Segment Information

9 Months Ended

Aug. 31, 2021

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, 2021, 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 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. On March 1, 2021, Guaranteed Rate, Inc. (“Guaranteed Rate”) acquired Stearns’ parent company. There have been no significant changes with respect to Stearns or its operations since the transaction was completed. 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,
	2021		2020		2021		2020
Revenues:
West Coast	$	663,563	$	379,025	$	1,803,769	$	1,195,404
Southwest	234,933		223,096		680,679		589,665
Central	384,532		297,022		1,084,795		864,728
Southeast	178,868		96,005		466,696		328,013
Total	$	1,461,896	$	995,148	$	4,035,939	$	2,977,810
Pretax income (loss):
West Coast	$	93,247	$	34,353	$	228,508	$	96,202
Southwest	46,021		39,295		127,985		96,298
Central	53,375		35,422		150,650		84,996
Southeast	19,979		5,986		50,955		15,245
Corporate and other	(47,806)		(23,405)		(115,215)		(77,870)
Total	$	164,816	$	91,651	$	442,883	$	214,871

	Three Months Ended August 31,				Nine Months Ended August 31,
	2021		2020		2021		2020
Inventory impairment and land option contract abandonment charges:
West Coast	$	6,458	$	5,546	$	10,376	$	10,610
Southwest	243		—		536		171
Central	—		1,084		70		5,520
Southeast	—		258		240		638
Total	$	6,701	$	6,888	$	11,222	$	16,939

	August 31, 2021		November 30, 2020
Assets:
West Coast	$	2,439,635	$	2,057,362
Southwest	954,983		738,765
Central	1,125,069		998,612
Southeast	610,634		448,388
Corporate and other	588,608		1,077,113
Total	$	5,718,929	$	5,320,240