Segment Information

12 Months Ended

Nov. 30, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

As of November 30, 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 November 30, 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 operations represented most of our business for the years ended November 30, 2014, 2013 and 2012. 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. Prior to July 21, 2014, this segment also earned revenues pursuant to the terms of a marketing services agreement with a preferred mortgage lender that offered mortgage banking services, including 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 a home. Since July 21, 2014, we have offered mortgage banking services, including mortgage loan originations, to our homebuyers indirectly through HCM, a joint venture of a subsidiary of ours and a subsidiary of Nationstar. We have a 49.9% ownership interest and Nationstar has a 50.1% ownership interest in HCM. Beginning in the second quarter of 2012 and continuing until HCM’s operational launch, Nationstar was our preferred mortgage lender, offering mortgage banking services, including mortgage loan originations, to our homebuyers at our communities. Prior to May 2012, we had a similar preferred mortgage lender relationship with MetLife Home Loans, a division of MetLife Bank, N.A.

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. 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 as described in Note 1. Summary of Significant Accounting Policies. 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):

	Years Ended November 30,
	2014		2013		2012
Revenues:
West Coast	$	1,089,857	$	1,020,218	$	755,259
Southwest	199,504		175,252		132,438
Central	698,429		565,120		436,407
Southeast	401,853		324,388		224,328
Total homebuilding revenues	2,389,643		2,084,978		1,548,432
Financial services	11,306		12,152		11,683
Total	$	2,400,949	$	2,097,130	$	1,560,115

	Years Ended November 30,
	2014			2013			2012
Pretax income (loss):
West Coast	$	116,325		$	118,264		$	(10,467	)
Southwest	6,015			2,903			(10,194		)
Central	47,214			22,275			1,449
Southeast	(11,158		)	(45,992		)	(1,183		)
Corporate and other	(71,993		)	(69,271		)	(69,541		)
Total homebuilding pretax income (loss)	86,403			28,179			(89,936		)
Financial services	8,546			10,184			10,883
Total	$	94,949		$	38,363		$	(79,053	)
Equity in income (loss) of unconsolidated joint ventures:
West Coast	$	(374	)	$	(148	)	$	(174	)
Southwest	(2,176		)	(2,355		)	(811		)
Central	—			—			—
Southeast	3,291			496			591
Total	$	741		$	(2,007	)	$	(394	)
Inventory impairment charges:
West Coast	$	27,285		$	—		$	19,235
Southwest	6,392			—			2,135
Central	—			—			1,267
Southeast	3,951			391			5,470
Total	$	37,628		$	391		$	28,107
Land option contract abandonment charges:
West Coast	$	554		$	3,190		$	—
Southwest	—			—			—
Central	995			—			133
Southeast	254			—			293
Total	$	1,803		$	3,190		$	426

	November 30,
	2014		2013
Inventories:
Homes under construction
West Coast	$	536,843	$	275,516
Southwest	65,647		39,661
Central	201,164		157,572
Southeast	124,618		113,690
Subtotal	928,272		586,439
Land under development
West Coast	765,577		560,032
Southwest	334,691		106,654
Central	363,933		238,311
Southeast	245,948		161,919
Subtotal	1,710,149		1,066,916
Land held for future development
West Coast	294,060		308,636
Southwest	138,367		157,924
Central	22,957		15,193
Southeast	124,582		163,469
Subtotal	579,966		645,222
Total	$	3,218,387	$	2,298,577
Investments in unconsolidated joint ventures:
West Coast	$	59,552	$	40,246
Southwest	17,388		80,877
Central	—		—
Southeast	2,501		9,069
Total	$	79,441	$	130,192
Assets:
West Coast	$	1,695,753	$	1,230,761
Southwest	579,201		402,443
Central	678,139		465,547
Southeast	531,011		456,965
Corporate and other	1,262,960		627,879
Total homebuilding assets	4,747,064		3,183,595
Financial services	10,486		10,040
Total	$	4,757,550	$	3,193,635