Leases (Notes)

3 Months Ended

Feb. 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 on our consolidated balance sheets for leases with an expected term at the commencement date of more than 12 months. Lease expense is included in selling, general and administrative expenses in our consolidated statements of operations and includes costs for leases with terms of more than 12 months as well as short-term leases with terms of 12 months or less. Our total lease expense for each of the three-month periods ended February 28, 2022 and 2021 was $4.3 million, and included short-term lease costs of $1.2 million and $1.3 million, respectively. Variable lease costs and external sublease income for the three-month periods ended February 28, 2022 and 2021 were immaterial.

The following table presents our lease right-of-use assets and lease liabilities (dollars in thousands):


	February 28, 2022		November 30, 2021
Lease right-of-use assets (a)	$	26,485	$	27,693
Lease liabilities (b)	28,302		29,481

(a)Represents lease right-of-use assets within our homebuilding operations and financial services operations of $26.3 million and $.2 million, respectively, at February 28, 2022, and $27.5 million and $.2 million, respectively, at November 30, 2021.

(b)Represents lease liabilities within our homebuilding operations and financial services operations of $28.1 million and $.2 million, respectively, at February 28, 2022, and $29.3 million and $.2 million, respectively, at November 30, 2021.