Cover
Cover - shares | 3 Months Ended | |
Feb. 28, 2023 | Nov. 30, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Feb. 28, 2023 | |
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 Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock Shares Outstanding | 82,491,192 | |
Grantor Stock Ownership Trust (in shares) | 6,705,247 | 6,705,247 |
Entity Central Index Key | 0000795266 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --11-30 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
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 $1.00 per share) | |
Trading Symbol | KBH | |
Security Exchange Name | NYSE | |
Rights | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Rights to Purchase Series A Participating Cumulative Preferred Stock | |
Security Exchange Name | NYSE | |
No Trading Symbol Flag | true |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Revenues | $ 1,384,314 | $ 1,398,789 |
Equity in income (loss) of unconsolidated joint ventures | 825 | 5,171 |
Total pretax income | 162,200 | 178,057 |
Income tax expense | (36,700) | (43,800) |
Net income | $ 125,500 | $ 134,257 |
Earnings per share: | ||
Basic (in dollars per share) | $ 1.49 | $ 1.51 |
Diluted (in dollars per share) | $ 1.45 | $ 1.47 |
Weighted average shares outstanding: | ||
Basic (in shares) | 83,468 | 88,285 |
Diluted (in shares) | 85,995 | 91,067 |
Homebuilding | ||
Revenues | $ 1,378,537 | $ 1,394,154 |
Construction and land costs | (1,082,821) | (1,082,112) |
Selling, general and administrative expenses | (139,227) | (142,480) |
Operating income | 156,489 | 169,562 |
Interest income | 467 | 36 |
Equity in income (loss) of unconsolidated joint ventures | (757) | 23 |
Total pretax income | 156,199 | 169,621 |
Financial services | ||
Revenues | 5,777 | 4,635 |
Selling, general and administrative expenses | (1,358) | (1,347) |
Operating income | 4,419 | 3,288 |
Equity in income (loss) of unconsolidated joint ventures | 1,582 | 5,148 |
Total pretax income | $ 6,001 | $ 8,436 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 28, 2023 | Nov. 30, 2022 | |
Assets | |||
Inventories | $ 5,445,153 | $ 5,543,176 | |
Total assets | 6,514,101 | 6,651,930 | |
Liabilities and stockholders’ equity | |||
Accrued expenses and other liabilities | 678,611 | 736,971 | |
Notes payable | 1,788,850 | 1,838,511 | |
Stockholders’ equity: | |||
Common stock — 100,783,133 and 100,711,153 shares issued at February 28, 2023 and November 30, 2022, respectively | 100,783 | 100,711 | |
Paid-in capital | 819,904 | 836,260 | |
Retained earnings | 3,256,602 | 3,143,578 | |
Accumulated other comprehensive loss | (5,575) | (5,575) | |
Grantor stock ownership trust, at cost: 6,705,247 shares at February 28, 2023 and November 30, 2022 | (72,718) | (72,718) | |
Treasury stock, at cost: 11,586,694 and 10,015,507 at February 28, 2023 and November 30, 2022, respectively | (403,533) | (341,461) | |
Total stockholders’ equity | 3,695,463 | 3,660,795 | |
Total liabilities and stockholders’ equity | 6,514,101 | 6,651,930 | |
Homebuilding | |||
Assets | |||
Cash and cash equivalents | 260,127 | 328,517 | |
Receivables | 348,567 | 322,767 | |
Inventories | 5,445,153 | 5,543,176 | |
Investments in unconsolidated joint ventures | 51,188 | 46,785 | |
Property and equipment, net | 89,359 | 89,234 | |
Deferred tax assets, net | 155,868 | 160,868 | |
Other assets | 102,902 | 101,051 | |
Total assets | 6,453,164 | 6,592,398 | |
Liabilities and stockholders’ equity | |||
Accounts payable | 349,800 | 412,525 | |
Accrued expenses and other liabilities | 678,611 | 736,971 | |
Notes payable | 1,788,850 | 1,838,511 | |
Total Homebuilding | 2,817,261 | 2,988,007 | |
Financial services | |||
Assets | |||
Cash and cash equivalents | 700 | 1,681 | |
Receivables | 2,978 | 3,475 | |
Investments in unconsolidated joint ventures | 28,249 | 26,678 | |
Other assets | [1] | 29,010 | 27,698 |
Total assets | 60,937 | 59,532 | |
Liabilities and stockholders’ equity | |||
Financial services | $ 1,377 | $ 3,128 | |
[1]Other assets at February 28, 2023 and November 30, 2022 included $28.9 million and $27.6 million, respectively, of contract assets for estimated future renewal commissions. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Feb. 28, 2023 | Nov. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, shares, issued (in shares) | 100,783,133 | 100,711,153 |
Grantor stock ownership trust (in shares) | 6,705,247 | 6,705,247 |
Treasury stock (in shares) | 11,586,694 | 10,015,507 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 125,500 | $ 134,257 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Equity in income of unconsolidated joint ventures | (825) | (5,171) |
Distributions of earnings from unconsolidated joint ventures | 11 | 9,295 |
Amortization of debt issuance costs and premiums | 835 | 549 |
Depreciation and amortization | 8,712 | 7,627 |
Deferred income taxes | 5,000 | 4,400 |
Stock-based compensation | 5,867 | 6,867 |
Inventory impairments and land option contract abandonments | 5,289 | 175 |
Changes in assets and liabilities: | ||
Receivables | (25,303) | (8,569) |
Inventories | 101,293 | (405,851) |
Accounts payable, accrued expenses and other liabilities | (131,671) | 2,069 |
Other, net | (791) | 3,317 |
Net cash provided by (used in) operating activities | 93,917 | (251,035) |
Cash flows from investing activities: | ||
Contributions to unconsolidated joint ventures | (13,223) | (8,568) |
Return of investments in unconsolidated joint ventures | 5,100 | 1,255 |
Purchases of property and equipment, net | (8,838) | (10,563) |
Net cash used in investing activities | (16,961) | (17,876) |
Cash flows from financing activities: | ||
Borrowings under revolving credit facility | 170,000 | 675,000 |
Repayments under revolving credit facility | (220,000) | (425,000) |
Issuance costs for unsecured revolving credit facility | 0 | (3,805) |
Payments on mortgages and land contracts due to land sellers and other loans | (237) | (400) |
Issuance of common stock under employee stock plans | 1,134 | 0 |
Stock repurchases | (75,000) | 0 |
Tax payments associated with stock-based compensation awards | (9,748) | (12,153) |
Payments of cash dividends | (12,476) | (14,130) |
Net cash provided by (used in) financing activities | (146,327) | 219,512 |
Net decrease in cash and cash equivalents | (69,371) | (49,399) |
Cash and cash equivalents at beginning of period | 330,198 | 292,136 |
Cash and cash equivalents at end of period | $ 260,827 | $ 242,737 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Feb. 28, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of Presentation. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended November 30, 2022, which are contained in our Annual Report on Form 10-K for that period. The consolidated balance sheet at November 30, 2022 has been taken from the audited consolidated financial statements as of that date. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) considered necessary for the fair presentation of our results for the interim periods presented. The results of our consolidated operations for the three months ended February 28, 2023 are not necessarily indicative of the results to be expected for the full year due to seasonal variations in operating results and other factors. Unless the context indicates otherwise, the terms “we,” “our,” and “us” used in this report refer to KB Home, a Delaware corporation, and its subsidiaries. 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 $51.3 million at February 28, 2023 and $15.8 million at November 30, 2022. At February 28, 2023 and November 30, 2022, the majority of our cash equivalents was invested in interest-bearing bank deposit accounts. |
Segment Information
Segment Information | 3 Months Ended |
Feb. 28, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We have identified five operating reporting segments, comprised of four homebuilding reporting segments and one financial services reporting segment. As of February 28, 2023, our homebuilding reporting segments conducted ongoing operations in the following states: West Coast: California, Idaho and Washington Southwest: Arizona and Nevada Central: Colorado and Texas Southeast: Florida and North Carolina Our homebuilding reporting segments are engaged in the acquisition and development of land primarily for residential purposes and offer a wide variety of homes that are designed to appeal to first-time, first move-up and active adult homebuyers. Our homebuilding operations generate most of their revenues from the delivery of completed homes to homebuyers. They also earn revenues from the sale of land. Our financial services reporting segment offers property and casualty insurance and, in certain instances, earthquake, flood and personal property insurance to our homebuyers in the same markets as our homebuilding reporting segments, and provides title services in the majority of our markets located within our Southwest, Central and Southeast homebuilding reporting segments. Our financial services reporting segment earns revenues primarily from insurance commissions and from the provision of title services. We offer mortgage banking services, including residential consumer mortgage loan (“mortgage loan”) originations, to our homebuyers indirectly through KBHS Home Loans, LLC (“KBHS”), our unconsolidated joint venture with GR Alliance Ventures, LLC (“GR Alliance”). We and GR Alliance each have a 50.0% ownership interest, with GR Alliance providing management oversight of KBHS’ operations. Our reporting segments follow the same accounting policies used for our consolidated financial statements. The results of each reporting segment are not necessarily indicative of the results that would have occurred had the segment been an independent, stand-alone entity during the periods presented, nor are they indicative of the results to be expected in future periods. The following tables present financial information relating to our homebuilding reporting segments (in thousands): Three Months Ended February 28, 2023 2022 Revenues: West Coast $ 540,019 $ 658,874 Southwest 239,587 209,767 Central 389,951 355,322 Southeast 208,980 170,191 Total $ 1,378,537 $ 1,394,154 Pretax income (loss): West Coast $ 59,550 $ 110,034 Southwest 44,031 35,905 Central 58,833 38,116 Southeast 23,525 20,266 Corporate and other (29,740) (34,700) Total $ 156,199 $ 169,621 Inventory impairment and land option contract abandonment charges: West Coast $ 869 $ — Southwest — 109 Central 951 66 Southeast 3,469 — Total $ 5,289 $ 175 February 28, November 30, Assets: West Coast $ 2,548,876 $ 2,631,598 Southwest 1,063,712 1,074,912 Central 1,476,402 1,493,486 Southeast 927,498 929,208 Corporate and other 436,676 463,194 Total $ 6,453,164 $ 6,592,398 |
Financial Services
Financial Services | 3 Months Ended |
Feb. 28, 2023 | |
Segment Reporting [Abstract] | |
Financial Services | Financial Services The following tables present financial information relating to our financial services reporting segment (in thousands): Three Months Ended February 28, 2023 2022 Revenues Insurance commissions $ 3,374 $ 2,518 Title services 2,403 2,101 Other — 16 Total 5,777 4,635 Expenses General and administrative (1,358) (1,347) Operating income 4,419 3,288 Equity in income of unconsolidated joint venture 1,582 5,148 Pretax income $ 6,001 $ 8,436 February 28, November 30, Assets Cash and cash equivalents $ 700 $ 1,681 Receivables 2,978 3,475 Investments in unconsolidated joint venture 28,249 26,678 Other assets (a) 29,010 27,698 Total assets $ 60,937 $ 59,532 Liabilities Accounts payable and accrued expenses $ 1,377 $ 3,128 Total liabilities $ 1,377 $ 3,128 (a) Other assets at February 28, 2023 and November 30, 2022 included $28.9 million and $27.6 million, respectively, of contract assets for estimated future renewal commissions. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Feb. 28, 2023 | |
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): Three Months Ended February 28, 2023 2022 Numerator: Net income $ 125,500 $ 134,257 Less: Distributed earnings allocated to nonvested restricted stock (87) (65) Less: Undistributed earnings allocated to nonvested restricted stock (777) (584) Numerator for basic earnings per share 124,636 133,608 Effect of dilutive securities: Add: Undistributed earnings allocated to nonvested restricted stock 777 584 Less: Undistributed earnings reallocated to nonvested restricted stock (754) (566) Numerator for diluted earnings per share $ 124,659 $ 133,626 Three Months Ended February 28, 2023 2022 Denominator: Weighted average shares outstanding — basic 83,468 88,285 Effect of dilutive securities: Share-based payments 2,527 2,782 Weighted average shares outstanding — diluted 85,995 91,067 Basic earnings per share $ 1.49 $ 1.51 Diluted earnings per share $ 1.45 $ 1.47 We compute earnings per share using the two-class method, which is an allocation of earnings between the holders of common stock and a company’s participating security holders. Our outstanding nonvested shares of restricted stock contain non-forfeitable rights to dividends and, therefore, are considered participating securities for purposes of computing earnings per share pursuant to the two-class method. We had no other participating securities at February 28, 2023 or 2022. |
Receivables
Receivables | 3 Months Ended |
Feb. 28, 2023 | |
Receivables [Abstract] | |
Receivables | Receivables Receivables consisted of the following (in thousands): February 28, November 30, Due from utility companies, improvement districts and municipalities $ 196,692 $ 181,443 Recoveries related to self-insurance and other legal claims 84,800 76,581 Refundable deposits and bonds 17,308 17,610 Other 54,911 52,201 Subtotal 353,711 327,835 Allowance for doubtful accounts (5,144) (5,068) Total $ 348,567 $ 322,767 |
Inventories
Inventories | 3 Months Ended |
Feb. 28, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in thousands): February 28, November 30, Homes completed or under construction $ 2,186,226 $ 2,414,675 Land under development 3,258,927 3,128,501 Total $ 5,445,153 $ 5,543,176 Land under development at February 28, 2023 and November 30, 2022 included land held for future development or sale of $25.3 million and $21.6 million, respectively. Interest is capitalized to inventories while the related communities or land parcels are being actively developed and until homes are completed or the land is available for immediate sale. Capitalized interest is amortized to construction and land costs as the related inventories are delivered to homebuyers or land buyers (as applicable). In the case of land held for future development and land held for sale, applicable interest is expensed as incurred. Our interest costs were as follows (in thousands): Three Months Ended February 28, 2023 2022 Capitalized interest at beginning of period $ 145,494 $ 161,119 Interest incurred 27,804 28,303 Interest amortized to construction and land costs (26,136) (29,773) Capitalized interest at end of period $ 147,162 $ 159,649 |
Inventory Impairments and Land
Inventory Impairments and Land Option Contract Abandonments | 3 Months Ended |
Feb. 28, 2023 | |
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 on a quarterly basis to determine if indicators of potential impairment exist. We record an inventory impairment charge on a community or land parcel that is active or held for future development when indicators of potential impairment exist and the carrying value of the real estate asset is greater than the undiscounted future net cash flows the asset is expected to generate. These real estate assets are written down to fair value, which is primarily determined based on the estimated future net cash flows discounted for inherent risk associated with each such asset, or other valuation techniques. We record an inventory impairment charge on land held for sale when the carrying value of a land parcel is greater than its fair value. These real estate assets are written down to fair value, less associated costs to sell. The estimated fair values of such assets are generally based on bona fide letters of intent from outside parties, executed sales contracts, broker quotes or similar information. We evaluated four active communities or land parcels for recoverability as of February 28, 2023 with a carrying value of $72.0 million. As of November 30, 2022, we evaluated five active communities or land parcels for recoverability with a carrying value of $118.7 million. In addition, we evaluated land held for future development for recoverability as of both February 28, 2023 and November 30, 2022. Based on the results of our evaluations, we recognized no inventory impairment charges for the three months ended February 28, 2023 and 2022. As of February 28, 2023, the aggregate carrying value of our inventory that had been impacted by inventory impairment charges was $91.9 million, representing seven communities and various other land parcels. 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. Our inventory controlled under land option contracts and other similar contracts is assessed on a quarterly basis to determine whether it continues to meet our investment return standards. When a decision is made not to exercise certain land option contracts and other similar contracts due to market conditions and/or changes in our marketing strategy, we write off the related inventory costs, including non-refundable deposits and unrecoverable pre-acquisition costs. Based on the results of our assessments, we recognized land option contract abandonment charges of $5.3 million for the three months ended February 28, 2023 and $.2 million for the three months ended February 28, 2022. Due to the judgment and assumptions applied in our inventory impairment and land option contract abandonment assessment processes, and in our estimations of the remaining operating lives of our inventory assets and the realization of our inventory balances, particularly as to land held for future development, it is possible that actual results could differ substantially from those estimated. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Feb. 28, 2023 | |
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 February 28, 2023 and November 30, 2022 was a VIE, but we were not the primary beneficiary of the VIE. Therefore, all of our joint ventures at February 28, 2023 and November 30, 2022 were unconsolidated and accounted for under the equity method because we did not have a controlling financial interest. Land Option Contracts and Other Similar Contracts. In the ordinary course of our business, we enter into land option contracts and other similar contracts with third parties and unconsolidated entities to acquire rights to land for the construction of homes. Under these contracts, we typically make a specified option payment or earnest money deposit in consideration for the right to purchase land in the future, usually at a predetermined price. We analyze each of our land option contracts and other similar contracts under the variable interest model to determine whether the land seller is a VIE and, if so, whether we are the primary beneficiary. Although we do not have legal title to the underlying land, we are required to consolidate a VIE if we are the primary beneficiary. As a result of our analyses, we determined that as of February 28, 2023 and November 30, 2022, we were not the primary beneficiary of any VIEs from which we have acquired rights to land under land option contracts and other similar contracts. We perform ongoing reassessments of whether we are the primary beneficiary of a VIE. The following table presents a summary of our interests in land option contracts and other similar contracts (in thousands): February 28, 2023 November 30, 2022 Cash Aggregate Cash Aggregate Unconsolidated VIEs $ 18,711 $ 618,939 $ 22,399 $ 635,502 Other land option contracts and other similar contracts 22,754 426,496 29,451 529,430 Total $ 41,465 $ 1,045,435 $ 51,850 $ 1,164,932 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 $30.4 million at February 28, 2023 and $33.1 million at November 30, 2022. These pre-acquisition costs and cash deposits were included in inventories in our consolidated balance sheets. |
Investments in Unconsolidated J
Investments in Unconsolidated Joint Ventures | 3 Months Ended |
Feb. 28, 2023 | |
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. As of both February 28, 2023 and November 30, 2022, we had investments in six homebuilding unconsolidated joint ventures. The following table presents combined condensed information from the statements of operations for our homebuilding unconsolidated joint ventures (in thousands): Three Months Ended February 28, 2023 2022 Revenues $ — $ 2,850 Construction and land costs — (2,299) Other expense, net (1,453) (430) Income (loss) $ (1,453) $ 121 The following table presents combined condensed balance sheet information for our homebuilding unconsolidated joint ventures (in thousands): February 28, November 30, Assets Cash $ 13,206 $ 14,066 Receivables 3,389 3,394 Inventories 134,204 114,465 Other assets 587 633 Total assets $ 151,386 $ 132,558 Liabilities and equity Accounts payable and other liabilities $ 8,357 $ 8,369 Notes payable (a) 46,098 34,396 Equity 96,931 89,793 Total liabilities and equity $ 151,386 $ 132,558 (a) As of both February 28, 2023 and 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 February 28, 2023 or November 30, 2022. 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 venture (in thousands): Three Months Ended February 28, 2023 2022 Revenues $ 20,190 $ 28,401 Expenses (17,025) (18,104) Income $ 3,165 $ 10,297 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 venture (in thousands): February 28, November 30, Assets Cash and cash equivalents $ 31,890 $ 28,120 Mortgage loans held for sale 198,364 250,572 Other assets 30,547 33,176 Total assets $ 260,801 $ 311,868 Liabilities and equity Accounts payable and other liabilities $ 12,770 $ 15,590 Funding facilities 191,533 242,944 Equity 56,498 53,334 Total liabilities and equity $ 260,801 $ 311,868 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 (“IRLCs”) . 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 $28.3 million at February 28, 2023 and $29.8 million at November 30, 2022. The changes in the fair value of IRLCs, which were reported in revenues for the applicable periods, were losses of $1.5 million for the three months ended February 28, 2023 and gains of $7.6 million for the three months ended February 28, 2022. 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. |
Other Assets
Other Assets | 3 Months Ended |
Feb. 28, 2023 | |
Other Assets [Abstract] | |
Other Assets | Other Assets Other assets consisted of the following (in thousands): February 28, November 30, Cash surrender value of corporate-owned life insurance contracts $ 55,087 $ 55,591 Lease right-of-use assets 26,255 25,469 Prepaid expenses 17,473 15,645 Debt issuance costs associated with unsecured revolving credit facility, net 4,087 4,346 Total $ 102,902 $ 101,051 |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 3 Months Ended |
Feb. 28, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Liabilities | Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consisted of the following (in thousands): February 28, November 30, Self-insurance and other legal liabilities $ 242,511 $ 234,128 Employee compensation and related benefits 106,330 182,443 Warranty liability 101,238 101,890 Customer deposits 69,235 76,738 Federal and state taxes payable 34,963 3,671 Lease liabilities 28,444 27,494 Inventory-related obligations (a) 24,502 19,136 Accrued interest payable 17,391 29,989 Real estate and business taxes 13,754 17,557 Other 40,243 43,925 Total $ 678,611 $ 736,971 (a) Represents liabilities for financing arrangements discussed in Note 8 – Variable Interest Entities, as well as liabilities for fixed or determinable amounts associated with tax increment financing entity (“TIFE”) assessments. As homes are delivered, our obligation to pay the remaining TIFE assessments associated with each underlying lot is transferred to 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
Leases | 3 Months Ended |
Feb. 28, 2023 | |
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. Lease expense is included in selling, general and administrative expenses in our consolidated statements of operations and includes costs for leases with terms of more than 12 months as well as short-term leases with terms of 12 months or less. Our total lease expense for the three months ended February 28, 2023 and 2022 was $5.2 million and $4.3 million, respectively , and included short-term lease costs of $1.7 million and $1.2 million, respectively. Variable lease costs and external sublease income for the three-month periods ended February 28, 2023 and 2022 were immaterial. The following table presents our lease right-of-use assets and lease liabilities (in thousands): February 28, November 30, Lease right-of-use assets (a) $ 26,299 $ 25,545 Lease liabilities (a) 28,490 27,580 |
Income Taxes
Income Taxes | 3 Months Ended |
Feb. 28, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income Tax Expense. Our income tax expense and effective tax rates were as follows (dollars in thousands): Three Months Ended February 28, 2023 2022 Income tax expense $ 36,700 $ 43,800 Effective tax rate 22.6 % 24.6 % Our income tax expense and effective tax rate for the three months ended February 28, 2023 included the favorable impact of $5.7 million of federal tax credits we recognized primarily from building energy-efficient homes and $2.7 million of excess tax benefits related to stock-based compensation, partly offset by $3.1 million of nondeductible executive compensation expense. Our income tax expense and effective tax rate for the three months ended February 28, 2022 reflected the favorable impacts of $2.2 million of excess tax benefits related to stock-based compensation and $.2 million of federal tax credits we recognized primarily from building energy-efficient homes, partly offset by $1.7 million of nondeductible executive compensation expense. Deferred Tax Asset Valuation Allowance. We evaluate our deferred tax assets quarterly to determine if adjustments to our valuation allowance are required based on the consideration of all available positive and negative evidence using a “more likely than not” standard with respect to whether deferred tax assets will be realized. Our evaluation considers, among other factors, our historical operating results, our expectation of future profitability, the duration of the applicable statutory carryforward periods, and conditions in the housing market and the broader economy. The ultimate realization of our deferred tax assets depends primarily on our ability to generate future taxable income during the periods in which the related deferred tax assets become deductible. The value of our deferred tax assets depends on applicable income tax rates. Our deferred tax assets of $173.0 million as of February 28, 2023 and $178.0 million as of November 30, 2022 were each partly offset by a valuation allowance of $17.1 million. The deferred tax asset valuation allowances as of February 28, 2023 and November 30, 2022 were primarily related to certain state net operating losses that had not met the “more likely than not” realization standard at those dates. Based on the evaluation of our deferred tax assets as of February 28, 2023, we determined that most of our deferred tax assets would be realized. Therefore, no adjustments to our deferred tax valuation allowance were needed for the three months ended February 28, 2023. We will continue to evaluate both the positive and negative evidence on a quarterly basis in determining the need for a valuation allowance with respect to our deferred tax assets. The accounting for deferred tax assets is based upon estimates of future results. Changes in positive and negative evidence, including differences between estimated and actual results, could result in changes in the valuation of our deferred tax assets that could have a material impact on our consolidated financial statements. Changes in existing federal and state tax laws and corporate income tax rates could also affect actual tax results and the realization of deferred tax assets over time. |
Notes Payable
Notes Payable | 3 Months Ended |
Feb. 28, 2023 | |
Debt Disclosure [Abstract] | |
Notes Payable | Notes Payable Notes payable consisted of the following (in thousands): February 28, November 30, Unsecured revolving credit facility $ 100,000 $ 150,000 Senior unsecured term loan due August 25, 2026 357,653 357,485 6.875% Senior notes due June 15, 2027 297,709 297,595 4.80% Senior notes due November 15, 2029 297,314 297,230 7.25% Senior notes due July 15, 2030 345,769 345,663 4.00% Senior notes due June 15, 2031 385,882 385,778 Mortgages and land contracts due to land sellers and other loans 4,523 4,760 Total $ 1,788,850 $ 1,838,511 The carrying amounts of our senior notes listed above are net of unamortized debt issuance costs, which totaled $15.7 million at February 28, 2023 and $16.2 million at November 30, 2022. Unsecured Revolving Credit Facility. We have a $1.09 billion Credit Facility that will mature on 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 Secured Overnight Financing Rate (“SOFR”) or a base rate, plus a spread that depends on our consolidated leverage ratio (“Leverage Ratio”), as defined under the Credit Facility. Interest is payable quarterly (base rate) or each month or three months (adjusted term SOFR). The Credit Facility also requires the payment of a commitment fee at a per annum rate ranging from .15% to .35% of the unused commitment, based on our Leverage Ratio. Under the terms of the Credit Facility, we are required, among other things, to maintain compliance with various covenants, including financial covenants relating to our consolidated tangible net worth, Leverage Ratio, and either a consolidated interest coverage ratio (“Interest Coverage Ratio”) or minimum level of liquidity, each as defined therein. 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 February 28, 2023, we had $100.0 million of cash borrowings and $6.6 million of letters of credit outstanding under the Credit Facility. Therefore, as of February 28, 2023, we had $983.4 million available for cash borrowings under the Credit Facility, with up to $243.4 million of that amount available for the issuance of letters of credit. As of February 28, 2023, the weighted average annual interest rate on our outstanding borrowings under the Credit Facility was 5.9%. Senior Unsecured Term Loan. We have a $360.0 million Term Loan with the lenders party thereto. 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 accrues at an adjusted term SOFR or a base rate, plus a spread that depends on our Leverage Ratio. Interest is payable quarterly (base rate) or each month or three months (adjusted term SOFR). 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 February 28, 2023, the weighted average annual interest rate on our outstanding borrowings under the Term Loan was 6.1%. Letter of Credit Facility. We maintain an unsecured letter of credit agreement with a financial institution (“LOC Facility”) to obtain letters of credit from time to time in the ordinary course of operating our business. Under the LOC Facility, which expires on February 13, 2025, we may issue up to $75.0 million of letters of credit. As of February 28, 2023 and November 30, 2022, we had letters of credit outstanding under the LOC Facility of $23.1 million and $36.4 million, respectively. Senior Notes. All the senior notes outstanding at February 28, 2023 and November 30, 2022 represent senior unsecured obligations that are guaranteed by our Guarantor Subsidiaries and rank equally in right of payment with all of our and our Guarantor Subsidiaries’ existing unsecured and unsubordinated indebtedness. All of our senior notes were issued in underwritten public offerings. Interest on each of these senior notes is payable semi-annually. The indenture governing our senior notes does not contain any financial covenants. Subject to specified exceptions, the indenture contains certain restrictive covenants that, among other things, limit our ability to incur secured indebtedness, or engage in sale and leaseback transactions involving property above a certain specified value. In addition, the indenture contains certain limitations related to mergers, consolidations, and sales of assets. As of February 28, 2023, we were in compliance with 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. Our ability to access the Credit Facility’s full borrowing capacity, as well as the LOC Facility’s full issuance capacity, also depends on the ability and willingness of the applicable lenders and financial institutions, including any substitute or additional lenders and financial institutions, to meet their commitments to fund loans, extend credit or provide payment guarantees to or for us under those instruments. Mortgages and Land Contracts Due to Land Sellers and Other Loans. As of February 28, 2023, inventories having a carrying value of $28.4 million were pledged to collateralize mortgages and land contracts due to land sellers and other loans. |
Fair Value Disclosures
Fair Value Disclosures | 3 Months Ended |
Feb. 28, 2023 | |
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): February 28, 2023 November 30, 2022 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 (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): February 28, 2023 November 30, 2022 Description Fair Value Carrying Estimated Carrying Estimated Financial Liabilities: Senior notes Level 2 $ 1,326,674 $ 1,221,538 $ 1,326,266 $ 1,205,875 (a) The carrying values for the senior notes, as presented, include unamortized debt issuance costs. Debt issuance costs are not factored into the estimated fair values of these notes. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Feb. 28, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments and contingencies include typical obligations of homebuilders for the completion of contracts and those incurred in the ordinary course of business. Warranty . We provide a limited warranty on all of our homes. The specific terms and conditions of our limited warranty program vary depending upon the markets in which we do business. We generally provide a structural warranty of 10 years, a warranty on electrical, heating, cooling, plumbing and certain other building systems each varying from two We estimate the costs that may be incurred under each limited warranty and record a liability in the amount of such costs at the time the revenue associated with the sale of each home is recognized. Our primary assumption in estimating the amounts we accrue for warranty costs is that historical claims experience is a strong indicator of future claims experience. Factors that affect our warranty liability include the number of homes delivered, historical and anticipated rates of warranty claims, and cost per claim. We periodically assess the adequacy of our accrued warranty liability, which is included in accrued expenses and other liabilities in our consolidated balance sheets, and adjust the amount as necessary based on our assessment. Our assessment includes the review of our actual warranty costs incurred to identify trends and changes in our warranty claims experience, and considers our home construction quality and customer service initiatives and outside events. While we believe the warranty liability currently reflected in our consolidated balance sheets to be adequate, unanticipated changes or developments in the legal environment, local weather, land or environmental conditions, quality of materials or methods used in the construction of homes or customer service practices and/or our warranty claims experience could have a significant impact on our actual warranty costs in future periods and such amounts could differ significantly from our current estimates. The changes in our warranty liability were as follows (in thousands): Three Months Ended February 28, 2023 2022 Balance at beginning of period $ 101,890 $ 96,153 Warranties issued 7,990 7,890 Payments (8,642) (6,577) Balance at end of period $ 101,238 $ 97,466 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 construction defect, bodily injury and property damage claims and related litigation or regulatory actions, up to certain limits. Our self-insurance liability generally covers the costs of settlements and/or repairs, if any, as well as our costs to defend and resolve the following types of claims: • Construction defect : Construction defect claims, which represent the largest component of our self-insurance liability, typically originate through a legal or regulatory process rather than directly by a homeowner and involve the alleged occurrence of a condition affecting two or more homes within the same community, or they involve a common area or homeowners’ association property within a community. These claims typically involve higher costs to resolve than individual homeowner warranty claims, and the rate of claims is highly variable. • Bodily injury : Bodily injury claims typically involve individuals (other than our employees) who claim they were injured while on our property or as a result of our operations. • Property damage : Property damage claims generally involve claims by third parties for alleged damage to real or personal property as a result of our operations. Such claims may occasionally include those made against us by owners of property located near our communities. Our self-insurance liability at each reporting date represents the estimated costs of reported claims, claims incurred but not yet reported, and claim adjustment expenses. The amount of our self-insurance liability is based on an analysis performed by a third-party actuary that uses our historical claim and expense data, as well as industry data to estimate these overall costs. Key assumptions used in developing these estimates include claim frequencies, severities and resolution patterns, which can occur over an extended period of time. These estimates are subject to variability due to the length of time between the delivery of a home to a homebuyer and when a construction defect claim is made, and the ultimate resolution of such claim; uncertainties regarding such claims relative to our markets and the types of products we build; and legal or regulatory actions and/or interpretations, among other factors. Due to the degree of judgment involved and the potential for variability in these underlying assumptions, our actual future costs could differ from those estimated. In addition, changes in the frequency and severity of reported claims and the estimates to resolve claims can impact the trends and assumptions used in the actuarial analysis, which could be material to our consolidated financial statements. Though state regulations vary, construction defect claims are reported and resolved over a long period of time, which can extend for 10 years or more. As a result, the majority of the estimated self-insurance liability based on the actuarial analysis relates to claims incurred but not yet reported. Therefore, adjustments related to individual existing claims generally do not significantly impact the overall estimated liability. Adjustments to our liabilities related to homes delivered in prior years are recorded in the period in which a change in our estimate occurs. Our self-insurance liability is presented on a gross basis for all periods without consideration of insurance recoveries and amounts we have paid on behalf of and expect to recover from other parties, if any. Estimated probable insurance and other recoveries of $31.5 million and $32.7 million are included in receivables in our consolidated balance sheets at February 28, 2023 and November 30, 2022, respectively. These self-insurance recoveries are principally based on actuarially determined amounts and depend on various factors, including, among other things, the above-described claim cost estimates, our insurance policy coverage limits for the applicable policy year(s), historical third-party recovery rates, insurance industry practices, the regulatory environment and legal precedent, and are subject to a high degree of variability from period to period. Because of the inherent uncertainty and variability in these assumptions, our actual insurance recoveries could differ significantly from amounts currently estimated. The changes in our self-insurance liability were as follows (in thousands): Three Months Ended February 28, 2023 2022 Balance at beginning of period $ 175,977 $ 189,131 Self-insurance provided 3,841 4,739 Payments (7,296) (2,466) Adjustments (a) (1,253) (810) Balance at end of period $ 171,269 $ 190,594 (a) Represents net changes in estimated probable recoveries related to self-insurance, which are recorded in receivables, to present our self-insurance liability on a gross basis. For most of our claims, there is no interaction between our warranty liability and self-insurance liability. Typically, if a matter is identified at its outset as either a warranty or self-insurance claim, it remains as such through its resolution. However, there can be instances of interaction between the liabilities, such as where individual homeowners in a community separately request warranty repairs to their homes to address a similar condition or issue and subsequently join together to initiate, or potentially initiate, a legal process with respect to that condition or issue and/or the repair work we have undertaken. In these instances, the claims and related repair work generally are initially covered by our warranty liability, and the costs associated with resolving the legal matter (including any additional repair work) are covered by our self-insurance liability. The payments we make in connection with claims and related repair work, whether covered within our warranty liability and/or our self-insurance liability, may be recovered from our insurers to the extent such payments exceed the self-insured retentions or deductibles under our general liability insurance policies. Also, in certain instances, in the course of resolving a claim, we pay amounts in advance of and/or on behalf of an independent contractor(s) or their insurer(s) and believe we will be reimbursed for such payments. Estimates of all such amounts, if any, are recorded as receivables in our consolidated balance sheets when any such recovery is considered probable. Florida Chapter 558 Actions . We and certain of our trade partners continue to receive claims from attorneys on behalf of individual owners of our homes and/or homeowners’ associations that allege, pursuant to Chapter 558 of the Florida Statutes, various construction defects, with most relating to stucco and water-intrusion issues. The claims primarily involve homes in our Jacksonville, Orlando, and Tampa operations. Under Chapter 558, homeowners must serve written notice of a construction defect(s) and provide the served construction and/or design contractor(s) with an opportunity to respond to the noticed issue(s) before they can file a lawsuit. Although we have resolved many of these claims without litigation, and a number of others have been resolved with applicable trade partners or their insurers covering the related costs, as of February 28, 2023, we had approximately 480 outstanding noticed claims, and some are scheduled for trial over the next few quarters and beyond. In addition, some of our trade partners’ insurers in some of these cases have informed us of their inability to continue to pay claims-related costs. At February 28, 2023, 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 February 28, 2023, we had $1.30 billion of performance bonds and $29.8 million of letters of credit outstanding. At November 30, 2022, we had $1.27 billion of performance bonds and $43.0 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. |
Legal Matters
Legal Matters | 3 Months Ended |
Feb. 28, 2023 | |
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 February 28, 2023, it was not reasonably possible that an additional material loss had been incurred in an amount in excess of the estimated amounts already recognized or disclosed in our consolidated financial statements. We evaluate our accruals for litigation and regulatory proceedings at least quarterly and, as appropriate, adjust them to reflect (a) the facts and circumstances known to us at the time, including information regarding negotiations, settlements, rulings and other relevant events and developments; (b) the advice and analyses of counsel; and (c) the assumptions and judgment of management. Similar factors and considerations are used in establishing new accruals for proceedings as to which losses have become probable and reasonably estimable at the time an evaluation is made. Our accruals for litigation and regulatory proceedings are presented on a gross basis without consideration of recoveries and amounts we have paid on behalf of and expect to recover from other parties, if any. Estimates of recoveries and amounts we have paid on behalf of and expect to recover from other parties, if any, are recorded as receivables when such recoveries are considered probable. Based on our experience, we believe the amounts that may be claimed or alleged against us in these proceedings are not a meaningful indicator of our potential liability. The outcome of any of these proceedings, including the defense and other litigation-related costs and expenses we may incur, however, is inherently uncertain and could differ significantly from the estimate reflected in a related accrual, if made. Therefore, it is possible that the ultimate outcome of any proceeding, if in excess of a related accrual or if an accrual had not been made, could be material to our consolidated financial statements. Pursuant to SEC rules, we will disclose any proceeding in which a governmental authority is a party and that arises under any federal, state or local provisions enacted or adopted regulating the discharge of materials into the environment or primarily for the purpose of protecting the environment only where we believe that such proceeding will result in monetary sanctions on us, exclusive of interest and costs, above $1.0 million or is otherwise material to our consolidated financial statements. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Feb. 28, 2023 | |
Equity [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity A summary of changes in stockholders’ equity is presented below (in thousands): Three Months Ended February 28, 2023 and 2022 Number of Shares Common Grantor Treasury Common Stock Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Grantor Stock Treasury Stock Total Stockholders’ Equity Balance at November 30, 2022 100,711 (6,705) (10,016) $ 100,711 $ 836,260 $ 3,143,578 $ (5,575) $ (72,718) $ (341,461) $ 3,660,795 Net income — — — — — 125,500 — — — 125,500 Dividends on common stock — — — — — (12,476) — — — (12,476) Employee stock options/other 72 — — 72 1,062 — — — — 1,134 Stock awards — — 671 — (23,285) — — — 23,285 — Stock-based compensation — — — — 5,867 — — — — 5,867 Stock repurchases — — (1,965) — — — — — (75,609) (75,609) Tax payments associated with stock-based compensation awards — — (277) — — — — — (9,748) (9,748) Balance at February 28, 2023 100,783 (6,705) (11,587) $ 100,783 $ 819,904 $ 3,256,602 $ (5,575) $ (72,718) $ (403,533) $ 3,695,463 Balance at November 30, 2021 100,711 (6,705) (5,785) $ 100,711 $ 848,620 $ 2,379,364 $ (19,119) $ (72,718) $ (217,383) $ 3,019,475 Net income — — — — — 134,257 — — — 134,257 Dividends on common stock — — — — — (14,130) — — — (14,130) Stock awards — — 721 — (27,249) — — — 27,249 — Stock-based compensation — — — — 6,867 — — — — 6,867 Tax payments associated with stock-based compensation awards — — (320) — — — — — (12,153) (12,153) Balance at February 28, 2022 100,711 (6,705) (5,384) $ 100,711 $ 828,238 $ 2,499,491 $ (19,119) $ (72,718) $ (202,287) $ 3,134,316 On February 24, 2023, the management development and compensation committee of our board of directors approved the payout of 602,265 shares of our common stock in connection with the vesting of PSUs that were granted to certain employees on October 3, 2019. The shares paid out under the PSUs reflected our achievement of certain performance measures that were based on cumulative earnings per share, average return on invested capital, and revenue growth relative to a peer group of high-production public homebuilding companies over the three-year period from December 1, 2019 through November 30, 2022. Of the shares of common stock paid out, 276,853 shares, or $9.7 million, were purchased by us in the 2023 first quarter to satisfy the recipients’ withholding taxes on the vesting of the PSUs. The shares purchased were not considered repurchases under the authorizations described below. On April 7, 2022, our board of directors authorized us to repurchase up to $300.0 million of our outstanding common stock, excluding excise tax. As of November 30, 2022, there was $150.0 million of remaining availability under this share repurchase authorization, excluding excise tax. In the 2023 first quarter, we repurchased 1,965,442 shares of our common stock on the open market pursuant to this authorization at a total cost of approximately $75.0 million, excluding excise tax. Repurchases under the 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 February 28, 2023, we were authorized to repurchase up to $75.0 million of our outstanding common stock in additional transactions, excluding excise tax. The Inflation Reduction Act of 2022, which was enacted into law on August 16, 2022, imposed a nondeductible 1% excise tax on the net value of certain stock repurchases made after December 31, 2022. In the 2023 first quarter, we reflected the applicable excise tax in treasury stock as part of the cost basis of the stock repurchased and recorded a corresponding liability for the excise taxes payable in accrued expenses and other liabilities on our consolidated balance sheet. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Feb. 28, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock Options. At February 28, 2023 and November 30, 2022, we had 1,602,413 and 1,674,393 stock options outstanding with a weighted average exercise price of $15.55 and $15.56, respectively. We have not granted any stock option awards since 2016. In the 2023 first quarter, 71,980 stock options with a weighted average exercise price of $15.75 were exercised. As of February 28, 2023, stock options outstanding and stock options exercisable each had a weighted average remaining contractual life of 2.6 years. As all outstanding stock options have been fully vested since 2019, there was no stock-based compensation expense associated with stock options for the three-month periods ended February 28, 2023 and 2022. Stock options outstanding and stock options exercisable each had an aggregate intrinsic value of $31.6 million at February 28, 2023. (The intrinsic value of a stock option is the amount by which the market value of a share of the underlying common stock exceeds the exercise price of the stock option.) |
Supplemental Disclosure to Cons
Supplemental Disclosure to Consolidated Statements of Cash Flows | 3 Months Ended |
Feb. 28, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Disclosure to Consolidated Statements of Cash Flows | Supplemental Disclosure to Consolidated Statements of Cash Flows The following are supplemental disclosures to the consolidated statements of cash flows (in thousands): Three Months Ended February 28, 2023 2022 Summary of cash and cash equivalents at end of period: Homebuilding $ 260,127 $ 240,688 Financial services 700 2,049 Total $ 260,827 $ 242,737 Supplemental disclosures of cash flow information: Interest paid, net of amounts capitalized $ 12,598 $ (7,606) Income taxes paid 408 340 Supplemental disclosures of non-cash activities: Increase (decrease) in consolidated inventories not owned 5,596 (14,623) Increase in inventories due to distributions of land and land development from an unconsolidated joint venture 2,963 3,951 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Feb. 28, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventOn March 21, 2023, our board of directors authorized us to repurchase up to $500.0 million of our outstanding common stock, excluding excise tax. This authorization replaced a prior board of directors authorization, as discussed in Note 18 – Stockholders’ Equity, which had $75.0 million remaining, excluding excise tax. Repurchases under the new authorization may occur periodically through open market purchases, privately negotiated transactions or otherwise, with the timing and amount at management’s discretion and dependent on market, business and other conditions. This share repurchase authorization will continue in effect until fully used or earlier terminated or suspended by our board of directors, and does not obligate us to purchase any shares. As of the date of this report, we have not repurchased any shares under this authorization. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Feb. 28, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Cash and Cash Equivalents | We consider all highly liquid short-term investments purchased with an original maturity of three months or less to be cash equivalents. |
Comprehensive Income | Our comprehensive income was $125.5 million for the three months ended February 28, 2023 and $134.3 million for the three months ended February 28, 2022. Our comprehensive income for each of the three-month periods ended February 28, 2023 and 2022 was equal to our net income for the respective periods. |
Segment Reporting | We have identified five operating reporting segments, comprised of four homebuilding reporting segments and one financial services reporting segment. As of February 28, 2023, our homebuilding reporting segments conducted ongoing operations in the following states: West Coast: California, Idaho and Washington Southwest: Arizona and Nevada Central: Colorado and Texas Southeast: Florida and North Carolina Our homebuilding reporting segments are engaged in the acquisition and development of land primarily for residential purposes and offer a wide variety of homes that are designed to appeal to first-time, first move-up and active adult homebuyers. Our homebuilding operations generate most of their revenues from the delivery of completed homes to homebuyers. They also earn revenues from the sale of land. Our financial services reporting segment offers property and casualty insurance and, in certain instances, earthquake, flood and personal property insurance to our homebuyers in the same markets as our homebuilding reporting segments, and provides title services in the majority of our markets located within our Southwest, Central and Southeast homebuilding reporting segments. Our financial services reporting segment earns revenues primarily from insurance commissions and from the provision of title services. We offer mortgage banking services, including residential consumer mortgage loan (“mortgage loan”) originations, to our homebuyers indirectly through KBHS Home Loans, LLC (“KBHS”), our unconsolidated joint venture with GR Alliance Ventures, LLC (“GR Alliance”). We and GR Alliance each have a 50.0% ownership interest, with GR Alliance providing management oversight of KBHS’ operations. Our reporting segments follow the same accounting policies used for our consolidated financial statements. The results of each reporting segment are not necessarily indicative of the results that would have occurred had the segment been an independent, stand-alone entity during the periods presented, nor are they indicative of the results to be expected in future periods. |
Earnings Per Share | We compute earnings per share using the two-class method, which is an allocation of earnings between the holders of common stock and a company’s participating security holders. Our outstanding nonvested shares of restricted stock contain non-forfeitable rights to dividends and, therefore, are considered participating securities for purposes of computing earnings per share pursuant to the two-class method. We had no other participating securities at February 28, 2023 or 2022. |
Interest Capitalization | 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. |
Inventory Impairment | Each community or land parcel in our owned inventory is assessed on a quarterly basis to determine if indicators of potential impairment exist. We record an inventory impairment charge on a community or land parcel that is active or held for future development when indicators of potential impairment exist and the carrying value of the real estate asset is greater than the undiscounted future net cash flows the asset is expected to generate. These real estate assets are written down to fair value, which is primarily determined based on the estimated future net cash flows discounted for inherent risk associated with each such asset, or other valuation techniques. We record an inventory impairment charge on land held for sale when the carrying value of a land parcel is greater than its fair value. These real estate assets are written down to fair value, less associated costs to sell. The estimated fair values of such assets are generally based on bona fide letters of intent from outside parties, executed sales contracts, broker quotes or similar information. |
Consolidation | We participate in joint ventures from time to time that conduct land acquisition, land development and/or other homebuilding activities in various markets where our homebuilding operations are located. Our investments in these joint ventures may create a variable interest in a variable interest entity (“VIE”), depending on the contractual terms of the arrangement. We analyze our joint ventures under the variable interest model to determine whether they are VIEs and, if so, whether we are the primary beneficiary. Based on our analyses, we determined that one of our joint ventures at February 28, 2023 and November 30, 2022 was a VIE, but we were not the primary beneficiary of the VIE. Therefore, all of our joint ventures at February 28, 2023 and November 30, 2022 were unconsolidated and accounted for under the equity method because we did not have a controlling financial interest. Land Option Contracts and Other Similar Contracts. In the ordinary course of our business, we enter into land option contracts and other similar contracts with third parties and unconsolidated entities to acquire rights to land for the construction of homes. Under these contracts, we typically make a specified option payment or earnest money deposit in consideration for the right to purchase land in the future, usually at a predetermined price. We analyze each of our land option contracts and other similar contracts under the variable interest model to determine whether the land seller is a VIE and, if so, whether we are the primary beneficiary. Although we do not have legal title to the underlying land, we are required to consolidate a VIE if we are the primary beneficiary. As a result of our analyses, we determined that as of February 28, 2023 and November 30, 2022, 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. |
Debt | 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). Funding facilities. KBHS maintains warehouse line of credit and master repurchase agreements with various financial institutions to fund its originated mortgage loans, with its mortgage loans held for sale pledged as collateral under these agreements. The agreements contain covenants which include certain financial requirements, including maintenance of minimum tangible net worth, minimum liquid assets, maximum debt to net worth ratio and positive net income, as defined in the agreements. KBHS was in compliance with these covenants as of February 28, 2023. In addition to its compliance with these covenants, KBHS also depends on the ability and willingness of the applicable lenders and financial institutions to extend such credit facilities to KBHS to fund its originated mortgage loans. KBHS intends to renew these facilities when they expire at various dates in 2023. The warehouse line of credit and master repurchase agreements are not guaranteed by us or any of the subsidiaries that guarantee our senior notes, unsecured revolving credit facility with various banks (“Credit Facility”) and senior unsecured term loan agreement (“Term Loan”), (collectively, “Guarantor Subsidiaries”). |
Mortgage Loans Held for Sale | 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 | Interest Rate Lock Commitments (“IRLCs”) . 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 $28.3 million at February 28, 2023 and $29.8 million at November 30, 2022. The changes in the fair value of IRLCs, which were reported in revenues for the applicable periods, were losses of $1.5 million for the three months ended February 28, 2023 and gains of $7.6 million for the three months ended February 28, 2022. |
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. 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. |
Income Taxes | We evaluate our deferred tax assets quarterly to determine if adjustments to our valuation allowance are required based on the consideration of all available positive and negative evidence using a “more likely than not” standard with respect to whether deferred tax assets will be realized. Our evaluation considers, among other factors, our historical operating results, our expectation of future profitability, the duration of the applicable statutory carryforward periods, and conditions in the housing market and the broader economy. The ultimate realization of our deferred tax assets depends primarily on our ability to generate future taxable income during the periods in which the related deferred tax assets become deductible. The value of our deferred tax assets depends on applicable income tax rates. |
Fair Value Measurements and Disclosures | 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. |
Warranty | Warranty . We provide a limited warranty on all of our homes. The specific terms and conditions of our limited warranty program vary depending upon the markets in which we do business. We generally provide a structural warranty of 10 years, a warranty on electrical, heating, cooling, plumbing and certain other building systems each varying from two |
Guarantees | Guarantees. In the normal course of our business, we issue certain representations, warranties and guarantees related to our home sales and land sales. Based on historical experience, we do not believe any potential liability with respect to these representations, warranties or guarantees would be material to our consolidated financial statements. |
Self-Insurance | Self-Insurance. We maintain, and require the majority of our independent contractors to maintain, general liability insurance (including construction defect and bodily injury coverage) and workers’ compensation insurance. These insurance policies protect us against a portion of our risk of loss from claims related to our homebuilding activities, subject to certain self-insured retentions, deductibles and other coverage limits. We also maintain certain other insurance policies. Costs associated with our self-insurance programs are included in selling, general and administrative expenses. In Arizona, California, Colorado and Nevada, our contractors’ general liability insurance primarily takes the form of a wrap-up policy under a program where eligible independent contractors are enrolled as insureds on each community. Enrolled contractors 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 construction defect, bodily injury and property damage claims and related litigation or regulatory actions, up to certain limits. Our self-insurance liability generally covers the costs of settlements and/or repairs, if any, as well as our costs to defend and resolve the following types of claims: • Construction defect : Construction defect claims, which represent the largest component of our self-insurance liability, typically originate through a legal or regulatory process rather than directly by a homeowner and involve the alleged occurrence of a condition affecting two or more homes within the same community, or they involve a common area or homeowners’ association property within a community. These claims typically involve higher costs to resolve than individual homeowner warranty claims, and the rate of claims is highly variable. • Bodily injury : Bodily injury claims typically involve individuals (other than our employees) who claim they were injured while on our property or as a result of our operations. • Property damage : Property damage claims generally involve claims by third parties for alleged damage to real or personal property as a result of our operations. Such claims may occasionally include those made against us by owners of property located near our communities. Our self-insurance liability at each reporting date represents the estimated costs of reported claims, claims incurred but not yet reported, and claim adjustment expenses. The amount of our self-insurance liability is based on an analysis performed by a third-party actuary that uses our historical claim and expense data, as well as industry data to estimate these overall costs. Key assumptions used in developing these estimates include claim frequencies, severities and resolution patterns, which can occur over an extended period of time. These estimates are subject to variability due to the length of time between the delivery of a home to a homebuyer and when a construction defect claim is made, and the ultimate resolution of such claim; uncertainties regarding such claims relative to our markets and the types of products we build; and legal or regulatory actions and/or interpretations, among other factors. Due to the degree of judgment involved and the potential for variability in these underlying assumptions, our actual future costs could differ from those estimated. In addition, changes in the frequency and severity of reported claims and the estimates to resolve claims can impact the trends and assumptions used in the actuarial analysis, which could be material to our consolidated financial statements. Though state regulations vary, construction defect claims are reported and resolved over a long period of time, which can extend for 10 years or more. As a result, the majority of the estimated self-insurance liability based on the actuarial analysis relates to claims incurred but not yet reported. Therefore, adjustments related to individual existing claims generally do not significantly impact the overall estimated liability. Adjustments to our liabilities related to homes delivered in prior years are recorded in the period in which a change in our estimate occurs. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Feb. 28, 2023 | |
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): Three Months Ended February 28, 2023 2022 Revenues: West Coast $ 540,019 $ 658,874 Southwest 239,587 209,767 Central 389,951 355,322 Southeast 208,980 170,191 Total $ 1,378,537 $ 1,394,154 Pretax income (loss): West Coast $ 59,550 $ 110,034 Southwest 44,031 35,905 Central 58,833 38,116 Southeast 23,525 20,266 Corporate and other (29,740) (34,700) Total $ 156,199 $ 169,621 Inventory impairment and land option contract abandonment charges: West Coast $ 869 $ — Southwest — 109 Central 951 66 Southeast 3,469 — Total $ 5,289 $ 175 February 28, November 30, Assets: West Coast $ 2,548,876 $ 2,631,598 Southwest 1,063,712 1,074,912 Central 1,476,402 1,493,486 Southeast 927,498 929,208 Corporate and other 436,676 463,194 Total $ 6,453,164 $ 6,592,398 |
Financial Services (Tables)
Financial Services (Tables) | 3 Months Ended |
Feb. 28, 2023 | |
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): Three Months Ended February 28, 2023 2022 Revenues Insurance commissions $ 3,374 $ 2,518 Title services 2,403 2,101 Other — 16 Total 5,777 4,635 Expenses General and administrative (1,358) (1,347) Operating income 4,419 3,288 Equity in income of unconsolidated joint venture 1,582 5,148 Pretax income $ 6,001 $ 8,436 |
Financial services | |
Segment Reporting Information [Line Items] | |
Schedule of Financial Services Assets and Liabilities | February 28, November 30, Assets Cash and cash equivalents $ 700 $ 1,681 Receivables 2,978 3,475 Investments in unconsolidated joint venture 28,249 26,678 Other assets (a) 29,010 27,698 Total assets $ 60,937 $ 59,532 Liabilities Accounts payable and accrued expenses $ 1,377 $ 3,128 Total liabilities $ 1,377 $ 3,128 (a) Other assets at February 28, 2023 and November 30, 2022 included $28.9 million and $27.6 million, respectively, of contract assets for estimated future renewal commissions. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Feb. 28, 2023 | |
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): Three Months Ended February 28, 2023 2022 Numerator: Net income $ 125,500 $ 134,257 Less: Distributed earnings allocated to nonvested restricted stock (87) (65) Less: Undistributed earnings allocated to nonvested restricted stock (777) (584) Numerator for basic earnings per share 124,636 133,608 Effect of dilutive securities: Add: Undistributed earnings allocated to nonvested restricted stock 777 584 Less: Undistributed earnings reallocated to nonvested restricted stock (754) (566) Numerator for diluted earnings per share $ 124,659 $ 133,626 Three Months Ended February 28, 2023 2022 Denominator: Weighted average shares outstanding — basic 83,468 88,285 Effect of dilutive securities: Share-based payments 2,527 2,782 Weighted average shares outstanding — diluted 85,995 91,067 Basic earnings per share $ 1.49 $ 1.51 Diluted earnings per share $ 1.45 $ 1.47 |
Receivables (Tables)
Receivables (Tables) | 3 Months Ended |
Feb. 28, 2023 | |
Receivables [Abstract] | |
Schedule of Receivables | Receivables consisted of the following (in thousands): February 28, November 30, Due from utility companies, improvement districts and municipalities $ 196,692 $ 181,443 Recoveries related to self-insurance and other legal claims 84,800 76,581 Refundable deposits and bonds 17,308 17,610 Other 54,911 52,201 Subtotal 353,711 327,835 Allowance for doubtful accounts (5,144) (5,068) Total $ 348,567 $ 322,767 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Feb. 28, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following (in thousands): February 28, November 30, Homes completed or under construction $ 2,186,226 $ 2,414,675 Land under development 3,258,927 3,128,501 Total $ 5,445,153 $ 5,543,176 |
Schedule of Capitalized Interest Costs | Our interest costs were as follows (in thousands): Three Months Ended February 28, 2023 2022 Capitalized interest at beginning of period $ 145,494 $ 161,119 Interest incurred 27,804 28,303 Interest amortized to construction and land costs (26,136) (29,773) Capitalized interest at end of period $ 147,162 $ 159,649 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Feb. 28, 2023 | |
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): February 28, 2023 November 30, 2022 Cash Aggregate Cash Aggregate Unconsolidated VIEs $ 18,711 $ 618,939 $ 22,399 $ 635,502 Other land option contracts and other similar contracts 22,754 426,496 29,451 529,430 Total $ 41,465 $ 1,045,435 $ 51,850 $ 1,164,932 |
Investments in Unconsolidated_2
Investments in Unconsolidated Joint Ventures (Tables) | 3 Months Ended |
Feb. 28, 2023 | |
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): Three Months Ended February 28, 2023 2022 Revenues $ — $ 2,850 Construction and land costs — (2,299) Other expense, net (1,453) (430) Income (loss) $ (1,453) $ 121 |
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): February 28, November 30, Assets Cash $ 13,206 $ 14,066 Receivables 3,389 3,394 Inventories 134,204 114,465 Other assets 587 633 Total assets $ 151,386 $ 132,558 Liabilities and equity Accounts payable and other liabilities $ 8,357 $ 8,369 Notes payable (a) 46,098 34,396 Equity 96,931 89,793 Total liabilities and equity $ 151,386 $ 132,558 (a) As of both February 28, 2023 and 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 February 28, 2023 or November 30, 2022. |
Financial services | |
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 venture (in thousands): Three Months Ended February 28, 2023 2022 Revenues $ 20,190 $ 28,401 Expenses (17,025) (18,104) Income $ 3,165 $ 10,297 |
Schedule of Balance sheets of unconsolidated joint ventures | The following table presents combined condensed balance sheet information for our financial services unconsolidated joint venture (in thousands): February 28, November 30, Assets Cash and cash equivalents $ 31,890 $ 28,120 Mortgage loans held for sale 198,364 250,572 Other assets 30,547 33,176 Total assets $ 260,801 $ 311,868 Liabilities and equity Accounts payable and other liabilities $ 12,770 $ 15,590 Funding facilities 191,533 242,944 Equity 56,498 53,334 Total liabilities and equity $ 260,801 $ 311,868 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Feb. 28, 2023 | |
Other Assets [Abstract] | |
Schedule of Other Assets | Other assets consisted of the following (in thousands): February 28, November 30, Cash surrender value of corporate-owned life insurance contracts $ 55,087 $ 55,591 Lease right-of-use assets 26,255 25,469 Prepaid expenses 17,473 15,645 Debt issuance costs associated with unsecured revolving credit facility, net 4,087 4,346 Total $ 102,902 $ 101,051 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 3 Months Ended |
Feb. 28, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consisted of the following (in thousands): February 28, November 30, Self-insurance and other legal liabilities $ 242,511 $ 234,128 Employee compensation and related benefits 106,330 182,443 Warranty liability 101,238 101,890 Customer deposits 69,235 76,738 Federal and state taxes payable 34,963 3,671 Lease liabilities 28,444 27,494 Inventory-related obligations (a) 24,502 19,136 Accrued interest payable 17,391 29,989 Real estate and business taxes 13,754 17,557 Other 40,243 43,925 Total $ 678,611 $ 736,971 (a) Represents liabilities for financing arrangements discussed in Note 8 – Variable Interest Entities, as well as liabilities for fixed or determinable amounts associated with tax increment financing entity (“TIFE”) assessments. As homes are delivered, our obligation to pay the remaining TIFE assessments associated with each underlying lot is transferred to 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 (Tables)
Leases (Tables) | 3 Months Ended |
Feb. 28, 2023 | |
Leases [Abstract] | |
Schedule of Lease Information | The following table presents our lease right-of-use assets and lease liabilities (in thousands): February 28, November 30, Lease right-of-use assets (a) $ 26,299 $ 25,545 Lease liabilities (a) 28,490 27,580 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Feb. 28, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense and Effective Tax Rates | Our income tax expense and effective tax rates were as follows (dollars in thousands): Three Months Ended February 28, 2023 2022 Income tax expense $ 36,700 $ 43,800 Effective tax rate 22.6 % 24.6 % |
Notes Payable (Tables)
Notes Payable (Tables) | 3 Months Ended |
Feb. 28, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Mortgages and Notes Payable | Notes payable consisted of the following (in thousands): February 28, November 30, Unsecured revolving credit facility $ 100,000 $ 150,000 Senior unsecured term loan due August 25, 2026 357,653 357,485 6.875% Senior notes due June 15, 2027 297,709 297,595 4.80% Senior notes due November 15, 2029 297,314 297,230 7.25% Senior notes due July 15, 2030 345,769 345,663 4.00% Senior notes due June 15, 2031 385,882 385,778 Mortgages and land contracts due to land sellers and other loans 4,523 4,760 Total $ 1,788,850 $ 1,838,511 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 3 Months Ended |
Feb. 28, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on Nonrecurring Basis | The following table presents the fair value hierarchy and our assets measured at fair value on a nonrecurring basis (in thousands): February 28, 2023 November 30, 2022 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 (a) Amounts represent the aggregate fair value for real estate assets impacted by inventory impairment charges during the applicable period, as of the date that the fair value measurements were made. The carrying value for these real estate assets may have subsequently increased or decreased from the fair value reflected due to activity that has occurred since the measurement date. |
Schedule of Fair Value Hierarchy, Carrying Values, and Estimated Fair Values of Financial Instruments | The following table presents the fair value hierarchy, carrying values and estimated fair values of our financial instruments, except those for which the carrying values approximate fair values (in thousands): February 28, 2023 November 30, 2022 Description Fair Value Carrying Estimated Carrying Estimated Financial Liabilities: Senior notes Level 2 $ 1,326,674 $ 1,221,538 $ 1,326,266 $ 1,205,875 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Feb. 28, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | The changes in our warranty liability were as follows (in thousands): Three Months Ended February 28, 2023 2022 Balance at beginning of period $ 101,890 $ 96,153 Warranties issued 7,990 7,890 Payments (8,642) (6,577) Balance at end of period $ 101,238 $ 97,466 |
Schedule of Self-Insurance Liability | The changes in our self-insurance liability were as follows (in thousands): Three Months Ended February 28, 2023 2022 Balance at beginning of period $ 175,977 $ 189,131 Self-insurance provided 3,841 4,739 Payments (7,296) (2,466) Adjustments (a) (1,253) (810) Balance at end of period $ 171,269 $ 190,594 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Feb. 28, 2023 | |
Equity [Abstract] | |
Summary of Changes in Stockholders’ Equity | A summary of changes in stockholders’ equity is presented below (in thousands): Three Months Ended February 28, 2023 and 2022 Number of Shares Common Grantor Treasury Common Stock Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Grantor Stock Treasury Stock Total Stockholders’ Equity Balance at November 30, 2022 100,711 (6,705) (10,016) $ 100,711 $ 836,260 $ 3,143,578 $ (5,575) $ (72,718) $ (341,461) $ 3,660,795 Net income — — — — — 125,500 — — — 125,500 Dividends on common stock — — — — — (12,476) — — — (12,476) Employee stock options/other 72 — — 72 1,062 — — — — 1,134 Stock awards — — 671 — (23,285) — — — 23,285 — Stock-based compensation — — — — 5,867 — — — — 5,867 Stock repurchases — — (1,965) — — — — — (75,609) (75,609) Tax payments associated with stock-based compensation awards — — (277) — — — — — (9,748) (9,748) Balance at February 28, 2023 100,783 (6,705) (11,587) $ 100,783 $ 819,904 $ 3,256,602 $ (5,575) $ (72,718) $ (403,533) $ 3,695,463 Balance at November 30, 2021 100,711 (6,705) (5,785) $ 100,711 $ 848,620 $ 2,379,364 $ (19,119) $ (72,718) $ (217,383) $ 3,019,475 Net income — — — — — 134,257 — — — 134,257 Dividends on common stock — — — — — (14,130) — — — (14,130) Stock awards — — 721 — (27,249) — — — 27,249 — Stock-based compensation — — — — 6,867 — — — — 6,867 Tax payments associated with stock-based compensation awards — — (320) — — — — — (12,153) (12,153) Balance at February 28, 2022 100,711 (6,705) (5,384) $ 100,711 $ 828,238 $ 2,499,491 $ (19,119) $ (72,718) $ (202,287) $ 3,134,316 |
Supplemental Disclosure to Co_2
Supplemental Disclosure to Consolidated Statements of Cash Flows (Tables) | 3 Months Ended |
Feb. 28, 2023 | |
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): Three Months Ended February 28, 2023 2022 Summary of cash and cash equivalents at end of period: Homebuilding $ 260,127 $ 240,688 Financial services 700 2,049 Total $ 260,827 $ 242,737 Supplemental disclosures of cash flow information: Interest paid, net of amounts capitalized $ 12,598 $ (7,606) Income taxes paid 408 340 Supplemental disclosures of non-cash activities: Increase (decrease) in consolidated inventories not owned 5,596 (14,623) Increase in inventories due to distributions of land and land development from an unconsolidated joint venture 2,963 3,951 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Narratives) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Nov. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Cash equivalents | $ 51.3 | $ 15.8 | |
Other comprehensive income (loss) | $ 125.5 | $ 134.3 |
Segment Information (Narratives
Segment Information (Narratives) (Details) | 3 Months Ended |
Feb. 28, 2023 segment | |
Schedule of Equity Method Investments [Line Items] | |
Number of reportable segments | 5 |
KBHS, LLC | Financial services | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest in joint venture | 50% |
KBHS, LLC | GR Alliance, LLC | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest in joint venture | 50% |
Homebuilding | |
Schedule of Equity Method Investments [Line Items] | |
Number of reportable segments | 4 |
Financial services | |
Schedule of Equity Method Investments [Line Items] | |
Number of reportable segments | 1 |
Segment Information (Segment Fi
Segment Information (Segment Financial Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Nov. 30, 2022 | |
Revenues: | |||
Revenues | $ 1,384,314 | $ 1,398,789 | |
Pretax income (loss): | |||
Pretax income (loss) | 162,200 | 178,057 | |
Inventory impairments and land option contract abandonments | 5,289 | 175 | |
Assets: | |||
Total assets | 6,514,101 | $ 6,651,930 | |
Homebuilding | |||
Revenues: | |||
Revenues | 1,378,537 | 1,394,154 | |
Pretax income (loss): | |||
Pretax income (loss) | 156,199 | 169,621 | |
Inventory impairments and land option contract abandonments | 5,289 | 175 | |
Assets: | |||
Total assets | 6,453,164 | 6,592,398 | |
Homebuilding | West Coast | |||
Revenues: | |||
Revenues | 540,019 | 658,874 | |
Pretax income (loss): | |||
Pretax income (loss) | 59,550 | 110,034 | |
Inventory impairments and land option contract abandonments | 869 | 0 | |
Assets: | |||
Total assets | 2,548,876 | 2,631,598 | |
Homebuilding | Southwest | |||
Revenues: | |||
Revenues | 239,587 | 209,767 | |
Pretax income (loss): | |||
Pretax income (loss) | 44,031 | 35,905 | |
Inventory impairments and land option contract abandonments | 0 | 109 | |
Assets: | |||
Total assets | 1,063,712 | 1,074,912 | |
Homebuilding | Central | |||
Revenues: | |||
Revenues | 389,951 | 355,322 | |
Pretax income (loss): | |||
Pretax income (loss) | 58,833 | 38,116 | |
Inventory impairments and land option contract abandonments | 951 | 66 | |
Assets: | |||
Total assets | 1,476,402 | 1,493,486 | |
Homebuilding | Southeast | |||
Revenues: | |||
Revenues | 208,980 | 170,191 | |
Pretax income (loss): | |||
Pretax income (loss) | 23,525 | 20,266 | |
Inventory impairments and land option contract abandonments | 3,469 | 0 | |
Assets: | |||
Total assets | 927,498 | 929,208 | |
Homebuilding | Corporate and other | |||
Pretax income (loss): | |||
Pretax income (loss) | (29,740) | $ (34,700) | |
Assets: | |||
Total assets | $ 436,676 | $ 463,194 |
Financial Services (Schedule of
Financial Services (Schedule of Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Revenues | ||
Total | $ 1,384,314 | $ 1,398,789 |
Expenses | ||
Equity in income of unconsolidated joint venture | 825 | 5,171 |
Total pretax income | 162,200 | 178,057 |
Financial services | ||
Revenues | ||
Insurance commissions | 3,374 | 2,518 |
Title services | 2,403 | 2,101 |
Other | 0 | 16 |
Total | 5,777 | 4,635 |
Expenses | ||
General and administrative | 1,358 | 1,347 |
Operating income | 4,419 | 3,288 |
Equity in income of unconsolidated joint venture | 1,582 | 5,148 |
Total pretax income | $ 6,001 | $ 8,436 |
Financial Services (Schedule _2
Financial Services (Schedule of Assets and Liabilities) (Details) - USD ($) $ in Thousands | Feb. 28, 2023 | Nov. 30, 2022 | |
Assets | |||
Total assets | $ 6,514,101 | $ 6,651,930 | |
Financial services | |||
Assets | |||
Cash and cash equivalents | 700 | 1,681 | |
Receivables | 2,978 | 3,475 | |
Investments in unconsolidated joint ventures | 28,249 | 26,678 | |
Other assets | [1] | 29,010 | 27,698 |
Total assets | 60,937 | 59,532 | |
Liabilities | |||
Accounts payable and accrued expenses | 1,377 | 3,128 | |
Total liabilities | 1,377 | 3,128 | |
Contract assets for estimated future renewal commissions | $ 28,900 | $ 27,600 | |
[1]Other assets at February 28, 2023 and November 30, 2022 included $28.9 million and $27.6 million, respectively, of contract assets for estimated future renewal commissions. |
Earnings Per Share (Basic and D
Earnings Per Share (Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Numerator: | ||
Net income | $ 125,500 | $ 134,257 |
Less: Distributed earnings allocated to nonvested restricted stock | (87) | (65) |
Less: Undistributed earnings allocated to nonvested restricted stock | (777) | (584) |
Numerator for basic earnings per share | 124,636 | 133,608 |
Add: Undistributed earnings allocated to nonvested restricted stock | 777 | 584 |
Less: Undistributed earnings reallocated to nonvested restricted stock | (754) | (566) |
Numerator for diluted earnings per share | $ 124,659 | $ 133,626 |
Denominator: | ||
Weighted average shares outstanding — basic (in shares) | 83,468 | 88,285 |
Effect of dilutive securities: Share-based payments (in shares) | 2,527 | 2,782 |
Weighted average shares outstanding — diluted (in shares) | 85,995 | 91,067 |
Basic earnings per share (in dollars per share) | $ 1.49 | $ 1.51 |
Diluted earnings per share (in dollars per share) | $ 1.45 | $ 1.47 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 |
Receivables (Details)
Receivables (Details) - Homebuilding - USD ($) $ in Thousands | Feb. 28, 2023 | Nov. 30, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Due from utility companies, improvement districts and municipalities | $ 196,692 | $ 181,443 |
Recoveries related to self-insurance and other legal claims | 84,800 | 76,581 |
Refundable deposits and bonds | 17,308 | 17,610 |
Other | 54,911 | 52,201 |
Subtotal | 353,711 | 327,835 |
Allowance for doubtful accounts | (5,144) | (5,068) |
Total | $ 348,567 | $ 322,767 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Feb. 28, 2023 | Nov. 30, 2022 |
Inventories | ||
Homes completed or under construction | $ 2,186,226 | $ 2,414,675 |
Land under development | 3,258,927 | 3,128,501 |
Total | 5,445,153 | 5,543,176 |
Land held for future development or sale | $ 25,300 | $ 21,600 |
Inventories (Schedule of Capita
Inventories (Schedule of Capitalized Interest Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Interest Costs | ||
Capitalized interest at beginning of period | $ 145,494 | $ 161,119 |
Interest incurred | 27,804 | 28,303 |
Interest amortized to construction and land costs | (26,136) | (29,773) |
Capitalized interest at end of period | $ 147,162 | $ 159,649 |
Inventory Impairments and Lan_2
Inventory Impairments and Land Option Contract Abandonments (Narratives) (Details) $ in Millions | 3 Months Ended | ||
Feb. 28, 2023 USD ($) lot community | Feb. 28, 2022 USD ($) | Nov. 30, 2022 USD ($) community | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Number of land parcels or communities evaluated for recoverability | community | 4 | 5 | |
Carrying value of communities of land parcels evaluated for impairment | $ 72 | $ 118.7 | |
Inventory impairment charges | 0 | $ 0 | |
Aggregate carrying value of inventory impacted by pretax, noncash inventory impairment charges | $ 91.9 | $ 102.9 | |
Number of communities and various other land parcels impacted by pretax, noncash inventory impairment charges | 7 | 8 | |
Land Option Contract Abandonment | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Land option abandonments | $ 5.3 | $ 0.2 |
Variable Interest Entities (Det
Variable Interest Entities (Details) $ in Thousands | Feb. 28, 2023 USD ($) joint_venture | Nov. 30, 2022 USD ($) joint_venture |
Variable Interest Entity [Line Items] | ||
Number of investments in unconsolidated joint ventures | joint_venture | 6 | 6 |
Cash Deposits | $ 41,465 | $ 51,850 |
Aggregate Purchase Price | 1,045,435 | 1,164,932 |
Pre-acquisition costs related to land option contracts and other similar contracts | 30,400 | 33,100 |
Increase in inventories and accrued expenses and other liabilities | $ 10,700 | $ 5,100 |
Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Number of investments in unconsolidated joint ventures | joint_venture | 1 | 1 |
Cash Deposits | $ 18,711 | $ 22,399 |
Aggregate Purchase Price | 618,939 | 635,502 |
Other land option contracts and other similar contracts | ||
Variable Interest Entity [Line Items] | ||
Cash Deposits | 22,754 | 29,451 |
Aggregate Purchase Price | $ 426,496 | $ 529,430 |
Investments in Unconsolidated_3
Investments in Unconsolidated Joint Ventures (Financial Information for Unconsolidated Joint Ventures) (Details) $ in Thousands | 3 Months Ended | ||||
Feb. 28, 2023 USD ($) home joint_venture | Feb. 28, 2022 USD ($) | Nov. 30, 2022 USD ($) joint_venture home | Nov. 30, 2021 USD ($) | ||
Statements of operations of unconsolidated joint venture | |||||
Net income | $ 125,500 | $ 134,257 | |||
Assets | |||||
Total assets | 6,514,101 | $ 6,651,930 | |||
Liabilities and equity | |||||
Equity | 3,695,463 | 3,134,316 | 3,660,795 | $ 3,019,475 | |
Total liabilities and stockholders’ equity | $ 6,514,101 | $ 6,651,930 | |||
Number of investments in unconsolidated joint ventures | joint_venture | 6 | 6 | |||
Number of joint ventures with funding commitments | joint_venture | 1 | 1 | |||
Number of other unconsolidated joint ventures with outstanding debt | home | 0 | 0 | |||
Financial services | |||||
Assets | |||||
Cash and cash equivalents | $ 700 | $ 1,681 | |||
Other assets | [1] | 29,010 | 27,698 | ||
Total assets | 60,937 | 59,532 | |||
Homebuilding | |||||
Assets | |||||
Cash and cash equivalents | 260,127 | 328,517 | |||
Other assets | 102,902 | 101,051 | |||
Total assets | 6,453,164 | 6,592,398 | |||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Unsecured revolving credit facility | |||||
Liabilities and equity | |||||
Line of credit facility, current borrowing capacity | $ 62,000 | ||||
Unsecured revolving credit facility, expiration date | Apr. 19, 2026 | ||||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Financial services | |||||
Statements of operations of unconsolidated joint venture | |||||
Revenues | $ 20,190 | 28,401 | |||
Other expense, net | (17,025) | (18,104) | |||
Net income | 3,165 | 10,297 | |||
Assets | |||||
Cash and cash equivalents | 31,890 | 28,120 | |||
Mortgage loans held for sale | 198,364 | 250,572 | |||
Other assets | 30,547 | 33,176 | |||
Total assets | 260,801 | 311,868 | |||
Liabilities and equity | |||||
Accounts payable and other liabilities | 12,770 | 15,590 | |||
Funding facilities | 191,533 | 242,944 | |||
Equity | 56,498 | 53,334 | |||
Total liabilities and stockholders’ equity | 260,801 | 311,868 | |||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Financial services | Interest Rate Lock Commitments | |||||
Liabilities and equity | |||||
Derivative asset, notional amount | 28,300 | 29,800 | |||
Change in fair value included in gain on sale of mortgage loans held for sale | 1,500 | 7,600 | |||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Homebuilding | |||||
Statements of operations of unconsolidated joint venture | |||||
Revenues | 0 | 2,850 | |||
Construction and land costs | 0 | (2,299) | |||
Other expense, net | (1,453) | (430) | |||
Net income | (1,453) | $ 121 | |||
Assets | |||||
Cash | 13,206 | 14,066 | |||
Receivables | 3,389 | 3,394 | |||
Inventories | 134,204 | 114,465 | |||
Other assets | 587 | 633 | |||
Total assets | 151,386 | 132,558 | |||
Liabilities and equity | |||||
Accounts payable and other liabilities | 8,357 | 8,369 | |||
Notes payable | 46,098 | 34,396 | |||
Equity | 96,931 | 89,793 | |||
Total liabilities and stockholders’ equity | $ 151,386 | $ 132,558 | |||
[1]Other assets at February 28, 2023 and November 30, 2022 included $28.9 million and $27.6 million, respectively, of contract assets for estimated future renewal commissions. |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Feb. 28, 2023 | Nov. 30, 2022 | |
Other Assets [Line Items] | |||
Lease right-of-use assets | [1] | $ 26,299 | $ 25,545 |
Homebuilding | |||
Other Assets [Line Items] | |||
Cash surrender value of corporate-owned life insurance contracts | 55,087 | 55,591 | |
Lease right-of-use assets | 26,255 | 25,469 | |
Prepaid expenses | 17,473 | 15,645 | |
Debt issuance costs associated with unsecured revolving credit facility, net | 4,087 | 4,346 | |
Total | $ 102,902 | $ 101,051 | |
[1]Consists of amounts within both our homebuilding and financial services operations. The financial services amounts were nominal as of each date. |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Feb. 28, 2023 | Nov. 30, 2022 | Feb. 28, 2022 | Nov. 30, 2021 | |
Lessee, Lease, Description [Line Items] | |||||
Self-insurance and other legal liabilities | $ 242,511 | $ 234,128 | |||
Employee compensation and related benefits | 106,330 | 182,443 | |||
Warranty liability | 101,238 | 101,890 | $ 97,466 | $ 96,153 | |
Customer deposits | 69,235 | 76,738 | |||
Federal and state taxes payable | 34,963 | 3,671 | |||
Lease liabilities | [1] | 28,490 | 27,580 | ||
Inventory-related obligations | [2] | 24,502 | 19,136 | ||
Accrued interest payable | 17,391 | 29,989 | |||
Real estate and business taxes | 13,754 | 17,557 | |||
Other | 40,243 | 43,925 | |||
Total | 678,611 | 736,971 | |||
Homebuilding | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease liabilities | 28,444 | 27,494 | |||
Total | $ 678,611 | $ 736,971 | |||
[1]Consists of amounts within both our homebuilding and financial services operations. The financial services amounts were nominal as of each date.[2]Represents liabilities for financing arrangements discussed in Note 8 – Variable Interest Entities, as well as liabilities for fixed or determinable amounts associated with tax increment financing entity (“TIFE”) assessments. As homes are delivered, our obligation to pay the remaining TIFE assessments associated with each underlying lot is transferred to the homebuyer. As such, these assessment obligations will be paid by us only to the extent we do not deliver homes on applicable lots before the related TIFE obligations mature. |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Leases [Abstract] | ||
Lease expense | $ 5.2 | $ 4.3 |
Short-term lease cost | $ 1.7 | $ 1.2 |
Leases (Lease Information) (Det
Leases (Lease Information) (Details) - USD ($) $ in Thousands | Feb. 28, 2023 | Nov. 30, 2022 | |
Lessee, Lease, Description [Line Items] | |||
Lease right-of-use assets | [1] | $ 26,299 | $ 25,545 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | |
Lease liabilities | [1] | $ 28,490 | $ 27,580 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities | Accrued Liabilities | |
[1]Consists of amounts within both our homebuilding and financial services operations. The financial services amounts were nominal as of each date. |
Income Taxes (Income Tax Expens
Income Taxes (Income Tax Expense and Effective Tax Rates) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||
Income tax expense | $ 36,700 | $ 43,800 |
Effective tax rate | 22.60% | 24.60% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Nov. 30, 2022 | |
Income Tax Disclosure [Abstract] | |||
Income tax credits and adjustments | $ 5,700,000 | $ 200,000 | |
Tax benefits from share-based compensation | 2,700,000 | 2,200,000 | |
Nondeductible expense | 3,100,000 | $ 1,700,000 | |
Deferred tax assets | 173,000,000 | $ 178,000,000 | |
Deferred tax assets, valuation allowance | 17,100,000 | $ 17,100,000 | |
Adjustments to deferred tax valuation allowance | $ 0 |
Notes Payable (Schedule Notes P
Notes Payable (Schedule Notes Payable) (Details) - USD ($) $ in Thousands | Feb. 28, 2023 | Nov. 30, 2022 |
Debt Instrument [Line Items] | ||
Notes payable | $ 1,788,850 | $ 1,838,511 |
Senior unsecured term loan due August 25, 2026 | Senior unsecured term loan due August 25, 2026 | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 357,653 | 357,485 |
Senior Notes | 6.875% Senior notes due June 15, 2027 | ||
Debt Instrument [Line Items] | ||
Stated interest rate percentage | 6.875% | |
Notes payable | $ 297,709 | 297,595 |
Senior Notes | 4.80% Senior notes due November 15, 2029 | ||
Debt Instrument [Line Items] | ||
Stated interest rate percentage | 4.80% | |
Notes payable | $ 297,314 | 297,230 |
Senior Notes | 7.25% Senior notes due July 15, 2030 | ||
Debt Instrument [Line Items] | ||
Stated interest rate percentage | 7.25% | |
Notes payable | $ 345,769 | 345,663 |
Senior Notes | 4.00% Senior notes due June 15, 2031 | ||
Debt Instrument [Line Items] | ||
Stated interest rate percentage | 4% | |
Notes payable | $ 385,882 | 385,778 |
Mortgages and land contracts due to land sellers and other loans | ||
Debt Instrument [Line Items] | ||
Notes payable | 4,523 | 4,760 |
Revolving Credit Facility | Unsecured revolving credit facility | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 100,000 | $ 150,000 |
Notes Payable (Narratives) (Det
Notes Payable (Narratives) (Details) - USD ($) | 3 Months Ended | ||||
Aug. 25, 2026 | Feb. 13, 2025 | Feb. 28, 2023 | Nov. 30, 2022 | Aug. 25, 2022 | |
Debt Instrument [Line Items] | |||||
Unamortized debt issuance costs, premiums and discounts | $ 15,700,000 | $ 16,200,000 | |||
Letters of credit outstanding | 29,800,000 | 43,000,000 | |||
Debt instrument, collateral amount | 28,400,000 | ||||
Long-Term Debt, Fiscal Year Maturity [Abstract] | |||||
Repayments of principal, 2023 | 3,100,000 | ||||
Repayments of principal, 2024 | 1,000,000 | ||||
Repayments of principal, 2025 | 400,000 | ||||
Repayments of principal, 2026 | 360,000,000 | ||||
Repayments of principal, 2027 | 400,000,000 | ||||
Repayments of principal, thereafter | $ 1,040,000,000 | ||||
Forecast | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, maturity date | Aug. 25, 2026 | ||||
Senior unsecured term loan due August 25, 2026 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 360,000,000 | ||||
Senior unsecured term loan due August 25, 2026 | Senior unsecured term loan due August 25, 2026 | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate (in percentage) | 6.10% | ||||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, current borrowing capacity | $ 1,090,000,000 | ||||
Unsecured revolving credit facility, expiration date | Feb. 18, 2027 | ||||
Unsecured revolving credit facility, maximum borrowing capacity | $ 1,290,000,000 | ||||
Credit facility, letters of credit outstanding | 100,000,000 | ||||
Unsecured revolving credit facility, remaining borrowing capacity | $ 983,400,000 | ||||
Weighted average interest rate (in percentage) | 5.90% | ||||
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 | ||||
Credit facility, letters of credit outstanding | 6,600,000 | ||||
Unsecured revolving credit facility, remaining borrowing capacity | 243,400,000 | ||||
LOC Facilities | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, current borrowing capacity | 75,000,000 | ||||
Letters of credit outstanding | $ 23,100,000 | $ 36,400,000 | |||
LOC Facilities | Forecast | |||||
Debt Instrument [Line Items] | |||||
Unsecured revolving credit facility, expiration date | Feb. 13, 2025 |
Fair Value Disclosures (Assets
Fair Value Disclosures (Assets Measured at Fair Value on Nonrecurring Basis) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Nov. 30, 2022 | ||
Assets measured at fair value on a nonrecurring basis | ||||
Inventory Impairment Charges | $ 0 | $ 0 | ||
Fair Value, Nonrecurring | Level 3 | ||||
Assets measured at fair value on a nonrecurring basis | ||||
Pre-Impairment Value | 0 | $ 65,372 | ||
Inventory Impairment Charges | 0 | (24,077) | ||
Fair Value | [1] | $ 0 | $ 41,295 | |
[1]Amounts represent the aggregate fair value for real estate assets impacted by inventory impairment charges during the applicable period, as of the date that the fair value measurements were made. The carrying value for these real estate assets may have subsequently increased or decreased from the fair value reflected due to activity that has occurred since the measurement date. |
Fair Value Disclosures (Fair Va
Fair Value Disclosures (Fair Value Hierarchy, Carrying Values, and Estimated Fair Values of Financial Instruments) (Details) - Level 2 - Senior Notes - USD ($) $ in Thousands | Feb. 28, 2023 | Nov. 30, 2022 | |
Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior notes | [1] | $ 1,326,674 | $ 1,326,266 |
Estimated Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior notes | $ 1,221,538 | $ 1,205,875 | |
[1]The carrying values for the senior notes, as presented, include unamortized debt issuance costs. Debt issuance costs are not factored into the estimated fair values of these notes. |
Commitments and Contingencies_2
Commitments and Contingencies (Narratives) (Details) $ in Thousands | 3 Months Ended | |
Feb. 28, 2023 USD ($) claim_filed home | Nov. 30, 2022 USD ($) | |
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 | $ 1,300,000 | $ 1,270,000 |
Letters of credit outstanding | 29,800 | 43,000 |
Cash deposits | 41,465 | 51,850 |
Aggregate purchase price of land | 1,045,435 | 1,164,932 |
LOC Facilities | ||
Loss Contingencies [Line Items] | ||
Letters of credit outstanding | $ 23,100 | 36,400 |
Expiration period | 1 year | |
Damages from Product Defects | ||
Loss Contingencies [Line Items] | ||
Minimum number of affected homes for construction defect claims | home | 2 | |
Warranty Obligations | ||
Loss Contingencies [Line Items] | ||
Structural warranty provided by company (in years) | 10 years | |
Self Insurance | ||
Loss Contingencies [Line Items] | ||
Reclassification of warranty recoveries to receivables | $ 31,500 | $ 32,700 |
Chapter 558 of the Florida Statutes | ||
Loss Contingencies [Line Items] | ||
Number of new claims filed | claim_filed | 480 | |
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 |
Commitments and Contingencies_3
Commitments and Contingencies (Changes in the Warranty and Self-Insurance Liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | ||
Changes in the Company's warranty liability | |||
Balance at beginning of period | $ 101,890 | $ 96,153 | |
Warranties issued | 7,990 | 7,890 | |
Payments | (8,642) | (6,577) | |
Balance at end of period | 101,238 | 97,466 | |
Movement In Self Insurance Reserve [Roll Forward] | |||
Balance at beginning of period | 175,977 | 189,131 | |
Self-insurance provided | 3,841 | 4,739 | |
Payments | (7,296) | (2,466) | |
Balance at end of period | 171,269 | 190,594 | |
Self Insurance | |||
Movement In Self Insurance Reserve [Roll Forward] | |||
Adjustments | [1] | $ (1,253) | $ (810) |
[1]Represents net changes in estimated probable recoveries related to self-insurance, which are recorded in receivables, to present our self-insurance liability on a gross basis. |
Legal Matters (Details)
Legal Matters (Details) | 3 Months Ended |
Feb. 28, 2023 | |
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 $1.0 million or is otherwise material to our consolidated financial statements |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Treasury stock, beginning balance (in shares) | 10,015,507 | |
Beginning balance | $ 3,660,795 | $ 3,019,475 |
Net income | 125,500 | 134,257 |
Dividends on common stock | $ (12,476) | (14,130) |
Employee stock options/other (in shares) | 71,980 | |
Employee stock options/other | $ 1,134 | |
Stock awards | 0 | 0 |
Stock-based compensation | 5,867 | 6,867 |
Stock repurchases | (75,609) | |
Tax payments associated with stock-based compensation awards | $ (9,748) | (12,153) |
Treasury stock, ending balance (in shares) | 11,586,694 | |
Ending balance | $ 3,695,463 | $ 3,134,316 |
Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | (100,711,000) | (100,711,000) |
Beginning balance | $ 100,711 | $ 100,711 |
Employee stock options/other (in shares) | 72,000 | |
Employee stock options/other | $ 72 | |
Stock awards | $ 0 | |
Ending balance (in shares) | (100,783,000) | (100,711,000) |
Ending balance | $ 100,783 | $ 100,711 |
Grantor Stock Ownership Trust | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 6,705,000 | 6,705,000 |
Beginning balance | $ (72,718) | $ (72,718) |
Ending balance (in shares) | 6,705,000 | 6,705,000 |
Ending balance | $ (72,718) | $ (72,718) |
Treasury Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Treasury stock, beginning balance (in shares) | (10,016,000) | (5,785,000) |
Beginning balance | $ (341,461) | $ (217,383) |
Stock awards (in shares) | 671,000 | 721,000 |
Stock awards | $ 23,285 | $ 27,249 |
Stock repurchases | $ (75,609) | |
Stock repurchases (in shares) | (1,965,442) | |
Tax payments associated with stock-based compensation awards (in shares) | (277,000) | (320,000) |
Tax payments associated with stock-based compensation awards | $ (9,748) | $ (12,153) |
Treasury stock, ending balance (in shares) | (11,587,000) | (5,384,000) |
Ending balance | $ (403,533) | $ (202,287) |
Paid-in Capital | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 836,260 | 848,620 |
Employee stock options/other | 1,062 | |
Stock awards | (23,285) | (27,249) |
Stock-based compensation | 5,867 | 6,867 |
Ending balance | 819,904 | 828,238 |
Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 3,143,578 | 2,379,364 |
Net income | 125,500 | 134,257 |
Dividends on common stock | (12,476) | (14,130) |
Ending balance | 3,256,602 | 2,499,491 |
Accumulated Other Comprehensive Loss | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (5,575) | (19,119) |
Ending balance | $ (5,575) | $ (19,119) |
Stockholders' Equity (Narrative
Stockholders' Equity (Narratives) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 36 Months Ended | |||
Feb. 28, 2023 | Feb. 28, 2022 | Nov. 30, 2022 | Feb. 24, 2023 | Apr. 07, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock, shares, issued (in shares) | 100,783,133 | 100,711,153 | |||
Payment, tax withholding, share-based payment arrangement | $ 9,748 | $ 12,153 | |||
Stock repurchased, value | $ 75,609 | ||||
Cash dividend declared per common share (in dollars per share) | $ 0.15 | $ 0.15 | |||
Dividend paid (in dollars per share) | $ 0.15 | $ 0.15 | |||
Treasury Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock repurchased (in shares) | 277,000 | 320,000 | |||
Stock repurchased (in shares) | 1,965,442 | ||||
Stock repurchased, value | $ 75,609 | ||||
Shares Withheld to Pay Taxes | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock repurchased (in shares) | 276,853 | ||||
Payment, tax withholding, share-based payment arrangement | $ 9,700 | ||||
April 2022 Stock Repurchase Program | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock repurchase program, remaining authorized repurchase amount | 75,000 | $ 150,000 | $ 300,000 | ||
Stock repurchased, value | $ 75,000 | ||||
Performance Shares | Homebuilding | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition | 3 years | ||||
Performance Shares | PSU 2019 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock, shares, issued (in shares) | 602,265 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narratives) (Details) - USD ($) | 3 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Nov. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options outstanding (in shares) | 1,602,413 | 1,674,393 | |
Options outstanding weighted average exercise price (in dollars per share) | $ 15.55 | $ 15.56 | |
Exercised (in shares) | 71,980 | ||
Exercised (in dollars per share) | $ 15.75 | ||
Aggregate intrinsic value of stock options outstanding | $ 31,600,000 | ||
Aggregate intrinsic value of stock options exercisable | $ 31,600,000 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average remaining contractual life of stock options outstanding | 2 years 7 months 6 days | ||
Weighted average remaining contractual life of stock options exercisable | 2 years 7 months 6 days | ||
Stock-based compensation expense | $ 0 | $ 0 | |
Restricted Stock and Performance Unit Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 5,900,000 | $ 6,900,000 |
Supplemental Disclosure to Co_3
Supplemental Disclosure to Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Feb. 28, 2023 | Feb. 28, 2022 | Nov. 30, 2022 | Nov. 30, 2021 | |
Summary of cash and cash equivalents at end of period: | ||||
Cash and cash equivalents | $ 260,827 | $ 242,737 | $ 330,198 | $ 292,136 |
Supplemental disclosures of cash flow information: | ||||
Interest paid, net of amounts capitalized | 12,598 | (7,606) | ||
Income taxes paid | 408 | 340 | ||
Supplemental disclosures of non-cash activities: | ||||
Increase (decrease) in consolidated inventories not owned | 5,596 | (14,623) | ||
Inspirada Builders LLC | ||||
Supplemental disclosures of non-cash activities: | ||||
Increase in inventories due to distributions of land and land development from an unconsolidated joint venture | 2,963 | 3,951 | ||
Homebuilding | ||||
Summary of cash and cash equivalents at end of period: | ||||
Cash and cash equivalents | 260,127 | 240,688 | ||
Financial services | ||||
Summary of cash and cash equivalents at end of period: | ||||
Cash and cash equivalents | $ 700 | $ 2,049 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ in Millions | Mar. 21, 2023 | Mar. 20, 2023 | Feb. 28, 2023 | Nov. 30, 2022 | Apr. 07, 2022 |
April 2022 Stock Repurchase Program | |||||
Subsequent Event [Line Items] | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 75 | $ 150 | $ 300 | ||
Subsequent Event | March 2023 Stock Repurchase Program | |||||
Subsequent Event [Line Items] | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 500 | ||||
Subsequent Event | April 2022 Stock Repurchase Program | |||||
Subsequent Event [Line Items] | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 75 |