 | 3.1 | ||
2025 | 3.5 | ||
2026 | 4.6 | ||
2027 | 4.6 | ||
2028-2032 | $ 24.4 | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Amortization of prior service cost | Amortization of prior service cost | Amortization of prior service cost |
Supplemental Nonqualified Unfunded Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash surrender value of insurance contracts | $ 35.3 | $ 40.5 | |
Recognized investment gains (losses) on the cash surrender value of the Retirement Plan life insurance contracts | 3.1 | 1.1 | $ (0.7) |
Benefits paid | 2 | 1.9 | 1.9 |
Unfunded Death Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash surrender value of insurance contracts | 16.8 | 18.5 | |
Recognized investment gains (losses) on the cash surrender value of the Retirement Plan life insurance contracts | 1.5 | $ 0.3 | $ (0.3) |
Benefits paid | $ 0.7 |
Postretirement Benefits (Net Pe
Postretirement Benefits (Net Periodic Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Retirement Benefits [Abstract] | |||
Interest cost | $ 1,853 | $ 1,593 | $ 1,950 |
Amortization of prior service cost | 0 | 85 | 425 |
Service cost | 1,132 | 1,152 | 1,077 |
Amortization of net actuarial loss | 998 | 1,443 | 912 |
Total | $ 3,983 | $ 4,273 | $ 4,364 |
Supplemental Disclosure to Co_3
Supplemental Disclosure to Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Summary of cash and cash equivalents at the end of the year: | |||
Cash and cash equivalents | $ 330,198 | $ 292,136 | $ 682,529 |
Interest paid, net of amounts capitalized | (5,435) | 7,087 | 866 |
Income taxes paid | 248,976 | 68,274 | 17,253 |
Income taxes refunded | 452 | 39,450 | 44,336 |
Supplemental disclosure of non-cash activities: | |||
Increase (decrease) in consolidated inventories not owned | (21,433) | 7,071 | 7,254 |
Inventories acquired through seller financing | 0 | 2,910 | 21,712 |
Reclassification of federal tax refund from deferred tax assets to receivables | 0 | 0 | 82,617 |
Increase in operating lease right-of-use assets and lease liabilities due to adoption of ASC 842 | 31,199 | ||
Inspirada Builders LLC | |||
Supplemental disclosure of non-cash activities: | |||
Increase in inventories due to distributions of land and land development from an unconsolidated joint venture | 13,524 | 9,766 | 9,350 |
Homebuilding | |||
Summary of cash and cash equivalents at the end of the year: | |||
Cash and cash equivalents | 328,517 | 290,764 | 681,190 |
Financial service | |||
Summary of cash and cash equivalents at the end of the year: | |||
Cash and cash equivalents | $ 1,681 | $ 1,372 | $ 1,339 |
Uncategorized Items - kbh-20221
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-02 [Member] |