Segment Information

3 Months Ended

Feb. 29, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

As of February 29, 2016, we had identified five operating reporting segments, comprised of four homebuilding reporting segments and one financial services reporting segment. As of February 29, 2016, our homebuilding reporting segments conducted ongoing operations in the following states:

West Coast: California

Southwest: Arizona and Nevada

Central: Colorado 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. We offer mortgage banking services, including residential mortgage loan (“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 Mortgage LLC (“Nationstar”). Through these respective subsidiaries, 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. Our homebuyers may select any lender of their choice to obtain mortgage financing for the purchase of their home.

Corporate and other is a non-operating segment that develops and oversees the implementation of company-wide strategic initiatives and provides support to our reporting segments by centralizing certain administrative functions. 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 our 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 29, 2016			February 28, 2015
Revenues:
West Coast	$	283,846		$	277,255
Southwest	100,332			65,137
Central	202,161			159,148
Southeast	89,403			76,348
Total homebuilding revenues	675,742			577,888
Financial services	2,629			2,233
Total	$	678,371		$	580,121
Pretax income (loss):
West Coast	$	22,116		$	21,854
Southwest	12,503			3,443
Central	10,579			10,226
Southeast	(7,564		)	(9,613		)
Corporate and other	(22,790		)	(17,094		)
Total homebuilding pretax income	14,844			8,816
Financial services	1,183			1,683
Total	$	16,027		$	10,499

Inventory impairment charges:
West Coast	$	—	$	—
Southwest	—		—
Central	787		—
Southeast	559		—
Total	$	1,346	$	—
Land option contract abandonments:
West Coast	$	160	$	—
Southwest	—		—
Central	460		—
Southeast	—		448
Total	$	620	$	448

	February 29, 2016		November 30, 2015
Inventories:
Homes under construction
West Coast	$	582,674	$	535,795
Southwest	106,733		112,032
Central	283,817		263,345
Southeast	137,602		120,184
Subtotal	1,110,826		1,031,356
Land under development
West Coast	873,838		788,607
Southwest	340,375		317,331
Central	435,758		421,783
Southeast	229,392		238,324
Subtotal	1,879,363		1,766,045
Land held for future development
West Coast	261,721		277,954
Southwest	90,322		104,677
Central	18,349		22,082
Southeast	108,063		111,633
Subtotal	478,455		516,346
Total	$	3,468,644	$	3,313,747

Assets:
West Coast	$	1,831,971	$	1,740,299
Southwest	579,723		582,030
Central	844,836		829,811
Southeast	507,915		507,844
Corporate and other	1,144,749		1,341,359
Total homebuilding assets	4,909,194		5,001,343
Financial services	12,862		14,028
Total	$	4,922,056	$	5,015,371