Segment Information

3 Months Ended

Feb. 28, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

As of February 28, 2015, we had identified five operating reporting segments, comprised of four homebuilding reporting segments and one financial services reporting segment. As of February 28, 2015, 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 operations generate most of their revenues from the delivery of completed homes to homebuyers. They also earn revenues 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 homebuyers in the same markets as our homebuilding reporting segments, and provides title services in the majority of our markets located within our Central and Southeast homebuilding reporting segments. This segment earns revenues primarily from insurance commissions and from the provision of title services. Prior to July 21, 2014, this segment also earned revenues pursuant to the terms of a marketing services agreement with Nationstar Mortgage LLC (“Nationstar”), under which Nationstar was our preferred mortgage lender and offered mortgage banking services, including residential 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. Since July 21, 2014, we have offered mortgage banking services, including mortgage loan originations, to our homebuyers indirectly through Home Community Mortgage, LLC (“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, with Nationstar providing management oversight of HCM’s operations.

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. 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):

	Three Months Ended February 28,
	2015			2014
Revenues:
West Coast	$	277,255		$	181,721
Southwest	65,137			46,115
Central	159,148			125,162
Southeast	76,348			95,269
Total homebuilding revenues	577,888			448,267
Financial services	2,233			2,420
Total	$	580,121		$	450,687
Pretax income (loss):
West Coast	$	21,854		$	18,365
Southwest	3,443			1,285
Central	10,226			2,776
Southeast	(9,613		)	3,841
Corporate and other	(17,094		)	(17,066		)
Total homebuilding pretax income	8,816			9,201
Financial services	1,683			1,562
Total	$	10,499		$	10,763

Equity in income (loss) of unconsolidated joint ventures:
West Coast	$	(220	)	$	(38	)
Southwest	(127		)	(663		)
Central	—			—
Southeast	—			3,291
Total	$	(347	)	$	2,590

Land option contract abandonments:
West Coast	$	—	$	—
Southwest	—		—
Central	—		433
Southeast	448		—
Total	$	448	$	433

	February 28, 2015		November 30, 2014
Inventories:
Homes under construction
West Coast	$	542,508	$	536,843
Southwest	73,923		65,647
Central	219,023		201,164
Southeast	120,974		124,618
Subtotal	956,428		928,272

	February 28, 2015		November 30, 2014
Land under development
West Coast	$	735,906	$	765,577
Southwest	354,578		334,691
Central	380,992		363,933
Southeast	261,128		245,948
Subtotal	1,732,604		1,710,149
Land held for future development
West Coast	285,060		294,060
Southwest	126,888		138,367
Central	22,067		22,957
Southeast	123,336		124,582
Subtotal	557,351		579,966
Total	$	3,246,383	$	3,218,387

Investments in unconsolidated joint ventures:
West Coast	$	61,745	$	59,552
Southwest	9,256		17,388
Central	—		—
Southeast	2,501		2,501
Total	$	73,502	$	79,441
Assets:
West Coast	$	1,693,930	$	1,695,753
Southwest	594,416		579,201
Central	722,388		678,139
Southeast	539,813		531,011
Corporate and other	1,429,165		1,262,960
Total homebuilding assets	4,979,712		4,747,064
Financial services	10,145		10,486
Total	$	4,989,857	$	4,757,550