Segment Information

6 Months Ended

May 31, 2020

We have identified five operating reporting segments, comprised of four homebuilding reporting segments and one financial services reporting segment. As of May 31, 2020, our homebuilding reporting segments conducted ongoing operations in the following states to the extent permitted by applicable public health orders as part of their respective COVID-19 control responses:

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 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 Southwest, Central and Southeast homebuilding reporting segments. Our financial services reporting 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.

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,
	2020			2019			2020			2019
Revenues:
West Coast	$	331,882		$	391,264		$	816,379		$	697,074
Southwest	175,251			184,827			366,569			342,483
Central	284,193			307,080			567,706			548,672
Southeast	118,954			135,500			232,008			239,230
Total	$	910,280		$	1,018,671		$	1,982,662		$	1,827,459

Pretax income (loss):
West Coast	$	27,820		$	24,789		$	61,849		$	42,705
Southwest	24,891			27,995			57,003			50,067
Central	26,896			27,199			49,574			45,782
Southeast	6,629			589			9,259			44
Corporate and other	(26,051		)	(28,403		)	(54,465		)	(54,391		)
Total	$	60,185		$	52,169		$	123,220		$	84,207



	Three Months Ended May 31,				Six Months Ended May 31,
	2020		2019		2020		2019
Inventory impairment and land option contract abandonment charges:
West Coast	$	672	$	3,832	$	5,064	$	7,083
Southwest	—		223		171		282
Central	3,452		121		4,436		366
Southeast	255		161		380		161
Total	$	4,379	$	4,337	$	10,051	$	7,892



	May 31, 2020		November 30, 2019
Assets:
West Coast	$	1,854,154	$	1,925,192
Southwest	714,672		674,310
Central	994,038		1,035,563
Southeast	421,385		441,451
Corporate and other	1,018,896		900,570
Total	$	5,003,145	$	4,977,086