Segment Information

6 Months Ended

May 31, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

As of May 31, 2014, we had identified five operating 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 May 31, 2014, our homebuilding reporting segments conducted ongoing operations in the following states:

West Coast: California

Southwest: Arizona and Nevada

Central: Colorado, New Mexico 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 property and casualty insurance and, in certain instances, earthquake, flood and personal property insurance 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. This segment also earns revenues pursuant to the terms of a marketing services agreement with Nationstar Mortgage LLC (“Nationstar”), our 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. 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.

On January 21, 2013, we entered into an agreement with Nationstar to form Home Community Mortgage, LLC (“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. Home Community Mortgage is accounted for as an unconsolidated joint venture within our financial services reporting segment.

Corporate and other is a non-operating segment that develops and implements company-wide strategic initiatives and provides support to our homebuilding reporting segments by centralizing certain administrative functions, such as promotional marketing, legal, purchasing administration, architecture, accounting, treasury, insurance and risk management, information technology and human resources, to benefit from economies of scale. Corporate and other includes general and administrative expenses related to operating our corporate headquarters. A portion of the expenses incurred by Corporate and other is allocated to the homebuilding reporting segments.

Our segments follow the same accounting policies used for our consolidated financial statements. The 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 segments (in thousands):

	Six Months Ended May 31,						Three Months Ended May 31,
	2014			2013			2014			2013
Revenues:
West Coast	$	442,041		$	479,594		$	260,320		$	273,490
Southwest	94,496			79,078			48,381			47,247
Central	297,546			226,797			172,384			120,305
Southeast	176,580			139,135			81,311			80,746
Total homebuilding revenues	1,010,663			924,604			562,396			521,788
Financial services	5,031			5,021			2,611			2,618
Total	$	1,015,694		$	929,625		$	565,007		$	524,406
Pretax income (loss):
West Coast	$	54,329		$	37,862		$	35,964		$	28,020
Southwest	5,056			841			3,771			1,590
Central	13,292			2,484			10,516			2,348
Southeast	(1,916		)	(25,092		)	(5,757		)	(16,768		)
Corporate and other	(36,389		)	(37,263		)	(19,323		)	(21,341		)
Total homebuilding pretax income (loss)	34,372			(21,168		)	25,171			(6,151		)
Financial services	3,315			4,637			1,753			1,978
Total	$	37,687		$	(16,531	)	$	26,924		$	(4,173	)

Equity in income (loss) of unconsolidated joint ventures:
West Coast	$	(58	)	$	(73	)	$	(20	)	$	(40	)
Southwest	(1,321		)	(1,164		)	(658		)	(639		)
Central	—			—			—			—
Southeast	3,291			235			—			112
Total	$	1,912		$	(1,002	)	$	(678	)	$	(567	)

Land option contract abandonments:
West Coast	$	103	$	284	$	103	$	284
Southwest	—		—		—		—
Central	433		—		—		—
Southeast	254		—		254		—
Total	$	790	$	284	$	357	$	284

	May 31, 2014		November 30, 2013
Inventories:
Homes under construction
West Coast	$	465,052	$	275,516
Southwest	46,175		39,661
Central	189,191		157,572
Southeast	123,855		113,690
Subtotal	824,273		586,439
Land under development
West Coast	729,946		560,032
Southwest	298,501		106,654
Central	323,277		238,311
Southeast	212,301		161,919
Subtotal	1,564,025		1,066,916

Land held for future development
West Coast	307,179		308,636
Southwest	137,605		157,924
Central	24,274		15,193
Southeast	148,762		163,469
Subtotal	617,820		645,222
Total	$	3,006,118	$	2,298,577
Investments in unconsolidated joint ventures:
West Coast	$	48,756	$	40,246
Southwest	16,337		80,877
Central	—		—
Southeast	2,501		9,069
Total	$	67,594	$	130,192
Assets:
West Coast	$	1,615,126	$	1,230,761
Southwest	521,977		402,443
Central	610,280		465,547
Southeast	506,494		456,965
Corporate and other	564,881		627,879
Total homebuilding assets	3,818,758		3,183,595
Financial services	9,268		10,040
Total	$	3,828,026	$	3,193,635