The Company is party to various claims, legal actions and complaints relating to homes sold by the Company arising in the ordinary course of business. In the opinion of management, the disposition of these matters will not have a material adverse effect on the Company’s condensed consolidated financial statements. From time to time, the Company is also a party to various lawsuits involving purchases and sales of real property. These lawsuits often include claims regarding representations

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

Warranty and similar reserves for homes are established at an amount estimated to be adequate to cover potential costs for materials and labor with regard to warranty-type claims expected to be incurred subsequent to the delivery of a home. Reserves are determined based on historical data and trends with respect to similar product types and geographical areas. The activity in the Company’s warranty reserve, which is included in Homebuilding other liabilities, was as follows:


	Three Months Ended			Six Months Ended
	May 31,			May 31,
(In thousands)	2025		2024	2025	2024
Warranty reserve, beginning of the period	$	428,926	405,558	446,240	414,796
Warranties issued	63,164		72,572	123,632	134,348
Adjustments to pre-existing warranties from changes in estimates	11,824		(381)	14,386	(3,285)

Payments	(61,856)		(74,301)	(142,200)	(142,411)
Warranty reserve, end of period	$	442,058	403,448	442,058	403,448

(1)The adjustments to pre-existing warranties from changes in estimates during the three and six months ended May 31, 2025 and May 31, 2024 primarily related to specific claims in certain of the Company's homebuilding communities and other adjustments.

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


(Dollars in thousands)	At May 31, 2025		At November 30, 2024
Right-of-use assets	$	277,127	275,248
Lease liabilities	266,270		262,119
Weighted-average remaining lease term (in years)	5.2		4.7
Weighted-average discount rate	5.1%		5.0%

The Company has entered into agreements to lease certain office facilities and equipment under operating leases. Future minimum payments under the noncancellable leases in effect at May 31, 2025 were as follows:


(In thousands)	Lease Payments
2025	$	48,623
2026	73,824
2027	46,918
2028	35,963
2029 and thereafter	99,756

Total future minimum lease payments (1)	$	305,084
Less: Interest (2)	38,814
Present value of lease liabilities (2)	$	266,270

(2)The Company's leases do not include a readily determinable implicit rate. As such, the Company estimated the discount rate for these leases to determine the present value of lease payments at the lease commencement date. As of May 31, 2025, the Company recognized the lease liabilities on its condensed consolidated balance sheets within accounts payable and other liabilities of the respective segments.

In December 2023, the Company purchased its corporate headquarters building in which the Company had previously leased office space. This building contains approximately 213,200 square feet of office space, of which the Company leases approximately 53,000 square feet of unused office space to other tenants. On occasion, the Company may sublease other rented space which is no longer used for the Company's operations. For both the six months ended May 31, 2025 and 2024, the Company had an immaterial amount of sublease income.