Commitments and Contingent Liabilities

9 Months Ended

Aug. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

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

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

Leases

The Company has entered into agreements to lease certain office facilities and equipment under operating leases. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. ROU assets and right-of-use 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)	August 31, 2021			November 30, 2020
Right-of-use assets	$	157,164		113,390
Lease liabilities	165,095			122,836
Weighted-average remaining lease term (in years)	8.3			2.6
Weighted-average discount rate	2.9		%	3.1	%

Future minimum payments under the noncancellable leases in effect at August 31, 2021 were as follows:


(In thousands)	Lease Payments
2021	$	7,982
2022	34,360
2023	28,283
2024	23,113
2025	18,702
2026 and thereafter	74,108
Total future minimum lease payments (1)	$	186,548
Less: Interest (2)	21,453
Present value of lease liabilities (2)	$	165,095

(1)Total future minimum lease payments exclude variable lease costs of $26.2 million and short-term lease costs of $2.1 million. This also does not include minimum lease payments for executed and legally enforceable leases that have not yet commenced. As of August 31, 2021, the minimum lease payments for these leases that have not yet commenced were immaterial.

(2)The Company's leases do not include a readily determinable implicit rate. As such, the Company has estimated the discount rate for these leases to determine the present value of lease payments at the lease commencement date or as of December 1, 2019, which was the effective date of ASU 2016-02. As of August 31, 2021, the weighted average remaining lease term and weighted average discount rate used in calculating the lease liabilities were 8.3 years and 2.9%, respectively. The Company recognized the lease liabilities on its condensed consolidated balance sheets within accounts payable or other liabilities of the respective segments.

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


	Nine months ended
(In thousands)	August 31, 2021		August 31, 2020
Rental expense	$	63,232	62,554
Payment on lease liabilities	22,174		40,359

On occasion, the Company may sublease rented space which is no longer used for the Company's operations. For both the nine months ended August 31, 2021 and 2020, the Company had an immaterial amount of sublease income.