Segment Information

9 Months Ended

Aug. 31, 2022

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, 2022, 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 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”), our unconsolidated joint venture with GR Alliance Ventures, LLC (“GR Alliance”). We and GR Alliance each have a 50.0% ownership interest, with GR Alliance providing management oversight of KBHS’ operations.

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,
	2022		2021		2022		2021
Revenues:
West Coast	$	829,405	$	663,563	$	2,249,496	$	1,803,769
Southwest	321,808		234,933		822,499		680,679
Central	443,581		384,532		1,231,949		1,084,795
Southeast	244,094		178,868		643,924		466,696
Total	$	1,838,888	$	1,461,896	$	4,947,868	$	4,035,939
Pretax income (loss):
West Coast	$	171,041	$	93,247	$	418,593	$	228,508
Southwest	77,368		46,021		177,908		127,985
Central	79,258		53,375		183,574		150,650
Southeast	40,202		19,979		99,527		50,955
Corporate and other	(46,265)		(47,806)		(124,188)		(115,215)
Total	$	321,604	$	164,816	$	755,414	$	442,883

	Three Months Ended August 31,				Nine Months Ended August 31,
	2022		2021		2022		2021
Inventory impairment and land option contract abandonment charges:
West Coast	$	4,465	$	6,458	$	4,622	$	10,376
Southwest	432		243		596		536
Central	1,311		—		1,897		70
Southeast	2,256		—		2,256		240
Total	$	8,464	$	6,701	$	9,371	$	11,222

	August 31, 2022		November 30, 2021
Assets:
West Coast	$	2,755,936	$	2,520,374
Southwest	1,074,914		938,300
Central	1,495,817		1,168,242
Southeast	920,828		684,752
Corporate and other	426,572		480,048
Total	$	6,674,067	$	5,791,716