Segment Information

12 Months Ended

Nov. 30, 2021

Segment Reporting [Abstract]

Segment Information

Segment Information

An operating segment is defined as a component of an enterprise for which separate financial information is available and for which segment results are evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. We have identified each of our homebuilding divisions as an operating segment. Our homebuilding operating segments have been aggregated into four homebuilding reporting segments 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 also have one financial services reporting segment. Management evaluates segment performance primarily based on segment pretax results.

As of November 30, 2021, our homebuilding reporting segments conducted ongoing operations in the following states:

West Coast:	California, Idaho 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 segment earns revenues primarily from insurance commissions and from the provision of title services.

We offer mortgage banking services, including mortgage loan originations, to our homebuyers indirectly through KBHS, an unconsolidated joint venture we initially formed with Stearns, with each party having a 50.0% ownership interest and Stearns providing management oversight of KBHS’ operations. On March 1, 2021, Guaranteed Rate acquired the parent company of Stearns. In October 2021, Stearns was renamed as GR Alliance. We are not aware of any significant changes with respect to GR Alliance or its operations as a result of the transaction being completed. 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 as described in Note 1 – Summary of Significant Accounting Policies. 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):

	Years Ended November 30,
	2021		2020		2019
Revenues:
West Coast	$	2,552,382	$	1,748,582	$	1,912,146
Southwest	965,139		796,810		764,816
Central	1,503,857		1,192,869		1,267,892
Southeast	683,651		429,441		592,804
Total	$	5,705,029	$	4,167,702	$	4,537,658

Pretax income (loss):
West Coast	$	345,714	$	151,039	$	178,078
Southwest	186,351		133,386		111,016
Central	200,159		128,802		126,304
Southeast	77,663		22,950		18,550
Corporate and other	(152,976)		(104,677)		(108,759)
Total	$	656,911	$	331,500	$	325,189
Equity in income (loss) of unconsolidated joint ventures:
West Coast	$	62	$	12,972	$	(851)
Southwest	(466)		(497)		(697)
Central	—		—		—
Southeast	(1)		(1)		(1)
Total	$	(405)	$	12,474	$	(1,549)
Inventory impairment and land option contract abandonment charges:
West Coast	$	11,046	$	21,941	$	15,567
Southwest	536		570		408
Central	131		5,520		848
Southeast	240		638		468
Total	$	11,953	$	28,669	$	17,291

	November 30,
	2021		2020
Inventories:
West Coast	$	2,300,096	$	1,928,500
Southwest	875,438		688,807
Central	995,811		867,170
Southeast	631,484		413,005
Total	$	4,802,829	$	3,897,482

	November 30,
	2021		2020
Investments in unconsolidated joint ventures:
West Coast	$	33,576	$	42,762
Southwest	—		1,516
Central	—		—
Southeast	2,512		2,507
Total	$	36,088	$	46,785
Assets:
West Coast	$	2,520,374	$	2,057,362
Southwest	938,300		738,765
Central	1,168,242		998,612
Southeast	684,752		448,388
Corporate and other	480,048		1,077,113
Total	$	5,791,716	$	5,320,240