Leases

3 Months Ended

Feb. 28, 2025

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, 2025 and February 29, 2024 was $4.8 million and $5.1 million, respectively, and included short-term lease costs of $1.5 million and $1.8 million, respectively. Variable lease costs and external sublease income for the three-month periods ended February 28, 2025 and February 29, 2024 were immaterial.

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


	February 28, 2025		November 30, 2024
Lease right-of-use assets	$	19,991	$	18,734
Lease liabilities	22,409		20,887

Lease right-of-use assets and lease liabilities are predominately within our homebuilding operations, with nominal amounts in our financial services operations.