Segment Information

9 Months Ended

Aug. 31, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

As of August 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 August 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. Prior to July 21, 2014, this segment also earned revenues pursuant to the terms of a marketing services agreement with Nationstar Mortgage LLC (“Nationstar”), which was our preferred mortgage lender that offered mortgage banking services, including residential consumer mortgage loan (“mortgage loan”) originations, to our homebuyers who elected to use the lender. Our homebuyers may select any lender of their choice to obtain mortgage financing for the purchase of their home.

In 2013, we entered into an agreement with Nationstar to form Home Community Mortgage, LLC (“HCM”). We have a 49.9% ownership interest and Nationstar has a 50.1% ownership interest in HCM. On July 21, 2014, HCM began offering an array of mortgage banking services, including mortgage loan originations, to our homebuyers, with Nationstar providing management oversight of HCM’s operations. Nationstar continued as our preferred mortgage lender until HCM’s operational launch. HCM 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):

	Nine Months Ended August 31,						Three Months Ended August 31,
	2014			2013			2014			2013
Revenues:
West Coast	$	707,532		$	746,232		$	265,491		$	266,638
Southwest	144,597			126,515			50,101			47,437
Central	477,518			381,342			179,972			154,545
Southeast	267,247			216,315			90,667			77,180
Total homebuilding revenues	1,596,894			1,470,404			586,231			545,800
Financial services	8,014			8,195			2,983			3,174
Total	$	1,604,908		$	1,478,599		$	589,214		$	548,974
Pretax income (loss):
West Coast	$	93,599		$	75,469		$	39,270		$	37,607
Southwest	7,599			2,026			2,543			1,185
Central	24,806			11,569			11,514			9,085
Southeast	(9,881		)	(35,012		)	(7,965		)	(9,920		)
Corporate and other	(54,937		)	(51,046		)	(18,548		)	(13,783		)
Total homebuilding pretax income	61,186			3,006			26,814			24,174
Financial services	5,162			7,041			1,847			2,404
Total	$	66,348		$	10,047		$	28,661		$	26,578

Equity in income (loss) of unconsolidated joint ventures:
West Coast	$	(146	)	$	(109	)	$	(88	)	$	(36	)
Southwest	(1,984		)	(1,919		)	(663		)	(755		)
Central	—			—			—			—
Southeast	3,291			370			—			135
Total	$	1,161		$	(1,658	)	$	(751	)	$	(656	)

Inventory impairment charges:
West Coast	$	—	$	—	$	—	$	—
Southwest	—		—		—		—
Central	—		—		—		—
Southeast	3,408		—		3,408		—
Total	$	3,408	$	—	$	3,408	$	—

	Nine Months Ended August 31,				Three Months Ended August 31,
	2014		2013		2014		2013
Land option contract abandonments:
West Coast	$	554	$	284	$	451	$	—
Southwest	—		—		—		—
Central	995		—		562		—
Southeast	254		—		—		—
Total	$	1,803	$	284	$	1,013	$	—

	August 31, 2014		November 30, 2013
Inventories:
Homes under construction
West Coast	$	564,945	$	275,516
Southwest	55,003		39,661
Central	213,011		157,572
Southeast	149,646		113,690
Subtotal	982,605		586,439
Land under development
West Coast	744,570		560,032
Southwest	332,056		106,654
Central	340,340		238,311
Southeast	224,035		161,919
Subtotal	1,641,001		1,066,916
Land held for future development
West Coast	332,000		308,636
Southwest	129,394		157,924
Central	24,357		15,193
Southeast	130,963		163,469
Subtotal	616,714		645,222
Total	$	3,240,320	$	2,298,577

	August 31, 2014		November 30, 2013
Investments in unconsolidated joint ventures:
West Coast	$	54,673	$	40,246
Southwest	16,433		80,877
Central	—		—
Southeast	2,501		9,069
Total	$	73,607	$	130,192
Assets:
West Coast	$	1,755,721	$	1,230,761
Southwest	554,082		402,443
Central	656,333		465,547
Southeast	536,251		456,965
Corporate and other	376,641		627,879
Total homebuilding assets	3,879,028		3,183,595
Financial services	8,363		10,040
Total	$	3,887,391	$	3,193,635