Commitments and Contingent Liabilities

6 Months Ended

May 31, 2022

Commitments and Contingencies Disclosure [Abstract]

The Company is party to various claims, legal actions and complaints arising in the ordinary course of business. In the opinion of management, the disposition of these matters will not have a material adverse effect on the Company’s consolidated financial statements. From time to time, the Company is also a party to various lawsuits involving purchases and sales of real property. These lawsuits often include claims regarding representations and warranties made in connection with the transfer of properties and disputes regarding the obligation to purchase or sell properties.

The Company does not believe that the ultimate resolution of these claims or lawsuits will have a material adverse effect on its business or financial position. However, the financial effect of litigation concerning purchases and sales of property may depend upon the value of the subject property, which may have changed from the time the agreement for purchase or sale was entered into.

Leases

The Company has entered into agreements to lease certain office facilities and equipment under operating leases. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. Right-of-use ("ROU") assets and lease liabilities are recorded on the balance sheet for all leases, except leases with an initial term of 12 months or less. Many of the Company's leases include options to renew. The exercise of lease renewal options is at the Company's option and therefore renewal option payments have not been included in the ROU assets or lease liabilities. The following table includes additional information about the Company's leases:


(Dollars in thousands)	May 31, 2022			November 30, 2021
Right-of-use assets	$	149,772		155,616
Lease liabilities	158,573			163,513
Weighted-average remaining lease term (in years)	8.2			8.2
Weighted-average discount rate	2.9		%	2.8	%

Future minimum payments under the noncancellable leases in effect at May 31, 2022 were as follows:


(In thousands)	Lease Payments
2022	$	17,586
2023	30,964
2024	25,374
2025	21,181
2026	16,416
2027 and thereafter	66,826
Total future minimum lease payments (1)	$	178,347
Less: Interest (2)	19,774
Present value of lease liabilities (2)	$	158,573

(1)Total future minimum lease payments exclude variable lease costs of $17.0 million and short-term lease costs of $2.3 million.

(2)The Company's leases do not include a readily determinable implicit rate. As such, the Company has estimated the discount rate for these leases to determine the present value of lease payments at the lease commencement date or as of December 1, 2019, which was the effective date of ASU 2016-02. As of May 31, 2022, the weighted average remaining lease term and weighted average discount rate used in calculating the lease liabilities were 8.2 years and 2.9%, respectively. The Company recognized the lease liabilities on its condensed consolidated balance sheets within accounts payable or other liabilities of the respective segments.

The Company's rental expense and payments on lease liabilities were as follows:


	Six Months Ended
(In thousands)	May 31, 2022		May 31, 2021
Rental expense	$	50,698	41,662
Payment on lease liabilities	17,196		18,122

On occasion, the Company may sublease rented space which is no longer used for the Company's operations. For both the six months ended May 31, 2022 and 2021, the Company had an immaterial amount of sublease income.