Segment Information

We have identified five operating reporting segments, comprised of four homebuilding reporting segments and one financial services reporting segment. As of May 31, 2019, our homebuilding reporting segments conducted ongoing operations in the following states:

West Coast: California and Washington

Southwest: Arizona and Nevada

Central: Colorado and Texas

Southeast: Florida and North Carolina

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, first 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. Management evaluates 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 consumer mortgage loan (“mortgage loan”) originations, to our homebuyers indirectly through KBHS Home Loans, LLC (“KBHS”), an unconsolidated joint venture we formed with Stearns Ventures, LLC (“Stearns”). We and Stearns each have a 50.0% ownership interest, with Stearns providing management oversight of KBHS’ operations. The financial services reporting segment is separately reported in our consolidated financial statements.

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 management is responsible for, among other things, evaluating and selecting the geographic markets in which we operate, consistent with our overall business strategy; allocating capital resources to markets for land acquisition and development activities; making major personnel decisions related to employee compensation and benefits; and monitoring the financial and operational performance of our divisions. 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 reporting segments follow the same accounting policies used for our consolidated financial statements. The results of each reporting 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 homebuilding reporting segments (in thousands):



	Three Months Ended May 31,						Six Months Ended May 31,
	2019			2018			2019			2018
Revenues:
West Coast	$	391,264		$	496,740		$	697,074		$	883,392
Southwest	184,827			180,917			342,483			332,816
Central	307,080			313,806			548,672			557,987
Southeast	135,500			107,210			239,230			193,683
Total	$	1,018,671		$	1,098,673		$	1,827,459		$	1,967,878

Pretax income (loss):
West Coast	$	24,789		$	51,883		$	42,705		$	83,476
Southwest	27,995			20,577			50,067			35,554
Central	27,199			29,075			45,782			48,170
Southeast	589			787			44			2,107
Corporate and other	(28,403		)	(27,168		)	(54,391		)	(49,992		)
Total	$	52,169		$	75,154		$	84,207		$	119,315



Inventory impairment charges:
West Coast	$	3,441	$	5,993	$	6,637	$	10,692
Southwest	—		—		—		—
Central	—		—		—		—
Southeast	—		—		—		—
Total	$	3,441	$	5,993	$	6,637	$	10,692

Land option contract abandonment charges:
West Coast	$	391	$	388	$	446	$	596
Southwest	223		—		282		—
Central	121		145		366		223
Southeast	161		—		161		—
Total	$	896	$	533	$	1,255	$	819



	May 31, 2019		November 30, 2018
Inventories:
Homes under construction
West Coast	$	690,525	$	514,099
Southwest	184,154		173,036
Central	313,181		312,366
Southeast	152,523		125,651
Subtotal	1,340,383		1,125,152



	May 31, 2019		November 30, 2018
Land under development
West Coast	1,029,843		1,059,432
Southwest	422,507		404,201
Central	576,014		543,472
Southeast	214,370		212,831
Subtotal	2,242,734		2,219,936

Land held for future development or sale
West Coast	118,455		154,462
Southwest	30,141		21,137
Central	7,857		9,346
Southeast	41,283		52,806
Subtotal	197,736		237,751
Total	$	3,780,853	$	3,582,839



Assets:
West Coast	$	2,045,818	$	1,880,516
Southwest	678,270		631,509
Central	1,030,839		1,017,490
Southeast	448,302		463,224
Corporate and other	686,004		1,068,452
Total	$	4,889,233	$	5,061,191