replace_table_token_8_th ( 1 ) gross margin as a percentage of revenues from home sales excluding valuation adjustments and operating margin as a percentage of revenues from home sales excluding valuation adjustments are non-gaap financial measures disclosed by certain of our competitors and have been presented because we find it useful in evaluating our performance and believe that it helps readers of our financial statements compare our operations with those of our competitors . see the non-gaap financial measures section . 2011 versus 2010 for both the years ended november 30 , 2011 and 2010 , revenues from home sales were $ 2.6 billion . there was a 1 % increase in the average sales price of homes delivered , offset by a 1 % decrease in the number of home deliveries , excluding unconsolidated entities . new home deliveries , excluding unconsolidated entities , decreased to 10,746 homes in the year ended november 30 , 2011 from 10,859 homes last year . the decrease in home deliveries was primarily in our homebuilding houston and homebuilding west segments and homebuilding other as a result of the absence of the federal homebuyer tax credit , partially offset by an increase in home deliveries in our homebuilding southeast florida segment . the increase in deliveries in our 23 homebuilding southeast florida segment was the result of an increase in home deliveries from communities acquired in the prior year that had sales but only a small amount of deliveries during the year ended november 30 , 2010. the average sales price of homes delivered increased to $ 244,000 in the year ended november 30 , 2011 from $ 243,000 in the same period last year , driven primarily by an increase in the average sales price of home deliveries in all of our homebuilding segments and homebuilding other , except for our homebuilding west segment , primarily due to a higher percentage of home deliveries in higher priced communities . this increase was partially offset by a reduction in average sales price in our homebuilding west segment due to a shift to smaller square footage homes generating a lower average sales price . sales incentives offered to homebuyers were $ 33,700 per home delivered in the year ended november 30 , 2011 , or 12.1 % as a percentage of home sales revenue , compared to $ 32,800 per home delivered in the same period last year , or 11.9 % as a percentage of home sales revenue . currently , our biggest competition is from the sales of existing and foreclosed homes . we differentiate our new homes from those homes by issuing new home warranty , and in certain markets emphasizing energy efficiency and new technology such as keyless door locks and lighting and thermostats controlled remotely from outside the home . gross margins on home sales were $ 523.4 million , or 19.9 % , in the year ended november 30 , 2011 , which included $ 35.7 million of valuation adjustments , compared to gross margins on home sales of $ 517.9 million , or 19.7 % , in the year ended november 30 , 2010 , which included $ 44.7 million of valuation adjustments . gross margins on home sales , excluding valuation adjustments , were $ 559.1 million , or 21.3 % , in the year ended november 30 , 2011 , compared to $ 562.6 million , or 21.4 % , in the year ended november 30 , 2010. gross margins on home sales excluding valuation adjustments is a non-gaap financial measure , which is discussed in the non-gaap financial measures section . gross profits on land sales totaled $ 7.7 million in the year ended november 30 , 2011 , net of $ 0.5 million of valuation adjustments and $ 1.8 million in write-offs of deposits and pre-acquisition costs , compared to gross profits on land sales of $ 21.4 million in the year ended november 30 , 2010 , primarily due to a $ 14.1 million reduction of an obligation related to a profit participation agreement . gross profits on land sales for the year ended november 30 , 2010 were net of $ 3.4 million of valuation adjustments and $ 3.1 million in write-offs of deposits and pre-acquisition costs . selling , general and administrative expenses were $ 384.8 million in the year ended november 30 , 2011 , which included $ 8.4 million related to additional expenses associated with remedying pre-existing liabilities of a previously acquired company , offset by $ 8.0 million related to the receipt of a settlement discussed below . selling , general and administrative expenses were $ 377.0 million in the year ended november 30 , 2010. selling , general and administrative expenses as a percentage of revenues from home sales increased to 14.7 % in the year ended november 30 , 2011 , from 14.3 % in 2010. lennar homebuilding equity in loss from unconsolidated entities was $ 62.7 million in the year ended november 30 , 2011 , which primarily included our share of valuation adjustments of $ 57.6 million related to an asset distribution from a lennar homebuilding unconsolidated entity as the result of a linked transaction . this was offset by a pre-tax gain of $ 62.3 million included in lennar homebuilding other income ( expense ) , net , related to that unconsolidated entity 's net asset distribution . the transaction resulted in a net pre-tax gain of $ 4.7 million . in addition , lennar homebuilding equity in loss from unconsolidated entities included $ 8.9 million of valuation adjustments related to assets of lennar homebuilding 's unconsolidated entities , offset by our share of a gain on debt extinguishment at one of lennar homebuilding 's unconsolidated entities totaling $ 15.4 million . story_separator_special_tag management finds these to be important and useful measures in evaluating our performance because it discloses the profit we generate on homes we actually delivered during the period , as our valuation adjustments generally relate to inventory that we did not deliver during the period . gross margins as a percentage of revenue on home sales excluding valuation adjustments and operating margins as a percentage of revenues from home sales excluding valuation adjustments also are important to our management because they assist our management in making strategic decisions regarding our construction pace , product mix and product pricing based upon the profitability we generated on homes we actually delivered during previous periods . we believe investors also find gross margins and operating margins on home sales excluding valuation adjustments , and gross margins and operating margins on home sales as a percentage of revenues from home sales excluding valuation adjustments to be important and useful because each of them discloses a profitability measure on homes we actually delivered in a period that can be compared to the profitability on homes we delivered in a prior period without regard to the variability of valuation adjustments recorded from period to period . in addition , to the extent that our competitors provide similar information , disclosure of our gross margins and operating margins on home sales excluding valuation adjustments and gross margins and operating margins on home sales as a percentage of revenues from home sales excluding valuation adjustments helps readers of our financial statements compare our ability to generate profits with regard to the homes we deliver in a period to our competitors ' ability to generate profits with regard to the homes they deliver in the same period . although management finds gross margins and operating margins on home sales excluding valuation adjustments and gross margins and operating margins on home sales as a percentage of revenues from home sales excluding valuation adjustments to be important measures in conducting and evaluating our operations , each of these measures has limitations as an analytical tool as it is not reflective of the actual profitability generated by our company during the period . this is because they exclude charges we recorded relating to inventory that was impaired during the period . in addition , because gross margins and operating margins on home sales excluding valuation adjustments and gross margins and operating margins as a percentage of revenues from home sales excluding valuation adjustments are financial measures that are not calculated in accordance with generally accepted accounting principles ( gaap ) , they may not be completely comparable to similarly titled measures of our competitors due to differences in methods of calculation and charges being excluded . our management compensates for the limitations of using gross margins and operating margins on home sales excluding valuation adjustments and gross and operating margins as a percentage of revenues from home sales excluding valuation adjustments by using these non-gaap measures only to supplement our gaap results in order to provide a more complete understanding of the factors and trends affecting our operations . in order to analyze our overall performance and actual profitability relative to our homebuilding operations , we also compare our gross margins and operating margins on home sales during the period and gross margins and operating margins as a percentage of revenues from home sales , inclusive of valuation adjustments , with the same measures during prior comparable periods . due to the limitations discussed above , gross margins and operating margins on home sales excluding valuation adjustments and gross margins and operating margins as a percentage of revenues from home sales excluding valuation adjustments should not be viewed in isolation as they are not substitutes for gaap measures of gross margins and operating margins . 27 the table set forth below reconciles our gross margins on home sales excluding valuation adjustments and our operating margins as a percentage of revenues from home sales excluding valuation adjustments for the years ended november 30 , 2011 , 2010 and 2009 to our gross margins and operating margins on home sales for the years ended november 30 , 2011 , 2010 and 2009 : replace_table_token_9_th homebuilding segments our homebuilding operations construct and sell homes primarily for first-time , move-up and active adult homebuyers primarily under the lennar brand name . in addition , our homebuilding operations also purchase , develop and sell land to third parties . in certain circumstances , we diversify our operations through strategic alliances and attempt to minimize our risks by investing with third parties in joint ventures . we have disaggregated our homebuilding southeast florida division from our homebuilding east reportable segment and have presented homebuilding southeast florida as a separate reportable segment due to the division currently achieving one of the quantitative thresholds set forth in accounting standards codification topic 280 , segment reporting , ( asc 280 ) . in addition , we reclassified the homebuilding activities in the states of georgia , north carolina and south carolina from homebuilding other to our homebuilding east reportable segment because these states currently meet the reportable segment aggregation criteria in asc 280. all prior year segment information has been restated to conform with the 2011 presentation . the change in reportable segments and homebuilding other had no effect on our consolidated financial position , results of operations or cash flows for the periods presented . as of and for the year ended november 30 , 2011 , we have grouped our homebuilding activities into five reportable segments , which we refer to as homebuilding east , homebuilding central , homebuilding west , homebuilding southeast florida and homebuilding houston . information about homebuilding activities in which our homebuilding activities are not economically similar to other states in the same geographic area is grouped under homebuilding other ,  which is not considered a reportable segment . reference in this management 's discussion and analysis of financial condition and results of operations

debt , require the issuer of certain convertible debt instruments that may be settled in cash on conversion to separately account for the liability and equity components of the instrument in a manner that reflects the issuer 's non-convertible debt borrowing rate . we have applied these provisions to our 2.75 % convertible senior notes . we estimated the fair value of the 2.75 % convertible senior notes using similar debt instruments at issuance that did not have a conversion feature and allocated the residual value to an equity component that represents the estimated fair value of the conversion feature at issuance . the debt discount of the 2.75 % convertible senior notes is being amortized over five years and the annual effective interest rate is 7.1 % after giving effect to the amortization of the discount and deferred financing costs . at both november 30 , 2011 and 2010 , the principal amount of the 2.75 % convertible senior notes was $ 446.0 million . at november 30 , 2011 and 2010 , the carrying amount of the equity component included in stockholders ' equity was $ 57.6 million and $ 70.1 million , respectively , and the net carrying amount of the 2.75 % convertible senior notes included in lennar homebuilding senior notes and other notes payable was $ 388.4 million and $ 375.9 million , respectively . during the years ended november 30 , 2011 and 2010 , the amount of interest recognized relating to both the contractual interest and amortization of the discount was $ 24.8 million and $ 1.7 million , respectively . in may 2010 , we issued $ 250 million of 6.95 % senior notes due 2018 ( the 6.95 % senior notes ) at a price of 98.929 % in a private placement . proceeds from the offering , after payment of initial purchaser 's discount and expenses , were $ 243.9 million .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```debt , require the issuer of certain convertible debt instruments that may be settled in cash on conversion to separately account for the liability and equity components of the instrument in a manner that reflects the issuer 's non-convertible debt borrowing rate . we have applied these provisions to our 2.75 % convertible senior notes . we estimated the fair value of the 2.75 % convertible senior notes using similar debt instruments at issuance that did not have a conversion feature and allocated the residual value to an equity component that represents the estimated fair value of the conversion feature at issuance . the debt discount of the 2.75 % convertible senior notes is being amortized over five years and the annual effective interest rate is 7.1 % after giving effect to the amortization of the discount and deferred financing costs . at both november 30 , 2011 and 2010 , the principal amount of the 2.75 % convertible senior notes was $ 446.0 million . at november 30 , 2011 and 2010 , the carrying amount of the equity component included in stockholders ' equity was $ 57.6 million and $ 70.1 million , respectively , and the net carrying amount of the 2.75 % convertible senior notes included in lennar homebuilding senior notes and other notes payable was $ 388.4 million and $ 375.9 million , respectively . during the years ended november 30 , 2011 and 2010 , the amount of interest recognized relating to both the contractual interest and amortization of the discount was $ 24.8 million and $ 1.7 million , respectively . in may 2010 , we issued $ 250 million of 6.95 % senior notes due 2018 ( the 6.95 % senior notes ) at a price of 98.929 % in a private placement . proceeds from the offering , after payment of initial purchaser 's discount and expenses , were $ 243.9 million .
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 Suspicious Activity Report : replace_table_token_8_th ( 1 ) gross margin as a percentage of revenues from home sales excluding valuation adjustments and operating margin as a percentage of revenues from home sales excluding valuation adjustments are non-gaap financial measures disclosed by certain of our competitors and have been presented because we find it useful in evaluating our performance and believe that it helps readers of our financial statements compare our operations with those of our competitors . see the non-gaap financial measures section . 2011 versus 2010 for both the years ended november 30 , 2011 and 2010 , revenues from home sales were $ 2.6 billion . there was a 1 % increase in the average sales price of homes delivered , offset by a 1 % decrease in the number of home deliveries , excluding unconsolidated entities . new home deliveries , excluding unconsolidated entities , decreased to 10,746 homes in the year ended november 30 , 2011 from 10,859 homes last year . the decrease in home deliveries was primarily in our homebuilding houston and homebuilding west segments and homebuilding other as a result of the absence of the federal homebuyer tax credit , partially offset by an increase in home deliveries in our homebuilding southeast florida segment . the increase in deliveries in our 23 homebuilding southeast florida segment was the result of an increase in home deliveries from communities acquired in the prior year that had sales but only a small amount of deliveries during the year ended november 30 , 2010. the average sales price of homes delivered increased to $ 244,000 in the year ended november 30 , 2011 from $ 243,000 in the same period last year , driven primarily by an increase in the average sales price of home deliveries in all of our homebuilding segments and homebuilding other , except for our homebuilding west segment , primarily due to a higher percentage of home deliveries in higher priced communities . this increase was partially offset by a reduction in average sales price in our homebuilding west segment due to a shift to smaller square footage homes generating a lower average sales price . sales incentives offered to homebuyers were $ 33,700 per home delivered in the year ended november 30 , 2011 , or 12.1 % as a percentage of home sales revenue , compared to $ 32,800 per home delivered in the same period last year , or 11.9 % as a percentage of home sales revenue . currently , our biggest competition is from the sales of existing and foreclosed homes . we differentiate our new homes from those homes by issuing new home warranty , and in certain markets emphasizing energy efficiency and new technology such as keyless door locks and lighting and thermostats controlled remotely from outside the home . gross margins on home sales were $ 523.4 million , or 19.9 % , in the year ended november 30 , 2011 , which included $ 35.7 million of valuation adjustments , compared to gross margins on home sales of $ 517.9 million , or 19.7 % , in the year ended november 30 , 2010 , which included $ 44.7 million of valuation adjustments . gross margins on home sales , excluding valuation adjustments , were $ 559.1 million , or 21.3 % , in the year ended november 30 , 2011 , compared to $ 562.6 million , or 21.4 % , in the year ended november 30 , 2010. gross margins on home sales excluding valuation adjustments is a non-gaap financial measure , which is discussed in the non-gaap financial measures section . gross profits on land sales totaled $ 7.7 million in the year ended november 30 , 2011 , net of $ 0.5 million of valuation adjustments and $ 1.8 million in write-offs of deposits and pre-acquisition costs , compared to gross profits on land sales of $ 21.4 million in the year ended november 30 , 2010 , primarily due to a $ 14.1 million reduction of an obligation related to a profit participation agreement . gross profits on land sales for the year ended november 30 , 2010 were net of $ 3.4 million of valuation adjustments and $ 3.1 million in write-offs of deposits and pre-acquisition costs . selling , general and administrative expenses were $ 384.8 million in the year ended november 30 , 2011 , which included $ 8.4 million related to additional expenses associated with remedying pre-existing liabilities of a previously acquired company , offset by $ 8.0 million related to the receipt of a settlement discussed below . selling , general and administrative expenses were $ 377.0 million in the year ended november 30 , 2010. selling , general and administrative expenses as a percentage of revenues from home sales increased to 14.7 % in the year ended november 30 , 2011 , from 14.3 % in 2010. lennar homebuilding equity in loss from unconsolidated entities was $ 62.7 million in the year ended november 30 , 2011 , which primarily included our share of valuation adjustments of $ 57.6 million related to an asset distribution from a lennar homebuilding unconsolidated entity as the result of a linked transaction . this was offset by a pre-tax gain of $ 62.3 million included in lennar homebuilding other income ( expense ) , net , related to that unconsolidated entity 's net asset distribution . the transaction resulted in a net pre-tax gain of $ 4.7 million . in addition , lennar homebuilding equity in loss from unconsolidated entities included $ 8.9 million of valuation adjustments related to assets of lennar homebuilding 's unconsolidated entities , offset by our share of a gain on debt extinguishment at one of lennar homebuilding 's unconsolidated entities totaling $ 15.4 million . story_separator_special_tag management finds these to be important and useful measures in evaluating our performance because it discloses the profit we generate on homes we actually delivered during the period , as our valuation adjustments generally relate to inventory that we did not deliver during the period . gross margins as a percentage of revenue on home sales excluding valuation adjustments and operating margins as a percentage of revenues from home sales excluding valuation adjustments also are important to our management because they assist our management in making strategic decisions regarding our construction pace , product mix and product pricing based upon the profitability we generated on homes we actually delivered during previous periods . we believe investors also find gross margins and operating margins on home sales excluding valuation adjustments , and gross margins and operating margins on home sales as a percentage of revenues from home sales excluding valuation adjustments to be important and useful because each of them discloses a profitability measure on homes we actually delivered in a period that can be compared to the profitability on homes we delivered in a prior period without regard to the variability of valuation adjustments recorded from period to period . in addition , to the extent that our competitors provide similar information , disclosure of our gross margins and operating margins on home sales excluding valuation adjustments and gross margins and operating margins on home sales as a percentage of revenues from home sales excluding valuation adjustments helps readers of our financial statements compare our ability to generate profits with regard to the homes we deliver in a period to our competitors ' ability to generate profits with regard to the homes they deliver in the same period . although management finds gross margins and operating margins on home sales excluding valuation adjustments and gross margins and operating margins on home sales as a percentage of revenues from home sales excluding valuation adjustments to be important measures in conducting and evaluating our operations , each of these measures has limitations as an analytical tool as it is not reflective of the actual profitability generated by our company during the period . this is because they exclude charges we recorded relating to inventory that was impaired during the period . in addition , because gross margins and operating margins on home sales excluding valuation adjustments and gross margins and operating margins as a percentage of revenues from home sales excluding valuation adjustments are financial measures that are not calculated in accordance with generally accepted accounting principles ( gaap ) , they may not be completely comparable to similarly titled measures of our competitors due to differences in methods of calculation and charges being excluded . our management compensates for the limitations of using gross margins and operating margins on home sales excluding valuation adjustments and gross and operating margins as a percentage of revenues from home sales excluding valuation adjustments by using these non-gaap measures only to supplement our gaap results in order to provide a more complete understanding of the factors and trends affecting our operations . in order to analyze our overall performance and actual profitability relative to our homebuilding operations , we also compare our gross margins and operating margins on home sales during the period and gross margins and operating margins as a percentage of revenues from home sales , inclusive of valuation adjustments , with the same measures during prior comparable periods . due to the limitations discussed above , gross margins and operating margins on home sales excluding valuation adjustments and gross margins and operating margins as a percentage of revenues from home sales excluding valuation adjustments should not be viewed in isolation as they are not substitutes for gaap measures of gross margins and operating margins . 27 the table set forth below reconciles our gross margins on home sales excluding valuation adjustments and our operating margins as a percentage of revenues from home sales excluding valuation adjustments for the years ended november 30 , 2011 , 2010 and 2009 to our gross margins and operating margins on home sales for the years ended november 30 , 2011 , 2010 and 2009 : replace_table_token_9_th homebuilding segments our homebuilding operations construct and sell homes primarily for first-time , move-up and active adult homebuyers primarily under the lennar brand name . in addition , our homebuilding operations also purchase , develop and sell land to third parties . in certain circumstances , we diversify our operations through strategic alliances and attempt to minimize our risks by investing with third parties in joint ventures . we have disaggregated our homebuilding southeast florida division from our homebuilding east reportable segment and have presented homebuilding southeast florida as a separate reportable segment due to the division currently achieving one of the quantitative thresholds set forth in accounting standards codification topic 280 , segment reporting , ( asc 280 ) . in addition , we reclassified the homebuilding activities in the states of georgia , north carolina and south carolina from homebuilding other to our homebuilding east reportable segment because these states currently meet the reportable segment aggregation criteria in asc 280. all prior year segment information has been restated to conform with the 2011 presentation . the change in reportable segments and homebuilding other had no effect on our consolidated financial position , results of operations or cash flows for the periods presented . as of and for the year ended november 30 , 2011 , we have grouped our homebuilding activities into five reportable segments , which we refer to as homebuilding east , homebuilding central , homebuilding west , homebuilding southeast florida and homebuilding houston . information about homebuilding activities in which our homebuilding activities are not economically similar to other states in the same geographic area is grouped under homebuilding other ,  which is not considered a reportable segment . reference in this management 's discussion and analysis of financial condition and results of operations

