Segment Information

9 Months Ended

Aug. 31, 2013

Segment Reporting [Abstract]

Segment Information

Segment Information

As of August 31, 2013, we had identified five reporting segments, comprised of four homebuilding reporting segments and one financial services reporting segment, within our consolidated operations in accordance with Accounting Standards Codification Topic No. 280, “Segment Reporting.” As of August 31, 2013, our homebuilding reporting segments conducted ongoing operations in the following states:

West Coast: California

Southwest: Arizona, Nevada and New Mexico

Central: Colorado and Texas

Southeast: Florida, Maryland, North Carolina and Virginia

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, move-up and active adult homebuyers.

Our homebuilding reporting segments were identified 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 evaluate segment performance primarily based on segment pretax results.

Our financial services reporting segment offers insurance services to our homebuyers in the same markets as our homebuilding reporting segments and provides title services in the majority of our markets within our Central and Southeast homebuilding reporting segments. In addition, since the third quarter of 2011, this segment has earned revenues pursuant to the terms of a marketing services agreement with a preferred mortgage lender that offers mortgage banking services, including residential consumer mortgage loan (“mortgage loan”) originations, to our homebuyers who elect to use the lender. Our homebuyers are under no obligation to use our preferred mortgage lender and may select any lender of their choice to obtain mortgage financing for the purchase of a home. We make available to our homebuyers marketing materials and other information regarding our preferred mortgage lender’s financing options and mortgage loan products, and are compensated solely for the fair market value of these services. We have had no affiliation with our preferred mortgage lender or its affiliates. Except as discussed below, we have had no ownership, joint venture or other interests in or with these entities, or with respect to the revenues or income that may have been generated from their provision of mortgage banking services to, or origination of mortgage loans for, our homebuyers.

On January 21, 2013, we entered into an agreement with our current preferred mortgage lender, Nationstar Mortgage LLC (“Nationstar”), to form Home Community Mortgage, LLC (“Home Community Mortgage”), a mortgage banking company that will offer mortgage banking services to our homebuyers. We have a 49.9% ownership interest and Nationstar has a 50.1% ownership interest in Home Community Mortgage, with Nationstar providing management oversight of Home Community Mortgage’s operations. Nationstar will continue as our preferred mortgage lender until Home Community Mortgage begins offering mortgage banking services, which is expected in the first quarter of 2014. We made initial capital contributions of $5.0 million to Home Community Mortgage during the second quarter of 2013. Home Community Mortgage is accounted for as an unconsolidated joint venture within our financial services reporting segment.

Our reporting segments follow the same accounting policies used for our consolidated financial statements. Operational results of each 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 reporting segments (in thousands):

	Nine Months Ended August 31,						Three Months Ended August 31,
	2013			2012			2013			2012
Revenues:
West Coast	$	746,232		$	445,123		$	266,638		$	207,239
Southwest	126,515			95,127			47,437			35,634
Central	381,342			285,129			154,545			117,099
Southeast	216,315			148,676			77,180			61,583
Total homebuilding revenues	1,470,404			974,055			545,800			421,555
Financial services	8,195			7,859			3,174			2,949
Total	$	1,478,599		$	981,914		$	548,974		$	424,504
Pretax income (loss):
West Coast	$	75,469		$	(29,019	)	$	37,607		$	4,435
Southwest	2,026			(10,616		)	1,185			(3,434		)
Central	11,569			(3,152		)	9,085			986
Southeast	(35,012		)	5,494			(9,920		)	5,174
Corporate and other (a)	(51,046		)	(52,014		)	(13,783		)	(18,959		)
Total homebuilding pretax income (loss)	3,006			(89,307		)	24,174			(11,798		)
Financial services	7,041			7,830			2,404			4,359
Total	$	10,047		$	(81,477	)	$	26,578		$	(7,439	)

(a)    Corporate and other includes corporate general and administrative expenses.

	Nine Months Ended August 31,						Three Months Ended August 31,
	2013			2012			2013			2012
Equity in income (loss) of unconsolidated joint ventures:
West Coast	$	(109	)	$	(129	)	$	(36	)	$	(52	)
Southwest	(1,919		)	(458		)	(755		)	(241		)
Central	—			—			—			—
Southeast	370			550			135			571
Total	$	(1,658	)	$	(37	)	$	(656	)	$	278
Inventory impairments:
West Coast	$	—		$	14,040		$	—		$	933
Southwest	—			2,135			—			—
Central	—			1,267			—			—
Southeast	—			5,470			—			5,470
Total	$	—		$	22,912		$	—		$	6,403
Land option contract abandonments:
West Coast	$	284		$	—		$	—		$	—
Southwest	—			—			—			—
Central	—			—			—			—
Southeast	—			—			—			—
Total	$	284		$	—		$	—		$	—

	August 31, 2013		November 30, 2012
Assets:
West Coast	$	1,236,984	$	930,450
Southwest	387,654		319,863
Central	449,870		369,294
Southeast	431,270		341,460
Corporate and other	449,028		596,176
Total homebuilding assets	2,954,806		2,557,243
Financial services	10,035		4,455
Total	$	2,964,841	$	2,561,698
Investments in unconsolidated joint ventures:
West Coast	$	39,575	$	38,372
Southwest	77,721		75,920
Central	—		—
Southeast	9,253		9,382
Total	$	126,549	$	123,674