Segment Information

12 Months Ended

Nov. 30, 2013

Segment Reporting [Abstract]

Segment Information

Segment Information

As of November 30, 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 November 30, 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 operations represented most of our business for the years ended November 30, 2013, 2012 and 2011. 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 operations generate the majority of their revenues from the delivery of completed homes to homebuyers, and to a lesser extent from the sale of land.

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 property and casualty insurance and, in certain instances, earthquake, flood and personal property insurance to our homebuyersin the same markets as our homebuilding reporting segmentsand provides title services in the majority of our markets located 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 mortgage loan originations, to our homebuyerswho 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. Except as discussed below, we have had no affiliation, ownership, joint venture or other interests in or with our preferred mortgage lender or its affiliates, 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. Prior to late June 2011, this reporting segment provided mortgage banking services to our homebuyers indirectly through KBA Mortgage.

On January 21, 2013, we entered into an agreement with Nationstar to form Home Community Mortgage, a mortgage banking company that will offer an array of 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 to occur in the first quarter of 2014. We made capital contributions of $5.0 million to Home Community Mortgage during the year ended November 30, 2013. Home Community Mortgage is accounted for as an unconsolidated joint venture within our financial services reporting segment of our consolidated financial statements.

Our reporting segments follow the same accounting policies used for our consolidated financial statements as described in Note 1. Summary of Significant Accounting Policies. 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):

	Years Ended November 30,
	2013			2012			2011
Revenues:
West Coast	$	1,020,218		$	755,259		$	589,387
Southwest	175,252			132,438			139,872
Central	565,120			436,407			369,705
Southeast	324,388			224,328			206,598
Total homebuilding revenues	2,084,978			1,548,432			1,305,562
Financial services	12,152			11,683			10,304
Total	$	2,097,130		$	1,560,115		$	1,315,866
Pretax income (loss):
West Coast	$	118,264		$	(10,467	)	$	19,639
Southwest	2,903			(10,194		)	(108,265		)
Central	22,275			1,449			(12,924		)
Southeast	(45,992		)	(1,183		)	(37,983		)
Corporate and other (a)	(69,271		)	(69,541		)	(67,713		)
Total homebuilding pretax income (loss)	28,179			(89,936		)	(207,246		)
Financial services	10,184			10,883			26,078
Total	$	38,363		$	(79,053	)	$	(181,168	)
Equity in income (loss) of unconsolidated joint ventures:
West Coast	$	(148	)	$	(174	)	$	68
Southwest	(2,355		)	(811		)	(55,902		)
Central	—			—			—
Southeast	496			591			(5		)
Total	$	(2,007	)	$	(394	)	$	(55,839	)
(a) Corporate and other includes corporate general and administrative expenses.

	Years Ended November 30,
	2013		2012		2011
Inventory impairment charges:
West Coast	$	—	$	19,235	$	2,598
Southwest	—		2,135		18,715
Central	—		1,267		51
Southeast	391		5,470		1,366
Total	$	391	$	28,107	$	22,730
Land option contract abandonment charges:
West Coast	$	3,190	$	—	$	704
Southwest	—		—		296
Central	—		133		1,310
Southeast	—		293		751
Total	$	3,190	$	426	$	3,061
Joint venture impairment charges:
West Coast	$	—	$	—	$	—
Southwest	—		—		53,727
Central	—		—		—
Southeast	—		—		—
Total	$	—	$	—	$	53,727

	November 30,
	2013		2012
Assets:
West Coast	$	1,230,761	$	930,450
Southwest	402,443		319,863
Central	465,547		369,294
Southeast	456,965		341,460
Corporate and other	627,879		596,176
Total homebuilding assets	3,183,595		2,557,243
Financial services	10,040		4,455
Total	$	3,193,635	$	2,561,698
Investments in unconsolidated joint ventures:
West Coast	$	40,246	$	38,372
Southwest	80,877		75,920
Central	—		—
Southeast	9,069		9,382
Total	$	130,192	$	123,674