Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Nov. 30, 2018 | Dec. 31, 2018 | May 31, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | KB Home | ||
Entity Central Index Key | 795,266 | ||
Document Type | 10-K | ||
Document Period End Date | Nov. 30, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --11-30 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 2,532,566,398 | ||
Entity Common Stock Shares Outstanding | 86,925,192 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | ||
Total revenues | $ 1,348,609 | $ 1,225,347 | $ 1,101,423 | $ 871,623 | $ 1,403,138 | $ 1,144,001 | $ 1,002,794 | $ 818,596 | $ 4,547,002 | $ 4,368,529 | $ 3,594,646 | |
Homebuilding: | ||||||||||||
Revenues | 4,533,795 | 4,356,265 | 3,582,943 | |||||||||
Construction and land costs | (3,743,920) | (3,646,468) | (3,041,101) | |||||||||
Selling, general and administrative expenses | (444,154) | (426,394) | (389,441) | |||||||||
Operating income | 345,721 | 283,403 | 152,401 | |||||||||
Interest income | 3,514 | 1,240 | 529 | |||||||||
Interest expense | [1] | 0 | (6,307) | (5,900) | ||||||||
Equity in income (loss) of unconsolidated joint ventures | 9,367 | 2,825 | (5,601) | |||||||||
Financial services: | ||||||||||||
Revenues | 13,207 | 12,264 | 11,703 | |||||||||
Expenses | (3,844) | (3,430) | (3,817) | |||||||||
Pretax income (loss) | 128,936 | 114,676 | 78,308 | 46,045 | 137,346 | 79,208 | 51,982 | 21,459 | 367,965 | 289,995 | 149,315 | |
Income tax expense | (197,600) | (109,400) | (43,700) | |||||||||
Net income | $ 96,836 | $ 87,476 | $ 57,308 | $ (71,255) | $ 84,346 | $ 50,208 | $ 31,782 | $ 14,259 | $ 170,365 | $ 180,595 | $ 105,615 | |
Earnings per share: Basic (usd per share) | $ 1.09 | $ 0.99 | $ 0.65 | $ (0.82) | $ 0.97 | $ 0.58 | $ 0.37 | $ 0.17 | $ 1.93 | $ 2.09 | $ 1.23 | |
Earnings per share: Diluted (usd per share) | $ 0.96 | $ 0.87 | $ 0.57 | $ (0.82) | $ 0.84 | $ 0.51 | $ 0.33 | $ 0.15 | $ 1.71 | $ 1.85 | $ 1.12 | |
Weighted average shares outstanding: Basic (shares) | 87,773 | 85,842 | 85,706 | |||||||||
Weighted average shares outstanding: Diluted (shares) | 101,059 | 98,316 | 96,278 | |||||||||
Homebuilding [Member] | ||||||||||||
Homebuilding: | ||||||||||||
Equity in income (loss) of unconsolidated joint ventures | $ 2,066 | $ (1,409) | $ (2,181) | |||||||||
Financial services: | ||||||||||||
Pretax income (loss) | 351,301 | 276,927 | 144,849 | |||||||||
Financial services [Member] | ||||||||||||
Homebuilding: | ||||||||||||
Operating income | 9,363 | 8,834 | 7,886 | |||||||||
Equity in income (loss) of unconsolidated joint ventures | 7,301 | 4,234 | (3,420) | |||||||||
Financial services: | ||||||||||||
Pretax income (loss) | $ 16,664 | $ 13,068 | $ 4,466 | |||||||||
[1] | Interest incurred and interest expensed for the year ended November 30, 2017 included a charge of $5.7 million for the early extinguishment of debt. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 170,365 | $ 180,595 | $ 105,615 |
Net actuarial gain (loss) arising during the period | 8,216 | (3,143) | 468 |
Amortization of net actuarial loss | 336 | 142 | 79 |
Amortization of prior service cost | 1,556 | 1,556 | 1,556 |
Other comprehensive income (loss) before tax | 10,108 | (1,445) | 2,103 |
Income tax benefit (expense) related to items of other comprehensive income (loss) | (2,749) | 578 | (841) |
Other comprehensive income (loss), net of tax | 7,359 | (867) | 1,262 |
Comprehensive income | $ 177,724 | $ 179,728 | $ 106,877 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Nov. 30, 2018 | Nov. 30, 2017 | |
Assets | |||
Cash and cash equivalents | $ 575,119 | $ 720,861 | |
Receivables | 292,830 | 244,213 | |
Inventories | 3,582,839 | 3,263,386 | |
Investments in unconsolidated joint ventures | 61,960 | 64,794 | |
Deferred tax assets, net | 441,820 | 633,637 | |
Other assets | 107,383 | 102,498 | |
Total assets | 5,073,571 | 5,041,515 | |
Liabilities and stockholders' equity | |||
Accounts payable | 258,045 | 213,463 | |
Accrued expenses and other liabilities | 666,268 | 575,930 | |
Notes payable | 2,060,263 | 2,324,845 | |
Financial services | 1,495 | 966 | |
Stockholders' equity: | |||
Preferred stock — $1.00 par value; 10,000,000 shares authorized; none issued | 0 | 0 | |
Common stock — $1.00 par value; 290,000,000 shares authorized at November 30, 2018 and 2017; 119,195,914 and 117,945,525 shares issued at November 30, 2018 and 2017, respectively | 119,196 | 117,946 | |
Paid-in capital | 753,570 | 727,483 | |
Retained earnings | 1,897,168 | 1,735,695 | |
Accumulated other comprehensive loss | (9,565) | (16,924) | |
Grantor stock ownership trust, at cost: 8,157,235 and 8,897,954 shares at November 30, 2018 and 2017, respectively | (88,472) | (96,509) | |
Treasury stock, at cost: 24,113,487 and 22,021,062 shares at November 30, 2018 and 2017, respectively | (584,397) | (541,380) | |
Total stockholder's equity | 2,087,500 | 1,926,311 | |
Total liabilities and stockholders' equity | 5,073,571 | 5,041,515 | |
Homebuilding [Member] | |||
Assets | |||
Cash and cash equivalents | 574,359 | 720,630 | |
Total assets | 5,061,191 | 5,029,158 | |
Liabilities and stockholders' equity | |||
Total Homebuilding | 2,984,576 | 3,114,238 | |
Financial services [Member] | |||
Assets | |||
Cash and cash equivalents | 760 | 231 | |
Receivables | 2,885 | 1,724 | |
Investments in unconsolidated joint ventures | [1] | 8,594 | 10,340 |
Other assets | 141 | 62 | |
Total assets | $ 12,380 | $ 12,357 | |
[1] | In 2017, we made a $5.3 million capital contribution to KBHS and received a $5.0 million distribution from HCM. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Nov. 30, 2018 | Nov. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value, in dollars | $ 1 | $ 1 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value, in dollars | $ 1 | $ 1 |
Common stock, shares authorized | 290,000,000 | 290,000,000 |
Common stock, shares issued | 119,195,914 | 117,945,525 |
Grantor stock ownership trust | 8,157,235 | 8,897,954 |
Treasury stock, shares | 24,113,487 | 22,021,062 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Grantor Stock Ownership Trust | Treasury Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Stock Repurchased During Period, Shares | (8,373,000) | ||||||
Stock Repurchased During Period, Value | $ (85,938) | $ (85,938) | |||||
Beginning balance, shares at Nov. 30, 2015 | 115,548,000 | (10,136,000) | (13,137,000) | ||||
Beginning balance at Nov. 30, 2015 | 1,690,834 | $ 115,548 | $ (109,936) | $ (447,043) | $ 682,871 | $ 1,466,713 | $ (17,319) |
Net income | 105,615 | 105,615 | |||||
Other comprehensive income (loss), net of tax | 1,262 | 1,262 | |||||
Dividends on common stock | $ (8,586) | (8,586) | |||||
Employee stock options/other, shares | 551,898 | 552,000 | |||||
Employee stock options/other | $ 5,529 | $ 552 | 4,977 | ||||
Stock awards, shares | 124,000 | 704,000 | |||||
Stock awards | 0 | $ 124 | $ 7,636 | (7,760) | |||
Stock-based compensation | 16,850 | 16,850 | |||||
Stock repurchases, shares | (210,000) | ||||||
Tax payments associated with stock-based compensation awards | (2,421) | $ (2,421) | |||||
Ending balance, shares at Nov. 30, 2016 | 116,224,000 | (9,432,000) | (21,720,000) | ||||
Ending balance at Nov. 30, 2016 | 1,723,145 | $ 116,224 | $ (102,300) | $ (535,402) | 696,938 | 1,563,742 | (16,057) |
Net income | 180,595 | 180,595 | |||||
Other comprehensive income (loss), net of tax | (867) | (867) | |||||
Dividends on common stock | $ (8,642) | (8,642) | |||||
Employee stock options/other, shares | 1,650,360 | 1,652,000 | |||||
Employee stock options/other | $ 24,120 | $ 1,652 | 22,468 | ||||
Stock awards, shares | 70,000 | 534,000 | 28,000 | ||||
Stock awards | 0 | $ 70 | $ 5,791 | $ 695 | (6,556) | ||
Stock-based compensation | 14,633 | 14,633 | |||||
Stock repurchases, shares | (329,000) | ||||||
Tax payments associated with stock-based compensation awards | (6,673) | $ (6,673) | |||||
Ending balance, shares at Nov. 30, 2017 | 117,946,000 | (8,898,000) | (22,021,000) | ||||
Ending balance at Nov. 30, 2017 | 1,926,311 | $ 117,946 | $ (96,509) | $ (541,380) | 727,483 | 1,735,695 | (16,924) |
Stock Repurchased During Period, Shares | (1,806,000) | ||||||
Stock Repurchased During Period, Value | (35,039) | $ (35,039) | |||||
Net income | 170,365 | 170,365 | |||||
Other comprehensive income (loss), net of tax | 7,359 | 7,359 | |||||
Dividends on common stock | $ (8,892) | (8,892) | |||||
Employee stock options/other, shares | 1,195,926 | 1,196,000 | |||||
Employee stock options/other | $ 20,011 | $ 1,196 | 18,815 | ||||
Stock awards, shares | 54,000 | 741,000 | 48,000 | ||||
Stock awards | 0 | $ 54 | $ 8,037 | $ 498 | (8,589) | ||
Stock-based compensation | 15,861 | 15,861 | |||||
Stock repurchases, shares | (334,000) | ||||||
Tax payments associated with stock-based compensation awards | (8,476) | $ (8,476) | |||||
Ending balance, shares at Nov. 30, 2018 | 119,196,000 | (8,157,000) | (24,113,000) | ||||
Ending balance at Nov. 30, 2018 | $ 2,087,500 | $ 119,196 | $ (88,472) | $ (584,397) | $ 753,570 | $ 1,897,168 | $ (9,565) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 170,365 | $ 180,595 | $ 105,615 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in (income) loss of unconsolidated joint ventures | (9,367) | (2,825) | 5,601 |
Proceeds from Equity Method Investment, Distribution | 9,047 | 0 | 0 |
Amortization of discounts and issuance costs | 6,232 | 6,573 | 7,576 |
Depreciation and amortization | 2,530 | 2,791 | 3,637 |
Deferred income taxes | 191,817 | 105,348 | 43,211 |
Loss on early extinguishment of debt | 0 | 5,685 | 0 |
Excess tax benefits from stock-based compensation | 0 | (958) | (186) |
Stock-based compensation | 15,861 | 14,633 | 16,850 |
Inventory impairments and land option contract abandonments | 28,994 | 25,232 | 52,812 |
Changes in assets and liabilities: | |||
Receivables | (49,778) | (12,508) | 18,965 |
Inventories | (270,126) | 126,085 | (98,321) |
Accounts payable, accrued expenses and other liabilities | 126,710 | 66,594 | 32,723 |
Other, net | (773) | (4,026) | 172 |
Net cash provided by operating activities | 221,512 | 513,219 | 188,655 |
Cash flows from investing activities: | |||
Contributions to unconsolidated joint ventures | (22,671) | (18,694) | (5,602) |
Return of investments in unconsolidated joint ventures | 9,934 | 11,035 | 4,307 |
Purchases of property and equipment, net | (7,370) | (8,085) | (4,784) |
Net cash used in investing activities | (20,107) | (15,744) | (6,079) |
Cash flows from financing activities: | |||
Change in restricted cash | 0 | 0 | 9,344 |
Repayment of senior notes | (300,000) | (270,326) | 0 |
Borrowings under revolving credit facility | 70,000 | 0 | 0 |
Repayments under revolving credit facility | (70,000) | 0 | 0 |
Issuance costs for unsecured revolving credit facility | 0 | (1,711) | 0 |
Payments on mortgages and land contracts due to land sellers and other loans | (14,751) | (106,382) | (67,845) |
Issuance of common stock under employee stock plans | 20,011 | 23,162 | 5,343 |
Excess tax benefits from stock-based compensation | 0 | 958 | 186 |
Stock repurchases | (35,039) | 0 | (85,938) |
Tax payments associated with stock-based compensation awards | (8,476) | (6,673) | (2,421) |
Payments of cash dividends | (8,892) | (8,642) | (8,586) |
Net cash used in financing activities | (347,147) | (369,614) | (149,917) |
Net increase (decrease) in cash and cash equivalents | (145,742) | 127,861 | 32,659 |
Cash and cash equivalents at beginning of year | 720,861 | 593,000 | 560,341 |
Cash and cash equivalents at end of year | $ 575,119 | $ 720,861 | $ 593,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Nov. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Operations. KB Home is a builder of attached and detached single-family residential homes, townhomes and condominiums. As of November 30, 2018 , we conducted ongoing operations in Arizona, California, Colorado, Florida, Nevada, North Carolina, Texas and Washington. We also offer various insurance products to our homebuyers in the same markets where we build homes, and provide title services in the majority of our markets located within our Central and Southeast homebuilding reporting segments. Since June 2017, we have been providing mortgage banking services, including mortgage loan originations, to our homebuyers indirectly through KBHS, an unconsolidated joint venture we formed with Stearns in the 2016 fourth quarter. Until October 2016, we provided mortgage banking services, including mortgage loan originations, to our homebuyers indirectly through HCM, an unconsolidated joint venture we formed with Nationstar. Basis of Presentation. Our consolidated financial statements have been prepared in accordance with GAAP and include our accounts and those of the consolidated subsidiaries in which we have a controlling financial interest. All intercompany balances and transactions have been eliminated in consolidation. Investments in unconsolidated joint ventures in which we have less than a controlling financial interest are accounted for using the equity method. 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 $385.2 million at November 30, 2018 and $481.1 million at November 30, 2017 . At November 30, 2018 and 2017, the majority of our cash and cash equivalents was invested in interest-bearing bank deposit accounts. Receivables. Receivables are evaluated for collectibility at least quarterly, and allowances for potential losses are established or maintained on applicable receivables when collection is considered doubtful, taking into account historical experience, prevailing economic conditions and other relevant information. Property and Equipment and Depreciation. Property and equipment are recorded at cost and are depreciated over their estimated useful lives, which generally range from two to 10 years, using the straight-line method. Repair and maintenance costs are expensed as incurred. Property and equipment totaled $24.3 million , net of accumulated depreciation of $20.1 million , at November 30, 2018 , and $19.5 million , net of accumulated depreciation of $19.0 million , at November 30, 2017 . Depreciation expense totaled $2.5 million in 2018 , $2.8 million in 2017 and $3.6 million in 2016 . Homebuilding Operations. Revenues from housing and other real estate sales are recognized when sales are closed and title passes to the homebuyer. Sales are closed when all of the following conditions are met: a sale is consummated, a sufficient down payment is received, the earnings process is complete and the collection of any remaining receivables is reasonably assured. Concurrent with the recognition of revenues in our consolidated statements of operations, sales incentives in the form of price concessions on the selling price of a home are recorded as a reduction of revenues, while the costs of sales incentives in the form of free or discounted products or services to homebuyers, including option upgrades and closing cost allowances used to cover a portion of the fees and costs charged to a homebuyer, are reflected as construction and land costs. Construction and land costs are comprised of direct and allocated costs, including estimated future costs for the limited warranty we provide on our homes, and certain amenities within a community. Land acquisition, land development and other common costs are generally allocated on a relative fair value basis to the homes or lots within the applicable community or land parcel. Land acquisition and land development costs include related interest and real estate taxes. H ousing and land inventories are stated at cost, unless the carrying value is determined not to be recoverable, in which case the affected inventories are written down to fair value or fair value less associated costs to sell. Real estate assets, such as our housing and land inventories, are tested for recoverability whenever events or changes in circumstances indicate that their carrying value may not be recoverable. Recoverability is measured by comparing the carrying value of an asset to the undiscounted future net cash flows expected to be generated by the asset. These impairment evaluations are significantly impacted by estimates for the amounts and timing of future revenues, costs and expenses, and other factors. If the carrying value of a real estate asset is determined not to be recoverable, the impairment charge to be recognized is measured by the amount by which the carrying value of the affected asset exceeds its estimated fair value. For land held for sale, if the fair value less associated costs to sell exceeds the asset’s carrying value, no impairment charge is recognized. Capitalized Interest. 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). For land held for future development or sale, applicable interest is expensed as incurred. Fair Value Measurements. Fair value measurements are used for inventories on a nonrecurring basis when events and circumstances indicate that their carrying value is not recoverable. For these real estate assets, fair value is determined based on the estimated future net cash flows discounted for inherent risk associated with each such asset, or other valuation techniques. Our financial instruments consist of cash and cash equivalents, senior notes, convertible senior notes, and mortgages and land contracts due to land sellers and other loans. Fair value measurements of financial instruments are determined by various market data and other valuation techniques as appropriate. When available, we use quoted market prices in active markets to determine fair value. Financial Services Operations. Our financial services reporting segment generates revenues primarily from insurance commissions and title services. Revenues from insurance commissions and title services are recognized when policies are issued, which generally occurs at the time each applicable home is closed. Revenues from insurance commissions are also recognized when homeowners renew their policies. Warranty Costs. We provide a limited warranty on all of our homes. 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 and adjust the amount as necessary based on our assessment. Our warranty liability is presented on a gross basis for all years 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. Self-Insurance. We self-insure a portion of our overall risk through the use of a captive insurance subsidiary. We record liabilities based on the estimated costs required to cover reported claims, claims incurred but not yet reported, and claim adjustment expenses. These estimated costs are based on an actuarial analysis of our historical claims and expense data, as well as industry data. Our self-insurance liability is presented on a gross basis for all years without consideration of insurance recoveries and amounts we have paid on behalf of and expect to recover from other parties, if any . Estimates of insurance 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. Community Start-up Costs . Costs incurred to construct model home complexes for our new communities are capitalized to inventories. Community sales offices and other marketing- and model-related costs for model home complexes are amortized through construction and land costs with each home delivered in the applicable community. The costs of constructing model homes are recognized as construction and land costs when model homes are delivered to homebuyers. Costs and expenses associated with the administration of new community openings, such as collateral materials and broker outreach events, are expensed to selling, general and administrative expenses as incurred. Advertising Costs. We expense advertising costs as incurred. We incurred advertising costs of $37.3 million in 2018 , $34.4 million in 2017 and $32.7 million in 2016 . Legal Fees. Legal fees associated with litigation and similar proceedings that are not expected to provide a benefit in future periods are generally expensed as incurred. Legal fees associated with land acquisition and development and other activities that are expected to provide a benefit in future periods are capitalized to inventories in our consolidated balance sheets as incurred. We expensed legal fees of $12.4 million in 2018 , $14.0 million in 2017 and $13.6 million in 2016 . Stock-Based Compensation. We measure and recognize compensation expense associated with our grant of equity-based awards at an amount equal to the fair value of share-based payments granted under compensation arrangements over the vesting period. We estimate the fair value of stock options and Director Plan SARs granted using the Black-Scholes option-pricing model with assumptions based primarily on historical data. Income Taxes. The provision for, or benefit from, income taxes is calculated using the asset and liability method, under which deferred tax assets and liabilities are recorded based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are evaluated on a quarterly basis to determine if adjustments to the valuation allowance are required. This evaluation is 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. 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 in our consolidated balance sheets depends on applicable income tax rates. Accumulated Other Comprehensive Loss. The accumulated balances of other comprehensive loss in the consolidated balance sheets as of November 30, 2018 and 2017 were comprised solely of adjustments recorded directly to accumulated other comprehensive loss related to our benefit plan obligations. Such adjustments are made annually as of November 30, when our benefit plan obligations are remeasured. 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 November 30, 2018 , 2017 or 2016 . Adoption of New Accounting Pronouncements . In March 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-09, which simplified several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of excess tax benefits on the statement of cash flows, treatment of forfeitures, and statutory withholding requirements. We adopted this guidance effective December 1, 2017. ASU 2016-09 requires excess tax benefits and deficiencies from stock-based compensation awards to be recognized prospectively in our consolidated statements of operations as a component of income tax expense, whereas these items were previously recorded in paid-in capital in our consolidated balance sheets. This guidance also requires excess tax benefits to be classified within operating activities in the consolidated statements of cash flows. We previously recognized excess tax benefits as a cash inflow from financing activities and a corresponding cash outflow from operating activities. In connection with the adoption of this guidance, we elected to continue to estimate forfeitures in calculating our stock-based compensation expense, rather than account for forfeitures as they occur. The impact of recognizing excess tax benefits and deficiencies in our consolidated statements of operations resulted in reductions in our income tax expense of $1.0 million for 2018. The remaining aspects of adopting this guidance did not have a material impact on our consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business” (“ASU 2017-01”). ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 is effective for annual and interim periods beginning after December 15, 2017 (with early adoption permitted). Our early adoption of this guidance in the 2018 third quarter did not have a material impact on our consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 supersedes the revenue guidance in Accounting Standards Codification Topic 605, “Revenue Recognition,” and most industry-specific revenue and cost guidance in the accounting standards codification, including some cost guidance related to construction-type and production-type contracts. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a principles-based, five-step model to be applied to contracts with customers in determining the timing and amount of revenue to recognize: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract, if applicable; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The guidance requires more management judgment and estimates than currently applicable guidance to determine the appropriate revenue recognition, including with respect to identifying the performance obligations in the contract, estimating the amount of variable consideration, if any, to include in the transaction price, and allocating the transaction price to the applicable performance obligations, among other things. ASU 2014-09 and its related amendments (collectively, “ASC 606”) are effective for us beginning December 1, 2018. We intend to adopt ASC 606 under the modified retrospective method applied to contracts that are not complete as of the date of adoption. As a result, we expect to record a cumulative effect adjustment to increase beginning retained earnings as of December 1, 2018 by approximately $12 million , net of tax. This cumulative effect adjustment is primarily related to the recognition of a contract asset for estimated future renewal commissions related to existing insurance policies as of December 1, 2018, partly offset by the impact from changes in the recognition of certain community sales office and other marketing- and model home-related costs, as described below. We do not expect the adoption of ASC 606 to have a material impact on our recognition of homebuilding revenues in our consolidated financial statements. The primary impacts to our consolidated financial statements are expected to be the following: • Within our homebuilding operations, ASC 606 will impact the classification and timing of recognition in our consolidated financial statements of certain community sales office and other marketing- and model home-related costs, which we currently capitalize to inventories and amortize through construction and land costs with each home delivered in a community. Under ASC 606, these costs will be capitalized to property and equipment and depreciated to selling, general and administrative expenses, or will be expensed as incurred. Upon adopting ASC 606, we will reclassify certain of these community sales office and other marketing- and model home-related costs from inventories to property and equipment in our consolidated financial statements. The change in the classification and timing of these costs will also result in lower construction and land costs, and higher selling, general and administrative expenses, as compared to amounts reported under the existing guidance. In addition, under ASC 606, forfeited customer deposits, which are currently reflected as other income, will be included in revenues. • Within our financial services operations, ASC 606 will impact the timing of recognition of insurance commissions for insurance policy renewals. We currently recognize insurance commissions for renewals as revenue when policies are renewed by homeowners. Under ASC 606, insurance commissions for estimated future policy renewals will be recognized as revenue when the customer executes an initial insurance policy with the insurance carrier. Upon adopting ASC 606, we will record a contract asset for the estimated future renewal commissions related to existing policies as of December 1, 2018. While individual financial statement line items may be affected, we currently believe the adoption of ASC 606 will not have a material impact on our consolidated net income on an ongoing basis. In addition, we do not expect significant changes to our business processes or internal control over financial reporting as a result of the adoption. We are also continuing to evaluate the impact that adopting this guidance may have on other aspects of our business. Our assessment of the impacts of ASC 606 will be finalized in the 2019 first quarter. As a result of adopting this new standard, there will be significant changes to our disclosures based on the additional requirements prescribed by ASC 606. These new disclosure requirements include information regarding disaggregation of revenue; contract balances, including changes during the reporting period; performance obligations; significant judgments; and assets recognized to obtain or fulfill a contract. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). ASU 2016-02 will require lessees to recognize on the balance sheet the assets and liabilities for the rights and obligations created by leases. Under this guidance, a lessee will be required to recognize right-of-use assets and liabilities for leases with original lease terms of more than 12 months. Lessor accounting remains substantially similar to current GAAP. In addition, disclosures of leasing activities are to be expanded to include qualitative along with specific quantitative information. ASU 2016-02 is effective for us beginning December 1, 2019 (with early adoption permitted). Originally, entities were required to adopt ASU 2016-02 using a modified retrospective transition method. However, in July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements,” which provides entities with an additional transition method. Under ASU 2018-11, entities have the option of recognizing the cumulative effect of applying the new standard as an adjustment to beginning retained earnings in the year of adoption while continuing to present all prior periods under previous lease accounting guidance. In July 2018, the FASB also issued Accounting Standards Update No. 2018-10, “Codification Improvements to Topic 842, Leases” (“ASU 2018-10”), which clarifies how to apply certain aspects of ASU 2016-02. We expect to adopt ASU 2016-02, ASU 2018-10 and ASU 2018-11 beginning December 1, 2019. We are currently evaluating the potential impact of adopting this guidance on our consolidated financial statements. In February 2018, the FASB issued Accounting Standards Update No. 2018-02, “Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”), which allows a reclassification from accumulated other comprehensive income (loss) to retained earnings for stranded tax effects resulting from the TCJA, and requires certain disclosures about stranded tax effects. ASU 2018-02 is effective for us beginning December 1, 2019 (with early adoption permitted), and shall be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the corporate income tax rate in the TCJA is recognized. We are currently evaluating the potential impact of adopting this guidance on our consolidated financial statements. Reclassifications. Certain amounts in our consolidated financial statements of prior years have been reclassified to conform to the current period presentation. |
Segment Information
Segment Information | 12 Months Ended |
Nov. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information An operating segment is defined as a component of an enterprise for which separate financial information is available and for which segment results are evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. We have identified each of our homebuilding divisions as an operating segment. Our homebuilding operating segments have been aggregated into four homebuilding reporting segments based primarily on similarities in economic and geographic characteristics, product types, regulatory environments, methods used to sell and construct homes and land acquisition characteristics. We also have one financial services reporting segment. Management evaluates segment performance primarily based on segment pretax results. As of November 30, 2018 , our homebuilding reporting segments conducted ongoing operations in the following states: West Coast: California 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. In the 2018 third quarter, we expanded into the state of Washington with our entrance into the Seattle market. In 2016, we announced that we had begun a transition out of the Metro Washington, D.C. market which was substantially completed in 2017. Our operations in the Metro Washington, D.C. market consisted of communities in Maryland and Virginia, which were included in our Southeast homebuilding reporting segment, and represented 2% of our consolidated homebuilding revenues for the year ended November 30, 2016. As described in Note 7 – Inventory Impairments and Land Option Contract Abandonments, we recorded inventory impairment and land option contract abandonment charges related to this transition during the year ended November 30, 2016. 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 Central and Southeast homebuilding reporting segments. This segment earns revenues primarily from insurance commissions and from the provision of title services. Until October 2016, we provided mortgage banking services, including mortgage loan originations, to our homebuyers indirectly through HCM, an unconsolidated joint venture we formed with Nationstar. We have a 49.9% ownership interest and Nationstar has a 50.1% ownership interest in HCM, with Nationstar providing management oversight of HCM’s operations. In the 2016 fourth quarter, we and Nationstar began the process to wind down HCM and transfer HCM’s operations and certain assets to Stearns. In 2016, we and Stearns formed KBHS, an unconsolidated mortgage banking joint venture, to offer mortgage banking services, including mortgage loan originations, to our homebuyers. We and Stearns each have a 50.0% ownership interest, with Stearns providing management oversight of KBHS’ operations. KBHS was operational in all of our served markets as of June 2017. KBHS did not have an impact on our consolidated statement of operations for the year ended November 30, 2016. Our homebuyers may select any lender of their choice to obtain mortgage financing for the purchase of their home. The financial services reporting segment is separately reported in our consolidated financial statements. Corporate and other is a non-operating segment that develops and oversees the implementation of company-wide strategic initiatives and provides support to our reporting segments by centralizing certain administrative functions. Corporate management is responsible for, among other things, evaluating and selecting the geographic markets in which we operate, consistent with our overall business strategy; allocating capital resources to markets for land acquisition and development activities; making major personnel decisions related to employee compensation and benefits; and monitoring the financial and operational performance of our divisions. Corporate and other includes general and administrative expenses related to operating our corporate headquarters. A portion of the expenses incurred by Corporate and other is allocated to our homebuilding reporting segments. Our reporting segments follow the same accounting policies used for our consolidated financial statements as described in Note 1 – Summary of Significant Accounting Policies. 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): Years Ended November 30, 2018 2017 2016 Revenues: West Coast $ 2,085,328 $ 2,186,411 $ 1,638,078 Southwest 707,075 533,052 447,473 Central 1,239,305 1,188,839 1,018,535 Southeast 502,087 447,963 478,857 Total $ 4,533,795 $ 4,356,265 $ 3,582,943 Pretax income (loss): West Coast $ 240,337 $ 217,649 $ 148,014 Southwest 91,017 45,540 38,807 Central 117,609 116,098 85,924 Southeast 7,624 (509 ) (29,385 ) Corporate and other (105,286 ) (101,851 ) (98,511 ) Total $ 351,301 $ 276,927 $ 144,849 Equity in income (loss) of unconsolidated joint ventures: West Coast $ (966 ) $ (1,770 ) $ (1,561 ) Southwest 3,033 362 (618 ) Central — — — Southeast (1 ) (1 ) (2 ) Total $ 2,066 $ (1,409 ) $ (2,181 ) Inventory impairment charges: West Coast $ 19,169 $ 13,482 $ 8,209 Southwest — 3,445 3,191 Central 1,463 — 10,633 Southeast 5,472 3,678 27,547 Total $ 26,104 $ 20,605 $ 49,580 Land option contract abandonment charges: West Coast $ 1,212 $ 3,225 $ 769 Southwest 432 — 253 Central 1,095 846 460 Southeast 151 556 1,750 Total $ 2,890 $ 4,627 $ 3,232 November 30, 2018 2017 Inventories: Homes under construction West Coast $ 514,099 $ 638,639 Southwest 173,036 179,240 Central 312,366 320,205 Southeast 125,651 98,764 Subtotal 1,125,152 1,236,848 Land under development West Coast 1,059,432 723,761 Southwest 404,201 309,672 Central 543,472 435,373 Southeast 212,831 182,533 Subtotal 2,219,936 1,651,339 Land held for future development or sale West Coast 154,462 233,188 Southwest 21,137 62,475 Central 9,346 12,654 Southeast 52,806 66,882 Subtotal 237,751 375,199 Total $ 3,582,839 $ 3,263,386 Investments in unconsolidated joint ventures: West Coast $ 56,128 $ 53,506 Southwest 3,327 8,784 Central — — Southeast 2,505 2,504 Total $ 61,960 $ 64,794 Assets: West Coast $ 1,880,516 $ 1,747,786 Southwest 631,509 586,666 Central 1,017,490 901,516 Southeast 463,224 359,307 Corporate and other 1,068,452 1,433,883 Total $ 5,061,191 $ 5,029,158 |
Financial Services
Financial Services | 12 Months Ended |
Nov. 30, 2018 | |
Segment Reporting [Abstract] | |
Financial Services | Financial Services The following tables present financial information relating to our financial services reporting segment (in thousands): Years Ended November 30, 2018 2017 2016 Revenues Insurance commissions $ 7,535 $ 6,991 $ 6,728 Title services 5,672 5,268 4,975 Interest income — 5 — Total 13,207 12,264 11,703 Expenses General and administrative (3,844 ) (3,430 ) (3,817 ) Operating income 9,363 8,834 7,886 Equity in income (loss) of unconsolidated joint ventures 7,301 4,234 (3,420 ) Pretax income $ 16,664 $ 13,068 $ 4,466 November 30, 2018 2017 Assets Cash and cash equivalents $ 760 $ 231 Receivables 2,885 1,724 Investments in unconsolidated joint ventures (a) 8,594 10,340 Other assets 141 62 Total assets $ 12,380 $ 12,357 Liabilities Accounts payable and accrued expenses $ 1,495 $ 966 Total liabilities $ 1,495 $ 966 (a) In 2017, we made a $5.3 million capital contribution to KBHS and received a $5.0 million distribution from HCM. The equity in loss of unconsolidated joint ventures in 2016 reflected fewer loan originations and higher overhead costs as well as the wind down of HCM, and included an increase in HCM’s reserves for potential future losses on certain loans it originated. While we believe we will not need to record any additional charges, it is reasonably possible that we may incur further losses with respect to our equity interest in future periods as the wind down of HCM is completed. Although we are currently unable to estimate the amount or range of such losses, if any, we believe they would not have a material impact on our consolidated financial statements . Although KB HOME Mortgage Company, which is 100% owned by us, ceased originating and selling mortgage loans in September 2005, it may be required to repurchase, or provide indemnification with respect to, an individual loan that it funded on or before August 31, 2005 and sold to an investor if the representations or warranties that it made in connection with the sale of the loan are breached, in the event of an early payment default, if the loan does not comply with the underwriting standards or other requirements of the ultimate investor or an applicable insurer, or due to a delinquency or other matters arising in connection with the loan. KB HOME Mortgage Company was not required to repurchase any loans in the past few years. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Nov. 30, 2018 | |
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): Years Ended November 30, 2018 2017 2016 Numerator: Net income $ 170,365 $ 180,595 $ 105,615 Less: Distributed earnings allocated to nonvested restricted stock (51 ) (56 ) (45 ) Less: Undistributed earnings allocated to nonvested restricted stock (927 ) (1,121 ) (508 ) Numerator for basic earnings per share 169,387 179,418 105,062 Effect of dilutive securities: Interest expense and amortization of debt issuance costs associated with convertible senior notes, net of taxes 3,190 2,654 2,667 Add: Undistributed earnings allocated to nonvested restricted stock 927 1,121 508 Less: Undistributed earnings reallocated to nonvested restricted stock (805 ) (979 ) (453 ) Numerator for diluted earnings per share $ 172,699 $ 182,214 $ 107,784 Denominator: Weighted average shares outstanding — basic 87,773 85,842 85,706 Effect of dilutive securities: Share-based payments 4,884 4,072 2,170 Convertible senior notes 8,402 8,402 8,402 Weighted average shares outstanding — diluted 101,059 98,316 96,278 Basic earnings per share $ 1.93 $ 2.09 $ 1.23 Diluted earnings per share $ 1.71 $ 1.85 $ 1.12 As discussed in Note 13 – Notes Payable, in 2013, we issued the 1.375% Convertible Senior Notes due 2019 that, from issuance, have been convertible into shares of our common stock at a conversion rate of 36.5297 shares for each $1,000 principal amount of the notes. Outstanding stock options to purchase .8 million , 1.6 million and 7.3 million shares of common stock were excluded from the diluted earnings per share calculations for 2018 , 2017 and 2016 , respectively, because the effect of their inclusion in each case would be antidilutive. In 2017, the decrease in anti-dilutive shares and the increase in dilutive shares, each as compared to 2016, were primarily the result of a year-over-year increase in the average price of our common stock. Contingently issuable shares associated with outstanding PSUs were not included in the basic earnings per share calculations for the periods presented, as the applicable vesting conditions had not been satisfied. |
Receivables
Receivables | 12 Months Ended |
Nov. 30, 2018 | |
Receivables [Abstract] | |
Receivables | Receivables Receivables consisted of the following (in thousands): November 30, 2018 2017 Recoveries related to self-insurance and other legal claims $ 138,261 $ 91,763 Due from utility companies, improvement districts and municipalities (a) 113,434 113,744 Refundable deposits and bonds 14,115 13,829 Recoveries related to warranty and other claims 4,750 4,073 Other 33,775 33,797 Subtotal 304,335 257,206 Allowance for doubtful accounts (11,505 ) (12,993 ) Total $ 292,830 $ 244,213 (a) These receivables typically relate to infrastructure improvements we make with respect to our communities. We are generally reimbursed for the cost of such improvements when they are accepted by the utility company, improvement district or municipality, or after certain events occur, depending on the terms of the applicable agreements. These events may include, but are not limited to, the connection of utilities or the issuance of bonds by the respective improvement districts or municipalities. |
Inventories
Inventories | 12 Months Ended |
Nov. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in thousands): November 30, 2018 2017 Homes under construction $ 1,125,152 $ 1,236,848 Land under development 2,219,936 1,651,339 Land held for future development or sale (a) 237,751 375,199 Total $ 3,582,839 $ 3,263,386 (a) Land held for sale totaled $9.8 million at November 30, 2018 and $21.8 million at November 30, 2017 . Homes under construction is comprised of costs associated with homes in various stages of construction and includes direct construction and related land acquisition and land development costs. Land under development primarily consists of land acquisition and land development costs. Land development costs also include capitalized interest and real estate taxes. When home construction begins, the associated land acquisition and land development costs are included in homes under construction. Land held for future development principally reflects land acquisition and land development costs related to land where development activity has been suspended or has not yet begun but is expected to occur in the future. These assets held for future development are located in various submarkets where conditions do not presently support further investment or development, or are subject to a building permit moratorium or regulatory restrictions, or are portions of larger land parcels that we plan to build out over several years and/or that have not yet been entitled. We may also suspend development activity if we believe it will result in greater returns and/or maximize the economic performance of a particular community by delaying improvements for a period of time to, for instance, allow earlier phases of a long-term, multi-phase community or a neighboring community to generate or extend sales momentum, or for market conditions to improve. In some instances, we may activate or resume development activity for such inventory to accelerate sales and/or our return on investment. We have activated assets previously held for future development in certain markets in 2018, 2017 and 2016 as part of our Returns-Focused Growth Plan. Land is generally considered held for sale when management commits to a plan to sell the land; the land is available for immediate sale in its present condition; an active program to locate a buyer and other actions required to complete the plan to sell have been initiated; the sale of the land is expected to be completed within one year ; the land is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and it is unlikely that the plan to sell will be withdrawn or that significant changes to the plan will be made. Interest and real estate taxes are not capitalized on land held for future development or sale. In 2016, we changed our strategy related to certain land parcels that were either held for future development or under development and decided to monetize these assets through land sales, rather than build and sell homes on these parcels as previously intended. These parcels, which were classified as land held for sale at November 30, 2016, included land in excess of our near-term requirements; land where we believed the necessary incremental investment in development was not justified; land located in areas outside of our served markets; and/or land entitled for certain product types that were not aligned with our primary product offerings. The majority of these land parcels were located in our Southeast homebuilding reporting segment. As discussed in Note 7 – Inventory Impairments and Land Option Contract Abandonments, we recognized inventory impairment charges in 2016 to reduce the carrying values of these land parcels to their estimated fair values, less associated costs to sell. During 2018 and 2017, we changed our strategy related to certain of these land parcels located in improving housing markets where we determined the incremental investment in development to be justified and decided to build and sell homes on these parcels. Such land parcels were classified as either land under development or land held for future development (in the case of later phases of a long-term, multi-phase community) as of November 30, 2018 and 2017. Land held for sale as of November 30, 2018 and 2017 consisted of land parcels that either have been contracted to sell or that we are continuing to actively market and/or intend to sell within one year . Our interest costs were as follows (in thousands): Years Ended November 30, 2018 2017 2016 Capitalized interest at beginning of year $ 262,191 $ 306,723 $ 288,442 Interest incurred (a) 149,698 177,171 185,466 Interest expensed (a) — (6,307 ) (5,900 ) Interest amortized to construction and land costs (b) (202,760 ) (215,396 ) (161,285 ) Capitalized interest at end of year (c) $ 209,129 $ 262,191 $ 306,723 (a) Interest incurred and interest expensed for the year ended November 30, 2017 included a charge of $5.7 million for the early extinguishment of debt. (b) Interest amortized to construction and land costs for the years ended November 30, 2018 , 2017 and 2016 included $4.8 million , $4.9 million and $.7 million , respectively, related to land sales during the periods. (c) Capitalized interest amounts presented in the table reflect the gross amount of capitalized interest, as inventory impairment charges recognized, if any, are not generally allocated to specific components of inventory. |
Inventory Impairments and Land
Inventory Impairments and Land Option Contract Abandonments | 12 Months Ended |
Nov. 30, 2018 | |
Inventory Impairments and Land Option Contract Abandonments [Abstract] | |
Inventory Impairments and Land Option Contract Abandonments | Inventory Impairments and Land Option Contract Abandonments E ach community or land parcel in our owned inventory is assessed to determine if indicators of potential impairment exist. Impairment indicators are assessed separately for each community or land parcel on a quarterly basis and include, but are not limited to, the following: significant decreases in net orders, average selling prices, volume of homes delivered, gross profit margins on homes delivered or projected gross profit margins on homes in backlog or future deliveries; significant increases in budgeted land development and home construction costs or cancellation rates; or projected losses on expected future land sales. If indicators of potential impairment exist for a community or land parcel, the identified asset is evaluated for recoverability. We evaluated 57 , 51 and 68 communities or land parcels for recoverability during the years ended November 30, 2018 , 2017 and 2016 , respectively. The carrying value of those communities or land parcels evaluated during the years ended November 30, 2018 , 2017 and 2016 was $356.1 million , $456.9 million and $423.1 million , respectively. The communities or land parcels evaluated during 2018 and 2017 included certain communities or land parcels previously held for future development that were reactivated as part of our efforts to improve our asset efficiency under our Returns-Focused Growth Plan. As impairment indicators are assessed on a quarterly basis, some of the communities or land parcels evaluated during these years were evaluated in more than one quarterly period. Communities or land parcels evaluated for recoverability in more than one quarterly period are counted only once for each applicable year. In some cases, we have recognized inventory impairment charges for particular communities or land parcels in multiple years. Inventory impairment charges are included in construction and land costs in our consolidated statements of operations. When an indicator of potential impairment is identified for a community or land parcel, we test the asset for recoverability by comparing the carrying value of the asset to the undiscounted future net cash flows expected to be generated by the asset. The undiscounted future net cash flows are impacted by then-current conditions and trends in the market in which the asset is located as well as factors known to us at the time the cash flows are calculated. These factors may include recent trends in our orders, backlog, cancellation rates and volume of homes delivered, as well as our expectations related to the following: product offerings; market supply and demand, including estimated average selling prices and related price appreciation; and land development, home construction and overhead costs to be incurred and related cost inflation. With respect to the years ended November 30, 2018 and 2017 , these expectations reflected our experience that, notwithstanding fluctuations in our company-wide net orders, backlog levels, homes delivered and housing gross profit margin during those periods, on a year-over-year basis, and the wind down of our Metro Washington, D.C. operations during 2017, conditions in the markets where assessed assets were located were generally stable or improved, with no significant deterioration identified or projected, as to revenue and cost drivers that would prevent or otherwise impact recoverability. Based on this experience, and taking into account the generally healthy conditions in many of our served markets for new home sales, our inventory assessments as of November 30, 2018 considered an expected steady overall sales pace and average selling price performance for 2019 and beyond relative to the pace and performance in recent quarters. Our inventory is assessed for potential impairment on a quarterly basis, and the assumptions used are reviewed and adjusted, as necessary, to reflect the market conditions and trends and our expectations at the time each assessment is performed. Given the inherent challenges and uncertainties in forecasting future results, our inventory assessments at the time they are made take into consideration whether a community or land parcel is active, meaning whether it is open for sales and/or undergoing development, or whether it is being held for future development or held for sale. Due to the short-term nature of active communities and land held for sale, as compared to land held for future development, our inventory assessments generally assume the continuation of then-current market conditions, subject to identifying information suggesting significant sustained changes in such conditions. Our assessments of active communities, at the time made, generally anticipate net orders, average selling prices, volume of homes delivered and costs for land development and home construction to continue at or near then-current levels through the particular asset’s estimated remaining life. Inventory assessments for our land held for future development consider then-current market conditions as well as subjective forecasts regarding the timing and costs of land development and home construction and related cost inflation; the product(s) to be offered; and the net orders, volume of homes delivered, and selling prices and related price appreciation of the offered product(s) when an associated community is anticipated to open for sales. We evaluate various factors to develop these forecasts, including the availability of and demand for homes and finished lots within the relevant marketplace; historical, current and expected future sales trends for the marketplace; and third-party data, if available. The estimates, expectations and assumptions used in each of our inventory assessments are specific to each community or land parcel based on what we believe are reasonable forecasts for their particular performance, and may vary among communities or land parcels and may vary over time. 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. Inputs used in our calculation of estimated discounted future net cash flows are specific to each affected real estate asset and are based on our expectations for each such asset as of the applicable measurement date, including, among others, expectations related to average selling prices and volume of homes delivered. The discount rates we used were impacted by one or more of the following at the time the calculation was made: the risk-free rate of return; expected risk premium based on estimated land development, home construction and delivery timelines; market risk from potential future price erosion; cost uncertainty due to land development or home construction cost increases; and other risks specific to the asset or conditions in the market in which the asset is located. 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. The following table summarizes ranges for significant quantitative unobservable inputs we utilized in our fair value measurements with respect to impaired communities, other than land held for sale, written down to fair value during the years presented: Years Ended November 30, Unobservable Input (a) 2018 2017 2016 Average selling price $291,300 - $774,100 $207,100 - $1,576,500 $216,200 - $977,400 Deliveries per month 2 - 6 1 - 4 1 - 4 Discount rate 17% - 19% 17% - 18% 17% - 20% (a) The ranges of inputs used in each period primarily reflect differences between the housing markets where each impacted community is located, rather than fluctuations in prevailing market conditions. Based on the results of our evaluations, we recognized inventory impairment charges of $26.1 million in 2018 related to 13 communities with a post-impairment fair value of $44.1 million . In 2017, we recognized inventory impairment charges of $20.6 million related to 10 communities or land parcels with a post-impairment fair value of $38.4 million . The impairment charges in 2018 and 2017 reflected our decisions to make changes in our operational strategies aimed at more quickly monetizing our investment in certain communities by accelerating the overall pace for selling, building and delivering homes therein, including communities on land previously held for future development. If we change our strategy for any given asset, it is possible that we may recognize additional inventory impairment charges. In 2016, of the total inventory impairment charges, $36.7 million related to certain land previously held for future development that we decided to monetize through land sales as discussed in Note 6 – Inventories; then-planned land sales in connection with the wind down of our Metro Washington, D.C. operations; and the sales of our last remaining land parcels in the Rio Grande Valley area of Texas. The remaining $12.9 million of inventory impairment charges reflected our decisions to reactivate certain communities in California, Arizona and Florida previously held for future development, and to accelerate the monetization of our investment in certain other communities in California and Metro Washington, D.C. primarily through lowering selling prices. As of November 30, 2018 , the aggregate carrying value of our inventory that had been impacted by inventory impairment charges was $156.1 million , representing 22 communities and various other land parcels. As of November 30, 2017 , the aggregate carrying value of our inventory that had been impacted by inventory impairment charges was $177.8 million , representing 24 communities and various other land parcels. Our inventory controlled under land option contracts and other similar contracts is assessed to determine whether it continues to meet our investment return standards. Assessments are made separately for each optioned land parcel on a quarterly basis and are affected by the following factors relative to the market in which the asset is located, among others: current and/or anticipated net orders, average selling prices and volume of homes delivered; estimated land development and home construction costs; and projected profitability on expected future housing or land sales. 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 $2.9 million in 2018, $4.6 million in 2017 and $3.2 million in 2016. Of the land option contract abandonment charges recognized for 2016, $1.4 million related to the wind down of our Metro Washington, D.C. operations. Land option contract abandonment charges are included in construction and land costs in our consolidated statements of operations. The estimated remaining life of each community or land parcel in our inventory depends on various factors, such as the total number of lots remaining; the expected timeline to acquire and entitle land and develop lots to build homes; the anticipated future net order and cancellation rates; and the expected timeline to build and deliver homes sold. While it is difficult to determine a precise timeframe for any particular inventory asset, based on current market conditions and expected delivery timelines, we estimate our inventory assets’ remaining operating lives to range generally from one year to in excess of ten years, and expect to realize, on an overall basis, the majority of our inventory balance as of November 30, 2018 within five years. 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 | 12 Months Ended |
Nov. 30, 2018 | |
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 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 November 30, 2018 and 2017 was a VIE, but we were not the primary beneficiary of the VIE. All of our joint ventures at November 30, 2018 and 2017 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. The use of these contracts generally allows us to reduce the market risks associated with direct land ownership and development, and reduce our capital and financial commitments, including interest and other carrying costs. 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. In determining whether we are the primary beneficiary, we consider, among other things, whether we have the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance. Such activities would include, among other things, determining or limiting the scope or purpose of the VIE, selling or transferring property owned or controlled by the VIE, or arranging financing for the VIE. As a result of our analyses, we determined that as of November 30, 2018 and 2017 , 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): November 30, 2018 November 30, 2017 Cash Deposits Aggregate Purchase Price Cash Deposits Aggregate Purchase Price Unconsolidated VIEs $ 26,542 $ 784,334 $ 43,171 $ 653,858 Other land option contracts and other similar contracts 27,288 586,904 21,531 440,229 Total $ 53,830 $ 1,371,238 $ 64,702 $ 1,094,087 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 $46.9 million at November 30, 2018 and $26.8 million at November 30, 2017 . These pre-acquisition costs and cash deposits were included in inventories in our consolidated balance sheets. 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). In making this determination with respect to a land option contract, we consider the non-refundable deposit(s) we have made and any non-reimbursable expenditures we have incurred for land improvement activities or other items up to the assessment date; additional costs associated with abandoning the contract; and our commitments, if any, to incur non-reimbursable costs associated with the contract. As a result of our evaluations of land option contracts and other similar contracts for financing arrangements, we recorded inventories in our consolidated balance sheets, with a corresponding increase to accrued expenses and other liabilities, of $21.8 million at November 30, 2018 and $5.7 million at November 30, 2017 . |
Investments in Unconsolidated J
Investments in Unconsolidated Joint Ventures | 12 Months Ended |
Nov. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Joint Ventures | Investments in Unconsolidated Joint Ventures 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. Our partners in these unconsolidated joint ventures are unrelated homebuilders, and/or land developers and other real estate entities, or commercial enterprises. These investments are designed primarily to reduce market and development risks and to increase the number of lots we own or control. In some instances, participating in unconsolidated joint ventures has enabled us to acquire and develop land that we might not otherwise have had access to due to a project’s size, financing needs, duration of development or other circumstances. While we consider our participation in unconsolidated joint ventures as potentially beneficial to our homebuilding activities, we do not view such participation as essential. We typically have obtained rights to acquire portions of the land held by the unconsolidated joint ventures in which we currently participate. When an unconsolidated joint venture sells land to our homebuilding operations, we defer recognition of our share of such unconsolidated joint venture’s earnings (losses) until a home sale is closed and title passes to a homebuyer, at which time we account for those earnings (losses) as a reduction (increase) to the cost of purchasing the land from the unconsolidated joint venture. We defer recognition of our share of such unconsolidated joint venture losses only to the extent profits are to be generated from the sale of the home to a homebuyer. We share in the earnings (losses) of these unconsolidated joint ventures generally in accordance with our respective equity interests. In some instances, we recognize earnings (losses) related to our investment in an unconsolidated joint venture that differ from our equity interest in the unconsolidated joint venture. This typically arises from our deferral of the unconsolidated joint venture’s earnings (losses) from land sales to us, or other items. The following table presents combined condensed information from the statements of operations of our unconsolidated joint ventures (in thousands): Years Ended November 30, 2018 2017 2016 Revenues $ 59,418 $ 47,431 $ 46,389 Construction and land costs (46,288 ) (47,459 ) (50,566 ) Other expenses, net (2,674 ) (4,749 ) (4,465 ) Income (loss) $ 10,456 $ (4,777 ) $ (8,642 ) For the years ended November 30, 2018 , 2017 and 2016, combined revenues and construction and land costs were generated primarily from land sales. The year-over-year growth in combined revenues and income for 2018 mainly reflected the sale of land by an unconsolidated joint venture in Arizona, and contingent consideration (profit participation revenues) earned by an unconsolidated joint venture in California. The following table presents combined condensed balance sheet information for our unconsolidated joint ventures (in thousands): November 30, 2018 2017 Assets Cash $ 18,567 $ 21,193 Receivables 9 688 Inventories 131,074 145,519 Other assets 521 1,398 Total assets $ 150,171 $ 168,798 Liabilities and equity Accounts payable and other liabilities $ 11,374 $ 25,426 Notes payable (a) 17,956 20,040 Equity 120,841 123,332 Total liabilities and equity $ 150,171 $ 168,798 (a) As of November 30, 2017, two of our unconsolidated joint ventures had separate construction loan agreements with different third-party lenders to finance their respective land development activities, with the outstanding debt secured by the corresponding underlying property and related project assets and non-recourse to us. The secured debt of one of these unconsolidated joint ventures was repaid in August 2018 upon maturity. All of the outstanding secured debt at November 30, 2018 is scheduled to mature in February 2020. None of our other unconsolidated joint ventures had outstanding debt at November 30, 2018 or 2017 . The following table presents additional information relating to our investments in unconsolidated joint ventures (dollars in thousands): November 30, 2018 2017 Number of investments in unconsolidated joint ventures 6 7 Investments in unconsolidated joint ventures $ 61,960 $ 64,794 Number of unconsolidated joint venture lots controlled under land option contracts and other similar contracts 36 377 We and our partner in the unconsolidated joint venture that has the above-noted outstanding construction loan agreement at November 30, 2018 provide certain guarantees and indemnities to the lender, including a guaranty to complete the construction of improvements for the project; a guaranty against losses the lender suffers due to certain bad acts or failures to act by the unconsolidated joint venture or its partners; and an indemnity of the lender from environmental issues. In each instance, our actual responsibility under the foregoing guaranty and indemnity obligations is limited to our pro rata interest in the unconsolidated joint venture. We do not have a guaranty or any other obligation to repay or to support the value of the collateral underlying the outstanding secured debt. However, various financial and non-financial covenants apply with respect to the outstanding secured debt and 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, if and as may be applicable. As of the date of this report, we were in compliance with the applicable terms of our relevant covenants with respect to the construction loan agreement. We do not believe that our existing exposure under our guaranty and indemnity obligations related to the outstanding secured debt is material to our consolidated financial statements. We are committed to purchase all 36 unconsolidated joint venture lots controlled under land option contracts and other similar contracts at November 30, 2018 from one unconsolidated joint venture. The purchases will be made in quarterly takedowns over the next two years for an aggregate purchase price of $16.9 million under agreements that we entered into with the unconsolidated joint venture in 2016. |
Other Assets
Other Assets | 12 Months Ended |
Nov. 30, 2018 | |
Other Assets [Abstract] | |
Other Assets | Other Assets Other assets consisted of the following (in thousands): November 30, 2018 2017 Cash surrender value of corporate-owned life insurance contracts $ 73,721 $ 75,236 Property and equipment, net 24,283 19,521 Prepaid expenses 7,647 5,360 Debt issuance costs associated with unsecured revolving credit facility 1,732 2,381 Total $ 107,383 $ 102,498 |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Nov. 30, 2018 | |
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): November 30, 2018 2017 Self-insurance and other legal liabilities $ 283,651 $ 222,808 Employee compensation and related benefits 148,549 143,992 Warranty liability 82,490 69,798 Inventory-related obligations (a) 40,892 30,108 Accrued interest payable 31,180 39,518 Customer deposits 19,491 16,863 Real estate and business taxes 16,639 16,874 Other 43,376 35,969 Total $ 666,268 $ 575,930 (a) Represents liabilities for financing arrangements discussed in Note 8 – Variable Interest Entities, as well as liabilities for fixed or determinable amounts associated with 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. |
Income Taxes
Income Taxes | 12 Months Ended |
Nov. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes TCJA. On December 22, 2017, the TCJA was enacted into law. The TCJA made significant changes to U.S. tax laws, including, but not limited to, the following: (a) reducing the federal corporate income tax rate from 35% to 21%, effective January 1, 2018; (b) eliminating the federal corporate alternative minimum tax (“AMT”) and changing how existing AMT credits can be realized; and (c) eliminating several business deductions and credits, including deductions for certain executive compensation in excess of $1 million . Overall, we expect the TCJA to favorably impact our effective tax rate, net income and cash flows in future periods. In December 2017, the SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the income tax effects of the TCJA. SAB 118 provides a measurement period that should not extend beyond one year from the TCJA enactment date for companies to complete the accounting relating to the TCJA under Accounting Standards Codification Topic 740, “Income Taxes” (“ASC 740”). In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the TCJA for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for TCJA-related income tax effects is incomplete, but the company is able to determine a reasonable estimate, it must record a provisional estimate in its financial statements. If a company cannot determine a provisional estimate to be included in its financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the TCJA. We have completed our analysis of the TCJA’s income tax effects. In total, we recorded a non-cash charge of $112.5 million to income tax expense for TCJA-related impacts, comprised of provisional estimates of $111.2 million recorded in the 2018 first quarter and an additional $1.3 million charge when our analysis was completed in the 2018 fourth quarter. In accordance with SAB 118, the TCJA-related income tax effects that we initially reported as provisional estimates were refined as additional analysis was performed. In addition, the provisional amounts were affected by our results for the year ended November 30, 2018 as well as additional regulatory guidance/interpretations issued by the Internal Revenue Service, changes in accounting standards, or federal or state legislative actions. The following TCJA-related impacts were reflected in our consolidated financial statements for the year ended November 30, 2018 : • We recorded a non-cash charge of $106.7 million in income tax expense due to the accounting re-measurement of our deferred tax assets based on the lower federal corporate income tax rate under the TCJA. • We have AMT credit carryforwards that do not expire and can be used to offset regular income taxes in future years. Under the TCJA, we may claim a refund of 50% of our remaining AMT credits in 2019, 2020, and 2021 to the extent the credits exceed regular tax for any such year. Any AMT credits remaining after our fiscal year ending November 30, 2021 will be refunded in 2022. We currently estimate our refund will total approximately $50.0 million . As the refund is subject to a sequestration reduction rate of approximately 6.6% , we established a federal deferred tax valuation allowance of $3.3 million for 2018. Our accounting policy regarding the balance sheet presentation of the AMT credits is to maintain the balance in deferred tax assets until a tax return is filed claiming a refund of a portion of the credit, at which time such amount will be presented in receivables. • We recorded a non-cash charge of $2.5 million for disallowed executive compensation due to the TCJA’s eliminating the deductibility of certain performance-based compensation. The TCJA also modified who is a covered employee with respect to the deduction limitation, and provided a transition rule that would preserve the deductibility of certain 2018 performance-based compensation payable under written binding contracts in place prior to November 2, 2017 that have not been modified in any material respect. Income Tax Expense. The components of the income tax expense in our consolidated statements of operations are as follows (in thousands): Federal State Total 2018 Current $ (3,600 ) $ (4,800 ) $ (8,400 ) Deferred (170,700 ) (18,500 ) (189,200 ) Income tax expense $ (174,300 ) $ (23,300 ) $ (197,600 ) 2017 Current $ (2,800 ) $ (3,000 ) $ (5,800 ) Deferred (86,300 ) (17,300 ) (103,600 ) Income tax expense $ (89,100 ) $ (20,300 ) $ (109,400 ) 2016 Current $ (1,900 ) $ (1,000 ) $ (2,900 ) Deferred (28,700 ) (12,100 ) (40,800 ) Income tax expense $ (30,600 ) $ (13,100 ) $ (43,700 ) Our effective tax rates were 53.7% for 2018, 37.7% for 2017 and 29.3% for 2016. Our income tax expense and effective tax rate for 2018 included the above-described charge of $112.5 million for TCJA-related impacts; the favorable effect of the reduction in the federal corporate income tax rate under the TCJA; the favorable net impact of federal energy tax credits of $10.7 million that we earned from building energy efficient homes; a $2.1 million net tax benefit from a reduction in our deferred tax asset valuation allowance; and excess tax benefits of $1.0 million related to stock-based compensation due to our adoption of ASU 2016-09, as further described in Note 1 – Summary of Significant Accounting Policies. The TCJA requires us to use a blended federal tax rate for our 2018 fiscal year by applying a prorated percentage of days before and after the January 1, 2018 effective date. As a result, our 2018 annual federal statutory tax rate has been reduced to approximately 22% . The federal energy tax credits for 2018 resulted from legislation enacted on February 9, 2018, which among other things, extended the availability of a business tax credit for building new energy efficient homes through December 31, 2017. Prior to this legislation, the tax credit expired on December 31, 2016. In 2017 and 2016, our income tax expense and effective tax rates reflected the favorable net impact of $4.9 million and $15.2 million , respectively, of federal energy tax credits we earned from building energy-efficient homes. Most of the federal energy tax credits for 2017 and 2016 resulted from legislation enacted in 2015 that extended the availability of a business tax credit for building new energy-efficient homes through December 31, 2016. Deferred Tax Assets, Net. Deferred income taxes result from temporary differences in the financial and tax basis of assets and liabilities. Significant components of our deferred tax liabilities and assets are as follows (in thousands): November 30, 2018 2017 Deferred tax liabilities: Capitalized expenses $ 51,660 $ 98,147 State taxes 31,246 59,174 Other 225 313 Total 83,131 157,634 Deferred tax assets: NOLs from 2006 through 2018 121,432 236,273 Tax credits 231,100 208,841 Inventory impairment and land option contract abandonment charges 67,416 139,737 Employee benefits 45,802 100,200 Warranty, legal and other accruals 43,213 60,238 Capitalized expenses 27,894 39,195 Partnerships and joint ventures 6,368 14,784 Depreciation and amortization 1,869 7,333 Other 3,457 8,270 Total 548,551 814,871 Valuation allowance (23,600 ) (23,600 ) Total 524,951 791,271 Deferred tax assets, net $ 441,820 $ 633,637 Reconciliation of Expected Income Tax Expense. The income tax expense computed at the statutory U.S. federal income tax rate and the income tax expense provided in our consolidated statements of operations differ as follows (dollars in thousands): Years Ended November 30, 2018 2017 2016 $ % $ % $ % Income tax expense computed at statutory rate $ (81,689 ) (22.2 )% $ (101,499 ) (35.0 )% $ (52,260 ) (35.0 )% Tax credits 14,177 3.9 6,227 2.2 4,447 3.0 Valuation allowance for deferred tax assets 2,000 .5 1,200 .4 12,982 8.7 Depreciation and amortization 1,223 .3 362 .1 1,842 1.2 State taxes, net of federal income tax benefit (20,155 ) (5.5 ) (14,450 ) (4.9 ) (7,511 ) (5.0 ) TCJA adjustment (112,458 ) (30.5 ) — — — — NOL reconciliation — — (2,210 ) (.8 ) (3,691 ) (2.5 ) Other, net (698 ) (.2 ) 970 .3 491 .3 Income tax expense $ (197,600 ) (53.7 )% $ (109,400 ) (37.7 )% $ (43,700 ) (29.3 )% 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. In our evaluation, we give more significant weight to evidence that is objective in nature as compared to subjective evidence. Also, more significant weight is given to evidence that directly relates to our then-current financial performance as compared to indirect or less current evidence. 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 $465.4 million at November 30, 2018 , after the above-described accounting re-measurement, and $657.2 million at November 30, 2017 were partially offset in each year by valuation allowances of $23.6 million . The deferred tax asset valuation allowances at November 30, 2018 and 2017 were primarily related to certain state NOLs that had not met the “more likely than not” realization standard at those dates. As of November 30, 2018 , we would need to generate approximately $1.6 billion of pretax income in future periods before 2038 to realize our deferred tax assets. Based on the evaluation of our deferred tax assets as of November 30, 2018 , we determined that most of our deferred tax assets would be realized. In 2018, we established a federal deferred tax asset valuation allowance of $3.3 million due to the sequestration of refundable AMT credits, which was offset by a reduction of $3.3 million in our state deferred tax asset valuation allowance primarily to account for state NOLs that met the “more likely than not” standard or have expired. The net tax benefit related to the reduction in the state deferred tax asset valuation allowance was $2.1 million . In 2017, we reduced our valuation allowance by $1.2 million primarily to account for state NOLs that met the “more likely than not” realization standard. In 2016, we reduced our valuation allowance by $13.0 million , which reflected the expiration of foreign tax credits and the release of a valuation allowance associated with state NOLs that met the “more likely than not” realization standard, partly offset by the establishment of a valuation allowance for state NOLs related to the wind down of our Metro Washington, D.C. operations. 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. The majority of the tax benefits associated with our NOLs can be carried forward for 20 years and applied to offset future taxable income. Our federal NOL carryforwards of $5.6 million , if not utilized, will begin to expire in 2032 through 2033 . Depending on their applicable statutory period, the state NOL carryforwards of $115.8 million , if not utilized, will begin to expire between 2019 and 2038 . State NOL carryforwards of $1.2 million and $.5 million expired in 2018 and 2016, respectively. In addition, $128.5 million of our tax credits, if not utilized, will begin to expire in 2026 through 2037 . Included in the $128.5 million are $3.2 million of investment tax credits, of which $2.4 million and $.8 million will expire in 2026 and 2027 , respectively. Unrecognized Tax Benefits. Gross unrecognized tax benefits are the differences between a tax position taken or expected to be taken in a tax return, and the benefit recognized for accounting purposes. A reconciliation of the beginning and ending balances of gross unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands): Years Ended November 30, 2018 2017 2016 Balance at beginning of year $ 56 $ 56 $ 56 Reductions due to lapse of statute of limitations (56 ) — — Balance at end of year $ — $ 56 $ 56 W e recognize accrued interest and penalties related to unrecognized tax benefits in our consolidated financial statements as a component of the provision for income taxes. As of November 30, 2018 , we had no gross unrecognized tax benefits. As of both November 30, 2017 and 2016 , our gross unrecognized tax benefits (including interest and penalties) totaled $.1 million . Our liabilities for unrecognized tax benefits at November 30, 2018 and 2017 are included in accrued expenses and other liabilities in our consolidated balance sheets. As of November 30, 2018 and 2017 , there were no tax positions for which the ultimate deductibility is highly certain but the timing of such deductibility is uncertain. Our total accrued interest and penalties related to unrecognized income tax benefits was zero at both November 30, 2018 and 2017 . Because of the impact of deferred tax accounting, other than interest and penalties, the disallowance of the shorter deductibility period would not affect our annual effective tax rate, but would accelerate the payment of cash to a tax authority to an earlier period. The fiscal years ending 2015 and later remain open to federal examinations, while 2014 and later remain open to state examinations. The benefits of our deferred tax assets, including our NOLs, built-in losses and tax credits would be reduced or potentially eliminated if we experienced an “ownership change” under Section 382. Based on our analysis performed as of November 30, 2018 , we do not believe that we have experienced an ownership change as defined by Section 382, and, therefore, the NOLs, built-in losses and tax credits we have generated should not be subject to a Section 382 limitation as of this reporting date. |
Notes Payable
Notes Payable | 12 Months Ended |
Nov. 30, 2018 | |
Debt Disclosure [Abstract] | |
Notes Payable | Notes Payable Notes payable consisted of the following (in thousands): November 30, 2018 2017 Mortgages and land contracts due to land sellers and other loans (at interest rates of 7% at November 30, 2018 and 3% to 6% at November 30, 2017) $ 40,038 $ 10,203 7 1/4% Senior notes due June 15, 2018 — 299,867 4.75% Senior notes due May 15, 2019 399,483 398,397 8.00% Senior notes due March 15, 2020 347,790 346,238 7.00% Senior notes due December 15, 2021 447,359 446,608 7.50% Senior notes due September 15, 2022 347,731 347,234 7.625% Senior notes due May 15, 2023 248,074 247,726 1.375% Convertible senior notes due February 1, 2019 229,788 228,572 Total $ 2,060,263 $ 2,324,845 The carrying amounts of our senior notes listed above are net of debt issuance costs and discounts, which totaled $9.8 million at November 30, 2018 and $15.4 million at November 30, 2017 . Unsecured Revolving Credit Facility. We have a $500.0 million Credit Facility that will mature on July 27, 2021 . The Credit Facility contains an uncommitted accordion feature under which its aggregate principal amount of available loans can be increased to a maximum of $600.0 million 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, which may be utilized in combination with, or to replace, the LOC Facility. Interest on amounts borrowed under the Credit Facility is payable at least quarterly in arrears at a rate based on either a Eurodollar or a base rate, plus a spread that depends on our Leverage Ratio, as defined under the Credit Facility. The Credit Facility also requires the payment of a commitment fee at a per annum rate ranging from .30% to .45% 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 an Interest Coverage Ratio or a minimum level of liquidity, each as defined therein. The amount of the Credit Facility available for cash borrowings or 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 November 30, 2018 , we had no cash borrowings and $28.0 million of letters of credit outstanding under the Credit Facility. LOC Facility. We maintain the LOC Facility to obtain letters of credit from time to time in the ordinary course of operating our business. As of November 30, 2018 and 2017, we had no letters of credit outstanding under the LOC Facility. The LOC Facility requires us to deposit and maintain cash with the issuing financial institution as collateral for any letters of credit that may be outstanding. Mortgages and Land Contracts Due to Land Sellers and Other Loans. As of November 30, 2018 , inventories having a carrying value of $132.6 million were pledged to collateralize mortgages and land contracts due to land sellers and other loans. Shelf Registration. We have the 2017 Shelf Registration filed with the SEC. Issuances of securities under our 2017 Shelf Registration require the filing of a prospectus supplement identifying the amount and terms of the securities to be issued. Our ability to issue securities is subject to market conditions and other factors impacting our borrowing capacity. Senior Notes. All of the senior notes outstanding at November 30, 2018 and 2017 represent senior unsecured obligations and rank equally in right of payment with all of our existing and future indebtedness. All of our outstanding senior notes were issued in underwritten public offerings. The key terms of each of our senior notes outstanding as of November 30, 2018 were as follows (dollars in thousands): Redeemable Prior to Maturity Effective Interest Rate Notes Payable Principal Issuance Date Maturity Date 4.75% Senior notes $ 400,000 March 25, 2014 May 15, 2019 Yes (a) 5.0 % 8.00% Senior notes 350,000 February 7, 2012 March 15, 2020 Yes (b) 8.5 7.00% Senior notes 450,000 October 29, 2013 December 15, 2021 Yes (a) 7.2 7.50% Senior notes 350,000 July 31, 2012 September 15, 2022 Yes (b) 7.7 7.625% Senior notes 250,000 February 17, 2015 May 15, 2023 Yes (a) 7.8 1.375% Convertible senior notes 230,000 January 29, 2013 February 1, 2019 Yes (c) 1.9 (a) At our option, these notes may be redeemed, in whole at any time or from time to time in part, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes being redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the notes being redeemed (exclusive of interest accrued to the applicable redemption date), discounted to the redemption date at a defined rate, plus, in each case, accrued and unpaid interest on the notes being redeemed to, but excluding, the applicable redemption date, except that three months prior to the stated maturity dates for the 4.75% Senior Notes due 2019 and the 7.00% Senior Notes due 2021 and until their respective maturity, and six months prior to the stated maturity date for the 7.625% Senior Notes due 2023 and until their maturity, the redemption price will be equal to 100% of the principal amount of the notes being redeemed, plus, in each case, accrued and unpaid interest on the notes being redeemed to, but excluding, the applicable redemption date. (b) At our option, these notes may be redeemed, in whole at any time or from time to time in part, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes being redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the notes being redeemed (exclusive of interest accrued to the applicable redemption date), discounted to the redemption date at a defined rate, plus, in each case, accrued and unpaid interest on the notes being redeemed to the applicable redemption date. (c) Prior to the stated maturity date, we may, at our option, redeem all or part of the notes at a redemption price equal to 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest to, but excluding, the redemption date. If a change in control occurs as defined in the instruments governing our senior notes, we would be required to offer to purchase all of our outstanding senior notes at 101% of their principal amount, together with all accrued and unpaid interest, if any. If a fundamental change, as defined in the instruments governing the 1.375% Convertible Senior Notes due 2019, occurs prior to the stated maturity date, the holders may require us to purchase for cash all or any portion of their 1.375% Convertible Senior Notes due 2019 at 100% of the principal amount of the notes, plus accrued and unpaid interest to, but not including, the fundamental change purchase date. On June 15, 2018, we repaid the entire $300.0 million in aggregate principal amount of our 7 1/4% Senior Notes due 2018 at their maturity using internally generated cash. On January 13, 2017, at our option, we redeemed $100.0 million in aggregate principal amount of our 9.10% Senior Notes due 2017 outstanding at the redemption price calculated in accordance with the “make-whole” provisions of the notes. We used internally generated cash to fund this redemption. We paid $105.3 million to redeem the notes and recorded a charge of $5.7 million for the early extinguishment of debt. We repaid the remaining $165.0 million in aggregate principal amount of our 9.10% Senior Notes due 2017 at their maturity on September 15, 2017 using internally generated funds. At any time prior to the close of business on the business day immediately preceding the maturity date, holders may convert all or any portion of the 1.375% Convertible Senior Notes due 2019. These notes are initially convertible into shares of our common stock at a conversion rate of 36.5297 shares for each $1,000 principal amount of the notes, which represents an initial conversion price of approximately $27.37 per share. This initial conversion rate equates to 8,401,831 shares of our common stock and is subject to adjustment upon the occurrence of certain events, including: subdivisions and combinations of our common stock; the issuance of stock dividends, or certain rights, options or warrants, capital stock, indebtedness, assets or cash dividends to all or substantially all holders of our common stock; and certain issuer tender or exchange offers. The conversion rate will not, however, be adjusted for other events, such as a third-party tender or exchange offer or an issuance of common stock for cash or an acquisition, that may adversely affect the trading price of the notes or our common stock. On conversion, holders of the 1.375% Convertible Senior Notes due 2019 will not be entitled to receive cash in lieu of shares of our common stock, except for cash in lieu of fractional shares. We maintain 12,602,735 shares of our common stock to meet conversions if and when they occur. This represents the maximum number of shares of our common stock potentially deliverable upon conversion to holders of the 1.375% Convertible Senior Notes due 2019 based on the terms of their governing instruments. The maximum number of shares would potentially be deliverable to holders only in certain limited circumstances as set forth in the instruments governing these notes. 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-leaseback transactions involving property or assets above a certain specified value. In addition, our senior notes contain certain limitations related to mergers, consolidations, and sales of assets. As of the date of this report, we were in compliance with the applicable terms of all our covenants and other requirements under the Credit Facility, 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. There are no agreements that restrict our payment of dividends other than the Credit Facility, which would restrict our payment of dividends (other than common stock dividends) if a default under the Credit Facility exists at the time of any such payment, or if any such payment would result in such a default (other than dividends paid within 60 days after declaration, if there was no default at the time of declaration). Principal payments on senior notes, mortgages and land contracts due to land sellers and other loans are due during each year ending November 30 as follows: 2019 — $670.0 million ; 2020 — $350.0 million ; 2021 — $0 ; 2022 — $800.0 million ; 2023— $250.0 million ; and thereafter — $0 . |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Nov. 30, 2018 | |
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): November 30, 2018 November 30, 2017 Description Fair Value Hierarchy Pre-Impairment Value Inventory Impairment Charges Fair Value (a) Pre-Impairment Value Inventory Impairment Charges Fair Value (a) Inventories (a) Level 3 $ 70,156 $ (26,104 ) $ 44,052 $ 58,962 $ (20,605 ) $ 38,357 (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 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): November 30, 2018 2017 Description Fair Value Hierarchy Carrying Value (a) Estimated Fair Value Carrying Value (a) Estimated Fair Value Financial Liabilities: Senior notes Level 2 $ 1,790,437 $ 1,853,438 $ 2,086,070 $ 2,292,250 Convertible senior notes Level 2 229,788 229,425 228,572 278,300 (a) The carrying values for the senior notes and convertible senior notes, as presented, include unamortized debt issuance costs. Debt issuance costs are not factored into the estimated fair values of these notes. The fair values of our senior notes and convertible senior notes are generally estimated based on quoted market prices for these instruments. The carrying values reported for cash and cash equivalents, and mortgages and land contracts due to land sellers and other loans approximate fair values. The carrying value of corporate-owned life insurance is based on the cash surrender value of the policies and, accordingly, approximates fair value. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Nov. 30, 2018 | |
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 to five years based on geographic market and state law, and a warranty of one year for other components of the home. Our limited warranty program is ordinarily how we respond to and account for homeowners’ requests to local division offices seeking repairs of certain conditions or defects, including claims where we could have liability under applicable state statutes or tort law for a defective condition in or damages to a home. Our warranty liability covers our costs of repairs associated with homeowner claims made under our limited warranty program. These claims are generally made directly by a homeowner and involve their individual home. 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): Years Ended November 30, 2018 2017 2016 Balance at beginning of year $ 69,798 $ 56,682 $ 49,085 Warranties issued 37,792 38,452 30,135 Payments (a) (23,300 ) (25,336 ) (23,190 ) Adjustments (1,800 ) — 652 Balance at end of year $ 82,490 $ 69,798 $ 56,682 (a) Payments for 2016 included $2.3 million to repair homes affected by water intrusion-related issues in certain of our communities in central and southwest Florida. 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. W e maintain, and require the majority of our independent subcontractors 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. In Arizona, California, Colorado and Nevada, our subcontractors’ general liability insurance primarily takes the form of a wrap-up policy under a program where eligible independent subcontractors are enrolled as insureds on each community. Enrolled subcontractors 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 subcontractors’ 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 certain 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 product 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 years 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 $56.9 million and $71.3 million are included in receivables in our consolidated balance sheets at November 30, 2018 and 2017, 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 year to year. 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): Years Ended November 30, 2018 2017 2016 Balance at beginning of year $ 177,695 $ 158,584 $ 173,011 Self-insurance expense (a) 20,436 20,371 24,808 Payments (b) (21,290 ) (22,933 ) (39,235 ) Adjustments (c) — 21,673 — Balance at end of year $ 176,841 $ 177,695 $ 158,584 (a) These expenses are included in selling, general and administrative expenses and are largely offset by contributions from independent subcontractors participating in the wrap-up policy. (b) Includes net changes in estimated probable insurance and other recoveries, which are recorded in receivables, to present our self-insurance liability on a gross basis. (c) The amount for 2017 reflected a change in estimate to increase our self-insurance liability based on an actuarially determined estimate that we believed had a higher probability of being adequate to cover future payments associated with unresolved claims, including claims incurred but not yet reported. This adjustment was included in selling, general and administrative expenses. 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 a subcontractor(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. Such receivables associated with our warranty and other claims totaled $4.8 million at November 30, 2018 and $4.1 million at November 30, 2017. We believe collection of these receivables is probable based on our history of collections for similar claims. In 2017, we received insurance recoveries of $23.5 million , which exceeded the $11.6 million of estimated probable recoveries receivable we had previously recorded. The excess recoveries were included in selling, general and administrative expenses. Northern California Claims. In the 2017 third quarter, we received claims from a homeowners association alleging approximately $100.0 million of damages from purported construction defects at a completed townhome community in Northern California. We continue to investigate these allegations, and to exchange information with the association, whose claims for damages have increased since November 30, 2018, and we currently expect it may take up to several quarters to fully evaluate these claims. At November 30, 2018, we had an accrual for our estimated probable loss in this matter and a receivable for estimated probable insurance recoveries. While it is reasonably possible that our loss could exceed the amount accrued, at this stage of our investigation into these allegations, we are unable to estimate the total amount of the loss in excess of the accrued amount that is reasonably possible. Our investigation will also involve identifying potentially responsible parties, including insurers, to pay for or perform any necessary repairs. In September 2018, an arbitration proceeding on this matter was scheduled for July 1, 2019. Florida Chapter 558 Actions . We and certain of our subcontractors have received a growing number of claims from attorneys on behalf of individual owners of our homes pursuant to Chapter 558 of the Florida Statutes that allege various construction defects, with most relating to stucco and water-intrusion issues. The claims primarily involve homes in our Jacksonville and Orlando 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 several of these claims without litigation, and a number of others have been resolved with applicable subcontractors or their insurers covering the related costs, as of November 30, 2018 , we had approximately 500 outstanding noticed claims, and some are scheduled for trial over the next few quarters and beyond. In addition, some of our subcontractors’ insurers in some of these cases have informed us of their inability to continue to pay claims-related costs. At November 30, 2018 , we had an accrual for our estimated probable loss for these matters. While it is reasonably possible that our loss could exceed the amount accrued, at this time, we are unable to estimate the total amount of the loss in excess of the accrued amount that is reasonably possible. 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 November 30, 2018 , we had $689.3 million of performance bonds and $28.0 million of letters of credit outstanding. At November 30, 2017 , we had $606.7 million of performance bonds and $37.6 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. Land Option Contracts and Other Similar Contracts. In the ordinary course of business, we enter into land option contracts and other similar contracts to acquire rights to land for the construction of homes. At November 30, 2018 , we had total cash deposits of $53.8 million to purchase land having an aggregate purchase price of $1.37 billion . Our land option contracts and other similar contracts generally do not contain provisions requiring our specific performance. Leases. We lease certain property and equipment under noncancelable operating leases. Office and equipment leases are typically for terms of three to five years and generally provide renewal options for terms up to an additional five years . In most cases, we expect that leases that expire will be renewed or replaced by other leases with similar terms. The future minimum rental payments under operating leases, which primarily consist of office leases having initial or remaining noncancelable lease terms in excess of one year , are as follows: 2019 — $8.7 million ; 2020 — $6.4 million ; 2021 — $4.3 million ; 2022 — $2.9 million ; 2023 — $2.3 million ; and thereafter — $4.3 million . Rental expense on our noncancelable operating leases was $8.6 million in 2018 , $8.1 million in 2017 and $7.5 million in 2016 . |
Legal Matters
Legal Matters | 12 Months Ended |
Nov. 30, 2018 | |
Loss Contingency, Information about Litigation Matters [Abstract] | |
Legal Matters | Legal Matters We are involved in litigation and regulatory proceedings incidental to our business that are in various procedural stages. We believe that the accruals we have recorded for probable and reasonably estimable losses with respect to these proceedings are adequate and that, as of November 30, 2018, 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 that 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. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Nov. 30, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Preferred Stock. To help protect the benefits of our NOLs and other deferred tax assets from an ownership change under Section 382, on January 22, 2009, we adopted a Rights Agreement (“Prior Rights Agreement”), and we declared a dividend distribution of one preferred share purchase right for each outstanding share of common stock that was payable to stockholders of record as of the close of business on March 5, 2009. On April 12, 2018, we entered into an Amended and Restated Rights Agreement with Computershare Inc., as rights agent, (“2018 Rights Agreement”) following its approval by our stockholders at our 2018 Annual Meeting held on April 12, 2018. The 2018 Rights Agreement amended and restated the Prior Rights Agreement and extended the latest possible expiration date of the rights issued pursuant to the Prior Rights Agreement to the close of business on April 30, 2021, and made certain other related changes. Otherwise, the 2018 Rights Agreement’s terms are substantively the same as those of the Prior Rights Agreement. Each share of our common stock delivered upon conversion to holders of the 1.375% Convertible Senior Notes due 2019 will include a preferred share purchase right associated with and subject to the terms of the 2018 Rights Agreement. Subject to the terms, provisions and conditions of the 2018 Rights Agreement, if these rights become exercisable, each right would initially represent the right to purchase from us 1/100th of a share of our Series A Participating Cumulative Preferred Stock for a purchase price of $85.00 (“Purchase Price”). If issued, each fractional share of preferred stock would generally give a stockholder approximately the same dividend, voting and liquidation rights as does one share of our common stock. However, prior to exercise, a right does not give its holder any rights as a stockholder, including without limitation any dividend, voting or liquidation rights. The rights will not be exercisable until the earlier of (a) 10 calendar days after a public announcement by us that a person or group has become an Acquiring Person (as defined under the Prior Rights Agreement) and (b) 10 business days after the commencement of a tender or exchange offer by a person or group if upon consummation of the offer the person or group would beneficially own 4.9% or more of our outstanding common stock. Until these rights become exercisable (“Distribution Date”), common stock certificates and/or book-entry shares will evidence the rights and may contain a notation to that effect. Any transfer of shares of our common stock prior to the Distribution Date will constitute a transfer of the associated rights. After the Distribution Date, the rights may be transferred other than in connection with the transfer of the underlying shares of our common stock. If there is an Acquiring Person on the Distribution Date or a person or group becomes an Acquiring Person after the Distribution Date, each holder of a right, other than rights that are or were beneficially owned by an Acquiring Person, which will be void, will thereafter have the right to receive upon exercise of a right and payment of the Purchase Price, that number of shares of our common stock having a market value of two times the Purchase Price. After the later of the Distribution Date and the time we publicly announce that an Acquiring Person has become such, our board of directors may exchange the rights, other than rights that are or were beneficially owned by an Acquiring Person, which will be void, in whole or in part, at an exchange ratio of one share of common stock per right, subject to adjustment. At any time prior to the later of the Distribution Date and the time we publicly announce that an Acquiring Person becomes such, our board of directors may redeem all of the then-outstanding rights in whole, but not in part, at a price of $.001 per right, subject to adjustment (“Redemption Price”). The redemption will be effective immediately upon the board of directors’ action, unless the action provides that such redemption will be effective at a subsequent time or upon the occurrence or nonoccurrence of one or more specified events, in which case the redemption will be effective in accordance with the provisions of the action. Immediately upon the effectiveness of the redemption of the rights, the right to exercise the rights will terminate and the only right of the holders of rights will be to receive the Redemption Price, with interest thereon. The rights issued pursuant to the 2018 Rights Agreement will expire on the earliest of (a) the close of business on April 30, 2021 (b) the time at which the rights are redeemed, (c) the time at which the rights are exchanged, (d) the time at which our board of directors determines that a related provision in our Restated Certificate of Incorporation is no longer necessary, and (e) the close of business on the first day of a taxable year of ours to which our board of directors determines that no tax benefits may be carried forward. Common Stock. In January 2016, our board of directors authorized us to repurchase a total of up to 10,000,000 shares of our outstanding common stock. This authorization reaffirmed and incorporated the then-current balance of 4,000,000 shares that remained under a prior board-approved share repurchase program. In 2016, we repurchased 8,373,000 shares of our common stock pursuant to this authorization, at a total cost of $85.9 million . On May 14, 2018 our board of directors reaffirmed the remainder of the 2016 authorization and approved and authorized the repurchase of 2,373,000 additional shares of our outstanding common stock, for a total of up to 4,000,000 shares authorized for repurchase. In 2018, we repurchased 1,806,053 shares of our common stock pursuant to this authorization, at a total cost of $35.0 million . The amount and timing of shares remaining to be purchased under the share repurchase program are subject to market and business conditions and other factors, and purchases may be made from time to time and at any time through open market or privately negotiated transactions. This share repurchase authorization will continue in effect until fully used or earlier if terminated or suspended by the board of directors. We did not repurchase any of our common stock under this program in 2017. Unrelated to the share repurchase program, our board of directors authorized the repurchase of not more than 680,000 shares of our outstanding common stock, and also authorized potential future grants of up to 680,000 stock payment awards under the KB Home 2014 Equity Incentive Plan (“2014 Plan”), in each case solely as necessary for director elections in respect of outstanding Director Plan SARs. The 2014 Plan, which was amended in April 2016, is discussed in Note 19 – Employee Benefit and Stock Plans. As of November 30, 2018, we have not repurchased any shares and no stock payment awards have been granted under the 2014 Plan, as amended, pursuant to the respective board of directors’ authorizations. Our board of directors declared four quarterly cash dividends of $.025 per share of common stock in 2018, 2017 and 2016. All dividends declared during 2018, 2017 and 2016 were also paid during those years. Treasury Stock. In addition to the shares purchased in 2018 and 2016 pursuant to our share repurchase program, we acquired $8.5 million , $6.7 million and $2.4 million of our common stock in 2018, 2017 and 2016, respectively. All of the common stock acquired in 2017 and a portion of the common stock acquired in 2018 and 2016 consisted of previously issued shares delivered to us by employees to satisfy their withholding tax obligations on the vesting of PSUs and restricted stock awards or of forfeitures of previous restricted stock awards. Treasury stock is recorded at cost. Differences between the cost of treasury stock and the reissuance proceeds are recorded to paid-in capital. These transactions are not considered repurchases under the 4,000,000 share repurchase program described above. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Nov. 30, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table presents the changes in the balances of each component of accumulated other comprehensive loss (in thousands): Postretirement Benefit Plan Adjustments Total Accumulated Other Comprehensive Loss Balance at November 30, 2016 $ (16,057 ) Other comprehensive loss before reclassifications (3,143 ) Amounts reclassified from accumulated other comprehensive loss 1,698 Income tax benefit related to items of other comprehensive loss 578 Other comprehensive loss, net of tax (867 ) Balance at November 30, 2017 (16,924 ) Other comprehensive income before reclassifications 8,216 Amounts reclassified from accumulated other comprehensive loss 1,892 Income tax expense related to items of other comprehensive income (2,749 ) Other comprehensive income, net of tax 7,359 Balance at November 30, 2018 $ (9,565 ) The amounts reclassified from accumulated other comprehensive loss consisted of the following (in thousands): Years Ended November 30, Details About Accumulated Other Comprehensive Loss Components 2018 2017 2016 Postretirement benefit plan adjustments Amortization of net actuarial loss $ 336 $ 142 $ 79 Amortization of prior service cost 1,556 1,556 1,556 Total reclassifications (a) $ 1,892 $ 1,698 $ 1,635 (a) The accumulated other comprehensive loss components are included in the computation of net periodic benefit costs as further discussed in Note 20 – Postretirement Benefits. The estimated prior service cost expected to be amortized from accumulated other comprehensive loss into net periodic benefit cost during 2019 is $1.6 million . |
Employee Benefit and Stock Plan
Employee Benefit and Stock Plans | 12 Months Ended |
Nov. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Benefit and Stock Plans | Employee Benefit and Stock Plans Most of our employees are eligible to participate in the KB Home 401(k) Savings Plan (“401(k) Plan”) under which we partially match employee contributions. The aggregate cost of the 401(k) Plan to us was $6.0 million in 2018 , $6.2 million in 2017 and $5.3 million in 2016 . The assets of the 401(k) Plan are held by a third-party trustee. The 401(k) Plan participants may direct the investment of their funds among one or more of the several fund options offered by the 401(k) Plan. As of November 30, 2018 , 2017 and 2016 , approximately 5% , 7% and 5% , respectively, of the 401(k) Plan’s net assets at each period were invested in our common stock. Approval of Amended KB Home 2014 Plan. At our Annual Meeting of Stockholders held on April 7, 2016, our stockholders approved the Amended KB Home 2014 Equity Incentive Plan (“Amended 2014 Plan”), authorizing, among other things, the issuance for grants of stock-based awards to our employees, non-employee directors and consultants of up to 7,500,000 additional shares above the original 4,800,000 shares our stockholders approved under the plan (or an aggregate issuance of 12,300,000 shares), plus any shares that were available for grant as of April 7, 2014 under our 2010 Equity Incentive Plan (“2010 Plan”), and any shares subject to then-outstanding awards under the 2010 Plan that subsequently expire or are cancelled, forfeited, tendered or withheld to satisfy tax withholding obligations with respect to full value awards, or settled for cash. No new awards may be made under the 2010 Plan. Therefore, the Amended 2014 Plan is our only active equity compensation plan. Under the Amended 2014 Plan, grants of stock options and other similar awards reduce the Amended 2014 Plan’s share capacity on a 1 -for-1 basis, and grants of restricted stock and other similar “full value” awards reduce the Amended 2014 Plan’s share capacity on a 1.78 -for-1 basis. In addition, subject to the Amended 2014 Plan’s terms and conditions, a stock-based award may also be granted under the Amended 2014 Plan to replace an outstanding award granted under another plan of ours (subject to the terms of such other plan) with terms substantially identical to those of the award being replaced. The Amended 2014 Plan provides that stock options and SARs may be awarded for periods of up to 10 years . The Amended 2014 Plan also enables us to grant cash bonuses and other stock-based awards. As of November 30, 2018, 2017 and 2016, in addition to awards outstanding under the Amended 2014 Plan, we had awards outstanding under the 2010 Plan and our Amended and Restated 1999 Incentive Plan, both of which provided for generally the same types of awards as the Amended 2014 Plan. We also had awards outstanding under our Performance-Based Incentive Plan for Senior Management, which provided for generally the same types of awards as the Amended 2014 Plan, but stock option awards granted under this plan had terms of up to 15 years years. Stock-Based Compensation. With the approval of the management development and compensation committee, consisting entirely of independent members of our board of directors, we have provided compensation benefits to certain of our employees in the form of stock options, restricted stock and PSUs. Certain stock-based compensation benefits are also provided to our non-employee directors pursuant to the Director Plan. Compensation expense related to equity-based awards is included in selling, general and administrative expenses in our consolidated statements of operations. The following table presents our stock-based compensation expense (in thousands): Years Ended November 30, 2018 2017 2016 Stock options $ 917 $ 2,592 $ 7,076 Restricted stock 4,600 4,177 2,630 PSUs 8,790 6,439 5,343 Director awards 1,554 1,425 1,801 Total $ 15,861 $ 14,633 $ 16,850 Stock Options. Stock option transactions are summarized as follows: Years Ended November 30, 2018 2017 2016 Options Weighted Average Exercise Price Options Weighted Average Exercise Price Options Weighted Average Exercise Price Options outstanding at beginning of year 9,265,240 $ 17.64 12,731,545 $ 18.95 12,635,644 $ 19.39 Granted — — — — 1,012,686 16.21 Exercised (1,195,926 ) 16.73 (1,650,360 ) 16.01 (551,898 ) 13.95 Cancelled (831,770 ) 33.05 (1,815,945 ) 28.31 (364,887 ) 34.07 Options outstanding at end of year 7,237,544 $ 16.02 9,265,240 $ 17.64 12,731,545 $ 18.95 Options exercisable at end of year 6,948,670 $ 16.01 8,307,632 $ 17.86 10,506,810 $ 19.70 Options available for grant at end of year 6,418,197 7,495,792 7,034,523 The total intrinsic value of stock options exercised was $11.8 million for the year ended November 30, 2018 , $12.1 million for the year ended November 30, 2017 and $1.4 million for the year ended November 30, 2016 . The aggregate intrinsic value of stock options outstanding was $51.9 million , $136.3 million and $24.5 million at November 30, 2018 , 2017 and 2016 , respectively. The intrinsic value of stock options exercisable was $50.5 million at November 30, 2018 , $121.3 million at November 30, 2017 , and $23.3 million at November 30, 2016 . The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the price of the option. Stock options outstanding and stock options exercisable at November 30, 2018 are summarized as follows: Options Outstanding Options Exercisable Range of Exercise Price Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life $ 6.32 to $11.05 1,201,167 $ 6.36 2.9 1,201,167 $ 6.36 $11.06 to $14.62 2,048,758 12.99 4.0 2,048,758 12.99 $14.63 to $16.20 1,906,964 15.14 4.1 1,906,964 15.14 $16.21 to $28.10 1,300,596 16.35 6.8 1,011,722 16.39 $28.11 to $45.68 780,059 40.46 0.8 780,059 40.46 $ 6.32 to $45.68 7,237,544 $ 16.02 4.0 6,948,670 $ 16.01 3.8 There were no stock options granted in 2018 or 2017. The weighted average grant date fair value of stock options granted in 2016 was $5.82 . The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: Years Ended November 30, 2018 2017 2016 Risk-free interest rate — — 1.3 % Expected volatility factor — — 41.3 % Expected dividend yield — — .6 % Expected term — — 5 years The risk-free interest rate assumption was determined based on observed interest rates appropriate for the stock options’ expected term. The expected volatility factor was based on a combination of the historical volatility of our common stock and the implied volatility of publicly traded options on our stock. The expected dividend yield assumption was based on our history of dividend payouts. The expected term of employee stock options was estimated using historical data. As of November 30, 2018 , there was $.1 million of total unrecognized stock-based compensation expense related to unvested stock option awards. This expense is expected to be recognized over a weighted average period of 0.9 years . The tax shortfalls of $3.3 million in 2017 and $2.2 million in 2016 resulting from the cancellation of stock awards were reflected in paid-in capital. In 2017 and 2016, the consolidated statement of cash flows reflected $1.0 million and $.2 million , respectively, of excess tax benefits associated with the exercise of stock options. Restricted Stock. From time to time, we grant restricted stock to various employees as a compensation benefit. During the restriction periods, these employees are entitled to vote and to receive cash dividends on such shares. The restrictions imposed with respect to the shares granted lapse in installments within, or in full at the end of, three years after their grant date if certain conditions are met. Restricted stock transactions are summarized as follows: Years Ended November 30, 2018 2017 2016 Shares Weighted Average per Share Grant Date Fair Value Shares Weighted Average per Share Grant Date Fair Value Shares Weighted Average per Share Grant Date Fair Value Outstanding at beginning of year 503,926 $ 21.69 604,619 $ 16.24 416,977 $ 15.88 Granted 303,030 23.05 321,835 24.49 453,703 15.73 Vested (221,951 ) 19.79 (364,670 ) 16.09 (252,854 ) 14.78 Cancelled (29,548 ) 21.76 (57,858 ) 15.61 (13,207 ) 15.12 Outstanding at end of year 555,457 $ 23.19 503,926 $ 21.69 604,619 $ 16.24 As of November 30, 2018 , we had $11.6 million of total unrecognized compensation cost related to restricted stock awards that will be recognized over a weighted average period of approximately three years. Performance-Based Restricted Stock Units. On October 5, 2018, we granted PSUs to certain employees. Each PSU grant corresponds to a target amount of our common stock (“Award Shares”). Each PSU entitles the recipient to receive a grant of between 0% and 200% of the recipient’s Award Shares, and will vest based on our achieving, over a three -year period commencing on December 1, 2018 and ending on November 30, 2021, specified levels of (a) cumulative adjusted earnings per share; (b) average adjusted return on invested capital; and (c) revenue growth performance relative to a peer group of high-production public homebuilding companies. The grant date fair value of each such PSU was $23.05 . On October 5, 2017, we granted PSUs to certain employees with similar terms as the 2018 PSU grants, except that the applicable performance period commenced on December 1, 2017 and ends on November 30, 2020. The grant date fair value of each such PSU was $25.64 . On October 6, 2016, we granted PSUs to certain employees with similar terms as the 2018 PSU grants, except that the applicable performance period commenced on December 1, 2016 and ends on November 30, 2019. The grant date fair value of each such PSU was $16.21 . PSU transactions are summarized as follows: Years Ended November 30, 2018 2017 2016 Shares Weighted Average per Share Grant Date Fair Value Shares Weighted Average per Share Grant Date Fair Value Shares Weighted Average per Share Grant Date Fair Value Outstanding at beginning of year 925,232 $ 20.09 809,860 $ 17.19 820,209 $ 15.52 Granted 603,424 25.70 424,797 22.99 369,281 13.81 Vested (437,689 ) 31.28 (278,460 ) 16.67 (374,630 ) 10.21 Cancelled — — (30,965 ) 14.92 (5,000 ) 16.21 Outstanding at end of year 1,090,967 $ 18.70 925,232 $ 20.09 809,860 $ 17.19 The number of shares of our common stock actually granted to a recipient, if any, when a PSU vests will depend on the degree of achievement of the applicable performance measures during the applicable three -year period. The shares of our common stock that were granted under the terms of PSUs that vested in 2018 included an aggregate of 194,529 additional shares above the target amount awarded to the eligible recipients based on our achieving certain levels of cumulative adjusted earnings per share, average adjusted return on invested capital and revenue growth performance relative to a peer group of high-production public homebuilding companies over the three-year period from December 1, 2014 through November 30, 2017. The shares of our common stock that were granted under the terms of PSUs that vested in 2017 included an aggregate of 125,460 additional shares above the target amount awarded to the eligible recipients based on our achieving certain levels of average return on equity performance and revenue growth performance relative to a peer group of high-production homebuilding companies over the three-year period from December 1, 2013 through November 30, 2016. The PSUs do not have dividend or voting rights during the performance period. Compensation cost for PSUs is initially estimated based on target performance achievement and adjusted as appropriate throughout the performance period. Accordingly, future compensation costs associated with outstanding PSUs may increase or decrease based on the probability and extent of achievement with respect to the applicable performance measures. At November 30, 2018 , we had $27.4 million of total unrecognized compensation cost related to unvested PSUs, which is expected to be recognized over a weighted-average period of approximately three years. Director Awards. We have granted Director Plan SARs and deferred common stock awards to our non-employee directors pursuant to the terms of the Director Plan and elections made by each director. All of these awards were fully vested as of November 30, 2016. Director Plan SARs, which have not been granted since April 2014 as they ceased being a component of non-employee director compensation after that date, are stock settled, have terms of up to 15 years and may be exercised when a respective director leaves the board or earlier if applicable stock ownership requirements have been met. Deferred common stock awards will be paid out at the earlier of a change in control or the date a respective director leaves the board. All Director Plan SARs were granted at an exercise price equal to the closing price of our common stock on the date of grant. At November 30, 2018 , 2017 and 2016, the aggregate outstanding Director Plan SARs were 308,880 , 308,880 and 452,983 , respectively, and the aggregate outstanding deferred common stock awards granted under the Director Plan were 490,240 , 456,875 and 485,632 , respectively. In addition, we have granted common stock on an unrestricted basis to our non-employee directors on the grant date pursuant to the Director Plan and elections made by each director. Grantor Stock Ownership Trust. We have a grantor stock ownership trust (“Trust”), administered by a third-party trustee, that holds and distributes the shares of common stock acquired to support certain employee compensation and employee benefit obligations under our existing stock option plan, the 401(k) Plan and other employee benefit plans. The existence of the Trust does not impact the amount of benefits or compensation that is paid under these plans. For financial reporting purposes, the Trust is consolidated with us, and therefore any dividend transactions between us and the Trust are eliminated. Acquired shares held by the Trust remain valued at the market price on the date of purchase and are shown as a reduction to stockholders’ equity in the consolidated balance sheets. The difference between the Trust share value and the market value on the date shares are released from the Trust is included in paid-in capital. Common stock held in the Trust is not considered outstanding in the computations of earnings per share. The Trust held 8,157,235 and 8,897,954 shares of common stock at November 30, 2018 and 2017 , respectively. The trustee votes shares held by the Trust in accordance with voting directions from eligible employees, as specified in a trust agreement with the trustee. |
Postretirement Benefits
Postretirement Benefits | 12 Months Ended |
Nov. 30, 2018 | |
Retirement Benefits [Abstract] | |
Postretirement Benefits | Postretirement Benefits We have a supplemental non-qualified, unfunded retirement plan, the KB Home Retirement Plan (“Retirement Plan”), effective as of July 11, 2002, pursuant to which we have offered to pay supplemental pension benefits to certain designated individuals (consisting of current and former employees) in connection with their retirement. The Retirement Plan was closed to new participants in 2004. We also have an unfunded death benefit plan, the KB Home Death Benefit Only Plan (“DBO Plan”), implemented on November 1, 2001, for certain designated individuals (consisting of current and former employees). The DBO Plan was closed to new participants in 2006. In connection with these plans, we have purchased cost recovery life insurance contracts on the lives of the designated individuals. The insurance contracts associated with the plans are held by a trust. The trust is the owner and beneficiary of such insurance contracts. The amount of the insurance coverage under the contracts is designed to provide sufficient funds to cover all costs of the plans if assumptions made as to employment term, mortality experience, policy earnings and other factors, as applicable, are realized. The cash surrender value of the Retirement Plan life insurance contracts was $44.4 million at November 30, 2018 and $46.8 million at November 30, 2017 . We recognized investment losses on the cash surrender value of the Retirement Plan life insurance contracts of $.9 million in 2018 , and investment gains of $3.9 million in 2017 and $.4 million in 2016 . In 2018 , 2017 and 2016 , we paid $1.6 million , $1.5 million and $1.4 million , respectively, in benefits under the Retirement Plan to eligible former employees. The cash surrender value of the DBO Plan life insurance contracts was $18.2 million at November 30, 2018 and $18.5 million at November 30, 2017 . We recognized an investment loss on the cash surrender value of the DBO Plan life insurance contracts of $.3 million in 2018 , and investment gains of $1.5 million in 2017 and $.2 million in 2016 . We have not paid out any benefits under the DBO Plan. The net periodic benefit cost of our Retirement Plan and DBO Plan consisted of the following (in thousands): Years Ended November 30, 2018 2017 2016 Interest cost $ 2,252 $ 2,274 $ 2,285 Amortization of prior service cost 1,556 1,556 1,556 Service cost 1,085 1,046 1,045 Amortization of net actuarial loss 336 142 79 Total $ 5,229 $ 5,018 $ 4,965 The liabilities related to these plans were $60.8 million at November 30, 2018 and $66.5 million at November 30, 2017 , and are included in accrued expenses and other liabilities in the consolidated balance sheets. For the years ended November 30, 2018 and 2017 , the discount rates we used for the plans were 4.1% and 3.5% , respectively. Benefit payments under our Retirement Plan and DBO Plan are expected to be paid during each year ending November 30 as follows: 2019 — $2.2 million ; 2020 — $2.5 million ; 2021 — $3.1 million ; 2022 — $3.2 million ; 2023 — $3.5 million ; and for the five years ended November 30, 2028 — $20.7 million in the aggregate. |
Supplemental Disclosure to Cons
Supplemental Disclosure to Consolidated Statements of Cash Flows | 12 Months Ended |
Nov. 30, 2018 | |
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): Years Ended November 30, 2018 2017 2016 Summary of cash and cash equivalents at the end of the year: Homebuilding $ 574,359 $ 720,630 $ 592,086 Financial services 760 231 914 Total $ 575,119 $ 720,861 $ 593,000 Supplemental disclosure of cash flow information: Interest paid, net of amounts capitalized $ 8,338 $ 7,581 $ 5,567 Income taxes paid 11,949 4,664 3,307 Income taxes refunded 220 202 550 Supplemental disclosure of non-cash activities: Reclassification of warranty recoveries to receivables $ — $ — $ 2,151 Increase (decrease) in consolidated inventories not owned 16,098 (44,833 ) (59,413 ) Increase in inventories due to distributions of land and land development from an unconsolidated joint venture 17,637 6,650 4,277 Inventories acquired through seller financing 44,586 49,658 99,108 |
Supplemental Guarantor Informat
Supplemental Guarantor Information | 12 Months Ended |
Nov. 30, 2018 | |
Guarantees [Abstract] | |
Supplemental Guarantor Information | Supplemental Guarantor Information Our obligations to pay principal, premium, if any, and interest on the senior notes and borrowings, if any, under the Credit Facility are guaranteed on a joint and several basis by certain of our subsidiaries (“Guarantor Subsidiaries”). The guarantees are full and unconditional and the Guarantor Subsidiaries are 100% owned by us. Pursuant to the terms of the indenture governing the senior notes and the terms of the Credit Facility, if any of the Guarantor Subsidiaries ceases to be a “significant subsidiary” as defined by Rule 1-02 of Regulation S-X using a 5% rather than a 10% threshold (provided that the assets of our non-guarantor subsidiaries do not in the aggregate exceed 10% of an adjusted measure of our consolidated total assets), it will be automatically and unconditionally released and discharged from its guaranty of the senior notes and the Credit Facility so long as all guarantees by such Guarantor Subsidiary of any other of our or our subsidiaries’ indebtedness are terminated at or prior to the time of such release. We have determined that separate, full financial statements of the Guarantor Subsidiaries would not be material to investors and, accordingly, supplemental financial information for the Guarantor Subsidiaries is presented. The supplemental financial information for all periods presented below reflects those subsidiaries that qualified as Guarantor Subsidiaries as of November 30, 2018 . Condensed Consolidating Statements of Operations (in thousands) Year Ended November 30, 2018 KB Home Corporate Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Revenues $ — $ 4,198,969 $ 348,033 $ — $ 4,547,002 Homebuilding: Revenues $ — $ 4,198,969 $ 334,826 $ — $ 4,533,795 Construction and land costs — (3,435,058 ) (308,862 ) — (3,743,920 ) Selling, general and administrative expenses (101,152 ) (311,815 ) (31,187 ) — (444,154 ) Operating income (loss) (101,152 ) 452,096 (5,223 ) — 345,721 Interest income 3,273 11 230 — 3,514 Interest expense (141,812 ) (2,624 ) (5,262 ) 149,698 — Intercompany interest 302,253 (142,882 ) (9,673 ) (149,698 ) — Equity in income of unconsolidated joint ventures — 2,066 — — 2,066 Homebuilding pretax income (loss) 62,562 308,667 (19,928 ) — 351,301 Financial services pretax income — — 16,664 — 16,664 Total pretax income (loss) 62,562 308,667 (3,264 ) — 367,965 Income tax expense (62,100 ) (101,200 ) (34,300 ) — (197,600 ) Equity in net income of subsidiaries 169,903 — — (169,903 ) — Net income (loss) $ 170,365 $ 207,467 $ (37,564 ) $ (169,903 ) $ 170,365 Year Ended November 30, 2017 KB Home Corporate Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Revenues $ — $ 4,034,057 $ 334,472 $ — $ 4,368,529 Homebuilding: Revenues $ — $ 4,034,057 $ 322,208 $ — $ 4,356,265 Construction and land costs — (3,342,617 ) (303,851 ) — (3,646,468 ) Selling, general and administrative expenses (91,120 ) (298,498 ) (36,776 ) — (426,394 ) Operating income (loss) (91,120 ) 392,942 (18,419 ) — 283,403 Interest income 1,232 8 — — 1,240 Interest expense (172,102 ) (1,635 ) (3,434 ) 170,864 (6,307 ) Intercompany interest 266,784 (118,138 ) 22,218 (170,864 ) — Equity in loss of unconsolidated joint ventures — (1,407 ) (2 ) — (1,409 ) Homebuilding pretax income 4,794 271,770 363 — 276,927 Financial services pretax income — — 13,068 — 13,068 Total pretax income 4,794 271,770 13,431 — 289,995 Income tax expense (8,800 ) (100,000 ) (600 ) — (109,400 ) Equity in net income of subsidiaries 184,601 — — (184,601 ) — Net income $ 180,595 $ 171,770 $ 12,831 $ (184,601 ) $ 180,595 Year Ended November 30, 2016 KB Home Corporate Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Revenues $ — $ 3,243,928 $ 350,718 $ — $ 3,594,646 Homebuilding: Revenues $ — $ 3,243,928 $ 339,015 $ — $ 3,582,943 Construction and land costs — (2,706,402 ) (334,699 ) — (3,041,101 ) Selling, general and administrative expenses (91,859 ) (254,210 ) (43,372 ) — (389,441 ) Operating income (loss) (91,859 ) 283,316 (39,056 ) — 152,401 Interest income 470 55 4 — 529 Interest expense (177,329 ) (3,958 ) (3,946 ) 179,333 (5,900 ) Intercompany interest 301,432 (105,865 ) (16,234 ) (179,333 ) — Equity in loss of unconsolidated joint ventures — (2,181 ) — — (2,181 ) Homebuilding pretax income (loss) 32,714 171,367 (59,232 ) — 144,849 Financial services pretax income — — 4,466 — 4,466 Total pretax income (loss) 32,714 171,367 (54,766 ) — 149,315 Income tax benefit (expense) 17,200 (52,700 ) (8,200 ) — (43,700 ) Equity in net income of subsidiaries 55,701 — — (55,701 ) — Net income (loss) $ 105,615 $ 118,667 $ (62,966 ) $ (55,701 ) $ 105,615 Condensed Consolidating Statements of Comprehensive Income (Loss) (in thousands) Year Ended November 30, 2018 KB Home Corporate Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Net income (loss) $ 170,365 $ 207,467 $ (37,564 ) $ (169,903 ) $ 170,365 Other comprehensive income: Postretirement benefit plan adjustments 10,108 — — — 10,108 Other comprehensive income before tax 10,108 — — — 10,108 Income tax expense related to items of other comprehensive income (2,749 ) — — — (2,749 ) Other comprehensive income, net of tax 7,359 — — — 7,359 Comprehensive income (loss) $ 177,724 $ 207,467 $ (37,564 ) $ (169,903 ) $ 177,724 Year Ended November 30, 2017 KB Home Corporate Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Net income $ 180,595 $ 171,770 $ 12,831 $ (184,601 ) $ 180,595 Other comprehensive loss: Postretirement benefit plan adjustments (1,445 ) — — — (1,445 ) Other comprehensive loss before tax (1,445 ) — — — (1,445 ) Income tax benefit related to items of other comprehensive loss 578 — — — 578 Other comprehensive loss, net of tax (867 ) — — — (867 ) Comprehensive income $ 179,728 $ 171,770 $ 12,831 $ (184,601 ) $ 179,728 Year Ended November 30, 2016 KB Home Corporate Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Net income (loss) $ 105,615 $ 118,667 $ (62,966 ) $ (55,701 ) $ 105,615 Other comprehensive income: Postretirement benefit plan adjustments 2,103 — — — 2,103 Other comprehensive income before tax 2,103 — — — 2,103 Income tax expense related to items of other comprehensive income (841 ) — — — (841 ) Other comprehensive income, net of tax 1,262 — — — 1,262 Comprehensive income (loss) $ 106,877 $ 118,667 $ (62,966 ) $ (55,701 ) $ 106,877 Condensed Consolidating Balance Sheets (in thousands) November 30, 2018 KB Home Corporate Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Assets Homebuilding: Cash and cash equivalents $ 429,977 $ 114,269 $ 30,113 $ — $ 574,359 Receivables 5,135 198,465 89,230 — 292,830 Inventories — 3,314,386 268,453 — 3,582,839 Investments in unconsolidated joint ventures — 61,960 — — 61,960 Deferred tax assets, net 84,564 303,669 53,587 — 441,820 Other assets 95,738 9,530 2,115 — 107,383 615,414 4,002,279 443,498 — 5,061,191 Financial services — — 12,380 — 12,380 Intercompany receivables 3,569,422 — 158,760 (3,728,182 ) — Investments in subsidiaries 67,657 — — (67,657 ) — Total assets $ 4,252,493 $ 4,002,279 $ 614,638 $ (3,795,839 ) $ 5,073,571 Liabilities and stockholders’ equity Homebuilding: Accounts payable, accrued expenses and other liabilities $ 126,176 $ 584,321 $ 213,816 $ — $ 924,313 Notes payable 1,995,115 40,038 25,110 — 2,060,263 2,121,291 624,359 238,926 — 2,984,576 Financial services — — 1,495 — 1,495 Intercompany payables 43,702 3,377,920 306,560 (3,728,182 ) — Stockholders’ equity 2,087,500 — 67,657 (67,657 ) 2,087,500 Total liabilities and stockholders’ equity $ 4,252,493 $ 4,002,279 $ 614,638 $ (3,795,839 ) $ 5,073,571 November 30, 2017 KB Home Corporate Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Assets Homebuilding: Cash and cash equivalents $ 575,193 $ 104,120 $ 41,317 $ — $ 720,630 Receivables 24,815 145,067 74,331 — 244,213 Inventories — 2,959,606 303,780 — 3,263,386 Investments in unconsolidated joint ventures — 64,794 — — 64,794 Deferred tax assets, net 250,747 243,523 139,367 — 633,637 Other assets 91,592 8,954 1,952 — 102,498 942,347 3,526,064 560,747 — 5,029,158 Financial services — — 12,357 — 12,357 Intercompany receivables 3,414,237 — 107,992 (3,522,229 ) — Investments in subsidiaries 49,776 — — (49,776 ) — Total assets $ 4,406,360 $ 3,526,064 $ 681,096 $ (3,572,005 ) $ 5,041,515 Liabilities and stockholders’ equity Homebuilding: Accounts payable, accrued expenses and other liabilities $ 163,984 $ 374,051 $ 251,358 $ — $ 789,393 Notes payable 2,289,532 9,283 26,030 — 2,324,845 2,453,516 383,334 277,388 — 3,114,238 Financial services — — 966 — 966 Intercompany payables 26,533 3,142,730 352,966 (3,522,229 ) — Stockholders’ equity 1,926,311 — 49,776 (49,776 ) 1,926,311 Total liabilities and stockholders’ equity $ 4,406,360 $ 3,526,064 $ 681,096 $ (3,572,005 ) $ 5,041,515 Condensed Consolidating Statements of Cash Flows (in thousands) Year Ended November 30, 2018 KB Home Corporate Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Net cash provided by (used in) operating activities $ 236,892 $ 9,668 $ (25,048 ) $ — $ 221,512 Cash flows from investing activities: Contributions to unconsolidated joint ventures — (22,672 ) 1 — (22,671 ) Return of investments in unconsolidated joint ventures — 9,934 — — 9,934 Purchases of property and equipment, net (6,584 ) (674 ) (112 ) — (7,370 ) Intercompany (43,128 ) — — 43,128 — Net cash used in investing activities (49,712 ) (13,412 ) (111 ) 43,128 (20,107 ) Cash flows from financing activities: Repayment of senior notes (300,000 ) — — — (300,000 ) Borrowings under revolving credit facility 70,000 — — — 70,000 Repayments under revolving credit facility (70,000 ) — — — (70,000 ) Payments on mortgages and land contracts due to land sellers and other loans — (13,831 ) (920 ) — (14,751 ) Issuance of common stock under employee stock plans 20,011 — — — 20,011 Stock repurchases (35,039 ) — — — (35,039 ) Tax payments associated with stock-based compensation awards (8,476 ) — — — (8,476 ) Payments of cash dividends (8,892 ) — — — (8,892 ) Intercompany — 27,724 15,404 (43,128 ) — Net cash provided by (used in) financing activities (332,396 ) 13,893 14,484 (43,128 ) (347,147 ) Net increase (decrease) in cash and cash equivalents (145,216 ) 10,149 (10,675 ) — (145,742 ) Cash and cash equivalents at beginning of year 575,193 104,120 41,548 — 720,861 Cash and cash equivalents at end of year $ 429,977 $ 114,269 $ 30,873 $ — $ 575,119 Year Ended November 30, 2017 KB Home Corporate Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Net cash provided by operating activities $ 70,683 $ 366,005 $ 76,531 $ — $ 513,219 Cash flows from investing activities: Contributions to unconsolidated joint ventures — (13,569 ) (5,125 ) — (18,694 ) Return of investments in unconsolidated joint ventures — 4,119 6,916 — 11,035 Purchases of property and equipment, net (7,215 ) (809 ) (61 ) — (8,085 ) Intercompany 311,857 — — (311,857 ) — Net cash provided by (used in) investing activities 304,642 (10,259 ) 1,730 (311,857 ) (15,744 ) Cash flows from financing activities: Repayment of senior notes (270,326 ) — — — (270,326 ) Issuance costs for unsecured revolving credit facility (1,711 ) — — — (1,711 ) Payments on mortgages and land contracts due to land sellers and other loans — (106,382 ) — — (106,382 ) Issuance of common stock under employee stock plans 23,162 — — — 23,162 Excess tax benefits from stock-based compensation 958 — — — 958 Tax payments associated with stock-based compensation awards (6,673 ) — — — (6,673 ) Payments of cash dividends (8,642 ) — — — (8,642 ) Intercompany — (251,147 ) (60,710 ) 311,857 — Net cash used in financing activities (263,232 ) (357,529 ) (60,710 ) 311,857 (369,614 ) Net increase (decrease) in cash and cash equivalents 112,093 (1,783 ) 17,551 — 127,861 Cash and cash equivalents at beginning of year 463,100 105,903 23,997 — 593,000 Cash and cash equivalents at end of year $ 575,193 $ 104,120 $ 41,548 $ — $ 720,861 Year Ended November 30, 2016 KB Home Corporate Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Net cash provided by (used in) operating activities $ (40,277 ) $ 183,466 $ 45,466 $ — $ 188,655 Cash flows from investing activities: Contributions to unconsolidated joint ventures — (4,852 ) (750 ) — (5,602 ) Return of investments in unconsolidated joint ventures — 4,307 — — 4,307 Purchases of property and equipment, net (4,052 ) (579 ) (153 ) — (4,784 ) Intercompany 144,651 — — (144,651 ) — Net cash provided by (used in) investing activities 140,599 (1,124 ) (903 ) (144,651 ) (6,079 ) Cash flows from financing activities: Change in restricted cash 9,344 — — — 9,344 Payments on mortgages and land contracts due to land sellers and other loans — (67,845 ) — — (67,845 ) Issuance of common stock under employee stock plans 5,343 — — — 5,343 Excess tax benefits from stock-based compensation 186 — — — 186 Stock repurchases (85,938 ) — — — (85,938 ) Tax payments associated with stock-based compensation awards (2,421 ) — — — (2,421 ) Payments of cash dividends (8,586 ) — — — (8,586 ) Intercompany — (108,039 ) (36,612 ) 144,651 — Net cash used in financing activities (82,072 ) (175,884 ) (36,612 ) 144,651 (149,917 ) Net increase in cash and cash equivalents 18,250 6,458 7,951 — 32,659 Cash and cash equivalents at beginning of year 444,850 99,445 16,046 — 560,341 Cash and cash equivalents at end of year $ 463,100 $ 105,903 $ 23,997 $ — $ 593,000 |
Quarterly Results (unaudited)
Quarterly Results (unaudited) | 12 Months Ended |
Nov. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (unaudited) | Quarterly Results (unaudited) The following tables present our consolidated quarterly results for the years ended November 30, 2018 and 2017 (in thousands, except per share amounts): First Quarter Second Quarter Third Quarter Fourth Quarter 2018 Revenues $ 871,623 $ 1,101,423 $ 1,225,347 $ 1,348,609 Gross profits 141,192 189,222 222,893 245,931 Inventory impairment and land option contract abandonment charges 4,985 6,526 8,414 9,069 Pretax income 46,045 78,308 114,676 128,936 Net income (loss) (a) (71,255 ) 57,308 87,476 96,836 Earnings (loss) per share: Basic $ (.82 ) $ .65 $ .99 $ 1.09 Diluted (.82 ) .57 .87 .96 2017 Revenues $ 818,596 $ 1,002,794 $ 1,144,001 $ 1,403,138 Gross profits 119,697 155,382 188,110 255,442 Inventory impairment and land option contract abandonment charges 4,008 6,001 8,113 7,110 Pretax income 21,459 51,982 79,208 137,346 Net income 14,259 31,782 50,208 84,346 Earnings per share: Basic $ .17 $ .37 $ .58 $ .97 Diluted .15 .33 .51 .84 (a) Net income (loss) included non-cash charges to income tax expense of $111.2 million in the first quarter and $1.3 million in the fourth quarter for TCJA-related impacts. Quarterly and year-to-date computations of per share amounts are made independently. Therefore, the sum of per share amounts for the quarters may not agree with per share amounts for the year. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Nov. 30, 2018 | |
Segment Reporting Information [Line Items] | |
Operations | Operations. KB Home is a builder of attached and detached single-family residential homes, townhomes and condominiums. As of November 30, 2018 , we conducted ongoing operations in Arizona, California, Colorado, Florida, Nevada, North Carolina, Texas and Washington. We also offer various insurance products to our homebuyers in the same markets where we build homes, and provide title services in the majority of our markets located within our Central and Southeast homebuilding reporting segments. Since June 2017, we have been providing mortgage banking services, including mortgage loan originations, to our homebuyers indirectly through KBHS, an unconsolidated joint venture we formed with Stearns in the 2016 fourth quarter. Until October 2016, we provided mortgage banking services, including mortgage loan originations, to our homebuyers indirectly through HCM, an unconsolidated joint venture we formed with Nationstar. |
Basis of Presentation | Basis of Presentation. Our consolidated financial statements have been prepared in accordance with GAAP and include our accounts and those of the consolidated subsidiaries in which we have a controlling financial interest. All intercompany balances and transactions have been eliminated in consolidation. Investments in unconsolidated joint ventures in which we have less than a controlling financial interest are accounted for using the equity method. |
Use of Estimates | 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 and Restricted Cash | 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. |
Property and Equipment and Depreciation | Property and Equipment and Depreciation. Property and equipment are recorded at cost and are depreciated over their estimated useful lives, which generally range from two to 10 years, using the straight-line method. Repair and maintenance costs are expensed as incurred. |
Homebuilding Operations | Homebuilding Operations. Revenues from housing and other real estate sales are recognized when sales are closed and title passes to the homebuyer. Sales are closed when all of the following conditions are met: a sale is consummated, a sufficient down payment is received, the earnings process is complete and the collection of any remaining receivables is reasonably assured. Concurrent with the recognition of revenues in our consolidated statements of operations, sales incentives in the form of price concessions on the selling price of a home are recorded as a reduction of revenues, while the costs of sales incentives in the form of free or discounted products or services to homebuyers, including option upgrades and closing cost allowances used to cover a portion of the fees and costs charged to a homebuyer, are reflected as construction and land costs. Construction and land costs are comprised of direct and allocated costs, including estimated future costs for the limited warranty we provide on our homes, and certain amenities within a community. Land acquisition, land development and other common costs are generally allocated on a relative fair value basis to the homes or lots within the applicable community or land parcel. Land acquisition and land development costs include related interest and real estate taxes. H ousing and land inventories are stated at cost, unless the carrying value is determined not to be recoverable, in which case the affected inventories are written down to fair value or fair value less associated costs to sell. Real estate assets, such as our housing and land inventories, are tested for recoverability whenever events or changes in circumstances indicate that their carrying value may not be recoverable. Recoverability is measured by comparing the carrying value of an asset to the undiscounted future net cash flows expected to be generated by the asset. These impairment evaluations are significantly impacted by estimates for the amounts and timing of future revenues, costs and expenses, and other factors. If the carrying value of a real estate asset is determined not to be recoverable, the impairment charge to be recognized is measured by the amount by which the carrying value of the affected asset exceeds its estimated fair value. For land held for sale, if the fair value less associated costs to sell exceeds the asset’s carrying value, no impairment charge is recognized. |
Capitalized Interest | Capitalized Interest. 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). For land held for future development or sale, applicable interest is expensed as incurred. |
Fair Value Measurements | Fair Value Measurements. Fair value measurements are used for inventories on a nonrecurring basis when events and circumstances indicate that their carrying value is not recoverable. For these real estate assets, fair value is determined based on the estimated future net cash flows discounted for inherent risk associated with each such asset, or other valuation techniques. Our financial instruments consist of cash and cash equivalents, senior notes, convertible senior notes, and mortgages and land contracts due to land sellers and other loans. Fair value measurements of financial instruments are determined by various market data and other valuation techniques as appropriate. When available, we use quoted market prices in active markets to determine fair value. |
Warranty Costs | Warranty Costs. We provide a limited warranty on all of our homes. 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 and adjust the amount as necessary based on our assessment. Our warranty liability is presented on a gross basis for all years 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. |
Self-Insurance | Self-Insurance. We self-insure a portion of our overall risk through the use of a captive insurance subsidiary. We record liabilities based on the estimated costs required to cover reported claims, claims incurred but not yet reported, and claim adjustment expenses. These estimated costs are based on an actuarial analysis of our historical claims and expense data, as well as industry data. Our self-insurance liability is presented on a gross basis for all years without consideration of insurance recoveries and amounts we have paid on behalf of and expect to recover from other parties, if any . Estimates of insurance 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. |
Advertising Costs | Advertising Costs. We expense advertising costs as incurred. |
Legal Fees | Legal Fees. Legal fees associated with litigation and similar proceedings that are not expected to provide a benefit in future periods are generally expensed as incurred. Legal fees associated with land acquisition and development and other activities that are expected to provide a benefit in future periods are capitalized to inventories in our consolidated balance sheets as incurred. |
Stock-Based Compensation | Stock-Based Compensation. We measure and recognize compensation expense associated with our grant of equity-based awards at an amount equal to the fair value of share-based payments granted under compensation arrangements over the vesting period. We estimate the fair value of stock options and Director Plan SARs granted using the Black-Scholes option-pricing model with assumptions based primarily on historical data. |
Income Taxes | Income Taxes. The provision for, or benefit from, income taxes is calculated using the asset and liability method, under which deferred tax assets and liabilities are recorded based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are evaluated on a quarterly basis to determine if adjustments to the valuation allowance are required. This evaluation is 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. 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 in our consolidated balance sheets depends on applicable income tax rates. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss. The accumulated balances of other comprehensive loss in the consolidated balance sheets as of November 30, 2018 and 2017 were comprised solely of adjustments recorded directly to accumulated other comprehensive loss related to our benefit plan obligations. Such adjustments are made annually as of November 30, when our benefit plan obligations are remeasured. |
Earnings Per Share | 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 November 30, 2018 , 2017 or 2016 . |
Adoption of New Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Adopted | Adoption of New Accounting Pronouncements . In March 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-09, which simplified several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of excess tax benefits on the statement of cash flows, treatment of forfeitures, and statutory withholding requirements. We adopted this guidance effective December 1, 2017. ASU 2016-09 requires excess tax benefits and deficiencies from stock-based compensation awards to be recognized prospectively in our consolidated statements of operations as a component of income tax expense, whereas these items were previously recorded in paid-in capital in our consolidated balance sheets. This guidance also requires excess tax benefits to be classified within operating activities in the consolidated statements of cash flows. We previously recognized excess tax benefits as a cash inflow from financing activities and a corresponding cash outflow from operating activities. In connection with the adoption of this guidance, we elected to continue to estimate forfeitures in calculating our stock-based compensation expense, rather than account for forfeitures as they occur. The impact of recognizing excess tax benefits and deficiencies in our consolidated statements of operations resulted in reductions in our income tax expense of $1.0 million for 2018. The remaining aspects of adopting this guidance did not have a material impact on our consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business” (“ASU 2017-01”). ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 is effective for annual and interim periods beginning after December 15, 2017 (with early adoption permitted). Our early adoption of this guidance in the 2018 third quarter did not have a material impact on our consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 supersedes the revenue guidance in Accounting Standards Codification Topic 605, “Revenue Recognition,” and most industry-specific revenue and cost guidance in the accounting standards codification, including some cost guidance related to construction-type and production-type contracts. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a principles-based, five-step model to be applied to contracts with customers in determining the timing and amount of revenue to recognize: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract, if applicable; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The guidance requires more management judgment and estimates than currently applicable guidance to determine the appropriate revenue recognition, including with respect to identifying the performance obligations in the contract, estimating the amount of variable consideration, if any, to include in the transaction price, and allocating the transaction price to the applicable performance obligations, among other things. ASU 2014-09 and its related amendments (collectively, “ASC 606”) are effective for us beginning December 1, 2018. We intend to adopt ASC 606 under the modified retrospective method applied to contracts that are not complete as of the date of adoption. As a result, we expect to record a cumulative effect adjustment to increase beginning retained earnings as of December 1, 2018 by approximately $12 million , net of tax. This cumulative effect adjustment is primarily related to the recognition of a contract asset for estimated future renewal commissions related to existing insurance policies as of December 1, 2018, partly offset by the impact from changes in the recognition of certain community sales office and other marketing- and model home-related costs, as described below. We do not expect the adoption of ASC 606 to have a material impact on our recognition of homebuilding revenues in our consolidated financial statements. The primary impacts to our consolidated financial statements are expected to be the following: • Within our homebuilding operations, ASC 606 will impact the classification and timing of recognition in our consolidated financial statements of certain community sales office and other marketing- and model home-related costs, which we currently capitalize to inventories and amortize through construction and land costs with each home delivered in a community. Under ASC 606, these costs will be capitalized to property and equipment and depreciated to selling, general and administrative expenses, or will be expensed as incurred. Upon adopting ASC 606, we will reclassify certain of these community sales office and other marketing- and model home-related costs from inventories to property and equipment in our consolidated financial statements. The change in the classification and timing of these costs will also result in lower construction and land costs, and higher selling, general and administrative expenses, as compared to amounts reported under the existing guidance. In addition, under ASC 606, forfeited customer deposits, which are currently reflected as other income, will be included in revenues. • Within our financial services operations, ASC 606 will impact the timing of recognition of insurance commissions for insurance policy renewals. We currently recognize insurance commissions for renewals as revenue when policies are renewed by homeowners. Under ASC 606, insurance commissions for estimated future policy renewals will be recognized as revenue when the customer executes an initial insurance policy with the insurance carrier. Upon adopting ASC 606, we will record a contract asset for the estimated future renewal commissions related to existing policies as of December 1, 2018. While individual financial statement line items may be affected, we currently believe the adoption of ASC 606 will not have a material impact on our consolidated net income on an ongoing basis. In addition, we do not expect significant changes to our business processes or internal control over financial reporting as a result of the adoption. We are also continuing to evaluate the impact that adopting this guidance may have on other aspects of our business. Our assessment of the impacts of ASC 606 will be finalized in the 2019 first quarter. As a result of adopting this new standard, there will be significant changes to our disclosures based on the additional requirements prescribed by ASC 606. These new disclosure requirements include information regarding disaggregation of revenue; contract balances, including changes during the reporting period; performance obligations; significant judgments; and assets recognized to obtain or fulfill a contract. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). ASU 2016-02 will require lessees to recognize on the balance sheet the assets and liabilities for the rights and obligations created by leases. Under this guidance, a lessee will be required to recognize right-of-use assets and liabilities for leases with original lease terms of more than 12 months. Lessor accounting remains substantially similar to current GAAP. In addition, disclosures of leasing activities are to be expanded to include qualitative along with specific quantitative information. ASU 2016-02 is effective for us beginning December 1, 2019 (with early adoption permitted). Originally, entities were required to adopt ASU 2016-02 using a modified retrospective transition method. However, in July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements,” which provides entities with an additional transition method. Under ASU 2018-11, entities have the option of recognizing the cumulative effect of applying the new standard as an adjustment to beginning retained earnings in the year of adoption while continuing to present all prior periods under previous lease accounting guidance. In July 2018, the FASB also issued Accounting Standards Update No. 2018-10, “Codification Improvements to Topic 842, Leases” (“ASU 2018-10”), which clarifies how to apply certain aspects of ASU 2016-02. We expect to adopt ASU 2016-02, ASU 2018-10 and ASU 2018-11 beginning December 1, 2019. We are currently evaluating the potential impact of adopting this guidance on our consolidated financial statements. In February 2018, the FASB issued Accounting Standards Update No. 2018-02, “Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”), which allows a reclassification from accumulated other comprehensive income (loss) to retained earnings for stranded tax effects resulting from the TCJA, and requires certain disclosures about stranded tax effects. ASU 2018-02 is effective for us beginning December 1, 2019 (with early adoption permitted), and shall be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the corporate income tax rate in the TCJA is recognized. We are currently evaluating the potential impact of adopting this guidance on our consolidated financial statements. Reclassifications. Certain amounts in our consolidated financial statements of prior years have been reclassified to conform to the current period presentation. |
Segment Reporting | four homebuilding reporting segments based primarily on similarities in economic and geographic characteristics, product types, regulatory environments, methods used to sell and construct homes and land acquisition characteristics. We also have one financial services reporting segment. Management evaluates segment performance primarily based on segment pretax results. As of November 30, 2018 , our homebuilding reporting segments conducted ongoing operations in the following states: West Coast: California 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. In the 2018 third quarter, we expanded into the state of Washington with our entrance into the Seattle market. In 2016, we announced that we had begun a transition out of the Metro Washington, D.C. market which was substantially completed in 2017. Our operations in the Metro Washington, D.C. market consisted of communities in Maryland and Virginia, which were included in our Southeast homebuilding reporting segment, and represented 2% of our consolidated homebuilding revenues for the year ended November 30, 2016. As described in Note 7 – Inventory Impairments and Land Option Contract Abandonments, we recorded inventory impairment and land option contract abandonment charges related to this transition during the year ended November 30, 2016. 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 Central and Southeast homebuilding reporting segments. This segment earns revenues primarily from insurance commissions and from the provision of title services. Until October 2016, we provided mortgage banking services, including mortgage loan originations, to our homebuyers indirectly through HCM, an unconsolidated joint venture we formed with Nationstar. We have a 49.9% ownership interest and Nationstar has a 50.1% ownership interest in HCM, with Nationstar providing management oversight of HCM’s operations. In the 2016 fourth quarter, we and Nationstar began the process to wind down HCM and transfer HCM’s operations and certain assets to Stearns. In 2016, we and Stearns formed KBHS, an unconsolidated mortgage banking joint venture, to offer mortgage banking services, including mortgage loan originations, to our homebuyers. We and Stearns each have a 50.0% ownership interest, with Stearns providing management oversight of KBHS’ operations. KBHS was operational in all of our served markets as of June 2017. KBHS did not have an impact on our consolidated statement of operations for the year ended November 30, 2016. Our homebuyers may select any lender of their choice to obtain mortgage financing for the purchase of their home. The financial services reporting segment is separately reported in our consolidated financial statements. Corporate and other is a non-operating segment that develops and oversees the implementation of company-wide strategic initiatives and provides support to our reporting segments by centralizing certain administrative functions. Corporate management is responsible for, among other things, evaluating and selecting the geographic markets in which we operate, consistent with our overall business strategy; allocating capital resources to markets for land acquisition and development activities; making major personnel decisions related to employee compensation and benefits; and monitoring the financial and operational performance of our divisions. Corporate and other includes general and administrative expenses related to operating our corporate headquarters. A portion of the expenses incurred by Corporate and other is allocated to our homebuilding reporting segments. Our reporting segments follow the same accounting policies used for our consolidated financial statements as described in Note 1 – Summary of Significant Accounting Policies. 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. |
Inventory Impairment | E ach community or land parcel in our owned inventory is assessed to determine if indicators of potential impairment exist. Impairment indicators are assessed separately for each community or land parcel on a quarterly basis and include, but are not limited to, the following: significant decreases in net orders, average selling prices, volume of homes delivered, gross profit margins on homes delivered or projected gross profit margins on homes in backlog or future deliveries; significant increases in budgeted land development and home construction costs or cancellation rates; or projected losses on expected future land sales. If indicators of potential impairment exist for a community or land parcel, the identified asset is evaluated for recoverability. |
Land under Option Arrangements | Our inventory controlled under land option contracts and other similar contracts is assessed to determine whether it continues to meet our investment return standards. Assessments are made separately for each optioned land parcel on a quarterly basis and are affected by the following factors relative to the market in which the asset is located, among others: current and/or anticipated net orders, average selling prices and volume of homes delivered; estimated land development and home construction costs; and projected profitability on expected future housing or land sales. 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. |
Financial services [Member] | |
Segment Reporting Information [Line Items] | |
Operations | Financial Services Operations. Our financial services reporting segment generates revenues primarily from insurance commissions and title services. Revenues from insurance commissions and title services are recognized when policies are issued, which generally occurs at the time each applicable home is closed. Revenues from insurance commissions are also recognized when homeowners renew their policies. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Segment Reporting [Abstract] | |
Financial information relating to company reporting segments | The following tables present financial information relating to our homebuilding reporting segments (in thousands): Years Ended November 30, 2018 2017 2016 Revenues: West Coast $ 2,085,328 $ 2,186,411 $ 1,638,078 Southwest 707,075 533,052 447,473 Central 1,239,305 1,188,839 1,018,535 Southeast 502,087 447,963 478,857 Total $ 4,533,795 $ 4,356,265 $ 3,582,943 Pretax income (loss): West Coast $ 240,337 $ 217,649 $ 148,014 Southwest 91,017 45,540 38,807 Central 117,609 116,098 85,924 Southeast 7,624 (509 ) (29,385 ) Corporate and other (105,286 ) (101,851 ) (98,511 ) Total $ 351,301 $ 276,927 $ 144,849 Equity in income (loss) of unconsolidated joint ventures: West Coast $ (966 ) $ (1,770 ) $ (1,561 ) Southwest 3,033 362 (618 ) Central — — — Southeast (1 ) (1 ) (2 ) Total $ 2,066 $ (1,409 ) $ (2,181 ) Inventory impairment charges: West Coast $ 19,169 $ 13,482 $ 8,209 Southwest — 3,445 3,191 Central 1,463 — 10,633 Southeast 5,472 3,678 27,547 Total $ 26,104 $ 20,605 $ 49,580 Land option contract abandonment charges: West Coast $ 1,212 $ 3,225 $ 769 Southwest 432 — 253 Central 1,095 846 460 Southeast 151 556 1,750 Total $ 2,890 $ 4,627 $ 3,232 November 30, 2018 2017 Inventories: Homes under construction West Coast $ 514,099 $ 638,639 Southwest 173,036 179,240 Central 312,366 320,205 Southeast 125,651 98,764 Subtotal 1,125,152 1,236,848 Land under development West Coast 1,059,432 723,761 Southwest 404,201 309,672 Central 543,472 435,373 Southeast 212,831 182,533 Subtotal 2,219,936 1,651,339 Land held for future development or sale West Coast 154,462 233,188 Southwest 21,137 62,475 Central 9,346 12,654 Southeast 52,806 66,882 Subtotal 237,751 375,199 Total $ 3,582,839 $ 3,263,386 Investments in unconsolidated joint ventures: West Coast $ 56,128 $ 53,506 Southwest 3,327 8,784 Central — — Southeast 2,505 2,504 Total $ 61,960 $ 64,794 Assets: West Coast $ 1,880,516 $ 1,747,786 Southwest 631,509 586,666 Central 1,017,490 901,516 Southeast 463,224 359,307 Corporate and other 1,068,452 1,433,883 Total $ 5,061,191 $ 5,029,158 |
Financial Services (Tables)
Financial Services (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Segment Reporting Information [Line Items] | |
Financial services income loss | The following tables present financial information relating to our financial services reporting segment (in thousands): Years Ended November 30, 2018 2017 2016 Revenues Insurance commissions $ 7,535 $ 6,991 $ 6,728 Title services 5,672 5,268 4,975 Interest income — 5 — Total 13,207 12,264 11,703 Expenses General and administrative (3,844 ) (3,430 ) (3,817 ) Operating income 9,363 8,834 7,886 Equity in income (loss) of unconsolidated joint ventures 7,301 4,234 (3,420 ) Pretax income $ 16,664 $ 13,068 $ 4,466 |
Financial services [Member] | |
Segment Reporting Information [Line Items] | |
Financial services assets liabilities | November 30, 2018 2017 Assets Cash and cash equivalents $ 760 $ 231 Receivables 2,885 1,724 Investments in unconsolidated joint ventures (a) 8,594 10,340 Other assets 141 62 Total assets $ 12,380 $ 12,357 Liabilities Accounts payable and accrued expenses $ 1,495 $ 966 Total liabilities $ 1,495 $ 966 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
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): Years Ended November 30, 2018 2017 2016 Numerator: Net income $ 170,365 $ 180,595 $ 105,615 Less: Distributed earnings allocated to nonvested restricted stock (51 ) (56 ) (45 ) Less: Undistributed earnings allocated to nonvested restricted stock (927 ) (1,121 ) (508 ) Numerator for basic earnings per share 169,387 179,418 105,062 Effect of dilutive securities: Interest expense and amortization of debt issuance costs associated with convertible senior notes, net of taxes 3,190 2,654 2,667 Add: Undistributed earnings allocated to nonvested restricted stock 927 1,121 508 Less: Undistributed earnings reallocated to nonvested restricted stock (805 ) (979 ) (453 ) Numerator for diluted earnings per share $ 172,699 $ 182,214 $ 107,784 Denominator: Weighted average shares outstanding — basic 87,773 85,842 85,706 Effect of dilutive securities: Share-based payments 4,884 4,072 2,170 Convertible senior notes 8,402 8,402 8,402 Weighted average shares outstanding — diluted 101,059 98,316 96,278 Basic earnings per share $ 1.93 $ 2.09 $ 1.23 Diluted earnings per share $ 1.71 $ 1.85 $ 1.12 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Receivables consisted of the following (in thousands): November 30, 2018 2017 Recoveries related to self-insurance and other legal claims $ 138,261 $ 91,763 Due from utility companies, improvement districts and municipalities (a) 113,434 113,744 Refundable deposits and bonds 14,115 13,829 Recoveries related to warranty and other claims 4,750 4,073 Other 33,775 33,797 Subtotal 304,335 257,206 Allowance for doubtful accounts (11,505 ) (12,993 ) Total $ 292,830 $ 244,213 (a) These receivables typically relate to infrastructure improvements we make with respect to our communities. We are generally reimbursed for the cost of such improvements when they are accepted by the utility company, improvement district or municipality, or after certain events occur, depending on the terms of the applicable agreements. These events may include, but are not limited to, the connection of utilities or the issuance of bonds by the respective improvement districts or municipalities. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following (in thousands): November 30, 2018 2017 Homes under construction $ 1,125,152 $ 1,236,848 Land under development 2,219,936 1,651,339 Land held for future development or sale (a) 237,751 375,199 Total $ 3,582,839 $ 3,263,386 |
Interest costs | Our interest costs were as follows (in thousands): Years Ended November 30, 2018 2017 2016 Capitalized interest at beginning of year $ 262,191 $ 306,723 $ 288,442 Interest incurred (a) 149,698 177,171 185,466 Interest expensed (a) — (6,307 ) (5,900 ) Interest amortized to construction and land costs (b) (202,760 ) (215,396 ) (161,285 ) Capitalized interest at end of year (c) $ 209,129 $ 262,191 $ 306,723 (a) Interest incurred and interest expensed for the year ended November 30, 2017 included a charge of $5.7 million for the early extinguishment of debt. (b) Interest amortized to construction and land costs for the years ended November 30, 2018 , 2017 and 2016 included $4.8 million , $4.9 million and $.7 million , respectively, related to land sales during the periods. (c) Capitalized interest amounts presented in the table reflect the gross amount of capitalized interest, as inventory impairment charges recognized, if any, are not generally allocated to specific components of inventory. |
Inventory Impairments and Lan_2
Inventory Impairments and Land Option Contract Abandonments (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Inventory Impairments and Land Option Contract Abandonments [Abstract] | |
Schedule of significant unobservable inputs | The following table summarizes ranges for significant quantitative unobservable inputs we utilized in our fair value measurements with respect to impaired communities, other than land held for sale, written down to fair value during the years presented: Years Ended November 30, Unobservable Input (a) 2018 2017 2016 Average selling price $291,300 - $774,100 $207,100 - $1,576,500 $216,200 - $977,400 Deliveries per month 2 - 6 1 - 4 1 - 4 Discount rate 17% - 19% 17% - 18% 17% - 20% (a) The ranges of inputs used in each period primarily reflect differences between the housing markets where each impacted community is located, rather than fluctuations in prevailing market conditions. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
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): November 30, 2018 November 30, 2017 Cash Deposits Aggregate Purchase Price Cash Deposits Aggregate Purchase Price Unconsolidated VIEs $ 26,542 $ 784,334 $ 43,171 $ 653,858 Other land option contracts and other similar contracts 27,288 586,904 21,531 440,229 Total $ 53,830 $ 1,371,238 $ 64,702 $ 1,094,087 |
Investments in Unconsolidated_2
Investments in Unconsolidated Joint Ventures (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Statements of operations of unconsolidated joint ventures | The following table presents combined condensed information from the statements of operations of our unconsolidated joint ventures (in thousands): Years Ended November 30, 2018 2017 2016 Revenues $ 59,418 $ 47,431 $ 46,389 Construction and land costs (46,288 ) (47,459 ) (50,566 ) Other expenses, net (2,674 ) (4,749 ) (4,465 ) Income (loss) $ 10,456 $ (4,777 ) $ (8,642 ) |
Balance sheets of unconsolidated joint ventures | The following table presents combined condensed balance sheet information for our unconsolidated joint ventures (in thousands): November 30, 2018 2017 Assets Cash $ 18,567 $ 21,193 Receivables 9 688 Inventories 131,074 145,519 Other assets 521 1,398 Total assets $ 150,171 $ 168,798 Liabilities and equity Accounts payable and other liabilities $ 11,374 $ 25,426 Notes payable (a) 17,956 20,040 Equity 120,841 123,332 Total liabilities and equity $ 150,171 $ 168,798 (a) As of November 30, 2017, two of our unconsolidated joint ventures had separate construction loan agreements with different third-party lenders to finance their respective land development activities, with the outstanding debt secured by the corresponding underlying property and related project assets and non-recourse to us. The secured debt of one of these unconsolidated joint ventures was repaid in August 2018 upon maturity. All of the outstanding secured debt at November 30, 2018 is scheduled to mature in February 2020. None of our other unconsolidated joint ventures had outstanding debt at November 30, 2018 or 2017 . |
Information related investments in unconsolidated joint ventures | The following table presents additional information relating to our investments in unconsolidated joint ventures (dollars in thousands): November 30, 2018 2017 Number of investments in unconsolidated joint ventures 6 7 Investments in unconsolidated joint ventures $ 61,960 $ 64,794 Number of unconsolidated joint venture lots controlled under land option contracts and other similar contracts 36 377 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Other Assets [Abstract] | |
Other Assets | Other assets consisted of the following (in thousands): November 30, 2018 2017 Cash surrender value of corporate-owned life insurance contracts $ 73,721 $ 75,236 Property and equipment, net 24,283 19,521 Prepaid expenses 7,647 5,360 Debt issuance costs associated with unsecured revolving credit facility 1,732 2,381 Total $ 107,383 $ 102,498 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consisted of the following (in thousands): November 30, 2018 2017 Self-insurance and other legal liabilities $ 283,651 $ 222,808 Employee compensation and related benefits 148,549 143,992 Warranty liability 82,490 69,798 Inventory-related obligations (a) 40,892 30,108 Accrued interest payable 31,180 39,518 Customer deposits 19,491 16,863 Real estate and business taxes 16,639 16,874 Other 43,376 35,969 Total $ 666,268 $ 575,930 (a) Represents liabilities for financing arrangements discussed in Note 8 – Variable Interest Entities, as well as liabilities for fixed or determinable amounts associated with 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. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Component of income tax benefit (expense) in the consolidated statement of operations | The components of the income tax expense in our consolidated statements of operations are as follows (in thousands): Federal State Total 2018 Current $ (3,600 ) $ (4,800 ) $ (8,400 ) Deferred (170,700 ) (18,500 ) (189,200 ) Income tax expense $ (174,300 ) $ (23,300 ) $ (197,600 ) 2017 Current $ (2,800 ) $ (3,000 ) $ (5,800 ) Deferred (86,300 ) (17,300 ) (103,600 ) Income tax expense $ (89,100 ) $ (20,300 ) $ (109,400 ) 2016 Current $ (1,900 ) $ (1,000 ) $ (2,900 ) Deferred (28,700 ) (12,100 ) (40,800 ) Income tax expense $ (30,600 ) $ (13,100 ) $ (43,700 ) |
Components of deferred tax liabilities and assets | Significant components of our deferred tax liabilities and assets are as follows (in thousands): November 30, 2018 2017 Deferred tax liabilities: Capitalized expenses $ 51,660 $ 98,147 State taxes 31,246 59,174 Other 225 313 Total 83,131 157,634 Deferred tax assets: NOLs from 2006 through 2018 121,432 236,273 Tax credits 231,100 208,841 Inventory impairment and land option contract abandonment charges 67,416 139,737 Employee benefits 45,802 100,200 Warranty, legal and other accruals 43,213 60,238 Capitalized expenses 27,894 39,195 Partnerships and joint ventures 6,368 14,784 Depreciation and amortization 1,869 7,333 Other 3,457 8,270 Total 548,551 814,871 Valuation allowance (23,600 ) (23,600 ) Total 524,951 791,271 Deferred tax assets, net $ 441,820 $ 633,637 |
Income tax benefit computed at the statutory U.S. federal income tax rate and income tax benefit (expense) provided in the consolidated statements of operations | The income tax expense computed at the statutory U.S. federal income tax rate and the income tax expense provided in our consolidated statements of operations differ as follows (dollars in thousands): Years Ended November 30, 2018 2017 2016 $ % $ % $ % Income tax expense computed at statutory rate $ (81,689 ) (22.2 )% $ (101,499 ) (35.0 )% $ (52,260 ) (35.0 )% Tax credits 14,177 3.9 6,227 2.2 4,447 3.0 Valuation allowance for deferred tax assets 2,000 .5 1,200 .4 12,982 8.7 Depreciation and amortization 1,223 .3 362 .1 1,842 1.2 State taxes, net of federal income tax benefit (20,155 ) (5.5 ) (14,450 ) (4.9 ) (7,511 ) (5.0 ) TCJA adjustment (112,458 ) (30.5 ) — — — — NOL reconciliation — — (2,210 ) (.8 ) (3,691 ) (2.5 ) Other, net (698 ) (.2 ) 970 .3 491 .3 Income tax expense $ (197,600 ) (53.7 )% $ (109,400 ) (37.7 )% $ (43,700 ) (29.3 )% |
Reconciliation of the beginning and ending balances of the gross unrecognized benefits | A reconciliation of the beginning and ending balances of gross unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands): Years Ended November 30, 2018 2017 2016 Balance at beginning of year $ 56 $ 56 $ 56 Reductions due to lapse of statute of limitations (56 ) — — Balance at end of year $ — $ 56 $ 56 |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Debt Disclosure [Abstract] | |
Mortgages and Notes Payable | The key terms of each of our senior notes outstanding as of November 30, 2018 were as follows (dollars in thousands): Redeemable Prior to Maturity Effective Interest Rate Notes Payable Principal Issuance Date Maturity Date 4.75% Senior notes $ 400,000 March 25, 2014 May 15, 2019 Yes (a) 5.0 % 8.00% Senior notes 350,000 February 7, 2012 March 15, 2020 Yes (b) 8.5 7.00% Senior notes 450,000 October 29, 2013 December 15, 2021 Yes (a) 7.2 7.50% Senior notes 350,000 July 31, 2012 September 15, 2022 Yes (b) 7.7 7.625% Senior notes 250,000 February 17, 2015 May 15, 2023 Yes (a) 7.8 1.375% Convertible senior notes 230,000 January 29, 2013 February 1, 2019 Yes (c) 1.9 (a) At our option, these notes may be redeemed, in whole at any time or from time to time in part, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes being redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the notes being redeemed (exclusive of interest accrued to the applicable redemption date), discounted to the redemption date at a defined rate, plus, in each case, accrued and unpaid interest on the notes being redeemed to, but excluding, the applicable redemption date, except that three months prior to the stated maturity dates for the 4.75% Senior Notes due 2019 and the 7.00% Senior Notes due 2021 and until their respective maturity, and six months prior to the stated maturity date for the 7.625% Senior Notes due 2023 and until their maturity, the redemption price will be equal to 100% of the principal amount of the notes being redeemed, plus, in each case, accrued and unpaid interest on the notes being redeemed to, but excluding, the applicable redemption date. (b) At our option, these notes may be redeemed, in whole at any time or from time to time in part, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes being redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the notes being redeemed (exclusive of interest accrued to the applicable redemption date), discounted to the redemption date at a defined rate, plus, in each case, accrued and unpaid interest on the notes being redeemed to the applicable redemption date. (c) Prior to the stated maturity date, we may, at our option, redeem all or part of the notes at a redemption price equal to 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest to, but excluding, the redemption date. Notes payable consisted of the following (in thousands): November 30, 2018 2017 Mortgages and land contracts due to land sellers and other loans (at interest rates of 7% at November 30, 2018 and 3% to 6% at November 30, 2017) $ 40,038 $ 10,203 7 1/4% Senior notes due June 15, 2018 — 299,867 4.75% Senior notes due May 15, 2019 399,483 398,397 8.00% Senior notes due March 15, 2020 347,790 346,238 7.00% Senior notes due December 15, 2021 447,359 446,608 7.50% Senior notes due September 15, 2022 347,731 347,234 7.625% Senior notes due May 15, 2023 248,074 247,726 1.375% Convertible senior notes due February 1, 2019 229,788 228,572 Total $ 2,060,263 $ 2,324,845 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets measured at fair value on a nonrecurring basis | The following table presents the fair value hierarchy and our assets measured at fair value on a nonrecurring basis (in thousands): November 30, 2018 November 30, 2017 Description Fair Value Hierarchy Pre-Impairment Value Inventory Impairment Charges Fair Value (a) Pre-Impairment Value Inventory Impairment Charges Fair Value (a) Inventories (a) Level 3 $ 70,156 $ (26,104 ) $ 44,052 $ 58,962 $ (20,605 ) $ 38,357 (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. |
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): November 30, 2018 2017 Description Fair Value Hierarchy Carrying Value (a) Estimated Fair Value Carrying Value (a) Estimated Fair Value Financial Liabilities: Senior notes Level 2 $ 1,790,437 $ 1,853,438 $ 2,086,070 $ 2,292,250 Convertible senior notes Level 2 229,788 229,425 228,572 278,300 (a) The carrying values for the senior notes and convertible 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 (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | The changes in our warranty liability were as follows (in thousands): Years Ended November 30, 2018 2017 2016 Balance at beginning of year $ 69,798 $ 56,682 $ 49,085 Warranties issued 37,792 38,452 30,135 Payments (a) (23,300 ) (25,336 ) (23,190 ) Adjustments (1,800 ) — 652 Balance at end of year $ 82,490 $ 69,798 $ 56,682 (a) Payments for 2016 included $2.3 million to repair homes affected by water intrusion-related issues in certain of our communities in central and southwest Florida. |
Schedule of Self-Insurance Liability | The changes in our self-insurance liability were as follows (in thousands): Years Ended November 30, 2018 2017 2016 Balance at beginning of year $ 177,695 $ 158,584 $ 173,011 Self-insurance expense (a) 20,436 20,371 24,808 Payments (b) (21,290 ) (22,933 ) (39,235 ) Adjustments (c) — 21,673 — Balance at end of year $ 176,841 $ 177,695 $ 158,584 (a) These expenses are included in selling, general and administrative expenses and are largely offset by contributions from independent subcontractors participating in the wrap-up policy. (b) Includes net changes in estimated probable insurance and other recoveries, which are recorded in receivables, to present our self-insurance liability on a gross basis. (c) The amount for 2017 reflected a change in estimate to increase our self-insurance liability based on an actuarially determined estimate that we believed had a higher probability of being adequate to cover future payments associated with unresolved claims, including claims incurred but not yet reported. This adjustment was included in selling, general and administrative expenses. |
Schedule of Future Minimum Rental Payments for Operating Leases | The future minimum rental payments under operating leases, which primarily consist of office leases having initial or remaining noncancelable lease terms in excess of one year , are as follows: 2019 — $8.7 million ; 2020 — $6.4 million ; 2021 — $4.3 million ; 2022 — $2.9 million ; 2023 — $2.3 million ; and thereafter — $4.3 million . Re |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Equity [Abstract] | |
Changes in the balances of each component of accumulated other comprehensive loss | The following table presents the changes in the balances of each component of accumulated other comprehensive loss (in thousands): Postretirement Benefit Plan Adjustments Total Accumulated Other Comprehensive Loss Balance at November 30, 2016 $ (16,057 ) Other comprehensive loss before reclassifications (3,143 ) Amounts reclassified from accumulated other comprehensive loss 1,698 Income tax benefit related to items of other comprehensive loss 578 Other comprehensive loss, net of tax (867 ) Balance at November 30, 2017 (16,924 ) Other comprehensive income before reclassifications 8,216 Amounts reclassified from accumulated other comprehensive loss 1,892 Income tax expense related to items of other comprehensive income (2,749 ) Other comprehensive income, net of tax 7,359 Balance at November 30, 2018 $ (9,565 ) |
Amounts reclassified from accumulated other comprehensive loss | The amounts reclassified from accumulated other comprehensive loss consisted of the following (in thousands): Years Ended November 30, Details About Accumulated Other Comprehensive Loss Components 2018 2017 2016 Postretirement benefit plan adjustments Amortization of net actuarial loss $ 336 $ 142 $ 79 Amortization of prior service cost 1,556 1,556 1,556 Total reclassifications (a) $ 1,892 $ 1,698 $ 1,635 (a) The accumulated other comprehensive loss components are included in the computation of net periodic benefit costs as further discussed in Note 20 – Postretirement Benefits. |
Employee Benefit and Stock Pl_2
Employee Benefit and Stock Plans (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation Expense | The following table presents our stock-based compensation expense (in thousands): Years Ended November 30, 2018 2017 2016 Stock options $ 917 $ 2,592 $ 7,076 Restricted stock 4,600 4,177 2,630 PSUs 8,790 6,439 5,343 Director awards 1,554 1,425 1,801 Total $ 15,861 $ 14,633 $ 16,850 |
Stock option transactions | Stock option transactions are summarized as follows: Years Ended November 30, 2018 2017 2016 Options Weighted Average Exercise Price Options Weighted Average Exercise Price Options Weighted Average Exercise Price Options outstanding at beginning of year 9,265,240 $ 17.64 12,731,545 $ 18.95 12,635,644 $ 19.39 Granted — — — — 1,012,686 16.21 Exercised (1,195,926 ) 16.73 (1,650,360 ) 16.01 (551,898 ) 13.95 Cancelled (831,770 ) 33.05 (1,815,945 ) 28.31 (364,887 ) 34.07 Options outstanding at end of year 7,237,544 $ 16.02 9,265,240 $ 17.64 12,731,545 $ 18.95 Options exercisable at end of year 6,948,670 $ 16.01 8,307,632 $ 17.86 10,506,810 $ 19.70 Options available for grant at end of year 6,418,197 7,495,792 7,034,523 |
Stock options outstanding and stock options exercisable | Stock options outstanding and stock options exercisable at November 30, 2018 are summarized as follows: Options Outstanding Options Exercisable Range of Exercise Price Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life $ 6.32 to $11.05 1,201,167 $ 6.36 2.9 1,201,167 $ 6.36 $11.06 to $14.62 2,048,758 12.99 4.0 2,048,758 12.99 $14.63 to $16.20 1,906,964 15.14 4.1 1,906,964 15.14 $16.21 to $28.10 1,300,596 16.35 6.8 1,011,722 16.39 $28.11 to $45.68 780,059 40.46 0.8 780,059 40.46 $ 6.32 to $45.68 7,237,544 $ 16.02 4.0 6,948,670 $ 16.01 3.8 |
Assumptions of Black-Scholes option-pricing model | The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: Years Ended November 30, 2018 2017 2016 Risk-free interest rate — — 1.3 % Expected volatility factor — — 41.3 % Expected dividend yield — — .6 % Expected term — — 5 years |
Restricted stock transactions | Restricted stock transactions are summarized as follows: Years Ended November 30, 2018 2017 2016 Shares Weighted Average per Share Grant Date Fair Value Shares Weighted Average per Share Grant Date Fair Value Shares Weighted Average per Share Grant Date Fair Value Outstanding at beginning of year 503,926 $ 21.69 604,619 $ 16.24 416,977 $ 15.88 Granted 303,030 23.05 321,835 24.49 453,703 15.73 Vested (221,951 ) 19.79 (364,670 ) 16.09 (252,854 ) 14.78 Cancelled (29,548 ) 21.76 (57,858 ) 15.61 (13,207 ) 15.12 Outstanding at end of year 555,457 $ 23.19 503,926 $ 21.69 604,619 $ 16.24 |
Schedule of Share Based Payments Performance Shares Activity | PSU transactions are summarized as follows: Years Ended November 30, 2018 2017 2016 Shares Weighted Average per Share Grant Date Fair Value Shares Weighted Average per Share Grant Date Fair Value Shares Weighted Average per Share Grant Date Fair Value Outstanding at beginning of year 925,232 $ 20.09 809,860 $ 17.19 820,209 $ 15.52 Granted 603,424 25.70 424,797 22.99 369,281 13.81 Vested (437,689 ) 31.28 (278,460 ) 16.67 (374,630 ) 10.21 Cancelled — — (30,965 ) 14.92 (5,000 ) 16.21 Outstanding at end of year 1,090,967 $ 18.70 925,232 $ 20.09 809,860 $ 17.19 |
Postretirement Benefits (Tables
Postretirement Benefits (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The net periodic benefit cost of our Retirement Plan and DBO Plan consisted of the following (in thousands): Years Ended November 30, 2018 2017 2016 Interest cost $ 2,252 $ 2,274 $ 2,285 Amortization of prior service cost 1,556 1,556 1,556 Service cost 1,085 1,046 1,045 Amortization of net actuarial loss 336 142 79 Total $ 5,229 $ 5,018 $ 4,965 |
Supplemental Disclosure to Co_2
Supplemental Disclosure to Consolidated Statements of Cash Flows (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental disclosures to the consolidated statements of cash flows | The following are supplemental disclosures to the consolidated statements of cash flows (in thousands): Years Ended November 30, 2018 2017 2016 Summary of cash and cash equivalents at the end of the year: Homebuilding $ 574,359 $ 720,630 $ 592,086 Financial services 760 231 914 Total $ 575,119 $ 720,861 $ 593,000 Supplemental disclosure of cash flow information: Interest paid, net of amounts capitalized $ 8,338 $ 7,581 $ 5,567 Income taxes paid 11,949 4,664 3,307 Income taxes refunded 220 202 550 Supplemental disclosure of non-cash activities: Reclassification of warranty recoveries to receivables $ — $ — $ 2,151 Increase (decrease) in consolidated inventories not owned 16,098 (44,833 ) (59,413 ) Increase in inventories due to distributions of land and land development from an unconsolidated joint venture 17,637 6,650 4,277 Inventories acquired through seller financing 44,586 49,658 99,108 |
Supplemental Guarantor Inform_2
Supplemental Guarantor Information (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Guarantees [Abstract] | |
Condensed Consolidating Statements of Operations | Condensed Consolidating Statements of Operations (in thousands) Year Ended November 30, 2018 KB Home Corporate Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Revenues $ — $ 4,198,969 $ 348,033 $ — $ 4,547,002 Homebuilding: Revenues $ — $ 4,198,969 $ 334,826 $ — $ 4,533,795 Construction and land costs — (3,435,058 ) (308,862 ) — (3,743,920 ) Selling, general and administrative expenses (101,152 ) (311,815 ) (31,187 ) — (444,154 ) Operating income (loss) (101,152 ) 452,096 (5,223 ) — 345,721 Interest income 3,273 11 230 — 3,514 Interest expense (141,812 ) (2,624 ) (5,262 ) 149,698 — Intercompany interest 302,253 (142,882 ) (9,673 ) (149,698 ) — Equity in income of unconsolidated joint ventures — 2,066 — — 2,066 Homebuilding pretax income (loss) 62,562 308,667 (19,928 ) — 351,301 Financial services pretax income — — 16,664 — 16,664 Total pretax income (loss) 62,562 308,667 (3,264 ) — 367,965 Income tax expense (62,100 ) (101,200 ) (34,300 ) — (197,600 ) Equity in net income of subsidiaries 169,903 — — (169,903 ) — Net income (loss) $ 170,365 $ 207,467 $ (37,564 ) $ (169,903 ) $ 170,365 Year Ended November 30, 2017 KB Home Corporate Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Revenues $ — $ 4,034,057 $ 334,472 $ — $ 4,368,529 Homebuilding: Revenues $ — $ 4,034,057 $ 322,208 $ — $ 4,356,265 Construction and land costs — (3,342,617 ) (303,851 ) — (3,646,468 ) Selling, general and administrative expenses (91,120 ) (298,498 ) (36,776 ) — (426,394 ) Operating income (loss) (91,120 ) 392,942 (18,419 ) — 283,403 Interest income 1,232 8 — — 1,240 Interest expense (172,102 ) (1,635 ) (3,434 ) 170,864 (6,307 ) Intercompany interest 266,784 (118,138 ) 22,218 (170,864 ) — Equity in loss of unconsolidated joint ventures — (1,407 ) (2 ) — (1,409 ) Homebuilding pretax income 4,794 271,770 363 — 276,927 Financial services pretax income — — 13,068 — 13,068 Total pretax income 4,794 271,770 13,431 — 289,995 Income tax expense (8,800 ) (100,000 ) (600 ) — (109,400 ) Equity in net income of subsidiaries 184,601 — — (184,601 ) — Net income $ 180,595 $ 171,770 $ 12,831 $ (184,601 ) $ 180,595 Year Ended November 30, 2016 KB Home Corporate Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Revenues $ — $ 3,243,928 $ 350,718 $ — $ 3,594,646 Homebuilding: Revenues $ — $ 3,243,928 $ 339,015 $ — $ 3,582,943 Construction and land costs — (2,706,402 ) (334,699 ) — (3,041,101 ) Selling, general and administrative expenses (91,859 ) (254,210 ) (43,372 ) — (389,441 ) Operating income (loss) (91,859 ) 283,316 (39,056 ) — 152,401 Interest income 470 55 4 — 529 Interest expense (177,329 ) (3,958 ) (3,946 ) 179,333 (5,900 ) Intercompany interest 301,432 (105,865 ) (16,234 ) (179,333 ) — Equity in loss of unconsolidated joint ventures — (2,181 ) — — (2,181 ) Homebuilding pretax income (loss) 32,714 171,367 (59,232 ) — 144,849 Financial services pretax income — — 4,466 — 4,466 Total pretax income (loss) 32,714 171,367 (54,766 ) — 149,315 Income tax benefit (expense) 17,200 (52,700 ) (8,200 ) — (43,700 ) Equity in net income of subsidiaries 55,701 — — (55,701 ) — Net income (loss) $ 105,615 $ 118,667 $ (62,966 ) $ (55,701 ) $ 105,615 |
Condensed Consolidating Statements of Comprehensive Income (Loss) | Condensed Consolidating Statements of Comprehensive Income (Loss) (in thousands) Year Ended November 30, 2018 KB Home Corporate Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Net income (loss) $ 170,365 $ 207,467 $ (37,564 ) $ (169,903 ) $ 170,365 Other comprehensive income: Postretirement benefit plan adjustments 10,108 — — — 10,108 Other comprehensive income before tax 10,108 — — — 10,108 Income tax expense related to items of other comprehensive income (2,749 ) — — — (2,749 ) Other comprehensive income, net of tax 7,359 — — — 7,359 Comprehensive income (loss) $ 177,724 $ 207,467 $ (37,564 ) $ (169,903 ) $ 177,724 Year Ended November 30, 2017 KB Home Corporate Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Net income $ 180,595 $ 171,770 $ 12,831 $ (184,601 ) $ 180,595 Other comprehensive loss: Postretirement benefit plan adjustments (1,445 ) — — — (1,445 ) Other comprehensive loss before tax (1,445 ) — — — (1,445 ) Income tax benefit related to items of other comprehensive loss 578 — — — 578 Other comprehensive loss, net of tax (867 ) — — — (867 ) Comprehensive income $ 179,728 $ 171,770 $ 12,831 $ (184,601 ) $ 179,728 Year Ended November 30, 2016 KB Home Corporate Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Net income (loss) $ 105,615 $ 118,667 $ (62,966 ) $ (55,701 ) $ 105,615 Other comprehensive income: Postretirement benefit plan adjustments 2,103 — — — 2,103 Other comprehensive income before tax 2,103 — — — 2,103 Income tax expense related to items of other comprehensive income (841 ) — — — (841 ) Other comprehensive income, net of tax 1,262 — — — 1,262 Comprehensive income (loss) $ 106,877 $ 118,667 $ (62,966 ) $ (55,701 ) $ 106,877 |
Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets (in thousands) November 30, 2018 KB Home Corporate Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Assets Homebuilding: Cash and cash equivalents $ 429,977 $ 114,269 $ 30,113 $ — $ 574,359 Receivables 5,135 198,465 89,230 — 292,830 Inventories — 3,314,386 268,453 — 3,582,839 Investments in unconsolidated joint ventures — 61,960 — — 61,960 Deferred tax assets, net 84,564 303,669 53,587 — 441,820 Other assets 95,738 9,530 2,115 — 107,383 615,414 4,002,279 443,498 — 5,061,191 Financial services — — 12,380 — 12,380 Intercompany receivables 3,569,422 — 158,760 (3,728,182 ) — Investments in subsidiaries 67,657 — — (67,657 ) — Total assets $ 4,252,493 $ 4,002,279 $ 614,638 $ (3,795,839 ) $ 5,073,571 Liabilities and stockholders’ equity Homebuilding: Accounts payable, accrued expenses and other liabilities $ 126,176 $ 584,321 $ 213,816 $ — $ 924,313 Notes payable 1,995,115 40,038 25,110 — 2,060,263 2,121,291 624,359 238,926 — 2,984,576 Financial services — — 1,495 — 1,495 Intercompany payables 43,702 3,377,920 306,560 (3,728,182 ) — Stockholders’ equity 2,087,500 — 67,657 (67,657 ) 2,087,500 Total liabilities and stockholders’ equity $ 4,252,493 $ 4,002,279 $ 614,638 $ (3,795,839 ) $ 5,073,571 November 30, 2017 KB Home Corporate Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Assets Homebuilding: Cash and cash equivalents $ 575,193 $ 104,120 $ 41,317 $ — $ 720,630 Receivables 24,815 145,067 74,331 — 244,213 Inventories — 2,959,606 303,780 — 3,263,386 Investments in unconsolidated joint ventures — 64,794 — — 64,794 Deferred tax assets, net 250,747 243,523 139,367 — 633,637 Other assets 91,592 8,954 1,952 — 102,498 942,347 3,526,064 560,747 — 5,029,158 Financial services — — 12,357 — 12,357 Intercompany receivables 3,414,237 — 107,992 (3,522,229 ) — Investments in subsidiaries 49,776 — — (49,776 ) — Total assets $ 4,406,360 $ 3,526,064 $ 681,096 $ (3,572,005 ) $ 5,041,515 Liabilities and stockholders’ equity Homebuilding: Accounts payable, accrued expenses and other liabilities $ 163,984 $ 374,051 $ 251,358 $ — $ 789,393 Notes payable 2,289,532 9,283 26,030 — 2,324,845 2,453,516 383,334 277,388 — 3,114,238 Financial services — — 966 — 966 Intercompany payables 26,533 3,142,730 352,966 (3,522,229 ) — Stockholders’ equity 1,926,311 — 49,776 (49,776 ) 1,926,311 Total liabilities and stockholders’ equity $ 4,406,360 $ 3,526,064 $ 681,096 $ (3,572,005 ) $ 5,041,515 |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows (in thousands) Year Ended November 30, 2018 KB Home Corporate Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Net cash provided by (used in) operating activities $ 236,892 $ 9,668 $ (25,048 ) $ — $ 221,512 Cash flows from investing activities: Contributions to unconsolidated joint ventures — (22,672 ) 1 — (22,671 ) Return of investments in unconsolidated joint ventures — 9,934 — — 9,934 Purchases of property and equipment, net (6,584 ) (674 ) (112 ) — (7,370 ) Intercompany (43,128 ) — — 43,128 — Net cash used in investing activities (49,712 ) (13,412 ) (111 ) 43,128 (20,107 ) Cash flows from financing activities: Repayment of senior notes (300,000 ) — — — (300,000 ) Borrowings under revolving credit facility 70,000 — — — 70,000 Repayments under revolving credit facility (70,000 ) — — — (70,000 ) Payments on mortgages and land contracts due to land sellers and other loans — (13,831 ) (920 ) — (14,751 ) Issuance of common stock under employee stock plans 20,011 — — — 20,011 Stock repurchases (35,039 ) — — — (35,039 ) Tax payments associated with stock-based compensation awards (8,476 ) — — — (8,476 ) Payments of cash dividends (8,892 ) — — — (8,892 ) Intercompany — 27,724 15,404 (43,128 ) — Net cash provided by (used in) financing activities (332,396 ) 13,893 14,484 (43,128 ) (347,147 ) Net increase (decrease) in cash and cash equivalents (145,216 ) 10,149 (10,675 ) — (145,742 ) Cash and cash equivalents at beginning of year 575,193 104,120 41,548 — 720,861 Cash and cash equivalents at end of year $ 429,977 $ 114,269 $ 30,873 $ — $ 575,119 Year Ended November 30, 2017 KB Home Corporate Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Net cash provided by operating activities $ 70,683 $ 366,005 $ 76,531 $ — $ 513,219 Cash flows from investing activities: Contributions to unconsolidated joint ventures — (13,569 ) (5,125 ) — (18,694 ) Return of investments in unconsolidated joint ventures — 4,119 6,916 — 11,035 Purchases of property and equipment, net (7,215 ) (809 ) (61 ) — (8,085 ) Intercompany 311,857 — — (311,857 ) — Net cash provided by (used in) investing activities 304,642 (10,259 ) 1,730 (311,857 ) (15,744 ) Cash flows from financing activities: Repayment of senior notes (270,326 ) — — — (270,326 ) Issuance costs for unsecured revolving credit facility (1,711 ) — — — (1,711 ) Payments on mortgages and land contracts due to land sellers and other loans — (106,382 ) — — (106,382 ) Issuance of common stock under employee stock plans 23,162 — — — 23,162 Excess tax benefits from stock-based compensation 958 — — — 958 Tax payments associated with stock-based compensation awards (6,673 ) — — — (6,673 ) Payments of cash dividends (8,642 ) — — — (8,642 ) Intercompany — (251,147 ) (60,710 ) 311,857 — Net cash used in financing activities (263,232 ) (357,529 ) (60,710 ) 311,857 (369,614 ) Net increase (decrease) in cash and cash equivalents 112,093 (1,783 ) 17,551 — 127,861 Cash and cash equivalents at beginning of year 463,100 105,903 23,997 — 593,000 Cash and cash equivalents at end of year $ 575,193 $ 104,120 $ 41,548 $ — $ 720,861 Year Ended November 30, 2016 KB Home Corporate Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Total Net cash provided by (used in) operating activities $ (40,277 ) $ 183,466 $ 45,466 $ — $ 188,655 Cash flows from investing activities: Contributions to unconsolidated joint ventures — (4,852 ) (750 ) — (5,602 ) Return of investments in unconsolidated joint ventures — 4,307 — — 4,307 Purchases of property and equipment, net (4,052 ) (579 ) (153 ) — (4,784 ) Intercompany 144,651 — — (144,651 ) — Net cash provided by (used in) investing activities 140,599 (1,124 ) (903 ) (144,651 ) (6,079 ) Cash flows from financing activities: Change in restricted cash 9,344 — — — 9,344 Payments on mortgages and land contracts due to land sellers and other loans — (67,845 ) — — (67,845 ) Issuance of common stock under employee stock plans 5,343 — — — 5,343 Excess tax benefits from stock-based compensation 186 — — — 186 Stock repurchases (85,938 ) — — — (85,938 ) Tax payments associated with stock-based compensation awards (2,421 ) — — — (2,421 ) Payments of cash dividends (8,586 ) — — — (8,586 ) Intercompany — (108,039 ) (36,612 ) 144,651 — Net cash used in financing activities (82,072 ) (175,884 ) (36,612 ) 144,651 (149,917 ) Net increase in cash and cash equivalents 18,250 6,458 7,951 — 32,659 Cash and cash equivalents at beginning of year 444,850 99,445 16,046 — 560,341 Cash and cash equivalents at end of year $ 463,100 $ 105,903 $ 23,997 $ — $ 593,000 |
Quarterly Results (unaudited) (
Quarterly Results (unaudited) (Tables) | 12 Months Ended |
Nov. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Consolidated quarterly results | The following tables present our consolidated quarterly results for the years ended November 30, 2018 and 2017 (in thousands, except per share amounts): First Quarter Second Quarter Third Quarter Fourth Quarter 2018 Revenues $ 871,623 $ 1,101,423 $ 1,225,347 $ 1,348,609 Gross profits 141,192 189,222 222,893 245,931 Inventory impairment and land option contract abandonment charges 4,985 6,526 8,414 9,069 Pretax income 46,045 78,308 114,676 128,936 Net income (loss) (a) (71,255 ) 57,308 87,476 96,836 Earnings (loss) per share: Basic $ (.82 ) $ .65 $ .99 $ 1.09 Diluted (.82 ) .57 .87 .96 2017 Revenues $ 818,596 $ 1,002,794 $ 1,144,001 $ 1,403,138 Gross profits 119,697 155,382 188,110 255,442 Inventory impairment and land option contract abandonment charges 4,008 6,001 8,113 7,110 Pretax income 21,459 51,982 79,208 137,346 Net income 14,259 31,782 50,208 84,346 Earnings per share: Basic $ .17 $ .37 $ .58 $ .97 Diluted .15 .33 .51 .84 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | Dec. 01, 2018 | |
Accounting Policies [Abstract] | ||||
Cash equivalents | $ 385,200 | $ 481,100 | ||
Schedule of Equity Method Investments [Line Items] | ||||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 1,000 | |||
Impairment of Real Estate | 26,104 | 20,605 | $ 49,580 | |
Property and equipment amount | 24,283 | 19,521 | ||
Accumulated depreciation | 20,100 | 19,000 | ||
Depreciation expense | 2,530 | 2,791 | 3,637 | |
Advertising costs incurred | 37,300 | 34,400 | 32,700 | |
Expensed legal fees | $ 12,400 | $ 14,000 | $ 13,600 | |
Minimum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Estimated useful life for depreciation of property and equipment | 2 years | |||
Maximum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Estimated useful life for depreciation of property and equipment | 10 years | |||
Subsequent Event [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Retained earnings | $ 12,000 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Nov. 30, 2018USD ($) | Aug. 31, 2018USD ($) | May 31, 2018USD ($) | Feb. 28, 2018USD ($) | Nov. 30, 2017USD ($) | Aug. 31, 2017USD ($) | May 31, 2017USD ($) | Feb. 28, 2017USD ($) | Nov. 30, 2018USD ($)segment | Nov. 30, 2017USD ($) | Nov. 30, 2016USD ($) | ||
Segment Reporting Information [Line Items] | ||||||||||||
Inventory, Homes under Construction | $ 1,125,152 | $ 1,236,848 | $ 1,125,152 | $ 1,236,848 | ||||||||
Inventory, Real Estate, Land and Land Development Costs | 2,219,936 | 1,651,339 | 2,219,936 | 1,651,339 | ||||||||
Inventory, Land Held for Development and Sale | [1] | 237,751 | 375,199 | 237,751 | 375,199 | |||||||
Inventory, Operative Builders | 3,582,839 | 3,263,386 | 3,582,839 | 3,263,386 | ||||||||
Revenues: | ||||||||||||
Revenues | 4,533,795 | 4,356,265 | $ 3,582,943 | |||||||||
Pretax income (loss): | ||||||||||||
Pretax income (loss) | 128,936 | $ 114,676 | $ 78,308 | $ 46,045 | 137,346 | $ 79,208 | $ 51,982 | $ 21,459 | 367,965 | 289,995 | 149,315 | |
Equity in income (loss) of unconsolidated joint ventures: | ||||||||||||
Equity in income (loss) of unconsolidated joint ventures | 9,367 | 2,825 | (5,601) | |||||||||
Impairment of Real Estate | 26,104 | 20,605 | 49,580 | |||||||||
Assets: | ||||||||||||
Total assets | 5,073,571 | 5,041,515 | 5,073,571 | 5,041,515 | ||||||||
Investments in unconsolidated joint ventures: | ||||||||||||
Investments in unconsolidated joint ventures | 61,960 | 64,794 | $ 61,960 | 64,794 | ||||||||
Homebuilding [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Number of Reportable Segments | segment | 4 | |||||||||||
Pretax income (loss): | ||||||||||||
Pretax income (loss) | $ 351,301 | 276,927 | 144,849 | |||||||||
Equity in income (loss) of unconsolidated joint ventures: | ||||||||||||
Equity in income (loss) of unconsolidated joint ventures | 2,066 | (1,409) | (2,181) | |||||||||
Assets: | ||||||||||||
Total assets | 5,061,191 | 5,029,158 | $ 5,061,191 | 5,029,158 | ||||||||
Financial services [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Number of Reportable Segments | segment | 1 | |||||||||||
Pretax income (loss): | ||||||||||||
Pretax income (loss) | $ 16,664 | 13,068 | 4,466 | |||||||||
Equity in income (loss) of unconsolidated joint ventures: | ||||||||||||
Equity in income (loss) of unconsolidated joint ventures | 7,301 | 4,234 | (3,420) | |||||||||
Assets: | ||||||||||||
Total assets | 12,380 | 12,357 | 12,380 | 12,357 | ||||||||
Investments in unconsolidated joint ventures: | ||||||||||||
Investments in unconsolidated joint ventures | [2] | $ 8,594 | 10,340 | $ 8,594 | 10,340 | |||||||
Home Community Mortgage LLC [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Ownership interest in joint venture | 49.90% | 49.90% | ||||||||||
KBHS, LLC [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Ownership interest in joint venture | 50.00% | 50.00% | ||||||||||
Corporate and Other [Member] | Homebuilding [Member] | ||||||||||||
Pretax income (loss): | ||||||||||||
Pretax income (loss) | $ (105,286) | (101,851) | (98,511) | |||||||||
Assets: | ||||||||||||
Total assets | $ 1,068,452 | 1,433,883 | 1,068,452 | 1,433,883 | ||||||||
Central [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Inventory, Homes under Construction | 312,366 | 320,205 | 312,366 | 320,205 | ||||||||
Inventory, Real Estate, Land and Land Development Costs | 543,472 | 435,373 | 543,472 | 435,373 | ||||||||
Inventory, Land Held for Development and Sale | 9,346 | 12,654 | 9,346 | 12,654 | ||||||||
Revenues: | ||||||||||||
Revenues | 1,239,305 | 1,188,839 | 1,018,535 | |||||||||
Equity in income (loss) of unconsolidated joint ventures: | ||||||||||||
Impairment of Real Estate | 1,463 | 0 | 10,633 | |||||||||
Investments in unconsolidated joint ventures: | ||||||||||||
Investments in unconsolidated joint ventures | 0 | 0 | 0 | 0 | ||||||||
Central [Member] | Homebuilding [Member] | ||||||||||||
Pretax income (loss): | ||||||||||||
Pretax income (loss) | 117,609 | 116,098 | 85,924 | |||||||||
Equity in income (loss) of unconsolidated joint ventures: | ||||||||||||
Equity in income (loss) of unconsolidated joint ventures | 0 | 0 | 0 | |||||||||
Assets: | ||||||||||||
Total assets | 1,017,490 | 901,516 | 1,017,490 | 901,516 | ||||||||
West Coast [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Inventory, Homes under Construction | 514,099 | 638,639 | 514,099 | 638,639 | ||||||||
Inventory, Real Estate, Land and Land Development Costs | 1,059,432 | 723,761 | 1,059,432 | 723,761 | ||||||||
Inventory, Land Held for Development and Sale | 154,462 | 233,188 | 154,462 | 233,188 | ||||||||
Revenues: | ||||||||||||
Revenues | 2,085,328 | 2,186,411 | 1,638,078 | |||||||||
Equity in income (loss) of unconsolidated joint ventures: | ||||||||||||
Impairment of Real Estate | 19,169 | 13,482 | 8,209 | |||||||||
Investments in unconsolidated joint ventures: | ||||||||||||
Investments in unconsolidated joint ventures | 56,128 | 53,506 | 56,128 | 53,506 | ||||||||
West Coast [Member] | Homebuilding [Member] | ||||||||||||
Pretax income (loss): | ||||||||||||
Pretax income (loss) | 240,337 | 217,649 | 148,014 | |||||||||
Equity in income (loss) of unconsolidated joint ventures: | ||||||||||||
Equity in income (loss) of unconsolidated joint ventures | (966) | (1,770) | (1,561) | |||||||||
Assets: | ||||||||||||
Total assets | 1,880,516 | 1,747,786 | 1,880,516 | 1,747,786 | ||||||||
Southeast [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Inventory, Homes under Construction | 125,651 | 98,764 | 125,651 | 98,764 | ||||||||
Inventory, Real Estate, Land and Land Development Costs | 212,831 | 182,533 | 212,831 | 182,533 | ||||||||
Inventory, Land Held for Development and Sale | 52,806 | 66,882 | 52,806 | 66,882 | ||||||||
Revenues: | ||||||||||||
Revenues | 502,087 | 447,963 | 478,857 | |||||||||
Equity in income (loss) of unconsolidated joint ventures: | ||||||||||||
Impairment of Real Estate | 5,472 | 3,678 | 27,547 | |||||||||
Investments in unconsolidated joint ventures: | ||||||||||||
Investments in unconsolidated joint ventures | 2,505 | 2,504 | 2,505 | 2,504 | ||||||||
Southeast [Member] | Homebuilding [Member] | ||||||||||||
Pretax income (loss): | ||||||||||||
Pretax income (loss) | 7,624 | (509) | (29,385) | |||||||||
Equity in income (loss) of unconsolidated joint ventures: | ||||||||||||
Equity in income (loss) of unconsolidated joint ventures | (1) | (1) | (2) | |||||||||
Assets: | ||||||||||||
Total assets | 463,224 | 359,307 | 463,224 | 359,307 | ||||||||
Southwest [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Inventory, Homes under Construction | 173,036 | 179,240 | 173,036 | 179,240 | ||||||||
Inventory, Real Estate, Land and Land Development Costs | 404,201 | 309,672 | 404,201 | 309,672 | ||||||||
Inventory, Land Held for Development and Sale | 21,137 | 62,475 | 21,137 | 62,475 | ||||||||
Revenues: | ||||||||||||
Revenues | 707,075 | 533,052 | 447,473 | |||||||||
Equity in income (loss) of unconsolidated joint ventures: | ||||||||||||
Impairment of Real Estate | 0 | 3,445 | 3,191 | |||||||||
Investments in unconsolidated joint ventures: | ||||||||||||
Investments in unconsolidated joint ventures | 3,327 | 8,784 | 3,327 | 8,784 | ||||||||
Southwest [Member] | Homebuilding [Member] | ||||||||||||
Pretax income (loss): | ||||||||||||
Pretax income (loss) | 91,017 | 45,540 | 38,807 | |||||||||
Equity in income (loss) of unconsolidated joint ventures: | ||||||||||||
Equity in income (loss) of unconsolidated joint ventures | 3,033 | 362 | (618) | |||||||||
Assets: | ||||||||||||
Total assets | $ 631,509 | $ 586,666 | $ 631,509 | 586,666 | ||||||||
Nationstar Mortgage LLC [Member] | Home Community Mortgage LLC [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Ownership interest in joint venture | 50.10% | 50.10% | ||||||||||
Stearns Lending, LLC [Member] | KBHS, LLC [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Ownership interest in joint venture | 50.00% | 50.00% | ||||||||||
Land Option Contract Abandonment [Member] | ||||||||||||
Equity in income (loss) of unconsolidated joint ventures: | ||||||||||||
Loss on Contract Termination | $ 2,890 | 4,627 | 3,232 | |||||||||
Land Option Contract Abandonment [Member] | Central [Member] | ||||||||||||
Equity in income (loss) of unconsolidated joint ventures: | ||||||||||||
Loss on Contract Termination | 1,095 | 846 | 460 | |||||||||
Land Option Contract Abandonment [Member] | West Coast [Member] | ||||||||||||
Equity in income (loss) of unconsolidated joint ventures: | ||||||||||||
Loss on Contract Termination | 1,212 | 3,225 | 769 | |||||||||
Land Option Contract Abandonment [Member] | Southeast [Member] | ||||||||||||
Equity in income (loss) of unconsolidated joint ventures: | ||||||||||||
Loss on Contract Termination | 151 | 556 | 1,750 | |||||||||
Land Option Contract Abandonment [Member] | Southwest [Member] | ||||||||||||
Equity in income (loss) of unconsolidated joint ventures: | ||||||||||||
Loss on Contract Termination | $ 432 | $ 0 | $ 253 | |||||||||
Metro Washington, D.C. [Member] | Southeast [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Percent of Homebuilding Revenues | 2.00% | |||||||||||
Metro Washington, D.C. [Member] | Land Option Contract Abandonment [Member] | Southeast [Member] | ||||||||||||
Equity in income (loss) of unconsolidated joint ventures: | ||||||||||||
Loss on Contract Termination | $ 1,400 | |||||||||||
[1] | Land held for sale totaled $9.8 million at November 30, 2018 and $21.8 million at November 30, 2017. | |||||||||||
[2] | In 2017, we made a $5.3 million capital contribution to KBHS and received a $5.0 million distribution from HCM. |
Financial Services (Details)
Financial Services (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | ||
Financial services: | |||||||||||||
Insurance commissions | $ 7,535 | $ 6,991 | $ 6,728 | ||||||||||
Title services | 5,672 | 5,268 | 4,975 | ||||||||||
Interest income | 0 | 5 | 0 | ||||||||||
Total | 13,207 | 12,264 | 11,703 | ||||||||||
Expenses | |||||||||||||
Expenses | (3,844) | (3,430) | (3,817) | ||||||||||
Operating income (loss) | 345,721 | 283,403 | 152,401 | ||||||||||
Equity in income (loss) of unconsolidated joint ventures | 9,367 | 2,825 | (5,601) | ||||||||||
Pretax income (loss) | $ 128,936 | $ 114,676 | $ 78,308 | $ 46,045 | $ 137,346 | $ 79,208 | $ 51,982 | $ 21,459 | 367,965 | 289,995 | 149,315 | ||
Assets | |||||||||||||
Cash and cash equivalents | 575,119 | 720,861 | 575,119 | 720,861 | 593,000 | $ 560,341 | |||||||
Receivables | 292,830 | 244,213 | 292,830 | 244,213 | |||||||||
Investments in unconsolidated joint ventures | 61,960 | 64,794 | 61,960 | 64,794 | |||||||||
Other assets | 107,383 | 102,498 | 107,383 | 102,498 | |||||||||
Total assets | 5,073,571 | 5,041,515 | 5,073,571 | 5,041,515 | |||||||||
Liabilities | |||||||||||||
Accounts payable and accrued expenses | 924,313 | 789,393 | 924,313 | 789,393 | |||||||||
Total liabilities | 1,495 | 966 | 1,495 | 966 | |||||||||
Financial services [Member] | |||||||||||||
Expenses | |||||||||||||
Operating income (loss) | 9,363 | 8,834 | 7,886 | ||||||||||
Equity in income (loss) of unconsolidated joint ventures | 7,301 | 4,234 | (3,420) | ||||||||||
Pretax income (loss) | 16,664 | 13,068 | 4,466 | ||||||||||
Assets | |||||||||||||
Cash and cash equivalents | 760 | 231 | 760 | 231 | $ 914 | ||||||||
Receivables | 2,885 | 1,724 | 2,885 | 1,724 | |||||||||
Investments in unconsolidated joint ventures | [1] | 8,594 | 10,340 | 8,594 | 10,340 | ||||||||
Other assets | 141 | 62 | 141 | 62 | |||||||||
Total assets | 12,380 | 12,357 | 12,380 | 12,357 | |||||||||
Liabilities | |||||||||||||
Accounts payable and accrued expenses | $ 1,495 | $ 966 | $ 1,495 | 966 | |||||||||
KBHS, LLC [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Partners' Capital Account, Contributions | 5,300 | ||||||||||||
Home Community Mortgage LLC [Member] | |||||||||||||
Liabilities | |||||||||||||
Partners' Capital Account, Distributions | $ 5,000 | ||||||||||||
[1] | In 2017, we made a $5.3 million capital contribution to KBHS and received a $5.0 million distribution from HCM. |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) | Jan. 29, 2013shares | Nov. 30, 2018shares | Nov. 30, 2017shares | Nov. 30, 2016shares | Nov. 30, 2013 |
Debt Instrument [Line Items] | |||||
Conversion rate | 0.0365297 | 0.0365297 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 800,000 | 1,600,000 | 7,300,000 | ||
Convertible senior notes due February 1, 2019 at 1.375% | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.375% | 1.375% | |||
Convertible Notes Payable [Member] | Convertible senior notes due February 1, 2019 at 1.375% | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.375% | 1.375% | |||
Debt Conversion, Converted Instrument, Shares Issued | 36.5297 |
Earnings Per Share (Basic and D
Earnings Per Share (Basic and Diluted Loss Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Numerator: | |||||||||||
Net income | $ 96,836 | $ 87,476 | $ 57,308 | $ (71,255) | $ 84,346 | $ 50,208 | $ 31,782 | $ 14,259 | $ 170,365 | $ 180,595 | $ 105,615 |
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic | (51) | (56) | (45) | ||||||||
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic | (927) | (1,121) | (508) | ||||||||
Numerator for basic earnings per share | 169,387 | 179,418 | 105,062 | ||||||||
Interest expense and amortization of debt issuance costs associated with convertible senior notes, net of taxes | 3,190 | 2,654 | 2,667 | ||||||||
Undistributed Earnings (Loss) Allocated to Participating Securities, Diluted | 927 | 1,121 | 508 | ||||||||
Less: Undistributed earnings reallocated to nonvested restricted stock | (805) | (979) | (453) | ||||||||
Numerator for diluted earnings per share | $ 172,699 | $ 182,214 | $ 107,784 | ||||||||
Denominator: | |||||||||||
Weighted average shares outstanding — basic | 87,773 | 85,842 | 85,706 | ||||||||
Share-based payments, shares | 4,884 | 4,072 | 2,170 | ||||||||
Convertible senior notes, shares | 8,402 | 8,402 | 8,402 | ||||||||
Weighted average shares outstanding — diluted | 101,059 | 98,316 | 96,278 | ||||||||
Basic earnings (loss) per share, in dollars per share | $ 1.09 | $ 0.99 | $ 0.65 | $ (0.82) | $ 0.97 | $ 0.58 | $ 0.37 | $ 0.17 | $ 1.93 | $ 2.09 | $ 1.23 |
Diluted earnings (loss) per share, in dollars per share | $ 0.96 | $ 0.87 | $ 0.57 | $ (0.82) | $ 0.84 | $ 0.51 | $ 0.33 | $ 0.15 | $ 1.71 | $ 1.85 | $ 1.12 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Nov. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Utility and Municipality Receivable | [1] | $ 113,434 | $ 113,744 |
Deposits Assets | 14,115 | 13,829 | |
Other Receivables | 33,775 | 33,797 | |
Accounts Receivable, Gross | 304,335 | 257,206 | |
Allowances for doubtful accounts | (11,505) | (12,993) | |
Receivables | 292,830 | 244,213 | |
Self Insurance and Other Legal Claims [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Reclassification of warranty recoveries to receivables | 138,261 | 91,763 | |
Warranty and Other [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Reclassification of warranty recoveries to receivables | $ 4,750 | $ 4,073 | |
[1] | These receivables typically relate to infrastructure improvements we make with respect to our communities. We are generally reimbursed for the cost of such improvements when they are accepted by the utility company, improvement district or municipality, or after certain events occur, depending on the terms of the applicable agreements. These events may include, but are not limited to, the connection of utilities or the issuance of bonds by the respective improvement districts or municipalities. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | ||||
Interest Costs | ||||||
Capitalized interest at beginning of year | $ 262,191 | [1] | $ 306,723 | [1] | $ 288,442 | |
Interest incurred | [2] | 149,698 | 177,171 | 185,466 | ||
Interest Expense | [2] | 0 | (6,307) | (5,900) | ||
Interest amortized to construction and land costs | [3] | (202,760) | (215,396) | (161,285) | ||
Capitalized interest at end of year | [1] | 209,129 | 262,191 | 306,723 | ||
Loss on early extinguishment of debt | 0 | (5,685) | 0 | |||
Inventories | ||||||
Homes under construction | 1,125,152 | 1,236,848 | ||||
Land under development | 2,219,936 | 1,651,339 | ||||
Land held for future development or sale | [4] | 237,751 | 375,199 | |||
Total | 3,582,839 | 3,263,386 | ||||
Land held for future development | [4] | $ 9,800 | 21,800 | |||
Real Estate Held for Sale Duration | 1 year | |||||
Land [Member] | ||||||
Interest Costs | ||||||
Interest amortized to construction and land costs | $ (4,800) | $ (4,900) | $ (700) | |||
[1] | Capitalized interest amounts presented in the table reflect the gross amount of capitalized interest, as inventory impairment charges recognized, if any, are not generally allocated to specific components of inventory. | |||||
[2] | Interest incurred and interest expensed for the year ended November 30, 2017 included a charge of $5.7 million for the early extinguishment of debt. | |||||
[3] | Interest amortized to construction and land costs for the years ended November 30, 2018, 2017 and 2016 included $4.8 million, $4.9 million and $.7 million, respectively, related to land sales during the periods. | |||||
[4] | Land held for sale totaled $9.8 million at November 30, 2018 and $21.8 million at November 30, 2017. |
Inventory Impairments and Lan_3
Inventory Impairments and Land Option Contract Abandonments (Details) | 12 Months Ended | |||
Nov. 30, 2018USD ($)deliveryproperty | Nov. 30, 2017USD ($)deliverycommunityproperty | Nov. 30, 2016USD ($)deliverycommunityproperty | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Impairment of Real Estate | $ 26,104,000 | $ 20,605,000 | $ 49,580,000 | |
Acquisition Costs Related To Land Option Contracts And Other Similar Contracts | 46,900,000 | 26,800,000 | ||
Carrying Value of Communities of Land Parcels Evaluated for Impairment | $ 356,100,000 | $ 456,900,000 | $ 423,100,000 | |
Number of land parcels or communities associated with non cash inventory impairment charges | property | 13 | 10 | ||
Number of land parcels or communities evaluated for recoverability | property | 57 | 51 | 68 | |
Aggregate carrying value of inventory impacted by pretax, noncash inventory impairment charges | $ 156,100,000 | $ 177,800,000 | ||
Number of communities and various other land parcels impacted by pretax, noncash inventory impairment charges | community | 22 | 24 | ||
Expected realization period of inventory maximum | 5 years | |||
Estimate of Fair Value Measurement | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Assets, Fair Value Disclosure | $ 44,100,000 | $ 38,400,000 | ||
Minimum | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fair Value Estimate Input at Average Selling Price | [1] | $ 291,300 | $ 207,100 | $ 216,200 |
Fair Value Estimate Input at Sales for Period | delivery | [1] | 2 | 1 | 1 |
Fair Value Inputs, Discount Rate | [1] | 17.00% | 17.00% | 17.00% |
Expected realization period of inventory maximum | 1 year | |||
Maximum | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fair Value Estimate Input at Average Selling Price | [1] | $ 774,100 | $ 1,576,500 | $ 977,400 |
Fair Value Estimate Input at Sales for Period | delivery | [1] | 6 | 4 | 4 |
Fair Value Inputs, Discount Rate | [1] | 19.00% | 18.00% | 20.00% |
Expected realization period of inventory maximum | 10 years | |||
Land Option Contract Abandonment [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Loss on Contract Termination | $ 2,890,000 | $ 4,627,000 | $ 3,232,000 | |
West Coast [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Impairment of Real Estate | 19,169,000 | 13,482,000 | 8,209,000 | |
West Coast [Member] | Land Option Contract Abandonment [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Loss on Contract Termination | 1,212,000 | 3,225,000 | 769,000 | |
Southeast [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Impairment of Real Estate | 5,472,000 | 3,678,000 | 27,547,000 | |
Southeast [Member] | Land Option Contract Abandonment [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Loss on Contract Termination | $ 151,000 | $ 556,000 | 1,750,000 | |
Land Held for Future Development [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Impairment of Real Estate | 12,900,000 | |||
Metro Washington, D.C. [Member] | Southeast [Member] | Land Option Contract Abandonment [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Loss on Contract Termination | 1,400,000 | |||
Metro Washington, D.C. [Member] | Land [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Impairment of Real Estate | $ 36,700,000 | |||
[1] | The ranges of inputs used in each period primarily reflect differences between the housing markets where each impacted community is located, rather than fluctuations in prevailing market conditions. |
Variable Interest Entities (Det
Variable Interest Entities (Details) $ in Thousands | Nov. 30, 2018USD ($)joint_venture | Nov. 30, 2017USD ($)joint_venture |
Variable Interest Entity [Line Items] | ||
Number of Investments in Unconsolidated Joint Ventures | joint_venture | 6 | 7 |
Cash Deposits | $ 53,830 | $ 64,702 |
Aggregate Purchase Price | 1,371,238 | 1,094,087 |
Acquisition Costs Related To Land Option Contracts And Other Similar Contracts | 46,900 | 26,800 |
Increase in inventories and accrued expenses and other liabilities | $ 21,800 | $ 5,700 |
Unconsolidated VIEs [Member] | ||
Variable Interest Entity [Line Items] | ||
Number of Investments in Unconsolidated Joint Ventures | joint_venture | 1 | 1 |
Cash Deposits | $ 26,542 | $ 43,171 |
Aggregate Purchase Price | 784,334 | 653,858 |
Other land option contracts and other similar contracts [Member] | ||
Variable Interest Entity [Line Items] | ||
Cash Deposits | 27,288 | 21,531 |
Aggregate Purchase Price | $ 586,904 | $ 440,229 |
Investments in Unconsolidated_3
Investments in Unconsolidated Joint Ventures (Narrative) (Details) $ in Thousands | Nov. 30, 2018USD ($)joint_venture | Nov. 30, 2017USD ($)joint_venture |
Schedule of Equity Method Investments [Line Items] | ||
Investments in unconsolidated joint ventures | $ 61,960 | $ 64,794 |
Number of investments in unconsolidated joint ventures | joint_venture | 6 | 7 |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 670,000 | |
Investments in Unconsolidated Joint Ventures with Debt | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of investments in unconsolidated joint ventures | joint_venture | 1 | 2 |
West Coast [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in unconsolidated joint ventures | $ 56,128 | $ 53,506 |
Investments in Unconsolidated_4
Investments in Unconsolidated Joint Ventures (Condensed Information of Unconsolidated Joint Ventures) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | ||
Statements of Operations of Unconsolidated Joint Ventures | ||||
Revenues | $ 59,418 | $ 47,431 | $ 46,389 | |
Equity Method Investment, Summarized Financial Information, Cost of Sales | (46,288) | (47,459) | (50,566) | |
Other expense, net | (2,674) | (4,749) | (4,465) | |
Income (loss) | 10,456 | (4,777) | $ (8,642) | |
Assets | ||||
Cash | 18,567 | 21,193 | ||
Receivable | 9 | 688 | ||
Inventories | 131,074 | 145,519 | ||
Other assets | 521 | 1,398 | ||
Total assets | 150,171 | 168,798 | ||
Liabilities and equity | ||||
Accounts payable and other liabilities | 11,374 | 25,426 | ||
Equity Method Investments Summarized Financial Information Debt | [1] | 17,956 | 20,040 | |
Equity | 120,841 | 123,332 | ||
Total liabilities and equity | $ 150,171 | $ 168,798 | ||
[1] | As of November 30, 2017, two of our unconsolidated joint ventures had separate construction loan agreements with different third-party lenders to finance their respective land development activities, with the outstanding debt secured by the corresponding underlying property and related project assets and non-recourse to us. The secured debt of one of these unconsolidated joint ventures was repaid in August 2018 upon maturity. All of the outstanding secured debt at November 30, 2018 is scheduled to mature in February 2020. None of our other unconsolidated joint ventures had outstanding debt at November 30, 2018 or 2017. |
Investments in Unconsolidated_5
Investments in Unconsolidated Joint Ventures (Additional Information for Investments in Unconsolidated Joint Ventures) (Details) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018USD ($)lotjoint_venture | Nov. 30, 2017USD ($)lotjoint_venture | Nov. 30, 2016USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Long-Term Purchase Commitment, Lots | lot | 36 | ||
Number of investments in unconsolidated joint ventures | joint_venture | 6 | 7 | |
Long-term Purchase Commitment, Period | 2 years | ||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ | $ 61,960 | $ 64,794 | |
Number of Unconsolidated Joint Venture Lots Controlled Under Land Option Contracts | lot | 36 | 377 | |
Long-term Purchase Commitment, Amount | $ | $ 16,900 | ||
Inspirada Builders LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Increase in inventories due to distributions of land and land development from an unconsolidated joint venture | $ | $ 17,637 | $ 6,650 | $ 4,277 |
Investments in Unconsolidated Joint Ventures with Debt | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of investments in unconsolidated joint ventures | joint_venture | 1 | 2 | |
Investments in Unconsolidated Joint Ventures with Purchase Commitments [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of investments in unconsolidated joint ventures | joint_venture | 1 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Nov. 30, 2017 | Jan. 29, 2013 |
Other Assets [Line Items] | |||
Cash surrender value of insurance contracts | $ 73,721 | $ 75,236 | |
Debt Issuance Costs, Line of Credit Arrangements, Net | 1,732 | 2,381 | |
Property and equipment, net | 24,283 | 19,521 | |
Prepaid expenses | 7,647 | 5,360 | |
Total | $ 107,383 | $ 102,498 | |
Convertible senior notes due February 1, 2019 at 1.375% | |||
Other Assets [Line Items] | |||
Senior notes, rate | 1.375% | 1.375% |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||||
Self-Insurance and other litigation liabilities | $ 283,651 | $ 222,808 | |||
Employee compensation and related benefits | 148,549 | 143,992 | |||
Warranty liability | 82,490 | 69,798 | $ 56,682 | $ 49,085 | |
Customer Deposits, Current | 19,491 | 16,863 | |||
Accrued interest payable | 31,180 | 39,518 | |||
Inventory-related liabilities | [1] | 40,892 | 30,108 | ||
Real estate and business taxes | 16,639 | 16,874 | |||
Other | 43,376 | 35,969 | |||
Total | $ 666,268 | $ 575,930 | |||
[1] | Represents liabilities for financing arrangements discussed in Note 8 – Variable Interest Entities, as well as liabilities for fixed or determinable amounts associated with 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. |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2018 | Feb. 28, 2018 | Nov. 30, 2022 | Nov. 30, 2019 | Nov. 30, 2018 | Nov. 30, 2018 | Nov. 30, 2018 | Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Income Tax Contingency [Line Items] | |||||||||||
Impact of Tax Reform | $ 1,300,000 | $ 112,458,000 | $ 0 | $ 0 | |||||||
Impact of Tax Return, re-measurement of deferred tax assets | 106,700,000 | ||||||||||
Provisional impact of Tax Refrom | $ 111,200,000 | ||||||||||
Income Tax Credits and Adjustments | 10,700,000 | 4,900,000 | 15,200,000 | ||||||||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | (2,000,000) | $ (1,200,000) | $ (12,982,000) | ||||||||
Effective Income Tax Rate Reconciliation, Percent | (53.70%) | (37.70%) | (29.30%) | ||||||||
Income Taxes (Textual) [Abstract] | |||||||||||
Income tax expense | (197,600,000) | $ (109,400,000) | $ (43,700,000) | ||||||||
Deferred Tax Assets, Net | (465,400,000) | $ (465,400,000) | $ (465,400,000) | (465,400,000) | $ (465,400,000) | (657,200,000) | |||||
Net Increase in valuation allowance recorded against net deferred tax assets | (3,300,000) | 1,200,000 | 13,000,000 | ||||||||
Period for Carry forward of tax benefits related to deferred tax assets | 20 years | ||||||||||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local, Expired | 1,200,000 | 500,000 | |||||||||
Deferred Tax Assets, Tax Credit Carryforwards | 128,500,000 | $ 128,500,000 | 128,500,000 | 128,500,000 | 128,500,000 | ||||||
Accumulated Deferred Investment Tax Credit | 3,200,000 | 3,200,000 | 3,200,000 | 3,200,000 | 3,200,000 | ||||||
Valuation allowance | (23,600,000) | (23,600,000) | (23,600,000) | (23,600,000) | (23,600,000) | (23,600,000) | |||||
Unrecognized tax benefits that if recognized would affect the Company's annual effective tax rate | 0 | 0 | 0 | 0 | 0 | 100,000 | 100,000 | ||||
Total accrued interest and penalties related to unrecognized income tax benefits | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 0 | 0 | 0 | 0 | 0 | 0 | |||||
Unrecognized Tax Benefits | 0 | 0 | 0 | 0 | 0 | 56,000 | $ 56,000 | $ 56,000 | |||
Valuation allowance against net deferred tax assets | 23,600,000 | 23,600,000 | 23,600,000 | 23,600,000 | 23,600,000 | 23,600,000 | |||||
Total deferred tax assets | 524,951,000 | 524,951,000 | $ 524,951,000 | 524,951,000 | $ 524,951,000 | $ 791,271,000 | |||||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 1,000,000 | ||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 22.20% | 22.00% | 35.00% | 35.00% | |||||||
Deferred Tax Assets, Tax Credit Carryforwards | 231,100,000 | 231,100,000 | $ 231,100,000 | 231,100,000 | $ 231,100,000 | $ 208,841,000 | |||||
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | 0.20% | (0.30%) | (0.30%) | ||||||||
Tax Cuts and Jobs Act of 2017, Other Tax Effect, Income Tax Expense (Benefit) | 2,500,000 | ||||||||||
Maximum | |||||||||||
Income Tax Contingency [Line Items] | |||||||||||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Compensation | 1,000,000 | $ 1,000,000 | $ 1,000,000 | 1,000,000 | 1,000,000 | ||||||
Income Taxes (Textual) [Abstract] | |||||||||||
Tax Credit Carryforward, Expiration Date | Dec. 31, 2037 | ||||||||||
Minimum | |||||||||||
Income Taxes (Textual) [Abstract] | |||||||||||
Tax Credit Carryforward, Expiration Date | Dec. 31, 2026 | ||||||||||
Tax Credit Carryforward, Expiring in 2038 [Domain] | |||||||||||
Income Tax Contingency [Line Items] | |||||||||||
Future Income From Continuing Operations Before Income Taxes | 1,600,000,000 | ||||||||||
Investment Tax Credit Carryforward, Expiration in 2026 [Member] | |||||||||||
Income Taxes (Textual) [Abstract] | |||||||||||
Accumulated Deferred Investment Tax Credit | 2,400,000 | $ 2,400,000 | 2,400,000 | 2,400,000 | 2,400,000 | ||||||
Investment Tax Credit Carryforward, Expiration in 2027 [Member] | |||||||||||
Income Taxes (Textual) [Abstract] | |||||||||||
Accumulated Deferred Investment Tax Credit | 800,000 | 800,000 | 800,000 | 800,000 | 800,000 | ||||||
State and Local Jurisdiction [Member] | |||||||||||
Income Tax Contingency [Line Items] | |||||||||||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | (2,100,000) | ||||||||||
Income Taxes (Textual) [Abstract] | |||||||||||
Net Increase in valuation allowance recorded against net deferred tax assets | 3,300,000 | ||||||||||
Operating Loss Carryforwards | 115,800,000 | $ 115,800,000 | 115,800,000 | 115,800,000 | 115,800,000 | ||||||
State and Local Jurisdiction [Member] | Maximum | |||||||||||
Income Taxes (Textual) [Abstract] | |||||||||||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2038 | ||||||||||
State and Local Jurisdiction [Member] | Minimum | |||||||||||
Income Taxes (Textual) [Abstract] | |||||||||||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2019 | ||||||||||
Internal Revenue Service (IRS) [Member] | |||||||||||
Income Taxes (Textual) [Abstract] | |||||||||||
Operating Loss Carryforwards | $ 5,600,000 | $ 5,600,000 | $ 5,600,000 | $ 5,600,000 | $ 5,600,000 | ||||||
Internal Revenue Service (IRS) [Member] | Maximum | |||||||||||
Income Taxes (Textual) [Abstract] | |||||||||||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2033 | ||||||||||
Internal Revenue Service (IRS) [Member] | Minimum | |||||||||||
Income Taxes (Textual) [Abstract] | |||||||||||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2032 | ||||||||||
Scenario, Forecast [Member] | |||||||||||
Income Taxes (Textual) [Abstract] | |||||||||||
Effective Income Tax Rate Reconciliation, Deduction, Percent | 50.00% | ||||||||||
Deferred Tax Assets, Tax Credit Carryforwards | $ 50,000,000 | ||||||||||
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | 6.60% |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Federal | |||
Current | $ (3,600) | $ (2,800) | $ (1,900) |
Deferred | (170,700) | (86,300) | (28,700) |
Income tax expense | (174,300) | (89,100) | (30,600) |
State | |||
Current | (4,800) | (3,000) | (1,000) |
Deferred | (18,500) | (17,300) | (12,100) |
Income tax expense | (23,300) | (20,300) | (13,100) |
Total | |||
Current | (8,400) | (5,800) | (2,900) |
Deferred | (189,200) | (103,600) | (40,800) |
Income tax expense | $ (197,600) | $ (109,400) | $ (43,700) |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets, Net) (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Nov. 30, 2017 |
Deferred tax liabilities | ||
Capitalized expenses | $ 51,660 | $ 98,147 |
State taxes | 31,246 | 59,174 |
Other | 225 | 313 |
Total | 83,131 | 157,634 |
Deferred tax assets: | ||
NOLs from 2006 through 2018 | 121,432 | 236,273 |
Tax credits | 231,100 | 208,841 |
Inventory impairment and land option contract abandonment charges | 67,416 | 139,737 |
Employee benefits | 45,802 | 100,200 |
Warranty, legal and other accruals | 43,213 | 60,238 |
Capitalized expenses | 27,894 | 39,195 |
Partnerships and joint ventures | 6,368 | 14,784 |
Depreciation and amortization | 1,869 | 7,333 |
Other | 3,457 | 8,270 |
Total | 548,551 | 814,871 |
Valuation allowance | (23,600) | (23,600) |
Total | 524,951 | 791,271 |
Deferred Tax Assets, Net | $ 441,820 | $ 633,637 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Expected Income Tax Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Nov. 30, 2018 | Nov. 30, 2018 | Nov. 30, 2018 | Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Income tax benefit computed at the statutory U.S. federal income tax rate and income tax benefit (expense) provided in the consolidated statements of operations | ||||||
Income tax benefit computed at statutory rate | $ (81,689) | $ (101,499) | $ (52,260) | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | (22.20%) | (22.00%) | (35.00%) | (35.00%) | ||
Increase (decrease) resulting from | ||||||
Tax credits | 14,177 | $ 6,227 | $ 4,447 | |||
Effective Income Tax Rate Reconciliation, Tax Credit, Percent | 3.90% | 2.20% | 3.00% | |||
Valuation allowance for deferred tax assets | 2,000 | $ 1,200 | $ 12,982 | |||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | 0.50% | 0.40% | 8.70% | |||
Depreciation and amortization | 1,223 | $ 362 | $ 1,842 | |||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Depreciation, Percent | 0.30% | 0.10% | 1.20% | |||
State taxes, net of federal income tax benefit | (20,155) | $ (14,450) | $ (7,511) | |||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | (5.50%) | (4.90%) | (5.00%) | |||
TCJA adjustment | $ 1,300 | 112,458 | $ 0 | $ 0 | ||
Effective Income Tax Rate Reconciliation, Tax Cuts and Jobs Act of 2017, Percent | (30.50%) | (0.00%) | (0.00%) | |||
NOL reconciliation | 0 | $ (2,210) | $ (3,691) | |||
Effective Income Tax Reconciliation Change Net Operating Loss, Percentage | (0.00%) | (0.80%) | (2.50%) | |||
Other, net | (698) | $ 970 | $ 491 | |||
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | (0.20%) | 0.30% | 0.30% | |||
Income tax expense | (197,600) | $ (109,400) | $ (43,700) | |||
Effective Income Tax Rate Reconciliation, Percent | (53.70%) | (37.70%) | (29.30%) | |||
Reconciliation of the beginning and ending balances of the gross unrecognized benefits | ||||||
Balance at beginning of year | 56 | $ 56 | $ 56 | |||
Reductions due to lapse of statute of limitations | (56) | 0 | 0 | |||
Balance at the end of year | $ 0 | $ 0 | $ 56 | $ 56 |
Notes Payable (Schedule of Note
Notes Payable (Schedule of Notes Payable) (Details) - USD ($) | Nov. 30, 2018 | Nov. 30, 2017 | Feb. 17, 2015 | Mar. 25, 2014 | Mar. 25, 2014 | Mar. 25, 2014 | Oct. 29, 2013 | Oct. 29, 2013 | Oct. 29, 2013 | Jan. 29, 2013 | Jan. 29, 2013 | Jan. 29, 2013 | Jul. 31, 2012 | Jul. 31, 2012 | Jul. 31, 2012 | Feb. 07, 2012 | Feb. 07, 2012 | Feb. 07, 2012 | Apr. 03, 2006 | |||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Notes payable | $ 2,060,263,000 | $ 2,324,845,000 | ||||||||||||||||||||
Convertible senior notes due February 1, 2019 at 1.375% | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.375% | 1.375% | ||||||||||||||||||||
Mortgages and land contracts due to land sellers and other loans (at interest rates of 7% at November 30, 2013 and 6% to 7% at November 30, 2012) | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | |||||||||||||||||||||
Notes payable | $ 40,038,000 | $ 10,203,000 | ||||||||||||||||||||
Mortgages and land contracts due to land sellers and other loans (at interest rates of 7% at November 30, 2013 and 6% to 7% at November 30, 2012) | Minimum | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | |||||||||||||||||||||
Mortgages and land contracts due to land sellers and other loans (at interest rates of 7% at November 30, 2013 and 6% to 7% at November 30, 2012) | Maximum | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | |||||||||||||||||||||
Senior Notes [Member] | Senior notes due September 15, 2017 at 9.10% | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.10% | |||||||||||||||||||||
Senior Notes [Member] | Senior notes due June 15, 2018 at 7 1/4% | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | |||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 7.30% | |||||||||||||||||||||
Notes payable | $ 0 | $ 299,867,000 | ||||||||||||||||||||
Debt Instrument, Face Amount | $ 300,000,000 | |||||||||||||||||||||
Senior Notes [Member] | Senior notes due May 15, 2019 at 4.75% | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | 4.75% | ||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 5.00% | 5.00% | ||||||||||||||||||||
Notes payable | $ 399,483,000 | $ 398,397,000 | ||||||||||||||||||||
Debt Instrument, Face Amount | [1] | $ 400,000,000 | ||||||||||||||||||||
Senior Notes [Member] | Senior notes due March 15, 2020 at 8.00% | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | ||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 8.50% | 8.50% | ||||||||||||||||||||
Notes payable | $ 347,790,000 | $ 346,238,000 | ||||||||||||||||||||
Debt Instrument, Face Amount | [2] | $ 350,000,000 | ||||||||||||||||||||
Senior Notes [Member] | Senior notes due December 15, 2021 at 7.00% | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | 7.00% | ||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 7.20% | 7.20% | ||||||||||||||||||||
Notes payable | $ 447,359,000 | $ 446,608,000 | ||||||||||||||||||||
Debt Instrument, Face Amount | $ 450,000,000 | [1] | $ 450,000,000 | |||||||||||||||||||
Senior Notes [Member] | Senior notes due September 15, 2022 at 7.50% | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | 7.50% | ||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 7.70% | 7.70% | ||||||||||||||||||||
Notes payable | $ 347,731,000 | $ 347,234,000 | ||||||||||||||||||||
Debt Instrument, Face Amount | $ 350,000,000 | $ 350,000,000 | [2] | |||||||||||||||||||
Senior Notes [Member] | Senior Notes Due Two Thousand Twenty Three At Seven Point Six Two Five Percent [Domain] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.625% | 7.625% | ||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 7.80% | |||||||||||||||||||||
Notes payable | $ 248,074,000 | $ 247,726,000 | ||||||||||||||||||||
Debt Instrument, Face Amount | [1] | $ 250,000,000 | ||||||||||||||||||||
Convertible Notes Payable [Member] | Convertible senior notes due February 1, 2019 at 1.375% | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.375% | 1.375% | ||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 1.90% | 1.90% | ||||||||||||||||||||
Notes payable | $ 229,788,000 | $ 228,572,000 | ||||||||||||||||||||
Debt Instrument, Face Amount | [3] | $ 230,000,000 | ||||||||||||||||||||
[1] | (a)At our option, these notes may be redeemed, in whole at any time or from time to time in part, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes being redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the notes being redeemed (exclusive of interest accrued to the applicable redemption date), discounted to the redemption date at a defined rate, plus, in each case, accrued and unpaid interest on the notes being redeemed to, but excluding, the applicable redemption date, except that three months prior to the stated maturity dates for the 4.75% Senior Notes due 2019 and the 7.00% Senior Notes due 2021 and until their respective maturity, and six months prior to the stated maturity date for the 7.625% Senior Notes due 2023 and until their maturity, the redemption price will be equal to 100% of the principal amount of the notes being redeemed, plus, in each case, accrued and unpaid interest on the notes being redeemed to, but excluding, the applicable redemption date. | |||||||||||||||||||||
[2] | (b)At our option, these notes may be redeemed, in whole at any time or from time to time in part, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes being redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the notes being redeemed (exclusive of interest accrued to the applicable redemption date), discounted to the redemption date at a defined rate, plus, in each case, accrued and unpaid interest on the notes being redeemed to the applicable redemption date. | |||||||||||||||||||||
[3] | (c)Prior to the stated maturity date, we may, at our option, redeem all or part of the notes at a redemption price equal to 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest to, but excluding, the redemption date. |
Notes Payable (Narrative) (Deta
Notes Payable (Narrative) (Details) | Jun. 15, 2018USD ($) | Sep. 15, 2017USD ($) | Jan. 13, 2017USD ($) | Jan. 29, 2013$ / sharesRateshares | Feb. 28, 2017USD ($) | Nov. 30, 2018USD ($)shares | Nov. 30, 2017USD ($)Rateshares | Nov. 30, 2016USD ($)shares | Nov. 30, 2013 | Jul. 27, 2017USD ($) | Feb. 17, 2015Rate | Mar. 25, 2014Rate | Oct. 29, 2013Rate | Jul. 31, 2012Rate | Feb. 07, 2012Rate | Jul. 30, 2009Rate | Apr. 03, 2006Rate | |
Debt Instrument [Line Items] | ||||||||||||||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 9,800,000 | $ 15,400,000 | ||||||||||||||||
Conversion rate | 0.0365297 | 0.0365297 | ||||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 500,000,000 | |||||||||||||||||
Incremental Common Shares Attributable to Conversion of Debt Securities | shares | 8,402,000 | 8,402,000 | 8,402,000 | |||||||||||||||
Letters of Credit Outstanding, Amount | $ 28,000,000 | $ 37,600,000 | ||||||||||||||||
Primarily inventories carrying value | 132,600,000 | |||||||||||||||||
Repayments of Long-term Debt | $ 300,000,000 | $ 270,326,000 | $ 0 | |||||||||||||||
Common Stock, Capital Shares Reserved for Future Issuance | shares | 12,602,735 | |||||||||||||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||||||||||||||||
Principal payments on senior notes, mortgages and land contracts due to land sellers and other loans due 2019 | $ 670,000,000 | |||||||||||||||||
Principal payments on senior notes, mortgages and land contracts due to land sellers and other loans due 2020 | 350,000,000 | |||||||||||||||||
Principal payments on senior notes, mortgages and land contracts due to land sellers and other loans due 2021 | 0 | |||||||||||||||||
Principal payments on senior notes, mortgages and land contracts due to land sellers and other loans due 2022 | 800,000,000 | |||||||||||||||||
Principal payments on senior notes, mortgages and land contracts due to land sellers and other loans due 2023 | 250,000,000 | |||||||||||||||||
Principal payments on senior notes, mortgages and land contracts due to land sellers and other loans due thereafter | $ 0 | |||||||||||||||||
Convertible senior notes due February 1, 2019 at 1.375% | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Senior notes, rate | 1.375% | 1.375% | ||||||||||||||||
Convertible Notes Payable [Member] | Convertible senior notes due February 1, 2019 at 1.375% | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Conversion Price Premium | Rate | 100.00% | |||||||||||||||||
Incremental Common Shares Attributable to Conversion of Debt Securities | shares | 8,401,831 | |||||||||||||||||
Percentage of Principal Amount for Purchase of Notes if Fundamental Change | 100.00% | |||||||||||||||||
Senior notes, rate | 1.375% | 1.375% | ||||||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | shares | 36.5297 | |||||||||||||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 27.37 | |||||||||||||||||
Mortgages and Land Contracts Due to Land Sellers and Other Loans [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Senior notes, rate | 7.00% | |||||||||||||||||
Senior Notes [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Percentage of principal amount for purchase of notes if change in control | 101.00% | |||||||||||||||||
Senior Notes [Member] | Senior Notes Due Two Thousand Twenty Three At Seven Point Six Two Five Percent [Domain] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Conversion Price Premium | Rate | 100.00% | |||||||||||||||||
Senior notes, rate | 7.625% | 7.625% | ||||||||||||||||
Senior Notes [Member] | Senior notes due May 15, 2019 at 4.75% | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Conversion Price Premium | Rate | 100.00% | |||||||||||||||||
Senior notes, rate | 4.75% | 4.75% | ||||||||||||||||
Senior Notes [Member] | Senior notes due September 15, 2022 at 7.50% | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Conversion Price Premium | Rate | 100.00% | |||||||||||||||||
Senior notes, rate | 7.50% | 7.50% | ||||||||||||||||
Senior Notes [Member] | Senior notes due December 15, 2021 at 7.00% | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Conversion Price Premium | Rate | 100.00% | |||||||||||||||||
Senior notes, rate | 7.00% | 7.00% | ||||||||||||||||
Senior Notes [Member] | Senior notes due September 15, 2017 at 9.10% | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Conversion Price Premium | Rate | 100.00% | |||||||||||||||||
Repayments of Long-term Debt | $ 165,000,000 | |||||||||||||||||
Senior notes, rate | Rate | 9.10% | |||||||||||||||||
Extinguishment of Debt, Amount | $ 100,000,000 | $ 105,300,000 | ||||||||||||||||
Debt Instrument Redemption Aggregate Price | $ 5,700,000 | |||||||||||||||||
Senior Notes [Member] | Senior notes due June 15, 2018 at 7 1/4% | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Conversion Price Premium | Rate | 100.00% | |||||||||||||||||
Repayments of Long-term Debt | [1] | $ 300,000,000 | ||||||||||||||||
Senior notes, rate | 7.25% | |||||||||||||||||
Senior Notes [Member] | Senior notes due March 15, 2020 at 8.00% | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Conversion Price Premium | Rate | 100.00% | |||||||||||||||||
Senior notes, rate | 8.00% | 8.00% | ||||||||||||||||
Revolving Credit Facility [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Line of Credit Facility, Expiration Date | Jul. 27, 2021 | |||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 600,000,000 | |||||||||||||||||
Line of Credit Facility, Amount Outstanding | 0 | |||||||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 472,000,000 | |||||||||||||||||
Letter of Credit [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | 250,000,000 | |||||||||||||||||
Line of Credit Facility, Amount Outstanding | 28,010,000 | |||||||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 222,000,000 | |||||||||||||||||
LOC Facilities [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Letters of Credit Outstanding, Amount | $ 0 | $ 0 | ||||||||||||||||
Minimum | Mortgages and Land Contracts Due to Land Sellers and Other Loans [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Senior notes, rate | 3.00% | |||||||||||||||||
Minimum | Revolving Credit Facility [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% | |||||||||||||||||
Maximum | Mortgages and Land Contracts Due to Land Sellers and Other Loans [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Senior notes, rate | 6.00% | |||||||||||||||||
Maximum | Revolving Credit Facility [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.45% | |||||||||||||||||
[1] | (a)At our option, these notes may be redeemed, in whole at any time or from time to time in part, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes being redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the notes being redeemed (exclusive of interest accrued to the applicable redemption date), discounted to the redemption date at a defined rate, plus, in each case, accrued and unpaid interest on the notes being redeemed to, but excluding, the applicable redemption date, except that three months prior to the stated maturity dates for the 4.75% Senior Notes due 2019 and the 7.00% Senior Notes due 2021 and until their respective maturity, and six months prior to the stated maturity date for the 7.625% Senior Notes due 2023 and until their maturity, the redemption price will be equal to 100% of the principal amount of the notes being redeemed, plus, in each case, accrued and unpaid interest on the notes being redeemed to, but excluding, the applicable redemption date. |
Fair Value Disclosures (Assets
Fair Value Disclosures (Assets Mesaured at Fair Value on a Nonrecurring Basis) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment of Real Estate | $ (26,104) | $ (20,605) | $ (49,580) | |
Level 3 | Fair Value, Measurements, Nonrecurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Inventory Impacted by Pretax Noncash Inventory Impairment Charges, Carrying Value | 70,156 | 58,962 | ||
Impairment of Real Estate | (26,104) | (20,605) | ||
Assets, Fair Value Disclosure | [1] | $ 44,052 | $ 38,357 | |
[1] | (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. |
Fair Value Disclosures (Carryin
Fair Value Disclosures (Carrying Values and Estimated Fair Values of Financial Instruments) (Details) - Level 2 - USD ($) $ in Thousands | Nov. 30, 2018 | Nov. 30, 2017 | |
Senior Notes [Member] | Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior notes | [1] | $ 1,790,437 | $ 2,086,070 |
Senior Notes [Member] | Estimated Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior notes | 1,853,438 | 2,292,250 | |
Convertible Notes Payable [Member] | Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Convertible senior notes | [1] | 229,788 | 228,572 |
Convertible Notes Payable [Member] | Estimated Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Convertible senior notes | $ 229,425 | $ 278,300 | |
[1] | The carrying values for the senior notes and convertible senior notes, as presented, include unamortized debt issuance costs. Debt issuance costs are not factored into the estimated fair values of these notes. |
Fair Value Disclosures (Narrati
Fair Value Disclosures (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of Real Estate | $ 26,104 | $ 20,605 | $ 49,580 |
Estimate of Fair Value Measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | $ 44,100 | $ 38,400 |
Commitments and Contingencies_2
Commitments and Contingencies (Changes in Warranty Liability) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | ||
Changes in the Company's warranty liability | ||||
Balance at beginning of year | $ 69,798 | $ 56,682 | $ 49,085 | |
Warranties issued | 37,792 | 38,452 | 30,135 | |
Payments | [1] | (23,300) | (25,336) | (23,190) |
Adjustments | (1,800) | 0 | 652 | |
Balance at end of year | 82,490 | 69,798 | 56,682 | |
Self Insurance Reserve, Balance at beginning of year | 177,695 | 158,584 | 173,011 | |
Expenses Associated with Self Insurance | [2] | 20,436 | 20,371 | 24,808 |
Payments, Net of Recoveries for Self Insurance | [3] | (21,290) | (22,933) | (39,235) |
Self Insurance Reserve, Balance at end of year | 176,841 | 177,695 | 158,584 | |
Self Insurance [Member] | ||||
Loss Contingencies [Line Items] | ||||
Increase (Decrease) in Insurance Liabilities | [4] | $ 0 | $ 21,673 | $ 0 |
[1] | Payments for 2016 included $2.3 million to repair homes affected by water intrusion-related issues in certain of our communities in central and southwest Florida. | |||
[2] | These expenses are included in selling, general and administrative expenses and are largely offset by contributions from independent subcontractors participating in the wrap-up policy | |||
[3] | Includes net changes in estimated probable insurance and other recoveries, which are recorded in receivables, to present our self-insurance liability on a gross basis. | |||
[4] | The amount for 2017 reflected a change in estimate to increase our self-insurance liability based on an actuarially determined estimate that we believed had a higher probability of being adequate to cover future payments associated with unresolved claims, including claims incurred but not yet reported. This adjustment was included in selling, general and administrative expenses. |
Commitments and Contingencies_3
Commitments and Contingencies (Narrative) (Details) | 3 Months Ended | 12 Months Ended | ||||
Aug. 31, 2017USD ($) | Nov. 30, 2018USD ($)Homeclaim_filed | Nov. 30, 2017USD ($)property | Nov. 30, 2016USD ($)property | Nov. 30, 2015USD ($) | ||
Loss Contingencies [Line Items] | ||||||
Impairment of Real Estate | $ 26,104,000 | $ 20,605,000 | $ 49,580,000 | |||
Operating Leases, Rent Expense, Net | $ 8,600,000 | 8,100,000 | 7,500,000 | |||
Minimum warranty on electrical and other building systems | 2 years | |||||
Maximum Warranty on Electrical Heating Cooling Plumbing and Other Building Systems | 5 years | |||||
Standard Product Warranty Accrual, Payments | [1] | $ 23,300,000 | $ 25,336,000 | $ 23,190,000 | ||
Number of Land Parcels or Communities Associated with Non Cash Inventory Impairment Charges | property | 13 | 10 | ||||
Insurance Recoveries | $ 23,500,000 | |||||
Loss Contingency, Receivable, Estimated Recovery from Third Party | 11,600,000 | |||||
Commitments and Contingencies (Textual) [Abstract] | ||||||
Structural warranty provided by the company | 10 years | |||||
Warranty for other components of a home | 1 year | |||||
Company's warranty liability | $ 82,490,000 | 69,798,000 | $ 56,682,000 | $ 49,085,000 | ||
Company's estimated liabilities for construction defect | 176,841,000 | 177,695,000 | 158,584,000 | $ 173,011,000 | ||
Expenses associated with self-insurance | [2] | 20,436,000 | 20,371,000 | 24,808,000 | ||
Product Warranty Accrual, Preexisting, Increase (Decrease) | 1,800,000 | 0 | (652,000) | |||
Performance bonds | 689,300,000 | 606,700,000 | ||||
Letters of Credit Outstanding, Amount | 28,000,000 | 37,600,000 | ||||
Non refundable deposits related to land option and other similar contracts | 53,830,000 | 64,702,000 | ||||
Aggregate Purchase Price Associated with Land Option and Other Similar Contracts | $ 1,371,238,000 | 1,094,087,000 | ||||
Damages from Product Defects [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Minimum Number of Affected Homes for Construction Defect Claims | Home | 2 | |||||
Water Intrusion [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Standard Product Warranty Accrual, Payments | 2,300,000 | |||||
Reclassification of warranty recoveries to receivables | $ 0 | 0 | $ 2,151,000 | |||
Self Insurance [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Reclassification of warranty recoveries to receivables | 56,900,000 | 71,300,000 | ||||
Warranty and Other [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Reclassification of warranty recoveries to receivables | $ 4,800,000 | 4,100,000 | ||||
Northern California Townhome Community [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Loss Contingency, Damages Sought, Value | $ 100,000,000 | |||||
Chapter 558 of the Florida Statutes [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Loss Contingency, New Claims Filed, Number | claim_filed | 500 | |||||
Minimum | ||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||
Noncancelable operating leases, term | 3 years | |||||
Maximum | ||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||
Noncancelable operating leases, term | 5 years | |||||
LOC Facilities [Member] | ||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||
Letters of Credit Outstanding, Amount | $ 0 | $ 0 | ||||
Line of Credit Facility, Expiration Period | 1 year | |||||
[1] | Payments for 2016 included $2.3 million to repair homes affected by water intrusion-related issues in certain of our communities in central and southwest Florida. | |||||
[2] | These expenses are included in selling, general and administrative expenses and are largely offset by contributions from independent subcontractors participating in the wrap-up policy |
Commitments and Contingencies_4
Commitments and Contingencies (Schedule of Future Minimum Rental Payments for Operating Leases) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Operating Leased Assets [Line Items] | |||
2,019 | $ 8.7 | ||
2,020 | 6.4 | ||
2,021 | 4.3 | ||
2,022 | 2.9 | ||
2,023 | 2.3 | ||
Thereafter | 4.3 | ||
Rental expense on operating leases | $ 8.6 | $ 8.1 | $ 7.5 |
Minimum | |||
Operating Leased Assets [Line Items] | |||
Noncancelable operating leases, term | 3 years | ||
Maximum | |||
Operating Leased Assets [Line Items] | |||
Noncancelable operating leases, term | 5 years | ||
Noncancelable operating leases, renewal term | 5 years |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Feb. 29, 2016 | Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | May 14, 2018 | Jan. 12, 2016 | Nov. 30, 2015 | Jul. 17, 2014 | Jan. 29, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Common Stock, Shares Authorized | 290,000,000 | 290,000,000 | 290,000,000 | 290,000,000 | ||||||||||||||||
Authorized repurchase of common stock | 4,000,000 | |||||||||||||||||||
Excess Stock, Shares Authorized | 2,373,000 | |||||||||||||||||||
Common Stock, Shares, Issued | 119,195,914 | 117,945,525 | 119,195,914 | 117,945,525 | ||||||||||||||||
Stock repurchases | $ 35,039 | $ 0 | $ 85,938 | |||||||||||||||||
Treasury stock, Value | $ 8,476 | 6,673 | $ 2,421 | |||||||||||||||||
Stockholder's Equity (Textual) [Abstract] | ||||||||||||||||||||
Number of shares that can be purchased by exercising each right | 0.01 | 0.01 | ||||||||||||||||||
Purchase price for right holders | $ 85 | $ 85 | ||||||||||||||||||
Calendar days after a public announcement during which rights to be exercised | 10 days | |||||||||||||||||||
Business days after the commencement of a tender or exchange offer during which rights to be exercised | 10 days | |||||||||||||||||||
Beneficially ownership in company's outstanding common stock to be held by person or group to exercise rights | 4.90% | |||||||||||||||||||
Price at which company may redeem all of the then outstanding rights | 0.001 | $ 0.001 | ||||||||||||||||||
Cash dividend declared per share | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.025 | $ 0.025 | ||||||||
Director Plan SARs [Domain] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Common Stock, Shares Authorized | 680,000 | |||||||||||||||||||
Authorized repurchase of common stock | 680,000 | |||||||||||||||||||
Common Stock, Shares, Issued | 0 | 0 | ||||||||||||||||||
January 2016 Stock Repurchase Program [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Authorized repurchase of common stock | 4,000,000 | 10,000,000 | ||||||||||||||||||
Treasury Stock, Shares, Acquired | 1,806,053 | 8,373,000 | ||||||||||||||||||
Stock repurchases | $ 35,000 | $ 85,900 | ||||||||||||||||||
Not Part of a Share Repurchase Program [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Treasury stock, Value | $ 8,500 | $ 6,700 | $ 2,400 | |||||||||||||||||
Convertible senior notes due February 1, 2019 at 1.375% | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.375% | 1.375% | 1.375% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Changes in the Balances of each Component of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | $ (16,924) | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [1] | 1,892 | $ 1,698 | $ 1,635 |
Income tax benefit (expense) related to items of other comprehensive income (loss) | (2,749) | 578 | (841) | |
Other comprehensive income (loss), net of tax | 7,359 | (867) | 1,262 | |
Ending Balance | (9,565) | (16,924) | ||
Accumulated Define Benefit Plans Adjustment Member | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | (16,924) | (16,057) | ||
Net actuarial gain (loss) arising during the period | 8,216 | (3,143) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 1,892 | 1,698 | ||
Income tax benefit (expense) related to items of other comprehensive income (loss) | (2,749) | 578 | ||
Other comprehensive income (loss), net of tax | 7,359 | (867) | ||
Ending Balance | $ (9,565) | $ (16,924) | $ (16,057) | |
[1] | The accumulated other comprehensive loss components are included in the computation of net periodic benefit costs as further discussed in Note 20 – Postretirement Benefits. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Amounts Reclassified from Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amortization of net actuarial loss | $ 336 | $ 142 | $ 79 | |
Amortization of prior service cost | 1,556 | 1,556 | 1,556 | |
Total reclassifications | [1] | 1,892 | $ 1,698 | $ 1,635 |
Defined Benefit Plan, Expected Amortization of Gain (Loss), Next Fiscal Year | $ 1,600 | |||
[1] | The accumulated other comprehensive loss components are included in the computation of net periodic benefit costs as further discussed in Note 20 – Postretirement Benefits. |
Employee Benefit and Stock Pl_3
Employee Benefit and Stock Plans (Narrative) (Details) $ / shares in Units, $ in Thousands | Oct. 05, 2018$ / shares | Oct. 05, 2017$ / shares | Oct. 06, 2016$ / shares | Nov. 30, 2018USD ($)$ / sharesshares | Nov. 30, 2017USD ($)$ / sharesshares | Nov. 30, 2016USD ($)$ / sharesshares | Apr. 07, 2016shares | Nov. 30, 2015shares | Apr. 03, 2014shares |
Employee Benefit and Stock Plans (Textual) [Abstract] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | 0 | 1,012,686 | ||||||
Employee Benefit and Stock Plan (Additional Textual) [Abstract] | |||||||||
Exercises in period, total intrinsic value | $ | $ 11,800 | $ 12,100 | $ 1,400 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 1,195,926 | 1,650,360 | 551,898 | ||||||
Intrinsic value of stock options outstanding | $ | $ 51,900 | $ 136,300 | $ 24,500 | ||||||
Intrinsic value of stock options exercisable | $ | 50,500 | 121,300 | $ 23,300 | ||||||
Weighted average fair value of stock options granted | $ / shares | $ 5.82 | ||||||||
Tax shortfall from cancellation of stock awards | $ | 3,300 | $ 2,200 | |||||||
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Financing Activities | $ | $ 0 | $ 958 | $ 186 | ||||||
Shares of common stock held in trust | 8,157,235 | 8,897,954 | |||||||
Share Based payments award terms of Award | 5 years | ||||||||
Stock Options | |||||||||
Employee Benefit and Stock Plans (Textual) [Abstract] | |||||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 10 months 30 days | ||||||||
Total unrecognized stock-based compensation expense related to unvested stock option awards | $ | $ 100 | ||||||||
Restricted Stock | |||||||||
Employee Benefit and Stock Plans (Textual) [Abstract] | |||||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 3 years | ||||||||
Minimum period of restriction imposed on share grant lapse | 3 years | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 303,030 | 321,835 | 453,703 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 23.05 | $ 24.49 | $ 15.73 | ||||||
Total unrecognized stock-based compensation expense related to unvested stock option awards | $ | $ 11,600 | ||||||||
Employee Benefit and Stock Plan (Additional Textual) [Abstract] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 555,457 | 503,926 | 604,619 | 416,977 | |||||
Performance Shares | |||||||||
Employee Benefit and Stock Plans (Textual) [Abstract] | |||||||||
Minimum period of restriction imposed on share grant lapse | 3 years | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 603,424 | 424,797 | 369,281 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 23.05 | $ 25.64 | $ 16.21 | $ 25.70 | $ 22.99 | $ 13.81 | |||
Total unrecognized stock-based compensation expense related to unvested stock option awards | $ | $ 27,400 | ||||||||
Employee Benefit and Stock Plan (Additional Textual) [Abstract] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,090,967 | 925,232 | 809,860 | 820,209 | |||||
Director Plan SARs [Domain] | |||||||||
Employee Benefit and Stock Plans (Textual) [Abstract] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 308,880 | 308,880 | 452,983 | ||||||
Non-Employee Director Deferred Common Stock [Domain] | |||||||||
Employee Benefit and Stock Plans (Textual) [Abstract] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 490,240 | 456,875 | 485,632 | ||||||
Maximum | Performance Shares | |||||||||
Employee Benefit and Stock Plans (Textual) [Abstract] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants, Award Share Percentage | 200.00% | ||||||||
Minimum | Performance Shares | |||||||||
Employee Benefit and Stock Plans (Textual) [Abstract] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants, Award Share Percentage | 0.00% | ||||||||
Equity Incentive Two Thousand Fourteen Plan [Member] [Member] | |||||||||
Employee Benefit and Stock Plans (Textual) [Abstract] | |||||||||
Number of shares authorized for issuance of stock based awards to employees | 12,300,000 | 7,500,000 | 4,800,000 | ||||||
Grant of stock option, Reduce the plan share capacity per share | 1 | ||||||||
Grant of restricted stock, Reduce the Plan share capacity per share | 1.78 | ||||||||
Employee Benefit and Stock Plan (Additional Textual) [Abstract] | |||||||||
Share Based payments award terms of Award | 10 years | ||||||||
Performance Based Incentive Plan for Senior Management [Member] | |||||||||
Employee Benefit and Stock Plan (Additional Textual) [Abstract] | |||||||||
Share Based payments award terms of Award | 15 years | ||||||||
2010 Equity Incentive Plan | |||||||||
Employee Benefit and Stock Plans (Textual) [Abstract] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | ||||||||
Saving Plan | |||||||||
Employee Benefit and Stock Plans (Textual) [Abstract] | |||||||||
Aggregate cost related to saving plan | $ | $ 6,000 | $ 6,200 | $ 5,300 | ||||||
Net assets invested in funds consisting common stock | 5.00% | 7.00% | 5.00% | ||||||
Director Plan SARs [Domain] | |||||||||
Employee Benefit and Stock Plan (Additional Textual) [Abstract] | |||||||||
Share Based payments award terms of Award | 15 years | ||||||||
Restricted Stock Vesting Period 12-1-2017 ending 11-30-2020 [Domain] | |||||||||
Employee Benefit and Stock Plans (Textual) [Abstract] | |||||||||
Minimum period of restriction imposed on share grant lapse | 3 years | ||||||||
PSU 2014 [Domain] | Performance Shares | |||||||||
Employee Benefit and Stock Plans (Textual) [Abstract] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 125,460 |
Employee Benefit and Stock Pl_4
Employee Benefit and Stock Plans (Stock Based Compensation Expense) (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 05, 2018 | Oct. 05, 2017 | Oct. 06, 2016 | Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense related to stock option grants | $ 15,861 | $ 14,633 | $ 16,850 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 1,195,926 | 1,650,360 | 551,898 | ||||
Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense related to stock option grants | $ 917 | $ 2,592 | $ 7,076 | ||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||||
Stock-based compensation expense related to stock option grants | $ 4,600 | $ 4,177 | $ 2,630 | ||||
Restricted stock transactions | |||||||
Outstanding at beginning of year, Shares | 503,926 | 604,619 | 416,977 | ||||
Weighted average per share grant date fair value in dollars per share | $ 23.19 | $ 21.69 | $ 16.24 | $ 15.88 | |||
Granted, Shares | 303,030 | 321,835 | 453,703 | ||||
Granted, Weighted Average per Share Grant Date Fair Value | $ 23.05 | $ 24.49 | $ 15.73 | ||||
Vested, Shares | (221,951) | (364,670) | (252,854) | ||||
Vested, Weighted Average per Share Grant Date Fair Value | $ 19.79 | $ 16.09 | $ 14.78 | ||||
Cancelled, Shares | (29,548) | (57,858) | (13,207) | ||||
Cancelled, Weighted Average per Share Grant Date Fair Value | $ 21.76 | $ 15.61 | $ 15.12 | ||||
Outstanding at end of year, Shares | 555,457 | 503,926 | 604,619 | ||||
Performance Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||||
Stock-based compensation expense related to stock option grants | $ 8,790 | $ 6,439 | $ 5,343 | ||||
Restricted stock transactions | |||||||
Outstanding at beginning of year, Shares | 925,232 | 809,860 | 820,209 | ||||
Weighted average per share grant date fair value in dollars per share | $ 18.70 | $ 20.09 | $ 17.19 | $ 15.52 | |||
Granted, Shares | 603,424 | 424,797 | 369,281 | ||||
Granted, Weighted Average per Share Grant Date Fair Value | $ 23.05 | $ 25.64 | $ 16.21 | $ 25.70 | $ 22.99 | $ 13.81 | |
Vested, Shares | (437,689) | (278,460) | (374,630) | ||||
Vested, Weighted Average per Share Grant Date Fair Value | $ 31.28 | $ 16.67 | $ 10.21 | ||||
Cancelled, Shares | 0 | (30,965) | (5,000) | ||||
Cancelled, Weighted Average per Share Grant Date Fair Value | $ 0 | $ 14.92 | $ 16.21 | ||||
Outstanding at end of year, Shares | 1,090,967 | 925,232 | 809,860 | ||||
Director Stock Units [Domain] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense related to stock option grants | $ 1,554 | $ 1,425 | $ 1,801 | ||||
Restricted Stock Vesting Period 12-1-2017 ending 11-30-2020 [Domain] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||||
PSU 2015 [Domain] | Performance Shares | |||||||
Restricted stock transactions | |||||||
Granted, Shares | 194,529 | ||||||
Maximum | Performance Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants, Award Share Percentage | 200.00% | ||||||
Minimum | Performance Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants, Award Share Percentage | 0.00% |
Employee Benefit and Stock Pl_5
Employee Benefit and Stock Plans (Stock Option Transactions) (Details) - $ / shares | Oct. 05, 2018 | Oct. 05, 2017 | Oct. 06, 2016 | Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share Based payments award terms of Award | 5 years | ||||||
Stock option transactions | |||||||
Options outstanding at beginning of year, Options | 9,265,240 | 12,731,545 | 12,635,644 | ||||
Options outstanding at beginning of year, Weighted Average Exercise Price in dollars per share | $ 17.64 | $ 18.95 | $ 19.39 | ||||
Granted, Options | 0 | 0 | 1,012,686 | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price in dollars per share | $ 0 | $ 0 | $ 16.21 | ||||
Employee stock options/other, Shares | (1,195,926) | (1,650,360) | (551,898) | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price in dollars per share | $ 16.73 | $ 16.01 | $ 13.95 | ||||
Cancelled, Options | (831,770) | (1,815,945) | (364,887) | ||||
Cancelled, Weighted Average Exercise Price in dollars per share | $ 33.05 | $ 28.31 | $ 34.07 | ||||
Options outstanding at end of year, Options | 7,237,544 | 9,265,240 | 12,731,545 | ||||
Options outstanding at end of year, Weighted Average Exercise Price in dollars per share | $ 16.02 | $ 17.64 | $ 18.95 | ||||
Options exercisable at end of year, Options | 6,948,670 | 8,307,632 | 10,506,810 | ||||
Options exercisable at end of period, Weighted Average Exercise Price in dollars per share | $ 16.01 | $ 17.86 | $ 19.70 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 6,418,197 | 7,495,792 | 7,034,523 | ||||
Equity Incentive Two Thousand Fourteen Plan [Member] [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share Based payments award terms of Award | 10 years | ||||||
Director Plan SARs [Domain] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share Based payments award terms of Award | 15 years | ||||||
Performance Based Incentive Plan for Senior Management [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share Based payments award terms of Award | 15 years | ||||||
Performance Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,090,967 | 925,232 | 809,860 | 820,209 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 603,424 | 424,797 | 369,281 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 23.05 | $ 25.64 | $ 16.21 | $ 25.70 | $ 22.99 | $ 13.81 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (437,689) | (278,460) | (374,630) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 31.28 | $ 16.67 | $ 10.21 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | (30,965) | (5,000) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 0 | $ 14.92 | $ 16.21 | ||||
Weighted average per share grant date fair value in dollars per share | $ 18.70 | $ 20.09 | $ 17.19 | $ 15.52 |
Employee Benefit and Stock Pl_6
Employee Benefit and Stock Plans (Stock Options Outstanting and Exercisable) (Details) | 12 Months Ended |
Nov. 30, 2018$ / sharesshares | |
Stock options outstanding and stock options exercisable | |
Range of Exercise Price in dollars per share, Minimum | $ 6.32 |
Range of Exercise Price in dollars per share, Maximum | $ 45.68 |
Options Outstanding, Options | shares | 7,237,544 |
Options Outstanding, Weighted Average Exercise Price in dollars per share | $ 16.02 |
Options Outstanding, Weighted Average Remaining Contractual Life | 4 years 1 day |
Options Exercisable, Options | shares | 6,948,670 |
Options Exercisable, Weighted Average Exercise Price in dollars per share | $ 16.01 |
Options Exercisable, Weighted Average Remaining Contractual Life | 3 years 9 months 30 days |
$ 6.32 to $11.05 | |
Stock options outstanding and stock options exercisable | |
Range of Exercise Price in dollars per share, Minimum | $ 6.32 |
Range of Exercise Price in dollars per share, Maximum | $ 11.05 |
Options Outstanding, Options | shares | 1,201,167 |
Options Outstanding, Weighted Average Exercise Price in dollars per share | $ 6.36 |
Options Outstanding, Weighted Average Remaining Contractual Life | 2 years 10 months 30 days |
Options Exercisable, Options | shares | 1,201,167 |
Options Exercisable, Weighted Average Exercise Price in dollars per share | $ 6.36 |
$11.06 to $14.62 | |
Stock options outstanding and stock options exercisable | |
Range of Exercise Price in dollars per share, Minimum | 11.06 |
Range of Exercise Price in dollars per share, Maximum | $ 14.62 |
Options Outstanding, Options | shares | 2,048,758 |
Options Outstanding, Weighted Average Exercise Price in dollars per share | $ 12.99 |
Options Outstanding, Weighted Average Remaining Contractual Life | 4 years 1 day |
Options Exercisable, Options | shares | 2,048,758 |
Options Exercisable, Weighted Average Exercise Price in dollars per share | $ 12.99 |
$14.63 to $16.20 | |
Stock options outstanding and stock options exercisable | |
Range of Exercise Price in dollars per share, Minimum | 14.63 |
Range of Exercise Price in dollars per share, Maximum | $ 16.20 |
Options Outstanding, Options | shares | 1,906,964 |
Options Outstanding, Weighted Average Exercise Price in dollars per share | $ 15.14 |
Options Outstanding, Weighted Average Remaining Contractual Life | 4 years 1 month 1 day |
Options Exercisable, Options | shares | 1,906,964 |
Options Exercisable, Weighted Average Exercise Price in dollars per share | $ 15.14 |
$16.21 to $28.10 | |
Stock options outstanding and stock options exercisable | |
Range of Exercise Price in dollars per share, Minimum | 16.21 |
Range of Exercise Price in dollars per share, Maximum | $ 28.10 |
Options Outstanding, Options | shares | 1,300,596 |
Options Outstanding, Weighted Average Exercise Price in dollars per share | $ 16.35 |
Options Outstanding, Weighted Average Remaining Contractual Life | 6 years 9 months 1 day |
Options Exercisable, Options | shares | 1,011,722 |
Options Exercisable, Weighted Average Exercise Price in dollars per share | $ 16.39 |
$28.11 to $45.68 | |
Stock options outstanding and stock options exercisable | |
Range of Exercise Price in dollars per share, Minimum | 28.11 |
Range of Exercise Price in dollars per share, Maximum | $ 45.68 |
Options Outstanding, Options | shares | 780,059 |
Options Outstanding, Weighted Average Exercise Price in dollars per share | $ 40.46 |
Options Outstanding, Weighted Average Remaining Contractual Life | 9 months 1 day |
Options Exercisable, Options | shares | 780,059 |
Options Exercisable, Weighted Average Exercise Price in dollars per share | $ 40.46 |
Employee Benefit and Stock Pl_7
Employee Benefit and Stock Plans (Option Pricing Model) (Details) | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Assumptions of Black-Scholes option-pricing model | |||
Risk-free interest rate | 0.00% | 0.00% | 1.30% |
Expected volatility factor | 0.00% | 0.00% | 41.30% |
Expected dividend yield | 0.00% | 0.00% | 0.60% |
Expected term | 5 years |
Postretirement Benefits (Detail
Postretirement Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Postretirement Benefits Additional (Textual) [Abstract] | |||
Interest cost | $ 2,252 | $ 2,274 | $ 2,285 |
Amortization of prior service cost | 1,556 | 1,556 | 1,556 |
Service cost | 1,085 | 1,046 | 1,045 |
Amortization of net actuarial loss | 336 | 142 | 79 |
Total | 5,229 | 5,018 | 4,965 |
Liabilities related to postretirement benefit plan | $ 60,800 | $ 66,500 | |
Discounted rate for benefit plan | 4.10% | 3.50% | |
Defined Benefit Plan Disclosure [Line Items] | |||
Cash surrender value of insurance contracts | $ 73,721 | $ 75,236 | |
2,019 | 2,200 | ||
2,020 | 2,500 | ||
2,021 | 3,100 | ||
2,022 | 3,200 | ||
2,023 | 3,500 | ||
2024-2028 | 20,700 | ||
Supplemental Nonqualified Unfunded Retirement Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation, Period Increase (Decrease) | (900) | 3,900 | 400 |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 1,600 | 1,500 | 1,400 |
Cash surrender value of insurance contracts | 44,400 | 46,800 | |
Unfunded Death Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation, Period Increase (Decrease) | (300) | 1,500 | $ 200 |
Cash surrender value of insurance contracts | $ 18,200 | $ 18,500 |
Supplemental Disclosure to Co_3
Supplemental Disclosure to Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Summary of cash and cash equivalents at the end of the year: | ||||
Cash and cash equivalents | $ 575,119 | $ 720,861 | $ 593,000 | $ 560,341 |
Interest paid, net of amounts capitalized | 8,338 | 7,581 | 5,567 | |
Income taxes paid | 11,949 | 4,664 | 3,307 | |
Income taxes refunded | 220 | 202 | 550 | |
Supplemental disclosure of non-cash activities: | ||||
Increase (decrease) in consolidated inventories not owned | 16,098 | (44,833) | (59,413) | |
Inventories acquired through seller financing | 44,586 | 49,658 | 99,108 | |
Homebuilding [Member] | ||||
Summary of cash and cash equivalents at the end of the year: | ||||
Cash and cash equivalents | 574,359 | 720,630 | 592,086 | |
Financial services [Member] | ||||
Summary of cash and cash equivalents at the end of the year: | ||||
Cash and cash equivalents | 760 | 231 | 914 | |
Inspirada Builders LLC [Member] | ||||
Supplemental disclosure of non-cash activities: | ||||
Increase in inventories due to distributions of land and land development from an unconsolidated joint venture | 17,637 | 6,650 | 4,277 | |
Water Intrusion [Member] | ||||
Supplemental disclosure of non-cash activities: | ||||
Reclassification of warranty recoveries to receivables | $ 0 | $ 0 | $ 2,151 |
Supplemental Guarantor Inform_3
Supplemental Guarantor Information (Narrative) (Details) | 12 Months Ended |
Nov. 30, 2018 | |
Guarantees [Abstract] | |
Ownership share in guarantor subsidiaries | 100.00% |
Line of Credit Facility, Significant Subsidiary Threshold, Percent | 5.00% |
Line of Credit Facility, Non Guarantor Subsidiary Threshold, Percent | 10.00% |
Supplemental Guarantor Inform_4
Supplemental Guarantor Information (Condensed Consolidating Statements of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | ||
Condensed Consolidated Statements of Operations | ||||||||||||
Revenues | $ 1,348,609 | $ 1,225,347 | $ 1,101,423 | $ 871,623 | $ 1,403,138 | $ 1,144,001 | $ 1,002,794 | $ 818,596 | $ 4,547,002 | $ 4,368,529 | $ 3,594,646 | |
Homebuilding: | ||||||||||||
Revenues | 4,533,795 | 4,356,265 | 3,582,943 | |||||||||
Construction and land costs | (3,743,920) | (3,646,468) | (3,041,101) | |||||||||
Selling, general and administrative expenses | (444,154) | (426,394) | (389,441) | |||||||||
Operating income | 345,721 | 283,403 | 152,401 | |||||||||
Interest income | 3,514 | 1,240 | 529 | |||||||||
Interest Expense | [1] | 0 | (6,307) | (5,900) | ||||||||
Intercompany Interest Income (Expense) | 0 | 0 | 0 | |||||||||
Equity in income (loss) of unconsolidated joint ventures | 9,367 | 2,825 | (5,601) | |||||||||
Pretax income (loss) | 128,936 | 114,676 | 78,308 | 46,045 | 137,346 | 79,208 | 51,982 | 21,459 | 367,965 | 289,995 | 149,315 | |
Income tax expense | (197,600) | (109,400) | (43,700) | |||||||||
Income (Loss) from Subsidiaries, Net of Tax | 0 | 0 | 0 | |||||||||
Net income | $ 96,836 | $ 87,476 | $ 57,308 | $ (71,255) | $ 84,346 | $ 50,208 | $ 31,782 | $ 14,259 | 170,365 | 180,595 | 105,615 | |
KB Home Corporate | ||||||||||||
Condensed Consolidated Statements of Operations | ||||||||||||
Revenues | 0 | 0 | 0 | |||||||||
Homebuilding: | ||||||||||||
Revenues | 0 | 0 | 0 | |||||||||
Construction and land costs | 0 | 0 | 0 | |||||||||
Selling, general and administrative expenses | (101,152) | (91,120) | (91,859) | |||||||||
Operating income | (101,152) | (91,120) | (91,859) | |||||||||
Interest income | 3,273 | 1,232 | 470 | |||||||||
Interest Expense | (141,812) | (172,102) | (177,329) | |||||||||
Intercompany Interest Income (Expense) | 302,253 | 266,784 | 301,432 | |||||||||
Pretax income (loss) | 62,562 | 4,794 | 32,714 | |||||||||
Income tax expense | (62,100) | (8,800) | 17,200 | |||||||||
Income (Loss) from Subsidiaries, Net of Tax | 169,903 | 184,601 | 55,701 | |||||||||
Net income | 170,365 | 180,595 | 105,615 | |||||||||
Guarantor Subsidiaries | ||||||||||||
Condensed Consolidated Statements of Operations | ||||||||||||
Revenues | 4,198,969 | 4,034,057 | 3,243,928 | |||||||||
Homebuilding: | ||||||||||||
Revenues | 4,198,969 | 4,034,057 | 3,243,928 | |||||||||
Construction and land costs | (3,435,058) | (3,342,617) | (2,706,402) | |||||||||
Selling, general and administrative expenses | (311,815) | (298,498) | (254,210) | |||||||||
Operating income | 452,096 | 392,942 | 283,316 | |||||||||
Interest income | 11 | 8 | 55 | |||||||||
Interest Expense | (2,624) | (1,635) | (3,958) | |||||||||
Intercompany Interest Income (Expense) | (142,882) | (118,138) | (105,865) | |||||||||
Pretax income (loss) | 308,667 | 271,770 | 171,367 | |||||||||
Income tax expense | (101,200) | (100,000) | (52,700) | |||||||||
Income (Loss) from Subsidiaries, Net of Tax | 0 | 0 | 0 | |||||||||
Net income | 207,467 | 171,770 | 118,667 | |||||||||
Non-Guarantor Subsidiaries | ||||||||||||
Condensed Consolidated Statements of Operations | ||||||||||||
Revenues | 348,033 | 334,472 | 350,718 | |||||||||
Homebuilding: | ||||||||||||
Revenues | 334,826 | 322,208 | 339,015 | |||||||||
Construction and land costs | (308,862) | (303,851) | (334,699) | |||||||||
Selling, general and administrative expenses | (31,187) | (36,776) | (43,372) | |||||||||
Operating income | (5,223) | (18,419) | (39,056) | |||||||||
Interest income | 230 | 0 | 4 | |||||||||
Interest Expense | (5,262) | (3,434) | (3,946) | |||||||||
Intercompany Interest Income (Expense) | (9,673) | 22,218 | (16,234) | |||||||||
Pretax income (loss) | (3,264) | 13,431 | (54,766) | |||||||||
Income tax expense | (34,300) | (600) | (8,200) | |||||||||
Income (Loss) from Subsidiaries, Net of Tax | 0 | 0 | 0 | |||||||||
Net income | (37,564) | 12,831 | (62,966) | |||||||||
Homebuilding [Member] | ||||||||||||
Homebuilding: | ||||||||||||
Equity in income (loss) of unconsolidated joint ventures | 2,066 | (1,409) | (2,181) | |||||||||
Pretax income (loss) | 351,301 | 276,927 | 144,849 | |||||||||
Homebuilding [Member] | KB Home Corporate | ||||||||||||
Homebuilding: | ||||||||||||
Equity in income (loss) of unconsolidated joint ventures | 0 | 0 | 0 | |||||||||
Pretax income (loss) | 62,562 | 4,794 | 32,714 | |||||||||
Homebuilding [Member] | Guarantor Subsidiaries | ||||||||||||
Homebuilding: | ||||||||||||
Equity in income (loss) of unconsolidated joint ventures | 2,066 | (1,407) | (2,181) | |||||||||
Pretax income (loss) | 308,667 | 271,770 | 171,367 | |||||||||
Homebuilding [Member] | Non-Guarantor Subsidiaries | ||||||||||||
Homebuilding: | ||||||||||||
Equity in income (loss) of unconsolidated joint ventures | 0 | (2) | 0 | |||||||||
Pretax income (loss) | (19,928) | 363 | (59,232) | |||||||||
Financial services [Member] | ||||||||||||
Homebuilding: | ||||||||||||
Operating income | 9,363 | 8,834 | 7,886 | |||||||||
Equity in income (loss) of unconsolidated joint ventures | 7,301 | 4,234 | (3,420) | |||||||||
Pretax income (loss) | 16,664 | 13,068 | 4,466 | |||||||||
Financial services [Member] | KB Home Corporate | ||||||||||||
Homebuilding: | ||||||||||||
Pretax income (loss) | 0 | 0 | 0 | |||||||||
Financial services [Member] | Guarantor Subsidiaries | ||||||||||||
Homebuilding: | ||||||||||||
Pretax income (loss) | 0 | 0 | 0 | |||||||||
Financial services [Member] | Non-Guarantor Subsidiaries | ||||||||||||
Homebuilding: | ||||||||||||
Pretax income (loss) | 16,664 | 13,068 | 4,466 | |||||||||
Consolidating Adjustments | ||||||||||||
Condensed Consolidated Statements of Operations | ||||||||||||
Revenues | 0 | 0 | 0 | |||||||||
Homebuilding: | ||||||||||||
Revenues | 0 | 0 | 0 | |||||||||
Construction and land costs | 0 | 0 | 0 | |||||||||
Selling, general and administrative expenses | 0 | 0 | 0 | |||||||||
Operating income | 0 | 0 | 0 | |||||||||
Interest income | 0 | 0 | 0 | |||||||||
Interest Expense | 149,698 | 170,864 | 179,333 | |||||||||
Intercompany Interest Income (Expense) | (149,698) | (170,864) | (179,333) | |||||||||
Pretax income (loss) | 0 | 0 | 0 | |||||||||
Income tax expense | 0 | 0 | 0 | |||||||||
Income (Loss) from Subsidiaries, Net of Tax | (169,903) | (184,601) | (55,701) | |||||||||
Net income | (169,903) | (184,601) | (55,701) | |||||||||
Consolidating Adjustments | Homebuilding [Member] | ||||||||||||
Homebuilding: | ||||||||||||
Equity in income (loss) of unconsolidated joint ventures | 0 | 0 | 0 | |||||||||
Pretax income (loss) | 0 | 0 | 0 | |||||||||
Consolidating Adjustments | Financial services [Member] | ||||||||||||
Homebuilding: | ||||||||||||
Pretax income (loss) | $ 0 | $ 0 | $ 0 | |||||||||
[1] | Interest incurred and interest expensed for the year ended November 30, 2017 included a charge of $5.7 million for the early extinguishment of debt. |
Supplemental Guarantor Inform_5
Supplemental Guarantor Information (Condensed Consolidating Statements of Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Net income | $ 96,836 | $ 87,476 | $ 57,308 | $ (71,255) | $ 84,346 | $ 50,208 | $ 31,782 | $ 14,259 | $ 170,365 | $ 180,595 | $ 105,615 |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 10,108 | (1,445) | 2,103 | ||||||||
Other Comprehensive Income (Loss), before Tax | 10,108 | (1,445) | 2,103 | ||||||||
Income tax benefit (expense) related to items of other comprehensive income (loss) | (2,749) | 578 | (841) | ||||||||
Other comprehensive income (loss), net of tax | 7,359 | (867) | 1,262 | ||||||||
Comprehensive income | 177,724 | 179,728 | 106,877 | ||||||||
KB Home Corporate | |||||||||||
Net income | 170,365 | 180,595 | 105,615 | ||||||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 10,108 | (1,445) | 2,103 | ||||||||
Other Comprehensive Income (Loss), before Tax | 10,108 | (1,445) | 2,103 | ||||||||
Income tax benefit (expense) related to items of other comprehensive income (loss) | (2,749) | 578 | (841) | ||||||||
Other comprehensive income (loss), net of tax | 7,359 | (867) | 1,262 | ||||||||
Comprehensive income | 177,724 | 179,728 | 106,877 | ||||||||
Guarantor Subsidiaries | |||||||||||
Net income | 207,467 | 171,770 | 118,667 | ||||||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 0 | 0 | 0 | ||||||||
Other Comprehensive Income (Loss), before Tax | 0 | 0 | 0 | ||||||||
Income tax benefit (expense) related to items of other comprehensive income (loss) | 0 | 0 | 0 | ||||||||
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | ||||||||
Comprehensive income | 207,467 | 171,770 | 118,667 | ||||||||
Non-Guarantor Subsidiaries | |||||||||||
Net income | (37,564) | 12,831 | (62,966) | ||||||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 0 | 0 | 0 | ||||||||
Other Comprehensive Income (Loss), before Tax | 0 | 0 | 0 | ||||||||
Income tax benefit (expense) related to items of other comprehensive income (loss) | 0 | 0 | 0 | ||||||||
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | ||||||||
Comprehensive income | (37,564) | 12,831 | (62,966) | ||||||||
Consolidating Adjustments | |||||||||||
Net income | (169,903) | (184,601) | (55,701) | ||||||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 0 | 0 | 0 | ||||||||
Other Comprehensive Income (Loss), before Tax | 0 | 0 | 0 | ||||||||
Income tax benefit (expense) related to items of other comprehensive income (loss) | 0 | 0 | 0 | ||||||||
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | ||||||||
Comprehensive income | $ (169,903) | $ (184,601) | $ (55,701) |
Supplemental Guarantor Inform_6
Supplemental Guarantor Information (Condensed Consolidating Balance Sheets) (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | |
Assets | |||||
Cash and cash equivalents | $ 575,119 | $ 720,861 | $ 593,000 | $ 560,341 | |
Receivables | 292,830 | 244,213 | |||
Inventory, Operative Builders | 3,582,839 | 3,263,386 | |||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 61,960 | 64,794 | |||
Deferred tax assets, net | 441,820 | 633,637 | |||
Other assets | 107,383 | 102,498 | |||
Investments in subsidiaries | 0 | 0 | |||
Total assets | 5,073,571 | 5,041,515 | |||
Due from Affiliates | 0 | 0 | |||
Liabilities and stockholders' equity | |||||
Accounts payable, accrued expenses and other liabilities | 924,313 | 789,393 | |||
Notes payable | 2,060,263 | 2,324,845 | |||
Financial services | 1,495 | 966 | |||
Due to Affiliate | 0 | 0 | |||
Stockholder's equity | 2,087,500 | 1,926,311 | 1,723,145 | 1,690,834 | |
Total liabilities and Stockholders' equity | 5,073,571 | 5,041,515 | |||
KB Home Corporate | |||||
Assets | |||||
Cash and cash equivalents | 429,977 | 575,193 | 463,100 | 444,850 | |
Receivables | 5,135 | 24,815 | |||
Inventory, Operative Builders | 0 | 0 | |||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 0 | 0 | |||
Deferred tax assets, net | 84,564 | 250,747 | |||
Other assets | 95,738 | 91,592 | |||
Investments in subsidiaries | 67,657 | 49,776 | |||
Total assets | 4,252,493 | 4,406,360 | |||
Due from Affiliates | 3,569,422 | 3,414,237 | |||
Liabilities and stockholders' equity | |||||
Accounts payable, accrued expenses and other liabilities | 126,176 | 163,984 | |||
Notes payable | 1,995,115 | 2,289,532 | |||
Financial services | 0 | 0 | |||
Due to Affiliate | 43,702 | 26,533 | |||
Stockholder's equity | 2,087,500 | 1,926,311 | |||
Total liabilities and Stockholders' equity | 4,252,493 | 4,406,360 | |||
Guarantor Subsidiaries | |||||
Assets | |||||
Cash and cash equivalents | 114,269 | 104,120 | 105,903 | 99,445 | |
Receivables | 198,465 | 145,067 | |||
Inventory, Operative Builders | 3,314,386 | 2,959,606 | |||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 61,960 | 64,794 | |||
Deferred tax assets, net | 303,669 | 243,523 | |||
Other assets | 9,530 | 8,954 | |||
Investments in subsidiaries | 0 | 0 | |||
Total assets | 4,002,279 | 3,526,064 | |||
Due from Affiliates | 0 | 0 | |||
Liabilities and stockholders' equity | |||||
Accounts payable, accrued expenses and other liabilities | 584,321 | 374,051 | |||
Notes payable | 40,038 | 9,283 | |||
Financial services | 0 | 0 | |||
Due to Affiliate | 3,377,920 | 3,142,730 | |||
Stockholder's equity | 0 | 0 | |||
Total liabilities and Stockholders' equity | 4,002,279 | 3,526,064 | |||
Non-Guarantor Subsidiaries | |||||
Assets | |||||
Cash and cash equivalents | 30,873 | 41,548 | 23,997 | 16,046 | |
Receivables | 89,230 | 74,331 | |||
Inventory, Operative Builders | 268,453 | 303,780 | |||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 0 | 0 | |||
Deferred tax assets, net | 53,587 | 139,367 | |||
Other assets | 2,115 | 1,952 | |||
Investments in subsidiaries | 0 | 0 | |||
Total assets | 614,638 | 681,096 | |||
Due from Affiliates | 158,760 | 107,992 | |||
Liabilities and stockholders' equity | |||||
Accounts payable, accrued expenses and other liabilities | 213,816 | 251,358 | |||
Notes payable | 25,110 | 26,030 | |||
Financial services | 1,495 | 966 | |||
Due to Affiliate | 306,560 | 352,966 | |||
Stockholder's equity | 67,657 | 49,776 | |||
Total liabilities and Stockholders' equity | 614,638 | 681,096 | |||
Homebuilding [Member] | |||||
Assets | |||||
Cash and cash equivalents | 574,359 | 720,630 | 592,086 | ||
Total assets | 5,061,191 | 5,029,158 | |||
Liabilities and stockholders' equity | |||||
Total Homebuilding | 2,984,576 | 3,114,238 | |||
Homebuilding [Member] | KB Home Corporate | |||||
Assets | |||||
Cash and cash equivalents | 429,977 | 575,193 | |||
Total assets | 615,414 | 942,347 | |||
Liabilities and stockholders' equity | |||||
Total Homebuilding | 2,121,291 | 2,453,516 | |||
Homebuilding [Member] | Guarantor Subsidiaries | |||||
Assets | |||||
Cash and cash equivalents | 114,269 | 104,120 | |||
Total assets | 4,002,279 | 3,526,064 | |||
Liabilities and stockholders' equity | |||||
Total Homebuilding | 624,359 | 383,334 | |||
Homebuilding [Member] | Non-Guarantor Subsidiaries | |||||
Assets | |||||
Cash and cash equivalents | 30,113 | 41,317 | |||
Total assets | 443,498 | 560,747 | |||
Liabilities and stockholders' equity | |||||
Total Homebuilding | 238,926 | 277,388 | |||
Financial services [Member] | |||||
Assets | |||||
Cash and cash equivalents | 760 | 231 | 914 | ||
Receivables | 2,885 | 1,724 | |||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | [1] | 8,594 | 10,340 | ||
Other assets | 141 | 62 | |||
Total assets | 12,380 | 12,357 | |||
Liabilities and stockholders' equity | |||||
Accounts payable, accrued expenses and other liabilities | 1,495 | 966 | |||
Financial services [Member] | KB Home Corporate | |||||
Assets | |||||
Total assets | 0 | 0 | |||
Financial services [Member] | Guarantor Subsidiaries | |||||
Assets | |||||
Total assets | 0 | 0 | |||
Financial services [Member] | Non-Guarantor Subsidiaries | |||||
Assets | |||||
Total assets | 12,380 | 12,357 | |||
Consolidating Adjustments | |||||
Assets | |||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 | |
Receivables | 0 | 0 | |||
Inventory, Operative Builders | 0 | 0 | |||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 0 | 0 | |||
Deferred tax assets, net | 0 | 0 | |||
Other assets | 0 | 0 | |||
Investments in subsidiaries | (67,657) | (49,776) | |||
Total assets | (3,795,839) | (3,572,005) | |||
Due from Affiliates | (3,728,182) | (3,522,229) | |||
Liabilities and stockholders' equity | |||||
Accounts payable, accrued expenses and other liabilities | 0 | 0 | |||
Notes payable | 0 | 0 | |||
Financial services | 0 | 0 | |||
Due to Affiliate | (3,728,182) | (3,522,229) | |||
Stockholder's equity | (67,657) | (49,776) | |||
Total liabilities and Stockholders' equity | (3,795,839) | (3,572,005) | |||
Consolidating Adjustments | Homebuilding [Member] | |||||
Assets | |||||
Cash and cash equivalents | 0 | 0 | |||
Total assets | 0 | 0 | |||
Liabilities and stockholders' equity | |||||
Total Homebuilding | 0 | 0 | |||
Consolidating Adjustments | Financial services [Member] | |||||
Assets | |||||
Total assets | $ 0 | $ 0 | |||
[1] | In 2017, we made a $5.3 million capital contribution to KBHS and received a $5.0 million distribution from HCM. |
Supplemental Guarantor Inform_7
Supplemental Guarantor Information (Condensed Consolidated Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Condensed Consolidated Statements of Cash Flows | |||
Net cash provided by (used in) operating activities | $ 221,512 | $ 513,219 | $ 188,655 |
Cash flows from investing activities: | |||
Contributions to unconsolidated joint ventures | (22,671) | (18,694) | (5,602) |
Return of investments in unconsolidated joint ventures | 9,934 | 11,035 | 4,307 |
Purchases of property and equipment, net | (7,370) | (8,085) | (4,784) |
Intercompany | 0 | 0 | 0 |
Net cash used in investing activities | (20,107) | (15,744) | (6,079) |
Cash flows from financing activities: | |||
Proceeds from (Repayments of) Restricted Cash, Financing Activities | 0 | 0 | 9,344 |
Issuance costs for unsecured revolving credit facility | 0 | (1,711) | 0 |
Repayment of senior notes | (300,000) | (270,326) | 0 |
Borrowings under revolving credit facility | 70,000 | 0 | 0 |
Repayments under revolving credit facility | (70,000) | 0 | 0 |
Payments on mortgages and land contracts due to land sellers and other loans | (14,751) | (106,382) | (67,845) |
Issuance of common stock under employee stock plans | 20,011 | 23,162 | 5,343 |
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Financing Activities | 0 | 958 | 186 |
Payments of cash dividends | (8,892) | (8,642) | (8,586) |
Tax payments associated with stock-based compensation awards | (8,476) | (6,673) | (2,421) |
Payments for Repurchase of Common Stock | (35,039) | 0 | (85,938) |
Intercompany | 0 | 0 | 0 |
Net cash used in financing activities | (347,147) | (369,614) | (149,917) |
Net increase (decrease) in cash and cash equivalents | (145,742) | 127,861 | 32,659 |
Cash and cash equivalents at beginning of year | 720,861 | 593,000 | 560,341 |
Cash and cash equivalents at end of year | 575,119 | 720,861 | 593,000 |
KB Home Corporate | |||
Condensed Consolidated Statements of Cash Flows | |||
Net cash provided by (used in) operating activities | 236,892 | 70,683 | (40,277) |
Cash flows from investing activities: | |||
Contributions to unconsolidated joint ventures | 0 | 0 | 0 |
Return of investments in unconsolidated joint ventures | 0 | 0 | 0 |
Purchases of property and equipment, net | (6,584) | (7,215) | (4,052) |
Intercompany | (43,128) | 311,857 | 144,651 |
Net cash used in investing activities | (49,712) | 304,642 | 140,599 |
Cash flows from financing activities: | |||
Proceeds from (Repayments of) Restricted Cash, Financing Activities | 9,344 | ||
Issuance costs for unsecured revolving credit facility | (1,711) | ||
Repayment of senior notes | (300,000) | (270,326) | |
Borrowings under revolving credit facility | 70,000 | ||
Repayments under revolving credit facility | (70,000) | ||
Payments on mortgages and land contracts due to land sellers and other loans | 0 | 0 | 0 |
Issuance of common stock under employee stock plans | 20,011 | 23,162 | 5,343 |
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Financing Activities | 958 | 186 | |
Payments of cash dividends | (8,892) | (8,642) | (8,586) |
Tax payments associated with stock-based compensation awards | (8,476) | (6,673) | (2,421) |
Payments for Repurchase of Common Stock | (35,039) | (85,938) | |
Intercompany | 0 | 0 | 0 |
Net cash used in financing activities | (332,396) | (263,232) | (82,072) |
Net increase (decrease) in cash and cash equivalents | (145,216) | 112,093 | 18,250 |
Cash and cash equivalents at beginning of year | 575,193 | 463,100 | 444,850 |
Cash and cash equivalents at end of year | 429,977 | 575,193 | 463,100 |
Guarantor Subsidiaries | |||
Condensed Consolidated Statements of Cash Flows | |||
Net cash provided by (used in) operating activities | 9,668 | 366,005 | 183,466 |
Cash flows from investing activities: | |||
Contributions to unconsolidated joint ventures | (22,672) | (13,569) | (4,852) |
Return of investments in unconsolidated joint ventures | 9,934 | 4,119 | 4,307 |
Purchases of property and equipment, net | (674) | (809) | (579) |
Intercompany | 0 | 0 | 0 |
Net cash used in investing activities | (13,412) | (10,259) | (1,124) |
Cash flows from financing activities: | |||
Proceeds from (Repayments of) Restricted Cash, Financing Activities | 0 | ||
Issuance costs for unsecured revolving credit facility | 0 | ||
Repayment of senior notes | 0 | 0 | |
Borrowings under revolving credit facility | 0 | ||
Repayments under revolving credit facility | 0 | ||
Payments on mortgages and land contracts due to land sellers and other loans | (13,831) | (106,382) | (67,845) |
Issuance of common stock under employee stock plans | 0 | 0 | 0 |
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Financing Activities | 0 | 0 | |
Payments of cash dividends | 0 | 0 | 0 |
Tax payments associated with stock-based compensation awards | 0 | 0 | 0 |
Payments for Repurchase of Common Stock | 0 | 0 | |
Intercompany | 27,724 | (251,147) | (108,039) |
Net cash used in financing activities | 13,893 | (357,529) | (175,884) |
Net increase (decrease) in cash and cash equivalents | 10,149 | (1,783) | 6,458 |
Cash and cash equivalents at beginning of year | 104,120 | 105,903 | 99,445 |
Cash and cash equivalents at end of year | 114,269 | 104,120 | 105,903 |
Non-Guarantor Subsidiaries | |||
Condensed Consolidated Statements of Cash Flows | |||
Net cash provided by (used in) operating activities | (25,048) | 76,531 | 45,466 |
Cash flows from investing activities: | |||
Contributions to unconsolidated joint ventures | 1 | (5,125) | (750) |
Return of investments in unconsolidated joint ventures | 0 | 6,916 | 0 |
Purchases of property and equipment, net | (112) | (61) | (153) |
Intercompany | 0 | 0 | 0 |
Net cash used in investing activities | (111) | 1,730 | (903) |
Cash flows from financing activities: | |||
Proceeds from (Repayments of) Restricted Cash, Financing Activities | 0 | ||
Issuance costs for unsecured revolving credit facility | 0 | ||
Repayment of senior notes | 0 | 0 | |
Borrowings under revolving credit facility | 0 | ||
Repayments under revolving credit facility | 0 | ||
Payments on mortgages and land contracts due to land sellers and other loans | (920) | 0 | 0 |
Issuance of common stock under employee stock plans | 0 | 0 | 0 |
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Financing Activities | 0 | 0 | |
Payments of cash dividends | 0 | 0 | 0 |
Tax payments associated with stock-based compensation awards | 0 | 0 | 0 |
Payments for Repurchase of Common Stock | 0 | 0 | |
Intercompany | 15,404 | (60,710) | (36,612) |
Net cash used in financing activities | 14,484 | (60,710) | (36,612) |
Net increase (decrease) in cash and cash equivalents | (10,675) | 17,551 | 7,951 |
Cash and cash equivalents at beginning of year | 41,548 | 23,997 | 16,046 |
Cash and cash equivalents at end of year | 30,873 | 41,548 | 23,997 |
Consolidating Adjustments | |||
Condensed Consolidated Statements of Cash Flows | |||
Net cash provided by (used in) operating activities | 0 | 0 | 0 |
Cash flows from investing activities: | |||
Contributions to unconsolidated joint ventures | 0 | 0 | 0 |
Return of investments in unconsolidated joint ventures | 0 | 0 | 0 |
Purchases of property and equipment, net | 0 | 0 | 0 |
Intercompany | 43,128 | (311,857) | (144,651) |
Net cash used in investing activities | 43,128 | (311,857) | (144,651) |
Cash flows from financing activities: | |||
Proceeds from (Repayments of) Restricted Cash, Financing Activities | 0 | ||
Issuance costs for unsecured revolving credit facility | 0 | ||
Repayment of senior notes | 0 | 0 | |
Borrowings under revolving credit facility | 0 | ||
Repayments under revolving credit facility | 0 | ||
Payments on mortgages and land contracts due to land sellers and other loans | 0 | 0 | 0 |
Issuance of common stock under employee stock plans | 0 | 0 | 0 |
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Financing Activities | 0 | 0 | |
Payments of cash dividends | 0 | 0 | 0 |
Tax payments associated with stock-based compensation awards | 0 | 0 | 0 |
Payments for Repurchase of Common Stock | 0 | 0 | |
Intercompany | (43,128) | 311,857 | 144,651 |
Net cash used in financing activities | (43,128) | 311,857 | 144,651 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of year | 0 | 0 | 0 |
Cash and cash equivalents at end of year | $ 0 | $ 0 | $ 0 |
Quarterly Results (unaudited)_2
Quarterly Results (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Provisional impact of Tax Refrom | $ 111,200 | ||||||||||
Impact of Tax Reform | $ 1,300 | $ 112,458 | $ 0 | $ 0 | |||||||
Revenues | 1,348,609 | $ 1,225,347 | $ 1,101,423 | 871,623 | $ 1,403,138 | $ 1,144,001 | $ 1,002,794 | $ 818,596 | 4,547,002 | 4,368,529 | 3,594,646 |
Gross profits | 245,931 | 222,893 | 189,222 | 141,192 | 255,442 | 188,110 | 155,382 | 119,697 | |||
Inventory Impairments and Land Option Contract Abandonments | 9,069 | 8,414 | 6,526 | 4,985 | 7,110 | 8,113 | 6,001 | 4,008 | 28,994 | 25,232 | 52,812 |
Pretax income (loss) | 128,936 | 114,676 | 78,308 | 46,045 | 137,346 | 79,208 | 51,982 | 21,459 | 367,965 | 289,995 | 149,315 |
Net income | $ 96,836 | $ 87,476 | $ 57,308 | $ (71,255) | $ 84,346 | $ 50,208 | $ 31,782 | $ 14,259 | $ 170,365 | $ 180,595 | $ 105,615 |
Earnings per share: Diluted (usd per share) | $ 0.96 | $ 0.87 | $ 0.57 | $ (0.82) | $ 0.84 | $ 0.51 | $ 0.33 | $ 0.15 | $ 1.71 | $ 1.85 | $ 1.12 |
Earnings per share: Basic (usd per share) | $ 1.09 | $ 0.99 | $ 0.65 | $ (0.82) | $ 0.97 | $ 0.58 | $ 0.37 | $ 0.17 | $ 1.93 | $ 2.09 | $ 1.23 |