We lease certain property and equipment for use in our operations. We recognize lease expense for these leases generally

on a straight-line basis over the lease term and combine lease and non-lease components for all leases. Lease right-of-use assets

and lease liabilities are recorded in our consolidated balance sheets for leases with an expected term at the commencement date

of more than 12 months. Some of our leases include one or more renewal options, the exercise of which is generally at our

discretion. Such options are excluded from the expected term of the lease unless we determine it is reasonably certain the

option will be exercised. Lease liabilities are equal to the present value of the remaining lease payments while the amount of

lease right-of-use assets is based on the lease liabilities, subject to adjustment, such as for lease incentives. Our leases do not

provide a readily determinable implicit interest rate; therefore, we estimate our incremental borrowing rate to calculate the

present value of remaining lease payments. In determining our incremental borrowing rate, we considered the lease term,

market interest rates, current interest rates on our senior notes and the effects of collateralization. Our lease population at

November 30, 2024 was comprised of operating leases where we are the lessee, primarily real estate leases for our corporate

offices, division offices and design studios, as well as certain equipment leases. Our lease agreements do not contain any

residual value guarantees or material restrictive covenants.

Lease expense is included in selling, general and administrative expenses in our consolidated statements of operations and

includes costs for leases with terms of more than 12 months as well as short-term leases with terms of 12 months or less. For

the years ended November 30, 2024, 2023 and 2022, our total lease expense was $20.2 million, $22.1 million and

$20.7 million, respectively, and included short-term lease costs of $7.0 million, $8.6 million and $7.7 million, respectively.

Variable lease costs and external sublease income for the years ended November 30, 2024, 2023 and 2022 were immaterial.

The following table presents our lease right-of-use assets, lease liabilities and the weighted-average remaining lease term

and weighted-average discount rate (incremental borrowing rate) used in calculating the lease liabilities (dollars in thousands):


	November 30,
	2024	2023
Lease right-of-use assets (a)	$18,734	$24,773
Lease liabilities (a)	20,887	26,581
Weighted-average remaining lease term	2.8 years	3.0 years
Weighted-average discount rate (incremental borrowing rate)	4.6%	4.8%

(a)Lease right-of-use assets and lease liabilities are predominantly within our homebuilding operations, with only nominal

The following table presents additional information about our leases (in thousands):


	Years Ended November 30,
	2024	2023
Lease right-of-use assets obtained in exchange for new lease liabilities	$4,780	$9,195
Cash payments on lease liabilities	12,594	12,592

As of November 30, 2024, the future minimum lease payments required under our leases are as follows (in thousands):


Years Ending November 30,
2025		$10,635
2026		4,989
2027		3,812
2028		2,379
2029		514
Thereafter		—
Total lease payments		22,329
Less: Interest		(1,442)
Present value of lease liabilities		$20,887