Segment Information

9 Months Ended

Aug. 31, 2020

Segment Reporting [Abstract]

Segment Information

Segment Information

We have identified five operating reporting segments, comprised of four homebuilding reporting segments and one financial services reporting segment. As of August 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 August 31,						Nine Months Ended August 31,
	2020			2019			2020			2019
Revenues:
West Coast	$	379,025		$	497,654		$	1,195,404		$	1,194,728
Southwest	223,096			180,238			589,665			522,721
Central	297,022			326,058			864,728			874,730
Southeast	96,005			152,905			328,013			392,135
Total	$	995,148		$	1,156,855		$	2,977,810		$	2,984,314
Pretax income (loss):
West Coast	$	34,353		$	43,775		$	96,202		$	86,480
Southwest	39,295			26,366			96,298			76,433
Central	35,422			34,417			84,996			80,199
Southeast	5,986			5,272			15,245			5,316
Corporate and other	(23,405		)	(24,538		)	(77,870		)	(78,929		)
Total	$	91,651		$	85,292		$	214,871		$	169,499

	Three Months Ended August 31,				Nine Months Ended August 31,
	2020		2019		2020		2019
Inventory impairment and land option contract abandonment charges:
West Coast	$	5,546	$	5,065	$	10,610	$	12,148
Southwest	—		126		171		408
Central	1,084		—		5,520		366
Southeast	258		60		638		221
Total	$	6,888	$	5,251	$	16,939	$	13,143

	August 31, 2020		November 30, 2019
Assets:
West Coast	$	1,916,237	$	1,925,192
Southwest	699,777		674,310
Central	977,535		1,035,563
Southeast	417,349		441,451
Corporate and other	1,131,768		900,570
Total	$	5,142,666	$	4,977,086